World Markets Live - June 30 - CNBC Live Events

CNBC Live Events

World Markets Live - June 30

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

    Welcome to the World Markets Live Blog, here are your headlines:
    • US stocks catch the bond market's cold, with the big tech names dragging the major averages lower and the Nasdaq on pace for its worst week of the year. The CEO of Morgan Stanley tells CNBC we could see the sell-off last.
    • BUT equities still look poised to lock up a bullish performance year-to-date, with the Nasdaq set to post its best first half since 2009, while oil comes out as one of the big losers, with WTI on pace for its third negative year.
    • Nike strikes a deal it has long avoided, selling its sportswear on Amazon and sending its shares more than 7 percent higher in after-hours trade. 
    • Blue Apron serves up a less than appetizing performance in its market debut, as the meal service vastly underperforms 2017's other big IPOS.
    Investors have digested economic data out of Japan and better-than-expected official PMI data out of China butTech stocks in South Korea and Japan sold off, following the fall in tech stocks stateside overnight.
    The dollar traded at a fourteen-month low against the euro overnight on expectations of other central banks turning hawkish.
    This all following U.S. markets which fell Thursday as technology's latest drop washed out strong gains from the big banks.
    Shares of Facebook, Amazon, Netflix, Apple and Google-parent Alphabet all dropped more than 1 percent. Chip stocks also fell, with Nvidia and Advanced Micro Devices closing 3.3 percent and 4.8 percent lower, respectively.
    The Dow Jones industrial average fell 168 points with Apple, Boeing, and 3M contributing the most losses. The 30-stock index briefly fell more than 250 points earlier int he session.
    The S&P 500 pulled back 0.9 percent, with information technology sliding 1.8 percent. The S&P also traded below its 50-day moving average for the first time since May 18.The Nasdaq composite lagged, falling 1.4 percent.
    James Bullard, President of the St. Louis Federal Reserve Bank is on set with Karen and Steve.

    Bullard: I have a flat rate path compared to rest of committee

    Bullard has been the St Louis Fed president since 2008 and is currently a non-voting member. He has been described as a "deflation hawk" for favoring policies that would raise inflation to a target of 2 percent per year.

    Bullard tells Steve that the Fed committee has been "too hawkish for the data" over the last 90 days or so.

    The narrative of the committee has been that inflation is creeping back to 2 percent and you can see that in some of the data but since Spring you can see it has gone in the opposite direction.

    Bullard says right now he is "the most dovish member" of the Fed committee.
    Some European stock calls from JP Morgan.

    The bank has cut the price target on both U.K. brewer and pub chain owner Greene King as well as retailer Debenhams.

    JP Morgan has raised its price target on Portuguese food group, Jeronimo Martins.

    A barmaid pulls a pint in The Harp pub in England. 

    French inflation data has shown a June CPI reading of 0.0 percent month-on-month, equating to 0.7 percent year-on-year.
    That matching forecasts.
    The consumer spending price data for May rose 1.0 percent month-on-month versus a forecast 0.5 percent.
    German Chancellor Angela Merkel said on Thursday that European countries will work at the upcoming G-20 summit to find "joint solutions" with the US on climate change and other issues.

    Merkel told reporters in Berlin that the "US is an important part of the G-20" and that even though the European summit participants are united in standing by the Paris climate accord, even after the Trump administration has decided to pull out, they would work to find "joint solutions".

    The leaders are meeting ahead of the upcoming G20 summit in Hamburg. 

    The comments came after meetings with her counterparts from France, Italy, the Netherlands, Spain and Norway, and EU representatives.

    Merkel said European G-20 participants are united behind the Paris climate accord despite the American decision to pull out of the deal.

    Regarding the fight against climate change, we talked about it today that we are all standing by the Paris agreement, this is also a very important message to the developing countries. We regret, and I am least speaking for Germany, that the US pulled out of the Paris agreement, but we will of course discuss these questions of climate change in Hamburg.

     - German Chancellor Angela Merkel speaking at a news conference on Thursday after meeting other EU leaders.

    James Bullard, President of the St. Louis Federal Reserve Bank, shared his thoughts on the Bank of England’s approach to monetary policy.
    They’ve been trying to get to a good policy and I think you;ve got to judge them by results. Are you happy with the inflation rate in the U.K. over the last five years? Are you happy with the economy’s performance? 

