World Markets Live - July 24 - CNBC Live Events

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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.

  • Germany's July flash composite PMI fell to 55.1, lower than forecast and dropping from June's 56.4 
    Both manufacturing and services disappointed. Manufacturing PMI missed estimates falling to 58.3 from June's reading of 59.6.
    Services fell to 53.5 from 54.0 in June, also missing estimates.
    The euro is dropping against the dollar on disappointment over French and German PMI results.
  • Here are the top headlines following the opening of European markets.
    • Shares of German carmakers hits lows not seen since the end of last year, as EU regulators investigate allegations of a secret cartel among Volkswagen, BMW and Daimler.
    • Ryanair posts a soaring 55 percent rise in first quarter profit, but the low-cost carrier warns summer fares could fall as much as 7 to 9 percent, sending the shares lower.
    • More M&A in the supermarket space, as shares in B&M rise on a report Asda could be eyeing a 4-point-4 billion pound bid for the discount retailer.
    • Assets under management at Julius Baer rise 6 percent in the first half, the best performance since 2008, sending shares of the Swiss bank to the top of the Stoxx 600.
  • Ryanair shares are trading lower after it warned that average fares are likely to fall sharply in the coming months. The low cost carrier also posted full year profit guidance which fell short of analysts' exectations. 
    On a brighter note, Ryanair's first quarter profit-after-tax rose 55 percent year-on-year to 397 million euros.  
    Daniel Roeska, senior analyst European transportation at AllianceBernstein, says the share price fall is due to market expectations.
    All airline stocks are basically only trading on unit revenues. The Ryanair numbers were great, they really progressed, however they did have a decline in unit revenues if you look at it year on year.
    For the past 12 months their unit fare has dropped 10 percent. This is mostly due to large capacity growth.
  • Biosearch reports first half profit before tax of 500,000 euros. The company reports EBITDA is down 6.5 percent to 1.6 million euros versus a year ago.
    Net sales during H1 was 11.3 million euros versus 10.9 million euros a year ago.
  • Oil prices are falling ahead of today's meeting of OPEC and non-OPEC producers in Russia.
    Kuwait says compliance with production cuts is over 90 percent for both OPEC and non-OPEC producers.
    Meanwhile, Saudi Arabia's energy minister Khalid al-Falih says there will be no discussion of deeper cuts today, according to Reuters. Falih says a production output cap for Nigeria and Libya will be discussed.
    Meanwhile, oil import data from China revealed Russia was the top crude oil supplier to China for the fourth month in a row. In June, Russia exported 1.27 million barrels per day to China.
  • Ben Rogoff, fund manager at Polar Capital, explains why he is excited about the opportunity presented by robotics.
    Amazingly, 90 percent (of machines in the world) are not connected to each other or the internet.
    We’re released excited about this opportunity, because we saw what happened to the PC market when the internet came along and enabled these devices to become intelligent. There’s this thing caused industry 4.0, the fourth industrial revolution, and it’s the idea that we’re going to have a combination of cyber and physical systems that make factories very smart.
  • IHS Markit reports eurozone July flash composite PMI is 55.8, down from June's 56.3 and below expectations.
    The output prices index was 51.7, a six-month low.
    The manufacturing PMI dropped to 56.8 from 57.4 in June. Services PMI was 55.4, matching June's reading but below expectations.
  • The euro remains weaker, falling against the dollar due to PMI data coming below expectations.
  • Speaking ahead of an OPEC meeting in St. Petersburg, Saudi Arabia's energy minister Khalid al-Falih says global oil demand growth shall be 1.5 million barrels per day in 2017. He says OECD stocks are down 90 million barrels in recent months and it is only a matter of time before inventories return to the 5-year average. That's according to Reuters.
    He says markets have returned to a bearish mood due to weaker compliance with production cuts. He adds that rising oil exports are a matter of concern for the markets. Also, he says demand growth in 2018 should more than offset U.S. oil output growth.
