Newsquawk Daily Asia-Pac Opening News - 19th October 2026

US stocks closed sharply lower on Friday as AI-financing worries and high oil prices weighed. US President Trump said on Truth Social that he is negotiating peace between Russia and Ukraine and that significant progress is being made. US President Trump signed an executive order waiving Graham Act sanctions and tariffs on Russian energy, drawing bipartisan criticism. Pakistani Army Chief Asim Munir may visit Tehran this week, ISNA reported. Cost-of-living and education protests swept across Europe; around 550,000 people marched in France, with unrest also in Milan, Lisbon and Brussels. Looking ahead, highlights include Chinese Activity Data (Sep/Q3), Canadian CPI (Sep). Speakers include ECB's Lane and Elderson. Earnings from Cleveland-Cliffs. SNAPSHOT STOCKS S&P 500 -1.1% Nasdaq Comp. -2.1% DJIA -0.3% Russell 2000 -1.7% ES Dec'26 - RTY Dec'26 - NQ Dec'26 - YM Dec'26 - FX DXY -0.2% (101.78) EUR/USD +0.2% (1.1239) USD/JPY U/C (157.98) GBP/USD +0.4% (1.3322) BONDS US T-Note Dec'26 +3 ticks 10yr Bund Dec'26 -14 ticks US 10yr Yield 5.08% German 10yr Yield 3.42% ENERGY & METALS WTI Dec'26 - Brent Dec'26 - Spot Gold -0.1% LME Copper - CRYPTO Bitcoin -0.7% Ethereum -2.2% As of 21:30BST Click for the Newsquawk Week in Focus. US TRADE US stocks closed sharply lower on Friday as AI-financing worries and high oil prices weighed; chipmakers led the tech selloff, with Micron (MU) and Intel (INTC) among the decliners, and the Nasdaq suffered its biggest daily drop since 23rd July, while CoreWeave (CRWV) fell 12% to extend its weekly loss to 25%. On the week, the S&P 500 (-1.95%) and Nasdaq (-4.48%) posted their steepest weekly losses since June, while the Dow (+0.67%) notched a second straight weekly gain. SPX -1.09% at 7,659, Nasdaq Comp. -2.14% at 26,140, DJI -0.34% at 52,002. NOTABLE NORTH AMERICAN HEADLINES US Treasury Secretary Bessent said the US is in an energy shock and inflation will slow when the war ends. Canadian PM Carney confirmed four soldiers died and dozens were injured in the fire at Canadian Forces Base Wainwright in Alberta; CBC had earlier reported seven dead. US President Trump blamed aides for a faltering Republican midterm strategy as Democrats led House polls, Reuters reported. US President Trump pledged USD 5k for every adult if the GOP wins Congress, speaking at a Kentucky rally ahead of the 3rd November midterms. "No Kings" rallies were held across the US, urging early voting. White House Press Secretary Katie Zacharia left the role after less than a week. Anthropic co-founder Jack Clark said an internal model suggested AI could lift US GDP to USD 44tln by 2030 from USD 30tln. Alberta is set to vote on Monday on starting the legal process for a separation referendum; Canadian PM Carney and Alberta Premier Smith both oppose separation. US President Trump said the US economy has never been stronger; regarding oil drilling in Texas, said nobody can take a chance on it. US Capitol Police is investigating a suspicious substance in the Dirksen Senate building. White House Press Secretary said, on inflation, that US President Trump is doing everything he possibly can. BofA Weekly Flow Show (w/e 14th Oct): USTs saw USD 3.6bln of inflows, the 16th consecutive week of inflows; USD 39.1bln went to US stocks and USD 10bln to tech stocks, while cash saw USD 53.1bln of outflows. TARIFFS/TRADE US Ambassador to the EU Puzder warned of devastating retaliation if Brussels limits spectrum access for non-EU firms, after the EU decided to allocate most mobile satellite spectrum to domestic companies, FT reported. China proposed export controls on 12 solar-manufacturing technologies, including bans on exports of thin-wafer and perovskite technology. US State Department is reportedly updating its travel advisory for mainland China to include an increased risk level for wrongful detention, according to a new plan seen by Semafor. Mexico's Ebrard said Commerce Secretary Lutnick has never told him he opposes lowering Section 232 tariffs on Mexico. US lifted