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      Your Friday Briefing

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      Vladimir Putin will expand Russia’s military.A Russian Army recruiting billboard that reads: “Serving Russia is a real job!”Dmitri Lovetsky/Associated PressPutin to expand Russia’s militaryVladimir Putin ordered a sharp increase in the size of Russia’s armed forces yesterday, signaling a lengthy commitment to the war in Ukraine.The Russian president raised the target number of active-duty service members by about 137,000, to 1.15 million, as of January of next year. He also ordered the government to set aside money to pay for the growth.Some analysts described the move as a clear signal that, after a full six months of fighting, Putin had no plans to relent. Putin may also be trying to rebuild his forces. Experts have attributed the slowing pace of Russia’s offensive to a lack of manpower. And Western estimates of Russia’s casualties, including both deaths and injuries, have run as high as 80,000.Analysis: Putin’s decree represents a stunning reversal of years of efforts by the Kremlin to slim down a bloated military. But a national draft would destroy the veneer of normalcy that Russia has sought to maintain, despite economic sanctions and the continued fighting.Liz Truss is trying to appeal to the 160,000 or so dues-paying members of the Conservative Party who will choose the next British prime minister.Phil Noble/ReutersLiz Truss channels Margaret ThatcherLiz Truss, Britain’s foreign secretary, is the odds-on favorite to become the country’s next prime minister.With less than two weeks left in a race against Rishi Sunak, the former chancellor of the Exchequer, Truss has projected an aura of inevitability, stuck to the Conservative Party orthodoxy and wrapped herself in the mantle of Margaret Thatcher, a conservative icon.But Truss, 47, has offered very few clues about how she would confront an economic crisis that many experts view as the gravest in a generation. Instead, she has vowed to cut taxes, shrink the size of the government and discard the remaining E.U. regulations.The State of the WarWhat Is Next?: After six months of fighting, the war seems to have settled into an impasse on the battlefield. Here is how the next stage of the war might shape up.Russia’s Military Expansion: President Vladimir V. Putin ordered a sharp increase in the size of Russia’s armed forces, a sign Russia expects a prolonged war in Ukraine.Defiant Under Attack: Amid the blare of air raid sirens and deadly missile strikes, Ukrainians celebrated their Independence Day on Aug. 24 with a show of defiance against Russia’s invasion.Nuclear Plant Standoff: Russian and Ukrainian militaries are continuing to accuse each other of launching missiles and preparing to stage attacks on the Zaporizhzhia nuclear plant. The United Nations issued warnings about the risk of a nuclear disaster and called for a demilitarized zone around the plant.History: If she triumphs, Truss will become Britain’s third female leader, after Theresa May and Thatcher, an anti-Communist warrior and free-market evangelist who took power during a time of comparable economic hardship in 1979.The New York TimesHow China could blockade TaiwanChina probably still lacks the ability to quickly invade and seize Taiwan, but it is honing its ability to blockade the self-governed island.In an effort to force concessions, or as a precursor to wider military action, Beijing could ring the island in ships and submarines to prevent vessels from entering or leaving Taiwan’s ports. A blockade would seek to repel U.S. forces, and China would most likely also use warplanes and missiles to dominate the skies.Taiwan could be vulnerable: Most of its 23 million people are concentrated on its western flank — closest to China — along with its industry and ports. Even a limited blockade would threaten one of the world’s busiest trade routes.Technology: China sees information as a key battleground. It may try to disable undersea cables that carry about 90 percent of the data connecting Taiwan to the world.THE LATEST NEWSEuropeMyanmar Centre for Responsible BusinessMyanmar’s military regime arrested Vicky Bowman, a former British ambassador, and her husband. It charged them with violating immigration law.As France reels from a summer of extreme heat, private jets are under attack.Around the WorldA redacted version of the affidavit used to search Donald Trump’s residence is scheduled to be unsealed today.The U.N.’s top human rights official signaled that she may not release a long-awaited report on alleged abuses in Xinjiang before leaving office next week, despite promises to do so.A Pakistani court ordered the police not to arrest Imran Khan, the former prime minister, before a hearing next week.From 1976 to 1987, South Korean dictators forced roughly 38,000 people off the streets and into a welfare center, where some were beaten and raped. The government illegally detained them, a Truth and Reconciliation Commission confirmed this week.What Else Is HappeningJohn Minchillo/Associated PressNovak Djokovic, who is unvaccinated against Covid, said he would miss the U.S. Open.Ghislaine Maxwell’s lawyers are suing her and her brother for almost $900,000 in legal fees.A small study found that two doses of psilocybin “magic mushrooms,” paired with psychotherapy, sharply reduced excessive drinking.A Morning ReadVirginia Mayo/Associated PressMack Rutherford, 17, became the youngest pilot to complete a solo flight around the world in a small plane when he landed in Sofia, Bulgaria, on Wednesday.The Belgian-British pilot flew nearly 30,000 miles (more than 48,000 kilometers) and made stops in 30 countries. “Very happy to be here after five long months,” he said while disembarking.SPORTS NEWS FROM THE ATHLETICThis week, we are introducing a new component to this newsletter — a sports section, written by the staff of The Athletic.Breaking down the Champions League draw: The biggest club competition in European soccer is back with a bang, and the group stage draw has thrown up some instant classics. Chelsea must face the Italian champion, AC Milan; Tottenham will do battle with the likes of Marseille and Sporting Lisbon; and Bayern Munich, Barcelona and Inter Milan have been drawn together in the traditional “Group of Death.”The sad downfall of Dele Alli: The young England midfielder was once one of the brightest stars in the game. Now, at just 26 years old, and only a few years after what might have been his