World Markets Live - August 3 - CNBC Live Events
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World Markets Live - August 3

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

  • Good morning. Here's your morning call from IG:
     
    Opening Calls – IG – (03.47) 
    FTSE      7,403       +3
    CAC       5,108       +4
    DAX      12,171      -2
    MIB      21,569      +8
     
  • Here are your top stories at this hour:
     
    • The Dow tops 22-thousand, with Boeing contributing much of the latest leg upward and Apple providing the final push. But the cheers die down in Asia, where stocks are trading lower.
    • 'Ready for production hell!' Tesla shares jump, as the electric carmaker doubles its revenues in the latest quarter and CEO Elon Musk says he's ready to meet demand for the Model 3
    • Trump takes on the world. The US president reportedly prepares to open an inquiry into China's trade practices, after he signs a bipartisan bill to impose fresh sanctions on Russia. 
    • The Sterling hits the highest level against the dollar in nearly a year as investors prepare for the Bank of England's Super Thursday, with the MPC expected to narrowly vote to keep rates on hold. 
  • Siemens Q3 orders fell 9 percent to 19.8 billion vs Reuters forecast of 21.4 billion. 
     
    The German industrial group plans an initial public offering of its healthcare unit, expected to value the business at up to 40 billion euros ($47 billion), in the first half of 2018, it said in a statement on Thursday.
  • Deutsche Telekom says Q2 core profit up 8.9 percent at 5.94 billion euros vs above Reuters poll range of 5.63 billion - 5.89 billion. 
  • Credit Agricole Q2 revenue 4.71 billion euros vs 4.7 billion euros. Q2 net profit reported at 1.35 billion euros. The company says Q2 net income up 17 percent at 1.35 billion, Q2 revenue down 0.6 percent. That's according to Reuters.
  • Tesla reported a narrower loss than expected in its second quarter results. The electric car maker posted a beat on revenue, which climbed to 2-point-8 billion dollars, up from 1.3 a year ago. Speaking on the conference call, Tesla CEO Elon Musk tried to ease investor concerns about production, saying the firm was on track to achieve a "10-thousand unit production week" by the end of 2018. 

    Shares of Tesla rose around eight percent in after-hours trade. 
     
     
     

     
  • The Dow Jones industrial average notched another milestone on Wednesday, breaking above 22,000 for the first time.

    The 30-stock index rose 52.32 points to close at 22,16.24 with a boost from Apple's stock, which surged 4.73 percent after posting quarterly results that blew expectations out of the water.
     
    Here's a look at the performance of three major indexes this year:
     
     
  • Here are your top news stories at this hour:
     
    • The Dow tops 22-thousand, with Boeing contributing much of the latest leg upward, and Apple providing the final push. But the cheers die down in Asia, where stocks trade lower. 
    • 'Ready for production hell!' Tesla shares jump, as the electric carmaker doubles its revenues in the latest quarter and CEO Elon Musk says he's ready to meet demand for the Model 3.
    • Solid U.S. results boost second quarter profits at Deutsche Telekom, helping the German telco nudge up its outlook for 2017. 
    • Siemens sees orders slide in the third quarter, missing expectations. Third quarter orders at industrial giant Siemens slide in the third quarter, as sales rise 3 percent but still miss analyst forecasts. 
       
  • BMW Q2 Group well on track for 100,000 electrified vehicles in 2017. The company reports Q2 revenue at 26.05 billion euros. 
  • President Trump is getting some rare bipartisan backing as he prepares to order an investigation into Chinese trade practices.
     
    Senate Democratic leader Chuck Schumer supports going after China, and says the U.S. should skip the investigation and move straight to taking action against Beijing. Trump is expected to issue a presidential memo on the matter within days.
     
  • The average pay for FTSE 100 CEOs fell 17 percent last year, according to a new study from the High Pay Centre. That decline was mostly driven at the top end, in particular by Sir Martin Sorrell, CEO of WPP, whose pay package dropped from more than 70 million in 2015 down to 48 million pounds last year.
     
    Also topping the list of highest paid CEOs were Carnival's Arnold Donald, who brought in more than 22 million pounds, followed by Reckitt Benckiser CEO Rakesh Kappor, who earned nearly 17 million pounds. 
     
