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

  • Macron appoints new French armed forces chief, Francois Lecointre, military source says current chief announced resignation in budget cuts row. That's according to Reuters.
  • Morgan Stanley has just announced its Q2 results:
     
  • The U.S. mortgage market index increased 6.3 percent to 416.7 for the week ending July 14, according to the Mortgage Bankers Association.
     
    The purchase index increased 1.1 percent to 245.5, and the refinancing index rose 13 percent to 1,367.8
     
    The average U.S. 30-year mortgage rate was unchanged at 4.22 percent.
  • M&T Bank reported Q2 earning per share of $2.35 and net profit of $381.1 million. The bank's net interest margin was 3.45 percent 
  • U.S. Bancorp reports its Q2 earnings as well this morning. The bank earnings beat estimates, with earnings per share of 85 cents versus a forecast of 84 cents.
     
    Revenue was $5.49 billion and net profit was $1.5 billion. Net interest income was $3.02 billion. 
  • Morgan Stanley reported an earnings beat today. Shares in the bank are up 2.5 percent in premarket trade.
     
     
  • U.K. Prime Minister Theresa May is speaking in parliament today. This is the last session of Prime Minister's Questions before the summer recess.
     
     
     
     
  • Several U.S. banks have reported Q2 earnings ahead of the market open.
     
    Morgan Stanley Q2 earnings per share was $0.87 versus $0.76 estimate, and revenue was $9.503 billion versus $9.094 billion estimates. Shares are up more than 3 percent in premarket trade.
     
    U.S. Bancorp beat estimates, with earnings per share of 85 cents versus a forecast of 84 cents.
     
    Also, M&T Bank reported Q2 earning per share of $2.35 against an estimate of $2.27.
  • Germany's foreign ministry spokesman says foreign minister Sigmar Gabriel has summoned a Turkish ambassador to protest against the arrest of a German human rights activist. 
     
    Gabriel demands the activist is released immediately. The spokesman says terrorism accusation raised by Turkey against the detained German citizen are absurd, according to Reuters.
  • More U.S. earnings are now released.
     
    Northern Trust announces Q2 net profit of $267.9 million, on revenue of $1.32 billion, with earnings per share of $1.12. 
     
    Union Bankshares Corp reports Q2 net profit of $18 million and earnings per share of 41 cents.
  • Prime Minister Theresa May is answering questions to members of parliament ahead of the summer recess.
     
    She says the issue of "rip-off" debit and credit card charges is important. She estimates these charges totaled in 2010 as £473. She says these charges are to be stopped, in order to help U.K. consumers.
     
     
  • Cambell Soup has provided an update on growth for the fiscal year 2018.
     
    The company reaffirms its previous guidance for full-year 2017. It expects to reach around $310 million in annual cost savings by the end of the 2017 fiscal year. It expects to generate about $1.25 billion in cash flow from operations in the fiscal year 2017, with a gross margin of 38 percent.
     
    The company sees adjusted EBIT rising by 2 to 4 percent in 2017, with adjusted earnings per share between $3.04 and $3.09, up 3 to 5 percent.
  • The U.S. banking sector has exceed expectations,according to Kerim Derhalli, CEO and founder of invstr.
     
    Inflation may well have been subdued in the years and months since the lows of the crash, but the world’s largest economy is now benefiting from low unemployment rates. JP Morgan recording its highest ever quarterly earnings, as well as increased profits at Morgan Stanley, is testament to this growing confidence.
     
    Investors will now look for interest rates to ‘normalise’ and get closer to the three to four percentage point levels that we saw pre-crash and for the yield curve to steepen.
  • Prime Minister Theresa May says the government understands and accepts the importance of investing in infrastructure. She says the government recognises the importance of investment at the local level as well as the national rail, like the HS2 project.
  • Prime Minister's Questions has now come to an end. That was the last opportunity for members of parliament to directly address Theresa May before the Summer recess. The House of Commons will not return until 5 September.
  • Despite some strong earnings results today, U.S. markets are set for a mixed opening, according to future values.
     
    The Nasdaq is called 15 points higher and the S&P 500 called just 1 point up, following on from gains made in yesterday's session.
     
    The Dow is called nearly 5 points lower for today's session. This after the index dropped 0.25 percent by the close of yesterday's session.
     
     
  • French President Emmanuel Macron has appointed a new chief for the French armed forces, Francois Lecointre. That's according to Reuters citing a military source.
     
    Francois Lecointre, right, in 2013.
    The former chief, General Pierre de Villiers, resigned abruptly today after clashing with Macron over cuts to the defence budget.
     