restrictions on new Mexican airline flights to the US from Mexico City's AICM and AIFA airports. US President Trump said the US will at some point make an "amazing" deal with Canada. EFTA states signed a free trade agreement with Vietnam, with around half of Norwegian exports to become tariff-free upon entry into force. France and Germany reached agreement on a joint approach to securing the future of the European automotive industry, planning incentives for investment, R&D and EU production; the two also agreed to exclude Japanese models from EU preferential EV treatment. French President Macron said the EU needs to extend the deal to plastics, chemicals and ferroalloys. China's Commerce Ministry said the EU should not fantasise about gaining benefits through pressure, nor underestimate China's determination and ability to safeguard its own interests; urged the EU to work with China to promote the healthy and stable development of China-EU economic and trade relations. DATA RECAP US Industrial Production (Sep MM) 0.7% vs. Exp. 0.4% (Prev. 0.1%). US Industrial Production (Sep YY) 2.2% (Prev. 1.4%). US Manufacturing Production (Sep MM) 0.3% vs. Exp. 0.3% (Prev. -0.2%). US Manufacturing Production (Sep YY) 1.1% (Prev. 0.9%). US Capacity Utilization (Sep) 76.9% vs. Exp. 76.5% (Prev. 76.4%). US Import Prices (Sep MM) 1.1% vs. Exp. 0.8% (Prev. 0.5%). US Import Prices (Sep YY) 8.1% (Prev. 6.7%). US Export Prices (Sep MM) 2.2% vs. Exp. 1.0% (Prev. 1.2%). US Export Prices (Sep YY) 11.6% (Prev. 8.6%). US NY Fed Services Activity Index (Oct) -20.7 (Prev. -8.7). US Net Long-term TIC Flows (Aug) 279.2B vs. Exp. 75.2B (Prev. -27.9B). Japan's US Treasury holdings were 1.068tln in Aug vs 1.104tln in July; the UK's were 1.010tln vs 998bln; China's were 591bln vs 618bln. US Overall Net Capital Flows (Aug) 199.80B (Prev. 87.40B). US Foreign Bond Investment (Aug) 108.90B (Prev. -3.60B). US Monthly Budget Statement (Sep) -27B vs. Exp. -29B (Prev. -167B). Canadian Housing Starts (Sep) 250K vs. Exp. 232.5K (Prev. 229K). Canadian Foreign Securities Purchases (Aug) -17.31B vs. Exp. 23.59B (Prev. 20.64B). Canadian Purchases of Foreign Securities (Aug) 23.90B (Prev. -30.63B). NOTABLE US EQUITY HEADLINES Microsoft (MSFT) pulled out of a UK data centre deal with Nscale, the Telegraph reported. Accenture (ACN) explored a sale of its Chinese operations for up to USD 1.5bln, FT reported. Anthropic launched a public benefit fund, pledging 5% of its shares plus a further 2% at the board's discretion for every 50% rise in valuation; together with founder and employee pledges, roughly 20% of its shares are set to go to the public good. It has already committed USD 200mln to research AI's labour market effects, and the fund's equity is barred from lobbying and political donations. NVIDIA (NVDA) CEO Huang said the AI market turmoil will pass, Bloomberg reported. Amazon (AMZN) AWS CFO said AI spending is sustainable, Axios reported. Anthropic investors weighed a lower valuation for its planned IPO, which had been tipped to value the company at over USD 2tln, Reuters reported citing sources. FX The dollar was weaker against peers on Friday as AI concerns continued to dominate FX price action. OCBC warned the Taiwan dollar is under pressure from foreign fund outflows. FIXED INCOME T-notes steepened as Fed Chair Warsh avoided forward guidance, while AI weakness and higher oil prices drove choppy trade; T-note futures (Z6) settled 2+ ticks lower at 105-14+, with the 2yr -1.1bps at 4.746% and the 10yr +2.3bps at 5.102%. COMMODITIES Oil prices rose on Friday amid the Iran war, with Brent up 3.7% at USD 109.86/bbl. Prices were sent higher as speculation grew over potential strikes on Saudi Arabia's East-West pipeline. Turkey's Energy Minister said Turkey will receive some diesel under the US-Russia supply deal. US DoE issued an RFP to exchange up to 17mln bbls of crude from the SPR. Venezuela expects nearly USD 76bln of oil investment over five years; a US-Venezuela bilateral oil accord covers 17 fields and 250 rigs. Iraq aims to produce 450k bpd from