World Markets Live - April 26 - CNBC Live Events
×

CNBC Live Events

World Markets Live - April 26

We’ll be updating you throughout the day with essential breaking news, data alerts, earnings reports and all the major market movements.

  • Good morning and welcome to World Markets Live. Full blog coverage will commence at 0600 BST. For now, here are the opening calls for Europe.
     
    FTSE 100               7273 -0.8
    DAX 30                  12476 +6
    CAC 40                  5284 +8
    FTSE MIB             20787 +9
    Comment ()
  • These are your top headlines this morning.
     
    • The Nasdaq hits a record high while the Dow climbs over 200 points for the second straight day as President trump backs away from a fight over funding his wall.
    • President Trump prepares to slash corporate taxes in the U.S. while potentially adding billions to the federal deficit.  
    • Ivanka Trump meets Angela Merkel and Christine Lagarde at a women's summit in Berlin and gets booed by the crowd as she defends her father's record
    • A busy week for earnings motors on with Daimler, Peugeot and Santander all set to report their latest set of numbers.
    Comment ()
  • Santander reports Q1 net profit of 1.87 billion euros. Interest income was 8.4 billion euros.
     
    The bank says its return on tangible equity was 12.13 percent in the first quarter.
     
    The Spanish lender says it is on track to reach all strategic targets.
    Comment ()
  • Major Asian markets made strong gains in the overnight session. 
     
    Asian equities rose to a near two-year high, buoyed by a jump in risk appetite following the centrist victory of Emmanuel Macron in the first round of the French presidential election that has also lifted the euro and pressured safe-haven assets, according to Reuters.  
     
     
    Comment ()
  • Credit Suisse reports pre-tax income of 670 million Swiss francs. The bank says it is maintaining capital discipline with look-through CET1 ratio of 11.7 percent and look-through CET1 leverage ratio of 3.3 percent.
     
    Revenue was 5.5 billion Swiss francs in Q1 versus 4.6 billion  the year before. 
    Comment ()
  • Dassault Systemes reports Q1 non-IFRS total revenue of 765.7 million euros versus 693.5 million the year before.
     
    Operating income rose 10 percent to 200.7 million euros from 181.7 million last year.
    Comment ()
  • Triple-digit gains for the Dow for the second day in a row, as the Nasdaq closes above 6,000 for the first time ever in an earnings-driven market rally during the U.S. session. 
     
     
    Comment ()
  • Hyundai Motors reports Q1 operating profits of 1.25 trillion won and revenue of 23.37 trillion won, beating expectations of 1.21 trillion and 22.68 trillion respectively.
     
    The company says uncertainty in the business environment is likely to continue for the time being, and says China retail sales fell 14 percent in Q1 from a year earlier.
    Comment ()
  • BHP Billiton has slashed its full year production guidance for copper and coking coal as poor weather at its Australian coal mines and industrial action in Chile at Escondida weighed on the miner. 

    BHP added it was moving forward the sale of its onshore U.S. petroleum interests amid increased pressure from activist shareholder Elliott Management to detach the units from the company.
    Comment ()
  • Caterpillar and McDonald's reported earning yesterday, sending their share prices higher. The companies were the top performing stocks on the Dow Jones index.
     
     
    Comment ()
  • Peugeot Citroen reports Q1 revenue growth of 4.9 percent to 13.63 billion euros. Revenue from the auto division rose 2.5 percent to 13.63 billion euros.
     
    The group expects the auto market to grow 1 percent in Europe and 2 percent in Latin America in 2017.
    Comment ()
  • Daimler reports Q1 revenue of 38.8 billion euros. Net income for the quarter was 2.801 billion euros.
     
    The company's CFO says it is very confident to achieve 2017 financial goals.
    Comment ()
  • Crude prices are under pressure after data from the American Petroleum Institute showed US crude inventories rose last week. 
     
    WTI has fallen for seven of the past eight sessions, according to Reuters.
     
     
    Comment ()
  • CNBC’s Hadley Gamble is live from International Finance Centre at the Abu Dhabi Global Market for a Middle East business update.
     
    She spokes to the chairman of Abu Dhabi Global Markets, Ahmad Ali Al Sayegh, about the region’s shift towards financial services.
     
    We will be the leading financial center in the region, and we hope a gateway to the world. We are ambitious but we set our sights on realistic targets.
     
    We think the region will consolidate into Abu Dhabi. Liquidity will flow more through Abu Dhabi and the markets will flourish as a result.
     
