Squawk Box Europe Express

A new front opens…Washington escalates the trade war, this time hitting the EU with tariffs on up to $7.5bn worth of goods. The U.S. plans to impose a 25% levy on a range of European products, including French wine, Italian cheese and Scottish whisky. The moves comes after the WTO ruled against the EU in a 15-year-old dispute judging the bloc’s subsidies to plane makers Airbus and Boeing to be illegal. President Trump hails the win but trade tensions and weaker-than-expected U.S. jobs numbers trigger a global stocks sell-off, causing the weakest day of trade on Wall Street in six weeks. In the U.K., Prime Minister Boris Johnson sets out his final proposal for a Brexit deal, including Irish backstop concessions but the reaction from the EU remains mixed. We are live in Brussels for the latest reactions.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

An October fright: global stocks see red and the Dow wipes out all of its third-quarter gains on the opening day of Q4 after U.S. manufacturing activity hits a decade-low. In the U.K., Prime Minister Boris Johnson is set to reveal his final Brexit ultimatum to the European Union, ruling out asking for any extension should Brussels turn down his offer. Hong Kong experiences further unrest overnight following the police shooting of a teenaged pro-democracy demonstrator. The violence is some of the worst the Special Administrative Region has seen since anti-Beijing protests erupted 17 weeks ago. And in Silicon Valley, Facebook founder Mark Zuckerberg has panned Democratic presidential hopeful Elizabeth Warren’s plans to break up large tech companies should she reach the White House, saying that he fancies his chances in any subsequent legal battle.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

“Reputational damage” – Credit Suisse CEO Tidjane Thiam survives the spying scandal, but the bank’s COO resigns following an internal probe that finds he acted alone in ordering the surveillance of former wealth management chief Iqbal Khan. We report from Zurich as the lender apologises for the affair that has gripped the Swiss banking community. We are also live from Hong Kong and Beijing, where President Xi Jinping pledges peaceful development as China marks the 70th anniversary of the founding of the People’s Republic, while the Special Administrative Region braces for more mass pro-democracy protests. We speak exclusively to the boss of Deutsche Post DHL, as the logistics giant boosts investments despite the economic slowdown in air freight.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Shares in AB Inbev’s Asia Pacific unit jump in its Hong Kong debut, in the second largest IPO of the year. On the city streets, protests turn violent, as police use tear gas and water cannons against anti-government demonstrators ahead of the 70th anniversary of Chinese communist rule. In the U.S., the whistleblower at the heart of the impeachment inquiry into President Trump is set to testify as early as this week. And in the U.K., with the threat of a no-deal Brexit looming, British Prime Minister Boris Johnson refuses to rule out leaving the EU without a deal, while health secretary Matt Hancock tells CNBC he would prefer an agreement.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Capitol Hill remains front and centre. A whistleblower report alleges President Trump abused his power in a call with Ukraine's leader, and that the White House tried to cover it up. We’re live in Kiev as the U.S. president once again denies any wrongdoing, while the House Intelligence Committee chairman says the complaint provides a roadmap of allegations that need to be investigated. China's industrial profits fall in August as the trade war with the U.S. continues to weigh on the economy. But CNBC learns that talks between Beijing and Washington are set to resume on October 10th. Huawei CEO Ren Zhengfei tells CNBC exclusively that the Chinese tech giant hopes to keep doing business with Google, but is biding its time on the U.S. blacklist. And not fit for purpose – shares in Peloton dive in the fitness start-up’s market debut.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Noted. The White House releases the transcript of the phone call between President Trump and Ukrainian president Volodomyr Zelensky, which reveal the U.S. president asked for help in investigating Democratic presidential candidate Joe Biden and his son over links to a Ukrainian energy company. We are live with the latest from Kiev as attention turns to the complaint from the whistleblower - expected to be made public today. U.S. stocks jump after Trump hints that a trade deal with Beijing could come sooner than expected while Washington signs a trade deal with Tokyo focused on agriculture, autos and digital. In the U.K., Prime Minister Boris Johnson returns to parliament since the suspension and is met by angry lawmakers demanding his resignation. And the ECB sees a high profile exit, as Sabine Lautenschlager quits from the central bank’s board over its latest easy money measures.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do

Impeachment inquiry… U.S. House of Representatives Speaker Nancy Pelosi launches an official probe into President Trump over alleged abuse of power during a phone call with Ukrainian President Volodomyr Zelenskiy, saying “no one is above the rule of law.” The news sends the S&P 500 lower, with the index logging its worst day in a month, and garners a furious reaction from Trump who calls the move “witch hunt garbage”. He also promises to release a transcript of the conversation in which he is accused of seeking dirt on political rival, former U.S. vice-president Joe Biden. In the U.K., opposition leaders call on Boris Johnson to resign after the Supreme Court rules his suspension of parliament is unlawful, prompting the British Prime Minister to cut short his visit to New York. And in corporate news, office rental firm WeWork CEO Adam Neumann resigns in the face of shareholder pressure following his failed attempt to take the company public.See Privacy Policy at https://art19.com/privacy and California Pr

