World Markets Live - August 1st - CNBC Live Events
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CNBC Live Events

World Markets Live - August 1st

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

  • Good morning everyone. Here are your top headlines at this hour:
     
    • The major U.S. averages post their best month since February. Oil breaks a losing streak with its best monthly performance in over a year, as the Treasury slaps sanctions on Venezuela.  
    • President Trump removes Anthony Scaramucci from his role as Communications Director after only 10 days in the job, as new chief of staff John Kelly makes his mark on the White House. 
    • Shipyard spat! Italy's Prime Minister Paolo Gentiloni says he will defend his country's interests after French President Emmanuel Macron angers Rome by nationalising the Italian-owned STX shipyard. 
    • On the earnings front, investors are awaiting BP in about an hour, while Apple will report after the bell stateside. 
       
  • Anthony Scaramucci became the shortest-serving communications director in White House history. He is the latest in a series of high-profile Trump administration officials to be forced out of the West Wing. Press Secretary Sean Spicer resigned last month, while former Marine general John Kelly replaced Reince Priebus as President Trump's chief of staff yesterday.
     
    White House Communications Director Anthony Scaramucci Interviewed By Television Reporter At The White House : News Photo
  • The Washington Post reports President Trump personally dictated a misleading statement on behalf of Donald Trump Junior. The statement claimed Trump Junior's meeting with a Russian lawyer focused on an adoption program. But later disclosures revealed Trump Junior expected to get damaging information about Hillary Clinton. A Trump attorney told the Post its report was "inaccurate" and "of no consequence."
     
    Donald Trump Awards Medal Of Honor To Vietnam War Veteran James C. McCloughan : News Photo
  • Venezuelan President Nicolas Maduro is attacking U.S. sanctions on the country, calling them desperate. The White House imposed a number of non-oil related sanctions on Maduro's government, labelling him a dictator. The U.S. administration says Maduro seized absolute power through a sham election, undermining democracy. Here's how U.S. national security advisor H.R. McMaster described the situation.
     
    President Maduro Holds Press Conference Amid Cabinet Changes : News Photo
  • French Finance Minister Bruno Le Maire says STX shipyard must not be directed by French state. The finance minister says France wants a private shareholder for STX and Italy's Fincantieri today is best industrial group for project. That's according to Reuters.
  • DSM has posted a 42 percent jump in net profit for the first half of the year and now expects full year earnings growth in the double digits, ahead of expectations.
     
    Feike Sijbesma, CEO, DSM joins us live:
     
    We conclude a very strong first half. All our businesses have been growing faster than the markets we operate in. Net profit up more than 40 percent.
     
     China is doing very well. If you look at the macro economic indicators, China is growing 10 percent but DSM is growing more than 10 percent.
  • Here are your top stories at this hour:
     
    • Oil breaks a losing streak with its best monthly performance in over a year, as the U.S. Treasury slaps sanctions on Venezuela.  
    • President Trump removes Anthony Scaramucci from his role as Communications Director after only 10 days in the job, as new chief of staff John Kelly makes his mark on the White House. 
    • Shipyard spat! France's finance minister hints a deal may be possible in the tussle with Italy over the STX shipyard. Italy's prime minister promises to defend Rome's interests, following France's nationalisation of the shipworks and blocking of an Italian buyout.
    • On the earnings front, investors are awaiting BP in about an hour, while Apple will report after the bell stateside. 
       
  •   

    Oil surges into the close to settle above $50, posts best monthly gain since April 2016

    CNBCOil prices rose above $50 a barrel, as traders raise bullish bets on crude and analysts warn of headwinds.
  • A walkout at the BoE! Support staff including maintenance and security personnel at the Bank of England will go ahead with a three-day strike after talks aimed at averting the action failed. Employees are angered over pay, and have planned protests outside the central bank. The strike marks the first in more than 50 years, by BOE staff. 
     
    Bank Of England To Cut Growth Forecasts After First-Half Slowdown : News Photo
     
     
  • Theresa May's office has confirmed that the free movement of people will come to an end after Brexit. The prime minister's team was forced to clarify its position after senior cabinet officials appeared to take contradictory lines on the issue.
     
