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.

  • 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.
     
    Nathalie Loiseau, French minister for European affairs, says Macron represented enthusiasm for the EU, which may have helped him win the election.
     
    If you’d have asked to a political advisor whether it was wise to do so, each and every political advisor would have said no, and actually he was elected by people who think Europe is the solution and not the problem, although an important part of the population is still skeptical about the current status of the European Union.
  • The Russian central bank has intervened to save Otkritie from collapse, after the bank suffered a run on deposits. The bailout 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.  
     
     
  • Investors piled back into European stocks on Wednesday, boosting indexes higher in a relief rally a day after geopolitical concerns caused a sharp dip across equity markets.
     
     
  • Ultra low official interest rates continue to "weigh heavily" on Germany's smaller banks, two watchdogs said on Wednesday. That's according to Reuters.

    Germany's bank regulators, the Bundesbank and BaFin, surveyed about 1,500 small and medium-sized banks, accounting for 88 percent of institutions and 41 percent of total assets.

    The findings showed that banks expect pretax profit to fall by an overall 9 percent over the next five years, the watchdogs said.

    That corresponds to a 16 percent decline in the banks' total return on capital. While steep, that is less than the 25 percent decline in return on capital anticipated in the previous survey two years ago.

    While these institutions are planning ahead somewhat more positively than two years ago, it should be noted that this finding solely indicates that their profitability - which started low - is deteriorating at a slower pace than before, said Andreas Dombret, a Bundesbank board member who oversees banking supervision.
  • Oil prices slid on Wednesday but gasoline spiked to their highest since July 2015 as flooding and storm damage in the wake of Hurricane Harvey knocked out one-fifth of U.S. refineries, crimping demand for crude but raising fears of fuel shortages.

    Hurricane Harvey, which has been downgraded to a storm, has caused massive floods across coastal Texas, including in Houston. It is now moving into Louisiana, where more floods are expected.
     
     
  • UK Prime Minister May says we must focus on what our future relationship with EU is going to be, ensuring we can get trade deal right. She also says that even if we start on basis of existing trade deal, post-Brexit Britain will be able to renegotiate and change terms in the future. That's according to Reuters.
  • U.S. stock index futures pointed to a higher open on Wednesday, as geopolitical concerns surrounding North Korea and the West appeared to show signs of receding.

    In the previous day's trade, markets worldwide were on edge following news that North Korea had fired a ballistic missile which had passed over Japan. However, investor nervousness around North Korea appears to have eased.
     
     
  • Gold rose on Wednesday as safe-haven demand was buoyed by expectations that geopolitical tensions could persist, although further gains were capped as the dollar recovered slightly amid perception of a brief lull in tensions surrounding North Korea.

    A lot of people are still seeing gold as a safe haven because we have not heard much in terms of reactions of the different countries to North Korea's action, said Brian Lan, managing director at dealer GoldSilver Central in Singapore.
     
     
  • Sterling nursed losses on Wednesday after falling to an 11-month low against the euro in the previous session as investors remained sidelined with little interest in trading the currency amid ongoing Brexit negotiations.

    Against the euro, the British pound recovered some ground to trade at 92.47 pence after falling on Tuesday to its weakest level since early October at 93.07 pence per euro.
     
     
  • Amazon, Microsoft collaborate to help Alexa, Cortana talk to each other. They are expected to start talking to each other later this year. That's according to Reuters.
  • Ireland, Spain, Portugal and Greece have come a long way since the 2008 financial crisis. They are now often cited as examples of where painful reforms led to economic growth.

    Given their turnaround, CNBC asked economists and market strategists which of these countries is the best option for investments.
     

    The European periphery is back from the brink. But where should you invest?

    CNBCIreland, Spain, Portugal and Greece have come a long way since the 2008 financial crisis. CNBC asked economists and market strategists which of these countries is the best option for investments.
  • Let's check back on European stocks that are trading higher this morning as investors shrug off geopolitical concerns:
     
     
  • European markets edge higher as North Korea jitters subside

    CNBCEuropean markets edged higher on Wednesday as investors tried to oust any nerves surrounding North Korea tensions and took advantage of the positive sentiment seen overseas.
  • Banks are increasingly turning to insurance to protect their capital from "operational risks" like cyber attacks and rogue traders, and insurers say they can help safeguard lenders by providing an extra layer of expertise. That's according to Reuters.

