World Markets Live - July 14 - CNBC Live Events
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CNBC Live Events

World Markets Live - July 14

We’ll be updating you throughout the day with essential breaking news, data alerts, earnings reports and all the major market movements.

  • Good morning and welcome to World Markets Live. TGIF! Let's take a look at the opening calls for European markets.
     
     
  • These are the top headlines this morning.
     
    • Another day of strong gains for US stock markets, as financials and retailers help propel the Dow to its 24th record close of the year.
    • Will he or won't he? President Donald Trump suggests the US could rejoin the Paris accord on climate change, as he seeks to downplay differences with his French counterpart Emmanuel Macron, on his Bastille Day visit.
    • US steel stocks also getting a boost from the President's comments, as Donald Trump suggests he could impose quotas and tariffs on imports, to fight dumping by foreign producers.
    • Russia's central bank governor Elvira Nabiullina tells CNBC she welcomes the prospect of normalisation by the Fed, adding that inflation in her economy has some way to go
  • Fed Chair Janet Yellen provided cautious testimony to the U.S. Congress on Thursday, warning that achieving 3 percent growth would be challenging.
     
    This combined with decent results from Target, which improved the outlook for U.S. retailers. The Dow closed the session at a fresh record high.
     
     
  • Asia markets are slightly more mixed overnight. The Nikkei rose, looking set for a weekly rise of more than 1 percent. Australian stocks and Hong Kong's Hang Seng index also added some gains. China's shares bucked the trend, with Chinese steelmakers falling around 1 percent after Donald Trump warned he could impose quotas and tariffs on imports.
     
     
  • It's a big day for data stateside. The latest CPI figures are coming out. We also get the newest reading on retail sales.

    Both are forecast to pop into positive territory for June after negative figures in May. Forecasters also expect a boost to industrial production numbers.
     
     
  • Three big US banks kick off earnings season stateside later today. Citigroup, JPMorgan and Wells Fargo report before the bell, with three other big lenders publishing results next week.

    Wall Street is expecting the usual seasonal drop-off in trading income for the second quarter, but this year the fall could be even bigger. The increase in volatility caused by the Brexit vote boosted trading income this time last year. Earnings expectations are lower for banks that have a greater reliance on revenue generated by their traders.
  • Swedish bank SEB reports Q2 net profit of 4.53 billion Swedish krona, beating analysts' expectations. 
     
    Net interest income was 4.91 billion krona. Loan losses came to 214 million krona. The bank increased its tier 1 capital ratio to 22.1 percent.
     
    The bank said lower market volatility reduced customers high demand for risk management services, adding they still have opportunities in the long-term savings area.
     
     
  • Uber is combining its Russian operations with Yandex.taxi, the most popular ride-hailing service in the country and the San Francisco-based firm's biggest rival in the region.
     
    The two announced a new joint venture to be majority owned by Yandex, the app's parent company, valued at approximately $3.7 billion. The 'Google of Russia', as Yandex is commonly referred to, will own a 59.3 percent stake, while Uber will control 36.6 percent of the firm.
     
     
  • President Trump is visiting France for Bastille Day. He says he can work with his French counterpart Emmanuel Macron, despite clear differences on climate change.
     
    Speaking at the Elysee Palace, Trump hinted he might bring the U.S. back into the Paris climate accord.
     
     
  • President Trump has suggested he could impose both tariffs and quotas on U.S. steel imports. Addressing reporters aboard Air Force One, he said: "Steel is a big problem. We're like a dumping ground and I'm stopping it."
     
    Industrial metal stocks rallied on the comments, with AK Steel closing more than seven percent higher. 
     
     
  • Russia's central bank governor Elvira Nabiullina tells CNBC she welcomes the prospect of normalisation by the Fed, adding that inflation in her economy has some way to go.
     
    We think that when inflation expectations in Russia will decline towards our inflation target then policy rates can be close to this neutral interest rate.
     
     
     
  • Consumer advocacy groups are asking the U.S. attorney general to block AT&T from buying Time Warner.
     
    They say the $85 billion deal would lead to higher prices, and slower innovation in online video. Investors also worry the deal could face trouble with the administration, given President Trump's frequent attacks on Time Warner's CNN.
     
     
  • 21st Century Fox owner Rupert Murdoch is unlikely to offer any new concessions to protect the editorial independence of Sky, raising the odds of an investigation into the $15 billion merger. That's according to Reuters. 

