World Markets Live - July 25 - CNBC Live Events
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World Markets Live - July 25

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

    These are the top news headlines this morning:
     
    • Alphabet beats earnings expectations, but the stock dips, as investors worry about rising costs taking a bite out of margins.
    • Oil shoots up as OPEC cracks the whip on production, with Saudi Arabia vowing to limit exports next month, and Nigeria joining the agreement to cap output.
    • Trump son-in-law Jared Kushner steps into the spotlight, telling Congress he didn't scheme with the Kremlin to influence the U.S. election.
    • Here we go again. A Bank of England official sounds the alarm on easy consumer credit, raising fears lax lending could set the stage for a household debt crisis.
    Dassault Systemes reports Q2 total revenue of 806.4 million euros, up 7 percent. Operating income was 169.4 million euros, versus 161.4 million a year ago.
    Alphabet shares slid in extended trade after the tech giant reported a steep drop in second-quarter profit, due to a $2.7 billion fine by the EU. 

    The company posted slightly-better-than expected earnings per share on higher revenue of 26 billion dollars. But that revenue came at a higher price as Google's 'cost-per-click' dropped 23 percent from a year ago -- a much bigger decline than analysts had forecast.
     
     
    The dollar index is holding above a 13-month low, boosted by the reading for U.S. factory and services activity yesterday. 
     
    The dollar and U.S. treasury yields also rose on expectations the Federal Reserve will signal its readiness to begin reducing its bond portfolio from September, according to Reuters.
     
    Later today, the Federal Open Market Committee will gather and begin a two-day meeting. A decision on interest rates is due tomorrow.
     
    Here''s a chart of the 13-month dollar index as of 07:21 a.m. BST.
     
     
    A mixed day for Asian markets overnight. Australia led the way, making strong gains thanks to the oil price recovery. However, the Japanese Nikkei and the Chinese and Hong Kong markets were flat.
     
     
    President Trump has pled with U.S. Senate Republicans to repeal and replace former President Barack Obama's health care law.
     
    Trump called on senators to "do the right thing" and overhaul the Affordable Care Act, which Republican lawmakers have promised to do for nearly seven years. The Senate is set to vote on whether to open debate on a healthcare overhaul this week.
     
    Meanwhile, Senator John McCain's office says he will return to Senate to vote on health care.
     

    Senator John McCain will return to Senate for health-care vote, his office says

    Sen. John McCain's office said Monday evening that the senator would return to the U.S. Senate on Tuesday.

    President Donald Trump's son-in-law Jared Kushner has denied claims that he colluded with Russian officials during last year's presidential campaign. The senior White House aide says documents he provided to a U.S. Senate panel will show he did not have any part in alleged Russian election meddling. Both Moscow and President Trump have also denied these allegations. NBC News' Kristen Welker reports.

    Virgin Money reports first half underlying profit before tax is up 26 percent to £128.6 million and a return on tangible equity rising to 13.3 percent.
     
    The U.K. lender's underlying net interest margin was 1.59 percent in H1. Gross mortgage lending came to £4.3 billion and net lending came to £2.1 billion. The bank's share of the gross mortgage market was 3.5 percent at the end of May. The company says it remains on track to sustain a solid double-digit return on tangible equity this year.
    These are the top news headlines this hour:
     
    • Alphabet beats earnings expectations, but the stock dips, as investors worry about rising costs taking a bite out of margins.
    • Oil shoots up as OPEC cracks the whip on production, with Saudi Arabia vowing to limit exports next month, and Nigeria joining the agreement to cap output.
    • Trump son-in-law Jared Kushner steps into the spotlight, telling Congress he didn't scheme with the Kremlin to influence the U.S. election.
    • A mixed bag of chemical numbers. AkzoNobel misses forecasts as it announces a new executive structure, while Covestro beats as higher prices boost earnings more than 50 percent. CNBC will speak to Covestro CEO Patrick Thomas at 09:05 CET.
    Jayne-Anne Gadhia, CEO of Virgin Money, says this is the bank's best first half results yet.
     
    She says she is confident in the economy going forwards and lending is strong.
     
    From our point of view, consumers are still very confident. The mortgage market is quite strong. And as a result of that we’ve done quite well. We’ve also been recognized as the U.K.’s most trusted bank and I think that’s quite important in this day and age.
     
    About 11 percent of its lending business is on new builds. They see a lot of positive momentum on mortgage lending.
     
     
     
    Oil prices found some support after leading OPEC producer Saudi Arabia said it would cap exports in August.
     
    OPEC and non-OPEC producers met in St. Petersburg to discuss the recent fall in crude, in an effort to boost compliance with the recent deal to limit production. They also agreed to bring in Nigeria, which was previously exempt from the agreement.
     
     
    Mouhammed Choukeir, chief investment officer at Kleinwort Benson, says oil prices have a life of their own.
     
