Squawk Box Europe Express

Done deal…the White House and U.S. Senate finally agree on a massive $2tn stimulus package to mitigate the medical and economic fallout of the Coronavirus outbreak. The rescue agreement – the largest in U.S. history – drives Asian stocks sharply higher, after the Dow stages a massive rebound in its best day since 1933. India launches the world’s biggest lockdown with Prime Minister Narendra Modi ordering its 1.3bn-strong population to stay indoors for 3 weeks to stem the spread of the virus. In Tokyo, Prime Minister Shinzo Abe finally succumbs to pressure and postpones the Olympic Games until next year while in the UK, thousands of retired NHS staff will return to work and a new emergency hospital will be constructed in London’s ExCeL arena in the wake of the largest daily jump in Covid-19 cases.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Weeks, not months… President Trump promises to re-open the U.S. economy for business soon, however Congress blocks his stimulus package bill for a second time, weighing on Wall Street. Democratic and Republican senators once again disagreed over the contents of the legislation. But Asian stocks surge as the Fed promises to buy an unlimited number of government bonds. Oil prices also rally. Prime Minister Boris Johnson locks down Britain in order to stem the spread of Coronavirus, barring gatherings and all but the most essential trips out of home while Spain reels from the outbreak as the national death toll surpasses 2,000. In corporate news, German steel giant ThyssenKrupp decides to scrap its 2020 profit outlook while Spanish lender Santander adjusts its dividend policy for the year.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Stocks stumble on a stimulus snag … U.S. futures drop, briefly hitting limit down, after major indices recorded their worst week since the 2008 financial crisis. Part of President Trump’s $2tn stimulus package doesn’t win approval in the Senate with Democrats criticising the bill for helping large corporates over average workers in the face of the Coronavirus outbreak. Oil prices near a 17-year low in a volatile session. In Germany, Chancellor Angela Merkel goes into quarantine and limits social gatherings to two people. Berlin is also set to approve a €500bn bailout fund, breaking its long-held ‘Black Zero’ debt policy. Italy has increased travel limitations to combat the spread of the virus after the death toll surged over the weekend. Prime Minister Giuseppe Conte has warned that the economic impact of the virus will be felt throughout the country. And in corporate news, Airbus has withdrawn its full-year guidance due to the economic volatility caused by the pandemic.See Privacy Policy at https://art1

Coronavirus counter-measures...Pressure on stocks ease slightly as central banks take more action. The U.S. Federal Reserve extended its swap lines to another nine central banks in a bid to mitigate the effects of the Coronavirus outbreak. President Trump also says that the government could take stakes in troubled corporates – something not seen since the automotive industry was bailed out. Italy is now the centre of the pandemic with deaths surpassing those of China for the first time. The BoE has cut rates to a historic low of 0.1 per cent to boost sterling up from 35-year lows. Prime Minister Johnson, however, has not ruled out further rescue measures to shore up British business.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Extraordinary times…ECB President Christine Lagarde launches a €750bn rescue package to counter the Coronavirus pandemic while the BOJ sets out a ¥1tn JGB purchase plan. The stimulus, however, fails to lift market sentiment with Asian stocks falling while U.S. futures fail to hold on to brief gains after the Dow falls through the 20,000-point mark. In an exclusive interview with CNBC, legendary hedge fund investor, Bill Ackman, issues a stark warning about the outbreak and urges the U.S. government to shut the country down. In energy news, oil falls 20 per cent, putting it on track for its worst week in history but WTI is back up after hitting its lowest level in 18 years. And in the UK, London braces for imminent lockdown as Prime Minister Boris Johnson closes schools and the national Coronavirus death toll tops 100.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A short-lived rebound … the major U.S. averages rally by more than 5 per cent on the back of stimulus hopes but U.S. futures fall and Asian stocks turn lower. President Trump’s administration promises a massive $1tn rescue package in light of the global Coronavirus crisis, including tax breaks and cash handouts. A CNBC source learns that U.S. Treasury Secretary Steven Mnuchin has warned senators that U.S. unemployment could hit 20 per cent if his fiscal proposals are not enacted. In the UK, Chancellor Rishi Sunak unveils a £350bn fiscal programme to shore up businesses affected by the outbreak and says he won’t hesitate to increase this figure should demand increase. Meanwhile in Brussels, the EU shuts its external borders with the drastic lockdown set to last for a month at least.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The worst day since Black Monday…the Dow suffers a 3,000-point sell-off in its third-biggest loss ever, and the most dismal day since 1987. The market’s volatility gauge - the VIX - swings to a record high as President Trump warns the U.S. economy could fall into recession. The U.S. also says the outbreak could drag into August. U.S. airlines have said they will require a $50bn bailout which could be the largest rescue package since the terrorist attacks of 9/11. In auto news, VW posts solid full-year data for 2019 but says that guidance for 2020 has now become impossible. Airbus temporarily suspends work at its French and Spanish assembly plants in order to contain Coronavirus. And in the UK, Prime Minister Boris Johnson ramps up restrictions and advises Britons against non-essential contact and travel.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Big bazooka…the U.S. Federal Reserve launches a round of emergency measures, cutting interest rates by 100 points to zero, initiating a $700Bn QE programme, which includes treasuries and mortgage-backed-securities purchases. It also injects additional dollars in a coordinated action with other central banks around the world. Chairman Jerome Powell says liquidity is the top priority in light of the volatility caused by the Coronavirus outbreak. The markets, however, are not convinced. U.S. futures plunge, hitting limit-down, as the Dow drops 1,000 points. Asian indices fare no better, despite additional measures by the Bank of Japan. Europe shuts down, with Spain quarantining its 46m citizens and France and Germany closing large parts of their economies and beefing up border security. Boris Johnson’s government is pressured to do more as President Trump’s travel ban is extended to the U.K. and Ireland as of tomorrow. And there is dismal data from China as industrial production and retail numbers coll

