World Markets Live - August 10 - CNBC Live Events

CNBC Live Events

World Markets Live - August 10

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

    North Korean state television has outlined that the country plans to launch 4 rockets 30 to 40 kilometers away from Guam. It says the strikes will take place in mid-August.
    Also, North Korea has hit back at threats of "fire and fury" from Donald Trump, branding his warning "a load of nonsense".
    Meanwhile, the Pentagon has prepared a detailed plan for a pre-emptive strike on North Korea's missile sites. Senior military officials tell NBC that arrangements are in place, should President Trump order such an attack.
    The comments came after markets closed in the U.S. but Asian trade has reacted with relatively little downside.
    North Korea also issued an update on plans for a missile strike near the Pacific territory of Guam, saying preparations should be ready in a matter of days.
    North Korean leader Kim Jong Un reacts during the long-range strategic ballistic rocket Hwasong-12 (Mars-12) test launch in this undated photo released by North Korea's Korean Central News Agency (KCNA) on May 15, 2017.
    Welcome to our markets and political news live blog. Here are your headlines: 
    • The war of words between the U.S. and North Korea escalates, with the rogue state labelling President Trump's rhetoric 'a load of nonsense', saying he only understands absolute force.
    • Volatility rises along with the political tension. Gold is having a strong week, and strength in the Swiss Franc creates fresh headaches for the SNB.
    • News of an FBI search of former Trump campaign Chairman Paul Manafort's home. It's the latest sign the probe into Russian election meddling is heating up.
    • Altice prepares to step into the race to buy Charter Communications, in what could be a 2-hundred billion dollar deal.
    The world and North Korea has learned that you don't necessarily take Donald Trump at his word. And that his statements, whether they are from the White house or Twitter or a golf course, don't really move the dial on international affairs anymore.
    Charles Hecker, Senior Partner at Control Risks is on set with presenters Amanda Drury and Steve Sedgwick.
    He says Donald Trump's comments surrounding "fire and fury" have not been helpful.
    Hecker also says turning up the volume on North Korea won't hurt Trump's attempts to keep investigations at home off the front pages.  
    He says Trump could be using tactics straight out of the playbook of Vladimir Putin.
    "Look, this is easy...."
    The Dow, S&P, and NASDAQ indices all saw their second negative session in a row last night. Small caps under performed, with the Russell 2000 falling nearly 1%, its worst day in a week.  
    Stocks actually perked up toward the end of the U.S. session as investors looked for a rare opportunity to buy on the dip.
    North Korea's latest comments came out after the market close.
    Looking forward, European stocks look set for a mixed open on Thursday morning as investors monitor new corporate earnings and geopolitical tensions surrounding North Korea.
    The FTSE 100 is seen off by 5 points at 7,452; the DAX 30 is expected to open lower by 4 points at 12,147 and the CAC 40 is set to open up by 2 points at 5,142.
    In corporate news, Gong Energy, KBC Group, Thyssenkrupp, Glencore and Prudential are due to report their latest earnings numbers.
    In terms of data, inflation numbers from Germany, France, Spain, and Italy are due throughout the morning. 
    Glencore has raised its full year guidance after reporting its first half earnings. The Anglo-Swiss miner increased its 2017 guidance by $100 million to $2.4 to 2.7 billion. 
    Glencore has said it wants to create "long-term value for shareholders underpinned by its tier 1 commodities".
    Meanwhile, adjusted EBITDA for the period came in at $6.74 billion as net debt fell. 
    Rainer Seele, CEO of Austrian energy firm OMV says he is very happy with his company's second quarter results.
    OMV saw cost cuts help the firm double its adjusted operating profit.
    Seele says OMV expects the average Brent oil price to be $52 per barrel with refining margins projected higher than 2016.
    Seele adds that OMV is in acquisition mode as the firm seeks new avenues of growth.
    A reminder of our headlines:
    • The war of words between the U.S. and North Korea escalates, with the rogue state labelling President Trump's rhetoric 'a load of nonsense', saying he only understands absolute force.
    • Pedal to the metal for Glencore! The miner hikes its 2017 forecast, as first half earnings soar.
    • News of an FBI search of former Trump campaign Chairman Paul Manafort's home. It's the latest sign the probe into Russian election meddling is heating up.
    • Altice prepares to step into the race to buy Charter Communications, in what could be a two hundred billion dollar deal.

