World Markets Live - July 27 - CNBC Live Events
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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.

  • 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.
     
     
     
  • The U.K. Financial Conduct Authority's CEO Andrew Bailey says they must begin in earnest the transition to an alternative to the LIBOR rate benchmark.
     
    Bailey has set the end of 2021 as the deadline to move to a LIBOR alternative, according to Reuters.
  • AstraZeneca's CEO Pascal Soriot is not commenting on speculation he may be moving to Teva. The CEo says he is looking forward to continuing to lead the team at AstraZeneca and says he is proud to be CEO of the company.
     
    Shares in the company are on track for their worst day ever, down more than 15 percent, after the results of a clinical drug trial showed a new cancer treatment failed to help patients. This disappointed markets.
     
     
  • It’s the busiest day of the earning season, both here and later on in the U.S.
     
    James Barty, head of European equity strategy at BofA Merrill Lynch, says the earnings so far have been a mixed bag.
     
    We’ve had some shocks, such as AstraZeneca. We’ve had some good numbers out of the drinks companies and the oil companies. It’s always a bit of a mixed picture. The overall message from the earnings season is on balance the earnings continue to get better. This has been the big change in 2017.
     
    Normally we have those lovely charts where earnings start being predicted in double digits and we spend the entire year revising them down. Well what have we done this year? We’ve actually been revising them up.
     
    He says this is why equity markets have been performing so well. He says on balance it’s been a pretty good earnings season.
     
     
  • Downstream powers Royal Dutch Shell to a beat, as the oil giant more than triples its profits in the second quarter. CEO Ben van Beurden told CNBC the energy market is regaining stability. The company will pay an interim dividend of 47 cents per share.
     
    According to reports, the CEO says the company has a "lower forever" mindset on oil prices. He adds that he doesn't see any operational issue in Qatar at the moment.
     
    Shares in Shell are up almost 1 percent today.
     
     
     
     
  • 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.
     
     
  • Tate and Lyle shares are getting a lift after reporting a good start to the year. 
     
    The British food group said both profit and volumes were ahead in the first quarter and reaffirmed its full-year guidance.
     
     
    Nick Hampton, chief financial officer at Tate & Lyle, says the company has a strong, stable bulk ingredients business with a North American focus which has stable earnings. Its global specialty food ingredients business is the main growth driver.
     
    He says customers are prepared to pay for goods which allow them to provide what consumers want, such as healthier foods and snacks with less sugar and fat.
     
    If you ate a low-fat yogurt this morning, it probably had one of our starches in it that helps provide that creamy texture that you love, but without the fats. And of course, that’s a growth area so our customers are very delighted to work with us on solutions like that. That’s the key to making our business grow going forward. 
     
     
  • President Trump has announced a ban on transgender people from the U.S. military, a move praised by conservative activists and condemned by LGBT rights groups.

    Trump tweeted that the U.S. government "will not accept or allow Transgender individuals to serve in any capacity in the U.S. Military." 
     
    He added the military "cannot be burdened with the tremendous medical costs and disruption that transgender in the military would entail."
     
     
     
  • 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.

  • The massively busy day of earnings continues across the Atlantic. 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.

    The U.S. markets are called higher, according to future values, following on from the strong finish to yesterday's session. Wall Street rose yesterday after the Fed decided to leave interest rates unchanged.

     
  • 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 tells CNBC that low volatility and negative rates have had an impact.
     
    He says the lower rates go, the tougher it is for the bank. He says the bank's sensitivity to rate movements could be over 1 billion euros per year.
     
    We don't know how rates will change, but we are positively exposed to rates going up.
     
    He says its hard to say how the central bank will  respond to low inflation and high growth is hard to say.
  • 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. 
  • Swedish Prime Minister Stefan Lofven announces he is rearranging the government and appoints a new interior minister and new infrastructure minister. That's according to Reuters.
     
    He says the previous ministers have resigned in the wake of an IT-scandal. 
     
    The country's defence minister is staying on despite a vote of no confidence, adding that the vote against the defence minister was "not serious."
     
    Opposition parties called for a no confidence vote on all three ministers.
     
    Despite the scandal, Lofven has shunned the option of calling an early election, saying it wouldn't help Sweden to start a political crisis.
  • After a mixed morning of earnings with some big companies disappointing and others beating expectations, the Stoxx 600 is currently down 0.11 percent.
     
    The individual European markets are more mixed, with some markets recording gains.
     
     
     
  • Diageo shares are making strong gains, rising more than 6 percent on its results. The drinks maker is the second best performer on the Stoxx 600 today.
     
     
    Andrew Duncan, Senior Analyst, Equity Research at Killik & Co, says the company posted a solid set of full-year results, with revenues beating estimates and rising to £12.1 billion.
     
    Johnnie Walker in particular performing well around the world. 
     
    Management signalled confidence in the medium term outlook by raising its 2019 margin growth target from 100bps to 175bps, as well as announcing a £1.5bn share buyback to be completed in the next 12 months.
     
     
  • Allegion reports Q2 revenue of $627 million, beating forecasts of $613.3 million, and quarterly earnings per share of $1.10. The company raises its full year revenue growth guidance to a range of 6.5 to 7.5 percent. Operating income came to $134.1 million.
  • 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 
  • EU antitrust regulators approve FMC's acquisition of DuPont's business unit and clears Dupont's acquisition of FMC's health and nutrition business.
     
    The regulators say the approval is on the condition that FMC sells two of its herbicide businesses and DuPont sells its food gelling agents business.
  • The leader of Swedish opposition party the Christian Democrats says she has no confidence in the country's defence minister.
     
    Ebba Busch Thor says the decision of the no confidence vote stands.
     
