World Markets Live - May 10 - CNBC Live Events

CNBC Live Events

World Markets Live - May 10

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

    Wolters Kluwers met expectations with its first quarter results, posting a 3 percent rise in revenues. The Dutch IT services company reaffirmed its full-year targets, saying it is confident in delivering solid organic growth and further margin improvement.
    Nancy McKinstry, CEO of Wolters Kluwer, explained why the company is continuing with its share buyback programme despite share prices being at multi-year highs.
    We have a very healthy balance sheet. We have very much advocated an a programme in terms of uses of our cash that balance debt repayment, investments in the business in the form of bolt-on acquisition and returns to shareholders, both in the forms of dividends and share buy backs.
    So right now, given the fact that our net debt to EBITDA is in a very healthy place, we believe that we can continue to increase the dividend, which we did with the full year results, as well as continue our share buy-back programmes. 
    Nancy added she was optimistic about the business and continuing the buy-backs signaled this optimism to investors.
    Comment ()
    It's going to be a tough day for Jes Staley.

    Jes Staley 

    The CEO of Barclays will face shareholders at their annual meeting in London, and it's expected to be a tense showdown. A key investor advisory firm has called on the bank's shareholders to abstain from re-electing Staley to the board in protest to a recent whistleblower scandal, which has lead to investigations by U.S. and U.K. regulators. 

    Staley is under fire for attempting to unveil the identity of an employee in violation of company rules. However, sources close to him have told CNBC he is confident most shareholders will back him. 

    Sticking with banks and Unicredit is set to report its quarterly results later today

    Filippo Alloatti, Senior Credit Analyst, at Hermes Investment Management is on set and he says Unicredit is now solvent and properly capitalized after a recent cash call.

    Alloatti says Unicredit is now moving to the stage of disposing of non-performing loans. This action will be crucial to the bank's success he says.

    Comment ()
    CNBC will be speaking with Intesa Sanpaolo CEO Carlo Messina  about the Italian lender's first quarter results in less than half an hour.
    Comment ()
    Sweden's central bank says it is too early to change policy direction, according to the bank's latest minutes.
    Cecilia Skingsley, deputy governor of the bank says inflation is not too far from the bank's target due to good conditions, and the bank is ready to act if the currency threatens too much inflation.
    Comment ()
    Joining us now is Peter Trubowitz, Professor of International Relations and Director of the United States Centre at the London School of Economics.

    He says Donald Trump did not cover himself in glory by firing the FBI directorJames Comey and big questions remain.

    Trubowitz says the two big questions now are 

    1. What happens to James Comey's files.
    2. How many senators come forward and call for an independent investigation.

    Trubowitz: Russia questions will stifle Trump agenda 

    Trubowitz says Trump's argument that Comey didn't handle himself well is unlikely to wash with many. He says leaks from fellow FBI employees could be likely as Comey was quite popular in his organization.

    As for a replacement, he says there is little clarity as to who could satisfactorily fill the role.
    Comment ()
    ITV shares are down almost 2 percent in European trade this morning.
    The U.K. broadcaster reported it was on track to deliver its full year guidance, but issues a warning on advertising revenue, saying they expected ad revenue to fall about 8 percent in May and to drop as much as 20 percent in June. 
    Comment ()
    The EBRD forecasts that Russia's GDP will grow 1.2 percent in 2017 and 1.4 percent in 2018.

    Source: Trading Economics 

    Comment ()
    Intesa Sanpaolo posted a strong set of numbers with an almost 12 percent increase in net income during the first quarter. The Italian lender said its core capital ratio is at 12 point 5 percent, down 0.4 percent from the end of December.

    Carlo Messina, CEO at Intesa Sanpaolo is on set.

    He says the bank is now experiencing the highest wealth management growth among its peers.

    Messina: Chinese market is very important to us 

    Messina says the wealth management focus is something he wants to replicate in China but the bank will not compete with other banks such as UBS and Credit Suisse who are focussing on high net worth.

