World Markets Live - July 26 - CNBC Live Events
×

CNBC Live Events

World Markets Live - July 26

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 today's top headlines:
     
    • Return to battle. Senate Republicans vote to reignite debate on ending Obamacare, as Senator John McCain dramatically reappears, rising from the operating table with a stinging critique of lawmakers.
    • Congress votes to sanction Russia in a move that shows anger on Capitol Hill over alleged Russian election interference. This as President Trump unleashes a new attack on his attorney general.
    • U.S. financial stocks see their best day in weeks, as investors watch to see what the Fed has to say about shrinking its balance sheet.
    • Don't fill it up. Plug it in. Britain is reportedly set to end the sale of petrol and diesel-powered cars from 2040.
     
    Here are the opening calls for European markets.
     
     
    A plan by Senate Republicans to repeal and replace Obamacare has failed to gain enough votes. 43 voted in favour of the motion with 57 against. Among those refusing to back the measure were 9 Republicans.
     
    The vote is expected to be the first of many this week, after the Senate narrowly agreed to open debate on a bill to end the Democrats' signature healthcare law. 
     
    Senate Majority Leader Mitch McConnell, centre, with Senators John Barrasso, left, and John Cornyn 
    Syngenta reports H1 sales of $6.9 billion, 2 percent lower compared to H1 2016. First half EBITDA was $1.7 billion, with a profit margin of 24.2 percent, down from 24.9 percent in 2016.
    The latest U.S. Federal reserve decision is due at 20:00 CET (central European time). While investors don't expect a change in policy, they will be keeping a close eye on what the central bank says about inflation and the unwinding of its $4.5 trillion balance sheet.
     
    Iain Stealey, bond portfolio manager at JP Morgan Asset Management, says we’ll get nothing dramatic from the Fed today.
     
    The things people will be looking for is firstly growth, which is on an upswing from a weakfish first quarter, second quarter is looking a little better. Jobs obviously looking a lot better than even the Fed was thinking before the end of the year. And then of course it’s all about inflation and the fact we’ve had four months of effectively weaker inflation than expected and we’ve moved away from the Fed’s targets. 
     
     
    Jim Cramer will be speaking exclusively with Citi CEO Michael Corbat tonight, that's on Mad Money at 6 pm eastern time. That's midnight central European time.
     
     
    The U.K. is banning the sale of all petrol and diesel cars by 2040. British environment secretary Michael Gove is due to launch the plan later today as the government aims to control air pollution. 

    This follows a similar move by France earlier this month and it effectively implies all new cars sold in the country will be electric within a quarter of a century.
     
     
    The health care vote was marked by the return of Senator John McCain, who was recently diagnosed with brain cancer and has been recovering from surgery. The political heavyweight criticised his fellow lawmakers for their failure to move ahead with key legislation.
     
    We keep trying to find a way to win without help from across the aisle. That's an approach that's been employed by both sides, mandating legislation from the top down, without any support from the other side, with all the parliamentary manoeuvres that requires. We're getting nothing done my friends, we're getting nothing done.
     
     
     
    Tullow Oil reports an H1 net loss of $308.6 million. Its operating loss was $394.9 million. 
     
    Loss before tax was $519 million, versus profit before tax of $24 million the year before.
    Five years ago today, Mario Draghi said the ECB was ready to do "whatever it takes" to preserve the euro. Let's take a look at what he's done since.
     
     
    • In June 2014, the European Central Bank cut interest rates below zero to stimulate the economy.
    • Two months later, Draghi hinted at a policy shift, during the Fed's Jackson Hole gathering.
    • After the inflation rate fell below zero for the first time since the financial crisis, the ECB announced the beginning of quantitative easing. That was January 2015.
    • The programme extended to corporate bonds the following March.
    • But is the end of QE now approaching? After Draghi's somewhat hawkish speech in Sintra this year, the euro hit a 12 month high against the dollar.
    • Markets interpreted his words as a sign that QE is coming to an end. Draghi could reveal more about his intentions in a second speech at Jackson Hole next month.
    Metro Bank posts a pretax profit of £6 million in the first half of 2017. Net loans by the end of June was £7.8 billion and total deposits jumped 49 percent to £9.8 billion.
    Bankia reports H1 net profit of 514 million euros versus 481 million euros a year ago. Net interest income was 995 million euros, down from 1.12 billion euros a year ago. Q2 net profit was 210 million euros.
    McDonalds stock hit an all-time high, after the world's largest fast-food chain posted a stronger-than-expected set of second-quarter earnings.  The company reported its biggest jump in global sales at established restaurants in over five years, attributing the growth to its new set of menu options.
     
