Squawk Box Europe Express

Donald Trump is inaugurated as the 47th President of the United States, immediately signing off on a flurry of executive orders. He did, however, stop short of launching immediate tariffs on neighbours Canada, Mexico as well as on China. Trump did sign a 75-day reprieve on the ban on TikTok in order to review a deal for the platform. He also signed orders to withdraw the U.S. from the Paris Climate Agreement and to exit the WHO. We speak to UAE sovereign wealth fund Mubadala, Khaldoon Al Mubarak, who says AI demand is ‘profoundly high’ but warned that the technology remains imperfect. In forex news, the dollar is down while the yuan hits a 6-week high as a new Trump era begins.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

TikTok is reinstated Stateside following assurances from President-elect Trump who declares the social media giant’s operation as key to U.S. businesses and jobs. Ahead of his inauguration later today, Trump has pledged to sign close to 100 executive orders in his first few hours in office. In the Middle East, Hamas returns 3 October 7th hostages in return for 90 Palestinian prisoners as the Gaza ceasefire deal comes into effect. We hear from TSMC CFO Wendell Huang who says he expects funding from the Chips Act to continue under Trump’s leadership. He reveals that the Taiwanese chip giant has already received $1.5bn in government support.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

China posts growth of 5 per cent for 2024, achieving government targets following a strong Q4 which was driven by resilient export numbers and stimulus measures from Beijing. Apple stocks weigh on Wall Street with the iPhone maker suffering its worst session since August on the back of poor sales of its handsets in China. In France, Prime Minister Francois Bayrou survives a no-confidence motion in the Assemblée Nationale and continues discussions to form a 2025 budget. And in tech news, President Biden will now not push to cancel TikTok in the U.S. – a ban which was due to come into force on Sunday. The European Commission’s EVP Henna Virkkunen insists that European social media regulations must be respected.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street enjoys its best session since early November following a weaker-than-expected core CPI print. The Magnificent 7 tech stocks together added more than $550bn in collective market cap. U.S. bank earnings also helped boost indices Stateside with JP Morgan posting record revenues and earnings. Taiwanese chip giant TSMC posts record Q4 profits which surged by 57 per cent off the back of strong A.I. semiconductor demand. After 15 months of conflict, a U.S., Qatar and Egypt-brokered Israel-Hamas ceasefire deal has been reached. The triple-phased agreement is due to begin on Sunday.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Tech stocks including Nvidia and Meta drag the Nasdaq into the red for its fifth straight session. Investors now turn their attention to the CPI print following better-than-expected producer price data. In Seoul, police arrest impeached president Yoon Suk Yeol at the second attempt. He is South Korea’s first ever serving leader to be arrested. New French prime minister Francois Bayrou has announced in the Assemblée Nationale that he aims to re-open discussion over President Macron’s pension reforms as he seeks to court left-wing lawmakers to agree on a budget. And in the UK, under-pressure Chancellor Rachel Reeves doubles down to defend her October budget in the face of soaring borrowing costs.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Global bonds continue to sell off with the U.S. Treasury bill now hitting a 14-month high. Meanwhile the 10-year JGB yield reaches its highest level since 2011. Wall Street is dragged down by tech stocks to its fourth consecutive session in the red following President Biden’s announcement of new curbs on A.I. chips. The dollar index soars to its highest level in more than 2 years, putting global currencies under pressure. In energy news, crude prices fall back slightly but still hover at a near-4-month high after an increase of almost 10 per cent since the start of the year.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The dollar index soars to its highest level since late 2022, prompting the PBOC to ramp up efforts in a bid to protect the yuan. Chinese trade data for December beats expectations. Asian equities start the week slowly following Friday’s negative session on Wall Street and the strong December U.S. jobs print. In energy news, Brent rallies to top $81 per barrel on the back of new U.S. sanctions on Russian crude – its highest level for four months. And in Los Angeles, residents are braced for strong Santa Ana winds to return as the death toll from last week’s wildfires rises to 24.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Global markets are spooked by elevated yields with the 10-year Treasury yield sitting at a near-eight month high while UK Treasury seeks to reassure investors rising gilts. In China, yields also rise as the yuan hits a 16-month low. The PBOC moves to suspend treasury buying due to a shortage of available bonds. X owner Elon Musk reiterates his support for Germany’s AfD during a livestream conversation with leader Alice Weidel. In aviation news, Airbus delivered 766 jets in 2024, slightly missing expectations. However the French plane maker maintains its lead over rival Boeing for the sixth year running. Wall Street futures point lower following Christmas with investors now eyeing December’s non-farm payroll data due out later today.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The bond market sell-off continues around the world with the benchmark yield rising in the UK, Germany, Japan and the U.S. The 10-year yield is now at its highest level since April 2024. The Chinese economy is struggling against deflation with CPI data plunging to a 5-month low in December. Manufacturing prices remain in deflationary territory for the 27th-straight month. President Biden is reportedly due to sign off on a final round of A.I. chip export restrictions ahead of the Trump presidency in 11 days’ time in a bid to coerce allies to align themselves with U.S. standards in the sector. And in Los Angeles, wildfires have now spread into the iconic Hollywood Hills. President Biden has declared a major disaster. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A strengthening services and jobs scenario Stateside again dampens expectations of further Fed rate cuts this year with tech stocks pushing U.S. indices down, with Nvidia hit by profit-taking. In the UK, long-term borrowing costs soar to a 27-year high potentially wiping out under-fire Chancellor Rachel Reeves’ fiscal headroom. Samsung admits it will miss expectations in Q4 but share are in the green on the back of positive comments from Nvidia CEO Jensen Huang about the company’s ability to deliver A.I.-suitable chips. Facebook owner Meta scraps its fact-checking programme in what CEO Mark Zuckerberg describes as a return “back to our roots” regarding free speech. And in Los Angeles County, wildfires force 30,000 people to flee the Pacific Palisades region. A state of emergency has been declared.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Nvidia shares are at a record high as CEO Jensen Huang announces at CES his company’s ambitions to expand in robotics, gaming and autonomous vehicles. Samsung Electronics co-CEO Jong-Hee Han tells CNBC the South Korean giant is set to boost its on-device A.I. strategy and says competition in the sector is to be welcomed. Chinese tech conglomerate Tencent leads losses in Hong Kong as the U.S. adds the firm to its list of companies allegedly partnering with the Chinese military. U.S. President-elect Donald Trump denies reports he will water down tariff threats with the 30-year Treasury yield hits its highest point in 14 months. And in Canada, Prime Minister Justin Trudeau announces his resignation after 9 years in power. Former BoE governor Mark Carney is reportedly in the running to replace the Liberal Party leader.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese services activity hits a seven-month high on the back of strong domestic demand. The strength of the dollar pushes the yuan to a 16-month low. In autos news, Xpeng shares are up following the announcement of a Chinese EV charging network deal with Volkswagen. Tesla CEO Elon Musk intervenes further into UK politics arguing for a snap election and withdrawing his support for Reform leader Nigel Farage. Strong demand for A.I. helps Foxconn to record quarterly revenues and lifts the wider sector ahead of a key speech by Nvidia CEO Jensen Huang later today.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 the Nasdaq begin the year in the red - their fifth-straight negative session. However, the dollar extends its rally into 2025 with the index hitting a two-year high. President Biden is expected to officially announce he is blocking the proposed $15bn takeover of U.S. Steel by Japan’s Nippon Steel. Outnumbered by security forces, South Korean prosecutors abandon their attempt to execute an arrest warrant for impeached President Yoon Suk Yeol over last month’s imposition of martial law. And in autos news, Tesla shares fall more than one per cent on the year after the EV maker posted its first decline in annual deliveries. 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. is on high alert as the new year begins with a terror attack involving a pick-up truck ramming into revellers in New Orleans, killing 15 people and injuring dozens more. Hours later, a Tesla Cybertruck explodes outside the Trump Tower hotel in Las Vegas, killing the driver. Asian markets are mostly in the red with investors looking forward to a second Donald Trump presidency and a potentially more hawkish Federal Reserve. New Chinese export orders are down once more ahead of expected U.S. tariffs later this month. And in energy news, Kyiv refuses to renew a gas transit deal for Russian gas flowing into Europe.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

