SQUAWK BOX, MONDAY 22ND APRIL, 2024

Chinese trade data beats expectations in April to show signs of stabilisation as demand improves both home and abroad. British chip designer ARM sees shares tumble almost 9 per cent in after-hours trade following gloomy revenue guidance which has fueled concerns of a slowdown in A.I. demand. President Joe Biden warns Israel the U.S. will pause weapons deliveries if the IDF invades Rafah. Markets are split ahead of the BoE rate decision later today over a potential rate cut forecast for June.   See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Theme park concerns weigh on Disney shares which tumble 10 per cent despite streaming service Hulu posting its first quarterly profit since launching in 2019. Social media platform Reddit sees its shares pop up by more than 15 per cent in extended trade, helped along by stronger-than-expected ad revenues as it posts its first results since going public. Chinese social media giant TikTok sues the U.S. government, saying that a potential ban of the app in America would violate the First Amendment. Former U.S. Treasury Secretary Steven Mnuchin tells our colleagues Stateside that he remains purchasing or investing in the business. Global debt soars by up to $1.3tn to a fresh record high of $315tn in Q1.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

UBS posts a $1.8bn beat in Q1 on both the top and bottom lines. The Swiss lender says its integration of Credit Suisse is on track. In Spain, Banco Sabadell rejects rival BBVA’s €12bn takeover bid for significantly undervaluing the bank as well as its growth potential. Chinese president Xi is hosted by French president Emmanuel Macron in Paris but sticks to a familiar diplomatic line, meeting in talks with Macron and European Commission President Ursula Von Der Leyen. And in the Middle East, Hamas agree to a ceasefire, but Israel rejects the deal which it says falls short of its demands, with the IDF targeting eastern Rafah.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Berkshire Hathaway’s cash pile balloons to $189bn. Warren Buffett uses the company’s AGM in Omaha, Nebraska to signal how it should be run once he passes. Wall Street closes the week in the green following a weaker-than-expected jobs print. This raised hopes that the Federal Reserve may consider cutting interest rates soon. Chinese President Xi Jinping arrives in Paris on the first leg of his European tour. His host, President Emmanuel Macron is to press him on trade relations and Ukraine support. And in the UK, Prime Minister Rishi Sunak admits to the challenges facing the Tory party following a bruising third-place finish in last week’s local elections. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Apple launches the largest share buyback in U.S. corporate history after beating Q1 expectations, despite a 10 per cent fall in iPhone sales. U.S. markets have rallied strongly ahead of today’s jobs report with investors anticipating signals about the Fed’s next policy moves. In the UK, local and mayoral election vote-counting is under way. We are live in Blackpool where Labour has regained the Red Wall constituency of Blackpool South, a significant blow to Rishi Sunak and the Conservative Party. And in mining news, Glencore launches its own bid for Anglo American which may trigger a bidding war following last week’s approach by rival BHP.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 rates unchanged with its fight against inflation faltering. Chairman Jerome Powell has signalled any return to rate hikes would be ‘unlikely’. Asia-focused bank Standard Chartered beats expectations to post a 5.5 per cent increase in Q1 pre-tax profit, benefiting from higher trading income. Qualcomm shares are up in extended trade as Chinese demand fuels an earnings beat. Meanwhile, Apple is expecting a double-digit decline in China sales when it reports later today. And in currency news, the yen soars to its strongest level in a fortnight before paring gains back, prompting further speculation the BoJ will intervene.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. stocks see out April in the red – their worst monthly performance in seven months with tech earnings leading the losses. Amazon posts a Q1 beat on the back of solid cloud growth and A.I. demand. However, guidance is softer than expected and CEO Andy Jassy warns of higher capex to come. Tesla CEO Elon Musk shuts down his supercharger team, costing two executive positions and hundreds of job losses as the EV maker struggles with waning demand and competition from China. A surprise fall in same-store sales at Starbucks prompts the coffee chain giant to slash its outlook. Shares have slumped to a 21-month low as a result. And Spanish luxury beauty giant Puig aims for the top of the price range ahead of its near €14bn IPO – the largest in Spain in almost a decade.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

HSBC CEO Noel Quinn is to retire after a 5-year tenure at the UK lender which is eyeing a further $3bn in buybacks following a Q1 beat. Santander is buoyed by its European retail banking sector, posting an 11 per cent rise in Q1 net profit. It has also confirmed its full-year targets. Wall Street is on track to break a five-month winning streak despite an upbeat session yesterday. Tesla shares saw their best performance in three years. We speak to IMF managing director Kristalina Georgieva who says she is concerned about global central bank divergence as Europe is making quicker progress in the fight against inflation than the U.S.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Tesla CEO Elon Musk makes a surprise visit to China, meeting with Premier Li Qiang. Beijing has moved to cut back on certain restrictions on Tesla vehicles made in the country. Rate cut expectations have been further dampened after another sticky inflation print out of the U.S. However equities Stateside still finished last week in the green, enjoying their best week since November. The yen/dollar trade remains volatile, briefly dropping below the key psychological level of 160. U.S. Secretary of State Antony Blinken travels to Riyadh while a Hamas delegation prepares for ceasefire talks in Cairo. We hear from Egyptian foreign minister Sameh Shoukry who urges both sides to meet to end the conflict. And in banking news, Deutsche Bank warns that long-term litigation costs may leave a €1.3bn hole in its bottom line.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

New data out of the U.S. shows the economy growing at its slowest pace in almost two years, causing equities to tumble and Treasury yields to spike. Tech earnings Stateside beat expectations in extended trade. Google owner Alphabet announces its first dividend with CEO Sundar Pichai hailing the company’s next wave of A.I. innovation and adoption. In Japan, the BoJ holds rates steady pushing the yen to a new 34-year low. Traders are now concerned whether policy makers will choose to intervene. Airbus confirms its guidance and backs its higher delivery goals as it boosts production of its A350 to extend its lead over troubled rival Boeing. And in Sydney, BHP shares struggle following reports that mining competitor Anglo American is unimpressed by yesterday’s takeover offer.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.