World Markets Live - July 26 - CNBC Live Events
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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.
     
     
  • LafargeHolcim reports Q2 net profit of 787 million Swiss francs. Sales came to 6.85 billion Swiss francs, below a Reuters poll forecast of 6.93 billion. Operating adjusted EBITDA came to 1.735 billion Swiss francs, beating expactations of 1.714 billion.
  • Asian stocks edged higher in the overnight session. The markets steadied on Wednesday and the dollar held firm as investors awaited the Federal Reserve's policy decision later in the day for more clues on its tightening plans, according to Reuters.
     
    These are Asian markets as of 06:07 a.m. BST.
     
     
    This follows a strong session on Wall Street. The S&P 500 closed at a record high, while the Dow Jones added 100 points.
     
     
    Markets now await the conclusion of a two-day FOMC meeting. The Fed is not expected to raise interest rates, but markets will be looking for clues in the Fed's statement of when it will begin shrinking its balance sheet.
  • The health care vote was marked by the dramatic return of Senator John McCain, who was recently diagnosed with brain cancer and has been recovering from surgery. NBC's Blayne Alexander has more on McCain's comeback.

  • 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 
  • Hyundai Motor reports Q2 revenue of 24.3 trillion won, below estimates of 25.2 trillion. Q2 operating profit was 1.34 trillion won, also missing expectations.
     
    The company says auto market uncertainty will persist because of rising competition and the changing market environment.
  • 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.
     
     
  • Peugeot Citroen reports H1 net income up 3.6 percent to 1.256 billion euros, with revenue up 5 percent to 29.165 billion euros. 
     
    The car maker raises its European auto market full year 2017 growth forecast to 3 percent from 1 percent and raises its Latin America and Russia auto market full year 2017 growth forecasts to 5 percent.
  • Daimler reports Q2 EBIT of 3.746 billion euros and net profit of 2.507 billion euros. The auto maker sees 2017 EBIT up significantly versus its previous forecast for slight growth.
  • Lonza has confirmed its 2017 outlook after posting a 15 percent rise in first half sales. The Swiss pharmaceutical company has also published a new set of mid-term growth forecasts and says it expects its positive earnings momentum to last into the second half of the year. 
     
    Meanwhile, Michelin has reported first half profits short of analyst expectations. The French tyre maker says the miss was due to overestimated foreign exchange gains. Operating profit declined despite a rise in revenue of more than 7 percent. This comes as Michelin pursues cost cuts amid pressure from low-cost competitors. 
  • 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.
     
     
  • Here are the top headlines for the hour:
     
    • Return to battle. Senate Republicans vote to reignite debate on ending Obamacare, as Senator John McCain dramatically reappears following brain surgery.
    • 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.
    • Hitting a speedbump. Daimler sees its second quarter operating profit miss expectations, despite a whopping 28 percent jump in Mercedes-Benz sales in China.
  • ITV has reported its interim results. The company has raised its interim dividend results 5 percent to 2.52 pence per share. Earnings per share in the first half was 5.1 pence.
     
    H1 operating profit was £284 million on revenue of £1.46 billion. The company says first half performance was very much as anticipated.
  • 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.
  • The UBS consumption indicator for Switzerland rose to 1.38 points in June from a revised 1.32 points in May.
  • Luis Costa, head of CEEMEA FX and rates strategy at Citi, says the Trump effect has engineered a weaker dollar.
     
    Every time you have more bad political news; it can be Sessions, it can be the dismissal of the previous spokesperson, it’s dollar weakness.

    Costa says the seeming inability of U.S. politics to get things done is helping deflate the dollar. He says this is a win-win situation as it encourages investors to buy other currencies. 
     
     
  • The U.S. House of Congress voted overwhelmingly for new sanctions on Russia, Iran and North Korea, despite the Trump administration's objections.
     
    The sanctions bill cleared the house with bipartisan support. The bill will now go back to the Senate for a vote. The bill will need to be signed or vetoed by President Trump. Reuters reports the president is withholding suport from the bill until its final language emerges.
     
     
     
  • Russian lawmaker Konstantin Kosachev says Russia should prepare "painful" answer to new U.S. sanctions. That's according to Reuters citing RIA.
     
    Kosachev says there could be no improvement in Russia-U.S. relations after the new sanctions and says relation will only worsen.
  • 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.
  • The latest US 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.
     
     
    Meanwhile, President Trump has told the Wall Street Journal Fed Chair Janet Yellen is doing a "good job" adding that she is still in the running for a second 4 year term. However he also named national economic director Gary Cohn as a possible replacement for Janet Yellen.
  • Australia's central bank Governor Philip Lowe has defended low rates and said hikes in other countries have no automatic impact for Australia. 
     
    Philip Lowe

    Speaking in Sydney, he said there was no need to move in lockstep with other central banks that are tightening. Addressing housing market concerns, he said some of the heat is coming out of Sydney and Melbourne real estate, as increased supply and rising mortgage rates moderate prices.
     
     
  • 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.
  • French economy minister Le Maire says the French state will exercise its pre-emption rights on STX Shipyard if Italian investors do not accept the current offer.
  • General Motors has reported second quarter profits ahead of analyst estimates. The biggest U.S. automaker saw net income of $2.4 billion, a decline from a year earlier. 

