World Markets Live - January 16 - CNBC Live Events
×

CNBC Live Events

World Markets Live - January 16

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

  • Good Morning everyone. Happy Monday. What a start to the week for sterling. But this is an interesting week, the start of the World Economic Forum in Davos, UK PM Theresa May's speech on Tuesday, the ECB rate decision on Thursday and President-elect Donald Trump's inauguration on Friday. 

    But first let's look at markets. The FTSE100 continues to rally while other indexes remain under pressure. Here are your morning calls for Europe from CMC Markets:

    FTSE100 is expected to open 13 points higher at 7,350
    DAX is expected to open 29 points lower at 11,600
    CAC40 is expected to open 12 points lower at 4,910

    Comment ()
  • Here are your top headlines at this hour:

    • Sterling gets a pounding ahead of Theresa May's key Brexit speech, as investors predict the Prime Minister will announce plans to fully break away from the EU's common market. 
    • South Korea prosecutors seek the arrest of Samsung heir Jay Y. Lee on bribery allegations as part of a political corruption scandal, sending the tech firm's shares deeper into the red. 
    • Seeing eye-to-eye. Luxottica and Essilor reportedly agree a 46 billion euro merger to create an eyewear giant in what would be one of Europe's biggest cross-border deals. 
    • The director of the CIA warns Donald Trump to watch his words as the President-elect hints he may discard sanctions against Russia, but aides deny reports he is planning to meet Vladimir Putin. 
    Comment ()
  • Sterling is trading sharply lower against the dollar amid concern the UK government is preparing to pursue a hard Brexit. The pound hit a 3-month low during the Asian session, falling below the 1-20 level for the first time since the October flash crash. 

    The latest bout of sterling weakness comes amid claims that Theresa May will strike a hard-line in her key Brexit speech on Tuesday. According to media reports, the Prime Minister will say Britain is ready to leave the EU single market in order to regain control of its borders.  

    Comment ()
  • South Korean prosecutors are seeking an arrest warrant for Samsung Group leader Jay Y. Lee. The warrant is being sought in connection to bribery charges due to his role in a political scandal that has engulfed the impeached president, Park Guen-hye.

    Comment ()
  • Samsung Group says did not make any payments with expectations to get something in return. The Group says cannot accuse accusation of currying favour for succession, merger. That's according to Reuters.
    Comment ()
  • Pauline joins us from Singapore to tell us more on that Samsung story.

    Comment ()
  • President-elect Donald Trump will seek a nuclear arms reduction deal with Russia's Vladimir Putin in exchange for the removal of sanctions imposed on the country for its annexation of Crimea. 

    This according to the Times of London. In an interview with the newspaper, the President-elect was highly critical of previous American foreign policy. He also characterized Russia's intervention in the Syrian war as "a very bad thing."

    Comment ()
  • Italy's Luxottica and France's Essilor will create one of the world's largest eyewear companies after agreeing to a 46 billion euro merger. The deal has been described as a "merger of equals.

    Comment ()
  • Despite the eyewear deal, our next guest is forecasting the M&A sector will be flat this year. New listings on the other hand are seen improving and he's cautiously optimistic on investment banking. 

    Tim Gee, M&A Partner, Baker McKenzie joins us live to discuss more:

    If we look at the global position first of all you have to realise the central importance of the U.S. We forecasted when maximum deal values are hitting in 2018, that the U.S. will represent 5 times more than the next biggest country in value terms in IPO and M&A activities. That is 2.5 trillion worth of activities, with China next at $500 million.

    Comment ()
  • Donald Trump has warned BMW that he will impose a 35 percent border tax on cars it builds in Mexico and exports to the United States. In an interview with German daily Bild, the President Elect said BMW should build its cars in the US because it would be "much better" for the company. 

    BMW, which employs nearly 70 thousand people in America, responded by saying it was "at home in the US."

