World Markets Live - May 22 - CNBC Live Events

CNBC Live Events

World Markets Live - May 22

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

    Speaking in Israel, Trump says Iran must "cease immediately its funding, training and equipping of "terrorists and militias."
    He said the Middle East had a “rare opportunity” to achieve peace.
    President Trump also said Iran cannot be allowed to have a nuclear weapon, saying Iran poses a threat to Israel.
    He praised Israel's leader Benjamin Netanyahu on progress in bringing peace between Israelis and Palestinians.


    We have a ‘rare opportunity’ to bring peace to the Middle East: Trump

    President Donald Trump landed in Tel Aviv on Monday, in his first overseas visit since taking office.
    Trump said he has new reasons to hope for peace in the Middle East.
    Just over an hour to go until the open of U.S. markets. Stocks are firming for a higher open, according to future values.
    Fears around Donald Trump's presidency seem to be subsiding and new issues, such as this week's OPEC meeting concerning oil production cuts, are coming into focus.
    Ford has confirmed Jim Hackett will replaced Mark Fields as the company's president and CEO.
    The automaker's chairman Bill Ford says the new CEO needs to re-energize the company. He says Ford needs speedier decision-making and a re-imagined business model. 
    The move, along with three new leadership roles created under Hackett, is designed to "further strengthen (Ford's) core automotive business and accelerate a strategic shift to capitalize on emerging opportunities," according to the company.
    Ford shares are trading 2 percent higher in premarkets trade.

