Squawk Box Europe Express

US CPI expectations ease according to a key Fed survey ahead of today's August print, with inflation expected to slow to eight percent. Swiss lender UBS hikes its annual dividend by ten percent and announces share buybacks will top five billion dollars this year, as fellow bank Goldman Sachs plans to cut hundreds of jobs this month according to a CNBC source, looking to rein in expenses amid a collapse in deals volume. Twitter shareholders reportedly vote in favour of Elon Musk's 44 billion dollar takeover, as the billionaire tries to force his way out of the deal.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Queen Elizabeth's coffin lies in rest in Edinburgh, after a six-hour journey from Balmoral Castle, with her funeral set to take place on Monday September 19. King Charles III is formally proclaimed sovereign, with the new monarch set to start a tour of the UK in Scotland, for a service marking the passing of his mother. Ukrainian forces reclaim large stretches of territory in the northeast of the country, as Russia makes a hasty retreat and launches a barrage of missiles into Kharkiv. Crude prices slip amid warnings China's fuel demands could contract for the first time since 2002 as Beijing continues to impose a zero-covid policy approach to covid cases.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The UK begins a period of mourning after Her Majesty Queen Elizabeth the Second dies aged 96, ending the reign of the world's longest serving monarch. His Majesty, King Charles the Third ascends to the throne, and says the loss of his mother will be felt deeply. Condolences pour in from around the globe as world leaders praise her dignity and dedication, calling her passing a great loss to the international community. In other news, the ECB hikes rates by a record 75 basis points, to the highest level since 2011, pushing eurozone yields higher as Christine Lagarde pledges to keep up the inflation fight. US Federal Reserve Chair Jerome Powell echoes Christine Lagarde's comments, vowing to continue his battle with inflation stateside.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

ECB policy makers are expected to hike by a record-breaking 75bps to combat inflation amid sky-rocketing utility prices. U.S. equities are in the green and crude prices bounce back following the Fed’s Lael Brainard insisting the central bank must hold its nerve in containing inflation. The dollar is at a 24-year high against the yen. New UK leader Liz Truss attends her first Prime Minister’s Questions as sterling sinks to its lowest level since 1985. The EU is proposing a price cap on Russian gas in order to mitigate the energy crisis facing the bloc.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street closes in the red yet again. The Nasdaq posts its longest daily losing streak since 2016. Richmond Federal Reserve President Thomas Barkin says that rates must stay high until inflation is contained. New UK Prime Minister Liz Truss is reportedly planning a £100bn package to help millions of households cut sky-rocketing energy bills this winter. Gazprom has signed a deal to permit Chinese customers pay for its gas in yuan or roubles in a bid to move away from the dollar. Goldman Sachs says that European household energy costs could soar by $2tn by next year. We hear from Uniper CEO Klaus-Dieter Maubach who says “the worst is still to come” for European gas consumers. And in China, August exports numbers slow with Covid restrictions, inflation and energy supply problems all weighing heavily.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Gazprom reportedly claims Siemens Energy must carry out maintenance work on the Nord Stream 1 pipeline before gas supply to Europe can resume. Brussels is suggesting an EU-wide gas price cap. Enagas CEO Arturo Gonzalo tells CNBC that Moscow’s behaviour will only serve to strengthen Europe’s resolve to stop dependence on Russian hydrocarbons. Liz Truss becomes the next UK prime minister and is due to receive the keys to 10 Downing Street later today. In Australia, the RBA raises interest rates by 50bps in a bid to rein in price pressures. And in energy news, Opec+ announces a ‘miniscule’ cut of 100,000bpd from October.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Gazprom indefinitely cuts gas supplies to Europe via the Nord Stream 1 pipeline. We hear from EU Commissioner Paolo Gentiloni at the Ambrosetti Forum who says that the Kremlin is weaponising energy but insists the West will not flinch. Sweden, Finland and Germany have scrambled to announce energy support packages, warning of a Lehman Bros-moment for the sector. In the U.S., equities are in the red for the third straight week despite solid August jobs numbers. Republican senator Lindsey Graham tells CNBC that Donald Trump must focus on policy should he decide to run for President in 2024. In Italy, Giorgia Meloni’s Fratelli d’Italia party leads polls just weeks before the general election. We speak to Democratic Party leader Enrico Letta who believes his party offers a viable alternative vision for the country. We are also live in Downing Street ahead of the Conservative Party leadership contest result.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do

