World Markets Live - January 17 - CNBC Live Events

CNBC Live Events

World Markets Live - January 17

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

    Sir Mike Rake, chairman of BT, discusses Brexit and the challenges of leaving the European Union.

    Even the Leave group were very clear that we’d have a significant period of adjustment to our economy, to 40 years of integration with Europe, to supply chains, the need to develop new trade arrangements around the world.

    Obviously this is going to take time and have an impact. It will give us some flexibility on industrial policy and industrial strategy. The state aid rules won’t apply to the same extent and we’re going to have to be very fast on our feet to deal with some of the issues that are going to arise from the complexity of separation.

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    Sir Mike Rake, chairman of BT, says it is absolutely clear the U.K. will not remain in the single market. 

    It gives you the option to remain in the customs union but that restricts some of your ability to do other trade treaties, so that’s what I think is still being looked at. Can you be partially in the customs union or not? But I think there are some benefits to that, at least in a transitional period.
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    Gold is up almost 1 percent today. Concerns about Brexit ahead of Theresa May's speech later today are pushing investors towards safe havens, which helps gold prices.

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    President-elect Donald Trump brings a new degree of uncertainty to the I-T sector, especially for Indian tech giant Infosys. The U.S. is the company's largest market. 

    Vishal Sikka, CEO, Infosys joins us live to discuss more:
    My sense is that President-elect himself is an entrepreneur and a business man and I expect the government to be an innovation friendly and business friendly. As long as we focus on innovation and business we will be okay

    We do about 62 percent of our business with the US and we do expect an impact on our visa policy and that could have a short term impact. In the long term, looking at what is going on around us in terms of digitization and artificial intelligence, if we look at delivering value to our customers.

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    Russia's foreign minister welcomes Donald Trump's desire to make fighting international terrorism a priority. 

    Lavrov says he hopes Russia and Trump can cooperate more effectively on Syria, and thinks it is right to invite the Trump administration to the upcoming Syria peace talks, Reuters reports.

    Lavrov also warned that the deployment of NATO troops to Baltic countries is a bad idea.
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    These are the top headlines this morning following the market open.

    • U.K. prime minister Theresa May steals the headlines as she prepares to deliver her Hard Brexit plan, but Chinese president Xi Jinping is the star of the show in Davos, where he is set to defend globalisation.
    • Big business is not innocent. The bosses of Alphabet, Credit Suisse and WPP tell CNBC globalisation must work for everyone, amid a rise in inequality.
    • On the rocks.  Mediaset shares slide after reports surface that Italian regulators could block a potential takeover by Vivendi.
    • Revved up. Shares of Rolls-Royce fly after the engine maker upgrades its 2016 profit and settles a long-standing bribery probe for £671 million.
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    Deutsche Bank CEO John Cryan says low interest rates have been tough for banks and central bank bond buying has distorted the market, Dow Jones reports.

    Cryan says banks didn't apply common sense in the past, and "too big to fail" banks should be described as "too complicated to manage properly."

    Speaking at the World Economic Forum in Davos, Cryan also talked about algorithms. He says the more complex they get the less safe they come, which is why we "absolutely need humans."
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    Andrey Guryev, CEO, PhosAgro joins us live from Davos to discuss the agriculture market:

    2017 should be better than 2016. I have a clear expectation for that. Today all the prices for phosphate and nitrogen production are based on the cash cost production in China. Today China is the largest producer of all fertilizer.

    We reduced import duties in Brazil, also in US. Next year we will produce a new product for the United States.

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    A mixed morning for European markets, with most of the major European bourses in the red, although the FTSE MIB, Italy's stock index, is making gains.

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    Gambia's ministers for finance, foreign affairs, trade and fisheries have resigned from President Jammeh's government.

    This according to Reuters citing ministry sources.
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    Tom Finke, CEO of Barings, talks about the changes occurring within the asset management industry.

    Certainly Brexit is a change for a lot of asset managers like ourselves which have a big presence in London. Fortunately for us, for years we’ve taken a European view, so on the margin it’s not a big shift for us: we already have funds based in Ireland and on the continent.

    The bigger issue for us is how we’re seeing asset management transform. Yes, passives are making it different for people, but actives have their place, but how do you do the business you’ve been doing for year, but more efficiently?

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    Standard Chartered rises 6 pct to levels not seen since August 2015 after BAML upgrades to "buy" from "hold"  

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    According to Tom Finke, CEO of asset manager Barings, Brexit is not likely to cause a mass exodus of companies, but other factors will affect jobs.

    There might be certain jobs on the margin that go. I think the real issue for cities, and we see this in London and New York, certain jobs will move out because of technology, or the cost of living which is so high in these markets. Certain jobs don’t pay enough to sustain a lifestyle.

    by luke.graham edited by Spriha Srivastava 1/17/2017 8:56:18 AM
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    Britain will not seek a Brexit deal that leaves it "half in, half out" of the European Union, Prime Minister Theresa May will say on Tuesday, according to her office, in a speech setting out her 12 priorities for upcoming divorce talks with the bloc.