  • These are the main headlines for the hour:
    • Shares of German carmakers hits lows not seen since the end of last year, as EU regulators investigate allegations of a secret cartel among Volkswagen, BMW and Daimler.
    • Ryanair posts a soaring 55 percent rise in first quarter profit, but the low-cost carrier warns summer fares could fall as much as 7 to 9 percent, sending the shares lower.
    • Assets under management at Julius Baer rise 6 percent in the first half, the  best performance since 2008, sending shares of the Swiss bank to the top of the Stoxx 600.
    • More M&A in the supermarket space, as shares in B&M rise on a report Asda could be eyeing a 4-point-4 billion pound bid for the discount retailer.
  • German 10-year bund yields fell as low as 0.494 percent, its lowest level in just over a week according to Reuters, after eurozone July flash PMIs dipped below expectations.
  • Taiwan's industrial output increased 3.14 percent year on year in June. The unemployment rate rose slightly to 3.74 percent in June from 3.66 percent in May.
    Taiwan also revealed M2 money supply in June increased 3.71 percent year on year. 
  • Growth in Japan's manufacturing activity slowed to an 8-month low, preliminary figures show. Flash PMI dipped to 52-point-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 yen was strengthened by the results, rising against the euro, dollar and sterling.
  • Kuwait's oil minister Essam Al Marzouq says some OPEC members should not be complacent in following agreed production cuts. He earlier said the compliance rate by oil producers was over 90 percent in June. He says the compliance rate is unprecedented in OPEC's history.
    The minister says the boost in demand in the second half of 2017 will contribute to reducing the oil stocks overhang.
    Crude oil prices are down around 20 cents today.
  • Maurits Heldring, senior equity research expert at ABN AMRO Private Bank, says there is not a lot of good news for the autos industry in Europe.
    The good news in Europe is that the car market itself is growing well. Europeans continue to buy cars. However the German producers are faced with a lot of issues: obviously Volkswagen with the diesel cheating scandal which may also be true for some of the other players.
    Daimler is also suspected of having devices so there are still investigations. And of course, the news of last Friday that there could be cartel elements in the German car production industry. That altogether is bad news.
    Heldring says if the cartel accusations are proven true the automakers will be heavily fined. This bad news will set back innovations such as self-driving cars.
  • Russia calls for limits on Libyan and Nigerian oil production in the near future, as Energy Minister Alexander Novak prepares to host OPEC and non-OPEC Ministers in St Petersburg.
    Oil is trading lower after the Saudi Arabian Energy Minister Khalid Al-Falih told reporters that there will be no discussion of deeper output cuts at this week's meeting. The focus is instead expected to be on Libya and Nigeria, both of which are under pressure to cap their oil output once their production levels stabilise. 
    Amrita Sen, chief oil analyst at Energy Aspects, says this is in line with expectations.
    The OPEC ministers have been quite consistent in saying they will not consider deeper cuts until they’ve seen what the summer stock draws look like. So it’s not that they’re ruling out cuts, just today they are not going to be discussing it.
    I don’t think you’ll see any discussion on it until at least the end of August or early September.
    Sen says stock draws have accelerated in recent weeks.
    On the topic of Libya and Nigeria, she says it will be hard to cap Libya’s production but Nigeria might be more cooperative.
  • 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.
    Jeffries Briginshaw, the CEO of BritishAmerican Business, says competence is needed for trade deals as there are lots of uncertainties.
    He says Liam Fox’s trip is for "talks about talks" intended to encourage towards technical developments down the line.
    We see them as encouragements towards a deeper economic relationship with the U.S. which is a good thing, but really just talk at the moment.
