Squawk Box Europe Express

The delayed result of the U.S. presidential election still hinges on several key states with vote-counting coming down to the wire. President Trump has doubled down on claims of electoral fraud by the Democrats, despite his campaign losing two legal challenges. The race in Georgia is virtually tied and Pennsylvania remains too close to call. Democrat candidate Joe Biden has urged for calm while ballots continue to be tallied. U.S. Federal Reserve chairman Jerome Powell has urged for political consensus in Washington on agreeing a fiscal stimulus programme. The Dow and S&P continue to rally, gaining more than one per cent for four consecutive days. Subsequently, it’s been the best week for major markets since April.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The vote count for the U.S. presidential elections continues, with the result on a knife-edge. Two key battleground state wins have emerged for the Democrats. The Trump campaign has demanded a ballot recount in Wisconsin and is filing a lawsuit in Georgia. President Trump is planning more legal action and has urged the Supreme Court to weigh in on alleged counting irregularities. Meanwhile, Democrat hopes of winning the Senate fade as the Republicans will keep their chamber majority. U.S. futures soar with the S&P recording its best post-election gains in modern times, to help Wall Street break a 2-week losing streak.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

It’s Election Day in the U.S. A CNBC-Change Research poll indicates that Democrat candidate Joe Biden is holding a narrow lead over President Trump in 6 swing states. Up to 68% of those polled say that they have already cast their ballots. The President has called on the U.S. Supreme Court to review a decision to count mail-in ballots arriving after election day. He warned that the ruling could spark “violence in the streets”. U.S. equities and both Asian and European futures and stocks rally ahead of today’s vote. And in Europe, the second wave continues as France and Spain see a surge in Covid infections – up to 50,000 in a day – while Italy is considering stricter measures to combat the virus but will stop short of a national lockdown.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

UK Prime Minister Boris Johnson is set to announce his new Covid -19 restrictions to parliament, amid concerns the 28-day lockdown may not be enough to control the spread of the virus. In the U.S. an NBC/WSJ polls shows Joe Biden leading President Trump by 10 points a day ahead of the presidential election. President Trump has raised fears of electoral integrity should voting-counting continue past November 3rd. Meanwhile, Asian markets are up across the board on news that Chinese manufacturing activity in October expanded at its fastest rate in a decade.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

It’s a big day for U.S. tech earnings. Alphabet Q3 numbers soar past expectations after advertising revenue bounced back following its first ever quarterly decline. Apple also beats analysts’ expectations but investor reaction is muted on a lack of guidance and disappointing iPhone sales. Amazon shares see-sawed wildly in extended trading yesterday with stocks initially up on the online retail giant’s 40 per cent Q3 revenue hike. However, they swung into the negative on news of $4bn of virus-related cost-cutting. Meanwhile, Facebook reports a boost in ad sales, but a drop in North American users keeps sentiment flat. Twitter also sees a dip in user growth while revenue came in better than expected.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Lockdown 2.0… France and Germany announce fresh national restrictions to combat the second wave of Covid-19 over the coming winter months. U.S. markets plunge as the Dow suffering its worst day since June with investor confidence rattled ahead of next week’s presidential election. Asia-focused lender Standard Chartered beats Q3 pre-tax profit expectations but performance remains tempered by low interest rates and pandemic jitters. Airbus issues its first guidance since the start of the virus outbreak and believes it will break even by the fourth quarter. However, the French aerospace giant warns that the global travel industry recovery continues to stutter.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Earnings season is in full swing on both sides of the Atlantic. In Europe, all eyes are on Deutsche Bank’s third-quarter data with a focus on its loan loss provision figures and trading levels. Meanwhile, Danish brewing giant Carlsberg posts better-than-expected Q3 numbers, enjoying a strong summer surge in China and Russia as lockdown measures eased. In tech news, Microsoft beats estimates across the board, but shares plunge on less-than-optimistic revenue guidance. And President Trump admits that a virus stimulus deal will not materialise before next week’s election, blaming House Speaker Nancy Pelosi of standing in the way of an agreement.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Banks are in focus today, as HSBC’s third quarter profit beats expectations but falls 36 percent sending shares higher. The company’s CEO tells CNBC interest rates are expected to remain low. Santander sees net profit treble in the third quarter, but the Spanish bank says it will cut an additional 1 billion euros in costs over the next 2 years.In the U.S., the Dow posts its biggest one day drop since early September and closing below 28 thousand, as rising cases and stalled stimulus weigh on sentiment. Meanwhile the senate confirms Amy Coney Barrett to the supreme court, cementing a conservative majority in the country’s highest judicial body. President Trump's pick says she will be 'politically independent'. And protests break out across Italy after the government imposes renewed virus restrictions, with some demonstrators in Turin turning violent, attacking police with smoke bombs and bottles.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-se

