World Markets Live - June 21 - CNBC Live Events
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World Markets Live - June 21

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

  • U.S. existing home sales for May came to 5.62 million, better than the 5.55 million expected and up from April's 5.56 million units.
     
    Home sales are up 1.1 percent, compared to April's fall of 2.5 percent.
     
    The national median home price hits a record high $252,800, up 5.8 percent from May 2016. This is the result of limited supply.
     
    Also, 5 percent of existing home sales were distressed, versus 5 percent in April and 6 percent in May 2016.
     
    First time buyers are around 30 percent of the market, lower than where they should be. Buyers are being kept to the side due to high house prices.
  • Good morning everyone. Happy mid-week! Two more days to the weekend and markets seem to be taking a breather as well. Futures in Europe indicate a slightly lower start to the trading day as the fall in oil prices drive stock indexes lower. Here's what your morning futures look like:
     
  • Here are your top stories at this hour:
     
    • Crude prices sink into bear market territory. Oil traders discount OPEC's compliance to output cuts and keep cautious on the glut still haunting producers. 
    • A seismic shift in Saudi Arabia after the King names Mohammad Bin Salman as the new crown prince in a rare shake-up of the Kingdom's most powerful players. 
    • China joins the 1.6 trillion dollar MSCI club, as the emerging market index gives the country's 'A'  shares access for the first time. 
    • Close but no cigar. A deal still alludes Theresa May's Conservatives and Northern Ireland's DUP ahead of the Queen's speech to open Parliament. 
  • Oil languishes near multi-month lows on glut fears

    CNBCOil prices dipped on Wednesday, trading around multi-month lows, as investors discounted evidence of strong OPEC compliance.
  • Let's take a look at oil markets this morning with Karen

  • In a major political shakeup, Saudi Arabia's King Salman has relieved his nephew, Muhammad bin Nayef, as Crown Prince. The King is replacing him with his son, 31 year-old Mohammed bin Salman.
     
     
  • No deal yet between U.K. prime minister Theresa May and Northern Ireland's Democratic Unionist Party. Queen Elizabeth will formally open parliament today with her speech.
     
    The vote on approving the speech will be a critical test of whether May can manage the difficult task of leading a minority government. DUP sources told Reuters that the party's support should not be "taken for granted," but the party is expected to vote in favour of the Conservatives' legislative programme.
     
    Theresa May Responds To Last Night's Terror Attack On The Muslim Community In Finsbury Park : News Photo
  • Uber Founder Travis Kalanick Resigns as C.E.O., that's according to the New York Times.
     

    Uber Founder Travis Kalanick Resigns as C.E.O.

    The company’s co-founder had been under increasing pressure, and several major investors demanded that he resign from the company immediately.
  • Here are your top stories at this hour:
     
    • Crude prices sink into bear market territory. Oil traders discount OPEC's compliance to output cuts and keep cautious on the glut still haunting producers. 
    • A seismic shift in Saudi Arabia after the King names Mohammad Bin Salman as the new crown prince in a rare shake-up of the Kingdom's most powerful players. 
    • China joins the 1.6 trillion dollar MSCI club, as the emerging market index gives the country's 'A'  shares access for the first time. 
    • Close but no cigar. A deal still alludes Theresa May's Conservatives and Northern Ireland's DUP ahead of the Queen's speech to open Parliament. 
    • Travis Kalanick's time at the wheel has reportedly come to an end, as the New York Times suggests he has stepped down as Chief Executive of Uber. 
     
  • Equities across Asia are trading broadly lower, but mainland Chinese stocks are seeing a lift. This comes after MSCI accepted 222 large cap stocks from mainland China into its Emerging Markets Index. 
     
    The index said it would add the stocks on a gradual basis from next year. Companies on the list include Bank of China and Tsingtao Brewery.
     

    China finally gets long sought-after endorsement as MSCI adds stocks to emerging markets index

    CNBCThe review is the fourth straight year MSCI has considered adding the mainland-traded stocks, known as A shares in China.
  • One of the things that could knock the U.S. central bank off its rate-hiking schedule is a rise in disruptive corporate deal-making. That's what Chicago Fed President Charles Evans told CNBC in an exclusive interview.
     
