Squawk Box Europe Express

We are live in Glasgow, Rome and London ahead of the landmark COP26 summit. UK Prime Minister Boris Johnson says humanity must not flinch in the face of the climate change. However, U.S. President Joe Biden voiced disappointment at the slow progress seen during the G20 in Rome and lashed out at the lack of climate commitment from China, Russia and Saudi Arabia. Washington and Brussels agree on lifting steel and aluminium tariffs while Italian PM Mario Draghi tells CNBC he has high hopes for a return to multilateralism. And in Asia, markets are broadly higher. The Nikkei is leading gains as Japan’s ruling LDP maintains its majority in parliament.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Apple fails to beat quarterly earnings expectations for the first time in 5 years. Despite Q3 revenue jumping by nearly 30 per cent, the tech giant has felt supply chain bottlenecks bite on phone and computer sales. Amazon also misses forecasts as the pandemic-era e-commerce effect begins to wane and consumers start switching back to physical stores. Its outlook for the Christmas period ahead also disappointed. Facebook has announced a rebranding, now calling itself Meta. The social media company looks to focus on a new vision for the internet. Meta CEO Mark Zuckerberg hopes to move on from recent scandals. In the U.S., the S&P 500 hits a new record high as investors ignore weak GDP growth data. The Nasdaq also hits an all-time peak. And, we hear from BNP Paribas CFO Lars Machenil who says the French lender is well positioned for continued gains after posting a near-5 per cent rise in Q3 revenues.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art

Airbus boosts its FY guidance as profits dip less than forecast on the back of pandemic belt-tightening. Shell faces activist investor ire as hedge fund Third Point reportedly builds a $750m stake and demands a break-up of the company’s assets. In Canada, the central bank ditches its Covid-era bond-buying programme while European markets await today’s ECB rate decision. We also have a slew of Q3 earnings on Super Thursday with C-suite interviews from Skanska, WPP, Volkswagen and more.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Google parent Alphabet posts record Q3 profits on the back of strong advertising sales, but its shares trade lower in extended hours despite the company shrugging off any perceived impact from Apple’s iOS changes. Microsoft also beats expectations on strong cloud performance – its best quarterly sales growth in 3 years. Meanwhile, Chinese industry reports booming profit growth in the face of supply chain bottlenecks, high raw material costs and power rationing. Meanwhile in Washington, Democrats announce plans over a new wealth tax against the country’s richest companies while they wrangle over funding for President Biden’s ‘Build Back Better’ plan. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Swiss lender UBS smashes Q3 forecasts, with pre-tax profit surging by more than 30 per cent. Facebook earnings top expectations and the company increases its share buyback programme, but the numbers are overshadowed by whistleblower Frances Haugen’s testimony to UK lawmakers in which she accused the social media giant of political bias and putting profits over online user safety. Facebook has hit back at the allegations. Tesla breaks through the $1tn market valuation ceiling after car hire Hertz company orders 100k vehicles. The deal prompts shares to soar, adding $36bn to CEO Elon Musk’s personal fortune.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Europe’s largest lender, HSBC, posts stellar Q3 results with a 74 per cent surge in profits and announces a £2bn share buyback programme. CFO Ewen Stevenson tells CNBC the bank is well positioned for any interest rate hikes. Meanwhile, Italy’s attempts to save distressed lender BMPS takes a hit after discussions between Unicredit and the state treasury collapse. Evergrande sees shares spike for its EV unit after the Chinese developer’s chairman hints at a move away from property. And Facebook’s woes continue ahead of earnings today. Whistleblower Frances Haugen is due to provide further testimony about online safety at the social media giant in London today.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 closes at a record high – the seventh consecutive day in the green – boosted by Tesla’s performance. However, IBM shares close nearly 10 per cent lower, pushing the Dow to close lower on the day. In China, property giant Evergrande has reportedly paid a key interest payment, bumping shares higher and raising hopes in the sector that the company can avoid a default. European corporates continue their latest earning disclosures. L’Oréal reports higher Q3 performance on strong demand for luxury beauty products. On Wall St., Snap shares are down by more than 20 per cent with the social media site blaming Apple’s recent privacy changes for disrupting its advertising business. And EU leaders meet in Brussels where many criticise Poland over its stance on EU law, but Polish Prime Minister Mateusz Morawiecki says Warsaw will not accept ‘blackmail’ from the bloc.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-in

