Squawk Box Europe Express

The PBOC makes its biggest ever cut to the country’s benchmark mortgage rate as authorities look to shore up the beleaguered Chinese property sector. In banking news, Capital One strikes a $35bn deal to snap up credit card issuer Discover Financial – the largest acquisition so far this year. German industrial giant Bayer slashes its dividend by 95 per cent to the lowest legal level in a bid to drastically cut costs and alleviate its debt situation. The world largest listed mining company, BHP also reduces its dividend payout following a plunge in H1 net profit as commodity pricing remains rocky. And we are live at the Singapore Air Show where China prepares to unveil its first home-grown passenger aircraft. IATA director-general Willie Walsh tells CNBC the aviation sector is still seeing examples of supply chain concerns.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

We are live at the Munich Security Conference where the death of Alexei Navalny on Friday and dwindling Ukrainian military supplies against Russia have dominated discussions over the weekend. We hear from NATO Secretary General Jens Stoltenberg who says he does not believe a potential Trump administration would abandon the alliance. Russian forces re-take the eastern Ukrainian city of Avdiivka – its first major victory in 9 months. Ukrainian President Volodomyr Zelenskyy says his country is awaiting more military aid from the West. Chinese indices are relatively flat following the week-long Lunar New Year festivities but data shows holiday spending topping pre-pandemic era levels. And in tech news, Apple is to be hit with a €500m anti-trust fine from the EU as part of an investigation whether it restricted apps from providing users with information about cheaper music-streaming subscriptions.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-

The S&P 500 achieves a fresh record high for the eleventh time this year – this as U.S. consumer spending in January falls more than expected in what could be an early warning sign for the American economy. In Japan, the Nikkei moves close to levels not seen since 1989. Crypto exchange Coinbase sees shares surge more than 14 per cent in extended trade. CFO Alesia Haas told our colleagues Stateside that Bitcoin ETFs are behind the company’s first quarterly profit in 2 years. And we are live in Bavaria where U.S. Vice-President Kamala Harris ahead of the Munich Security Conference where she will work to assure European allies that Washington will honour its NATO commitments. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Renault enjoys a FY operating margin on revenue of more than €50bn and is set to hike its dividend. French aviation giant Airbus sees full-year results surging on the back of a record orderbook and is also due to propose a special dividend payout. On Wall Street, the S&P 500 is back up at the 5,000-point mark as chip maker Nvidia briefly overtook Alphabet on market cap value. Meanwhile Berkshire Hathaway pares back its Apple stock and ramps up investment in Chevron. The company has sought confidentiality from regulators to keep its stock purchases secret in its latest 13-F filings. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. inflation for January disappointed, coming in at more than 3 per cent on an annual basis dashing any hopes of an imminent Federal Reserve rate cut. The markets reacted with the Dow posting its worst session since last March and Treasury yields spiked. DoubleLine CEO Jeffrey Gundlach told our colleagues Stateside that markets had vastly overestimated this year’s rate path. Ride-hailing app Lyft sees shares soar by 60 per cent in extended trade but then paring back sharply after management admitted to an accidental extra ‘zero’ to its margin growth number. And in tech news, Nvidia overtakes Amazon in terms of market cap valuation on the back of the A.I. boom. The chip giant now has Alphabet in its sights which would make it the third-largest firm on Wall Street.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow hits a new record ahead of today’s inflation report Stateside. The CPI growth has been seen below 3 per cent, which would be a first in three years. The CEO of Abu Dhabi’s SWF Mubadala, Khaldoon Al Mubarak, tells CNBC that the U.S. remains an attractive investment destination. ARM shares are up by almost 30 per cent, extending the post-earnings rally, which boosts one of its primary stakeholders Softbank in Japan. We also hear from Aston Martin Lagonda chairman Lawrence Stroll who dismissed suggestions that the sports car maker will require new funding to deliver its goals. And in political news, EU foreign chief, Josep Borrell, says that NATO cannot be an a la carte alliance, following former U.S. President Donald Trump’s funding comments while German Chancellor Olaf Scholz said he believed America would honour its commitments to the bloc.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street posts its fifth-straight week in the green with the S&P 500 breaching the 5,000-point mark for the first time. We hear exclusively from IMF managing director Kristalina Georgieva who warns about the need for China to introduce economic reforms and stabilise its property sector. NATO leaders baulk at comments made by former President Donald Trump saying he would not support allies who did not honour defence spending commitments in the face of an attack by Russia. Italian luxury fashion brand Tod’s has announced it will delist from the Milan stock exchange and go private in a deal with LVMH-backed PE group L-Catterton, valued at approximately €1.4bn.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The S&P 500 posts its ninth record session this year, briefly breaching the 5,000-point milestone. Similarly in Asia, the Nikkei hits 37k for the first time in 34 years before pulling back while Hong Kong equities are in the red at the start of the Lunar New Year. Disappointing sales for L’Oréal as northern Asian markets slump, with the French cosmetics posting a miss on sales and profits. In the U.S., President Biden dodges a Special Counsel report about his handling of classified documents and berates reporters for questioning his mental acuity.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

