World Markets Live - November 7 - CNBC Live Events
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World Markets Live - November 7

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

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  • Good morning everyone. It's a new week and it is the U.S. elections week finally! After months and months of wait, it's finally around the corner. And in the latest turn of events, the FBI has let Hillary Clinton off the hook by saying there are no new grounds for prosecution after its latest email probe. Markets are cheering the growing optimism on Clinton and looks like we will see some rally in Europe too.

    Here are your morning calls for Europe from CMC Markets:

    FTSE100 is expected to open 52 points higher at 6,745
    DAX is expected to open 76 points higher at 10,335
    CAC40 is expected to open 33 points higher at 4,406
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  • Here are your top headlines at this hour:

    • Hillary is off the hook! The FBI says there are no new grounds for prosecution after its latest email probe - sending the Dow futures 200 points higher.  
    • A final poll puts Hillary Clinton 4 points ahead of Donald Trump as the NBC/Wall Street Journal assigns her 48 percent of the vote in a 2-way race. 
    • Investors shrug off a 86 percent drop in pretax profit from HSBC, as the UK bank books a big loss on the sale of its Brazilian business. 
    • Crude climbs as Algeria's oil minister says an OPEC deal will be done in November, while the CEO of Saudi Aramco tells CNBC exclusively he sees prices already going higher.
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  • Dow futures are up over 200 points on the news the FBI has completed its review of the newly discovered emails from Hillary Clinton's server - and has not changed its initial conclusion. 

    Writing to Capitol Hill lawmakers, FBI director James Comey confirmed there were no new grounds for prosecution. The move caps two weeks of controversy around the decision to go public with the new examination into the case, but following Sunday's announcement - the Republican camp is not happy. 

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  • Following Sunday's announcement - the Republican camp is not happy. NBC's Jennifer Johnson has the full story

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  • Peter Trubowitz, Professor of International Relations and Director of the United States Centre, LSE joins us live to discuss the upcoming U.S. elections:

    I don't think the FBI decision last night will change things very much. I think what the FBI investigation did it gave the Republicans who were on the fence, an opportunity to rethink their decision.


    It is not that the undecided voters increased overnight on the FBI. It increased enthusiasm among Republicans for Trump, they just couldn't sit it out.
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  • The CEO of Saudi Aramco believes that the global oil supply-demand balance is coming closer together. Hadley spoke with Amin Nasser at the Oil and Glas Climate Initiative in London and asked him for his outlook.

    I think it will start gradually going up in the first half of 2017. We see the gap between demand and supply closing - by start of 2017. The issue that we are seeing is even though we have additional supply, we have demand in 2016 and we expect it to continue to 2017.

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  • Shares in HSBC are trading higher in Hong Kong, despite weaker than expected results from the UK banking giant. 

    The group posted a 86 drop in pretax profit in the third quarter, mainly due to a one-off 1.7 billion dollar charge from the sale of its Brazilian business. HSBC's earnings were also hit by adverse foreign exchange moves. 

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  • Ryanair has upped its long term growth forecast to 200 million passengers per year as it posted second quarter profit slightly ahead of forecasts. The company also announced a 550 million euros buyback. However, Europe's largest carrier by passengers continues to warn about the risks of Brexit and weaker sterling.

    Michael O'Leary, CEO of RyanAir joins us live to discuss the company's results:

    I think running an airlines business is easier. The environment is good, you have got low oil prices so you have hedged it for the next 18 months. We have headwinds of Brexit which is a regulatory uncertainty for the next two years and it dampens sterling.


    While the UK economy is growing modestly, we are growing very strongly in Germany, in Poland. We are strengthening outside the UK. There is very little certainty around Brexit in the UK.
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  • Here are your top headlines:

    • Hillary is off the hook! The FBI says there are no new grounds for prosecution after its latest email probe - sending the Dow futures 200 points higher.  
    • Less than 24 hours to go and the final NBC News - Wall Street Journal poll gives Hillary Clinton a four point lead over Donald Trump. 
    • Investors shrug off a 86 percent drop in pretax profit from HSBC, as the UK bank books a big loss on the sale of its Brazilian business. 
    • Crude climbs as Algeria's oil minister says an OPEC deal will be done in November, while the CEO of Saudi Aramco tells CNBC exclusively he sees prices already going higher. 
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  • Less than 24 hours to go until poll stations open stateside and the final NBC News - Wall Street Journal poll gives Hillary Clinton a four point lead over Donald Trump.

