World Markets Live - November 23 - CNBC Live Events
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CNBC Live Events

World Markets Live - November 23

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

  • As we get underway, here are your top stories:

    • Donald Trump keeps markets guessing on his policy intentions, softening his stance on climate change and stepping back from a campaign pledge to investigate Hillary Clinton.
    • U.K. Chancellor Philip Hammond prepares to outline his budget plans to help those who are 'just about managing', but Brexit uncertainty seen hampering his plans
    • OPEC eyes an oil output cut of over 1 million barrels a day as reports indicate that experts in Vienna are closing in on a deal to present to the ministers next week. 
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  • And IG's opening calls for European market today look like this:

    FTSE 6,856 +42
    CAC 4,564 +18
    DAX 10,744 +36

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  • The markets in Asia are on the front foot. Bear in mind that the Japanese markets are closed today.


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  • A $34 billion U.S. auction of 5-year notes sent yields on the 2-year briefly to the highest level since April 2010, with 5-year notes approaching 11-month highs. 

    Treasuries yields have jumped since Donald Trump's victory with the bond market sell-off spurred by expectations of higher spending and interest rates under the President-elect.

    5-year U.S. debt yields sitting near 11-month highs

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  • OPEC will debate an oil output cut of between 4 and 4.5 percent at its meeting in Vienna next week. This according to Reuters. 

    The deal wouldn't include Libya or Nigeria, but it's understood that Iraq and Iran also have reservations with Iraq's foreign minister saying on Tuesday that OPEC should allow the country to continue raising output without restrictions. 

    If a cut were to be made, OPEC's current output would reduce by more than 1.2 million barrels per day. 

    Oil prices are about half a percent lower in session after traders exhibited doubt about the willingness of Iraq and Iran to agree the deal.


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  • I don't think I'd own much in the government space outside of the front end of the curve. 

    Owen Murfin, Co-lead manager for Global Bond strategies at BlackRock telling Steve his short term strategy for allocating government bonds. 
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  • HP shares down in after hours trading as the company delivered a cautious outlook on earnings for the coming quarter. It's fiscal fourth quarter numbers met expectations on the bottom line and beat on revenue.

    Separately shares in Hewlett Packard Enterprises, the enterprise company containing the servers, storage, networking and IT services business, slipped as it beat on earnings but missed on the top line.


    Our colleagues in the U.S. will be speaking with Meg Whitman, the Hewlett Packard Enterprise CEO at 09:00 a.m. ET / 3 p.m. CET.


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  • Europe's third-largest insurer, Generali, is holding its investor day in London and Julia has gone to talk to the CEO, Philippe Donnet.

    The Italian listed firm has confirmed its 2018 targets, aiming to achieve a net free cash flow of more than 7 billion euros and cumulative dividends of more than 5 billion. 

    On the risk of the Italian referendum on constitutional reform, Donnet says while he cannot predict the result he is optimistic Italy will continue to implement political and structural reform.

    Philippe Donnet, CEO of Generali talks with Julia

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  • Major data and events for Europe this morning can be boiled down to the following. All times are London time zone.

    08.00: French manufacturing/services PMI

    08.30: German manufacturing/services PMI

    09.00: Aggregated euro zone PMI's

    12:30: UK chancellor’s Autumn Statement
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  • Chancellor Philip Hammond will today deliver the UK's first budget since the Brexit vote. He's widely expected to increase government borrowing, despite the fact the UK economy is faring better in the wake of the June referendum than many economists had forecast. 

    Stood outside the Houses of Parliament, Geoff says the chancellor is under considerable pressure as budget forecasts are likely to fall while inflation expectations tick up.

    A cold morning outside the U.K. Houses of Parliament 

    We'll be bringing you the Chancellor's speech live from 13:30 CET. 


