Squawk Box Europe Express

Federal Reserve Chairman Jerome Powell warns a CNBC IMF Spring Meeting panel that the pandemic will leave permanent scarring on the global jobs market but that an inflation hike will only be temporary. Vaccine access and recovery trajectories are also dominating the discussion. IMF managing director Kristalina Georgieva says that poorer countries must not be left behind. Australia acknowledges the rare blood clot cases recently associated with the AstraZeneca dose but stops short of an outright ban while revising its rollout and procurement strategies. In China, factory gate prices see their highest jump in two years. In tech news, Tencent-backed fintech company Linklogis leaps on its Hong Kong market debut, promising international expansion.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The UK has changed its guidance for the AstraZeneca Covid vaccine following reported rare blood clots. Younger recipients will now be offered an alternative dose but the British medical authorities say the benefits still outweigh any risks. The European Medical Agency has acknowledged a possible link between the vaccine and the side effects but has not age-restricted the jab on the Continent. In the U.S., the S&P 500 hits another record close buoyed by the Federal Reserve’s March minutes optimism about the country’s outlook. President Biden has indicated that he is willing to debate and compromise over his corporate tax plan with some reports suggesting that 25 per cent could be the best middle-ground figure.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

CNBC launches Germany: Engine of Europe with the country’s finance minister Olaf Scholz telling the channel exclusively that Europe requires a streamlined and united front in tackling the COVID pandemic. The IMF raises its post-pandemic global guidance, saying that China’s response has driven growth but warns that asymmetrical vaccine rollouts will provide ‘daunting challenges’ ahead. According to CNBC sources, Morgan Stanley reportedly dumped $5bn in Archegos bets on the eve before the hedge fund’s fire sale. And in IPO news, a report suggests Goldman Sachs bought £74m of Deliveroo shares in an effort to support the stock price after its disappointing IPO.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Credit Suisse takes drastic action, axing 2 top executives, cutting its dividend, halting its share buy-back plan and slashing bonuses as the bank warns the Archegos fallout will cost $4.7bn. On Wall Street, a strong March jobs number and a service sector activity spike buoy the Dow and the S&P 500. U.S. Treasury Secretary Janet Yellen announces the Biden’s administration return to the world stage, calling for a minimum global corporate tax rate. In China the services sector continues to recover with the Caixin survey clocking activity at its highest level since December on increased hiring and consumer confidence.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 unveils his massive $2tn infrastructure programme, which promises millions of jobs as part of a “once in a generation investment”. However, he’s immediately facing resistance over the tax hikes required to foot the bill. As March closes, U.S. equities have marked out their fourth consecutive positive quarter. Meanwhile, China’s post-virus recovery seems to stutter with the Caixin PMI index falling to its lowest level for almost a year. OPEC and its allies lower their demand forecast ahead of a key meeting today, while the CEO of Saudi Aramco tells CNBC he's confident of meeting dividend payout expectations. And in France, President Macron finally imposes a strict third national lockdown in a bid to halt spiraling Covid-19 cases and increasing hospitalisations.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Recovering global demand pushes Chinese factory activity to expand at its fastest rate in three months. On the other side of the Pacific, U.S. markets are jittery as the 10-year yield reaches a 14-month high and the fallout from the Archegos collapse continues. JPMorgan warns that the banking sector could be hit for up to $10bn as a result. President Biden is set to outline his multi-trillion-dollar infrastructure programme. The plan is already facing pushback over fears of a corporate tax raid to foot the bill. In vaccine news, there has been a fresh setback for Astrazeneca after Germany limited use of its vaccine to over 60-year-olds only over renewed safety fears. And Deliveroo begins conditional trading on the London Stock Exchange. Despite pricing at the lower end of its range, the food delivery titan’s listing is the LSE’s largest in a decade.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Billions of dollars of losses on Wall Street are exposed to the Archegos Capital fire sale fallout, with Nomura, Viacom and Discovery following Credit Suisse into the red. In Washington, President Biden aims to stave off CDC warnings of a late winter surge, saying 90 per cent of Americans will be eligible for Covid vaccines within the next month. Global sea trade resumes along the Suez Canal after the Ever Given super-container ship is finally refloated. Saudi Arabia calls for extended output cuts with markets turning their attention to upcoming OPEC+ talks. And in corporate news, Unicredit investors have been reportedly urged to protest against the €7.5m pay packet going to incoming chief executive Andrea Orcel.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Almost a week after running aground, the giant container ship the Ever Given is at least partially refloated, but the backlog of vessels in the Suez Canal remains. Oil prices fall as a result with traders pricing in the re-opening of supply routes. In the U.S., futures dip after seeing a record high during Friday’s session, which was dominated by a fire sale from Archegos Capital. Meanwhile, fears the U.S. could delist Chinese tech companies weigh on Bilibili shares after the Chinese video streaming company’s Hong Kong debut. And in Europe, French doctors warn that hospitals could be overwhelmed by the third Covid wave hitting the continent. German Chancellor Angela Merkel urges local states to tighten their lockdown restrictions.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asian equities are in the green, mirroring Wall Street gains after President Biden says his rescue plan is working and the U.S. recovery is burgeoning. The European Union backs down from a vaccine export ban but Commission President Ursula Von Der Leyen repeats calls for AstraZeneca to honour its delivery commitments to the bloc. The Ever Given container ship continues to block the Suez Canal, with the standstill costing an estimated $400m an hour in delayed goods. And social media CEOs testify on Capitol Hill on their roles in spreading online misinformation.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

