Squawk Box Europe Express

Sweden and Finland make the historic decision to join NATO. We are live in Stockholm where the Swedish Prime Minister Magdalena Andersson tells CNBC the country is braced for any retaliation from Russia. The G7 warns of a potential global food crisis, accusing Russia of waging a ‘grain war’, while India bans all wheat exports. EU trade commissioner Valdis Dombrovskis says protectionism will only aggravate the issue. April economic data in China is heavily impacted by rolling Covid lockdowns while soaring energy prices boost Saudi Aramco to post its largest quarterly profit since listing.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 admits that the central bank could have moved faster in raising interest rates and that he was unable to guarantee a ‘soft landing’ as April producer prices soared by 11 per cent. Wall Street caps another volatile session with U.S. stocks suffering their worst weekly performance since January. In crypto news, the collapse of stablecoins Terra and Tether raises fears of contagion in the market as Bitcoin falls to its lowest level in 16 months. And in Schleswig-Holstein, Germany, G7 foreign ministers meet to further underline their support for Ukraine. EU Foreign Affairs High Representative Josep Borrell tells CNBC that the Russian invasion will have far-reaching consequences globally.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. inflation slows for the first time in nine months, however the headline and core prints still come in above expectation. The Nasdaq suffers steep losses with Apple weighing. The tech giant loses its crown as the world’s most valuable company to oil behemoth Saudi Aramco. Strong Disney+ subscriptions fail to help Disney shares in extended trade after its CFO Christine McCarthy warns of softer streaming growth to come. And in autos news, VW CEO Herbert Diess has defended his call for a negotiated settlement in Ukraine, telling CNBC he is not putting commercial interests ahead of the human cost of the war.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese consumer prices are up at their fastest rate in five months as rolling Covid lockdowns continue to impact production and supply. U.S. President Joe Biden has prioritised inflation as his top economic challenge as key data out today hints that price pressures Stateside could be finally peaking. The S&P 500 index and the Nasdaq are up but the Dow posts a fourth-straight negative session. Billionaire hedge fund investor Leon Cooperman says the market has not yet bottomed out. We hear from Finnish foreign minister Pekka Haavisto who says his country is fast-tracking NATO application, possibly moving as early as next Monday.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 sinks below the 4,000-point level – its lowest in more than a year - as the tech sell-off accelerates. The past three sessions have seen more than $1tn in mega-cap losses. Oil is down on demand concerns while the 10-year Treasury bill reaches its highest level since late 2018. In forex news the dollar is at a near-two decade high while cryptocurrencies are down, with Bitcoin leading the losses. And in autos news, Tesla has once again been forced to halt production at its Shanghai plant over supply issues while CEO Elon Musk hints at a potential agreement with the EU over Twitter’s regulation.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. slaps a raft of fresh sanctions on Russia, targeting the country’s financial sector. We hear from former NATO Secretary-General Anders Fogh Rasmussen who says the West has underestimated Russian President Vladimir Putin on several levels. U.S. and European futures are in the red following last week’s turmoil with fresh inflation data and Fed speak coming this week. In China, export growth slumps to its lowest level in 2 years as Beijing’s zero-Covid approach hits both manufacturing and output.  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 see enormous and abrupt moves following post-Fed gains with the Dow losing more than 1,000 points in its worst session since 2020. The 10-year Treasury bill surges to more than 3 per cent. The dollar strengthens to two-decade highs against various currencies ahead of an expected solid April jobs report. In Asia, tech stocks sell off sharply following last night’s Nasdaq slump – its worst session in 2 years. The BoE gives a pessimistic outlook for the UK economy, saying that price inflation may reach up to 10 per cent this year while interest rates could hit levels not seen since 2009.