World Markets Live - January 16 - CNBC Live Events
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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.

  • Sterling slumped heavily in today's session as soon as New Zealand's foreign exchange trading became open for business on Monday.

    The currency took another leg down as investors assessed recent comments to mean that the United Kingdom will make little or no attempt to remain within the European single market or customs union.


    Theresa May is to give a speech tomorrow at Lancaster House outlining her Brexit vision. Little details was included in a pre-speech briefing to news organisations. 

    The Prime Minister is expected to say the following within the speech:

    “One of the reasons that Britain’s democracy has been such a success for so many years is that the strength of our identity as one nation, the respect we show to one another as fellow citizens, and the importance we attach to our institutions means that when a vote has been held we all respect the result. The victors have the responsibility to act magnanimously. The losers have the responsibility to respect the legitimacy of the result. And the country comes together. “And that is what we are seeing today. The overwhelming majority of people – however they voted – say we need to get on and make Brexit happen. Business isn’t calling to reverse the result, but planning to make a success of it. And the House of Commons has voted overwhelmingly for us to get on with it too.

    “So the country is coming together. Now we need to put an end to the division and the language associated with it – Leaver and Remainer and all the accompanying insults – and unite to make a success of Brexit and build a truly Global Britain.


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  • The U.S. President-elect is celebrating Martin Luther King Jr.


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  • Global uncertainty as a result of a looming Donald Trump presidency has caused the International Monetary Fund (IMF) to leave its worldwide growth forecasts unchanged for 2016 and 2017.

    In its World Economic Outlook (WEO) report, published Monday, the IMF projected global growth at 3.1 percent in 2016 and 3.4 percent in 2017 – both unchanged from its October forecasts. 

    The IMF also predicted an uptick in global economic activity in the years ahead which could help worldwide growth reach 3.6 percent in 2018.

    The IMF cited the uncertainty of a new U.S. administration as reason to leave forecasts unchanged in January and instead look to be more specific in April as Trump’s policies begin to be rolled out.
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  • Some of the world’s richest leaders will descend upon luxury resort Davos in Switzerland this week to attend the annual World Economic Forum..

    Inequality is likely to form a large part of discussions at the event. Security is tight, but an early protest is in place.

    Dissent at Davos 

    If you can't make out the writing it says "Some people are so poor all they have is money" and "Wipe out WEF".

    This photo is courtesy of CNBC's Matt Clinch.
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  • Germany's Economy Minister Sigmar Gabriel has said that instead of trying to penalize German carmakers, the U.S. should instead respond by building better cars.

    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. 

    German carmakers have invested heavily in factories in Mexico, as they look to export smaller vehicles to the U.S. market.
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  • Just ten minutes until we go live from Davos. Make a pot of tea and settle in, secure in the knowledge that you are much warmer than the CNBC team.


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  • We are live from Davos! Our headlines at the moment:

    • Sterling is pounded to a 3-month low 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. 
    • Italian banks slide after DBRS cuts Italy's credit rating to BBB, warning the banking sector remains weak amid a fragile economy. 
    • The gloves come off! China warns of strong action if Donald Trump continues to question the "One China" policy.
    • The Brazilian Finance Minister says he doesn't think a trade war between the U.S. and China is in the cards -- but admits the U.S. President-elect is a hard man to read.
    • Seeing eye-to-eye. Luxottica and Essilor agree on a 46 billion euro merger to create an eyewear giant- in what's one of Europe's biggest cross-border deals...Shares in both retailers soar! 
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  • Responsive and responsible leadership is the theme of the World Economic Forum this year, amid a backdrop of political upheavals that have shaken the establishment. 

    And in the week of his inauguration - Donald Trump's Presidency will frame the agenda of this year's meeting.

    Julia spoke to Brazilian Finance Minister Henrique Meirelles, and began by asking him about his impression of the U.S. President-elect.


    Meirelles said it was hard to say if anyone understood Donald Trump but it was pretty clear that markets have appreciated his pro-business outlook.

    Brazil's Finance Minister said he himself is no fan of protectionism.
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  • Italy's Luxottica and France's Essilor will create one of the world's largest eyewear companies after agreeing to a 46 billion euro tie-up. 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. 


    Burberry has issued a start date for its incoming chief executive. Marco Gobbetti, who joins the brand from Celine, will take the top job on July 5th. Current CEO Christopher Bailey will become President and Chief Creative Officer. 

    Hugo Boss 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. 

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  • DBRS has cut Italy's credit rating from A to triple-B over concerns surrounding the country's banking sector and a 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. 

    Italian banks struggling today.


    Fergus McCormick, Co-Head of Sovereign Ratings & Chief Economist at DBRS is on the phone and says this was a long term view and the discomfort began to grow in August last year.


    McCormick says Italy's banking sector is a victim of low economic growth as well as political uncertainty and therefore it is hard to see if the Italian banking system is at its lowest point.

    Unlike Ireland and unlike Spain, Italy has not taken a systemic approach to solving its problem.

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  • Chem China and Syngenta are still awaiting regulatory approval in order to progress with their proposed 43 billion dollar tie-up. 

    Erik Fyrwald, CEO of Syngenta is on the platform in Davos with Carolin and asks if he is confident the deal will close.

    I am very confident we can finish the deal. We have 13 approvals around the world. We are working well with EU and US regulators and expect to be finished in the not too distant future.

