Squawk Box Europe Express

President Joe Biden begins the first presidential debate in Atlanta on the back foot, struggling to counter attacks from former President Donald Trump. In Brussels EU leaders renominate Ursula Von Der Leyen for a second term as European Commission President. Estonian PM Kaja Kallas and Portuguese PM Antonio Costa get the nod for foreign policy chief and EU council president respectively despite opposition from Italy and Hungary. The yen against the dollar is trading at its weakest level in almost 40 years as Japan names a new currency chief. And in retail news, Nike issues a large sales warning, with shares plunging 12 per cent in extended trade.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Prime Minister Rishi Sunak and Labour leader Sir Keir Starmer go head-to-head, trading tax accusations in the final televised debate ahead of next month’s UK general election. The yen has fallen to a new 38-year low against the greenback, triggering speculation the BoJ will intervene and raise interest rates in July. The Nasdaq is in the green, helped by Amazon breaching $2tn in market cap for the first time ever. Chip maker Micron sees revenues soar by 80 per cent but Q4 guidance fails to impress investors. Shares fall almost 8 per cent lower after yesterday’s close.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The leaders of France’s three main political blocs participate in a TV debate with Prime Minister Gabriel Attal and National Rally’s Jordan Bardella accusing one another over unrealistic budgetary plans. In Brussels, European Commission President Ursula Von Der Leyen looks set to win another term as negotiators have reportedly struck a deal ahead of the formal summit. Volkswagen pushes EV start-up Rivian shares 50 per cent higher in extended trade following its $5bn investment announcement in the firm. Chip maker Nvidia claws back recent losses to close yesterday’s session almost 7 per cent higher.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Nvidia’s record-breaking rally comes to an end with the stock price plunging 7 per cent. The fall erases $550bn from the A.I. semiconductor’s market cap since last week’s peak. At the so-called ‘summer Davos’ WEF meeting in Dalian, Chinese premier Li Qiang says he believes China can hit its growth targets this year, playing down trade conflicts with the EU. In aviation news, Airbus cuts its guidance and slows production of its best-selling A320 Neo craft as supply chain issues continue to hinder the plane maker. And fast fashion firm Shein is reportedly filing to go public on the LSE rather than on Wall Street, which would be the City’s biggest listing in more than a decade.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

European Union and Chinese officials are to hold talks about the bloc’s planned tariffs on Chinese EVs. Asian markets are mixed after a soft end to the week on Wall Street in the longest stretch of low volatility since the GFC. In France, President Emmanuel Macron’s centrist Ensemble alliance loses more ground in the polls, trailing Marine Le Pen’s National Rally ahead of next weekend’s electoral first round. Former U.S. President Donald Trump holds a rally in Philadelphia while Joe Biden prepares for this week’s presidential debate.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

We hear exclusively from IMF managing director Kristalina Georgieva who says Europe is on the right economic path but must take advantage of the single market or fall behind. The Nasdaq breaks its longest winning streak of the year as Nvidia shares pare back. However Wall Street is on course for a positive end to the week with energy stocks leading gains. The BoE signals it may cut interest rates in August after keeping them steady yesterday with a finely balanced decision. And in the Netherlands, Prime Minister Mark Rutte is on course to become the new NATO secretary-general after his only remaining rival, Romanian president Klaus Iohannis, withdraws from the race. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The BoE and Norges Bank are expected to hold rates steady today while the SNB looks set to make a second consecutive cut today. UK Prime Minister Rishi Sunak suffers another blow to his chances of re-election with one poll predicting the Tories are on track for its lowest ever seat total next month. In Brussels, Italian Prime Minister Giorgia Meloni’s ECR party overtakes Macron’s Renew bloc to become the third-largest party in the European Parliament. In autos news, Chinese automakers reportedly urge Beijing lawmakers to hike duties on ICE imports in retaliation for tariffs placed on EVs.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The world’s most valuable company Nvidia overtakes Microsoft in terms of market cap following a 170 per cent rally this year. Treasury yields fall following lower-than-expected retail sales numbers bolster hopes of a Fed rate cut later this year. Luxury trainer maker Golden Goose shelves plans to list on the Milan stock exchange blaming a deterioration of market conditions following the recent European elections. And in the UK, inflation looks set to return back to target – the last print before next month’s general election.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Europe's competition chief Margrethe Vestager will soon be ending her mandate in Brussels, after ten years of taking on Big Tech and others. In an exclusive conversation with Squawk Box Europe's Silvia Amaro, she addressed some of the ongoing investigations into Microsoft and Apple and offered a sobering perspective on Europe's place in the world.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

We are live in Brussels where the European Commission top job is up for grabs. The EPP is demanding the presidency is split into two terms of two-and-a-half years. Wall Street enjoys a mega-cap rally with the S&P 500 notching a 30th record close this year. In aviation news, Boeing CEO Dave Calhoun prepares to face lawmakers on Capitol Hill over the plane maker’s recent safety record troubles. And Israeli Prime Minister Benjamin Netanyahu dissolves his war cabinet as discontent grows over the ongoing war in Gaza.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese retail sales deliver but concerns remain over the property sector which drag on fixed asset investment. Minneapolis Fed Chairman Neel Kashkari signals a rate cut may happen in December as he calls for more evidence inflation is falling. Israeli Prime Minister Benjamin Netanyahu condemns his generals’ decision to allow for tactical pauses in fighting to permit daily aid to Gaza. Paris sees protests against Marine Le Pen’s National Rally party which has taken an early lead in polls ahead of next month’s snap election.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

