World Markets Live - July 6 - CNBC Live Events

CNBC Live Events

World Markets Live - July 6

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

    The Bank of France Governor Villeroy says complying with the public deficit target of 3 percent of GDP is crucial if only to ensure France's credibility in Europe, according to Reuters. He adds that the country faces sovereign debt shock and competition risks if it can't repair its finances.
    He says increasing social security contributions is not the answer, but certain tax cuts should be deferred if not financed. He adds that Macron's planned saving of 60 billion euros are a minimum.
    U.K. foreign minister Boris Johnson says North Korea's actions are reckless and illegal. He told BBC radio that it is important the world stands together against its actions.
    He adds that China must go further on dealing with North Korea.
    The Swiss consumer price index dropped 0.1 percent month-on-month in June versus a forecast of no change. Year on year the index is up 0.2 percent against a forecast of 0.3 percent.
    China's foreign ministry says it calls on all sides to remain calm and exercise restraint over North Korea. The ministry says China is fully implementing UN sanctions on North Korea, Reuters reports.
    Rick Lacaille, global chief investment officer at State Street Global Advisors, is discussing trends in investing and inflows are high despite valuations.
    What are companies doing? They’re delivering pretty good results. There’s relatively low correlation between sectors and individual companies which is a pretty benign environment for stock picking.
    The reason people are putting money in is not desperation. It’s not that there’s fleeing from very low yield in fixed income. I think they’re looking at growth, they’re looking at what companies are able to deliver and they’re seeing, at least at the moment, there’s not a catalyst for a sharp change in economic fortunes.
    Recessions are always hard to predict, but we’re not nearing the end of the cycle in a very visible way.
    These are the main headlines following the market open:
    • European markets trading lower, as the latest Fed minutes show debate over inflation's impact and shrinking the balance sheet.
    • The owner of Primark looks like it's dressed for success. AB Foods rockets to the top of the Stoxx 600, as it says its outlook has improved, thanks to strong performance in its clothing chain, and a lower sterling.
    • Damaged goods! Reckitt Benckiser shares take a hit, as it lowers its growth forecast, citing disruption from a recent cyber attack.
    • Investors show Sodexo little hospitality. Shares in the French catering company fall after it lowers its sales guidance, as under performance in its U.S. healthcare and university business weighs on the third quarter.
    The U.K. Financial Conduct Authority's CEO Andrew Bailey sales restricting financial services trade after Brexit is not inevitable. He says authorities should not dictate the location of financial firms after Brexit.
    He says U.K.-EU co-ordination is needed to keep financial markets open after Brexit. This co-operation could be based on comparability, rather than exactly mirroring financial rules.
    Bailey says this as several financial firms announce their plans for the future. Some have announced their intention to closing or reducing their London offices and open subsidiaries within the EU. Deutsche Bank was reported on Wednesday to be preparting to move large parts of its business in London to its hometown of Frankfurt.
    Swedish home prices rose 4 percent in the period April to June, according to the country's stats office.

    Ahead of Trump visit, Germany voices concerns over a trade war between US and Europe

    With President Donald Trump due to arrive in Germany later on Thursday, a lawmaker in the country has voiced concerns over a potential trade war between the U.S. and Europe as a result of Trump's protectionist policies.
    The U.K. Financial Conduct Authority's CEO Andrew Bailey  says he hopes EU proposals on euro clearing will lead to a sensible and pragmactic implementation.
    He says financial firms will need a transition period after Brexit in order to continue with current trading arrangements.
    A spokeswomen for Russia's foreign ministry says the U.S. State Department allegations of forced labour camps in Russia using North Korean workers is "fake news."
    The ministry says the U.S. is trying to frustrate cooperation between Russia and North Korea. The spokeswoman adds that the use of North Korean workers in Russia is legal and does not violate any U.N. resolutions.
    Turkish President Tayyip Erdogan is reiterating his support for Qatar, saying the demands against the isolated state are unacceptable. Speaking to France 24, he said he would only close Turkey's military base in Doha if Qatar wants it to.
    Mercedes-Benz reports passenger car sales are up 4.3 percent in Europe, 28.3 percent in China and 1.8 percent in the U.S.

