World Markets Live - June 27 - CNBC Live Events
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CNBC Live Events

World Markets Live - June 27

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 here are your headlines:
     
    • ECB President Mario Draghi defends his easy monetary policy, saying it creates jobs and reduces inequality, as he warns of the risks of unwinding these policies too soon. 
     
    • At the World Economic Forum in Dalian, Chinese Premier Li Keqiang says the country will achieve its growth targets despite systemic risks still present in the economy.
     
    • Triumph for President Trump's travel ban, as the Supreme Court allows some of it to take effect. But his healthcare overhaul remains in deadlock as the CBO warns it will leave 22 million Americans without insurance.
     
    • And Japanese stocks edge up towards 2-year highs, supported by a stronger dollar.
  •  
    The Nikkei is about 100 point shy of a technical level that watchers believe can be hit by the Japanese market in current conditions.
     
    The Nikkei is an export heavy index and therefore when the dollar strengthens, the yen is relatively weak and Japanese stocks become attractive.
  • U.S. equities closed mixed on Monday as a rise in the financials sector helped offset losses from large-cap technology stocks.
     
     
    The Dow Jones industrial average snapped a five-day losing streak, advancing about 15 points in choppy trade, with Goldman Sachs contributing the most gains. The 30-stock index briefly rose more than 100 points earlier in the session.
     
    The S&P 500 closed flat, with utilities, telecommunications and financials leading advancers.
     
    The Nasdaq composite lagged, ending 0.3 percent lower as Facebook, Amazon and Alphabet gave up initial gains to close lower.
     
    We have Yellen speaking in London at 6 p.m. local.
     
    Data (all times eastern)
    0405 Fed's Williams Speaks
    0900 S&P Case-Shiller Home Price Index
    1000 Consumer Confidence
    1000 Richmond Fed Mfg Index
    1115 Fed's Harker Speaks
    1300 Fed's Yellen Speaks
    1300 5-Yr Note Auction
    1730 Fed's Kashkari Speaks
  • A dovish Mario Draghi has defended the ECB's ultra loose monetary policy stance at a town-hall meeting in Sintra, Portugal.
     
    Speaking to an audience of students, the central bank president cautioned against the destabilizing effects of inequality, urging governments to pursue better wealth distribution policies.
     
    Draghi also warned that a premature end to monetary easing could lead to another recession.
     
     
  • Chinese Premier Li Keqiang says the country's growth is "encouraging", as it seeks to ease market access for the service and industrial sectors.
     
    Speaking at the World Economic Forum in the northeastern port city of Dalian, Li says his government will maintain stable macroeconomic policies, implement proactive fiscal policy, and provide prudent monetary policy.
     
    Premier Li also took the opportunity to warn on globalization risks:
     
    Globalization is bringing benefits to all countries.  But if they can't fully harness the benefit they will also encounter some challenges.  But just like when we sprain our ankle while walking, we should not blame the uneven road and stop walking.  We need to better steer and adapt to economic globalization, promote trade and investment, liberalization and facilitation, and reform trade rules to ensure equal rights.
     
    Chinese Premier Li Keqiang
     
  • Disclosure: Comcast is the owner of NBC Universal, the parent company of CNBC and CNBC.com.
     

    Sprint reportedly in exclusive talks with Charter, Comcast in bid to offer wireless service

    CNBCSprint is in exclusive talks with Charter Communications and Comcast on a potential wireless services deal, the WSJ reported, citing sources.
  • Back from the brink,  that's one way to describe AlB's return to the market last week. After being nationalized by the Irish government in 2013, the sale of almost 29 percent of shares saw a return of over 3 billion euros.
     
    It has been hailed a "significant milestone" by Finance Minister Pascal Donohoe, who says it shows the "attractions of Ireland's growing economy." After such a positive return, many are keeping a keen eye on AIB today as it begins it's first full day of trading. 
     
    Bernard Byrne, CEO of  AIB is on air and says there is a strong support base for the company which is within "touching distance" of getting its previous value back..
     
    Byrne says the Irish government is still a 75 percent owner of the bank and further opportunities for investor may exist down the line.
     
     
    Byrne says Ireland and its economy is in a good place at this time and AIB is a good investor proxy for that story.
  • BMW will invest $600 million dollars in a South Carolina plant, as it seeks to boost manufacturing capabilities for future generations of its SUVs. The investment will also add a thousand jobs at the US facility. 

    Phil Lebeau visited the plant.

    by david.reid

  • The U.S. government has said Syria will pay "a heavy price"  if it conducts a chemical weapons attack.

    A Reuters report says the U.S. has identified potential preparations for another attack, comparing the activity to that undertaken before a chemical attack in April that killed dozens of civilians.

