World Markets Live - May 8 - CNBC Live Events
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CNBC Live Events

World Markets Live - May 8

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 World Markets Live. We'll begin full blog coverage from 0600 BST.
     
    For now, here are the opening calls for Europe.
     
     
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  • These are the top headlines this morning.
     
    • Viva Europe as Emmanuel Macron wins the French election, sending a wave of relief across the EU and driving the euro higher.
    • Congratulated and condemned. Macron's victory receives a mixed response, as most international leaders welcome his triumph while unions call mass action against him today.
    • A battle lies ahead as he looks to build a position for his party in Parliament, with early polls suggesting En Marche could fall short of an outright majority in the lower house.
    • And stocks in Asia show the first risk-on moves, with the Nikkei trading higher while European futures are positive.
     
     
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  • Emmanuel Macron has been elected the President of France, after a fierce election campaign that exposed bitter divisions across the country.
     
     
    With nearly all votes counted, Macron won 66 percent of the vote, while rival candidate Marine Le Pen won 34 percent, a record for the National Front.
     
    The euro bounced on the result, hitting a six month high versus the dollar. It is pulling back this morning on profit-taking.
     
     
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  • Further protests and demonstrations are expected across France today as the country's hardline Trade Union - the CGT - has called on members to mark the start of Macron's presidency. This follows clashes in Paris between police and anti-fascist groups in the aftermath of the vote on Sunday. Protesters started fires and lit flares as they squared up to security forces.
     
    But what's next on the agenda for the President-elect? The expected inauguration date is next Sunday, the 14th of May. That will be followed by the appointment of a new Prime Minister the following day, who will subsequently form a government.
     
    Macron then faces what is seen as his first big challenge, the legislative elections, with the first round on the 11th of June and the second round falling on the 18th of June.
     
     
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  • Bruno Cautrès, research fellow at Cevipof, says Macron’s victory brings hope and optimism for France, as well as question marks.
     
    The big score that Emmanuel Macron got yesterday, 66 percent which is just absolutely amazing. He’s not only the youngest French president that we’ve had but also it’s probably one of the biggest victories in the history of the fifth republic. 
     
    But that big victory is also going to raise extremely big questions very soon. Who is going to be the prime minister of Emmanuel Macron? Can Emmanuel Macron get a majority (in parliament)?
     
     
     
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  • The result of the French presidential election led to a relief rally in Asian markets. Stocks in the region were also boosted as it was the first trading day since the release of U.S. nonfarm payrolls data on Friday.
     
    The Chinese stock market faltered, hit by the fall in copper prices.
     
     
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  • Leaders from across Europe have congratulated Emmanuel Macron on his win, with many touting the importance of his victory for the future of Europe.
     
    European Commission President Jean-Claude Juncker said he was "delighted" that Macron defended a "strong and progressive Europe."
     
     
    Meanwhile U.K. Prime Minister Theresa May offered her "warm" congratulations, tweeting that she looked forward to working with the President-elect.
     
     
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  • Emmanuel Macron spoke with Angela Merkel following his election victory.
     
    German Chancellor Merkel's spokesman Steffen Siebert tweeted his congratulations, saying Macron's victory was a victory for Europe. 
     
     
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  • The euro hit a one-year high against the Japanese yen on the result of the French election.
     
    The euro is slipping downwards today on profit-taking and limited scope for further upside, according to analysts.
     
     
     
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  • French President-elect Emmanuel Macron has promised an attempt to heal divisions in the country that saw voters spoil 12 percent of the ballot -- a record high. Addressing supporters after his victory, Macron said he respects those who are angry with the status quo and those who voted for Marine Le Pen.
     
    Meanwhile, Le Pen addressed supporters soon after the first projections came in and quickly pivoted the narrative to the legislative elections in June. She positioned herself as the leader of the opposition and urged supporters to cement a change in French politics.
     
    Here's a graphic showing which areas of the country voted for Macron and Le Pen.
     
     
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  • CNBC’s Steve Sedgwick discusses the next steps for Marine Le Pen following her election defeat.
     
