Squawk Box Europe Express

President Biden remains defiant in the face of top Democrats’ calls to step down from the presidential nomination following his latest string of gaffes during last night’s NATO press conference. The S&P 500 and the Nasdaq are both down from recent record highs as the U.S. inflation print for June comes in as the weakest monthly reading in 4 years. Tesla shares nosedive following reports that its robo-taxi rollout has hit another delay due to prototype building. In Japan, the yen sees a sudden surge overnight fueling speculation an intervention by the BoJ could be imminent. The Nikkei 225 falls from record levels. And we are live at Apple’s central London store where the Vision Pro mixed reality headset goes on sale in more countries beyond the U.S. and Asia.   

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The S&P 500 records its longest streak in the green, closing above 5,600 for the first time ahead of today’s U.S. CPI data print. In Washington, NATO leaders are set to announce new aid measures for Ukraine while criticising China over its alleged support for Russia’s war in the country. Samsung unveils a range of new products at its Galaxy Unpacked event in Paris with upgraded A.I. models dominating its line-up. And actor George Clooney adds his voice to the growing chorus calling for President Joe Biden to step out of the electoral race. Former House Speaker Nancy Pelosi has warned that any decision to be taken by Biden must be quick.

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Fed Chair Jerome Powell testifies on Capitol Hill, giving one of his strongest signals yet that a rate cut may be imminent. Powell said that holding rates too high for too long may jeopardise the health of the U.S. economy. As a result, the S&P 500 and Nasdaq hit new record highs but markets are down in Asia as China’s June inflation data disappoints. We are live in Washington D.C. where gathering NATO leaders have pledged a series of air defence systems to support Ukraine and mull what a potential second Trump presidency could mean for the future of the alliance. And in South Korea, Samsung is hit with an indefinite all-out strike by its 30,000-strong labour union which is demanding better wages and benefits following the company’s recent stellar sales and profits.  

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The French political impasse deepens as the leftist bloc insists it will head the next government. This, while President Emmanuel Macron rejects Prime Minister Gabriel Attal’s resignation. The S&P 500 and Nasdaq both close at record highs while in Asia, the Nikkei rallies by more than 2 per cent as investors anticipate Fed Chair Jerome Powell’s Congress testimony later this week. U.S. President Joe Biden has doubled down, insisting he will remain in the presidential race while donors and senior Democrats publicly express concerns over his mental acuity and general health. Markets are now pricing in a second term in office for former U.S. President Donald Trump. In energy news, crude dips as rigs in the Gulf of Mexico are impacted by Hurricane Beryl with widespread power cuts reported along the Texan coast.  

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France’s left-wing coalition scores a shock victory in the country’s parliamentary elections, holding off Marine Le Pen’s Rassemblement National who finished third. The country now faces a hung parliament with no clear indication of who will lead the government. Prime Minister Gabriel Attal has said he will resign later today. We are live in Paris for the latest. The euro and bond futures both fall as investors begin to assess the repercussions of last night’s poll, concerned with higher deficits and spending. U.S. unemployment figures are down to 4 per cent for the first time in 3 years but last month’s jobs figure comes in stronger than expected.

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Sir Keir Starmer’s Labour Party wins a landslide election in the UK, securing the largest majority for any political party since 1997. The Conservatives are on track to lose 218 seats - a historic low for the party. The Liberal Democrats claw back former Tory seats while Reform UK notch 15 per cent of the national vote. We are live outside the House of Commons and Downing Street for the latest. Sterling trade is cautious but the FTSE moves slightly higher as investors digest the results of the UK election.  

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The S&P 500 and the Nasdaq hit fresh records while the ADP report shows new jobs slowing for a third consecutive month. New polls indicate a hung parliament in France with the Rassemblement National falling just short of an absolute majority ahead of Sunday’s second round vote. Former U.S. president Donald Trump increases his lead over incumbent President Joe Biden as a growing number of senior Democrats urge him to withdraw from the race following last Thursday’s head-to-head debate. And here in the UK, millions of voters head to the ballot box for the country’s general election.  

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Federal Reserve Chair Jerome Powell hails the U.S. central bank’s work to rein in inflation but also echoes ECB President Christine Lagarde, telling CNBC he requires more data before moving to cut rates. Markets remain sanguine with the S&P 500 breaching the 5,500-point mark for the first time as investors take heart from Powell’s positive remarks. In autos news, Tesla shares are up after a Q2 delivery beat despite the total full-year figure coming in low. In France, parties form a republican front in a bid to quell a National Rally majority in this Sunday’s second-round parliamentary election. And in the UK, Prime Minister Rishi Sunak warns against a Labour super-majority ahead of tomorrow’s general election.

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We are live at the ECB’s annual forum in Sintra, Portugal, where ECB President Christine Lagarde plays down suggestions of a soft landing in the euro zone as price pressures linger. In the U.S., the Supreme Court historically rules that immunity extends to ex-presidents over official acts which would see a delay to former President Donald Trump’s Washington trial for attempting to overturn the results of the 2020 election. Wall Street begins July in the green with Treasury yields rising as investors mull the return of Trump to the White House. In France, the French leftist and centrist blocs face a deadline to merge against the Rassemblement National, urging third-placed candidates to withdraw. And in the UK, party leaders make their last-minute pitches to voters ahead of this Thursday’s general election.

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Marine Le Pen’s Rassemblement National wins the first round of the French parliamentary election, gaining 34 per cent of the vote with President Macron’s centrist bloc coming third behind the left-wing New Popular Front coalition . We are live in Paris for the latest. Investors take stock of the result with the French-German 10-year bond spread widening to its farthest point since 2012. The UK election race enters its final stages this week with the opposition Labour Party poised to win a landslide after 14 years of Conservative rule. In the U.S. President Joe Biden is adamant he will continue as Democratic nominee, resisting calls to withdraw from the race following last Thursday’s car-crash debate performance. And in aviation news, Boeing scores a near-$5bn deal to supply Spirit AeroSystems with competitor Airbus set to receive compensation pay under the terms of the agreement.  

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