Squawk Box Europe Express

We are live outside the House of Commons in London where Chancellor Rachel Reeves is due to deliver her Spring Statement later today. Spending cuts are to top the agenda as Reeves struggles to revive a moribund economy. This, as the country’s budget watchdog, the Office of Budgetary Responsibility, is set to halve the country’s growth forecast for the year. UK economists also predict a small easing of the inflation rate ahead of the release of a final key data point. The Trump administration doubles down, shrugging off the fallout of the Signal chat security leak. President Trump defends U.S. retaliatory strikes against Houthi targets in Yemen. And in the Black Sea, Ukrainian drones have reportedly been shot down just hours following a naval truce between Moscow and Kyiv.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump says he is prepared to offer exemptions to some countries from reciprocal tariffs which begin on April 2nd. However, he pledges to add further levies on other key sectors such as autos, pharma, chips and lumber. Tesla sees European sales fall by more than 40 per cent during the first two months of the year. EV registrations on the Continent, however, surge by almost 30 per cent. Despite this, Tesla shares soar Stateside in their best session since November. And Washington DC is in uproar after a U.S. military operation against the Houthis in the Red Sea is mistakenly leaked to The Atlantic’s editor in a Signal group chat.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The annual China Development Forum kicks off in Beijing with Chinese Premier Li Qiang insisting the country is open to investment. President Trump signals he may be flexible on certain reciprocal tariffs. Canadian PM Mark Carney calls a snap election for April in a move to capitalise on growing anti-Trump sentiment throughout the country. In the UK, Chancellor of the Exchequer Rachel Reeves announces plans to slash 10,000 civil service jobs in a bid to revive a flagging economy and plug a fiscal shortfall.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

London’s Heathrow is shut with all flights cancelled or diverted following a massive sub-station fire knocks out power to the airport and to nearby neighbourhoods. The Dow and S&P 500 are slightly in the green to eke gains for the week but U.S. equities remain under pressure. DoubleLine Capital’s Jeffrey Gundlach believes a recession is a possibility. Brussels delays retaliatory tariffs on the U.S. by two weeks, pushing for further dialogue with the Trump administration. And in shipping news, Hapag-Lloyd suffers a 19 per cent fall in FY profits. CEO Rolf Habben-Jansen tells CNBC tariffs concerns are weighing on the sector.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Federal Reserve keeps rates on hold as anticipated. Chairman Jerome Powell signalled he was easing off on the growth forecast and slightly raising inflation projections. However, markets shrugged off any concerns and now expect two more potential rate cuts this year. The PBOC also maintains rates for the fifth straight month with the BoE and the Riksbank set to follow suit. The SNB is likely to cut once again later today. Nvidia CEO Jensen Huang talks to our colleagues Stateside, spelling out the firm’s A.I. infrastructure building plan. U.S. President Donald Trump hails his phone call with Ukrainian counterpart Volodomyr Zelenskyy, saying peace talks remained on track. Moscow and Kyiv still accuse each other of undermining any partial ceasefire with attacks energy installations.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Germany pass historic debt reform in the Bundestag, launching a fiscal bazooka of infrastructure and defence spending. Chancellor-in-waiting Friedrich Merz says the move will help create a new European security alliance. Russian President Vladimir Putin holds a near-two hour phone call with U.S. President Donald Trump and agrees to cease attacks on Ukrainian energy installations but hopes of an immediate truce fall short. Ukrainian President Volodomyr Zelenskyy says his country’s involvement in peace talks is paramount. Nvidia CEO Jensen Huang unveils the firm’s next generation of super-chips. And the BoJ decides to stay put on rates, signalling Tokyo’s growing concerns over Trump tariffs. The Federal Reserve is due to make its rate decision later today. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Israel shatters the ceasefire with Hamas - launching air strikes on dozens of targets in Gaza and killing hundreds. U.S. retail sales rise less than expected, adding to concerns about the state of the U.S. consumer - as the OECD warns of slowing global growth. Elsewhere Germany's Bundestag is expected to shake off the country's fiscal shackles today and overhaul its debt brake laws - lifting the cap on defence spending and greenlighting €500 billion in infrastructure investment. And BYD unveils a potential game-changer - rolling out new tech it claims can charge EVs in just five minutes.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asian equities are in the green as Chinese demand surges in the face of U.S. tariffs. Authorities in Beijing have pledged further moves to revive consumption. In the U.S., futures slip again. The Dow suffers its worst week since 2023. U.S. Treasury Secretary Scott Bessent tells NBC News that he remains unfazed by market turmoil. President Trump says he will hold talks with Russian President Vladimir Putin, raising hopes of a ceasefire in Ukraine. German Chancellor-in-waiting Friedrich Merz clinches a deal with the Green Party to launch a defence and infrastructure package 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.

