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.
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Nouriel Roubini is one of few economists who predicted the housing bubble crash of 2007-2008.
Now he predicts choppy waters under a Trump presidency.Roubini's sense of doom is running high amid Trump's 'inconsistent' policy mix cnb.cx/2jw8n8d http://pbs.twimg.com/media/C2cwhYwXcAEkQ9P.jpg
11:21 AM - 18 Jan 2017- Reply
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A new OPEC report suggests the global oil market will see a 985,000 barrels per day surplus per day in 2017.
That is a reduction from the previous surplus of 1.24 million barrels per day.OPEC says production fell by 221,000 barrels per day in December. -
The U.S. Vice President Joe Biden is speaking at Davos.
He says Russia is the biggest threat to the liberal order and Moscow is trying to whittle away at the European Union.He says we should expect further attempts by Russia to meddle in the democratic process in forthcoming European elections. -
Carlos Ghosn, Chairman and CEO at Renault-Nissan Alliance is on set talking about Donald Trump an the auto sector.
I think it is fair to say that most car makers will be adding capacity in the United States.
Ghosn says Renault-Nissan is a t full capacity in North America but expects to add more once Trump's policies are better known.He says it would not be particularly prudent to build more capacity in Mexico right now.
Carlos Ghosn, Chairman and CEO, Renault-Nissan Alliance
Ghosn says the U.S. is a very profitable market and therefore it is important for his company to pay attention to the wants of the new administration. -
On emissions the Chairman and CEO at Renault-Nissan Alliance, Carlos Ghosn, says you must establish if cheating actually took place.
On a second point, he says car makers must ask how effective a diesel engine is, beyond the rules, in comparison to other methods of powering cars.Julia asks if the rules on emissions are clear to consumers and he says as long as the rules are clear we will be fine.We have to clarify the rules in function of the expectation of the consumer. To a point the rules were very specific. Today the rules change and we are now continuously adapting to them. So I think it is an ongoing process.
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Goldman Sachs has reported its fourth quarter earnings per share of $5.08 versus an expected $4.68.
That compares with $1.27 a year earlier. Revenue grew to $8.17 billion from $7.27 a year earlier.
Shares are down around 0.1 percent in pre-market trading.
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The European Union's commission president Jean-Claude Juncker has told reporters in Strasbourg that Brexit will be a "very, very, very, difficult negotiation".
Juncker said he called Theresa May last night and told her that the EU was not in a hostile mood. He said he welcomed a fair deal for Britain and Europe.
European Commission President Jean-Claude Juncker -
EARNINGS: Citigroup Q4 EPS $1 .14 vs. $1 .12 Est.; Q4 Revs. $17 .012B vs. $17 .304B Est. • $C : cnb.cx/RCwcav http://pbs.twimg.com/media/C2dHeG2XcAE5T0s.jpg
1:01 PM - 18 Jan 2017- Reply
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Just below expectations for then for Citi's fourth quarter.Pre-market trading shows a slight fall in share value.
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Fitch Ratings agency has described the Brexit timetable outlined by the U.K. government is "ambitious".
The agency welcomed increased clarity but warned that remaining uncertainty would weigh on the country's credit rating.Yesterday, Theresa May said she hoped to get a trade agreement during the two years of formal talks to leave Europe.Sterling has been the most obvious barometer of investor sentiment and is steeply down in trade today.
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Bank of Japan governor Haruhiko Kuroda has told CNBC he believes President-elect Donald Trump's policies will improve growth but warns his protectionist views are a concern.He says a U.S. tax cut coupled with fiscal stimulus will be grow the U.S. and in turn global economy.
Kuroda said he does not expect a trade war between the U.S. and China to occur and even if it did it would not benefit Japan.On the U.S. economy he doesn't see the dollar strengthening soon but if it did happen, he would expect that to be painful for emerging markets but not most countries in Asia or Europe. -
Kuroda says Trump's election could benefit the Japanese economy, especially in terms of inflation.
