World Markets Live - May 15 - CNBC Live Events
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World Markets Live - May 15

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

  • European investment banks reported strong first quarter results despite ongoing weakness in net interest income. According to a report from Moody's, funding and liquidity profiles in the sector remain sound with digitalisation expenditure set to pay off in the longer term.
     
    Laurie Mayers, associate managing director at Moody's, discusses the report.
     
    We do expect that most likely the markets will remain volatile. We’re not saying that one quarter necessarily makes a trend, but it was a good quarter for the European investment banks from the point of view of their capital market revenues, with the exception of Deutsche and Barclays.
     
    But what we saw was that capital market revenues pulled the revenues for the quarter for these banks. Aggregate revenues overall were relatively flat and that’s reflecting weaker results in some of the none capital markets area where low interest rates continue to pressure profitability.
     
     
     
    Comment ()
  • RWE has beaten core profit expectations as greater efficiencies at power plants helped cut costs. Earnings fell 6 and a half percent year on year to 2.1 billion euros. 
     
    The German utility firm missed on sales but confirmed its outlook for the rest of the year. Shares are up nearly 3 percent today.
     
     
    Comment ()
  • TUI has posted an underlying EBITDA loss of 177.7 million euros in the second quarter. This compared to a loss of 126 million euros a year prior. 

    Europe's largest tour operator confirmed its guidance despite a "challenging environment". 
     
    Shares have dropped nearly 4 percent this morning.
     
     
    Coming up, there'll be an interview with TUI's CEO, First on CNBC, at 13:15 CET.
     
     
    Comment ()
  • Let's take a look at what to expect from the U.S. later today.
    Here's the schedule for economic data today (all times are ET).
     
    At 08:30 a.m. we have the Empire State manufacturing survey reading for May. The previous reading was 5.2, consensus expects a reading for May of 7.0.
     
    At 10:00 a.m. we have the  NAHB survey reading for May, which is expected to remain the same at 68.
     
    Then at 4:00 p.m. we have the TIC data.
     
    On the earnings front, Nippon Telegraph and Trivago are expected to report before the bell, while Vipshop and Noah Holdings will report after the close.
    Comment ()
  • Xi Jinping has called on major institutions to join his Belt and Road Initiative. Addressing leaders at a summit in Beijing, the Chinese President said it was necessary to reject protectionism and work together to achieve "win-win" results.
     
    Sophia Yan spoke with Zeng Guang’an, the chairman of construction machinery firm LiuGong, who told her China's investments abroad were creating a favourable business environment for domestic companies too.
     
    The business environment is getting better than before, because especially in the last two years the countries in the One Belt, One Road region, the people, their companies and their customers understand this is good for their country.
     
     
    Comment ()
  • Oil prices are on a tear today, up more than 2 percent, after energy ministers from Russia and Saudi Arabia jointly announced that crude production cuts need to be extended.
     
    Saudi Energy Minister Khalid al-Falih and his Russian counterpart Alexander Novak said on Monday in Beijing that the joint OPEC and non-OPEC deal to cut crude supplies needed to be extended from the middle of this year until the end of March 2018, according to Reuters.
     
     
    Comment ()
  • The Dow and S&P 500 finished lower on Friday, while the Nasdaq continued to go its own way, finishing higher and recording a 4th week of gains.
     
    The markets are called higher today, according to future values, with the Dow futures up about 32 points.
     
     
    Comment ()
  • The surge in oil prices is providing a big boost for commodity-linked currencies.
     
    The Canadian dollar is up about 0.6 percent against the U.S. dollar, while the Aussie is up 0.7 percent to a 10-day high.
     
     
    Comment ()
  • China's President Xi Jinping says broad consensus was reached at the Belt and Road Forum. He says he hopes the initiative will unleash new growth, according to Reuters.
     
    Xi also said he will work to ensure an open world economy and for trade liberalisation, as well as work to increase support for green and low carbon development.
    Comment ()
  • European-listed cybersecurity firms are rising today, following the "ransomware" attacks happening world wide.
     
    A malware program being called "WannaCry" is creating problems at hospitals, business, factories and schools in at least 150 countries. The program is capable of encrypting files on a computer, then demands a ransom payment in the form of bitcoin.
     
