Squawk Box Europe Express

Squawk Box anchors discuss the economic battle lines on the trade front, after President Trump describes the atmosphere between Washington and Beijing as “testy”. We cross live to Hong Kong where government offices stay closed after mass protests against a controversial extradition bill turned violent. Asian equities move lower following back-to-back losses on Wall Street, while the oil price hovers around a 5-month low. We are live in Luxembourg where euro zone finance ministers consider the European Commission’s disciplinary proposals against Italy over its debt issues. And in the UK, Boris Johnson has launched his campaign to replace Theresa May as Prime Minister and leader of the Conservative Party.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 on-going political crisis in Hong Kong where the Legislative Council has postponed debate over a controversial extradition bill in the face of mass street protests. China reports slowing factory inflation, however, consumer inflation is at its highest level for 15 months with food prices rocketing. In the U.S., the Dow ends a six-day winning streak, while President Trump’s top chief economic advisor Larry Kudlow tells CNBC that the U.S. will still maintain 3 per cent growth with or without a trade deal with China. And, Goldman Sachs CEO David Solomon fires off a warning to Trump, telling this channel that investors are concerned the President is using tariffs for his broader agenda. Among a number of M&A deals making the headlines, private equity giant KKR launches a takeover bid for German media company Axel Springer.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 rally in Chinese stocks after another day of gains on Wall Street fuelled by optimism of a Fed rate cut and the U.S.-Mexico deal. However, President Trump keeps the threat of further tariffs hanging over Beijing should President Xi fail to attend the G20 in Osaka later this month. He also dangles the prospect of including smartphone giant Huawei in the trade negotiations. Meanwhile in London, the final ten candidates to take control of the Conservative Party and replace Theresa May as UK prime minister have been confirmed ahead of this Thursday’s first-round vote. In M&A news, Dutch lender ING reportedly u-turns on a potential merger with Germany’s Commerzbank. Plus, we’re live in Shanghai at the Consumer Electronics Show for the latest in Chinese tech.  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 how the U.S.-China trade war has played out at the G20 finance minister meeting in Fukuoka, Japan, where U.S. Treasury Secretary Steven Mnuchin tells CNBC exclusively that President Trump is readying himself to make the next move after he meets President Xi later in June. He also says Trump will insist on keeping the threat of more tariffs on the table. U.S. futures have risen after President Trump decided not to slap tariffs on Mexico after reaching a deal on illegal immigration enforcement. Chinese equities are also trading firmly in the green after China’s trade surplus came in higher than expected. In M&A news, United Technologies and Raytheon have teamed up in an all-stock tie-up to create the second-largest U.S. defence company, while French finance minister Bruno Le Maire tells CNBC that his government’s priority is to strengthen Renault’s alliance with Nissan, following the collapsed merger with FCA.  See Privacy Policy at https://art19.com/privacy and Californ

Squawk Box anchors discuss the fourth-straight day of gains for the Dow, prompted by signs of progress in trade talks between the U.S. and Mexico ahead of Monday’s tariff deadline. We’re awaiting the U.S. jobs report as the ECB joins other central banks with pushing out a rate hike amid warnings of a global uncertainty. We are live in front of Downing Street, as Theresa May prepares to step down as Prime Minister and leader of the Conservative Party, with the race to choose her successor set to begin next week. French pharmaceutical company Sanofi announces a new CEO, appointing Novartis executive Paul Hudson to the job from September. In Germany, Deutsche Bank’s investment arm head is under pressure as prosecutors launch a tax investigation at the lender. And we’re at the St Petersburg International Economic Forum, where Russia and China have inked $20bn worth of business deals in a show of unity to Washington.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/

Squawk Box anchors discuss Fiat Chrysler upending its $33 bn mega-merger for French carmaker Renault, blaming political resistance for stalling the deal talks. Stateside, major indices rally on rising hopes of a Fed rate cut, but gains are capped in Asia after U.S. and Mexican trade negotiators fail to make progress in tariff talks. President Trump heads to Ireland, meeting with Irish Taoiseach Leo Varadkar to talk Brexit and Huawei's proposed 5G rollout. We follow him to Normandy for the 75th D-Day anniversary commemorations. And, we are live in St Petersburg where Chinese President Xi Jinping hails his relationship with ‘best and bosom friend’ President Putin while striking a Russian 5G deal between Huawei and MTS.  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 stock market rally in Asia and the U.S. with Wall Street recording its second-best day of the year. The strong performance comes after Federal Reserve Chairman Jerome Powell says the central bank is ready to ease policy amid rising trade tensions. Fed Vice-Chair Richard Clarida has told CNBC exclusively that he and his fellow policymakers will put in place policies to ensure the U.S. economy remains in a good place. Meanwhile, President Trump continues his state visit to the U.K., playing down differences between Washington and London over Huawei’s 5G rollout and promising a ‘phenomenal’ U.S.-U.K. trade deal once Brexit is achieved. He has also indicated he will forge ahead with slapping tariffs on Mexican goods despite opposition to the move from within his own party. And in Rome, joint deputy prime ministers Matteo Salvini and Luigi Di Maio agree to bury the hatchet and ease tensions to cooperate in the interests of political stability.   See Privacy Policy