However the Japanese economy is already on track. It has grown 1.5 percent in the last fiscal year and we expect the same this year.
He repeats the prices are still very slowly moving in Japan and that the prospect of reducing stimulus is a long way off.Bank of Japan Governor: "It is too early to think about tapering or changing our monetary policy position." cnb.cx/2j8Pc0V #wef17 http://pbs.twimg.com/media/C2dNQfxWEAAoTch.jpg
1:26 PM - 18 Jan 2017- Reply
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The dollar is on the march rising to day highs against the euro and yen. This move bolstered by the 0.3 percent rise in U.S. consumer prices for December.
The increase was in line with expectations.
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Oil prices are lower today, with Brent down around a $1, going as low as $54.38.
Prices for the commodity have taken a hit on the outlook for U.S. oil production. OPEC upgraded its forecast of U.S. production to 230,000 barrels per day.
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Around half an hour to the open of U.S. markets, here's a look at the future values.
Markets look set to rise, as investors digest bank earnings from Citi and Goldman Sachs.
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The dollar is strengthening after yesterday's slump. The U.S. currency is up more than 1 percent against sterling.
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Facebook's Chief Operating Officer Sheryl Sandberg has told reporters that the company is working to take away incentives for people to post fake news.
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BREAKING: US industrial production grew 0.8 percent in Dec. vs estimate of 0.6 percent increase cnb.cx/2jwKrBL2:17 PM - 18 Jan 2017- Reply
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A date has been set for the Article 50 Brexit judgement by the Supreme Court..The decision will be handed down on Tuesday the 24th January.A s a reminder this is an appeal after a high court decision ruled that Article 50 must be invoked by parliament as a whole. -
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Yield on a 10-year Treasury note sitting around the same level it has done for a couple of weeks now.
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The poor will pay more says UBS.Inflation will likely increase in most developed economies in 2017. Price rises are concentrated in certain sectors, meaning equity markets may not be the best inflation hedge. Higher-income consumers will generally experience lower inflation than most.
- Paul Donovan, Global Chief Economist at UBS Wealth Management -
Banca Monte dei Paschi di Siena to confirm branch closures and lay offs in a new business turnaround plan to be presented to the EU commission. -
And we are back live on air from Davos. Our headlines at this hour
- Bank of Japan governor Haruhiko Kuroda tells CNBC he believes President-elect Donald Trump's policies will improve growth but warns his protectionist views are worrying.
- Sterling slips as Theresa May comes under fire in the House of Commons for her Brexit plan, with Labour Leader Jeremy Corbyn calling her the 'Irony Lady'.
- Propping up the private sector. Saudi Arabia's finance minister tells CNBC his country's latest budget is the most ambitious one yet.
- "Tough measures are unavoidable" - That's the message from Deutsche Bank's board as it drastically cuts bonuses for its senior staff.
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In Davos, some of Europe's top CEOs offered an array of reasons on why Trump's Presidency could be positive for global growth.Click play to hear them: -
The IMF has praised Saudi Arabia's 2017 budget and said plans to eliminate its fiscal deficit by 2020 were feasible. However, the fund slashed the kingdom's growth forecasts to their lowest level since the financial crisis, citing a contraction in the oil sector due to last month's production cuts.
In his first ever international interview as Saudi Arabian Finance Minister, Mohammed Al-Jadaan, told CNBC that Saudi Arabia is on the right track to diversify its economy by 2030.It is basically a combined effort of various government agencies with the new entities that have been established to support the achievement of the targets that are set under 2030. So we have various regimes that are set to ensure that the government has the necessary support, the necessary capacity to achieve these targets so I'm very comfortable.
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An hour and 16 minutes left in European trade and markets are in mixed territory.
