World Markets Live - August 8 - CNBC Live Events
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CNBC Live Events

World Markets Live - August 8

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

  • Trade data from China disappoints, with July imports and exports missing expectations. The country maintained a healthy surplus with the U.S. of $25.2 billion.
     
    The data came in below expectations for July. Exports rose over 7 percent, while imports grew 11 percent in dollar terms, both well below forecasts of 10 percent and 16 percent growth respectively.

    That left the country with a trade surplus of nearly $47 billion for the month. Asian stock markets deflated on the data.
     

    China's international trade grows less than expected, surplus with US dips

    CNBCChina reports July trade data after 10 a.m. SIN/HK.
     
  • These are the top headlines overnight.
     
    • Trade data from China disappoints, with July imports and exports missing expectations. But the country maintains a healthy surplus with the U.S.
    • China's foreign minister says his country will bear the main cost of new UN sanctions on North Korea because of their economic ties. But he says Beijing is willing to pay the price for peace.
    • Oil prices slip as higher output from Libya fuels doubts about OPEC-led production cuts.
    • A former Google engineer says he's exploring legal remedies, after getting fired for writing a controversial memo on gender inequality.
     
    Here are the opening calls for European markets. The FTSE, DAX and CAC are seen opening lower.
     
     
  • Deutsche Post reports Q2 revenue of 14.8 billion euros, an increase of 4.4 percent. Operating profit was up 11.8 percent to 841 million euros.
     
    The company says it is maintaining its forecast of an average increase in operating profit of more than 8 percent annually during the the period from 2013 to 2020.
  • Asian stock markets deflated on the disappointing Chinese trade data, which cast doubts on the global economic growth and the commodity market.
     
     
  • Cliff Tan, East Asian head of global markets research at MUFG, says the July trade data from China indicates a slowdown in momentum in the country.
     
    We try to look at both prices and volumes. And because prices have been rising very aggressively we’re not sure the growth is much to do with volumes.
     
    China’s growth numbers are very important for the world. What we’ve seen with the world this year is a pick-up in trade growth which we haven’t seen in several years. And if China flags that’s a problem for the rest of the world as well.
     
     
  • Uniper has adjusted its EBIT outlook from 0.9 to 1.2 billion euros to 1 billion to 1.2 billion euros. 
     
    It also increased its dividend guidance. It sees a 25 percent dividend growth to 250 million euros compared to the fiscal year 2016. It had previously guided a dividend rise of 15 percent.
  • Dutch July inflation grew 1.3 percent year on year, up from 1.1 percent in June, according to CBS.
  • China's iron ore imports fell by 2.4 percent in July from a year earlier. According to figures by the General Administration of Customs Data, iron ore imports slipped to 86.25 million tonnes.
     
    Meanwhile, iron ore shipments to China from Australia's Port Hedland, which is used by top miners like BHP and Fortescue, dropped 12 percent in July.
     
    CNBC’s Matt Taylor is at the Diggers and Dealers Conference in Kalgoorlie. Matt spoke to the CEO of Fortescue who says a pullback could be good for pricing if it reduces the pace of stockpiling of iron ore.
     
    That of course has been one issue canvassed here at Diggers and Dealers, the outlook for China. So many of the companies speaking here are dependent on that strong growth outlook out of China to import their goods.
     
    Australian stock markets fell after the Chinese trade data was released. The aussie dollar is a little stronger today.
     
     
     
  • Google has fired the employee whose memo argued there are fewer women in the tech industry because of biological differences. Engineer James Damore says he's exploring possible legal remedies.
     
    In a company wide note, Google CEO Sundar Pichai said the views expressed violated the company's code of conduct by advancing gender stereotypes.
     
     
  • Citigroup will pay $130 million to settle a Libor-rigging lawsuit in the U.S. The bank didn't admit wrongdoing in settling the private suit.
     
    British lender Barclays reached a similar agreement in 2015 for $120 million.
  • Oil prices remain under pressure this morning. Prices for crude fell yesterday on news that Libya's Sharara field was returning to normal production.
     
    The rebound in Libyan oil production is causing concerns that it will undermine efforts by OPEC to reduce output and rebalance the market.
     
