World Markets Live - July 5 - CNBC Live Events

CNBC Live Events

World Markets Live - July 5

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

    Here are the top headlines this hour:
    • Monte dei Paschi unveils a drastic restructuring plan as Rome pumps more than five billion euros into the failed bank, formally taking it under state control.
    • It's buying time in the retail sector. Adidas and Moncler catch a bid thanks to newly issued buy ratings, while a new CEO gets to work at Burberry.
    • Qatar signals its open to talks, but warns it will not accept any intervention in its domestic affairs, as Saudi Arabia and its Gulf allies get ready to meet to discuss their demands on Doha.
    U.K. new car registrations is down 4.8 percent year on year. New diesel car sales are down 14.7 percent in June. Total private sales are down 7.8 percent and fleet sales are down 2.4 percent.
    Arndt Ellinghorst, head of global automotive research at Evercore ISI Group, says these numbers are better than expected.
    We forecast the market to be down 8 percent this year.
    As you mentioned, consumer uncertainty is pretty high, consumer confidence is down, so naturally you would expect car sales to fall, but car makers are offering huge discounts so that’s driving people into showroom rights now, but that drop of 4.8 is better than we expected.
    Adidas shares have gotten a lift after HSBC raised its stock rating to buy from hold.
    In other retail re-ratings, Zalando has been dropped from Goldman Sachs' pan-Europe buy list.  And Jefferies has initiated coverage of Moncler and Yoox Net-a-Porter, giving both buy ratings.
    International Energy Agency chief Fatih Birol says the global oil market should rebalance in the second half of the year under the present conditions.
    Speaking on the sidelines of an Energy Institute event, Birol warned, however, that further output increases from producers Libya and Nigeria could complicate things.
    John Abbott, global downstream director at Shell, discussed coping with low oil prices.
    Shell looks at a range of oil prices and quite often we talk about lower for longer. Really the longest term strategy is the thing that is really important for Shell. 2016 was a year for Shell which was a complete reset with the BG integration and we saw oil prices come down after that. So we said, look, we need to set up a world-class investment case for Shell. What does it look like for the next 5, 10, 15 years? We set very clear free cash flow targets and return targets.
    Abbott says the company has achieved good free cash flow performance this year.
    We'll be live from the World Petroleum Congress next week, speaking to the top oil company chiefs, and leading OPEC and non-OPEC energy ministers.
    Tencent shares have just started recovering slightly, after falling more than 4 percent in yesterday's session. This after the Chinese tech giant said it was limiting the play time for younger gamers for one of its most popular games: "Honour of Kings".
    A child plays online game "Honor of Kings"

    The move is aimed at curbing addiction among children, something the company and its peers have come under pressure for. "Honour of Kings" has over 50 million daily active users and is Tencent's top grossing game.
    Earlier today, Deutsche bank raised its price target for Tencent by 7.4 percent to HK$320 and rated the stock a buy.
    Euro zone May retail sales rise 0.4 percent month on month and 2.6 percent year on year.
    April retail sales were revised to 2.6 percent from 2.5 percent previously.
    Norway June seasonally adjusted housing prices fell 0.7 percent versus May. Housing prices are up 6.3 percent year on year.
    The Kremlin says President Putin will use his meeting with Trump to explain Russia's stance on Syria and Ukraine, Reuters reports.
    The meeting, which will take place during the G20 summit, will be limited in time. The meeting is to explore whether there is a possibility and readiness for Russia and U.S. to fight terrorism together.
    Moscow hopes the meeting will establish an effective working dialogue between the two leaders, which is needed to resolve mounting conflicts around the world.
    U.K. 30-year gilt yields hit 1.911 percent earlier in the session, this is its highest level since February. The yield is up 4 basis points currently.
    Worldpay shares are up more than 5 percent today, following on from yesterday's strong gains.
    The payment processing company announced yesterday it had been approached by two separate companies bidding to take it over.
    Today's share price spike is apparently due to a Sky report that the company's board is backing an £8.5 billion deal with Vantiv, according to Reuters citing traders.
    Lloyds Bank has announced a series of organisational changes in anticipation of a new strategic plan. Here are some of the appointments.
    • Juan Colombas, the executive director, is appointed to a new role as chief operating officer.
    • George Culmber, chief financial office and executive director, will take over the legal and strategy teams.
    • Zaka Mian is appointed group director of transformation.
    • Vim Maru is appoint to group director of retail.
    Rreserve bank of Australia board member Ian Harper says now is not the time to "scare the horses" with hawkish guidance, Reuters reports. This after the central bank yesterday voted to keep rates on hold.
    Harper says is it a case of "steady as she goes" on policy and there is no reason to rush policy changes, or follow other central banks' hawkishness.
    Harper says Australia's recover is on track, but the job market slack is notable and a lower Australian dollar would be welcome. He says it is not clear if inflation is rising.
    The Australian dollar dropped sharply against its U.S. counterpart yesterday on the central bank decision. It is down more than 1 percent against the U.S. currency so far this week.
    President Trump will be visiting Germany for the meeting of world leaders at the G20 summit later this week. But first, he will be visiting Poland.
    He is visiting the Eastern European country at the invitation of President Andrzej Duda, to "reaffirm the U.S.' steadfast commitment to one of its closest European allies and emphasize the administration's priority of strengthening NATO's collective defense."
    Presidents Trump and Duda discuss bilateral and regional issues, while President Trump also delivers a 'major speech' and attends the Three Seas Initiative summit.
    The president takes off in Air Force 1 at 07:40 a.m. EDT and will in Warsaw around 4:15 p.m. EDT.
    Polish President Andrzej Duda stands to the right of President Trump during the May NATO meeting.
    by luke.graham edited by Spriha Srivastava 7/5/2017 9:55:26 AM
    Strategic ties between Russia and China were appraised in glowing terms as Chinese President Xi Jinping wrapped up a two-day state visit to Russia, concluding with at least $10 billion in agreements.