The worst session since Black Monday in 1987. The Dow sheds another 10% as the Fed's $1.5 tn cash injection fails to stem the declines. But US futures turn cautiously higher and Asian stocks come off session lows. In Europe, ECB President Christine Lagarde tells CNBC exclusively that fiscal policy should be the first front in the fight against the outbreak. Lagarde also rejects President Trump's branding of COVID-19 as a 'foreign virus'. France becomes the latest European country to shut schools, as President Emmanuel Macron pledges to do “whatever it costs” to prop up the economy against the virus outbreak. Airline shares across the world plunge deep into the red on the U.S.’s TransAtlantic travel ban, with European leaders pledging to support the region's hardest hit carriers.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A Transatlantic Travel Ban. President Trump bans travel between the U.S. and Europe and blames the Continent for 'seeding' virus hotspots in the States, sending US futures sharply lower. It’s the end of an 11 year bull run as the Dow pushes into bear market territory. This as the World Health Organization officially declares coronavirus a pandemic. Asian stocks follow suit, with the Nikkei falling more than 4 percent. Italy's lockdown tightens. The government closes all but essential services in the toughest restrictions since World War 2. And the pressure piles up on the ECB to act, with analysts predicting a mix of policy measures and rate moves to help the euro zone economy cope with the market shocks.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

In a special edition of the Squawk Podcast, we bring you two parts of our 3 hour programme. Part 1: A whipsaw session as US stocks swing from a 900 point rally, to the brink of bear market, and back again, while Asian equities take a leg down amid unanswered questions over US stimulus. US Futures also trade lower after President Trump pitches a zero percent payroll tax rate, but his team fails to provide details on a promised fiscal package. EU leaders pledge decisive action to tackle coronavirus, announcing fresh investment and measures to prop up small business. Part 2: The Bank of England surprises markets with a 50 basis point cut, lowering interest rates from 0.75% to 0.25% and joining the Fed in delivering its first emergency move since 2008. The BOE warns that economic activity will weaken significantly due to the Coronavirus shockSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Rebounding from a historic rout. U.S. markets come close to entering bear market territory after the Dow sinks 2,000 points as virus fears and an oil price war knock 5 trillion dollars from stocks. But crude prices bounce back from the worst day in almost 3 decades and US futures rise as President Trump teases potential stimulus including a payroll tax cut, ahead of meetings with congressional Republicans and Wall Street executives. Italy quarantines the entire country as Europe's fourth biggest economy becomes the largest outbreak outside China. Prime Minister Giuseppe Conte says it faces its 'darkest hour'. And finally Chinese inflation slows and factory prices fall as the virus continues to weigh on the economy, while fresh research points to a more than 50 percent plunge in monthly mobile phone sales.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Oil price war. Crude prices crash 30 percent in the worst day since the Gulf War, as Saudi Arabia floods energy markets, looking to punish Russia for obstructing OPEC-Plus output cuts. Asian stock markets plunge with the Nikkei hitting a 14-month low and Australia's benchmark index posting its worst fall since the financial crisis, while US futures trade limit down, pointing to another rough day on Wall Street. US 10-year treasury yields hit a new record low as the prospect of rates turning negative becomes a reality, while the 30-year yield goes below 1 percent for the first time ever. Over 16 million people are put into lockdown in Italy as the government takes drastic measures to stem the worst outbreak outside China. But leaks of the action cause confusion and a rush across regional borders. And finally women rally across the globe to mark International Women's Day, upping calls for equal pay and fair representation.See Privacy Policy at https://art19.com/privacy and California Privacy Noti