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Fed follows through on its promise to hike rates by 50 basis points – its biggest move in 22 years. Wall Street is buoyed by Chairman Jerome Powell’s comments to CNBC, playing down talk that the FOMC could move to 75bps. The BoE is expected to make its fourth straight hike of 25bps as UK inflation hovers at a 30-year high. In China, services are hard-hit by Beijing’s continued rolling Covid lockdown measures. April activity was down at its second-steepest level, hurting supply and demand. And in banking news, Société Générale has raised its bad loan provisions relating to Russia which mars its Q1 surge in trading revenue.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Ride-hailing app Lyft suffers a bumpy ride with a quarter of the company’s value wiped off in extended trade. The Federal Reserve is expected to hike rates by 50bps amid surging inflation and a tight labour market. Billionaire investor Paul Tudor Jones says the central bank’s governors are in “uncharted waters”. Natural gas is up ahead of an expected sixth round of sanctions by the EU on Moscow. This time an oil embargo is potentially on the table. Tesla CEO Elon Musk warns that some commercial and government bodies may be required to pay to use Twitter under his ownership.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. ten-year Treasury yield surpasses 3 per cent for the first time in fours years while stocks rally after the S&P 500 and the Nasdaq hit fresh lows for the year. The FOMC meets with expectations of a 50bps hike. Goldman Sachs CEO David Solomon says he believes the U.S. can avoid recession. Germany has said it will withstand a Russian oil embargo as the EU prepares a sixth package of sanctions against Moscow. In banking news, top HSBC stakeholder Ping An reportedly calls for the break-up of the lender while BNP Paribas beats expectations with Q1 profits surging 19 per cent. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Nasdaq marks its worst month since 2008 with rising rates and inflation weighing heavily on the tech sector. We hear from Berkshire Hathaway CEO Warren Buffett who says “inflation swindles almost everybody”. The legendary investor is taking large bets on the U.S. markets despite seeing “market mania”. In Asia, stocks slide after Chinese manufacturing hits its lowest level in 2 years with Beijing’s zero-Covid approach taking its toll on the economy. And in Ukraine, House Speaker Nancy Pelosi visits President Volodmyr Zelenskyy.  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 bounce back with the Nasdaq enjoying its best day for a month. However, Apple’s share price drags in extended trade, however, after CEO Tim Cook warns of an $8bn hit due to continuing Covid and supply constraints. Amazon is also in the red after reporting its first quarterly loss in 7 years, weighed down by its stake in EV maker Rivian. CFO Brian Olsavsky says that inflation is here to stay. Elon Musk makes a one-off sale of Tesla stock to help fund his Twitter deal.  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 big earnings week on both sides of the Atlantic. Facebook parent Meta smashes Q1 expectations with the stock soaring 18 per cent in after-hours trade. However, COO Sheryl Sandberg tells CNBC that the outlook remains challenging. Asia-focused lender Standard Chartered hikes income guidance after a strong start in 2022 but it remains cautious on Covid fallout in China. In foreign exchange news, the dollar hits a 20-year high against the yen after the Bank of Japan resists the urge to raise interest rates. The euro, however, falls to its lowest level against the greenback in five years as Russian gas payment tensions continue throughout the bloc.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Tech stocks hit a 12-month low, compounding heavy losses for US markets in April and pulling the Nasdaq down to its worst day since September 2020. Meanwhile, Russia appears to come good on its threat to begin using its gas exports as a tool in its war with Ukraine, and standoff with Western allies. Moscow cut off gas supplies to Poland and Bulgaria, in what a top Ukrainian official calls 'the beginning of the gas blackmail of Europe'. And, we are in the thick of earnings season. Credit Suisse announced major changes at the top and reveals adjustments to its executive board, while confirming a first quarter loss and a tough time for client activity. In U.S. tech, a stronger than expected forecast sends shares of Microsoft higher in extended trade, but Alphabet disappoints on declining YouTube revenue. CFO Ruth Porat attributes part of the disappointing quarter to the tech giant's pull-back from Russia.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do

