World Markets Live - January 31 - CNBC Live Events
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CNBC Live Events

World Markets Live - January 31

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

  • Welcome to World Markets Live. Here are the opening calls for European markets.

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  • Here are the top headlines this morning:

    • U.S. stocks suffer their worst day so far this year after Donald Trump's travel ban rattles investors and continues to spark protests across America and in other major cities around the world. 
    • The President fires the acting Attorney General, saying Sally Yates 'betrayed' the Department of Justice by refusing to enforce immigration orders, replacing her with ally Dana Boente. 
    • The Bank of Japan holds steady on policy and raises GDP forecasts but it doesn't help the Nikkei which is hit by selling around a stronger Yen.
    • More spring cleaning for Deutsche Bank as it pays $425 million to settle a Russian laundering probe with U.S. authorities. But investors await details of a British settlment, with an annoucement from the FCA due later today.
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  • Tens of thousands of people have continued to rally in cities and at airports across the US, voicing their opposition to President Donald Trump's executive order on immigration. 

    Protesters gathered in cities including New York, Washington and Boston, as well as in London, where thousands of UK residents gathered outside of 10 Downing Street, some chanting "Shame on May" for her invitation to Mr Trump to visit the UK on an official state visit.
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  • Earlier, President Trump responded to reports of chaos at airports across the country. In a tweet, he blamed the disruption on a Delta computer outage, protesters, and the "tears of Senator Schumer", a reference to the New York Senator's emotional press conference where he choked up while speaking about the executive order. 


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  • U.S. markets were sold off in yesterday's session, as Donald Trump's travel ban rattled investors.

    Profit-taking may have taken place also, as stock markets were near all time highs.

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  • Asian markets were mixed. The Nikkei fell as a result of the stronger dollar, while the Shanghai Composite recorded a gain.

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  • The Bank of Japan has kept monetary policy on hold, but policy-makers are more bullish on the economy, forecasting stronger growth in the coming years. 

    Following a two-day board meeting, the central bank raised this year's GDP forecast and said it remains on course to meet its 2 percent inflation target by 2018.

    The yen is looking stronger today.

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  • Snap has chosen the New York Stock Exchange for its initial public offering, sources have told CNBC. 

    The parent company behind Snapchat could file for its IPO as soon as this week, according to Recode. Snap gets set to report earnings this week ahead of its stock market debut, which could take place around March.  

    It is understood that Snap's listing would value the business around $25 billion or more. 
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  • Here are the top headlines from Asia, courtesy of TL;DR.


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  • Apple's iPhone sales are expected to return to growth after 3 consecutive quarters of declines, when the tech giant reports earnings after the bell today. However, profits could still come under pressure, with Factset estimating a drop in earning per share to 3 dollars and 23 cents. 

    CNBC's Arjun Kharpal says this is an incredibly crucial quarter for Apple.

    It comes on the back of three consecutive quarters of iPhone declines and Tim Cook himself has said this is where we return to growth. If that doesn’t happen, yes, you will see some negative stock reaction today.
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  • French GDP data has been released.

    Q4 GDP rose 0.4 percent quarter on quarter versus 0.2 percent in Q3. This matched expectations.

    GDP grew 1.1 percent for 2016 as a whole versus 1.2 percent in 2015.
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  • President Donald Trump says he will announce his choice for a Supreme Court Justice tonight at 8 pm eastern time. 

    Reports indicate President Trump is considering Neil Gorsuch, a judge on the federal appeals court's 10th Circuit, and Thomas Hardiman, an appeals judge for the 3rd Circuit.

    CNBC's Jacob Pramuk wrote an article warning Trump's Supreme Court pick may spark another partisan battle. For more on this story, click here
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  • Brexit was the only item on the agenda, but Theresa May's meeting with her Irish counterpart, Enda Kenny, yesterday was overshadowed by the growing global reaction against U.S. President Donald Trump's travel ban.

    by luke.graham
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  • Deutsche Bank has agreed to pay a $425 million fine to US regulators, in relation to a $10 billion Russian money-laundering scheme.

