Squawk Box Europe Express

Gazprom reportedly claims Siemens Energy must carry out maintenance work on the Nord Stream 1 pipeline before gas supply to Europe can resume. Brussels is suggesting an EU-wide gas price cap. Enagas CEO Arturo Gonzalo tells CNBC that Moscow’s behaviour will only serve to strengthen Europe’s resolve to stop dependence on Russian hydrocarbons. Liz Truss becomes the next UK prime minister and is due to receive the keys to 10 Downing Street later today. In Australia, the RBA raises interest rates by 50bps in a bid to rein in price pressures. And in energy news, Opec+ announces a ‘miniscule’ cut of 100,000bpd from October.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Gazprom indefinitely cuts gas supplies to Europe via the Nord Stream 1 pipeline. We hear from EU Commissioner Paolo Gentiloni at the Ambrosetti Forum who says that the Kremlin is weaponising energy but insists the West will not flinch. Sweden, Finland and Germany have scrambled to announce energy support packages, warning of a Lehman Bros-moment for the sector. In the U.S., equities are in the red for the third straight week despite solid August jobs numbers. Republican senator Lindsey Graham tells CNBC that Donald Trump must focus on policy should he decide to run for President in 2024. In Italy, Giorgia Meloni’s Fratelli d’Italia party leads polls just weeks before the general election. We speak to Democratic Party leader Enrico Letta who believes his party offers a viable alternative vision for the country. We are also live in Downing Street ahead of the Conservative Party leadership contest result.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do

We are live on the shores of Lake Como in Italy for the Ambrosetti Forum as Italy announces a multi-billion euro inflation-busting emergency programme. This as the 10-year yield hit 4 per cent for the first time since June. However, Ambrosetti CEO Valerio De Molli tells CNBC that the country is not about to slip into another debt crisis. Investors anticipate the U.S. August jobs report with the Dow breaking a four-day losing streak. Russia vows to stop selling crude to nations supporting an oil price cap. Brent and WTI gain in early trade. And in food and beverage news, Starbucks unveils Laxman Narasimhan as its new CEO in a bid to impose the coffee chain giant’s Reinvention plan.  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 are set to start the new month in the red following their worst monthly performance in seven years. Treasury yields continue to rise as Cleveland Fed President Loretta Mester pours cold water on hopes inflation has been tamed. In Covid-hit China, factory activity contracts for the first time in August. Growth concerns weigh on crude prices which have suffered their worst losing streak since April 2020. Shares in Nvidia and AMD slump after Washington curbs exports to Beijing. And in the UK, sterling posts its steepest monthly decline since Brexit as Conservative Party leadership hustings draw to a close.  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 continue their slide in the red with the S&P 500 dipping below its 50-day moving average. Richmond Fed President Thomas Barkin, however, says a recession is not inevitable. We hear from French Finance Minister Bruno Le Maire who says that he backs emergency measures to rein in rampant energy prices throughout Europe. Russia cites maintenance issues as it turns off gas supplies into Europe via the Nord Stream 1 pipeline, which had already been functioning at just 20 per cent capacity. In China, factory activity falls yet again in August, hamstrung by Covid outbreaks and power outages. World leaders pay tribute to the last Soviet leader, Mikhail Gorbachev, who has died aged 91.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asian markets stage a rebound following more declines from U.S. markets overnight. Treasury yields also climb with the 2-year bill hitting its highest level since 2007 following Federal Reserve Chairman Jerome Powell’s Jackson Hole comments last week. ECB chief economist Philip Lane has said he backs incremental rate hikes, warning that bigger increases could have adverse effects on the bloc. The EU has set out emergency measures to decouple electricity and gas in a bid to rein in ‘skyrocketing’ energy costs. In China, tech firms continue their slump, logging their worst earnings quarter ever. There is one outlier – e-retailer Pinduoduo – which posts better=than-expected Q2 numbers.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow drops 1,000 points following Federal Reserve Chairman Jerome Powell’s Jackson Hole speech. Powell sparked a global sell-off after warning of increased pain to come in the struggle against rampant inflation. The ECB follows suit, predicting further sacrifices to curb price pressures on this side of the Atlantic. In China, July’s industrial profits slump on the back of continuing Covid restrictions and power outages hit factory performance. Regulators have called on banks to provide more support. And in crypto news, Bitcoin is on course for its fifth day of declines, dipping below the $20k mark amid concerns about the Fed’s rate hike trajectory.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow finishes in the green with U.S. markets eagerly anticipating Federal Reserve Chairman Jerome Powell’s Jackson Hole speech later today. Fed officials speaking to CNBC at the Wyoming symposium have reiterated the need to keep raising interest rates to bring down U.S. inflation. President Biden signs an executive order to boost chip production. At a mid-term elections rally in Maryland he called Trump philosophy ‘semi-fascist’. In Zaporizhzhia, Ukraine, back-up systems have sparked into action following shelling at Europe’s largest nuclear plant, which disconnected it from the country’s grid. British energy regulator Ofgem prepares to lift the price cap, causing bills to soar for millions of households from October.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 are in the green after three negative sessions with investors seeking further Fed clarity ahead of the start of the Jackson Hole Symposium today. President Biden fulfills his 2020 campaign promise of student loan forgiveness one week before a moratorium on payments and interest. The move will affect millions of graduates with $10,000 debts. Tesla undergoes its second stock split in 2 years on a 3-for-1 basis. In Germany, Economy and Climate Protection Minister Robert Habeck announces energy-saving measures designed to save 2 per cent of gas consumption this 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. indices are down for their third straight session following further hawkish comments from the Federal Reserve. Investors’ expectations that Chairman Jerome Powell would move away from the central bank’s tightening progamme have been dampened. In energy news, crude is also down on anticipation that any Opec+ output cuts could coincide with the return of Iranian oil to markets as part of a renewed nuclear deal. Chinese e-commerce giant feels the strain of continuing Covid restrictions in the country, posting a record-breaking slow quarter. And the U.S. is set to unveil a $3bn security package for Ukraine which is today marking six months since Moscow’s invasion of its territory.   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 session in June with the 10-year Treasury yield hitting 3 per cent. Investors are anticipating Fed rate setters will double-down on their hawkish positions at the Jackson Hole Symposium later this week. In forex news, the dollar is up while the euro plunges to a two-decade low. German Chancellor Olaf Scholz visits Canada to seek alternative energy sources following the Russia’s invasion of Ukraine. In China, the PBOC is set to off $29bn worth of special loans to property developers in order to stabilise a worsening housing crisis. And in retail news, Adidas announces the surprise departure of CEO Kasper Rørsted.    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 breaks a 4-week rally and Treasury yields rise ahead of the Jackson Hole meeting of central bankers this week. Beijing cuts its base lending rate in a bid to revive its faltering economy amid extended Covid restrictions and a property sector crisis. Russia is set to undertake a further 3 days of ‘planned maintenance’, halting natural gas deliveries to Europe. And in entertainment news, Cineworld is reportedly to file for bankruptcy, citing a lack of blockbuster movies.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 look to attempt to revive their recent rally. The S&P 500 is on track to end its fifth straight week in the green. St. Louis Federal Reserve President James Bullard has repeated his call for a further 75bps hike in September. Home goods retailer Bed, Bath & Beyond sees shares nosedive after billionaire investor Ryan Cohen withdraws his entire stake in the company. Also in the U.S., Kohl’s beats expectations but shares fall on the news that the department store chain has cut its guidance as middle income consumers feel the inflation pinch. Greece prepares to formally exit Brussels’ ‘enhanced’ fiscal surveillance programme to mark the end of its debt crisis.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow’s five-day winning streak ends and Treasury yields grow as the Federal Reserve admits its aggressive tightening policy has been risky and that inflation still shows no signs of receding. We hear from the new Opec Secretary General Hathaim Al-Ghais who says Chinese consumption fears are exaggerated and that a return to pre-Covid demand depends on jet fuel recovery. In the U.S. Target misses Q2 expectations and sees profits plunge by 90 per cent despite discounts on clothing and electronics.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

