Squawk Box Europe Express

We are live in Paris where the French government has collapsed after Prime Minister Francois Bayrou loses a vote of confidence over his austerity budget. France will now seek its fifth prime minister in less than two years. Bayrou warned lawmakers that while they can oust him, they cannot ‘erase reality’ about the country’s ballooning debt. We are also in Munich at the IAA Mobility 2025 show where European car makers show off their latest models with Chinese rivals cranking up the pressure across the Continent. Xpeng boss He Xiaopeng tells CNBC he plans to take his mass-market Mona brand overseas next year. At the Gastech summit in Milan we speak to TotalEnergies CEO Patrick Pouyanné who says European energy markets must diversify in the face of Opec+ output hikes, U.S. tariffs and tighter sanctions on Russia. And the European single market also dominates discussions at the Ambrosetti Forum with former Italian Prime Minister Enrico Letta telling this channel that President Trump’s tariffs have served as a ‘fe

We hear from U.S. Senator Richard Blumenthal at the Ambrosetti Forum who calls last week’s military parade attendees in Beijing “a tableau of tyrants”. The Democratic senator for Connecticut urged the U.S. and Europe to present a united front against an “axis of upheaval”. Japanese Prime Minister Shigeru Ishiba resigns after less than a year in power following a sequence of failed elections. The Nikkei, however, surges on anticipation Ishiba’s successor may usher in wider fiscal loosening. French Prime Minister Francois Bayrou is on the verge of being ousted in today’s vote of no confidence in his austerity budget - a result which will raise concern over France’s ability to cut debt and spending. In oil news, Opec+ nations move to unwind production cuts, boosting output by 137,000bpd in October as Saudi Arabia looks to reassert its market dominance.  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 on the shores of Lake Como in Italy where trade and defence will the focus at the Ambrosetti Forum. We hear from Nobel laureate Joseph Stiglitz who says the EU should have performed better in trade negotiations with the U.S. The S&P 500 hits a new record high and bond yields fall following this week’s multi-year highs as markets await today’s U.S. jobs data, hoping for further Fed rates easing. Ukrainian allies agree to post-war security guarantees at a summit in Paris with arrangements made for international troops to be stationed on land and at sea, despite admitting that a peace deal remains elusive.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The recent bond rout calms but deeper concerns about the global fiscal picture keeps bond yields at multi-year highs. We hear from Commerzbank CEO Bettina Orlopp who says markets should closely monitor government responses. In the U.S., a soft jobs reports raises hopes of a September rate cut and helps ease pressure on the bond market. Fed chair candidate pick Christopher Waller suggests more rate cuts are on their way. And in France, President Macron holds a ‘coalition of the willing’ summit for Ukraine and its allies as supportive nations seek to shore up U.S. support for eventual post-war guarantees.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

French and British bond yields hit multi-year highs as a rout develops on fiscal concerns. Beijing hosts world leaders including Russian President Vladimir Putin and North Korea’s Kim Jong-Un at a mass military parade to mark the 80th anniversary of the end of WW2. In tech news, Alphabet company Google notches a huge anti-trust win following a ruling by a U.S court which deemed it would not have to offload its Chrome browser. However, the company was instructed to share its search data with rivals. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Nestlé ousts its CEO Laurent Freixe following the revelation of an undisclosed relationship with a subordinate co-worker. The head of Nespresso, Philipp Navratil, has been appointed to run the Swiss food giant. Russian President Vladimir Putin has held talks with Chinese President Xi Jinping in Beijing, calling him ‘a dear friend’ as the two countries seek to strengthen global alliances following the Shanghai Cooperation Organisation summit. In France, Marine Le Pen’s Rassemblement National party calls for new elections as Prime Minister Francois Bayrou’s government teeters on the brink of collapse.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese President Xi Jinping hosts leaders from more than 20 nations at the Shanghai Cooperation Organisation. Xi outlined his vision for a new global bloc to counter the current U.S. administration. An appeals court in the U.S. rules that most of President Trump’s trade tariffs are illegal which could trigger worldwide economic uncertainty. In retail news, shares in Alibaba soar on the back of strong A.I.-related sales in its cloud division. The Chinese e-commerce giant is reportedly working to produce an A.I.-focused semi-conductor.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Fired Fed Governor Lisa Cook faces renewed pressure after a third criminal referral over her mortgage applications surfaces. President Trump shuts down a century-old tax loophole and threatens a 50 per cent levy on goods worth less than $800. And the European Union threatens Iran with a 30-day deadline to offer concessions regarding its nuclear programme or risk increased sanctions being reinstated.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Nvidia shares slump in after-hours trade as slowing revenue growth causes it to miss quarterly expectations in its data centre business. German defence company Rheinmettal unveils what will be Europe’s largest munitions plant. We hear from CEO Armin Papperger who says his company is doing his ‘utmost’ to fast-track defence production. Tesla European sales fall in July by more than 40 per cent – a seventh consecutive month of decreasing market share for the electric car maker.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Fired Federal Reserve governor Lisa Cook launches a lawsuit against her dismissal by President Trump which is now set to go all the way to the Supreme Court. France is on the brink of yet another parliamentary quagmire after French Prime Minister Francois Bayrou decides to put his budget cuts toa vote of no-confidence. Opposition lawmakers are vowing to oust Bayrou over the measures. Equities and sovereign debt sell off as a result. And in tariff news, Washington applies an additional 25 per cent levy on India as a result of purchases of discounted Russian oil. Option markets wait on Nvidia earnings, anticipating what could be a 6 per cent share move in either direction as Q2 earnings come to a close.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump dismisses Federal Reserve governor Lisa Cook over alleged mortgage loan improprieties but Cook says Trump has no grounds to remove her. In France, Prime Minister Francois Bayrou says he will put his budget cuts to a confidence vote in parliament. The three main opposition parties have already vowed to oppose his measures. And President Trump has threatened further tariffs on countries that tax or regulate American tech companies and his administration is also considering sanctions on EU or member state officials for implementing the Digital Services Act.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Fed Chairman Jerome Powell suggests labor market risks are now greater than inflation fears with a September rate cut now on the table. The markets respond with the Dow posting its best day in more than three months. In M&A news, drinks giant Keurig Dr Pepper is reportedly set to swoop for Dutch coffee group JDE Peet’s with an $18bn offer. The combined company would eventually split its drinks and coffee units.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The focus is on Jackson Hole, WY., ahead of U.S. Federal reserve Chairman Jerome Powell’s keynote speech. The summit is overshadowed by political pressure over interest rates with policy makers divided over the forecast. Kansas City Fed chair Jeffrey Schmid tells CNBC a September rate cut is not set in stone. Wall Street is in the red with the S&P 500 suffering its longest losing streak since the start of the year as investor jitters over the A.I. outlook affect the world’s biggest tech firms. Nvidia is set to cease production of its China-focused H20 chip as authorities cite security concerns and urge local tech firms to stop all purchases.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. tech stocks are under pressure for a second consecutive day as investors question the staying power of the A.I.-fuelled rally seen across the sector this year. Ahead of the Federal Reserve symposium at Jackson Hole, President Trump demands the resignation of Fed governor Lisa Cook over accusations of mortgage fraud. New data from FOMC minutes show members’ division over the Fed’s inflation and employment market forecast.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

