Squawk Box Europe Express

We kick off our second Squawk Box from Davos with the latest news on the outbreak of the Coronavirus. The World Health Organisation prepares to hold an emergency meeting as China confirms 440 cases and the first patient is diagnosed in the U.S. Fears of a pandemic are keeping markets on edge. We speak to the boss of pharma giant AstraZeneca to get his take on the mysterious pneumonia-like illness.Hong Kong Chief Executive Carrie Lam tells CNBC she is disappointed with yesterday’s Moody’s rating downgrade, defending her reaction to the unrest in the territory seen throughout 2019. But she adds that her resignation is not the answer.In the U.S., Boeing takes the wind out of the Dow with shares sinking on a fresh warning that the 737 Max will now not be back in the air before mid-2020.And, later today CNBC hosts a star-studded WEF panel discussing the 'Future of Financial Markets', featuring U.S. Treasury Secretary Steven Mnuchin, IMF Managing Director Kristalina Georgieva, UK Chancellor Sajid Javid and UBS Chai

A digital tax truce. We kick off our coverage of the World Economic Forum in Davos, as French President Emmanuel Macron and U.S. President Donald Trump reach an agreement to avoid a levy on big tech and retaliatory tariffs on French goods until the end of this year.But the forum braces for a showdown between President Trump and Greta Thunberg, as both the American leader and the 17-year-old climate activist prepare to take the stage at the World Economic Forum today.In Asia, equities turn negative amid heightened concerns over the spread of a virus in China that is being compared to the SARS outbreak of 2002-2003.Moody's cuts Hong Kong's credit rating, saying officials have no tangible plans to address the unrest in the territory.And we speak to the CEO of EY who tells us the U.S. economy is looking good, thanks to strength in the labour market, while the boss of Schneider Electric says sustainability is a mega-trend that will not hurt profits.See Privacy Policy at https://art19.com/privacy and California Pri

Davos descent… top business leaders and policy makers begin arriving in Davos, Switzerland, as Oxfam reports that the planet’s roughly 2,000 billionaires own more wealth than 60 per cent of the global population. We will be live at the 50th World Economic Forum all week, starting today at 1600 CET. In energy news, oil prices surge after a military blockade in Libya causes the closure of the country’s two biggest oil fields. In France, President Macron attempts to woo top Davos-bound executives and investors at the third ‘Choose France’ summit. While in the UK, Chancellor of the Exchequer Sajid Javid warns businesses they will not align with Brussels after Brexit, prompting criticism from manufacturers.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Taking its toll…China posts its weakest growth data in almost three decades, suggesting that the trade war with Washington is weighing heavily on the economy despite the 6.1% print for the full-year GDP coming in line with estimates. In the U.S., the Senate hears the charges against President Trump ahead of his impeachment trial as a government watchdog finds that the White House broke the law by withholding military aid to Ukraine. The S&P 500 hits a new record high, crossing the 3,300 mark for the first time, buoyed by robust bank earnings and data. And Google parent company Alphabet joins the trillion-dollar valuation club, only the fourth member in history, joining tech peers Amazon, Apple and Microsoft. We also hear from Microsoft CEO Satya Nadella who tells this channel his company is pledging to neutralise its carbon footprint within the next four years, investing up to $1bn in removal technology.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/pri

The biggest ever seen…President Trump hails the signing of Phase 1 of the trade agreement between Washington and Beijing but insists tariffs will remain in place until Phase 2 of the deal is completed. Vice-Premier Liu He says the deal is 'win-win' for both sides as well as on a global level and promises to increase foreign access to Chinese markets. In Russia, Prime Minister Dmitry Medvedev and the government resign following President Putin’s sweeping proposals to reform the constitution which could see his reign extended. We are also live in Riyadh where the Kingdom’s former head of intelligence, Prince Turki al-Faisal, tells CNBC exclusively that the Iranian regime is imploding.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Sign on the dotted line…Beijing and Washington are on the verge of inking Phase 1 of the trade deal but U.S. Treasury Secretary Steven Mnuchin insists that tariffs shall remain in place until China signs the second phase of the agreement. President Trump voices anger at Apple for refusing to work with U.S. authorities, helping to unlock its cell phones involved in criminal investigations. Meanwhile, earning season kicks off on Wall Street. Bond trading revenues have buoyed Citigroup and JPMorgan in the fourth-quarter, with the latter enjoying its most profitable year on record. And, the Obama-era Iran nuclear deal looks closer to unravelling as the E3 powers – the UK, France and Germany – trigger a formal dispute device in a bid to force Tehran to comply with the JCPOA. The move could lead to fresh UN sanctions. We also hear exclusively with BlackRock CEO Larry Fink who says climate change is the most serious challenge he has seen in four decades in finance.See Privacy Policy at https://art19.com/privacy and

