Squawk Box Europe Express

Emergency action: the Federal Reserve surprises markets with the biggest rate cut since 2008, but fails to lift sentiment. The Dow plunges nearly 800 points, while Asian stocks lack direction. But the emergency measure, designed to tackle the impact of the virus outbreak, sends the U.S. 10-year treasury yield below 1 per cent for the first time ever. The WHO warns the death rate of Coronavirus is higher than originally anticipated, adding that travel restrictions are not enough to contain it. The economic pain is detailed further as China's services sector records its worst month on record, plunging to just 26.5 and escalating a string of disappointing data. And in the U.S., Democrat hopeful Joe Biden eyes victory on Super Tuesday following early results but Bernie Sanders is forecasted to win in delegate-heavy California.

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Bouncing back…Wall Street closes a turbulent day sharply higher, as the major indices roar back from last week’s sell-off. The Dow posts its biggest point gain ever, fuelled by a rally in Apple shares. Chinese stocks mostly follow suit, but the Nikkei fails to build on the rally. The ECB is the latest central bank to pledge support to mitigate the economic impact of Coronavirus, saying it is ready to adjust all instruments. The RBA becomes the first to act, cutting rates by 25 basis points to a record low and G7 finance ministers are set to hold an emergency call to discuss the crisis. We also preview the Super Tuesday showdown in the U.S. where one third of delegates are up for grabs. Joe Biden’s campaign is gaining momentum against frontrunner Bernie Sanders following endorsements from several more former Democrat rivals.  

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China contracts…PMI numbers show factory activity nosedives in February but local stock markets are up, in anticipation of stimulus from the PBOC. We are live in Riyadh where we speak exclusively to the WHO director-general, Tedros Adhanom Ghebreyesus. He tells this channel that while the window for containing Coronavirus globally is narrowing, markets shouldn’t panic. Despite the outbreak death toll surpassing 3,000 and the first reported American fatalities, U.S. futures turn to the upside. In Italy, the government has announced it will pump €3.6bn into the economy to mitigate the impact of the virus and avoid a recession. And in corporate news, Nokia CEO Rajeev Suri has agreed to step down amid reports of a potential sale due to struggling profits at the telco giant.

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Worst week…the Dow Jones plunges by more than 1,000 points into correction territory as Coronavirus fears rise. Global stocks look set to post their deepest losses since the 2008 financial crisis. Asian equities nosedive in Friday’s session and U.S. futures point lower once again, while the market’s volatility gauge, the VIX, is on track to make its second-biggest weekly jump in history. The outbreak also fuels expectations the Fed could ramp up easing measures, with investors predicting at least three rate cuts this year, sending the dollar sharply lower against the euro. But a major takeover is forged despite the sell-off, as German industrial titan ThyssenKrupp agrees to shed its elevator unit to a private equity consortium for more than €17bn - the biggest buyout in Europe since 2007.

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The Nikkei leads the Asian sell-off after the Dow fails to hold onto gains amid rising Coronavirus fears. American health authorities confirm a first potential ‘community-spread’ case in northern California and the number of fresh Coronavirus cases reported outside China tops those reported in the country for the first time. President Trump plays down fears of a global pandemic and puts Vice-President Mike Pence in charge of his administration’s response. In Germany, however, the reaction is more urgent with health minister Jens Spahn urging state health authorities and employers to brace for a possible accelerated outbreak in the federation. In corporate news, Standard Chartered posts a 46 per cent jump in full-year profits but says that meeting its 2020 targets will be hindered by slowing global growth as well as the Coronavirus. We speak to the Asia-focused lender’s CEO, Bill Winters, on set. We are also live in Zurich where LafargeHolcim cites ‘solid’ Chinese performance for its record net full-year income, but the effects of the virus could weigh on global construction in 2020.

