World Markets Live - February 14 - CNBC Live Events
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CNBC Live Events

World Markets Live - February 14

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 here are your headlines:


    • National Security Adviser Michael Flynn resigns after apologizing to Vice President Mike Pence for misleading him on Russian relations, in a significant blow to Donald Trump's administration.
    • But stocks rally on hopes a Trump tax will be revealed soon, with financials leading all major U.S. markets to close at record levels for the fourteenth time since the election. 
    • A DOJ settlement eats into earnings at Credit Suisse as the bank mulls the future of its Swiss business IPO. 
    • Apple shares close at an all-time high, valuing the tech giant at over 700 billion dollars for the first time in 2 years as investors turn bullish on the next iPhone. 

    Comment ()
  • The European opening calls look like this: 

    FTSE 7,281 +3
    DAX 11,777 +3
    CAC 4891 +3
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  • Credit Suisse has revealed a fourth-quarter net loss to shareholders of 2.347 billion Swiss francs. 

    The bank says it will propose to shareholders a distribution of 0.70 francs per share.

    Credit Suisse claims full-year costs savings in 2016 came in at 1.9 billion Swiss francs.

    We'll hear from the CEO of Credit Suisse, Tidjane Thiam, at 06:50 a.m. London time.




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  • Live from Dubai we are talking with Axel Weber, chairman of UBS.

    He is telling Hadley that political uncertainty will be the dominate factor this year and a bumpy transition in the United States is not particularly surprising.

    On the Federal Reserve, he reinforces that the bank expects 2-3 rate rises this year but the Fed will exhibit caution.

    Axel Weber, UBS Chairman 

    Weber expects Russia to come back to the international table and some of the geopolitical atmosphere should improve.

    On the French elections, he doesn't think Marine Le Pen will win but he is concerned about the French electorate lurch to the right.

    Weber says "Grexit", Greece's mooted exit from Europe, will re-enter the stage as a topic for 2017.
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  • Steve highlighting another example of how to speak the language of a politician.
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  • U.S. stocks climbed to new record highs yesterday as investors remained bullish on President Donald Trump's economic agenda.

    The Dow Jones industrial average rose about 140 points, with Goldman Sachs contributing the most gains, to post its 22nd record close since Nov. 8. 

    The S&P 500 gained 0.5 percent, with financials rising more than 1 percent to lead advancers, to notch its 14th record close since the U.S. election. The Nasdaq composite advanced 0.5 percent as Apple shares closed at an all-time high.

    With a fairly light data calendar today, all eyes will be on Fed Chair Janet Yellen. She will be testifying in front of Congress for the first time since the inauguration. 

    Market participants will be interested to see if her economic outlook aligns with his.


    That bullishness not influencing the Tuesday session for Asian markets however.  Investors there already positioning themselves for Yellen it would seem.

    China's consumer inflation hit the highest level in almost 3 years in the month of January due to rising food and travel prices during the Lunar New Year holidays. China's producer inflation also came in above expectations, reaching an almost 6 years high.




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  • Michelin is hoping an upturn in mining sector demand will help to lift profits this year. This as the French tire maker posted a 4-and-a-half percent increase in operating profit for 2016.


    Henry says wherever there are mines in the world, he foresees business to improve. Henry says globally, he sees both business opportunities and the price of raw materials rising. 

    He says a global firm like Michelin can only attempt to be agile when different political strains affect different regions.

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  • Credit Suisse has posted a 2.3 billion Swiss franc loss in the fourth-quarter after the Swiss bank agreed to pay a settlement with the DOJ over its mortgage-backed securities. 

    Carolin spoke to CEO Tidjane Thiam about the results.

    by david.reid

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  • Credit Suisse is viewed by some analysts as a bank well positioned in Fixed Income. This made evident in the fourth quarter results.
     

    Carolin also telling us that the IPO of Credit Suisse's Swiss business is still set to go ahead.

    On cost-cutting, an additional 6,500 jobs are being cut from the bank. Credits Suisse had already announced the loss of 6,000 jobs from its payroll.
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  • Good Morning and here are your headlines:

    • National Security Adviser Michael Flynn resigns after apologizing to Vice President Mike Pence for misleading him on Russian relations, in a significant blow to Donald Trump's administration.
    • Credit Suisse posts a worse than expected loss in the fourth quarter and announces more job cuts, but the bank pushes ahead with its Swiss business IPO. 
    • Michelin expects an uptrend in mining demand to put some air in its earnings tires as the French group reports results in line with expectations.
    • EDF net income falls short of expectations as it considers more asset sales. The CEO says power prices in France will rise to fund the firm's investments. 

