World Markets Live - July 14 - CNBC Live Events
×

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.

  • Goldman Sachs is relaxing its dress code for its technical teams, as it tries to attract and retain top talent. That's according to an internal memo seen by Reuters. 
     
    It's the latest in a series of moves by big banks to attract workers who are being recruited by Silicon Valley firms.
     
    If you are someone who is more of a Silicon Valley than a Goldman type, check out this story on our website. Facebook's top recruiter shares insider tips on how to get hired there. Her advice: study their earnings releases and call transcripts, so you know where the company's going and can talk about the big-picture vision during interviews.
     
  • Neil Brown, investment manager at Liontrust, shares his reasons for recommending Spanish clothing company Inditex.
     
    It’s a great business that deserves that valuation.
     
    What we really like it for is… sustainability. They didn’t take part in this race to the bottom. They’re not making huge orders, taking big fashion risks and guessing what people are going to want in six months down the line.
     
     Shares are up 5 percent so far this year.
     
     
  • Here are the top headlines for the hour:
     
    • Trump and circumstance in Paris. Bastille Day celebrations get underway in France, as U.S. president Donald Trump and his host Emmanuel Macron play down their differences.
    • 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, as the Swedish construction group warns it needs to write down the value of US and UK projects by nearly 800 million Swedish crowns.
       
  • Some data from Europe is out.
     
    The Czech Republic's current account deficit for May is 2.88 billion Czech koruna versus 1.9 billion forecast.
     
    Italy's final June EU-harmonised CPI is confirmed at minus 0.2 percent month on month and 1.2 percent year on year, according to ISTAT.
  • Japan's government expects GDP to grow 1.5 percent in the full year 2017 to 2018, unchanged from its previous forecast in January. It forecasts CPI to rise 1.1 percent this year.
     
    The government upgrades its forecasts for consumer spending, capex and housing investment. It expects GDP to grow 1.4 percent in full year 2018/2019.
  • EasyJet has announced its application to Austria for an airline operating licence and air operator certificate are well advanced. It hopes to receive these accreditations in the near future.
     
    EasyJet says this will allow it to set up a new airline, EasyJet Europe, headquarted in Vienna. It will allow the airline to continue to operate flights across Europe and domestically after the U.K. has left the EU.
     
    Shares are down 0.2 percent today.
     
     
  • European yields have come off some of yesterday's gains. They rose alongside the Euro on the back of a Wall Street Journal report that ECB President Mario Draghi will address the Fed's Jackson Hole conference in August.
     
    Draghi's speech at the event three years ago was widely seen as the unofficial launch of the central bank's bond buying programme. 
     
     
  • The Bastille Day parade is taking place today. President Trump has arrived at the Arc de Triomphe for the celebrations in Paris. 
     
    President Emmanual Macron taking part in the military demonstration
  • 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.
     
    CNBC’s Gemma Acton explains why Murdoch seems willing to allow the deal to be investigated, which would be a lengthy process.
     
    It’s quite possible he just thinks it is quite pointless, because it’s such a political decision, it’s always been a political decision. You’ve seen Karen Bradley lobby it back and forth to OFCOM and the CMA, trying to get away from having to make the decision herself, which ultimately she will have to do.
  • Russia's foreign ministry spokeswoman says one way for Moscow to retaliate against the U.S. over seizure of Russian diplomatic property would be to reduce U.S. embassy staff, according to Reuters.
     
    She expects detailed proposals from Washington over the seizure. She says talks between Russia's deputy foreign minister and the U.S. under-secretary of State will be held in Washington on July 17, and Moscow will decide on retaliation after that meeting.
     
    In December 2016, President Obama expelled 35 Russian diplomats and seized two Russian diplomatic compounds because Russian interference in the presidential election. Since then, Russia has threatened to expel 30 U.S. diplomats and seize U.S. diplomatic property in retaliation, the Telegraph reported.
  • North Korea says it will take "corresponding measures" if the U.N. Security Council adopts another sanctions resolution. That's according to Reuters citing KCNA.
  • 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. NBC'S Kasie Hunt filed this report on the political reaction to the Trump administration's latest efforts to repeal and replace the Affordable Care Act.

