Squawk Box Europe Express

The U.S. Federal Reserve promises to maintain the pace of its bond-buying programme to support the country’s economy until “substantial” progress is made in the recovery. This, as Chairman Jerome Powell warns of an uncertain half-year outlook. Meanwhile, Congress sees stimulus progress with lawmakers inching towards a $900bn virus rescue package. Markets Stateside see a mixed session with the Nasdaq soaring to a new record high. The U.S. Treasury labels Switzerland a currency manipulator, saying the Swiss National Bank has kept the CHF lower for trade leverage purposes. The SNB has rejected the allegations. British MPs may be recalled from holiday to parliament early next week to discuss and vote on Brexit trade talks as Brussels signals a possible way out of the impasse.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

There are significant hopes for a U.S. stimulus package after Senate Majority Leader Mitch McConnell said lawmakers are honing in on a rescue deal. Berkshire Hathaway CEO Warren Buffett tells CNBC this agreement by Congress is paramount to save small and medium-sized businesses. The U.S. Federal Reserve is expected to improve economic forecasts during its December meeting but is likely to stop short of expanding the bond-buying programme. In Europe, the ECB has asked banks to limit dividend payouts until September 2021 but eases restrictions on payouts for lenders across the euro zone. And in tech news, China’s biggest chip maker SMIC sees shares plunge after the co-CEO threatens to resign and the stock is removed from the MSCI index over U.S. blacklisting.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

COVID-19 infection rates continue rising, putting New York City at risk of a full lockdown, while London enters tougher restrictions after being moved into Tier 3. Up to six million doses of Moderna’s vaccine are set to be distributed across the U.S. pending FDA approval while the European Medicines Agency admits hackers have accessed information on the drug. The U.S. Electoral College has confirmed Joe Biden as the next President. The Democrat candidate criticised President Trump’s attempt to overturn the election’s result. In autos news, Volkswagen CEO Herbert Diess has cemented control of the German car giant with the backing of the board but has so far failed to agree a contract extension.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The UK and the EU have agreed to "go the extra mile" with Brexit trade talks, sending sterling higher. This, after Commission President Ursula von der Leyen and British Prime Minister Boris Johnson held a phone call on Sunday. The UK will revert to WTO trading rules if a deal isn't struck before December 31, while parliaments on both sides will also need to ratify any deal. Germany will go into a full lockdown over the Christmas period amid a rise in coronavirus deaths and infections. Non-essential shops and schools will close across the country starting on Wednesday. The vaccine rollout is now underway in the US, after the FDA granted an emergency approval for the Pfizer and BioNTech vaccine. The US government plans to deliver up to 3 million doses in the first 24 hours.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Prepare for a 'no-deal' Brexit - that's the warning from British Prime Minister Boris Johnson as Brussels adopts emergency measures to keep trade flowing if talks collapse. European leaders unlock €1.8 trillion in recovery funds after reaching a deal with Poland and Hungary. Shares in Airbnb double in their debut day of trade, at one point valuing the group at over $100 billion in the biggest U.S. IPO of 2020. Disney bets on its streaming platform, as the entertainment giant announces 10 new Marvel and Star Wars shows during its Investor Day, while raising prices for Disney plus. A group of FDA advisors vote in favour of authorising Pfizer and BioNtech's COVID vaccine for emergency-use, in a move that could see the drug rolled out across America within days.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Brexit dinner date fails to break the deadlock, as Britain's Boris Johnson and EU Commission chief Ursula von der Leyen give the two sides until Sunday to reach an agreement, sending sterling lower. European leaders are optimistic they can unlock €1.8 trillion in recovery funds after Germany strikes a deal with Hungary and Poland to overcome their differences on the bloc's budget. The ECB is expected to provide a fresh injection of stimulus, expanding and extending its bond buying plan as Deutsche Bank CEO Christian Sewing tells CNBC low rates are still hurting profitability. British and American regulators look into Pfizer and BioNTech's vaccine after two adverse allergic reactions, while the companies reveal hackers have stolen data on the drug in Europe. Airbnb prices its IPO at $68 a share - above its target range, while DoorDash shares surge over 80% in its debut day of trade, valuing the delivery group at $71 billion.See Privacy Policy at https://art19.com/pri

