Uncertainty over Greece continues, brain power, and living history

The daily briefing “FirstFT” from the Financial Times.

Alexis Tsipras, Greece’s prime minister, appears to be preparing the nation for a snap general election this autumn after carrying out a government reshuffle that removed dissident ministers from his leftist Syriza party. The changes mean that Mr Tsipras now controls a cabinet more loyal to him and more committed to his path of adopting economic reforms demanded by Greece’s eurozone creditors in return for a new rescue deal worth up to EUR86bn.

Meanwhile Angela Merkel, the German chancellor, said that while discussions to ease debt repayment terms are an option if Athens complies with the conditions of a third bailout, Greece cannot receive a debt writedown as a member of the eurozone. A Grexit remains a strong possibility, writes the FT’s Wolfgang Münchau. (FT)

In the news:

Sorry after 70 years

Japan’s Mitsubishi has made a landmark apology for using US prisoners of war as forced labour during the second world war. It is believed to be the first such apology by a Japanese company, which was accepted by one of the few surviving former US prisoners forced to work in Japan. (BBC)

Austerity audit

The government’s GBP18bn austerity drive has had a dramatic impact onlocal services, analysis by the FT shows, in particular hitting services for pensioners and spending on child protection. (FT)

Winter comes to StanChart

Bill Winters , Standard Chartered’s new chief executive, is poised to stamp his authority on the emerging markets bank with a management shake-up that will strip deputy chief Mike Rees of his operational control. (FT)

More European debt talks

Ukraine has extended hastily assembled talks with creditors amid predictions that the country could default as early as Friday if an agreement is not reached. (FT)

It’s a big day for:

The US and Cuba, who will formally restore full diplomatic relations, ending more than five decades of estrangement.

French industrial group Alstom and Swiss private bank Julius Baer, who kick off the corporate earnings season in Europe this week.

Food for thought:

Living history

For 45 years, Mike Wooldridge reported on some of the world’s biggest news stories for the BBC. As the veteran correspondent leaves the organisation he looks back on his career. (BBC)

Brain power

It was seen as a “black hole” for drugs spending, as one clinical trial after another ended in failure. But there is now fresh hope of a treatment for Alzheimer’s disease. (FT)

You’re so vain

The number of unattractive employees hired says a lot about the company, argues Lucy Kellaway. Vainer companies could be missing out on a group of potential stars. (FT)

Not everyone can be an astronaut

A culture of over-praising children is dishonest and dangerous. It is far better to encourage their ambitions realistically instead. (Aeon)

The Iran plan

The consensus among analysts and traders is that Iran needs at least a year after sanctions are lifted to raise output to the level prevailing before restrictions were imposed in 2012. But the country could bounce back and restore oil production faster than many anticipate if the history of previous shutdowns is any guide. (Bloomberg)

Video of the day:

Bayard Gontijo recently took over as chief executive of Oi, one of Brazil’s biggest telecoms groups, with a mandate to cut costs and transform its balance sheet. He tells the FT’s Daniel Thomas that the country will recover but it needs political and tax reforms.

This article is published in collaboration with The Financial Times. Publication does not imply endorsement of views by the World Economic Forum.

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Author: FirstFT is the Financial Times’ editors curated free daily email of the top global stories from the FT and the best of the rest of the web.

Image: A laser-etched lead crystal glass artwork by Katherine Dowson entitled Memory of a Brain Malformation is seen at an exhibition. REUTERS/Chris Helgren.