World Markets Live - August 2 - CNBC Live Events
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World Markets Live - August 2

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

  • It is too early to see how new sanctions will impact Russia. That's according to SocGen’s deputy CEO Severin Cabannes. 
     
    He says the sanctions will increase complexity.
     
     
  • Rio Tinto shares fell into the red in today's session. That's despite raising its dividend and buyback plans. The miner said it will now return 3 billion dollars to shareholders by the end of the year. This as first half net profit jumped, despite wet weather impacting iron ore and coal production.
     
    The share price is down almost 2 percent this morning.
     
    Reuters reports that the market is disappointed with the Rio numbers. Investment group Shore Capital says it would have preferred a higher dividend payout instead of an increased share buyback, and said the H1 revenue was behind what they'd hoped for given stronger commodity prices, according to Reuters.
     
    Rio Tinto's Iron Ore Parker Point loading facility 
  • Standard Chartered reports underlying income of $7.2 billion, up 6 percent year on year. First half earnings per share is 29.2 cents. Underlying expenses was up 5 percent to $4.8 billion. Net profit was $1.2 billion.
     
    The bank says it is on track to deliver an additional $700 million in cost efficiencies this year and $400 million next year.
     
    The board has decided not to declare an interim dividend.
     
  • Football star Neymar has been given permission to leave Barcelona as he looks set to join Paris St-Germain in a reported 222 million euro deal, according to a BBC report.
     
    His current team, Barcelona, confirmed on Twitter that he is not training with the rest of his teammates.
  • U.K. July construction PMI fell to 51.9 points from 54.8 in June. That's an 11-month low. It was expected to dip to 54.5 points.
  • The White House is defending President Trump's intervention in a statement his son Donald Junior issued last month about his 2016 meeting with a Russian lawyer. 
     
    Meanwhile, U.S. Secretary of State Rex Tillerson (pictured) says Washington is open to talks with North Korea. Tillerson stayed firm on its stance against nuclear weapons, but offered a reassuring message.
     
     
    Also, President Trump is close to taking trade action against China. According to a senior White House official, Trump could encourage U.S. Trade Representative Robert Lighthizer, to launch an investigation into what he sees as China's unfair trade practices. Opening such a probe would allow the president to unilaterally impose tariffs or other restrictions to protect U.S. industries. An announcement could come as early as this week.
  • Germany has agreed to a plan to cut diesel emissions, according to Reuters. The report, citing industry and government sources, said the government would not seek to impose costly changes to diesel engines, but instead will allow for German carmakers to implement software updates for around two million vehicles.
     
    The news comes ahead of a summit gathering politicians and industry executives in Berlin to focus on solutions for cutting pollution in German cities.
     
    Shares in major German car makers are falling today.
     
     
  • Standard Chartered shares slump more than 1 percent after reporting its first half earnings. The emerging markets bank has decided not to pay an interim dividend and revealed restructuring charges of $165 million in the first half.
     
    The bank's share price fell as much as 5 percent after the result. They are currently down around 4 percent.
     
     
    The bank did says it is now more efficient, better at managing risk and its balance sheet quality has improved. Loan impairment fell 47 percent year on year to $583 million.
  • The Reserve Bank of India cuts its lending rate by 25 basis points to 6 percent. The reverse repo rate is cut to 5.75 percent. The last rate cut was in October.
     
    The central bank has lowered rates as inflation concerns eased. Economists had predicted a 25 basis point cut.
  • Euro zone producer prices in June fell 0.1 percent month on month and rose 2.5 percent year on year, according to Eurostat.
     
    The results were forecast at -0.1 and 2.4 percent respectively.
     
    Excluding energy, the PPI was unchanged month on month and rose 2.5 percent year on year.
  • India's central bank has cut its lending rate to 6 percent. The central bank says it lowered the rate on easing inflation concerns.
     
    The central bank says it will monitor inflation movements to decide if the recent soft inflation reasing are transient or if durable disinflation is on the way. The central bank says some of the upside risks to inflation have either reduced or not materialised. The central bank remains committed to its target of 4 percent headline inflation.
     
    The Indian rupee gained against the dollar on the rate decision. It is up about 0.5 percent against the dollar today.
     
