Squawk Box Europe Express

The S&P 500 and the Nasdaq turn in their worst weeks since March with tech giant Apple weighing heavily, while non-farm payrolls miss expectations with a gain of 187,000 jobs in July. Siemens Energy cuts its revenue outlook and posts a third quarter net loss of almost €3 billion, with the German group warning of further serious challenges at its wind unit Gamesa. And Berkshire Hathaway’s cash pile jumps to nearly $150 billion as Warren Buffett's conglomerate posts a near 7% rise in operating earnings.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Amazon posts a blowout quarter, beating on both the top and bottom lines as cost cutting efforts help the company deliver its biggest earnings beat since early 2021. The shine comes out of Apple with shares dropping in extended trade as the iPhone-maker grapples with declining sales of its consumer devices. Treasury yields break higher with U.S. bonds shedding nearly all their gains for 2023, as investors brace for the latest Non-Farm Payrolls report for clues on the Fed's next move. Meanwhile, Bank of England Governor Andrew Bailey tells CNBC the fight against inflation is far from over - and that the central bank will make its decisions as the data comes in. And finally, crude prices are on track for their 6th straight week of gains for the first time in more than a year, as Saudi Arabia extends output cuts into September.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. stocks hit sell-off mode - with the Nasdaq registering its worst day since February as investors digest the Fitch downgrade. JP Morgan CEO Jamie Dimon tells CNBC the decision was "ridiculous".The Bank of England prepares to deliver its fourteenth straight rate hike today as inflation pressures appear to ease, but speculation ramps up over how big the increase will be.Societe Generale beats on the bottom line in the second quarter and confirms its full year outlook, adding to a run of strong results from Europe's banks. Qualcomm shares sink in extended trade after the chipmaker posts a miss on revenue and issues softer guidance, as attention turns to Apple later today - with numbers out after the bell.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Fitch strips the U.S. of its top-tier credit rating - citing fiscal deterioration and political deadlock as the surprise decision draws the ire of Washington. Markets digest the downgrade - with Asian equities sinking deeper into the red. Siemens Healthineers confirms its full year top line outlook despite diagnostics revenue taking a hit in the third quarter. And a grand jury indicts former U.S. President Donald Trump on four counts over alleged efforts to overturn the 2020 election result.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

China's manufacturing sector contracts for the fourth straight month, but equity markets move higher as the country's State Council unveils measures to boost consumption. This prompts broader Asian stocks to extend last week's gains with the Nikkei hitting a 4-week high and tech stocks leading the way on Hong Kong’s Hang Seng. U.S. equity markets close out a milestone week as bumper earnings push the benchmark indices to 15-month highs, while core PCE data shows inflation at its lowest level in almost 2 years. Meanwhile, crude is on pace for its best monthly performance in 18 months, as expectations rise that Saudi Arabia will extend its voluntary production cuts for another month.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Japan’s corporate bond yield surges to its highest level in almost a decade with the yen and Nikkei whipsawing. The BoJ has promised greater flexibility in its yield curve policy. Asia-focused bank Standard Chartered hikes its dividend and announces a $1bn buyback as H1 net profit surges 20% on higher rates. The ECB raises rates for the ninth consecutive time. President Christine Lagarde, like U.S. Federal reserve Chairman Jerome Powell, says she is open to another increase. In tech news, Intel shares are up 8 per cent after a Q2 beat on the top and bottom line. And the CEO of bespoke UK bank Coutts has been forced to resign following the Nigel Farage de-banking scandal.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Fed hikes interest rates to their highest level in 22 years. Chairman Jerome Powell says he will remain open to a further hike or a pause in August. Investors now await the ECB’s rates decision which is expected to be another hike of 25bps as euro zone inflation remains stubbornly above 5 per cent. Airbus beats Q2 profit targets and confirms FY guidance. CEO Guillaume Faury tells CNBC that supply chain bottlenecks do still remain a ‘complex environment’. Social media giant Meta beats on the top and bottom line driven by a recovery in digital advertising. French bank BNP Paribas sees Q2 net income surge by 16 per cent. CFO Lars Machenil tells this channel that price pressures are slowly easing.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