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  • German 4th quarter adjusted GDP coming in at 0.4 percent with a 1.7 percent rise on the year. Both of those figures just undershooting expectations. 

    That data not moving the needle on the euro-dollar, which presently looks like this.


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  • German industrial group Bilfinger has published a strategy update alongside its latest set of annual results. 

    The company posted a sharp decline in its adjusted cash flow and output volume for the last financial year. However, Bilfinger is planning to reinstate its dividend as it targets a return to positive adjusted free cash flow by 2018. 

    Thomas Blades, the CEO of Bilfinger is on air and says the strategy is management-led and has not been pushed through by shareholders.


    Blades says most of the job cuts are now behind the firm.
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  • The U.S. is one of the few countries in the world that has not developed a digital agenda. I am very hopeful the new administration will address that. 
     
     
     
     - John Chambers, Executive Chairman, Cisco

    Chamber: Optimistic about Middle East because of digitization 

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  • Federal Reserve Chair Janet Yellen will deliver her semi-annual testimony to the Senate later today.

    ING is predicting Yellen cold adopt a slightly more bullish tone.

    With markets pricing in just a 30-35% chance of a March rate hike, we see limited downside risks to the dollar if the status quo is retained. The Fed chief may alternatively look to nudge expectations up to 50:50 in a bid to keep the option of a March hike on the table.
     
     

    Could Yellen talk up a March rate hike?

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  • This uncertainty is going to continue for a while but markets accept that. 
     
     
     
     
    Our guest host today is Mouhammed Choukeir, Chief Investment Officer at Kleinwort Hambros. He says what markets are hungering for is more detail on his economic plan.

    Choukier says if you can ignore Trump, The United States economy is doing pretty well.

    For Yellen's team, he thinks the Federal Reserve might let the U.S. economy run a little hot before raising rates.

    He says companies and individuals may be left to get themselves in to a better position to cope with higher rates, once they do arrive.


    On sector picking, Choukeir said he his strong on financials as the area remains unloved by too many.

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  • Michael Flynn has resigned as President Trump's national security adviser. Flynn - who came under fire over conversations with a Russian official - said in a statement that he had "inadvertently briefed the Vice President and others with incomplete information" over the discussions. 

    Flynn's resignation followed a day of mixed messages from the White House. Earlier, Press Secretary Sean Spicer told reporters the President was evaluating the situation. 

    But just hours before, Senior Trump aide Kellyanne Conway told MSNBC that Flynn had Trump's support. 

    Click play to hear her comments.

    by david.reid

    Retired army general Keith Kellogg, a top policy adviser during Trump's presidential campaign, has been named Acting National Security Advisor in Flynn's place. 

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  • European futures are lower, with around 30 minutes to go until the open of trade. 



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  • Europe markets seen slightly higher; Credit Suisse reports earnings

    CNBCEuropean markets are set to edge higher at the open Tuesday as investors eye a slew of corporate earnings.
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  • Euan Munro, CEO of  Aviva Investors has joined the team on set in London.

    Steve highlights two funds that are attracting inflows and Munro says they are identifying client need.

    He says in the modern world there is an absence of pensions that help people to build cash, so people want help to build a pot.

    Euan Munro, CEO of  Aviva Investors  

    Munro says he is targeting a level of around 4 percent for investors. He says the target audience is those who are saving for retirement.
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  • Credit Suisse has reported mixed results after fourth quarter losses came in larger than expected. But pre-tax profits topped analyst expectations, boosted by a strong quarter in the investment banking and capital markets groups. 

    Credit Suisse shares are seen opening up more than 1 percent in pre-market indicators. 

    Tidjane Thiam, CEO, Credit Suisse 

    The company CEO, Tidjane Thiam, told Carolin earlier this morning that the outflows suffered by the bank in 2016 derived from two blocks: Seasonal and strategic.

    "Some of that was seasonal, about 1.6 million Swiss francs, which we see every year in Switzerland and which is a multitude of mortgages, taxes etc."

