World Markets Live - July 27 - CNBC Live Events

CNBC Live Events

World Markets Live - July 27

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

    Royal Dutch Shell Q2 pretax profit was $2.55 billion. Revenue came to $72.13 billion. Net profit was $1.55 billion. Q2 dividend per share was 47 cents. 
    Cash flow from operating activities increased to $11, 285 million from $2,292 million a year ago.
    Sky PLC reports full year earnings per share of 40 pence. Net profit was £695 million and operating profit was £964 million. Revenue was £12.92 billion and EBITDA was £1.94 billion.
    The company's revenue increased 10 percent on a 52 week basis. The company returned to profit growth in Q4. The company says it is confident on delivering on its plans. It intends to increase investment in Sky Originals by 25 percent.
    Diageo reports full year operating profit of £3.56 billion. Full year organic operating profit grew 5.6 percent. Total dividend is 62.2 pence per share, an increase of 5 percent. 
    The company continues to expect mid-single digit organic net sales growth. Full year net sales was £12.1 billion, up 15 percent.
    Ivan Menezes, CEO at Diageo, says these are a strong set of numbers based on strong fundamentals.

    He says its productivity programme has helped. The company has confidence to raise its guidance for margin expansion and to initiate a stock buyback programme of £1.5 billion.
    The company is strong, it’s executing well, we believe we can sustain good quality growth margin expansion and cash generation as we move forward.
    AstraZeneca reports Q2 pretax profit of $492 million and operating profit of $925 million. Q2 revenue was $5.05 billion. The company says it performed in line with views as the pipeline continued to deliver. Core earnings per share came to 87 cents. It reiterated its financial guidance for 2017.
    The company also announced a strategic oncology collaboration with Merck. The two will independently develop and commercialise two drugs. They will share the costs of this. 
    These are the top headlines for the hour:
    • Deutsche Bank shares fall in pre-market trade despite a surprise jump in net profit, as the German financial giant suffers the same fate as its U.S. peers with a slump in fixed income trading.
    • Roche raises its 2017 outlook, as first-half profit tops market expectations, driven by strong sales from new drugs. The CEO tells CNBC he expects the strong momentum to continue.
    • Bayer shares fall in pre-market trade after the pharmaceutical and chemicals group trimmed its full-year sales forecast by 2 billion euros. CNBC will speak to the CEO at 9:00 CET.
    • Downstream powers Shell to a beat, as the oil giant more than triples its profits in the second quarter.
    Samsung Electronics reported earlier record high profits in the second quarter. The company told markets it expects the chip boom to continue.
    Samsung Heavy Industries has now reported Q2 net income of 22.7 billion Korean won versus a loss of 212.4 billion won the year before.
    Samsung SDI reports net profit of 186.59 billion Korean won versus 955.81 billion won the year before. Operating profit was 5.46 billion won versus a loss of 54.17 billion the year before.
    Shell's second quarter profit has topped analyst expectations, rising nearly 250 percent to $3.6 billion, boosted by strong performance in its downstream division. The company's debt to equity ratio fell to just more than 25 percent, down from 28 percent a year ago. 
    Ben van Beurden, the CEO of Royal Dutch Shell, says electric is growing but liquid fuel is still important.
    He says the company is doing well on all fronts, but downstream is more than pulling its weight with earnings of $2.5 billion.
    On the topic of the transition to electric cars and governments banning petrol and diesel engines, he says oil won’t go out of fashion overnight.
    If we want to get to a 2 degree Celsius future, we have to electrify the more advanced economies even further, so electric mobility has to happen and has to happen fast, but even if all the advanced economies would go to 100 percent electric vehicles, that would simply not be enough.
    There’s going to be a lot of liquid growth in other areas where perhaps mobility still has to rely on conventional fuels. There’s going to be other modes of transport, shipping, aviation, that will see growth and for now go on liquids.
    He says oil and gas projects will remain relevant for decades to come.

    Shell profits triple but low oil prices mean it's remaining 'very disciplined'

    Europe's largest oil firm Royal Dutch Shell has beaten analyst expectations, reporting profits for its second quarter that are three times larger than this time last year.
    European markets are now open. The Stoxx 600 moves to the downside, driven by a slew of earnings releases this morning. 85 of the Stoxx 600 are reporting results today.
    Today is the busiest day of earnings season on both sides of the pond.

    Before the bell stateside, we'll get numbers from the likes of ConocoPhillips, Verizon, Twitter and Procter & Gamble. Then after the close, Intel, Starbucks and Amazon are just a few of the names reporting.
    Here in Europe, Volkswagen, Deutsche Bank, Roche and Shell are among the big companies which reported this morning. 
    Nissan Motors net profit for Q1 of 134.92 billion yen, down from last year's 136.38 billion yen. Revenue was higher at 2.76 trillion yen, up from last year's 2.65 trillion.
    Huawei reports revenue rose 15 percent year-on-year to 283.1 billion yuan ($42 billion) in the first half of the year. That's its slowest growth in four years, according to Reuters.
    The Chinese company reports an H1 operating margin of 11 percent.
    AstraZeneca shares are set for their worst ever one-day loss. The Anglo-Swedish pharmaceutical firm saw its combination lung cancer drug fail a key trial, in what's seen as a major setback. The news comes as AstraZeneca posted a second quarter fall in drug sales. The company lost patents on blockbuster medicines like cholesterol pill Crestor.

