Squawk Box Europe Express

Chinese Q1 GDP growth soars by a record-breaking 18.3 per cent on the year but falls short of analysts’ expectations. Strong U.S. earnings have pushed the Dow over 34,000 for the first time. Retail sales are also up by almost 10 per cent and first-time jobless figures hit a one-year low. Daimler posts a surprise jump in Q1 earnings as it unveils its flagship electric car, the EQS. However, CEO Ola Källenius tells CNBC that the global chip shortage is weighing on sales. French cosmetics giant L'Oréal shrugs off lockdown effects through solid Chinese demand and strong online sales in Europe.

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

Cryptocurrency trading platform Coinbase closes a dramatic inaugural day on the Nasdaq below its debut price after rallying to more than $400 a share. U.S. earnings season kicks off with big beats for Wall Street banks. Goldman Sachs posts a record Q1 net profit and revenue number. Unicredit is set to formerly unveil Andrea Orcel as its new CEO today but his €7.5m pay packet remains controversial for some of the Italian lender’s investors. ABB raises its 2021 revenue outlook with sales rising in the first quarter.

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

Rare blood clot incidents force Johnson & Johnson to pause the use of their vaccine in the U.S. where health officials have scrambled to reassure the public. The safety concerns also have implications for the rollout of the dose throughout the EU where it has been temporarily stopped just 24 hours since deliveries began. U.S. equities mostly shrug off the news, with the S&P 500 hitting record highs, buoyed in part by tech stocks. As earnings season begins, German software giant SAP reports preliminary Q1 profit jumping by a third, prompting the firm to raise its revenue guidance. Credit Suisse is reportedly unwinding its Archegos-linked positions, putting large blocks of Discovery shares on the market. In luxury news, LVMH has beaten Q1 expectations on rebounding Chinese and U.S. demand.

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

China March exports rise by more than a third while imports come in at their fastest pace in four years. In Germany, the race to replace Angela Merkel as Chancellor heats up with the CDU’s Armin Laschet vying against CSU leader Markus Söder, who is pulling ahead in the polls. The U.S. is readying itself for key inflation data and first-quarter corporate earnings are also due, which weigh on Wall Street. President Biden holds a semi-conductor summit with CEOs and vows to provide federal support to companies hit by the global chip shortage. Intel boss Pat Gelsinger tells CNBC he is aiming to produce chips for the automotive industry in the U.S. by the end of the year.  

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

The race for the German chancellery heats up after the CSU chairman and Bavarian minister-president Markus Söder throws his hat in the ring against the CDU’s Armin Laschet. Party leaders are set to decide on their preferred candidates today. Federal Reserve chairman Jerome Powell has said that the U.S. economy is at an ‘inflection point’ despite pockets of recovery risk remaining. The Dow and the S&P 500 both hit new record highs on Friday ahead of the start of earnings season this week. In China, Alibaba shares surge despite the online retail group being slapped with a $2.75bn fine by Beijing regulators for violating the country’s anti-monopoly laws. And in tech news, Microsoft is to snap up speech-recognition technology firm Nuance for $16bn.

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

Federal Reserve Chairman Jerome Powell warns a CNBC IMF Spring Meeting panel that the pandemic will leave permanent scarring on the global jobs market but that an inflation hike will only be temporary. Vaccine access and recovery trajectories are also dominating the discussion. IMF managing director Kristalina Georgieva says that poorer countries must not be left behind. Australia acknowledges the rare blood clot cases recently associated with the AstraZeneca dose but stops short of an outright ban while revising its rollout and procurement strategies. In China, factory gate prices see their highest jump in two years. In tech news, Tencent-backed fintech company Linklogis leaps on its Hong Kong market debut, promising international expansion.

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

The UK has changed its guidance for the AstraZeneca Covid vaccine following reported rare blood clots. Younger recipients will now be offered an alternative dose but the British medical authorities say the benefits still outweigh any risks. The European Medical Agency has acknowledged a possible link between the vaccine and the side effects but has not age-restricted the jab on the Continent. In the U.S., the S&P 500 hits another record close buoyed by the Federal Reserve’s March minutes optimism about the country’s outlook. President Biden has indicated that he is willing to debate and compromise over his corporate tax plan with some reports suggesting that 25 per cent could be the best middle-ground figure.

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

CNBC launches Germany: Engine of Europe with the country’s finance minister Olaf Scholz telling the channel exclusively that Europe requires a streamlined and united front in tackling the COVID pandemic. The IMF raises its post-pandemic global guidance, saying that China’s response has driven growth but warns that asymmetrical vaccine rollouts will provide ‘daunting challenges’ ahead. According to CNBC sources, Morgan Stanley reportedly dumped $5bn in Archegos bets on the eve before the hedge fund’s fire sale. And in IPO news, a report suggests Goldman Sachs bought £74m of Deliveroo shares in an effort to support the stock price after its disappointing IPO.

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

Credit Suisse takes drastic action, axing 2 top executives, cutting its dividend, halting its share buy-back plan and slashing bonuses as the bank warns the Archegos fallout will cost $4.7bn. On Wall Street, a strong March jobs number and a service sector activity spike buoy the Dow and the S&P 500. U.S. Treasury Secretary Janet Yellen announces the Biden’s administration return to the world stage, calling for a minimum global corporate tax rate. In China the services sector continues to recover with the Caixin survey clocking activity at its highest level since December on increased hiring and consumer confidence.

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

U.S. President Joe Biden unveils his massive $2tn infrastructure programme, which promises millions of jobs as part of a “once in a generation investment”. However, he’s immediately facing resistance over the tax hikes required to foot the bill. As March closes, U.S. equities have marked out their fourth consecutive positive quarter. Meanwhile, China’s post-virus recovery seems to stutter with the Caixin PMI index falling to its lowest level for almost a year. OPEC and its allies lower their demand forecast ahead of a key meeting today, while the CEO of Saudi Aramco tells CNBC he's confident of meeting dividend payout expectations. And in France, President Macron finally imposes a strict third national lockdown in a bid to halt spiraling Covid-19 cases and increasing hospitalisations.   

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