World Markets Live - August 24 - CNBC Live Events
×

CNBC Live Events

World Markets Live - August 24

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

  • U.S. Defense Secretary Jim Mattis says Russia is "seeking to redraw international borders by force," according to Reuters.
     
    Speaking in Kiev, Mattis says Russia is not adhering to international commitments such as the Minsk Agreement. 
     
    He says the U.S. it committed to building the capacity of Ukrain's armed forces and to diplomatic efforts to resolve conflict in eastern Ukraine.
     
    Ukrainian President Petro Poroshenko, left, with Jim Mattis
     
    Meantime, the president of Ukraine says he has discussed the possibility of a UN-mandated mission to eastern Donbass and the possibility of U.S. military support with Mattis.
     
    Poroshenko says he is satisfied by progress on the issue of the U.S. giving lethal weapons to Ukraine. Jim mattis says he is reviewing sending lethal weapons to the country and will inform President Trump of his position.
  • Welcome to World Markets Live coming straight out of London.
     
    We will get going properly in a minute but here are the overnight headlines for now:
     
    • Republican leaders on Capitol Hill reject President Trump's threat he could shut down the government. House Speaker Paul Ryan says the extreme measure is not needed to force Congress into approving a border wall with Mexico. 
     
    • A greenlight for fresh food. Amazon gets regulatory and shareholder approval for its takeover of Whole Foods, clearing the way for a deal that has already sent shudders through the 700 billion dollar US grocery market.
     
    • Lufthansa reportedly submits a letter of interest for ailing Air Berlin's Niki unit, as the German carrier looks to expand its Spain routes. 
     
    • Uber's surge fare. The company reports a $645 million loss in the second quarter as the search for a new CEO goes on.
       
  • President Trump sparked criticism from fellow Republicans after declaring he'd be willing to shut down the government in order to build a border wall with Mexico.
     
     
    Congress has until around the end of September to make a debt ceiling deal that will keep the federal government going.
     
    House Speaker Paul Ryan said he is in agreement with the president over the need for a border wall. But he did warn that a government shutdown would be both unpopular and unnecessary. 
     
    I don't think a government shutdown is necessary and I don't think most people want to see a government shutdown. Ourselves included.
    Additionally the Republican chairman of a House Appropriations subcommittee, Tom Cole of Oklahoma, reportedly said Trump's move could backfire.
     
    When you control the presidency, the Senate and the House you're shutting down the government you are running. I don't think it's smart politically and I don't think it would succeed practically.
  • U.S. markets paired their gains from Tuesday, on some of the lowest volume in more than a month.  
     
    The Dow and S&P both broke 2-day win streaks, while the NASDAQ and Russell 2000 both saw their 4th negative session in 5.  
     
    How U.S. markets closed on Wednesday night.
     
    All 4 major indices are now negative month-to-date with the S&P, NASDAQ, and Russell all on pace for their worst month since Oct, 2016.  
     
    The Asian markets haven't taken the lead from the U.S. session. Current selling on the Japanese Nikkei is ascribed to a stronger yen versus the dollar. 
     
     
  • It is a long way off but you might want to tune into this interview later tonight. That is 6:15 p.m. London time.
     
     
  • The 'Meeting of the Minds' kicks off in Jackson Hole, Wyoming, today as the world's top central bankers gather in the mountain town for the annual Kansas City Federal Reserve Bank's Economic Symposium.
     
    Janet Yellen is preparing for what could be her final Jackson Hole as Fed Chair, as she seeks to address growing worries over financial stability, with Fed-watchers hoping she will unveil a plan for the central bank to unwind its balance sheet.
     
    Draghi and Yellen meet at Jackson Hole in 2014.
     
    While investors are not expecting any substantial shifts in monetary policy to be announced by the Fed or the European Central Bank, many are also keeping a close eye on ECB President Mario Draghi's speech, where he could offer clues as to when the bank will begin to taper.
     
    This after he delivered more dovish comments to a gathering of economic Nobel Laureates. Speaking in Lindau, he touted the success of the asset purchase program, while acknowledging "gaps in our knowledge" around quantitative easing. 
     
  • So what do we have on the agenda in Europe this morning?
     
    In the corporate space, Premier Oil and PhosAgro are due to report.
     
    The German airline Lufthansa has confirmed that it wants to take over some parts of the insolvent Air Berlin. 
     
