World Markets Live - August 22 - CNBC Live Events
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CNBC Live Events

World Markets Live - August 22

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. How is the new week treating you? Markets across the globe have been trading mixed to lower as investors remain unclear on the next course of policy from President Trump. In Europe, futures indicate modest gains at open as oil prices recover from its 2 percent drop:
     
     
  • Here are your top stories at this hour:
     
    • Asian equity markets trade higher, breaking with Wall Street, with oil prices also recovering after dropping more than two percent, causing a lag in energy stocks.
    • U.S. President Trump announces a reversal of strategy in Afghanistan, warning against creating a vacuum for terrorists, but declining to give details on troop levels in a prime time address. 
    • BHP bows to pressure from activist investor Elliott Advisors, announcing it is exiting its shale business, after its underlying earnings and final dividend miss expectations 
    • And throngs of Americans come out to see the total solar eclipse that spanned the country from Oregon to South Carolina, an event that has not happened in decades.  
       
  • President Trump promises a new way forward in Afghanistan, laying out a revised strategy for the conflict there. He promised more troops, but didn't give specifics about numbers and timing.
     
    We cannot repeat the mistake in Afghanistan our leaders made in Iraq, Trump told the soldiers gathered for the speech.
     
    One way or another, these problems will be solved. I am a problem solver. And in the end, we will win, he added.
     
    Trump said he and his advisors decided the way forward on Afghanistan at the Camp David presidential retreat Friday, following a long series of deliberations. Trump had reportedly been reluctant to let U.S. involvement drag on — he repeatedly slammed the Obama administration for staying in Afghanistan as costs and casualties mounted.
     
    Ultimately, the president said his decision came down to three factors:
     
    • He wanted an outcome "worthy" of the sacrifices made, "especially the sacrifice of lives."
    • The president said he feared that terror groups like al-Qaeda and ISIS could fill a void left by U.S. troops.
    • Trump also said he felt that the U.S. faced "immense" security threats in the region.
     
     
  • There is zero chance that the U.S. will fail to raise the federal debt ceiling, according to Senate Majority Leader Mitch McConnell. Speaking at a town hall in Kentucky with Treasury Secretary Steven Mnuchin, the pair sought to play down fears of a U.S. default. Mnuchin said it's critical to get this issue off the table
     
     
    As it relates to the debt limit, this is not about spending money this is about paying for what we've spent. And we cannot put the credit of the United States on the line. We are the reserve currency of the world. We are the major economy of the world. And I look forward to working with congress to have this done promptly.
  • BHP Billiton announced its intention to sell its U.S. shale oil assets, as it posted 2017 earnings that missed analyst expectations.
     
    However, the global mining giant did manage to swing to a full-year net profit of around 6 billion dollars, having posted a record loss of 6.4 billion dollars a year ago.
     
  •  
    ADP CEO Carlos Rodriguez says he "agreed to disagree" with billionaire activist investor Bill Ackman after his hedge fund Pershing Square launched what Rodriguez characterised as a "proxy contest."
     
    This, after the firm rejected Pershing's proposal for three new board candidates after presenting a 167-slide document on the firm's issue areas. Speaking to CNBC's Mad Money, Rodriguez mocked Ackman for his handling of the situation, saying he had asked to meet him after he returned from vacation, but Ackman declined, citing his need for "leverage".
     

    ADP CEO says Bill Ackman, on phone call, refused to meet because he needed 'leverage' over board

    CNBCJim Cramer sat down with Carlos Rodriguez, CEO of ADP, who spoke to his company's proxy fight with activist investor Bill Ackman.
  • There was no indication of intent in a collision between a U.S. Navy ship and a tanker near Singapore, that's according to U.S. Navy chiefs speaking from the Pentagon. They said that investigations into the cause of the crash will examine every possibility.
     
    Fleet commanders have been asked to implement a one-to-two day operational pause to ensure safe and effective operations. Ten sailors are still missing. 
     
  • Spanish police have shot and killed the Barcelona attacker responsible for killing 14 people after he drove his van through crowds on Las Ramblas, the only one of 12 members of the militant cell responsible for Thursdays attacks still at large.
     
    Police tracked Younes Abouyaaqoub to a quiet area approximately 35 miles outside of Barcelona, confronting him after he raised what appeared to be an explosives belt. 
     
