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Boris Johnson on Wednesday signalled the end of a tumultuous three-year reign as Britain’s prime minister, defending his record and blaming Conservative MPs for their “eccentric” decision to force him from office.
He quit as Conservative leader but defied pressure to step down immediately as prime minister, saying he would remain until his successor is chosen, probably in September. Read his full resignation speech here.
Conservative MPs hoping to succeed Johnson as Tory leader were preparing their campaigns, with former chancellor Rishi Sunak, foreign secretary Liz Truss and defence secretary Ben Wallace among the likely contenders. One of his successor’s challenges: he or she will have to repair Britain’s status abroad, writes Gideon Rachman.
On Thursday one of the most surreal cabinet meetings in British history convened, just hours after he announced he was quitting as Conservative party leader.
The cast sitting around the coffin-shaped table were the last vestiges of Johnson’s ministry, the survivors in a political disaster movie, the people charged with keeping the show on the road. Johnson urged his shell-shocked caretaker cabinet to carry on “delivering for the British people”.
Read more
Opinion: UK politics commentator Stephen Bush considers the next steps for the Conservative party and the country. Sign up here for Stephen’s newsletter Inside Politics.
Go deeper: Boris Johnson was the entertainer who tried to defy political gravity. He once united people in amusement, but ended up uniting them in contempt.
Business: British business leaders welcomed Johnson’s resignation, calling for a swift transition to a new administration.
FT View: But it is high time for the needs of the country, not the Conservative party, to come first, writes our editorial board.
Thanks for reading FirstFT Asia and here is the rest of the day’s news — Emily
Five more stories in the news
1. Former Theranos exec Sunny Balwani convicted of fraud Former Theranos president Ramesh “Sunny” Balwani has been convicted of fraud in connection with his role at the now-defunct blood testing start-up founded by his former girlfriend and business partner Elizabeth Holmes.
Balwani was convicted on all 12 counts of fraud and conspiracy.
2. Rajeev Misra to launch new $6bn fund The trader who helped transform Japan’s SoftBank into the biggest and most controversial technology investor is launching a new $6bn fund backed by a trio of Abu Dhabi investment groups. Misra, a former Deutsche Bank and UBS executive, told the Financial Times that he would remain involved with SoftBank at a senior level but that he was excited about his new venture.
3. Evergrande launches first electric car to shore up revenue The electric vehicle unit of indebted Chinese property developer Evergrande has launched its first car and begun taking orders, as it pivots to carmaking in an attempt to shore up revenues. The order announcement from Evergrande New Energy Vehicle Group came in the same week the developer delayed one of its offshore dollar bond payments again.
4. Ardern warns against ‘self-fulfilling prophesy’ of war in Pacific New Zealand prime minister Jacinda Ardern has called for a de-escalation of the tensions between China and the US and its allies in the Indo-Pacific, warning that the region risked embracing a “self-fulfilling prophesy” and sparking a conflict. Ardern stressed that Beijing had a “crucial role to play” in upholding the world order.
5. Samsung’s subdued profits reflect fading electronics surge Samsung Electronics has reported a smaller-than-expected operating profit for the second quarter as higher inflation damps consumer demand for mobile phones and other electronic gadgets. The company is bracing for waning demand in response to rapid price rises worldwide following the pandemic-driven surge in the tech sector over the past two years.
The days ahead
China CPI and PPI June consumer price index and producer price index figures are set to be released. Inflation in China has been picking up.
Hinkley Point B begins shutdown The UK nuclear plant is expected to begin its shutdown despite concerns of blackouts later this year
Wimbledon championships The women’s tennis championship final will take place on Saturday, followed by the men on Sunday.
Japan’s upper house election On Sunday half the members of Japan’s less powerful upper house of parliament will be elected through a mix of constituency and proportional representation votes. Recent polls suggest that the LDP and its coalition partner Komeito will win a majority of the 125 seats up for grabs on the back of steady public support for prime minister Fumio Kishida.
How can business leaders adapt and prepare for unforeseen global events? Senior industry leaders share their insights in today’s event, Capitalising On Disruption To Create Business Opportunities. Attend for free here.
What else we’re reading
New Covid variants threaten China’s vaccine hopes China is making progress in efforts to develop a homegrown messenger RNA Covid-19 vaccine, widely seen as essential to any shift away from President Xi Jinping’s economically costly zero-Covid policy. But experts warn that China risks being outpaced by rapid mutations of the Omicron coronavirus variant.
Fruit becomes a luxury under Erdoğan An old saying has become popular in Turkey again: “There is no government that cannot be brought down by an empty cooking pot.” Recep Tayyip Erdoğan might be expected to heed that warning as astronomical inflation pushes up the prices of essential food.
How China’s BYD played catch-up with Tesla Before this week the Chinese carmaker had already overtaken some of the best-known marques in the industry including Volkswagen, Ford and General Motors. Industry insiders, executives and academics explain the secret of the company’s success as it becomes the biggest maker of electric cars.
Opinion: Tesla cannot unsynch from the politics of US-China relations, writes John Thornhill.
A coup for the right: Justice Thomas’s Supreme Court America’s highest court has lurched to the extreme right, a stunning transformation that has turned what the Founders called “the least dangerous branch” of government into anything but. Under Clarence Thomas, this brand of conservatism will shape the court for decades to come, writes Jill Abramson, author and former New York Times executive editor.
What can pension savers do in bleak markets? It’s natural for retirement savers to feel depressed, not just about the present but also about future prospects. And it’s particularly gloomy because the ballast traditionally provided by bonds when equities fall can no longer be taken for granted. There are ways to manage inflation and recession, says Don Ezra, but safety comes at a price.
Travel
As Sri Lanka’s fuel supplies have dwindled to almost nothing over the past three months, fuel queues have become an ordinary sight. In the capital Colombo, fuel queues have lasted three or four days. Tourist dollars are desperately needed, but visitors face a dilemma as resources dwindle and inflation soars.
Source: Economy - ft.com
