World Markets Live - July 24 - CNBC Live Events
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CNBC Live Events

World Markets Live - July 24

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. Here are the morning's top headlines:
     
    • Germany's biggest automakers come under pressure, as EU regulators investigate allegations of a secret cartel among Volkswagen, BMW and Daimler.
    • The White House signals President Trump may be open to signing a bill slapping tougher sanctions on Russia, as Congress presses a harder line against Russian leader Vladimir Putin.
    • Energy traders have their eyes on St. Petersburg, where the OPEC and non-OPEC meeting may force holdouts Nigeria and Libya into joining a deal to cap oil production.
    • The auction for Nestle's candy business heats up, as the American sweets-maker Ferrara reportedly prepares a bid.
       
    Also, here are the opening calls for European markets.
     
     
     
  • Oil prices are moving higher ahead of an OPEC and non-OPEC members meeting in Saint Petersburg later today.
     
    Crude bounced back after a steep fall the previous session on expectations that oil ministers might agree a conditional cap on  rising Nigerian and Libyan output.
  • Asian markets slipped during the overnight session. The stronger yen pressured the Nikkei, and the Australian stock market retreated as far as 1 percent. Meanwhile, Chinese shares bucked the trend to make gains.
     
     
     
     
  • The European Commission could be investigating collusion among Germany's top automakers following a report in Der Spiegel that BMW, Volkswagen, Audi and Porsche may have worked together to fix the prices and designs of diesel emissions treatment systems.
     
     
  • Royal Philips reports Q2 sales of 4.3 billion euros. The Netherlands company reports comparable sales growth of 4 percent. Net income was 161 million euros. The company says its outlook for 2017 remains unchanged.
     
     
  • Julius Baer reports record adjusted net profit of 404 million Swiss francs. Net inflows were 6.1 percent. Its cost to income ratio was 69 percent.
     
    The Swiss firm says assets under management rose 6 percent to 355 billion Swiss francs.
  • Wal-Mart's British supermarket arm Asda is eyeing a £4.4 billion takeover of discount retailer B&M European Value Retail. That's according to the Sunday Times.
     
     
    The newspaper says Asda is in the early stages of assessing a bid for B&M. Asda has suffered a decline in sales amid increased competition from German discounters Aldi and Lidl. 
  • Candy maker Ferrara is reportedly preparing to bid for Swiss food group Nestle's U.S. candy business. That's according to Reuters.
     
    The deal would add Butterfinger and Baby Ruth candy bars to Ferrara's offerings, which now include candies like Lemonheads and Now & Later.
     
     
    Nestle has said it would explore a possible sale of its U.S. sweets business, which has been valued at between $1.5 to $2 billion.
  • Growth in Japan's manufacturing activity slowed to an 8-month low, preliminary figures show. Flash PMI dipped to 52.2 in July, as export demand stagnated. But optimism in the outlook remains, with the index measuring expectations for future output rising to 63. That's the highest since IHS Markit began collecting the data five years ago.
     
    The Nikkei is up around 4.5 percent so far year to date.
     
     
  • The International Monetary Fund has lowered its forecasts for US and UK economic growth this year, but has kept its global growth forecast for 2017 unchanged.
     
    Slowdowns in the U.S. and U.K. are expected to be offset by increased growth for many euro area countries, including Germany, France, Italy and Spain. 
     
     
  •  
    Despite cutting the economic growth outlook for the U.S. and U.K., the International Monetary Fund kept its global growth forecast unchanged on expectations the euro zone and Japanese growth would accelerate.
     
     
  • CNBC’s Steve Sedgwick says the OPEC strategy to rebalance the market is working, but adds that he thinks it will work in about 2 years’ time.
     
    It’ll work a lot longer than people think. The problem is as well you’ve got this Nigeria, Libya issue where fantastically they’ve sorted out a lot of their civil strife problems that means they’ve got higher output. Shale’s higher output as well. That means that of the 1.8 million (barrels of oil) taken off the table, you’re down to about 0.8 million.
     
    Oil prices are stable this morning and rising ahead of an OPEC and non-OPEC meeting in Russia.
     
     
  • Donald Trump is ready to slap tougher sanctions on Russia. The White House said the U.S. president is open to sign a new law that would tighten the screw on Russia. 