    A spokesman for the French government says Macron has reaffirmed a target for the defence budget to rise to 2 percent of GDP in 2025.
  • W W Grainger reports Q2 net income of $97.9 million, on sales of $2.62 billion. The sales result was below the IBES estimate of $2.63 billion.
     
    The adjusted earnings per share was $2.74, beating the estimate of $2.65. The company says Q2 was in line with expectations. 
  • The U.K.'s GlaxoSmithKline announces it is proposing to close its manufacturing site in Slough, outsource some manufacturing at its Worthing site and is exploring options to divest some other, smaller non-core nutrition brands. This will result in a reduction of around 320 permanent jobs over the next 4 years at its Worthing and Slough sites.
     
    The company plans to invest £130 million at several other sites between now and 2020 to support expansion of manufacturing for respiratory and HIV medicines.
     
    The company adds it intends to sell its Horlicks brand in the U.K.
  • GlaxoSmithKline shares are slightly higher on news it intends to sell some of its brand and outsource some manufacturing. It also intends to cut 320 permanent jobs over the next 4 years.
     
     
  • James and Lachlan Murdoch have written to the U.K. government, urging it not to delay its decision on the proposed acquisition of Sky by 21st century Fox.
     
    The brothers, sons of media mogul Rupert Murdoch, say any delay in the decision will lead to a deferral of investment and damage the wider climate for inward investment to the U.K.
     
    They urge the media secretary not to allow political considerations to cloud the regulatory process.
  • Coming up in less than 14 minutes, we'll have the U.S. housing starts and building permits data for June.
     
    Housing starts is seen 6.4 percent higher, while building permits are seen 2.6 percent higher.
  • Morgan Stanley's CFO Jonathan Pruzan tells CNBC that the company did see an uptick at the end of the quarter in relation to some central bank activity and statements.
     
    The company raised its quarterly dividend by 25 percent.
  • Rep. Diane Black for Tennessee and chair of House Budget Committee says to expects tax reform from the administration by the end of the year.
     
    She says any changes have to be deficit neutral.
     
    On the topic of the failure of the health care bill, she says it needs to be done. She says the affordable care act is falling apart on its own. She says she wants to see people have the opportunity to buy something they can afford and is what they want, not what Washington thinks they need.
     
    She says her party has made a promise to the American people and needs to get the job done.
     
     
  • U.S. housing starts for June rose 8.3 percent to 1.215 million versus estimates of 5.5 percent.
     
    Housing permits rose 7.4 percent in June versus a fall of 4.9 percent in May; permits totalled 1.254 million units, versus expectations of 1.2 million.
  • President Trump has invited all GOP senators for lunch at the White House today to talk health care and "other issues," according to a White House spokesman. Trump took to Twitter this morning to confirm the lunch, saying Republicans "must keep their promise" on health care.
  • U.S. Treasury yields hold at higher levels after the stronger-than-expected increase in U.S. housing starts and permits.
     
     
  • Senator Heidi Heitkamp from North Dakota, says there is hope for the health care bill. She says the dam is breaking and ideas from several senators and governors are being shared.
     
    She calls on the "political hatchet" to be buried and for the two sides to work together.
     
    Heidi Heitkamp
     
     
  • Senator Heidi Heitkamp from North Dakota says the Democratic party has a lot of leaders right now. She says there is a void at the moment where a prospective candidate should be. 
     
    She says the Democrats have to discuss health care fixes and tax reform. She says good policies is good politics. 
     
    She says she will evaluate whatever policy comes forward on how it will affect her state and will view it fairly.
  • Senator Heidi Heitkamp from North Dakota says there is a deal to be made on tax reform or infrastructure spending and the two sides need to work on a solution.
  • Among the early movers, Qualcomm share are down 0.6 percent in premarket trade 
     
    The company is reporting its latest earnings after the bell this afternoon. Qualcomm has been in dispute with Apple for several months. News today reports that Qualcomm faces fresh antitrust allegations from a group of four companies that assemble Apple products.
     
     
     
  • Morgan Stanley CFO Jon Pruzan says the company results reaffirm that is strategy is working, according to Reuters
     
    This quarter represented an important test of our model.
     
    After years of headwinds for the industry, we are finally starting to see some tailwinds that can be promising for our business.
     
    Pruzan added that movements in its commodities business are not noticeable because its footprint is small.
     
    Shares in Morgan Stanley are trading more than 3 percent higher in premarket trade.
     
     
  • Russian retail sales grew 1.2 percent year on year in June versus 0.7 percent the month before.
     
    June PPI increased 2.9 percent year on year, but fell 0.3 percent month on month.
     
