Saudi Arabia’s oil strategy, Europe’s car sales and eye of the beholder

The daily briefing “FirstFT” from the Financial Times.

Saudi Arabia claims it has the upper hand in the battle for oil dominance . One of its officials told the FT its strategy of squeezing high-cost rivals by boosting production in order to lower prices is paying off: “There is no doubt about it, the price fall of the last several months has deterred investors away from expensive oil including US shale, deep offshore and heavy oils”.

The latest International Energy Agency data backs the Saudi position, although the agency cautioned that while US shale production had “buckled”, global crude supply was growing even from high-cost places such as Brazil. Prices are rising but those who have cheered a recent rally should take caution – it may not last. (FT, Bloomberg)

In the news

Pressure from the prince The UK government has released letters from Prince Charles to seven government departments. They show the heir to the throne protested to Tony Blair about the defence budget leaving troops without resources and wrote to the government about subjects as diverse as badger culling, Patagonian toothfish and the dominance of supermarkets. (FT)

The Vatican recognises Palestinian statehood The symbolic move to sign a treaty with the Palestinian Authority “lends a powerful signal of moral authority and legitimacy” to efforts aimed at achieving statehood. The move brought immediate criticism from Israel. (FT)

Car sales speed up European economy Unemployment is falling, disposable incomes are on the rise and consumption has been lifted by tax cuts, low oil prices and ultra-low interest rates. The eurozone economy grew 0.4 per cent in the first quarter, as the plunge in energy prices helped spur the region towards a meaningful recovery. (FT)

DoJ probes BoE forex inquiry The US justice department has secretly requested to interview a senior Royal Bank of Scotland foreign exchange trader as it looks into the thoroughness of the Bank of England’s inquiry into forex market manipulation and how the investigation was handled. It comes at a sensitive time for the central bank, which is trying to recast its image as a more transparent and accountable institution. (FT)

TPP fast track back on the line Senate Democrats forged a compromise with Republicans that will allow Barack Obama to move on with the Trans-Pacific Partnership, a trade deal he is trying to close with Japan and 10 other countries. Although they had blocked a bill to grant him the fast-track authority to wrap up the negotiations, the White House scrambled to rally support and the Senate will now vote on a trade enforcement deal and then on trade promotion authority. (FT)

It’s a big day for

China-India relations Prime Minister Narendra Modi makes his first visit to China on a three-day trip just as the two countries have ratcheted up their geopolitical rivalry. India has deepened its ties with the US, Vietnam and Japan, while China has bolstered its links with India’s rival Pakistan. (WSJ)

Food for thought

China’s feminist awakening Xiao Meili, a women’s rights campaigner, explains how she got involved in activism and says that “feminism was never a taboo topic in China because our messages were consistent with those of the government, which calls itself an advocate of women’s rights. But all that changed with the arrest of what the media dubbed the ‘Feminist Five’.” (NYT)

The ballad of John and John Fellow Vietnam war veterans and senators, John McCain and John Kerry were once close friends who even seriously discussed running on a bipartisan presidential ticket together in 2004. But times have changed, and Mr McCain has emerged as the secretary of state’s harshest critic, labelling him “delusional” and a “human wrecking ball” in his diplomatic work, particularly on Iran. (Politico)

Eye of the beholder Christie’s has sold more than $1bn of art this week, including a record-breaking Picasso and Lucien Freud’s “Benefits Supervisor Resting” (below). But paintings are not securities, argues John Gapper. “The true value lies in owning a painting that the Tate or Getty museums would love to display in public, and being able to dazzle yourself and others in private.”

Central Asia: After the strongmen The leaders of Uzbekistan and Kazakhstan have spent decades winning polls with upwards of 90 per cent of the vote. But with each passing “election”, the question of who will replace the septuagenarians grows more urgent. The answer will shape the future of a region delicately balanced between Russia, China, Afghanistan and Iran. (FT)

Tape it or fake it? Spotted on the limbs of everyone from Cristiano Ronaldo to Derrick Rose,Kinesio tape has emerged as one of professional athletes’ preferred healing methods. But does it actually work? And does that actually matter? (Pacific Standard)

Video of the day

Better taste, less filling The chief executive of SABMiller, the world’s second-largest brewer, has criticised the sector’s “insulting” advertising for putting women off beer and encouraging a “laddish, college frat” image of beer drinking long past its sell date. Lex discusses the brewer’s results, which were better than expected but were hit by the strength of the dollar. (FT)

This article is published in collaboration with The Financial Times. Publication does not imply endorsement of views by the World Economic Forum.

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Author: FirstFT is the Financial Times’ editors curated free daily email of the top global stories from the FT and the best of the rest of the web.

Image: A worker walks down the stairs of an oil tank. REUTERS/Umit Bektas.