    In terms of data, there will be GDP figures coming out from Norway at 7 a.m. and Russia at 1 p.m. London time. French business confidence numbers will be released at 7.45 a.m. London time.
     
    Lufthansa says it is looking for some parts of ailing Air Berlin.
     
    In equity markets, the FTSE 100 is called up by 10 points at 7,392; the DAX is seen higher by 8 points at 12,182 and the CAC is set to open up by 3 points at 5,118.
  • Uber has posted a 16 percent rise in second quarter bookings.
     
    The ride-hailing company also saw a smaller loss than in the previous period, as it attempts to inch toward profitability. Results show it lost $645 million, down 9 percent from the first quarter as it sought to clamp down on excessive spending.
     
    For all of 2016, it has lost around $3 billion.
     
    Meg Whitman, Chief Executive of Hewlett Packard Enterprise has repeated that she will not become the next CEO of Uber. Speaking to the Wall Street Journal, Ms Whitman said nothing had changed since she posted a series of tweets on July 27. 
     
     
  • The Norwegian crown has strengthened against the euro after growth figures showed a +1.1 percent rises in quarterly GDP.
     
    Non-oil GDP came in at +0.7 percent, just edging above a +0.6 percent Reuters poll forecast.
     
     
  • A reminder of our top news stories this morning:
     
    • Republican leaders on Capitol Hill reject President Trump's threat he could shut down the government. House Speaker Paul Ryan says the extreme measure is not needed to force Congress into approving a border wall with Mexico. 
     
    • A greenlight for fresh food. Amazon gets regulatory and shareholder approval for its takeover of Whole Foods, clearing the way for a deal that has already sent shudders through the 700 billion dollar US grocery market.
     
    • Airline assets! Lufthansa reportedly submits a letter of interest for ailing Air Berlin's Niki unit, as the German carrier looks to expand its Spanish routes. 
     
    • Uber's surge fare. The company reports a $645 million loss in the second quarter as the search for a new CEO goes on.
  • More than half of big corporations are considering adopting Blockchain technology, according to a study by Juniper Research.
     
    On set is Antony Jenkins, CEO of fintech startup 10x. Jenkins was former group chief executive of Barclays.
     
    Antony Jenkins says every sector is being transformed by Blockchain.
     
    Jenkins says Blockchain, or distributed ledger technology, has got past the stage where big banks had hoped it would go away and they are now experimenting heavily.
     
    What is driving this is vast amounts of very cheap computing power that allows you to run complex cryptographic algorithms that allow you to underpin both crypto-currencies and distributive ledger technologies.
     
    Jenkins argues that as these season you will see the development of a new asset class (crypto-currencies) but also streamline the way money is moved.
     
    In time you could see a mortgage being granted in ten minutes, a line of credit in two minutes.
     
  • Dutch police have made a second arrest in the south of the Netherlands in connection to a threatened attack on a Rotterdam concert, according to Dutch news broadcasters.
     
    The country's authorities arrested a Spanish man last night who was driving a van filled with gas canisters near a Rotterdam venue.
     
    A rock concert at the venue was cancelled after Spanish police tipped the authorities off to a potential attack. The incident is unrelated to the attacks in Catalonia last week.
  • French August industrial confidence rises to 111 from 108 in July and beating the forecast of 108, according to INSEE.
     
    Service sector confidence rises to 106 from 104, and the composite business confidence rises to 109 (the highest since April 2011) from 108 in July. 
     
    The manufacturing industry survey also showed businesses plan to boost investment by 7 percent in 2017, up from the previous forecast of 6 percent. 
  • European markets are now open for Thursday trade
     
     
    The pan-European Stoxx 600 finished Wednesday's session down 0.5 percent. At the start of today, the index is moving to the upside.
     
     
  • All sectors of the Stoxx 600 are in the green at the start of the session. Construction is the biggest gainer so far.
     
     
     
  • The final figure for second quarter Spanish GDP has come in un-revised at +0.9 percent quarter-on-quarter. 
     
    The year-on-year reading is +3.1 percent. Again un-revised from the preliminary figure.
  • The positive start to the Stoxx 600 is spread both across sector and geography, with all the major European markets moving higher.
     
     
     
  • Dixons shares have fallen sharply.
     
