Squawk Box Europe Express

The first trading day of 2021 sees U.S. equities nosedive. The decline is the S&P 500’s biggest since 2016 while the Dow suffered its worst open in five years. All eyes are on the state of Georgia where voters go to the polls to decide control of the U.S. Senate. Meanwhile in the UK, Prime Minister Boris Johnson is banking on a successful roll-out of the Covid vaccine after plunging England into a third national lockdown with schools and universities shut. And Hong Kong markets surge higher after the NYSE goes against President Trump’s executive order to delist three of the largest Chinese telcos. In energy news, Opec and its allies disagree over output hikes. Saudi Arabia wants to hold firm but Russia says it’s time to ramp up production.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 Trump appears to try to convince Georgia’s state election head to overturn the result over alleged voting irregularities. Meanwhile, China sees manufacturing activity expand but fails to reach the decade high of November. And in Europe, fresh lockdowns are looming while Japan is considering a new state of emergency. But Britain’s Health Secretary Matt Hancock claims today marks a ‘pivotal moment’ in the country’s fight against the virus as it becomes the first to rollout the AstraZeneca-Oxford University vaccine, with 530k doses available today. UK Prime Minister Boris Johnson urges people to “think big” following the country’s official withdrawal from the European Union.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 signs the Brexit trade agreement after MPs overwhelmingly approved the deal. The UK is set to leave the EU at 11pm tonight. Soaring Covid cases and deaths across the UK force a further 20 million people into tighter restrictions. And in China, equities end 2020 on a high on the back of expanded December factory activity but overall growth slows on higher costs. After seven years of trade talks, Brussels and Beijing strike an investment deal which will see European companies receive better access to Chinese markets.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The UK becomes the first country to approve AstraZeneca and Oxford University’s vaccine candidate, a potential game-changer for the pandemic recovery. A Colorado man tests positive for the UK variant of the Covid virus. President-elect Joe Biden says the U.S. vaccine rollout is falling behind schedule. U.S. markets close lower following recent record highs after Senate Majority Leader Mitch McConnell stymies a vote on improved stimulus checks. In tech news, Intel shares are up after activist investor Third Point advises the chipmaker on ‘strategic investments in order to claw back market share. Spain sees the creation of its fifth-largest lender as the boards of Unicaja and Liberbank approve the merger.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump signs off on the $900bn virus stimulus package, sending U.S. markets soaring to fresh record highs. In Brussels, EU ambassadors unanimously approve the Brexit trade deal with British MPs set to vote on the agreement tomorrow. Alibaba shares rebound in Hong Kong after losing almost €116bn in the previous two sessions as Chinese regulators crackdown on Jack Ma's empire and its subsidiary Ant Group. And in the UK, the AstraZeneca-Oxford University Covid-19 vaccine is due to be approved as the Europe-wide vaccination rollout gathers pace.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Britain and the EU are expected to unveil a post-Brexit trade agreement today. The deal document is said to be around 2-thousand pages, with both sides having until December 31st to get Parliamentary approval. President Trump has vetoed a bipartisan defense bill, raising fears of a government shut down amid the country's vaccine roll-out. Congress will return on December 28th to decide whether to override the President's veto. Shares in Chinese tech giant Alibaba fell sharply after China's market regulator said it will launch an investigation into the company over antitrust concerns. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump has said he may not sign the 900 billion dollar bipartisan relief package, calling the bill a "disgrace." He is demanding changes to several key aspects of the bill, including an increase in direct payments to Americans. British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen have intensified direct talks in a bid to try and reach a compromise on fishing rights. France has re-opened its border with the UK, allowing freight and EU travellers with a negative Covid test to move between the two countries once again. This as the European Commission recommends the bloc review its blanket ban on travel from the UK.