Squawk Box Europe Express

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.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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.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 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.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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.   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 and Asian markets follow suit after a week of hawkish messaging from the world’s largest central banks. We hear from BNP Paribas chairman Jean Lemierre who says that rate hikes are the price to pay need to rein in inflation. New Twitter owner Elon Musk surveys users whether he should step down as CEO of the social media platform. Former FTX CEO Sam Bankman-Fried reverses his decision to fight U.S. extradition efforts where he faces allegations of wire fraud and money laundering.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Global equities see sharp sell-offs following this week’s rate hikes in the U.S. and Europe with warnings of more to come. All three major U.S. indices as well as the STOXX600 slump to their lowest level since November. Both the ECB and BoE push rates up by a further 50bps but say that rate increases will continue into 2023. In Brussels, EU leaders agree on more aid to Ukraine and how to respond to President Biden’s Inflation Reduction Act. However, a corruption scandal engulfing the European Parliament continues to deepen. We hear exclusively from the CEO of shipping titan MSC, Soren Toft, who says his firm is ready to capitalise on a predicted import/export recovery from China following Beijing’s relaxation of its zero-Covid policy.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Federal Reserve Chairman Jerome Powell lifts rates by 50bps and signals that the hiking path will continue into 2023, with its terminal rate up above 5 per cent. Investors now await the ECB and BoE to follow the Fed’s moves amid faint hopes that inflation may have peaked. In China, industrial production growth slumps in November while retail is down by almost 6 per cent as the countries zero-Covid restrictions continue to hamstring the economy. As EU leaders meet in Brussels to respond to the U.S. Inflation Reduction Act, we hear from Estonian PM Kaja Kallas who says competition rules cannot simply be ‘thrown out of the window’.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Founder and former FTX CEO Sam Bankman-Fried is denied bail in the Bahamas as he faces criminal charges over the collapse of the crypto exchange. Prosecutors have called it called it the largest embezzlement in U.S. history. Meanwhile rival exchange Binance have denied fears of contagion in the sector despite, according to crypto analytics firm Nansen, seeing $3bn of withdrawals within 24 hours. U.S. inflation data for November comes in lower than expected pushing Wall Street marginally higher. Investors now expect a 50bps rate hike from the Federal Reserve later today. And in Brussels, EU energy ministers fail yet again to compromise on a cap on gas prices with another meeting scheduled for next week.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Sam Bankman-Fried is arrested in the Bahamas and faces extradition to the United States, with prosecutors expected to charge the former poster boy of the Crypto industry with wire and securities fraud. U.S. equities kick off a crucial week of central bank decisions and economic data on a high, with investors hoping for a softer inflation print stateside today that could set the tone going into 2023. China and Hong Kong continue to ease Covid restrictions, dropping their state-mandated mobile tracking apps as the region continues to unwind some of the world's strictest curbs. EU Energy Ministers prepare to meet in Brussels for crunch talks on a gas price cap as the bloc is warned about potential shortages next winter.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. markets post their worst weekly performance since September, ahead of a busy week - with U.S. CPI data and a slew of central bank rate decisions in focus. Hong Kong's Hang Seng leads losses in Asia, with tech and property stocks under pressure. Crude climbs after Russia's Vladimir Putin threatens to turn off the taps to Europe, while a cold snap hits the continent and puts its energy security to the test. European Parliament Vice President Eva Kaili is suspended from her party, after Belgian police detain 2 MEPs and seize €600,000 in cash in a series of weekend raids.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Prices at China's factory gates fall for the second straight month, and consumer inflation slows on weak demand, while Asian stocks take heart from Beijing's easing of Covid curbs. The S&P snaps a five-day losing streak and part of the yield curve sees its deepest inversion since 2001, as investors eye producer price data for clues into the Fed's rate hiking path. U.S. regulators sue to block Microsoft’s $75 billion acquisition of Activision Blizzard over concerns it would harm competition in the gaming space. FTX founder Sam Bankman-Fried is warned he could be subpoenaed to testify on Capitol Hill next week, as the SEC calls on public companies to disclose their crypto exposure amid fears of further contagion.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

