World Markets Live - May 8 - CNBC Live Events

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.

    Russian President Putin congratulates France's Macron on election victory, Interfax cites Kremlin. Putin tells Macron Russia is ready for constructive work on bilateral and global issues. That's according to Reuters citing RIA.
    Putin tells Macron important to overcome mutual mistrust and unite efforts to ensure international security.
    Comment ()
    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. This following a period of growing economic disenchantment, which plagued the latter stages of President Francois Hollande's tenure. 
    Sir Christopher Pissarides, Professor, London School of Economics joins us live:
    There is always uncertainty on the outcome of the reform programme but if anyone stands a chance to do it, it is Macron. He had a major in economics, he knows the economy very well. He has worked in the financial services sectors before. He stands in the center of politics which makes it easier to reform.
    Comment ()
    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. 
    Comment ()

    Macron is France's next president — here’s what happens next

    CNBCEmmanuel Macron has fought off populist opponent Marine Le Pen and won the race to become France's next president. Where does France go from here?
    Comment ()
    Reacting to Emmanuel Macron’s French Presidential win, Darren Ruane, Head of Fixed Interest at Investec Wealth & Investment, said:
    As predicted by polls and priced in by investment markets, Emmanuel Macron won the French election with a forecast greater share of the final vote than was expected. Macron is estimated to have won 66% of the final vote while rival Marine Le Pen achieved 34%. 
    The next focus will be on the Assembly elections, which take place on 11th and 18th June, where the challenge will be in converting the decisive election win into Assembly seats given the youth of M Macron’s En Marche! political party. 
    Given that Macron’s election win was fully expected by markets, early price movements show a small degree of profit-taking. European equities are lower by 0.3%, the Euro has weakened against the Dollar and French government bond yields are underperforming their German counterparts.
    Comment ()
    Following the success of the pro-European candidate Emmanuel Macron, French presidential election on Sunday 7 May, economists at Mirabaud Asset Management, Perre Pinel, Gero Jung, Valentin Bissat, and Arthur Jurus give their thoughts on the potential impact of Macron’s economic plans on the investment industry: 
    • There is a risk that the new President will not obtain a majority in June's parliamentary election, forcing him to form a coalition government.
    • Macron’s economic programme aims to support companies by extending the reduction in their social-security contributions through the CICE (competitiveness and jobs tax credit), and by cutting the corporate income tax rate from 33% to 25%. Consumer real incomes would be supported by taking 80% of house-holds out of the "taxe d'habitation" (residence tax) net, scrapping unemployment benefit and health insurance contributions, having each member of a couple pay income tax individually, and increasing the "prime d'activité" (activity bonus).
    • Structural reform: a €50 billion investment plan would promote a new model of growth, with the focus on training and education (€15 billion), environmental transition (€15 billion), transport (€5 billion), agriculture (€5 billion), hospitals (€5 billion) and modernisation of the state through the adoption of digital technology (€5 billion).
    Comment ()
     Investor sentiment in the euro zone hit its highest level in almost a decade in May, improving more than expected thanks to a strong assessment of the current economic situation and expectations that political uncertainty will diminish.

    The Frankfurt-based Sentix research group's euro zone index rose to 27.4 points, its highest level since July 2007, from 23.9 points in April. The May reading surpassed the mid-range forecast of 25.0 in a Reuters poll of analysts.
    Investors are obviously expecting a decrease in political uncertainties in the euro zone, Sentix said in a statement, adding that investors were taking a more upbeat view ahead of Sunday's second round of the French presidential election.
    Comment ()
    U.S. stock index futures point to a flat to slightly lower open, with investors set to digest more earnings and moves in oil, on top of the news that a pro-European Union candidate had won the French election.
    Comment ()
    Moody's says Macron's policy platform credit positive for France; implementation risks remain. That's according to Reuters.
    The outcome of France's legislative elections in June will be crucial in determining whether the new President is able to achieve his policy plans, Moody's says. 
    Comment ()
    High demand from abroad drove boosted German industrial orders in March, data showed on Monday, a second-in-a-row rise analysts saw as a sign the sector is overcoming past volatility and will contribute to growth in coming months.

