Squawk Box Europe Express

Anti-lockdown protests spread throughout Europe, with violent scenes rocking Brussels, Vienna and Amsterdam as cases continue to spike across the continent. A coalition government agreement in Germany is imminent with key roles for the FDP’s Christian Lindner and the Greens’ Annalena Baerbock and Robert Habeck. In corporate news, U.S. private equity giant KKR launches a €10.8 bn bid to take Telecom Italia private, while UBS says former Morgan Stanley president Colm Kelleher is to take over from outgoing chairman Axel Weber.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Germany unveils new restrictions limiting movement for the unvaccinated in a bid to curb further Covid infections, amid a spike in Europe. The S&P 500 and the Nasdaq hit new record highs with investors awaiting the result of President Biden’s choice for Federal Reserve chair. Meanwhile, Chinese online retail giant Alibaba sees shares nosedive as it posts a quarterly miss and slashes its guidance. And Apple sets its sights on launching a fully autonomous EV as soon as 2025.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Crude prices dip after OPEC and the IEA warn that supplies are building up, and the U.S. investigates whether prices are being manipulated, with President Biden calling for major consuming nations to release their reserves. In tech news, Nvidia beats expectations on strong demand for its AI chips but Cisco misses, cutting its full year guidance. Acting German Chancellor Angela Merkel says her country is seeing a ‘dramatic’ fourth Covid wave, while Belgian Prime Minister Alexander De Croo tells CNBC that his country is battling a strong mutation of the virus. We also hear from U.S. Former National Security Adviser John Bolton, who insists that Vladimir Putin is engineering the migrant stand-off on the Polish-Belarussian border. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Strong U.S. retail sales for October drive Wall Street gains as robust consumer spending continues despite rising prices. U.S. President Joe Biden is set to reveal the next Federal Reserve Chairman this week while CNBC hears from Deputy Treasury Secretary Wally Adeyemo, who says inflation will remain high all the while Covid is rampant. The fallout from Shell’s decision to quit the Netherlands continues, as an MP in The Hague threatens to slap it with an exit tax over its move to the UK. Meanwhile, shares in EV makers surge as Lucid overtakes Ford by market cap and Rivian becomes the word’s third most valuable auto maker.     See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. President Joe Biden holds his first direct talks with his Chinese counterpart Xi Jinping, and warns relations between the two nations should not descend into conflict. Cryptocurrencies slide as the U.S. infrastructure bill is signed into law. The Dutch government launches a last-ditch effort to convince Shell not to shift its tax base to the UK. Tesla CEO Elon Musk continues his stock selling flurry, sending the EV maker’s market cap beneath $1tn.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A last-minute commitment to phase down the use of coal at Cop 26 in Glasgow has been undermined by China and India, both of whom say the use of fossil fuels is key to economic growth. Unexpectedly strong retail numbers in China boost October consumer data, while industrial output for the month was also higher. U.S. President Joe Biden and Chinese President Xi Jinping are set to hold their first meeting, albeit virtually, with Taiwan expected to be central to talks. Meanwhile, violence broke out in the Netherlands where a three-week partial lockdown has been implemented while in Austria, unvaccinated residents have been ordered to stay home.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

COP26 enters its final day with countries yet to agree on a 1.5°C limit to global warming. The UN’s Secretary General says the goal is on ‘life support,’ while COP President Alok Sharma warns time is running out. Presidents Xi and Biden will reportedly meet virtually on Monday—right as the U.S. President ramps up restrictions on Chinese tech. EV maker Rivian is now worth more than General Motors, with shares soaring another 22% two days after going public. Tesla CEO Elon Musk takes a shot at his new rival. Meanwhile, Belarus threatens to turn off Europe’s gas supplies, amid an escalating migrant crisis at its western border.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. consumer prices rise at their fastest pace in over 30 years in October, jumping 6.2% and pushing yields higher, while major indices close in the red. Disney shares drop after the bell, as the House of Mouse reports lower Disney+ subscribers than expected, and posts its first earnings miss since the beginning of the pandemic. But, CEO Bob Chapek reaffirms his guidance and expansion plans to CNBC. Plus, the world’s two biggest carbon emitters come together at COP, as China and the U.S. announce a surprise plan to boost climate cooperation and cut emissions. And earnings season continues. Siemens tops sales and orders expectations for the fourth quarter, as the German corporate giant proposes a dividend of €4 a share. Zurich Insurance reaffirms its 2022 targets as it reports strong momentum across all business segments, and a strong capital position.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

