World Markets Live - August 24 - CNBC Live Events
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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.K. Q2 GDP is confirmed at 0.3 percent Q/Q. Lee Hopley, chief economist at manufacturers' organisation EEF, says the GDP data tells a familiar story for the U.K. economy.
     
    We’ve got weaker growth – relative to both our performance in the past couple of years and increasingly our developed world counterparts. The most recent three months growth has been almost entirely reliant on spending by households and government, and depending too much on the former looks risky given the continuing squeeze on real incomes. 
     
    She adds that this was another quarter without net trade or business investment making positive contributions to GDP.
     
    (This) doesn’t feel like the most stable of foundations for a post-Brexit economy. While businesses will continue to grapple with Brexit related uncertainty the need for a clear industrial strategy to spur investment and capitalise on growth in world markets is becoming ever clearer.
  • A major impact from Brexit was a weakening of the pound. While some at the time argued that the pound was overvalued and that the depreciation would benefit exporters, the value drop has had a negative impact on consumer spending.
     
    That's according to Ian Stewart, chief economist at Deloitte, in response to this morning’s GDP figures.
     
    The post-referendum drop in the pound has knocked consumer spending and hit growth. U.K. exporters are upbeat, but this has not yet to translate into stronger export volumes. Over the next 18 months the U.K. will likely see subpar growth, but exports and manufacturing can help offset the headwinds from a weaker consumer.
     
    Here's how the pound is trading today. It has recovered from the fall suffered following the release of GDP data.
     
     
     
  • The Canadian Imperial Bank of Commerce reports Q3 adjusted earnings per share of C$2.77. The IBES share view was C$2.66.
     
    The bank reports net income of C$1.1 billion.
  • Russia's Phosagro says Q2 net profit is down 89 percent year on year to 1.5 billion roubles. Adjusted net profit is down 33 percent to 6.1 billion roubles. EBITDA for the second quarter is down 25 percent to 12.2 billion roubles, while sales are down 3 percent to 44.7 billion.
  • The acquisition of Punch Taverns by Dutch brewer Heineken  has completed today. Punch Taverns has applied to the London Stock Exchange to have its shares de-listed from the main market. This is expected to take place at 8 a.m. BST on August 25th.
     
    Heineken's share price is a little lower today.
     
     
  • The latest U.K. GDP data is still in focus. Kallum Pickering, senior U.K. economist at Berenberg, says the dip seen in H1 is not a concern and is probably temporary.
     
    Soft data for industrial production and other export-oriented industries suggest that net-trade will add to growth in the second half of this year. We anticipate real GDP growth of 0.4% qoq in H2 and 1.7% for 2017 overall.  Meanwhile, the outlook for domestic demand – consumption + investment + government spending – remains robust. 
     
    Household spending slowed to 0.1 percent in the second quarter, but Pickering, says this was mainly due to a decline in car sales.
     
    Other measures of household spending such as retail sales (up 1% qoq) remained solid in Q2. Instead of buying fewer goods and services as inflation rises, households are opening up their wallets more in order to target a desired level of real consumption. Household balance sheets have strengthened since the Lehman crisis.
     
    The ratio of debt-to-income is lower, mortgage affordability has improved, wealth has risen and, thanks to cheap oil, households have enjoyed solid real wage gains over the past three years.
     
    Feeling confident after seven years of economic growth, households can borrow more and save less for a while. We expect broadly flat real consumption growth again in Q3 as the real wage squeeze peaks. But as inflation moderates over the medium-term and nominal wage growth accelerates a little, the rate of real consumption growth can pick up again as real wage begin to rise.
     
    The FTSE 100 is doing well today, up 0.3 percent, but is down more than 1 percent over the past 3 months.
     
     
  • The Stoxx 600 is extending gains, up 0.4 percent. It is being led by gains in household goods, insurance and banks. Only the retail and tech sectors are in negative territory.
     
    One of the top performers on the European index is Fiat Chrysler. Shares in the Italian automaker have hit a new all-time high and are extending gains, now up more than 5 percent.
     
