Squawk Box Europe Express

The Dow hits an all-time high – jumping 300 points - as U.S. jobless claims beat expectations. Markets now turn to the Non-farm Payrolls due today. Central banks are in focus as the Federal Reserve believes that asset prices in stock markets are over-valued and pose a threat to the financial system. Meanwhile, the Bank of England hikes the UK GDP outlook for 2021 by 7.25 per cent. BoE Governor Andrew Bailey tells CNBC that inflation ahead could be ‘bumpy,’ but so far there was no cause for alarm in the medium term. Still in Britain, we are live in Edinburgh while awaiting crucial parliamentary, regional and local elections from across the country. China’s recovery continues with imports and exports seeing a strong rise in April. And pharmaceutical stocks are mixed after German Chancellor Angela Merkel denies waiving IP rights for Covid vaccines while U.S. President continues pushing in the opposite direction.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/pri

Strong U.S. earnings help push the Dow to a new record but tech stocks suffer as Federal Reserve Vice-chairman Richard Clarida says talk of tapering is still some time off. Pharma shares also tumble after the White House backs a patent waiver for Covid vaccines. Meanwhile, Sino-Australian relations deteriorate further after China suspends all activities associated with the Strategic Economic Dialogue between the countries. Beijing has accused Canberra of having a ‘Cold War mindset’. And in banking news, French lender Société Générale posts a first-quarter profit of €814m on the back of solid global bank performances.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 sends jitters through the markets, saying interest rates may have to rise eventually, but later admits that any hikes are neither predicted nor recommended. Tech stocks plunge following Yellen’s comments. The Nasdaq reacts by posting its worst day since March while Apple shares fall 3 per cent. In corporate news, U.S. ride-hailing app Lyft beats Q1 expectations with revenues up 7 per cent on the quarter. Canadian business jet giant Bombardier moves its positions out of French rail company Alstom, selling its 3.1 per cent stake for $663m. We also have first-quarter earnings from several European firms including Deutsche Post DHL and Virgin Money.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Tri-State area moves to join Florida and Texas in reopening most businesses to full capacity following months of lockdown. The Dow and S&P surge on the news with retail stocks gaining strongly. President Biden aims to garner support for his recovery plan after GOP lawmakers call the plan an “economy and jobs killer”. Meanwhile, Biden’s Secretary of State Antony Blinken meets UK Foreign Minister Dominic Raab in London for the first in-person G7 summit in two years. The pair discussed how to counter geo-political threats posed by Russia and China. In media news, Vivendi is set to sell down its stake in Italian broadcaster Mediaset, in a bid to resolve a five-year legal wrangle. We also have a slew of earnings from around Europe, including Adecco, Infineon and S4 Capital.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. futures are up ahead of the first May trading day. Investors ready themselves for a new week of earnings and Treasury Secretary Janet Yellen says price pressures are not a concern following President Biden’s proposed $4.1tn stimulus package. Legendary investor Warren Buffett, however, warns that inflation is a risk as the ‘red hot’ U.S. economy recovery gathers pace. Meanwhile, the Covid pandemic rages on in India, which records more than 3,400 deaths - its highest daily death toll so far. And in M&A news, private equity titan Apollo is closing in on Verizon’s media assets in a deal believed to be worth up to $5bn.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Amazon sees another $100bn quarter as it continues to prosper from lockdowns around the world. Sales surged 44 per cent and the online retail giant expects strong revenue ahead even as virus restrictions ease. But it’s not all good news for the tech giants. Twitter misses Q1 expectations with falling growth in active users, despite revenues rising. Shares nosedive by double digits in extended trading. The U.S. economy posted 6.4 per cent growth in the first quarter with the vaccine rollout and federal spending helping the country back on track to pre-pandemic levels. Meanwhile, China’s manufacturing rebound is hindered by supply chain disruptions. The nation’s private sector, however, sees activity rise by its fast pace since the beginning of the year. Also in China, tech stocks tumble after Beijing regulators laser in on so-called ‘risky’ lending and payments in a bid to rein in its powerful domestic tech sector. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https

