World Markets Live - February 8 - CNBC Live Events

CNBC Live Events

World Markets Live - February 8

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

    Beat Wittmann, partner of Porta Advisors, answers whether or not Donald Trump’s policies are good or bad for stocks?

    For the time being it’s good. It’s good and I think that run still has some legs, because Trump is Trump, he’s not a Republican, he’s not a democrat and, as he’s basically a family business leader, he will not like to see the stock market down really and he would not like to have unemployment rising, so these two things will be the guiding light of his presidency.

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    Here are your top headlines at this hour:
    • Rio in recovery. The commodity bounce back boosts Rio Tinto earnings as the mining giant raises its dividend and launches a share buyback.
    • Maersk names its new Chairman as the shipping group cuts its dividend after impairments result in a near 2 billion dollar net loss, sending the shares to the bottom of the Stoxx 600. 
    • Vestas gets a tailwind as the company raises its dividend and announces a share buyback program after a fourth quarter beat. 
    • Investors dismiss a turnaround in orders for ABB as the Swiss industrial giant misses sales expectations. The CEO tells CNBC he's remaining cautious on 2017.
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    Germany's DIHK survey sees export growth of 3 percent in 2017, strongest rise in export expectations since 2014, previous forecast was 2 percent. 
    Germany's DIHK chambers of commerce sees German growth of 1.6 percent in 2017, up from autumn forecast of 2 percent.
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    A little over thirty minutes since the start of the European session and stocks are trading mixed:
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    Europe markets higher on earnings; political uncertainty remains

    CNBCBourses in Europe were higher Wednesday as the earnings season continues to be the main focus for investors.
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    US Secretary of State Rex Tillerson has reached out to Asian Pacific allies Australia, Japan and South Korea to stress the United States' commitment to strengthening military ties.
    According to a State Department spokesperson, Tillerson addressed the United States' role in tackling tensions in the South China Sea, as well as the nuclear threat from North Korea in three phone calls with his counterparts. The calls come as America's Asian-Pacific allies have raised concerns over President Donald Trump's attitude towards America's military commitments in the regions. 
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    Democratic Senators are staging an all-night debate, this time over the nomination of Alabama Senator Jeff Sessions, President Trump's pick for Attorney General. 

    Earlier in the evening, Republicans interrupted Massachusetts Senator Elizabeth Warren after she quoted an excerpt of a letter written by the widow of slain civil rights leader Martin Luther King Jr, criticising the Alabama Senator's character. 

    Republicans then voted to forbid Warren from speaking during the remainder of the debate, drawing outcry from Democrats.

    by luke.graham

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    Swedish bank SEB has appointed its corporate banking chief Johan Torgeby as its new CEO to replace Annika Falkengren, who announced her resignation last month after 11 years in the role.

    Johan Torgeby, 42, is currently co-head of the Large Corporates and Financial Institutions division and a member of the executive committee at SEB, the Nordic region's top corporate bank.

    In his capacity as co-head of Large Corporates & Financial Institutions he has taken important steps to transform and develop the business as a response to a rapidly changing regulatory and banking landscape, Chairman Marcus Wallenberg said in a statement on Wednesday.
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    Tullow Oil shares down 4.5 percent, biggest loser in Stoxx 600:
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    The dollar has risen to a more than one-week high as it gained for a fifth straight session, bolstered by technical buying after recent losses as well as political uncertainty in Europe with a slew of elections this year.

    The greenback posted its best one-day gain since mid-January, rising at the expense of the euro, which has struggled on renewed worries about Greece's debt problems and signs that far-right candidate Marine Le Pen is gaining momentum before France's presidential election.
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    Today’s full year results from Rio show underlying earnings are up 12% from $4.5 billion to $5.1 billion.
    Laith Khalaf, Senior Analyst, Hargreaves Lansdown says: 
    All the dials seem to be moving in the right direction at Rio, mainly thanks to the self-help measures implemented by the company. Mining companies are price-takers, and have no control over commodity markets, but Rio has made ground by cutting cash costs and scaling back the dividend.
    However after a ruthless cut last year, the dividend now looks to be back on track, and the final payment announced today is way higher than expected. The fact that Rio has also decided to return capital to investors via a share purchase plan, as well as ramping up its capital expenditure, suggests the company is pretty bullish about its prospects going forward.
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    These are the top headlines this hour.

