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.

    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.
    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.
    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.
    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.
    The euro has extended losses against the U.S. dollar today, hitting a session low of $1.1512 after Tuesday's more than 1-year high of $1.1583.
    Less than an hour until the close of European markets and the Stoxx 600 is doing well, up 0.7 percent.
    All sectors of the index are in the green. the best performing is the tech sector. Basic resources are also performing well.
    Wealth manager and private bank Coutts published its mid-year investment outlook today. The wealth manager said it remained positive on equities and alternatives.
    The normalising global economic environment (with growth picking up and interest rates rising) has been positive for risk assets and has pushed equity and credit valuations up. We believe this benign environment will continue for a while but are watching closely for signs of slowdown.
    Here's a break-down of what it sees for markets. 
    Equities: Coutts believes the reflationary environment is good for riskier assets like equities, especially financials and IT. Coutts expects the trend, which started in the U.S., to persist in the medium term and become more prominent in Europe.
    Bonds: Coutts is negative on government bonds. It prefers credit to government bonds, especially high yield and emerging market debt.
    Alternatives: Coutts says alternatives strategies – like trend-following strategies – have had a lower correlation to equities than government bonds. So, when equities fall they perform better than bonds, offering superior protection against equity corrections.
    Morgan Stanley announces it has chosen Frankfurt as the site of its post-Brexit EU hub. That's according to Press Association citing sources.
    Morgan Stanley is the latest bank to announce plans to reduce operation in London, or leave the city altogether, after Brexit.
    Shares in Morgan Stanley are doing well today, up more than 2 percent in U.S. markets, after its Q2 results.
    President Trump is attending the first meeting of the election integrity commission. 
    Trump says the commission is there to prevent illegal voting and stop voter suppression. He says 30 states have already shared information with the commission.
    President Trump says many people told him about voter irregularities and inconsistencies during the election.
    He says it is a bipartisan, American issue. He says if we want to make America great again, we must protect the voting process and individual voters.
    U.S. markets remain higher in today's session. The Nasdaq is up 0.56 percent. The tech-focused index is on its longest winning streak since 2015 and is chasing a 9th consecutive positive close.
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