World Markets Live - May 9 - CNBC Live Events

CNBC Live Events

World Markets Live - May 9

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

    Benjamin Vedrenne-Cloquet, Partner at IBIS Capital says education technology is a "long rising tide".

    he says the global education market is worth 5 trillion euros and so far the slice taken up by "ed-tech" is very small.

    You have a long way and lots of growth for ed-tech to penetrate the market. There may be some failures on the way but there is a good long term story for investors.
    Vedrenne-Cloquet says education technology sold business-to-consumer rather than b2b is likely to generate faster profit, especially if the focus is trained on emerging markets.

     Benjamin Vedrenne-Cloquet

    Comment ()
    E.ON shares were down around 0.6 percent this morning after reporting sales fell 7 percent to 10.5 billion in the first quarter. The share price has now pared these losses and are now trading higher.
    The utility company's CFO says the U.K. market will be challenging and says he expected further political interventions in the market: the ruling Conservative party has proposed energy price caps to help consumers.
    The CFO says the company is confident that they will be able to stabilise margins in its German retail business, Reuters reports.
    Comment ()
    Confidence among EU business leaders remained stable during the first quarter according to a report by chief executive leadership organisation YPO.
    The study noted a significant decline in French confidence in the weeks leading up to the first round of the elecion, hitting its lowest level in over 2 years. The United States cemented top spot thanks in part to a boost from recent tax and regulatory reforms.
    Bhanu Choudhrie, chairman of C&C Alpha Group, discusses how events over the next few months may affect this community.
    We’ve got the German elections coming up, we also have the U.K. elections coming up. We did have a loss in confidence in France, but we know what played out there fairly recently so the next quarter results will demonstrate what is expected from the global CEOs as to the level of confidence.
    Comment ()

    Can Trump do better than Reagan? 

    Ronald Reagan by the first quarter of 1982 was sitting on a pretty savage double-dip recession.

    There was an acute quarter-on-quarter print in 82 which was minus 6 percent.  So if Donald Trump can get to the end of the year without being in a double dip recession, he's done better than a predecessor with a similar rhetoric.
     - Henry Dixon, Fund Manager, GLG   

    Dixon says people should not give up on the reflation trade and any talk of secular stagnation should be dead by the end of this year.
    Comment ()
    Commerzbank shares are getting a boost after a one-off gain in its asset run-off unit helped it beat first-quarter forecasts. 

    Germany's second largest lender saw net profit soar 28 percent, which more than offset a fall in earnings in its corporate and retail businesses. CEO Martin Zielke cautioned that the bank needed more time before growth could outpace the challenges arising from negative interest rates.

    On set with Carolin for Street Signs is Nick Nelson, Head of European Equity Strategy at UBS.

    He describes the European earnings quarter as the best set of beats for 7 years.

    Nelson says the macro in Europe is improving and top line growth is finally arriving and allowing firms some operational flexibility. 

    He says margins are still depressed and there is still headroom for profits to improve further in Europe. 

    Nelson: Finally seeing top line growth in Europe. 

    The UBS man says cynicism will remain over Europe's prospects given recent years, so investors will need at leats another set of earnings results to back the call that European shares are good value.
    Comment ()
    Italian retail sales for March have come in at 0.0 percent month-on-month on a seasonally adjusted basis.

    On a year-on-year basis, ISTAT say Italian retail sales fell -0.4 percent in April.

    The February figure has been revised to -0.2 percent. 

    Reuters writes that the figures point o ongoing weakness in Italian domestic demand.
    Comment ()
    Italian drinks firm Campari has reported first quarter sales of 376.6 million euros, a provisional rise of 5.7 percent.

    The adjusted earnings before interest and tax came in at 64.4 million euros. 

    Comment ()
    Continental has slightly raised its full-year sales guidance. 

    The German auto parts and tire maker said it expects business to stay strong in the second quarter and that full-year group sales could exceed 43-and-a-half billion euros this year.

    Wolfgang Schäfer, CFO at Continental says U.S. auto sales are likely to tail off but it is at present fairly hard to evaluate.

    On a U.S. border adjustment tax, he says the probability of it happening do seem to have lessened.

    Nevertheless, we have done scenarios of what a border adjustment tax would mean.

    For southern Europe, he says the countries there are now in possession of old cars and demand is set to pick up.

    Schafer says Germany remains strong and the U.K. was pretty strong at the start of 2017.
    Comment ()
    The crypto-currency Bitcoin has risen above $1,700 according to the price index chart published on

    That an almost doubling of price in the last 6 weeks.

    The daily move is now more than 5 percent higher. The market capitalization of Bitcoin is calculated at $27.92 billion, according to

    One day chart of Bitcoin 

    Comment ()
    U.S. futures are suggesting a positive open to U.S. markets later today.

