Squawk Box Europe Express

Japan’s government confirms Kazuo Ueda as its nominee to lead the BoJ with market analysts anticipating the new governor will keep the country’s monetary policy loose but to scrap yield curve control. We await today’s U.S. CPI data with investors hoping on seeing further signals of inflation easing despite Fed officials remaining hawkish. There are suggestions the EU may swerve recession with attention now focusing on the bloc’s heavy debt load. EU Commissioner Valdis Dombrovskis tells CNBC that the EU’s economy remains robust despite slow growth rates. U.S. and Chinese authorities are reportedly considering a face-to-face meeting at this weekend’s Munich Security Conference amid ongoing spy balloon accusations.  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 Nasdaq finish their worst week in more than a month as investors brace themselves for U.S. CPI data out later this week as well as further rate hikes to rein in inflation. The weak sentiment crosses the Pacific with Japan’s Nikkei leading losses. Questions linger over whether prospective BoJ governor nominee Kazuo Ueda would move against the country’s ultra-loose monetary policy. The U.S. Air Force has shot down a fourth flying object in American air space in just eight days – this time over Lake Huron – as Washington moves to blacklist 6 Chinese firms suspected of being linked to the spy balloon downed over the coast of South Carolina. And in sports news, the Kansas City Chiefs beat the Philadelphia Eagles 38-35 in Superbowl LVII.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Standard Chartered shares dip sharply in Hong Kong after First Abu Dhabi Bank denies reports it is lining up a $35bn takeover of the Asia-focused UK lender. Inflation data in China comes in below expectations as factory gate prices continue to fall while CPI surges. The proxy fight between Disney and billionaire investor Nelson is now over after CEO Bob Iger announced vast reorganisation and cost-cutting plans at the entertainment giant. The two have now told CNBC that they will now share a joint vision for the company. In luxury news, L’Oréal sees Q4 profits jump by 8 per cent, helped along by strong showings in Europe and the U.S. However, strict Covid restrictions in China slowed growth in the quarter. 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 corporate earnings. Credit Suisse posts a consecutive net loss of CHF7.29BN for last year. However the outflow of business grabs the headlines with up to CHF111BN leaving the lender. Siemens smashes Q1 forecasts and raises its FY sales and profits guidance. Stateside, Disney stocks are up in after-hours trade after returning CEO Bob Iger announces a raft of reforms, including 7,000 job cuts and $5.5bn in cost-cuts. And Alphabet shares plunge following an error made by its A.I. chatbot in a promotional video clip.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Biden addresses Congress in his State of the Union speech, taking aim at China and big business while hailing his own economic agenda in its role in fighting inflation. The dollar is down and Treasury yields rise following Federal Reserve Chairman Jerome Powell’s comments that further rate hikes may still be on the table if inflation fails to stabilise. French lender Société Générale posts Q4 net income falling by 35 per cent but still beating expectations. Volkswagen reports a rise in FY sales and profit despite weak deliveries. There is little progress following Inflation Reduction Act talks between French and German economy ministers. WTO director-general Ngozi Okonjo-Iweala tells CNBC she hopes Brussels and Washington can still avoid a trade confrontation.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Softbank posts a fourth consecutive quarter of losses at the investor’s Vision Fund. CEO Masayoshi Son is to miss the earnings call for the fist time ever. French lender BNP Paribas reports a 9 per cent rise in full-year profits but CFO Lars Machenil tells CNBC that the macro environment remains uncertain. Q1 net loss more than doubles at Siemens Energy due to charges at its wind division Gamesa. However CEO Christian Bruch the pipeline is still strong. U.S. President Joe Biden is due to deliver his second State of the Union address and is expected to hail his landmark climate legislation but he is likely to be dogged by questions over his handling of a suspected Chinese spy balloon. And in south-eastern Turkey the death toll continues to rise after the region was hit by two massive earthquakes on Monday morning.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The US shoots down a suspected Chinese spy balloon, drawing an angry response from Beijing as Secretary of State Antony Blinken cancels what would have been the Biden administration's first cabinet visit to China. Wall Street takes a step back after the January jobs report blows past forecasts, but tech stocks still see a five-week rally - the longest run since November 2021. The yen dips as the market digests reports that one of the most dovish candidates, Masayoshi Amamiya, has been sounded out as a potential successor to Haruhiko Kuroda at the head of the BOJ. Adani's stock slide enters a third week, as Adani Enterprises reportedly postpones a bond sale, and Moody's downgrades its outlook on two of the group's companies.