World Markets Live - July 10 - CNBC Live Events
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CNBC Live Events

World Markets Live - July 10

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

  • Good morning everyone. Welcome to a new week. The much awaited G-20 summit came to a close over the weekend with all leaders agreeing to the communique. The much speculated Trump-Putin meeting took place with both leaders agreeing to cooperate on various grounds. Markets, however, haven't been the most impacted by these events. European futures this morning look set for a strong start as investors eye a flurry of earnings this week. Here are your morning futures from IG index:
     
     
  • Here are your top news stories at this hour:
     
    • Asian stocks begin the week firmly in the green, picking up from a bullish session stateside, following stronger than expected non-farm payrolls data.
    • The CEO of UBS Sergio Ermotti tells CNBC in an exclusive interview that some of the weak players in the European banking sector still need to be addressed, as he says a bailout of Italy's failing lenders was inevitable.
    • "I didn't mean it!" President Donald Trump proposes and then plays down the creation of a US-Russian cyber security unit, after finally meeting his Russian counterpart Vladimir Putin at the G20
    • The Qatari Central Bank governor touts its 40 billion dollar cash reserves, as he tells CNBC exclusively that Doah has enough funds to withstand the boycott. 
       
  • The CEO of UBS has told CNBC that confidence in the European banking sector has been partially restored, but some of the second tier lenders still need to be addressed. Caroline sat down for an exclusive interview with Sergio Ermotti, and began by asking him if Italy was right to use state funds to bail out the Veneto banks
     
    Shouldn't happen that way, but almost inevitable because of bail-in-able, highly risky bonds were place with retail investors.... politically and socially irresponsible
     
     
    Annual Meetings Of The International Monetary Fund And World Bank : News Photo
     
     
    I do think there are banks... it's very important when the bonds are placed that people understand the risk they are taking. those kind of instruments should never be placed with retail investors.
  • Donald Trump Jr. agreed in 2016 to meet with a lawyer who was linked to the Kremlin after he was told she "might have information helpful to the campaign," the son of the president admitted in a statement Sunday.

    The younger Trump indicated that his brother-in-law Jared Kushner and then-campaign boss Paul Manafort attended the meeting, which took place as the presidential contest was heating up in June 2016.
     
    Trump Jr.'s statement is significant because the Trump campaign is facing multiple investigations into whether it colluded with Moscow. The Kremlin last year used various means to try to influence the American election, according to an official finding shared by effectively all of America's federal intelligence agencies.

    Trump Jr. on Sunday did not identify the Moscow-connected attorney, but said he was asked to meet with her by an acquaintance I knew from the 2013 Miss Universe pageant.
     
    After pleasantries were exchanged, the woman stated that she had information that individuals connected to Russia were funding the Democratic National Committee and supporting Ms. Clinton, Trump Jr. said.
     
     Donald Trump Jr.
     
    You can read his full statement here.
    by Spriha Srivastava edited by luke.graham 7/10/2017 5:19:01 AM
  • Trump Jr. met with a Russian lawyer after she dangled information that could help his dad's campaign

    CNBCDonald Trump Jr. met the attorney after she hinted that she had information that "might be helpful" to his father's campaign.
  • Here are your top news stories at this hour:
     
    • Asian stocks begin the week firmly in the green, picking up from a bullish session stateside, following stronger than expected non-farm payrolls data.
    • The CEO of UBS Sergio Ermotti tells CNBC in an exclusive interview that some of the weak players in the European banking sector still need to be addressed, as he says a bailout of Italy's failing lenders was inevitable.
    • "I didn't mean it!" President Donald Trump proposes and then plays down the creation of a US-Russian cyber security unit, after finally meeting his Russian counterpart Vladimir Putin at the G20
    • The Qatari Central Bank governor touts its 40 billion dollar cash reserves, as he tells CNBC exclusively that Doah has enough funds to withstand the boycott. 
  • The Qatari government says it will establish a committee to handle claims from companies and individuals that have lost business during the current blockade. The Gulf countries leading the boycott have already made their own demands for compensation from Doha, for its alleged political interference.
     
