World Markets Live - June 13 - CNBC Live Events

CNBC Live Events

World Markets Live - June 13

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

    A reminder of our top stories this morning:
    • The tech sell off stalls in Europe as stocks shrug off the losses on Wall Street with nearly all the major equity markets moving higher.
    • Attention now turns to the Fed, which is widely expected to raise rates tomorrow. Former board member Randy Krozsner tells CNBC that Janet Yellen and Co are on a path to normalise, despite recent weakness in economic indicators.
    • "I got us into this mess and I will get us out of it" says U.K. Prime Minister Theresa May as she prepares to meet DUP leader Arlene Foster in a bid to secure her parliamentary majority. 
    Theresa May is due to meet with Democratic Unionist Party leader Arlene Foster in a bid to secure the DUP's support for her minority government.
    Conservative Party figures have hinted the Queen's speech may need to be delayed, if today's talks fail to result in a deal.
    CNBC's Willem Marx says the agreement will be a vote by vote agreement rather than any formal coalition.
    Speaking Monday, Arlene Foster outlined her main ambition to protect the status of the United Kingdom:
    We are going into these talks with the national interest at heart. The Union as I said before is our guiding star, we believe in the Union, we believe in a national stable government and that will be what is at the forefront of our mind going into these talks. 
    Willem says it is expected Foster will come to Theresa May with demands for money that can fund areas such as education, transport and health in Northern Ireland.
    The Nasdaq has posted its worst two-day streak of 2017, as tech stocks continue to drag on stock markets. Increased volume in some of the bigger names like Apple and Amazon pulled the sector to its first back-to-back daily loss in nearly 2 months.
    The Nasdaq is still up nearly 19 percent since the U.S. Presidential election in November, driven higher by the FAANG stocks.
    Apple led the declines on Wall Street and has lost over 6 percent in the last two trading days as some analysts have become increasingly concerned over its valuation.
    Goldman Sachs warns the 'fairy tail scenario' behind the tech rally is unlikely to last, while Morgan Stanley and UBS have also cited overvaluation worries as a reason for the pullback. 
    Neil Campling, Head of Global TMT Research at Northern Trust Capital Markets is on set.
    He describes the correction as "healthy".
    At the end of the day you have 5 stocks that have accounted for 40 percent of the S&P this year.  
    It gives an opportunity for investors to take part in companies that they may have felt they missed out on.
    Campling says the key things like video game growth, machine learning and mobile phone cycles are still in place and, therefore, chip making companies remain an attractive prospect.
    Embattled electronics giant Toshiba faces yet another lawsuit. A group of foreign investors claims nearly 400 million dollars in damages from the firm's accounting scandal. Toshiba announced today in a statement that it had received the legal complaint on Monday.  
    With the latest addition, the firm now faces 26 lawsuits regarding the accounting scandal, and the total amount of damages being sought has reached over 9 hundred million dollars.  Toshiba had already booked losses stemming from the lawsuits, but it said it will increase the amount for the year ended March.
    Toshiba is scheduled to hold a stakeholders' meeting later this month to announce its earnings report for the past fiscal year. But it looks increasingly unlikely the firm will secure its accounting firm's approval for its books, highly unusual for a listed firm of its size. 
    Toshiba Corp CEO Satoshi Tsunakawa bows as the start of a news conference at the company's headquarters in Tokyo, Japan, April 11, 2017.
    Meanwhile, bidding is ongoing for Toshiba Memory, Toshiba's most valuable asset.  Its asking price is around $18 billion dollars.  Western Digital who is Toshiba's partner has sought arbitration to block the sale, initially claiming that it is entitled to a controlling stake, refusing to approve any transfer of operations to another company.  Taiwan's component maker Foxconn and US semiconductor maker Broadcom, as well as a number of investment funds are all jostling for the prize.  
    In a new twist, media reports say US investment fund, Bain Capital may be planning to join forces in a US-Japan coalition to bid for Toshiba Memory.  
    U.K. inflation for May has come in 0.3 percent higher month-on-month and is 2.9 percent higher year-on-year.
    That edging above forecasts. The April year-on-year figure was 2.7 percent.
    The Office for National Statistics says that May print marks the highest level since June 2013.
    In reaction, sterling has risen and is now firmly back into the 1.27 handle.
    Assets under management among global public investors are up 1.4 percent to more than 33 trillion dollars. That's from a new survey by the Official Monetary and Financial Institutions Forum. Global central banks, including the Federal Reserve, increased their net gold holdings to more than 377 tonnes last year. 
    Danae Kyriakopoulou, Chief Economist at OMFIF says gold holdings have been coming down until the great financial crisis in 2008 when the trend reversed as the metal was sought as a hedge against risk.
    Kyriakopoulou says pension funds did better than more restricted institutional investors in 2016 as they took advantage of a strong allocation shift to equities.
    In terms of risk, Kyriakopoulou says in the OMFIF survey the old favorites of Trump, Europe and Brexit remain the most pressing issues on investors' minds.
    A pre-trial hearing takes place in London today for 11 traders accused of manipulating the Euribor. It's the latest case in a long-running investigation into the rigging of benchmarks by banks in the City of London.
    On set is Alexis Stenfors from Portsmouth Business School, he is the Author of a new book called the Barometer of Fear.
    Alexis was given a prohibition order from the FCA in 2010, banning him from trading for 5 years and his book tells the inside story of Libor fixing in London and his own mis-marking scandal. 
    It should be noted he was not found guilty of rigging benchmarks but says he was the counterparty to people who are under investigation.
    Stenfors says the mentality of a trader is shaped by the culture of banks expecting employees to make money "whatever it takes".
    He says he still feels a lot of guilt to his family, friends and the bank.
    Stenfors says many traders went on trial but without the banks taking responsibility and he has difficulty with that division of blame.
    Stenfors argues that it is not just about paying a fine to regulators. It needs to be admitting that our culture was wrong and not just saying "it is a few bad apples". 
    The ZEW Institute has released its latest take on the German economy and has the following for June.
    The current conditions came in at 88.0 versus 83.9 in May. Economic expectations was less bullish at 18.6 versus 20.6 in May but ZEW says German firms remain positive about the prospects for German growth.
    Taking the latest temperature of the euro-dollar pair and it is sitting around flat for the day at 1.1206.
    This is taking deference to a new level.