Label lost…the offshore yuan surges to its highest level in half a year after the U.S. ceases calling Beijing a currency manipulator, just a day ahead of the expected signing of the Phase 1 trade deal in Washington. Asian shares rise to seven-month peaks on the positive sentiment generated, which has seen Chinese trade data post better-than-expected gains in December. In the U.S., the Nasdaq and S&P 500 are also in the green, reaching fresh record highs buoyed by tech stocks but it’s the big Wall Street banks in the spotlight at the start of earnings season. And in telecom news, U.S. officials voice their anger at UK ‘madness’ ahead of a key decision on whether to allow the Chinese tech giant Huawei access to Britain’s launch of 5G.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Tehran in turmoil…furious anti-government protests spread from the Iranian capital across the country. Demonstrators demand the regime’s leaders step down after they admit Iranian forces mistakenly shot down a Ukraine International Airlines plane last week, killing 176 people on board. Asian stocks soar to 19-month highs as Beijing and Washington prepare to sign their ‘phase one’ trade deal, but weaker-than-expected jobs data and ongoing Middle East tensions caused Wall Street to close in the red last week. And Taiwan re-elects President Tsai-Ing-wen in a landslide victory, sending a strong message to Beijing about its attempts to gain control of the island's democratic government.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

An avoidable tragedy…intelligence from the U.S., UK and Canada suggests that the downed Ukraine International Airlines passenger jet was likely hit by an unintentional Iranian missile near Tehran. In Washington, Congress votes to curb President Trump’s ability to take military action against the Islamic Republic in the wake of the killing of General Qasem Soleimani but the resolution will remain non-binding. Wall Street rises, boosted by a new all-time high from Apple shares after Chinese iPhone sales were reported to have grown up to 18 per cent in December. And in Brexit news, the House of Commons finally passes Boris Johnson’s withdrawal bill with a majority of 99 and without any amendments. The bill now passes to the House of Lords to be approved.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Back from the brink? Wall Street and Asian stocks rebound after President Trump claims that Tehran is stepping down from further confrontation with Washington following the killing of General Qasem Soleimani and retaliatory Iranian missile strikes on U.S. targets in Iraq. The news also helps to stabilise oil prices with WTI back in correction territory, as Trump also vows further sanctions on Iran. Former Nissan CEO Carlos Ghosn has made his first public appearance since fleeing bail in Japan, declaring his innocence in the face of financial misconduct charges. He tells CNBC that the charges form part of a conspiracy by Nissan executives to challenge Renault’s control over the alliance. In London, Prime Minister Boris Johnson and Ursula Von Der Leyen lay out their Brexit lines. The European Commission President said that an in-depth trade deal between the UK and the EU is impossible to achieve by the end of the year.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19

Iran hits back… Tehran launches more than a dozen missiles, targeting U.S. military bases in Iraq, in retaliation for the assassination of General Qasem Soleimani. Asian stocks sell off, while the Dow points lower amid the escalation in the U.S.-Iran crisis. Oil and gold initially surge, but cap gains as President Trump plays down the impact of the latest attacks. In an apparently separate incident in Iran, a Ukrainian Airlines Boeing suffers technical problems and crashes after take-off. According to state media, all 170 passengers on board are believed to be dead. And in Lebanon, the world’s media awaits former Nissan CEO Carlos Ghosn’s first press conference following his surprise escape from house arrest in Japan. His Japanese legal team has accused the auto maker of ‘perversion of truth’ leading to the financial misconduct charges brought against him.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Knock-on effect… Wall Street pushes Asian stocks into the green after the Nasdaq posts its biggest intra-day comeback for three months, with Alphabet hitting a new record high. Geo-political fears keep gold prices at a seven-year high as Iranians hold mass funeral processions for Qasem Soleimani throughout the country. NATO says that a full-blown war between the U.S. and Iran is in nobody’s interest and Washington denies it will be withdrawing U.S. troops from Iraq due to the recent unrest after an internal memo leak. And in auto news, Tesla’s market value reaches $80bn for the first time as the Model 3 saloon car rolls off the production line in Shanghai.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Upping the ante… Iran withdraws from the 2015 nuclear accord and vows to expel the U.S. from the Middle East following the funeral of military commander General Qasem Soleimani, who was killed by an American airstrike last week. The soaring tensions have caused Asian stocks to sink and oil prices to spike as President Trump threatens to hit 52 Iranian sites in case of retaliation, as well as sanction Iraq. In Japan, there are moves to tighten immigration rules as prosecutors break their silence following the escape of former Nissan chairman, Carlos Ghosn, calling his actions ‘illegal and unjustifiable’. Pro-democracy protests in Hong Kong show no signs of abating and have continued near the border with China following the appointment of party-faithful official Luo Huining to run the Hong Kong Liaison Office.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Oil prices soar following Pentagon confirmation that a drone strike has killed Iran’s top military commander in Baghdad. President Trump had ordered the strike following the storming of the U.S. embassy complex in the Iraqi capital which had been approved by General Qassim Soleimani. Iran’s foreign minister has slammed the U.S. action as ‘rogue adventurism’. The rising tensions between Washington and Tehran have impacted gains in Asian stocks and U.S. futures are set to open lower following yesterday’s new record highs. The dollar has slumped against the yen and gold has surged to a nine-month peak as a result of the escalating frictions.    See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

