Squawk Box Europe Express

U.S. markets are on tenterhooks with all eyes on the Federal Reserve, as investors wait to see whether Fed Chair Jerome Powell will react to rising bond yields and increasing inflation speculation at the close of the two day FOMC meetings today. Back on the continent, it's the third and final day of voting in an election that could see Prime Minister Mark Rutte win a fourth consecutive term - having resigned in January over a child benefits scandal. The country’s relationship with the EU has been among the central issues for voters. Meanwhile, the European Union's medicines agency attempts to reassure the public over the safety of the Oxford-AstraZeneca coronavirus vaccine, after some member states paused its rollout with concerns over possible side effects. And a landmark moment for the gig economy as Uber's more than 70-thousand U.K. drivers get workers' rights from today -- earning the national living wage, and benefits like holiday and sick pay, after a ruling by the Supreme Court last month.See Privacy P

The Dow and S&P 500 hit new highs, as investors bank on the economy reopening. Investors will keep an eye out on the Fed which prepares to meet later today. In Europe, vaccine efforts could face delays after Germany, France, Italy and Spain all pause their Astrazeneca jab rollouts over blood clot fears. The European Medicines Agency's safety committee is due to meet today on the matter, as the WHO calls for calm. Meanwhile Down Under, Facebook strikes a deal with Rupert Murdoch's News Corp to pay for content in Australia, after the social media giant briefly cut off access to news in the country. And, Volkswagen announces six battery factories across Europe by 2030. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Biden signs the $1.9tn stimulus bill and in a prime time TV address he unveils the roadmap out of lockdown, urging eligible Americans to take the vaccine where possible. U.S. equities react positively with both the Dow and S&P 500 hitting new highs. Shares in South Korean web retail giant Coupang rally up to 40 per cent after the company lists on the NYSE - Wall Street’s largest listing so far this year. Coupang now has a market cap of $84bn. In further IPO news out of Asia, China’s Baidu is eyeing a secondary flotation in Hong Kong while Singaporean ride-hailing and delivery app Grab is set to go public through a SPAC. Meanwhile, there is renewed tension between Brussels and AstraZeneca as the company will reportedly miss already reduced delivery targets to the bloc.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The U.S. Congress passes the $1.9tn virus stimulus bill and sends it onto President Biden to sign into law. The Dow hits a record high, while U.S. Treasury yields pare down after moderate take-up in the latest 10-year auction. Across the Atlantic, ECB policy makers react with caution over rising sovereign bond yields ahead of today’s central bank meeting. GE is to sell its jet-leasing business to Ireland’s AerCap. The $30bn deal will create the sector’s largest lessor by market share. And South Korea’s answer to Amazon, Coupang, raises $4.2bn ahead of its NYSE listing – the biggest IPO in the U.S. this year so far.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Nasdaq marks its best session since November, just one day after slipping into correction territory, as bond yields ease. Latest data from China fuels inflation concerns, with factory prices rising at their fastest pace in two-and-a-half years. GFG Alliance holds last-ditch talks with Greensill Capital as the supply chain finance group files for insolvency, amid reports Softbank pumped $400m into the lender just months ahead of its collapse. And the EU and UK are once again at loggerheads over vaccine distribution, with Brussels accusing London of blocking exports, which Downing Street angrily denies.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Dow rallies to a record high but the U.S. tech rotation to cyclicals continues with the Nasdaq suffering a fall into correction territory. However, Ark Invest founder Cathie Wood tells CNBC she is optimistic the bull market is broadening and has space to run. Following the Senate’s approval of President Biden’s $1.9tn stimulus bill, so-called ‘meme stocks’ are rallying on expectations that some retail investors may pump their stimulus cheques to continue fuelling the market short squeeze. In Europe, troubled lender Greensill Capital has filed for bankruptcy, citing “severe financial distress”. The collapse of Greensill means that up to 5,000 steel jobs at Liberty UK could now be at risk.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

