Squawk Box Europe Express

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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Stellantis CEO Carlos Tavares resigns with immediate effect while thousands of Volkswagen workers prepare to strike over lay-offs and wage disputes. Wall Street hits new records for November with the Dow and S&P 500 enjoying their best month of the year. In France, Marine Le Pen’s Rassemblement National threatens to topple Michel Barnier’s government unless further concessions are made to the budget. Elon Musk deepens his feud with OpenAI founder Sam Altman, filing a new injunction to block the ChatGPT parent company from turning a full profit.

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The yen surges against the greenback as hopes of a rate increase rise following stronger-than-expected CPI data for Tokyo in November. President Biden warns that President-elect Donald Trump’s proposed tariffs on neighbours Mexico and Canada would be counter-productive. In France, Prime Minister Michel Barnier offers a key concession in budget talks. The National Rally, however, says the move will not be enough to stave off a no-confidence vote against his government early next week. Following Direct Line’s recent rejection of takeover advances, Aviva approaches its rival’s shareholders directly which could pave the way for a hostile takeover bid.  

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The S&P 500 snaps a 7-day winning streak after the Federal Reserve’s PCE Index ticks upwards to 2.3 per cent. ECB President Christine Lagarde urges the EU to engage with U.S. President-elect Donald Trump on tariffs rather than risk a stand-off and retaliation. Germany’s Uniper hikes its FY guidance after having settled a number of legal cases which has allowed the energy giant to release provisions. In insurance news, Direct Line rejects a potential £3.3bn takeover from rival Aviva saying it had “substantially undervalued” the company.   

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China continues to grapple with deflation concerns as October industrial profits sink. U.S. indices appear to shrug of the threat of upcoming Trump tariffs and rising on the promise of further Fed easing. Attention will now turn to today’s PCE print. CNBC learns that OpenAI employees are set to sell $1.5bn of stock in a tender offer to SoftBank. And in the Middle East, a U.S.-brokered ceasefire deal between Israel and Hezbollah comes into effect. Israeli Prime Minister Benjamin Netanyahu warns his country is ready to respond immediately should any part of the agreement be violated.

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President-elect Donald Trump vows to slap 25 per cent tariffs on all imports from neighbours Canada and Mexico while also adding a further 10 per cent on all Chinese goods in a bid to combat drug-trafficking and illegal immigration into the U.S. The announcement triggers a rally on Wall Street and the dollar climbs higher. In Germany the SPD choose incumbent Chancellor Olaf Scholz as its nominee in February’s election as the party struggles in the polls. Steel giant Thyssen Krupp says that cheap Chinese imports will force it to reduce its labour force by up to 40 per cent by the end of the decade.  

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Unicredit launches a takeover bid for Italian rival Banco BPM in a deal worth approximately €10bn. President-elect Donald Trump names billionaire hedge fund manager Scott Bessent as Treasury Secretary prompting a rally in treasuries. In Germany, finance minister Joerg Kukies says that there is widespread support for reforming the country’s debt brake rules but expectations should remain realistic. Cop 29 delegates strike an annual finance target agreement of $300bn to assist poorer nations with the impacts of climate change but critics say the deal still falls short. Goldman Sachs is braced for a $900m hit from its investment in Northvolt after the Swedish battery maker filed for Chapter 11 bankruptcy in the U.S.

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President-elect Donald Trump nominated former Florida attorney general Pam Bondi to head the DoJ after his original pick Matt Gaetz decided to withdraw amid allegations of sexual misconduct. In Germany, defence minister Boris Pistorius has declined to stand against unpopular Chancellor Olaf Scholz to head the SPD going into February’s snap election. Lithium ion battery firm Northvolt files for Chapter 11 bankruptcy in the U.S., hampering Europe’s EV ambitions. And in crypto news, Bitcoin inches towards six figures in valuation as investors continue to back the Trump trade.

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Nvidia posts another stellar quarter to cement its lead in the A.I. race. Its shares, however, dip in after-hours trade. Indian multinational conglomerate Adani Group sees shares nose-dive after billionaire chairman Gautam Adani is charged by U.S. prosecutors with fraud and bribery charges. U.S. retail giant Target is in the red, falling 21.4 per cent in yesterday’s session – its worst trading day in more than two years. The company issued a sales warning ahead of the Christmas shopping season. And the co-heads of the upcoming Trump administration’s Department of Government Efficiency, Elon Musk and Vivek Ramaswamy, outline plans for mass job and spending waste cuts to the U.S. civil service.  

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President-elect Donald Trump appoints Cantor Fitzgerald’s Howard Lutnick to run the Commerce Department. Former WWE wrestling mogul and Small Business Administration leader during Trump’s first term Linda McMahon is given the Education Secretary brief. Apollo CEO Marc Rowan is reportedly is favourite to head up the Treasury. U.S. tech stocks soar helped on by chip giant Nvidia coming close to 5 per cent ahead of the U.S. earnings report. Qualcomm announces it is positive on Trump and forecasts $4bn in PC chip sales in the following five years. Ukraine fires six U.S.-made ATACMS deep into Russia after President Biden allowed their use earlier this week. Russian President Vladimir Putin amends his own decree on using nuclear arms. 

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