     
     
     
     
  • London-listed gambling software development company Playtech reports first half revenue rose to 421.6 million euros versus 333.7 million a year ago. adjusted EBITDA rose to 170.9 million euros from 143.8 million a year ago.
  • Today is Ukraine Independence Day and to celebrate a military parade is taking place in central Kiev.
     
    Among those taking part in the parade are 10 foreign military units, including a British troop.
  • Sears reports a second quarter loss per share of $2.34. The total loss for the quarter was $251 million. Q2 revenue came to $4.4 billion, with same store sales falling 11.5 percent.
     
    The company says the retail environment remains challenging.
  • Here's another look at the U.S. market call. Future points to a higher open for the markets, as investors turn their focus to the Jackson Hole economic symposium which opens today. 
     
     
  • U.K. mortgage approvals by the main high street banks for July came in at 41,587, 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.
     
    Despite this strong piece of data, this is not the start of an upturn in housing market activity, says Samuel Tombs, chief U.K. economist at Pantheon Macroeconomics.
     
    New buyer enquiries fell for the fourth consecutive month in July, according to RICS.  Consumer confidence has fallen sharply over the last two months and the proportion of people believing that now is a good time to buy a house fell in Q2 to its lowest level since Q3 2008, according to the Building Societies Association.
     
    Real wages also look set to fall further and mortgage rates will stabilise soon, leading to a greater shortfall between what buyers can afford and sellers think their houses are worth.
     
    Finally, the Bank of England’s Q2 Credit Conditions Survey showed that a majority of lenders—for the first time in three years—intend to restrict the supply of secured credit over the next three months. Accordingly, we still expect mortgage lending to fall back in the second half of 2017.
     
    Here's a chart from Pantheon showing the new buyer enquiries are consistent with mortgage approvals resuming their downward trend over the coming months.
     
     
  • After posting a loss for the second quarter, Sears announces it will close an additional 28 Kmart stores.
     
    Sales at Kmart decreased 9.4 percent over the quarter. 
     
    Sears has also taken action to further reduce the size of the pension plan. Sears has made a pact with Metlife to annuitize an additional $512 million of pension liabilities. Metlife will pay future pension benefits to about 20,000 retirees.
     
    Sears said store closures and the reduction in the number of pharmacies and consumer electronics all contributed to the overall Q2 sales decline.
     
     
  • Spain's economy minister says he may review GDP forecast for 2017 upwards this year.
     
    This after Q2 GDP was confirmed at 0.9 percent on the quarter and 3.1 percent on the year.
     
    Luis de Guindos adds that the Spanish banking bailout fund has hired an advisor to continue the privatisation of the state-controlled lender Bankia.
     
     
  • Hormel Foods reports Q3 earnings per share of 34 cents. Net income was $182.5 million on sales of $2.21 billion. 
     
    This was under expectations of revenue of $2.24 billion and EPS of 37 cents.
     
    The company says it expects continued earnings pressure from higher input costs for key raw materials. 
  • Ukrainian President Petro Poroshenko says at least 3,000 Russian troops are on Ukrainian soil. 
     
    This as U.S. Defense Secretary Jim Mattis says giving Ukraine defensive weapons is not provocative.
  • Tiffany reports earnings per share of 92 cents in Q2. Sales for the second quarter came to $960 million versus the IBES view of $930.3 million.
     
    Net income was $115 million. The company says growth in fashion and designer jewelry sales contrasted with softness in other jewelry categories. The company sees full year sales up in low-single digits.
  • We're near the mid-day point in European trade and the Stoxx 600 is up nearly half a percent. 
     
    Here's how the major European bourses are doing at this point. Italy is seeing strong gains, with the market up more than 1 percent.
     
     
     
  • U.S. stock index futures pointed to a slightly higher open on Thursday, as investors tried to shake off concerns surrounding the U.S. administration and switched focus to the monetary policy symposium at Jackson Hole.

    Dow Jones industrial average futures rose 30 points, while S&P 500 and Nasdaq 100 futures advanced 2.5 points and 13.75 points, respectively.
     
     
  • Schroders' Chief Economist, Keith Wade outlines his forecast for the global economy: 
     
    The recovery in global activity remains intact while inflation appears to have peaked following the stabilisation in energy costs. We continue to forecast global growth at 3% this year after 2.6% in 2016, but have trimmed our inflation forecast to 2.3% from 2.4%. The combination of steady growth and low inflation means we remain in a Goldilocks environment where activity is neither too hot nor too cold to cause a significant acceleration in inflation.

