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The financial and political fallout from Brexit continued on Tuesday as Prime Minister David Cameron headed for Brussels for what is likely to be a bruising summit with EU leaders, who are in no mood to reward the UK for its decision to leave the union. Commission chief Jean-Claude Juncker told the European Parliament that London must clarify its position as soon as possible to avoid uncertainty.
Brexit tremors have sent sterling tumbling, although the currency rebounded a little during early Tuesday trading. The pound has now shed 10.5 per cent since the close on Thursday. While economists were revising down their forecasts for economic growth in countries as far afield as Hong Kong and Singapore, investors’ nerves appeared a little steadier, with the FTSE 100 share index in London up 2.5 per cent on Tuesday.
Meanwhile, the UK’s political parties continued to be roiled by leadership battles. Labour’s Jeremy Corbyn is digging in as labour leader despite the resignations of 47 members of his front bench and an expected vote of no-confidence from the majority of his MPs. Conservative party grandees have announced they want a fast track leadership contest that will choose a prime minister by September 2, a development that could help Boris Johnson in his bid to succeed Mr Cameron. (Guardian, FT)
Still, some commentators doubt whether Brexit could even happen, among them Gideon Rachman, who suggests a second referendum fought around the issue of an emergency brake on free movement of people could produce a different result. Other commentators say that Article 50 may never be invoked. (NAR, FT)
In the news
Iceland keeps its cool England made their second exit from Europe in four days against a country with just 330,000 inhabitants, after a 2-1 defeat by Iceland saw them knocked out of the Euro 2016 football tournament. Roy Hodgson has resigned as England manager. (FT)
Stocks hammered by Brexit vote Global stock markets have lost a record $3tn in the past two trading days after a sharp sell-off in equities around the world in response to the UK referendum vote to leave the EU. (FT)
VW agrees $14.7bn deal Volkswagen has agreed to a $14.7bn US compensation and investment package as the German carmaker deals with the fallout of the emissions data-rigging scandal, according to people familiar with the matter. (FT)
EgyptAir crash mystery could be revealed The damaged flight data recorder from the EgyptAir Airbus 320 that crashed last month has been successfully repaired in France, Egyptian investigators say. Work on the Airbus A320’s cockpit voice recorder will begin “within hours”. (BBC)
It’s a big day for
David Cameron He will make a final, painful visit to a Brussels summit as UK prime minister where he is expected to urge European leaders to learn the lessons of Britain’s vote to leave the EU. British officials say the prime minister will give his analysis of the 52-48 per cent victory for the Leave side at a summit dinner, during which he will urge his EU partners to begin exit talks with Britain “in a constructive spirit”. (FT)
Food for thought
Communication from the deep There is striking new evidence that sperm whales form clans with diverse cultures and languages, which they use to manage family relationships. (Ars Technica)
UK trade, aid and influence in Africa The UK government and institutions have been important in developing a progressive EU agenda on Africa and this could change with Britain’s withdrawal from the union. (African Arguments)
French language Brexit boost French politicians consider whether a UK departure from the EU could be a chance to finally establish French as the EU’s main official language. (FT)
Unicorn Valley no more US tech start-ups are increasingly focused on actual profits, rather than simply rapid revenue growth. (FT)
Sonic boom How we have weaponised music, from pop songs as torture during the Iraq war to trumpets at the walls of Jericho. (New Yorker)
Video of the day
John Authers analyses another tough day on Wall Street, as world markets battle to understand the implications of the UK’s Brexit vote. (FT)