World Markets Live - March 1 - CNBC Live Events
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CNBC Live Events

World Markets Live - March 1

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

  • The opening calls at the moment for Europe look like this.

    FTSE   7282   +3
    CAC   4865   +2
    DAX   11852   +8
    MIB   18969   +3
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  • Our headlines as we get going: 

    • President Trump promises tax relief but doesn't ignite markets by failing to provide any concrete measures, this after the Dow snaps its 12-day winning streak. 
    • Donald Trump also calls for a 'merit-based system' for immigration, but seemingly softens his travel ban amid reports Iraq has been removed from the restricted list. 
    • Going it alone. Fed policy-makers say they will not wait for tax reforms to take rates higher, sending odds of a March hike up to 80 percent. 
    • Sources tell CNBC Snap is looking to price its IPO above its range, taking the valuation to over 25 billion dollars in one of the most highly anticipated tech listings. 
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  • With all of the pomp and ceremony NBC's Tracie Potts has more of the highlights from the address:

    by david.reid
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  • Professor  Peter Trubowitz, Director of the United States Centre at the London School of Economics is on set with Philippa Malmgren, Founder of the DRPM Group.

    Both Americans are reacting to Trump's speech.

    Professor Trubowitz says these types of speech are not normally policy heavy and the main takeaways were the promise of $1 Trillion worth of infrastructure spend, immigration reform and the promise to work with global allies. 

    Trubowitz says Trump will need to cut a package that appeals to different parts of the party. He says Medicare and Social Security are obvious areas of contention within the Republican caucus.


    Phillippa Malmgrem says on tax reform the legislature has an "alignment of the stars" and with Republican control across both houses, Trump's team has a rare possibility to get things achieved. 

    At one point Trump used his speech to outline an America in the grip of a dark, criminal crisis.

    Malmgren says the "fiction" of a dystopian America is what got Trump elected and it is therefore not surprising that he has continued with it to help sell his program.

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  • Days after the White House announced plans to add 54 billion dollars in defense and security funding to the national budget, President Donald Trump reiterated his plans to ramp up spending. 

    Click play to hear how well that went down on Capitol Hill. 

    by david.reid
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  • Asia markets were mostly higher Wednesday morning, shrugging off modest U.S. losses from Tuesday.

    Traders focused on President Donald Trump's address to the U.S. Congress. Gains in the Japanese Nikkei were seen down to a slightly weaker yen.


    As a reminder, in the United States Tuesday it was a down day. The Dow Jones industrial average closed about 25 points lower, with Wal-Mart contributing the most losses. The index also snapped a 12-day winning streak, its longest since 1987.

    The S&P 500 declined 0.26 percent, with consumer discretionary lagging, snapping. Shares of Target dragged discretionaries lower, falling more than 10 percent on the back of weaker-than-expected quarterly results and light guidance. The Nasdaq composite fell 0.6 percent.

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  • Against a basket of currencies, the dollar gave back some of Tuesday’s gains on the back of Trump’s speech.

    However it has picked up off the lows since Trump has stopped talking and is up in session. 

    Some analysts see the growing prospect of a Fed rate hike later this month as the key driver of dollar policy.

    The probability of a March rate hike hit 80 percent at one stage according to data extrapolated from Federal Funds futures, but has since dipped.

    Dollar creeping up again 

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  • A lot of Fed chatter yesterday.

    San Francisco Fed President John Williams says that an interest hike will be under 'serious consideration' at the FOMC's March meeting. In his speech he likened the Fed to a tennis player who is now positioned in the center of the court and can "handle shots that come from either direction". 

    James Bullard made the case for the Fed to reduce its balance sheet during an appearance at George Washington University. The St. Louis Fed president also argued that the FOMC doesn't need to rush to raise rates given current inflation levels.

    Meanwhile, speaking exclusively to CNBC, Dallas Fed President Rob Kaplan said it's time for the central bank to pull back on its aggressive easing policies:

    We're making good progress on our employment objective. We're making good progress on inflation.  My own forecast for 2017 is growth in excess of 2%. Even before potential policies that could provide some upside.

    So in that context, I think we're getting closer to reaching our dual mandate objectives and we should begin the process of removing accommodation. I think even after we do that, we'll still be accommodative, but I think we should be taking steps to remove some amount of accommodation sooner rather than later.

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  • Jon Fortt is at the Mobile World Congress in Barcelona with PwC's global chair Bob Moritz.

