World Markets Live - July 10 - CNBC Live Events

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.

  • Russia's Gazprom says potential new U.S. sanctions may result in delays or prevent completion of some of its projects, according to its eurobond prospectus.
    Gazprom says Nord Stream 2, Turkish Stream, Deepwater, Arctic Offshore and shale projects among those which could face difficulties.
    Russia's Gazprom says it has raised a 42.35 billion rouble loan from VTB and a 42.7 billion rouble loan from Sberbank, both due in 2022.
  • Qatar's energy minister says Qatar's LNG exports to Japan, India, South Korea and China were not affected by the Arab boycott.
    He says exports to the UAE, Saudi Arabia and Bahrain are less than 8 percent of Qatar's total exports.
  • Kazakhstan wants to gradually leave an OPEC-led oil production cut, with a rise in output within a couple months after the deal expires. The Kazakh oil minister spoke to Russia's news agency TASS, as the World Petroleum Congress opens in Istanbul.
    OPEC and other big producers agreed to cuts until the end of March 2018, to bring down a global oil glut and support weak prices.
    CNBC’s Steve Sedwick is reporting from the World Petroleum Congress in Istanbul. He says sentiment on the ground
    2014 was the last World Petroleum Congress in Russia and there I was, price $108 a barrel. WTI is trading around $44 a barrel today, so completely different backdrop in three years and they are under enormous pressure, that’s both the IOCs, the International Oil Companies… and the NOCs, especially the NOCs, because they've not only got to get their cost downs, but they also have to balance their budgets.
     Oil prices are slightly negative this morning.
  • 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.

    CNBC Willem Marx spoke to Qatar central bank governor Abdullah Saud Al-Thani, about whether or not Qatar did enough to investigating flows of funds through Qatar to terrorist groups.
    Qatar has already had a good and unique system. We have laws established against all these kinds of terrorists, we have our own law which also create a unit inside the Central Bank to review all the activity in banking. We have compliance sitting in the banking system. We have also, maybe the only country, the charities law that regulates them and also publicly have the external audit team. 
    In the last years we've have all these systems and it is proven to review everything openly. So we have a very good, unique system and compliance also on the charity side, we have compliance on the banking sector and also two committees.
  • Daimler says its Mercedes-Benz electric-drive sprinter van will roll off the production line in Dusseldorf, its lead sprinter plant worldwide.
    The car maker is investing around 300 million euros into the plant for production of the next-generation van.
    It says Hermes Germany will deploy 1500 electric sprinter van for its parcel deliveries in the coming years.
  • Despite the recent spike in bond yields, volatility in financial markets has remained low, with the VIX index falling by around 20 percent year-to-date. 

    CNBC caught up with the CEO of UBS, Sergio Ermotti, and asked him how the long period of relative calm in stock and bond trading is impacting his bank's performance.
    Right now there is no volatility at all, so we are not even discussing bad volatility in this environment. Of course we do see now for the last 5-6 months, individual clients being more active and constructive about markets than institutional investors, which are of course highly correlated to the volatilities of financial markets.
    We are almost correlation one across many asset classes in terms of volatility, so I do see a little bit of a stagnation of business, and a little bit of volatility and change in policies may help to give a little bit of momentum to the business.
    Sergio Ermotti
  • Investors have pulled an estimated $26.7 billion dollars 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.
  • Small hedge funds can turn a profit and expand with less than $100 million in assets under management. A new survey from the trade body the Alternative Investment Management Association showed that the average break-even point is around $86 million.
    Jack Inglis, CEO of the Alternative Investment Management Association, says they were puzzled by other reports which suggesting a minimum of $250 to $300 million for a successful hedge fund.
    That didn’t quite stack up with the number of managers we saw, particular among our members, that were smaller than that size. So we decided to conduct a survey of a broad range of managers and got a very good set of responses back, and we came up with that number, that $86 million was on average the breakeven point, which is very interesting.
  • Theresa May's offer to EU workers in the U.K. risks treating them as "second class citizens." That's the view of several MEPs, headed by Guy Verhofstadt.
    Writing in the Guardian, the European parliament's lead Brexit negotiator called on the U.K. prime minister to improve her offer, warning he will torpedo any deal that doesn't meet the group's expectations. 
  • Donald Trump Junior met with a Kremlin-linked lawyer last summer after being promised damaging information on Hillary Clinton.
    Following a New York Times report on the meeting, Trump Junior said the lawyer "had no meaningful information", and the discussion quickly changed focus to policy concerns unrelated to Clinton.
    This as President Trump took to Twitter, to provide details of his meeting with Russia's Vladimir Putin, at the G20 in Hamburg.
  • NBC's Kelly O'Donnell reports on President Trump's meeting with President Putin.

