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Stocks and gold rally ahead of US jobs report - business live Stocks and gold rally ahead of US jobs report - business live
(35 minutes later)
12.36pm GMT
12:36
Brazilian markets flying for second day as corruption scandal reaches near heart of ruling Workers' Party. Absolutely on fire.
12.27pm GMT
12:27
Brazilian markets leap after Lula detained
Demand for Brazilian assets is surging today, after former president Luiz Inácio Lula da Silva was detained by police.
Lula was dragged into the long-running corruption scandal that has gripped Brazil for months, when federal officers raided his house early this morning.
Our Latin America correspondent Jonathan Watts explains why the move is so important:
The detention of the influential Workers party politician – who is best known by his nickname Lula – marks a dramatic new phase of the Lava Jato (“carwash”) probe into bribery and kickback allegations involving the nation’s leading companies and dozens of congressmen.
It is likely to further add to the pressure on the government of president Dilma Rousseff, who is already struggling with an impeachment challenge, economic recession and the Zika epidemic.
More here: Brazilian police detain former president Lula in corruption inquiry
Investors are piling into Brazilian assets, anticipating political change. Brazil is currently suffering a deep recession, and rampant inflation.
The Brazilian real has already surged by over 2% against the US dollar, from 3.8 against the $1 to 3.7. The stock market is tipped to leap by 6% when trading begins.
Brazil real flying as former Prez Lula's house raided by police. Rumors Dilma will resign as early as this weekend.
CEO's resign and stock prices rise all the time but the BRL performance on the Lula arrest is some sublime price action
Updated
at 12.37pm GMT
11.41am GMT11.41am GMT
11:4111:41
Today’s flurry of optimism is also pushing copper to its highest level since mid-November, as Reuters reports:Today’s flurry of optimism is also pushing copper to its highest level since mid-November, as Reuters reports:
Copper prices rose to their highest in nearly four months on Friday, boosted by optimism about demand prospects and output cuts that will help the market move towards balance.Copper prices rose to their highest in nearly four months on Friday, boosted by optimism about demand prospects and output cuts that will help the market move towards balance.
Benchmark copper on the London Metal Exchange was up 1% at $4,905 a tonne at 1048 GMT, on course for its largest weekly gain since September last year.Benchmark copper on the London Metal Exchange was up 1% at $4,905 a tonne at 1048 GMT, on course for its largest weekly gain since September last year.
Copper earlier touched $4,933 a tonne, its highest since November 12.Copper earlier touched $4,933 a tonne, its highest since November 12.
UpdatedUpdated
at 11.52am GMTat 11.52am GMT
11.28am GMT11.28am GMT
11:2811:28
Iron ore has hit its highest level since last October this morning, continuing a recent rally.Iron ore has hit its highest level since last October this morning, continuing a recent rally.
Iron ore rally continues - price jumped 5% today to $53.75/ton a new 5-month high on @IronOreIndex pic.twitter.com/mTnh5DJs7BIron ore rally continues - price jumped 5% today to $53.75/ton a new 5-month high on @IronOreIndex pic.twitter.com/mTnh5DJs7B
Iron ore is benefitting from reports that China is cutting its steel sector and laying off millions of workers, in an attempt to cut oversupply.Iron ore is benefitting from reports that China is cutting its steel sector and laying off millions of workers, in an attempt to cut oversupply.
But traders should be cautious, given iron ore demand is so closely linked to China’s economic growth. Trimming supply doesn’t guarantee demand for steel, as the Wall Street Journal warned this week.But traders should be cautious, given iron ore demand is so closely linked to China’s economic growth. Trimming supply doesn’t guarantee demand for steel, as the Wall Street Journal warned this week.
11.18am GMT11.18am GMT
11:1811:18
Here’s our take on today’s car figures:Here’s our take on today’s car figures:
Related: UK car registrations highest since 2004Related: UK car registrations highest since 2004
11.09am GMT11.09am GMT
11:0911:09
It’s a bleak morning for workers at troubled UK high street chain BHS.It’s a bleak morning for workers at troubled UK high street chain BHS.