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U.S. Vice President Joe Biden delivered an impassioned final speech -- accusing the Russian President of using "every tool" in his power to undermine Western democracies.Speaking at the World Economic Forum in Davos, Biden also warned that popular movements have demonstrated a "dangerous willingness to revert to political small-mindedness" and called for a return to Democratic ideals
U.S. Vice President Joe Biden
More on that story can be found here. -
OPEC's oil production in December decreased by 221 thousand barrels a day, to average 33 million in the month. This, after OPEC and non-OPEC members reached an historic agreement to cut output in November.
On set in Davos Dan Yergin, Vice-Chairman at IHS Markit say you will see a notable increase in global production from U.S. shale if the oil price sticks between $55 and $60 dollars per barrel.Yergin says OPEC now considers shale as a permanent part of the global mix.
On the border tax Yergin notes its complex nature:The whole history has been to reduce tariffs and now we want to bring them back. It will take time to work out.
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Jamie Dimon is CEO of JP Morgan is on air now.He says the market is anticipating a reduced regulatory environment and it needs to be seen how much will come through the pipeline.He highlights tax as something that must be addressed.We need tax reform, we've been driving capital overseas for 8 years.
Dimon claims small banks as well as big banks will benefit from a review of regulation. -
I think you label yourself something then you have a knee jerk reaction to everything you hear.
Jamie Dimon addressing the idea that he may be either a Democrat or a Republican.He wouldn't say if he was in discussions regarding the job of Treasury Secretary.I will say this. I wasn't offered the job and I wouldn't have taken it.
On the area of protectionism, Dimon says the United States shouldn't reject trade deals to readily.Trade has given the benefits of trade. It has lifted 2 billion people out of poverty. Think about that.
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Deutsche Bank has drastically cut 2016 compensation, announcing it will not pay senior managers any bonuses for last year. The lender's board told staff in a memo that tough measures were unavoidable, due to its substantial legal bill.
This after Deutsche finalized a 7-point-2 billion settlement with the DOJ over the sale of mortgage-backed securities leading up to the financial crisis.
Geoff will be speaking to the CEO of Deutsche Bank, John Cryan, EXCLUSIVELY later this evening. Tune in from 18:00 CET for that conversation.
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Steve is at the Congress Centre in Davos conducting a panel on the transition to clean energy. It is just getting started. If you want to listen in in full, you can click here .Christina Figueres says we need to be at the world's maximum emissions within 4 years.That sounds practically impossible. It means we need half of electricity to be generated from renewable energy and we need all new cars to be non-petrol by 2035.
Figueres identifies coal as a laggard in the drive to reduce carbon.We need to recognize that there is no new space for coal.
Christina Figueres former Executive Secretary the United Nations Framework Convention on Climate Change (UNFCCC). -
Ursula von der Leyen, German Defense Minister says she is very curious to meet Donald Trump.She says it is time to meet and cooperate within the framework of NATO which is aNATO has a future because it is an alliance based on values and trust.
Ursula von der Leyen says itt should be remembered that when 9/11 occurred it was the principles of NATO that allowed nations to fight back in unison.
Ursula von der Leyen, German Defense Minister
She says what we have learned from the migrant crisis is to secure the outer border of the European Union.On NATO's relation with Russia she says its important to remember that Putin would like to see the alliance crumble and that is a good reason to keep it. -
And this is how U.S. markets are faring after nearly two hours of trade.
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European stocks were little changed at the close on Wednesday as investors digested a number of corporate reports.The pan-European Euro Stoxx 600 provisionally closed 0.1 percent lower with sectors and bourses mixed. The FTSE 100 was up by more than 0.3 percent after reaching a new high on Tuesday.Technology stocks moved higher after strong earnings reports.Shares of Pearson, the British publisher, tanked on Wednesday, down by more than 28 percent. The firm cut its profit outlook for the next two years, citing "unprecedented" changes in the publishing market.The Danish biotechnology company Novozymes beat expectations on Wednesday, announcing sales of 3.71 billion crowns ($530 million) in its fourth quarter.We will be back from 05:30 GMT tomorrow!
