World Markets Live - July 17 - CNBC Live Events
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World Markets Live - July 17

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

  • Our other top headlines this Monday:
     
    • In America, inflation data and retail sales come in soft, which has investors thinking the Fed may slow the pace of rate hikes.
     
    • A healthcare overhaul vote in Washington is delayed again. Senator John McCain is out sick, and Republicans will need every last vote to take down Obamacare.
     
    • Brexit Secretary David Davis is in Brussels for new Brexit talks, as the clock ticks and the stakes get higher.
  • In the wake of that Chinese GDP beat, Asian markets have reacted in  a mixed fashion:
     
     
    Please note that Japanese markets are closed today.
     
    From our Beijing bureau, Sophia Yan says analyst expect 6.6 percent growth for 2017 which would represent the slowest pace of growth in around 25 years.
  • Joining us from Hong Kong is Andrew Collier, Managing Director of Orient Capital Research who says China is not about to embark on any deleveraging path.
     
    He says credit is continuing to drive China's headline growth:
     
    New net loans were up to 1.54 trillion in June, above analyst expectations, and so it is not surprising that GDP figures are better than expected.
     
    China's vital statistics
     
    Collier says there a is a lot of things China can hide this year but economic weakness may be more apparent in 2018.
     
    Xi Jinping is desperate to avoid "weakness in the system" and what he means by that is that he doesn't want anything blowing up in his face before the party conference in the fall.
     
    Collier says New York and London investors have been nervous about China for at least a year.
  • Chinese GDP has topped expectations with a 6.9 percent growth in the second quarter. The results beat expectations with consumer spending, factory output and investment all strong.
     
    Economists polled by Reuters on average had expected 6.8 percent growth in the April to June period against the same time last year, compared to the first quarter's 6.9 percent.
     
    Beijing has set a growth target of around 6.5 percent for 2017, lowered from 6.7 percent in 2016.
     
    Chinese President XI Jinping arrives at the dinner during the Belt and Road Forum for International Cooperation in Beijing, China, May,14,2017.
     
    China also reported January to June fixed asset investment rising 8.6 percent on year while property investment rose 8.5 percent in the same period.

    Retail sales meanwhile rose 11.0 percent in June from a year ago, better than Reuters' forecast of 10.6 percent.
    by david.reid edited by Spriha Srivastava 7/17/2017 5:18:09 AM
  • There was mixed reaction on Wall Street to the big bank earnings on Friday.
     
    Citi, Wells Fargo and JPMorgan all released second quarter results.
     
    Poor inflation and retail sales data from the United States on Friday may prove a bigger drag for banks going forward and analysts took the opinion that the Federal Reserve is not overly keen to embark on an aggressive rate raising path.
     
    Of course, the longer that the Federal Reserve keep s its taps open, the more equity investors like it.
     
    US markets closed higher on Friday while bank stocks sold off:
     
     
  • Approval ratings for President Trump are at historic lows. A new Washington Post/ABC News poll has Trump at just 36 percent.
     
    This is the lowest six-month approval rating of any president, in data going back 70 years.
     
     
    Meanwhile, a vote on the Republican replacement for Obamacare has been postponed, after a health emergency for a top senator.
     
    John McCain is recovering at home after surgery to remove a blood clot. With 2 Republican senators already saying they won't support the bill, the party needs to have everyone else healthy enough to show up for a vote.
     
  • Brian Klaas, Fellow in Comparative Politics at the London School of Economics is on set to discuss Trump's presidency.
     
    He says Trump's approval ratings is the worst in history but his traditional support remains strong.
     
    Trump is doubling down on a base only strategy. Among Republicans he is doing okay with an 85 percent approval. 
     
    But elections are decided upon in the middle and here he is doing terribly.
     
    On tax reform, Klass claims it will be harder for Trump to get through Congress than healthcare.
     
    Klass says after 200 days on the job Trump has achieved very little and with the Russian scandal overshadowing the presidency he is beginning to look toxic to senators seeking re-election in 2018.
     
    Klass: Trump ignores his own lawyers and goes on Twitter.
     
