World Markets Live - March 22 - CNBC Live Events
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CNBC Live Events

World Markets Live - March 22

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

  • This is the latest image from the Houses of Parliament where there has been a security incident. 

    Reports of two incidents are filtering through. One suggesting that a vehicle has crashed into several people on Westminster Bridge.

    The second suggesting that a man has been shot by police after an officer was stabbed.

    At this stage, the connection between the two events is unclear.

    U.K. Houses of Parliament  

    by david.reid edited by Spriha Srivastava 3/22/2017 3:15:28 PM
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  • Good morning and welcome to World Markets Live. Full blog coverage will begin from 6am.
     
    For now, here are the opening calls for Europe.
     
     
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  • These are the top headlines this morning.
     
    • U.S. equities suffer their worst losses since Donald Trump's election as investors lose faith in the pace of reform, despite the President's message that changes are underway. 
    • Financials lead the declines, as more than double the daily average volume on the banks index takes it nearly 5 percent lower, with heavy losses for Goldman Sachs in particular. 
    • French interior minister Bruno Le Roux resigns amid a scandal over employing his teenage daughters as parliamentary assistants, but he insists he did nothing wrong. 
    • And coming up, CNBC speaks exclusively to Germany's deputy finance minister Jens Spahn, who says he expects heated campaigns over immigration ahead of the general election. 
       
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  • U.S. stock markets retreated yesterday, declining by more than 1 percent for the first time in 109 trading days.
     
     
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  • The Dow and Nasdaq suffered their biggest falls of the year. Investors grew concerned that the U.S. president would may to deliver pro-business reforms.
     
    Markets are still up significantly since Trump's election in November.
     
     
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  • Financials led the declines in U.S. stocks.
     
    The SPDR S&P Bank exchange traded fund fell nearly 5 percent yesterday. Here's a look at how some major U.S. banks performed.
     
     
     
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  • President Trump has told House Republicans it's time to keep their promise to repeal and replace the Affordable Care Act. 
     
    The President told GOP politicians they could lose their seats in the next election if the Republican health care reform plan fails. The House is due to vote on the bill this week. 
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  • NBC's Blayne Alexander has the latest from Washington on the health care reforms.

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  • Dennis Gartman, editor & publisher of The Gartman Letter, thinks yesterday was the start of a 5 percent correction for U.S. stocks.
     
    I view (yesterday) very seriously. It’s not just what happened in the equities markets, but gold broke out to the upside, closing right on the highs; the bond market broke on the upside, closing right on its highs; base metals closed on the downside, right on their lows; crude oil closed on the downside, right on its low.
     
    This is not just a one-off circumstance in the equities market, this is something that has happened all across the universe of capital markets and I think we need to pay attention.
    He advises investors to be careful and says he hopes this is just a 5 to 7 percent market correction and not something worse. 
     
     
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  • Here's TL;Dr with a summary of the main headlines from overnight.
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  • White House spokesman Sean Spicer told CNBC that markets are not 'real indicators' of the economy, despite President Trump taking to Twitter to hail stock market gains. 
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  • France's Interior Minister, Bruno Le Roux, resigned after it was revealed he paid his teenage daughters for work in the French legislature, using state funds.
     
     
    Financial prosecutors opened an investigation into the matter after reports surfaced in the French press. Le Roux said the payments were made for actual work, but that he did not want the investigation to be disruptive to the Ministry. 
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  • In Germany, the latest poll from INSA for Bild newspaper shows the Social Democrats have overtaken Chancellor Angela Merkel's CDU/CSU, with 32 percent of voters' support ahead of the coalition's 31 percent. 
     
    CNBC's Annette Weisbach spoke to Jens Spahn, deputy finance minister, about the election. He says it is becoming a close race.
     
    We do see that the little parties, even the more extreme parties, they suffer from this, because when it gets more amazing in the middle, in the center, then they get less interest from the people.
     
     
     
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  • The Labrador retriever has retained its title as the most popular dog breed in America. The Lab held on to the American Kennel Club accolade for the 26th consecutive year.
     
    The German shepherd claimed the second spot, while golden retriever and English bulldog came third and fourth respectively, and Beagles rounded out the top five. Rottweilers were named the eighth most popular breed, climbing to their highest ranking in 20 years.
     
    Also, here's a bit of fun. Which of these dogs belongs to which CNBC anchor? One belongs to Steve Sedgwick and the other to Karen Tso.
     
     
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  • The S&P financial sector sank 2.87 percent, its biggest daily fall since June.
     
    U.S. banks were the biggest drag on yesterday's market sell-off as investor concern grows that President Trump's tax reform, healthcare reform and financial deregulation plans may take longer to pass than initially thought.

    U.S. banks had rallied 22 percent since the U.S. election through to Monday, double the S&P 500's gain. 
     
     
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  • CNBC spoke to Jens Spahn, deputy finance minister, about the upcoming German elections. Here's what he had to say.

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  • Gerard Cassidy, managing director of equity research at RBC Capital Markets, says an important change for the banking sector in the short term is new appointments to the regulators, meaning changes are coming that may be beneficial.
     
