World Markets Live - December 13 - CNBC Live Events
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CNBC Live Events

World Markets Live - December 13

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. We'll kick off at 6am, for now here's the morning calls from IG.

    FTSE -4     6873
    CAC -10    4748
    DAX -9       11173
    MIB -53      18275

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  • Here are your top headlines at the start of the day.

    • Unexpected strength in the world's second largest economy. Chinese retail sales suprise to the upside, rising nearly 11 percent in November, while industrial output also outperforms. 
    • Out with the old, in with the ... old. Paolo Gentiloni introduces a government largely made up of the Matteo Renzi's cabinet members, but a small centre-right party threatens to withdraw its support.
    • Battle of the media giants. Mediaset accuses Vivendi of trying to launch a hostile takeover, after the French rival says it could raise its holding in the Italian broadcaster to as much as 20 percent.
    • Donald Trump taps another Goldman guy, picking COO Gary Cohn to head the White House economic council and raising questions of succession at the Wall Street bank.



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  • Lots of China data came out earlier this morning.

    China's November steel output grows at fastest in over 2 years. November output climbs 5 percent from year before, but down over 3 percent from October. Production in first 11 months edges up.

    However, fiscal spending rose sharply in October. Expenditure surged 12.percent in November from a year earlier, reversing a 12.5 percent  drop in October, according to the Ministry of Finance.

    Housing sales also slowed due to tighter controls.

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  • Incoming Prime Minister Paolo Gentiloni has revealed his team of ministers, with a list of 13 cabinet members resembling much of his predecessor Matteo Renzi's administration. Economy Minister Pier Carlo Padoan was reconfirmed, as he grapples with Italy's looming banking crisis. 

    The decision to retain much of the line-up of Renzi's government drew criticism from opposition parties. Gentiloni also faced his first defection, losing the support of center-right ally the Liberal-Popular Alliance.


    The European Commission has signalled it is willing to work with the Italian government to address the problems in the country's banking sector. This, after an Italian Treasury source said it is considering several different options to rescue ailing lender Monte dei Paschi di Siena. 

    Without directly referencing Italy's third-largest bank, Commissioner Valdis Dombrovskis said the Commission is "ready to discuss different solutions within our legal framework."

    Shares in BMPS rose yesterday on the signs of support.

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  • Donald Trump has picked Goldman Sachs' President and COO Gary Cohn to head the White House National Economic Council. 

    Cohn (pictured below) will be the third Goldman veteran to join Trump's administration - including Treasury secretary choice Steven Mnuchin and senior advisor Steve Bannon. In a statement, Cohn called the position "a great honour.

    Goldman CEO Lloyd Blankfein said that the firm "will miss" him but that "the American people and president-elect are fortunate that he has chosen to serve his country."


    Meanwhile, Donald Trump has taken aim at Lockheed Martin -- tweeting that the cost of the F-35 program is "out of control" and vowing that billions of dollars will be saved on military spending.

    The president-elect's tweet sent Lockheed shares down as much as 4 percent - wiping $4 billion off the company's market value - before the stock recovered some of those losses to end the day about 2 percent lower.

    Here's the 7-day performance chart for the company.

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  • Speaking to CNBC, Mark Mobius was positive on Trump's approach to the presidency, saying he should be viewed as a dealmaker.

    by luke.graham

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  • U.K. Chancellor Philip Hammond has backed a longer period to manage Brexit, arguing that an adjustment phase with the European Union would help reduce the risk of financial disruption. 

    It's the first time that Hammond has suggested that Britain may need until beyond 2019 to break away from Brussels.  

    As it stands, the U.K. is set to kick-off its 2 year period of Brexit negotiations at the end of March, while the European Commission is angling for a shorter transition. 

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  • CNBC has the latest results from its survey of Global CFO Council. 

    The world's leading CFOs are keen for President-elect Trump to reform corporate tax.

    Chief financial officers at multinationals around the world do not see their businesses impacted by Trump's controversial policy proposals, such as the repeal of Obamacare, and are in fact positive about the president-elect's economic approach.

    For more on this story, click here.


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  • Staffing levels in the U.K. are expected to increase in 8 out of 9 sectors in the first quarter of next year, according to Manpower's latest employment outlook survey. 

