Stocks shake off trade war fears as US job figures hit 'Goldilocks zone'

Stocks climb after wage growth slowdown eases rate rise fears
Wage growth in the US pulled back to 2.6pc
Surge in US pay sparked global sell-off last month
Job creation jumped to highest level in over three years
Industrial production rebounds tofastest pace since 2016
Reopening of Forties pipeline boosts monthly growth to 1.3pc
FTSE 100 dips despite Trump's promise to be flexible on tariffs
Bundesbank back in charge of ECB, sending shivers through Italy
Why the TPP has allure for US and post-Brexit Britain
Markets wrap: Stocks shake off trade war fears as US job figures hit 'Goldilocks zone'
Stocks shake off trade war fears as US job figures hit 'Goldilocks zone'

The Dow Jones jumped over 1pc in early trading
Markets ended another rollercoaster week back on a firmer footing after cooling wage growth in the US hinted that the turmoil that rocked markets last month may have been a storm in a teacup.
US pay surging ahead of economists expectations sparked last months global stocks sell-off after stoking fears that the Federal Reserve would have to accelerate the pace of itsrate rises to combat an uptick in inflation.
But the Bureau of Labor Statistics said wage growth eased back to 2.6pc last month in the US and revised down Januarys shock reading by 0.1 percentage point to 2.8pc.
Analysts said that wage growth easing and job creation soaringto its highest level in over three years put markets in a Goldilocks zone.
The Dow Jones climbed over 1pc in early trading in New Yorkwhile European stocks brushed aside Donald Trump following through on his trade tariff threats to nudge higher with the FTSE 100 rising 0.3pc.
Ofcom lays out plans to improve rural mobile services
Stocks shake off trade war fears as US job figures hit 'Goldilocks zone'

Telecoms watchdog Ofcom said that 'todays mobile devices receive far more data, but also require stronger signals than older phones'
The telecoms watchdog has set out plans to improve rural mobile services coverage, setting tougher requirements for operators bidding to provide services next year, as it continues its push to support next-generation 5G internet access.
Ofcom has launched a consultation aimed ataddressing the issue of particularly poor mobile coveragein rural areas.
The regulator plans to award the 700MHz spectrum band, which is mainly used for digital terrestrial television, to mobile services andan auction will be held for itin the latter half of 2019.
Read Ayesha Javed's full report here
BAE Systems poised to unveil long-awaited Saudi order of 48 Typhoon jets
Factfile | Typhoon jets
BAE Systems is set to announce thesale of 48 Typhoon jets to Saudi Arabia - securing thousands of jobs at the defence giant and its suppliers well into the next decade.
Company chiefs, Defence Secretary Gavin Williamson and officials from the Gulf state are expected to reveal a letter of intent for the ?10bn-plus deal to supply the multi-role aircraft at the end of a controversial trade mission by Saudi Arabia to the UK.
The agreement would be a long-awaited follow-on order for Typhoons after BAE sold 72 of the jets to the Saudi air force in 2007.
Read Alan Tovey's full report here
Slowdown in wage growth boosts US stocks
However you slice it, this is just an extraordinarily strong jobs report:
1. Huge payrolls growth
2. Positive revisions
3. Even bigger job growth in household survey.

Also, some growth in the workweek, which can suggest capacity constraints, but wage growth remains restrained Justin Wolfers (@JustinWolfers) March 9, 2018
An economy that can add 313,000 jobs without an appreciable acceleration in wage growth is nowhere close to full employment. This is why you have to try overshooting for once! Ryan Avent (@ryanavent) March 9, 2018
The slowdown in US wage growth has given stocks in New York the green light to climb higher on opening this afternoon with the Dow Jones advancing 0.7pc in early trading.
Cooling pay growth in the US "takes some of the pressure off" stocksbut the labour market continuing to tighten suggests that inflation fears will persist, arguedJames Ingram of MB Capital.
He added:

"Throw in a potential trade war between the US and the EU and the US economy could be headed for a perfect inflationary storm later this year.
"An interest rate rate hike in March from the US Fed must now be all but nailed on."
GVC warns of Ladbrokes closures if betting machine stakes are slashed
Stocks shake off trade war fears as US job figures hit 'Goldilocks zone'