Strong U.S. earnings push the Dow to a new intra-day high, while Bitcoin hits its own record. Tesla shares sink in extended trade after the EV maker issues a warning about supply chain problems affecting margins. In France, retail giant Carrefour holds its FY cashflow outlook steady despite taking a hit from Covid restrictions. And Swiss-Swedish robotics and automation giant ABB cuts guidance, as earnings miss forecasts.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 firmly in the green with the S&P 500 posting a fifth consecutive day of gains, boosted by positive Q3 earnings. Asian equities have followed suit. Netflix announces that Squid Games has become its biggest TV show ever, pushing the streaming giant’s latest earnings ahead of forecasts. Meanwhile, the first ever Bitcoin futures ETF gains on its first day of trading, pushing the cryptocurrency towards its all-time high. In luxury news, however, Gucci posts a miss as new Covid outbreaks in Asia outbreaks hamper sales, but parent company Kering Group sees like-for-like sales jump by 12 per cent to beat expectations.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 is in the green for the fourth day running ahead of key U.S. earnings. Industrial production Stateside, however, slumps to a more than six-month low. Alibaba’s Hong Kong shares trade higher following the launch of a new server chip for its cloud unit which could directly compete with Amazon and Microsoft. And Apple shares jump as investor’s cheer the tech giant’s newly launched Air Pods and MacBooks powered by its in-house semi-conductors, further breaking away from Intel. We are also live at the UK Global Investment Summit in London where Prime Minister Boris Johnson is due to announce almost £10bn of UK business commitments in an attempt to attract investors from around the world after Brexit and the Covid pandemic.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

China’s economy grows at its weakest pace for a year as energy troubles and supply chain bottlenecks stifle momentum. But consumption remains strong as retail sales beat expectations. The PBOC says that the fallout from the Evergrande debt crisis is manageable but admits that ‘mismanagement’ within some of the country’s biggest companies does pose risks. The BoE’s Andrew Bailey says rising costs may prompt action from the central bank but ECB president Christine Lagarde tells the IMF that she has no reason to believe inflation will not be transitory. And in Germany, Olaf Scholz edges ever closer to the chancellery after the Green Party votes to enter formal coalition talks with the Social Democrats and FDP.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 posts its best day since March as earnings season kicks into gear on a upbeat day for US markets. All three major averages are now on track to end the week in positive territory. Banking stocks are among the winners on Wall St. Bank of America, Morgan Stanley, Citi and Wells Fargo all post earnings beats as trading ramps up and credit reserves are released. As the gas crisis grips Europe and prices soar, Russia's Deputy Prime Minister Alexander Novak tells CNBC that the Nord Stream 2 pipeline is a ready-made solution, waiting to go. And Hugo Boss hikes its full-year outlook, amid strong demand in Europe and the Americas, but the German fashion retailer warns of the impact of renewed Covid restrictions in the Asia Pacific region.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Vladimir Putin tells CNBC his country is not weaponising gas against Europe but instead blames the U.S. for not addressing supply issues in advance. Putin was speaking at Russia’s Energy Week, where we also spoke to a slew of energy bosses, including BP CEO Bernard Looney who said the current gas crisis can only be resolved with further investment in the sector. Meanwhile, two more UK gas companies - Pure Planet and Colorado Energy – collapse amid the autumn price spike. In Washington, the latest FOMC minutes indicate that U.S. tapering may begin as early as mid-November as annual inflation surges to its highest level for 30 years. Inflation sees highs across the Pacific as well, with Chinese factory gate prices rising at their fastest pace since records began, but CPI is held down by weak pork prices. And U.S. banks kick off Q3 earnings with JPMorgan profits boosted by better-than-expected loan losses.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at

