Squawk Box Europe Express

Europe’s largest lender, HSBC, posts stellar Q3 results with a 74 per cent surge in profits and announces a £2bn share buyback programme. CFO Ewen Stevenson tells CNBC the bank is well positioned for any interest rate hikes. Meanwhile, Italy’s attempts to save distressed lender BMPS takes a hit after discussions between Unicredit and the state treasury collapse. Evergrande sees shares spike for its EV unit after the Chinese developer’s chairman hints at a move away from property. And Facebook’s woes continue ahead of earnings today. Whistleblower Frances Haugen is due to provide further testimony about online safety at the social media giant in London today.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 closes at a record high – the seventh consecutive day in the green – boosted by Tesla’s performance. However, IBM shares close nearly 10 per cent lower, pushing the Dow to close lower on the day. In China, property giant Evergrande has reportedly paid a key interest payment, bumping shares higher and raising hopes in the sector that the company can avoid a default. European corporates continue their latest earning disclosures. L’Oréal reports higher Q3 performance on strong demand for luxury beauty products. On Wall St., Snap shares are down by more than 20 per cent with the social media site blaming Apple’s recent privacy changes for disrupting its advertising business. And EU leaders meet in Brussels where many criticise Poland over its stance on EU law, but Polish Prime Minister Mateusz Morawiecki says Warsaw will not accept ‘blackmail’ from the bloc.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-in

Strong U.S. earnings push the Dow to a new intra-day high, while Bitcoin hits its own record. Tesla shares sink in extended trade after the EV maker issues a warning about supply chain problems affecting margins. In France, retail giant Carrefour holds its FY cashflow outlook steady despite taking a hit from Covid restrictions. And Swiss-Swedish robotics and automation giant ABB cuts guidance, as earnings miss forecasts.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 firmly in the green with the S&P 500 posting a fifth consecutive day of gains, boosted by positive Q3 earnings. Asian equities have followed suit. Netflix announces that Squid Games has become its biggest TV show ever, pushing the streaming giant’s latest earnings ahead of forecasts. Meanwhile, the first ever Bitcoin futures ETF gains on its first day of trading, pushing the cryptocurrency towards its all-time high. In luxury news, however, Gucci posts a miss as new Covid outbreaks in Asia outbreaks hamper sales, but parent company Kering Group sees like-for-like sales jump by 12 per cent to beat expectations.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 is in the green for the fourth day running ahead of key U.S. earnings. Industrial production Stateside, however, slumps to a more than six-month low. Alibaba’s Hong Kong shares trade higher following the launch of a new server chip for its cloud unit which could directly compete with Amazon and Microsoft. And Apple shares jump as investor’s cheer the tech giant’s newly launched Air Pods and MacBooks powered by its in-house semi-conductors, further breaking away from Intel. We are also live at the UK Global Investment Summit in London where Prime Minister Boris Johnson is due to announce almost £10bn of UK business commitments in an attempt to attract investors from around the world after Brexit and the Covid pandemic.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

China’s economy grows at its weakest pace for a year as energy troubles and supply chain bottlenecks stifle momentum. But consumption remains strong as retail sales beat expectations. The PBOC says that the fallout from the Evergrande debt crisis is manageable but admits that ‘mismanagement’ within some of the country’s biggest companies does pose risks. The BoE’s Andrew Bailey says rising costs may prompt action from the central bank but ECB president Christine Lagarde tells the IMF that she has no reason to believe inflation will not be transitory. And in Germany, Olaf Scholz edges ever closer to the chancellery after the Green Party votes to enter formal coalition talks with the Social Democrats and FDP.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 posts its best day since March as earnings season kicks into gear on a upbeat day for US markets. All three major averages are now on track to end the week in positive territory. Banking stocks are among the winners on Wall St. Bank of America, Morgan Stanley, Citi and Wells Fargo all post earnings beats as trading ramps up and credit reserves are released. As the gas crisis grips Europe and prices soar, Russia's Deputy Prime Minister Alexander Novak tells CNBC that the Nord Stream 2 pipeline is a ready-made solution, waiting to go. And Hugo Boss hikes its full-year outlook, amid strong demand in Europe and the Americas, but the German fashion retailer warns of the impact of renewed Covid restrictions in the Asia Pacific region.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Vladimir Putin tells CNBC his country is not weaponising gas against Europe but instead blames the U.S. for not addressing supply issues in advance. Putin was speaking at Russia’s Energy Week, where we also spoke to a slew of energy bosses, including BP CEO Bernard Looney who said the current gas crisis can only be resolved with further investment in the sector. Meanwhile, two more UK gas companies - Pure Planet and Colorado Energy – collapse amid the autumn price spike. In Washington, the latest FOMC minutes indicate that U.S. tapering may begin as early as mid-November as annual inflation surges to its highest level for 30 years. Inflation sees highs across the Pacific as well, with Chinese factory gate prices rising at their fastest pace since records began, but CPI is held down by weak pork prices. And U.S. banks kick off Q3 earnings with JPMorgan profits boosted by better-than-expected loan losses.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at

