Squawk Box Europe Express

Squawk Box anchors discuss the continued slide in Asian stock markets following President Trump’s accusations that Beijing has reneged on trade commitments ahead of negotiations in the US capital today. Beijing has indicated it will retaliate against any increase in tariffs. Meanwhile, in Canada, lawyers for Huawei CFO Meng Wanzhou say that President Trump is deliberately attempting to link her extradition case to the trade talks with China. Disney profits soar off the back of strong performances from its theme parks and it announces its record-breaking Avenger: Endgame will stream exclusively on Disney Plus later this year. There are also first quarter earnings from Deutsche Telekom and Italy’s Unicredit. 

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Squawk Box anchors discuss the US market impact of renewed trade war fears with the Dow plunging by 470 points- its worst day since the start of the year. The S&P and Nasdaq also post their biggest declines since March. The tariff threats are felt across the Pacific with China’s April trade surplus coming in well below estimates as exports dip unexpectedly and imports rebound. CNBC hears from DoubleLine CEO Jeffrey Gundlach who believes stocks are now in a bear market and that President Trump is likely to follow through on his threat to increase tariffs on Beijing. Back in the US, in its first report since going public, ride-sharing firm Lyft posts a large loss and drivers threaten a global walk-out over low pay in the run-up to Uber’s own IPO. On the earnings front, Siemens beats expectations as it also announces the spin-off of a gas unit, while high taxes weigh on Commerzbank, as net profit falls by more than 50% in the first quarter.

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Squawk Box anchors discuss the latest escalation in trade tensions between the U.S. and China after Washington accuses Beijing of backtracking on its trade commitments. However, the Dow stages a major comeback and Asian stocks recover, as it’s confirmed that the next round of trade talks is still going ahead, with the Chinese delegation due to travel to the US, despite President Trump’s renewed tariff threats. Warren Buffett tells CNBC that markets have remained sanguine and warned of the perils of a trade war. And in Australia the dollar surges and stocks rise as the RBA decides to keep rates on hold at 1.5 per cent. On the earnings front, French infrastructure group Alstom, German consumer giant Henkel and one of the world’s biggest staffing companies, Adecco, report first quarter earnings.

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Squawk Box anchors discuss the sell-off in equity markets amid heightening US-China tensions following President Trump’s sudden pledge to hike tariffs on $200bn of Chinese goods from this Friday. Asian stocks plummet and US futures point to a sharp decline on fears that Beijing could pull out of this week’s round of trade talks. St. Louis Federal Reserve President James Bullard tells CNBC that the central bank may have to rethink its rates strategy on the back of record employment levels. And in the UK, Prime Minister Theresa May urges Labour leader Jeremy Corbyn to come to a cross-party agreement on her Brexit deal.

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Squawk Box anchors discuss a number of earnings from the big European banks starting with HSBC, which has posted a 31 percent jump in Q1 profits thanks to strong income growth in Asia and cost-cutting measures. French lender Societe Generale suffers a double-digit fall in net profit amid volatility in its corporate and investment bank. On the market front, oil stocks decline to a one-month low. Also in the US, President Trump’s second Federal Reserve board member choice Stephen Moore bows to political pressure to withdraw his candidacy while Berkshire Hathaway chairman Warren Buffett tells CNBC he has invested in Amazon shares.

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Squawk Box anchors discuss the Federal Reserve’s decision to hold rates. US stocks slide after Chair Jerome Powell says low inflation is “transitory”, dampening prospects of a rate cut.

In Beijing, US Treasury Secretary Steven Mnuchin boosts hopes of a US-China trade deal following talks yesterday. CNBC has learned that an agreement could come as early as next Friday. BNP Paribas Q1 net profits are up by more than a fifth off the back of better-than-expected revenues. The bank says it remains on course to hit its 2020 targets. Earnings for Dutch lender ING, Danish brewer Carlsberg and online retail giant Zalando are also released.

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Squawk Box anchors discuss Apple’s stock surge in extended trading as dipping iPhone sales are offset by a demand in the tech giant’s services and the group issues an optimistic outlook. The S&P 500 hits another record, marking its best start to the year since 1987 and joining the Dow and the Nasdaq in its fourth positive consecutive month. President Trump urges the Federal Reserve to cut rates to further boost the US economy ahead of its policy meeting. Meanwhile in Venezuela, opposition leader Juan Guaido has once again urged the armed forces to rise up against a defiant President Maduro, sparking violent scenes in the capital Caracas. And we hear from the head of Saudi Arabia’s Public Investment Fund, Yasir Al-Rumayyan in Los Angeles on his company’s stake in Uber ahead of the ride-hailing giant’s IPO.

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Squawk Box anchors discuss Chinese manufacturing numbers which have suffered an unexpected drop in April as growth momentum cools. Meanwhile in the US, the S&P 500 hits an intra-day record peak off the back of rising consumer spending in March and increased optimism for a US-China trade deal. Alphabet Q1 earnings miss forecasts, causing shares to slide after hours, with increased advertising competition behind the slump in performance. And a mixed picture for aviation as Airbus backs its FY outlook after posting a rise in Q1 core earnings but over at Boeing it’s a case of damage limitation following the fallout from the 737 Max crashes in Ethiopia and Indonesia.

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Squawk Box anchors discuss the Spanish election results where the incumbent PSOE has won but failed to secure a majority. Russia’s central bank governor Elvira Nabiullina tells CNBC exclusively that she fears a global slowdown but feels a recession won’t materialise next year. The US posts stronger-than-expected Q1 GDP with investors looking ahead to this week’s Federal Reserve meeting for further signs on its policy path. And oil slumps for a second consecutive session on the back of President Trump’s previous call for OPEC to raise output. Plus, there are Q1 results from Philips, Uber prices shares at $44-$50 ahead of its IPO and Avengers: Endgame breaks box office records, earning $1.2bn during its opening weekend.

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Squawk Box anchors discuss Amazon’s record Q1 profits which have beaten expectations, but are there clouds on the horizon as the retail giant flags a lower operating profit in Q2. Ride-hailing app Uber begins its IPO road show today seeking a listing of up to $90bn. In Beijing, President Xi Jinping addresses the Second Belt and Road Forum, asking for fair trade practices from partners. Following the collapse of merger talks, Deutsche Bank and Commerzbank shares both fall but Deutsche CFO James Von Moltke tells CNBC that consolidation of the lender’s asset management arm DWS is still a possibility.

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