Squawk Box Europe Express

The Bank of Japan revises its upper limit on the 10-year JGB yield as a loose reference rather than a strict cap with the yield now hitting its highest level in almost a decade. On Wall Street, the S&P 500 enjoys its best day since August exiting correction territory but all three major U.S. indices are set to close October in the red – their first three-month losing streak since March 2020. In China, manufacturing activity saw a surprising dip for the month with services and construction also falling. And in corporate news, Tesla shares sink after its battery partner warns that EV demand is faltering. X CEO Elon Musk’s stock plan indicates he values the social media company at less than half the price he paid for it last year.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

HSBC launches a new $3bn share buy-back programme after posting Q3 profits of $7.7bn. The S&P 500 closed last week in correction territory, All three major U.S. indices are set for their third consecutive week in the red. Investors now await rate decisions from the Fed, BoJ and the BoE. Israel expands military manoeuvres in northern Gaza while thousands break in to a UN aid warehouse. In autos news, the UAW agrees to a pay deal with Stellantis and also approves a tentative deal with Ford regarding a 30% wage increase for full-time workers.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Nasdaq falls further into correction territory as poor tech results and rising Treasury yields dampens sentiment in the sector. Meanwhile the U.S. economy has grown at its fastest pace in two years. Amazon boasts soaring advertising sales with profits almost tripling for the quarter. Shares are up by 5 per cent in after-hours trade. In China, policy support aids profits in some of the country’s biggest industrial firms as Foreign Minister Wang Yi meets his U.S. counterpart Antony Blinken in Washington, hoping to improve ties between the world’s two largest economies. The ECB pauses its rate-hiking cycle after 10 consecutive increases. The central bank’s president Christine Lagarde announces that any suggestion of cuts remains very premature.  

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. markets are in the red with the Nasdaq suffering its worst one-day drop since February and the S&P 500 falling below the 4,200-point mark. Meta beats Q3 expectations but the result is overshadowed by an uncertain revenue outlook for the social media giant. Asia-focused lender Standard Chartered misses Q3 pre-tax profit expectations by 2 per cent and is hit with $294m of credit impairment charges. BNP Paribas chalks up a third-quarter beat with net income hitting €2.7bn but CFO Lars Machenil tells CNBC he is concerned about the oil and gas price outlook. Ford strikes a tentative deal with UAW and the agreement now needs to be approved by members following 6 weeks of strikes. And in Washington, Louisiana Congressman Mike Johnson is finally selected as Speaker of the House to end 3 weeks of uncertainty on Capitol Hill.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Tech earnings kick off in the U.S. with Alphabet posting a beat across the board but missing expectations on cloud revenue which has plunged shares down by 6 per cent in after-hours trade. Microsoft, however, see shares rise by 4 per cent after its own cloud unit saw quarterly sales rise by 19 per cent compared to last year. We have earnings in Europe where Deutsche Bank hikes its capital outlook after posting a 3 per cent increase in net revenue for the third quarter due to a strong performance from its corporate banking division. Luxury fashion house Gucci suffers a 9 per cent drop in Q3 sales as U.S. demand weakens. And in Washington a fourth GOP candidate – Mike Johnson – is the latest to be nominated for Speaker of the House after Majority whip Tom Emmer ends his bid just four hours after selection.   

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Billionaire investor Bill Ackman withdraws his short position while bond king Bill Gross snaps up short-dated interest rate futures in a sign the pair are concerned about the health of the U.S. economy. Hamas releases two elderly hostages as French President Emmanuel Macron jets into Tel Aviv in a bid to contain the conflict. In oil news, Chevron swoops for Hess in a $53bn all-share mega-deal. Chevron CEO Mike Wirth tells our colleagues Stateside the merger will be a boon for the sector. Computer parts maker Logitech struggles in the second quarter through falling sales following the gains it made during the pandemic.  

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Humanitarian aid enters Gaza amid ongoing Israeli airstrikes as the war with Hamas enters its third week. Speaking exclusively to our colleagues at Sky News, Israeli President Isaac Herzog has said his nation has the right to defend itself. Asian stocks fall for a fourth consecutive day as the global bond sell-off continues. Several Fed officials have hinted that the central bank may be close to ending the rate-hiking cycle. In China, the blue-chip CSI falls to its lowest level since 2019. Authorities in Beijing investigate Apple supplier Foxconn over tax issues and land use. In autos news, Volkswagen cuts its FY profit outlook but maintains its delivery and sales targets ahead of official results coming later this week.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. Federal Reserve Chairman Jerome Powell has dismissed criticism that the current rate policy is too tight and that recent signs of cooling are still not enough to convince that inflation is falling sustainably towards the central bank’s goal. Wall Street was pushed into the red after the 10-year Treasury yield breached the key 5 per cent mark. It is at its highest level in 16 years. U.S. President Joe Biden has called on Congress to release up to $100bn in a new security aid package to Ukraine and Israel, saying American leadership ‘holds the world together’. L’Oréal posts an 11 per cent surge in Q3 sales despite weak Chinese demand.  

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Price cuts and margin pressures have sent Tesla shares down 4 per cent in after-hours trade following a profit drop of 44 per cent for the quarter. CEO Elon Musk has warned of a challenging outlook. Netflix, however, sees shares soaring by 13 per cent on increased subscriber figures. Co-CEO Greg Peters hails the advertising business at the streaming giant. Asian indices are down after the U.S. 10-year Treasury yield hits its highest level since July 2007. Washington says that Egypt is due to open the Rafah crossing by Friday to allow humanitarian aid into Gaza. And in tech news, cloud computing titan SAP confirms its full-year guidance. Cloud revenue in Q3 is up 16 per cent with shares on Wall Street up 3 per cent in extended trade.  

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese GDP in the third quarter beats expectations growing 4.9%, raising hopes that Beijing can still manage to attain its full year growth target. In the U.S., the 2-year Treasury yield hits a 17-year high on better-than-expected consumer numbers. However, BofA CEO Brian Moynihan tells our colleagues stateside that he believes consumer activity is still being hampered by high interest rates. Hundreds are believed dead after a blast at a Gaza hospital, just hours before President Biden is due to arrive in Tel Aviv. We hear from Egyptian Foreign Minister Sameh Shoukry who says that Israel’s actions over the past week may have violated international humanitarian laws. In Washington, the search for a new House speaker stalls again as Republican Jim Jordan falls short of winning the role by 17 votes. A second ballot is due later today. And in retail news, sportswear giant Adidas cuts its full year loss forecast and hikes guidance on the strong sale of its remaining Yeezy shoe inventory.  

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.