World Markets Live - January 3 - CNBC Live Events
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CNBC Live Events

World Markets Live - January 3

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

  • Good morning from London and welcome to the first World Markets Live blog of 2017. Our headlines this Tuesday: 

    • China's manufacturing sector grows more than expected in December, with PMI's rising to a four year high, output nears a six year peak. 
    • Donald Trump blasts Beijing - saying the Chinese government has taken economic advantage of the United States, while not helping with North Korea
    • The Turkish government says it is homing in on the gunman responsible for the deadly nightclub attack, as the police makes several arrests and carries out a series of raids in Istanbul. 
    • Sweden's most iconic brands hits a roadblock. Volvo is not the best selling car in its home country for the first time in more than half a century as the VW golf wins the race in 2016. 

    Comment ()
  • And here is how Asian markets look in current trade. Ignore the Japanese print which is still closed.

    Chinese stocks are trading higher after factory activity hit the highest level in 4 years. December's caixin manufacturing PMI rose to 51 point 9, outpacing expectations, with output rising at the fastest pace since January 2011.  

    All European indices are called higher in early opening calls.
    Comment ()
  • The Dollar Index kicked off the new year by making its biggest one day gain in over two weeks. That continues the 2016 momentum that saw it post a fourth yearly rise in a row for the first time in over 30 years. 

    The greenback hit a 14 year high in December on expectations the Federal Reserve will raise rates a number of times in 2017. 


    On set Valentin Marinov, Managing Director, Head of G10 FX Research at Credit Agricole says his firm remains bullish on the dollar in 2017 with an expectation the currency will rise 2 to 2.5 percent in 2017.

    He says most of this rise will come at the expense of currencies exposed to China such as the New Zealand dollar.
    Comment ()
  • Is Donald Trump ready to change tack once fully installed in the White House?
    Comment ()
  • Bourses in Europe are set to start Tuesday higher.

    The FTSE 100 is seen 48 points up at 7156; the DAX 30 is expected to open 51 points higher at 11625; and the French CAC is seen 24 points higher at 4895. 

    Investors appear to be are starting 2017 in confident mode after solid manufacturing activity data in Europe and China. 
    Comment ()

  • Marinov: Pound and euro could be set to rise

    Chances are as input prices start picking up then core inflation in Europe will rise before long. 

    Valentin Marinov, Managing Director, Head of G10 FX Research at Credit Agricole is tipping a long awaited rise in inflation for Europe.

    Euro zone inflation data is unveiled tomorrow.

    For currency calls, he says the bad news appears to be baked in to both the pound sterling and euro and these could surprise to the upside in 2017.
    Comment ()
  • It will inevitably be another big year for crude watchers as the truth over whether oil producing countries will cap output is made clear.

    January 1 marked the official start of the deal agreed by the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC member countries such as Russia in November last year to reduce output by almost 1.8 million barrels per day.

    In session today, both WTI and Brent are pushing higher.


    Comment ()
  • Cuba paraded troops as well as thousands of citizens through its Revolution Square yesterday. Some interpreting the act as a demonstration of strength and togetherness ahead of Donald Trump's inauguration in just over two weeks. 

    The event marked the 60th anniversary of the landing of the Granma yacht which brought the Castro brothers into Cuba to start their revolution against the U.S. backed dictatorship. 

    by david.reid
    Comment ()
  • Thousands of international travelers were stranded in airports across the US after the Customs and Border Protection experienced an outage to its processing systems. The disruption lasted for nearly four hours, creating widespread frustration among passengers. 

    Frustrated U.S. travelers 

    Comment ()
  • President-elect Donald Trump will assume office in a historically weak position, this according to a recent poll from Gallup. Less than half of Americans are confident in his ability to handle international crises, use military force wisely, and prevent major scandals in his administration. 

    By comparison, roughly 70 percent of Americans were confident in the ability of Barack Obama, George W Bush and Bill Clinton in these areas ahead of their inauguration. 


    Steve issues a cautionary tale:

    Interesting but it's been shown that pollsters are often very wrong so I'm not sure why we should have faith in this poll. 

    Comment ()
  • U.S. President-elect Donald Trump tweeted on Monday that he would not tolerate fresh signs of North Korean nuclear aggression.