four Kirkuk fields. Pemex set its November price constants for Maya crude to the US Gulf and Asia. US President Trump reiterated that oil prices are going to come down very soon. Russian Deputy PM Novak said the gasoline shortage on the Russian market is currently about 5%, Interfax reported; said the global oil market is unbalanced, has experienced a shock and has a significant supply deficit, with the imbalance estimated at 4-6mln barrels. Turkish Energy Minister said he discussed possible LNG cooperation with the chairman of Russia's Novatek. Italy and the EU Commission reached an agreement on a gas price cap law. Germany's Upper House approved the further release of oil stocks following the G7 agreement. Reports suggested that force majeure at a natural gas field has been lifted. South Korea is reportedly set to extend its oil fuel price cap for another four weeks. DATA RECAP US Baker Hughes Total Rig Count (Oct/16) 603 (Prev. 603). US Baker Hughes Oil Rig Count (Oct/16) 459 (Prev. 462). US Baker Hughes Gas Rig Count (Oct/16) 133 (Prev. 132). CENTRAL BANKS Barclays sees 25bps Fed hikes in both December and January (prev. saw a hike in December this year). BoJ Governor Ueda said he has been watching the weak JPY and the Middle East in terms of inflation; stabilisation of 2% inflation is increasingly important and the BoJ will continue to adjust accommodation. IMF said the BoJ may need to tighten faster if inflation beats forecasts, and that JPY moves since mid-2025 were driven by speculation rather than yield differentials. ECB's Lagarde said Eurozone headline inflation rose to 3.8% in September on energy, with no material wage response yet; sees growth of 0.9% in 2026 and 1.4% in 2027 after 25bps hikes in June and September, according to her IMFC statement. ECB's Nagel said the job of fighting inflation is not done and the ECB may have to do more. ECB's Rehn said the Bank is staying vigilant to second-round inflation effects. BoE Governor Bailey was among the delegates who walked out of the IMFC meeting in Bangkok as Russian Finance Minister Siluanov spoke. PBoC Governor Pan backed closer IMF surveillance of fiscal risks in major advanced economies and said China opposes all forms of protectionism. BoC Governor Macklem said high oil prices raised the risk of broader inflation, though they had boosted Canadian growth and investment. SNB's Tschudin said Swiss inflation is slightly higher than it was in June. GEOPOLITICAL MIDDLE EAST Pakistani Army Chief Asim Munir may visit Tehran this week, ISNA reported. IRIB reported that Saudi Arabia's East-West oil pipeline had been targeted once again, adding that a new thermal anomaly was detected in the Yanbu area, near the pipeline. Iran's Foreign Minister Araghchi said Tehran's seven-day proposal to reopen the Strait of Hormuz remains on the table: the strait could reopen within six days if the US meets Iran's conditions, with talks resuming on day seven; Iran said it is still studying US comments on the proposal. US President Trump endorsed Netanyahu ahead of Israel's 27th October election, said Iran had been systematically destroyed militarily and financially, and warned the US would soon finish the job unless Iran rapidly changes course; added that if anyone other than Netanyahu led Israel, the US would have to do the work itself. Israeli PM Netanyahu said Israel's goal is to eliminate the Iranian threat and topple the regime in Tehran. Iran's SNSC Secretary Rezaei said the armed forces have prepared a new operational plan for any renewed attack. Iran's parliament approved US- and UN-sanctioned Mehrdad Akhlaqi Ketabchi as defence minister. Russian FM Lavrov is set to visit Tehran on Monday. JMIC kept the Strait of Hormuz threat level at severe. US VP Vance said gasoline prices would be three times higher without the US Navy keeping oil and gas moving through Hormuz. Egypt's National Defence Council, chaired by President Sisi, pledged all forms of support to Saudi Arabia against Houthi attacks and reportedly approved deploying troops to the kingdom; Egypt's