World Markets Live - March 2 - CNBC Live Events
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CNBC Live Events

World Markets Live - March 2

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

  • Our top news as we get underway:

    • The White House faces another internal issue amid calls for Attorney General Jeff Sessions to step down over reports he withheld details about communications with Russia. 
    • U.S. stocks have their best day of the year, with the Dow jumping over 300 points to close above 21 thousand, after President Trump raises hopes with his spending plan, and the Fed gets more hawkish 
    • The messaging app, Snap, prices above it's target range, valuing the company at 24 billion dollars as it prepares to start trading on the New York Stock Exchange. 
    • Earnings for the biggest companies in Europe hit the wires. We speak, First on CNBC, to the CEOs of Adecco, LafargeHolcim and Deutsche Telekom. 


    Comment ()
  • Opening calls for Europe today stand at these levels. 

    FTSE   7375   -4

    CAC 
      4958   +3


    DAX 
      12059   -4


    MIB
       19309   +17

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  • House Minority Leader Nancy Pelosi has called on Attorney General Jeff Sessions to resign following a report by the Washington Post that Sessions failed to disclose during his confirmation hearing that he had spoken with Russia's ambassador.      

    Sessions was asked at the hearing what he would do if he learned of any evidence of communication between the Trump Campaign and the Russian Government.   He responded  "I'm not aware of any of those activities," -- adding "I have been called a surrogate at a time or two in that campaign and I did not have communications with the Russians


    A call to resign has also come from Democrat Elijah E. Cummings, Ranking Member of the House Committee on Oversight and Government Reform.

    He has said Sessions position is not defensible.

    It is inconceivable that even after Michael Flynn was fired for concealing his conversations with the Russians that Attorney General Sessions would keep his own conversations secret for several more weeks.

    Comment ()
  • A raft of earnings just released to the market:

    Adecco's revenue in January and February 2017 is up 4 to 5 percent. The Swiss firm proposing a dividened of 2.4 Swiss francs per share.

    Deutsche Telekom reporting that fourth quarter revenue jumped 9 percent to 19.5 billion euros. However the firm reporting a quarterly net loss of 2.12 billion euros. Deutsche Telekom has written down a stake in British Telecom by 2.2 billion euros.

    Swiss Cement maker LafargeHolcim reporting an adjusted fourth quarter EBITDA of 1.61 billion Swiss francs. The sales figure of 6.5 billion Swiss francs missed teh Reuters forecast.

    And AB Inbev has reported a full year revenue gain of 2.4 percent. The Dutch drinks maker said full year volumes actually decreased by 2 percent.
    Comment ()
  • The Washington Post is leading the mainstream media charge on Jeff Sessions, although this story has been bubbling around for some time.

    In its latest edition the Post says Justice Department officials have confirmed that the then senator spoke twice last year with Russia's ambassador to the United States.

    However during his confirmation hearing to become attorney general he failed to disclose those meetings.


    The paper  reports that one of the meetings was between Sessions and Russian Ambassador Sergey Kislyak and took place at the height of what US intelligence officials say was a Russian cyber campaign to manipulate the U.S. presidential race.

    In a statement Wednesday night, Sessions said, "I never met with any Russian officials to discuss issues of the campaign. I have no idea what this allegation is about. It is false."

    Comment ()
  • Yesterday, U.S. markets were bombastic as investors bought in to the Trump mandate for change.


    U.S. equities surged to all-time highs Wednesday, the major indexes posting their best day of the year, on the back of President Donald Trump's speech to Congress.

    The Dow advanced about 300 points with Goldman Sachs contributing the most gains and closing above 21,000 for the first time. The 30-stock index first closed above 20,000 on Jan. 25.

    The S&P 500 climbed 1.4 percent, with financials rising 2.8 percent to lead advancers, and briefly broke above 2,400 for the first time. The index closed above 2,300 for the first time on Feb. 9. The Nasdaq jumped 1.4 percent.
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  • Steve and Geoff are both worried about market levels. 

    Geoff notes a cluster of events on the horizon that could threaten confidence.

