Stocks open higher after strong August jobs report
Shares rose at Friday’s open, extending gains from the closing minutes of the previous session after the August jobs report came in roughly as expected.
The Dow Jones Industrial Average rose about 140 points, or 0.5%, while the S&P 500 and Nasdaq Composite each gained 0.6%.
The major moving averages are still on track to post their third consecutive week of decline.
– Tanaya Macheel
G-7 finance ministers agree to cap Russian oil prices
The initial price cap for Russian oil will be “set at a level based on a range of technical inputs.”
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The group of seven economic powerhouses agreed on a plan to introduce a price cap mechanism on Russian oil exports. The policy is intended to drain the Kremlin’s war chest and better protect consumers in the face of rising energy prices.
Before the announcement, Russia warned it would stop selling oil to countries that impose price caps on Russian energy exports, saying imposing a cap on Russian crude would lead to major destabilization of the global oil market.
The G-7 consists of the USA, Canada, France, Germany, Italy, Great Britain and Japan.
Read the whole story here.
– Sam Meredith
Stocks on the move: Bridgestone up 13%, Sectra down 12%
In early afternoon trading, shares in British private equity firm Bridgepoint Group were up 13% to lead the Stoxx 600.
At the bottom of the index, Swedish medical technology company Sectra fell 12% after its earnings report.
Time is now for a price cap on Russian pipeline gas, says EU chief
European Commission President Ursula von der Leyen says now is the time for the bloc to set a price cap on Russian pipeline gas.
Johannes Thys | AFP | Getty Images
European Commission President Ursula von der Leyen says the bloc of 27 nations urgently needs to set a price cap on Russian pipeline gas flowing to Europe.
“I firmly believe that now is the time for a price cap on Russian pipeline gas to Europe,” von der Leyen told reporters, according to Portal.
It comes shortly after Belgium’s Energy Minister Tinne Van der Straeten warned that the next five to 10 winters will be “awful” in Europe unless the EU acts quickly to introduce a price cap on runaway gas prices.
– Sam Meredith
Producer price growth in the eurozone is accelerating again
Industrial producer price growth in the 19-member euro zone rose to 37.9% a year in July, up from 36% in June and ahead of consensus forecasts for a 35.8% rise, new Eurostat data showed on Friday .
Producer prices rose 4% mom, a sharp rise from June’s 1.3%, likely signaling a further rise in consumer price inflation as businesses grapple with rising energy costs.
-Elliot Smith
Oil is rising as G-7 finance chiefs reportedly want to push ahead with plan to cap Russia’s oil price
Russia’s energy hold on Europe may be coming to an end
While the EU is on track to surpass targets for filling gas storage facilities, analysts warn that alone will not be enough.
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Russia’s energy hold on Europe appears to be winding down, energy and policy analysts say, potentially mitigating the risk of further supply disruptions.
Europe has suffered a sharp drop in gas exports from Russia, its traditionally largest energy supplier, in recent months.
A bitter gas dispute between Brussels and Moscow following Russia’s invasion of Ukraine has heightened the risk of recession and winter gas shortages. In addition, many fear that Russia could soon turn off the taps completely. Russia denies using energy as a weapon.
Asked if Russia’s energy hold on Europe could be coming to an end, Agathe Demarais, global forecasting director at The Economist Intelligence Unit, told CNBC: “Yes. Actually very much.”
“Europe is heading for a very difficult winter, probably two years of very difficult adjustment with lots of economic pain. But then Europe will essentially become more independent with a more diversified mix,” said Demarais.
“And that means Russia’s energy weapon becomes obsolete,” she added.
Read the whole story here.
– Sam Meredith
Britain’s banks grant their employees one-off crisis payments. But they are being asked to do much more
A view of the financial district of Canary Wharf in London.
Prism by Dukas | Universal picture group | Getty Images
The UK financial sector is being urged to do more to help workers struggling to cope with the cost of living crisis, despite a number of top banks making one-off payments to low earners.
Nationwide on August 15 announced a payment to more than 11,000 employees to help with rising living costs, followed by Lloyds, Virgin Money and HSBC.
Other financial organizations are offering raises, including NatWest Group, Co-Operative Bank and Barclays.
According to workers’ rights group Unite the Union, companies must continue to assess salaries as inflation continues to put downward pressure on wages.
“We’re not going to long start thinking and talking about what raises should be given next year, and our demands will definitely be that people should at least get inflation,” said Dominic Hook, Unite’s national officer.
“We don’t want people to have a real pay cut. They’re going to need a raise, no question about it,” he said.
Read the whole story here.
– Hannah Ward-Glenton
Stocks on the move: Bridgepoint up 8%, Berkeley Group down 5%
Shares in British private equity firm Bridgepoint rose 8.5% on early deals to lead the Stoxx 600.
British real estate developer Berkeley Group fell 5% to the index low after HSBC downgraded the stock from hold to reduce and lowered its price target.
Shell CEO preparing to step down next year – Portal
Shell CEO Ben van Beurden is preparing to step down next year and the company has shortlisted four potential successors, Portal reported on Friday, citing two company sources.
The 64-year-old Dutchman has been at the helm of the oil major since January 2014, having joined the company in 1983.
Here are the opening calls
Britain’s FTSE 100 is seen around 23 points higher at 7,172 according to IG data, Germany’s DAX is expected to gain around 18 points to 12,748 and France’s CAC 40 is set to gain around 35 points to open at 6,069.
CNBC Pro: Wall Street pros issue warning on stocks Here’s what they say to buy instead
It’s time to get out of stocks, some analysts have been urging this week.
“We…now believe that the absolute return outlook for equities over the coming months is grossly unattractive,” said Michael Strobaek, Credit Suisse’s global chief investment officer, in a statement.
Here’s what the pros recommend buying instead, including the “best asset” at this stage of the investing cycle, according to Goldman Sachs.
Pro subscribers can read the story here.
— Wheat Tan
CNBC Pro: These outperforming stocks could be safe bets right now
Market volatility is increasing as concerns mount that further rate hikes to fight inflation could hurt economic growth. And there could be more pain to come as the stock market now enters what has traditionally been a “seasonally weak” period for stocks.
But these low-volatility stocks have outperformed the market this year and could continue to rise, according to analysts.
Pro subscribers can read more here.
– Zavier Ong