World Markets Live - March 10 - CNBC Live Events
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CNBC Live Events

World Markets Live - March 10

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

  • Nonfarm payrolls increased by 235,000 in February and the unemployment rate was 4.7 percent in the first full month of President Donald Trump's term, the Bureau of Labor Statistics reported Friday.

    Average hourly earnings increased by a healthy 2.8 percent on an annualized basis.

    Construction jobs led the way, growing by 58,000, while manufacturing also posted strong gains with 28,000 new jobs.

    Economists surveyed by Reuters had expected the economy to add 190,000 jobs and the unemployment rate to tick down to 4.7 percent. That contrasts with to the upwardly revised January numbers of 238,000 new positions and an unemployment rate of 4.8 percent.
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  • Our opening calls for Europe as of around 3.am. London time are as follows:

    A positive Friday has been predicted 

    The blog will kick off proper at 06:00 a.m. London time.

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  • Our top stories as we get underway:

    • WTI falls below 50 dollars weighing on US stocks, which are poised to have the biggest weekly decline of the year. But the Nikkei rallies to a one-week high on the back of yen weakness. 
    • Wall street eyes strong non-farm payrolls, following the biggest surge in private sector jobs in six years, also fuelling the likelihood of a Fed hike next week.
    • South Korean President Park Guen-hye is thrown out of office, becoming the country's first democratically elected leader to be removed and sparking violent protests on the streets of Seoul. 
    • British Prime Minister Theresa May confirms she will pull the trigger on Brexit by the end of this month, amid reports it could happen as early as Tuesday.

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  • U.S. equities closed flat yesterday as investors got ready for key employment data.

    The Dow Jones industrial average rose 3 points, with Johnson & Johnson contributing the most gains. The S&P 500 closed above breakeven, with health care leading advancers decliners. The Nasdaq composite eked out a gain.

    Today’s session will be all about the jobs report and investors gearing up for a probable rate hike next week. 

    There are now some worries in the market that, if the data continue to come in hot, the Fed could raise rates more than 3 times.


    U.S. Treasurys extended their sell-off in late trade, with the benchmark 10-year note yield climbing above 2.6 percent.



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  • The US dollar has hit a two-month high against the Japanese yen which has, in turn, pushed the Nikkei higher.

    The Nikkei has closed higher by around 1.5 percent.


    Other markets are still open for trade and in positive territory.

     


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  • The dollar racing up to a 2-month high against the yen since the January 19. This, according to Sri, is all related to expectations of a U.S. Federal Reserve rate hike next week.


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  • At least two South Korean protesters died on Friday at a street rally staged by ousted President Park Geun-hye's supporters.

    "We confirm that two protesters against upholding impeachment have died," said Lim Jae Beom, an officer at the public relations office of Seoul Metropolitan Police Agenc.

    South Korea's constitutional court has decided to oust President Park, meaning she will be the first leader to be removed from office by impeachment in the country's history.

    The national police agency had raised their alert level to the highest ahead of Friday's ruling amid elevated public anger towards the embattled head of state. Since news of the scandal broke in October, mass street demonstrations have rocked Asia's fourth-largest economy.

    Chery Kang reporting from ongoing protests in South Korea 


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  • The Polish Prime Minister says she will block the latest EU summit communiqué in protest over the re-election of Donald Tusk as European Council President. 

    The Polish government had lobbied vehemently against his reappointment, claiming he'd violated his mandate by interfering in domestic politics. 

    Tusk was re-appointed with 27 of the 28 votes.

    Donald Tusk, EUCO President 

    The European council gathers today with economy, security, migration and the situation in the Western Balkans.

    The Western Balkans, formerly Yugoslavia, has become a contentious area of struggle between Europe, Russia and Turkey.
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  • Oil prices have edged up off the three-month lows hit yesterday as WTI fell below $50 per barrel for the first since mid-December.

    Fears over a supply glut look likely to keep a lid on any steep gains.

    "Steep price falls in the last two days amid building U.S. inventories show that the market remains concerned about the supply-demand balance," NAB Group Economics said in a research note.



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  • Marc Kofler, Research Analyst at Jefferies is on set with the London team now.