  • Barry Gardiner, the shadow secretary of state for international trade, says the important thing about going into a negotiation is to know what you want to get out of it at the other end. He has called for a white paper on trade. 
    He says the U.K.’s trade policy needs to line up with the country’s industrial strategy.
    They haven’t done that, but I welcome the fact Liam Fox has gone to America. I welcome the fact we’re beginning these discussions. We need to have a very good strong trading relationship with the U.S. Indeed we already have, it is our single largest bilateral trading partner after the European Union and it’s important we develop that further because the likelihood is that our trade with the EU will decline slightly after Brexit.
  • Germany's federal cartel office says probing the alleged collusion by German car makers is a decision for the European Commission to make.
  • HSBC has announced its predictions for what the Brazilian central bank will do. The bank expects Brazil to cut interest rates by an additional 100 basis points this year due to falling inflation. The bank predicts rates will fall to 7.5 percent by the end of the year, versus their previous forecase of 8.5 percent.
  • Philippines' President Duterte says the war on drugs will not stop, despite international pressure and criticism, according to Reuters.
    Duterte says he wants to put a stop to mineral extraction and exportation. He wants mining companies to stop destroying the environment and adds that he will hold the mining industry responsible for repairing, restoring and cleaning up the damaged areas.
  • Shares in the top three German carmakers dropped sharply on Monday after it was reported that EU antitrust officials had started investigating a possible breach of regulatory standards.
  • Fitch has published its overview of emerging European sovereign credit. The ratings agency says Russia's recovery is continuing to gain traction. It adds that the ramp-up of disbursements in EU funds and the strengthening of key western European trade partners are bolstering growth in central and eastern Europe.
  • The European Stoxx 600 is being dragged down by the autos sector and falling German carmaker stocks. 
    Looking ahead to the U.S. markets and the major stock indexes are expected to open lower according to future values. The Dow is called to lose 37 points, the Nasdaq is called 10 points down and the S&P looks set to lose almost 3 points.
    U.S. markets finished Friday's session in  negative territory, with both the S&P and Nasdaq down 0.04 percent and the Dow lower by 0.15 percent.
  • Eurozone flash PMI readings for July came in today, generally weaker than expected. The composite PMI disappointed by declining to 55.8 points.
    Manufacturing confidence retreated, according to Barclays' analyst Apolline Menut.
    Within composite PMIs, new orders and output expectations dropped, easing operating capacity pressures (backlog of works were at the lowest level since February 2017). The composite fall was driven by the manufacturing sector (output down 1.8 points to 56.9), and in particular by moderation in Germany, while services sentiment remained stable at 55.4. But both sectors recorded weaker forward-looking components, suggesting that confidence should moderate further from the multi-year high levels recorded earlier in the year.
    We think this is consistent with our view that growth will slow a little to 0.4 percent q/q in Q3, after 0.6 percent q/q in Q1 and 0.5 percent q/q in Q2.
    Menut added that Barclays expected confidence to improve in the peripheries, such as Italy, Spain and Ireland. This will be driven by a rebound in services, while manufacturing sentiment should be broadly unchanged.
  • What else can you expect to come today?
    • The OPEC  meeting will kick-off in St. Petersburg today. Announcements and sound-bites from energy ministers through the day will likely affect oil prices.
    • U.K. and U.K. negotiations for a post-Brexit trade deal will begin today. 
    • Jared Kushner to testify in the Senate Intelligence committee in a closed session to answer questions of alleged connections to Russia.
    Economic data
    The flash reading for July's U.S.  manufacturing PMI is released at 9:45 a.m. ET. The previous reading for June was 52 points.
    At 10 a.m. ET, June existing home sales data is released. The consensus view is 5.56 million, down from May's 5.62 million sales.