peak, he’s leaving the Premier League under a cloud, his future uncertain.Is the way we analyze scoring in soccer all wrong? The way we analyze attacking data has been the same for years, which could be leading to unfair comparisons between players. This is how it could be fixed.ARTS AND IDEASFear and L.G.B.T.Q. rights in GhanaWhen the members of the gay rights organization called the Drama Queens want to meet, they first have to identify a secure location and consider hiring security personnel. But they’re not alone. Members of dozens of advocacy groups in Ghana live in fear.Ghana, in West Africa, is generally considered one of Africa’s most progressive countries. But for the past year, it has been considering a harsh anti-L.G.B.T.Q. bill.When the measure was first presented, it was dismissed by many as an effort by opposition politicians to raise their profile. But the legislation, formally known as the Promotion of Proper Human Sexual Rights and Ghanaian Family Values Bill, is still alive, and activists say it has fueled a sharp increase in homophobia. There have been reports of police raids and harassment. In June, vandals destroyed L.G.B.T.Q. pride posters in Accra, the capital.The bill says that any activities promoting gay rights offend traditional values and threaten the concept of family. The country still has a colonial-era law on the books that punishes same-sex relationships, but this proposed legislation would go much further. It would criminalize virtually every aspect of queer culture, from the way people dress to their social gatherings. Allies of L.G.B.T.Q. people could also face criminal charges.The Drama Queens, formed five years ago, hold workshops on consent and sexual and reproductive rights and have expanded to provide a safe, creative space for women and queer Ghanaians. The organizers put together art exhibitions, film festivals and get-togethers where young people can share their experiences. If Parliament passes the measure, everything they do could become a crime.Dennis K.F. Agyemang, a co-director of the Drama Queens, denounced the bill, calling it “an imminent threat to organizations and queer safety.” — Lynsey Chutel, Briefings writer based in Johannesburg.PLAY, WATCH, EAT, PARENTWhat to CookChris Simpson for The New York Times. Food stylist: Maggie Ruggiero. Prop stylist: Sophia Pappas.The fruit sandwich is a Japanese treat. Here’s how to make your own.ParentingHow to get back in sync with your teen.Pet LifeDogs who don’t get enough exercise may be at higher risk of canine cognitive dysfunction, a.k.a. “doggy dementia.”Now Time to PlayHere’s today’s Mini Crossword, and a clue: “Night watch” (five letters).And here’s today’s Wordle and the Spelling Bee.You can find all our puzzles here.That’s it for today’s briefing. Thanks for joining me. — AmeliaP.S. The latest “The New York Times Presents,” available on Hulu, is about an influential doctor who spreads Covid misinformation.The latest episode of “The Daily” is on the death of Daria Dugina.Lynsey Chutel wrote today’s Arts and Ideas. You can reach Amelia and the team at briefing@nytimes.com. More

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      Liz Truss Makes a Strong Bid for Downing Street

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      Campaigning to be Britain’s next prime minister, Liz Truss has modeled herself after Margaret Thatcher and pushed a party orthodoxy of lower taxes, less government and bucking the European Union.BIRMINGHAM, England — When a British journalist asked Liz Truss on Tuesday to name the character flaw she would most like to fix, she confessed, “I think some of my friends would say I’m a bit relentless.”Her answer elicited chuckles from a gathering of Conservative Party members; after all, that question is usually an invitation for a politician to resort to a humble brag. Yet this time it had the ring of truth, coming after a campaign in which Ms. Truss, Britain’s foreign secretary, has piled up big-name endorsements, upbeat media coverage and a seemingly unshakable lead in polls of party members.With less than two weeks left in the race to replace Prime Minister Boris Johnson, her march to Downing Street looks nothing if not relentless. After a shaky start, Ms. Truss, 47, has cemented her status as the odds-on favorite to become Britain’s third female leader, after Margaret Thatcher and Theresa May.The results of the Tory leadership contest will not be announced until Sept. 5, after the ballots of the party’s 160,000 or so dues-paying members are counted. Ms. Truss’s underdog opponent, Rishi Sunak, delivered a robust and well-received performance at the event in Birmingham, a reminder that fortunes can change swiftly in politics.“You’re acting like this is already over — and it’s not,” a visibly peeved Mr. Sunak told the moderator, John Pienaar.Rishi Sunak, Ms. Truss’s rival for party leadership, being interviewed by John Pienaar, a journalist, at the event in Birmingham on Tuesday.Andy Rain/EPA, via ShutterstockThe static campaign has unfolded amid rapidly deepening economic turmoil. Household energy bills are spiking, inflation has soared into double digits, and the Bank of England warns of a prolonged recession. But none of that has dented the aura of inevitability around Ms. Truss.British newspapers are already busy speculating about whom she will name to her cabinet and when she will pass an “emergency budget.” The first question is easier to answer than the second. Despite spending a month on the campaign trail, Ms. Truss has offered very few clues about how she would confront an economic crisis that many experts view as the gravest in a generation.Instead, she has vowed to cut taxes, discard remaining European Union regulations, and shrink the size of Britain’s government — crowd-pleasing measures, tailor-made for the members of the Conservative Party, who tend to be older, wealthier, and more right-wing than the party’s voters, to say nothing of the broader British electorate.Ms. Truss has stood by Mr. Johnson and continues to serve in his lame-duck government. But she has wrapped herself in the mantle of Thatcher, an anti-Communist warrior, free-market evangelist and conservative icon who entered Downing Street at a time of comparable economic hardship in 1979.The Fall of Boris Johnson, ExplainedCard 1 of 5The Fall of Boris Johnson, ExplainedTurmoil at Downing Street. More

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      Rishi Sunak Has a Sterling Résumé. It’s Not Helping Him Replace Boris Johnson.

