Copy of World Markets Live - July 19 - CNBC Live Events
×

CNBC Live Events

Copy of World Markets Live - July 19

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

  •  
    Good Morning and welcome to our Live blog. Our headlines are as follows:
     
    • Back to the drawing board. Republicans scramble for a healthcare win, after efforts to replace Obamacare fail. President Trump vows to fight on for the rest of his agenda.
     
    • Goldman's a drag. Shares fall, taking the Dow with it, as the big bank reports a 40 percent slump in bond and currency trading.
     
    • McCormick buys Reckitt Benckiser's food business for 4-point-2 billion dollars, adding French's mustard and Frank's hot sauce to the company spice rack.
     
    • IBM shares fall, as the tech group's revenue numbers disappoint, dropping for the 21st quarter in a row.
  • AkzoNobel CEO Ton Büchner has stepped down with immediate effect, More as we get it.
     
     
  • A mixed close for U.S. indices in yesterday's session. The Dow dragged lower by Goldman Sachs which failed to impress investors yesterday as  the company's strategy remained murky during an investor call.
     
     
    In Asia we are seeing some strength in the markets toward the end of the session, particularly in China as economic data pushes commodities higher.
     
    Asian markets are open and trading higher.
     
    The strength in Asia is helping push opening calls for European markets upwards.
  • The United States and China are meeting in Washington for first official trade talks. Craig Botham, Emerging Market Economist at Schroders is on set and says China is likely to offer some minor concessions to help Trump 'save face' but any major deals are unlikely.
     
    He adds that on the thorny issue of steel exports, it is worth bearing in mind it s only worth 2 percent of U.S. GDP and it is strange that there is so much focus on it.
     
    Botham says the U.S. may attempt to slap a levy on only Chinese steel, which could be tricky to achieve.
     
     
    Craig Botham says the second half of the year should see a slight slowing of current Chinese growth levels.
     
  • Bain Capital and Cinven have improved their offer for European generic drugmaker Stada to 66.25 euros per share. That improved offer represents a tiny premium of 25 cents per share.
  • McCormick and Co will buy Reckitt Benckiser's food business in a deal worth $4.2 billion dollars. Brands include French's mustard and Frank's hot sauce.
     
    The American seasonings maker hopes the move will help it achieve "meaningful accretion" to margins and adjusted earnings per share. McCormick added that 2017 pro forma net sales were expected to amount to 5 billion dollars.
     
    Reckitt says it will use the funds to pay down debt on its wider business. 
     
    McCormick and Co will be the new owner of Frank's hot sauce.
     
    Reckitt Benckiser has a forward price over earnings ratio of 21 times which is typical for the sector.
  • The CEO of AkzoNobel Ton Buechner has stepped down with immediate effect due to health reasons. Buechner has led the Dutch paint maker since 2012 and is being replaced by Thierry Vanlancker, who previously ran the company's speciality chemicals division.
     
     
    The group has recently faced immense pressure from activist shareholder Elliott to sell itself to US rival PPG in a $27 billion dollar deal.
  • Second quarter figures for Electrolux have hit the wires.

    Operating income increased to 1.9 Swedish Crowns while sales came in as forecast at 31.5 billion Swedish crowns.

    The firm has raised it s North American outlook to sit between 3 and 4 percent in 2017 while confirming its previous forecast for European growth in 2017 at around 1 percent.

    We will hear more about those results as CNBC gets the first post numbers interview with Jonas Samuelson, CEO of Electrolux, at 10:05 CET.


  • For me, Republicans have very soon got to make a decision. Do they run on Trump's agenda for the mid-terms or do they not?  
    Steve adds that the failure of Trump to get key ideas through Congress is hampering Janet Yellen at the Federal Reserve who wants to rely more on fiscal efforts from Washington.
     
    U.S. President Donald Trump sits in a fire truck while participating in a Made in America event.
     
  • Disappointing bank earnings dragged the Dow lower, as weaker fixed income trading weighed on both Bank of America and Goldman Sachs' second quarter numbers.

    Wilfred Frost has more:
    by david.reid

    Back in Europe, a solid boost in net interest and commission income helped Swedbank post stronger than expected second quarter operating profit. 

    The Swedish lender noted that customer FX trading was particularly high, while corporate lending during the period fell slightly, due to repayments. 

    Birgitte Bonnesen, Swedbank CEO joins the team down the line from Stockholm.


    She says the bank is managing to increase revenue from mortgages, even as the central bank imposes negative rates. 

    Bonnesen says increased volume is the key to maintaining income, but the bank has also been very selective on who it lends to.

    We look for positive cash flows, we don't like negative cash flows over many years.

