World Markets Live - June 22 - CNBC Live Events
×

CNBC Live Events

World Markets Live - June 22

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

  • Good morning and welcome to World Markets Live. We'll begin full blog coverage from 6:00 a.m. BST.
     
    For now, here are the opening calls for European markets.
     
     
  • These are the top headlines this morning.
     
    • Brent crude dips below $45 a barrel for the first time this year despite a decline in U.S. oil stocks. Iran's oil minister says OPEC may be forced to make deeper output cuts. 
    • President Trump congratulates Mohammed Bin Salman on becoming Saudi Arabia's new Crown Prince, and calls for a resolution to the dispute with Qatar. 
    • People will only work 4 hours a day in the future. So says Alibaba founder Jack Ma, who tells CNBC in an exclusive interview that globalization is inevitable. 
    • And a tequila toast for George Clooney! The actor sells his spirit brand to Diageo for a cool $1 billion. 
       
  • Prices for Brent crude slid below $45 for the first time this year yesterday. The oil market is now around 10-month lows, after entering a technical bear-market on oversupply concerns.
     
    This despite EIA data yesterday showing a larger than expected drawdown from U.S. crude stocks. OPEC may now need to make deeper production cuts to balance the market more quickly.
     
     
  • What's on the economic agenda for Thursday?
     
    Notable events include Norway's central bank making an interest rate decision. In Brussels, the European Council will be meeting for the first time since the U.K. election. In France, the new French government holds its first cabinet meeting since the legislative election. Meanwhile in the U.K., details of a deal between the ruling Conservative party and the Northern Irish DUP are expected to be released.
     
    Also, here's a timetable for the economic data releases through the day (all times are BST).
     
    07:00 AM                    CH Balance of Trade MAY
    07:45 AM                    FR Business Confidence JUN
    08:00 AM                    DK Retail Sales MoM MAY
    08:00 AM                    TR Consumer Confidence JUN
    09:00 AM                    NO Norges Bank Interest Rate Decison 
    09:00 AM                    NO Norges Bank Monetary Policy Report 
    09:00 AM                    PH Interest Rate Decision                    
    10:25 AM                    TW Interest Rate Decision                               
    12:00 PM                     TR Monetary Policy Meeting Minutes                        
    01:30 PM                     US Initial Jobless Claims JUN/17                      
    03:00 PM                     EA Consumer Confidence Flash JUN  
  • Japanese firm Takata, maker of air-bag inflators which were found to be defective, is preparing to file for Chapter 11-style bankruptcy on Monday, according to Reuters citing sources.
     
    SMBC is to provide a bridge loan worth tens of billions of yen after the bankruptcy filing.
     
    Takata shares have fallen 50 percent in today's session on the reports. The company's share price has fallen about 75 percent since last Friday.
     
     
  • Diageo is buying George Clooney's tequila brand for up to a billion dollars. Clooney and some friends founded the upscale brand Casamigos in 2013.

    Diageo is paying $700 million up front. Bigger payments could follow if performance targets are met. High-end tequila is doing well at the moment. Diageo sees potential for growth for Casamigo in Europe.
     
     
  • President Trump has offered his congratulations to Saudi Arabia's new crown prince Mohammed bin Salman (pictured). This after his father, King Salman, appointed him successor, ousting his nephew Mohammed bin Nayef.
     

    In a phone call, the two discussed the ongoing diplomatic crisis with Qatar, as well as regional security and economic issues. The crown prince visited Washington in March. 
  • British Prime Minister Theresa May is considering cutting corporate taxes in a bid to make U.K. more attractive to business.
     
    She's in Brussels today for her first EU summit since her Conservative Party lost its parliamentary majority in the UK general election. May says she will be listening closely to business concerns about how Brexit will unfold.
     
     
  • U.K. PM Theresa May is incompetent, ignorant and selfish. That's the view according to Beat Wittmann, partner at Porta Advisors.
     
    I think for the next few months it will be very, very difficult for the U.K., not because of Brussels, or whether there’s a cordial interaction or not, I just think the EU understands better the dynamism, or the lack of dynamism, in U.K. domestic politics, and U.K.  politicians have not a minimal understanding of the EU, it seems to me.
     
    I think we will see a new prime minister within the next 3 to 6 months and the most likely one is Boris Johnson.
     