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  • At this hour, your headlines look like this:

    • Donald Trump is met with boos and cheers as he keeps markets guessing on his policy intentions - softening his stance on climate change and stepping back from a campaign pledge to investigate Hillary Clinton. 
    • Philip Hammond prepares to outline his budget plans to help those who are 'just about managing', but Brexit uncertainty could tie the U.K. Chancellor's hands when it comes to unwinding austerity policies. 
    • OPEC eyes an oil output cut of over 1 million barrels a day as reports indicate that experts in Vienna are closing in on a deal to present to the ministers next week. 
    • Infineon targets higher margins as it sees a boost from a new plant and foreign exchange moves but the semiconductor firm misses on the bottom line in quarterly results.

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  • U.K. travel operator Thomas Cook has released full year earnings figures.

    Revenue fell 4.5 percent to £7.81 billion while net profit came in at £12 million.

    The firm said the impact on Turkey as a destination had been offset by a shift to alternative destinations.


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  • If I earn £50 a day but  I spend £70 a day, it isn't austerity if I reduce my expenses to £60 a day. 

    That is still living outside of my means.

    Steve outlines the problem that the U.K. government faces as it tries to reduce deficits while stimulating growth. 

    A neat trick if you can do it.
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  • After the Dow finished above 19,000 for the first time ever last night, the good feeling on equities look likely to extend to European markets.


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  • What are food prices set to do in 2017?

    Grains, dairy and beef prices have already seen declines in 2016 due to an oversupply, while palm oil, coffee and particularly sugar have seen signficant price increases year-to-date.

    Rabobank's 2017 Agricultural Outlook highlights staple foods like wheat, corn and soybeans - integral components of livestock diets across the world - as key commodities to watch next year as they are being stored in record volumes and are pushing food prices lower. 


    On air Stefan Vogel, Head of Agri Commodity Markets Research at Rabobank says reduced trade deals or protectionist policies,as espoused by Donald Trump, may not actually be good for farmers prices.

    It heavily depends, if you are sat in an oversupplied market and cannot move the product elsewhere, then your prices will go down.

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  • It wasn't just the experts who were surprised by Donald Trump's victory two weeks ago. Short sellers were also caught off guard from Trump's upset, and are now suffering the consequences. 

    CNBC's Eric Chemi has more. 

    by david.reid

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  • Lord Bilimoria, Chairman of Cobra Beer, discusses the government’s ambition is for Brexit.

    This government is not seeking a hard Brexit. A hard Brexit would be folly for the British consumer, for British business and for the British economy. What we’re going for is a smart Brexit, if at all Brexit happens by the way. We may not end up leaving the European Union in the way of a hard Brexit. We may end up being very much where we are at the moment with the best of both worlds, with some more control of immigration.

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  • Retired American military officer and former CIA director David Petraeus has suggested in a BBC radio interview that he would serve in a Trump administration.


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  • Russian energy minister Alexander Novak said Russia will take part in OPEC consultations on 28th November. However Mr Novak added that his country is yet to receive an invitation to the official OPEC meeting in Vienna on 30th.  

    Oil prices have enjoyed a bid in recent days on hopes of a co-ordinated supply freeze from major producers but fears that Iran and Iraq won't agree a limit have checked buyer's appetite.


    On set Christopher Haines, Head of Oil and Gas at BMI Research  says getting Iran or Iraq to agree to a 4 to 4.5 percent cut in output will be a difficult challenge.

    Haines says a 6-month deal will be palatable to most countries and a small oil production cut  won't hurt the gulf countries much.

     Christopher Haines, Head of Oil and Gas at BMI Research

    Christopher says the chances of Russia doing a freeze deal with OPEC countries is "pretty minimal".
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  • Lufthansa has been forced to cancel roughly a third of all flights Wednesday as Germany's pilots union goes on a two-day strike over a long-running pay dispute. This is the 14th strike to plague the airline in the ongoing dispute with the cockpit union. 

    Shares fell yesterday. The stock price is down around 3,5 percent over the last seven days.

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  • These are the stocks leading markets moves this morning.

     
     

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  • Oil stocks are in focus this morning, as OPEC eyes an oil output cut of over 1 million barrels a day. Reports indicate that experts in Vienna are closing in on a deal to present to the ministers next week. 