    This after the country's prime minister said the vote was "not serious" and kept the current defence minister in power, while two other ministers resigned over an IT-scandal.
  • The Swiss franc has fallen to a multi-year low against the euro. The currency has hit its lowest level since the Swiss National Bank removed a cap on the currency in January 2015.
     
    The franc has been falling since Monday as investors bet the SNB will keep monetary policy loose, according to Reuters.
     
     
  • 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.
  • Comcast revenues beat estimates at $21.2 billion versus $20.86 billion. Revenue was up versus $19.27 billion the year before.
     
    Net income was $2.51 billion, with earnings per share of 52 cents.
     
    Disclaimer - CNBC is owned by Comcast.
  • Comcast shares are up around 1.6 percent in premarket trade after its Q2 earnings report. The company set a quarterly dividend of $0.1575 per share. Net video customers saw an increase of 34,000.
     
     
  • Dunkin Brands, the company behind Dunkin' Donuts and Baskin-Robbins, reports adjusted Q2 earnings per share of 64 cents, beating the IBES forecast of 62 cents per share.
     
    Revenue for the second quarter was $218.5 million. The company continues to expect full year earnings per share of $2.22 to $2.30 and expects low-to-mid single digit revenue growth on both a 52 and 53 week basis.
  • AstraZeneca shares are down more than 16 percent, setting the stock on course for its worst day ever.
     
    By Reuters calculations, the company has seen $14 billion wiped off its balance sheet this morning alone.
     
    The British pharmaceutical company said a combination of two of its new oncology drugs failed to shrink lung cancer tumors in a clinical trial.
     
     
    The news cast doubt among investors that the firm would be able to achieve ambitious growth plans.
     
    The firm also reported its results for the second quarter which could be described as broadly in line with expectations, with a 10% drop in sales offset to an extent by a beat in earnings per share. 
  • The net effect of that earnings report from Verizon is a near one percent gain in pre-market trading.
     
    The telco has been touted as a likely target for firms including Comcast and Dish Network.
     
     
  • 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.
     
     
  • Twitter reported lower than expected monthly active user growth in its second-quarter earnings report before the bell Thursday.

    Shares of the company dropped 5 percent in pre-market trading, after the company reported 328 million monthly active users, unchanged from the previous quarter.

    Advertising revenue also decreased 8 percent year-over-year, totaling $489 million compared to $535 million in the same quarter last year.
     

    Twitter shares tumble 5 percent as it fails to deliver user growth

    CNBCTwitter beat estimates on its top and bottom line but monthly active user growth was flat from the previous quarter.
  • 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.
  • The pan-European Stoxx 600 edged marginally lower during early-afternoon deals with major bourses in negative territory.

    Food and beverages stocks were the top performers as investors digested strong earnings news. Britain's Diageo posted higher full-year sales and profits on Thursday, saying productivity initiatives beat expectations. Its shares surged towards the top of the benchmark, up by more than 7 percent.

    Germany's flagship lender Deutsche Bank reported a surprise surge in profits for the second quarter of 2017, beating market estimates and doubling its pre-tax profit figure from last year. However, CEO Jon Cryan said revenues were "not as universally strong as we would have liked." Its shares slipped more than 4 percent on the news.
     
     
    Europe's largest oil firm Royal Dutch Shell surpassed analyst expectations, reporting revenue of $72.13 billion in the second quarter of 2017. The oil and gas giant said it had been supported by its refining and chemicals business. Its shares were slightly higher in lunchtime deals.

    Health-care stocks were down over 1 percent on Thursday amid reports of a major drugs setback for AstraZeneca. The British pharmaceutical company said a combination of two of its new oncology drugs failed to shrink lung cancer tumors in a clinical trial. The news cast doubt among investors that the firm would be able to achieve its ambitious growth plans. Its shares tumbled 15 percent, slumping to its lowest level in nearly five months.
  • 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?
     

    Is Uber in trouble?

    CNBCFollowing the resignation of CEO Travis Kalanick, CNBC’s Tom Chitty looks at whether Uber’s various scandals and ongoing criminal investigations could put the technology company’s future in doubt.
     
     
  •  
    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.
     

    Jeff Bezos is the world’s richest man

    CNBCJeff Bezos, the Amazon founder who started selling books from his garage 22 years ago, is the world's richest man.
  • You've seen the best performers so here are the laggards.
     
     
     
     
  • The US Treasury Secretary Steven Mnuchin has released comments ahead of a testimony to be delivered to Capitol Hill today.
     
    Mnuchin said:
     
    • Treasury has pressed the IMF to boost focus on global economic imbalances
    • US will preserve investments in multilateral development banks "where it makes sense"
    • Housing Finance policy should be designed to provide financing for homeowners and multi-family units
    • Administration is focused on a "significant middle income" tax cut
     
     
  • The EPA in the United States is to announce the approval for a fix of more than 300,000 Volkswagen cars. This according to Reuters who quote sources.
     
     
    Shares in VW are lower today after reporting a second quarter net profit of 3.2 billion euros. The company tweaked guidance for full year sales to rise more than 4 percent.
     
    No change to margin guidance however.
     
  • U.S. markets continue to stay in the green as earnings hold sway over investor action.
     
     
  • Tomorrow we look at another day of earnings but nowhere near as busy.
     
    We do hear from, among others, BNP Paribas, Renault, Air France-KLM and EDF in France. In the UK, Barclays, BT and IAG all report while Spanish financial watchers will look for Banco Santander and Banco Sabadell.
     
    In the U.S. before the bell we hear from AbbVie, Chevron, ExxonMobil, Merck and  American Airlines.
     
    On the data front we will look for both the US and French second quarter first estimate of GDP.  

  • And here are how European markets have closed.
     
     
    That is where we will leave the blog until tomorrow. Please check in again tomorrow!
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