Squawk Box Europe Express

Tit-for-tat becomes tittle-tattle… conflicting messages plague the progress of the U.S.-China trade talks, set to resume today. Asian equities and U.S. futures hold steady after sources tell CNBC that reports talks have collapsed are false. But the Federal Reserve’s September meeting minutes show that trade war concerns continued to weigh on the minds of board members when they voted to cut rates last month. Turkey launches an incursion against Kurdish forces across Syria’s northern border after President Trump’s weekend decision to move U.S. troops out of the region. And in corporate news, luxury goods giant LVMH posts better-than-expected third-quarter numbers in Europe and the U.S. but also in Asia, despite the impact of the Hong Kong crisis.

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Restricted and blacklisted. Asian stocks dip following a sharp plunge on Wall Street after the U.S. administration slaps visa restrictions on Chinese officials for alleged human rights abuses of Xinjiang Uighurs ahead of trade talks tomorrow. The move comes one day after Washington blacklisted 20 Chinese entities, drawing a harsh response from Beijing, which has called on the U.S. to stop interfering in its affairs. Meanwhile, Federal Reserve chairman Jerome Powell says the Fed will grow its balance sheet but cautions that the move should not be confused with the large-scale quantitative easing the central bank resorted to after the financial crisis. In the U.K., the pound slides following suggestions by No.10 that Brexit talks with Brussels are on the verge of collapse. The Irish Taoiseach Leo Varadkar says a deal is highly unlikely ahead of next week’s EU leaders’ summit. We are live in Luxembourg for the Euro Zone finance ministers' meeting.

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The charm offensive ends. The Hong Kong Exchange drops its 39 billion dollar bid for the LSE, admitting it failed to convince the London bourse of its ‘strategically compelling’ vision. Asian stocks rise ahead of U.S.-China trade talks later this week, even as Washington blacklists more Chinese firms ahead of a new flashpoint between the two countries after an NBA official sends a tweet in support of the Hong Kong protesters, which is met with a cold response in China. In tech, Samsung beats estimates despite signaling a 56 percent fall in third-quarter profit, while guidance suggests a turnaround is on the way for memory chip prices. And further job cuts for Thyssenkrupp as it is set to reveal a restructuring plan with new CEO Martina Merz presenting her proposals at a leadership meeting today.

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The Dow jumps more than 350 points after the jobs report puts the economy in a sweet spot, but it's a cautious trade in Asia as investors eye high level U.S.-China trade talks due to restart this week. A report suggests Beijing is looking to narrow the scope of the deal. HSBC is reportedly set to slash up to ten thousand jobs as the lender looks to cut costs under new interim CEO Noel Quinn. It’s a calmer day in Hong Kong after anti-government demonstrations turn violent as tens of thousands protest against the city's use of emergency law, drawing their first warning from the Chinese military. And the French President Emmanuel Macron says the EU will decide on a Brexit deal by the end of the week, as UK Prime Minister Boris Johnson says the block shouldn't bet on a delay.

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U.S. equities bounce back following two days of selling off, while weak economic data raises hopes the Federal Reserve will cut rates later this month. We look ahead to the jobs report for more signs. President Trump doubles down on his call for Ukraine to investigate the Bidens and urges China to look into the former Vice-President too, as the impeachment inquiry gets under way. In tech news, Facebook founder Mark Zuckerberg defends plans to encrypt the company’s messaging system as authorities in the U.S., U.K. and Australia say that the decision will put the public at risk. We are also live in Parma, Italy, to hear from the food industry ahead of a looming tariff tussle between the EU and Washington.

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A new front opens…Washington escalates the trade war, this time hitting the EU with tariffs on up to $7.5bn worth of goods. The U.S. plans to impose a 25% levy on a range of European products, including French wine, Italian cheese and Scottish whisky. The moves comes after the WTO ruled against the EU in a 15-year-old dispute judging the bloc’s subsidies to plane makers Airbus and Boeing to be illegal. President Trump hails the win but trade tensions and weaker-than-expected U.S. jobs numbers trigger a global stocks sell-off, causing the weakest day of trade on Wall Street in six weeks. In the U.K., Prime Minister Boris Johnson sets out his final proposal for a Brexit deal, including Irish backstop concessions but the reaction from the EU remains mixed. We are live in Brussels for the latest reactions.

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An October fright: global stocks see red and the Dow wipes out all of its third-quarter gains on the opening day of Q4 after U.S. manufacturing activity hits a decade-low. In the U.K., Prime Minister Boris Johnson is set to reveal his final Brexit ultimatum to the European Union, ruling out asking for any extension should Brussels turn down his offer. Hong Kong experiences further unrest overnight following the police shooting of a teenaged pro-democracy demonstrator. The violence is some of the worst the Special Administrative Region has seen since anti-Beijing protests erupted 17 weeks ago. And in Silicon Valley, Facebook founder Mark Zuckerberg has panned Democratic presidential hopeful Elizabeth Warren’s plans to break up large tech companies should she reach the White House, saying that he fancies his chances in any subsequent legal battle.

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“Reputational damage” – Credit Suisse CEO Tidjane Thiam survives the spying scandal, but the bank’s COO resigns following an internal probe that finds he acted alone in ordering the surveillance of former wealth management chief Iqbal Khan. We report from Zurich as the lender apologises for the affair that has gripped the Swiss banking community. We are also live from Hong Kong and Beijing, where President Xi Jinping pledges peaceful development as China marks the 70th anniversary of the founding of the People’s Republic, while the Special Administrative Region braces for more mass pro-democracy protests. We speak exclusively to the boss of Deutsche Post DHL, as the logistics giant boosts investments despite the economic slowdown in air freight.  

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Shares in AB Inbev’s Asia Pacific unit jump in its Hong Kong debut, in the second largest IPO of the year. On the city streets, protests turn violent, as police use tear gas and water cannons against anti-government demonstrators ahead of the 70th anniversary of Chinese communist rule. In the U.S., the whistleblower at the heart of the impeachment inquiry into President Trump is set to testify as early as this week. And in the U.K., with the threat of a no-deal Brexit looming, British Prime Minister Boris Johnson refuses to rule out leaving the EU without a deal, while health secretary Matt Hancock tells CNBC he would prefer an agreement.

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Capitol Hill remains front and centre. A whistleblower report alleges President Trump abused his power in a call with Ukraine's leader, and that the White House tried to cover it up. We’re live in Kiev as the U.S. president once again denies any wrongdoing, while the House Intelligence Committee chairman says the complaint provides a roadmap of allegations that need to be investigated. China's industrial profits fall in August as the trade war with the U.S. continues to weigh on the economy. But CNBC learns that talks between Beijing and Washington are set to resume on October 10th. Huawei CEO Ren Zhengfei tells CNBC exclusively that the Chinese tech giant hopes to keep doing business with Google, but is biding its time on the U.S. blacklist. And not fit for purpose – shares in Peloton dive in the fitness start-up’s market debut.

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