    The guest host on set today is the Head of FX Strategy at Rabobank, Jane Foley.
    She kicks things off with a answer to Steve's question on what is the top winner of safe haven currencies?
    I would say if you look a just the paperwork it has got to be the Swiss Franc.
    You've got the current account surplus, a good system of government , legal stability and you have also got liquidity.
    Rabobank has identified the US dollar as the worst performing G10 currency in the year do far.
    Jane Foley of Rabobank says it is hard to precisely gauge the effect of Trump on dollar decline but the relationship is real.
    She says part of it is policy disappointment in the lack movement on U.S. tax reform.
    Foley does not that however that tax reform is much moire likely to gain cross party support than the repeal of Obamacare ever could.
    Dong Energy has beaten second quarter EBITDA estimates.
    The Danish energy company raised its full-year guidance, adding it will likely have excess investment capacity within the next two years. Dong also said further financial headroom will enable it to increase shareholder payments in "a disciplined manner."
    Henrik Poulsen, the CEO of DONG Energy is on the line from Copenhagen and says it is mostly the off shore woind sector that is expanding rapidly.
    He says growth will continue into the second half and even pick up. The first half underlying growth was 17 percent.
    Poulsen says renewable energy prices have dropped by as much as 50 percent in the last couple of years and are becoming very competitive.
    He says green energy systems can also be built for value effective prices and this will allow the continued expansion of renewable power production.
    The CEO of Swiss job recruiter Adecco says growth in July was "a good 6 percent." 
    CEO Alain Dehaze says he is more optimistic about the European economy now than three or four months ago and sees growth continuing, according to Reuters.
    He says declines in Britain are probably due to Brexit uncertainty as financial services in the country have held off recruitment. He sees a divergence between Britain and Europe.
    The toymaker Lego has appointed Niels B. Christiansen to replace Bali Padda as chief executive.
    Padda, who was Lego's first foreign CEO, only took the reins 8 months ago.
    French June industrial production falls 1.1 percent on the month, versus growth of 1.9 percent in May, according to INSEE.
    It was forecast to fall by 0.5 percent.
    Tensions in the Korean Peninsula are reportedly spurring demand for safe-haven trades. The US 10-year treasury yield fell to a 6-week low in Wednesday's session.
    However, an overnight 10-year US auction showed really poor demand for U.S. sovereign paper, suggesting perhaps a mixed picture. 
    But Greg Peters, Fixed Income Senior Investment Officer at PGIM Fixed Income says he's not overly focused on the auction and that there is still deep demand for U.S. bonds as tension over North Korea rises.
    Look at the yen, you know Japan is front and center of that conflict but investors are still flocking to it.
    I would bear in mind it is August and the market is quiet.
    Greg Peters of PGIM Fixed Income takes a question from Rabobank's FX expert Jane Foley.
    Greg Peters, fixed income senior investment officer at PGIM Fixed Income, says he thinks inflation peaked in February and the economy is in a state of disinflation.
    I think the CPI data in the U.S. is incredibly important. The question is will equity markets continue to dismiss that, which allows the Fed perversely to tighten. So I think the central banks are not fighting consumer inflation at this point, they’re fighting asset inflation.
    European markets are now open for trade.
    The pan-European index fell 0.73 percent in yesterday's session. Today, it is initially moving to the downside.
