Credit Suisse shares jump 6%
Actions of the besieged Swiss credit jumped 6% in afternoon trading on Friday following news that it had offered to buy up to 3 billion Swiss francs ($3.03 billion) in debt securities.
It comes after shares of the Swiss bank briefly hit an all-time low earlier this week and credit default swaps hit a record high.
Stocks in motion: ams-Osram down 9.7%; Renault up 6%
German electronics company ams Osram continued its slide in afternoon trading, dropping 9.7% to hit the bottom of the Stoxx 600.
Shares of the French automaker Renaultmeanwhile, jumped 6.2% on news of the progress of an intellectual property dispute with Nissan.
— Karen Gilchrist
US stocks open lower after jobs report
US stocks opened lower on Friday as Wall Street digested the September jobs report.
The Dow Jones Industrial Average was down 1% in early trades, while the S&P 500 was down 1.3%. The Nasdaq Composite slid 1.75% after stronger than expected jobs data pointed to further interest rate hikes.
— Karen Gilchrist
Unemployment rate falls to 3.5% in September, payrolls rise by 263,000 as labor market remains strong
Friday’s nonfarm payrolls report showed the U.S. economy added 263,000 jobs in September, slightly below the consensus forecast of 275,000 from economists polled by Dow Jones.
However, the jobless rate fell to 3.5% from 3.7% in August, signaling a strengthening job market even as the US Federal Reserve raises interest rates to calm the economy and to stem inflation.
The reading will raise bets on a more aggressive monetary policy tightening path ahead of the Fed’s next meeting in November. US Treasury yields jumped after the data was released.
“The Fed is unlikely to be able to cut job openings without raising the unemployment rate in an environment of high inflation, shrinking profit margins and rising interest rates,” said Richard Flynn, chief executive. general of Charles Schwab UK.
“The Fed has been increasingly clear that substantial weakness in the economy could be the expense of a return to lower inflation. As rate hikes ripple through the real economy in the coming months, the labor market could weaken further, reflecting investors’ worries about the recession.
Kremlin behaved ‘like a drug dealer’ on gas supply, says Polish PM
The Kremlin behaved “like a drug dealer,” Polish Prime Minister Mateusz Morawiecki told CNBC’s Charlotte Reed in an exclusive interview.
“In the beginning, the gas [from Russia] was supposed to be very cheap, but now we know the real price of gas. The real price of gas is also the blood of soldiers and people, children and women in Ukraine and the real price of gas is the harsh winter that is currently coming to Europe,” he said.
The Polish leader made the comments in Prague as 44 European leaders gathered to discuss the war in Ukraine and the energy crisis in Europe. This is the first meeting of a new group called the European Political Community.
Stock markets in motion: Renault up 4%, AMS-Osram down 4%
Renault shares gained 4.1% in early trading to lead the Stoxx 600, while at the bottom of the index electronics company ams Osram fell 4.7%.
CNBC Pro: Fund manager says oil is in a multi-year bull market – and names 3 stocks to cash in on
Oil is in a bull market that will last at least six years, according to fund manager Eric Nuttall.
The partner and lead portfolio manager at Ninepoint Partners, which manages more than $8 billion in assets, named three stocks for investors to cash in on.
Pro subscribers can learn more here.
— Zavier Ong
German industrial production falls in August
German industrial production fell in August, the country’s Federal Statistical Office revealed on Friday, as supply bottlenecks persisted due to the war in Ukraine and lingering pandemic-related distortions.
Industrial production fell 0.8% month on month, below expectations for a 0.5% decline among analysts polled by Reuters.
However, July’s monthly figure was revised up to 0% from its previous -0.3%.
Credit Suisse to buy back $3 billion in debt and sell landmark hotel as credit fears linger
One of Credit Suisse’s main challenges this quarter has been legal costs.
Thi Mon Lien Nguyen | Bloomberg | Getty Images
Bank in difficulty Swiss credit offered to repurchase up to 3 billion Swiss francs ($3.03 billion) of debt securities on Friday as it navigates a falling stock price and increased bets against its debt.
The Swiss lender has also confirmed that it is selling its famous Savoy hotel in Zurich’s financial district, sparking some speculation that it is seeking cash.
In a statement on Friday regarding the debt securities buyback offer, Credit Suisse said: “The transactions are consistent with our proactive approach to managing the overall composition of our liabilities and optimizing interest and allow us to take advantage of market conditions to buy back debt at attractive prices.”
Read the full story here.
Here are the opening calls
Great Britain FTSE100 is seen around 20 points lower at 6,977, Germany DAX is expected to drop around 64 points to 12,407 and France CAC 40 is expected to slip about 18 points to 5,918.