World Markets Live - August 22 - CNBC Live Events
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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.

  • During the solar eclipse yesterday, 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."
     
     
  • These are the top headlines for the 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.
  • Norway's wealth fund rises in the second quarter. It announces a return on investment of 2.6 percent in Q2, or 202 billion krona. 
     
    The fund cut its fixed income holdings to 32.4 percent and raised its equities portfolio to 65.1 percent. The government withdrew 16 billion krona during Q2, versus 23 billion in Q1. 
  • Rising copper prices have helped Antofagasta post an 80 percent surge in first half profits. 

    The Chilean miner more than tripled its interim dividend and said 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. 
     
    Meanwhile, BHP shares are pushing higher in early trade after the mining giant posted a full year net profit of around six billion dollars. But BHP's earnings did MISS analyst expectations on a number of key metrics. CNBC reporter Matt Taylor filed this report that breaks down the numbers 
     
     
  • OPEC will debate whether to extend or end the OPEC and non-OPEC production cut at the cartel's next meeting in late November. That is according to Kuwait's Oil Minister.
     
    Speaking to Kuwait TV, he said he was optimistic about finding agreement, and said oil inventories had fallen more than expected in recent weeks.
     
    Oil prices are higher today.
     
     
  • Gold prices logged their highest finish in nearly 11 weeks in U.S. trade and settled just below the key resistance level of $1,300.
     
    The value of the precious metal has jumped by around 12 percent since the start of the year. 
     
     
  • Shares of Provident Financial have plummetted to a record low, after the British subprime lender's CEO quit. The firm also cancelled its dividend and issued a new profit warning, which is its second in two months. 
     
     
    Meanwhile, shares in Fiat are once again driving higher. 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.
     
     
  • ECB President Mario Draghi is set to deliver a speech tomorrow at the Nobel Laureate Meeting in Economic Sciences in Lindau, Germany. Investors are eagerly awaiting clues about how soon the central bank could begin to draw down its stimulus programme. 
     
    But perhaps it's Friday that is the biggest event of the week, as the world's top central bankers descend on Jackson Hole for the annual Economic Policy Symposium. 
     
    The dollar is making gains ahead of Fed Chair Janet Yellen's speech. 
     
    Valentin Marinov, head of G10 FX strategy at Crédit Agricole, says Yellen’s speech will be more important for the market.
     
    Jackson Hole as a whole, and Yellen’s speech in particular, will reiterate the message to the market that first came from the central bank gathering in Sintra earlier in the year that policy normalization is under way.
     
    He says central bank will continue to withdraw stimulus and predicts the dollar could emerge as one of the biggest beneficiaries.
     
     
  • U.K. July public sector net surplus excluding banks was £184 million sterling, versus an expected net borrowing of £950 million.
     
    That's the first July surplus since 2002.
     
    Public sector net debt excluding banks stands at £1.614 trillion, equivalent to 80.3 percent of GDP.
  • Hong Kong's July headline inflation is 2 percent from a year earlier, according to newly released data.
  • South Korea's trade minister Kim says the U.S. trade deficit with South Korea is not due to the bilateral free trade agreement (FTA), according to Reuters.
     
    Kim says no agreement was reached at this round of joint committee meeting. Kim says the two sides were at odds over the need to amend the FTA.
  • All this week, we're talking about alternative investments. We've already considered diamonds, whisky and modern art, but how about residential property in central London? Our next guest has a lot to say on that.
     
    Adam Challis, head of residential research for the EMEA at JLL, says prime central London property is treated as an asset class by many people.
     
    Clearly it has quite different drivers from the mainstream housing market. In the main, you’re dealing with purchasers that have more wealth than the asset is worth.
     
    As a result, price is a byproduct of the transaction rather than its defining feature in the way that the mainstream market works.
     
     
  • Spanish police have shot and killed the man they say drove the van that killed 13 people in Barcelona last week. He was the only one of 12 accomplices still at large. Police tracked him to a rural area outside Barcelona, shooting him after he raised what appeared to be an explosives belt. 
     
    Meanwhile in Finland, police have requested that two of five suspects being investigated over a stabbing attack last week be held in pre-trial detention for murder with terrorist intent.

    An 18-year-old Moroccan asylum seeker has been named as the main suspect in the attack that killed two people and wounded eight.
  • The manager of the world's biggest hedge fund says he's cutting his risk, comparing the current U.S. climate to that of the Great Depression.
     
    In an essay online, Ray Dalio wrote that the country was as economically and socially divided as it had been in 1937.
     
