Squawk Box Europe Express

The Dow swings from an 800-point loss back into the green before sinking into the red once more. Hayman Capital Management’s Kyle Bass tells CNBC that the Fed is a tinder box for markets, ahead of today’s crucial decision where it’s expected to signal the first rate hike in more than three years. U.S. President Joe Biden reiterates warnings to Russia against invading Ukraine, saying that any such move would “change the world”. Microsoft delivers a Q4 beat on the top and bottom lines, with a strong outlook, but shares have suffered in the recent tech sell-off – on course for its worst month in more than a decade. 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 ride a rollercoaster session on Monday – making their biggest intraday comeback since the GFC - with the Dow recovering more than 1,000 points. Asian equities fail to follow suit, with the Nikkei slumping to a two-year low. Credit Suisse warns fourth-quarter profit will be negatively impacted by litigation costs of around CHF500m with the lender saying it now only expects to roughly break-even. Moscow says the U.S. and NATO are ramping up tensions over Ukraine as President Biden places 8,500 troops on high alert and NATO sends warships and jets to the region. And in Italy an impasse over the presidential vote looms after more than half of lawmakers’ ballots come back blank in the first round.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 both post their worst week since the start of the pandemic, with markets skittish ahead of this week’s Federal Reserve meeting. We hear from IMF managing director Kristalina Georgieva who says central bank clarity is vital for global economic recovery. Georgieva spoke to us during a Davos Agenda panel on the global economic outlook, which also featured the ECB's Christine Lagarde, the BOJ's Haruhiko Kuroda, as well as Brazil's Economy Minister and Indonesia's Finance Minister. In Italy, former Prime Minister Silvio Berlusconi drops out of the presidential race. Current prime minister Mario Draghi remains favourite to take over from Sergio Mattarella. Meanwhile, the U.S. recalls all non-essential embassy personnel from Kiev, as the UK government considers strident financial sanctions on Moscow in the event of an invasion of Ukraine. And in corporate news, Nelson Peltz’s activist hedge fund Trian snaps up a stake in Unilever on the back of shareholder frustration with CEO Alan Jop

Streaming giant Netflix sees shares plummet in extended trade, putting it on track for its worst day since 2012 as increased competition hits subscriber growth. The Nasdaq descends deep into correction territory as rate hike fears spook investors, but U.S. Treasury Secretary Janet Yellen tells CNBC inflation should fall back down towards 2 per cent later this year. Cryptocurrencies also take a hit, sinking to multi-month lows, with Bitcoin breaking below $40k. And U.S. Secretary of State Antony Blinken is set to meet his Russian counterpart Sergei Lavrov in Geneva, while Russia’s Ambassador to the EU tells CNBC in an exclusive interview that he hopes Washington will follow through on its security guarantees.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Higher treasury yields continue to pile pressure onto U.S. equities with tech stocks suffering in particular. The Nasdaq enters correction territory but BofA CEO Bran Moynihan tells CNBC the prospect of rate hikes signals that the worst of the pandemic effects on the economy are largely behind us. In a bid to prop up a slowing Chinese economy, the PBOC slashes a key lending rate for the first time in two years, sending Asian markets higher. Meanwhile, UK Prime Minister Boris Johnson has once again faced calls for his resignation over Covid rule-breaking allegations as well as a defection from his own party to Labour. In geo-political news, President Biden warns Russia of disastrous consequences should Moscow decide to invade Ukraine. This as, the EU foreign service head tells CNBC exclusively that the bloc should brace for conflict.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Ten-year Treasury yields hit a two-year high sparking a Wall Street sell-off as investors brace themselves for a possible rate hike at next week’s Fed meeting. However, BlackRock CEO Larry Fink tells CNBC he remains sanguine about any tightening at this point. We have more bank earnings from Wall St. with Goldman Sachs plunges almost 7 per cent in yesterday’s session as its Q4 costs come in higher than expected. Microsoft seals the biggest tech deal of all time, snapping up gaming company Activision Blizzard in a deal worth $67bn. And, U.S. Secretary of State Antony Blinken arrives in Kiev in a bid to quell tensions with Moscow. CNBC hears from Ukraine’s ambassador to the EU who says the bloc’s dependency on Russian gas is central to resolving the stand-off.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asian equities slump and U.S. futures fall, while yields climb, ahead of a big week for the Fed. In Japan, the BoJ lifts inflation forecasts and says risks are generally balanced. Newly appointed German foreign minister Annalena Baerbock arrives in Moscow following talks with her Ukrainian counterpart in Kyiv, as tensions with Russia show no signs of abating. And in Brussels, euro zone finance ministers meet in an attempt to agree a new debt reduction plan for the bloc. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

From politics to sports to banking giants, Covid rule breaches threaten the positions of the powerful. Credit Suisse chairman António Horta-Osório is forced to resign after breaching restrictions in Switzerland on several occasions. Former UBS Group COO Axel Lehmann has been named his successor. In M&A news, Unilever’s £50bn offer for GSK’s consumer unit is slapped down. However, GSK has assured investors it remains committed to spinning off the business. Meanwhile, Chinese GDP grew by 8 per cent in 2021 but expansion has decelerated to an 18-month low. The PBOC has cut a key loan rate in an attempt to aid economic activity. And UK Prime Minister Boris Johnson faces more pressure ahead of the ‘Partygate’ investigation report. Opposition Labour leader Keir Starmer says the lockdown rule-breaking at No. 10 and other ministries means Johnson has “lost the moral authority to lead” and needs to resign.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com