    "About 3.4 (million Swiss francs) was our program because we are exiting external asset managers … And the rest is Latin America, where we have a regularization program. We did it in Europe, we're now doing it in Latin America, but I see all that as an investment for the future."


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  • This is a flat average for the European Stoxx 600.


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  • And this is how the main bourses have opened.


    Portugal yet to wake up...


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  • Credit Suisse has reported mixed results after fourth quarter losses came in larger than expected. 

    But pre-tax profits topped analyst expectations, boosted by a strong quarter in the investment banking and capital markets groups. 

    The bank has announced another 6,500 job cuts and that turnaround plan seems to be impressing investors.


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  • Actelion has posted annual revenues of 2-point-4 billion Swiss Francs, an 18 percent increase on the previous year. The company also reported double-digit sales and net income growth. 
    The earnings release comes after U.S. pharma giant Johnson & Johnson agreed to buy Actelion for 30 billion dollars last month. 

    Rolls-Royce posted a record 4 point 6 billion pound loss for 2016 as a bribery fine and weaker Sterling hurt results. The aircraft engine maker saw underlying profit before tax fall nearly 50 percent. The board said it carefully reviewed the dividend but did not raise it due to the cash demands on the company. The stock now at the bottom of the FTSE 100.


    Troubled German industrial group Bilfinger posted a sharp decline in its adjusted cash flow and output volume for the last financial year. However, Bilfinger is planning to reinstate its dividend as it targets a return to positive free cash flow by 2018.

    HeidelbergCement missed expectations with its fourth quarter earnings -- reporting a 4 percent fall in revenue, due to bad weather in Germany and North America and weakness in its Indonesian business.
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  • Randstad has beaten estimates, posting a 9 percent rise in core earnings in the fourth quarter. Revenue rose 11 percent, helped by strong growth in Europe and the acquisition of U.S. jobs website Monster Worldwide. Randstad also hiked its dividend to 1-euro 89-cents a share. 

    The CEO and CFO of Aryzta are to step down as the embattled bread maker looks to turn around the business. The company is considering a sale of assets to improve its balance sheet. The stock has lost over 60 percent of its value since March 2015.


    Michelin is hoping an upturn in mining sector demand will help to lift profits this year. This as the French tyre maker posted a 4-and-a-half percent increase in operating profit for 2016. Despite stronger sales volumes, Michelin's revenue fell 1-point-4 percent due to weaker pricing.

    EDF's core earnings fell nearly 7 percent in 2016 on lower nuclear production. Revenues at the French utility declined 5 percent year-over-year. The state-owned group confirmed its outlook for 2018, which CEO Jean-Bernard Levy called QUOTE "the year of the rebound."
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  • Rick Lacaille, Global CIO, State Street joins us live to discuss if Trump will be good for stocks:
     
    Earnings haven't been bad but the question is how Trump is going to change reality. We have got some sense of what he is got from a policy perspective but it is very difficult to translate it to a bottom up forecast of individual stock earnings. I guess all we know is on balance it is going to be good for earnings in 2017 but you are bringing forward some growth that might happen in 2018 and 2019.
     
    Mouhammed Choukeir, Chief Investment Officer, Kleinwort Hambros says there is a risk factor that is getting very little coverage:
     
    Clearly the market is buoyed by all this positivity. The big risk factor that is getting very little coverage is the accumulation of debt that will come at the back of these programs. During the campaign there was a lot of research that was done that suggested that this is going to increase the debt quite dramatically and make the sustainability of the debt in the US quite vulnerable. 
     
     
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  • Toshiba results have shown a mammoth 9-month net loss of 499.9 billion yen. 

    The chairman is to resign and a press conference is due in a little more than an hour.  The firm took a full year impairment charge of 712. 5 billion on its nuclear operations.
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  • Rolls-Royce posted a record 4.6 billion pound loss for 2016 as a bribery fine and weaker Sterling hurt results.

    The aircraft engine maker saw underlying profit before tax fall nearly 50 percent. The board said it carefully reviewed the dividend but did not raise it due to the cash demands on the company.
     
    Here is a look at the company's share price performance over the past 6 months:
     
     
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  • European markets have got off to a cagey start. the easy analysis is that investors are awaiting the semi-annual testimony from Federal Reserve chair Janet Yellen later this afternoon.

    When you include yesterday's trade, European stocks are still firmly in the green zone.


