Squawk Box Europe Express

U.S. Treasury Secretary nominee Janet Yellen is to warn that the country is on course for a major recession unless lawmakers “act big” with her Senate confirmation hearing set for today, less than 24 hours ahead of President-elect Joe Biden’s inauguration. The incoming administration has said it plans to reinstate travel restrictions on European and Brazilian passengers lifted by President Trump. In corporate news, food giant Danone is under activist pressure from Bluebell Capital, which is calling for a leadership overhaul citing a slump in share price performance. Meanwhile in tech news, computer accessory maker Logitech has raised its 2021 guidance after posting a near-200 per cent surge in Q3 income on the back of the work-from-home phenomenon. And in Rome, the political chaos continues with Prime Minister Giuseppe Conte facing a key confidence vote in the Senate. The government coalition was split after former PM Matteo Renzi withdrew his party’s support over an EU virus fund rift.See Privacy Policy at h

China’s economic recovery gathers speed with Q4 growth beating expectations at 6.5 per cent. President-elect Joe Biden pledges to immediately repeal President Trump’s climate policies as Washington DC braces for potential violence ahead of Wednesday’s inauguration. In Germany, Armin Laschet wins the vote to become the new chairman of the CDU party and is now the frontrunner to take over from Angela Merkel as Chancellor. Samsung shares slide in Korea on the news that de facto leader vice chairman Jay Y. Lee is to serve a two-and-a-half year sentence for bribery and corruption. And in M&A news, French waste management giant Suez has received a potential takeover proposal from Ardian-GIP following an offer from its principal rival Veolia.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. President-elect Joe Biden has unveiled a massive new stimulus package worth $1.9 trillion dollars. The plan includes new relief cheques to some individuals, in addition to an earlier round of payments included in federal spending measures last month. Fed Chair Jerome Powell said the central bank will eventually raise interest rates and slow its bond-buying programme. But he added these moves will not happen in the near-term. U.S. weekly jobless claims rose to 965,000 last week, worse than forecast and hitting their highest point since August.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Italy is embroiled in political turmoil yet again after former prime minister Matteo Renzi pulls the plug on the Conte government. Renzi removed his party’s ministers from the coalition after a row about EU funding distribution following the pandemic. In the U.S., President Trump becomes the first ever American leader to be impeached twice. Ten GOP members joined Democrats in the House of Representatives to vote for the motion. Chinese December exports rise by more than 18 per cent on the same period last year. In another U-turn, the U.S. Treasury reportedly blocks plans to blacklist some of the biggest Chinese tech firms from markets Stateside. And in France, finance minister Bruno Le Maire has told Canadian retailer Couche-Tard to back off its proposed €16.2bn tie-up of supermarket giant Carrefour, citing concerns over national food sovereignty.    See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. Vice-President Mike Pence rules out invoking the 25th amendment to remove President Trump. The House of Representatives is set to vote on impeaching the president today. In a further crackdown against the outgoing U.S. leader, YouTube has suspended his channel for at least a week in light of the fatal storming of the Capitol building. Deutsche Post DHL enjoys a pandemic-related e-commerce boom, prompting the logistics giant to hike its outlook. Preliminary Q4 profits have jumped by 54 per cent. In retail news, Quebec-based convenience store firm Couche-Tard is reportedly eyeing French supermarket chain Carrefour in a tie-up that could be worth up to $50bn. And the U.S. has revamped its vaccine strategy with states asked to issue the dose to citizens aged 65 and over.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. House of Representatives moves to introduce an article of impeachment against President Trump which it plans to vote on tomorrow, a week after the deadly storming of the Capitol. As a result, Big Tech firms join other corporates in suspending political donations. However, social media giant Twitter sees shares nosedive over a growing backlash against the permanent banning of the U.S. president from its platform, along with more than 70,000 other accounts. German Chancellor Angela Merkel weighs in on the purge, calling it a “problematic” violation of the right to free speech. Goldman Sachs brings forward its $65 call on the oil price from the early end of Q2. Its commodities chief Jeff Currie tells CNBC that by 2022, oil is set to rebound to levels higher than before the pandemic.