Squawk Box Europe Express

U.S. equities dip slightly for a second day while bond yields rise after St Louis Federal Reserve President James Bullard argues that rate rises have had a minimal effect at curbing inflation. However, Bullard believes that 2023 will finally see disinflation. There are hopes of reopening in China with Alibaba shares up to a six-week high in Hong Kong. This, despite the company missing sales forecasts due to zero-Covid restrictions. In the Bahamas, the government seizes collapsed crypto exchange FTX’s assets following its bankruptcy filing. And there is turmoil at Twitter as mass resignations follow CEO Elon Musk’s call for a new ‘hardcore’ work culture at the social media giant.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

UK Chancellor Jeremy Hunt is set to present his autumn budget in the House of Commons later today. Bank of England governor Andrew Bailey says that recent political and financial turmoil has battered the country’s reputation. U.S. markets are in the red following a Christmas warning note from retail giant Target. Federal Reserve governor Christopher Waller indicates that pace of rate hikes may be close to slowing. Tuesday’s fatal explosion in eastern Poland has been judged not to have been part of a deliberate attack by Russia. However, European Parliament President Roberta Metsola tells CNBC that pressure on Moscow must be maintained. Singaporean investment titan Temasek writes down its $300m stake in FTX. It says it misplaced trust in CEO Sam Bankman-Fried. Short-seller Carson Block tells this channel that the crypto sector has lost its way.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

World leaders hold an emergency meeting at the G20 in Bali after an alleged missile kills two people in a Polish village near the Ukrainian border. President Biden is cautious on speculation the missile may have been launched by Russian forces. U.S. equities rally once more after factory inflation data comes in weaker than expected. October producer prices rose 0.2 per cent. Former U.S. President Donald Trump has officially announced he will run in 2024 despite intense criticism within the GOP. In crypto news, BlockFi could be next in line to file for bankruptcy. Crypto.com CEO Kris Marszalek tells CNBC the sector is feeling the impact of FTX’s collapse.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

China’s economy continues to stutter as October data comes in short with Covid restrictions and a property slump weighing heavily on activity. U.S. equities are in the red for the first time in three sessions after Federal Reserve Vice Chairman Lael Brainard backs slower tightening but says that further work lies ahead. Berkshire Hathaway makes a $4bn swoop for a holding in Taiwanese chip maker TSMC – the third tech company in its portfolio. German semi-conductor firm Infineon hikes its long-term guidance following a 30 per cent rise in FY revenue as well as unveiling plans for a new €5bn facility in Dresden. And in Bali, Indonesia, President Biden and President Xi strike a warmer tone despite recently soured relations between Washington and Beijing. The U.S. has voiced concerns over rhetoric regarding Taiwan but President Biden has downplayed talk of a new Cold War.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Biden and President Xi prepare to meet for head-to-head talks at the G20 in Bali as relations between the world’s biggest economies sour further. We hear from German economy minister Robert Habeck who says Berlin must diversify its economic partners after cancelling several high-profile Chinese investments. In the U.S., Democrats retain the Senate with wins in Arizona and Nevada. The GOP are set to win the House of Representatives. Tech stocks lift the S&P 500 while global sentiment shifts helps European equities to their best weeks since March. And in crypto news, the collapse of the FTX exchange shocks the sector. Rival Binance withdraws FTX tokens from its platform.  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 best day since 2020 with the Dow surging over a thousand points on signs inflation may have peaked. Goldman Sachs’ tells CNBC the data vindicates the Fed's approach. The jump in U.S. equities sends yields sharply lower while the dollar sinks in its worst day since 2009. China adjusts its Covid controls, cutting the quarantine period for close contacts and easing restrictions for inbound travelers as Beijing looks to minimise the number of people affected by the measures. The White House announces President Biden will hold his first face-to-face meeting with Chinese leader Xi Jinping next week, with the aim of improving relations between the two global superpowers. In the world of crypto, FTX's Sam Bankman-Fried courts investors, reportedly seeking more than 9 billion dollars to rescue the crypto exchange. SEC Chairman Gary Gensler tells CNBC the sector is failing to comply with clear rules.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19

