Squawk Box Europe Express

Wall Street retreats from record highs, with the Dow dipping for a 9th straight session as Nvidia sinks deeper into correction territory. The Federal Reserve is gearing up to deliver its third interest rate cut in a row despite stronger-than-expected retail sales, while the outlook for future cuts remains mixed. In Asia, the Bank of Japan is also gathering to make its final policy decision of the year, as Japanese exports surge in November. Meanwhile, Nissan and Honda mull a merger as Japanese carmakers grapple with slowing demand and tough competition in the EV sector.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow hits its longest losing streak since 2018 while the Nasdaq soars, with Tesla, Google, Amazon and Apple hitting record highs. Meanwhile, Nvidia stumbles through, falling under correction territory, as rival Broadcom powers ahead after bullish calls from Wall Street. In Germany, Chancellor Olaf Scholz loses a confidence vote in the nation’s Bundestag, setting the stage for a February election. Softbank CEO Masayoshi Son pledges a $100 billion investment into the U.S., a massive win for President-elect Trump ahead of his return to the White House.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Disappointing economic data sends Chinese equities lower and bond yields to record lows, renewing pressure on Beijing to boost domestic demand as stimulus impact fades. In South Korea, President Yoon Suk Yeol is impeached after his short-lived martial law attempt last week. Meanwhile, Moody’s cuts its France credit rating, just as new prime minister François Bayrou pledges to seek compromise in a divided parliament. Over in Germany, Chancellor Olaf Scholz awaits today’s no confidence vote, as the country prepares for possible elections in late February.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. producer price inflation comes in hotter than expected on the back of the CPI data earlier in the week. The print potentially casts some doubt over next week’s widely anticipated Fed rate cut. Speaking to CNBC at the NYSE, President-elect Donald Trump said he was optimistic for investors. Asian equities, however, move lower and China’s 10-year treasury bond hits a record high following an uninspiring readout from the country’s Central Economic Work Conference. In Frankfurt, the ECB cuts rates by an expected 25bps but President Christine Lagarde tells CNBC that a larger move had been mooted. In Germany, industry continues to falter with electricity prices hitting an 18-year high following poor returns from renewable sources.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

On Wall Street the Nasdaq closed Thursday’s session above the 20k-mark for the first time ever after the CPI data hit expectations. A further rate cut by the Fed is now expected next week. Asian markets followed suit into the green with investors now eyeing further stimulus from Beijing as a two-day economic summit ends today. We are live at the ECB where a fourth rate cut is almost a certainty but focus will turn to next year’s outlook as the euro zone grapples with faltering growth in France and Germany and the impact of the second Trump presidency. We are also at the SNB in Bern for the first rate decision under new chairman Martin Schlegel with markets split on the size of a widely anticipated rate cut.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street is in the red with the Dow posting its fourth consecutive negative session ahead of today’s inflation print. President-elect Donald Trump’s selection of Treasury Secretary Scott Bessent gives Federal Reserve Chairman Jerome Powell a short-term vote of confidence but sounded doubtful he would retain his position beyond May 26th next year. U.S. Steel shares fall on a report that outgoing President Joe Biden will seek to block the takeover by Japan’s Nippon Steel later this month. In France, President Macron is set to name a new prime minister by the end of tomorrow but has so far excluded both far-right and far-left parties from talks.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese President Xi Jinping says that there are no winners in a trade war as his country’s November export growth slows and imports decline at their sharpest rate in 14 months. Nvidia shares drag Wall Street into the red as regulators in China begin an investigation into potential anti-monopoly violations by the chip giant. We are live in Brussels where Rachel Reeves becomes the first UK Chancellor of the Exchequer to attend a Eurogroup session post-Brexit. She has pledged to re-establish a stronger trade relationship with the bloc. And in tech news, German software developer Teamviewer strikes a deal with Carlyle Europe Technology Partners to acquire digital employee experience platform 1E.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Markets are bracing for the U.S. jobs report, with Wall Street easing back from record highs, and small caps seeing their worst day in 3 weeks. Meanwhile in France, President Emmanuel Macron plays the blame game, resisting calls to step down and calling out the left and right for the government collapse. OPEC+ and its allies delay plans to increase production once again over weak demand and rising production outside the group. In the U.S., President-elect Donald Trump nominates former Senator David Perdue as the next ambassador to China, while tapping Elon Musk-ally David Sacks to lead on crypto and AI.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A vote of no-confidence in France brings the government down, ensuring Michel Barnier is the nation’s shortest-serving prime minister in more than 60 years. We are live in Seoul, South Korea where President Yoon Suk Yeol faces an impeachment vote this Saturday following Tuesday’s 6-hour long declaration of martial law. On Wall Street, tech stocks push indices into the green with the Nasdaq enjoying its best day since July. Federal Reserve Chairman Jerome Powell, however, still urges caution over further rate cuts. And in crypto news, Bitcoin finally breaches the $100k-mark as it continues to rally following the election of Donald Trump. The President-elect taps crypto advocate Paul Atkins for SEC chairman.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

South Korean President Yoon Suk Yeol is reportedly facing an impeachment vote as early as this Friday following yesterday’s 6-hour period of martial law. The political fallout sent the Korean won plunging to a two-year low. In Paris, Prime Minister Michel Barnier’s government is on the brink of collapse as opposition parties table a vote of no-confidence over his handling of the country’s budget. On Wall Street, the S&P 500 and Nasdaq enjoy fresh record highs ahead of this Friday’s employment print. E-commerce giant Amazon launches plans for a new A.I. super-computer using home-grown semiconductors in a bid to head off rival Nvidia.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