We have a slew of European earnings with Deutsche Bank and Unicredit dominating as investors anticipate another bumper quarter from the banking sector. Spanish giant Santander confirms its full-year outlook after a 15 per cent jump in H1 net interest income. In the U.S., tech earnings were front and centre. Google parent company Alphabet shares were up in after-hours trading as the company’s cloud unit drove profits. Microsoft, however, falls into the red. In luxury news, LVMH paints a mixed picture with Asian sales on the up but U.S. sales declining as Americans choose to travel in Europe. And NatWest CEO Dame Alison Rose has been ousted as CEO after she admitted “a serious error of judgement” in leaking confidential news to the BBC about the closure of Brexiteer Nigel Farage’s account with wealth manager Coutts.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow enjoys an eleventh day in the green posting its highest close since February last year. Chinese and Hong Kong markets are up on the promise of more economic stimulus from Beijing. Adidas has improved its full-year loss guidance after unexpectedly strong sales of Yeezy trainers despite the abandoned collaboration with U.S. rapper Kanye West. Weak demand for its weed killer forces Bayer to cut its full-year outlook for a second time while software giant Logitech hikes its sales guidance despite a 16 per cent decline in Q2 revenues. And we speak to Hinduja Group chairman Gopichand Hinduja who says UK Prime Minister Rishi Sunak has taken the correct steps to prevent the country from sliding into a recession.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

We are live in Madrid where yesterday’s general election results in no outright winner, which could now mean months of coalition talks. Partido Popular leader Alberto Feijoo has stressed the need to avoid a prolonged period of uncertainty. The Dow closes last week in the green – only just – for the 10th consecutive day which in turn is the index’s longest rally since 2017. Markets are now eyeing key meetings from the ECB and the Fed later this week. U.S. Energy Secretary Jennifer Granholm has called for greater oil output to curb recent price hikes. She tells CNBC recent markets have been ‘emotional’. And in Greece, wildfires on Rhodes have triggered the largest mass evacuation in the country’s history.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow records its longest winning streak since 2017 but the Nasdaq slumps to its worst day in 4 months. German software giant SAP misses Q2 expectations and slashes revenue guidance for its cloud unit but CEO Christian Klein tells CNBC that cloud remains its key growth driver despite waning demand. Indian IT firm, Infosys, sees shares tumble after it cuts its outlook in half due to inflation pressures and a pullback in discretionary spending. The Conservatives win a by-election in Boris Johnson’s former constituency but lose a seat to Labour in what was the largest swing for the party since 1997. And we are live in Madrid where Spanish Prime Minister Pedro Sanchez’s snap election gamble comes to a head this Sunday.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Tesla shares dive in extended trade after price war pressures hit Q2 margins. However, CEO Elon Musk shrugs off recession fears to forecast stellar growth for the EV maker. Netflix sees subscriptions beat estimates in Q2 following a crackdown on password-sharing. However, a miss on guidance sends shares lower in after-hours trade. Goldman Sachs endures a bruising Q2 posting its lowest quarterly profit in 3 years as deal-making slumps.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Higher net interest in the U.S. helps Bank of America and Morgan Stanley to record bumper quarterly profits. BofA CEO Brian Moynihan tells our colleagues Stateside that a soft landing is now very much a possibility. The strong bank earnings on Wall Street see the Dow posting its longest winning streak in more than two years. Microsoft reveals pricing for its new A.I. subscription sending shares rocketing to a new all-time high. The firm’s Activision Blizzard deal extension talks now go down to the wire. The UK could see further hot inflation data coming through later on, as continuing price pressures mean the Bank of England is likely to maintain tightening.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street’s top banks slash FY Chinese GDP with both Hong Kong and mainland shares underperforming and the property sector shedding value. U.S. equities are in the green at the start of a busy week of earnings, with major banks’ earnings in the spotlight. Microsoft’s deal for Activision Blizzard is closer to completion after Berkshire Hathaway reveals it has offloaded 70 per cent of its stock in the game maker. Russia crashes the Ukraine grain deal blaming the West for not upholding its side of the bargain. Ukrainian President Volodomyr Zelenskyy slams the move, saying extortion will not be tolerated. And in retail news, the board of beleaguered French supermarket Casino approves rescue talks with Czech billionaire Daniel Kretinsky.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Chinese economy continues to stutter, only growing by 0.8 per cent in Q2, raising expectations of vital stimulus efforts from Beijing. Asian equities respond in kind slipping on the news, however Wall Street and European markets enjoy their best week since March. Microsoft and Sony agree to a 10-year deal to keep the best-selling ‘Call of Duty’ game on the PlayStation console. The move brings Microsoft a step closer to sealing the Activision Blizzard deal. And U.S. banks kick off earnings season posting bumper profits via rising net interest rises. Citi CFO Mark Mason tells CNBC it is still too early to rule out a recession.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street posts its fourth-straight day in the green while Asian equities are on track for the best week of the year after U.S. producer prices come in muted for June. However, San Francisco Fed President Mary Daly tells CNBC the fight against inflation is not over yet. Earnings season is set to kick off in the U.S. with the larger banks are braced for a surge in loan losses as high rates affect borrowers. In crypto news, a U.S. judge rules that a Ripple token does not represent a security which offers a potential supervisory escape route for other altcoins. The FTC’s Chair Lina Khan is grilled on Capitol Hill as the regulatory body fails in another attempt to block Microsoft’s $69bn takeover of Activision Blizzard.   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 and the Nasdaq close Wednesday’s session at a 15-month high after U.S. inflation drops to its lowest level in two years. Chinese exports suffer their worst decline since February 2020. We are live in Vilnius where following a difficult and testy NATO summit, G-7 countries provide Ukraine with long-term security guarantees but President Volodomyr Zelenskyy tells CNBC that full NATO membership is his ultimate goal. German industrial giant BASF surprises by slashing FY guidance as weakening industrial demand weighs. And in tech news, the U.S. FTC appeals the court ruling which green-lit Microsoft’s $69bn of game maker Activision Blizzard.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

