World Markets Live - December 21 - CNBC Live Events
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CNBC Live Events

World Markets Live - December 21

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

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  • Good morning everyone. It's mid-week already and Christmas is fast approaching. And markets seem to be on a high as well. Dow is marching towards 20,000 and European stocks ended at 11-month high on Tuesday. Will the rally continue? Let's see what the morning calls from IG say about Europe today:


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  • Here are your top headlines at this hour:

    • Within a whisker of 20 thousand. The Dow is driven towards a key level, helped by banks and dollar strength as the greenback hits highs against the euro not seen since 2003. 
    • ISIS claims responsibility for the deadly Berlin attack. Authorities continue the manhunt for the truck driver after releasing an initial suspect due to lack of evidence. 
    • The ECB's chief economist Peter Praet says bank troubles in Europe are limited to a select few. But a group of French lenders turns on the central bank, saying they will sue the ECB over capital requirements. 
    • Volkswagen adds another 1 billion dollars to its U.S. settlement bill after it reaches an agreement to buyback or fix 80 thousand diesel vehicles. 
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  • Coca Cola agrees to $3.15 billion deal for AB INBEV's 54.5 percent equity stake in Coca-Cola beverages Africa. The beverage giant has agreed to acquire AB INBEV's interest in bottling operations in Zambia, Zimbabwe, Botswana, Swaziland, Lesotho, El Salvador and Honduras for undisclosed amount. That's according to Reuters.
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  • German police are still on the hunt for the driver of the truck which ploughed into a Christmas market in Berlin on Monday night, killing 12 people. Authorities have freed an initial suspect they were holding due to lack of evidence. Germany's interior minister has said the perpetrator may still be at large and investigators are following several leads.


    Islamic State has claimed responsibility for the attack, but provided no evidence. Its AMAQ news agency said the perpetrator was a "soldier" of the militant group and had carried out the attack in response to "calls to target nationals of the coalition countries".  



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  • Charles Hecker, Senior Partner, Control Risks joins us live to discuss the risks in Germany:

    If you look at what happened in Paris and Belgium, those were not refugees. Those were people who grew up in the neighborhood and grew up in those cities. We didn't think in the past couple of years that this flow of refugees could harbor terrorism. 


    By and large the absorption of refugees into the German economy, the social security, into schools is going pretty well. It is kind of like the Scandinavian model. 
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  • At least twenty-nine people have died and more than 80 were injured by an explosion in a fireworks market in Mexico. The blast struck about 20 miles north of Mexico city and local television showed a flurry of fireworks exploding. Similar fires engulfed the same market in 2005 and 2006 that levelled hundreds of stalls.

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  • Turkey has detained six people over the assassination of Russia's ambassador. Those arrested reportedly include the gunman's mother, father, sister, his roommate and three other relatives. Russia and Turkey have said that the killing won't alter recently improved relations. 

    Charles Hecker, Senior Partner, Control Risks tells us how this could impact Turkey-Russia relations:

    Turkey is in a very interesting position where they can play the west and east against each other. I don't think Turkey wants too much Russia in their backyard but they want just enough. 
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  • In case you are just joining us, here are your headlines with CNBC's Steve Sedgwick

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  • French banks are suing the ECB in a bid to avoid holding capital against certain deposits, according to reports. 

    Lawsuits have been brought forward by BNP, SocGen, Credit Agricole and three other banks over the past month. It's the first major case by top euro zone lenders, pointing to tensions between the banks and the monetary authority. The case relates to capital set aside against special tax-free savings accounts known as CDCs, which the banks will argue deserve exemption.  

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  • Monte dei Paschi di Siena has raised 500 million euros in a debt-to-equity offer, according to Reuters. The embattled lender is looking to raise 5 billion euros in order to avoid government assistance.  

    As part of the rescue plan, it must raise the finance by the end of the month, as well as sell 28 billion euros of bad loans. But demand has been dampened by the political turmoil sparked by Matteo Renzi's referendum loss and resignation. 

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  • Missed the headlines this morning? Here's your daily dose of World Markets Live TL;DR


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  • President Obama has announced what he describes as a permanent ban on offshore oil and gas drilling in parts of the Arctic and Atlantic seaboard by invoking an obscure provision of a 1953 law. 

    The Outer Continental Shelf Lands Act allows a President to remove any unleased lands off the coast of the U.S. from future lease sales. Notably, there is no clause in the law that allows for the President's successor to repeal the move. The declaration is likely to be challenged by the Trump administration and the Republican-controlled Congress in court. 

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  • The Trump transition team is on the defensive after a new controversy surfaced involving the President-elect's sons. Reports have raised questions about whether they were planning to swap big money charity donations for access to their father. NBC's Hallie Jackson has the latest details.

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  • Demand for Australian wines in China has skyrocketed in recent years. In the 12 months to November, imports increased 51 percent, leading China to overtake the U.S. as the world's biggest buyer of Australian wine. 