    Basic resources is the worst performing sector at the start of Thursday's trade. Travel & leisure is leading the market, but is up just 0.12 percent.
    Most of the major European markets are flat at the start of trade.
    The FTSE 100 is down 0.6 percent, but several stocks on the bluechip index are trading ex-dividend today which explains some of the move.
    These are the stocks moving markets this morning:
    • Glencore has raised full-year expectations in its first-half report. The miner increased its 2017 guidance by $100 million. It's now between $2.4 and $2.7 billion. Glencore has said it wants to create long-term value for shareholders underpinned by its tier 1 commodities. Adjusted ebitda for the period came in at $6.74 billion.
    • Dong Energy has beaten second quarter EBITDA estimates. The Danish energy company raised its full-year guidance, adding it will likely have excess investment capacity within the next two years. Dong also said further financial headroom will enable it to increase shareholder payments in "a disciplined manner."
    • OMV doubled its second quarter adjusted operating profit to 662 million euros. The result was driven by its move to lower cost production in countries like Russia. Speaking earlier, CEO Rainer Seele pointed out the uncertainty in the oil price as one of the main risks he sees for the year.
    • Thyssenkrupp has reported a fall in profits in its third quarter following the sale of a Brazilian steel mill. The German industrial conglomerate saw net profit for the period fall to 120 million euros, down 10 million euros from the previous year. Net profit also missed analyst estimates, though revenues came in above expectations.
    At the moment with a low inflation world we have low growth. With that environment we don't think central banks can be rushed to act. Equally we things earnings yields look pretty attractive and when compared to bunds or treasuries we think that can be the key driver of equities.
    - Ed Park, Investment Director at Brooks MacDonald thinks stocks still look attractive in the current environment.,
    Park thinks technology driving reform in sectors such as retail will help to increase margins.
    Ed Park is the Investment Director at Brooks MacDonald and is on set to discuss market strategy.
    Brooks doesn't see bubbles as such, except potentially in property and notes some likelihood of sovereign bond selling. 
    He also says there is a wave of capital hunting for yield that could store up issues for the future.
    Stocks in Europe have not yet reached 2015 peaks.
    Germany's Henkel has reported disappointing second quarter organic sales, with 2.2 percent growth. Earnings rose to 839 million euros, missing forecasts. Growth at its adhesives business slowed and its beauty care sector was flat.
    Shares are down almost 4 percent this morning
    Amec Foster Wheeler's revenues fell 24 percent in the first half of the year, as weak oil sector capex weighed on the group's performance.
    However, the U.K. energy support company did return to profit for the period, thanks in large part to cost reductions. Amec Foster Wheeler says its planned tie-up with Wood Group remains on track and is likely to close later this year. 
    Denmark's July EU-harmonized CPI grew 1 percent on the month. CPI inflation is up 1.5 percent for the year.
    Plenty of FTSE 100 companies trade ex-dividend today. Barclays, BP, GlaxoSmithKline and Anglo American are amongst the biggest names.
    Reuters calculated ahead of the open that this would trim over 40 points off the U.K.'s main index. The bluechip index is currently down around 50 points, or 0.69 percent.
    Ed Park, Investment Director at Brooks MacDonald has identified healthcare as a sector which has room to run, citing diets around the world moving to western preferences as well as the world getting older.
    He notes it is a volatile sector and diversification is needed. he notes particular uncertainty around drug trial results and how that will affect stock prices.