    Meanwhile Steve highlights technical issues as valuations seems to exceed fundamentals:

    by david.reid
    Comment ()
  • Swiss fourth quarter GDP has come in at up 0.1 percent quarter-on-quarter which translates to a 0.6 percent rise year-on-year.
    Comment ()
  • Crude oil fell for a third consecutive session on Thursday thanks to  a record build-up in U.S. stockpiles.

    Crude stockpiles in the United States rose by 1.5 million barrels last week to reach a record total of 520  million barrels. 

    The U.S. is the world's biggest consumer of oil.


    Comment ()
  • McDonald's has announced it is planning to launch its own delivery service in the U.S. this year. It is an attempt to enter the $100 billion dollar global delivery market.  

    The fast food giant also told investors it will debut mobile ordering in roughly two thirds of its restaurants this year.  McDonald's says it is focused on opportunity for delivery in the U.S., U.K., France, Germany, and Canada.  

    There is a McDonald's within three to five miles of 75 per cent of the population in each country.

    McDonalds: Never far from home

    If you want more on this story, you can check it out here
    Comment ()
  • Our top news at this hour:

    • The White House faces another internal issue amid calls for Attorney General Jeff Sessions to step down over reports he withheld details about communications with Russia. 
    • U.S. stocks have their best day of the year, with the Dow jumping over 300 points to close above 21 thousand, after President Trump raises hopes with his spending plan, and the Fed gets more hawkish 
    • Deutsche Telekom swings to a loss in the fourth quarter after writing down its BT stake by 2 point 2 billion euros.  
    • Adecco launches a share buyback plan after the world's largest staffing firm sees solid full year sales. But the CEO tells CNBC the Brexit effect is beginning to show. 


    Comment ()
  • Snap Inc will make its public debut today on the New York Stock Exchange, after the company behind social media app Snapchat priced its IPO above its target range at $17 dollars a share, to raise $3.4 billion dollars.


    Leigh Drogen, CEO of Estimize is on set. Estimize is a crowd-sourcing tool which attempts identify the fundamental valuations of a company.

    He says in the case of Snap Inc, Goldman Sachs expects the company to be pull in $2 billion of revenue in 2018.  He says at that estimate, a company valuation of 24 billion starts to look a little high.

    Leigh Drogen, CEO of Estimize 

    Drogen says the company's advertising model is flimsy when compared with Snapchat.

    He says Snapchat has tapped in to the zeitgeist but worries that it could suddenly be replaced by the next big thing.
    Comment ()

  • I want to be particularly clear for overseas people and particularly investors..... 

    A goat, ok, a goat would beat Marine Le Pen in the second round.

    Thomas Guénolé, Political Scientist at Sciences Po says the far right cannot win this presidential election in France.


    Guénolé belives even a goat would beat Marine Le Pen in a presidential run-off

    Guénolé said new favorite,  39-year-old Emmanuel Macron, has waited so long to reveal his platform because he wanted to know if he should be a center-right candidate or a center-left candidate. 

    Now that Fillon has become the weak link, "surprise, surprise Macron came out as center-right."
    Comment ()
  • Leigh Drogen, CEO at Estimize says accusations that the remaining Obama administration officials are undermining Trump is not based in fact.

    These people are careerists. Most of the NSA is not appointed, a lot of the intelligence community and lot of the state department.  They don't switch over from president to president. They probably don't care about Trump's policies but do care that this man is leaning fascist.


    Drogen says the Republican party holds the strings on Trump's economic plan and much of it will likely fail to pass.




    Comment ()
  • Matthew Sheldon, Senior Portfolio Manager and Co-Manager of Water Strategy at KBI Global Investors is on set.

    He says less than one percent of water in the world is fresh water and de-salination is key.

    For a cubic meter of water it costs a dollar. For a farmer that's expensive, for a consumer that's cheap.

     A mothballed Santa Barbara desalination plant the city hopes to restart in 2017


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  • Continental has posted profit near the high end of expectations and said it expects an increase of more than 43 billion euros in sales this year. 

