World Markets Live - June 30 - CNBC Live Events
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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.

  • 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."
  • The German Parliament today voted to legalise same-sex marriage with a strong majority. The vote comes after Chancellor Angela Merkel dropped her opposition to the idea, allowing Christian Democrats to vote as they wish, rather than follow party lines. The move gives full marital rights to same sex couples and allows them to adopt children.
     
    German Chancellor Angela Merkel with French President Emmanuel Macron
     
    However, Merkel revealed she voted against same-sex marriage, saying that she believes marriage is for a man and a woman. Although she said she hopes the vote will lead to more social peace.
  • Speaking one day ahead of the 20th anniversary of the handover of Hong Kong to China, Chinese President Xi says the success of Hong Kong's "One Country, Two Systems" is for the world to see, according to Reuters.
     
    Xi says there has been new issues and new challenges in implemneting "One Country, Two Systems", but says it best first Hong Kong and the country's long term interests.
     
    Xi says he cannot think of any other piece of political wisdom that is wiser than "One Country, Two Systems".
     
     
  • 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.
     
     
  • Euro zone inflation fell to 1.3 percent in June from 1.4 percent in May, according to flash estimates from Eurostat.
     
    The EU's statistics office outlined what drove the inflation number.
     
    Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in June (1.9 percent, compared with 4.5 percent in May), followed by services (1.6 percent, compared with 1.3 percent in May), food, alcohol & tobacco (1.4 percent, compared with 1.5 percent in May) and non-energy industrial goods (0.4 percent, compared with 0.3 percent in May)
     
    The euro extended losses against the euro on the result.
     
     
    However, the Stoxx 600 responded well to the data, rising toward 0.5 percent gains today.
     
     
    by luke.graham edited by Spriha Srivastava 6/30/2017 10:11:21 AM
  • Euro zone inflation for June dropped to 1.3 percent from 1.4 percent, according to flash estimates from Eurostat.
     
    Despite the drop, the overall inflation data surprised to the upside, according to Johannes Mayr, head of economic research at BayernLB in Munich.
     
    Surprisingly, core inflation edged higher, as service prices moved up. The drop in the headline figure was completely driven by lower oil and energy prices. The ECB will interpret this move as confirming the latest hawkish comments and signals.

    Still, we remain skeptical with regards to the inflation outlook, as core inflation has yet to clearly break out of the narrow band between 0.7 and 1.2 percent it is running at since spring 2013. But clearly, today's figures strengthen the case for a tapering announcement later this year.  
     
    The market gauge for long-term euro zone inflation expectations has risen to 1.6139 percent, its highest in almost seven weeks. According to Reuters.
  • 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.
  • The Greek Central Bank says it sees economic growth for the country at 1.6 percent this year, down from its previous forecast of 2.5 percent.
     
    It says delays in the conclusion of the second bailout review have hit growth, and says EU lenders need to specify debt relief measures. Delays to this may lead to a need for a new financial assistance agreement post-2018.
     
    A report from the central bank says Greece needs to speed up privatisations and implement growth friendly policies. 
  • 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.
     
     
  • French bank stocks are down today. This as the Bank of France announces that it sees increased market risks in its latest half-year report on the French financial system.
     
     
    The Bank of France says it is revising up risks relation to non-financial company debt and sees lower risks related to European interest rates.
     
    The Bank adds that regulatory risk for French banks is seen as moderate and should remains stable for the rest of the year.
  • ECB member Sabine Lautenschläger says she consider it imperative that monetary policy should return to normal as soon as can be justified.
     
    She says that with time, undesired risk become larger while desired effects wear off. She adds that it is important to prepare for different times.
     
    Meanwhile, ECB Banks Supervisor Daniele Nouy says the ECB is still developing its policy stance on bank trade booking models after Brexit.
    She says most banks are "not where they should be" on their Brexit plans.
  • Euro area inflation fell to 1.3 percent in June from 1.4 percent in May.
     
    Claus Vistesen, chief euro zone economist at Pantheon Macroeconomics, says the headline rate was constrained by a drop in energy inflation, due to fading base effects and a decline in oil prices.
     
    Food, alcohol and tobacco inflation fell marginally. This report is all about the core rate, however, which was boosted by a jump in services inflation and slightly higher inflation in non-energy goods.
     
    The rise in the services CPI likely was boosted by the different timing of the Pentecost holiday in Germany compared with last year. But leading indicators have been pointing to higher core inflation for a while, and we think it will rise further in the second half of the year. 
  • President Trump has this morning called on Republican Senators to repeal Obamacare legislation immediately, then work on replacing it at a later time.
     
    Senate majority leader Mitch McConnell opted this week to postpone the vote on the health care bill, as the bill faces backlash from both sides of the caucus.
  • 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.
  • President Trump has announced on Twitter that he is going to send Federal help to address "epidemic" crime levels in Chicago.
  • Earlier, data came out showing the U.K.'s current account deficit widened to £16.9 billion in the first quarter from £12.1 billion the previous quarter.
     
    Samuel Tombs, chief U.K. economist at Pantheon Macroeconomics, says the deficit remains a cause for concer.
     
    We would be more relaxed about the current account deficit if it was financing increased capital expenditure—and, therefore, the generation of future income—rather than the current state of affairs in which it is the product of a surge in consumer borrowing.
     
    We therefore share Mark Carney’s concern, expressed in his Mansion House speech earlier this month, that the current account deficit “…is not an imbalance that is, as yet, funding its eventual resolution.”
     
