World Markets Live - May 4 - CNBC Live Events
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CNBC Live Events

World Markets Live - May 4

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

  • Now on the phone with Geoff Cutmore is Iain Mackay, CFO of HSBC.


    He's arguing the numbers represent stable and positive progress.

    On Investment banking, he says FICC has performed well in the first quarter but it is fair to say there is a fair bit of volatility in this area throughout 2017.

    On Risk-Weighted Added (RWA) reduction he says it is not about shrinking HSBC but looking at where there is less profitable activity.

    On retail banking, the HSBC man says it performed well in both Asia and the United Kingdom and is operating within the parameters the bank had set out.

    One of the things we focus on is living within our risk appetite.
     

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  • On litigation measures and fines that HSBC faces, the CFO says it is difficult to know exactly what to expect but the bank's focus is on delivering the requirements of the "deferred prosecution requirements" of the United States.

    Iain Mackay finished the interview with a round up of the geographical focus the bank will deliver.

    He says the U.K. will be interesting, Mexico is undergoing transition, Canada is doing well in Q1 and Asia represents a significant opportunity.

    If you want to orientate in a region where we have great strength and we see opportunities, it is Asia.
     

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  • As we hit the top of the hour, here are our top stories:

    • Europe's biggest bank, HSBC, sees a near 20 percent drop in first-quarter pretax profit. But it beats expectations as trading revenues support earnings, despite a mixed growth picture. 
    • Investors focus on the negative at Facebook as the social network reports a surge in profit, but shares sell down on concerns over revenue growth. 
    • The final face-off before the run-off. Emmanuel Macron tears into Marine Le Pen's plans for the Euro, while she remains confident of her path to the Elysee. 
    • The Republicans call a fresh vote on healthcare, confident they have support to pass President Trump's reform and repeal of Obamacare.


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  • Societe Generale numbers have hit the wires.

    The net income is down 19 percent to 747 million euros, while the revenue has risen 4.8 percent to 6.47 billion euros.

    The first quarter operating expenses are up 8.4 percent.

    On set, Steve says he sees little to make you buy or sell the stock.
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  • Siemens have also reported for their second quarter.

    The German industrial firm has hit a net profit of 1.45 billion euros, just edging past a Dow Jones forecast.

    The firm has reiterated its full year guidance.

    Orders fell 38 percent at its power and gas division but renewables and wind power saw a 48 percent rise in orders.
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  • HSBC's first quarter pre-tax profit fell 19 percent to just under five billion dollars. That figure topped estimates of analysts polled by Reuters, who were expecting 4.31 billion dollars. 

    Shares in the Hong Kong listing are currently higher by around 2 percent.


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  • Tesla shares have fallen in extended-hours trade.

    This after the electric carmaker posted a wider-than-expected first quarter loss.

    Tesla posted a wider-than-expected first-quarter loss, but more than doubled revenue from a year ago, as record deliveries boosted sales.

    The company also said its Model 3 remains on track to begin production in July. 

    Tesla has been spending heavily as it works to stick to its production deadline for the mass-market electric sedan.


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  • Facebook shares fell from an all-time high in after-hours trade, despite posting a big earnings beat. First quarter revenue rose around 50 percent year on year to just over 8 billion dollars.

    The company added 80 million monthly users in the first few months of the year, as ad revenue popped 51 percent from a year ago.

    But shares dipped in after-hours trade, as investors digested a new format for the company's earnings report. 

    Facebook said it is no longer reporting adjusted expenses, income, tax rate, and earnings per share that are not in line with generally accepted accounting principles.



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  • And the earnings keep on coming.

    AB Inbev has reported a lower than expected profit in the first quarter. 

    The world's largest brewer saw performance slip in Brazil and the United States, two of its largest markets.

    The revenue was $12.92 billion, which matched a Reuters forecast.
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  • Statoil has posted an adjusted operating profit of $3.3 billion in the first quarter,  well above analyst expectations for 2 point 67 billion dollars.  

    The Norwegian oil company maintained its outlook guidance saying higher crude prices and organic production growth were boosting stronger cash flow.

    Joining us on the phone from Oslo is Eldar Sætre, the CEO of Statoil.


    He says the numbers encouraging despite the pressure of a relatively subdued oil price.

    He says there is still a lot of uncertainty over the oil price and with $11 billion of investment to come this year, the plan must be to manage the ship tightly.

     Sætre says the joint work with Rosneft is progressing well but he doesn't elaborate on any successful extraction that the related wells have produced.