China says relations with the U.S. should move on from “zero-sum finger-pointing” as Beijing calls for the removal of “unreasonable curbs on co-operation”. Early U.S. futures are mixed despite President Biden’s $1.9tn stimulus plan passing the Senate before it heads back to the House. Brent crude tops $70 a barrel for the first time since the outbreak of the pandemic, while WTI hits a 2-year high after Saudi oil facilities suffer a drone attack claimed by Iranian-backed Houthi fighters in Yemen. And the U.S. and EU agree to a tariff truce over a 17 year subsidy wrangle between Boeing and Airbus.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Nasdaq turns negative for 2021 as tech stocks continue to weigh on the back of Federal Reserve Chairman Jerome Powell’s failure to address the recent surge in bond yields and investors’ inflation jitters. OPEC+ leaders have agreed to maintain supply cuts until April amid ongoing demand uncertainty, nudging prices upwards. China cools down recovery expectations, outlining a growth target of more than 6 per cent this year as the annual NPC convenes. And Italy blocks exports of AstraZeneca doses to Australia as the EU attempts to scale up its stuttering vaccine rollout.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Tech stocks continue to weigh on Wall Street with sharp sell-offs in Asia mirroring the declines. Spikes in bond yields are once-again blamed. We speak with Bundesbank President Jens Weidmann who says he is ready to react to the moves. No big surprises in the UK Budget as Chancellor Rishi Sunak pledges billions of pounds to support workers and businesses post-pandemic. Plans to shore up the ballooning deficit include significant corporate tax hikes by 2023. In Germany, financial regulator Bafin has reportedly begun legal proceedings against Greensill Bank over alleged balance sheet manipulations. And oil prices rise ahead of tomorrow’s OPEC+ meeting where output cuts are likely to be maintained.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

UK Chancellor of the Exchequer Rishi Sunak is set to unveil his 2021 Budget, which is expected to include an extension to the worker furlough scheme but also corporate tax hikes in a bid “to do whatever it takes” to bolster the British economy. Wall Street dips into the red with tech shares weighing on the Nasdaq in particular. President Biden announces the U.S. will have enough vaccine doses to inoculate every American by May. This, as drug maker rivals Johnson & Johnson and Merck join forces to accelerate the country’s rollout. Social distancing restrictions around China are felt in weak demand for services with the sector growing at its slowest pace in 10 months.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 posted its strongest day of trade since June as U.S. stocks continue to rebound amid a pull-back in Treasury yields, with fears of higher interest rates easing. Apple jumps up to 5 per cent on the Nasdaq following a Warren Buffett endorsement in his annual letter to investors and after the reopening of its 270 U.S. stores. Video-calling firm Zoom is also in the green, going higher in late trading after it posts a near-370 per cent jump in Q4 revenues. In France, food giant Danone has succumbed to activist pressure to split its top management roles. Emmanuel Faber stays on as chairman but the CEO position is now vacant. And with the prospect of an increase in global energy demand, OPEC+ leaders are reportedly set to agree to hike supplies later this week, driving crude prices lower.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Last week’s U.S. Treasury yield highs recede with stock futures rising sharply. Sentiment has been partially boosted by higher prospects for stimulus with President Biden urging Senate to pass his $1.9tn Covid-19 stimulus bill after it was approved by the House of Representatives. Legendary investor Warren Buffett warns to “never bet against America” in his annual Berkshire Hathaway shareholder letter. Buffett announced he had bought close to $25bn of the company’s own shares in 2020. Meanwhile, weak export demand and continuing virus outbreaks have reduced Chinese factory activity to its slowest pace in nine months. And in tech news, Swiss-American computer software giant Logitech increases its full-year outlook on a predicted spike in pandemic-related sales.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Equities sell off strongly across Asia with tech stocks being dumped hardest. On Wall Street, the Nasdaq suffers a fall of 3.5 percent - its worst session since October - as the 10-year bond yield rally gathers pace. EU leaders meet virtually to discuss the disorderly rollout of vaccines across the bloc. EC President Ursula Von Der Leyen remains bullish that targets will be met by summer however European Council leader Charles Michel criticises vaccine makers transparency and shaky supply chains. And Swiss construction giant LafargeHolcim says it expects a second-half rebound in demand as global stimulus programmes begin to kick in.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Federal Reserve Chairman Jerome Powell allays U.S. inflation concerns in his testimony to the House, causing Asian markets to jump and Wall Street to pare back losses in another intra-day comeback. Berkshire Hathaway’s vice-chairman Charlie Munger slams “this new bunch of gamblers”, criticising SPACs, Tesla and cryptocurrencies for the increasingly frenzied speculation in the markets. This, as GameStop surges 100 percent in 90 minutes. Asia-focused lender Standard Chartered posts a full-year miss with a 57 per cent fall in profits and a doubling in impairment costs. In the U.S., Johnson & Johnson’s single-shot vaccination is due for FDA approval. Its dose reportedly offers an average efficacy rate of 66 per cent and near-total protection against hospitalisation and Covid-related fatalities.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Whipsawing on Wall Street. The Dow manages to claw back a 360-point loss to end yesterday’s session in the green following Federal Reserve Chairman Jerome Powell’s attempts to ease concerns about higher rates and inflation during a Senate testimony. Bitcoin is also volatile, temporarily falling below the $50k-mark, but recouping some losses after payment company Square invested $170m in the cryptocurrency. In autos news, Tesla shares nosedive by up to 13 per cent on the markets’ rotation away from tech stocks. The electric car maker’s stock is now in negative territory for the year. And Hyundai suffers the world’s costliest EV recall after up to 82,000 cars are deemed susceptible to battery fires.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