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow Jones claws back heavy losses of up to 2 per cent to close higher following fears of a new Covid variant spreading. U.S. Congress finally passes the latest virus relief bill worth $900bn, sending it to President Trump to sign off on – it’s the first tranche of federal funding since spring. London holds emergency talks with Paris in a desperate bid to reopen the Channel, while Prime Minister Boris Johnson insists the UK can cope with a no-deal Brexit. And in tech news, Apple overshadows Tesla’s first S&P 500 trading day with the announcement it will produce its own electric vehicles by 2024. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The UK government has warned the harsh new restrictions in London and across South East England could be in place for months. Prime Minister Boris Johnson imposed Tier 4 measures on Sunday morning, closing all non-essential shops and curbing travel in and out of the area. A number of European countries have banned travel from the UK to prevent the spread of the new coronavirus variant. Italy, Belgium, the Netherlands, Austria and Germany have all suspended flights in and out of Britain. Congress has finally agreed on a $900bn stimulus package, after several months of failed talks. The bill will provide direct payments and unemployment aid to millions of Americans impacted by the pandemic.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.K. Prime Minister Boris Johnson has warned talks over a Brexit trade deal are in a "serious situation." This, after a phone call with EU Commission President Ursula von der Leyen, who added "big differences" remain between the two sides despite progress on several key issues. French President Emmanuel Macron has a fever and a cough after he tested positive for coronavirus. That's according to the Elysee Palace, which says the President will isolate for a week while continuing to work remotely. The U.S. Food and Drug Administration's vaccine panel has overwhelmingly backed Moderna's vaccine candidate for emergency use - a move that could see it distributed for public use as soon as next weekSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The U.S. Federal Reserve promises to maintain the pace of its bond-buying programme to support the country’s economy until “substantial” progress is made in the recovery. This, as Chairman Jerome Powell warns of an uncertain half-year outlook. Meanwhile, Congress sees stimulus progress with lawmakers inching towards a $900bn virus rescue package. Markets Stateside see a mixed session with the Nasdaq soaring to a new record high. The U.S. Treasury labels Switzerland a currency manipulator, saying the Swiss National Bank has kept the CHF lower for trade leverage purposes. The SNB has rejected the allegations. British MPs may be recalled from holiday to parliament early next week to discuss and vote on Brexit trade talks as Brussels signals a possible way out of the impasse.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

There are significant hopes for a U.S. stimulus package after Senate Majority Leader Mitch McConnell said lawmakers are honing in on a rescue deal. Berkshire Hathaway CEO Warren Buffett tells CNBC this agreement by Congress is paramount to save small and medium-sized businesses. The U.S. Federal Reserve is expected to improve economic forecasts during its December meeting but is likely to stop short of expanding the bond-buying programme. In Europe, the ECB has asked banks to limit dividend payouts until September 2021 but eases restrictions on payouts for lenders across the euro zone. And in tech news, China’s biggest chip maker SMIC sees shares plunge after the co-CEO threatens to resign and the stock is removed from the MSCI index over U.S. blacklisting.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

COVID-19 infection rates continue rising, putting New York City at risk of a full lockdown, while London enters tougher restrictions after being moved into Tier 3. Up to six million doses of Moderna’s vaccine are set to be distributed across the U.S. pending FDA approval while the European Medicines Agency admits hackers have accessed information on the drug. The U.S. Electoral College has confirmed Joe Biden as the next President. The Democrat candidate criticised President Trump’s attempt to overturn the election’s result. In autos news, Volkswagen CEO Herbert Diess has cemented control of the German car giant with the backing of the board but has so far failed to agree a contract extension.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The UK and the EU have agreed to "go the extra mile" with Brexit trade talks, sending sterling higher. This, after Commission President Ursula von der Leyen and British Prime Minister Boris Johnson held a phone call on Sunday. The UK will revert to WTO trading rules if a deal isn't struck before December 31, while parliaments on both sides will also need to ratify any deal. Germany will go into a full lockdown over the Christmas period amid a rise in coronavirus deaths and infections. Non-essential shops and schools will close across the country starting on Wednesday. The vaccine rollout is now underway in the US, after the FDA granted an emergency approval for the Pfizer and BioNTech vaccine. The US government plans to deliver up to 3 million doses in the first 24 hours.