Squawk Box Europe Express

Alphabet sees its shares slide as YouTube ad revenue comes in soft. Tesla stock is also down as the EV maker notches its fourth earnings miss in a row. CEO Elon Musk, however, remains bullish about the company’s self-driving USP. Luxury giant LVMH misses topline quarterly forecasts as Chinese consumers pare back spending . The French group is the latest victim of a larger slowdown within the sector. In banking news, German lender Deutsche Bank posts a narrow Q2 beat on the topline, coming after its second quarter of double-digit growth in commissions and fee income. Spanish bank Santander hikes its FY revenue guidance following a 20 per cent increase in quarterly net profit. And in France, the euro group’s largest bank, BNP Paribas, tops expectations on strong quarterly results in its corporate and institutional banking units. We hear from CFO Lars Machenil who tells CNBC his bank’s guidance is not dependent on ECB rate cuts.    See Privacy Policy at https://art19.com/privacy and Californi

U.S. Vice-President Kamala Harris strengthens her position as the frontrunner for the Democratic nomination, gaining the backing of a majority of pledged delegates. U.S. stocks rally with mega-caps clawing back some recent losses ahead of key earnings today. CNBC learns that cloud security firm Wiz has spurned Google’s $23bn takeover bid and may instead focus on listing. SAP posts a 25 per cent jump in Q2 cloud revenue, bringing the firm’s backlog to $14.8bn. And in auto news, Porsche cuts its FY sales guidance due to faltering Chinese demand and possible impairment charges linked to supply shortages.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. President Joe Biden drops out of the 2024 race for the White House and endorses Vice-President Kamala Harris for the Democratic nomination. Harris gains some early backing since yesterday’s announcement but key Congressional figures and former President Barack Obama stop short of endorsing her candidacy. In China, the PBOC surprises markets by cutting rates, increasing support for the country’s flagging economy. In aviation news, Boeing forecasts the global passenger and freight fleet will double in the next 20 years. This, as near-term production and delivery delays dog the U.S. plane maker ahead of this year’s Farnborough Air Show.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street is split, with the Nasdaq recording its worst session since December 2022 while the rotation away from tech stocks continues, helping the Dow to close above the 41,000-point mark for the first time. President Biden pulls out of an event in Nevada after testing positive for Covid while at the RNC in Milwaukee, Ohio Senator JD Vance invokes the words of JFK during his formal acceptance of the GOP vice-presidential nomination. We are live in Frankfurt where it remains all but certain the ECB will keep rates steady, with the possibility of one more cut later this year. Swedish-Swiss robotics giant ABB posts record Q2 operational margins and hikes its FY guidance as net profit comes in at more than $1bn. We are also live at Blenheim Palace, Oxfordshire where new UK Prime Minister Keir Starmer is set to welcome European leaders at the EPC conference in a bid to reset relations between the UK and the Continent.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at ht