     
  • The falling oil price weighed on U.S. markets yesterday, hitting energy stocks hard. The Dow and S&P finished negative, while the Nasdap recorded a gain.
     
     
     
     
  • Asian stocks fared better, as oil stocks tried to drag themselves up from 10-month lows.
     
    Chinese shares saw significant gains after MSCI's decision to include them in its emerging market indexes.
     
     
  • Senate Republicans want to roll back expansion of America's health care benefits for the poor. That's among the details starting to dribble out about the health care overhaul that U.S. senators are expected to roll out later today.
     
    The Washington Post reports the bill will repeal most of the taxes used to pay for Obamacare and cancel funding for Planned Parenthood. A vote on the bill could come as soon as next week.
  • French President Emmanuel Macron is getting down to business with a crew that includes many political newcomers.
     
    The re-shuffled cabinet meets today for the first time since the legislative election where Macron's party and his allies won a commanding majority. Several ministers resigned recently, but Macron swiftly replaced them.
     
     
  • Alibaba founder Jack Ma has told CNBC in an exclusive interview he believes automation will mean people will work only four hours a day in the future.
     
    Speaking at the Alibaba Gateway Conference, he warned those changes will be painful. He also said he wants world leaders to know that globalization can't be stopped.
     
    You cannot stop globalization, the world is getting so small. Internet, airplane ticket, people travelling around, how can you stop it?
     
    If you cannot stop it, improve it.
     
     
     
  • Here's the top headlines for the hour.
     
    • Brent crude dips below $45 a barrel for the first time this year despite a decline in U.S. oil stocks. Iran's oil minister says OPEC may be forced to make deeper output cuts. 
    • President Trump congratulates Mohammed Bin Salman on becoming Saudi Arabia's new Crown Prince, and calls for a resolution to the dispute with Qatar. 
    • Calling on investors. Cable operator Altice raises almost $2 billion in its U.S. IPO, making it the second largest American offering of the year. 
    • On the road to bankruptcy. Takata shares lose half their value as the airbag maker reportedly seeks protection from billions of dollars in liabilities. 
       
  • Switzerland's trade balance for May was 3.4 billion Swiss francs in May, versus 1.96 billion the previous month.
     
  • Ewen Cameron Watt, senior director at BlackRock, weighes in on the oil market and where he sees the price headed.
     
    I think we’ve seen oil in this pattern five or six times since the 2014, early 2015 real dip-down to the low twenties. 
     
    Yesterday’s trading pattern (and I hate reading anything into one day’s trading pattern), with 5 percent swings, did suggest a market really trying to price the asset, rather than people trying to push it way on down. 
     
    So my sense if, because OPEC has already moved to production cuts, my sense is we’re probably in one of those $40 to $50, $50 to $55 ranging areas rather than going down into the mid-thirties. If that was wrong, there’d have to be a chronic increase in supply at a point of a very low price.
     
     
     
  • "Yes I do."
     
    That was U.K. finance minister Philip Hammond's response when asked if he thinks Theresa May will still be the country's prime minister by the end of the year.
  • Valdis Dombrovskis, vice-president of the European Commission, shared his view on whether or not the U.K. (and more specifically London) will retain passporting rights post-Brexit.
     
    The issue is quite clear, EU passports are linked to the EU single market. So if the intention of the U.K. is to leave the single market, then indeed U.K. financial institutions cannot hold EU passports. 

    Those things indeed come together, so the question is basically if you can rely on equivalence in different sectors or establish sufficient presence within the EU to maintain EU passports.
     
     
     
  • Looking ahead to the European market open we're getting weaker signals for the FTSE and CAC, while the DAX looks set to open higher, according to future values.
     
     
  • Harley-Davidson is considering a bid for Italian rival Ducati in a deal that could be valued up to 1.5 billion euros. This according to Reuters.
     
    Volkswagen, whose Audi division controls the Italian motorcycle maker, has also drawn interest from Indian firm Bajaj Auto. Several buyout funds are reportedly also eyeing one of the most famous names in the industry.  
     
    (Chaz Davies of Aruba.it Racing - Ducati during the superpole 2 of the Motul FIM Superbike Championship)
     
    Meanwhile, Altice USA, part of the Franco-Dutch cable giant, has raised $1.9 billion in its IPO.
     
    Priced at $30 a share, the company's market cap is approximately $22 billion. The listing is the second largest U.S. IPO this year. Altice USA will trade later today under the ticker symbol A-T-U-S.
  • Britain's finance minister Philip Hammond says British people want a Brexit that protects their jobs and standard of living.
     