    Last week the UK Home Secretary Amber Rudd indicated there would likely be a relatively liberal post-Brexit migration regime.
     
    U.K. Prime Minister Theresa May Attends Weekly Questions And Answers Session : News Photo
     
     
  • The City of London could lose 40-thousand banking posts as a result of Brexit, according to a study by the consultancy Oliver Wyman. The job losses would deal a particular blow to the UK treasury, which derives a significant portion of its tax revenues from the financial sector. A number of banking giants say they are already working on plans to relocate staff from London ahead of Brexit. 
     
    Frankfurt and Dublin are emerging as the main destinations for potential new sales and trading entities, along with Paris, Luxembourg, and Amsterdam. In their planning, banks have found each jurisdiction to have particular advantages and disadvantages. Frankfurt is seen as attractive on supervisory stability and influence. Dublin’s tax advantages are being weighed up against a less convenient location and potential issues around relocating large and complex balance sheets. Paris and Amsterdam are considered attractive and convenient locations and are already home to several major wholesale banks.
  • Oil giant BP reports $928 million Q2 pretax profit, revenue $57.37 billion.
     
    BP Q2 underlying replacement cost profit of $684 million vs profit of $720 million. 
  • Bob Dudley - Group chief executive said:
     
    We continue to position BP for the new oil price environment, with a continued tight focus on costs, efficiency and discipline in capital spending.We delivered strong operational performance in the first half of 2017 and have considerable strategic momentum coming into the rest of the year and 2018, with rising production from our new Upstream projects and marketing growth in the Downstream.
  • Gold prices held steady near seven-week highs early Tuesday, after registering their biggest monthly gain in five in July, supported by a slump in the U.S. dollar and political uncertainty.
     
     
  • Venezuela opposition leader Antonio Ledezma and Leopoldo Lopez have been taken from their home. Both had been under house arrest. 
     
    This after the Venezuelan President Nicolas Maduro is attacking U.S. sanctions on the country, calling them desperate. The White House imposed a number of non-oil related sanctions on Maduro's government, labelling him a dictator. The U.S. administration says Maduro seized absolute power through a sham election, undermining democracy. Here's how U.S. national security advisor H.R. McMaster described the situation.
  • Here are your top stories at this hour:
     
    • Oil breaks a losing streak with its best monthly performance in over a year, as the U.S. Treasury slaps sanctions on Venezuela.  
    • BP beats on second quarter net profit as production rises 10 percent. CEO Bob Dudley says the oil giant remains well positioned for the present oil price environment. 
    • Assets under management at British fund Man Group rise nearly 20 percent in the first half, lifted by the firm's recent purchase of real estate fund Aalto. 
    • Are juicy returns in store for Apple's third quarter earnings? Analysts await results after the bell, eyeing whether anticipation of the iPhone 8 has hurt sales of older models. 
  • European bourses are expected to open mixed this morning as investors prepare for further earnings reports and digest further upheavals at the White House which weighed on the U.S. dollar.
     
     
  • Hedge fund Man Group reported a nearly 20 percent boost in assets under management during the first half. This figure was bolstered by new investment and the acquisition of a real estate fund.
     
    CNBC’s Gemma Acton says the company’s net inflows were incredibly strong, with $3 billion in the first quarter and around $5.2 billion this quarter. She says this is much stronger than previous quarters.
     
    What I would note though is that margin compression is very, very demonstrable here and that’s particularly in certain areas, such as FRM, their fund of hedge funds product. We see the overall margin has gone from 87 basis points to 79 basis points from the end of last year to now which is significant. 
     
    She says while sales have outweighed redemptions, it was at the expense of fees charged on their products.
     
     
  • U.S. oil opened above $50 per barrel for the first time since late May, supported by strong fuel demand, but ongoing high supplies from producer club OPEC kept prices from rising further.
     
     
  • Solvay has raised its full-year outlook, after second quarter core profit rose nearly 18 percent to 705 million euros, well ahead of forecasts.
     
    Karim Hajjar, CFO of Solvay, says the company is seeing strong momentum in each of its segments. He says the growth is broad-based.
     
    That’s what underpins our confidence and the fact we’ve now upgraded our guidance.
     