  • German Chancellor Angela Merkel says that leaders from world's leading economies need to hold to aggressive deadlines to address global steel overcapacity, adding that the U.S. could impose fines or tariffs if no actions are taken.
    Merkel says G20 leaders agreed to hold a forum on the issue in August, and put out a report with possible solutions in November.
  • Nitesh Shah, commodities strategist at ETF Securities, says the U.S. are unhappy with the overcapacity of the global steel market.
    The Trump administration in particular, is supporting the steel industry and helping revive jobs there, it’s now time for Trump to deliver on that. But the only way the Trump Administration has sought a solution is to say it’s against the country’s national defence issues. That’s going to be something that’s very difficult to prove, but they’re going to use an obscure 1962 law to say the steel industry is very important for the defence sector and try to restrict imports on the back of that.
    Shah says this is unlikely to fly with other countries.
  • U.S. markets look set to continue Friday's strong finish in Monday's session, according to future values. 
    So far, the S&P is called 4.87 points higher, the Dow is expected to gain 18.66 points and the Nasdaq looks set to rise 20.28 points. The Nasdaq is about 3 percent off the record high set on June 9.
  • Greek June consumer inflation rose 1 percent year-on-year, versus 1.2 percent in May.
    Greek industrial output in May increased 5.4 percent year-on-year, from 0.8 percent in April.
  • The euro is flat against the dollar today, down just 4 basis points. So far this year, the euro is up more than 8 percent against the U.S. currency.
    George Saravelos, strategist at Deutsche Bank, argues that the current range for the euro-dollar trade is too small, and expects the euro to break above 1.15 by the end of the year.
    First, if the current 1.03-1.14 range in EUR/USD persists throughout the year it would be one of the narrowest in the euro’s history. This would be highly unusual and therefore unlikely: the median annual range for EUR/USD since 1999 has been 18 big figures equivalent to a move above 1.20. 

    Second, the current EUR/USD move is “too small” versus prevailing volatility levels. There is an upward sloping relationship between FX vol and ranges, with more volatile years associated with bigger FX moves. Even though volatility is low this year, the current range is even smaller than this would justify. Current volatility levels of around 8 percent would be equivalent to a 14 big figure range for EURUSD, a move up to 1.17, which is our year-end forecast. 
    He expects the euro to go higher, as technical indicators are in its favour. 
  • Turkey's prime minister calls on Cyprus to refrain from any one-sided measures, adding that Turkey will protect its own rights as well as those of Cyprus Turks.
    The prime minister says hydrocarbon resources around Cyprus belong to both sides.
  • Russian's finance minister says proposed new U.S. sanctions wouldn't spur an exodus of foreign investors from Russian OFZ government bonds.
    The finance minister says the sanctions wouldn't negatively impact the Russian plan to privatise state companies.
    The CEO of Saudi Aramco warns that the world may be heading for an oil shortage.
    Speaking at the World Petroleum Congress in Instanbul, Saudi Aramco CEO Amin Nasser said the long-term outlook for oil supplies is becoming increasingly worrying and that about $1 trillion is investments have already been lost since oil prices declined in 2014.
    Financial investors are shying away from making much needed large investments in oil exploration, long-term development and the related infrastructure. Investments in smaller increments such as shale oil will just not cut it.

