World Markets Live - March 7 - CNBC Live Events

CNBC Live Events

World Markets Live - March 7

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

    Shares in Aggreko extend losses, now down 11.6 percent and on track for biggest one-day loss since August 2016:
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    Russian Foreign Ministry says deployment of U.S. missile defence system in South Korea is putting situation in Korean Peninsula into stalemate. That's according to Reuters citing Interfax.
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    Lamborghini has fully unveiled its Huracan Performante in Geneva -- the car that recently broke the lap record at Germany's famed Nürburgring circuit.
    Stefano Domenicali, CEO of Lamborghini, says the company's first market remains the U.S. and that the car is aimed at a younger audience.
    The most important element that we need to tell is our customers are quite young. We have a younger base, from 30 to 45 years old, all very attracted by this emotion that these kinds of cars can give to them.
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    Carl Tannenbaum, chief economist at Northern Trust, says the car market will need to figure out how to deal with a market where many younger consumers have no interest in owning a vehicle.
    The millennials, who now at least in the U.S. are the biggest generation, sort themselves into two categories. The half that’s doing well want to live in urban areas, they’re happy to get around on a bicycle or public transportation. It’s expensive to keep a car that you don’t use that often.
    But then there’s another class of millennials who are getting a slow start to their careers. We see this in a lot of different countries with underemployment of people under 30 years old. They’re not in a position to think about buying a car, no matter how generous the financing.
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    Exxon Mobil has announced plans to invest 20 billion dollars in U.S. gulf refining projects. Speaking at CERA Week, the CEO of the world' largest publicly traded oil producer said the investment would create around 47 thousand jobs. CNBC's Jackie Deangelis has more from the energy conference

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    Francois Fillon has received Republican party backing after Alain Juppe ruled himself firmly out of the race. Party chief Bernard Accoyer said that the conservatives were re-launcing Fillon's campaign.
    The 63-year old, once the election frontrunner, is now expected to lose out in in the first round according to opinion polls. 
    Meanwhile, Emmanuel Macron has closed the gap with far right leader Marine Le Pen, according to an Ifop Fiducial poll. While the poll expects Le Pen to win the first round with just over 26 percent of the vote, she is expected to be beaten by Macron in the second round runoff.
    The centrist independent is expected to achieve 61 percent in the second round versus Le Pen's expected 39 percent. 
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    Sterling hit a seven-week low against the dollar, ahead of a second vote in Britain's upper house of parliament on legislation that will trigger the country's exit talks with the European Union.
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    These are the top stories this hour.
    • European stocks fail to break into the green at the open after German industrial orders suffer their sharpest decline in 8 years.
    • The CEO of PSA tells CNBC he can turn Opel around as shares in the French carmaker enjoy a second day of gains.
    • Oil oscillates as producing nations say it’s too soon to tell if an output deal should be extended.
    • Investors gobble up Just Eat, sending the take-away firm to the top of the Stoxx 600 after earnings rise 93 percent.
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    Subdued trade in Europe this morning. The Stoxx 600 is currently flat.
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    Europe's first major motor show of the year is underway in Geneva and automakers are taking the wraps off their latest models.
    BMW has launched its 5 Series Touring, Volkswagen has unveiled its driverless concept car, Sedric, and Aston Martin will reveal its newest hypercar, the Valkyrie.
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    President Trump's proposed border adjustment tax could have a big impact on car prices, and a recent study showed that Volvo would be the most exposed to price hikes if import taxes rise. Speaking to CEOs at the Geneva Motor Show, Nancy asked how the tax would impact their business.

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    French telecoms group Iliad posted a 20 percent increase in full-year profit for 2016. Revenues for the period were up 7 percent. 
    Iliad said it had a record rollout of its ultra-fast network with 310,000 subscribers by the end of 2016.
    Shares jumped on the earnings report. Over 30 days, shares are up 4.06 percent.
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    German residential real-estate company Vonovia has posted 2016 net profit of 2-.3 billion euros, shy of analyst estimates.
    The company is proposing a dividend of 1 euro 12 cents a share. Shares are up today.
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    Lindt expects sales to grow by 6 percent in 2017.
    Net profit for the group rose 10 percent in 2016 to 420 million Swiss Francs, boosted by the Swiss chocolate maker's lower tax rate.
    And, as global chocolate demand edges down, Lindt bucks the trend by marketing its Easter bunnies and Lindor chocolate balls as high quality treats. 
    Despite this, shares are down nearly 1 percent today. Over 12 months, shares are down 2.45 percent.
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    French utility goup EDF has announced the launch of a 4 billion euro rights issue to help boost its balance sheet.  
    The French government said it would inject 3 billion euros as part of the sale. 
    Shares are higher today.Over 3 months they are down 7.47 percent.
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    Paddy Power Betfair says it saw no impact from Brexit so far and plans to open more stores in 2017.
    The bookmaker reported full year earnings for 2016 that were boosted by its sportsbook betting business.
    However, shares are sharply lower today. Over 7 days, the shares are down nearly 2 percent.
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    Shares of Snap finished more than 12 percent lower in its third session, falling below the company's IPO price for the first time.