Semi-conductor earnings are in focus with ASML earnings due while shares in TSMC slump after GOP presidential nominee Donald Trump says he would demand Taiwan pays for American protection against China. The Dow rallies more than 700 points to close at a new record high on new optimism over Fed rate cuts. HSBC appoints Georges Elhedery as its new group CEO. He is due to take up the position in September. And Adidas notches a Q2 earnings beat and hikes its full-year guidance after strong sales of its retro trainer range.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Donald Trump selects Ohio senator JD Vance as his running mate for November’s presidential election, just two days after the weekend assassination attempt in Pennsylvania. U.S. President Joe Biden defends his mental acuity in an NBC interview while warning that the threat from his opponent is too serious to ignore. German clothing brand Hugo Boss slashes its sales forecast for the second time this year, adding to Burberry and Swatch’s warnings for the luxury sector. And the impasse deepens in France among the victorious far-left faction with talks over naming a new prime minister breaking down.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Former U.S. President Donald Trump survives an assassination attempt while speaking at a campaign rally in Butler, Pennsylvania ahead of his formal presidential nomination at the GOP convention in Milwaukee. President Joe Biden makes a televised address to the nation condemning the shooting, asking Americans to ‘cool down’ political rhetoric. In China, Q2 GDP falls short of expectations slowing to 4.7 per cent amid lingering consumer demand weakness. Google parent Alphabet is reportedly in advanced talks to swoop for cyber security firm Wiz for approximately $23bn, which would be its largest ever acquisition.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Biden remains defiant in the face of top Democrats’ calls to step down from the presidential nomination following his latest string of gaffes during last night’s NATO press conference. The S&P 500 and the Nasdaq are both down from recent record highs as the U.S. inflation print for June comes in as the weakest monthly reading in 4 years. Tesla shares nosedive following reports that its robo-taxi rollout has hit another delay due to prototype building. In Japan, the yen sees a sudden surge overnight fueling speculation an intervention by the BoJ could be imminent. The Nikkei 225 falls from record levels. And we are live at Apple’s central London store where the Vision Pro mixed reality headset goes on sale in more countries beyond the U.S. and Asia.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The S&P 500 records its longest streak in the green, closing above 5,600 for the first time ahead of today’s U.S. CPI data print. In Washington, NATO leaders are set to announce new aid measures for Ukraine while criticising China over its alleged support for Russia’s war in the country. Samsung unveils a range of new products at its Galaxy Unpacked event in Paris with upgraded A.I. models dominating its line-up. And actor George Clooney adds his voice to the growing chorus calling for President Joe Biden to step out of the electoral race. Former House Speaker Nancy Pelosi has warned that any decision to be taken by Biden must be quick.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Fed Chair Jerome Powell testifies on Capitol Hill, giving one of his strongest signals yet that a rate cut may be imminent. Powell said that holding rates too high for too long may jeopardise the health of the U.S. economy. As a result, the S&P 500 and Nasdaq hit new record highs but markets are down in Asia as China’s June inflation data disappoints. We are live in Washington D.C. where gathering NATO leaders have pledged a series of air defence systems to support Ukraine and mull what a potential second Trump presidency could mean for the future of the alliance. And in South Korea, Samsung is hit with an indefinite all-out strike by its 30,000-strong labour union which is demanding better wages and benefits following the company’s recent stellar sales and profits.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The French political impasse deepens as the leftist bloc insists it will head the next government. This, while President Emmanuel Macron rejects Prime Minister Gabriel Attal’s resignation. The S&P 500 and Nasdaq both close at record highs while in Asia, the Nikkei rallies by more than 2 per cent as investors anticipate Fed Chair Jerome Powell’s Congress testimony later this week. U.S. President Joe Biden has doubled down, insisting he will remain in the presidential race while donors and senior Democrats publicly express concerns over his mental acuity and general health. Markets are now pricing in a second term in office for former U.S. President Donald Trump. In energy news, crude dips as rigs in the Gulf of Mexico are impacted by Hurricane Beryl with widespread power cuts reported along the Texan coast.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

France’s left-wing coalition scores a shock victory in the country’s parliamentary elections, holding off Marine Le Pen’s Rassemblement National who finished third. The country now faces a hung parliament with no clear indication of who will lead the government. Prime Minister Gabriel Attal has said he will resign later today. We are live in Paris for the latest. The euro and bond futures both fall as investors begin to assess the repercussions of last night’s poll, concerned with higher deficits and spending. U.S. unemployment figures are down to 4 per cent for the first time in 3 years but last month’s jobs figure comes in stronger than expected.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Sir Keir Starmer’s Labour Party wins a landslide election in the UK, securing the largest majority for any political party since 1997. The Conservatives are on track to lose 218 seats - a historic low for the party. The Liberal Democrats claw back former Tory seats while Reform UK notch 15 per cent of the national vote. We are live outside the House of Commons and Downing Street for the latest. Sterling trade is cautious but the FTSE moves slightly higher as investors digest the results of the UK election.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The S&P 500 and the Nasdaq hit fresh records while the ADP report shows new jobs slowing for a third consecutive month. New polls indicate a hung parliament in France with the Rassemblement National falling just short of an absolute majority ahead of Sunday’s second round vote. Former U.S. president Donald Trump increases his lead over incumbent President Joe Biden as a growing number of senior Democrats urge him to withdraw from the race following last Thursday’s head-to-head debate. And here in the UK, millions of voters head to the ballot box for the country’s general election.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Federal Reserve Chair Jerome Powell hails the U.S. central bank’s work to rein in inflation but also echoes ECB President Christine Lagarde, telling CNBC he requires more data before moving to cut rates. Markets remain sanguine with the S&P 500 breaching the 5,500-point mark for the first time as investors take heart from Powell’s positive remarks. In autos news, Tesla shares are up after a Q2 delivery beat despite the total full-year figure coming in low. In France, parties form a republican front in a bid to quell a National Rally majority in this Sunday’s second-round parliamentary election. And in the UK, Prime Minister Rishi Sunak warns against a Labour super-majority ahead of tomorrow’s general election.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