    Steve kicks off by asking him why there has been a sudden shift down in the price of oil. Kofler says compliance on supply caps is looking shakier than before.

    Commentary from Saudi Arabia spooked markets. The Kingdom has intimated it is not prepared to take on the burden of production cuts.
     
     
     
     
    Kofler said that another week of inventory builds in the U.S. has also triggered a wave of selling.

    Marc Kofler, Research Analyst at Jefferies (L) 

    Kofler said U.S. shale oil is not likely to curb its own production soon as the economics currently make a lot of sense for some American drilling sites.
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  • by david.reid edited by Spriha Srivastava 3/10/2017 6:54:39 AM
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  • A reminder of our top stories:

    • WTI falls below 50 dollars weighing on US stocks, which are poised to have the biggest weekly decline of the year. But the Nikkei rallies to a one-week high on the back of yen weakness. 
    • Wall street eyes strong non-farm payrolls, following the biggest surge in private sector jobs in six years, also fuelling the likelihood of a Fed hike next week.
    • South Korean President Park Guen-hye is thrown out of office, becoming the country's first democratically elected leader to be removed and sparking violent protests on the streets of Seoul. 
    • UBS lowers its 2016 profit on the back of a legal settlement, also cutting the pay package for CEO Sergio Ermotti.
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  • The German January trade figure has come in.

    The German trade surplus figure for January has come in at 18.5 billion euros, just edging past a forecast of 18.3 billion euros.

    The current account surplus came in at 12.8 billion euros versus a forecast 15.5 billion euros.

    Germany has the largest current account surplus in the world.
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  • European futures are alive and kicking. We expects a positive open for the main indices when they go live in just more than 40 minutes time.



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  • Details of the BT agreement have been published on the company's media page.


    The questions over BT's oversight of its engineering arm, Openreach, which competitors use (and complain about) has been a 2-year battle.

    2 years in which BT shares have struggled.


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  • French industrial output for January has come in at -0.3 percent month-on-month versus a forecast gain 0.5 percent.

    Manufacturing output for the same month came in at -1.0 percent month-on-month.
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  • Geoff has taken to Twitter to highlight a key quote from our guest host.

    Alan Higgins, Chief Investment Officer, Coutts 

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  • M&A figures show activity has dropped off with almost 600 fewer deals taking place in February this year than in the same month last year.

    Lucinda Guthrie, Deputy Global Editor at Dealreporter says Trump policies could allow a lighter touch regulation and that could help bigger deals get underway.

    Guthrie said the deals at the moment that are happening are more likely to allow business to extract value in sectors struggling to generate organic growth.

    Guthrie says private equity consortia are struggling to compete with strategic type deals in the M&A space.

    Lucinda Guthrie, Deputy Global Editor at Dealreporter 

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  • Openreach is to be legally separated out of BT.

    Openreach is a subsidiary of telecommunications company BT Group that owns the pipes and telephone cables that connect nearly all businesses and homes in the United Kingdom.

    Competitors who compete with BT, but rely on access to Openreach’s network, say the company is not making the requisite investment.

    The new Openreach division is to have its own brand with no BT logo. BT says 32,000 employees will transfer to the new Openreach.

    © 2014 Bloomberg Finance LP

    Our guest host Alan Higgins, Chief Investment Officer at Coutts says this will be interpreted as good news for BT and shares should rise today.

    Geoff  calls it "a fudge" and says ultimately the success or failure of Openreach will still appear on BT's bottom line profit or loss statement.

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  • European markets are now open. The pan-European Stoxx 600 index is moving to the upside.
     
     
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  • Here's how the European sectors are doing today. Just two sectors are in negative territory so far.
     
     
     
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  • The European major bourses are all moving modestly high today.
     
     
     
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  • BT has reached an agreement with Ofcom to separate its broadband unit Openreach. It will operate as a legally separate company with its own board, within the BT Group. 

    The regulator had pushed for the legal separation of Openreach on competition grounds. BT says around 32 thousand employees will be moved into the new company which will have its own brand without the BT logo.

    Investors pushing the stock about 3 percent higher on that news.


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  • These are the stocks at the top and bottom of the Stoxx 600 index. BT has topped the table after announcing an agreement with the U.K. regulation regarding Openreach.
     