AstraZeneca has revised down vaccine efficacy data after doubts were raised over its U.S. trial results. The pharma giant is also at the centre of the ongoing vaccine export row between the UK and EU. But, London and Brussels are looking to ease tensions and ramp up supplies across the continent. In market news, U.S. equities fall with the Nasdaq leading declines, despite 10-year treasury yields also heading south in a sign that the recent trading trend could be slowing down. Chinese tech stocks fall as well after the U.S. Securities Exchange Commission rolls out a Trump-era law aimed at forcing de-listings over auditing irregularities. Beijing is also under pressure from U.S. Treasury Secretary Antony Blinken who urged NATO allies to collectively push China to uphold its trading commitments.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

CNBC speaks exclusively to BIS general manager Agustin Carstens who says that clarity will come with rate normalisation but that investors should heed calls for patience. U.S. Treasury Secretary Janet Yellen and Federal Reserve chairman Jerome Powell testify jointly in a bid to reassure Congress over asset valuations and recovery jitters. On the one-year anniversary of the bull market, U.S. stocks slide amid continued concern over the recovery and rising cases on both sides of the Atlantic. The EU announces it will tighten vaccine export rules on the back of the bloc’s spat with AstraZeneca. The pharma company says it will publish further U.S. vaccine trial data following questions over efficacy. And in tech news, Intel is gearing up to challenge Asia’s chip-manufacturing dominance as it unveils plans to spend billions on U.S.-based factories.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

On the anniversary of the ECB’s emergency bond-buying programme, we hear exclusively from the central bank’s chief economist Philip Lane who says Treasury volatility will not necessarily spill over to Europe. U.S. Treasury Secretary Janet Yellen and Federal Reserve chair Jerome Powell are set to testify before Congress over the $1.9tn pandemic rescue bill. Meanwhile, President Biden is reportedly considering tabling a two-part infrastructure bill worth $3tn to boost the nation’s recovery. Tensions rise between Beijing, Brussels and Washington after the U.S., UK and the European Union slap sanctions on China over the treatment of Uighur Muslims in Xinjiang province, while China retaliates with its own set of broader sanctions against EU officials. And the U.S. NIAID says AstraZeneca may have potentially used outdated figures during its American vaccine trial.    See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

