Squawk Box Europe Express

ASML smashes Q2 estimates and hikes its FY guidance as huge A.I. demand offsets disappointing performance in the Chinese market. President Trump reverses his call for fees on tankers leaving the Strait of Hormuz under U.S. naval protection following investment pledges from GCC nations as a means of compensation. U.S. CPI slows more than expected as energy prices fall. Newly appointed Federal Reserve Chairman Kevin Warsh makes his first Congressional appearance and promises to keep his position independent from the White House while bringing down inflation. In luxury news, Richemont enjoys a 20 per cent boost in sales, beating estimates from Q1 with strong growth seen across the Americas and Asia.
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The U.S. and Iran trade strikes for a third consecutive night with President Trump declaring American forces are blockading the Strait of Hormuz and demanding a 20 per cent levy on all cargo. Trump says he remains positive on being able to reach a peace deal with Tehran. The renewed conflict pushes Brent to its biggest one-day surge since the Covid pandemic. The UK and Switzerland sign a services trade deal ahead of Rachel Reeves’ last Mansion House speech under Keir Starmer’s premiership. We speak top Trade Minister Chris Bryant who predicts the incoming Burnham government will seek ever-closer ties with the European Union.
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Crude prices rise as the U.S. and Iran exchange fire with both sides claiming control over the Strait of Hormuz. SK Hynix shares fall in Asian markets following the chip maker’s $26bn U.S. ADR listing. Tech selling and Middle East uncertainty push Asian equities lower and trigger circuit-breakers on South Korea’s KOSPI. European futures are also in the red following a four-day winning streak. Nippon Paints offers to buy Akzo Nobel’s decorative paints arm for €7.5bn following a previous rebuttal for the Dulux-maker’s entire business.
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SK Hynix’s U.S. listing raises $26.5bn with investor demand said to be seven times oversubscribed. The Nasdaq listing is the largest by a foreign company on Wall Street. Technical talks between Washington and Tehran are ongoing despite this week’s tit-for-tat attacks. Crude is set to break a four-week losing streak with the recent tensions threatening to trigger concerns about supply from the Gulf. In Germany, Volkswagen cuts capacity and slashes its model line-up in half but pulls back from announcing 100k job cuts as it faces worker and union protests at its car plant in Zwickau.
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The U.S. and Iran exchange fire for a second day with President Trump threatening to increase the intensity of airstrikes. Kuwait and Bahrain suffer retaliatory attacks on U.S. bases while Qatar upgrades its security alertness. Speaking at the NATO summit, President Trump tells CNBC the conflict will not escalate into all-out war, insisting Washington’s objective is to prevent Tehran obtaining a nuclear weapon. Despite Trump’s declaration the MOU with Iran is over, markets remain sanguine. However, Brent nudges closer towards the $80-mark.
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