    The company says June global car sales for the group are up 10 percent on the year to 221,874 units.
    Polish President Duda is speaking alongside President Trump. He says he and Trump have spoken about defence and other issues. He says Trump is thinking seriously about Poland's security.
    Trump calls on all nations to confront North Korea and publicly demonstrate to North Korea that there are consequences for its "very, very bad behaviour". 
    Trump says we will confront the threat from North Korea very strongly. 
    Trump says he hopes many more shipments of LNG will come to Poland. The first was shipped in June. Trump hopes maybe the U.S. can get the price for the gas up, saying Duda is a tough negotiator.
    Polish President Duda says after the conclusion of negotiations there will be a long-term arrangement for LNG gas shipments from the U.S.
    Duda says Poland could become a hub for channelling gas to the rest of Europe.
    He says the future is very "rosy and bright" on this topic.
    Trump says the U.S. will continue to work with Poland and keep troops there, but they did not discuss any guarantees on that.
    President Trump says it could have been a lot of other people, not just Russia, interfered with the election.
    He says election interference has been going on for some time.
    With German bund yields testing resistance, Steven Major at HSBC says the yields is beginning to reflect anticipation of an extremely gradual reduction in ECB policy accommodation.
    Complacent long positions have been shaken out of the Bund market following what appears to be a change in central bank focus. Valuations were in any case rich, regardless of recent disinflation.
    We see this as the start of the move towards our year-end target of 90 basis points for 10-year Bunds and present related trades. 
    The German bund yield is close to the 50 basis point resistance level today.
    Chinese President Xi says China is committed to the de-nuclearisation of the Korean Peninsula. He says the issue must be settled through dialogue. That's according to Reuters citing Xinhua.
    Earlier this morning, it was reported that Xi told the South Korean president that China supports South Korea's efforts to resume talks with North Korea. He urges South Korea to clear obstacles to bilateral ties and handle relevant issues properly.
    President Trump is now making a speech. He says the U.S. is proud to help with the energy requirements of the three-seas nations.
    He says the U.S. will never use energy to coerce countries. He says the U.S. is committed to open and fair trade.
    President Trump is making a speech participating in the three seas summit. He says the U.S. has become a great exporter of energy and he hopes nations will make use of this.
    He says the U.S. will be the strongest ally and partner to the nations at the summit.
    EU antitrust regulators are charging Merck, Sigma-Aldrich, General Electric and Canon for providing misleading information during their merger deals.
    They say Merck and Sigma-Aldrich failed to tell regulators about an innovation project involving chemicals.
    General Electric is said to have failed to provide information on R&D activities related to the LM Wind Power deal.
    Finally, Canon is accused of acquiring Toshiba Medical Systems before securing regulatory approval for the deal.
    Merck, Sigma-Aldrich, General Electric and Canon have been accused of providing misleading information during their merger deals.
    The EU Competition commission can fine companies up to 1 percent of global revenue for misleading regulators and 10 percent of global revenue for implementing deals prior to registration with regulators. The EU is opening a probe into Canon's acquisition of Toshiba Medical Systems before notifying regulators.
    The EU says the investigation wont have an impact on the regulators previous decision to clear the three deals.
    U.K. police says they believe other people were potentially involved in the Manchester Arena attack, according to reports from Sky News
    A man set off a bomb in Manchester Arena on 22 May 2017, killing himself and 22 others, after a concert by Ariana Grande.

    World needs to work together as G-20 deadline for economic growth goal looms, says Angel Gurria

    Encouraging constructive collaboration on a range of topics is key for the OECD secretary general.
    German industrial factor orders data disappointed today, coming in at 1 percent in May, below the consensus forecast of 1.9 percent. 
    Tomasz Wieladek, analyst at Barclays, says domestic orders were the largest drag on orders.
    Foreign orders rose by 3.1 percent m/m. Foreign orders were mostly driven by orders outside the euro area, which rose by 4.0 percent m/m, while euro area orders just rebounded by 1.7 percent m/m. This confirms our view that the German economy remains highly export dependent, and hence highly vulnerable to any Brexit-related slowdown in the UK or US protectionism. 

