World Markets Live - November 2 - CNBC Live Events
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CNBC Live Events

World Markets Live - November 2

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

  • Good morning everyone,

    Before we get going here are some of the earnings and data to watch out for. All of these times are now GMT.

    Earnings:

    06:00 Lufthansa
    06:00 Hugo Boss
    07:00 Persimmon
    07:00 Next

    Economy:

    07:00 UK Nationwide house price data
    08.15 Spain manufacturing PMI
    09:00 Euro zone manufacturing PMI
    09:30 UK construction PMI

    Opening Calls: 

    FTSE 6880 -37
    DAX 10442 -84
    CAC 4431 -61

    Comment ()
  • Here are your headlines:

    • Volatility spikes as the VIX breaks above 20 and the S&P marks its longest losing streak since August 2015.  Investors bail out of risk assets in the run up to the Fed meeting and narrowing election polls. 
    • Asia catches the U.S. cold, as the Nikkei leads markets to 7 week lows. European futures also point lower. 
    • Donald Trump makes an unprecedented call for Clinton voters to cancel their ballots and submit new ones voting for him, as a poll of polls show the Republican around 2 points behind his Democratic rival. 
    • Russian Revelations. Microsoft says hackers linked to the Russian military have exploited a Windows flaw as President Putin looks to strip the software out of government offices and firms.
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  • This is where the U.S. markets finished yesterday. And below is a selection of Asian indices which are still trading.

    Steve is on air saying he is not yet buying in to any story of "markets on a precipice"as the declines are moderate given recent positive rallies.


    Negative sentiment in Asia

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  • Pauline is in Singapore with the current snapshot on Asia markets and those Trump presidency jitters.

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  • The Dow Jones industrial average momentarily broke below 18,000 yesterday, with Apple contributing the most losses, before closing about 100 points lower. 

    The S&P 500 momentarily broke below 2,100 for the first time since early July.

    Any surprises out of the political front could further frazzle the market today, as could any surprises from the Fed

    John Hardy, FX Strategist at Saxo Bank says in the event of a Trump victory, then watch out for big moves in the Mexican peso and Canadian dollar. 

    He says a Clinton victory brings a stronger dollar as it means continuation and perhaps ups the pressure on the Fed to pursue a program of interest rate rises.

    Hardy:; Clinton win means a stronger dollar 

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  • Donald Trump is calling on people who have already voted for Hillary Clinton to cancel their ballot and vote for him. NBC's Brian Mooar has the latest from Washington.

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  • Microsoft says a group of Russia-linked hackers have exploited a previously undisclosed security bug in its system.

    The U.S. software giant has also also criticized Google for disclosing the flaw before it could be fixed. 

    Is Putin ditching western software?

    In the meantime, Putin is trying to push Microsoft and its products out of Russia, according to NBC News citing a U.
    S. senior intelligence official. 

    The Russian leader is planning to replace foreign software with domestic alternatives, and has already blocked LinkedIn, which is being bought by Microsoft. 
    Comment ()
  • Shares in Yum China have rallied in their first day of U.S. trade after the spin-off from its parent company. 

    Although the entity is now cash rich, Eunice Yoon sums up the challenge of entering the now highly competitive food scene in China.

    People just don't dream about eating at a KFC anymore.


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  • A reminder of our headlines:

    • Volatility spikes as the VIX breaks above 20 and the S&P marks its longest losing streak since August 2015.  Investors bail out of risk assets in the run up to the Fed meeting and narrowing election polls. 
    • Asia catches the U.S. cold, as the Nikkei leads markets to 7 week lows. European futures also point lower. 
    • Donald Trump makes an unprecedented call for Clinton voters to cancel their ballots and submit new ones voting for him, as a poll of polls show the Republican around 2 points behind his Democratic rival. 
    • Russian Revelations. Microsoft says hackers linked to the Russian military have exploited a Windows flaw as President Putin looks to strip the software out of government offices and firms.
    Comment ()
  • Lufthansa's adjusted earnings before interest and tax fell 6.5 percent  to 1.15 billion euros as sales fell back 111 million euros to 8.8 billion.