    This after several firms, including Morningstar and Nomura Instinet, started their coverage of the company with a "sell" rating on the stock. 
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    British consumers are cutting back on spending as rising inflation pushes up the cost of essential goods and services. That's according to research by the British Retail Consortium, which finds that U.K. non-food sales fell 0.2 percent in the three months to February. 
    This is the first annual sales decline since 2011. By contrast, the value of food sales rose for a third straight month.  
    Meanwhile, U.K. Chancellor Philip Hammond will deliver his first budget tomorrow - just weeks before Prime Minister Theresa May triggers Article 50 and begins Britain's EU divorce. 

    Hammond is expected to take a cautious approach to spending after he said he wanted to make sure the U.K. had "enough in the tank" for Brexit.
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    Daimler is extending its drive into electric vehicles.
    Speaking to Nancy at the Geneva Motor Show, the Chairman, Dr Dieter Zetsche, said he is confident of Mercedes holding on to its crown as the number 1 luxury car maker.
    We have grown by 15 percent in China, 40 percent over last year, Europe 10 percent over last year, so we are very strong and we have no reason to believe that our momentum would slow down. 
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    Sterling hit 6-week lows against the dollar and the euro today.
    The U.K. currency has dropped on concerns about British consumers cutting back on spending. A second vote in the U.K.'s House of Lords concerning Article 50 is also causing market jitters.
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    CNBC's Nancy spoke to Renault Nissan CEO Carlos Ghosn about how his company will react if the U.S. implements a border tax.
    We are used to dealing with different countries with political change, agreement changes, and this is not an exception.
    We’re not going to act on speculation about what’s going to happen because there are so many possibilities. We will react when the decision is made. We will have to adjust our supply chain in consequence of the potential decision made by the administration.
    I’m not so worried because frankly I think NAFTA is so much in the interest of all the parties. 
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    Looking ahead to the U.S., stock market futures indicate a move to the downside at the open. The markets declined yesterday.
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    Republicans have unveiled the long-awaited legislation to dismantle Obamacare. They are calling for the end of health insurance mandates, and to roll back extra healthcare funding for the poor. The proposals drew immediate fire from Democrats. It's unclear where President Trump stands on the details of the proposal and the fate of the plan is uncertain.
    Meanwhile, Donald Trump signed a revised executive order banning citizens from six Muslim-majority nations from travelling to the the United States. He removed Iraq from the list after his controversial first attempt was blocked in courts. NBC's Peter Alexander has more.
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    The Iraqi army has received a timely boost in Mosul in its fight against ISIS, after retaking the main goverment buildings. Elite security forces stormed the complexes in the Nineveh Governorate overnight, in a raid that lasted about an hour, according to military officials.
    The city's major museum, which was looted and damaged by the militant group, was also recaptured. The gains are expected to provide a strong platform for beginning the more difficult task of removing ISIS from Mosul's more densely populated old city.  
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    Oil prices are inching higher today.
    Robert Crayfourd, fund manager at New City Investment Managers, speaking live on air says things are going to be difficult for OPEC as a result of rising U.S. shale production.
    They are heading up into their May 25th meeting and they are going to be looking at themselves handing share to the U.S., so it’s going to be very difficult.
    We’re actually seeing increasing efficiency coming out of the U.S. and we’re not seeing that cost inflation that many had expected that could weigh on U.S. production.
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    Eurozone 4Q GDP confirmed at 0.4 percent quarter on quarter and 1.7 percent year on year, according to Eurostat and reported by Reuters.
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    Healthcare stocks will be in focus in the U.S. later today. The GOP has unveiled its Obamacare replacement bill. They are calling for the end of health insurance mandates, and to roll back extra healthcare funding for the poor. The proposals drew immediate fire from Democrats.
    The healthcare sector of the S&P 500 closed lower yesterday at 0.44 percent. Over 3 months the sector is up more than 10 percent.
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    Sterling is below $1.22 today for the first time since January 17. The U.K. currency has slipped today on falling retail sales and concerns about a second vote in the U.K. House of Lords, the upper house of parliament, on Brexit legislation.
    The Lords are expected to try and push through amendments forcing Theresa May's government to give lawmakers more say over Britain's exit from the European Union.
    Delays on passing the legislation will prevent the government triggering Article 50 to begin exit talks with the EU.
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    The CEO of Lindt says he expected the premium chocolate market to continue to grow in the U.S.
    He expects the environment in 2017 to be similar to last year, and sees a healthy level of orders for Easter, Reuters reports.
    The Swiss chocolate maker reported net profit for the group rose 10 percent in 2016 to 420 million Swiss Francs.
    Shares are down 0.8 percent today.
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    The Stoxx 600 is flat today, down just 3 basis points. Here's a look at the individual major European bourses, where the picture is a little more varied.
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    French carmaker PSA Group continues to enjoy gains after yesterday's news it has acquired Opel and Vauxhall from GM.
    Shares are up 1 percent today.
    Speaking to the CNBC, the CEO of the company expects it can show Opel how to make a turnaround. Opel has been in decline for several years.
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    The CEO of Fiat Chrysler says the success of the PSA-Opel deal could trigger other deals in Europe and that it bodes well for pricing in the region, Reuters reports.
    The CEO says he could approach GM again regarding a tie-up if the company decides that's the right thing to do.
    However, he said he will not sell any of the carmaker's brands to a rival during his tenure as CEO.
    Shares in the company are up around half a percent today.
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    Eurozone 4th quarter GDP was confirmed at 0.4 percent quarter-on-quarter and 1.7 percent year-on-year earlier today.
    That's a similar pace as Q3 and in line with estimates, according to Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics.
    Domestic demand grew in the last quarter, while net exports fell marginally. Investment, consumer spending and government spending all rose and inventories provided a small boost to growth.
    Overall, we agree with the idea of a rebound in domestic demand, but we struggle with the dip in net exports. Risks are tilted to an upside revision, and a higher headline growth rate, but we won’t know until next quarter.
    Survey data suggest that GDP growth will accelerate in Q1, but the hard data so far suggest this forecast is too upbeat. We worry about the hit to consumers’ spending from weak real wage growth, but investment should continue to perform well. 
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    James Liu, from Clearnomics, says the broader market looks very expensive.  He says the opportunities in the U.S. markets are in financials and consumer spending.
    Markets aren’t properly pricing in the amount of risk out there right now.