We are live at the ECB’s annual forum in Sintra, Portugal, where ECB President Christine Lagarde plays down suggestions of a soft landing in the euro zone as price pressures linger. In the U.S., the Supreme Court historically rules that immunity extends to ex-presidents over official acts which would see a delay to former President Donald Trump’s Washington trial for attempting to overturn the results of the 2020 election. Wall Street begins July in the green with Treasury yields rising as investors mull the return of Trump to the White House. In France, the French leftist and centrist blocs face a deadline to merge against the Rassemblement National, urging third-placed candidates to withdraw. And in the UK, party leaders make their last-minute pitches to voters ahead of this Thursday’s general election.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Marine Le Pen’s Rassemblement National wins the first round of the French parliamentary election, gaining 34 per cent of the vote with President Macron’s centrist bloc coming third behind the left-wing New Popular Front coalition . We are live in Paris for the latest. Investors take stock of the result with the French-German 10-year bond spread widening to its farthest point since 2012. The UK election race enters its final stages this week with the opposition Labour Party poised to win a landslide after 14 years of Conservative rule. In the U.S. President Joe Biden is adamant he will continue as Democratic nominee, resisting calls to withdraw from the race following last Thursday’s car-crash debate performance. And in aviation news, Boeing scores a near-$5bn deal to supply Spirit AeroSystems with competitor Airbus set to receive compensation pay under the terms of the agreement.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-m

President Joe Biden begins the first presidential debate in Atlanta on the back foot, struggling to counter attacks from former President Donald Trump. In Brussels EU leaders renominate Ursula Von Der Leyen for a second term as European Commission President. Estonian PM Kaja Kallas and Portuguese PM Antonio Costa get the nod for foreign policy chief and EU council president respectively despite opposition from Italy and Hungary. The yen against the dollar is trading at its weakest level in almost 40 years as Japan names a new currency chief. And in retail news, Nike issues a large sales warning, with shares plunging 12 per cent in extended trade.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Prime Minister Rishi Sunak and Labour leader Sir Keir Starmer go head-to-head, trading tax accusations in the final televised debate ahead of next month’s UK general election. The yen has fallen to a new 38-year low against the greenback, triggering speculation the BoJ will intervene and raise interest rates in July. The Nasdaq is in the green, helped by Amazon breaching $2tn in market cap for the first time ever. Chip maker Micron sees revenues soar by 80 per cent but Q4 guidance fails to impress investors. Shares fall almost 8 per cent lower after yesterday’s close.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The leaders of France’s three main political blocs participate in a TV debate with Prime Minister Gabriel Attal and National Rally’s Jordan Bardella accusing one another over unrealistic budgetary plans. In Brussels, European Commission President Ursula Von Der Leyen looks set to win another term as negotiators have reportedly struck a deal ahead of the formal summit. Volkswagen pushes EV start-up Rivian shares 50 per cent higher in extended trade following its $5bn investment announcement in the firm. Chip maker Nvidia claws back recent losses to close yesterday’s session almost 7 per cent higher.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.