World Markets Live - December 14 - CNBC Live Events
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CNBC Live Events

World Markets Live - December 14

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

  • Yahoo says it believes hackers stole data from more than 1 billion user accounts in August 2013, in what is thought to be the largest data breach at an email provider.
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  • These are the morning's top headlines:

    • The Dow comes in striking distance of 20,000 as U.S. stocks rally into the Fed meeting, with Janet Yellen and co expected to raise rates for only the second time since the financial crisis.
    • Italy's new prime minister Paolo Gentiloni wins his first vote of confidence in the lower house, vowing to save the banks, as Moody's downgrades the sector, citing weak capital levels.
    • Healthy discussions? Swiss biotech Actelion says it is in "strategic talks" with an undisclosed suitor, as Johnson & Johnson drops out and a report suggests Sanofi could be the winning bidder.
    • Switching gear! Billionaire Carl Icahn praises a change in leadership at Hertz, but shares fall more than four percent in afterhours as GE-veteran Kathryn Marinello is made CEO.
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  • The dollar is holding firm, while 10-year treasury yields passed 2-year highs this week in anticipation of the Fed, which is widely expected to raise rates for the second time since the financial crisis. But what's less widely known is how fast the FOMC will tighten after that. 

    Economists at Goldman Sachs are most confident on the Trump reflation scenario, predicting three rate hikes in 2017, while JPMorgan, Morgan Stanley and Citigroup are projecting just two. Fed watchers will today be listening out for clues from Chair Janet Yellen's press conference on the future path of policy. 

    Here's the 7-day performance of the dollar index.

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  • The overall trend in U.S. equity markets has been to broadly drift upwards since the recession in the early 1980's, while interest rates have been grinding down to zero. The question is whether this month's rate hike could formally mark the end of the 35-year bull market for bonds.

    Let's take a look at how U.S. markets closed.

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  • Jon Jonsson, Fixed Income Portfolio Manager at Neuberger Berman, says  what to expect from the Fed today.

    I think the Fed’s approach is going to be cautious. Yellen’s going to be cautious, she has been cautious. I think the key here to the outlook is they would not want to bring expectations much higher, because the dollar is very sensitive to the path of the Fed funds.
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  • A Fed rate hike today is a near certainty, followed by two rate hikes in 2017. That's according to the findings from CNBC's exclusive Fed survey.

    Steve Liesman guides us through the details.  

    by luke.graham

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  • Incoming Prime Minister Paolo Gentiloni has won an initial vote of confidence in the lower house of Italy's Parliament. This after he was asked to form a new government in the wake of former Prime Minister Matteo Renzi's resignation following his Constitutional Referendum loss. 

    In Gentolini's maiden speech to Parliament, he outlined his plan for office, vowing that the government was "ready to intervene in order to guarantee the stability of banks.

    To assume the office of Prime Minister, Gentiloni needs to win another vote of confidence in Italy's upper house, which he faces today.

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  • Moody's has altered its outlook for the Italian banking sector to 'Negative' from 'Stable, amid the looming crisis over capital needs and a gloomy outlook for Italian economic growth. 

    The ratings agency said that the country's banks need to "recognise additional impairments and losses when selling problem loans", adding that any failure to rescue Monte dei Paschi di Siena could further undermine confidence in the sector. 

    This chart compares the stock market performance of shares in Italian banks Unicredit, Intesa Sanpaolo and BMPS so far this year.

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  • According to the highly-watched Tankan survey, Japanese big manufacturers have gained confidence for the first time in a year. Improvements in the global economy and a weaker yen are seen to have boosted morale, with big corporates planning to increase capital spending going into next year.

    Here's how the Asian markets acted ahead of the Fed meeting. 

    A lot of caution in Asia, with the Nikkei flat. 

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  • Japanese Government bonds have rallied after the BOJ increased its bond purchases ahead of the Fed meeting. 

    Here's how the yield on 10-year Japanese debt has moved over the past 30 days.

