World Markets Live - January 18 - CNBC Live Events
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CNBC Live Events

World Markets Live - January 18

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. It's mid-week already and it is also day two of Davos. We have a packed day ahead for you with a very impressive list of guests to keep you going through the day. Our first guest is C P Gurnani, CEO of Tech Mahindra coming up in just about 5 minutes. Stay tuned!
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  • Paul Rawlinson, Chairman of Baker & McKenzie is our first guest this morning from Davos and speaks to us about M&A outlook:

    We are pretty optimistic about Asia. We talk about being confident of all regions but Asia is still the powerhouse for growth. Obviously China, we heard about their vision for globalization. We are very excited about China and business coming out of China.


    The M&A report globally is positive and negative. We have a pick up in 2017 and then much better in 2018. We see drop in IPOs in the UK but it will pick up but overall we see a drop in M&A activities in the UK.

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  • C P Gurnani, CEO of Tech Mahindra joins us live to discuss migration of IT professionals from India to the U.S. and how a restriction on H1B visas could impact the movement:

    There is a shortage of high skilled workers in United States and all over the world. The world is being disrupted very aggressively by the technology and in that sector the real difference is people so my belief is that Trump administration is against displacing low-skilled workers but I hope is that Tech Mahindra is able to convey what we bring to the table is high-skilled people and we invest in the local economy.

    We are constantly diversifying. We are down to 54 percent in the US and the rest it is coming from the rest of the world.


    The point is that there is no wall stopping conversation today and digitization talks exactly about the same because trade barriers to any of these conversation so these will not stop digitization as well.

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  • The U.S dollar fell to its lowest in a month after President-elect Donald Trump said the currency is "too strong". Here's a look at the performance of the dollar over the past 30 days:

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  • Here are your top headlines at this hour:

    • Sterling soars - posting its biggest one-day percentage gain in two decades as the market cheers the clarity of Theresa May's hard Brexit plan. 
    • The Greenback is killing us! Donald Trump talks down the dollar, saying it's hurting American competitiveness and raising fears of a currency war. 
    • The Trump effect. Bayer becomes the latest company to commit capital and jobs to the United States after meeting the President-elect to discuss the Monsanto deal. 
    • Finalising the fine. The Department of Justice accepts Deutsche Bank's 7.2 billion dollar settlement, sending U.S.-listed shares down over 3 percent. 
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  • Coming up on CNBC: from policy politics to the C-suite, we bring you the best of the boardroom with Spain's economy minister, the governor of the Bank of Japan and the CEOs of Deutsche Boerse and Novartis to name just a few. 

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  • The UK's biggest business association welcomed the clarity from the government. We spoke to the CBI's Director General, Carolyn Fairbairn as well as other Davos participants about their reaction to the speech.

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  • Here is our instant write up on our interview with CP Gurnani, CEO of Tech Mahindra

    American consumers will pay for change in visa laws, says major Indian outsourcing firm

    CNBCThere is a shortage of technical high-skilled workers in the United States, the CEO of Indian outsourcing firm has told CNBC.
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  • U.S. equities closed lower, with financials leading the losses. Concerns around Donald Trump's policies overshadowed a better-than-expected set of earnings from Morgan Stanley. 

    Investor attention turns to Goldman Sachs, which is expected to post a 6 percent increase in fourth quarter revenues and an uptick in profit. Shares of the Wall Street giant are near all-time highs. 

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  • Deutsche Bank CEO says expects DOJ civil monetary penalty to have negative impact on Q4 pretax results of nearly $1.2 billion. Cryan says still too early to talk of having drawn a line under all matters. That's according to Reuters.
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  • ABB's orders took a hit from Brexit and the US elections last quarter. The Swiss group's CEO has said he doesn't see global markets recovering fully this year.

    Ulrich Spiesshofer, CEO, ABB joins us live from Davos:
    There is still a lot of uncertainty. We don't know how Brexit comes out. We look forward to get the overall programme of the U.S. governments. 


