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The week ended on a gloomy note in the UK, as the repercussions of the Brexit vote buffeted the country. The country’s labour market went into “freefall” in July, according to a survey of recruitment consultancies released on Friday.
Meanwhile, Goldman Sachs has said the UK’s vote to leave the EU could force it to “restructure” some of its UK operations, in one of the clearest signs from a major Wall Street institution that it is preparing specific measures following the landmark vote.
On Thursday the Bank of England slashed its UK growth forecasts and launched a huge stimulus package as it attempts to mitigate the damage it judges the Brexit vote will inflict on the UK economy. Policymakers cut interest rates to a record low of 0.25 per cent, while signalling there are more cuts in the pipeline. (FT) Read our new daily Brexit Briefing, or forward to other FT subscribers who can sign up to receive it daily by email here.
In the news
ANC suffers poll blow South Africa’s ruling African National Congress party has suffered its worst election result since it came to power in 1994, threatening its rule in several of the country’s biggest cities. Its share of the vote in local elections sank to 55 per cent or below in a humiliation for President Jacob Zuma, who has survived a number of scandals and been blamed by many for overseeing a corrupt administration that has betrayed the party’s core principles. (FT)
Singapore attack foiled Authorities in Jakarta have arrested six suspects for plotting to attack Singapore from an Indonesian island. Security officials say the men are members of local terror cells linked to Isis. (NAR)
Star designers side with Apple The likes of Paul Smith, Calvin Klein and Dieter Rams have joined the tech giant’s side in its long-running patent case against Samsung, which is being considered by the US Supreme Court. (FT)
Militant bust-up A dispute between Boko Haram and Isis has erupted with the global jihadi group naming a new leader for the Nigerian militant group. Boko Haram has wreaked havoc across northern Nigeria and factional fighting within the group has stymied efforts to release more than 200 schoolgirls kidnapped from the town of Chibok more than two years ago. (FT)
M&A attacks The cyber security industry is in the midst of a deals boom as private equity buyers hunt for cash-generating companies and smaller start-ups get snapped up for their technology or in-demand security engineers. (FT)
Gulen arrest warrant Turkey has issued an arrest warrant for Fethullah Gulen, the US-based cleric who President Recep Tayyip Erdogan accuses of masterminding last month’s coup attempt. The warrant is the next step towards a formal extradition request from the US. Mr Gulen has denied the charges. Meanwhile, the arrest or suspension of Turkish military leaders during a post coup purge has helped fuel a spike in fighting in neighbouring Syria. (NYT, WSJ)
It’s a big day for
Rio de Janeiro The Olympic Games will kick off with the opening ceremony after a rocky run-up raised questions about Brazil’s readiness to host the competition. (FT)
US employment is expected to have increased 180,000 in July, keeping the unemployment rate at 4.9 per cent. Here’s what to watch for in the latest jobs report. (FT)
Food for thought
The tools of modern terror A deep, illustrated dive into the history and proliferation of the AK-47 and AR-15 and how the rifles evolved into the weapons of choice for mass killers the world over. (NYT)
Decline of the start-up nation Although some cities — namely San Francisco, Boston and New York — are flourishing, a host of indicators suggest large tracts of America have lost some of the entrepreneurial verve that made the country the biggest economic success story of the past century. Can the nation of Ford and Jobs get its capitalist mojo back? (FT)
Your money or your life It seems that most people will choose money, if passengers fleeing burning aircraft are anything to go by. Most stop to grab hand luggage, even when trying to escape a burning plane, as shown by video footage of the Emirates 777 that crash-landed in Dubai this week. All 282 passengers survived but experts are agreed that stopping to pick up belongings puts lives at risk. None of them can agree on the best way to stop it. (Bloomberg)
Faux outrage in Washington The US establishment has struggled to explain why classified leaks by whistleblowers such as Edward Snowdon and Bradley Manning pose such a threat. (Foreign Affairs)
The trouble with ‘being seen’ Facebook, WhatsApp and many other platforms have introduced features that allow users to see when a message has been read. The FT’s Lisa Pollack is having none of it. (FT)
Video of the day
Three ways savers can ride BoE rate cut The Bank of England has cut interest rates by 25 basis points to 0.25 per cent, the first change in more than seven years. This means more pain for savers, so what can they do? FT Money editor Claer Barrett has three solutions. (FT)