  • Here are your top stories at this hour:
     
    • Asian equity markets trade higher, breaking with Wall Street, with oil prices also recovering after dropping more than two percent, causing a lag in energy stocks.
    • U.S. President Trump announces a reversal of strategy in Afghanistan, warning against creating a vacuum for terrorists, but declining to give details on troop levels in a prime time address. 
    • BHP bows to pressure from activist investor Elliott Advisors, announcing it is exiting its shale business, after its underlying earnings and final dividend miss expectations 
    • And throngs of Americans come out to see the total solar eclipse that spanned the country from Oregon to South Carolina, an event that has not happened in decades.  
  • Cryptocurrency Ethereum has neared a two-month high, making gains as uncertainty over the future of Bitcoin weighed on investors' minds.

    Those closely tracking Bitcoin have expressed concern over the digital currency's proposed split to take place in November, coming just months after another split into 'bitcoin' and 'bitcoin cash' which happened August 1st. This as investors await a network upgrade from Ethereum, which promises to improve privacy and security.
  • Oil prices rose on Tuesday, lifted by indications that supply is gradually tightening, especially in the United States.

    U.S. crude oil stocks have been falling consistently in recent weeks. If the downtrend in oil inventories is maintained, then a bullish case can be made for oil, especially given the ongoing supply restrictions from OPEC and Russia," said Fawad Razaqzada, market analyst at futures brokerage Forex.com.
     
     
     
     
  • Gold prices logged their highest finish in nearly 11 weeks in U.S. trade, settling just below the key resistance level of 13-hundred dollars. The value of the precious metal has jumped by around 12 percent since the start of the year. 
     
     
  • During the eclipse, Goldman Sachs CEO threw some shade at President Trump.
     
    Without mentioning him by name, Lloyd Blankfein tweeted that he wished "the moon wasn't the only thing casting a shadow across the country. We got through one, we'll get through the other."
     
  • Here are your top stories at this hour:
     
    • Asian equity markets trade higher, breaking with Wall Street, with oil prices also recovering after dropping more than two percent, causing a lag in energy stocks.
    • U.S. President Trump announces a reversal of strategy in Afghanistan, warning against creating a vacuum for terrorists, but declining to give details on troop levels in a prime time address. 
    • BHP bows to pressure from activist investor Elliott Advisors, announcing it is exiting its shale business, after its underlying earnings and final dividend miss expectations 
    • And throngs of Americans come out to see the total solar eclipse that spanned the country from Oregon to South Carolina, an event that has not happened in decades.  
  • Antofagasta H1 revenue rose 41.9 percent to $2.049 billion. H1 pretax profit rose 149.2 percent to $689.1 million. 
  • Trump pledges to 'handily' defeat terrorism in Afghanistan, says he won't reveal troop numbers

    CNBCPresident Trump said the U.S. will stay engaged in the 16-year-old war in Afghanistan, against his "original instinct" to pull troops out of the country.
  • British Defence Secretary Fallon says he welcomes U.S. commitment to Afghanistan. Says he agreed with Secretary Mattis that we have to stay the course in Afghanistan. That's according to Reuters.
  • European markets were set to open higher on Tuesday morning, after modest gains on Wall Street while investors awaited the annual central banking conference in Jackson Hole later this week.
     
     
  • BHP Billiton announced its intention to sell its U.S. shale oil assets, as it posted 2017 earnings that missed analyst expectations.
     
    The company posted full year revenue of $38.28 billion and pretax profit of $10.32 billion.
     
     
  • BHP’s decision to bow out from the shale oil business reflects a changing trend in the mining industry, says Paul Renken, senior geologist and mining analyst at VSA Capital.
     
    The times have changed essentially because the mining firms have discovered that they are going to be very good at certain commodities and producing those commodities and they are not going to be very good at others, such that you can’t be a producer in the best quality of all the materials that are out there.
     
    Renken says BHP will stay in the business of iron ore, coal and others, and will spin off some of the business.
     
     
  • In a blow to Warren Buffett's Berkshire Hathaway, Sempra Energy announced it will buy Oncor for $9.45 billion, in deal valued at $18.8 billion including debt.
     
    Berkshire had bid $9 billion for the power transmission company, but Paul Singer's Elliott Management, Oncor's biggest creditor, had sought to derail Buffett's bid.
     