    Britain's media secretary Karen Bradley has said the takeover would give Murdoch too much media influence. This as Fox and Sky face a deadline to make representations on the proposed merger.
     
    Guy Peddy, head of European telecom research at Macquarie Group, shares his view on the deal.
     
    The world has changed in 6 years. The rise of social media has changed how news is distributed. Things have also changed in the structure of the Murdoch group since then. Also, you’ve got to remember that actually Sky News is a difficult business to run separately; it’s probably not actually economically sustainable to run on its own. It does need the wider Sky parentage in order to fund it and drive it forward.
     
     
  • Russian central banker praises 'normal' interest rates — and gives her outlook for oil prices

    Elvira Nabiullina applauded the Federal Reserve’s moves to normalize monetary policy and called on other central banks to follow suit.
  • Rival daily fantasy sports companies Draftkings and Fanduel are scrapping plans to merge, after facing challenges from U.S. antitrust authorities.
     
    In June, the U.S. Federal Trade Commission said a merger would put 1 company in control of more than 90 percent of the U.S. sports fantasy market.
     
     
  • Some of America's most influential media and tech executives are meeting at the Allen and Co conference in Sun Valley, Idaho, with rumours of potential deals swirling. CEOs attending this year have told CNBC that they expect a new wave of media consolidation, as companies face pressure from streaming services and cord cutting. CNBC's Julia Boorstin sends this report from Sun Valley.

  • Singapore’s Global Logistic Properties has announced proposals to be privatised by allowing Nesta Investment to acquire all issued shares of the company.
     
    The offer is S$3.38 in cash per share. This is an 81 percent premium over the 12-month volume weighted average price. The offer values Global Logistic Properties at S$16 billion.
  • Israeli police have reported a shooting attack at Jerusalem's Old City close to Temple Mount. At least three people are wounded, according to reports. Israeli police declare Friday prayers will not be held at the holy site Nobel Sanctuary following the shooting.
  • The U.K. government appears to have made a first-time acknowledgement of the need to pay a financial settlement to the EU when it leaves the bloc.
     
    In a written statement to parliament, Conservative politician Joyce Anelay said Britain had "obligations to the EU" that must be resolved. The somewhat concessionary tone comes after foreign secretary Boris Johnson told the EU to "go whistle" earlier in the week, over what he called extortionate payments.  
     
    Meanwhile Britain's Labour leader Jeremy Corbyn has met with the EU's chief Brexit negotiator Michel Barnier in Brussels.
     
    Corbyn, left, presents Barnier, right, with an Arsenal football shirt
     
    Presenting Barnier with an Arsenal shirt,  Corbyn said the meeting was an opportunity for the opposition party to set out its Brexit vision. He cautioned the meeting was not a negotiation, but rather a discussion of the process and methods by which Brexit could maintain and protect jobs in Britain.   
  • The UK's Financial Conduct Authority has proposed a new premium listing for government backed companies, in a move that could potentially help the London Stock Exchange win the listing of Saudi Aramco. The IPO is set to be the largest initial public offering ever. 

    The new proposal will make firms controlled by states exempt from certain requirements, including entering into a legally binding agreement to "ensure it does not abuse its shareholding to the detriment of other shareholders."
  • European car sales for January to June are up 4.6 percent to 8.46 million vehicles, according to the ACEA. In June, sales rose 2.1 percent to 1.54 million vehicles.
     
    In the U.K. June new car sales fell 4.8 percent on the year. January to June sales were down 1.3 percent.
  • These are top news headlines for the hour:
     
    • Another day of strong gains for US stock markets, as financials and retailers help propel the Dow to its 24th record close of the year. 
    • Will he or won't he? President Donald Trump suggests the US could rejoin the Paris accord on climate change, as he seeks to downplay differences with his French counterpart Emmanuel Macron, on his Bastille Day visit.
    • US steel stocks also getting a boost from the President's comments, as Donald Trump suggests he could impose quotas and tariffs on imports, to fight dumping by foreign producers.
    • Russia's central bank governor Elvira Nabiullina tells CNBC she welcomes the prospect of normalisation by the Fed, adding that inflation in her economy has some way to go.
  • Dixons Carphone has sold The Phone House Speain to Global Dominion Access for 55 million euros, minus working capital adjustments.
  • Finland's June CPI grew 0.7 percent year on year, according to Statistics Finland. May's current account is up 1 billion euros. Finnish May GDP grew 2.5 percent year on year.
     