    Hajjar says demand is increasing. They are also innovating, which helps with the sustainability of its portfolio.
     
     
  • BP CFO says oil demand growth at 1.4-1.5 million barrels per day this year. He expects oil prices at $45-$50 this year, $50 in 2018. That's according to Reuters.
  • Karim Hajjar, CFO of Solvay, says the company is not expecting an easy ride.
     
    I think we have to compete for our leadership positions in the marketplace and sometimes things go for us, sometimes they go against us. Six months ago I thought we were going to be at 1.10 dollar to euro exchange rate. We’re at 1.16, 1.17, that does not help, but our job is to mitigate, overcome and succeed.
  • European markets are now open for trading. The pan-European Stoxx 600 has opened slightly higher as investors start to digest earnings report:
     
     
  • Major European indexes have also opened in the positive this morning:
     
     
  • Higher oil prices and deeper cost cuts have helped BP to a second quarter profit beat. The British oil giant reported a 10 percent rise in production, though it took a big charge related to failed exploration in Angola.
     
    BP is now targeting output of 800 thousand barrels per day by 2020. Despite seeing an increase in net debt, BP said it expects relief in the second half of the year from a boost in divestment proceeds and a decline in payments related to the Gulf of Mexico spill.
     
     
  • Rolls-Royce is running full throttle. The aerospace engine maker posted a first half profit of 287 million pounds, beating expectations. A pickup in engine orders boosted performance. The CEO says cost-cutting measures are working, but there's no room for complacency.
     
     
  • Let's take a look at the best and the worst performing stocks this morning:
     
  • With more money flowing into Europe, Chris Bailey, European strategist at Raymond James, says earnings are always lagging expectations. 
     
    It’s always hope that gets you that first stage, and the hope factor has improved materially. However, I would observe that we’ve only seen about half the money that flowed out last year from American and global investors out of Europe come back in. So in theory there is a lot of dry powder still out there which could still come into Europe and push the euro up further.
     
    Bailey says the big curve ball will be what we see in terms of economic reform in the next two years. He says if supply side reforms are achieved then growth may accelerate and more money will flow into Europe.
     
     
  • Solvay has raised its full-year outlook, after second quarter core profit rose nearly 18 percent to 705 million euros, well ahead of forecasts. Sales in the quarter meanwhile rose 11 percent from a year prior. The company said it expected to generate more than 800 million euros of free cash flow from continuing operations this year. 
     
     
  • Chris Bailey, European strategist at Raymond James, says there needs to be a rotation in Europe away from exporter led growth and towards something more domestic and regional centered.
     
    (This is) based on better growth rates in Europe assisting banking, retail, construction and related sectors; that rotation in markets. This for me is the key for the European results season this quarter. 
     
    He says there is still opportunity in Europe. 
  • Apple is set to release its third quarter earnings after the bell. It reported a decline in year-on-year iPhone sales in its previous quarter, and analysts are looking to see if anticipation of the iPhone 8 has hurt sales of older models. This is how Apple is trading in Frankfurt today:
     
     
  • Didi Chuxing says to invest and partner with Uber's European rival Taxify. That's according to Reuters.
  • Spanish manufacturing activity expanded in July, albeit at a slower pace than the previous month, as job creation grew at the fastest rate in more than 19 years and output and new orders kept increasing, a survey showed on Tuesday.

    Markit's Purchasing Managers' Index (PMI) of manufacturing companies stood at 54.0 in July, down slightly from 54.7 in June. The index has held above the 50 line separating growth from contraction every month since November 2013.
     
    There were signs of a loss of growth momentum in the Spanish manufacturing sector during July, but rates of expansion in output and new orders remained solid and firms were able to secure new export business at a stronger pace than in June, senior economist at Markit Andrew Harker said.
  • HeildbergCement's second quarter numbers have missed expectations following lower earnings and flat sales. The German firm says poor weather and the timing of religious holidays weighed on the performance.
     
