Squawk Box Europe Express

The global rally cools as CNBC learns the signing of the first phase of the trade deal between the U.S. and China may now be pushed back to December, with the terms and location still to be decided. The Bank of England is expected to keep rates on hold as the U.K. December election campaigns lurch into gear. Prime Minister Boris Johnson launches the Conservative offensive amid ministerial resignations and senior party member gaffes. In corporate news, Tiffany is reportedly urging LVMH to increase its bid, saying the $14.5bn offer seriously undervalues the luxury group. We also have a glut of German corporate earnings today, including Siemens, ProSiebenSat.1 and Munich Re.  

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

New peaks… the Dow and the Nasdaq hit fresh record highs but the rally fades in Asia, with investors waiting on further developments in U.S.-China trade talks. We hear from Société Générale CEO Frédéric Oudéa who remains bullish about the French bank’s outlook despite missing Q3 profit expectations. In Japan, Softbank Group eyes its first quarterly loss in 14 years following its bailout of corporate real estate start-up WeWork last month. CNBC speaks exclusively to JP Morgan CEO Jamie Dimon who says he’s learned the lessons from WeWork’s multi-billion dollar rescue package and its failed IPO. We are also live at Web Summit in Lisbon where Sky CEO Jeremy Darroch tells this channel that ‘subscription fatigue’ is setting in as competition ramps up in the streaming industry.

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

High Hopes…The Dow Jones, S&P 500 and the Nasdaq hit a fresh record high off the back of strong economic data and a renewed sense of hope surrounding the U.S.-China trade deal. The optimism is voiced by Chinese President Xi Jinping who calls for closer cooperation to solve global trade disputes at the opening of the China International Import Expo. There are also reports that Washington could be prepared to drop some tariffs to reach an agreement with Beijing. In corporate news, ride-hailing app giant Uber beats Q3 expectations but still reports a quarterly loss of more than $1bn. CEO Dara Khosrowshahi tells this channel he predicts the company will be profitable by 2021. And we are live at the Web Summit in Lisbon where we hear from Verizon executive vice- president Ronan Dunne. He says that the U.S. has what it takes to compete in the 5G arena.  

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

The waiting is over. Saudi Aramco finally launches its highly anticipated IPO, with a domestic listing set for December, but offers little detail about what could become the world’s largest public listing. A stronger-than-expected October U.S. jobs report helps the S&P 500 and the Nasdaq to fresh record highs while Asian stocks rally on hopes that a trade deal between Washington and Beijing is nearing. Hong Kong is left reeling after the 22nd consecutive weekend of pro-democracy protests which have become increasingly violent. Chinese state media demands authorities take a harder line to quell the unrest. In auto news, German chancellor Angela Merkel promises to install 1 million electric car charging points by 2030 while Volkswagen is set to unveil a key new electric model at its newly converted plant in Zwickau.

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

Nothing scary about Halloween for stocks. Chinese manufacturing data surprises to the upside on the first day of the new month with market sentiment rising across the continent as a result. Over in the U.S., the S&P 500 and Nasdaq both end October by posting near-record highs – their strongest monthly gains since the start of the summer. The anchors break down the month-to-date winners and losers, such as the European auto sector and the dollar index respectively. There’s further unrest in Hong Kong with police clashing with pro-democracy protestors ahead of another weekend of planned mass protests and disruption. As the Halloween Brexit deadline comes and goes, U.S. President Donald Trump offers his opinion on the upcoming U.K. election, predicting a Corbyn government would be disastrous for the country.

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 following the Federal Reserve’s decision to cuts rates for a third time this year. Chairman Jerome Powell says the current monetary policy stance is now likely to remain on hold but should the outlook change the central bank would be ready to respond. In China, manufacturing contracts for a sixth consecutive month and the cancellation of the APEC summit in Chile next month dashes hopes of a trade deal between Washington and Beijing. In corporate news, Apple’s soaring wearables revenues help the tech giant beat Q3 expectations, offsetting a slump in iPhone sales. Facebook also beats expectations in the third quarter but the results are overshadowed by rival Twitter’s announcement it will ban all forms of political advertising across its platform. And there’s big movements afoot in the autos sector with the board of French car maker PSA approving a tie-up with Fiat Chrysler, potentially worth more than $40bn.  

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

Big bank earnings and a mega merger in the auto sector set the tone. Swiss banking giant Credit Suisse more than doubles net profit in the third quarter thanks to strength in its wealth management business. But German rival Deutsche Bank suffers a different fate as restructuring costs weigh on results, leading the lender to post a steeper than expected loss in Q3. Emerging markets focused bank Standard Chartered sees shares rise after it beats estimates with a 16 percent jump in third quarter profit. We speak to the CFO about the growing headwinds due to geopolitical tensions. In the autos sector, Italian-U.S Fiat Chrysler and French rival PSA are reportedly in talks to merge in a deal that would create a near 50 billion dollar car giant. And in the U.K., lawmakers back PM Johnson's call for a December 12th general election, in an effort to break the Brexit impasse.

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

Strong earnings and hopes of a U.S.-China trade deal drive the S&P 500 to a fresh record high, while investors bet on a third rate cut from the Fed later this week. In tech, Alphabet shares fall in extended trade after Google’s parent company misses Q3 profit estimates, as rising costs outpace a strong performance in ad sales. In the U.K., Prime Minister Boris Johnson loses his third attempt to force a snap election but vows to try again, while the EU agrees to a 3-month Brexit delay. Commerzbank shares close higher, as the German lender beats expectations with a surprise jump in quarterly profit, in results released ahead of schedule. And finally, Euro Zone leaders praise Mario Draghi’s vision, as he prepares to hand over the reigns after 8 years at the helm of the ECB.

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

Europe’s biggest bank HSBC warns of challenges ahead after reporting an 18 per cent plunge in third-quarter pre-tax profit. It missed expectations due to a weak performance in the European market but Chief Financial Officer Ewen Stevenson tells CNBC business in Asia is holding up despite the impact of the global trade disputes and unrest in Hong Kong. A 'mixed' picture for electronics group Philips in the third quarter, with margins still under pressure. CEO Frans van Houten tells CNBC the group moved too slowly to counter the effects of the U.S.-China trade war. LVMH goes after the little blue box in what could be the biggest M&A deal in Europe this year. The French luxury giant reportedly offered $14.5bn for U.S. jeweller Tiffany’s. In the latest Brexit development, Brussels is reportedly set to sign off on a three-month extension until January 31st, with the possibility of an earlier exit if U.K. Parliament ratifies the divorce deal.

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

Market cap wipeout…Amazon shares fall sharply in after-hours trading as the e-commerce giant misses Q3 expectations for the first time in two years due to one-day shipping costs. The tech conglomerate has also predicted a weaker-than-expected holiday season this year. It’s also a busy day for earnings from across the board in Europe. The world’s biggest brewer AB Inbev lowers its guidance, warning that tough market conditions will continue for the rest of the year after missing profit expectations in the third quarter. Kering sees strong growth in the third quarter particularly in Asia, which helps off-set losses incurred due to the ongoing democratic crisis in Hong Kong. And in politics, sterling recovers losses following Prime Minister Boris Johnson’s push for a general election on December 12th in exchange for granting lawmakers more time to scrutinise his Brexit deal.

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