World Markets Live - June 20 - CNBC Live Events
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CNBC Live Events

World Markets Live - June 20

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

  • Good morning everyone. Markets are in rally mode as tech stocks bounce back. In Europe too, futures point to a higher start to the trading day. Here's a look at your morning futures from IG index:
     
     
  • Here are your top stories this morning:
     
    • Tech is back on a tear as Apple helps the Nasdaq log its best day of the year, while the Nikkei rallies to near 2-year highs, driven higher by tech stocks.  
    • The CEO of Goldman Sachs, Lloyd Blankfein, tells CNBC he thinks the U.S. economy is in good shape, despite not being totally on board with President Trump's agenda. 
    • An early concession from Britain as Brexit negotiations kick off, with London agreeing to Brussels' demands on the sequencing of talks. 
    • Orange turns sour on BT, annoucing it could more than halve its stake in its British rival and raise over 1 billion dollars through the sale. 
       
  • Goldman Sachs CEO Lloyd Blankfein has told CNBC he feels optimistic about the outlook for the US economy, citing employment numbers, low energy prices, and growth.
     
    I can't say I'm on all fours about the trump admin. Across the board but as far as the economy is going they represented stimulus in the form of lower taxs, spending on infrastructure, taking away layers and layers of regulation. That's certainly good for the market but generally I think good for the economy.
     
     
    Speaking about central bank policy, the Goldman Sachs CEO gave good marks to former Fed Chair Ben Bernanke and current chair Janet Yellen.
     
    If we end up suffering some inflation at the end  of the day, which by the way there had been no signs of, which everybody was wringing their hands over, and still not enough of a sign. There's a playbook for dealing inflation. There is no playbook yet for dealing with deflation and they managed to avoid that by dealing by their kind of innovative policies that they were aggressive. And I say it took a lot of courage because all the naysayers were saying against them and were lined up against them. If it went wrong - if you look at it now, and everyone is worried about this, worried about this, but it hasn't gone wrong yet. 
     
  • Let's take a look at what markets are up to this morning with CNBC's Karen Tso.

  • Shares in Asia are mixed as investors await a decision on whether China's mainland stocks will be included in MSCI's benchmark emerging markets index. This is the fourth year the firm has considered including the shares.
     
    Fraser Howie, an independent analyst told CNBC China needs to do more: 
     
    Think it comes back to control. MSCI continue to have problems -- repatriations, veto power, suspended onshore...China needs to get tough domestically and at the same time free up to allow capital flows. And they seem unwilling to do so, and I think they're going backwards in some ways. 
  • Formal Brexit negotiations are now underway, nearly a year after the U.K. voted to leave the EU. Chief European negotiator Michel Barnier said the talks started on a good footing. He exchanged gifts with his counterpart, U.K. Brexit Secretary David Davis. Barnier offered a walking stick and Davis gave a book about mountaineering.
     
    We also agreed on the importance of the timing for this first phase. Our objective is to agree on the main principles of the key challenges for the UK's withdrawal as soon as possible. This includes citizens' rights, the single financial settlement, and the question of borders in particular in Ireland.
     
     
    Meanwhile, Michel Barnier, EU Chief Negotiator for UK leaving the European Union said:
     
    We also agreed on the importance of the timing for this first phase. Our objective is to agree on the main principles of the key challenges for the UK's withdrawal as soon as possible. This includes citizens' rights, the single financial settlement, and the question of borders in particular in Ireland.
  • Here are your top stories at this hour:
     
    • Tech is back on a tear as Apple helps the Nasdaq log its best day of the year, while the Nikkei rallies to near 2-year highs, driven higher by tech stocks.  
    • The CEO of Goldman Sachs, Lloyd Blankfein, tells CNBC he thinks the U.S. economy is in good shape, despite not being totally on board with President Trump's agenda. 
    • An early concession from Britain as Brexit negotiations kick off, with London agreeing to Brussels' demands on the sequencing of talks. 
    • Orange turns sour on BT, announcing it could more than halve its stake in its British rival and raise over 1 billion dollars through the sale. 
  • Today, MSCI, one of the world's largest index providers, will decide whether to include a selection of China's mainland stock market into its MSCI Indexes, which underpin some of the largest ETFs in the world, including the iShares MSCI Emerging Market ETF (EEM) and the MSCI ACWI Index ETF (ACWI).
     

    A $6 trillion decision over the future of how we invest in China is coming Tuesday

    CNBCMSCI will decide on Tuesday whether to add the $6 trillion mainland China stock market to its indexes, including Emerging Markets.
  • Japan's Nikkei rose more than 1 percent to a near two-year high on Tuesday, encouraged by rebound in U.S. hi-tech shares as investors bet on solid growth in the economy and corporate profits globally.

