World Markets Live - May 2 - CNBC Live Events
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CNBC Live Events

World Markets Live - May 2

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

  • Good morning, our headlines this morning are as follows:

    • President Donald Trump says he is considering breaking up the banks, reviving a campaign pledge the could use Glass-Steagall style rules to separate commercial and investment banking.  
    • Treasury Secretary Steve Mnuchin tells CNBC that current tax proposals don't have enough details to outline a timeframe, saying he is working with both the House and the Senate. 
    • The final week of campaigning in France's Presidential election sees Marine Le Pen use her May day rally to slam Emmanuel Macron as a clone of Francois Hollande. 
    • But the frontrunner hits back, branding Le Pen 'the Anti-France candidate', saying he will fight her extremist views until the very last second. 
    Comment ()
  • Disappointing consumer spending figures in the United States yesterday didn't stop markets managing to maintain some momentum.


    As for live markets, we currently look like this:


    Comment ()
  • U.S. Treasury Secretary Steven Mnuchin has said the upcoming tax overhaul will eliminate all existing loopholes with the exception of charitable giving deductions and mortgage interest. 

    In an interview on CNBC, Mnuchin reiterated President Trump's promise to provide relief to America's middle class.

    Source: Reuters 

    Comment ()

  • I think it is a massive canary in the coal mine. It is a disaster waiting to happen. 
     

    Steve believes poor auto sales data needs to be watched as it is a direct reflection of consumer struggle. He says in the U.K, 9 out of 10 cars are currently sold on a leasehold basis.
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  • The French Presidential candidates have attacked each other's record at May Day rallies ahead of the final round of voting this weekend.

    Charles Lichfield (L) questioned by Claire Fournier 

    To add to the discussion Charles Lichfield, Europe Associate at Eurasia Group is on set and Claire Fournier is in Paris.

    Claire asks Charles is Le Pen's message on Europe is confusing as she knows it is not popular with many French voters.

    he says it is one of le Pen's weakest areas:

    Le Pen is now making the point that you can push through protectionists policies without leaving Europe and while she may be right that could be too late to sway many French voters.
     
     
    Comment ()
  • DSM reported first-quarter earnings of 334 million euros, topping the 329 million euros analyst forecast consensus offered by Reuters. 

    Sales for the health, nutrition and materials firm came in at 2.16 billion euros, also topping estimates. 

    Geraldine Matchett, CFO at DSM joins us on air from Heerlends in the Netherlands.

    Matchett tells Steve the firm is very happy with the first quarter but Latin America is the one blot on the landscape due to weak consumer demand.

    A good quarter for DSM according to CFO Matchett 

    On the company's drive to reduce costs, Matchett doesn't confirm future job loss numbers but says the firm remains
    on track this year to "anchor the improvement programs". 

    On the wider macro picture, Matchett says the firm is focussing on European data which portrays a mildly positive picture and U.S. data which is also encouraging. 
    Comment ()
  • The dollar has hit a one-month high against the yen on Tuesday. 

    Reuters reporting that the dollar has been lifted by Treasury yields which surged after U.S. Treasury Secretary Steven Mnuchin commented on the possibility of ultra long-term bond issuance.


    Comment ()
  • Hadley has been speaking with Jihad Azour, Director of Middle East and Central Asia Department, at the IMF.

    The IMF has said that middle-class Saudi's will soon have to start paying their way rather than relying on government subsidies.

    Azour said structural reforms in Saudi Arabia should be aided by a concurrent effort to reduce budget deficits.

    IMF's Azour: structural reform in Saudi Arabia is possible

    Comment ()
  • Pauline Chiou is in Singapore and reflects on the positives and negatives of the Chinese data figure. 

    She also looks at the market effect of the Reserve Bank of Australia holding rates at 1.5 percent.

    by david.reid
    Comment ()
  • Our headlines at this hour are as follows:

    • President Donald Trump says he is considering breaking up the banks, reviving a campaign pledge the could use Glass-Steagall style rules to separate commercial and investment banking.  
    • Treasury Secretary Steve Mnuchin tells CNBC that current tax proposals don't have enough details to outline a timeframe, saying he is working with both the House and the Senate. 
    • The final week of campaigning in France's Presidential election sees Marine Le Pen use her May day rally to slam Emmanuel Macron as a clone of Francois Hollande. 
    • But the frontrunner hits back, branding Le Pen 'the Anti-France candidate', saying he will fight her extremist views until the very last second. 
    Comment ()
  • China's factory sector lost momentum in April, with growth slowing to its weakest pace in seven months.

