World Markets Live - July 11 - CNBC Live Events
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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.

    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.
     
    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.
     
     
     
    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. 
     
    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.
     
     
    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.
    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.
    European markets have opened modestly higher.
     
     
    These are the stock sectors moving the market this morning.
     
     
     
    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.
    Russia's Oil Minister Alexander Novak discussed with CNBC at the World Petroleum Congress in Istanbul. He said he is seeing positive effects from the OPEC and non-OPEC production cuts, and that the industry is in a better position than six months ago.
     
    Indeed in three years a lot has changed. We have seen a serious fall in prices that's on the one hand. The oversupply of reserves we saw on the market during the time when there were high prices has accumulated. But on the other side, I think the industry is further forward than it was three years ago because new technology has emerged.
     
    Technology is getting better, the industry has become more competitive and is competing with renewable sources of energy. Therefore, production costs are constantly going down. And in this sense we can say that the industry is at a higher level. But we haven't yet got through the price crisis and likewise with the reduction of reserves.
     
    Although, currently I am seeing since the agreement between OPEC and non-OPEC countries has begun to come into force, half a year has passed and we are  seeing a positive effect and this is a much better position than we had half a year ago. 
     
     
     
    Singapore's national wealth fund Temasek says shareholder return is up more than 13 percent. It was also powered by gains in shares of Chinese banks and Singapore firms. 

    CNBC's Sri Jegerajah caught up with Rohit Sipahimalani, the joint head of portfolio strategy, and asked him about his strategy on Europe.
     
    Our focus on Europe is primarily on global companies in Europe that just happen to be headquartered out there. So really these companies are benefiting from the rebound in global growth that you’re seeing, and I think that’s what we’re focused on.
     
    Our focus is on companies that have strong sustained earnings growth which we think will offset any declines in multiples.
    Venezuela's PDVSA says it sees $50 billion in investment over the next seven years to increase oil production capacity by 1 million barrels per day.
     
    This after the company said in a statement it is guaranteeing the "legal security" for all foreign companies in the country, rebuffing a government adviser's suggestion that their operations could be nationalized, according to Reuters.
    Severin Cabannes, deputy CEO of Societe Generale, says there is a window of opportunity to accelerate European integration.
     
    One of the key topics is capital market union acceleration integration. Europe today is suffering from a lack of long-term financing and the European authorities… are going to favour long-term financing clearly. We have to harmonise a legal framework.
     
    He says it’s at the top of the European Commission’s agenda. He says it is too early to know if businesses will move to France as a result of Brexit.
     
     
    These are the top headlines this hour:
     
    • 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', citing European employment levels.
    • 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.
    • 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.
    Global energy investment totalled around $1.7 trillion in 2016. That's according to a new report from the International Energy Agency. The report says upstream oil and gas investment rebounded modestly in 2017. This as the oil industry grapples with oversupply that is pushing down global prices.
     
    CNBC’s Steve Sedgwick spoke to Osmar Abib, head of oil & gas at Credit Suisse, who says the recent oil price volatility has tempered investor sentiment.
     
    We’ve had a record amount of equity raised in the past two years for U.S. independent shale players. The recent oil price outlook has certainly tempered that quite a bit, but we believe that’s going to correct itself and there will be quite a bit of demand going forward.
     
     
     
    Sanofi is buying U.S. vaccines biotech company Protein Sciences, for an initial price of $650 million. The French drugmaker will pay an extra $100 million upon the achievement of certain milestones. Sanofi says the deal will expand its flu vaccine portfolio.
     
     
    Shares in the drugmaker are down a quarter of a percent today.
     
     
     
    M&S reported a 0.5 percent drop in quarterly like-for-like sales, but kept its full-year guidance unchanged. Chief executive Steve Rowe said recovery is on track, and that first quarter trading was in line with the company's expectations.
     
    Like-for-like clothing sales fell less than analyst forecasts, with a 1.2 percent drop in the first quarter.

