Flash News

TREE NEWS update: Fujian province rolled out new rules broadening how housing provident fund balances can be withdrawn, adding property management fees and home-purchase deed tax as eligible uses. Depositors may now withdraw for property fees on their primary residence semi-annually or annually, and use fund balances to pay deed tax on home purchases. Repayment withdrawals were also loosened, allowing monthly or annual applications and removing extra documentation for out-of-province mortgages.

TREE NEWS reports: Foreign investors were net sellers of Japanese equities in the week to September 25, with net selling of ¥362.0 billion, Japanese flow data showed. The prior week’s reading was a net outflow of ¥1,522.8 billion, meaning the pace of foreign selling slowed sharply week on week.

TREE NEWS reports: Japan’s Q3 Tankan large manufacturers’ business sentiment index came in at 24, below the expected 25 but up from 22 in the previous quarter. The reading marks a further improvement in confidence among large manufacturers, though it fell short of forecasts.

TREE NEWS reports: The Federal Reserve’s preferred inflation gauge, core PCE, rose 3% year-on-year in August under a revised measurement methodology, coming in below expectations. US consumer spending that month grew at the fastest pace in over a year, while second-quarter real GDP was revised up to 2.2% annualized and September ADP private payrolls added 90,000 jobs, beating forecasts and ending three months of slowing.

TREE NEWS update: US Defense Secretary Pete Hegseth announced on September 30 the creation of an “Autonomous Warfare Command” to scale up the US military’s autonomous and robotic combat capabilities. Speaking at Marine Corps Base Quantico in Virginia, Hegseth said it will be a new four-star joint combatant command. Its remit will cover drones, artificial intelligence and command-and-control systems.

TREE NEWS update: Minneapolis Fed President Neel Kashkari said the Federal Reserve’s currency swap lines are a monetary policy implementation tool, and that he has not learned of any reconsideration of the swap facilities. The remarks address the status of the central bank liquidity backstops used to supply dollar funding to other central banks.

TREE NEWS update: Mainland Chinese A-share markets and Hong Kong are closed from Oct 1 to Oct 7, with the Stock Connect link shut. The session is heavy with data and central bank appearances: Japan’s September monetary policy meeting summary at 07:50 Beijing time, South Korean September exports at 08:00, euro-area, UK and US September manufacturing PMI finals through the day, and the US ISM manufacturing index at 22:00. ECB President Lagarde speaks at 21:30.

TREE NEWS update: Federal Reserve official Neel Kashkari said he is bullish on AI while also viewing it as tied to US inflation risk. The remarks tie the technology’s outlook to the central bank’s inflation concerns.

TREE NEWS update: TransUrban Group (TCL.AU) has agreed to acquire the Australian assets of Canada Pension Plan Investment Board for A$4.5 billion. The deal, announced by the Australian toll-road operator, covers CPPIB’s Australian holdings. No further terms were disclosed.

TREE NEWS reports: Novo Nordisk released real-world data on Wednesday showing patients who switched from obesity injections to its new oral Wegovy continued losing weight after three months. The analysis assesses association, not causation, but suggests the oral pill may not only sustain weight loss achieved on the blockbuster injections but improve on it. It also indicates patients may not need lifelong weekly injections of Wegovy or Zepbound.

TREE NEWS reports: Minneapolis Fed President Neel Kashkari said the disruptions caused by the Iran war are lasting longer than previously expected. Kashkari added that he has been slowly revising his own estimate of the neutral rate of interest. He gave no further details on the size or direction of that revision.

TREE NEWS reports: The 10-year US Treasury yield rose 4.87 basis points to 5.2849% on Wednesday, September 30, closing above 5.3% for the first time since the second quarter of 2007. The benchmark gained 53.49 basis points in September and 81.97 basis points over the third quarter, approaching its 2000 third-quarter peak of 6.1820%. The two-year yield rose 1.05 basis points to 4.8870%, up 54.54 basis points in September and 71.47 basis points over the quarter.

TREE NEWS update: US Interior Secretary Doug Burgum said that if Europe releases its refined fuel reserves — diesel in particular — it could push diesel prices lower. A voluntary release of European diesel stockpiles would help the US market, Burgum said. He did not give a timeframe or volume for any potential release.

TREE NEWS update: Eli Lilly reported Phase 3 ACHIEVE-4 results showing Foundayo (orforglipron) met its primary endpoint of cardiovascular non-inferiority versus insulin glargine in adults with type 2 diabetes. MACE-4 risk fell 16% versus glargine, with prespecified analyses showing 53% lower cardiovascular death risk and 57% lower all-cause death risk. At 52 weeks, Foundayo reduced A1C by 1.6% and weight by 8.8%, while the glargine group gained 1.7% body weight.

TREE NEWS update: Paramount Skydance sold $30 billion of US dollar investment-grade bonds, completing the largest portion of the financing for its acquisition of Warner Bros. Discovery. The eight-part sale priced at tighter spreads than initially discussed, with the longest tranche, maturing in 2066, narrowing about 0.35 percentage points to a premium of 3.3 percentage points over Treasuries.

TREE NEWS reports: CCC-rated corporate debt has fallen into distress for the first time since the 2023 US banking crisis. The lowest-rated tier of the high-yield credit market is now showing strain, marking the first such episode since the regional-bank failures of that year.

TREE NEWS update: Paramount Skydance said David Ellison will lead the merged company alongside former Mattel CEO Ynon Kreiz as co-CEO once the pending acquisition of Warner Bros. Discovery closes. A California federal judge approved a settlement resolving a lawsuit brought by 12 state attorneys general opposing the merger, clearing the way for completion. The deal places two major film studios, streaming platforms, TV networks and news outlets under one ownership.

TREE NEWS reports: The euro fell 0.14% to 1.1324 against the dollar in late New York trading on Sept 30, ending September down 2.54% and the third quarter down 0.87%. The dollar rose 3.45% against the Swiss franc in September, while sterling slipped 2.16% on the month. The Turkish lira lost 5.06% over the quarter, extending its slide since late 2021.

TREE NEWS reports: Brazilian iron-ore miner Vale is considering its first onshore bond sale in China, aiming to raise up to 3.5 billion yuan, people familiar with the matter said. The company plans a roadshow in the week of Oct. 19 and could start marketing the three-, five- or 10-year notes as early as November. The panda bonds would be issued by Vale Overseas Limited with a parent guarantee.

TREE NEWS reports: All but two of the S&P 500’s 11 sectors closed lower, with consumer staples, health care, industrials, real estate and financials falling between 1.19% and 1.68%. Telecom and energy slipped at most 0.04%, while consumer discretionary rose 0.13% and information technology gained 0.61%.