World Markets Live - March 3 - CNBC Live Events
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CNBC Live Events

World Markets Live - March 3

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

  • Some headlines to get Friday going:

    • Investors snapping up the tech IPO of the year, sending shares in Snap higher by over 40 percent on its opening day of trade, valuing the messaging app at nearly 30 billion dollars. 
    • Major markets post their sharpest pull-back since January as investors await more clues from the Fed on a March rate hike when Janet Yellen speaks later today. 
    • A private email scandal. But this time in the Republican camp as it's revealed Vice President Mike Pence used his personal address to discuss state business. 
    • A seemingly doomed deal casts a shadow over LSE earnings, as shareholders hope for more details on the next steps with Deutsche Boerse. 



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  • European opening calls suggest a pull back is likely:

    FTSE   7365   -18
    CAC   4947   -16
    DAX   12015   -43
    MIB   19352   -84

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  • Shares of SNAP popped in the company's initial public offering on the New York Stock Exchange, finishing the day 44 percent higher at $24.48 cents a share.


    SNAP opened the day trading at $24, a 41 percent rise in its listing price of $17 a share. Its closing price values the company at more than 28 billion dollars, roughly in line with the valuation of Target and Marriott. According to CNBC sources, the IPO was 12 times oversubscribed. 


    As investors snapped up more than 200 million shares, questions remain over Snapchat's long-term growth and valuation. The key metric investors are watching is the app's daily active users. Snapchat's D-A-U year-over-year growth declined from 65 percent in the June 2016 quarter to 62 percent and 48 percent in the September and December quarters respectively. A further deceleration of D-A-U growth is forecast for the coming years. 


    One big winner in the SNAP IPO is Morgan Stanley, the lead underwriter in SNAP's public debut. The bank is set to bring in almost 26 million dollars in fees, according to the Wall Street Journal. Goldman Sachs, another key underwriter, could make as much as 21 million dollars from the listing. 
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  • U.S. Vice-President Mike Pence reportedly used a private email to discuss public business, including security matters,  while governor of Indiana.  Newspaper USA Today reports that public records show Pence used his personal AOL account to discuss topics including the state's response to terror attacks.  Pence's private email account was hacked in June and he set up a new account.

    Pence's office released a statement acknowledging Pence had a private email while governor, but neither denying nor confirming the report.


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  • China's national people's congress opens on Sunday with over 3,000 officials descending on Beijing where the country's economic stability and tax reform will be among the key topics under discussion. 

    Elements to look out for include:

    • Corporate tax reform
    • The central bank press conference
    • Statements on competition law

    Eunice is in Beijing. She says the congress is more of a "rubber-stamping" exercise where votes will ultimately fall on the side of what the government wants.

    Eunice Yoon: China watchers ready to focus on language at national congress

    Eunice says the key will be to hear what Chinese Premier Li Keqiang says about the annual growth target.

    If he says 'around 6.5 percent' then the word 'around' is important because it means China is ready to accept growth slightly less than 6.5 percent.
     
     

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  • U.S. Attorney General Jeff Sessions has announced he will recuse himself from any investigation into Russian influence on the U.S. presidential election.

    NBC's Pete Williams has more from the Department of Justice. Click play to see his report.

    by david.reid
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  • U.S. equities paused Thursday after a record-setting rally Wednesday, while investors digested higher rate-hike expectations and Snap’s strong IPO.

    The Dow Jones industrial average fell about 100 points, with Caterpillar contributing the most losses. Caterpillar's stock declined more than 4 percent after law enforcement officials searched their offices.  

    The S&P 500 declined 0.6 percent, with financials declining more than 1 percent. The Nasdaq composite fell 0.7 percent.


    Investors will shift their attention to Janet Yellen today, as she is set to speak at 1 p.m. ET/ 6 p.m. London. 

    Market expectations for a rate hike are already through the roof, but there is chatter that Yellen may try and give herself some wiggle room just in case the jobs report on March 10 comes out weak.
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  • Asia markets traded lower Friday, following an overnight decline in U.S. equities, as the market priced in increasing chances the Federal Reserve might hike interest rates later this month.

    European markets are set to open lower as global investors digest recent record highs and the prospect of a U.S. rate rise.