    The Marine Le Pen camp didn’t fight this campaign as a Front National candidate, she abstained from being part of Front National for the term of this election. So she’s talking now about building up a broader front as well.
     
    What if she fights the next election not as Front National but as another party? She’s looked at what En Marche has done and said “OK, we can do this from semi-scratch.”
     
    Steve predicts this new movement could learn from En Marche and move the rhetoric towards the left from the extreme hard right of Front National.
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  • Andrew Mulliner, fixed income fund manager at Henderson Global Investors, discusses where French bonds will go following the election result.
     
    Most of us in the markets expected this outcome yesterday. In reality we see most of the tightening we’ve seen in the OAT/Bund spread has probably happened and although there may be a little bit of follow through, in reality the markets were expecting this and we’ll see a gentle open.
     
     
     
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  • The ECB's Yves Mersch says the recovery in the euro area is gaining more and more traction and that the confirmation of a broadly balanced risk outlook for growth is within reach, according to Reuters.
     
    Mersch adds that any discussions around rate normalisation should take place in a structured, orderly and prudent manner.
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  • AkzoNobel has rejected a third takeover offer from PPG saying it will not engage in talks.
     
    The Dutch paint maker said the near 27 billion euro offer still undervalues the firm and it would be pursuing its own growth strategy. PPG now has until the 1st of June to decide on whether to make a formal bid without the support of AkzoNobel executives.
     
    The CEO of AkzoNobel said it met with PPG's CEO Michael McGarry on May 6th and adds that this meeting convinced AkzoNobel to reject the offer. 
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  • These are the headlines for the next hour.
     
    • Viva Europe as Emmanuel Macron wins the French election, sending a wave of relief across the EU and driving the euro higher.
    • Congratulated and condemned. Macron's victory received a mixed response, as most international leaders welcome his triumph while unions call mass action against him today.
    • A battle lies ahead as he looks to build a position for his party in Parliament, with early polls suggesting En Marche could fall short of an outright majority in the lower house. 
    • And stocks in Asia show the first risk-on moves, with the Nikkei trading higher while European futures are positive.
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  • Pierre-Yves Gauthier, founding partner at AlphaValue, suggests investors should buy smaller companies and Eurozone stocks to capitalize on the French election result.
     
    You tend to buy smaller companies, to the extent that this labor cost subject is more obviously central for smaller companies and I would add to that buy the Eurozone as well, because clearly the context for growth in Europe looks much better than it would have been (if Le Pen won).
     
     
     
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  • CNBC's Karen Tso spoke to people at Macron's celebration last night about what his election meant for France

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  • The major European bourses are called higher according to future values. The markets are being boosted from the election victory of Emmanuel Macron.
     
     
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  • Answering the question of whether a strong euro would make France less competitive, Pierre-Yves Gauthier, founding partner at AlphaValue, discusses the transformative effects of a strong currency and the impact of the euro on the French economy.
     
    There is one thing I do believe, which is to have a strong currency forces people to adapt. We said that two unlucky governments, Sarkozy’s and Hollande’s, because they had to adapt. It’s a very slow process, but France had to adapt as an economy. So the euro… is a proper catalyst that forces a re-foundation effect of the French economic system. So a strong euro should not be a problem.
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  • The 10-year OAT-bund spread tightened after the fixed income market opening, following the result of the French presidential election.
     
     
    The bond market reaction to Macron's win has been muted, as traders are still concerned about the upcoming French parliamentary elections and economic risks facing the country.
     
     
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  • CNBC’s Willem Marx says several figures in Brussel’s are delighted with the result of the French presidential election.
     
    I think the landslide victory that we’ve seen is something they’ve been pretty relieved about. We’ve heard from Juncker saying that he’s happy France has chosen a European future. One of the big concerns for Brussels was the difference in stance on Europe between Macron and Le Pen.
    Willem also reported on Donald Tusk’s response to the results. Here's what Tusk said on Twitter.
     
     
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  • As part of his election manifesto, Emmanuel Macron has pledged to reform France's labour market, unify the country's pension plans, and reduce the budget deficit, as economic disenchanment has grown during Socialist President Francois Hollande's tenure.
     