The company’s owners are planning to cut 350 jobs, and is also threatening to close half its stores unless landlords cut the rent.The company’s owners are planning to cut 350 jobs, and is also threatening to close half its stores unless landlords cut the rent.
The job cuts come a day after BHS filed for insolvency protection, as we reported yesterday. My colleague Graham Ruddick has the story:The job cuts come a day after BHS filed for insolvency protection, as we reported yesterday. My colleague Graham Ruddick has the story:
The retailer intends to make 220 people redundant in stores and 150 people in head office. Another 100 roles that had not been filled in BHS’s head office in recent months will also be scrapped, meaning its central operations will shrink by roughy a third.The retailer intends to make 220 people redundant in stores and 150 people in head office. Another 100 roles that had not been filled in BHS’s head office in recent months will also be scrapped, meaning its central operations will shrink by roughy a third.
BHS bosses briefed staff about the job losses and the turnaround plan on Friday morning.BHS bosses briefed staff about the job losses and the turnaround plan on Friday morning.
As well as the job cuts, BHS is threatening to close up to half its stores if landlords do not agree to reduce the rents. BHS has filed a company voluntary arrangement (CVA), a type of insolvency proceeding, in an attempt to cut its costs.As well as the job cuts, BHS is threatening to close up to half its stores if landlords do not agree to reduce the rents. BHS has filed a company voluntary arrangement (CVA), a type of insolvency proceeding, in an attempt to cut its costs.
Here’s the full story:Here’s the full story:
Related: BHS plans to make 350 redundant in head office and shopsRelated: BHS plans to make 350 redundant in head office and shops
10.57am GMT10.57am GMT
10:5710:57
Markets up thanks to 'crazy' change in moodMarkets up thanks to 'crazy' change in mood
The FTSE 100 is on track to close at a new 2016 high, although the US jobs report could yet change that.The FTSE 100 is on track to close at a new 2016 high, although the US jobs report could yet change that.
After three hours of trading, the blue chip index is up a steady 0.5% at 6161 points.After three hours of trading, the blue chip index is up a steady 0.5% at 6161 points.
Most other European indices are higher too, following Asia’s lead overnight, meaning global markets are still at a two-month high.Most other European indices are higher too, following Asia’s lead overnight, meaning global markets are still at a two-month high.
Ryan Myerberg, a portfolio manager at Janus Capital, says optimism has come pouring back into the markets recently.Ryan Myerberg, a portfolio manager at Janus Capital, says optimism has come pouring back into the markets recently.
He says (via Reuters):He says (via Reuters):
“We didn’t believe the ‘world is going to end’ story, but the way the mood has changed in the last couple of weeks is just crazy.”“We didn’t believe the ‘world is going to end’ story, but the way the mood has changed in the last couple of weeks is just crazy.”
Since the beginning of the year it has been like driving down the motorway where every couple of miles a tractor has overturned, whether that be China, oil, the banks, that you have to swerve around.”Since the beginning of the year it has been like driving down the motorway where every couple of miles a tractor has overturned, whether that be China, oil, the banks, that you have to swerve around.”
And this tweet shows how some emerging markets have led the rally in 2016, after a couple of challenging years.And this tweet shows how some emerging markets have led the rally in 2016, after a couple of challenging years.
#EmergingMarkets rebound, for now https://t.co/3b0FHesQIB pic.twitter.com/geaUOgQxXd#EmergingMarkets rebound, for now https://t.co/3b0FHesQIB pic.twitter.com/geaUOgQxXd
10.30am GMT10.30am GMT
10:3010:30
Gold hits 13-month highGold hits 13-month high
Money has been pouring back into gold this morning, driving the price of billion up to a 13-month high.Money has been pouring back into gold this morning, driving the price of billion up to a 13-month high.
Gold just hit $1274.50 an ounce, up 1% today, its highest point since February 2015.Gold just hit $1274.50 an ounce, up 1% today, its highest point since February 2015.
