Squawk Box Europe Express

Turkey gets sanctioned. The U.S. imposes immediate penalties on several Turkish ministers and slaps Ankara with a 50 per cent tariff on steel , demanding a halt to its military incursion into Kurdish-held northern Syria. We are live in Istanbul for the latest. U.S. stocks slip and oil prices extend losses as questions arise over the U.S.-China trade deal, despite U.S. Treasury Secretary Steven Mnuchin telling this channel that the first phase of the pact is ‘quite substantial’. China's September producer prices fall at their fastest pace in three years, while pork prices surge nearly 70 per cent pushing food prices higher. And it’s crunchtime for the U.K. and the EU. Brexit negotiators have battened down the hatches and entered so-called ‘tunnel talks’ ahead of a key summit later this week. The EU’s chief representative Michel Barnier says a deal this week remains possible.

Trade deal light – Asian stocks follow the U.S. into the green after a tentative truce is agreed between Washington and Beijing. President Trump hails the progress but critics suggest concessions have been made to China. Meanwhile, data reveals Chinese imports and exports fell more than expected in September. We are live from Westminster at the start of a crucial week for Brexit, after the UK and EU admit that a lot of work still needs to be done to reach a withdrawal agreement ahead of a key summit in Brussels. The Queen will outline the government’s plan in her speech at the state opening of parliament today. And in Syria, the U.S. pulls out its final troops from the north as a Turkish cross-border incursion rages. Humanitarian concerns over the operation have prompted President Trump to threaten Ankara with ‘powerful’ sanctions.

Trade deal optimism fuels a rally as high-level talks between the U.S. and China get underway and President Trump hails the progress ahead of a planned meeting with Chinese Vice-Premier Liu He later today. In the U.K., sterling jumps to a two-week high against the dollar after Irish Taoiseach Leo Varadkar said he saw a ‘pathway’ to a Brexit deal following positive talks with Prime Minister Boris Johnson. In corporate news, SAP CEO Bill McDermott announces his plans to step down following a decade at the helm of the German software titan. New co-CEO Jennifer Morgan tells CNBC that the time is right for a change of leadership. And luxury German fashion group Hugo Boss revises its full-year outlook for the second time this year citing weak U.S. sales and the ongoing anti-government protests rocking Hong Kong.   

Tit-for-tat becomes tittle-tattle… conflicting messages plague the progress of the U.S.-China trade talks, set to resume today. Asian equities and U.S. futures hold steady after sources tell CNBC that reports talks have collapsed are false. But the Federal Reserve’s September meeting minutes show that trade war concerns continued to weigh on the minds of board members when they voted to cut rates last month. Turkey launches an incursion against Kurdish forces across Syria’s northern border after President Trump’s weekend decision to move U.S. troops out of the region. And in corporate news, luxury goods giant LVMH posts better-than-expected third-quarter numbers in Europe and the U.S. but also in Asia, despite the impact of the Hong Kong crisis.

Restricted and blacklisted. Asian stocks dip following a sharp plunge on Wall Street after the U.S. administration slaps visa restrictions on Chinese officials for alleged human rights abuses of Xinjiang Uighurs ahead of trade talks tomorrow. The move comes one day after Washington blacklisted 20 Chinese entities, drawing a harsh response from Beijing, which has called on the U.S. to stop interfering in its affairs. Meanwhile, Federal Reserve chairman Jerome Powell says the Fed will grow its balance sheet but cautions that the move should not be confused with the large-scale quantitative easing the central bank resorted to after the financial crisis. In the U.K., the pound slides following suggestions by No.10 that Brexit talks with Brussels are on the verge of collapse. The Irish Taoiseach Leo Varadkar says a deal is highly unlikely ahead of next week’s EU leaders’ summit. We are live in Luxembourg for the Euro Zone finance ministers' meeting.

The charm offensive ends. The Hong Kong Exchange drops its 39 billion dollar bid for the LSE, admitting it failed to convince the London bourse of its ‘strategically compelling’ vision. Asian stocks rise ahead of U.S.-China trade talks later this week, even as Washington blacklists more Chinese firms ahead of a new flashpoint between the two countries after an NBA official sends a tweet in support of the Hong Kong protesters, which is met with a cold response in China. In tech, Samsung beats estimates despite signaling a 56 percent fall in third-quarter profit, while guidance suggests a turnaround is on the way for memory chip prices. And further job cuts for Thyssenkrupp as it is set to reveal a restructuring plan with new CEO Martina Merz presenting her proposals at a leadership meeting today.