    Saudi Aramco CEO says world has lost $1 trillion in investments since oil prices started declining

    The world might be heading for an oil supply shortage, Saudi Aramco's chief executive said.
  • Oil is under pressure today, with crude prices down almost 1 percent. This follows Friday's session where oil prices fell due to increased production by the U.S. and more supply coming from OPEC countries.
  • The U.K. parliament is being evacuated after a fire alarm went off, according to a Reuters reporter.
  • London's High Court rejects a case against the U.K. government which aimed to halt the country's multi-billion-pound arm sales to Saudi Arabia.
    The BBC reports the High Court ruled the sales are lawful after seeing secret evidence.
  • Russia's G20 "sherpa" Svetlana Lukash says Putin and Trump discussed cyber security for about 40 minutes at the G20 at the weekend.
    Lukash says the cyber security discussion doesn't mean a U.S.-Russia group is about to start working immediately, according to Reuters.
    She doesn't rule out whether the cyber security unit may be a U.S.-Russia joint group or a UN-sponsored group.
    She adds that President Trump may not be ready for setting up a joing group on cyber security.
    This after Trump tweeted about forming a joint effort with Russia at the weekend...
    ... but later clarified his comments. 
  • Baker Hughes has announced its latest rig count data for June 2017. It found the international rig count increased to 960 in June from 957 in May.
    The worldwide rig count increased to 2,041 in June, up from 1,935 in May. The rig count has increased 634 from 1,407 counted in June 2016.
    The company says the U.S. rig count increased by 38 in June to 931 last month.
  • Speaking in Kiev, NATO Secretary General Jens Stoltenberg says Russia must withdraw thousands of its troops from the Ukraine.
    Stoltenberg says he is concerned by the increasing threats to OSCE monitors in Eastern Ukraine. He says he is working to provide Ukraine with satellite communication equipment and to protect Ukraine from cyberattacks.
    Meanwhile, Ukraine's President Poroshenko says he wants Ukraine to meet NATO standards by 2020. The president says NATO has accepted the country's proposal to start discussion on NATO membership.
  • Saudi Aramco CEO Amin Nasser warns the long-term outlook for oil supplies is becoming increasingly worrying. He warned that a supply-gap could emerge due to a lack of investment.
    Spencer Welch, director of oil markets and downstream in IHS Markit, says this supply-gap has the potential to push oil prices above $100 a barrel in three to five years' time, although this is unlikely.
    A massive lack of upstream investment in the period 2014-17 will have future impact on oil production, such that IHS Markit expects oil demand to exceed supply in the period 2020-21, the “supply-gap” is real.
    The question is – by how much and will this push up oil price?
    We think the supply-gap will last for around two years, but we also think that the current very high oil inventories can and will cover this supply-gap, this is when inventories will drop down. The inventory drop that the supply cutters are hoping will happen in the next year is unlikely to happen until 2020-21.
    Oil prices remain weaker, down about 30 cents a barrel today. 
  • Turkey's Presiden Erdogan says a big opportunity was wasted in Cyprus talks last week, and some energy companies are becoming part of irresponsible measures by Greek Cypriots, Reuters reports.
    Erdogan also said Iraq needs to refrain from holding an independence referendum.
    Meanwhile, Erdogan says work on a third nuclear power plant project has started and that he wants to start construction on the Sinop nuclear power plant as soon as possible.
  • BNP Paribas has cut its average price forecast for Brent crude oil by $9 to $51 per barrel for 2017 and by $15 to $48 per barrel for 2018.
    It also cut its average price forecast for WTI by $8 to $49 per barrel for 2017.
    These are today's crude oil prices.
  • Southwest Airlines reports its June traffic figures. The airlines June load factor was 87.4 percent, the same as June the year before.
    The company flew 11.9 billion revenue passenger miles, up 3.7 percent from June 2016. The number of passengers carried increased 4.6 percent year-on-year to 11.63 million. Meanwhile, capacity rose last month by 3.8 percent.
  • Great Plains Energy and Westar Energy announce they've agreed to a merger of equals. The transaction has a total equity value of around $14 billion.
    The deal will enhance earnings for both companies. 
  • Helen of Troy reports Q1 net profits of $5.87 million. Earnings per share was 22 cents. First quarter revenue was $359.6 million, slightly higher than the expected $358.4 million.
    The company sees full year 2018 sales up 1.5 to 4.1 percent.
  • President Donald Trump has hit Twitter again to amp up the pressure on approval for a new Healthcare bill.
    Trump wants the "Better Care Reconciliation Act" to replace Obamacare but over the weekend two moderate Republican senators indicated that the initial GOP bill was probably "dead".
  • U.S. stock index futures point to a mixed open later as traders awaited the release of economic data and eyed earnings.
    Monday will see consumer credit data for May released at around 3 p.m. ET.
    Barracuda Networks and WD-40 are both due to report after the market close.
    Helen of Troy, which makes grooming products, earlier reported first quarter net profit of $5.87 million.
    Earnings per share was 22 cents. First quarter revenue was $359.6 million, scraping past the expected $358.4 million.
  • Below are a number of stocks that are making moves in the run up to the U.S. market open. Thanks to Peter Shacknow for putting this together:
    Facebook (FB) – Facebook cut the price of its Oculus Rift virtual reality headset and related gear for the second time this year.  Consumers will be able to buy the headset, controllers, and some games as a bundle for $399, compared to the prior $598.  The lower price will be in effect for the next six weeks.
    More on that story here:
    Wells Fargo (WFC) – The bank won preliminary approval from a California judge for its $142 million settlement with consumers whose credit scores were harmed by the creation of fake accounts in their names.
    ClubCorp (MYCC) – ClubCorp agreed to be bought by Apollo Global (APO) for $1.1 billion in cash, or $17.12 per share.  ClubCorp is one of the largest operators of private golf clubs in the US. 
    Costco (COST) – BMO Capital downgraded the warehouse retailer’s stock to “market perform” from “outperform”, noting that a six percent jump in June comparable sales didn’t appear to be enough to overcome fears generated by Amazon’s (AMZN) purchase of Whole Foods (WFM).
    Great Plains Energy (GXP), Westar Energy (WR) – The two electric utilities have agreed to an amended stock swap merger agreement that involves no premium paid or received by either company.
    Helen of Troy (HELE) – The personal care products maker reported adjusted quarterly profit of $1.37 per share, 11 cents above estimates, while revenue was also above Street forecasts.  The company credits successful new products and expansion of international sales, among other factors.
    Southwest Airlines (LUV) – The airline reported a 3.7 percent increase in revenue passenger miles during June, compared to a  year earlier.
  • The Kremlin has reportedly said it does not know the identity of a Russian lawyer who allegedly met associates of President Trump.
    His son, Donald Trump Jr., has acknowledged that he met with a Russian lawyer who offered information that could be helpful to his father's presidential campaign.

