Squawk Box Europe Express

U.S. equities snap a three-day losing streak as tensions between Russia and Ukraine show some signs of easing. Crude prices remain stable as Russia claims to withdraw some forces from the border, but President Biden warns that the West will remain alert to further moves by Moscow in the region. In China, factory prices surge more than 9 per cent for the year despite inflation figures coming in lower than expected. We also hear from ECB board member, François Villeroy De Galhau who says that the central bank may begin winding down its asset purchase programme but that talk of rate hikes remains “premature”.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 to temporarily move its embassy from Kyiv to the western Ukrainian city of Lviv after U.S. Secretary of State Antony Blinken warns of a dramatic increase in Russian troops along the border. German Chancellor Olaf Scholz is due in Moscow later today for talks with President Putin. The tensions are felt throughout U.S. markets which closed lower and saw the 10-year Treasury yield briefly surpass 2 per cent. CNBC hears from St Louis Fed President James Bullard who says the Federal Reserve must act sensitively when hiking rates. Ongoing uncertainty about a potential Russian invasion of Ukraine has also hit crude prices which had been at a seven-year high. However, BP CEO Bernard Looney tells CNBC his company is committed to its business in Russia. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

It’s been a weekend of high-end diplomacy throughout Eastern Europe. President Biden has spoken to both President Putin and his Ukrainian counterpart Volodomyr Zelenskyy after U.S. intelligence suggested that a Russian invasion of Ukraine could happen “any day now”. Germany is among more than a dozen nations warning its citizens to leave Ukraine as Chancellor Olaf Scholz prepares to visit Kiev in a show of solidarity. Tensions are felt across Asian equities after Wall Street saw a late sell-off on Friday while crude prices surge over the $95 mark. In France, Les Républicains presidential candidate Valérie Pécresse holds a major rally in Paris. Her spokesperson Alexandra Dublanche tells CNBC she represents a serious threat to Emmanuel Macron.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

US consumer prices surge to a 40-year high in January, sending the 10-year Treasury yield past the 2 percent mark. But, President Biden tells NBC he still believes price pressures will ease despite persistent inflation prints. Markets respond as yields spike and the Dow drops more than 500 points, with hawkish comments from St. Louis Fed President James Bullard compounding the tech stock losses. Meanwhile, talks in Berlin fail to de-escalate the Russia-Ukraine crisis. The UK Foreign Secretary's mission to Moscow also comes up short, after sharp exchanges between Liz Truss and Sergei Lavrov. And France goes all in on nuclear. President Macron announced the country’s “nuclear renaissance,” after giving the green light for at least half a dozen new reactors, which he says will help push the country towards carbon neutrality.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 more-than CHf2 billion net loss in the fourth quarter, as the embattled lender claims this will be a "transitional year" following a series of scandals. Net income at Société Générale almost quadruples in the fourth quarter, boosted by strong equity trading revenues as the French lender says it is entering 2022 with confidence. Strong demand in China and the U.S. sees L'Oréal full-year revenue jump 16% - as CEO Nicolas Hieronimus hails an "historic year" for the beauty group. And, Disney shares jump in extended trade as streaming subscriptions beat estimates and theme park business roars back to life. CEO Bob Chapek tells CNBC the decision to raise prices at peak times is just part of the "circle of life".See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Peloton shares surge after the exercise bike maker announces major overhauls, slashing targets, cutting thousands of jobs and installing a new CEO. It’s a busy day for global earnings, with cost pressures affecting most manufacturers. Toyota quarterly profit tanks 20 percent as the world's largest automaker cuts its production targets amid the global semiconductor shortage. Italian lender Banco BPM swings to a fourth quarter profit - beating expectations on higher revenues and shrinking loan loss provisions. And European leaders agree on the need to show a unified front and pull all the stops to avoid war in Europe, as Russia and NATO continue to mobilise forces.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Softbank's 66 billion dollar sale of ARM to Nvidia collapses under intense regulatory pressure, with the Japanese investment giant opting to pursue a 2023 IPO for the chip business instead. Still in the chip space, CNBC learns Tesla is tweaking steering components in some made-in-China cars, in a bid to meet sales targets amid the global chip shortage. Meanwhile the SEC subpoenas Tesla over fraud allegations in Elon Musk's tweets. Another big posts a beat. BNP Paribas has an upbeat fourth quarter and sets out a new growth strategy to 2025. CFO Lars Machenil tells CNBC the bank is prepared for any ECB rate hikes. And, US President Joe Biden draws a line in the sand, threatening to put an end to Nord Stream 2 if Russian soldiers set foot in Ukraine - after meeting with German Chancellor Olaf Scholz in DC.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese stocks kick off the Year of the Tiger on a high following a strong week on Wall Street, which saw the best performance from the S&P 500 so far this year. U.S. 10-year yields surged to their highest level in more than two years following a far better-than-expected January jobs report. Russia-Ukraine tensions continue to brew with Washington saying that Moscow has lined up to 70 per cent of the troops and hardware required for a full-scale invasion of its southern neighbour. German Chancellor Olaf Scholz has defended Germany’s NATO contribution on his way to meet with President Biden. Meanwhile, French President Emmanuel Macron has told newspaper Journal de Dimanche that he believes he can de-escalate the crisis during his visit to meet with President Putin in Moscow today. And in M&A news, shares of fitness equipment maker Peloton soar by more than 20 per cent on reported interest from Amazon and Nike.   See Privacy Policy at https://art19.com/privacy and California Privacy

