World Markets Live - January 23 - CNBC Live Events
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CNBC Live Events

World Markets Live - January 23

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

  • Good morning and welcome to your Monday live blog. Our headlines  as we get th wek underway look like this:

    • Dismantling Obamacare, setting State meetings and taking the fight to the world's media kicks off Donald Trump's first week in office, as his inauguration speech weighs on the dollar amid protectionist concerns
    • 'We welcome Trump' says Russia's oil minister Alexander Novak, telling CNBC in an exclusive interview the new President's energy policies will help global producers, despite putting 'America First'.
    • A primary surprise in France as Socialist voters put Benoit Hamon ahead in the Presidential nomination race, dealing a blow to Former Prime Minister Manuel Valls. 
    • Samsung blames design and manufacturing problems for the Note 7 fires, pointing the finger at suppliers for causing the 2 and a half million device recall.
    Comment ()
  • This is the picture in equity markets that are open for trade in Asia.

    The markets wavered Monday, as investors looked past a weekend dominated with Donald Trump inauguration headlines and await clarity on policies including plans to possibly renegotiate the North American Free Trade Agreement and abandon the Trans-Pacific Partnership (TPP) deal.


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  • The slide in dollar value has extended since inauguration day although it should be noted the dollar still higher than election day.

    U.S. protectionist fears? 

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  • US President Donald Trump's administration has vowed to fight the US press  "tooth and nail" over what it views as unfair coverage of the President's inauguration, according to Chief of Staff Reince Priebus. 

    This, after White House Press Secretary Sean Spicer claimed the media manipulated photos and videos of the National Mall to make the inaugural crowds appear smaller than they actually were. 

    Senior adviser to Trump, Kellyanne Conway backed Spicer's comments on NBC's Meet the Press, after host Chuck Todd probed her on the truth of the claims in a heated exchange.

    Click play to hear it.

    by david.reid
    Comment ()
  • An estimated 3 million demonstrators worldwide took part in Women's Marches across the globe a day after Donald Trump's inauguration, according to event organizers. The marches were held to advocate for women's rights and stand against what many viewed as Mr Trump's misogynistic behavior. 

    Demonstrations drew hundreds of thousands to US cities including Washington DC, New York, Los Angeles and Chicago, while global marches took place in London, Paris, Tokyo, and more than a dozen other cities across the globe. 


    President Trump initially tweeted he did not understand why the march participants did not vote in the election. He later tweeted he recognized the rights of US citizens to express their views in peaceful protest. 

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  • Carl Weinberg, Chief Economist and Managing Director at High Frequency Economics is welcoming us to the proper first day of President Trump's administration.

    Expectations have gone too far, I don't think the market can possibly get what it has been expecting.

    He says the fiscal promise is too much to enact without a heft dose of wage inflation taking place.

    Weinberg says much of what Trump promised will need congress to pass legislation in which case there is little that can be enacted in a hurry.

    Weinberg: concerned over Trump's plans 

    He says what can happen is more talk on the wall with Mexico and potentially label China a currency manipulator.

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  • Carl Weinberg tells Karen he expects at least three rate hikes from the U.S. Federal Reserve this year. 

    For the dollar he sees only bullish signs as American monetary policy diverges from Europe and Asia.

    Weinberg also highlights the ongoing Brexit uncertainty which will keep the foot on sterling's throat.


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  • Samsung has blamed faulty batteries for causing its Galaxy Note 7 phone to catch fire. At an event at the company's Seoul office, Samsung announced steps to avoid repeating the incident.

    Pauline Chiou said reports suggest the phone's thin casing had been place too closely to the battery.

    The firm says it will delay the unveiling of its next flagship phone in order to completely remove risk.


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  • Foxconn shares are trading higher after it became the latest Asian tech firm to announce plans to step up investment in the U.S. market. 

    The electronics maker is considering building a $7 billion dollar manufacturing facility in America, according to a report from the Nikkei. 

