Weekend Buzz: October 4-5

Hamas Agrees to Some, but Not All, of Trump's Ceasefire Plan

Hamas agreed to immediate negotiations on the release of all remaining Israeli hostages held in Gaza and on relinquishing administrative control over the enclave to an independent body, but the group stopped short of fully accepting US President Donald Trump's 20-point ceasefire plan. Hamas said further talks are needed on several key points and made no mention of disarming, as required under the plan. Under the proposal, already accepted by Israel, fighting would end and hostages, both dead and alive, would be returned to Israel in exchange for the release of Gazans detained in Israeli prisons. Only 20 of 48 hostages remaining in Gaza are believed to still be alive. The plan also says that full humanitarian aid to Gaza would be restored.

Trump said on his social media site that he believes the statement from Hamas signals it is ready for "lasting peace" and told Israel to immediately stop its bombing of Gaza. There was no immediate response from Israel.

Munich Airport Menaced by Unidentified Drones

Munich Airport's operations were suspended or altered twice on Friday after unexplained drones were spotted. It was the latest in a recent series of drone incursions over the skies of NATO members in Europe. Last month, airports in Denmark and Norway were affected by drones, unmanned aerial vehicles penetrated the airspace of Poland and Romania, and a Russian fighter jet flew in the skies above Estonia. Ukrainian President Volodymyr Zelensky stepped up his warnings that the Kremlin's aim is to "break the West and Europe." EU leaders meeting in Copenhagen this week agreed to beef up aerial defenses

Russian President Vladimir Putin said on Thursday that Moscow has no plans to invade NATO nations and accused the EU of "whipping up hysteria" about a Russian threat. However, Putin also said that any decision by the US to supply Ukraine with Tomahawk long-range missiles, which has been hinted in Washington, would lead to a "whole new level of escalation."

Strong Tropical Storm Threatens Southern China Coast

Tropical Storm Matmo is forecast to strengthen into a typhoon before it makes landfall near the China-Vietnam border, the Hong Kong Observatory said. China's Central Meteorological Administration issued a yellow alert. The storm comes in the wake of a super typhoon that hit Hong Kong and the southern mainland last week. Ahead of the latest storm, rail services on the island province of Hainan were suspended.

First Woman, Youngest Man Vie to Become Japanese Prime Minister

Japan's ruling Liberal Democratic Party meets on Saturday to select a new leader, with conservative Sanae Takaichi emerging as a contender to replace Shigeru Ishiba, who resigned after the party a lost its majority in both house of parliament. Takaichi, if selected, would become Japan's first woman prime minister. Among other talked-about candidates is Sinjiro Koizumi, who could become the youngest-ever prime minister at age 44. The party, which has ruled Japan without break in the postwar period, has been losing its grip on power amid a rise in rightist parties.

Top Business

Foreign Funds Return to China Equities

Chinese stock markets in September attracted US$4.6 billion in foreign fund investment, the largest monthly inflow of the year, according to US investment bank Morgan Stanley. Investment was strongest in semiconductor-related stocks, reflecting confidence in Beijing's drive for technology self-sufficiency and global supply chain realignment. Chinese markets have been in a bull run for months, with the benchmark Shanghai index hitting 10-year highs.

Hitachi, OpenAI Sign Deal on AI and Data Centers

Shares of Japanese conglomerate Hitachi surged 10 percent on Friday after the company announced a partnership with OpenAI, US creator of Chat GPT, on AI infrastructure and data centers around the world. Under the agreement, Hitachi will provide OpenAI data centers with cooling and power distribution systems. The pair will also work together on applying OpenAI's large language model to Hitachi's digital support business.

China Completes Assembly of Massive Offshore Wind Power Project

China has completed construction of the world's largest single-unit floating offshore wind power system, Science and Technology Daily reported. The 16-megawatt system will be towed to waters off the coast of Guangxi Zhuang Autonomous Region in southeastern China to begin operation. Its turbine rotors have a diameter of 250 meters. The power project, led by China Three Gorges Corp, has an installed annual capacity of 45 million kilowatt-hours.

Egypt, China Partner on Sustainable Agriculture Research

Egyptian and Chinese research institutions have formalized a new partnership aiming to bolster scientific collaboration on sustainable farming. The protocol was signed this week by Egypt's Desert Research Center, the Wuhan Botanical Garden of the Chinese Academy of Sciences, and the Sino-Africa Joint Research Center.

Economy & Markets

China, India to Resume Direct Flights This Month

India and China will restart direct flights this month after a five-year hiatus. The resumption was agreed when Indian Prime Minister Narendra Modi visit Beijing in early September amid warming bilateral ties between the world's two most populous nations after earlier border disputes strained relations. China is India's largest trading partner.

Chinese Regulator Orders S&P Ratings to Clean Up China Operations

The Chinese Securities Regulator Commission said the mainland operations of Standard & Poor's ratings service must strengthen its quality controls and improve disclosure of its business operations, Reuters reporting, citing a letter posted on the commission's website. S&P was ordered to rectify the problems, not specified in detail, within a set timeframe. Analysts said the Chinese government has been tightening oversight of the ratings industry to curb inflated credit ratings.

US Jobs Report Delayed by Government Shutdown

The monthly jobs report due out Friday from the US Department of Labor was put on hold by the current shutdown of the government as a Congressional deadlock over new funding continues. The data normally form a part of US Federal Reserve decisions on interest rates. Labor Department employees are among the federal workforce furloughed by the shutdown that began on October 1.

Deep Dive

Self-indulgence Fuels New Trend in Spending

No longer guilty pleasures, the search for emotional gratification spans beauty, health and tourism sectors.

In dog-eat-dog Chinese markets, runaway competition is being muzzled by regulators. The crackdown appears to be working

From solar panels to food delivery and electric cars, price wars have fueled a race to the bottom, with harmful repercussions for the economy.

Embracing new chip technology that's a 'digital alter ego' for mobile phones

Integrated circuits combining functions on a single microchip open new vistas for mobile games, phone cameras, voice assistance, user privacy and power savings.

Corporate

Vanke to Sell Jilin Ski Resort to China Travel International Unit

Debt-laden Chinese property developer Vanke said plans to sell a ski resort in the northeastern province of Jilin to China Travel International Investment for 295 million yuan (US$41 million), Forbes reported, citing a filing with the Hong Kong stock exchange this week. Vanke owns Jilin Songhua Lake International Resorts, operator of the popular ski resort. The ski industry has taken off in China since the 2022 Winter Olympics in Beijing, with skier numbers in the most recent season rising 13 percent from a year earlier to 26 million.

Bubble Tea Maker Mixue Ventures Into Beer Market

Chinese bubble tea maker Mixue Group is expanding into beer sales by acquiring a 51 stake in Zhengzhou-based local brew chain Fulujia Enterprise Management for 286 million yuan (US$20 million). It will buy an additional 2 percent stake from a third party for 11 million yuan. Fulujia product line includes innovations like tea beer and milk beer. The brand operates 1,200 outlets on the mainland.

Cheaper Facial Filler Signals Possible Price War

So Young, a Chinese medical aesthetics platform, launched a facial filler product co-developed with Xihong Biopharma and carrying a "cheapest-ever" retail price of 2,999 yuan (US$421). The product undercuts the going rate of more than 10,000 yuan for such collagen-stimulating injections, which have become popular in China. Dermal filler injections smooth wrinkles and restore sagging skin. Nine such projects have already been approved for use in a market expected to reach 11.5 billion yuan in value by 2027.