    On the growth side, the US forecast is unchanged for 2017 while an upgrade to the euro zone is accompanied by a stronger forecast for China and the wider emerging markets. Looking into 2018, global growth is expected to remain stable at 3% with modest downgrades to the US, offset by upgrades to the euro zone and emerging markets.
     
  • As central bankers gather at the annual Jackson Hole symposium on Friday, analysts think the death of a major economic concept could dominate discussions.

    Known as Phillips curve, an economic concept developed by New Zealand economist William Phillips, shows that inflation and unemployment have a stable and inverse relationship.

    However, in the recent months with central banks using artificial ways to pump money into the economy, this inverse relationship is seen to be dying.
     

    At Jackson Hole, the death of this major economic model may concern central bankers

    CNBCAs central bankers gather at the annual Jackson Hole symposium on Friday, analysts think the death of a major economic concept could dominate discussions.
  • The Indian government has suffered a huge setback after a landmark Supreme Court ruling found that citizens have a fundamental right to privacy, posing a risk for Prime Minister Narendra Modi's biometric payment scheme.

    The highest court in the country voted unanimously Thursday that privacy is an "intrinsic" part of Article 21 of the Indian constitution, which governs the life and liberties of Indian citizens.

    The verdict, which overturns a 55-year-old ruling stating that privacy was not a human right, has been heralded as a victory for human rights but it deals a major blow to Modi's wide-reaching biometric ID program.
  • Let's take a look at sterling that is trading slightly higher against the dollar, holding on to $1.28 levels as investors eye Brexit talks next week:
     
     
  • Check out which companies are making headlines before the bell:
     
    Tiffany – The luxury goods retailer earned 92 cents per share for the second quarter, six cents a share above estimates. Revenue also beat forecasts, but comparable-store sales fell one percent compared to forecasts for a 0.2 percent drop.

    Dollar Tree – The discount retailer reported quarterly profit of 98 cents per share, 11 cents a share above estimates. Revenue was also above forecasts, and same-store sales increased a better-than-expected 3.9 percent. Dollar Tree was helped by lower costs and fewer promotions.
     
    Hormel – The maker of Spam, Dinty Moore, and other food brands fell three cents a share short of estimates, with quarterly profit of 34 cents per share. Revenue also missed forecasts and the company cut its full-year forecast due to high commodity price volatility.
     
    Teva Pharmaceutical – Credit Suisse downgraded the drugmaker's stock to "underperform" from "neutral," saying pricing pressure and more intense U.S. generic competition would continue to be headwinds for the foreseeable future.
     
    Guess – Guess nearly doubled analyst estimates with adjusted quarterly profit of 19 cents per share. The Street had forecast the clothing retailer's profit to come in at 10 cents per share.
     
    Ford – Ford appointed Jason Luo as the new head of its China operations. Luo had been Chief Executive Officer of auto parts maker Key Safety Systems.

    Amazon.com – Amazon's deal to buy Whole Foods Market won Federal Trade Commission clearance, just a few hours after Whole Foods shareholders approved the deal.
     
    General Electric – GE has resumed talks to sell its industrial solutions unit to Switzerland engineering company ABB, according to a Reuters report. Reuters said the talks resumed after GE scaled back its expectations of the unit's value in a deal.
     
    Click here for a full list of companies.
  • Trump says in Twitter message he has asked Senate and House Republican leaders to tie debt ceiling legislation to veterans affairs bill. 
     
  • US weekly jobless claims total 234,000 vs 238,000 estimate
     

    US weekly jobless claims total 234,000 vs 238,000 estimate

    CNBCFirst-time claims for benefits were expected to total 238,000 in the most recent week, up slightly from the 232,000 claims reported for the previous week.
  • Saudi Arabia to allow foreign investors to take 100 percent ownership of companies in health, education sectors. That's according to the Saudi Investment Authority Chief.
  • Russian Foreign Minister Lavrov says Washington's bet on using force in its new strategy for Afghanistan is dead end. That's according to Reuters.
  • Oil prices slipped on Thursday, giving up some recent gains as the dollar strengthened ahead of a meeting of central bankers in Jackson Hole, Wyoming, which could signal changes to monetary policy.