    Foxconn's CEO says the project would be a joint venture with Apple, and that it would create up to 50-thousand jobs. 

    Chinese workers in the Foxconn factory in Shenzhen, southern China.

    On set  Brian Klaas , Fellow in Comparative Politics at the London School of Economics says this deal is a sign of firms trying to curry favor with the new U.S. President.

    Klass says one of the troubling things is because Trump hasn't released his tax returns, the public cannot be 100 percent certain that he isn't personally benefiting from these deals.

    For more on Foxconn, click on the link below.


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  • He's going to realize very quickly that he's on the same team.
    Brian Klaas , Fellow in Comparative Politics at the London School of Economics  says the Trump administration will soon realize it needs the CIA and that attacking security services is not a good idea.

     Brian Klaas , Fellow in Comparative Politics at the London School of Economics

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  • One of President Donald Trump's first acts upon taking office was to speak on the phone to the Israeli Prime Minister Benjamin Netanyahu. 

    The White House issued a statement saying the President had affirmed his  "unprecedented commitment to Israel's security" during the conversation. However, one issue not broached during the phone call between the two leaders was Donald Trump's campaign pledge to relocate the US embassy in Israel to Jerusalem

    NBC's Matt Bradley filed this report on President Trump's embassy plans. 

    by david.reid
    Comment ()
  • Former French Socialist Education Minister and party rebel Benoit Hamon has won the first round of the country's left-wing primary. 

    Hamon, who was sacked by President Hollande's government for criticizing his economic policies, led with approximately 36 percent of the vote, while former Prime Minister Manuel Valls stood in second with 31 percent of the vote. 

    The former Greek finance minister tweeted his support.

    Varoufakis keeps it social 

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  • White House officials have confirmed President Trump will meet with UK Prime Minister Theresa May on Friday. 

    Mrs May will travel to Washington for  "a couple of days". The occasion will mark Trump's first meeting with a foreign leader since assuming the Presidency. The future of NATO, the European Union, and a potential trade agreement between the two countries are likely to be key topics of discussion. 

    Ahead of the meeting, the British Prime Minister was asked if she'd be prepared to stand up to the US leader on key issues. 

    by david.reid

    Comment ()
  • A reminder of our headlines this morning:

    • Dismantling Obamacare, setting State meetings and taking the fight to the world's media kicks off Donald Trump's first week in office, as his inauguration speech weighs on the dollar amid protectionist concerns
    • 'We welcome Trump' says Russia's oil minister Alexander Novak, telling CNBC in an exclusive interview the new President's energy policies will help global producers, despite putting 'America First'.
    • A primary surprise in France as Socialist voters put Benoit Hamon ahead in the Presidential nomination race, dealing a blow to Former Prime Minister Manuel Valls. 
    • Samsung blames design and manufacturing problems for the Note 7 fires, pointing the finger at suppliers for causing the 2 and a half million device recall.
    Comment ()
  • In to the second hour of the show and joining us as guest host is Francesco Curto, Head of CROCI Investment Strategy and the Valuation Group at Deutsche Bank.

    Markets want 4.5 percent GDP in the United States but with 95 percent of those seeking work actually working in the United States, how is that achievable without inflation.

    Curto says in last 30 years globalization brought increasing productivity. He says reversing that will bring creeping inflation and a challenge for global investors.

    Curto:  Not yet time to de-globalize portfolio

    Curto says emerging markets look set to struggle in the Trump era but reversing globalization could take at least a decade and re-balancing a portfolio may be premature.

    Comment ()
  • At a meeting in Vienna over the weekend, OPEC and non-OPEC ministers sounded upbeat on progress so far in the first oil output agreement in over a decade. 

    The comments buoyed the oil price. However a jump in U.S. drilling levels capped those gains.


    Hadley spoke to Russian Energy Minister Alexander Novak on progress by oil producers to cap output.

    by david.reid

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  • Pauline is in Singapore with an update on Asian trade.