    He says despite targeting Chinese people that are not high net worth, the bank can still maintain margins.

    On the story of not buying Generali, he says there was no obvious merit to his existing shareholders.

    The boss of Intesa says Net Interest Margins are highly correlated and sensitive to a rise in wider interest rates and the expects the bank to take good advantage of that eventuality.

    In one or two years we will have a reduction in QE and we will have an increase in interest rates. It is likely this environment will start to happen after the German elections.

    The recent positive re-rating of banks is down to a"30 percent reduction" in systemic risks. he also cites a more positive feeling about the future of the euro zone as well as an expectation of higher interest rates.
    Comment ()
    The draw for the 2019 rugby world cup in Japan has taken place. Teams not in bold, have yet to be decided.

    • Pool A: Ireland, Scotland, Japan, Europe 1, Play-off winner
    • Pool B: New Zealand, South Africa, Italy, Africa 1, Repechage winner
    • Pool C: England, France, Argentina, Americas 1, Oceania 2
    • Pool D: Australia, Wales, Georgia, Oceania 1, Americas 2
    Comment ()
    President Trump will meet with Russian Foreign Minister Sergei Lavrov at the White House later today.  

    This will be the highest level in-person meeting between the President and the Russian government since he took office.

     Lavrov to meet Trump today.

    Comment ()
    Canadian pension fund manager PSP Investments has shrugged off Brexit uncertainty with its decision to open a new European office in London. 

    PSP says the move demonstrates its confidence in the European growth outlook. 

    André Bourbonnais, President and CEO at  PSP Investments has joined Carolin on set.

    Bourbonnais says he believes London will remain the financial center of Europe even if some of the activity is de-centralized to cities such as Paris or Frankfurt.

    Bourbonnais says short-term volatility is likely with Brexit but long term he believes in areas such as student housing.  
    Comment ()
    Looking forward to the U.S. trading day we have the following to watch for.

    Earnings BTB: Toyota Motors, Mylan Labs, Norwegian Cruise Line, Crocs, Pershing Square Holdings, SodaStream, Sotheby's, Time, Wendy's, Wolverine Worldwide

    Earnings ATB: 21st Century Fox, Intl., NetEase, Snap, Symantec, Whole Foods, e.l.f. Beauty

    On the data front we have (all times eastern):

    0700 Mortgage Applications

    0830 Import & Export Prices

    1030 Oil Inventories

    1400 Treasury Budget

    At present U.S. markets look set to open a touch higher.

    Comment ()
    @ReutersJamie highlighting the continued lack of volatility predicted for equity markets.

    Comment ()
    The European Commission is to open further probes regarding competition in the e-commerce sector .after publishing findings in a report.

    The main findings of the report are as follows:

    • A large proportion of manufacturers decided over the last ten years to sell their products directly to consumers through their own online retail shops, thereby competing increasingly with their distributors.
    • Increased use of selective distribution systems, where the products can only be sold by pre-selected authorized sellers, allows manufacturers to better control their distribution networks, in particular in terms of the quality of distribution but also price.
    •  Increased use of contractual restrictions to better control product distribution. Depending on the business model and strategy, such restrictions may take various forms, such as pricing restrictions, marketplace (platform) bans, restrictions on the use of price comparison tools and exclusion of pure online players from distribution networks.

    Commissioner Margrethe Vestager in charge of competition policy said: "Certain practices by companies in e-commerce markets may restrict competition by unduly limiting how products are distributed throughout the EU. 

    The full press release can be found here.

    Comment ()
    European markets as they stand look like this.

    Europe's construction and materials stocks were the worst performers Wednesday as investors reacted to earnings news. Germany's HeidelbergCement reported operating profits for the first three months of the year had contracted 3 percent compared to 2016's first-quarter. Its shares slipped over 2 percent on the news. 

