World Markets Live - July 11 - CNBC Live Events

CNBC Live Events

World Markets Live - July 11

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

  • HSBC confirms it is planning to move 1,000 jobs to Paris as part of its plans for Brexit. However, he says if it turns out to be a "soft Brexit" it may not move 1,000 jobs out of the country.
    The CEO Stuart Gulliver says he has to work on the assumption that the U.K. will end up with a "hard Brexit."
    The bank's CEO says the measures announced by the French government last week for the finance industry are "very positive" if enacted, Reuters reports. The CEO says the bank is in the early stages of assessing the French government measures.
    Gulliver adds that Paris' weakness has been around its labour laws and it would be positive if this changes.
  • Welcome to World Markets Live. We'll begin full blog coverage from 0600 BST.
    Here are the opening calls for European markets.
  • Here are your top headlines this morning:
    • Russia's energy minister Alexander Novak tells CNBC the OPEC - non-OPEC deal is already leading to positive effects in the oil market, but more can be done to cut oversupply.
    • The White House defends Donald Trump Junior's meeting with a Russian lawyer last year, as a new report suggests he knew the person offering compromising information on Hillary Clinton had Russian government ties.
    • Primed for a big event. Shares in Amazon rally ahead of its heavily promoted Prime Day, with analysts forecasting the discounted sales could top $1 billion.
    • Open for business! We speak to a number of France's top executives at the Europlace conference in Paris, as the French prime minister vows to reduce the tax burden by seven billion euros.
  • CNBC's Steve Sedgwick spoke to Russia's Oil Minister Alexander Novak at the World Petroleum Congress in Istanbul, who said the OPEC and non-OPEC cut had a positive effect on the oil industry.
    Globally, we need to look at the overall situation with the balance between demand and supply, and in this sense, in my view the most important thing is to take a positive from the reduction of the industry's surpluses that would have had a negative influence today if we hadn't done anything. Things would have been a lot worse. 

    OPEC and non-OPEC production cuts can go longer and deeper if necessary, says Russia energy minister

    OPEC and non-OPEC producers have the capacity to extend and deepen their production cuts should the oil market's situation become even more complex, Russia's Oil Minister Alexander Novak told CNBC on Monday.
  • Asian shares mostly edged higher in the session. Investors are cautious ahead of testimony from Federal Reserve Chair Janet Yellen.
    Meanwhile, the U.S. session ended mixed. The Dow and S&P were broadly flat, while the tech-based Nasdaq pulled higher.
  • Russia's Oil Minister Alexander Novak discussed with CNBC at the World Petroleum Congress in Istanbul about what may happen when the OPEC and non-OPEC production cut deal ends in March 2018.
    Well, I think that it's early to make these sort of statements about how countries will be acting after 1 April. But in accordance with the situation we have today and the dynamics we see, we need to achieve a balancing out of the market and a reduction of reserves to the average for the last five years by 1 April of next year.
    And starting from the 2nd quarter, gradually in step with demand, we need to move away from this deal. I think this is the correct strategy, but today it's too early to talk about it because we still have nine months in front of us and a lot can happen in the market. Therefore, we need to steadfastly implement the agreement and monitor the situation and see how the market behaves. 
    He added that if it was necessary, they can extend the agreement.
    If necessary we can increase the amounts that need to be reduced or on the contrary we can move to reduce them. But everything will depend on the ongoing situation.
  • Abu Dhabi plans to float a portion of its state-owned oil company. The IPO is part of a plan to boost the firm's profitability and gain access to new markets. This comes as oil-dependent nations battle with a glut of supply that has been pushing down crude prices. Saudi Arabia and Oman are also preparing to sell equity in their state energy companies.
    Meanwhile, U.S. Secretary of State Rex Tillerson is in the Persian Gulf, hoping to help settle a dispute between Qatar and its neighbours. Tillerson stopped first in Kuwait, to speak with the emir and foreign minister. He'll also visit Qatar and Saudi Arabia this week.
  • Abdullah Bin Hamad Al-Attiyah, former Qatar energy minister, told CNBC what he thought were the motivations for the crisis in the gulf.
    One of their conditions were that Qatar should cut diplomatic ties with Iran. We said OK, we agree, but on condition that all the six countries sit in Riyadh and agree to cut diplomatic, commercial, business, airlines and transportation with Iran, and we will sign it.
    For sure, they rejected, because today the biggest trade with Iran is the Emirates. It’s about more than 30 to 40 billion a year. So they say no, they withdraw the case of Iran.
    He said the Qatar crisis is nothing to do with Iran, as the balance of trade between Iran and Qatar is insubstantial compared to the trade between Iran and the UAE.
    The New York Times reports that Donald Trump Junior knew the Russian lawyer he met with had Russian government ties. The attorney had offered to provide damaging information about Hillary Clinton.
    The White House denies that the campaign colluded with Russia to influence the election.

