Squawk Box Europe Express

China’s largest chipmaker, SMIC, sees its shares nosedive by almost 20 per cent on concerns the company could be blacklisted by the U.S. administration. In Washington, U.S. Treasury Secretary Steven Mnuchin says he expects a deal to fund the government until December to be agreed upon by the White House and Congressional Democrats by the end of this week. Japan’s investment giant Softbank’s shares slide after being branded the ‘Nasdaq whale’ for buying up massive bets on U.S. tech stocks. European Commissioner Paolo Gentiloni tells CNBC that Europe must find a way to counter American tech dominance. Meanwhile France sees a record surge in infection cases, as drugmaker Sanofi says its Covid-19 vaccine could be priced for as low as €10 a shot.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Selling strikes Wall Street… The Dow sinks over 800 points in its worst day since June, as investors flee tech stocks in an abrupt end to the winning streak. Apple shares plunge 8 percent in the stock's worst day since March, as the tech giant loses $150bn in market value during the session. Asian equities see red, following US majors lower, as big technology firms across the region lead declines. And we are live at the Ambrosetti Forum on Lake Como where the mood among attendees remains cautious amid the market turbulence.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 enjoys its best day since mid-July, soaring 450 points on the back of strong U.S. factory orders offsetting weaker-than-expected in private payrolls. In China, the Caixin PMI grows for the fourth straight month in August as the service sector sees a surge in hiring for the first time since January. The French government is set to launch a €100bn virus relief package as Covid-19 cases continue to grow. And in corporate news, German lender Commerzbank has announced it will be ditching EY as its auditor as the fallout from the Wirecard accounting scandal continues.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Starting September with fresh record highs... The S&P 500 and Nasdaq touch new peaks as U.S. manufacturing activity rises to a 19-month high, with new orders jumping to levels not seen since 2004. In Japan, Chief Cabinet Secretary Yoshihide Suga is expected to throw his hat in the ring to fill the void left by outgoing Prime Minister Shinzo Abe. And in corporate news, Swiss pharma giant Roche unveils plans to launch a fast-track Covid-19 test in Europe with results available within 15 minutes.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

China’s Caixin manufacturing activity grows at its fastest rate in almost a decade, driven primarily by new export orders rising for the first time in 2020. It’s a mixed start to September for Asian indices with concerns that the rally seen in August is waning on higher volatility around the U.S. elections. CNBC learns that Chinese video app developer ByteDance has chosen its preferred U.S. bidder for Tik Tok after Microsoft, Wal-Mart and Oracle shares plunge on rumours that the deal may require the green light from Beijing. Zoom shares soar more than 25 per cent in extended trading after revenues rise by 350 per cent following increased demand for video-calling during global Coronavirus lockdowns.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Tiktok's sale of its U.S. operations could hit another roadblock after China's Commerce Ministry tightens its regulations on technology exports. Meanwhile, China’s official PMI points to a recovery spurred by demand with services in August growing at a higher rate than July. Chinese manufacturing activity continues to expand in August, but slightly under expectations. In Japan, Abe’s resignation does not deter Warren Buffett’s Berkshire Hathaway from buying stakes in Japan's five leading trading companies, sending shares higher. Asian stocks rise on the final day of trade for the month, after the Dow erases this year's losses and the S&P 500 looks set to have its best August in nearly 34 years. And Nestle makes an offer to buy food allergy prevention expert Aimmune for $2.6bn dollars, as the conglomerate looks to expand its health portfolioSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Japanese Prime Minister Shinzo Abe has resigned over his health. The news caused Tokyo stocks to slide, wiping out about $47 billion of market value, while pushing the yen higher. The Federal Reserve will allow inflation to temporarily overshoot its 2 percent target, in a major policy shift that it hopes will stimulate the U.S. economy. Chair Jerome Powell highlighted the risks to persistently low inflation in a move that is set to see interest rates stay lower for longer. President Trump has formally accepted the Republican nomination for president in the final day of the party's national convention. Trump delivered his speech from the White House, breaking with tradition by using the executive mansion as a political backdrop and defying pandemic guidelines addressing a packed and largely mask less crowd.