parliament is set to resume discussions on Monday. Six people were injured after a projectile fell in Saudi Arabia's Najran; civil defence issued alerts in Najran, As Sulayyil and Abha. An airstrike killed at least nine in Yemen's Houthi-held Saada province, AP reported. GCC Secretary General said Saudi security is integral to GCC security and called for Iran to be compelled to abide by international law. Israeli PM Netanyahu said the ultimate goal is to eliminate Hezbollah and that he does not trust the Lebanese government to disarm it. EU strongly condemned settler attacks in the West Bank, including on European diplomats, and urged Israel to halt settlement expansion; Rubio said the US wants Israel to do more to curb settler violence. Israel's government approved an ILS 2.6bln cut across ministries to boost the security budget, Channel 12 reported. Iran's Navy declared the Strait of Hormuz closed and said vessels must coordinate passage with its forces. IRGC said two oil tankers caught fire in the Strait of Hormuz after hitting mines. UKMTO said a southbound tug was struck by two unknown projectiles northeast of Khor Fakkan, UAE; it sustained damage and one minor casualty but continued on its route. UKMTO reported a tanker struck by an unknown projectile 68NM northeast of Saudi Arabia's Jubail on 16th October, with the crew safe and evacuated, and a tanker hit by an RPG fired from a small boat 78NM northeast of Jubail; it was unclear whether the two reports referred to the same incident. UKMTO said an LNG tanker was fired upon by a skiff 140NM southeast of Al Mukalla, Yemen, before its security team fired warning shots. US said it is awaiting Iran's response to a counterproposal to end the war, while CENTCOM said Iran-backed militias were sending funds back to the cash-strapped IRGC, Axios reported. A US commander said the naval blockade had stopped Iran exporting USD 25bln of oil and that the US helped freeze USD 350mln of Iranian crypto. US President Trump said the Iran war will be over very soon; Israeli PM Netanyahu said he remains aligned with Trump on Iran. An Iranian hardline newspaper called for strikes on Israeli nuclear sites if the US attacks Pickaxe Mountain, Iran International reported. Iran is providing the Houthis with intelligence and targeting data for attacks on Saudi Arabia, WSJ reported. Saudi-led coalition intercepted Houthi drones and ballistic missiles over Riyadh, the Eastern Province, the south and the Red Sea, including one targeting Yanbu; Houthi missiles struck Aden airport. Houthis have repeatedly struck Riyadh airport and Saudi Aramco headquarters, with 19 killed in Houthi strikes as Saudi Arabia struggles to counter the attacks, AP reported. Saudi-led coalition said it destroyed two ballistic missile launchers in Yemen's Saada; separately, a Saudi helicopter crashed in Najran due to a technical failure, killing two crew members. The Six Kings Slam and an EU summit in Saudi Arabia were postponed, while the US weighed direct involvement in Saudi-backed operations. UK advised against all but essential travel to Saudi Arabia. Egyptian President Sisi sought parliamentary backing to defend Saudi Arabia if asked, with parliament calling an emergency session for Sunday. Lebanon's President said a military delegation will present demands to halt Israeli escalation at trilateral talks in Tampa on 20th October, accused Israel of breaching the US-brokered framework and sought an extension of UNIFIL's mandate. Masked Israeli settlers attacked a convoy of European diplomats in the West Bank and beat a visiting French mayor; Rubio said he was disturbed by images of settler violence, Israel's Foreign Minister condemned the attack and Israeli PM Netanyahu's office decried a "smear campaign". Israel's general election is set for 27th October, with polls showing a tight race between Netanyahu's bloc and its rivals. A blast at an ammunition depot at a Popular Mobilization Forces HQ near Baghdad killed one and wounded four, according to security sources; the Iraqi government ordered an