Wall Street is in the red as control of the U.S. Congress remains undecided and the crypto sell-off sinks market sentiment. Crypto exchange Binance pulls out of a deal to buy up troubled rival FTX’s U.S. business, citing “issues beyond our control and our ability to help”. There are three U.S. states whose Senate midterm election results hang in the balance. Georgia is set for a December run-off with Nevada and Arizona still too close to call. Meanwhile, President Biden says he prepared to form bipartisan ties with Republican lawmakers. Social media giant Meta are set to slash 11,000 jobs. CEO Mark Zuckerberg has said he takes full responsibility for the redundancies.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Control of the U.S. Senate is too close to call as Pennsylvania lieutenant-governor John Fetterman flips the seat from Republican to Democrat. Meanwhile GOP Senate candidate for Georgia Herschel Walker urges voters to remain patient. NBC News estimates that Republicans will take control of the House of Representatives with a projected win of 219 seats. An NBC poll finds that the cost of living and abortion rights topped voter concerns. Meanwhile two-thirds do not want President Biden to run for a second term. In crypto news, FTX’s coin crashes with more than $2bn wiped out. Rival Binance has swooped in for FTX’s non-U.S. business.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

New Twitter CEO Elon Musk has urged independent voters to back GOP candidates in the mid-term elections while Donald Trump has hinted he will put his name forward for the presidential race in 2024. Wall Street has reacted ahead of the elections closing in the green for the second straight session. The Dow is up by more than 400 points. The EU has accused the U.S. Inflation Reduction Act of breaching international trade rules. German Finance Minister Christian Lindner tells CNBC that he is concerned about the Act’s consequences on European business. We are also live at COP27 in Sharm El-Sheikh where despite billions being pledged by world leaders, the impasse between ambition and execution on climate change remains vast. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Apple says that Beijing’s zero-Covid policy is damaging production of its most popular mobile phones. Chinese exports and imports contract for October, simultaneously shrinking for the first time since May 2020. Octobers non-farm payroll data beats expectations. However, the Dow breaks a four-week winning streak on rising rate concerns. Richmond Federal Reserve President Thomas Barkin tells CNBC prices still have some way to go. In tech news, thousands of Twitter employees are fired as part of Elon Musk’s overhaul of the social media giant. The company will launch its blue tick subscription service reportedly after the U.S. mid-term elections. We are also live at COP27 in Sharm El-Sheikh, Egypt where IMF managing director Kristalina Georgieva tells CNBC that higher fuel prices are accelerating adoption of greener energies.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Bank of England hikes interest rates to a historic 3 per cent – the largest jump in 30 years. Governor Andrew Bailey has told CNBC the MPC’s move was needed despite the threat of recession. U.S. equities are in the red as investors brace for October non-farm payroll numbers. They are expected to show employment activity decelerating to its slowest rate in two years. Chinese tech stocks rally on the Hang Seng amid reports of positive U.S. audits of Chinese companies and a potential relaxation of the country’s zero-Covid restrictions. Stateside, Twitter lay-offs are reportedly set to begin today following Elon Musk’s takeover of the social media giants. There are also job cuts expected at Lyft and Strip while Amazon freezes further hiring.  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 seeks to terminate market speculation of a pivot away from raising rate hikes. Powell said it was ‘premature’ to end the hiking cycle. Wall Street reacts by dipping into the red following earlier gains while Treasury yields edge higher. Service activity in China falls to its lowest level since May as Beijing’s strict zero-Covid policies continue to strangle the economy. We are live at Web Summit in Lisbon where Ukrainian First Lady Olena Zelenska tells CNBC countries must put aside national self-interest and continue assisting her country in its war against Russia.  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 dip as investors brace for a fourth consecutive 75bps rate hike from the Federal Reserve. HSBC CEO Noel Quinn tells CNBC he believes the U.S. central bank is close to it. Mainland Chinese markets add to yesterday’s big gains despite Beijing denying rumours it will soften its zero-Covid policy. Standard Chartered CEO Bill Winters says he is bullish that Chinese growth will return. The BoE sells up to £750m of UK government debt, becoming the first central bank to sell sovereign bonds back to the markets. And we are live at Web Summit in Lisbon where hot topics will include Elon Musk’s takeover of Twitter and U.S. regulators’ potential crackdown on TikTok.