    Comment ()
  • Here are your top headlines at this hour:

    • Sterling gets a pounding ahead of Theresa May's key Brexit speech, as investors predict the Prime Minister will announce plans to fully break away from the EU's common market. 
    • South Korea prosecutors seek the arrest of Samsung heir Jay Y. Lee on bribery allegations as part of a political corruption scandal, sending the tech firm's shares deeper into the red. 
    • Seeing eye-to-eye. Luxottica and Essilor agree a 46 billion euro merger to create an eyewear giant in one of Europe's biggest cross-border deals. 
    • The director of the CIA warns Donald Trump to watch his words as the President-elect hints he may discard sanctions against Russia, but aides deny reports he is planning to meet Vladimir Putin. 
    Comment ()
  • World leaders and senior executives are converging on the Swiss Alpine resort of Davos for the World Economic Forum's annual meeting. 

    The event begins just days before Donald Trump's inauguration. But the president-elect has decided not to send representatives to the event, after running a presidential campaign that was highly critical of the 'global elite'. 

    However Klaus Schwab, the Founder of the World Economic Forum, has hit back at claims that Davos attendees are out of touch with everyday people. Speaking to CNBC, he said that the event has long warned about the destabilizing forces globalization could unleash. 

    We have to make globalization more fair, Klaus Schwab, the executive chairman of the WEF, said in an interview with CNBC. "But when we talk about globalization we should not just look at it just from a western perspective but from a global perspective.


    In the last 20-30 years globalization has been part of a lot of good things, particularly for the developing world, it has created hundreds of millions of jobs especially in Asia. So we should not condemn globalization. We should make it work better.

    Comment ()
  • Former French Prime Minister Manuel Valls is trailing his main left-wing rival following a televised debate yesterday.  According to a poll by Elabe, the former economy minister, Arnaud Montebourg was 'more convincing' to 29 percent of viewers, while Valls took 26 percent. 

    The former Prime Minister was forced to defend his stance on immigration, saying that France needs to control its borders. Montebourg hit back saying that more needs to be done to address the causes of migration.

    Aarti Shankar, Policy Analyst at Open Europe joins us live to discuss more:
    It looks like Francois Fillon is still the front runner in all these elections and we still have three or four months to go and a lot can change. Marine Le Pen has seen the strength of her lead narrow. 


    The benefit of the Macron campaign is very new and very energetic. He is trying to create the impression of an anti-establishment cabinet. 

    Comment ()
  • Time for World Markets Live TL;DR now. Let's see what Uptin has for us today:


    Comment ()
  • CIA Director John Brennan has warned President-elect Donald Trump to be careful about what he says, suggesting the incoming President's spontaneity could be harmful to national security. The outgoing CIA Chief spoke on Fox News Sunday.


    It's about the United States and our national security. And he has to make sure that now that he's going to have an opportunity to do something for our national security as opposed to talking and tweeting, he's going to have tremendous responsibility to make sure that US and national security interests are protected and our advanced.

    Comment ()
  • Trump fired back at Brennan, saying that the CIA Director "could not have done worse" given the conflicts in Syria, Crimea, Ukraine and Russia. He also suggested Brennan may have responsible for leaking the unsubstantiated Russian dossier last week. 

    Comment ()
  • Iran's deputy foreign minister says the country's historic nuclear deal will not be renegotiated. 

    Speaking at a press conference one-year on from the landmark agreement, the senior nuclear negotiator sent a warning to the United States ahead of Donald Trump's inauguration, saying  the U.S. must remain committed to the pact.  

    Comment ()
  • Coming up on the show: Donald Trump lashes out at what he calls Angela Merkel's migrant mistake.

    We'll talk to the Germany's Deputy Finance minister to get his take - after this break. 

    Comment ()
  • Here are your top headlines at this hour:

    • A sell-off accelerates in Asia, led by China's Shenzhen which sinks as a number of companies hit their daily downside limit. 
    • Sterling gets a pounding ahead of Theresa May's key Brexit speech, as investors predict the Prime Minister will announce plans to fully break away from the EU's common market. 
    • South Korea prosecutors seek the arrest of Samsung heir Jay Y. Lee on bribery allegations as part of a political corruption scandal, sending the tech firm's shares deeper into the red. 
    • Seeing eye-to-eye. Luxottica and Essilor agree a 46 billion euro merger to create an eyewear giant in one of Europe's biggest cross-border deals. 
    Comment ()
  • European futures point to a lower start to the trading day as investors wait for the U.K.’s prime minister Brexit plan and the inauguration of President-elect Trump in the U.S. later this week.