    Factory orders are the most reliable leading indicator of future industrial production. Their relatively weak performance in Q2 so far points to a weakening in Q3 17 GDP growth, consistent with our view that growth will slow to 0.4 percent q/q in Q3 and Q4 17, after 0.5 percent q/q in Q2 17. 
    ECB's Praet says maintaining a steady hand continues to be critical to fostering a durable convergence of inflation towards our monetary policy aim. Praet says the solid upswing continues to broaden across sectors and countries.
    Praet further adds recent survey data points to a strong start to the second quarter. That's according to Reuters.
    UK says it summoned North Korea Ambassador on Wednesday to condemn missile launch. That's according to Reuters.
    Qatar Airways Chief Executive Akbar al-Baker said on Thursday the Doha-based carrier would soon start buying shares in American Airlines "depending on the share price." That's according to Reuters.

    The state-owned company notified American Airlines last month that it was interested in buying up to 10 percent of its shares.
    Al-Baker told reporters in Dublin that Qatar Airways would buy up to 4.75 percent, despite a cool response given last month by the American Airlines CEO to its plan, once it has regulatory approval.
    U.S. President Donald Trump described Poland as an exemplary ally in building defences to counter Russian "destabilising behaviour", while appearing to encourage Polish defiance towards the European Union.

    Trump, en route to a potentially fractious G20 meeting in Hamburg, Germany, urged western NATO allies in Europe to spend more on defence, drawing a comparison with Poland which meets the agreed target of two percent of annual economic output.

    The brief visit to Warsaw was billed as an opportunity for him to patch up relations with European allies after a tense alliance summit in May.
    Trump said the United States and Poland shared similar values.
    We've discussed our mutual commitment to safeguarding the values at the heart of our alliance: freedom, sovereignty and the rule of law, he said in a joint press conference after meeting Polish President Andrzej Duda.
    We are working with Poland in response to Russia’s actions and destabilizing behaviour. And we are grateful for the example Poland has set … by being one of the few nations that actually meets its (NATO’s) financial obligations.
    U.S. Federal Reserve members were split on the inflation outlook and how to factor it into the timing of future interest rate hikes. That's according to minutes from the FOMC's June meeting released yesterday.
    Michael Moran, from Daiwa Capital Markets America, says the minutes provided some insight into the timing of future monetary policy decisions.
    U.S. Federal Reserve members were split on the inflation outlook and how to factor it into the timing of future interest rate hikes. That's according to minutes from the FOMC's June meeting.
    “Several” meeting participants wanted to announce the start of the process in a “couple of months,” implying an announcement in September. Others wanted to wait some time in order to better assess the economic and inflation outlook, but even the group that wanted to delay saw the announcement occurring later this year.
    Thus, the start-date and the beginning of balance sheet normalization seem almost certain this year. We’re favoring an announcement in September and the beginning of the effort in October.
    The U.S. jobless claims rose 4,000 to 248,000 in the week to July 1. Continuing claims rises 11,000 to 1,956,000. The previous week's jobless claims number of 244,000 was unrevised.
    U.S. stock market futures remain weaker following the rise in jobless claims and the weaker-than-expected ADP payrolls number.
    The U.S. May trade deficit narrowed to $46.51 billion from April's revised deficit of $47.59 billion. The consensus forecast was for the deficit to fall to $46.2 billion.
    May exports rose 0.4 percent to $192.03 billion. Imports declined 0.1 percent to $238.54 billion.
    Markets in Europe are trading lower as investors digest comments from President Donald Trump and focused on minutes from key central banks.
    Oil rose on Thursday, recovering some ground after a surprisingly upbeat picture of U.S. demand halted the previous day's steep slide, although the prospect of oversupply in 2018 has prompted yet more analysts to cut their price forecasts.

    Brent crude futures were trading up 74 cents, or 1.6 percent, at $48.53 per barrel by 8:14 a.m. ET.
    U.S. markets are now open for trading with all three indexes moving south as tech stocks fall and investors digest Fed minutes:

    US stocks open lower as big tech stocks fall

    CNBCU.S. stocks opened lower on Thursday as a fall in the technology sector dragged down the broader market.
    Moody's says global policy uncertainty has eased in some areas since the start of the year, diminishing the threat to growth. The ratings agency says in Europe, risk of another major European economy leaving EU is no longer immediate concern with election of Macron as President of France. 
    Moody's further adds that the risk to global trade and economic growth from a pursuit of protectionist policies in the US also seems to have diminished for now. That's according to Reuters.
    European stocks are now closed for trading. The pan-European Stoxx 600 has closed sharply lower as investors eye the G-20 meeting. Here's a look at the performance of Stoxx 600 today:
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