Squawk Box Europe Express

Boris blocked. Conservative Party rebels and opposition lawmakers deliver U.K. Prime Minister Johnson a double defeat in the House of Commons, taking a no-deal Brexit off the table and also refusing to allow him to call a snap general election. We are live from Westminster with the latest. In Asia, markets rally on confirmation from the Chinese commerce ministry that trade talks between Washington and Beijing are set to resume in October. The Hang Seng enjoys extended gains following Hong Kong Chief Executive Carrie Lam's withdrawal of the controversial extradition bill, which is hoped will stem the violent protests in the Special Administrative Region. Over in the U.S., two-year treasuries slump to their lowest point since 2017, while we hear exclusively from Goldman Sachs CFO Stephen Scherr who says anxieties over a recession are becoming increasingly apparent.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chaos in the Commons. Conservative Party rebels aid opposition lawmakers to defeat the U.K. government in a vote to block a no-deal Brexit in October but a defiant Prime Minister Boris Johnson says he’ll seek an early election should he lose today’s vote on the bill. We are live in Westminster for the latest. In the U.S., markets close in the red after the first day of trading following the Labor Day weekend with manufacturing numbers shrinking for the first time in three years. It's a mixed session in Asia as the private Caixin survey reveals China's services activity hit a 3-month high in August. Plus, we speak exclusively with Lebanese Prime Minister Saad Hariri who tells CNBC he fears a war amid rising tensions between the U.S. and Iran.  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 lays down the gauntlet to his Brexit opponents, asking them to back the government or risk a snap general election in October if they block a no-deal Brexit in Parliament later today. We are live from Westminster as Sterling hovers around levels not seen in two-and-a-half years. Beijing launches a formal complaint against the U.S. at the WTO over its latest round of tariffs which now effect up to $300bn of Chinese goods. The south-eastern United States braces for Hurricane Dorian to make landfall after the slow-moving mega-storm killed 5 people and destroyed 13,000 homes in the Bahamas. And, we are live in Beirut where the Lebanese government is preparing to declare an economic state of emergency amid simmering tensions between Hezbollah and Israel.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A new phase in the trade war. Washington slaps a fresh 15 per cent levy onto a range of Chinese goods while Beijing retaliates by imposing a 5 per cent tariff on U.S. crude oil. President Trump, however, is upbeat about talks later this month. Hong Kong sees a 13th consecutive weekend of pro-democracy protests with many turning violent. Demonstrators clashed with police, blocking roads and disrupting airport transport links. In Italy, designated Prime Minister Giuseppe Conte voices confidence over upcoming coalition talks but Five Star leader Luigi Di Maio sounds a more lukewarm tone, telling CNBC exclusively that his party will only enter a new government if its demands are met. And in the UK, Prime Minister Boris Johnson threatens Conservative MPs with deselection if they choose to side with opposition lawmakers in an attempt to thwart his Brexit plans.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

It’s the end of the month with stocks finishing in the green amid signs that U.S.-China trade tensions have cooled somewhat. This, despite fresh tariffs on Chinese goods coming into effect on 1st September. We are live in Rome where former Prime Minister and PD leader Matteo Renzi tells CNBC exclusively that he refuses to play a part in the new coalition government because of personal issues with Five Star but he urges international investors to bring their business to Italy. In the U.K., Prime Minister Boris Johnson says that he will ‘step up the tempo’ on EU withdrawal talks but he’ll face stiff opposition in parliament next week as lawmakers attempt to block a no-deal Brexit. And in Asia, Hong Kong braces for a 13th consecutive weekend of protests following the arrests of several prominent pro-democracy activists.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

There are extraordinary political developments afoot across Europe. The pound slides on news that the Queen approves Prime Minister Boris Johnson’s request to prorogue parliament for up to five weeks, greatly increasing the chance of a no-deal Brexit. The move leaves opposition parties and Remain supporters outraged with critics slamming the PM’s actions as anti-democratic. However, Johnson remains unfazed, saying that there will be ample time to debate Brexit before the October 31st deadline for EU withdrawal. Over in Italy, an end to the political stand-off is in sight, for now, with the PD and Five Star on track to lead a coalition government. Giuseppe Conte is expected to be reappointed as prime minister. Across the pond, energy stocks outperformed to leave markets in the green. The Dow Jones moves more than 250 points in a volatile session but investor sentiment is ultimately kept in check by further falls in the bond yield.See Privacy Policy at https://art19.com/privacy and California Privacy Notic

