Squawk Box Europe Express

The S&P 500 hits a new record high following the Federal Reserve’s decision to cuts rates for a third time this year. Chairman Jerome Powell says the current monetary policy stance is now likely to remain on hold but should the outlook change the central bank would be ready to respond. In China, manufacturing contracts for a sixth consecutive month and the cancellation of the APEC summit in Chile next month dashes hopes of a trade deal between Washington and Beijing. In corporate news, Apple’s soaring wearables revenues help the tech giant beat Q3 expectations, offsetting a slump in iPhone sales. Facebook also beats expectations in the third quarter but the results are overshadowed by rival Twitter’s announcement it will ban all forms of political advertising across its platform. And there’s big movements afoot in the autos sector with the board of French car maker PSA approving a tie-up with Fiat Chrysler, potentially worth more than $40bn.  See Privacy Policy at https://art19.com/privacy and C

Big bank earnings and a mega merger in the auto sector set the tone. Swiss banking giant Credit Suisse more than doubles net profit in the third quarter thanks to strength in its wealth management business. But German rival Deutsche Bank suffers a different fate as restructuring costs weigh on results, leading the lender to post a steeper than expected loss in Q3. Emerging markets focused bank Standard Chartered sees shares rise after it beats estimates with a 16 percent jump in third quarter profit. We speak to the CFO about the growing headwinds due to geopolitical tensions. In the autos sector, Italian-U.S Fiat Chrysler and French rival PSA are reportedly in talks to merge in a deal that would create a near 50 billion dollar car giant. And in the U.K., lawmakers back PM Johnson's call for a December 12th general election, in an effort to break the Brexit impasse.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Strong earnings and hopes of a U.S.-China trade deal drive the S&P 500 to a fresh record high, while investors bet on a third rate cut from the Fed later this week. In tech, Alphabet shares fall in extended trade after Google’s parent company misses Q3 profit estimates, as rising costs outpace a strong performance in ad sales. In the U.K., Prime Minister Boris Johnson loses his third attempt to force a snap election but vows to try again, while the EU agrees to a 3-month Brexit delay. Commerzbank shares close higher, as the German lender beats expectations with a surprise jump in quarterly profit, in results released ahead of schedule. And finally, Euro Zone leaders praise Mario Draghi’s vision, as he prepares to hand over the reigns after 8 years at the helm of the ECB.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Europe’s biggest bank HSBC warns of challenges ahead after reporting an 18 per cent plunge in third-quarter pre-tax profit. It missed expectations due to a weak performance in the European market but Chief Financial Officer Ewen Stevenson tells CNBC business in Asia is holding up despite the impact of the global trade disputes and unrest in Hong Kong. A 'mixed' picture for electronics group Philips in the third quarter, with margins still under pressure. CEO Frans van Houten tells CNBC the group moved too slowly to counter the effects of the U.S.-China trade war. LVMH goes after the little blue box in what could be the biggest M&A deal in Europe this year. The French luxury giant reportedly offered $14.5bn for U.S. jeweller Tiffany’s. In the latest Brexit development, Brussels is reportedly set to sign off on a three-month extension until January 31st, with the possibility of an earlier exit if U.K. Parliament ratifies the divorce deal.See Privacy Policy at https://art19.com/priva

Market cap wipeout…Amazon shares fall sharply in after-hours trading as the e-commerce giant misses Q3 expectations for the first time in two years due to one-day shipping costs. The tech conglomerate has also predicted a weaker-than-expected holiday season this year. It’s also a busy day for earnings from across the board in Europe. The world’s biggest brewer AB Inbev lowers its guidance, warning that tough market conditions will continue for the rest of the year after missing profit expectations in the third quarter. Kering sees strong growth in the third quarter particularly in Asia, which helps off-set losses incurred due to the ongoing democratic crisis in Hong Kong. And in politics, sterling recovers losses following Prime Minister Boris Johnson’s push for a general election on December 12th in exchange for granting lawmakers more time to scrutinise his Brexit deal.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-inf

Farewell Frankfurt…ECB president Mario Draghi prepares his final press conference before stepping aside for Christine Lagarde amid a backdrop of negative rates and weakening data in the euro zone. We are live in Frankfurt to look at his legacy. In corporate news, Tesla shares soar more than 20 per cent following a surprise Q3 beat but Ford slides and cuts its full-year profit forecast, warning of a slowdown in China. There's a similar story in the German automotive sector, where Daimler cuts the revenue outlook for its trucks division. Nokia lowers both its 2019 and 2020 profit guidance as the Finnish telco warns tough competition is squeezing margins. It also halts its dividend as it ramps up investments in 5G amid battles with rivals.Meanwhile on Capitol Hill, Facebook founder Mark Zuckerberg is grilled by the House Financial Services Committee over his company’s planned entrance into the cryptocurrency market.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https:/

