Squawk Box Europe Express

Big bazooka…the U.S. Federal Reserve launches a round of emergency measures, cutting interest rates by 100 points to zero, initiating a $700Bn QE programme, which includes treasuries and mortgage-backed-securities purchases. It also injects additional dollars in a coordinated action with other central banks around the world. Chairman Jerome Powell says liquidity is the top priority in light of the volatility caused by the Coronavirus outbreak. The markets, however, are not convinced. U.S. futures plunge, hitting limit-down, as the Dow drops 1,000 points. Asian indices fare no better, despite additional measures by the Bank of Japan. Europe shuts down, with Spain quarantining its 46m citizens and France and Germany closing large parts of their economies and beefing up border security. Boris Johnson’s government is pressured to do more as President Trump’s travel ban is extended to the U.K. and Ireland as of tomorrow. And there is dismal data from China as industrial production and retail numbers coll

The worst session since Black Monday in 1987. The Dow sheds another 10% as the Fed's $1.5 tn cash injection fails to stem the declines. But US futures turn cautiously higher and Asian stocks come off session lows. In Europe, ECB President Christine Lagarde tells CNBC exclusively that fiscal policy should be the first front in the fight against the outbreak. Lagarde also rejects President Trump's branding of COVID-19 as a 'foreign virus'. France becomes the latest European country to shut schools, as President Emmanuel Macron pledges to do “whatever it costs” to prop up the economy against the virus outbreak. Airline shares across the world plunge deep into the red on the U.S.’s TransAtlantic travel ban, with European leaders pledging to support the region's hardest hit carriers.

A Transatlantic Travel Ban. President Trump bans travel between the U.S. and Europe and blames the Continent for 'seeding' virus hotspots in the States, sending US futures sharply lower. It’s the end of an 11 year bull run as the Dow pushes into bear market territory. This as the World Health Organization officially declares coronavirus a pandemic. Asian stocks follow suit, with the Nikkei falling more than 4 percent. Italy's lockdown tightens. The government closes all but essential services in the toughest restrictions since World War 2. And the pressure piles up on the ECB to act, with analysts predicting a mix of policy measures and rate moves to help the euro zone economy cope with the market shocks.

In a special edition of the Squawk Podcast, we bring you two parts of our 3 hour programme. Part 1: A whipsaw session as US stocks swing from a 900 point rally, to the brink of bear market, and back again, while Asian equities take a leg down amid unanswered questions over US stimulus. US Futures also trade lower after President Trump pitches a zero percent payroll tax rate, but his team fails to provide details on a promised fiscal package. EU leaders pledge decisive action to tackle coronavirus, announcing fresh investment and measures to prop up small business. Part 2: The Bank of England surprises markets with a 50 basis point cut, lowering interest rates from 0.75% to 0.25% and joining the Fed in delivering its first emergency move since 2008. The BOE warns that economic activity will weaken significantly due to the Coronavirus shock

Rebounding from a historic rout. U.S. markets come close to entering bear market territory after the Dow sinks 2,000 points as virus fears and an oil price war knock 5 trillion dollars from stocks. But crude prices bounce back from the worst day in almost 3 decades and US futures rise as President Trump teases potential stimulus including a payroll tax cut, ahead of meetings with congressional Republicans and Wall Street executives. Italy quarantines the entire country as Europe's fourth biggest economy becomes the largest outbreak outside China. Prime Minister Giuseppe Conte says it faces its 'darkest hour'. And finally Chinese inflation slows and factory prices fall as the virus continues to weigh on the economy, while fresh research points to a more than 50 percent plunge in monthly mobile phone sales.

Oil price war. Crude prices crash 30 percent in the worst day since the Gulf War, as Saudi Arabia floods energy markets, looking to punish Russia for obstructing OPEC-Plus output cuts. Asian stock markets plunge with the Nikkei hitting a 14-month low and Australia's benchmark index posting its worst fall since the financial crisis, while US futures trade limit down, pointing to another rough day on Wall Street. US 10-year treasury yields hit a new record low as the prospect of rates turning negative becomes a reality, while the 30-year yield goes below 1 percent for the first time ever. Over 16 million people are put into lockdown in Italy as the government takes drastic measures to stem the worst outbreak outside China. But leaks of the action cause confusion and a rush across regional borders. And finally women rally across the globe to mark International Women's Day, upping calls for equal pay and fair representation.

A week of swings… The Dow suffers another near-1,000 point drop, as Coronavirus fears take hold again while Asian equities move deeper into the red. The yield on the U.S. 10-year treasury falls to another record low, nearing 0.8 per cent. Bond king Jeffrey Gundlach tells CNBC the outbreak has put a fork in the economy and could tip the U.S. into recession. Oil prices slide despite OPEC's decision to make the biggest output cut since the 2008 crisis, if Russia gets on board. Secretary-General Mohammed Barkindo tells CNBC extreme circumstances warrant the move.