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Hurricane Laura makes landfall on the Texas-Louisiana state border - now rated a Category 4 storm. Texas Governor Greg Abbott has warned that Laura’s storm surge is ‘unsurvivable’. Federal Reserve Chairman Jerome Powell is expected to signal a major policy change as global central bankers attend a virtual Jackson Hole symposium. The third night of the Republican National Congress sees a surprise visit to Baltimore by President Trump as renewed racial tensions rage in Kenosha, Wisconsin. Vice-President Mike Pence tells the RNC that Trump’s re-election is fundamental to maintaining law and order. And in media news, TikTok CEO Kevin Mayer has resigned, citing a changing political landscape following the U.S. administration’s moves to ban the Chinese video app for alleged threats to national security.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asian indices fail to follow the S&P 500 which hits a third consecutive high despite U.S. consumer confidence falling to a six-year low. The U.S. Gulf Coast braces for Hurricane Laura which is gathering strength towards Texas and Louisiana. Major oil facilities have been evacuated and Brent reaches a five-month peak. The second night of the Republican National Congress defies convention as First Lady Melania Trump delivers her speech at the White House and Secretary of State, Mike Pompeo, from Jerusalem on a diplomatic trip. Trade tensions between Washington and Beijing continue to wane but Mexico’s nominee to lead the WTO tells CNBC the basis of trust and cooperation between the world’s two largest economies has been severely eroded.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asian markets near a two-year high, following the new record set by the S&P 500 on the back of Covid-19 vaccine optimism. Washington and Beijing both signal progress in renewed trade talks. The Dow closes above the 28,000-mark after a major reshuffle which sees Exxon Mobil, Pfizer and Raytheon Technologies substituted by Salesforce, Amgen and Honeywell. At the Republican National Congress in Charlotte, North Carolina, President Trump officially accepts the presidential nomination and warns that Democrats are aiming to ‘steal’ the election in November. And in a world first, there is confirmation a 33-year-old Hong Kong man has been re-infected with Coronavirus for a second time.  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 reportedly aiming to fast-track AstraZeneca’s Covid-19 vaccine, bypassing safety standards as the FDA is set to award the British company and Oxford University ‘emergency use authorisation’ in October. In tech news, Microsoft backs Epic Games in its payment confrontation with Apple. The creator of Fortnite says Apple is unlawfully trying to stamp out any opposition, and the entire gaming industry could be affected. Washington and Brussels agree to a ‘mini-deal’ on almost $200m worth of tariff cuts amid growing signs of easing trans-Atlantic trade tensions. And in a historic scenario, the Gulf of Mexico braces for twin tropical storms Marco and Laura, which are set to make landfall later this week.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Joe Biden formally accepts the Democrat presidential nomination and uses his speech to slam President Trump for allegedly failing in his most basic duties to the American nation. Putin critic Alexei Navalny is fighting for his life in Omsk, Siberia, after falling ill in a suspected poisoning. Reports suggest he may be transferred to Germany for treatment. In France, President Emmanuel Macron hosts Germany’s Chancellor Angela Merkel. The pair have vowed to avoid further virus lockdowns and border closures at any costs. And in auto news, a U.S. judge has thrown out parts of a lawsuit which claimed Volkswagen had misled its investors over the 2015 emissions scandal, but upheld SEC claims against former CEO Martin Winterkorn.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asian markets plunge into the red on jitters over the U.S. pandemic recovery after the Fed paints a gloomy economic picture and hints at potentially more central bank measures to come in September. The Democrats’ choice for vice-president, Kamala Harris, officially accepts her nomination and tells the virtual DNC that the Trump presidency has left U.S. citizens in fear. Apple reaches a new milestone to become the first ever company to achieve a $2tn market valuation. This means the tech giant makes up to 7 per cent of the total worth of the S&P 500 index. And in Frankfurt, the DAX reshuffles its blue chips, pushing disgraced payment processor Wirecard out and letting Delivery Hero in, after the takeaway firm’s strong surge in performance during lockdown.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A historic high for the S&P 500 as the index manages to recoup its entire Coronavirus losses with a 54 per cent jump from the lows of March. This marks the end of the shortest American bear market in history. U.S. Treasury Secretary Steven Mnuchin slams Democrats for delaying a fresh stimulus bill and tells CNBC that Main Street is greatly affected by the impasse. Joe Biden is formally announced as the Democratic Party presidential nominee. Key party figures vow Biden will end the ‘chaos’ of the Trump administration. And in Hong Kong, the Hang Seng morning session is cancelled as Typhoon Higos drenches the territory.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

