Squawk Box Europe Express

The U.S. is on high alert as the new year begins with a terror attack involving a pick-up truck ramming into revellers in New Orleans, killing 15 people and injuring dozens more. Hours later, a Tesla Cybertruck explodes outside the Trump Tower hotel in Las Vegas, killing the driver. Asian markets are mostly in the red with investors looking forward to a second Donald Trump presidency and a potentially more hawkish Federal Reserve. New Chinese export orders are down once more ahead of expected U.S. tariffs later this month. And in energy news, Kyiv refuses to renew a gas transit deal for Russian gas flowing into Europe.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

European equities are largely flat in the holiday-shortened session but the Stoxx 600 is set to deliver a second year in the green for the first time since 2015. The U.S. Treasury Department claims Chinese hackers have stolen documents in a major cyber breach. Beijing has said the allegations were smear tactics. Growth in China slows in December but President Xi Jinping said the country remains on track to hit its 5 per cent target for the year. And Chinese toy company Bloks Group is set to float on the Hong Kong Exchange in a listing that could be worth $188m. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Jeju Air disaster becomes South Korea’s worst air disaster in history with Boeing shares opening lower on the Frankfurt bourse. European equities follow Wall Street with every sector opening in the red. The Stoxx 600, however is still on track to end the year positively for a second straight time. In Japan, the Nikkei rises almost 20 per cent on the year while South Korea’s KOSPI posts its longest monthly losing streak since 2008. Condolences flood in for former U.S. President Jimmy Carter who has passed away aged 100.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese stocks are up on reports that Beijing is due to launch a record amount of special Treasury bonds in a bid to stimulate the economy ahead of Donald Trump’s return to the White House. U.S. President Joe Biden opens a probe into Chinese chip makers in what is the latest salvo against the country’s trade practices. Honda, Nissan and Mitsubishi all see shares surge, with Honda issuing a $7bn share buy-back and confirming merger talks with Nissan. French Prime Minister François Bayrou picks the head of the state-backed financial group Caisse des Dépôts Éric Lombard as his new finance minister.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Nissan and Honda officially begin merger talks which will create the world’s third largest automaker with ¥30tn in sales. Volkswagen shares are flat despite the German giant reaching an agreement with labour unions over annual cuts of €4bn and averting further strikes. In insurance news, Aviva is to buy up rival Direct Line in a deal worth £3.7bn. The deal will make it the largest home and car insurer in the UK. U.S. futures are up at the start of holiday-shortened week while President-elect Donald Trump threatens to seek American ownership of the Panama Canal over ‘ridiculous’ shipping fees.   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. is on the brink of a government shutdown, after the House rejects an amended Republican bill hours from the deadline. The Dow ekes out a gain, snapping its longest losing streak since 1974, as investors count down to today’s PCE print. Japanese core inflation came hotter than expected, slowing the Yen’s decline and pressuring the BOJ to hike rates. Nike shares reverse its gains as CEO Elliot Hill says the sport’s giant’s turnaround plan will be an uphill battle, while blaming deep discounts for declining revenue.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Markets were spooked after Fed Chair Powell delivers a hawkish cut and signals less easing in 2025 and beyond, with the dollar spiking, treasury yields climbing, and U.S. equities sinking. More fuel was added to fears over fewer rate cuts as President-elect Trump threatens to thwart a bipartisan funding bill, pushing the U.S. government closer to shutdown. Asian equities follow their Wall Street peers into the red, while the BOJ keeps rates on hold, as expected. Economists forecast a hold from the Bank of England as interest rates hit a three-decade premium against Germany amid higher inflation and weaker employment data.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street retreats from record highs, with the Dow dipping for a 9th straight session as Nvidia sinks deeper into correction territory. The Federal Reserve is gearing up to deliver its third interest rate cut in a row despite stronger-than-expected retail sales, while the outlook for future cuts remains mixed. In Asia, the Bank of Japan is also gathering to make its final policy decision of the year, as Japanese exports surge in November. Meanwhile, Nissan and Honda mull a merger as Japanese carmakers grapple with slowing demand and tough competition in the EV sector.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 its longest losing streak since 2018 while the Nasdaq soars, with Tesla, Google, Amazon and Apple hitting record highs. Meanwhile, Nvidia stumbles through, falling under correction territory, as rival Broadcom powers ahead after bullish calls from Wall Street. In Germany, Chancellor Olaf Scholz loses a confidence vote in the nation’s Bundestag, setting the stage for a February election. Softbank CEO Masayoshi Son pledges a $100 billion investment into the U.S., a massive win for President-elect Trump ahead of his return to 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.