    Contracts for "Made in Germany" goods were up by 1 percent on the month, the Economy Ministry said, the first time since November 2015 that new orders increased for two months in a row.
    Combined with buoyant confidence indicators today's new orders data suggest that industrial production could finally gather some momentum, ING Diba economist Carsten Brzeski said in a note to clients.
    Comment ()
    Bank of America Merrill Lynch says upgrades French GDP forecasts by 20 basis points for 2017 and 10 basis points for 2018 at 1.3 percent and 1.4 percent.
    Comment ()
    Societe Generale shares hit session low, now down 3 percent:
    Comment ()
    The European banking index slipped 1 percent after initially trading higher at the open this morning. The index is trading 0.5 percent lower currently:
    Comment ()

    Macron, in victory speech, says task ahead is immense and will require commitment of all of France

    CNBCEmmanuel Macron said he would turn a new page in French history in his first speech since becoming president-elect of France.
    Comment ()
    Paresh Davdra, CEO and Co-Founder of RationalFX analyses the impact of election results on markets:
    Emmanuel Macron has won the French Election, securing a victory over rival Marine Le Pen with 65.5% of the vote. The euro initially reached a 6-month high against the dollar as Mr Macron became the first president from outside the two traditional main parties in the modern republic's history before falling back as investors begin to look towards the future.
    The markets recognise that Macron faces immense domestic challenges including ending years of high unemployment and sluggish growth, which will impact on the long term prospects for the euro if he is unable to tackle these challenges effectively. Investors will be watching closely to see how the Macron presidency unfolds, and if his administration will help to restore the euro to strength.
    Comment ()
    Facebook has launched a British newspaper advertising campaign to warn users of the dangers of fake news, in the latest drive by the social media giant to tackle malicious information ahead of a national election. That's according to Reuters.

    Facebook has come under intense pressure to tackle the spread of false stories, which came to prominence during the U.S. presidential election last year when many inaccurate posts were widely shared on it and other social media services.

    Ahead of the June 8 parliamentary election in Britain, it urged its users in the country to be sceptical of headlines that look unbelievable and to check other sources before sharing news that may not be credible. It said it would also delete bogus profiles and stop promoting posts that show signs of being implausible.

    We have developed new ways to identify and remove fake accounts that might be spreading false news so that we get to the root of the problem, said Simon Milner, Facebook's director of policy for the UK.
    Comment ()
    European banks including major French banks are trading sharply lower this morning. Jaisal Pastakia, Investment Manager at Heartwood Investment Management analyses why
    • Over the last two weeks French banks had benefitted from an improvement in sentiment towards European equities, as well as positive earnings releases. Both  Societe Generale and BNP Paribas came out with Q1 earnings releases which exceeded earnings expectations 
    • European bank equities are down this morning, but it is important to remember that they rallied strongly following the first round of the Presidential election. In fact, towards the end of last week, Societe Generale’s share price was trading at its highest level since Q1 2011. Meanwhile, towards the end of last week, BNP Paribas’ share price was trading at its highest level since 2008.
    • Beyond the equity markets, we are seeing positive sentiment being reflected in the CDS markets. CDS spreads for the two largest French banks have continued to fall reflecting declining risk premium: 
    • BNP’s CDS spread has continued to fall this morning and is at the lowest level since Q2 2015. 
    • Societe Generale’s CDS spread has continued to fall this morning and is at the lowest level since 2008.
    Comment ()
    German Foreign Ministry spokesman says no time should be lost in supporting France to implement economic reforms and strengthen role in Europe. That's according to Reuters.
    Comment ()
    Ratings on France unaffected by the Presidential election outcome, according to S&P. The ratings agency has also said that the outcome of French presidential elections should have no immediate impact on the ratings on France.
    Our baseline expectation is that next government of France is likely to continue or even accelerate the current moderate pace of reform, according to S&P.
    Comment ()
    UK PM Theresa May says wants to bring net immigration down to sustainable level of tens of thousands. That's according to Reuters.
    Comment ()
    Europe's real estate sector index at 8-month high, now up 1.4 percent:
    Comment ()
    Outgoing French President Hollande confirms that handing over of power to Macron will take place on May 14.
    Comment ()
    Berkshire Hathaway CEO Warren Buffett on CNBC says I should have had better insights into Google. He says Google has aspects of a natural monopoly, 
    Comment ()
    Deutsche Bank's U.S.-listed shares down 2.6 percent at $18.84 in premarket trade. The bank's shares are down more than 1 percent in European trade:
    Comment ()
    No time should be lost in supporting France as it seeks to implement economic reforms and strengthen its role in Europe, a spokesman for the German Foreign Ministry said on Monday.

    A spokeswoman for Finance Minister Wolfgang Schaeuble told the regular government news conference that said Schaeuble would discuss measures to strengthen the eurozone with the new French government once it was formed after Sunday's election of independent candidate Emmanuel Macron.

