Squawk Box Europe Express

U.S. non-farm payrolls surprise to the upside which help to ease recession fears but also bump up Treasury yields as investors anticipate further Fed rate hikes. Chinese exports see faster-than-expected growth in July but imports suffer due to Beijing’s strict zero-Covid policies. The recent political upheaval in Italy has prompted ratings agency Moody’s to cut the country’s outlook to negative ah...

Investors await key non-farm payrolls jobs report. Cleveland Federal Reserve President Loretta Mester has reiterated the central bank’s resolve to rein in inflation via rate hikes. On this side of the pond, the BoE hikes rates by 50 bps – the largest move it has made in 27 years. Governor Andrew Bailey says the UK is likely to fall into recession in the fourth quarter with inflation topping 13 per...

U.S. markets rally and yields retreat as better-than-expected services data prompt investors to ignore recession concerns. This, as Fed officials continue to push to curb inflation. We hear from St Louis Federal Reserve President James Bullard who favours front-loading and shrugs off talk of a U.S. recession. We are live at the Bank of England where the MPC considers raising rates for the sixth co...

Wall Street closes in the red for a second day running and Treasury yields rise following hawkish comments from San Francisco Fed President Mary Daly, who says that the battle to rein in U.S. inflation is far from over. Tensions are high in East Asia after U.S. House Speaker Nancy Pelosi touches down in Taipei to pledge close support for Taiwan, irking the CCP administration. Pelosi is the highest...

Asian markets slide on geo-political and recession concerns. WTI falls to below $93. The RBA hikes interest rates by 50bps but the Australian dollar falls on the news. The central bank says that inflation Down Under is yet to peak. Beijing warns that it will react if it believes its sovereignty is threatened ahead of U.S. House Speaker Nancy Pelosi’s proposed visit to Taiwan. Social media company...

U.S. stocks rebound from a tough first half in July, shrugging off inflationary concerns to notch their best monthly performance in more than two years. HSBC reports a 15% drop in first half profit as Europe's biggest bank wrestles with rising credit losses. Demand weakness and Covid curbs hit China's manufacturing sector as factory activity shrinks in July, and EU member states prepare to tighten...

U.S. markets are in the green despite the U.S. economy posting a second consecutive negative quarter. The Biden administration, however, refuses to acknowledge the economy has tipped into recession. In tech news, Apple posts record Q3 revenues with iPhone demand remaining steady despite macro headwinds. Amazon’s AWS unit helps the e-commerce giant to a quarterly revenue beat. Meanwhile, rising int...

The U.S. Federal Reserve raises rates by a further 75bps but does not elaborate on forward guidance. Chairman Jerome Powell says the path to that end may “narrow further” but that the U.S. is not in a recession. Equities Stateside rally as downturn fears recede slightly on his comments. Facebook parent Meta posts its first-ever quarterly decline with CEO Mark Zuckerberg citing softer digital...

In tech news, Google parent company Alphabet sees revenue growth hit a two-year low following uncertainty about its ad spending business. Microsoft posts a miss on its top and bottom line but investors are buoyed by the company’s positive forecast. The IMF says the global economy is on the cusp of recession. We hear from the fund’s Head of Monetary and Capital Markets department, Tobias Adrian. Pl...

UBS posts a Q2 net profit of $2.1bn but challenges persist as it records $12bn in outflows from its asset management business. Russian gas firm Gazprom has cuts European gas supplies by half, citing maintenance issues. In retail news, Walmart issues its second profit warning in 10 weeks and moves to cut its FY guidance. We’re awaiting a slew of U.S. earnings ahead of an expected rate hike by the F...

Social media stocks see a sell-off following Snap’s poor Q2 earnings. U.S. Treasury Secretary Janet Yellen, however, continues to downplay recession fears. In auto news, Volkswagen CEO Herbert Diess is pushed out of the position as a supervisory board seeks to replace him with Porsche CEO Oliver Blume. Uniper shares are down by almost a third following the German government’s agreement to buy a 30...

The ECB raises rates by 50bps – the central bank’s first hike in 11 years, which finally lifts the benchmark rate from negative territory. Italy is once again plunged into political turmoil and faces a snap election, possibly in late September, after the coalition government led by Prime Minister Mario Draghi collapses. President Sergio Mattarella is forced to accept Draghi’s resignation and disso...

