Senate Democrats revolted against President Barack Obama, blocking a Republican-backed bill that would have granted him the necessary "fast track" authority to close a major Pacific trade deal.

The White House played down the defeat as a "procedural snafu". But it means yet another delay for the mooted Trans-Pacific Partnership with Japan and 10 other Pacific Rim economies.

Are Obama's efforts to pass the deal worth it? Probably, says Martin Wolf, but the benefits of multilateral deals will be modest and come with risks. "They must not become an alternative to the WTO or an attempt to push China to the margins of trade policy making." (FT)

In the news

Greece uses IMF currency to pay IMF Why rob Peter to pay Paul when you can tap up Paul? Athens took the novel step of raiding its holdings of the IMF's de facto currency to pay the fund EUR750m — the latest sign of its ropey finances. The EUR650m withdrawn enabled it to make the loan payment and pay nearly EUR1bn of public sector salaries today. (FT)

Pressure builds on UBS over Libor The US Justice department is considering scrapping an agreement not to prosecute UBS for allegedly manipulating Libor. The DoJ's probe into forex manipulation has expanded into a possible fraud investigation and fraud charges aren't covered in the UBS non-prosecution agreement. (FT)

Europe knocks back UK's reform demands David Cameron is on a different reform track from Wolfgang Schaeuble. The UK PM wants to push on with overhauling Britain's relationship with the EU but the German finance minister says Europe won't be rushed into treaty reform. He lashed out at George Osborne's "silly" and "unnecessary" record of intervening over the eurozone crisis and noted that many in Brussels believe London intentionally sought to undermine the monetary union. (FT)

Verizon's got mail The largest US telecoms group plans to buy AOL for $4.4bn — a big bet on smartphones replacing TVs and PCs as the primary screens for entertainment. If you're thinking this purchase looks a bit last century, here's why AOL is valuable to Verizon. In short - it's all in the advertising. (FT)

It's a big day for

UK counterterror policies David Cameron will outline the key elements of his counter-extremism legislation today. Policies include disruption orders to prevent extremists airing their views in public or radicalising young people and powers to close premises such as mosques where extremists are trying to build influence. (FT)

Bank of England Governor Mark Carney will speak when the BoE publishes its latest growth and inflation forecasts. After a pre-election lull, City economists are looking for more detail on the BoE's expectations for recovery and interest rates. (FT)

US-Gulf relations President Barack Obama hosts a two-day summit that will introduce a new generation of Arab leaders who "appear more assertive than their fathers...and may be readier to say 'no' to their main ally". They are set to discuss Iran, which has dismissed the summit as "Iranophobia" that will have no bearing on nuclear negotiations. (Reuters, FT)

Food for thought

We've been duped into subsidising our employers Izabella Kaminska reckons we're digging our own professional graves and doing so with our own shovels. The rise of hipsters hot-desking in coffee shops has created an entirely new norm for acceptable work environments because the boundaries of office space no longer have to be respected. (FT)

A coffee conundrum These people in coffee shops are causing discomfort all round — now that Lisa Pollack's previously niche interest in coffee has gone mainstream, she is no longer the rare connoisseur. She thinks this is the curse of social scientists and liberal art majors — "Unable to carve out a distinct identity by way of trade or professional specialism, one instead enlists hobbies, relationships or objects in an effort to be seen as a unique snowflake." (FT)

Jacob Zuma: Power failure A recent wave of xenophobic violence, along with the election of the first black leader of the main opposition party, has placed the South African leader's record under fresh scrutiny. With his own and party's images sullied by allegations of corruption and cronyism, can the septuagenarian survive to serve out the full second term that ends in 2019? (FT)

The art market's green period The total value of the global art market surpassed $51bn in 2014, and it shows little sign of slowing, as shown by the record price paid for Picasso's 'Women of Algiers (Version O)'. The amount of money being tossed around on masterpieces may be ludicrous, but it doesn't necessarily signal a "financial market unmoored from reality", writes Barry Ritholtz. (FT, Bloomberg)

Memento Susie McKinnon has a newly discovered condition that prevents her from forming autobiographical memories. "There's a difference between knowing something you've learned or memorised and being able to really remember it, or relive it - to know what it was like when I was younger," she says. "To remember myself at any other age or body shape or height from now - I can't experience that kind of stuff." (NYMag)

Video of the day

Baby, you can drive my car Freightliner plans to take some strain off its truckers with a self-driving truck. Robert Wright takes a ride on one. (FT)

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