    It’s controlled by the market essentially, buyers and sellers. And you can see since the beginning of the year OPEC has tried its best to keep that oil price going higher and higher and it has failed to do so for a number of reasons because sentiment around the oil price is their policies are going to fail.
     
    Choukeir says oil prices are acting contrary to what would be expected. Typically during an economic growth period, which is happening right now globally, oil prices should be doing well but it is down this year.
     
    It is behaving in a very atypical way. That’s largely because people are not convinced OPEC is going to be able to comply and shale producers are going to continue to produce.
     
     
     
    The major European markets are called to rise at the market open. This after the Stoxx 600 fell 0.24 percent in Monday's session.
     
     
    Michael Kors is to buy Jimmy Choo for 230 pence per share in cash for a total of $1.2 billion.
     
    The deal is expected to grow Jimmy Choo sales to $1 billion, according to Michael Kors.
     

    Michael Kors to buy luxury shoemaker Jimmy Choo for $1.2 billion

    CNBCMichael Kors has agreed to take over luxury retailer Jimmy Choo for 896 million pounds ($1.17 billion), it said on Tuesday.
     
    LG Display announces plans to invest 7.8 trillion won in a new South Korean production line which will make large, medium and small-sized OLED panels.
     
    The company reports Q2 revenue of 6.6 trillion won, under forecasts of 6.9 trillion. Q2 operating profit was 804 billion won, missing forecasts of 862 billion won. 
     
    Net profit of 736 billion won did beat expectations of 615 billion won. 
    Total U.K. grocery sales rose 3.9 percent in the 12 weeks to July 16, according to Kantar Worldpanel.
     
    Grocery inflation during the period increased 3.2 percent.
    On the topic of Brexit, Patrick Thomas, CEO of Covestro, says to watch how negotiations progress.
     
    I think anything that destroys free trade between industry and Europe is a bad idea, and I think people are now realizing the importance of free trade.
     
    A typical automotive company that we deal with in the U.K. and in Europe will move components backwards and forwards many times, six or seven times, during the manufacturing of a system for assembly for a car. Therefore, if you were to have cross border taxation at every step it just wouldn’t work, it just doesn’t figure.
     
    He says  the company has no exposure to the pound and the region is just 2 percent of business, but as a Brit living in Germany he is worried about Brexit.
    Half an hour into European trade and the Stoxx 600 is up about 0.3 percent, led by the basic resources and media sectors.
     
    These are the stocks at the top and bottom of the index.
     
    Here are the top headlines following the European market open:
     
    • European banks see a boost in early trade, following a strong session stateside, leading European equities slightly higher.
    • Well staffed! Randstad shares rise as the Dutch staffing agency reports strong European performance, with double digit sales growth in the second quarter. 
    • AkzoNobel shares slide as the company's second quarter numbers miss expectations and it outlines a new executive structure amid pressure from activist shareholders. 
    • Covestro beats as higher prices boost earnings more than 50 percent. The company's CEO tells CNBC he sees the auto sector driving growth. 
       
    There is lots of M&A news today:
     
    • Facebook has acquired Source-3, a content rights management startup. Source3 builds technology to detect intellectual property that has been shared online without permission. The New York-based company announced the acquisition on its website, but neither Source3 or Facebook have disclosed terms of the deal.
    • Softbank is reportedly seeking a multi-billion dollar stake in Uber. According to the Wall Street Journal, the Japanese giant has approached the ride-hailing app. SoftBank already has a stake in three Asia based companies with similar business models, including China's Didi Chuxing.
    • U.S. fashion firm Michael Kors has agreed the terms for its acquisition of luxury shoe brand Jimmy Choo. The deal values Jimmy Choo's share capital at around £900 million. Jimmy Choo has struggled since going public, with its profit and sales figures repeatedly falling short of analysts' expectations. Shares in Jimmy Choo have spiked on the news.
     
     
    Here are your top headlines for the next hour:
     
    • European banks see a boost in early trade, following a strong session Stateside, leading European equities slightly higher.
    • Well staffed! Randstad shares rise as the Dutch staffing agency reports strong European performance, with double digit sales growth in the second quarter.
    • AkzoNobel shares slide as the company's second quarter numbers miss expectations and it outlines a new executive structure amid pressure from activist shareholders.
    • Covestro beats as higher prices boost earnings more than 50 percent. The company's CEO tells CNBC he sees the auto sector driving growth.
    The euro spiked against the dollar following IFO data that German business confidence rose to a fresh record high in July. The IFO business climate index rises to 116.0 in July versus consensus of 114.9 points.
     
    The IFO says sentiment among German businesses is "euphoric". They say the euro forex rate is no impediment to Germany's economy, as business is going well enough to offset the FX rate.
     
    The IFO says it is not worried about the impact of Brexit on the German economy, nor do they see an impact from Trump on Germany. They say nothing appears to knock the German economy off course at the moment.
     