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Saudi Aramco posts a near-40 per cent surge in Q3 net income on the back of rising global prices. President Biden urges IOCs to use their record profits to help reduce prices for consumers. BP CEO Bernard Looney tells CNBC his company is already putting its windfall gains to good use. The Dow is slightly down but has posted its best month since 1976. Asian equities start the new month in the green. In China factory activity stalls as authorities increase Covid restrictions. The yuan is down to its lowest level since the GFC due to a weak midpoint setting. New Twitter CEO Elon Musk dissolves the board and sets aggressive targets amid upcoming job cuts at the social media giant.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Credit Suisse issues further details about its CHF4bn capital increase as part of its overhaul. Chairman of the Saudi National Bank, Ammar Al Khudairy, tells CNBC the Swiss lender must not hesitate in restructuring the bank. The Dow is on course to post its best month since January 1976 despite recent weakness in tech stocks. Chinese economic activity contracts for October as authorities ramp up Covid restrictions in key manufacturing and financial cities. And in Brazil, Lula da Silva narrowly wins the presidential election to edge out incumbent Jair Bolsonaro.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Elon Musk completes his $44bn takeover of Twitter and immediately fires CEO Parag Agrawal and CFO Ned Segal and confirms the acquisition by tweeting ‘the bird is freed’. Big Tech suffers an almost $800bn loss to its market cap as investors flee the sector on the back of underwhelming earnings, weak forecasts and spiralling costs. Amazon and Apple earnings are also due to today. The e-commerce giant offers a weak outlook ahead of the Christmas season while Apple misses on iPhone sales. In forex news, the euro nears parity against the dollar as the ECB raises rates by a further 75bps. President Christine Lagarde says the central bank’s job to calm inflation is still incomplete.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Credit Suisse posts a larger-than-expected Q3 loss. The lender unveils a turnaround plan which includes restructuring its IB unit and cutting costs by 15 per cent. Chairman Axel Lehmann has admitted the bank has been ‘unfocused’. The ECB is expected to raise rates by a further 75bps which would place them at their highest level since 2009. Facebook parent company Meta sees shares freefall by almost 20 per cent in extended trade. CEO Mark Zuckerberg’s move to build the ‘metaverse’ platform has so far failed to attract investors. And staying in Silicon Valley, Elon Musk is on the verge of purchasing Twitter with the finishing touches being applied by banks to financing deals.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asia-focused bank Standard Chartered beats expectations, posting a 40 per cent jump in Q3 profit on the back if rising rates. Spanish lender Santander see net quarterly profit of €2.4bn. It says it is confident it will hit its full-year targets. Declining ad revenue causes Google parent company Alphabet to miss on its top and bottom lines for the third straight quarter. Microsoft shares are down despite beating estimates. It warns that its cloud business is experiencing a marked slowdown, posting its smallest revenue growth in 5 years.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

UBS suffers a 24 per cent drop in net profit but an improvement in net interest income as the bank navigates macro-economic headwinds going into the fourth quarter. HSBC posts a better-than-expected Q3 earnings despite rising impairments. Rishi Sunak becomes UK prime minister urging the Conservative party to ‘unite or die’. In tech news, Chinese tech loses $55bn on a single day on Wall Street as investors signal concerns about President Xi Jinping’s unprecedented third term.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

China GDP comes in short of Beijing’s official GDP data with Covid lockdowns affecting growth. President Xi Jinping consolidates his grip on power ahead of a third term in office. In the UK, former chancellor Rishi Sunak is set to become prime minister as soon as today after Boris Johnson withdraws his candidacy. In Italy, Giorgia Meloni is sworn in as prime minister to create the most right-wing cabinet wince WW2. Wall Street posted its best trading week since June amid reports that some Fed officials plan smaller interest rate hikes in the coming months.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.