World Markets Live - June 23 - CNBC Live Events
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World Markets Live - June 23

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.
  • Here are the top news headlines this morning:
     
    • The U.S. healthcare sector hits an all-time high on the Republican's draft bill to scrap Obamacare, despite concerns that some Senators could stand in its way.
    • Meanwhile its a clean bill of health for America's banks. All major lenders pass the Federal Reserve's latest stress tests, raising the prospect of a pick-up in payouts to shareholders. 
    • 'It's a good start', says Angela Merkel of Theresa May's plan to guarantee the rights for EU citizens living in Britain, if the favour is returned by the continent.
    • Shares in Wanda and Fosun recover from sharp losses amid reports China's bank regulator told lenders to investigate the systemic risk posed by these firms.
  •  
    Healthcare stocks led narrow trading stateside as Senate Republicans revealed their healthcare plan.
     
    It includes large cuts to Medicaid and a defunding of the Planned Parenthood organisation. UnitedHealth was the biggest gainer, with the Health Care Select ETF hitting an intraday high earlier in the session.
  • NBC's Kasie Hunt has the details on the health-care bill. It now relies on a handful of Republicans to get through Congress.

  • President Trump has been tweeting about tapes again. The President used his personal Twitter account to say he has no recordings of his conversations with former FBI director James Comey. 






    Trump had previously raised the possibility of tapes in a tweet before Comey's Capitol Hill testimony about their encounters.
  • U.S. banks have enough capital to keep trading during an extreme economic recession. This according to the Federal Reserve's stress tests. 

    Under the Fed's scenarios, banks would suffer significant losses, but be strong enough to continue lending to households and businesses. 

    Results from a second round of stress tests will be out next week. We'll find out then what the Fed thinks about banks' plans to return capital to shareholders.
  • British Prime Minister Theresa May has told EU leaders that European citizens living legally in the U.K. will be allowed to stay after Brexit.
     
    European heads of state, including German Chancellor Angela Merkel and Austrian Chancellor Christian Kern, have welcomed the offer as a good first step.
  • Healthcare stocks led narrow trading stateside as Senate Republicans revealed their healthcare plan.
     
    It includes large cuts to Medicaid and a defunding of the Planned Parenthood organisation. UnitedHealth was the biggest gainer, with the Health Care Select ETF hitting an intraday high earlier in the session.
     
    The S&P 500 healthcare sector rose more than 1 percent.
     
     
  • The Dow Jones and S&P fell into negative territory towards the end of yesterday's session. Meanwhile, the Nasdaq posted back-to-back gains.
     
    Health-care stocks led gains, while banks contributed large losses on concerns about the results of central bank stress tests.
     
     
  • A mixed session for Asian shares. The Nikkei and Hang Seng were broadly flat. Meanwhile the Shanghai Composite fell 0.6 percent.
     
     
  • These are the top headlines for the hour.
     
    • The U.S. healthcare sector hits an all-time high on the Republican's draft bill to scrap Obamacare, despite concerns that some Senators could stand in its way.
    • Meanwhile its a clean bill of health for America's banks. All major lenders pass the Federal Reserve's latest stress tests, raising the prospect of a pick-up in payouts to shareholders. 
    • 'It's a good start', says Angela Merkel of Theresa May's plan to guarantee the rights for EU citizens living in Britain, if the favour is returned by the continent.
    • Shares in Wanda and Fosun recover from sharp losses amid reports China's bank regulator told lenders to investigate the systemic risk posed by these firms.
  • David Bloom, global head of foreign exchange strategy at HSBC, agrees that if President Trump fails to get this new health-care bill through Congress, the dollar will weaken.
     
    We see downgrades coming through from people who are looking for big fiscal plans coming through from the United States in 2018, and the idea is a fiscal push by the government increases GDP accounts and multiplier effects.
     
    And thinking cyclically, not structurally, boosts to the economy means the Fed is more likely to raise interest rates, the dollar goes up. They don’t do it, the economy is a little slower than you thought, and therefore the Fed’s a little more cautious, and therefore the dollar doesn’t do what you expect it to do.
     
    Bloom says they initially upgraded GDP forecasts and were more bullish on the dollar when Trump was first elected. Now they are more cautious and clawing back.
     
     
  • A "pressing" need to raise rates. That's the view of Kristin Forbes, an outgoing member of the Bank of England's Monetary Policy Committee.
     