investigation. Two rockets were launched from the city of Tabriz in western Iran, Sabreen reported; two missiles were fired from Iran towards the Strait of Hormuz. Iran's Deputy Foreign Minister said Saudi Arabia has yet to respond to Iran's response on mediation efforts relating to Yemen. Iran's Foreign Ministry Spokesperson said Iran is ready to help peacefully resolve issues between Saudi Arabia and Yemen and has always been ready to use its best efforts to help resolve the conflict. Said Iran is still ready to use all its capacities for this purpose if requested by the parties, and reaffirmed its position that dialogue between Saudi Arabia and Yemen is necessary to resolve issues through diplomacy. US President Trump said Israel has been helpful to Saudi Arabia and the relationship with Saudi Arabia is great. Explosions were reportedly heard in southern Yemen, SNN reported. German Foreign Minister said food supplies are hanging in the balance due to Russia's warmongering in the Black Sea; added that Europe is in Iran's sights and will not tolerate Iran's hostile activities. In a meeting with the Prime Minister of Georgia, Iran's President said Iran is not seeking nuclear weapons and that destructive propaganda against Iran is a lie, Iran International reported. Added: "We have always been ready to talk. They think they can make us surrender, but we will not give in to force." Iran's Deputy Oil Minister said Iran will respond immediately and appropriately to US threats against energy facilities. Iran's Ambassador to Moscow Kazem Jalali said "The United States is not demonstrating serious political will to negotiate with Iran", TASS reported. Russia and Iran are discussing a gas pipeline route and pricing, TASS reported. Iran has reportedly managed to export some LPG and jet fuel since July, despite the blockade, and is exploring ways to get other shipments out. The IRGC Navy said a tanker struck a sea mine in the southern Strait of Hormuz, causing an explosion and fire in its engine room, after reportedly disabling its navigation systems and attempting to transit through an unauthorised route. The IRGC Navy also warned of severe action against vessels disabling their navigation and identification systems in the Strait of Hormuz and Persian Gulf, according to SNN. RUSSIA-UKRAINE US President Trump said on Truth Social that he is negotiating peace between Russia and Ukraine and that significant progress is being made, including on hostage talks, while he warned that signing a Russia-related document now could drive Moscow away from negotiations. Trump also criticised Ukrainian President Zelensky for targeting Russian diesel refineries, claiming the attacks are hurting global and US diesel markets, and accused Zelensky of not wanting to end the war. US President Trump signed an executive order waiving certain Graham Act sanctions, restrictions and duties on Russian energy revenues, certifying the move is in the US national interest. Rubio said Trump will take up to 60 days to weigh Russia sanctions and assess their economic impact; Trump said Russia will initially supply over 300k tonnes of diesel. Ukrainian President Zelensky said Trump is pushing Ukraine to capitulate to Russia, citing delayed Patriot deliveries, Starlink restrictions and eased sanctions, and offered to halt strikes on Russian refineries if the US sends more interceptors. US Treasury Secretary Bessent called Zelensky reckless for accusing the US of slowing Starshield and said the Russia waiver could be examined during the 60-day period. US Energy Secretary Wright said Trump had suspended enforcement of the Graham Act sanctions rather than ending them, and that Russian diesel exports would benefit US consumers. Ukrainian President Zelensky spoke with US envoys Witkoff and Kushner about a peace meeting, possibly as early as this week, and said US intelligence-sharing had resumed after a brief pause. Rubio said Ukraine had requested Starshield for deep strikes in Russia and that access is still under discussion. Ukraine launched more than 1,000 