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.

  • Live from Davos, CNBC's Carolin speaks with AIIB President Jin Liqun:



    Comment ()
  • Mike Jakeman, global analyst at the Economist Intelligence Unit, comments on the relationship between Donald Trump and Russia.

    The big question mark prior to the publication of the dossier was why Donald Trump was treading this very pro-Russian line, in spite of growing evidence of Russian interference in the election, to the point that he was taking Russia’s side over the U.S. intelligence community.

    Now the dossier may or may not be an answer
    to that.
    We don’t know, we may never know. But what I think is important going
    forward from now on is whether or not he’s able to get the support of Congress
    for walking this pro-Russian line.

    Comment ()
  • Paul Donovan, global chief economist at UBS had this to say at the UBS Wealth Insights conference in Singapore this morning: 

    We do absolutely think inflation coming in. The U.K. and Switzerland are two markets where expectations may be too high for inflation. The U.K. has a very competitive retail sector. Although consumer prices are going up, consumer prices are not going up as rapidly. They’re going up, absolutely, but they’re not going up quite as rapidly as competition …

    The U.K. has more online shopping as a share of total spend than any other country in the world. …The problem with the five-year view is what does it look like in a post-exit environment after the U.K. has left, what happens. Theresa May, the prime minister, is giving a speech tomorrow outlining her strategy for the exit. As is the norm in the U.K., the speech was leaked yesterday comprehensively. 


    British politics has all the drama and suspense of a Mr. Bean movie. And what we are now looking towards is a hard Brexit, or an abrupt exit, with … tax cuts on the corporate side. The idea is to attract money in. so I think the U.K. on a five-year view probably has a somewhat lower trend rate of growth, population growth will be lower because the immigration controls and with that productivity growth will be lower. Most of the immigrants have higher skills than equivalent local population. But I don’t think it will be dramatically lower. We’re talking about a move from about 2.25-2.5 percent trend going down to 2.0-2.25 percent. So it’s a moderation of trend growth. 


    Comment ()
  • Rick Samans, managing director of the World Economic Forum, discusses a report out today which highlights 15 areas of economic policy that would be good for growth and society.

    We’ve done some work over the last couple of years to think about whether there are actually some synergies between lowering inequality on the one hand and boosting growth with the other.

    Now the world is basically in loud agreement that inclusive growth is the way to go, but it’s been much more aspiration than action frankly for the last couple of years.

    Comment ()
  • Spokeswoman for British PM says talk of hard Brexit is "speculation". That's according to Reuters.
    Comment ()
  • Our coverage of the World Economic Forum in Davos will continue throughout the day. Don't miss our show live from the mountain town this afternoon at 16:00 CET.

    Comment ()
  • Italian banks are trading sharply lower this morning. This after the DBRS cut Italy's credit rating on concerns about the country's ability to pass reforms, weakness in the banking sector and a frail economy. 

    DBRS cut Italy's sovereign credit rating to BBB (high) from A (low) after market close on Friday in a move that will mean Italy's banks must pay more to borrow money from the European Central Bank when they use the country's bonds as collateral.  

    Comment ()
  • Rick Samans, managing director of the World Economic Forum, discusses how the new report looks at a country’s development.

    We’ve put out a new index of inclusive development which includes GDP growth per capita, which is the usual way people measure the level of economic development of countries, but we’ve actually added 11 other areas that matter for growth and development, inclusion and intergenerational equity and sustainability. 

    If you look at that much broader dashboard, you see some big differences between GDP calculations and this.

    Samans says the U.S. in notable because it scores highly for GDp growth but scores low on these other "inclusive growth" factors.
    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. 
    • Like a Boss! 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 ()
  • These are the top headlines 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.
    • Like a Boss! 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 ()
  • Deane McRobie, reporter for consumer and retail at Mergermarket Group, comments on the merger between Essillor and Luxottica and whether or not there is a political angle to the deal.