    The third quarter net profit figure rose steeply to 1.4 billion euros, but was padded by a one time settlement on pension plans.

    The airline said it has cut its full-year capacity growth to 5.2 percent from 5.4 percent.

    Lufthansa: sales slipping as profit rises 

    Comment ()
  • Hugo Boss has offered up a third quarter revenue of 703 million euros, just shy of analyst forecasts. The figure distills down to a net profit of 76 million euros.

    The firm is reconfirming its outlook for 2016 as a whole.

    Hugo Boss: Currency adjusted sales fell 3% in third quarter 

    Comment ()
  • On set is Paul Mortimer-Lee, Global Head of Market Economics & Chief Economist for North America at BNP Paribas.

    He suggests keeping an eye on the number of dissenters in the FOMC. He says this month he expects the numbers of hawks to fall to just two - but rather than signalling a more dovish tone, it actually points to more consensus within the Fed for a hike in December. 

    Mortimer-Lee: Keep an eye on Fed dissenters

    Mortimer-Lee says data suggests the Fed is able to edge interest rates up but not much more. He says the Fed will do as much as possible not to rock the boat. 
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  • Shares of Eli Lilly fell more than 1 percent after Senator Bernie Sanders tweeted a critique of the company's price increase of a diabetes drug. 

    It is the latest in a string of attacks on the pricing policies of pharmaceutical companies from Democrats.


    An Eli Lilly spokesman told CNBC the company is committed to giving patients the care they need, but there is no easy solution to the pricing problem. 

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  • Recent downward pressure on oil prices is continuing. Crude and related investors await U.S. stockpile figures later today after industry data showed a surprise build in inventories.


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  • Danish shipping and oil group Maersk has reported third quarter net profit of $426 million.

    The third quarter revenue was $9.18 billion, just shy of forecasts.

    We're joined by the CEO of Maersk in about 45 minutes time.


    Comment ()
  • Jeff Fairburn, CEO of U.K. house-builder Persimmon is on air to discuss his company's results which reveal the company is fully sold up for the current year.,.

    The firm third quarter private sales rate has increased 19 percent and he says post-Brexit vote business remains encouraging.

    Fairburn says most of his product is aimed at the lower end of the housing market where he sees demand remaining strong. He says the firm is prepared for a down tick in industry sentiment in 2017.


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  • Peter Toogood, Managing Director Investment at The Adviser Centre is on set as guest host.

    He kicks off by claiming one of the hardest jobs as present is being a money manager because there is no price discovery.

    When you buy a bond based on whether the ECB will buy it or not  and not on whether it is fundamentally a good investment, then you have no price discovery.

    Toogood says everyone is now buying cash flow which has now become very expensive.

    Toogood: There currently is no price discovery

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  • Asian markets are now largely closed, although within the list below the Hang Seng is still trading. 

    It seems some polling data suggesting that Donald Trump is well and truly back in the race to win the U.S. presidency has truly rattled markets.


    Comment ()
  • European futures are pointing to a negative open. That a continuation of equity trading action seen in the U.S. yesterday and Asian markets overnight.


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  • Here are your top headlines this morning:

    • Europe catches the U.S. cold as the S&P marks its longest losing streak since August 2015. Investors bail out of risk assets in the run up to the Fed meeting and narrowing election polls.
    • Donald Trump makes an unprecedented call for Clinton voters to cancel their ballots by submitting new ones voting for him, as a poll of polls show the Republican around 2 points behind his Democratic rival.
    • Not ship-shape. Moller-Maersk profits sink 44 percent as weak container rates hit its shipping business, with the group warning full year guidance is subject to considerable uncertainty. 
    • Safe as houses for Persimmon which reports margin improvement and a solid order book but the U.K. homebuilder admits Brexit uncertainty will continue for some time.
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  • Peter Toogood, Managing Director Investment at The Adviser Centre, suggest what investors should do if Donald Trump is elected U.S. president.