    Comment ()
  • At the end of two days of meetings with CDU leaders, Angela Merkel urged the United States to stick to multilateral cooperation, warning that Trump's protectionist attitudes could threaten the global economy.

    Germany's Deputy Finance Minister Jens Spahn joins us on phone from Berlin:
    The complaint is not new for us. It has something that has been said by politicians in EU member states so we have had this debate before too. What he (Trump) said is nothing new for us. 


    We have to get the issues clear. One thing is refugees and we want to help people fleeing from way but on the other hand we have immigration issues to attend. We have to debate immigration especially from the North African countries, most of them are not refugees. They are coming for understandable reason but are not refugees.

    Comment ()
  • Sterling is trading sharply lower against the dollar amid concern the UK government is preparing to pursue a hard Brexit. The pound hit a 3-month low during the Asian session, falling below the 1-20 level for the first time since the October flash crash. 

    Comment ()
  • Vice President-elect Mike Pence said he hopes Georgia Democratic Representative John Lewis will reconsider his decision to skip Trump's inauguration, adding that he was "deeply disappointed" to see someone of his stature question the President-elect's legitimacy. 

    Comment ()
  • Here are the top headlines at this hour:

    • A sell-off accelerates in Asia, led by China's Shenzhen which closes more than 3 and half percent lower as a number of companies hit their daily downside limit. 
    • Sterling gets a pounding ahead of Theresa May's key Brexit speech, as investors predict the Prime Minister will announce plans to fully break away from the EU's common market. 
    • South Korea prosecutors seek the arrest of Samsung heir Jay Y. Lee on bribery allegations as part of a political corruption scandal, sending the tech firm's shares deeper into the red. 
    • Seeing eye-to-eye. Luxottica and Essilor agree a 46 billion euro merger to create an eyewear giant in one of Europe's biggest cross-border deals. 

    Comment ()
  • Societe Generale has decided to enlarge the General Management team with the appointment of a new Deputy Chief Executive Officer, Didier Valet. 

    SocGen said change meets a dual objective of enhancing both our client-focused approach and the Group's governance.
    Comment ()
  • Donald’s Trump comments rattled the pharma industry last week.

    Jamie Davies, head of pharmaceuticals, medical devices & healthcare at BMI Research, comments on what Trump can do to curb high prices in the health industry.

    In terms of actual changes, changes to legislation, changes to the way Medicare purchases drugs, probably not all that much. What he is more likely to do is to force the drugs companies themselves to rein in some of these big price rises they’ve done recently.

    Comment ()
  • Jamie Davies, head of pharmaceuticals, medical devices & healthcare at BMI Research, says investors in the healthcare industry are right to be concerned.

    Things in the western European drug market are not doing great as well, and in emerging markets. Before, the U.S. was the really stand out positive market for drug makers and emerging markets, so the big three are all suffering weakness.
    Comment ()
  • Mergers and acquisitions activity in the United Kingdom will drop sharply in 2017 due to uncertainty over the terms of its exit from the European Union, law firm Baker McKenzie said in a report published on Monday.

    Baker McKenzie said that while M&A activity would have only a modest impact on European transactions if there was an amicable divorce, the lack of clarity over Brexit could hurt activity in the United Kingdom.


    Given Brexit's impact on business confidence, we expect M&A values to fall by two-thirds in 2017 after numerous large deals in the first half of last year boosted 2016, Tim Gee, London M&A partner at Baker McKenzie said.
    Comment ()
  • Essilor shares are called to open up 10 percent by traders, while Luxottica is seen opening up 5 percent. This after Italy's Luxottica and France's Essilor said they will create one of the world's largest eyewear companies after agreeing to a 46 billion euro merger. The deal has been described as a "merger of equals.

    Luxottica's founder and Italy's richest man, Leonardo Del Vecchio, is set to take a 31 percent stake in the merged entity, which is expected to be headquartered and listed in Paris. 
    Comment ()
  • European markets are now open for trading with the Stoxx Europe 600 opening 0.6 percent lower:

    Comment ()
  • Major European indexes have opened in the negative territory as markets remain cautious ahead of a number of events this week - UK PM Theresa May's speech on Tuesday, the World Economic Forum kicking off in Davos, the ECB press conference and U.S. President-elect Donald Trump's inauguration on Friday:

    Comment ()
  • Let's take a look at the best and the worst performing stocks this morning. Hugo Boss is at the top of the best performing list. 