    Trump Jr. claimed he determined the lawyer had no "meaningful information" on then-Democratic presidential candidate Hillary Clinton.

    Here's Donald Trump Jr.'s full statement on his meeting with a Russian lawyer

    CNBCTrump Jr. says the Russian lawyer offered information about Hillary Clinton, but her statements were "vague" and "made no sense."
  • European markets are broadly higher as trade reaches into the afternoon session, although the FTSE is an obvious exception.
    Technology stocks was among the best performing sectors, trading up by almost a percent, as investors regained faith in the sector following a brief lull earlier in the month.
    Banks on the other hand dipped by midday deals, having been trading higher at the start of the session. Lloyds Bank, Banco Santander and Metro Bank were some of the stocks to slip lower.
    The FTSE is being dragged lower by life insurer Legal &General after the British firm saw its rating was cut to negative by S&P.
  • Gold has slid to its lowest level in nearly four months after the latest U.S. jobs data boosted stock markets and Treasury yields.
    That reduced demand for safe-haven bullion as people upped their riskier investment bets.
    Spot gold is at $1,211.27 per ounce. It earlier touched its lowest since March 15 at $1,204.45.
  • Donald Trump has defended his decision to allow his daughter to take take his place during a meeting at a high-level summit at the G-20.
    Of course , he did it on Twitter:
    He then decided to take another swipe at Hillary Clinton.
  • The U.S. dollar is circling around a two month high against the yen. 
    Strong economic data from the United States and Germany last week have encouraged investors to seek higher risk investment and move away from the safe-haven yen.
  • The International Monetary Fund has warned that the biggest risk to the Russian economy remains a fall in oil prices.