    In her last speech as an MPC member, she warned that the weak pound is stoking inflation risk. This contradicts the recent take of her boss Mark Carney, who said now is not the time to raise rates.
  • Prime Minister Theresa May is arriving at the EU summit in Brussels.
     
    She says she wants to give certainty to EU nationals living in the U.K., but wants to secure the same for British nationals living in Europe.
     
    Last night I was pleased to be able to set out what is a very fair and a very serious offer for EU citizens who are living in the U.K. and the government will set out more detailed proposals on Monday. I want to reassure all those citizens who are in the U.K., who've made their lives and homes in the U.K. that no one will have to leave, we won't be seeing families split apart. This is a fair and serious offer.
     
     
  • Allied Irish Bank is to price its IPO at 4.40 euros per share today. The bank bank expects conditional trading to start on Irish London exchanges on Friday, with unconditional trading expected to start on June 27.
     
    Ireland's finance minister says the IPO is more than 4 times oversubscribed. Total gross proceeds from the offer will e around 3 billion euros. The minister says based on the offer price, the bank's market cap will be around 12 billion euros, and adds that this creates a strong platform for the state to recover all the money invested in the bank.
  • Global CFOs have a brighter view about the Eurozone and U.S. than Britain. That's just one of the insights from our CFO Council, which is speaking out in CNBC's quarterly survey.
     
    CFOs expect to see improvement in the Eurozone and American GDP. But they believe the economic situation in Britain will just remain stable.
     
     
    Meanwhile, today marks the first anniversary of the Brexit vote and our CFO Council members are feeling better later about how it will turn out.
     
    30 percent say they're "more optimistic" about the outcome. 23 percent say they're "more pessimistic." Another 31 percent haven't changed their opinion.
  • Final Q1 GDP for France grew 0.5 percent quarter over quarter, revised up from a previous estimate of 0.4 percent, according to INSEE.
     
    Meanwhile, French household savings rate rose to 14 percent in the first quarter, while corporate profit margin fell to 31.7 percent. Household disposable income was up 0.1 percent quarter over quarter.
  • European markets are now open for Friday trade.
     
    The Stoxx 600 finished pretty much flat on Thursday, finishing just 1 basis point higher. Today, it is moving cautiously to the downside.
     
     
     
  • France's June manufacturing PMI flash estimate comes in at 55.0, better than the 54.0 forecast and up from May's 53.8.
     
    Services flash estimate is 55.3, down from May's 57.2. That's a multi-month low.
     
    The composite PMI flash reading is 55.3, down from May's 56.9.
  • U.S. healthcare stocks rallied after Republican Senators revealed their healthcare plan. It includes large cuts to Medicaid and a defunding of the Planned Parenthood organization. UnitedHealth was the biggest gainer, with the Health Care Select ETF hitting an intraday high earlier in the session.
     
    Europe's health care stocks are proving less responsive. The sector of the Stoxx 600 is up just 3 basis points today.
     
    Here are the best and worst performing sectors today.
     
  • The euro is tracking higher following the release of French GDP and PMI data.
     
    France's services sector PMI showed a slow-down, but the manufacturing sector picked up from May.
     
     
  • These are the stocks in the news today:
     
    • Shares in Bank of Ireland are receiving a boost from what the Irish government called a successful IPO of AIB. Irish Finance Minister Paschal Donohoe said the listing reflects the strength of AIB's prospects and the attractions of Ireland's economy.
    • The CEO of UBI Banca and dozens of top execs could reportedly face a trial over whether the bank obstructed regulators. This according to Reuters, which reports that prosecutors have requested a case. There's also a probe related to possible irregularities in the way shareholders appointed the supervisory board. UBI Banca says it was not aware of the prosecutors' request. In November, it denied wrongdoing and said it has always cooperated with investigators.
    • Rio Tinto has warned it will take a $180 million hit on its first half underlying profit. This as the Australian-British miner said it would have to pay early redemption costs as part of an effort to cut its gross debt by $2.5 billion dollars after completing a planned bond buyback. Rio Tinto has been working to reduce its liabilities in a bid to weather volatile commodity markets.
    • Altice USA shares closed 9 percent higher on the day it made its debut on the New York Stock Exchange. The cable operator's 63.9 million share offering raised $1.9 billion, making it one of the biggest U.S. IPOs this year - second only to Snap INC. Altice hopes the move will open the door to acquisitions. CEO Dexter Goei told CNBC he would "look at buying opportunities in the next 3 or 4 years."
  • These are the headlines following the market open.
     