    Deutsche was found to have moved money out of Russia using a "mirror trading" strategy, in which its London branch would sell a trade that the Moscow branch bought earlier in the day. 

    Reports suggest Deutsche Bank is also poised to settle with the UK's Financial Conduct Authority over the scheme.
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  • The U.K.'S FCA has fined Deutsche Bank £163 million for failing to maintain an adequate anti-money laundering control framework. This fine joins a $425 million fine paid to U.S. regulators.

    The FCA says this is the largest fine for control failings ever imposed by the regulator. It found significant deficiencies throughout the bank's anti-money laundering control framework. 
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  • Deutsche Bank says settlement amounts are already reflected in its existing litigation reserves.

    The bank will be one to watch at the European market open. Over 12 months, the German bank's share price is up around 13 percent.

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  • These are the top headlines this hour.

    • U.S. stocks suffer their worst day so far this year after Donald Trump's travel ban rattles investors. The President also fires Attorney General Sally Yates, saying she 'betrayed' the Department of Justice by refusing to enforce immigration orders.
    • The Bank of Japan holds steady on policy and raises GDP forecasts but it doesn't help the Nikkei which is hit by selling around a stronger Yen. 
    • More spring cleaning for Deutsche Bank as it pays $425 million to U.S. authorities and £163 million to the FCA to settle a Russian laundering probe. 
    • The French presidential election is the greatest existential risk facing Europe. That's the warning from Credit Suisse, as police question centre right candidate Francois Fillon over his wife's work history. 
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  • Games maker Nintendo reports 9-month operating profit of 26.32 billion yen, and revised full year profit forecasts to 20 billion yen from 30 billion yen.

    The company kept its full year revenue view at 470 billion yen. 
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  • H&M reported Q4 profit after financial items increased to 7,409 million Swedish krona, beating forecasts. Gross margin during the quarter was 57 percent.
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  • Antonin Jullier, global head of equity trading strategy at Citi, warns about the dangers of a strong dollar.

    It’s too early to move through some of the Trump trades, but a much stronger dollar would have been negative for the U.S. and would have been negative for the world and here in particular. So I think there’s been an effort recently to talk it down, including from President Trump.

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  • Givaudan reported a miss on the top and bottom line with 2016 net profit coming in at 644 million Swiss francs. Despite this, the Swiss fragrance brand kept its mid-term guidance on hold.

    Gilles Andrier, CEO of Givaudan, told CNBC the company grew 4.2 percent in 2016, which is within the guidance it has set for the next five years.

    We are used to those differences from one quarter to the other, which are really not so much a consequence of a change in consumer spending  but more in the timing of new launches coming from our clients.

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  • Greencore has posted a 17 percent rise in first quarter revenue, driven by strong growth in its Food to Go business.

    Patrick Coveney, CEO of Greencore, says the company’s business will be robust and won’t be negatively affected by the new U.S. administration.

    The essence of what the Greencore business model is, is we manufacture in country for sale in that country. Whether it’s in the U.K. or the U.S., all of our production, all of our workforce and the vast majority of the raw materials and packages we use for our products are sources locally, so we don’t really carry material import/export or trading risk between jurisdictions.
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  • President Trump has also fired interim Attorney General Sally Yates after she said the Department of Justice would not defend his executive order on immigration in court, effectively defying his directive. 

    In a statement, the White House said Yates, an appointee of President Obama "betrayed the Department of Justice by refusing to enforce a legal order designed to protect the citizens of the United States."

    by luke.graham

    Trump's new pick for Acting Attorney General, Dana Boente, issued a statement saying he will rescind Yates' guidance and direct the DOJ to "defend the lawful orders of our President." He will serve until Senator Jeff Sessions, Trump's pick for the post, is confirmed by the Senate.
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  • The French presidential elections pose the "greatest existential risk for europe." That's according to strategists at Credit Suisse. 

    In a note, the bank said the victory of conservative candidate Francois Fillon would be a positive development for the French economy, adding that centrist Emmanuel Macron could also be constructive for French economic growth. 

