Squawk Box Europe Express

Global equities see sharp sell-offs following this week’s rate hikes in the U.S. and Europe with warnings of more to come. All three major U.S. indices as well as the STOXX600 slump to their lowest level since November. Both the ECB and BoE push rates up by a further 50bps but say that rate increases will continue into 2023. In Brussels, EU leaders agree on more aid to Ukraine and how to respond to President Biden’s Inflation Reduction Act. However, a corruption scandal engulfing the European Parliament continues to deepen. We hear exclusively from the CEO of shipping titan MSC, Soren Toft, who says his firm is ready to capitalise on a predicted import/export recovery from China following Beijing’s relaxation of its zero-Covid policy.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Federal Reserve Chairman Jerome Powell lifts rates by 50bps and signals that the hiking path will continue into 2023, with its terminal rate up above 5 per cent. Investors now await the ECB and BoE to follow the Fed’s moves amid faint hopes that inflation may have peaked. In China, industrial production growth slumps in November while retail is down by almost 6 per cent as the countries zero-Covid restrictions continue to hamstring the economy. As EU leaders meet in Brussels to respond to the U.S. Inflation Reduction Act, we hear from Estonian PM Kaja Kallas who says competition rules cannot simply be ‘thrown out of the window’.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Founder and former FTX CEO Sam Bankman-Fried is denied bail in the Bahamas as he faces criminal charges over the collapse of the crypto exchange. Prosecutors have called it called it the largest embezzlement in U.S. history. Meanwhile rival exchange Binance have denied fears of contagion in the sector despite, according to crypto analytics firm Nansen, seeing $3bn of withdrawals within 24 hours. U.S. inflation data for November comes in lower than expected pushing Wall Street marginally higher. Investors now expect a 50bps rate hike from the Federal Reserve later today. And in Brussels, EU energy ministers fail yet again to compromise on a cap on gas prices with another meeting scheduled for next week.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Sam Bankman-Fried is arrested in the Bahamas and faces extradition to the United States, with prosecutors expected to charge the former poster boy of the Crypto industry with wire and securities fraud. U.S. equities kick off a crucial week of central bank decisions and economic data on a high, with investors hoping for a softer inflation print stateside today that could set the tone going into 2023. China and Hong Kong continue to ease Covid restrictions, dropping their state-mandated mobile tracking apps as the region continues to unwind some of the world's strictest curbs. EU Energy Ministers prepare to meet in Brussels for crunch talks on a gas price cap as the bloc is warned about potential shortages next winter.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 post their worst weekly performance since September, ahead of a busy week - with U.S. CPI data and a slew of central bank rate decisions in focus. Hong Kong's Hang Seng leads losses in Asia, with tech and property stocks under pressure. Crude climbs after Russia's Vladimir Putin threatens to turn off the taps to Europe, while a cold snap hits the continent and puts its energy security to the test. European Parliament Vice President Eva Kaili is suspended from her party, after Belgian police detain 2 MEPs and seize €600,000 in cash in a series of weekend raids.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Prices at China's factory gates fall for the second straight month, and consumer inflation slows on weak demand, while Asian stocks take heart from Beijing's easing of Covid curbs. The S&P snaps a five-day losing streak and part of the yield curve sees its deepest inversion since 2001, as investors eye producer price data for clues into the Fed's rate hiking path. U.S. regulators sue to block Microsoft’s $75 billion acquisition of Activision Blizzard over concerns it would harm competition in the gaming space. FTX founder Sam Bankman-Fried is warned he could be subpoenaed to testify on Capitol Hill next week, as the SEC calls on public companies to disclose their crypto exposure amid fears of further contagion.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

ECB staff discuss strike action after rejecting a below-inflation pay offer, as the central bank's own survey shows price pressures are set to rise next year. Hong Kong's Hang Seng jumps on local media reports authorities are considering a further easing of Covid measures, with tech stocks leading the charge. China's president Xi Jinping starts his three-day visit to Saudi Arabia in a bid to boost ties with the region. The S&P 500 posts its fifth straight negative session as rate concerns cloud the outlook, while consumer borrowing climbs.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