China's factory gate prices hit a record high in October, inflated by rising raw material costs and continued supply chain concerns. U.S. producer prices also hit record levels, as attention turns to the crucial CPI data due today - while the Fed's James Bullard tells CNBC, exclusively, that the central bank is positioned to hike rates next year if needed. Rivian prices its IPO above the range, valuing the EV-maker upwards of $66 billion ahead of its Nasdaq debut. Meanwhile Elon Musk loses $50 billion in two days as Tesla's stock drops another 12%, amid the continued fallout from his Twitter poll on cashing out. And it's a busy day for earnings in Europe, with Siemens Energy, Allianz, Adidas, Ahold Delhaize, and Infineon all reporting. 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 breaks 4,700 for the first time, and the major indices close at record highs as infrastructure stocks pop on the back of President Biden's big spending bill. But Asian shares are mixed Tuesday, despite a surge in Softbank, after the group yields to investor pressure and unveils a $9 billion stock buyback. Crypto surges, with heavyweights Bitcoin and Ether both hitting new all-time highs ahead of a major Bitcoin software upgrade next week. The Netherlands joins a COP26 commitment to end public financing of fossil fuel projects, but some motor giants hold out on signing a deal to end new car emissions by 2040 - as former U.S. President Obama urges more action. And Euronext cuts ties with the London Stock Exchange for its clearing operations, saying it will clear all trades on its newly acquired Italian platform by 2024.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Biden's $1.2 trillion infrastructure bill passes the House of Representatives after months of political infighting, with a vote on the larger 'Build Back Better' bill in the days ahead. Wall Street hits record highs, as investors cheer a massively improved jobs report. But a slump in tech valuations across Softbank’s Vision Fund pushes it into the red for the second quarter, as the Japanese conglomerate posts a net loss of $3.5 billion dollars. Berkshire Hathaway's cash pile hits a record high, despite aggressive buybacks, and as third quarter operating profit jumps 18-percent on a continued recovery in its railroad, utilities and energy businesses. China posts a record trade surplus, as exports surge more than expected - with year to date exports now exceeding those for the whole of last year. And Engie enters exclusive talks with Bouygues over a 7-billion euro sale of its energy services unit, as the French energy group continues its shift to renewables.See Privacy Policy at https://art19.com/priv

Bank of England Governor Andrew Bailey hits back at criticism the central bank mislead markets after the surprise decision to keep rates on hold, telling CNBC the central bank hasn’t ever said it would raise rates this month. US jobless claims hit a fresh pandemic-era low, as attention turns to the nonfarm payrolls report, with 450,000 jobs expected to be added. OPEC+ nations dismiss US pressure to turn on the taps - rolling over the August production plan despite a surge in crude prices. And as the first week of COP26 draws to a close in Glasgow, negotiators are cheering progress on cash, coal, methane and trees.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Federal Reserve says it will start tapering its massive Covid-era stimulus programme and to slow bond-buying from this month. However, a rate hike is not on the cards. Meanwhile, the Bank of England is potentially willing to raise rates in the face of surging inflation, but the MPC vote is likely to be split with some members pushing to delay the move until December. A couple of big European lenders came out with results. Credit Suisse warned of a Q3 net loss, announcing a new group strategy, splitting the business into four separate divisions. And, Société Générale has had a surprise change of CFO as the French lender saw third quarter profits soar by 80 per cent amid a waning cost of risk. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Joe Biden slams Chinese President Xi Jinping’s decision not to attend the Cop26 climate summit and says that no date has yet been set for the pair to meet. We hear from BlackRock CEO Larry Fink, who says that the private sector risks ‘massive market arbitrage’ should it not catch up with public sector action on climate change. The Fed inches closer to tapering as markets hold at fresh highs. UBS chairman Axel Weber tells CNBC he’s not concerned about central banks taking action to anchor inflation expectations. Meanwhile, China’s services sector shrugs off inflationary pressures to grow in October off the back of rebounding demand. And in tech news, Facebook scraps its facial recognition system and also deletes a billion users’ online data.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