    Those priorities will include leaving the European Union's single market and regaining full control of Britain's borders, several newspapers reported, reinforcing investor fears of a 'Hard Brexit' which has pushed the pound to some of the lowest levels against the U.S. dollar seen in more than three decades.

    We will be bringing you live coverage of the speech as well as views on Brexit and President-elect Donald Trump from leaders across the world as they gather at the World Economic Forum in Davos. Stay tuned!
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    Here are your top headlines at this hour:

    • No 'half in, half out' deal! Theresa May will confirm the UK plans to leave the EU's single market in a highly-anticipated Brexit speech.
    • The star of the show. Xi Jinping will be the headline act here in Davos, where the Chinese president is expected to defend globalisation in a swipe at U.S. protectionism.
    • Business leaders in Davos brace for a new world order under Donald Trump, but the boss of WPP tells us it's a 'win some, lose some' situation.
    • Big business is not innocent. The bosses of Alphabet, Credit Suisse and WPP tell CNBC globalisation must work for everyone, amid a rise in inequality
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    Here are some of the highlights happening around Davos.

    • UBS Chairman Axel Weber says he does not expect the ECB or BOJ to join the Federal Reserve in pushing up interest rates any time soon.
    • The SNB's Thomas Jordan says normalisation of monetary policy in the U.S. is positive and he is not worried about divergence with Europe.
    • Dalian Wanda's chairman Wang Jianlin warns that rising tension between China and the U.S. will affect trade, but adds that he believes the U.S. will keep the door open for investment.
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    Shares in the world's largest cement company Lafargeholcim rallied in the wake of Donald Trump's election victory amid hopes the president-elect would launch a massive infrastructure programme once in office. 

    Eric Olsen, CEO, LafargeHolcim joins us live from Davos:
    We believe for many years that U.S.needs a significant boost in infrastructure. If you look at the status of bridges, road and core infrastructure in the U.S. that needs real investment.

    We need to get carbon pricing mechanism right and not distort trade. The other is governments have tremendous spending over infrastructure spending and they could be more thoughtful in working closely in early stages in designing if it is sustainable.

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    Donald Trump's advisor Anthony Scaramucci is at Davos. He says the incoming administration wants an independent Federal Reserve, which has served the U.S. well, according to Reuters.

    Scaramucci did say there is a need to be careful about the rising dollar. 

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    Saudi Aramco CEO speaking at World Economic Forum in Davos. He says current Saudi oil production stands at 12.5 million barrels per day. He says renewable power and electric cars won't make for fossil fuels. 

    Oil, gas will remain dominant for decades in energy markets.
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    Sterling is up 1 percent on day at $1.2166. This as markets wait for Prime Minister Theresa May's kay speech laying down a Brexit roadmap:

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    Dmitry Kostygin, chairman of Ulmart, says the thawing of relations between Russia and the U.S. is “absolutely” good for his business.

    We see that there was quite a dramatic increase in the stock exchanges indexes in Russia in the last year. So like 80 percent up, some companies 100 percent up, and so the inflows of capital are quite positive and we see that IPOs are more and more discussed and being proposed, so life is quite back to normal.

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    IEA's Birol says if oil investments don't recover the world will see a big gap in supply within 2-3 years. That's according to Reuters.
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    Sterling hits day's high of $1.2187 after UK inflation data. The pound is also up half a percent on day at 87.59 pence per euro after higher than expected inflation numbers. That's according to Reuters.
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    U.K. December inflation data is out.

    Producer output prices rose 0.1 percent month on month and 2.7 percent year on year, under expectations, but still the highest year on year rate since March 2012.

    The consumer price index grew 0.5 percent month on month in December and 1.6 percent year on year, beating expectations. This was the highest year on year rate since July 2014, according to the Office for National Statistics.
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    John Studzinski, Vice-Chairman, Blackstone joins us live from Davos to discuss the top themes at World Economic Forum:
    I think the new trend here is what I characterize as a new world order or a new world disorder. It is all changed in terms of global leadership. President Xi kicking off the forum is a very strong statement about China's commitment to long term role, a serious role on the world stage.

    You talk about free trade, protectionism, you are also going to talk about climate control because China is going to be a poster child for major environmental policies. The Chinese have had to deal with the environment and they take it very seriously and i think they are going to emerge as world leaders.

    Comment ()
    Sterling extends today's gains against the dollar, rising 1 percent following the release of U.K. inflation data.

    Over 7 days, the U.K. currency is flat against the dollar, with today's gains paring losses that occurred over the weekend.

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    Takehiko Nakao, President, Asian Development Bank joins us live from Davos to discuss China's growing influence:

    Free trade is one of the most important reasons and I think China is already growing at the pace of 6.4 percent, that would be our estimate for this year.