    U.S. markets are down in three of the last five sessions. Stock market futures point to a negative open.
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    The latest Opinionway polls show Marine Le pen winning the first round of the French presidential elections with 26 percent of the vote, 1 percentage point ahead of Macron.
    The polling data shows Macron beating Le Pen in the second round 60 percent to 40 percent.
    Francois Fillon is also seen beating Le Pen by 58 percent to 42 percent, if Fillon makes it through to the second round.
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    E.ON's U.K. business has announced an 8.8 percent hike to dual-fuel prices, starting April 26th.
    The German utility firm announced it was investing in fuel cell tech company Elcore. The share price is down today.
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    The Stoxx 600 is down 0.11 percent today. Here's a look at the stocks at the top and bottom ends of the pan-European index.
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    The war of words between North Korea and the U.S. continues today.
    In Geneva, a North Korean diplomat told the U.N. disarmament body that the "massive, unprecedented" U.S.-South Korean military exercise is a "major cause of escalation of tension" in the region, that could lead to war.
    They added that the exercises are designed to conduct a "pre-emptive nuclear attack" against North Korea, Reuters reports.
    In response, a U.S. disarmament ambassador called North Korea a pariah and an outlier that is violating multiple security council resolutions.
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    Gold prices slipped lower again today. Prices for the precious metal are at 3-week lows due to expectations of a Federal Reserve rate hike this month.
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    European markets are mixed today, with the Stoxx 600 turning a little lower. Investors digested disappointing German manufacturing data. Fourth quarter GDP data came in unrevised at 0.4 percent quarter on quarter.
    The OECD predicts the euro area to growth at 1.6 percent in 2017.
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    Germany's two-year government bond yield hit a near 1-week low today of minus 0.88 percent, down 6 basis points, before paring back.
    German manufacturing data disappointed investors earlier today.
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    Sergio Marchionne, Fiat Chrysler CEO, shares his views on the proposed U.S. border tax.
    There’s a broader discussion that needs to be had with the administration and ultimately with the president about what the potential impact is of this border tax scheme on a business like ours and the impact on ultimate pricing.
    He says it’s possible that such a tax would not impact prices to consumers if the corporate tax rate is dropped, but businesses need to see more detail.
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    Sergio Marchionne, Fiat Chrysler CEO, says General Motors may have thrown the baby out with the bathwater by selling Opel to PSA.
    He says the benefit to PSA from the deal is not extraordinary but it’s not bad.
    He added that VW’s Muller has had a tough year. He says they’ve done a good job managing their brands.
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    Fiat Chrysler CEO Sergio Marchionne has suggested policies coming from the White House are making life easier for corporations like his.

    by david.reid
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    FXTM Research Analyst Lukman Otunuga comments on sterling slipping below $1.220:
    Sterling descended to a seven-week low below 1.2200 during Tuesday’s trading session as the Brexit anxieties haunted attraction towards the currency. Investors seem edgy ahead of a second vote to Britain’s upper house of parliament on granting Prime Minister Theresa May the power to trigger the formal Brexit negotiations. Sterling weakness could be a recurrent theme moving forward with the buying sentiment towards the currency remaining frighteningly low ahead of the Article 50 invoke.
    The Sterling/Dollar has found itself under increased selling pressure on the daily charts with the breakdown below 1.2200 opening a path lower towards 1.2100.

    Here is the latest picture on cable.

    by Spriha Srivastava edited by david.reid 3/7/2017 12:41:08 PM
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