Squawk Box Europe Express

Lift-off… Boeing flies the Dow Jones to a new record high. The planemaker posts its best day in five months on news that it will resume using its troubled 737 Max planes as soon as January. The unrest continues in Hong Kong with more violent scenes overnight. Protestors have converged on the financial district, bringing it to a standstill this morning. But trade news lifts sentiment, as multiple media reports suggest President Trump will delay a decision on European auto tariffs for another six months. Logistics and mail giant Deutsche Post DHL kicks off another busy earnings day, tripling its operating profit in the third quarter. It also forecasts a strong holiday season amid an e-commerce boom and growth in its freight division. We are also live at the ADIPEC summit in Abu Dhabi where the CEO of French oil conglomerate Total, Patrick Pouyanné, tells this channel that there is a hysteria attached to the issue of energy transition and climate change.  

Retail records…Chinese online giant Alibaba is set to smash last year’s Singles’ Day sales, already earning $23bn within the first nine hours of the event. We have the latest from Hangzhou. In energy news, Saudi Aramco has announced that it will sell 0.5 per cent of its shares to retail investors in its IPO but refuses to give a figure for the size of the eagerly anticipated listing, potentially the world’s largest. We hear more on the prospectus from the ADIPEC conference in Abu Dhabi. And we are also live in Madrid where there is no end in sight to the political deadlock after Spain’s fourth election in as many years.

U.S. stocks hit fresh record highs as investors ditch bonds amid renewed trade deal hopes, but uncertainty over progress on a U.S.-China agreement sends Asian shares down from a six month peak. In China, there’s a sigh of relief from the tariff-hit economy as October imports/exports fall less than expected. But trade jitters overshadow a meeting of European finance ministers in Brussels, despite Economic Commissioner Pierre Moscovici saying disputes among ‘friends’ can be resolved. In corporate news, Disney shares soar after the media giant beats Q4 expectations. CEO Bob Iger speaks to CNBC exclusively about the upcoming deals for Disney+ ahead of its launch next week.  

The global rally cools as CNBC learns the signing of the first phase of the trade deal between the U.S. and China may now be pushed back to December, with the terms and location still to be decided. The Bank of England is expected to keep rates on hold as the U.K. December election campaigns lurch into gear. Prime Minister Boris Johnson launches the Conservative offensive amid ministerial resignations and senior party member gaffes. In corporate news, Tiffany is reportedly urging LVMH to increase its bid, saying the $14.5bn offer seriously undervalues the luxury group. We also have a glut of German corporate earnings today, including Siemens, ProSiebenSat.1 and Munich Re.  

New peaks… the Dow and the Nasdaq hit fresh record highs but the rally fades in Asia, with investors waiting on further developments in U.S.-China trade talks. We hear from Société Générale CEO Frédéric Oudéa who remains bullish about the French bank’s outlook despite missing Q3 profit expectations. In Japan, Softbank Group eyes its first quarterly loss in 14 years following its bailout of corporate real estate start-up WeWork last month. CNBC speaks exclusively to JP Morgan CEO Jamie Dimon who says he’s learned the lessons from WeWork’s multi-billion dollar rescue package and its failed IPO. We are also live at Web Summit in Lisbon where Sky CEO Jeremy Darroch tells this channel that ‘subscription fatigue’ is setting in as competition ramps up in the streaming industry.

High Hopes…The Dow Jones, S&P 500 and the Nasdaq hit a fresh record high off the back of strong economic data and a renewed sense of hope surrounding the U.S.-China trade deal. The optimism is voiced by Chinese President Xi Jinping who calls for closer cooperation to solve global trade disputes at the opening of the China International Import Expo. There are also reports that Washington could be prepared to drop some tariffs to reach an agreement with Beijing. In corporate news, ride-hailing app giant Uber beats Q3 expectations but still reports a quarterly loss of more than $1bn. CEO Dara Khosrowshahi tells this channel he predicts the company will be profitable by 2021. And we are live at the Web Summit in Lisbon where we hear from Verizon executive vice- president Ronan Dunne. He says that the U.S. has what it takes to compete in the 5G arena.  

The waiting is over. Saudi Aramco finally launches its highly anticipated IPO, with a domestic listing set for December, but offers little detail about what could become the world’s largest public listing. A stronger-than-expected October U.S. jobs report helps the S&P 500 and the Nasdaq to fresh record highs while Asian stocks rally on hopes that a trade deal between Washington and Beijing is nearing. Hong Kong is left reeling after the 22nd consecutive weekend of pro-democracy protests which have become increasingly violent. Chinese state media demands authorities take a harder line to quell the unrest. In auto news, German chancellor Angela Merkel promises to install 1 million electric car charging points by 2030 while Volkswagen is set to unveil a key new electric model at its newly converted plant in Zwickau.