    He didn't mention any specific mergers or acquisitions, but a number of economists are warning that Amazon's purchase of Whole Foods could weigh on inflation. 
     
    I have voted with the committee with the rate increases because the fundamentals of the economy are good. I think that the unemployment rate falling to 4.3 percent is good. I think we are likely to see more inflationary pressure but I am nervous. I think our current stance of policy is accommodative.

     
    Federal Reserve Presidents Speak At The AEA Conference : News Photo
     
    The Chicago Fed President sounded an upbeat note on the US economy, but he cast doubt over the likelihood of tax and regulatory cuts in the short to medium term 
  • Alibaba executive chairman Jack Ma is in Detroit making a high-profile pitch to small American businesses. He's hosting an event called Gateway '17, aiming to convince smaller enterprises to work with the eCommerce giant in order to reach China's consumers.
     
    This expands on a meeting Ma had with Donald Trump in January. Ma said they talked about how independent businesses could grow by selling more to China's growing market. Alibaba said at the time that its outreach could create a million U.S. jobs.
     
    Alibaba has also weighed in on Amazon's 13.7 billion dollar purchase of Whole Foods. Vice chair Joe Tsai spoke to CNBC.
     
    We have warehouse solutions, we have operated warehouses here where you can move your inventory in there and then help move your goods there. We deal with payment solutions. One of the biggest pain points of small business is getting paid. We operate the biggest online payment business AliPay in China. So all the consumers are now shopping and paying with a mobile phone. So we can help small business with the payment solution and also with currency conversion. So all the pain points we have thought through.  We also have a bond a warehouse solution. (reporter interrupts: so logistically, I can make it work I get enough goods together as well to make it efficient for me. From a shipping standpoint) you can.,,you can because we have our warehouse solution is an aggregated solution so we bring many different parts of the different businesses into one warehouse and then we consolidate and ship them. But you could also bring it in in terms of a bonded a warehouse which means that the products come from China without having to pay a tariff to these until you sell the goods. And so that's a very easy solution. 
     
    Alibaba Singles' Day Online Shopping Event : News Photo
  • Here are your top stories at this hour:
     
    • Crude prices sink into bear market territory. Oil traders discount OPEC's compliance to output cuts and keep cautious on the glut still haunting producers. 
    • A seismic shift in Saudi Arabia after the King names Mohammad Bin Salman as the new crown prince in a rare shake-up of the Kingdom's most powerful players. 
    • China joins the 1.6 trillion dollar MSCI club, as the emerging market index gives the country's 'A'  shares access for the first time. 
    • Travis Kalanick's time at the wheel has reportedly come to an end, as the New York Times suggests he has stepped down as Chief Executive of Uber. 
  • Oil prices dipped on Wednesday, trading around multi-month lows as investors discounted evidence of strong compliance by OPEC and non-OPEC oil producers with a deal to cut global output.
     
     
  • The dollar pulled back from one-month highs against a basket of currencies on Wednesday as tumbling oil prices pushed down U.S. yields, while the pound wobbled after Bank of England Governor Mark Carney shot down hopes of an interest rate hike.

    The dollar index against a group of major currencies was 0.05 percent lower at 97.699.
     
     
  • U.K. Prime Minister Theresa May's Deputy Damian Green says no individual sticking point in talks with Northern Ireland's DUP, talks are progressing. 
     
    Green says it will take some time to reach a deal with DUP. That's according to Reuters.
  • Here are your top stories at this hour:
     
    • Crude prices sink into bear market territory. Oil traders discount OPEC's compliance to output cuts and keep cautious on the glut still haunting producers. 
    • A seismic shift in Saudi Arabia after the King names Mohammad Bin Salman as the new crown prince in a rare shake-up of the Kingdom's most powerful players. 
    • China joins the 1.6 trillion dollar MSCI club, as the emerging market index gives the country's 'A'  shares access for the first time. 
    • Travis Kalanick's time at the wheel has reportedly come to an end, as the New York Times suggests he has stepped down as Chief Executive of Uber. 
  • Former Barclays CEO John Varley has resigned from BlackRock's board of directors. Varley served as an independent director for the company since 2009. He was among those from Barclays charged with charged with conspiracy to commit fraud in connection with emergency fundraising in Qatar in 2008.
     