    Media stocks were also moving lower Wednesday on worse-than-expected earnings reports. Commercial broadcaster ITV moved towards the bottom of the sector after it said net advertising revenue could fall by as much as 20 percent in June. The U.K. based firm's shares dipped 1.6 percent.

    Elsewhere, Dutch banking firm ING Groep moved towards the top of the European benchmark, boosted by underlying pretax profits. Despite posting a fall in first-quarter profits, the Netherlands' largest lender by assets said it had been supported by continued loan growth and good cost control. Its shares jumped over 2 percent in mid-morning deals.

    Comment ()
    Several media outlets are reporting that the U.S. ban on electronic devices could shortly be extended to European airports.

    The U.S. issued a directive in March requiring laptops, tablets, e-readers and cameras to be put into the checked baggage on board for flights from 10 airports in eight countries. Affected airports include Abu Dhabi; Dubai; Doha, Qatar; and Istanbul.

    The directive did not extend to flights that stopped in Europe en-route to the U.S. but there are suggestions that s about to change.

    According to the website, the European Commission has scheduled a meeting of the Aviation Security Committee for Thursday to assess the situation.

    CBS says that a decision on whether to include flights from Europe, including Britain, will be made in the next few weeks. 

    Comment ()
    U.S. President Donald Trump has fired FBI Director James Comey, according to a statement from the White House.

    In Trump's letter to Comey, the president said "it is essential that we find new leadership for the FBI that restores public trust and confidence in its vital law enforcement mission."
    Here's the press statement from the White House.
    The decision put international markets on edge, limiting movements in Asian stock markets and causing the dollar to pare back earlier gains.
    For more on this story, click here.
    Comment ()
    The European Central Bank has issued a study that claims unemployment across the continent is almost double that of official data. 

    The ECB said headline jobless data excluded people who fail to meet strict statistical criteria and also excludes those in part-time employment who want more hours.

    The report claims the labor market "slack" is actually around 18 percent rather than the 9.5 percent unemployment rate for the bloc. 

    “The level of the broader indicator of labor underutilization is still high,” the ECB said. “This is likely to continue to contain wage dynamics.

    The full report is found here.

    The report offers this summary breakdown:

    "Combining the estimates of the unemployed and the underemployed with the broader measures of unemployment suggests that labour market slack currently affects around 18% of the euro area extended labour force. This amount of underutilisation is almost double the level captured by the unemployment rate, which now stands at 9.5%."

    by david.reid edited by Spriha Srivastava 5/10/2017 10:51:27 AM
    Comment ()
    Barclays Chairman says we are encouraging whistleblowers to come forward and has seen an increase in the number of whistleblowers coming forward.
    Recent whistleblower was an 'external complainer' and not an employee, the chairman said, adding that "if I believed the CEO should go, he would go"
    Last month, Barclays chief Jes Staley admitted he "made a mistake" after his attempts to unearth the identity of a whistleblower resulted in regulatory investigation, according to Reuters reports.

    Staley also said that he did not offer resignation to the board and is "cooperating fully" with investigators but maintains that efforts he made to identify a whistleblower who made allegations about a recently-recruited senior employee were not intended to breach regulations.
    Both Staley and Barclays are currently under investigation by the U.K.'s Financial Conduct Authority (FCA) and the Bank of England's Prudential Regulation Authority (PRA), and New York's Department of Financial Services is also looking into Staley's behaviour regarding the events which were alleged to have taken place in June.

    Staley had tried to identify a complainant after what he saw attempts to "maliciously smear" the reputation of his new hire, according to internal emails referenced by The Guardian.
    Jes Staley, CEO of Barclays
    Comment ()
    U.S. mortgage applications rise 2% as more buyers hit the spring market
    The gains are slow and small, but mortgage volume is beginning to improve again, as more homebuyers sign on the dotted line.

    Total mortgage application volume increased 2.4 percent on a seasonally adjusted basis last week from the previous week. Volume is still nearly 14 percent below year-ago levels because of weaker refinancing, according to the Mortgage Bankers Association .