    Pierre Moscovici, European Commissioner for economic and financial affairs, taxation and customs, shares his reaction to Macron’s victory.
     
    It’s a very important victory for the French people, for French values, liberte egalite fraternite, which were threatened by the National Front which wanted France to become a xenophobic, defeatist, closed to globalization country. And the French chose the open air. 
     
    Moscovici added that its also a victory for those want France to be at the heart of the European Union and the G7.
     
     
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  • Big investors urge Trump to stick with Paris climate accord

    Investors with more than $15 trillion of assets under management urged governments led by the United States to implement the Paris climate accord to fight climate change despite U.S. President Donald Trump's threats to pull out.
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  • European markets are now open for trading with the pan-European Stoxx 600 opening slightly higher after Emmanuel Macron won the French Presidential elections on Sunday.
     
     
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  • European markets have opened a bit muted this morning as investors priced in a Macron victory:
     
     
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  • Much of the Macron victory had already been priced in by the markets and hence some muted reaction this morning. The Stoxx European banking index is seeing slight gains this morning as compared to the rally two weeks ago:
     
     
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  • Seema Shah, global investment strategist at Principal Global Investors, explains why this morning's stock market reaction to Macron's victory in the French elections has been muted.
     
    It’s a relief, but this was pretty much priced in for the past two weeks after the first round vote came in. So we haven’t seen as great a move as maybe we would have hoped about a month ago, but it’s already happened, the market’s already moved on and now the market has to think about what’s next.
     
     
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  • AkzoNobel has rejected a third takeover offer from PPG saying it will not engage in talks. The Dutch paint maker said the near 27 billion euro offer still undervalues the firm and it would be pursuing its own growth strategy. PPG now has until the 1st of June to decide on whether to make a formal bid without the support of AkzoNobel executives.
     
     
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  • Lloyds' Finance Director George Culmer could be appointed temporary CEO, if the current CEO Antonio Horta-Osório leaves the company. This according to The Times newspaper. Lloyds' potential contingency plan follows speculations that Horta-Osório could quit after the British Government completes the sale of its shares in the bank.
     
     
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  • Seema Shah, global investment strategist at Principal Global Investors, says markets can now start to ignore political uncertainty.
     
    For the past quarter, we’ve been seeing better growth coming through but people have been holding back from really getting into European equities because they’ve still had this whole looming French election coming up and the worries about a Le Pen government if it came in.
     
    Now we’ve got that behind us, we can really start thinking about where is growth going.
     
    Shah says there is growth across Europe, including in Italy. She says the German election does not worry her as the main candidates are pro-Europe.
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  • French banks across the board are trading lower this morning as investors priced in a Macron victory on the back of opinion polls:
     
     
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  • Euro has changed its course, falls 0.3 percent to $1.0969:
     
     
    FXTM Chief Market Strategist Hussein Sayed comments on the Euro following the French election results.

    French say 'no' to populism and 'yes' to a united Europe following a similar trend in Austria and The Netherlands over the past six months. Macron's decisive victory on Sunday is a clear sign of a resistance to populism after Trump’s election and the Brexit vote. The Euro hit a seven-month high, to trade above 1.10 against the dollar as an initial reaction, but pulled away in a classic “buy the rumor, sell the fact” style given that traders were already positioned for a Macron win. The Euro appreciated by 2.5% since the first round of voting, suggesting that the good news was already priced in, and now it requires a fresh catalyst to determine the next move. 
     
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  • Macron economic adviser Pisani-Ferry says no one will be tough in Brexit negotiations and no one has interest in hard Brexit. That's according to Reuters citing BBC.
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  • French President-elect Emmanuel Macron will attend V-E Day celebrations in Paris today alongside current President Francois Hollande.
     
    Reporting for CNBC, Claire Fournier says the commemoration will start shortly and says it will be interesting to see Hollande with Macron once again.
     
    As you know, Francois Hollande is, if I may put it that way, Emmanuel Macron's political father. He was the one to launch his political career when he hired him as an economy advisor and then when he designated him as the economy minister, before Emmanuel Macron quit a year ago to create his movement En Marche.
     