    The FTSE 100 is seen 18 points lower at 7,365; the CAC 40 is set to open down by 16 points at 4,947, and the German DAX is seen lower by 43 points at 12,015.

    Aside from Fed chair Janet Yellen's speech, which will start after European markets close, the focus will remain on earnings with the world’s largest ad agency WPP and the London Stock Exchange reporting their latest numbers.

    In terms of data, the euro zone will receive its latest retail sales figures and a final reading of a Markit PMI (purchasing managers’ index) index. 
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  • Investigators have raided the home of embattled French presidential candidate Francois Fillon, according to a report in 'Le Parisien' newspaper. 

    The centre-right politician is under investigation for claims he paid his wife and children hundreds of thousands of euros for work they did not do. Francois Fillon denies the allegations and is pushing ahead with his campaign. 

     Francois Fillon with wife, Penelope Fillon

    Meanwhile, Marine Le Pen, the leader of the far-right 'Front National' party, is on course to win the first round of voting in the French election. That's according to the latest poll from IFOP.

    However, the survey finds that centrist candidate Emmanuel Macron is likely to beat Marine Le Pen by a comfortable margin in the final round of voting on May seventh.  
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  • A firm backed by Sports Direct owner Mike Ashley has bought Agent Provocateur.

    After going into administration, the luxury lingerie retailer has been sold to Four Holdings, a London-based fashion agency one-quarter owned by Sports Direct. Terms of the deal have not been disclosed, but the group is believed to have paid around £30 million for the lingerie business.

    Fresh support for Agent Provocateur


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  • U.S. Attorney General Jeff Sessions has announced he will recuse himself from any investigation into Russian influence on the U.S. presidential election.  The announcement came a day after the Washington Post reported Sessions failed to disclose in his confirmation hearing that he met with the Russian ambassador twice.  Sessions maintained that he was "honest and correct" in his answer, but should have mentioned the meeting with the ambassador

    A late Thursday report from The Wall Street Journal raised questions about the use of his campaign funds for the trip to Cleveland to attend the Republican National Convention and where he met with the Russian ambassador. The report cited a person at the convention and campaign finance records.

    Attorney general Jeff Sessions 

    In a news conference Thursday, Sessions said Justice Department staff recommended that he recuse himself from probes "in any way" related to Trump's campaign. Critics questioned whether Sessions could be impartial in investigations related not only to Trump's campaign but also the president's conduct more broadly, due to his role as an adviser to Trump's campaign.

    Democrats continued to call for Sessions to resign despite his recusal.  House Minority Leader Nancy Pelosi said his "narrow recusal and sorry attempt to explain away his perjury" were inadequate.  Senate Minority Leader Chuck Schumer called for the Department of Justice to appoint a special prosecutor to review the matter.

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  • The London Stock Exchange has reported a full year earnings per share figure of 42.6 pence on revenue of £1.52 billion.

    The pretax profit is £364 .1 million.
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  • On the Snap IPO, Sir Martin Sorrell says it is the infancy of a company and while much remains to be seen, Facebook's imitation is both flattering and telling.

    The copying of Snap that Facebook is doing is indicative of the markets share war that is taking place in the social media space.
     

    Sir Martin says the need for a third force in digital advertising is key as Google and Facebook are too dominant.
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  • Patrick Armstrong, CIO, Plurimi Investment Managers is on set and says everything is expensive.

    So Steve asks him bluntly: "Is the market heading for a crash?" 

    I don't think so. I'm actually very bullish on the global economy. I think if you look at ISM's, PMI's employment statistics, [you find they] are all pointing in the right direction.

    You get a crash with overvaluation in a slowing economy, you get a correction in a stronger economy.
     
     
     
     
     
     
    Armstrong's firm is currently short both stocks and bonds.

    On U.S. Federal Reserve policy, he says recent comments from Fed member Kaplan have changed his mind and he now expects a rate rise in March.

