World Markets Live - May 3 - CNBC Live Events
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CNBC Live Events

World Markets Live - May 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 and welcome to the Wednesday live blog:

    • A beat for BNP on the top and bottom line as the CFO tells CNBC a recovery in investment banking revenues has supported earnings this quarter. 
    • Apple CEO Tim Cook blames 'rumors around future products' for missing revenue targets as shares sink after hours, despite beating earnings expectations. 
    • Brent rebounds after hitting its lowest level of the year. A decline in U.S. inventories supports the price but reports of a drop in OPEC compliance keeps investors on their toes. 
    • Brussels reportedly demands a 100 billion euro break-up bill from Britain as Germany and France toughen their stance ahead of formal negotiations.


    Comment ()
  • Tim Cook said yesterday that a repatriation rate between 6.5 and 10 percent would be rational. So that would be a big win for investors.

    Arjun delves in to what it might mean for Apple shareholders if the U.S. government forces firms to bring back overseas cash.
    Comment ()
  • Earnings and auto sales data were influential on U.S. trading yesterday. 

    The NASDAQ managed to hit fresh record highs in the session.  

    Industrials led all sectors, pushed higher by Transports and Airlines, with Delta (DAL), United Continental (UAL), and American (AAL) all gaining more than 4%.  

    Tech moved higher, with the Tech SPDR hitting its highest level since 2000.  


    Comment ()
  • The Trump administration has launched an inquiry into the aluminum industry amid concerns America is overly reliant on foreign imports of the metal. 

    Mike Bless, the CEO of Century Aluminum met with President Trump last week as part of efforts by US producers of the metal to lobby the government for increased protections. 

    Bless is on set telling the team that massive government subsidies over 15 years have allowed China to release more than 4 million tons of exports of aluminum that is distorting market prices.

    We don't want punitive actions, we just want a fairly traded market.

    Bless said the industry has faith in the WTO process to take action against China, but he's concerned that the competition could be crushed if measures are not taken sooner rather than later.

     Mike Bless, the CEO of Century Aluminum with Karen

    Aluminum is about 15 percent higher in price this year and Bless said he expects global demand growth to rise about 6 percent this year.

    Comment ()
  • BNP Paribas has beaten first quarter forecasts on both the top and bottom line as the investment banking unit of the French lender saw a strong performance over 2016.

    The bank recorded first quarter net profit at 1.89 billion euros, much better than analyst forecasts.

    Revenue was 11.3 billion euros.

    Core tier 1 ratio was 11.6 percent in March.

    Nancy asked the French bank's CFO, Lars Machenil if the performance was sustainable

    by david.reid

    Comment ()
  • Hugo Boss has confirmed 2017 guidance to the market after reporting a first-quarter net profit of 45 million euros.

    The firms said sales growth in Europe and Asia managed to "more than compensate" for a fall in sales in the America's.

    2013 Getty Images 

    Comment ()
  • U.S. President Trump and Russian President Vladamir Putin spoke by phone Tuesday for the first time since Trump ordered air strikes on a Syrian airfield in April.  

    According to a White House statement, the Presidents agreed that all parties must "do all they can to end the violence" in Syria.  

    A statement by the Kremlin added that Trump and Putin discussed a possible meeting on the sidelines of the G20 summit in July.

    Russian President Vladimir Putin and German Chancellor Angela Merkel attend a wreath laying ceremony at the Unknown Soldiers's Tomb on May 10, 2015 in Moscow, Russia.

    Meanwhile, German Chancellor Angela Merkel and Russian President Vladamir Putin have met in Sochi, marking Merkel's first visit to Russia since the country annexed Crimea in 2014. 

    The two leaders agreed on the need to continue discussions - despite disagreements over Syria, Ukraine, civil rights and more. 

    Speaking after the meeting, Merkel urged the Russian president to implement the Minsk accords, saying only this would lift EU sanctions.
    Comment ()
  • Alexander P. Bohnekamp, CEO of Dubai-based hospitality group has told CNBC that Trump's travel ban is having an effect on his business. 

    It has an impact and we've seen quite a few drastic changes in the last couple months. At the same time, you learn to adapt to them. 

    At the business volume basis we've taken a hit, but looking forward and all the factors we can see look strong. Having said that, this will also calm down. It's big hype at the moment. We don't have to over-worry but we have to be extremely conscious ton how to deal with those travel issues.

    Middle East hospitality specialist: Alexander P. Bohnekamp

    Comment ()

  • Brussels has reportedly raised the Brexit divorce bill to around 100 billion euros. 

    According to the Financial Times, EU leaders have revised their calculations and are demanding more money from the UK to leave the union and cover their upfront liabilities. 

    The demand is apparently driven by Germany and France and up from a previously suggested charge of 60 billion euros. 