On the up… Chinese stocks hit a two-week high after the Dow surges more than a thousand points boosted by healthcare stocks and Joe Biden's strengthened bid in the Democratic presidential race. The U.S. House of Representatives passes an $8bn emergency funding bill to combat COVID-19, while the IMF sets aside a $50bn aid package, as managing director Kristalina Georgieva warns global growth will slow this year. Oil prices start to rebound as Opec meets in Vienna, with Russia reportedly pushing back against Saudi plans to slash supply cuts even further. And in corporate news, troubled UK regional airline FlyBe goes into administration just two months after securing a controversial government rescue deal. Coronavirus is cited as adding to the carrier’s woes.

Emergency action: the Federal Reserve surprises markets with the biggest rate cut since 2008, but fails to lift sentiment. The Dow plunges nearly 800 points, while Asian stocks lack direction. But the emergency measure, designed to tackle the impact of the virus outbreak, sends the U.S. 10-year treasury yield below 1 per cent for the first time ever. The WHO warns the death rate of Coronavirus is higher than originally anticipated, adding that travel restrictions are not enough to contain it. The economic pain is detailed further as China's services sector records its worst month on record, plunging to just 26.5 and escalating a string of disappointing data. And in the U.S., Democrat hopeful Joe Biden eyes victory on Super Tuesday following early results but Bernie Sanders is forecasted to win in delegate-heavy California.

Bouncing back…Wall Street closes a turbulent day sharply higher, as the major indices roar back from last week’s sell-off. The Dow posts its biggest point gain ever, fuelled by a rally in Apple shares. Chinese stocks mostly follow suit, but the Nikkei fails to build on the rally. The ECB is the latest central bank to pledge support to mitigate the economic impact of Coronavirus, saying it is ready to adjust all instruments. The RBA becomes the first to act, cutting rates by 25 basis points to a record low and G7 finance ministers are set to hold an emergency call to discuss the crisis. We also preview the Super Tuesday showdown in the U.S. where one third of delegates are up for grabs. Joe Biden’s campaign is gaining momentum against frontrunner Bernie Sanders following endorsements from several more former Democrat rivals.  

China contracts…PMI numbers show factory activity nosedives in February but local stock markets are up, in anticipation of stimulus from the PBOC. We are live in Riyadh where we speak exclusively to the WHO director-general, Tedros Adhanom Ghebreyesus. He tells this channel that while the window for containing Coronavirus globally is narrowing, markets shouldn’t panic. Despite the outbreak death toll surpassing 3,000 and the first reported American fatalities, U.S. futures turn to the upside. In Italy, the government has announced it will pump €3.6bn into the economy to mitigate the impact of the virus and avoid a recession. And in corporate news, Nokia CEO Rajeev Suri has agreed to step down amid reports of a potential sale due to struggling profits at the telco giant.

Worst week…the Dow Jones plunges by more than 1,000 points into correction territory as Coronavirus fears rise. Global stocks look set to post their deepest losses since the 2008 financial crisis. Asian equities nosedive in Friday’s session and U.S. futures point lower once again, while the market’s volatility gauge, the VIX, is on track to make its second-biggest weekly jump in history. The outbreak also fuels expectations the Fed could ramp up easing measures, with investors predicting at least three rate cuts this year, sending the dollar sharply lower against the euro. But a major takeover is forged despite the sell-off, as German industrial titan ThyssenKrupp agrees to shed its elevator unit to a private equity consortium for more than €17bn - the biggest buyout in Europe since 2007.

The Nikkei leads the Asian sell-off after the Dow fails to hold onto gains amid rising Coronavirus fears. American health authorities confirm a first potential ‘community-spread’ case in northern California and the number of fresh Coronavirus cases reported outside China tops those reported in the country for the first time. President Trump plays down fears of a global pandemic and puts Vice-President Mike Pence in charge of his administration’s response. In Germany, however, the reaction is more urgent with health minister Jens Spahn urging state health authorities and employers to brace for a possible accelerated outbreak in the federation. In corporate news, Standard Chartered posts a 46 per cent jump in full-year profits but says that meeting its 2020 targets will be hindered by slowing global growth as well as the Coronavirus. We speak to the Asia-focused lender’s CEO, Bill Winters, on set. We are also live in Zurich where LafargeHolcim cites ‘solid’ Chinese performance for its record net full-

Pandemic panic. The Dow Jones suffers its worst two-day points loss in history with $1.7tn wiped off U.S. stocks. Fears of a global Coronavirus outbreak balloon with new cases reported in previously unaffected European countries and U.S. authorities warn a pandemic is likely, telling Americans to prepare for a possible 'community spread' of the infection. Investors head for safe havens and virus fears plunge the U.S. 10-year T-note to an all-time low. Shares across Asia follow the sell-off, but U.S. futures look to bounce back.We speak to the best and brightest in the private equity world at the SuperReturn International conference in Berlin, as the industry’s returns underperform a major U.S. stock index for the first time. And it’s another big earnings day in Europe with numbers from mining giant Rio Tinto, French carmaker PSA, consumer goods conglomerate Danone and healthcare group Alcon.