Tumbling yields weigh on U.S. markets with all three major indices finishing in the red and set to break a two-month winning streak. Recession fears remain with the 10-year yield versus the two-year rate dropping to its lowest level since before the financial crisis. In Rome, the 10-year yield falls to a new three-year low off the back of constructive coalition talks between PD and Five Star. There are, however, concerns that the country could still hold autumn elections if a government isn’t formed by the end of the day. And in corporate news, BP decides to call it a day in Alaska, shedding its assets in the U.S. state for $5.6bn in a bid to increase its balance sheet.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Global markets surge on fresh hopes of a resolution in the trade dispute between Washington and Beijing after President Trump says that China is ready to agree a deal, backing up his tough style of negotiation. We are live at the G7 in Biarritz, France where host President Emmanuel Macron has said he was willing to broker a pact between the U.S. and Iran over nuclear tensions following suggestions from both President Trump and President Hassan Rouhani that they were ready to talk. And in Italy, the Partito Democratico and Five Star inch towards forming a government as Prime Minister Giuseppe Conte meets with party heads.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Markets dive first thing this morning as China ups the ante in the trade dispute with Washington, slapping tariffs onto $75bn worth of U.S. goods. President Trump has hit straight back, however, demanding that American manufacturers seek out alternatives to Chinese markets but he left observers confused by comments hinting that he may have regretted escalating the trade war. We are live at the G7 in Biarritz, France, for the latest. Investors looking for a safe haven have pushed gold prices up to a six-year high but oil prices fall on the back of recession fears. And Hong Kong is again rocked by violence for the 12th consecutive week with police drawing weapons and firing water cannons at pro-democracy protestors.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

It’s all about the Fed. Investors around the world are on tenterhooks as they await a speech from Federal Reserve chairman Jerome Powell at the Jackson Hole symposium, which could send strong signals on the outlook for U.S. monetary policy. Two Fed presidents tell CNBC that they don’t see a case for further interest rate cuts in 2019. This side of the Atlantic, sterling enjoys its best day in almost 3 months following German chancellor Angela Merkel’s positive comments on finding an Irish backstop Brexit solution. However, French president Emmanuel Macron stands firm saying that the mechanism is indispensable to the withdrawal agreement. Italian President Sergio Mattarella gives political parties five days to ink a coalition deal, as the PD sets red lines for a partnership with Five-Star, raising the prospect of snap elections.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Divisions within the Federal Reserve are exposed in the latest minutes, as policy-makers suggest that July’s rate cut does not signal a pre-set easing cycle. The central bank cites the trade tensions with China as a ‘persistent headwind to growth’. Meanwhile, the U.S. yield curve inverts once more on nagging recession concerns but President Donald Trump deflects attention to Germany, hailing its negative yields despite the first 30-year zero-income bund auction receiving scant interest. German Chancellor Angela Merkel hosts new U.K. prime minister Boris Johnson and lays down a 30-day challenge to him to resolve the Irish backstop conundrum. France’s President Emmanuel Macron, who Johnson visits today, says blame for a no-deal Brexit will be laid squarely at Britain’s door. And in Italy, President Sergio Mattarella has begun party talks to form a new governing coalition. The opposition PD party is attempting to woo Five Star into an alliance, albeit with stringent conditions. The potential for fresh elections

Instability in Italy. We’re live in Rome where Prime Minister Giuseppe Conte resigns with a scathing attack on interior minister Matteo Salvini whom he accuses of political opportunism. We discuss the next steps to form a new government with an Italian senator and assess the bond market reaction, as investors take a sanguine view on the crisis. Over in the U.S., the Dow breaks its 3-day streak after President Trump shows no signs of backing down in his trade war with China. Trump also takes aim at the EU, saying he can get anything he wants from the bloc by threatening its car sector. British Prime Minister Boris Johnson has his request to drop the backstop roundly rejected by Brussels as he sets out to meet German chancellor Angela Merkel and French president Emmanuel Macron this week.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Wall Street rebound is on. U.S. stocks nearly wipe out all of last week's major losses, with the Dow managing to reach an intra-day high just 5 per cent below its all-time record. In Asia, stocks edge higher as the PBOC sets its new lending reference slightly lower on its first day and Washington grants Huawei a 90-day extension of its sales permit but simultaneously adds more affiliate companies to its blacklist. Facebook and Twitter move to block accounts they say are being used in pro-Beijing propaganda aimed at stymieing the Hong Kong pro-democracy protests. Chery Kang reports from the territory as chief executive Carrie Lam says she hopes the peaceful rallies over the weekend mark a turning point for the city. And we’re on crisis-watch in Rome, where Italian Prime Minister Giuseppe Conte is due to address the Senate and a no-confidence vote could bring down the coalition government.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-s