    BlackRock CEO Larry Fink thanked Varley for his board service in a statement, saying: "BlackRock and its management team have benefited greatly from his contributions, and I feel privileged to count him as a friend."
     
     
     
     
  • European bourses are expected to open in the red this morning, as investors gear up for news out of the U.K. while keeping a close eye on the oil market for any sharp price moves.
     
     
  • Here's the statement from the Uber board:
     
    Travis has always put Uber first. This is a bold decision and a sign of his devotion and love for Uber. By stepping away, he’s taking the time to heal from his personal tragedy while giving the company room to fully embrace this new chapter in Uber’s history. We look forward to continuing to serve with him on the board.
  • Bank of Japan governor Kuroda says Japan's economy is on firmer footing, output and exports are rising, expects consumer price gains to pick up pace.
     
    Kuroda says still need to closely monitor consumer price trend. He further adds that it is appropriate to continue with strong easing, still distant from inflation target. That's according to Reuters.
  • European markets are now open for trading. The pan-European Stoxx 600 has opened slightly lower as investors keep a close eye on oil prices that are trading at multi-month lows:
     
     
  • Major European indexes trading slightly negative. Only a few sectors holding on to the green, taking a breather after record highs earlier this week:
     
     
  • Let's take a look at the best and the worst performing stocks this morning:
     
  • Whitbread has reported a near 3-percent rise in like for like sales in the first quarter.

    The owner of Costa coffee and Premier Inn hotels  said total sales rose over 7 percent in the period, in line with expectations. Costa like for like sales were up 1.1 percent. 

    Whitbread said it had made a good start to the year and that planned hotel and coffee shop openings remain on track. 
     
     
  • Berkeley posted a better-than-expected 53 percent rise in pretax profit for the full-year. The British homebuilder said it is on track to deliver at least 3 billion pounds in pretax profit in the next four years, but warned that tax rises on top-end properties and Brexit could harm the sector near-term.
     
     
  • Air Berlin shares are rising after its CEO said the airline no longer needs state guarantees.
     
     
  • Sterling falls below $1.26 to 2-month low, down 0.2 percent on the day:
     
     
  • The elevation of Saudi Arabia's deputy crown prince Mohammad bin Salman to crown prince, a position that places the 31 year old next in line to the throne, could be met with resistance at home.
     

    Power struggle may arise in Saudi Arabia after new crown prince named

    CNBCThe elevation of Saudi Arabia's former deputy crown prince Mohammad bin Salman could be met with potentially violent resistance at home.
  • Here are your top news stories at this hour:
     
    • Crude prices sink into bear market territory, putting investors on edge and dragging European equities into the red. 
    • A seismic shift in Saudi Arabia after the King names Mohammad Bin Salman as the new crown prince in a significant shake-up of the Kingdom's most powerful players. 
    • Shares of Air Berlin take flight after the company's CEO says the airline no longer needs state guarantees and will not ask for state support. 
    • Travis Kalanick's time at the wheel has come to an end, as he steps down as Chief Executive of Uber amid a shareholder revolt. 
       
  • Thirty minutes since the start of the trading session and major European indexes are trading lower as the drop in oil prices weigh in:
     
     
     
     
  • Whitbread saw like-for-like sales growth of 2.9% in the first quarter, with total sales up 7.6%, boosted by net new openings in both Costa and Premier Inn.

    The shares rose 5.5% following the announcement.
     
    Nicholas Hyett, Equity Analyst, Hargreaves Lansdown analyses the numbers:
     
    These results are pretty solid all things considered. They don’t show the spectacular growth of years past, but the UK business is a more mature animal than it was and that is inevitably going to slow growth.

    Against a rather chilly economic backdrop Whitbread has delivered growth across the board, with 1.1% growth in Costa particularly welcome after it posted negative like-for-likes in the last quarter of 2016.

    The group continues to set some fairly chunky growth targets for the rest of this year, which could be challenging if the UK economy remains sluggish. However, it’s the international business that seems likely to become the long term growth driver. Although there’s little in the way of fresh news this time round, performance remains robust.

