FirstFT: Bezos and Biden again clash over inflation

The White House and Jeff Bezos have renewed a spat over Joe Biden’s management of high inflation as the Amazon founder criticised the US president for calling on companies to cut prices at filling stations.

On Saturday, Biden demanded on Twitter that companies managing gas pumps decrease soaring fuel prices at “a time of war and global peril”. 

Bezos hit back in a tweet later that day, saying that inflation was “far too important a problem for the White House to keep making statements like this”.

White House press secretary Karine Jean-Pierre joined in the spat on Sunday, writing on Twitter that oil prices had fallen approximately $15 in the past month while prices at gas pumps had “barely” dropped.

It was not the first clash between Bezos and Biden. In May, the world’s third-richest man attacked the US president’s failed Build Back Better bill for threatening to stoke inflation above its already four-decade high.

Price rises have become a hot-button topic in US politics ahead of midterm elections in November.

In a sign of the White House’s determination to bring down energy prices, details of a plan to sell new oil leases in offshore waters was released late on Friday.

The proposal, which includes 10 new auctions in the Gulf of Mexico and another potential round of bidding off Alaska, breaks a Biden campaign election pledge to shut down drilling for fuels on federally owned territory.

Do you agree the Biden administration should permit more drilling for oil? Email me at firstft@ft.com or alternatively hit reply on this newsletter and tell me your view and I may feature your response in a future edition of FirstFT Americas.

Here’s the rest of today’s news — Gordon

Five more stories in the news

Beijing silent over Jinping’s brush with Covid-19 in Hong Kong A Hong Kong lawmaker has sparked concerns over the health of Xi Jinping after testing positive for Covid-19 just two days after his meeting with the Chinese president. Xi’s brush with Covid-19 comes as lockdown measures and mass testing are reintroduced in the east of China following a new outbreak of cases.

2. Russia claims full control of Luhansk region Moscow’s forces claimed to have seized the entirety of Luhansk after capturing Lysychansk, Kyiv’s last stronghold in the eastern region. The victory comes after weeks of brutal fighting and hands President Vladimir Putin a significant military achievement in his ambition to control the whole of the Donbas.

3. ECB targets banks’ windfall The European Central Bank is examining ways to stop lenders earning billions of euros in extra profit from the €2.2tn programme of ultra-cheap subsidised loans it offered during the pandemic once it starts raising interest rates this month. The ECB is also preparing to warn national regulators this week of the dangers of getting ahead of pending EU cryptocurrency rules.

4. Argentina’s crisis deepens as finance minister quits Martín Guzmán quit suddenly amid a split within the ruling Peronist coalition, unnerving investors already concerned about spiralling inflation and dire public finances. Guzmán, who had led negotiations with the IMF and private sector debtors, resigned over the weekend.

5. Wirecard’s former top accountant admits forging documents The ex-head of accounting at the German technology company has admitted to forging documents requested by KPMG during a special audit. Stephan von Erffa is one of three Wirecard executives who were charged with fraud, breach of trust and market manipulation this year.

The day ahead

Ukraine ‘recovery conference’ Representatives of Volodymyr Zelenskyy’s government will meet partners in Lugano, Switzerland for a “recovery conference” focusing on Ukraine’s future. A draft document seen by the Financial Times suggests Ukraine is putting a price tag of $750bn on the country’s national recovery programme.

American Independence Day US markets are closed as the country observes a federal holiday to celebrate the anniversary of its separation from Great Britain.

What else we’re reading

Why Mexico is missing its chance to profit from US-China decoupling A predicted economic boom from American companies relocating closer to home or “nearshoring” has not arrived. Mexico’s overall economic growth over the past three years has been among the weakest of Latin America’s larger economies and many blame President Andrés Manuel López Obrador.

America needs to get women back into work Female labour force participation is falling because families can’t get affordable, flexible childcare, argues Rana Foroohar. Things have hit a new crisis point following the pandemic, she says.

Global inflation: Japan faces a moment of truth The Bank of Japan’s decades-long ultra loose monetary policy is under increasing pressure from rising global inflation. Analysts say the yen — and Japan’s economy — stands at a critical juncture with two starkly different outcomes, depending on the central bank’s next steps.

Immune imprinting drives debate about Covid-19 jabs Two years into the pandemic, people have acquired different types of immunity depending on which strains they have encountered. This spectrum requires a broad response and presents a challenge for the next generation of vaccines.

Nato’s revival The return of cold war rhetoric at Nato’s summit last week promised the rejuvenation of an alliance of values standing opposed to Moscow — and Beijing. But it masked growing internal differences about how to endure the rising economic costs of the war in Ukraine, divisions that will test western resolve as leaders face pressure back home.

Pop-up leaders and flexible staff are ready for a new crisis The entire workforce has just taken a global stress test in double-digit inflation and economic recession. Now, senior managers are more prepared to tackle upheaval than executives appreciate, writes Andrew Hill.

Henry Mance Interview

Michael Lewis, one of the greatest chroniclers of America’s financial crisis, took aim at Donald Trump and at the US response to Covid-19 in an interview with our chief features writer. “The thing that really works for Trump is: the system’s rigged.”