     
  • UK homebuilder Taylor Wimpey is to pay a special dividend of 340-million pounds after reporting a near 20 percent increase in first-half revenues. However, the company was forced to set aside 130 million pounds to compensate homebuyers affected by a leasehold scandal. Speaking to CNBC earlier this morning, the Taylor Wimpey CEO Peter Redfern offered this assessment of the central london housing market 
     
     
  • Hedge fund Man Group reported a nearly 20 percent boost in assets under management during the first half. This figure was bolstered by new investment and the acquisition of a real estate fund. Shares in the company are rising strongly on the results.
     
    CNBC’s Gemma Acton says the market seems to really like the results.
     
    They believe in what  Man seems to be doing longer term in their strategic direction. What the chief executive very clearly said in the results statement is, look, this was a very lumpy, patchy first half. Don’t expect this to be replicated going forward either in terms of flows or margin compression.
     
    Acton says the company is moving towards its goal of a more institution-driven client base and more stable product line.
     
    Shares in Man Group are up nearly 6 percent today, and up 27 percent over the past 6 months.
     
     
     
  • Discussing asset management, Chris Bailey, European strategist at Raymond James, says there are big trends in the industry, such as the rise of exchange-traded funds (ETFs) which are fee compressing, but create opportunity.
     
    The ETF industry and the growth of it creates great opportunity for stock pickers and consequently proper active fund managers. It may look bad at the moment, fees may be going down, flows may be going to passive, but actually there may be an opportunity in the next iteration.
  • Here are your top headlines at this hour:
     
    • BP beats on second quarter net profit as production rises 10 percent. But the energy giant sees its earnings halve from Q1 due to a write-off on exploration in Angola. 
    • Assets under management at British fund Man Group rise nearly 20 percent in the first half, lifted by the firm's recent purchase of real estate fund Aalto. 
    • President Trump removes Anthony Scaramucci from his role as Communications Director after only 10 days in the job, as new chief of staff John Kelly makes his mark on the White House. 
    • Morgan Stanley takes a bite out of ASM International, downgrading the Dutch chipmaker and sending shares to the bottom of the Stoxx 600.
       
  • A little over 30 minutes since the start of the European session and Dax has slipped into negative:
     
     
  • Ahead of Apple earnings, Paul Gambles, co-founder of MBMG Group, says the movement is likely to move significantly on the earnings day.
     
    Even with all the guidance, there’s been some variance; there have been some details that have caused upsides or downsides.
     
    The key thing is going to be guidance, with Apple specifically, because of the iPhone 8, expectations are ramped up, are they going to be able to deliver that? Are they going to be able to get the supply chain right to get enough stock for whatever the forward sales are?
     
    He predicts Apple to make a strong move upside, but if there’s any kind of issues there could be a strong move downside.
     
     
  • Higher oil prices and deeper cost cuts have helped BP to a second quarter profit beat. The British oil giant reported a 10 percent rise in production, though it took a big charge related to failed exploration in Angola. BP is now targeting output of 800 thousand barrels per day by 2020.
     
    Despite seeing an increase in net debt, BP said it expects relief in the second half of the year from a boost in divestment proceeds and a decline in payments related to the Gulf of Mexico spill.
     
    Jason Gammel, global integrated oil & gas equity research analyst at Jefferies, says the most important news from the earnings was very strong cash generation by the company.
     
    This is the second quarter in a row where we calculate the company is covering the cash component of their dividend with free cash flow. We think that’s the most important thing to focus on today.
     
     
     
  • Italian manufacturing activity expanded steadily in July, although at a fractionally slower rate than the previous month, a survey showed on Tuesday.

    The Markit/ADACI Purchasing Managers Index (PMI) read 55.1 compared with 55.2 in June, remaining well above the 50 mark that separates growth from contraction.

    A Reuters survey of nine analysts had forecast a reading of 55.2.
  • French manufacturing activity held close to a six-year high in July as political uncertainty dissipated after the presidential election, a survey showed on Tuesday.

    Data compiler IHS Markit said its final purchasing managers' index (PMI) rose marginally to 54.9 from 54.8 in June, just shy of a six-year high reached in April.

    Business and consumer confidence surveys soared in the run-up to Emmanuel Macron's election as president in May on a pro-business, reformist platform. They have since eased off their peaks but remain high.

    The PMI reading for manufacturing was lower than a preliminary estimate of 55.4 but well above the 50-point line dividing expansions in activity from contractions.
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