    Could health care provide the tonic?
    Park says big pharma is trying to bring down the cost of generic drugs while retaining margins on their held patents.
    Here are more stocks to watch this morning:
    • Zurich Insurance has reported second quarter profit above expectations. The Swiss insurer's net profit for the period increased to $896 million. Cost cuts at the group helping provide the 21 percent rise.
    • Adecco has posted second quarter profit roughly in line with expectations, as the company said it continued to benefit from positive hiring momentum. The CEO of the staffing company highlighted France, Iberia and Italy as particular bright spots, as hiring in construction and retail continued to grow.
    • European tourism group TUI says its profit target is on track as it made a nine month core profit for the first time. It says it expected annual turnover to rise by more than three percent. And it announced a plan to increase core earnings by at least 10 percent this year.
    • Altice and its American subsidiary, are exploring a takeover of Charter Communications, in what could be a $200 billion deal. The French telecoms group has made no secret of its plans to expand stateside, but it could face stiff competition from Japan's Softbank, which has also been working on a bid.
    BMW says global sales for the group in July rose 0.4 percent to 180,726 deliveries. The German automaker sales deliveries of the BMW brand is up 0.1 percent, the mini is up 2 percent, and eletric vehicles are up 53 percent.
    Deliveries in Europe are down 1.5 percent and down 13.7 percent in the U.S., while in China sales are up 8 percent.
    Group sales for the period January to July are up 4.3 percent on the year to 1.4 million cars.
    Shares in BMW are lower today.
    Swedish industrial production is up 0.8 percent month on month in June, beating expectations of 0.1 percent.
    Industrial output is now up 8.5 percent year on year to June. Orders grew 4.4 percent
    Also, service sector production is up 3.7 percent year on year.
    Lastly, Swedish house prices grew 4 percent in May to July from the prior three months, according to the country's stats office.
    Zurich Insurance has reported second quarter profit above expectations.
    The Swiss insurer's net profit for the period increased to $896 million dollars, ahead of a forecasted $790 million.
    The 21 percent rise comes as the group puts a turnaround plan in motion.
    Gordon Aitken, Head of European Insurance at RBC says the results were ahead of predictions and says the focus for the company will now be whether the firm can increase the dividend to shareholders.
    Meanwhile, Prudential is set to release its earnings. Traders are eager to know how the British insurer is doing, during a very complicated time for the insurance business in Europe
    Aitken says Prudential has a strong growth target in Asia and that will be another big focus.
    Adecco and Henkel are among the worst performers on the Stoxx 600 today. The pan-European stock index is down around 0.2 percent. 
    Despite posting Q2 results in line with expectations, the shares are the worst performer on the index and the stock is set for its worst day in a year. This may be because its results were not as good as its peers, such as Manpower and Randstad which both beat Q2 expectations.
    Henkel's latest results contained disappointing second quarter organic sales. The company's CFO said they see a moderate increase in raw material prices for the full year. A company executive says weakness in France is due to market decline, loss of market share and competitive pressures.
    All this week, we're talking about the future of work and how technology is changing our workplaces. UBS reckon that autonomous planes could be the future of air travel, saying it could save airlines $35 billion.
    Check out the details on that here:

    Pilotless planes could save airlines $35 billion, UBS says

    CNBCUBS analysts stated that there could be a material profit opportunity of more than $35 billion per year for the aerospace and aviation industry.
    These are the top headlines for the hour:
    • The war of words between the U.S. and North Korea escalates, with the rogue state labelling President Trump's rhetoric 'a load of nonsense', saying he only understands absolute force.
    • Adecco shares fall to the bottom of Europe's Stoxx 600, as the Swiss staffing group misses on revenue and sales. 
    • Glencore slashes debt and raises its forecast as it prepares for an M&A spree, leaving investors waiting for increased payouts.
    This U.S./ North Korean tension is, of course, taking place in China's backyard.
    The Chinese foreign ministry has issued a statement calling on all relevant parties to avoid any words or action that could "intensify problems or escalate the situation."
    Chinese state press is saying that this is a game of chicken between the U.S. and North Korea and that the two parties should get back to dialogue.
    All these lines are coming from our Beijing based reporter Eunice Yoon.
    The Stoxx 600 is down about a quarter of a percent. Here's how the major European markets are performing this morning.
    Trump adviser Sebastian Gorka says the U.S. is willing to 'use any appropriate measures' against the North Korean regime. The warning comes after Pygongyang announced it could be ready to launch a missile strike against the Pacific territory of Guam within a matter of days. 
    North Korea's state media reports 4 rockets will land 30 to 40 kms from Guam by mid-August. North Korea says it will get ready and then wait for the country's leader Kim Jong Un to give the order. CNBC's Chery Kang says this kind of detail in unprecedented.
    With North Korea tensions driving demand for safe haven assets, Peter Westaway, head of investment strategy Europe at Vanguard Asset Management, says it is very difficult to time political risk and investors have been bombarded with several political events over the last couple of years.
    Being able to predict them in advance is difficult enough, but even after the event knowing which way the market is going to jump as a result has proved very difficult. So I’m very wary of trying to advise investors of how to circumvent these events.
    Westaway says trying to second guess the market is not a smart strategy. He says he believes in keeping a diversified strategy mix of bonds and equities.
    The Philippines Central Bank keeps overnight interest rates unchanged. It holds it benchmark lending rate at 3.5 percent and borrowing rate at 3 percent.
    The central bank says it is ready to act if needed to keep inflation in check and says domestic liquidity remains ample. It says risks to inflation are tilted to the upside.
    French authorities have arrested a man suspected of driving into a group of soldiers in a Paris suburb, injuring six. He was shot while attempting to evade police. Investigators are looking into whether he has ties to terrorist groups.
    Meanwhile, the U.S. has imposed new sanctions on eight Venezuelan officials close to President Nicolas Maduro. The new penalties don't target the country's oil industry, but Reuters reports that Washington is considering sanctions on Venezuela's energy sector.
    Peter Westaway, head of investment strategy Europe at Vanguard Asset Management, says he thinks we will get a third rate hike from the Federal Reserve this year.
    He says the Fed is uncomfortable with the amount of monetary accommodation in the system.
    There's no spare capacity, unemployment is very low, inflation is pretty much up at the target level, so why on earth would there be still so much policy accommodation? I think they're itching to get that accommodation removed.
    U.K. June manufacturing output is unchanged for the month, was forecast to fall 0.1 percent.
    The U.K.'s goods trade deficit widens to £12.722 billion in June from £11.306 billion in May, its biggest deficit since September.
    U.K. industrial output beat expectations, rising 0.5 percent in June.  Construction output fell 0.1 percent month on month, less than the growth of 1.5 percent expected.
    Sterling pares losses against the dollar after better than expectated manufacturing and industrial output data. The U.K. currency remains down around 0.2 percent against the greenback.
    Prudential reports first half results, with operating profits up 5 percent to £2.358 billion. Net profit was £1.51 billion on revenue of £43.01 billion.
    The company announces it plans to merger its U.K. businesses M&G and Prudential U.K. & Europe. The current chief executive of Prudential UK&E, John Foley, will become chief executive of the combined company.
    Shares in the U.K. company remain lower after the results.
    Is Facebook finally going to have to admit it's a media company? It has just launched a rival video platform to YouTube called "watch", which will feature original content from its partners.

    Facebook plans to keep 45 percent of the ad revenue generated from the videos.

    CEO Mark Zuckerberg said the platform is all about finding programmes that bring fans together, but some critics have said that TV has been doing that for decades.
    CNBC is talking all about the rapidly changing future of work this week. Today we're looking at how companies work to anticipate what surprises technology will throw us next.
    Graeme Codrington, futurist at Talk Talk Business, says tech trends in wearable technology and communications will impact the workplace of the future.
    Any time you are looking at technology in the work place, you're trying to triangulate a productivity bump, but you've got to do that in the context of safety and security of the data and the systems and finally these days more importantly is personal freedoms.
    If you can find technologies that are going to help you with productivity, keep your data safe and give people the sense of freedom and personal responsibility, then you've got something you know is going to impact the world of work for the next day or two.
    Turkey's energy minister says Northern Iraq's referendum decision will harm energy cooperation and will have a price for all of Northern Iraq.
    Greek unemployment in May dips to 21.7 percent from 21.8 percent in April.
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