    Meanwhile, Italy's newly merged bank Banco BPM is at the bottom of the Stoxx Europe:

     
     

    1 of 2


    Comment ()
  • Autos tops sectoral fallers, down 1.6 percent this morning, followed by banks, down 1.5 percent:

    Comment ()
  • James Butterfill, head of research & investment strategy at ETF Securities, says populism is a big concern among investors this year.

    Clearly markets seem fearful at the moment. If you look at the gold price this morning its up quite strong, it’s about $1205.


    There’s so many big events this year overall, let alone this week. In Davos, for instance, the big topic will be populism.

    Don’t forget we have the elections in the Netherlands in March, the elections in France in April and May, and the elections in Germany, all where populists are really picking up in popularity.
    Comment ()
  • Hugo Boss shares are searing this morning, up 7 percent. This after the company announced it expects 2016 adjusted EBITDA to come in at the upper end of its forecast range - a decline of between 17 and 23 percent. The German fashion brand said based on preliminary figures, it's on track to achieve its annual financial targets. 

    Comment ()
  • Shares in Luxottica hit highest level since end-January since end-Jan 2016, up 14 percent. Meanwhile, Essilor is up 16 percent. This as both companies agree a 46 billion euro merger to create an eyewear giant:


    Comment ()
  • Luxottica and Essilor are at the top of the Stoxx 600 today on the merger agreement, but the deal may come under regulatory scrutiny. Michael Browne, fund manager at Martin Currie, comments on the regulators and the market's reaction.

    Just wait and see. It’s also going to be big in the states, don’t forget that, so we’re going to have the U.S. looking at this as well. But for the time being the market is saying, yes, this is a great deal.

    Comment ()
  • The European banking index is trading 1.4 percent lower. The index gained some strength last week on the back of strong corporate results from U.S. banks but is back in negative territory as investors remain worried about the state of the European banking sector:


    Comment ()
  • Michael Browne, fund manager at Martin Currie, answers whether or not this year will be a breakout year for earnings.

    It’s been six negative years we’ve had on the trot! A breakout year would be flat! That would be very exciting.

    I think the expectation at the moment in people’s minds is about plus 8 percent for earnings this year. If you took a look at the consensus numbers it’s about 13 percent. On my numbers I actually think we will do 13 percent and we’ll do better than that, because every indication that I have is growth is going to be around the 2 percent plus for European GDP.
    Comment ()
  • Here are your top headlines at this hour:

    • Seeing eye-to-eye. Luxottica and Essilor agree a 46 billion euro merger to create an eyewear giant in one of Europe's biggest cross-border deals, sending shares in both retailers soaring. 
    • Shares in Hugo Boss get a boost, after the luxury retailer posts a slight fall in holiday sales, but expects profit to come in at the upper end of 2016 forecasts. 
    • Italian banks slide after DBRS cuts Italy's credit rating to BBB from A, warning the banking sector remains weak amid a fragile economy. 
    • Sterling gets a pounding ahead of Theresa May's key Brexit speech, as investors predict the Prime Minister will announce plans to fully break away from the EU's common market.

    Comment ()
  • We are live from Davos. Stay tuned as we live blog all the latest from the 2017 World Economic Forum:


    Comment ()
  • Italian banks slide after DBRS cuts Italy's credit rating to BBB from A, warning the banking sector remains weak amid a fragile economy. 

    Comment ()
  • Joining us now from Davos is Jin Liqun, president of the Asian Infrastructure Investment Bank (AIIB), who tells us what the biggest issues are at Davos this year.

    This year there are lots of interesting things to discuss here and I think China is giving people a lot of confidence with the resilience of China’s economy, but also I think people will be looking forward to the sustained recovery and growth of the major economies, and also for me I like to meet the people who are interested in our bank.

    Comment ()
Powered by ScribbleLive Content Marketing Software Platform