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.
-
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.
-
-
These are the top headlines half an hour into Thursday's market session.- Not immune to that! Astra Zeneca falls to the bottom of the Stoxx 600 on a report that the UK pharma giant's CEO Pascal Soriot is planning to jump ship to run Israeli generic drugmaker Teva.
- Daimler shares take a hit, following a report the German carmaker sold more than a million cars with excess emissions.
- Stocks rally around the world as Fed chair Janet Yellen strikes a slightly less hawkish tone than expected, highlighting her concerns about low inflation.
- President Trump arrives in France for a Bastille Day visit, just as the Russia controversy heats up back home.
-
-
OFCOM has announced measures for how Openreach will be accountable after it is separated from BT. The regulator expects the newly reformed Openreach to engage with the industry to deliver widespread fibre networks, offering fast and reliable broadband.It will closely monitor BT's compliance with its new commitments and adds that should it become clear the new Openreach is not working,OFCOM will consider new measures. The regulator will establish a dedicated Openreach monitoring unit. -
Qatar Airways' CEO has said it still plans to purchase a stake in American Airlines, despite the U.S. carrier ended the code-share agreement.The company's CEO said he was disappointed by the decision, but that the company would work with other partners in the United States.
Meanwhile, Qatargas has asked its suppliers to set up local operations in Qatar, in a bid to get around sanctions imposed by its Arab neighbours.The state-run company, which is the world's largest LNG producer, said the decision was taken in order to cut the response time for providing materials and service. -
The latest International Energy Agency report on global oil supply and production is due out at 0900 BST.Oil markets will be keen to find out more info on whether the oil market is balancing and if demand is picking up.Oil prices are down today, despite reports that China crude oil imports held at strong levels in June. Imports totalled 36.11 million tonnes. China crude oil imports for the first half of 2017 were up 13.8 percent year on year at 212 million tonnes.
-
German Chancellor Angela Merkel has arrived at the Elysee Palace for a joint cabinet session with President Macron. According to the Handelsblatt newspaper, the German and French finance ministers will propose a plan to harmonize the two countries' corporate tax policy.U.S. President Donald Trump has also landed in Paris. He is in town to celebrate Bastille Day.
Reporting for CNBC, Claire Fournier says this is a "classic" Macron technique of trying to engage with those he may disagree with and try to convince them he is right.What they want to achieve today in the close circles of the President is get off with a new, fresh start with the American president, since there first encounters were a bit weird.They will probably seek to work together on important topics such as counter terrorism and Syria and they will leave aside most probably the dividing issues such as trade. -
The latest IEA report on the oil market has been released.Global oil supply rose by 720,000 barrels per day (bpd) to 97.46 million bpd in June. Production is up 1.2 million bpd from a year ago.OPEC crude output rose 340,000 bpd to 32.6 million bpd, driven by production growth in Saudi Arabia, Libya and Nigeria.However, global demand growth accelerated by 1.5 million bpd in Q2. The IEA forecasts demand for 2017 as a whole to reach 98 million bpd.Oil prices fell after the release.
-
Oil investors are going through a period of waning confidence. That's according to the latest report by the International Energy Agency. The organisation suggests that growing impatience over the re-balancing of the oil market is to blame for money managers slashing long positions in crude futures.The IEA also said that global demand growth rebounded in the second quarter, and called on investors to wait a little longer to find out if the re-balancing process has begun.Neil Atkinson, head of the oil industry and markets division at the IEA, says the rebalancing of the market is on the way.At the moment we’re slightly at the mercy of statistics, waiting for the statistics to catch up with what we think is happening out there.The rebalancing is happening, it’s just a question of seeing that the recent increase in demand, very strong in the second quarter, is going to assert itself. That would mean there would be a deficit in the market as we move through the rest of the year.
-
The latest IEA report on how the oil market performed in June has been released. It found that crude output rose by 720 million barrels a day in June across the world.Output increased 340 million barrels a day in OPEC countries. Meanwhile, oil prices dropped on average $3 to $4 per barrel in June.For more on this story, click here.
OPEC compliance with production cuts at lowest in six months, IEA says
Global oil supply rose in June despite an ongoing deal to cut output, the International Energy Agency noted in its latest market report on Thursday. -
Shares in AstraZeneca are trading near the bottom of the Stoxx 600, on a report the UK pharma company could lose its CEO to generic rival Teva. According to the Calcalist financial website, Pascal Soriot has met with the Israeli company's search committee, and agreed to join as its new chief executive.Meanwhile, 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.John Rountree, managing partner of Novasecta, says this is very significant.Gene therapy has been a long time coming. It’s a complex technology, it’s very difficult to pull off and hats off to Novartis for getting this panel approval.Gene therapy has still got a long way to go. There are competitors behind; there are still some side-effects. I think it’s just good for patients and good for the industry that its showing it can continually innovate.On the topic of side-effects, John says al drugs have some form of side-effect and no treatment is perfect. He says many patients will take the risk as gene therapy can treat life-threatening conditions.
