Squawk Box Europe Express

Moody’s lowers its US outlook but maintains its AAA rating amid looming political turmoil as new House Speaker Mike Johnson works to avert a government shutdown. Asian equities search for direction and U.S. futures are in the red after the Nasdaq posts its best daily performance since May. Danish pharma giant Novo Nordisk publishes positive results from its cardiovascular trials as its attempts to...

U.S. Federal Reserve Chairman Jerome Powell remains hawkish about the prospect of further rate cuts and has warned of being complacent following several months of positive data Stateside. His comments, along with a poor 30-year bond auction broke the Wall Street rally and pushed Treasury yields higher. In Spain, the PSOE strikes an amnesty deal with Catalan separatists, paving the way for Pedro Sa...

China’s economy falls back to consumer price deflation territory with factory gate prices decreasing for the 13th consecutive month. Disney posts a Q3 bottom-line beat and cuts costs by a further $2bn. Boasting subscriber numbers of 150m, CEO Bob Iger tells CNBC that the business is now on its way to recovery. Chip maker ARM sees shares fall by almost 7 per cent in extended trade, posting wea...

Wall Street notches its eighth consecutive session in the green – the longest winning streak in two years. Fed Governor Michelle Bowman is pushing for a further hike as her colleague Christopher Waller calls recent GDP data as a ‘blowout quarter’. Chicago Fed President Austan Goolsbee tells our colleagues Stateside that a ‘golden path’ to a soft landing remains a possibility. Crude slips to three-...

UBS posts a higher-than-expected Q3 loss, however the incorporated Credit Suisse wealth management unit enjoys net new money turning positive for the first time in 18 months. The Nasdaq finishes in the green for a seventh consecutive session but Asian equities fail to follow suit. Chinese trade data is out for October with exports falling for a sixth straight month but imports beat forecasts to gr...

Wall Street enjoys its best week of the year and the Nikkei responds by hitting a one-month high. The risk-on sentiment was fuelled by a softer-than-expected U.S. jobs data but Richmond Fed President Thomas Barkin tells CNBC that there are still no rate cuts to come in the near-future. Berkshire Hathaway posts a 40 per cent jump in operating earnings as Warren Buffett buys up short-term Treasury b...

Sam Bankman-Fried is found guilty on all seven counts of criminal fraud, conspiracy and money laundering. The FTX founder now faces more than 100 years behind bars. A disappointing forecast for Christmas retail weighs on Apple in extended trade even as the company posts a beat on Q4 earnings. All three U.S. majors are on track for their strongest week of the year with non-farm payroll numbers due...

The U.S. Federal Reserve keeps rates on hold claiming progress in the fight against inflation but Chairman Jerome Powell does not rule out further hikes as the U.S. economy remains robust. Investors, however, bet that the Fed is finished in its hiking cycle, pushing Wall Street into the green and U.S. yields drop with the Treasury decreasing the pace of longer-dated bond issuance. But investors St...

Wall Street ends a tough October in the green as investors bank on another Federal Reserve rate pause. The U.S. Treasury is due to announce its quarterly refunding process with the 10-year yield hitting a 16-year high. The private Caixin survey shows Chinese manufacturing slip into contraction territory in October, further highlighting the challenges facing Beijing’s stimulus programme. Corporate...

The Bank of Japan revises its upper limit on the 10-year JGB yield as a loose reference rather than a strict cap with the yield now hitting its highest level in almost a decade. On Wall Street, the S&P 500 enjoys its best day since August exiting correction territory but all three major U.S. indices are set to close October in the red – their first three-month losing streak since March 2020. I...

HSBC launches a new $3bn share buy-back programme after posting Q3 profits of $7.7bn. The S&P 500 closed last week in correction territory, All three major U.S. indices are set for their third consecutive week in the red. Investors now await rate decisions from the Fed, BoJ and the BoE. Israel expands military manoeuvres in northern Gaza while thousands break in to a UN aid warehouse. In autos...

The Nasdaq falls further into correction territory as poor tech results and rising Treasury yields dampens sentiment in the sector. Meanwhile the U.S. economy has grown at its fastest pace in two years. Amazon boasts soaring advertising sales with profits almost tripling for the quarter. Shares are up by 5 per cent in after-hours trade. In China, policy support aids profits in some of the country’...

U.S. markets are in the red with the Nasdaq suffering its worst one-day drop since February and the S&P 500 falling below the 4,200-point mark. Meta beats Q3 expectations but the result is overshadowed by an uncertain revenue outlook for the social media giant. Asia-focused lender Standard Chartered misses Q3 pre-tax profit expectations by 2 per cent and is hit with $294m of credit impairment...