    Trump makes bizarre claims at press event as Cabinet members take turns praising him

    CNBCOn Monday, the president ran a press conference that appeared designed to bathe him in praise in front of TV cameras.
    U.S. Fintech firm Fiserv is offering to buy UK mobile banking firm Monitise for  £70 million.
    With over 400 employees, Monitise reported annual revenues of £67.6 million for the financial year ending 30 June 2016, but has never turned a profit.
    The Fiserv offer represents a premium of approximately 26.1% to the Monday closing price of  2.3 pence per Monitise Share.
    Gold is holding its ground today. Investors are exhibiting a wait and see approach as the two-day U.S. Federal Reserve meeting culminates in a decision tomorrow evening.
    The Fed is thought likely to hike interest rates, but the investors will want to gauge the fed's thinking on shrinking the $4,5 trillion dollar balance sheet.
    Any surprising desire for  speed could rattle markets and may give gold a bid.
    U.S. stocks closed lower on Monday amid renewed pressure on technology stocks.
    The Nasdaq composite and the Nasdaq 100 indexes fell 0.52 percent and 0.59 percent respectively, with the composite posting its biggest two-day slide since December.
    The S&P 500 slipped 0.1 percent, with information technology dropping 0.81 percent to lead decliners. The Dow Jones industrial average fell about 35 points, with Apple contributing the most losses.
    Investors and traders will keep a close eye on the tech sector Tuesday as the best-performing space in 2017 continues to fall. Wall Street will also look ahead to the Fed meeting. 
    Futures have improved in recent moments to suggest a positive open. 
    According to Russian media, Vladimir Putin has been on the phone with the Saudi king to discuss the ongoing isolation of Qatar.
    The same state media also report that the Qatar action is not helping solve the crisis in Syria or fight terrorism.
    That would seem counter to views espoused in the White House.
    The FTSE in London is only just above the waterline but the rest of Europe's bigger domestic stock markets are having quite a nice morning, thank you.
    Media stocks were among the best performers in late morning deals. Cable operator Altice USA will be valued at up to $22 billion after announcing details of its stock market listing. Shares of the Netherlands-based Altice NV were slightly higher.
    Health care also moved higher after some rating upgrades. Morgan Stanley said it is confident that Luxottica and Essilor will create a global eyewear powerhouse. The later rose 1.2 percent in early trade.
    Italian banks were also higher on Tuesday after the country's economy minister Pier Carlo Padoan said a deal to rescue two Italian banks is close. Ubi Banca was up by 5.4 percent.

