Squawk Box Europe Express

U.S. equity markets hit fresh highs and the S&P 500 crosses the 3,000 level after Federal Reserve Chairman Jerome Powell sets the stage for an ‘insurance’ cut later this month. President Trump launches a probe into France's proposed tax on tech firms, sparking concerns the move could lead to more tariffs between the U.S. and Europe. And oil prices hit their highest level in six weeks as producers in the Gulf Mexico cut their output ahead of what could be the first major storm of the hurricane season.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Waiting for the Fed. Equity markets trade cautiously as central bank chairman Jerome Powell prepares to begin his 2-day testimony on Capitol Hill. Trade talks are back on, with a ‘constructive’ phone call between Washington and Beijing breaking the U.S.-China stalemate. Chinese factory inflation falls flat for the month of June following almost three years of unbroken growth, raising fears of a manufacturing slowdown. And in corporate news, Airbus is set to leapfrog Boeing as the world’s largest plane maker as the U.S. firm sees deliveries slide by 37%.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

‘The extradition bill is dead’. Squawk Box analyses the impact of the scrapping of the controversial Hong Kong legislation following months of protests and civil unrest. Shares in Deutsche Bank see red as investors begin to question the bank’s dramatic overhaul, with 18,000 jobs set to go in a €7.4 bn shake-up. On Wall Street, Apple shares sink after Rosenblatt Securities downgrades the stock, citing a ‘fundamental deterioration’ in sales growth at the tech giant. And in Washington, President Trump launches a Twitter attack on the UK’s ambassador to the U.S. and UK Prime Minister Theresa May over leaked diplomatic cables critical of his administration.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Deutsche Bank announces a radical overhaul, cutting 18,000 jobs and exiting its global equities sales and trading business. The German lender’s CFO James Von Moltke tells CNBC that this round of restructuring will be the last. A strong U.S. jobs report prompts investors to dial back on hopes of a Federal Reserve rate cut. However, the Bank of France governor tells this channel that the ECB may move as early as this month. And we are live in Greece where we hear from newly elected prime minister Kyriakos Mitsotakis whose New Democracy has won a resounding victory ousting Alexis Tsipras and his Syriza party.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Samsung falls victim to U.S.-China trade tensions, warning second-quarter profits will halve after deliveries to the Chinese smartphone maker Huawei sink. Broader Asian equities stick to two-month highs while global bond yields hold near-record lows ahead of the release of U.S. non-farm payrolls data later today. Relations between Tehran and the West sour further following the seizure of an Iranian tanker suspected of Syrian sanctions violations by British forces off the coast of Gibraltar. And President Trump uses the 4th of July celebrations to highlight America’s military might, with tanks and aircraft featuring in a lavish parade in Washington D.C.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The global bond market rally accelerates. Squawk Box anchors discuss the moves in fixed income markets. The U.S. ten-year yield hits a 32-month low while euro zone bond rates fall to fresh record lows, amid expectations that ECB President nominee Christine Lagarde will maintain the central bank’s dovish stance. White House economics advisor Larry Kudlow has signalled that U.S.-China talks will resume ‘soon’ in a bid to resolve trade tensions. Washington prepares for a lavish multimillion-dollar military celebration to mark the 4th of July. The cost of restructuring Deutsche Bank could reportedly amount to €5 billion. And in Brussels, the European Union Commission has called off threats of disciplinary action against Rome after the Italian government took measures to trim its public debt.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Squawk Box anchors talk change at the top for the EU’s most important institutions. Christine Lagarde is nominated to become the next president of the ECB as EU leaders finally break the deadlock to agree on who will fill the the bloc’s executive positions. Oil prices fall despite an Opec+ deal to extend the supply cut. Secretary-General Mohammed Barkindo tells this channel that Russia is now an important and trusted ally of the cartel. Meanwhile, the S&P 500 posts its seventh record close of the year, but Asian equities fall as trade concerns and poor Chinese data weigh on prices. And in autos, Tesla smashes Q2 production and delivery records sending its shares 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.