    The most bullish hiring is projected to take place in utilities followed by construction. Transport and communications lag behind, with the net employment index seen down 2 percent.

    Mark Cahill, U.K. Managing Director at Manpower, talks to CNBC about the findings.

    We see it as very optimistic. This is the highest level we’ve seen in Q1 for three years. So what we’ve seen, I think, is all that uncertainty around the Brexit, before the Brexit vote, after the Brexit vote, it’s still there, but people are saying “let’s get on with it, guys. We’ve got a lot of work to do, we need people in our business.

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  • Here's what CNBC's CFO Council thinks of Donald Trump's presidency:

    • Members of the CFO Council appear to think a Trump Presidency will be positive for economic growth. The United States is the only country where CFOs on average see economic performance improving in the coming months.
    • When it comes to policy priorities, the majority of CFOs surveyed want President Trump to concentrate first and foremost on reforming corporate tax law. Interestingly, CFOs of Asian companies are keener to see the U.S. withdraw from the TPP than their American or European counterparts. 
    • CFOs of U.S. firms believe Donald Trump's plan to reform corporate tax is likely to be the policy which brings the greatest benefit to businesses. However, his proposal to build a wall on the US-Mexican border is a policy which CFOs think is likely to hurt American corporations. 
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  • Here are some more findings from the survey of CNBC's CFO Council.

    Consumer demand and cyber attacks are now the biggest risk factors CFO's see affecting their company.


    Similar to our trader poll above, the CFO Council expects two Fed rate hikes next year.

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  • Russian energy minister Novak says Russia's oil output cut will reach 300,000 barrels per day by May and stay at that level until the end of June.
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  • IMF President Christine Lagarde has vowed to fight "allegation by allegation" in her trial for negligence over a payment made by the French state to businessman Bernard Tapie in 2008. 

    Lagarde, then France's Finance Minister, is accused of misusing public funds for approving a rare private arbitration which cost French taxpayers more than 400 million euros. 

    If convicted, the IMF President could face up to a year in jail and a fine of 15 thousand euros. 

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  • Unicredit says it will launch a 13 billion euro share issue. It also plans to shed 17.7 billion euros of bad loans by securitization.
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  • The number of global M&A deals is set to fall for the first time since 2009. Lucinda Guthrie, Deputy Global Editor at Dealreporter, comments on the trend.

    This year, the value of deals is not quite at 2015 levels, but you have to remember that was quite a bumper year, but the volume of deals has dropped.

    What we’ve been hearing is that boards have been a bit uncertain due to the U.S. election, also Brexit, the uncertainty around Europe. There’s been a lot of macro-economic factors that have stifled deal-making a little bit.

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  • German November wholesale prices rose 0.1 percent month-on-month, and 0.8 percent year-on-year, compared to October's figures of 0.4 and 0.5 respectively.

    Also, November's final CPI figure came in as 0.1 percent month-on-month and 0.8 year-on-year, matching preliminary figures).
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  • These are your top headlines this morning:

    • Unexpected strength in the world's second largest economy. Chinese retail sales surprise to the upside, rising nearly 11 percent in November, while industrial output also outperforms.
    • Out with the old, in with the ... old. Paolo Gentiloni introduces a government largely made up of the Matteo Renzi's cabinet members, but a small centre-right party threatens to withdraw its support.
    • Unicredit launches a share issue of 13 billion euros as Italy's largest lender looks to strengthen its balance sheet amid wider concerns about capital levels in the Italian financial sector.
    • Battle of the media giants. Mediaset accuses Vivendi of trying to launch a hostile takeover, after the French rival says it could raise its holding in the Italian broadcaster to as much as 20 percent.
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  • The Trump-inspired market rally has seen U.S. indexes soar, but how is it affecting bonds and the dollar?

    The dollar-index has climbed in value since November. Here's a look at the 3-month performance of the index.


    Meanwhile, the U.S. yield curve is getting steeper. Yield on 10-year treasuries hit 2.5 percent yesterday before climbing down.

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  • David Bloom, Global Head Foreign Exchange Strategy at HSBC, comments on why bond yields and the dollar index are rising.

    The world believes all of a sudden in Trump-flation and there’s nothing to stop them. There’s a religious belief in it. It’s funny; you can’t get anyone on your show anymore to be critical of Trump, whereas before the election you couldn’t get anyone to say a kind word about him! So the market’s flipped.