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  • Here are your top headlines at this hour:

    • Credit Suisse feels the love on Valentine's Day. Shares rally as pre-tax profits beats expectations, while the bank outlines more restructuring measures. 
    • A record loss for Rolls-Royce. The engine maker loses 4.6 billion pounds in 2016 as a bribery fine and weaker Sterling hurt the bottom line.
    • Turmoil at Toshiba. The chairman announces his resignation as a delayed earnings release sends the stock down 8 percent in Tokyo.
    • National Security Adviser Michael Flynn resigns after apologizing to Vice President Mike Pence for misleading him on Russian relations, in a significant blow to Donald Trump's administration. 
    Comment ()
  • Mouhammed Choukeir, Chief Investment Officer, Kleinwort Hambros compares the Russian and French political situation:
     
    The Russian dynamic is making its way into French politics as well with things like some of the fake news that has been tweeted and some hacking. 

     
     
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  • Karen runs through the biggest stock movers after initial trading has settled in Europe.

    by david.reid
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  • The Stoxx 600 basic resources index has rallied more than 13 percent since the start of 2017, amid hopes of a massive U.S. infrastructure push. The S&P 500 materials index has also surged since President Donald Trump's election victory. 
     
    Tyler Broda, Mining Analyst, RBC Capital Markets joins us live to discuss more:
    When you look at what has happened over the past three years, the companies have gone through an unbelievable amount of pressure, you have seen them cut their capex back, you have seen them embed their cost saving which wasn't possible 2-3 years ago. 
     
     
     The pick up in demand in China once again has brought us away from apocalyptic 2015 and credit crisis situation in China period and back up to a much more normalized number in demand.
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  • A financial newsletter known as "La Lettre de L'Expansion" has engaged investors in the French telecom sector.

    This after reporting yesterday that talks of consolidation have resumed among the major players.


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  • Roy Sebag, CEO, GoldMoney joins us live to discuss the trends in gold market:
     
    Think about gold as an alternative commodity money and when you use gold you are not using the banking system and there are reasons not to use the banking system to exchange value. A banking system can take 2-3 days and wide spreads. Conversely if you use the gold market you can transfer instantly and at 0.5 percent interest.
     
     
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  • Russian lawmaker Slutsky has reportedly said that the resignation of Flynn is damaging to U.S.- Russian relations.

    He is reported by RIA as saying that it was clear Flynn was forced to resign in an attempt to harm the relationship.
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  • Italy's economy grew moderately in the fourth quarter of last year thanks to firm domestic demand, while full year 2016 growth came in slightly above the most recent official forecast, data showed on Tuesday.

    Gross domestic product rose a quarterly 0.2 percent at the end of the year, following a 0.3 percent rise in the July-to-September period, and was up 1.1 percent on an annual basis, national statistics bureau ISTAT reported.

    That compared with an average forecast of a 0.2 percent rise quarter-on-quarter, up 1.0 percent year-on-year, in a Reuters survey of 27 analysts.

    Third quarter growth was confirmed as having risen 0.3 percent quarter-on-quarter, but the annual rise was revised up to 1.1 percent from 1.0 percent previously reported.
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  • The CEO and CFO of Aryzta are to step down as the embattled bread maker looks to turn around the business. The company is considering a sale of assets to improve its balance sheet.

    The stock has lost over 60 percent of its value since March 2015.
     
     
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  • European markets trade mixed as investors eyed a slew of corporate earnings:
     
     
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  • Higher-rated euro zone government bond yields edged lower in the face of an uncertain political and monetary policy outlook.

    German economic growth figures also helped to cap yields, tamping down the inflation outlook as they came in slightly below expectations at 0.4 percent in the fourth quarter.
     
     
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  • Credit Suisse shares getting a boost despite reporting mixed results --including fourth quarter losses that came in larger than expected. 
     
    But pre-tax profits topped analyst expectations, boosted by a strong quarter in the investment banking and capital markets groups. 
     
     
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  • The German economy looks set for a solid performance at the start of 2017, with industrial orders signalling a revival in manufacturing, but trade-related risks are clouding the outlook, the Economy Ministry said on Tuesday.

    Economic indicators are pointing to a solid start for the year 2017," the ministry said in its monthly report, adding that rising orders in manufacturing and construction signaled economic expansion in the first quarter of 2017.

    However, uncertainties remain especially in the trade environment," the ministry said. "The outlook for the global economy remains subdued.
    Comment ()
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