    • 'It's a good start', says Angela Merkel of Theresa May's plan to guarantee the rights for EU citizens living in Britain, if the favour is returned by the continent.
    • The Irish government hails the success of AIB's IPO as a milestone, after the bank raises 3 billion euros, spurring a rally across the sector.
    • China's CSI Index closes up over 3 percent despite the jitters around Wanda and Fosun amid reports China's regulator warned of their systemic risk.
    • The U.S. healthcare sector hits an all-time high on the Republican's draft bill to scrap Obamacare, despite concerns that some Senators could stand in its way.
     
  • German June flash composite PMI came in at 56.1, lower than May's final reading of 57.4.
     
    Manufacturing PMI is 59.3, also down from May's 59.5, while the services PMI is 53.7, down from May's 55.4.
     
    The euro's dipped a little on the weaker than expected PMI data, but remains up against the dollar.
     
     
  • Almost an hour after the European markets opened, the Stoxx 600 is down around 14 basis points.
     
    Here's a look at how the individual European bourses are performing.
     
     
  • "No."
     
    That was European Commission President Jean-Claude Juncker's response when asked if he has a clearer idea of what the U.K. government wants.
     
    Junkcer was arriving for an EU summit and answered journalists' questions. He responded when asked if Theresa May's proposal to guarantee the rights for EU citizens living in Britain is a step in the right direction.
     
    That's a first step, but this step is not sufficient.
  • Euro zone June flash composite PMI comes in at 55.7, worse than the 56.6 forecast and below May's 56.8.
     
    Output prices index fell to 51.8 from 52.4 in May.
     
    Manfuacturing PMI rose to 57.3 from 57.0 in May. This is the highest reading since April 2011.
     
    The services PMI came in at 54.7, also below expectations, but still indicating expansion.
     
    Lastly, the flash services PMI employment index was unchanged from the previous month at 53.8 .
  • Euro bounces back up on the PMI data release. The stronger manufacturing PMI perhaps making up for weakness in the services sector.
     
     
  • Wei Li, head of investment strategy at iShares EMEA, says market momentum is taking a breather at the moment.
     
    We think that there remains to be upside to be reached for European equities and more broadly for European assets as well. And I think it’s important to manage expectation. If you think what has been fueling the stocks upside since last year, initially we have a period of kind-of growth acceleration, really very rapid catching up with the historical trend, but now we’re going from acceleration to sustained expansion.  
  • President Trump says on Twitter that he has no recordings of his conversations with former FBI director James Comey. NBC's Hallie Jackson has more.

  • Toshiba's CEO says there is no plan to change composition of preferred bidder consortium for chips business before June 28.
  •  
    It is one year to the day since the United Kingdom voted to leave the European Union. The fallout from that vote triggered an immediate dive in the price of sterling.
     
    A new Prime Minister came shortly after, and most recently, a general election.
     
    Almost a year on from the result, negotiations with Europe have begun. Prime Minister May is now offering EU citizens living in the U.K. a "settled status" after 5 years.
     
  • Alex Greer, research officer at Open Europe, says the key thing to watch for Brexit negotiations is what Angela Merkel says.
     
    If you’re looking at where these negotiations are going to be driven from on the European side, the member states, especially member states like Germany, are going to have a big role to play.
     
    Obviously the commission’s in the chair, but they take their brief from the member states, so I think the thing to look at on this offer that Theresa May has made, it’s a serious offer. She’s effectively offering the same status for EU nationals who’ve been here legally for five years the same status as U.K. citizens.
  • Four Arab countries behind a boycott of Qatar over alleged links to terrorism have given it 13 demands, which they say will end the diplomatic crisis.
     
    Conditions include the closure of Al Jazeera television, reduced relations with Iran, and cutting ties with Islamist groups. The Saudi backed list also demands the closure of a Turkish military base in the Qatar. Leaders there have refused to negotiate under boycott. 
  • North Korea claims it had given medical treatment to Otto Warmbier and brought him back alive after his heart nearly stopped, Reuters reports citing KCNA.
     
    Warmbier was an American student who was detained by North Korea for admitting to trying to steal a propaganda sign. he was sentenced to 15 years in prison, but was released in a coma and died days after in a U.S. hospital.
     
