World Markets Live - July 28 - CNBC Live Events
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World Markets Live - July 28

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

  • Happy Friday everyone! Welcome to World Markets Live. Here are the top stories this morning.
     
    • Strong inflows for Switzerland's financial giants. Credit Suisse sees record assets under management in the second quarter, while rival UBS beats expectations, thanks to more than 13 billion dollars in new client money.
    • BNP Paribas results show investment banking holding up well, but low interest rates cutting into retail profits. CFO Lars Machenil tells us he's happy with the bank's work on slashing expenses.
    • Cage fight. Wall Street veteran Anthony Scaramucci kicks off his new Trump administration job with a foul-mouthed attack on top the president's top advisors.
    • Amazon shares dip after hours, as quarterly income plunges 77 percent, well below expectations. Revenue is strong, but heavy investments in video and global expansion hurt the bottom line.
       
    Also, here are the opening calls for European markets.
     
     
     
  • Credit Suisse has reported a record level of assets under management during the second quarter. The Swiss lender saw its strongest inflows in 6 years, as it posted a 78 percent rise in net profit. That was in line with estimates.
     
    However, the bank warned that low levels of volatility, geopolitical concerns and weaker client activity continued to impact its market dependent operations.
     
     
    Meanwhile, Switzerland's biggest bank UBS on Friday reported 1.174 billion Swiss francs ($1.21 billion) in second-quarter net profit, up 14 percent on a year earlier.

    The median net profit forecast in a Reuters poll of six analysts was for net profit of 879 million francs.
  • French bank BNP Paribas reports Q2 net income down 6.4 percent to 2.40 billion euros. Q2 revenue is down 3.4 percent to 10.94 billion euros.
     
    Operating expense were down 0.3 percent to 7.07 billion euros. The bank cites good business and income drive and says CIB had a good quarter.
     
    Meanwhile, Spanish lender Santander reports Q2 net profit of 1.75 billion euros. H1 net profit rose to 3.62 billion euros versus 2.91 billion a year ago.
     
    The bank maintains its business and financial goals for 2018.
  • UBS has posted a 14 percent rise in net profit for the second quarter, beating expectations. Its wealth management division attracted 13.7 billion Swiss francs in net new money, but Switzerland's biggest bank sounded a cautious tone on the outlook, saying that low volatility and macroeconomic and geopolitical uncertainty could affect client activity. 
     
    CNBC’s Carolin Roth spoke to CEO Sergio Ermotti about the results.
     
    We saw a continuation of the activity level in the wealth management business being confirmed and across the board transaction mandate penetrations, growth of our lending books and also the fact that we are taking advantage of a pick-up in U.S. rates.
     
     
     
  • France's Safran reports core H1 operating income falls 0.9 percent to 1.218 billion euros.  Revenue in the first half was up 0.6 percent to 8.038 billion euros.
     
    The bank reaffirms its 2017 targets.
  • Make sure you join us at 7.50 am CET for CNBC's interview with the Credit Suisse CEO Tidjane Thiam.
     
     
  • BNP Paribas has posted a 3.4 percent decline in group revenues for the second quarter of 2017. However, the bank's corporate and institutional banking division boosted the company's performance, with the unit reporting a near 5 percent pick-up in top-line growth.  
     
    CFO Lars Machenil spoke to CNBC about the results.
     
    We had a very strong second quarter. The bottom line clocks in at 2.4 billion which is very good. If you look through the exceptional items, it’s up 17 percent. It’s a tribute to our operational performances in our three domains and also a tribute to our continuation focus on cost reduction.

    The CFO says the bank has been doing well in a low interest rate environment.
     
  • Air France-KLM reports Q2 revenue of 6.61 billion euros, beating estimates of 6.59 billion. Unit revenue was up 1.5 percent. The airline sees unit revenues up slightly in H2 and expects the fuel bill to decrease by 100 million euros versus 2016.
  • EDF reports H1 EBITDA of 7 billion euros, down 21.8 percent from a year ago.
     
    The utility company confirms its 2017 and 2018 targets. Sales were down 2.6 percent to 35.72 billion euros. 
  • Barclays is due to report its second quarter results at the top of the hour. The U.K. bank derives a fair amount of its revenues from its investment bank, so analysts think it could be the latest casualty of the slump in fixed income trading. Deutsche Bank saw its revenues fall 10 percent as it took a hit in its bond business, following a similar theme for the big players on Wall Street.
     
    Meanwhile, it appears that investors have gained confidence in banks, at least according to the credit default swaps market. The iTraxx financials index, which tracks banking CDS rates, has just fallen below the overall CDS index in Europe.
     
