Squawk Box Europe Express

Equities have rebounded following their worst week since October. Every S&P 500 sector is in the green with further optimism on the back of earnings due from Pfizer, Exxon Mobil, Amazon and Alphabet. Meanwhile, silver comes off an 8-year high. Posts on WallStreetBets deny retail investor Reddit groups are involved in the price move. U.S. President Joe Biden meets with GOP senators but rejects calls to scale back his $1.9tn virus stimulus bill. Republicans are still hoping for a compromise on the final figure. And in Europe, the vaccine roll-out row intensifies. European Commission President Ursula Von Der Leyen now blames her deputy Valdis Dombrovskis for the climbdown on vaccine export controls. We also hear exclusively from Baker Hughes CEO Lorenzo Simonelli who tells CNBC the energy sector will recover this year as it adjusts to working with the new U.S. administration.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-i

U.S. futures suffer a turbulent overnight session following last week’s heavy losses. Silver is now reportedly in the crosshairs of the short squeeze retail investors. In Washington, 10 Republican senators urge President Joe Biden to scale back his $1.9tn stimulus program but Democrats threaten to push the plan through themselves should they not receive support from across the aisle. China posts its slowest pace of manufacturing growth for seven months in January as weakening exports hamper the country’s pandemic recovery. The Burmese military has seized power in Myanmar, detaining both State Counsellor Aung San Suu Kyi and President Win Myint. The army has imposed a state of emergency for up to a year citing alleged election fraud last November. And in Europe, Anglo-Swedish pharma company AstraZeneca has agreed to provide the EU with 9 million more vaccine doses. Following a furious weekend row between London, Dublin and Brussels, the European Commission has u-turned over its threat to implement checks at th

Wall Street bounces back following its biggest sell-off since October. The retail investor frenzy heats up after Robinhood is slammed for restricting securities trade. But the app’s co-founder Vlad Tenev said the move intended to protect both GameStop and its customers. We hear exclusively from German Finance Minister Olaf Scholz who says that the fiscal measures taken by Berlin should lead the country to 3 per cent growth in 2021. Tensions between Brussels and AstraZeneca continue with German regulators now saying the Anglo-Swedish pharma company’s vaccine should not be given to over-65-year-olds. And in banking news, Commerzbank is set to announce it is axing up to a third of jobs. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street sells off as equity markets suffer their worst session since October, with volumes spiking in the heaviest trading day since 2007. Apple posts its largest-ever quarterly revenue of $100bn as every category sees rising sales. Shares, however, sink in after-hours trading. Facebook stock is also down, with CEO Mark Zuckerberg blaming Apple’s privacy reforms despite the social media giant beating quarterly forecasts. And shares in GameStop see another rollercoaster session rising by 134 per cent before falling as hedge funds scramble to cover short bets.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Microsoft shares surge in after-hours trade on the back of strong demand for its cloud services. Guidance has also topped expectations. AstraZeneca has stood its ground over its vaccine roll-out, after Brussels slams the pharma giant for not redirecting UK-bound doses to the bloc. We hear from the GAVI CEO Seth Berkley who says that global supplies will increase soon. In corporate news, Italian lender Unicredit is reportedly set to name Andrea Orcel as its new CEO, while LVMH sees a Q4 sales boom on Asian luxury demand and has promised to pay its dividend at pre-pandemic levels despite net profit falling by more than 30 per cent last year.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

ECB President Christine Lagarde tells CNBC the recovery this year may be “delayed, not derailed” amid further lockdowns and the risk of new virus variants. French Finance Minister Bruno Le Maire says the roll-out of the vaccine programme will be critical. President Joe Biden signs an executive order aiming to ramp up the U.S. manufacturing sector, while German economy minister Peter Altmaier is calling for a more attractive European model. In Italy, Prime Minister Giuseppe Conte is set to strategically resign in a move to seek a mandate to form a new government. And in banking news, UBS Q4 profit jumps by 137 per cent as the Swiss bank says current client activity points to further revenue increases 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.

