European stocks open to close; Markets brace for more Fed rate action

Rheinmetall tops European stocks with 9.6% gain

German company for the manufacture of cars and weapons Rheinmetall It rose 9.6% late in the morning, leading to broad gains for defense companies after Russian President Vladimir Putin announced a partial military mobilization, in an apparent escalation of tensions in the war in Ukraine.

Rheinmetall shares have been rising steadily since Monday after news of it winning an order for vehicles for the German armed forces.

Rheinmetall has been contracted to provide 48 fuel tank trucks for use at German Army and Air Force airfields.

– Hannah Ward Glinton

The CEO said that Qatar Airways will continue to operate flights to Russia

Qatar Airways CEO: The biggest challenge to aviation is political turmoil

Qatar Airways CEO Akbar Al Baker said on Wednesday that the airlines will continue their flights to Russia as long as it is operationally safe.

“We will continue to fly to Russia and we will continue to serve the people,” Hadley Gamble said on CNBC on Wednesday. “We are not a political institution. We are an industry that serves the general public.”

The CEO said China’s policies on the Covid virus are his “smallest concern”, especially in contrast to the prospect of an escalation of the Ukraine-Russia war, which he said could fuel inflation and reduce the number of “passengers on planes”.

“Like every other airline still operating in Russia, we will continue to operate in Russia, as long as our operation in Russia will be safe,” he said.

– Lee Ying Shan

Oil prices rise after Putin announces partial military mobilization

The Bank of England faces a pivotal policy decision on Thursday, with the pound hitting multi-decade lows

Bank of England Governor Andrew Bailey said the independence of the central bank is “very important”.

Bloomberg | Bloomberg | Getty Images

The Bank of EnglandThe Committee’s Monetary Policy Committee will announce its latest decision on Thursday, with analysts divided on whether they expect to raise interest rates by 50 or 75 basis points.

The bank faces a critical choice as it deals with the currency depreciation and the effects of a new government energy cost package that has changed inflation expectations.

The bank rose 50 basis points last month, its largest single increase since 1995, but some analysts believe it will need to up its ante and keep pace with its global peers to prevent a currency capitulation.

The fairy It fell to $1.1340 on Wednesday morning, the lowest level since 1985.

Read more here.

– Elliot Smith

Stocks on the move: Fortum up 9%, Uniper 34% after nationalization deal

Finland shares Fortum It rose more than 9% in the early afternoon, after the company agreed to sell its 56% stake in the beleaguered German facilities. Uniper The German government in a nationalization deal. Uniper shares fell more than 34% in Frankfurt.

At the bottom of the Stoxx 600, Games Workshop Shares tumbled more than 9% after the British maneuvering firm released a trading update.

Putin announces partial military mobilization

Russian President Vladimir Putin speaks during a ceremony to receive letters of credit from newly appointed foreign ambassadors at the Kremlin in Moscow, Russia, September 20, 2022.

Pavel Bednyakov | Sputnik | Reuters

Russian President Vladimir Putin on Wednesday announced a partial military mobilization in Russia, putting its people and economy at war as Moscow’s invasion of Ukraine continues.

In a rare pre-recorded televised ad, Putin said the West “wanted to destroy our country” and claimed the West had tried to “turn the people of Ukraine into cannon fodder” in comments translated by Reuters.

Putin said “mobilization events” would begin Wednesday without providing further details, apart from saying he had ordered increased funding to boost Russia’s arms production.

Read more here.

– Holly Eliat

Germany nationalizes energy giant Uniper as Russia cuts gas supplies

Uniper has received billions of dollars in financial aid from the German government as a result of rising gas and electricity prices in the wake of the Russian war in Ukraine.

Photo Alliance | Photo Alliance | Getty Images

The German government on Wednesday agreed to nationalize Uniper, as it strives to keep the industry afloat in the wake of the global energy crisis.

Having already agreed in July to bail out the largest gas importer with a 15 billion euro ($14.95 billion) bailout deal, the country will now buy a 56% stake in Finnish Fortum for 0.5 billion euros. The German state is set to own about 98.5% of Uniper.

“Since the agreement on Uniper’s stabilization package in July, Uniper’s situation has rapidly and significantly deteriorated; as such, new measures have been agreed to resolve the situation,” Fortum announced in a statement Wednesday morning.

Read more here.

Elliot Smith

Oil prices rise as investors prepare for more Fed rate hike

Oil prices rose slightly after falling in previous trading on Wednesday before an expected interest rate hike by the Federal Reserve.

Brent crude futures contracts While it rose 0.23% to stand at $90.83 a barrel West Texas Intermediate US It also rose 0.17% to $84.10 a barrel.

“The US Energy Information Administration expects oil production in the seven major US oil and gas basins to rise modestly in September,” Vivek Dar, an analyst at Commonwealth Bank of Australia wrote in a note.

– Lee Ying Shan

CNBC Pro: FedEx warned of a bleak outlook — should investors be concerned?

Dim FedEx preliminary earnings and revised forecasts sent stocks tumbling last week, but is it as bad as it sounds?

CNBC Pro asked investment experts who have thought about what the announcement would mean for the global economy and for investors.

Professional subscribers can Read more here.

– Xavier Ong

European companies are rethinking their plans for China

European companies in China Increasingly faced with an environment in which “ideology trumps economics”, The European Union Chamber of Commerce in China said in its annual position paper released on Wednesday.

Jörg Woetke, head of the business group, said this year’s Covid controls have turned China into a “closed” and “obviously different” country that may prompt companies to leave.

Earlier this month, Chinese President Xi Jinping said the country “continues to respond to Covid-19 and promote economic and social development in a well-coordinated manner,” according to a paraphrase of his remarks shared by China’s Foreign Ministry.

– Evelyn Cheng

CNBC Pro: Want to play in the electric car sector? Analysts say this lithium stock could rise 70%

With interest in battery stocks growing after a difficult year so far, CNBC Pro analyzed a number of stocks in the sector that analysts say have serious potential.

CNBC Pro checked a file Global X Lithium & Battery Tech ETF On FactSet for stocks that can be outperformed. One stock on the list has jumped more than 40% this year so far, and analysts say the upside is more than 70%.

CNBC Pro subscribers can read more here.

– Weezin Tan

European markets: here are the opening calls

European shares are expected to open their doors in negative territory on Wednesday as investors react to the latest US inflation data.

The UK FTSE is expected to fall 47 points at 7341, the German DAX 86 is down at 13106, the French CAC 40 is down 28 points, and the Italian FTSE MIB is down 132 points at 22010, according to data from IG.

Global markets fell after a higher than expected US Consumer Price Index The Bureau of Labor Statistics reported Tuesday that an August report that showed prices rose 0.1% for the month and 8.3% annually in August, defying economists’ expectations that headline inflation will fall 0.1% on a monthly basis.

Core CPI, which excludes volatile food and energy costs, rose 0.6% from July and 6.3% from August 2021.

UK inflation figures are due for August, and Eurozone industrial production for July will be published.

– Holly Eliat

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