World Markets Live - August 7 - CNBC Live Events
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CNBC Live Events

World Markets Live - August 7

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

  • The U.S., Japan and Australia have issued a tough statement saying the international community should strictly implement the UN resolution on North Korea.
     
    The joint statement came at the end of a meeting of foreign minister at a regional security meeting in Manila. 
     
    The three says the world should pressure North Korea to abandon its "threatening and provocative" path. They urge the international community to apply additional diplomatic and economic measures on North Korea.
     
    North Korea's Kim Jong-un
  • President Trump weighed in on North Korea, as his administration deals with speculation about his political future. NBC's Kelly O'Donnell has the latest.

  • President Donald Trump and South Korean President Moon Jae-in agreed to cooperate and apply maximum pressure and sanctions on North Korea in a telephone call on Monday, South Korea's presidential office said. 
     
    This comes as the United Nations backed fresh sanctions on North Korea, in a bid to stall missile testing.
     
    Trump tweeted to say he was pleased with the UN decision.
     
    The two leaders said North Korea poses a "grave and growing direct threat" to the U.S., South Korea Japan and other countries. They said they are to "fully implement" all UN resolutions and urge the international community to do so as well. 
     
    The new sanctions on Pyongyang could slash North Korea's $3 billion annual export revenue by a third, Reuters reports.
     
    Trump and Jae-in during a joint press conference in June
  • Good morning and welcome to World Markets Live. These are your top headlines:
     
    • Asian equities pick up, following another record close Stateside, as July's jobs number beats forecasts, and wage growth jumps the most in 5 months.
    • The United Nations slaps fresh sanctions on North Korea, in a bid to stall missile testing, while China urges restraint in the region.
    • A big Brexit bill - a new report suggests the UK could be ready to pay 40 billion euros to leave the EU, as the government's exit plan starts to take shape.
    • Tensions rise in Silicon Valley as Google moves to distance itself from an engineer's controverisal memo, suggesting biological reasons for gender inequality in tech.
    Also, here are the opening calls for Europe.
     
     
  • PostNL reports Q2 revenue increased to 836 million euros from 824 million the year before. The company says underlying cash operating income is stable at 46 million euros, down slightly from 47 million the year before.
     
    The Netherlands company says it is aiming for a progressive dividend and but due to ACM measures and developments in international markets, it expects to end the full year towards the lower end of its guidance range.
  • The U.S. added 209,000 new jobs in July, ahead of expectations. The numbers from June were revised up to 231,000. Unemployment declined a bit to 4.3 percent.
     
    The jobs data helped the U.S. markets to rise on Friday, with the Dow posting its 8th straight record close.
     
     
    Asian markets were also boosted by the Wall Street gains.
     
     
  • Google is developing technology that would allow it take on Snapchat's 'Discover' feature. That's according to a Wall Street Journal report, which suggests Google is working on new ways to allow news organisations to publish visual content through its platform. 

    Snapchat shares initially fell in response to the WSJ report, but they recovered to close Friday's session in the green. 
     
     
    Meanwhile, Google has publicly condemned a memo written by one of its employees, which argues the company has relatively few female engineers because men are better suited to the job. 

    The leaked internal document prompted a social media backlash over the weekend. The controversy comes at a time when Google is under investigation by the U.S. Labour Department for gender-based pay discrimination. 
  • U.S. Secretary of State Rex Tillerson has called on North Korea to end missile launches, saying it would be the best signal the country is ready for talks. His comments come after the U.N. backed new sanctions on North Korea. However, Tillerson would not put a timeline on when potential talks would take place.

  • Gold ended a 3 week win streak, after U.S. jobs data Friday helped push the price to its lowest in 7 days.
     
     
    Gold is in focus at the Diggers and Dealers conference, where CNBC’s Matt Taylor reports from Kalgoorlie. He says it’s a very different mood at the conference.
     
    Last year we were dealing with a record high gold price, when its price in Australian dollars was around $1700 an ounce. So that was buoying a lot of the junior and mid-cap miners. And in face the performance was reflected in the share price that for many of them was up several hundred percent for 2016.
     