    First on the agenda...that Oscars moment.

    Fronting up: PwC's global chair Bob Moritz

    Moritz says the first step to bouncing back is taking responsibility, second is working with the academy and third is repairing the PWC brand.

    We had a human issue, an human error and as a result we want to go forward with it.

    On Trump's speech and tax reform, Moritz says to have the discussion is great but the reality of getting something done by September is unrealistic.

    We haven't seen a bill yet, so getting something done within 200 days seems difficult.

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  • A reminder of our headlines

    • President Trump promises tax relief but doesn't ignite markets by failing to provide any concrete measures, this after the Dow snaps its 12-day winning streak. 
    • Donald Trump also calls for a 'merit-based system' for immigration, but seemingly softens his travel ban amid reports Iraq has been removed from the restricted list. 
    • The boss of accountancy firm PWC apologizes for the Oscar mix-up, telling CNBC it was a human error, but vowing to ensure quality going forward
    • Sources tell CNBC Snap is looking to price its IPO above its range, taking the valuation to over 25 billion dollars in one of the most highly anticipated tech listings. 
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  • UK February house prices came in 0.6 percent higher month-on-month according to Nationwide. That easily beating expectations.

    In January the figure was a 0.2 percent rise. 

    Year-on-year, the February figure marks a rise of 4.5 percent.

    Source: 2009 Getty Images 


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  • With all of the pomp and ceremony NBC's Tracie Potts has more of the highlights from the address:

    by david.reid

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  • Our guest host on Squawk Box Europe today is Simon Derrick, Chief Currency Strategist at BNY Mellon.   

    In his opening salvo, Derrick says he expects the Fed to raise rates on Wednesday 15 March.

    I think March does sound right, because it gives the Fed more flexibility later in the year. I think it lessens the possibility of creating market unrest during July and August. So I think it would be a smart tactical move. 

    Guest host today is Simon Derrick, chief currency strategist at BNY Mellon.   


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  • Ahold has posted a strong set of results in the fourth quarter with a 2.8 percent year-on-year increase in net sales. 

    The numbers were driven by a strong performance in the Netherlands and at Delhaize America. 

    A write up on the numbers are available here


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  • A modest but positive open predicted for European markets. 

    Bear in mind U.S. markets closed lower yesterday, but that was before Trump addressed Congress.


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  • The spread between U.S. and German 2-year government bond yields is at its widest in 17 years.

    It seems March is increasingly seen as a rate rise month in the United States. 

    Apologies for the chart below but the German 2-year dipped negative way back in 2014 and has never resurfaced.

    Paying to hold short term German debt 

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  • A few European stock stories to catch you up on this morning.

    Italian bank Banca Monte dei Paschi has failed to meet the deadline to sell credit servicing platform to information provider and ratings agency Cerved. The lender said that the two parties are now working on other ways to deal with BMPS' bad loans. 

    Meanwhile, Banca Carige announced a share issue of up to 450 million euros to offload its bad loans portfolio. The Italian bank said it's going to trim its impaired debts from 34 percent to 13 percent of total loans by 2020.

    And drinks maker Campari has posted a 4.2 percent increase in net sales for last year, in line with expectations. Results were boosted by a positive performance in key European markets and by the acquisition of French liqueur brand Grand Marnier.
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  • Is this a compelling sell signal for investors?

    This chart from the report tracks the divergence between company insiders and the market over the past year.

    It shows insider selling has risen to levels "rarely seen", according to a report from Vickers Weekly Insider. In the past week alone, sale transactions by company insiders outnumbered buy transactions by more than 11 to 1.

    Insider selling is on the rise. 


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  • All major sectors in the green as Europe opens up for trade.


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  • Individual bourses looking like this.



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  • The CEO of Deutsche Boerse has said in the last ten minutes that a transaction with the London Stock Exchange is now less likely.



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  • Some strong moves from these companies making headlines.

    Eni's fourth quarter profit topped analyst expectations as the oil and gas firm swung back to profit, boosted in part by stronger oil prices. Revenue for the quarter rose nearly 5 percent, while adjusted operating profit was up 12 percent.

    German e-commerce company Zalando has announced its first move into physical stores. The online fashion retailer is acquiring basketball chain Kickz and says it expects to invest 200 million euros and create 2-thousand jobs this year as it continues expanding.