    This as domestic and export demand faltered, according to a private survey Tuesday.

    The findings echoed those in official manufacturing and service sector data on Sunday.

    The Caixin/Markit Manufacturing Purchasing Managers' index (PMI) fell to 50.3 in April, missing economist forecasts' of 51.0 and a significant decline from March's 51.2.

    The index remained above the 50.0 mark which separates expansion from contraction.

    The full story is available here.
    Comment ()
  • Shares in Apple have hit an all-time high, the stock now up more than 25 percent this year, ahead of the company's second quarter results due today. 

    How the world's most valuable company is allocating its cash mountain, via buybacks and its dividend, could overshadow details such as how many iPhones it's selling.

    Arjun says Apple's suite of services are starting to show some "stickability" with customers and this is different from a firm like Samsung which is very much a device organization.


    On the tech stock rally our guest host Julian Chillingworth, Chief Investment Officer at Rathbone Brothers says he would not chase valuations at this point.

     Chillingworth highlights that tech firms have been borrowing heavily to conduct share buybacks.
     

    Comment ()
  • The European Commission will today issue a draft communication which stands to curtail the rights of UK firms to carry out euro-clearing operations

    That's according to the Financial Times, which has seen a draft of the communiqué. The Commission is expected to warn that financial firms, whose operations are of systemic importance to the EU, need to be regulated by the bloc. 

    Clearing is when an organization assumes the role of a buyer and seller in a transaction to reconcile orders between transacting parties.

    As things stand, the City of London currently clears in the region of 850 billion euros' worth of euro-denominated derivatives per day.


    Separately, the U.K. Prime Minister Theresa May has dismissed a report about her dinner with Jean-Claude Juncker as 'Brussels gossip.

    This after Frankfurter Allgemeine Sonntagzeitung described the meeting as a disaster. The German paper quotes Juncker as saying he is "10 times more skeptical than before."

    Adam Marshall, Director General of the British Chambers of Commerce has joined our guest host on set today, Julian Chillingworth, Chief Investment Officer at Rathbone Brothers.

    He says most businesses are ignoring the "noise" coming from politicians and the media. He says early negotiations offer nothing concrete to help firms run day-to-day operations.
    Comment ()
  • Italy's Industry Minister Carlo Calenda says a sudden collapse of Alitalia would be a shock to the country's economy. 

    He warned Italy's GDP would be badly affected by the closure of the flag carrier and supported a six-month Government loan to save the company. 

    Rome has offered up to 400 million euros to Alitalia to keep the company afloat, while an administrator decides whether the airline should be liquidated.

    Source: Reuters 

    Comment ()
  • The former Italian Prime Minister Matteo Renzi is back at the helm of the country's centre-left Democratic Party after he secured a landslide victory in the party's primaries. 

    His return comes ahead of the forthcoming Italian parliamentary elections, which are expected to be held in early 2018.   

    Filippo Taddei, the former Economy Spokesman for the Democratic Party tells the on-air team that Renzi's return will generate stability as it will push political reform back up the agenda.

    He says Renzi's current support for current Prime Minister Paolo Gentiloni will remain.


    Comment ()
  • European future indices suggest a positive open for stocks in a few moments time.



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  • Greece has agreed to sell 66 percent of its natural gas grid by the end of this year. The country will also sell its coal-fired power plants.
    Comment ()
  • BP's key earnings measure, replacement cost profit, has come in at 1 and a half billion dollars, beating expectations and significantly stronger than last year. 

    The oil major has maintained its dividend at 10 cents a share and says it expects CapEx to be in the range of 15 to 17 billion dollars. 

    BP reported first quarter earnings per share of 7.38 cents. on revenue of $56.39 billion.

    That equates to a pre-tax profit of $2.12 billion.

    The firm has said it expects the second quarter production to be roughly in line with the first quarter.


    According to Reuters data, oil prices are around 35 percent above the same levels in the corresponding quarter for 2016.
    Comment ()
  • BP's key earnings measure, replacement cost profit, has come in at 1 and a half billion dollars, beating expectations and significantly stronger than last year. 