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      Mr. Sunak is viewed by many in his party as too distant from ordinary Britons, and is being blamed by some for setting off the rebellion that toppled Prime Minister Boris Johnson.CARDIFF, Wales — Just a few weeks ago Rishi Sunak, the former chancellor of the Exchequer, seemed well-placed to become Britain’s next prime minister, topping the short list of two contenders selected by Conservative Party lawmakers to replace the departing Boris Johnson.With an impeccable résumé, a reputation for competence and a reservoir of good will from having guided Britain’s economy through the pandemic, Mr. Sunak was regarded as perhaps the country’s brainiest, most polished and most successful frontline politician.But some of those same qualities now seem to be working against him. That resistance has hindered his pursuit of 10 Downing Street, according to opinion polls that show him trailing the foreign secretary, Liz Truss, in the race to succeed Mr. Johnson, with the winner to be announced on Sept. 5.Mr. Sunak’s diminished fortunes have added urgency to his campaign as he faces off with Ms. Truss in a series of debates across Britain. At an event in Cardiff, he bounded onto the stage with a broad smile and pleaded for votes from hundreds of activists in his party who will be among those who decide the outcome of the contest.“I will give you my everything, my heart and my soul — everything I’ve got,” he said, turning to face different parts of the hall and promising to make his audience “feel enormously proud of the Conservative government that I will be privileged to lead.”Mr. Sunak’s diminished fortunes have added urgency to his campaign as he faces off with Foreign Secretary Liz Truss in a series of debates across Britain.Henry Nicholls/Agence France-Presse, via Pool/AFP, via Getty ImagesMr. Sunak, 42, received warm applause, and outside the hall, Paul Fisher, an accountant from Blackwood, said he was likely to vote for the former chancellor because “economically, he seems like the safer pair of hands.” But even he added that Mr. Sunak “does come across as a bit too polished.”Mr. Johnson’s departure from Downing Street after a series of scandals has left the ultimate decision on his successor in the hands of around 160,000 Conservative Party members, a small “selectorate” that, by definition, is more right-wing than the general population but also whiter, older and more male.Many remain loyal to Mr. Johnson, and that has also created a problem for Mr. Sunak: He has been accused of treachery by some Conservative Party members because his cabinet resignation last month helped set off the rebellion against the prime minister.A politician unaccustomed to failure, Mr. Sunak, was until recently the undisputed rising star of British politics after a meteoric ascent that took him from newbie lawmaker to chancellor of the Exchequer in less than five years.Mr. Sunak, center, is being hurt by the sense that he helped set off the rebellion against Boris Johnson, which some Conservatives view as a betrayal. Toby Melville/Press Association, via Associated PressHe is also a walking success story of multiracial Britain, having been born in Southampton, on the south coast, to parents of Indian heritage who settled in the country six decades ago. If he wins the election, Mr. Sunak would become Britain’s first prime minister of color.Mr. Sunak’s father was a family doctor, his mother ran a pharmacy, and they saved money to send him to Winchester College, one of Britain’s most elite and academically rigorous fee-paying schools.He graduated with a top degree from Oxford University and then attended Stanford University, where he met his future wife, Akshata Murty, the daughter of an Indian technology billionaire.Mr. Sunak made his own fortune in finance, including a spell at Goldman Sachs, and entered Parliament in 2015, becoming chancellor of the Exchequer in 2020 at age 39. His popularity surged during the pandemic when the Treasury dispensed billions to save jobs and support struggling Britons.But setbacks followed with revelations early this year that Ms. Murty had limited her tax exposure in Britain; after the furor, and days of negative headlines, she volunteered to pay the extra tax. Mr. Sunak was also criticized when it emerged that he had retained a U.S. green card, which would allow him to live permanently in the United States. He gave it up before making his first visit to the country as chancellor last October.And while his top-notch résumé might be a dream for recruiters, it seems less popular with Conservative Party members drawn from provincial Britain.With homes in London, in his parliamentary constituency in Yorkshire and in Santa Monica, Calif., Mr. Sunak looks like a prosperous international jet-setter, because that’s what he is.