    We must still see what is the outcome of policies of the President Trump's inaugurated. I hope United States will protect free trade because it is also in the interest of America overall.
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    You can follow President Xi's plenary speech at the World Economic Forum, right here on CNBC, from 11:00 CET. 

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    Sterling is looking stronger today, rising against the euro and dollar, and paring earlier losses to the yen.

    The pound was boosted by good inflation data released earlier today. Meanwhile, investors are looking ahead to Theresa May's speech on Brexit for more clues about how the U.K. will leave the European Union.

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    Oil prices are up strongly at the mid-morning mark. Earlier, prices were more mixed, as investors were concerned about rising U.S. production and fears that OPEC members would not stick to cuts.

    Now, oil prices are up more than 1 percent.

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    Frédéric Oudéa, Chief Executive Officer of Société Générale, says he does not expect more countries to leave the European Union.

    We need to provide better answers, more growth, more jobs, more security. Personally I think we can do that better by being together, than rather going on our own and having an even more fragmented European landscape.

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    Chinese Prsident Xi Jinping is taking to the stage to deliver a keynote speech at Davos.
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    Chinese President Xi Jinping will defend globalisation in the face of mounting public hostility in the West on Tuesday in a speech at the World Economic Forum that will underline Beijing's growing global role. That's according to Reuters.

    Xi's appearance, a first for a Chinese leader at the annual meeting of political leaders, CEOs and bankers in Davos, comes as the part the United States plays as a force for multilateral cooperation on issues like trade and climate change is in doubt following the election of Donald Trump.

    We will be live blogging President Xi's speech. Stay tuned!
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    Chinese President Xi Jinping is speaking at the World Economic Forum in Davos. Xi's appearance, a first for a Chinese leader at the annual meeting of political leaders.

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    China’s president Xi Jinping says he is delighted to come to Davos. 

    People from around the world come here to exchange ideas and insights which will broaden their vision. This makes the WEF a cost effective brainstorming event, which I would like to all Schwab economics.

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    Chinese president Xi says today we live in a world of contradictions:

    International financial crisis was result of excessive pursuit of profits not globalization. Many of the problems in the world are not caused by economic globalization.
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    The Chinese president is speaking on the topic of globalization.

    The point I want to make is that many of the problems troubling the world are not caused by economic globalisation, for instance the refugee waves from the Middle East and North Africa have become a global concern. Several million people have been displaced and some small children lost their lives while crossing the rough sea. This is indeed heart breaking for us. 

    It is war, conflict and regional turbulence that have caused this problem and the solution to this problem lies in making peace, promoting reconciliation and restoring stability.
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    Chinese President Xi says in a philosophical sense nothing is perfect in the world:

    It is true that economic globalization has created new problems. But this is no justification to write off economic globalization altogether. Rather we should adapt to economic globalization, cushion its negative impact and deliver its benefits to all countries.

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    President Xi compares the global economy to an ocean in which countries must learn to swim.

    Whether you like it or not, the global economy is the big ocean you cannot escape from. Any attempt to cut off flows of capital, technologies, products, industries and people between economies and channel waters in the ocean into isolated lakes and creeks. This is simply not possible and indeed it runs counter to the historical trend.
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    Chinese President Xi says it is important for world leaders to act responsibly:

    We should act proactively and manage economic globalization properly and rebalance the process of economic globalization. We follow the general trend and embark on the right pathway of economic globalization. This is a responsibility that leaders of our times must take on. The people around the world expect nothing less from us. 

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    China's president is laying out what he believes are the causes for the widening disparity between countries and members of society.

    The global economy has remained sluggish for quite some time now. The gap between the poor and the rich and between the south and north is widening. The root cause is three critical issues in the economic sphere have not been effectively addressed.

    These issues include a lack of robust driving force to sustain global growth. Inadequate governance is also a problem, as it is not representative or inclusive enough.
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    President Xi says the global finance markets need to be more resilient against risk:

    The global financial governance fails to meet the new requirements and is unable to effectively resolve problems such as frequent volatility and international financial markets and build of asset bubbles.

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    President Xi says poverty is the biggest challenge facing the global economy.

    Over 700 million people in the world still live in extreme poverty. For many families to have warm houses enough food and secure jobs is still a distant dream. This is the biggest challenge facing the world today. It is also what is behind the social turmoil in some countries.

    All this shows that there are indeed problems with global growth, governance and development problems and these must be addressed.
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    The Chinese yuan is trading 0.6 percent higher against the dollar today but is down more than 4 percent over the past 12 months:

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    President Xi is now laying out some of his suggestions for fixing the world economy.

    When cultivating new industries and new forms and models of business we should always find ways to create new jobs to restore confidence and hope to all peoples.

    Second, we should pursue a well-coordinated and interconnected approach to develop a model of open and real cooperation.
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