World Markets Live - May 25 - CNBC Live Events

CNBC Live Events

World Markets Live - May 25

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

    Miswin Mahesh, oil analyst at Enegry Aspects, has shared his thoughts following the OPEC announcement on extending oil production cuts.
    He says oil prices are always choppy when OPEC meetings take place. He thinks the fall seen today was triggered by imbalances in the market, as some were expecting deeper cuts to OPEC production - the 9-month extension was already expected and priced in.
    Some interesting data from earlier today.
    U.K. net long-term international migration to Britain was 248,000 in 2016, according to official data.
    That figure is down 84,000 from the previous year.
    Perhaps an indication that Brexit is already having an effect on immigration levels?
    Here's a small look into what it's like working in the world of journalism.
    CNBC's Steve Sedgwick shared this video of the "media scrum" a few minutes before entering the OPEC meeting this morning.
    After a busy hour with U.K. GDP data and the news from the OPEC meeting, let's look ahead at what economic data to expect coming out of the U.S. later today.
    At 08:30 a.m. ET we have the jobless claims for the week ending May 20th. The previous reading was 232,000 and consensus forecasts expect a reading of 237,000.
    At the same time we have the advanced economic indicators from April.
    Then at 11:00 a.m. ET we have the Kansas City Fed survey for May.
    On the earnings front, Medtronic, Best But and Dollar Tree are among the firms reporting before the bell. Costco, GameStop and Splunk will post results after the bell.
    CNBC's Steve Sedgwick managed to push through the media scrum to speak to the Saudi Arabian energy minister Khalid al-Falih this morning. 
    That follows his work yesterday speaking to oil ministers from Iran, Iraq and the UAE.
    U.K. GDP was revised down to 0.2 percent quarter over quarter in Q1. 
    Shilen Shah, bond strategist at Investec Wealth & Investment, says the reading indicated the U.K. economy is going through a soft patch.
    Both the production and service sectors were softer than expected. Despite sterling’s fall in value, net trade was also a drag on the GDP print, suggesting that both imports and exports seem not to be terribly sensitive to the FX market.
    Given the dependency of the economy on consumer spending, weak real earnings growth suggests a near-term re-acceleration is unlikely.
    Samuel Tombs, chief U.K. economist at Pantheon Macroeconomics, said the weakness stemmed from sterling's depreciation.
    The new expenditure breakdown of GDP shows that sterling’s depreciation has had an overall negative impact on the economy’s performance.
    Households’ real spending increased by just 0.3 percent quarter-on-quarter in Q1—the smallest increase since Q4 2014—as the import-led surge in inflation eroded spending power. Households also appear to have reduced their saving rate to a new record low to fund extra spending, because the 1.0 percent rise in spending in nominal terms exceeded the 0.6 percent rise in employees’ compensation.
    As a result, households have compromised their ability to fund further increases in spending over the coming quarters, when their real incomes will be coming under even more pressure from high inflation. 
    Sterling weakened further on the data, falling against the dollar and euro, and trimming back gains against the yen.
    Manchester Police are responding to a call at a college in Trafford. Roads around the area are closed, and the U.K. army is on the way.
    This comes a few days after a suicide bombing in Manchester.
    Earlier, it was reported that British police will stop sharing information concerning the bombing with the U.S. due to concerns about leaks, that's according to Reuters citing a U.K. counter-terrorism source.
    Following the terrorist incident after her concert earlier in the week, pop start Ariana Grande has cancelled her future shows in Europe.
    The singer was scheduled to perform at the London O2 arena tonight and Friday night, but these are now cancelled. The singer's representatives shared this official statement.
    Due to the tragic events in Manchester the Dangerous Woman tour with Ariana Grande has been suspended until we can further assess the situation and pay our proper respects to those lost. 
    The London O2 shows this week have been cancelled as well as all shows through June 5 in Switzerland. We ask at this time that we all continue to support the city of Manchester and all those families affected by this cowardice and senseless act of violence.