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Apple posts its first profit miss in seven years as demand for its high-end iPhones drops on production issues and a softer macroeconomic environment. In other tech earnings news, Alphabet flags slower ad revenues, and Amazon struggles on weaker consumer sentiment. Meta surges to one of its best days in almost a decade, pushing the Nasdaq to its highest level since September. Top executive Nicola Mendelsohn tells CNBC the tech giant's strategy shift is paying off. The ECB and BOE both hike rates by 50 basis points, while a change in wording at the Bank of England sparks speculation rates are now at or near the peak. Governor Andrew Bailey tells CNBC it's too soon to be sure. Adani Group losses spiral past $100 billion since late January, as a short-seller's accusations of fraud spark an intensifying crisis at the Indian conglomerate.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 corporate earnings this Super Thursday including Deutsche Bank, Roche and Santander, ahead of key central bank decisions. Stateside, the Federal Reserve slows the pace of rate hikes to deliver its smallest increase in a year. Chairman Jerome Powell hints that the central bank will again hike in March despite signs of cooling inflation. We await interest rate decisions from the BoE and the ECB later today as euro zone inflation eases for a third consecutive month.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Struggling tech stocks surge on the Nasdaq, helping the index to its best yearly start since 2001. The S&P 500 also enjoys its best January in four years. The private Caixin survey shows Chinese factory activity shrinking for a sixth consecutive month, which contrasts more optimistic government figures. Snap shares are in the red in extended trade as falling digital advertising spend weighs. Meta shares are also down ahead of its Q4 earnings due out later today. Paris sees huge demonstrations against President Macron’s pension reforms as a number of countries brace for industrial action on Wednesday. The UK will see its biggest mass walkout in 12 years.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Markets in Asia follow Wall Street downwards as cautious investors brace for a slew of tech earnings and central bank moves later this week. Swiss lender UBS posts a 23 per cent surge in Q4 net profit, beating bottom-line expectations. China’s economy swings back to growth as disruption fears following the country’s emergence from strict Covid restrictions fade. The IMF hikes its global economic outlook for the first time in a year with the UK lagging behind among developed economies. Speaking to CNBC, the IMF’s chief economist, Pierre-Olivier Gourinchas urges vigilance. And we are live at the annual Baker Hughes meeting in Florence. The company has announced a new exploration partnership with Fortescue Future Industries.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

As the week-long Chinese Lunar New Year holiday ends and trade restarts, the CSI 300 index nears bull market territory. Renault and Nissan are set to announce the details of their restructured tie-up. Renault is to slash its stake in the Japanese car maker down to 15 per cent. Oil is up on optimism following the end of the Chinese New Year. BP, however, is bearish on the demand outlook and has pared back its long-term guidance. American, Dutch and Japanese authorities are moving closer to a deal which would restrict China’s ability to buy advanced chip technology.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. markets are up following a slew of economic data and Q4 earnings. Tesla helps bump the Nasdaq up by almost 2 per cent. The American economy grows more than expected in the final quarter of 2022 with hopes that the Federal Reserve can attain a ‘soft landing’. President Biden hails the numbers, saying it proves his economic plan is having a positive effect. Russia launches attacks on several Ukrainian cities following Kyiv’s securing of heavy tank deliveries from Western allies. Luxury giant LVMH posts record FY profits for the second year running, welcoming the return of Chinese high-end shoppers.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Tesla posts a Q4 earnings and revenue beat on both the top and bottom lines, causing the stock price to surge. CEO Elon Musk says price cuts for Tesla cars have boosted demand. In Hong Kong, the Hang Seng moves almost 2 per cent as it kicks off the Chinese New Year of the Rabbit. In Japan, the Nikkei is down as BoJ minutes reveal division about the country’s inflation. The U.S. and Germany sign off on delivery of Abrams and Leopard tanks to Ukraine with Presidents Biden and Zelenskyy both hailing the moves as crucial in countering Russian aggression. And investors are bracing for U.S. GDP figures out later today as forecasts put Q4 growth at 2.4 per cent.