Squawk Box Europe Express

Squawk Box anchors discuss the upcoming race to fill the EU’s top positions, such as the Commission presidency, following the recent parliamentary elections. This could end up pitting France against Germany over the choice of president. Brussels is reportedly planning to take punitive action against Rome over Italy’s rising debt level but a defiant Matteo Salvini says that his Lega party’s strong EU electoral performance now gives it a mandate to change the bloc’s budgetary rules. Japan claims that it has not yet reached a trade deal with the U.S., as President Trump completes a four-day state visit to the country. And, reports suggest online retail giant Alibaba is considering a secondary Hong Kong listing valued up to $20bn following its first IPO in the U.S back in 2014.

Squawk Box anchors discuss the results of the European parliamentary elections with the centre bloc suffering a big blow from wins for Liberal, Euro-sceptic and Green parties. The euro, however, manages to parry the populist surge seen in the UK, France and Italy. Italian deputy prime minister and Lega leader Matteo Salvini hails the results, saying that Europe is changing. We are live in Westminster, Bremen and Turin with full analysis and a breakdown of the results. Meanwhile, U.S. president Donald Trump presses Japanese prime minister Shinzo Abe on the trade imbalance between the two nations during a four-day state visit. And Italo-American carmaker Fiat Chrysler and French counterpart Renault announce a mega-merger to create the world’s third biggest auto manufacturer.

Squawk Box anchors discuss the latest sell-off in U.S. stocks amid the ongoing fears about the US-China trade war, with the Dow braced for its fifth weekly drop and its longest losing streak for 8 years. The yield on the U.S. 10-year Treasury also plunges to 2017 lows amid the risk-off sentiment and oil dips nearly 6 per cent before clawing back losses. Meanwhile, President Trump suggests Huawei could be included in an eventual trade agreement despite branding the Chinese smartphone giant as ‘dangerous’. Secretary of State Mike Pompeo tells CNBC the tech giant is lying about its ties to the Chinese government. Deutsche Bank chairman Paul Achleitner survives calls to oust him as the troubled German lender warns of cutbacks during its annual shareholder meeting. And we are live in Westminster where word on the street is that UK Prime Minister Theresa May could be ready to tender her resignation amid a cabinet backlash over her latest Brexit deal proposal.

Squawk Box anchors discuss the on-going calls for UK Prime Minister Theresa May’s resignation as Commons leader Andrea Leadsom tenders her resignation from the cabinet over May’s new Brexit deal. We have reaction from Westminster. In the U.S., the Federal Reserve minutes reveal that rates will remain steady for the foreseeable future as inflationary pressures have subsided. CNBC learns from a top executive at Huawei that the Chinese telecom giant could be ready to launch its own operating system this year should it be barred from using Google and Microsoft’s platforms. And, U.S. chipmaker Qualcomm’s stock dives after a U.S. court rules that it violated anti-trust law by illegally suppressing competition.  

Squawk Box anchors discuss UK Prime Minister Theresa May’s last-ditch effort to get her Brexit deal through the House of Commons, offering lawmakers a variety of concessions, including the possibility of a second referendum. In the US, Wall Street bounces back after Washington offers Huawei a temporary reprieve, easing its restrictions as the Chinese smartphone maker launches new products in Europe. Chinese President Xi Jinping calls for a ‘New Long March’ amid on-going trade tensions with the US but also offers the prospect of a fresh round of negotiations. And, we are live in Westminster, Brussels and Bari ahead of the European Parliament elections. We hear from Italy deputy prime minister Matteo Salvini who brushes off suggestions his Lega party’s election campaign may have hurt his coalition government with the Five Star Movement.

Squawk Box anchors discuss Washington's reprieve for Huawei, as the U.S. government allows the Chinese smartphone maker to keep buying U.S. goods to maintain current networks and software for the next three months. Chip-makers and Asian equity markets have rebounded on the news, as it raises hopes of easing trade tensions between Beijing and Washington. U.S. Federal Reserve Chairman Jerome Powell has warned that business debt is on the rise but says the broader financial system is robust enough to weather the challenge. Speaking to CNBC exclusively, Atlanta Federal Reserve President Raphael Bostic says a rate hike is unlikely in the autumn. Staying in the U.S., the T-Mobile-Sprint merger gets the thumbs-up from the communications regulator but it now goes up before the DOJ. And, Silvia Amaro reports from Brussels, as Europe prepares to head to the polls in parliamentary elections in two days' time.