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  • Carlsberg has reported a first-quarter revenue figure of 14. 7 billion Danish crowns, which is a beat despite a tick down in volume production. 

    The company is maintaining a 2017 target, including a mid-single percentage organic growth in operating profit.


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  • The German sportswear company Adidas has reported a first quarter net profit of 455 million euros and is backing its 2017 view.

    That net profit has beat analyst expectations.

    The firm says sales were up 19 percent in the first quarter to 5.67 billion euros.
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  • BMW has reported a first-quarter profit of 2.15 billion euros.

    Not much more to add at this stage.
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  • A quick break from the rush of earnings.

    French Presidential candidates Marine Le Pen and Emmanuel Macron squared off in their final TV debate ahead of the second round of voting in France's Presidential election on Sunday.
     

    The two candidates clashed on security, the economy, and their visions for France in the world.

    In his criticism of his rival, Macron accused Le Pen of wanting to close France off from the rest of Europe. 

    What you carry is the spirit of defeat. It's to tell our citizens 'globalization is too hard for us, Europe is too hard, so we are going to fall back and close our borders. We'll exit the Euro, exit Europe, because others can succeed but not us.' It's a spirit of defeat in the fight against terrorism, because this fight - every country is facing it. Every democracy has to confront it.
     
     
     Le Pen fired back, accusing Macron of fostering "unbridled globalization."

    A snap opinion poll conducted by Elabe for French television showed 63 percent of viewers found Macron more convincing than Le Pen.


    Join us on Sunday for live coverage of the final round of the French Presidential election. We'll have reaction from across Paris as Marine Le Pen faces off against Emmanuel Macron. 

    That's May 7th from 19:30 CET - We will have a special program, which will also be streamed online, and added coverage on this blog. 


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  • HSBC has reported first-quarter results of $5 billion for profit before tax, down 19 percent from a year ago.

    The bank's reported revenue came in at $13 billion in the first quarter, 13 percent lower than the same period a year ago.

    HSBC said it has completed a $1 billion shares buy-back program that it announced in February.

    CEO Stuart Gulliver said "this is a good set of results" and explained that reported profits were down due to a change in accounting treatment of the fair value of its own debt.

    The full story is available here.
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  • The Fed kept interest rates on hold at its May meeting Wednesday but maintained expectations for further 2017 rate hikes.   

    In a unanimous statement -- the committee said it "views the slowing in growth during the first quarter as likely to be transitory" adding it believes the fundamentals underpinning continued growth of consumption remained solid.

    Joining the team is Richard Hodges, Head of Unconstrained Fixed Income at Nomura Asset Management.


    He says Yellen has been looking at near term influences and he says that means Friday's jobs report will need to be strong for the market to believe in a June rate hike.

    Hodges said the market is looking for stronger growth and it may not occur unless Trump's infrastructure plan can kick in to any degree.

    Comment ()
  • A reminder of our top stories at this hour:

    • Europe's biggest bank, HSBC, sees a near 20 percent drop in first-quarter pretax profit. But it beats expectations as trading revenues support earnings, despite a mixed growth picture. 
    • Net profit at Socgen falls 19 percent in the first quarter as the French bank raises its provision for a legal dispute with the Libyan Investment Authority. 
    • eCommerce puts a spring in Adidas' step as net profits rise 30 percent, helped by online sales and strong demand in North America. 
    • The U.S. and Brazil give AB Inbev a headache as earnings slip in the brewers two largest markets, despite the tie-up with SABMiller progressing well. 
    • The final face-off before the run-off. Emmanuel Macron tears into Marine Le Pen's plans for the Euro, while she remains confident of her path to the Elysee. 

    Comment ()
  • Royal Dutch Shell has reported a first quarter revenue of $71.8 billion with a pre-tax profit of $3.37 billion.

    Dividends distributed totaled $3.9 billion.

    The company has a free cash flow of $5.2 billion.


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  • Glencore has offered a full-year earnings before interest and tax of $2.3 billion to $2.6 billion. That range is slightly higher than previously announced.
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  • We are net short commodities. We are short copper and we are short oil.
     
     
     

    Patrick Armstrong, CIO, Plurimi Investment Managers is our guest host and says it is clear that there is enough supply of commodities to meet current global demand.


    Armstrong says he has no position on oil and gas companies but sees them as relatively fair value.
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  • The net result of that earnings deluge appears to be a relatively positive open for European stocks in just under 45 minutes time.

    The chart below offers the current price of the major index futures.


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  • The British Prime Minister Theresa May is accusing EU politicians of making threats against the UK in a bid to influence the country's election and undermine Brexit. 

