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.

  • Russian lawmaker Konstantin Kosachyov, chairman of the State Duma International Affairs Committee, says Russia should prepare "painful" answer to new U.S. sanctions.That's according to Reuters citing RIA.
     
    He says there could be no improvement in Russia-U.S. relations after the new sanctions and says relations will only worsen.
     
    Konstantin Kosachyov
     
    Meanwhile, Russia' deputy foreign minister says new U.S. sanctions leave no room to improve Russia-U.S. relations in the near future. 
     
    For more on this story, click here.
     

    Russia lawmaker says US should expect 'painful' response to sanctions — but could it really retaliate?

    CNBCAny Russian response to fresh sanctions from the U.S. is unlikely to cause any major harm for American investors and could merely be a symbolic gesture, according to one political analyst.
  • The opposition is asking President Nicolas Maduro to halt the election he called to form a controversial congress with a mandate to rewrite the constitution.
     
    President Donald Trump has been a vocal critic of Maduro and his policies, and is reportedly considering slapping economic sanctions on Venezuela. The economic crisis has led to more than 1.5 million citizens fleeing the country, with discontent mounting over food shortages and inflation.
     

    Venezuela’s strongman has a plan to get around the elected legislature: Make a new one

    Venezuela's President Nicolas Maduro is pressing ahead with a controversial election that analysts fear may damage the country's democracy.
  • The pan-European Stoxx 600 is up half a percent 50 minutes after the markets opened.
     
    The index is being led higher by the oil & gas and utilities sectors.
     
    Here are the stocks at the top and bottom of the index. Click or tap on the arrows to switch charts.
     
  • 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.
  • Looking ahead to the U.S. markets and future values are predicting a mixed open.
     
    The Dow is called higher, expected to gain almost 50 points. The S&P and Nasdaq look set for a flat open, with the Nasdaq moving a few points to the downside.
     
     
  • Italy's July manufacturing business confidence rises to 107.7, above consensus expectations and higher than June's reading of 107.3 points.
     
    Overall business confidence fell to 105.5 in July from 106.3 in June.
     
    July's consumer confidence rises to 106.7, higher than forecast and beating's June's reading of 106.4 point.
  • These are the top headlines for the next hour:
     
    • 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 400,000 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.
  • 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.

     
  • Looking back over the five years since Draghi's "whatever it takes" speech, Andrew Lilico, director Europe Economics, says the ECB has managed to keep the euro going.
     
    Quite a few people thought that wouldn't happen at the time. I think the euro zone is starting to pick up a little bit, so we're probably going to have something like 1.9 percent growth from it this year. 
     
    If you get into the 2020s there's every chance that if the European Union seizes the opportunity that Brexit presents them to achieve a more coherent euro zone, it could grow quite a bit faster.
  • UniCredit shares are down almost 1 percent after it revealed it is the victim of a data hack. Data on 400,000 clients was impacted as a result of the cyber attack.
     
     
    In a statement, the Italian bank says two breaches took place, the first in September and October 2016 and a second in June and  July 2017.
     
    No data, such as passwords allowing access to customer accounts or allowing for unauthorised transactions, has been affected, whilst some other personal data and IBAN numbers might have been accessed.
     
    UniCredit has launched an audit and has informed all the relevant authorities. In the morning, UniCredit will also file a claim with the Milan Prosecutor's office. The bank has also taken immediate remedial action to close this breach.
  • Oil is trading higher after the latest API data showed a bigger than expected draw down in crude inventories.
     
    The American Petroleum Institute reported that U.S. crude inventories fell by 10.2 million barrels, compared with expectations for a decrease of 2.6 million barrels.
     
     
  • Ben van Buerden, CEO of Royal Dutch Shell, will be on CNBC tomorrow at 8:45 CET. 
     
     
  •  
    The FTSE 100 has hit session highs as U.K. GDP for the second quarter grew 0.3 percent on the quarter and 1.7 percent on the year, in line with expectations.
     