US futures come under pressure as America sees a record weekend rise in COVID-19 cases, while Vice-President Mike Pence stays on the campaign trial despite a number of his close aides testing positive. The surge of virus cases in Europe have led the Italian government to impose fresh pandemic measures, putting a curfew on bars and restaurants, and re-closing gyms and cinemas. Prime Minister Giuseppe Conte called on people to 'grit their teeth' and promised economic support through the lockdown. In the tech space, SAP forecasts darker skies ahead, as the German software giant cut its 2020 outlook on weakening cloud revenues. And Jack Ma hails Ant's much-anticipated IPO as the 'largest in history', as reports suggest the listing could top $35bn, with the official pricing expected this week.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump and Democrat challenger Joe Biden spar in the final U.S. presidential debate. The topics the pair clashed on included the Covid-19 response, healthcare and the state of economy. U.S. markets close on the upside as American jobless claims fall, signalling an improving economy while House Speaker Nancy Pelosi says a virus stimulus bill is nearing agreement. In Europe, up to two-thirds of French citizens are subject to regional curfews as the country records up to 40,000 new cases in a day for the first time. And there is a return to growth in the luxury sector as strong demand in Asia helps L'Oréal and Kering improve their revenues in the third quarter, but both the cosmetics group and the fashion giant warn of an uncertain outlook. In telco news, Huawei’s double-digit quarterly winning streak ends as U.S. sanctions begin to bite.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Tesla has reported its fifth quarterly profit in a row on accelerated vehicle sales. After-hours trading sees shares higher and CEO Elon Musk believes he can expand production up to 20m vehicles annually. Markets are sceptical of a pre-election virus stimulus deal in the U.S., but House Speaker Nancy Pelosi is optimistic she and the White House are close to an agreement. Spain is the first European nation to record 1 million Coronavirus cases. We hear from Deutsche Post DHL boss Frank Appel who remains confident that the continent’s populace can remain resilient during a potential second wave. And in the UK, sterling surges on renewed hopes of a Brexit trade deal as Downing Street and Brussels signal an intention to break the impasse.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Netflix reports its biggest earnings miss ever in Q3 with a sharp slowdown in quarterly subscribers, pushing shares down by more than 5 per cent in after-hours trading. Meanwhile, U.S. futures rise on virus relief hopes. Talks on a stimulus package inch forward but White House Chief of Staff Mark Meadows says certain unresolved issues remain. The OECD Secretary-General Angel Gurria tells CNBC the socio-economic repercussions will outlive the virus itself. This, as the UK records its highest number of daily Coronavirus since June. Meanwhile, Google is hit with a landmark anti-trust lawsuit by the U.S. Department of Justice over alleged unfair practices related to search algorithms and online advertising.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

UBS says it had its best pre-tax Q3 profit in a decade but warns that political instability may result in increased market volatility. U.S. investors wait on stimulus talks ahead the Democrat-imposed deadline for negotiations. But diminished hopes of a deal led US markets to close in the red with the Nasdaq recording its fifth negative session in a row for the first time since 2019. Markets will also keep an eye on the U.S. presidential elections, after it is revealed that the third and final debate between President Trump and his Democrat rival Joe Biden will feature a mute button to avoid interruptions. And in tech news, South Korea’s SK Hynix buys Intel’s memory chip unit for $9bn.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese GDP misses forecasts but posts a 4.9 per cent rise in the third quarter with retail and industrial activity supporting the post-virus rebound. U.S. futures surge after House Speaker Nancy Pelosi sets a deadline for a stimulus programme to be approved. In Europe, new restrictions are in place across the continent as many governments struggle to contain a second wave of Covid-19. Italy announces new measures while a 9pm curfew takes effect in France, but a Berlin court overturns a ban imposed on late-night bars. Meanwhile, U.K. Cabinet Office Minister Michael Gove says that the door remains “ajar” for EU trade talks to resume, but PM Boris Johnson readies the country for a no-deal Brexit. And in IPO news, Alibaba-owned Ant Group receives regulator approval for its potentially record-setting dual listing.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

