Squawk Box Europe Express

President Biden issues a major disaster declaration for the state of Louisiana as Hurricane Ida makes landfall as a category 3 storm, with torrential rains and rising waters that have knocked out power and shut down the Gulf's oil platforms. Germany's SPD extends its lead over Chancellor Merkel's Conservatives, while a snap poll shows Olaf Scholz winning the 3-way debate, as Saxony's President tells CNBC the race is wide open. A US drone strike kills two high-profile ISIS members accused of plotting the deadly attacks in Kabul, as western forces continue evacuations ahead of tomorrow's withdrawal deadline. And Fed Chair Jerome Powell soothes taper concerns, striking a dovish note in his Jackson Hole address and leading US markets back 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.

More than 60 civilians and 13 U.S. troops are killed by ISIS-affiliated suicide bombers outside Kabul International airport, where thousands are gathering in the hope of being evacuated ahead of the U.S. military withdrawal and Taliban rule. U.S. indices break their winning streak ahead of the virtual Jackson Hole summit this weekend. Key Fed speakers have told CNBC that tapering will begin within the next two months. This, as U.S. jobless claims rise slightly and GDP data misses guidance. Meanwhile in China, industrial profits are also down, growing at their slowest pace this year on increasing Delta variant concerns. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Both the S&P 500 and Nasdaq hit new record highs with markets now eyeing the upcoming virtual Jackson Hole summit of central bankers for clues of the Fed’s tapering path. The Bank of Korea hikes interest rates for the first time in three years. It’s the first developed economy to make the move since the start of the pandemic. In the U.S., the SEC is reportedly set to investigate DWS after a former Deutsche Bank asset management arm had allegedly exaggerated the unit’s ESG involvement. And in aviation news, Lufthansa and Delta Airlines push for fully vaccinated staff, as U.S. federal regulators look to greenlight more jabs. 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 has confirmed he will be adhering to his 31st August deadline to withdraw all U.S. military personnel from Afghanistan despite G7 leaders pushing for an extension, amid continued evacuation chaos in Kabul. With a month to go before Germany’s federal election, the SPD has pulled ahead of Angela Merkel’s CDU by a single point - the first time in 15 years. In market news, the S&P 500 posts its 50th record session this year ahead of this week’s Jackson Hole meeting of central bankers. And Beijing has accused Washington of attempting to drive a wedge between China and its Asian neighbours as U.S. Vice-President Kamala Harris cranks up the diplomatic pressure during the second leg of her South-East Asian tour in Vietnam.   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 have had a strong start to the week with the Nasdaq reaching a new record high. Asian indices follow suit on Tuesday with Chinese tech firms rebounding from recent lows, giving the Hang Seng a boost. In vaccine news, the U.S. FDA fully approves the Pfizer/BioNtech vaccine, prompting President Biden to call on companies to encourage employees take up the jab. Meanwhile, U.S. Vice-President Kamala Harris continues her tour of South-east Asia where she reaffirms American support and cooperation for the region, in the face of Chinese ‘coercion’ in the South China Sea. We’re also in Dresden where German electrical giant Bosch has reopened a new semi-conductor factory. CEO Harald Kroeger tells CNBC that current supply chains are not sustainable. And, as the situation in Kabul continues to deteriorate, President Biden will consider extending the U.S. troop withdrawal from Afghanistan after attending a G7 emergency meeting on the issue. The Taliban has warned the 31st August deadline is a “red

