World Markets Live - August 30 - CNBC Live Events
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CNBC Live Events

World Markets Live - August 30

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

  • These are the top headlines this morning:
     
    • The United Nations condemns North Korea's latest missile test. But Pyongyang says its latest ballistic launch is merely a "first step".
    • Wall Street seems to shake off worries about trouble in the, as stocks close up in the states, and Asian shares largely follow America's lead.
    • Harvey's aftermath causes trouble in Houston and surrounding areas, including mass disruption to oil refining.
    • Moscow rides to the rescue of troubled private lender Otkritie, in one of the biggest bank bailouts in Russian history.
  • Crude oil prices are sliding today, but gasoline spiked to its highest price since July 2015 as flooding and storm damage caused by Hurricane Harvey has shut one-fifth of U.S. oil refineries, crimping demand for crude but raising fears of a fuel shortage.  
     
     
    Fewer refineries means refinery rates take longer, which could cause a build-up of crude supply.
     
    Here are crude prices as of 06:02 a.m. BST
     
     
  • Markets appear to be shaking off the jitters caused by North Korea's missile test.
     
    The U.S. markets finished Tuesday's session in positive territory, after a shaky start. The Dow opened nearly 100 points lower, but finished the session up 56 points.
     
     
    Asian markets have followed Wall Street higher.
     
     
  • North Korean leader Kim Jong Un called Tuesday's missile test a "meaningful prelude" to containing the US territory of Guam.
     
    Local media said the rocket which soared over Northern Japan was the "first step of a military operation in the Pacific."
     
    The comments come as the UN security council unanimously condemned the launch and called on Pyongyang to immediately halt its ballistic missile programme.
     
    Kim Jong Un watching the launch of an intermediate-range strategic ballistic rocket Hwasong-12 on Tuesday
  • Berkshire Hathaway has become Bank of America's largest shareholder after it opted to acquire 700 million shares at a heavy discount.
     
    The new shares are worth $16.5 billion, giving the Warren Buffett backed conglomerate around $11.5 billion in paper profit. Bank of America CEO Brian Moynihan welcomed the move, saying he appreciated Buffett's continued support.
     
    Buffett at the Berkshire Hathaway annual meeting in May
  • Goldman Sachs will reportedly announce plans to overhaul its bond-trading unit next month.
     
    Reuters says the U.S. bank has succumbed to pressure from large investors, who are frustrated by the lender's vague explanations of troubles related to the business.
     
    This after Goldman's CFO blamed last month's 40 percent drop in bond-trading revenue on difficulty "navigating" the markets. 
  • The Russian central bank has intervened to save Otkritie from collapse, after the bank suffered a run on deposits. The bail-out is one of the biggest in Russian history and it marks the first time one of the country's 'systemically important' lenders has required a government-backed rescue.
     
    The Russian central bank says it's preparing emergency liquidity measures for other lenders as it seeks to avoid contagion. 
     
     
     
  • Uber has said it is cooperating with a preliminary investigation into possible bribery law violations. The company confirmed that the U.S. Justice Department had started a probe into whether its managers broke U.S. laws against bribing foreign officials.
     
    It is not known whether the DOJ is focused on one or more countries where the ride-service operates.
     
    The news came shortly before Uber's board officially announced the appointment of Dara Khosrowshahi, the former CEO of Expedia, as its next leader. 
     
     
  • Houston has imposed a curfew as it battles the impact of Hurricane Harvey. Officials said the curfew will run from midnight to 5am for an indefinite period in a bid to prevent robbery and looting.

    America's fourth largest city is bracing for more rainfall and for water levels to rise. This after authorities were forced to release water from overflowing reservoirs yesterday to alleviate pressure on two dams.
     
     
    President Trump visited Texas to survey the damage, which is forecast to run into the tens of billions of dollars. Meeting with Governor Greg Abbott in Corpus Christi, where Harvey made landfall, the president called the destruction historic.

    He also praised the response so far, but said there was still much to be done.
  • Tomorrow French President Emmanuel Macron will reveal his updated proposals for reforming the country's labour market. Employers' groups are rallying around the president's reform agenda.
     
    However, France's hard-line 'CGT' union has pledged to oppose attempts to rewrite the labour code. 
     
     
  • U.K. Prime Minister Theresa May is set to meet with her Japanese counterpart Shinzo Abe in Japan this week during a three-day visit to the country.
     