Squawk Box anchors discuss the slump in U.S. tech stocks on the back of concerns over a potential anti-trust investigation into whether the biggest names in Silicon Valley have been abusing their market dominance. President Trump’s historic state visit to the UK turns from pomp to politics. The Queen rolls out the red carpet in a lavish state banquet for President, but demonstrators prepare to stage a massive protest on the streets of London. In central bank news, the RBA slashes rates to a record low of 1.25%, while US yields fall again as St Louis Federal Reserve President James Bullard says a rate cut "may be warranted soon". And in Italy, Prime Minister Giuseppe Conte threatens to resign in a bid to quell the political bickering between coalition partners Five Star and Lega.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 how trade tensions have helped wipe $2 trillion from global stocks during May, as Beijing blames Washington for the collapse in negotiations, saying the White House’s hardline stance will not resolve the dispute. President Trump kicks off his 3-day state visit to Britain with an opening salvo on Brexit, backing a no-deal departure and endorsing Boris Johnson as Prime Minister. He also talks of a potential U.K. – U.S. trade deal. And in Germany, Angela Merkel's grand coalition suffers a blow with the resignation of SPD leader Andrea Nahles, following her party’s European election drubbing last week.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 President Trump’s latest trade confrontation. This time he targets Mexico in a bid to quell the flow of illegal immigration across the southern border. The Mexican peso and U.S. futures slump off the back of the announcement. Manufacturing activity in China falls more than expected in May amid Beijing’s trade dispute with Washington. Across the Pacific, Federal Reserve vice-chairman Richard Clarida signals the central bank is open to rate cuts, should the economy weaken. And ride-hailing firm Uber reports a $1bn loss in its first quarterly market report since its IPO but shares rise on the data which is in line with expectations.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 recession concerns amid the deepening inversion of US Treasury yields, with the gap between the 3-month and 10-year rates at their widest since the financial crisis. The Dow slumps 200 points as Beijing escalates trade tensions, warning Washington of its ability to retaliate to hiked U.S. tariffs. We speak to ECB Vice-President Luis De Guindos about the central bank’s forecasts and looming troubles in Italy. And Nissan’s CEO gives cautious backing to news of the FCA-Renault merger with questions over the Japanese carmaker’s role in the tie-up remaining unanswered.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 warning signals in the bond market, as rates fall across the globe, with the yield on the 10-year treasury falling to a 19-month low. Stocks in Asia follow Wall Street lower amid fears the move in yields could be signalling an economic slowdown. Beijing hints it could withhold exports of rare earth minerals in its trade war with Washington but the U.S. Treasury stops just short of labelling China a currency manipulator despite voicing ‘significant concerns’ over certain practices. Also in China, telecoms giant Huawei’s chief legal officer tells CNBC that the U.S. move to blacklist the company is risky and has filed a motion to deem U.S. security law unconstitutional. And in Brussels, French President Emmanuel Macron and German Chancellor Angela Merkel find themselves at odds over who should become the next European Commission president as the bloc seeks to pick candidates for the top job by next month’s summit.See Privacy Policy at https://art19.com/privacy and Ca

Squawk Box anchors discuss the upcoming race to fill the EU’s top positions, such as the Commission presidency, following the recent parliamentary elections. This could end up pitting France against Germany over the choice of president. Brussels is reportedly planning to take punitive action against Rome over Italy’s rising debt level but a defiant Matteo Salvini says that his Lega party’s strong EU electoral performance now gives it a mandate to change the bloc’s budgetary rules. Japan claims that it has not yet reached a trade deal with the U.S., as President Trump completes a four-day state visit to the country. And, reports suggest online retail giant Alibaba is considering a secondary Hong Kong listing valued up to $20bn following its first IPO in the U.S back in 2014.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 results of the European parliamentary elections with the centre bloc suffering a big blow from wins for Liberal, Euro-sceptic and Green parties. The euro, however, manages to parry the populist surge seen in the UK, France and Italy. Italian deputy prime minister and Lega leader Matteo Salvini hails the results, saying that Europe is changing. We are live in Westminster, Bremen and Turin with full analysis and a breakdown of the results. Meanwhile, U.S. president Donald Trump presses Japanese prime minister Shinzo Abe on the trade imbalance between the two nations during a four-day state visit. And Italo-American carmaker Fiat Chrysler and French counterpart Renault announce a mega-merger to create the world’s third biggest auto manufacturer.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 latest sell-off in U.S. stocks amid the ongoing fears about the US-China trade war, with the Dow braced for its fifth weekly drop and its longest losing streak for 8 years. The yield on the U.S. 10-year Treasury also plunges to 2017 lows amid the risk-off sentiment and oil dips nearly 6 per cent before clawing back losses. Meanwhile, President Trump suggests Huawei could be included in an eventual trade agreement despite branding the Chinese smartphone giant as ‘dangerous’. Secretary of State Mike Pompeo tells CNBC the tech giant is lying about its ties to the Chinese government. Deutsche Bank chairman Paul Achleitner survives calls to oust him as the troubled German lender warns of cutbacks during its annual shareholder meeting. And we are live in Westminster where word on the street is that UK Prime Minister Theresa May could be ready to tender her resignation amid a cabinet backlash over her latest Brexit deal proposal.See Privacy Policy at https://art19.com/privacy and Calif

