World Markets Live - September 1 - CNBC Live Events
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World Markets Live - September 1

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

  • Asian equities followed Wall Street's gains overnight and edged higher on Friday, according to Reuters.
     
    Meanwhile, Chinese shares gained after the private Caixin manufacturing purchasing managers index showed the country's August manufacturing activity expanded at the fastest pace in six months.
     
    Here's a snapshot of Asian markets at 05:56 a.m. BST.
     
     
  • These are the top news stories this morning:
     
    • President Trump's team fights to cut taxes. Treasury Secretary Steven Mnuchin talks exclusively to CNBC on how they're aiming for a 15 percent corporate tax, despite opposition. He adds that the debt ceiling issue won't hold America back.
    • The EU's top negotiator says progress is slow on Brexit talks. His British counterpart claims the UK is showing flexibility. We're live from Brussels with the latest.
    • In Japan, British Prime Minister Theresa May cuts a deal with Japan for trade ties after Brexit.
    • Little sign of the inflation people have been waiting for in U.S., as investors await key employment data.
     
    Also, here're the opening calls for European markets.
     
     
  • Japan's domestic auto sales excluding mini-cars rises 4.7 percent year on year in August.
     
    Mini-car sales rose 7.2 percent over the same period.
  • Here's how the U.S. markets finished the last session.

     
  • Investors will receive fresh insight into how the American economy is performing when the U.S. Bureau of Labour Statistics releases its latest batch of non-farm payroll data later today. The consensus estimate from economists polled by Dow Jones is for the US economy to have added 179,000 jobs in the month of August, down from 209-thousand in July.
     
    Ian Shepherdson, chief economist at Pantheon Macroeconomics, says he expects a reading of 200,000 for the August nonfarm payrolls.
     
    There’s quite a history of the August payroll figure coming in lower than expected and then being revised up quite a lot later. I think that’s probably biased some of the forecasts to the downside today.
     
    In the last couple of years, those seasonal effects or sampling error effects, not quite sure which it is, have been much smaller so I wonder if the effect of the crash in 2008, which is what I think distorted the data, has finally dropped out of the seasonals.
     
     
     
     
  • Sterling has slipped against the dollar and is flat against the euro, and is on track to record its worst month since October, as uncertainty over Brexit weighs on the currency. 
     
     
    EU and UK teams agreed that "no decisive progress" has been made as the latest round of Brexit talks concluded in Brussels. The EU's chief Brexit negotiator, Michel Barnier, said Westminster is demanding the "impossible". While his British counterpart, David Davis, countered that the bloc needs to be more flexible in negotiations.
     
     
  • In this week's Trader Poll, we asked you which European development you think will move markets most in the coming days.
     
    The results are in and Brexit came in first with 41 percent of votes, followed by the German elections with 37 percent. 
     
    Italian political instability was third at 17 percent, while only 5 percent of you think that the French labour reform debate will shake up the markets.
     

    Tell us what you think: Which European development will move markets most?

    In this week's Trader poll, we want to know which euro zone development will cause the greatest reaction in markets.
  • British Prime Minister Theresa May concludes her 3-day visit to Japan today, having secured a commitment from Shinzo Abe's government to work quickly to establish a trade deal when the UK exits the EU.
     
     
  • The euro retreated from a 2 and half year high, after Reuters reported that a growing number of ECB policymakers were worried that the strengthening currency could slow down the phasing out of asset purchases.
     
    The Euro rose above $1.20 earlier this week amid heightened tensions with North Korea, prompting talk that the currency was becoming a safe-haven for investors. 
     
     
  • Is the rally in the euro justified? Speaking at the Ambrosetti Forum in Cernobbio, former ECB president Jean-Claude Trichet says the economy in Europe is picking up and there are positives.
     
    Things are going well in all dimensions. That being said, I think that the U.S. difficulty and particularly the hesitiation regarding investment and taxation and the difficulty of the present administration are playing an important role. The problem is more than the dollar is weak vis-a-vis all currencies, it’s that the euro is very strong. Clearly there is a dollar problem.
     