    Shares have dropped 2 percent in Tuesday's session on the results.
     
     
    U.S. earnings season could see record returns according to S&P Capital IQ. The company expects growth to be led by energy, financials and information technology. Energy earnings alone are expected to jump by 387 percent. JP Morgan and Wells Fargo announce their earnings later this week.
     
    Peter Rosenstreich, head of market strategy at Swissquote Bank, said they are not so optimistic as S&P Capital IQ.
     
    We take things from a macro standpoint, so we look at things like the response of the U.S. consumer to the economic data and we just haven’t seen a strong recovery in retail sales. We don’t expect the U.S. domestic market to really outperform at this level. We think that Q1 earnings were pretty much as strong as they’re going to get. I think we’re going to see a sort of deflation in Q2.
     
     
     
    Oil has been on the move this morning, as questions about supply has some banks cutting their price forecasts. 
     
     
    Meanwhile, at the World Petroleum Congress in Istanbul, Russia's Oil Minister Alexander Novak discussed with CNBC what he sees as the strategy to leave the OPEC and non-OPEC production cut deal when in ends in March 2018.
     
    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. 

    A couple more words. When the first agreement was signed for six months. People immediately started asking me, what's going to happen in six months. And then as soon as we extended it for another nine months everyone is interested in what will happen in nine months. It's an endless and eternal question. We really need to see how the balancing goes, and the balancing is going very well. 
     
     
     
    Shares in Japanese automaker Suzuki fell as the firm came under scrutiny over possible misuse of vehicle emissions software. 
     
    Dutch prosecutors announced they will investigate Suzuki after high emissions were found.
     
     
    Emerging markets will take center stage at the Europlace conference in Paris, with talks about sustainability and investment opportunities in Africa.
     
    CNBC’s Claire Fournier spoke to Christophe Charlier, chairman of Renaissance Capital, about whether or not Paris can become an alternative to the City of London.
     
    Absolutely, given France’s cultural ties and economic ties around emerging markets and the presence of major international French banks already in London and internationally, as well as large pension funds like Amundi, I think France and Paris has a great chance to become even more of an international market than it already is.
     
    Charlier says Renaissance Capital believes strongly that investors should be looking for yield and growth in emerging and frontier markets. He recommended Ghana, Egypt and Kenya.
    Iran's deputy oil minister of petroleum Amir Hossein Zamaninia says by 2021, the country will have around 365 million cubic meters a day of gas for export and other uses, according to Reuters.
     
    Zamaninia says recent deals signed with China and France's Total show that international companies believe the return of economic sanctions are "very unlikely, if not impossible."
    Shares in Pearson are continuing to fall. The stock is set for its biggest one-day drop in six months.
     
    Pearson is now at the bottom of the Stoxx 600 index.
     
     
     
    Tata Steel says it has signed a definitive agreement with Liberty House Group for the sale of its Hartlepool saw pipe mills, Reuters reports.
     
    Tata Steel says it will invest £1 million to increase capability at its 20-inch mills.
     
    Tata Steel says the sale will complete its portfolio restructuring to focus on its strip products supply chain. It expects the deal to be completed within the next few months.
     
    According to Tata Steel, the "sale is an important step towards developing a more sustainable future for the rest of our U.K. business."
    French Prime Minister Edouard Philippe says he plans to boost investments to France by introducing tax cuts for the wealthy. The move comes as a clear break from Francois Hollande's Government which imposed a 75 percent income tax on high earners.
    The move also comes as France makes moves to become more competitive and attractive to international companies.
     
    Yves Perrier, CEO of Amundi, says he thinks the new government is serious about cutting expenses and reducing the deficit.
     
    Clearly I think this government has embarked in order to and at the same time reduce the social spending and as a consequence reduce taxes. I think that France is in a good orientation.
     
    Yves says he is really optimistic about France's future.
     
     
    Pearson shares hit the bottom of the Stoxx 600 in Europe following its decision to sell a 22 percent stake in Penguin Random House.
     