    The oil major has maintained its dividend at 10 cents a share and says it expects organic CapEx to be in the range of 15 to 17 billion dollars. 


    Comment ()
  • DSM reported first-quarter earnings of 334 million euros, topping the 329 million euros analysts polled by Reuters were forecasting. Sales came in at 2.1 billion euros, also topping estimates. The only obvious blot on the report card for the Dutch firm was continued weakness in Latin America. 

    British homebuilder Bovis has said it will incur a £2.8 billion hit in relation to the two failed merger proposals from Redrow and Galliford Try during the firm's strategic review in February. Bovis said sales so far this year are in line with expectations, and that the company will be able to deliver on its 2017 guidance. 



    Luxottica's like-for-like sales dropped 3.5 percent in the first quarter, hit by a new policy, which reduces online discounts. The Italian eyewear company also reported first-quarter sales at 2.3 billion euros, in line with expectations. 

    On a constant currency basis sales increased by almost 2 percent, as growth in the European market was offset by weak consumer spending in the United States.

    And one of the world's biggest asset managers, AllianceBernstein, has fired its CEO Peter Kraus and overhauled its board. Kraus, who served as both CEO and Chairman, was terminated from both roles, while nine out of the company's eleven directors were removed. The money manager, which is majority owned by French insurer AXA, has come under pressure along with the rest of the asset management industry and seen tough competition from rivals like Blackrock, which offer more passive investment products. 
    Comment ()
  • Marks and Spencer and Ocado are considering a tie-up, according to a report from the Sunday Telegraph. The deal could result in Marks and Spencer providing online grocery delivery in the United Kingdom. 

    Ocado receiving an obvious boost.


    Over the weekend, Garden center firm Dobbie's announced it would deliver plants using the Ocado logistics team. The pair has signed a 5-year partnership.
    Comment ()
  • The Spanish April manufacturing PMI has risen to 54.5., the highest level since February.
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  • Our top stories after 30 minutes of trade:

    • A first quarter comeback for BP. The British oil major beats expectations, posting replacement cost profits of 1 and a half billion dollars, supported by a better crude price.
    • Shares in Ocado deliver, up more than 8 percent, on a report the company is considering a tie-up with retail giant Marks and Spencer that could see the grocer launch an online food delivery service.
    • Discount downside for Luxottica. The world's biggest eyewear maker misses first quarter forecasts as its curb on promotions weighs on sales. 
    • Shares in Aberdeen Asset Management rise as outflows slow and the Standard Life merger remains on track. Axa also heading higher as its majority owned Alliance Bernstein restructures its leadership.


    Comment ()
  • Karen is updating us on the biggest moves after 30 minutes of trade. Click play to get the freshest price moves, including the stellar rise from logistics firm, Ocado.

    by david.reid
    Comment ()
  • Oil prices have edged down as a recovery in Libyan output and rising U.S. supplies raised worries that OPEC production cuts may not help tighten a bloated market.

    The Organization of the Petroleum Exporting Countries and participating non-OPEC countries meet on May 25 to discuss whether to extend supply caps.


    Comment ()
  • The Italian manufacturing PMI has come in at 56.2, the highest since March 2011.

    The new orders index has risen to 58.5 versus 56.2 in March.

    Anything above 50 indicates expansion.

    Our guest host Julian Chillingworth predicts the euro could rise if European political uncertainty dissipates in the next few weeks.


    Comment ()
  • May Day demonstrations took place all around the world yesterday. Here is an excellent roundup. 

    In Pictures: May Day demonstrations and celebrations from across the globe

    CNBCMay Day Demonstrations and Celebrations from across the globe

    Comment ()
  • The cost of 2-year Greek paper has risen as the yields fall this morning.

    This being put down to the announcement bu the country's Finance minister of a reform deal with creditors.

    The package includes an agreement by Greece to sell off state-owned power plants and mines. Reforms to pensions have also been agreed.


    Comment ()
  • Greece, lenders reach long-awaited deal on bailout reforms

    CNBCGreece and its foreign creditors reached a deal early on Tuesday on a package of bailout-mandated reforms, Greek Finance Minister Euclid Tsakalotos said.
    Comment ()
  • The euro zone manufacturing PMI for April has come in at 56.7, marking a six-year high.