China relaxes Covid measures, removing the need for negative test results before travel and allowing home quarantine. U.S. equities slide, with the S&P 500 posting its fourth straight day of losses while JP Morgan CEO Jamie Dimon tells CNBC falling consumer wealth could spark a downturn. NBC News projects Raphael Warnock will win a crucial run-off race in Georgia, giving the Democrats an ouright majority in the Senate and delivering a blow to former President Donald Trump. And, Meta slides as the company threatens to pull news from Facebook, as its ad model reportedly comes under pressure in Europe.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow slumps nearly 500 points, after stronger than expected services data stokes fears the Federal Reserve may continue hiking rates until it triggers a recession. Tesla shares reverse even as the carmaker denies reports its planning to slash its Model-Y production at its Shanghai factory, after reporting record Chinese sales in November. Beijing officials continue to ease Covid restrictions amid a report China could announce ten new easing measures as soon as tomorrow, after last month's historic demonstrations. And Italy's Finance Minister adds to the chorus of calls for a European response to America's Inflation Reduction Act.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Shares in Greater China jump as cities across the mainland continue to ease Covid restrictions, raising hopes Beijing will soon end its zero-covid policy. Russia pledges to fight a G7-imposed price cap on its oil, set to come into force today, while OPEC and its allies agree to hold output steady amid weakening global demand. Wall Street posts back-to-back weekly gains for the first time since October, while November's non-farm payrolls report blows past expectations despite the Fed's attempts at clamping down inflation. And S&P Global slashes France's outlook to negative, citing rising budgetary risks as the country's debt pile grows amid ongoing support measures against inflation, and spiking energy costs.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asian markets retreat and U.S. equities give back some gains, with investors eyeing today's Non-Farm Payrolls report - while Fed Governor Michelle Bowman echoes Jerome Powell's message that tightening may slow but last longer. EU ministers edge closer to a deal to cap Russian crude oil prices, tentatively agreeing on a 60 dollar per barrel ceiling just days ahead of a de facto deadline. President Biden rolls out the red carpet for his French counterpart Emmanuel Macron, hosting his first state dinner as the pair pledge to hold Russia accountable for its actions in Ukraine. Twitter reportedly offers incentives to advertisers in a bid to win them back - while Elon Musk suspends Kanye West's account after the rapper violates the platform's rules once again.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. Federal Reserve Chairman Jerome Powell hints at a slowdown in interest rate rises. A 50bps move is expected in December, sending U.S. equities into the green. The tech sector leads gains in Hong Kong as Asian markets track Wall Street. A private sector survey in China shows manufacturing activity shrinking for a fourth consecutive month. Sam Bankman-Fried has denied he committed fraud at his now-bankrupt FTX exchange. We hear exclusively from Dutch minister for Climate and Energy Policy, Rob Jetten, who says that the failure of EU nations to agree on a gas price cap is jeopardising the bloc’s energy crisis plan.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese manufacturing activity shrinks for a second consecutive month as strict zero-Covid restrictions and dropping global demand weigh. Opec+ nations reportedly prepare to make deeper supply cuts, pushing prices higher as the EU’s ban on the majority of Russian crude imports is due to be enforced. U.S. equities dip for the third straight day ahead of a key speech from Federal Reserve Chairman Jerome Powell. And in banking news, HSBC is to sell off its Canadian unit to the Royal Bank of Canada for $10bn as it pivots towards the Chinese market.