    You think about where the peso goes. You buy Swiss francs and gold if you think Trump’s going to win. It’s a really easy strategy, actually. 

    Short the peso, go long gold and Swiss franc – you’ve got your perfect “Trump is elected" strategy.

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  • Are the effects of Brexit starting to making themselves felt on British house market?

    Nationwide data shows house prices were unchanged in October for the first time after 15 straight monthly increases.

    On a year-on-year basis the nationwide figure slipped to growth of 4.6 percent.

    CNBC’s Gemma Acton reports on how this affects property sellers in the U.K.

    I think the people who are worried are people who have to sell. If you have an expensive house and you don’t have to sell, you might be able to ride this out. It depends on how long you think this lasts.

    Despite these concerns, unchanged house prices offer little help to buyers.

    There’s a record low number of stock on estate agents’ books at the moment. Given there is such a low amount of stock at the moment, there is very little buyer choice. 

    So buyers, if they really like a property, they don’t have much to choose from and they may pay for it if they want to. So that is helping sellers to some extent.

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  • Gold prices were near a one-month high on Wednesday.

    Concerns about the prospects for markets as Donald Trump rises up the polls for the U.S. election have been a boost for safer assets, such as the precious metal.

    Comment ()
  • Maersk Group's third quarter profit fell 44 percent in the third quarter, dragged lower by weaker freight rates and oil prices. 

    Third quarter net profit and EBIT missed analyst estimates, while the Danish shipping and oil giant said it expected to report a "significantly lower" full-year underlying result than last year's 3-point-1 billion dollars. 

    Søren Skou, CEO of Maersk Group says the firm cannot be happy with the results, which he says is almost entirely due to a slump in freight rates, despite maintaining volumes.

    He said the firm is progressing with the strategic plan to separate out the oil and energy business from the shipping and logistics division.

    We will update the markets on that in December and the third quarter results do not affect our intended strategy.


    On the Maersk Oil business, Skou said the firm is quite pleased with the performance. He said the strategy for Maersk Oil is to be profitable at today's crude price.




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  • Oil prices continue to fall for a fourth day. 

    Data showed U.S. stockpiles grew by 9.3 million barrels in the week to October 28, adding to concerns about a persistent global glut of oil.

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  • Stocks move lower at the open bell in Europe. Markets have been moving lower for several days, impacted by concerns over the U.S. election.

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  • Here's a look at the individual European bourses following the market open.

    Click or tap on the arrows to switch between charts. As you can see there are a couple of markets still waking up.

     
     

    1 of 2

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  • Banks have been one of the worst performing sectors in Europe over the last year. Already, the banking sector is down more than 1 percent in trade on Wednesday. 

    Here's a look at the banking sector over the past 12 months.

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  • Oh dear. As we just pointed out Maersk's third quarter profit fell 44 percent in the third quarter and as stocks open, investors have shipped out.

    The company says it is to split in to two to from Maersk oil and Maersk shipping and logistics.

    Shipping rates are cited as the biggest issue affecting the firm.

    The stock opening down just less than 8 percent.


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  • Shares in German airline Lufthansa are down around 0.8 percent in morning trade on disappointing third quarter earnings.

    The company reported earnings before interest and tax fell 6.5 percent in the last quarter.

    Here's a look at the share price over the last 3 months.

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  • On set is Ben Gutteridge, Head of Fund Research at Brewin Dolphin .

    He is overweight equities and in particular likes U.S. stocks.

    Despite the political risk out there of a Trump presidency he rejects the notion of escaping short-term to cash, describing that as an expensive strategy.

    Gutteridge: Happy to keep a hold of U.S. stocks 

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  • Stocks in Italian bank Monte dei Paschi di Siena have been suspended from trading after the share price fell 6 percent shortly after the market open.

    The share price was knocked after a rescue plan for the bank was withdrawn.

    Here's a look at the bank's share price movements over the past 3 months.

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  • These are the best and worst performing stocks in early morning Wednesday trade.

    Click or tap on the arrows to switch between charts.

     
     

    1 of 2

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  • The euro has risen sharply against the dollar this morning, currently up around 0.4 percent.