It’s surprising to see gold and shares both rallying. But it appears that gold is in demand from investors who are worried about negative interest rates, which have helped drive down the return on many safer assets.It’s surprising to see gold and shares both rallying. But it appears that gold is in demand from investors who are worried about negative interest rates, which have helped drive down the return on many safer assets.
There’s also a theory that Chinese demand for gold could jump if Beijing imposes capital controls, to prevent money leaving the country.There’s also a theory that Chinese demand for gold could jump if Beijing imposes capital controls, to prevent money leaving the country.
Gold enters first bull market since 2013 https://t.co/4wLibADpDs pic.twitter.com/jdLHYc97xhGold enters first bull market since 2013 https://t.co/4wLibADpDs pic.twitter.com/jdLHYc97xh
UpdatedUpdated
at 10.37am GMTat 10.37am GMT
10.20am GMT10.20am GMT
10:2010:20
The London Stock Exchange has shown by two rivals want to leap into bed with it, by posting a 31% jump in profits for the last year.The London Stock Exchange has shown by two rivals want to leap into bed with it, by posting a 31% jump in profits for the last year.
CEO Xavier Rolet remained loyal to the main suiter, Deutsche Börse.CEO Xavier Rolet remained loyal to the main suiter, Deutsche Börse.
He said the merger of equals proposed last week was “compelling opportunity” to create a dominant new global trading group.He said the merger of equals proposed last week was “compelling opportunity” to create a dominant new global trading group.
But the strong results may also encourage Intercontinental Exchange (ICE), which runs the New York stock exchange, to muscle in. It’s already considering its options.But the strong results may also encourage Intercontinental Exchange (ICE), which runs the New York stock exchange, to muscle in. It’s already considering its options.
Joshua Raymond, market analyst at online trading firm XTB.com, explains:Joshua Raymond, market analyst at online trading firm XTB.com, explains:
“It’s been a solid year for the LSE.“It’s been a solid year for the LSE.
The focus of course now is whether a rival bid emerges from ICE that could spark a bidding war, or if the firms major shareholders remain convinced a tie up with Deutsche Börse on the already announced conditions is the best way forward for the trading house.”The focus of course now is whether a rival bid emerges from ICE that could spark a bidding war, or if the firms major shareholders remain convinced a tie up with Deutsche Börse on the already announced conditions is the best way forward for the trading house.”
Related: London Stock Exchange backs Deutsche Börse merger as profits riseRelated: London Stock Exchange backs Deutsche Börse merger as profits rise
UpdatedUpdated
at 11.33am GMTat 11.33am GMT
9.41am GMT9.41am GMT
09:4109:41
Britain’s car industry has posted its strongest February sales growth in 12 years, despite another drop in demand for Volkswagen carsBritain’s car industry has posted its strongest February sales growth in 12 years, despite another drop in demand for Volkswagen cars
New figures from the SMMT show that the new car market grew by 8.4% year-on-year last month,New figures from the SMMT show that the new car market grew by 8.4% year-on-year last month,
Some 83,395 vehicles being registered, which is the best performance for a February since 2004:Some 83,395 vehicles being registered, which is the best performance for a February since 2004:
The figures also confirm that the emission scandal continues to hurt Volkswagen. Its car sales fell by 13% year on year, from 7,710 to 6,694.The figures also confirm that the emission scandal continues to hurt Volkswagen. Its car sales fell by 13% year on year, from 7,710 to 6,694.
9.24am GMT9.24am GMT
09:2409:24
Back to economics...and Italy’s statistics office has confirmed that the Italian economy grew by a measly 0.1% in the last three months of 2015.Back to economics...and Italy’s statistics office has confirmed that the Italian economy grew by a measly 0.1% in the last three months of 2015.
9.17am GMT9.17am GMT
09:1709:17
Facebook "to pay millions of pounds more in UK tax"Facebook "to pay millions of pounds more in UK tax"
Newsflash: Social networking giant Facebook is shaking up its corporate set-up, which should mean it pays rather more tax in the UK.Newsflash: Social networking giant Facebook is shaking up its corporate set-up, which should mean it pays rather more tax in the UK.