    The British outsourcing group Capita said Tuesday it intends to grow profitability and secure further contracts in the second half of the year. The announcement took the stock to the top of the European benchmark, up by 12 percent.
    The German economy minister, Brigitte Zypries, has told reporters that the situation at Air Berlin is "precarious".
    Zypries said otherwise there would not have been requests for loan guarantees.
    2010 photo an aircraft of Air Berlin taking off at Tegel airport in Berlin, Germany.
    OPEC's oil production jumped in May, despite the exporter group agreeing last month to extend its six-month deal to cap output into 2018.
    Production across OPEC rose by about 336,100 barrels per day to 32.1 million bpd, according to secondary sources, led by increases from Libya and Nigeria, which are exempt from the deal, and Iraq.
    In the report, OPEC struck a fairly upbeat note on the global economy:
    The gradual recovery of the world economy continues and stronger-than-anticipated growth in 1Q17 has lifted the world GDP growth forecast for 2017 to 3.4%, up from the 3.1% growth seen in 2016.
    This positive momentum is expected to continue into the second half of the year.
    Oil hasn't offered too much direction in the wake of the release.
    OPEC's oil production jumped in May, despite the exporter group agreeing last month to extend its six-month deal to cap output into 2018.

    OPEC oil output jumps 336,000 barrels a day in May on increases in Libya, Nigeria, and Iraq

    CNBCOPEC's oil production jumped in May despite the exporter group agreeing last month to extend its six-month deal to cap output into 2018.
    Sterling extends gains to hit day's high of $1.2736, up 0.6 percent on day:
    The European Union plans to give itself powers to move euro clearing business away from London's financial sector to the EU after Brexit and adopt a model closer to that operated by the United States, a source close to the situation said.

    The financial industry has warned that forced "relocation" would split markets, bump up trading costs and diminish the status of the euro - as well as threaten thousands of jobs in the City of London.

    The draft law due to be published later on Tuesday would, as a last resort, force euro-denominated clearing business to shift from London to the bloc if the volume was deemed by Brussels to be systemically important, the source said.

    The bulk of clearing in euro-denominated derivatives is performed in London and involves a third party standing between two sides of a trade to ensure its smooth and safe completion.

    The European Central Bank (ECB) and euro zone policymakers have long wanted control over euro clearing, saying it is core to the single currency area's financial stability and would be outside the EU's regulatory sphere once Britain leaves the bloc in 2019.
    Gold held steady on Tuesday as investors remained cautious ahead of a two-day U.S. Federal Reserve meeting that is likely to provide hints on the central bank's interest rate policy for the remainder of the year.

    The Fed is widely expected to hike interest rates during the policy meeting beginning Tuesday, but the focus is on whether the central bank thinks the U.S. economy is robust enough to withstand further rate increases through 2017.
    Leader of Northern Irish Party Arlene Foster arrives in Downing Street for talks with British PM May.
    British Cabinet discussed the ongoing talks with the DUP to secure a confidence and supply arrangement. That's according to Reuters.
    Bond investor Bill Gross warned on Tuesday that investors should reduce their risk appetite, given the U.S. growth rate is stunted by secular forces "which monetary and even future fiscal policies seem unable to reverse."

    In his June investment outlook letter, Gross of Janus Henderson said: "Strategies involving risk reduction should ultimately outperform 'faux' surefire winners generated by central bank printing of money.
    It’s the real economy that counts and global real economic growth is and should continue to be below par, said Gross, who runs the $2.1 billion Janus Henderson Global Unconstrained Bond Fund.
    Gross has repeatedly said investors should not be tempted to buy high-flying equities and corporate bonds, given the possibility U.S. President Donald Trump may fail to enact policies to fuel growth of between 3 percent and 4 percent.
    Lucy Neville-Rolfe has just announced on Twitter that she has left her role in the UK government:
    U.S. stock index futures pointed to a higher open on Tuesday as technology stocks looked to bounce back.

    Nasdaq futures traded 10 points higher, with shares of Amazon and Google-parent Alphabet climbing in the premarket. Other big tech names like Facebook and Apple also saw their shares rise before the bell.