    This after Congress members struck a deal allowing new sanctions on Russia, Iran and North Korea and limiting Trump's power to lift those sanctions. 
     
     
  • The EU Commission President has warned against unilateral U.S. sanctions. Jean-Claude Juncker has called for a review of how Brussels should respond, if American measures affect European firms conducting legitimate business in Russia.
     
    Any significant EU retaliation  would require the support of the EU's 28 governments and would likely face resistance from members such as Britain and Hungary.
     
     
    Meanwhile, the Russian Ambassador reportedly discussed campaign-related matters with Jeff Sessions. The Washington Post reports that intercepted conversations between Sergey Kislyak and Moscow reveal that he and Sessions talked about policy issues of interest to the Kremlin.
     
    The report contradicts the attorney general's assertion that he "did not have communications with the Russians."
  • Britain's trade secretary Liam Fox is in Washington to meet with U.S. officials to discuss a post-Brexit trade deal. This after Fox said he supports a transitional agreement of about two years, to ease Britain's departure from the European Union.
     
     
    Speaking on the BBC, Fox said a transition deal would help businesses making investment decisions. But he added that it would have to end before the U.K.'s next election in 2022.
  • Peter Trubowitz, professor at the London School of Economics, says it’ll be a big challenge for new White House communications director Anthony Scaramucci to sort out President Trump’s communication issues.
     
    He got off to a good start yesterday. He was very aggressive on TV in the U.S. He’s said today he’s going to hold a meeting with everybody in the White House and is going to clamp down on leaks from the White House and put the screws to everybody.
     
    Trubowitz predicts Trump's first big win will probably be on tax reform as it's possible he'll get something there.
     
     
     
  • The head of Russia's Gazprom Export welcomes an EU court ruling which lifts a ban on Gazprom's access to the Opal gas pipeline, according to Reuters.
  • French TV channel TF1 report first half current operating profit of 107.6 million euros. Q2 current operating income rose to 71.3 million euros from 42.7 million a year ago, but revenue dropped to 537.8 million euros from 543.3 million a year ago.
  • French President Emmanuel Macron has seen his populartity rating fall by 10 percentage points this month. That's according to an Ifop poll. It said 54 percent of people in France were satisfied with Macron in July, down from 64 percent in June. It is the biggest decline for a new president since 1995.
     
     
  • Profit warnings in the UK were down 40 percent in Q2, compared with the first quarter. EY's report shows UK quoted companies issued 45 warnings in the second quarter. It's the biggest single quarterly percentage drop in profit warnings since the second quarter of 2009. But EY warns that companies should not become complacent.
     
    Alan Hudson, head of restructuring for UK & Ireland at EY, says profits warnings come when people are missing market expectations, but we’re currently in a world where market expectations are being played down.
     
    We should actually expect fewer warnings and that’s what we are seeing right now. What we’re saying is don’t assume that that means everything is rosy out there.
     
     
     
  • Later this morning, CNBC will be speaking to Jeffries Briginshaw, the CEO of BritishAmerican Business. 
     
     
  • Telecom Italia's CEO has told newspapers his departure is linkd to Vivendi's decision to appoint another managing director. The CEO says the group is on the right track now and that his severance package is not a scandal.
  • These are the top news headlines this morning:
     
    • Germany's biggest automakers come under pressure, as EU regulators investigate allegations of a secret cartel among Volkswagen, BMW and Daimler.
    • The White House signals President Trump may be open to signing a bill slapping tougher sanctions on Russia, as Congress presses a harder line against Russian leader Vladimir Putin.
    • Energy traders have their eyes on St. Petersburg, where the OPEC and non-OPEC meeting may force holdouts Nigeria and Libya into joining a deal to cap oil production.
    • Philips meets expectations, with net profit of 439 million euros in the second quarter, on the back of a strong order intake.
  • Reckitt Benckiser reports its interim dividend is rising 14 percent to 66.6 pence per share and adjusted diluted earnings per share rose 15 percent to 124.9 pence.
     
