Squawk Box Europe Express

Back into the green … the Nasdaq leads U.S. indices with a new record close as Apple hits an all-time high along with other big tech sector gains. In Europe, SAP enjoys a cloud boost as software licensing falls by 18 per cent and the German tech giant also confirms its full-year guidance. Airbus deliveries recover in May but H1 sales still hit a 16-year low - this amid a stand-off with unions over huge cost-cutting measures at the French aerospace company. And Brussels has reportedly struck a deal with Swiss and German drug makers Roche and Merck to supply EU member states with Covid-19 treatment medicines.  

U.S. markets see recent gains pared back as the tech rally begins to lose steam but gold holds at its highest level for 8 years. Investors turn risk-off after confirmed Covid-19 cases Stateside top 3 million. The WHO is set to update its guidance after evidence emerges that the Coronavirus could be airborne after all. In corporate news, logistics giant Deutsche Post DHL beats forecasts to deliver a 16 per cent jump in Q2 operating profit. And German lender Deutsche Bank is issued a $150m fine by the New York state department for financial services for its ties to Jeffrey Epstein. CEO Christian Sewing tells CNBC it was “a critical mistake” to take on the late convicted paedophile’s account.

U.S. Covid-19 cases spike by 250,000 in five days but markets are undeterred, closing firmly in the green. White House health advisor Dr Anthony Fauci says there are increased numbers of young people affected by the virus and that immunity may be finite. Chinese markets also see five days of big gains but a U.S. government official says President Trump is preparing several executive orders which could hit Chinese manufacturing, immigration and jobs to “reset the balance” with the country. In France, President Macron completes a government re-shuffle in a bid to shore up the post-pandemic recovery as well as his 2022 re-election prospects. And in tech news, Samsung shares are down despite a 23 per cent jump in operating profit in the second quarter. Chip demand had reportedly offset weak demand for smartphones and televisions during the virus outbreak.  

Chinese stocks rally to four-month highs with the CSI 300 marking its best day since February 2019 as investors bet on a re-opening boom following the COVID-19 pandemic. However, the WHO reports a record rise in infections, with the U.S. Sun Belt spiking and Spain re-imposing lockdowns in Catalonia and Galicia. In Germany, Commerzbank’s CEO and chairman both resign following a dispute with activist investors and unions. CNBC learns that an internal replacement is being considered. And in M&A news, Warren Buffett’s Berkshire Hathaway makes its first move since the onset of the pandemic – a $10bn bet on natural gas and storage assets at Dominion Energy.

Record highs…the U.S. sees a daily spike of more than 50,000 Coronavirus infections but President Trump says the June non-farm payroll numbers of 4.8 million new jobs proves the economy is “roaring back”. The Chinese services sector has expanded at its fastest rate in more than a decade as lockdown measures are eased across the country and consumer demand continues to inch upwards. In Germany, Deutsche Bank is coordinating with regulators to potentially bail out insolvent payment company Wirecard, with the aim of shoring up its banking unit. The search for a Covid-19 vaccine hits a snag on both sides of the Atlantic. French drug maker Sanofi says its arthritis medicine has failed against the virus while in the U.S., Moderna shares plunge after its trials are postponed.  

Re-opening reversal. Some of the largest U.S. states are forced to review their lockdown easing measures, with Apple shutting more stores and McDonald’s postponing in-house dining, as cases spike by around 50,000 in one day. June private payrolls in the U.S. rise less than expected, with layoffs jumping more than 300 per cent for 2020, ahead of the non-farm payrolls data. However, both U.S. and Asian markets are up on hopes of a vaccine breakthrough following cautiously positive human trials by Pfizer and Biontech. In Europe, police in Germany and Austria raid Wirecard offices for alleged fraud with investigations potentially embroiling more senior executives.  

The US records more than 47,000 Coronavirus cases, hitting a new daily record, as White House advisor Dr Anthony Fauci warns infections could reach more 'disturbing' levels. It’s a mixed start to the second half in Asian markets after closing out a bull-run in the previous quarter. Meanwhile, U.S. Treasury Secretary Steven Mnuchin promises to extend up to $140bn in crisis loans for the hardest-hit industries. In corporate news, FedEx delivers a bottom-line beat, sending shares sharply higher after-hours despite a 50 per cent drop in profit. The US shipping group says it will not provide an earnings forecast. And in aviation news, Airbus has announced that 15,000 jobs could be cut in the wake of the pandemic but unions are threatening a showdown with the French aerospace company.