    Trump's son reportedly was told anti-Hillary info was part of Russian government plan before meeting

    CNBCTrump’s son was told he would get anti-Clinton information was from a Russian government effort to aid his father’s campaign, the NYT reported Monday.
  • The U.S. Treasury may remove the so-called 'earnings stripping' rule that is intended to stop firms from reducing their tax bills by shifting profits out of the country. A number of business groups have criticised the directive since it was introduced by President Obama.
    Companies are supposed to be fully compliant by January of next year. It was part of broader regulation passed in 2016, which stalled so-called tax inversion deals such as Abbvie and Shire, as well as Pfizer and Allergan.
  • NBC's White House Correspondent Kristen Welker reports on the latest Trump news.

  • Paul Singer's Elliott Management is bidding $18.5 billion for the Texas utility Oncor. This tops the recent offer by Warren Buffett's Berkshire Hathaway. Elliott says its bid is a better deal for debtholders.
  • Deutcsche Bank has released a set of new stock calls. Here are some highlights.
    Adecco - target price cut to 60 Swiss francs from 77 Swiss francs
    Randstad - cuts to sell from hold and drops target price to 36 euros from 56 euros.
    Vinci - gets buy rating and a price target of 92 euros.
    Apple - raise target price to $132 from $130, keeps hold rating.
  • U.K. Prime Minister Theresa May gives a major speech today, where she's expected to restate her commitment to reform, despite the loss of her parliamentary majority. She's also expected to challenge opposition parties to contribute ideas, not just criticise Conservative policies. 
    This after a new setback for May as she suspends a conservative MP for a racist remark. Lawmaker Anne Marie Morris used racist language at an event about Brexit implications. The MP has apologised for the offence caused by her remarks, which May called "completely unacceptable".
    Meanwhile, surveys from Barclaycard and the British Retail Consortium suggest U.K. consumers are shrugging off the political uncertainty resulting from the Brexit vote and last month's general election.
    According to data published by the BRC, U.K. retail sales grew 2 percent last month. The latest Barclaycard survey paints a similar picture, suggesting that U.K. consumer spending rose 2.5 percent in June. 
  • French Prime Minister Edouard Philippe says he plans to boost investments to France by introducing tax cuts for the wealthy. Speaking to the Financial Times, he said the timing of this reform will be announced to Parliament in the next few days.
    The move comes as a clear break from Francois Hollande's Government which imposed a 75 percent income tax on high earners. 
  • Gérard Mestrallet, chairman of Europlace and chairman of Engie, says Macron’s victory gives hope for a rebound of Europe.
    We are living in a unique momentum for the Paris financial market place. After Brexit, after Trump, after the election of Macron, we are now with the measures taken by the prime minister. All these measures, this momentum, creates a unique opportunity for the Paris financial market place and more generally for the attractiveness of France.
    He says measures for the reforming the labor market have been announced which give flexibility and reduce costs to businesses, which is very important.
  • Amazon Prime Day is here and CEO Jeff Bezos wants to make sure consumers feel they need to be part of it. Special offers are all over the website. Prime membership has grown steadily, now around 85 million in the U.S.
    That's one reason for the share price surge, with Amazon outpacing its retail rivals over the last 5 years.
  • CNBC's Deirdre Bosa takes a look at the economics of Prime Day

  • Snap shares sunk to below their IPO price of $17 for the first time on Monday, as fears over the company's growth potential spooked investors.

