PBOC stimulus sends China equities soaring

The PBOC’s rate cuts come into effect with trillions of yuan worth of further stimulus measures potentially due next week. Beijing’s stimulus blitz causes Chinese equities to soar with markets on track to notching their best week since 2008. Commerzbank and Unicredit sit down for negotiations for the first time since the Italian lender aggressively increased its stake. Commerzbank shares are at their highest level in more than a decade on the back of upgraded targets. We are live in Tokyo where voting is underway to decide the next leader of the ruling LDP party.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Micron shares are up after the memory chip maker smashes Q1 revenue forecasts. Its bumper outlook pushes tech stocks up in Asia, helping along a regional rebound. Spanish lender BBVA’s head says European banks risk falling behind their U.S. peers if governments block M&A activity. We speak to the BNP Paribas CFO Lars Machenil who urges consolidation among Continental banks. We also hear from OECD chief economist Alvaro Pereira who says that the global economy is showing signs of stabilising but that governments should remain focused on fiscal discipline.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Commerzbank promotes CFO Bettina Orlopp to CEO as the German lender faces takeover advances by Italy’s Unicredit. Chinese equities see an extended rally following the PBOC’s decision to slash the medium-term lending rate as a part of a string of stimulus measures by the central bank. The move boosts the yuan to a 16-month high. On Wall Street, the Dow and S&P 500 record new record highs, shrugging off disappointing recent consumer confidence data. Israeli airstrikes kill a senior Hezbollah commander as well as hundreds of civilians. The Israeli President Isaac Herzog tells CNBC his country will ‘do whatever it takes’ to protect its citizens and cities.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Asian equities hit a two-and-a-half-year high following stimulus measures from Beijing. The PBOC cuts the seven-day reverse repo and the RRR in a bid to shore of up the country’s floundering property sector. Our CNBC TV 18 colleagues sit down with JP Morgan Chase CEO Jamie Dimon who says markets should remain cautious despite last week’s historical rate cut by the Fed. On Wall Street, the Dow and the S&P 500 notch new records as the Fed cut relief rally continues this week. German Chancellor Olaf Scholz slams Unicredit after the Italian lender increases its stake in Commerzbank to a potential 21 per cent. And we are live at the Labour Party conference in Liverpool where chancellor of the exchequer Rachel Reeves defends the government’s public finance decisions and says her budget next month will provide ambition rather than austerity.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

China surprises by slashing its key short-term repo rate and announcing a rare economic press conference which triggers speculation of further stimulus measures from Beijing. In France a new government drawn together by Prime Minister Michel Barnier is under threat from a vote of no confidence over his ministerial choices. Apollo Global Management is reportedly eyeing a $5bn investment in Intel while Qualcomm reaches out with a friendly take-over bid. And Rupert Murdoch’s REA Group ups its takeover offer for UK property firm Rightmove following last week’s initial rejection.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street notches its best day in six weeks with tech stocks leading the way as the markets celebrate this week’s 50bps Fed rate cut. In China the PBOC bucks expectations of a further rate cut and the BoJ stays put as well while hiking its forecast on domestic consumption. Mercedes slashes its profit outlook once again as Chinese sales fall. And in France, new prime minister Michel Barnier puts the finishing touches on his cabinet in a bid to end months of political deadlock following inconclusive elections in July.  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 announces its eagerly awaited first rate cut of 50 basis points since the outset of the Covid pandemic with policy makers predicting one further cut this year. The market reaction was mixed with Wall Street closing lower, despite the Dow and S&P 500 initially scaling fresh all-time highs. Equities in Asia saw strong gains following the news from the Fed. Our colleagues in Asia speak to Bridgewater Capital’s Ray Dalio who warns that soaring debt levels Stateside will still prove challenging for the central bank. We are live in Brittany, north-west France, where Spanish green energy giant Iberdrola opens a €2.4bn offshore wind farm. Chairman Ignacio Galan tells CNBC grid expansion is crucial. Investors await today’s Bank of England rate decision with a potential expansion of quantitative tightening expected.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

In anticipation of the Fed’s milestone meeting, the S&P 500 hits a new record with retail data indicating the U.S. consumer and economy are more resilient than expected. DoubleLine Capital chief Jeffrey Gundlach tells CNBC’s Scott Wapner at the Future Proof wealth management festival he is calling for a 50bps cut. Hezbollah points the finger at Israel after thousands of its pagers explode across Lebanon simultaneously, killing at least 9 and maiming more than 2,700. In pharma news, U.S. authorities expand approval of a Novartis breast cancer drug which would open access to patients at the earlier stages of the disease. Commerzbank is reportedly considering replacing CEO Manfred Knof with a new chief with a mandate to rebuff a Unicredit takeover. And in the UK, investors are increasing bets the Bank of England will cut rates this week, strengthening sterling.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The greenback falls and the Dow hits a record high with investors increasingly betting on a 50bps interest rate cut from the Fed later this week. In Japan, the Nikkei is in the red as the yen strengthens past ¥140 /USD, while a CNBC survey shows a split over the timing of the BoJ’s next rate hike. Struggling chip maker Intel sees shares soar in after-hours trading following its announcement about cutting costs and reining in spending. Meanwhile, Microsoft props up its shares by boosting its dividend and launching a $60bn buyback scheme as it reaps the benefits of its early push into AI.    See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Chinese data indicates a slowdown in industrial activity and property prices with pressure now increasing on Beijing authorities to increase spending and stimulate demand. The S&P 500 and Nasdaq notch their best week so far this year with bets rising that the Federal Reserve could slash rates by 50bps later this week. We speak to RBI governor Shaktikanta Das who says India can maintain its economic growth of 8 per cent but inflation and rates concern still linger. GOP presidential candidate Donald Trump is safe after what the FBI has described as an attempt on his life at his Mar-A-Lago golf course.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.