Ladbrokes' acquirer GVC said betting shops would still likely be shut if stakes on controversial fixed odds betting terminals are slashed to ?2 from ?100 now
Online gambling firm GVC has warned it would not be able to prevent Ladbrokes Coral betting shops from closing if the Government drastically cuts stakes on controversial fixed odds betting terminals.
The gambling industry has warned of wide-spread betting shop closures if the Government decides to cut stakes on FOBT machines to ?2 from ?100 now. GVC was a purely online business but its purchase of Ladbrokes Coral means it now has exposure to the UK high street.
Chief executive Kenny Alexander said GVC had protected itself by structuring the deal so that it would pay between ?3.2bn and ?4bn for Ladbrokes depending on the outcome of the Government review.
Read Bradley Gerrard's full report here
Market's inflation concerns eased by cooling US wage growth
Disappointing US #wage growth, but we don't expect this to last. There's now barely one unemployed worker per vacancy, meaning it takes longer to fill posts and puts greater pressure on firms to lift pay ING Economics (@ING_Economics) March 9, 2018
Some fascinating figures have just landed in the US.
Wage growth cooled well below economists' expectations to 2.6pc in February, easing concerns that resurgent inflationin the US could force the Federal Reserve to accelerate the pace of its interest rate rises.
January's 2.9pc jump which was a key catalyst in the global sell-off last month was revised back down to 2.8pc.
The FTSE 100 has reversed its early losses and nudged 0.2pc higher following the releasewhile Dow Jones index futures have spiked, pointing toa 0.8pc rise at the opening bell at the bottom of the hour.
Was last month's turmoil on markets much ado about nothing?
GKN agree ?4.4bn deal to merge automotive business with Dana
BREAKING: GKN signs deal to sell automotive business to Dana ?4.4bn total value. Melrose approach getting more challenging Alan Tovey (@batsub1) March 9, 2018
GKN has struck a ?4.4bn deal to merge its automotive business with US firmDana, casting fresh doubt on Melrose's takeover attempt of the engineering giant.
Splitting up its aerospace and automotive divisions was a key pledge of boss Anne Steven's plan to fend off Melrose's advances.
Manufacturing breaks records as construction slumps
Stocks shake off trade war fears as US job figures hit 'Goldilocks zone'

Construction started the year with a sharp drop in output, official data shows
The construction sector started the year in recession as commercial building work slumped and private housebuilding slowed, while manufacturing has had itslongest run of growth since records began, official data has confirmed.
In January output fell sharply in the sector, dropping by 3.4pc compared to the previous month. That was the largest monthly fall in output since June 2012.
The Office for National Statistics (ONS) data was in line with other survey findings from the beginning of the year, which showed the construction sector hadreported its lowest rate of growth in four months.
Read Anna Isaac's full report here
UBS warns over lack of Brexit clarity with plans to shift UK operations
Stocks shake off trade war fears as US job figures hit 'Goldilocks zone'

Workman remove UBS's logo from the bank's old Broadgate offices in 2016
UBS has flagged the risks of the UK failing to secure a transition deal as it leavesthe European Union, with the Swiss investment bank saying it will shift operations out of the UK because of a lack of clarity about what Brexit will look like.
The bank used its annual report to say it will make potentially significant changes to its UK and European operations as a result of Brexit.
UBS currently employs about 5,000 people in Britain and in January as it presented its full-year results it said it would begin implementation of contingency measures in early 2018 in preparation for Brexit.
Read Alan Tovey's full report here
Manufacturing sector's winning streak the longest ever
UK industrial production = fastest pace since 2016 in January major rebound from the reopening of Forties oil and gas pipeline in the North Sea.
Production in mining/quarrying, which includes oil and gas, jumped 23.5pc. But monthly manufacturing growth slipped back to 0.1pc. Andrew Neil (@afneil) March 9, 2018
January's UK industrial production figures aren't as good as they first look; a clear slowdown in growth in manufacturing output can now be seen: Samuel Tombs (@samueltombs) March 9, 2018
The UK's buoyantmanufacturing sector extended its winning streak to a ninth consecutive month in January, its longest run of growth since records began in 1968.
However, EY ITEM Club's Howard Archer pointed out that the 0.1pc monthly rise was the smallest since last April and "only 5 out of 13 manufacturing sub-sectors saw an increase in output".
He added that the strong services sector should help GDP growth at least match the 0.4pc rise recorded in the final quarter of 2017.
Muted reaction to surge in industrial production
UK construction very much a case of house building vs everything else. House building output was up 2.8%q/q in the 3 months to January while things like factory and office building fell by more than 4%q/q. Rupert Seggins (@Rupert_Seggins) March 9, 2018
January's surge in industrial productionhas receiveda muted reaction on currency marketswith sterling treading wateragainst the dollar at $1.3816.
Economists are even less convinced bythe figures with Capital Economics' Paul Hollingsworth describing the heavily distorted figures as "disappointing".
Although industrial production rebounded stronglyfrom December's slump, growth over the two months was flat, he noted.
He explained:

"Indeed, the punchy 1.3% monthly rise in overall industrial production was mainly due to temporary distortions in particular, the unwinding of the drag from the closure of the Forties oil pipeline in December."
KFC reverts to original distributor after fiasco forced hundreds of store closures
Stocks shake off trade war fears as US job figures hit 'Goldilocks zone'