    The analysts cautioned that even if Marine Le Pen, leader of the far-right Front National were to win, her powers would be limited as her party would fail to gain a majority in France's lower-house.

    Front National leader Marine le Pen 
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  • Shares in Deutsche Bank are called to open higher, after it agreed to settle claims relating to its part in a Russian money-laundering scheme. 

    The lender will pay £163 million to the U.K.'s FCA, and $425 million to U.S. regulators. Deutsche was found to have moved money out of Russia using a "mirror trading" strategy, in which its London branch would sell a trade that the Moscow branch bought earlier in the day.

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  • Steve asks Antonin Jullier, Global Head of Equity Trading Strategy at Citi about the profitability of banks and whether they can return.

    He says the situation with banks is much more optimistic as the yield curve ticks up, but it will be a slow burn for banks.

    He adds that the case for U.S. banks looks much more robust.
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  • European markets are now open, moving slightly to the downside.

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  • The Spanish harmonized consumer price inflation for December has come in at +3.0 percent on the year versus a a +2.1 percent forecast. 


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  • The U.K.'S FCA has fined Deutsche Bank £163 million for failing to maintain an adequate anti-money laundering control framework. This joins a $425 million fine paid to U.S. regulators.

    The fine relates to a $10 billion money-laundering scheme of he Russian ruble at its Moscow and London operations.

    The FCA says this is the largest fine for control failings ever imposed by the regulator. It found significant deficiencies throughout the bank's anti-money laundering control framework. 

    Deutsche Bank
    says settlement amounts are already reflected in its existing litigation reserves.

    Shares spiking after yesterday's losses.



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  • Early movers on the Stoxx 600 include Alfa Laval, H&M and Luxottica. H&M reported increased profits in the fourth quarter.

    Meanwhile, Givaudan is at the bottom of the index after missing its top and bottom line for its 2016 net profit.

     
     

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  • Here's how the individual European markets are looking this morning. The Italian, Spanish and Portuguese markets are showing gains, while the U.K., German and French indexes are relatively flat.

     
     

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  • Givaudan shares are down sharply this morning. The stock is on track for its biggest one-day fall since January 2015 after it reported an earnings miss.

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  • David Moss, European Equities Fund Manager at BMO Global Asset Management has joined the team on set.

    He says the risk of an early end to the tenure of Yellen is not a front-and-center risk but certainly has to be factored in to think.

    As we see the presidency evolve we will see how it unfolds but it is certainly a tail-risk that we will need to think about it.


    On investments Moss said his firm hasn't changed very much in recent weeks. He says he still likes European banks and cyclical stocks but his firm is adopting a fairly broadly spread.

    Hewarns there a number of expensive stocks out there that are starting to find it tougher and they will react negatively if earnings disappoint.


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  • These are the sectors performing the best and worst in European markets following the opening bell.

     
     

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  • Ocado has reported full-year revenue up 14.8 percent to £1.27 billion. Pre-tax profit jumped 21.8 percent. The online grocer said it is busier than ever in talks with potential overseas partners. 

    Shares are up sharply today, rising 7 percent. Here's what the share chart looks like over the past 3 months.

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  • Spanish lender Bankia's 2016 net profit came in below expectations, falling 23 percent from a year earlier. The bank booked a 65 million euro hit in loan provisions in the fourth quarter. 

    This, after the European Union's highest court ruled last month against Spanish banks in a dispute with borrowers.

    Shares have dropped 0.41 percent at the open.


    Leopoldo Alvear, CFO at Bankia is on the phone.


    Alvear tells the team that pressure on income is being relieved slightly in the fourth quarter by an uptick in interest rates.

    He also cites the bank's low coast base is a reason to be cheerful.

    Alvera says the bank is different in that here are no developer loans on the balance sheet and that the non-performing loans are to do with mortgage defaults and in turn relate heavily to the country's unemployment rate.
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  •  The pressure is piling on Unicredit's rights issue after the bank said it expects to book a net loss of around 11.8 billion euros for 2016. The Italian lender also said its CET1 ratio would fall to 8 percent due to already announced one-off charges.