The global rally loses steam after the S&P 500 closes at a fresh record high, following President Trump’s confirmation that new trade talks with China have already started. Calm returns to Hong Kong following violent overnight protests with demonstrators storming and vandalising the Legislative Council building. We are live on site as the clean-up operation begins. We’re also at the World Economic Forum in Dalian, China, where Premier Li acknowledges global and domestic economic risks and says Beijing will push forward with opening up its financial and manufacturing sectors. Oil prices slip overnight despite yesterday’s decision by Opec to extend supply cuts for a further 9 months. Saudi Arabia’s energy minister Khalid Al-Falih says demand is already picking up.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese stocks and U.S. futures surge after Presidents Trump and Xi agree on a trade truce at the G20 summit in Osaka, calling a time-out on any fresh tariffs. President Trump also makes a historic visit crossing over the DMZ to meet North Korean leader Kim Jong-Un. We are live in Japan and at the World Economic Forum meeting in China with reactions from policymakers. Iran backs the Saudi-Russian plan to extend existing oil supply cuts, paving the way for a deal at the OPEC meeting in Vienna. CNBC sources confirm reports Deutsche Bank is planning to cut up to 20,000 jobs in a major overhaul.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

CNBC confirms Chinese President Xi Jinping is ready to offer the U.S. a set of demands to conclude a trade deal which would feature lifting a ban on Huawei, while President Trump emphasises the importance of security in 5G. We are live at the G20 summit in Osaka, Japan, where bilateral meetings between the world’s top leaders continue. The enthusiasm for a trade deal, however, isn’t reflected in Asian stocks with markets edging lower and Morgan Stanley CEO James Gorman telling this channel exclusively that he believes U.S.-China trade talks may drag on for up to a decade.  Credit Suisse only gets a conditional pass in the Fed’s latest bank stress tests, sending shares lower in after-hours on Wall Street, but Deutsche Bank rallies as it makes it through. And in a second night of televised debates, ten more Democrat presidential candidates hit out at Donald Trump - and each other.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell

Asian shares rise on a report that the U.S. and China have struck a trade truce ahead of a meeting between Presidents Trump and Xi at the G20 in Osaka, Japan this weekend. President Trump also boosts hope of a possible trade deal as leaders make their way to the summit. In Miami, Democrat presidential candidates face off in the first round of debates with healthcare, immigration and Trump’s economic policies the predominant topics. In corporate news, there are rumours that the EU may give Vodafone the go-ahead with its $22bn takeover of Liberty Global, while activist investor Elliott Advisors confirms a holding in German chemicals giant Bayer. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asian stocks follow Wall Street into the red after U.S. Federal Reserve chairman Jerome Powell plays down expectations of an interest rate cut, saying monetary policy should not overreact to any individual data point or short-term swing in sentiment. Gold also climbs down from a six-year high. President Trump threatens Iran with "obliteration" after Tehran's president questions the mental competence of the U.S. leader. We are live in Manama, Bahrain, where President Trump’s son-in-law Jared Kushner is holding a Middle East peace workshop. And U.S. chipmakers appear to side-step Washington's ban on Huawei, as the administration reportedly aims to restart trade negotiations with China after Presidents Trump and Xi meet at the G20.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Squawk Box anchors discuss the new wave of sanctions against Iran signed by President Trump, this time directly targeting the nation’s supreme leader, Ayatollah Ali Khamenei. We are live in Manama, Bahrain, where Israel and Palestine are sitting out a U.S.-sponsored peace summit with a $50bn economic package on the table. On the Chinese trade talks, President Trump signals he would welcome any outcome as negotiators from Washington and Beijing prepare to meet later this week. And across Asia, markets are down after a U.S. judge finds three Chinese banks in contempt for failing to comply with an investigation into North Korean sanctions violations.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. prepares to unveil additional sanctions against Iran, ramping up tensions between the two nations. President Trump says he is not looking for war, while the U.S. envoy to Iran tells CNBC exclusively that the administration has not discounted further negotiations. On trade, China urges Washington to be open to compromise in upcoming G20 talks with Beijing as further Chinese tech firms are added to the U.S. blacklist. Turkey's opposition party wins again in Istanbul. The re-run for the post of mayor is a major blow to the ruling AK Party and President Erdogan. And in corporate news, Daimler downgrades its 2019 profit forecasts as higher diesel provisions weigh on its outlook.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Squawk Box anchors discuss the latest escalation in tensions between Washington and Tehran, which sent oil prices sharply higher.President Trump reportedly approved military strikes against Iran but then backed down, according to the New York Times and the Washington Post. The reports, which both cite multiple officials, say Trump approved the moves in retaliation for Iran shooting down a U.S. drone over the Strait of Hormuz. Top EU diplomat Federica Mogherini has told CNBC Europe will facilitate talks between the two parties to avoid a military escalation in the Middle East. On the equity market front, the S&P 500 closed at a fresh record high on dovish language from central banks around the world. AND In the UK, Boris Johnson and Jeremy Hunt will now face off for Britain's top job, as the final two candidates are confirmed in the race to succeed Theresa May as Prime Minister.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my