    Here's a quick look at how the euro has performed against the greenback over the past 7 days.

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  • Positive data about Spanish manufacturing has emerged this morning.

    Spain's October manufacturing PMI rose to 53.3, from 52.3 in September. This was the fastest rate of growth since April.

    New orders also rose to 53.7, from  52.8 in September.

    Despite the positive data, the Spanish stock market is currently down around 1.2 percent. Here's a look at the market's performance over the past 30 days.

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  • Investec has cut its rating on U.K. clothing retailer Next after the firm reported that full price sales has fallen 1.5 percent on the same quarter last year. 

    The firm said August sales were subdued following a large end of season sale in July. september also struggled in comparison to 2015 while October sales improved.

    The company has struggled with a warmer Autumn and a decline in sterling and has been forced in to discounting a large number of items.

     Source: Next

    The firm's CEO has said today that the macro economic backdrop for 2017 "doesn't look exciting".

    Big drops on the share price in the last 12 months, but a slight uptick this morning.

    Investec has cut Next target to 4580 pence 

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  • These are the top news headlines at the half hour:

    • European stocks compound the global sell-off, with banks across the continent leading the declines. Investors bail out of risk assets in the run up to the Fed meeting and narrowing election polls.
    • Donald Trump makes an unprecedented call for Clinton voters to cancel their ballots by submitting new ones voting for him, as a poll of polls show the Republican around 2 points behind his Democratic rival. 
    • Not ship-shape. Shares in Moller-Maersk sell-off after profits miss
      forecasts
      , sinking 44 percent, and the group warns full year guidance is subject to considerable uncertainty.
    • A cut above the rest. Hugo Boss sees green as the German fashion house beats forecasts and returns to sales growth in China.
    Comment ()
  • Connor Campbell, marketing and financial analyst at Spreadex, explains how European markets have reacted to the increased possibility of Donald Trump winning the U.S. presidential election.

    A fresh batch of pre-US election jitters has swept the markets this morning, investors fretting over news that Trump has taken the lead in a national poll.
     
    While Clinton is still ahead in the majority of surveys, the fact that the orange-faced Republican nominee has clawed his way back to being a potential victor in the aftermath of the FBI email scandal has sent a wave of fear through first the Asian markets, and now the European open. 

    While that means the FTSE has dropped 15-30 points, taking it under 6900 for the first time in over a month, with the DAX and CAC also shedding 0.6% apiece, it has led to a moment of respite for the pound, which rose back above 1.22 against the weakened dollar. 
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  • Karen has a 60 second rundown of the big stock movers early in Wednesday trading.

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  • The dollar has shipped half a percent against the yen in today's session. That reaction seen as a safe haven trade by investors who are exhibiting uncertainty over what a Donald Trump presidency could mean for assets.


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  • Scott Moeller, director of the M&A research centre at Cass Business School, says the merger between Baker Hughes and GE will work out well.

    I think what really kind of shows from these, and it’s actually something these kinds of spin-off deals, is it can be a win-win and from that perspective it wasn’t surprising that on the day both share prices went up – lots of synergies and more synergies that that business can get out of GE with Baker Hughes, than it can get within GE.

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  • Disappointing data for Italy has just come out. Factory activity within the country slowed in October.

    The October manufacturing PMI orders index fell to 50.4 versus 51.5 in September, coming in below forecasts.

    The PMI index also slipped from 51 to 50.9. A Reuters survey had expected the figure to accelerate to 51.4.

    The Italian stock market has slipped around 1.2 percent in Wednesday trade. Here's a look at the chart of the last 30 days. 

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  • CNBC’s Arjun Kharpal reports on his conversation with Netflix’s chief content officer, Ted Sarandos, about the possibility of offline streaming for customers.

    Offline streaming could be quite an important strategy for Netflix as it looks to expand into new areas. As we heard from Ted Sarandos, he said that this is a feature that is most likely to come to emerging markets and new economies where maybe broadband speeds aren’t as fast. 

    Here's a look at Netflix's share price performance year-to-date.

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