We are live on the shores of Lake Como in Italy for the Ambrosetti Forum as Italy announces a multi-billion euro inflation-busting emergency programme. This as the 10-year yield hit 4 per cent for the first time since June. However, Ambrosetti CEO Valerio De Molli tells CNBC that the country is not about to slip into another debt crisis. Investors anticipate the U.S. August jobs report with the Dow breaking a four-day losing streak. Russia vows to stop selling crude to nations supporting an oil price cap. Brent and WTI gain in early trade. And in food and beverage news, Starbucks unveils Laxman Narasimhan as its new CEO in a bid to impose the coffee chain giant’s Reinvention plan.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. equities are set to start the new month in the red following their worst monthly performance in seven years. Treasury yields continue to rise as Cleveland Fed President Loretta Mester pours cold water on hopes inflation has been tamed. In Covid-hit China, factory activity contracts for the first time in August. Growth concerns weigh on crude prices which have suffered their worst losing streak since April 2020. Shares in Nvidia and AMD slump after Washington curbs exports to Beijing. And in the UK, sterling posts its steepest monthly decline since Brexit as Conservative Party leadership hustings draw to a close.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. equities continue their slide in the red with the S&P 500 dipping below its 50-day moving average. Richmond Fed President Thomas Barkin, however, says a recession is not inevitable. We hear from French Finance Minister Bruno Le Maire who says that he backs emergency measures to rein in rampant energy prices throughout Europe. Russia cites maintenance issues as it turns off gas supplies into Europe via the Nord Stream 1 pipeline, which had already been functioning at just 20 per cent capacity. In China, factory activity falls yet again in August, hamstrung by Covid outbreaks and power outages. World leaders pay tribute to the last Soviet leader, Mikhail Gorbachev, who has died aged 91.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asian markets stage a rebound following more declines from U.S. markets overnight. Treasury yields also climb with the 2-year bill hitting its highest level since 2007 following Federal Reserve Chairman Jerome Powell’s Jackson Hole comments last week. ECB chief economist Philip Lane has said he backs incremental rate hikes, warning that bigger increases could have adverse effects on the bloc. The EU has set out emergency measures to decouple electricity and gas in a bid to rein in ‘skyrocketing’ energy costs. In China, tech firms continue their slump, logging their worst earnings quarter ever. There is one outlier – e-retailer Pinduoduo – which posts better=than-expected Q2 numbers.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow drops 1,000 points following Federal Reserve Chairman Jerome Powell’s Jackson Hole speech. Powell sparked a global sell-off after warning of increased pain to come in the struggle against rampant inflation. The ECB follows suit, predicting further sacrifices to curb price pressures on this side of the Atlantic. In China, July’s industrial profits slump on the back of continuing Covid restrictions and power outages hit factory performance. Regulators have called on banks to provide more support. And in crypto news, Bitcoin is on course for its fifth day of declines, dipping below the $20k mark amid concerns about the Fed’s rate hike trajectory.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow finishes in the green with U.S. markets eagerly anticipating Federal Reserve Chairman Jerome Powell’s Jackson Hole speech later today. Fed officials speaking to CNBC at the Wyoming symposium have reiterated the need to keep raising interest rates to bring down U.S. inflation. President Biden signs an executive order to boost chip production. At a mid-term elections rally in Maryland he called Trump philosophy ‘semi-fascist’. In Zaporizhzhia, Ukraine, back-up systems have sparked into action following shelling at Europe’s largest nuclear plant, which disconnected it from the country’s grid. British energy regulator Ofgem prepares to lift the price cap, causing bills to soar for millions of households from October.