    People are just uncertain about the conditions that the ruling will be all about. A lot of our customers said the project is not over but we are delaying the project for a little bit given what we do in infrastructure. We are heavily exposed to capex.
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  • Chinese President Xi Jinping's speech passionately defending globalisation was well-received by delegates here at Davos. Sweden's former Prime Minister, Carl Bildt, said Xi was "aiming to fill the global leadership vaccum - and doing it with some success." Xi pushed back against protectionism in an apparent swipe at Donald Trump

    Pursuing protectionism is just like locking oneself in a dark room. While wind and rain are kept outside, so are light and air. No one will emerge a winner a trade war.


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  • Julia asked the CEO of Generali, Philippe Donnet, if he found it unusual to hear a Chinese leader talk positively about globalisation

    It is kind of strange situation definitely but I think it is very good. We need to look at positive things. It is great to look at Chinese President talk about how positive globalization is. It was not possible a few years ago.


    They want to strengthen their position in the world and it is fair because they have a strong economy. What he said about the planet is a very good thing.

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  • Hadley spoke to H.R.H. Prince Turki Al Faisal Al Saud and asked what he would tell people looking to invest in Iran.

    For those who are seeking to invest in Iran I say good luck to them. They have to deal with the IRGC, the revolutionary guard. They have to deal with no laws to protect them. They have to deal with insurance companies that are not going to protect them. So good luck to them.


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  • Here's a quick look at the top news headlines this morning with Uptin:


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  • Telenor has announced plans to reorder its management structure into 4 geographical clusters - Scandinavia, Centre and Eastern Europe, Emerging Asia, and Mature Asia. Nine members of its executive management will step down as part of the reshuffle.  

    Sigve Brekke, CEO at Telenor joins us live from Davos to discuss the trends in tech sector:
    Our customers are demanding more and more data. That is not just in the western part of the world but also in Asia and emerging markets. We are trying our best to invest in a network for data.


    Internet is a platform to deliver all kinds of services, educational services, healthcare. It is all about inclusion and that is the argument we are going to have with the governments as well.

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  • The 'fourth industrial revolution' was the theme of the Davos Economic Forum in 2016. But the impact of disruptive technologies remains a major talking point at Davos 2017. We've been speaking to business leaders at the Forum about how they are using technology to boost their competitive advantage.

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  • Here are your top headlines:

    • Deutsche Bank's CEO says the DOJ fine will hit pre-tax profit by 1.2 billion dollars in the fourth quarter after the U.S. regulator accepts the lender's final settlement. 
    • Sterling soars - posting its biggest one-day percentage gain in two decades as the market cheers the clarity of Theresa May's hard brexit plan. 
    • The Greenback is killing us! Donald Trump talks down the dollar, saying it's hurting American competitiveness and raising fears of a currency war. 
    • The CEO of ABB tells CNBC markets are characterized by a high level of uncertainty, as Brexit is making clients hold back on orders.
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  • The mobile network EE has received a fine of £2.7 million from OFCOM for overcharging customers.

    EE, a division of BT Group, had made billing mistakes and overcharged almost 40,000 customers a total of £250,000.

    OFCOM, the U.K. telecom regulator, says the fine must be paid within 20 working days.

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  • UBS has cut its rating on Maersk from buy to neutral, while raising its price target to 12 thousand 300 danish krone from 11 thousand 600 krone. 

    Søren Skou, CEO at Maersk Group joins us live to discuss more:
    We still see opportunities for growth in our oil business. We plan to focus on our oil company more on North Sea with a less diversity of graphic footprints we have today. We see more opportunities in North Sea


    We were surprised by that global trade has not grown as much as it did 5 years ago. Before financial crisis global trade grew at 8-10 percent now we see global GDP at 2 percent.