    The announcement came as Zalando reported a 26 percent rise in sales for the fourth quarter, and forecast a 5 to 6 percent adjusted EBIT margin range for this year -- slightly below last year.


    Net income at grocer Ahold Delhaize fell 43 percent in the fourth quarter on deflationary pressures, particularly in its US market.
    The firm confirmed its 2017 target of 220 million euros net synergies from the merger of Ahold and Delhaize. The board also declared a dividend of 57 cents per share. 

    Alternative investment management business Man Group has posted a full-year pre-tax loss of 272 million dollars. The company was pushed into the red by a steep decline in performance fees and one-off impairment charges. However, Man Group's net inflows did rise to 1-point-9 billion dollars. 
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  • Bayer's gain is proving to be Covestro's pain. The German maker of Aspirin has placed 22 million Covestro shares after the stock nearly tripled since the spin-off of the business. 

    The stake sale will allow Bayer to reduce its debt pile and help fund the takeover of Monsanto. However, the placement at 66.5 euros a share is well below Covestro's closing price yesterday. 


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  • Just briefly, Sicilian volcano Mount Etna has erupted after being largely dormant for the past two years. 

    Check out these pictures:

    by david.reid

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  • The biggest winners and losers in European stocks so far are as follows. 

    Click or tap on an arrow to see the losers.

     
     

    1 of 2




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  • Attempting to understand the daily moves of markets can often be a fool's game but I think we can safely say that investors in Europe aren't in any way spooked by Trump's speech to Congress.

    Perhaps relieved? Earnings also a big factor.

    We are up nearly one percent.


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  • Swiss February PMI figures are revealing continued optimism in the country.

    The number coming in at 57.8, bettering expectations. Any number above 50 is considered expansionary.

    The Swiss currency trading flat against the euro.


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  • The Obama's have agreed a book deal with Penguin Random House. 

    The publisher won a bidding war to secure world rights to two books -- one to be written by the former president and the other by the former first lady. 

    Details of the agreement have not been disclosed, but the FT reports that the deal is worth over $65 million. Titles of the books or when they will be published are not yet known.

    The Obama's: A book or two to write. 

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  • Some news is coming regarding Francois Fillon and his candidacy to be France's next president.

    The team of the center-right candidate are to make a statement to media at midday, Paris time

    According to media, Fillon has canceled his appearance at an important agricultural fair and has been summoned by investigating magistrates.

    If you recall, this relates to 'Penelopegate' ,where Fillon was found to have paid his wife to undertake work, which some allege she never carried out.

    Fillon has been an on-off favorite to be the next president..

    Source: Getty Images 

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  • The German adjusted jobless rate for February is 5.9 percent, unchanged from January and matching the expectations of a panel of economists. 

    The euro zone final manufacturing PMI for February has come in at 55.4, just shy of forecasts.

    That figure still strongly in expansionary territory.

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  • Time for a reminder of our latest headlines:

    • French presidential candidate Francois Fillon is summoned by magistrates, after postponing his visit to an important campaign fixture. A media announcement is due at midday CET. 
    • President Trump promises tax relief but doesn't ignite markets by failing to provide any concrete measures.
    • Bad chemistry between Bayer and Covestro, as the German pharma group places 22 million shares in its spin-off, well below the market price. 
    • Shares in Man plunge as the Fund managers swings to a loss on the back of a steep decline in fee income, despite strong inflows. 
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  • French Presidential candidate Francois Fillon has reportedly been summoned by investigating magistrates. 

    His team say they will make a statement at 12:00 French time. Earlier this morning, the presidential candidate postponed his visit to the Paris Agricultural Salon, an important fixture on the campaign trail. 

    Bruno Cautrès, Political sciences professor at Sciences Po Paris says if Fillon drops out then the biggest beneficiary could be right wing candidate Marine Le Pen.

    He is telling CNBC that it would feed in to the narrative that the system is against the Front National and that le Pen is there to clean up politics.

    Cautrès rather qualifies that by pointing out that rival centrist candidate Emmanuel Macron will also benefit.

    Is Le Pen gaining momentum? 

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  • With all of the pomp and ceremony NBC's Tracie Potts has more of the highlights from the Trump address last night:

    by david.reid


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  • With the sense that the race could be run for former favorite Francois Fillon, the odds of right-wing candidate Marine Le Pen winning the French election appear to be narrowing.

    Our guest on set, seems to think so.