    In an annual New Year's Day speech, North Korean leader Kim Jong Un warned that preparations for launching an intercontinental ballistic missile (ICBM) were at the final stage. He added that he would continue enhancing his nation's capability for "pre-emptive strikes" unless the U.S. ended annual naval exercises with South Korea, or what Pyongyang calls "war games."

    Widely perceived as a renewed threat on Washington, Kim's remarks prompted an angry tweet from Trump.


    He went on to criticise China for its failings in assisting the US with the North Korea nuclear issue. 


    Comment ()
  • Our headlines this Tuesday: 

    • China's manufacturing sector grows more than expected in December, with PMI's rising to a four year high, output nears a six year peak. 
    • Donald Trump blasts Beijing - saying the Chinese government has taken economic advantage of the United States, while not helping with North Korea
    • The Turkish government says it is homing in on the gunman responsible for the deadly nightclub attack, as the police makes several arrests and carries out a series of raids in Istanbul. 
    • Sweden's most iconic brands hits a roadblock. Volvo is not the best selling car in its home country for the first time in more than half a century as the VW golf wins the race in 2016. 

    Comment ()
  • Euronext has made an "irrevocable" cash offer to acquire LCH.Clearnet. This deal has been expected for some time.

    The acquisition price is 510 million euros.

    LCH is a European-based independent clearing house that serves major international exchanges.  Euronext is the first pan-European exchange, spanning Belgium, France, the Netherlands, Portugal and the UK. 
    Comment ()
  • Peter Toogood, MD Investment at The Adviser Centre is our guest host today and has offered three market scenarios going forward.


    He says factoring in the Trump effect is hard but suggest that his influence on the world may be more than a little overblown.

    He's going to come along and do what? Reverse globalization? He's going to build steel mills again is he and all this rubbish? Why should he be able to do what no one else has been able to do for the last 40 years and stop the de-industrialization of the western world?


    Comment ()
  • The 35 expelled Russian diplomats and their families have arrived back in Moscow after President Obama ordered them out of the country last week. 

    Russian President Vladimir Putin condemned the expulsion but declined his own foreign minister's guidance to retaliate with the ordering out of American diplomats in Russia.

    Reuters: Russian diplomats arrive home 

    Comment ()
  • European markets are still forecast for a positive open if you take the futures market as a safe barometer.

    Positive data in China seen helping the positive sentiment.

    Remember the German and French markets were open yesterday but today marks the open of the FTSE.


    Comment ()
  • The Chinese foreign ministry has responded to Donald trump's tweet storm regarding China's efforts with North Korea's nuclear ambition. 

    The ministry has said China's hard work on de-nuclearization of the Korean peninsula "is obvious to all".

    The Chinese foreign ministry also urged Donald Trump to recognize the sensitivity of the Taiwan issue.

    The foreign ministry has said Trump's team is very clear on China's position on Taiwan. 
    Comment ()
  • The President-elect has suggested he will share new revelations about the cyber attacks during the US election that "other people don't know". 

    NBC's Kristen Welker has the latest from Washington. 

    by david.reid
    Comment ()
  • French consumer prices rose 0.3 percent in December, giving an annual inflation rate of 0.8 percent, preliminary EU-harmonised data from the INSEE statistics agency showed on Tuesday. That's according to Reuters.

    The 12-month increase, driven by a 4.3 percent jump in energy prices, brought the inflation rate to its highest level since May 2014 and marked a slight uptick from the 0.7 percent registered in November. 

    Here's a look at the annual percentage change in French inflation from Reuters:


    Comment ()
  • Oil prices are up about half-a-percent in trade.

    Amrita Sen, Chief Oil Analyst at Energy Aspects is on set and says the demand growth story for 2017 should be relatively robust.

    She expects to see demand growth of about 1.2 million barrels per day.

    Sen: $70 per barrel is ideal for everyone  

    Sen says shale oil production will rise but won't offset other production declines.

     Even 'after cheating' OPEC levels will fall and capital expenditure will also continue to fall.

    Comment ()
  • Apple is cutting production of its iPhone by 10 percent in the first quarter of 2017, according to a report from the Nikkei Business Review. 