drones at Russia, including its biggest attack on St Petersburg since 2022, which set oil terminal and depot facilities ablaze; Russia said it downed 1,015 drones over 15 regions and Crimea, and the Kremlin said the attacks would not change its war aims. Ukrainian President Zelensky said Russia attacked Ukraine's energy sector 76 times in the week since Trump announced an "energy ceasefire". Ukraine regretted the possible Russian diversion of its drone over Lithuania, after Lithuania found likely drone debris that probably entered from Poland. Lithuania treated an attempted arson attack on Starlink equipment as Russia-linked sabotage targeting Ukraine's military capability. Italy's Defence Minister Crosetto said Ukraine could never win the war and called the US decision to limit Kyiv's access to satellite systems and intelligence a serious mistake. US Senator Schumer called the waiver a gift to Putin, while Senator Cruz called it a mistake; Rep. Meeks introduced a bill to block a Trump diesel deal with Putin. Russian Envoy Dmitriev hailed the waiver as historic, while Ukrainian President Zelensky said it rewarded Putin. Ukrainian President Zelensky said Ukraine's drone interceptors could not operate due to Starlink speed limits; US President Trump said neither he nor Musk was responsible, and Rubio said no one at the White House ordered the slowdown. Ukrainian President Zelensky said Ukraine-US negotiators could meet next week and a trilateral leaders' meeting could take place at the G20, and that Europe needs its own track for talks with Russia. Russia launched one of its largest attacks on Ukraine's energy sector, using 320+ drones and missiles against more than 15 energy sites, and hit Metinvest's Zaporizhstal steelworks with six ballistic missiles. Ukrainian President Zelensky warned that Russia may escalate strikes on western Ukraine and deploy ballistic systems in Belarus. Russia claimed the capture of Dobropillia and eight more settlements; Ukraine's General Staff denied that Dobropillia had fallen. Russian President Putin said Russia is building a 660km "security zone" inside Ukraine along the border which will not be subject to peace talks. Moscow's Mayor said nearly 200 Ukrainian drones heading for the city were destroyed, with Domodedovo and Vnukovo airports suspending flights; a Ukrainian drone attack was also reported in St Petersburg. Ukrainian President Zelensky asked Poland, Romania, Slovakia and Hungary to allow grain transit amid a Black Sea blockade; Hungarian PM Magyar said he would not object to transit. Lithuania issued a red air raid alert after detecting an unidentified flying object, closing Kaunas airport and scrambling NATO air police jets; Lithuania and Latvia later lifted their alerts. Poland's army investigated a possible airspace violation and searched south of Lublin for a crash site, though no violation was confirmed. Romanian F-16s shot down two drones over Romania's Black Sea waters, while Moldova condemned Russia after five drones crashed on its territory. US President Trump said he wants the Russia-Ukraine war ended; on Zelensky/Ukraine, said he will release details at some point and thinks it's good; added that he will get a deal on nuclear arms with Russia and China. European Council President Costa said Russia's actions point to escalation. Russian Ministry of Defence said Tu-22M3 long-range bombers flew over neutral waters of the Baltic Sea, escorted by foreign fighters, according to TASS. Ukrainian President Zelensky said Ukraine expects additional F-16s to arrive by the end of the year and is dependent on Starlink for intercepting Russian drones, adding that Starlink is not completely restored and Ukraine is not using it to strike inside Russia. Would like several negotiation tracks in the peace process and said Europe is taking steps on its own track. Said that if there is no energy ceasefire, the US should give Ukraine anti-ballistic missiles, and that Ukraine has asked the US for air defences if a diesel deal with Russia is in place. Hopes for Ukraine-US talks in