World Markets Live - July 13 - CNBC Live Events
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CNBC Live Events

World Markets Live - July 13

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. How are you this morning? Well, markets generally seem happy. Stocks across the globe are trading higher as markets interpret Yellen as less hawkish than expected. Here are your morning calls for Europe:
     
     
     
     
  • Here are your top stories at this hour:
     
    • Stocks rally around the world as Fed chair Janet Yellen strikes a slightly less hawkish tone than expected, emphazing her concerns about low inflation.
    • Media mogul Barry Diller tells CNBC he thinks Donald Trump's presidency is "just a joke" criticizing the White House's immigration policies
    • Novartis wins support for a pioneering cancer medicine, as a recommendation to the FDA could pave the way for approval of the first US gene therapy. 
    • Brazil's former president Luiz Ignacio Lula is sentenced to nearly 10 years in prison on corruption charges, boosting Brazilian stock markets.
       
  • Fed Chair Janet Yellen struck a surprisingly dovish tone in her testimony before Congress. She told lawmakers that the central bank could still adjust its policy, if the recent undershoot in inflation continues. But Yellen added that the U.S. economy warranted a gradual rise in rates.
     
    The Fed chair said 2 percent inflation is still the target, and the FOMC is monitoring the situation closely. The Fed chair was also asked about the health of the U.S. economy, and how it will impact the path and timing of rate normalization
     
    The Committee continues to expect that the evolution of the economy will warrant gradual increases in the federal funds rate over time to achieve and maintain maximum employment and stable prices. That expectation is based on our view that the federal funds rate remains somewhat below its neutral level, that is the level of the federal funds rate that is neither expansionary, nor contractionary and keeps the economy on an even keel.
     
     Fed Chair Janet Yellen Testifies Before House Financial Services Committee : News Photo
    by Spriha Srivastava edited by luke.graham 7/13/2017 5:07:15 AM
  • Yellen: Fed likely to unwind stimulus despite low inflation

    CNBCIn remarks for her testimony on Capitol Hill, she said that the balance sheet, eventually will be "appreciably below" its current level.
  • The Canadian dollar hit its highest level in over a year, after the Bank of Canada raised rates for the first time since 2010. Lenders in the country quickly hiked prime rates by a quarter of a percentage point, matching the central bank's move. This makes the B-O-C the first major reserve bank to follow the Fed in tightening.
     
     
  • President Donald Trump is on the way to France for this year's Bastille Day events. Before leaving, he said he did not fault his son for meeting with a Russian lawyer during the presidential campaign. Speaking with Reuters, Trump said he was not aware of the meeting between his Donald Trump Junior and the attorney until a couple of days ago.
     
    President Trump And First Lady Depart White House En Route To Paris : News Photo
  • Here are your top stories at this hour:
     
    • Stocks rally around the world as Fed chair Janet Yellen strikes a slightly less hawkish tone than expected, emphazing her concerns about low inflation.
    • Media mogul Barry Diller tells CNBC he thinks Donald Trump's presidency is "just a joke" criticizing the White House's immigration policies
    • Novartis wins support for a pioneering cancer medicine, as a recommendation to the FDA could pave the way for approval of the first US gene therapy. 
    • Brazil's former president Luiz Ignacio Lula is sentenced to nearly 10 years in prison on corruption charges, boosting Brazilian stock markets.
  • During the first quarter of 2017/18, Alstom recorded €1,909 million of orders, including two contracts in Canada for almost 100 light rail vehicles, a first metro system contract in Vietnam, contracts for regional trains in Senegal and Germany, a fleet modernisation project in the USA, as well as part of metro system contract for Manila in Philippines.
     
    During this first quarter, commercial momentum was good, with several major awards in all regions especially in North America. Meanwhile, the Group keeps on innovating and unveiled several breakthrough technologies for smarter mobility. Alstom confirms its 2020 objectives. said Henri Poupart-Lafarge, Alstom Chairman and Chief Executive Officer.
  • Less than 24 hours after that meeting, Macron will host Angela Merkel at the Elysee Palace. According to the Handelsblatt newspaper, the German and French finance ministers will propose a plan to harmonize the two countries' corporate tax policy.  US President Donald Trump is also heading to Paris to celebrate Bastille Day.
     
    G20 Nations Hold Hamburg Summit : News Photo
  • Chinese exports came in higher than expected in June. Global demand powered an 11.3 percent year-on-year increase. Analysts expected just under 9 percent. Imports also rose at a faster pace than forecast, growing 17.2 percent year-on-year. The report also showed Chinese trade with North Korea rising over 10 percent in the first half of this year.
     
