Squawk Box Europe Express

The U.S. and China reach a trade deal with both sides slashing their respective tariffs by 115 per cent. U.S. Treasury Secretary Scott Bessent says both sides have moved towards balanced trade. China-exposed shares soar in Europe with luxury, autos and tech leading the way. However, pharma stocks plummet following President Trump’s announcement that he will sign an executive order to reduce drug prices for Americans by up to 80 per cent.

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U.S. and Chinese trade negotiators hail ‘substantial’ momentum following talks in Geneva over the weekend. Further details are promised later today. President Trump vows to sign an executive order which would see American drug prices cut by up to 80 per cent. Italian lender Unicredit posts a top and bottom line beat in Q1 and raises its FY guidance. CEO Andrea Orcel tells CNBC his bank’s plans for consolidation are progressing.  

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The U.K. And the U.S. seals the first trade agreement of Trump's tariff war — but loose ends remain on the details. Meanwhile, attention turns to this weekend's negotiations between the U.S. and China in Switzerland, as President Trump says he may consider lowering the sky-high tariff level against Beijing. In Europe, Commerzbank bucks expectations to report nearly 12% profit growth in the first quarter, as the German lender looks to fend off advances from Italy's Unicredit.

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The UK and U.S. may potentially unveil a major trade deal as soon as this afternoon. President Trump has teased that an announcement is due at 3PM BST. The U.S. Federal Reserve has held rates steady once again, citing increased economic uncertainty ahead. Meanwhile, in the UK, the BoE is set to slash rates for a second time this year with more moves expected over the summer.  

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Beijing moves to increase stimulus into the economy from rate cuts to liquidity injections in an attempt to counter the effects of President Trump’s tariffs. U.S. and Chinese officials are due to hold trade talks in Switzerland this weekend. India bombs targets in Pakistan in retaliation for last month’s terror attack on Hindu tourists in the divided region of Kashmir. Danish pharma giant Novo Nordisk slashes its FY forecast despite an 18 per cent surge in quarterly sales.

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U.S. Treasury Secretary Scott Bessent tells CNBC that the White House is involved in talks with 18 key trading partners and that some deals are imminent. Ford suspends its outlook and reveals a $2.5bn loss as tariff uncertainty weighs. In Germany, the CDU’s Friedrich Merz is to become Chancellor later today following his party’s grand coalition agreement with the SPD.  

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President Trump shrugs off concerns about his handling of the U.S. economy in an interview with NBC’S Meet The Press, stressing that his main goal is to agree a fair trade deal with China. Warren Buffett shocks Berkshire Hathaway shareholders by announcing his retirement. The billionaire investor has led the company for more than 60 years and will now hand over leadership to vice-chairman Greg Abel. Crude prices fall as Opec+ nations agree to speed up production hikes once again. Also in oil news, Shell is reportedly considering a takeover of rival BP.  

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China said it is mulling tariff talks with the U.S. after the Trump administration reaches out - saying Beijing's door is always open. On the earnings front, Standard Chartered posted a 10% rise in first quarter net profit, with the Asian-focused lender maintaining its guidance despite heightened uncertainty. Apple and Amazon fell in extended trade despite earnings beats, as tariff uncertainty weighs on the outlook for big tech. 

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Meta and Microsoft both score quarterly profit beats on the top and bottom line, unfazed by the Trump tariff war. Qualcomm, however, sees its stock fall in after-hours trade and concern about the levies begins to weigh on its guidance. Spain’s competition watchdog endorses BBVA and Banco Sabadell’s €12bn merger deal. It now requires government approval. And in autos news, Tesla denies it ever considered replacing CEO Elon Musk following his extensive role for DOGE in the Trump administration. Trump, for his part, said Musk could stay in his cabinet as long as he wishes.

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UBS scores a Q1 beat with a better-than-expected net profit of $1.7bn on strong wealth management income. We hear from CEO Sergio Ermotti. Wall Street performance slumps to its worst level during the start of a new White House administration since President Gerald Ford’s in 1974, however Commerce Secretary Howard Lutnick tells our colleagues Stateside the first trade deal is imminent. And logistics giant DHL confirms its FY guidance despite the turbulence caused by Trump’s tariff policies.  

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