    This year it’s a different story. We’ve had the Australian dollar appreciating and that’s put downward pressure on the gold price when its priced in Australian dollars. We’re down about 9.5 percent.
  • These are your top headlines for the hour:
     
    • Asian equities pick up, following another record close Stateside, as July's jobs number beats forecasts, and wage growth jumps the most in 5 months.
    • The United Nations slaps fresh sanctions on North Korea, in a bid to stall missile testing, while China urges restraint in the region.
    • A big Brexit bill - a new report suggests the UK could be ready to pay 40 billion euros to leave the EU, as the government's exit plan starts to take shape.
    • Tensions rise in Silicon Valley as Google moves to distance itself from an engineer's controverisal memo, suggesting biological reasons for gender inequality in tech.
  • FMC announces it is to acquire NxStage Medical, a medical devices producers based in Massachusetts, in a deal worth $2 billion for all outstanding shares of the company, for $30 per share.
     
    FMC expects the deal to close in 2018. The company predicts net cost synergies of around $80 to $100 million per year before tax over 3 to 5 years. Integration costs of around $150 million in the first three years are assumed. 
     
    FMC expects the deal to net income and earnings accretive within three years of closing the deal.
  • All this week, we'll be talking about the future of work: how technology and other factors are changing the workplace, and who the winners and losers will be. This hour, we focus on the employees themselves, and the robots that may take over some of their gigs.
     
    Mark Cahill, U.K. managing director at Manpower, says 65 percent of the jobs next generation of workers will be doing don’t even exist yet.
     
    We don’t know what skills, in some ways, we need for the future. I think skills is the key to all this. The more we can up-skill people, the more we individually take on that responsibility, the better for all of us.
     
     
     
  • Mark Cahill, U.K. managing director at Manpower, says that despite technological changes, jobs aren't going away. For students, he says STEM subjects (Science, Technology, Engineering, Maths) are still key to future jobs.
     
    There's the customer facing side of it, but if you go into some of the higher education areas, these are areas where we need to be thinking about maths and engineering in particular, we would argue. That will lead us into technology.
  • All week we're talking about how the workplace is changing. In this week's Trader Poll, we're asking you what workplace change you want most:
    • Fewer emails
    • Less time in meetings
    • Shorter commute
    • A new boss
    Take part in the poll by clicking on the link below.
     

    Poll: What workplace change do you want most?

    In this week's Trader Poll, tell us what kind of workplace change you want the most.
  • A federal jury has found former drug company executive Martin Shkreli guilty of two counts of securities fraud and one conspiracy count.
     
    The notorious businessman faces up to 20 years in prison, though the maximum sentence is unlikely. 
     
    Shkreli on Friday, August 4th.
  • A mysterious Chinese investor is reportedly mulling a stake in Manchester United football club. The Sunday Times says negotiators acting on behalf of an unnamed billionaire have contacted independent shareholders about a possible deal.
     
     
    The New York listed team is 80 percent owned by the Glazer family and the report suggests several Glazer children could be tempted to sell.
  • Software company Sapiens reports Q2 non-GAAP earnings per share of 4 cents. The company posted a GAAP loss per share of 7 cents.
     
    It sees full year revenue of $265 to $275 million.
     
    Q2 revenue was $69.2 million versus the IBES view of $66.1 million. This was up 30.4 percent compared to revenue of $53 million the year before.
  • Downing Street has reportedly played down claims the government is willing to pay up to 40 billion euros to settle the U.K.'s exit from the EU.
     
    Reacting to the Sunday Telegraph's report, sources speaking to the Independent newspaper say the figure was QUOTE "highly speculative and wrong." The issue of settling Britain's Brexit bill has proved a major sticking point between both sides
  • Germany's adjusted June industrial output fell 1.1 percent month on month and 2.4 percent year on year. Output was forecast to rise 0.1 percent month on month.
     
    June manufacturing output fell 1.4 percent month on month and construction was down 1 percent month on month.
     
    Germany's economy minister says production rose 1.8 percent in Q2 from Q1. It says production has picked up in the second half of the year. The minister says the upward trend in industrial production will continue.
  • Japan's Softbank reports Q1 net income of $5.52 billion yen, versus 254.16 billion yen the year before.
     