    The ONS says the U.K. economy is 9 percent bigger than the pre-crisis peak in Q1 2008.
     
    Q2 GDP per capita rose 0.1 percent on the quarter and 1 percent on the year. Service sector output grew 0.5 percent on the quarter, industrial output fell 0.4 percent and construction fell 0.9 percent.
     
  • Sterling initially rose against the dollar after GDP data was released but it is now down a few basis points.
     
     
  • Britain's FTSE 100 hits a session high, up around 0.6 percent, after the Q2 GDP data is released.
     
     
    Meanwhile, U.K. June mortgage approvals for home purchases was 40,200, its lowest since September 2016.
  • 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
  • President Trump says his next big priority is to overhaul the U.S. tax code by slashing corporate rates to 15 percent, and giving middle-class taxpayers a break. Speaking to the Wall Street Journal, he added that any hike in taxes would be levied upon the wealthiest.
     
     
    Making America great again, one iPhone at a time. According to President Trump, Apple is planning to open new factories in the United States.
     
    The president told the Wall Street Journal that he spoke to the tech giant's CEO Tim Cook, who told him that the iPhone-maker promised to build three big plants in the U.S. The company came under fire from Trump during his campaign for making most of its products in China.
  • Following the release of U.K. GDP data, let's take a look at how U.K. government bonds are performing. 
     
    The yields on U.K. gilts are falling, down 2 to 3 basis points, after rebounding from double day lows. Here's the bond yield curve.
     
     
  • 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.
     
     
  • Amazon announces plans for a job fair for 50,000 positions. The ecommerce giant will host the job fair on August 2nd in 12 locations across the U.S. 
     
    The company says it has 50,000 roles to fill across its U.S. fulfillment network. The company says more than 10,000 opportunities will be part-time jobs. It plans to make thousands of on-the-spot job offers to candidates who apply on-site as part of the "Amazon Jobs Day."
  • U.K. GDP rose 0.3 percent in Q2 quarter over quarter. The year over year growth rate fell to 1.7 percent from 2 percent in the previous quarter. Both results matched estimates.
     
    Samuel Tombs, chief U.K. economist at Pantheon Macroeconomics, says this preliminary reading confirms the economy has lost momentum as consumers endure falling real wages and businesses hold back on spending.
     
    Industrial production and construction output fell by 0.4% and 0.9% quarter-on-quarter, respectively, so growth was entirely dependent on a 0.5% rise in services output. Note that the increase in services output hinges on the assumption that output rose by a healthy 0.3% month-to-month in June; this is a forecast made by the ONS, which will be revised in time.

    The preliminary GDP estimate matches the MPC’s expectation in May’s Inflation Report, but the weak performance in the industrial sector suggests that the economy is not rebalancing towards net trade and investment, which Mark Carney wants to see before raising interest rates.  The hawks on the Committee also hoped for stronger growth in line with the 0.6% or so rate implied by business surveys, so today’s GDP print clips their wings.
     
    He says the chances of an interest rate rise by the Bank of England next month is extremely low.
     
    Looking ahead, we doubt that the economy will regain momentum in the second half of 2017. Retailers haven’t fully passed on higher import prices to consumers yet, so the squeeze on real wages has further to run.
     
    Meanwhile, firms likely will continue to stockpile cash instead of investing while the outcome of Brexit negotiations remains uncertain. 
  • U.K. finance minister Philip Hammond says the country cannot be complacent about U.K. growth, saying the focus must be on restoring productivity. 
  • 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.
     

     

  • U.K. GDP growth came in as expected at 0.3 percent QQ and 1.7 percent Y-o-Y in the second quarter.
     
    Nathan Sweeney, senior investment manager at Architas, warns the latest figures indicate the U.K. economy is "flat lining" and will give ammo to those opposed to Brexit.
     
    The effects or potential impacts of Brexit are not the underlying cause of the weakness in data. The reality is the U.K. economy has been slowing since well before the Brexit vote took place. And it has been trending down for a number of years. 
     
