Theresa May’s cabinet, ‘leprechaun economics’ and sheep-cams in the Faroes

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Theresa May’s arrival as UK prime minister on Wednesday will see more women in senior cabinet jobs and is likely to mark the end of George Osborne’s six years at the helm of Britain’s economy.

Philip Hammond, foreign secretary, is backed by Tory MPs to replace Mr Osborne, although his hawkish fiscal stance and free market approach appear at odds with Mrs May’s plan to end austerity and rein in capitalist excess. Here’s where Mrs May stands on key issues and here is a look at her working style in the Home Office. (FT)

The opposition Labour party is focused on the divisive battle to choose a new leader. Jeremy Corbyn, whose leadership was challenged when 63 front bench spokespeople including most of the shadow cabinet resigned in the wake of the Brexit vote, is facing campaigns from former shadow business leader Angela Eagle and former shadow work and pensions secretary Owen Smith.

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In the news

‘Leprechaun economics’ Home to some of the world’s greatest works of fiction, Ireland may have just produced another memorable opus: the economy grew at 26.3 per cent last year, according to official data. The figures were met by bafflement and scorn but the official explanation is the surge was caused by tax inversions — corporate restructuring or companies moving assets or intellectual property to Ireland. (FT)

Advertisers get a piece of Pokémon The developer behind Pokémon Go is planning to allow retailers and other companies to sponsor places on its virtual map. The location-based mobile game has been a smash hit around the world and developer Niantic said paid deals encouraging players to go to particular locations were a “huge opportunity”. Not everyone will welcome the invasion of Pokémon hunters, however: the Holocaust Museum in Washington has asked players to stay away, calling the game “inappropriate” for the memorial. (FT)

China rebuked China has reacted angrily to the ruling by a UN tribunal that there is “no legal basis” for Beijing’s expansive claims in the South China Sea. The ruling constitutes a sharp rebuke to China’s claim to 85 per cent of the South China Sea, demarcated by the “nine-dash line” on Chinese maps. It raises risks for both the US and China. Taiwan’s claim to the disputed Spratly Islands was also affected by the ruling. On Wednesday Taipei sent a warship to patrol the area. (FT, NAR)

Egypt’s ‘disappeared’ The country’s security services are accused of trying to stamp out dissent through kidnap and torture. Hundreds of students, activists and even teenage protesters have disappeared over the past year, a rights group says. The murder of Italian student Claudio Regeni shone a spotlight on the issue of police brutality in Egypt earlier this year. Rights groups estimate that as many as 40,000 have been arrested in Egypt since President Abdel Fattah al-Sisi took power in 2013. (BBC, Telegraph)

South Sudan fighting. A fragile peace is holding Juba, South Sudan’s capital, after a call by rival political leaders to stop fighting. However, the leadership’s control over their supporters could be weaker than thought, and could be exploited by powerful figures in the military. The power struggle does not bode well for peace in the world’s youngest country. (Guardian, African Agruments)

It’s a big day for

David Cameron In his final hours as prime minister of the UK he will chair prime minister’s questions in parliament before heading to Buckingham Palace and handing in his resignation. When he stood down Mr Cameron listed what he considered to be his best achievements, including on the economy and legislating to allow gay marriage. However, he will forever be remembered as the man who took his country out of the EU. (FT)

Food for thought

It pays to be the boss Double-digit pay rises became the norm on Wall Street in 2015, while European banks proved they were willing to pay big to get the chief executives they wanted. An FT interactive illustrates the jump in executives’ salaries over the past few years. (FT)

An end to facile optimism about the future Measured growth is slowing because invention has slowed, writes Martin Wolf. “Today’s innovations are narrower in their effect than those of the past. Worse, their benefits seem to be less widely shared.” (FT)

Crunch time for Merkel The most pointed comment Angela Merkel has made since Britain’s vote to leave the EU was that the decision was “regrettable”. As understatements go it would be hard to beat, yet it masks the fact that the 61-year-old EU veteran is preparing for the fight of her political life. (FT)

Sheep view 360 Residents of the Faroe Islands are hoping a new campaign will entice Google to send over street view cars to map their land — “the most beautiful place on earth”. Their strategy? Strap cameras on to the island’s ubiquitous sheep and broadcast the footage to the world. (Digital Trends)

Why are headphones everywhere? Since 2012, the popularity of headphones has exploded. Do we really like music this much? Or are we edging deeper into unsociability and narcissism? You decide. (New Yorker)

Video of the day

How Brexit affects millennials in the city Young professionals in Britain have a lot to say about the country’s vote to leave the EU. The FT’s Miranda Green discusses with former derivatives trader Maximillian Kaupp-Roberts what’s at stake for the country’s younger generation. (FT)