President Trump and Democrat rival Joe Biden go head-to-head but in separate town hall appearances with the U.S. virus response at the fore of discussions. The White House indicates that it is ready to increase its stimulus offer. Treasury Secretary Steven Mnuchin says House Speaker Nancy Pelosi is the main problem, standing in the way of a deal. We hear from ECB President Christine Lagarde who says that the European economy has some way to go but the central bank has enough measures available in its arsenal to aid the bloc’s recovery. She also warns the U.S. election is adding to volatility. The WHO says that Remdesivir has limited or zero ability in treating Covid patients. And in luxury news, LVMH reports that the sale of leather goods has driven sales back into positive territory in Q3 despite a 7 per cent drop in group like-for-like sales.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Another round of U.S. virus talks stall as U.S. Treasury Secretary Steven Mnuchin says that an agreement seems unlikely before the election. Blowout earnings from Goldman Sachs weigh on U.S. futures and fail to rouse Wall Street. Standard Chartered CEO Bill Winters tells CNBC exclusively that banks are well capitalised in preparation for an event such as the pandemic. In France, President Macron slaps harsher restrictions on nine of the country’s biggest cities in a bid to halt the rise in Covid-19 cases. And in South Korea, Big Hit Entertainment, who manage K-pop sensation BTS, has almost doubled its stock price on its market debut.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. equities break a 5-day winning streak, deepening losses after Eli Lilly halts is Covid-19 drug trial over safety concerns. The Senate is set to vote on a leaner stimulus package, with IMF Chief Economist Gita Gopinath telling CNBC a rescue package deal could add 2 per cent to U.S. growth next year. Apple CEO Tim Cook hails a new era for the iPhone with the launch of its 12th edition, featuring new pricing and 5G capabilities. And Wall Street banks kick off earnings season with JPMorgan and Citi reporting big EPS beats.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

CNBC hears exclusively from German finance minister Olaf Scholz who says he believes his country’s economy can rebound to pre-virus levels by early 2022, but warned that European leaders need to show further fiscal cooperation. President Trump is back on the campaign trail in Florida after testing negative for Covid-19 but Dr Anthony Fauci says the U.S. is still under-prepared for a second wave in the winter. In tech news, Apple shares surge to their best day since July as investors eagerly anticipate the launch of the latest iPhone. Disney is revamping its business to increase its direct to consumer streaming business, with CEO Bob Chapek telling CNBC he welcomes input from activist investor Dan Loeb. And Johnson & Johnson is forced to halt vaccine trials after a participant falls ill but Russia believes its Sputnik vaccine could be widely available in the country by the end of October.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/priv

Democrats slap down a $1.8tn virus stimulus proposal in a further blow to hopes that an agreement can be reached before the U.S. election next month. President Trump claims he has fully recovered from his bout of Covid-19 and has returned to the campaign trail. France records a new infection high with more cities being placed on the maximum alert level, while Germany sees curfews enforced in Frankfurt and Berlin. In China, the PBOC slashes the forward reserve requirement in a bid to manage the yuan’s appreciation against the dollar.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

US stimulus plan keep markets in check, after mixed messages over the future of a stimulus deal. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin resume talks in an attempt to reach a piece-meal package. President Trump says he may hold a rally this Saturday after the White House physician says he has completed his COVID treatment and is not showing any symptoms that the illness is progressing. Meanwhile, Chinese stocks rally after the Golden Week holiday, as the country's service sector continues its comeback, with PMI indicators rising for the fifth straight month in September. But, global crude supply concerns persist as Hurricane Delta sweeps across the Gulf of Mexico, halting platform output, while Norwegian oil firms prepare to enter formal talks with unions over the strike action. And a grim day in Europe as many countries experience record infections. The World Health Organisation reports almost 97,000 new cases in the region, driving the global rate to another all-time high.See Privac