    That prompted Donald Trump to order a cruise missile attack on a Syrian air base.

    The United States has identified potential preparations for another chemical weapons attack by the Assad regime that would likely result in the mass murder of civilans, including innocent children.

    - White House spokesman Sean Spicer

    If Mr. Assad conducts another mass murder attack using chemical weapon, ha and his military will pay a heavy price.

    - White House spokesman Sean Spicer

  • Mar Gudmundsson, Governor of the Central Bank of Iceland is on air with Annette in Sintra, Portugal.
     
    Iceland is not in the euro zone and has a rapidly growing economy.
     
    He says Iceland is at risk of overheating and while this is a very different problem than for many countries within the euro zone, he would prefer if Draghi and his team would normalize rates soon.
     
     
    Gudmundsson says the recent appreciation of the Icelandic Crown is based on fundamentals such as increased tourism and is justified.
     
    On capital controls, Gudmundsson says they are almost completely removed since their introduction in 2008.
     
    The ECB Forum in Sintra will be opened by the central bank's president, Mario Draghi, later today.
  •  He's upsetting journalists again. Is that a smart move for any press officer?
  • Tuesday fact!
     
    Today marks the 50th birthday of the ATM. The first machine was at a Barclays branch in Enfield, London in 1967. Now there are more than 3 million ATM's worldwide.
     
    The first automatic teller machine was installed in London in 1967, with John Shepherd-Barron being credited with inventing the machine.
     
  •  
     
    As Steve says, opening calls are looking a touch "soggy" with a little more than 30 minutes to go until equity trade kicks into gear.
  • Time for a reminder of our top market moving news today:
     
    • ECB President Mario Draghi defends his easy monetary policy, saying it creates jobs and reduces inequality, as he warns of the risks of unwinding these policies too soon. 
     
    • Shares in Schaeffler are called to open over 10 percent lower after the auto parts supplier warns of lower profits and free cash flow.
     
    • AIB prepares to return to the market after exiting its 2013 government bailout, in Europe's biggest IPO of the year. The bank's CEO tells this program Ireland is in good shape. 
     
    • Shares of Stada are called to open more than 6 percent lower after a bid for the generic drugmaker from Bain Capital and Cinven falls through. 
  • Geoff is in Dalian, north east China for the the World Economic Forum. He says Europe seems to be a sidelined story at the forum with perhaps the exception of Italy.
     
    Carla Ruocco of the populist 5-Star Movement is with Geoff and says recent disappointment in regional elections is "not a crisis" for the 5-star movement.
     
     
    Ruocco says Italian citizens want fresh government that will challenge Brussels and that previous Prime Minister Matteo Renzi failed in this regard.
     
    The 5-Star member says the decision of the Italian government to provide support to two bank bailouts this week was incorrect.
     
    She argues banks should be helped but there needs to be strings attached with such deals.
  • On set, Guy de Blonay, Director of Jupiter Asset Management says the apparent political comeback of former Italian leader Silvio Berlusconi is serious "to the point of offering an alternative to the populist 5-Star movement".
     
    A reminder that Berlusconi is 81-years-old.
     
     
    de Blonay says this week's bailout of two Italian banks was the best deal that is on offer.
  • Former Barclays CEO Antony Jenkins said in 2015 that banks would face an UBER moment.
     
    He's backed that up with claims that technologies like blockchain are becoming more viable as costs fall.
     
    It's been a volatile time for cryptocurrencies. Ethereum sank 24 percent yesterday, dragging Bitcoin down over 8 percent. 
     
     
  • European markets are now open for trading. The pan-European Stoxx 600 has opened slightly lower this morning:
     
     
  • Let's take a look at the major European indexes. Most of them tilting lower after the president of the European Central Bank, Mario Draghi, defended the bank's loose monetary policy and said a premature ending to easing could lead to another recession.
     
     
  • Here is the latest in bank consolidation...Spain's Bankia is buying Banco Mare Nostrum - or BMN in an 825 million euro deal. The Spanish lender said it is buying the mid-sized bank through a share swap. Bankia plans to raise capital to fund the deal.
     
     
  • Intesa Sanpaolo's acquisition of Veneto Banca and Banca Popolare di Vicenza is credit positive. That's according to Moody's. They believe the deal is good for the Italian banking system as it addresses the risk of contagion and unlocks economies of scale.
     
     
  • Let's take a look at the best and the worst performing stocks this morning:
     
    Shares in Schaeffler are under pressure after issuing a profit warning. The stock is at the top of the worst performing stocks this morning.
     