    North Korea says it is the "biggest victim" of the Warmbier indicdent. The country says Warmbier's death after he was returned to the U.S. is a mystery. The country says claims that Warmbier died as a result of torture and beating is "groundless", instead saying Warmbier is a "victim of the policy of strategic patience of Obama."
  • Goldman Sachs was the biggest loser in the Dow in Thursday's session, dragging the financial sector over half a percent lower on the day.
     
    Over 3 months, shares in the company are down nearly 5 percent.
     
     
  • Dick Bove, vice president of equity research at Rafferty Capital Markets, says the Federal Reserve stress tests show U.S. banks aren’t facing any difficulties at the moment.
     
    It indicates that they can generate staggering amounts of capital over relatively short periods, because think about where they were in 2007-2008 to where they are today and the fact is that they’ve grown hundreds of billions of dollars of capital.
     
    But what I’m really interested in is what it shows me as to which stocks I should be buying right now and which ones should I be avoiding.  
     
    The stress test is pretty much saying that companies that are heavily involved in the credit card business have the biggest risk in an adverse scenario. Companies that are trading with counter-parties have staggering risk in adverse scenarios. And companies that tend to have relatively low loan to deposit ratios have minimal risk in adverse scenarios.
     
    Bove says credit card companies like Discover and Capital One, as well as Goldman Sachs and Morgan Stanley, should sell at significant discounts to other banks, while BNY Mellon, State Street and Northern Trust are undervalued.
     
     
  • U.S. markets finished fairly flat in yesterday's session, with the Dow and S&P moving into negative territory.
     
    The markets are called higher for Friday's session and look set to recover yesterday's losses. Future values predict the indexes will open cautiously higher.
     
     
     
  • London police say the Grenfell Tower fire in north London was started in a Hotpoint fridge freezer.
     
    The police says the insulation and tiles used in the tower's cladding failed all safety tests. They say no extra people are reported missing in the tower block but are concerned they do not have the full picture.
     
    The police say they are considering manslaughter among possible criminal offenses that might have been committed.
  • Here's what's to come from the U.S. today.
     
    At 9:45 a.m. ET we have June manufacturing and services PMI data for the U.S. Manufacturing and services came in at 52.7 and 53.6 in May respectively and they are forecast to come in at 53 and 53.5.
     
    At 10:00 a.m. ET we have May new home sales. This is forecast at 590,000, up 3.7 percent, from 569,000 in April (which fell 11.4 percent from the month before).
     
    On the earnings front, Blackberry and Finish Line are set to report earnings before the bell.
     
  • Nine people are confirmed dead and 79 are assumed dead as a result of the Grenfell Tower fire, the police say.
     
    Emergency services received more than 600 calls on the night of the blaze.
  • Portugal's budget deficits in the 12 months to March was 1.7 percent of GDP, according to INE.
  • Norway's sovereign wealth fund should be split from the country's central bank, a commission reform proposal suggests.
     
    The proposal says Norway's central bank should have a committee for monetary policy and financial stability and an independent board.
  • As at late Friday morning London time, we are seeing a bias to selling across Europe
     
    Euro zone PMI growth unexpectedly slowed to 55.7 in June, down from 56.8 in May. A reading above 50 indicates growth. Shares actually rose after that data release.
     
    More relevant to the sell-off is the continued pressure on the oil price as global glut concerns continue to persist.
     
    Autos, Chemicals, and Food & Beverage are the three worst performing sectors at 11:25 a.m. London while Real Estate, Retail, and Basic Resources have managed to sit in positive territory.
     
     
     
  • Oil prices are up in session, but crude is firmly on course for its worst first-half decline in almost two decades.
     
    A repricing of oil prices has been in place since mid-2014.
     
    Production caps have not convinced traders that oversupply is aboutoe ned any time soon. More on the oil story can be found here.
  • The North American firm Whirlpool say "words cannot express our sorrow" after U.K. police have identified a Hotpoint fridge freezer as the original source of the fire at the Grenfell Tower fire in London.
     
    Whirlpool owns the European rights to Hotpoint.
     
    Seventy-nine people are feared dead after the blaze destroyed 151 apartments in the tower block.
     
    Det Supt Fiona McCormack, who is overseeing the investigation, said Friday that the fire was not started deliberately.
     
