Squawk Box Europe Express

It’s another big day of earnings on both sides of the Atlantic. E-retail titan Amazon misses quarterly revenue forecasts for the first time in three years, warning that the slowdown is set to continue. Cosmetics giant L’Oréal is buoyed by make-up and perfume sales to reach a Q2 beat as economies re-open. Swiss building materials firm Holcim has posted record results for H1 and margins are up across all of its units. We also hear from Schneider Electric and SNAM. Unicredit is holding exclusive talks to snap up Banca Monte dei Paschi in a deal brokered by the Italian government. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

It’s Super Thursday for many European corporates, including Volkswagen, Shell and Diageo. Credit Suisse releases a scathing report following an internal investigation into the bank’s failure to manage risk in the wake of the Archegos scandal. The Swiss lender’s investment bank revenues plunge by 40 per cent. Meanwhile, Airbus is buoyant, raising its guidance for deliveries and operating income. In the U.S., Facebook shares fall in after-hours trading despite beating Q2 earnings expectations. The social media giant is braced for a significant growth slowdown. And in China, tech shares lift after a CNBC source reveals that Chinese market authorities have met with top investment banks to calm concerns following Beijing’s recent regulatory crackdown. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Apple smashes Q2 expectations with every product line hitting double-digit growth and Chinese sales soaring by 60 per cent. The stock, however, is down as CEO Tim Cook warns of continued semi-conductor shortages. Deutsche Bank swings back into profit despite reporting trading headwinds in the second quarter. We also hear from the CFO of Santander after the bank posts a €3.6 bn H1 profit and says it will outfperform its 2021 targets. Plus, Gucci products drive French luxury firm Kering, which has almost doubled its revenue. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Tesla posts a record second quarter profit with net income of more than $1bn. However, CEO Elon Musk admits that the global semi-conductor shortage is causing serious problems for the company. Luxury giant LVMH sees sales soar by 80 per cent as economies reopen. Louis Vuitton and Dior are the standout brands in the quarter. French tyre maker is upping its full-year guidance after a strong H1 sales but supply chains concerns still remain. And in China, food delivery platforms are targeted by Beijing in its ongoing regulatory crackdown on tech firms.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Major Chinese markets slump on the back of Beijing’s continuing regulatory crackdown, with billions wiped from tech, education and property stocks. After a volatile week, the Dow breaks through the 35k level. Investors await mega-cap tech earnings as well as the Fed rate decision later this week. In Germany, the continent’s largest real estate deal faces new uncertainty as Vonovia says it may fail to reach the 50 per cent acceptance threshold for its merger with Deutsche Wohnen. And there are widespread anti-vaccination passport demonstrations throughout France and Italy.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Twitter shares soar as it posts its fastest quarterly revenue since 2014, citing a successful advertising revamp. Intel beats on Q2 forecasts but remains cautious on the year ahead, due to supply chain and price constraints. U.S. airlines are buoyant with American Airlines and Southwest posting profits as travel demand soars Stateside. And Tokyo is set to open the 2020 Olympic Games amid a slew of political scandals and Covid infections. NBC hears exclusively from Japanese PM Yoshihide Suga, who says that rallying support for the Games remains difficult.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 finish in the green for a second day running with earnings in full swing. Up to 88 per cent of S&P 500 companies having already beat Q2 expectations. Bitcoin is buoyed by comments from Tesla CEO Elon Musk who has suggested that the electric car maker is likely to reinstate the cryptocurrency for payments. The U.S. and Germany have agreed on the completion of the Nord Stream 2 pipeline but the move has been slammed by Ukraine which fears Russia could weaponise the deal. And in corporate news, Swiss-Swedish robotics manufacturer ABB has seen orders rise by 32 per cent in Q2 but warns of supply chain bottlenecks and rising raw material costs.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 rebound from Monday’s plunge with the Dow posting its biggest session jump in a month. Small caps also surge while treasury yields calm. Meanwhile, streaming giant Netflix falls short on Q2 expectations as disappointing post-lockdown customer growth weighed on its outlook. In aviation news, a domestic U.S. resurgence buoys United Airlines which expects to log profits for the rest of the year, despite a sixth-straight quarter of losses. And we have a slew of European earnings including SAP, AkzoNobel and Software AG.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow posts its worst session since October, while the 10-year Treasury yield hits a five-month low amid continued Covid concerns. UBS beats Q2 forecasts with a $2bn net profit on the back of favourable market conditions and client activity. The U.S. State Department raises a travel advisory for the UK over increasing Covid cases but Prime Minister Boris Johnson says the time for the country to reopen was right. Billionaire investor Bill Ackman tells CNBC exclusively that the SEC drove a ‘dagger in the heart’ of Pershing’s attempted SPAC of Vivendi’s Universal Music Group unit.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The UK drops almost all Covid-related restrictions despite rising infection rates. In Asia, renewed virus fears force equities into the red as global infections near 200 million. Up to 180 people have died and hundreds more remain missing across western Germany and Belgium following last week’s deadly flash floods. In energy news, Opec+ nations end their stalemate over supply, sending crude prices down.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. Treasury Secretary Janet Yellen tells CNBC that price pressures are likely to remain in the short term, sending Treasury yields lower and the S&P 500 into the red. Morgan Stanley beats Q2 earnings forecasts on strong results in its investment bank arm, capping off a good week for U.S. banks. There are more than 50 people dead and at least a thousand missing as devastating flash floods hit Germany’s North Rhine-Westphalia state and the Benelux region. This, as German Chancellor Angela Merkel meets with U.S. President Joe Biden to agree a united front against alleged Russian aggression. The pair, however, admitted to differences on the construction of the Nord Stream 2 pipeline in the Baltic Sea.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese economic growth cools in Q2 at 7.9 per cent, however, retail sales and manufacturing still outperform forecasts for the quarter. U.S. Federal Reserve Chairman Jerome Powell insists to Congress that inflation remains transitory but that the central bank is ready to act should this change significantly. U.S. banks continue to beat earnings expectations with Bank of America, Citi and Wells Fargo in the spotlight but low rate concerns and inflation weigh on shares. In autos, Daimler has offset soaring semi-conductor costs by hiking prices. It has beaten estimates with a Q2 profit margin just short of €5.5bn. And Brussels unveils sweeping new plans to cut back emissions by more than 50 per cent by the end of the 2020s. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

