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This is a tale of two banks. Banco Santander has agreed to buy out its Spanish domestic rival, Banco Popular, for the symbolic sum of €1. But this is also a tale of the eurozone’s post-crisis bank bailout regime. The EU’s Single Resolution Board was created in 2015 to oversee failing banks in the single currency area. Declaring Banco Popular “failing or likely to fail” is its first substantive action. It imposed heavy losses on the lender’s shareholders and junior bondholders before the transfer to Santander. The combination will make Santander the dominant bank in Spain, with one-fifth of the credit market and a one-quarter share of SME lending, double the nearest competitor. (FT)

In the news

Isis hits Iran
Isis has claimed responsibility for co-ordinated attacks in Iran. Gunmen attacked the parliament building in Tehran, and a female suicide bomber targeted the mausoleum of Ayatollah Khomeini, who led the 1979 Islamic revolution. At least seven people were killed. Isis has been expanding its campaign into Iran in recent months but it is the first time it has launched such an operation inside the country. (Reuters, Jazeera, Radio Free Europe)

Russia, Trump and Qatar
US investigators believe Russian hackers breached Qatar’s state news agency and planted a fake news report that contributed to a number of Gulf Arab nations cutting diplomatic ties with Doha. The US president’s public backing of the move to isolate Qatar stunned the top Republican senator on the foreign relations committee and has empowered Saudi Arabia, the regional heavyweight leading the anti-Qatar charge. For Doha, the cost of isolation is high. The stock exchange has fallen and export costs are set to rise. (CNN, FT, The Hill, WaPo)

Voting looms in UK election
It is the final day of a turbulent British election campaign marred by two terrorist attacks and overshadowed by Brexit. Prime Minister Theresa May has ramped up her anti-terror rhetoric in a final push for votes. Her Conservative party is confident that she is heading for a solid election victory in spite of a struggling campaign. But its rival, the Labour party, has closed the polling gap. Should Labour win, this is what financial markets are likely to do. And here is why the UK election matters to the rest of the world. (FT, Economist)

More terror arrests
British police have made further arrests related to the London and Manchester terror attacks. They come amid questions about why UK intelligence services failed to act on information that London Bridge attackers Khuram Shazad Butt and Youssef Zagbha posed a threat. Here is a look at the al-Muhajiroun network at the heart of British extremism. (FT)

Heads roll at Uber
The company has fired more than 20 employees after an investigation into sexual harassment claims, according to people close to the company, as the ride-sharing app maker tries to draw a line after a series of crises. (FT)

Worse than Watergate
The former director of US national intelligence says he believes the Watergate scandal of the 1970s “pales” in comparison to the assault on US institutions currently being perpetrated by Russia and President Donald Trump. In a speech in Australia, James Clapper said he was “very concerned” by the actions of Mr Trump, including his sharing of intelligence with the Russians and his firing of James Comey, director of the Federal Bureau of Investigation. (FT)

The day ahead

US credit release
Economists forecast that a US Federal Reserve report will show US consumer borrowing cooled in April.

AI summit in Geneva
UN agencies, AI experts, policymakers and industrialists convene in Switzerland for the Good Global summit. They will address how the AI revolution can help the 3bn people globally who live in poverty. (Nature.com)

Keep up with the important business, economic and political stories in the coming days with the FT’s Week Ahead.

What we’re reading

Keeping Israel connected
Half a century after the six-day war changed the course of history — not least in the Middle East — Israel’s high-tech defence industries are bolstering diplomatic and commercial ties and helping to stave off political isolation over the country’s occupation of Palestinian land. (FT)

Bad judgment on the Paris accord
Martin Wolf on how the US withdrawal from a shared commitment to protect the planet has disturbing echoes: “In the 1920s, the US repudiated the League of Nations. That led to the collapse of Europe’s post-first world war settlement. Now, it is withdrawing from a shared commitment to protect our planet.” (FT)

How do we benefit from the ‘internet of things’?
Interconnected technology is already part of our lives — it orders our groceries, monitors our cities and sucks up vast amounts of data along the way. The promise is that it will benefit us all — but does it? (Guardian)

Making workplaces cool
Choosy millennials are pushing Asian companies to change the design of their offices. Forget rows of desks; think quiet spaces, coffee bars, canteens, massage rooms, game rooms, bike racks, fitness centres, dry cleaning and day care centres. (NAR)

Dylan and saying the unsayable
Bob Dylan’s newly released Nobel Lecture in Literature is a fittingly odd culmination of the singer’s saga with the Nobel Committee. (Atlantic)

Learning from the Museum of Failure
The exhibition opens today in Sweden and highlights the danger in consumer companies becoming dependent on innovation for growth. The museum features such unloved brand extensions as Colgate’s Beef Lasagne, Coca-Cola’s BlaK coffee beverage and Harley-Davidson’s motorcycle-inspired perfume. (FT) ​​

Video of the day

How might Qatar affect energy supplies?
The FT's deputy commodities editor explains the implications of the Qatar crisis for the logistical link in Middle East energy supplies and for the Opec deal to reduce oil production levels. (FT)

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