FirstFT: G7 explores energy price caps

G7 members are to explore ways of curbing energy costs, including possible caps on the price of oil and gas, at a summit that has been overshadowed by fears of a recession induced by rising inflation.

Officials yesterday evening settled on resolutions to develop solutions to reduce Russia’s hydrocarbon revenues while minimising the negative impacts of high energy prices.

According to a draft text seen by the Financial Times, leaders will explore the “feasibility” of introducing temporary price caps on imports of energy — a reference to a US-led push for a ceiling on the Russian oil price.

Leaders also pledged to “align and expand targeted sanctions to further restrict Russia’s access to key industrial inputs, services and technologies”, as they promised to step up security commitments to Ukraine.

The G7 meeting, which comes four months into Moscow’s invasion of Ukraine, was hosted by Germany in the Bavarian Alps and will conclude today.

The leaders also condemned Russia’s “abominable attack” yesterday on a shopping mall in the Ukrainian city of Kremenchuk, warning that indiscriminate attacks on civilians “constitute a war crime”. Ukraine’s president Volodymyr Zelenskyy described the missile strike as a “terrorist” attack.

More from the G7 summit:

Thanks for reading FirstFT Europe/Africa and here’s the rest of the day’s news — Jennifer

Five more stories in the news

1. Boris Johnson wins vote to rip up N Ireland protocol The UK prime minister yesterday secured a 74-vote House of Commons majority for legislation to deactivate the Northern Ireland protocol in his Brexit deal with the EU, but only after the plan was mauled by his predecessor, Theresa May.

“This bill, in my view, is not legal under international law, won’t achieve its aims and diminishes the standing of the UK in the eyes of the world” — Theresa May

2. Bob Diamond’s PE firm raises funding from Qatar Atlas Merchant Capital, which was co-founded by the former Barclays chief executive almost a decade ago, has struck a non-binding commitment of $100mn with Qatar to fund a new distressed asset vehicle. The fund will seek to raise $1.5bn from other institutional investors ahead of closing next year.

3. Credit Suisse found guilty over Bulgarian drug money failings Credit Suisse has become the first domestic bank to be found guilty of a corporate crime by Swiss authorities after a court said the lender failed to stop the laundering of Bulgarian drug money, accusing it of ignoring red flags including cash in suitcases and two assassinations.

4. Trump’s Spac plans suffer blow after subpoenas Donald Trump’s plans to take his media business public have suffered a blow after a federal grand jury issued subpoenas to a blank-cheque company that is set to merge with Trump Media and Technology Group.

5. Luxottica founder Leonardo Del Vecchio dies aged 87 The billionaire founder of the eyewear group who rose from a childhood spent in an orphanage to become Italy’s second-richest man, has died.

The day ahead

Nato meeting Officials from 30 member countries gather for three days in Madrid as Spain marks 40 years since joining the transatlantic alliance. Nato announced yesterday it would increase its forces on high alert more than sevenfold to 300,000. The FT View is that an expansion of the rapid reaction force marks a pivotal moment.

Scotland independence plan First minister Nicola Sturgeon is expected to detail how she plans to hold a second independence referendum. Robert Shrimsley explains why Sturgeon is choosing to do this now.

Economic indicators: Consumer confidence figures are out for Germany and France, which is due to hold its first National Assembly session after a parliamentary election created a hung parliament. Hungary delivers an interest rate decision while in the US, an S&P home-price index is forecast to show housing costs rose in April while consumer confidence deteriorated. (FT, WSJ)

Australian PM in Paris Newly elected premier Anthony Albanese is due to visit the French capital to “reset” relations strained by a scrapped submarine deal.

Ghislaine Maxwell in court The British socialite and confidant of the late convicted sex offender Jeffrey Epstein is due to be sentenced in the US after being found guilty in a sex abuse trial.

Join senior FT journalists, Il Sole 24 Ore and Sky TG24 in conversation with business as well as government leaders, including the Italian Minister of Foreign Affairs, representatives of the European Commission, Bank of Italy, and many more at the Made In Italy Pre-Summit on July 13. Register for free today here.

What else we’re reading

The revival of eastern Germany Once a byword for economic decline, Germany’s formerly communist east has become home to Europe’s rapidly expanding electric car sector, turning the region into one of the continent’s hottest pieces of industrial real estate. Here’s how it happened.

Europe’s Spacs scramble for targets The continent may have been late to the boom in special purpose acquisition companies, but that did not stop some of its wealthiest and highest-profile business figures from muscling in. Now, the region’s largest blank-cheque vehicle, Pegasus Europe, is among those still on the hunt for a merger.

Young men are slipping through the cracks The biggest driver of the decline in youth worklessness in recent decades is the collapse in the number of stay-at-home young mothers. But there is another hidden story: the proportion of inactive young men has climbed from 5 per cent in 2000 to 9 per cent last year. Sarah O’Connor goes deeper.

Why inflation’s boost to UK public finances is unlikely to last Inflation has been a boon to Rishi Sunak, boosting tax receipts, cutting the budget deficit and giving the chancellor a windfall he has used to promise tax cuts. But politicians, officials and economists predict that higher debt interest payments, falling real wages and pressures on public services are set to make his life more difficult.

What’s a good (and bad) way to leave your job? We too often fail to manage job endings well. The consequences not only affect the person leaving, but can also harm staff remaining — and the company itself. Naomi Shragai, a business psychotherapist and author, shares tips for amicable endings.

Summer reads

Looking for a page-turner? Check our Laura Battle’s 10 top fiction recommendations.