The Dow jumps more than 350 points after the jobs report puts the economy in a sweet spot, but it's a cautious trade in Asia as investors eye high level U.S.-China trade talks due to restart this week. A report suggests Beijing is looking to narrow the scope of the deal. HSBC is reportedly set to slash up to ten thousand jobs as the lender looks to cut costs under new interim CEO Noel Quinn. It’s a calmer day in Hong Kong after anti-government demonstrations turn violent as tens of thousands protest against the city's use of emergency law, drawing their first warning from the Chinese military. And the French President Emmanuel Macron says the EU will decide on a Brexit deal by the end of the week, as UK Prime Minister Boris Johnson says the block shouldn't bet on a delay.

U.S. equities bounce back following two days of selling off, while weak economic data raises hopes the Federal Reserve will cut rates later this month. We look ahead to the jobs report for more signs. President Trump doubles down on his call for Ukraine to investigate the Bidens and urges China to look into the former Vice-President too, as the impeachment inquiry gets under way. In tech news, Facebook founder Mark Zuckerberg defends plans to encrypt the company’s messaging system as authorities in the U.S., U.K. and Australia say that the decision will put the public at risk. We are also live in Parma, Italy, to hear from the food industry ahead of a looming tariff tussle between the EU and Washington.

A new front opens…Washington escalates the trade war, this time hitting the EU with tariffs on up to $7.5bn worth of goods. The U.S. plans to impose a 25% levy on a range of European products, including French wine, Italian cheese and Scottish whisky. The moves comes after the WTO ruled against the EU in a 15-year-old dispute judging the bloc’s subsidies to plane makers Airbus and Boeing to be illegal. President Trump hails the win but trade tensions and weaker-than-expected U.S. jobs numbers trigger a global stocks sell-off, causing the weakest day of trade on Wall Street in six weeks. In the U.K., Prime Minister Boris Johnson sets out his final proposal for a Brexit deal, including Irish backstop concessions but the reaction from the EU remains mixed. We are live in Brussels for the latest reactions.

An October fright: global stocks see red and the Dow wipes out all of its third-quarter gains on the opening day of Q4 after U.S. manufacturing activity hits a decade-low. In the U.K., Prime Minister Boris Johnson is set to reveal his final Brexit ultimatum to the European Union, ruling out asking for any extension should Brussels turn down his offer. Hong Kong experiences further unrest overnight following the police shooting of a teenaged pro-democracy demonstrator. The violence is some of the worst the Special Administrative Region has seen since anti-Beijing protests erupted 17 weeks ago. And in Silicon Valley, Facebook founder Mark Zuckerberg has panned Democratic presidential hopeful Elizabeth Warren’s plans to break up large tech companies should she reach the White House, saying that he fancies his chances in any subsequent legal battle.

“Reputational damage” – Credit Suisse CEO Tidjane Thiam survives the spying scandal, but the bank’s COO resigns following an internal probe that finds he acted alone in ordering the surveillance of former wealth management chief Iqbal Khan. We report from Zurich as the lender apologises for the affair that has gripped the Swiss banking community. We are also live from Hong Kong and Beijing, where President Xi Jinping pledges peaceful development as China marks the 70th anniversary of the founding of the People’s Republic, while the Special Administrative Region braces for more mass pro-democracy protests. We speak exclusively to the boss of Deutsche Post DHL, as the logistics giant boosts investments despite the economic slowdown in air freight.  

Shares in AB Inbev’s Asia Pacific unit jump in its Hong Kong debut, in the second largest IPO of the year. On the city streets, protests turn violent, as police use tear gas and water cannons against anti-government demonstrators ahead of the 70th anniversary of Chinese communist rule. In the U.S., the whistleblower at the heart of the impeachment inquiry into President Trump is set to testify as early as this week. And in the U.K., with the threat of a no-deal Brexit looming, British Prime Minister Boris Johnson refuses to rule out leaving the EU without a deal, while health secretary Matt Hancock tells CNBC he would prefer an agreement.

Capitol Hill remains front and centre. A whistleblower report alleges President Trump abused his power in a call with Ukraine's leader, and that the White House tried to cover it up. We’re live in Kiev as the U.S. president once again denies any wrongdoing, while the House Intelligence Committee chairman says the complaint provides a roadmap of allegations that need to be investigated. China's industrial profits fall in August as the trade war with the U.S. continues to weigh on the economy. But CNBC learns that talks between Beijing and Washington are set to resume on October 10th. Huawei CEO Ren Zhengfei tells CNBC exclusively that the Chinese tech giant hopes to keep doing business with Google, but is biding its time on the U.S. blacklist. And not fit for purpose – shares in Peloton dive in the fitness start-up’s market debut.