    UK Foreign Minister Boris Johnson visited the region over the weekend. He used his trip to condemn the blockade, calling instead for a coordinated crackdown on terrorist financing 
     
    There's no possibility of a military escalation, on the contrary, what people want to do I think is, we think that the blockade was unwelcome and we hope that there will be a de-escalation but of course we are working, supporting our Kuwaiti friends to get an understanding of how to take forward a wider fight against the financing of terrorism not just by Qatar but by all our friends in the region.
  • The governor of Qatar's central bank believes the country's economy will be able to fully withstand any financial shocks brought on by the dispute in the Gulf, and welcomed outsiders to investigate its accounts and money flows.
     
    "We're not guilty," Abdullah Saud Al-Thani told CNBC in an exclusive interview Sunday. The central banker referred to the accusations placed by other Arab nations that accuse Qatar of supporting terrorism.
     
    Qatar's central bank governor Sheikh Abdullah bin Saud al-Thani attends a meeting with other Gulf Cooperation Council (GCC) central bank chiefs in Kuwait City on March 24, 2010. GCC central bank chiefs are meeting to discuss progress towards regional monetary union.
     
    Let me say before it's justified, but we can proof that. If you look at our financial sectors now, and also our debt side, which is almost the loan - to give ou an example now, today is almost the six months over, so our results just came out in the banking sector. One to proof to you that our profitability is higher than it was in the beginning of the year, second our loan to deposit that was the concern for all these ratings company, it's going to be met by the end of the year, to the 100 percent. I give you an example., maybe at the beginning - end of 2016, we have seen loan to deposit ratios of 117, 118, and that's what makes the Moody's and the ratings companies worried. Today we find out that the loan to deposit ration was 107. Of the first six month. So we are heading to reach the 100 percent of loan to deposit by the end of this year. That will proof that we are really solid, strong and able to meet our credibility in managing all the prudential side, financial stabilities and our monetary policies. 
  • Qatar central bank governor Abdullah Saud Al-Thani spoke to CNBC exclusively. Read our full story on CNBC.com
     

    Qatar's top central banker says 'we're not guilty,' touts $340B cash and gold security blanket

    CNBCThe governor of Qatar's central bank believes the country's economy will be able to fully withstand the dispute in the Gulf.
  • BT is reportedly drafting in consulting firm McKinsey in a bid to reverse its ailing fortunes. According to the Telegraph, the company shake-up could include a merger of BT's troubled global services corporate networking and IT unit, with its business and public sector division. 
     
    The review, which comes ahead of Wednesday's AGM, follows a difficult period for the telecoms giant, which has seen it suffer a 530 million pound hit, related to an accounting scandal in Italy. 
     
     
  • Tesla CEO Elon Musk has revealed the first production photo of the company's new Tesla Model 3. Musk says the first production unit of the new vehicle will be coming this week.
     
    The move comes as Tesla shares dipped into bear market territory, following its worst week in a year and half. 
     
     
  •  Oil prices recovered some losses on Monday after a 3 percent fall in the previous session, but markets remain under pressure from high drilling activity in the United States and ample supplies from producer club OPEC.

    Brent crude futures, the international benchmark for oil prices, were at $47.08 per barrel at 0537 GMT, up 37 cents, or 0.8 percent, from their last close.
     
     
  • Here are your top news stories at this hour:
     
    • Asian stocks begin the week firmly in the green, picking up from a bullish session stateside, following stronger than expected non-farm payrolls data.
    • The CEO of UBS Sergio Ermotti tells CNBC in an exclusive interview that some of the weak players in the European banking sector still need to be addressed, as he says a bailout of Italy's failing lenders was inevitable.
    • "I didn't mean it!" President Donald Trump proposes and then plays down the creation of a US-Russian cyber security unit, after finally meeting his Russian counterpart Vladimir Putin at the G20
    • The Qatari Central Bank governor touts its 40 billion dollar cash reserves, as he tells CNBC exclusively that Doah has enough funds to withstand the boycott. 
  • Lorenzo Simonelli, President & CEO, BHGE speaks to CNBC in Istanbul:
     
    I think there is a tremendous opportunity. Out customers say we need to focus on productivity per barrel. How do you help us? What we have done by marrying the oil field services with the equipment and services capability of oil and gas is really bring that unique opportunity of putting it altogether. 
     