    What we’re going to see is lower expenses for the regulatory costs to these banks. Second, it’s going to free up more capital.Once again, the Fed is the one that determines how much they can give back and a new Fed vice chairman might give back more (than the current chairman).
     
     
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  • U.S. investment banks seem to be dominating their struggling European peers, expanding their market share to around two thirds of the global investment banking pie.
     
    JP Morgan retained its place at the top of the league table based on revenue. The top five places are now firmly in the hands of U.S. banks.
     
    The gap between European lenders and their American peers has been widening since 2011, when the split was roughly 50-50.
     
     
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  • A North Korean envoy has told Reuters that the country does not fear further sanctions from the United States.

    The deputy ambassador in Geneva said that North Korea will continue to accelerate its nuclear and ballistic missile programme. This follows a report suggesting that the Trump administration was looking at measures to cut off the country from the global financial system.
     
    Meanwhile, North Korea's latest attempt to test a missile has failed. That's according to the U.S. military who say a rocket appeared to explode within seconds of blasting off.

    The U.S. spokesman said they were working with regional partners to get a better assessment of the test.
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  • Moody's says the asset management divisions of U.K. insurers are set to benefit from their pensions expertise.
     
    However the credit agency added that a higher dependence on asset management will increase their exposure to the tough conditions in the industry. It says insurers and fund managers are increasingly competing for the same assets which is leading to cost convergence.
     
    Meanwhile, assets under management for global hedge funds hit a record high in February, according to a report from Eureka Hedge. Event-driven and distressed debt focused-funds have seen the highest returns so far in 2017.
     
     
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  • These are the top headlines for the hour.
     
    • U.S. equities suffer their worst losses since Donald Trump's election as investors lose faith in the pace of reform, despite the President's message that changes are underway.
    • Financials lead the declines, as more than double the daily average volume on the banks index takes it nearly 5 percent lower, with heavy losses for Goldman Sachs in particular.
    • ING comes under criminal investigation for money laundering and corrupt practices, prompting the Dutch bank to warn of 'significant penalties' from a bribery charge.
    • French interior minister Bruno Le Roux resigns amid a scandal over employing his teenage daughters as parliamentary assistants, but he insists he did nothing wrong.
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  • ING Bank has revealed it is the subject of criminal investigations by Dutch authorities regarding various requirements related to the on-boarding of clients, money laundering, and corrupt practices.
     
    The company had this to say in its annual report.
     
    The total amounts that need to be repaid or compensated in some cases still need to be determined. ING may decide to appeal against adverse rulings. Although the outcome of the pending litigation and similar cases that may be brought in the future is uncertain, it is possible that the courts may ultimately rule in favour of the claimants in some or all of such cases. A provision has been taken. However, the aggregate financial impact of the current and future litigation could become material.
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  • Asian stocks posted their biggest drop in two weeks today, following U.S. markets lower on concerns about President Trump's plans for the economy and whether or not he can get them through the Senate and Congress.
     
     
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  • Some of the market moves have been blamed on the chill in Congress. But President Trump took to the podium in Washington to try and calm concerns around the pace of his healthcare reforms.

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  • Kingfisher reports full year underlying pretax profits rose 14.7 percent to £787 million.
     
    The company increased its dividend by 3 percent, after posting that total adjusted sales in constant currencies rose 1.7 percent. Sales for the full year came to £10.44 billion.
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  • The race for the German elections is starting to gain pace, as the latest poll from INSA for Bild newspaper shows the Social Democrats have overtaken Chancellor Angela Merkel's CDU/CSU, with 32 percent of voters' support ahead of the coalition's 31 percent.
     
     
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  • Over half an hour until the start of European trading and markets are called lower.
     
     
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  • Dennis Gartman, editor & publisher of The Gartman Letter, spoke to CNBC this morning, says that U.S. stocks are set for a 5 percent market correction, but warns that it could get worse than that.
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  • The U.K. has followed the U.S. by introducing a cabin baggage ban on larger electronic devices on certain flights. Laptops, tablets and phones will have to be checked into hold luggage on all direct flights to the U.K. from Turkey, Lebanon, Jordan, Egypt, Tunisia and Saudi Arabia.
     
    The British government said the ban followed talks on air security and was "necessary and proportionate".
     
    Several Middle Eastern airlines are under pressure today in response to the announcement. Both Turkish Airlines, TAV and Pegasus are all trading lower. 
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  • PSI Group reports an EBIT of 11.8 million euros for the financial year 2016, compared to 11.1 million euros the year before.
     
    Full year group net results increased by 14.6 percent to 8.5 million euros, from 7.5 million euros the year before.
     
    However, full year sales declined 3.7 percent as a result of its automation business in South East Asia.
     
    New order also fell by 6.7 percent.
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  • The upcoming elections in France and Germany have brought a new degree of political uncertainty to investors.
     