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Senior Democrats prepare to proceed with articles of impeachment against President Trump following last week’s deadly storming of the U.S. Capitol. Markets Stateside saw record highs on Friday despite the events. But futures point to a lower open this week after a disappointing jobs report for December while the 10-year Treasury yield rises to 1.1 per cent. Meanwhile, fallout from the White House ban against companies with connections to the Chinese military continues, as top Wall Street banks look to delist up to 500 structured Hong Kong market products. Both China and the U.S. suffer a record number of Covid-19 cases while UK health authorities warn the NHS is buckling under the weight of hospitalisation numbers. And, we speak exclusively to Daimler CEO Ola Kallenius who says the pandemic will affect H2 demand but is confident of delivering a sales increase for FY 2021.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The recently confirmed Democrat-majority Congress has boosted U.S. equities on hopes of further stimulus. President Trump promises a peaceful and orderly transition of power following Wednesday’s deadly storming of Capitol Hill. Tech and autos join forces with Chinese search giant Baidu linking up with Geely to create their own electric vehicles. Hyundai and Apple are also set to tie up on an EV project. Elon Musk overtakes Amazon’s Jeff Bezos to become the world’s richest man with a fortune of more than $185bn. This, as Tesla’s shares outgrow Facebook to become the S&P 500’s fifth-most valuable company. And in pharma news, Pfizer’s new Covid-19 vaccine appears to be effective against a number of new and infectious strains.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

There are chaotic scenes on Capitol Hill as hundreds of Trump supporters storm Congress, forcing both Republican and Democrat lawmakers to flee the chamber during a session to confirm Joe Biden as the next president. Congress was eventually reconvened after one woman died from an alleged police gunshot wound and three others passed away due to medical emergencies. This, as Democrats secured a second Georgia Senate seat and control of Congress following the victory of John Ossoff in run-off elections. In Hong Kong, online retailers Alibaba and Tencent see shares fall on reports that the U.S. is mulling whether to add them to a Chinese firm blacklist which already include three of the country’s biggest telcos. And in Europe, Moderna becomes the second Covid vaccine to gain approval by Brussels. The bloc has ordered 160m doses.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Markets eye the Georgia Senate race which still remains too close to call. Futures see-saw and the 10-year treasury yield is up 1 per cent for the first time since March. Meanwhile, President Trump signs an executive order to ban 8 Chinese apps, renewing trade tensions between Washington and Beijing. China sees services activity slide to a three-month low but it is still expanding with several regional outbreaks of Covid-19 hampering recovery. And in commodities, Saudi Arabia makes a surprise voluntary cut of one million barrels of oil a day, sending prices soaring to more than $50 for the first time since February 2020.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The first trading day of 2021 sees U.S. equities nosedive. The decline is the S&P 500’s biggest since 2016 while the Dow suffered its worst open in five years. All eyes are on the state of Georgia where voters go to the polls to decide control of the U.S. Senate. Meanwhile in the UK, Prime Minister Boris Johnson is banking on a successful roll-out of the Covid vaccine after plunging England into a third national lockdown with schools and universities shut. And Hong Kong markets surge higher after the NYSE goes against President Trump’s executive order to delist three of the largest Chinese telcos. In energy news, Opec and its allies disagree over output hikes. Saudi Arabia wants to hold firm but Russia says it’s time to ramp up production.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. President Trump appears to try to convince Georgia’s state election head to overturn the result over alleged voting irregularities. Meanwhile, China sees manufacturing activity expand but fails to reach the decade high of November. And in Europe, fresh lockdowns are looming while Japan is considering a new state of emergency. But Britain’s Health Secretary Matt Hancock claims today marks a ‘pivotal moment’ in the country’s fight against the virus as it becomes the first to rollout the AstraZeneca-Oxford University vaccine, with 530k doses available today. UK Prime Minister Boris Johnson urges people to “think big” following the country’s official withdrawal from the European Union.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