    As the holidays approach, CNBC's Karen Tso spoke with the founder of McGuigan Wines, Neil McGuigan, winner of this year's International Winemaker of the Year, and asked him about the state of the Chinese wine market. 

    The Chinese consumer wants anything that is high quality out of the western world. And Bordeaux has done a fantastic job and the Chinese have been lapping up. But Australia has been producing some great wine too. We have been selling a lot of premiums into that market. 

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  • Here are your top headlines at this hour:

    • Within a whisker of 20 thousand. The Dow is driven towards a key level, helped by banks and dollar strength as the greenback hits highs against the euro not seen since 2003. 
    • ISIS claims responsibility for the deadly Berlin attack. Authorities continue the manhunt for the truck driver after releasing an initial suspect due to lack of evidence. 
    • The ECB's chief economist Peter Praet says bank troubles in Europe are limited to a select few. But a group of French lenders turns on the central bank, saying they will sue the ECB over capital requirements. 
    • Volkswagen adds another 1 billion dollars to its U.S. settlement bill after it reaches an agreement to buyback or fix 80 thousand diesel vehicles. 
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  • The U.S. dollar is trading near a 14-year high as global yield spreads shift inexorably in its favour. The strong dollar continues to pressure commodities including precious metals, especially gold. 

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  • Islamic State has claimed responsibility for the attack, but provided no evidence. Its AMAQ news agency said the person responsible was a "soldier" of the militant group and had carried out the attack in response to "calls to target nationals of the coalition countries". NBC's Hans Nichols reports from Berlin

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  • A thick smog has fallen over Beijing, forcing authorities to implement emergency measures. Over 400 million people have been affected by a red alert, the highest level in China's pollution warning system. 

    According to Greenpeace Asia, almost 200 million people live in areas where air pollution levels are 10 times above the World Health Organisation's guidelines. 


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  • Our guest host Kokou Agbo-Bloua, Global Head of Flow Strategy and Solutions, Societe Generale talks about the impact on emerging markets:

    It will be an interesting year for emerging markets because you have two sides of the coin so to speak. On the one hand if you have the infrastructure spending with Donald Trump and the question is whether the strength of the dollar and the path of the interest rate hikes in the U.S. is going to jeopardize the positive dynamic of the western world vs the strong dollar and stronger interest rate, which historically has been bad for emerging markets.

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  • Markets in Europe are set to start trading in the red after German authorities admitted the country suffered a terrorist attack.

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  • Here are your top headlines at this hour:

    • Within a whisker of 20 thousand. The Dow is driven towards a key level, helped by banks and dollar strength as the greenback hits highs against the euro not seen since 2003. 
    • ISIS claims responsibility for the deadly Berlin attack. Authorities continue the manhunt for the truck driver after releasing an initial suspect due to lack of evidence. 
    • The ECB's chief economist Peter Praet says bank troubles in Europe are limited to a select few. But a group of French lenders turns on the central bank, saying they will sue the ECB over capital requirements. 
    • Actelion is seen opening up over 4 percent after Reuters reports Sanofi is 'making progress' on takeover talks with the Swiss drug giant. 

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  • BMPS says bank's liquidity expected to run out in 4 months instead of 11 months as previously forecast. That's according to Reuters. 

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  • Nike shares jumped 5 percent after the sportswear retailer posted second quarter profits which beat analyst estimates.

    However, Nike's stock pared some of those gains when the company's management said its future orders grew just 2 percent on a constant currency basis. On the back of its earnings, Nike confirmed it expects full-year revenue growth to be in the high-single-digit range.

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  • French producer prices rose 0.8 percent month-on-month in November according to the official statistics body INSEE.

    On a yearly comparison however the November figure fell 0.2 percent.

    The data covers the prices of goods leaving French factories for sale to French homes only.
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  • Volkswagen has added another 1 billion dollars to its U.S. settlement bill with a deal to fix or buy back another 80 thousand diesel vehicles. The settlement covers 3-litre Volkswagen, Porsche and Audi models sold in the U.S., and brings the German carmaker's total spend in America to around 17 and a half billion dollars. 

    The world's number 2 car-maker still faces the possibility of further pay-outs to resolve a Justice Department criminal investigation. 

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  • BMPS says the bank's liquidity is expected to run out in 4 months instead of 11 months as previously forecast, according to Reuters. 

    Caludia Pensotti from Class CNBC joins us from Milan to tell us more:
    That headline doesn't help as the clock is ticking to the last attempt to try and save BMPS from a bailout. In terms of a deadline, we have today that is 2PM, will be the last chance to convert debt to equity in this additional debt to equity swap that was approved by the market watchdog that is offered to retail investors. 

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  • European markets are now open for trading. The pan-European Stoxx Europe 600 is down 0.18 percent. 

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  • Major European stocks are trading lower this morning as sentiment in Europe remains dim after ISIS claimed responsibility for attacks in Berlin that killed 12 people and injured 50:

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  • Banca Monte dei Paschi di Siena has been operating since 1472. 