The move follows heavy criticism of US tech firms for using complicated corporate structures to cut their tax liability, apparently legally.The move follows heavy criticism of US tech firms for using complicated corporate structures to cut their tax liability, apparently legally.
The BBC’s business editor, Kamal Ahmed, has learned that Facebook will no longer route advertising sales to big UK clients through its Irish operation.The BBC’s business editor, Kamal Ahmed, has learned that Facebook will no longer route advertising sales to big UK clients through its Irish operation.
Breaking: Facebook to pay millions of pounds more in UK tax after abandoning large parts of controversial Irish tax structure, BBC revealsBreaking: Facebook to pay millions of pounds more in UK tax after abandoning large parts of controversial Irish tax structure, BBC reveals
He’s seen an internal memo, which explains that:He’s seen an internal memo, which explains that:
On Monday, we will start notifying large UK customers that from the start of April, they will receive invoices from Facebook UK and not Facebook Ireland,On Monday, we will start notifying large UK customers that from the start of April, they will receive invoices from Facebook UK and not Facebook Ireland,
What this means in practice is that UK sales made directly by our UK team will be booked in the UK, not Ireland. Facebook UK will then record the revenue from these sales.What this means in practice is that UK sales made directly by our UK team will be booked in the UK, not Ireland. Facebook UK will then record the revenue from these sales.
The move is expected to “provide transparency to Facebook’s operations in the UK”, the memo adds.The move is expected to “provide transparency to Facebook’s operations in the UK”, the memo adds.
Here’s the full story: Facebook to pay millions of pounds more in UK taxHere’s the full story: Facebook to pay millions of pounds more in UK tax
Last autumn, it emerged that Facebook UK has only paid £4,327 in UK corporation tax. It made revenues of £105m, but booked an accounting loss of £28.5m in Britain in 2014, after paying out more than £35m to its 362 staff in a share bonus scheme.Last autumn, it emerged that Facebook UK has only paid £4,327 in UK corporation tax. It made revenues of £105m, but booked an accounting loss of £28.5m in Britain in 2014, after paying out more than £35m to its 362 staff in a share bonus scheme.
UpdatedUpdated
at 9.32am GMTat 9.32am GMT
8.54am GMT8.54am GMT
08:5408:54
Advertising giant WPP has flagged up the EU referendum as a clear risk to growth prospects this year.Advertising giant WPP has flagged up the EU referendum as a clear risk to growth prospects this year.
WPP boss Sir Martin Sorrell warned against “Don Draper-ish” optimism, given the threats to confidence.WPP boss Sir Martin Sorrell warned against “Don Draper-ish” optimism, given the threats to confidence.
He cited the conflict in the Ukraine and the Middle East, and also the Brexit risk, telling the City that:He cited the conflict in the Ukraine and the Middle East, and also the Brexit risk, telling the City that:
“The somewhat surprising result of the UK general lection (at least to the pollsters), with the Conservatives winning an overall majority, has resulted in an uncertainty-stimulating EU referendum, now pegged for 23 June.”“The somewhat surprising result of the UK general lection (at least to the pollsters), with the Conservatives winning an overall majority, has resulted in an uncertainty-stimulating EU referendum, now pegged for 23 June.”
Shares in WPP are up 0.7% this morning, after it posted solid sales growth of 4.9% in the final quarter of the year.Shares in WPP are up 0.7% this morning, after it posted solid sales growth of 4.9% in the final quarter of the year.
Related: Sorrell warns ad industry against 'Don Draper-ish' optimism as EU vote loomsRelated: Sorrell warns ad industry against 'Don Draper-ish' optimism as EU vote looms
8.43am GMT8.43am GMT
08:4308:43
Mining shares are now at a four-month high, having rocketed by 25% this year:Mining shares are now at a four-month high, having rocketed by 25% this year:
Miners on a tear to end the week...gold enters bull market, as do Brazilian stocks pic.twitter.com/hkJ4gGeTNHMiners on a tear to end the week...gold enters bull market, as do Brazilian stocks pic.twitter.com/hkJ4gGeTNH
8.16am GMT8.16am GMT
08:1608:16
European stock markets are rising at the start of trading, as investors get ready for his afternoon’s US jobs data.European stock markets are rising at the start of trading, as investors get ready for his afternoon’s US jobs data.
