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The EU has hardened its stance against any Brexit concessions, dashing hopes the UK will be able to soften its exit from the EU.

In their first summit without the presence of the UK, EU leaders rebuffed a plea by UK prime minister David Cameron over migration and warned that if businesses want access to Europe’s single market, the country must also accept European workers.

Global markets continued to stabilise on Wednesday with the FTSE 100 recovering all losses since the shock of the EU referendum result and sterling briefly rallying above the $1.35 level against the dollar.

Senior bankers say the financial system held up well in the wake of the result. The heads of the five major UK banks were called to the Bank of England on Wednesday to discuss the impact.

Meanwhile, the US has urged EU leaders to “ease off austerity” in response to the Brexit fallout and focus on economic growth to contain the populism that provoked Britain to leave the EU. The Obama administration also encouraged the UK to “raise its game” in Nato through higher defence spending in order to maintain international influence. (FT, AP)

Find our full coverage of the aftermath of Brexit here and in our daily Brussels Briefing.

In the news

Free trade and populism The leaders of the US, Canada and Mexico have urged further North American integration amid populist criticisms of trade that have been fuelled by Brexit and Mr Trump. (FT)

China’s megadeals fail to offset slowdown M&A activity has fallen in US and Europe amid political instability as confidence that China’s corporations can drive further dealmaking has waned (FT)

Bombers kill at least 41 at Istanbul airport The triple suicide bombing is one of the deadliest attacks to hit Turkey over the past year and the fourth major bombing in Istanbul in just six months. President Erdogan will need assistance if it is to defeat Isis, writes David Gardner. (FT)

US election is referendum on global order While Hillary Clinton has positioned herself as guardian of the west’s post-second world war geopolitical and economic order, Donald Trump has cast himself as an advocate of a return to the pre-globalisation era, with an “America first” mentality both in economics and foreign affairs. (FT)

It's a big day for

India’s 10m civil servants The government has approved a 23 per cent rise in salaries, allowances and pensions for current and former civil servants. The once-in-a-decade increase will cost about $15bn and is aimed at boosting private consumption. (FT)

Food for thought

Citizenship for the wealthy There is a new and fast-growing class of “economic citizens” who are buying citizenship or residency rights to places like Malta to allow them to live and work in any part of the EU. (FT)

Top priorities Facebook is altering its news feed algorithm to prioritise posts from friends and family over publishers and corporations. The social network has warned content providers it could cause a decline in how many people see and click posts. (FT)

China’s internet tsar steps down The man behind the country’s aggressive crackdown on social media and Google is being replaced by a former minister of propaganda. The choice of successor suggests there will not be a loosening of controls. (FT)

Suspicious tweets Visitors to the US may be asked to voluntarily disclose their social media accounts to assist in screening for terrorism ties. The proposed legislation was introduced after it was discovered the couple behind the San Bernardino terrorist attack had exchanged messages online. (NYT)

Lush lotus leaves New aerial photos show lotus leaves blooming at the Tai’erzhuang Wetland Park in China’s Shandong province. The park has more than 320 kinds of flowers.

Video of the day

Australia election Malcolm Turnbull’s Liberal party was expected to win comfortably, but that has not been how the campaign has gone. The FT’s Jamie Smyth explains why. (FT)

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