     
     
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  • France's Alain Juppe announces he backs Francois Fillon and says he will be an official sponsor of the right-wing candidate for French president.
     
    Just days ago, Juppe slammed Fillon's campaign and last week there was speculation Juppe might replace Fillon as conservative candidate.
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  • UBS has revised down its 2016 profit by 102 million Swiss francs. Recently the bank reached a settlement with the National Credit Union Association over its mortgage-backed securities mis-selling.
     
    The Swiss bank revealed CEO Sergio Ermotti received 13-point-7 million swiss francs in pay for 2016, compared to more than 14 million francs a year earlier. 
     
     
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  • Erin Browne, Head of Macro Investments and Portfolio Manager at UBS O'Connor is on set to talk strategy.

    Over the medium term, Brown is bullish and expects to see defensive stocks sold as people buy into the reflation trade.

    While I'm a little bit defensive going into the French election, beyond that you want to be long the cyclical plays.
     
     
     
     
     
    Browne believes central bank stimulus has dampened volatility and the relationship between equities and volatility is rather broken.

    Erin Browne, Head of Macro Investments and Portfolio Manager at UBS O'Connor 
     

    She said there is an improving economic backdrop and there are good structural reasons for volatility to stay low.
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  • Volkswagen is planning to scrap bonuses for its supervisory board members. The company is looking to get certain costs back on track following the diesel emissions scandal.

    The German car group is expected to plead guilty to three charges related to misconduct in the United States.
     
     
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  • Repsol says it has discovered a giant oil field in Alaska. The Spanish company said the discovery in the Nanushuk field could amount to about 1-point-2 billion barrels of oil -- in what it said is the largest U.S. onshore oil discovery in 30 years.
     
    Repsol plans to start production in the area as early as 2021.
     
     
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  • You have had rising inventories and rising positioning and that is putting the market is a dangerous position right now.
     
     
     
    Erin Browne, Head of Macro Investments and Portfolio Manager at UBS O'Connor says she doesn't see a big oil sell-off around the corner but there is little out there to see it break out of its narrow trading range.

    In relation to equities, she says a stable oil price in the current range will not help move stocks higher. 

    Oil under recent pressure

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  • Just a reminder of where BT is right now after this morning's announcement that it has reached a deal to retain its network division Openreach.

    Openreach will be treated as a separate company but will still be part of BT. 

    That is likely to upset rivals such as Sky who claim BT does not invest enough in Openreach and that BT competitors are suffering from poor infrastructure.

    BT shares are flying along, almost 5 percent higher.


    We'll be speaking to BT CEO Gavin Patterson shortly after 10.a.m. London time.


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  • After 30 minutes of trade, our top stories look like this:

    • European stocks tick higher ahead of the February jobs report, as investors await a likely rate hike from the Fed next week. 
    • BT shares spike after the telecom group reaches a deal with media regulator OFCOM, resolving a two-year regulatory battle over OpenReach
    • Repsol uncovers the largest U.S. onshore find in 30 years in Alaska's North Slope, sending shares sharply higher. 
    • Speaking to fellow EU leaders in Brussels, British Prime Minister Theresa May confirms she will pull the trigger on Brexit by the end of this month, amid reports it could happen as early as Tuesday.


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  • President Trump has signaled he would like to improve American relations with Russia, including the possible removal of sanctions against the country. 

    Andrey Kostin, President, and Chairman at VTB Bank 
    says there is no foolish optimism that the Trump administration can remove sanctions but it will take time before Trump's key people can talk with Russian counterparts.

    Kostin says anti-Russian rhetoric in the U.S. is near hysterical but Russians stand ready to do business with America.

    I don't think the level of Russian relations with the United States can go much worse. It is near cold war levels.
     

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  • Andrey Kostin, President, and Chairman at VTB Bank is on set with the team now.

    He says relationships with the EU are being worked on by Moscow and the dialogue is more intensive than with America at present. 

    Kostin says his business is 85 percent Russian and Europe is a touch too competitive for the firm to make too much impact. 

    On Brexit, Kostin is no too concerned.

    We don't know what Brexit is but we don't see it affecting our London business.

     Andrey Kostin, President, and Chairman at VTB Bank

    The oil price has a direct correlation with the ruble.