    Klass says if Trump reaches low 20's in ratings then the Republican Party could well turn on Trump.
  •  
    Oh I just wish they would stop. Just get on with it but it seems to be the summer sport. Chipping away at the Conservative leadership.
    Geoff bemoans the U.K. Conservative Party and its internal fighting.
     
    Speaking to the Telegraph over the weekend, an unnamed minister said that Chancellor Philip Hammond was trying to "frustrate" Brexit and was treating pro-leave colleagues like "pirates who have taken him prisoner."
     
    Hammond has also warned that Brexit uncertainty is putting off businesses from investing in the UK.
     
    Philip Hammond, U.K. chancellor of the exchequer.
     
    Meanwhile, UK Brexit Secretary David Davis says guaranteeing the rights of EU citizens in the UK, and Britons living in Europe, will be his top priority when he heads to Brussels today for round two of talks with EU counterparts. 
  • Dame Carolyn McCall, the CEO of EasyJet, has been named as the new chief executive of ITV.
     
    Dame Carolyn has experience running a major media business, having previously led the Guardian Media Group.
     
    She will take her new role on January 18, 2018.
     
    EasyJet says McCall will keep running the airline until the end of the year and the search for a successor is already underway.
     
     

     

  • The guest host on Squawkbox Europe is Daniel Lacalle, chief economist at Tressis Gestion.
     
    He says the Fed's previous views on inflation were too optimistic and we will now see a more cautious from Yellen's team view on rate hikes.
     
    The market is currently offering a 43% possibility that the Fed will raise rates in December.
     
    Source: CME Group
     
    Lacalle says that number fits in his line with his expectations.
  • Has this image of Winnie the Pooh and his friend Tigger been banned in China because of social media comparisons with the picture on the right?
     
    According to this story, that is indeed the case.
     
     
    The crackdown is said to be the latest ban in the run-up to this Autumn's Communist Party Congress.
  • A reminder of our top headlines:
     
    • Chinese growth reports are better than expected. But American inflation and retail numbers come up short.
     
    • A healthcare overhaul vote in Washington is delayed again. Senator John McCain is out sick, and Republicans will need every last vote to take down Obamacare.
     
    • From airplanes to airwaves. Dame Carolyn McCall will be CEO of broadcaster ITV, leaving EasyJet to find a new pilot.
     
    • Brexit Secretary David Davis is in Brussels for new Brexit talks, as the clock ticks and the stakes get higher.
  • The UK's economic growth will continue to struggle this year as rising inflationary pressures and muted earnings growth weigh on consumer spending.
     
    That's according to a new report by EY's ITEM Club, which also says that while Britain's election result increased uncertainty, it has enhanced the prospect of a more business-friendly Brexit.
     
    Peter Spencer, Chief Economic Advisor at EY ITEM Club says there is massive uncertainty hanging around Brexit but the "Hard Brexit" that everyone was focused on before the election looks a lot less likely.
     
    Spencer says a "transition arrangement" looks to be the obvious next step which will buy the negotiating parties some time.
     
     
    On the future of Theresa May, Spencer says if she stepped down it could ease agreement with Europe in some key areas such as the  role of the European Court of Justice.
     
    Meanwhile on the Futures indices European stocks look like they might open positive this morning.
     
    This print taken at 07:32 a.m. London time:
     
     
  •  
    What the pound has lost is the shine it had because of the risk of the euro collapsing. That risk has gone.
     
    - Daniel Lacalle, Chief Economist at Tressis Gestion
     
    Against the dollar, sterling is back into the 1.30 handle although this is viewed largely as a dollar weakness story.
     
     
  • China's steel output hit a record high in June, fueling worries of a growing glut. Bigger profits from rising prices helped boost production above 73 million tonnes.
     
    Aluminium output also soared to the highest on record.  The figures come amid a dispute with the US, which accuses China of flooding the market with cheap steel. 
     
    A worker at the Dongbei Special Steel Group plant in Dalian, China.
     
    Alon Olsha, Senior Analyst at  Macquarie says it is quite difficult to see China maintaining production at this level through the rest of 2017.
     