Disappointing economic data sends Chinese equities lower and bond yields to record lows, renewing pressure on Beijing to boost domestic demand as stimulus impact fades. In South Korea, President Yoon Suk Yeol is impeached after his short-lived martial law attempt last week. Meanwhile, Moody’s cuts its France credit rating, just as new prime minister François Bayrou pledges to seek compromise in a divided parliament. Over in Germany, Chancellor Olaf Scholz awaits today’s no confidence vote, as the country prepares for possible elections in late February.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. producer price inflation comes in hotter than expected on the back of the CPI data earlier in the week. The print potentially casts some doubt over next week’s widely anticipated Fed rate cut. Speaking to CNBC at the NYSE, President-elect Donald Trump said he was optimistic for investors. Asian equities, however, move lower and China’s 10-year treasury bond hits a record high following an uninspiring readout from the country’s Central Economic Work Conference. In Frankfurt, the ECB cuts rates by an expected 25bps but President Christine Lagarde tells CNBC that a larger move had been mooted. In Germany, industry continues to falter with electricity prices hitting an 18-year high following poor returns from renewable sources.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

On Wall Street the Nasdaq closed Thursday’s session above the 20k-mark for the first time ever after the CPI data hit expectations. A further rate cut by the Fed is now expected next week. Asian markets followed suit into the green with investors now eyeing further stimulus from Beijing as a two-day economic summit ends today. We are live at the ECB where a fourth rate cut is almost a certainty but focus will turn to next year’s outlook as the euro zone grapples with faltering growth in France and Germany and the impact of the second Trump presidency. We are also at the SNB in Bern for the first rate decision under new chairman Martin Schlegel with markets split on the size of a widely anticipated rate cut.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street is in the red with the Dow posting its fourth consecutive negative session ahead of today’s inflation print. President-elect Donald Trump’s selection of Treasury Secretary Scott Bessent gives Federal Reserve Chairman Jerome Powell a short-term vote of confidence but sounded doubtful he would retain his position beyond May 26th next year. U.S. Steel shares fall on a report that outgoing President Joe Biden will seek to block the takeover by Japan’s Nippon Steel later this month. In France, President Macron is set to name a new prime minister by the end of tomorrow but has so far excluded both far-right and far-left parties from talks.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese President Xi Jinping says that there are no winners in a trade war as his country’s November export growth slows and imports decline at their sharpest rate in 14 months. Nvidia shares drag Wall Street into the red as regulators in China begin an investigation into potential anti-monopoly violations by the chip giant. We are live in Brussels where Rachel Reeves becomes the first UK Chancellor of the Exchequer to attend a Eurogroup session post-Brexit. She has pledged to re-establish a stronger trade relationship with the bloc. And in tech news, German software developer Teamviewer strikes a deal with Carlyle Europe Technology Partners to acquire digital employee experience platform 1E.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Markets are bracing for the U.S. jobs report, with Wall Street easing back from record highs, and small caps seeing their worst day in 3 weeks. Meanwhile in France, President Emmanuel Macron plays the blame game, resisting calls to step down and calling out the left and right for the government collapse. OPEC+ and its allies delay plans to increase production once again over weak demand and rising production outside the group. In the U.S., President-elect Donald Trump nominates former Senator David Perdue as the next ambassador to China, while tapping Elon Musk-ally David Sacks to lead on crypto and AI.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A vote of no-confidence in France brings the government down, ensuring Michel Barnier is the nation’s shortest-serving prime minister in more than 60 years. We are live in Seoul, South Korea where President Yoon Suk Yeol faces an impeachment vote this Saturday following Tuesday’s 6-hour long declaration of martial law. On Wall Street, tech stocks push indices into the green with the Nasdaq enjoying its best day since July. Federal Reserve Chairman Jerome Powell, however, still urges caution over further rate cuts. And in crypto news, Bitcoin finally breaches the $100k-mark as it continues to rally following the election of Donald Trump. The President-elect taps crypto advocate Paul Atkins for SEC chairman.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

South Korean President Yoon Suk Yeol is reportedly facing an impeachment vote as early as this Friday following yesterday’s 6-hour period of martial law. The political fallout sent the Korean won plunging to a two-year low. In Paris, Prime Minister Michel Barnier’s government is on the brink of collapse as opposition parties table a vote of no-confidence over his handling of the country’s budget. On Wall Street, the S&P 500 and Nasdaq enjoy fresh record highs ahead of this Friday’s employment print. E-commerce giant Amazon launches plans for a new A.I. super-computer using home-grown semiconductors in a bid to head off rival Nvidia.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

French Prime Minister Michel Barnier forces through a contested budget bill which spooks financial markets and exposes his government to a potential no-confidence vote this week. The S&P 500 and Nasdaq begin December hitting new record highs, with Asian indices following suit. Intel CEO Pat Gelsinger is ousted by the company’s board as his plans to turn around the chip maker’s fortunes falter. Meanwhile, the outgoing Biden administration launches new export controls for the chip sector in a bid to hamstring China’s ambitions in the sector. A U.S. judge upholds the decision to deny Tesla CEO Elon Musk a record $56bn pay package, despite shareholders voting to reinstate the move.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Stellantis CEO Carlos Tavares resigns with immediate effect while thousands of Volkswagen workers prepare to strike over lay-offs and wage disputes. Wall Street hits new records for November with the Dow and S&P 500 enjoying their best month of the year. In France, Marine Le Pen’s Rassemblement National threatens to topple Michel Barnier’s government unless further concessions are made to the budget. Elon Musk deepens his feud with OpenAI founder Sam Altman, filing a new injunction to block the ChatGPT parent company from turning a full profit.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The yen surges against the greenback as hopes of a rate increase rise following stronger-than-expected CPI data for Tokyo in November. President Biden warns that President-elect Donald Trump’s proposed tariffs on neighbours Mexico and Canada would be counter-productive. In France, Prime Minister Michel Barnier offers a key concession in budget talks. The National Rally, however, says the move will not be enough to stave off a no-confidence vote against his government early next week. Following Direct Line’s recent rejection of takeover advances, Aviva approaches its rival’s shareholders directly which could pave the way for a hostile takeover bid.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.