     
     
     
  • Here are your top headlines at this hour:
     
    • Stocks rally around the world as Fed chair Janet Yellen strikes a slightly less hawkish tone than expected, highlighting her concerns about low inflation.
    • Media mogul Barry Diller tells CNBC he thinks Donald Trump's presidency is "just a joke" criticising the White House's immigration policies
    • Novartis wins support for a pioneering cancer medicine, as a recommendation to the FDA could pave the way for approval of the first US gene therapy. 
    • Brazil's former president Luiz Ignacio Lula is sentenced to nearly 10 years in prison on corruption charges, boosting Brazilian stock markets.
       
  • Germany's consumer prices, harmonised to compare with other European countries, rose by 0.2 percent in June from the previous month and by 1.5 percent from the previous year, the Federal Statistics Office confirmed on Thursday.

    On a non-harmonised basis, consumer price inflation for June was also confirmed. The national index was up 0.2 percent from May and rose by 1.6 percent from the previous year.
  • Karen takes us through markets and looks at the aftermath of Yellen testimony.

  • Shares in Daimler indicated down more than 4 percent. German carmaker Daimler has been accused of selling over a million cars with excessive emissions in Europe and the United States, Sueddeutsche Zeitung newspaper said on Wednesday, citing a search warrant issued by a Stuttgart court. 
  • British junior Brexit Minister Baker says will not pay a penny more than we need to for Brexit bill, that's according to Reuters citing Sky news
  • Russia central bank chair Nabiullina says global economy faces new cyber risks that threaten financial systems, economic growth. Nabiullina says structural reforms are needed urgently for stronger economy. 
  • The European Union's top Brexit negotiator says the U.K has progress to make before talks can move to a future trade deal. Michel Barnier says it's inconceivable for talks to continue without settling initial issues like citizens' rights. Barnier also fired back at U.K. Foreign Minister Boris Johnson, who said the EU can "go whistle" over Britain's exit bill.  
     
    On your last point, I don't want to make any comment. I am not hearing any whistling, just the clock ticking
     
     EU Brexit Negotiator Visits The Border Between Northern Ireland And Ireland : News Photo
  • Here are your top headlines at this hour:
     
    • Stocks rally around the world as Fed chair Janet Yellen strikes a slightly less hawkish tone than expected, highlighting her concerns about low inflation.
    • Daimler shares expected to drop around 4 percent at the open, following a report the German carmaker sold more than a million cars with excess emissions.
    • Novartis wins support for a pioneering cancer medicine, as a recommendation to the FDA could pave the way for approval of the first US gene therapy. 
    • Racking up the clicks. UK online retailer ASOS says it now sees its full year performance at the top of the range, after posting a 32 percent rise in sales for the four months ending in June. 
       
  • Qatar June inflation rises to 0.8 percent year on year from 0.1 percent in May. The sanctions imposed by several Arab states against Qatar seem to be having some effect.
  • Japan's Fast Retailing missed estimates with a 7.5 percent profit. The owner of Uniqlo booked over 49 billion yen for the three months through May. The company described sales abroad as "brisk".
     
    Net profit was 120.11 billion yen. Pretax profit was 195.48 billion yen.
     
    The company saw strong performance in its Asia market.
  • Online fashion retailer Asos has posted retail sales growth of 32 percent in the four months to the end of June. They booked a total of 660 million pounds. Asos saw U.K. sales increase by 16 percent and international sales up 44 percent. 
     
    Asos said it expected full-year pretax profit to be in line with the market consensus - 79.4 million pounds.
     
  • Nivindya Sharma, senior editor of WGSN Instock, says Asos' results are  impressive.
     
    There is still space for Asos. Online fashion in general is one of the areas within retail that is performing really strongly. Asos, by virtue of being one of the first people out there, one of the first big retailers to capitalize on their market, still has potential for growth.
     
     
     
  • U.S. President Donald Trump arrives in France on two-day visit. That's according to Reuetrs.
  • French final June EU-harmonised CPI rises 0.8 percent year on year. This is unchanged from the flash estimate.
     
    Month-on-month inflation was unchanged.
  • Euro is trading higher against the dollar as inflation numbers come through from the region:
     
     
  • EDF Energy Renewables, a subsidiary of EDF Energy, has bought 11 wind farm projects under development from the carbon trust enterprise Partnerships for Renewables. That's according to Reuters.
  • Air Force One has arrived in France.
     
    U.S. President Donald Trump is visiting Paris for a two-day trip. He was invited by President Emmanuel Macron to attend the Bastille Day celebrations. 
     
     
  • CNBC will be discussing Trump's visit to Paris with Segolene Royal, the President of COP 21 and a former French Presidential candidate, later this morning.
     