    After a spate of expensive court cases and IT outages, banks including Credit Suisse, Deutsche Bank and Lloyds are looking for ways to mitigate the costs of such episodes by taking out insurance.

    Most such insurance contracts are arranged privately and the details never publicised. But the practice gained new attention last year, when Credit Suisse sold a 220 million Swiss franc bond tied to its operational risk.
    Insurers are getting more and more sophisticated as risk management partners, said Domenico del Re, director at consultants PwC. If you think of the parallel with fire risk, by helping companies getting advice on where sprinklers should located, the same is happening with cyber: where insurers are linking up with IT and cyber specialists.
  • The euro slipped back below $1.20 on Wednesday, as investors worried that a rally that has seen the single currency gain almost 14 percent since the start of the year might be running out of steam.

    The dollar was broadly higher, recovering from a four-month low against the yen, as investors’ worries over North Korea’s latest missile test eased, boosting appetite for riskier assets.
     
     
  • Here's our full write up on the Amazon and Microsoft partnership deal:
     
  • U.S. futures point to a higher start to the trading day as investors start to look beyond geopolitical tensions:
     
     
  •  
    This journalist has posted images of the flooding outside of the Port Arthur plant. At this stage CNBC cannot verify these images.
  • The largest refinery in the United States, Motiva's Port Arthur plant in Texas, has shut down because of flooding
     
    With the shutdown of the Motiva refinery, 19.6 percent of U.S. refining capacity will be shut due to Tropical Storm Harvey, according to Dow Jones Newswires.
     
    Sources familiar with plant operations said to Reuters the 603,000 barrel per day (bpd) Port Arthur refinery was lashed by heavy rain and portions of the refinery were flooded.
     
    The reports suggest the refinery started shutting down at 5 a.m. eastern.
  • ADP August payrolls has come in at 237,000 private jobs added.This is the biggest addition since March.
     
    That number was expected at 185,000.
     
    Services added 204k, Goods-producing jobs rose 33k while manufacturing adding 16k.
     
    Trade and Transport added almost a quarter of the jobs figures.
     
    The U.S. dollar has hit an almost two-week high against the yen.
     
    The dollar has risen in value on the ADP employment figure.
     
  • U.S. second quarter GDP has been revised up to 3.0 percent on an annualized basis. The original figure for the April to June spell was 2.6 percent.
     
    The economic growth is likely to support views that the Fed will soon unwind its $4.2 trillion account of Treasury bonds and mortgage-backed securities.
     
    Treasury yields have risen along with the dollar in reaction.
     
    Q2 Inflation data released at the same time was less impressive for Fed watchers. The central bank's preferred inflation measure, the personal consumption expenditures index, stayed at the 0.9 percent rise previously reported.
  •  Futures have turned lower with the S&P now looking set for a flat open.
     
     
    Here are the stocks to watch as the open of U.S. trade nears.
     

    Early movers: HRB, BAC, AN, TM, GOOGL, AMZN, GS, TGT, MSFT, AAPL & more

    CNBCSome of the names on the move ahead of the open.
  •  
    President Trump is again talking tough on North Korea. The effect on assets is, as yet, unclear.
  • New unilateral sanctions on third-country entities by the U.S. will impact global supply chains. European countries are voicing concern.
     

    US sanctions are very bad news — unless you're North Korea

    CNBCAdditional U.S. sanctions on several countries and third-party entities are sending jitters due to the impact to global supply chains.
     
  • The Federal Reserve Governor Jerome Powell says the central bank will continue to pressure directors of large banks to be strong and effective against the type of risks that toppled the pillars of the global economy ten years ago.
     
    Powell said in a speech today that esoteric product that triggered the financial crisis must not be allowed to occur again.
     
    The governor offered some sympathy to banks who claimed the regulations put in place since the crisis were harming their effectiveness and promised to work closely with them. 
  •  
    U.S. markets have opened flat at the start of Wednesday trade.
     
     
     
  • Market expectations for a rate hike in December were at 41 percent on Wednesday, up from 34 percent on Tuesday, according to the CME Group's FedWatch tool.
     
    This seen as a reaction to better than expected growth and jobs data reported Wednesday morning in the U.S.
     
