World Markets Live - July 4 - CNBC Live Events
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World Markets Live - July 4

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

  • North Korea published a statement earlier this morning following the launch of a missile which landed within the Japanese exclusive economic zone.
     
    The country claimed the launch was a test of a ICBM Hwasung 14-type, and said this was the last step in becoming a nuclear state.
     
    DPRK is now a proud nuclear state, which possesses almighty ICBM rocket, that can now target anywhere in the world with our nuclear weapons. With this, we can fundamentally end the U.S.' empty threat of nuclear war and offer reliable protection of the peace and stability in the region.
     
    The statement was announced by North Korea's KCNA and translated by Stella Kim. 
     
    North Korea says leader Kim Jong Un ordered and watched the test launch of the intercontinental ballistic missile. North Korea says the ICBM test was successful.
     
    The country says the Hwasong-14 ICBM fired on Tuesday precisely hit a target after 39 minutes of flight.
     
    North Korea says the ICBM reached an altitude of 2,800 km. 
  • North Korea launched a missile on Tuesday. Japan says the missile appeared to land within its exclusive economic zone, according to Reuters.
     
    The missile is believed to be an Intermediate Range Ballistic Missile, not an ICBM, according to the U.S. military. 
     
    The altitude of the North Korean ballistic missile "greatly exceeded" 2,500km, according to the Japanese defence ministry.
     
    North Korea is expected to make a major announcement today at 3:30 local time (7:30 BST), according to media reports.
     

    North Korea launches missile, likely hitting Japanese waters

    North Korea launched a missile Tuesday, with the Japan saying it might have landed in Japan's EEZ, Reuters reported.
  • Good morning and welcome to World Markets Live. Also, happy 4th of July to our American readers!
     
    We'll begin blog coverage at 0600 BST. Here are the opening calls for Europe.
     
     
  • These are the top headlines this morning.
     
    • It's the Fourth of July and the dollar gets in the spirit. The greenback rises to a seven week high on the back of strong ISM numbers, which also sends the yield on the two-year Treasury to the highest level since 2008.
    • North Korea defies warnings from world leaders ahead of the G20 summit, firing a ballistic missile into what is believed to be Japanese waters. 
    • It's an agenda worthy of the Sun King. French president Emmanuel Macron lays out an aggressive reform agenda in Versailles, pledging to cut the number of lawmakers and threatening a referendum.
    • Santander launches its cash call, pricing the rights issue at a 19 percent discount to it's closing price yesterday as it looks to fund the takeover of Banco Popular. 
       
  • Happy Independence Day! 

    There were certainly fireworks in U.S. manufacturing numbers. ISM data showed a blockbuster jump, soaring nearly 3 points to 57.8.

    Within the data there were some signs of falling inflation pressure however, with price growth decelerating sharply, hitting a 7 month low.
     
    The Dow and S&P recorded gains, while the Nasdaq fell in yesterday's session.
     
     
  • Ground Beef prices have fallen ahead of the biggest barbeque day of the year, recently hitting a three year low. That means your homemade burger is cheaper this Fourth of July. 
     

    It looks like it may even get cheaper, with new retail players like German discounters Lidl and Aldi vying for market share stateside with big offers.
  • The EU confirms Japanese PM Abe to visit Brussels on Thursday, expects political agreement on free trade deal
  • The U.S. 2 year yield closed at its highest level since November 2009 in yesterdays session, with the 10 year yield hitting a 1 month high. Mixed messages from central banks spurred a bond sell-off last week, with jitters spreading to the equity market.
     
     
     
  • James Athey, global fund manager at Aberdeen Asset Management, says there is not a lot of value in global bond markets.
     
    If we are therefore on a path towards some normalization in the rate complex in many of these central banks that have had uber easy policy, it is difficult really to see a lot of value in bond markets.

    James says a steep yield curve offers some protection to central bank policy changes.
     
     
  • North Korea has fired a ballistic missile which has landed in the Sea of Japan. A main government spokesperson said there were no reports of damage to planes and ships in the proximity.
     
    Donald Trump responded to the missile launch on Twitter, writing: "Hard to believe that South Korea and Japan will put up with this much longer. Perhaps China will put a heavy move on North Korea and end this nonsense once and for all."
     
     
     
  • Foreign ministers from four Arab countries blockading Qatar will meet in Cairo to discuss the situation.
     
    This as Qatar delivered a handwritten response to a series of demands from the country, which it has said seemed designed to be rejected.
     
    The list included shutting down the news channel Al Jazeera and closing a Turkish military base.
  • The Australian central bank held its cash rate at 1.5 percent on Tuesday. The RBA said steady policy is consistent with its growth and inflation target, and said the economic outlook is supported by low rates.
     