    The two will discuss a post-Brexit free trade agreement and defense cooperation. This as May looks to forge bilateral trade ties with Japan amid Brexit concerns and heightened regional tensions over North Korea.  
     
     
  • Sterling has hit almost a year low versus the euro as investors searched for relative safety amid political concerns, including worries over the slow progress of Brexit talks.
     
    This after the euro benefited from geopolitical uncertainty around North Korea, causing the single currency to jump to a two and a half year high against the dollar.
     
     
  • A massive search and rescue mission continues in Texas, with teams dispatched from across the U.S. to help. NBC's Lester Holt joined one of the search groups and has this report.

  • Are Europe's periphery economies on the road to recovery? That’s the view of Daniel Gros, director at the Centre for European Policy Studies. However, the rising euro may create problems.
     
    Their recoveries started when the euro was pretty high. So they were solid. It looks perhaps too rosy now and as long as the euro doesn't go much above $1.20 they should be able to continue. But should there be an overshot of the exchange rate than of course there could be a problem. With their large foreign debt, they haven't got a second wheel on their machinery. They have to grow through exports, they cannot grow through domestic demand.
     
    Gros also talked about Brexit and its impact on the continent.
     
    Many people are worried about Brexit, but mainly about its political aspects. On the economy people are now fairly confident that a cliff edge will be avoided, that there will be some kind of interim deal whereby free trade is preserved. So the economic aspects of Brexit really keeps nobody busy anymore.
     
    Gros says Brexit has strengthened cohesion in Europe.
     
     
  • All week we're taking a close look at political and business developments in Europe, and exploring how they'll affect your portfolio. In this week's Trader Poll, we want to know which European development you think will move markets most in the coming days?
     
    • Brexit,
    • German elections
    • Italian political instability
    • or French labour reform debate
     

    Tell us what you think: Which European development will move markets most?

    In this week's Trader poll, we want to know which euro zone development will cause the greatest reaction in markets.
  • President Donald Trump is expected to lay out his vision for tax reform later today. Reports suggest he will elaborate on plans to curb deductions for high-income taxpayers.
     
    The president's speech comes at a time when Republican senators are beginning to draw battle lines in next month's fight over raising the nation's borrowing limit.
  • Here are the headlines for the top of the hour:
     
    • The United Nations condemns North Korea's most recent missile test. But Pyongyang says the ballistic launch is merely a "first step".
    • Wall Street seems to shake off worries about tension in the region, as stocks close up in the states, and Asian shares largely follow America's lead.
    • Texas works to contain the aftermath of Harvey as flooding continues, knocking out one-fifth of America's refineries.
    • Moscow rides to the rescue of troubled private lender Otkritie, in one of the biggest bank bailouts in Russian history.
  • Norway's July goods consumption falls 0.1 percent month-on-month. Seasonally adjusted retail sales volumes, excluding car sales, rose 0.4 percent month on month versus 0.3 percent expected.
  • WH Smith expects the outcome for its full year to be in line with expectations. The company says its travel business continues to deliver a strong performance with good sales. Its high street business in performing in line with expectations. Cost savings and margin improvements have been delivered in line with its profit-focused strategy.
  • Gina Sanchez, CEO of Chantico Global, says there may be an economic impact if China intervenes in a military conflict in the Korean peninsula.
     
    The working assumption we have and that control risks give us is China would likely stay on the sidelines. And if that happens then this is a very quick geopolitical event. 

    If there was a military scenario, the working belief is that would be a very quick scenario, where with the help of the U.S., the South defeats the North rather quickly, this would not be a long, protracted exchange.
     
     
  • Tomorrow French President Emmanuel Macron will reveal his updated proposals for reforming the country's labour market. Employers' groups are rallying around the president's reform agenda. However, France's hard-line 'CGT' union has pledged to oppose attempts to rewrite the labour code.
     
    CNBC’s Gemma Acton asked Pierre Gattaz, president of the French employers' group Medef, what he expects to hear from the president.
     
    Macron was elected on the simplification of the labour law on the one side and a tax decrease on the other side. So tomorrow will be the day where we are going to see the writing of the new labour law, so we need simplicity and we need more dialogue with our own players.
     
    Gattaz says he is hoping for some good moves and it is time to invest in France.
     
     
  • Houston has imposed a curfew as it battles the impact of Hurricane Harvey. Officials said the curfew will run from midnight to 5am for an indefinite period in a bid to prevent robbery and looting.

