Squawk Box Europe Express

A stalemate in talks between Democrat and GOP lawmakers over a multi-trillion dollar stimulus package helps end a week-long rally for the Dow Jones and S&P 500, outweighing optimism over a Covid-19 vaccine. This, as Russia announces it has granted approval for its Sputnik V drug. Presidential candidate Joe Biden chooses Kamala Harris as his running mate – the first black woman to be chosen on...

Asian markets rally, following U.S. stocks into the green with the Hang Seng and Nikkei leading the pack. Investors opt out of the tech sector and move towards cyclical stocks. U.S. lawmakers remain divided over the virus relief package, but Treasury Secretary Steven Mnuchin tells CNBC that President Trump’s strategy will yield results in reviving the economy. In Lebanon, the government resigns fo...

President Trump signs executive orders to extend unemployment assistance after virus stimulus plans collapse between Republican and Democrat lawmakers. Twitter has reportedly made a move for Chinese video app TikTok, which is seeking to sue the Trump administration over the U.S. ban. In Lebanon, Prime Minister Hassan Diab says he will request an early election in a bid to quell ongoing protes...

Asian indices slump into the red after President Trump signs an executive order banning U.S. companies from working with Chinese apps TikTok and WeChat. Trump has branded both mobile applications as a “threat” to U.S. national security and economy. Mixed Chinese trade data for July sees exports rising by 7 per cent, but imports fall by 1.4 per cent due to depressed demand. Uber’s Q2 revenues fall...

U.S. markets close higher, shrugging off dismal ADP jobs numbers as Democrats continue their opposition to proposals in a fresh virus stimulus package. U.S. airlines shares respond to the upside following GOP Senators’ backing of a $25bn aid package for the industry. Bosses of the largest carriers warn that demand will take years to rebound. Siemens makes changes to its managing board as it beats...

A massive chemical explosion in Beirut leaves more than a hundred dead and thousands wounded. President Trump suggests the blast may have been intentional. Chinese service sector growth retreats from a decade-high, as new localised lockdowns blunt the country’s post-pandemic recovery. In media news, shares in Disney rally despite a poor Q2, as investors pin hopes on a new streaming strategy potent...

A 3-way deal? President Trump says the U.S. Treasury should receive a significant cut of Microsoft’s bid for Chinese social media app TikTok, as he says the companies have until 15 September to reach an agreement. U.S. major averages start August in the green with the Nasdaq hitting another record high. Google parent Alphabet issues a record $10bn in corporate debt at a rock-bottom coupon price. A...

Provisions eat into profit at HSBC after first half earnings miss forecasts, falling 65 percent as the bank sets aside more capital and warns of ongoing risks for the year ahead. French bank SocGen reports a €1.2 billion loss in the second quarter as the lender takes an impairment charge on its global markets business. President Trump reportedly gives China’s ByteDance 45 days to sell TikTok to Mi...

Technology giants lead the way on Wall Street with Apple, Alphabet, Facebook and Amazon adding $200bn to their combined value in after-hours trading. Apple posts the biggest quarterly revenue jump in its history. Facebook records its slowest-ever sales growth but still beats forecasts through double-digit advertising revenues, shrugging off a recent corporate boycott. Lockdowns around the world ha...

Credit Suisse leads a slew of European earnings, reporting a 24 per cent increase in second quarter profit as CEO Thomas Gottstein announces a merger of the global markets and investment banking divisions. Standard Chartered reports a 25 per cent drop in first-half profits and warns it is bracing for a fresh wave of Covid-19 challenges. Revenues at Airbus fall 55 per cent as losses total €1.6bn fo...

Deutsche Bank posts a second quarter loss of €77m despite investment bank revenues rising 46 per cent, as cost-cutting measures weighed on the bottom line. Santander reports a record second-quarter loss of €11bn amid a slew of write-downs. French luxury group Kering sees sales fall by 44 per cent in Q2 and abandons its guidance, saying it does not predict a rebound in the second-half. However, the...

Republican lawmakers announce they have agreed on a $1tn virus stimulus bill with Senate majority leader Mitch McConnell saying the U.S. “has one foot in the pandemic, one foot in the recovery”. Market uncertainty keeps gold at record highs but just shy of the $2,000/oz. price. Spanish Prime Minister Pedro Sanchez slams the UK government’s blanket quarantine decision as ‘not justified’. Londo...

