World Markets Live - June 19 - CNBC Live Events
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CNBC Live Events

World Markets Live - June 19

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

  • Britain has formally started negotiations with the European Union on Brexit. Here's what U.K. Secretary of State for exiting the European Union David Davis said:
     
    I’m here in Brussels today, to begin the next phase of our work to build a new, deep and special partnership with the European Union.

    But our thoughts this morning are rightly with the victims and families of the awful attack in London early this morning and with those who have lost loved ones in Portugal too in that terrible tragedy there.

    It is at testing times like these that we are reminded of the values and the resolve we share with our closest allies in Europe.
    For there is more that unites us than divides us.

    So while there will undoubtedly be challenging times ahead of us in the negotiations we will do all that we can to ensure we deliver a deal that works in the best interests of all of our citizens. To that end we are starting this negotiation in a positive and constructive tone, determined to build a strong and special partnership between ourselves, our European allies and friends.
  • Gold has hit a four-week low as the dollar held firm and the market waited for comments from a top Federal Reserve official on U.S. monetary policy, but prices were supported by the start of talks on the terms of Britain's departure from the European Union.
     
     
    Mihir Kapadia – CEO and Founder of Sun Global Investments, analyses the move in gold:    

    After a two day meeting, the Federal Reserve raised the Fed Funds Rate by 0.25 basis points to 1.5% . The move follows a record run of jobs growth in the US that has driven the unemployment rate down to its lowest level in 16 years. The current market confidence warrants for the Federal Reserve to continue its course for further rate hikes for the rest of the year, unless otherwise there are any signs of economic or employment weakening. 
     
    Monday markets look weaker for gold, having fallen to a near four week low as short-term interest rates rise.  Spot gold fell 0.1 per cent to $1,252.40 per ounce while US gold futures for August delivery fell 0.2 per cent to $1,254.20 an ounce. We expect spot gold to further weaken towards $1,240 per ounce.
     
  • Philips's share price is up more than 5 percent today, reaching a 15-year high on reports that activist fund Third Point is building a stake in the Dutch company. 
     
    According to sources reported by The Sunday Times, Third Point is looking to build a multi billion euro position in the company ahead of an activist campaign. Third Point has launched similar campaign against the management teams of Sotheby’s, Yahoo and Sony.
     
    Philips told CNBC it does not comment on market speculation or rumours.
     
     
  • Coming up to midday and the pan-European Stoxx 600 is up around 0.65 percent.
     
    The gains in the index are being driven by stocks in the basic resources and banking sectors. The top gainer on the index is Ocado; shares in the food retailer are rising due to speculation that a wave of M&A and consolidation will sweep the sector after Amazon acquired Whole Food Markets last week for $13.7 billion.
     
    Click or tap on the arrows to see the best and worst performers on the Stoxx 600.
     
     
    Here's how the individual bourses are looking.
     
     
  • Investors in the U.S. are paying close attention to the first meeting of the American Technology Council later today. Tech heavyweights from Silicon Valley will be meeting at the White House to share ideas on how the government can deliver better digital services.
     
    The council was created by President Trump on May 1 via executive order and is led by his son-in-law Jared Kushner. Microsoft CFO Chris Liddell will be attending, along with representatives from Alphabet, Apple, and Amazon.
     
     
  • The U.K. Treasury has announced Silvana Tenreyro has been appointed to the Bank of England's monetary policy committee.
     
    Tenreyro will replace Kristin Forbes, whose tenure on the MPC ends on June 30.
     
    Tenreyro will take office from July 7. She is an economics professor at the London School of Economics and received her M.A. and Ph.D. from Harvard University.
     
    Commenting on the announcement, Mark Carney, governor of the Bank of England, had this to say.
    I am delighted to welcome Silvana Tenreyro to the Monetary Policy Committee and am very much looking forward to working with her. 

    Her extensive and varied academic experience – on the monetary transmission mechanism, the dynamics of productivity, trade, housing issues as well as wage dynamics, to name just a few – will be invaluable to the Committee as it seeks to promote the good of the people of the United Kingdom through maintaining monetary stability.

     

  • The U.K and EU begin Brexit negotiations today. The EU referendum was held on June 23 last year, almost one year ago. The result caused a great deal of market and investment uncertainty, and Fidelity has tracked what have been the best and worst performing assets since the vote.
     