     
     
  • Markets in Europe are expected to open higher on Monday morning, extending gains seen across the U.S. and Asia.

    The FTSE was seen opening higher by 36 points at 7,381; the German DAX was expected to open up 81 points higher at 12,388; and the French CAC was on track to open higher by 21 points at 5,163.
     
     
  • European markets seen higher following G-20 talks; Eurogroup meeting eyed

    CNBCMarkets in Europe are expected to open higher on Monday morning, extending gains seen across the U.S. and Asia.
  • Caroline Roth sat down with the UBS CEO, Sergio Ermotti, and asked him if Europe was ready for a pull-back in ultra-low monetary policy.
     
    Banks are ready and would welcome normalization. very difficult for ECB to stay on hold for too long. don't want gaps between EUR and USD. will see that play out with SNB. expect SNB to stay on hold and let ECB go first.
     
     Annual Meetings Of The International Monetary Fund And World Bank : News Photo
     
    It is time to consider negative effect of negatives rates. It is very hard for SNB to move without ECB moving first
     
     
  • Barclays could face more criminal fraud charges over its 2008 cash call. According to the Financial Times, the Serious Fraud Office is preparing to make a charging decision related to subsidiary Barclays Bank, in the next two weeks. Barclays turned to Qatari investors for help during the financial crisis.
     
     
  • Hans Redeker, global head of foreign exchange strategy at Morgan Stanley, is discussing the issues facing the Australian and New Zealand dollar.
     
    You have in the case of Australia and New Zealand substantial foreign liability positions. That means that you need to take care on the funding of this liability position which is in excess of 60 percent of their GDP.

    Then you need to think about the banking sector so how much of wholesale funding dependency is there, so when global funding costs are going up, you are as well increasing the cost of local capital, because you are funding outside of Australia.

    Then you need to look into the household leverage. In both cases of Australia and New Zealand, but also Canada, the household leverage has shot through the roof. At the same time, the asset quality has sharply reduced.

    Redeker says the numbers are looking worse than the case of the United States’ economy in 2007, and he wonders what will happen as funding costs go up.
     
     
  • China's COSCO is aiming to become the world's third largest container shipper after making a $6.3 billion bid for smaller rival Orient Overseas. Shares in both companies jumped on the news, with COSCO stock hitting a 2 year high.

    The deal is at a 30 percent premium to Orient's close on Friday, with some analysts calling it expensive, given the recent slump in the global container sector.
     
     
    Meanwhile, Norsk Hydro has agreed to take full control of Sapa from Orkla, giving the business a total value of over 2.5 billion euros. Sapa was formed in 2013 as a fifty-fifty joint venture between the two firms.

    It will now be fully integrated into Norsk Hydro, giving the Norwegian firm an exclusive foothold in both the aluminium market and finished products.
  • Qatar central bank governor Abdullah Saud Al-Thani, says inflows are exceeding outflows made by non-residents.
     
    Even if it not exceeding, we are ready to meet all the requirements of the non-residents if they decided to take their deposits, we are ready to meet all this. And the banking is well, they have this ladder of maturities to meet this requirement.
     
     
     
  • Hans Redeker, global head of foreign exchange strategy at Morgan Stanley, discusses how the U.K. government’s approach to Brexit has changed following the recent general election.
     
    The currency market should trade the Brexit economic cycle. That is about what type of cliff-edge do you need to expect in March 2019? Is it going to be higher or lower as a result of this election result?
     
    The point is we are heading into more of a cooperative stance. The CBI is trying to get more of a say in the way these Brexit negotiations are going to develop. It is much more open when compared to what was the situation before that election result.
  • European markets are now open for trading. The pan-European Stoxx 600 has opened slightly higher as investors digest Friday's nonfarm payroll numbers:
     
     
  • Let's take a look at major European indexes that have opened on a positive note this morning:
     
     
  • Denmark's current account surplus for May came to 16.2 billion Danish Krona. Trade surplus that month was 4.8 billion Danish krona, according to the country's statistics office.
     
