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Bank of England governor Mark Carney on Tuesday cited a “challenging” outlook for financial stability and told banks to boost lending and stop building up their rainy-day fund, to free up £150bn for the wider economy. Sterling fell to new post-Brexit lows amid continued fears for the economy.

Tory politicians prepared for the first ballot in their search for a new leader. Home secretary Theresa May remains the frontrunner but Boris Johnson has thrown his support behind Andrea Leadsom, undermining the chances of former Brexit ally, Michael Gove, to win the leadership. Labour remains consumed by infighting, with leader Jeremy Corbyn hanging on in office, despite the concerted effort of the Parliamentary Labour party to unseat him.

In the news

US crude reserves The US now holds more oil reserves than Saudi Arabia and Russia, the first time it has surpassed those held by the world’s biggest exporting nations, according to a new study. Rystad Energy estimates recoverable oil in the US from existing fields, discoveries and yet undiscovered areas amounts to 264bn barrels. The figure surpasses Saudi Arabia’s 212bn and Russia’s 256bn. (FT)

Goldman feels the pinch Goldman Sachs has ordered staff at its asset management division GSAM to tighten their belts, amid outflows and poor performance from some of its largest funds. An edict issued by management calls for GSAM’s 2,000 employees to curtail spending and includes a ban on all travel that is not associated with meeting clients and winning new business. (FT)

Isis’ Ramadan rampage Isis launched three attacks in Saudi Arabia on Monday, killing four people. The jihadis have spent the month of fasting in a ferocious campaign to prove that they are a force to be reckoned with despite losing about 47 per cent of their territory. But they are unlikely to be defeated without better international co-ordination, argues Jeffrey Sachs. (Al-Arabiya, Project Syndicate)

Crowdfunding political survival Brazil’s suspended president Dilma Rousseff is taking the idea of crowdfunding to new heights: she is raising funds to finance a campaign against her impending impeachment and revive her fading public profile. (FT)

Australia’s triple A rating at risk The country could lose its rare triple A credit rating after a tight general election raised questions about the next government’s ability to curb spending and bring down debt. The election result remained too close to call as counting of votes resumed on Tuesday morning. (WSJ, BBC)

It’s a big day for

EU-Canada trade Jean-Claude Juncker, the European Commission president, is preparing to ditch contentious plans to fast-track approval of a trade deal with Canada, in an eleventh-hour political retreat that followed staunch criticism from some European capitals. (FT)

Food for thought

Brexit and the memories of the Somme While the likes of Nigel Farage bask in the glory of their political triumph, it is important to realise this is a dangerous moment for Europe, writes Gideon Rachman. “We are faced with a choice between two paths. The first leads to reconciliation between the UK and the EU. The second leads to an increasingly confrontational relationship between Britain and continental Europe.” (FT)

Generation X: a report card Now settling into middle age, the representatives of Generation X— that elusive and ambivalent cohort born in the 1960s and 1970s — have ascended to the highest offices of state across the west. Their progress does not make for pleasant reading, writes Ludovic Hunter-Tilney. (FT)

Paying for the downside of tech San Francisco is considering a tax on tech companies to fund low-income housing and programmes to help the homeless. One activist accuses chief executives of doing more to combat poverty in Africa than in their own city. (NYT)

Italy’s Brexit threat The UK’s vote to leave the EU leaves Italy’s debt-ridden banks exposed and could lead to a banking crisis that would hit the eurozone as a whole. (WSJ)

Happiness at work Mastery, belonging, autonomy and a “mindset of abundance” are the four elements of a fulfilling job, according to “happiness researcher” Raj Raghunathan. (Quartz)

Video of the day

The tax haven effect The UK is a well-established offshore financial centre but does it have a future as a tax haven after the Brexit vote? The FT finds out at the Festival of Finance. (FT)

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