G-7 finance ministers agree to impose Russian oil price cap
The initial price cap on Russian oil will be set “at a level based on a range of technical inputs.”
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The Group of Seven economic powers agreed on a plan to implement a price capping mechanism on Russian oil exports. The policy is designed to drain the Kremlin’s war chest and better protect consumers amid 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 the imposition of a limit on Russian crude would lead to the significant destabilization of the global oil market.
The G-7 is comprised of the U.S., Canada, France, Germany, Italy, the U.K. and Japan.
— Sam Meredith
Stocks on the move: Bridgestone up 13%, Sectra down 12%
The time is now for a price cap on Russian pipeline gas, EU chief says
European Commission President Ursula von der Leyen says the time is now for the bloc to impose a price cap on Russian pipeline gas.
John Thys | AFP | Getty Images
European Commission President Ursula von der Leyen says the 27-nation bloc must urgently establish a price cap on Russian pipeline gas flowing to Europe.
“I firmly believe that it is now time for a price cap on Russian pipeline gas 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 moved swiftly to impose a price cap on runaway gas prices.
— Sam Meredith
Euro zone producer price growth speeds up again
Industrial producer price growth across the 19-member euro zone rose to an annual 37.9% in July, up from 36% in June and ahead of consensus forecasts for a 35.8% climb, new data from Eurostat showed on Friday.
Producer prices were up 4% month-on-month, a sharp incline from June’s 1.3%, and likely signal further increases in consumer price inflation as businesses battle surging energy costs.
– Elliot Smith
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. Russia denies using energy as a weapon.
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.
— 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.
Prisma by Dukas | Universal Images Group | Getty Images
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.
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.
– Hannah Ward-Glenton
Stocks on the move: Bridgepoint up 8%, Berkeley Group down 5%
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
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.
— 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