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  • Mohamed El-Erian, Chief Economic Advisor at Allianz, says what to watch for during the Federal Reserve meeting today.

    Everybody’s predicting (a rate rise of) 25 basis points. It will be a shocker if they didn’t do that. I think the key issue is what do they signal thereafter and in particular how much of what has already occurred in markets they internalize.



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  • El-Erian also discussed the Fed dot plot and what it tells us about future Fed hikes.

    I think what we’re going to see for the first time is the blue dots are not going to migrate down, the blue dots are going to be relatively stable. It is market expectations that are migrating up and that means the Fed is signalling at least two hikes next year.

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  • The heads of America's biggest technology companies are scheduled to meet President-elect Donald Trump later today, in an effort to find common ground after an exceptionally heated and contentious election. 

    The meeting is expected to focus on job creation and the use of technology to improve government efficiency. Executives due to attend the event include Apple CEO Tim Cook and Alphabet CEO Larry Page, along with the venture capitalist and Trump supporter Peter Thiel. 
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  • A tech leader who has already had the chance to speak one-on-one with the president-elect is Bill Gates. 

    In an exclusive interview with CNBC, the Microsoft co-founder recalled his recent conversation with Donald Trump.
     
    by luke.graham

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  • Bill Gates may have struck a note of cautious optimism on the incoming Trump administration, however the president elect's latest cabinet pick is already stoking divisions within his own party. NBC's Kristen Welker has the latest 

    by luke.graham
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  • These are the morning's top headlines:

    • The Dow comes in striking distance of 20,000 as U.S. stocks rally into the Fed meeting, with Janet Yellen and co expected to raise rates for only the second time since the financial crisis.
    • Allianz Chief Economic Advisor Mohamed El-Erian tell us Janet Yellen's Fed won't be swayed by President-elect Trump.
    • Italy's new prime minister Paolo Gentiloni wins his first vote of confidence in the lower house, vowing to save the banks, as Moody's downgrades the sector, citing weak capital levels.
    • Healthy discussions? Swiss biotech Actelion says it is in "strategic talks" with an undisclosed suitor, as Johnson & Johnson drops out and a report suggests Sanofi could be the winning bidder.
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  • Finland saw 0.7 percent year-on-year CPI inflation growth in November, the country's statistics office has revealed.
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  • Headlines profits before tax at Dixons Carphone are up 19 percent, the company reports in its half year results.

    Revenue was up 4 percent in the first half. 

    The company added it had seen any impact on consumer demand as a result of Brexit.

    This is the 3-month share price performance of the company.

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  • Monte dei Paschi di Siena has said it received official communication from the European Cental Bank rejecting its request for more time to raise capital. 

    In a statement, the ailing Italian lender confirmed the ECB said an extension to the funding deadline could cause a further deterioration in the bank's liquidity position and capital ratios.

    Year to date, shares in the bank are down over 80 percent.

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  • The dollar is holding firm, while 10-year treasury yields passed 2-year highs this week in anticipation of the Fed, which is widely expected to raise rates for the second time since the financial crisis. 

    But what's less widely known is how fast the FOMC will tighten after that. 

    Here's a look at how yields have changed on 10-year debt over the past two years.

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  • Dennis Gartman , Founder & Editor of The Gartman Letter, comments on the strong consensus view that the Federal Reserve will hike interest rates today.

     We have never seen this sort of unanimity. It’s beyond 100 percent, I believe it’s 120 percent likelihood that the Fed shall raise rates by 25 basis points! There are actually one or two or three Fed watchers who think it might even go 50 basis points, but the odds of that occurring are absolutely negligible at best. 

    We will get a Fed increase in the overnight Fed funds rate and the only thing that we shall be paying attention to today in the post-meeting communique and Janet Yellen’s post-meeting press conference are indications will there be two or perhaps three further rate increases.

    Gartman predicts there will be three or perhaps four hikes in 2017.
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  • France has released its latest inflation data.

    Harmonised CPI growth in November was 0.7 percent on the year, versus 0.5 percent in October.