the coming days; said Russia does not want talks in any format now. Called the diesel deal inappropriate and said he is sure a gas deal will follow. Kremlin said it is impossible to discuss a settlement without the current Ukrainian leadership. Russia's Ryazan oil refinery has halted operations at one of its primary units since the October 15th drone attack, according to reports citing sources. Russian Presidential Envoy and RDIF Head Dmitriev said they will discuss joint data centres with the US, including the use of Russian nuclear power stations. Russian Presidential Envoy Dmitriev said Russia and the US discussed the Arctic and LNG. Russia has reportedly doubled its attacks on Naftogaz facilities in 2026, sources said; Ukraine's 2026 gas consumption is seen falling by 1BCM after Russian strikes on business infrastructure. Ukraine proposed that the EU store up to 10BCM of European strategic gas reserves in Ukrainian underground storage facilities. Russian Deputy PM Novak said he sees no obstacles to direct diesel shipments from Russia to the US, adding that restrictions have been lifted, TASS reported; said Russian diesel refining capacity is twice the requirement and, even with repairs ongoing at damaged facilities, there will be enough for export. OTHERS US and China remained divided on Taiwan despite plans for more Trump-Xi meetings, Nikkei reported. North Korea said it successfully tested a new AI-guided high-speed torpedo on 15th October. US Defense Secretary Hegseth warned of China's historic military buildup. ASIA-PAC NOTABLE HEADLINES Japanese PM Takaichi's approval rating fell below 50%, the lowest since she took office, Kyodo reported. China's solar panel exports extended their slump in September, Reuters reported. Chinese President Xi called for coordinated planning of computing power, electricity and water supply. China's cabinet said it should strengthen risk analysis and assessment to firmly uphold the bottom line of AI safety, CCTV reported. NOTABLE APAC EQUITY HEADLINES NVIDIA (NVDA) asked suppliers to use TSMC's process for its next-generation HBM base dies; Samsung Electronics (005930 KS) is set to use TSMC (2330 TT) 3nm technology for the chips, a Seoul newspaper reported, according to Reuters. ICICI Bank (ICICIBC IN) Q2 standalone net profit rose 20.1% to INR 148.43bln, beating the INR 142.51bln estimate. HDFC Bank (HDFCB IN) Q2 net profit rose 4.7% to INR 195.1bln, narrowly missing the INR 195.26bln estimate as treasury income slumped. Axis Bank (AXSB IN) Q2 net profit rose 37.6% to INR 70.03bln but missed estimates on higher costs; NII rose 11.8% to INR 153.71bln. Mitsubishi Electric (6503 JT) is reportedly set to sell a 50% stake in its automotive equipment unit to Hon Hai (2317 TT). SoftBank Group (9984 JT) held talks to acquire US security services firm Allied Universal, FT reported. Yamato Holdings (9064 JT) unit Yamato Transport reported a data leak affecting 5.31mln customer records. Maharashtra's food regulator named executives of Reliance Industries (RIL IN) and Eternal (ETERNAL IN)-owned Blinkit in an expired-food probe and suspended five establishment licences. Citi said China AI supply-chain IPOs are holding firm despite a valuation pullback. Samsung Electronics (005930 KS) official said the company is considering M&A to strengthen its silicon photonics foundry capabilities, MTN reported. CXMT (688825 CH) preliminary January-September (CNY): Net Income 131-132.5bln; Chairman proposed buying back the company's A-shares worth CNY 1-2bln. EU/UK NOTABLE HEADLINES France's Saturday cost-of-living protests drew around 550,000 people, with some 1,800 arrested and more than 500 police, gendarmes and firefighters injured, according to the Interior Minister; one demonstrator died and Limoges' historic town hall was torched. Clashes, fires and looting hit Paris, Lyon and other cities, and President Macron and PM Lecornu said violence would not be tolerated. French President Macron ordered a review of police preparedness and intelligence, empowered prefects and mayors to ban