     
  • The European Central Bank is expected to announce a cutback of QE asset purchases in October, according to 46 out of 66 economists polled by Reuters. 15 said September, while 5 said December.
     
    The ECB is likely to reduce the amount of monthly asset purchases beyond December, according to all economists polled. The central bank is likely to end monthly purchases by the end of 2018, according to 58 out of 63 economists polled.
  • The death toll from Tropical Storm Harvey, which has devastated large areas of Texas and Louisiana, has risen to 44. Severe flooding has forced more than a million people to flee their homes. The Texan city of Beaumont had its water supply cut-off, while rising rivers forced one hospital to evacuate staff and patients.
     
    Near Houston, meanwhile, a series of explosions shook a chemicals plant as flood waters engulfed the facility. Moody's Analytics estimates the economic cost of Harvey to be one of the highest in American history, at around $51 to 75 billion.
     
     
  • The IFA trade show is under way in Berlin, where some of the biggest players in consumer electronics are showcasing their latest tech. Product launches have come from companies like LG, Sony and Samsung - which has released its next generation smart watch.  
     
    James Park, CEO of Fitbit, discusses the smart watch market, which he says is now worth $10 billion, and discusses why he is unconcerned about competition in the wearables space.
     
    We’re the number one wearable brand in the world. We ask users what comes to mind when thinking about fitness and activity tracking and two thirds of consumers say Fitbit, more than Apple, more than Garmin, more than Samsung.
     
    We have an incredible brand, we have a large community of users, over 50 million registered users who are cross platform compatible, and so all these assets position us very well in the category.
     
     
  • Finnish Q2 GDP rises 3 percent year on year and 0.4 percent quarter over quarter, according to Statistics Finland.
  • These are the main headlines for the hour:
     
    • President Trump's team fights to cut taxes. Treasury Secretary Steven Mnuchin talks exclusively to CNBC, on just how low they want corporate rates to go.
     
    • The EU's top negotiator says progress is slow on Brexit talks. His British counterpart claims the UK is showing flexibility. We're live from Brussels with the latest.
     
    • In Tokyo, British Prime Minister Theresa May secures a deal with Japan for trade ties after Brexit.
     
    • Former ECB president, Jean-Claude Trichet, warns against complacency in the resurgent euro zone, telling CNBC governments must enact more structural reforms.
  • There is no time for complacency with the economy and with structural reforms in Europe, says former ECB president Jean-Claude Trichet, speaking at the Ambrosetti Forum in Cernobbio.
     
    He warned that the euro zone is still failing to achieve the ECB's price stability target for inflation.
     
    We are still lagging behind the 2 percent (inflation target), which is the goal in Europe. You can see that we’re picking up a little bit, with the last figures of 1.5 percent, but it is with the help of gasoline and commodities.
     
    It remains well below what we should do and I hope we will do because it is the definition of price stability.
     
    He called on the private and public sectors to prepare for monetary policy normalization.
     
    This accommodating monetary policy will not last forever, and all governments and all partners must prepare for when we get out of it in order to not accumulate the negatives with the exit.
     
     
  • Investors will receive fresh insight into how the American economy is performing when the U.S. Bureau of Labour Statistics releases its latest batch of non-farm payroll data later today.
     
    The consensus estimate from economists polled by Dow Jones is for the U.S. economy to have added 179,000 jobs in the month of August, down from 209,000 in July.
  • Adair Turner, chairman for the Institute for New Economic Thinking, says current economic thinking is flawed.
     
    What we’ve found is it’s very difficult to understand a lot of what is going on in the world economy at the moment with our classic ways of thinking about.
     
    Let me give you an example with the labour market. We now have unemployment getting lower and lower in the U.S., in the U.K., in particular in Japan, and we have almost no signs whatsoever of inflation of wages.  That’s completely against the models we used to have.
     
    He says we need to understand why wages are stuck and he says it’s probably to do with technology and automation.
     