Nothing scary about Halloween for stocks. Chinese manufacturing data surprises to the upside on the first day of the new month with market sentiment rising across the continent as a result. Over in the U.S., the S&P 500 and Nasdaq both end October by posting near-record highs – their strongest monthly gains since the start of the summer. The anchors break down the month-to-date winners and losers, such as the European auto sector and the dollar index respectively. There’s further unrest in Hong Kong with police clashing with pro-democracy protestors ahead of another weekend of planned mass protests and disruption. As the Halloween Brexit deadline comes and goes, U.S. President Donald Trump offers his opinion on the upcoming U.K. election, predicting a Corbyn government would be disastrous for the country.

The S&P 500 hits a new record high following the Federal Reserve’s decision to cuts rates for a third time this year. Chairman Jerome Powell says the current monetary policy stance is now likely to remain on hold but should the outlook change the central bank would be ready to respond. In China, manufacturing contracts for a sixth consecutive month and the cancellation of the APEC summit in Chile next month dashes hopes of a trade deal between Washington and Beijing. In corporate news, Apple’s soaring wearables revenues help the tech giant beat Q3 expectations, offsetting a slump in iPhone sales. Facebook also beats expectations in the third quarter but the results are overshadowed by rival Twitter’s announcement it will ban all forms of political advertising across its platform. And there’s big movements afoot in the autos sector with the board of French car maker PSA approving a tie-up with Fiat Chrysler, potentially worth more than $40bn.  

Big bank earnings and a mega merger in the auto sector set the tone. Swiss banking giant Credit Suisse more than doubles net profit in the third quarter thanks to strength in its wealth management business. But German rival Deutsche Bank suffers a different fate as restructuring costs weigh on results, leading the lender to post a steeper than expected loss in Q3. Emerging markets focused bank Standard Chartered sees shares rise after it beats estimates with a 16 percent jump in third quarter profit. We speak to the CFO about the growing headwinds due to geopolitical tensions. In the autos sector, Italian-U.S Fiat Chrysler and French rival PSA are reportedly in talks to merge in a deal that would create a near 50 billion dollar car giant. And in the U.K., lawmakers back PM Johnson's call for a December 12th general election, in an effort to break the Brexit impasse.

Strong earnings and hopes of a U.S.-China trade deal drive the S&P 500 to a fresh record high, while investors bet on a third rate cut from the Fed later this week. In tech, Alphabet shares fall in extended trade after Google’s parent company misses Q3 profit estimates, as rising costs outpace a strong performance in ad sales. In the U.K., Prime Minister Boris Johnson loses his third attempt to force a snap election but vows to try again, while the EU agrees to a 3-month Brexit delay. Commerzbank shares close higher, as the German lender beats expectations with a surprise jump in quarterly profit, in results released ahead of schedule. And finally, Euro Zone leaders praise Mario Draghi’s vision, as he prepares to hand over the reigns after 8 years at the helm of the ECB.

Europe’s biggest bank HSBC warns of challenges ahead after reporting an 18 per cent plunge in third-quarter pre-tax profit. It missed expectations due to a weak performance in the European market but Chief Financial Officer Ewen Stevenson tells CNBC business in Asia is holding up despite the impact of the global trade disputes and unrest in Hong Kong. A 'mixed' picture for electronics group Philips in the third quarter, with margins still under pressure. CEO Frans van Houten tells CNBC the group moved too slowly to counter the effects of the U.S.-China trade war. LVMH goes after the little blue box in what could be the biggest M&A deal in Europe this year. The French luxury giant reportedly offered $14.5bn for U.S. jeweller Tiffany’s. In the latest Brexit development, Brussels is reportedly set to sign off on a three-month extension until January 31st, with the possibility of an earlier exit if U.K. Parliament ratifies the divorce deal.

Market cap wipeout…Amazon shares fall sharply in after-hours trading as the e-commerce giant misses Q3 expectations for the first time in two years due to one-day shipping costs. The tech conglomerate has also predicted a weaker-than-expected holiday season this year. It’s also a busy day for earnings from across the board in Europe. The world’s biggest brewer AB Inbev lowers its guidance, warning that tough market conditions will continue for the rest of the year after missing profit expectations in the third quarter. Kering sees strong growth in the third quarter particularly in Asia, which helps off-set losses incurred due to the ongoing democratic crisis in Hong Kong. And in politics, sterling recovers losses following Prime Minister Boris Johnson’s push for a general election on December 12th in exchange for granting lawmakers more time to scrutinise his Brexit deal.