    Benchmark Brent crude LCOc1 was down 20 cents a barrel at $52.37 by 1120 GMT. U.S. light, sweet crude CLc1 was 20 cents lower at $48.21 a barrel.

    The annual meeting at Jackson Hole starts on Thursday and will include speeches by U.S. Federal Reserve Chair Janet Yellen and European Central Bank chief Mario Draghi on the outlook for monetary policy and interest rates.
     
     
  • President Donald Trump is on Twitter criticising former director of national intelligence James Clapper.
     
    This after Clapper expressed his concerns to CNN about the president's ability to lead the country.
  • The U.S. Navy identifies 1 dead and 9 missing USS John S. McCain sailors as search and rescue efforts are suspended.
     
    The USS John S. McCain collided with a merchant ship recently. It is the fourth incident involving a U.S. warship in the Southeast Asian sea. The commander of the 7th fleet was relieved of command yesterday because of the mishap.
  • U.S. markets are now open for trade. The major indexes fell between 0.3 and 0.4 percent yesterday. They are starting today's session off to the upside.
     
     
  • The Nasdaq is on pace for its first weekly gain after several losing weeks.
     
    Here are the stocks at the top and bottom of the index at the start of trade.
     
    Dollar Tree is the biggest gainer after reporting better than expected earnings. 
     
     
     
     
  • The S&P and Dow Jones are on track to break a two-week losing streak today. Here are the winners and losers on the S&P 500.
     
    At the top of the S&P 500 is Signet Jewelers, which reported upbeat earnings. EPS for the second quarter was $1.33, beating the IBES estimate of $1.04. Same stores sales increased 1.4 percent and sales came to $1.4 billion.
     
    Signet also anounced plans to acquire R2Net to accelerate its "customer-first omnichannel strategy" in a deal worth $328 million.
     
     
     
  •  

    Stocks rise on retail stock comeback, bullish Fed talk

    CNBCStocks opened higher ahead of an annual meeting of central bankers that may offer insight into monetary policy for the rest of the year.
  • U.S. jobless claims came in at 234,000 from 232,000, below the consensus expectation of 238,000.
     
    Two weeks of below 240,000 is not enough to signal a decline in the trend which has been in the low 240,000s since March, says Ian Shepherdson, chief economist at Pantheon Macroeconomics.
     
    The numbers are volatile in the short term, and we'd need to see claims running below 240K consistently for a couple of months before believing the trend really has shifted down. Our take on the seasonals suggests claims will rebound back above 240,000 in early September.
     
    That said, firms are finding it increasingly hard to find people to hire, and that has raised the bar for layoffs. Sustained new lows for claims, then, can't be ruled out.
  • Dow Jones is reporting that Fiat and VW are in very early stages of talks on joint production of light utility vehicles. The talks focus on Caddy and Amarok models and do not go beyond light utility vehicles. That's according to Dow Jones citing sources.
  • President Donald Trump said on Thursday congressional leaders could have avoided a legislative "mess" if they had heeded his advice on raising the U.S. debt ceiling, renewing criticism of fellow Republicans whose support he needs to advance his policy agenda.

    Trump said he had advised Senate Majority Leader Mitch McConnell and House of Representatives Speaker Paul Ryan to link passage of legislation raising the debt ceiling to a measure on veterans affairs that he signed on Aug. 12.

    I requested that Mitch M & Paul R tie the Debt Ceiling legislation into the popular V.A. Bill (which just passed) for easy approval, Trump said a in Twitter post.

    They ... didn't do it so now we have a big deal with Dems holding them up (as usual) on Debt Ceiling approval. Could have been so easy-now a mess! he added, referring to Democrats.
  • Thirty minutes to Europe close and stocks look like this:
     
     
     
     
  • European markets are now closed for trading. The pan-European Stoxx 600 has closed slightly higher:
     
     
  • Major indexes have also closed for trading looking like this:
     
     
  • And that's all from us here at World Markets Live. Join us from 0600 London time tomorrow for more.
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