    Even as buyers complain of high home prices and limited listings, mortgage applications to purchase a home gained 2 percent for the week and are 6 percent higher than a year ago.
    Continuing strength in the job market and improving consumer confidence drove overall purchase applications to increase last week, said MBA economist Joel Kan. "The index for purchase applications reached its highest level since the beginning of October 2015, which was the week prior to the implementation of the federal government's 'know before you owe' rule.
    Comment ()
    Oil prices rose on Wednesday after a larger than expected fall in U.S. crude inventories and on attempts by OPEC to rebalance an oversupplied market by cutting output.

    U.S. crude oil inventories fell 5.8 million barrels last week, above analysts' expectations for a 1.8 million barrel decline, according to industry group the American Petroleum Institute.
    Despite the stronger trend, analysts said the market remained under pressure after a build in gasoline stocks in the U.S. which partially offset the fall in crude inventories.
    As long as you've got those builds in gasoline, it is going to be difficult for crude oil to rally, said Olivier Jakob, energy market strategist at Petromatrix in Zug, Switzerland.
    Comment ()
    US President Donald Trump has just tweeted in relation to his decision to fire FBI chief James Comey:
    Comment ()
    China has rapidly climbed the ranks to become the world's second-largest economy. Now, the most populous nation on the planet wants to increase its influence by digging further into its pockets — flush with cash after decades of rapid growth — to splash out with its "One Belt, One Road" policy.

    The initiative is meant to connect Asia, Europe, the Middle East and Africa to bolster trade and development. This weekend, hordes of foreign diplomats and business leaders are expected to descend on Beijing for a two-day meeting about the policy.
    President Xi Jinping first announced the policy in 2013; it was later named one of China's three major national strategies, and morphed into an entire chapter in the current five-year plan, to run through 2020.

    The plan aims to connect Asia, Europe, the Middle East and Africa with a vast logistics and transport network, using roads, ports, railway tracks, pipelines, airports, transnational electric grids and even fiber optic lines. The scheme involves 65 countries, which together account for one-third of global GDP and 60 percent of the world's population, or 4.5 billion people, according to Oxford Economics.
    Comment ()
    Paresh Davdra, CEO and Co-Founder of RationalFX analyses the move in pound ahead of the BoE rate decision on Thursday:
    The pound is rising against the US dollar as President Trump fires the FBI Director. The pound is moving towards the $1.30 psychological barrier against the dollar after the US currency weakens in response to the shock dismissal of the FBI Director James Comey, putting Sterling in a strong position ahead of the BoE rate decision on Thursday. This comes as the news that a Canadian fund management company joins the growing number of companies opening an office in the UK, shows confidence in the UK's post Brexit economy.

    Analysts will not be expecting any significant shift in policy if any from the BoE due to the upcoming election. Whilst interest rates may remain on hold for the foreseeable future, investors will be looking towards the performance of sterling in the lead up to the general election and afterwards. With the rise in the pound in reaction to the announcement of the election seen by economists as having the potential to partially limit rising inflation, investors will be looking to the currency's key drivers in the coming months to see if the pound can rise against its peers enough to impact on inflation and give the BoE some hope of meeting its inflation targets.
    Comment ()
    Check out which companies are making headlines before the bell:
    Walt Disney — Disney reported quarterly profit of $1.50 per share, compared to consensus estimates of $1.41 a share. Revenue fell below forecasts, however, and investors continue to be concerned about higher programming costs at ESPN.
    Time Inc. — The magazine publisher lost an adjusted 18 cents per share for its latest quarter, three cents a share more than expected. Revenue also fell short of estimates as print ad sales decline. 
    PPG Industries — The paint maker issued a statement saying it still believes its takeover proposal for Dutch rival Akzo Nobel is superior to Akzo's standalone plan. Akzo Nobel has rejected three takeover bids from PPG.
    Coach — The handbag and accessories maker was upgraded to "buy" from "neutral" at Goldman, which is upbeat about Coach's planned acquisition of Kate Spade and its overall willingness to deploy capital to make accretive acquisitions.
    Sotheby's — The auction house lost 21 cents per share for its latest quarter, compared to forecasts of a 38 cent a share loss. Revenue was well above estimates, on an increase in commissions and fees.
    TripAdvisor — TripAdvisor missed estimates by two cents a share, with adjusted quarterly profit of 24 cents per share.
    Toyota — The automaker forecast a 20 percent drop in profit for the current fiscal year, due to a rising yen and higher marketing costs in the U.S. market.
    Abercrombie & Fitch — Abercrombie is working with investment bank Perella Weinberg to field takeover bids from other retailers, according to a Reuters report. Sources familiar with the situation say there is no certainty that any deal for the teen apparel retailer will happen.
    Click here for a full list of companies.
    Comment ()
    NVIDIA shares are up more than 12 percent in pre-market trading on Wednesday morning, riding on the coattails of strong earnings after the bell on Tuesday.

