World Markets Live - July 20 - CNBC Live Events
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CNBC Live Events

World Markets Live - July 20

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

  • UK Trade Minister Liam Fox to call for new rounds of trade liberalization under world trade organisation, according to an advance draft of speech seen by Reuters.
  • ECB's Draghi to tread softly as markets anticipate the start of 'tapering' in September

    CNBCThe European Central Bank is widely expected to hold interest rates steady on Thursday with many market watchers expecting the bank to announce in September plans to reduce its bond buying program.
  • U.S. stock index futures pointed to a flat to slightly higher open on Thursday, as investors prepared to digest another batch of corporate earnings reports.

    In earnings news, Blackstone, Abbott Labs, Bank of NY Mellon, eBay, Microsoft and Visa are some of the major names set to report either before or after the bell. 
     
     
  • Britain wants a new round of global trade liberalisation at the World Trade Organization (WTO), Trade Minister Liam Fox will say in a speech in Geneva on Thursday, according to an advance draft text seen by Reuters.

    Fox will also say that Britain sees the agenda of global trade being shaped by the digital economy, trade promotion as the main tool of development, and services.

    Britain wants to see a "positive outcome" on the digital economy at the WTO's two-yearly ministerial conference in Buenos Aires in December, according to the draft.
     
    That's according to Reuters.
  • Unilever CEO says still looking at bringing Dollar Shave Club to UK. That's according to Reuters.
  • When North Korea decided to go nuclear, it committed to a huge investment in a program that would bring severe sanctions and eat up precious resources that could have been spent boosting the nation's quality of life.

    Money well spent?

    Leader Kim Jong Un seems to think so.

    North Korea's nuclear and missile development programs have without doubt come at a high cost, but the North has managed to march ever closer to having an arsenal capable of attacking targets in the region and — as demonstrated by its July 4 test launch of an intercontinental ballistic missile — the United States' mainland.
     

    North Korea’s nuclear program could be costing less than one US aircraft carrier

    CNBCWhen North Korea decided to go nuclear, it committed to a huge investment in a program that would bring severe sanctions.
  • U.S. listed shares of Sanofi up 1.4 percent at $47.48 premarket after Ablynx, Co enter collaboration to develop Nanobody product candidates.
  • Deutsche Bank is preparing for hard Brexit, CEO Cryan tells employees. That's according to Reuetrs citing a Bloomberg report. The CEO says will probably book the "vast majority" of its assets in Frankfurt.
  • UK Media Minister Bradley says received detailed representations from Twenty-First Century Fox and Sky on proposed merger. She says can only make final decision on referring Fox-Sky merger after consider representations. 
     
    Minister Bradley says not in a position to make decision on Sky-Fox merger today, still minded to refer to Phase 2 investigation.
  • Sky shares turn positive after UK Media Minister Bradley says final decision on Fox-Sky made "in the coming weeks"
     
     
  • Here are some excerpts from the speech Culture Secretary, Karen Bradley, made to the House of Commons this morning re: update on proposed Sky / 21st Century Fox merger
     
    I can confirm that I have received detailed representations from 21 Century Fox and a letter from from Sky - which I will aim to publish - subject to statutory and confidentiality requirements -  once I have taken my final decision.  I also received a letter from Lachlan and James Murdoch - on Friday last week - and a further letter from 21 Century Fox this Monday which they have since published.
     
    The detailed representations from 21 Century Fox raise a number of points on Ofcom’s public interest test report - and the analysis underpinning Ofcom’s recommendations - contesting its view that the transaction raises public interests concerns which justify a referral to a Phase 2 investigation by the CMA.  
     
    Neither of the parties have offered any further or amended undertakings in lieu of referral.
     
    I also have received a substantial number of responses in relation to my referral decision.   
     
    In coming to my decision in this case, I must take account of all relevant representations made to me.  As a result, my final decision on referral can only be made after I have fully considered all relevant evidence on both the plurality and commitment to broadcasting standards grounds. Given the consultation only closed on Friday, there has not been time to consider all the representations, and I am not in a position today to make my final decision on referral.
  • What can we expect from the ECB today? Johannes Mayr, eurozone expert at BayernLB, shared his thoughts with CNBC.
     
    Unlike many observers, we do not expect the ECB to drop its easing bias on QE at the July meeting. However, Draghi will reiterate that QE parameters will be adjusted in Autumn if the economic outlook keeps improving. 
     
    Writing on his blog, economist Alessandro Tentori warned that portfolio rebalancing, one of the three main transmission channels of ECB's asset purchase programme, is not working.
     
    The process of portfolio rebalancing in the Eurozone remains a slow one. Some progress is being made over the years, but we're still far from pre-crisis levels despite the phenomenal non-standard tools deployed by the ECB. I am afraid, this transmission channel might eventually end up colliding with national interests, thus influencing a political process that is already showing signs of stress. 
     