    He  says the surprisingly strong levels of steel production has been held up so far by real estate demand.
     
    Olsha says it "presents a bit of a headwind for miners" but notes that commodity prices have been higher than forecasts so stock prices shoudl remain supported.
     
    The analyst says you can expect to see a greater level of steel exports from China in the second half of 2017.
  • European markets are now open for trading. The pan-European Stoxx 600 has started the day on a slightly positive note, up 0.07 percent.
     
     
     
     
  • Major European indexes have also opened slightly higher this morning as investors react to robust economic growth data in China and await the second round of formal Brexit talks in Brussels.
     
     
  • Dame Carolyn McCall, the outgoing CEO of EasyJet, has been named the new chief executive of ITV. Dame Carolyn has experience running a major media business, having previously led the Guardian Media Group. The reported change in leadership comes at a difficult time for EasyJet, which is in the midst of repositioning its business in the wake of the Brexit vote.
     
     
  • Telenor has reported a beat in second quarter earnings and raised its outlook for the full year.  Total revenues increased by 2 percent while earnings hit an all time high. 

    The Norwegian telecoms firm also announced a share buyback programme after receiving proceeds from recent divestment.
     
     
  • Consumer goods giant Unilever, and canned meat producer Hormel Foods are bidding for Reckitt Benckiser's food business.That's according to the Sunday Times, which predicts a host of other companies are likely to submit rival offers. Reckitt's food division is expected to sell for over 2.2 billion pounds.
     
     
  • Let's take a look at the best and the worst performing stocks this morning:
     
  • Ben Gutteridge, Head of Fund Research at Brewin Dolphin has joined Daniel Lacalle for a strategy chat on set.
     
    He says he's a little cooler on European stocks and still sees some value in the U.S. tech sector.
     
    He says valuations look stretched but there is a "winner takes all" argument that suggest top U.S. stocks can push on further.
     
     
    Gutteridge says the US data numbers on Friday and earnings downgrades can be expected to feed into lower bank share prices but these financials are still further along the recovery cycle than elsewhere across the globe.
     
    The banking story is not so hot but is doesn't derail our preference for U.S. equities.
  • Pascal Soriot, the CEO of Pharmaceutical firm AstraZeneca, is to host a results call with reporters on July 27th. This comes amid speculation about his future at the firm, following reports he could be leaving for Teva Pharmaceutical.
     
     
  • Renault shares extend gains after reporting record vehicle sales for the first half, stock up nearly 1 percent:
     
     
  • Just moments ago David Davis (L) and Michel Barnier (R) offered up this handshake as they outlined how they will conduct Brexit talks.
     
    The two men represent Britain and Europe respectively in the Brexit negotiations are are sitting down for a second round of talks in Brussels today.
     
    It is all very cordial and both men says it is now time to get in to the substance of the matter: 
     
    • Citizens rights
    • Finance
    • Separation issues
    • Northern Ireland
     
  • Here are your top stories at this hour:
     
    • Surprise! Chinese growth reports are better than expected. But American inflation and retail numbers come up short.
    • Now the real Brexit talks begin. Michel Barnier and David Davis meet in Brussels, promising to go beyond the pleasantries and get into the tough issues.
    • From airplanes to airwaves. Dame Carolyn McCall will be CEO of broadcaster ITV, leaving EasyJet to find a new pilot.
    • Telenor shoots to the top of the Stoxx 600 as second quarter earnings beat expectations and it launches a share buyback 
       
  • Telenor has reported a beat in second quarter earnings and raised its outlook for the full year.  
     
    Total revenues at the Norwegian largely state owned firm increased by 2 percent while earnings hit an all time high. 
     
    At 09:45 a.m. London time, the TV team will  speak on air with Sigve Brekke, CEO of Telenor.
     
     
  • Contracts for the first phase of the UK's HS2 high speed rail project have been announced. The big winners were Balfour Beatty, Carillion and Skanska, all of whom were part of joint ventures. In total, the deals announced today are worth 6-point-6 billion pounds. 
     