German engineering giant Siemens posts a 56 per cent rise in Q net income and boasts an order book of more than €22bn. CEO Roland Busch says the China market remains a concern. Shares in chip maker ARM are up 40 per cent in after-hours trade after the firm hiked guidance on strong A.I. demand. ARM’s major shareholder Softbank also posts a $16bn gain in earnings. Disney hikes its forecast and announces its foray into gaming, investing $1.2bn in Fortnite maker Epic Games. In China, producer prices fall for a sixteenth consecutive month while consumer prices have their steepest fall since 2009. On Wall Street, the S&P 500 records another record high – just five points shy of the 5,000-mark.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Moody’s cuts its rating on New York Community Bankcorp to junk status, causing its shares to nose-dive to their lowest level since 1997. However, the U.S. regional lender remains adamant, saying ‘ample’ liquidity of more than $37bn. Snap shares fall by more than 30 per cent in extended trade after missing earnings expectations in the fourth quarter. The company says that the Middle East turmoil is creating headwinds. Siemens Energy confirms its outlook after posting a 24 per cent jump in orders. It said it would remain focused on rectifying problems with its offshore wind business, Gamesa. In Italy, a controversial capital markets reform bill is sent to the Senate after the Chamber of Deputies approves measures to attract more listings in the country. And in aviation news, Boeing admits it must perform better after an initial NTSB report said four key bolts were missing from the plug door of an Alaska Airlines 737 Max which blew out mid-air.See Privacy Policy at https://art19.com/privacy and California Privac