G7 nations agree on a $50bn aid package to Ukraine, using frozen Russian assets to underwrite the deal. We are live in Bari for the latest where EU Council President Charles Michel tells CNBC that Russia must pay up for its invasion of the country. In Asia, the yen slides as the BoJ keeps rates on hold but signals that quantitative tightening is on the way. Tesla shareholders approve CEO Elon Musk’s $56bn pay package for the second time to make it the largest public company compensation in history. In the UK, the Labour Party unveils its election manifesto with pledges on the economy at its core. A new YouGov poll puts Reform in second place ahead of the incumbent Conservative Party.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Federal Reserve leaves interest rates on hold at a record 20-year high and indicates it will make only one cut this year. Chairman Jerome Powell says the fight against inflation continues. Equity markets react to cooling inflation. The S&P 500 hits a fresh new high while Apple temporarily overtakes Microsoft as the world’s most valuable company. French President Emmanuel Macron holds a briefing to explain his decision to hold July’s snap election. Meanwhile, the EU is set to slap Chinese EVs with tariffs of up to 38 per cent. Trade Commissioner Valdis Dombrovskis tells CNBC the bloc deserves a level playing field. And we are live in Bari, Italy ahead of the G7 summit where the U.S. are to broaden sanctions against Russia with leaders aiming at using interest from frozen assets.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Disappointing Chinese consumer activity keeps a lid on consumer prices in the world’s second-largest economy while manufacturing activity fell for the 20th consecutive month. The EU is set to more than double tariffs on Chinese-made EVs, risking further confrontation. Apple posts its best daily performance since 2002 as investors turn bullish over its A.I. push while in the UK, the Conservative Party launch their election manifesto with financial security being a key tenet of the plan.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 lower as they digest the weekend’s EU election results. However, the S&P 500 and the Nasdaq hit new record highs ahead of this week’s Fed meeting. In France, right-wing parties hold emergency coalition talks following President Emmanuel Macron’s snap election decision following his party’s poor result on Sunday. In tech news, Apple launches long-awaited A.I. features, announcing a partnership with OpenAI which would allow Siri to connect with Chat GPT. And in the UK, Prime Minister Rishi Sunak unveils his Conservative Party manifesto with a pledge to cut taxes. The opposition Labour Party has slammed the proposals as “the most expensive panic attack in history.”See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A shock in France: President Emmanuel Macron takes a gamble, calling a snap parliamentary election after his party suffers a humiliating defeat in EU elections. The Centre holds but the Far-Right sees record support, unsettling the bloc's mainstream establishment. Germany's ruling coalition suffers its worst ever result as the rise of the right raises questions over the government's stability. And, Italian Prime Minister Giorgia Meloni comes out on top - solidifying her mandate and positioning herself as one of the most powerful figures in 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.

Chinese exports surge more than 7-and-a-half percent in May, but slower import growth points to signs of weakness in domestic demand. The ECB cuts rates for the first time since 2019, but persistent price pressures have markets pricing in just one more cut this year - while President Christine Lagarde refuses to commit to further easing. Exit polls in the Netherlands show the Labour-Green Left coalition in the lead - securing eight seats in Brussels, while Geert Wilders' anti-immigration PVV makes strong gains, just one seat behind. And Gamestop shares surge in extended trade after a near 50-percent pop in the session, as 'Roaring Kitty' schedules a YouTube livestream later on Friday.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The ECB is set to cut interest rates for the first time in nearly 5 years. We are live at the ECB head of today’s decision. Former ECB board member Peter Praet tells CNBC that markets are still adjusting to the central bank’s looser policy. The tech giant Nvidia’s market cap breaches the $3tn mark, overtaking Apple to take second position as the world’s most valuable public company behind Microsoft. The Nasdaq hits new highs as U.S. services activity gathers momentum. However, private jobs creation contracts in May, further fuelling speculation of a September rate cut. And in Normandy, world leaders gather to commemorate the 80th anniversary of D-Day.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. jobs numbers come in at their lowest level since February 2021. Wall Street remains in a holding pattern as investors await Friday’s non-farm payroll data. Indian equities steady after yesterday’s market cap loss of $371bn due to Prime Minister Narendra Modi failing to win a clear majority for his third term in office. U.S. tech giant Intel announces its latest generation of A.I. semiconductors, seeking to regain market share. CEO Pat Gelsinger tells CNBC foundry profitability is key. Tesla CEO Elon Musk confirms a CNBC report that he redirected thousands of Tesla-bound Nvidia chips to X and X-AI as he had no place to send them.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Indian prime minister Narendra Modi looks set to secure a third term in office with a narrower-than-expected parliamentary majority. We are live in New Delhi as the vote count continues. On Wall Street the Dow falls 100 points on the first trading day of June as U.S. manufacturing numbers indicate the economy is contracting. Gamestop shares rally following renewed social media activity by the investor known as Roaring Kitty. CNBC learns that Paramount and Skydance agree to merger terms after months of negotiations. Shipping giant Maersk hikes its guidance for the second time in just over a month as Red Sea tensions and soaring demand push freight rates higher.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.