President Biden touts progress on the U.S. vaccine rollout and a resurgent economy during his first joint address to Congress. He unveiled a new $1.8tn spending plan and urged lawmakers to raise corporate tax and levy the ultra-wealthy to foot the bill. Treasuries and stocks falter after Federal Reserve chairman Jerome Powell holds rates steady. Powell said the recovery remained uneven in places and ruled out tapering for the foreseeable future. In Big Tech earnings, Apple sales surge by more than 50 per cent after seeing double-digit growth in all its product categories. It also announced $90bn in share buybacks. Facebook also enjoys a 50 per cent revenue increase on higher priced advertising. In Europe, Airbus has warned that the aviation sector’s recovery is still incomplete. This, despite the French plane maker posting a 147 per cent hike in Q1 adjusted operating profit and maintaining 2021 guidance. And in banking news, Standard Chartered’s wealth management unit reports its best-ever quarter but th

It’s another busy day of earnings on both sides of the Atlantic. Google’s parent company Alphabet posts its biggest earnings beat since it went public. The media giant has launched a $50bn share buyback. Microsoft shares are down despite its strongest Q1 revenue for three years on the back of booming cloud services and PC sales during global lockdowns. In Europe, Santander records a net profit of €1.6bn and says it is on track to hit its goals for the year and aims to drive down costs further. Earnings are also coming in from Deutsche Bank, Covestro, Carlsberg and Electrolux.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

HSBC leads a slew of earnings on both sides of the pond with the UK lender posting its best quarter since the start of the pandemic as profits surge 79 per cent. CFO Ewen Stevenson tells CNBC shareholders can expect dividend payouts once again. UBS also has a strong Q1 but results were dented by a CHF434m hit from exposure to the collapse of Archegos. Stateside, Tesla posts a record first quarter. Betting on Bitcoin has helped to add $100m to the electric car maker’s bottom line but CEO Elon Musk admits to ‘insane’ manufacturing difficulties due to the global chip shortage. And in shipping news, Maersk lifts its full-year outlook on strong demand and rising freight rates.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asian equities hit a six-week high to kick off a week when more than a third of companies listed on the S&P 500 are set to report Q1 earnings and markets await the Fed’s rate decision. Meanwhile, India continues to suffer from record Covid case and death levels over the weekend. Hospitals are overwhelmed and oxygen in short supply as the UK announces it is shipping urgent medical equipment to Delhi. In Italy, PM Mario Draghi eases lockdown restrictions while striking a recovery plan with Brussels reportedly worth €200bn. EU Commission President Ursula Von Der Leyen pledges to resume flights between the bloc and U.S. for fully vaccinated tourists this summer.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. equities tumble with the Dow leading losses on the news that President Biden is set to hike capital gains tax to more than 40 per cent. Biden also held a virtual world leaders’ climate summit where he pledged the U.S. would slash its carbon emissions in half within a decade, reasserting the nation’s commitment to tackling climate change. Meanwhile, the pandemic rages on in India, which saw a record 300,000 new Covid infections for a second straight day. The country’s second wave is reportedly pushing the healthcare system to the brink of collapse, as it is already suffering regional oxygen shortages. In Europe, CNBC learns the EU is eyeing imminent legal proceedings against AstraZeneca’s shortfalls in vaccine deliveries to the bloc. And in earnings news, LafargeHolcim reports a record Q1 on rising sales. The world’s largest cement maker says it expects to reach its 2022 targets a year in advance.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-