ECB staff discuss strike action after rejecting a below-inflation pay offer, as the central bank's own survey shows price pressures are set to rise next year. Hong Kong's Hang Seng jumps on local media reports authorities are considering a further easing of Covid measures, with tech stocks leading the charge. China's president Xi Jinping starts his three-day visit to Saudi Arabia in a bid to boost ties with the region. The S&P 500 posts its fifth straight negative session as rate concerns cloud the outlook, while consumer borrowing climbs.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

China relaxes Covid measures, removing the need for negative test results before travel and allowing home quarantine. U.S. equities slide, with the S&P 500 posting its fourth straight day of losses while JP Morgan CEO Jamie Dimon tells CNBC falling consumer wealth could spark a downturn. NBC News projects Raphael Warnock will win a crucial run-off race in Georgia, giving the Democrats an ouright majority in the Senate and delivering a blow to former President Donald Trump. And, Meta slides as the company threatens to pull news from Facebook, as its ad model reportedly comes under pressure in Europe.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow slumps nearly 500 points, after stronger than expected services data stokes fears the Federal Reserve may continue hiking rates until it triggers a recession. Tesla shares reverse even as the carmaker denies reports its planning to slash its Model-Y production at its Shanghai factory, after reporting record Chinese sales in November. Beijing officials continue to ease Covid restrictions amid a report China could announce ten new easing measures as soon as tomorrow, after last month's historic demonstrations. And Italy's Finance Minister adds to the chorus of calls for a European response to America's Inflation Reduction Act.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Shares in Greater China jump as cities across the mainland continue to ease Covid restrictions, raising hopes Beijing will soon end its zero-covid policy. Russia pledges to fight a G7-imposed price cap on its oil, set to come into force today, while OPEC and its allies agree to hold output steady amid weakening global demand. Wall Street posts back-to-back weekly gains for the first time since October, while November's non-farm payrolls report blows past expectations despite the Fed's attempts at clamping down inflation. And S&P Global slashes France's outlook to negative, citing rising budgetary risks as the country's debt pile grows amid ongoing support measures against inflation, and spiking energy costs.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asian markets retreat and U.S. equities give back some gains, with investors eyeing today's Non-Farm Payrolls report - while Fed Governor Michelle Bowman echoes Jerome Powell's message that tightening may slow but last longer. EU ministers edge closer to a deal to cap Russian crude oil prices, tentatively agreeing on a 60 dollar per barrel ceiling just days ahead of a de facto deadline. President Biden rolls out the red carpet for his French counterpart Emmanuel Macron, hosting his first state dinner as the pair pledge to hold Russia accountable for its actions in Ukraine. Twitter reportedly offers incentives to advertisers in a bid to win them back - while Elon Musk suspends Kanye West's account after the rapper violates the platform's rules once again.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 hints at a slowdown in interest rate rises. A 50bps move is expected in December, sending U.S. equities into the green. The tech sector leads gains in Hong Kong as Asian markets track Wall Street. A private sector survey in China shows manufacturing activity shrinking for a fourth consecutive month. Sam Bankman-Fried has denied he committed fraud at his now-bankrupt FTX exchange. We hear exclusively from Dutch minister for Climate and Energy Policy, Rob Jetten, who says that the failure of EU nations to agree on a gas price cap is jeopardising the bloc’s energy crisis plan.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese manufacturing activity shrinks for a second consecutive month as strict zero-Covid restrictions and dropping global demand weigh. Opec+ nations reportedly prepare to make deeper supply cuts, pushing prices higher as the EU’s ban on the majority of Russian crude imports is due to be enforced. U.S. equities dip for the third straight day ahead of a key speech from Federal Reserve Chairman Jerome Powell. And in banking news, HSBC is to sell off its Canadian unit to the Royal Bank of Canada for $10bn as it pivots towards the Chinese market.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.