World Markets Live - July 25 - CNBC Live Events

CNBC Live Events

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.

  • Greece has claimed that its comeback to the bond markets has been an "absolute success".
    The country sold 3 billion euros worth of five-year paper at a yield of 4.625 percent. It is the first direct sale of Greek paper since 2014.
    The new bond matures in August 2022.
    Cash buying the bond is reportedly split between a switch from existing bonds and new money.
    A government official told Reuters that the sale "reaffirms the positive trajectory ofthe Greek economy which is making steady steps to exiting crisis and bailout programs."
  • Good morning and welcome to World Markets Live. Here are today's opening calls for European markets.
  • 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.
  • AkzoNobel reports Q2 revenue up 2 percent, driven by performance in coatings and speciality chemicals. Q2 EBIT was 461 million euros, down from 491 million euros. The company continues to expect EBIT for 2017 to be around 100 million euros higher than 2016.
  • Norsk Hydro reports Q2 earning per share of 0.73 Norwegian krona. Revenue was 24.59 billion krona. EBIT was 2.95 billion and net profit was 1.56 billion. The company says the global markets is largely balanced. It repeats its call that global demand for aluminium will grow 4 to 6 percent in 2017.
  • 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.
  • Luxottica's first-half operating profit came in ahead of expectations. The Italian eyewear maker adds that it's on track to hit its full-year targets.
    The firm says it expects regulators will approve its proposed merger with France's Essilor. Luxottica, which makes Ray-Ban sunglasses, reported sales growth roughly in line with estimates.
  • Randstad reports its Q2 results. The Dutch human resources company says Europe is gaining momentum.
    Q2 underlying EBITDA was 262 million euros. Its EBITDA margin was 4.5 percent. Revenue for the second quarter was 5.866 billion euros, with organic growth of 9.3 percent and gross profit up 7.9 percent. Adjusted net income rose 6 percent year on year to 181 million euros. 
    Revenue was expected at 5.83 billion euros.
    The company says there will be an adverse 1 working day impact in Q3.
  • 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 price fall and some of the factors for it, including compliance with the deal and the output of exempt countries Nigeria and Libya.
    Speaking at the meeting, Saudi Arabia's energy minister explained the negative sentiment in the oil market and some of the issues the group needs to address.
    Oil prices gained around 1 percent yesterday and are up this morning.
  • Intertrust has announced its preliminary Q2 results. The company's adjusted EBITDA margin guidance of around 39.9 percent for the full year is lowered to 37.5 to 38.5 percent. It expected an adjusted EBITDA margin of 35.3 percent for Q2.
    It expects Q2 revenue to fall 0.1 percent from a year ago to 1118.1 million euros. It anticipates lower than expected revenue performance in the Netherlands.
  • Eurotunnel reports first half EBITDA of 242 million euros up 8 percent. Revenue for H1 increased 3 percent to 497 million euros.
    The company keeps it 2017 and 2018 EBITDA and dividend targets. The company's CEO says its goal to transport 2 million trucks by 2020 could be delayed by one year. The company says it did not see any significant impact of Brexit on its business in 2017.
  • 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.
  • U.K. trade secretary Liam Fox says he wants Britain to ensure the stability of U.S. trade ties during its exit from the European Union. Speaking in Washington with U.S. trade representative Robert Lighthizer, Fox says predictable trade relations between the two countries can help businesses make future investment decisions.
    Fox met with a working group to discuss trade cooperation after Brexit, but Britain can't enter into new trade deals until it leaves the EU in 2019.
  • 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.

  • Arun Pillai-Essex, senior political risk analyst at Verisk Maplecroft, says Jared Kushner’s 11-page testimony gave more details around the four meetings with Russia officials.
    It’s given a bit more context but there’s no way the investigation is concluding or near concluding. He’s likely to testify before the House and with Bob Mueller’s investigation in the Justice Department. That’s likely to have questions for him as well.

    Arun says President Trump’s popularity polling is low, but among registered Republicans support is still around 80 percent. He says there is no political will to abandon the president, but on the issue of Russia there has been a strong bipartisan effort by politicians to separate themselves from the Trump administration.
    We just saw the sanctions bill pass the Senate and the House, which was quite strong, and which hamstrings the Trump administration’s ability to lift sanctions.
  • Shares in Volkswagen, BMW and Daimler closed lower for the second consecutive session, as investors reacted to 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. 
  • It's a big week for the auto industry on the earnings front, with Volkswagen and Daimler gearing up to report later this week.
    General Motors is due to publish its latest set of quarterly numbers later today.
    The company's CFO, Chuck Stevens, will join our colleagues stateside at 13:50 CET to discuss the earnings release. 
  • Germany is urging the EU to add four more Russian companies to its sanctions blacklist following the Siemens Crimea scandal - that's according to a Reuters report. 
    A Siemens employee working on a gas turbine.

