World Markets Live - August 9 - CNBC Live Events

CNBC Live Events

World Markets Live - August 9

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

    U.S. crude stocks fall 6.45 million barrels to 475.44 million, versus a forecast draw of 2.7 million barrels, according to the latest weekly data from the EIA.
    Weekly crude imports fell 496,000 barrels per day (bpd) to 7.06 million bpd.
    Gasoline stocks grew 3.42 million barrels to 231.1 million, versus a forecast draw of 1.5 million barrels.
    Demand fore gasoline is down over the past 4 weeks to 9.76 million bpd, a drop of 0.1 percent from a year ago.
    Oil prices held gains after the data, but later pared gains and are currently flat. Gasoline futures extended losses and are down around 1 percent. 
    Good morning and thanks for looking in on the blog at this early hour! Our top stories this morning are as follows:
    • North Korea considers a strike on the U.S. territory of Guam, after President Donald Trump warns of "fire and fury" in response to further threats from the regime. This as the rogue state reportedly develops a nuclear warhead small enough to fit on a missile.
    • Safe haven assets gold and the Japanese Yen get a bid from investors seeking shelter from the latest geopolitical tensions.
    • Cord-cutting continues to hurt revenues at Disney, and now the company is cutting ties with Netflix and launching its own streaming service. CEO Bob Iger tells CNBC that global consumers are still enjoying the magic.
    • JP Morgan CEO Jamie Dimon urges Congress to push through tax reform and hits out at financial regulation.
    Stock markets in the U.S. and Europea are under pressure following rising geopolitical tensions between North Korea and the U.S.
    North Korea says it's examining plans for a missile strike on the U.S. Pacific territory of Guam.
    The latest threat comes just hours after President Trump issued his starkest warning yet to Kim Jong-Un's regime.
    North Korea best not make anymore threats to the United States. They will be met with fire and fury like the world has never seen. He has been very threatening beyond a normal statement. And as I said, they will be met with fire, fury, and frankly, power the likes of which this world has never seen before. 
    Trump: North Korea will be met with 'fire and fury'
    The U.S. President issued the warning following reports that U.S. intelligence officials believe North Korea has created a nuclear warhead small enough for a missile strike. 
    The South Korean markets and the country's currency are reflecting the increased tension.
    It should be noted that some in South Korea believe that the threat of a strike on Guam came in response, not to Trump's comments, but to U.S. bombers that carried out flights near to North Korea and have taken off from Guam.
    Gold is up more than half a percent this week as the North Korean tensions see flows exit riskier assets.
    The yen is also rallying as it is considered a safe haven.
    These prints taken at 6:15 a.m. London time.
    It's not clear why the yen would be considered a safe-haven play when it's likely in the line of fire if the North Korean tensions escalate
    One analyst says it is due to Japanese investors "reshoring" as they seek to avoid FX volatility.
    More on that story below
    ABN Amro has reported a 960 million euro underlying net profit for the second quarter.
    The second quarter ROE was a very punchy 20 percent, although that did allow for exceptions.
    The Dutch bank's CEO said the strong European economy had boosted earnings.
    Shares in ABN Amro are up around 18 percent this year. That beating the AEX index which has so far risen about 10 percent.
    European equities are set to open lower on Wednesday as geopolitical concerns curbed investor sentiment. 
    The FTSE 100 is seen off by 33 points at 7,506; the DAX is seen down by 73 points at 12,217 and the CAC 40 is set to open lower by 36 points at 5,179.
    In commodity markets, oil prices fell despite lower U.S. inventories data. Brent was down 0.22 percent at $51.92 and WTI was off by 0.16 percent at $49.01. This is due to increased doubts over OPEC and non-OPEC’s ability to fully comply with their output cut deal. 
    In the corporate world, Novo Nordisk, Ahold Delhaize and E.ON are due to report. ABN Amro has alreadty announced a 960 million Q2 net profit.