    The survey came right before the FBI cleared her in its latest probe, saying that it is sticking with its recommendation in July not to prosecute the presidential candidate over the emails on her private server. 

    Michael O'Leary, CEO of RyanAir is on the set discussing the company's results and U.S. elections:

    I suspect like the rest of us I want it to get done. It's like Brexit.


    There are limits on Presidential power, you would still need support from Congress so businesses will go along. The U.S. economy is in good shape, they will benefit from low oil prices as the airlines industry. The job numbers are good. 
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  • UK Prime Minister Theresa May says the Government has a 'strong' case for overturning the High Court ruling, allowing Parliament to vote on the triggering of Article 50. 

    She made the statement after arriving in India on a three-day trade visit. Brexit Secretary David Davis will lay out the Government's response to the High Court ruling later today.




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  • Labour leader Jeremy Corbyn says his party won't block Article 50 from being triggered. However, he says Labour will be pushing the government for full access to the European single market as part of Brexit negotiations. 

    The Labour leader also welcomed the prospect of a fresh UK general election, telling the Mirror newspaper that his party was ready for the challenge. 

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  • CNBC spoke to Mayor of London, Sadiq Khan, who gave his thoughts on the Brexit ruling. 

    The key thing for the government is to show they have got a plan. They need a plan before Article 50 is served. Before we negotiate with the EU we need to see if the deal is good for the country.


    A hard brexit is no good for the London and the EU. What is important is access to single market. I have always said London needs to have a seat around the table when negotiations happen and that is still my view.

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  • Greek Prime Minister Alexis Tsipras has reshuffled his cabinet is a bid to speed up bailout reforms. Radical ministers were replaced with more flexible technocrats as Tsipras focuses on passing bills imposed by the country's creditors

    Among the most high profile changes: economist Dimitri Papadimitriou was appointed Economy Minister, while energy minister Panos Skourletis was moved to the Interior Ministry. The shipping minister has also been replaced, but Finance Minister Euclid Tsakalotos has kept his job.


    Addressing his new cabinet on Sunday, Tsipras said Greece should aim for a quick completion of the bailout review, so debt restructuring negotiations could start at a EU finance minister meeting on December 5th. The Greek Prime Minister said the debt-burdened country was "very near the end of a long period of very difficult decisions."
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  • The German prosecutor's probe into Volkswagen's market manipulation has now expanded to include Hans Dieter Pötsch, chairman of the supervisory board, who was CFO when the diesel emissions scandal broke in September 2015. The investigation was already looking into former CEO Martin Winterkorn and VW brand head Herbert Diess. 

    Separately, a U.S. regulator is investigating another software cheat in some Audi vehicles that may have lowered their carbon dioxide emissions, according to a report from German newspaper Bild am Sonntag.

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  • Here are your headlines at this hour:

    • Hillary is off the hook! The FBI says there are no new grounds for prosecution after its latest email probe - sending the Dow futures 200 points higher.  
    • The final NBC - Wall Street journal poll gives Hillary Clinton a four point lead over Donald Trump, as the boss of Ryanair - Michael O'Leary - tells us a win for the Republican candidate would be catastrophic.
    • Investors shrug off a 86 percent drop in pretax profit from HSBC, as the UK bank books a big loss on the sale of its Brazilian business. 
    • Crude climbs as Algeria's oil minister says an OPEC deal will be done in November, while the CEO of Saudi Aramco tells CNBC exclusively he sees prices already going higher
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  • Europe futures point to a higher start to the trading day as investors remain bullish on Hillary Clinton's win in the U.S. elections:



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  • Softbank's second quarter profit rose nearly 7 percent, boosted by a strong performance in its domestic telecoms division. The Japanese technology giant posted second quarter profit of 334.7 billion yen, topping analyst estimates of 287 billion.

    Shares of Softbank are up nearly four percent year-to-date. 

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  • Our guest host Andrew Sheets, Chief Cross-Asset Strategist, Morgan Stanley talks about the latest trends in markets:

    I think we are still very cautious about financials in Europe as compared to their counterparts in the U.S. In Europe their profitability is much more challenged than the U.S. What you are seeing is a result of two dynamics - low interest rate and a lot of consensus position is yield sensitive stocks.