-
-
It is one year to the day since Theresa May became U.K. Prime Minister, and it has been an eventful year.In October, May announced that Article 50 would be invoked by the end of March 2017. In January, she became the first foreign leader to visit newly-inaugurated US president Donald Trump.The month of March saw the first of a series of terror attacks to hit the U.K., in London and later in Manchester.May announced a snap general election, but the move backfired as the Conservatives lost their majority. Negotiations with Northern Ireland's DUP secured a confidence and supply deal for May's party.To see the full slide show on Theresa May's first year as Prime Minister, click here.
In pictures: Theresa May’s first year in office as UK prime minister
CNBCFrom strengthening ties with allies to tackling Brexit, CNBC looks back at what has happened during Theresa May's first year as UK prime minister. -
These are the top headlines for the hour.- Not immune to that! Astra Zeneca falls to the bottom of the Stoxx 600 on a report that the UK pharma giant's CEO, Pascal Soriot, is planning to jump ship to run Israeli generic drugmaker Teva.
- Daimler shares take a hit, following a report the German carmaker sold more than a million cars with excess emissions.
- Stocks rally around the world as Fed chair Janet Yellen strikes a slightly less hawkish tone than expected, highlighting her concerns about low inflation.
- President Trump arrives in France for a Bastille Day visit, just as the Russia controversy heats up back home.
-
The Bank of England says banks expect a slight fall in the availability of mortgage lending in Q3 driven by declines in high loan-to-value lending. This as demand for mortgage lending is expected to rise in Q3.Also, the central bank says banks expect a decrease in the availability of unsecured housing credit in Q3 due to a changing appetite for risk and a changing economic outlook. Banks are expected to further tighten standards for credit cards and other unsecured lending.Credit to the corporate sector is expected to remain unchanged in Q3. -
-
Google won't be liable to pay over 1 billion euros in back taxes to French authorities. A court there ruled in favour of the tech giant, saying it doesn't have sufficient presence in France to justify the bill.The decision follows a six-year-long legal battle over back taxes claims for the years between 2005 and 2010.
-
-
-
-
Ivanka Trump and Jared Kushner have touched down in Sun Valley Idaho to mingle with the world's top media moguls at the Allen & Co technology summit. The annual meeting is known to be a hub for dealmaking.
Ivanka Trump and husband Jared Kushner arrival at Hamburg for the G20 meeting -
-
Jacob Frenkel, chairman of JPMorgan Chase International, shares his view on the U.S. economy.I think it’s important to frame everything in terms of the medium-term, so I’m not impressed by a handful of data; I’m more impressed by the trend that they represent. The way that things are now, it is clear the United States economy is recovering; that growth is picking up; that labor markets are performing much better than many had expected; unemployment is at the lowest level since ages.And even inflation, as a measure of looking forward, is directing itself toward the 2 percent target. So the fact that one index of one month is going one way or another is not important.Frenkel says it is important that monetary policy uses the compass of the medium term, which should tell the Fed that it is justified in normalizing rates.
-
The U.K. Financial Conduct Authority has launched a consultation on listing rules.The watchdog proposes a new listing category for sovereign state companies listing in the country. It proposes exempting controlling sovereign shareholders from some rules on related party transactions and controlling shareholders. -
U.K. Prime Minister Theresa May tells BBC Radio she was "devastated" when she saw the results to the general election in June.The prime minister added she "shed a little tear" over the election exit poll results, according to Reuters.Today marks the one year anniversary of May becoming the country's prime minister.
In pictures: Theresa May’s first year in office as UK prime minister
From strengthening ties with allies to tackling Brexit, CNBC looks back at what has happened during Theresa May's first year as UK prime minister. -
U.S. President Donald Trump has just touched down in Paris. Before leaving for France, Trump said he did not fault his son for meeting with a Russian lawyer during the presidential campaign.Speaking with Reuters, the president said he was not aware of the meeting between Donald Trump Junior and the attorney until a couple of days ago.Andrey Kostin, chairman of VTB Bank, says he has no opinion on the U.S. story.I don’t know. I’m not even a lawyer, I’m a banker, but I think you in American should first of all decide who is your president? What is his family doing? What is Congress’s role? What are the secret services doing? It has nothing to do with us. We are living a quiet life here in Russia, we don’t have this trouble you have. Sorry about this.Kostin says he doesn't think Russia played much of a role in the U.S. election. He says he has never met Trump or any of his family.
-
Andrey Kostin, chairman of VTB Bank, says he has no fear of new sanctions being imposed on Russia or Russian businesses.If America does want to have good relationships with Russia one day, you shouldn’t adopt these new sanctions. If you don’t want to, we can’t force you to do it. I think it would be a huge mistake, there will be further deterioration of the relationship between the two big powers, but that’s nothing we can do. We’re not influencers on this process unfortunately. -
US President Donald Trump has landed in Paris. He is in town to celebrate Bastille Day and will meet with President Emmanuel Macron to discuss important issues and build relations between France and the U.S.
