Squawk Box Europe Express

A last-minute commitment to phase down the use of coal at Cop 26 in Glasgow has been undermined by China and India, both of whom say the use of fossil fuels is key to economic growth. Unexpectedly strong retail numbers in China boost October consumer data, while industrial output for the month was also higher. U.S. President Joe Biden and Chinese President Xi Jinping are set to hold their first meeting, albeit virtually, with Taiwan expected to be central to talks. Meanwhile, violence broke out in the Netherlands where a three-week partial lockdown has been implemented while in Austria, unvaccinated residents have been ordered to stay home.   

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COP26 enters its final day with countries yet to agree on a 1.5°C limit to global warming. The UN’s Secretary General says the goal is on ‘life support,’ while COP President Alok Sharma warns time is running out. Presidents Xi and Biden will reportedly meet virtually on Monday—right as the U.S. President ramps up restrictions on Chinese tech. EV maker Rivian is now worth more than General Motors, with shares soaring another 22% two days after going public. Tesla CEO Elon Musk takes a shot at his new rival. Meanwhile, Belarus threatens to turn off Europe’s gas supplies, amid an escalating migrant crisis at its western border.

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U.S. consumer prices rise at their fastest pace in over 30 years in October, jumping 6.2% and pushing yields higher, while major indices close in the red. Disney shares drop after the bell, as the House of Mouse reports lower Disney+ subscribers than expected, and posts its first earnings miss since the beginning of the pandemic. But, CEO Bob Chapek reaffirms his guidance and expansion plans to CNBC. Plus, the world’s two biggest carbon emitters come together at COP, as China and the U.S. announce a surprise plan to boost climate cooperation and cut emissions. And earnings season continues. Siemens tops sales and orders expectations for the fourth quarter, as the German corporate giant proposes a dividend of €4 a share. Zurich Insurance reaffirms its 2022 targets as it reports strong momentum across all business segments, and a strong capital position.

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China's factory gate prices hit a record high in October, inflated by rising raw material costs and continued supply chain concerns. U.S. producer prices also hit record levels, as attention turns to the crucial CPI data due today - while the Fed's James Bullard tells CNBC, exclusively, that the central bank is positioned to hike rates next year if needed. Rivian prices its IPO above the range, valuing the EV-maker upwards of $66 billion ahead of its Nasdaq debut. Meanwhile Elon Musk loses $50 billion in two days as Tesla's stock drops another 12%, amid the continued fallout from his Twitter poll on cashing out. And it's a busy day for earnings in Europe, with Siemens Energy, Allianz, Adidas, Ahold Delhaize, and Infineon all reporting.

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The S&P breaks 4,700 for the first time, and the major indices close at record highs as infrastructure stocks pop on the back of President Biden's big spending bill. But Asian shares are mixed Tuesday, despite a surge in Softbank, after the group yields to investor pressure and unveils a $9 billion stock buyback. Crypto surges, with heavyweights Bitcoin and Ether both hitting new all-time highs ahead of a major Bitcoin software upgrade next week. The Netherlands joins a COP26 commitment to end public financing of fossil fuel projects, but some motor giants hold out on signing a deal to end new car emissions by 2040 - as former U.S. President Obama urges more action. And Euronext cuts ties with the London Stock Exchange for its clearing operations, saying it will clear all trades on its newly acquired Italian platform by 2024.

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President Biden's $1.2 trillion infrastructure bill passes the House of Representatives after months of political infighting, with a vote on the larger 'Build Back Better' bill in the days ahead. Wall Street hits record highs, as investors cheer a massively improved jobs report. But a slump in tech valuations across Softbank’s Vision Fund pushes it into the red for the second quarter, as the Japanese conglomerate posts a net loss of $3.5 billion dollars. Berkshire Hathaway's cash pile hits a record high, despite aggressive buybacks, and as third quarter operating profit jumps 18-percent on a continued recovery in its railroad, utilities and energy businesses. China posts a record trade surplus, as exports surge more than expected - with year to date exports now exceeding those for the whole of last year. And Engie enters exclusive talks with Bouygues over a 7-billion euro sale of its energy services unit, as the French energy group continues its shift to renewables.

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Bank of England Governor Andrew Bailey hits back at criticism the central bank mislead markets after the surprise decision to keep rates on hold, telling CNBC the central bank hasn’t ever said it would raise rates this month. US jobless claims hit a fresh pandemic-era low, as attention turns to the nonfarm payrolls report, with 450,000 jobs expected to be added. OPEC+ nations dismiss US pressure to turn on the taps - rolling over the August production plan despite a surge in crude prices. And as the first week of COP26 draws to a close in Glasgow, negotiators are cheering progress on cash, coal, methane and trees.

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The Federal Reserve says it will start tapering its massive Covid-era stimulus programme and to slow bond-buying from this month. However, a rate hike is not on the cards. Meanwhile, the Bank of England is potentially willing to raise rates in the face of surging inflation, but the MPC vote is likely to be split with some members pushing to delay the move until December. A couple of big European lenders came out with results. Credit Suisse warned of a Q3 net loss, announcing a new group strategy, splitting the business into four separate divisions. And, Société Générale has had a surprise change of CFO as the French lender saw third quarter profits soar by 80 per cent amid a waning cost of risk. 

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President Joe Biden slams Chinese President Xi Jinping’s decision not to attend the Cop26 climate summit and says that no date has yet been set for the pair to meet. We hear from BlackRock CEO Larry Fink, who says that the private sector risks ‘massive market arbitrage’ should it not catch up with public sector action on climate change. The Fed inches closer to tapering as markets hold at fresh highs. UBS chairman Axel Weber tells CNBC he’s not concerned about central banks taking action to anchor inflation expectations. Meanwhile, China’s services sector shrugs off inflationary pressures to grow in October off the back of rebounding demand. And in tech news, Facebook scraps its facial recognition system and also deletes a billion users’ online data.  

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More than 100 nations attending the Cop26 summit in Glasgow have signed up to a deforestation pledge. We hear from U.S. climate envoy John Kerry who says negotiations so far have been ‘encouraging’. India’s Prime Minister has made one of the first major commitments of the conference, vowing to take his country to net zero emissions by 2070. Meanwhile, we have quarterly results from Standard Chartered and BP and we are also live at the Web Summit in Lisbon where Facebook whistleblower Francis Haugen has called for CEO Mark Zuckerberg’s resignation.  

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