    The Aussie dollar dropped sharply against its U.S. counterpart following the policy decision.
     
     
  • French President Emmanuel Macron says he aims to reform the government by reducing the number of MPs and allowing more proportional representation.
     
    In a speech to lawmakers in Versailles, he threatened a referendum, if Parliament doesn't approve the proposed changes within a year. Macron also addressed France's terrorism threat, announcing new security measures.
     
    Macron addressed both houses of parliament (National Assembly and Senate) in the palace of Versailles
  • U.S. president Donald Trump is spending the 4th of July in in New Jersey, ahead of the G20 summit, where he will meet world leaders including Russian President Vladimir Putin. NBC's Chief White House Correspondent Hallie Jackson has the latest.

  • Should the ECB stop its bond purchases? James Athey, global fund manager at Aberdeen Asset Management, says he’s been skeptical of QE for some time.
     
    I’ve been skeptical of QE really from the beginning, from QE2, not from QE1 which was slightly different. 

    Economically, there is absolutely no reason (for the central bank to own even more government bonds). Economically, there is no real justification for what they’re doing, but they’re terrified.
  • German Chancellor Angela Merkel dropped the word "friend" to describe the United States in her campaign manifesto.
     
    This follows a recent war of words between the two countries over trade, defence spending and climate change. Merkel's CDU party launched its programme yesterday, pledging full employment by 2025, coupled with sustained public investment. 
     
    German Chancellor and head of the Christian Democrats party, Angela Merkel (left) and Horst Seehofer, leader of Bavarian sister Party CSU, present their parties' electoral programmes (JOHN MACDOUGALL/AFP/Getty Images)
  • Spain's Santander has launched its 7.1 billion euro rights issue, pricing the cash call at a 19 percent discount to yesterday's closing price.
     
    It comes as the lender looks to finance the takeover of Banco Popular. Existing shareholders have until later this month to decide whether they want to buy into the capital increase. Santander says it will set aside billions of euros to cover Popular's bad property assets.
     
     
  • Spanish energy company Gas Natural has approached Portuguese rival EDP about a possible merger, according to Reuters. If the potential 35 billion euro deal happens, the combined company would be Europe's fourth largest utility by market value.
     
    Meanwhile, Bain Capital and Cinven are preparing a revised bid for German generic drug company Stada. The FT reports that the companies have been in touch with regulators, hoping to get a waiver that will allow them to make another bid, after a previous bid didn't get enough support from Stada shareholders.
  • A report by Mergermarket has found that global M&A in the first half of 2017 increased by over 8 percent in value, despite there being fewer deals. 
     
    Here are some of the other findings:
     
    • There were 1,117 fewer deals in H1 2017.
    • $1.49 trillion spent across 8,052 deals.
    • There were 17 megadeals in H1 2017 versus 14 in H1 2016.
    • The U.S. and Japan saw M&A market share drop to 40 percent and 18 percent respectively.
  • U.S. markets may be closed for the Independence Day Holiday, but American companies in Europe are expecting to do bumper business this Fourth of July.    
     
    John Eckbert, U.K. CEO of Five Guys, says the burger chain opened its first U.K. store 4 years ago today.
     
    We chose the 4th of July as the first day we would do business in the U.K. as a reference back to our American heritage. We didn’t know what to expect, really. This was the first store outside of America and Canada that had opened for Five Guys. 

    We opened on the 4th of July, we had our first customer show up at 4:00 in the morning, even though we didn’t open until 11:00, so it’s been an amazing 4 years for us here.
     
    John Eckbert with CNBC's Tania Bryer
  • These are the top news stories for the hour.
     
    • It's the Fourth of July and the dollar gets in the spirit. The greenback rises to a seven week high on the back of strong ISM numbers, which also sends the yield on the two-year Treasury to the highest level since 2009.
    • North Korea defies warnings from world leaders ahead of the G20 summit, firing a ballistic missile into Japanese waters. 
    • It's an agenda worthy of the Sun King. French president Emmanuel Macron lays out an agressive reform plan in Versailles, pledging to cut the number of lawmakers and threatening a referendum.
    • Santander launches its cash call, pricing the rights issue at a 19 percent discount to its closing price yesterday, as it looks to fund the takeover of Banco Popular. 
       
  • Heavy discounts and loans to consumers did not help U.S. car sales in the month of June. CNBC's Phil LeBeau has a full breakdown of the numbers.

  • Antoine Lesne, head of SPDR ETF strategy at State Street Global Advisors, says the ISM manufacturing numbers for the U.S. economy released yesterday were surprising to the upside.
     