    France’s energy group Engie is reportedly in talks to purchase a wind power plant based in Brazil from Renova, according to Reuters. Elsewhere, the European Commission has approved Santander’s plans to buy Banco Popular in Spain.
    The German power utility E.ON has confirmed full year guidance after posting first half net profit of 3.87 billion euros versus a 3 billion loss a year earlier.
    The company says its net debt stood at 21.5 billion euros versus 24.75 billion a year earlier.
    E.ON has announced plans to aggressively reduce its burdensome debt pile. We speak to the company CEO later today.
    China's consumer inflation rose 1.4 percent in July from a year ago, missing estimates.
    China has set an inflation target of 3 percent for the year.
    Meanwhile thanks to a recovery in commodity fees, its producer price index rose 5.5 percent, meeting forecasts.
    The South African rand plummeted against the dollar after President Jacob Zuma narrowly survived a no confidence vote
    Almost two dozen MPs from Zuma's own party supported the motion after lawmakers were allowed to vote in secret. This is the eighth no confidence vote that Zuma has won since taking office. He will step down as party leader in December and his ex-wife is widely seen as the favorite to take his place.
    Novo Nordisk has reported first half sales of 57.1 billion Danish crowns with a profit of 20.1 billion Danish crowns.
    The company said it was on target to delivers its 2017 targets and approved an interim dividend.
    The company has warned however that it sees lower US prices in 2018.
    The Danish multinational pharmaceutical company is only up around 3 percent since January.
    Ahold Delahize has reported an income increase in its second quarter earnings.
    The Netherlands-based retailer says its net income for the quarter rose 68.2 percent to 355 million euros. Revenues for the period came in broadly in line with analyst forecasts, though net profit missed.
    This as Ahold says its merger integration is on track, with the grocer expecting 220 million euros in net synergies for the year. 
    Dick Boer, CEO of  Ahold Delhaize is on the phone. He says  the company is on track to reinvest in the business.
    He says U.S. performance is struggling as inflation remains low in the country.
    On Amazon, Boer said its a major development that the firm bought Whole Foods but he feels Ahold is well placed as it has 2,000 physical stores of its own.
    A lot of changes are happening but it is not unexpected I would say.
    Let's take the focus off these two protagonists who are shouting at each other and try to get the Chinese to take care of business in their own back yard.
    - Michael Browne, Fund Manager at Martin Currie
    Our guest host says the exchange of words between Trump and Kim Yong Un can be calmed if Beijing enters the fray with a serious statement.
    This article below highlights how tension in the Korean peninsula has been ratcheted up.
    European futures are offering a picture of sell-off as we countdown to the open of trade. Markets are reacting to the selling that took place in the U.S. and Asia after President Trump was unusually strong in his condemnation of North Korea.
    Gianluca Corradi, Head of UK Banking Practice at Simon-Kucher & Partners is on set.
    He says from a capital perspective and from the trend of impairment levels, European banks are starting to look pretty good and have stabilized themselves.
    Corradi says U.S. competitiveness in banking is ahead of European banks as U.S. firms are much more likely to access capital markets for funding.
    Corradi: European banks have been successfully deleveraging
    Corradi adds that the threat of fin-tech to bigger banks has abated as customers are so "sticky" in the respect that they are staying with their banks no matter what rivals may offer. 
    Disney shares tumbled after hours, as higher programming costs and falling subscribers at sports channel ESPN led to a 23 percent drop in cable network operating income in the third quarter.
    The world's largest entertainment company also announced it will stop supplying movies to Netflix and launch its own streaming service in 2019, in a bid to combat declining TV audience. 
    Our guest host Michael Browne says Disney removing its content from Netflix is a particularly big threat.
    He says Disney might be "arrogant" about how much sway its content might have.
    The Bank of England wants a transition period after Britain leaves the EU. Deputy Governor Sam Woods says there needs to be an implementation period to give banks time to adjust, though he didn't get specific about what kind of transition he supports.
    Sterling has popped back up over 1.30 as London traders factor in the North Korean tension currently engulfing markets.
    European markets looking like this on an individual basis.
    ABN Amro has posted an underlying net profit rise of 45 percent for the second quarter, beating analyst expectations. The CEO of the Dutch lender told CNBC his company is benefiting from a pickup in European growth.  
    Net profit at Ahold Delahize is up 68 percent in the second quarter to 355 million euros, slightly short of expectations. It says merger integration is on track. Revenues for the period came in broadly in line with analyst forecasts.
    Novo Nordisk has posted a better than expected second quarter operating profit of 13 point 39 billion Danish crowns. The drugmaker also lifted its sales forecast for the year to 1 to 3 percent growth. However, it sees lower U.S. prices in 2018 due to a negative currency impact of 3 percentage points. 
    German reinsurance giant Munich Re says it's on track to meet its full year profit after posting net profit of 733 million euros. It's seen a 25 percent drop in quarterly profit from the same time last year, but that was less severe than analysts had expected. The company's accounced it's scaled back its forecast for its health and life insurance sector from 450 million euros to 400 million euros.
    Timothy Graf, Head of Macro Strategy EMEA, State Street Global Markets joins us live and discusses trading the dollar in this market:
    Global equities have accelerated after Trump's election but they kept accelerating. The dollar has been the difference. And it is not entirely up to Trump, The U.S. fundamentals are a bit weaker, the Fed has been speaking a bit dovishly but it is a weaker barometer.
    Fed is saying they will still do three hikes, the market is saying only one. That for me is the dynamic that will resolve the dollar but I think we have to wait a little.
    Worldpay and Vantiv have agreed terms of their £8 billion merger. Worldpay said Vantiv will pay 55 pence in cash and issue 0.07 new Vantiv shares per Worldpay share. 