    MSCI's broadest index of Asia-Pacific shares outside Japan held firm near a two-year high struck last week, but was little changed on the day, with gains in high-tech firms offset by a decline in Australian shares.

    A big focus for Asia is whether index provider MSCI will later in the global day open up its Emerging Markets Index to Chinese mainland shares which have restricted access for foreign investors.
     
     
  • Politicians are used to stinging criticism. It comes with the territory, but can still be hard to swallow. 
     
    Not so for Costa Rica's president. Luis Guillermo Solis Rivera was speaking to the press when a wasp flew down his throat mid-sentence. Without breaking stride, the president laughed off the incident, saying the insect had merely added to his protein intake.
     
    UN-GENERAL ASSEMBLY-COSTARICA : News Photo
  • Whole Foods is looking to expand its product offering after it is acquired by tech giant Amazon. That's according to comments made by the retailer's CEO in a securities filing.  
     
    The remarks suggest Whole Foods could be preparing to launch a whole new brand after Amazon completes its 13.7 billion dollar purchase of the firm. 
     
     
  • Here are your top stories at this hour:
     
    • Tech is back on a tear as Apple helps the Nasdaq log its best day of the year, while the Nikkei rallies to near 2-year highs, driven higher by tech stocks.  
    • The CEO of Goldman Sachs, Lloyd Blankfein, tells CNBC he thinks the U.S. economy is in good shape, despite not being totally on board with President Trump's agenda. 
    • An early concession from Britain as Brexit negotiations kick off, with London agreeing to Brussels' demands on the sequencing of talks. 
    • Orange turns sour on BT, announcing it could more than halve its stake in its British rival and raise over 1 billion dollars through the sale. 
  • The German Federal Statistics Office has reported the following economic indicator:
     

    GERMAN PRODUCER PRICES

    MAY 17

    APRIL 17

    MAY 16

    Month-on-month change

    -0.2

    +0.4

    +0.4

    Year-on-year change

    +2.8

    +3.4

    -2.7

    Index (basis 2010)

    104.5

    104.7

    101.7

     
    That's according to Reuters. 
  • European bourses are expected to open higher Tuesday, as investors turn their attention to individual stock news and data, while keeping a close eye on political news coming out of the region.

    The London FTSE 100 index is called to open 10 points higher at 7,533, the German DAX up 33 points at 12,921 and the French CAC up 14 points at 5,324, according to IG.
     

    European markets seen higher as investors look to Carney speech, data

    CNBCEuropean bourses are expected to open higher Tuesday, as investors turn their attention to stock news, data, and politics.
  • Here's a look at European futures ahead of the markets open:
     
     
  • UK Serious Fraud Office says charges Barclays over 2008 Qatar fundraising. Four former Barclays executives - John Varley, Roger Jenkins, Thomas Kalaris and Richard Boath charged over 2008 fund raising.
     
    The SFO says defendants to appear before London's Westminster Magistrates' court on July 3.
  • Here are your top stories at this hour:
     
    • European futures pointing higher after the Nasdaq logs its best day of the year, while the Nikkei rallies to near 2-year highs, driven by tech stocks. 
    • The CEO of Goldman Sachs, Lloyd Blankfein, tells CNBC he thinks the U.S. economy is in good shape, despite not being totally on board with President Trump's agenda. 
    • The UK Serious Fraud Office charges Barclays over emergency fundraising from Qatari investors in 2008, after a five year investigation into the bank's dealings with the country at the height of the financial crisis.
    • Orange turns sour on BT, announcing it could more than halve its stake in its British rival and raise over 1 billion dollars through the sale. 
       
  • Barclays says is 'considering its position in relation to these developments' over SFO fraud charges and is waiting for further details of charges from SFO.
     
    SFO has informed Barclays that it has not made a decision as to whether it will also bring charges against Barclays bank in respect of loan, Barclays says, 
     
    Barclays further adds that as previously disclosed, a civil claim has been served on Barclays Bank by PCP Capital Partners. That's according to Reuters.
  • British Minister Grayling says I am confident we will secure a sensible deal with Northern Ireland#s DUP, talks going well. That's according to Reuters.
  • British Prime Minister Theresa May's Conservative Party is confident of securing a "sensible" deal with the small Northern Irish Democratic Unionist Party (DUP), Transport Secretary Chris Grayling said on Tuesday.
     
    We're having good constructive discussions and I'm confident that we'll reach a sensible agreement, Grayling told BBC radio. "The talks are going on, they are going well.

