World Markets Live - June 21 - CNBC Live Events

CNBC Live Events

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.

    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. 
    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. 
    Queen Elizabeth will shortly address the U.K. Parliament, laying out the government's legislation for the next two years.
    Peers are waiting in their seats for the Queen, dressed for the ceremony.
    The queen is taking her seat in the House of Lords, accompanied by her son Prince Charles.
    Here are some more images of the ceremony.
    The U.K.'s elected politicians are now joining their peers in the House of Lords to listen to the Queen's Speech.
    The queen says her government will seek to "make a success of Brexit".
    She says the government's priority is to secure the best Brexit deal possible.
    She says the government will seek to improve the country's finances while keeping taxes low.
    The national living wage will be increased, according to Queen Elizabeth.
    Protections in the workplace will be increased, and the gender wage gap will be addressed, according to the speech.
    The Queen's Speech focused on securing the best deal for Brexit and implied the government will collaborate with business and the U.K.'s devolved governments to gain broad consensus for Brexit.
    Shortly before the U.K. monarch delivered the Queen's Speech, President Trump was on Twitter offering advice to the Democrats.
    The U.K. currency has spiked against the dollar following comments from Bank of England chief economist Andy Haldane.
    He says he expects to vote for a rate hike this year, causing the currency to jump.
    Bank of England chief economist Andy Haldane says a withdrawal of stimulus would be prudent and such as tightening is likely to be needed ahead of market expectations, according to Reuters.
    He says the withdrawal of stimulus is needed relatively soon, and is a sign of the central bank's monetary policy committee confidence in the economy.
    He indicated he expects to vote for a rate hike this year. Haldane has previously been viewed as a dove. His comments come in contrast to Bank governor Mark Carney's comments yesterday, saying now was not the time for rate hikes.
    Sterling rose 0.4 percent against the dollar and U.K. gilt futures dropped by around 20 ticks in response to his comments.
    Here's how the U.K. yield curve is now looking.
    A spokesman for U.K. Prime Minister Theresa May says President Donald Trump's state visit to Britain wasn't included in the Queen's Speech today because the date hasn't been fixed yet.
    Sterling continues to rise against other currencies following Andy Haldane's hawkish comments regarding tightening monetary policy and removing stimulus.
    The pound is now up by more than half a percent against the dollar.
    Saudi Arabia is in focus today, following news that the country's deputy crown prince Mohammad bin Salman has been elevated to crown prince, which places the 31 year old next in line to the throne.
    Meanwhile, MSCI has added Saudi Arabia to its next review cycle to potential include the country in the MSCI Emerging Markets index.
    This could see Saudi Arabia added to the index by the end of May 2019. Renaissance Capital estimates that Saudi Arabia could have a weight of 2.5 percent in MSCI EM, making it the ninth-largest country in the index and the third-largest in EMEA.
    Here's what Renaissance Capital thinks this could mean for the market.
    Foreign ownership of Saudi equities is currently very low at just 4%. We estimate that inclusion in EM would trigger at least $2.3bn (or seven days of trading for the basket of stocks that are expected to make the cut) of inflows from passive funds (based on c. $94bn of EM-dedicated passive AuM), with a further $9.3bn of inflows should active funds move to neutral (or 26 days of trading).
    Currently, active GEM funds in aggregate hold a small (0.15%) amount of Saudi Arabia in their portfolios, down from a peak of 0.3% in August 2015. 
    The U.K. monarch earlier today read out the Queen's Speech, outlining the government's legislative agenda for the next two years.
    The main focus of the speech was negotiating Brexit and the need to work with business to get broad consensus. Business leaders will be pleased with the speech's focus on immediate challenges, according to Stephen Martin, director general of the Institute of Directors.
    There was also a welcome change of tone, clearly acknowledging the value of enterprise to the country and the importance of including businesses in discussions about what our future looks like.
    It is, of course, unlikely that the process of getting Brexit legislation through Parliament will be as smooth as it was presented today, but in the circumstances we were not expecting to get much more detail than we have received.
    Martin adds that the government needs to follow up with additional detail in the coming weeks and months in order to preserve business resilience. 
    (The queen with Prince Charles before beginning the Queen's Speech)
    Meanwhile, the Queen's Speech also outlined the government's plans to address consumer issues such as insurance and energy prices.
    Stephen Murray, energy expert at MoneySuperMarket, says the speech indicated the government is moving away from plans for an absolute price cap, which is good news for consumers.
    We also welcome the commitment to tackle any unfair practices in the energy market, especially those that bring down bills for more vulnerable customers in these uncertain times.