    Earnings before the bell include Discovery Comm., Duke Energy, Liberty Media, Office Depot, SeaWorld, Valeant Pharma.

    After the bell, we have Disney, Priceline, Electronic Arts, Jazz Pharma, Microchip Tech., News Corp., Nvidia, TripAdvisor, Blue Buffalo, Yelp.

    US Data today (all times Eastern)
    0600 Small Business Optimism Index
    1000 JOLTS
    1000 Wholesale Trade

    Comment ()
    Dow Jones is reporting that French prosecutors are to open a probe into the campaign of president-elect Emmanuel Macron.

    A spokeswoman for the campaign said the French cyber police will lead the investigation.

    French President-elect Emmanuel Macron celebrates on the stage at his victory rally near the Louvre in Paris, France May 7, 2017. 

    Comment ()
    European markets have moved higher during the mid-morning trade. The buying is being supported by yesterday's upbeat session on Wall Street and a stabilization in commodity prices.

    Comment ()
    The reputation of John Lewis as an employer has been lily-white thanks to the shared ownership scheme that has benefited workers.

    So news that the partnership has made a provision of £36 million to cover potential costs relating to minimum wage abuses could be quite the setback.

    The firm, being a co-operative of sorts, is not listed.

    The firm's accounts state that the chairman's bonus for 2016/17 will be waived and that the firm will work with U.K. tax authorities.

    John Lewis says its contractual hourly rates have never been below the U.K.'s national minimum wage.

    Comment ()
    The VIX index which is the CBOE's measure of implied volatility closed yesterday at 9.77, although it has ticked up slightly since then.  A session low of 9.67 was hit in session, marking the lowest level since December 1993.

    The VIX is built using the implied volatilities of a wide range of S&P 500 index options. 

    This volatility is meant to be forward-looking and is calculated from both calls and puts.

    It is often referred to as the "investor fear gauge."

    Where is the fear? 

    Comment ()
    The U.K.'s ruling Conservative party will include a cap on energy bills in its election manifesto. The party claims that British people are being ripped off by high bills, although there is now promise of no price rises next year.

    Critics of the policy say it will decimate earnings for big suppliers. 

    Business Secretary Greg Clark told the BBC today that the industry had overcharged customers by an average of £1.4bn a year between 2012 and 2005, equivalent to between £70 and £200 extra on bills.

    Energy suppliers have not seen share prices too badly hit with the exception of Centrica, owner of British Gas.

    Comment ()
    Equity markets in Europe have risen as solid earnings and post-French election relief have pushed investors back into what some deem riskier assets.

    Bond yields are also rising across Europe as a refreshed appetite for equity investment sees money-managers move out of fixed income.

    The euro has remained largely static against the dollar. However, that is potentially a reflection of dollar strength in the face of sustained belief that the Federal reserve is firmly on course to raise interest rates in June and beyond.
    Comment ()

    Commerzbank recorded an earnings beat but what will it do in future?
    by david.reid

    Comment ()
    South Koreans are reportedly flocking to polling booths as the country votes in a new leader.

    South Korea votes to pick its next president with Trump comments a factor

    CNBCSouth Koreans went to the polls on Tuesday, in an election that may have already swayed under bombastic rhetoric from U.S. President Donald Trump.

    Comment ()
    Paresh Davdra, CEO and Co-Founder of RationalFX analyses the move in euro after Macron's victory in the French election and the outlook for the pound ahead of the BoE rate decision on Thursday:
    With Macron’s victory, investor fears of further uncertainty were abated, and analysts will now be looking to ECB policy as a key driver of the euro once again. With the Eurozone economy growing by 0.5% in the first quarter of the year, analysts will be hoping for any signs of a change from the ECB’s long standing quantitative easing policy.

    Analysts will be watching the pound closely ahead of Thursday’s BoE’s interest rate decision and quarterly inflation report. The currency remains buoyant on the back of local elections and resisted the euro’s brief post-election rally. With the upcoming UK election preventing governor Mark Carney and the committee from sharing their usual insights in the lead up to this meeting, investors are unlikely to see any significant shift in policy at this time. 
    The pound and the strength of the UK economy in general have exceeded expectations by proving resilient, despite warnings from the BoE in the lead up to the referendum. Despite the policy meeting, investors will likely have to focus on the UK election as the main driver of sterling in the next month.
    Comment ()
    The belief that consuming too much cheese is harmful to your health is wrong, according to experts, after finding no link between eating dairy products and the elevated risk of a heart attack or stroke.

    The findings challenge the view among many health-conscious eaters that foodstuffs such as full-fat cheese, milk and yogurts could be harmful because of their high saturated fat content.
    There's been a lot of publicity over the last five to 10 years about how saturated fats increase the risk of cardiovascular disease and a belief has grown up that they must increase the risk, but they don't, Ian Givens, professor of food chain nutrition at Reading University, told The Guardian newspaper on Tuesday.