Squawk Box anchors discuss the on-going calls for UK Prime Minister Theresa May’s resignation as Commons leader Andrea Leadsom tenders her resignation from the cabinet over May’s new Brexit deal. We have reaction from Westminster. In the U.S., the Federal Reserve minutes reveal that rates will remain steady for the foreseeable future as inflationary pressures have subsided. CNBC learns from a top executive at Huawei that the Chinese telecom giant could be ready to launch its own operating system this year should it be barred from using Google and Microsoft’s platforms. And, U.S. chipmaker Qualcomm’s stock dives after a U.S. court rules that it violated anti-trust law by illegally suppressing competition.  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 UK Prime Minister Theresa May’s last-ditch effort to get her Brexit deal through the House of Commons, offering lawmakers a variety of concessions, including the possibility of a second referendum. In the US, Wall Street bounces back after Washington offers Huawei a temporary reprieve, easing its restrictions as the Chinese smartphone maker launches new products in Europe. Chinese President Xi Jinping calls for a ‘New Long March’ amid on-going trade tensions with the US but also offers the prospect of a fresh round of negotiations. And, we are live in Westminster, Brussels and Bari ahead of the European Parliament elections. We hear from Italy deputy prime minister Matteo Salvini who brushes off suggestions his Lega party’s election campaign may have hurt his coalition government with the Five Star Movement.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 Washington's reprieve for Huawei, as the U.S. government allows the Chinese smartphone maker to keep buying U.S. goods to maintain current networks and software for the next three months. Chip-makers and Asian equity markets have rebounded on the news, as it raises hopes of easing trade tensions between Beijing and Washington. U.S. Federal Reserve Chairman Jerome Powell has warned that business debt is on the rise but says the broader financial system is robust enough to weather the challenge. Speaking to CNBC exclusively, Atlanta Federal Reserve President Raphael Bostic says a rate hike is unlikely in the autumn. Staying in the U.S., the T-Mobile-Sprint merger gets the thumbs-up from the communications regulator but it now goes up before the DOJ. And, Silvia Amaro reports from Brussels, as Europe prepares to head to the polls in parliamentary elections in two days' time.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/priv

Squawk Box anchors discuss the overnight jump in oil prices following Opec and its allies’ joint decision to continue with further output cuts this year. Russian energy minister Alexander Novak tells CNBC the world’s top energy producers will continue to cooperate. President Trump says any conflict would be the “official end” of Iran, while Saudi Arabian oil minister Khalid Al-Falih warns the kingdom’s oil infrastructure is under threat from sabotage. Meanwhile, Huawei suppliers’ shares fall sharply following reports Google will restrict its business with the Chinese tech company, by stopping to supply the smartphone maker with key services. In Australia, equity markets soar to an 11-year high following incumbent’s Scott Morrison’s surprise election victory. And, Ryanair’s chief financial officer tells the team pricing will remain soft as the airline posts its weakest annual profit in 4 years.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#d

Squawk Box anchors discuss the wild week in stock markets as the Dow looks on track to post its first 4-week losing streak since 2016. US chip stocks fall following Washington’s blacklisting of Huawei. Beijing, however, remains defiant, saying it will emerge stronger from the trade war. EU finance ministers weigh in on the current escalating US-China trade tensions, telling CNBC it is important not to increase barriers. Meanwhile, Turkey loses its preferential trade treatment by the US but sees tariffs on its steel exports halved. Tech giant Sony’s share price has soared more than 10% following its announcement that it is launching a ¥200BN share buyback scheme as well as signing a strategic partnership with Microsoft. And Amazon leads the latest funding round in U.K. food delivery company Deliveroo.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.