    On expensive housing in Sweden, Bonnesemn says "prices are crazy" but there is not really evidence that it is a bubble situation.

    There is a supply problem. Nothing is being built for ordinary people.


  • The dollar index is trading at lows not seen since last September.


    Bob Parker is on set as guest host again but this time in his relatively new role as Investment Committee Member of Quilvest Wealth Management.

    Parker tells Steve and Gemma that in the United States growth is decelerating and that the IMF growth forecast for 2017 is around 2.1 percent.

    He says that doesn't mean that everyone is going to sell dollars in favor of euros but the "recent period of euro weakness looks to have passed".

    Parker: ECB should remove QE life support 

    For Europe, Parker said the current argument that growth in the euro zone is improving and should reach 1.5 to 2 percent growth.

    He also said there is little evidence that the ECB should continue to support Europe with stimulus.
  • Top Chinese and US business leaders are urging their Governments to quickly solve bilateral trade issues. 

    This appeal comes during the US-China business leaders summit, co-hosted by Alibaba Chairman Jack Ma and Blackstone Chief Executive Stephen Schwarzman. 

    US Commerce Secretary Wilbur Ross responded by saying that the private sector is well placed to resolve "serious imbalances" in trade between the two countries.

    The Trump administration is gearing up for high-stakes trade talks with China but recent media in China has had a slight dig at Trump's campaign pledge to "make America Great".


    On set, Bob Parker says he expects a statement on steel import tariffs to the United States within the next week.

    Parker says if a number of American firms producing in China do return to manufacture within U.S. borders then you can expect to see cost pressures.

    Parker adds that the Chinese are uptight about investing in American companies while US firms want a reduction in barriers to entry in trading in the Chinese domestic market.

    PArker notes that the Chinese trade surplus with America is about $350 billion per year and a hard landing in China looks unlikely.
  • European bourses are expected to open higher this morning, paring losses seen Tuesday after the White House saw the latest setback in its efforts to drive ahead with health-care reforms.

    The FTSE is seen 21 points higher at 7,349; the German DAX is expected to open up 21 points higher at 12,447; and the French CAC is seen up by 21 points at 5,194.
     
     
     
     
  • Swedish telecom firm Tele2 has upgraded its full year guidance, after posting second quarter earnings which beat analyst expectations. The company is now targeting 2017 EBITDA of between 6.2 and 6.5 billion Swedish crowns.

    Tele2 CEO Allison Kirkby joins CNBC live by phone from Stockholm.


    The mobile and data provider operates in 9 countries and lays claim to 14 million customers.

    Kirby says to maintain margins in a competitive sector, customers need to be given a great experience and must be allowed some flexibility with their contracts.

    The great thing is, customers love to be connected.

    Kirby says regulators have made it tricky for telco firms and they need to offer more certainty on spectrum pricing.


  • European markets are now open for trading. The pan-European Stoxx 600 has opened 0.46 percent higher:
     
     
  • Major European indexes have opened slightly higher this morning as investors digest a number of corporate earnings this week:
     
     
  • The CEO of AkzoNobel Ton Buechner has stepped down with immediate effect due to health reasons. Buechner has led the Dutch paint maker since 2012 and is being replaced by Thierry Vanlancker, who previously ran the company's speciality chemicals division.

    The group has recently faced immense pressure from activist shareholder Elliott to sell itself to US rival PPG in a 27 billion dollar deal.
     
     
  • Electrolux has upgraded its North American market outlook, after reporting a stronger than expected rise in second quarter earnings. The Swedish appliance maker upped its North American growth target to between 3 and 4 percent, citing strengthening demand and a favourable macro environment. Although Europe remained solid, Electrolux warned that the appliance market was weak in the UK. 
     
     
  • Volvo has reported better than expected core earnings in the second quarter, bolstered by a 22 percent increase in truck orders. The Swedish heavy vehicle maker also raised its full-year guidance for the North American market, while expecting stable demand in Europe. 
     
     
  • Second quarter sales at semiconductor equipment maker ASML rose to more than 2 billion euros, topping analyst expectations as well as ASML's own forecasts. The Dutch firm said it was on track to report sales growth of about 25 percent for the year.
     
     
  • McCormick and Co will buy Reckitt Benckiser's food business in a deal worth 4.2 billion dollars. Brands include French's mustard and Frank's hot sauce. The American seasonings maker hopes the move will help it achieve "meaningful accretion" to margins and adjusted earnings per share. McCormick added that 2017 pro forma net sales were expected to amount to 5 billion dollars. Reckitt says it will use the funds to pay down debt. 
     