    June's EU-harmonised CPI for Denmark came to 0.4 percent year-on-year.
     
    Meanwhile, Turkey's seasonal and calendar-adjusted industrial output in May fell 1.5 percent month-on-month, according to the country's Statistics Institute.
  • BT is reportedly drafting in consulting firm McKinsey in a bid to reverse its ailing fortunes. According to the Telegraph, the company shake-up could include a merger of BT's troubled global services corporate networking and IT unit, with its business and public sector division. The review, which comes ahead of Wednesday's AGM, follows a difficult period for the telecoms giant, which has seen it suffer a 530 million pound hit, related to an accounting scandal in Italy. 
     
     
  • Senior management at Volkswagen knew about the cost of the diesel emissions scandal almost a month before investors were informed, according to a report by Bild. It says managers were warned that the scandal could cost 18 and a half billion dollars. 
     
     
  • Norsk Hydro has agreed to take full control of Sapa from Orkla, giving the business a total value of over 2 point 5 billion euros. Sapa was formed in 2013 as a fifty-fifty joint venture between the two firms.

    It will now be fuly integrated into Norsk Hydro, giving the Norwegian firm an exclusive foothold in both the aluminium market and finished products.
     
     
     
  • Sergio Ermotti, CEO of UBS, told CNBC what he thinks will unleash animal spirits globally.
     
    There are many fronts open. The U.S. is one, but in Europe people are now looking to see how the new administration in France will perform. Remember, five or six months ago people were concerned about the Dutch elections, the French elections and now those things are normalizing.
     
    We need to see what’s coming out of Asia and China in particular. The geopolitical front is quite a worry.

    Ermotti says investors need to see a prolonged and stable pattern going forward and says it will take a year or two of stable markets and stable issues to see high cash balances come down.
  • Let's take a look at the best and the worst performing stocks this morning:
     
  • James Barty, head of European equity strategy at BofA Merrill Lynch, argues against the view that the bull market is getting long in the tooth.
     
    First of all the recovery in the global economy has been quite subdued by historical standards. Although it’s long in age, it’s not great in terms of the amount of GDP we’ve added. Also on the valuation point, the key sort of point I make to people is, compared to what?
     
    Yeah, U.S. equities are on 18 times earnings, European equities about 15.5 times, but you’re talking about something in the region of a 6 percent earnings yield. You compare that to government bonds, where even in the U.S. you only get 2.3 or 2.4 percent.
     
     
  • Saudi Aramco CEO says increasingly worried by long-term situation with oil supplies, investments in shale oil will not be enough to meet long-term global demand.
     
    Aramco CEO says world lost $1 trillion in investments since oil prices started declining. He further adds that the world needs to find 20 million barrels per day of new production to meet demand growth, offset natural decline of developed oilfield in next five years. 
  • Air France-KLM shares hit 6-1/2 year high on June traffic:
     
     
  • Commenting on the Saudi Aramco announcement that the world has lost $1 trillion in investments since oil prices started declining, CNBC’s Steve Sedgwick had this to say.
     
    The Saudi Aramco strategy, is it worth a trillion, is it worth two trillion? What’s a trillion between friends on a New York or London listing?
     
    (The announcement) also about shoring up the price and his comments about the trillion dollars that’s been lost in investment since the price started to decline, that’s only three years and that investment is still needed over the medium to long term.
  • James Barty, head of European equity strategy at BofA Merrill Lynch, says political risk is always in the background for investors.
     
    It’s something which periodically comes up and starts to worry market participants. But at the end of the day if that political risk doesn’t actually start to damage the earnings prospects and the growth prospects, markets tend to disregard it.
  • These are the top headlines following the market open:
     
    • On the move. European stocks head higher, following solid gains in Asia, and strong U.S. job numbers.
    • "I didn't mean it!" President Donald Trump proposes and then plays down the creation of a U.S.-Russian cyber security unit, after finally meeting his Russian counterpart Vladimir Putin at the G20.
    • The Qatari Central Bank governor tells CNBC exclusively that Doha has enough funds to withstand any financial shocks, adding that its energy contracts have not been disrupted by the boycott.
    • In another CNBC exclusive, the CEO of UBS Sergio Ermotti says investors are looking for a sustained period of calm until they start taking more money out of cash reserves.
  • The pan-European Stoxx 600 is up almost a quarter of a percent so far this morning. Solid gains in Asia and strong U.S. jobs growth for June are encouraging investors.
     