    Our way of life has once again been threatened but we will overcome this together. Thank you.
    Manchester Police say a bomb disposal team has arrived at Trafford College.
    President Trump is speaking with EU leaders today in Brussels. 
    European Council President Donald Tusk has spoken to reporters about the progress of talks.
    Tusk says after the meeting that the two sides agreed on much, but climate and trade issues remain open. He is not sure they share a common position on Russia, but seems to have the same line regarding the Ukraine, according to Reuters.
    Tusk added that the fundamental western values of freedom and human rights unit the EU and U.S. 
    Trump with Tusk.
    U.K. GDP growth was revised down to 0.2 percent in the first quarter. Emmanuel Lumineau, CEO at BrickVest, says the U.K. economy has seen worse than expected growth in Q1.
    The U.K.’s recent economic strength including post Brexit may be beginning to wobble as consumers begin to feel the impact of higher inflation. For the real estate industry, higher inflation means higher construction costs and should lead to an increase in property prices.
    However in recent months the demand for real estate has softened and it is unlikely that developers will immediately pass on the higher inflationary costs to the end customer.
     The FTSE 100 took a tumble on the news of the GDP data, but has pared losses and is steady in positive territory.
    Oil prices remain lower on reports that OPEC has agreed to extend oil production cuts for a further nine months. That's according to Reuters citing an OPEC delegate.
    For more on this story, click here.
    In what is starting to feel like old news, bitcoin has hit a fresh all-time high.
    The digital currency has hit a new record above $2,700. That's after crossing $2.400, $2,500 and $2,600 in less than 24 hours. 
    Oil prices are falling today on reports that OPEC will extend production cuts for several months (which was expected and priced in by markets), but will keep cuts at the same level (which was not).
    Spencer Welch, director of oil markets at IHS Energy, shared his analysis on why the price is falling.
    Despite firm suggestion that OPEC will extend cuts by at least 6 months, maybe 9, oil price has fallen today by around $0.7/bbl, why?
    Because the OPEC cut extension is already priced into the market, there is only downside risk that the deal won’t happen, plus there is still concern about U.S. oil production growth, high global oil inventories, as well as U.S. plan to sell 50% of their strategic stocks (350 million barrels of oil).
    U.K. Prime Minister Theresa May says she will make it clear to President Trump that U.K. information must remain secure, and raise concerns about U.S. information leaks.
    This comes after reports that British police have stopped sharing information with the U.S. after information and pictures were leaked to the press.
    May also says that the threat level in the U.K. will remain at critical. The prime minister was speaking after a meeting with top U.K. officials to discuss the Manchester attack.
    Trump told EU leaders he is concerned that U.S. jobs may be lost due to Brexit, according to an EU source cited by Reuters.
    The U.S. president is in Brussels speaking with EU leaders, ahead of a NATO summit.
    Yesterday, the Federal Reserve released it's latest monetary committee minutes, indicating a likely June rate hike and providing clues for when the central bank will start to trim its balance sheet.
    Peter Chatwell, head of European rates strategy at Mizuho, said the minutes point to a balance sheet run-off in the near term.
    Gradually phasing out the reinvestments means that the magnitude of the 2017 runoff is uncertain, but 2017’s redemptions (~$100bn in USTs for the remainder of the year) are small fry in comparison to 2018 (~$370bn in USTs) and 2019 (~$330bn in USTs).
    The full impact of 2018 and 2019 should be felt, as we expect the phasing out to be completed by then. 
    U.S Treasuries rose in price today. Yields on the benchmark 10-year note fell to 2.2589 percent as investors looked ahead to speeches from Fed Governor Lael Brainard and St. Louis Fed President James Bullard due today.
    As we hit the mid-day point, let's check in on European markets. The Stoxx 600 remains positive, up by just 0.08 percent.
    The individual European bourses are eking out gains as well.
    Meanwhile, U.S. stocks are expected to extend a winning streak for another session. The Dow is called 70 points higher according to future values.