Tech stocks weigh on U.S. and Asian markets with the Nasdaq breaking a three-day winning streak and the Nikkei slumping. Producer price inflation Stateside hits its highest level in 12 years, while several Fed members take a more hawkish line on rate hikes. Chinese imports come in far lower than expected but exports are propped up by global demand. In tech news, German software giant SAP issues strong guidance for 2022 and predicts a better-than-expected Q4.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. consumer inflation hits a four-decade high but President Biden says prices have peaked. U.S. futures are down ahead of an earnings season where S&P 500 companies are expected to deliver Q4 growth upwards of 20 per cent. U.K. Prime Minister Boris Johnson faces a chorus of calls to resign after admitting he did attend a Downing Street drinks party in May 2020 while the country was subject to strict lockdown measures. And NATO and Russia remain locked in a standoff over Ukraine, as both sides refuse to give ground on key demands despite hours of talks in Brussels.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. Fed chair Jerome Powell testifies in front of the Senate Banking Committee and warns law makers that inflation remains a severe threat. However, Powell insisted that the U.S. economy is now robust enough not to require additional pandemic-level monetary stimulus. Powell’s main task would be to keep inflation in check, as U.S. markets look ahead to a CPI print today which could hit a high not seen for 40 years. Tech stocks rally in Wall Street and Hong Kong. Chinese factory and consumer price growth has softened after Beijing moves to curb rising raw material costs. In the UK, Prime Minister Boris Johnson’s tenure looks increasingly fragile following fresh Covid rule-breaking allegations by his government. And we take you to St. Moritz, Switzerland with the latest from the Crypto Finance Conference.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Nasdaq dips in to correction territory but wins back losses of more than 2 per cent. We hear exclusively from Goldman Sachs’s David Kostin who says the tech disconnect is the largest issue for clients. U.S. Federal Reserve chairman Jerome Powell is set to testify in the Senate where he will address the effect inflation is having on the American economy while JPMorgan CEO Jamie Dimon predicts the U.S. is headed for its best growth phase in decades, even in the face of rate hikes. Investment fund Cerberus sells off more than $500m of Deutsche Bank and Commerzbank stocks. And in Covid news, Pfizer CEO Albert Bourla announces that the pharma giant will have a new Omicron vaccine 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. Secretary of State Antony Blinken says high-stakes talks between Washington and Moscow are unlikely to progress over Ukraine, as Russian troops gather on the border. In China, 14 million people are being tested for Covid over 2 days in the north-eastern port city of Tianjin – less than an hour from the capital. December payrolls in the U.S. come in weaker than expected but unemployment falls. And in banking news, Italy’s BPER reportedly improves its offer for Carige in a bid to fend off rival interest from French lender Credit Agricole.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. treasury yields continue to surge with investors bracing for an accelerated winding down of monetary support, while billionaire investor Ray Dalio tells CNBC the Fed is in a ‘delicate’ position. The WHO warns of an Omicron tsunami as global health systems struggle, but it says vaccine equity could end the pandemic this year. Oil prices pop as the violence continues in Kazakhstan’s largest city, Almaty, with scores killed and up to 3,000 detained. Russian troops have been called in to restore order. And in the U.S., President Biden marks the one-year anniversary of the deadly storming of Capitol Hill.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. tech majors slide and the 10-year yield touches 1.7% after the Fed minutes hint at efforts to shrink the balance sheet together with rate hikes. At least seven EU countries report record daily Covid cases – while the UK eases testing rules. And French supermarket giant Auchan eyes a second bid for rival Carrefour after initial takeover talks were suspended in October.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow hits a new record high as investor confidence picks up, but tech stocks slump on a rotation out of the sector. Opec nations hold their nerve against the Omicron outbreak and agree to boost output for the seventh consecutive month. China Mobile lists in Shanghai in the country’s biggest domestic IPO in a decade. Meanwhile in Europe, Covid cases continue to surge with new daily highs recorded in France and the UK.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow and the S&P 500 begin 2022 with fresh records, as Apple becomes the first U.S. company to achieve a $3 tn market cap. Troubled Chinese property giant Evergrande’s shares resume trading after authorities order it to demolish 39 developments on the tropical island of Hainan. Chinese manufacturing beats expectations in December as input prices fall to their lowest level since May 2020. And Daimler unveils an EV concept car with a 1000km range, but CTO Markus Schäfer tells CNBC exclusively that the chip crunch is likely to continue into the new year. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. futures begin 2022 pointing high but Asian equities are softer with the Hang Seng under pressure, as Evergrande is halted, pending the release of inside information. Turkish inflation rockets, with CPI up 13% on the month. France becomes the sixth country in the world to record 10mn covid cases, as it eases restrictions. Tesla beats its own delivery and production records in Q4, delivering almost 1mn units in 2021. And U.S. President Joe Biden reassures his Ukrainian counterpart that America would respond decisively should Moscow invade.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese manufacturing activity beats expectations for December, in spite of continuing Covid restrictions. U.S. markets are set to end 2021 strongly with Wall Street eyeing its best three-year run since the late 1990s. The WHO warns of a ‘tsunami’ of global Covid cases as the Omicron variant peaks in at least 20 countries. And Presidents Biden and Putin hold talks about de-escalating tensions over Ukraine but find no resolution as they trade warnings and threats.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 hits a 70th record high this year, with U.S. markets set to finish a volatile year on a high. NIAID director Anthony Fauci tells CNBC that the Omicron variant surge is likely to peak in the U.S. by the end of January. In China, troubled property giant Evergrande reportedly misses another bond payment, causing shares to slide. In IPO news, Chinese AI firm Sensetime sees a stellar Hong Kong debut. And President Biden accepts President Putin’s request for talks later this afternoon, as tensions over the Ukrainian border continue to simmer.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.