UK Prime Minister Boris Johnson is to confront EU leaders over threats to block AstraZeneca vaccine exports to Britain. Meanwhile the bloc’s two biggest economies face further Covid restrictions due to spiralling cases. Germany is set to extend the national lockdown for a fifth month and quarantine all arrivals into the country. The Turkish lira plunges to a record low against the greenback after President Erdogan fired the country’s central bank governor for raising interest rates. French lender Société Générale has withdrawn all long positions in the country as a result. In energy news, the world’s biggest oil exporter, Saudi Aramco, suffers a 44 per cent decline in earnings but maintains its dividend. And in a further blow to the struggling global semi-conductor industry, a major fire at Japan’s Renesas Group takes one its chip manufacturing facilities out of action.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Yields soar, hitting tech stocks. Both the S&P 500 and Nasdaq retreat in the face of the U.S. 10-year bill reaching a 14-year high. U.S.-China relations under the Biden administration are off to a rocky start as the superpowers’ top diplomats meet for the first time in Anchorage. The scheduled short opening session descended into an hour-long exchange of insults and acrimony over internal and foreign policy interference. Meanwhile, the European Medicines Agency has ruled that the Oxford-AstraZeneca Covid vaccine is safe following reports of blood clot-related illnesses and deaths. Several EU nations have now resumed their vaccination rollouts as a result. And in energy news, oil prices could be in for a tumultuous day and are lower this week overall after new lockdowns were announced across Europe, including France, stoking demand concerns.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Federal Reserve Chair Jerome Powell holds a dovish line. The central bank sees interest rates staying near zero until at least 2023, despite Fed members offering a more optimistic outlook for growth and inflation this year. Markets cheered Powell’s announcements with the Dow closing at over 33-thousand points for the first time while yields ease. However, U.S. futures point to a muted open on Wall Street today. In Europe, Dutch Prime Minister Mark Rutte is set to secure a fourth term in office, to become the country's longest serving leader. His VVD party are projected to win 35 of the 150 seats. Meanwhile the vaccine row on the continent heats up and the EU goes on the attack - warning it will hold back vaccine exports to nations it says are failing to deliver jabs to the bloc.  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 are on tenterhooks with all eyes on the Federal Reserve, as investors wait to see whether Fed Chair Jerome Powell will react to rising bond yields and increasing inflation speculation at the close of the two day FOMC meetings today. Back on the continent, it's the third and final day of voting in an election that could see Prime Minister Mark Rutte win a fourth consecutive term - having resigned in January over a child benefits scandal. The country’s relationship with the EU has been among the central issues for voters. Meanwhile, the European Union's medicines agency attempts to reassure the public over the safety of the Oxford-AstraZeneca coronavirus vaccine, after some member states paused its rollout with concerns over possible side effects. And a landmark moment for the gig economy as Uber's more than 70-thousand U.K. drivers get workers' rights from today -- earning the national living wage, and benefits like holiday and sick pay, after a ruling by the Supreme Court last month.See Privacy P

The Dow and S&P 500 hit new highs, as investors bank on the economy reopening. Investors will keep an eye out on the Fed which prepares to meet later today. In Europe, vaccine efforts could face delays after Germany, France, Italy and Spain all pause their Astrazeneca jab rollouts over blood clot fears. The European Medicines Agency's safety committee is due to meet today on the matter, as the WHO calls for calm. Meanwhile Down Under, Facebook strikes a deal with Rupert Murdoch's News Corp to pay for content in Australia, after the social media giant briefly cut off access to news in the country. And, Volkswagen announces six battery factories across Europe by 2030. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Biden signs the $1.9tn stimulus bill and in a prime time TV address he unveils the roadmap out of lockdown, urging eligible Americans to take the vaccine where possible. U.S. equities react positively with both the Dow and S&P 500 hitting new highs. Shares in South Korean web retail giant Coupang rally up to 40 per cent after the company lists on the NYSE - Wall Street’s largest listing so far this year. Coupang now has a market cap of $84bn. In further IPO news out of Asia, China’s Baidu is eyeing a secondary flotation in Hong Kong while Singaporean ride-hailing and delivery app Grab is set to go public through a SPAC. Meanwhile, there is renewed tension between Brussels and AstraZeneca as the company will reportedly miss already reduced delivery targets to the bloc.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. Congress passes the $1.9tn virus stimulus bill and sends it onto President Biden to sign into law. The Dow hits a record high, while U.S. Treasury yields pare down after moderate take-up in the latest 10-year auction. Across the Atlantic, ECB policy makers react with caution over rising sovereign bond yields ahead of today’s central bank meeting. GE is to sell its jet-leasing business to Ireland’s AerCap. The $30bn deal will create the sector’s largest lessor by market share. And South Korea’s answer to Amazon, Coupang, raises $4.2bn ahead of its NYSE listing – the biggest IPO in the U.S. this year so far.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Nasdaq marks its best session since November, just one day after slipping into correction territory, as bond yields ease. Latest data from China fuels inflation concerns, with factory prices rising at their fastest pace in two-and-a-half years. GFG Alliance holds last-ditch talks with Greensill Capital as the supply chain finance group files for insolvency, amid reports Softbank pumped $400m into the lender just months ahead of its collapse. And the EU and UK are once again at loggerheads over vaccine distribution, with Brussels accusing London of blocking exports, which Downing Street angrily denies.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.