    Dow and S&P futures, meanwhile, rose 25 points and 3.75 points, respectively.
    Former British Prime Minister John Major says have to take care with the Northern Ireland peace deal. He says "I am concerned, wary and dubious about deal between Conservatives and DUP." That's according to Reuters citing BBC Radio.
    Prime Minister Theresa May could reach a deal to prop up her government with Northern Ireland's Democratic Unionist Party on Tuesday or Wednesday, the BBC's political editor Laura Kuenssberg said.

    Kuenssberg cited unidentified sources as saying that a deal was as likely as not tomorrow as today.
    Within 36 hours here will be government commanding an absolutely majority, she cited the sources as saying.
    Sears to cut 400 full-time jobs as part of ongoing restructuring
    US Producer Price Index was unchanged in May, as expected
    The U.S. Producer Price Index was forecast to be unchanged in May, after rising 0.5 percent a month earlier.
    The dollar held steady against a basket of currencies on Tuesday, with the focus on the U.S. Federal Reserve's two-day policy meeting, while the Canadian dollar rose after its central bank hinted interest rates could rise sooner than anticipated.

    The dollar index .DXY, which tracks the greenback against a basket of six major rivals, last traded at 97.245, staying above a seven-month low of 96.511 set last week.
    U.S. President Donald Trump will host South Korean President Moon Jae-in this month. Both the leaders are expected to discuss economic issues and North Korea. That's according to Dow Jones.
    Leader of Northern Irish DUP Foster has left Downing Street after talks with UK PM May. That's according to a spokesman for PM May.
    British Prime Minister Theresa May makes no comments to reporters outside Downing Street.
    General Election 2017 aftermath : News Photo
    Wall Street stocks are now open for trading, All three indexes are trading slightly higher as investors expect technology stocks to bounce back.
    Northern Irish DUP leader says on Twitter, talks with Prime Minister May going well, hope to successfully conclude soon. 
    Meanwhile, the BBC says no outstanding issues remain in UK PM talks with DUP.

    US stocks open higher as big tech bounces back from two-day slide

    CNBCU.S. stocks opened higher on Tuesday as technology tried to come back from their biggest two-day decline since December.
    There are no outstanding issues between British Prime Minister Theresa May and Northern Ireland's DUP, and a deal to support May's government has been largely agreed, the BBC reported on Tuesday, citing unidentified sources.

    May failed to secure an outright majority after Thursday's election and is aiming to strike a deal with the DUP to pass her legislative programme.

    May made no comment as she left talks with DUP leader Arlene Foster.
    U.S. President Donald Trump has just tweeted about Obamacare plan:
    UK PM May says clear country faces challenges including taking Britain out of the EU and keeping country safe. She says as we face challenges, let us come together in spirit of national unity. That's according to Reuters.
    Talks between British Prime Minister Theresa May's Conservatives and Northern Ireland's Democratic Unionist Party (DUP) on a deal to support May's minority government are going well and will continue on Tuesday, a senior Conservative source said.

    May met with DUP leader Arlene Foster at her Downing Street office earlier on Tuesday. The pair left separately, with May going to parliament for the election of the House of Commons speaker.

    They are ongoing, it hasn't broken up for the day. I'm not putting any timescale on when it will be done," the source told Reuters. "They are going well.
    British Prime Minister Theresa May has "largely agreed" a support deal with Northern Ireland's Democratic Unionist Party (DUP) which will enable her to prop up her Conservative government, according to BBC reports.

    May held talks with DUP members of parliament Tuesday afternoon to discuss a "confidence and supply deal" which will provide her with the backing needed to form a parliamentary majority.

    British leader May and Northern Ireland's party 'largely agree' support deal - BBC

    CNBCBritish Prime Minister Theresa May has "largely agreed" a support deal with Northern Ireland's Democratic Unionist Party (DUP), BBC reports.
    Thirty minutes to Europe close and stocks look like this:
    Head of Northern Ireland's DUP Party says hope we cab reach a conclusion with the UK government sooner rather than later. That's according to Reuters citing Sky News.
    European stocks are now closed for trading. The pan-European index has closed 0.5 percent higher as investors wait for a statement from Fed:
    Major European indexes have also closed with mixed performance across the board:
    And that's all from us here at World Markets Live. Join us tomorrow from 0600GMT for more news, views and analysis. Till then have a great evening and see you soon!
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