     
    And the Bridgewater Associates founder is not optimistic about the outcome, writing "Conflicts have now intensified to the point that fighting to the death is probably more likely than reconciliation."
     
     
  • NATO Secretary General Jens Stoltenberg has welcomed President Trump's decision to send more troops to Afghanistan. In a statement, Stoltenberg said the military alliance remained "fully committed" to the country, and would work to destroy sanctuaries for extremist groups in the region. 
     
    Meantime Afghan President Ashraf Ghani said he was "grateful" to Mr Trump for the assistance in fighting the Taliban. 
  • Sir Peter Westmacott, former U.K. Ambassador to the U.S., tells CNBC that the U.K. can help influence the situation in Afghanistan.
     
    So much of what’s going on, especially the terrorism in Afghanistan with the Taliban, has been a function of the very difficult relationship between India and Pakistan and I think the Brits have been able to help with that.
     
    Westmacott says the British military presence in the country is now down to a few hundred.
     
    I would like to think that on strategy and the broader diplomatic effort and on the absolutely critical point of trying to bring together the different players, including the Taliban, into a political process, that ought to be something with which the Brits can help.
     
     
  • The German ZEW institute survey of economic sentiment falls to 10 points in August from 17.5 points the previous month. This was worse than expected.
  • Telekom Austria says it is inviting shareholders to an extraordinary general meeting taking place on 20 September 2017.
     
    The telecom firm says Verbund CFO Peter Kollmann is being proposed at the EGM as a potential successor to the supervisory board member Ronny Pecik.
  • North Korea's recent ICBM missile tests are an example of "the dangerous, reckless behaviour of the North that is destabilising the region and beyond", a U.S. disarmament envoy tells the UN, Reuters reports.
     
    The envoy says the U.S. is undeterred in defending against the threat posed by North Korea, and adds that President Trump's top priority remains "protecting the homeland, U.S. territories and our allies against North Korean aggression.
     
    The envoy says North Korea has a choice between "peace, prosperity and international acceptance, or continue further down a path of belligerence, poverty and isolation."
  • Russia's foreign ministry tells Ifax that Russia sees no ground to believe the new U.S. strategy on Afghanistan can bring about significant positive changes.
  • OPEC and non-OPEC compliance with production cuts falls to 94 percent in July from 98 percent, due to high production by Iraq and the Emirates, according to Dow Jones citing sources.
     
     
     
  • U.K. Public Sector Net Borrowing data for July showed a £0.2bn surplus. This was the first July surplus since 2002. 
     
    However, Public Sector Net Debt for July is 87.5% of GDP, 4.5 percentage points higher than last year. 
     
    Here's what a U.K. Treasury spokesperson had to say on the data.
     
    We are making good progress in strengthening our public finances and living within our means. Our national debt, at £65,000 for every U.K. household, is still too high. That is why we have a clear fiscal plan to reduce our debts and build a stronger economy for every household.
  • The German economic sentiment index from the ZEW Institute fell to 10 points in August from 17.5 in July. It was forecast at 15.0 points
     
    ZEW says the economic outlook for Germany remains stable at the current fairly high level, but the significant decrease in sentiment reflects a high degree of nervousness over the future path of growth in the country.
     
    Weaker than expected exports and the emissions scandal in the autos industry have contributed to German nervousness.
  • Toll Brothers reports third quarter earnings per share of 87 cents, beating the IBES view of 69 cents.
     
    The company sees full year revenue between $5.6 to $6 billion. Q3 revenue was $1.5 billion, slightly under estimates of $1.51 billion.
     
    Net profit for the quarter was $148.6 million.
     
    Toll Brothers expects to deliver between 7,000 and 7,300 homes for the full year and expects gross margin to improve in the fourth quarter by 35 to 50 basis poitns.
  • UK CBI reveals the manufacturing order index for August is +13 from +10 in July. This beat expectations of +9.
     
    The manufacturing output expectations balance is +30 in August from +28 in July. This is the highest reading since March, according to the CBI.
  • The ZEW Institute expectations index of German investors morale fell to 10 in August from 17.5 in July. This was worse than the 15 points forecast.
     
    This disappointing reading extend the decline since the previous high of 20.6 set in May, says Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics.
     
    This deterioration is consistent with the relatively poor performance of German and EZ equity indices, both of which have lost momentum since the start of Q2. Seasonality in the next few months is notoriously challenging for equities, but the details of today’s survey shows that investors’ sentiment specifically for German and EZ equity markets rose in August.
     