    I don’t see this as political at all. I see this as a straight business deal. Three years ago when talks fell apart at the very preliminary stages, I don’t have any reason to believe that was political, I think the business case was not quite as clear then, but I think  now there’s pretty clear synergies in a lens maker and an eyewear maker.

    Comment ()
  • Shares in Hugo Boss are soaring after the German fashion brand said it expects 2016 adjusted EBITDA to come in at the upper end of its forecasted range - a decline of between 17 and 23 percent. 

    Hugo Boss said, based on preliminary figures, it's on track to achieve its annual financial targets.

    It has been a tough 12 months for the company. Shares are down 17 percent over the period.

    Comment ()
  • The Chinese government is ready to "take off the gloves" should President-elect Donald Trump continue to provoke the country upon assuming the Presidency. 

    The English language China Daily newspaper said a period of damaging interactions was inevitable, should the President-elect continue on his current path. 

    This, after Donald Trump said the country's 'One China' policy was up for negotiation in an interview with the Wall Street Journal. China's foreign ministry has reiterated its 'One China' policy is non-negotiable, and is a crucial element to US-China relations. 

    Comment ()
  • DBRS has cut Italy's credit rating from A to triple B over concerns surrounding the country's banking sector and frail economy. 

    The news means Italy's banks will have to pay more to borrow money from the ECB when they use the country's bonds as collateral. 

    Shares of banks including Unicredit and Intesa Sanpaolo are down today. Here's a chart of the Unicredit's seven day performance.

    Comment ()
  • Stephen Isaacs, chairman of the investment committee at Alvine Capital, says he is feeling downbeat at the start of the trading week.

    Well we’ve had Trump the Movie, and I think it’s now time to see Trump the Reality and I think it’s going to be much more of a mixed bag than the market has given credit for.


    So we’ve had this massive rally, particularly in earnings (Goldman Sachs back up its 2007 high) so there’s an awful lot of lunch already eaten and actually if we see what’s happening, that Trump’s pronouncements for instance on China, could be very troubling.

    Isaacs said relations between the U.S. and China, and Brexit, are concerns for investors.
    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."

    Shares in the company are down more than 1 percent so far today. Here's how shares have moved over the past 7 days.

    Comment ()
  • Sterling remains weak today, down against major currencies, including the dollar and yen, on concerns ahead of a speech on Brexit which Prime Minister Theresa May will deliver tomorrow. 

    Comment ()
  • A Kremlin spokesman says there are no preparations for a meeting between Putin and Trump. 

    The spokesman said that sanctions are not on the Russian agenda and said the country will wait  wait until Trump takes office to consider his offer of removing sanctions in exchange for cuts to Russia's nuclear arsenal.

    Finally, the spokesman said the Kremlin agrees with Trump that NATO is obsolete.
    Comment ()
  • Valentin Marinov, managing director and head of G10 FX research at Credit Agricole, comments on what sterling investors should do considering today’s slump.

    If you want to sell the pound from here, you are better off selling it against the yen or against the euro, where the markets are still running some shorts, so there is some correction possible. 
    Comment ()
  • Iran's oil minister says he is certain that oil prices will rise and that OPEC and non-OPEC members will commit to the output cut.

    Earlier, Saudi Arabia's energy minister said it was unlikely to extend the OPEC and non-OPEC supply deal beyond June, but will if necessary. 

    He added that Saudi Arabia will strictly adhere to its oil production commitment.

    Oil prices are making marginal gains today.

    Comment ()
  • Earlier, Trump aides denied a report from The Times stating the President-elect would hold a meeting with Putin in Reykjavik in the coming weeks. NBC's Bill Neely has the latest from Moscow. 

    by luke.graham

    Comment ()
  • A deep critic of Angela Merkel, Erika Steinbach, has announced her resignation from the CDU party on criticism of the German Chancellor's migration policy. 

    Erika Steinbach accused Merkel of violating the law by allowing over a million refugees to enter Germany in the last two years. There are concerns Steinbach's decision could dampen support for Merkel before September's election, helping the anti-immigration AFD party gain momentum. 