    ECB's effort to demonstrate that the portfolio rebalancing channel is making good progress is somewhat biased. For example, the purchase of European equities by non-resident investors is seen by the Eurotower as a sign of confidence. However, it also exposes European markets to stability risks, as foreign investors are less sensitive to domestic European regulation and a fast reversal of the flow cannot be centrally controlled (see foreign selling of Eurozone periphery in 2011). 
  • Bank of New York Mellon reports second quarter earnings per share of 88 cents on net income of $975 million and revenue of $3.96 billion. Revenue increased 5 percent year over year.
     
    The bank says Q2 net interest revenue increased to $826 million from $767 million. The bank's assets under management increased 6 percent to $1.77 trillion.
  • Dover reports Q2 earnings per share of $1.04, beating estimates of $1.01. The company reports net income of $164.1 million on revenue of $2 billion. It sees full year revenue up 12 to 14 percent, an increase on its previous guidance of 11 to 13 percent.
  • The Stoxx 600 is turning flat, up just 0.1 percent. However, the major European bourses are performing well.
     
     
  • Travelers Companies reports Q2 earnings per share of $2.11, matching forecasts. Total revenue increased to $7.184 billion from $6.785 billion the year before.
     
    net income was $595 million. The company says Q2 core income and core return on equity was impact by high levels of catastrophe and non-catastrophe weather-related losses.
  • Blackstone reports Q2 revenue of $1.55 billion. Distributable earnings was $781 million, or 63 cents per share, up 58 percent year on year.
  • Tobacco company Philip Morris International reports Q2 revenue of $19.3 billion, up 1.5 percent. Earnings per share was $1.14, on net incoem of $1.78 billion.
  • The EU's Brexit negotiator Michel Barnier says this week's negotiations with the U.K. showed a "fundamental divergence on how to guarantee citizens' rights," Reuters reports.
     
    He says the EU sees no alternative to the EU court overseeing EU citizens' rights in the U.K. He says the U.K. must clarify its position on the financial settlement with the EU.
     
    He also says the impact of Brexit on Ireland and the North-South divide needs to be studied more and the U.K. must clarify next month how it will maintain the common travel area with Ireland after Brexit.
  • Speaking in Brussels, the U.K. Brexit Minister David Davis  says the U.K. is ready to work hard and at pace in Brexit talks and he wants a deal that works for whole of the U.K., Reuters reports.
     
    He says the U.K. is encouraged by talks on key issues with the EU this week. He says progress was made on Euratom, market goods and other issues. He says there are many concrete areas where the two sides agree on citizens' rights.
  • A spokesman for Turkey's Erdogan says remarks by Germany's foreign minister are unfortunate and that Germany needs to think rationale.
     
    This is after Germany called for the release of a German human rights activist arrested in Turkey.
     
    The spokesman says Germany is treating many innocent Turks as spies and that Germany needs to accept the independence of Turkey's judiciary.
  • The ECB will shortly release its latest monetary policy decision. The euro is currently trading down 18 basis points against the dollar.
     
     
  • The euro has dropped against the dollar by a further 10 basis points after the latest ECB decision to keep rates unchanged.
     
     
     
  • It is no surprise the ECN has kept rates unchanged for now, says Kerim Derhalli, CEO and founder of invstr.
     
    Despite some evidence that monetary stimulus has been working, the fact that inflation in the eurozone slipped back to 1.3% in June suggests that a change now would be unwise. 
     
    Draghi will have also been mindful of the market overreaction to his speech in Sintra, which saw a surge in bond yields and the euro.
  • The accompanying press statement, which is almost the same as last month, looks like this:
     
    It is a touch more dovish than expected for on air  guest Valentin Marinov, Head of G10 FX research, Crédit Agricole.
     
    The key "dovish" statement appears to be that the ECB stands ready to increase its stimulus program if the euro zone outlook falters or if financial conditions run contrary with achieving desired inflation targets.
     
    That commitment to consider more stimulus is perhaps a bit of a surprise for commentators who were looking to see signs that the ECB is ready to soon RAISE rates, taper QE and tighten policy.
  • German and French bond yields have dropped after the latest ECB rate decision. Italian bond yields were already negative today and are moving lower.
     
     
  • Valentin Marinov, head of G10 FX research at Crédit Agricole, says the important angle for the ECB is the impact of euro appreciation on inflation and less so on growth.
     
    He says the ECB’s latest statement is more dovish than previously.
     
    It seems like the governing council wants to keep all its options on the table, so that optionality is still there. To me that suggests the discussion on how to approach tapering, especially in view of the persistent tightening of the Eurozone financial conditions is still ongoing.
     
    He says it will be interesting to see what happens at the next meeting in September.
     
     
     
  • Here are the top headlines following the ECB decision.
     
    • The ECB keeps the easy money flowing, saying it stands ready to bolster its bond buying programme if the economic outlook becomes less favourable.
    • The euro falls on the surprisingly dovish statement by the central bank, coming off its 14 month high against the dollar
    • Government bond yields edge lower and bank stocks come off, while the rest of European equity markets stay in the green.
    • We agree to disagree! The EU and UK's top Brexit negotiators say this week's talks in Brussels have revealed fundamental differences on how to guarantee citizens' rights.
  • European equities are still firmly in positive territory with the German d French markets getting a particular boost from that ECB decision and statement.
     