    The company has been hit with slowing growth in global smartphone sales. This as the iPhone approaches its tenth anniversary this year. 

    This report has come off supply chain data which we always have to take with a pinch of salt as it might not translate to lower sales.

    Arjun says Apple is expecting much brisker business when it releases the iPhone 8.
    Comment ()
  • European markets open positively with every sector in positive territory.


    Comment ()
  • Financials and Travel & Leisure are the two sectors driving the most dramatically forward in early European trade.


    Comment ()
  • Here's how European bourses are looking.


    Euronext has made an "irrevocable" cash offer to acquire LCH.Clearnet. This deal has been expected for some time.

    The acquisition price is 510 million euros.


    For the first time in over 50 years the best selling car in Sweden is not a Volvo.

    According to the country's car-makers association the Volkswagen Golf drove to the top spot in 2016 with 5 point 9 percent of sales. 

    Volkswagen also stole the Swedish crown the last time Volvo shifted to second -- The Beetle was number one back in 1962.

    Comment ()
  • Peter Chatwell, Head of Rates Strategy, Mizuho International says the biggest question from investors at the end of last year was 'why are you still bullish bunds?;

    Clients have generally bought into Trumponomics and they are expecting yields to go higher so we had a bit of non-consensus call about being bullish bunds at the end of last year. We are just taking profit on that. 


    Also on the set is our guest host Peter Toogood, MD Investment, The Adviser Centre:

    The problem with bonds is they used to have a nice place because in terms of portfolio protection if the equities are selling off bonds always give that balance.

    Comment ()
  • Shares in the newly merged entity Banco BPM are up again in trading. 

    Banco Popolare and Banco Popolare di Milano agreed to merge last year, creating Italy's third largest bank.


    In the first day of trading, Banco BPM rose 9 percent.

    Comment ()
  • Our guest host Peter Toogood, MD Investment, The Adviser Centre says global debt continues to remain higher:

    Global total debt has never been higher as compared to 2008 so that means you can't raise funding cost. And this is the main construct around the problem of investing today. 

    Comment ()
  • The dollar has hit a 2-week high of 118 yen, marking an almost 0.4 percent rise on the day.


    Comment ()
  • Here are your top headlines at this hour:

    • European bourses see green as equities follow Asian markets higher on the back of strong PMI data out of China. 
    • The SMI shows Swiss strength on the first day of trading after the holiday, with Credit Suisse and UBS leading the way with more than 3 percent gains. 
    • An upgrade for Intercontinental group, after Barclays gives the hotel chain an overweight rating, sending the shares to a record high. 
    • A new year, a new deal. The London Stock Exchange agrees to sell its French clearing business LCH Clearnet to Euronext for 510 million euros, helping to clear the way for a merger with Deutsche Boerse. 

    Comment ()
  • Swiss PMI data for December has come in bang on expectations at 56.0. 

    The November figure was 56.6.

    That number is solidly in expansion territory with anything above 50 indicating growth.

    The euro sold in favor of the swissie, following the PMI release.


    Comment ()
  • U.S. President-elect Donald Trump tweeted on Monday that he would not tolerate fresh signs of North Korean nuclear aggression.

    In an annual New Year's Day speech, North Korean leader Kim Jong Un warned that preparations for launching an intercontinental ballistic missile (ICBM) were at the final stage. He added that he would continue enhancing his nation's capability for "pre-emptive strikes" unless the U.S. ended annual naval exercises with South Korea, or what Pyongyang calls "war games."

    Widely perceived as a renewed threat on Washington, Kim's remarks prompted an angry tweet from Trump.


    He went on to criticise China for its failings in assisting the US with the North Korea nuclear issue. 



    Comment ()
  • Israeli police have questioned Prime Minister Benjamin Netanyahu on suspicion of receiving illicit gifts from business executives. Authorities visited the Prime Minister at his official residence in Jerusalem for three hours on Monday evening to speak with Netanyahu "under caution.

    Ahead of the questioning, Netanyahu told Parliament he was certain "there will be nothing" found in the probe. 

     Israeli Prime Minister Benjamin Netanyahu

    Comment ()
  •  
    Apple is cutting production of its iPhone by 10 percent in the first quarter of 2017, according to a report from the Nikkei Business Review. 