    He says business investment is being postponed until the outcome of Brexit is clear and adds that he is not at odds with governmental colleagues over the type of Brexit the U.K. should seek, according to Reuters reports.
  • Steven Oh, global head of credit and fixed income at PineBridge Investments, explains why his firm decided not to buy the 100-year bonds being issued by Argentina.
     
    First of all, buying anything 100 years I’m not so sure is necessarily a good idea, but it takes I think some type of either tremendous short term trading knowledge or betting or some type of great insights about the future of Argentina and we try to buy things which we have a little bit better handle on, and that’s not it.
     
     
     
  • Northern Irish DUP lawmaker Donaldson says nothing on parades will feature in any deal with UK PM May's Conservatives.. Donaldson says PM May is moving the agreement process forward and chances of a deal by Thursday are very good. That's according to Reuters.
     
     
  • European stocks move mostly lower at the start of trade.
     
     
  • Tech and health care are the only European sectors in the green. Basic resources and oil & gas are dragging on the Stoxx 600.
     
     
  • Future values predicted the German DAX would open higher at the start of Thursday trade. Instead, the index has followed the FTSE and CAC lower, down about two-tenths.
     
     
  • Swiss stocks are performing well this morning after data this morning showed the country's trade surplus for May increased to 3.4 billion Swiss francs.
     
     
  • Francois Savary, CIO and Vice CEO, Prime Partners and Ewen Cameron Watt, Senior Director, Blackrock join us live on the set to discuss market open this morning:
     
    Francois Savary, CIO and Vice CEO, Prime Partners says:
     
    One of the key feature to our point of view is the behavior of the US dollar. I think beginning of the year, it was very clear that the individual were positioned for the U.S. dollar. I think what is happening with the U.S. dollar and if it stays this way, it is very important for the allocation and it has a significant impact on the emerging market, on the ability of the European stocks to be a good performer.
     
     
    Ewen Cameron Watt, Senior Director, Blackrock says:
     
    My message would be keep calm and keep invested. There is absurd narrative that because volatility is low it must automatically rise and history says that isn't the case. You get long periods of long volatility provided you have long periods of monetary volatility or economic volatility. We have got both at the moment.
     
     
     
  • Some more data released this morning.
     
    French business confidence is seen at 108 for June versus 109 in May.
     
    Danish consumer confidence in June is 7.1 points, according to Statistics Denmark.
     
    Turkish consumer confidence falls to 70 points in June from 72.8 points in May.
  • The countdown is on to the start of NAFTA renegotiations. Agriculture ministers from the U.S., Mexico and Canada met this week to lay the groundwork for upcoming talks. President Trump made a revised North American Free Trade Agreement a key theme of his campaign.
     
    Francisco Gonzalez, director general of Bancomext, Mexico's export - import development bank, says the U.S. needs Mexico.
     
    If you buy something that says made in Mexico, you’ll find 40 percent of U.S. items and ingredients in that product, but if you buy something made in Canada, only 20 percent. If you buy something made in China, only 6 percent made in the U.S. is in that product.
     
    So this relationship is very important.
     
     
  • Alcoholic beverages giant Diageo is buying George Clooney's tequila brand, Casamigos, for up to a billion dollars. Clooney and some friends founded the upscale tequila brand in 2013.
     
    Diageo is paying $700 million up front, and bigger payments could follow if performance targets are met.
     
    Shares in Diageo are down almost three quarters of a percent on the news.
     
     
  • Swiss watch exports saw significant year on year growth for the month of May.
     
    Exports of Swiss watches rose a nominal 9 percent and a real 4.1 percent, totalling 1.7 billion swiss francs. 
     
    Shares prices in Swiss watchmakers Swatch and Richemont rose sharply at the open, up more than 1 percent for both firms, but these gains have been pared back.
     
     
  • These are some of the stocks moving markets today.
     
    • The British competition watchdog has given the green light to Standard Life's £11 billion deal to acquire Aberdeen Asset Management. The merger is going to create the UK's largest listed asset manager.
    • Harley-Davidson is considering a bid for Italian rival Ducati in a deal that could be valued at up to 1 and a half billion euros, according to Reuters.
     