    Over the past year, several equity markets, including the U.K.'s FTSE 100, have seen record highs. Fidelity analysis shows that  someone who invested in the FTSE 100 on June 24 would have earned around a 26 percent return.
     
    The best performing asset class over the past year was Asia Pacific equities, delivering a return of 36.89 percent, followed by emerging market equities (36.23 percent return).
     
    The worst performer is cash, with a 0.44 percent return, and commodities, which ended in a loss of 0.12 percent.
     
    Rank
    Asset class
    % Returns
    1
    Asia Pacific Equities
    36.89
    2
    Emerging Market Equities
    36.23
    3
    European (ex UK) Equities
    35.75
    4
    Japanese Equities
    31.43
    5
    Global Equities
    31.01
    6
    US Equities
    30.15
    7
    UK Equities
    25.63
    8
    High Yield Bonds
    20.45
    9
    Emerging Market Debt
    15.81
    10
    Real Estate
    14.43
    11
    Corp Bonds
    9.87
    12
    Inflation-Linked Bonds
    8.15
    13
    Government Bonds
    2.32
    14
    Cash
    0.44
    15
    Commodities
    -0.12
     
    Tom Stevenson, investment director for Personal Investing at Fidelity International, says sterling's drop in forex markets has been a key driver.
     
    The fall in the pound has been the key driver of market returns in the UK over the past year and it will be the key driver of the economy and markets over the next 12 months.
     
    However, in the grand scheme of things, the U.K. plays a small part in the overall global economy and whatever the outcome of the Brexit negotiations, the U.S. economy will continue to recover, Europe will remain on the mend and emerging markets will continue to outstrip the growth in the developed world.
  • Dow futures are called higher by almost 80 points. This after the index finished flat on Friday.
     
     
  • U.S. Secretary of Commerce Wilbur Ross is appearing on CNBC alongside the U.K.'s Secretary of State for International Trade Liam Fox.
     
    Fox is in the U.S. to discuss future trading relationships between the U.K. and U.S.
     
    He says business conditions and developments in the U.K. and U.S. are of mutual importance. He says the U.K. provides a low regulation, low tax base of operations.
     
     
  • U.K.'s International Trade Secretary Liam Fox denies that there will be a race to the bottom by world governments in terms of cutting regulations, saying its not the number of regulations that is important, it's that they are the right regulations for markets.
     
    He says Prime Minister Theresa May still has full support from her party.
  • President Donald Trump is criticising the Democrats for opposing his administration.
     
    The president is due to meet with President Juan Carlos of Panama later today. They are expected to discuss the fight against organized crime, illegal immigration and drugs. 
     
    Meanwhile, tech heavyweights will be gathering at the White House for the first meeting of the American Technology Council, established by the president at the beginning of May.
     
    Members of the council include Jared Kushner, Chris Liddell and Reed Cordish, as well as the president, who is chairman; the Vice President; Secretary of Defense; Secretary of Commerce; Secretary of Homeland Security; Director of National Intelligence; OMB Director; Director of the Office of Science and Technology Policy; and U.S. CTO.
  • Britain's Prime Minister Theresa May has visited Finsbury Park earlier today, the location of where a van injured 10 people on Monday.
     
    Mrs May described the attack as sickening. In a speech at midday, she said hatred and evil of this kind will never succeed.
     
    She says extra police resources have been deployed to protect communities. She adds there has been far too much tolerance of extremism for many years, including Islamophobia.
     
     
  • The U.K.'s security minister says the man arrested for the attack outside a mosque in North London was not previously known to authorities in terms of extremism. 
     
     
  • U.S. stocks move higher at the open. The Dow is up nearly 70 points, close to this morning's future values call.
     
     
     
     
  • The Dow has hit a new all time high.
     
    Wal-Mart is leading the losers on the Dow. It faces increased competition after Amazon on Friday revealed a deal to buy Whole Foods Market in a deal worth around $14 billion.
     
     
     
  • The Nasdaq is up about 60 points, almost 1 percent, as investors move to buy technology stocks following recent dips.
     
    These are the stocks at the top and bottom of the tech-focused index.
     
     
     
     
  • The U.K. Treasury earlier today announced economic professor Silvana Tenreyro has been appointed to the Bank of England's monetary policy committee to replace Kristin Forbes, whose term in office on the MPC ends on June 30.
     
