Squawk Box Europe Express

Wall Street rebounds after three straight days of losses with the Dow enjoying its best session since March but stocks are set to stay in negative territory for the week. Disney posts better-than-expected Q1 results on strong theme park revenues but a slowdown in streaming subscriptions weighs on the share price as economies emerge from lockdowns. Alibaba suffers its first quarterly loss since it went public in 2014. The Chinese e-commerce titan’s earnings were impacted by a massive anti-trust penalty levied by Beijing regulators. And in energy news, Colonial Pipeline is back and up and running but not before paying a $5m ransom to cyber criminals, according to NBC News sources.  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 reeling from inflation hitting a near 13-year high. Nearly all sectors tumble into the red with the Dow reporting its single-worst session since the beginning of the year. The Nasdaq posts the biggest declines, with Apple losses leading the way. Meanwhile, Tesla CEO Elon Musk announces the electric car maker will no longer accept Bitcoin as payment due to environmental concerns related to electricity use in crypto-mining.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A wild rollercoaster Wall Street session sparks inflation fears, pushing stocks lower across Asian markets. The Nasdaq ends up on the flatline while the Dow records its worst day since February, tumbling 500 points. St. Louis Fed Chairman James Bullard becomes the latest central banker forecasting higher inflation. Bullard tells CNBC that talk of tapering is premature while the effects of the pandemic still resonate in some parts of the economy. Last Friday’s Colonial Pipeline ransomware attack is being felt at the pumps with gasoline supplies tightening and forecourt queues forming across the U.S. east coast. A decision on fully reopening the facility is expected today. Meanwhile, violence flares in the Middle East as Hamas and Israeli forces exchange rocket fire. The UN warns the situation could spiral into full-blown war. And in autos news, Nissan has forecast a third consecutive year of losses, causing shares to nosedive into the red. The Japanese car giant’s operations have been hampered by the global se

Inflation fears weigh on Asian markets and U.S. futures amid accelerated rotation out of high-growth tech stocks. Tesla shares have slumped more than 6 per cent. In Japan, Softbank and Tokyo Electron lead a steep decline in the Nikkei. China’s April manufacturing prices rise at the fastest pace in more than three years but consumer prices remain weak on the back of price rise fears related to the global semi-conductor shortage. Meanwhile, U.S. petrol prices soar to an 8-year high, as the Colonial Pipeline remains disabled following the weekend ransomware attack. The hacking group responsible - believed to be based in Russia - apologised for its actions, while American investigators continue their probe. And in pharma news, Pfizer-Biontech’s vaccine will soon become available to young teenagers in the United States following successful tests by the FDA.    See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A major U.S. fuel pipeline suffers a cyber attack, shutting down facilities serving up to 50 million people. NBC News sources learn Russian criminal groups may be responsible for the ransomware hacking on Colonial Pipeline. The U.S. government has issued an emergency declaration following the incident, with oil prices moving higher. In broader markets, Wall Street hits new highs on Friday despite the April U.S. jobs numbers coming in below expectations. Scottish First Minister Nicola Sturgeon has launched a renewed push for a second independence referendum following the SNP’s resounding victory in last Thursday’s elections. There is fresh discord between Brussels and Washington over Covid vaccine patents with EU leaders slamming President Biden’s IP waiver plan and calling for production to be ramped up to aid poorer nations.   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 an all-time high – jumping 300 points - as U.S. jobless claims beat expectations. Markets now turn to the Non-farm Payrolls due today. Central banks are in focus as the Federal Reserve believes that asset prices in stock markets are over-valued and pose a threat to the financial system. Meanwhile, the Bank of England hikes the UK GDP outlook for 2021 by 7.25 per cent. BoE Governor Andrew Bailey tells CNBC that inflation ahead could be ‘bumpy,’ but so far there was no cause for alarm in the medium term. Still in Britain, we are live in Edinburgh while awaiting crucial parliamentary, regional and local elections from across the country. China’s recovery continues with imports and exports seeing a strong rise in April. And pharmaceutical stocks are mixed after German Chancellor Angela Merkel denies waiving IP rights for Covid vaccines while U.S. President continues pushing in the opposite direction.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/pri