    When asked about the German goverment's position on the introduction of joint eurobonds, government spokesman Steffen Seibert said Berlin remained opposed to such move.
    Comment ()
    On French elections, Buffett says wasn't waiting for the election results. 
    French election is not a factor for us.
    Comment ()
    The victory of Emmanuel Macron over Eurosceptic Marine Le Pen in the presidential election, with around 66% of the vote, removes the risk of a near-term severe political shock to France and wider Europe, according to Fitch ratings. The result supports our assumption that France will remain a member of the EU and eurozone, in line with our expectations when we affirmed France's 'AA'/Stable sovereign rating in March.
    The presidential election also highlights the sense of disillusion among many French voters, with 48% of the first-round electorate supporting anti-EU candidates, and a relatively low turnout compared to previous final-round elections (estimated at 74.6%, while 11.5% of ballots were blank or void). A challenge for the incoming administration will be to address the concerns that have led to rising support for populist and Eurosceptic parties, such as high unemployment (around 10% in France versus 4% for 'AA' peers), while enacting potentially unpopular economic and fiscal reforms and maintaining a commitment to EU integration.
    Comment ()
    Coach to acquire Kate Spade & Co for $18.50 a share in cash. 
    Comment ()
    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.
    Speaking at a post-election celebration at the Louvre museum -- Macron told supporters that the rest of the world would be watching to see how France reacted following his election. 
    Crowds of supporters gathered outside The Louvre in Paris to celebrate to live music and hear Macron's victory speech.
    Comment ()
    Warren Buffet has told CNBC on-air that running an airline isn't as "suicidal" as it used to be. However, he says the key metric to watch for is  70 percent capacity.

    The Berkshire Hathaway chairman and founder also criticizes his own investment in U.S. airlines.

    Moving on to Wells Fargo, a bank that Buffet is invested in through his firm, Buffett said the big mistake was when the bank did not make changes as soon as it was apparent that there was a problem.

    Wells Fargo came under fire when it was alleged that at least 2 million bank accounts or credit cards were opened or applied for without customers' knowledge or permission between May 2011 and July 2015.

    Buffett says the bank's reputation has been hurt but the earnings have not. 

    On whether he would sell shares in the bank, he remains coy.

    Earlier, the legendary investor claimed he was "too dumb" to appreciate the growth story of Amazon. 

    Comment ()

    The biggest "business" we own, we have $95 billion dollars invested in it. But it is selling at 100 times earnings and earnings can't go up.  That does not make me happy.

    Warren Buffet is outlining why he is dissatisfied having so much of Berkshire Hathaway money sitting in Treasuries.

    And although he is constantly "itchy" to spend on businesses, Berkshire has not made an acquisition in about 18 months.

    He, however, remains confident that stocks will rise over a 10- 20 period year period.

     he reasserts how the U.S. corporate landscape has changed with the country's top 5 companies largely now able to operate without the need to take any additional money on board.

    Apple, Microsoft. Amazon, Facebook, and Alphabet are the top 5 firms in the United States.

    "I could run those businesses, they do it a lot better of course, with absolutely no equity capital."

    Buffet adds that those who create businesses that can grow quickly with almost no capital will make a lot of money.

    He cites Jeff Bezos as someone who managed that trick. 
    Comment ()
    There is something about this world that will cause interest rates to remain low, stocks will look cheap and there will be businesses that I should have bought.

    Buffet tells Becky that he didn't think that rates would stay so low for so long but he is preparing for the trend to continue.

    The sage of Omaha also reasserts his dislike of holding too much investment in fixed income.

    Bonds are a terrible choice against stocks. I've been telling people that for a long time. It's just simple mathematics.

    However, he isn't claiming he is always right. 

    Comment ()
    Billionaire investor Warren Buffett told CNBC on Monday it's "amazing" how Apple has resonated with consumers, and that's why Berkshire Hathaway bought the stock.
    I can very easily determine the competitive position of Apple now and who's trying to chase them and how easy it is to chase them, Buffett said on "Squawk Box" from Omaha, Nebraska, following Saturday's Berkshire's annual meeting.

    Billionaire investor Warren Buffett says it's very easy to see where Apple is with consumers at any time

    CNBCThe Berkshire Hathaway CEO tells CNBC it's "amazing" how Apple has resonated with consumers.
    by Spriha Srivastava edited by david.reid 5/8/2017 12:21:00 PM
    Comment ()
    Warren Buffet has told CNBC that his income tax was less than $4million for the year.

