Top Overnight News

Saudi-backed Yemeni government forces staged a lightning advance on Monday to retake the coast around the Bab el-Mandeb Strait up to the city of Mocha, the government said, pushing the Iran-backed Houthis out of most of the areas they seized last month. RTRS

Trump signed an executive order easing restrictions on tax-exempt dyed diesel; Chevron's Wirth warned a US diesel export ban could push prices higher. On the crude front, the US blockade has bottled up at least 50 tankers carrying Iranian oil, UANI said. BBG

Saudi Arabia's East-West pipeline is back to 5.8m b/d, the energy minister said, after resuming operations 5-6 days after it was hit. BBG

A growing number of commercial real-estate buyers are threatening to walk away from recent transactions unless the seller offers better terms. Rapidly rising interest rates are to blame. Investors who agreed to a purchase price earlier this year when financing was cheaper are now demanding price cuts or other concessions before closing. WSJ

Far-right French presidential candidate Marine Le Pen proposed a sharp deficit reduction and called on the European Central Bank to intervene to bring down surging debt costs as she seeks to assure investors of her financial credentials ahead of the election next year. BBG

French Finance Minister Roland Lescure said the country is far from needing the European Central Bank to step in even as it wrestles with soaring bond yields. Lescure said circumstances are very different from a decade earlier during the debt crisis, and that France's signature is solid, but it's under pressure. BBG

The BoJ may signal this month that underlying inflation has roughly hit its 2% target, three sources familiar with its thinking said, highlighting ‌its readiness to raise interest rates again in the coming months. Any such announcement would largely be symbolic, but it would reinforce dominant market expectations of a December hike and signal the BOJ's readiness to keep raising interest rates in short intervals. RTRS

German manufacturing orders plummeted in August, pointing to increasing pressure on industrial demand as the conflict in the Middle East continues to keep energy costs elevated. WSJ

A sharp sell-off in US government bonds is starting to reverberate across corporate America, forcing companies to overhaul their borrowing plans and even raising the spectre of defaults among the most lowly rated businesses. Borrowing costs for companies with the lowest credit ratings hit their highest level since May 2020 this month at 17 per cent, driven by the rise in Treasury yields to multiyear highs and by investors demanding more compensation for lending to such businesses. FT

Nvidia is on the verge of becoming the first company with a $6 trillion market cap as investors rotate back into the chipmaker. BBG

OpenAI is in talks with multiple UAE investment funds to help anchor a $30 billion financing round; DeepSeek is set to raise at least $12 billion in a Tencent- and CATL-led round, and Moonshot AI closed at a ~$50 billion valuation. BBG

Google and Constellation Energy inked a deal for 890 MW of nuclear capacity as tech companies race to line up power for data centers. RTRS

AMD’s CEO said the company will substantially increase its chip supply in 2027 and predicted “very high” demand for the next few years

NY Fed has been visiting big banks to review their loans to private credit firms and understand their exposure, while officials have gone into JPMorgan (JPM), Wells Fargo (WFC), Barclays (BARC LN), and Morgan Stanley (MS) since the spring with questions about overall exposure and risk: Semafor.

Ray Dalio warned Treasuries are vulnerable to a pullback in demand from China and Japan; Bessent said the US can "very quickly" bend the debt curve. BBG

US Treasury Secretary Bessent said underlying, core inflation is down to around 2.3% and that interest rates are all a function of headline inflation, while he added that mortgage rates will come back down after the Iran conflict. Bessent said they inherited a big stack of debt and could start bending the debt curve very quickly, while he thinks they will see in excess of 3% growth for Q3 and noted the US economy is accelerating.

US Senators Warren (D) and Blumenthal (D) reportedly wrote to the Trump administration for answers on industry influence on the AI regulatory framework: Semafor.

Japan's 10-year bond sale saw firmer demand than the 12-month average; GPIF didn't discuss portfolio allocation at its September meeting. BBG(Historical earnings: For 2026Q2 (period ended 2026-06-30), Alphabet reported basic EPS of 14.41, diluted EPS of 14.24, net income of USD 174.771 billion, and revenue of USD 229.692 billion. In the prior-year period (2025-06-30), basic EPS was 5.16, diluted EPS was 5.12, net income was USD 62.736 billion, and revenue was USD 186.662 billion. For 2026Q1 (period ended 2026-03-31), basic EPS was 5.17, diluted EPS was 5.11, net income was USD 62.578 billion, and revenue was USD 109.896 billion. Consensus expectations: For 2026Q3 (event date 2026-10-27), consensus EPS estimate is 3.1255 and revenue estimate is USD 131.353 billion. For 2026Q4 (event date 2027-02-02), consensus EPS estimate is 3.4628 and revenue estimate is USD 146.133 billion.)