     
     
    Comment ()
  • Shares in Chipotle rose nearly 3 percent in after-hours trading after the fast foot restaurant topped estimates to report a near 18 percent rise in first quarter sales.  

    Shares had hit 7 percent at one point before retreating on comments made by CFO Jack Hartung, who said the Mexican grill was investigating unauthorised activity in its payments system. 
     
     
    Meanwhile, shares in Wynn Resorts soared in after-hours trading after the company reported better than expected earnings and revenue. 

    The casino operator posted over $100 million profit in the first quarter and an almost 48 percent increase year on year in net revenues. Wynn also announced it is going to start construction of a $1.5 billion lagoon-theme park in Las Vegas by the end of the year.
    Comment ()
  • Logitech has posted its highest retail sales growth in 6 years with profit hitting a 9 year high.
     
    Bracken Darrell, CEO and president of Logitech, says it is an exciting time to be in the computer peripherals space.
     
    There’s just more opportunities than ever and we’re just having an exciting time. 
     
    There’s a constant upward trend of opportunities. What’s happening for us is we’ve moved from being a peripheral provider around the PC to a peripheral provider for cloud services.
     
    As you know there’s just more and more cloud services available and that gives us more and more opportunity. Right now, 95 percent of our business is growing.
     
     
     
    Comment ()
  • Credit Suisse has announced a 4 billion Swiss Franc capital hike after posting the best quarterly profit since starting its restructuring plan under CEO Tidjane Thiam.
     
    Thiam told CNBC the capital raise removes future uncertainty.
     
    If we go back in time a little bit, in 2015 what we said was that we needed 9 to 11 billion (Swiss francs) in total. We raised 6 in the first capital raise that you remember; we generated another 1 billion through various internal measures for 7.
     
    It was always the intention to raise 2 to 4 billion in 2017. The question then was how? 
     
     
    Comment ()
  • These are the top headlines for the hour.
     
    • Credit Suisse announces a capital hike and hopes to raise 4 billion Swiss Francs after posting the best quarterly profit since starting its restructuring plan under CEO Tidjane Thiam.
    • Santander gets a Brazilian boost as the Spanish bank sees profit rise 14 percent in the first quarter, showing strength in South America
    • The Nasdaq hits a record high while the Dow climbs over 200 points for the second straight day as President trump backs away from a fight over funding his wall.
    • The President also prepares to slash corporate taxes in the U.S. while potentially adding billions to the federal deficit. 
    Comment ()
  • Novozymes reports sales in Q1 grew 3 percent organically and by 4 percent in Danish krone.
     
    EBIT grew by 6 percent. The company said its outlook for 2017 is maintained.
    Comment ()
  • The London Stock Exchange reports Q1 total income from continuing operations up 19 percent to £458.7 million.
     
    Q1 gross profits, after the cost of sales, was up 17 percent. 
    Comment ()
  • Dassault Systemes has reported first quarter non-IFRS revenues of nearly 767 million euros. 
     
    The French software multinational said operating income jumped by 10 percent during the period, as it upgraded its 2017 financial objectives. The company now targets revenue growth of 6 to 7 percent. 
     
    Bernard Charlès, CEO of Dassault-Systèmes, says the first quarter shows the company is in good shape for the full year.
     
    We can deliver double digit growth, which is, I think, something that shows the long term. You have to keep in mind that the Dassault-Systèmes revenue structure is highly recurring revenue, so we basically have a model which is almost aligned with the cloud model of having recurring revenue, so when you want to grow you have to grow new licenses a high number to continue to increase the snowball anyway.
     
     
     
    Comment ()
  • Novozymes has posted a 6 percent rise in first quarter EBIT, which came in line with estimates. The Danish biotech company, which maintained its 2017 outlook, saw sales hit 3.75 billion krone, beating expectations. 
     
    Peder Holk Nielsen, CEO of Novozymes, says the company has had a good start to the year.
     
    It’s roughly in line with our expectations, but slightly better, so again a good start to the year, but there’s still only 3 months. We still have 9 months to navigate still, so we maintain our guidance for the full year.
     
    On the topic of how future energy policy in the U.S. will affect the business, Nielsen said the outlook for 2017 was pretty stable.
     
    We saw a 6 percent growth in our business in the first quarter here. The underlying ethanol output is actually up 4 percent, so we’re not that fearful about the outlook for 2017.
     
    The policy measures might have an effect as you go slightly longer term, but that I think is way too early to talk about.
     