    Russia's jobless rate in June was 5.1 percent, down from 5.2 percent in May. Real wages grew 2.9 percent year on year versus 2.8 percent the month before.
     
    Weekly consumer inflation grew 0.1 percent in the week to July 17, according to the country's stats service.
  • IBM shares are extending losses in premarket trade. The shares are down almost 3 percent after it posted disappointing results on Tuesday. The company reported its 21st consecutive decline in revenue. This will weigh on the Dow.
     
     
  • Fred's Pharmacy appoints Jason Jenne as CFO. Jenne succeeds Rick Hans, who will remain in an advisory capacity until August 18. Fred's says Jenne most recentl served as president and CEO of True Temper Sports.
  • U.S. housing starts rose to 1.215 million in June from 1.12 million in May. This was well above the 1.16 million expected.
     
    Jim O'Sullivan, chief U.S. economist at High Frequency Economics, says this result, along with the rise in permits, represented a strong rebound. 
     
    Through the volatility, starts have continued to move up this year, led by single-family activity.  Total starts have averaged a 1.201 million rate so far this year, up from an 1.177 million average last year.  Permits have averaged a 1.238 million rate so far this year, up from 1.207 million last year.
     
    Ian Shepherdson, chief economist at Pantheon Macroeconomics, says a rebound from May's weak number was to be expected.
     
    The May numbers always looked too weak, so a decent rebound in June was in the cards.In the starts data, single-family rose 50K,  with multi-family up 43K; for permits, single-family rose 34K,  with multi-family up 54K, a 13.9% leap, but these data are very volatile. The trend in single-family permits has dipped this year, having previously overshot the pace implied by the level  of new home sales.
     
    We expect sales to rise sharply over the summer, so fall construction activity should pick up, but the nervousness apparent in recent NAHB surveys, triggered partly by soaring materials costs, makes us hesitate before forecasting a sustained increase in starts and permits.
  • U.S. markets are now open. The major stock indexes are moving higher at the start of Wednesday trade.
     
     
  • Morgan Stanley shares jump more than 3 percent at the start of trade following its results, as the S&P 500 and Nasdaq hit fresh all-time highs.
     
     
  • It's a strong start to the U.S. trading day, with 3 advancers for every faller.
     
    The Dow is performing less well than the other two indexes, but is positive.
     
    At the bottom of the Dow is IBM. Shares in the company hit a year low of $147.58 after its Q2 revenue disappointed Wall Street.
     
  • The S&P has posted a record intra-day high. Scripps and Discovery Communications are near the top of the index on reports they are in talks to combine.
     
    Morgan Stanley is also near the top after its Q2 earnings beat.
     
    Northern Trust is at the bottom of the table after its earnings of $1.12 per share missed forecasts of $1.23.
     
  • Facebook shares have hit a new record high of $164.36 in today's session. This after reports it plans to launch a subscription-based news product, which will reportedly allow publishers to create a paywall on Facebook's instant articles and guide users to a page to buy a digital subscription.
     
     
     
     
  • Oil prices are higher today, supported by a draw in U.S. gasoline stocks that balanced out a build in crude stocks, according to data from yesterday. 
     
     
    But where are prices headed over the short-to-mid term? Wealth manager Coutts published an investment outlook report predicting oil will trade in the $40 to $60 for the next year or more.
     
    Spencer Welch, director of oil markets & downstream energy at IHS Markit, told CNBC he expects oil to remain around $50 a barrel through to the end of 2018 and into 2019.
     
    He says there may be a small price rise in Q3 of 2017 due to a peak in annual demand, but the price will move lower on increased U.S. production and as the OPEC/non-OPEC production cuts unwind.
     
    What could push prices up? Not much! It would take a major geopolitical event which threatens a significant loss of supply, but there is so much oil  in storage and so much spare capacity it would be hard to sustain prices above $70/bbl for an extended period of time.
     
    What could push prices down? This is more likely if the OPEC/non-OPEC supply cut deal falls apart because of some members not complying with the cuts. Although the supply cut deal has been very effective it is more fragile than some people think.
     
    He says Nigeria and Libya, who are increasing production at the moment, may need to be brought into the OPEC production cut deal, but this won't be easy. Welch says Saudi Arabia will not bear the pain of cuts alone.
  •  
    The European Central Bank will tomorrow be making its latest policy announcements, followed by a question and answer session with ECB President Mario Draghi.
     
    The ECB is expected to keep interest rates on hold tomorrow. It is not expected to announce plans for reducing its bond-buying programme until September, according to CNBC's Annette Weisbach.
     
    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.
     
    You can read Annette's full ECB preview here.
     

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

    The 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.
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