Squawk Box Europe Express

The global bond rout deepens as fears over fiscal deficits and rising inflation fuel a multi-decade high in government borrowing costs. US Treasury Secretary Scott Bessent, however, is not concerned. Oil prices continue to climb as the U.S. ramps up strikes on Iran, while Tehran retaliates with attacks on Gulf States. Volkswagen’s leadership will propose ending production at four German factories from 2031 at a meeting later this week. Speaking to CNBC, chief negotiator of the IG Metall workers union accuses the carmaker of going back on past agreements. In his first appearance at the House of Commons as...

U.S. Treasury Secretary Scott Bessent downplays concerns as the global bond sell-off deepens with the U.S. 10-year treasury yield hitting a 20-month high. The G20 summit in North Carolina leaves European officials astonished at the Russian Finance Minister’s attendance, but Bessent says there will be no sanction relief until the war in Ukraine is over. Shein struggles in its Hong Kong IPO, as the valuation of the fast-fashion giant falls by some three-quarters since its private market peak in 2022.

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Markets await U.S. Federal Reserve Chairman Kevin Warsh’s debut keynote speech at the Jackon Hole Symposium later today. We hear from Cleveland and Kansas City Fed presidents Jeff Schmid and Beth Hammack about their concerns regarding U.S. consumer inflation and the interest rate path. Nvidia notches the second-largest market cap move on record – almost $500bn on the Nasdaq – pushing its share price up by almost 9 per cent following stellar quarterly results. Prospective presidential candidates in France clash in the election cycle’s first debate with the centrist parties trailing both sides of the political spectrum.

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Nvidia posts another quarterly earnings beat, predicting a 70 per cent surge in sales growth for 2027 and shrugs off concerns over circular financing. CEO Jensen Huang tells CNBC, A.I. growth is accelerating and finally becoming productive. CNBC hears from sources that Anthropic has struck a $45bn cloud deal with Nscale while there are reports Nvidia is set to take over Hugging Face who’s platform was briefly hacked by OpenAI’s rogue agent several weeks ago. As global bond market volatility continues, all focus turns to Jackson Hole, Wyoming where U.S. Federal Reserve Chairman Kevin Warsh will deliver his...

Nvidia earnings are in focus as the AI giant hopes to prove the bears wrong about its $500bn AI financing push. There are expectations of a 100 per cent quarterly surge for the company. OpenAI’s chief of data centres, Chris Malone, has quit the company to become the third high-profile departure this month as IPO speculations abounds. Canada imposes tariffs on up $20bn of U.S. goods, escalating the trade war between the two neighbours.  

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U.S. Treasury Secretary Scott Bessent has warned of secondary sanctions on any third parties attempting business with the Islamic regime, including China. Bessent also insists the Treasury’s auction schedule would continue apace even amid the department’s buybacks. Germany’s finance minister Lars Klingbeil has blamed the global spike in bond yields on the conflict in the Gulf. In crypto news, Bitcoin surges past $80,000 for the first time since mid-May on the back of increased inflows of spot Bitcoin ETFs.

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U.S. futures dip ahead of Nvidia earnings and U.S. Federal Reserve Chairman Kevin Warsh’s debut speech at this week’s Jackson Hole Symposium. Both events could have significant impacts on how markets trade for the rest of the year. U.S. Treasury Secretary Scott Bessent vows to impose crippling new sanctions on Iran and any ‘enabling’ countries ahead of a widely anticipated press conference later today. Nordic and Baltic national leaders pledge continued military and financial support for Ukraine as the country marks Independence Day. UK Prime Minister Andy Burnham is also due to travel to Kyiv tod...

Treasury yields have rebounded despite yesterday’s buyback intervention relief from U.S. Treasury Secretary Scott Bessent. In an exclusive interview, Bessent told CNBC he is prepared to increase the operation beyond $4bn. The bond sell-off has impacted the equities markets which closed deep into negative territory at the end of Thursday’s sessions. European futures are flat following a down week on the Continent. In crypto news, Bitcoin surpasses the $70,000-mark, adding approximately 20 per cent this week. We hear from Coinbase CEO Brian Armstrong who says the sector is now set for another bull market. And in banking news...