     Perhaps a relief trade as any suggestion that a more hawkish outlook was coming from Draghi's team would undoubtedly have had a negative effect on stock prices.
     
     
  • Bryn Jones, head of fixed income at Rathbones, says the market expected no change from the ECB today.
     
    I think they’ve put a dovish comment in there just to stop the market from overpricing any possible tapering. But let’s face it they’re coming up against a ceiling now of bonds they can buy.
     
    They’re struggling to buy any Portuguese or Irish bonds because they can’t hold more than a third of the government bond market.
     
    He says an announcement is due in the next few months for the market to understand what the ECB will be doing. He also says the ECB's rhetoric has changed since Draghi spoke at Sintra.
     
     
  • EU Chief Negotiator Michel Barnier says the UK needs to clarify key issues in the next round of Brexit talks. Speaking at a press conference with his U.K. counterpart David Davis, he added that the two sides are still far from finding a solution on EU citizens' rights. Those remarks follow four days of official negotiations over Britain's departure from the bloc.
     
    Davis, left, and Barnier
     
    Meanwhile, Britain could survive without an EU trade deal. That's what the U.K.'s Trade Minister Dr Liam Fox told the BBC in an interview which aired this morning. His intervention comes as the latest round of intensive Brexit talks draw to a close.  
     
  • Peter Dixon, chief U.K. economist at Commzerbank, says inflation is hugely important to ECB policy making.
     
    The ECB always said we’re going to do QE in a bid to get inflation back towards target and it’s not happening and it’s unlikely to happen either in the course of next year  to any appreciable degree.
     
    Dixon says the view is core inflation will be closer to 1 percent than 2 percent, which shows the lack of pass-through from the economic pick up to the labor markets and to prices. He says wages are not reacting the way you would expect to the economic improvement. 
     
     
     
  • ECB President Mario Draghi will shortly begin his press conference following the governing council's latest monetary policy decision.
     
     
  • A quick check-in on the U.S. as jobless claims data and the results of the Philly Fed manufacturing survey come in.
     
    U.S. jobless claims for the week ending July 15 comes in at 233,000. It was expected at 243,000. The previous reading was revised to for 248,000.
     
    The Fed business index for July fell to 19.5 versus 27.6 in June. It was expected at 20.0.
     
    The employment index fell to 10.9 from 16.1 and new orders fell to 2.1 from 25.9 the month before.
  • U.S. treasury yields are falling to session lows after the latest jobless data and Philadelphia business index.
     
     
  • Mario Draghi has begun his press conference.
     
    You can watch the whole thing live here or keep following the blog to stay up to date.
     

    Mario Draghi talks monetary policy after ECB holds rates steady

    CNBCDraghi could give clues on the anticipated end to the ECB's ultra-loose monetary policy.
  • Mario Draghi says monetary policy has continued to secure very favourable financing conditions. He says the risk to the growth outlook are broadly balanced.
     
    He says growth is yet to translate into stronger inflation dynamics, and that headline inflation is dampened by energy prices. He says the ECB stands ready to increase asset purchases if needed.
  • The euro has pared losses against the dollar is now gaining. This may have something to do with the weaker Philly Fed business survey data released earlier, as well as dovish statements from Mario Draghi's press conference.
     
     
  • Draghi says the global recovery should support exports, but warns downside risks from global factors still exist.
     
    He is now taking questions from journalists.
  • ECB President Draghi says euro repricing has received some attention. He says discussions on QE changes should take place in the Autumn but sets no precise date.
  • Draghi says inflation is not where the ECB wants it to be or where it should be. 
     
    He says there are confident it will get there, but it's not there yet. They only need to wait for wages and prices to reach their target. He says the last thing the ECB wants is unwarranted tightening of financial conditions that slows the recovery.
     
    This as the euro hits session highs.
     
     
  • The ECB is staying on the dovish side and does not seem to be in a hurry to move towards tapering. That's according to Carsten Brzeski
    chief economist at ING.

     
    Given the experience of earlier meetings, the message of the 1.45pm CET release is the main message the ECB would like to give market participants to start their summer vacation with.
     

     

    Not only did the ECB keep interest rates unchanged, but it also kept the language on QE unchanged. The key sentence to watch out for was and still is “the Governing Council stands ready to increase the programme in terms of size and/or duration”. In our view, this is a clear sign that the ECB does not want to pour more oil on the small taper tantrum fire seen in financial markets over the last few weeks.
     
    This as the euro steadily rises against the dollar.
     
     
     
  • Draghi says today's statement and his comments from Sintra are not very different. 
     
    He says the factors holding back inflation will last for some time and are not permanent.
  • Draghi says his comments on reflation just means the concerns of deflation have been replaced with hopes for inflation.
     
    He says the council trusts the strength and power of its monetary package.
  • ECB President Draghi is answering questions from CNBC's Annette Weisbach. He says he is confident that the programme can continue smoothly.
     
    On the topic of buying Greek government debt, he says it is up to the Greek government to tap the markets with a bond issue and adds that there has been serious progress in Greece in last several months..
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