“He is, in the end, perhaps just too shiny for the party membership,” said Tim Bale, a professor of politics at Queen Mary University of London. He added that with inflation soaring, interest rates rising and recession looming, Conservatives may think it is hard for someone of such affluence to appreciate the problems confronting ordinary Britons.Mr. Sunak’s enemies leaped on reports that he had worn a suit that cost 3,500 pounds and that he had worn a pair of £490 Prada loafers on a visit to a construction site.Lee Smith/Reuters“They do live in the real world,” Professor Bale said of party members, “and I think, in some ways, there was always a degree of suspicion that Rishi Sunak simply doesn’t.”Earlier this year, a photo opportunity went awry when Mr. Sunak seemed unsure how to pay at a gas station. More recently, Mr. Sunak’s enemies leaped on reports that he had worn a suit that cost 3,500 pounds, or about $4,300, and that he had worn a pair of £490 Prada loafers on a visit to a construction site. Even his slogan, Ready for Rishi, to some sounds a little entitled.Asked whether he is too prosperous to understand the predicament of ordinary Britons, Mr. Sunak said on Tuesday that he was fortunate to be in his current situation but that he hadn’t been “born like this.” He added: “I think in our country, we judge people not by their bank account; we judge them by their character and their actions.”Speculation that Mr. Sunak’s campaign might have suffered from racism has surfaced, but only rarely. Professor Bale, an expert on the Conservative Party leadership, said that “if it had been a very close race, we would have had to ask whether racism played a part, but given the gap” between Mr. Sunak and Ms. Truss, “it strikes me that it probably hasn’t.”Much more blame has been pointed at a campaign that has not been sure-footed. It began presenting him as the grown-up politician, stressing his fiscal conservatism and his determination to tackle inflation before cutting taxes.But with Ms. Truss’s promises to make quick reductions in taxes, Mr. Sunak has retreated, pledging that he would temporarily suspend the value-added tax, a sales tax, on energy bills — something that he not long ago rejected.“What she’s done, incredibly successfully, is drag him onto her turf,” said Jill Rutter, a former civil servant and a senior fellow at the Institute for Government, a London-based research group, referring to the debate on taxation.Mr. Sunak with his wife, Akshata Murty, second from right, and their daughters. He graduated with a top degree from Oxford University and then attended Stanford University.Peter Nicholls/ReutersAs the contest between the two candidates has become increasingly bitter, Mr. Sunak told the BBC on Wednesday that he would rather lose than “win on a false promise” and would tell people what “they needed to hear” rather than what was easy and expedient.Then there is the role Mr. Sunak played in the ouster of Mr. Johnson by resigning from the cabinet. In fact, all of Mr. Johnson’s would-be successors had positioned themselves for potential bids for months, including Ms. Truss, who wooed fellow lawmakers with drink invitations nicknamed “fizz with Liz.”But she remained in the cabinet to the bitter end, stayed publicly loyal and is benefiting now from a sense among some that Mr. Johnson was betrayed and that Mr. Sunak led the way.“There’s perhaps a feeling of guilt about the defenestration of Boris Johnson which, in some ways, she helps to assuage,” Professor Bale said.In Cardiff, Patricia Johnson, a retired market researcher from Caerphilly, Wales, said she was one of those who think that Mr. Sunak “is not as trustworthy as I would like” and added, “I don’t like the idea that Boris was hoisted from the position that the country put him in.”As for Mr. Sunak’s ability to tackle the problems confronting ordinary Britons, Ms. Johnson was less than convinced. Things, she said, probably look a little different “if you don’t have to worry where the next £3 million is coming from.” More

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      Gentle Into That Good Night? Not Boris Johnson.