    Meantime, struggling construction company Carillion has appointed EY to lead a strategic review of its business. The company's shares have been under intense selling pressure since its CEO resigned and it issued a profit warning last week. 
     
     
  • Mark Farmer, the CEO of Cast Consultancy joins us live to discuss the trends in the construction sector:
     
    The construction industry is really struggling at the moment. I think there are some structural changes that manifest themselves in this long string of poor profit warnings and financial results coming. There are some issues around capacity. House building has been on a high for the past 8-9 years but the issue is the actual capacity in construction sector and labour forces are in decline.
     
     
  • The U.S. dollar nursed losses at a 10-month low against a basket of currencies on Monday as investors cheered upbeat Chinese data by piling into leveraged positions such as the Australian dollar and other high-yielding currencies.

    Some of the biggest gains were seen in the yen crosses such as sterling, which was up 0.1 percent on the day as investors added bets that U.S. interest rates would rise very gradually in the coming months after the latest data.
     
     
  • Oil prices have risen in session as increased demand from china combines with evidence that growth in the number of drillers in the United States is easing.
     
    U.S. drillers added two oil rigs in the week to July 14, bringing the total to 765, Baker Hughes said Friday.
     
     
    Meanwhile Chinese refineries increased crude throughput in June to the second highest on record.
     
    Some independent plants are reportedly raising output even as state oil majors prepare to cut production during the peak summer season.
  • Here are your top headlines at this hour:
     
    • European equities head higher as investors digest better data from China and the US, as earnings season gets into full swing
    • Now the real Brexit talks begin. Michel Barnier and David Davis meet in Brussels, promising to go beyond the pleasantries and get into the tough issues.
    • From airplanes to airwaves. Dame Carolyn McCall will be CEO of broadcaster ITV, leaving EasyJet to find a new pilot.
    • Telenor shoots to the top of the Stoxx 600 as second quarter earnings beat expectations and it launches a share buyback 
       
  • It's that time again: China's second-quarter GDP growth beat analyst expectations on Monday, but markets stayed in the red, with little sign of strength even after the numbers surprised.

    Mainland markets traded in negative territory for the first half of the day, with the Shanghai Composite down almost 2.5 percent at one point and the Shenzhen Composite down more than 3 percent. After the GDP data release, however, some of those losses were recovered and the Shenzhen Composite was down 2.2 percent and the Shanghai Composite was down only 0.11 percent at 11:51 a.m. HK/SIN.

    The ChiNext, the start-up board at the Shenzhen Stock Exchange, was down almost 5 percent on the day, but recovered somewhat as trade continued.
     

    China GDP beat expectations, but its markets are rattled — here's why

    CNBCChina's second-quarter GDP growth beat analyst expectations on Monday, but markets stayed in the red with little sign of strength.
     
  • The British and EU Brexit negotiators met on Monday, pledging to "get down to work" in a first full round of talks on Britain's divorce terms from the European Union.

    We made a good start last month but we are now getting into the substance of the matter, British Brexit Secretary David Davis told reporters as he was welcomed at the European Commission in Brussels by the EU negotiator Michel Barnier.

    For us, it's incredibly important we now make good progress," added Davis, who held a first day of talks a month ago to agree an agenda, a year after Britons vote to leave the EU. "Now it's time to get down to work and to make this a successful negotiation, he added.

    Barnier said: "We will now delve into the heart of the matter. We need to examine and compare our respective positions in order to make good progress."

    Both men declined further comment, with Barnier saying they would brief the media on Thursday after their teams have spent four days tackling a range of priority issues.
     
    BELGIUM-BRITAIN-EU-BREXIT : News Photo
    by Spriha Srivastava edited by luke.graham 7/17/2017 8:16:52 AM
  • Gold rose on Monday as investors sought higher returns in alternative asset classes as the outlook for further interest rate hikes in the United States dimmed following softer U.S. economic data last week that also pushed the dollar to multi-month lows.
     
     
  • U.S. stock index futures point to a relatively flat open, as investors turned their attention to corporate earnings results, while keeping an ear out for any news out of Washington.

