World Markets Live - July 31 - CNBC Live Events
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CNBC Live Events

World Markets Live - July 31

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

  • Italy's July preliminary reading of harmonised inflation is -1.9 percent month to month and +1.2 percent year on year, according to Eurostat.
     
    This matched forecasts.
  • More European data is released. May retail sales grew 0.3 percent year on year after a revised 2.1 percent in April.
  • United Plantations reports Q2 earnings per share of 0.5282 Malaysian ringgit. Revenue was 355.3 million ringgit and net income was 109.8 million ringgit.
  • A Kremlin spokesman says the reduction in the U.S. diplomatic presence will include both local staff and U.S. diplomats. The overall number of U.S. diplomatic staff in Russia is about 1,200.
     
    The spokesman says there was no point in waiting until Trump signed the sanctions legislation before reducing the number of diplomats.
     
    The spokesman says the way out of the current situation is through political will to repair relations.
     
    They add that Russia is ready to continue ties with the U.S. in areas where it's in Russia's interests. However, if the U.S. retaliates to the reduction in diplomatic staff, Russia will take counter measures.
  • Looking ahead to the U.S. open and stock markets are called marginally higher, according to future values.
     
    The Dow is called about 0.2 percent higher, following on from its 0.15 percent rise on Friday. The Nasdaq is also called about 0.2 percent higher, while the S&P is called up about 0.1 percent. 
     
    Both the Nasdaq and S&P finished Friday's session lower.
     
     
  • HSBC shares are up nearly 3 percent today. It was the top performing stock on the Stoxx 600 earlier in the session but has been overtaken. Europe's biggest bank is launching its third share buyback in a year, after reporting its first half pre-tax profit topped $10 billion. 
     
    Rebecca O'Keeffe, head of investment at Interactive Investor, says the bank's share price rise has contributed almost half of the FTSE 100's gains today.
     
    Combined with higher commodity stocks, buoyed by gains in oil and industrial metal prices, UK markets are outperforming their European peers.
     
    HSBC’s performance is being driven by economic strength in Asia, which is being helped by rising Chinese demand. For investors looking to gain exposure to Eastern consumers and markets, it has been a very attractive option.
     
    Over 30 days, the stock is up more than 7 percent.
     
     
     
     
  • HSBC has posted a five percent rise in first half profit to $10.2 billion, beating expectations. Europe's biggest bank also announced a two billion dollar share buyback, the third in a year.
     
    Deutsche Bank research analysts Stephen Andrews and David Lock say they expect HSBC shares to respond positively, though tempered by outlook on the call.
     
    Overall: a good set of numbers this morning with revenues ahead in most divisions. 
     
    If we were to criticize it is over the quality of the beat: it is driven by a number of positive corporate centre items this quarter, a stronger performance in GBM; and a buyback which was slightly short of expectations despite a capital beat. 
     
    Retail banking revenues were strong, but perhaps not in the places where they were expected to be (Asia). 
     
    Despite HSBC's stock price growth in today's session, the banking sector of the Stoxx 600 is up just 0.08 percent. Over 30 days the secot is up around 4 percent.
     
     
     
  • Here is the latest euro zone news for the hour:
     
    • The European Union commission says it approves of public support for construction of the the Frankfurt-Hahn airport in Germany. It approves support of up to 25.3 million euros.
    • Germany's transport ministry says it is open to a class action lawsuit regarding the emission scandal. The foreign ministry says it is too early to discuss the question of car incentives in response to the emissions scandal.
    • Earlier today, Germany's economy minister Brigitte Zypries said U.S. sanctions against Russia that may affect European companies are against international law. She called for the EU commission to look into possible countermeasures against the U.S.
    • The euro zone unemployment rate fell to 9.1 percent in June from 9.2 percent in May, the lowest rate since February 2009. The number of jobless fell 148,000.
  • Loews reports earnings per share of 69 cents on net income of $231 million in the second quarter.
     
    This compares to a net loss of $65 million, or 19 cents per shares, during the same period the year before.
  • The European Union says it deeply regrets the violence which occurred in Venezuela during the weekend's election. At least 7 people died during confrontations between protesters and security forces.
     
