Squawk Box Europe Express

Squawk Box anchors discuss the on-going calls for UK Prime Minister Theresa May’s resignation as Commons leader Andrea Leadsom tenders her resignation from the cabinet over May’s new Brexit deal. We have reaction from Westminster. In the U.S., the Federal Reserve minutes reveal that rates will remain steady for the foreseeable future as inflationary pressures have subsided. CNBC learns from a top executive at Huawei that the Chinese telecom giant could be ready to launch its own operating system this year should it be barred from using Google and Microsoft’s platforms. And, U.S. chipmaker Qualcomm’s stock dives after a U.S. court rules that it violated anti-trust law by illegally suppressing competition.  

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Squawk Box anchors discuss UK Prime Minister Theresa May’s last-ditch effort to get her Brexit deal through the House of Commons, offering lawmakers a variety of concessions, including the possibility of a second referendum. In the US, Wall Street bounces back after Washington offers Huawei a temporary reprieve, easing its restrictions as the Chinese smartphone maker launches new products in Europe. Chinese President Xi Jinping calls for a ‘New Long March’ amid on-going trade tensions with the US but also offers the prospect of a fresh round of negotiations. And, we are live in Westminster, Brussels and Bari ahead of the European Parliament elections. We hear from Italy deputy prime minister Matteo Salvini who brushes off suggestions his Lega party’s election campaign may have hurt his coalition government with the Five Star Movement.

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Squawk Box anchors discuss Washington's reprieve for Huawei, as the U.S. government allows the Chinese smartphone maker to keep buying U.S. goods to maintain current networks and software for the next three months. Chip-makers and Asian equity markets have rebounded on the news, as it raises hopes of easing trade tensions between Beijing and Washington. U.S. Federal Reserve Chairman Jerome Powell has warned that business debt is on the rise but says the broader financial system is robust enough to weather the challenge. Speaking to CNBC exclusively, Atlanta Federal Reserve President Raphael Bostic says a rate hike is unlikely in the autumn. Staying in the U.S., the T-Mobile-Sprint merger gets the thumbs-up from the communications regulator but it now goes up before the DOJ. And, Silvia Amaro reports from Brussels, as Europe prepares to head to the polls in parliamentary elections in two days' time.

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Squawk Box anchors discuss the overnight jump in oil prices following Opec and its allies’ joint decision to continue with further output cuts this year. Russian energy minister Alexander Novak tells CNBC the world’s top energy producers will continue to cooperate. President Trump says any conflict would be the “official end” of Iran, while Saudi Arabian oil minister Khalid Al-Falih warns the kingdom’s oil infrastructure is under threat from sabotage. Meanwhile, Huawei suppliers’ shares fall sharply following reports Google will restrict its business with the Chinese tech company, by stopping to supply the smartphone maker with key services. In Australia, equity markets soar to an 11-year high following incumbent’s Scott Morrison’s surprise election victory. And, Ryanair’s chief financial officer tells the team pricing will remain soft as the airline posts its weakest annual profit in 4 years.

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Squawk Box anchors discuss the wild week in stock markets as the Dow looks on track to post its first 4-week losing streak since 2016. US chip stocks fall following Washington’s blacklisting of Huawei. Beijing, however, remains defiant, saying it will emerge stronger from the trade war. EU finance ministers weigh in on the current escalating US-China trade tensions, telling CNBC it is important not to increase barriers. Meanwhile, Turkey loses its preferential trade treatment by the US but sees tariffs on its steel exports halved. Tech giant Sony’s share price has soared more than 10% following its announcement that it is launching a ¥200BN share buyback scheme as well as signing a strategic partnership with Microsoft. And Amazon leads the latest funding round in U.K. food delivery company Deliveroo.  

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Squawk Box anchors discuss the volatile moves in markets amid conflicting signals from the White House. U.S. stocks close higher amid signs of easing global trade tensions as sources tell CNBC President Donald Trump plans to delay auto tariffs by up to six months. But the U.S. President takes aim at China elsewhere, targeting Huawei with an executive order focused on banning telecom gear from 'foreign adversaries'. Foreign investors ditch Chinese stocks as the International Institute of Finance says the recent flare-up in trade tensions has triggered 4 billion dollars in outflows from mainland equities. And Publicis Chairman Maurice Lévy speaks to Karen Tso live in Paris, where world leaders and tech executives are meeting to address online violence and extremism following the terror attack in New Zealand in March.

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Squawk Box anchors discuss the recovery in equity markets as U.S. President Donald Trump and the Chinese government downplay tensions in the trade war. The Dow posts its best day in a month as Wall Street recovers from Monday's sharp sell-off, and stocks across Asia rise. Tech shares help lead the rebound with Apple rising more than one and a half percent, as investors wait for earnings from Chinese giants Alibaba and Tencent. China posts a weaker than expected rise in April industrial output, while retail sales growth drops to a 16-year low. Shares in Commerzbank close sharply higher following a report that Italy's Unicredit is stepping up plans to bid for the German lender. On the earnings front, French lender Credit Agricole, Germany energy firm RWE and cement giant LafargeHolcim report numbers.

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Squawk Box anchors discuss the massive sell-off in stock markets, after China retaliates in the trade war with the U.S, raising tariffs on $60 billion dollars worth of goods. The Dow tumbles 600 points, while the S&P 500 notches up its worst day since early January, losing more than one trillion dollars in market cap since May 3rd. Tech stocks lead the losses, as Beijing targets products such as cellphones and laptops, with Apple closing down nearly 6 percent, suffering its worst day since 2013. US bond yields fall amid speculation the Chinese government could sell its Treasury holdings, while the yield curve inverts as fears of an economic downturn rise. Bayer the one stock in focus after a California court orders the German chemical group to pay 2 billion dollars over claims its Roundup product caused cancer.

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Squawk anchors discuss the deadlock in trade talks between the U.S. and China. Shares in Asia slip and US futures fall as China and the U.S. stand their ground over trade, casting doubt over the prospect of a deal to end the tariff war, as Washington hikes levies on 200 billion dollars worth of Chinese goods. U.S. Secretary of State Mike Pompeo addresses increased tensions with Iran in an exclusive interview with CNBC, saying the military ramp-up in the Persian Gulf is not raising the risk of conflict, but is aimed at changing the behavior of the Iranian leadership. Uber stutters in its widely anticipated debut, dropping over 7 percent to close well below its IPO price and sending shares in rival Lyft to a fresh low.

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Squawk Box anchors discuss how, true to his word, President Trump has imposed 25 per cent of tariffs on $200bn of Chinese goods overnight as trade negotiations in Washington are set to resume for a second day. Chinese stocks have surged on Beijing’s promise to retaliate to Trump's move. Ride-hailing giant Uber has set its IPO price at the lower end of its range meaning it is valued at more than $75bn. And Amazon CEO Jeff Bezos is setting his sights on space with plans to send people to the Moon using his aerospace company Blue Origin, all within half a decade. There are also first-quarter results from Deutsche Post DHL and Telefonica.

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