Hundreds of restaurants were forced to close
KFC has reappointedits former chicken distributorafter a botched delivery deal with DHL forced it to temporary close hundreds of restaurants last month.
Bidvest Logistics lost out as the contract was put out to tender last year but this week announced it had inked a long-term deal to supply 350 outlets in the north of the UK.
KFC had boasted the tie-up with DHL and its software provider QSL would deliver a new level of service when it was announced in November, while DHL claimed it would re-write the rule book.
Read Jack Torrance's full report here
Key takeaways Carillion's collapse and Forties Pipeline reopening distort production figures
UK production bounces back in January as expected given the closure and subsequent re-opening of the Forties pipeline. Manufacturing posted its 9th consecutive monthly rise, the first time this has happened since ONS records began in 1968. Rupert Seggins (@Rupert_Seggins) March 9, 2018
It's quite a noisy set of figures from the ONS this morning with the reopening of the Forties Pipeline in the North Sea and Carillion's collapsedistorting January'sdata. Let's take a quick look at the key takeaways:
Industrial production bounced back from December's slump, growing at its fastest pace since 2016.
Monthly production growth was boosted to 1.3pc after the Forties Pipeline in the North Sea reopened.
Monthly construction growth plunged 3.4pc,its lowest level in over five years asCarillion's collapse begins to hit the sector's figures.
The UK's trade deficit widened by ?3.4bn to ?8.7bn in January after a surge in car and aircraft imports.
British factories grow at fastest pace since 2016
Stocks shake off trade war fears as US job figures hit 'Goldilocks zone'

Monthly manufacturing production nudged down to 0.1pc
Growth in British factories surged to its fastest pace since 2016 in January after production rebounded from the reopeningof the crackedForties oil and gas pipeline in the North Sea.
Production in mining and quarrying, which includes oil and gas, jumped23.5pc due to the reopening but monthly manufacturing growth slipped back to 0.1pc. More to follow...
Traders sit on their hands ahead of wage growth figures
Stocks shake off trade war fears as US job figures hit 'Goldilocks zone'

Wage growth figures are back under the spotlight
Traders are sitting on their hands ahead of US wage growth figures this afternoon with the FTSE 100, CAC 40 and Euro Stoxx 50 all stuck in flat territory.
The release is "likely to be the primary driver of any significant move today" on markets, according to CMC Markets' Michael Hewson.
He added that if it held close to the 3pc mark "then speculation about the prospect of 4 US rate rises today is only likely to increase".
Forecastsexpect wage growth to nudge down 0.1 percentage point to 2.8pcbut economists underestimated January's surge, which sparked a global sell-off in stocks.
Satellite giant Inmarsat cuts dividend to fund in-flight Wi-Fi investment
Stocks shake off trade war fears as US job figures hit 'Goldilocks zone'

Inmarsat provides satellite services to airlines and other businesses
British satellite giant Inmarsat plans to slash its dividend to help fund its bet on providing in-flight wifi services.
The FTSE 250 firm charges airlines including British Airways owner IAG to use its network of satellites and ground-based stations to provide passengers with internet access.
The services popularity helped Inmarsats aviation division grow by more than third in 2017, driving up group revenues 5.4pc to $1.4bn (?1bn).
Read Jack Torrance's full report here
Agenda:Stocks slip despite Trump's promise to protect 'real friends' as investors eye wage data
Stocks shake off trade war fears as US job figures hit 'Goldilocks zone'

Markets are still under pressure despite Donald Trump vowing to be more flexible on tariffs
Markets are struggling for direction this morning after Donald Trump followedthrough on histhreat to impose steel and aluminium tariffs but promised to be flexible for the US's real friends.
European stocks nudged lower despiteMr Trumps softer rhetoric as attention on markets turns to key wage growth figures in the US.
A surge in pay packets in last months release sparked a global sell-off amid concerns that resurgent inflation would force the Federal Reserve to raise interest rates. Economists are expecting wage growth to nudge back down to 2.8pc in this afternoon's release.
Asia stock markets rallying after dovish ECB, optically soft Trump tariff announcement, & optically positive N Korea headlines. Yen slumped on news of an unprecedented summit between Trump & North Korea leader Kim AND Bank of Japan maintains stimulus. US jobs data now in focus. Holger Zschaepitz (@Schuldensuehner) March 9, 2018
It's also a busier day on the economics calendarin the UK with industrial production and construction output figures due this morning. Economists expect industrial production growth to rebound strongly from December'sfour-year low to jump 1.5pc.
Full-year results: Inmarsat, SIG
Economics: Trade balance (UK), Industrial production (UK), Construction output (UK), NIESR GDP estimate (UK), Labour statistics (US)



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