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. markets are in the green after three negative sessions with investors seeking further Fed clarity ahead of the start of the Jackson Hole Symposium today. President Biden fulfills his 2020 campaign promise of student loan forgiveness one week before a moratorium on payments and interest. The move will affect millions of graduates with $10,000 debts. Tesla undergoes its second stock split in 2 years on a 3-for-1 basis. In Germany, Economy and Climate Protection Minister Robert Habeck announces energy-saving measures designed to save 2 per cent of gas consumption this winter.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. indices are down for their third straight session following further hawkish comments from the Federal Reserve. Investors’ expectations that Chairman Jerome Powell would move away from the central bank’s tightening progamme have been dampened. In energy news, crude is also down on anticipation that any Opec+ output cuts could coincide with the return of Iranian oil to markets as part of a renewed nuclear deal. Chinese e-commerce giant feels the strain of continuing Covid restrictions in the country, posting a record-breaking slow quarter. And the U.S. is set to unveil a $3bn security package for Ukraine which is today marking six months since Moscow’s invasion of its territory.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. markets post their worst session in June with the 10-year Treasury yield hitting 3 per cent. Investors are anticipating Fed rate setters will double-down on their hawkish positions at the Jackson Hole Symposium later this week. In forex news, the dollar is up while the euro plunges to a two-decade low. German Chancellor Olaf Scholz visits Canada to seek alternative energy sources following the Russia’s invasion of Ukraine. In China, the PBOC is set to off $29bn worth of special loans to property developers in order to stabilise a worsening housing crisis. And in retail news, Adidas announces the surprise departure of CEO Kasper Rørsted.    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 breaks a 4-week rally and Treasury yields rise ahead of the Jackson Hole meeting of central bankers this week. Beijing cuts its base lending rate in a bid to revive its faltering economy amid extended Covid restrictions and a property sector crisis. Russia is set to undertake a further 3 days of ‘planned maintenance’, halting natural gas deliveries to Europe. And in entertainment news, Cineworld is reportedly to file for bankruptcy, citing a lack of blockbuster movies.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. markets look to attempt to revive their recent rally. The S&P 500 is on track to end its fifth straight week in the green. St. Louis Federal Reserve President James Bullard has repeated his call for a further 75bps hike in September. Home goods retailer Bed, Bath & Beyond sees shares nosedive after billionaire investor Ryan Cohen withdraws his entire stake in the company. Also in the U.S., Kohl’s beats expectations but shares fall on the news that the department store chain has cut its guidance as middle income consumers feel the inflation pinch. Greece prepares to formally exit Brussels’ ‘enhanced’ fiscal surveillance programme to mark the end of its debt crisis.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow’s five-day winning streak ends and Treasury yields grow as the Federal Reserve admits its aggressive tightening policy has been risky and that inflation still shows no signs of receding. We hear from the new Opec Secretary General Hathaim Al-Ghais who says Chinese consumption fears are exaggerated and that a return to pre-Covid demand depends on jet fuel recovery. In the U.S. Target misses Q2 expectations and sees profits plunge by 90 per cent despite discounts on clothing and electronics.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

It’s a fifth straight day of gains for the Dow since May. Retail stocks have been particularly resilient. Walmart ups its full-year guidance after beating both Q2 revenue and earnings forecasts. Shares are up by 5 per cent for the retail giant. CEO Doug McMillon remains cautious, telling this channel that inflation is hurting U.S. consumers, forcing them to adapt their shopping habits. In China, an extended heatwave has prompted authorities to shut down factories in southern provinces for six days to save electricity. And in energy news, crude prices recover and there are signs the oil market is tightening following a drop in U.S. stockpiles.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.