    Will May have to write a bigger check? 

    Comment ()
  • Lundin Petroleum has reported a first quarter EBITDA of 355.8 million dollars versus a Reuters poll expecting 325 million dollars.  

    The company also announced plans to spin-off its Malaysian, French, and Dutch assets into a new entity.


    Company CEO Alex Schneiter is telling the TV team that he sees oil as remaining a central part of the energy mix but methods of extraction and production will have to be more and more efficient.

    Schneiter says in the Barings sea projects, Lundin has a development cost of fewer than 45 dollars per barrel.
    Comment ()
  • Back-to-back first on CNBC interviews as earnings flood the newswires.

    German lighting firm Osram is brightening its guidance after reporting a solid second quarter. Second quarter revenues rose nearly 10 percent to just over 1 billion euros, beating forecasts. 

    On the phone from Munich, Ingo Bank, CFO of Osram, says despite the good results there is some slowdown in the U.S. during the firm's second quarter.

    As regards the "protectionist" policies from te hTrump administration, Bank tells the team that the company's U.S. footprint is well established and as yet, there is no noticeable impact.


    Comment ()
  • London listed grocer, Sainsbury's, has reported an underlying full year pre-tax profit of £581 million. That is a one percent fall on the previous year.

    The straight pretax profit figure is £503 million. This on sales of £21 billion pounds but like-for-like revenues, excluding fuel, has fallen 0.6 percent.

    The firm has cut the dividend to 10.2 pence.

    Live on air is Kevin O'Byrne, CFO at Sainsbury's.

    He tells Karen that the firm is very pleased with the performance of Argos since the acquisition last year.  O'Byrne said that Sainsbury's will now speed up the number of Argos stores that are accommodated within the superstores.

     Kevin O'Byrne, CFO at Sainsbury's

    O'Byrne says petrol prices are clearly very important to bringing customers to stores but the firm hasn't pushed petroleum in to a loss-leading situation.

    On margins, O'Byrne said Sainsbury's have reduced prices to retain customers in the face of competition.

    He says the online business is complicated but is profitable and grew 8 percent last year. 

    O'Byrne says online food represents about 7 percent of the business.

    Comment ()
  • The ITV chief executive officer Adam Crozier is to leave ITV after 7 years.

    He is to leave the TV production company at the end of June and no permanent successor has been named.
    Comment ()
  • Portugal is calling on ratings agencies, such as Fitch and Standard & Poor's, to upgrade the country's sovereign bonds to investment grade. The push comes on the back of a recent rally in Portuguese debt, spurred by the country's improved public finances and economic performance.   

    Joining us on set is Manuel Caldeira Cabral, the Economy Minister of Portugal.

    Cabral tells Geoff that investors and agencies are noticing improvements in the country's fortunes.

    He notes that deficits are falling to within European limits, growth is above 2 percent and unemployment has improved.

     Manuel Caldeira Cabral, the Economy Minister of Portugal.

    On overall debt outstanding, Cabral is forced to admit an increase in debt to GDP at the end of last year but he ascribes this to the forced capitalization of public banks.

    He claims it does not represent a real rise in debt and the trend since 2014 is one of reduced liability.

    It is a public debt to put on a public bank so it is simply moving debt from one side to another.

    Comment ()
  • A reminder of our headlines on a busy earnings morning:

    • Third time unlucky for Sainsbury's. The British supermarket chain posts another year of profit declines and says price pressures remain uncertain. 
    • A beat for BNP Paribas on the top and bottom line as the CFO tells CNBC a recovery in investment banking revenues has supported earnings this quarter. 
    • Cementing gains. LafargeHolcim beats core profit forecasts as the CEO says his departure will not affect the timing of the company's buyback. 
    • Brussels reportedly demands a 100 billion euro break-up bill from Britain as Germany and France toughen their stance ahead of formal negotiations. 
    Comment ()
  • Volkswagen first quarter sales revenue are up 10.3 percent to 56.2 billion euros. The first quarter operating profit is reported as 4.37 billion euros.

    The firm is confirming its 2017 guidance.

    A VW Atlas on display at the New York Auto Show on April 12, 2017.  

    Comment ()
  • The German Finance minister Wolfgang Schaeuble has sent a strong message against protectionism at the B-20 in Berlin. 

    The B-20 is viewed as a business dialogue for the G-20.

    Opening the business summit, Schaeuble said that 'if we've learned anything from the past - it's that nationalism is never the right answer'.

    by david.reid

    Comment ()
  • Allianz has reported a first quarter operating profit of 2.9 billion euros.

