World Markets Live - November 18 - CNBC Live Events
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CNBC Live Events

World Markets Live - November 18

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

  • Good Morning. Welcome to World Markets Live. It's Friday and only a few hours to the weekend. But markets are a bit confused whether to carry on with the Trump rally or be cautious after Fed chair Janet Yellen said a rate hike could be 'relatively soon'. Europe, meanwhile, is waiting for Draghi's speech in Frankfurt to get any hints on the extension of the QE programme. Stocks are expected to open higher. 

    Here are your morning calls for Europe from IG indices:

    FTSE 100               6797 (+4.5)
    CAC                        4538 (+15.3)
    DAX                       10716 (+33.7)
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  • Here are your headlines at this hour:

    • Janet Yellen signals it's full steam ahead for a December rate hike, sending the dollar to a 13 and a half year high. The Fed Chair also downplays rumours Donald Trump's administration could push her out of her job early. 
    • The euro slips to its lowest level against the dollar in nearly a year as Mario Draghi prepares to speak in Frankfurt, amid questions whether  the ECB will extend QE after Trump's victory. 
    • Security tops the agenda in Donald Trump's first meeting with a foreign leader, as Shinzo Abe tells reporters he wants to establish a relationship of trust with the President-elect.  
    • 'Your faith will be rewarded' says Elon Musk after Tesla gets the green light for its SolarCity acquisition, with 85 percent of shareholders approving the 2 billion dollar deal. 
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  • Volkswagen to cut 23,000 jobs in Germany as part of strategy overhaul, Reuters reports according to a source. The company says it will create 9,000 jobs through investments in electric cars. 

    The German auto maker is to cut 30,000 jobs world-wide at VW brand by 2021. That's according to Reuters
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  • Shares in Volkswagen are down more than 12 percent since the start of the year. One to watch as markets open:

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  • A rate hike will come 'relatively soon', according to Janet Yellen, suggesting the December meeting is still live despite uncertainty around Donald Trump's victory. In the Fed Chair's first remarks since the election, she defended her own position, along with the central bank's independence. Steve Liesman has the details.

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  • ECB President Mario Draghi is due to speak later this morning at the Eurofinance week conference in Frankfurt. We will bring you his speech live shortly after 09:00 CET 

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  • The President-elect has now made three official appointments to his cabinet, naming retired army general Michael Flynn as national security adviser. Flynn served as the head of the Defense Intelligence Agency, and served in both Afghanistan and Iraq. Former colleagues of Flynn say his policy views suggest he will take a more hardline approach to fighting Islamist militants. 

    Flynn joins White House Chief of Staff Reince Priebus and Chief Strategist Steve Bannon, whose appointments were announced earlier in the week. 

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  • When it comes to Brexit there is "no à la carte menu. There is only the whole menu or none." That is what Wolfgang Schaeuble has told the Financial Times newspaper. 

    The German Finance Minister argued that the UK cannot expect a special deal on migration, if it wants to remain part of the EU common market.  


    Probably Mr Schaeuble  was setting the scene with that interview with the Financial Times. He will most likely talk about the implications which could the Brexit mean for Frankfurt.

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  • CNBC's Annette spoke to Tarek Al-Wazir, Minister of Economics, Energy, Transport and Regional Development State of Hessen:

    There's a lot of interest in Frankfurt as a financial center, we are a major financial center. Of course we're not as big as London, and London will stay as one of the globally most important financial centers. But it's likely that it's not inside the European Union anymore. Everyone who is making business with the remaining EU 27 and is doing this business out of London of course is now having questions about the future and is thinking about possible alternatives. Frankfurt is good in this discussion because we're in the middle of Europe, in the middle of the biggest economy of the European Union, we have a good infrastructure. We have received a number of people in the last few weeks who are looking around Europe and are looking to Frankfurt. 