U.S equities close sharply lower as Meta breaks a one-day record for market cap loss with more than $230bn wiped from its value. However, U.S. futures are buoyed by strong earnings from Amazon and Snap. Tensions are still high in Ukraine and the White House claims Russia is planning a ‘false flag’ incident to force a pretext to invade the country. We hear from Julianne Smith, U.S. ambassador to NATO who says the alliance is keeping the door for diplomacy wide open. BoE governor Andrew Bailey tells CNBC that the higher rate path is still uncertain due to an unpredictable growth outlook. Four MPC members pushed for a larger 0.5 per cent interest rate hike to check ballooning inflation.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Meta suffers a share wipe-out in extended trade with $210bn disappearing from its market cap. It’s the largest quarterly miss for the company formerly known as Facebook and has caused Nasdaq futures to slide by more than 300 points. The Nikkei also turns red. Streaming platform Spotify plunges despite a beat on the top and bottom line on weak predicted subscription numbers. We are also live at the ECB as well as the Bank of England where a second consecutive rate hike of 25 basis points is expected.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Google parent company Alphabet posts a big Q4 profit beat and launches a 20-for-1 stock split. We have a slew of European corporate earnings today, too. Spanish lender Santander records more than €2bn in quarterly profits on strong customer growth and Julius Baer reports a record-breaking full year. Swiss pharma giant Novartis is courted by a number of private equity suitors keen on its generic drugs arm Sandoz. We are also live in Kiev, as Russian President Vladimir Putin accuses NATO of having ‘played’ his country over security concerns on the east Ukrainian border. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