    Mrs May told reporters:  

    There are some in Brussels who don't want these Brexit talks to succeed.
     
     
     

    Her comments come in the wake of reported remarks from European Commission President Jean-Claude Juncker describing the British Prime Minister's expectations for Brexit as "deluded".    

    Outside Buckingham Palace, Willem Marx says May has stirred up a hornets' nest with domestic opponents who accuse her of playing politics with Brexit.


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  • Alstom has reported a 15 percent increase in full-year EBIT to 421 millions euros. The French train maker also confirmed its 2020 sales growth projections and margin targets. 

    Comment ()
  • French Presidential candidates Marine Le Pen and Emmanuel Macron squared off in their final TV debate ahead of the second round of voting in France's Presidential election on Sunday. 

    The two candidates clashed on security, the economy, and their visions for France in the world.

    In his criticism of his rival, Macron accused Le Pen of wanting to close France off from the rest of Europe. 

    Le Pen fired back, accusing Macron of fostering "unbridled globalization."

    A snap opinion poll conducted by Elabe for French television showed 63 percent of viewers found Macron more convincing than Le Pen.


    Famke Krumbmüller, Partner at OpenCitiz is with Claire Fournier in Paris. 

    OpenCitiz is a consultancy specialised in political risk and public policy consulting in Europe.


    Krumbmüller says at times Macron appeared a little arrogant but only to the extent that he was explaining errors from Le Pen.

    Krumbmüller says Macron clearly won the debate.


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  • Oil is under a little pressure this morning. Potentially dollar strength is the cause and that may reflect renewed faith in a June rate hike from the Federal Reserve. One to watch.

    High stocks of crude have been keeping a lid on prices in recent sessions.


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  • On balance stocks in Europe are marginally higher.



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  • Earnings for the likes of Shell and Statoil helping to push the oil and gas sector to the slot of best performer.




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  • Shell has reported a sharp increase in quarterly net profit, beating expectations. This due to stronger oil prices and better refining margins. First-quarter net income rose 136 percent, topping estimates.

    Adidas has scored larger than expected sales and profits during the first quarter. This thanks to stronger growth in online trading and a boost to its North American performance. The German sportswear brand confirmed its 2017 outlook, saying it expected sales to rise by 11 to 13 percent. 


    BMW has posted record first quarter automobile sales as net profits jumped by 31 percent to 2.15 billion euros. This thanks to one-off gains, which offset weaker margins from higher development costs incurred by boosting investment in self-driving technology. The German carmaker kept its outlook unchanged for the year, adding it predicts a slight increase in profits. 

    Glencore has raised its full-year marketing EBIT guidance to between 2.3 billion and 2.6 billion dollars. This as the miner reported mixed production numbers -- with copper output 3 percent lower from a year ago, but coal and zinc production up 4 and 9 percent respectively. 

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  • Societe Generale has reported a 19 percent drop in first-quarter net income, missing expectations, due to increased legal costs. 

    The French bank has raised its legal provision by 350 million euros to cover the bill for a legal case with the Libyan investment authority. 

    But SocGen says it has signed a settlement with the sovereign wealth fund in a case that dates back to 2007. 

    The bank is giving back some of its recent gains this morning.


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  • HSBC's first quarter pre-tax profit fell 19 percent to just under five billion dollars. That figure topped estimates of analysts polled by Reuters, who were expecting 4.31 billion dollars. 

    That report card is helping to earn HSBC a slot on Europe's best performers list.



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  • The Swedish biometrics firm Fingerprint are in the last place across European top stock share movements this morning. The company posted a Q1 operating profit below analyst forecasts, despite sales being roughly in line.

    Next in trouble too. The firm has refined the top end of its guidance lower.

    Comment ()


  • Anheuser-Busch InBev posted a near 6-percent rise in core profit, but missed expectations as weaker earnings in the US and Brazil weighed on the first quarter. But the world's largest brewer reported total quarterly volumes above estimates and say it expects revenue growth to accelerate this year.

    Carlsberg sales beat expectations in the first quarter. The Danish brewer reported organic revenue growth of 4 percent, despite flat volumes. Carlsberg's CEO reaffirmed the company's full-year outlook, saying it was on track to achieve mid-single-digit growth in operating profit.

    Telecom Italia has posted a 16 percent increase in core earnings in the first quarter. This as the company is going to hold its general annual meeting later today.