There’s some relief in the global government bonds market thanks to U.S. Treasury pledges to double buybacks for longer term bills. President Trump resumes criticism of the Federal Reserve for high interest rates amid rising debt burdens. Trump also escalates the economic pressure on Iran, threatening any third-party country doing business with the Islamic Republic and preparing to significantly increase sanctions on the country. ECB President Christine Lagarde says U.S. moves away from the global economic order are having a negative impact on eurozone growth. She urged policy makers not repeat the mistakes of the dotcom bo...

The global rout in bonds eases somewhat but yields on sovereign debt remain at highs not seen for decades. Investors now turn their attention to UK inflation data and last month’s FOMC minutes. Equities also sell off Stateside and in Asia, especially in chip stocks, while European futures are firmly in the red. Chinese humanoid developer Unitree sees its shares balloon by more than 600 per cent on its Shanghai market debut as China showcases its ambitions for its national robotics industry.

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President Trump threatens to bomb ally Oman should it impede efforts to re-open the Strait of Hormuz following yesterday’s expiration of the MOU with Tehran with no immediate signs of diplomatic efforts from both sides. Brent moves to beyond $90 a barrel as a result while equities and bonds suffer losses. The U.S. 30-year T-bill surges to its highest level since 2007. The ECB has warned U.S. Big Tech stocks are due a correction and the euro zone’s households, insurers and pension funds are all vulnerable to any potential pull-back.

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European futures are set to start in the green after snapping a four-week winning streak. Investors are anticipating UK employment and inflation data, flash PMIs and the latest FOMC meeting minutes later this week. The U.S.-Iran MOU expires later today with the impasse forcing President Trump to concede Americans will have to contend with higher fuel prices. Heatwaves cause wildfires in Belgium while the level of the Rhine in Germany falls to a new record low. Berkshire Hathaway increases its stake in Alphabet. The tech giant is now its third-largest holding. Form 13F filings in the U...

U.S. inflation concerns ease with producer prices coming in unchanged for July, cutting the odds for a September Fed hike. South Korea’s KOSPI surges further following last month’s sell-off. European futures are in the green following an otherwise lacklustre week but the continent is poised for one of its strongest earnings seasons in years. The U.S. 30-year T-bill auction racks up the highest borrowing costs in 25 years – up at 5.2 per cent – as investors examine Washington’s spiraling debt pile.

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July’s U.S. inflation slows down to come in at 3.4 per cent with the core print falling to 2.5 per cent. Markets now expect the September rate decision to remain on hold. The CEO of Norway’s sovereign wealth fund says he is cautious about AI funding even though the fund’s gains are largely derived from tech. NBIM’s Nicolai Tangen tells CNBC he is still optimistic about economic resilience around the world in the long term. Shipping titan Maersk boosts its FY guidance on the back of a robust volume growth outlook . Rival carrier Hapag-Lloyd sees an increase...

Coreweave shares surge after the AI cloud provider posts a beat on both the top and bottom line. Data centre infrastructure firm Super Micro is also up on positive forecasts. Investors await the latest U.S. inflation data with the headline number expected to be 3.4 per cent. There is no clear agreement about the Federal Reserve’s next move. Oil inches higher as attacks on shipping in both the Strait of Hormuz and the Bab el-Mandeb raise fears of escalation as well as increase concern over crude supply chains. A top Iranian security official doubles down on Tehran’s dema...

Nvidia makes a massive financing push, teaming up with top Wall Street bosses who pledge more than half a trillion dollars in capital. CEO Jensen Huang tells CNBC that his company’s chips platform will become its own asset class. Hopes of a new deal over the Strait of Hormuz fade with President Trump claiming the U.S. fully controls the waterway and that it should be Iran who pays the U.S. reparations for 50 years of ‘damage’. Crude inches higher and Asian equities remain mixed while futures in Europe and the U.S. are flat.