  • Veon saw a double digit increase in EBITDA for the second quarter. But the telecommunications company posted a wider loss for the period, hit by impairments and a loss at its Italian joint venture. Joining us now is CEO Jean-Yves Charlier:
     
    Most of the markets we operate in are by definition mobile markets and there is very little on fixed infrastructure. That's what makes these frontier markets exciting for Veon as a group.
     
     
     
  • Here are your top news stories at this hour:
     
    • The Dow tops 22-thousand, with Boeing contributing much of the latest leg upward, and Apple providing the final push. But the cheers die down in Asia, where stocks trade lower. 
    • Solid U.S. results boost second quarter profits at Deutsche Telekom, helping the German telco nudge up its outlook for 2017. 
    • Scoring in North America and China, Adidas posts a 26 and 28 percent in the markets respectively, after raising its 2017 guidance. We'll speak FIRST with the CEO of Adidas Kasper Rorsted at 12:25 CET. 
    • Siemens sees orders slide in the third quarter, missing expectations. Third quarter orders at industrial giant Siemens slide in the third quarter, as sales rise 3 percent but still miss analyst forecasts. 
  • London Stock Exchange reports H1 revenue up 18 percent to £853 million. The group reports H1 adjusted operating profit up 20 percent at £398 million. That's according to Reuters.
  • A key economic report due out Thursday morning could be the true tell for Friday's jobs number.

    The Institute for Supply Management is set to release its non-manufacturing data Thursday shortly after the opening bell, and economists are expecting a reading of 56.9, which comes in lower than last month's figure of 57.4. Generally, a reading above 50 indicates the non-manufacturing economy is generally expanding, and below 50 typically indicates contraction.
     

    This key economic report could trigger a sell-off in equities

    CNBCA key economic report out Thursday morning could be the true tell for Friday's jobs number.
  • Merck has lowered its 2017 sales guidance after posting second quarter earnings which came in just shy of consensus estimates. The firm cited adverse currency moves for the guidance downgrade.
     
    Joining us on the phone from Darmstadt is Marcus Kuhnert, the CFO of Merck
     
    The major part of the slight tickback in the forward guidance is due to more adverse currency movements that we expect to happen in the second half of the year. So this is especially coming from weakening US dollar and also some emerging market currencies that come in a bit weaker than we had expected at the start of the year.
     
  • Here are your top headlines at this hour:
     
    • Solid U.S. results boost second quarter profits at Deutsche Telekom, helping the German telco nudge up its outlook for 2017. 
    • Adidas scores in North America and China, posting double digit gains in those markets, after lifting its 2017 guidance. We'll speak FIRST with the CEO Kasper Rorsted at 12:25 CET. 
    • Siemens sees orders slide more than expected in the third quarter. But its Healthineers unit helps the industrial giant beat bottom line forecasts. 
    • LSE clears the air after its failed merger with Deutsche Boerse, posting a near 20 percent rise in first half profits, pumped up by solid performance from its clearing and index businesses.
       
  • Credit Agricole's net income rose 17 percent in the second quarter, topping analyst estimates. Improving activity in core markets France and Italy, along with cost-cutting measures at the bank helped to lift results.
     
    Jérôme Grivet, Deputy Managing Director, Group Finance at Credit Agricole joins us live to discuss the performance:
     
    Globally the economy is improving in our main markets, namely France and Italy. We are confident that we are on track to reach financial targets for our medium term for 2019.
     
     
    No specific worry and I think normalization of the monetary policy in the US and Europe is going to be a slow move.
     
  • European bourses are expected to open mixed on Thursday morning, as investors monitor further earnings reports and react to the Dow Jones industrial average breaking the 22,000 barrier for the first time in its 121-year history.
     
     
  • Brazilian President Michel Temer has survived a congressional vote that could have triggered a trial that could have ejected him from office. The centre-right politician stands accused of taking bribes from meat-packing firm JBS. He denies any wrongdoing. 
     
    Scuffles broke out on the floor of Brazil's Congress ahead of the vote, while protestors outside the building called for the President's resignation.
     