    Credit Suisse cut its price target for the stock to $25, while some analysts argue its waning user numbers and high valuation could pose a threat to future profitability. 
  • Dutch prosecutors say they will investigate Suzuki over a possible misuse of vehicle emissions software. Shares in the automaker fell as much as 4 percent in early trading. The announcement came after the Suzuki Vitara models produced unacceptably high levels of toxic emissions during road tests. The Dutch road authority also singled out Jeep.
  • These are the top stories this hour:
    • The White House defends Donald Trump Junior's meeting with a Russian lawyer last year, as a new report suggests he knew the person offering compromising information on Hillary Clinton had Russian government ties.
    • Russia's energy minister Alexander Novak tells CNBC the OPEC - non-OPEC deal is already leading to positive effects in the oil market, but more can be done to cut oversupply.
    • Primed for a big event. Shares in Amazon rally ahead of its heavily promoted Prime Day, with analysts forecasting the discounted sales could top 1 billion dollars. 
    • Open for business! We speak to a number of France's top executives at the Europlace conference, as the chairman of Engie tells CNBC Brexit will be a boon for Paris as a financial centre. 
  • Marks and Spencer group revenue increased 2.7 percent in the 13 weeks to July 1.
    The retailer was trading in Q1 was in line with its expectations and it is on track to deliver its plan. Clothing and home revenue was down 0.5 percent. Food revenue increased 4.5 percent. International revenue increased 3.8 percent.
  • Pearson is selling its stake in Penguin Random House for $1 billion. It is selling a 22 percent state in the publisher. This will generate total net proceeds of around $1 billion. 
    Pearson promises to return £300 million of surplus capital to shareholders via a share buyback.
  • U.K. regulator OFCOM has announced rules for auctioning new mobile spectrum. It will auction licenses for 190 mhz of spectrum in two frequency bands later this year.
    OFCOM says the auction rules are designed to reflect recent market developments and safeguard competition. 
    Caps on the spectrum being auctioned is to reduce BT/EE's overall share of mobile spectrum. The overall cap means Vodafone could gain a maximum of 160 mhz of spectrum across the two frequency bands.
  • China car sales are up 3.8 percent in the first half of the year. China June vehicle sales were up 4.5 percent year on year versus a fall of 0.1 percent in May, according to the country's industry association.
  • Patrick Armstrong, CIO at Plurimi Investment Managers, says the biggest risk for investors is how low the bar is for the Federal Reserve.
    They’ve told us what they intend to do, the market’s not believing any of it. The Fed says they’re going to hike again this year, the market says 50-50. The Fed says 3 or 4 times next year; the market says it’s not going to happen at all.
    If you look at the economic situation, the only missing ingredient is inflation and I think what is much more important to the Fed is employment levels.
  • Bertelsmann is buying a 22 percent stake in Penguin Random House from  Pearson. Bertelsmann says the acquisition sets the enterprise value of Random House at $3.55 billion.
    It adds that the acquisition fives it the right to appoint the company's chairman.
  • Croatia is taking steps that would make it eligible to join the euro zone single currency. The country reduced its public debt relative to GDP for the first time in almost a decade last year. The move brings Croatia nearer to the levels required for euro currency membership. Karen is at the IMF Conference in Dubrovnik which is aimed at spurring convergence in Central, Eastern and Southeastern European economies. 
    She spoke to Boris Vujčić, governor of the Croatian National Bank, who explained why Croatia wants membership of the euro zone.
    The experience of entering the EU was very positive for Croatia. Basically the recovery that we are seeing now is primarily a consequence of Croatia joining the union in 2013 and the exports boom coming after that. 
    Now when you look at the euro zone perspective of Croatia, one has to have in mind that Croatia is a heavily euroised economy anyway. About three quarters of savings in Croatian banks are in euros.
    He says that once the economy is heavily “euroised”, there is little space to play with the exchange rate, but there is still a foreign exchange risk in the interest risk. Joining the euro would eliminate that risk and have little cost for Croatia.
  • The Marks and Spencer CEO is speaking to shareholders following the Q1 results. He says the firm had 27 fewer promotions in clothing in the first quarter compared to the first quarter last year.
    The CEO says food inflation was about 2 percent in Q1. He says "I'm delighted with where we are" on clothing.
  • Cryptocurrencies need to be regulated or they risk going out of control as more people invest in these digital assets, the head of a major Chinese bitcoin exchange platform warned on Tuesday.