     
  • The pan-European Stoxx 600 is negative, down around 0.2 percent. The basic resources and banking sectors are weighing most on the index, as markets reacted negatively to earnings from Rio Tinto, Standard Chartered, SocGen, ING and Commerzbank.
     
    The banks Standard Chartered and SocGen are near the bottom of the Stoxx 600. Scout24 is the worst performer after JP Morgan downgraded the stock, cutting its rating from overweight to neutral and its target price from 37 euros to 34 euros.
     
     
    The banking sector of the Stoxx 600 is down almost 1 percent today.
     
     
  • Ferrari reports its Q2 results, which show EBITDA and revenue missing estimates. Revenue for the second quarter was 920 million euros, versus expectactions of 921 million. The luxury car maker confirmed its full year guidance.
     
    Ferrari shares extend losses on the earnings miss.
     
     
  • Germany's new car registrations for July are up 1.5 percent on the year, according to German vehicle authority KBA. 283,080 vehicles were registered.
     
    KBA says sales of diesel cars fell 12.7 percent in Germany in July.
     
    This comes ahead of the "National Diesel Forum" in Berlin. Germany's transport and environment ministers have invited car executives of Volkswagen, Porsche, Audi, Mercedes, BMW, Opel, Ford, as well as representatives from several ministries and federal states to discuss how to cut pollutant emissions in Diesel cars nationwide
  • Severak earnings released at the hour:
     
    KBR reports Q2 revenue of $1.09 billion and net income of $77 million. The company sees full year earnings per share of $1.25 to $1.45.
     
    Orbotech reports revenue of $210.7 million, beating estimates of $205.6 million. The company expects revenue for the second half of the year in the range of $460 million to $480 million.
     
    Generac reports net income of $25.7 million in Q2 on sales of $395.4 million, which beat estimates of $383.4 million. The company says full year net sales are expected to increased between 6 to 8 percent compared to the previous year.
  • Bunge reports earnings per share of 51 cents, net income of $81 million and sales of $11.65 billion in the second quarter.
     
    Net sales rose from $10.541 billion the prior year.
     
    The company says it expects a significant improvement in the second half. It says weak global margins and slower than expected selling in South America led to a "challenging" quarter in its agribusiness.
  • Apple shares are in focus today. The stocks are trading up 6 percent to record highs in premarket trade.
     
    This after the tech giant posted its latest earnings yesterday. The California company saw its net income rise compared to the previous year, while revenues beat estimates. Better than expected iPhone performance helped Apple's results, with sales rising 1.6 percent to just over 41 million units. But lower average selling prices caused revenues from the device to miss estimates.
     
     
    This share price rise looks set to boost the Nasdaq at the open today. Market futures predict the Nasdaq to gain 43 points at the open.
     
    The Dow is also called higher, up around 45 points, while the S&P is called broadly flat.
     
     
     
  • The FTSE 100 is falling today, weighed by a retreat in the mining and basic resources sector. Major components of the U.K.'s bluechip index, including Rio Tinto and emerging markets bank Standard Chartered, fell after reporting their latest earnings.
     
     
  • U.K. construction PMI for July fell to 51.9 points from 54.8 in June, hitting an 11-month low and missing expectations of a dip to 54.5 points.
     
    Samuel Tombs, chief U.K. economist at Pantheon Macroeconomics, says Brexit uncertainty is depressing commercial construction.
     
    The decline in the PMI primarily reflected a big drop in the commercial activity index to 47.6—its lowest level since immediately after the referendum—from 52.2 in June. Commercial clients reportedly delayed decisions due to worries about the economic outlook and elevated political uncertainty.
     
    Meanwhile, the housing activity balance moderated to 54.4, from 57.0, perhaps reflecting some caution among house-builders in response to the recent decline in market-wide buyer demand. 
     
    Tombs says shortages of raw materials are also holding back construction projects.
     
    These supply chain issues should be remedied in time. Housebuilding also should continue to grow moderately, supported by the Help to Buy Scheme and shortages of existing homes for sale.
     
    Nonetheless, the adverse impact of Brexit uncertainty on commercial work likely will grow if, as we expect, exit talks progress slowly.
  • Standard Chartered shares remain sharply lower today after posting its latest results. The share price fell as far as 5 percent earlier in the session.
     