UK Prime Minister Boris Johnson heads to Brussels for an evening dinner meeting with EC President Ursula Von Der Leyen in an attempt to break the Brexit deadlock. This, after London scrapped the law-breaking elements of the Internal Market Bill. In the U.S., equities see record highs while treasury yields sink to new lows. JPMorgan CEO Jamie Dimon tells CNBC that he wouldn’t touch treasuries “with a ten-foot pole” right now. And there are reports that Softbank CEO Masayoshi Son is buying back shares in a bid to take the investment titan private.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Brexit talks are faltering once more with new demands from Brussels souring the mood in London. At the eleventh hour, France’s President Macron has reportedly intervened over fishing rights and state aid, sparking alarm in Downing Street. Oil prices surge as Opec+ comes to an agreement to relax output cuts in the New Year on an improved demand outlook following second-wave lockdowns. In the U.S., House Speaker Nancy Pelosi and Senate Majority leader Mitch McConnell are once again locked in talks in a bid to push through a bipartisan stimulus bill to release more virus aid and avoid government shutdowns. After the euphoria of the UK’s approval of Pfizer’s Covid vaccine earlier this week, the U.S. drug giant sees its shares fall after supply problems force it to slash its dose target in half.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump is set to receive a bill to sign off on delisting certain Chinese companies from U.S. stock markets, following a House vote unanimously supporting the law. German travel firm Tui sees shares dip after receiving its third state bailout following mounting virus-related losses. In London, the FTSE closed sharply higher on improved sentiment around yesterday’s Pfizer/BioNtech vaccine approval as well as the expiry of the UK’s second lockdown. And we hear from U.S. Federal Election Commissioner Ellen Weintraub who says that social media giants Facebook and Twitter could have taken stronger measures to combat misinformation online before last month’s U.S. election.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Highs on Wall Street, but deadlock in Washington DC. U.S. Senate majority leader Mitch McConnell rejects a bipartisan stimulus plan, while Treasury Secretary nominee Janet Yellen warns that failure to act will cause an “American tragedy”. U.S. AG William Barr has announced the DoJ has found no evidence of voter fraud in last month’s U.S. election. In corporate news, ARM CEO Simon Segars tells CNBC that Nvidia’s $40bn takeover deal is possible despite internal divisions.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Unicredit CEO Jean-Pierre Mustier steps down after clashing with the Italian bank’s board over his restructuring plan and pressure to acquire Monte Dei Paschi Di Siena. OPEC members fail to reach an agreement on output which delays a meeting with other oil producers and pushes crude prices lower. Zoom shares dip in after-hours trading after the video app said that surging demand during lockdown has increased costs, offsetting its better-than-expected Q4 results.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Manufacturing activity in China soars to its fastest rate in three years and services PMI hits an 8-year high. Meanwhile, the White House is set to blacklist Chinese chipmaker SMIC and oil major CNOOC for alleged ties to the Chinese military. This, as Congress is also looking to vote to tighten rules on Chinese companies seeking a U.S. market listing. Black Friday numbers are in Stateside, with online sales surging by 22 per cent to $9bn – the second-largest spending day on the web in American history. In M&A news, S&P Global is reportedly looking to buy London-based data firm IHS Markit for $44bn in what would be the largest merger of 2020.    See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese industrial profits surge by almost 30 per cent in October as the manufacturing sector clocks its sixth consecutive month of growth since the pandemic. Hungary and Poland dig their heels in over ‘rule of law’ concerns to deny resolution over the EU budget and potentially delay recovery funds. Polish PM Mateusz Morawiecki warns member states they are threatening the break-up of the bloc. U.S. markets point to a calm open after Thanksgiving, despite President Trump claiming vaccine delivery for emergency workers and seniors can begin next week. Trump also said he will concede the White House if the Electoral College confirms its final results early next month.  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 see a Thanksgiving sell-off. Meanwhile, President-elect Biden’s call for people to observe Covid rules is met with a mass holiday travel getaway across the country. This, as rising jobless claims came in worse than expected. In Europe, ECB Vice-President Luis De Guindos has told CNBC that while bank profits on the Continent will be temporarily weak, the sector remains robust. UK markets closed lower yesterday following Chancellor Rishi Sunak’s spending review where he warned of an extended economic emergency. Britain’s GDP for 2020 is set for its biggest contraction in 300 years. And following Monday’s markets euphoria over the AstraZeneca/Oxford vaccine announcement, the head of the White House virus taskforce has now voiced doubts over the drug’s trial datasets. In M&A news, Salesforce is reportedly hoping to snap up workplace app Slack, pushing shares up by 20 per cent.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-