  • The Stoxx 600 is broadly flat this morning, up just 9 basis percentage points.
     
    Individual European bourses are mixed. Spain and Switzerland's market are recording gains, while the U.K. Portuguese markets are falling.
     
  • Three big U.S. 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.
  • Kevin Quigg, chief strategist at ACSI Funds, says the bar is pretty low for trading income at the banks.
     
    The banks essentially make their money in three ways. Trading is one very important lever, as is traditional banking services and finally wealth management and I think you hit it spot on that trading revenues are down, but that being said I think the bank industry has the tailwinds behind it.
     
     
     
  • Trump and circumstance in Paris. Bastille Day celebrations are underway in France, as U.S. president Donald Trump and his host Emmanuel Macron play down their differences. Trump is attending the French military parade.
     
    Click or tap on the arrows to navigate our slideshow below showing highlights of the parade.
     
  • The euro zone May trade surplus was 21.4 billion euros according to Eurostat, down from 23.4 billion a year earlier.
     
    Unadjusted exports rose 12.9 percent year on year, imports rose 16.4 percent year on year. 
  • The U.K.'s FCA is fining a compliance officer £75,000. The watchdog says the fine is for failing to exercise due skill, care and diligence in David Watters' role as compliance oversight officer at FGS McClure Watters and Lanyon Astor Buller, two Belfast-based financial firms.
  • U.K. workers union Unite says it will hold a consultative ballot with members on Royal Mail's pension proposals, Reuters reports.
     
    Unite said it is making no recommendation to its members on the offered package. Unite said "We have had many discussions with the company over the last few months and these have been difficult." 

    Unite added that its negotiation team considers the offer the "best achievable in the circumstances."
     
    Shares in Royal Mail are down nearly 2 percent today.
     
     
  • The U.N. Human Rights office calls on Bahrain to "unconditionally and immediately" release Nabeel Rajab who was sentenced to two weeks in jail this week.
     
    Rajab is  a Bahraini human rights activist and opposition leader.
  • We're a few hours away from the opening of U.S. markets, but future values have turned flat.
     
    The Dow now looks likely to come off its fresh record high set during Thursday's session.
     
     
    Before the U.S open, we'll have earnings reports from three major U.S. banks, plus some important pieces of economic data.
     
     
  • A German transport ministry spokesman says the car watchdog will check Daimler vehicles.
     
    This after a report yesterday claimed Daimler sold more than a million cars which broke emissions standards.
     
    Daimler shares fell sharply at the start of yesterday's session following the report, but mostly recovered. They are down almost 1 percent today.
     
     
  • Worldwide M&A activity totals $1.72 trillion and is up 3 percent year to date compared to the same period last year.
     
    That's according to the latest Investment Banking Scorecard from Thomson Reuters.
     
    The scorecard says Chinese M&A is down 8 percent compared to last year, with $240 billion in deals announced so far. Proceeds from Asian IPOs (excluding Japan) total $36.5 billion, up 66 percent compared to last year.
  • Shell declare "force majeure" (meaning they cannot deliver on a contract) on exports of Nigeria's Bonny Light crude oil. That's according to Reuters citing a a company spokesperson.
  • Irish Q1 GDP declined 2.6 percent quarter over quarter, but is up 6.1 percent year on year. Irish Q4 GDp is revised to 5.8 percent quarter over quarter from 2.5 percent previously, and 9.9 percent year on year from 7.2 percent previously.
  • Today marks the official beginning of U.S. earnings season.
     
    Major banks Citigroup, JPMorgan Chase, and Wells Fargo are all scheduled to report before the bell. First Republic Bank, PNC Financial Services Group are also due to report Friday.
     
    Futures are reflecting that flat earnings are expected.

     
    Meanwhile, in Europe it is a similar story of narrow trading.
     