    Now this morning a flash from Reuters suggest it may only have 4 months of liquidity left.

    That not helping the besieged stock which is urgently trying to raise 5 billion euros by the end of December.



    Claudia in Milan says a bailout with the intervention of the government looking ever more likely as deadlines run out today for a debt for equity swap and tomorrow for a capital raising plan.

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  • Let's take a look at the best and the worst performing stocks this morning. Stocks in Mediaset are soaring this morning, up more than 8 percent as it sits on the top of the list of best performing stocks. Meanwhile, NEX Group is down more than 2 percent, topping the list of worst performing stocks:

     
     

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  • Takeover talks between Actelion and Sanofi are making progress, despite concerns the boss of the Swiss biotech firm may be against the idea of selling. 

    According to Reuters' sources familiar with the matter, Actelion has reached a point with the French drugmaker where it can't now call off negotiations without triggering an investor rebellion. 

    Shares in Actelion are up nearly 3 percent:

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  • AB InBev has agreed to sell its majority stake in Africa's largest Coke bottler to Coca Cola for $3.15 billion. The sale marks the final divestment following its purchase of rival SABMiller. The transaction is expected to close by the end of 2017

    Shares in AB InBev are down 0.5 percent:

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  • Banca Monte Dei Paschi di Siena will be rescued according to our current TV strategist.

    Richard Lewis, Head of Global Equities at Fidelity says the ownership of BMPS subordinated junior bonds are very heavily weighted to retail investors that are customers of the banks.

    He says letting BMPS fail would create a massive populist backlash that could extend all the way to the European Union and "it is just not going to happen".

    He says Banca Monte Dei Paschi di Siena will be rescued by the state and a form of language will put together that absolves the bank of breaking European Union rules.

    Richard Lewis, Head of Global Equities at Fidelity 

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  • Volkswagen has added another 1 billion dollars to its U.S. settlement bill with a deal to fix or buy back another 80 thousand diesel vehicles. The settlement covers 3-litre Volkswagen, Porsche and Audi models sold in the U.S., and brings the German carmaker's total spend in America to around $17.5 billion. 

    The world's number 2 car-maker still faces the possibility of further pay-outs to resolve a Justice Department criminal investigation. 

    Shares in VW are up nearly 1 percent this morning:
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  • Monte dei Paschi shares suspended after 5.7 percent drop, that's according to Reuters.

    Reuters reported this morning that Monte dei Paschi had previously suggested that its 10.6 billion euro ($11.5 billion) liquidity position could last for 11 months. 

    However, it said Wednesday that a liquidity crunch could happen in four months time.
    by Spriha Srivastava edited by david.reid 12/21/2016 8:19:08 AM
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  • Let's take a look at the best and the worst performing sectors this morning. Autos are leading the way, up 0.4 percent, while Real Estate is down 0.7 percent:

     
     

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  • BMPS stock has resumed trading and is now down around 9 percent.


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  • Here are your top headlines at this hour:

    • Santa fails to provide much cheer in Europe. But stateside the Dow comes within a whisker of 20 thousand, driven higher by financials. 
    • Banco Monte dei Paschi says its liquidity will dry out in 4 months instead of 11, as the Italian lender makes a last-ditch attempt to raise private capital and avoid a state bailout. 
    • Shares of Mediaset hit a 16 month high after Vivendi increases its stake yet again. But the Italian media group warns it will take all measures necessary to defend its assets. 
    • An injection of hope. Actelion shares bounce after Reuters reports Sanofi is 'making progress' on take-over talks with the Swiss drug giant. 
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  • Swedish Central Bank says further purchases of government bonds for SEK 30 billion, repo rate unchanged at -0.5 percent. Increase in repo rate are not expected to begin until beginning of 2018, the bank said.

    The central bank has also said it has decided to continue purchasing government bonds during first six months of 2017, both normal and real bonds, each corresponding to SEK 15 billion. That's according to Reuters. 

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  • A little over thirty minutes since the start of the European trading day and stocks look a bit better as they try and hold gains. CAC40 continues to trade lower as investors analyse the impact of attacks in Christmas market in Berlin that left 12 dead and 50 injured:

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  • Dan Jago, CEO, Berry Bros. & Rudd joins us live to discuss the trends in wine market as we near Christmas:

    Our biggest sale is Champagne. We have already sold 27,000 bottles of Champagne so far. We are about twice the normal compared to sales last month.


    If you are a collector, it is a brilliant thing to do. How many of those investments do you enjoy? Wine is a terrific way of putting money away and seeing what happens. 
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  • The European Union court has upheld a finding that a Spanish tax advantage for foreign shareholdings is illegal state aid. 

    And we think that's why there is a bit of sudden pressure on the wider Spanish market.

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  • Read in to this what you will.

    The Italian finance minister Pier Carlo Padoan says his government is committed to protecting retail bank investors in accordance with EU rules.

    He has gone on to say that the impact on bank retail investors will be "minimal or nil".

    Shares take another dive down in session, BMPS now off 12 percent.



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