FirstFT: Texas-based oil services group SLB expands operations in Russia

Good morning. Today we’re covering:

The scandal engulfing Argentina’s Peronist movement

The strong retail data allaying US recessionary fears

The shadow hanging over the Democratic National Convention next week

But first, Houston-based SLB, the world’s largest oilfield services company, is expanding its operations in Russia, despite the exit of its two main rivals, Baker Hughes and Halliburton, after Moscow’s invasion of Ukraine in 2022.

The FT has identified more than 1,000 job advertisements posted by the company, formerly known as Schlumberger, since December, seeking roles that range from drivers to chemists and geologists. Searches of Russian trademark and corporate databases show SLB Russian subsidiaries registered two new trademarks in July.

Although SLB has been upfront that it has no plans to leave Russia, in July 2023 it said it was “halting shipments of products and technology into Russia from all SLB facilities worldwide in response to the continued expansion of international sanctions”. But filings show the company continued to import millions of dollars of materials from other sources.

Human rights groups and the Ukrainian government allege SLB’s work in the country helps to generate billions of dollars in oil revenues to support the Kremlin’s war effort. 

SLB declined to comment. A person close to the company said the imports were not “from an SLB facility” and are therefore “consistent with SLB’s public statements and within international sanctions guidelines”.

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

Israel-Hamas war: Ceasefire talks continue today, after the US and Israel kicked off negotiations in Doha yesterday.

Economic data: The University of Michigan publishes its consumer sentiment index for the US.

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

Five more top stories

1. Wall Street rallied yesterday on the back of robust US retail data and strong results from Walmart, assuaging recessionary fears and helping to reverse the steep market sell-off earlier this month.

Recession confusion: There are flaws in key indicators of a downturn, writes Soumaya Keynes. Investors may have to live with some uncertainty.

2. Former president Donald Trump has dismissed calls from senior Republicans to halt his personal attacks on vice-president Kamala Harris, saying that “she certainly attacks me personally. She actually called me weird”.

3. Brazil and Colombia have suggested that Venezuela holds fresh presidential elections to end the crisis sparked after Nicolás Maduro’s disputed victory last month. Maduro appeared to rebuff the calls last night, saying “I don’t practice microphone diplomacy . . . otherwise, one becomes an adviser to other countries.”

4. The US is set to ease its restrictions on sharing sensitive technology with the UK and Australia, removing barriers to trilateral defence co-operation as the allies try to counter China in the Indo-Pacific.

5. Donald Trump’s economic plans would hurt US business, according to a report from a leading Democratic, centre-left think-tank. It warned that his protectionist trade proposals, including higher tariffs, could drive up costs for companies and consumers and “should make business leaders shudder”.

With just 80 days until Americans vote, sign up for the FT’s US Election Countdown newsletter to stay updated on the White House race.

News in-depth

On Wednesday, federal prosecutors presented domestic violence charges against former Argentine president Alberto Fernández, following claims by his ex-wife Fabiola Yañez that he repeatedly beat her while they lived in Argentina’s presidential residence between 2019 and 2023. Leaked photos showing Yañez with bruises have been widely circulated by Argentine media. The case has plunged Argentina’s left-leaning Peronist movement into a scandal that stands to benefit libertarian President Javier Milei and extend public patience for his painful austerity programme.

We’re also reading . . . 

Democratic National Convention: The shadow of 1968 hangs over Chicago ahead of the DNC next week, Claire Bushey writes.

End of an EU era: After a decade as the bloc’s top antitrust official, Margrethe Vestager, renowned for hitting US Big Tech firms with multibillion-euro fines, will not be reappointed for a third term.

‘Poisonous shrimp’: As US-China tensions rise, Singapore is boosting defence spending, hoping to maintain its status as a small but hazardous target for predatory forces.

Chart of the day

Few hints were given ahead of Laxman Narasimhan’s abrupt exit as Starbucks’ chief executive this week. But the process started 15 weeks ago, after the shock of a bad quarter sparked a series of behind-the-scenes manoeuvres by a tight-knit group of directors and investors.

Take a break from the news

The next time you see someone take a selfie on the plane, don’t mock them: some are basking in a pleasure their parents never experienced. More people than ever are now able to enjoy the life-altering effects of a holiday, writes Simon Kuper.

Additional contributions from Tee Zhuo and Benjamin Wilhelm