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  • Hundreds of protesters clashed with police in Florence while demonstrating against Italian Prime Minister Matteo Renzi's constitutional reforms on Saturday. 

    Violent scuffles started when demonstrators tried to reach the venue where Renzi's Democratic Party was holding its annual conference. Italian media report that one officer was injured in the leg by a firecracker. 

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  • Angela Merkel's open-door refugee policy has caused a rift between the chancellor and her coalition partner. The leader of the CSU, Horst Seehofer, has admitted he was wrong to publicy criticize Merkel. But speaking at his party's annual convention, he said there should be a cap on the number of people allowed in the country. Merkel refused to take part in the event as a result of their disagreement over the government's migrant policy. 


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  • Investors have been piling into safe haven trades like gold and the Swiss Franc ahead of the U.S. vote, but we could see a spike in corporate bond volumes once America's new president is named, according to UBS.

    Isabelle Toledano-Koutsouris is EMEA Co-Head of Corporate Debt Capital Markets at UBS joins us live to discuss volatility in trading during U.S. elections:

    If Trump wins, you have a post-Brexit text book for the market. First you go down and then go up. People will realize there is a window of opportunity for people to come back to markets. Investors will step away and then come back to the market.


    We have yields backing up from very low levels so it is still very cheap to borrow. Your vote of confidence six months ago is not as shortsighted as the market have been in the year or so when people go from one event to the other.

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  • In case you are just joining us, here are your headlines

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  • Liquidity has been a topic for most of 2016 and it has just got  worse. 

    I think it will be how the ECB flags the tapering. 

    There was liquidity before, but it is just a case of not giving a shock to the markets. 

    Isabelle Toledano-Koutsouris of UBS says the actions of the European Central Bank will be key in determining how and when liquidity returns to the corporate bond market.
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  • Nissan Motor has cut its first-half net profit forecast to 282 billion yen from an original guidance of 326 billion yen. First-half operating profit fell 14 percent

    The Japanese automaker maintained its full-year dividend plan, and raised its second quarter dividend to 24 yen from 21 yen.  

    Shares in Nissan are down nearly 20 percent since the start of the year:

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  • A magnitude 5 earthquake has struck near Cushing in Oklahoma, damaging buildings and forcing residents to evacuate. The town is a key U.S. oil storage hub, however no immediate damages of oil facilities were reported. 

    The town of Cushing is known for being at the intersection of oil pipelines but no immediate damages were reported on its oil storage facilities. 

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  • A U.S. regulator says it has found software in some Audi vehicles that lowered their carbon dioxide emissions if it detected they were being used under test conditions.

    This reported by German paper Bild am Sonntag.

    The California Air Resources Board (CARB) discovered the software in an automatic transmission Audi last summer, the German weekly newspaper said, without citing any sources.

    Our reporter covering all things European cars, Nancy Hungerford:

    One it raises allegations of an entirely new form of cheating and the other factor is it raises eyebrows because it relates to carbon emissions, which is a hot topic in Europe.

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  • European stocks are now open for trading with the Stoxx Europe 600 opening 0.78 percent higher.
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  • Major European stocks rally at open, all higher more than 1 percent. Lot of optimism in the market after the FBI said new emails it probed did not change its July conclusion that there were no grounds for prosecuting Hillary Clinton:


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  • Let's take a look at the best and the worst performing sectors this morning. There is a sea of green across the board with basic resources leading the list, up by 2.2 percent. 

    Meanwhile, chemicals are at the bottom, up by nearly 1 percent.

     
     

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  • Time to look at the best and the worst performing stocks this morning. Shares in PostNL lead the Stoxx Europe 600 this morning, up 6.5 percent after Belgium's BPost makes renewed bid offer. The company also beat Q3 profit expectations. 

    Meanwhile, SNAM, an Italian natural gas infrastructure company is at the bottom of the list, down 17 percent:

     
     

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  • HSBC has posted a 86 percent drop in pretax profit in the third quarter. The weaker than expected result was mainly due to a one-off 1-point-7 billion dollar charge from the sale of its Brazilian business. HSBC's earnings were also hit by adverse foreign exchange moves. 

    Xavier Van Hove, Investment Director at GAM says HSBC has 3 great businesses, but they don't work together. 

    The U.K. one, the Hong Kong Retail one and the Asian investment bank. Put together you have a very average bank. So you need to break it up.