    Shares are higher today, up around 0.7 percent. 

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  • After 30 minutes of trade, our headlines look like this:

    • U.S. stocks suffer their worst day so far this year after Donald Trump's travel ban rattles investors. The President also fires Attorney General Sally Yates, saying she 'betrayed' the Department of Justice by refusing to enforce immigration orders. 
    • H&M shares are on course for their best day in over three years, as the retailer's earnings beat and it pledges to open more than 70 new stores. 
    • Investors turn their noses up at Givaudan, sending the stock to the bottom of the European market as slowing sales hit last year's profits. 
    • More spring cleaning for Deutsche Bank as it pays $425 million to U.S. authorities and £163 million to the FCA to settle a Russian laundering probe.

    Comment ()
  • Tens of thousands of people have continued to rally in cities and at airports across the world, voicing their opposition to President Donald Trump's executive order on immigration

    Protesters gathered in cities including New York, Washington and Boston, as well as in London, where thousands of UK residents gathered outside of 10 Downing Street, some chanting "Shame on May" for her invitation to Mr Trump to visit the UK on an official state visit.

    Earlier,
    President Trump responded to reports of chaos at airports across the country.
    In a tweet, he blamed the disruption on a Delta computer outage, protesters, and the "tears of Senator Schumer", a reference to the New York Senator's emotional press conference where he choked up while speaking about the executive order. 



    Comment ()
  • President Trump has also fired interim Attorney General Sally Yates after she said the Department of Justice would not defend his executive order on immigration in court, effectively defying his directive. 

    In a statement, the White House said Yates, an appointee of President Obama "betrayed the Department of Justice by refusing to enforce a legal order designed to protect the citizens of the United States."

    by luke.graham

    Trump's new pick for Acting Attorney General, Dana Boente, issued a statement saying he will rescind Yates' guidance and direct the DOJ to "defend the lawful orders of our President." He will serve until Senator Jeff Sessions, Trump's pick for the post, is confirmed by the Senate.

    Comment ()
  • Apple's iPhone sales are expected to return to growth after 3 consecutive quarters of declines, when the tech giant reports earnings after the bell today. 

    However, profits could still come under pressure, with Factset estimating a drop in earning per share to 3 dollars and 23 cents. 


    Analysts are pinning high hopes on the release of its next smartphone, which is expected to come out this year to mark 10 years since the first iPhone. 
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  • After a year of break-ups - the utilIties sector looks set for a rebuild in 2017. Since splitting in two last September, E.On shares are down 13 percent while Uniper's stock has risen 25 percent and the fossil fuel unit has become the subject of takeover talk.

    Mark Lewis, head of European utilities research at Barclays Investment Bank, says the outlook for utilities is more positive.

    The nuclear uncertainty is clearing definitely on (E.On) and there’s an interesting story, a value release story, to come through and on Uniper, it’s been a great run. Stocks outperformed the sector by 40 percent until the moment we downgraded it last week and we just felt it was time to take a bit of a pause on that..

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  • British politicians are to begin two-day debate today over the government's bill to trigger Article 50. 

    This as the Times newspaper reports that Prime Minister May will trigger Brexit proceedings on March 9th, during a European Council summit in Malta.

    Speaking at London's Chatham House, the EU parliament's top Brexit negotiator, Guy Verhofstadt, said Europe needed to be fair to those UK citizens who still felt connected to the bloc.

    Click play to hear him speak.

    by david.reid
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  • Hedge funds outperformed equities and bonds on a risk-adjusted basis in 2016, according to research by the Alternative Investment Management Association and data provider Preqin.

    Jack Inglis, CEO at AIMA, discusses the findings.

    The industry was in pretty good shape compared to some reports last year about it. We did a study with Preqin for the results of last year and found that on average hedge funds were actually up 7.4 percent.

    Now that’s only one measure, I think it’s very important also to look at the risk adjusted returns of those and that’s where it’s really quite interesting to look.

    According to Inglis, using the Sharpe ratio (a measure of risk-adjusted returns) showed hedge funds performed very well.

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