    On tax reform for corporates, he argues that a wait and see policy will be best but he doesn't see much evidence of U.S. firms being disadvantaged in relation to foreign opposition. 

    His sidekick Charlie Munger says a one-time tax relief deal to help global firms reshore foreign cash is workable and was a success under the Bush regime.

    The interview is continuing.

    Comment ()
     U.S. indices look set to sit around the flatline when they open in about 45 minutes time.

    As for the individual stocks making the news you can check out the early movers in this new article here.

    Comment ()
    Who would have guessed that we would print all this money and we wouldn't see any inflation?
     - Charlie Munger, vice chairman of Berkshire Hathaway. 

    Munger is outlining why trying to predict how the economy will work out is almost impossible.

    Warren Buffet is then asked his opinion on Trump and the economy. Buffet said the presidency is probably overemphasized in its relevancy to stock market performance.

    I have never made a stock decision based on who is president or who is likely to be president.

    - Warren Buffet Chairman, President & CEO of Berkshire Hathaway
    Comment ()
    5G technology specialists Straight Path says it has received a takeover offer from a telecommunications company that is worth around $3.1 billion.

    Straight Path owns the spectrum used in 5G communication.

    The offer betters an existing bid from AT&T.

    Under the terms of the new offer, Straight shareholders will receive a $184 per share in an all-stock bid. AT&T had agreed to pay $95.63 per share, also all in stock.

    The assets of Straight Path are outlined in their 2016 annual report:

    "Currently, the U.S. is divided into 175 licensable Economic Areas (“EAs”) for 39 GHz spectrum. We hold 828 EA licenses in the 39 GHz band that cover all 175 EAs. 

    Based on a comparison of the geographic areas covered by our licenses with the U.S. Census Bureau’s 2010 Census, we cover all of the U.S. population. We hold 39 GHz licenses in all U.S. markets, which is more than 90% of active EA licenses. 

    As a result, we believe that we are well positioned to provide a single source of fixed and mobile wireless spectrum solutions across a variety of geographic areas and bandwidth requirements."

    Comment ()
    Charlie Munger and Bill Gates are with Warren Buffet on set.

    They are focusing on fixing the U.S. healthcare system and Munger, despite being a Republican, has called for a universal health care system. 

    He says Medicaid for all, with a focus on squeezing out the fraud in the system, would be an ideal answer.

    Buffet says "it was huge" what the Republicans did on the healthcare bill for rich people and he himself has saved more than $650,000 thanks to that change of law.

    He says it is a sign that the Republicans are going to slash taxes for the rich in the United States.

    Munger and Buffett says they both believe in "single-payer healthcare". 

    That system refers to health insurance, as opposed to healthcare delivery, operating as a public service and offered to citizens and legal residents towards providing nearly universal or universal healthcare.

    Munger argues that the U.S. is wasting too much cash on those who can't be saved. He is 93.

    Comment ()
    Sinclair Broadcast Group announced Monday that it will acquire Tribune Media in a deal valued at $3.9 billion.

    Sinclair will acquire 100 percent of Tribune shares for $43.50 each, also assuming approximately $2.7 billion in net debt, the companies have agreed.

    The transaction is expected to close by the end of 2017 and under the terms of the agreement,  Tribune stockholders will receive $35 in cash and 0.23 shares of Sinclair Class A common stock for each share of Tribune Class A common stock and Class B common stock that they own.

    "This is a transformational acquisition for Sinclair that will open up a myriad of opportunities for the company," Sinclair CEO Chris Ripley said in a statement. 

    "The Tribune stations are highly complementary to Sinclair's existing footprint and will create a leading nationwide media platform that includes our country's largest markets."

    The German listing of Tribune shares are reacting.

    Comment ()
    Referencing that Straight Path story below it seems David Faber has the inside scoop.

    Comment ()
    Oil prices have suddenly perked up just ahead of the open of U.S. trade.

    This relates to a story that Reuters have published claiming OPEC and non-OPEC countries will commit to extending their supply cap for at least nine months. 

    It should be noted this is Reuters citing their own sources.

    Comment ()

    And U.S. markets have opened a little brighter than futures had predicted quite recently.

    Comment ()
    The Dow Jones Industrial Average have best and worst performers that currently look like this.

    Comment ()
    Apple has hit a new intraday all-time high of 149.75. According to CNBC number crunchers, the stock is having the most positive impact on the NASDAQ 100.

    Comment ()
    The S&P 500 and the Nasdaq composite have achieved new all-time highs on Monday despite a narrow trading range.