    I think they came through Brexit pretty well, at least for the first year. There may still be repercussions, I don’t know. I think overall the track record seems pretty good.
    Earlier this week, BOE Governor Mark Carney signalled that the central bank may need to start removing fiscal stimulus, depending on factors such as wages, inflation and economic reactions to Brexit negotiations.
    European markets are now open, with the Stoxx 600 moving cautiously higher at the start of Friday's session. 

    A profit warning.

    Bayer has announced its crop science division will have to adjust its business forecast for the fiscal year. It says this will have a one-time impact of 300 million to 400 million euros on earnings for full year 2017.
    Bayer adds that stocktaking revealed unexpectedly higher inventories in Brazil. This will also result in adjustments to its forecasts for group sales and earnings.
    Shares in the company are sharply lower on the news.

    The chemicals sector is currently the worst performing sector on the Stoxx 600.


    On set Covestro CEO Patrick Thomas , Thomas says with cash so cheap people are paying ridiculous multiples for assets in his space and they are going to suffer in years to come. 

    I have seen it before in the cycle, where the chemical industry has made some mega acquisitions in the past and some of those companies no longer exist.

    James Bullard, President, St. Louis Federal Reserve Bank says he is sympathetic with the view that asset prices are inflated because of monetary policy.

    But he checks that but pointing out that the question of whether there are bubbles in the market needs to be continuously reviewed.
    Covestro is a German plastics and chemicals group is on the lookout for a merger. 

    The company has announced that it will return cash to shareholders if it can't find a suitable takeover target within 2 years. 