UK Prime Minister Boris Johnson signs the Brexit trade agreement after MPs overwhelmingly approved the deal. The UK is set to leave the EU at 11pm tonight. Soaring Covid cases and deaths across the UK force a further 20 million people into tighter restrictions. And in China, equities end 2020 on a high on the back of expanded December factory activity but overall growth slows on higher costs. After seven years of trade talks, Brussels and Beijing strike an investment deal which will see European companies receive better access to Chinese markets.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The UK becomes the first country to approve AstraZeneca and Oxford University’s vaccine candidate, a potential game-changer for the pandemic recovery. A Colorado man tests positive for the UK variant of the Covid virus. President-elect Joe Biden says the U.S. vaccine rollout is falling behind schedule. U.S. markets close lower following recent record highs after Senate Majority Leader Mitch McConnell stymies a vote on improved stimulus checks. In tech news, Intel shares are up after activist investor Third Point advises the chipmaker on ‘strategic investments in order to claw back market share. Spain sees the creation of its fifth-largest lender as the boards of Unicaja and Liberbank approve the merger.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump signs off on the $900bn virus stimulus package, sending U.S. markets soaring to fresh record highs. In Brussels, EU ambassadors unanimously approve the Brexit trade deal with British MPs set to vote on the agreement tomorrow. Alibaba shares rebound in Hong Kong after losing almost €116bn in the previous two sessions as Chinese regulators crackdown on Jack Ma's empire and its subsidiary Ant Group. And in the UK, the AstraZeneca-Oxford University Covid-19 vaccine is due to be approved as the Europe-wide vaccination rollout gathers pace.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Britain and the EU are expected to unveil a post-Brexit trade agreement today. The deal document is said to be around 2-thousand pages, with both sides having until December 31st to get Parliamentary approval. President Trump has vetoed a bipartisan defense bill, raising fears of a government shut down amid the country's vaccine roll-out. Congress will return on December 28th to decide whether to override the President's veto. Shares in Chinese tech giant Alibaba fell sharply after China's market regulator said it will launch an investigation into the company over antitrust concerns. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump has said he may not sign the 900 billion dollar bipartisan relief package, calling the bill a "disgrace." He is demanding changes to several key aspects of the bill, including an increase in direct payments to Americans. British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen have intensified direct talks in a bid to try and reach a compromise on fishing rights. France has re-opened its border with the UK, allowing freight and EU travellers with a negative Covid test to move between the two countries once again. This as the European Commission recommends the bloc review its blanket ban on travel from 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 Jones claws back heavy losses of up to 2 per cent to close higher following fears of a new Covid variant spreading. U.S. Congress finally passes the latest virus relief bill worth $900bn, sending it to President Trump to sign off on – it’s the first tranche of federal funding since spring. London holds emergency talks with Paris in a desperate bid to reopen the Channel, while Prime Minister Boris Johnson insists the UK can cope with a no-deal Brexit. And in tech news, Apple overshadows Tesla’s first S&P 500 trading day with the announcement it will produce its own electric vehicles by 2024. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The UK government has warned the harsh new restrictions in London and across South East England could be in place for months. Prime Minister Boris Johnson imposed Tier 4 measures on Sunday morning, closing all non-essential shops and curbing travel in and out of the area. A number of European countries have banned travel from the UK to prevent the spread of the new coronavirus variant. Italy, Belgium, the Netherlands, Austria and Germany have all suspended flights in and out of Britain. Congress has finally agreed on a $900bn stimulus package, after several months of failed talks. The bill will provide direct payments and unemployment aid to millions of Americans impacted by the pandemic.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.K. Prime Minister Boris Johnson has warned talks over a Brexit trade deal are in a "serious situation." This, after a phone call with EU Commission President Ursula von der Leyen, who added "big differences" remain between the two sides despite progress on several key issues. French President Emmanuel Macron has a fever and a cough after he tested positive for coronavirus. That's according to the Elysee Palace, which says the President will isolate for a week while continuing to work remotely. The U.S. Food and Drug Administration's vaccine panel has overwhelmingly backed Moderna's vaccine candidate for emergency use - a move that could see it distributed for public use as soon as next weekSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.