    OPEC meeting set to dominate on Wall Street; earnings eyed

    CNBCU.S. stock index futures pointed to a higher open on Thursday as oil producing nations meet to extend a deal concerning production.
    British Police say carrying out associated searches after earlier arrests, searches have revealed items to be very important to the investigation. 
    British Police have also said that the leak of intelligence in the U.S. media has caused additional distress amongst families of victims. That's according to Reuters.
    Aberdeen Asset Management Chief Executive Martin Gilbert said his company will have to move some jobs to Europe from Britain if the European Union insists that the clearing of euro denominated trade should be based inside the bloc.

    Gilbert declined to say how many jobs would have to move, but told a financial conference on Thursday it would probably be a "handful" of roles. That's according to Reuters.
    The Queen has arrived at Royal Manchester Children's Hospital to meet young victims of the terror attack:
    UK Interior Minister "confident" leaks about Manchaster attack to the U.S. media will now end. That's according to Reuters citing a BBC reporter on Twitter.
    British Prime Minister Theresa May said on Thursday she would tell U.S. President Donald Trump that intelligence shared between their two countries had to remain secure after leaks to U.S. media about the Manchester attack.

    British police stopped sharing information about the suicide bombing with the United States, a British counter-terrorism source told Reuters earlier, after police chiefs said the leaks to media risked hindering their investigation.

    Police are hunting for a possible bomb-maker after the 22-year-old attacker, British-born Salman Abedi, detonated a sophisticated device at a concert venue packed with children on Monday night, killing 22 people.

    May said she would talk to Trump at a NATO summit later on Thursday about the leaks, which included the publication of photographs of the bomb site by the New York Times.

    I will make clear to President Trump that intelligence that is shared between our law enforcement agencies must remain secure, she said in a televised statement.
    Oil prices fell as OPEC ministers met to decide how long to extend oil production cuts in an attempt to drain a global glut that has depressed markets for almost three years.

    One OPEC delegate at the meeting in Vienna said the group of 14 oil producers had agreed to extend cuts in production by nine months to March 2018.
    Check out which companies are making headlines before the bell:
    Best Buy – The electronics retailer reported a blowout quarter, swamping estimates by 20 cents with adjusted quarterly profit of 60 cents per share.
    Sears Holdings – The retailer posted a quarterly loss of $2.15 per share, smaller than the $3.05 per share loss that analysts were expecting. Revenue beat forecasts, and the same-store sales drop of 11.9 percent was slightly smaller than the 12 percent consensus forecast.
    Live Nation Entertainment – Guggenheim began coverage on the concert promoter with a "buy" rating, saying it was poised to capitalize on a robust global concerts market.
    HP - The PC and printer maker reported adjusted quarterly profit of 40 cents per share, 1 cent above estimates. Revenue for the Hewlett-Packard spinoff also came in above forecasts as the personal computer market stabilized and the printer business improved.
    Harley-Davidson – Harley announced plans to build a plant in Thailand to serve the Southeast Asian market. The move would help the company avoid Thailand tariffs of up to 60 percent imposed on imported motorcycles.
    Philip Morris – Piper Jaffray rates the tobacco company "overweight" in new coverage, noting strong underlying earnings growth in its cigarette business, among other factors.
    Click here for the full list of companies.
    British investigators now think suicide bomber Abedi may have made the bomb himself, that's according to Reuters citing a source with knowledge of the investigation. Investigators still searching for accomplices and network of the Manchester suicide bomber. 
    Chris Saint, Senior Analyst, HL Currency Service analyses the move in the pound:
    The pound inched lower after data today showed Britain’s economy grew more slowly than initially thought in the first three months of the year. The second estimate of UK first-quarter GDP was unexpectedly revised to 0.2%, from 0.3% previously. The Office for National Statistics pinpointed ‘consumer facing industries such as retail and accommodation’ as driving the slowdown, corroborating the view that rising inflation is weighing on household spending. A weak trade performance will also be a big cause for concern, denting hopes that UK exporters can make the most of the tailwind from sterling’s post-referendum decline which makes their products cheaper in overseas markets. By noon sterling trades at $1.2957 against the US dollar and €1.1548 versus the euro, only slightly off the week’s lows of $1.2925 and €1.1523.
    OPEC meeting on output policy enters fifth hour, Ministers break for lunch, according to Reuters citing OPEC delegates.
    U.S. President Donald Trump congratulated French leader Emmanuel Macron on Thursday for doing a "great job" to win this month's election while Macron said the two men would be able to change many things together.

    The presidents, meeting for the first time since Macron was elected on May 7 after a turbulent campaign, shook hands firmly before lunch in Brussels, with Macron gripping Trump's hand so tight that it turned white.