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Microsoft stutters in extended trade after it posted the slowest quarterly revenue growth since 2016. The NYSE suffers a technical glitch which stops trade in 251 stocks. Several trades will now be cancelled. Markets closed mixed but the Dow posted its third consecutive session in the green. Tesla CEO Elon Musk tells a California jury he was not bound by any commitments in 2018 when he tweeted he had secured the funds to take the EV maker private. Returning South Korean stocks help push Asian markets to a seven-month high but Australia equities disappoint with inflation hitting a 33-year high. And following months of discussions, the U.S. and Germany are reportedly set to deliver Abrams and Leopard tanks to Ukrainian forces.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. equities rally lead by tech stocks as the market anticipates a 100 per cent chance of the Federal Reserve paring back next week’s rate hike to 25bps. Audio streaming giant Spotify is to announce job cuts of up to 6 per cent as Google boss Sundar Pichai says he had to act decisively in the face of faltering growth. Qatar’s investment arm has upped its share of Credit Suisse as the lender turns to the Middle East to help fund its restructuring strategy. There are growing calls from Kyiv and various EU capitals for Germany to green-light its Leopard tank deliveries. NATO Secretary-General Jens Stoltenberg is to hold talks with new German defence minister Boris Pistorius today.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The IMF hints it may upgrade the global growth outlook for the year as the economic forecast shows early signs of brightening. Speaking during a CNBC panel at the World Economic Forum in Davos, managing director Kristalina Georgieva warned that rising rates could still hamper an upturn. The dollar falls on expectations of less aggressive Fed rate increases while the euro hits a nine-month high after ECB President Christine Lagarde tells CNBC there are more 50bps hikes to come. Tech stocks are in focus ahead of earnings this week after the Nasdaq posts its third consecutive week of gains. In China, a major Covid exit wave looks unlikely as up to 80 per cent of the population has already been infected, according to top scientists. German Chancellor Olaf Scholz and French President Emmanuel Macron meet in Paris and vow closer EU ties in the face of greater economic competition from the U.S. and geo-political threats from Moscow.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at http

Japanese inflation hits a 41-year high of 4 per cent last month, which is twice the BoJ’s target as the central bank sticks with its ultra-loose policy. We hear from Dutch Prime Minister Mark Rutte who says he does not believe the U.S. IRA was intended to hurt EU economies but the move has impacted businesses within the bloc. U.S. markets are in the red for the week as jitters over the Federal Reserve’s rate path dampens sentiment. Activist Greta Thunberg slams WEF policy makers for not prioritising climate concerns. And in crypto news, lender Genesis officially files for bankruptcy, holding liabilities of $11bn.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

There are renewed U.S. recession fears following weaker-than-expected retail and PPI data. Wall Street plunges into the red while the 10-year Treasury yield hits its lowest level since September. Goldman Sachs CEO David Solomon, however, tells CNBC he believes sentiment is softening and is hopeful of a softer landing both Stateside and in Europe. Several Fed officials, including James Bullard and Loretta Mester say the U.S. policy rate should top 5 per cent during a new round of hawkish commentary. We speak to new Credit Suisse CEO Ulrich Koerner who says the bank’s business restructuring strategy is progressing smoothly as the lender scrambles to retain its top staff. And in crypto news, lender Genesis is set to file for bankruptcy while U.S. officials detain the founder of the Bitzlato exchange for allegedly handling more than $700m in illicit funds.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Stocks in Japan surge as the yen posts its worst session in almost three years and the JGBs fall back as the BoJ insists it will continue its yield curve control procedure. We hear from Polish President Andrzej Duda who says that Russian President Vladimir Putin is on the back foot in Ukraine, calling on allies to further increase support for the nation. German Finance Minister Christian Lindner tells this channel that a trade war with the U.S. must be avoided and that Brussels should work hand-in-hand with Washington to combat inflation. In banking news, Goldman Sachs posts its worst profit miss in almost ten years with rival Morgan Stanley also underperforming. However, U.S. bank CEOs in Davos predicted a more gentle recession this year. Chinese Vice Premier Liu He is set to meet with U.S. Treasury Secretary Janet Yellen in Zurich as Beijing reports a steady increase in full-year FDI.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-inf