    Following the vote, President Temer vowed to remain in his role and push ahead with reforms. 
     
    With such an eloquent decision I can say now, we will move forward taking the necessary action to finish the work that my government started a little bit more than one year ago. We are pulling Brazil out of the most serious economic crisis in our history. Even when it sounds repetitive, I say that it's urgent to put the country on the path of growth
     
     Michel Temer Passes a Law On Price Differentiation : News Photo
  • European stocks are now open for trading. The pan-European Stoxx 600 has opened fairly flat:
     
     
  • Major European indexes turn negative at open as Dow highs fails to inspire other stock markets:
     
     
  • Let's take a look at the best and the worst performing stocks this morning:
     
     
     
  • Siemens shares under pressure after it reported a 9 percent slide in orders and missed third-quarter earnings forecast. The German company also said it expects to list its medical technology unit Healthineers in the first half of 2018. 
     
     
  • A surge in 5-series and motorcycle sales helped BMW beat second-quarter profit expectations.This despite seeing weaker demand for luxury cars in the US. BMW confirmed its full year guidance for a slight rise in pre-tax profit.  
     
     
  • Continental posted a decline in second-quarter earnings, hit by higher spending on R&D and production capacity.  But the automotive supplier slightly raised its sales outlook for the year, thanks to growing demand for electric car components.
     
     
  • Unicredit has posted a sharp increase in second quarter net profit, boosted by lower costs and a decline in charges for loan losses. The results come as Unicredit undertakes a restructuring plan, involving thousands of job cuts and a 13 billion euro capital increase. Italy's largest bank said its capital ratio stood at 12.8 percent at the end of June. 
     
     
  • Credit Agricole's net income rose 17 percent in the second quarter, topping analyst estimates. Improving activity in core markets France and Italy, along with cost-cutting measures at the bank helped to lift results. Speaking to CNBC the bank's Deputy Managing Director Jérôme Grivet said the company is on track to meet its medium term financial targets.
     
     
  • Second quarter sales at Adidas rose 19 percent, boosted by strong performance in China and North America. The German sportswear giant said it doubled its market share in the U.S. sport footwear market to nearly 3 percent, further signs Adidas is taking market share from Nike and Under Armour. 
     
     
  • Next sales returned to growth in the second quarter. The British clothing retailer said full price sales rose 0.7 percent from last year, driven by strength in its Directory business.

    Next kept its profit guidance unchanged, but narrowly lifted its sales forecast by half a percentage point.
     
     
  • Spain's all-important services sector expanded at a solid rate in July and firms continued to take on staff, although the pace of growth was slightly weaker than a month earlier, a survey published on Thursday showed.

    Markit's Purchasing Managers' Index (PMI) of service companies stood at 57.6 in July, compared to 58.3 in June, which had been the highest reading in almost two years. That's according to Reuters.
  • Merck has lowered its 2017 sales guidance after posting second quarter earnings which came in just shy of consensus estimates. The firm cited adverse currency moves for the guidance downgrade. However, Merck says its remains on track to meet its full year earnings targets. 
     
     
  • Stada posted a 22 percent decline in its its second-quarter net income and said currency moves and higher marketing expenses are likely to impact its next set of earnings. Last month, the board of the pharma company urged shareholders to accept a takeover offer by Nidda Healthcare.
     
     
     
  • The London Stock exchange posted an almost 20-percent rise in profits in the first half. This was on the back of a strong performance of its clearing unit and its FTSE Russell indexes business. LSE is now exploring new avenues for growth after the collapse of its proposed merger with Deutsche Boerse.
     
     
  • AXA has reported a rise in first half profits and revenues, beating forecasts. Net income rose 2 percent while revenues increased half a percent, helped in part by lower restructuring costs. Europe's second largest insurer said it is confident of meeting it's 2020 targets which involve cost savings of 2.1 billion euros. 
     
     
  • James Butterfill, head of research & investment strategy at ETF Securities, says dollar weakness will hurt European corporate earnings.
     
    The problem is where do you shift from? Because shifting into U.S. equities, they are already exceptionally high in valuations. I actually think it’s more likely investors will shift towards emerging markets or certain sectors such as the mining sector, where valuations are more attractive.
     