    The company reported earnings of 79 cents a share on $1.94 billion in revenue, beating consensus of 66 cents a share on $1.91 billion in revenue. More importantly, NVIDIA's revenue was up 48 percent from a year ago, while GAAP EPS was up 126 percent.
    Comment ()
    US import prices rose 0.5% in April, vs 0.2% increase expected
    The import prices were seen rising 0.2 percent in April, following a 0.2 percent drop in prices a month earlier.
    Comment ()
    Jack Lew: Comey's firing raises questions about who has Trump's ear on big decisions
    Former Obama Treasury Secretary Jack Lew appeared on CNBC's "Squawk Box" on Wednesday.

    In a CNBC interview in January, three days before Donald Trump took office, Lew defended the Obama administration's economic record. At the time, Lew avoided political questions but defended the overall nature of the recovery following the 2008 financial crisis.

    Prior to leading Treasury, Lew was former President Barack Obama's White House chief of staff. Lew also served as White House budget director during the presidencies Obama and Bill Clinton.

    Steven Mnuchin, the current Treasury secretary under President Trump, said in a CNBC interview earlier this month the White House's tax-cutting plan aims to eliminate all loopholes except the mortgage interest and charitable giving deductions.
    Jack Lew
    Comment ()
    ECB chief Mario Draghi spoke at the at the House of Representatives of the Netherlands. In his speech, he highlighted that bank banks could be helpful in disposing non-performing loans. He also said that the Fed and the ECB are in different stages of recovery.
    It is too early to declare success. Underlying inflation pressures continue to remain subdued and have yet to show a convincing upward trend. The domestic drivers of inflation, namely wages, are not yet responding to the recovery and the narrowing output gap. Maintaining the current very substantial degree of monetary accommodation is still needed for underlying inflation pressures to build up and support headline inflation in the medium term.
    Comment ()
    U.S. stock index futures pointed to a lower open on Wednesday, as investors prepared to wade through new data and earnings, while keeping a close eye on the potential fallout from President Trump's decision to fire the director of the FBI.
    Comment ()
    US stocks are now open for trading with all three indexes opening in negative territory as investors focus on a flurry of data and earnings:
    Comment ()

    Dow opens lower after President Trump fires FBI Director James Comey

    CNBCThe Dow Jones industrial average opened lower as investors digested President Donald Trump's firing of FBI Director James Comey.
    Comment ()
    Let's take a look at the best and the worst performing stocks in the Dow Jones Index this morning:
    Comment ()
    Russia's largest oil producer Rosneft will fulfil obligation to further cut oil production if such an agreement would be achieved, Rosneft's chief financial officer Pavel Fedorov said during a conference call on Wednesday.

    He also said it was premature to "speculate" on possible scale and time frame of the deal.