    The unemployment numbers were strong last month. We were expecting some strong numbers again, but from an economic data standpoint, the U.S. didn’t really benefit from anything that the Trump promises were supposed to be delivering, so we kind of move back on neutral and wait for the economy to progress.

    This is good news from that standpoint, which means that it probably gives a little more chances for slightly more hawkish Fed. 
     
     
  • These are the calls for European markets. The FTSE, DAX and CAC are called to open lower. That's following yesterday's strong session, where the Stoxx 600 gained more than 1 percent.
     
     
  • French President Emmanuel Macron says he aims to reform the government by reducing the number of MPs and allowing more proportional representation. In a speech to lawmakers in Versailles, he threatened a referendum, if Parliament doesn't approve the proposed changes within a year.
     
    Reporting for CNBC, Claire Fournier said Macron had left all the difficult tasks to his prime minister.
     
    Emmanuel Macron stuck to the general. He spoke about France’s potential, France’s assets. He also gave directions to this institutional reform.
     
     
    Fournier says Macron did not want to go into details.
     
    The word that is very much used in the French media and also by Macron’s aides is “Jupiterian”. He wants to restore the presidency’s prestige and he’s inspired as much by General Gaulle as by Barack Obama.
     
    In many ways, his speech yesterday was like a state of the union speech.
  • Moody's has revised its outlook for Asia Pacific banks to stable from negative. 
     
    The credit agency says it believes the commodity-related problem loans have mostly peaked. It expects the trend for government support to be stable. It also said that Chinese authorities moves to curb shadow banking will benefit banks but will also bring adjustment risks.
  • David Wright, co-director and senior scientist at the Union of Concerned Scientists, says the missile fired by North Korea reportedly had a range of more than 930 km and flew for 37 minutes.
     
     A missile of that range would need to fly on a very highly lofted trajectory to have such a long flight time. Assuming a range of 950 km, then a flight time of 37 minutes would require it to reach a maximum altitude of more than 2,800 km (1700 miles).

    So if the reports are correct, that same missile could reach a maximum range of roughly 6,700 km (4,160 miles) on a standard trajectory. That range would not be enough to reach the lower 48 states or the large islands of Hawaii, but would allow it to reach all of Alaska.

    North Korea  has now claimed the missile reach an altitude exceeding 2,800 km and flew for 39 minutes.
  • Sainsbury's has delivered first quarter sales growth above analysts' expectations. The UK supermarket chain posted a 2.7 percent increase in Q1 sales, in part thanks to a recent period of warm weather.
     
    Online grocery sales grew by 8 percent. The company said the market is competitive and that is has worked with suppliers to improve its price position versus competitors.

    Sainsbury's says it's pushing ahead with its cost saving programme and that it continues to monitor price pressures closely. 
  • Sheila Patel, CEO of International, Goldman Sachs Asset Management, says opportunity lies in selectively looking for growth in the market place.
     
    When you look at what’s gone on, you see financial conditions that actually look pretty good. Growth in the U.S. and recovery that people have found sustained. I think you look at EM and you say the underlying conditions for EM are quite positive.
  • European markets have opened to the downside. The Stoxx 600 is off by a third of a percent.
     
     
  • All sectors are in the red at the start of Tuesday trade.
     
  • The individual European markets all seem to be struggling, paring gains from yesterday. Portugal is slow to open as usual.
     
  • German generic drug company Stada is trading sharply higher at the start of trade. This as Bain Capital and Cinven may seek approval from regulators to submit a revised bid for the group.
     
     
    The bidders need a waiver to make another bid, as their previous 5.3 billion euro offer didn't get enough support from Stada shareholders
  • Manish Singh, chief investment officer at Crossbridge Capital, shares his thoughts on healthcare.
     
    Look at the data, people are going to live longer. By the middle of this century they expect that life expectation will go above 100, so clearly there will be a huge demand for health care.

    It could be that a company that is not in that sector could come in and disrupt it, but let’s look at the argument that prevention is going to become a big thing, because if you can’t prevent people from getting sick or getting various problems, the NHS and all these things are going to go bust because people are going to live longer. You will not have the budget to serve all these people.
     
     
  • These are the stocks moving markets this morning. Click or tap on the arrows to switch between share price charts.
     