     
    Basic Resources stocks were among the top gainers in early deals. This after news that Rio Tinto's plan for a copper mine in Arizona would tunnel 7,000 feet underground and thus test President Donald Trump's push to slash regulation.

    Shares of travel and leisure firms were also higher on Friday morning after some rating upgrades.

    However, construction and material stocks fell on earnings with the Swedish construction group Skanska among those at the bottom of the European benchmark. It moved lower by 4 percent after announcing it is writing down the value of projects in the U.S. and the U.K., hitting second-quarter profits.
  • Regional bank First Horizon National Corp has reported a second quarter earnings per share of 38 cents, equating to a net profit of $92.4 million.
     
    Net interest income increased to $200 million from $189 million in the first quarter.
     
    First Horizon CEO Bryan Jordan with Jim Cramer.
     
  • PNC Financial Services Group has reported its Q2 numbers.
     
    The company has posted earnings per share of $2.10 from a second quarter revenue of $4.1 billion. The quarterly profit is a rise of 12.1 percent.
     
    The quarterly net interest income increased by 5 percent to $2.3 billion.
  • JPMorgan has reported a second quarter revenue on a managed basis of $26.41 billion with earnings per share of $1.82.
     
    That EPS figure seen as at the high end of expectations with a consensus forecast of $1.58.
     
    Company CEO Jamie Dimon has said in a release that "The US consumer remains healthy".
     
    Shares in the bank initially rose in pre-market trade but have since turned south.
     
    This last print was take at 7:41 a.m. ET.
     
     
    Markets trading for Q2 was down by 14 percent but the bank says its overall result was helped by the rising rate environment.
     
    For comparison, in the second quarter of last year, the bank reported earnings of $1.55 per share on revenue of $25.2 billion.
  •   
    For more detail on that JP Morgan release, you can go to this story.
     

    JPMorgan smashes Wall Street estimates

    CNBCJPMorgan Chase was scheduled to report quarterly earnings Friday.
  • A short summary of America's biggest bank, JPMorgan, and its second quarter performance:
     
    • Pre-market shares are now roughly flat 
    • The net income was $7.03 billion, up 13.4 percent
    • Bond trading income fell but interest from higher interest rates has compensated
    • JPMorgan is up 8 percent year to date on its share performance.
     
  • RBC Capital Markets Banking Analyst Gerard Cassidy is on CNBC explaining why premarket trading is muted for JPMorgan.
     
    Cassidy says the bank has indicated it expects lower net interest revenue in future.  
     
    He cites evidence that loan growth has slowed and that fact that Net Interest Margin (NIM) is lower than expected as the two probable reasons for JPMorgan's slight pessimism.
     
    Cassidy said increased funding costs for the bank are the probable reasons why NIM's are under performing.
     
    Taking the temperature at JPMorgan.
     
  • Citigroup has reported a 3 percent second-quarter profit fall, because of a fall off in Wall Street trading activity.
     
    The bank however still beat forecasts.
     
    The quarterly profit number was $3.872 billion with per-share earnings of $1.28. The forecast for EPS were $1.21.
     
    Revenue also beat forecasts, coming in at $17.9 billion.
  • And a beat for Wells Fargo on earnings per share while revenue just fell shy of forecast in the second quarter.
  • After that initial flush of banking earnings we are largely unmoved on the U.S. futures outlook.
     
    In around ten minutes we get U.S. June retail sales and inflation data. We will see how that moves markets.
     
     
    Just before the release, we see the dollar-yen and bond picture as this:
     
     
     
  • The June CPI figure has come in at 0.0 percent. The core figure which excludes food and energy is recorded at +0.1 percent.
     
    The June CPI figure for the U.S. was seen at +0.1% and core at +0.2%.
     
    For June's retail sales data, the number came in at -0.2 percent. The figure for May was -0.3 percent.
     
    Ex-auto's the number was -0.2 percent.
     
    Retail sales were seen as rising +0.1 percent for June. Ex-autos's the figure was forecast at +0.2 percent.
     
    Both could be considered weaker than expected.
     
