World Markets Live - August 15 - CNBC Live Events

CNBC Live Events

World Markets Live - August 15

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

    After two hours of trading, European markets are higher with the exception of the Swiss market.
    Gold prices fell in early trade on Tuesday as easing tensions between the United States and North Korea saw investors seek riskier assets like equities.
    Safe haven flows into the yen, gold and even bitcoin have eased back out and into equities.
    US stock futures are up ahead of trade this Tuesday morning.  
    A slew of data is set to be released today, with retail sales, import and export price indexes and the Empire State manufacturing survey all due out at 8.30 a.m. ET.

    Later on in the day, business inventories and the NAHB/Wells Fargo housing market index will come out at 10.00 a.m. ET, followed by Treasury International Capital (TIC) data, due out at 4.00 p.m. ET.

    On the earnings front, Home Depot, Coach, TJX Companies, Urban Outfitters and Agilent Technologies are some of the major names set to publish their latest corporate reports.
    The United Kingdom has set out its strategy for Brexit as it attempts to minimize disruption for British business.
    A position paper, unveiled by Brexit Secretary David Davis, calls for  a time limited customs union that would continue after Britain's departure in March 2019.
    The EU has countered that such agreements cant be put in place until the terms of withdrawal have been agreed. The U.K. also wants the freedom to begin negotiation over trade with other countries. Currently Britain is not allowed to do this although 'diplomacy' with various countries have clearly been started.
    Britain's Davis added that the EU is getting 'quite cross' over Brexit divorce bill.
    The Confederation of British Business, while welcoming the added clarity, has warned that the clock is ticking and the UK government must ensure there is confidence about the future that will allow businesses to keep investing.
    by david.reid edited by Spriha Srivastava 8/15/2017 10:10:12 AM
    Maplecroft's chief economist Michael Henderson has put together some different data points to illustrate why the Japanese economy might be pulling itself out of the doldrums.
    • Japanese GDP growth surged to an annualized 4.0% in Q2 2017, up from 1.5% the previous quarter and smashing market expectations of a 2.5% increase. 
    • The economy is enjoying the longest uninterrupted expansion in over a decade. Most encouraging was a 0.9% q/q increase in consumption, up from 0.4% q/q in Q1. This is partly attributable to the positive ‘wealth effect’ of a recent stock market rally.
    • However, rising household spending may also reflect firming wage growth as spare capacity in the labor market shrinks.
    • Consumption is crucial to boosting demand and prices, and remains the country’s best hope of lifting itself out of the deflationary funk of the past two decades.
    • Investment also enjoyed a large uptick in in Q2. Going forward, capital spending will continue to be buoyed by construction related to the 2020 Olympics.
    Henderson has checked his optimism with a couple of points:
    • Yet while this has raised hopes that Japan may finally be pulling out of the doldrums, the economy still faces major challenges. These include substantially below-target inflation and a rapidly aging population which will weigh on medium-term domestic demand.
    • Accordingly, the Bank of Japan is likely to take a very cautious approach to unwinding its program of quantitative easing and normalizing monetary policy.
    Are the Japanese finally starting to spend?
    Apple is gearing up to release a new Apple Watch with cellular connectivity. It will not require tethering to an iPhone for key functions like calls, messaging, and streaming music. The third Apple Watch is expected to be unveiled at the company's September iPhone launch event.
    For more on this story click here:

    The coming Apple Watch won't need to be linked to an iPhone to make calls

    CNBCThe Apple Watch will not require tethering to an iPhone for key functions like calls, messaging, and streaming music.
    The Unite union has announced that RBS are to cut a further 40 percent of IT staff from its London base:
    Royal Bank of Scotland has today (Tuesday 15 August) told staff that it will be cutting a further 40 per cent of permanent staff from its London IT function by 2020. Unite understands that this, coupled with the 65 per cent reduction of contractors announced today, will total a reduction of 880 staff.
    The UK government owns a 71 per cent stake in RBS. CNBC has contacted RBS and are awaiting a response.
    A fall in the pound today has given a lift to the FTSE 100, especially its large number of overseas earners. The FTSE is now up 0.48 percent to a day’s high of 7388.
    The pound has fallen after inflation figures came in a touch lower than expected. This gave rise to the belief that the twin forces of a sterling fall and higher oil price had now passed through the UK economy and the squeeze on UK households may now start to abate.
    That takes pressure off the Bank of England to raise rates and with only two MPC members voting for a rise at the last meeting, investors are betting that the cost of borrowing is staying low.
    U.S. stock index futures pointed to a positive open on Tuesday, as tensions around North Korea show signs of alleviating and investors turn their attention to more data.

    Dow Jones industrial average futures rose 55 points, while S&P 500 and Nasdaq 100 futures gained 5.25 points and 15 points, respectively.
    China will take action to defend its interests if the United States damages trade ties, the Ministry of Commerce said on Tuesday, after President Donald Trump authorized an inquiry into China's alleged theft of intellectual property.