Elon Musk’s Twitter bid is successful after the social media group's board approves his 44 billion dollar takeover bid. The acquisition sparked a flurry of speculation over what the future of the platform may hold. The PBOC pledges more economic support, after Chinese equities post their worst day since February 2020, pushing Asian equities higher. HSBC beats expectations despite posting a near 30 percent fall in first quarter profit as Covid and inflation weigh on revenues at Europe's largest lender. CFO Ewen Stevenson tells CNBC that rate normalisation is a bright spot. And, profit at Swiss bank UBS tops forecasts at over 2 billion dollars in the first quarter, as higher trading volumes boost the bottom line, offsetting the impact from its exposure to Russia.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

CNBC is live from Paris where Emmanuel Macron has become the first French President to be re-elected in 20 years. The incumbent defeated his far-right rival with 58 point 5 percent of the vote. He told CNBC now is the time to get to work after divisive elections. National Rally leader Marine Le Pen conceded defeat, but hailed a stronger showing compared to 5 years ago and pledged to redouble efforts ahead of legislative elections in June. Global equities come under pressure, with US futures lower, after the Dow suffered its worst one-day loss since 2020 amid a four-week losing streak. Asian equities sink as Beijing races to contain an "urgent" COVID outbreak, while the death toll in Shanghai triples - dimming prospects of lockdown measures loosening. Earnings once again take centre stage with Alphabet, Amazon and Apple all reporting this week.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Treasury yields climb and global markets tumble as Fed Chair Jerome Powell tells CNBC during an IMF debate that a 50 basis point hike in May is firmly on the table. French election campaigning enters its final stretch, and polls show President Emmanuel Macron widening his lead over far-right challenger Marine Le Pen ahead of Sunday's vote. Finance Minister Bruno Le Maire tells CNBC exclusively that Macron is the only real option. Earnings season is ramping up, we take a look at Kering, which posted double digit revenue gains in the first quarter, but the French luxury group acknowledges that lockdowns in China have had "heavy consequences". And Elon Musk doubles down on his play for Twitter, saying he's lined up $46 bn dollars in financing to buy the social media giant, putting pressure on the company's board to negotiate a deal or come up with an alternative plan.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Netflix plunges with more than $50bn wiped from its market cap. Legendary investor Bill Ackman also takes a $400m hit to his Pershing Square fund as a result. EV maker Tesla reports record Q1 profits, this despite the shutdown of its Shanghai giga-factory during the mega-city’s ongoing Covid lockdown. CEO Elon Musk has told CNBC he hopes to avoid further price hikes. French presidential candidates Emmanuel Macron and Marine Le Pen lock horns during the only televised debate before Sunday’s poll. The cost of living and the Ukraine-Russia conflict were front and centre in the two-and-a-half hour contest. Russia has announced the launch of a new ‘Sarmat’ ICBM capable of hitting multiple targets anywhere in the world.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Streaming giant Netflix suffers its first subscriber loss in more than a decade as consumers cut back on entertainment and the company forecasts worse to come. CEO Reed Hastings has suggested a cheaper advert-supported plan now “makes a lot of sense”. In banking news, Swiss lender Credit Suisse warns it will take a CHF200m hit in the first quarter through exposure to the war in Ukraine while also increasing its loan loss provisions from its latest string of scandals. Meanwhile, the IMF slashes its global outlook and warns of risks to financial systems. The fund’s Tobias Adrian tells CNBC that the Fed must act “aggressively” to tame spiraling inflation. And U.S. markets lead Asian equities into the green with bank and tech stocks and recovering oil prices fuelling the gains.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The World Bank has slashed its global growth outlook for the year as price pressures, the conflict in Ukraine and ongoing lockdowns in China begin to weigh. President David Malpass tells CNBC that it’s up to advanced economies to do more to subdue rampant inflation. St Louis Federal Reserve President James Bullard tells us he would not rule out a 75-basis point hike in a single meeting, as the 10-year Treasury yield surges to its highest level for more than three years. And Twitter attempts to thwart Elon Musk takeover attempt with a ‘poison pill’. CNBC learns that private equity firm Apollo is in line to finance the buyout.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.