    The details came as the payment processing company reported a 24 percent fall in first-half pretax profit due to one-off items, but maintained its guidance for medium-term net revenue growth.
    E.ON has posted a better than expected set of first half results.
    Pointing to higher margins at its key network Swedish business as well as the German market, the energy group saw first half operating earnings fall 12 percent. The results come a day after it upgraded its dividend policy. 
    The firm is lower in trade however.
    We will hear from the company CEO in a little over an hour.
    French soldiers hit by vehicle at Paris suburb of Levallois-Perret, several injured.  
    Paris Police Authority says police operation underway at Levallois Perret, says it is looking for a vehicle. That's according to Reuters citing the France Info Radio..
    Michael Browne, Fund Manager, Martin Currie talks about the uncertainty surrounding Brexit:
    The thing about Brexit is whatever the deal is and will be presented to House of Commons, what will it pass? And there is an extremely highly likelihood that it won't pass. Because there is no majority on one side or the other for any kind whatsoever. 
    Here are the biggest movers among the European blue chips this morning.
    Here are your top news stories at this hour:
    • North Korea considers a strike on the U.S. territory of Guam, after President Donald Trump warns of "fire and fury" in response to further threats from the regime. This as the rogue state reportedly develops a nuclear warhead small enough to fit on a missile.
    • Novo Nordisk shares rise along with its sales guidance, as the Danish drugmaker posts better than expected second quarter operating profit.
    • Hard to stomach! Ahold Delhaize shares fall as the grocer misses profit expectations. But, the CEO tells CNBC the integration of its merger remains on track.
    Levallois Mayor Balkany says BMW drove into soldiers, no doubt it was a deliberate act. That's according to Reuters.
    Will Butler-Adams, Managing Director of Brompton is on set. The company makes foldable bikes that commuters use.
    It says it has manufactured 500,000 bikes and has exported to 144 countries around the world.
    Butler-Adams says cycling is a health opportunity that governments around the world should adopt.
    There is a realization that something has to change and we are part of that, but we are doing it with 30 years of experience.
    Source: Brompton
    Brompton is unveiling an electric bike in early 2018.
    He says the electric bike market is exploding in countries in Germany. He says the health benefit is even greater as users are encouraged to use the bike more often.
    A little under an hour since the start of the European trading session and stocks are trading sharply lower:
    JPMorgan Chase CEO Jamie Dimon told CNBC on Tuesday that Congress must implement tax reform to make the country more competitive.
    America is the best country on the planet. I'm a complete patriot," Dimon said in a live interview from Chicago. "It is the shining city on a hill. But we should acknowledge our problems and fix them.
     Jamie Dimon, CEO of JP Morgan Chase.
    We don't have a competitive tax system here," Dimon added. "Our tax system has become less competitive over the last 20 years. Everyone has improved theirs. We simply haven't
    NBC's Paris Producer Nancy Ing has below information from Paris' Police Headquarters:
    The Press Office of the Paris Police Prefecture confirms to NBC News six soldiers were struck by a car this morning around 8h15 [local time] in the northwest suburb of Levallois Perret as they were leaving their barracks.
    2 soldiers were injured and the 4 others were slightly injured by the car that ran into them.
    The suspect and car are on the run. There is a wide search for the vehicle.
    The press officer says, "It is not clear yet if it is a hit and run or what the intention was."
    These soldiers are part of "Operation Sentinelle" deployed after the Charlie Hebdo attacks in 2015  to patrol and protect French cities and towns. France has been under a State of Emergency following the November 13 Paris attacks that same year.
    The pan-European Stoxx 600 extends losses, down 0.7 percent:
    Yen hits eight-week high against U.S. dollar:
    President Donald Trump's "fire and fury" warning on Tuesday may contribute to mixed messages to North Korea and U.S. allies in Asia — increasing the risk of miscalculation on the Korean Peninsula, according to U.S. experts.

    National security and foreign policy experts say it is critical for the administration to maintain a consistent message on North Korea since wavering on different viewpoints risks alienating key allies South Korea and Japan.

    Increasing 'danger of miscalculation' on the Korean Peninsula, former CIA official says

    CNBCMixed messages from the administration on North Korea are contributing to unease by Asian allies and adding to risk on the Korean Peninsula.
    Nitesh Shah, Director, Commodities Strategist, at ETF Securities comments on how markets are reacting, but not panicking, over North Korea:
    Donald Trump’s latest comments targeted at North Korea have made the world nervous about the threat of nuclear war. Gold, one of the first ports of call in times of investor anxiety, is currently trading 0.56% higher at US$1268/oz. We believe continued sabre-rattling between the two nuclear powers could take gold prices higher still. There is genuine concern, hence the fall in the dollar and the rise in VIX. As ever with Trump it’s unclear how quickly the rest of the US machinery will calm him, so rises are not yet huge.
    British businesses only plan to offer modest pay rises of 2 to 3 percent despite facing increased recruitment difficulties, and uncertainty is weighing on their longer-term investment plans, the Bank of England said on Wednesday.