     
    Comment ()
  • On the topic of the French elections, Robin Bew, CEO of The Economist Intelligence Unit, explains why the optimistic mood following the first round results may be seeping out of markets.
     
    People are now turning their attention to what is going to happen in Parliament, because I think the really interesting thing about what’s going to do on in France is we’re pretty clear that Macron’s going to win.
     
    All the polls seem to be suggesting that and in France the polls appear to be better than in Britain.
     
    Bew says the big issue is Macron’s ability to get things done, as he is unlikely to have a majority in the parliament and may struggle to push through his reforms.
    Comment ()
  • Robin Bew, CEO of The Economist Intelligence Unit, doubts President Donald Trump will be able to pass a tax cut of the corporate tax rate to 15 percent.
     
    Could he afford to do it? Well, no, not in the long run. What we understand is it would be unfunded, or more specifically would be funded through the economic boost that they hope this will generate.
     
    That looks pretty unlikely, so the latest assessment, not ours, is that it would open a $2 trillion hole on a 10-year horizon.

    Bew says it won’t work because the positive economic impact of this kind of tax cut won’t boost growth sufficiently.
    Comment ()
  • French consumer confidence data for April remains unchanged at 100, matching forecasts, according to INSEE.
    Comment ()
  • European markets are expected to open broadly flat on Wednesday. The rapid market rally seen on Monday following the result of the first round of the French presidential election seems to have cooled off.
     
     
    Comment ()
  • Credit Suisse has announced a 4 billion Swiss Franc capital hike after posting the best quarterly profit since starting its restructuring plan under CEO Tidjane Thiam.
     
    On the topic of the French elections, Thiam had this to say.
     
    We can think about it from the clients’ perspective. What we see is much more confidence in the clients. The outcome that was feared at one point, which Melechon – Le Pen second round, which I didn’t believe likely, but was very much in the market. The relief from not having seen that has helped sentiment a lot.
     
     
     
    Comment ()
  • European markets are now open. The Stoxx 600 is down about a tenth of a percent.
     
     
    Comment ()
  • Major European markets are under performing at the start of Wednesday trade, with the bourses giving up some of the gains made yesterday.
     
     
    Comment ()
  • A negative reaction for Dassault Systemes, which has reported first quarter non-IFRS revenues of nearly 767 million euros. 

    The French software multinational said operating income jumped by 10 percent during the period, as it upgraded its 2017 financial objectives. The company now targets revenue growth of 6 to 7 percent. 
     
    Shares in the company are down more than 3 percent in trade today.
     
     
    Comment ()
  • David Miller, executive director at Quilter Cheviot, shares his views on the current state of the market.
     
    I’m a buy on the dip person, and the reason for that is the market seems to have been through 3 or 4 mood swings over the past 9 months. It was the great rotation, no that didn’t happen; it was the reflation trade, frankly Trump not delivering, that isn’t happening.
     
    So we’re really back to what I’d describe as business as usual, the new normal, where interest rates, inflation, growth are all moderate and therefore you find good companies.
     
    Miller says if President Trump presents a plan for tax reform today, that is good news, but whether he can get it passed is another story.
     
     
    Comment ()
  • Sweden's consumer confidence reading for April is 103.4, versus 102.6 in March. Manufacturing confidence for the country also increased, rising to 123.2, versus 112.7 in March.
    Comment ()
  • Kering's shares have hit an all time high after the luxury retailer reported a 28 percent rise in first quarter sales, beating forecasts.
     
     
    Meantime, shares of LVMH have also hit a record high on the back of the announcement by LVMH's CEO that it will combine the Christian Dior couture brand into the luxury goods empire. Through a series of transactions, the two luxury goods giants will become a single company. 
     
     
     

     
    Comment ()
  • David Miller, executive director at Quilter Cheviot, discusses the rise of robo-advisors.
     
    When I listened to the investment managers talk about how they used A.I. mechanistically to manage money, I was beginning to worry about my day job, but then it occurred to me that they were talking about a flat Earth.
     
    They were talking about a 2D world, where markets were liquid, where governments didn’t change the rules on you with no notice, and that inflation wasn’t really going to be a problem taking a longer term.
     
    It struck me that all of those things were massive assumptions and that the human intelligence bit is more likely to be able to cope with those left field issues as they come along in the medium to long term and make a decent return, whereas the A.I. machines that have been built, simply can’t cope with that modular way of looking at the world.
    Comment ()
  • These are the main headlines following the market open.
     