The Dow breaks the 30,000-point barrier for the first time ever with the index set to enjoy its best month since 1987. President Trump calls it “a sacred number”. Meanwhile, President-elect Joe Biden tells NBC the White House is sincere in its transition efforts and that the transfer of power will continue smoothly. In France, President Macron warns citizens to do everything possible to avoid a third Covid-19 wave as he outlines easing restrictions in the run-up to Christmas. UK Chancellor Rishi Sunak will unveil a £4.3bn spending plan to buffer mass unemployment as public borrowing hits levels not seen since WW2. And airlines around the world are likely to lose $160bn over 2020-21. We hear from the boss of IATA who says that not enough is being done to bolster the sector as it awaits mass vaccine rollouts.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump gives ground, agreeing to provide assistance to the Biden transition team by instructing a Federal agency to brief and fund the incoming administration. Dow futures jump on the news and the Russell 2000 small-cap index hits a new record high. Former Federal Reserve chair Janet Yellen is widely tipped to become the first female U.S. Treasury Secretary, while former U.S. Secretary of State John Kerry is also nominated to take on the role of climate czar as the Biden administration seeks to rejoin the UN Paris Agreement.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

G20 leaders meet virtually and call for global, equitable access to vaccine programmes and continued economic support. Host Saudi Arabia has lauded the stimulus measures enacted by governments around the world. Vaccine optimism has U.S. futures pointing to the upside along with opening calls in Europe, this despite a surge in cases in the States. Germany may begin vaccine roll-outs as soon as December and in Spain from January. And President-elect Joe Biden is to name his cabinet choices tomorrow. Former deputy national security advisor under President Obama, Anthony Blinken, is reportedly set to become Secretary of State.  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 Steven Mnuchin calls for an end to certain virus support programmes, causing futures to dip. The Fed, however, pushes back against wrapping up business support measures. President-elect Joe Biden says he will name a new treasury secretary around Thanksgiving and vows not to lock down the economy. In Europe, Brexit negotiations are set to resume remotely after a member of the EU delegation tested positive for Covid. Meanwhile, the WHO plays down any efficacy of virus treatment drug Remdesivir.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 close sharply in the red on the back of New York Mayor Bill De Blasio’s public school closures in response to rising Covid-19 cases in the city. This, as the overall Covid-related death toll in the U.S. reaches 250,000. JPMorgan CEO Jamie Dimon says continued caution is needed despite the news that the Pfizer-BioNtech vaccine deliveries could begin by Christmas. Meanwhile, global corporate debt is set to hit a record $277tn by year-end with the IIF warning that emerging economies will be hardest hit. And CNBC hears from Senator Elizbeth Warren and Obama Foundation co-chair Valerie Jarrett who urge a solution to the deadlock in the U.S. presidential transition.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street closes in the red after disappointing retail sales in the U.S. renew calls for more fiscal support, with Democrats urging Republicans to return to the negotiating table. Legendary investor Masayoshi Son tells CNBC he is selling off Softbank assets to hoard cash in a bid to mitigate any Covid-related ‘worst-case scenario’. Facebook’s Mark Zuckerberg and Twitter’s Jack Dorsey appear before the Senate to defend their U.S. election coverage and moderation of content. A White House report warns of a renewed ‘aggressive and unrelenting community spread’ of Covid-19 across America. And in the latest M&A news, Deutsche Boerse announces it has bought a $1.8 bn share in Institutional Shareholder Services.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.