The ECB is set for a historic interest rate hike – its first in 11 years – and there is speculation it could be as much as 50bps. We are live in Rome where Prime Minister Mario Draghi is expected to resign following yesterday’s failed call for parliamentary unity. The crisis could prompt early elections this autumn. The Nord Stream 1 pipeline is to resume gas delivery following scheduled summer ma...

Wall Street rallies, helping along markets into the green globally as earnings season begins. Netflix manages to stem subscriber losses, losing half the number initially feared. The streaming giant was saw strong numbers in Latin America and Asia. Germany awaits the scheduled re-start of the Nord Stream 1 gas pipeline following maintenance. Gas flows look to be on track following preliminary testi...

Russia’s Gazprom has declared ‘force majeure’ on certain natural gas supplies into Europe provoking criticism from German utility Uniper. Apple shares tumble on the news that the tech giant will slow hiring and investment in some units as recession fears weigh. Goldman Sachs and Bank of America beat earnings expectations but both CEOs express concerns over inflation. Japanese conglomerate Softbank...

Global markets are in the green, anticipating earnings in the U.S. and Europe as well as key meetings at the ECB and the BoJ. U.S. President Joe Biden has received criticism following his meeting with Saudi Crown Prince Mohammed bin Salman. Biden hailed security ties between the two nations but failed to achieve progress on reducing oil prices. In aviation news, Boeing issues stable demand forecas...

Italy’s President Sergio Mattarella has rejected Prime Minister Mario Draghi’s resignation following a split in the coalition government caused by the Five Star Movement. We are live in Rome for the latest. China’s economy contracts by 2.6 per cent in Q2, casting doubt over Beijing’s ability to hit its full-year targets. In the U.S., JPMorgan and Morgan Stanley miss on both the top and bottom line...

U.S. inflation hits its highest level in 41 years to 9.1 per cent. A 100bps rate hike is expected from the Federal Reserve this month. The inversion between the 2- and 10-year Treasury yields widens furthest since 2000. In Italy, Giuseppe Conte’s Five Star Movement has said it will boycott a spending vote today, threatening the ruling coalition government it is part of. And U.S. President Joe Bide...

Markets await key U.S. inflation data which is expected to reach a 40-year high. However, Richmond Fed President Thomas Barkin countered negative sentiment, saying that some commentators are ‘talking ourselves into a recession’. The IMF again cuts its U.S. GDP forecast for the year by more than 0.5 per cent. The euro is hovering about parity against the dollar – its lowest level in 20 years. We he...

Asian equities hit their lowest levels in two years following tech weakness on Wall Street ahead of key inflation data and the start of earnings season. Increased recession fears in Europe pushes the euro close to parity with the dollar which is strengthened by further expected rate hikes by the Fed. In corporate news, Twitter is preparing to file a lawsuit against Elon Musk after the billionaire...

Twitter vows to take Tesla CEO Elon Musk to court after he sought to cancel his $44bn acquisition of the social media company. Tory contenders jostle to replace Boris Johnson as UK Prime Minister but one early favorite, Defence Secretary Ben Wallace, pulls out of the leadership race. In Germany, troubled utility giant Uniper completes its bailout application. We hear from French Finance Minister B...

Following yesterday’s dramatic resignation, Boris Johnson stays on as caretaker prime minister until a new leader is selected. This, despite numerous calls for him to leave Downing Street immediately. We are live from Westminster for the latest. Former Japanese Prime Minister Shinzo Abe is shot while on the campaign trail for upper house elections. Japan’s current Prime Minister Fumio Kishida has...

UK Prime Minister refuses to step down despite senior cabinet ministers urging him to quit late yesterday afternoon. More than 40 Conservative MPs have now left government roles. WE are live in Downing Street for the latest. June’s FOMC minutes signal more restrictive policies are being lined up in a bid to rein in U.S. inflation. French Prime Minster Elisabeth Borne announces plans to nationalise...

The 2- and 10-year Treasury yields briefly invert for the third time this year sparking fresh recession fears. Concerns of a global economic slowdown prompt crude prices to tumble 10 per cent before recovering. UK Prime Minister Boris Johnson’s government is in turmoil following the resignations of Chancellor of the Exchequer Rishi Sunak and Health Secretary Sajid Javid over continued political sc...

Beijing and Washington hold ‘pragmatic and frank’ trade talks with suggestions that the U.S. may cut tariffs in a bid to suppress inflation. The RBA raises rates by 50 bps – its third such hike in three months. Germany’s Uniper sees shares plunge by 30 per cent on reports of a government bailout. German politicians are to draft a new bill to allow Berlin to nationalize struggling gas importers. In...