    • Maersk names its new Chairman -- the shipping group cuts its dividend after impairments result in a near 2 billion dollar net loss, sending the shares to the bottom of the Stoxx 600.
    • Investors dismiss a turnaround in orders for ABB as the Swiss industrial giant misses sales expectations. The CEO tells CNBC he's remaining cautious on 2017.
    • Rio in recovery. The commodity bounce back boosts Rio Tinto earnings as the mining giant raises its dividend and launches a share buyback.
    • Carlsberg shares sink after fourth quarter sales miss analyst estimates.  The Danish brewer warns of difficult market conditions in its Russian and Eastern European markets. 
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    The Reserve Bank of India keeps its interest rate, repo rate and reverse repo rate unchanged.

    The bank says this decision is consistent with the neutral stance of monetary policy. It projects inflation of 4 to 4.5 percent between April and September this year.

    The bank expects growth of 6.9 percent for the 2016/2017 fiscal year ending March.
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    Maersk shares sinking to the bottom of the Stoxx 600 after posting a $2.7 billion loss in the fourth quarter, dragged down by impairment charges. 

    The shipping and oil group also announced Chairman Michael Pram Rasmussen would step down at the end of March.  He will be replaced by Jim Haggeman Snabe.  

    Meanwhile, Vestas is trading slightly up this morning after the company raised its dividend as fourth quarter revenue came in slightly below expectations. 

    The wind energy group said all regions contributed to an increased order intake which was higher than forecasted

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    Gold prices firmed this morning, moving near 3-month highs on the back of political and economic uncertainty in the U.S. and Europe.

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    Rio Tinto shares are heading higher after it reported a return to profit. The Anglo-Australian miner beat estimates, as underlying earnings hit $5.1 billion for the full-year, and a bigger than expected annual dividend of $1.70 a share was announced

    Rio Tinto also says it will buy back up to $500 million of shares this year.

    Here's a 7 day chart of Rio's share price.

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    Disney CEO Bob Iger delivered some support to the company's shares in extended trade, after saying he is open to extending his term as chief. 

    The comments helped pare initial losses as Disney reported lower than expected revenue in the first quarter -- weighed down by continued weakness at ESPN. One area of strength though, was the company's theme parks.

    CNBC spoke exclusively to the Disney CEO and asked for his opinions on President Trump's immigration ban
    by luke.graham
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    Willem Sels, chief market strategist at HSBC Private Bank, shares his investment advice.

    We have a neutral overall on the equity market, which sounds quite boring, but I think most forecasts are for the 3, 4, 5 percent level returns for the year, which kind of equates to neutral.

    We need to pick and choose so we have a barbell approach in our portfolios and in our recommendations. Basically we take risk in America in some of the cyclicals, in Europe we are defensive in terms of value. 

    We have some hedges: we like gold, we think it’s headed for $1390, and we like hedge funds.

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    ABB shares are sinking lower after it posted a slight rise in fourth quarter orders, putting an end to its near two-year decline in order intakes. 

    Shares in the company are down 2.4 percent today.

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    Shares in Sanofi are trading higher, after lower restructuring costs more than doubled fourth-quarter net profits from a year earlier. 

    Net income, however, edged down 6 percent and total sales rose 3 percent. The French drugmaker said it expects earnings per share to remain stable or decline by up to 3 percent in the current year.

    Shares in the French company are up 2.6 percent today.

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    The UK's Brexit Bill enters its last day of debate today, with the government said to be confident that the legislation will pass its third and final reading when MPs vote in the House of Commons later. 

    Debating a fresh round of amendments yesterday, Prime Minister Theresa May endured a rebellion from several Conservative MPs over a Labour-tabled change that demanded parliament be consulted on the final Brexit deal. The amendment was narrowly defeated by 33 votes. 
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    Betsy DeVos, President Trump's nominee for Education secretary, was confirmed by the Senate, after Mike Pence cast a historic tie-breaking vote, the first ever by a Vice President to confirm a cabinet nominee. 