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese equities rebound after Wall Street slides, with the Hang Seng leading the charge, as new Covid cases decline in the country for the first time in over a week. Crude prices rebound, in spite of more hawkishness from the Fed's James Bullard, ahead of a key meeting of oil producers later this week with a major policy adjustment reportedly on the table. Blockfi files for bankruptcy, leaving at least 100,000 creditors on the hook, as the crypto lender becomes the latest company to fold in the wake of FTX's dramatic collapse. And, Elon Musk accuses Apple of halting its advertising on Twitter and threatening to remove the platform from its app store.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Protests erupt across China, some even calling openly for Xi Jinping to go – as frustration mounts over strict Covid controls. Profits at China's industrial firms slide, weighed down by Covid restrictions and falling factory-gate prices, as authorities unleash waves of new stimulus to spur demand. Oil prices plunge - hitting their lowest level since 2021, and Asian equities also slide, as uncertainty over China rattles markets. And, Black Friday online sales top 9 billion dollars, hitting a new record as consumers flock to 'Buy Now Pay Later' platforms to offset soaring prices.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Covid cases in China hit fresh record highs as new local infections top 30,000, weighing on investor sentiment in the region. The ECB stresses further rate rises are needed to prevent inflation from becoming entrenched, with Board Member Isabel Schnabel signaling the central bank is not yet planning to slow the pace of hikes. EU states remain deadlocked over a price cap on Russian oil, while energy ministers in Brussels agree to revisit a price cap on gas next month. Retailers brace for one of the busiest shopping days of the year. U.S. consumers are expected to increase their Black Friday spending, while European shoppers face a downturn.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 green ahead of the Thanksgiving holiday period as the Federal Reserve hints that it may soon wind down the pace of rate hikes. In China, authorities tighten Covid restrictions again as cases reach a new record high. The PBOC has suggested a potential RRR cut in a bid to support the economy. EU nations are at loggerheads over both the proposed G7 Russian oil exports price cap as well as a ceiling on gas as the bloc meets today for an extraordinary energy summit. Russian missiles pound Ukrainian energy infrastructure installations causing nationwide blackouts. President Volodomyr Zelenskyy tells the UN Security Council that Moscow is guilty of energy terrorism.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Credit Suisse warns of a CHF1.5bn loss in the fourth quarter. The lender will be asking shareholders to vote on its restructuring and capital-raising plans. U.S. markets are up ahead of the Thanksgiving holiday with investors eyeing Fed minutes later today. The EU proposes a €275/MWh gas price cap in a bid to stem soaring costs across the bloc this winter. However, Greek energy minister Kostas Skrelas tells CNBC the level is too high. The FTX bankruptcy proceeding is under way in Delaware amid allegations of lost assets and fatal mismanagement by founder and CEO Sam Bankman-Fried.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Beijing orders closures of numerous public facilities as Covid infections in the capital hit a record high. Cases also continue to surge in Guangzhou and Chongqing. The dollar and Treasury yield dip as Cleveland Federal Reserve President Loretta Mester tells this channel that inflation needs to slow further before she is ready to stop raising rates. Crude rallies after hitting a ten-month low as Saudi Arabia denies reports that Opec+ is set to hike output next month. The fallout from the collapse of FTX continues to be felt in the sector with Bitcoin falling to below $16,000 for the first time in 2 years while lender Genesis is now reportedly set to file for bankruptcy.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese authorities locks down the largest districts in Beijing and Guangzhou following the country’s first Covid deaths in six months. Former Disney CEO Bob Iger returns to the role to replace Bob Chapek as the entertainment giant attempts to regain momentum following a torrid quarter. Investors turn their focus on retail earnings and upcoming Black Friday sales for signs of resilience from the U.S. consumer. Atlanta Federal Reserve President Raphael Bostic suggests that one more rate rise of up to 100bps could prove to be enough to bring down inflation. In crypto new, FTX admits it owes its top 50 creditors more than $3bn as the new CEO scrambles to sell off or restructure the business. And in Egypt, Cop27 wraps up with negotiators hailing an agreement on ‘loss and damage’ funds. However, no deal has been reached to further curb greenhouse gases.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.