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Hillary Clinton called on Bernie Sanders to help “unify the Democratic party” after Tuesday’s primaries in California and New Jersey when she is expected to clinch the nomination. The former secretary of state was left just shy of the 2,383 delegates needed on Monday, having won the latest primary in Puerto Rico with just over 60 per cent of the vote, according to CNN projections.
Clinton has brought new weapons to her campaign against Republican nominee Donald Trump, by focusing on ethics in last week’s foreign policy speech and by her use of stinging invective. But by launching insults, “she has crossed a line she cannot uncross”, warns the FT’s Ed Luce. “If you get into a street fight with a thug, be sure to have every weapon to hand. If you use your fists, he will put on his knuckle duster. If you land a blow, he will pull out a knife. Mrs Clinton is playing on Mr Trump’s territory. He will always come back with something worse. (FT) Sign up for our daily US politics newsletter here.
In the news
McKinsey’s secret investment arm One of the world's most influential consulting firms operates a secretive internal investment arm that manages the fortunes of its past and present partners, raising questions over possible conflicts of interest between its investment strategies and its clients’ needs. The fund has generated hundreds of millions of dollars in profits for its clients over three decades, and has made money in 24 of the past 25 years. (FT)
Kuczynski edges ahead in Peru poll With 51.7 per cent of votes counted Pedro Pablo Kuczynski, a former Wall Street banker and World Bank economist, was leading with 50.59 per cent in Peru’s presidential run-off, ahead of Keiko Fujimori on 49.40. Quick counts by pollsters had the rivals hovering on similar percentages. Ms Fujimori lost her lead after Mr Kuczynski ran a campaign focused on her links to her imprisoned father’s regime, alongside allegations of money laundering involving her party’s general secretary. (FT)
The kids love Goldman Sachs Forget about “changing the world” in Silicon Valley, college graduates are just fine about making money the old-fashioned way: the Wall Street bank has attracted more than a quarter of a million job applications this summer. (FT)
Pearls within swine Scientists in the US are trying to grow human organs inside pigs as part of research aimed at overcoming the worldwide shortage of transplant organs. (BBC)
The billionaires’ quant fund Google’s Eric Schmidt and a clutch of billionaires have backed a new quantitative hedge fund that mines global shipping data to track and trade international commodity flows, underscoring the burgeoning interest in technology-driven approaches to investing as traditional hedge funds fall out of favour. (FT)
It’s a big day for
US-China relations Expect cyber security and tensions in the South China Sea to be top of the agenda as US Treasury secretary Jack Lew and secretary of state John Kerry visit Beijing. (FT)
Narendra Modi The Indian prime minister will use his three-day visit to the US to cement ties. (WSJ)
Food for thought
Why do markets ignore Trump risk? Former US Treasury secretary Lawrence Summers finds it surprising that US and global markets seem much less sensitive to “Trump risk” than they are to “Brexit risk”. While every Fed watcher comments on the implications of Britain leaving the European Union, few, if any, comment on the possible consequences of a victory for Donald Trump in November. “Yet, as great as the risks of Brexit are to the British economy, I believe the risks to the US and global economies of Mr Trump’s election as president are far greater. If he is elected, I would expect a protracted recession to begin within 18 months. The damage would be felt far beyond the United States.” (FT)
Belgium: Journeys to jihad The trial of one of Brussels’ most notorious terror recruiters revealed the depth of the challenges facing Belgian security forces. (FT)
High-tech whimsy meets haute couture Robots are now a fashion statement, at least to some innovative minds in Japan. One example: a skirt with two robotic arms sticking out. The six-jointed robotic arms move smoothly up and down by remote control. The hands can rotate 180 degrees and the elbows bend 90 degrees. “With an additional arm, you can do many different things,” said Kiyoyuki Amano, who came up with the skirt in April together with a workshop in Yokohama and others. “I made a robot that can support young girls’ lives,” he said. (NAR)
How US wealthy hid their money A New York Times examination of the Panama papers finds that Mossack Fonseca had at least 2,400 US-based clients over the past decade, and set up at least 2,800 companies on their behalf in the British Virgin Islands, Panama, the Seychelles and other jurisdictions that specialise in helping hide wealth. While many of these transactions were legal, the documents also show how Mossack Fonseca offered a how-to guide of sorts on skirting or evading US tax and financial disclosure laws. (NYT)
The Ayatollah’s secret engagement with the US Ruhollah Khomeini, founder of Iran’s Islamic Republic, called the US “the Great Satan”. But on the eve of his return following the revolution, he made a deal with the devil. (BBC)
Swiss vote fuels basic income debate Switzerland’s Universal Basic Income referendum matters, even though it failed, writes Jim Pugh. At the end of last month, Y Combinator announced an experiment with basic income in Oakland — saying it would pay basic income to a group of people over a five-year period and study the effects. “As governments and businesses in the United States, Canada, the United Kingdom, Finland and beyond test and debate basic income, expect to see a lot more on this topic.” (Quartz)
Video of the day
America’s jobs slowdown FT Alphaville writers Cardiff Garcia and Matt Klein discuss the latest US employment report, what it says about the economy, and how it might affect Federal Reserve policy. (FT)