    Siemens has surpassed second-quarter expectations for orders, revenues and profits. The German industrial group saw a strong performance in most of its units apart from its healthcare business, which it plans to spin-off. Siemens reaffirmed its full-year forecasts on the back of the results. 
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  • The French market has hit its highest level since January 2008. That a likely backing of Macron's performance against Marine Le Pen last night in a televised debate.


    The peripheral markets are also higher with the exception of Portugal.  


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  • A reminder of our top stories after 30 minutes of trading on a busy earnings day.

    • Europe's biggest bank, HSBC, sees a near 20 percent drop in first-quarter pretax profit. But it beats expectations as trading revenues support earnings, sending shares higher in Hong Kong and London. 
    • Net profit at SocGen falls 19 percent in the first quarter as the French bank raises its provision for a legal dispute with the Libyan Investment Authority. 
    • Shell posts a 130 percent jump in net income as the recovery in the crude price helps the oil major boost profits ahead of expectations, while refining margins improve. 
    • The U.S. and Brazil give AB InBev a headache as earnings slip in the brewers two largest markets, despite the tie-up with SABMiller progressing well. 
    Comment ()
  • The dollar has pushed higher after the Federal Reserve played down recent softer U.S. data.

    This caused markets to believe a June rate rise remains on the table. Gold and oil have retreated as they are priced in dollars. 


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  • Apparently, the health of the Queen or her husband Prince Philip is not in question. 

    A sizable chunk of U.K. media is camped outside Buckingham Palace, hoping for a story.


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  • Good numbers for Italy.

    The April services PMI jumped to 56.2  versus a forecast of 53.5. That is the highest level since August 2007.

    Despite dollar strength, the euro has enjoyed a pop following that data.


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  • French Presidential candidates Marine Le Pen and Emmanuel Macron squared off in their final TV debate ahead of the second round of voting in France's Presidential election on Sunday. 

    The two candidates clashed on security, the economy, and their visions for France in the world.

    In his criticism of his rival, Macron accused Le Pen of wanting to close France off from the rest of Europe. 

    Le Pen fired back, accusing Macron of fostering "unbridled globalization."

    A snap opinion poll conducted by Elabe for French television showed 63 percent of viewers found Macron more convincing than Le Pen.


    Jean Messiha, Project Coordinator for Front National is with Claire Fournier in Paris.
    Messiha says he is not concerned with the media take on last night's debate.

    The Le Pen adviser says he plan for Front National is to renegotiate the EU project and the euro is "exploding".

    Messiha says Macron has not really articulated a view for France as he is "imprisoned" by multiculturalism.

    He says even if Le Pen does not win the presidency on Sunday the party will still be a winner. National Front has 2 current MP's and Messiha predicts this could rise by a factor of ten at least.


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  • European markets are higher this morning with Germany hitting a record high and the French index at a level not seen since January 2008. 



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  • Britain's key PMI data is services as the sector dominates U.K. output. The data is due out in 7 minutes.

    Economists polled by Reuters expect the April reading to slip slightly from March's figure.

    Sterling is a touch up on the dollar ahead of the data. This after a recovery from a big dollar move in the wake of the latest Federal Reserve decision yesterday.



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  • U.S. stock index futures pointed to a higher open on Thursday morning as traders looked to another big day of U.S. corporate earnings and several pieces of data. 

    Kellogg, Regeneron, Viacom, AMC Networks and Dunkin Brands are among companies set to report before the bell. Activision Blizzard, CBS, El Pollo Loco and Shake Shack are among companies due to report after the bell. 

    On the data front jobless claims, international trade and productivity and unit labor costs are all set to come out at 8:30 a.m. ET. Factory orders are due at 10:00 a.m. ET. 

    Comment ()
  • The U.K. services PMI has come in better than expected for April.

    It is 55.8 versus 55.0 in March.

    It beat forecasts of 54.6.

    Sterling moved higher into the data and has stayed at those levels.


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  • A lot of chatter about the state of autos in the U.K.

    New car registrations fell 19.8 percent in April, the Society of Motor Manufacturers and Traders (SMMT) says.

    There were 152,076 registrations, with demand down from private buyers, businesses and large fleets.

    Year-to-date U.K. car sales are up 1.2 percent.

    The BMW CFO has told reporters that the company has seen the U.K. market "come under pressure" in April.

    Certainly a sector to keep tabs on.

    Is the U.K. auto market hitting the skids? 

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  • Gold has held near a six-week low hit as expectations persist that the U.S. Federal Reserve will raise interest rates as early as June. That, in turn, boosted the dollar which gold is priced in.



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  • Is this the talk of a winner or a loser?
    Comment ()
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