A long goodbye… Outgoing ECB President Mario Draghi says the bank is ready to cut rates again ahead of his final meeting next month. His successor, Christine Lagarde, tells CNBC she is concerned that on-going trade tensions between the US and China will hang over economic growth like a ‘big, dark cloud’. We are live in Westminster ahead of the U.K. Supreme Court ruling over Prime Minister Boris Johnson’s decision to prorogue parliament. And in corporate news, brewing giant AB Inbev raises $5bn for its Asian business in what is set to be the second-largest IPO of the year.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

End of an era… UK travel company Thomas Cook collapses, sparking the biggest peacetime repatriation of British citizens in history. We have the latest from the chair of the Civil Aviation Authority. Oil prices surge as the U.S. sends additional troops to the Gulf further heightening tensions with Iran. We hear exclusively from Saudi foreign minister Adel bin Ahmed Al-Jubeir, who calls Tehran’s threats ‘ridiculous and laughable’. Asian stocks fall following shortened U.S.-China trade talks despite the Ministry of Commerce calling the negotiations constructive. And the Bank for International Settlements voices fears about negative interest rates. UBS chairman Axel Weber tells CNBC they are beginning to affect the investor environment.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The world’s top money managers and policymakers talk to CNBC at the exclusive Delivering Alpha conference. Vice-President Mike Pence tells CNBC that he hopes for a U.S.-China trade deal to come into fruition, but the days of U.S. economic surrender are over, as deputy-level talks resume in Washington. Hedge fund giants and asset management bosses like Leon Cooperman, Luke Ellis and Mary Callahan Erdoes warn that negative rates are hurting savers, defying the normal rules of economics and calling it the “most absurd thing” central banks have ever done. And in Germany, the government is in intense negotiations to agree on an extensive green investment program potentially worth €40bn.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Blurred vision…Federal Reserve President Jerome Powell cuts rates by 25bps for only the second time in a decade. However, the central bank takes a more hawkish stance than markets expected and fails to give clear direction on future policy, revealing increasing divisions on the board. President Trump once again slams the Fed for its opacity and ‘lack of guts’. Over in Japan, the BoJ keeps rates steady but suggests it may provide new stimulus measures next month. Saudi Arabian authorities display debris they say was found at the scene of last weekend’s attacks on Aramco, while on a visit to the kingdom, U.S. Secretary of State Mike Pompeo calls the incidents tantamount to an act of war.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

“Like a phoenix from the ashes” - Saudi energy minister Abdulaziz bin Salman seeks to calm oil markets, saying the kingdom's supply will be fully back online by the end of the month. We are live in Jeddah as crude oil extends its losses on the back of the Saudi government's assurances following the Aramco attacks. U.S. stocks rise ahead of a widely anticipated 25 basis-point cut in interest rates from the FOMC. A CNBC survey shows that more than 90 per cent of market participants expect further easing in December. But hopes of a trade deal between Washington and Beijing have been dealt a blow after President Trump suggested it may have to wait until after next year’s U.S. election. CNBC hears exclusively from House Speaker Nancy Pelosi who says a multi-lateral approach with Beijing would have been preferable. And we report from Israel, where there is no clear winner in the nation’s second election in five months.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at ht

