Squawk Box Europe Express

Unicredit CEO Jean-Pierre Mustier steps down after clashing with the Italian bank’s board over his restructuring plan and pressure to acquire Monte Dei Paschi Di Siena. OPEC members fail to reach an agreement on output which delays a meeting with other oil producers and pushes crude prices lower. Zoom shares dip in after-hours trading after the video app said that surging demand during lockdown has increased costs, offsetting its better-than-expected Q4 results.

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Manufacturing activity in China soars to its fastest rate in three years and services PMI hits an 8-year high. Meanwhile, the White House is set to blacklist Chinese chipmaker SMIC and oil major CNOOC for alleged ties to the Chinese military. This, as Congress is also looking to vote to tighten rules on Chinese companies seeking a U.S. market listing. Black Friday numbers are in Stateside, with online sales surging by 22 per cent to $9bn – the second-largest spending day on the web in American history. In M&A news, S&P Global is reportedly looking to buy London-based data firm IHS Markit for $44bn in what would be the largest merger of 2020.    

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Chinese industrial profits surge by almost 30 per cent in October as the manufacturing sector clocks its sixth consecutive month of growth since the pandemic. Hungary and Poland dig their heels in over ‘rule of law’ concerns to deny resolution over the EU budget and potentially delay recovery funds. Polish PM Mateusz Morawiecki warns member states they are threatening the break-up of the bloc. U.S. markets point to a calm open after Thanksgiving, despite President Trump claiming vaccine delivery for emergency workers and seniors can begin next week. Trump also said he will concede the White House if the Electoral College confirms its final results early next month.  

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U.S. markets see a Thanksgiving sell-off. Meanwhile, President-elect Biden’s call for people to observe Covid rules is met with a mass holiday travel getaway across the country. This, as rising jobless claims came in worse than expected. In Europe, ECB Vice-President Luis De Guindos has told CNBC that while bank profits on the Continent will be temporarily weak, the sector remains robust. UK markets closed lower yesterday following Chancellor Rishi Sunak’s spending review where he warned of an extended economic emergency. Britain’s GDP for 2020 is set for its biggest contraction in 300 years. And following Monday’s markets euphoria over the AstraZeneca/Oxford vaccine announcement, the head of the White House virus taskforce has now voiced doubts over the drug’s trial datasets. In M&A news, Salesforce is reportedly hoping to snap up workplace app Slack, pushing shares up by 20 per cent.  

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The Dow breaks the 30,000-point barrier for the first time ever with the index set to enjoy its best month since 1987. President Trump calls it “a sacred number”. Meanwhile, President-elect Joe Biden tells NBC the White House is sincere in its transition efforts and that the transfer of power will continue smoothly. In France, President Macron warns citizens to do everything possible to avoid a third Covid-19 wave as he outlines easing restrictions in the run-up to Christmas. UK Chancellor Rishi Sunak will unveil a £4.3bn spending plan to buffer mass unemployment as public borrowing hits levels not seen since WW2. And airlines around the world are likely to lose $160bn over 2020-21. We hear from the boss of IATA who says that not enough is being done to bolster the sector as it awaits mass vaccine rollouts.  

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President Trump gives ground, agreeing to provide assistance to the Biden transition team by instructing a Federal agency to brief and fund the incoming administration. Dow futures jump on the news and the Russell 2000 small-cap index hits a new record high. Former Federal Reserve chair Janet Yellen is widely tipped to become the first female U.S. Treasury Secretary, while former U.S. Secretary of State John Kerry is also nominated to take on the role of climate czar as the Biden administration seeks to rejoin the UN Paris Agreement.

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G20 leaders meet virtually and call for global, equitable access to vaccine programmes and continued economic support. Host Saudi Arabia has lauded the stimulus measures enacted by governments around the world. Vaccine optimism has U.S. futures pointing to the upside along with opening calls in Europe, this despite a surge in cases in the States. Germany may begin vaccine roll-outs as soon as December and in Spain from January. And President-elect Joe Biden is to name his cabinet choices tomorrow. Former deputy national security advisor under President Obama, Anthony Blinken, is reportedly set to become Secretary of State.  

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U.S. Treasury Secretary Steven Mnuchin calls for an end to certain virus support programmes, causing futures to dip. The Fed, however, pushes back against wrapping up business support measures. President-elect Joe Biden says he will name a new treasury secretary around Thanksgiving and vows not to lock down the economy. In Europe, Brexit negotiations are set to resume remotely after a member of the EU delegation tested positive for Covid. Meanwhile, the WHO plays down any efficacy of virus treatment drug Remdesivir.

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U.S equities close sharply in the red on the back of New York Mayor Bill De Blasio’s public school closures in response to rising Covid-19 cases in the city. This, as the overall Covid-related death toll in the U.S. reaches 250,000. JPMorgan CEO Jamie Dimon says continued caution is needed despite the news that the Pfizer-BioNtech vaccine deliveries could begin by Christmas. Meanwhile, global corporate debt is set to hit a record $277tn by year-end with the IIF warning that emerging economies will be hardest hit. And CNBC hears from Senator Elizbeth Warren and Obama Foundation co-chair Valerie Jarrett who urge a solution to the deadlock in the U.S. presidential transition.

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Wall Street closes in the red after disappointing retail sales in the U.S. renew calls for more fiscal support, with Democrats urging Republicans to return to the negotiating table. Legendary investor Masayoshi Son tells CNBC he is selling off Softbank assets to hoard cash in a bid to mitigate any Covid-related ‘worst-case scenario’. Facebook’s Mark Zuckerberg and Twitter’s Jack Dorsey appear before the Senate to defend their U.S. election coverage and moderation of content. A White House report warns of a renewed ‘aggressive and unrelenting community spread’ of Covid-19 across America. And in the latest M&A news, Deutsche Boerse announces it has bought a $1.8 bn share in Institutional Shareholder Services.

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