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Iran raises the price for reopening the Strait of Hormuz, demanding U.S. reparations under June’s memorandum of understanding. Yemen’s Houthi rebels hit a Saudi oil refinery just days after Riyadh signs a mutual regional defence pact with Turkey and Pakistan. Berkshire Hathaway’s Greg Abel pumps almost $20bn in investments in the second quarter, including almost $10bn in Alphabet.

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The Iran draft plan to reopen the Strait of Hormuz reportedly prohibits vessels from ‘hostile’ states including the U.S. and Israel. A U.S. official tells CNBC that any temporary passages must be unimpeded for all. In tech news, Alphabet raises $25bn in debt to fund A.I. projects while Kansas City Federal Reserve Jeff Schmid asks whether the sector is becoming another ‘too big to fail.’ China sees exports rise almost 24 per cent in July on the back of strong demand for its chip components. Meanwhile, President Trump imposes a 15 per cent tariff on poly-silicone products to target s...

Big Tech moves were in focus during Wall Street’s session on Wednesday as DeepMind CEO Demis Hassibis’ departure drags Alphabet down. SpaceX shares were also down following the company’s debut earnings with investors now awaiting the first expiration of its insider lock-ups earlier today. Germany’s Commerzbank posts an almost 100 per cent jump in quarterly net profit beating expectations ahead of a potential takeover from Italian lender Unicredit. Siemens hikes its FY guidance as orders surge by almost 14 per cent on strong demand from infrastructure and data centres. CEO Roland Busch tells CNBC every one of its units is...

High investment costs outweigh SpaceX’s earnings beat with investors concerned about AI capex doubling from the previous quarter. Asian equities are in the green, following fresh record highs on Wall Street yesterday. Oil retreats as U.S. Treasury Secretary Scott Bessent tells CNBC he sees movement in opening the Strait of Hormuz. In pharma news, Novo Nordisk shares dive in the U.S. session despite the drug maker hiking its guidance due to investor fears over sales of its Wegovy fat loss pill.  

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BP reports earnings amid continued price volatility and the company looks to market its North Sea assets. President Trump says talks with Iran have resumed despite Tehran denying the two sides are negotiating. Oil inches higher following a three-week low and President Trump slams IOCs for windfall profits in the sector and urges retail price cuts. The White House is due to host top A.I. company bosses later today to discuss cyber security as Palantir CEO Alex Karp attacks the leading labs over data protection.

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Oil prices slump after President Trump announces new Iran talks are imminent, citing pressure from Gulf allies to hold off on a massive round of airstrikes. European and U.S. futures are in the green ahead of the first trading session of August. In Japan, the yen stabilises after U.S. and Japanese authorities confirm joint market intervention. Reports emerge of a $400bn mega-merger between AstraZeneca and Bristol Myers-Squibb which would potentially be one of the largest deals in the pharma sector ever.  

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The Kospi rollercoaster continues - Korea's main stock index records its best day ever as SK Hynix and Samsung increase their valuations by more than a quarter. The Nasdaq breaks a 6-day losing streak as Microsoft adds the most to its market cap in a single day of any company, ever. Elsewhere, the Bank of England delivers its fifth hold in a row, with the MPC voting 6 to 3 to keep rates unchanged. And Italian defence giant Leonardo upgrades its profit and order forecasts for the year as new contracts surge 45-percent in the first half.

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American equities plummet and borrowing costs hit their highest in nearly two decades as investors find little to like in the Fed's fifth 'hold' in a row. But, Chairman Warsh hints that a hike could be on the way. Elsewhere, investors digest a mixed bag of tech earnings from across the pond. Microsoft's cloud growth accelerates at its fastest pace in nearly five years, but Meta takes a hit as Mark Zuckerberg doubles down on AI spending. And strong EV demand boosts Renault sales in the first half, as the French carmaker withstands pressure from its Chinese peers.