    • A group of Clariant shareholders have urged others to reject the company's proposed merger with Huntsman. Activist hedge fund Corvex and roofing maker Standard Industries' investment arm, who have a combined 7.2 percent stake in Clariant, say the deal won't unlock value. The Swiss chemical maker and Huntsman announced the $20 billion merger pact in May.
    • Sainsbury's has delivered first quarter sales growth above analysts' expectations. The U.K. supermarket chain posted a 2.7 percent increase in Q1 sales, in part thanks to a recent period of warm weather. Sainsbury's says it's pushing ahead with its cost saving programme and that it is continuing to monitor price pressures closely.
    • Spain's Santander has launched its 7.1 billion euro rights issue, pricing the cash call at a 19 percent discount to yesterday's closing price. It comes as the lender looks to finance the takeover of Banco Popular. Existing shareholders have until later this month to decide whether they want to buy into the capital increase. Santander says it will set aside billions of euros to cover Popular's bad property assets.
    • Banca Carige has approved a series of measures in a bid to rebuild its balance sheet. The Italian lender is planning a capital increase of up to 500 million euros and says it will sell 1.2 billion euros of bad loans.
  • Following their expectation-beating first quarter earnings, Sainsbury's CEO says the food retailer's price position versus rivals improved in Q1. The CEO says Q1 grocery outcome was driven by its own label performance.
     
    The CEO said he is not seeing a massive change in consumer behaviour. He declined to comment on a possible deal to acquire Nisa.
  • China's foreign ministry calls for calm and restraint after the North Korea missile launch.
     
    The ministry says China has been working hard to resolve the North Korea issue and hopes all sides can meet each other half way.
  • These are the main headlines following the European market open:
     
    • European stock markets are lower, but M&A boosts a few individual names. Among them, Germany's Stada, after the generic drugmaker says it could get a renewed bid from private equity players Bain Capital and Cinven.
    • Santander slips as it launches its cash call, pricing the rights issue at a 19 percent discount to its closing price yesterday, as it looks to fund the takeover of Banco Popular. 
    • Argos delivers for Sainsbury's as the U.K. retailer reports like-for-like sales ahead of forecasts, while cost-cutting improves its bottom line.
    • North Korea defies warnings from global leaders ahead of the G20 summit, firing a ballistic missile into Japanese waters, and saying it has the capability to strike anywhere in the world
  • Sweden's Riksbank announces it has kept its repo rate unchanged at -0.5 percent. 
     
    The central banks bond purchases are going according to plan.  It says the buying of government bonds will continue during the second half of 2017, as decided in April.
     
    The central bank does not expect a first rate increase until the middle of 2018. However, higher inflation and lower risks from abroad mean the bank is less likely to cut the rate.
  • The dollar has jumped half a percent against the Swedish krona after the Riksbank announced it was keeping rates on hold.
     
     
    The krona has also weakened by 0.4 percent against the euro.
     
     
  • The German DIHK Chamber of Commerce says German companies are expected to create at least 200,000 jobs globally in 2017, of which 40,000 will be in the U.S.
     
    However, the Chamber says it cannot rule out a trade war with the U.S. 
     
    The Chamber expects German exports to fall 5 percent in 2017 and sees U.S. exports to grow 7 percent.
  • Samsung is developing a voice-activated speaker to compete against Amazon's Echo, according to Dow Jones citing sources.
     
    The speaker is in the conceptual stages, but would be powered by its virtual assistant Bixby. Delays to developing an English-language version of Bixby is slowing the speaker's progress.
  • German June new car registration was down more than 3 percent to around 328,000 vehicles. This was due to one fewer business days, according to Reuters citing a source.
     
    January to June, new car registrations are up 3.1 percent at 1.787 million vehicles.
  • James Rubin, former U.S. assistant secretary of state for public affairs in the Clinton Administration from 1997-2000, discusses the position of the U.S. on the World Stage.
     
    Many people forget, the Declaration of Independence, as much as it was independence from the British, it was a call to the world for help as a nation state. And the French and the Spanish took us this call. Without the French and the Spanish, America never could have defeated the British and come into being.
     
    That’s why the United States has always understood its role internationally. Sadly, tragically, hardly a surprise, with an inexperienced, rather vulgar man as our president, respect for the United States and its leadership role is collapsing.
     
     
     
  • James Rubin, former U.S. assistant secretary of state for public affairs, says Donald Trump is besmirching the U.S. 
     
    Trump will be meeting Russian President Vladimir Putin at the G20 summit later this week. Rubin shared his thoughts on the meeting.
     
    Putin is one of the only people on the planet that Trump hasn't criticized. He's criticised Republicans, Democrats, leaders all over the world. For some reason, and we don't know what it is, but it is odd, when Putin is doing things that are anti-American and not in our interest, Trump won't criticise him. 
     
    What will happen behind closed doors? I'm hopeful that his team will put him in a position where he does the right thing, but I have no way to be confident about that.
     
     
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