    Pearson's U.S.-listed shares are now trading down about 5 percent in premarket trade.
     
     
    JP Morgan CEO Jamie Dimon says we have to be prepared for a hard Brexit. 
     
    Dimon says where a company's legal entity is based after Brexit does not mean that is where their people are based.
     
    Dimon says he thinks the U.S. will be a very small beneficiary of Brexit if European politicians negotiate a good deal.
     
     
    The U.S. small business confidence index falls 0.9 percentage points to 103.6 in June, according to the NFIB.
    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 and ethereum, two popular cryptocurrencies, have seen rapid price swings in recent months. In May, a 19 percent price fall for bitcoin saw nearly $4 billion in value wiped off. Last month, the price of ethereum crashed as low as 10 cents from around $319 in about a second on the GDAX cryptocurrency exchange. Because there's bullishness in the market, some predict bitcoin's price to soar as high as $100,000 in a decade.
     

    Bitcoin needs regulation, says CEO of Chinese exchange

    CNBCWithout proper rules and regulations in place, cryptocurrencies can run amok, says BTCC CEO Bobby Lee.
    Trump says he is "working hard to get the Olympics
     
    for the United States".
    Billionaire businessman George Soros has spoken out against the "deeply troubling developments" in his native Hungary where the right-wing government has appropriated a photo of his face for a $12.9 million anti-immigration election campaign.

    The billboard campaign casts Soros, a Jewish survivor of the Nazi occupation, as a supporter of illegal immigration, and runs with the slogan: "Let's not let Soros have the last laugh."
     

    George Soros hits out at Hungarian government for exploiting ‘Europe’s darkest hour’ in $13 million campaign

    CNBCBillionaire businessman George Soros has spoken out against the “deeply troubling developments” in his native Hungary where the right-wing government has appropriated a photo of his face for a $12.9 million anti-immigration election campaign.
    The pan-European Stoxx 600 was down 0.39 percent, with major bourses mixed and most sectors in the red.

    Autos, banks and basic resources continued to move higher during the morning session despite all other sectors slipping.
     
     
    Kerim Derhalli, CEO and founder of invstr, reacts to Bank of England's Ben Broadbent’s speech:
     
    With recent comments from Michael Saunders and Mark Carney suggesting that the first interest rates change in a decade could be a real possibility, it was inevitable that Ben Broadbent’s speech today was going to be heavily scrutinised.

    However, given that UK economic growth was 0.2% in Q1 2017, making it the weakest performance in the G7, and with Brexit uncertainty still persisting, it’s unsurprising that Broadbent opted to keep his cards close to his chest.
    European crude and oil products stocks are down 0.2 percent month-on-month to 1.15 billion barrels in June, according to Euroilstock.
     
    Crude oil stocks were 491.44 million barrels, up 0.2 percent from May. 
     
     
    SocGen CEO Oudea says could move 300-400 corporate and investment banking jobs from London, out of 2,000 overall CIB jobs in London, as part of Brexit. 
     
    Oudea further adds that the bank will concentrate relocation of jobs mostly to Paris, given new government reform plans. That's according to Reuters.

    US stocks open flat as the threat of high yields caps gains

    CNBCU.S. equities kicked off Tuesday trading little changed as investors weighed the possibility of higher sovereign bond yields.
    The sums of money the European Union is to demand from Britain as part of its Brexit settlement "seem to be extortionate", British Foreign Secretary Boris Johnson said on Tuesday.

    The EU wants an agreement on how the "Brexit bill" will be calculated before launching talks on a free trade agreement. It puts Britain's financial settlement at tens of billions of euros and includes covering a share of future EU budget commitments made while it was a member. 

    Asked by a lawmaker in parliament if the EU should be told to "go whistle" if it wants money from Britain to leave the bloc, Johnson said: "I think that the sums that I have seen ... seem to me to be extortionate and I think go whistle is an entirely appropriate expression." The phrase means to ask for something with little chance of obtaining it.
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