    America's fourth largest city is bracing for more rainfall and for water levels to rise. This after authorities were forced to release water from overflowing reservoirs yesterday to alleviate pressure on two dams.
     
     
  • The major European markets are called to open higher today, following Wall Street and Asian markets higher as investors recover their nerves after North Korea's missile test yesterday. 
     
    The Stoxx 600 endured one of its worst days of 2017 yesterday, falling more than 1 percent.
     
     
  • Yields have pulled back from lows hit following North Korea's latest missile test. The flight to safety pushed U.S. 10-year treasury yields to their lowest level since November, and Japan's 10-year yield to a 4-month low, while Germany's 10-year bund fell 3 basis points.
     
    Andrea Iannelli, ‎investment director at Fidelity International, says yields have come a long way since the post-Trump election highs.
     
    There’s still room for duration, for fixed income in general, especially government bonds in this environment, to remains supported.
     
    He says the recent geopolitical news provides support. The lack of underlying inflation picking up also matters for investors with a long-term view.
     
     
  • Twenty-first Century Fox's Rupert Murdoch has pulled the American news channel Fox News, from the Sky platform in the U.K.
     
    In a statement, the company said it was no longer commercially viable to provide Fox News in Britain, where only a few thousand people watch.
     
    The U.K. government is currently considering the media mogul's bid to buy the stake of Sky that Fox currently does not own.
     
    Rupert Murdoch, right, with Roger Ailes, the former head of Fox Nerws, in 1996
  • Santa Fe reports Q2 revenue of 71 million euros. Down from 76.4 million a year ago. Pretax profit for the quarter fell to 0.7 million euros from 3.4 million a year ago. 
  • U.K. retailer Marks and Spencer says it has opened talks with its franchise partner Al-Futtaim, for potential purchase and refranchising of M&S's owned retail business in Hong KJong and Macau.
     
    These talks may see Al-Futtaim become the sole franchisee for M&S in these markets. These stores will continue to trade as normal, according to the company.
     
     
  • European markets open strongly for Wednesday's session. However, the index is on track for its third negative month in a row.
     
     
  • Sweden's consumer confidence index for August falls to 100.3 versus 102.2 in July. This was below forecasts. 
     
    Manufacturing confidence falls to 117.1 versus 120.3 in July, also below forecasts.
     
    Meanwhile, Denmark's August industrial confidence indicator is at 0 points, according to Reuters.
     
    Lastly, Germany's August CPI for the state of Saxony rises 0.2 percent month on month and 1.9 percent year on year, according to the state statistics office.
  • All sectors of the Stoxx 600 are gaining this morning as the market recovers from geopolitical jitters caused by North Korea.
     
    The best performing sectors today are banks, media and insurance. These were the worst performers yesterday so are seeing a decent recovery rally today.
     
     
     
  • The Stoxx 600 is up 0.6 percent, recovering from one of its worst sessions of the year.
     
    Here's how the individual European markets are doing this morning.
     
     
     
  • Here are the best and worst performers on the Stoxx 600 this morning.
     
    RTL is at the top of the table, after the European broadcast group topped second quarter revenue expectations. The firm also confirmed its 2017 outlook. However, it has said it is experiencing a "challenging" TV advertising market after it faced declines in ad revenues in all its markets.
     
     
     
     
     
  • These are the stocks making headlines today.
     
    • Twenty-first Century Fox's Rupert Murdoch has pulled the American news channel Fox News from the Sky platform in the UK. In a statement, the company said it was no longer commercially viable to provide Fox News in Britain, where only a few thousand people watch. The UK government is currently considering the media mogul's bid to buy the stake of Sky that Fox currently does not own.
     
    • Germany said that a legal challenge will not delay a planned state bridging loan to Air Berlin. This after rival airline Germania asked a court to halt the loan until the EU green-lights the state aid for the insolvent company. In the meantime Lufthansa is reportedly looking to buy most of Air Berlin's long-haul planes.
     
     
    • Gazprom has reported a near 80 percent drop in second quarter net income, missing expectations. The Russian gas company cited foreign exchange rates as weighing on the results. Net debt for the year also increased by 19 percent.
     
    • Telenor said its planned share buyback will be handled by a third party. The external player will make its trading decision independently of Telenor and will be able to buy shares even at times when the telco company is restricted. Telenor will then buy its shares from the third party up until the end of February 2018.
  • William Hobbs, head of investment strategy U.K. and Europe at Barclays, says markets are concerned about valuations, with clients asking why they should buy equities right now.
     
