FirstFT: US has urged Ukraine to halt strikes on Russian oil refineries

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Good morning. The US has urged Ukraine to halt attacks on Russia’s energy infrastructure, warning the drone strikes risk driving up global oil prices and provoking retaliation, according to three people familiar with the discussions.

The repeated warnings from Washington were delivered to senior officials at Ukraine’s state security service, the SBU, and its military intelligence directorate, known as the GUR, the people told the Financial Times.

Both intelligence units have steadily expanded their own drone programmes to strike Russian targets on land, sea and in the air since the start of the Kremlin’s full-scale invasion in February 2022.

One person said the White House had grown increasingly frustrated by brazen Ukrainian drone attacks that have struck oil refineries, terminals, depots and storage facilities across western Russia, hurting its oil production capacity.

Russia remains one of the world’s most important energy exporters despite western sanctions on its oil and gas sector. Oil prices have risen about 15 per cent this year to $85 a barrel, pushing up fuel costs just as US President Joe Biden begins his campaign for re-election. Read more about Washington’s rebuke.

• EU defence: Brussels is exploring how to bypass a treaty that prohibits arms purchases made from the union’s budget, as it steps up efforts to increase financing for defence and Ukraine.

Here’s what else I’m keeping tabs on today and over the weekend:

• Economic data: The UK has February retail sales, while Ifo publishes its German business climate survey today.

• Central banks: The European Central Bank’s chief economist Philip Lane delivers a lecture on inflation and monetary policy at the Aix-Marseille School of Economics in France today. Russia’s central bank announces its interest rate decision.

• Earnings: Phoenix Group, OMV and JD Wetherspoon report results.

• Elections: Slovakia holds the first round of presidential elections on Sunday, and Senegal holds a presidential poll after the current president attempted to postpone the vote.

• Holidays: Hindus and Sikhs celebrate Holi on Sunday, while Israel observes the Jewish festival of Purim.

How well did you keep up with the news this week? Take our quiz.

Five more top stories

1. Exclusive: The Bank of England governor has signalled that markets are right to expect more than one interest rate cut this year, saying he is increasingly confident inflation is heading towards target. Offering an upbeat take on the UK economy, Andrew Bailey told the FT that rate cuts were “in play” at future meetings of the Monetary Policy Committee amid signs that tighter policy had quelled the risk of a wage-price spiral.

2. UK consumers’ confidence about their personal finances has hit the highest level in more than two years, according to a closely watched survey. Research company GfK said people’s outlook on their own financial situation for the year ahead rose two points month on month to 2 in March. The increase marks the first time since December 2021 that the measure has been above zero and puts it well above its long-run average of minus 1.7.

3. In a sweeping antitrust lawsuit, the US has alleged that Apple locked millions of its users into a powerful monopoly that has made it one of the most valuable companies in the world. The suit paints a picture of a company that has spent years knowingly heading off competitive threats to its ecosystem, including on the App Store, in messaging with rival Android phones, on its “tap to pay” service and in the smartwatch market. Read more about the allegations.

4. Shares in social media company Reddit leapt by almost half on its market debut in a vote of confidence for initial public offerings after two years of subdued activity. The stock closed at $50.44 after trading began yesterday at the New York Stock Exchange, up 48 per cent from its IPO price of $34 a share. Here’s more on Reddit’s debut.

• Opinion: The excitement over Reddit’s IPO has diverted attention from an important issue that could have greater ramifications for capital markets, writes Caroline Escott, chair of the Investor Coalition for Equal Votes.

5. Gatwick airport plans to pay its owners a dividend for the first time in five years, making the UK’s second-largest airport one of the first in Europe to reinstate shareholder payouts since the pandemic. London’s Heathrow airport and Manchester Airports Group, which owns three UK airports, have not yet said when dividends will restart. Read more on Gatwick’s earnings.

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Take a break from the news

Are there any steaks left to be discovered? The FT’s Louis Ashworth consults butchers, food scientists and “meat influencers” who can’t quit searching for new ways to slice a cow.

Additional contributions from Benjamin Wilhelm