    Mick Cooper, analyst at Trinity Delta, says the failure of the immunotherapy drug is a major setback.
    Immunotherapy was meant to be the whole new paradigm shift for cancer treatment, and it is; we’re moving away from chemotherapy to immune-oncology. But the thing for AstraZeneca is they’re already late to the party. There are already Merck, BMS, Roche are the players that are significantly further ahead and advanced than AstraZeneca.

    AstraZeneca was hoping this trial would help them essentially gate-crash the part and make up for lost time. These results show that it’s not going to.
    Shares in Deutsche Bank are taking a heavy hit in early trade, after the German lender suffered a 10 percent drop in revenues. This as it saw its fixed income trading business underperform. However, Deutsche posted a pre-tax profit of 466 million euros, beating expectations. 
    Don't miss our interview with Deutsche Bank CEO John Cryan, that's coming up in less than 30 minutes times.

    Republican senators have shifted their focus to a so-called "skinny" healthcare repeal that introduces smaller changes to Obamacare. These include eliminating individual and employer insurance mandates, and removing the medical device tax. This after senators voted against a straight repeal of the law. It was the Senate's second failure to end the Affordable Care Act this week. NBC's Kasie Hunt filed this report.

    Shares of Deutsche Bank are trading lower, after the German lender suffered a 10 percent drop in revenues. This as it saw its fixed income trading business underperform. However, Deutsche posted a pre-tax profit of 466 million euros, beating expectations.
    CNBC’s Annette Weisbach spoke to the CEO John Cryan and started by asking him about the negative market reaction to the numbers.
    Revenues are a bit lower than markets were expecting, but costs are even lower, so profits are higher. I think the results are a bit mixed and people have been focusing on revenues because we’ve guided them to focus on revenues, and there the situation is a little bit mixed too.

    We’re very satisfied with the performance of some of our businesses, while others have fallen a short of our own expectations.

    Deutsche Bank CEO John Cryan says the euro is getting stronger because of market expectations.
    The market is seeing less expectation of growth in the U.S., more in Europe and the forex markets are taking the strain, not the interest rate markets.
    He says the bank has big dollar books, so a weaker dollar contributes less to the company, but it has a reasonable balance of exposure to the euro and dollar.
    On the topic of Brexit, he says it remains to be seen what impact it has.
    But at the moment it's a little bit positive for jobs in Frankfurt, because we need to make sure what we can do here is exactly what we can do in London today. 
    Several dozen U.S. companies are reporting their latest earnings results today, both before and after the bell. This is the heaviest day of earnings season.
    Ahead of the open bell, here are the pics of some of the major companies set to report:
    • Bristol-Myers Squibb,
    • Celgene,
    • Comcast,
    • ConocoPhillips,
    • Deutsche Bank,
    • Diageo,
    • Fiat Chrysler,
    • Mastercard,  
    • Nissan,
    • UPS,
    • Verizon
    • Twitter 
    Praxair reports Q2 earnings per share of $1.41. Net income was $406 million. Q2 sales were $2.83 billion, beating estimates of $2.79 billion. 
    The company sees full year adjusted earnings per share of $5.62 to $5.75.
    Twitter has reported earnings of 12 cents per share versus an expected 5 cents. The company said monthly average user growth remained flat from the previous quarter.
    Shares in pre-market trading are falling:
    Twitter said daily average users for the second quarter grew 12 percent year-on-year.
    Advertising revenue fell 8 percent to $489 million, although that was a beat on forecasts.

    Procter & Gamble, the maker of Pampers diapers and Crest toothpaste, reported fourth-quarter earnings and sales Thursday that topped analysts' expectations.
    Here's what the company reported vs. what Wall Street was expecting:
    Earnings per share: 85 cents adjusted vs. a forecast for 78 cents adjusted, according to a Thomson Reuters consensus estimate by analysts
    Revenue: $16.08 billion vs. an estimate for $16.02 billion.
    Shares of P&G were climbing around a half a percent in pre-market trading following the news.
    As the deluge of U.S. earnings continues to hit the wires, the effect on the wider markets looks to be net positive.
    A slew of data is due out at 8:30 a.m. ET, including jobless claims, durable goods orders, advance economic indicators and the Chicago Fed's National Activity Index.
    The euro is giving up some of its week-so-far gains against the dollar in trading today. 
    The dollar sold off steeply as investors interpreted Wednesday's Fed statement as an intent to keep interest rates lower for longer.
    However the greenback has since recovered some of its poise.
    Although any dollar strength today has to be viewed in the context of a steady loss in value across 2017.
    U.S. jobless claims are due in 13 minutes. They are seen at 240,00 for last week.
    U.S. Durable Goods data will be released at the same time.
    Two pieces of data.
    U.S. jobless claims rise 244,000 in the July 22 week. That's a 10,000 rise from the previous week.
    Durable goods rose at the quickest rate in almost 3 years as the drive for civilian aircraft surged. Orders of durable goods rose 6.5 percent from a month earlier.
    Economist had predicted a 3.8 percent rise. 
    Ex- transportation, durable goods orders only rose +0.2 percent.
    This 7-day print was taken at 1:40 p.m. London time. Following the release, the dollar held steady against trading partners.
    Leadership at Uber will take someone who can lead a complex global company and provide a deft political touch. If not done soon, is the ride hailing app set to stall?

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    Another set of record highs for the 3 main indices in the United States.
    Here are the best performers listed on the main U.S. indices today. Facebook has hit an all time high and now has a market capitalization of $500 billion. 
    As stocks stand, Jeff Bezos just overtook Bill Gates as the world's richest man.

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    You've seen the best performers so here are the laggards.
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