Wall Street gears up for more volatility after U.S. stocks close in the green but log their third negative week in a row, while the Trump administration seeks to calm recession fears, with top economic adviser Larry Kudlow saying he doesn’t see a major downturn on the horizon. In China, stocks surge following the PBOC’s announcement of business interest rate reforms. Investors also bet on fiscal stimulus out of Berlin as finance minister Olaf Scholz says Germany is ready to use the ‘full force’ of a €50bn stimulus package in the event of an economic crisis. And Hong Kong sees its 11th straight weekend of pro-democracy protests with a reported 1.7 million people turning out for a peaceful rally on Sunday.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 bounces back after its worst day of 2019 as Washington and Beijing soften their rhetoric in the trade war. Asian equities see green as fresh data shows that Japan has overtaken China in holding U.S. Treasuries. In Europe, euro zone bond yields sink to new lows after ECB board member Olli Rehn says the central bank is preparing a stimulus package for September. And the founder of the world’s largest hedge fund, Ray Dalio, tells CNBC there is a 40 per cent chance that the U.S. will fall into recession ahead of the 2020 presidential election.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow suffers its worst day of the year, plunging 800 point in its fourth worst point drop in history. Investors are spooked after the US 2-10 yield curve inverts, sparking concerns a recession is on the way. President Trump takes aim at Jerome Powell, slamming the Fed for growing fears of a US slowdown, while the 30-year treasury yield falls to a new record low. Furthermore, the US President links protests in Hong Kong with the China trade tensions, and suggests a personal meeting with President Xi Jinping over the political crisis. In Asia, stock join the global sell-off. Recession fears also roil Asian bond markets, with the yield on Japan’s 10-year JGB falling to its lowest level in 3 years.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Trump administration seems to be the first to blink in the trade war, delaying tariffs against key Chinese imports including laptops, cellphones and clothing. The move sends Asian equities into the green after a rally on Wall Street, led by Apple shares which jumped 4 percent in its best day since May. In Hong Kong, the city’s airport re-opens despite another night of protests and more clashes with police. In Italy, the senate shoots down deputy leader Matteo Salvini’s push for a swift no-confidence vote, dealing a blow to the Lega leader’s drive to force a snap election.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

In a volatile day for U.S. markets, the Dow drops nearly 400 points to close below 26,000. Global bond yields resume their decline sending a warning signal to investors of a possible recession. In Asia, the Hang Seng leads losses as Hong Kong protests add to the turmoil. Chief Executive Carrie Lam warns the city is on a path of no return as airport demonstrations extend into a fifth day causing airport shutdown. In Italy, the Italian senate is called back from their summer break to slate a no-confidence vote in the coalition government, as 5-star leader Luigi Di Maio accuses Lega's Matteo Salvini of "stabbing Italy in the back." And finally in Argentina, investment-friendly President Mauricio Macri experiences a re-election setback, sending Argentine assets into decline.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

After a rocky week for Wall Street, Asian equities start the week cautiously higher as Goldman Sachs warns the trade war is raising the prospect of a U.S. recession. Meanwhile, China sets its yuan fix at weaker than 7 for the third straight day. In Italy, deputy Prime Minister Matteo Salvini denies reports he wants to withdraw the country from the euro area as he intensifies his call for a snap election. In corporate news, Sandvik CEO Bjorn Rosengren will assume the top job at engineering giant ABB, taking over from acting CEO Peter Voser in March. And finally, as US President Trump struggles to seal a deal for a 20 member global coalition to protect maritime shipping lanes, we take you aboard aircraft carrier USS Abraham Lincoln as the fleet looks to defend the Strait of Hormuz.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The U.S. market recovery continues with stocks jumping and bond yields rebounding, as the S&P 500 sits in positive territory at the end of a choppy week of trade. The picture is far more mixed in Asia with Chinese food inflation rising and the PBOC setting a higher-than-expected yuan mid-point, despite its record low level. In Italy, the government is teetering on the edge as Matteo Salvini pulls the plug on the fragile coalition with Five Star and calls for fresh elections in the autumn. Prime minister Giuseppe Conte, struggling to contain his anger, demands that the interior minister explains his move to voters. And in corporate news, Uber shares plunge in after-hours trade with the ride-hailing giant posts its biggest loss ever - more than 5 billion dollars in the second quarter.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.