More than 100 nations attending the Cop26 summit in Glasgow have signed up to a deforestation pledge. We hear from U.S. climate envoy John Kerry who says negotiations so far have been ‘encouraging’. India’s Prime Minister has made one of the first major commitments of the conference, vowing to take his country to net zero emissions by 2070. Meanwhile, we have quarterly results from Standard Chartered and BP and we are also live at the Web Summit in Lisbon where Facebook whistleblower Francis Haugen has called for CEO Mark Zuckerberg’s resignation.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

We are live in Glasgow, Rome and London ahead of the landmark COP26 summit. UK Prime Minister Boris Johnson says humanity must not flinch in the face of the climate change. However, U.S. President Joe Biden voiced disappointment at the slow progress seen during the G20 in Rome and lashed out at the lack of climate commitment from China, Russia and Saudi Arabia. Washington and Brussels agree on lifting steel and aluminium tariffs while Italian PM Mario Draghi tells CNBC he has high hopes for a return to multilateralism. And in Asia, markets are broadly higher. The Nikkei is leading gains as Japan’s ruling LDP maintains its majority in parliament.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Apple fails to beat quarterly earnings expectations for the first time in 5 years. Despite Q3 revenue jumping by nearly 30 per cent, the tech giant has felt supply chain bottlenecks bite on phone and computer sales. Amazon also misses forecasts as the pandemic-era e-commerce effect begins to wane and consumers start switching back to physical stores. Its outlook for the Christmas period ahead also disappointed. Facebook has announced a rebranding, now calling itself Meta. The social media company looks to focus on a new vision for the internet. Meta CEO Mark Zuckerberg hopes to move on from recent scandals. In the U.S., the S&P 500 hits a new record high as investors ignore weak GDP growth data. The Nasdaq also hits an all-time peak. And, we hear from BNP Paribas CFO Lars Machenil who says the French lender is well positioned for continued gains after posting a near-5 per cent rise in Q3 revenues.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art

Airbus boosts its FY guidance as profits dip less than forecast on the back of pandemic belt-tightening. Shell faces activist investor ire as hedge fund Third Point reportedly builds a $750m stake and demands a break-up of the company’s assets. In Canada, the central bank ditches its Covid-era bond-buying programme while European markets await today’s ECB rate decision. We also have a slew of Q3 earnings on Super Thursday with C-suite interviews from Skanska, WPP, Volkswagen and more.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Google parent Alphabet posts record Q3 profits on the back of strong advertising sales, but its shares trade lower in extended hours despite the company shrugging off any perceived impact from Apple’s iOS changes. Microsoft also beats expectations on strong cloud performance – its best quarterly sales growth in 3 years. Meanwhile, Chinese industry reports booming profit growth in the face of supply chain bottlenecks, high raw material costs and power rationing. Meanwhile in Washington, Democrats announce plans over a new wealth tax against the country’s richest companies while they wrangle over funding for President Biden’s ‘Build Back Better’ plan. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Swiss lender UBS smashes Q3 forecasts, with pre-tax profit surging by more than 30 per cent. Facebook earnings top expectations and the company increases its share buyback programme, but the numbers are overshadowed by whistleblower Frances Haugen’s testimony to UK lawmakers in which she accused the social media giant of political bias and putting profits over online user safety. Facebook has hit back at the allegations. Tesla breaks through the $1tn market valuation ceiling after car hire Hertz company orders 100k vehicles. The deal prompts shares to soar, adding $36bn to CEO Elon Musk’s personal fortune.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.