    Trump told Macron it was an honour to be with him, saying he had run "an incredible campaign and had a tremendous victory".

    All over the world they are talking about it and we have a lot to discuss including terrorism and other things. Congratulations, great job, he said before the lunch at the U.S. ambassador's residence.
    U.S. stocks are now open for trading with all three indexes opening in positive territory as OPEC meeting continues to dominate the Wall Street:

    S&P and Nasdaq hit all-time highs as investors continue to cheer Fed minutes

    CNBCU.S. stocks opened higher on Thursday as Wall Street remained positive about the Federal Reserve's plan to trim its balance sheet.
    The OPEC spokesperson has told Reuters the OPEC meeting has finished. We will update you as soon as we have more information. Oil prices meanwhile continue to edge lower:
    Here's a look at the three major Wall Street indexes that are trading higher this morning. Nasdaq and S&P 500 have hit record highs:
    EU's Juncker says French President Macron will be ally of commission in Europe's future. Meanwhile, Macron says Europe must protect people as France is reforming labour market. That's according to Reuters.
    OPEC, non-OPEC discussed option of extending cuts into June 2018 if market deteriorates, that's according to Dow Jones citing sources. 
    Dow Jones is reporting deteriorating conditions would include high inventory levels and low prices, option would be triggered upon agreement in March 2018.
     Gold held steady on Thursday as the dollar weakened after minutes from a U.S. Federal Reserve meeting suggested that the central bank could take a more cautious approach to interest rate increases.

    Fed policymakers had agreed at the meeting that they should hold off from raising rates until it is clear that a recent U.S. economic slowdown is only temporary, though most said an increase is coming soon. 
    Oil trades in red as Saudi, Russian energy ministers due to start news conference at OPEC:
    Saudi Energy Minister says oil market rebelancing partially achieved. Oil is paring losses as Saudi energy minister speaks. 
    he says determined to deepen framework for cooperation between OPEC and non-OPEC.
    Saudi energy minister says more time needed to balance the market. The drawdown of inventories has begun and will accelerate. That's according to Dow Jones.
    Oil prices have pared losses a bit but are still trading lower as Saudi Energy minister speaks:
    Kuwait Oil Minister says OPEC approves nine-month extension, same ceiling. That's according to Reuters.
     U.S. President Trump vowed on Thursday to bring anyone caught leaking U.S. intelligence to justice after British police stopped sharing information about the Manchester suicide bombing with the United States.

    In a statement released after Trump arrived at the NATO military alliance, the president said he would seek an official review to stop leaks that he said posed a serious security threat.

    The alleged leaks coming out of government agencies are deeply troubling, Trump said in the statement. I am asking the Department of Justice and other relevant agencies to launch a complete review of this matter, and if appropriate, the culprit should be prosecuted to the fullest extent of the law.

    He said the relationship between the United States and Britain was the most cherished of all U.S. ties.
    U.S. President Trump, at NATO, says NATO has promoted safety and peace across the world, calls Manchester attack "savage" and asks NATO leaders for a minute of silence. 
    Trump says militants are losers, must be driven out of societies, he says he has renewed hope that nations can unite to defeat terrorism.
    Trump also says NATO must focus on immigration, terrorism and Russia threats and NATO members must contribute their fair share and meet their financial obligations. Trump says 23 NATO nations owe "massive amounts of money" to U.S. taxpayers.
    Thirty minutes to Europe close and stocks are trading lower across the board except for the FTSE100 that has edged a bit higher:
    OPEC, Non-OPEC oil output cuts remains about 1.8 million barrels per day, next meeting to be held on November 30. That's according to Reuters citing delegates.
    Iran's oil minister says confirms OPEC, Non-OPEC rollover of nine months. That's according to Reuters.
    European stocks are now closed for trading with the pan-European Stoxx 600 closing slightly lower as OPEC meeting continues to drive markets:
    Meanwhile, all major stock indexes have gone home in red except for the FTSE 100 that has managed to edge up slightly:
    And that's all from us here at World Markets Live. Join us again from tomorrow at 0600 London time for post-OPEC analysis and more breaking news. Till then, take care and see you soon!
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