    With a PE of 14.7x versus a longer run average of 17.6x, the group’s valuation doesn’t look challenging for that long term growth potential
     
  • Oil prices continue to trade lower this morning as global glut concerns fear investors:
     
     
  • Let's take a look at oil markets this morning with Steve

  • The UK is once again the sick man of Europe thanks to the political chaos brought about by the Conservatives says John McDonnell, UK Shadow Chancellor on CNBC's Squawk Box:
     
  • UK PM pledges 'humility and resolve' ahead of Queen's speech
     
    • In an occasion stripped back of its usual pageantry, the Queen's speech will set out the government's proposed legislation and policies for the next session of parliament.
    • Brexit is expected to dominate the speech while some of May's manifesto pledges are predicted to have been scaled back after an inconclusive election vote.
    • The speech is written by the government but will be delivered by Queen Elizabeth II at the State Opening of Parliament
     

    UK PM pledges 'humility and resolve' ahead of Queen's speech

    CNBCPrime Minister Theresa May has vowed to work with "humility and resolve" as the government prepares to outline its legislative program on Wednesday.
  • Major European banks are trading in the negative this morning as risk sentiment turns sour across the globe due to oil prices sinking into bear market:
     
     
  • U.K. public borrowing fell in May, as value-added tax receipts hit their highest on record for the month, official data showed Wednesday.

    Britain's public borrowing stood at 6.7 billion pounds ($8.5 billion) last month, the Office for National Statistics said. This was slightly lower than the GBP7.1 billion seen in May 2016 and below the forecast of analysts, who expected the borrowing to have increased to GBP7.5 billion.

    It was also the lowest borrowing figure for the month since 2007, the ONS said.
  • Daryl Liew, Head: Portfolio Management at REYL Singapore, comments on the announcement by MSCI to include China A Shares to its benchmark emerging market index. 
     
    The inclusion of China A-shares in the MSCI indices is a milestone in the development and liberalisation of China’s financial sector. This comes on the back of the launch of the Shanghai-Hong Kong & Shenzhen-Hong Kong stock connect programmes that currently allow foreign investors to invest in the onshore China stock market, and the impending launch of Hong Kong bond connect allowing access to the China bond market. While the initial allocation in the MSCI EM index is relatively small, this allocation will inevitably increase as China capital markets continue to expand.
  • Gold inched up on Wednesday after hitting its lowest in five weeks in the previous session, buoyed as equities fell and the U.S. dollar eased from one-month highs following a tumble in crude oil prices.
     
     
     
  • Mihir Kapadia – CEO and Founder of Sun Global Investments, comments on the performance of oil:
     
    Oil prices have once again declined, weighed down by a large supply glut, as Crude plunged into a bear market on Tuesday, falling another 2.2% to settle at a nine-month low of $43.23 a barrel. Oil is down 22% from early January and therefore officially in a bear market.  
     
    The energy markets are operating on a back foot, due to  concerns there is too much oil despite the OPEC-led production cutbacks.
     
    Expanding US shale production continues to dilute the efforts by OPEC and Russia to stabilise the market prices. The oil worries spread to Wall Street as energy stocks, already the biggest losers this year, took another hit on Tuesday.
     
  • Travis Kalanick stepped down Tuesday as chief executive of Uber, the ride-hailing service that he helped found in 2009 and that he built into a transportation colossus, after a shareholder revolt made it untenable for him to stay on at the company.
     
    Mr. Kalanick's exit came under pressure after hours of drama involving Uber's investors, according to two people with knowledge of the situation, who asked to remain anonymous because the details are confidential.
     
    Earlier on Tuesday, five of Uber's major investors demanded that the chief executive resign immediately. The investors included one of Uber's biggest shareholders, the venture capital firm Benchmark, which has one of its partners, Bill Gurley, on Uber's board. The investors made their demand for Mr. Kalanick to resign in a letter delivered to the chief executive while he was in Chicago, said the people with knowledge of the situation. That according to the New York Times.
     
    Travis Kalanick.
    by Spriha Srivastava edited by luke.graham 6/21/2017 9:48:46 AM
  • The Duke of Edinburgh was admitted to King Edward VII Hospital in London last night, as a precautionary measure, for treatment of an infection arising from a pre-existing condition.

    Prince Philip is in good spirits and is disappointed to be missing the State Opening of Parliament and Royal Ascot.

    The Prince of Wales will accompany The Queen to the State Opening.

    Her Majesty is being kept informed and will attend Royal Ascot as planned this afternoon. 
     
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