    This would imply that investors see the financial sector as a safer bet in the current environment, than their blue chip counterparts, if only marginally.
     
     
    On the equity front, European banks have clearly outperformed the rest of the market over the last 12 months. The sector got a clear boost from the U.S. presidential election last November. Hopes of higher interest rates have also helped banks, even amid a lack of volatility, which has depressed their trading incomes.
     
     
  • Amazon shares dipped in after-hours trading, following an earnings number that was well short of analyst expectations.
     
    Quarterly income dropped by 77 percent, though revenue jumped. This comes as Amazon is investing to expand into new shopping categories and grow internationally.
     
     
    Meanwhile, Amazon CEO Jeff Bezos briefly unseated Bill Gates as the world's richest person yesterday, according to a Forbes tally. Bezos topped the rich list at $90.6 billion, when Amazon shares rose ahead of the earnings report. But Bezos later lost the title when the stock slid in an overall selloff. 
  • The U.S. Senate is currently voting on a revised, "skinny" health care bill. This as the chamber has struggled to pass legislation overhauling President Obama's signature health care law. The new Senate bill would repeal a medical device tax, along with individual and employer insurance mandates.
     
    Also, U.S. Republicans have ditched the idea of a border adjustment tax, in a move which could simplify the party's push for an overhaul of the tax system.
     
    Scrapping the controversial plan is set to bring relief to large importers, who feared the policy would hurt profits. Republicans are said to be focusing their efforts on implementing simple rate cuts, with the ultimate aim of cutting corporate taxes to as low as 15 percent.
  • New White House Communications Director Anthony Scaramucci has blasted members of President Trump's inner circle, in a profane rant during an interview with The New Yorker. The man in charge of improving the White House's messaging and media coverage took aim at Trump's chief of staff Reince Priebus, and chief strategist Steve Bannon using some pretty colourful language. NBC's White House correspondent Kristen Wellker reports.

  • France's Renault reports H1 net income rose 58.5 percent to 2.379 billion euros. Revenue rose 17.3 percent to 29.537 billion euros. The company reiterated its 2017 goals including an increase in full year operating profit. 
     
    The French automaker says cost cuts generated 204 million euros in H1 profit gain.
  • Germany's Linde reports H1 revenue from continuing operations of 8.653 billion euros, up 4.7 percent. The company confirmed its 2017 outlook. The company is expecting to achieve an increase in revenue for 2017 of 3 percent.
     
    Net profit was 278 million euros, below analysts' estimates of 284 million euros.
  • Banco Sabadell reports H1 net profit of 450.6 million euros, up from 425.3 million euros a year ago.
     
    Net interest income was 1.94 billion euros, unchanged from a year ago. Non-performing loans ratio was 5.49 percent at the end of June.
  • The Obamacare repeal bill dies in the Senate
     
    Three Republicans in the U.S. Senate vote "no" on measures to repeal parts of Obamacare. The Republicans couldn't afford to lose more than two votes.
  • The Obamacare bill amendment has failed in the Senate by 49 votes to 51.
     
    Three Republican senators voted against the bill, including Senators Collins, Murkowski and McCain.
  • Intel shares rose in after-hours trading after the tech group's second quarter earnings beat forecasts.  The world's largest chipmaker also raised its full-year profit guidance. It expects to see higher PC sales, while also forecasting stronger growth from new areas such AI and autonomous driving.
     
     
    Meanwhile, shares in Starbucks were tumbling in after-hours trading after the coffee chain dampened expectations for the current quarter. The company is betting on China to offset cooler growth in the U.S.
     
    It has agreed to buy the remaining 50 percent stake in its East China business from its joint venture partners for about $1.3 billion. This is its biggest acquisition ever.
     
     
  • The Obamacare repeal bill dies in the Senate. The so-called "Skinny repeal" of Obamacare failed in the Senate by 49 votes to 51.
     
    Three Republican senators voted against the bill, including Senators Susan Collins of Maine, Lisa Murkowski of Alaska and John McCain of Arizona​. The Republicans couldn't afford to lose more than two votes.
     
    This is a major setback for the Republican leadership. For more on the story, click here.
     
  • Another slew of earnings released as we hit a new hour.
     
    Barclays reports H1 profit before tax of £2.341 billion. The U.K. bank posts an H1 attributable loss before tax of £1.211 billion loss due to Africa sale. Total income decreased 1 percent to £10.881 billion.
  • Jes Staley, CEO of Barclays, says the second quarter closes the restructuring of Barclays.
     