     
  • The economic cost of Tropical Storm Harvey is mounting. Analysis by Corelogic estimates that about 70 percent of flood damage related to Harvey is uninsured.
  • Swedish manufacturing PMI drops to 54.7 in August from 60.4 in July, according to SILF and Swedbank.
  • Liam Fox has said the UK will not be "blackmailed" by the EU over its Brexit bill in order to start trade talks. The British International Trade Secretary made the comments in Japan, where he is traveling with Prime Minister May, following a tense and inconclusive end to the third round of Brexit talks in Brussels.
     
     
    This comes as poll data released today shows two thirds of Germans believe Britain's exit from the EU will have negative consequences for the EU, while 20 percent see long term benefits.
  • The IFA trade show has kicked off in Berlin, where some of the biggest players in consumer electronics are showcasing their latest tech. Product launches have come from companies like LG, Sony and Samsung - who has released its next generation smart watch.  
     
    Yannick Fierling, Europe CEO of HAIER, discusses “smart homes” with CNBC and why the promise of our homes being filled with connected devices has not yet been fulfilled.
     
    The consumer pool right now has not been very high in Europe for smart appliances and that’s probably why it has not been progressing. However, HAIER is perfectly ready to offer this smart home, there is no doubt that it is coming. China is the biggest market place for smart homes today.
     
     
  • European markets will open shortly. Here's the expected moves for the major European bourses according to future values.
     
     
  • European markets are now open for Friday trade. The Stoxx 600 finished yesterday's session up 0.77 percent. 
     
    This morning it has opened to the upside for the last trading day of the week.
     
     
  • All sectors of the Stoxx 600 are currently in positive territory. Basic resources is the best performer so far.
     
     
     
  • All of the major European bourses are in the green this morning, following Wall Street and Asia higher.
     
     
     
  • These are the stocks making headlines this morning.
     
    A California judge has rejected a lawsuit from the US state of Wyoming against Volkswagen. The state had sued the German automaker for more than a billion dollars over environmental damages related to VW's excess diesel emissions scandal. The ruling could prevent dozens of other states from pursuing claims against the world's largest carmaker by sales.

    Truck maker Volvo has set new financial targets, saying it is now aiming for an operating margin of above 10 percent. Years of cost cuts and efficiency gains have helped the Sweden-based automaker to drive increased profitability. It is at the top of the Stoxx 600.
     
     
    French conglomerate Vivendi reiterated its full-year outlook after posting better then expected core earnings in the second quarter. The firm cited a boost in sales in its main unit Universal Music Group thanks in part to the record-breaking single "Despacito." It is near the top of the Stoxx 600.
     
    French chemical company Arkema says there could be more fires at its flooded Texas plant. This after two explosions prompted the evacuation of the surrounding area and intoxicated dozens of agents. Officials at the US Chemical Safety Board have launched an investigation into the explosions, while an internal company risk-management plan estimates one million people in the area could be at risk of airborne danger.
     
  • Spain's August manufacturing employment PMI drops to 53.3 in August from 56.5 in July. The manufacturing purchasing managers index falls to 52.4 from 54.0 in July. This is the lower reading since September 2016.
     
     
  • South Korean and Japanese fighter jets conducted joint exercises with US troops near the Korean peninsula, after tensions hit a new high following North Korea's firing of a missile over Japan. 
  • Wells Fargo says that 1 million more bank accounts have been opened without clients authorization. This would be a 70 percent increase over the bank's initial estimate. Almost one year ago, Wells Fargo was at the centre of a public scandal after revealing that some employees had opened millions of bank accounts that customers did not authorize. 
  • HSBC's new chairman Mark Tucker is joining the bank's board today. He will officially step into his new role on the 1st of October.
     
     
  • Swiss retail sales fell 0.7 percent in July compared to a revised 1.7 percent in the previous month.
  • Ritu Vohora, investment director at M&G Investments, says markets had a strong first quarter which set expectations very high.
     
    Clearly as we went into Q2 we had the strength of the euro which has impacted earnings and we’ve seen a lot of analysts downgrade their revisions.
     
    When you look across more cyclical sectors and defensive sectors, you’ve seen a clear difference in terms of earnings delivery where some of the consumer staples and bond proxies have failed to deliver, whereas some of the cyclical components and areas like financials have delivered strongly.
     