    The company has been hit with slowing growth in global smartphone sales. This as the iPhone approaches its tenth anniversary this year. 

    CNBC's Arjun Kharpal joins us on the set to discuss the challenges for Apple:


    Apple going into 2017 after suffering their first revenue decline since 2001 so there are lots of questions around Apple. Can they still innovate? Can they create new products that consumers are excited? And the increasingly competitive smartphone market and Apple need to come out this year with their 10th anniversary edition.
    Comment ()
  • Steve noting that from February 11 2016, the Stoxx Europe 600 is in bull market territory. However as the chart below shows, European markets are still well below the summer 2015 highs.   


    Comment ()
  • Here are your top headlines at this hour:

    • New year, new highs.  European equities creep higher on strong manufacturing data at home and in China. 
    • A new year, a new deal. The London Stock Exchange agrees to sell its French clearing business LCH Clearnet to Euronext for 510 million euros, helping to clear the way for a merger with Deutsche Boerse. We'll speak the CEO of Euronext in 30 minutes
    • An upgrade for Intercontinental group, after Barclays gives the hotel chain an overweight rating, sending the shares to a record high. 
    • Donald Trump takes aim at Beijing - saying the Chinese government has taken economic advantage of the United States, while not helping with North Korea
    Comment ()
  • Bjarne Schieldrop, chief commodities analyst at SEB shares his outlook for the oil market for 2017:

    The 2017 crude oil market is starting bullishly but is likely to end modestly as US shale production revives. We expect 2017 to be much less dramatic than 2016 unless the supply side is hit by major unforeseen outages. The variations between despair and euphoria should be much less extreme and thus so should the variations in oil prices. While 2016 started bearishly and ended bullishly, we expect 2017 to be the opposite but not as extreme. Oil inventories are likely to draw down in the first half of 2017 as OPEC cuts production and crude oil curves are likely to move from deep contango to backwardation in 2017. While US shale oil production - which was falling in 2016 - is going to rise this year.

    Comment ()
  • CNBC's Sri Jegarajah joins us from Singapore to discuss Asian markets this morning.

    Comment ()
  • Oil prices have begun 2017 on the rise with investors hopeful that an OPEC deal to cut production will tackle the global supply glut. 

    The agreement officially took effect on Sunday, with Kuwait reportedly kicking off the cuts by trimming its ouput by 130 thousand barrels per day. That's according to Al Anba newspaper citing Kuwait Oil Company's CEO Jamal Jaafer. 

    Comment ()
  • British manufacturing growth climbed to a two-and-a-half-year high last month, fuelled by new orders from both home and abroad and adding to signs the economy ended 2016 strongly, a survey showed on Tuesday.

    The Markit/CIPS UK Manufacturing Purchasing Managers Index (PMI) rose to 56.1, the strongest reading since June 2014, from 53.6 in November. That exceeded all forecasts in a Reuters poll, which pointed to a decline to 53.1.
    Comment ()
  • Sterling is on the rise after UK PMI data:


    Comment ()
  • Euronext has made a 510 million euro all-cash offer for LSE's french clearing business, LCH Clearnet. Euronext says it expects pre-tax operating cost synergies of 13 million euros with the potential for additional revenue gains. 

    The completion is subject to the closing of the merger between Deutsche Boerse and LSE. 

    Stephane Boujnah, CEO at Euronext joins us from Paris. 
    It is a natural transaction for us because Clearnet used to be an asset controlled by Euronext till 2013. It was quite a natural step to buyback this asset in addition to securing the long term clearing assets this is providing diversification of our top line.


    This deal is dependent on the completion of Deutsche Borse and LSE so we are trying to maximise optionalities for our shareholders and clients. 

    The time frame is relatively well known. The European Commission is expected to vote and that decision is expected by the end of Q1. 

    Comment ()
  • Most Euro Zone 10-year government bond yields rise 5-8 basis points on day, analysts cite German inflation data. That's according to Reuters.



    Comment ()
  • Strength in financials and commodity-related stocks continued to underpin European equity markets with Britain's FTSE 100 starting the new year at a record high on Tuesday

    Comment ()
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