Squawk Box Europe Express

Saudi Aramco posts a near-40 per cent surge in Q3 net income on the back of rising global prices. President Biden urges IOCs to use their record profits to help reduce prices for consumers. BP CEO Bernard Looney tells CNBC his company is already putting its windfall gains to good use. The Dow is slightly down but has posted its best month since 1976. Asian equities start the new month in the green. In China factory activity stalls as authorities increase Covid restrictions. The yuan is down to its lowest level since the GFC due to a weak midpoint setting. New Twitter CEO Elon Musk dissolves the board and sets aggressive targets amid upcoming job cuts at the social media giant.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Credit Suisse issues further details about its CHF4bn capital increase as part of its overhaul. Chairman of the Saudi National Bank, Ammar Al Khudairy, tells CNBC the Swiss lender must not hesitate in restructuring the bank. The Dow is on course to post its best month since January 1976 despite recent weakness in tech stocks. Chinese economic activity contracts for October as authorities ramp up Covid restrictions in key manufacturing and financial cities. And in Brazil, Lula da Silva narrowly wins the presidential election to edge out incumbent Jair Bolsonaro.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Elon Musk completes his $44bn takeover of Twitter and immediately fires CEO Parag Agrawal and CFO Ned Segal and confirms the acquisition by tweeting ‘the bird is freed’. Big Tech suffers an almost $800bn loss to its market cap as investors flee the sector on the back of underwhelming earnings, weak forecasts and spiralling costs. Amazon and Apple earnings are also due to today. The e-commerce giant offers a weak outlook ahead of the Christmas season while Apple misses on iPhone sales. In forex news, the euro nears parity against the dollar as the ECB raises rates by a further 75bps. President Christine Lagarde says the central bank’s job to calm inflation is still incomplete.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Credit Suisse posts a larger-than-expected Q3 loss. The lender unveils a turnaround plan which includes restructuring its IB unit and cutting costs by 15 per cent. Chairman Axel Lehmann has admitted the bank has been ‘unfocused’. The ECB is expected to raise rates by a further 75bps which would place them at their highest level since 2009. Facebook parent company Meta sees shares freefall by almost 20 per cent in extended trade. CEO Mark Zuckerberg’s move to build the ‘metaverse’ platform has so far failed to attract investors. And staying in Silicon Valley, Elon Musk is on the verge of purchasing Twitter with the finishing touches being applied by banks to financing deals.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asia-focused bank Standard Chartered beats expectations, posting a 40 per cent jump in Q3 profit on the back if rising rates. Spanish lender Santander see net quarterly profit of €2.4bn. It says it is confident it will hit its full-year targets. Declining ad revenue causes Google parent company Alphabet to miss on its top and bottom lines for the third straight quarter. Microsoft shares are down despite beating estimates. It warns that its cloud business is experiencing a marked slowdown, posting its smallest revenue growth in 5 years.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

UBS suffers a 24 per cent drop in net profit but an improvement in net interest income as the bank navigates macro-economic headwinds going into the fourth quarter. HSBC posts a better-than-expected Q3 earnings despite rising impairments. Rishi Sunak becomes UK prime minister urging the Conservative party to ‘unite or die’. In tech news, Chinese tech loses $55bn on a single day on Wall Street as investors signal concerns about President Xi Jinping’s unprecedented third term.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