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Pandemic panic. The Dow Jones suffers its worst two-day points loss in history with $1.7tn wiped off U.S. stocks. Fears of a global Coronavirus outbreak balloon with new cases reported in previously unaffected European countries and U.S. authorities warn a pandemic is likely, telling Americans to prepare for a possible 'community spread' of the infection. Investors head for safe havens and virus fears plunge the U.S. 10-year T-note to an all-time low. Shares across Asia follow the sell-off, but U.S. futures look to bounce back.

We speak to the best and brightest in the private equity world at the SuperReturn International conference in Berlin, as the industry’s returns underperform a major U.S. stock index for the first time. And it’s another big earnings day in Europe with numbers from mining giant Rio Tinto, French carmaker PSA, consumer goods conglomerate Danone and healthcare group Alcon.

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Bouncing back from a Wall Street sell-off. The Dow Jones nosedives by more than 1,000 points or 3.5 per cent – it’s worst single-day fall in two years – as fears of a global Coronavirus pandemic grow. The Nikkei follows suit but U.S. futures point to a rebound Stateside after American biotech firm Moderna sends the first batch of its Coronavirus vaccine to U.S. government researchers. The rapidly developed drug will start human trials at the end of April. Oil prices also rise slightly following a near-four per cent slump and gold pares gains after a safe-haven stampede saw the metal hit a seven-year high. We speak to the Saudi oil minister live, who tells us he is unconcerned about the impact of the virus. We also get the latest from Italy, as the north of the country remains on lockdown due to the outbreak and the Italian stock market suffers its worst day since the Brexit vote. Finally, we discuss the impact on corporate earnings, after billionaire investor Warren Buffett tells CNBC that the sell-off is a buying opportunity.

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Italy on lockdown… almost a dozen cities across Lombardy and Veneto are quarantined by authorities in a bid to quell the largest outbreak of Coronavirus seen outside Asia. The virus dominates discussions at the G20 in Riyadh, Saudi Arabia, with U.S. Treasury Secretary Steven Mnuchin exclusively telling this channel that the economic impact of the virus will not be apparent for another month. Meanwhile the IMF has pared back its Chinese and global growth forecasts and French finance minister Bruno Le Maire tells CNBC that his country is already counting the cost of reduced tourist footfall as a direct result of the outbreak. And in corporate news, Unicredit denies CEO Jean-Pierre Mustier will be leaving for HSBC and will remain to focus on the Italian lender’s new 2023 strategy.

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Fears remain… Wall Street closes in the red on global coronavirus concerns but Chinese shares are higher as Beijing insists that its key manufacturing provinces are rapidly coming back online. Federal Reserve vice-chairman Richard Clarida claims the U.S. economy looks to be in good enough shape to ride out the outbreak but says the central bank is continuing to monitor the situation. EU leaders have been locked in overnight negotiations over the bloc’s next budget. Commission president Ursula Von Der Leyen tells this channel that modern climate and digital policies must feature in the agreement. And Unicredit’s CEO Jean-Pierre Mustier is reportedly set to take over from Noel Quinn at the head of HSBC amid a huge personnel overhaul at Europe’s largest bank. We also have earnings from Valeo, Allianz and Pearson.

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All change at UBS… Sergio Ermotti steps down as CEO to be replaced by ING boss Ralph Hamers in November. In the U.S., the S&P 500 and Nasdaq hit record highs and Chinese stocks follow suit to the upside. The Coronavirus crisis prompts the PBOC to cut its benchmark lending rate to help mitigate the economic impact of the outbreak. The White House’s acting chief of staff, Mick Mulvaney, voices concerns that the U.K.’s decision to allow Huawei to launch its 5G network may have ‘direct and dramatic’ consequences on intel-sharing between London and Washington. Staying in the U.S., Michael Bloomberg is attacked from all sides in the Democratic primary debate in Las Vegas for his record while mayor of New York. And it’s a bumper day of European earnings, with numbers from Schneider Electric, Swiss Re, Air France-KLM and more.

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