The Saudi strikes lead to an oil shock for the global economy. Crude prices trim gains after Brent has its best day on record following the attacks on Saudi Aramco's facilities. President Trump says Iran looks to be the likely culprit but plays down the prospect of armed conflict, saying he is in no rush to respond. He also hinted that the move in energy assets is reason enough for the Federal Reserve to cut rates. The geopolitical risk weighs on Asian stocks, but there is a ray of hope for U.S.-China trade talks as Washington and Beijing confirm that deputy-level negotiations are set to resume later this week. In Europe, however, Brexit talks remain in deadlock following U.K. Prime Minister’s visit to Luxembourg while the Supreme Court in London is set to hear whether his proroguing of parliament is indeed lawful.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Strike on Saudi Arabia… Crude prices surge after attacks shut down two of Saudi Arabia’s largest energy facilities, slashing the kingdom’s output by half. Washington blames Iran for the incident but Tehran has denied any involvement. President Trump tweets the U.S. is ‘locked and loaded’ depending on the verification of the culprit, while also authorising the release of American petroleum reserves. We are live in Riyadh for the latest. Chinese industrial output growth slows to a 17-year low in August amid further signs that the trade war with Washington is hurting China’s economy. We are also live in Luxembourg ahead of U.K. Prime Minister Boris Johnson’s meeting with outgoing European Commission President Jean-Claude Juncker.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Draghi delivers…global stocks move into the green with the Dow hitting a record high after outgoing ECB President Mario Draghi offers the euro zone a sweeping stimulus package featuring a rate cut and a new bond-buying programme. EU commissioner Valdis Dombrovskis responds to Draghi’s call for fiscal action, telling CNBC it will be discussed by European finance ministers in Helsinki. Investors will now turn their attention to the Federal Reserve’s rate decision next week. Asian stocks receive a boost as President Trump delays tariffs on Chinese goods and hints at a possible interim trade agreement with Beijing. In Abu Dhabi, OPEC ministers demand that members accelerate agreed oil production cuts while Russian energy minister Alexander Novak tells CNBC exclusively that President Trump’s market-moving tweets ultimately have zero-impact on his forecasting considerations.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A gesture of goodwill…Asian equities are in the green after President Trump decides to delay tariffs on $250bn of Chinese goods as the People’s Republic celebrates its 70th anniversary. Beijing responds in kind by waiving levies on several American products. But the real action is in Frankfurt, where Mario Draghi is expected to fire his big parting shot. The ECB is widely expect to cut the deposit rate, revive quantitative easing and add a number of other easing measures to offset the slowdown in the euro zone. The Hong Kong Exchange launches a $37bn takeover bid for the London Stock Exchange but political concerns could still derail it. The former CEO of the LSE tells CNBC that the proposal is an ‘aggressive move’ that will attract close scrutiny from shareholders. And we are live at the Opec+ meeting in Abu Dhabi where the group is meeting to discuss oversupply concerns following its cut to the 2019 oil demand outlook.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at http

The highly-charged ECB watch begins. Asian equity markets and bond yields rise with investors focused on what Mario Draghi will deliver in his final rate-setting meeting before leaving the presidency in Frankfurt. Expectations are high with analysts forecasting more QE, a cut to the deposit rate, tiering, fresh TLTRO loans and dovish forward guidance.Apple unveils its latest smartphone incarnation, the 11, while also slashing costs for its TV service, stirring up a streaming battle. President Trump fires his hawkish national security adviser John Bolton, sending oil prices lower, as investors cut bets on escalating tensions with Iran.  In Brussels, incoming European Commission President Ursula von der Leyen has unveiled a new team of commissioners while in the U.K., Prime Minister Boris Johnson has vowed he will continue to work for a Brexit deal as parliament begins its five-week suspension.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://

Swings and roundabouts… easing trade tensions help drive the Dow to a four-day winning streak but Chinese markets tick lower following last month’s producer data marking its steepest decline in three years. In Berlin, rumours of a shadow budget to circumvent national spending laws push Bund yields to a one-month high. In Brexit news, we hear exclusively from Irish finance minister Paschal Donohoe, who doubts much progress can be made in breaking the backstop impasse. Meanwhile, Prime Minister Boris Johnson loses a second vote to call a snap election as parliament is prorogued but he is adamant he will not ask Brussels for a withdrawal extension. We are also live at the Frankfurt Motor Show where Volkswagen CEO Herbert Diess tells CNBC that the U.S.- China trade war is being felt throughout the automotive industry.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Brexit bedlam…Prime Minister Boris Johnson suffers another cabinet resignation over his government’s no-deal stance but Brexit secretary Stephen Barclay tells CNBC exclusively that efforts to secure a deal with the EU are in progress. Asian stocks rally on the news that Beijing is stimulating the Chinese economy with a RRR-cut as export figures prove the trade war with Washington is beginning to bite. We are live at the World Energy Congress Forum in Abu Dhabi where U.S. Treasury official Sigal Mandelker exclusively tells this channel that the U.S. is finally making inroads into curbing illicit shipping in the Gulf. And Hong Kong suffers its 14th consecutive weekend of unrest with pro-democracy demonstrations showing no signs of abating despite the Legislative Council scrapping a controversial extradition deal.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

It’s good to talk…the U.S. and China agree to resume trade negotiations, prompting the Dow to surge by more than 350 points – its best day in three weeks. The news also sparks hope across Asian markets ahead of U.S. jobs reports but Fitch downgrades the Hang Seng after months of violence across the Hong Kong Special Administrative Region. We are live in Westminster for the latest on Brexit where Prime Minister Boris Johnson is set to ratchet up his demands for an early election. In Rome, the new PD-Five Star coalition government is sworn in, but the challenge of delivering a budget to Brussels this autumn still lies ahead. We are live at the Ambrosetti Forum on the banks of Lake Como with in-depth analysis.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.