    Our message to consumers is simple: take control by switching to a competitive, fixed rate tariff today. It takes less than 10 minutes on a price comparison website to save up to £300 on your energy bills.
    Today's Queen Speech was light on detail, especially on the implications for U.K. tax policy, according to Dominic Stuttaford, head of tax for Europe, Middle East, Asia and Brazil at global law firm, Norton Rose Fulbright.
    We are however promised a National Insurance Contributions Bill, although this does not appear to extend to the discussion of self-employed contributions that there was at the time of the Spring Budget and which was later withdrawn. 
    We are also expecting a Summer Finance Bill; this will include measures to “tackle tax avoidance”. We have to wait to see whether they contain the proposed restrictions on interest relief and losses – which many would not see as anti-avoidance. Equally, we do not know if it will contain the measures affecting non-UK domiciled individuals. Given the delay in implementing these, it will be good if the Government moved the start date from 1 April 2017 to next year, but that may be too optimistic.
    For those interested, you can read the full Queen's Speech here.
    The queen reading the Queen's Speech at today's state opening of parliament.
    Is it just me or does Her Majesty's hat look a little similar to the EU flag?
    With around half an hour to the open of U.S. markets, future values have turned positive indicating a cautiously higher start to Wednesday trade.
    U.S. markets are now open, moving to the XXside. The markets fell in yesterday's session.
    The Nasdaq is once again positive for the month of June, as tech stocks lead trade on Wednesday. Here are the winners and losers on the index at the start of trade.
    U.S. stocks have pared earlier gains seen at the open. The Dow has now turned negative.
    Mattel is leading losses on the Dow. Here's the rest of the stocks at the top and bottom of the index.
    A mixed day for the dollar.
    The unexpected rise in U.S. existing home sales for May helped the currency to strengthen, paring losses against sterling and rising to a session high against the Japanese yen. The U.S. currency remains down against the Swiss franc and euro.
    Yields on U.S. treasuries are ticking higher this afternoon following the home sales data.
    Treasury values fell earlier after Bank of England member Andy Haldane took a hawkish tone indicating he supported a rate hike by the end of the year. 
    Concerns by Fed members about inflation and the impact of low interest rates has also led markets to start pricing in higher odds of another rate hike this year.
    Oil prices are recovering in afternoon trade. Crude extended gains after EIA data show a bigger-than-expected draw in U.S. crude inventories.
    Weekly crude stocks in the U.S. were down 2.5 million barrels to 509.1 million, versus a forecast draw down of 2.1 million.
    Despite the recovery, the oil market remains near bear-market territory.
    European markets are now closed. The Stoxx 600 finished down about 0.2 percent, although it was off earlier session lows.
    The Italian FTSE MIB managed to close the session in positive territory, helped up by a rally in banking stocks.
    The other major European bourses fared less well.
    Here are the stocks which finished the session at the top and bottom of the Stoxx 600. Italian lender UBI Banca finished at the top of the index.
    Meanwhile, U.S. trade continues. The Nasdaq remains positive as stocks rebound from yesterday's session. The Dow and S&P are lower.
    We'll close the blog there.
    Thank you for joining us today. We'll be back tomorrow from 0600 a.m. GMT. We'll be reporting the latest Norges bank interest rate decision and the European Council is meeting in Brussels tomorrow, for the first time since U.K. Prime Minister Theresa May's election set-back.
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