    The resulting net profit is 1.9 billion euros on revenue of 32.6 billion. The German insurer is confirming guidance for 2017.
    Comment ()
  • Belgian chemicals group Solvay has exceeded analysts expectations in its first quarter earnings. Core profit rose 12 percent in the first quarter to 616 million euros, compared to the 578 million euro Reuters forecast. Solvay has announced that it now expects to meet or exceed its full-year profit forecast of mid-single digit growth.
     
    Karim Hajjar, CFO, Solvay joins us live to discuss the numbers:
     
    The strength that you see is pretty broad based. Clearly we see a lot of quality with the volume. The other aspect of our strong performance was that we now have very strong cash flow in the first quarter which is now 3 times higher than the previous record for Q1 which was back in 2012.
     
     
    We are seeing in businesses that are close the commodities end are progressing significantly despite the concerns many pundits had about their ability to expand.
     
    Comment ()
  • European markets are now open for trading. The pan-European Stoxx 600 has opened slightly lower as investors focus on earnings:
     
     
    Comment ()
  • Apple's fiscal second-quarter earnings topped analyst expectations, but revenue fell short, as the tech giant reported a fall in iPhone sales for the period. 

    The company's cash pile rose to a record $256.8 billion dollars, a more than $10 billion increase from the first quarter. 

    Shares of Apple fell as much as two percent in after-hours trade.


    CEO Tim Cook blamed the sluggish iPhone sales on people waiting on a new product.


    Comment ()
  • Major European indexes are slowly waking up in negative territory this morning as investors digest the latest in Brexit negotiations and focus on corporate earnings.
     
     
     
     
    Comment ()
  • Let's take a look at the best and the worst performing stocks this morning. Global healthcare firm Novo Nordisk is at the top of the Toxx 600, up about 4 percent this morning. Meanwhile, Dialog Semicon is down 5 percent, at the bottom of the Stoxx 600:
     
    Comment ()
  • BNP Paribas has exceeded expectations to post a 4.4 percent rise in first quarter profits. This thanks to a boost in its fixed income and equities trading units. The strong figures helped offset a weaker performance in the lender's French and Italian retail banking divisions, which saw revenues drop.    
     
     
     
    Comment ()
  • Sainsbury's has reported its third straight year of profit decline, although the drop was less than expected by analysts. 

    The British grocer warned competition would continue to remain high in the UK, while the impact of cost price pressures was uncertain. 

    Shares in the supermarket are off 1.5 percent this morning.


    Sainsbury's CFO Kevin O'Byrne told this program that the numbers were improving.

    by david.reid

    Comment ()
  • Shares in Dialog Semicon slide more than 3 percent after surprise dip in iPhone sales at Apple:
     
     
    Comment ()
  • Volkswagen has reported a strong set of results in the first quarter with a 40 percent increase in operating profit. The German automaker said results were boosted by cost savings in its core division.
     
     
    Comment ()
  • Lafargeholcim has beaten first quarter estimates to post adjusted operating profits of 801 million Swiss francs. The world's largest cement maker also surpassed sales expectations, ahead of its search for a new CEO to replace current boss Eric Olsen. This after the company revealed it made payments to armed groups in Syria to keep its local factory running. 
     
     
    Comment ()
  • Britain's Brexit Minister David Davis says we are not going into Brexit negotiations as a supplicant. In an interview with BBC Brexit Minister Davis says it is not for EU negotiations to decide how the whole thing works.
     
    The Minister also says we have no intention of trying to divide and conquer in Brexit talks. That's according to Reuters citing a BBC Interview.
     
    The intention is to give EU citizens already living in UK a generous settlement post-Brexit, with rights similar to those they enjoy now.
    Comment ()
  • Joe Prendergast is Head of Financial Market Analysis at Credit Suisse and joins the Squawk Europe team from Zurich.

    Today we hear the latest U.S. Federal Reserve decision and statement. Prendergast says he doesn't expect much in the way of tightening rhetoric given the recent soft data. He certainly expects no action today.

    He does argue that the Fed may still tighten rates a little faster than the market is currently pricing in.

    Joe Prendergast: Markets still behind Fed curve 

    Prendergast says oil is suffering from the high level of crude available for immediate delivery and price is very sensitive to inventory data.

    He says if oil can sustain a $50 dollars per barrel level then he expects supply discipline to be maintained by producing countries.

    Comment ()
  • Brexit Minister David Davis is speaking to BBC about leaving the EU. He says Brexit will be a matter of negotiation and it is not looking more likely that we will leave the EU without an agreement. That's according to Reuters.
    Comment ()
  • Hugo Boss posted better than expected sales and net profit in the first quarter, boosted by a growth in the British market. The German fashion house said net profit increased by 25 percent, while sales were up 1 percent, beating expectations. Hugo Boss also reconfirmed its 2017 outlook.
     
     
    Comment ()
  • Fresenius reported a strong set of numbers in the first quarter with a double digit increase in profit and sales. The German healthcare group posted a 28 percent increase in quarterly net profit, while sales were up 19 percent. Earnings before interest and taxes also increased 27 percent. 
     