New Year Records…the S&P 500 has closed 2019 with its best annual gain for six years while Netflix was crowned the index’s top-performing stock, increasing value by 4,000% in the past decade. Beijing cuts its reserve requirement for banks once more, boosting Chinese stocks and offering the economy a $115bn fillip. Hong Kong is once again wracked by violence with anti-government protestors holding their first rallies of the new year. There has also been further violence in Baghdad where U.S. troops have driven back pro-Iranian militia supporters who had stormed the American embassy compound. Also, speculation rises over how ousted Nissan chairman Carlos Ghosn managed a remarkable escape from Japan, where he was awaiting trial for financial misconduct in April.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Gone AWOL…ousted Nissan chairman Carlos Ghosn flees Japan where he has been awaiting trial for financial misconduct. Ghosn has arrived in Beirut saying that he will ‘no longer be held hostage’ by a rigged Japanese legal system. The U.S. market rally finally falters with stocks notching their worst day in a month but Wall Street can boast its best performance in six years overall. In Asia, Chinese stocks haven’t fared much better on the last day of trading this year despite manufacturing numbers beating expectations. Huawei has managed to shrug off the effects of U.S. blacklisting, hitting a record $122bn in revenue. The Chinese tech giant is, however, expecting a tricky 2020 saying that ‘survival’ is its no.1 priority.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Relief rally…Chinese stocks outperform after the S&P 500 posts a fifth consecutive week in the green on the back of optimism surrounding the U.S.-China phase one trade deal. Washington launches airstrikes on Iran-sponsored militias operating in Iraq and Syria following the killing of an American contractor and warns Tehran of further military action. In auto news, Tesla begins deliveries of its Chinese-built Model 3 just one year after construction of the Shanghai Gigafactory began. And Nissan has reportedly called for sweeping spending cuts as a string of executive scandals and partnership tensions with Renault weigh on sales and profit.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A Santa rally: The Dow Jones hits another record high following a stellar performance throughout 2019. Boeing forces out CEO Dennis Muilenberg following the production halt of its problematic 737 Max airliner last week. Board member David Calhoun is now poised to take the reins in January. German car giant BMW announces it is under investigation by the Securities & Exchange Commission over its sales reporting in the U.S. And in energy news, Russian prime minister Dmitry Medvedev shrugs off the threat of U.S. sanctions on the Nord Stream 2 project, promising the Baltic Sea pipeline linking Russia and Germany will be operational within the next few months.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street looks set to end the decade with a bang. The S&P 500 is up by almost 190% since 2009. Asian stocks see red ahead of Christmas, despite news that China will cut import tariffs on a range of products from January 1st, as both President Trump and Xi Jinping say the Phase One trade deal will be signed soon. In energy news, Berlin and Moscow accuse Washington of interference over U.S. sanctions linked to the Nord Stream 2 pipeline project in the Baltic Sea. And in India, Prime Minister Narendra Modi remains defiant in the face of nationwide protests and violence over controversial new citizenship legislation.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 tops 3,200 for the first time ever as U.S. Treasury Secretary Steven Mnuchin tells CNBC that ‘phase one’ of the trade deal with Beijing will be inked in early January. There'll be a new boss at Threadneedle Street. The FCA's Andrew Bailey is set to take over from Mark Carney as the Bank of England governor from February. We hear exclusively from the new European Union economy chief, Paolo Gentiloni, who tells this channel that monetary policy alone won’t be enough to move the bloc out of the doldrums. And in Washington, President Trump demands a speedy Senate impeachment process but looks to be frustrated by House Speaker Nancy Pelosi who intends to push the GOP to meet Democrat procedural demands.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.