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      The British prime minister may be leaving Downing Street, but few expect him to cede the spotlight, or abandon the prospect of one day regaining his position.LONDON — Less than three weeks after he announced his resignation, and with rumors already swirling that he plans a comeback, Britain’s scandal-scarred prime minister, Boris Johnson, received the sort of self-care advice best dispensed by a family member.“If you ask me,” Rachel Johnson, the prime minister’s sister, said recently on LBC Radio, where she hosts a talk show, “I would like to see my brother rest and write and paint and just regroup and just, you know, see what happens.”Not much chance of that.Still serving as caretaker prime minister, Mr. Johnson has hardly retreated to the background. He recently posed in a fighter jet, then at a military base where he hurled a hand grenade, used a machine gun and held a rocket launcher during a training exercise with Ukrainian troops.According to one media report, he stoked speculation that somehow he might try to reverse his resignation, lunching recently with a prominent supporter of a petition for a rule change that could allow him to remain in his job.And at his final appearance in Parliament as prime minister, Mr. Johnson’s verdict on his three tumultuous years in Downing Street was “mission largely accomplished — for now,” before he signed off with words from a “Terminator” movie: “Hasta la vista, baby.”Mr. Johnson, 58, lost his job when a succession of scandals prompted dozens of resignations from his government but he remains prime minister until early September when one of the two remaining candidates — Foreign Secretary Liz Truss or the former chancellor of the Exchequer, Rishi Sunak — will take over. In politics the media caravan moves swiftly on, and a vicious battle for the succession is now the big news story.Mr. Johnson visiting the Francis Crick Institute, four days after announcing his resignation. He has continued to make high-profile appearances.Leon Neal/Agence France-Presse Via Getty ImagesYet as a devotee of the Terminator franchise, Mr. Johnson knows about sequels.“He’s not the kind of person who gives up and goes away to live a quiet life in some nice house in the country and does good work for the local church,” said Andrew Gimson, who is soon to publish a second volume of his biography of Mr. Johnson.“You don’t really get to the top unless you are already quite unnaturally competitive, so it would be very astonishing if he just subsided into private life.”The Fall of Boris Johnson, ExplainedCard 1 of 5Turmoil at Downing Street. More

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      Twitter Takes Round 1

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      Judge Kathaleen McCormick granted the social media giant’s request for an expedited hearing. Now, the two sides are gearing up for a trial in October.Twitter: 1, Musk: 0.Jim Wilson/The New York TimesTwitter suit takes the fast laneTwitter won its effort to expedite its trial with Elon Musk yesterday, in its lawsuit to force Musk to close his $44 billion acquisition of the company. So many people tried to listen to the proceedings that the dial-in hit capacity — and we hear advisers across Wall Street were huddled around speakerphones.It’s a big win for Twitter. In granting an expedited hearing, Judge Kathaleen McCormick effectively repudiated the notion that the court needed to allow time for a deep dive into whether Twitter had accurately counted the number of bots on its platform. She cited the “cloud of uncertainty” that was hanging over the company the longer the case went undecided as the reason for her decision to fast-track the trial. And in what may be another good sign for Twitter, Judge McCormick said she was unsure that damages would be a sufficient remedy for the social media company, which wants Musk to buy it, not pay damages to walk away.Please see Page 5. A centerpiece of Musk’s claims is that Twitter’s disclosures about the percentage of active users on its platform that are bots are misleading, which would have a “material adverse effect” on the company’s value. But Musk has yet to tell the court what, exactly, in Twitter’s disclosures might be false. This became an issue when Musk’s lawyer at Quinn Emanuel, Andy Rossman, took aim at Page 5 of Twitter’s annual report, which explains its bot count. But Twitter’s lawyer at Wachtell, Bill Savitt, in his rebuttal, noted that Twitter fills that page with hedges and warnings that numbers might be off. (It reads, in part: “Our estimation of false or spam accounts may not accurately represent the actual number of such accounts, and the actual number of false or spam accounts could be higher than we have estimated.”) Of Twitter’s disclosure, Savitt said: “This does not require a recreation of all things known to humanity.” Judge McCormick seemingly agreed.The two sides are gearing up for a trial in October. Over the next weeks, they have to agree on schedules for depositions and discovery. And Musk will have time to prepare for another hearing before Judge McCormick that month: a defense of his whopping Tesla pay package — money that could come in handy if she forces him to buy Twitter.HERE’S WHAT’S HAPPENING Netflix loses fewer subscribers than expected. The streaming service reported yesterday that it lost nearly 1 million subscribers in the second quarter, far fewer than it had forecast. What’s more, Netflix said some of its strategies to stem losses, like an ad-supported option for consumers and a crackdown on password sharing, would boost revenue as soon as next year.A heroic act in an Indiana mall shooting renews the debate over gun access. In the days since a 22-year-old armed bystander killed a gunman two minutes into a shooting spree, the U.S. is again debating the wisdom of easier access to guns. But an analysis of 433 active shooter attacks in the U.S. between 2000 and 2021 found just 22 had ended with a bystander shooting the attacker, according to the Advanced Law Enforcement Rapid Response Training Center at Texas State University.The CHIPS Act passes a procedural hurdle in the Senate with more