Asian markets bounce back after multi-month lows while crude also recovers, having seen its worst week of trading for nine months. Meanwhile, U.S. Vice-President Kamala Harris embarks on a five-day tour of South-East Asia to reassure allies against growing Chinese power and influence in the region. In Germany, with just five weeks before the general election, the CDU and SPD are level in the polls on 22 per cent. Support for Angela Merkel’s party has dwindled recently – its largest drop in public opinion since 2017. And as the chaos in Kabul continues, we hear from NATO Secretary-General Jens Stoltenberg who says the alliance is working hard to evacuate citizens and personnel from Afghanistan, but admits it was blindsided by the speed of the Taliban takeover last week.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 manage to reclaim losses to close broadly flat but in Asia the sell-off continues. Hong Kong’s Hang Seng sinks to a nine-month low while the Nikkei hits its worst levels since January. The world’s largest semi-conductor equipment manufacturer, Applied Materials, reports record Q2 results as Intel’s and Cisco’s CEOs tell CNBC that supply chain shortages will remain for the foreseeable future. Chinese authorities pass one of the world’s strictest data privacy laws in a bid to tackle data theft and online fraud. In retail news, Morrisons supermarket accepts a renewed $7bn takeover bid from private equity firm CD&R, rejecting the previous offer from Softbank-owned Fortress.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Fed talk of tapering nudges Wall Street down with FOMC minutes showing plans to pull back monthly bond purchases by year-end. The U.S. presses ahead with booster vaccines despite the WHO advising that poorer nations require the shots first. There are further quarterly earnings beats from U.S. retail and chip makers but Nvidia says cryptochip sales are soft and supply chain delays continue to cause concern. And in tech news, Robinhood revenues double in Q2, however the trading app says that activity is showing signs of slowing. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow breaks a five-day winning streak after U.S. retail sales came in lower than expected with a dip in July autos sales. Walmart and Home Depot both experience falling same-store sales but still beat expectations for the quarter. The RBNZ holds rates steady after expectations it would make the region’s first pandemic-era hike. The chaotic evacuations from Afghanistan continue. Many countries have pledged to take in refugees. Brussels says it will not officially recognise the Taliban authorities but has said it will engage in talks to prevent a humanitarian crisis.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. stocks hit new record highs, with the S&P 500 up 100 per cent from its pandemic bottom in what has been the fastest bull rally since WW2. CNBC hears from Boston Fed president Eric Rosengren who has reiterated his call for the FOMC to begin winding down its asset purchase programme from September. U.S. President Joe Biden stands behind his decision to withdraw troops from Afghanistan as the country falls to advancing Taliban forces. And in China, market regulators continue their tech crackdown, issuing new online competition rules. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A raft of key Chinese data misses expectations with growth slowing across retail sales, industrial output and fixed asset investment. Asian stocks stumble and oil comes under pressure. The Taliban takes control of Afghanistan - with President Ghani fleeing the country. But the US stands by its decision to withdraw troops, amid a rushed evacuation of embassy staff and American citizens.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 reach new record highs on surging inflation, but the core number comes in lower than expected. CNBC hears from Dallas Fed president Robert Kaplan who suggests the tapering schedule could be accelerated to begin in October. It’s a big earnings day for European corporates. We hear from NN Group, Bilfinger and Zurich Insurance which sees a 60 per cent jump in H1 earnings and maintains its 2022 guidance. Meanwhile, Chinese autonomous vehicle company Pony.AI has shelved plans to list in the U.S. following Beijing’s continuing regulatory crackdown, yet HKEX CEO Nicolas Aguzin insists that concerns are overblown.  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 hits its 47th record session this year as weekly jobless claims fall for the third straight week, but factory prices are up. Disney shares surge in after-hours trading with a quarterly beat across the board, driven mainly by doubling subscriptions for Disney +. Meanwhile, China closes down Ningbo - the world’s third-largest port - over Covid concerns, further straining global supply chains. In corporate news, sporting goods giant Adidas finally sells Reebok to Authentic Brands Group for €2bn – that’s €1bn less than what it had originally paid for the subsidiary 15 years ago.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. Senate passes a $1tn infrastructure bill with Democrats now focusing on a $3.5tn stimulus package. The Dow and the S&P 500 hit new record highs on the news, but the Nasdaq dips as treasury yields weigh on tech stocks ahead of key inflation data. In corporate earnings, Q1 profit at Lenovo more than doubles. The Hong Kong-incorporated laptop giant says net income margins will widen. Also in tech news, U.S. cyber security firm NortonLifeLock is set to take over Czech rival Avast in a $8.6bn cash and stock deal. Hackers hit blockchain provider Poly Networks with a $500m heist, impacting tens of thousands of accounts.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 Dow falter due to Delta variant spike concerns and the effect it may have on global demand. Energy stocks are particularly lower Stateside. But, some positive macro data could lift sentiment, as U.S. job vacancies hit a record high of 10 million at the end of June while several Fed governors push for a swifter reduction in stimulus measures. Meanwhile, Tencent-backed South Korean video game maker Krafton tumbles on its first day of listing in Seoul on worries of Beijing’s continuing tech regulatory crackdown. In pharma news, Germany’s BioNtech has hiked guidance with Q2 profits hitting almost €3bn on soaring vaccine demand.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Rising commodity prices weigh on China’s post-pandemic economic recovery with factory gate prices beating expectations, going up 9 per cent. The U.S. Senate inches towards passing the largest infrastructure spending bill in more than a decade. A couple of big earnings reports are in focus. On Wall St., Warren Buffett buys back a record $25m of Berkshire Hathaway stock after posting a 21 per cent in Q2 income. In the energy sector, Saudi Aramco is set to increase supply capacity after second quarter earnings surged by 288 per cent. However, crude is down on concerns of a drop in demand.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 hits a new record high on positive U.S. jobs numbers and redundancies fall to a two-decade low. Bank of England Governor Andrew Bailey tells CNBC that policy will be modestly tightened over the next few years as the balance sheet is reinforced to weather any future crises. In the U.S., President Biden signs an executive order calling for at least 50 per cent of all American cars and trucks to be electric by 2030. In South Korea, mobile-only lender Kakaobank has listed to become the country’s biggest retail bank. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Some major earnings misses and a disappointing private sector jobs report in the U.S. weigh on the S&P 500 and Dow, and Fed vice-chairman Richard Clarida says price rises may delay a hike in rates until 2023. Italian bank Intesa San Paolo plans a €3.3bn dividend as it reports shrinking loan losses amid the pandemic recovery. Uber records an earnings beat but losses widen as the ride-hailer spends big on driver incentives. And, from the platform to the object - Robinhood becomes a meme stock in its own right, closing 50 per cent higher in yesterday’s session.  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 hits a new record high, shrugging off concerns about the spread of the Delta variant in the U.S. as the White House advances its vaccination drive. The head of the U.S. SEC has called on Congress to clamp down on the ‘Wild West’ of cryptocurrency markets. In autos news, Toyota sees net profit soar by 500 per cent and it reaffirms FY guidance. Service sector growth in China picked up last month but new outbreaks in the south of the country could undermine economic recovery. And oil prices remain steady despite reports of a potential tanker hijack by Iranian forces in the Gulf of Oman.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Standard Chartered announces it will be resuming its interim dividend and buy back $250m of shares after H1 profits soared by 60 per cent. French lender Société Générale reports €1.4bn net income for the second quarter. Delta variant spikes in the U.S. weigh on markets Stateside. We hear from the Fed’s Christopher Waller who says the economy is ready for tapering. And in China, online gaming stocks fall after state media attacks the industry as ‘spiritual opium’. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.