    Patrick Thomas told shareholders in a statement that Covestro has no reason to hoard liquidity as it eyes 5 billion euros in total operating cash flow.
    Thialand's current account for May came to $1.13 billion, according to the country's central bank.
    Exports increased 10.6 percent on the year in May, while imports rose 18.2 percent. It's trade surplus came to $2.23 billion.
    The central bank's international reserves did dip slightly to $184.4 billion for the week ending June 23 from 184.5 billion the previous week.
    Just over half an hour of Friday session trade has occurred. Here are the shares at the top and bottom of the Stoxx 600. The pan-European index is broadly flat.
    These are the top headlines this hour:
    • A muted start for European equities after a weak finish from major U.S. averages.
    • Bayer's stock drops as it warns of lower profits. The firm cites challenges in its crop science and consumer health divisions.
    • A hunger for going public. Food takeaway service Delivery Hero rises in its Frankfurt stock market debut.
    Delivery Hero has arrived on the market. Shares have risen in its Frankfurt debut, as the takeaway start-up is on track to raise around 1 billion euros. The IPO values the company at 4 billion euros.
    Niklas Östberg, CEO of Delivery Hero, says the company has got off to such a good start because they have built a great service.
    He was asked about his company’s IPO compared Blue Apron, shares of which rose by 1 percent in what was a lacklustre market debut by the U.S. meal-kit provider.
    It’s hard to compare to another company, I know them too little. I know that the investors looking into us were very excited about the strength of the business, about the strength of the growth that we’re having.
    I think people are very excited. We were oversubscribed more than 10 times.
    Bank of American Merrill has lowered its WTI crude forecast to an average of $47 a barrel this year and $50 per barrel next year. It has also cut Brent to $50 this year and $52 next year.
    The bank said "with ouput set to rise and oil demand disappointing, global balances point to deficits of 210,000 barrels per day in 2017 and 90,000 per day in 2018."
    "We now believe oil stays in contango by year-end, but see a WTI forward anchor at $45-50 and $5 backwardation by next summer."
    Despite this cut, oil prices are improving today.
    U.K. GDP growth for the first quarter is confirmed at 0.2 percent quarter on quarter and 2 percent year on year, unchanged from estimates.
    Q1 services growth was revised up 0.1 percent.
    Also, the country's current account deficit increased to £16.895 billion in the quarter from £12.088 billion, equivalent to 3.4 percent of GDP. This was less than the expected deficit of £17.25 billion.
    Business investment increased increased 0.6 percent over the quarter.
    The flash estimate for euro area inflation for June has been released.
    The inflation rate is seen at 1.3 percent year on year. It was forecast at 1.2 percent. It was 1.4 percent year on year in May, according to Eurostat.
    Core inflation, excluding unprocessed food and energy, came in at 1.2 percent versus 1.0 percent in May.
    Meanwhile, Greek May producer price inflation at +3.9 percent year on year from +7.9 percent in April.
    The euro is extending losses against the dollar following the euro zone inflation rate data.
    The common currency is now down almost 0.4 percent against its U.S. counterpart.
    Euro zone government bond yields have extended falls today following the inflation data released earlier today.
    Yields on German, French and Italian yields are down around 2 basis points.
    The Stoxx 600 has responded positively to the inflation data, ticking up to around 0.4 percent gains for the day.
    Sky has announced it has agreed to a new five-year partnership with the England and Wales Cricket Board that includes live rights to all international and county cricket from 2020 until 2024. 
    This is the third decade of Sky's partnership with the board. It will also work with the board to develop a new approach to help deliver the board's ambitions of growing the game at all levels.
    The cost of the deal was not disclosed, and shares in the broadcaster are trading lower.
    This comes a day after the U.K. government announced it may refer the 21st Century Fox take over bid of Sky the Competitions and Markets Authority.
    UBS analysts Polo Tang, Michael Hill and Doug Mitchelson said Fox has until July 14 to present solutions to the U.K. government's concerns.
    The U.K. government will then decide whether to proceed with the CMA review or to enter into direct negotiations with Fox over undertaking/remedies. The latter approach was adopted by the government in the original News Corp bid for Sky in 2010/11 and this precedent would suggest deal completion towards the end of calendar 2017 – with Sky shares at an 8 percent discount to the 1075p offer price this is an attractive annualised return.
    Fox state a CMA review would lead to deal completion by June 2018, but we think Fox would be keen to avoid this outcome with the main risk being a new general election that could result in a Labour led government who could be more minded to block the deal.
    The analysts suggested one solution to the concerns is to spin off Sky News, or introduce "legal separation" of Sky News where it has its own board but is owned by Sky News. 
    Britain's Lloyds Banking Group says the Qatari riyal is no longer available for sale or buy-back at its high street bank.
    This comes at the same time the UN Human Rights Commissioner Prince Zeid bin Ra'ad Zeid al-Hussein  says the demands by Saudi Arabia and Arab allies to close down al-Jazeera is an "unacceptable attack on the right to freedom of expression and opinion."
    U.S. stock markets are called higher, according to future values. The markets look set to recover slightly from yesterday's sharp falls (the Dow closes 168 points lower).
    The S&P moved below its 50-day moving average for the first time since May 18.
    On a brighter note, Nike shares are called more than 6 percent higher in premarket trade. The company reported Q4 earnings which beat expectations and confirmed it would begin to sell some products through Amazon.
    Portugal reports its monthly unemployment rate came to 9.4 percent in May.
    The Portuguese stock market is up around two thirds of a percent today, although is down for the week.
    A spokesman for U.K. Prime Minister May says 149 high rise building in 45 local authorities have failed safety tests with a 100 percent test failure rate.
    The spokesman also said the government's position on the public sector pay cap remains unchanged.
    Chile's finance minister Rodrigo Valdés says he wants to negotiate a new trade deal with the U.K. as soon as possible, and could do so in conjunction with other countries.
    That will be good news for fans of Brexit, although the U.K. still cannot negotiate new trade deals until it has left the European Union.
    Rodrigo Valdés adds that Chile and Latin America are much better prepared than in the past for higher global interest rates. He also said the Chilean government has all intentions to complete pension reforms before the next election.
    Fabio Fois, analyst for Barclays, has weighed in on the euro zone inflation data, which eased to 1.3 percent in June from 1.4 percent previously.
    At the non-core level, the downward correction of unprocessed food and energy inflation continues. Fresh food prices declined to 1.0% y/y in June, from 1.6% in May, 2.2% in April, 3.1% in March and 5.3% in February. Energy inflation's downward correction also accelerated, falling to 1.9% in June, from 4.5% in May and 7.6% in April. We believe that improved weather conditions and recent oil price moderation explain these trends. 

    At the core-level, meanwhile, services inflation rebounded to 1.6% in June, from 1.3% in May and 1.8% April. In our view, the sharp rise was essentially driven by package holidays in Germany, which surged 13% m/m, possibly anticipating the seasonal large move that usually takes place in July. Therefore, we do not rule out that the component may turn into a dragging force next month. 
    Fois says that Barclays is sticking to its call that it expects inflation pressures to remain weak over the coming months. The bank forecasts inflation to average 1.6 percent this year and 1.3 percent next year.
    More and more parts of an aircraft cabin will soon be 3-D printed, according to one firm working with airlines and plane makers.

    Stratasys is a 3-D printing manufacturer that, among other industries, prints tools and parts for cars, planes and medical products.