    Oncor's owner ultimately decided to sell to Sempra because it was bigger, had a lower break-up fee, and the support of Elliott.
  • French Interior Minister Collomb confirms that car used in Cambrils attack was caught speeding in Paris region. That's according to Reuters.
  • ADP CEO Carlos Rodriguez says he "agreed to disagree" with billionaire activist investor Bill Ackman after his hedge fund Pershing Square launched what Rodriguez characterised as a "proxy contest."
     
    The HR outsourcing firm rejected Pershing's proposal for three new board candidates after presenting a 167-slide document on the issue areas.
     
    Speaking to CNBC's Mad Money, Rodriguez mocked Ackman for his handling of the situation, saying he had asked to meet him after he returned from vacation, but Ackman declined, citing his need for "leverage".
     
    Bill Ackman needed "leverage" over ADP
  • Japan's foreign minister says it is time to exert pressure on North Korea, not time to hold six-party talks, Reuters reports.
     
    The minister says pressure needs to be maintained until North Korea shows clear intention and conduct for denuclearisation. 
     
    Loopholes in UN resolutions against North Korea must be done away with, the minister added.
  • European markets are now open for trading. Here's a look at the pan-European Stoxx 600:
     
     
  • Let's look at individual stocks as they slowly wake up to markets open this morning. Modest gains across the board as investors as investors awaited the annual central banking conference in Jackson Hole later this week.
     
     
  • BHP announced its intention to sell its U.S. shale oil assets, as it posted 2017 earnings that missed analyst expectations. However, the global mining giant did manage to swing to a full-year net profit of around 6 billion dollars, having posted a record loss of 6.4 billion dollars a year ago.
     
     
  • Rising copper prices have helped Antofagasta post an 80 percent surge in first half profits. The Chilean miner, which more than tripled its interim dividend, added it was on track to meet its full year targets. Increased sales volumes and tighter cost management also provided a boost to Antofagasta's numbers. 
     
     
  • British homebuilder Persimmon has posted a 30 percent increase in pretax profit in the first half of the year. The firm says uncertainty around Brexit will weigh on new land investments. However, Persimmon added that the housing market is still confident, and conditions were stronger than expected following the referendum. It saw an 8 percent rise in volumes in the period.
     
     
     
  • Let's take a look at the best and the worst performing stocks this morning:
     
  • We are at a crucial moment for stock markets, according to Kevin Boscher, chief investment officer at Brooks Macdonald International.
     
    He says this is because valuations are so full and the macro situation is changing.
     
    In particular, we are moving to a period where central banks are starting to change policy.
     
    Equities over the past 7 or 8 years have largely been driven by global liquidity, by the improving economic recovery post-crisis, but it’s not very important for equities that they are driven more by equities than by liquidity.
     
    Boscher suggests cheaper stock markets will start to show more value.
     
     
  • Shares in Fiat are once again driving higher, nearing the top of the Stoxx 600. This after China's Great Wall Motor confirmed its interest in the Italian-American carmaker. A report in trade publication Automotive News has suggested the Chinese carmaker is eyeing Fiat Chrysler's Jeep brand. This as Great Wall looks to invest in its SUV profile in the American market. 
     
     
  • German Economy Minister Brigitte Zypres says she welcomes Lufthansa's move to take over assets of insolvent carrier Air Berlin. According to the Handelsblatt, she said Lufthansa's position will be strengthened by the acquisition. However, a ministry spokesperson tried to play down Zypres' comments saying the Government doesn't have a preferred bidder for Air Berlin. 
     
     
  • A stock market driven by liquidity produces a rising tide which raises all ships, according to Saker Nusseibeh, CEO of Hermes Investment Management, but now we are entering a period which requires stock selection in order to outperform.
     
    The second thing is that there are markets which do offer better value. I agree about parts of Europe; Europe as a whole is attractive, but Germany is attractive. Japan offers some attractive parts within it and small caps are in general more attractive than large cap anyway.
     
    He says once the Fed starts raising rates, this will favour stock picking strategies.
     
     
  • Persimmon has announced a 30% increase in profits to £457.4 million in its half year results this morning.
     
    The housebuilder completed 8% more property sales in the first six months of 2017, and the average selling price rose 4% to £213,262.
     
    The company said its private sales rate since 30th June 2017 has been 2% higher than the same period in the previous year, and that pricing remains ‘firm.’
     