    • Volkswagen, whose Audi division controls the Italian motorcycle maker, has also drawn interest from Indian firm Bajaj Auto. Several buyout funds are also reportedly eyeing one of the most famous names in the industry.
    • Shares in Novartis are trading higher after a study found that the drugmaker's new investigational medicine reduced cardiovascular risks for people who had survived heart attacks.
  • Italy's tax police have raided the offices of 5 banks. It's part of an investigation into diamond sales to clients. This according to Reuters. Unicredit and Intesa Sanpaolo are said to be among those involved. 
     
    Claudia joins us from Milan:
    The question here is how this was exactly carried out. This was illegal in Italy to make a financial return unless the diamond sector was regulated in some way like the other financial products so if that's the case then these banks may have been allegedly been putting their clients into contact with the diamond salesman with these businesses could create a problem.
     
     
     
     
  • Italy's tax police have raided the offices of five banks. It's part of an investigation into diamond sales to clients. This is according to Reuters.
     
    Unicredit and Intesa Sanpaolo are said to be among those involved. 
     
     
  • These are the top headlines following the European market open.
     
    • Brent crude dips below $45 a barrel for the first time this year, dragging on European energy stocks.
    • Novartis shares get a shot in the arm after a study finds its new drug reduces cardiovascular risks for people with heart conditions. 
    • Calling on investors. Cable operator Altice raises almost $2 billion in its U.S. IPO, making it the second largest American offering of the year.
    • On the road to bankruptcy. Takata shares lose half their value as the airbag maker reportedly seeks protection from billions of dollars in liabilities.
  • A lawmaker from Northern Ireland's DUP says he believes there is a 'good chance' his party will reach an agreement with the Conservatives by next Thursday. Jeffrey Donaldson said talks to form a coalition with the ruling party were progressing well, but warned the DUP are 'no pushover'. 
     
    U.K. Chancellor Phillip Hammond says the British people want a Brexit deal that safeguards their living standards and jobs. Speaking to the British press, he said he will push for an early transitional deal to avoid a cliff-edge Brexit.  
     
    Willem has been following this story in Brussels where Theresa May is headed and joins us live:
     
    In terms of the meetings over the next 24 hours, we will be hearing about the usual stuff, increasing economic activity across Europe, counter terrorism as an area of cooperation where Theresa May and Macron seem to have found common ground. 
     
     
     
     
     

     
  • President Trump has called new Saudi crown prince Mohammed bin Salman to offer his congratulations. The two men talked security and economics on the phone yesterday. UK Prime Minister Theresa May has also welcomed the appointment.
     
    Prince Mohammed is now first in line to succeed his father, King Salman. He replaces the King's nephew, Mohammed bin Nayef.
     
    Prince Mohammed also becomes deputy prime minister, while retaining many of his previous powers. He'll oversee much of Saudi Arabia's energy strategy, which includes the highly-anticipated Saudi Aramco IPO. The crown prince is hoping his so-called vision 2030 will help Saudi Arabia become less reliant on oil exports.
     
    Torbjorn Soltvedt, Principal MENA Analyst at Verisk Maplecroft joins us live to discuss more:
     
    This is pretty significant for a number of reasons. I think the first reason is that this is really the first test for Saudi Arabia to see how it can manage the inevitable shift from the sons to his grandsons and there has always been a bit of concern that transition could cause a bit of instability.
     
     
  • Airbus says it won commitments for 326 aircrafts and 144 firm orders at Paris Air Show, Boeing got 443 net orders and commitments so far. That's according to Reuters.
  • EU leaders are gathering in Brussels today for a summit to discuss Brexit and security. U.K. Prime Minister Theresa May is due to attend the summit.
     
    Mrs May is expected to address the other 27 EU leaders and outline her plan for Brexit, including securing early guarantees for EU nationals living in Britain and British nationals living in the EU.
     
     
    by luke.graham edited by Spriha Srivastava 6/22/2017 7:53:07 AM
  • Norway central bank says key policy rate unchanged at 0.5 percent. The central bank says the forecast is little changed on the March report, but is a little higher in 2017 and 2018, and a little lower towards the end of the forecast horizon. That's according to Reuters.
     
     
  • Norwegian Krone rises after Norges bank decision:
     
     
  • A little over an hour since the start of the European markets open and indexes are trading lower as oil keeps a lid on European shares:
     
     
     
     
Powered by ScribbleLive Content Marketing Software Platform