     
     
  • Let's take a look at the best and the worst performing stocks in Europe this morning:
     
  • David Moss, Head of European Equities at BMO Asset Management is on set to discuss market strategy. Bob Parker also still on set.

    Moss says universally across Europe there is good news and France, Spain as well as Italy are all showing growth.

    Moss: Europe is beginning to turn 

    He says it may be time to reallocate away from export sectors to domestic focused stocks within Europe as the euro strengthens.

    Moss caveats that by pointing out it is not easy to stock pick strong domestic European companies.


    Moss says European banks have a tail wind for the first time in a very long time:


    You have had a multi year scenario of building more capital, ever lower interest rates and weak loan growth. All those things are turning. Not very much but we have seen better loan growth and better NPL ratios.

  • Analysts at UBS have downgraded Commerzbank, cutting the German bank's stock rating from buy to neutral. The lender last month warned that restructuring costs would push it to a loss for the second quarter. Commerzbank is in the middle of a major overhaul, which includes the reduction of its workforce by more than seven thousand jobs.
     
    The severance agreement is expected to cost 810 million euros, which will be booked in Q2. 
     
     
  • David Moss, Head of European Equities at BMO Asset Management is a personal holder of stocks in food delivery service company, Takeaway.com.

    He argues that the firm is a first mover in the shake up of the takeaway model. 

    What we like are disrupters. These companies are changing they way that people order food and offering them various cuisines and price points.

    He says follow up firms aren't going to find it easy to sign up restaurants and that the employment model is remaining exactly as it ever was.

    Margins don't need to improve, it is about finding new markets.


    Source:Takeaway.com

  • Here are your top stories at this hour:
     
    • Cooking up a treat! Electrolux shares soar, as strong North American demand boosts the appliance maker's earnings. 
    • Volvo shares slip to a two-month low, as weak margins weigh on results. This despite the truckmaker raising its North American outlook, after posting slightly better than expected second quarter core earnings.
    • Pass the mustard. McCormick buys Reckitt Benckiser's food business for 4.2 billion dollars, adding French's mustard and Frank's hot sauce to the company spice rack.
    • The CEO of AkzoNobel steps down, citing health reasons, as the Dutch chemicals company continues to battle activist investor Elliott Management's attempts to oust its chairman. 
       
  • A little over 30 minutes since the start of the European trading session and stocks continue to trade slightly higher, except for FTSE100 that is trading around the flat line:
     
     
  • ECB Governing Council member Francois Villeroy de Galhau says the risk of deflation has been removed from the euro zone. That's according to Reuters.
     
    He says the region still needs an accommodative monetary policy, but we are adapting its intensity depending on economic situation and inflation. 
  • Some British Airways cabin crew are set to begin a fresh two-week strike over BA's reluctance to return full privileges to staff who took out industrial action earlier in the year.

    BA has warned the cabin crew to return to work, or face further consequences.  


    On set John Strickland, Director of  JLS Consulting says legacy carriers have learned their lesson from losing to short haul business and they won't allow the same thing to happen on long haul routes.

    He says long haul is a brutal environment for new entrants and there is no long haul carrier that is making a profit.

    On the BA outage which created worldwide delays for several days, Strickland says a report is soon due which all airlines will be keen to lay their eyes on.
  • Head of French armed forces Pierre De Villiers has resigned. That's according to Reuters citing a statement from his office. 
     
    FRA: Franco-German Cabinet Meeting At Elysee Palace : News Photo
     
    Meanwhile, Dow Jones is reporting that the resignation comes after clash with President Macron on Budget.
  • Let it fail.
     
    That's was U.S. President Donald Trump's message about Obamacare as he laid the blame for the collapse of a new healthcare bill at the feet of the Democrats. He said he was disappointed with how the attempts to repeal and replace the Affordable Care Act had played out.
     
    However, President Trump added that he was going to move on with his other legislative initiatives such as infrastructure.
     
     
    When we finally get a chance to repeal and replace, they don't take advantage of it. So, that's disappointing. 
     
    - President Trump
  • Here are your top news stories at this hour:
     
    • Cooking up a treat! Electrolux shares soar to record highs, as strong North American demand boosts the appliance maker's earnings. We'll speak to CEO, Jonas Samuelson, in 10 minutes time. 
    • Volvo shares slip to a two-month low, as weak margins weigh on results. This despite the truckmaker raising its North American outlook. We'll also speak to Volvo CEO Martin Lundstedt at 10:45 CET. 
    • Pass the mustard. McCormick buys Reckitt Benckiser's food business for 4.2 billion dollars, adding French's mustard and Frank's hot sauce to the company spice rack.
    • The CEO of AkzoNobel steps down, citing health reasons, as the Dutch chemicals company continues to battle activist investor Elliott Management's attempts to oust its chairman. 
       