    Operating profit of 479.27 billion yen, up from 319.24 billion yen the previous year, but pretax profit fell from 356.36 billion yen to 77.57 billion yen.
     
    The company announces earnings per share of 5.07 yen from 223.55 yen the year before.
  • Tremor Video says it is to sell its buyer platform to Taptica for $50 million. It expects to close the deal by August 7.
  • More data is out today.
     
    Norway's June manufacturing output fell 0.6 percent, according to the country's statistics office.
     
    Also, Finland's June trade deficit was 65 million euros. The deficit for the first half was 1.8 billion. Exports rose 2 percent in June and are up 11 percent for January to June, according to the country's national customs office.
  • These are the top headlines for the hour.
     
    • Asian equities pick up, following another record close Stateside, as July's jobs number beats forecasts, and wage growth jumps the most in 5 months.
    • The United Nations slaps fresh sanctions on North Korea, in a bid to stall missile testing, while China urges restraint in the region.
    • Downing Street appears to play down reports the U.K. could be ready to pay 40 billion euros to leave the EU, as speculation over the Brexit bill rumbles on. 
    • Germany's Social Democrats take a blow to their election hopes, after losing their majority in Lower Saxony.
  • Russia's MMK says Q2 net profit is up 23.2 percent quarter over quarter to $297 million. Q2 EBITDA grew 0.7 percent to $455 million and Q2 revenue grew 16 percent quarter over quarter to $1.9 billion.
     
    The company says there is a seasonal uptick in domestic markets and it sees higher sales in Q3.
  • Commenting on the North Korean situation, Giles Keating, chairman of Werthstein Institute, says China’s net payments to North Korea over the last 3 years have shot up massively.
     
    That has coincided with the North Korean missile programme really taking off. I think it’s all to do with, does China carry on making payments or not? They cut coal exports, but in fact carried on buying other stuff. They are still in fact sending lots of money to North Korea, are they going to turn that down?
     
     
  • Another shirtless fishing trip for Russian President Vladimir Putin. The latest bare-chested photo shoot for the 64-year old leader captures his hunting and fishing trip in Siberia.
     
     
    Russia holds its next presidential election in March. Putin is widely expected to run and win, though he has not announced his candidacy.
  • A coalition of Social Democrats and Greens, which runs the German state of Lower Saxony has called for an early vote there.
     
    The move comes after a Green deputy defected to the Christian Democrats.
     
    It marks the latest in a series of setbacks for the SPD, just seven weeks before they take on Angela Merkel's CDU in federal elections.
     
    Leader of Germany's Social Democrat Party Martin Schulz
  • North Korea  says new UN sanctions "infringes on its sovereignty", according to Reuters citing KCNA.
     
    The country says it will never place its nuclear programme on the negotiating table unless the U.S. ends hostile policy with North Korea.
     
    CNBC's Nyshka Chandran writes that these new sanctions may increase tensions in the peninsular, as further nuclear aggression from Pyongyang and heightened tensions between Beijing and Washington are widely expected.
     
     

    North Korea sanctions could trigger more missiles and test US-China ties

    More North Korean nuclear aggression and tensions between Beijing and Washington are widely expected following the latest economic sanctions on Pyongyang.
     
  • European futures are called to open higher. This as Asia stocks pick up following Friday's better-than-expected U.S. jobs data helped stocks on Wall Street to close at fresh record highs.
     
     
  • China's foreign ministry calls on all countries to exercise restraint and make positive efforts to resolve the North Korea issue.
  • Korea Electric Power Corp. reports Q2 net income of 358.49 billion Korean won, down from 1.768 trillion won the year before. Revenue dipped from 13.275 trillion to 12.926 trillion. 
     
    Operating profit was 846.49 billion won in the second quarter, compared to 2.704 trillion won the prior year.
  • Sainsbury's is reportedly cutting over 1000 jobs at its head-office. According to the Sunday Telegraph, the British supermarket chain could save over £500 million.
     
    Last March, the British firm cut 400 jobs while reducing the working hours for thousands more employees.
     