China sees accelerating export growth beat expectations for the month of September, but imports fall short, prompting fears of a domestic slowdown. The IMF revises its global growth outlook, citing supply chain issues and the Covid pandemic for the cut. Chief Economist Gita Gopinath urges a more urgent global vaccine rollout. And earnings season gets under way with LVMH Q3 sales up 20 per cent, but an Asian Covid resurgence is hampering growth in its watches and jewellery divisions. Later this Wednesday, JPMorgan reports its latest earnings and we’ll get crucial inflation data from the U.S. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Oil surges with U.S. crude at 7-year highs but Wall Street finished in the red as global equities markets fret over inflation concerns. Under-fire IMF Managing Director Kristalina Georgieva gets the backing of the agency over a data-rigging scandal, but U.S. Treasury Secretary Janet Yellen warns over slipping ethical standards. Chinese property giant Evergrande fails to honour yet another debt deadline. Rival real estate companies Modern Land and Sinic also move to delay their own due dates. And JP Morgan CEO slams Bitcoin as ‘worthless’ but says he will still commit to helping clients access the cryptocurrency which is up 30 per cent in October.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A positive week for Wall Street gives way to disappointing U.S. jobs data in September, despite Congress agreeing to extend the debt ceiling. Meanwhile, world leaders reach a historic agreement for a minimum global tax rate of 15 per cent. The energy sector continues to be in focus with oil prices continuing to rise on surging demand. WTI hits its highest level in 7 years, surpassing $80 a barrel. Gas, however, falls. UK industry leaders still warn of potential shutdowns without government assistance. Business Secretary Kwasi Kwarteng has stopped short of guaranteeing there would be no disruption to consumers this winter. In China, Meituan shares are up after the shopping platform received a smaller-than-expected fine for abusing its market position.   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 hit a three-day green streak after lawmakers in Congress agree to extend the debt ceiling until early December. Chinese services activity bounces back, while stock markets resume activity positively following the Golden Week holiday. In Germany, Armin Laschet says he will stand down as leader of the CDU following the party’s worst electoral showing ever with leadership elections proposed for next week. The OECD inches closer to a 15 per cent global tax agreement after Ireland moved to ditch its 12.5 per cent rate. And in tech news, Samsung is due to post its best quarterly profits in 3 years on elevated semi-conductor prices. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The GOP offer a temporary truce in federal funding talks with Democrats, potentially extending the debt ceiling to December. U.S. equities rebound on the news and Asian stocks rise amid a volatile week of trading so far. Meanwhile, natural gas prices in Europe whip-saw on Wednesday after Russian President Vladimir Putin offers to boost supplies to the continent, as the Kremlin expects prices to ease further once Berlin greenlights the Nord Stream 2 pipeline. Germany’s FDP and the Greens enter coalition talks with the SPD today, moving Olaf Scholz closer to succeeding Angela Merkel as Chancellor. And plans are afoot for Presidents Biden and Xi to hold virtual talks following successful high-level negotiations between the U.S. and China in Zurich.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street rebounds from recent lows, with tech stocks solidly in the green following Tuesday’s rout. Meanwhile, the U.S. heads towards a potential default if Congress cannot pass measures to raise the debt ceiling. U.S. Treasury Secretary Janet Yellen tells CNBC exclusively that delays failing to pay government debt could be “catastrophic”, warning of a potential recession. Gas prices soar once again in Europe and the U.S. causing fresh inflationary jitters. This as UK gilt yields hit two-year highs, with the driver shortage continuing to have knock-on effects in the economy. In Paris, OECD members have moved a step closer to agreeing a global tax deal, tweaking the wording of the draft. And a Facebook whistleblower testifies to the U.S. Senate saying the social media giant prioritises profits over user safety. CEO Mark Zuckerberg denies the claims. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street falls sharply lower, dragged down by U.S. tech stocks and rising bond yields. Financials and energy shares are also lower as investors eye the Fed’s next tapering move. Facebook shares tumble following a six-hour outage of its platforms while a whistleblower accuses the social media giant of “a betrayal of democracy”. U.S. oil prices surge to a seven-year high as Opec+ nations refuse to increase production. Volvo Cars have announced plans they will be seeking a Swedish listing next year with a potential value of $30bn. As Eurogroup finance ministers meet in Luxembourg, France and Spain have partnered to demand reform in the energy sector amid soaring gas prices across the continent. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Evergrande shares are suspended in Hong Kong markets following Chinese media reports that Hopson Development is set to swoop in for a $5.1bn stake of its property unit. In other M&A news, U.S. private equity company CD&R has snapped up UK supermarket chain Morrisons for close to $10bn and is reportedly looking to install former Tesco boss Sir Terry Leahy as chairman. CNBC learns that U.S. trade representative Katherine Tai will announce that Beijing is not complying with the Trump-era Phase 1 deal. And more from the UK’s driver shortage as the military is set to help ease the fuel delivery crisis but Prime Minister Boris Johnson says he will not soften immigration policy to resolve the problem.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street ends its worst month since the start of the pandemic. September saw Covid-related losses, supply chain issues and inflation woes all weighing heavily on U.S. indices. In Washington a shutdown was averted with President Biden signing off on a late-night bill to fund Congress. However, Democrats have bowed to partisan pressure and delayed the vote on the trillion-dollar infrastructure programme. And, BMW raises its full-year guidance in spite of the ongoing chip crisis. The German motor giant’s bottom line has been boosted by higher car prices. Former SPD leader Sigmar Gabriel tells CNBC he welcomes a new pro-European coalition in Germany. And in China, authorities have ordered all state-backed firms to keep energy supplies available “at all costs” as gas prices across the EU and UK soar to record highs.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street recovers but the S&P 500 and the Nasdaq are set to report their worst month for a year. We hear from the Delivering Alpha investor summit where TPG’s Jim Coulter predicts a volatile October. All eyes are on the U.S. Senate where Republicans are expected to continue their opposition to President Biden’s spending plans as well as a bill to suspend the debt ceiling after the measure was voted through the U.S. House of Representatives. The stand-off could set the scene for a potential government shutdown following Friday’s deadline. Chinese factory activity has shrunk for the first time since February 2020, with manufacturers feeling the pinch from high commodity prices. Chinese property developer Evergrande misses another bond coupon payment deadline, causing shares to drive lower once again. And gas prices contract by up to 7 per cent – the sharpest decline since January – but 3 more UK energy providers succumb to higher wholesale prices.  See Privacy Policy at https://art19.com/privac