Another day, another circuit breaker on the Kospi: AI capex fears spill across Asian equity markets, on the back of a five-percent slump in Nvidia shares that sees Apple regain its crown as the world's most valuable public company. In other news, oil prices extend yesterday's declines amid hopes for some kind of resolution to the Iran conflict. LVMH gets a lift as sales inch higher in the second quarter, with US strength helping the company to shrug off weaker demand in Europe. And Mercedes-Benz sees a boost in second quarter operating profit but warns of intense competition and s...

Oil prices plunge as Iran reportedly says it will hold off on strikes as long as the US does the same, while Trump advisers fear over munitions supplies. Calming hostilities in the Middle East helps lift equity futures on both sides of the Atlantic - investors brace for a big week of corporate earnings and central bank decisions. Elsewhere, CXMT becomes the biggest China-listed company by total market cap in its blockbuster IPO - surging more than 500-percent in Shanghai. And French President Emmanuel Macron is set to hold a crisis cabinet meeting today, as hundreds of thousands of...

Middle East concerns push Brent to $100 a barrel while equity and debt markets see sell-offs on both sides of the Atlantic. European stocks suffer their biggest losses in a fortnight with German yields spiking to their highest level in 15 years. President Trump launches his latest round of tariffs with most major trading partners affected. Eu foreign policy chief Kaja Kallas has called the measures a ‘negative surprise’. German software giant SAP pares back its FY guidance but its cloud order backlog is up by 26 per cent. Meanwhile, VW shares are lower in pre-market sales after the car maker predicted 2026 sales...

Alphabet shares pare back overnight as investors scrutinise its ever-increasing capex plans. Tesla is also down after missing on earnings while free cash flow turns negative. Elsewhere, Unicredit raises its outlook after posting a beat on both the top and bottom lines as CEO Andrea Orcel tells CNBC the bank is firing on all cylinders. And forex headwinds take a bite out of Roche's first half sales, but the Swiss drugmaker confirms its full-year targets.

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UK inflation data hits the tape - new Prime Minister Andy Burnham vows to practice fiscal discipline, scrapping VAT on electricity bills and facing calls to extend tax breaks for young workers. Elsewhere. three tankers carrying Saudi oil are forced to U-turn in the Red Sea amid Houthi threats, as a new front opens up in the US-Iran conflict. On the tech front, Samsung is reportedly in talks to invest up to 1 billion euros in French AI firm Mistral. And Santander says it's on track to meet its targets for the year after underlying net profit jumps by nearly...

New UK Prime Minister Andy Burnham pledges immediate action on the cost of living: scrapping VAT from electricity bills. That, after announcing John Healey as his surprise pick for Chancellor. Elsewhere, Yemen's Houthis impose a naval embargo on Saudi Arabia, while President Trump warns Iran "will pay" for the deaths of US soldiers. And Novartis reaffirms its guidance after beating on the top and bottom lines, with second quarter net sales coming in at almost 14-and-a-half billion dollars.

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Andy Burnham is set to enter No. 10 later today to become the UK’s fifth prime minister in 4 years. We are live at Downing Street for the latest. Brent crude surpasses $90 per barrel, up 2.9 per cent in session as the U.S. targets Iran for a ninth consecutive night. Three U.S. troops have been confirmed dead following Iranian retaliatory strikes in Jordan and Iraq. Ryanair posts a miss for the first quarter, down by more than a third on the year. Passenger revenue slumps and jet fuel spikes with prices trending lower in the current quarter.  

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Asian markets suffer a sell-off as jitters over the AI rally persist Stateside. The U.S. hits Iran for a sixth consecutive day, targeting bridges in the south while Tehran retaliates with a barrage of missile strikes at U.S. positions across the Gulf. The handover process of power within the UK Labour party begins today with Andy Burnham set to take over as Prime Minister on Monday.