    Credit Suisse says the bank's Q2 results were in line with expectations but are not good enough, with higher costs and mixed revenue.
     
    Transaction Banking was stronger, driven by Cash Management. This was offset by weak Financial Markets ‒ particularly so in Rates. Corporate Finance and Retail Products were also modestly weaker than our estimates.
     
    Credit Suisse gave the stock an "underperforming" rating and set a target price of 615 pence.
     
    While the performance is in line we think the revenue momentum will be a disappointment relative to expectations given recent performance and a very full valuation.
  • Carlyle Group reports Q2 earnings per share of 59 cents, beating the IBES share view of 41 cents.
     
    Revenues for the quarter increased to $908.4 million versus $608 for the year before. Assets under management also rose to $169.8 billion versus $161.9 billion at the end of the previous quarter.
     
    The company managed to raise over $8 billion in capital and says acceleration is likely in the next half of the year. However, it did record a charge of $6 million related to settlements and other expenses.
  • More U.S. earnings released.
     
    New Jersey Resources reports Q3 earnings per share of 22 cents on net income of $19 million. The company says it is on track to meet its fiscal target for 2017 of $1.65 to $1.75 earnings per share.
     
    Operating revenue for the quarter rose to $457.5 million from $393.2 million the year before.
  • Restaurant Brands International reports adjusted earnings per share of 51 cents in Q2. Revenue rose to $1.133 billion versus $1.04 billion the year before.
     
    Revenue came in under expectations of $1.15 billion.
     
    In sales growth, the Tim Hortons brand lossed 0.8 percent, while Burger King sales grew 3.9 percent. Comparable store sales grew 2.7 percent for Popeyes.
     
    The company plans to launch the Tim Hortons brand in Spain. 
  • The LinkedIn Workforce report says the hiring streak continues, with high demand in the health care industry. Hiring is up 17.3 percent year on year according to the company.
  • Zimbabwe is imposing capital controls.
     
    The country's central bank governor Mangudya says cash exports are now limited to $2,000, and amounts above that will require central bank approval.
  • Mondelez CEO Irene Rosenfeld is to step down, replaced by Dirk Van de Put.
     
    This as Mondelez reports earnings per share of 32 cents in the second quarter, with an operating margin of 10.7 percent and revenue of $5.99 billion for the quarter.
  • The Dow Jones Industrial Average is eyeing the 22,000 mark ahead of the U.S. market open.
     
    The index came within 10 points of reaching this level in yesterday's session, but pulled back to close at 21,963.92 points.
     
    Future values predict the Dow to open 33 points higher, bringing it very close to the 22,000 level.
     
     
  • Oil prices are up today, but Brent crude remain some way off the multi-month high of $52.93 hit on Monday.
     
    Rising U.S. inventories are also weighing on the oil price.
     
     
  • We're two hours from the opening of U.S. markets. Meanwhile in Europe, the Stoxx 600 is down 25 basis points.
     
    The pan-European index is being pulled lower by the basic resources, autos and banking sectors. Standard Chartered and SocGen are among the worst performers on the index.
     
    Here's how the individual major European markets are performing.
     
     
     
  • Several more U.S. stocks report their latest earnings. Here are some highlights.
     
    Autonation reports an earnings miss, with earnings per share of 86 cents against estimates of 97 cents and revenue of $5.279 billion versus expectations of $5.553 billion.
     
    Spartan Motors reports Q2 net income of $1.12 million and sales of $169.7 million. Sales beat estimates of $167.8 million.
     
    Dominion Energy reports net income of $390 million, or 62 cents per share, down from earnings of $452 million, or 73 cents per share, for the same period the year before. 
  • Och-Ziff Capital Management reports Q2 total revenue of $148.9 million versus $152.6 million the same period the year before. Net income for the quarter was $13.1 million.
     
    The company says assets under management increased about $0.2 billion to $32 billion.
  • Here are the stocks that will keep traders in the U.S. busy this morning.
     

    Early movers: MDLZ, AAPL, WMT, CAH, GRMN, AN, FEYE, VZ & more

    CNBCSome of the names on the move ahead of the open.
     