    This was a 2.5 year high.
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  • Vivendi has turned up the pressure on Mediaset, revealing that it now owns 12.3 percent of the Italian broadcaster and has said it could raise that stake to 20 percent. 

    The move has antagonised already tense relations between the French and Italian media groups, with Fininvest - Mediaset's biggest shareholder - calling the purchase a hostile takeover attempt. 

    Fininvest also bought over 27 million shares, and said it would raise its stake to nearly 40 percent of the group's voting capital.

    Mediaset shares jumped as much as 36 percent on Tuesday, their biggest one-day gain on record. This chart shows the 3 month performance of Mediaset shares.

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  • European markets are open, moving to the downside in opening trade.

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  • These are the biggest winners and losers in European opening trade.

    Click or tap on the arrows to switch charts.
     
     

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  • Lots of red on European markets this morning. Here's a look at the individual bourses.

    Click or tap on the arrows to change charts.

     
     

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  • Sanofi is reportedly in deal talks with Actelion. According to the Wall Street Journal, a deal could value Actelion at as much as 30 billion dollars. 

    This after Johnson & Johnson bowed out of the bidding, as it was reportedly not willing to meet the necessary price tag.

    Shares in Sanofi are down 2 percent this morning. Here's a look at the French firm's 12 month performance.

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  • CNBC's Karen Tso and Geoff Cutmore walk you through today's Federal Reserve meeting, letting you know the important facts and what to watch out for.

    by luke.graham

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  • Swiss producer/import prices rose 0.1 percent month-on-month in November, versus 0.1 month in October.

    Year on year, prices contracted 0.6 percent, versus a fall of 0.2 percent the month before.
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  • These are the top news headlines half an hour after the opening bell.

    • Allianz Chief Economic Advisor Mohamed El-Erian tell us Janet Yellen's Fed won't be swayed by President-elect Trump.
    • Vivendi turns up the pressure on Mediaset, sending the shares to the top of the Stoxx 600. But a media battle could be brewing as Fininvest - Mediaset's biggest shareholder - warns against a hostile takeover attempt.
    • Healthy discussions? Actelion shares slide after the Swiss biotech company says it's in "strategic talks" with an undisclosed suitor, as Johnson & Johnson drops out and a report suggests Sanofi could be the winning bidder.
    • Investors in Europe shrug off the records reached stateside, with the Dow nearing the 20-thousand mark ahead of the Fed, as Janet Yellen and Co  look set to raise rates for the second time since the financial crisis.
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  • Shares in Actelion are down more than 6 percent at the moment on news the company is in talks with an undisclosed suitor.

    Johnson & Johnson dropped its takeover bid, while the WSJ reports Sanofi is in talks with the Swiss biotech.

    Here's a look at Actelion's share price performance over the past 6 months.

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  • Few sectors are managing to eke out gains on the Stoxx 600. On the other end, basic resources and healthcare are leading the market lower.

    Click or tap on the arrows to switch  between charts.

     
     

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  • Ian Bremmer, President of Eurasia Group, comments on U.S.-Russia relations and Donald Trump's approach to foreign policy.

    There's something unusual about Trump's response on Russia. It goes farther than it needs to. Clearly, Obama’s worst foreign policy was Russia. He told the Russians you leave Ukraine or else. Nothing happens. He says Assad must go, the Russians say sorry not going to happen. Sanctions aren’t very effective, the Europeans don’t really like him, the Chinese aren’t paying attention. 

    So I get Trump wanting to score some points by saying “you see this fail, I’ll do something else,” but ignoring the hard intelligence, not even wanting to see evidence on Russia hacking, saying that’s it’s wrong.

    There’s something going on.

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  • Parisians have said 'non' to naming a new road in the 13th arrondissement 'Rue Steve Jobs' after the late Apple CEO. 

    The Mayor of the district, who proposed the name, faced opposition from the local Communist and Green Parties. The world's largest start-up campus will soon open in the district.
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  • Jordan Rochester, FX strategist at Nomura, says it is unlikely the Federal Reserve dot plot will change much today.