     
    Comment ()
  • Novo Nordisk shares have raced ahead this morning after raising guidance for the whole of 2017.

    The world's biggest diabetes drug maker reported a better-than-expected 10 percent rise in first-quarter operating profit, driven by new product sales and cost cutting.


    Comment ()
  • Here are your top headlines at this hour:
     
    • Third time unlucky for Sainsbury's. The British supermarket chain posts another year of profit declines and says price pressures remain uncertain. 
    • Apple CEO Tim Cook blames 'rumours around future products' for missing revenue targets, despite beating earnings expectations. Shares sink after hours and suppliers fall in Europe. 
    • A shot in the arm for Novo Nordisk. Shares top the Stoxx 600 after profits beat forecasts and the drugmanker raises its outlook. 
    • Hugo Boss shares fall out of fashion despite a recovery in sales in the U.K. and China. The stock sinks to the bottom of the European market despite earnings beating expectations. 
       
    Comment ()
  • Let's break down the sectors in the European stock markets this morning to see what's leading the gains and losses. Healthcare is the best performing sector this morning, up 0.6 percent, led by Norvo Nordisk. Meanwhile, Basic Resources is down more than 1 percent, followed by Autos that are down 0.8 percent:
     
     
    Comment ()
  • After 30 minutes of trade, we are witnessing a modest retreat on stock markets in Europe.  

    Karen gives us a quickfire run through. Click play to hear it.

    by david.reid

    Comment ()
  • Novo Nordisk shares have raced ahead this morning after raising guidance for the whole of 2017.

    The world's biggest diabetes drug maker reported a better-than-expected 10 percent rise in first-quarter operating profit, driven by new product sales and cost cutting.


    Live on air is Jesper Brandgaard, CFO at Novo Nordisk.

    He says the company is increasing transparency by refining the margins on its outlook. He says pricing in the U.S. is a difficult variable to nail down as the emergence of competitors remains unclear.

    Brandgaard says it has already offered a more competitive price to U.S. consumers and in biopharma, the underlying growth could be as high as 3 percent in 2017.

    Jesper Brandgaard, CFO at Novo Nordisk (R)

    The Novo Nordisk CFO tells Geoff he sees no clarity yet on the much-discussed US healthcare reform. 
    Comment ()
  • Shares in Apple's German listing are trading sharply lower after the tech giant reported a fall in second quarter iPhone sales. The news is also hitting Europe's biggest chipmakers. This despite earnings topping analyst expectations as the company's cash pile rose to a record 256.8 billion dollars. That's more than a 10 billion dollar increase from the first quarter. 
     
    Arjun joins us on the set to tell us more:
     
     
    I think the market was generally expecting a bit of a non-event, pretty quiet and that is exactly what we got, pretty tepid iPhone sales but we got strong points such as services, other emerging markets such as India, China still a worry and iPad revenues down. 
     
     
     
    Comment ()
  • Marks & Spencer has appointed Jill McDonald to run its clothing business.

    McDonald will join M&S in the autumn after leaving as boss of the U.K.'s largest bicycle seller, Halfords.

    She previously was the boss of the British division of namesake fast food chain, McDonald's.

    The arrival hasn't gone down well with stockholders of M&S.


    Comment ()
  • German April seasonally adjusted jobless total falls to 2.569 million from 2.662 million in March. The country's seasonally adjusted jobless rate steady at 5.8 percent. That's according to Reuters.
     
    Comment ()
  • Shares in Hugo Boss see sharp losses this morning despite the company posting better than expected sales and net profit in the first quarter, boosted by a growth in the British market.
     
    The German fashion house said net profit increased by 25 percent, while sales were up 1 percent, beating expectations. Hugo Boss also reconfirmed its 2017 outlook.
     
    The company;s CEO says expects improvements in U.S> business in H2, but only return to growth in 2018:
     
     
    Comment ()
  • Here are your top headlines at this hour:
     
    • Third time unlucky for Sainsbury's. The British supermarket chain posts another year of profit declines and says the impact of price pressures remains uncertain. 
    • Apple CEO Tim Cook blames 'rumours around future products' for missing revenue targets, despite beating earnings expectations. Shares sink after hours and suppliers fall in Europe. 
    • A shot in the arm for Novo Nordisk. Shares top the Stoxx 600 after profits beat forecasts and the drugmaker raises its outlook. 
    • Hugo Boss shares fall out of fashion despite a recovery in sales in the U.K. and China. The stock sinks to the bottom of the European market as investors shrug off better than expected earnings.
       
    Comment ()
  • European shares have slipped from a 20-month high as earnings fail to inspire:
     
     
    Comment ()
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