Listen to this article
Sign up to receive FirstFT by email here
The fire-prone Galaxy Note 7 smartphone is being scrapped. The unprecedented move by Samsung Electronics is aimed at stemming reputational damage after investors wiped $19bn off its market value.
There were growing fears that the impact of spiralling safety issues with the Galaxy Note 7 could spread to the group’s other consumer products. One network reported a slowdown in S7 sales this week, adding it was too early to tell if there had been sustained damage to the Samsung brand.
Samsung’s safety crisis comes as rival devices from Apple and Google hit the market ahead of the crucial holiday sales season. (FT)
In the news
Price of a ‘hard Brexit’ Leaked papers from the UK cabinet warn that Britain could lose up to £66bn a year in tax revenues if it pursues a “hard Brexit”. The forecasts show that leaving the European single market could cause GDP to fall by as much as 9.5 per cent. (Times) Read our daily Brexit Briefing. FT subscribers can sign up to receive it daily by email here.
South African currency plunge South Africa’s currency plummeted on Tuesday after the country’s highly respected finance minister was summoned by prosecutors. Pravin Gordhan says “political mischief” is behind fraud charges relating to the establishment of an investigation unit in the tax department a decade ago. The rand fell more than 3 per cent against the US dollar. (Reuters, FT)
Paul Ryan abandons Trump The most senior elected Republican in Washington said he would no longer defend or campaign with Donald Trump, but he stopped short of revoking his endorsement. His announcement that he would focus on limiting electoral damage in congressional races reflects the widespread expectation in the Republican leadership that more embarrassing revelations about their candidate may appear ahead of the November 8 vote. (Politico) Keep track of the 2016 race with our daily US politics newsletter. Sign up here.
Lobster prices on a roll Lobster prices have risen to their highest level in more than a decade as demand for the crustacean grows thanks to the success of burger and lobster restaurants. This has spurred popularity of the lobster roll — which has become a hipster favourite. (FT)
Russia and Turkey agree gas pipeline deal The two nations have put tensions over Syria aside to agree a gas pipeline deal that opens a new route for Russian energy to western Europe. The agreement could redraw the energy map of Europe by allowing some of Russia’s gas to bypass Ukraine. (FT)
It’s a big day for
Smartphone makers Technology giants Apple and Samsung will take their fight over phone design to the US Supreme Court. It is the first design patent case the court will hear for more than a century. (FT)
Food for thought
Berlin’s war on gentrification As demand booms, officials want to maintain the city’s bohemian flavour and prevent the city from turning into another London. (FT)
The declining prestige of US democracy Gideon Rachman says what many of us are thinking: how did it come to this? “Sunday night’s spectacle is not just embarrassing for the US. America is widely regarded as the ‘leader of the free world’. So the rise of Mr Trump threatens to damage the prestige of democracy everywhere.” (FT)
The Yazidi women who escaped Isis Their fathers and brothers have been killed. The older women in their families have been taken. They were sold into sexual slavery by the jihadis, but they escaped. Theirs is a brutal story of slavery under Isis. (Daily Beast)
Dark skies for Japan’s solar market A government scheme to stimulate renewable energy investment has been too successful, leading to an oversupply of generating capacity and a drop in demand for solar panels. (NAR)
To wash or not to wash Scientists are split on how much and when handwashing will protect health. Epidemiologist Tim Spector gives some sensible advice. (The Conversation)
Video of the day
Yemen conflict turns more bloody The US is reviewing its backing for the Saudi-led coalition in Yemen, following the deadly attack on an opposition funeral gathering. (FT)