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  • In Europe, it looks like the uncertainty exhibited in Asian trading overnight will translate to a soft opening for stocks on the continent's major indices.


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  • The dollar has eased lower in Asia trade  after newly sworn-in President Donald Trump announced plans to implement a protectionist agenda.

    On Sunday, Trump said he planned to re-start negotiations with Mexico and Canada over NAFTA, or the North American Free Trade Agreement, which came into effect in the early 1990s. 

    Additionally, Trump said he would pull the U.S. out of the Trans-Pacific Partnership, or TPP, which would have created a 12-country free-trade bloc.

    The dollar/yen pairing is the most obvious example of greenback selling.


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  • Jonathan Golub, Chief US Markets Strategist at RBC reckons financials look attractive under a Donald Trump Presidency, while economically sensitive groups like energy, materials and industrials will also outperform. 

    But straight away, Golub says we would do remember that the Trump effect is limited.

    I think we are assigning everything in the world to just one guy who is somehow the new king of capitalism. It is just not the case.

    Golub says deregulation and tax cuts will put a fire under the U.S. economy and earnings should hit a higher gear.



    Comment ()
  • Former French Socialist Education Minister and party rebel Benoit Hamon has won the first round of the country's left-wing primary. 

    Hamon, who was sacked by President Hollande's government for criticizing his economic policies, led with approximately 36 percent of the vote, while former Prime Minister Manuel Valls stood in second with 31 percent of the vote. 

    From France CNBC reporter Claire Fournier has the latest on the race to be French president. She says the result was  a huge low for former PM Valls.

    She describes Hamon as the "Fillon of the left" in the sense of surprise.

    Fournier says the turnout of the socialist primary was low with only 2 million voters turning out. That around half of the Republican candidates. 

    Nancy Hulgrave (L) with CNBC reporter Claire Fournier (R)

    Fournier says centrist Emanuel Macron could prove the surprise package.
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  • The dollar index has hit a one and a half month low of 101.21, down 0.4 percent on day. The euro meanwhile has hit one and a half month high of $1.0755 against broadly weaker dollar, up half a percent on day:

    Comment ()
  • Francesco Curto, Head of CROCI Investment Strategy & Valuation Group, Deutsche Bank says middle class jobs have come under particular pressure.

    The number of people with "middle skills" has collapsed as automation has replaced many jobs.  

    He says on the other side of the ledger, asset price rises have also hurt the middle class terribly.
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  • European markets are now open for trading with the pan-European Stoxx Europe 600 opening 0.34 percent lower:

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  • Real Estate is the only sector that is in positive territory this morning, up 0.13 percent. Here's a look at the best and the worst performing sectors this morning:


     
     

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  • The German Dax always a little slow to come through but we are here now. Overall a pretty soft open to trade for the week.


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  • Shares in Capita are up nearly 4 percent, top performer on the Stoxx 600 this morning. Meanwhile, UBI Banca is at the top of the worst performing list this morning, down nearly 3 percent:

     
     

    1 of 2


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  • Shares in Generali initially failed to start trading on M&A speculation but are now trading up more than 4 percent after reports Intesa Sanpaolo, Allianz considering taking a stake:

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  • Philips Lighting sales and net income both missed expectations in the fourth quarter. However the lighting company said it remains committed to achieving positive comparable sales growth this year. Philips says it is projecting the adjusted EBITA margin to pick-up by between 50 and 100 basis points in 2017. 

    Comment ()
  • Kevin Boscher is CIO at wealth management firm Brooks Macdonald and joins the set for the open of European trade. 

    Karen asks Boscher if the sell-off in markets are an example of a "buy on the rumor, sell on the fact" Trump trade.

    Boscher agrees says the current sea of red on the markets is not too surprising as technical levels look a little overstretched. He believes  the market is sensing that optimism on earnings and Trump policy is overdone.

