Squawk Box Europe Express

President Trump’s reciprocal tariffs kick in. India is still facing the prospect of levies being raised to 50 per cent while Swiss President Karin Keller-Sutter leaves Washington after failing to lower her country’s 39 per cent tariff. Germany’s Rheinmetall sees sales grow by more than a third in H1 on increased demand across Europe. Siemens confirms its FY guidance with quarterly orders surging by 28 per cent. However, its key profit indicator for its industrial unit falls by 7 per cent on the year.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump warns he could escalate pharmaceutical tariffs to as high as 250 per cent with extra levies on chips also on the table. Trump tells our colleagues Stateside, he wants to force producers to bring manufacturing home. In Europe, Novo Nordisk sees a Q2 surge driven by strong sales of its anti-obesity drug Wegovy just a week after a profit warning reduced the drug maker’s market cap by $70bn. And in banking news, Commerzbank cites restructuring costs behind its fall in Q2 net profit but the German lender is still upping key targets for the rest of the year.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. equities rally, unfazed by tariffs and weak economic data as investors anticipate further rate cuts from the Federal Reserve. President Trump threatens to increase tariffs on India over its purchases of Russian oil. New Delhi hits back, saying it is protecting its own interests. German chip maker Infineon hikes its full-year margin forecast. CFO Sven Schneider tells CNBC that the impact of tariffs has not been as pronounced as first feared.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Swiss equity markets react for the first time since President Trump imposed a 39 per cent levy on the country last week. European markets look to bounce back following Friday’s sell-off which was their steepest one-day decline since April with more quarterly earnings due later this week. And in the U.S., markets anticipate a Fed rate revision at every meeting left this year following last week’s disappointing employment print. The White House has defended President Trump’s decision to fire Labor Statistics Commissioner Erika McEntarfer.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump launches his latest round of tariffs, hitting Canada and Switzerland with higher levies due to start in a week’s time. The dollar jumps on the move – its first monthly gain since Trump assumed office – while the euro and sterling slump to their respective worst months in 3 years. Daimler Trucks revises FY profits forecasts by what could be more than 20 per cent citing poor performance in the U.S. market.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Meta ups its guidance on the back of a Q2 profits beat while Microsoft outperforms, growing revenue at its fastest pace in three years. In aviation news, Airbus confirms its delivery targets for the year despite engine supply delays from Pratt & Whitney. CEO Guillaume Faury tells our U.S. colleagues he is pleased about the trading environment following the U.S.-EU/UK deals. Asia-focused bank Standard Chartered announces a $1.3bn buyback following a 26 per cent H1 profit surge. The lender’s CFO, Diego De Giorgi, says non-rate affected units are ‘booming’.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Swiss lender UBS posts a Q2 net profit beat but CEO Sergio Ermotti tells CNBC that tariff ‘fatigue’ is beginning to affect client sentiment. Chinese and U.S. negotiators have failed to confirm a trade truce following 2 days of discussions in Stockholm. U.S. Treasury Secretary Scott Bessent speaks to our colleagues Stateside and says that any extended pause will be ultimately decided up on by President Trump. Disappointing revenues of up to a quarter at Gucci drag parent company Kering down in Q2. The French luxury giant warns of a second price adjustment following the U.S- EU trade deal. And Japan, the Pacific coast of the U.S. as well as Guam and Hawaii brace for a tsunami following a massive 8.8 Richter Scale earthquake off the coast of Russia’s far East.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