  • The U.S. dollar has pared losses after a weaker than expected ADP figure for July was offset by a revision to the June number.
     
    The employment report saw 178,000 jobs added in July. A consensus average from a Reuters poll saw 185,000 jobs predicted.
     
    The June figure was revised to 191,000 from 158,000.
     
     
    More on that story here:
     

    'High-gear' US 'job machine' adds 178,000 jobs in July: ADP

    CNBCCompanies added 178,000 jobs on a surge in services and despite a decrease in manufacturing, according to a ADP and Moody's Analytics.
     
  • The Dow Jones Industrial Average is eyeing the 22,000 mark ahead of the U.S. market open.
     
    The index came within 10 points of reaching this level in yesterday's session, but pulled back to close at 21,963.92 points.
     
    Future values predict the Dow to open 46 points higher, bringing it past the 22,000 level.



     

  • Teneo Intelligence has put forward the idea that an increasingly unpopular Shinzo Abe may leave office in Japan sooner than previously expected.

    The Prime Minister, they say, could be out of power by as early as next year. The research questions the future of Abenomics and summarizes the main issues as follows:

    • Prime Minister Shinzo Abe’s falling popularity has raised the prospect of his leaving office sooner than expected, raising questions about the future of his economic policy program.
    • The two most likely contenders to succeed him – Foreign Minister Fumio Kishida and former local revitalization minister Shigeru Ishiba – have contrasting approaches to Abenomics.
    • Kishida, the likely frontrunner, would offer greater continuity; Ishiba, a longshot, has signaled the possibility of a sharp break with Abenomics.

    Japanese Prime Minister Shinzo Abe 

  • Lockheed Martin says it is to invest $350 million in a satellite production facility near Denver. The firm expects the 3-year project to employ 1,500 contractors.

    The facility will include a thermal vacuum chamber to mimic the conditions of space.

     Steven Puetzer | Getty Images

  • The ADP reading was a little softer than our forecast for the BLS data (headline: 200,000, private: 195,000), but close enough that we feel comfortable with our call for Friday’s report. 

    We do not think that the ADP report is a very reliable predictor of the BLS data, but it echoes the signal from several other indicators that point to solid job growth continuing through July.

    After the ADP number for July, JP Morgan is sticking to its prediction for Friday's nonfarm payroll figure.

  • Carmakers in Germany and France have reportedly agreed to cut the emissions of 5 million cars by updating their software.

    The measures are said to be able to reduce nitrogen oxide by between 25 and 30 percent.

    Daimler, BMW, Volkswagen, and PSA Group are all said to have agreed to the deal at a meeting in Germany.


  • Apple has helped push the Dow across the, largely symbolic, 22,000 mark.


    That 22,000 mark for the Dow has come just under 6 months after the 20,000 level was breached. 




  • The best and worst performers on the S&P 500 look like this:



  •  The main movers on the Nasdaq after about 15 minutes of trade are as follows:



  • Apple may have got it over the line, but it was the rise and rise of Boeing that contributed most.
     

    Dow 22,000: Here are the stocks that got us here

    CNBCThe Dow Jones industrial average broke above 22,000 on Wednesday, just five months after hitting 21,000 for the first time.
  • Kathleen Brooks at Cityindex has been looking at how the earnings season has gone so far. She says virtually every sector has exceeded expectations:
     
    Technology matters

    Overall, the biggest surprise for the S&P 500 was the technology sector, which beat expectations even though only 27 out of 50 companies have reported. This was led by some stellar results for Apple last night, which could stem the decline in the share price, which has been wobbly since peaking in May. Although earnings growth for the tech sector is, so far, 17%, it’s sales growth that really matters and so far that is running above 10%, which is likely to give investors reason to cheer. If the tech sector can do well then it may also help to lift the entire US index, since this sector is the largest in the S&P 500, making up 22.2% of the entire index.

    Financials and healthcare pay catch up

    Aside from technology, the other sectors to watch include financials, which makes up 14.5% of the index, and healthcare, which makes up 14.3% of the index. Luckily for S&P 500, both of these sectors have also been top performers, with the majority of financial firms having beaten expectations for both sales and earnings. On the growth front, sales growth of 5.15% last quarter was below the average out of all of the sectors, however, the 10% increase in earnings growth was above the average of 8%. Healthcare had more moderate progress, but still reported growth in positive territory, and managed to beat expectations.