    Despite these concerns, Hobbs says that global growth is more important and that valuations aren’t important for tactical investors.
     
    The reality is the future is unknowable. We’re always coming across stuff. When we look at risks at the start of the year we’re identifying the things we think we can see: nuclear war, French elections, whatever. But risk is like an iceberg, most of it is submerged from view until you come upon it.
     
    Hobbs added that central bank monetary normalization is another potential “black swan” risk for markets.
     
     
  • EU Commission President Jean-Claude Juncker has ruled out trade negotiations with Britain until the divorce bill is settled. He also criticised the U.K. Government's Brexit stance.
     
    Valdis Dombrovskis, VP for the euro and social dialogue at the European Commission, says the third round of Brexit negotiations is currently ongoing and we can expect it to wrap up tomorrow, but the EU emphasizes it is most important to agree on the terms of orderly withdrawal before discussing other topics such as future relations.
     
    As regards citizen’s rights, the EU has been very clear that this is a very important topic for us to provide legal certainty and clarity to EU citizens living in the U.K. and vice versa. 
     
    As regards the border between the Republic of Ireland and Northern Ireland we have discussed how to maintain the common travel area and protect the Good Friday agreement and on this there is political will and willingness to find a technical solution.
     
     
  • U.S. markets recovered from steep drops at the beginning  of the session yesterday to finish in positive territory. The Wall Street rally is expected to continue today, according to future values.
     
     
  • Libya's state oil company says 360,000 barrels per day of crude oil production has been shut down by pipeline blockades. Three oil fields have been closed.
     
    Losses from the shut down total $160 million so far. The National Oil Company says it will supply Zawiya refinery by sea to keep refinery producing  fuel for domestic production.
     
    Oil prices remain subdued as Storm Harvey knocks out U.S. refineries.
     
     
  • Inflation for the German state of Brandenburg in August grew 0.1 percent month on month, down from 0.4 percent in July, according to the State Statistics Office.
     
    CPI inflation grew 1.8 percent year on year, versus 1.4 percent the month prior.
  • These are the top headlines this morning:
     
    • The United Nations condemns North Korea's most recent missile test. But Pyongyang says the ballistic launch is merely a "first step".
    • Texas works to contain the aftermath of Harvey as flooding continues, knocking out one-fifth of America's refineries.
    • Moscow rides to the rescue of troubled private lender Otkritie, in one of the biggest bank bailouts in Russian history.
    • TV delight for RTL. Shares in the media group jump after a strong performance in the company's production arm compensates for declining advertising revenues.
  • Inflation for the German state of Hesse is unchanged month to month in August, but is up 1.8 percent for the year.
     
    CPI for the state of Bavaria is up 0.2 percent month to month, and 1.8 percent year to year.
  • North Korean leader Kim Jong-Un called Tuesday's missile test a "meaningful prelude" to containing the US territory of Guam. Local media said the rocket which soared over Northern Japan was the "first step of a military operation in the Pacific." The comments come as the UN security council unanimously condemned the launch and called on Pyongyang to immediately halt its ballistic missile programme.
     
    CNBC’s Chery Kang reports the UN Security Council’s reaction was as expected. It condemned the behavior but did not implement any new sanctions.
     
    There seems to be a lack of a united front, especially among the five permanent members of the five permanent members of the Security Council with veto powers, especially when Russia and China still taking an issue with Washington’s decision to deploy its anti-missile defense system in South Korea.
  • The market selloff yesterday is unwinding today in European markets. Investors are following the trend in Wall Street and Asia and shaking off concerns about geopolitical tensions between the U.S. and North Korea.
     
     
  • U.K. Prime Minister Theresa May has arrived in Japan, where she is set to meet with her Japanese counterpart Shinzo Abe. The two will discuss a post-Brexit free trade agreement and defense cooperation.
     
    This as May looks to forge bilateral ties with Japan amid Brexit concerns and heightened regional tensions over North Korea. 
     
     
     
  • Shares of RTL are trading higher after the European broadcaster's first half revenue beat estimates. This, despite experience a "challenging" TV advertising market after it faced declines in ad revenues in all its markets. RTL confirmed its 2017 outlook. 
     
    The group's co-CEO sees German TV ad revenue up around 3 percent in the third quarter and up around 1 percent for the full year, adding that RTL's Dutch TV ad business is trending the same as in the first half, when revenue fell 9 percent.
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