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Mar 28, 2017

Five Things You Need to Know To Start Your Day | Bloomberg Markets - March 28, 2017

 by Lorcan Roche Kelly

Get caught up on what's moving markets.
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Trump moves to unwind climate change directives, political turmoil in South Africa set to worsen, and investors are over the health-care bill failure. Here are some of the things people in markets are talking about today.

Trump moves on

President Donald Trump is expected to sign an executive order today that will start the process of unwinding a raft of directives to combat climate change. The White House will rescind Obama's order to federal agencies to plan for climate change and another to have the military prepare for the national security implications. Investor attention remains on Trump's plans to cut taxes, but following the health-care bill misfire, optimism on their effectiveness seems to be waning.

Zuma hits rand

South African President Jacob Zuma told leaders of the country's Communist Party, and ANC ally, that he plans to fire Finance Minister Pravin Gordhan, according to people with knowledge of the matter. The news comes after the president ordered Gordhan to return home from an investor roadshow yesterday. The rand was trading at 12.962 to the dollar by 5:30 a.m. Eastern Time, down more than 4 percent so far this week.

Markets recover

Overnight, the MSCI Asia Pacific Index rose 0.7 percent while Japan's Topix index added 1.3 percent as the dollar regained ground against the yen. In Europe, the Stoxx 600 Index was 0.3 percent higher by 5:39 a.m. with miners leading the gains. U.S. futures point to a gain at the open as the dollar and Treasuries were little changed.

Brexit eve

Tomorrow U.K. Prime Minster will start the two-year process to negotiate the British exit from the European Union. Brexit Secretary David Davis said the country will have to pay "nothing like" the 50 billion-pound ($62 billion) sum floated by European Commission President Jean-Claude Juncker. Worries are emerging about the capability of the British civil service to successfully negotiate the exit agreement with head-count there at its lowest level since the 1940s.

Coming up...

For Fed-watchers, the big event today is Janet Yellen's speech at 12:50 p.m. on workforce development. Her colleagues at the central bank -- Esther George, Robert Kaplan and Jerome Powell -- are all also due to speak later. In economic data, February U.S. wholesale inventories numbers are due at 8:30 a.m., with March U.S. consumer confidence and Richmond Fed manufacturing both due at 10:00 a.m.

What we've been reading 

This is what's caught our eye over the last 24 hours.
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