    A few moments ago, the German figure came in at 58.2, matching forecasts.

    The French figure was 53.3, below the forecast of 55.1.
    Comment ()
  • A statement from the European Stability Mechanism team is confirming a preliminary deal agreement with Greece.

    Staff teams from the EC, ESM, ECB and the IMF have reached a preliminary agreement with the Greek authorities on a policy package to support the recovery in Greece, and which will be the basis for concluding the 2nd review of the ESM stability support program. 

    The Greek authorities have confirmed their intention to swiftly implement this policy package. This preliminary agreement will now be complemented by further discussions in the coming weeks on a credible strategy for ensuring that Greece's debt is sustainable.
     
     
     
    Comment ()
  • U.S. futures suggest a pause for breath in stocks when the open later today.

    Stocks could play a cautious tune until tomorrow when the Fed releases their FOMC statement. 

    Expectations are that the Fed will likely reference the fragile nature of the U.S. recovery.


    Comment ()
  • Surprising strength for the April U.K. factory data. 

    The manufacturing PMI figure of 57.3  is the highest in 3 years and surges past the 54.0 consensus forecast.

    Sterling is popping on that news.


    As a reminder, European markets are higher. 



    Comment ()
  • On the data front, Tuesday will see U.S. auto sales figures for April. The number is expected to come in at an annual rate of 17.2 million, compared March’s annual rate of 16.6 million

    On U.S. earnings, major companies set to report before the bell include ConocoPhillips, MasterCard, Merck and Pfizer.

    Apple, Mondelez and Western Union are due to report after the bell.  

    Source: Getty 

    Comment ()
  • U.S. government debt prices were higher on Tuesday morning as investors looked towards the start of Federal Reserve’s two-day policy meeting.

    The Fed is expected to release its decision on interest rates at 2 p.m. ET on Wednesday, although markets expect the central bank to keep rates on hold.

    The yield on the benchmark 10-year Treasury note was higher at around 2.3342 percent, while the yield on the 30-year Treasury bond was also higher at 3.0158 percent. 

    Debt yields move inversely to prices.


    Comment ()
  • The euro zone March jobless rate has come in at 9.5 percent versus 9.5 percent in February.

    The jobless numbers fell by 5,000 in March from February.
    Comment ()
  • President Trump is apparently not ruling out the prospect of meeting North Korea's Kim Jong Un at some stage. 

    Tap play to here the report from the NBC's Peter Alexander. 

    by david.reid

    Comment ()
  • Greek Finance Minister Euclid Tsakalotos says the country has reached an agreement with EU and IMF lenders on its bailout reforms. 

    Speaking after a marathon round of talks, Tsakalotos said "there is white smoke, negotiations on all issues have been completed." The release of the next round of bailout funds was dependent on a deal being reached before July. 

    The ESM said in a statement that the deal, which includes pension cuts and energy market reforms, now paves the way for discussions on debt relief.

    The European Commissioner for Economic and Financial Affairs, Taxation and Customs is welcoming the deal on Twitter.


    Comment ()
  • The euro zone unemployment figure for March has been snappily analyzed by Pantheon Macro.

    The positive trend in the euro area labor market was temporarily halted in March. Unemployment was unchanged in Germany, Spain, and France while it rose slightly in Italy to 11.7%, from 11.5% in February. 

    The rate of Italian joblessness, however, remains lower than its level of 11.8% in the beginning of the year. Burt the news were better in the smaller economies. Unemployment eased in Ireland, Slovenia, Portugal and the Netherlands. Unemployment in Austria, though, increased slightly. 
     
     
    Pantheon says the chart below shows that the trend in Euro Zone unemployment is positive, and the story will persist. 

    Source: Pantheon Macro




    Comment ()
  • U.S. futures suggest a pause for breath in stocks when the open later today.

    Stocks could play a cautious tune until tomorrow when the Fed releases their FOMC statement. 

    Expectations are that the Fed will likely reference the fragile nature of the U.S. recovery.



    Comment ()
  • The euro is trading slightly higher against the dollar as the euro zone jobless numbers hit wires. The jobless numbers fell by 5,000 in March from February.
     
     
     
     
    Comment ()
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