    Netflix and BlackRock will be some of the major names kicking off earnings reports on Monday, with investors also looking for results out of JB Hunt Transportation, Brown & Brown and Equity LifeStyle Properties. 
     
     
  • Commenting on China’s Q2 beating expectations, Shilen Shah, Bond Strategist at Investec Wealth & Investment, said:
     
    The better than consensus print for Chinese Q2 GDP (6.9% vs. 6.8%) suggests that the economy is maintaining momentum with both industrial output and fixed asset investment somewhat stronger than estimates. Despite concerns over China’s so called shadow banking system, the global economic recovery seems to have supported Q2 GDP. Retail sales were somewhat stronger; however, the underlying data suggests that external demand and capex remain the key drivers of growth.
  • The United Arab Emirates was not responsible for an alleged hack of Qatari websites which helped spark a month-long diplomatic rift with Doha, the UAE's minister of state for foreign affairs said on Monday.

    Speaking at a forum in London, Anwar Gargash also said the UAE would not escalate its boycott by asking companies to choose between doing business with it or with Qatar.
  • Telenor has reported a beat in second quarter earnings and raised its outlook for the full year. 
     
    Total revenues increased by 2 percent while earnings hit an all time high. 

    The Norwegian telecoms firm also announced a share buyback programme after receiving proceeds from recent divestments.
     
    Sigve Brekke, CEO, Telenor join us on the phone from Fornebu, Norway to discuss these numbers:
     
    Very good quarter and our focus is now to continue that into the third and fourth quarter.
     
     
     We have an increasing dividend, growing on it year by year. We are a growth company and looking for opportunities for growth.
  • U.K. and European negotiators are holding their second round of talks Monday on how the country will leave the Union.

    The talks are taking place just a few days after the EU pressured the U.K. to outline its positions, particularly in key areas such as money owed to the EU and the Irish border.

    CNBC takes a look at where this historical negotiation stands as investors, political analysts and the general public try to keep a track of what's going on.
     

    This is where Brexit talks stand as the second round begins

    CNBCCNBC takes a look at where this historical negotiation stands as investors, political analysts and the general public try to keep a track of what's going on.
  • European stocks continue to trade lower as investors keep an eye on Brexit talks in Brussels:
     
     
  • The Hargreaves Lansdown Investor Confidence Index fell sharply in July, as investor sentiment adjusted to the new political situation in the UK and the commencement of Brexit negotiations.
     
    The index fell 20%, from 86 points last month to 69 points in the latest reading. The long term average level for the index is 99, and the lowest level since the index was launched in 1995 is 59, which was recorded in November 2016.
     
    Laith Khalaf, Senior Analyst, Hargreaves Lansdown analyses these numbers:

    Investor confidence is scraping along pretty close to the bottom of the barrel right now, in stark contrast to the stock market, which is riding high. 
     
    The UK currently finds itself in economic limbo, with the election of a limp government and the start of the long and winding Brexit journey both creating a sense of suspense, which appears to have taken its toll on investor sentiment.
     
    There is a silver lining to the cloud currently casting a shadow over investor confidence, because it suggests markets are not being driven by reckless abandon, and that there is scope for improving sentiment to have a positive effect on stock prices.
     
    Investors are also keeping a keen eye on proceedings at the Bank of England, and are increasingly confident of a rate rise following the split MPC vote in June. The market is in agreement, pricing in a 50% chance of a rate rise by the end of this year.
  • It's the earnings season now and the big banks are expected to report soon. Banks in Europe are trading lower this morning as investors wait for a string of earnings and keep an eye on Brexit talks:
     
     
  • The trial of Barclays and four former top executives charged with fraud over undisclosed payments to Qatari investors as part of a 12 billion pound ($15 billion) emergency fundraising during the 2008 financial crisis has been set for January 9 2019, a judge said on Monday.

    The Serious Fraud Office (SFO) last month charged Barclays Plc, John Varley, Roger Jenkins, Tom Kalaris and Richard Boath with conspiracy to commit fraud by false representation when they negotiated a capital injection for the bank from Qatar.

    The bank, Varley and Jenkins also face one charge of unlawful financial assistance. That's according to Reuters.
     
     
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