    The fund has also said that Russia should ease its monetary policy gradually.

    The fund has repeated earlier calls for Russia to restructure its economy in order to improve growth.
  • IPO on track for 2018: Saudi Aramco CEO

    CNBCSaudi Aramco CEO Amin H. Nasser talks to CNBC about the timing of the company’s IPO, with discussion on the current state of oil prices.

  • The CEO of Saudi Aramco warned that the long-term outlook for oil supplies was becoming a concern, due to decreased investment.

    CNBC’s Steve Sedgwick spoke to the Saudi Aramco CEO Amin Nasser at the World Petroleum Congress. Nasser said there is good investment in unconventional oil and gas but they will not be sufficient over the long term to meet the needed demand of oil and gas.

    He said there has been an almost 3 to 5 percent decline in oil production.
    Out of 97 to 98 million barrels you’re talking about 3 to 4.5 million barrels of national decline in existing fields. That needs to be compensated over the long-term. A lack of investment is definitely not helping.
    So if that continues over the next couple of years there will be an inflection point where what we see today will have an impact on the consumers at the end and supply will be impacted over the next couple of years.
    Nasser says he wants to see more investment from the various sectors to ensure there is adequate supply over the long term.
    CEO Amin Nasser confirmed Saudi Aramco's IPO will go ahead in 2018, despite the lowering oil price.
    Our investment is geared for the long term.
  • A lower open to the week for U.S. stocks.

  • Here are the best and worst on the S&P 500 this Monday morning.
  • Reuters is reporting that Germany's Siemens is to take legal action to prevent the installation of two of its turbines in Crimea.
    Russia has previously promised to provide stable power for the region after it was annexed from Ukraine in 2014. Energy supplies to Crimea are seen as a breach of sanctions imposed by the EU.
    The news agency said two of four turbines intended for a site for a separate project were moved to Crimea against company wishes.
    Siemens says the move is a "clear breach of contract" and wants to initiate criminal charges.
    The German industrial giant also wants to reverse the contract and bring the dispatched equipment back to the original destination of Taman in southern Russia, near to the Ukrainian border.
  • Here at the last print are the best and worst performing stocks on the Dow Jones Industrial Average.
  • The dollar has hit a new high of 114.29 against the yen, highest level since May 11th when the dollar traded as high as 114.36 against the yen.
    On our last print the dollar was sitting at 114.19.

    Hungarian government faces anti-Semitism claims amid vilification of George Soros

    CNBCA government campaign portraying billionaire businessman George Soros as the enemy of the Hungarian people has prompted a public outcry with people accusing the ruling right-wing Fidesz party of Nazi-era anti-Semitism.
  • Euro zone bond yields have fallen from recent highs as investors showed a touch of appetite for sovereign debt.
    Investors have spent the last two weeks selling bonds in the belief the European Central Bank is about to embark on a path on monetary tightening.
  • Facebook shares are up more than 1 percent in U.S. morning trade.
    The stock is among the higher performing equities on the Nasdaq.
  • UK to start the process of ending 40 years of EU control — Here’s what you need to know

    CNBCThe U.K. government is to present Thursday a draft bill that will affect all kinds of laws that have governed the country for more than 40 years – the so-called Repeal Bill.
    European markets have closed in the green.
    Tech stocks were among the best-performing sectors, trading up by almost a percent on Monday, as investors regained faith in the sector following a brief lull earlier in the month.
    The average across the Stoxx 600 stocks equating to a rise of 0.5 percent.
    That is where we will leave the blog today but tomorrow we will have the following to look out for:
    • World Petroleum Congress
    • Europlace conference in Paris
    • IMF Conference on Central and Eastern and Southeastern Europe
    Join us then for more.
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