UBS posts a better-than-expected Q4 net loss of $279m. U.S. markets are in the red as the 2-years Treasury yield reaches a one-month high as strong services numbers pushes back expectations of an early Fed rate cut. In China, authorities move to mitigate a slump in the stock market helping both the Hong Kong and Shenzhen indices up. In pharma news, Novartis buys up cancer treatment firm MorphoSys while Novo Nordisk snaps up a key manufacturing sub-contractor for its obesity drug WeGovy. BoE chief economist Huw Pill says it is a matter of when, not if, the central bank moves to cut rates after retail sales slow in January.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Money markets temper expectations for a March cut after Fed Chair Jerome Powell warns of moving too fast too soon - saying he wants to see more data to confirm that inflation is headed down to 2%. U.S. yields jump following a stellar payrolls report, as hiring hits 353,000 in January - nearly twice the forecast. The wild ride in Chinese stocks stretches into a new week, with the Shanghai Composite hitting a fresh 52-week low despite efforts from regulators to calm the situation. And The U.S. launches more strikes against Iran-backed groups in the Middle East in retaliation for an attack on a base in Jordan, as White House National Security Adviser Jake Sullivan warns this is just the beginning.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Apple beats on the top and bottom line in Q1 but weakness in China weighs and executives warn of falling iPhone sales. Meta sees its market cap balloon by $140bn after shares soared in after-hours trading following strong quarterly results. The tech giant also unveiled its inaugural dividend payout. Amazon posts record Q4 operating income following cost-cutting measures. Its cloud service AWS grew revenue by 13 per cent. BoE Governor Andrew Bailey suggests that markets could be correct in predicting the rate cut timeline after the central bank kept rates steady in the first three-way split since 2008. And in the U.S., the Dow enjoys its best week since mid-December as investors anticipate today’s non-farm payroll data.  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 dampens investor hopes of a much-anticipated rate cut in March with the S&P 500 suffering its worst session since September. French lender BNP Paribas disappoints, posting a Q4 profit of just over €1bn on higher provisions. The bank also pares back its profitability targets. In retail, Adidas predicts profits will almost double in 2024 to €500m following the sportswear titan’s controversial split with rapper Kanye West. And we hear from a slew of European CEOs today with Q4 corporate earnings in full swing.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Disappointing advertising revenues push Alphabet shares into the red in extended trade despite the tech giant posting its fastest quarter for revenue growth since early 2022. Microsoft beats on the top and bottom line, enjoying its highest profit growth in more than two years but guidance for the current quarter is lukewarm. In the U.S., a Delaware judge rules against Tesla CEO Elon Musk’s $56bn pay package calling it ‘deeply flawed’, arguing that the board of directors had failed to prove it was fair. Shares in the EV maker slid around 3 per cent in extended trade. Chinese factory activity suffers its fourth straight month of contraction but the IMF’s Chief Economist Pierre-Olivier Gourinchas tells CNBC the country is exhibiting some signs of resilience.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Both the Dow and S&P 500 notch their sixth record session for the year as the U.S. Treasury slashes its Q1 borrowing guidance. Investors Stateside are now anticipating mega-cap tech earnings. In Hong Kong, tech and property firms drag stocks lower. Asian indices bar Japan are set to now break a two-month winning run. Car giant Renault cancels plans to list its EV unit due to poor market conditions and slowing uptake throughout Europe. Gambling giant Flutter debuts on the NYSE and now plans to make Wall Street its home in what appears to be yet another blow to the LSE.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asia markets are in the green following a record close for the Dow on the back of personal consumption expenditure falling below 3 per cent for the first time in almost three years. Share of Chinese property giant Evergrande are stopped from trading after a the Hong Kong High Court orders the liquidation of the developer. Swiss building materials firm Holcim is to spin off and list its North American arm on Wall Street with a target valuation pf $30bn.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

French luxury giant LVMH smashes expectations to post almost $24bn in Q4 sales on rebounding Chinese demand. CEO Bernard Arnault has urged the need to focus on quality over quantity. On Wall Street the S&P 500 hits a record high to close in the green for a fifth consecutive session while the Dow also scores a new record peak on the back of stronger-than-expected economic growth Stateside. Tesla shares sink the most in a year with the EV maker seeing $80bn wiped off its valuation as demand weakens. And in tech news, Intel also sees a fall in its share price in extended trade as poor demand for data centre chips affect Q1 guidance. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Tesla earnings disappoint, sliding by 40 per cent in Q4. The EV maker has warned of weaker sales throughout 2024. Meanwhile, streaming giant Netflix sees shares hit double digits, helping the Nasdaq along with 34 points as new subscribers topped 13 million for the quarter. In aviation news, the FAA has limited production of Boeing 737 Max 9 jets but has approved existing craft for service with the first planes expected to fly from tomorrow. And we are counting down to the ECB’s first rate decision of 2024 where investors expect a ‘hold’ and more guidance on the future path of cuts.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Netflix shares are up in extended trade as the streaming giant boosts subscriber numbers and revenue beats expectations. The company has also inked a $5bn deal to stream live WWE. Former U.S. President Donald Trump secures victory in the New Hampshire primary over Nikki Haley who has refused to bow out of the race to become GOP presidential nominee. The contest will now move to Haley’s home state of South Carolina in late February. German software titan SAP announces a €2bn streamlining project which could affect up to 8,000 jobs in order to focus more directly on A.I. ambitions. In Ankara, the Turkish parliament finally ratifies Sweden’s NATO membership bid with Hungary’s approval now the remaining obstacle.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.