Squawk Box Europe Express

Markets await U.S. Federal Reserve Chairman Kevin Warsh’s debut keynote speech at the Jackon Hole Symposium later today. We hear from Cleveland and Kansas City Fed presidents Jeff Schmid and Beth Hammack about their concerns regarding U.S. consumer inflation and the interest rate path. Nvidia notches the second-largest market cap move on record – almost $500bn on the Nasdaq – pushing its share price up by almost 9 per cent following stellar quarterly results. Prospective presidential candidates in France clash in the election cycle’s first debate with the centrist parties trailing both sides of the political spectrum.

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Nvidia posts another quarterly earnings beat, predicting a 70 per cent surge in sales growth for 2027 and shrugs off concerns over circular financing. CEO Jensen Huang tells CNBC, A.I. growth is accelerating and finally becoming productive. CNBC hears from sources that Anthropic has struck a $45bn cloud deal with Nscale while there are reports Nvidia is set to take over Hugging Face who’s platform was briefly hacked by OpenAI’s rogue agent several weeks ago. As global bond market volatility continues, all focus turns to Jackson Hole, Wyoming where U.S. Federal Reserve Chairman Kevin Warsh will deliver his debut keynote speech to the symposium later today.  

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Nvidia earnings are in focus as the AI giant hopes to prove the bears wrong about its $500bn AI financing push. There are expectations of a 100 per cent quarterly surge for the company. OpenAI’s chief of data centres, Chris Malone, has quit the company to become the third high-profile departure this month as IPO speculations abounds. Canada imposes tariffs on up $20bn of U.S. goods, escalating the trade war between the two neighbours.  

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U.S. Treasury Secretary Scott Bessent has warned of secondary sanctions on any third parties attempting business with the Islamic regime, including China. Bessent also insists the Treasury’s auction schedule would continue apace even amid the department’s buybacks. Germany’s finance minister Lars Klingbeil has blamed the global spike in bond yields on the conflict in the Gulf. In crypto news, Bitcoin surges past $80,000 for the first time since mid-May on the back of increased inflows of spot Bitcoin ETFs.

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U.S. futures dip ahead of Nvidia earnings and U.S. Federal Reserve Chairman Kevin Warsh’s debut speech at this week’s Jackson Hole Symposium. Both events could have significant impacts on how markets trade for the rest of the year. U.S. Treasury Secretary Scott Bessent vows to impose crippling new sanctions on Iran and any ‘enabling’ countries ahead of a widely anticipated press conference later today. Nordic and Baltic national leaders pledge continued military and financial support for Ukraine as the country marks Independence Day. UK Prime Minister Andy Burnham is also due to travel to Kyiv today – his first international visit as leader.

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Treasury yields have rebounded despite yesterday’s buyback intervention relief from U.S. Treasury Secretary Scott Bessent. In an exclusive interview, Bessent told CNBC he is prepared to increase the operation beyond $4bn. The bond sell-off has impacted the equities markets which closed deep into negative territory at the end of Thursday’s sessions. European futures are flat following a down week on the Continent. In crypto news, Bitcoin surpasses the $70,000-mark, adding approximately 20 per cent this week. We hear from Coinbase CEO Brian Armstrong who says the sector is now set for another bull market. And in banking news, Italy’s Monte dei Paschi offers a double takeover of Banco BPM and Banco Generali. If approved, the deal would be valued at close to €70bn and would trump Intesa’s own takeover bid.

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There’s some relief in the global government bonds market thanks to U.S. Treasury pledges to double buybacks for longer term bills. President Trump resumes criticism of the Federal Reserve for high interest rates amid rising debt burdens. Trump also escalates the economic pressure on Iran, threatening any third-party country doing business with the Islamic Republic and preparing to significantly increase sanctions on the country. ECB President Christine Lagarde says U.S. moves away from the global economic order are having a negative impact on eurozone growth. She urged policy makers not repeat the mistakes of the dotcom boom in today’s A.I. era.  

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The global rout in bonds eases somewhat but yields on sovereign debt remain at highs not seen for decades. Investors now turn their attention to UK inflation data and last month’s FOMC minutes. Equities also sell off Stateside and in Asia, especially in chip stocks, while European futures are firmly in the red. Chinese humanoid developer Unitree sees its shares balloon by more than 600 per cent on its Shanghai market debut as China showcases its ambitions for its national robotics industry.

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President Trump threatens to bomb ally Oman should it impede efforts to re-open the Strait of Hormuz following yesterday’s expiration of the MOU with Tehran with no immediate signs of diplomatic efforts from both sides. Brent moves to beyond $90 a barrel as a result while equities and bonds suffer losses. The U.S. 30-year T-bill surges to its highest level since 2007. The ECB has warned U.S. Big Tech stocks are due a correction and the euro zone’s households, insurers and pension funds are all vulnerable to any potential pull-back.

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European futures are set to start in the green after snapping a four-week winning streak. Investors are anticipating UK employment and inflation data, flash PMIs and the latest FOMC meeting minutes later this week. The U.S.-Iran MOU expires later today with the impasse forcing President Trump to concede Americans will have to contend with higher fuel prices. Heatwaves cause wildfires in Belgium while the level of the Rhine in Germany falls to a new record low. Berkshire Hathaway increases its stake in Alphabet. The tech giant is now its third-largest holding. Form 13F filings in the U.S. reveal a big tech ‘tug-of-war’ among institutional investors.   

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