    The German automotive group also raised its dividend to 4.25 euros per share from 3 point 75 euros in 2015.


    Comment ()
  • LafargeHolcim shares are seen opening up, after the Swiss cement maker beat expectations with its fourth quarter core earnings. It posted EBITDA of 1.6 billion Swiss francs, helping the company hit its full-year profit target.

    On air is Eric Olsen, the CEO of LafargeHolcim. he says a 1 trillion investment in U.S. capacity is set to reap benefits.

    The U.S. is one of our big opportunities . We are the leading cement producer in the US and we have 30 percent available capacity due to investment in the last 3 or 4 years.

    The important thing to remember is that we believe there will be a big commitment to investment in the United States and the economy is also on an upswing.

    Eric Olsen, the CEO of LafargeHolcim 

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  • A flat open for the biggest stocks across Europe when you average them out.



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  • The best and worst of the sectors. On air, Steve makes the point that Basic Resources often races out of the gate only to drift lower later in session. One to watch then.

     
     

    1 of 2



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  • A clear lack of direction in markets on a busy earnings day.



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  • Adecco's revenue in January and February 2017 is up 4 to 5 percent. The Swiss firm proposing a dividened of 2.4 Swiss francs per share.

    Deutsche Telekom reporting that fourth quarter revenue jumped 9 percent to 19.5 billion euros. However the firm reporting a quarterly net loss of 2.12 billion euros. Deutsche Telekom has written down a stake in British Telecom by 2.2 billion euros.

    Swiss Cement maker LafargeHolcim reporting an adjusted fourth quarter EBITDA of 1.61 billion Swiss francs. The sales figure of 6.5 billion Swiss francs missed teh Reuters forecast.

    And AB Inbev has reported a full year revenue gain of 2.4 percent. The Dutch drinks maker said full year volumes actually decreased by 2 percent.

    Comment ()
  • Here are your best and worst. 

    Roche near the top of the tree. This after the Swiss pharma group announced the success of a key cancer drug trial, that will help it stave off competition from cheaper rivals. Clinical results show that a combination of Roche's Her-ciptin medicine and the newer Per-jeta drug, together with chemotherapy, reduce the recurrence of aggressive breast cancer. According to Citi analysts the trial result could give Roche an additional $2 billion in sales.


    Here are your worst performers out of the gates. Across Europe, the biggest loser is U.K. building supplies firm Travis Perkins.

    Travis Perkins said pretax profit fell 67 percent in 2016 as the company shelled out for restructuring.


    Luxottica shares are sliding this morning after the eyewear maker delivered a cautious outlook for 2017. 

    Luxottica forecast revenue growth of "low to mid" single-digits at constant currencies this year. This after the Italian company reported a slight drop in operating profit in 2016, amid slowing sales.

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  • The House of Lords has backed an amendment guaranteeing the rights of EU citizens to remain in the UK. 

    The matter goes back to the House of Commons, where the Prime Minister can reject the amendment. Theresa May wants a "clean bill" and is offering no such rights to EU citizens ahead of negotiations with Europe.  

     When a bill goes between the U.K's two houses it's often described as "ping pong".

    Source: Getty Images 

    Comment ()
  • After half an hour of trade in Europe, our top stock stories are as follows:

    • Shares in Roche rally as a key trial shows that a combination of two of the pharma group's oncology drugs can reduce the occurrence of breast cancer. 
    • Shares of Lafargeholcim rise after the cement maker posts better than expected earnings for the fourth quarter. CEO Eric Olsen says the company will benefit from US infrastructure spending under President Trump. 
    • Travis Perkins slides to the bottom of the Stoxx 600 after reporting a 67 percent fall in pretax profit. 
    • Snap Inc prepares to go public just a day after the Dow jumps over 300 points to close above 21 thousand. 
    Comment ()
  • French conservative candidate Francois Fillon has promised he will continue with his presidential campaign despite being put under investigation. Speaking during a press conference in Paris yestaerday , Fillon called the probe a 'political assassination'.

    Meanwhile, centrist presidential candidate Emanuel Macron said he plans to ban lawmakers from hiring family members and carrying out consulting activities. Macron is expected to unveil his political manifesto at a press conference later today.