    She said manslaughter charges are among a number of offenses being considered by police. The police officer said a number of documents from different organizations had already been seized.
     
    McCormack said the insulation fixed to the outside of the building is under particular scrutiny.
     
    "What we are being told at the moment by the Building Research Establishment is that the cladding and insulation failed all safety tests.”
     
    Whirlpool says it is working with authorities to assist with the investigation and Consumers who think they have a fridge freezer with the model number FF175BP or FF175BG should call a hotline. The company has also put a notice on its website.
     
     
    Whirlpool has this morning been initiated as Neutral by Credit Suisse.
     
    On Tuesday, Jeff Fettig announced he will step down as the CEO of Whirlpool. He will remain as chairman. There is no suggestion his decision is related to the fire.
  • Sterling remains on the front foot as traders in New York get to work.
     
    The sudden surprise shift to a more hawkish debate at the Bank of England is lending some credence that the central bank will raise rates as early as August 2017.
     
    The last time the BOE raised rates was in July 2007.
     
    BOE Governor Mark Carney and his Chief Economist Andy Haldane appear to be at odds over support for a hike, with the former arguing that now is not the time.
     
     
  • The German Finance Minister Wolfgang Schaueble has said Britons were lied to during the campaign prior to the referendum on EU membership.
     
    German Finance Minister Wolfgang Schaueble
     
  • U.S. stock index futures pointed to a flat to lower open on Friday, as investors await the latest economic releases and speeches from Federal Reserve members, while maintaining a close eye on oil.
     
     
    On the final day of trading for the week, economic data is expected to keep investors busy with manufacturing PMI data and services PMI data due out at 9:45 a.m. ET/ 2:45 p.m. London, followed 15 minutes later by the latest new home sales data.
  • WTI and Brent crude have both fallen around 4 percent so far this week, leaving it in a technical bear market as prices are down more than 20 percent so far this year. Brent fell below $45 for the first time this year on Thursday before recovering.
     
    Nannette Hechler-Fayd'herbe, global head of investment strategy & research at Credit Suisse says her firm likes oil at this price.

    Since the coming up of shale oil in the U.S., (oil) has been caught up in this broad range between $40 and $60 and we are again testing this lower bound. Whether one likes it or not, there are a number of shale producers that are really not going to look very profitable at this moment.
     
    Oil is staging a bit of a rebound today.
     
     
  •   
    If you need to have an understanding of the latest issues surround the Qatar blockade you could worse than to read this.
     

    Amid Gulf blockade of Qatar, attempts to muzzle Al-Jazeera are likely to fail

    CNBCQatar has been forging an independent foreign policy since the discovery of gas and a palace coup.
  •  
    Caterpillar is the biggest loser on the Dow Jones at the open.
     
    Earlier, Caterpillar was downgraded to “hold” from “buy” at Deutsche Bank, which also cut its price target on the heavy equipment maker’s stock to $106 from $121.  
     
     
    Deutsche notes that its forecast for the company’s earnings are well ahead of Street consensus, but it feels that optimism surrounding a rebound in CAT’s key markets is already reflected in the stock’s price.
  •  
    Caterpillar dragging on the Dow.
     
     
    Caterpillar had some great numbers recently but oil firms use so much of its product. Caterpillar need the oil price to rise.
    - CNBC's Jim Cramer
     
    Caterpillar (China) Investment Co., Ltd. Machine demo operation & watch, Tianjing , China, on June 4, 2008.
     
  •  
    Gold is close to crossing up through its 50-day moving average level.Spot gold is trading at levels not seen since June 15th when it traded as high as 1,268.5.
     
     
    And that is helping U.S. listed shares of gold producers.
     
     
  • U.S. major equities have switched from mildly lower to mildly higher. 
     
    U.S. oil futures for August delivery have gained about half a percent to $42.99 a barrel after a decline in the IHS Markit U.S. Output Composite index hit a three-month low, pushing the dollar lower and lifting crude prices. This according to John Kilduff, founding partner at Again Capital.
     
     
  • Where should you go when oil falls? This data might help you out.

    by david.reid




  • European markets moving lower today. This after the euro zone PMI for June came in at a 5 month low but the moves today more seen as a reflection of lower oil prices.

    Leaders in Europe finished a 2-day meeting earlier. 


     And that is where will leave the blog today. Thanks all.

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