China GDP comes in short of Beijing’s official GDP data with Covid lockdowns affecting growth. President Xi Jinping consolidates his grip on power ahead of a third term in office. In the UK, former chancellor Rishi Sunak is set to become prime minister as soon as today after Boris Johnson withdraws his candidacy. In Italy, Giorgia Meloni is sworn in as prime minister to create the most right-wing cabinet wince WW2. Wall Street posted its best trading week since June amid reports that some Fed officials plan smaller interest rate hikes in the coming months.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 Liz Truss quits after just six chaotic weeks in the job. Sterling dips on the news ahead of an accelerated Tory leadership contest. A new Prime Minister is expected to be announced by next Friday. In Brussels, EU leaders meet late into the night with Germany’s Olaf Scholz dropping his country’s opposition to a gas price cap, provided sufficient supplies are secured. U.S. indices are in the red and both the 2- and 10-year yields hit levels not seen since 2008. In corporate news, sportswear giant Adidas cuts its full-year guidance blaming weaker demand in China and in the West and its departure from the Russian market. However, luxury firm Kering shrugs off any recession concerns to post a 14 per cent surge in Q3 sales despite Gucci lagging in China.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Tesla beats on the topline but misses revenue estimates which drives the share price down in extended trade. CEO Elon Musk is bullish, saying that the company’s market cap could eventually exceed that of Apple and Saudi Aramco combined. Beleaguered UK Prime Minister Liz Truss is rocked by the departure of Home Secretary Suella Braverman over immigration targets. Wall Street sees the 10-year yield rising to its highest level since 2008. Asian markets follow suit prompting the BoJ to put a floor under bond prices. And in earnings news, Swiss-Swedish industrial titan ABB posts a Q3 beat in orders and revenue and signals it will hit its 2023 margin targets a year early.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Netflix shares soar in extended shares on the news that the streaming giant has increased subscriber numbers by 2.4m in the third quarter to double expectations. Goldman Sachs tops quarterly earnings forecasts despite revenue and profit falling off. CEO David Solomon tells CNBC the lender is bracing for a downturn in the U.S. Wall Street enjoys a second straight day of gains on strong earnings despite a volatile session. U.S. futures are also set to move higher. New Hong CEO John Lee urges the territory to attract more global talent during his maiden address after Covid restrictions were eased. The EU moves to tackle high gas prices and to avoid an energy bidding war between member states. However it falls short of imposing an energy price cap. 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 Liz Truss says she recognises her mistakes and apologises for the way the mini-budget was launched and handled. Her new Chancellor Jeremy Hunt rips up the bulk of her economic programme in a bid to calm jittery markets. On Wall Street, tech stocks fight back, helping the Nasdaq to its best day since July. Bank of America shares surge following better-than-expected Q3 profits on the back of an increase in interest income. CEO Brian Moynihan tells our colleagues Stateside that U.S. consumer remains ‘very solid’. Credit Suisse is reportedly wooing the Abu Dhabi and the Saudi sovereign wealth funds for capital injections into its investment banking arm.   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 opens the Communist Party National Congress, hailing the nation’s battle against Covid while looking to secure a historic third term. Asian markets start in the red following a volatile week which saw the Dow drop 400 points. In the UK, new Chancellor Jeremy Hunt distances himself from his predecessor’s policies, causing the pound to surge. Meanwhile calls for Prime Minister Liz Truss to resign grow. IIF chair Axel Weber warns of a growing gap between monetary tightening and looser fiscal policy. We hear from Mercedes CEO Ola Källenius who says China will remain the car maker’s biggest market but voices concerns that future growth will be vulnerable to geo-politics and supply chain constraints.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

US stocks stage a massive comeback, with the Dow swinging 1,500 points, despite US CPI coming in hotter than expected. Chinese consumer prices rise by the most in more than two years, as the country's ruling party prepares to usher in a historic third term for President Xi Jinping. Kwasi Kwarteng heads home early from IMF meetings, amid speculation the government is considering yet another U-turn over its controversial ‘mini-budget’. However, the U.K. Chancellor says he is committed to the plan. LVMH's Antoine Arnault hails the resilience of the luxury sector throughout the pandemic, telling CNBC the stronger dollar is now boosting sales.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Bank of England snaps up £4.4 billion in Gilts in its biggest daily move so far, as the emergency programme enters its final 48 hours. U.K. Prime Minister Liz Truss says she will stick to her plans to not cut public spending. ECB hawks Robert Holzmann and Pierre Wunsch tell CNBC they expect rates to keep rising despite fears of a looming recession, with the benchmark rate possibly topping 3%. The Fed comes under further pressure in its inflation fight, with food and energy costs causing wholesale prices to rise more than forecast last month. EU energy ministers agree on plans for a joint gas buying scheme, but fail to strike a deal on a price cap.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Sterling see-saws after a report the Bank of England is preparing to extend its emergency bond-buying programme, despite Governor Andrew Bailey's message to markets that funds have just three more days to rebalance their positions. The International Monetary Fund slashes its global outlook and warns the world is on the brink of a 'painful' recession. Chinese authorities ramp up covid testing across some of the country, days ahead of the Communist Party Congress. In corporate news, LVMH toasts a third quarter sales beat, as the luxury giant sees a boost from the stronger dollar, with American tourists splashing out in European stores.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