    The dollar index has slipped lower. Against the yen, the drop is pronounced:
     
     
    Yields on U.S. debt have also hit session lows.
     
     
  • Theses are the stocks making moves as the trading week moves towards its end.
     

    Early movers: JPM, WFC, C, WMT, BA, FCAU, T, GPS, SNAP & more

    CNBCSome of the names on the move ahead of the open.
  • Oil contracts have dropped in to sell mode following that weaker-than-expected inflation and retail sales print for June.
     
    Only just mind you.
     
     
  • The data keeps coming.
     
    U.S. June industrial production has come in at +0.4 percent versus a forecast +0.3 percent.
     
    The May figure has been revised upwards to +0.1 percent from 0.0 percent.
  • The Stoxx 600 has dipped into negative territory, dragged lower by the banking constituents.

     
     
  •  
    It's almost embarrassing being an American citizen.
    - Jamie Dimon
     

    JPMorgan's Jamie Dimon blows up at Washington on earnings call

    CNBCJPMorgan Chase CEO Jamie Dimon expressed frustration at the U.S. federal government during the company's earnings conference call Friday.
     
  •  
    A touch more positivity on the S&P 500 and Nasdaq as the Dow opens flat.
  • These are the best and worst of the S&P 500 stocks at last print. Bank of America and Morgan Stanley are struggling. 
     
     
    On the Dow listing, JP Morgan and Goldman are also in sell mode.
     
     
  • Wal-Mart has been raise to buy by Goldman Sachs and JPMorgan have turned bullish on Boeing.
     
    That encouraging investors toward those two stocks.
     
     
  • The weak US data has pushed sterling to its highest level versus the dollar since September 2016.
     
     
    That weaker data is helping Wall Street push north in early trading, as investors bet on reduced chance of further rate rises this year:
     
     
  • European markets looking a little lower on average. The FTSE 100 is struggling with sterling doing a little better against the dollar.
     
     

    Looking at individial stocks, EasyJet has announced that it is setting up easyJet Europe in Austria to protect its flying rights once the U.K. leaves the European Union. It shares were slightly lower.

    In other stocks news, Sky dropped on Friday after news that Rupert Murdoch is unlikely to offer any new concessions to ensure editorial freedom of the media company as it tries to merge it with Fox.

    Meanwhile, U.K. retailer Dixons Carphone said it sold its Spanish business for 55 million euros ($62.77 million). But its shares fell 1.4 percent.

    Hays the U.K.'s biggest recruiter by market capitalization, announced it sees profits beating market expectations in 2017, despite suffering a 5 percent drop in fee growth. Its shares were up by 2.3 percent in morning deals before shifting up to the flatline.

  • More details emerge.

    There was an ex-Soviet counterintelligence officer in the Donald Trump Jr meeting: NBC

    CNBCA Russian-born American lobbyist was also at the June 2016 meeting with Donald Trump Jr., NBC News says.
  • U.S. stocks have traded mildly higher on Friday as Wall Street parsed through key corporate earnings and economic data.

    The Dow Jones industrial average rose just 5 points, with Boeing contributing the most gains and JPMorgan Chase and Goldman Sachs the most losses. The S&P 500 is up 0.17 percent, with real estate leading advancers and financials dropping around 1 percent. The Nasdaq composite outperforming, advancing 0.28 percent.

    The major indexes are on track for strong weekly gains. 
     
     
  •  
     
    And that is where we will leave the blog for the week.
     
    On Monday we will review Chinese GDP data.
     
    Brexit is back as Michel Barnier in the European corner and David Davis for the U.K. resume talks in Brussels.
     
    We will also  follow the EU Foreign Affairs Council meeting in Brussels.
     
    Top TV guests from Europe include:
     
    • Peter Spencer, Chief Economic Advisor, Ernst & Young ITEM Club
     
    • Dr Anwar bin Mohammed Gargash, UAE Foreign Minister
     
    • Sigve Brekke, CEO, Telenor
       
Powered by ScribbleLive Content Marketing Software Platform