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David Cameron used his final EU summit to vow the UK would not turn its back on its European allies despite last week’s referendum to pull Britain out of the bloc. He received a frosty reception in Brussels, as the EU capital was riven over the departure of one of its largest members, but global markets seemed to stabilise and sterling bounced back from sharp falls.

Angela Merkel warned the UK that there could be no “cherry picking” in its Brexit negotiations in a tough response to Leave campaigners’ hopes of securing access to the internal market while limiting freedom of movement. But she also urged the UK to be given time to decide how it would exit, while the European Parliament called for a “swift Brexit to end uncertainty”. 

Alan Beattie argues that the German chancellor’s talent for procrastination will be crucial because Britain needs time. “While lesser politicians instinctively look for a rapid solution to problems, Ms Merkel specialises in finding previously uncharted stretches of road down which a can may be kicked.”

Whenever plans do kick into gear, Wolfgang Münchau thinks the Norway option will be the best available for the UK.

Meanwhile, Jeremy Corbyn refused to step down as leader of the Labour party even after an overwhelming vote of no-confidence — by 172 to 40 votes — and a wave of resignations from his front bench.

Martin Wolf has a bit of advice for a potential future Prime Minister Boris Johnson: “Forget the whole thing or, alternatively, call another referendum, merely to make sure the people remained as determined.”

Find our full coverage of the aftermath of Brexit here and in our daily Brussels Briefing. You can follow by-the-minute updates on our live blog.

In the news

At least 10 dead in Istanbul airport attack Two explosions rocked Istanbul’s Ataturk airport late on Tuesday, causing multiple injuries, according to officials. Turkey has been the target of a string of terror attacks over the past year. (FT)

Mario Draghi calls for global alignment The ECB chief called on economic officials to join forces, saying a shift toward a more global view would prevent some of the worst side-effects of aggressive monetary easing by central banks. (FT)

GOP inquiry into Benghazi blames red tape The latest House report blamed bureaucratic delays for holding up an effort to help the four Americans who died but did not find new evidence of mistakes or wrongdoing by Hillary Clinton, then the secretary of state. Sign up for our daily US politics newsletter here(FT)

VW agrees $14.7bn deal Volkswagen has agreed to a $14.7bn US compensation and investment package as the German carmaker deals with the fallout of the emissions data-rigging scandal, according to people familiar with the matter. (FT)

Boeing’s inside man Thomas Pickering, the respected former US ambassador to Israel and the UN, advocated forcefully for the Iran nuclear deal, testifying before Congress, contacting high-level officials and penning op-eds. He was also a paid consultant for Boeing, which has just announced a $25bn deal with Iran Air. (Daily Beast)

Ikea recalls 29m dressers The Malm series has been linked to the deaths of three children, who were crushed after the dressers tipped over. (NBC)

Key supplier says Apple ‘conservative’ on new orders Advanced Semiconductor Engineering, the world's biggest chip assembler and tester, said the tech giant was placing smaller orders compared to last year, in a sign that the company is responding to slowing iPhone demand. (NAR)

It’s a big day for

The ‘Three Amigos’ That is, US President Barack Obama, Canadian Prime Minister Justin Trudeau and Mexican President Enrique Peña Nieto, will meet for the final time, with discussions focused on trade. (Reuters)

Food for thought

Communication from the deep There is striking new evidence that sperm whales form clans with diverse cultures and languages, which they use to manage family relationships. (Ars Technica)

Eyeing the Emerald Isle Ireland’s foreign minister has appealed to people in the UK to stop rushing for Irish passports after a surge in applications following the Brexit referendum threatened to overwhelm the country’s hard-pressed consular offices. (FT)

To live and die in the South Bronx A deeply-reported look at the life and death of a New York City drug dealer. (NYT)

The Brexit graduate gap Voters without degrees were more likely to back leaving the EU, figures suggest, but there are exceptions. (BBC Magazine)

Unicorn Valley no more US tech start-ups are increasingly focused on actual profits, rather than simply rapid revenue growth. (FT)

Video of the day

Brexit briefing: Martin Wolf 

The FT’s chief economics commentator on the impact of Brexit on banks, politics and the future of Britain. (FT)

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