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  • Here are your top headlines as this hour:

    • 30 thousand job cuts worldwide. That's the rumour swirling around VW as Reuters reports the carmaker could make significant cuts in Germany in particular by 2021. 
    • Lafargeholcim cuts its mid-term profit outlook but comforts investors by pledging to cement buybacks of up to 1 billion Swiss francs over the next 2 years. We speak to CEO Eric Olsen, first on CNBC at 08:15 CET. 
    • Janet Yellen signals it's full steam ahead for a December rate hike, sending the dollar to a 13 and a half year high. The Fed Chair also downplays rumours Donald Trump's administration could push her out of her job early. 
    • The euro slips to its lowest level against the dollar in nearly a year as Mario Draghi prepares to speak in Frankfurt, amid questions whether  the ECB will extend QE after Trump's victory. 
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  • The euro has slipped to a one-year low against the dollar as Mario Draghi prepares to speak in Frankfurt:

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  • Erik Jones, Professor of European Studies at Johns Hopkins School of Advanced International Studies is on the set. He says we will see more announcements such as Volkswagen as efforts are made to restructure the economy:

    I think we are going to see a lot of effort to restructure the economy because the growth prospects in the medium term are not great. The European economy has been picking up a lot of steam but the opportunities for stimulus in the ECB are limited. 
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  • CNBC's Nancy Hungerford has been covering the VW story ever since the emissions scandal and joins us live to explain the Reuters report on job cuts.
    by Spriha Srivastava
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  • President-elect Donald Trump has made three appointments to his new cabinet, while speculation continues over who will be named for top posts including Secretary of State, Commerce and Treasury Secretary. Mitt Romney, former Republican Presidential candidate, Bob Corker, Tennessee Senator, and Nikki Haley, Governor of South Carolina are recent additions to the top contenders for the cabinet. 

    Mary-Jo Jacobi, Former Assistant Secretary of Commerce, Government of the United States joins us live to discuss what these new appointments could mean for the economy:

    I think there hasn't been a lot of news coming out of the transition so people are watching whoever is going into the Trump Tower and whoever comes back out and if they are smiling or sad. It doesn't mean any of them are under consideration. I don't think Henry Kissinger is ready to come back into the American government at this point.


    It is an arduous process because the President-elect not only has to see who he can work with but he has to look at who can get through senate confirmation.
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  • Here's the full story on VW job cuts:


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  • Volkswagen is reportedly preparing to cut 30,000 jobs worldwide at the VW brand. According to Reuters, the German carmaker plans to save 3 point 7 billion euros by 2021 by slashing 23 thousand job cuts in Germany alone. 

    Reuters also reports that VW's union leaders agreed to the cuts in exchange for a pledge to invest in electric cars.


    With Volkswagen what investors would like here is that the management has what it takes to put cuts into action. There has been so much skepticism largely down to the fact the supervisory board make up within the VW which is quite unique. 

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  • Dominic Bunning, FX Strategist at HSBC joins us live to discuss his outlook for currencies:

    You need to be selective in terms of your currency choices. I don't think its a dollar bull run against everything but I do think if you look at the outlook for emerging market currencies, particularly the high yield currencies at the moment, it is very hard to have a positive currency view. 


    In G10, everything is driven by politics. If you have got a strong political view, if you think the euro is going to break up then by all times sell the Euro. 
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  • LafargeHolcim has cut its medium-term profit outlook at its Capital Market Day. However the building materials company pledged to return cash to shareholders with buybacks of up to 1 billion swiss francs over the next 2 years and an increase to the dividend by half a franc. 

    Eric Olsen, CEO of LafargeHolcim joins us live to discuss these numbers:

    Last year when we set our guidance we said it was constant scope and constant efforts. Over the last year we successfully launched an investment programme of 5 billion CHF, of which 4 billion CHF is complete. 


    We are on track to delivering the synergies of our merger and we are well on track. In the course of working on those synergies we identified cost saving - these are good business decisions. We have reduced our overall corporate organisation and putting that in place and in several different countries we have reduced our fixed costs.