    We’ve got the belief in Trump-flation and for the moment there’s nothing that’s going to shake that belief and that pushes yields in the shorter term to the 2.5 percent mark and it pushes the dollar up.

    According to Bloom, eventually there will be a turn, but no one's going to step in front of the Trump train just to be crushed any time soon.

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  • AB InBev is to sell SABMiller's former central and Eastern European businesses to Asahi.

    Asahi will buy the European beer brands for $7.8 billion. The assets are in Czech Republic, Poland, Hungary, Slovakia, Romania and includes brand names such as Kozel, Tyskie and Pilsner Urquell.
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  • Google has signed a deal with Cuba's state telecom provider. The deal should allow more Cuban people access to the internet.

    Watch the video below for more information.
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  • Alexandra Bouriko, CFO, Rusal, says the Russian economy’s period of decline is over.

    The Russian economy has contracted the second year in a row. However, the speed of that contraction reduced significantly in comparison with the previous year. We see only 0.7 percent decline in 2016 in the 9-month period, in comparison with 3.7 percent in the previous year.

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  • Commerzbank has received a decision from the ECB concerning its capital requirements. The bank says its Tier 1 requirement is 8.5 percent for 2017, lower than 2016's 10.25 percent (and in general fairly low compared to other banks).
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  • European markets are open, with the Stoxx 600 moving to the downside.

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  • A handful of sectors in the Stoxx 600 are making small gains this morning. Meanwhile, banks, basic resources and oil & gas pull the market down.

    Click or tap on the arrows to switch between charts.

     
     

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  • Here's how the individual European bourses are shaping up this morning after the opening bell.

     
     

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  • These are some of the stocks to watch this morning.

    Unicredit has announced plans to launch a share issue worth 13 billion euros to strengthen its balance sheet.

    Italy’s Mediaset accuses Vivendi of trying to launch a hostile takeover, after the French rival says it could raise its holding in the Italian broadcaster to as much as 20 percent.

    Finally, Commerzbank says its Tier 1 capital ratio requirement is just 8.5 percent for 2017, lower than the 10.25 percent required in 2016.

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  • AB InBev has agreed to sell its Eastern European beer operations to Japanese brewer Asahi. 

    The 7.3 billion euro sale is part of a commitment made to Europe's regulators in order for AB InBev to get its $100 billion takeover of rival SABMiller over the line. 

    This is the biggest acquisition for Asahi as part of its attempt to expand in Europe. 

    Shares are up slightly on the news. Here's a look at the share price's 12 month performance.

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  • These are the top headlines following the market open.

    • Making money in media. Shares in Italian broadcaster Mediaset rally more than 20 percent after rival Vivendi reveals it's building its stake, prompting speculation of a hostile takeover.
    • Cash call bounceback! Unicredit shares stage a staggering turnaround into positive territory after the Italian lender launches a share issue of 13 billion euros to strengthen its balance sheet.
    • Asahi gets thirsty, buying AB InBev's Eastern European beer brands for more than 7 billion, helping the Belgian beer behemoth inch closer to approval for its proposed takeover of SABMiller.
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  • After a weak 2015, this year's sharp rise in defence spending to $1.57 trillion dollars will “kick-off a decade of growth”, according to a new report from IHS Markit.

    Paul Burton, director of defense industry and budgets at IHS, discusses the findings, but denies we are seeing the start of an arms race.

    The phrase arms race is a headline grabber. What we’re seeing is a gradual build-up of procurement dollars in a number of countries. In Asia Pacific, for example, procurements budgets are increasing quite notably, in keeping with their overall GDP expansion.

    Certainly, we’re seeing an increase in purchases of more sophisticated military material, but whether or not that constitutes a tit-for-tat arms race as per the Cold War era, is yet proven.

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  • Apple has held talks to invest up to $1 billion in Softbank's $100 billion investment fund, according to multiple reports. The status of the talks are currently unclear. 

    They come after President-elect Donald Trump hosted Softbank's Masayoshi Son at Trump Tower, announcing his plan to invest up to $50 billion of the fund in the United States.
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  • Mixed performance from U.S. markets yesterday.

    The Nasdaq and S&P 500 fell, pulling back from the big gains made at the end of last week.

    Meanwhile, the Dow continued to push higher.