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  • The French flash PMI manufacturing data for November has come in at 51.5 versus 51.8 in October. The forecast figure was 51.4.

    For services, the French November PMI rose to 52.6  versus 51.4 in October.

    The composite figure has come in at 52.3, a rise from the final October figure of 51.6 and also better than forecast. 

    Bear in mind that anything above 50 indicates expansion.
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  • These are some of the key stocks to watch this morning.

    Both Thomas Cook and Infineon have reported their latest results. 

    Vinci shares are recovering after falling 20 percent yesterday on a fake statement. 

    Meanwhile, Lufthansa has been forced to cancel roughly a third of all flights today as Germany's pilots union goes on a two-day strike.

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  • Here's a look at where the major, individual European markets are heading in trade this morning.

     
     

    1 of 2

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  • The market is going up, apparently. It is the path of least resistance.

    Christian Gattiker, Chief strategist & Head of Research & Investment Solutions at  Julius Baer is live on air from Zurich.

    He agrees with our guest host Ashok Shah that in the short term, the market is overheating but says a base is being set for 2017 as investors adjust to new levels of interest rates.

    Gattiker thinks an earnings expansion is on the way in Europe and there will also be a shift away from bond proxy stocks to the cyclical part of the market. He said a major re-balancing is on the way.

    Ashok Shah (L) quizzes Christian Gattiker (R) 

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  • Taiwan's industrial output grew by 3.7 percent year-on-year in October.

    This was slower than expected. A figure of 4.8 percent was estimated by polls. 

    Output was slower than September's figure of 4.56 percent year-on-year.
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  • Stocks in the basic resources sector are leading European markets higher. The sector is up around 1.4 percent this morning.

    Here are the winning and losing sectors this morning.

     
     

    1 of 2

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  • The banking sector is the biggest loser in markets this morning.

    The sector has struggled over the last 12 months, down around 17 percent.

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  • Christian Gattiker, Chief strategist & Head of Research & Investment Solutions at Julius Baer says the theme of capital returning to the U.S. dollar will be a challenging theme for emerging markets through much of 2017.

    Gattiker says there are signs that holders of EM assets will need to show patience but bond holders of emerging market paper may be the first to benefit as new price floors are found.


    On commodities Gattiker says he sees no shortage whatsoever of capacity for the next 12 to 24 months.

    On oil particularly, the Julius Baer man says OPEC's influence is now "broken" and the price can no longer be controlled by the cartel.
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  • Germany's flash PMI manufacturing data for November has come in at 54.4, under forecasts of 54.8.

    The flash services number for November was 55, above forecasts of 54 and rising from October's figure of 54.2.

    The composite PMI result was 54.9, below forecasts of 55 and dipping from October's figure of 55.1.

    Any figure above 50 indicates expansion.


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  • The German DAX has ticked up following the release of the latest PMI data. It had fallen after the open.

    So far this week, the index is up around 0.6 percent.

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  • President-elect Donald Trump, who in his campaign pledged to 'cancel' the 2015 Paris climate agreement, has now said he has  "an open mind" about the deal. In a wide-ranging interview with the New York Times, Trump offered that there is "some connectivity" between global warming and human activity. 

    Crowds that gathered at the New York Times building both booed and cheered the President-elect as he left the meeting. 


    Meanwhile former Republican Presidential Candidate Ben Carson has been offered the post of Secretary of Housing and Urban Development in President-elect Donald Trump's cabinet. The retired surgeon dropped out of the Presidential race in March and soon after backed Trump. A spokesman for Mr Carson said he will consider the offer over the Thanksgiving holiday. 

    Carson: considering Trump's offer 

    Trump is also considering former Democratic Representative Harold Ford Jr of Tennessee for the position of Transport Secretary, according to a report from Politico. The ex-Congressman, now a Managing Director at Morgan Stanley, served five terms in Congress and endorsed Hillary Clinton in the 2016 race. He is reportedly a close friend of Trump's children, including Donald Jr, Ivanka, and her husband Jared Kushner. 