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  • European futures point to a higher start to the trading day as investors eye Mario Draghi's speech later today:

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  • The future of US-China trade relations under a Trump Presidency will be front and centre at the upcoming Joint Commission on Commerce and Trade, when China's State Council Vice Premier Wang Yang visits Washington on Monday. 

    Stephen Roach, Senior fellow, Yale University and Former Chairman of Morgan Stanley Asia joins us live to discuss more:
    It is a two-way relationship. The United States depends on China and China depends on the U.S. so if the U.S. goes towards the unilateral tariffs or this absurd currency manipulation charge we can expect retaliation from China. China is America's third largest export market and the largest buyer of Treasuries.


    We is still committed to building the wall, he is committed to walking out of the TPP, he claims he wants to renegotiate NAFTA. There is an awful lot with respect to trade and globalization. With China, there is a different opportunity that he needs to think about. 
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  • In this week's trader poll we asked: what is your Trump Trade?

    The results are in - and 59 percent of you believe that buying favoured sectors is the best trade after Trump's victory. Moving to Canada came in second with 27 percent percent, and shorting emerging markets was third with only 14 percent. 

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  • Global hedge funds have posted a negative 0.5 percent return during October, breaking a six month run of positive returns.  

    CNBC's Gemma Acton tells us more:
    You still see a lot of money flowing into CTAs - commodity trade and advisors - the more managed futures strategies. They are the second worst performing strategies this year. October is a fickle market. They don't like fickle market.


    One of the reasons they are looking forward to a Trump presidency is because of volatility. Hedge Funds are trying to move towards strategies that offer longer term private capital and that's particularly since the Trump victory as well. 
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  • As the dollar hits a 13 and a half year high, there are increasing concerns of a flight from emerging markets. But according to a survey of financial market participants compiled by Deutsche Bank and the Financial Times, a clear majority are convinced of an EM revival. 

    Satvinder Singh, Head of Global Securities Services & Head of GTB EMEA at Deutsche Bank joins us live to explain the results:
    We asked them what excites them about the future. There were three themes that came out. The underlying theme was volatility and how they are dealing with volatility. The first theme was regulation, the second theme was technology and the third theme was emerging markets.


    A lot of our clients have said they see emerging markets coming back in 3-6 months. However there are things that those countries need to work on. India, China, Indonesia are big blocks of markets that the investors are genuinely interested.
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  • European markets are now open for trading with the Stoxx Europe 600 opening at 0.38 percent:

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  • Let's take a look at the best and the worst performing sectors. Banks are leading the index, up 0.88 percent:


    Meanwhile, Basic Resources is the worst performing Stoxx sector this morning, down 1.05 percent:

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  • Major European indices are in positive territory this morning, except for FTSE 100 that is struggling to make gains:

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  • Volkswagen is reportedly preparing to cut 30,000 jobs worldwide at the VW brand. According to Reuters, the German carmaker plans to save 3 point 7 billion euros by 2021 by slashing 23 thousand job cuts in Germany alone. 

    Shares in VW are up 2 percent:

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  • LafargeHolcim has pledged to return cash to shareholders with buybacks of up to 1 billion swiss francs over the next 2 years and an increase to the dividend by half a franc at its Capital Markets Day. 

    Shares in the company are down nearly 1 percent:

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  • Another reminder that ECB President Mario Draghi is due to give a keynote speech in Frankfurt in the next 10 minutes or so.  We will bring you that live 


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  • U.S. 10-year Treasury yields set for biggest two-week rise in 15 years; up 55 basis points. That's according to Reuters.

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  • ECB President Mario Draghi says euro area recovery still relies to a considerable degree on accommodative monetary policy. He says the ECB will continue to act, as warranted, by using all the instruments available within the central bank's mandate. 
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  • ECB's Mario Draghi is due to speak at the eurofinance week in Frankfurt but his speech has already been published on the ECB website. Here's what he says about the banking sector:

    We need a strong banking sector to support the economy through the recovery. But if there is one lesson we can draw from the past decade, it is that to be genuinely robust, the banking sector must be well-regulated. Indeed, there is a widespread agreement that one of the main causes of the global financial crisis was the excessive deregulation of the financial sector in the previous two decades.