    Manufacturers reported higher exports and planned to meet increased demand via more automation and productivity gains, rather than by hiring extra workers, the central bank's regional agents said in a regular report.

    Consumer spending growth slowed further in the face of rising prices, with some shoppers switching to cheaper products and brands, the report added.

    It was based on conversations with businesses across Britain between June and mid-July and was considered by the BoE's top monetary policymakers last week, when they voted 6-2 to keep interest rates on hold and said the approach of Brexit was hurting growth prospects.
    Munich Re CFO member declines to provide Grenfell Tower cost estimate but says costs containable for a company like Munich Re. He says "ambition" is to stabilise profit and gradually increase profit, when asked about 2018 outlook.

    No matter what Trump says, there are still 'no good options' for US against North Korea

    CNBCWashington lacks options to peacefully rein in an aggressive Pyongyang — a stalemate that heightens the chance of military action.
    Oil rose further above $52 a barrel on Wednesday ahead of a U.S. inventory report expected to show crude stocks dropped for a sixth week, although gains were capped by doubts about compliance with OPEC-led supply cuts.

    Crude inventories last week fell by 7.8 million barrels, more than expected, but gasoline stocks rose unexpectedly, data from the American Petroleum Institute (API) showed on Tuesday before the release of Wednesday's official numbers.
    With rising geopolitical tensions abound, here's a look at who owns the world's nuclear weapons:
    Commenting on the vote of no confidence in President Jacob Zuma yesterday, Pat Thaker from the Economist Intelligence Unit said:
    The president, Jacob Zuma, survived a vote of no-confidence in the national assembly on August 8th by a margin of 198 votes to 177, although this suggests that 26 legislators from the ruling African National Congress (ANC) voted against their leader. As we had expected, Mr Zuma's fate is not settled by the no-confidence motion, but his potential failure to engineer a win for his favoured leadership contenders at December's ANC summit will have an impact. This would clearly increase the chance of his premature departure from the national presidency.
    Here are some interesting bits from Deutsche Bank strategist Jim Reid's early morning research note:
    Not a great deal but on this day 10 years ago all the major central banks were forced to inject liquidity with the ECB doing so for the first time since 9/11.
    One of the great ironies of the period since is that returns in major global assets have been very healthy albeit with some major exceptions. 
    Of the 38 major global assets we usually track for this purpose 27 are higher and 11 lower in dollar adjusted terms. Top of the pack is the S&P 500 (+106%) followed by US HY (+95%) and Gold (87%). Other DM fixed income markets are generally in the 35%-80% range. The Dax (+38%) leads the way in an underperforming European equity story. The Stoxx 600 is up 22% and the FTSE 100 only 12% higher in Dollar terms largely due to a 36% fall in Sterling over the period. Of the 11 assets that has seen negative dollar returns over the last 10 years the highlights are Greek equities (-82%), Stoxx Euro Banks (-54%), Portuguese equities (-42%), the CRB commodity index (-42%), Italian equities (-33%), and Oil (-32%). EM equities were up 29% but Chinese (-2%), Brazilian (-26%) and Russian (-32%) bourses were selective under-performers.
    German government spokeswoman says mostly up to Russia and China to avoid military escalation on Korean Peninsula. That's according to Reuters.
    Gold rose on Wednesday after North Korea said it is considering an attack on the U.S. Pacific territory of Guam just hours after President Donald Trump warned Pyongyang that any threat to the U.S. would be met with "fire and fury".

    The tensions rattled through global markets, sending investors out of equities and into the safety of the yen, Swiss franc, and government debt. The VIX "fear gauge" of expected volatility on the S&P 500 hit a near month high on Tuesday.
    Companies seeking clarity on details of Britain's exit from the European Union are likely to be disappointed until a departure deal is done, the world's largest security group, said on Wednesday.
    Unquestionably there is elevated uncertainty in the UK regarding the near-term outlook," Chief Executive Ashley Almanza told reporters. (Everyone) is waiting for clarity on how Brexit is going to affect the outlook and I think basically that we're going to know when we get there.
    He saw no specific risks to its UK business beyond that. That's according to Reuters.

    Political infighting over what Britain wants from Brexit has left businesses in the dark and helped undermine consumer sentiment, a trend that has intensified since Theresa May's Conservatives lost their outright majority in a June election.

    G4S, which provides services such as guarding, aviation screening and mobile patrols, reported first-half underlying profit up 5.9 percent and a strong new business pipeline. However its shares, which set a record high in recent weeks, fell more than 5 percent to their lowest in three months as some analysts saw signs of growth slowing.
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