Squawk Box Europe Express

Apple’s market cap falls below $2tn on the first trading day of the year as shares slump. The iPhone maker’s decline continues into 2023 after a year which saw its valuation drop by $1tn. Tesla misses Q4 delivery estimates, causing shares to slump 12 per cent. CEO Elon Musk now faces an investor backlash over demand and supply chain concerns. Forecasts of warmer winter temperatures push U.S. and European natural gas prices lower, helping to ease inflationary pressures in Germany. In Washington, House Republicans are in disarray after failing to elect Kevin McCarthy as Speaker after three votes – the first majority leader not to receive his party’s backing in a century. And in New York, former FTX CEO Sam Bankman-Fried has pleaded not guilty to federal fraud charges. His trial date is set for October.   

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Global markets start the new year positively after Wall Street posted its worst-performing year since 2008. IUMF Managing director Kristalina Georgieva has warned of a tough 12 months ahead. Chinese manufacturing activity at state firms hovers near a three-year low following the abolition of Covid regulations. President Xi Jinping has told his nation that the next phase in its Covid response would prove to be challenging. In corporate news, Tesla has posted record Q4 production and delivery numbers but misses estimates as supply chain issues and recession concerns continue to weigh. CNBC learns that Sam Bankman-Fried will plead not guilty to fraud charges over the collapse of his FTX cryptocurrency exchange.  

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U.S. markets end 2023 in the green with the S&P500 recording its best day all month and the Nasdaq claws back some of December’s losses. However, Wall Street as a whole is still on track to mark its most torrid year since the Great Financial Crisis. In China stocks are up despite the country suffering a huge Covid exit wave with several nations imposing travel restrictions on Chinese nationals. Oil prices end 2023 on a high after a bumper year for IOCs. Investors are now eyeing China’s reopening and Europe’s energy crunch in the new year. Russia continues to pound Kyiv with missiles following its largest aerial assault since the start of the war. U.S. President Biden has pledged more support for Ukrainian forces in his 2023 spending bill.

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Equities around the world continue to pull back at year-end. U.S. markets are set for their worst year since 2008, amid the backdrop of China’s post-Covid reopening. Several Asian nations, the U.S. and Italy re-impose testing demands on Chinese travellers following positive Covid results among 50 per cent of passengers arriving on two flights in Milan. Exxon is taking the EU to court over its windfall tax rules following the increase in levies ordered by Brussels. And in tech news, Apple shares tumble to a one-year low below a key $129 technical level. Investors are now bracing for the tech rout to spread into other sectors.  

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U.S. markets make a tepid return to trade as the China re-opening rally stutters. The S&P500 is now on course for its seventh-worst year ever. As Beijing unwinds its zero-Covid restrictions, the Hang Seng outperforms in Asia. Hong Kong is reportedly set scrap its Covid testing and vaccine mandate rules for international travellers. Russia has vowed to ban oil sales to any country abiding by the West’s $60 barrel price cap. And in auto news, Tesla is forced to pause production at its Shanghai plant causing shares to fall by more than 10 per cent – their worst performance by month, quarter and year to date.

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China scraps its quarantine rules for international travellers as its continues to wind back Covid restrictions, marking its biggest push yet towards reopening its borders since the pandemic. Violent blizzards hit much of the U.S. through the Christmas weekend, with tens of thousands of homes left without power and scores of flights grounded. Ukraine's Foreign Minister Dmytro Kuleba says Kyiv would be open to a UN-backed peace summit aimed at ending Russia's invasion, but stresses he wants to see Moscow pay for its actions.

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U.S. equities see the sell-off resume, killing off hope of a Santa Clause rally with tech stocks leading the losses. Billionaire investor David Tepper tells CNBC he is bearish on stocks. Tesla shares are down almost 9 per cent on demand concerns but manages to claw back some losses in extended trade. CEO Elon Musk will now not sell off any more shares until 2025. Border Force staff in the UK go on strike sparking travel chaos while in the U.S. thousands of flights are grounded by a ‘bomb cyclone’ winter storm. Former FTX CEO Sam Bankman-Fried is released on a $250m bail and ordered to remain under house arrest as he awaits trial for federal fraud charges.

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Wall Street enjoys a second consecutive day in the green, boosted by better-than-expected data and strong earnings from Nike and FedEx. Ukrainian President Volodomyr Zelenskyy addresses the U.S. Congress during his first trip abroad since the Russian invasion, saying that next year will be a turning point in the conflict against Russia. FTX founder Sam Bankman-Fried has been extradited to the U.S. as two of his top executives plead guilty to federal fraud charges in New York. In tech news, U.S. chip maker Micron’s share slump after it suspends bonuses and announces it is slashing its workforce by 10 per cent following a first-quarter loss.  

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U.S. markets break a four-day losing streak but indices are still set to post their worst year since 2008. The BoJ’s yield curve tweak pushes the yen to its strongest in more than 4 months. Ukrainian President Volodomyr Zelenskyy has announced his first foreign trip since the start of the conflict. He is due to meet President Joe Biden and address the U.S. Congress later today. U.S. sportswear giant Nike sees shares soar by 12 per cent in extended trade after beating expectations and raising its guidance. Elon Musk is reportedly searching for someone “foolish enough” to take over from him as Twitter CEO following the result of his own online poll.

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In a surprise move the BoJ loosens its yield curve control band causing the yen to pop and the Nikkei to sell off in what is seen to be a hint that the central bank is tightening monetary policy. In the U.S. hopes of a Santa rally fade as Wall Street posts its fourth consecutive session in the red as recession concerns show no signs of abating. Meta shares slump following an EU ruling which show the tech giant had breached anti-trust rules. It may now be fined up to $12bn. And in energy news, EU countries have agreed a gas cap compromise that would come into effect from February. However, Hungary has already voiced its opposition to the ‘dangerous’ measure saying it would leave European energy supplies vulnerable.   

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