Bouncing back from a Wall Street sell-off. The Dow Jones nosedives by more than 1,000 points or 3.5 per cent – it’s worst single-day fall in two years – as fears of a global Coronavirus pandemic grow. The Nikkei follows suit but U.S. futures point to a rebound Stateside after American biotech firm Moderna sends the first batch of its Coronavirus vaccine to U.S. government researchers. The rapidly developed drug will start human trials at the end of April. Oil prices also rise slightly following a near-four per cent slump and gold pares gains after a safe-haven stampede saw the metal hit a seven-year high. We speak to the Saudi oil minister live, who tells us he is unconcerned about the impact of the virus. We also get the latest from Italy, as the north of the country remains on lockdown due to the outbreak and the Italian stock market suffers its worst day since the Brexit vote. Finally, we discuss the impact on corporate earnings, after billionaire investor Warren Buffett tells CNBC that the sell-

Italy on lockdown… almost a dozen cities across Lombardy and Veneto are quarantined by authorities in a bid to quell the largest outbreak of Coronavirus seen outside Asia. The virus dominates discussions at the G20 in Riyadh, Saudi Arabia, with U.S. Treasury Secretary Steven Mnuchin exclusively telling this channel that the economic impact of the virus will not be apparent for another month. Meanwhile the IMF has pared back its Chinese and global growth forecasts and French finance minister Bruno Le Maire tells CNBC that his country is already counting the cost of reduced tourist footfall as a direct result of the outbreak. And in corporate news, Unicredit denies CEO Jean-Pierre Mustier will be leaving for HSBC and will remain to focus on the Italian lender’s new 2023 strategy.

Fears remain… Wall Street closes in the red on global coronavirus concerns but Chinese shares are higher as Beijing insists that its key manufacturing provinces are rapidly coming back online. Federal Reserve vice-chairman Richard Clarida claims the U.S. economy looks to be in good enough shape to ride out the outbreak but says the central bank is continuing to monitor the situation. EU leaders have been locked in overnight negotiations over the bloc’s next budget. Commission president Ursula Von Der Leyen tells this channel that modern climate and digital policies must feature in the agreement. And Unicredit’s CEO Jean-Pierre Mustier is reportedly set to take over from Noel Quinn at the head of HSBC amid a huge personnel overhaul at Europe’s largest bank. We also have earnings from Valeo, Allianz and Pearson.

All change at UBS… Sergio Ermotti steps down as CEO to be replaced by ING boss Ralph Hamers in November. In the U.S., the S&P 500 and Nasdaq hit record highs and Chinese stocks follow suit to the upside. The Coronavirus crisis prompts the PBOC to cut its benchmark lending rate to help mitigate the economic impact of the outbreak. The White House’s acting chief of staff, Mick Mulvaney, voices concerns that the U.K.’s decision to allow Huawei to launch its 5G network may have ‘direct and dramatic’ consequences on intel-sharing between London and Washington. Staying in the U.S., Michael Bloomberg is attacked from all sides in the Democratic primary debate in Las Vegas for his record while mayor of New York. And it’s a bumper day of European earnings, with numbers from Schneider Electric, Swiss Re, Air France-KLM and more.

Asia rebounding: equities across the continent trade higher as China reports a slowdown in the increase of Coronavirus cases, and Japanese exports fall less than expected. In the U.S., Apple closes almost 2 per cent lower after its revenue warning, dragging on the Dow Jones, but the Nasdaq ekes out another record close. The outbreak is already causing havoc for Jaguar Land Rover with the auto maker resorting to flying parts out of China in suitcases. CEO Ralf Speth tells this channel that his supply chain will be under threat in a fortnight. And in an NBC/WSJ poll, Bernie Sanders is in the lead in the Democratic primary race with Michael Bloomberg increasing his figures. The billionaire media tycoon has said he would sell his company if elected president.  

A shock warning… Apple says it will fail to meet quarterly revenue guidance, as the coronavirus outbreak disrupts iPhone sales and weighs on demand. Asian Apple suppliers sell off, dragging on the broader equity markets. HSBC says 35,000 jobs will be lost over the next 3 years amid the lender's strategy overhaul. The bank's shares see red in Hong Kong after full-year profit misses expectations, falling 33 per cent. In commodities news, strong iron ore prices help lift half-year profit at BHP but the miner still posts a slight miss, as CEO Mike Henry tells CNBC the coronavirus impact has been limited. In Italy, Intesa Sanpaolo makes a nearly €5bn bid for UBI Banca, which could create the eurozone’s seventh-largest bank. And Facebook’s CEO Mark Zuckerberg is in Brussels where the EU’s industry commissioner saying the social media giant must adapt to the bloc’s rules rather than the other way around.