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.
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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.
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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.
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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. -
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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.
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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. -
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Russia has no political involvement with the U.S. according to the CEO of VTB Bank.
Trump trouble has nothing to do with Russia, says VTB CEO: ‘We are living a quiet life in Russia'
CNBCRussia has nothing to do with the ongoing political scandals in the United States, the chief of one of the biggest Russian lenders told CNBC Thursday. -
France and Germany are to work together to beef up cyber security and defense.According to a document from a ministerial meeting that Reuters has seen, the two countries are to:- Modernize Europe's air combat system under their leadership
- Co-operate on ground and sea patrols
- Develop new air-to surface missiles and new Tiger attack helicopters
- Launch contract for a euro-drone project before 2019
- Cooperate on cybersecurity
Spectators watch a Eurocopter Tiger EC665 military attack helicopter lift off at the ILA 2014 Berlin Air Show on May 21, 2014. -
U.S. jobless claims for the week July 8 fell to 247,000. The consensus was 245,000.The week prior was revised to 250,000.All in all it adds up to a near meeting of forecasts and the dollar has not moved much.
U.S. 2 and 10 year yields edged lower following the print. -
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Is Draghi really about to take away the punch bowl for Europe?
ECB will reportedly announce the winding down of QE in September
CNBCThe European Central Bank is likely to signal in September that its 2.3 trillion euros bond-buying program would be gradually wound down next year, the Wall Street Journal reported on Thursday. -
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The UK’s Office for National Statistics plans to release monthly figures on gross domestic product.At present each quarter is followed by 3 releases of data pertaining to the quarter.In a blog posting the ONS said monthly GDP measurements would “complement” its existing release schedule.The plan is for the monthly release to provide an "earlier insight into the latest economic picture". -
Janet Yellen has started her second day of testimony on monetary policy to Congress.On banks she has said she would not be in favor of reducing capital standards for banks deemed systemically important.She followed that by saying adopting some of the Treasury's recommendations could increase the chances of a financial crisis.She also states that she is watching inflation carefully and regards the risk as two sided.She said it remains prudent to remain on gradual path of rate increases. -
The Fed president has said she is on the lookout for areas of emerging risk but doesn't elaborate further.
Yellen notes that while the Fed is on the path to shrinking its $4.5 trillion balance sheet, it is not looking to return to the pre-crisis size.U.S. stocks have pared earlier gains.
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