The new Biden administration pushes Republican lawmakers to agree to a $1.9tn Covid relief fund after confirmed U.S. cases surpass 25 million. There is renewed tension over Taiwan with more than a dozen Chinese fighter jets entering the island’s airspace while a group of U.S. carriers led by USS Theodore Roosevelt arrive in the South China Sea. Former PBOC member Li Daokui tells this channel that normalising relations between Beijing and Washington will take time. In Germany, economy minister Peter Altmaier has voiced alarm at the global shortage of microchips for the auto sector. VW has reportedly threatened to seeks damages while Taiwan’s TSMC promises it will ramp up production for car companies.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 outlines his Covid-19 battle plan signing more executive orders on his first day in office but warned the virus situation was likely to get worse before things improve. Meanwhile, Wall Street turns its attention to Big Tech with the Nasdaq and the S&P hitting record highs once again. But Intel has had a minor setback as it has been forced to post earnings early due to a security breach after hackers stole sensitive financial information. In Germany, Siemens has beaten Q4 expectations but remains cautious on the global recovery in 2021. And the ECB holds its policy rates steady for January but President Christine Lagarde says the central bank is poised to react with all available instruments to support euro zone economies.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Joe Biden is sworn in as the 46th President of the United States, putting unity at the heart of his inaugural address. The new commander-in-chief immediately signed 17 executive orders upon entering the White House, some of which reversed Trump-era policies, such as the Paris Climate Agreement and the Muslim travel ban. U.S. equity markets cheered the inauguration, bouncing to fresh highs, but they were also buoyed by a slew of positive quarterly corporate earnings. European Commission President Ursula Von Der Leyen tells CNBC that the EU and the U.S. are on the same page in the need for tech regulation, which will be a key area in U.S.-EU relations moving forward.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Joe Biden is to be sworn in as the 46th President of the USA later today. The incoming commander-in-chief’s Treasury Secretary nominee, Janet Yellen, says that the U.S. will eventually afford a higher corporate tax rate and reiterates the need for fresh stimulus to exit the pandemic. Outgoing President Trump says he and his administration have completed what they had come to do in office. Meanwhile, bumper subscriber growth pushes Netflix stock up in after-hours trade. The streaming giant says it is close to becoming free cashflow-positive. U.S. banks kick off earnings season with Goldman Sachs seeing quarterly profits almost double while Bank of America beats on the bottom line but results are tempered by a modest consumer banking performance. And in Italy, Prime Minister Giuseppe Conte scrapes by in a confidence vote but fails to win an outright Senate majority following Matteo Renzi’s withdrawal of his Italia Viva party from the government coalition.See Privacy Policy at https://art19.com/privacy and

U.S. Treasury Secretary nominee Janet Yellen is to warn that the country is on course for a major recession unless lawmakers “act big” with her Senate confirmation hearing set for today, less than 24 hours ahead of President-elect Joe Biden’s inauguration. The incoming administration has said it plans to reinstate travel restrictions on European and Brazilian passengers lifted by President Trump. In corporate news, food giant Danone is under activist pressure from Bluebell Capital, which is calling for a leadership overhaul citing a slump in share price performance. Meanwhile in tech news, computer accessory maker Logitech has raised its 2021 guidance after posting a near-200 per cent surge in Q3 income on the back of the work-from-home phenomenon. And in Rome, the political chaos continues with Prime Minister Giuseppe Conte facing a key confidence vote in the Senate. The government coalition was split after former PM Matteo Renzi withdrew his party’s support over an EU virus fund rift.See Privacy Policy at h