  • The European Central Bank (ECB) is widely expected to hold interest rates steady on Thursday with many market watchers expecting the bank to announce in September plans to reduce its bond-buying program.

    ECB President Mario Draghi's speech in Sintra was interpreted by many economists as a sign that the central bank was more optimistic about the economy and could start "tapering" earlier than expected. Since his speech in June, the ECB has tried to calm down those expectations in order to prevent an unwanted tightening of monetary conditions.
     

    ECB's Draghi to tread softly as markets anticipate the start of 'tapering' in September

    CNBCThe European Central Bank is widely expected to hold interest rates steady on Thursday with many market watchers expecting the bank to announce in September plans to reduce its bond buying program.
  • Electrolux shares have hit record highs after the company upgraded its North American market outlook. This as it reported a stronger than expected rise in second quarter earnings. The Swedish appliance maker upped its North American growth target to between 3 and 4 percent, citing strengthening demand and a favourable macro environment. Although Europe remained solid, Electrolux warned that the appliance market was weak in the UK. 
     
    Jonas Samuelson, CEO, Electrolux joins us live to discuss the numbers:
    We do see a good construction environment. People moving and trading at them and buying appliances. That is very supportive for demand. Our focus is very much on operational efficiency.
     
    GE Appliances Sold To Electrolux Of Sweden For 3.3 Billion : News Photo
     
    We have a strong manufacturing footprint and strengthening further in North America. We are very much in favour of free trade and we do have a global supply chain but specifically in North America we have a competitive manufacturing base.
  • Let's check on Electrolux shares that are trading more than 4 percent higher:
     
     
  • The US is imposing new sanctions on Iran for its ballistic missile program. It's a way for the Trump administration to pressure Iran, but without scrapping the nuclear deal. The American State Department says Iranian activity across the Middle East is undermining regional security.
     

    US targets Iran with new economic sanctions over its ballistic missile program

    CNBCThe Trump administration on Tuesday unveiled new economic sanctions against Iran over its ballistic missile program and for contributing to regional tensions.
  • Volvo shares have extended their losses, touching a two-month low after second quarter truck margins came in 10 percent under expectations.
     
    Martin Lundstedt, CEO, Volvo joins us live to discuss more:
     
    I think one of the reactions is little less margins on the truck side in relation to expectations. The main explanation for that is a stretched supply chain at the end of the quarter. Generally it is a solid report, we are increasing margins. 
     
     
     
  • Britain will probably need to set up fewer than 10 new regulators after Brexit. That's according to Reuters citing a government source.
  • The current weakness in the U.S. dollar may be short lived, as a pick-up in inflation and expected rate hikes by the Federal Reserve will support the greenback in the coming months, JPMorgan Asset Management said Wednesday.

    We're thinking that the dollar will actually rebound in the second half, and this is mainly as the markets re-price in interest rates hike. We're of the view that inflation will actually be picking up in the U.S. and currently, markets have only priced in one rate hike now till end-2018," Jasslyn Yeo, global market strategist at JPMorgan Asset Management, told CNBC's "Street Signs.

    The US dollar will rebound in the second half of 2017, says JPMorgan

    CNBCThe greenback will receive support from a pick up in inflation and markets pricing in more interest rate hikes, JPMorgan Asset Management said Wednesday.
  • U.S. stock index futures pointed to a relatively flat open on Wednesday, as investors brace themselves for another slew of corporate earnings reports.

    In earnings news, Morgan Stanley, US Bancorp, M&T Bank, American Express, Qualcomm and T-Mobile US are some of the major names set to report. 
     
     
  • Oil prices trad higher, supported by a strong gasoline market, but rising output from OPEC producers revived concerns about a fuel supply overhang.
     
     
  • Samsung began rolling out its smart assistant Bixby — which is a rival to Apple's Siri — for Galaxy S8 and S8+ users in the U.S. on Wednesday, after a delay for the much-hyped feature.

    The new software is for owners of Samsung's latest flagship devices in the U.S. and South Korea only, and they need to download an update to access the latest version of Bixby. The voice assistant is only available in Korean and U.S. English at the moment, with Samsung promising additional languages and devices in the "near future."
     

    Samsung Bixby assistant finally comes to Galaxy S8 users in the US

    CNBCGalaxy S8 users need to download a software update to access the U.S. English language version of Bixby.
  • Let's take a look at the euro that is trading slightly lower against the dollar as investors eye the ECB rate decision on Thursday:
     
     
Powered by ScribbleLive Content Marketing Software Platform