A week of swings… The Dow suffers another near-1,000 point drop, as Coronavirus fears take hold again while Asian equities move deeper into the red. The yield on the U.S. 10-year treasury falls to another record low, nearing 0.8 per cent. Bond king Jeffrey Gundlach tells CNBC the outbreak has put a fork in the economy and could tip the U.S. into recession. Oil prices slide despite OPEC's decision to make the biggest output cut since the 2008 crisis, if Russia gets on board. Secretary-General Mohammed Barkindo tells CNBC extreme circumstances warrant the move.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

On the up… Chinese stocks hit a two-week high after the Dow surges more than a thousand points boosted by healthcare stocks and Joe Biden's strengthened bid in the Democratic presidential race. The U.S. House of Representatives passes an $8bn emergency funding bill to combat COVID-19, while the IMF sets aside a $50bn aid package, as managing director Kristalina Georgieva warns global growth will slow this year. Oil prices start to rebound as Opec meets in Vienna, with Russia reportedly pushing back against Saudi plans to slash supply cuts even further. And in corporate news, troubled UK regional airline FlyBe goes into administration just two months after securing a controversial government rescue deal. Coronavirus is cited as adding to the carrier’s woes.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Emergency action: the Federal Reserve surprises markets with the biggest rate cut since 2008, but fails to lift sentiment. The Dow plunges nearly 800 points, while Asian stocks lack direction. But the emergency measure, designed to tackle the impact of the virus outbreak, sends the U.S. 10-year treasury yield below 1 per cent for the first time ever. The WHO warns the death rate of Coronavirus is higher than originally anticipated, adding that travel restrictions are not enough to contain it. The economic pain is detailed further as China's services sector records its worst month on record, plunging to just 26.5 and escalating a string of disappointing data. And in the U.S., Democrat hopeful Joe Biden eyes victory on Super Tuesday following early results but Bernie Sanders is forecasted to win in delegate-heavy California.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Bouncing back…Wall Street closes a turbulent day sharply higher, as the major indices roar back from last week’s sell-off. The Dow posts its biggest point gain ever, fuelled by a rally in Apple shares. Chinese stocks mostly follow suit, but the Nikkei fails to build on the rally. The ECB is the latest central bank to pledge support to mitigate the economic impact of Coronavirus, saying it is ready to adjust all instruments. The RBA becomes the first to act, cutting rates by 25 basis points to a record low and G7 finance ministers are set to hold an emergency call to discuss the crisis. We also preview the Super Tuesday showdown in the U.S. where one third of delegates are up for grabs. Joe Biden’s campaign is gaining momentum against frontrunner Bernie Sanders following endorsements from several more former Democrat rivals.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

China contracts…PMI numbers show factory activity nosedives in February but local stock markets are up, in anticipation of stimulus from the PBOC. We are live in Riyadh where we speak exclusively to the WHO director-general, Tedros Adhanom Ghebreyesus. He tells this channel that while the window for containing Coronavirus globally is narrowing, markets shouldn’t panic. Despite the outbreak death toll surpassing 3,000 and the first reported American fatalities, U.S. futures turn to the upside. In Italy, the government has announced it will pump €3.6bn into the economy to mitigate the impact of the virus and avoid a recession. And in corporate news, Nokia CEO Rajeev Suri has agreed to step down amid reports of a potential sale due to struggling profits at the telco giant.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Worst week…the Dow Jones plunges by more than 1,000 points into correction territory as Coronavirus fears rise. Global stocks look set to post their deepest losses since the 2008 financial crisis. Asian equities nosedive in Friday’s session and U.S. futures point lower once again, while the market’s volatility gauge, the VIX, is on track to make its second-biggest weekly jump in history. The outbreak also fuels expectations the Fed could ramp up easing measures, with investors predicting at least three rate cuts this year, sending the dollar sharply lower against the euro. But a major takeover is forged despite the sell-off, as German industrial titan ThyssenKrupp agrees to shed its elevator unit to a private equity consortium for more than €17bn - the biggest buyout in Europe since 2007.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Nikkei leads the Asian sell-off after the Dow fails to hold onto gains amid rising Coronavirus fears. American health authorities confirm a first potential ‘community-spread’ case in northern California and the number of fresh Coronavirus cases reported outside China tops those reported in the country for the first time. President Trump plays down fears of a global pandemic and puts Vice-President Mike Pence in charge of his administration’s response. In Germany, however, the reaction is more urgent with health minister Jens Spahn urging state health authorities and employers to brace for a possible accelerated outbreak in the federation. In corporate news, Standard Chartered posts a 46 per cent jump in full-year profits but says that meeting its 2020 targets will be hindered by slowing global growth as well as the Coronavirus. We speak to the Asia-focused lender’s CEO, Bill Winters, on set. We are also live in Zurich where LafargeHolcim cites ‘solid’ Chinese performance for its record net full-