We are live in Vilnius, Lithuania where NATO members stop short of an outright invitation to Ukraine to join the alliance. German defence minister Boris Pistorius tells CNBC that Kyiv will have to wait until the conflict ends to become a fully-fledged member. Speaking ahead of important bilateral meetings, Ukrainian president Volodomyr Zelenskyy slammed the delay as ‘absurd’. In tech news, Activision shares surge after a U.S. judge green-lights Microsoft’s bid to buy the game maker. UK authorities have now indicated they may welcome the deal. U.S. equities close in the green with the S&P 500 and the Nasdaq within 1 per cent of their 52-week highs.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Turkey clears the path for Sweden’s NATO accession with Ukraine’s membership bid now the focus of attention at the bloc’s summit in Vilnius. Lithuanian President Gitanas Nausėda tells CNBC full integration for Kyiv is paramount. U.S. equities break a three-day losing streak with financial and energy stocks balancing out tech losses ahead of key inflation reports and the beginning of quarterly earnings. UK Chancellor Jeremy Hunt calls for wage restraint in a bid to rein in inflation. BoE governor Andrew Bailey says salary increases are contributing to price pressures.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. Treasury Secretary Janet Yellen hails a constructive trip to China after holding 10 hours of talks with senior officials, as the U.S. considers curbs on investment. Chinese producer prices fall at their fastest pace in over 7 years while CPI comes in on the brink of deflation, underscoring the challenges facing the world's second largest economy. U.S. President Joe Biden says Ukraine is not yet ready for NATO membership, acknowledging divisions within the defence alliance as Kyiv marks 500 days of war ahead of a key summit in Lithuania. Headline U.S. non-farm payrolls come in below forecasts, but strong wage growth fuels concerns of further rate hikes from the Fed - sending the Dow to its worst weekly performance since March. ECB governing council member Francois Villeroy de Galhau pushes back against suggestions central banks should raise their 2% inflation targets, while Eurogroup President Paschal Donohoe tells CNBC there's more work to do.See Privacy Policy at https://art19.com/privacy and California