Far right thwarted by leftwing surge in French election, polls suggest

Good morning. Today we’re covering:

• The South Korean battery giant in crisis

• China’s stabbing attacks

• Iran’s reformist president-elect

But we start with shock results from France’s parliamentary election, as an unexpected leftwing victory has thwarted Marine Le Pen’s efforts to bring the far right to power.

With almost all votes counted yesterday, the leftist Nouveau Front Populaire bloc had won the most seats in the high-stakes snap election, a severe blow to Le Pen’s Rassemblement National party, which had seen a parliamentary majority within reach.

The outcome represents a resounding success for the co-ordinated anti-RN strategy, under which the left and centre tactically withdrew their candidates from run-off ballots.

But the result will leave France in limbo over its next government, with no single bloc near an outright majority in the National Assembly. 

There were gasps of horror and tears at the RN electoral party as the first results estimates came in yesterday. Meanwhile, far-left leader Jean-Luc Mélenchon called on President Emmanuel Macron to appoint a leftwing prime minister.

Here’s what I’m else keeping tabs on today:

• India-Russia relations: Narendra Modi begins a two-day visit to Moscow for talks with Vladimir Putin.

• Samsung Electronics: A workers’ union at the South Korean tech giant is set to launch a general strike. (Reuters)

• Japan-Philippines ties: The two countries are set to sign a new defence agreement at a meeting between foreign and defence ministers. (Nikkei Asia)

• Economic data: Japan reports balance of payments and bank lending figures, the Philippines releases its May labour force survey and Singapore publishes official foreign reserves data for June.

Five more top stories

1. A leading South Korean producer of electric vehicle batteries has declared itself in crisis as its customers struggle with disappointing EV sales in Europe and the US. SK On’s chief executive Lee Seok-hee announced a series of cost-cutting and working practice measures last Monday, describing them as a state of “emergency management”.

2. Interview: Pakistan’s forthcoming IMF bailout “will not be our last” if the government fails to significantly boost tax revenue, the country’s finance minister has warned in the wake of a budget that seeks to reset the country’s ailing economy. Muhammad Aurangzeb said it is “time we get real” as Islamabad seeks its 24th package with the multilateral lender.

3. Joe Biden campaigned in the critical battleground state of Pennsylvania yesterday as he sought to persuade voters he is fit for office. A high-stakes primetime interview on Friday night did little to quell growing alarm among Democrats as the president faced tough questions about his age and mental acuity.

4. Benjamin Netanyahu said yesterday that any deal to free the Israeli hostages held by Hamas in Gaza must allow Israel to resume fighting afterwards and achieve all its war goals. Talks are due to resume this week after Hamas made what a senior US official said last week was “a pretty significant adjustment” to its position.

5. An addiction crisis is gripping Sierra Leone, driven by a surge in use of “kush”, a toxic blend of psychoactive substances. As the West African nation struggles to boost its economy, thousands of unemployed young adults have turned to the potent alternative to marijuana to fill their days.

News in-depth

A deadly knife attack on a school bus full of Japanese children near Shanghai last month was the latest in a series of recent violent incidents in China. The tragedies hint that the country’s economic downturn could be fuelling rising discontent, analysts said.

We’re also reading and listening to . . . 

• Iran: Masoud Pezeshkian, set to become the country’s first reformist president in two decades, wants to negotiate an end to Iran’s nuclear stand-off with the west.

• The new normal of office life: As working from home persists, companies are rethinking the role of office space, writes Pilita Clark.

• 🎧 Tech Tonic podcast: In the new season, longtime China reporter James Kynge finds out what’s behind the country’s incredible emergence as a global technology leader.

Chart of the day

The early stages of a long-awaited recovery in investment banking fees is set to boost Wall Street lenders when they report second-quarter earnings starting this week, with mergers and debt deals picking back up after a lacklustre two years. 

Take a break from the news

Australia, New Zealand and South Africa can provide serious cellar candidates for wine collectors on a budget, so long as you know where to look. Here’s Jancis Robinson’s guide to the best affordable wines from the southern hemisphere.