Weekend News Round Up - Newsquawk Asia-Pac Market Open

• US stocks finished higher on Friday and Treasuries were ultimately bid across the curve despite the initial two-way price action seen following the PCE data in which the headline readings matched estimates and the core figures were firmer-than-expected but did little to change the Fed narrative, while the attention turned to the upcoming pivotal week packed with major risk events.
• A dozen were killed including children and more were injured by a rocket that hit a football pitch in Golan, while Israeli PM Netanyahu said Hezbollah will pay heavily for the rocket attack that killed children and the PM’s office later announced that the cabinet authorised the PM and Defence Minister to determine the type and response to the Hezbollah attack.
• Looking ahead, highlights include Vietnam CPI and Thailand Industrial Production, Supply from Australia.

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LOOKING AHEAD

• Highlights include Vietnam CPI and Thailand Industrial Production, Supply from Australia.
• Click for the Newsquawk Week Ahead.

US TRADE

• US stocks finished higher on Friday and Treasuries were ultimately bid across the curve despite the initial two-way price action seen following the PCE data in which the headline readings matched estimates and the core figures were firmer-than-expected but did little to change the Fed narrative, while the attention turned to the upcoming pivotal week packed with major risk events.
• SPX +1.1% at 5,459, NDX +1.0% at 19,024, DJIA +1.6% at 40,589, RUT +1.7% at 2,260
• Click here for a detailed summary.

NOTABLE HEADLINES

• US President Biden plans to unveil a proposal on Monday for dramatically reforming the Supreme Court and is expected to push for a constitutional amendment limiting immunity for presidents and other officeholders, according to Politico.
• Apple and IAM CORE union of retail workers reached a tentative labour agreement, while it was also reported that Apple Intelligence will miss the initial launch of the upcoming iOS 18 overhaul.
• US jury found that Abbott’s (ABP) premature infant formula caused a girl’s dangerous bowel disease and awarded the mother USD 95mln in compensatory damages and USD 400mln in punitive damages, according to Reuters.

CRYPTO

• US Republican presidential candidate Trump said he wants crypto to be mined and made in America, while he will create a strategic national Bitcoin stockpile if elected and it will be his policy to keep 100% of all Bitcoin the US holds in the future if he is elected.

COMMODITIES

• Iraq’s June oil exports averaged 3.4mln bpd, according to the Oil Ministry.
• Ukraine said it struck an oil depot in Russia’s Kursk region.

GEOPOLITICAL

MIDDLE EAST

• A dozen were killed including children and more were injured by a rocket that hit a football pitch in Golan, according to Israeli Channel 13.
• Israeli PM Netanyahu said Hezbollah will pay heavily for the rocket attack that killed children, while the PM’s office later announced that the cabinet authorised the PM and Defence Minister to determine the type and response to the Hezbollah attack. It was also reported that Israel’s Foreign Minister said they are approaching the moment of an all-out war against Hezbollah and Lebanon.
• Israeli military spokesperson said they are preparing a response against Hezbollah, while the Israeli military later said it struck Hezbollah targets deep inside Lebanese territory and in southern Lebanon.
• Hezbollah announced it was on high alert and cleared some key sites in east and south Lebanon in case of possible Israeli escalation, according to two securities sources cited by Reuters.
• US Secretary of State Blinken said every indication is that the rocket that hit Golan Heights was from Hezbollah and the US stands with Israel’s right to defend its citizens from terrorist attacks, while he added that a ceasefire in Gaza would be an opportunity to bring lasting calm to the blue line between Israel and Lebanon.
• US asked Lebanon’s government to restrain Hezbollah, while Hezbollah asked the US to urge restraint from Israel, according to Lebanon’s Foreign Minister who warned a significant attack by Israel would lead to a regional war.
• US is highly concerned that the Golan Heights attack could lead to an all-out war between Israel and Hezbollah, according to Axios. It was also reported that the White House said it has been in continuous contact with Israeli and Lebanese counterparts since the attack that killed a number of children playing football and it is working on a diplomatic solution that would end attacks on the Israeli-Lebanon border.
• UN officials urged maximum restraint on the Lebanon-Israel front and warned exchanges of fire on the Lebanon-Israel border could engulf the region in catastrophe beyond belief.
• Iran’s Foreign Ministry spokesperson warned Israel about any new ‘adventure’ in Lebanon regarding the Golan Heights incident.

OTHER

• Russian President Putin said Russia took note of US and German plans to deploy long-range missiles in Germany and noted that important Russian facilities will be in range of those US systems, while he warned that Russia will take similar actions to deploy and will no longer adhere to its unilateral INF moratorium if the US goes ahead with such plans.
• Russia’s Defence Ministry said its forces have taken two villages in Ukraine’s Donetsk region.
• US State Department senior official said Secretary of State Blinken and Chinese Foreign Minister Wang Yi had an extended conversation about Taiwan and Blinken raised concerns over China’s recent provocative actions regarding Taiwan including the simulated blockade around Taiwanese President Lai’s inauguration. Blinken raised human rights issues including Tibet, Hong Kong and Taiwan, while they agreed to keep making progress on military-to-military ties.
• US and Japan expressed concern Russia will undermine regional stability by giving North Korea WMD and missile technology, while they are concerned about the rapid expansion of China’s nuclear arsenal and will advance talks on a high-priority effort to expand co-production of defence equipment including air-to-air missiles and enhanced patriot air defence interceptors. Furthermore, the US reiterated its commitment to defend Japan with conventional and nuclear forces, while they condemned Russia’s procurement of North Korean weapons.
• South Korean Foreign Minister Cho stressed the importance of freedom of navigation and flight in the South China Sea at the ASEAN meeting, while he added peace and stability in the Taiwan Strait are just as important as the South China Sea.
• ASEAN communiqué said they strongly condemn violence against civilians in Myanmar and call for an immediate cessation, while they underlined the importance of a serious engagement and cessation of hostilities in Ukraine, as well as expressed concern over the dire humanitarian situation and alarming casualties in Gaza. Furthermore, they said North Korean missile tests are worrisome developments and urged UNSC resolution compliance, while they also affirmed the need to cease actions in the South China Sea that can complicate and escalate disputes.
• Russian Foreign Minister Lavrov expressed concern over the US-South Korean nuclear operations plan, according to Yonhap.

ASIA-PAC

NOTABLE HEADLINES

• Italian Premier Meloni said Italy is to sign a three-year action plan with China to experiment with new forms of cooperation, according to ANSA.
• China Evergrande New Energy Vehicle said some creditors of two subsidiaries applied to the court for their bankruptcy reorganisation, while it said the matter has a major impact on the Co. and its units’ production and operating activities.

DATA RECAP

• Chinese Industrial Profits YY (Jun) 3.6% (Prev. 0.7%)
• Chinese Industrial Profits YTD YY (Jun) 3.5% (Prev. 3.4%)

EU/UK

NOTABLE HEADLINES

• ECB's Schnabel said on Friday that services inflation is showing that the last mile in the inflation fight is especially difficult, according to Faz. Schnabel also said some data was not quite in line with the projections and that a first cut doesn't automatically lead to a series.