    The EU condemns the excessive and disproportionate use of force by security forces in the country, according to a spokesperson cited by Reuters.
     
    Venezuela's government claims more than 8 million people took part in the vote for a Constituent Assembly which critics condemn as a way for President Nicolas Maduro to cling to power.
     

    Venezuela regime says more people voted to boost its power than appear to have voted at all

    Venezuelan authorities said 8 million voted to create an assembly endowing President Maduro's ruling socialist party with unlimited powers.
     
  • Diamond Offshore Drilling reports second quarter earnings per share of 12 cents, way under expectations of 24 cents per share.
     
    The company reports total revenue increased to $399.2 million compared to $388.7 million the year before. The company says Q2 results were impacted by impairment charges and related taxes of $46 million. The company total contracted backlog is valued at $2.9 billion.
  • Snap shares are in focus today, ahead of the market open.
     
    Today marks the end of the first 150 day "lock-in" phase for shareholders who bought into the company during the IPO in March. They can now start selling their shares if they wish, and this may be key selling signal for markets.
     
    Some of these shareholders include early investors and former employees of the company.
     
    Shares in the company are down 1.6 percent in premarket trade. Snap announces its Q2 results 10 Aug
     
     
  • The German government has urged car companies suspected of being part of a cartel to cooperate with authorities. That's according to Reuters citing a government spokeswoman. 
     
    The government spokeswoman says the diesel summit is happening so politicians can tell the car industry what they expect. A spokesman for the transport ministry says the government will go into the diesel summit on August 2nd with a unified position.
     
    Shares in German car makers are lower today.
     
     
  • Euro zone inflation for July is estimated at 1.3 percent, unchanged from June. The inflation rates excluding unprocessed food and energy rose to 1.3 percent in July from 1.2 percent in June.
     
    Barclays analyst Fabio Fois says it is too early to call for a sustained acceleration in core inflation.
     
    At the core level, preliminary data for July do not offer much insight, hence we do not change our view that the underlying inflation recovery remains in slow motion throughout the forecast horizon. 
     
    We interpret the fairly resilient July performance of services inflation as mainly driven by seasonal factors which are likely to have supported volatile components such as transport services and package holidays and that will likely correct through the summer, most likely in September.
     
    Hence, we keep our cautious stance that services inflation recovery remains on track but is unlikely to accelerate decisively unless labour markets tighten further to the point that it starts to generate sustained wage inflation pressure. 
     
     The euro initially pared losses against the dollar after the inflation and unemployment data were released, but it remains lower against the U.S. currency.
     
     
  • Community Bank System Inc reports Q2 net income of $17.2 million, and earnings per share of 35 cents. Revenue rose 20.7 percent to $129.3 million.
     
    The company declares a quarterly cash dividend of 32 cents per share, up from 31 cents in Q2 2016.
  • Discovery Communications is to acquire Scripps Networks Interactive in a deal worth $90 per share. Discovery will pay $14.6 billion in cash and stocks.
     
    Discovery says the combined company will have nearly 20 percent share of the ad-supported pay-TV audience in the U.S.
     
    Scripps' shareholders will own around 20 percent of Discovery's fully diluted common shares.
     
    This after Discovery reports Q2 earnings per share of 64 cents.
  • Scripps' shares are called more than 1 percent higher in premarket trade on news it will be acquired by Discovery Communications. 
     
    Scripps also posted Q2 revenue of $925 million and earnings per share of $1.52. The company sees full year revenue down about 4 percent.
     
    Discovery is acquiring Scripps in a deal worth $90 per share, a premium of 3.5 percent to Friday's closing price.
     
     
  • Roper Technologies raises its full year adjusted earnings per share range to $9.12 to $9.30, from a previous range of $8.98 to $9.28.
     
    The company reports Q2 earning per share of $1.74 on net income of $179.6 million. Sales came to $1.13 billion.
  • Oil States reports a Q2 loss per share of 28 cents. Q2 net loss was $14.2 million on revenue of $171.4 million. 
  • German Economy Minister Brigitte Zypries asked the European Commission to look into possible countermeasures against the United States, following tough sanctions against Russia that could potentially hit European companies.
     