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  • Asian markets finished broadly flat, hit by the weaker theme from U.S. markets ahead of the Fed meeting.

    The Nikkei, however, broke ranks and rose by half a percent.

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  • Having started the year with oil at 30 dollars a barrel, Brent prices have rebounded almost 50 percent, boosted by OPEC's first output cut since 2008. And if the partners stick to their pledges, the oil market should move into deficit in the first half of 2017.

    Neil Atkinson, head of the oil industry and markets division at the IEA, discusses the IEA’s last monthly report of 2016 and says we should see oil rebalance if OPEC members stick to the recent agreements.

    OPEC has come out with an agreement and that’s been followed up with an agreement from non-OPEC producers and we got some fairly clear numbers. We’re not forecasting what they’ll produce as such, all we’re saying is if they do produce at the targets they’ve set out and all the other factors in the supply demand balance remain the same, then the oil market should move from the current surplus into deficit at some point during the first half of 2017, perhaps fairly early on.

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  • Shari Redstone has walked away from an attempt to merge Viacom and CBS, two companies that have been split for over a decade. 

    The Redstone family's National Amusements controls over 80 percent of voting rights in both firms -- but stated that now was not the right time for a tie-up. According to sources for the Wall Street Journal one of the reasons for the reversal in plans was Redstone's faith in the strategy of the new Viacom CEO Bob Bakish.
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  • Fox is nearing a cash bid for Sky that will value the British broadcaster at £10.75 a share according to Reuters. The two firms will use a scheme of agreement for the deal, meaning Fox will only need 75 percent of Sky shareholders to approve in comparison to 90 percent for a straight take over.

    Rupert Murdoch's Fox already owns around 40 percent of Sky and is reportedly set to keep Jeremy Darroch as CEO.

    Shares in Sky are up more than 1 percent today. Here's a look at the firm's 3-month performance.

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  • Billionaire Bill Gates has launched a $1 billion fund, called the Breakthrough Energy Venture Fund, focused on combating climate change. 

    Don't miss an exclusive interview with Mr Gates today on CNBC at 14:00 CET. 

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  • Unicredit will launch a share issue for 13 billion euros, in what will be the country's largest share issue. The bank's CEO said the issue would help to boost the bank's balance sheet and longer-term profitability. 

    Unicredit also announced plans to cut 14,000 jobs from the group, or about 11 percent of total staff.

    Currently, Unicredit shares are up 7 percent after the news. Here's a look at the shares performance so far this week.

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  • Inflation data has come through for Spain and Sweden.

    Spain's November CPI inflation was 0.7 percent year-on-year, matching forecasts and October's reading.

    Sweden's number for November was 0.0 percent on the month and 1.4 percent on the year.


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  • U.K.'s CPI growth for November was 0.2 percent month-on-month and 1.2 percent year-on-year.

    This beat forecasts of 1.1 percent and was the highest year-on-year rate since October 2014, according to the ONS.

    Core CPI (excluding energy, food, alcohol and tobacco) was 1.4 percent year-on-year, again beating forecasts of 1.3 percent.

    CPI was pushed up thanks to clothing, culture and fuel prices.
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  • Fitch affirmed it's stance that U.K. banks continue to show resilience -- but warned of broader economic concerns as U.K. GDP growth forecasts are weaker than before the EU referendum.  

    The ratings agency says uncertainty about the path of Brexit and progress of negotiations will weigh on the U.K. on the economy -- creating a more challenging environment.  

    Fitch added that cost control will be a high priority until at least 2018, as U.K. banks seek to cope with economic pressures, structural changes, and materially weaker GDP growth. 

    Shares in the big five U.K. banks are up today.

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  • Here's more coverage on the U.K. inflation figures.


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  • Donald Trump has picked Goldman Sachs' President and COO Gary Cohn to head the White House National Economic Council. Cohn will be the third Goldman veteran to join Trump's administration - including Treasury secretary choice Steven Mnuchin and senior advisor Steve Bannon. 

    In a statement, Cohn called the position "a great honour." Goldman CEO Lloyd Blankfein said that the firm "will miss" him but that "the American people and president-elect are fortunate that he has chosen to serve his country."

    Trump has also said he will name his secretary of state today, with NBC News confirming that the president-elect has picked ExxonMobile CEO Rex Tillerson.
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