     
    Comment ()
  • The latest polling of voting intentions ahead of the U.K. general election on June 8th shows 49 percent back the ruling Conservatives, 31 percent support the opposition Labour party, and just 9 percent back the Liberal Democrats.
     
    Whatever the result of the election, investors will be more interested in finding out how the outcome will affect the markets.
     
    Fidelity International has produced a graph showing the U.K. stock market cumulative returns under each Prime Minister since Edward Heath in 1970.
     
     
     
    The market saw the most returns under the reforms of Margaret Thatcher, who was Prime Minister from 1979 until 1990. Meanwhile, returns were negative under Labour leader Gordon Brown, who was Prime Minister from 2007 to 2010 and during the financial crisis.
    Comment ()
  • Russian president Vladimir Putin held an extensive news conference this morning, to discuss Syria, oil prices and the worldwide cyberattack.
     
    Putin told reporters during his visit to Beijing that Russia will maintain contact with Syrian kurds but sees no need to give them weapons. 
     
    He said Russian has received no significant damage from the ransomware cyberattack, adding that Russia is not behind the attack.
     
    Putin said Russia supports the proposal to extend the oil output cut deal for another nine months, as it will ensure stability. 
    Comment ()
  • A spokesman for U.K. Prime Minister Theresa May says the government emergency committee will meet at 1600 GMT to discuss the international cyberattack, which affected the U.K.'s National Health Service on Friday.
     
    The spokesman says the impact of the cyberattack "is much the same as it was," but it is a complex issue, according to Reuters reports.
     
    They added that the ransomware attack was not limited to Windows XP, and the numbers of people using XP in the health service have dropped.
     
    Finally, May's spokesman said the U.K. is spending £4.2 billion on cybersecurity, with an extra £50 million to be spent over the course of the government's spending review.
    Comment ()
  • As we approach the mid-day point, let's take a look at the market performance in Europe.
     
    The pan-European Stoxx 600 index is currently down around 0.16 percent.
     
    The individual European bourses are more mixed. Several are negative, including the German DAX which earlier recorded a fresh all time high. The FTSE 100 remains positive. It also set a fresh record this morning.
     
     
     
    Comment ()
  • A key campaign policy of the U.K. Conservative party ahead of the June 8th general election is capping energy prices for consumers.
     
    This would have a significant impact on energy companies operating in the U.K. market. Deutsche Bank warns that some energy stocks now look overvalued.
     
    Despite underperformance this year Centrica (Sell) and SSE (downgrade from Hold to Sell) still look overvalued. It will not be easy for the big retailers to adapt to a price-capped world.
     
    We cut 2018 estimated EPS for Centrica by 16 percent and SSE by 12 percent, leaving dividends barely covered. E.ON (Buy) and innogy (Buy) are also likely to take a hit, but U.K. retail is less important to them and other businesses are performing well. Impacts on EDF (Sell) and Iberdrola (Buy) look less material.
     
    The Deutsche Bank report also reduced the estimated profit margins for the energy companies.
     
    Even taking into account cost cutting and adjustments to other tariffs we believe that a price cap could cut EBIT margins for retail by around 2 percent. We reduce our margin estimates for Centrica and SSE from 5 percent to 3 percent.
     
    We do not believe that the price cap will stop market share loss to new entrants, and customer service disruption from rapid cost cutting is a risk.
     
    In the medium term the fixed tariff structure of a cap may make the industry more vulnerable to cherry-picking and lost volumes from self-generation (solar) and investment in energy efficiency. Retail profits may never return to healthy growth.
     
    Centrica  and SSE shares are trading down today.
     
     
    Comment ()
  • The FTSE 100 hit a fresh record high this morning, rising more than 0.2 percent to 7452.12.
     
    The gain was driven by stocks in the energy and financial sectors. Energy stocks got a boost this morning from the rising price of oil, although the FTSE 100 has trimmed back these gains.
     
     
    The weaker pound also helped the index, according to Ipek Ozkardeskaya, Senior Market Analyst at London Capital Group, commenting in a Dow Jones report.
     
    The FTSE 100 extended gains to uncharted territories on the back of softer  pound, firmer oil and commodity prices. Mining (+1.46%) and energy stocks (+0.86%) lead gains.
     
