Squawk Box Europe Express

Rising commodity prices weigh on China’s post-pandemic economic recovery with factory gate prices beating expectations, going up 9 per cent. The U.S. Senate inches towards passing the largest infrastructure spending bill in more than a decade. A couple of big earnings reports are in focus. On Wall St., Warren Buffett buys back a record $25m of Berkshire Hathaway stock after posting a 21 per cent in Q2 income. In the energy sector, Saudi Aramco is set to increase supply capacity after second quarter earnings surged by 288 per cent. However, crude is down on concerns of a drop in demand.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The S&P 500 hits a new record high on positive U.S. jobs numbers and redundancies fall to a two-decade low. Bank of England Governor Andrew Bailey tells CNBC that policy will be modestly tightened over the next few years as the balance sheet is reinforced to weather any future crises. In the U.S., President Biden signs an executive order calling for at least 50 per cent of all American cars and trucks to be electric by 2030. In South Korea, mobile-only lender Kakaobank has listed to become the country’s biggest retail bank. 

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Some major earnings misses and a disappointing private sector jobs report in the U.S. weigh on the S&P 500 and Dow, and Fed vice-chairman Richard Clarida says price rises may delay a hike in rates until 2023. Italian bank Intesa San Paolo plans a €3.3bn dividend as it reports shrinking loan losses amid the pandemic recovery. Uber records an earnings beat but losses widen as the ride-hailer spends big on driver incentives. And, from the platform to the object - Robinhood becomes a meme stock in its own right, closing 50 per cent higher in yesterday’s session.  

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The S&P 500 hits a new record high, shrugging off concerns about the spread of the Delta variant in the U.S. as the White House advances its vaccination drive. The head of the U.S. SEC has called on Congress to clamp down on the ‘Wild West’ of cryptocurrency markets. In autos news, Toyota sees net profit soar by 500 per cent and it reaffirms FY guidance. Service sector growth in China picked up last month but new outbreaks in the south of the country could undermine economic recovery. And oil prices remain steady despite reports of a potential tanker hijack by Iranian forces in the Gulf of Oman.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Standard Chartered announces it will be resuming its interim dividend and buy back $250m of shares after H1 profits soared by 60 per cent. French lender Société Générale reports €1.4bn net income for the second quarter. Delta variant spikes in the U.S. weigh on markets Stateside. We hear from the Fed’s Christopher Waller who says the economy is ready for tapering. And in China, online gaming stocks fall after state media attacks the industry as ‘spiritual opium’. 

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

It’s another big day of earnings on both sides of the Atlantic. E-retail titan Amazon misses quarterly revenue forecasts for the first time in three years, warning that the slowdown is set to continue. Cosmetics giant L’Oréal is buoyed by make-up and perfume sales to reach a Q2 beat as economies re-open. Swiss building materials firm Holcim has posted record results for H1 and margins are up across all of its units. We also hear from Schneider Electric and SNAM. Unicredit is holding exclusive talks to snap up Banca Monte dei Paschi in a deal brokered by the Italian government. 

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

It’s Super Thursday for many European corporates, including Volkswagen, Shell and Diageo. Credit Suisse releases a scathing report following an internal investigation into the bank’s failure to manage risk in the wake of the Archegos scandal. The Swiss lender’s investment bank revenues plunge by 40 per cent. Meanwhile, Airbus is buoyant, raising its guidance for deliveries and operating income. In the U.S., Facebook shares fall in after-hours trading despite beating Q2 earnings expectations. The social media giant is braced for a significant growth slowdown. And in China, tech shares lift after a CNBC source reveals that Chinese market authorities have met with top investment banks to calm concerns following Beijing’s recent regulatory crackdown. 

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Apple smashes Q2 expectations with every product line hitting double-digit growth and Chinese sales soaring by 60 per cent. The stock, however, is down as CEO Tim Cook warns of continued semi-conductor shortages. Deutsche Bank swings back into profit despite reporting trading headwinds in the second quarter. We also hear from the CFO of Santander after the bank posts a €3.6 bn H1 profit and says it will outfperform its 2021 targets. Plus, Gucci products drive French luxury firm Kering, which has almost doubled its revenue. 

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Tesla posts a record second quarter profit with net income of more than $1bn. However, CEO Elon Musk admits that the global semi-conductor shortage is causing serious problems for the company. Luxury giant LVMH sees sales soar by 80 per cent as economies reopen. Louis Vuitton and Dior are the standout brands in the quarter. French tyre maker is upping its full-year guidance after a strong H1 sales but supply chains concerns still remain. And in China, food delivery platforms are targeted by Beijing in its ongoing regulatory crackdown on tech firms.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Major Chinese markets slump on the back of Beijing’s continuing regulatory crackdown, with billions wiped from tech, education and property stocks. After a volatile week, the Dow breaks through the 35k level. Investors await mega-cap tech earnings as well as the Fed rate decision later this week. In Germany, the continent’s largest real estate deal faces new uncertainty as Vonovia says it may fail to reach the 50 per cent acceptance threshold for its merger with Deutsche Wohnen. And there are widespread anti-vaccination passport demonstrations throughout France and Italy.  

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.