    Why outliers may not matter for the S&P 500

    The outliers include oil and gas and consumer services, which failed to beat expectations on earnings. On the growth front, consumer goods and telecommunications have so far failed to report positive sales growth, while consumer services and utilities failed to report positive earnings growth. However, these sectors make up such a small section of the S&P 500 that they don’t have a major bearing on the overall index. In fact, considering how large some of the S&P 500 companies are becoming (here’s looking at Apple), in the next few years it would not be surprising if some of the smaller sectors fall out of the index, and the S&P 500 could turn into the S&P 50.
    So how does Q2 compare with Q1? While it’s always a bit dangerous to make this comparison without all of the S&P 500 members having reported earnings yet, the trend appears to be for positive growth across most sectors, although the rates of growth for both sales and earnings are lower than they were in Q2, as you can see in chart 1 below.



     
  • The pan-European Stoxx 600 has steadily edged down 0.29 percent during Wednesday, with most sectors and major bourses in negative territory.
     
     
    Basic Resources led the losses amid earnings news. Rio Tinto reported a more than doubling of its first-half profit on Wednesday and rewarded shareholders with a record interim dividend. However, underlying earnings missed analyst forecasts and its shares dipped more than 2.5 percent.
     
    Banking stocks were also lower on Wednesday after mixed results from European lenders. Societe Generale said net profit slumped 28 percent in the three months through June, as the Paris-based lender was hit by litigation costs and stubbornly low-interest rates.
  • The euro hit a high of 1.1868 against the US dollar earlier in today’s session, its highest level since January 2015 when it traded as high as 1.1870.  
     
     
    The pound hit a high of 1.3247 against the dollar, its highest level since September 2016 when it traded as high as 1.3253.  
     
     
  • Stockpiles of gasoline have fallen by a markedly larger amount than analysts had forecast according to weekly EIA data.
     
    Gasoline stocks fell by the equivalent of 2.5 million barrels, compared with analyst expectations of a 636,000 barrel drop.
     
    According to the EIA, U.S. gasoline demand last week rose to 9.842 million barrels, the highest ever recorded.
     
    Crude oil stocks fell by 1.5 million barrels, which was less than expected by half. More on the story below:
     
     
  • President Trump has signed a sanctions bill into law.
     
    The act will negatively affect Russian energy companies and has upset European countries who rely on Russia for gas. 
  • Stocks have retreated after initially opening positively in the United States. The Dow is no longer above 22,000. Fun while it lasted.
     
     
  •  
    Top corporate earnings for tomorrow in Europe and the United States:
     
    FRANCE           AXA 
    Credit Agricole 
    Aviva interim results
     
    GERMANY        Adidas 
    BMW 
    Beiersdorf 
    Continental
    Deutsche Telekom
    Merck 
    Siemens
    Evonik
     
    ITALY               Campari 
    Mediobanca
     
    UK                   Shire 
    Next 
    Randgold Resources
    Next Q2 trading statement
    Serco Group interim results
    London Stock Exchange Group: Interim 2017 Results
     
    US                    Kellogg, Yum Brands, Sotheby's, Kraft Heinz, Actovision Blizzard, Viacom, Western Union, Etsy, GoPro
  • You want how much?
     

    10 road bikes that are more expensive than a brand new car

    CNBCA top of the range road bike is a little bit more expensive than the two wheels of your youth.
  •  
    European markets are closed.
  • So that is where we will leave the blog.
     
    Tomorrow we have a number of top TV guests (all times BST):
     
    0645 Jean-Yves Charlier, CEO, VEON
    0700 Andrew Sheets, Chief Cross-Asset Strategist, Morgan Stanley
    0720 Marcus Kuhnert, CFO, Merck
    0730 Jérôme Grivet, Deputy Managing Director, Group Finance, Credit Agricole
    0930 Wolfgang Schäfer, CFO, Continental
     
     
    There will also be a special program to cover the Bank Of England Interest Rate Decision and Inflation report.
     
    Be sure to join us from 06:00 here on World Markets Live.
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