    Erik Fyrwald, CEO of Syngenta 

    Fyrwald says the U.S. needs to remain engaged in the global trade scene. 
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  • The CEO of Philips has said it's difficult to predict how the Trump administration will impact healthcare technology. This as the president-elect plans to replace Obamacare and shake up the pharma industry.

    After a quick turnaround Julia and Carolin are now  joined by Frans Van Houten, CEO of Philips.
     

    He says globally there is growing demand for health technology but the situation regarding Obamacare is uncertain.

    He says the United States remains a great healthcare country and whatever turbulence and uncertainty currently exists will soon pass.

    On pricing, he says it is an important theme for Philips to come up with affordable solutions and not just in the United States where the cost of medicines is currently a hot topic.

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  • 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". Trump also described the European Union as simply a vehicle for Germany, predicting that more countries will follow the U.K. out of the bloc. 

     At a news conference in Berlin, Merkel responded to Trump's remarks. 

    by david.reid

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  • The Kremlin says it is too early to respond to an offer from President-elect Donald Trump to reach a nuclear arms reduction deal in exchange for the removal of sanctions against Russia. 

    Trump made the suggestion during an interview with The Times, but a Russian government spokesperson said no such talks were underway.  

    Kirill Dmitriev, CEO at Russian sovereign wealth fund  RDIF is on the Davos platform with Julia and Carolin.

    He says Russia is doing pretty well despite sanctions and a nuclear agreement would be a separate matter.

    He says he thinks Russia and the U.S. are likely to come to an agreement on nuclear arms.


    Dmitriev said on the discussions over Russian hacking and the U.S. election that the press has talked too much on it and it is time to move on.


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  • European markets are in a sell-mode today. Just one hour left in the trading day.



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  • 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. 

    Chinese President Xi Jinping has arrived in Bern, where he is meeting with Swiss officials before traveling to Davos for the World Economic Forum. 

    Xi will be the first Chinese president to attend the gathering, and will deliver the plenary speech tomorrow. 
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  • Mark Weinberger, CEO of EY is part of Donald Trump's economic advisory team. 

    Mark Weinberger, CEO of EY 

    Weinberger says Trump won't earn much of a honeymoon period but the wheels of legislation in Washington "move a lot slower than Donald Trump talks".

    He says putting pressure on business won't work from the Trump administration and he hopes to see more collaboration between politicians and executives.


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  • Economic activity is projected to pick up the pace in 2017, especially in emerging markets and developing economies. 

    That's according to the World economic outlook from the IMF. But -- the report warns there is a wide array of possible outcomes due to uncertainty around the policy of the incoming U.S. administration.

    Joining us now from Washington is Maury Obstfeld, Chief Economist at the IMF.

    He says the risk of breakdown in trade policy is very real but this is not built in to base line IMF forecasts.

    Obstfeld: Second half 2016 shows a global growth uptick


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  • Checking in on the hotel business  now.

    Richard Solomons, CEO at IHG say she is basically positive about business because there is a rising year-on year demand for travel and his firm is well placed to take advantage of this.


    he says it is important to note that most business is domestic and that politics, is therefore unlikely to affect his business negatively.

    Richard Solomons, CEO at IHG  

    In recent months Marriott surpassed IHG as the company offering the most rooms worldwide but Solomons says this isn't too relevant, suggesting it is a metric that few customers care about.
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  • Global uncertainty as a result of a looming Donald Trump presidency has caused the International Monetary Fund (IMF) to leave its worldwide growth forecasts unchanged for 2016 and 2017.

    In its World Economic Outlook (WEO) report, published Monday, the IMF projected global growth at 3.1 percent in 2016 and 3.4 percent in 2017 – both unchanged from its October forecasts.

    The IMF also predicted an uptick in global economic activity in the years ahead which could help worldwide growth reach 3.6 percent in 2018.

    The IMF cited the uncertainty of a new U.S. administration as reason to leave forecasts unchanged in January and instead look to be more specific in April as Trump’s policies begin to be rolled out.
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  • Ian Bremmer is gauging the atmosphere and says Europeans are exhibiting a little bit of gloom.


    But is the gloom misplaced?


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  • Our headlines this afternoon:

    • Sterling hits a 3-month low 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. 
    • Italian banks slide after DBRS cuts Italy's credit rating to BBB, warning the banking sector remains weak amid a fragile economy. 
    • China warns of strong action if Donald Trump continues to question the "One China" policy.
    • The Brazilian Finance Minister says he doesn't think a trade war between the U.S. and China is in the cards .
    • And Luxottica and Essilor agree on a 46 billion euro merger to create an eyewear giant- in what's one of Europe's biggest cross-border deals...Shares in both retailers soar! 

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  • The EU has said it will not move its mission building to Jerusalem should teh U.S> embassy move there. 

    The European Union has warned that Donald Trump should reflect long and hard on any such move as it could cost lives in the region.

    Trump has suggested moving the embassy from Tel Aviv, a move that would anger Palestinians. 

    An editorial in the Jerusalem Post stated that  by moving the embassy, the United States risks losing any hope to portray itself an as honest broker or negotiator between Israel and Palestinians

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  • And the markets close in Europe. 


    For the FTSE 100 in London it marked the first negative close in almost 3 weeks.


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  • And that is where we will close the blog. 

    It will open tomorrow a little earlier than usual at 5:30 a.m to account for our coverage in Davos.

    be sure to join us on another big day of guest from Switzerland as well as  the big speech from U.K. Prime Minister Theresa May.

    Will sterling plunge again? Its been a bad 12 months for the pound.


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