    However, first half revenue fell 1 percent to £5.017 billion. Net revenue was £2.479 billion. The company's full year net revenue target was adjusted to 2 percent from 3 percent.
  • The European Commission could be investigating collusion among Germany's top automakers following a report in Der Spiegel that BMW, Volkswagen, Audi and Porsche may have worked together to fix the prices and designs of diesel emissions treatment systems.
     
     
    CNBC's Annette Weisbach says markets are taking the allegations seriously. She says the reports allege collusion on pricing. 
     
    These are only allegations and this is only one report from Der Spiegel, but still the markets are taking it very seriously. We've seen shares rally down tremendously, up to 4 percent in late Friday trading.
     
    Analysts are taking it very seriously with notes coming out over the weekend, saying if the allegations are true the fines could run into several billion euros for all these carmakers. The time horizon is very long, so the potential damages to consumers could be very high.
  • Ben Rogoff, fund manager at Polar Capital, says the challenges to the traditional autos industry are well understood. 
     
    I think some of those forwards PEs are slightly rose-tinted in that they don’t necessarily capture off-balance sheet liabilities, like for example pension funds and massive pension fund shortfalls, certainly at GM and others.

    The challenges are well known, the market is huge and cars aren’t used. The utilization rate of cars are 4 to 5 percent. So it’s a large market that isn’t very efficient.
     
     
     
  • ECB board member Yves Mersch is speaking at the Bank Negara Malaysia Monetary Policy Conference. He says as conditions normalise, it is unlikely that conventional policies will remain necessary, according to Reuters.
     
    Mersch says the development of global value chains is facilitated by technology which could potentially change the influence of global inflation factors on domestic inflation. He says technological changes may lower the NAIRU (non-accelerating inflation rate of unemployment).
     
     
  • It's been a challenging few months for Alphabet, which has been hit with a mega EU fine and complaints over placement of its YouTube ads.
     
    Alphabet reports its second quarter earnings after the bell. Revenue is seen growing to over $25 billion, fuelled by continued strength in advertising.
     
    But the EU's $2.7 billion fine could overshadow the numbers, with analysts cutting their EPS forecasts by almost half, in anticipation of the one-off loss.
     
    Ben Rogoff, fund manager at Polar Capital, says the fine is not a significant cost to the company in and of itself.
     
    The issue for me as an investor is will this issue extend into other areas (the EU is looking into Android) and what that means.
     
    I think the bigger question is the EU is ruling on something called dominance. They’re not saying Google’s done anything wrong, they’re saying with great power comes great responsibility. And that’s a different question.
     
  • Anglo American Platinum has reports earnings results. The company says production is on track to meet the year end guidance of 2.35 to 2.4 million platinum ounces.
     
    It reports first half headline earnings of 747 million rand versus 1.65 billion a year ago. H1 diluted loss per ordinary share is 452 cents. Net debt decreased to 5.9 billion rand from 7.3 billion over the first half. The board has decided not to issue a dividend for the first half.
  • French President Emmanuel Macron will meet Libyan Prime Minister Fayez al-Serraj and Libyan Commander Khalifa Haftar on July 25, according to a statement from the president's office.
  • The newly appointed White House communications director defended a tweet from President Trump concerning his "complete power" to pardon. NBC News' Sarah Dallof has the full story.

  • China's customs office reports crude oil imports in June from Saudi Arabia and Iran are down year on year. Meanwhile, crude oil imports from Iraq are up 47.2 percent year on year and imports from Russia are up 27.1 percent year on year.
     
    Coal imports from Russia, Mongolia and Australia were also higher in June.
     
    China imported zero coal from North Korea in June, according to the date. 
  • A car bomb in the Afghan capital of Kabul has killed at least 35 people, according to Reuters citing an Afghan government official. The bomb blast occurred earlier today.
  • Shares of Paysafe soared on Friday after Blackstone and CVC Capital made a £2.9 billion bid for the payment processing company. The offer is the latest in a string of deals in the payments sector, including Vantiv's £7.7 billion deal for Worldpay.
     
    Samantha Tomaszczyk, senior reporter, TMT, Dealreporter, compares the payment space this year to the semiconductor space in 2015 and 2016. 
     
    It’s really a case of everyone talking to everyone. At Dealreporter we’ve picked up on those rumors dating back to several months ago.
     
    We have seen all of these players take part in consolidation, so not just Worldpay or CVC Blackstone.
     