gatherings, and asked the government to hold cost-of-living talks this week. US President Trump said France is burning, blamed immigration and urged France to close its borders. Clashes continued for a second day in Milan; Italian PM Meloni condemned the violence and called a government meeting for Monday. Cost-of-living and education protests also hit Milan, Bologna, Lisbon, Madrid and Brussels. Albanian PM Rama ruled out resigning as violent protests in Tirana entered a sixth day; the European Commission condemned the violence. Hungarian PM Magyar said he will present the 2027 budget to parliament on Monday, targeting public-sector savings and an EU-funded investment surge. Czech PM Babis' party failed to win any seats in the Senate election. Spain's hard-left parties failed to unite ahead of the 29th November election, hurting PM Sanchez's chances. A German minister sought a debt-brake exemption for Ukraine aid, backed by FM Wadephul but opposed by other CDU members. UK Chancellor Healey backed Heathrow expansion as a growth driver after PM Burnham declined to support it. European Council President Costa said the EU needs its long-term budget agreed by year-end. UK Chancellor Healey is reportedly considering whether to launch a new residency path similar to the former investor visa, Bloomberg reported. UK PM Burnham is reportedly set to announce plans on devolving decision-making powers towards the regions, rather than from both Westminster and Holyrood, The Guardian reported. Moody's is scheduled to update France's credit rating on 23rd October. Morningstar DBRS affirmed Italy at A (low), Stable Trend, and confirmed the EU at AAA. S&P affirmed the Netherlands at AAA/A-1+; Outlook Stable. Moody's assigned a Aaa rating to Luxembourg's digital bond. DATA RECAP European HICP Final (Sep MM) 0.6% vs. Exp. 0.6% (Prev. 0.4%). European HICP Final (Sep YY) 3.8% vs. Exp. 3.8% (Prev. 3.2%). European Core HICP Final (Sep YY) 2.5% vs. Exp. 2.5% (Prev. 2.4%). European HICP Final (Sep) 104.31 vs. Exp. 104.30 (Prev. 103.69). European Trade Balance (Aug) -16.1B (Prev. 10.7B). Italian Trade Balance (Aug) 1.773B vs. Exp. 7.5B (Prev. 8.240B). NOTABLE EUROPEAN EQUITY HEADLINES European Closes: Euro Stoxx 50 +0.57% at 6,204, DAX 40 +0.94% at 25,622, FTSE 100 +0.38% at 10,882, CAC 40 +0.28% at 7,957, FTSE MIB +0.93% at 49,857, IBEX 35 +0.82% at 19,336, PSI +1.01% at 9,468, SMI +0.34% at 14,399, AEX +0.91% at 1,143. Antofagasta (ANTO LN) reached a union deal to end the strike at its Centinela mine in Chile. Stellantis (STLAM IM) plans to hire hundreds of engineers as it adds new models, Bloomberg reported. DHL (DHL GY) Q3 2026 (EUR): Revenue 22.6bln (exp. 21.7bln). Raised FY26 guidance. Lufthansa (LHA GY) is reportedly exploring a sale of software assets in a EUR 1bln deal, FT reported. BASF (BAS GY) is reportedly prepared to discuss a higher offer for Evonik (EVK GY), WiWo reported citing sources. UK government is reportedly looking at a smaller-than-expected cut to Britain's EV sales target, in a move likely to disappoint domestic carmakers, FT reported. Shell (SHEL LN) agreed the sale of its French mobility unit to DCC Energy (DCC LN), Reuters reported citing sources. AXA (CS FP) is expected to lose its BMPS (BMPS IM) contract at expiry next year, Bloomberg reported. Rio Tinto (RIO LN) CEO said the company is looking to build commodity trading capabilities. LATAM NOTABLE HEADLINES Lula and Flavio Bolsonaro are set for their first debate a week before Brazil's 25th October runoff, with polls showing a close race. Brazil's Flavio Bolsonaro led Lula 46.8% to 45.9% ahead of the 25th October presidential runoff, according to a CNT/MDA poll; Bolsonaro pledged a BRL 200bln fiscal adjustment but ruled out social spending cuts. Brazil's Finance Minister Durian said CPI is under control but high rates are still a problem, and Brazil's interest rates need to come down. Mexico is set to approve USD 12.5bln of renewable power projects, Bloomberg reported. DATA RECAP Brazilian IBC-BR Economic Activity (Aug) 0.30% vs. Exp. 0.30% (Prev. -0.20%).