    In manufacturing the index hit a new record high. Assessments of the current business situation scaled unprecedented heights. Manufacturers once again expressed greater optimism about the short-term future. Capacity utilisation rose significantly by 0.7 percentage points to 86.7 percent.
     
    The Brandenburg gate in Berlin
    Shares in Volkswagen, BMW and Daimler have recovered slightly, but remain under pressure from allegations that the automakers had operated a wide-ranging cartel.  
     
     
    A VW spokesperson confirmed to CNBC that it will hold an extraordinary supervisory board meeting on Wednesday, following the launch of an EU probe into alleged price-fixing. The investigation by European Union regulators will focus on whether carmakers used German industry committees to discuss pricing, and whether such talks breached competition rules.
     
    Arndt Ellinghorst, head of the global automotive research at Evercore ISI, says this won’t be as wide-ranging or as punitive as some are making out.
     
    The authorities have been looking into this for years. Daimler says it has been cooperating since 2011. Volkswagen stopped some of their practices in 2016, they reported themselves to the German and European authorities in the middle of 2016. 
     
    So I understand that if you’re a whistle-blower you’ve got to cooperate with the authorities and silence is agreed, but I would say if there was a significant threat to earnings, they would have had to have said something.
     
     
     
    President Donald Trump's son-in-law Jared Kushner has denied claims that he colluded with Russian officials during last year's presidential campaign.
     
    The senior White House aide says documents he provided to a U.S. Senate panel will show he did not have any part in alleged Russian election meddling. Both Moscow and President Trump have also denied these allegations.
     

    Jared Kushner: I did not collude with Russia, my actions were 'proper'

    Jared Kushner firmly denied collusion with Russia and said that his actions while serving on his father-in-law's campaign were "proper."
     
    Revenue growth has not come cheap for Alphabet. Shares slid in after-hours trade after Google saw its cost-per-click' drop 23 percent from a year ago -- a much bigger decline than analysts had forecast.

    Felix Wintle, fund manager at Tyndall Investment Management, says the record EU fine of $2.7 billion won’t affect the on-going business.
     
    The fine gets a lot of attention; it’s a huge number. But when you’re Google it’s not such a big number. It’s a one-off item in my view that affected the quarter a bit.
     
     
     
    Finnish steel producer Outokumpu reports Q2 net sales of 1.66 billion euros, less than the 1.73 billion forecast by Reuters. Underlying EBITDA also missed forecasts, totalling 145 million euros, less than the 147 million expected.
    U.K. manufacturing order book balance slips to +10 in July from +16 in June. It was forecast to hit +11, according to CBI data.
     
    The export order book balance is +2 in July from +13 in June, its weaker since February.
     
    Output expectations balance is +28 in July, rising from +27 in June. 

    Quarterly new order balance was +14 in July from +25 in April, its weakest since October 2016.
     
    Quarterly output volume balance was +31 in July versus +22 in April, its highest since January 1995 and employment growth is at its strongest in 3 year.
    Sterling pares gains against the dollar and slips into negative territory on the release of disappointing U.K. industrial data. 
     
     
    Unity Bancorp reports Q2 earnings per share of 32 cents on net profit of $3.4 million. The company says net interest income increased $1.8 million to $11.2 million the quarter ending June 30.
     
    The lender expects continued improvement in its net interest margin due to rising rates.
    Copper prices are at a 5 month high today.
     
    The uptrend is seen as a function of solid demand from China and the lower dollar value that the commodity is typically priced in.
     
    Copper futures contracts on the London exchange were up 2.22 percent in Tuesday morning trade at 11.25 a.m.
     
     
    A research report from Citi suggested copper hungry manufacturers in China had recently restored inventories.
     
    The note suggested more inventory clearing needs to happen before Chinese firms seek imports.
     
     
    Europe's banks have reached a session high.
     
     
    United Technologies has reported second quarter sales of $15.3 billion with a continued operations earning per share of $1.80.
     
    The company now anticipates full year EPS of $6.45 - $6.60  and sales to sit between $58.5 and 59.5 billion.
     
    The company's share price has risen almost 6 percent in the last three months  and is around a third of a percent lower in pre-market trade.
     
     
    The European markets are  higher on Tuesday morning as investors monitored earnings and awaited the start of a two-day policy meeting of the Federal Reserve.
     
    Strength among commodity firms and banking stocks supported European shares during mid-morning deals while earnings season also remained front and center for investors.
     
     
    On the data front, German business confidence unexpectedly rose in July, hitting fresh record highs for the third consecutive month. The Munich based Ifo economic institute said its business climate index rose to 116.0, up from 115.2 in June.
     
    "Euphoric"

    Sentiment among German business is euphoric ... Companies' satisfaction with their current business situation reached its highest level since Germany's reunification. 
     
    - Ifo Chief Clemens Fuest
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