European leaders vent their frustration at the trade deal secured by U.S. President Donald Trump with the EU as details of the agreement begin to sink in around the bloc. Trump has said he will set tariffs in the 15-20 per cent range ahead of the Friday, 1st August global deadline. Philips hikes its guidance after concluding that Trump’s tariffs will affect profits less than previously expected.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. President Donald Trump and European Commission President Ursula von Der Leyen announce a deal to avert a full-blown trade war but the EU will still be hit with tariffs of 15 per cent. European futures move higher on the news as investor sentiment stabilises ahead of the tariff deadline this Friday. Heineken posts an H1 beat and backs its FY forecast.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump tours renovations at the Federal Reserve and says costs have spiralled to $3.2bn at the site but Chairman Jerome Powell pushes back against the claims. LVMH suffers a larger-than-expected fall in Q2 sales as CEO Bernard Arnault announces plans to open a new factory in Texas. VW Group cuts its FY guidance following an almost-30 per cent plunge in operating profit in the second quarter.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Tesla shares slump after CEO Elon Musk warns of potential ‘rough quarters’ ahead as EV subsidies expire and European sales nosedive by 40 per cent in June. Deutsche Bank sees profits double in H1 to €5.3bn on strong inflows to its private bank and asset banking arm. CFO James Von Moltke tells CNBC he believes the German economy is gaining in confidence. European futures are up as the EU and U.S. move closer to negotiating a 15 per cent tariff package, similar to that agreed between Washington and Japan earlier this week.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The U.S. and Japan agree to what President Trump calls ‘the largest trade deal in history’. Tariffs on most goods including autos have been reduced to 15 per cent, sending shares spiking among car manufacturers. Italian lender Unicredit hikes its guidance following an unexpected profit jump in Q2 just a day after it abandoned its bid for smaller domestic rival Banco BPM. CEO Andrea Orcel tells CNBC the takeover move had become ‘a drag’. SAP posts a 24 per cent cloud revenue beat but still misses expectations. CFO Dominik Asam says he remains confident thanks to a strong pipeline in H2.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The White House maintains pressure on Federal Reserve Chairman Jerome Powell to cut interest rates but markets appear sanguine. The S&P 500 closes at a fresh record high while Treasury Secretary Scott Bessent tells our colleagues Stateside that he intends to investigate the Fed’s decision-making. Brussels is reportedly preparing a range of ‘nuclear options’ should the EU fail to agree a trade deal with Washington ahead of President Trump’s August 1st deadline. Anglo-Swedish drug firm AstraZeneca says it will invest around $50bn for manufacturing and R&D in the US over the next five years as it braces for potential pharma tariffs.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Japanese Prime Minister Shigeru Ishiba’s ruling coalition loses its majority in the upper house with rival parties advocating tax cuts and increased spending. U.S. Commerce Secretary Howard Lutnick says he believes an EU trade deal is feasible. However, reports suggest some EU leaders are considering harsher retaliatory moves should President Trump raise the baseline tariff rate. And in aviation news, Ryanair’s net profits almost double in the second quarter as Easter travel boosts Europe’s largest budget carrier. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Netflix posts a Q2 beat on the back of strong subscriber growth and advertising sales and has hiked its revenue forecast. Shares move slightly down in after-hours trade, however, as investors brace for rising costs in H2. Federal Reserve governor Christopher Waller is urging a rate cut this month, citing growing weakness in the U.S. labor market. And in Japan, the ruling coalition could lose its upper house majority in this weekend’s election as an upstart right-wing party threatens to add pressure to the country’s finances.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump denies he plans to fire U.S. Federal Reserve Chairman Jerome Powell following reports he had written a draft dismissal letter and discussed the move with lawmakers. Trump did again, however, criticise Powell for his failure to lower interest rates. The world’s largest contract chip maker, TSMC, posts a massive 60 per cent surge in profits in the second quarter. Drug giant Novartis hikes its full-year guidance on the back of a narrow Q2 core earnings beat and double-digit sales numbers. European Commission President Ursula Von Der Leyen outlines her next budget plans but faces stiff criticism from Brussels and member states for the content and handling of the €2.3tn package.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

UK Chancellor Rachel Reeves gives her Mansion House speech and calls on regulators to strip back red tape in order to boost growth. In the U.S., the June inflation print comes in slightly higher as tariffs begin to affect the core CPI number with President Trump continuing to slam the Federal Reserve’s measures. In France, Prime Minister Francois Bayrou infuriates Marine Le Pen’s Rassemblement National party after proposing a €44bn tax rise package as well as slashing two public holidays from the calendar to encourage economic activity. In autos news, disappointing European demand and Chinese competition prompts Renault to cut its full-year guidance. The company has also installed finance chief Duncan Minto as interim CEO.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Nvidia expects the green light from the U.S. government to resume selling a key AI chip in China with deliveries to begin soon. Domestic consumption drives Q2 growth in China but the threat of a trade war with the U.S. still looms. And U.S. President Trump u-turns on arms deliveries to Ukraine, including sending Patriot missiles and threatening Russia with secondary tariffs in the event of no ceasefire within 50 days.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump threatens the European Union with a 30 per cent tariff on exports into the U.S. starting on 1st August. However, Trump says a deal could be reached if the EU was willing to make concessions. The EU is holding off from any retaliatory measures for now but European Commission President Ursula Von Der Leyen says the bloc is preparing to target up to €90bn of U.S. products should negotiations fail. European futures dip but should avoid a severe sell-off as investors pin hopes on a settlement to be reached between Washington and Brussels.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

All eyes are on Washington as President Trump says he will send a tariff letter to the European Union by the weekend - after slapping Canada with a 35% levy. Meanwhile, JPMorgan boss Jamie Dimon has a simple message for Europe: you're losing the battle to rival the US and China. Across the Atlantic, European leaders are set to meet with Chinese President Xi Jinping this month, sources confirm to CNBC - averting potential embarrassment ahead of a likely contentious summit.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.