    GM also maintained its earnings outlook for 2017 despite a fall in revenue. The automaker's results come as concerns grow over falling car sales and burgeoning inventories. Speaking to CNBC, GM CFO Chuck Stevens declined to discuss planned cuts, but said the automaker is looking to reduce its passenger car production.
     
    GM shares dropped in yesterday's session.
     
     
    Meanwhile, BMW is planning to build an all electric Mini in the U.K. from 2019. The German carmaker plans to begin producing its fully electric "Mini-E" at its Oxford plant, the historic home of the iconic car. The British government says BMW's decision to choose Britain over the Netherlands is a "vote of confidence" in the U.K. ahead of its split from the EU.
     
    This as the U.K. is set to ban 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.
     
  • French July consumer confidence comes in at 104, down from June's 108. It was forecast to come in unchanged at 108.
  • 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.
     
     
  • Russia' deputy foreign minister says new U.S. sanctions leave no room to improve Russia-U.S. relations in the near future. That's according to Interfax.
  • With Congress voting on new sanctions against Russia, CNBC's John Schoen examines how previous U.S. sanctions have impacted the Russian economy.
     

    US sanctions have taken a big bite out of Russia's economy

    As the U.S. steps up sanctions, Russia's shrinking economy is struggling with low oil prices, high inflation, a battered currency and capital flight.
     
  • LVMH will report its first half results after the bell.

    It comes amid dealmaking in the sector. Michael Kors is buying British fashion house Jimmy Choo for almost £900 million, in what its CEO called the first step in building a bigger international luxury group. 
     
    Jon Cox is Head of European Consumer Equities at Kepler Cheuvreux tells CNBC they like the momentum at LVMH and recommends Richemont, but dislikes Swatch.
  • The European Stoxx 600 finished 0.41 percent higher in yesterday's session.
     
    European markets are now open for trade, with the Stoxx 600 opening very flat at the start of Wednesday's session.
     
     
     
     
  • 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.
  • Nintendo reports Q1 net profit of 21.26 billion yen versus a loss of 24.53 billion a year ago.
     
    Sales was 154.07 billion yen, versus 61.97 billion yen a year ago.
     
    The games company says it sold 1.97 million Switch consoles in the period April to June. It is keeping its Switch sales forecasts unchanged at 10 million units for the full year. 
  • The Stoxx 600 is beginning to pull ahead, rising 0.36 percent at the start of Wednesday trade.
     
    Most of the individual major European bourses are trading higher. Click or tap on the arrows to switch between charts.
     
     
     
  • U.K. environment minister Michael Gove says diesel cars may be banned from driving on certain polluted roads in the future.
     
    Speaking to the BBC, Gove says the government is announcing a £200 million package for local authorities to tackle pollution problems. This could include restrictions for drivers in certain areas.
     
    This as Gove is due to launch a plan for the U.K. to ban the sale of all petrol and diesel cars by 2040. 
     
    Environment minister Michael Gove
  • 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.
     
     
     
  • These are the stocks moving markets this morning.
     
    • Daimler's operating profit rose 15 percent in the second quarter, just shy of analyst expectations. Revenue rose 7 percent, in line with estimates, largely thanks to a 28 percent jump in Mercedes-Benz Sales in China. The German automaker also  lifted its guidance for its trucks and van divisions for 2017.
    • Sales and profits at French carmaker PSA Group topped analyst estimates in the second quarter, citing stronger pricing as offsetting weaker sales volumes in Europe and China. PSA meantime raised its full-year growth forecasts for Europe, Latin America and Russia.
     
    • Michelin has reported first half profits short of analyst expectations. The French tyre maker says the miss was due to overestimated foreign exchange gains. Operating profit declined despite a rise in revenue. This comes as Michelin faces pressure from low-cost competitors. Speaking to CNBC, Michelin CFO Marc Henry says the tyre maker is still on track to hit its yearly targets.   
    • British media firm ITV is upping its dividend despite posting a mixed set of first half numbers. ITV's net advertising revenues declined 8 percent over the course of the past six months. However, ITV says it remains on track to meet its full-year financial targets.
  • Here are the top headlines following the market open:
     
    • A tepid start for stocks at the European open, as investors watch to see what the Fed has to say about shrinking its balance sheet.
    • Unicredit suffers a data hack affecting around 400 thousand Italian customers, sending shares in the Italian bank lower.
    • European autos in top gear, lifted by solid results from Daimler and PSA, with shares of the French carmaker topping the CAC.
    • Return to battle. Senate Republicans vote to reignite debate on ending Obamacare, as Senator John McCain dramatically reappears following brain surgery.
  • Sweden's June trade balance was 4.2 billion Swedish crowns. Imports slowed to 109.8 billion in June from 113.3 billion in May, while exports decreased to 114.0 billion from 115.1 billion in May.
  • A Russian lawmaker says Russia-U.S. cooperation in fighting terrorism will be complicated if possible at all after news U.S. sanctions are imposed. That's according to RIA.
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