Good morning.
Shell could be forced to abandon its investment in a major Russian gas project after Putin threatened to seize the rights to the facility.
The Kremlin said the rights to the Sakhalin-2 plant would be transferred to a new Russian company, citing threats to the country’s national interests and economic security.
Shareholders have a month to say if they will take stakes in the new company, but they have been warned that they may not get their money back if they don’t.
The move could lead to complications for Shell, which has a 27.5% stake in Sakhalin-2.
The company previously said it would sell its stake, the value of which Shell deteriorated to $ 1.6 billion (£ 1.3 billion) earlier this year, with Chinese state-owned energy companies tied to a possible deal .
5 things to start the day
1) BT workers went on strike for the first time since Thatcher’s privatization. 40,000 employees go on strike over broadband while rejecting “unsustainable” pay rise offer
2) How Heinz Caused Tesco to the Battle of the Beans Showdown highlights tensions between supermarkets and suppliers as inflation picks up
3) Elon Musk intensifies Tesla war to work from home with emails “please explain” Staff receive automated communications if they do not enter the office often enough
4) Rising early retirement is fueling inflation, says Treasury chief Mandarin The exodus of nearly half a million labor market workers is hurting the economy
5) Amazon blocks LGBTQ searches in UAE after political pressure The online giant says it complies with the laws of the countries where it operates
What happened overnight
Asian markets have struggled again this morning after another Wall Street sell-off fueled by fears of recession, with warnings of a bleak outlook for the global economy as central banks slow to fight rising inflation.
Data showing that U.S. consumers, the backbone of the world’s largest economy, was increasingly reluctant to spend a further blow to stocks on Thursday, with the S&P 500 suffering its worst January-June since 1970.
Because the war in Ukraine shows no sign of ending, keeping energy costs high, there is an expectation that borrowing costs will continue to rise and send economies into recession.
After a broad retreat Thursday in Asia, markets struggled to recover, but with little conviction.
Tokyo, Shanghai, Seoul, Taipei and Bangkok fell, although there were small gains in Sydney, Singapore, Manila and Jakarta. Hong Kong was closed for holidays.
Arrive today
- Corporate: No updates scheduled
- Economy: inflation (EU), manufacturing PMI (UK, US, EU China), mortgage approvals (UK)