U.S. jobs report, interest rate hike outlook
Oil rises as G-7 finance chiefs prepare to advance Russian oil price cap plan
Russia’s energy influence over Europe may be coming to an end
While the EU is on track to exceed targets for filling gas storage facilities, analysts warn that this alone will not be enough.
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According to energy and political analysts, Russia’s energy influence over Europe appears to be coming to an end, potentially mitigating the risk of further supply disruptions.
Europe has suffered in recent months from a sharp drop in gas exports from Russia, traditionally its largest energy supplier.
A bitter gas dispute between Brussels and Moscow following Russia’s invasion of Ukraine has heightened the risk of a recession and winter gas shortage. Moreover, many fear that Russia will soon completely turn off the taps.
Asked about the end of Russia’s energy influence over Europe, Agathe Demarais, global forecasting director at The Economist Intelligence Unit, told CNBC: “Yes. In fact, absolutely.”
“Europe is heading into a very difficult winter, probably two years of very difficult adjustment with a lot of economic difficulties. But then Europe will basically become more independent with a more diverse mix,” Demarais said.
“And what that means is that Russia’s energy weapon will become irrelevant,” she added.
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UK banks are paying staff one-off crisis payments. But they are invited to do much more
A view of the Canary Wharf financial district in London.
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Britain’s financial sector is urged to do more to help workers struggling with the cost of living crisis, despite a host of big banking names offering one-off payments to low-income earners.
Nationwide announced on August 15 a payment to more than 11,000 employees to help with the rising cost of living, such as Lloyds, Virgin Money and HSBC.
Other financial organizations are offering pay rises, including the NatWest Group, the Co-Operative Bank and Barclays.
Companies must continue to assess wages as inflation continues to put pressure on wages, according to labor rights group Unite the Union.
“We will soon start thinking and talking about pay rises to be given next year, and our assertions will certainly be that people should at least benefit from inflation,” said Dominic Hook, national officer of Unite . .
“We don’t want people to take a pay cut in real terms. They will need a pay raise, no doubt,” he said.
Read the full story here.
– Hannah Ward-Glenton
Stocks in motion: Bridgepoint up 8%, Berkeley Group down 5%
Shares of British private equity firm Bridgepoint gained 8.5% in early trades to top the Stoxx 600.
British property developer Berkeley Group fell 5% to the bottom of the index after HSBC downgraded the stock to “cut” from “hold” and lowered its target price.
Shell CEO set to step down next year – Reuters
Shell CEO Ben van Beurden is preparing to step down next year and the company has shortlisted four potential successors, Reuters 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 up around 23 points to 7,172, Germany’s DAX is expected to add around 18 points to 12,748 and France’s CAC 40 is expected to gain around 35 points to open at 6,069, according to IG data. .
CNBC Pro: Wall Street pros issue stock warning. Here’s what they say to buy instead
It’s time to get out of stocks, some analysts urged this week.
“We … now believe that the absolute return outlook for equities is downright unattractive in the months ahead,” Michael Strobaek, Global Chief Investment Officer at Credit Suisse, said in a note.
Here’s what the pros say to buy instead, including the “best asset to own” at this point in the investment cycle, according to Goldman Sachs.
Pro subscribers can read the story here.
CNBC Pro: These outperforming stocks could be safe bets right now
Market volatility is on the rise, as fears grow that raising interest rates further to fight inflation could come at the expense of economic growth. And there could be more pain to come as the stock market now enters what has traditionally been a period of “weak seasonality” for stocks.
But these low-volatility stocks have outperformed the market this year and could rise further, analysts say.
Pro subscribers can learn more here.
— Zavier Ong