29 Mins Ago
Oil price shock could push ECB into another hike: National Bank of Belgium head
Pierre Wunsch, governor of the National Bank of Belgium, discusses the latest inflation figures and the trends the ECB is monitoring.
An Hour Ago
Oil prices higher as IEA flags uncertainty
Oil prices were higher Thursday following a fall of over 2% on Wednesday as markets continued to assess the huge increase in volatility in the Middle East amid the Israel-Hamas war.
International benchmark ICE Brent Crude futures were up 0.93% to $86.62 a barrel at 9:23 a.m. in London, as WTI Crude futures rose 0.72% to $84.09 a barrel.
In its monthly report, the International Energy Agency on Thursday said oil markets would remain on edge over potential output disruption as the war persists.
It also said it “stands ready to act if necessary to ensure markets remain adequately supplied.”
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Brent crude futures.
2 Hours Ago
Europe stocks open higher
European stock markets opened higher Thursday, with the Stoxx 600 index up 0.6% at 8:10 a.m. London time.
Germany’s DAX gained 0.5%, while the U.K.’s FTSE 100 and France’s CAC 40 were both around 0.6% higher.
3 Hours Ago
UK economy posts narrow growth in August
Governor of the Bank of England Andrew Bailey attends the Monetary Policy Report press conference at the Bank of England, in London, on August 3, 2023. The Bank of England on Thursday hiked its key interest rate for a 14th time in a row, by a quarter-point to 5.25 percent as UK inflation stays high. Policymakers “will continue to monitor closely indications of persistent inflationary pressures”, the BoE said in a statement following a regular meeting. (Photo by Alastair Grant / POOL / AFP) (Photo by ALASTAIR GRANT/POOL/AFP via Getty Images)
Alastair Grant | Afp | Getty Images
The U.K. economy expanded 0.2% month-on-month in August, the Office for National Statistics estimated Thursday, as growth in the dominant services industry offset declines in production and construction output.The ONS also revised its reading for July lower, from 0.5% to 0.6% contraction.
It comes after the International Monetary Fund forecast the weakest economic growth for the U.K. of all Group of 7 nations. It sees 0.5% growth this year, versus 0.7% in the euro zone and 2.1% in the U.S.
Ruth Gregory, deputy chief U.K. economist at Capital Economics, said August growth was partially down to temporary factors and reiterated a call for the economy to contract 0.2% quarter-on-quarter in both the third and forth quarters, resulting in recession.
The GDP reading does not change the outlook for the Bank of England, according to Mathieu Savary, chief European strategist at BCA Research, and “confirms that the Bank Rate does not have much upside from here, but will remain at current levels for an extended period.”
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3 Hours Ago
Europe stocks head for higher open
6 Hours Ago
Exxon’s $60 billion deal to buy shale giant is ‘one for the record books,’ says analyst
Exxon Mobil’s acquisition of shale rival Pioneer Natural Resources is the largest oil and gas merger in a decade, and “one for the record books,” says Raymond James’ managing director and equity research analyst Pavel Molchanov.
On Wednesday, Exxon Mobil said it agreed to buy Pioneer Natural Resources for $59.5 billion in an all-stock deal, or $253 per share. The deal marks Exxon’s biggest since it bought Mobil, and is expected to close in the first half of 2024.
While it’s a “good deal” for Exxon from a historical valuation perspective, Molchanov noted that it’s important to also recognize that Exxon’s own stock has been trading at a much lower valuation than it used to.
Exxon estimated its production volume in the Permian Basin would more than double to 1.3 million barrels of oil equivalent per day.
“It’s no coincidence that the Permian is the focus of his deal,” said Molchanov, elaborating how it is the “most prolific and economically attractive basins.”
Pioneer shares were up 1.44% at the close, while Exxon’s slipped 3.58%.
—Lee Ying Shan, Fred Imbert
9 Hours Ago
CNBC Pro: Morgan Stanley says these 3 global stocks will be winners in a world where data is king
Data is set to play a big role in creating new products and services while boosting productivity, and three companies are well positioned to be “winners,” according to Morgan Stanley.
The banks’ analysts chose the stocks for offering structural mid-single-digit percentage growth, high and durable margins (with adjusted earnings before interest and taxes exceeding 25%), and high cash conversion with strong market positions.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
9 Hours Ago
CNBC Pro: Morningstar says the semiconductor sector is undervalued — and names 4 stocks to buy
Semiconductors are looking undervalued, thanks to the selloff in some parts of the sector, according to Morningstar.
The research firm said in a report released on Oct. 11 that it views semiconductor stocks as 15% undervalued on a median price or fair value estimate basis as of Oct. 3. That’s even more undervalued than the wider tech sector, which it believes is 5% undervalued.
It named its top stock picks in the sector.
CNBC Pro subscribers can read more here.
— Weizhen Tan