    Elsewhere, analysts’ inflation expectations also increased, while interest short-term interest rate expectations fell marginally. Across industries—survey only covers Germany—analysts’ sentiment for auto makers plunged in line with ongoing chaos surrounding “diesel gate.” By contrast, sentiment improved significantly for telecoms and utility companies. 
     
    Clause says the ZEW index sends a clear signal of downside risk for the headlines IFO expectations index.
     
     
  • U.S. markets are called to gain at the open of Wall Street trade, according to future values.
     
    The Dow and S&P finished slightly higher yesterday, after two straight sessions of losses. Stocks are still on track for their worst month since October.
     
     
  • Coty reports it is paying a quarterly cash dividend of $0.125 per share, despite a reported loss of 41 cents per share for the fourth quarter.
     
    Quarterly net revenue of $2.241 billion increased 100 as reported compared to legacy-Coty net revenue the prior year period.
  • Mining giant BHP Billiton remains one of the best performing shares on the Stoxx 600 today after its latest earnings report.
     
    The company also announced it was exiting the U.S. onshore oil and gas markets. This was the headline news, according to Nicholas Hyett, equity analyst at Hargreaves Lansdown.
     
    Coming after pressure from activist investor Elliott International to spin off the entire US oil & gas business, the move is likely to be seen as a capitulation by the board, which had previously argued that the division formed a core part of the group’s operations.

    However while that volte face may attract headlines, management’s strategy elsewhere seems to be going smoothly and delivering results. 
     
    The  focus on cost control at BHP’s already very low cost assets, means cash generation is soaring now commodity prices have turned. Net debt is tumbling, and as that falls towards more sustainable levels it will free up cash for other uses. 
     
    Hyett predicts the company will use spare cash to increase capital spending next year, but returns to shareholders should also improve with increased dividends. 
     
    As ever though, that assumes stable commodity prices, and if the last two years have taught us anything it’s the risks of making that kind of assumption.
     
    Shares in the miner are up almost 3 percent today.
     
     
  • Medtronic reports first quarter earnings per share of 74 cents. Revenue for Q1 was $7.39 billion and net income was $1.02 billion.
  • Sterling has briefly dipped below 1.2810 this morning. That mark is an at 8-week low.
     
    The pound is the worst performing major currency of late as the Bank of England switched from being a central bank inclined to raise rates soon to one that is unlikely to move.
     
     
  • It is being reported in several media that the remains of bodies have been found in the hunt for ten missing U.S. sailors.
     
    This follows the collision between the USS John S McCain and an oil tanker off the coast of Singapore.
  • This year, Facebook will entertain fewer teen users in the U.S., according to a new study.
     
    It’s the first time the research company E-Marketer has predicted a fall in Facebook usage for any age group.
     
     
    EMarketer predicts 14.5 million people from the ages of 12 to 17 will use Facebook in 2017, a drop of 3.4 percent from the prior year.
     
    According to the study released Tuesday, Teens are instead busying themselves on Snapchat and Instagram, the photo-sharing app that Facebook owns.
  •  
     
    Mike Bird at WSJ says sterling's decline is hitting record territory.
  • This from CNBC's Rebecca Ungarino: 
     
    As investors await the annual Jackson Hole Economic Policy Symposium scheduled for this Friday in Wyoming, some are watching specifically for remarks from European Central Bank president Mario Draghi as it relates to Euro zone monetary policy.

    "It's more or less a 'meeting of the minds' when it comes to Fed policy," said Chad Morganlander, portfolio manager at Washington Crossing Advisors, adding that typically the Federal Reserve is in focus, but this year Draghi will be the event's most important speaker.
     
    Morganlander is not expecting any substantial signal from Draghi regarding monetary policy and the bank's historically low interest rates and quantitative easing measures, but he will be closely watched.
     
    This outlook is more or less consistent with a report from Reuters last week that detailed two unnamed sources' expectations that Draghi will not deliver a new stance on the state of monetary policy.
     
     
    The full unabridged piece is here.
  • The Philadelphia Fed non-manufacturing business outlook survey has come in at 31.8 in August.
     
    That an improvement from 23.4 in July.
     
    Business activity and new orders increased but the full- time employment component fell.
  • The U.S. Defense Secretary has said he is waiting on a plan from a top U.S. general before deciding on additional troops for Afghanistan.
     
    In short, no decision on troop numbers has been made.
     
    United States Secretary of Defense, James Mattis.
     
  • Gold has been falling as confidence seeps back into the minds of investors.
     
    Here is the session price as at 1:58 p.m. London time.
     
     
    So far this year the price of gold has risen about 11 percent.
  • U.S. home prices rose +0.1 percent in June from May according to the Federal Housing Finance Agency.
     