     
    McDonalds has recently started selling 'craft' sandwiches, and has expanded its coffee offering, as it seeks to keep up with changing consumer tastes.
    The major European markets are set to open slightly lower, according to future values.
     
     
    UniCredit says it has suffered an IT attack resulting in unauthorised access to its Italian clients' data.
     
    The Italian lender says the data related to personal loans and affected 400,000 clients. It says no passwords were acquired but IBAN codes could have been accessed.
     
    UniCredit says first accesses took place in September/October 2016 and a second attack occurred in June/July this year.
     
    It has informed relevant authorities and has taken action to prevent similar attacks in the future.
    It’s time to hold cash.
     
    That’s according to Charles Newsome, divisional director at Investec Wealth, who is recommending clients increase their cash holdings in their portfolios a little bit.
     
    It is increasing difficult to find value across the market in equities and having a bit of cash as an option against a market correction must be a good idea. So moving towards 5 to 10 percent cash and if people want to be more aggressive 20 percent.
     
     
     
    Facebook is due report second quarter earnings after the bell. Analysts expect EPS of $1.13 on revenue of $9.2 billion. That would be a sign that revenue growth is slowing --  a slowdown that Facebook has been warning about for the past year as ad loads top out.

    The stock hit an all-time high on Monday, and has risen 43 percent this year, outperforming the S&P 500 Tech sector.
     
    CNBC's Arjun Kharpal says Facebook’s monthly active user number is key. It is nearly 2 billion.

    He says Facebook’s other products, such as Instagram, will become more important as the ad load begins to become saturated.
    When you look at the rival product to Snapchat, which is Instagram Stories, that now has more users than Snapchat, which is a good sign for Facebook because it means the Snapchat threat is more or less gone.
    Swiss investor sentiment hits 34.7 points in July. That's the best reading in more than three years according to Reuters.
    Five years ago today, Mario Draghi said the ECB was ready to do "whatever it takes" to preserve the euro. What has he done since?
     
     
    • In June 2014, the European Central Bank cut interest rates below zero to stimulate the economy. 
    • Two months later, Draghi hinted at a policy shift, during the Fed's Jackson Hole gathering. 
    • After the inflation rate fell below zero for the first time since the financial crisis, the ECB announced the beginning of quantitative easing. That was January 2015.
    • The programme extended to corporate bonds the following March. 


    But is the end of QE now approaching? After Draghi's somewhat hawkish speech in Sintra this year, the euro hit a 12 month high against the dollar.  Markets interpreted his words as a sign that QE is coming to an end. Draghi could reveal more about his intentions in a second speech at Jackson Hole next month.

    Over five years, the euro is down 4 percent against the dollar.

     
    The future of Jeff Sessions appears to be on the line after President Trump said "time will tell" when asked about the future of the US attorney general.
     
    Speaking at a news conference with the Lebanese Prime Minister, Trump once again voiced his frustration that Sessions had recused himself from a federal investigation into possible collusion between his presidential campaign and Russia.
     
    I am disappointed in the Attorney General, he should not have recused himself almost immediately after he took office and If was going to recuse himself, he should have told me before taking office and I would have quite simply picked somebody else. 
     
    Jeff Sessions
    Shares in Barnes and Noble rose nearly 17 percent yesterday after activist investor Sandell Asset Management acquired a stake in the bookstore chain and called on the company to sell itself. 
     