European equities are largely flat in the holiday-shortened session but the Stoxx 600 is set to deliver a second year in the green for the first time since 2015. The U.S. Treasury Department claims Chinese hackers have stolen documents in a major cyber breach. Beijing has said the allegations were smear tactics. Growth in China slows in December but President Xi Jinping said the country remains on track to hit its 5 per cent target for the year. And Chinese toy company Bloks Group is set to float on the Hong Kong Exchange in a listing that could be worth $188m. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Jeju Air disaster becomes South Korea’s worst air disaster in history with Boeing shares opening lower on the Frankfurt bourse. European equities follow Wall Street with every sector opening in the red. The Stoxx 600, however is still on track to end the year positively for a second straight time. In Japan, the Nikkei rises almost 20 per cent on the year while South Korea’s KOSPI posts its longest monthly losing streak since 2008. Condolences flood in for former U.S. President Jimmy Carter who has passed away aged 100.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese stocks are up on reports that Beijing is due to launch a record amount of special Treasury bonds in a bid to stimulate the economy ahead of Donald Trump’s return to the White House. U.S. President Joe Biden opens a probe into Chinese chip makers in what is the latest salvo against the country’s trade practices. Honda, Nissan and Mitsubishi all see shares surge, with Honda issuing a $7bn share buy-back and confirming merger talks with Nissan. French Prime Minister François Bayrou picks the head of the state-backed financial group Caisse des Dépôts Éric Lombard as his new finance minister.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Nissan and Honda officially begin merger talks which will create the world’s third largest automaker with ¥30tn in sales. Volkswagen shares are flat despite the German giant reaching an agreement with labour unions over annual cuts of €4bn and averting further strikes. In insurance news, Aviva is to buy up rival Direct Line in a deal worth £3.7bn. The deal will make it the largest home and car insurer in the UK. U.S. futures are up at the start of holiday-shortened week while President-elect Donald Trump threatens to seek American ownership of the Panama Canal over ‘ridiculous’ shipping fees.   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. is on the brink of a government shutdown, after the House rejects an amended Republican bill hours from the deadline. The Dow ekes out a gain, snapping its longest losing streak since 1974, as investors count down to today’s PCE print. Japanese core inflation came hotter than expected, slowing the Yen’s decline and pressuring the BOJ to hike rates. Nike shares reverse its gains as CEO Elliot Hill says the sport’s giant’s turnaround plan will be an uphill battle, while blaming deep discounts for declining revenue.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Markets were spooked after Fed Chair Powell delivers a hawkish cut and signals less easing in 2025 and beyond, with the dollar spiking, treasury yields climbing, and U.S. equities sinking. More fuel was added to fears over fewer rate cuts as President-elect Trump threatens to thwart a bipartisan funding bill, pushing the U.S. government closer to shutdown. Asian equities follow their Wall Street peers into the red, while the BOJ keeps rates on hold, as expected. Economists forecast a hold from the Bank of England as interest rates hit a three-decade premium against Germany amid higher inflation and weaker employment data.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.