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  • President-elect Donald Trump's comments suggesting the dollar is "too strong" has sent the index tumbling to its lowest level in more than a month. The dollar has since recovered some of that weakness in Asian trade. Trump's remarks signal a shift from bipartisan tradition in the United States where Presidents leave commentary about the currency to the US Treasury Department. 

    Adding to the dollar's weakness was sterling strength, which after Theresa May's speech in which she outlined her plan for Brexit surged 3 percent -- the biggest one day-climb since 1998. 

    We will be speaking with a number of leaders at the World Economic Forum in Davos on markets, Trump and the global economy. Stay tuned!
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  • European bourses are seen higher this morning after U.K. Prime Minister Theresa May provided further clarity on her aims for the upcoming Brexit talks.

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  • Antoine Frerot, CEO of Veolia, joins us in Davos to discuss water security and whether or not enough money is being spent on infrastructure.

    About water, we have three big issues. The first is access to water, safe water, for more developing countries. The second issue is about pollution; so we need to invest more to treat water pollution, mainly in emerging countries, but also developed countries. The last issue is about scarcity, there we have to invest much more to create alternative sources.


    Water management is clearly a field where cooperation between the public sector and private sector should be increased.
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  • Former U.S. President George Herbert Walker Bush hospitalized in Houston. That's according to Reuters citing local media.
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  • Here are your top headlines at this hour:

    • Deutsche Bank's CEO says the DOJ fine will hit pre-tax profit by $1.2 billion in the fourth quarter after the U.S. regulator accepts the lender's final settlement. 
    • Sterling soars - posting its biggest one-day percentage gain in two decades as the market cheers the clarity of Theresa May's hard brexit plan. 
    • The Greenback is killing us! Donald Trump talks down the dollar, saying it's hurting American competitiveness and raising fears of a currency war. 
    • The CEO of ABB tells CNBC markets are characterized by a high level of uncertainty, as Brexit is making clients hold back on orders. 

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  • Italian Conservative MEP Antonio Tajani has been elected President of the European Parliament -- giving the European People's Party control of the European Parliament, Commission, and Council. The 63 -year-old is a former EU Commissioner and has been spokesman for Silvio Berlusconi.  

    Liberal candidate Guy Verhofstadt dropped out of the race, paving the way for Tajani's victory.


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  • The CEO of Russia's VTB Bank says the privatisation of a stake in Rosneft was paid for by foreign companies, but otherwsie decline to comment on VTB's involvement in the deal.

    This according to TASS, the Russian news agency.
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  • Spanish public debt fell by 4 point 8 billion euros in November according to the Bank of Spain. Meanwhile the European Commission has judged that Spain's budget meets EU targets, in a vote of confidence for the economy. 

    Spanish economy minister, Luis de Guindos joins us live from Davos:
    The speech has had a little bit of clarity finally. The main point and the main element of discussion is how we are going to sever the links between UK and the rest of Europe. 


    For us, the UK is a very close country. It is probably our closest ally. If you look at trade, investments of Spanish corporations the UK is a big economy for Spain. The approach of the Spanish economy will be reasonable.
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  • Spanish economy minister, Luis de Guindos joins us live from Davos. He says UK and the EU will need to find a 'friendly divorce'

    We believe Madrid offers a lot of opportunities for banks. Brexit has been a decision taken by the UK. We fully respect. I regret Brexit but now we will have to find a friendly divorce.
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  • BlackRock has backed the proposed $28 billion tie-up between LSE and Deutsche Börse. The second-largest shareholder of both exchanges said that sceptics should consider the need for strong capital markets in Europe.  

    Carsten Kengeter, CEO of Deutsche Börse, explains from where the headaches to the deal are coming.

    We are taking everything in its stride. It is a sequential process, we are right now in the middle of the Brussels deliberations. It’s a strong competition analysis that goes on and that will take a number of weeks still and following that, because everyone who is approving or not this transaction wants to look at the facts, want to wait until the outcome of Brussels is secured.