    A very busy week in U.S. earnings begins today. This is the heaviest week of the earnings season. Highlights today include Arconic, Hasbro and Luxottica reporting before the bell. Google's parent Alphabet will report after the bell.
  • Volkswagen has announced it will hold an extraordinary supervisory board meeting on Wednesday to deal with the current situation. 
    The German carmaker, Volkswagen Group subsidiaries Audi and Porsche, and BMW have been accused of cartel behaviour.
    Shares in Volkswagen have fallen sharply on the accusations of price fixing.
  • The UAE energy minister says global oil demand is expected to rise in the second half of 2017. That's according to Reuters citing Sky News Arabia TV.
    Minister Suhail Mohammed Faraj Al Mazroui says it is too early to talk about an additional cut in oil output. He says any increase in shale oil output in the short term would hurt the oil market.
    Mazroui in 2016
    Oil prices have recovered from earlier losses and are now trading in positive territory.
  • Germany proposed adding three or four Russian nationals and entities to the EU Crimea sanctions blacklist after Siemens alleged its gas turbines were illegally moved from Russia  to Crimea. That's according to Reuters citing diplomatic sources.
    Reuters adds that EU states may discuss on Wednesday adding more Russia sanctions over the Siemens issue.
    This as 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.
    A senior Russian lawmaker says the proposed new U.S. sanctions are an attempt to squeeze Russia out of the EU energy market, according to TASS.
  • Nigeria has voluntarily agreed to limit its oil output at 1.8 million barrels a day when it reaches this level. That's according to Reuters citing the Oman and Kuwait oil minister.
    Oil prices are ticking higher on the news. This snapshot of Brent September contract taken at 11:12 a.m. London time.
    Six OPEC and non-OPEC ministers are in St Petersburg today to discuss the market outlook and compliance with output cuts. 
    A cap on Libyan supply has also been set at 1.25 million barrel per day by December but OPEC Secretary general Barkindo said it remains a challenging target. 
    The Saudi energy minister has told reporters at the meeting that the key goal is to drive down inventories to a 5-year average. He said Saudi is leading by example on supply cuts and is "forcefully" demanding conformity to the agreement.
    The Russian energy minister has also spoken on the sidelines. Alexander Novak has said that current compliance with output cuts sits at 98 percent.
  • Trump's son-in-law Jared Kushner says he did not collude with any foreign government. He says he had no "improper contacts".
    He has provided details on his meeting with Russians during the campaign and transition. He says he did not suggest a secret back channel with Russia and says he does not recall a phone call with the Russian ambassador Kislyak.
  • French bank BNP Paribas has reportedly predicted the U.S. Federal Reserve will no longer raise rates in 2017 and will also trim its path in 2018.
    The current fed funds interest rate is 1.25% and the probability that this will increase in December by 25 basis points has fallen to around 43 percent. This according to the CME FedWatch Tool.
  • Housing starts fell 19 percent in the first quarter and property sentiment is at the lowest since the great financial crisis. So is the dream finally over for Australian property owners?
    Read more here.
  • Swiss bank UBS has downgraded the stock of U.S. investment bank Goldman Sachs.
    Goldman shares dipped last week as second quarter earnings, and more specifically the outlook, failed to impress.
    UBS said the downgrade to neutral reflected a lack of confidence that Goldman can effect a strong pick up its sluggish trading activity.
    We are downgrading GS shares to neutral as the market seems to be pricing an inflection in their FICC revenues despite the recent weakness, suggesting a recovery is needed to justify 2018 consensus.
    UBS highlighted its buy-rating on Morgan Stanley as potentially a better option for investors.
  • WebMD is to be bought by KKR for $66.50 a share in cash.
    That values the online health news firm at approximately $2.8 billion. The buyer, KKR & Co, is a private equity firm.
    Shares in WebMD have risen about 18 percent in pre-market trade. That will build on the back of a year-to-date performance up until Friday which saw the stock rise 11.3 percent.
    WebMD also provided second quarter earnings figures showing revenue of $176 million with net income expected at about $18.9 million.
  • The U.S. toy and board game company, Hasbro, has seen its pre-market share price fall steeply.
    The 93-year-old firm, which holds brands such as Playskool and Tonka, saw adjusted second quarter earnings per share come in at 53 cents, beating forecasts.
    Sales topped out for the quarter at  $972.5 million.
    The pre-market stock price as at 12:30 p.m. London time is down 6 percent.
  • European shares have been depressed by the strength of the euro this morning.
    Exporters in the trading bloc are struggling against the currency's recent rise in value, laid bare in a number of second quarter earnings reports.
    The euro is at around 2-year highs versus the dollar but has actually fallen today as weaker than expected German business activity hit newswires.
    This a picture of the last 7 days of euro/dollar trade:
  • The next FOMC meeting starts tomorrow and ends Wednesday with a statement.
    An announcement on balance sheet reduction could well be made but there is some suggestion this might actually be dollar negative as traders view the move as a dovish alternative to any rate reduction.
    One beneficiary over the Fed's rhetoric may be gold as it typically moves inversely to the dollar.
    Gold has been rising of late as political uncertainty in the United States rises over unanswered questions surrounding the current administration's connections with Russia. 
  • Arconic reports Q2 results of adjusted earnings per share of 32 cents, excluding items. This beat forecasts of 26 cents per share.
    Net profit at the metals, engineering and manufacturing firm was $212 million on sales of $3.26 billion. Revenue rose 1 percent and beat estimates.
  • Just a few minutes out from the open of US equity trade and the main market movers are probably among this bunch:

    Early movers: WBMD, KKR, HAS, CALM, HAL, VFC, CAT & more

    CNBCSome of the names on the move ahead of the open.
  • Stocks in the U.S. have opened flat as predicted by the Futures market. 

    The Dow Jones industrial average fell just 10 points with Goldman Sachs contributing the most losses. The S&P 500 traded just below breakeven, with industrials leading decliners. The Nasdaq composite also traded around the flatline.

    Approximately 180 S&P 500 components are scheduled to report this week, including tech giants Facebook, Amazon and Google-parent Alphabet.
  • The parent of the terminally ill child Charlie Gard have abandoned any efforts to take him to the United States for further treatment.
    The mother of the infant has suggested that he coudl have lived a normal life if treatment had been sought earlier.
    More on that story here: 

    Parents of UK baby Charlie Gard end legal battle over treatment

    CNBCThe parents of Charlie Gard have ended their legal battle to give the terminally ill British baby further treatment, a lawyer representing the parents said on Monday.
  • Existing home sales in the United States for June fell 1.8 percent from May. The sales were up 0.7 percent when compared with a year earlier.
    The median price for a U.S. home in June sits at $263,800, a 6.45 percent rise from the same month a year earlier.
    That figure is an all time high and marks the 64th straight month of year-on-year rises.
    A PulteGroup housing development in San Jose, California.
    • Saudi Arabia says its exports falling
    • Riyadh says some in OPEC lag over compliance
    • No curbs planned for Libya

    OPEC moves to cap Nigerian oil output, boost compliance

    CNBCOPEC moved on Monday to cap Nigerian oil output and called on several members to boost compliance with production cuts to help clear excessive global stocks and support flagging prices.
  •  The main movers on the Dow Jones Industrial Average index.
  • And here are the best and worst on the S&P 500 after an hour's trade.
    A brutal day for toy maker Hasbro. 
  • My question is do you have to charge yourself before you can pardon yourself? 

    President Trump is considering pardoning himself. 15 experts weigh in on whether that’s legal

    CNBCTrump could make a plausible legal argument that his pardoning powers extend to himself, Vox reports.
  • European markets offering a mixed picture as they stomp towards their close of business.
    Auto stocks were under pressure after reports that the EU is investigating alleged collusion between German car-makers on technology.
    New data from France and Germany suggest a slight slowdown in euro zone economic activity.
  • Time to take to the skies?
    Boeing is predicting that the airline industry will need more than 1.2 million pilots and technicians over the next 20 years. 
    The U.S. firm break sit down into 637,000 new commercial airline pilots and 648,000 technicians.
    It also highlights a need for 839,000 cabin crew members. 
    The press release is here
  • The Global Chief Investment Strategist for BlackRock has announced that the firm is overweight Japanese equities.
    Richard Turnill says the investment is currency hedged in the case of non-Japanese investors.
    European markets have closed for the day with only French stocks keeping their head above water among the major indexes.
    Tomorrow we'll see European earnings from Logitech, Randstad, AkzoNobel, Norsk Hydro and Virgin Money among others.
    In the United States, we have 3M, Caterpillar, DuPont, Eli Lilly, GM, McDonald's, AT&T, Chipotle, and US Steel.
    On the data front we'll have German IFO, and in the UK Nielsen publishes latest supermarket share figures.
    Be sure to join World Markets Live from 06:00 BST for all the latest live blog, CNBC, business news, real time events, views and gossip.
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