HSBC beats earnings expectations despite full-year profit falling by more than a third. Europe’s largest lender is promising to resume its dividend payout this year. Big tech companies weigh on the Nasdaq and S&P but the Dow moves to the upside on wider recovery optimism in the U.S. Tesla CEO Elon Musk is $15bn poorer, losing his title of world’s richest man to Amazon’s Jeff Bezos. The electric car maker shares post their biggest decline since September. British Prime Minister Boris Johnson outlines the country’s “one-way journey” out of national lockdown, citing the success of the UK vaccine rollout. And in Australia, the country ‘refriends’ Facebook after the social media titan reaches a deal with the government over media laws and journalistic content compensation.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The UK is to ease lockdown restrictions with Prime Minister Boris Johnson set to detail his roadmap to recovery. All eyes are on the bond market with the U.S. 10-year Treasury yield hitting highs not seen since this time last year. Boeing grounds some of its 777 planes after a mid-air engine failure on a United Airlines flight causes debris to rain down on a Denver neighbourhood and prompts an emergency landing. HSBC steps up its pivot towards Asia by reportedly relocating a number of executive staff from London to Hong Kong. The UK lender is to announce it is withdrawing its commercial business 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.

U.S. Treasury Secretary Janet Yellen tells CNBC in an exclusive interview that only major stimulus will rouse the American economy following “the worst year for economic growth since WW2.” Yellen also said President Biden’s administration will maintain his predecessor’s trade pressure on China. The GameStop saga comes to Washington with Robinhood CEO Vlad Tenev going up against the House Financial Services Committee. Tenev defended the app’s decision to halt trading of the stock last month. However, he apologised for his company’s role in the market volatility during the retail trading frenzy. Meanwhile, carmakers continue to lament the effects of a chip shortage. We hear from Peter Schiefer, the auto sector chief at German chip-maker Infineon, who tells CNBC he believes the global semi-conductor squeeze is unlikely to be eased any time soon.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

It’s another busy day for earnings in Europe. Credit Suisse pre-tax Q4 profit slumps to a CHF88m loss as a slow post-virus recovery weighs on the lender. However, recent client activity is positively impacting its wealth management arm. Full-year revenue for 2020 at Airbus nose-dives by 30 per cent with an operating loss of €510m. The plane maker will also withhold its dividend this year. Meanwhile, digital discord Down Under after Facebook blocks news-sharing in Australia over a proposed law that will force social media platforms to pay for journalistic content. Australian Treasurer Josh Frydenberg says Facebook’s “heavy-handed” actions will damage its reputation in the country. In the U.S., retail sales spike as consumers spend their stimulus cheques, but the Fed warns economic recovery is far from complete.    See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The recent U.S. rally loses some steam. Meanwhile, the U.S. 10-year hits a 12-month high, with St. Louis Fed President James Bullard telling CNBC that investors are eyeing a “roaring” pick-up in post-pandemic U.S. economic activity. In energy news, the Gulf region’s cold snap is keeping refineries offline while millions suffer power blackouts. Robust commodity prices have led to Rio Tinto posting its best full-year profit in almost a decade. The UK miner plans to deliver a record dividend. In other corporate news, Nestlé sheds its North American mineral water brands to One Rock Capital Partners in a $4.3bn deal. And Berkshire Hathaway has disclosed a slew of new Q4 share positions including Verizon and Chevron.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.