Top Overnight News A menu of options is starting to emerge around what a compromise might look like for extending a suite of Affordable Care Act tax credits, which have become a focal point in the current government funding standoff. Behind the scenes, however, Republicans on Capitol Hill and inside the Trump administration are discussing potential pathways to prevent the tax credits from expiring at the end of the year. Politico The Fed’s Beige Book gains importance as delayed jobs data leaves policymakers relying on other indicators to assess September’s labor market. BBG In its trade standoff with Washington, Beijing thinks it has found America’s Achilles’ heel: President Trump’s fixation on the stock market. Xi Jinping is betting that the U.S. economy can’t absorb a prolonged trade conflict with the world’s second-largest economy, according to people close to Beijing’s decision-making. WSJ China’s downward price pressures eased slightly in September, but not quite as much as expected, as Beijing ramps up efforts to curb excess capacity and bolster domestic demand. China’s inflation numbers for Aug are largely inline, w/the PPI at -2.3% (vs. the Street -2.3% and vs. -2.9% in Aug) and the CPI at -0.3% (vs. the Street -0.2% and vs. -0.4% in Aug). WSJ Japan’s legislature will hold an extraordinary session on Oct 21, although it’s not clear when exactly a vote to elect the next PM will take place. Nikkei Japan’s opposition leaders are to meet today to discuss uniting behind Yuichiro Tamaki as a PM candidate to challenge the LDP’s Sanae Takaichi. Rachel Reeves has told Sky News she is looking at both tax rises and spending cuts in the budget, in her first interview since being briefed on the scale of the fiscal black hole she faces. Budget is set to be published on Nov 26. Sky News The ECB’s Gabriel Makhlouf said he’s more worried that inflation will come in above the 2% target than below it. Interest rates are probably in a “fine position.” BBG ASML shares gained (+~415 bps) after orders crushed estimates, fueled by investment in AI infrastructure. It expects sales next year to be not below those of 2025. China was ASML’s biggest market last quarter, accounting for 42% of sales. BBG(zerohedge)