Segolene Royal, president of COP21, says all the countries that ratified the Paris Accord still want to work with the U.S. on climate change.Everybody can observe this problem, because when Donald Trump decided to go out of the Paris agreement, it was a very huge disappointment and I remember with Barack Obama we made fantastic work because without Barack Obama we wouldn’t have succeeded on the Paris agreement.It was the first head of state and the most important one just after the terrorist attack to say they were still coming to Paris. This was a very, very important event and I was very grateful to Barack Obama and to the American people.She says Trump's decision is bad news for the 153 countries which are ratifying the Paris Agreement.
-
The U.K. government says the EU may have property, funds, assets and operation in the U.K. after Brexit and will need a transitional period to wind them up, Reuters reports.The government says the scope and duration of such a period may be different for different types of asset or agency, according to a government position paper. It adds that the U.K. stands ready to give specific consideration to the rights of the European Investment Bank to facilitate its operations. -
The European Securities and Markets Authority says regulators should ensure that the people effectively directing investment firms' business are in the member state of establishment.The watchdog warns that if regulators believe investment firms are not operating from the home member state, they can withdraw authorisation.This warning may be directed at U.K. banks and institutions, as several are considering opening offices in Europe to maintain their passporting rights to do business in the continent. -
Britiain's Prime Minister Theresa May tells BBC Radio she is a feminist. She says the government will deliver on Brexit and leave the European Union.May says she wants a good Brexit deal and hopes parties in parliament will see this as an opportunity.May was also asked how long she will stay in the role. She says she is driven by a sense of duty and there is still a lot to do.
-
South Africa's finance minister says there are tough decisions to make going into the medium term budget statement in October.Malusi Gigaba says investors raised slow growth, state firms and policy uncertainty as major concerns during a meeting.Gigaba says he will speak more about his economic outlook in more detail in the October budget.He says he will work with trade and industry department for targeted debt relief for low income households.
-
Crude oil prices remain under pressure, slipping more than 30 cents a barrel today. The latest IEA report warned oil producers are increasing global supply and OPEC compliance with supply cuts appears to be slipping.However, oil demand growth did accelerate in the second quarter. If this demand is sustained, there will be a deficit for the rest of the year, helping to rebalance the market. -
-
-
King Felipe of Spain says the Brexit vote has generated uncertainty for Spanish companies and we must make sure that Brexit negotiations reduce this to a minimum, Reuters reports.The King says the future framework for U.K.-Eu must be a close economic relationship minimising obstacles and barriers.This is the second day of a three-day visit to the U.K. by the Spanish royalty.
Spanish King Felipe VI sits beside Britain's Queen Elizabeth II during a State Banquet -
Yandex and Uber are merging their ride-sharing businesses in Russia and five eastern European markets.Yandex will 59.3 percent of the new company, 4.1 percent will go to employees and the rest to Uber.Uber agrees to invest $225 million while Yandex will invest $100 million in the new join venture. Uber will also contribute its UberEATS business in the region to the new company.Yandex says the new company will be valued at $3.725 billion on a post-money basis. -
-
Shares in AstraZeneca are trading near the bottom of the Stoxx 600,on a report the U.K. pharma company could lose its CEO to generic rival Teva. According to the Calcalist financial website, Pascal Soriot has met with the Israeli company's search committee, and agreed to join as its new chief executive.AstraZeneca's U.S. listed shares are down more than 1 percent in premarket trade.
On the flip side, Teva shares are up nearly 3 percent in premarket trade on news that Pascal Soriot will join the company.
-
The latest IEA report had bad news for the oil market as it highlighted rising output and compliance with the OPEC production cut slipping.However, it had good news for the U.S. LNG industry, forecasting the U.S. to become the biggest exporter of natural gas.The report predicts the U.S. will challenge Qatar and Australia as the leading exporter of natural gas. The industrial sector is set to replace power companies as the biggest natural gas customer. Meanwhile, three new LNG terminals being built on Texas coastline.
US on course to become world’s largest exporter of natural gas: IEA
Global demand for natural gas is rising and the United States is increasing its export capacity. -
Asked about reports that Siemens turbines were delivered to Crimea, the Kremlin says the equipment being installed there is of Russian origin .The German industrial giant is in dispute with Russia over the turbines. Siemens said on Monday that at least two gas turbines it supplied to a Russian company have been illegally diverted to Crimea. -
-
Target has reported updated guidance on its Q2 results. The company says it expects positive Q2 comparable sales and EPS above the high end of its prior guidance. It now sees second quarter earnings per share in the high end of the 95 cents to $1.15 range.Target shares are called 5 percent higher in premarket trade.
-
Tiffany announced Alessandro Bogliolo will become the company's new CEO. That's according to a Reuters report.Bogliolo is expected to assume the role by October 2, and will join the board of directors once he joins the company. Bogliolo has been CEO of Diesel in Italy since 2013.