    Patrick Armstrong: "risk assets are
    overpriced"

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  • A reminder of our Friday morning headlines:

    • Advertising giant WPP sees a slow start to 2017, as sales rise just 1.5 percent in January. But CEO Sir Martin Sorrell tells CNBC he's bullish about President Trump's policies.
    • Investors snap up the tech IPO of the year, sending shares in Snap higher by over 40 percent on its opening day of trade, valuing the messaging app at nearly $30 billion.
    • But the rest of the US market is less perky. Major indices post their sharpest pull-back since January and European futures point lower as investors await more Fed clues from Janet Yellen later today.
    • 2016 profit rises at the London Stock Exchange, but the seemingly doomed deal with Deutsche Boerse casts a shadow on otherwise strong results from the LSE. 
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  • China's national people's congress opens on Sunday with over 3,000 officials descending on Beijing where the country's economic stability and tax reform will be among the key topics under discussion. 

    One key element is will be to hear what Chinese Premier Li Keqiang says about the annual growth target.

     
    On set,  Jonathan Fenby, the Chairman of the China Team at TS Lombard, says he expects a lower growth target but perhaps not until the end of the year NPC meeting.

    He says China will try to "bottom out" at around 6 percent annual GDP which is enough to provide the jobs needed within the country.

    Chinese Premier Li Keqiang

    Fenby says China has made it an administrative nightmare for families to move money out of the country, should they fear devaluation.

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  • A bit of a tease for those who are interested in the French election. And it does seem to be a market sensitive event.

    We will be speaking to Jean Messiha, Marine Le Pen's project coordinator, at 09:30 a.m. London time/ 10:30 a.m. European time. 


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  • WPP has admitted a slower Q4 2016 and slower start to 2017.

    The advertising group has reported a full year pre-tax profit of £1.89 billion. The firm has raised its dividend to 56.6 pence.

    On air, Sir Martin Sorrell, CEO of WPP says 2016  saw low growth and very little inflation. 

    Sir Martin Sorrell, CEO of WPP 

    He says clients at the minute have a particular focus on costs.

    It's a hand to hand combat at the moment [for corporates]. What they call in the NFL a ground game. Very little passing or hail Mary's.
     
     
    Sir Martin says Trump's policy mix is crucial for the world. 

    He says the U.S. is a $19 trillion economy while the world accounts for around $72 trillion.
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  • Investigators have raided the home of embattled French presidential candidate Francois Fillon, according to a report in 'Le Parisien' newspaper. The centre-right politician is under investigation for claims he paid his wife and children hundreds of thousands of euros for work they did not doFrancois Fillon denies the allegations and is pushing ahead with his campaign. 

    Our on-air guest Jonathan Fenby has written at length on French politics.

    Fenby says if under-fire Fillon drops out, then the former Prime Minister Alain Juppe could step in to the race.

    He says either of the two current favorites, Marine Le Pen and Emmanuel Macron, would represent a big change for French politics and forming of alliances could be hard to achieve.

    Fenby: Le Pen needs a low turn out 

    Marine Le Pen, the leader of the far-right 'Front National' party, is on course to win the first round of voting in the French election. That's according to the latest poll from IFOP.

    Fenby says Marine Le Pen would struggle to win a final run-off and her only hope is a very low turn out.
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  • European markets trading lower this morning across the board.


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  • Best and worst performers across Europe at the moment. Click or tap an arrow to see the worst. 

     
     

    1 of 2


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  • The London Stock Exchange says it is working hard on its proposed merger with Deutsche Boerse and is awaiting the outcome of a European Commission review by April 3rd. 

    The chief executive of the London Stock exchange, Xavier Rolet, has said this morning that if the deal founders "my retirement has been postponed".

    This as the exchange posted a rise in full-year profits and hiked its total dividend.


    On a selling-day on the FTSE open, the share reaction is muted.

    Can you spot the deal talk? 


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  • PSA Group could announce a deal to buy Opel from General Motors in the coming days. 

    This, according to a report from Reuters. 

    The two carmakers are working on an agreement over pension liabilities at GM's European division, a sticking point in the deal. 

    The PSA stock has opened mildly to the upside, outperforming the wider sell-off. The stock enjoying a mammoth rise in the last 3 months.


    Speaking to CNBC late last month, the CEO of PSA Carlos Tavares said it was too early to set out a time frame for the potential tie-up.

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  • French Geoscience firm CGG has posted a fourth-quarter loss of nearly $280 million dollars. Despite what it described as "difficult market conditions", the firm said it expected 2017 operating results to come in line with guidance. 

    After 21 minutes of trade, the stock still hasn't offered a print. Analysts talked to by Reuters are tipping a ten percent plunge in value.