    Merkel's immigration policies have been criticised 

    Meanwhile, Donald Trump says Angela Merkel's open door policy was a catastrophic mistake. 

    In a joint interview with British and German newspapers, the President-elect said the Germany Chancellor was wrong by "letting all of these illegals into the country". He also described the European Union as simply a vehicle for Germany, predicting that more countries will follow the U.K. out of the bloc. 
    Comment ()
  • Kit Nicholl, political and security analyst at IHS Markit, comments on the second debate for the French socialist primaries, saying it was livelier than the first.

    (Former French Prime Minister Manuel) Valls has been long seen as the favourite within this race and in the second debate he very much came under attack from the more left-leaning candidates who are trying to criticize his role as former prime minister in the highly unpopular incumbent socialist government under the presidency of Francois Hollande.

    Manuel Valls during the televised debate
    Comment ()
  • Mozambique's finance minister says it will not pay the coupon due to bondholders on January 18.

    This is because of the deteriorating macroeconomic and fiscal situation, which limits the country's debt payment capacity.

    The country is working with  the IMF to establish the resumption of financial assistance.
    Comment ()
  • U.K. inflation figures will be released tomorrow. Russ Mould, investment director at AJ Bell, suggest what to look for in the numbers.

    Inflation has begun to creep higher, stoked by a lower pound and higher oil and fuel prices. Unilever, Microsoft and Apple are just three firms to have talked about prices increases, while even New Zealand wine producers are now saying prices will have to rise. 

    The key may be to look beyond the headline CPI and RPI numbers and look at producer prices (input and output) as these may give an indication of what is coming down the food chain.
    Comment ()
  • CNBC's tech reporter is in Davos for the World Economic Forum and is sending out tweets of the stunning views from the event.


    Comment ()
  • Here is another photo from Arjun.


    Comment ()
  • The Eurozone's trade surplus beat consensus expectations, rising to 22.7 billion euros in November from 19.9 billion in October

    Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics, comments on the data.

    The headline looks great, but it only partially reverses the sharp fall in October. The higher surplus was chiefly a result of a 3.3% month-to-month jump in exports due to strong performance in Germany and France. 

    Our estimates for Q4 net trade in these two economies suggest that net exports in the Eurozone as a whole provided a moderate boost to quarter-on-quarter GDP growth. Looking ahead, we think the headline nominal EZ trade surplus will decline slightly in Q1, though, and further risks loom. 

    These risks include political uncertainty in the U.K. and the U.S. (the two main trade partners contributing to the surplus) disrupting trade flows, according to Claus.
    Comment ()
  • Major European markets remain lower this morning. The Stoxx 600 is down 0.5 percent, and the French and German indexes are lower.

    The FTSE 100 is pulling up, making modest gains. This may  be related to the weaker sterling giving a boost to the members of the FTSE 100 whose earnings come from abroad.

    Comment ()
  • In a newspaper interview, Donald Trump criticised the German leader Angela Merkel and said the European Union is simply a vehicle for Germany.

    Responding to this, a German government spokesman said it will aim for close cooperation with the new U.S. administration.

    A spokesman for Germany's foreign ministry, responding to the comments, said Germany has never seen the European Union as a means to an end for itself, and added that the picture emerging from Trump's various comments is contradictory.



    Comment ()
  • More comments from Germany following the Trump interview.

    A spokesman for the German government says TTIP (the Transatlantic Trade and Investment Partnership) would still be an important trade deal and in the interests of Europe and the U.S. to continue TTIP negotiations.

    Meanwhile, a spokeswoman for Germany's finance ministers said the country is not against "a race to the bottom" in relation to tax policy and Brexit.
    Comment ()
  • The Chinese president will visit the World Economic Forum (the first Chinese president to attend the event). He is currently on a two-day visit around Switzerland.

    Xi Jinping has told reporters that world economic recovery is still weak and China will make its contribution to the recovery.