than 60 votes. The legislation, stalled for more than a year, gives chip manufacturers what they say is help they need to build factories in the U.S. The Senate is expected today to officially vote to pass the bill, which has been slimmed down and still needs to return to the House before it can go to the president.Intelligence agencies say Russia remains a threat in elections. Top F.B.I. and National Security Agency officials warned yesterday that Russia could still seek to meddle or promote disinformation during the 2022 midterm races, even as it wages war in Ukraine. Iran and China also remained potent threats, the officials said.The House moves to protect same-sex marriage from Supreme Court reversal. New legislation, which garnered some Republican support, would recognize same-sex marriages at the federal level, but it faces an uncertain path in the Senate. The move was a direct answer to Justice Clarence Thomas’s concurring opinion in the ruling last month that overturned federal abortion rights.The loans that may haunt Silicon ValleyTech workers have taken out loans in recent years based on the value of their start-up stock. But as the start-up economy has deflated, that may come back to haunt them, writes The Times’s Erin Griffith.Start-up loans stem from the way workers are typically paid. As part of their compensation, most employees at privately held tech companies receive stock options. That’s where loans and other financing options come in. Start-up stock is used as a form of collateral for cash advances. The loans vary in structure, but most providers charge interest and take a percentage of the worker’s stock when the company sells or goes public. Some are structured as contracts or investments.This lending industry has boomed in recent years. Many of the providers were created in the mid-2010s as hot start-ups like Uber and Airbnb put off initial public offerings of stock as long as they could, hitting private market valuations in the tens of billions of dollars.Debate has ignited in Silicon Valley over the proliferation of loans backed by stakes in still-private start-ups. Proponents say the loans are necessary for employees to participate in tech’s wealth-creation engine. But critics say the loans create needless risk in an already-risky industry and are reminiscent of the dot-com era in the early 2000s, when many tech workers were badly burned by similar loans.As the start-up economy deflates, these loans can be risky. While most are structured to be forgiven if a start-up fails, employees could still face a tax bill because the loan forgiveness is treated as taxable income.“No one’s been thinking about what happens when things go down,” said Rick Heitzmann, an investor at FirstMark Capital. “Everyone’s only thinking about the upside.”“The thing I’ve always been taught by my parents is to be the first one in and last one out. But there’s no one else there.”— Alex Hyman, who pictured his internship at a Los Angeles entertainment agency this summer as being one part “Entourage” and one part “The Office,” but found it more like “Home Alone.” It’s a common experience in an age of remote-working bosses.Mooch’s crypto problemAnthony Scaramucci, who is famous for his 11-day stint as former President Donald Trump’s communications director, is facing a mass exodus of investors from his funds.Earlier this week, Bloomberg reported that Scaramucci’s firm SkyBridge Capital had halted withdrawals from one of its smaller funds, Legion Strategies, which contains just over $200 million. But Scaramucci is also struggling to hold onto investors in SkyBridge’s flagship fund, the SkyBridge Multi-Adviser Hedge Fund Portfolios, which managed as much as $2 billion at the end of March. Its investments lost nearly a quarter of their value in the second quarter.Investors in SkyBridge’s flagship fund are seeking to withdraw as much as $890 million, or about half of the money that it held as of the end of last month, Scaramucci told DealBook. But many of those investors will be stuck in the fund for a while. Under its rules, investors in the Multi-Adviser fund are only allowed to withdraw money during certain windows. Those used to occur four times a year, but SkyBridge cut them to twice a year in 2020, after big losses at the beginning of the pandemic. Earlier this month, SkyBridge told investors they would only collectively receive about 16 percent of the money they requested. The letter said it was issuing investors’ notes that would be paid no later than October.Scaramucci’s losses come just over a year after SkyBridge’s pivot into crypto. SkyBridge’s flagship fund, which Scaramucci bought from Citigroup, has long specialized in buying and selling stakes of other hedge funds. For a time, that, along with strong performance in the years after the 2008 financial crisis, made Scaramucci one of the most powerful players in the hedge fund industry.Scaramucci says he is still a long-term believer in crypto. The fund manager says that about 22 percent of his flagship fund remained in crypto and related investments as of the end of last month. “I am not smart enough to time the market,” he told DealBook. “But we’ve done a tremendous amount of research and we think anyone who has will see that blockchain technology is good and is the future.”THE SPEED READ DealsPimco bought $1 billion worth of debt backing Apollo’s acquisition of a payments company at a steep discount. (Bloomberg)Start-ups are racing for share of the market for home chargers of electric vehicles, and several have already been acquired. (Reuters)“Sam Bankman-Fried Turns $2 Trillion Crypto Rout Into Buying Opportunity” (Bloomberg Businessweek)PolicyDan Cox, a Trump loyalist, won the primary to be the Republican candidate for governor of Maryland. (NYT)Novavax’s Covid vaccine was cleared for use in the U.S. (NYT)The Secret Service said texts requested by the Jan. 6 commission were probably lost for good. (NYT)U.K. inflation has exceeded economists’ forecasts, hitting 9.4 percent (FT)President Vladimir Putin signaled that Russia would resume gas deliveries through a key pipeline but at a reduced level. (NYT)Best of the restLeaked salary data at Twitter showed a pay gap of as much as 225 percent for the same role in different countries. (Input)Soaring overdose rates in the pandemic reflect widening racial disparities. (NYT)How the pain of past economic crises is haunting Italy. (NYT)“Fighting a Brutal Regime With the Help of a Video Game” (NYT)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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      Prime Minister Race in Britain Remains Unsettled in Wake of Johnson’s Downfall