    Meanwhile, Norway's June trade deficit was 760 million Norwegian krona. Imports grew 24.6 percent to 67 billion krona, while exports grew just 9.8 percent to 66.25 billion krona.
  • U.K. company Hays reports Q4 earnings. Group like for like net fee was up 7 percent. Its full year operating profit is expected to be marginally ahead of the current market consensus. The company's CEO says conditions remains "good" in the majority of its international markets.
     
    It expects a year-end net cash position of around £110 million.
  • Earnings season is kicking off in the US, as a number of S&P 500 firms get set to report results. Investors are anticipating a 10 percent gain in second quarter numbers. Bob Pisani has a closer look at what to watch.

  • Neil Brown, investment manager at Liontrust, says it is a very challenging time for retailers as they face increased competition from online companies such as Amazon.
     
    The sheer scale and the speed of what Amazon has done, and the scale they have now achieved and the move into Prime, Fresh, Whole Foods, it’s a hell of a thing to take on now.
     
    Brown says the acquisition of Whole Foods is Amazon’s attempt to corner distribution.
     
    It’s not necessarily they want people coming into these stores. They need that last bit where you bag things and take them in. I think what they might be doing, and its long-term and its structural, but they’re getting people used to online shopping. They’re getting people much more engaged with brands.
     
     
     
  • European markets are called higher, according to the futures, looking set to finish the week on a strong note. The Stoxx 600 rose 0.32 percent in Thursday's session.
     
     
  • The U.K. competition regulator the CMA has decided that the anticipated acquisition of Bunn Fertiliser assets by Origin U.K. Operations Limited may lessen competition.
  • President Trump says he can work with his French counterpart Emmanuel Macron, despite clear differences on climate change. Speaking at the Elysee Palace, Trump hinted he might bring the U.S. back into the Paris climate accord.
     
     
    While the two presidents were talking business, the first ladies took a tour of the French capital. Melania Trump and Brigitte Macron spent their afternoon on a boat tour of the river Seine, before visiting the Notre Dame cathedral.

    In the evening, the couples dined at a restaurant high in the Eiffel Tower.
     
     
     
     
  • President Trump has suggested he could impose both tariffs and quotas on U.S. steel imports. Addressing reporters aboard Air Force One, he said: "Steel is a big problem. We're like a dumping ground and I'm stopping it." Industrial metal stocks rallied on the comments, with AK Steel closing more than seven percent higher. 
     
    U.S. Commerce Secretary Wilbur Ross, pictured, could announce the measures the Trump administration is planning to take to counteract steel dumping as soon as next week, according to media reports.
     
     
    Washington's non-partisan scorekeepers are weighing in on President Trump's budget proposal, and the Congressional Budget Office says it could cut the federal deficit over time, but won't balance the budget. The CBO also says economic growth won't be as fast as the administration promises.
     
    President Trump has also said fixing healthcare is the only thing harder than achieving peace in the Middle East. He made the remarks as the GOP released its revised health care bill.
  • India's June WPI inflation is up 0.9 percent year on year, under expectations.
     
    India's fuel price index is up 5.28 percent year on year. Manufacturing inflation is up 2.27 percent. The wholesale food price index dropped 1.25 percent in June.
  • Hong Kong leader Carrie Lam says "One Country, Two Systems" principle is as robust as ever. Lam says the Chinese president sent a clear message of confidence to Hong Kong during his visit.
     
    Lam vowed to reflect the concerns of Hong Kong's citizens to China's top leaders, according to Reuters.
  • European stocks open higher, following on from strong gains in the U.S and some Asian markets.
     
     
    Here is how the sectors are performing. Construction and autos are lagging, while basic resources and real estate are pulling ahead.
     
  • Sweden's SEB and U.K.'s Hays are both near the top of the Stoxx 600 at the start of trade after reporting strong quarterly results.
     
  • Iberdrola and its partners could launch the IPO of Brazilian utility firm Neoenergia as early as September, according to a report from Reuters. Neoenergia will become Brazil's largest power utility, after its takeover of a smaller rival closes. Iberdrola will have a 52.4 percent stake in the company once the deal is complete. 
     