    Ford Motor is replacing Mark Fields as CEO

    CNBCFord Motor is replacing its chief executive, Mark Fields, the NYT reports.
    Iranian President Hassan Rouhani secured a victory in Friday's election, defeating rival Ebrahim Raisi. A strong turnout of 70 percent helped the incumbent Rouhani, who received in excess of 23 million votes.
    Rouhani says the turnout was "unprecedented" and shows Iranians want moderation, according to Reuters.
    He added the result showed economic progress requires interaction with the world and Iran is ready to interact with neighbours to restore stability and peace.
    Commerzbank analysts have warned that the recent uptrend in risk assets is fragile. 
    Underlying sentiment is deteriorating too: speculative investor positioning suggests concerns about a liquidity-off environment with gold, equity, and UST futures sold. Outflows from DM equity funds and government bond funds point in the same direction, while inflows to credit funds and selling of VIX futures indicate that investors are in desperate need for carry.
    With volatility futures curves flatter than normal and the equity implied volatility skew below average, one might question the sustainability of recent highs – and the oil price recovery running out of steam (as suggested by our Sentimeters) could be the next catalyst for risk assets taking a leg lower.
     As an example of this fragility, Commerzbank points to the S&P 500, which hit a fresh all-time high last week, before going lower on concerns around President Trump.
    Ahead of the U.K. general election, Prime Minister Theresa May has come under pressure for a policy intended to address funding social care for the elderly.
    The policy has come under attack, being dubbed a "dementia tax" by opponents.
    May attempted to clarify the position today, stating their would be an "absolute limit" on the amount people would have to pay for their care costs. A cap in other words.
    The clarification is already being called a U-turn by the leader. Here's what she said in Wales today.
    We are proposing the right funding model for social care.  We will make sure nobody has to sell their family home to pay for care.  We will make sure there’s an absolute limit on what people need to pay.  And you will never have to go below £100,000 of your savings, so you will always have something to pass on to your family.  
    U.S. stocks are open, moving higher for a third day to extend a winning streak interrupted by last week's concerns around President Trump relating to James Comey.
    The Dow is up for a third session. The index hasn't managed to stay up for three sessions since February.
    These are the top and bottom performers on the index.
    Arconic shares are higher in early trade after announcing it has reached an agreement with activist investors Elliot Management.
    The two have reached a pact to end a proxy battle. Elliott Management will get to nominate three candidates for election as directors of Arconic, and one of Elliott's directors will be added to the committee to choose a new CEO.
    Ford shares are trading higher at the start of Monday. The company has confirmed the current CEO Mark Fields will retire to be replaced by Jim Hackett.
    Ford chairman Bill Ford says the auto maker needs a transformational leader at news conference.
    He says Jim Hackett is a proven transformational leader.
    Bill Ford says the company has to fix under performing areas.
    Jim Hackett, the new Ford Motor CEO, is currently praising former CEO Mark Fields.
    He says Fields was a dedicated CEO.
    Bill Ford and Jim Hackett are now taking questions from journalists and members of the financial industry.
    Hackett says many things are going well at Ford and he says he is always thinking about how to win.
    Iranian President Hassan Rouhani secured a victory in Friday's election, defeating rival Ebrahim Raisi. A strong turnout of more than 70 percent helped the incumbent Rouhani, who received in excess of 23 million votes or 57.1 percent of the vote.
    Renaissance Capital says the scale of Rouhani's victory gives him and his supports its strongest mandate in over a decade to push forward with reforms.
    Rouhani’s 23.5mn votes saw his mandate grow by almost 5mn from 2013 – and has given him the largest number of votes of any president in Iran’s history, with the sole exception of the disputed 2009 election, which saw Mahmoud Ahmadinejad re-elected as president (Ahmadinejad was disqualified by the Guardian Council in April from standing in this year’s election).
    Renaissance Capital says further reforms are necessary to boost faltering growth.
    In 2017/2018, in the absence of an oil output boom, the IMF expects growth to fall back to 3.3%, making economic reforms vital to tackle unemployment, which is hovering just under 13 percent, but with 30 percent of young Iranians out of work (Iran’s working-age population is expanding by about half a million per year).
    Mexico earlier reported real GDP grew 0.7 percent in the first quarter, marginally better than the expected growth of 0.6 percent. Year-on-year it 2.8 percent.
    Andres Abadia, senior international economist at Pantheon Macroeconomics, says this is a strong report showing Mexico's economy is resilient.
    Activity in manufacturing rose 0.5 percent year on year , up from a 0.5 percent contraction on average over the second half of 2016. The lagged effect of the MXN’s sell-off and the strength of the U.S. economy have driven the modest recovery of the manufacturing sector in recent quarters. 
    the detailed GDP report confirms the story from the monthly activity data, that strength in services and the recovery of the manufacturing sector were the key drivers of growth. But downside risks remain. We believe that domestic demand will be constrained by the lagged effect of monetary tightening and high inflation. And capex will continue to be muted until the final outcome of the NAFTA negotiations is known. 
     The news is helping the Mexican peso today. It is up almost 0.5 percent against the dollar today.
    The peso intitally fell sharply against the dollar in the months after the election of Donald Trump as U.S. president, but this gain has been whittled away and the U.S. currency is now just 0.12 percent stronger than the peso since November.
    President Trump's former National Security Adviser Mike Flynn says he will not comply with a Senate subpoena, pleading his 5th amendment rights.
    Flynn is refusing to turn over documents requested by the Senate intelligence committee as part of its probe into ties between Russia and Trump's election campaign.
    The U.S. Justice Department says Citigroup's Banamex USA unit agrees to pay $97 million in connection with violations of the bank secrecy act.
    Banamex has entered a nonprosecution agreement with  the DOJ ro resolve the probe and admitted to criminal violations by willfully failling to maintain an effective anti-money laundering compliance programme.
    While U.S. stocks extend a three-day winning streak, the dollar index has hit a fresh 6 and a half month low, earlier falling to 96.797.
    The index is down around a third today.
    Investors are waiting to hear from the Federal Reserve later this week. Uncertainty around the future of the Trump administration caused the index to fall sharply last week.
    President Trump is speaking live in Jerusalem to Israeli Prime Minister Benjamin Netanyahu.
    He again reiterates his promise that Iran will never have nuclear weapons and criticises the nuclear non-proliferation deal signed during the Obama administration.
    Bill Ford, chairman of Ford Motors, is speaking to CNBC. He says former CEO Mark Fields chose to resign after they held a conversation at the weekend.
    He says the firm is acutely aware of the lag in its stock price. He says the company has been working on autonomous vehicles for ten years and implies it will continue to invest in the space. He says he feels very good about the area and is pleased with the progress being made.
    European markets are now closed, with the Stoxx 600 finishing in the red.
    This is how the individual European bourses finished Monday trade.
    Technology and banks were the sectors leading the Stoxx 600 lower in a choppy day of trade to start the week.
    Here are the top and bottom performers of the pan-European index.
    Before we go, here's a look at U.S. markets. The Stock indexes are extending a three-day winning streak. This is the Dow's first three-day win streak since February.
    We'll close the blog there.
    Please join us tomorrow, when we'll have PMI indicators from France, Germany and the Eurozone. The European Investment Bank Board of Governors annual general meeting, and President Trump will visit Bethlehem.
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