FirstFT: US shale bosses rule out help for Europe

Good morning. The US shale industry has warned it cannot rescue Europe with increased oil and gas supplies this winter amid fears that a plunge in Russian exports will send crude prices soaring back above $100 a barrel.

Even though oil markets have softened in recent weeks, the respite could end when an EU embargo on Russian sales comes into full effect later this year. US Treasury secretary Janet Yellen this week warned the embargo “could cause a spike in oil prices”.

However, US shale executives sitting on vast oil and natural gas reserves that could be used to alleviate a European energy crunch say they will be unable to step up supplies quickly enough to prevent winter shortages.

“It’s not like the US can pump a bunch more. Our production is what it is,” said Wil VanLoh, head of private equity group Quantum Energy Partners, one of the shale patch’s biggest investors.

“There’s no bailout coming,” VanLoh added. “Not on the oil side, not on the gas side.”

Thanks for reading FirstFT Americas. Here is the rest of today’s news — Gordon

Five more stories in the news

1. US Senate panel approves $6.5bn bill to fund weapons for Taiwan The Taiwan Policy Act was passed by a margin of 17-5 by the US Senate foreign relations committee. The bill, which still requires approval by the full Senate and the House, marks the first time the US would directly finance the provision of weapons to Taiwan.

2. California sues Amazon California has sued Amazon over claims that it punishes third-party sellers who offer their products more cheaply on other websites, in the latest legal action against the $1.3tn tech giant by prosecutors and regulators in the US and Europe.

3. Key moment for crypto market Ethereum, the world’s second-biggest blockchain, has completed a long-awaited upgrade to its system in a move expected to slash its energy costs and intended to prepare the ground for more use of crypto technology in mainstream finance. Vitalik Buterin, Ethereum co-founder, said the upgrade, known in the industry as “The Merge”, had been completed earlier today.

4. China’s state banks cut deposit rates for first time since 2015 Some of China’s biggest state-run banks have cut deposit rates for the first time since 2015, as Beijing searches for ways to boost flagging growth in the world’s second-largest economy without risking runaway depreciation of the renminbi.

5. Britain looks to scrap bank bonus cap Kwasi Kwarteng, chancellor, is seeking to scrap Britain’s cap on bankers’ bonuses, introduced after the 2008 financial crash, in a controversial move to boost the City of London’s global competitiveness. Kwarteng argues the move will make London a more attractive destination for top global talent and will be a clear signal of his new “Big Bang 2.0” approach to post-Brexit City regulation.

The day ahead

Economic data US retail sales figures will be closely watched following higher than expected consumer price inflation figures this week. The US labour department releases data on new applications for unemployment aid and a series of data releases today should offer insight into the state of manufacturing, including US industrial production, the Empire State manufacturing survey and the Philadelphia Fed’s business outlook survey.

Joe Biden to warn of threat to US democracy The US president will again focus on the threats to US democracy and political violence in a speech later today. The remarks are part of the United We Stand Summit at the White House and come after Biden this month called the Republican party and Donald Trump’s supporters a “threat to this country”.

Shanghai Cooperation Organisation forum Chinese president Xi Jinping will travel outside China for the first time since the pandemic began to attend the forum in Kazakhstan, which starts tomorrow. Also present will be Russian counterpart Vladimir Putin, India’s prime minister Narendra Modi, Iran’s president Ebrahim Raisi and Pakistan’s prime minister Shehbaz Sharif.

Northern Ireland protocol deadline It is the last day for Downing Street to submit a formal response to seven legal actions launched by the EU against Britain over breaches of the Northern Ireland protocol, as grace periods allowing lighter touch trade controls are due to expire. (Guardian, FT)

What else we’re reading

Scenes from the end of an Elizabethan age The state funeral for the Queen on Monday will be a solemn ceremony but in the meantime the public waits to see the body lying in state and pay their respects at Buckingham Palace. Imogen West-Knights joined mourners, lost-looking tour groups and history rubberneckers outside the royal residence.

Thank you to everyone who took part in yesterday’s poll. Sixty-four per cent of respondents said they did not want King Charles III to speak up on political issues, while 27 per cent of respondents said they did.

Citi opens Málaga hub for junior bankers Málaga is better known for its sunshine and food than banking. But yesterday 27 young recruits started at Citi’s new hub for junior investment bankers. Rivals have dismissed it as a gimmick but the US bank claims it is a way of offering a “better work-life balance” for its new starters. Will it work?

The Republicans are trying hard to defeat themselves Until a few weeks ago, it was taken for granted Republicans would win a clean sweep in November’s midterm elections. Three things have changed, writes Edward Luce.

Axel Springer boss used Bild to campaign against Adidas Chief executive Mathias Döpfner used his best-selling tabloid to campaign against Adidas’s decision to stop paying rent during the pandemic, publishing more than 20 articles chiding the sportswear retailer for a planned rent freeze — without disclosing that he was its landlord in Berlin.

Defiance in the rabbit warren of Kyiv’s presidential palace Last week, Gillian Tett took a trip down the darkened corridors of the Ukrainian presidential palace, where despite fighting off a brutal Russian invasion for seven months, President Volodymyr Zelenskyy and his team are intent on delivering the message of business as usual.

Italians at boiling point over how to cook pasta with less gas Can you cook pasta with the gas turned off? As fuel bills surge, Rome’s advice to citizens to save energy with “virtuous actions” — including turning down the heat under saucepans — has prompted a culinary debate, Amy Kazmin writes.

Technology

In the early 2000s, if you wanted a presence on the web, you had to build it, either by writing HTML code or using primitive services such as Yahoo’s GeoCities. Now, as Dave Lee explains, the “no-code” movement allows users to build powerful websites or apps without writing any code.