China’s economic recovery gathers speed with Q4 growth beating expectations at 6.5 per cent. President-elect Joe Biden pledges to immediately repeal President Trump’s climate policies as Washington DC braces for potential violence ahead of Wednesday’s inauguration. In Germany, Armin Laschet wins the vote to become the new chairman of the CDU party and is now the frontrunner to take over from Angela Merkel as Chancellor. Samsung shares slide in Korea on the news that de facto leader vice chairman Jay Y. Lee is to serve a two-and-a-half year sentence for bribery and corruption. And in M&A news, French waste management giant Suez has received a potential takeover proposal from Ardian-GIP following an offer from its principal rival Veolia.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-elect Joe Biden has unveiled a massive new stimulus package worth $1.9 trillion dollars. The plan includes new relief cheques to some individuals, in addition to an earlier round of payments included in federal spending measures last month. Fed Chair Jerome Powell said the central bank will eventually raise interest rates and slow its bond-buying programme. But he added these moves will not happen in the near-term. U.S. weekly jobless claims rose to 965,000 last week, worse than forecast and hitting their highest point since August.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Italy is embroiled in political turmoil yet again after former prime minister Matteo Renzi pulls the plug on the Conte government. Renzi removed his party’s ministers from the coalition after a row about EU funding distribution following the pandemic. In the U.S., President Trump becomes the first ever American leader to be impeached twice. Ten GOP members joined Democrats in the House of Representatives to vote for the motion. Chinese December exports rise by more than 18 per cent on the same period last year. In another U-turn, the U.S. Treasury reportedly blocks plans to blacklist some of the biggest Chinese tech firms from markets Stateside. And in France, finance minister Bruno Le Maire has told Canadian retailer Couche-Tard to back off its proposed €16.2bn tie-up of supermarket giant Carrefour, citing concerns over national food sovereignty.    See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. Vice-President Mike Pence rules out invoking the 25th amendment to remove President Trump. The House of Representatives is set to vote on impeaching the president today. In a further crackdown against the outgoing U.S. leader, YouTube has suspended his channel for at least a week in light of the fatal storming of the Capitol building. Deutsche Post DHL enjoys a pandemic-related e-commerce boom, prompting the logistics giant to hike its outlook. Preliminary Q4 profits have jumped by 54 per cent. In retail news, Quebec-based convenience store firm Couche-Tard is reportedly eyeing French supermarket chain Carrefour in a tie-up that could be worth up to $50bn. And the U.S. has revamped its vaccine strategy with states asked to issue the dose to citizens aged 65 and over.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. House of Representatives moves to introduce an article of impeachment against President Trump which it plans to vote on tomorrow, a week after the deadly storming of the Capitol. As a result, Big Tech firms join other corporates in suspending political donations. However, social media giant Twitter sees shares nosedive over a growing backlash against the permanent banning of the U.S. president from its platform, along with more than 70,000 other accounts. German Chancellor Angela Merkel weighs in on the purge, calling it a “problematic” violation of the right to free speech. Goldman Sachs brings forward its $65 call on the oil price from the early end of Q2. Its commodities chief Jeff Currie tells CNBC that by 2022, oil is set to rebound to levels higher than before the pandemic.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Senior Democrats prepare to proceed with articles of impeachment against President Trump following last week’s deadly storming of the U.S. Capitol. Markets Stateside saw record highs on Friday despite the events. But futures point to a lower open this week after a disappointing jobs report for December while the 10-year Treasury yield rises to 1.1 per cent. Meanwhile, fallout from the White House ban against companies with connections to the Chinese military continues, as top Wall Street banks look to delist up to 500 structured Hong Kong market products. Both China and the U.S. suffer a record number of Covid-19 cases while UK health authorities warn the NHS is buckling under the weight of hospitalisation numbers. And, we speak exclusively to Daimler CEO Ola Kallenius who says the pandemic will affect H2 demand but is confident of delivering a sales increase for FY 2021.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The recently confirmed Democrat-majority Congress has boosted U.S. equities on hopes of further stimulus. President Trump promises a peaceful and orderly transition of power following Wednesday’s deadly storming of Capitol Hill. Tech and autos join forces with Chinese search giant Baidu linking up with Geely to create their own electric vehicles. Hyundai and Apple are also set to tie up on an EV project. Elon Musk overtakes Amazon’s Jeff Bezos to become the world’s richest man with a fortune of more than $185bn. This, as Tesla’s shares outgrow Facebook to become the S&P 500’s fifth-most valuable company. And in pharma news, Pfizer’s new Covid-19 vaccine appears to be effective against a number of new and infectious strains.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

There are chaotic scenes on Capitol Hill as hundreds of Trump supporters storm Congress, forcing both Republican and Democrat lawmakers to flee the chamber during a session to confirm Joe Biden as the next president. Congress was eventually reconvened after one woman died from an alleged police gunshot wound and three others passed away due to medical emergencies. This, as Democrats secured a second Georgia Senate seat and control of Congress following the victory of John Ossoff in run-off elections. In Hong Kong, online retailers Alibaba and Tencent see shares fall on reports that the U.S. is mulling whether to add them to a Chinese firm blacklist which already include three of the country’s biggest telcos. And in Europe, Moderna becomes the second Covid vaccine to gain approval by Brussels. The bloc has ordered 160m doses.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Markets eye the Georgia Senate race which still remains too close to call. Futures see-saw and the 10-year treasury yield is up 1 per cent for the first time since March. Meanwhile, President Trump signs an executive order to ban 8 Chinese apps, renewing trade tensions between Washington and Beijing. China sees services activity slide to a three-month low but it is still expanding with several regional outbreaks of Covid-19 hampering recovery. And in commodities, Saudi Arabia makes a surprise voluntary cut of one million barrels of oil a day, sending prices soaring to more than $50 for the first time since February 2020.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.