    NBC's Brian Moore has more on the meeting between Donald Trump and the New York Times.
    by david.reid

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  • Colin Stanbridge, CEO of the London Chamber of Commerce and Industry, says his members are looking for some certainty about the future in today’s Autumn Statement by U.K. finance minister Philip Hammond.

    We’ve been in such uncertain times since the Brexit referendum and the election of Donald Trump, what the future actually holds for those businesses when we come to trigger Article 50 in March of next year. I think what (our members) will be looking for is some sense of there’s going to be some certainty going forward.

    Stanbridge says businesses don't need a running commentary on Brexit negotiations, but at least want to know the general direction of travel in the negotiations. 

    If you were cynical, I'd say the real reason we're not being told is either they can't agree or they don't know.

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  • Meanwhile Chuka Umunna, Senior Labour MP and former Shadown Business Secretary is on set. 

    He says the effects of Brexit on corporations should not be downplayed 

    Take Vauxhall, owned by GM. The depreciation of sterling that has already cost them this year $100 million They forecast $400 million cost over the full year. 

    Why that matters is because they are deciding whether to make a new range of cars here in the U.K.

    Umunna: Jobs and wages are a key concern  

    The Labour politician and former business secretary says one thing that should be considered is reducing VAT temporarily to help struggling U.K families.

    Umunna says to be competitive, Britain would be foolish to "race to the bottom" by lowering wages and stymieing conditions.

    On suggestions by Donald Trump that Nigel Farage should be a U.K. ambassador, Umunna said Britain needs to send a clear message that it is the Queen and government only that selects appointees.
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  • Shares in U.K. estate agents are tanking today on concerns that the country's finance minister will clamp down on agency fees to provide relief to tenants.

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  • German leader Angela Merkel has told her parliament that the country will move in the direction of spending 2 percent of GDP on defense. The chancellor did warn however that it won't happen in the near term.

    To put the comments in to context, the 2 percent level is a non-binding level expected of all NATO members.

    Donald Trump has previously said he expects NATO partners to up their spending on defense or they can expect a reduction of support from the United States.

    The U.S. accounts for about 21 percent of NATO's common budget and provides the majority of of military might to the alliance.

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  • PMI data for the euro zone has been released.

    Flash November manufacturing PMI was 53.7, the highest since January 2014.

    Flash November services PMI was 54.1, above forecasts of 53 and higher than October's 52.8.

    And flash November compositie PMI was 54.1, an 11-month high and beating forecasts of 53.3.

    A number above 50 indicates expansion.
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  • Stephen Macklow-Smith, Head of European Equity Strategy at JP Morgan, says he expects economic fundamentals to improve, but political events are a wildcard.

    One of the issues we’re facing is the fundamental tailwinds in Europe are being overshadowed by the political headwinds. So people are concerned about elections that are coming up next year.

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  • Gold prices have dipped today, continuing the metal's losing streak.

    An improved U.S. economic outlook and high expectations of a Federal Reserve interest rate hike has knocked the price of the precious metal.

    Here's a look at the seven day performance of the commodity.

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  • U.K. finance minister Philip Hammond is giving his first budget statement today, which is expected to try and help the “just about managing” demographic. Jonathan Reynolds MP, Shadow Economic Secretary at Labour, says these are people who do need the government’s help.

    They are people going out to work, they’re on low incomes, life’s pretty tough. If inflation rises, as we think it will do, they’ll be the ones getting even more pain in future. 

    Reynolds criticised planned cuts to Universal Credit and work allowances and says these cuts need to be reversed.

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  • Vivendi has announced it has purchased additional Telecom Italia shares, bringing its stake back to previous levels after an earlier dilution of its holdings. 

    The French media group said it now holds over 23 percent of the Italian mobile network company, as Vivendi Chairman Vincent Bollore seeks to expand Vivendi into a European media powerhouse.

    Vivendi shares are broadly flat this morning. Here's a look at the company's 3 month share price performance.

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