    GBP/USD closed last week below 1.2900, after the Bank of  England disappointed the hawks at last week's monetary policy meeting. The failure to fight back the 1.3000 offers could encourage a deeper downside correction in cable.
     
    The pound is making headway today against the dollar, up 0.3 percent to 1.2928.
     
     
     
    Comment ()
  • TUI has posted an underlying EBITDA loss of 177.7 million euros in the second quarter. 

    This compared to a loss of 126 million euros a year prior. Europe's largest tour operator confirmed its guidance despite a "challenging environment". 

    On air to explain the performance, Fritz Joussen, CEO of TUI Group said when you look at the first half performance there are some underlying trends.

    He said cruise and hotel bookings are the two elements driving the company profits.

    Joussen is also not too concerned about terrorism-related slowdowns in bookings.

    Yes it's true that we shift some customers from Egypt, Tunisia or Turkey to other countries but we have an 8 percent customer rise year-on-year so that is not really a problem for us.
     
     
    Shares in TUI are currently lower by more than 3 percent. This despite an upgrade from the research team at Barclays.



    Comment ()
  • The threat of a global "ransomware" attack continues to be assessed this morning and the Squawk U.S. team has a former NATO commander on air.


    I'm hesitating to describe this attack as a nascent cyber "Pearl Harbor", but we need to wake up.
     
     
     - Former NATO commander, Admiral James Stavridis

    Stavridis says countries and firms need to think of this cyberattack as a pandemic or virus.

    He says the there are mixed messages on the global impact this Monday morning as we are "seeing some issues in Asia but not so much in Europe".
    Comment ()
  • The "WannaCry" ransomware attacks, which have affected thousands of computers across 150 countries, seems to be coming under control, according to Kaspersky Lab.
     
    The cybersecurity company says it has noted about 500 new WannaCry attacks across is customer base today, compared to six times as many attempts during the first hour of the attack on Friday, explains Costin Raiu, Director of Global Research and Analysis at Kaspersky Lab.
     
    We do not believe any of these variants were created by the original authors - most likely they were patched by others keen to exploit the attack for their own ends.
     
    The first one started spreading on Sunday morning, at around 02.00 UTC/GMT and was patched to connect to a different domain. Kaspersky Lab has so far noted three victims for this variant, located in Russia and Brazil.
     
    The second variation that appeared during the weekend appears to have been patched to remove the killswitch.  This variant does not appear to be spreading, possibly due to the fact it has a bug.
     
    It is difficult to estimate the total number of infections. Our own telemetry indicates that over 45,000 users have been attacked but this represents a fraction of the total number of attacks (reflecting Kaspersky Lab’s customer share). 
     
    To reduce the risk of infection, Raiu recommends downloading the latest offical Microsoft patch and switching on all network security solutions.
    Comment ()
  • The U.S. markets will open in one hour and a half. The markets are expected to open higher, according to future values.
     
    The Nasdaq enjoyed its fourth week of gains last week. The Dow is called about 40 points higher.
     
     
    Comment ()
  • Oil prices are now up more than 3 percent on news that Saudi Arabia and Russia are keen to extend the oil production cut deal a further nine months, to early 2018.
     
     
    Commenting on the news, Goldman Sachs says the commitment from Russia and Saudi Arabia will increased the likelihood that all participants will agree to such an extension. 
     
    Goldman Sachs adds the announcement will likely extend the oil price rebound started last week. The financial firm predicts a Q3 price of $57 per barrel.
    Comment ()
  • U.S. listed shares of Cyren are up 35 percent in pre-market trade.

    Cyren is a cloud-based, Internet security technology company that claims to specialize in threat detection.


    Comment ()
  • While the pre-market moves in the U.S. may be abuzz with by swings in cybersecurity related stocks, in Europe it is the oil and gas sector that is driving markets.

    This after a commitment by Russia and Saudi Arabia to extend their production deal cap.


    Comment ()
  • The euro is moving up against the dollar. The common currency now sitting at a high for the week. Mind you, we have only just started the week.


    Comment ()
  • The French President Emannuel Macron has appointed the lawmaker Edouard Philippe as the country's new Prime Minister.