    Photographer: Chris Ratcliffe/Bloomberg

    Comment ()
  • Shares in Swiss pharma giant Roche are trading at 9-month highs after the pharma group announced the success of a key cancer drug trial. 

    Clinical results show that a combination of Roche's Herceptin medicine and the newer Perjeta drug, together with chemotherapy, reduce the recurrence of aggressive breast cancer.

    Shares in Roche are flying this morning.


    Severin Schwan CEO of Roche talked to Carolin about the significance of the trial.

    by david.reid



    Comment ()
  • The FTSE has hit a new record high. The peak this morning so far was 7,394.61 according to Reuters data.


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  • Snap Inc will make its public debut today on the New York Stock Exchange, after the company behind social media app Snapchat priced its IPO above its target range at 17 dollars a share, to raise $3.4 billion dollars.

    Steve has worked out that Snap Inc is has a trailing price over revenue ratio of 59 times. 

    We are being asked to buy something on 59 times trailing. Should I be very concerned about the sanity of anyone who might be buying this?

    This table shows just how big the Snap IPO is.


    Neil Campling, Global Head of TMT Research, Northern Trust Capital Markets says accelerated organic revenue growth will be key to Snap's success. On user growth he says it is already slowing and that is a worry.

    Campling says trying to judge another key metric, the average revenue per user, is both critical and highly difficult.


    Comment ()
  • Analysts at Goldman Sachs have said a March rate hike could send the U.S. dollar ten percent higher.

    They wrote that a Fed rise in March would lead to two more in 2017 and three more in 2018.

    Goldman says the 2-year interest rate differential is most crucial to the dollar and a 100 basis point increase in 2-year dollar interest rates translates to a dollar appreciation versus G10 currencies of about 10 percent.


    Comment ()
  • Morgan Stanley and Goldman should hang their heads in shame here. I mean not about the valuation but non-voting shares? 

    Isn't that the ultimate example of bubble trouble? I say we are in a bubble, there is no value and investors should take a lot of risk off the table.

    Stephen Isaacs, Chairman of the Investment Committee at Alvine Capital says investment banks behind Snap's public debut are taking liberties with investors. 

    Snap Inc will make its public debut today on the New York Stock Exchange.

    Isaacs says the Snap Inc IPO could come to symbolize something bigger than just the deal itself.

    Sometimes a deal at the top of the market can be something that crystallizes the insanity.

    Comment ()
  • Is Russia interfering in the German election campaign?

    by david.reid
    In the latest election poll from Germany, the Social Democrats have narrowed the gap with Merkel's CDU and CSU sister party. 


    Comment ()
  • A North Korean official has said the most likely reason for the death of Kim Yong Nam is a heart attack.

    The half brother of Korean leader Kim Yong Un died on February 13 after collapsing in Kuala Lumpur's main airport. 

    Malaysian officials accuse two women of murdering him using a toxic substance.

    Kim Yung Nam (L) opposite his half brother and North Korea leader Kim Yong Un (R)

    Comment ()
  • Centrist French presidential candidate Emmanuel Macron is delivering his economic manifesto in a speech in Paris.

    39-year-old Emmanuel Macron 

    So far Macron has said he would sell down 10 billion euros worth of government stakes in major French companies, a pillar of his manifesto. 

    He is trying to appeal to the broad base:

    I want this project to allow France to enter the 21st century and allow everybody to find its place.

    We are a big country of the EU, but the only that has not found a way to reduce its mass unemployment in 30 years.


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  • Hat-tip to Carolin for providing a list of companies the French government has a stake in. 

    We are looking at this because the potential future president of France Emmanuel Macron has said he would sell 10 billion euros worth of government holdings in listed companies.

    La Poste
    France Télévisions
    Radio France
    SNCF
    Régie autonome des transports parisiens
    Nexter
    Areva (89.9%) 8.4% directly by the French State and 85% owned by *French Alternative Energies and Atomic Energy Commission which is state-owned.
    Électricité de France (84.4%)
    Aéroports de Paris (52%)
    Française des Jeux (72%)
    Dexia Credit Local
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  • Consumer prices have risen at the highest rate in almost 4 years in the euro zone. 

