Squawk Box Europe Express

Nissan and Honda officially begin merger talks which will create the world’s third largest automaker with ¥30tn in sales. Volkswagen shares are flat despite the German giant reaching an agreement with labour unions over annual cuts of €4bn and averting further strikes. In insurance news, Aviva is to buy up rival Direct Line in a deal worth £3.7bn. The deal will make it the largest home and car insurer in the UK. U.S. futures are up at the start of holiday-shortened week while President-elect Donald Trump threatens to seek American ownership of the Panama Canal over ‘ridiculous’ shipping fees. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The U.S. is on the brink of a government shutdown, after the House rejects an amended Republican bill hours from the deadline. The Dow ekes out a gain, snapping its longest losing streak since 1974, as investors count down to today’s PCE print. Japanese core inflation came hotter than expected, slowing the Yen’s decline and pressuring the BOJ to hike rates. Nike shares reverse its gains as CEO Elliot Hill says the sport’s giant’s turnaround plan will be an uphill battle, while blaming deep discounts for declining revenue.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Markets were spooked after Fed Chair Powell delivers a hawkish cut and signals less easing in 2025 and beyond, with the dollar spiking, treasury yields climbing, and U.S. equities sinking. More fuel was added to fears over fewer rate cuts as President-elect Trump threatens to thwart a bipartisan funding bill, pushing the U.S. government closer to shutdown. Asian equities follow their Wall Street peers into the red, while the BOJ keeps rates on hold, as expected. Economists forecast a hold from the Bank of England as interest rates hit a three-decade premium against Germany amid higher inflation and weaker employment data.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wall Street retreats from record highs, with the Dow dipping for a 9th straight session as Nvidia sinks deeper into correction territory. The Federal Reserve is gearing up to deliver its third interest rate cut in a row despite stronger-than-expected retail sales, while the outlook for future cuts remains mixed. In Asia, the Bank of Japan is also gathering to make its final policy decision of the year, as Japanese exports surge in November. Meanwhile, Nissan and Honda mull a merger as Japanese carmakers grapple with slowing demand and tough competition in the EV sector.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.