Stocks look set to close the month firmly in the green, with the Dow Jones on pace to post its best quarter in more than two decades, while the Nasdaq sees its strongest quarter since 2001. Asian markets build on Wall Street’s gains on the back of encouraging PMI data out of China, which sees factory activity expand in June and improving trends in export orders. China passes the Hong Kong security bill in a move that has drawn international condemnation for imposing influence on the territory, but CEO Carrie Lam says "sanctioning doesn't scare us". Most of America's largest banks complete the stress tests with their dividend plans intact but Wells Fargo doesn't fare so well, saying it will have to cut its payouts.

A morbid milestone: global coronavirus cases pass the 10 million-mark with growing numbers across the U.S. Sun Belt states. The surge has prompted Florida to close beaches and California to shut down bars. The news sends Asian stocks lower despite some signs of recovery in China with May industrial profits rebounding, rising 6 per cent on the year. In advertising, a growing group of multinationals including Coca-Cola, Unilever and Starbucks are boycotting Facebook amid a backlash over hate speech control on the platform. And in energy news, fracking pioneer Chesapeake is forced to file for Chapter 11 bankruptcy as it collapses under spiralling debts and the oil price crash.

The U.S. Federal Reserve has restricted banks from paying dividends, following the results of stress tests in the wake of the Coronavirus pandemic. Financials stocks fall in extended trading as a result. Disgraced German payments giant Wirecard has filed for insolvency prompting the country’s finance minister, Olaf Scholz, to call for an overhaul in financial regulation. In retail news, Nike sees shares fall after the sportswear giant missed sales forecasts with a 38 per cent fall in revenue. Online sales failed to offset the impact of store closures during the Covid-19 virus outbreak. U.S. secretary of state Mike Pompeo has agreed with EU foreign policy minister Josep Borrell to hold formal talks to tackle Beijing’s ‘predatory practices’.

A surge in cases sparks a sharp sell-off. U.S. markets tumble with the Dow Jones falling by more than 700 points while the Nasdaq posted its first decline in nine sessions. This, as U.S. daily Coronavirus numbers soared to their highest peak since April with California logging a record 7,000 infections while cases in Florida spike above 5,500. Recession fears have also weighed on sentiment. The IMF has lowered its global growth forecast, warning that GDP will contract by nearly 5 per cent in 2020. The pandemic has pushed U.S. crude stockpiles to record highs and placed pressure on demand expectations, sending oil prices sharply lower. And in Germany, drug behemoth Bayer has announced it will spend up to $11bn to settle litigation cases over the alleged harmful effects of its weedkiller, Roundup, while Lufthansa receives some good news, with its biggest investor suggesting he will approve the airline’s bailout.  

The spread of the outbreak quickens in the U.S., with Texas and Arizona seeing a spike in cases, in what top health official Anthony Fauci calls a “disturbing surge”. According to a document seen by the New York Times, the EU will reportedly prohibit American travellers from travelling to the bloc, listing the U.S. alongside Brazil and Russia for inadequate responses to the Coronavirus outbreak. In Munich, prosecutors have released Wirecard's former CEO on €5m bail. Markus Braun had been arrested over allegations he falsified accounts at the German payments company. And in tech news, Dell shares jump by more than 20 per cent on reports the computer company is exploring options for its $50bn stake in cloud services group VMWare, which include selling the holding or buying it outright.

Mixed messages: White House trade advisor Peter Navarro is forced to backtrack, saying the US-China trade deal is not over after his earlier comments suggesting the agreement was “off” hit markets. Apple plans to switch to its own chips for Macs, ending a 15-year relationship with Intel. The tech giant's CEO Tim Cook tells developers it's a huge leap in how the company powers its products. Meanwhile in Japan, Softbank sheds its shares in T-Mobile, selling 21 billion dollars worth of stock, as it divests two-thirds of its stake in a bid to raise funds for its buyback and debt draw-down plans. And finally in Europe, another deal attracts another investigation. The European Commission launches a 4-month anti-trust probe into LSE's 27 billion dollar bid for Refinitiv, amid competition concerns over the exchange mega-merger.