    Shares in Iberdrola are down slightly this morning.
     
     
     
     
  • During a press conference in France, President Trump hinted at potential bringing the U.S. back into the Paris climate change accord.

  • Daniel Morris, senior investment strategist at BNP Paribas Asset Management, says ECB President Draghi isn’t being more aggressive on the interest rates and QE because of the inflation rate.
     
    It’s still well below his target. So from his point of view, they need to be doing more QE not less, everything in terms of their policy is correct. They’ve worked so far, they’ll continue to work but he doesn’t have that option, because he has opposition from other members of the committee.
     
     
     
  • Swedish banking group SEB has reported a larger than expected rise in second quarter operating profit. The bank's operating profit topped 5.6 billion Swedish crowns. The bank said customer activity had increased across all segments. This has put the stock at the top of the Stoxx 600.
     
     
     
     
  • The construction sector is struggling in trade today. One stock under pressure is Skanska. Its shares are trading sharply lower after the company issued a second quarter profit warning. The Swedish construction company said massive writedowns in American and British projects would result in operating income dropping to 1.5 billion Swedish crowns.
     
     
    Daniel Morris, senior investment strategist at BNP Paribas Asset Management, says lack of stimulus and infrastructure spending by the U.S. administration may be bad for construction but good for the economy.
     
    Four months ago when it was all this infrastructure spending is coming, all this stimulus is coming, and the comments from the Fed were too much inflation, don’t go crazy on the stimulus.

    The economy didn’t need the stimulus it was already growing at 2.2 percent or so. In effect we got what we wanted: solid growth without the risk of an inflation spike because of too much stimulus. So maybe it’s disappointing from a construction company’s point of view but not necessarily from an economic one.
  • Half an hour into Friday trade, here are the top headlines:
     
    • Investors in Europe shrug off the strong gains made stateside. European stock markets getting off to a mixed start, as they prepare for the US bank earnings parade.
    • Not built for a profit warning. Shares in Skanska trade sharply lower at the open, as the Swedish construction group warns it needs to write down the value of US and UK projects by nearly 800 million Swedish crowns.
    • Will he or won't he? President Donald Trump suggests the US could rejoin the Paris accord on climate change, as he seeks to downplay differences with his French counterpart Emmanuel Macron, on his Bastille Day visit.
  • It's deadline day for Fox's acquisition of Sky.
     
    21st Century Fox owner Rupert Murdoch is unlikely to offer any new concessions to protect the editorial independence of Sky, raising the odds of an investigation into the 15 billion dollar merger. That's according to Reuters.
     
    Britain's media secretary Karen Bradley has said the takeover would give Murdoch too much media influence. This as Fox and Sky face a deadline to make representations on the proposed merger.
     
     
    Meanwhile, recruitment firm Hays sees its full year operating profit ahead of market expectations.
     
    The company recorded a 7 percent rise in fourth quarter comparable net fees. Chief Executive Alistair Cox said that conditions remain good in the vast majority of their international markets.
     
    Shares were up 1.67 percent after the market open on the results, taking it towards the top of the Stoxx 600, but the share has now pared these gains.
     
     
  • The developed market private sector has finally started re-leveraging, which is good for growth, says UBS. Private sector households, corporates and the financial sector have added about a half a percent of GDP in debt, over a rolling basis in the last year. 
     
    Arend Kapteyn, chief economist of UBS, says the private sector is no longer deleveraging.
     
    Yes. Amazing, for the first time since 2009 essentially, and when I say we are no longer deleveraging it’s really about the banks. So the banks have been 90 percent of the post-crisis deleveraging. They now in Q1 seem to be taking on wholesale funding again which is new.
     
     
  • President Trump says he can work with his French counterpart Emmanuel Macron, despite clear differences on climate change. Speaking at the Elysee Palace, Trump hinted he might bring the US back into the Paris climate accord.
     
    CNBC's Claire Fournier says Elysee Palace advisors said not to get too excited about Trump’s comments.
     
    That’s because Donald Trump remained pretty vague, probably on purpose, about the Paris Agreement, while Emmanuel Macron really held his line on the climate deal.
     
    Despite differences on climate change, Macron said the issue should not get in the way of discussing other subjects and that he and Trump shared views and goals on other issues.
     
     
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