    He says the sale of the Africa business unit helped increase the bank’s CET1 ratio to 13.1 percent.
     
    We’re now a clean bank and the restructuring is over. We generated a return on tangible equity in the bank of 7.2 percent. Our profits before tax year over year were up about 78 percent. So we feel good about how the bank is positioned.
     
    He says the bank is now free of its legacy issues.
     
     
  • BT Group reports Q1 operating profit of £602 million and revenue of £5.84 billion. Pretax profit was £418 million. 
     
    The telecom says its restructuring programme is on track. Its consumer and EE divisions will be brough togetht to drive converged products and accelerate transformation.
  • Bank of Ireland reports H1 underlying profit before tax of 480 million euros versus 560 million euros a year ago.
     
    Net impairment charges came to 59 million euros versus 93 million euros a year ago.
     
    First half Irish mortgage lending was up over 30 percent, increasing its market share to 26 percent.
  • U.K. firm Johnson Matthey reports Q1 trading in line with expectations and its guidance for the full year is unchanged. The company says the year has begun in line with expectations.
     
    The company delivered low single digit sales growth at constant rates in Q1. It is implementing a restructuring programme to deliver £10 million of cost savings in the second half of the year and £15 million in 2018 to 2019.
  • These are the top news stories for the hour:
     
    • Strong inflows for Switzerland's financial giants. Credit Suisse sees record assets under management in the second quarter, as CEO Tidjane Thiam tells CNBC the bank's restructuring plans have started to bear fruit.
    • At UBS more than $13 billion in new client money helped the bank deliver better than expected second quarter profit, despite declining inflows in the U.S.
    • BNP Paribas results show investment banking holding up well, but low interest rates cutting into retail profits. CFO Lars Machenil tells us he's happy with the bank's work on slashing expenses.
    • Barclays sees its first earnings hit by the divestment of its Africa business. But CEO Jes Staley tells us the bank has turned a corner.
     
  • The president has reacted to the news the "skinny repeal" of Obamacare has failed in the Senate by 49 to 51 votes. He's not happy.
  • Airline IAG reports operating profit of 805 million euros before exceptional items. Passenger unit revenue for the quarter is up 1.5 percent. Fuel unit cots before exceptional items fell 10.4 percent.
     
    IAG expects its operating profit for 2017 to show a double-digit percentage improvement year on year.
  • European markets will open at the end of the hour. The major markets of the FTSE, DAX and CAC are called lower, according to future values.
     
     
  • Wolters Kluwer has reported half-year revenue and profit that have beaten expectations. The Dutch information and service provider saw revenues jump 4 percent in constant currencies, while its adjusted net profit of 287 million euros came in ahead of analyst forecasts. Wolters Kluwer has reiterated its full-year outlook, but does expect revenue decline in its legal and regulatory division. 
     
    Nancy McKinstry, CEO of Wolters Kluwer, says all four division are performing in line with expectations. She says the legal market is the last market in its portfolio to transform digitally. 
     
    Still 35 to 40 percent approximately is print. So lawyers are still in that early days of beginning to adopt tools that we see more prevalent in health and the other markets. As we continue the digital transformation in legal and regulatory, you'll see the growth rate improve.
     
     
  • Amazon shares dipped in after-hours trading, following an earnings number that was well short of analyst expectations. Quarterly income dropped by 77 percent, though revenue jumped.
     
    CNBC’s Arjun Kharpal says Amazon continued to deliver revenue growth and investment in areas where it can become a big player.
     
    That means Prime Now deliveries, that means video content and all the other areas it’s dipping its toes into as well. That’s where analysts saw some of the bright spots.
     
    And of course Cloud grew particularly well, which is a strong business for Amazon.
  • French June consumer spending fell 0.8 percent month on month, worse than expected. It grew 0.9 percent in May, according to INSEE.
     
    The preliminary reading of French EU-harmonised inflation in July grew 0.8 percent year on year, matching forecasts and the same as June.
     
    Earlier this morning, the preliminary reading of Q2 GDP was released. It was seen up 0.5 percent quarter over quarter, matching forecasts and growth in Q1. Household spending grew 0.3 percent quarter over quarter.
  • China will further implement more proactive and effective fiscal policy, the finance ministry has announced according to Reuters.
     
    The finance ministry says it will actively and steadily prevent and resolve local government debt risks and will curb increases in hidden local government debt.
  • Asian shares pulled back in the overnight session after U.S. tech stocks came off record highs, according to Reuters.
     
