Squawk Box Europe Express

The S&P 500 and the Nasdaq turn in their worst weeks since March with tech giant Apple weighing heavily, while non-farm payrolls miss expectations with a gain of 187,000 jobs in July. Siemens Energy cuts its revenue outlook and posts a third quarter net loss of almost €3 billion, with the German group warning of further serious challenges at its wind unit Gamesa. And Berkshire Hathaway’s cash pile jumps to nearly $150 billion as Warren Buffett's conglomerate posts a near 7% rise in operating earnings.

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Amazon posts a blowout quarter, beating on both the top and bottom lines as cost cutting efforts help the company deliver its biggest earnings beat since early 2021. The shine comes out of Apple with shares dropping in extended trade as the iPhone-maker grapples with declining sales of its consumer devices. Treasury yields break higher with U.S. bonds shedding nearly all their gains for 2023, as investors brace for the latest Non-Farm Payrolls report for clues on the Fed's next move. Meanwhile, Bank of England Governor Andrew Bailey tells CNBC the fight against inflation is far from over - and that the central bank will make its decisions as the data comes in. And finally, crude prices are on track for their 6th straight week of gains for the first time in more than a year, as Saudi Arabia extends output cuts into September.

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U.S. stocks hit sell-off mode - with the Nasdaq registering its worst day since February as investors digest the Fitch downgrade. JP Morgan CEO Jamie Dimon tells CNBC the decision was "ridiculous".

The Bank of England prepares to deliver its fourteenth straight rate hike today as inflation pressures appear to ease, but speculation ramps up over how big the increase will be.

Societe Generale beats on the bottom line in the second quarter and confirms its full year outlook, adding to a run of strong results from Europe's banks. Qualcomm shares sink in extended trade after the chipmaker posts a miss on revenue and issues softer guidance, as attention turns to Apple later today - with numbers out after the bell.

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Fitch strips the U.S. of its top-tier credit rating - citing fiscal deterioration and political deadlock as the surprise decision draws the ire of Washington. Markets digest the downgrade - with Asian equities sinking deeper into the red.

Siemens Healthineers confirms its full year top line outlook despite diagnostics revenue taking a hit in the third quarter. And a grand jury indicts former U.S. President Donald Trump on four counts over alleged efforts to overturn the 2020 election result.

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China's manufacturing sector contracts for the fourth straight month, but equity markets move higher as the country's State Council unveils measures to boost consumption. This prompts broader Asian stocks to extend last week's gains with the Nikkei hitting a 4-week high and tech stocks leading the way on Hong Kong’s Hang Seng. U.S. equity markets close out a milestone week as bumper earnings push the benchmark indices to 15-month highs, while core PCE data shows inflation at its lowest level in almost 2 years. Meanwhile, crude is on pace for its best monthly performance in 18 months, as expectations rise that Saudi Arabia will extend its voluntary production cuts for another month.

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Japan’s corporate bond yield surges to its highest level in almost a decade with the yen and Nikkei whipsawing. The BoJ has promised greater flexibility in its yield curve policy. Asia-focused bank Standard Chartered hikes its dividend and announces a $1bn buyback as H1 net profit surges 20% on higher rates. The ECB raises rates for the ninth consecutive time. President Christine Lagarde, like U.S. Federal reserve Chairman Jerome Powell, says she is open to another increase. In tech news, Intel shares are up 8 per cent after a Q2 beat on the top and bottom line. And the CEO of bespoke UK bank Coutts has been forced to resign following the Nigel Farage de-banking scandal.

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The Fed hikes interest rates to their highest level in 22 years. Chairman Jerome Powell says he will remain open to a further hike or a pause in August. Investors now await the ECB’s rates decision which is expected to be another hike of 25bps as euro zone inflation remains stubbornly above 5 per cent. Airbus beats Q2 profit targets and confirms FY guidance. CEO Guillaume Faury tells CNBC that supply chain bottlenecks do still remain a ‘complex environment’. Social media giant Meta beats on the top and bottom line driven by a recovery in digital advertising. French bank BNP Paribas sees Q2 net income surge by 16 per cent. CFO Lars Machenil tells this channel that price pressures are slowly easing.

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We have a slew of European earnings with Deutsche Bank and Unicredit dominating as investors anticipate another bumper quarter from the banking sector. Spanish giant Santander confirms its full-year outlook after a 15 per cent jump in H1 net interest income. In the U.S., tech earnings were front and centre. Google parent company Alphabet shares were up in after-hours trading as the company’s cloud unit drove profits. Microsoft, however, falls into the red. In luxury news, LVMH paints a mixed picture with Asian sales on the up but U.S. sales declining as Americans choose to travel in Europe. And NatWest CEO Dame Alison Rose has been ousted as CEO after she admitted “a serious error of judgement” in leaking confidential news to the BBC about the closure of Brexiteer Nigel Farage’s account with wealth manager Coutts.

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The Dow enjoys an eleventh day in the green posting its highest close since February last year. Chinese and Hong Kong markets are up on the promise of more economic stimulus from Beijing. Adidas has improved its full-year loss guidance after unexpectedly strong sales of Yeezy trainers despite the abandoned collaboration with U.S. rapper Kanye West. Weak demand for its weed killer forces Bayer to cut its full-year outlook for a second time while software giant Logitech hikes its sales guidance despite a 16 per cent decline in Q2 revenues. And we speak to Hinduja Group chairman Gopichand Hinduja who says UK Prime Minister Rishi Sunak has taken the correct steps to prevent the country from sliding into a recession.  

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We are live in Madrid where yesterday’s general election results in no outright winner, which could now mean months of coalition talks. Partido Popular leader Alberto Feijoo has stressed the need to avoid a prolonged period of uncertainty. The Dow closes last week in the green – only just – for the 10th consecutive day which in turn is the index’s longest rally since 2017. Markets are now eyeing key meetings from the ECB and the Fed later this week. U.S. Energy Secretary Jennifer Granholm has called for greater oil output to curb recent price hikes. She tells CNBC recent markets have been ‘emotional’. And in Greece, wildfires on Rhodes have triggered the largest mass evacuation in the country’s history.  

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