CNBC Daily Open: Hawkish hold from BOJ sets central bank stage

Hello, this is Katie Foley writing to you from London. I spend my mornings leading the London TV teams as we prepare to take Europe Early Edition and Squawk Box Europe to air. Over the last two months I can count on the fingers of one hand the days we haven't topped the shows with Iran - today is one of them. The Bank of Japan kicked off the week's central bank action with a hawkish hold, with three of the nine-member board dissenting, calling for a rate hike. The move pulled the Nikkei back from a record high. The Fed, Bank of England and European Central Bank are all expected to stand pat this week, but markets are ramping up bets on higher rates ahead. Geopolitics also taking a back seat to earnings. The latest to hit the tape this morning is Novartis, with the Swiss pharma giant missing quarterly profit forecasts, but still backing its full year outlook. Tune in to Squawk Box Europe at 07:30 BST for our interview with CEO Vas Narasimhan, live from Basel. Global stocks are holding near record high levels while in Asia, the Kospi's blistering run continues with South Korea overtaking the UK in total market cap, pushing U.K. stocks down into ninth place. The Iran war hits the two-mark month today, with White House press secretary Karoline Leavitt confirming President Donald Trump and his national security team on Monday discussed Iran's proposal to reopen the Strait of Hormuz if the U.S. lifts its blockade and the war ends. German Chancellor Friedrich Merz didn't mince words, telling students in Marsberg that the U.S. is being "humiliated" by Tehran's leadership. In slightly more diplomatic news, the U.K.'s King Charles and Queen Camilla arrive in the U.S. today, hoping to prop up the beleaguered Special Relationship with U.S. President always partial to bit of pomp and ceremony. The King addresses joint meeting of U.S. Congress later today, before a banquet at the White House tonight. But back in Britain, Prime Minister Keir Starmer is still in hot water, facing a vote today over a possible inquiry on if he misled the House of Commons over the appointment of former U.S. ambassador Peter Mandelson. — Katie Foley BYD draws EU scrutiny over labor abuse allegations at Hungary factory Electric car giant BYD has become the first Chinese business to be raised in the European Parliament over allegations of labor abuses in Hungary, CNBC has learned, following a watchdog's investigation into working conditions at the site. Contractors hired to build BYD's factory in Hungary allegedly kept thousands of employees working seven days a week, with shifts lasting more than 12 hours a day, according to a report published on April 14 by New York-based watchdog China Labor Watch (CLW). The group said it interviewed 50 workers and visited the factory site three times since October 2025. — Evelyn Cheng, Matthew Chin