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  • Stocks in Europe might be taking a pause today but since the election victory of Donald Trump we have seen a 12 percent rise in the average of larger European equities.  



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

    • Shares of advertising group WPP slide 6 percent after the firm says it sees a slow start to 2017. CEO Sir Martin Sorrell tells this program he's bullish about President Trump's policies in the year ahead. 
    • 2016 profit rises at the London Stock Exchange, but the seemingly doomed deal with Deutsche Boerse casts a shadow on otherwise solid results from the LSE. 
    • Investors snap up the tech IPO of the year, sending shares in Snap Inc higher by more than 40 percent on its opening day of trade, valuing the messaging app at nearly 30 billion dollars. 
    • A private email scandal. But this time in the Republican camp as it's revealed Vice President Mike Pence used his personal address to discuss state business.
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  • Switching briefly away from markets and politics, Roborace is pioneering the design and construction of autonomous race cars. 

    At the Mobile World Congress in Barcelona, the firm unveiled what it calls the world's first driverless electric car, the Robocar.

    The electric car is capable of 200 miles per hour (320 kph).

    Robocar: The world's first driverless electric racing car 

    The CEO of Roborace, Dennis Sverdlov, told Karen the car will last around 3 or 4 years and a new one costs around £1 million pounds to build.
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  • The Italian services PMI for February has risen to 54.1, the highest number since December 2015.

    The composite number has reached 54.8, bettering the 52.8 recorded in January.

    Any number above 50.0 indicates activity expansion.

    The French figure for February services PMI has come in at 56.4, just shy of forecasts but reaching a 5-and-a-half year high.

    January's French services PMI number was 54.1 and the composite number has risen to 55.9
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  • The German February services PMI figure has come in 54.4, equalling forecasts.

    The January figure was 53.4.

    Overall the euro zone composite PMI for February is 56.0, equalling forecasts.

    The euro/dollar pair has not moved much


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  • Earlier we highlighted that French Geoscience firm CGG has posted a fourth quarter loss of nearly 280 million dollars.

    After a long delay, shares in the firm eventually opened for trade are are currently down more than 11.5 percent.



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  • Despite yesterday's pullback -- the Dow is on pace for its fourth positive week in a row, while the S&P and NASDAQ are pointing to their sixth positive week in a row. 

    Steve Liesman has more on the market's climb and what it could mean for the Fed. Click or tap play for his analysis.

    by david.reid
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  • WPP says it has seen a "slow start" to 2017, after reporting like-for-like revenue up 1.5 percent for the month of January. The world's largest advertising group said it would plan for a more conservative budget for the year ahead.

    WPP CEO, Sir Martin Sorrell 


    Shares dropped around 6 percent after the European market open, which far and away exceeds the wider market sell off.

    The company's CEO, Sir Martin Sorrell, said he is optimistic about President Trump's economic agenda:

    Whatever you think about the personal side of the equation, some of the policies in relation to immigration, etc. his pro-biz, pro-growth agenda, if it gets implemented, is good for business. 

    "America First" will probably benefit the US economy. That's a $19 trillion engine out of $72 trillion of world GDP, that's good for the world economy. 

    I would expect the US growth rate to be greater than 2 percent which is sub-trend below where we were pre-Lehman, which was 3 percent. 
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  • UK services PMI data has fallen to a 5-month low.

    The February figure came in at 53.3 versus expectations of 54.1. The January number was 55.1

    Markit, who recorded the data, said services firms reported some signs of a consumer spending slowdown.

    Sterling dipping on that perceived miss.


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  • The chief business economist at IHS Markit that produces the U.K. PMI data is Chris Williamson. 

    He's tweeting some explanations to that February services PMI miss for the United Kingdom:


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  • The U.K. government has vowed to resist any changes to the UK government's Brexit Bill. 

    This show of defiance comes after the House of Lords voted in favor of an amendment guaranteeing the rights of EU nationals living in the UK after Brexit. Lawmakers will have the opportunity to remove the Lords' amendment when the bill returns to the House of Commons.

    Gina Miller, co-founder at SCM Private successfully challenged the government to ensure parliament is consulted before Theresa May triggered Brexit.


    On set with Louisa and Carolin she said she took on the challenge simply because no one else "seemed to be standing up."

