Squawk Box Europe Express

The Dow hits its longest losing streak since 2018 while the Nasdaq soars, with Tesla, Google, Amazon and Apple hitting record highs. Meanwhile, Nvidia stumbles through, falling under correction territory, as rival Broadcom powers ahead after bullish calls from Wall Street. In Germany, Chancellor Olaf Scholz loses a confidence vote in the nation’s Bundestag, setting the stage for a February election. Softbank CEO Masayoshi Son pledges a $100 billion investment into the U.S., a massive win for President-elect Trump ahead of his return to the White House.

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Disappointing economic data sends Chinese equities lower and bond yields to record lows, renewing pressure on Beijing to boost domestic demand as stimulus impact fades. In South Korea, President Yoon Suk Yeol is impeached after his short-lived martial law attempt last week. Meanwhile, Moody’s cuts its France credit rating, just as new prime minister François Bayrou pledges to seek compromise in a divided parliament. Over in Germany, Chancellor Olaf Scholz awaits today’s no confidence vote, as the country prepares for possible elections in late February.

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U.S. producer price inflation comes in hotter than expected on the back of the CPI data earlier in the week. The print potentially casts some doubt over next week’s widely anticipated Fed rate cut. Speaking to CNBC at the NYSE, President-elect Donald Trump said he was optimistic for investors. Asian equities, however, move lower and China’s 10-year treasury bond hits a record high following an uninspiring readout from the country’s Central Economic Work Conference. In Frankfurt, the ECB cuts rates by an expected 25bps but President Christine Lagarde tells CNBC that a larger move had been mooted. In Germany, industry continues to falter with electricity prices hitting an 18-year high following poor returns from renewable sources.  

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On Wall Street the Nasdaq closed Thursday’s session above the 20k-mark for the first time ever after the CPI data hit expectations. A further rate cut by the Fed is now expected next week. Asian markets followed suit into the green with investors now eyeing further stimulus from Beijing as a two-day economic summit ends today. We are live at the ECB where a fourth rate cut is almost a certainty but focus will turn to next year’s outlook as the euro zone grapples with faltering growth in France and Germany and the impact of the second Trump presidency. We are also at the SNB in Bern for the first rate decision under new chairman Martin Schlegel with markets split on the size of a widely anticipated rate cut.

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Wall Street is in the red with the Dow posting its fourth consecutive negative session ahead of today’s inflation print. President-elect Donald Trump’s selection of Treasury Secretary Scott Bessent gives Federal Reserve Chairman Jerome Powell a short-term vote of confidence but sounded doubtful he would retain his position beyond May 26th next year. U.S. Steel shares fall on a report that outgoing President Joe Biden will seek to block the takeover by Japan’s Nippon Steel later this month. In France, President Macron is set to name a new prime minister by the end of tomorrow but has so far excluded both far-right and far-left parties from talks.

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Chinese President Xi Jinping says that there are no winners in a trade war as his country’s November export growth slows and imports decline at their sharpest rate in 14 months. Nvidia shares drag Wall Street into the red as regulators in China begin an investigation into potential anti-monopoly violations by the chip giant. We are live in Brussels where Rachel Reeves becomes the first UK Chancellor of the Exchequer to attend a Eurogroup session post-Brexit. She has pledged to re-establish a stronger trade relationship with the bloc. And in tech news, German software developer Teamviewer strikes a deal with Carlyle Europe Technology Partners to acquire digital employee experience platform 1E.

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Markets are bracing for the U.S. jobs report, with Wall Street easing back from record highs, and small caps seeing their worst day in 3 weeks. Meanwhile in France, President Emmanuel Macron plays the blame game, resisting calls to step down and calling out the left and right for the government collapse. OPEC+ and its allies delay plans to increase production once again over weak demand and rising production outside the group. In the U.S., President-elect Donald Trump nominates former Senator David Perdue as the next ambassador to China, while tapping Elon Musk-ally David Sacks to lead on crypto and AI.

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A vote of no-confidence in France brings the government down, ensuring Michel Barnier is the nation’s shortest-serving prime minister in more than 60 years. We are live in Seoul, South Korea where President Yoon Suk Yeol faces an impeachment vote this Saturday following Tuesday’s 6-hour long declaration of martial law. On Wall Street, tech stocks push indices into the green with the Nasdaq enjoying its best day since July. Federal Reserve Chairman Jerome Powell, however, still urges caution over further rate cuts. And in crypto news, Bitcoin finally breaches the $100k-mark as it continues to rally following the election of Donald Trump. The President-elect taps crypto advocate Paul Atkins for SEC chairman.  

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South Korean President Yoon Suk Yeol is reportedly facing an impeachment vote as early as this Friday following yesterday’s 6-hour period of martial law. The political fallout sent the Korean won plunging to a two-year low. In Paris, Prime Minister Michel Barnier’s government is on the brink of collapse as opposition parties table a vote of no-confidence over his handling of the country’s budget. On Wall Street, the S&P 500 and Nasdaq enjoy fresh record highs ahead of this Friday’s employment print. E-commerce giant Amazon launches plans for a new A.I. super-computer using home-grown semiconductors in a bid to head off rival Nvidia.

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French Prime Minister Michel Barnier forces through a contested budget bill which spooks financial markets and exposes his government to a potential no-confidence vote this week. The S&P 500 and Nasdaq begin December hitting new record highs, with Asian indices following suit. Intel CEO Pat Gelsinger is ousted by the company’s board as his plans to turn around the chip maker’s fortunes falter. Meanwhile, the outgoing Biden administration launches new export controls for the chip sector in a bid to hamstring China’s ambitions in the sector. A U.S. judge upholds the decision to deny Tesla CEO Elon Musk a record $56bn pay package, despite shareholders voting to reinstate the move.  

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