Credit Suisse slumps to a CHF252m Q1 loss with CEO Thomas Gottstein calling the Archegos and Greensill scandal-linked losses “unacceptable”. The Dow regains more than 300 points and the Nasdaq bounces back by 1 per cent on strong pandemic recovery stocks. Airbus reorganises aero-parts production lines in France and Germany in a bid to cut costs. President Biden’s environmental summit is set to begin on Earth Day with Treasury Secretary Janet Yellen pledging to tackle the “existential threat” of climate change. In Frankfurt, ECB President Christine Lagarde is expected to keep rates on hold with pressure growing for the central bank to taper bond-buying.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asian markets mirror losses Stateside. The Dow posts Wall Street’s biggest declines as virus-related pessimism overshadows strong corporate earnings. Netflix, however, is not among the positive performers. Its shares plunge in after-hours trading following faltering subscription numbers as lockdowns ease. Kering, however, tops Q1 sales expectations, spearheading the luxury sector’s revival. The French giant’s Asian performance offsets continuing weakness in Europe. And the breakaway European Super League collapses dramatically after just two days. All six English Premier League clubs withdraw from the project following a massive backlash from fans, clubs and footballing governing bodies.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Armin Laschet wins the CDU’s nomination for German Chancellor, moving one step closer to succeeding Angela Merkel. U.S. equities are lower as tech stocks stumble following a deadly driverless Tesla car crash in Houston. Meanwhile, Chinese President Xi Jinping addresses the Boao Forum, calling for global cooperation and equitable governance to avoid a new ‘Cold War’. In autos news, BMW releases a surprise set of Q1 results that show profits soaring by 370 per cent on strong demand in China and increasing prices. And the UK government says it will take all possible measures to halt the establishment of the breakaway European Super League. European football’s governing body, Uefa, has called the move “a spit in the face” of fans of the game.   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 Dow close the past week at new record highs following a strong start to the U.S. corporate earnings season, ahead of another week of key numbers. Meanwhile, pandemic deaths have reached the grim milestone of 3 million deaths worldwide. India alone has recorded up to 250,000 new infections in a single day. Research is ongoing to assess future risks from the virus, with Oxford University undertaking human Covid re-infection trials to assess the efficacy and longevity of vaccines and immune responses to the virus. In China, Shanghai plays host to two days of high-level climate talks between Washington and Beijing where environmental envoy John Kerry and his Chinese counterpart, Xie Zhenhua pledged cooperation on climate change ahead of President Biden’s virtual leaders’ summit this week. And, the PBOC says it does not intend to replace the dollar as the world’s reserve currency with its digital yuan.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19

Chinese Q1 GDP growth soars by a record-breaking 18.3 per cent on the year but falls short of analysts’ expectations. Strong U.S. earnings have pushed the Dow over 34,000 for the first time. Retail sales are also up by almost 10 per cent and first-time jobless figures hit a one-year low. Daimler posts a surprise jump in Q1 earnings as it unveils its flagship electric car, the EQS. However, CEO Ola Källenius tells CNBC that the global chip shortage is weighing on sales. French cosmetics giant L'Oréal shrugs off lockdown effects through solid Chinese demand and strong online sales in Europe.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Cryptocurrency trading platform Coinbase closes a dramatic inaugural day on the Nasdaq below its debut price after rallying to more than $400 a share. U.S. earnings season kicks off with big beats for Wall Street banks. Goldman Sachs posts a record Q1 net profit and revenue number. Unicredit is set to formerly unveil Andrea Orcel as its new CEO today but his €7.5m pay packet remains controversial for some of the Italian lender’s investors. ABB raises its 2021 revenue outlook with sales rising in the first quarter.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Rare blood clot incidents force Johnson & Johnson to pause the use of their vaccine in the U.S. where health officials have scrambled to reassure the public. The safety concerns also have implications for the rollout of the dose throughout the EU where it has been temporarily stopped just 24 hours since deliveries began. U.S. equities mostly shrug off the news, with the S&P 500 hitting record highs, buoyed in part by tech stocks. As earnings season begins, German software giant SAP reports preliminary Q1 profit jumping by a third, prompting the firm to raise its revenue guidance. Credit Suisse is reportedly unwinding its Archegos-linked positions, putting large blocks of Discovery shares on the market. In luxury news, LVMH has beaten Q1 expectations on rebounding Chinese and U.S. demand.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

China March exports rise by more than a third while imports come in at their fastest pace in four years. In Germany, the race to replace Angela Merkel as Chancellor heats up with the CDU’s Armin Laschet vying against CSU leader Markus Söder, who is pulling ahead in the polls. The U.S. is readying itself for key inflation data and first-quarter corporate earnings are also due, which weigh on Wall Street. President Biden holds a semi-conductor summit with CEOs and vows to provide federal support to companies hit by the global chip shortage. Intel boss Pat Gelsinger tells CNBC he is aiming to produce chips for the automotive industry in the U.S. by the end of the year.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The race for the German chancellery heats up after the CSU chairman and Bavarian minister-president Markus Söder throws his hat in the ring against the CDU’s Armin Laschet. Party leaders are set to decide on their preferred candidates today. Federal Reserve chairman Jerome Powell has said that the U.S. economy is at an ‘inflection point’ despite pockets of recovery risk remaining. The Dow and the S&P 500 both hit new record highs on Friday ahead of the start of earnings season this week. In China, Alibaba shares surge despite the online retail group being slapped with a $2.75bn fine by Beijing regulators for violating the country’s anti-monopoly laws. And in tech news, Microsoft is to snap up speech-recognition technology firm Nuance for $16bn.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.