    Dixons Carphone has cut its full-year forecasts, citing challenging conditions in the mobile market. The British retailer said currency fluctuations had made new devices more expensive and customers were holding on to handsets for longer. 
     
    Dixons Carphone now expects headline pretax profit for the year in the range of £360 million to 440 million -- below analyst forecasts of £495 million.
     
     
  • These are some of the stocks in the news this morning:
     
    • Novartis has received European Union approval for its breast cancer drug Kisqali. While expected, the announcement has boosted the Swiss drugmaker's oncology portfolio as well as it's challenge to U.S. rival Pfizer. Novartis believes the drug could potentially provide billions of dollars in revenues.
    • Roche has been granted a priority review by the U.S. Food and Drug Administration for its haemophilia drug. A priority review is a mechanism which expedites the review process for drugs that could potentially have a big impact on a disease. A decision from the FDA is expected by February 23.
     
     
    • Results from a clinical trial have shown that Astrazeneca's blood-thinner Brilinta reduces cardiovascular mortality risks by 29 percent in patients with a history of heart problems. The promising findings of Astrazeneca's key drug will be presented next week for further scrutiny.
    • Shares of Fiat have hit an all time high, on the back of further speculation that Great Wall Motors could be eyeing a bid for Jeep.
  • The 'Meeting of the Minds' kicks off in Jackson Hole, Wyoming, today as the world's top central bankers gather in the mountain town for the annual Kansas City Federal Reserve Bank's Economic Symposium.
     
    While investors are not expecting any substantial shifts in monetary policy to be announced by the Fed or the European Central Bank, many are also keeping a close eye on ECB President Mario Draghi's speech, where he could offer clues as to when the bank will begin to taper.
     
    From Zurich, Christian Gattiker, Head of Research & Investment Solutions at Julius Baer, says Draghi will be happy with the performance of economies such as Spain.
     
    He further argues that the ECB plan will be to allow German assets to reflate, which will in turn allow other countries within the euro zone to catch up.
     
    However Gattiker says euro strength will hurt equity markets at some stage and he expects Draghi and his team to talk down the currency.
     
    At soon as it goes across 1.20, European equities will feel that in 2018.
     
     
  • A court has ordered Russian conglomerate Sistema to pay over $2 billion in damages to Rosneft. This after the oil major filed a lawsuit against Sistema over the acquisition of oil company Bashneft.
     
     Rosneft gas station in Moscow
  • Swiss industrial orders rise 2.8 percent year on year in Q2.
     
    The first quarter figure is revised to minus 4.2 percent year on year from minus 4.6 percent.
  • The dollar comes off session highs against the Swiss franc after data showed an improvement in Switzerland's industrial orders. However, the dollar remains up against the Swiss franc.
     
     
  •  
    Looking at the EU approval rate it is at an all time high. It is at 80 percent and the government  will not want to stop the party.
     
    Christian Gattiker, Head of Research & Investment Solutions at Julius Baer says a boost in younger people in Germany is causing stress in real estate and other sectors but so far, people consider the economy to be traveling in the right direction.
     
     
  • These are the top headlines following the market open:
     
    • Tough call! Trading is briefly halted after shares in Dixons Carphone take a dive.This after the retailer issues a profit warning, on the back of a difficult environment for the UK mobile market.
    • Republican leaders on Capitol Hill reject President Trump's threat he could shut down the government. House Speaker Paul Ryan says the extreme measure is not needed to force Congress into approving a border wall with Mexico.
    • Airline assets! Lufthansa reportedly submits a letter of interest for ailing Air Berlin's Niki unit, as the German carrier looks to expand its Spanish routes.
    • A greenlight for fresh food. Amazon gets regulatory and shareholder approval for its takeover of Whole Foods, clearing the way for a deal that has already sent shudders through the 700 billion dollar US grocery market.
  • Sweden's seasonally adjusted unemployment rate for July was 7.1 percent, according to the statistics office.
     
    Swedish unemployment was 6.6 percent in July, or 362,000 people, versus the 5.9 percent expected.
     
    Total employment in the country is 5.164 million people.
  • Half an hour into Thursday trade and the Stoxx 600 is up 0.2 percent.
     
    These are the biggest winners and losers on the index so far today. Swiss firm Sunrise is at the top of the index after posting net income which doubled to 27 million Swiss francs in the second quarter.
     