     
  • German energy firm Uniper reports first half sales up 11 percent to 37.31 billion euros. Net profit was 967 million euros. Adjusted EBIT for H1 was down 18.1 percent at 930 million euros.
     
    The company reduced economic debt to 3.3 billion euros at the end of June from 4.2 billion euros at the end of December.
     
    The company says marking to market of commodity derivatives resulted in a positive earnings effect of 446 million euros.
  • The Dow Jones managed to achieve a 9th consecutive record close in yesterday's session. The U.S. stock markets continued to grow, with the Nasdaq up half a percent.
     
     
  • Pandora reports 12 percent revenue growth and 10 percent like for like sales growth in Q2.
     
    Revenue for the quarter was 4.83 billion Danish krona. This was below the 4.9 billion seen by analysts.
     
    The company says the retail environment in the U.S. remains challenging, whereas markets like China, Italy, the U.K. and Australia performed well.
  • All this week, CNBC will be talking about the future of work: how technology and how other factors are changing the workplace.
     
    Frank Calderoni, CEO of Anaplan, is working to drive a new era of connected planning, competing with the likes of Oracle and IBM.
     
    Connective planning is really just getting people in large organizations to be aligned in how they have information so they are making better, more intelligent decisions.
     
    Many companies have a challenge because there are so many people and in the past they’ve used spreadsheets, and spreadsheets are very much to one person. Anaplan, because its software in the cloud, allows many people to have the same access to the information so they are making real time decisions. And allows companies to connect how those decisions are made along a process.
     
     
     
  • 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
     

    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.
     
  • Switzerland's adjusted jobless rate is 3.2 percent in July, unchanged from June. The unadjusted jobless rate is 3 percent, also unchanged from the previous month.
  • Tesla seeks to raise $1.5 billion in a junk bond offering, to fund production of its Model 3. This will be the first time the electric car maker has issued junk debt.

    Shares in Tesla have risen sharply this year, driving its market cap above both Ford and General Motors.
     
     
  • Netflix has bought comics publishing giant Millarworld, as it beefs up its library with a set of comic book characters.
     
    Run by Scottish writer Mark Millar, the company is behind titles like "Wanted," "Kick-Ass" and "Kingsman," which were adapted into movies that have made nearly a billion dollars worldwide. The latter two are not part of the deal.
     
    This is the first time Netflix has acquired a company in its 20 year history.
     
    Scottish comic book writer Mark Millar
  • U.K. retail sales growth slowed in July but an uptick in food prices propped up grocery sales. Overall sales rose 2.3 percent year-on-year, however non-food sales shrank by 0.7 percent. The data suggests families cut back their spending on clothing and household appliances as rising food prices started to bite.
     
     
    Meanwhile, British companies are hiring staff via recruitment agencies at the fastest pace in two years, but they're worried about finding staff in the future, because of Brexit concerns.
     
    A new report from the Recruitment and Employment Confederation says Britain's exit from the EU could worsen staffing shortages in certain sectors, in both high-skill and entry level positions.
  • European Union chief executives are increasingly positive about business prospects in the bloc. That's according to a report from the executive platform YPO.
     
    Its survey of more than a thousand CEOs found recent political stability made executives more bullish over growth prospects in the second quarter of this year.
     
    The YPO index rose to the highest level in its eight-year history, led by a sharp jump in France.
     
     
  • Here are the top headlines for the hour.
     
    • Trade data from China disappoints, with July imports and exports missing expectations. But the country maintains a healthy surplus with the U.S.
    • Special delivery for Deutsche Post! The logistics company beats operating profit expectations, thanks to a surge in its Express business.
    • A former Google engineer says he's exploring legal remedies, after getting fired for writing a controversial memo on gender inequality.
    • Standard Life reports its latest earnings.
  • Standard Life reports interim dividend growth of 8.2 percent to 7 pence per share.
     
    Assets under administration increased 1 percent to £361.9 billion. Pretax profit for H1 was £362 million, on revenue of £7.4 billion.
  • German June seasonally adjusted exports falls 2.8 percent month on month, while imports fell 4.5 percent, according to the country's statistics office.
     