    The bigger picture is that there has been a significant failure by the central bank to stimulate growth in the UK economy. It is clear that the central bank is now stepping back and will begin to withdraw its monetary stimulus in the form of quantitative easing, which while it staved off a full blown crisis has not succeeded in boosting long term growth. We are experiencing subdued low growth and that will persist unless we see the Government step in to stimulate the economy.  
     
    Sweeney adds the outlook for the U.K. economy is not good, due to Brexit negotiation uncertainty and weak data on growth. 
  • Bitcoin is under pressure today. The price of the digital currency is trending down on concerns that the blockchain will split into two separate bitcoins.
     
    Ethereum, a rivel digital asset, is also falling, and is now below $200.
     

    Bitcoin slammed by more than 10% to below $2,500; Ethereum down big too

    Bitcoin fell to its lowest in five days Tuesday amid uncertainty over whether the digital currency will still avoid a split.
  • The Stoxx 600 continues to gain, rising 0.65 percent. 
     
    Almost all sectors of the European index are positive. Several are posting gains of more than 1 percent, including food & beverages and travel. These are the best and worst performing sectors so far today.
     
     
     
     
  • GlaxoSmithKline reports first half adjusted earnings per share of 27.2 pence.
     
    Q2 sales were £7.32 billion. However, Q2 was a net loss of £180 million, with a total loss per share of 3.7 pence.
     
    The group's operating margin was 28.5 percent.
  • 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 UK's bigger listed stocks are moving higher on average. The index has been propelled upwards by results from broadcaster ITV as well as gains from defensives and mining shares.
     
    The UK GDP figures which showed mild economic expansion in the second quarter also contributing to the bias to buying.
     
     
  • eBay is rolling out a new feature which allows people to search for items using images captured on their phone or tablet.
     
    In a press release the company said that from Autumn (Fall) people can enter a picture into a search bar and then the site will then generate listings that offer a close match to the image.
     
     
    eBay says the software will improve with more use:
     
    To help people solve the challenge of spending hours scouring stores or the web dfor certain items , eBay applied artificial intelligence and machine learning technology.
     
    These technologies are already embedded across the eBAy experience making the marketplace's vast product catalog easily searchable.
     
    As people continue to use image search , eBay will be able to surface even richer results.
  •  Ford has offered a beat on earnings per share, while essentially matching on revenue.
     
  • 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..
     
     
  • The Russian economy minister has claimed that new U.S. sanctions will not have a significant effect on the rouble and will hurt the U.S. president's powers more than Russia's economy.
     
    This according to the Interfax news agency.
     
     
    The U.S. House of Representatives has voted overwhelmingly in favor of imposing new sanctions.
     
    The planned sanctions on Russia were initiated to further punish the country for its annexation of Crimea in 2014 and alleged role in the destabilization of eastern Ukraine.
     
    The bill, which passed by 419 votes to three, proposes new restrictions on oil and gas projects.
     
    'Moscow growing tired of showing restraint towards Washington'

    Russia's Foreign Minister Sergei Ryabkov also said Wednesday that it had repeatedly warned Washington that it was growing tired of showing restraint and would be prepared to retaliate in the event of any hostile moves towards Moscow, the Interfax news agency also reported.

    The European Union has criticized the move as Europe relies on Russia for a large proportion of gas supply.
     
    France has also commented, suggesting the sanctions look illegal.
     
    The country's foreign ministry said the US sanctions, which cover North Korea and Iran as well as Russia, appeared to be at odds with international law because of extra-territorial reach.
     
  • U.S. stock index futures pointed to a slightly higher open on Wednesday, as investors parsed through another batch of major earnings while awaiting a statement by the Federal Reserve.

    Dow futures rose 50 points, while S&P and Nasdaq futures gained 3.5 points and 4.5 points, respectively.

    Boeing, Coca-Cola, Ford and Hershey are among the companies that reported before the bell. Whole Foods, Facebook and PayPal are some of the major names set to release earnings after the close.
     
     
    For more on the earnings and market movers, check out this update.
     