UK inflation for July comes in at 3.8 per cent year-on-year to dash short-term hopes of an interest rate cut and pile on more pressure on Chancellor Rachel Reeves. Tech stocks are down over A.I. concerns as the White House eyes more equity-acquired stakes in companies enjoying Chips Act funding. A Ukraine peace plan including U.S. security guarantees is developing. President Trump welcomes potential air support from the UK but rules out stationing U.S. troops on Ukrainian soil.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump encourages Ukrainian President Volodomyr Zelenskyy to hold face-to-face talks with Russian President Vladimir Putin following a marathon day of talks with EU, UK and NATO leaders in Washington. An optimistic Trump said the U.S. would provide Kyiv with security guarantees but also reiterated it would be Europe that would shoulder the bulk of the burden in helping Ukraine defend itself in the future. In tech news, Japan’s Softbank has announced an unexpected $2bn stake in troubled chip maker Intel while the U.S. government looks to take a 10 per cent share in the company by converting Chips Act grants into equity.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Ukraine's President heads to Washington DC alongside European leaders for talks with Donald Trump today, with the U.S. President set to push for an end to the war — while the question remains: 'on whose terms?'. This as Friday's Alaska summit fails to yield an agreement — and leaves Kyiv fearing the U.S. could give way to Russia's terms after President Trump backtracks on his sanctions threat. Elsewhere, investors are counting down to the Jackson Hole symposium this week, looking for signs of where the Fed's rate path will lead.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

All eyes are on Anchorage, Alaska, as the city prepares to host today's meeting between Donald Trump and Russia's Vladimir Putin, with the U.S. President saying he's already contemplating a second summit to bring in Ukraine's leadership. Meanwhile, a hotter-than-expected PPI print stateside pours cold water on outside hopes of a jumbo Fed cut in September, and sending yields higher. But markets in Europe remain on track for healthy returns this week. In Asia, Chinese growth data slumps across the board with retail sales, industrial output and fixed asset investment all undershooting expectations - as the threat of tariffs continues to loom over the world's second largest economy.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

 The U.K. economy grows more than expected in the second quarter, offering some much-needed respite to Chancellor Rachel Reeves. President Trump holds productive talks with European leaders in the build up to Friday's Alaska summit, with the U.S. leader issuing a stark warning to Moscow if it does not agree to a peace deal in Ukraine. Meanwhile, Europe's Stoxx 600 hits a two-week high while the S&P 500 and Nasdaq close at all-time records, as markets price in a 100% chance of a Fed cut next month.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The inflation impact of Trump's tariffs fails to show in July's CPI print, leading investors to ramp up bets on a September Fed cut, and pushing global equity markets higher. Meanwhile, European leaders prepare for today's virtual talks with Presidents Trump and Zelenskyy - calling on the U.S. leader to safeguard Ukrainian territory and not bow to Putin's demands at Friday's Alaska summit. Software stocks on both sides of the Atlantic tumble - with SAP posting its worst day since the COVID-19 outbreak - as investors fret that AI could upend many of the world's biggest software companies.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.