    China warns it will 'take action to defend interests' if US harms trade ties

    CNBCChina's Ministry of Commerce insists that the country has made progress in protecting intellectual property.
    Britain's proposals for its future customs relationship with the European Union are "a fantasy", the European Parliament's Brexit coordinator Guy Verhofstadt said on Tuesday.
    Britain said it wants an interim customs agreement with the EU after Brexit to allow the freest possible trade of goods, but that it will also seek the right to negotiate other trade deals.
    Prime Minister Theresa May is seeking to move Brexit negotiations on to the issue of Britain's future EU relationship, but the bloc has said it must first resolve divorce issues, including citizens rights and the exit bill.

    To be in and out of the Customs Union & "invisible borders" is a fantasy. First need to secure citizens rights & a financial settlement, Verhofstadt said on Twitter.
    Struggling German airline Air Berlin filed for insolvency on Tuesday and said it was in talks with Lufthansa over the German airline buying parts of its business.

    Air Berlin said its flights were continuing and the German government was supporting it with a bridge loan. That's according to Reuters.
    Check out which companies are making headlines before the bell:
    Home Depot – The home improvement retailer earned $2.25 per share for the second quarter, three cents a share above estimates. Revenue beat forecasts, as well. Comparable-store sales rose 6.3 percent globally, beating the 4.9 percent Thomson Reuters consensus estimate. 
    Snap – Cantor Fitzgerald upgraded the stock to "overweight" from "neutral," based on increased engagement with the Snapchat parent. Cantor also notes that the effect of the recent lockup expiration is now fully reflected in the stock's price, as are risks to Snap's outlook.
    Intel – Intel CEO Brian Krzanich and Under Armour CEO Kevin Plank were the latest to resign from President Donald Trump's manufacturing council, following the president's initial response to the Charlottesville, Virginia, violence over the weekend. Merck CEO Kenneth Frazier had quit the council earlier in the day.
    Costco – Costco owes Tiffany at least $19.4 million in damages over the sale of counterfeit Tiffany diamond engagement rings, according to a federal judge's ruling. The warehouse retailer said the judge's ruling contained multiple errors and that it would appeal.
    Click here to read the full list of companies.
    Gains against the yen and a weakened British pound led a broad rise in the U.S. dollar on Tuesday, helped by an easing of the tensions around North Korea that last week drove capital towards Switzerland and Japan.

    The yen and the Swiss franc had both surged as Washington and Pyongyang ramped up military threats following the imposition of new sanctions on the Koreans through the United Nations 10 days ago.
    Air Berlin shares down nearly 50 percent on news of insolvency:
    US retail sales rose 0.6% in July, vs 0.4% increase expected
    U.S. retail sales were expected to rise 0.4 percent in July after dropping 0.2 percent a month earlier.
    The City of London, home to the U.K.'s largest trading and financial services, is suffering from a loss of professional talent due to Brexit, warns a U.K. job recruitment agency.

    "The City is still haemorrhaging talent because of Brexit, and we risk losing jobs, too," said Hakan Enver, operations director at recruitment consultancy Morgan McKinley Financial Services, in a press release published Tuesday.

    London's financial district is ‘hemorrhaging talent’ because of Brexit, warns UK job recruiter

    CNBCThe home to the U.K.'s financial services is suffering from a loss of professional talent because of Brexit, warns a recruitment agency.
    European markets were higher Tuesday morning as tensions between the U.S. and North Korea showed signs of subsiding, prompting investors to return to riskier assets.
    U.S. stocks are now open for trading and the indexes are moving higher as tensions start to ease in the Korean peninsula:

    US stocks open higher on strong economic data, North Korea tension easing

    CNBCU.S. stocks opened higher on Tuesday after economic data easily surpassed expectations while tension with North Korea appears to have eased.
     Oil prices fell on Tuesday, extending a heavy sell-off after a surge in the dollar and weighed down by signs of weaker demand in China, the world's second-largest consumer.
    U.S. homebuilders bounced back in August from a recent funk, as current sales and sales expectations leaped forward.

    A monthly index of builder sentiment rose 4 points to the highest level since May. The National Association of Home Builders/Wells Fargo Housing Market Index now stands at 68. Anything above 50 is considered positive sentiment. The index was at 59 last August.

    Homebuilder sentiment soars on strong sales

    CNBCU.S. homebuilders bounced back from recent funk, as current sales and sales expectations leaped forward.
    Paresh Davdra, CEO and Co-Founder of RationalFX analyses sterling's performance against the dollar:
    Key data released today has revealed that the rate of inflation held steady during July. Despite nerves ahead of the data release which saw the pound dip against peers this morning, the inflation figures surprised analysts through holding steady at 2.6%. A fall in fuel prices also suggests that the squeeze on UK households has abated, but the rise in the retail price index to 3.6% indicates it may be a temporary reprieve.  
    The data put pressure on sterling, which fell further in response to the inflation figure as it confirmed to analysts that a more hawkish policy from the BoE was unlikely in the near future. With analysts looking for economic and political certainty to drive the pound, the government’s latest announcement on Brexit negotiations today is likely to provide some hope.
    Easyjet shares hit session high, up 4.8 percent after source says airline part of talks for Air Berlin assets.
    European markets are now closed for trading with the pan-European Stoxx 600 closing fairly flat:
    Major European indexes have closed slightly higher today as tensions start to ease in the Korean peninsula:
    And that's all from us here at World Markets Live today. Join us tomorrow from 0600 London time for more news and analysis. Till then, have a nice evening and see you soon.
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