    Two Republicans voted in opposition to DeVos, alongside all 46 Democratic Senators and two independents. But as Vice President, Pence also serves as the President of the Senate, with the duty to cast a tie-breaking vote in the event of deadlock. 

    The vote followed an overnight debate staged by Democratic Senators who had hoped to derail the nomination, and raise public awareness of what they view as her unpreparedness for the post.  

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    President Trump's executive order banning citizens of seven predominantly-Muslim countries faced intense scrutiny from a three-panel judge in the 9th U.S. Circuit of Appeals in San Francisco. Lawmakers said they would issue a ruling as soon as possible, "probably" coming this week. NBC's Pete Williams has the latest.

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    Handelsbanken is trading near the bottom of the Stoxx 600 after posting disappointing earnings. The company reported a quarterly operating profit and an annual dividend below expectations. Loan losses jumped 75 percent, weighing on the Swedish bank's fourth quarter results.

    Anders Bouvin, CEO of Handelsbanken, says he thinks the 4th quarter was actually strong for the bank’s core businesses.

    Both our net interest income and our fee income were the highest ever recorded in Handelsbanken’s history. We move into 2017 with good momentum and we see growth in all our home markets.

    In Sweden we see quite good momentum. If we look at our results in Sweden income is up and costs are down and operating profits compared with the same quarter 2015 is up.

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    The investment bank Moelis has been chosen as the sole independent advisor for the planned listing of Saudi Aramco, according to the Financial Times. 

    Saudi Aramco is expected to be valued at up to three trillion dollars when it comes to market.  Moelis will assist on the execution of the floatation, but other banks are still in the race to underwrite the offering.  
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    Oil prices are moving a bit lower, after falling sharply in yesterday's trade. 

    The rout was triggered in part by data from the American Petroleum Institute, showing that U.S. crude inventories rose by over 14 million barrels last week. A report on slowing Chinese demand for crude also weighed on prices.  

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    Carlsberg is trading near the bottom of the Stoxx 600 after the company's fourth quarter sales missed analyst estimates as the Danish brewer experienced difficult market conditions in its Russian and Eastern European markets. Net profit for 2016, meanwhile, rose to 4.5 billion Danish kroner, just topping estimates. 

    Carlsberg proposed a dividend of 10 kroner per share, and says it expects mid to single digit growth in net profits for 2017.

    Cees't Hart, CEO at Carlsberg, says 2016 was a good year for the company, but a ban on large beer bottles in Russia were a problem.

    At the end of quarter 4, Russia was a bit weak. That has a cause that there is a ban on big bottles. That ban is starting from the 1st of January 2017 and we needed to participate for that in quarter 3. So what you see is in quarter 3 is strong sales and quarter 4 low sales in anticipation of and being prepared for that ban.

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    European markets are making strong gains today. The Stoxx 600 is up more than half a percent.

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    Nigeria's parliament has approved the government's request to sell a $1 billion eurobond, a spokesman has said, Reuters reports.
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    The Indian central bank kept rates on hold for the second consecutive meeting. It surprised markets by switching its view from accommodative to neutral.

    Kevin Loane, economist for Fathom Consulting, says the central bank has turned hawkish.

    We have pointed out that the easing in consumer price inflation over recent months has mostly reflected falling vegetables prices, with underlying price pressures still elevated. 

    But we still expected the RBI to deliver a cut in response to demonetisation, which appears to be having a more persistent negative effect on economic activity. 

    With monetary stimulus off the agenda for now, the RBI's decision should at least help to cement confidence among investors in its independence.
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    HP has announced it is closing its print business manufacturing plant in Ireland. The decision will affect up to 500 employees of the tech company. 

    See the company's statement below.

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    Marine Le Pen, leader of the French far-right party National Front, is predicted to get 25 percent of the vote in the 1st round of the French presidential election, according to the latest Opinionway poll.

    Macron is expected to get 22 percent, Fillon 20 percent.