CNBC learns that U.S. software giant Oracle is challenging Microsoft for Chinese app TikTok’s North American assets. BHP has missed its full-year forecasts but keeps its dividend. The Anglo-Australian miner warns that most economies will continue to contract throughout the rest of the year but iron ore prices are set to rebound. In the U.S., a virtual Democratic National Convention has opened with former First Lady Michelle Obama focusing her ire on President Trump’s leadership. And in Belarus, a first sign of concession as President Alexander Lukashenko has reportedly said he would hold a new leadership referendum if the current anti-government protests cease.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. House Speaker Nancy Pelosi recalls lawmakers in a bid to resolve the mail-in voting dispute. CNBC hears exclusively from senior White House advisor Jared Kushner who defends President Trump’s handling of the Coronavirus pandemic. The U.S. leader piles more pressure onto Chinese firms by threatening to extend his ban on TikTok to include online retail giant Alibaba. Trade talks between Washington and Beijing have been delayed indefinitely. Warren Buffett’s Berkshire Hathaway dumps almost $13bn of shares with the investor selling down its bank stakes in Wells Fargo, JPMorgan and Goldman Sachs. France reports more than 3,000 Covid-19 cases in a single day, while Germany extends a travel warning for Spain’s Balearic islands as fears of a second wave of the virus sweep across western Europe.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese retail and manufacturing data for July fails to signal a significant rebound for the economy, raising concerns about China’s rate of recovery. Asian equities have reacted to the downside. In the U.S., President Trump threatens to veto the virus stimulus bill should it involve postal funding for mail-in voting. The Senate is now adjourned until next month potentially causing further delay. Israel and the United Arab Emirates agree a U.S.-brokered peace deal, creating diplomatic ties between the two nations and suspending Israel’s annexation of Palestinian territories in the West Bank. UAE Foreign Minister Anwar Gargash tells CNBC the agreement could diffuse some threats to peace. And France has vowed to retaliate after the U.K. hits travellers with a 14-day quarantine on their return from the country.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. indices remain defiant in the face of stalled virus stimulus talks with the S&P 500 closing just under record highs. President Trump calls Democratic lawmakers’ demands ‘ridiculous,’ as negotiations for a rescue package remain gridlocked. Joe Biden and his running mate Kamala Harris make their first joint appearance, and the Vice-Presidential candidate immediately launches an attack at President Trump’s handling of the Coronavirus pandemic. The U.K. is considering adding France to its quarantine list where case numbers have soared by more than 2,500 in a day. The British government is wary, however, of repeating the mayhem sparked by its sudden measures against Spain. And German travel giant Tui secures a €1.2bn state aid package from Berlin to see it through the winter.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A stalemate in talks between Democrat and GOP lawmakers over a multi-trillion dollar stimulus package helps end a week-long rally for the Dow Jones and S&P 500, outweighing optimism over a Covid-19 vaccine. This, as Russia announces it has granted approval for its Sputnik V drug. Presidential candidate Joe Biden chooses Kamala Harris as his running mate – the first black woman to be chosen on a major party ticket. President Trump is swift to attack Harris’s record as a former rival to Biden in the Democrat primaries. And in a bid to make stocks more accessible, electric car maker Tesla offers a 5-4-1 share split, sending valuations soaring in after-hours trading.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asian markets rally, following U.S. stocks into the green with the Hang Seng and Nikkei leading the pack. Investors opt out of the tech sector and move towards cyclical stocks. U.S. lawmakers remain divided over the virus relief package, but Treasury Secretary Steven Mnuchin tells CNBC that President Trump’s strategy will yield results in reviving the economy. In Lebanon, the government resigns following last week’s massive port explosion and ongoing protests. Outgoing Prime Minister Hassan Diab blames endemic corruption for the tragedy. And German drug developer Curevac hopes to raise $245m to fund a potential Covid-19 vaccine by listing on the Nasdaq.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.