    Miller says there is real danger that there is no scrutiny in the Brexit process and that the higher level of government takes decisions without a full democratic input.

    At the moment among certain politicians, it is really just bullying and blackmailing happening.
     
     
    Miller argues that the government White paper was "a disgrace" because of the lack of detail and that Prime Minister Theresa May isn't offering any clear vision of what Brexit really means..

    She' s sticking to a message but unpick the message and there is nothing there.
     
     



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  • One of the main organizers of Francois Fillon's presidential campaign has announced on Twitter that he is stepping down from the campaign.


    Francois Fillon has vowed to soldier on in the race despite learning he could face charges over payments of public cash to his wife for work that some say was never undertaken.
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  • The U.K. prime minister is speaking at the Scottish Conservative conference. 

    Apparently, without any sense of irony May has told the audience that independence from the rest of the United Kingdom would "wrench Scotland out of its biggest market".

    May has said no decisions currently taken by the Scottish parliament will be removed post-Brexit. 

    The Scottish government will interpret that as confirmation that no powers returning from Brussels, such as fisheries, agriculture etc, will be devolved to Edinburgh.

    This photo, posted on Twitter by the Scotland reporter for BuzzFeed, suggests it is not a sell-out event.

    Credit: Jamie Ross 

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  • Earlier, WPP CEO Sir Martin Sorrell outlined the revenue gap between Snapchat owner Snap Inc and rivals Google and Facebook

    He says Snap's success will simply be a case of wait and see. Click or tap play to hear a simple breakdown of the numbers.

    by david.reid
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  • Oil prices are up in session as a weaker dollar encouraged buying.
     

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  • U.S. equities paused Thursday after a record-setting rally Wednesday, while investors digested higher rate-hike expectations and Snap’s strong IPO.

    The futures are telling us that selling looks set to continue in Friday trade.

    Investors will shift their attention to Janet Yellen, as she is set to speak at 1 p.m. ET/ 6 p.m. London. 

    Market expectations for a rate hike are already through the roof, but there is chatter that Yellen may try and give herself some wiggle room just in case the jobs report on March 10 comes out weak.

    Friday U.S. data to watch (all times E.T.)
    0945 PMI Services Index
    1000 ISM Non-Mfg Index
    1015 Fed's Evans* & Lacker Speak
    1215 Fed's Powell Speaks
    1230 Fed's Fischer Speaks
    1300 Oil Rig Count
    1300 Yellen Speaks
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  • Irish provisional retail sales volume grew 2.2 percent month-on-month in January.
     
    Year-on-year, sales volume grew 4.9 percent.
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  • Snapchat owner Snap's stock market debut was a big success yesterday for the tech firm, with shares priced well above the IPO pricing of $17.
     
    Ben Plomion, CMO at GumGum, says the company's first day of trading proved the pessimists wrong.
     
    I wasn’t surprised and I’ve always been bullish on Snapchat’s IPO. Snapchat has every chance of enjoying the kind of growth Facebook experienced following its IPO and what will drive this is a trend impacting all digital media currently: the web, as we know it, is becoming increasingly visual and image dominated. Just take a look at Buzzfeed or Mashable to get a sense of how text-based media is gradually being relegated online in favour of image-based ones.
     
    And with literally billions of images uploaded almost every day, the opportunity for Snapchat, and for brands in general, is to use all this image-based data online to create new ways of connecting with customers and speaking to them in the digital language they increasingly understand: images. One technology that will be crucial in allowing Snapchat to do this is – image recognition, the visual branch of AI.
     
    Plomion says this type of software is allowing company to analyse images and videos in order to present relevant ads or offers to consumers. 
     
    Snapchat, with the massive volume of images and videos shared on its platform every day, is perfectly positioned to take advantage of this new approach to digital advertising and build a powerful and sustainable image-first ad model.
     
     
     
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  • Thomson Reuters has released its weekly scorecard on M&A activity around the world.
     
    • Worldwide M&A activity totals $478.2 billion, down 5 percent compared to YTD 2016
    • Telecom M&A hits $14.0 billion this year, down 31 percent compared to 2016
    • U.S. IPO activity totals $8.5 billion, up significantly from $420.8 million a year ago
    • U.S. Investment Grade debt hits $207.1 billion, up 14 percent compared to last year
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