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U.S. jobs report, interest rate hike outlook

Stocks open higher after strong August jobs report

Stocks jumped at the open on Friday, extending last-minute gains from the previous session after the August jobs report came in about as expected.

The Dow Jones Industrial Average jumped about 140 points, or 0.5%, while the S&P 500 and Nasdaq Composite added 0.6% each.

Major averages are still on track to post their third consecutive week of declines.

—Tanaya Macheel

G-7 finance ministers agree to cap Russian oil price

The initial Russian oil price cap will be set “at a level based on a range of technical inputs”.

Bloomberg | Bloomberg | Getty Images

The economic powers of the Group of Seven have agreed on a plan to implement a price cap mechanism on Russian oil exports. The policy is designed to empty the Kremlin’s war chest and better protect consumers from soaring energy prices.

Ahead of the announcement, Russia warned it would stop selling oil to countries that impose price caps on Russian energy exports and said imposing a cap on Russian crude would lead to significant destabilization. of the world oil market.

The G-7 is made up of the United States, Canada, France, Germany, Italy, the United Kingdom and Japan.

Read the full story here.

—Sam Meredith

Stocks in motion: Bridgestone up 13%, Sectra down 12%

By early afternoon, shares of British private equity firm Bridgepoint Group had risen 13% to top the Stoxx 600.

At the bottom of the index, Swedish medical technology company Sectra plunged 12% after its quarterly earnings report.

Time to cap Russian gas pipeline prices, says EU chief

European Commission President Ursula von der Leyen said the time had come for the bloc to impose a price cap on the Russian gas pipeline.

John Thys | AFP | Getty Images

European Commission President Ursula von der Leyen has said the 27-nation bloc must urgently establish a price cap on the Russian gas pipeline to Europe.

“I firmly believe that now is the time to cap prices on the Russian gas pipeline to Europe,” von der Leyen told reporters, according to Reuters.

It comes shortly after Belgian Energy Minister Tinne Van der Straeten warned that the next five to 10 winters in Europe will be “terrible” unless the EU acts quickly to impose a cap on prices on skyrocketing gas prices.

—Sam Meredith

Eurozone producer price growth picks up again

Industrial producer price growth in the 19-member eurozone reached an annual rate of 37.9% in July, up from 36% in June and ahead of consensus forecast of a 35.8% rise, according to new Eurostat data released on Friday.

Producer prices rose 4% month-on-month, a steep incline from June’s 1.3%, and likely signals a further rise in consumer price inflation as companies are struggling with soaring energy costs.

-Elliot Smith

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. Russia denies using the energy as a weapon.

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.

Read the full story here.

—Sam Meredith

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.

Prisma by Dukas | Universal Image Group | Getty Images

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.

—Weizhen Tan

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