JPMorgan CEO Jamie Dimon speaks exclusively to CNBC, saying U.S. stocks could double their losses on the year and defending the U.S. Government’s new restrictions on tech exports to China. A slump in semiconductor stocks sends the Nasdaq to a two-year low while selling continues in Asia, as chip giants in Taiwan, Japan and South Korea react to new US action against China. President Biden vows to deliver more air defense systems to Kyiv after Russian missiles strike cities across Ukraine, killing 14 and damaging key civilian infrastructure. Gilts come under renewed pressure after separate moves by the Bank of England and the U.K. Chancellor fail to quell concerns over Prime Minister Liz Truss’ economic strategy.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Global markets under pressure, as the Dow slumps after U.S. jobs data points to tightness in the labour market, while investors look ahead to a crucial week for data and earnings. Fresh data flashes warning signs for the Chinese economy, as the services sector contracts for the first time in four months, while the chip sector drags stocks lower after the US announces fresh restrictions. Russian President Vladimir Putin accuses Ukraine of a "terrorist act" after a bridge linking Crimea to Russia is hit by an explosion, disrupting a key military supply line. Nissan reportedly pushes Renault to sell down its stake in the Japanese carmaker, as part of talks that would see the auto giants create a joint venture to accelerate the development of electric cars.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Credit Suisse sets aside CHF3bn to launch a public tender off with the aim of buying back its debt securities. The IMF warns of an upcoming global growth downgrade. Managing Director Kristalina Georgieva tells CNBC that “multiple shocks” are to blame and that drastic central bank moves are required to rein in inflation. The Dow is down but Wall Street is still set for a large weekly gain ahead of the non-farm payrolls. We are live in Prague at the inaugural summit of the European Political Community where Polish PM Mateusz Morawiecki tells us Germany’s addiction to cheap Russian gas and its “disastrous” energy policy have left the rest of Europe in a vulnerable position. And in tech news, Samsung posts its first quarterly decline for 3 years as it wrestles with a global slowdown and reduced memory chip demand.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Opec + members slash output by 2m bpd, pushing up oil prices to a three-week high. The cartel’s secretary-general, Haitham Al-Ghais, tells CNBC the cut was not a political decision. The U.S., however, accuses Opec of siding with Russia and ‘shortsightedness’ for the reduction in production. The Biden administration immediately orders more oil to be released from its SPR. Ratings agency Fitch is the latest to issue a negative outlook warning for the UK. Elon Musk and Twitter could reportedly resolve their litigation wrangles later this week. The Tesla boss has launched plans to transform the social media platform into a ‘super-app’.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Opec+ members are reportedly considering a 2m bpd output cut ahead of its first in-person meeting in more than 2 years. Softer economic data inspires hopes of less drastic Fed tightening moves, which helps the S&P 500 log its best two-day gain in more than two years. Elon Musk agrees to purchase Twitter for the original $44bn sale price and will likely avoid the deal being dragged through the courts. And in corporate news, HSBC shares hit a 20-month high after reports the bank is set to offload its Canadian unit. And UK PM faces a further division from within her cabinet and party after refusing benefits increases in line with inflation.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.