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Taiwanese chip giant TSMC smashes another record with an 80 per cent surge in Q2 net profits on the building wave of demand for its AI processors. Further exchanges of fire between the U.S. and Iran in the Persian Gulf could reportedly prompt President Trump to expand operations in the region. Trump remains confident the conflict can be concluded in the near future. Sterling hits a yearly high despite reports incoming prime minister Andy Burnham is set to make Shabana Mahmood Chancellor of the Exchequer as Sir Keir Starmer attends his final PMQs. UK GDP for May ekes out...

ASML smashes Q2 estimates and hikes its FY guidance as huge A.I. demand offsets disappointing performance in the Chinese market. President Trump reverses his call for fees on tankers leaving the Strait of Hormuz under U.S. naval protection following investment pledges from GCC nations as a means of compensation. U.S. CPI slows more than expected as energy prices fall. Newly appointed Federal Reserve Chairman Kevin Warsh makes his first Congressional appearance and promises to keep his position independent from the White House while bringing down inflation. In luxury news, Richemont enjoys a 20 per cent boost in...

The U.S. and Iran trade strikes for a third consecutive night with President Trump declaring American forces are blockading the Strait of Hormuz and demanding a 20 per cent levy on all cargo. Trump says he remains positive on being able to reach a peace deal with Tehran. The renewed conflict pushes Brent to its biggest one-day surge since the Covid pandemic. The UK and Switzerland sign a services trade deal ahead of Rachel Reeves’ last Mansion House speech under Keir Starmer’s premiership. We speak top Trade Minister Chris Bryant who predicts the incoming Burnham government will seek ever...

Crude prices rise as the U.S. and Iran exchange fire with both sides claiming control over the Strait of Hormuz. SK Hynix shares fall in Asian markets following the chip maker’s $26bn U.S. ADR listing. Tech selling and Middle East uncertainty push Asian equities lower and trigger circuit-breakers on South Korea’s KOSPI. European futures are also in the red following a four-day winning streak. Nippon Paints offers to buy Akzo Nobel’s decorative paints arm for €7.5bn following a previous rebuttal for the Dulux-maker’s entire business.

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SK Hynix’s U.S. listing raises $26.5bn with investor demand said to be seven times oversubscribed. The Nasdaq listing is the largest by a foreign company on Wall Street. Technical talks between Washington and Tehran are ongoing despite this week’s tit-for-tat attacks. Crude is set to break a four-week losing streak with the recent tensions threatening to trigger concerns about supply from the Gulf. In Germany, Volkswagen cuts capacity and slashes its model line-up in half but pulls back from announcing 100k job cuts as it faces worker and union protests at its car plant in Zwickau.  

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The U.S. and Iran exchange fire for a second day with President Trump threatening to increase the intensity of airstrikes. Kuwait and Bahrain suffer retaliatory attacks on U.S. bases while Qatar upgrades its security alertness. Speaking at the NATO summit, President Trump tells CNBC the conflict will not escalate into all-out war, insisting Washington’s objective is to prevent Tehran obtaining a nuclear weapon. Despite Trump’s declaration the MOU with Iran is over, markets remain sanguine. However, Brent nudges closer towards the $80-mark.

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The U.S. targets Iran with fresh airstrikes and revokes its license to sell crude oil after attacks tankers in the Strait of Hormuz. In response, Iran fires missiles at U.S. bases in Bahrain and Kuwait. We are live at the NATO summit in Ankara where President Trump again raises the Greenland question and threatens to pull all troops out of Europe over allies’ defence spending. However, NATO Secretary-General Mark Rutte tells CNBC Trump’s pressure on alliance members over funding has delivered big results. European leaders concur that spending into the bloc must be increased as the war...

We are live in Ankara where NATO leaders are gathering for the bloc’s annual summit. The focus is again on the U.S. commitment and allies’ increased spending. Secretary General Marc Rutte insists there is unity and coordination from all members. The U.S. Ambassador to NATO Matthew Whitaker tells CNBC Washington does want the organisation to succeed but allies’ defence spending must ‘keep pace’. Stellar preliminary earnings from Samsung send jitters through Asian markets, causing a circuit-breaker on South Korea’s KOSPI as investors sell off.  

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