    Xi, who met with Russian President Vladimir Putin during the trip, told Russian media that relations between the two countries were currently at their "best time in history." The Chinese president also said Russia and China were each other's "most trustworthy strategic partners," Xinhua reported.

    ‘Best time in history’ for China-Russia relationship: Xi and Putin boost ties

    CNBCStrategic ties between Russia and China were appraised in glowing terms as Chinese President Xi Jinping concluded a two-day visit to Russia.
    U.S. stock index futures pointed to a mixed open on Wednesday morning as traders awaited the release of the Federal Reserve's latest meeting minutes.

    On the data front, Wednesday will see factory orders for May released at around 10 a.m. ET, while the much-anticipated release of last month's FOMC minutes is set for around 2 p.m.
    European markets were mixed Wednesday as Independence Day celebrations in the U.S. kept trading activity muted across the world and geopolitical tensions continued to heat up.
    Worldpay Group and Vantiv Group agree to key terms of possible offer. That's according to Reuters.
    by Spriha Srivastava edited by luke.graham 7/5/2017 11:39:48 AM
    U.S. credit card processing firm Vantiv announced plans to merge Worldpay, the U.K.'s largest payment processing firm, on Wednesday. 

    The deal comes a day after Worldpay announced that it had been approached for an acquisition separately by both Vantiv and JPMorgan.

    Worldpay is Europe's leading payment processor with Vantiv seeing the deal as a way to boost its presence in region.

    Vantiv shares were halted premarket while Worldpay shares, which trade in London, were roughly flat after the deal was announced.

    Credit technology firm Vantiv to merge with Worldpay

    CNBCU.S. credit card processing firm Vantiv announced plans to merge Worldpay, the U.K.'s largest payment processing firm, on Wednesday.
    North Korea's claims that it successfully launched its first intercontinental ballistic missile (ICBM) Tuesday are the latest instance of political posturing to emerge from President Kim Jong-Un's totalitarian regime, but they also bring the likelihood of an attack on the U.S. squarely into focus.

    Though most experts agree that the closed state does not yet have long-range nuclear weapon capabilities, U.S. Secretary of State Rex Tillerson said Tuesday that the launch indicated a "new escalation of the threat" and analysts see the country's military advancement gaining pace.

    Tuesday's tactically timed Independence Day launch is in many ways a minor step forward from a similar test in May, the latest in a series of provocations. The new Hwasong-14 rocket added approximately eight minutes of flight time, or a further 90 miles in overall distance, to its predecessor.
    Click here to read the full story.
    JP Morgan Chase has announced it does not intend to make an offer for payment company Worldpay, according to Reuters.
    The bank says it was at the very early stages of considering whether or not to make an offer or the terms of any offer for Worldpay.
    However, Worldpay has now agreed to key terms of a deal with Vantiv.
    Despite Qatar aiming to ramp up its lucrative LNG (liquefied natural gas) exports in the midst of a tense diplomatic crisis, ratings agency Moody's has cut its outlook on the country's sovereign credit to "negative" from "stable".

    The ratings agency said the change was due to the economic and financial risks arising from the ongoing dispute with Saudi Arabia and its allies, which accuse Qatar of supporting terrorism, an allegation the country has denied.
    The likelihood of a prolonged period of uncertainty extending into 2018 has increased and a quick resolution of the dispute is unlikely over the next few months, Moody's said.

    Qatar’s outlook cut by Moody’s amid Saudi-led blockade even as Gulf country ramps up gas output

    CNBCQatar aimed to ramp up its LNG exports in the midst of a diplomatic crisis as Moody's cut the outlook on its sovereign credit to negative.
    Thirty minutes to markets close and stocks are trading slightly higher as investors wait for FOMC minutes:

    European markets continue higher; Qatar announcement eyed; Worldpay slips 10%

    CNBCEuropean markets continued higher on Wednesday afternoon, as investors assessed geopolitical tensions and a looming announcement regarding Qatari sanctions.
    European markets are now closed for trading the pan-European Stoxx 600 has ended the day slightly higher as traders keen a keen eye on FOMC minutes:
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