    The country's trade surplus is 21.2 billion euros, versus a forecast of 21.4 billion. Germany's current account surplus is 23.6 billion versus a forecast of 24.2 billion.
  • Paddy Power Betfair reports first half revenue of £827 million. H1 EBITDA was £214.5 million, with operating profit of £104.3 million.
     
    Online revenue grew 10 percent in the first half. The bookmaker says strong Q1 growth was driven by more favourable Cheltenham horse racing results, with Q2 affected by the absence of a major football tournament and adverse sports results.
     
    It says the industry remains highly competitive and exposed to external factors such as the economic and regulatory environment.
  • Keith Skeoch, CEO of Standard Life, says the logic behind the planned merger with Aberdeen Asset Management is compelling.
    It’s all about two things: scale and diversification. This will create a U.K. asset management champion.
     
    Scale though is all about improving choice for customers because we have complimentary skill sets, we have complimentary clients, we operate in complimentary channels. Actually what that will do is generate much greater opportunity for our people and allow us to continue to grow the business by investing in innovation, investing in people and generating growth.
     
     
     
  • Keith Skeoch, CEO of Standard Life, says he is quite concerned about Brexit and its impact on markets.
     
    From a business perspective it’s absolutely clear to me that you’ve got to get your contingency plans in place. No matter what anybody is saying, plan for a “hard Brexit” and that’s what we’re doing. We know what we need to do. 
     
    The biggest issue here is uncertainty and as long as uncertainty persists, and it seems to me the politicians are changing their mind every other week rather than every other month, that is actually what causes issues for business.
  • Intercontinental Hotels Group reports first half revenue of $857 million up from $838 million a year ago. Operating profit was $370 million and the company raises its dividend to 33 cents versus 30 cents.
     
    The company says they are on track to begin the roll out of a cloud-based guest reservation system in late 2017. It says it remains confident in the outlook for 2017.
  • Global Blue, the VAT refund company is gearing up for a flotation, according to reports. The company, which pioneered the concept of tax free shopping would be valued at over £3 billion.
     
    It's understood that it will list on a European stock exchange but a location has not been confirmed yet. 
  • About half an hour until the opening of European markets and the major markets of the U.K, Germany and France are called to move lower at the start of Tuesday's session, according to future values.
     
     
  • Here are the top headlines ahead of the market open.
     
    • Standard Life tops profit expectations as it edges closer to its merger with Aberdeen. The CEO tells CNBC signs look good ahead of the tie-up.
    • Special delivery for Deutsche Post! The logistics company beats operating profit expectations, thanks to a surge in its Express business.
    • Trade data from China disappoints, with July imports and exports missing expectations. But the country maintains a healthy surplus with the U.S.
    • A former Google engineer says he's exploring legal remedies, after getting fired for writing a controversial memo on gender inequality.
  • Tune in to CNBC today at 17:30 CET for an exclusive interview with JP Morgan CEO Jamie Dimon. 
     
     
  • St Louis Fed president James Bullard says interest rates can stay where they are for now.
     
    At a speech in Tennessee, Bullard said that although the U.S. jobs market has shown signs of improvement, inflation is under control. Bullard does not have a vote on monetary policy during this Fed term. 
     
  • Standard Life has posted a 6 percent rise in first half profit, topping expectations. The insurer's operating profit before tax for the period rose to £362 million, while its assets under administration rose to £362 billion.
     
    This comes as Standard nears completing an £11 billion merger with Aberdeen Asset Management. Earlier, Standard Life's CEO Keith Skeoch told CNBC that signs look good ahead of the tie-up.
     
     
    Earlier, Deutsche Post DHL reported better-than-expected second-quarter profit, driven by strength at its Express delivery business.
     
    Operating profit rose 12 percent to 841 million euros, helping the German mail and logistics company to reaffirm its full-year targets.

    Deutsche Post DHL says it saw no material impact from the cyber attack in Ukraine at the end of June, but has seen higher volumes this quarter as rivals deal with the effects of the attack.
     
     
  • The French trade deficit at end of June was 4.7 billion euros versus a revised 4.4 billion euros a year earlier, according to the country's customs office.
     