In London, the FTSE 100 has gained 35 points, or 0.6%, to 6166 - which is nearly its highest level this year.In London, the FTSE 100 has gained 35 points, or 0.6%, to 6166 - which is nearly its highest level this year.
Mining companies are topping the biggest risers, indicating renewed confidence in economic prospects, particularly in emerging markets.Mining companies are topping the biggest risers, indicating renewed confidence in economic prospects, particularly in emerging markets.
Tony Cross of Trustnet Direct says:Tony Cross of Trustnet Direct says:
London’s FTSE-100 is making another pitch higher in early trade despite yesterday’s suggestions that the bulls may be running out of momentum.London’s FTSE-100 is making another pitch higher in early trade despite yesterday’s suggestions that the bulls may be running out of momentum.
Gains are broad based with natural resources stocks once again finding themselves at the top of the board with continued gains for underlying metals prices still lending support here.Gains are broad based with natural resources stocks once again finding themselves at the top of the board with continued gains for underlying metals prices still lending support here.
8.03am GMT8.03am GMT
08:0308:03
World markets at a two-month highWorld markets at a two-month high
After a very ropy start to 2016, world stock markets are now at a two-month highAfter a very ropy start to 2016, world stock markets are now at a two-month high
That’s according to the MSCI World Market index, which tracks shares in 46 different countries.That’s according to the MSCI World Market index, which tracks shares in 46 different countries.
As this chats shows, share prices are now back at early January levels, before the stock market turmoil began.As this chats shows, share prices are now back at early January levels, before the stock market turmoil began.
The recent rally suggests that investor panic over a global downturn was overdone.The recent rally suggests that investor panic over a global downturn was overdone.
Now, though, there is talk about whether the market is over-bought - particularly as this week’s manufacturing and service-sector data has been somewhat patchy.Now, though, there is talk about whether the market is over-bought - particularly as this week’s manufacturing and service-sector data has been somewhat patchy.
Chris Weston of IG explains why the rally could fizzle out:Chris Weston of IG explains why the rally could fizzle out:
There is an air of fatigue from the bulls in a number of developed equity markets, but they continue to grind higher....There is an air of fatigue from the bulls in a number of developed equity markets, but they continue to grind higher....
But the market is in need of some injection of new news to provide an injection of inspiration and cause a new leg higher. It seems unlikely this inspiration comes from today’s US payrolls.But the market is in need of some injection of new news to provide an injection of inspiration and cause a new leg higher. It seems unlikely this inspiration comes from today’s US payrolls.
7.51am GMT7.51am GMT
07:5107:51
Asian markets rise ahead of US jobs reportAsian markets rise ahead of US jobs report
Stock markets across Asia have rallied today as investors express optimism ahead of this afternoon’s America’s employment report.Stock markets across Asia have rallied today as investors express optimism ahead of this afternoon’s America’s employment report.
Over in Tokyo, the Nikkei gained 0.3%. That pushed the Japanese index to a one-month high, up over 5% this week.Over in Tokyo, the Nikkei gained 0.3%. That pushed the Japanese index to a one-month high, up over 5% this week.
Chinese traders showed some confidence too, pushing the Shanghai index up by 0.5%.Chinese traders showed some confidence too, pushing the Shanghai index up by 0.5%.
Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities, reckons that investors are less worried about the global economy.Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities, reckons that investors are less worried about the global economy.
They are also anticipating that the US Federal Reserve will be reluctant to raise borrowing costs this year, given recent turbulence.They are also anticipating that the US Federal Reserve will be reluctant to raise borrowing costs this year, given recent turbulence.
Fujito said (via Reuters):Fujito said (via Reuters):
Globally, markets are rolling back the extreme risk-off trading they did in January and February.Globally, markets are rolling back the extreme risk-off trading they did in January and February.
“Part of the reason is that the Fed seems to be easing its insistence on raising rates.”“Part of the reason is that the Fed seems to be easing its insistence on raising rates.”
