EU refugee quotas, Pope Francis begins his US tour and the world loves Instagram

The daily briefing “FirstFT” from the Financial Times:

Volkswagen said up to 11m vehicles could be affected by the growing diesel emissions scandal as governments worldwide launched investigations into the company. Shares in carmakers in Europe and the EU tumbled, with VW’s stock down nearly 20 per cent for the second day in a row. The company’s market cap has shrunk by €25bn in the past two days.

VW revealed it would set aside €6.5bn to cover costs related to the scandal, while its head Martin Winterkorn said he was “endlessly sorry” and vowed to fight on to regain the public’s trust. Here’s how VW got away with its “diesel deception”. (FT, NYT)

In the news:

EU forces through refugee quota plan

Four eastern European countries were overruled in their efforts to block a programme to relocate 120,000 migrants across the EU. The rarely invoked use of majority voting is likely to amplify tensions over the refugee crisis. (FT)

US changes tone on Russian weapons

Moscow’s deployment of fighter jets and surface-to-air missiles inside Syria is designed to protect a Russian airbase inside the country, US officials have concluded. The comments signal a shift in rhetoric following earlier remarks from the US that questioned the deployment. (FT)

Goldman Sachs boss has cancer

Lloyd Blankfein has revealed he is suffering from a “highly curable” form of cancer and will begin chemotherapy. The long-serving chief executive said he would be able to work “substantially as normal” as doctors treat the lymphoma. (FT)

Drug boss defends $750 pill

Martin Shkreli’s decision to exponentially raise the price of a drug given to cancer and Aids sufferers made him the subject of derision and vitriol worldwide. Yet the 32-year-old pharma chief appeared more amused than concerned when he appeared on US TV to defend the move. (FT)

Flying in the danger zone:

The Pentagon is investigating an “unsafe” interception of one of its spy aircraft by two Chinese fighters a week ago. The incident occurred in international airspace about 80 miles off the coast of China and just days before Chinese President Xi Jinping made his first visit to the US. (WSJ)

It’s a big day for:

American Catholics

Pope Francis begins his US tour at the White House, before making his way to New York and Philadelphia. As he travels the country, he will find a church in upheaval, with some parishes bursting with immigrants and others struggling to stay open. (NYT)

Food for thought:

A crisis Europe cannot escape

Martin Wolf argues that the EU must be up to the task of processing and integrating refugees, while bolstering border protection and immigration services. “The desperate human beings landing on European shores pose daunting moral, political and practical difficulties. But a way has to be found to manage them without sacrificing the values on which modern Europe was built.” (FT)

The world loves Instagram

The photo-sharing app owned by Facebook has hit 400m active monthly users as growth rates speed ahead of expectations. The platform added 100m monthly users in the past nine months alone, thanks to its adoption in international markets including Brazil, Japan and Indonesia. (FT)

Kentucky clerk continues crusade

Kim Davis, the US town official who went to jail rather than issue marriage licences to gay couples, is still in contempt of court, lawyers for couples suing her said on Monday. Upon return to work following her stint behind bar, Ms Davis made material changes to the marriage forms, they said. (Reuters)

The town that fooled the Nazis

Sometimes the syringe is mightier than the sword: the story of how two Polish doctors saved an estimated 8,000 people during the second world war afterfaking a typhus epidemic that scared the Nazis out of town. (Atlas Obscura)

Young Europeans may die earlier

Excessive smoking, drinking and obesity could mean young people across Europe today die at a younger age than their grandparents. The stark message comes from the WHO, which says governments should consider taxes or subsidies to change consumption patterns. (The Guardian)

Video of the day:

VW exemplifies regulatory action threat

Analysing companies by their exposure to factors such as oil, the dollar or the economic cycle is popular. James Mackintosh argues that VW is an example of another growing threat to corporate profits: the costs of regulatory action. (FT)

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 Syrian boy walks along a corridor inside a refugee camp in Harmanli. REUTERS/Pierre Marsaut.