    The MSCI's broadest index of Asia-Pacific shares fell around 1.1 percent, wiping out almost all of its gains for the week. 
     
     
  • European markets are now open for Friday's session. The Stoxx 600 fell 0.11 percent in yesterday's session. 
     
    Today, it is moving lower, down 0.4 percent.
     
     
  • Spanish preliminary Q2 GDP grew 0.9 percent quarter on quarter and 3.1 percent year on year, in line with expectation and improved from the previous quarter.
     
    July's flash EU harmonised CPI grew 1.7 percent year on year, better than forecast and up from June's 1.6 percent.
     
    Meanwhile, the Danish industrial confidence indicator for July improved to 5.0 points, according to the country's statistics office.
  • The Stoxx 600 is down 0.8 percent soon after the start of Friday trade.
     
    The individual European bourses are also down sharply.
     
     
     
  • Several European banks have reported earnings this morning. The banking sector of the Stoxx 600 is down 0.9 percent on the mixed results.
     
     
  • Here's a round up of how some of the big banks are performing after posting results.
     
    • Barclays has posted a £1.6 billion loss in the first half of the year, dragged down by costs associated with the sale of the bank's Africa business. Not including the impact of the sale, the British lender reported a pre-tax profit of £2.3 billion pounds. That is below analyst forecasts of £2.7 billion. CEO Jes Staley told this programme he's confident about the bank's positioning.
    • Credit Suisse has reported a record level of assets under management during the second quarter. The Swiss lender saw its strongest inflows in six years, helping it post a 78 percent rise in net profit. That was in line with estimates. However, the bank warned that low levels of volatility, geopolitical concerns and weaker client activity continued to impact its market dependent operations.
     
     
    • UBS has posted a 14 percent rise in net profit for the second quarter, beating expectations. Its wealth management division attracted 13.7 billion Swiss francs in net new money, but Switzerland's biggest bank sounded a cautious tone on the outlook, saying that low volatility and macroeconomic and geopolitical uncertainty could affect client activity.
    • BNP Paribas has posted a smaller-than-expected decline in second quarter profits, thanks in large part to a pickup in its investment banking division. CIB revenue rose 4-point-6 percent in the face of an overall decline in group revenue of 3-point-4 percent. Lars Machenil, the BNP Paribas CFO, told CNBC that the bank's latest results prove its strategic overhaul is working
  • A strong performance in its largest market, Brazil, has helped Santander post a 37 percent rise in second quarter net profit. That is in line with analyst forecasts. The bank took over failing rival Banco Popular last month to avoid its collapse in a deal backed by EU regulators.
     
    Shares are down about half a percent this morning.
     
     
     
    Richard Champion, deputy CIO of Canaccord Genuity Wealth Management, says economic momentum in Spain looks good and this provides a good background for Santander’s domestic business.
     
    Their management track record is excellent in terms of integration of the many acquisitions they’ve done over the years. I’ve got good confidence in Santander.
     
     
     
  • China's vice finance minister says China's government debt risks are generally under control. That's according to Reuters.
  • Here's more stocks moving markets this morning.
     
    • BBVA has reported a net profit decline on the back of low interest rates and strong competition in a sluggish loan market. The Spanish lender saw net profit decline 1-point-4 percent to 1-point-1 billion euros. BBVA did get some respite from a strong performance at its key Mexican unit, where profits rose by almost 14 percent.
    • Net profit at Spanish lender Banco Sabadell rose six percent in the first half, topping analyst expectations. Net interest income, meantime, slipped by three percentage points.
     
     
    • Adidas has raised its full-year guidance. The German sporting goods maker said it now forecasts sales to rise between 17 to 19 percent, up from an original projection of 12 to 14 percent. Adidas will report first-half results on August 3.
    • Luxury conglomerate Kering has posted a strong set of numbers in the first half of the year, boosted by growing sales at its Gucci and Yves Saint Laurent brands. Net income increased by 78 percent compared to the same period last year.
  • Swedish June retail sales grow 0.2 percent month on month, lower than a Reuters poll forecast of 0.5 percent. 
     
    Retail sales grew 3.5 percent year on year.
     
    Sweden's flash Q2 GDP reading is 1.7 percent quarter over quarter versus a forecast of 1 percent. GDP grew 4 percent year on year.
  • The Stoxx 600 remains down around 0.8 percent. Here are the stocks at the top and bottom of pan-European index.
     
    Adidas is up after raising its full year guidance. Credit Suisse is second on the chart following its 78 percent rise in net profit.
     
     
    Renault is near the bottom despite hitting record sales and profit. 
     
     
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