Strong U.S. earnings help push the Dow to a new record but tech stocks suffer as Federal Reserve Vice-chairman Richard Clarida says talk of tapering is still some time off. Pharma shares also tumble after the White House backs a patent waiver for Covid vaccines. Meanwhile, Sino-Australian relations deteriorate further after China suspends all activities associated with the Strategic Economic Dialogue between the countries. Beijing has accused Canberra of having a ‘Cold War mindset’. And in banking news, French lender Société Générale posts a first-quarter profit of €814m on the back of solid global bank performances.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 Secretary Janet Yellen sends jitters through the markets, saying interest rates may have to rise eventually, but later admits that any hikes are neither predicted nor recommended. Tech stocks plunge following Yellen’s comments. The Nasdaq reacts by posting its worst day since March while Apple shares fall 3 per cent. In corporate news, U.S. ride-hailing app Lyft beats Q1 expectations with revenues up 7 per cent on the quarter. Canadian business jet giant Bombardier moves its positions out of French rail company Alstom, selling its 3.1 per cent stake for $663m. We also have first-quarter earnings from several European firms including Deutsche Post DHL and Virgin Money.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Tri-State area moves to join Florida and Texas in reopening most businesses to full capacity following months of lockdown. The Dow and S&P surge on the news with retail stocks gaining strongly. President Biden aims to garner support for his recovery plan after GOP lawmakers call the plan an “economy and jobs killer”. Meanwhile, Biden’s Secretary of State Antony Blinken meets UK Foreign Minister Dominic Raab in London for the first in-person G7 summit in two years. The pair discussed how to counter geo-political threats posed by Russia and China. In media news, Vivendi is set to sell down its stake in Italian broadcaster Mediaset, in a bid to resolve a five-year legal wrangle. We also have a slew of earnings from around Europe, including Adecco, Infineon and S4 Capital.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 are up ahead of the first May trading day. Investors ready themselves for a new week of earnings and Treasury Secretary Janet Yellen says price pressures are not a concern following President Biden’s proposed $4.1tn stimulus package. Legendary investor Warren Buffett, however, warns that inflation is a risk as the ‘red hot’ U.S. economy recovery gathers pace. Meanwhile, the Covid pandemic rages on in India, which records more than 3,400 deaths - its highest daily death toll so far. And in M&A news, private equity titan Apollo is closing in on Verizon’s media assets in a deal believed to be worth up to $5bn.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Amazon sees another $100bn quarter as it continues to prosper from lockdowns around the world. Sales surged 44 per cent and the online retail giant expects strong revenue ahead even as virus restrictions ease. But it’s not all good news for the tech giants. Twitter misses Q1 expectations with falling growth in active users, despite revenues rising. Shares nosedive by double digits in extended trading. The U.S. economy posted 6.4 per cent growth in the first quarter with the vaccine rollout and federal spending helping the country back on track to pre-pandemic levels. Meanwhile, China’s manufacturing rebound is hindered by supply chain disruptions. The nation’s private sector, however, sees activity rise by its fast pace since the beginning of the year. Also in China, tech stocks tumble after Beijing regulators laser in on so-called ‘risky’ lending and payments in a bid to rein in its powerful domestic tech sector. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https

President Biden touts progress on the U.S. vaccine rollout and a resurgent economy during his first joint address to Congress. He unveiled a new $1.8tn spending plan and urged lawmakers to raise corporate tax and levy the ultra-wealthy to foot the bill. Treasuries and stocks falter after Federal Reserve chairman Jerome Powell holds rates steady. Powell said the recovery remained uneven in places and ruled out tapering for the foreseeable future. In Big Tech earnings, Apple sales surge by more than 50 per cent after seeing double-digit growth in all its product categories. It also announced $90bn in share buybacks. Facebook also enjoys a 50 per cent revenue increase on higher priced advertising. In Europe, Airbus has warned that the aviation sector’s recovery is still incomplete. This, despite the French plane maker posting a 147 per cent hike in Q1 adjusted operating profit and maintaining 2021 guidance. And in banking news, Standard Chartered’s wealth management unit reports its best-ever quarter but th

It’s another busy day of earnings on both sides of the Atlantic. Google’s parent company Alphabet posts its biggest earnings beat since it went public. The media giant has launched a $50bn share buyback. Microsoft shares are down despite its strongest Q1 revenue for three years on the back of booming cloud services and PC sales during global lockdowns. In Europe, Santander records a net profit of €1.6bn and says it is on track to hit its goals for the year and aims to drive down costs further. Earnings are also coming in from Deutsche Bank, Covestro, Carlsberg and Electrolux.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