    Eating cheese does not increase risk of heart attack or strokes, say researchers

    CNBCThe belief that consuming too much cheese is harmful to your health is wrong, according to experts.
    Comment ()
    European stocks are trading fairly higher in afternoon trade supported by an upbeat session on Wall Street and a stabilization in commodity prices. 
    Basic resources surged higher to lead the gains as copper futures appeared on track to buck a losing streak on Tuesday, the metal edged up 0.2 percent to $5,508 a ton. Mining giants Antofagasta, BHP Billiton and Glencore were all trading over 2 percent above the flatline.
    Comment ()
    Chris Saint, Senior Analyst, HL Currency Service analyses the move in the pound:
    The pound has been ticking higher against the euro today to bring the €1.19 level back into sight, whilst managing to stay above $1.29 versus the US dollar throughout the morning. Domestic influences to push the pound significantly in either direction have been thin on the ground. Overnight the British Retail Consortium reported a far stronger than expected rise in retail sales in April, although this year’s later timing of the Easter bank holidays suggests the 5.6% increase in like-for-like sales is overstating the true health of the UK consumer.
    The Australian dollar's downward trend continued overnight, hitting fresh seven-month lows against the pound after the country's latest retail sales figures missed expectations. Australian retail sales slipped by 0.1% in March, contrary to predictions for a 0.3% increase. The data reinforces speculation the Reserve Bank of Australia will keep interest rates at the current record low of 1.5% throughout the course of this year.
    Comment ()
    U.S. stock index futures point to a flat to slightly higher open, with investors gearing up for a slew of earnings results, on top of being on the lookout for new data and comments from leading Fed members.
    Major U.S. companies are set to release their latest earnings on Tuesday, with Disney, Allergan, Office Depot, SeaWorld, and News Corp. expected to keep investors on their toes.

    Discovery Communications, Icahn Enterprises, Liberty Media, Tegna, Dean Foods, Valeant Pharmaceuticals, Electronic Arts, Blue Buffalo, Hostess Brands, TrueCar and Yelp will also be reporting.

    Elsewhere on the data front, the NFIB (National Federation of Independent Business) survey showed small-business confidence slipped in April. Wholesale trade and JOLTs (job openings and labor turnover survey) are also due later on Tuesday.
    Comment ()
    Check out which companies are making headlines before the bell:
    Valeant Pharmaceuticals — The Canadian drugmaker reported a profit for its latest quarter, compared to a year-ago loss, helped by a one-time tax benefit. It also raised its full-year earnings forecast.
    Wayfair — The online home furnishings retailer lost 48 cents per share for its latest quarter, a loss that was 10 cents a share smaller than estimates. 
    Party City — The party supplies retailer beat estimates by one cent a share, with adjusted quarterly profit of five cents per share. Revenue was essentially in line with expectations.
    Marriott — The hotel operator beat estimates by 10 cents a share, with adjusted quarterly profit of $1.01 per share. Revenue also topped estimates. Marriott saw both higher room rates and increased occupancy compared to a year earlier.
 — JD posted its first profit since going public in 2014, although the China-based e-commerce company did warn that expenses related to its planned expansion would affect income growth.
    Wells Fargo — Wells Fargo may sell its insurance unit, according to a Bloomberg report. The bank could get up to $2 billion for the unit, according to people familiar with the matter.
    Apple — Apple is on watch once again, after reaching a record high Monday and topping the $800 billion mark in market capitalization. That followed news that billionaire investor Warren Buffett had tripled his stake in Apple, according to a Securities and Exchange Commission filing.
    Click here for a full list of companies.
    Comment ()