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      Rishi Sunak, the former chancellor of the Exchequer, is the current front-runner, but Penny Mordaunt, a junior trade minister, is making a surprisingly strong run for the leadership position.LONDON — The last time Britain’s Conservative Party elected a new leader, Boris Johnson dominated the contest from wire to wire, a political celebrity so famous that many voters just called him Boris.Three years later, the oddsmakers’ favorite is Penny Mordaunt, a junior trade minister so obscure that some voters have told pollsters that they confuse her with another single-name English star: the singer Adele.Ms. Mordaunt’s sudden surge in popularity reflects the wide-open, topsy-turvy nature of the race. And it reveals the shadow that Mr. Johnson still casts over British politics. Ms. Mordaunt’s lack of association with the recently deposed prime minister is one of her calling cards: She promotes herself as a fresh start after the ceaseless drama of the past three years. Weary Tory lawmakers are responding.Strictly speaking, Ms. Mordaunt, 49, is not the current front-runner: That status belongs to Rishi Sunak, the former chancellor of the Exchequer, who won the backing of 101 lawmakers in the second round of voting on Thursday. Ms. Mordaunt was second, with 83 votes. Conservative legislators will hold additional ballots early this week, before advancing two candidates to a vote of the party’s rank-and-file membership, the results of which will be announced in early September.Provided she makes the shortlist of two, however, Ms. Mordaunt looms as a formidable contender. In a poll of members last week, she finished far ahead of Mr. Sunak in a head-to-head matchup. She also easily outpolled the No. 3 candidate, Liz Truss, who is Mr. Johnson’s foreign secretary and has refused to disavow him. Ms. Mordaunt, by contrast, is neither a Johnson loyalist nor an insurgent figure.“She has the best of both worlds,” said Tim Bale, a professor of politics at Queen Mary University of London. “She can’t be accused of disloyalty on the one hand, and on the other, she has sufficient distance from Johnson because she played such a minor role in government that she’s not tainted by association.”Rishi Sunak, the former chancellor of the Exechequer, has faced attacks from allies of Boris Johnson for resigning his position two weeks ago.Alberto Pezzali/Associated PressVernon Bogdanor, a professor of government at King’s College London, said Ms. Mordaunt’s low profile makes her an attractive blank slate. “No one knows what her views are, and so one can attribute one’s own views to her,” he said. “The same happens in spades, in regard to the queen.”But Ms. Mordaunt’s swift rise has alarmed some critics, who say she is untested and thinly qualified for prime minister. A paratrooper’s daughter who serves in the Royal Naval Reserve, Ms. Mordaunt was defense secretary for two and a half months in 2019 and held a lesser cabinet post in charge of international development.People who have worked with her describe her as charming and sincere, but not interested in the complexities of policy. She also has very little economic experience, at a time when Britain faces a once-in-a-generation cost-of-living crisis.“She was honest and straightforward, and I thought she did care about international development,” said Alistair Burt, who was a minister in the international development department when she was there. “But it is a surprise — I wouldn’t have thought that she would be where she is.”Whether she was equipped to be prime minister, Mr. Burt said he “genuinely wouldn’t know because she hasn’t been significantly tested.”As Ms. Mordaunt’s profile has risen, the attacks on her have sharpened. David Frost, who resigned as Mr. Johnson’s Brexit negotiator last year, gave a scathing account of Ms. Mordaunt, who served as his deputy. He accused her of a poor grasp of detail and absence from her government department, and of being such a problem that he had asked the prime minister to move her to another job.Like other hard-line Brexiteers, Mr. Frost has thrown his support behind Ms. Truss, who campaigned against leaving the European Union in the 2016 referendum, but who has since converted to the cause with zeal. Ms. Mordaunt voted to leave, as did Mr. Sunak.Liz Truss, the foreign secretary, remained loyal to Mr. Johnson, which could hurt her in the leadership race.Peter Nicholls/ReutersIt is one of the paradoxes of this race that Brexiteers are opposing the two candidates who backed Brexit and are supporting the one who opposed it.Not only did Ms. Mordaunt urge Britons to vote for Brexit, but she also played a minor, though memorable, part in the campaign by warning that Turkish migrants would flock to Britain when their own country joined the European Union, something she claimed Britain would be unable to block. The statement was erroneous: Britain, like other members, had a right to veto Turkey’s membership.Brexit supporters regard her with suspicion for another reason: She voted for an ill-fated withdrawal agreement with the European Union negotiated by Prime Minister Theresa May.Ms. Mordaunt combines an interest in security and a military background with views on social issues that are mildly progressive by Tory party standards. She has spoken up in favor of the rights of transgender people, for example, a position that has gotten her into trouble with the culture warriors on the party’s right.Seeking to defuse the issue, Ms. Mordaunt said last week that transgender women “are not biological women like me, but the law recognizes them in their new gender and that’s very simple and straightforward.”In the cut-and-thrust of Tory politics, of course, it is