    OPEC and industry sources told Reuters that the group and non-member oil producers were considering extending the global supply cut for nine months or more to avoid a price-sapping output increase in the first quarter of next year, when demand is expected to be weak.
    Comment ()
    The iPhone 7 was the world's best-selling smartphone during the first quarter of this year, Strategy Analytics said Wednesday.

    The research firm said it estimates Apple shipped 21.5 million iPhone 7 units during the quarter, giving the single device a 6 percent share of the entire smartphone market.
    The iPhone 7 is by far the world's most popular smartphone model, due to a compelling blend of user-friendly design, extensive supporting apps, and widespread retail availability for the device, senior analyst Juha Winter said.

    iPhone 7 was by far the world's best-selling smartphone in Q1, says report

    CNBCStrategy Analytics said Wednesday morning that the iPhone 7 was the world's best selling smartphone model during the first quarter of the year.
    Comment ()
    Ahead of the Bank of England rate decision tomorrow, Mike Bell, Global Market Strategist, JPMorgan Asset Management provides his thoughts on what the central bank may do:
    The market is 99% sure that the Bank of England will keep rates on hold on Thursday – and we agree. In fact, the market believes there is less than a 25% probability that rates will be raised by the end of this year. 
    Business surveys have been strong recently with both the Lloyds Business Barometer and the PMI surveys suggesting an acceleration in growth. But falling real wage growth combined with consumer confidence which is continuing to fall, is likely to cast enough doubt on the sustainability of growth to prevent the Bank of England from raising rates.  
    The recent strong rise in retail sales is unlikely to sway the BOE into action given the distortions caused by the timing of Easter and signs that the housing market is beginning to slow. The added uncertainty surrounding the upcoming Brexit negotiations and the UK election make it very unlikely that interest rates are increased this week. 
    We would expect a limited market reaction given that no rate rises are being priced in with sterling and gilts unlikely to move much.  
    Comment ()
    German Finance Minister says French President-elect Emmanuel Macron faces terribly difficult decisions. 
    Speaking to the media, the finance minister also said he has suggested further development of ESM since a euro zone finance minister and a joint euro zone budget would be unlikely due to need for treaty changes.
    Comment ()
    Barclays CEO Staley reappointed to the Bank's board with 97 percent of vote. Staley faces withheld votes in sign of investor protest. 
    Barclays board member Ian Cheshire reelected with 88 percent of votes. That's according to Reuters.
    Comment ()
    Shares in Barclays are trading nearly 2 percent higher as Staley gets reappointed to the board:
    Comment ()
    U.S. President Donald Trump and South Korea's New president Moon Jae-in speak by telephone. Trump says seeks early summit meeting with South Korea's new President Moon. 
    Both agree to cooperate closely on North Korea's nuclear issue. Trump congratulates Moon on his election, reassures North Korea nuclear problem can be resolved.
    Comment ()
    Thirty minutes to market close and stocks are trading red across the board except for FTSE100 that is trading 0.7 percent higher:
    Comment ()

    European markets under pressure; Trump fires FBI Director; ITV slips 1.6%

    CNBCEuropean markets moved lower Wednesday as investors focused on the latest batch of corporate earnings.
    Comment ()
    German Finance Minister says so far we managed to hold together the EU after Brexit decision, but "the pendulum is swinging back".
    The finance minister also said that Germany has an interest in a prosperous Britain and a strong financial hub in London, but there will still be some movements. The German FinMin said Britons will have to realise that Europe cannot be divided.
    Comment ()
    European markets are now closed for trading. The pan-European Stoxx 600 spent the day in negative territory but has just edged back towards positive and ended the day slightly higher:
    Comment ()
    Major European indexes have closed mixed. The FTSE was the best performing index today, closing 0.6 percent higher. The remaining indexes traded in negative territory through the day but the DAX edged into positive just before closing:
    Comment ()
    And that's all from us here at World Markets Live. Join us tomorrow from 0600 London time once again for more market moving news and analysis. Till then, have a nice evening and see you soon.
    Comment ()
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