    Claire says  Macron has kept his distance from Hollande to avoid appearing as his political heir.
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  • Macron Economic Adviser Pisani-Ferry says Macron will certainly not want to punish Britain. That's according to Reuters.
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  • Pierre-Yves Gauthier, founding partner of AlphaValue, comments on the muted response by stock markets to Macron’s election victory, saying he would have made a loss
     
    I would have lost my shirt on this one. 
     
    There was a degree of worry before the second round to the extent that the proportion of votes which could have gone to Mrs Le Pen could have been much higher  than what we saw, so I was expecting a very positive reaction on behalf of financials, because financials would have been the short of choice.
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  • PPG today issued the following statement in connection with its proposal to AkzoNobel to form a combined company:  
     
    PPG is disappointed that AkzoNobel has once again refused to enter into a negotiation regarding a combination of the two companies, ignoring the best interests of its stakeholders, including long-term shareholders who overwhelmingly support engagement. 
     
    Following no feedback since PPG provided its revised proposal April 24, PPG  made yet another attempt to discuss the proposal on May 4, which Akzo responded   to on May 5 at 15.30 CET, stipulating to meet PPG only in Rotterdam the following  day, May 6 at 15.00 CET. The meeting lasted less than 90 minutes and the AkzoNobel chairs stated at the beginning that the meeting was solely for the purpose of reviewing PPG's revised proposal. Specifically, the AkzoNobel chairs stated up front that they did not have the intent nor the authority to negotiate.  

    They also did not share any concerns regarding PPG's proposal, or analysis or comparison of their new standalone strategy versus PPG's proposal, nor would they entertain any questions or discussion about their plan or analysis.  
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  • Here are your top stories at this hour:
     
    • The Macron relief rally is short-lived as investors buy the rumour and sell the fact, sending bank shares into the red.
    • The euro also gives up gains against the dollar, despite an initial wave of relief across the EU that boosted the currency to 6 month highs.
    • A battle lies ahead as he looks to build a position for his party in Parliament, with early polls suggesting En Marche could fall short of an outright majority in the lower house. 
    • Third time unlucky. AkzoNobel rejects another offer from PPG, sending shares in the Dutch paints and coatings company lower as a hostile bid could loom. 
       
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  • Seema Shah, global investment strategist at Principal Global Investors, discusses whether markets are starting to top out on valuation concerns. 
     
    The moves that we’ve had for the beginning of the year, actually since the election, suggest there’s only so much further you can go before there has to be some kind of consolidation.
     
    Now I don’t think there’s going to be a correction, because I think there’s a fundamental strengthening in the underlying economy, and that’s not just in the U.S. or Europe, but I think it’s a global movement. 
     
    She says there could be set backs every now and then, especially if there is disappointment with the Trump administration's fiscal plans. 
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  • Morgane Delledonne: Fixed Income Strategist‎, ETF Securities analyses Macron's win and impact on markets:
     
    Macron gathered 65.9% of the votes, 3 points above the latest opinion polls. Overall, we expect market participants to see Macron's victory as a relief but to have only a limited positive impact on markets on Monday morning as his victory has been priced in after the first round. ‎The French - German government bond spread already tightened to 43bps last Friday ahead of the results, from over 85bps prior the first round, but still have to go back to its pre-election level of ~30bps.
     
    However, France and Europe only narrowly survived populism.‎ One third of the French electorate did not vote in this second round and Le Pen obtained 34.1% of the votes, which is almost twice what her father got in 2002, leaving the new President elect with large domestic challenges.
     
    The next decisive step for France will be the Parliamentary elections. The latest polls indicate Macron's party "En Marche" to be the first party at Parliament followed with the Republicans. This likely centre-right majority at Parliament is increasing the chances for Macron to pass his liberal reforms on taxes, labour and trade.
     
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  • 'Phew!': World reacts as Macron becomes next French president

    CNBCEmmanuel Macron has won the keys to the Elysee Palace in one of the closest fought and tumultuous presidential races in France's recent history.
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  • French banks continue to trade sharply lower as investors start to take profit:
     
     
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  • Euro hits day's low of $1.0955, down 0.4 percent on the day:
     
     
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