Yes, but…U.K. lawmakers vote to approve Boris Johnson's Brexit deal, but reject a three-day timeframe to pass the bill, leaving it up to EU leaders to grant an extension to next week's October 31st deadline. We are live in Westminster and Brussels as both sides react to the latest stalemate. In China, plans are reportedly afoot to replace embattled Hong Kong CEO Carrie Lam following months of increasingly violent anti-government protests in the city state. ABB kicks off a busy earnings day for European blue-chips. The Swiss industrial group warns of weakening conditions in the U.S. and China, but sees net profit fall less than expected in the third quarter. We are also live in Frankfurt where Mario Draghi is set to oversee his final policy meeting as ECB president.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Brexit block… House of Commons Speaker John Bercow denies Prime Minister Boris Johnson a straight yes or no meaningful vote on the Brexit deal he secured last week, saying that debating the motion would be ‘disruptive’. MPs will today debate the Withdrawal Bill being published by the government. In corporate news, Swiss lender UBS beats Q3 expectations on the bottom line but CEO Sergio Ermotti tells this channel that challenges persist for investment banking and wealth management. In the U.S., the S&P 500 falls short of its all-time high by just 1 per cent off the back of trade optimism and earnings. We also hear from Russia’s finance minister, Anton Siluanov, who tells CNBC that his country is not seeking to capitalise from damaged relations between Washington and Beijing. And in M&A news, this channel learns that Softbank is in talks to buy WeWork, valuing the workspace logistics provider at $7.5BN-8BN.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https:/

Brexit Bedlam…sterling dips following U.K. MPs’ Saturday delay to a vote on the deal struck by Prime Minister Boris Johnson and Brussels last week. The EU has received a forced extension request from No.10 but Johnson remains steadfast and is preparing to table another vote to get the divorce agreement through Parliament and ensure the U.K. leaves the bloc by October 31st. Lebanon is paralysed by a fourth day of massive anti-government protests as Prime Minister Saad Hariri rushes to push through a raft of economic reforms in a bid to quell the unrest. We are live in Beirut for the latest. Meanwhile, at the IMF annual meetings in Washington, we hear exclusively from UBS chairman Axel Weber who warns that central banks are increasingly losing their way, with negative rates causing despair among European investors.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Boris scores a Brexit breakthrough in Brussels. We host a special Brexit Endgame edition of Squawk Box, live from London, Brussels and Belfast. It is now up to Prime Minister Johnson to convince MPs to pass the agreement during an extraordinary parliamentary session scheduled tomorrow in order for EU leaders to officially ratify the deal by October 31st. However, he faces pushback from Northern Ireland where the DUP says it cannot abide by Johnson’s proposals due to serious concerns over customs and tax regulations. Elsewhere, China's third-quarter GDP grows at its slowest pace in almost 30 years, as weak factory production and an ongoing trade war weigh on the world's second-largest economy. And in corporate news, French automaker Renault has slashed its full-year revenue and profit forecasts citing weak sales outside of Europe.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Down to the wire... The U.K. and EU press on with last-ditch talks to try and secure a Brexit deal to present to leaders in Brussels. However, Northern Ireland’s DUP dashes hopes saying it cannot back the current proposal. We are live in Brussels for the latest on this fast-moving story. In the U.S., retail sales slump for the first time in seven months, increasing economic jitters. But on the trade front, Treasury Secretary Steven Mnuchin says that negotiators are working on the draft of a ‘Phase One’ trade deal with counterparts in Beijing. In corporate news, Netflix surprises to the upside, winning more subscribers than expected, while Facebook tries to convince the market its cryptocurrency Libra will ‘overcome problems’ once regulatory issues are resolved.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Burning the midnight oil – U.K. and EU negotiators hold talks in London and Brussels late into the night, appearing to edge closer to a last-minute withdrawal deal, but certain sticking points remain unresolved. In Hong Kong, vocal protests in the Legislative Council session itself force the territory’s Chief Executive Carrie Lam to deliver her policy address via video link. In Washington, the IMF warns that the U.S.-China trade war, a ‘synchronised’ global slowdown and ongoing geo-political uncertainty have prompted the fund to cut 2019 growth forecasts to the lowest level since the 2008 financial crisis. And on Wall Street JP Morgan soars after the lender smashes forecasts, but Goldman Sachs doesn’t fare as well, hit by losses from its investments in WeWork and Uber.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Turkey gets sanctioned. The U.S. imposes immediate penalties on several Turkish ministers and slaps Ankara with a 50 per cent tariff on steel , demanding a halt to its military incursion into Kurdish-held northern Syria. We are live in Istanbul for the latest. U.S. stocks slip and oil prices extend losses as questions arise over the U.S.-China trade deal, despite U.S. Treasury Secretary Steven Mnuchin telling this channel that the first phase of the pact is ‘quite substantial’. China's September producer prices fall at their fastest pace in three years, while pork prices surge nearly 70 per cent pushing food prices higher. And it’s crunchtime for the U.K. and the EU. Brexit negotiators have battened down the hatches and entered so-called ‘tunnel talks’ ahead of a key summit later this week. The EU’s chief representative Michel Barnier says a deal this week remains possible.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell

Trade deal light – Asian stocks follow the U.S. into the green after a tentative truce is agreed between Washington and Beijing. President Trump hails the progress but critics suggest concessions have been made to China. Meanwhile, data reveals Chinese imports and exports fell more than expected in September. We are live from Westminster at the start of a crucial week for Brexit, after the UK and EU admit that a lot of work still needs to be done to reach a withdrawal agreement ahead of a key summit in Brussels. The Queen will outline the government’s plan in her speech at the state opening of parliament today. And in Syria, the U.S. pulls out its final troops from the north as a Turkish cross-border incursion rages. Humanitarian concerns over the operation have prompted President Trump to threaten Ankara with ‘powerful’ sanctions.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Trade deal optimism fuels a rally as high-level talks between the U.S. and China get underway and President Trump hails the progress ahead of a planned meeting with Chinese Vice-Premier Liu He later today. In the U.K., sterling jumps to a two-week high against the dollar after Irish Taoiseach Leo Varadkar said he saw a ‘pathway’ to a Brexit deal following positive talks with Prime Minister Boris Johnson. In corporate news, SAP CEO Bill McDermott announces his plans to step down following a decade at the helm of the German software titan. New co-CEO Jennifer Morgan tells CNBC that the time is right for a change of leadership. And luxury German fashion group Hugo Boss revises its full-year outlook for the second time this year citing weak U.S. sales and the ongoing anti-government protests rocking Hong Kong.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Tit-for-tat becomes tittle-tattle… conflicting messages plague the progress of the U.S.-China trade talks, set to resume today. Asian equities and U.S. futures hold steady after sources tell CNBC that reports talks have collapsed are false. But the Federal Reserve’s September meeting minutes show that trade war concerns continued to weigh on the minds of board members when they voted to cut rates last month. Turkey launches an incursion against Kurdish forces across Syria’s northern border after President Trump’s weekend decision to move U.S. troops out of the region. And in corporate news, luxury goods giant LVMH posts better-than-expected third-quarter numbers in Europe and the U.S. but also in Asia, despite the impact of the Hong Kong crisis.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Restricted and blacklisted. Asian stocks dip following a sharp plunge on Wall Street after the U.S. administration slaps visa restrictions on Chinese officials for alleged human rights abuses of Xinjiang Uighurs ahead of trade talks tomorrow. The move comes one day after Washington blacklisted 20 Chinese entities, drawing a harsh response from Beijing, which has called on the U.S. to stop interfering in its affairs. Meanwhile, Federal Reserve chairman Jerome Powell says the Fed will grow its balance sheet but cautions that the move should not be confused with the large-scale quantitative easing the central bank resorted to after the financial crisis. In the U.K., the pound slides following suggestions by No.10 that Brexit talks with Brussels are on the verge of collapse. The Irish Taoiseach Leo Varadkar says a deal is highly unlikely ahead of next week’s EU leaders’ summit. We are live in Luxembourg for the Euro Zone finance ministers' meeting.See Privacy Policy at https://art19.com/privacy and California Pri

The charm offensive ends. The Hong Kong Exchange drops its 39 billion dollar bid for the LSE, admitting it failed to convince the London bourse of its ‘strategically compelling’ vision. Asian stocks rise ahead of U.S.-China trade talks later this week, even as Washington blacklists more Chinese firms ahead of a new flashpoint between the two countries after an NBA official sends a tweet in support of the Hong Kong protesters, which is met with a cold response in China. In tech, Samsung beats estimates despite signaling a 56 percent fall in third-quarter profit, while guidance suggests a turnaround is on the way for memory chip prices. And further job cuts for Thyssenkrupp as it is set to reveal a restructuring plan with new CEO Martina Merz presenting her proposals at a leadership meeting today.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow jumps more than 350 points after the jobs report puts the economy in a sweet spot, but it's a cautious trade in Asia as investors eye high level U.S.-China trade talks due to restart this week. A report suggests Beijing is looking to narrow the scope of the deal. HSBC is reportedly set to slash up to ten thousand jobs as the lender looks to cut costs under new interim CEO Noel Quinn. It’s a calmer day in Hong Kong after anti-government demonstrations turn violent as tens of thousands protest against the city's use of emergency law, drawing their first warning from the Chinese military. And the French President Emmanuel Macron says the EU will decide on a Brexit deal by the end of the week, as UK Prime Minister Boris Johnson says the block shouldn't bet on a delay.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. equities bounce back following two days of selling off, while weak economic data raises hopes the Federal Reserve will cut rates later this month. We look ahead to the jobs report for more signs. President Trump doubles down on his call for Ukraine to investigate the Bidens and urges China to look into the former Vice-President too, as the impeachment inquiry gets under way. In tech news, Facebook founder Mark Zuckerberg defends plans to encrypt the company’s messaging system as authorities in the U.S., U.K. and Australia say that the decision will put the public at risk. We are also live in Parma, Italy, to hear from the food industry ahead of a looming tariff tussle between the EU and Washington.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.