     
  • Japan's Softbank has reported a rise in first quarter profit of 50 percent. The telecom giant saw operating profit jump after including its private equity fund as a new reportable segment. Operating profit for the quarter rose to 479.2 billion yen. Softbank has not released full-year earnings estimates, though analyst forecast 1.16 trillion yen.
     
    Oliver Matthew, head of Asia consumer research at CLSA, says Sprint has come through very strongly for the company. He says Softbank is investing in technological changes, such as ecommerce initiatives and Uber.
     
     
  • European markets open Monday's session on the backfoot, moving a little lower at the start of trade.
     
     
  • The basic resources, autos and oil & gas sectors are the best performing sectors at the start of trade. Travel & leisure and media are dragging the Stoxx 600 lower.
     
     
     
  • The Stoxx 600 is now gaining momentum and trading positively. Here's how the individual European bourses are performing at the top of Monday's session.
     
     
     
  • The Czech Republic's June industrial output rose 2.2 percent year on year, versus a forecast of 6.8 percent. It is down from May's 8.1 percent.
     
    The country's trade surplus was 18.8 billion Czech crowns, versus a forecast of 17.9 billion.
  • Giles Keating, chairman at Werthstein Institute, says the euro has gotten too strong, too fast.
     
    It’s beginning to crush profits. We saw all these downward earnings revisions. Meanwhile it is artificially kind of inflating U.S. profits. So I think correcting that will be quite a shake out on both sides.
     
    He says several analysts and companies have revised down forward looking earnings outlook in Europe.
     
     
     
  • Switzerland's consumer prices index fell 0.3 percent month on month in July and rose 0.3 percent year over year, matching forecasts.
     
    This after the Swiss National Bank reports currency reserves have risen from 693.7 billion francs in June to 714.3 billion in July.
  • BMW is confident that investigators probing reports of collusion among German carmakers will find the allegations hard to justify, that's according to Reuters.

    Separately, BMW's CEO has called on foreign carmakers to contribute to a proposed German fund set up to improve urban transport infrastructure.

    The German government and the country's carmakers reached a deal last week to reduce pollution and avert a ban on diesel engines. 
     
     
  • Daniel Morris, senior investment strategist at BNP Paribas, discusses the lack of wage growth in the U.S. and says the reason it is disappointing is economists are looking at the wrong number.
     
    Economists talk about the NAIRU (non-accelerating inflation rate of unemployment) this magical level of the unemployment rate where wages should go up.  The models will say it is about where we are today and so don’t understand why it’s happening.  But if you had a number focused around the U6, the underemployment number, instead of the unemployment, then it’s not so mysterious.
     
     
     
  • These are the main news headlines following the open of European markets.
     
    • European equities follow Asian stocks higher after another record close Stateside, as July's jobs number there beats forecasts.
    • Failing to deliver! Post NL shares fall as the Dutch mailing company warns new regulatory changes will hurt full-year profits.
    • German industrial output unexpectedly falls for the first time this year.
    • This as the Social Democrats suffer their own blow, losing their majority in Lower Saxony.
  • U.K. house prices grew 0.4 percent month on month in July and 2.1 percent in the three months to July. That compares to expectations of 0.2 percent and 2 percent respectively. The data is from Halifax.
  • South Africa's unemployment rate is at 27.7 percent in Q2, unchanged from the previous quarter.
     
    The total number of unemployed was 6.177 million people in Q2. This is down from 6.214 million in Q1.
  • All this week, we'll be talking about the future of work: how technology and other factors are changing the workplace, and who the winners and losers will be. This hour, we focus on how digital technology is changing working habits.
     
    Tom Redmayne, director of business development for U.K. and Ireland at Wiredscore.com, says we’ll always need an office for work, even with digital devices offering an alternative.
     
    I think the serendipitous interactions you get from working with colleagues in your business and with your partners make such a difference.
     
    He says with colleagues overseas using audio-visual tools is good but never the same as working with people in a room around a white board.
     
    Employers today need to create an environment that attracts talent and allows them to grow and be happy there.
     
     
  • Oil prices are easing today, as rising output from OPEC weighes, but the crude price remains near multi-week highs.
     
     
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