    She says it is a very active space.
     
     
     
  • Ryanair has posted a 55 percent increase in first quarter net profit, beating expectations. The results were boosted by stronger bookings during the Easter period. However, the Irish carrier expects fares to fall by up to 9 percent in the second quarter. 

    Ryanair also says it could be forced to cancel flights from April 2019, if uncertainty around the Brexit talks continues. 
     
    Revenue in Q1 was 1.91 billion euros, with net profit of 397.1 million euros. The number of customers increased to 35 million versus 31.2 previously.
  • The CEO of Telecom Italia is reportedly seeking an exit payout of up to 30 million euros, according to the Financial Times. This after Flavio Cattaneo resigned due to alleged disagreements with Telecom's top shareholder Vivendi. 
     
     
  • Remember to take part in this week's Trader Poll. We want to know what is your favourite major tech stock reporting earnings this week?
     
    The choices are:
    • Facebook
    • Amazon
    • Alphabet

    Poll: Which is your favorite major tech stock reporting earnings this week?

    Of the four so-called FANG stocks, three are reporting this week: Alphabet, Facebook and Amazon.
     
  • European markets are now open. The Stoxx 600 is moving to the upside at the start of Monday's session.
     
    This after the index finished Friday's session down 1 percent.
     
     
     
     
  • French flash July composite PMI falls to 55.7 from June's reading of 56.6. A reading of 56.4 was expected by analysts polled by Reuters.
     
    The services PMI fell to 55.9, down from 56.9 in June, while manufacturing PMI rose to 55.4 from June's 54.8 and beating forecasts.
  • The Stoxx 600 is broadly flat at the start of trade, up just 0.08 percent.
     
    The individual European bourses are more mixed.
     
     
  • The European Commission could be investigating collusion among Germany's top automakers following a report in Der Spiegel that BMW, Volkswagen, Audi and Porsche may have worked together to fix the prices and designs of diesel emissions treatment systems.
     
    Shares in the automakers are falling to multi-month lows, following on from Friday's losses.
     
     
    BMW published a statement in relation to the allegations.
     
     
  • Wal-Mart's British supermarket arm Asda is eyeing a £4.4 billion pound takeover of discount retailer B&M European Value Retail, according to the Sunday Times.
     
    The newspaper says Asda is in the early stages of assessing a bid for B&M. Asda has suffered a decline in sales amid increased competition from German discounters Aldi and Lidl.
     
    David Miller, investment director at Quilter Cheviot, says B&M has been a disruptor in the retail sector that can compete with Amazon.
     
    They have a plan not to be destroyed by Amazon. A lot of retailers that I look at haven’t got that plan.
     
    It’s got 500 lines. They’re branded, they change the range through the year so the patio stuff comes out the right time of year and then September through to Christmas its cheap toys.
     
     
     
  • Several companies have reported earnings today. Here are the stocks moving markets:
     
    • Reckitt Benckiser is raising its interim dividend by 14 percent despite reporting a one-percent decline in revenues for the first half of 2017.The company's sales were hit by last month's global cyber-attack, which disrupted operations at many of its factories. Reckitt Benckiser is in the midst of a strategic overhaul, having agreed to sell its UK food division to McCormick and Co last week. 
    • Philips is launching a 1.5 billion euro share buyback program. The move comes as the company posted a 36 percent rise in second quarter net profit. The company's outlook for this year remains unchanged, despite continued volatility in markets where it operates.
     
     
    • Ryanair has posted a 55 percent increase in first quarter net profit, beating expectations. The results were boosted by stronger bookings during the Easter period. However, the Irish carrier expects fares to fall by up to 9 percent in the second quarter. Ryanair also says it could be forced to cancel flights from April 2019, if uncertainty around the Brexit talks continues.
    • Swiss private bank Julius Baer reported 6 percent AUM growth during the first half of 2017. The figure rose to 355 billion Swiss francs. That comes roughly in line with analyst forecasts. The group also saw adjusted net income making a greater jump than forecasters predicted.
       
  • The Stoxx 600 moves into negative territory, dragged lower by losses in the autos sector. This is due to news of a potential probe into German automakers following allegations of price collusion.
     
     
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