    Siemens says it has evidence that four of its turbines, which it delivered to Russia, were illegally moved to Crimea. Russian Energy Minister Alexander Novak commented yesterday that the Siemens dispute wouldn't disrupt Russia's electricity supply. 
  • The Bank of England has warned of a "spiral of complacency" around mounting consumer debt. With growing personal loans outpacing income gains, executive director Alex Brazier said the BOE could force banks to hold more capital in a bid to safeguard against the dangers of soaring consumer borrowing.
    The fresh warning comes after the BOE introduced its three lines of defence to tackle the issue, including closer bank supervision and stress testing lenders.
  • Greece is returning to the bond market with the announcement of a new 5-year issue. The embattled economy, which is slowly emerging from a crippling debt crisis, has also invited holders of bonds maturing in 2019 to tender them for cash.
  • Domino's Pizza  announces it expects 90 new store openings in the U.K. this year and it intends to resume its share buy-back scheme. 
    The company says half year system sales came to £546.5 million versus $494.5 million the year before. The company says it is investing up to £4 million gross in H2 2017 to improve value for customers and strengthen national promotions. Half year like-for-like system sales of 2.4 percent and its recommended interim dividend increased 7.1 percent to 3.75 pence. 
    Half year underlying profit before tax was up 9.1 percent to £44.6 million.
  • 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.
  • A company called LedgerX has become the first to be federally approved to provide derivatives trading on digital currencies. The CFTC has announced that it would allow the firm to settle options on the likes of bitcoin and ethereum. The commission made it clear that the ruling does not imply endorsement of digital currencies or bitcoin specifically.
  • 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.
  • German June import prices fell 1.1 percent month on month, but were up 2.5 percent year on year. That compares to a month to month fall of 1 percent in May and year on year growth of 4.1 percent in May. That's according to the Stats Office.
    The import prices were below the Reuters forecast of a month to month fall of 0.7 percent and year on year growth of 2.9 percent.
  • 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.
    Meanwhile, Mark Zuckerberg has called out Elon Musk over his criticism of artificial intelligence. In a Facebook live, the social network's CEO said AI is going to improve our lives, and called doomsday scenarios "pretty irresponsible".

    Facebook CEO Mark Zuckerberg: Elon Musk's doomsday AI predictions are 'pretty irresponsible'

    The tech titan chatted with users around the globe from his backyard in Palo Alto, Calif.
  • The Dow and S&P closed lower yesterday for another session. The Nasdaq bucked the trend and closed at a record high thanks to tech earnings.
  • 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.
  • Lots of data is coming out today. Here's a list for the scheduled economic releases. All times  in BST.
    07:45 AM                   FR Business Confidence JUL
    07:45 AM                   FR PPI MoM JUN
    08:00 AM                   AT Industrial Production YoY MAY
    08:30 AM                   SE PPI MoM JUN
    09:00 AM                   DE IFO Business Climate JUL
    09:00 AM                   DE IFO Current Conditions JUL
    09:00 AM                   DE IFO Expectations JUL
    09:00 AM                   IT Industrial Orders MoM MAY
    09:00 AM                   IT Industrial Sales MoM MAY
    09:00 AM                   PL Unemployment Rate JUN
    10:30 AM                   BE Industrial Production MoM MAY
    11:00 AM                   GB CBI Business Optimism Index QoQ
    11:00 AM                   GB CBI Industrial Trends Orders JUL
    11:30 AM                   ZA Unemployed Persons Q2
    02:00 PM                   BE  Business Confidence
    02:30 PM                   NG Interest Rate Decision
  • SoftBank is seeking a multi-billion dollar stake in taxi app Uber, according to the Wall Street Journal citing sources.
    The Japanese tech giant has approached Uber with an offer, according to the report. SoftBank is already a big investor in three Asian ride-haling companies.
  • 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.
  • Covestro has reported a sharp increase in second quarter net profit, with EBITDA up 57 percent. This as the German plastics maker was able to charge higher prices for products like foam chemicals. The company also reiterated its full-year guidance
  • French June producer prices fell 0.4 percent month on month, but rose 1.4 percent year on year, according to INSEE.
    French July industrial confidence was unchanged at 109, slightly beating forecasts of 108. 
    July service sector confidence rose to 104 from 103 in June, while composite business confidence rose to 108 from a revised 107 in June.
  • The euro is up against the dollar today. The firmed French business confidence figures are providing some support to the common currency.
  • 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. 
  • The Stoxx 600 is open for trading, initially dragged into negative territory.
  • 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.
  • The Stoxx 600 is moving into positive territory. The individual European bourses are recording gains at the start of Tuesday trade.
  • Covestro has reported a sharp increase in second quarter net profit, with EBITDA up 57 percent. This as the German plastics maker was able to charge higher prices for products like foam chemicals. The company also reiterated its full-year guidance.
    Patrick Thomas, CEO of Covestro, says the first half is a record for the company in terms of EBITDA. He is pleased with the performance.
    He says the company has strong utilization rates and pricing has been a major driver of sales growth.
    Thomas says sales in Europe and the Middle East are up about 14 percent during H1, while Asia Pacific is up close to 40 percent.
    Enormous growth coming out of China and the rest of Asia Pacific, and the ASEAN region is beginning to kick in as well.
  • These are the stocks that are moving markets today.
    • Weak demand and high material costs have hit Akzo Nobel's second quarter earnings. The Dutch paint-maker, which is dealing with the fallout of a rejected takeover bid by PPG, reported a bigger than expected fall in operating profit. Akzo said it remained on course for better results this year, adding that the separation of its speciality chemicals division was on track. Akzo also said that chairman Antony Burgmans will resign at the end of his term in April 2018.
    • A strong European performance helped Randstad post a rise in second quarter profits. The world's second largest staffing agency also saw sales rise 14.8 percent, the highest level since 2011. Roughly in line with forecasts, the company said that their performance in early July indicates a continuation of the second quarter performance.
    • Logitech has raised its full-year outlook after posting a 13 percent rise in first quarter sales. The company's CEO said the Swiss technology manufacturer is selling more higher priced products than ever before. 
    • Swiss chocolate maker Lindt & Spruengli has reported first-half profit growth that missed analyst expectations. Lindt saw net profit rise 5.7 percent to almost 76 million Swiss francs, just under forecasts. The firm famous for its gold foil-wrapped chocolate Easter bunny also expects slower revenue growth on sluggish demand in North America.
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