HSBC leads a slew of earnings on both sides of the pond with the UK lender posting its best quarter since the start of the pandemic as profits surge 79 per cent. CFO Ewen Stevenson tells CNBC shareholders can expect dividend payouts once again. UBS also has a strong Q1 but results were dented by a CHF434m hit from exposure to the collapse of Archegos. Stateside, Tesla posts a record first quarter. Betting on Bitcoin has helped to add $100m to the electric car maker’s bottom line but CEO Elon Musk admits to ‘insane’ manufacturing difficulties due to the global chip shortage. And in shipping news, Maersk lifts its full-year outlook on strong demand and rising freight rates.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asian equities hit a six-week high to kick off a week when more than a third of companies listed on the S&P 500 are set to report Q1 earnings and markets await the Fed’s rate decision. Meanwhile, India continues to suffer from record Covid case and death levels over the weekend. Hospitals are overwhelmed and oxygen in short supply as the UK announces it is shipping urgent medical equipment to Delhi. In Italy, PM Mario Draghi eases lockdown restrictions while striking a recovery plan with Brussels reportedly worth €200bn. EU Commission President Ursula Von Der Leyen pledges to resume flights between the bloc and U.S. for fully vaccinated tourists this summer.  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 tumble with the Dow leading losses on the news that President Biden is set to hike capital gains tax to more than 40 per cent. Biden also held a virtual world leaders’ climate summit where he pledged the U.S. would slash its carbon emissions in half within a decade, reasserting the nation’s commitment to tackling climate change. Meanwhile, the pandemic rages on in India, which saw a record 300,000 new Covid infections for a second straight day. The country’s second wave is reportedly pushing the healthcare system to the brink of collapse, as it is already suffering regional oxygen shortages. In Europe, CNBC learns the EU is eyeing imminent legal proceedings against AstraZeneca’s shortfalls in vaccine deliveries to the bloc. And in earnings news, LafargeHolcim reports a record Q1 on rising sales. The world’s largest cement maker says it expects to reach its 2022 targets a year in advance.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-

Credit Suisse slumps to a CHF252m Q1 loss with CEO Thomas Gottstein calling the Archegos and Greensill scandal-linked losses “unacceptable”. The Dow regains more than 300 points and the Nasdaq bounces back by 1 per cent on strong pandemic recovery stocks. Airbus reorganises aero-parts production lines in France and Germany in a bid to cut costs. President Biden’s environmental summit is set to begin on Earth Day with Treasury Secretary Janet Yellen pledging to tackle the “existential threat” of climate change. In Frankfurt, ECB President Christine Lagarde is expected to keep rates on hold with pressure growing for the central bank to taper bond-buying.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asian markets mirror losses Stateside. The Dow posts Wall Street’s biggest declines as virus-related pessimism overshadows strong corporate earnings. Netflix, however, is not among the positive performers. Its shares plunge in after-hours trading following faltering subscription numbers as lockdowns ease. Kering, however, tops Q1 sales expectations, spearheading the luxury sector’s revival. The French giant’s Asian performance offsets continuing weakness in Europe. And the breakaway European Super League collapses dramatically after just two days. All six English Premier League clubs withdraw from the project following a massive backlash from fans, clubs and footballing governing bodies.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Armin Laschet wins the CDU’s nomination for German Chancellor, moving one step closer to succeeding Angela Merkel. U.S. equities are lower as tech stocks stumble following a deadly driverless Tesla car crash in Houston. Meanwhile, Chinese President Xi Jinping addresses the Boao Forum, calling for global cooperation and equitable governance to avoid a new ‘Cold War’. In autos news, BMW releases a surprise set of Q1 results that show profits soaring by 370 per cent on strong demand in China and increasing prices. And the UK government says it will take all possible measures to halt the establishment of the breakaway European Super League. European football’s governing body, Uefa, has called the move “a spit in the face” of fans of the game.   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 Dow close the past week at new record highs following a strong start to the U.S. corporate earnings season, ahead of another week of key numbers. Meanwhile, pandemic deaths have reached the grim milestone of 3 million deaths worldwide. India alone has recorded up to 250,000 new infections in a single day. Research is ongoing to assess future risks from the virus, with Oxford University undertaking human Covid re-infection trials to assess the efficacy and longevity of vaccines and immune responses to the virus. In China, Shanghai plays host to two days of high-level climate talks between Washington and Beijing where environmental envoy John Kerry and his Chinese counterpart, Xie Zhenhua pledged cooperation on climate change ahead of President Biden’s virtual leaders’ summit this week. And, the PBOC says it does not intend to replace the dollar as the world’s reserve currency with its digital yuan.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19