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.

  • 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.
  • Thyssenkrupp says it is to cut between 2,000 and 2,500 jobs. The company says it aims to complete the job cuts by the end of the fiscal year 2019/2020.
    Shares are up sharply today, rising nearly 3 percent.
  • 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.
  • Italy's industrial output for May increased 0.7 percent month on month, beating expectations. Working day output increased 2.8 percent year on year, according to the ISTAT. Both readings beat April's figures.
  • 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.
  • Iran's oil official says they see oil production capacity rising by 0.8 million barrels per day in 5 years. Current capacity is 4 million barrels per day, according to Dow Jones
    The official says Iran needs $140 billion investment in its oil and gas fields over the next 5 years, and expects two-thirds of investment to come from abroad. Iran hopes to sign 10 more oil and gas contracts in the coming year.
  • 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.
  • Pearson shares have reversed earlier gains, falling more than 3 percent. The company announced it had sold a 22 percent stake in Penguin Random House for around $1 billion.
  • The Bank of Italy says Italian bank loans to non-financial companies was up 0.3 percent in May, versus a 0.2 percent rise in April.
    Gross bad loans at Italy-based banks total 202.116 billion euros in May, compared to 203.326 billion euros in April, according to the central bank.
  • Looking ahead and U.S. markets are called broadly flat, according to future values. Only the Dow is expected to make a gain, called up just 8 points.
  • 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.
  • Vietnam posts a $292 million trade deficit for June, according to the country's customs office. 
    Vietnam exported 122,000 tonnes of coffee in June.
  • HSBC expects the Bank of Canada to raise interest rates in July and October 2017. The bank previously expected rates to be on hold until Q4 2018.
  • 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. 
    The speech is due at 11:00 a.m. BST (10:00 a.m. GMT).
  • 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.
  • Yves Perrier, CEO of Amundi, says he thinks the risk is over in Italian banks.
    Yes, I think so, because this sector has been restructured and especially with the big capital increase of Unicredit, which was one of the major banks. The restructuring of Monte dei Paschi and... the two medium-sized banks of Italy. Yes, really, I consider that in the Italian banking sector, most of the problems are behind.
    On the topic of central banks, he says they will move slowly on changing interest rates as debt is still very high and we cannot afford a too strong change.
    Of course they will increase, but I'm sure the central banks will manage this smoothly.
  • 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.

    Electricity investment overtakes oil and gas for the first time ever, IEA says

    Fossils fuels are no longer the largest recipient of investment in the energy sector, the latest report from the International Energy Agency said Tuesday.
  • U.K. Prime Minister Theresa May is due to give a speech at 11:00 a.m. BST. This is ahead of launching a report into the employment rights of workers in the "gig economy". 
    Unions and employment lawyers have allegedly criticised the report for doing little to help the growing numbers of works in companies such as Uber and Deliveroo.
    Chris McCullough, CEO and co-founder at Rotageek, says the government has to recognise the "gig economy" is becoming the new normal.
    Flexibility empowers employees to have a better work-life balance, whether it is to fit their job around childcare, looking after a family member or even things like practising a sport or pursuing a long-term dream as a side-project. There shouldn't be a trade-off between job security and flexibility. At the same time, companies seeing rapid growth shouldn’t be blocked from ramping up their recruitment. To strike the balance here, the government needs to listen to both sides.
    Start-ups have continued to challenge the norms around flexibility, but the legal framework isn’t yet in place and governments need to catch up to this trend as quickly and as efficiently as possible.
  • Lockheed Martin reports the successful test of the Terminal High Altitude Area Defense (THAAD) system at intercepting a target. That's according to Dow Jones.
    The missile defence test was led by the U.S. missile defence agency. The test was the first intermediate-range ballistic missile (ISBM) intercept for THAAD and the 14th successful intercept in 14 tests since 2005.
    The test took place in Alaska, where the system detected, tracked and intercepted a threat representing an IRBM.
    The THAAD system is slightly controversial. A system is deployed in South Korea and people in the country have protested against it, fearing it may lead to war. It has also strained relations with China.
  • 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.
  • Pepsico reports second quarter earnings per share of 91 cents. It reports a revenue beat of $15.71 billion against $15.599 billion expected.
  • Irish residential property prices grew 2.2. percent month on month in May. Prices grew 11.9 percent year on year.
  • JP Morgan CEO says ops could be in several EU countries post-Brexit
    JPMorgan Chase & Co Chief Executive Jamie Dimon said on Tuesday the bank would probably use Frankfurt as the legal domicile of its European operations after Brexit, though jobs could be put elsewhere as well.

    "We will probably use the Frankfurt bank, because we will have the licenses already," Dimon said during a banking conference in Paris.

    "But the people could be in Paris, or Netherlands or Madrid...We haven't decided yet, we are here to talk to people," Dimon added.
  • 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.
  • U.S. stock index futures pointed to a relatively flat open on Tuesday, as investors prepared themselves for a slew of data announcements and speeches by members of the U.S. Federal Reserve.
    On the data front, the National Federation of Independent Business (NFIB) small business optimism index slipped to 103.6 in June from 104.5 in May. Wholesale trade and the Labor Department's JOLTS (Job Openings and Labor Turnover Survey) report are also due at 10 a.m. ET.
  • 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.
  • U.S. retail sales for the first week of July fell 1.1 percent versus June. Sales were up 2.4 percent compared to the same week a year ago.
  • German Chancellor Angela Merkel has called for the ability to intercept private messaging services to fight terror.
    She said it must be possible to intercept messenger services to prevent terrorism, but it has to be as tightly regulated as tapping phone is today, according to Reuters.
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