UBS overcomes higher litigation costs, reporting a 14 per cent rise in full-year net profit. The Swiss lender launched a new set of ambitious targets to capitalise on recent performance and plans to buy back $5bn of shares in 2022. The S&P 500 wraps up a torrid January in the red – its worse month in two years. In the UK, the fallout from the Sue Gray ‘partygate’ report continues. Prime Minister Boris Johnson has refused to step down but has apologised over multiple breaches of Covid regulations at No.10 Downing Street. And in M&A news, Sony swoops in for video game maker Bungie in a deal worth $3.6bn.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street looks set to close the month sharply lower, with the Nasdaq set for its worst month since 2008 as investors prepare for tighter Fed policy. The U.K. targets Russian oligarchs amid red-hot tensions between Kyiv and Moscow, with Foreign Secretary Liz Truss saying new sanctions will send a clear message. In Italy, Sergio Mattarella signs on for a second term as President, after lawmakers fail to agree on a compromise candidate. And, Vodafone comes under activist attack – as Cevian Capital reportedly builds a stake and calls for structural change.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Apple reports its best quarterly earnings ever, beating expectations for Mac and iPhone sales over Christmas. On a conference call, CEO Tim Cook says that supply chain issues are showing signs of fading. Not so for Tesla, however, with shares dragging down Wall Street during another volatile session on Thursday after CEO Elon Musk sounded a warning over chip shortages. Luxury giant LVMH enjoys record FY profits and sales buoyed by demand for high-end accessories in the U.S. and China. And President Biden has warned Ukrainian President Volodomyr Zelenskyy that an invasion by Russian forces may be imminent after Pentagon reports of further troop build-ups at the border overnight.   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 all but confirms a March rate hike at the next FOMC meeting. He hints there will be more to come, again causing waves on Wall Street. Asian markets and U.S. futures slumped into the red, while short-term Treasury yields neared two-year highs following Powell’s speech. Earnings season is under way with Tesla posting record Q4 results and issuing positive guidance, but CEO Elon Musk admitted continuing chip shortages would constrain new vehicle production. In politics, the U.S. ambassador to Russia hand-delivers Washington’s response to Moscow’s security demands on Ukraine and NATO expansion.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow swings from an 800-point loss back into the green before sinking into the red once more. Hayman Capital Management’s Kyle Bass tells CNBC that the Fed is a tinder box for markets, ahead of today’s crucial decision where it’s expected to signal the first rate hike in more than three years. U.S. President Joe Biden reiterates warnings to Russia against invading Ukraine, saying that any such move would “change the world”. Microsoft delivers a Q4 beat on the top and bottom lines, with a strong outlook, but shares have suffered in the recent tech sell-off – on course for its worst month in more than a decade. 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 ride a rollercoaster session on Monday – making their biggest intraday comeback since the GFC - with the Dow recovering more than 1,000 points. Asian equities fail to follow suit, with the Nikkei slumping to a two-year low. Credit Suisse warns fourth-quarter profit will be negatively impacted by litigation costs of around CHF500m with the lender saying it now only expects to roughly break-even. Moscow says the U.S. and NATO are ramping up tensions over Ukraine as President Biden places 8,500 troops on high alert and NATO sends warships and jets to the region. And in Italy an impasse over the presidential vote looms after more than half of lawmakers’ ballots come back blank in the first round.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 and the Nasdaq both post their worst week since the start of the pandemic, with markets skittish ahead of this week’s Federal Reserve meeting. We hear from IMF managing director Kristalina Georgieva who says central bank clarity is vital for global economic recovery. Georgieva spoke to us during a Davos Agenda panel on the global economic outlook, which also featured the ECB's Christine Lagarde, the BOJ's Haruhiko Kuroda, as well as Brazil's Economy Minister and Indonesia's Finance Minister. In Italy, former Prime Minister Silvio Berlusconi drops out of the presidential race. Current prime minister Mario Draghi remains favourite to take over from Sergio Mattarella. Meanwhile, the U.S. recalls all non-essential embassy personnel from Kiev, as the UK government considers strident financial sanctions on Moscow in the event of an invasion of Ukraine. And in corporate news, Nelson Peltz’s activist hedge fund Trian snaps up a stake in Unilever on the back of shareholder frustration with CEO Alan Jop

Streaming giant Netflix sees shares plummet in extended trade, putting it on track for its worst day since 2012 as increased competition hits subscriber growth. The Nasdaq descends deep into correction territory as rate hike fears spook investors, but U.S. Treasury Secretary Janet Yellen tells CNBC inflation should fall back down towards 2 per cent later this year. Cryptocurrencies also take a hit, sinking to multi-month lows, with Bitcoin breaking below $40k. And U.S. Secretary of State Antony Blinken is set to meet his Russian counterpart Sergei Lavrov in Geneva, while Russia’s Ambassador to the EU tells CNBC in an exclusive interview that he hopes Washington will follow through on its security guarantees.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Higher treasury yields continue to pile pressure onto U.S. equities with tech stocks suffering in particular. The Nasdaq enters correction territory but BofA CEO Bran Moynihan tells CNBC the prospect of rate hikes signals that the worst of the pandemic effects on the economy are largely behind us. In a bid to prop up a slowing Chinese economy, the PBOC slashes a key lending rate for the first time in two years, sending Asian markets higher. Meanwhile, UK Prime Minister Boris Johnson has once again faced calls for his resignation over Covid rule-breaking allegations as well as a defection from his own party to Labour. In geo-political news, President Biden warns Russia of disastrous consequences should Moscow decide to invade Ukraine. This as, the EU foreign service head tells CNBC exclusively that the bloc should brace for conflict.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.