Squawk Box anchors discuss the U.S. Federal Reserve's dovish interest rate hold for June but the central bank signals more cuts could be on the way, as Chairman Jerome Powell flags concerns about the health of the U.S. economy. The decision boosts U.S. equity markets while the 10-year treasury bill slides below 2 per cent for the first time in three years. Renewed positivity regarding a U.S.-China trade deal boosts Chinese markets and we speak exclusively to Huawei CEO Ren Zhengfei who has shrugged off concerns of a U.S. ban on his company. We are live in front of the Bank of England, as the BOE is also widely expected to hold rates later today while reaffirming the potential for a hike in the coming months. And in Brussels, European Council President Donald Tusk says he is hopeful of an imminent summit decision on who will fill the bloc’s leadership positions.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-i

Squawk Box anchors discuss the global stock market rally amid optimism for a U.S.-China trade deal after U.S. President Donald Trump confirms he'll meet with Xi Jinping at the G20 summit. Signals from the ECB that it is considering further easing also boosts equities and sends bond yields to near two-year lows, while investors await a decision from the Fed today. President Trump takes aim at central bankers, saying he could consider demoting Fed Chair Jerome Powell while also blasting Mario Draghi's stimulus plans. Elsewhere, the remaining contenders to become the next UK Prime Minister clash in a TV debate, and Facebook’s cryptocurrency gets a frosty response from regulators.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Central banks take centre stage on Squawk Box, as ECB President Mario Draghi prepares to give his keynote speech at the ECB forum in Sintra, and the Federal Reserve begins its two-day meeting amid market speculation over whether the FOMC will consider cutting interest rates. Former ECB President Jean-Claude Trichet tells CNBC that the world’s two largest central banks should not be solely relied upon to stimulate growth. The U.S. Defence department announces a deployment of an additional 1,000 troops to the Gulf region, as tensions with Iran continue to rise following the recent tanker explosions. Chinese President Xi Jinping is due to travel to North Korea on his first-ever state visit to the country ahead of a possible meeting with President Trump at the G20 summit in Japan. And at the Paris Air Show, safety concerns surrounding the Boeing 737 Max continue to dog the U.S. plane maker as it fails to land a single order on the first day of the event.  See Privacy Policy at https://art19.com/privacy

Squawk Box anchors discuss the latest protests in Hong Kong as demonstrators take to the streets again, despite the city’s Legislative Council backing down and suspending the controversial extradition bill. We are live from the territory. Asian markets are mixed after chip-makers lead the way lower in the U.S. session on Friday and investors look ahead to the U.S. Federal Reserve’s decision on Wednesday. Deutsche Bank is reportedly preparing to overhaul its trading operations with plans for a ‘bad’ bank’ for toxic assets. Saudi Arabia's crown prince has joined the U.S. in accusing Iran of carrying out attacks on two tankers in the Gulf of Oman last week. And, we are live at the Paris Air Show, where Boeing is the central focus amid on-going safety concerns over the plane-maker's 737 Max jets.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Squawk Box anchors discuss the oil price rally following an attack on two tankers in the Gulf of Oman. The U.S. State Department points the finger at Iran, but Tehran denies the accusations. Asian equities are mixed, with more protests over a controversial extradition bill in Hong Kong planned over the weekend. In Luxembourg, European finance ministers meet with the soaring Italian debt under the microscope. And in London, the race to replace Theresa May as Prime Minister and leader of the Conservative Party has been whittled down from ten to seven, with Boris Johnson winning a commanding first-round victory.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.