French Prime Minister Michel Barnier forces through a contested budget bill which spooks financial markets and exposes his government to a potential no-confidence vote this week. The S&P 500 and Nasdaq begin December hitting new record highs, with Asian indices following suit. Intel CEO Pat Gelsinger is ousted by the company’s board as his plans to turn around the chip maker’s fortunes falter. Meanwhile, the outgoing Biden administration launches new export controls for the chip sector in a bid to hamstring China’s ambitions in the sector. A U.S. judge upholds the decision to deny Tesla CEO Elon Musk a record $56bn pay package, despite shareholders voting to reinstate the move.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Stellantis CEO Carlos Tavares resigns with immediate effect while thousands of Volkswagen workers prepare to strike over lay-offs and wage disputes. Wall Street hits new records for November with the Dow and S&P 500 enjoying their best month of the year. In France, Marine Le Pen’s Rassemblement National threatens to topple Michel Barnier’s government unless further concessions are made to the budget. Elon Musk deepens his feud with OpenAI founder Sam Altman, filing a new injunction to block the ChatGPT parent company from turning a full profit.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The yen surges against the greenback as hopes of a rate increase rise following stronger-than-expected CPI data for Tokyo in November. President Biden warns that President-elect Donald Trump’s proposed tariffs on neighbours Mexico and Canada would be counter-productive. In France, Prime Minister Michel Barnier offers a key concession in budget talks. The National Rally, however, says the move will not be enough to stave off a no-confidence vote against his government early next week. Following Direct Line’s recent rejection of takeover advances, Aviva approaches its rival’s shareholders directly which could pave the way for a hostile takeover bid.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The S&P 500 snaps a 7-day winning streak after the Federal Reserve’s PCE Index ticks upwards to 2.3 per cent. ECB President Christine Lagarde urges the EU to engage with U.S. President-elect Donald Trump on tariffs rather than risk a stand-off and retaliation. Germany’s Uniper hikes its FY guidance after having settled a number of legal cases which has allowed the energy giant to release provisions. In insurance news, Direct Line rejects a potential £3.3bn takeover from rival Aviva saying it had “substantially undervalued” the company.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

China continues to grapple with deflation concerns as October industrial profits sink. U.S. indices appear to shrug of the threat of upcoming Trump tariffs and rising on the promise of further Fed easing. Attention will now turn to today’s PCE print. CNBC learns that OpenAI employees are set to sell $1.5bn of stock in a tender offer to SoftBank. And in the Middle East, a U.S.-brokered ceasefire deal between Israel and Hezbollah comes into effect. Israeli Prime Minister Benjamin Netanyahu warns his country is ready to respond immediately should any part of the agreement be violated.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President-elect Donald Trump vows to slap 25 per cent tariffs on all imports from neighbours Canada and Mexico while also adding a further 10 per cent on all Chinese goods in a bid to combat drug-trafficking and illegal immigration into the U.S. The announcement triggers a rally on Wall Street and the dollar climbs higher. In Germany the SPD choose incumbent Chancellor Olaf Scholz as its nominee in February’s election as the party struggles in the polls. Steel giant Thyssen Krupp says that cheap Chinese imports will force it to reduce its labour force by up to 40 per cent by the end of the decade.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Unicredit launches a takeover bid for Italian rival Banco BPM in a deal worth approximately €10bn. President-elect Donald Trump names billionaire hedge fund manager Scott Bessent as Treasury Secretary prompting a rally in treasuries. In Germany, finance minister Joerg Kukies says that there is widespread support for reforming the country’s debt brake rules but expectations should remain realistic. Cop 29 delegates strike an annual finance target agreement of $300bn to assist poorer nations with the impacts of climate change but critics say the deal still falls short. Goldman Sachs is braced for a $900m hit from its investment in Northvolt after the Swedish battery maker filed for Chapter 11 bankruptcy in the U.S.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President-elect Donald Trump nominated former Florida attorney general Pam Bondi to head the DoJ after his original pick Matt Gaetz decided to withdraw amid allegations of sexual misconduct. In Germany, defence minister Boris Pistorius has declined to stand against unpopular Chancellor Olaf Scholz to head the SPD going into February’s snap election. Lithium ion battery firm Northvolt files for Chapter 11 bankruptcy in the U.S., hampering Europe’s EV ambitions. And in crypto news, Bitcoin inches towards six figures in valuation as investors continue to back the Trump trade.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Nvidia posts another stellar quarter to cement its lead in the A.I. race. Its shares, however, dip in after-hours trade. Indian multinational conglomerate Adani Group sees shares nose-dive after billionaire chairman Gautam Adani is charged by U.S. prosecutors with fraud and bribery charges. U.S. retail giant Target is in the red, falling 21.4 per cent in yesterday’s session – its worst trading day in more than two years. The company issued a sales warning ahead of the Christmas shopping season. And the co-heads of the upcoming Trump administration’s Department of Government Efficiency, Elon Musk and Vivek Ramaswamy, outline plans for mass job and spending waste cuts to the U.S. civil service.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President-elect Donald Trump appoints Cantor Fitzgerald’s Howard Lutnick to run the Commerce Department. Former WWE wrestling mogul and Small Business Administration leader during Trump’s first term Linda McMahon is given the Education Secretary brief. Apollo CEO Marc Rowan is reportedly is favourite to head up the Treasury. U.S. tech stocks soar helped on by chip giant Nvidia coming close to 5 per cent ahead of the U.S. earnings report. Qualcomm announces it is positive on Trump and forecasts $4bn in PC chip sales in the following five years. Ukraine fires six U.S.-made ATACMS deep into Russia after President Biden allowed their use earlier this week. Russian President Vladimir Putin amends his own decree on using nuclear arms. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.