#Japan's Nikkei ends up 0.3% at 17014.78, highest level since Feb4. pic.twitter.com/eAyQ8OfTuB#Japan's Nikkei ends up 0.3% at 17014.78, highest level since Feb4. pic.twitter.com/eAyQ8OfTuB
Shanghai Comp ends up 0.5% as #China's brokerages ease margin financing requirements ahead of party congress. pic.twitter.com/byoHawjON8Shanghai Comp ends up 0.5% as #China's brokerages ease margin financing requirements ahead of party congress. pic.twitter.com/byoHawjON8
UpdatedUpdated
at 7.56am GMTat 7.56am GMT
7.33am GMT7.33am GMT
07:3307:33
Introduction: It's US Jobs DayIntroduction: It's US Jobs Day
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, business and the eurozone.Good morning, and welcome to our rolling coverage of the world economy, the financial markets, business and the eurozone.
One more heave, chaps. After a heavy week for economic data, it’s the big one today - the US Non-Farm Payroll for February, which is due at 1.30pm GMT.One more heave, chaps. After a heavy week for economic data, it’s the big one today - the US Non-Farm Payroll for February, which is due at 1.30pm GMT.
The NFP will show how many new jobs were created across America’s economy last month, and also show whether wages picked up or not.The NFP will show how many new jobs were created across America’s economy last month, and also show whether wages picked up or not.
Although prone to later revisions, the Payroll is a crucial measure of the health of the US laboAlthough prone to later revisions, the Payroll is a crucial measure of the health of the US labo
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r market, at a time when worries over the global economy are pretty intense.r market, at a time when worries over the global economy are pretty intense.
Economists predict that 195,000 Americans got hired last month, leaving the unemployment rate at an eight-year low of 4.9%. Earnings are tipped to rise by 0.2% month-on-month, down from a chunky 0.5% rise in January.Economists predict that 195,000 Americans got hired last month, leaving the unemployment rate at an eight-year low of 4.9%. Earnings are tipped to rise by 0.2% month-on-month, down from a chunky 0.5% rise in January.
A surprisingly good, or bad, Payroll number could give the markets a shunt and renew concerns about a global recession.A surprisingly good, or bad, Payroll number could give the markets a shunt and renew concerns about a global recession.
But as things stand, shares are expected to rise in Europe in early trading, with the main indices called up around 0.5%.But as things stand, shares are expected to rise in Europe in early trading, with the main indices called up around 0.5%.
Our European opening calls:$FTSE 6155 up 25$DAX 9790 up 38$CAC 4435 up 19$IBEX 8809 up 42$MIB 18442 up 94Our European opening calls:$FTSE 6155 up 25$DAX 9790 up 38$CAC 4435 up 19$IBEX 8809 up 42$MIB 18442 up 94
Also coming up today....Also coming up today....
Japan’s central bank chief Haruhiko Kuroda has been testifying in Tokyo about monetary policy issues.Japan’s central bank chief Haruhiko Kuroda has been testifying in Tokyo about monetary policy issues.
At 9am,, we get the final estimate of Italian GDP for the last quarter. It will probably confirm that the economy grew by only 0.1%.At 9am,, we get the final estimate of Italian GDP for the last quarter. It will probably confirm that the economy grew by only 0.1%.
The latest UK car sales figures (for February) also land at 9am.The latest UK car sales figures (for February) also land at 9am.
And in the City, we’re getting results from London Stock Exchange Group (LSE) and advertising group WPP.And in the City, we’re getting results from London Stock Exchange Group (LSE) and advertising group WPP.
Traders will be looking for news about the LSE’s planned merger by Germany’s Deutsche Börse, which could bd disrupted by a counter-offer from America’s ICE.Traders will be looking for news about the LSE’s planned merger by Germany’s Deutsche Börse, which could bd disrupted by a counter-offer from America’s ICE.
#LSE makes no comment in its results about speculation of a counter bid from ICE#LSE makes no comment in its results about speculation of a counter bid from ICE
UpdatedUpdated
at 8.04am GMTat 8.04am GMT