Squawk Box Europe Express

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.

U.S. Treasury yields rise following better-than expected manufacturing data with odds of a June rate cut slightly slipping. In the UK shop price inflation falls below 2 per cent for the first time in two years, according to the British Retail Consortium. Iran accuses Israel of bombing its consulate in Syria with several senior Revolutionary Guard commanders killed. Tehran has vowed a “harsh” response. In Asia, Xiaomi shares are up boosting the Hang Seng after the tech giant enters the EV sector. This, as BYD sells 300k units in March.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

On Wall Street the S&P 500 and the Nasdaq suffer their worst week since March as a trio of Fed officials doubled down on ‘higher for longer’ rate hike cycle signals. Chinese property giant Evergrande sees shares plunge after it announced it was unable to issue new debt due to an investigation into one of its subsidiaries. There has been a breakthrough in Hollywood between the writers’ union and the major studios but in Detroit strikes have expanded with President Joe Biden set to join the picket lines tomorrow. European Trade Commissioner Valdis Dombrovskis has said that China could do more to improve Europe’s perception of risk from the country but stresses that Brussels does not seek to decouple from Beijing. And in Spain, 40,000 people protest against plans by Prime Minister Pedro Sanchez to grant Catalan separatists amnesty.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

European equities react negatively following hawkish comments from ECB President Christine Lagarde who warns not to expect interest rate cuts until the summer. In Davos we hear from outgoing Dutch Prime Minister Mark Rutte who says centrist parties in Europe must be clearer on tough issues in the face of populist party challenges. We also speak to UK Shadow Chancellor Rachel Reeves who is positioning Labour as a pro-business party, with no plans to increase income tax. French President Emmanuel Macron issues a rallying cry for the EU project but bemoans the bloc’s fragmentation. Tech giant Apple will remove a blood oxygen feature from Apple watches after an appeals court reinstates a U.S. sales ban following an I.P. dispute with med-tech firm Masimo.

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. sees a surprise jump in unemployment numbers with softer hourly earnings data which prompts expectations that the Federal Reserve will pause its rate hiking cycle this month. NEC director Lael Brainard says the economy remains resilient and stable. Chinese property developer Country Garden has reportedly struck a deal to extend on-shore bond payments, pushing shares to a three-week high. Asian equities, led by the Hang Seng, are higher as a result. We are live at the Ambrosetti Forum on the shores of Lake Como where Italian deputy PM Antonio Tajani has told CNBC his country is considering withdrawing from China’s Belt & Road Initiative. Meanwhile, European Economy Commissioner Paolo Gentiloni claims the EU economy can avoid recession, despite the marked downturn seen in Germany. We are also live at the Munich Auto Show where an increased Chinese presence is drawing attention. However the CEOs of Mercedes and BMW tell CNBC that they remain unfazed by the new competition.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.