Squawk Box Europe Express

China surprises by slashing its key short-term repo rate and announcing a rare economic press conference which triggers speculation of further stimulus measures from Beijing. In France a new government drawn together by Prime Minister Michel Barnier is under threat from a vote of no confidence over his ministerial choices. Apollo Global Management is reportedly eyeing a $5bn investment in Intel while Qualcomm reaches out with a friendly take-over bid. And Rupert Murdoch’s REA Group ups its takeover offer for UK property firm Rightmove following last week’s initial rejection.

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Wall Street notches its best day in six weeks with tech stocks leading the way as the markets celebrate this week’s 50bps Fed rate cut. In China the PBOC bucks expectations of a further rate cut and the BoJ stays put as well while hiking its forecast on domestic consumption. Mercedes slashes its profit outlook once again as Chinese sales fall. And in France, new prime minister Michel Barnier puts the finishing touches on his cabinet in a bid to end months of political deadlock following inconclusive elections in July.  

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The Federal Reserve announces its eagerly awaited first rate cut of 50 basis points since the outset of the Covid pandemic with policy makers predicting one further cut this year. The market reaction was mixed with Wall Street closing lower, despite the Dow and S&P 500 initially scaling fresh all-time highs. Equities in Asia saw strong gains following the news from the Fed. Our colleagues in Asia speak to Bridgewater Capital’s Ray Dalio who warns that soaring debt levels Stateside will still prove challenging for the central bank. We are live in Brittany, north-west France, where Spanish green energy giant Iberdrola opens a €2.4bn offshore wind farm. Chairman Ignacio Galan tells CNBC grid expansion is crucial. Investors await today’s Bank of England rate decision with a potential expansion of quantitative tightening expected.  

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In anticipation of the Fed’s milestone meeting, the S&P 500 hits a new record with retail data indicating the U.S. consumer and economy are more resilient than expected. DoubleLine Capital chief Jeffrey Gundlach tells CNBC’s Scott Wapner at the Future Proof wealth management festival he is calling for a 50bps cut. Hezbollah points the finger at Israel after thousands of its pagers explode across Lebanon simultaneously, killing at least 9 and maiming more than 2,700. In pharma news, U.S. authorities expand approval of a Novartis breast cancer drug which would open access to patients at the earlier stages of the disease. Commerzbank is reportedly considering replacing CEO Manfred Knof with a new chief with a mandate to rebuff a Unicredit takeover. And in the UK, investors are increasing bets the Bank of England will cut rates this week, strengthening sterling.  

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The greenback falls and the Dow hits a record high with investors increasingly betting on a 50bps interest rate cut from the Fed later this week. In Japan, the Nikkei is in the red as the yen strengthens past ¥140 /USD, while a CNBC survey shows a split over the timing of the BoJ’s next rate hike. Struggling chip maker Intel sees shares soar in after-hours trading following its announcement about cutting costs and reining in spending. Meanwhile, Microsoft props up its shares by boosting its dividend and launching a $60bn buyback scheme as it reaps the benefits of its early push into AI.    

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Chinese data indicates a slowdown in industrial activity and property prices with pressure now increasing on Beijing authorities to increase spending and stimulate demand. The S&P 500 and Nasdaq notch their best week so far this year with bets rising that the Federal Reserve could slash rates by 50bps later this week. We speak to RBI governor Shaktikanta Das who says India can maintain its economic growth of 8 per cent but inflation and rates concern still linger. GOP presidential candidate Donald Trump is safe after what the FBI has described as an attempt on his life at his Mar-A-Lago golf course.  

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The S&P 500 sees a 4-day win streak after wholesale prices come out in line with expectations, shaking off a tough start to September. No surprise as the ECB delivers its second rate reduction this year, but flags slowing growth as trades pare back bets on an October cut. Donald Trump rules out the possibility of another presidential debate, as the Harris campaign says it has raised almost $50 million in the 24 hours since Tuesday night’s face-off. Boeing workers decide to go on strike for the first time since 2008, as 96% of employees vote to walk out. A state-backed UAE firm reportedly enters talks to invest in OpenAI, as the ChatGPT maker unveils new models it says are capable for more human-like reasoning.

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Asian chipmakers climb higher following a tech-led rebound on Wall Street, as Nvidia CEO Jensen Huang attempts to reassure investors over its delayed Blackwell chip production. U.S. inflation falls in August while core CPI surprises to the upside, with Goldman Sachs CEO David Solomon telling CNBC exclusively that he still believes in a soft-landing. OpenAi is reportedly in talks over a fresh fundraising round, which would see the Chat GPT maker valued at $150 billion. Over in Europe, the ECB lines up its second rate cut of the cycle as markets bet on another 25 basis point move lower, with UBS CEO Sergio Ermotti reinforcing that view in an exclusive interview with CNBC.

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Kamala Harris and Donald Trump face off in the first and possibly last presidential debate, clashing over immigration, abortion, and the economy. Big bank shares take a bruising after JP Morgan claims its earnings expectations are too optimistic, with CEO Jamie Dimon warning of stagflation risks. Today’s U.S. inflation print has investors searching for clues on the Fed’s next move, with Bank of America CEO Brian Moynihan telling CNBC that the rate environment will remain restrictive. Auto shares slump as BMW and Continental stocks hit 2-year lows, while Volkswagen prepares for possible job cuts next year. Amazon Web Services announces an £8 billion investment in the UK, the latest in a string of recent expansion moves to Europe.

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Apple’s new iPhone 16 launch fails to send stocks higher, as investors and customers must wait for full AI features. Meanwhile, rival Huawei secures more than 3 million pre-orders for its new tri-fold phone. U.S. equities rebound from its worst week of the year, as soft-landing hopes boosts the S&P 500 to its biggest daily jump in three weeks. Also in China, export data exceeds forecasts, while imports declined near the flatline amid low domestic demand. In the U.S., Kamala Harris and Donald Trump get ready to face off in their first presidential debate, as polls show a neck-to-neck Presidential race. Global dividends hit a fresh record in the second quarter, as more firms are either raising payouts or maintaining them, according to Janus Henderson.

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