    May lost her parliamentary majority in a snap election she called on June 8, and she will need the support of the DUP to pass laws.
    Grayling said the DUP were not interested in another election and added there should not be a change of prime minister amid questions over May's own position after the botched election campaign and her response to a deadly London tower block fire in which at least 79 people died.
  • European stocks are now open for trading. The pan-European Stoxx 600 has opened slightly higher as markets follow the rally stateside and in Asia:
     
     
     
     
  • European indexes are trading slightly higher as investors eye Carney's speech 
     
     
  • The UK Serious Fraud Office has charged Barclays over fundraising from Qatari investors in 2008. The office said it was charging 4 individuals in relation to the capital raising, including former chief executive John Varley. 

    The investigation, which has taken five years, centred around undisclosed payments to investors in the country amidst a 12 billion pound emergency fund raising at the height of the financial crisis. In a statement, Barclays said it was considering its position over the fraud charges. 
     
     
  • Klaus Regling, Managing Director of the European Stability Mechanism joins us live to discuss his views on Brexit:
     
    I regret the Brexit, politically it weakens also the EU, But economically there is no comparison when you look at the trade flows and when you look at what happened to London, the economic cost is mainly on the UK.
     
     
     If there is a clash in the end and there is no agreement then the costs will go up for both sides. That's why I think it is positive that the process started, there is an agreement on the timetable and priorities which is a good thing.
  • French telecom giant Orange says it's looking to reduce its share of U.K. rival BT. Orange currently owns a four percent stake in British Telecom. It's seeking to raise around 900-million pounds by cutting its stake by more than half.

    The share sale comes as BT stock trades near multi-year lows in the wake of an accounting scandal at its Italian unit.
     
     
  • Germany's IFO Institute has significantly increased its economic forecast for this year and next, seeing new record highs in employment. 
     
    Clemens Fuest, President of the Ifo Institute for Economic Research joins us live to discuss more:
     
    Growth outlook is going to be significantly better. We have seen a very strong first half year and stronger than we expected and this year we will also see a further increase in employment.
     
    Overall the euro has been undervalued for the German economy. The revaluation will be a slight headwind but generally the euro exchange rate is too low for the German economy.
  • UK Finance Minister Philip Hammond says government will prioritise British businesses and British jobs to secure the prosperity and living standards of the British people now and in the long term. 
     
    Hammond says future trade deals must reflect Britain's service-based economy so that they deliver clear benefits to working people. He also said will remain committed to fiscal rules set out at autumn statement which will guide us, via interim targets in 2020, to a balanced budget buy the middle of the next decade. 
  • Barclays and four former senior executives have been criminally charged in a high-profile UK investigation into undisclosed payments to Qatari investors during a 12 billion pound ($15.4 billion) emergency fund raising in 2008.
     
    In a highly anticipated announcement, the Serious Fraud Office (SFO) said on Tuesday it was charging the bank with conspiracy to commit fraud by false representation and unlawful financial assistance.
     
    Barclays said it was considering its position over the charges and awaited further information.
     
    It also charged Barclays' former senior executives John Varley, Roger Jenkins, Thomas Kalaris and Richard Boath. The fundraising in 2008 included a $3 billion loan facility made to the wealthy Gulf state in November 2008, the SFO said.
     
    Barclays headquarters in London, England.
  • Now is not the time to raise interest rates, Bank of England Governor Mark Carney said on Tuesday, warning of weak wage growth and a likely hit to incomes as Britain prepares to leave the European Union.

    Carney, speaking to London's banking community alongside finance minister Philip Hammond a day after Brexit talks started, said that depending on how the talks progress, businesses might soon need to activate contingency plans.
    Before long, we will all begin to find out the extent to which Brexit is a gentle stroll along a smooth path to a land of cake and consumption, he said.

    Monetary policy cannot prevent the weaker real income growth likely to accompany the transition to new trading arrangements with the EU.

    Last week, three BoE policymakers of the eight on the Monetary Policy Committee unexpectedly voted to raise interest rates. Carney voted to keep them at a record low 0.25 percent and gave no sign he was in a rush to change his view.

    Given the mixed signals on consumer spending and business investment, and given the still subdued domestic inflationary pressures, in particular anaemic wage growth, now is not yet the time to begin that adjustment, he said.

    In the coming months, I would like to see the extent to which weaker consumption growth is offset by other components of demand, whether wages begin to firm, and more generally, how the economy reacts to ... the reality of Brexit negotiations.

    Carney also underlined the importance of trade liberalisation - especially in financial services - and said it was unclear if Britain's large current account deficit was yet on a sustainable footing.
  • Sterling is down half a percent against the dollar after Bank of England governor Carney's speech:
     
     
  • Here's the PDF version of Mark Carney's full speech at The Mansion House this morning.