     
    Dixons Carphone shares are down sharply after cutting its full-year forecasts, citing challenging conditions in the mobile market, and warning that currency movements were making new devices more expensive, discouraging U.K. consumers.
     
     
     
  • U.S. stock markets are called to open slightly higher later today, according to future values. This after the markets fell yesterday, down between 0.3 and 0.4 percent. U.S. stock markets are on track for their worst month since October.
     
     
  • British Prime Minister Theresa May has apologized after the Home Office sent nearly 100 letters to EU nationals in the UK ordering them to leave the country or face deportation.
     
    May described the incident as an "unfortunate error."
     
    The story went viral after a Finnish academic posted the contents of the letter she received on Facebook:
     
     
  • The Bitcoin rally has gathered steam, once again trading above the $4,000 mark. The crypto-currency has been one of the best-performing asset classes of 2017, with its value more than quadrupling year-to-date. 
     
    Dr. Arthur Vayloyan is executive board member of Falcon Private Bank, which now offers clients a crypto asset management solution and even has a bitcoin ATM in its lobby.
     
    He says there is demand from high-net worth clients and also institutional investors for crypto assets. He adds the invention of bitcoin represents “the internet of money”.
     
    Naturally, people are interested to participate in that innovation. A problem is if you are interested, there are some fundamental technological barriers to entry and our role is to facilitate your entry into that space if you would like to invest.
     
     
  • These are the top headlines for the hour:
     
    • Tough call! Trading is briefly halted after shares in Dixons Carphone plunge.This after the retailer issues a profit warning, on the back of a difficult environment for the UK mobile market.
    • Republican leaders on Capitol Hill reject President Trump's threat he could shut down the government. House Speaker Paul Ryan says the extreme measure is not needed to force Congress into approving a border wall with Mexico.
    • Airline assets! Lufthansa reportedly submits a letter of interest for ailing Air Berlin's Niki unit, as the German carrier looks to expand its Spanish routes.
  • Poland's unemployment rate falls to 5 percent in Q2 from 5.2 percent in Q1, according the statistics office. 
  • The office for Switzerland's attorney general says they have filed an indictment in the federal criminal court against a 30-year-old woman from the Zurich area who is suspected of "Jihadi travelling" according to Reuters reports.
  • The next joint committee meeting of OPEC and non-OPEC producers will be held in Vienna on September 22, according to an OPEC statement.
     
    The statement says that all options, including extending supply cuts beyond the first quarter of 2018, are left open to ensure market rebalance.
     
    Oil prices are lower today.
     
     
  • Ben Ritchie, head of European equities at Aberdeen Standard Investments, recommends the health care sector to investors.
     
    We like the long term dynamics in health care: it’s acyclical; there should be above GDP spending in that area over the long term; and it’s also a sector that is global and has faster growing areas in China and other emerging markets to tap into.
     
    Ritchie said they were a little worried on traditional drug makers, which are facing price and patent pressures.
  • The 'Meeting of the Minds' kicks off in Jackson Hole, Wyoming, today as the world's top central bankers gather in the mountain town for the annual Kansas City Federal Reserve Bank's Economic Symposium.
     
    Janet Yellen is preparing for what could be her final Jackson Hole as Fed Chair, as she seeks to address growing worries over financial stability, with Fed-watchers hoping she will unveil a plan for the central bank to unwind its balance sheet. 
     
    Yellen and Draghi at Jackson Hole in 2014
     
    While investors are not expecting any substantial shifts in monetary policy to be announced by the Fed or the European Central Bank, many are also keeping a close eye on ECB President Mario Draghi's speech, where he could offer clues as to when the bank will begin to taper.
     