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Prepare for a 'no-deal' Brexit - that's the warning from British Prime Minister Boris Johnson as Brussels adopts emergency measures to keep trade flowing if talks collapse. European leaders unlock €1.8 trillion in recovery funds after reaching a deal with Poland and Hungary. Shares in Airbnb double in their debut day of trade, at one point valuing the group at over $100 billion in the biggest U.S. IPO of 2020. Disney bets on its streaming platform, as the entertainment giant announces 10 new Marvel and Star Wars shows during its Investor Day, while raising prices for Disney plus. A group of FDA advisors vote in favour of authorising Pfizer and BioNtech's COVID vaccine for emergency-use, in a move that could see the drug rolled out across America within days.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Brexit dinner date fails to break the deadlock, as Britain's Boris Johnson and EU Commission chief Ursula von der Leyen give the two sides until Sunday to reach an agreement, sending sterling lower. European leaders are optimistic they can unlock €1.8 trillion in recovery funds after Germany strikes a deal with Hungary and Poland to overcome their differences on the bloc's budget. The ECB is expected to provide a fresh injection of stimulus, expanding and extending its bond buying plan as Deutsche Bank CEO Christian Sewing tells CNBC low rates are still hurting profitability. British and American regulators look into Pfizer and BioNTech's vaccine after two adverse allergic reactions, while the companies reveal hackers have stolen data on the drug in Europe. Airbnb prices its IPO at $68 a share - above its target range, while DoorDash shares surge over 80% in its debut day of trade, valuing the delivery group at $71 billion.See Privacy Policy at https://art19.com/pri

UK Prime Minister Boris Johnson heads to Brussels for an evening dinner meeting with EC President Ursula Von Der Leyen in an attempt to break the Brexit deadlock. This, after London scrapped the law-breaking elements of the Internal Market Bill. In the U.S., equities see record highs while treasury yields sink to new lows. JPMorgan CEO Jamie Dimon tells CNBC that he wouldn’t touch treasuries “with a ten-foot pole” right now. And there are reports that Softbank CEO Masayoshi Son is buying back shares in a bid to take the investment titan private.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Brexit talks are faltering once more with new demands from Brussels souring the mood in London. At the eleventh hour, France’s President Macron has reportedly intervened over fishing rights and state aid, sparking alarm in Downing Street. Oil prices surge as Opec+ comes to an agreement to relax output cuts in the New Year on an improved demand outlook following second-wave lockdowns. In the U.S., House Speaker Nancy Pelosi and Senate Majority leader Mitch McConnell are once again locked in talks in a bid to push through a bipartisan stimulus bill to release more virus aid and avoid government shutdowns. After the euphoria of the UK’s approval of Pfizer’s Covid vaccine earlier this week, the U.S. drug giant sees its shares fall after supply problems force it to slash its dose target in half.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump is set to receive a bill to sign off on delisting certain Chinese companies from U.S. stock markets, following a House vote unanimously supporting the law. German travel firm Tui sees shares dip after receiving its third state bailout following mounting virus-related losses. In London, the FTSE closed sharply higher on improved sentiment around yesterday’s Pfizer/BioNtech vaccine approval as well as the expiry of the UK’s second lockdown. And we hear from U.S. Federal Election Commissioner Ellen Weintraub who says that social media giants Facebook and Twitter could have taken stronger measures to combat misinformation online before last month’s U.S. election.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Highs on Wall Street, but deadlock in Washington DC. U.S. Senate majority leader Mitch McConnell rejects a bipartisan stimulus plan, while Treasury Secretary nominee Janet Yellen warns that failure to act will cause an “American tragedy”. U.S. AG William Barr has announced the DoJ has found no evidence of voter fraud in last month’s U.S. election. In corporate news, ARM CEO Simon Segars tells CNBC that Nvidia’s $40bn takeover deal is possible despite internal divisions.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.