Squawk Box Europe Express

The U.S. Federal Reserve holds interest rates steady, as expected, and signals plans for multiple cuts before the end of the year. Wall Street rallies to new records, while the positive sentiment extends into Asia and the Nikkei notches its own high. Meanwhile the U.S. Department of Justice reportedly plans to sue Apple as soon as today, accusing it of blocking rivals from accessing iPhone hardware and software - just days after the EU issues its own antitrust fine. And, Reddit prices are at the top of the range as the social media platform prepares to IPO in New York.

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There's a fresh record for the S&P 500, while the Dow sees its best day in almost a month, as Wall Street counts down to the all-important Fed decision and an updated dot plot. U.S. Defense Secretary Lloyd Austin warns Ukraine's survival is in danger amid a funding impasse in Congress, as Poland's foreign minister calls on America to act. Elsewhere, Kering issues a profit warning, with the luxury giant saying an almost 20 percent plunge in Gucci sales will drag on group revenues. And Nvidia CEO Jensen Huang tells CNBC the company is just at the beginning of an 'AI computing ramp' that he expects to last years.

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An historic shift from the Bank of Japan - ending the world's last negative rates regime with its first hike in 17 years, while also abolishing its yield curve control policy. The Yen extends declines, hitting 150 against the dollar, while the Nikkei edges higher as investors embrace a new era for Japanese central bank policy. Polish President Andrzej Duda calls on NATO allies to ramp up defence spending, telling CNBC exclusively there is limited time to prepare for another potential Russian attack. And Nvidia turns up the AI heat, unveiling its highly anticipated "Blackwell" chip as it looks to extend its lead in artificial intelligence computing.

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U.S. producer prices have come in higher than predicted causing minor declines on Wall Street with Treasury yields pushing up too. The ECB chief economist Philip Lane tells CNBC that the central bank should take its time in deciding on rate cuts and earmarks June as a potential live meeting. Germany’s largest real estate company Vonovia posts a record full-year loss of €7bn with the CEO describing the fall in valuations as “the worst we have ever seen”. Former U.S. Treasury Secretary Steven Mnuchin tells our colleagues Stateside that he is creating an investor group to purchase the Chinese social media giant TikTok as legislation threatening the app’s American presence winds its way through Congress. We also hear from the CEO of Qatar Airways who says he is open to expanding his fleet through either Airbus or Boeing, stressing he has no safety concerns about the U.S. plane maker.

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The S&P 500 record run in the green stalls after Apple and Nvidia post 1 per cent declines. Tesla faces numerous valuation cuts with Wells Fargo calling the EV maker “a growth company with no growth”. Share have tumbled more than 4 per cent. We hear from HSBC Group CFO, Georges Elhedery, who predicts a U.S. soft-landing in H2 and says a lower rate environment will not have an impact on his company’s revenue guidance. The ECB outlines plans to incentivise inter-bank lending and to reduce its presence in financial markets. And in Washington, the U.S. House of Representatives votes overwhelmingly in favour of banning the Chinese social media app Tik Tok. The bill will now pass through the Senate.

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Inflation in the U.S. unexpectedly ticks higher in February, potentially lengthening the Fed’s path back to lower rates. However, U.S. and European equities hit new highs as investors stick with their June Fed rate cut predictions. In politics, President Joe Biden and former President Donald Trump have both won enough primary delegates to become their parties’ presumptive nominees in November’s presidential election, according to NBC News. In Japan, major companies commit to fully meet union demands for pay hikes, strengthening speculation the Bank of Japan could exit negative rates next week. Boeing suffers a plethora of quality control problems with its top clients complaining of delivery delays, cancelled flights as well as hiring freezes at the U.S. plane maker.    

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Former U.S. President slams both China and the EU, telling our colleagues Stateside that America is being taken advantage of economically. JPMorgan boss Jamie Dimon urges the Federal Reserve to act cautiously on rate cuts, arguing that a U.S. recession is still a possibility as President Biden unveils his budget for 2025, which proposes higher taxes, spending and debt. BoJ governor Kazuo Ueda has dampened optimism about the state of the Japanese economy ahead of a key meeting which could see the central bank raise rates out of negative territory for the first time since 2016 as the 10-year JGB reaches a three-month high. Chinese smartphone maker Xiaomi is to launch its first ever EV, helping to push shares up on the Hang Seng. GOP House leaders move against social media giant TikTok with a bill that could require its parent company ByteDance to either sell the platform or be liable to a fine in the U.S. 

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The Nikkei tumbles, posting its worst day in the more than a year on speculation the BoJ will finally raise rates, helping the yen while hurting exports. In China, sticker prices rise for the first time since lates summer but manufacturing price deflation continues to drag. New Delhi agrees to signs a $100bn free trade deal with the European EFTA bloc, ahead of a spring general election. And in energy news, Saudi Aramco sees FY profit fall by up to 25 per cent but its still manages to posts its second-highest net income ever while increasing its dividend. 

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There’s a new record high for the S&P 500 index – its 16th this year. In a testimony to the Senate, U.S. Federal Reserve Chairman Jerome Powell said the central bank was gaining the confidence it needs to cut rates. In Frankfurt, the ECB keeps rates on hold but signals a mid-year cut with President Christine Lagarde calling for more data by June. President Biden lashes out at former President Donald Trump during his third State of the Union address. Biden called on Congress to stand up to Russia’s Vladimir Putin. Humanitarian assistance to Gaza and the southern border crisis were also featured high on the agenda. Danish drug maker Novo Nordisk overtakes Tesla in market cap valuation, unveiling new trial data as well as plans to sell WeGovy in China.  

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