     
  • The European Commission says it has opened an in-depth investigation into the proposed $66 billion takeover of U.S. seed firm Monsanto by German rival Bayer.
     
    The Commission has preliminary concerns that the proposed acquisition could reduce competition in a number of different markets resulting in higher prices,
    lower quality, less choice, and less innovation.
     - European Commission
     
    In July, the Bayer CEO Werner Baumann said he expected the deal to close by the end of this 2017.
     
    If approved, the deal would be the third largest tie-up in the agrochemicals sector. 
     
    Monsanto shares have risen slightly at the start of U.S. trade.
     
     
    Shares in Bayer also rising on the prospect that a deal may not happen.
     
     
  • This is a healthy open for U.S. stocks.
     
     
  • The Dow Jones industrial average rose 100 points shortly after the open, with Boeing and Apple contributing the most gains. Boeing shares got a lift after the company received a government contract for intercontinental ballistic missile system replacements. The stock also followed other defense companies higher after President Donald Trump's speech on the Afghanistan war.

    The S&P 500 has risen 0.6 percent, with information technology and financials among the best-performing sectors. The two sectors closed slightly lower on Monday.

    The Nasdaq composite also up and also on track to snap a three-day losing streak. Tech stocks have easily outperformed this year, but over the past month have slipped 0.4 percent.
     
  • The Norwegian oil fund grew 2.6 percent in the second quarter.
     

    These stocks drove the world’s largest sovereign wealth fund to its best returns

    CNBCNorway's $975 billion oil fund has been buoyed by equity markets.
  • The United States is targeting Chinese and Russian entities and individuals with new sanctions in a push to pressure North Korea to back off its nuclear ambitions.

    As the isolated regime continues its nuclear and missile tests, the U.S. has sought to use economic pressure from China, Pyongyang's only major ally, to force a change in behavior.
     
    The U.S. Treasury has cited 10 entities and 6 individuals for supporting North Korea's nuclear and missile programs.
     
    Included are Russian nationals, Chinese coals companies and Singapore-based firms.

    Earlier this month, tensions between the U.S. and North Korea ratcheted up after President Donald Trump warned he would respond to threats with "fire and fury." The president and North Korea's state media agency escalated their rhetoric for several days before toning it down since.
     
    Firms targeted include Velmur management, Dandong Rich Earth and Russian firm GeFest-M.
  • In the midst of confusion about what happened, it is pretty important to remember that there were victims.
     

    USS John S. McCain: Remains of missing sailors found

    CNBCNavy and Marine Corps divers on Tuesday located the remains of some of the 10 sailors missing from the USS John S. McCain following its collision with an oil tanker off the Malaysia coast, the Navy said Tuesday.
     
  • European stocks have been in fine fettle today. 
     
     
  • Here are how the main bourses in the U.S. have been performing over the summer months.
     
     
  • On the agenda tomorrow:
     
    Data wise we will have Euro Area Markit PMI data for services and manufacturing. 
     
    Mario Draghi speaks in Germany. That speech expected to start at 08:25 London time. TV will carry it and we will of course be blogging.
     
    French President Emmanuel Macron visits Austria, Romania and Bulgaria from August 23-25, when he will press for better protection for French workers from what they see as unfair labor competition from the EU's poorer states.
     
    The U.S. President Donald Trump speaks at The American Legion National Convention.
     
    And U.S. Secretary of Defense James Mattis continues his Middle East and Europe trip in Turkey, where he meets President Recep Tayyip Erdogan, Minister of National Defense Nurettin Canikli, and Minister of Foreign Affairs Mevlut Cavusoglu to emphasise the 'steadfast commitment' of the U.S. to Turkey as NATO ally and strategic partner.
     
    On the corporate front, WPP will release results and we will hear from CEO Martin Sorrell at about 07:05 a.m. London time.
  •  
    And with European markets closed, that is where we will leave the blog.
     
    Basic resources stocks led the gains on Tuesday on strong metal prices and earnings news. Copper edged towards its highest peak in almost three years in the previous session while zinc hovered near decade-highs. Europe's mining giant,
     
    Antofagasta, surged higher after it reported surging profits in the first half of the year. Its shares were up more than 2 percent in afternoon trade.
     
    Healthcare, too, was higher by more than a percent. Shares in Danish pharmaceutical company Lundbeck rose after announcing plans to increase its share capital, while dental implant firm Straumann continued to benefit from strong results posted last week.
     
    Thank you for joining us today. Be sure to joins us tomorrow. 
     
     
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