President Trump threatens to slap the EU with a 200 per cent tariff on imported alcohol and says he will not bend on Canadian autos and metals tariffs. The jitters felt on Wall Street this week sees the S&P 500 in correction territory. U.S. Treasury Secretary Scott Bessent tells CNBC he is unfazed by short-term market volatility. Russian President Vladimir Putin says he agrees to the Ukraine ceasefire in principle but says the deal is ‘nuanced’ which has led to accusations he is stalling the process.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump pledges to introduce ore tariffs as the U.S.’s trading partners hit back against levies focused on steel and aluminium imports. A soft inflation report prompts investors to buy up the recent tech dip which eases market jitters about the health of the American economy. The U.S. deficit reached $1.15tn in the first 5 months of the American fiscal year despite DOGE’s efforts to cut government spending. We are live at the Converge Live conference in Singapore where Ferrari CEO Benedetto Vigna says he is braced for the impacts of tariffs but says the company’s customers are not yet feeling the pinch.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The European Union responds to President Trump’s tariffs hitting back with its own set of counter-measures worth €26bn. We are live in Singapore at CNBC’s inaugural Converge Live conference where billionaire investor Ray Dalio tells us the tariffs will cause confrontations between nations. Also at Converge Live, Alibaba chairman Joe Tsai says the importance and impact of President Xi’s recent meeting with tech bosses should not underestimated, as it galvanised the private sector to invest. Ukraine has agreed a proposal for a 30-day ceasefire with Russia following talks with Washington in Jeddah, leaving Moscow with ‘the ball in their court’. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. tech stocks suffer a $1tn wipeout as Trump tariffs and recession concerns trigger a massive repricing move. Tesla shares fall 15 per cent during its worst session since September 2020. U.S. Secretary of State Marco Rubio arrives in Jeddah, Saudi Arabia for Ukraine peace talks and says Kyiv will have to accept Russian control of some of its territory. Sales slow and investors await guidance from Volkswagen with earnings due later this morning. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Donald Trump says the U.S. economy requires time to transition and says that a recession is still a possibility. Former Bank of England governor Mark Carney wins the race to become Canadian Prime Minister and immediately slams Trump’s tariff policies against his country. The CDU and SPD will enter coalition talks following agreement on several policies including energy and tax reforms in a bid to lift the country’s stuttering economy. U.S. and Ukrainian peace negotiators head to Saudi Arabia and are looking to reset relations following last month’s Oval Office argument between President Trump and President Volodomyr Zelenskyy.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump signs an executive order to delay certain tariff measures on both Canada and Mexico, claiming the volte-face is unrelated to market reaction. Tech stocks lead tariff-related losses on Wall Street with U.S. equities suffering their worst trading week of the year so far. We are live in Brussels where EU leaders agree on defence spending but Hungarian opposition blocks unanimous support for Ukraine. EC President Ursula Von Der Leyen says the bloc is determined to step up to Russian aggression. Chinese export growth slows more than expected as U.S, tariffs come into effect. Imports are also down at the sharpest rate since mid-2023. And in crypto news, Bitcoin is down 6 per cent as President Trump’s crypto EO receives mixed reactions ahead of a summit on the sector at the White House.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Automakers are handed a one-month postponement of tariffs on Canada and Mexico by U.S. President Trump with his administration dangling the prospect of further sector-specific exemptions. Investor sentiment lifts slightly on Wall Street as a result and Asia equities follow suit. French President Emmanuel Macron says he could extend his country’s nuclear deterrent to cover Europe in the face of Russian aggression. He warns the continent must ready itself for self-defence, potentially without the U.S. providing security. Chinese e-commerce giant Alibaba launches its DeepSeek A.I. rival, helping its stock rise and pushing the Hang Seng to a new three-year high.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump makes the longest joint address to Congress in U.S. history, touting his administration’s achievements so far on immigration, government expenditure and upcoming trade measures. Tariff fears are reflected in the U.S. markets with the S&P 500 and Nasdaq seeing their post-election gains cancelled out. In Beijing, the NPC warns of changes ‘unseen in a century’ as it targets GDP of 5 per cent amid fears of another trade war with the U.S. Chancellor-in-waiting Friedrich Merz is considering loosening fiscal rules in order to boost defence spending and to ease Germany’s debt brake. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump’s tariffs come into effect hitting imports from Canada and Mexico with 25 per cent levies. China receives an additional 10 per cent. Both China and Canada immediately respond with counter-tariffs, digging in for what could be a bitter trade war. Tech stocks retreat with Nvidia seeing almost $300bn wiped from its market cap. Meanwhile, Taiwanese chip giant TSMC pledges to build to build 5 semi-conductor factories in the U.S., worth almost $100bn. The move could be the largest FDI in U.S. history. Opec + nations announce their first output hike since 2022, increasing to 138,000bpd starting next month. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

UK Prime Minister Keir Starmer calls for a ‘coalition of the willing’ following Friday’s dramatic collapse in US-Ukrainian peace talks. Crypto prices soar following US President Donald Trump’s details of his strategic reserve plan which features Bitcoin as well as smaller tokens in a bid to boost the sector. Asian indices are in the green today as investors anticipate tariff announcements on Canada, Mexico and China later this week. We are live at the Mobile World Congress in Barcelona where Deutsche Telekom CEO Tim Höttges tells CNBC Europe’s telco regulatory environment is increasingly being left behind. Chinese EV makers continue to make inroads in the sector with Tesla rival BYD enjoying a 160 per cent surge in annual market share in February.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street and Asian indices both fall into the red as global trade concerns weigh following President Trump’s pledge to slap additional tariffs on Chinese imports. Beijing has vowed to impose counter-measures. Nvidia drags global chip stocks down with its market cap dipping below $3tn. President Trump hosts UK Prime Minister Sir Keir Starmer and says the two countries are progressing towards a trade deal. In Germany, exploratory coalition talks between the CDU and SPD are set to begin today after no party achieved an outright majority in Sunday’s election.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Nvidia posts an earnings beat but guidance disappoints Wall Street pushing shares down slightly. The chip giant’s CEO Jensen Huang tells CNBC he remains unfazed by lower-cost challengers. President Trump holds his first cabinet meeting, threatening the EU with a new 25 per cent tariff on imports, saying the bloc’s formation was aimed at ‘screwing’ the U.S. Bitcoin attempts to claw back some losses as a global rout sees up to $800bn wiped off global crypto markets. UK Prime Minister Sir Keir Starmer is in Washington for his first meeting with President Trump with Ukraine-focused talks set to dominate the agenda.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.