Squawk Box anchors discuss the overnight jump in oil prices following Opec and its allies’ joint decision to continue with further output cuts this year. Russian energy minister Alexander Novak tells CNBC the world’s top energy producers will continue to cooperate. President Trump says any conflict would be the “official end” of Iran, while Saudi Arabian oil minister Khalid Al-Falih warns the kingdom’s oil infrastructure is under threat from sabotage. Meanwhile, Huawei suppliers’ shares fall sharply following reports Google will restrict its business with the Chinese tech company, by stopping to supply the smartphone maker with key services. In Australia, equity markets soar to an 11-year high following incumbent’s Scott Morrison’s surprise election victory. And, Ryanair’s chief financial officer tells the team pricing will remain soft as the airline posts its weakest annual profit in 4 years.

Squawk Box anchors discuss the wild week in stock markets as the Dow looks on track to post its first 4-week losing streak since 2016. US chip stocks fall following Washington’s blacklisting of Huawei. Beijing, however, remains defiant, saying it will emerge stronger from the trade war. EU finance ministers weigh in on the current escalating US-China trade tensions, telling CNBC it is important not to increase barriers. Meanwhile, Turkey loses its preferential trade treatment by the US but sees tariffs on its steel exports halved. Tech giant Sony’s share price has soared more than 10% following its announcement that it is launching a ¥200BN share buyback scheme as well as signing a strategic partnership with Microsoft. And Amazon leads the latest funding round in U.K. food delivery company Deliveroo.  

Squawk Box anchors discuss the volatile moves in markets amid conflicting signals from the White House. U.S. stocks close higher amid signs of easing global trade tensions as sources tell CNBC President Donald Trump plans to delay auto tariffs by up to six months. But the U.S. President takes aim at China elsewhere, targeting Huawei with an executive order focused on banning telecom gear from 'foreign adversaries'. Foreign investors ditch Chinese stocks as the International Institute of Finance says the recent flare-up in trade tensions has triggered 4 billion dollars in outflows from mainland equities. And Publicis Chairman Maurice Lévy speaks to Karen Tso live in Paris, where world leaders and tech executives are meeting to address online violence and extremism following the terror attack in New Zealand in March.

Squawk Box anchors discuss the recovery in equity markets as U.S. President Donald Trump and the Chinese government downplay tensions in the trade war. The Dow posts its best day in a month as Wall Street recovers from Monday's sharp sell-off, and stocks across Asia rise. Tech shares help lead the rebound with Apple rising more than one and a half percent, as investors wait for earnings from Chinese giants Alibaba and Tencent. China posts a weaker than expected rise in April industrial output, while retail sales growth drops to a 16-year low. Shares in Commerzbank close sharply higher following a report that Italy's Unicredit is stepping up plans to bid for the German lender. On the earnings front, French lender Credit Agricole, Germany energy firm RWE and cement giant LafargeHolcim report numbers.

Squawk Box anchors discuss the massive sell-off in stock markets, after China retaliates in the trade war with the U.S, raising tariffs on $60 billion dollars worth of goods. The Dow tumbles 600 points, while the S&P 500 notches up its worst day since early January, losing more than one trillion dollars in market cap since May 3rd. Tech stocks lead the losses, as Beijing targets products such as cellphones and laptops, with Apple closing down nearly 6 percent, suffering its worst day since 2013. US bond yields fall amid speculation the Chinese government could sell its Treasury holdings, while the yield curve inverts as fears of an economic downturn rise. Bayer the one stock in focus after a California court orders the German chemical group to pay 2 billion dollars over claims its Roundup product caused cancer.

Squawk anchors discuss the deadlock in trade talks between the U.S. and China. Shares in Asia slip and US futures fall as China and the U.S. stand their ground over trade, casting doubt over the prospect of a deal to end the tariff war, as Washington hikes levies on 200 billion dollars worth of Chinese goods. U.S. Secretary of State Mike Pompeo addresses increased tensions with Iran in an exclusive interview with CNBC, saying the military ramp-up in the Persian Gulf is not raising the risk of conflict, but is aimed at changing the behavior of the Iranian leadership. Uber stutters in its widely anticipated debut, dropping over 7 percent to close well below its IPO price and sending shares in rival Lyft to a fresh low.

Squawk Box anchors discuss how, true to his word, President Trump has imposed 25 per cent of tariffs on $200bn of Chinese goods overnight as trade negotiations in Washington are set to resume for a second day. Chinese stocks have surged on Beijing’s promise to retaliate to Trump's move. Ride-hailing giant Uber has set its IPO price at the lower end of its range meaning it is valued at more than $75bn. And Amazon CEO Jeff Bezos is setting his sights on space with plans to send people to the Moon using his aerospace company Blue Origin, all within half a decade. There are also first-quarter results from Deutsche Post DHL and Telefonica. 