  • U.K. 10-year Gilt yields fall below 1 percent for first time since June 15 after Carney's speech released:
     
     
     
  • BOE Governor Mark Carney says:
     
    In this environment, the UK is running a historically large current account deficit. On the positive side, the deficit is funded in domestic currency and financial reforms have increased the resilience of the UK system, thereby making larger imbalances more sustainable. But the UK’s deficit has also been associated with markedly weak investment and latterly with rapid consumer credit growth. This is not an imbalance that is, as yet, funding its eventual resolution.
     
    Moreover, despite the large depreciation around the referendum, the extent to which the UK’s deficit has moved closer to sustainability remains an open question, one whose answer depends crucially on the outcome of the Brexit negotiations. Most fundamentally, the UK relies on the kindness of strangers at a time when risks to trade, investment, and financial fragmentation have increased.
     
     
     
  • Sterling hits one-week low against the dollar as Bank of England governor Mark Carney speaks at the Mansion House. Here's a look at sterling since the day after Brexit:
     
     
  • The Ifo economic institute raised its 2017 growth forecast for the German economy to 1.8 percent from 1.5 percent previously, with vibrant domestic demand and strong export growth propelling employment levels to historic highs.

    We're experiencing a first half which is so strong that the impetus will carry on into the coming year, Timo Wollmershaeuser, head of economic research at Ifo, said in a statement on Tuesday.
    The upswing is being driven by the domestic economy, especially construction and consumption, he added. But now we have industry too. The improving economies of the euro zone and the rest of the world are significantly boosting exports.
  • Day one of negations between the U.K. and the European Union ended with Brussels getting its way on the timetable for Britain's exit from the economic bloc, leaving no illusions that London was not in control of its own destiny.
     

    What bankers in London really think of Brexit

    CNBCCNBC interviewed 10 people working in the finance industry, from junior investment bankers to senior analysts to find out what's really on their mind about Brexit and how it will impact their lives and the wider City of London.
  •  The dollar hit a three-week high against a basket of currencies on Tuesday, after an influential Federal Reserve official said U.S. inflation would pick up as wages improved, bolstering bets on the Fed continuing to raise interest rates.

    The greenback got a further lift on Tuesday when Bank of England Governor Mark Carney said now was not the time to raise British interest rates, sending sterling down more than half a percent against the U.S. currency.
     
     
  • Major European indexes have been trading for nearly 90 minutes now and are in positive territory:
     
     
     
  • European markets edge higher as media stocks lead gains; Barclays charged with fraud, sterling falls

    CNBCEuropean bourses edged higher on Tuesday, as investors turned their attention to individual stock news and data.
  • Germany's Merkel says protectionism may help companies in short-term, but not mid to long-term. She says the German G20 presidency is focusing on free, fair, sustainable and inclusive trade. 
     
    Merkel says we are close to trade agreement with Japan, will discuss steel trade at G20 in Hamburg, trade in the industry has to be based on rules and be fair. That's according to Reuters.
  • Germany's Merkel says wants to continue good partnership with Britain after Brexit, hope negotiations take place in good spirit. That's according to Reuters.
  • Germany's DAX hits fresh record high, now up 0.4 percent:
     
     
  • PIMCO's Bonds CIO Andrew Balls says Fed may raise rates as much as four times next year. He also says the probability of recession in U.S. over next three to five years is pretty high. That's according to Reuters.
  • The Serious Fraud Office has announced it will charge Barclays and four of its former executives with fraud, including former CEO John Varley.
     
    The charges relate to the capital raising arranged by the bank in 2008 with Qatar Holding LLC and Challenger Universal Ltd, and a US$3 billion loan facility made available to the State of Qatar. The capital raising provided Barclays with a lifeline during the financial crisis and helped it avoid a state bailout, unlike Lloyds and RBS.
     
    The FCA is also waiting in the wings to pronounce a decision from its own parallel probe into the 2008 capital raising. In 2013 the FCA said it would fine Barclays £50 million over the matter, but the investigation was deferred and reopened. 
     
    Laith Khalaf, Senior Analyst, Hargreaves Lansdown analyses the decision:
     
    The SFO hasn’t pulled any punches, and Barclays now finds itself facing yet another regulatory battle. The bank is already facing litigation from the US Department of Justice and an FCA investigation into its current boss, Jes Staley, for trying to uncover the identity of a whistleblower. Skeletons seem to be jumping out of lots of closets at once for Barclays.
     
    The spectacle of former executives being paraded through court will do nothing to strengthen the credentials of the bank, as it continues to try to execute its turnaround plan. While RBS and Fred Goodwin recently avoided the ignominy of a court appearance, it appears that Barclays and its former CEO John Varley will not.
     
    However the muted reaction in the share price highlights the fact that the SFO action was largely priced in, and more widely reflects the “misconduct discount” which applies to the banking sector. Litigation, fines and compensation payments have sadly become part and parcel of the banking world, and while many of the alleged offences took place a long time ago, the costs and reputational damage are still very much a live issue.
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