Noted. The White House releases the transcript of the phone call between President Trump and Ukrainian president Volodomyr Zelensky, which reveal the U.S. president asked for help in investigating Democratic presidential candidate Joe Biden and his son over links to a Ukrainian energy company. We are live with the latest from Kiev as attention turns to the complaint from the whistleblower - expected to be made public today. U.S. stocks jump after Trump hints that a trade deal with Beijing could come sooner than expected while Washington signs a trade deal with Tokyo focused on agriculture, autos and digital. In the U.K., Prime Minister Boris Johnson returns to parliament since the suspension and is met by angry lawmakers demanding his resignation. And the ECB sees a high profile exit, as Sabine Lautenschlager quits from the central bank’s board over its latest easy money measures.  

Impeachment inquiry… U.S. House of Representatives Speaker Nancy Pelosi launches an official probe into President Trump over alleged abuse of power during a phone call with Ukrainian President Volodomyr Zelenskiy, saying “no one is above the rule of law.” The news sends the S&P 500 lower, with the index logging its worst day in a month, and garners a furious reaction from Trump who calls the move “witch hunt garbage”. He also promises to release a transcript of the conversation in which he is accused of seeking dirt on political rival, former U.S. vice-president Joe Biden. In the U.K., opposition leaders call on Boris Johnson to resign after the Supreme Court rules his suspension of parliament is unlawful, prompting the British Prime Minister to cut short his visit to New York. And in corporate news, office rental firm WeWork CEO Adam Neumann resigns in the face of shareholder pressure following his failed attempt to take the company public.

A long goodbye… Outgoing ECB President Mario Draghi says the bank is ready to cut rates again ahead of his final meeting next month. His successor, Christine Lagarde, tells CNBC she is concerned that on-going trade tensions between the US and China will hang over economic growth like a ‘big, dark cloud’. We are live in Westminster ahead of the U.K. Supreme Court ruling over Prime Minister Boris Johnson’s decision to prorogue parliament. And in corporate news, brewing giant AB Inbev raises $5bn for its Asian business in what is set to be the second-largest IPO of the year.

End of an era… UK travel company Thomas Cook collapses, sparking the biggest peacetime repatriation of British citizens in history. We have the latest from the chair of the Civil Aviation Authority. Oil prices surge as the U.S. sends additional troops to the Gulf further heightening tensions with Iran. We hear exclusively from Saudi foreign minister Adel bin Ahmed Al-Jubeir, who calls Tehran’s threats ‘ridiculous and laughable’. Asian stocks fall following shortened U.S.-China trade talks despite the Ministry of Commerce calling the negotiations constructive. And the Bank for International Settlements voices fears about negative interest rates. UBS chairman Axel Weber tells CNBC they are beginning to affect the investor environment.

The world’s top money managers and policymakers talk to CNBC at the exclusive Delivering Alpha conference. Vice-President Mike Pence tells CNBC that he hopes for a U.S.-China trade deal to come into fruition, but the days of U.S. economic surrender are over, as deputy-level talks resume in Washington. Hedge fund giants and asset management bosses like Leon Cooperman, Luke Ellis and Mary Callahan Erdoes warn that negative rates are hurting savers, defying the normal rules of economics and calling it the “most absurd thing” central banks have ever done. And in Germany, the government is in intense negotiations to agree on an extensive green investment program potentially worth €40bn.  

Blurred vision…Federal Reserve President Jerome Powell cuts rates by 25bps for only the second time in a decade. However, the central bank takes a more hawkish stance than markets expected and fails to give clear direction on future policy, revealing increasing divisions on the board. President Trump once again slams the Fed for its opacity and ‘lack of guts’. Over in Japan, the BoJ keeps rates steady but suggests it may provide new stimulus measures next month. Saudi Arabian authorities display debris they say was found at the scene of last weekend’s attacks on Aramco, while on a visit to the kingdom, U.S. Secretary of State Mike Pompeo calls the incidents tantamount to an act of war.

“Like a phoenix from the ashes” - Saudi energy minister Abdulaziz bin Salman seeks to calm oil markets, saying the kingdom's supply will be fully back online by the end of the month. We are live in Jeddah as crude oil extends its losses on the back of the Saudi government's assurances following the Aramco attacks. U.S. stocks rise ahead of a widely anticipated 25 basis-point cut in interest rates from the FOMC. A CNBC survey shows that more than 90 per cent of market participants expect further easing in December. But hopes of a trade deal between Washington and Beijing have been dealt a blow after President Trump suggested it may have to wait until after next year’s U.S. election. CNBC hears exclusively from House Speaker Nancy Pelosi who says a multi-lateral approach with Beijing would have been preferable. And we report from Israel, where there is no clear winner in the nation’s second election in five months.