    The poll results says Le Pen will go on to lose the 2nd round to either Macron or Fillon.

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    The Scottish Brexit minister Mike Russell says he does not believe Article 50 can be triggered without an agreement on letter from devolved administrations.

    Earlier, results from a BMG survey for the Herald Scotlan indicated rising support for Scottish independence from the United Kingdom.

    According to the survey, 49 percent of Scots now support independence, a 3 point rise from the previous poll.
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    Ukraine's economy grew 4.8 percent year-on-year in the previous quarter, compared to 2 percent in the previous quarter. This was faster than expected, according to the country's statistics chief.

    Inflation in January was 12.6 percent year-on-year.
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    Future values for U.S. markets look set for a subdued open. The S&P and Nasdaq expected to open flat.

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    The U.K. parliament looks set to approve the government's Article 50 bill with no amendments today.

    After the vote, the bill will pass to the House of Lords, where it looks set to pass without any amendments that would tie the hands of Prime Minister May in Brexit negotiation, according to Emily Nicol, economist at Daiwa Capital Markets Europe. 

    It is now clear that May will have total freedom to negotiate however she wants with the rest of the EU. 

    At the end of those negotiations, there will be no meaningful parliamentary vote on the ultimate deal reached, with no scope whatsoever to send May back to Brussels to seek alterations to any aspect of the package, and no alternative option to her proposed settlement on offer apart from the highly self-destructive WTO terms that rejection of the deal would entail.
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    Maersk shares remain sharply lower today, after the shipping company posted a $2.7 billion loss in 2016.

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    Republican Todd Rokita, says his party is on a mission “to get this country back on track.”

    He’s defending President Trump’s travel ban on CNBC.

    He’s also outlining how Republicans will repeal and replace Obamacare through reconciliation. 

    You should see healthcare repeal and some replacement in March time and then tax reform.

    I’m still hopeful it’s going to be this calendar year, maybe the start of the next calendar year.
    It has to be coming  in the next 12 calendar months.

    Rokita says his party is taking its time to find ways to pay for tax cuts.

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    Palestinian president Mahmoud Abbas says he could be obliged to cut security co-operation with Israel if it continues with its colony policy 

    Last week, Israel announced plans to build 3,000 new settlement homes in the West Bank and later 
    Israel's parliament passed a law to legalize thousands of West Bank settlement homes built unlawfully on private Palestinian land.
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    Here's today's top headlines, courtesy of TL;DR.

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    Nearly half of UK investors feel positive about Brexit, according to a new survey, 

    London-based investment firm IW Capital surveyed 1,000 U.K. investors to find out their feelings on recent political events. 44 percent said they thought Brexit would have a positive impact on their investment strategy this year.

    Luke Davis, CEO of IW Capital, commented on the results.

    It’s interesting to note investors’ plans in light of the slump in interest rates and leadership discontent; transition brings opportunity, and this is reflected in today’s research. 

    With investors looking to new investment classes as we enter into 2017, there is clearly a huge amount of confidence towards the country’s entrepreneurial capabilities, its resolute private companies and the potential of our innovative high-growth businesses to drive economic growth in 2017.
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    ECB'S François Villeroy says it would be dangerous if U.S. authorities were tempted to loosen financial regulations.

    The U.S. administration under Donald Trump is set to dismantle the 2010 Dodd-Frank financial regulatory framework that was put in place as a response to the financial crisis of 2008.
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    Time Warner's 4th quarter revenue totalled $7.89 billion, the company reported.

    For the full year, revenues increased 4 percent to $29.3 billion. 
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    GlaxoSmithKline announced a total dividend of 80 pence per share. Full year core earnings per share rose 12 percent to 102.4 pence.

    The company reported net profit in the 4th quarter of £257 million.

    Shares spiked on the earnings announcement, paring losses.

    Comment ()
    President Trump is taking to Twitter again to reveal his thinking.
    He appears to be suggesting the Justice Department which is representing his beliefs in a US appeals court represents all of America.

    A decision from the 9th US Circuit Court of Appeals, in San Francisco, is expected later this week on wether or not to uphold Trump's controversial travel ban.

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