    The February CPI estimate has come in at 2.0 percent year-on-year growth, matching forecasts.

    Eurostat confirms the January figure as 1.8 percent. 

    The euro is lower than the dollar in session. The greenback is rising against all currencies mind you.


    Comment ()
  • The CEO of German auto-parts firm, Continental, is on air explaining results and looking forward to future business.  

    Elmar Degenhart
     claims the company is experiencing high revenue growth from digitization of the auto industry. 

    And he says the company is positioned to outperform the sector by 4 to 5 percent.

    Continental posted profit near the high end of expectations and said it expects an increase of more than 43 billion euros in sales this year. The German automotive group also raised its dividend.

    Continental CEO Elmar Degenhart 

    Degenhart says the rising price of rubber futures will affect his company's tire division to the tune of 500 million euros.

    He says raising the price of tires is the only realistic option.
    Comment ()
  • A big day in the United States stock markets yesterday.

    This chart, assuming you can see it, shows you yesterday's three main U.S. indices. 

    The blue bar represents the gain (in this case) from the open to the highest point of the day. The yellow shows you the change from open to the close and the red shows you the open to the lowest intra-day level.


    For today U.S. futures suggest a mild pull-back is likely.


    Comment ()
  • Gold prices have slipped in session as the dollar firms.

    For the uninitiated, Gold is priced in dollars and therefore moves inversely with the currency.

    The dollar has risen after hawkish comments from U.S. Federal Reserve officials. Reuters data this morning put the chances
    of a 0.
    25 point rate hike at the March Fed meeting  at 74.
    2 percent.  

    Yesterday at this time, it was 67.5 percent.

    Comment ()
  • She's off-air but not off the clock. Carolin Roth highlighting some of the conversation snippets coming out of the Deutsche Telekom press conference following results.

    Of particular interest is the future of Telekom subsidiary T-Mobile US.


    The CEO has also said he favors consolidation in general but the firm does not have to do it.
    Comment ()
  • Euro zone inflation rose to 2 percent in the 12 months to February, driven by energy prices
     
    Florian Baier, senior economist at Fathom Consulting, predicts we will begin to see German bond yields decouple from U.S. Treasuries.
     
    We continue to believe that underlying inflation will remain weak and that expectations of ECB tightening are premature.

    Bunds will continue to decouple from US Treasuries: we see Bund yields rising to 0.50% from 0.29% at the time of writing, below consensus expectations of 0.69%.
     
     
    Comment ()
  • Snap Inc will make its public debut today on the New York Stock Exchange, after the company behind social media app Snapchat priced its IPO above its target range at $17 dollars a share, to raise $3.4 billion dollars.
     
    This table shows just how big the Snap IPO is.
     
     
    CNBC's Steve Sedgwick has worked out that Snap Inc is has a trailing price over revenue ratio of 59 times. 
     
    We are being asked to buy something on 59 times trailing. Should I be very concerned about the sanity of anyone who might be buying this?
    Comment ()
  • Snap's IPO pricing gives it a market value of around $23.6 billion. 
     
    Solberg Audunsson, co-founder of marketing platform Takumi, explains why Snap is a hot commodity.
     
    The reason why Snapchat has become such a valuable company is because of its innovation in camera tooling as much as social platform innovation. It has created a series of fun and innovative tools and features, such as filters, front-facing flash and stories, that have successfully turned people's mobile phones into an easy-to-use content creation, editing and production suite.” 
     
    The ease of use and features have successfully democratised content creation and allows anyone to direct video narrative, not just repost memes or take photographs with nice filters. Lowering barriers for creation has been at the heart of Snap Inc’s strategy. Time will tell how they will be rewarded and if they can once again recapture a lead over Instagram in terms of innovative tooling.
     
    That’s where the real value lies with Snap Inc. and will continue to be as it becomes a publicly listed company.
     
     
    Comment ()
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