    The financial origins of the crisis explain in turn the slowness of the economic recovery. Banks that overextended credit in the upswing had to clean up their balance sheets and strengthen their capital. Firms and households that took on excessive debt had to deleverage. And that combination depressed both credit supply and demand.

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  • ECB's Mario Draghi is due to speak at the eurofinance week in Frankfurt but his speech has already been published on the ECB website. Here's what he says about the issue of non-performing loans:

    The non-performing loan (NPL) ratio has been decreasing in the euro area, even if modestly. Critical in this context was the Comprehensive Assessment of bank balance sheets – including an asset quality review of great depth – which encouraged banks to frontload the strengthening of their balance sheet. While NPLs remain high in some countries, the problem today is more related to profitability than to the robustness of balance sheets, since coverage ratios are close to 50% and much of the remainder is collateralised.
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  • Volkswagen in a press conference confirms plans to cut 23,000 jobs from 120,000 workforce in Germany by 2020. 

    The VW brand aims to achieve positive earnings effect of EUR3.7 billion from 2020. The company rules out forced layoffs to achieve job cuts. This according to Dow Jones.

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  • ECB President Mario Drgahi is now addressing the euro finance week in Frankfurt. 



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  • The euro is trading a one-year low against the dollar, however not a massive impact from ECB President Mario Draghi's speech:

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  • It's a busy morning as ECB President Mario Draghi is delivering a key note speech in Frankfurt and the VW press conference is taking place at the same time. We will bring you the latest from both:

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  • ECB President Mario Draghi is delivering a key note address in Frankfurt. Here's what he has to say about the banking sector and lending in Europe:

    Since mid-2014, bank lending rates have fallen by almost 100 basis points for both euro area households and corporates. Small and medium-sized enterprises have benefitted from even larger declines. Lending volumes, in turn, have posted positive growth rates for households since end-2014, and for non-financial corporations since the last quarter of 2015, following multi-year declines.

    And financing conditions have improved in capital markets too, which has been followed by a pick-up in corporate bond issuance.

    This credit reversal has in turn supported a second benign characteristic of the recovery: the fact that it has become increasingly driven by domestic sources of growth.


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  • ECB President Mario Draghi is delivering a key note address in Frankfurt. Here's what he has to say about employment outlook:

    The temporary post-Lehman rebound in 2010-11 was essentially a jobless recovery. The current recovery, however, has reduced the unemployment rate from more than 12% in 2013 to 10% today. And, besides lower unemployment, the overall labour force has expanded as well in recent years, reflecting increasing labour participation rates.

    A faster return to full employment – or what economists call the “non-accelerating inflation rate of unemployment” – is clearly supportive of price stability, since it heralds a tighter labour market and stronger wage pressures. And while those pressures might be somewhat offset by the increasing number of people entering the labour force as the recovery strengthens, a larger workforce will ultimately support both supply – by raising potential growth – and demand.
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  • Volkswagen brand CEO says VW to cut up to 30,000 jobs worldwide in coming years. The company's CEO says there are tough turnaround programmes in North and South America. That's according to Reuters.
    by Spriha Srivastava edited by david.reid 11/18/2016 8:48:28 AM
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  • Volkswagen CEO says to unveil new brand strategy in coming weeks. That's according to Reuters. 

    Shares in Volkswagen are trading higher this morning:
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  • CNBC's Nancy Hungerfors joins us live on the set to discuss VW's announcement of job cuts as part of its strategy overhaul:


    The fact that Dr. Diess was brought in from BMW where was really applauded for the cost cuts he did there. He was brought into Volkswagen before diesel gate even became an issue. So to that extent we knew these were coming.

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