    I think there’s some risk in the fact that the dots on the distribution, so the core members unrevised, and some of the regional Fed governors might even raise their expectations for next year, and that could be the signal we see tonight.

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  • For reference, here's a look at the Fed's dot plot and how it  changed from June to September.

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  • Italy's November CPI inflation is confirmed at minus 0.1 percent month on month and at 0.1 percent year on year.

    Yields on 10-year government bonds are down 7 basis points, falling to one-month lows, partly thanks to the inflation news.

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  • The latest U.K. unemployment figures have been released.

    The November claimant count rose 2,400 month on month to 809,000. This was less than Reuters poll expectations of 5,500.

    The U.K. unemployment rate is now 4.8 percent.

    Despite the dip in employment, weekly earnings rose 2.5 percent year-on-year in the 3 months to October, greater than expectations of 2.3 percent.

    In October, earnings rose 2.8 percent year-on-year, the highest single month rise since January.
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  • Struggling to recall all of the people chosen for President-elect Donald Trump's cabinet?

    CNBC has you covered. Watch the video below.


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  • IPO activity declined across the board this year, but the share of cross-broder deals rose -- this according to a new report from Baker McKenzie. 

    Their Cross-Border IPO Index shows that cross-border deals accounted for 35 of new listings. The New York Stock Exchange was the only major exchange to see cross-border IPO growth in both volume and value, while - notably - the London Stock Exchange saw the biggest declines.

    Nick O'Donnell, partner at Baker McKenzie, discusses the report and explains why London lagged behind the rest.

    Brexit was a big part of it. We’ve seen a number of event through 2016 that have hit London particularly hard. We had the market declines back in January. The FTSE 100 taken down pretty strongly, taken down 10 percent in less than 3 weeks, a lot of uncertainty around that.

    Then of course, June 23rd, Brexit, the polls moving ahead of that creating uncertainty and the unexpected result.

    He added that London was hit unusually hard by the uncertainty created following the election of Trump as U.S. president.

    These are some of the key data points from the report.

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  • Google's self-driving car program will become an independent company called Waymo.
    It will sit under the Alphabet umbrella and signals a drive by the company to monetize the extensive research conducted within the project.

    Google has recently expanded its 7 year old scheme amid stiffer competition from rivals.

    Here's a look at Alphabet's share price movement over the past 12 months.

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  • Glass half empty or half full? That’s the question for Majestic Wine, Britain's biggest wine retailer. 

    Majestic shares lost more than a quarter of their value in September after the company reported a pre-tax loss of more than £4.4 million -- saying a weak commercial performance and a failed U.S. marketing campaign are to blame.

    Rowan Gormley, CEO of Majestic Wine, spoke to CNBC about how the company is navigating this period.

    There’s more uncertainty in the world today than we’ve seen for a very long time and the only way we can adapt to it is actually sticking to the plan and the plan is to be obsessive about customer loyalty and continue to provide the best service for people wanting a wine specialist.

    Markets come and go, trends come and go, fashions come and go, but if you keep looking after your customers through thick and thin, they will continue to look after you.

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  • Jordan Rochester from Nomura has shared his views on what to expect from the Fed meeting today.

    Market economists are looking for Janet Yellen to strike a balanced and neutral tone today. For the first time in a while the forward guidance provided by the dot plot is expected to not see the dot plot forecasts revised lower. 

    If the Fed takes a more dovish tone than this, say revising the dots down, your inbox tomorrow may be full of emails titled “Fed falling behind the curve” as the outlook for next year is uncertain, but most would agree that the risks lie to the upside in the inflation outlook. 

    Market pricing for a Fed deemed to be behind the curve, if it led to a steeper curve, should be USD supportive so the USD would be a buy on dip, especially against JPY and EUR if risk sentiment is supported by a dovish 

    How the dollar moves later today will be important. For now, here's a look at where the currency is priced against others.

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