    Bitcoin needs regulation, says CEO of Chinese exchange

    Without proper rules and regulations in place, cryptocurrencies can run amok, says BTCC CEO Bobby Lee.
  • European markets open in less than half an hour. The opening calls predict a higher open for the major markets. The FTSE is called 9.5 points higher, the DAX up 43.5 points and the CAC up 12.5 points.
  • Speaking at the World Petroleum Congress in Istanbul, the CEO of French firm Total says the market will face a supply shortage by 2020, Reuters reports. The CEO says Total's breakeven point fell from $100 per barrel to $50 per barrel.
    The CEO adds that Brazil's deepwater field can be as profitable as shale.
  • Patrick Armstrong, CIO of Plurimi Investment Managers, explains why he is long on European integrated oil companies and short on Exxon.
    The market values a barrel of oil produced and refined by Exxon 50 percent more than it does one produced and refined by Total. And you’ve got a U.S. discount which makes sense in some industries, I think it’s too wide in every industry, but in oil, it’s the same commodity being produced and it’s very hard to justify why Exxon trades at 10 times… while Total trades a little bit above 6. It’s an extreme multiple difference.
  • Dan Yergin, vice chairman of IHS Markit, says we are going to see slower growth in U.S. shale in 2018.
    He also discussed the lack of stability in the oil industry.
    There never has been long-term stability; you get 3 or 4 years in which you have a consensus agreement moving in one direction or the other. Clearly right now, the question is how long is this rebalancing going to take in the market, particularly with costs coming down and supply coming in.
  • Michael Cohen, head of energy research at Barclays, says in the short-term they continue to maintain a constructive view on oil prices.
    We’re still in the midst of the summer season, but this morning and over the course of the last month we’ve seen indications that the longer-term view for 2018 through 2020 and then out through 2025 is a much lower price expectation than what we had before.
    The reason for that mainly is we’ve got too much supply right now. We’re still sitting on 3 billion of oil in inventory. And U.S. producers are doing more with less. They were able to add more volume in 2016 than they were in 2012 at half the price. 
  • European markets have opened modestly higher.
    These are the stock sectors moving the market this morning.
  • These are the individual European markets. The FTSE 100 is struggling to remain positive, while the Swiss SMI is negative.
  • Pearson is selling a 22 percent stake in Penguin Random House to joint venture partner Bertelsmann, for around $1 billion. This in a bid to strengthen its balance sheet, and return £300 million of capital to shareholders. The British publisher will still retain a 25 percent stake in Penguin.
  • Pearson has sold a 22 percent stake in Penguin Random House to Bertelsmann for around $1 billion, causing shares in Pearson to rise almost 3 percent in Tuesday's session.
    Pearson retains 25 percent of the publisher, while Bertelsmann controls 75 percent. Bertelsmann says the acquisition now gives it governing right, including the right to appoint the board’s chariman, adding that it has no plans to buy the remaining 25 percent.
    The sale sets the enterprise value of Penguin Random House at $3.55 billion.
    Pearson’s CEO says the company is “bang in line” with the guidance it set in January, Reuters reports.
    Pearson’s CFO says the improved balance sheet will give the company the confidence to invest in its digital business.
    Pearson said it plans to return £300 million of surplus capital to shareholders following the sale.
  • Fatih Birol, executive director of the IEA, says the global energy industry spent 12 percent less last year than the previous year.
    The investment fell down for oil, gas, electricity, altogether. A big decline on the overall spend. That’s number one.
    Number two, a surprise to me as well, we have been talking about the oil industry being the backbone of the energy industry for years and years. Last year, for the first time, electricity sector investments, that’s going to power generation, transmission and others, overtook the entire oil and gas industry.
    Global energy investment fell 12 percent in 2016 to $1.7 trillion, according to the latest IEA report. The report added that China remains the largest destination for energy investment, while India is moving to the centre stage of energy affairs.
  • Investment in electricity generation is overtook investment in oil and gas for the first time last year, according to the latest IEA report.
    Oil prices are up more than half a percent today.
  • These are the top headlines this morning:
    • The world's biggest staffing companies fall to the bottom of the Stoxx 600  after Deutsche Bank downgrades the likes of Adecco and Randstad to 'sell' saying they do not see them rerating European employment levels.
    • Pearson looks to beef up its books, selling a stake in publisher Random House for one billion dollars in an effort to strengthen its balance sheet. 
    • The White House defends Donald Trump Junior's meeting with a Russian lawyer last year, as a new report suggests he knew the person offering compromising information on Hillary Clinton had Russian government ties.
    • Russia's energy minister Alexander Novak tells CNBC the OPEC - non-OPEC deal is already leading to positive effects in the oil market, but more can be done to cut oversupply.
  • An earthquake of 6.8 magnitude strikes off New Zealand's south island, according to the USGS. The earthquake hit 214km north-west of Auckland Island.
    The Pacific Tsunami Warning Center says there is no tsunami threat from the earthquake.
    The New Zealand dollar fell to a more than two-week low of $0.7223 after the report of the earthquake, according to Reuters.
  • Janet Yellen testifies in Congress this week, with investors watching closely for clues on when the next interest rate hike may be. FOMC minutes released last week suggest the Fed chair could call for a reduction in the its bond holdings and mortgage backed securities by August.
  • Half an hour into Tuesday trade and these are the winners and losers on the Stoxx 600.
    Tryg is up at the top after it beat expectations by reporting Q2 profit after tax of 714 million Danise krona and an ROE of 21 percent after tax.
    Adecco and Randstad have fallen towards the bottom of the index after Deutsche Bank cut its rating on both from hold to sell. Man Group's target price and rating was cut by Jefferies from buy to hold.
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