Top Overnight News All remaining Israeli hostages were released by Hamas. Israel is in the process of releasing almost 2,000 Palestinian prisoners. Donald Trump arrived in Israel and is to address the Knesset before traveling to Egypt for a deal-signing ceremony. The Israeli PM’s office said Benjamin Netanyahu won’t go to the Egypt summit. BBG The Trump administration signaled openness to a deal with China while also warning that recent export controls announced by Beijing were a major barrier to talks. BBG Trump said on Friday that layoffs will be Democrat-oriented and it will be a lot of people. Trump separately commented that he is using his authority to direct the defence secretary to use all available funds to get troops paid on October 15th, while he added they identified funds to do this and Secretary Hegseth will use them to pay troops. JD Vance told Fox News that the longer the shutdown goes on, the more significant permanent layoffs will be. Trump said he’s directing the Defense Department to use funds the administration has identified to deliver paychecks to US troops on Oct. 15. Vance responded that the ‘President is looking at all his options’ when asked if Trump is considering invoking the Insurrection Act. Furthermore, he said that the Justice Department is not acting on orders by President Trump to prosecute his political opponents. BBG The Pentagon is looking to buy as much as 1 billion of critical minerals to stockpile, the FT reported. China’s latest curbs on the export of batteries may have major impact on US companies, analysts say. BBG China’s exports rose at the fastest pace in six months in September, beating market expectations and underscoring the sector’s continued role as a key growth driver for the world’s second-largest economy. China exports +8.3% (vs. the Street +6.6%) and imports +7.4% (vs. the Street +1.8%). WSJ China’s auto sales growth accelerated in Sept vs. Aug (+6.6% Y/Y vs. +4.9% in Aug). RTRS Trump said he’d consider arming Ukraine with long-range Tomahawk missiles, but may first talk to Vladimir Putin in a bid to end the war. BBG Canada believes it is closing in on sectoral trade deals with the US, counting on Trump’s need for wins ahead of next year’s midterm elections. Melanie Joly, Canada’s minister of industry, said there was progress on landing trade deals, in particular for steel, which has been significantly hit by US tariffs. FT JPMorgan vowed to funnel 1.5 trillion into industries that bolster US economic security and resiliency over the next 10 years — an initiative that will invest billions of dollars in companies and hire bankers and other professionals. BBG Friday’s trade and tariff headlines fueled worries around a replay of April. The moves triggered heavy index-level hedging and record option volumes, even as cash equity trading remained relatively muted. S&P share volumes were only up +9% versus the 20-day moving average, while total U.S. options volume hit a new all-time high, eclipsing 100mm contracts for just the second time (April 4th was the other — when the market fell -5.97%). Friday’s felt more like a rush to protect than a rush to exit positions per Goldman New research suggested that the upcoming easing of capital rules could unlock USD 2.6tln in lending capacity for US banks and increase pressure on regulators elsewhere to follow suit, according to FT.(zerohedge)