    The German auto parts supplier cut its guidance due to soaring R and D costs and growing pricing pressures. Schaeffler now sees its 2017 adjusted EBIT margin at 11 to 12 percent.  
     
     
     
     
     
  • Michel Perera, Chief Investment Officer, Canaccord Genuity has joined Guy de Blonay as our guests on set.
     
     
    He starts of with a question over investing in Russia and other emerging markets.
    You get what you pay for. The most expensive emerging markets in the world have better governance. We prefer India, but it has better governance than Russia.
     
    On the trillions sloshing around stocks, he said it is not just down to central banks that we see high valuations.
    We are in this Goldilocks environment where we have low inflation and moderate growth. For a lot of businesses the moderate growth is sufficient and the Fed is likely to take a pause fora t least a couple of meetings. 
     
    He says it only becomes a problem where we see an excess in the markets and he doesn't see any excess right now.
    People are talking about car loans, but this is extremely small in comparison to something like sub prime.
  • Shares in Deutsche Telekom have fallen around 3 percent this morning after reports that T-Mobile and Sprint talks are on hold.
     
     
    Separately, Sprint is in exclusive talks with Charter Communications and Comcast on a potential deal for the cable companies to offer wireless services on the carrier's network, the Wall Street Journal reported late Monday, citing people familiar with the matter.
     
    Canaccord Genuity's Perera says Telecoms are a low growth sector and he prefers to look to the tech sector for returns.
     
    Perera says the sector is currently in a period of consolidation and the outcomes of that can be hard to predict.
  • Here are your top stories at this hour:
     
    • The consolidation continues. Bankia agrees to buy smaller rival BMN in a deal that creates a bank with 230 billion euros in assets. We speak to Bankia's CFO, first on CNBC at 11:25 CET. 
       
    • A Russian court "arrests" some shares of Russian conglomerate Sistema, sending the stock lower, as the legal dispute with oil giant Rosneft rages on. 
       
    • Schaeffler shares sink to the bottom of the Stoxx 600 after the auto parts supplier warns of lower profits and free cash flow.
       
    • Shares of Generic drug maker Stada plummet after a potential takeover from Bain Capital and Cinven falls through. 
       
  • Stocks here in Europe have been trading for half an hour and you can see the red setting in:
     
     
  • Volker Wieland, Member, German Council of Economic Experts joins us live from ECB forum in Sintra to shed light on ECB's monetary policy: 
    I think the ECB should do more. I think they should signal and explain how eventually they will unwind this huge asset purchase program. But in terms of what I expect to happen is a different thing. I don't think we need to expect much. There will be hints here and there, more hawkish tones but I don't expect any major change in ECB's policy.
     
     
  • The euro is trading flat against the dollar as investors wait for ECB President Mario Draghi's speech live from the ECB Forum in Sintra:
     
     
  • America's image has suffered in the few months since President Trump has become leader, according to a report from the Pew Research Centre.
     
    Currently, 49 percent of citizens across 37 countries are favorably inclined to the United States, down from 64 percent in the final years of the Obama Presidency. 
     
    James Bell, VP for Global Strategy at Pew Research Center is on set.
     
    This is a downward shift and it is dramatic.
     
    Bell points out that such a dramatic effect has only been seen once before and that was in reverse, when Obama first came to power.
     
    he says "arrogant" and "dangerous" are words now commonly associated with Trump's style but on the flip side he is credited with being a strong leader.
     
    Trump has an image problem.
     
  • Here are your top stories at this hour:
    • The consolidation continues. Bankia agrees to buy smaller rival BMN in a deal that creates a bank with 230 billion euros in assets. We speak to Bankia's CFO, first on CNBC at 11:25 CET. 
    • A Russian court "arrests" some shares of Russian conglomerate Sistema, sending the stock lower, as the legal dispute with oil giant Rosneft rages on. 
    • Schaeffler shares sink to the bottom of the Stoxx 600 after the auto parts supplier warns of lower profits and free cash flow.
    • Mario Draghi defends his easy monetary policy, as he warns about the risks of unwinding these policies too soon.  The ECB President is due to speak in Sintra in a few moments time - we'll bring you that speech live.
       
  • ECB's Draghi says all the signs now point to a strengthening and broadening recovery in the euro area, deflationary forces have been replaced by reflationary ones. 
     
    An accurate diagnosis of this apparent contradiction is crucial to delivering the appropriate policy response. And the diagnosis, by and large, is this: monetary policy is working to build up reflationary pressures, but this process is being slowed by a combination of external price shocks, more slack in the labour market and a changing relationship between slack and inflation. The past period of low inflation is also perpetuating these dynamics.
  • Draghi says a considerable degree of monetary accommodation still needed for inflation dynamics to become durable and self-sustaining.
     