    • Credit Suisse announces a 4 billion Swiss Franc capital hike after posting the best quarterly profit since starting its restructuring plan under CEO Tidjane Thiam.
    • Santander gets a Brazilian boost as the Spanish bank sees profit rise 14 percent in the first quarter, showing strength in South America
    • Kering shares soar to the top of the Stoxx 600 after the Gucci owner reports a 28 percent rise in comparable sales for the first quarter.
    • Daimler lifts its guidance with strong Mercedes sales helping to double profit at the group.
    Comment ()
  • Shares in Metro Bank have opened significantly lower after posting its quarterly results. 
     
    This despite reporting an increase in adjusted pretax profit and record net deposit growth in the first quarter.

    Vernon Hill, chairman of Metro Bank, says the challenger bank has had its best quarter ever.
     
    Momentum is really growing with Metro Bank every quarter. Whether its deposits or loans, earnings are growing. We’re very excited that this month we’ll pass 1 million accounts. That’s sort of a magic number for a company starting from scratch.
     
     
     
    Comment ()
  • Vernon Hill, chairman of Metro Bank, discusses the benefits of the challenger bank’s business model.
     
    This model is about taking market share from the big four. Even today, we only have 1 percent of the greater London market. There’s always movement in the economy, there’s always movement in the market. This model is fundamentally different. The customers become fans, the fans remain loyal, they bring their friends. That’s why you get this very high growth.
     
     Shares are down almost 2 percent today, but year to date they are up 20 percent.
     
     
    Comment ()
  • Crude prices remain under pressure after data from the American Petroleum Institute showed US crude inventories rose last week.
     
    This, as global supplies hit record highs and investors look to Saudi Arabia to anchor an extension of the OPEC/non-OPEC output agreement. 
     
     
    Comment ()
  • Robin Bew, CEO of The Economist Intelligence Unit, predicts U.K. Prime Minister Theresa May will increase her party’s majority in parliament substantially in the upcoming election, but also issues a caution.
     
    We’re a big skeptical that she will increase it in line with the polls, so I think there’s some good reasons to think it might actually be a bit more difficult for them to deliver that massive swing that we’re seeing, the 150 majority that some people are talking about. That might be quite tough.
     
    One thing you may see is that turnout could be pretty low. It seems to me that the country is quite jaded with turning up to vote right now. This feels a bit cynical this election, that will have an impact and make it a bit more difficult.
     
    Bew hopes the election will allow May to pursue a softer Brexit deal with Europe. He predicts there will be compromises and May will look for sector specific deals, leading to a softer Brexit then some were expecting.
    Comment ()
  • These are the top headlines for the hour.
     
    • Shares in Credit Suisse trade sharply higher as it announces a 4 billion Swiss Franc capital hike - that's after posting the best quarterly profit since starting its restructuring plan under CEO Tidjane Thiam.
    • Santander gets a Brazilian boost. The Spanish bank sees profit rise 14 percent in the first quarter, showing strength in South America.
    • Kering shares hit an all-time high after the Gucci owner reports a 28 percent rise in comparable sales for the first quarter.
    • Daimler shares shift up a gear. The car maker lifts its guidance as strong Mercedes sales help to double profits.
       
     
    Comment ()
  • Shares in Credit Suisse are trading sharply higher after it announced a 4 billion Swiss Franc capital hike.
     
    The Swiss lender also posted its best quarterly profit since starting its restructuring plan.
     
     
     
     
    Comment ()
  • Poland's unemployment figure for March fell to 8.1 percent, according to the country's stats office.
    Comment ()
  • Handelsbanken shares are under pressure, despite the lender having posted an 8 percent increase in operating profit in the first quarter, beating expectations.
     
    Numbers were boosted by lower than expected loan losses and cost reductions.
     
    Anders Bouvin, the CEO of Handelsbanken, says the company is pleased with the results.
     
    We can see that our branch led banking model continues to bear fruit. We are growing in all our home markets and we saw that this has been a trend for quite a while now and the income is up, so I think it’s a solid quarter.
     
     
    Comment ()
  • Anders Bouvin, CEO of Handelsbanken, explains to CNBC how the lender is improving efficiency.
     
    We do see that the restructuring programme that we launched in Sweden a year ago is bearing fruits and the costs are going down and efficiencies are up in the organization and the cost-income ratio is at a very low level, just over 44 percent.
     
    Shares in the bank are down today, falling more than 2 percent.
     
     
    Comment ()
Powered by ScribbleLive Content Marketing Software Platform