US markets are jittery after inflation rises 5.4 percent – its fastest pace since 2008. San Francisco Federal Reserve President Mary Day tells CNBC that history suggests the current price hikes will be temporary. JPMorgan sees quarterly profit double, prompting the lender to release provisions, while Goldman Sachs enjoys its second-highest quarterly revenue ever. In Germany, VW has launched plans to transition to 50 percent EV sales by 2030. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese exports in June surge on increased global demand and import data is also higher than expected. EU nations agree to suspend plans for a digital services tax and the Eurogroup is joined by U.S. Treasury Secretary Janet Yellen as part of her continuing global corporate tax campaign. In commodities news, lumber gains are pared back while oil is up as U.S. inventories fall, outweighing fears the Covid Delta variant may upset the global recovery. The UK moves to reopen on Monday 19th July while restrictions in France increase once more.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

G-20 nations endorse a landmark global corporate tax deal and pledge to support the Covid recovery. Italian central bank governor Ignazio Visco tells CNBC that the ECB’s inflation policy is justified. Asian equities are up after another record-breaking session on Wall Street and new policy support from China. Beijing is also increasing its crackdown on tech companies launching its pre-IPO security checks. Chinese authorities are also blocking Tencent’s $5.3bn merger with video game streaming sites Huya and DouYu citing anti-trust reasons.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street closes firmly to the downside. The 10-year Treasury note slumps to its lowest point for almost 5 months with continued Covid recovery fears weighing heavily. Investors look to safe havens like the Swiss franc and the Japanese yen while gold is set to post its third straight week in the green. The ECB sets out its first strategic policy review in nearly two decades, announcing a 2 per cent inflation target. Airbus enjoys a 52 per cent increase in H1 deliveries and is set to hit its 2021 targets. And in Tokyo, the Olympic flame arrives at an empty stadium as the city announces a state of emergency due to a Covid flare-up and will now ban all spectators from the Games. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Taper talks begin in earnest, but the latest Fed minutes reveal policy-makers the economic recovery is not strong enough yet to take an action. G20 finance ministers meet in Venice ahead of this weekend’s summit. Talks centre on endorsement of the global corporate tax deal. The ECB is set to announce the result of its first strategic review since 2003 where it is expected to redefine its inflation target. And in tech news, Google faces several anti-trust law suits as well as legal action from former U.S. President Trump for banning him from the search engine, as well as from Facebook and Twitter. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese ride-hailing app Didi Chuxing has sparked a sell-off on its first trading day in New York after Beijing authorities ordered a cyber security review into the company. We hear from French Economy Minister Bruno Le Maire who voices confidence that the new global corporate tax deal will be endorsed and welcomed across both Europe and the U.S. The Pentagon annuls a deal with Microsoft secured during the Trump administration. The Jedi Cloud contract, worth $10bn, will now spark a bidding war with Amazon. In energy news, the Opec+ output policy stalemate forces oil prices to slide from their six-year high. Saudi Arabia’s Energy Minister Abdulaziz Bin Salman tells CNBC that the cartel remains united. And Chinese Tesla rival, Xpeng, has launched its Hong Kong IPO, raising $1.8bn. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Oil hits a three-year high as OPEC+ members fail to agree on output hikes. The U.S. has called for a “compromised solution”. Tech fears affect Asian markets after reports suggest that Beijing had asked ride-hailing app Did Chuxing to delay its NYSE IPO. In the UK, Prime Minister Boris Johnson announces plans his government will end nearly all Covid restrictions by July 19th but does warn that virus cases and hospitalisations continue to grow. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The UAE rebels against an Opec+ supply agreement. We hear from the country’s energy minister Suhail Al Mazrouei who says the current deal on the table “is not good for us.”. Markets in Asia are mixed despite Friday’s strong U.S. jobs data, while PMI numbers reveal a slowdown in Chinese services activity. Beijing suspends ride-hailing app Didi Chuxing over privacy concerns just 4 days after the company lists on the NYSE. In retail news, UK supermarket chain Morrisons agrees to a £6.3bn takeover by Fortress Investment Group. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.