    Comment ()
    Here are the best and worst performers on teh S&P 500 after 15 minutes of trade. Tap an arrow for the worst.


    1 of 2

    Comment ()
    Kuwait's oil minister said that oil producers taking part in a global pact to cut output are studying several options to extend the deal beyond June.

    "There is almost consensus about the importance of extending the agreement for at least six months, and Kuwait supports all efforts by other countries in this direction," Marzouq said.

    Oil was lower in session prior to the comments but are now flat to positive.

    Oil analyst John kemp is highlighting how hedge funds cut their net long position in the three main futures and options contracts linked to Brent and WTI by 97 million barrels in the week to May 2.

    The yellow line denotes the net long or short position.

     Kemp reports that bullish long positions were trimmed by 31 million barrels while bearish short positions increased by 65 million barrels. He sources his data to the numbers published by regulators and exchanges.

    Comment ()
    The snap UK general election called by British PM Theresa May is now exactly one month away.

    It looks like a guaranteed win for the ruling Conservative Party. Their leader and current prime minister, Theresa May, called the snap election in a bid to shore up support as she embarks on negotiations over leaving the European Union.

    Recent polls and council elections suggest May's gamble could pay off handsomely. 

    May has opened up a 22-point lead over the opposition Labour Party, an ICM opinion poll for the Guardian newspaper showed today.

    More on that story is available in the below link.

    According to Kensho data, over the past 7 UK general elections since 1987, the FTSE has traded positive 71% of the time with a median return of 0.78% one month prior to these elections. 

    UK blue chip stocks have outperformed broader European equities over this span, with the Euro STOXX 50 up only 29% of the time with an average return of -2.15% one month prior to these elections.

    Set for an election boost? 

    Comment ()
    Copper has hit a 4-month low on the London market.

    Chinese April copper data reveals that imports from the resource hungry country fell 30 percent in April month -on-month.

    One ABM Amro analyst told Reuters that high LME stocks of copper are also suppressing the price.

    Wider Chinese data have led some to place that country's performance as the new, or returning, market "fear focus" with the French election now out of the way.

    Trade data for April showed that Chinese exports rose by 8 percent year on year but that was well below forecast.

    The growth of Chinese imports for April was 11.9 percent, which sounds great but also disappointed markets.
    Comment ()
    Donald Trump is smearing former deputy attorney general Sally Yates ahead of her testimony before a Senate subcommittee on his presidential campaign’s ties to Russia.

    Yates is to give evidence about alleged Russian meddling in the 2016 presidential election and possible collusion between the Trump campaign and the Kremlin.

    News website Axiom earlier predicted that the Trump administration would call into question Yates' reliability.

    Sally Yates, the deputy attorney general under President Obama, is expected to tell a Senate panel how she warned top White House officials that General Flynn misled the Vice-President and others about his conversations with the Russian ambassador.
    Comment ()
    There are roughly 30 minutes until European markets close.

    European markets lacked any firm direction on Monday afternoon as investors reacted to pro-European Union candidate Emmanuel Macron securing a comfortable victory to become the next president of France.

    Basic resources slipped after weak iron ore import data from China. 

    The resource-hungry nation reduced its record-setting buying spree to its slowest pace in six months in April. Mining giants BHP Billiton, Rio Tinto and Anglo American all dipped. 

    Comment ()
    Obama warned Trump not to hire General Flynn.

    So says a number of officials to NBC.

    The warning, which has not been previously reported, came less than 48 hours after the November election when the two sat down for a 90-minute conversation in the Oval Office.

    Comment ()
    U.S. markets are lower in session.

    In U.S. economic news, St. Louis Federal Reserve President James Bullard and Cleveland Fed President Loretta Mester spoke before the open.

    Mester, a known hawk in the Fed's policymaking committee, said in a speech: "We have met the maximum employment part of our mandate and inflation is nearing our 2 percent goal."

    The Fed held off on raising rates at its meeting last week but set the table for a June move. Market expectations for a rate hike next month were 83.1 percent on Monday, according to the CME Group's FedWatch tool.

    Bullard, however, struck a more dovish note in his Monday remarks. He said that continued strong demand for safe assets along with sluggish growth in the U.S. workforce will hold down
    U.S. interest rates for the foreseeable future.

    Comment ()
    And that is the close for European markets.

    Any thoughts of a post Macron victory rally were soon dispelled as the investment community asserted that the victory was long since "baked in".

    Focus appears to be turning back to China and questions over just how healthy that country's demand story is.

    That is where we will leave the blog. Thank you for your time today and see you again tomorrow.

    Comment ()
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