    Source: CME Group
     
  • Here are the best and worst on the Dow Jones Industrial Average index.
     
    Apple CEO Tim Cook collected $89.6 million in incentives this week, according to a Securities and Exchange Commission filing, part of the 10-year deal he signed when he took over as CEO from the late Steve Jobs in 2011.
     
    Goldman Sachs  plans to detail a turnaround strategy for its bond-trading unit next month, according to a Reuters report.
     
     
     
  • Crude oil slid and gasoline futures hit their highest since mid-2015 on Wednesday as flooding and damage from Tropical Storm Harvey shut about a fifth of U.S. refineries.
     
    Hurricane Harvey and the flooding that has followed are probably not major disruptions to crude oil production or supplies. Offshore production in the Gulf of Mexico was interrupted as Harvey passed, but it is already restarting. 
     
     
    However the processing of crude into refined products such as gasoline is very much disrupted.
     
    Below is a 5 year gasoline chart which reflects a concern over looming supply shortages.
     
     
  • European markets are in better health for those long equities today. This abetted by a retreating euro and improved data.
     
    Economic sentiment in the euro zone rose during August, beating market expectations, boosted by an uptick in confidence from the services and industry sectors.
     
    The data from the European Commission showed that the economic sentiment index rose to 111.9 in August. A Reuters poll of economists had expected a reading of 111.3.
     
     
  • Crude inventories in the United States fell by 5.4 million barrels last week to a total of 457.7 million barrels.
     
    A draw of 1.9 million barrel draw was tipped.
     
    Gasoline stocks actually rose 35,000 barrels versus a predicted 1 million barrel draw. Futures in Gasoline have not shifted much despite that surprise build.
     
     
  • Shares in Russian bank Otkritie have fallen about 5 percent according to Reuters. 
     
    Fears are returning that holders of debt related to the company will be asked to contribute to its rescue, i.e. a bail-in.
     
    Otrikie is Russia's biggest private lender and was bailed out by the Russian central bank on Tuesday.
     
    But the central bank has reportedly said that if the bank's capital falls below certain levels it could convert debt into shares.
     
    The Otrikie situation has prompted investigation into the health of the wider Russian banking sector.
     

    Russia bailout stokes fears of a systemic banking crisis

    CNBCRussia's central bank stepped in to launch one of the largest bank rescues in the country's history, stoking fears of a possible systemic crisis in its banking sector.
  • Another White House split?
     
    President Donald Trump says "talking is not the answer" to North Korea's latest missile test.
     
     But his defense secretary appears to disagree.
     
    Jim Mattis has reportedly said that the United States is NOT out of diplomatic solutions with North Korea.
  • Trump on North Korea: 'Talking is not the answer!'

    CNBCPresident Donald Trump downplayed the possibility of a dialogue with North Korea after its latest missile test.
  • Investor Warren Buffet has joined CNBC's Becky Quick on set for  a lengthy chat.
     
     
     
    The 87-year-old has offered the following pearls of wisdom so far:
     
    • On Trump he is "Not in the business of attacking the president".
     
    • U.S. GDP is averaging about 2 percent and the U.S. does not feel like a 3 percent economy.
     
    • More certain about Apple's future than IBM's.
     
    • On Bank of America, he says he likes the business, valuation and management.
     
    • He's not concerned about Wells Fargo as an investment.
     
    • Kraft Heinz would not buy Mondelez.
  •  
    And that is European markets closed for today. On an average basis, the top 600 stocks closed higher by 0.76 percent.​
     
    Gains were fairly evenly split across the major bourses.
     
     
     
     
  • That is where will leave the blog for today.
     
    Tomorrow morning at 6 a.m. London time is when the coverage will pick up again.
     
    Things to watch for:
     
    Corporate Releases 
     
    FRANCE
    Bouygues HY
    Pernod Ricard FY
     
    GERMANY
    Metro Q3
     
    UK
    Ladbrokes Coral H1
    Hays FY 
     
    USA
    Toronto-Dominion Bank 
    Campbell Soup 
    Dollar General
    Lululemon Athletica 
     

    Economic Releases
     
    China's Manufacturing Purchasing Managers Index 
    China official Services PMI
    India Q2 GDP
    Bank of Korea rate decision
    UK consumer confidence
    German retail
    Euro zone flash inflation
     
    Until then have a lovely day!
     
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