     
    In a letter to the retailer's board, Sandell said it was shocked by Barnes and Noble's under-valuation in the stock market, adding it could attract interest from online companies looking for a retail presence. A spokesman for Barnes and Noble told CNBC that Sandell had not formally reached out, but that they welcomed constructive dialogue with shareholders.
     
    Christopher Davis, head of activism and M&A at Kleinberg Kaplan, says activists are people looking to free long-established companies that aren’t performing very well.
     
    As one European activist put it recently, there are a lot of sclerotic boards in Europe.

    The view is there’s a lot of low-hanging fruit that has already been picked in the U.S. The focus is now going to Europe which is seen increasingly as the land of opportunity.
     
     
    The Confederation of British Industry has commented on the growth figures for the U.K. economy in the second quarter. The CBI, which represents 190,000 businesses of all sizes and sectors, says it expects growth to remain "lukewarm".
     
    Here's what Rain Newton-Smith, CBI chief economist, had to say:
     
    Economic growth has remained sluggish in line with our expectations. We expect growth to remain lukewarm over the next couple of years, so providing businesses with certainty and stability has never been more important. 

    A limited transition period as we leave the EU where the UK stays in the single market and a customs union until a final deal is in force, would help create a bridge to a new trading arrangement. It would give businesses the confidence they need to invest, expand and create jobs.
     
    The next Italian election is due to be held no later than 20 May 2018. Italy's centre-right parties did well in recent mayoral elections, paving the way for former prime minister Silvio Berlusconi to return to power.
     
    With his party leading in the polls, CNBC's Holly Ellyatt looks at how Berlusconi could now be central to forming a new government.
     
    Click here to read the story.
     

    Italy's 'immortal' Silvio Berlusconi bouncing back in polls and could become kingmaker

    The center-right party of Italian politician and ex-Prime Minister Silvio Berlusconi is leading voter polls in the country and could now be central to forming a new government in forthcoming elections, according to analysts.
     

     

    GLK shares drop sharply on the release of Q2 results showing a pretax loss of £178 million.
     
    The company is extending its cost reduction programme and reviewing its R&D pipeline. The company also says more than 30 pre-clinical and clinical programme are to be stopped.
     
     
    A spokesman for Germany's foreign ministry says it is concerned over the planned U.S. sanctions against Russia. The foreign  ministry would like to work the U..S. on sanctions against North Korea and Russia but would want to agree on common policy together, adding it is important to closely coordinate sanctions.
     
    The spokesman says the U.S. does not have the right to tell German companies how they should act with foreign business partners.
    The European Union says it stands ready to escalate matters with Poland if the country continues to reform its judiciary.
     
    Poland has pulled back from some changes but two measures which may go ahead are considered by the EU as undermining the country's judges.
     
    The EU said it could trigger the 'Article 7' procedure which  will ask fellow EU members to issue a warning against the country.
     
    This has never happened to an EU member state.
     
    For more on this, you can click on the story below.
     

    Poland’s judiciary reform is Europe’s biggest headache – Here’s why

    CNBCPoland could lose its voting rights in the European Union if it presses ahead with reforms to the judiciary.
    Boeing has reported a second quarter adjusted EPS of $2.55 on a revenue of $22.74 billion.
     
    The EPS was a 25 cent beat hile revenues fell just shy.
     
    The company has raised its outlook for EPS and cash flow.
     
    Boeing took in $27 billion of net orders in the second quarter.
     
     
    In pre-market trade, investors are initially appreciating Boeing's report card..
     
     
    Coming up in around ten minutes we have U.S.new home sales for June.
     
     
    May's number was 610,000 and the consensus forecast for June is 620,000. 
    The Pentagon is not addressing any questions in relation to President Trump's ban on transgender people serving in the U.S. military. It says the White House will take the questions. This news broke via Twitter.
     
     
     
     
    On Tuesday the former Chairman of the Joint Chiefs of Staff Admiral Mike Mullen called on Congress to resist dictating policy to the Pentagon on how to treat transgender troops.
Powered by ScribbleLive Content Marketing Software Platform