    Real estate and the oil & gas sectors are leading the market higher this morning. Here's a look at the stock sectors performing best and worst today.
     
  • World leaders are making a break with the U.S. over climate change. The final statement out of the G20 summit includes an unusual separate paragraph, explaining how the U.S. differs on environmental policy.
     
    German Chancellor Angela Merkel says she deplores the American decision to withdraw from the Paris climate deal, but the commitment of other G20 countries is irreversible.
     
     
  • CNBC spoke to the UBS CEO, Sergio Ermotti about climate change and how much investors have begun prioritizing sustainability in their investment decisions. UBS has committed $5 billion to impact investing.
     
    It makes sense to the clients, because they want it. It’s not something we are pushing out to the clients, we’re responding to a clear demand that is there.
     
    This is not only a demand coming from the millennials or the new generations, which of course they want to do something good, while doing well. But this is not any longer just something that’s a focus of new generations; older generations want to have a legacy.
     
    He says almost a third of assets managed come under the umbrella of sustainable investments.
  • U.K. Prime Minister Theresa May's deputy Damian Green, the first secretary of state and minister for the cabinet office, says he is confident the government can get its repeal bill though parliament.
  • U.S. Secretary of State Rex Tillerson will travel to Kuwait today to help mediate the dispute between Qatar and its Arab neighbours.
     
    CNBC's Willem Marx spoke to the Qatar central bank governor Abdullah Saud Al-Thani about potential disruptions to LNG production as a result of the crisis.
     
    Most of these contracts of the LNG, are long-term contracts. And they are with our clients, they believe in us, and we believe in them.

    What kind of disruptions? I don't think that there will be a disruption unless there is something beyond this kind of boycott.

    He added that if something were to happen, they have plans and other strategies to meet all of the Bank’s requirements.
     
    Abdullah Saud Al-Thani
  • Investors have pulled an estimated $26.7 billion from Goldman Sachs Asset Management's mutual funds so far this year, according to Morningstar data. A Financial Times report says the outflows represent more than half of the asset firm's strategies globally. It also makes Goldman the hardest-hit fund manager around the world in 2017.
     
    Hans Redeker, global head of foreign exchange strategy at Morgan Stanley, discusses how worried markets should be about the move to passive funds.
     
    I do not like what I see, because you have to consider when you have people getting more involved with passive investment strategies, the market will be less able to react to minor distortions or minor declines on the fundamentals side. You will not see the market direction. You will see just a continued inflow of funds.
     
    He warns that these passive funds are tied to risk strategies that pulls money out if it falls by a certain amount, and if the market hit these levels you could see a cascading event, whereas active managers can see opportunities to move money into the market.
  • These are the top headlines for the hour.
     
    • On the move. European stocks head higher, following solid gains in Asia, and strong U.S. job numbers.
    • "I didn't mean it!" President Donald Trump proposes and then plays down the creation of a U.S.-Russian cyber security unit, after finally meeting his Russian counterpart Vladimir Putin at the G20.
    • The Qatari Central Bank governor tells CNBC exclusively that Doha has enough funds to withstand any financial shocks, adding that its energy contracts have not been disrupted by the boycott.
    • In another CNBC exclusive, the CEO of UBS Sergio Ermotti says investors are looking for a sustained period of political calm, before they start taking more money out of cash reserves.
  • Swiss sight deposits at domestic banks totalled 486.024 billion Swiss francs for the week ending July 7, down from the previous total of 490.071 billion francs.
     
    Sight deposits provide an indicator for how inclined banks are to find a safe place for their money. A rise in sigh deposits can indicate central bank intervention in forex markets to weaken the franc, according to Reuters.
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