    German minister urges ‘countermeasures’ against US for Russia sanctions

    CNBCGerman Economy Minister Brigitte Zypries asked the European Commission to look into possible countermeasures against the United States.
  • U.S. stock index futures pointed to a slightly higher open on Monday as investors keep their focus on earnings reports.

    Dow futures rose 41 points, while S&P and Nasdaq 100 futures climbed 2 points and 9.5 points, respectively.

    French drug maker Sanofi and HSBC released their latest figures before the bell. HSBC, Europe's largest bank, announced a 5 percent rise in pretax profits in the first half of 2017 as well as the third share buyback in a year. Pandora Media, Alexandria Real Estate and Itau Unibanco are due to report after the bell.
     
     
  • Gold prices hit their highest in almost seven weeks on Monday, boosted by a struggling dollar and U.S. economic data that has cast doubt on whether the Federal Reserve will raise rates again this year.
     
     
  • European markets were higher in early afternoon trade on Monday as investors reacted to key economic data and digested earnings reports.
     
    Forecast-beating profits at HSBC and strong gains for miners on the back of a two-year high in copper prices lifted European shares while the dollar edged up off 13-month lows against other major currencies.
     
     
     
     
  •  Oil prices rose on Monday, putting July on track to become the strongest month so far this year, as news of a producers' technical meeting next week added to bullish sentiment driven by the threat of U.S. sanctions against Venezuela.

    Investors also eyed a tightening U.S. market after heavy inventory falls and slower new oil rig additions last week.
     
     
  • Check out which companies are making headlines before the bell:
     
    Scripps Networks – The cable network operator agreed to be bought by Discovery Communications for $14.6 billion in cash and stock, or $90 per share. 
     
    Boeing — The hottest stock in the Dow Jones industrial average has risen for six consecutive sessions and gained nearly 15 percent over that time and adding more than 212 points to the Dow all by itself.
     
    Facebook – Facebook was downgraded to "sell" from "hold" at Pivotal Research, which said the social media giant has "unaccounted risks to growth."
     
    Coach – Jefferies downgraded the handbag and accessories maker to "hold" from "buy," saying the positives it detailed its prior "buy" rating are now incorporated into the stock's price. 
     
    GoPro – The high definition camera maker's stock was upgraded to "equal-weight" from "underweight" at Morgan Stanley, which said the stock now reflects current challenges. 
     
    Sanofi – Sanofi raised its full-year profit forecast, on strong growth in its vaccines and consumer health care businesses, among others. Profit and sales for its latest quarter for the drugmaker were in line with analysts' forecasts.
     
    Tesla – The automaker handed over the first 30 Model 3 electric cars to buyers on Friday, as the company mulls how to fill the more than half-million orders for the car.
     
    Western Digital – The hard disk drive maker and Toshiba struck a partial settlement of its dispute over Toshiba's planned sale of its semiconductor division. Toshiba agreed to provide notice before it concludes any deal.
     
    Click here to see the full list of companies.
  • David Kelly, Chief Global Strategist, J.P. Morgan Asset Management writes about whether the recent US dollar weakness is likely to continue and what it could mean for global and European investors. Let me know if you’d be interested in using or discussing further. 
     
    On Friday, the euro closed at $1.1750, its highest close against the dollar since January of 2015 and up almost 12% year-to-date. The sudden revival of the euro against the dollar has caused many to ask whether this trend has further to run.
     
    In the short run, this is an exceedingly difficult call.  Four broad forces determine the movement of exchange rates: Trade flows, financial flows, exchange rate policy and speculation on the exchange rate itself.  In the short run, the last of these tends to be more powerful than the others. However, speculative waves are notoriously fickle and dollar movements over the next few months are consequently very hard to predict.
     
    However, in the long-run, that is, over the next few years rather than the next few months, a checklist of dollar determinants suggests the dollar is likely to continue to retreat, at least relative to the euro.
     
     
  • More than half of the world's large corporations are looking into blockchain (distributed ledger technology), according to a study by U.K. research firm Juniper Research.