    Carsten Nickel, managing director of Europe at Teneo Intelligence, is closely watching the election in the western German state of Saarland, as he says it will be a test of the 'Schulz effect', a reference to Chancellor Merkel's rival and SPD leader Martin Schulz. 
     
    Usually, these regional state elections are watched if you want some more clear cut indications then just what’s happening in the national polls.
     
    I think if you want to take over the chancellery, you need to show in the regional states that you are able  to win and that’s exactly what’s at stake on Sunday.
     
     
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  • AkzoNobel announces it rejects a second unsolicited merger proposal from PPG, Reuters reports.
     
    The company says the proposal fails to recognise the value of AkzoNobel and fails to address significant risks and uncertainties. The company's board raised concerns in their initial rejection of March 9th and these have not been addressed.
     
    The company also warned a merger would lead to significant job cuts.
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  • According to AkzoNobel, the revised proposal values the company's shares at 88.72 euros.
     
    This would give the company a market cap of around 22.37 billion euros.
     
    The market cap is currently 19.32 billion euros, at 76.60 euros per share.
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  • Invision posts full year total revenue of 12.426 million euros, compared to 12.708 million the year before.
     
    Group EBIT increased 33 percent to 3.547 million euros in 2016, from 2.676 million the year before.
     
    Invision proposes to pay a dividend of 50 cents per share.
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  • Following a day in which the cream came off U.S. stocks, it is no real surprise to see the bigger companies in Europe lose some capital value.
     
    This is the average value after only a few seconds. We wait to see how trading settles.
     
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  • On a sector basis, it looks like this with Basic Resources giving up some of the strong ins it has enjoyed in recent weeks.

    Banks also struggling, which is in line with yesterday's trading stateside.
     

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  • And as trades process, we can see some further losses broken down across the major European bourses.


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  • Danish retails sales volume in February contracted 3.4 percent year on year, according to Statistics Denmark.
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  • South Africa's current account deficit in Q4 was 1.7 percent of GDP versus a revised deficit of 3.8 percent in Q3, according to the country's central bank, as exports increased 2.9 percent in volume terms and 3.7 percent in value terms.
     
    The deficit totalled 76 billion rand, versus 166 billion rand the previous quarter.
     
    The deficit was less than expectations of 3.5 percent of GDP and 147 billion rand.
     
    Also, headline inflation in South Africa grew 1.1 percent month on month in February, compared to 0.6 percent in January. This was below expecations.
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  • European banks are giving back some recently gained territory this morning. That following a sell-off in the sector in the United States yesterday. U.S. financial shares registered around twice the usual volume of trade Tuesday.



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  • ING says penalties resulting from a criminal investigation could be "significant". The Dutch bank disclosed in its annual report, published last week, that it was under investigation for money laundering and corruption. A spokesperson today confirmed the probe but did not confirm a local report that it relates to bribes made by several telcos to the daughter of the former president of Uzbekistan.

    UBS CEO Sergio Ermotti says he sees funding cost headwinds in 2017. The impact will be most felt in the investment bank and wealth management, as well as personal and corporate banking. 


    Kingfisher has posted a better than expected 8.3 percent rise in annual profit. Total adjusted sales rose nearly 9 percent to £11.2 billion pounds. The home improvement retailer reaffirmed its five-year targets but said it remains cautious on the outlook around Brexit and the upcoming French election.

    AkzoNobel has rejected a second takeover bid by PPG. The paints and coatings maker said the 88.72 euro per share proposal failed to reflect the company's value and also neglected to address significant risks, including anti-trust concerns. PPG made an initial offer of 83 euros a share, valuing the company at 20.9 billion euros.

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  • Christian Gattiker, chief strategist & head of research at Julius Baer, thinks markets are getting way too excited about political risks and events, while ignoring economic fundamentals.
     
    I think that’s our main takeaway from the past 12 months and all the discussions we had last year, and very much so into 2017, where everybody is bothering, especially in Europe, about the European side of politics. It’s just overblown and basically it’s just a major distraction from what is really driving markets, from fundamentals.
     
     
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  • Deutsche Bank WON'T be subject to a class action over mortgage claims, a US judge has ruled. 

    The federal judge said investors seeking to hold the German bank liable for over 3 billion dollars of losses related to toxic residential mortgages cannot pursue their claims as a group.

    Shares taking another leg down this morning, but that partially in line with the wider market. That cliff edge fall you can see from yesterday relates to the German bank's latest capital hike.


    Separately, the Handelsblatt newspaper has reported that Deutsche Bank has agreed to a 450 million euro settlement with investors in connection with the bankruptcy of Iceland's Kaupthing.
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  • Christian Gattiker, chief strategist & head of research at Julius Baer, discusses investing in banks.
     
    These are highly volatile animals. But in our view, a lot of things are turning out right for banks, not only the yield levels which are actually supporting banking business and increase in economic activity and improvement in the character party risk of banks, but also things like in Europe, where you had major recapitalization needs which is more or less met by Unicredit, by Deutsche and so forth.

    Gattiker says things are moving in the right direction and now is a good time to start adding banking stocks, especially after yesterday's pull back.
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