Good morning. We start the week with news that has thrown November’s US presidential race into turmoil: Joe Biden has dropped out.
After weeks of overwhelming pressure from fellow Democrats, the president yesterday abandoned his re-election bid and endorsed Kamala Harris to succeed him, saying it was “in the best interest of my party and the country for me to stand down”.
Biden, who has not been seen in public since he was diagnosed with Covid-19 on Wednesday, announced his decision to quit the race in a letter published to social media. He said he would speak to the country “later this week in more detail”.
Meanwhile, Harris has secured the backing of senior Democrats and some of the party’s’ biggest donors, strengthening the vice-president’s position as the favourite to win the party’s nomination.
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What’s next?: Biden’s exit triggers a rush to endorse a new Democratic candidate. Here’s how it will happen.
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A career of firsts: Now the party’s frontrunner for the nomination, Kamala Harris would be the first female US president if elected. But her selection is by no means a done deal.
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Uncharted territory: Democrats must now decide whether to unify around Harris or turn next month’s party convention into a divisive battle, writes Edward Luce.
Biden’s move has made history and upset the presidential election. With less than four months to go before Americans head to the polls, keep up to date with our US Election Countdown newsletter. And here’s what I’ll be keeping an eye on today:
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WTO: The World Trade Organization’s general council meets in Geneva.
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Results: Ryanair and Verizon report.
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Trump shooting: Secret Service director Kimberly Cheatle is set to testify in a US House oversight committee hearing on the assassination attempt on the former president.
Five more top stories
1. Mysterious buyers with suspected links to Russia have begun amassing dozens of vessels capable of carrying liquefied natural gas in moves that suggest Moscow is expanding its “dark fleet” of energy tankers. The clutch of previously unknown companies are largely registered in the United Arab Emirates, shipping industry insiders said. More details on the acquisition spree.
2. Exclusive: EY’s former Germany boss Hubert Barth is to challenge a €300,000 fine for alleged violations of professional duties during the Big Four firm’s audits of Wirecard, which collapsed four years ago in one of Europe’s biggest accounting scandals. Read the full story.
3. Cyber security watchdogs have warned of phishing scams in the wake of Friday’s global IT outage, with a rise in malicious sites claiming to fix glitches. US, UK and Australian cyber defence agencies all issued warnings over the weekend as airlines and healthcare services were among those still grappling with the consequences.
4. Exclusive: The UK economy will need to grow at three times this year’s expected rate if the new Labour government is to avoid a hole in the public finances, the IMF has warned, in a stark illustration of the challenges facing Rachel Reeves as she prepares for a landmark Budget this autumn. Sam Fleming has more details from London.
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More on Reeves: The chancellor will speak about Labour’s “spending inheritance” at the end of the month in an effort to soften opinion for a tough autumn Budget and possible tax rises.
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UK markets: The number of small companies quoted on London’s Aim exchange has plunged to its lowest level in more than 20 years.
5. Google co-founder Sergey Brin is bankrolling the development of a hallucinogen derived from a rainforest shrub for use as a mental health treatment. Ibogaine, native to west Africa, has historically been used as part of spiritual rituals by forest-dwelling tribes in Gabon due to its mind-altering effects. Here’s more on Silicon Valley’s latest deal in the nascent psychedelics sector.
The Big Read
Germany is already increasingly alone in the world. To the east it faces an expansionist Russia, while its western neighbour and closest ally France is mired in political uncertainty. Now, Berlin also has to brace for the possible return of a US president with an even more unashamedly protectionist economic policy than during his first term, including the threat of tariffs that could wreak huge damage on its export-driven economy. Here’s how German officials are preparing for a second Donald Trump presidency.
We’re also reading . . .
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Israel-Hamas war: Israeli evacuation orders are forcing Palestinians in Gaza on a seemingly never-ending search for shelter.
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Indian politics: Narendra Modi faces an early test to his third term as his new coalition partners make demands ahead of the prime minister’s budget.
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Paris Olympics: Police are locking down large swaths of the city ahead of the Games, as France wrestles with one of its biggest security challenges.
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Solar power: A global supply glut has pummelled solar panel prices over the past two years but also increased the number of installations.
Chart of the day
The pound has been the best-performing major developed market currency this year, boosted by a resilient economy and hopes for political stability. Wall Street banks are betting that sterling will extend the winning run, which has carried it to its strongest level since the 2016 Brexit referendum.
Take a break from the news
The Bootleg Beatles are Britain’s oldest, most famous and most successful tribute act, performing more than 5,000 times worldwide since 1980. FT Magazine’s Kieran Morris follows a band that may have one of the best jobs in rock.
Additional contributions from Annie Jonas and Emily Goldberg
