Squawk Box Europe Express

President Trump signs executive orders to extend unemployment assistance after virus stimulus plans collapse between Republican and Democrat lawmakers. Twitter has reportedly made a move for Chinese video app TikTok, which is seeking to sue the Trump administration over the U.S. ban. In Lebanon, Prime Minister Hassan Diab says he will request an early election in a bid to quell ongoing protests following last week’s port explosion in Beirut. And in energy news, Saudi Aramco sees Q2 profits nosedive by 73 per cent, but CEO Amin Nasser says the worst is over, sending shares higher in early trade today.

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

Asian indices slump into the red after President Trump signs an executive order banning U.S. companies from working with Chinese apps TikTok and WeChat. Trump has branded both mobile applications as a “threat” to U.S. national security and economy. Mixed Chinese trade data for July sees exports rising by 7 per cent, but imports fall by 1.4 per cent due to depressed demand. Uber’s Q2 revenues fall by almost a third as the ride-sharing app’s pivot to delivery services fails to offset a dearth in passengers during global lockdowns. And we hear from BoE governor Andrew Bailey who tells CNBC that negative rates are “in the toolbox” but that the central bank had no immediate plans of implementing them. He also denied accusations the BOE was too optimistic about the speed of the recovery following the Covid-19 pandemic.

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

U.S. markets close higher, shrugging off dismal ADP jobs numbers as Democrats continue their opposition to proposals in a fresh virus stimulus package. U.S. airlines shares respond to the upside following GOP Senators’ backing of a $25bn aid package for the industry. Bosses of the largest carriers warn that demand will take years to rebound. Siemens makes changes to its managing board as it beats Q3 forecasts, but the German industrial giant expects the pandemic to weigh on profits in the fourth quarter. And in London, the BoE prepares to issue its latest decision. There is speculation that policy makers will dash hopes of a V-shaped recovery for the UK.   

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

A massive chemical explosion in Beirut leaves more than a hundred dead and thousands wounded. President Trump suggests the blast may have been intentional. Chinese service sector growth retreats from a decade-high, as new localised lockdowns blunt the country’s post-pandemic recovery. In media news, shares in Disney rally despite a poor Q2, as investors pin hopes on a new streaming strategy potentially offsetting theme park losses of 85 per cent on the year. And Virgin Atlantic files for bankruptcy protection in the U.S. as it scrambles to secure a rescue plan to ward off creditors.

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

A 3-way deal? President Trump says the U.S. Treasury should receive a significant cut of Microsoft’s bid for Chinese social media app TikTok, as he says the companies have until 15 September to reach an agreement. U.S. major averages start August in the green with the Nasdaq hitting another record high. Google parent Alphabet issues a record $10bn in corporate debt at a rock-bottom coupon price. And in Europe, German lender Commerzbank goes against the advice of its second-largest shareholder, private equity group Cerberus to appoint Hans-Jorg Vetter as chairman.

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

Provisions eat into profit at HSBC after first half earnings miss forecasts, falling 65 percent as the bank sets aside more capital and warns of ongoing risks for the year ahead. French bank SocGen reports a €1.2 billion loss in the second quarter as the lender takes an impairment charge on its global markets business. President Trump reportedly gives China’s ByteDance 45 days to sell TikTok to Microsoft after the White House threatens the ban the short video app over security concerns. And: an historic moment for space travel as NASA astronauts successfully return from their mission to take the Crew Dragon to the International Space Station in the first mission from US soil in almost a decade.

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

Technology giants lead the way on Wall Street with Apple, Alphabet, Facebook and Amazon adding $200bn to their combined value in after-hours trading. Apple posts the biggest quarterly revenue jump in its history. Facebook records its slowest-ever sales growth but still beats forecasts through double-digit advertising revenues, shrugging off a recent corporate boycott. Lockdowns around the world have helped Amazon mark its best quarterly profit as well as create 175,000 new jobs. And, despite suffering its first sales slump in 16 years and weak cloud performance, Alphabet is buoyed by a robust ad recovery for Google.   

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

Credit Suisse leads a slew of European earnings, reporting a 24 per cent increase in second quarter profit as CEO Thomas Gottstein announces a merger of the global markets and investment banking divisions. Standard Chartered reports a 25 per cent drop in first-half profits and warns it is bracing for a fresh wave of Covid-19 challenges. Revenues at Airbus fall 55 per cent as losses total €1.6bn for the French aerospace firm so far this year. And in energy news, Total unveils an $8bn writedown after taking a hit on its Canadian assets. 

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

Deutsche Bank posts a second quarter loss of €77m despite investment bank revenues rising 46 per cent, as cost-cutting measures weighed on the bottom line. Santander reports a record second-quarter loss of €11bn amid a slew of write-downs. French luxury group Kering sees sales fall by 44 per cent in Q2 and abandons its guidance, saying it does not predict a rebound in the second-half. However, there is more optimistic news for Starbucks which sees lower-than-expected declines in sales worldwide, boosting shares in after-hours trading. The coffee giant expects to be profitable again this coming quarter.

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

Republican lawmakers announce they have agreed on a $1tn virus stimulus bill with Senate majority leader Mitch McConnell saying the U.S. “has one foot in the pandemic, one foot in the recovery”. Market uncertainty keeps gold at record highs but just shy of the $2,000/oz. price. Spanish Prime Minister Pedro Sanchez slams the UK government’s blanket quarantine decision as ‘not justified’. London has extended the measures to include the Canary Islands and Balearics, prompting sweeping flight and package cancellations from travel operators. And in retail news, there are disappointing H2 earnings from Moncler as well as luxury giant LVMH which posted a near-70 per cent slump in operating profit.

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