    Robert Bergqvist, Chief Economist at SEB, comments on general market outlook for developed and emerging markets:
    Recent developments have provided support for our rather optimistic economic picture, especially concerning the EM sphere and Western Europe. In our own neighbourhood, we have witnessed signs of strength in both the Nordic (especially Swedish) and Baltic economies. In the United Kingdom, a weak pound has helped buoy the economy to a greater extent than we had expected. But even if the Tory (Conservative) government and Prime Minister Theresa May can strengthen their position after the June parliamentary election, we still foresee a rather tough ‘Brexit’ process.
    Looking at the world economy as a whole, we now believe that GDP growth will accelerate from 3.2 per cent in 2016 to 3.7 per cent this year and 3.8 per cent in 2018. Several underlying factors explain strong world economic growth. For example, industrial capacity utilisation has finally moved up to levels that will trigger new investments on a broader scale. Emerging market (EM) economies have also undergone adjustment processes that have improved their balance situation, while rising commodity prices have brought relief to previously hard-pressed producer countries. The mood in the Chinese economy has shifted solidly in a positive direction, but we believe this will lead authorities to eventually shift their economic policies in a tightening direction, in part to slow the build-up of imbalances.
    Comment ()
    US retail sales for first week May down 1.6 percent vs April. That's according to Reuters.
    Comment ()
    Oil rose on Tuesday but faced headwinds from concern over slowing demand and the rise in U.S. crude output that has shaken investors' faith in the ability of OPEC to rebalance the market.
    Weekly U.S. data on crude production and inventories, plus monthly reports on supply and demand from the Organization of the Petroleum Exporting Countries and the U.S. Energy Information Administration this week, should provide a detailed picture of how quickly global crude inventories are falling.
    We really need to see some of the data starting to support the idea that global inventory levels are coming down, Saxo Bank senior manager Ole Hansen said told Reuters.
    Comment ()
    Reports of the demise of the Trans-Pacific Partnership (TPP) trade agreement may be premature, as the deal's members consider proceeding without the U.S.

    That's the wind in the air at the Institute of International Finance conference in Japan, despite U.S. President Donald Trump pulling the U.S. out of the TPP, a broad 12-nation trade deal, which he claimed was a "disaster" that would hurt U.S. manufacturing.

    Although Japan's Prime Minister Shinzo Abe had initially said that the TPP would be "meaningless" without the U.S., more recently, Japanese officials have begun to second Australia's calls to proceed without the U.S.

    Trump calls it a 'disaster,' but top experts are saying TPP might still happen without him

    CNBCReports of the demise of the TPP trade agreement may be premature, as the deal’s members consider proceeding without the U.S.
    Comment ()
    Wall street stocks are now open for trading with the U.S. stocks opening in positive territory as volatility hits multi-year lows:
    Comment ()

    Nasdaq and S&P hit new record highs; market volatility hits lowest since December 2006

    CNBCU.S. stocks kicked off Tuesday's session higher, with the S&P 500 and Nasdaq composite hovering around record levels.
    Comment ()
    Nasdaq and S&P hit record highs as Wall Street stocks get a boost from low volatility. Here's a look at their performance over the past three months:
    Comment ()
    Bank lenders are getting worried about the economy, but investors seem carefree about Wall Street. That seems off to the strategists at Bank of America Merrill Lynch.

    The CBOE volatility index closed Monday at the lowest level since December 1993, but BofAML found that Wall Street's fear gauge should be much higher because of its past correlation to an obscure measure of economic growth.

    Demand for commercial and industrial loans, a leading indicator of growth, dipped into negative territory in the first quarter, Merrill Lynch said, citing the latest Federal Reserve Senior Loan Officer survey. Merrill found that periods of low loan demand have in the past been mostly associated with rising volatility, but that's not happening now.

    The firm illustrates this relationship in the chart below:
    Comment ()
    Meanwhile, the euro has hit session low vs the dollar, a reverse from the 6-month high after Emmanuel Macron won the French presidential elections:
    Comment ()
    Gold fell on Tuesday to its lowest since mid-March as the election of centrist Emmanuel Macron as French president reduced demand for bullion as a safe haven while stocks and the dollar rose and U.S. bond yields hit a one-month high.

    Revived appetite for riskier assets has pushed global stocks to record highs, while the market's so-called fear gauge, the VIX volatility index, fell to its lowest since 1993.

    Rising stocks and higher bond yields raise the opportunity cost of holding non-yielding bullion, while a stronger dollar makes gold more expensive for holders of other currencies.
    With one of the largest political risk events now cleared, some consolidation is warranted, albeit political uncertainty lingers in Italy and is likely to remain for some time, UBS analyst Joni Teves said.
    Comment ()
    European markets moved closer to 21-month highs during afternoon trade on Tuesday, supported by an upbeat session on Wall Street and a stabilization in commodity prices.
    Comment ()

    Europe stocks look to dethrone US counterparts as earnings beats hit 7-year high

    CNBCA rotation out of US stocks and into Europe is predicted as the current earnings season progresses.
    Comment ()
    Thirty minutes to European close and stocks are trading higher, edging towards a 21-month high:
    Comment ()

    European markets edge towards 21-month highs; Commerzbank up 3.1%

    CNBCEuropean markets moved higher during early afternoon deals Tuesday, supported by an upbeat session on Wall Street.
    Comment ()
    European stocks are now closed for trading with the Stoxx Europe 600 closing 0.5 percent higher:
    Comment ()
    Major European stocks closed in positive territory after a day of gains edging towards a 21-month high:
    Comment ()
    And that's all from us here at World Markets Live. Join us from 0600 London time tomorrow for more news, views and analysis. Till then, have a great evening and see you soon.
    Comment ()
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