It’s a fifth straight day of gains for the Dow since May. Retail stocks have been particularly resilient. Walmart ups its full-year guidance after beating both Q2 revenue and earnings forecasts. Shares are up by 5 per cent for the retail giant. CEO Doug McMillon remains cautious, telling this channel that inflation is hurting U.S. consumers, forcing them to adapt their shopping habits. In China, an extended heatwave has prompted authorities to shut down factories in southern provinces for six days to save electricity. And in energy news, crude prices recover and there are signs the oil market is tightening following a drop in U.S. stockpiles.  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. markets rally continues with the Dow closing above its 200-day moving average for the first time in four months. Disney shares are up on the news that investor Daniel Loeb’s Third Point is to buy a new stake in the entertainment giant. The hedge fund manager has also written to CEO Bob Chapek urging him to spin off sports network ESPN. In mining news, BHP posts its best profit in 11 years and has suggested it may improve a bid for Oz Minerals. And in Germany has introduced a new gas price levy on households and businesses with Energy Minister Robert Habeck blaming Russia for allegedly weaponising resource security in the wake of the Ukraine conflict.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Weaker-than-expected retail and factory data prompts the Chinese central bank to slash the key lending rate as its zero-Covid strategy continues to impact the country’s economy. The S&P 500 posts its fourth consecutive winning week ahead of a slew of U.S. retail earnings. However, Richmond Federal Reserve President Thomas Barkin tells CNBC that demand is softening. In energy news, Saudi Aramco hits a record $48.4bn profit in the second quarter.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The recent U.S. equity rally stalls despite July wholesale prices showing a surprise decline. Treasury yields edge higher on anticipation the Federal Reserve can achieve a ‘Goldilocks’ soft landing. In pharma news, GSK, Sanofi and Haleon all see shares slump due to continuing litigation issues relating to a recalled heartburn drug. UK GDP figures are due out with soaring utility prices set to weigh heavily. And U.S. EV maker Rivian posts a Q2 loss of $1.7bn, sending shares tumbling in after-hours trade.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Nasdaq bounces back to bull market territory following yesterday’s better-than-expected inflation report. U.S. President Joe Biden says a lot more needs to be done to bring prices down. Treasury yields also contract on investor anticipation of less aggressive rate hikes but three Fed officials maintain there will further rises this year. Disney shares are in the green in extended trade on strong Disney + subscriber numbers. The entertainment giant has announced a price hike for the streaming service. And in Asia, Soft Bank has cut its Alibaba stake to 14.6 per cent to raise $34bn in a bid to bolster its balance sheet.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Expected U.S. inflation data causes both U.S. and Asian equities to fall, with consumer prices rising at their fastest rate in 2 years. Chip maker Micron posts a weaker-than-expected forecast with continuing supply chain headwinds impacting sentiment. Elon Musk sells almost $7bn of Tesla shares in anticipation of the possibility he may be forced to complete the Twitter purchase. In the UK, ministers warn of possible power blackouts this winter and prepare for worst-case scenarios should energy prices continue to soar.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.