Good morning, Quartz readers!
What to watch for today
The UK gets a new prime minister. David Cameron will submit his resignation to the queen and move out of 10 Downing Street to make room for Theresa May, whose first job will be to name her cabinet. Only the second woman ever to lead the country, May faces the huge challenge of managing Britain’s exit from the EU.
Yum Brands tries to heat up lukewarm results. The owner of KFC, Pizza Hut, and Taco Bell reports earnings after US markets close. The company is struggling with intense global competition as it prepares to spin off its Asian operations later this year.
Japan gets even gloomier about the economy. Prime minister Shinzo Abe’s government is planning to cut its inflation forecasts to 1.4% for the year, well below its 2% target, Reuters reports. That could raise the likelihood of expanded stimulus efforts by the Bank of Japan.
While you were sleeping
The UK’s Labour Party began a bruising leadership contest. Despite an overwhelming no-confidence vote after the Brexit referendum, party leader Jeremy Corbyn was controversially granted the automatic right to be on the leadership ballot by Labour’s executive council after being challenged by Angela Eagle. A relative unknown, Owen Smith, joined the contest today.
Egypt was accused of disappearing hundreds of people. A report from Amnesty International said the country’s security forces tortured and forcibly made hundreds of people disappear in an attempt to tackle dissent. Over 1,000 people have been killed and tens of thousands are believed to have been imprisoned since president Abdul Fattah al-Sisi overthrew Mohammed Morsi in 2013.
Burberry felt a chill wind. The British luxury fashion company reported a 3% drop in like-for-like sales in the first quarter as it continued to weather a sales decline in its important Asian markets. Shareholders will be hoping new CEO Marco Gobbetti can turn the company’s fortunes around (paywall) when he takes over from Christopher Bailey next year.
Beijing ramped up its aggressive rhetoric. Vice foreign minister Liu Zhenmin said that the country could set up an air defense zone over the sea if it faced threats, after a UN tribunal ruled it didn’t control the South China Sea. Taiwan showed rare solidarity with China, and responded to the international tribunal’s ruling by sending a warship to the island of Itu Aba, which it occupies.
Third time lucky for Steinhoff. After missing out on buying Britain’s Home Retail and UK-listed retailer Darty, the South African group finally reached a deal to acquire discount chain Poundland for $794 million. Shares in Poundland, which have fallen 40% since the company went public in 2014, rose 12% today on the takeover news.
Quartz obsession interlude
Alison Griswold on why hotels should really start worrying about Airbnb: “People who booked on Airbnb, the argument went, were casual vacationers… But partnerships with AmEX GBT, BCD Travel, and Carlson Wagonlit Travel show that Airbnb for Business, if still young, is on its way to being taken seriously by the corporate community.” Read more here.
Matters of debate
Truth doesn’t matter anymore. In the digital age, opinions and rumors are just as important.
Why the rise of female politicians? Perhaps because they tend to be non-ideological, compromise-oriented leaders.
Brexit is the “modern Magna Carta.” So says the chair of a chain of British pubs.
Surprising discoveries
Drones are dropping vaccine-covered M&Ms in Montana. The government hopes the drug-laced candies will save the endangered black-footed ferret.
Your personal chatbot is actually a human. Low-paid workers are powering popular services from Facebook and other companies.
Italian police arrested around half the municipal employees of a small town for bunking off work. One man put a cardboard box over his head to avoid detection.
College-educated mobsters made more money. When wiseguys became even wiser.
Dinosaurs probably didn’t roar—they cooed. Fossils of their vocal organs resemble those of birds.
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