    He says if there was a leadership prepared to look at the bank who would look at splitting up the bank then his organisation might consider buying the stock.


    Van Hove: European banks are worth a look 

    Van Hove says on the wider sector he sees opportunity, arguing that  most European banks are at the end of their restructuring plans with much improved capital ratios. 
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  • Financials rally this morning as Stoxx Europe 600 banks is up more than 2 percent. The index, however, is down more than 18 percent since the start of the day:

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  • Ryanair has upped its long term passenger growth forecast by 10 percent, after posting a second quarter profit slightly ahead of forecasts. The airline also announced a 550 million euro share-buyback. 

    However, Europe's largest carrier by passengers continues to warn about the risks of Brexit and weaker sterling. CEO Michael O'Leary gave us a view on the headwinds AND the tailwinds that are likely to impact the airline sector in next few months.

    Shares in Ryanair are up 5 percent in this morning's trade:

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  • I think if we see rates higher in a year's time, then I think that's a scenario where risk markets have done better. 

    Andrew Sheets, Chief Cross-Asset Strategist at Morgan Stanley says if interest rates rise, it should not be a negative for riskier equity assets.

    Sheets: Rates going up should lift risk sentiment 

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  • Banks are now leading the Stoxx Europe 600 index. Let's take a look at major bank stocks across Europe that are trading in positive territory:

     
     

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  • The Monte dei Paschi foundation has put forward businessman Alessandro Falciai to replace Massimo Tononi as the bank's chairman. Falciai, a Monte dei Paschi board member and head of its nomination committee is also a significant investor in the bank with a stake of just below 2 percent. Shareholders are now due to vote on the nomination.

    Shares in BMPS are up 16 percent this morning:


    We speak to CNBC's Claudi Pensotti who is in Milan about what's driving BMPS shares:

    The shares are up on a number of reasons, one is on expectation that  Alessandro Falciai  will take over as chairman of the BMPS. The market seems to be thinking that it is a bridge till we know what is going to happen with BMPS. 

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  • Investment Director at GAM, Xavier Van Hove, says luxury firm Yoox Net-a-Porter and beauty specialist Coty are firms that on a price-to-sales ratio show margin and growth promise.

    Click or tap on the arrows for the guest's stock disclosure details.

     
     

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  • And in case you missed it, here is how the market open panned out with Julia.
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  • Here are your top headlines at this hour:

    • The all-clear for Hillary Clinton delivers a big boost to equity markets. Stocks in Europe and US futures trade sharply higher after the FBI says it will not prosecute the presidential candidate, less than 24 hours before the polls open. 
    • Banking stocks lead the way, helping investors shrug off a 86 percent drop in pretax profit from HSBC.
    • Shares in Ryanair flying high after the airline boosts its growth forecasts. But CEO Michael O'Leary warns a win for Donald Trump could cause havoc.
    • Shares in PostNL also delivering big gains. Belgian postal company BPost raises its offer for the Dutch rival sending the stock to a five-year high. 
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  • The German prosecutor's probe into Volkswagen's market manipulation has now expanded to include Hans Dieter Pötsch, chairman of the supervisory board, who was CFO when the diesel emissions scandal broke in September 2015. The investigation was already looking into former CEO Martin Winterkorn and VW brand head Herbert Diess. 

    Shares in Volkswagen are trying to hold on to gains this morning:

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  • U.K. house prices rose 1.4 percent month-on-month in October according to data collected by Halifax.

    A much more modest 0.2 percent gain had been predicted.

    On a yearly basis the three months to October witness a 5.2 percent rise.
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  • Meanwhile, sterling is down nearly 1 percent against the resurgent dollar:

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  • A final poll from NBC and the Wall Street Journal shows Clinton holding a 4 point lead over Trump. 

    Dow futures are up over 200 points on the news the FBI has completed its review of the newly discovered emails from Hillary Clinton's server - and has not found any wrongdoing. 

    James Boys, Senior US Policy Expert & Associate Professor of International Political Studies at Richmond University says Trump may have too steep a mountain to climb to win the presidency.

    He's not bringing in African Americans, he's not bringing in Hispanics, He's not doing exactly what the Republican party said they needed to do 4 years ago.


    Boys says the oft-quoted parallel between Brexit and the U.S. general election is reductive and simple. He says the number of polls in the United States far outweigh those conducted in Europe.

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