    Butterfill adds that we won’t see the same taper tantrum in markets as we saw in 2013 and investors are starting to see fundamentals as more attractive.
     
     
  • Here are your top stories at this hour:
     
    • Next shares surge to the top of the Stoxx 600, after the British clothing retailer returns to sales growth and narrowly bumps up its guidance.
    • A mixed picture for European banks as shares of Unicredit surge on stronger-than-expected profit for the second quarter. This is as French lender Credit Argicole slides as concerns over one-off items in its second quarter results weigh. The company's CFO tells CNBC the bank is in good shape. 
    • Adidas scores in North America and China, posting double digit gains in those markets, after lifting its 2017 guidance. 
    • Siemens sees orders slide more than expected in the third quarter. But its Healthineers unit helps the industrial giant beat bottom line forecasts. 
       
  • Rosneft CEO says new U.S. sanctions will have negative consequences for U.S. he says will act to minimize negative impact of U.S. sanctions. That's according to Reuters.
  • The average pay for FTSE 100 CEOs fell 17 percent last year, according to a new study from the High Pay Centre.
     
    That decline was mostly driven at the top end, in particular by Sir Martin Sorrell, CEO of WPP, whose pay package dropped from more than £70 million in 2015 down to £48 million last year. Also topping the list of highest paid CEOs were Carnival's Arnold Donald, who brought in more than £22 million, followed by Reckitt Benckiser CEO Rakesh Kappor, who earned nearly £17 million.
     
    Stefan Stern, director at the High Pay Centre, says the gap has been growing for 20 years between CEO pay and the rest of the workforce.
     
    That’s created tensions and political pressures, which I think some of these boards have responded to in the last year or so.
     
    Stern says what will happen to pay in the future is less certain due to government warnings to introduce policy on CEO compensation.
     
     
  • Stefan Stern, director at the High Pay Centre, says extraordinary high pay is a systemic problem and proposals need to address it as a whole, not just tweak one or two areas.
     
    Companies in the end have got to choose, along with their shareholders, to restrain pay at the top. I think the pay ratio mechanism would help, I think transparency would lead to some shocks in the first instance but would concentrate minds and maintain the pressure that does seem to have worked in the past 12 months.
  • Italy's service sector posted its fastest growth for a decade in July, a survey showed on Thursday, boosting prospects for economic output in the euro zone's third-largest economy.

    The Markit/ADACI Business Activity Index (PMI) for services companies leapt to 56.3 from 53.6 the month before, well clear of the 50 mark that separates growth from contraction.

    The index beat all forecasts in a Reuters survey of eight analysts, which pointed to a reading of 54.1. That's according to Reuters.
  • Andrew Sheets, chief cross-asset strategist at Morgan Stanley, says there are political and social angles to high corporate pay, as well as the economic angle.
     
    The question is what do we want society to look like, but there’s also a financial angle. Do these salaries make sense? Do they add value to the shareholders? Do they add value to the bottom line? Are they worth it?
     
    Sheets says asset owners have become much more involved on this issue and others over the past 24 months. He says investor pressure will be the more effective mechanism for addressing the issue.
     
     
  • The French private sector grew more slowly in July than in the previous month, a survey showed on Thursday, but strong readings for employment and business confidence pointed to continued growth in the future.

    IHS Markit's Purchasing Managers' Index (PMI) for the services sector edged down to 56.0 from June's 56.9, marginally better than a preliminary reading of 55.9 and comfortably above the 50-point threshold dividing expansion from contraction.

    The overall PMI index, which includes services and manufacturing, slipped to 55.6 from 56.6 in June. It stood just below the preliminary 55.7. That's according to Reuters.
  • Activity in Germany's services sector slowed to a 10-month low in July, a survey showed on Thursday, limiting overall private sector growth in Europe's biggest economy at the start of the third quarter.

    Markit's final composite Purchasing Managers' Index (PMI), which tracks the manufacturing and services sectors that account for more than two-thirds of the economy, fell to 54.7 from 56.4 in June.

    The reading remained well above the 50 line that separates growth from contraction but was lower than a preliminary estimate of 55.1 published last month. That's according to Reuters.
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