     
  • Here are the post-market open top headlines:
     
    President Trump's team fights to cut taxes. Treasury Secretary Steven Mnuchin talks exclusively to CNBC, on just how low they want corporate rates to go.
     
    The EU's top negotiator says progress is slow on Brexit talks. His British counterpart claims the UK is showing flexibility. We're live from Brussels with the latest.
     
    In Tokyo, British prime minister Theresa May secures a deal with Japan for trade ties after Brexit.
     
    Music to its ears! Vivendi shares are on course for their best day in 4 months as impressive sales of smash hit "Despacito" boosts revenues for subsidiary UMG.
     
     
  • Sweden's second quarter current account surplus comes to 39.5 billion krona, according to the country's stats office.
     
    Meanwhile, the Swiss purchasing managers index comes in at 61.2 points for August, beating the Reuters poll forecast of 60.5 points.
     
    Also, the Czech August manufacturers PMI falls to 54.9 from 55.3 in July, according to Markit Economics. This was below forecasts.
  • Italian August manufacturing PMI rises to 56.3 in August from 55.1 in July and beating the estimate to 55.2. This is the highest reading since February 2011. The PMI orders index also rose to 58.2 in August from 56.4 in July.
  • Ralph Jainz, fund manager at Centricus Wittenberg, says Europe still looks good.
     
    Europe benefits both from internal expansion, accelerated credit growth and a strong global economy, but like what we said with Japan, they are really export driven areas. While global growth is good and we’re at a multi-year high, they will show good numbers. The question is will the global growth still be the same in Q1 and Q2 2018?
     
     
  • French August manufacturing PMI comes in at 55.8, matching forecasts. 
     
    Meanwhile, German August manufacturing PMI rises to 59.3 from 58.1 in July, although this just misses forecasts of 59.4.
  • The euro is coming off its recent high and falling against the dollar and sterling. Some positive PMI data from euro zone economies have perked the euro up but it remains in negative territory.
     
     
  • These are the top news for the hour:
     
    President Trump's team fights to cut taxes. Treasury Secretary Steven Mnuchin talks exclusively to CNBC, on just how low they want corporate rates to go.
     
    The EU's top negotiator says progress is slow on Brexit talks. His British counterpart claims the UK is showing flexibility. We're live from Brussels with the latest.
     
    In Tokyo, British prime minister Theresa May secures a deal with Japan for trade ties after Brexit.
     
    Music to Vivendi's ears! Shares in the French media group are on course for their best day in 4 months as impressive sales of smash hit "Despacito" boost revenues for subsidiary UMG.
  • Norway's August seasonally adjusted unemployed and on job training totals 91,830.
  • Euro zone August PMI rises to 57.4 from 56.6 in August. This matched forecasts.
     
    The result has failed to perk up the euro against the dollar.
     
     
  • European bond yields are lower today, indicating demand for government debt.
     
     
  • Pirelli says it expects revenue to grow 9 percent on average per year from 2016 to 2020. The company expects adjusted EBIT margin to rise to about 18.5 to 19.5 percent by the end of 2020 from 17 percent in 2016.
     
    Pirelli says first half net profit was 67.6 million euro. It expects debt to fall with net financial position and adjusted EBITDA ratio of less than 2 by 2020.
     
    The company plans to invest around 7 percent of annual revenue between 2017 and 2020.
  • British Prime Minister Theresa May concludes her 3-day visit to Japan today, having secured a commitment from Shinzo Abe's government to work quickly to establish a trade deal when the UK exits the EU.
     
     
    Meantime, China's Caixin manufacturing PMI survey unexpectedly beat expectations in August, as activity grew at its fastest pace in 6 months. Analysts had predicted a slight dip. The strong data comes on the back of a boost in export orders, which hit a 7 year high. Meanwhile, total new business soared to its highest level in more than 3 years.
     
    Also, investors will receive fresh insight into how the American economy is performing when the U.S. Bureau of Labour Statistics releases its latest batch of non-farm payroll data later today. The consensus estimate from economists polled by Dow Jones is for the US economy to have added 179-thousand jobs in the month of August, down from 209-thousand in July.
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