    The group re-iterated its commitment to repay surplus capital of at least £1.10 a year until 2021.
     
    Shares rose 3% in early morning trading.
     
    Laith Khalaf, Senior Analyst, Hargreaves Lansdown analyses the results:
     
    The latest results from Persimmon have a bit of swagger about them, and well they might, with profits rising by almost a third despite a slowdown in economic growth.
     
    The UK housebuilding sector is still sitting pretty, with interest rates staying low, the Help to Buy scheme supporting demand, and a lack of supply helping to boost prices.
     
    However the recent scare over the early withdrawal of Help to Buy demonstrated that the sector is vulnerable to a correction if one of those tailwinds suddenly disappears.
     
    For the time being that looks unlikely though, and policymakers will think twice about withdrawing support from the property market, as falling house prices don’t tend to draw cheers from the crowd.
     
  • Shares in Provident Financial fall further, now down 50.8 percent and on track for biggest one-day loss on record.
  • Will the euro keep on rising?
     
    It’s a difficult call, according to Kevin Boscher, chief investment officer at Brooks Macdonald International.
     
    It partly depends on ECB policy. We’re unlikely to get much direction from Jackson Hole this week. But the euro has got a lot of things going for it. Firstly, the region as a whole is in a current account surplus and it hasn’t got a huge fiscal deficit.
     
    And as the outlook for the region improves, the sentiment improves and in particular, there is a significant gap between real bond yields at the 10-year level, between Germany for example and the U.S.
     
    Boscher says as this gap closes over the next few years, it will attract capital back into European markets and drive the euro higher.
     
     
  • Here are your top headlines at this hour:
     
    • Striking gold! BHP and Antofagasta shares jump to the top of Europe's Stoxx 600 as both miners report a surge in quarterly profits.
    • Another day, another rally for Fiat Chrysler. Shares in the Italian-American automaker accelerate after China's Great Wall Motor confirms its interest in the group, as it looks to drive investment in the US SUV market. 
    • Persimmon punches to the top of the Stoxx 600, as the UK homebuilder posts a 30 percent rise in first-half pre-tax profits, while saying the country's housing market is still "confident" despite Brexit. 
    • U.S. President Trump announces a reversal of strategy in Afghanistan, warning against creating a vacuum for terrorists, but declining to give details on troop levels in a prime-time address. 
  • Coming up on CNBC: another string to your bow. How antique instruments can help diversify your investment portfolio.

  • NATO Secretary General says welcome President Trump's new approach to Afghanistan and the region. The NATO SAG says NATO remains fully committed to Afghanistan. That's according to Reuters.
  • Searching for a sound investment... antique instruments have become an attractive alternative asset for some. The finite supply of rare violins has meant steadily rising prices, with pieces by master craftsman Stradivarius appreciating 11 percent a year, over the last decade.
     
    Florian Leonhard, expert and leading authority on fine violins at Florian Leonhard Fine Violins, says there are only around 600 Stradivarius violins left in the world.
     
    There are probably around 3000 instruments that are worth more than a million dollars apiece. That’s quite a small segment compared to 4 billion people in the world.
     
    What happened is classical music is a timeless interest field of people in society and that society has grown worldwide from a small European situation 400 years ago, it’s now in North America and also covering all of Asia.
     
     
  • Germany's 10-year government bond yield was stuck near one-week lows on Tuesday ahead of a gathering of top central bankers later this week that could shed more on light on the direction for monetary policy.

    Bund yields have fallen back from 18-month highs hit in July -- shortly after comments from European Central Bank chief Mario Draghi were seen paving the way for a scaling back of the ECB's massive monetary stimulus in the months ahead.
     
     
  • A little under an hour and European stocks continue to trade higher as investors keep an eye on the upcoming Jackson Hole conference:
     
     
  • The long-term conditions for the dollar have not changed, says Saker Nusseibeh, CEO of Hermes Investment Management. He says emerging markets pegged to the dollar have benefited from their relatively weak position.
     
    They have built economies that can cope with a slightly stronger currency. All that its done is made the U.S. a competitor. Its made some of them better exporters which have currencies pegged to the market. They can cope with some movement but not a huge one.
     
    The dollar index is inching higher today ahead of the Jackson Hole economic symposium at the end of the week.
     
     
     
     
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