Second wave caution… The UK sparks travel chaos with an overnight decision to reinstate quarantine measures against travellers from Spain. Madrid, airlines and travel operators hit out at the move. Gold hits a record high on the back of heightened U.S.-China tensions as authorities take over Washington’s consulate in the south-western city of Chengdu. In the U.S., Republican lawmakers reporte...

Intel shares nosedive in after-hours trading as the U.S. chip maker issues disappointing Q3 guidance and postpones the launch of its next generation product. The S&P 500 breaks a four-day winning streak as big tech stocks sell off. Apple shares weigh particularly heavily as the Iphone maker faces an investigation into potential breaches of consumer protection laws. In Washington, the virus sti...

Big tech dominates overnight trade…Microsoft shares tumble in after-hours trading as investors ignore the forecast-beating Q2 numbers and focus on the slowing growth of the software giant’s Azure unit, as the cloud business sees revenue growth dip below 50 per cent. Tesla posts a profit for the fourth consecutive quarter, countering factory shutdowns during lockdown with strong orders and cost cut...

A change in tone…President Trump warns that the Coronavirus outbreak will get worse before getting better as the U.S. logs more than 1,000 daily deaths for the first time in more than a month. U.S. stocks dip on the warning, taking down the Nasdaq as well after it hit another record high while precious metals rally with gold reaching a peak not seen since 2011. On a visit to the UK, U.S. Secretary...

Breakthrough in Brussels …EU leaders finally agree on a €750bn record virus recovery plan and a budget for the bloc after marathon five-day negotiations. The so-called ‘Frugal Four’ were swayed by increased rebates and a lowered €390bn in grants for the hardest-hit countries. Swiss lender UBS posts a higher-than-expected Q2 net profit, despite taking a hit in corporate and consumer lending. The ba...

Deadlock in Brussels…EU leaders fail to agree on the bloc’s virus recovery fund following three days of negotiations. The so-called ‘Frugal Four’ nations are insisting that grants handed to the worst affected countries should be reduced. The lack of resolve tempers broader Asian gains but the Shanghai Composite manages to move 2 per cent higher, as the Chinese central bank keeps its lending rate s...

The Last Dance for growth… Netflix shares dive in extended trade despite the streaming giant adding more than 10m new subscribers in Q2. However, it warned growth would slow down to its weakest level in years as lockdown restrictions are eased. Moscow rejects U.S., UK and Canadian claims that a Russian hacker group has launched a comprehensive cyber-attack in an attempt to steal Covid-19 vacc...

Bouncing back…Chinese GDP rises by 3.2 per cent from the first quarter, topping expectations. However, Asian equities remain in the red. Dozens of high-profile Twitter users’ accounts are hacked in a digital currency scam causing the platform’s shares to sink more than 3 per cent in extended trades. In energy news, Opec + agrees to unwind its record output cuts in supply. Resulting declines are te...

Vaccine hopes. US. futures rally after a study shows Moderna’s COVID drug produces antibodies, with the biotech company saying all 45 participating people showed a “robust immune response” in the latest trial. The overnight market gains come after underperforming cyclicals and oil stocks lead U.S. averages higher, while big tech lags for a change. The biggest U.S. banks report earnings for the sec...

Wild swings on Wall Street… The Nasdaq closes sharply lower despite earlier positivity around approval of Pfizer and Biontech's 'fast-track' vaccine candidate. JPMorgan, Citi and Wells Fargo kick off earnings season amid concerns that banks will have to set aside more money to weather the virus crisis. In China, June imports and exports surprise to the upside with the economy reaping the bene...

Risk-on appetite continues despite another record increase in global Coronavirus infections. U.S. case numbers alone rise to 3.3mn. The White House announces it will levy 25 per cent tariffs on French cosmetics and accessories if it fails to back down on its digital tax plan, but gives Paris 180 days to change its stance. In energy news, oil prices are under pressure on news that Opec+ could rever...

Wall street divergence... The Nasdaq hits another record high as investors continue to bet on big tech stocks. The Dow and the S&P 500, however, slip into the red following a volatile session. The U.S. government sanctions top-ranking Chinese officials over allegations of human rights abuses against Uighur Muslims sending Chinese stocks lower, while Chinese banks brace for more restrictions fr...

Back into the green … the Nasdaq leads U.S. indices with a new record close as Apple hits an all-time high along with other big tech sector gains. In Europe, SAP enjoys a cloud boost as software licensing falls by 18 per cent and the German tech giant also confirms its full-year guidance. Airbus deliveries recover in May but H1 sales still hit a 16-year low - this amid a stand-off with unions over...