    France's budget deficit was 62.3 billion euros, from 61.8 billion a year earlier, according to the country's finance ministry.
  • The rand edged higher against the dollar after the announcement that South African lawmakers would be allowed to vote in secret on a motion of no-confidence in President Zuma. 

    The secret ballot is seen as making it more likely Zuma will have to step down. He has had a rocky term, with corruption allegations and questions about his management of the economy.
     
     
    Meanwhile, the United States is reportedly preparing sanctions against more Venezuelan officials close to President Nicolas Maduro. However, it's not expected to involve penalties on the Venezuelan oil sector.
  • Tata Motors reports global wholesale in July of 98,534 net outside sales (NOS), up 12 percent from the year before.
     
    Global sales  of all passenger vehicles was 66,508, up 15 percent year on year. Sales of Jaguar Land Rovers were 51,425 vehicles. 
  • European markets open flat, edging to the downside.
     
     
  • Only utilities, autos and the oil & gas sectors are trading positively at the start of trade.
     
    Basic resources is dragging on the Stoxx 600, likely because the disappointing Chinese trade data is a negative sign for commodities demand.
     
     
     
  • The Czech Republic's jobless rate rises to 4.1 percent in July from 4.0 percent in June. This matched the market forecast.
     
    Hungary's CPI inflation rises 2.1 percent year on year, matching expectations. The country's preliminary reading of June trade balance is 1.06 billion euros, versus a forecast of 1.08 billion euros.
  • The Stoxx 600 is now down about 0.11 percent. Here's a look at the individual major European bourses.
     
     
     
  • Jim McCaughan, CEO of Principal Global Investors, discusses the valuations of assets in markets.
     
    The valuation of everything is higher than it was. Some would say that’s a bubble. I would say that the structural excess of savings over capital investment in the world economy means that valuations should be structurally high.
     
    He also says interest rates are unlikely to return to “normal” levels of 4 percent or more, due to structural changes caused by technology and demographics.
     
    Aging demographics are deflationary, because people who get older buy experiences not stuff. So in terms of the oversupply of manufacturing and commodities, aging demographics are deflationary.
     
    Another issue is technology is leading to more efficient use of capital, that’s why capital spending is below savings, which is driving up valuations.
     
     
  • These are the stocks moving markets this morning:
     
    • Standard Life has posted a 6 percent rise in first half profit, topping expectations. The insurer's operating profit before tax for the period rose to £362 million, while its assets under administration rose to £362 billion. This comes as Standard nears completing an £11 billion merger with Aberdeen Asset Management. Earlier, Standard Life CEO Keith Skeoch also told CNBC where the company is thinking of setting up shop after Brexit.
    • Deutsche Post DHL has reported better-than-expected second-quarter profit, driven by strength at its Express delivery business. Operating profit rose 12 percent ro 841 million euros, helping the German mail and logistics company to reaffirm its full-year targets. Deutsche Post DHL says it saw no material impact from the cyber attack in Ukraine at the end of June, but has seen higher volumes this quarter as rivals deal with the effects of the attack.
     
     
    • Intercontinental Hotel Group has reported a slower global rooms revenue growth for the second quarter. Revenue per available room grew 1.5 percent, down from 2.7 percent in the first quarter. It cited a decline in U.S. growth due to a later Easter this year.
    • Uniper has raised both its dividend and operating profit outlook for 2017. The power plant and energry trading group, which was spun off from E.ON last year sees dividends rising by 25 percent for the year. It now sees earnings before interest and tax of £1 to £1.2 billion, up from previous forecasts.
  • Chris Wyllie, chief investment officer at Connor Broadley, says his firm likes gold compared to government bonds and index-linked bonds, seeing it as an inflation hedge.
     
    The relationship really seems to be with real interest rates. Gold tends to do well when real interest rates are negative or zero, which is exactly what we’ve got at the moment.
     
    Gold has gone to sleep in the last few years. I think a lot of speculative money has gone out of it and people are wondering if inflation is going to return.
     
    He predicts interest rates will remain very subdued, which will support gold.
     
     
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