Tech earnings kick off in the U.S. with Alphabet posting a beat across the board but missing expectations on cloud revenue which has plunged shares down by 6 per cent in after-hours trade. Microsoft, however, see shares rise by 4 per cent after its own cloud unit saw quarterly sales rise by 19 per cent compared to last year. We have earnings in Europe where Deutsche Bank hikes its capital outlook...

Billionaire investor Bill Ackman withdraws his short position while bond king Bill Gross snaps up short-dated interest rate futures in a sign the pair are concerned about the health of the U.S. economy. Hamas releases two elderly hostages as French President Emmanuel Macron jets into Tel Aviv in a bid to contain the conflict. In oil news, Chevron swoops for Hess in a $53bn all-share mega-deal. Che...

Humanitarian aid enters Gaza amid ongoing Israeli airstrikes as the war with Hamas enters its third week. Speaking exclusively to our colleagues at Sky News, Israeli President Isaac Herzog has said his nation has the right to defend itself. Asian stocks fall for a fourth consecutive day as the global bond sell-off continues. Several Fed officials have hinted that the central bank may be close to e...

U.S. Federal Reserve Chairman Jerome Powell has dismissed criticism that the current rate policy is too tight and that recent signs of cooling are still not enough to convince that inflation is falling sustainably towards the central bank’s goal. Wall Street was pushed into the red after the 10-year Treasury yield breached the key 5 per cent mark. It is at its highest level in 16 years. U.S. Presi...

Price cuts and margin pressures have sent Tesla shares down 4 per cent in after-hours trade following a profit drop of 44 per cent for the quarter. CEO Elon Musk has warned of a challenging outlook. Netflix, however, sees shares soaring by 13 per cent on increased subscriber figures. Co-CEO Greg Peters hails the advertising business at the streaming giant. Asian indices are down after the U.S. 10-...

Chinese GDP in the third quarter beats expectations growing 4.9%, raising hopes that Beijing can still manage to attain its full year growth target. In the U.S., the 2-year Treasury yield hits a 17-year high on better-than-expected consumer numbers. However, BofA CEO Brian Moynihan tells our colleagues stateside that he believes consumer activity is still being hampered by high interest rates. Hun...

U.S. President Joe Biden confirms he will visit Israel on Wednesday while Secretary of State Antony Blinken has stressed the need for aid to reach the Gaza Strip where the humanitarian crisis is worsening. Optimism over corporate earnings help push the Dow to its best session for a month ahead of earnings from Goldman Sachs and BofA later today. Chinese property giant Country Garden could default...

President Biden warns the Israel-Hamas war could escalate into a wider regional conflict and cautions Jerusalem against re-occupying the Gaza Strip. The S&P 500 posts its second week in the green while geo-political tensions sees Brent move back up past $90 per barrel. Kicking off Q3 earnings season, U.S. banking giants JP Morgan, Citi and Wells Fargo all beat on top and bottom lines. Asset ma...

U.S. markets end a four-day streak in the green, dragging Asian equities lower as a result as stronger-than-expected inflation re-ignites concerns that rates will remain elevated for longer. Debt distress was a focus at the IMF/World Bank Meetings in Marrakech yesterday. World Bank President Ajay Banga tells a CNBC panel that trying to predict interest rates is ‘soothsaying, future-telling’. Septe...

September’s FOMC minutes show officials grappling with volatility which highlights uncertainty for the U.S. economy. We hear from Bundesbank president Joachim Nagel who insists Germany is not the ‘sick man of Europe’, making a sharp distinction between its current economic situation and the early 2000s. All three U.S. indices post their fourth straight day of gains ahead of today’s crucial inflati...

Asian markets hit a two-week high on the back of the largest drop by the U.S. 10-year Treasury yield since mid-July. We are live at the IMF meetings in Marrakech where ECB Governing Council board member Robert Holzmann tells us that any additional economic shocks could prompt one or two more interest rate increases. Israeli armed forces are launching a ground offensive into the Gaza Strip with the...

Global equities stage a turnaround as investors brush off concerns in the Middle East, while U.S. bond yields slide after dovish Fed comments fuel speculation the tightening cycle is close to done. Meanwhile, Hamas threatens to kill hostages as Israel orders a complete siege of the Gaza Strip, with Prime Minister Benjamin Netanyahu vowing the campaign is “just getting started”. International conde...