Oil rises as G-7 finance chiefs reportedly set 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 beat targets for filling gas storage facilities, analysts warn that this alone will not be enough.
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Russia’s energy influence over Europe appears to be coming to an end, energy and political analysts say, potentially alleviating the risk of further supply disruptions.
Europe in recent months has endured 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 exacerbated the risk of recession and a winter gas shortage. What’s more, many fear Russia could soon turn off the taps completely.
Asked whether Russia’s energy influence over Europe may be coming to an end, Agathe Demarais, global forecasting director at The Economist Intelligence Unit, told CNBC, “Yes. Actually, very much so.”
“Europe is heading towards a very difficult winter, probably two years of a very difficult adjustment with a lot of economic pain. But then Europe is essentially going to become more independent with a more diversified mix,” Demarais said.
“And what that means is that Russia’s energy weapon is going to become moot,” she added.
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— Sam Meredith
Britain’s banks are giving staff one-off crisis payments. But they’re being urged to do much more
A view of the Canary Wharf financial district of London.
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Britain’s financial sector is being urged to do more to help workers struggling with the cost-of-living crisis, despite a slew of top banking names providing one-off payments to low earners.
Nationwide announced on Aug. 15 a payment to more than 11,000 employees to help with the increasing cost of living, following the likes of Lloyds, Virgin Money and HSBC.
Other financial organizations are offering salary increases, including the NatWest Group, the Co-Operative Bank and Barclays.
Companies need to continue to assess salaries as inflation continues to put the pressure on wages, according to workers’ rights group Unite the Union.
“We’ll be not that long off from starting to think and talk about what pay rises should be given in the next year, and our claims will definitely be that people should be getting at least inflation,” Dominic Hook, Unite’s National Officer said.
“We don’t want people to have a real-terms cut in pay. They’re going to need an increase in pay, no question,” he said.
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– Hannah Ward-Glenton
Stocks on the move: Bridgepoint up 8%, Berkeley Group down 5%
Shares of British private equity firm Bridgepoint gained 8.5% in early deals to lead the Stoxx 600.
British property developer Berkeley Group fell 5% to the bottom of the index after HSBC downgraded the stock to “reduce” from “hold” and cut its target price.
Shell CEO preparing 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 around 23 points higher at 7,172, Germany’s DAX is expected to add around 18 points to 12,748 and France’s CAC 40 is set to gain around 35 points to open at 6,069, according to IG data.
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 urged this week.
“We … now believe the absolute return outlook for equities is outright unattractive in the coming months,” Credit Suisse’s Global Chief Investment Officer Michael Strobaek said in a note.
Here’s what the pros say to buy instead, including the “best asset to own” during this stage of the investment cycle, according to Goldman Sachs.
Pro subscribers can read the story here.
— Weizhen Tan
CNBC Pro: These outperforming stocks could be safe bets right now
Market volatility is on the rise, as fears mount that further interest hike rates to tackle inflation could come at the expense of economic growth. And there could be more pain ahead as the stock market now enters into what has traditionally been a “seasonally weak” period for equities.
But these low-volatility stocks have outperformed the market this year, and could have further upside ahead, according to analysts.
Pro subscribers can read more here.
— Zavier Ong
Source link: https://www.cnbc.com/2022/09/02/europe-markets-open-to-close-us-jobs-report-rate-hike-prospects-in-focus.html