    The research, released on Monday, found that 57 percent of large corporations – defined as any company with more than 20,000 employees – were either actively considering or in the process of deploying blockchain.
     

    Blockchain technology being considered by more than half of big corporations, according to study

    CNBCMore than half of the world’s large corporations are looking into blockchain (distributed ledger technology), according to a study.
  • South Africa's rand extends losses against dollar after Moody's note on political interference, weakens more than 1 percent:
     
     
  • Wall Street stocks have opened higher as investors keep an eye on earnings reports:
     
     
  • Dow opens at record high as Wall Street cheers strong earnings season

    CNBCU.S. equities kicked off Monday's session higher as Wall Street cheered on what's been a strong earnings season.
  • John Kelly was sworn in as White House Chief of Staff moments ago.
     
    Trump says Kelly will be "fantastic" in the role and do a "spectacular" job.
     
    Trump and John Kelly speak during a meeting on cyber security in January 2017
  • The Chicago PMI slides to 58.9 versus 65.7 in June. It was forecast at 60.0 points.
  • Boeing shares hit a new record high of $245.59 in Monday's session. The stock is now the best performer on the Dow Jones index.
     
     
  • Snap shares are sliding today, down 2.8 percent since the start of Monday trade.
     
     
    The shares are sliding as a "lock-in" period for investors who took part in its IPO in March expires today. These investors are now able to sell their shares.
     
     
  • June pending home sales edge up 1.5%, but spring market stalled
     

    June pending home sales edge up 1.5%, but spring market stalled

    CNBCA monthly index of signed contracts to purchase existing homes increased 1.5 percent in June compared to May.
  • President Donald Trump insisted Monday there is no chaos at the White House, even as his new chief of staff is entering a West Wing battered by crisis.

    Retired Gen. John Kelly, previously the Homeland Security secretary, takes over Monday from the ousted Reince Priebus, bringing his military experience to an administration weighed down by a stalled legislative agenda, a cabal of infighting West Wing aides and a stack of investigations.
     

    Trump in tweet denies there's chaos at the White House

    CNBCPresident Donald Trump is insisting there is no chaos in his White House in a tweet.
  • India's Snapdeal said it had decided to remain independent and was ending all talks regarding a sale, bringing the curtain down on months of discussions around a possible acquisition of the e-commerce firm by bigger rival Flipkart.

    The failure to forge a deal is a setback for SoftBank Group, the largest investor in Snapdeal, as the Japanese firm has been trying to engineer an all-stock transaction for months, as a means to secure a sizeable stake in Flipkart, India's largest home-grown e-commerce player. 

    The decision also puts e-commerce giant Amazon.com on a stronger footing in India, as for now it deprives Flipkart of a cash infusion from SoftBank which had been expected to come in parallel with this deal.
  • Didier Borowski, Head of Research, Strategy, and Analysis at Amundi analyses equity markets in the U.S.
     
    Since the beginning of the recovery, on average real GDP has increased at an annualised rate of 2%. This cycle is already one of the longest in US history. The US economy is now nearing full employment without generating the inflationary pressure expected at this stage of the cycle. Corporate earnings recovered dramatically in the first years after the crisis but business investment has proved sluggish by historical standards, probably due to the slowdown in productivity and the uncertain outlook. The ongoing cycle is fragile. On the real economy side, the ongoing expansion continues at the price of increasing imbalances, especially in terms of debt. However, imbalances are the most striking on the financial side. In fact, the equity markets seem clearly overvalued in view of the traditional metrics (Shiller’s P/E etc.) and interest rates are well below their equilibrium level. The recession risk is quite low from an economic point of view. However a sharp correction in asset prices would likely put the economy in recession.
  • Sterling hits new 10-month high:
     
     
  • Ten minutes to Europe close and stocks look like this:
     
     
  • European stocks are now closed for trading. The pan-European Stoxx 600 has closed 0.11 percent lower as investors continue to digest earnings reports:
     
     
  • Major European markets have also closed for the day with mixed signals across the board. Here's what they look like:
     
     
  • And that's all from us here at World Markets Live. Join us from 0600 London time tomorrow for more. Till then, have a great evening and we will see you soon.
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