    Though the euro area recovery started later than those in other advanced economies, we have now enjoyed 16 straight quarters of growth, with the dispersion of GDP and employment growth rates among countries falling to record low levels. If one looks at the percentage of all sectors in all euro area countries that currently have positive growth, the figure stood at 84% in the first quarter of 2017, well above its historical average of 74%. Around 6.4 million jobs have been created in the euro area since the recovery began.
     
  • Euro has hit a session high of $1.210 against the dollar as ECB's Draghi speaks live from the ECB Forum in Sintra:
     
     
  • Draghi says we will need to be gradual when adjusting our policy parameters:
     
    As the economy picks up we will need to be gradual when adjusting our policy parameters, so as to ensure that our stimulus accompanies the recovery amid the lingering uncertainties.
     
    SPAIN-EU-ECONOMY-CONFERENCE : News Photo
     
    Inflation has indeed been subject to such shocks over recent years, most notably the oil and commodity price collapse in 2014-15. This not only depressed the cost of imported energy, but also lowered global producer prices more generally. ECB analysis suggests that the global component in the underperformance of euro area inflation in recent years was considerable. In 2015-16, around two thirds of the deviation of euro area headline inflation from a model-based mean can be accounted for by global shocks linked to oil prices.
  • Euro extends gains to hit 9-day high of $1.242 after Draghi's comments:
     
     
     
  • Draghi is talking about labour market in Europe:
     
    Labour supply has become more elastic due to immigration, particularly in strongly growing economies such as Germany. Since 2007, the euro area participation rate has risen by around 1.5 percentage points, whereas in the United States it has fallen by more than 3 percentage points in the same period.
  • The pan-European Stoxx Europe 600 has hit session low, down nearly 0.7 percent as Draghi speaks:
     
     
     
  • Major European indexes are heading south as Draghi says the ECB will be gradual when adjusting its policy parameters:
     
     
  • Draghi talks about the pressure on inflation from oil price fluctuations:
     
    Inflation has indeed been subject to such shocks over recent years, most notably the oil and commodity price collapse in 2014-15. This not only depressed the cost of imported energy, but also lowered global producer prices more generally. ECB analysis suggests that the global component in the underperformance of euro area inflation in recent years was considerable. In 2015-16, around two thirds of the deviation of euro area headline inflation from a model-based mean can be accounted for by global shocks linked to oil prices.

    Even though the downward pressure on inflation from past oil price falls is now waning, oil and commodity prices are still having a dragging effect – if only because they continue to lack a clear upward trend. In fact, lower oil and food prices than those assumed in the March 2017 projections are an important factor behind the downward revision of our latest inflation forecasts.
     
     
  • Draghi talks about the impact of geopolitical uncertainty on the euro are:
     
    A considerable change from three years ago is the clarification of the political outlook in the euro area. For years, the euro area has lived under a cloud of uncertainty about whether the necessary reforms would be implemented at both the domestic and Union levels. This acted as a brake on confidence and investment, which is tantamount to an implicit tightening of economic conditions. Today, things have changed. Political winds are becoming tailwinds. There is newfound confidence in the reform process, and newfound support for European cohesion, which could help unleash pent-up demand and investment.
  • ECB's Draghi says reflationary dynamics are slowly taking hold:
     
    With reflationary dynamics slowly taking hold, we now need to ensure that overall financing conditions continue to support that reflationary process, until they are more durable and self-sustaining.

    As the economy continues to recover, a constant policy stance will become more accommodative, and the central bank can accompany the recovery by adjusting the parameters of its policy instruments – not in order to tighten the policy stance, but to keep it broadly unchanged.
  • ECB's Draghi concluded by saying that while a number of factors are at play, they are mostly temporary:
     
    While there are still factors that are weighing on the path of inflation, at present they are mainly temporary factors that typically the central bank can look through. However, a considerable degree of monetary accommodation is still needed for inflation dynamics to become durable and self-sustaining. So for us to be assured about the return of inflation to our objective, we need persistence in our monetary policy.
  • European Competition Commissioner Margrethe Vestager will hold a news conference on a competition case at 1200 CET (10 GMT), the European Commission said on Tuesday, with sources saying she would announce her verdict on a case concerning Alphabet's Google, Reuters reported.
     
    EU antitrust regulators are likely to impose a record fine on Google over its shopping service as soon as Tuesday, two people familiar with the matter said on Monday, concluding one of three cases against the company.
  • German bund yield extends rise to one-week high of 0.288 percent, up 3.5 basis points on day:
     
     
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