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  • Greece will take fresh austerity measures in a bid to secure further bailout funds, after talks with lenders resumed yesterday. 

    The Greek government announced cuts to income-tax-breaks and pensions last week, after negotiations stalled between the EU and the IMF. This in part due to a disagreement over the country's fiscal goals. 

     Source: Mateusz Wlodarczyk/NurPhoto

    Meeting members of the Hellenic Bank Association, Prime Minister Alexis Tsipras blamed Greece's economic crisis on the lenders: 

    The crisis started from banks' inability to provide liquidity (to the economy), and will finish with the end of this inability (to provide liquidity). And I think that this is the framework in which we need to see how we - banks, the government, but also agencies, social agencies, professional bodies, chambers - can work together effectively because now we have to plan the future.


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  • The confidence among U.K. business could be weakening. 

    The U.K. manufacturing PMI for February has come in at 54.6 , less than the 56.0 expected.  It marks the first month on month decline since August 2016. 

    Sterling dipping down against both the dollar and euro in the wake of that data.
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  • This is news to watch.

    According to Reuters, a senior U.S. official has told the United Nations Human Rights Council that the Trump administration is considering its "future engagement" with an eye to reform and balanced agenda.
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  • With Annette at the Super Return conference in Berlin is John W. Snow, Chairman of Cerberus Capital Management and former US Treasury Secretary.

    A confirmed Trump fan, the former US treasury Secretary says the promise to reduce taxes can work as a new tax bill can be pushed through by the house dominated Republicans.

    He also claimed Trump's America first plan will benefit Europe.

    He is a positive for Europe, because as America grows and becomes more prosperous the United States is going to buy a lot more from Europe

    Snow says the issues that pushed Americans towards Trump exist all over the world and that political leaders, particularly in Europe, should pay attention.

    Former US Treasury Secretary, John W. Snow  

    On Brexit, he says the devil is in the detail and the economic consequences will be unknown until a clearer picture emerges.
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  • U.S. futures appear to be in thrall to the message from Donald Trump at last nights address to Congress.


    CNBC's Jim Cramer is up nice and early to get on Twitter. His theory is the absence of drama from Trump is what might be pleasing equity traders.


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  • The North Korean state news agency (KCNA) has said any claim that Kim Yong Nam was murdered by a nerve agent is "absurd".

    Kim Yong Nam is the half brother of current North Korean leader Kim Yong Un and was allegedly killed on February 13 at Kuala Lumpur's main airport.

    Kim Yong Nam (L) and his half-brother Kim Yong Un

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  • The Bank of England has released data that shows foreign investors, to the tune of  £7.59 billion, were net sellers of British government bonds in January.

    That's the biggest net outflow in almost 3 years  according to @ReutersJamie.


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  • President Donald Trump delivered his first address to a joint session of Congress, in which he touted the early achievements of his administration while looking forward to the proposals he plans to bring to Congress in the coming weeks and months. 

    He described a "renewal of the American spirit", as he outlined plans to invest 1 trillion dollars in infrastructure, repeal the Affordable Care Act, and reform America's immigration policy. 

    © 2017 Bloomberg Finance LP 

    Trump described the U.S. as in the grip of the worst financial recovery in 65 years. and called on his fellow lawmakers to "restart the engine of the American economy".

    President Trump also vowed to reform America's tax policy, in what he described as historic tax cuts to benefit American companies. 

    Right now, American companies are taxed at one of the highest rates anywhere in the world. My economic team is developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone.  At the same time, we will provide massive tax relief for the middle class.

    Two days after the White House announced plans to add $54 billion dollars in defense and security funding to the national budget, Trump repeated his plans to ramp up spending. 
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  • Francois Fillon has announced he will continue to race to be the next French president.
     
    Fillon says he’s been informed he has been summoned by investigating magistrates. He said this could lead to charges and amounts to a "political assassination".
     
    This after his campaign manager has reportedly stepped down, according to French newspaper Le Figaro.
     
     
    Earlier this morning, the presidential candidate postponed his visit to the Paris Agricultural Salon, an important fixture on the campaign trail. 
     
    It relates to 'Penelopegate' ,where Fillon was found to have paid his wife to undertake work, which some allege she never carried out.
     
    Fillon was an on-off favourite to be the next president.
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  • European markets are pushing along nicely as morning trade ends. The buying is seen by some as a relief purchase following Trump's Congress speech which was less confrontational than some had predicted.

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