    In 2014, the U.S.-Israeli firm said that its production system had been used to make "more than 1,000 flight parts" for the Airbus A350 XWB aircraft.

    3-D printed parts are making their way into your aircraft cabin

    CNBCThe 3-D printing industry is looking to manufacture more and more elements within commercial aircraft.
    U.S. stock index futures pointed to a higher open on Friday after a sharp sell-off led by technology stocks. Dow futures rose 48 points, while S&P and Nasdaq futures gained 6 points and 24.25 points, respectively.
    Sinn Fein calls on British and Irish leaders to become directly involved in Northern Irish talks. That's according to Reuters citing Sky News.
    Check out which companies are making headlines before the bell:
    Bank of America – Berkshire Hathaway will exercise warrants to buy 700 million common shares of Bank of America, using its $5 billion in preferred shares as consideration. Its exercise price is just above $7.14 per share, well below where Bank of America is currently trading.
    Nike — The athletic apparel and footwear maker posted quarterly profit of 60 cents per share, 10 cents a share above estimates. 
    Blue Apron – Blue Apron is on watch once again today, after the meal-kit company's stock closed Thursday at its initial public offering price of $10 per share and then dipping below that mark in after-hours trading.
    Microsoft – Microsoft will announce a major reorganization on July 5, according to the Puget Sound Business Journal. The paper said the reorganization would better align the company with its cloud business.
    Coach – Canaccord Genuity began coverage on the luxury goods maker with a "buy" rating, with a particularly upbeat take on the benefits of Coach's pending Kate Spade acquisition.
    Tesla – When asked about the possible release date for the automaker's Model 3, CEO Elon Musk simply tweeted "News On Sunday" without elaboration. In the past, Musk has said the Model 3 would be unveiled in July, but has never mentioned a specific release date.
    Click here to see the full list of companies.
    US personal income rose 0.4% in May vs 0.3% increase expected
    The data was forecast to rise 0.3 percent in May, after increasing 0.4 percent a month earlier.
    Kraft Heinz has signed an agreement with Upstate Niagara Cooperative to sell its Campbell, New York facility.
    The deal guarantees 125 jobs at the facility, growing to 150 within a year.
    It was not reported how much Upstate Niagara will pay for the facility, although the deal is expected to be completed within the next 30 to 60 days.

    As part of the deal, Kraft Heinz will pay an ongoing $3 to $5 million to improve and maintain the facility.
    The French foreign ministry says a watchdog report on chemical weapons use in Syria "unequivocally" proves that sarin gas was used in April.
    The Dow, S&P and Nasdaq are set to finished the week lower, but the Dow and S&P are set to record their 7th straight quarter of gains.
    Nearly all stocks on the Dow are higher, with Nike leading the index after it posted a Q4 earnings beat and reported it would start selling some products on Amazon.

    Dow jumps 100 points on last day of quarter as banks rise

    CNBCU.S. equities opened mostly higher — the last day of the quarter — as banks continued to build on this week's strong gains.
    A "state actor" was behind the cyberattack that hit over 12,000 devices in around 65 countries on Tuesday hitting major industries from advertising to oil, according to NATO.

    The "Petya" ransomware attack encrypted files on a computer and demanded $300 worth of the cryptocurrency bitcoin in order to unlock them. Kaspersky Lab estimates at least 2,000 targets were affected, mostly in Russia and the Ukraine, but attacks were registered in several other countries, including Germany, the U.K. and China.

    NATO says a 'state actor' was behind the ransomware attack and could trigger military response

    CNBCA "state actor" was behind the cyberattack that hit over 12,000 devices in around 65 countries on Tuesday, according to NATO.
    University of Michigan consumer sentiment index at lowest since November 2016. That's according to Reuters.
    Several British banks said on Friday they had stopped dealing in Qatari riyals, as the diplomatic crisis surrounding the tiny Gulf country disrupted overseas trading of its currency.

    Saudi Arabia, the United Arab Emirates, Bahrain and Egypt severed diplomatic and travel links with Qatar on June 5, accusing it of supporting terrorism and courting regional foe Iran, in allegations that have ignited a regional crisis between the U.S. allies.

    Several UK banks stop selling Qatar riyals as diplomatic crisis mounts

    CNBCOffshore trade of the riyal has become increasingly volatile and illiquid as a result of the spat.

    European markets move higher; tech stocks higher; Bayer down 4.3%

    CNBCEuropean bourses were higher on Friday as major central banks suggested the era of cheap money may be coming to an end.
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