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  • German Finance Minister Schaeuble preparing for continuation of Greece aid without IMF involvement if necessary. That's according to Reuters citing BILD newspaper.
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  • Carsten Kengeter, CEO of Deutsche Börse, discussed the importance of London as the financial capital of Europe.

    London has a history as a financial centre not only in Europe but worldwide. It’s a trade centre and there is a lot of infrastructure that has been built in London over time, not only banking but all the ancillary services as well.

    In times of political uncertainty where the future is unknowable, we must ensure the institutional design to link London to Europe and vice versa.
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  • European markets are now open for trading with Stoxx Europe 600 opening 0.06 percent higher   after U.K. Prime Minister Theresa May provided further clarity on her aims for the upcoming Brexit talks.

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  • Lots of green at the start of European markets. These are the sectors doing best and worst this morning. Technology is leading the pack.

     
     

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  • This is what the individual European markets look like this morning, with all the major indexes currently in the green.

    Click or tap on the arrows to switch charts. 

     
     

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  • Healthcare is one sector that has come under the spotlight since Donald Trump's election as President of the United States. Carolin has been speaking to a number of industry CEOs in Davos to get their take.

    Joe Jimenez, CEO, Novartis joins us live from Davos to discuss the trends in this sector:
    Pharma prices are only about 10-15 percent of the entire healthcare.. There is going to be downward pressure on prices. At Novartis, we started thinking of new pricing models so we started to think about moving to outcome-based approach.


    We spent 70 billion dollars in research and developments in the U.S. and we account for 4.5 million jobs in the industry. So if the President-elect is all about creating jobs in the U.S. then this is a sector we can grow in.
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  • These are the shares leading the Stoxx 600 higher and trailing at the bottom in opening trade.

    ASML is helping the tech sector to move higher, while Pearson is the worst performer after the firm warned on its profit outlook and said it would have to reset the dividend.  

     
     

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  • Shares in Education publisher Pearson tumbling after the company issued a profit warning in the face of slumping sales in its U.S. market. The company says it no longer expects to reach its operating profit goal for 2018. Pearson also indicated that it's looking to exit its 47 percent stake in the publisher Random House. 


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  • ING has outperformed many of its European peers. The stock has risen over 20 percent in the last 12 months amid its largest restructuring since the financial crisis.

    Ralph Hamers, CEO of ING, discusses the company’s ROE of around 10 percent and whether or not it can be higher.

    We all have to be realistic, things have really changed in the world and that the levels that we had before the crisis, touching 15 percent, I don’t think that’s reasonable to expect at this time. We are happy to be around 10 percent, because with the 10 percent, specifically with the Eurozone, we are outperforming most of our competitors.

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  • Ralph Hamers, CEO of ING, talks about transitioning to a digital banking model.

    In the markets in which we are a digital bank only, we are growing very fast. With that you can actually grow your top line by gaining market share. I’ve said before, in Germany we take 1,000 or 1,500 new clients a day. We’re beyond 8 million customers in Germany alone. 

    It can be done. If you have the right strategy you can actually grow in markets which don’t grow too fast.
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  • Deutsche Bank shares are lower this morning, down around 0.8 percent.

    The Department of Justice has agreed to a final settlement with the bank, but the CEO of Deutsche Bank said the fine would hit pre-tax profits by $1.2 billion.

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  • Valdis Dombrovskis, EU VP & Commissioner, Euro and Social dialogue, Financial stability, Financial services and capital markets union joins us live from Davos:

    Theresa May speech provides clarity as regards to UK's intention of Brexit. The EU's position was made very clear immediately after the Brexit vote that we will start any negotiations or any positioning once Article 50 is triggered. For us that will be the starting point.

    Our thinking is in general is that we are not going into pre negotiations before UK notifies its intention to leave.


    As regards to economic impact, we made some preliminary assessment and we see there is going to be negative impact for EU and UK.

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