Russia’s Putin announces partial military mobilization
Russian President Vladimir Putin delivers a speech during a ceremony to receive credentials 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 the country’s people and economy on a war footing as Moscow’s invasion of Ukraine continues.
In a rare, pre-taped televised announcement, Putin said the West wanted to “destroy our country” and claimed the West was trying to “turn the Ukrainian people into cannon fodder,” in comments translated by Reuters.
Putin said the “mobilization events” would start on Wednesday, without giving many other details apart from ordering an increase in funding to boost Russian arms production.
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– Holly Ellyatt
Germany nationalizes energy giant Uniper while Russia cuts gas supplies
Uniper received billions in financial aid from the federal government because of the sharp rise in gas and electricity prices after the Russian war in Ukraine.
Picture Alliance | Picture Alliance | Getty Images
The federal government approved the nationalization of the energy supplier Uniper on Wednesday in order to keep the industry afloat after a global energy crisis.
After the state agreed back in July to bail out the big gas importer with a €15 billion ($14.95 billion) bailout, the state will now sell the 56 percent stake in Finland’s Fortum for 0.5 buy billions of euros. The German state is said to hold around 98.5% of Uniper.
“Since the agreement on the stabilization package for Uniper in July, Uniper’s situation has continued to deteriorate rapidly and significantly; therefore, new measures to resolve the situation have been agreed,” Fortum said in a statement Wednesday morning.
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– Eliot Smith
Oil prices rise as investors brace for further Fed rate hikes
Oil prices edged higher after falling in earlier trading on Wednesday ahead of an expected aggressive rate hike by the Federal Reserve.
Brent crude futures rose 0.23% to $90.83 a barrel, while US West Texas Intermediate 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 increase modestly in September,” Commonwealth Bank of Australia analyst Vivek Dhar wrote in a statement.
— Lee Ying Shan
CNBC Pro: FedEx warned of bleak outlook – should investors be concerned?
FedEx’s dismal preliminary results and revised outlook sent shares tumbling last week, but is it as bad as it looks?
CNBC Pro asked investment professionals for their thoughts on what the announcement means for the global economy and for investors.
Pro subscribers can read more here.
– Zavier Ong
European companies are rethinking their China plans
European companies in China are increasingly facing an environment where “ideology trumps business,” the European Union Chamber of Commerce in China said in its annual position paper released on Wednesday.
Jörg Wuttke, president of the group of companies, said this year’s Covid controls had turned China into a “closed” and “unmistakably different” country that could prompt companies to leave the country.
Earlier this month, Chinese President Xi Jinping said the country has “continued to respond to Covid-19 and promoted economic and social development in a well-coordinated manner,” paraphrasing his remarks, shared by China’s Foreign Ministry.
– Evelyn Cheng
CNBC Pro: Do you want to play in the EV sector? Analysts say this lithium stock could climb 70%
With interest in battery stocks rising after a difficult year so far, CNBC Pro analyzed a number of stocks in the sector that analysts say have serious potential.
CNBC Pro scanned the Global X Lithium & Battery Tech ETF on FactSet for stocks that could outperform. One stock that made the list is up over 40% so far this year, and analysts say it has more than 70% upside potential.
CNBC Pro subscribers can read more here.
— Wheat Tan
European Markets: Here are the opening calls
European stocks are expected to open in negative territory on Wednesday as investors react to the latest US inflation data.
According to data from IG, the UK FTSE index is expected to open 47 points lower at 7,341, the German DAX 86 points lower at 13,106, the French CAC 40 28 points and the Italian FTSE MIB 132 points lower at 22,010.
Global markets retreated after a higher-than-expected U.S. CPI report for August, which showed prices in August rose 0.1% for the month and 8.3% annually, the Bureau of Labor Statistics reported on Tuesday, defying economists’ expectations that inflation would fall 0.1% on a monthly basis.
The core CPI, which excludes volatile food and energy costs, is up 0.6% since July and 6.3% since August 2021.
UK inflation figures for August are due and July euro-zone industrial production to be released.
— Holly Ellyatt