    This after he delivered more dovish comments to a gathering of economic Nobel Laureates. Speaking in Lindau, he touted the success of the asset purchase programme, while acknowledging QUOTE "gaps in our knowledge" around quantitative easing. 
  • Here's a round-up of the latest deal news from around the world:
     
    • Amazon has won U.S. regulatory and shareholder approval for its takeover of Whole Foods, clearing two of the biggest hurdles it needed to close its $13.7 billion acquisition. The U.S. Federal Trade Commission said it decided not to pursue its investigation into the proposed merger further, a few hours after Whole Foods shareholders voted to back the deal. The two companies expect to finalise the agreement before the end of the year.
    • Google and Walmart are teaming up to take on Amazon. The partnership will allow Walmart shoppers to do their shopping via the Google Home virtual assistant. 
    • General Electric and ABB have reportedly resumed talks over an industrial solutions deal. According to Reuters, GE is exploring the possibility of selling the unit for just over $2 billion - resurrecting negotiations that ended last month over price disagreements. The move comes as new CEO John Flannery carries out a review of the company's portfolio.
    • Lufthansa has confirmed it wants to take over parts of Air Berlin. Details of the submitted proposal have not been disclosed, but Reuters reports that the German flagship carrier is interested in Air Berlin's Niki unit as well as other parts of the insolvent airline.
  • The White House is reportedly considering a ban on trading Venezuelan debt. This would be the latest in a series of sanctions against President Nicolas Maduro's government, following the country's disputed election last month. 

    Venezuela's bond prices fell on the report, with the benchmark state-run oil company PDVSA's 2037 bond touching a low not seen in 18 months.
  • U.K. Q2 GDP is confirmed at 0.3 percent quarter over quarter and 1.7 percent year on year, matching the preliminary reading.
     
    Business investment is flat for Q2, at its weakest since Q4 2016.
     
    Household spending is up 0.1 percent in the second quarter, at its weakest since Q4 2014.
     
    Net trade contributed zero to Q2 GDP growth.
     
    June services output rose 0.4 percent month on month, the biggest rise since August 2016. 
  • U.K. mortgage approvals for July has come in at 41,587, which is a decent clip higher than the Reuters poll forecast of 40,200.
     
    It marks a 9 percent year-on-year rise and jumps a up from 40,385 recorded in June.
     
     
  • Net migration to the U.K. is down 81,000 to 246,000 in the year to March 2017, according to official data. This is the the first set of immigration data to be released since the 8 June general election.
     
    The last batch of figures, released in May, showed an 84,000 drop in net migration to a total of 248,000 in 2016 - the lowest level for almost three years. This was attributed by many to the 'Brexit effect' - namely a surge in the number of Polish people and other Europeans leaving the U.K. after the June 2016 referendum.
     
     
     
     
  • The pound has slumped against the dollar and pared gains against the euro after latest U.K. economic data shows household spending grew at its slowest pace since Q4 2014.
     
     
  • The U.K.'s FTSE 100 hits session highs after GDP is confirmed at 0.3 quarter on quarter for Q2. The weaker sterling is also helping to propr up shares, as many of the bluechip components make their earnings overseas.
     
     
  • U.K. gilt yields have ticked up by 1 basis point along the curve after the latest release of U.K. GDP, investment and spending data.
     
     
  • The U.K.'s economic slowdown shows sterling's depreciation is doing more harm than good, according to Samuel Tombs, chief U.K. economist at Pantheon Macroeconomics.
     
    The GDP figures show that the U.K. economy has been the slowest growing G7 economy this year because Brexit risk has dampened business investment and sterling’s depreciation has hurt consumers more than it has helped exporters.
     
    Households’ real spending increased by 0.1 percent quarter-on-quarter in Q2 — the smallest rise since Q4 2014 and well below 2016’s 0.75% average — indicating that the pickup in retail sales was offset by a sharp fall in car sales and slower growth in services spending.
     
    Net trade also made a neutral contribution to GDP growth. This means that net trade still has dragged on GDP growth since sterling first began to depreciate at the end of 2015; by contrast, it had boosted GDP growth at the same stage after all other past post-war depreciations.
     
    Tombs predicts the fall in consumer confidence means household will not cut their savings rate, and says he expects Brexit risk to increasingly place downward pressure on business investment.
  • Tropical storm Harvey is set to roar ashore, threatening the the Texas and Louisiana coasts, right in the heart of America's oil refining business.
     
    Forecasters expect Harvey to reach hurricane strength soon, bringing powerful wind and rain. About a third of U.S. refinery capacity is in the expected path of the storm.
     
    The NHC says the storm is about 370 miles, or 600 kms, southeast of Port Mansfield in Texas and is producing winds of 45 miles per hour. A few hours ago it was 410 miles away.
     
    A hurricane warning has been issued from Port Mansfield to Matagorda.
Powered by ScribbleLive Content Marketing Software Platform