A record rise in global coronavirus cases keeps markets on edge, with the US logging its second-highest number ever, while Brazil's infections top 50,000 and Germany sees its rate spike because of an outbreak at a slaughterhouse. In the U.S., President Trump makes a lackluster return to the campaign stage, as his rally in Tulsa draws a smaller than expected crowd. The U.S. leader used the rally to attack Joe Biden and protesters, while spending little time addressing COVID. In Germany, Wirecard withdraws its first quarter and full year results, as the German payments company says the 1.9 billion euros missing from its accounts may never have existed. Meanwhile, sources tell CNBC Lufthansa bosses will meet with the ministry of finance and billionaire investor Heinz Herman Thiele today to try to reach a bailout resolution ahead of a shareholder meeting later this week.

U.S equities head in different directions. The Dow closes slightly lower, as states like Arizona log record virus cases, diverging from the Nasdaq, which posts its first 5-day winning streak in a month. McDonalds plans to beef up its workforce this summer, with plans to hire 260-thousand people, as the fast food giant begins returning to normal operations in the US. Staying in America, the Supreme Court deals a blow to President Trump, declaring that his plan to end an Obama-era youth immigration protection plan is unlawful. Meanwhile in Germany, shares in Wirecard close down over 60 percent after the payments group admits 1 point 9 billion euros has gone missing, saying it believes a third party has tried to deceive its auditor.

Trade tensions return after the US government pulls out of talks with European countries over their digital tax plans, dashing hopes of a global deal and reviving the prospect of tariffs. Brussels launches an anti-trust probe into Fiat Chrysler and PSA's 50 billion dollar mega merger, citing concerns over their dominant market share in the small vans market. In Asia, markets trade lower, but JD.com rallies on the e-commerce giant's 3 point 8 billion dollar Hong Kong debut. And in the U.K., the Bank of England is expected to expand its bond buying plan but steer clear of negative rates despite Governor Andrew Bailey saying they are QUOTE 'under active review'.

A retail rebound …. U.S. retail sales jump a record 17.7 per cent in May, beating expectations and helping the Dow close more than 500 points higher. But Fed chair Jerome Powell warns of significant uncertainty surrounding the timing and the strength of the US recovery, as he testifies before the US Senate, but plays down the central bank's latest push into the corporate bond market. Meanwhile, President Trump signs an executive order that reforms police practices as he also calls for calm from protesters, saying 'America wants law and order. The U.K. claims a drug breakthrough, fast-tracking approval for the use of a common steroid that reduces the risk of death for critical COVID patients by a third.

A big comeback for stocks, as US futures surge after Wall Street swings back from a negative session and the Nikkei gains more than 4 percent. The Fed says it will begin buying individual corporate bonds on top of ETF purchases, in what is seen as another shift to more active market intervention. Meanwhile the WHO calls for an investigation into new coronavirus clusters, as the outbreak in Beijing grows and hospitalizations in Texas hit an all-time high. In the UK, Prime Minister Boris Johnson says a Brexit deal by the end of July is possible, after talks with EU leaders end with a positive tone despite key sticking points.

Asian stock markets and US Futures begin the week in the red, after the Dow posts its worst weekly performance since the middle of March. This as Chinese industrial output in May misses expectations as Beijing is forced to lock down more than 10 neighbourhoods following a Coronavirus outbreak at a local market, raising fears of a second wave in the country. In the U.S., infections also spike in the southern states of Florida, Alabama and South Carolina where record number of new cases a reported for a third day in a row. In Europe months of travel restrictions are eased and borders are reopened as EasyJet prepares to launch its first flight since March from Gatwick.

The worst moves since March... The Dow Jones falls by almost 7 per cent, breaking a three-week winning streak. The broad market sell-off means all the major U.S. averages suffer their worst performance in three months. The losses are led by the energy and technology sectors, with the biggest five tech names losing a collective $270bn in market value in just one day. The huge reversals have been prompted by a resurgence in U.S. Covid-19 cases amid a second spike. The IMF has estimated that global governments have already spent $10tn in fighting the pandemic. But, U.S. Treasury Secretary Steven Mnuchin tells this channel that the damage from a second economic shutdown is unthinkable. And following the death of George Floyd, President Trump is set to sign an executive order to invest more in law enforcement and improve policing standards, while Apple pledges $100mn to improve racial justice.