The Nasdaq suffers its worst session since March with tech titans such as Alphabet, Facebook and Microsoft all tumbling. There is talk of a looming broader correction in the sector. Asian markets see more selling as U.S. yields remain at 3-month highs with pandemic support set to be wound down. The Federal Reserve Chairman Jerome Powell warns Congress that inflationary pressures could be around for longer than first thought due to worsening supply chain pressures. U.S. Treasury Secretary Janet Yellen warns against a debt ceiling crisis after the Senate blocks a bill to extend the limit, saying the U.S. runs the risk of a “self-inflicted wound” on its economy. And troubled property developer Evergrande offloads a $1.5bn minority stake in a Chinese bank to a state-owned firm.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The UK fuel shortage crisis continues with supplies to emergency and essential services believed to be under threat. Officials, however, claim that panic-buying is now receding. Meanwhile, Chinese factory profits decline for the sixth consecutive month as rising commodity prices and supply chain issues bite. Also in China, Evergrande shares rise after the PBOC promised to protect housing market consumers. The property giant faces another interest payment tomorrow. In the U.S., Dallas Fed President Robert Kaplan and Boston Fed President Eric Rosengren resign as fallout from the central bank trading scandal increases. And coalition talks are under way in Germany. The FDP and the Greens are set to hold discussions, while the CDU’s Armin Laschet still hopes to become Chancellor despite coming second to the SPD’s Olaf Scholz.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.