    On U.S. policy, he says the Fed will likely have to get more hawkish if Trump's growth policies start to bear fruit.

    But Boscher thinks 2017 will likely see the downside of the Trump plan make an impact before obvious growth can filter through. 
    Comment ()
  • Let's take a quick look at UK home builders this morning. Bovis Homes is the outperformer. This after the company's second biggest shareholder, Schroders is urging the homebuilder to take part in an all-share merger with its U.K. rival Berkeley Group, according to a Sunday Times report.  

    Schroders' request comes a matter of weeks after Bovis Homes issued a profit warning on the back of falling completion rates.  

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  • The Stoxx Europe banking index is down 1.3 percent - the worst performing sector this morning as investors continue to remain worried about the state of the European banking sector:

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  • Major European banks are trading sharply lower this morning, contributing to the overall weakness of the Stoxx Europe banking index. Uncertainty and concerns around Italian banks continue to add pressure on the banking index:

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  • China is still on a long term re-balancing act.

    Kevin Boscher, CIO at Brooks Macdonald says China's growth last year has been heavily reliant on monetary expansion and there are signs that Beijing is set to restrain that a little.

    Boscher says this year China watchers want to see increased consumer activity.

    Francesco Curto, Head of CROCI Investment Strategy & Valuation Group, Deutsche Bank agrees that a lot of the growth has been triggered by debt.

    He says the fiscal stimulus has also been debt fueled and that cannot last forever.

    Curto: Volatility set for Chinese assets  

    Curto says Chinese leaders have now successfully established themselves on the global stage.
    Comment ()
  • Actelion shares are under pressure after a trial of its drug to treat pulmonary arterial hypertension produced mixed results.  A doctor involved in the trial said the treatment only had a limited effect on patients.   

    Comment ()
  • US President Donald Trump's administration has vowed to fight the US press  "tooth and nail" over what it views as unfair coverage of the President's inauguration, according to Chief of Staff Reince Priebus. 

    This, after White House Press Secretary Sean Spicer claimed the media manipulated photos and videos of the National Mall to make the inaugural crowds appear smaller than they actually were. 

    Senior adviser to Trump, Kellyanne Conway backed Spicer's comments on NBC's Meet the Press, after host Chuck Todd probed her on the truth of the claims in a heated exchange.

    Click play to hear it.

    by david.reid


    Comment ()
  • Essentra shares have found their way to the bottom of the Stoxx 600 index, down 10 percent after the company estimated that fiscal year 2016 operating profit would miss or meet the lower end of its forecast:

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  • Italy's 10-year government bond yield touches six-week high at 2.036 percent, up 1 basis points on the day. 

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  • Markets dipping a little further lower after 30 minutes of trade.  


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  • Here are your top stories at this hour:

    • The dollar is in the doldrums amid protectionist concerns as Donald Trump takes his 'America First' mantra into the White House. 
    • 'We welcome Trump' says Russia's oil minister Alexander Novak, telling CNBC in an exclusive interview the new President's energy policies will help global producers. 
    • Gains for Generali. Shares in the insurer soar to the top of the Stoxx 600 on M&A speculation that Allianz could be interested in "parts" of the business. 
    • Bricks and merger! Shares in Bovis Homes jump on a Sunday Times report its second biggest shareholder is proposing a tie-up with smaller rival Berkeley Homes. 
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  • Shares in Generali soar to the top of the Stoxx 600 on M&A speculation that Allianz could be interested in "parts" of the business. 

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  • China's stable growth reflects stimulus not sustainability, according to Fitch Ratings. 

    Fitch in their latest forecasts have said that short-term growth targets have been prioritized over some areas of structural reforms. Efforts to reduce economy's dependence on credit-intensive investment have been prioritized and policy stimulus has succeeded in maintaining growth within official target range, but at the cost of further build up in leverage.

    The report from Fitch also warns that Chinese authorities are grappling with capital outflows and currency depreciation pressures. That's according to Reuters.
    Comment ()
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