     
  • European markets are now open for trading. The pan-European Stoxx 600 has opened slightly higher as investors keep a keen eye on earnings and Yellen's comments:
     
     
     
     
  • Spain's final reading of June CPI inflation is 0.0 percent month on month, matching forecasts. It fell 0.1 percent in May, according to INE.
     
    June's final EU-harmonised reading of CPI is up 1.6 percent year on year and 0.1 percent month on month.
  • Major market indexes have opened mixed across the board as investors eye new earnings reports and look ahead to more comments from U.S. Federal Reserve Chair Janet Yellen who will testify to Congress for a second day.
     
     
  • Malaysia's central bank keeps its overnight policy rate at 3 percent. The central bank says the stance of its monetary policy is accommodative and supportive of economic activity.
     
    The central bank says headline inflation is 3.9 percent in May, and is expected to moderate in the second half of the year.
  • German carmaker Daimler has sold more than 1 million cars with excessive emissions, this according to a report from Sueddeutsche Zeitung.
     
    Citing a search warrant issued by a Stuttgart court, the report says models with excessive emissions were sold from 2008 to 2016 in both Europe and the United States.
     
    A spokesman for the automaker declined to comment on the investigation to CNBC, but said that it planned to co-operate fully with the authorities.
     
     
    by Spriha Srivastava edited by luke.graham 7/13/2017 7:04:57 AM
  • SAP has opened an investigation into its South African unit after local media reported the technology company paid kickbacks to a firm linked to the politically prominent Gupta family. 

    The German technology firm has put four senior executives on leave, and has hired an international law firm to conduct a probe into the allegations. 
     
     
  • Generali is looking to sell its 44 billion euro life insurance portfolio in Germany. That's according to Reuters, which reports that the sale would be part of a restructuring in Europe, and one of a number of strategic options being weighed by the Italian insurer.
     
     
  • A new cancer gene therapy from Novartis has won support from an FDA panel. The backing paves the way for the first US gene therapy, which would treat a form of leukemia. The treatment is given just once, and is expected to cost up to 500-hundred thousand dollars. 
     
     
  • Online fashion retailer Asos has posted retail sales growth of 32 percent in the four months from March to June, a total of 660.1 million pounds. Asos saw U.K. sales increase by 16 percent and international sales up 44 percent. The retailer is forecasting sales growth for the full year at the upper end of its 30 to 35 percent guided range and full year pretax profit of 79.4 million pounds.
     
     
  • New contracts in North America helped Alstom post a 6 percent rise in first quarter sales. The French train maker maintained its 5 percent organic growth outlook and said it expected its EBIT margin to hit 7 percent by 2020. 
     
     
  • German carmaker Daimler has sold more than 1 million cars with excessive emissions, this according to a report from Sueddeutsche Zeitung.
     
    George Galliers, autos analyst at Evercore ISI, says they are skeptical that any cars will be banned as a result of the excessive emissions.
     
    It’s worth noting that none of Volkswagen’s vehicles have been banned, per say, and the company is actually undertaking a voluntary recall to fix the emissions problems there. So the idea that a million cars of Volkswagen’s would be banned seems farfetched to us.
     
    A Mercedes-Benz SUV manufactured by Daimler AG
  • High aircraft leasing costs and rising oil prices have hurt Norwegian Air's second quarter results. The airline missed earnings expectations and revised down its growth outlook. Norwegian now expects production growth to increase by 25 percent instead of 30 percent.   
     
     
  • Let's take a look at the best and the worst performing stocks this morning:
     
  • George Galliers, autos analyst at Evercore ISI, says Daimler has been in talks with the U.S. EPA with regards to its diesel engines following the Volkswagen emissions scandal.
     
    We would like to point out that the fact that our questions around OECD devices in diesel engines, questions around real-world emissions, none of this is actually new. From a U.S. perspective we’ll wait and see, but as I said, Daimlar has been in discussions with the authorities for some time now.
     
    Galliers recommends Volkswagen among European automakers as its underlying earnings can continue to surprise to the upside.
  • German carmaker Daimler has sold more than 1 million cars with excessive emissions, this according to a report from Sueddeutsche Zeitung.
     
    Citing a search warrant issued by a Stuttgart court, the report says models with excessive emissions were sold from 2008 to 2016 in both Europe and the United States.
     
    A spokesman for the automaker declined to comment on the investigation to CNBC, but said that it planned to co-operate fully with the authorities.
     
    Shares in Daimler slid lower at the open.
     
    Dieter Zetsche, CEO of Daimler AG
  • Swiss producer/import prices fell 0.1 percent month on month in June, versus a fall of 0.3 percent the month before.
     
    Year on year, prices fell 0.1 percent in in June from growth of 0.1 percent the month before.
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