     Sterling remains down against the dollar today.
     
     
  • 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.
     
     
  • Greece's central bank on Friday cut its growth forecast for the year and issued a grim warning that lack of clarity from lenders over resolving the country's debt mountain held potential risks that may require further financial aid in future.

    Presenting its annual monetary policy report, the Bank of Greece said Greece's creditors needed to specify their commitment to medium-term debt relief measures to ensure the sustainability of debt over the medium to long term.

    Greece's public debt levels are presently at 180 percent of GDP. It has received three bailouts since 2010, and the latest runs out in mid-2018.
    Letting this pending matter drag on poses potentially serious risks and might even foreshadow the need for a new financial assistance agreement post-2018, something that neither Greece nor its partners would want, the Bank of Greece said.
  • 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.
  • The U.S. dollar index is trading higher following the release of U.S. personal income data. Here's how the dollar is performing against major world currencies. It remains down against the yen, but pared losses.
     
     
    Yields on longer-dated U.S. Treasuries also rose following the data.
     
     
  • A top Ukraine official says two Ukraine-U.S. defence agreements will be signed in the near future. These agreements will facilitate equipment sales and promote joint research and development, Reuters reports.
     
    "We are asking for help, but we are also ready to be America's partner and we have something to offer - namely, production capacity, outsourcing production, cheaper production of components for them and production of units and components of military equipment that the U.S. army may need," says Denys Gurak, deputy head of foreign economic activity at Ukroboronprom.
     
  • Blue Apron shares disappointed on their first trading day, yesterday.
     
    The shares began trading at their IPO price of $10 a share and rose as much as 9 percent in early trade, but closed the session back at $10.
     
    In premarket trade, the share are called higher by 2.6 percent.
     
     
  • 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.
  • Oil prices are higher today. The commodity is heading for its longest run of gains for six months, as slipping U.S. supply eases pressure on OPEC, according to Cailin Birch, commodities analyst at the Economist Intelligence Unit.
     
    The reported dip in US crude oil production in the week to June 23rd--when output fell by 100,000 barrels/day (b/d), to 9.25m b/d--was the largest week-to-week drop so far in 2017. It also brings current oil production down to the lowest level seen since mid-April 2017.
     
    U.S. crude oil stockpiles also declined slightly, albeit by less than 1%, in the month to June 23rd, after having climbed for much of the year thus far. This has been enough to encourage some guarded optimism among investors that the oil market is beginning to move back into balance. 
     
     Birch says their view is the oil market may record a very small deficit by the end of 2017, although other factors could cause another market oversupply.
     
     
  • The French foreign ministry says a watchdog report on chemical weapons use in Syria "unequivocally" proves that sarin gas was used in April.
     
  • U.S. personal income rose 0.4% in May vs 0.3% increase expected. Personal spending rose 0.1% in both nominal and real terms in May. Core PCE prices were +0.1% m/m in May
     
    Sal Guatieri, senior economist and director of economic research at BMO Capital Markets, says American consumers continued to slow spending in May.
     
    The Fed will take note of both, which could weigh toward a pause in the rate-hiking cycle until December. Still, above-potential GDP growth and tightening labour markets should keep policy makers on track to taper reinvestments in the fall.
     
    Jim O'Sullivan, chief U.S. economist at High Frequency Economics, also weighed in on the data.
     
    In short, inflation has slowed, while real spending has picked up -- likely due in part to the slowing in inflation.  As we discussed in our Daily Notes, we don't think the trend in inflation is moving down again, but the data help offset the hawkish implications for the Fed of the continued downtrend in the unemployment rate in recent months.  The pick-up in real consumption suggests a pick-up in GDP growth in Q2 as well.
  •  
    U.S. markets are now open, rebounding from yesterday's falls. Today is the last trading day of the week, month, quarter and half-year.
     
     
  • 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.
     
     
  • All 11 sectors of the S&P are higher at the start of Friday trade.
     
    Nike is also leading the S&P. Here are the winners and losers on the index so far.
     
  • 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.
  • Consumer sentiment hits 95.1 in June vs. 94.5 estimate

    CNBCEconomists expected the University of Michigan's Consumer Sentiment Index to hit 94.5 in June, according to Thomson 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.
  • French far-right leader Marine Le Pen has been placed under formal investigation over an alleged European parliament funding scandal.
     
    The allegations were passed to French investigators who have opened a case.

    The parliament suspects some €5m (£4m; $5.4m) went to assistants of Ms Le Pen's National Front (FN) who were not working for MEPs but were actually engaged in FN party work in France.

    The National Front has denied the allegations.
     
  • German lawmakers have passed a controversial law under which Facebook, Twitter, and other social media companies could face fines of up to €50 million ($57 million) for failing to remove hate speech. The Network Enforcement Act, commonly referred to as the "Facebook law," was passed by the Bundestag, Germany's parliamentary body, on Friday. It will go into effect in October.
     

    Germany passes controversial law to fine Facebook over hate speech

    CNBCSocial media companies could face fines of €50 million for failing to remove hate speech within 24 hours
  • Less than thirty minutes to Europe close and stocks are trading lower as major central banks suggested the era of cheap money may be coming to an end.
     
     
  •   

    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.
  • European stocks are closed for trading. The pan-European Stoxx 600 has closed slightly lower as investors eye central banks tightening monetary policy. 
     
     
  • Major European indexes have closed lower ending the month on a lower note:
     
     
  • And that's all from us here at World Markets Live. Join us on Monday for more. Till then have a nice evening and a wonderful weekend.
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