    The choice is seen as an attempt to draw in key figures from both the right and left of French politics.
    The announcement forms part of a busy first day for the president - he travels to Germany shortly to meet Chancellor Angela Merkel.
    Comment ()
  • How to tell if you're at risk from the massive cyberattack and what to do if you have been targeted

    CNBCRansomware attacks like WannaCry can be avoided by keeping software and anti-virus up-to-date, authorities said.
    Comment ()
  • U.S. cybersecurity firms look set to rise once markets open later today, as the world reacts to the global "ransomware" attacks which affected thousands of computer in at least 150 countries. 
     
    Shares in Cisco, FireEye and Symantec are called higher in premarket trade. Cisco and FireEye are called up around 2 percent, while Symantec is up about 1.6 percent.
     
     
    European Cybersecurity stocks and ETFs have seen sharp rises in trade today. Shares in the U.K. firm Sophos rose more than 7 percent.
    Comment ()
  • Stocks edging higher and on the tech-laden Nasdaq we see those firms with some focus on cybersecurity that are doing well.


    On the S&P 500, oil firms are also doing well. This as WTI cross up through its  50 day level of $49.50 and its 200-day moving average level of $49.15 per barrel.


    Comment ()
  • Tesla stuttering in a low gear today. Morgan Stanley has put the brakes on the stock, reducing the rating to "equal-weight". One analyst at the firm said Tesla's future competition will come from other tech firms rather than the auto industry.
     
    Morgan Stanley expects the Elon Musk firm to remain unprofitable until late 2019.
     
     
    Comment ()
  • The Nasdaq has hit a new record driven in particular by rises in Cisco, NVIDIA, Apple, Facebook and Symantec.
     
    The tech-heavy Nasdaq broke above a previous intraday high or 6,133, which was set last week, in morning trade. The technology sector rose about a third of a percent with Facebook and Alphabet gaining about half a percent.
     
     
    The Dow Jones industrial average rose about 50 points shortly after the open, with Johnson & Johnson contributing the most gains. The S&P 500 climbed 0.4 percent, with energy advancing more than 1 percent to lead advancers. Energy received a boost from rising oil prices.
     
     
    Comment ()
  • Oil has been helping stocks all over the world. Brent crude oil hit a three-week high after Saudi Arabia and Russia said supply cuts needed to last into 2018.
     
    Energy ministers from the two countries said on Monday that supply cuts should be prolonged until March 2018.
     
     
    Comment ()
  •  

    Already?
     

    The MP3 is dead, say creators after terminating licensing

    CNBCThe MP3 is dead, according to its creators, who say that the digital audio encoding format has lost relevance in a world of new technology.
    Comment ()
  • The Nasdaq composite hit a fresh record high on Monday as gains in large-cap tech stocks lifted the index. Investors also kept an eye on surging oil prices after comments from the Russian and Saudi energy ministers.
     
    Comment ()
  •  
    The U.S. housing market index in the homebuilders' survey rose to 70 in early May from 68 in Apr, above the 68 consensus.
     
    The rise was despite the imposition of tariffs on lumber imports from Canada.  

    This report shows that builders’ optimism in the housing market is solidifying, even as they deal with higher building material costs and shortages of lots and labor.
    - NAHB Chairman Granger MacDonald
     
    The index is almost back to the 71 level reached in Mar, which was the highest since 2005.  
     
    The rise in Apr came from both current sales and expected sales but the buyer traffic component fell.
    Comment ()
  • Its another record high for the S&P 500.
     
     
    Comment ()
  • The latest polling of voting intentions ahead of the U.K. general election on June 8th shows 49 percent back the ruling Conservatives, 31 percent support the opposition Labour party, and just 9 percent back the Liberal Democrats.
     
    Whatever the result of the election, investors will be more interested in finding out how the outcome will affect the markets.
     
    Fidelity International has produced a graph showing the U.K. stock market cumulative returns under each Prime Minister since Edward Heath in 1970.
     
     
     The market saw the most returns under the reforms of Margaret Thatcher, who was Prime Minister from 1979 until 1990. Meanwhile, returns were negative under Labour leader Gordon Brown, who was Prime Minister from 2007 to 2010 and during the financial crisis.

    Comment ()
  • And that is where we will leave the blog for today. We will be back from 06:00 a.m. tomorrow morning. Please join us again.
    Comment ()
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