    Peter Chatwell, head of rates strategy at Mizuho International, says Tenreyro seems to be more dovish, based on her previous work.
     
    U.K. rates are still reflecting a more hawkish outlook due to last week's 5/3 vote, but we think these hawkish risks should fade as the new MPC composition is digested.
     
    We are of the view that hiking rates any time within the coming year - with the consumer losing purchasing power, the service sector losing confidence due to Brexit uncertainty, and the government still extremely shaky - would be an awful policy error and one which ultimately prolong the period of stagflation that the UK economy is likely to suffer.
     
    However, Peter says the views of member Jan Vlieghe represents a risk to a more balanced MPC.
     
    He collaborated with Forbes, along with Saunders, on the controversial paper that appears to be the basis of the more hawkish stance.
     
    Vlieghe is widely viewed as a dove, but we will be closely scrutinising his comments in case of any evidence of a view change, on the basis of his involvement with this paper.
     
    Sterling is flat against the dollar and euro today, and up against the yen.
     
     
  • Paris police are dealing with an incident near the Champs-Elysses, Reuters reports. 
     
    Police and firefighters have been seen at the Marigny theatre and the area is cordoned off, and police have evacuated the construction site at the theatre, according to reports.
     
     
  • An update: Paris police says a car driver hit a police van on the Champs-Elysees Avenue. The driver is under arrest.
  • The diplomatic isolation of Qatar continues in the Gulf.
     
    The country's foreign minister has come forward to say the country has still not received any demands from the Gulf states which have cut ties with Qatar, according to Reuters.
     
    The minister adds Qatar will not negotiate with the Arab powers until the economic boycott is lifted, and the country will not negotiate over its own affairs, such as foreign policy.
     
    If the crisis continues, the minister says Qatar will rely on Turkey, Kuwait and Oman, with Iran facilitating the passage of flights.
     
     
    Meanwhile, Qatar Airways CEO told Reuters the crisis has had a monetary impact on the airline, but growth is coming back. In fact, the CEO says the company has made an order for twenty 737 Max aircaft and has options for another 40 planes. The CEO says Qatar will soon make an application for an operating licence in India, and adds that the U.S. laptop ban has not had a big impact, nor will it last too long. 
  • Earlier, Paris police reported that a car driver hit a police van on the Champs-Elysees Avenue. Reuters reported the driver is under arrest.
     
    France's interior ministry spokesman says the driver's act appears to be deliberate. The spokesman says the driver was armed.
  • The U.K. and Eu have begun brexit negotiations today.
     
    One contentious issue will be how to manage the border between Northern Ireland (which is part of the U.K.) and the Republic of Ireland (which is part of the EU).
     
    Britain's Prime Minister Theresa May says she is committed to finding a practical solution to the land border issue. May says her government is continuing discussions with Northern Ireland's DUP and will publish the details of any deal once it is agreed, according to Reuters.
     
    May adds that she wants to see a border as seamless as possible between the U.K. and the EU.
  • The ripple effect of Amazon's massive $13.7 billion acquisition of Whole Food Markets, announced last week, is still being felt in markets.
     
    Stock prices for other food retailers, such as Target and Wal-Mart continue to fall after posting losses on Friday.
     
    However, speculation of consolidation in other parts of the market has had a positive impact, for instance the share price of U.K. online supermarket Ocado is up 11 percent today.
  • A strong day for the pan-European Stoxx 600. The index finished the session up nearly 0.9 percent.
     
     
    The gains were spread among the individual European bourses.
     
     
     
  • Snap shares rebound on news of a $100 billion deal with Time Warner. 
     
     
    The camera company's share price fell to its IPO price of around $17 a share last week, but the deal is positive for the company's earnings. 
  • Amazon hit an all-time high of $1,017.0 earlier in the session, building on news of its planned acquisition of Whole Foods Market.
     
    However, the share price has slipped back on concerns that anti-trust regulations may prevent the deal being completed.
     
     
  • A car deliberately rammed a polive vehicle on the Champs-Elysees in Paris earlier today. Reports say the driver is likely dead.
  • We'll close the blog there. Join us again tomorrow as we report on a speech by Bank of England Governor Mark carney, the IFO publishes its economic forecast and the deadline arrives for an Ofcom report on Fox's takeover of Sky.
     
    See you on Tuesday!
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