    Kostin says the Russian budget is based on the assumption of  $40 per barrel and at this level the Russian spending plan will be safe.

    Geoff asks about the Russian mindset and if it is still dominated by Cold War thinking. Kostin argues that Russia is 25 years on and has changed its outlook.

    If the Soviet Union was in some way ideologically some kind of enemy to the West, today it is not. We have no ideological differences.

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  • The Stoxx 600 is stronger today, up by 0.35 percent.
     
     
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  • The European banking sector is rising sharply today and is currently just over a 1 year high.
     
     
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  • These are the top headlines for this hour:
     
    • Great expectations. European stocks tick higher ahead of the February jobs report, as investors wait for a likely rate hike from the Fed next week.
    • BT shares spike after the telecom group reaches a deal with media regulator OFCOM, resolving a two-year regulatory battle over OpenReach.
    • Oil discovery. Repsol uncovers the largest US onshore find in 30 years- in Alaska's North Slope, sending shares sharply higher.
    • Speaking to fellow EU leaders in Brussels, British Prime Minister Theresa May confirms she will pull the trigger on Brexit by the end of this month, amid reports it could happen as early as Tuesday.
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  • Oil is recovering marginally today. Prices have edged up,off the three-month lows hit yesterday as WTI fell below $50 for the first since mid-December.
     
     
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  • Richard Mallinson, geopolitical analyst at Energy Aspects, says there are some reasons to be positive regarding the OPEC oil production cut deal.
     
    OPEC compliance in both January and February was over 90 percent. At record levels compared to historical averages. Russia cut 100,000 barrels a day in January, it was expected to cut about a similar amount in February on the way to reaching its full target in March. 
     
    It didn’t deliver that in February and I think some of these comments do look like the Saudis reminding Russia of what it committed to.
     
     
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  • Rex Tillerson has recused himself from issues related to the Keystone XL pipeline. The U.S. State Department said in a letter to Greenpeace that Tillerson would play no role in the decision-making around TransCanada's application for a permit.
     
    The letter was in response to the environmental group's demand that the Secretary of State recuse himself given his former role as CEO of Exxon Mobil, and the likely benefit the oil major will receive if the pipeline is approved.
     
     
    Meanwhile, Environmental Protection Agency chief Scott Pruitt has questioned carbon dioxide's impact on global warming. Speaking to CNBC, Pruitt said he didn't believe CO2 was a primary contributor to climate change... thereby contradicting his own agency's findings.
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  • BT has reached an agreement with Ofcom to separate its broadband unit Openreach. It will operate as a legally separate company with its own board, within the BT Group. The regulator had pushed for the legal separation of Openreach on competition grounds.
     
    BT says around 32,000 employees will be moved into the new company which will have its own brand without the BT logo.
     
    Shares are up more than 4 percent today on the news.
     
     
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  • BMPS has approved a restructuring strategy after failing to raise enough capital from the market in December. The plan will now have to get the support of European authorities before the Italian government can bail out the lender. The state is expected to take a 70 percent stake in BMPS by pumping in over 6 billion euros of funds.
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  • Ritu Vohora, equity investment director at M&G Investments, says earnings around the world have actually beaten expectations. 
     
    If we look at the U.S. they were already sort of high expectations, they’ve been fairly robust. We’re seeing some downgrades in the U.S., but I think it’s a bit more euphoric. 
     
    If you look across areas like Europe and Japan, earnings growth is coming in around 11 percent, so very positive.
     
    I think when we look at equities now, valuations are clearly not cheap anymore, they’re probably around fair value, but if we see earnings growth through I think that should drive them higher.
     
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  • South Korea's constitutional court has decided to oust President Park, meaning she will be the first leader in the country's history to be removed from office by impeachment.
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  • Lots of U.K. data out now.
     
    The U.K.'s global good trade balance was minus £10.833 billion in January, versus minus 10.915 billion in December.
     
    The non-EU goods balance was minus £2.447 billion in January.
     
    The Q4 total trade deficit was revised to minus £5 billion from a previous estimate of minus £8.6 billion.
     
    U.K. January industrial output was minus 0.4 percent month on month, but grew 3.2 percent year on year.
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