China sees accelerating export growth beat expectations for the month of September, but imports fall short, prompting fears of a domestic slowdown. The IMF revises its global growth outlook, citing supply chain issues and the Covid pandemic for the cut. Chief Economist Gita Gopinath urges a more urgent global vaccine rollout. And earnings season gets under way with LVMH Q3 sales up 20 per cent, but an Asian Covid resurgence is hampering growth in its watches and jewellery divisions. Later this Wednesday, JPMorgan reports its latest earnings and we’ll get crucial inflation data from the U.S. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Oil surges with U.S. crude at 7-year highs but Wall Street finished in the red as global equities markets fret over inflation concerns. Under-fire IMF Managing Director Kristalina Georgieva gets the backing of the agency over a data-rigging scandal, but U.S. Treasury Secretary Janet Yellen warns over slipping ethical standards. Chinese property giant Evergrande fails to honour yet another debt deadline. Rival real estate companies Modern Land and Sinic also move to delay their own due dates. And JP Morgan CEO slams Bitcoin as ‘worthless’ but says he will still commit to helping clients access the cryptocurrency which is up 30 per cent in October.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A positive week for Wall Street gives way to disappointing U.S. jobs data in September, despite Congress agreeing to extend the debt ceiling. Meanwhile, world leaders reach a historic agreement for a minimum global tax rate of 15 per cent. The energy sector continues to be in focus with oil prices continuing to rise on surging demand. WTI hits its highest level in 7 years, surpassing $80 a barrel. Gas, however, falls. UK industry leaders still warn of potential shutdowns without government assistance. Business Secretary Kwasi Kwarteng has stopped short of guaranteeing there would be no disruption to consumers this winter. In China, Meituan shares are up after the shopping platform received a smaller-than-expected fine for abusing its market position.   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 hit a three-day green streak after lawmakers in Congress agree to extend the debt ceiling until early December. Chinese services activity bounces back, while stock markets resume activity positively following the Golden Week holiday. In Germany, Armin Laschet says he will stand down as leader of the CDU following the party’s worst electoral showing ever with leadership elections proposed for next week. The OECD inches closer to a 15 per cent global tax agreement after Ireland moved to ditch its 12.5 per cent rate. And in tech news, Samsung is due to post its best quarterly profits in 3 years on elevated semi-conductor prices. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The GOP offer a temporary truce in federal funding talks with Democrats, potentially extending the debt ceiling to December. U.S. equities rebound on the news and Asian stocks rise amid a volatile week of trading so far. Meanwhile, natural gas prices in Europe whip-saw on Wednesday after Russian President Vladimir Putin offers to boost supplies to the continent, as the Kremlin expects prices to ease further once Berlin greenlights the Nord Stream 2 pipeline. Germany’s FDP and the Greens enter coalition talks with the SPD today, moving Olaf Scholz closer to succeeding Angela Merkel as Chancellor. And plans are afoot for Presidents Biden and Xi to hold virtual talks following successful high-level negotiations between the U.S. and China in Zurich.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street rebounds from recent lows, with tech stocks solidly in the green following Tuesday’s rout. Meanwhile, the U.S. heads towards a potential default if Congress cannot pass measures to raise the debt ceiling. U.S. Treasury Secretary Janet Yellen tells CNBC exclusively that delays failing to pay government debt could be “catastrophic”, warning of a potential recession. Gas prices soar once again in Europe and the U.S. causing fresh inflationary jitters. This as UK gilt yields hit two-year highs, with the driver shortage continuing to have knock-on effects in the economy. In Paris, OECD members have moved a step closer to agreeing a global tax deal, tweaking the wording of the draft. And a Facebook whistleblower testifies to the U.S. Senate saying the social media giant prioritises profits over user safety. CEO Mark Zuckerberg denies the claims. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street falls sharply lower, dragged down by U.S. tech stocks and rising bond yields. Financials and energy shares are also lower as investors eye the Fed’s next tapering move. Facebook shares tumble following a six-hour outage of its platforms while a whistleblower accuses the social media giant of “a betrayal of democracy”. U.S. oil prices surge to a seven-year high as Opec+ nations refuse to increase production. Volvo Cars have announced plans they will be seeking a Swedish listing next year with a potential value of $30bn. As Eurogroup finance ministers meet in Luxembourg, France and Spain have partnered to demand reform in the energy sector amid soaring gas prices across the continent. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.