    He says the Chinese economy is performing steadily overall and adds that he will resist protectionism.

    by luke.graham edited by Spriha Srivastava 1/16/2017 11:13:45 AM
    Comment ()
  • The auto sector is struggling in Europe today following comments by President-elect Trump.

    Donald Trump warned BMW that he will impose a 35 percent border tax on cars it builds in Mexico and exports to the United States. 

    Autos is currently the worst performing sector on the Stoxx 600, down almost 2 percent.

    Comment ()
  • A spokeswoman for the U.K. prime ministers says Theresa May welcomes Donald Trump's commitment to work on a trade deal with Britain, and says the first meeting between May and Trump should take place in the U.S.

    The arrangements for the meeting are being worked on.

    The spokeswoman also said the prime minister does not recognise media reports which saw the Government is expecting a market correction following May's Brexit speech tomorrow.

    Comment ()
  • A sea of red for European markets, with the Stoxx 600 down two-thirds of a percent today.

    Here's how the individual major European markets are looking. The FTSE100 has turned negative from a small gain earlier in the session.

     
     

    1 of 2

    Comment ()
  • Essilor and Luxottica remain the best performers on the Stoxx 600 index today, following details of their merger deal.

    On the flipside, Technicolor, Ecot and Fiat Chrysler are trailing at the bottom of the index.

     
     

    1 of 2

    Comment ()
  • Julia is currently sitting down with Henrique Meirelles, finance minister of Brazil. You can see that interview in our afternoon special from 2:30 p.m. GMT/ 3:30 pm CET.


    Comment ()
  • This transcript shows part of an interview between President-elect Donald Trump and Michael Gove. 

    Gove is a Brexit supporting MP who also commands a salary by writing a column in Rupert Murdoch's organ, The Times. He was sacked by U.K. Prime Minister Theresa May, shortly after she assumed power.

    It appears Trump is promising a trade deal with Britain. You may recall President Obama said the U.K. would be a the the back of the queue in any trade deals with the U.S..


    Comment ()
  • The concert is scheduled from 4 to 6 p.m. a day before the inauguration.  Trump's calling it the 'Make America Great Again' welcome concert.


    Comment ()
  • German autos are struggling in European session following the tax threat from Donald Trump. As a reminder he is promising a hefty tax on auto firms that build in Mexico and import in to the United States.



    Comment ()
  • Scottish newspaper trolls Trump inauguration as ‘Twilight Zone’ revival

    CNBCA Scottish newspaper has teased the inauguration of President-elect Donald Trump by publishing a spoof TV listing.
    Comment ()
  • The German Finance Minister Wolfgang Schauble has added his voice to the debate about taxes on imported autos. 

    He has told the Wall Street Journal that protectionism is "always damaging in the long term".

    Schauble: prefers free trade to protectionism 

    Comment ()
  • The FTSE is the only major market in Europe keeping its head above water. That seen as a reflection of weaker sterling. (Many companies on the London listed market earn heavily in dollars or other currencies).



    For the United States it is Martin Luther King day, so U.S. markets are closed. 

    On Friday we saw the following:

    • The NASDAQ closed up 0.48% at 5574.12 at a new record close after hitting a new intra-day all-time high of 5,584.26 (its 6th record close of 2017)
    • The Dow closed down -0.03 percent. On a weekly basis the index was down -0.39 percent
    • The S&P 500 finished the day up 0.18 percent. Since The election the S&P is up 6.3 percent.
    Comment ()
  • A thought-provoking statistic. Find out who the eight richest are here.


    Comment ()


  • On the festival organizers Facebook website, a statement has been posted with more details:

    It is with great sadness to share that police have confirmed reports of a lone shooter outside the Blue Parrot nightclub in Playa Del Carmen earlier today, which resulted in four fatalities and twelve injured. The violence began on 12th street in front of the club and three members of the BPM security team were among those whose lives were lost while trying to protect patrons inside the venue.


    Comment ()
Powered by ScribbleLive Content Marketing Software Platform