Squawk Box anchors discuss the continued slide in Asian stock markets following President Trump’s accusations that Beijing has reneged on trade commitments ahead of negotiations in the US capital today. Beijing has indicated it will retaliate against any increase in tariffs. Meanwhile, in Canada, lawyers for Huawei CFO Meng Wanzhou say that President Trump is deliberately attempting to link her extradition case to the trade talks with China. Disney profits soar off the back of strong performances from its theme parks and it announces its record-breaking Avenger: Endgame will stream exclusively on Disney Plus later this year. There are also first quarter earnings from Deutsche Telekom and Italy’s Unicredit. 

Squawk Box anchors discuss the US market impact of renewed trade war fears with the Dow plunging by 470 points- its worst day since the start of the year. The S&P and Nasdaq also post their biggest declines since March. The tariff threats are felt across the Pacific with China’s April trade surplus coming in well below estimates as exports dip unexpectedly and imports rebound. CNBC hears from DoubleLine CEO Jeffrey Gundlach who believes stocks are now in a bear market and that President Trump is likely to follow through on his threat to increase tariffs on Beijing. Back in the US, in its first report since going public, ride-sharing firm Lyft posts a large loss and drivers threaten a global walk-out over low pay in the run-up to Uber’s own IPO. On the earnings front, Siemens beats expectations as it also announces the spin-off of a gas unit, while high taxes weigh on Commerzbank, as net profit falls by more than 50% in the first quarter.

Squawk Box anchors discuss the latest escalation in trade tensions between the U.S. and China after Washington accuses Beijing of backtracking on its trade commitments. However, the Dow stages a major comeback and Asian stocks recover, as it’s confirmed that the next round of trade talks is still going ahead, with the Chinese delegation due to travel to the US, despite President Trump’s renewed tariff threats. Warren Buffett tells CNBC that markets have remained sanguine and warned of the perils of a trade war. And in Australia the dollar surges and stocks rise as the RBA decides to keep rates on hold at 1.5 per cent. On the earnings front, French infrastructure group Alstom, German consumer giant Henkel and one of the world’s biggest staffing companies, Adecco, report first quarter earnings.

Squawk Box anchors discuss the sell-off in equity markets amid heightening US-China tensions following President Trump’s sudden pledge to hike tariffs on $200bn of Chinese goods from this Friday. Asian stocks plummet and US futures point to a sharp decline on fears that Beijing could pull out of this week’s round of trade talks. St. Louis Federal Reserve President James Bullard tells CNBC that the central bank may have to rethink its rates strategy on the back of record employment levels. And in the UK, Prime Minister Theresa May urges Labour leader Jeremy Corbyn to come to a cross-party agreement on her Brexit deal.

Squawk Box anchors discuss a number of earnings from the big European banks starting with HSBC, which has posted a 31 percent jump in Q1 profits thanks to strong income growth in Asia and cost-cutting measures. French lender Societe Generale suffers a double-digit fall in net profit amid volatility in its corporate and investment bank. On the market front, oil stocks decline to a one-month low. Also in the US, President Trump’s second Federal Reserve board member choice Stephen Moore bows to political pressure to withdraw his candidacy while Berkshire Hathaway chairman Warren Buffett tells CNBC he has invested in Amazon shares.

Squawk Box anchors discuss the Federal Reserve’s decision to hold rates. US stocks slide after Chair Jerome Powell says low inflation is “transitory”, dampening prospects of a rate cut.In Beijing, US Treasury Secretary Steven Mnuchin boosts hopes of a US-China trade deal following talks yesterday. CNBC has learned that an agreement could come as early as next Friday. BNP Paribas Q1 net profits are up by more than a fifth off the back of better-than-expected revenues. The bank says it remains on course to hit its 2020 targets. Earnings for Dutch lender ING, Danish brewer Carlsberg and online retail giant Zalando are also released.

Squawk Box anchors discuss Apple’s stock surge in extended trading as dipping iPhone sales are offset by a demand in the tech giant’s services and the group issues an optimistic outlook. The S&P 500 hits another record, marking its best start to the year since 1987 and joining the Dow and the Nasdaq in its fourth positive consecutive month. President Trump urges the Federal Reserve to cut rates to further boost the US economy ahead of its policy meeting. Meanwhile in Venezuela, opposition leader Juan Guaido has once again urged the armed forces to rise up against a defiant President Maduro, sparking violent scenes in the capital Caracas. And we hear from the head of Saudi Arabia’s Public Investment Fund, Yasir Al-Rumayyan in Los Angeles on his company’s stake in Uber ahead of the ride-hailing giant’s IPO.