    Early movers: KO, BA, F, DHI, HLT, ANTM, NOC, T, APRN, AMGN & more

    CNBCSome of the names on the move ahead of the open.
  • It must be the Mediterranean diet. The man just rolls on. 
     

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

    CNBCThe 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.
  • Oil on a Brent crude contract has risen back above $50 a barrel. WTI has also firmed in price this morning.
     
    A reported fall in U.S. inventories has hardened the view that a long-oversupplied market is crawling toward balance.
     
    Prior to the US data, oil was helped north by Monday's reports that Saudi Arabia is planning deep crude export cuts in August.
     
     
  • This looks like another Brexit-related deal if ever there was one.
     
    The UK based Fintech firm Cennox has completed the purchase of 3SI Security System’s European Division. 
     
    The deal includes 3SI's Brussels Head Office and supporting infrastructure. No value has been announced for the deal.
     
    Our acquisition of the European Division of 3SI Security Systems, is also great news for our new colleagues and customers across Europe already accessing these products.

     - Clive Nation, CEO, Cennox

    Cennox offer banking security solutions, especially in relation to ATM's.​

  • The European stocks are enjoying a solid session.
     

     Almost all sectors and major bourses are in positive territory.
     
    Stocks in the oil and gas sector among the top performers on earnings news. Subsea 7 shares edged higher after the London-based offshore contractor reported better-than-expected second-quarter earnings.
     
    Meanwhile, Tullow Oil was 6 percent higher after posting higher revenues in the first half of the year. However, the multinational oil firm said an impairment charge and higher costs had resulted in a pretax loss.
     
    Household goods are also higher. Moody's said Wednesday that cigarette consumption is increasing in certain regions and alternative products are unlikely to significantly hit margins. British American Tobacco was up by almost 2 percent.
  • As U.S. indices reach for record highs, here are the stocks that are mostly responsible.
     
     
     
     
     
  • 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. 
  • New home sales have missed expectations with a 0.8 percent rise in June equating to 610,000 sales.
     
    The May figure was revised down to 605,000.
     
    The June median sale price coming in at £310,0000. That cost figure trickling 3.4 percent down from June 2016.
     
     
  • 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.
  • U.S. inventory data has been released for last week showing that both oil and gas stocks have fallen.
     
    The Energy Information Administration said crude inventories fell by 7.2 million barrels in the week to July 21, much more than the expected draw of 2.6 million.
     
     
    Stocks at the Cushing hub in Oklahoma fell by 1.7 million barrels according to EIA data.
     
    Gasoline stocks fell by 1 million barrels compared with expectations of a 614,000-barrel drop.
  •  

    White House to announce Apple-supplier Foxconn manufacturing plant in Wisconsin on Wednesday: Source

    CNBCNo exact location for plant has been chosen – but southeast Wisconsin under consideration, according to a source.
  • The Dow Jones industrial average rose 115 points to hit a record high today. Boeing rose 8 percent and contributed the most gains on the 30-stock index. The S&P 500 also hit a record, rising 0.1 percent as telecommunications led advancers. The Nasdaq composite climbed 0.1 percent and also notched an all-time high.
     
    Here are the U.S. markets as they stood at 4:14 p.m. London time.
     
     
    Dow-component Boeing posted earnings per share of $2.55, topping Wall Street estimates. The company's sales came in below expectations but the firm raised its full-year earnings guidance to a range of $9.80 to $10 per share.
     
    Boeing simply taking off.
     
     
  •  
     
    And that is the close of European markets. The European markets were higher as investors geared up for a rate decision from the U.S. Federal Reserve and continued to digest earnings reports.
     
    A rise in the oil price also boosting a number of stocks.
     
    Tomorrow is a mammoth day for earnings all around the world. 
     
    Nissan, Nomura, Airbus, Total, Deutsche Bank, VW, Shell, Lloyds Banking Group, Amazon, Intel, Fiat Chrysler are just a slim portion of all the report cards filed Thursday.
     
    Join us as they file in from 06:00 a.m. London time.
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