Farewell Frankfurt…ECB president Mario Draghi prepares his final press conference before stepping aside for Christine Lagarde amid a backdrop of negative rates and weakening data in the euro zone. We are live in Frankfurt to look at his legacy. In corporate news, Tesla shares soar more than 20 per cent following a surprise Q3 beat but Ford slides and cuts its full-year profit forecast, warning of a slowdown in China. There's a similar story in the German automotive sector, where Daimler cuts the revenue outlook for its trucks division. Nokia lowers both its 2019 and 2020 profit guidance as the Finnish telco warns tough competition is squeezing margins. It also halts its dividend as it ramps up investments in 5G amid battles with rivals.Meanwhile on Capitol Hill, Facebook founder Mark Zuckerberg is grilled by the House Financial Services Committee over his company’s planned entrance into the cryptocurrency market.

Yes, but…U.K. lawmakers vote to approve Boris Johnson's Brexit deal, but reject a three-day timeframe to pass the bill, leaving it up to EU leaders to grant an extension to next week's October 31st deadline. We are live in Westminster and Brussels as both sides react to the latest stalemate. In China, plans are reportedly afoot to replace embattled Hong Kong CEO Carrie Lam following months of increasingly violent anti-government protests in the city state. ABB kicks off a busy earnings day for European blue-chips. The Swiss industrial group warns of weakening conditions in the U.S. and China, but sees net profit fall less than expected in the third quarter. We are also live in Frankfurt where Mario Draghi is set to oversee his final policy meeting as ECB president.  

Brexit block… House of Commons Speaker John Bercow denies Prime Minister Boris Johnson a straight yes or no meaningful vote on the Brexit deal he secured last week, saying that debating the motion would be ‘disruptive’. MPs will today debate the Withdrawal Bill being published by the government. In corporate news, Swiss lender UBS beats Q3 expectations on the bottom line but CEO Sergio Ermotti tells this channel that challenges persist for investment banking and wealth management. In the U.S., the S&P 500 falls short of its all-time high by just 1 per cent off the back of trade optimism and earnings. We also hear from Russia’s finance minister, Anton Siluanov, who tells CNBC that his country is not seeking to capitalise from damaged relations between Washington and Beijing. And in M&A news, this channel learns that Softbank is in talks to buy WeWork, valuing the workspace logistics provider at $7.5BN-8BN.

Brexit Bedlam…sterling dips following U.K. MPs’ Saturday delay to a vote on the deal struck by Prime Minister Boris Johnson and Brussels last week. The EU has received a forced extension request from No.10 but Johnson remains steadfast and is preparing to table another vote to get the divorce agreement through Parliament and ensure the U.K. leaves the bloc by October 31st. Lebanon is paralysed by a fourth day of massive anti-government protests as Prime Minister Saad Hariri rushes to push through a raft of economic reforms in a bid to quell the unrest. We are live in Beirut for the latest. Meanwhile, at the IMF annual meetings in Washington, we hear exclusively from UBS chairman Axel Weber who warns that central banks are increasingly losing their way, with negative rates causing despair among European investors.

Boris scores a Brexit breakthrough in Brussels. We host a special Brexit Endgame edition of Squawk Box, live from London, Brussels and Belfast. It is now up to Prime Minister Johnson to convince MPs to pass the agreement during an extraordinary parliamentary session scheduled tomorrow in order for EU leaders to officially ratify the deal by October 31st. However, he faces pushback from Northern Ireland where the DUP says it cannot abide by Johnson’s proposals due to serious concerns over customs and tax regulations. Elsewhere, China's third-quarter GDP grows at its slowest pace in almost 30 years, as weak factory production and an ongoing trade war weigh on the world's second-largest economy. And in corporate news, French automaker Renault has slashed its full-year revenue and profit forecasts citing weak sales outside of Europe.

Down to the wire... The U.K. and EU press on with last-ditch talks to try and secure a Brexit deal to present to leaders in Brussels. However, Northern Ireland’s DUP dashes hopes saying it cannot back the current proposal. We are live in Brussels for the latest on this fast-moving story. In the U.S., retail sales slump for the first time in seven months, increasing economic jitters. But on the trade front, Treasury Secretary Steven Mnuchin says that negotiators are working on the draft of a ‘Phase One’ trade deal with counterparts in Beijing. In corporate news, Netflix surprises to the upside, winning more subscribers than expected, while Facebook tries to convince the market its cryptocurrency Libra will ‘overcome problems’ once regulatory issues are resolved.

Burning the midnight oil – U.K. and EU negotiators hold talks in London and Brussels late into the night, appearing to edge closer to a last-minute withdrawal deal, but certain sticking points remain unresolved. In Hong Kong, vocal protests in the Legislative Council session itself force the territory’s Chief Executive Carrie Lam to deliver her policy address via video link. In Washington, the IMF warns that the U.S.-China trade war, a ‘synchronised’ global slowdown and ongoing geo-political uncertainty have prompted the fund to cut 2019 growth forecasts to the lowest level since the 2008 financial crisis. And on Wall Street JP Morgan soars after the lender smashes forecasts, but Goldman Sachs doesn’t fare as well, hit by losses from its investments in WeWork and Uber.