neither.During a televised debate on Friday evening, Mr. Mordaunt came under renewed pressure on the issue, with one of her opponents, Kemi Badenoch, questioning whether she had backtracked on her earlier position. Critics said Ms. Mordaunt’s performance was wobbly and unfocused.Analysts said the unsettled nature of the contest had made it especially vicious. Mr. Sunak, the early front-runner, has come under attack by Mr. Johnson’s allies, who view his resignation less than two weeks ago, which set the stage for the prime minister’s downfall, as a betrayal. Mr. Sunak’s tax policy as chancellor was criticized by Jacob Rees-Mogg, with whom he sat in cabinet just days ago. Mr. Rees-Mogg refused to deny reports that he had described the policy, which included tax increases, as “socialist.”The Conservative Party Conference last year in Manchester, England.Neil Hall/EPA, via Shutterstock“Rishi Sunak was always going to get it in the neck,” Professor Bale said.Ms. Truss, who did not resign from Mr. Johnson’s cabinet, faces the danger of being the most closely associated with him. Critics said her campaign had gotten off to a less-than-stirring start. She is not viewed as a charismatic campaigner, despite her solid credentials. One Liberal Democratic lawmaker likened her to Hillary Clinton, while Ms. Mordaunt, the lawmaker said, more resembled Bill Clinton.Unlike Ms. Mordaunt, Ms. Truss has significant economic experience. Yet Ms. Mordaunt’s weakness in that area has yet to hurt her campaign, despite the soaring inflation and specter of a recession that haunts Britain. A lack of focus on the future, analysts said, was another legacy of Mr. Johnson’s distracting tenure.“He’s left the Conservative Party deeply confused because he was trying to hold together an electoral coalition that isn’t a particularly natural one,” Professor Bale said, referring to traditional Conservative voters in the south and working-class supporters in the north of England that Mr. Johnson won over from the Labour Party in 2019.“It was always going to be a case of ‘après moi, le deluge,’” he added. “When Boris Johnson eventually was forced out, there was almost inevitably going to be chaos and bad feeling because of who he was and how he acted.” More

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      Sunak Takes the Lead to Replace Johnson as U.K. Prime Minister

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      The former chancellor of the Exchequer led a pack of candidates after the first round, while an obscure trade minister surprised in second place.LONDON — Rishi Sunak, a former chancellor of the Exchequer, stayed at the front of the pack of candidates vying to replace Prime Minister Boris Johnson of Britain after the first round of the Conservative Party’s leadership contest on Tuesday.But Penny Mordaunt, a relatively little-known junior trade minister, finished a strong second in the vote among Conservative lawmakers. And she has opened a commanding lead among the party’s rank-and-file members, according to a new poll, which suggested she could soon supplant Mr. Sunak as the favorite.In the secret vote, more akin to a papal conclave than a national plebiscite, 357 Conservative lawmakers cast ballots to elect their next leader, who will become the fourth prime minister of Britain in six years.Six candidates remained in the race after the first round. Two were eliminated for failing to clear the minimum threshold of support from 30 members of Parliament, including Nadhim Zahawi, who replaced Mr. Sunak as chancellor after he resigned last week in a move that set the stage for Mr. Johnson’s downfall.It was the first of multiple rounds of party ballots this week, designed to whittle the sprawling field down to two finalists. They will spend a hectic summer wooing the party’s membership — a larger, though still limited group — which will elect Mr. Johnson’s replacement in early September.The quirky nature of the process has already produced some surprises: While Mr. Sunak was expected to be the front-runner, and won a respectable 88 votes, Ms. Mordaunt’s 67 votes placed her within striking distance of him. Liz Truss, the foreign secretary, emerged as the third top-tier candidate, with 50 votes.Penny Mordaunt, a trade minister, finished a surprising second in the vote among Conservative lawmakers.Tolga Akmen/EPA, via ShutterstockIn a poll conducted by the market research firm YouGov, Ms. Mordaunt, a paratrooper’s daughter who serves in the Royal Naval Reserve, holds a wide lead among members over Mr. Sunak, Ms. Truss and all other candidates.Two younger female candidates — Kemi Badenoch, with 40 votes, and Suella Braverman, with 32 — got through, keeping their hopes alive but raising the prospect that the hard-line Brexiteer vote may coalesce behind Ms. Truss.Tom Tugendhat, the chairman of Parliament’s Foreign Affairs committee, who is running as an outsider, also survived into the second round, with 37 votes.Jeremy Hunt, a former foreign secretary who unsuccessfully challenged Mr. Johnson for leader in 2019, came in last with 18 votes. Mr. Tugendhat would hope to pick up some votes in later rounds from the centrist Mr. Hunt.Mr. Zahawi, with just 25 votes, was perhaps the day’s biggest disappointment. He had been a rising star in the party, propelled by his energetic management of the government’s rollout of coronavirus vaccines last year.The remaining six conservative leadership candidates are, clockwise from top left, Liz Truss, Rishi Sunak, Penny Mordaunt, Kemi Badenoch, Suella Braverman and Tom Tugendhat.Agence France-Presse — Getty ImagesBut critics faulted him for acting erratically last week, first accepting a plum post from Mr. Johnson, then calling on him to resign only a day later. There were also questions about Mr. Zahawi’s business dealings, which led him to complain that he was the victim of a smear campaign.In the early days of the campaign, with so many candidates jostling for attention, the debates have been scattered and not particularly substantive. Much of the action involved horse-trading between candidates, with rising competitors eager to win over the votes of those who dropped out.To complicate the picture further, Mr. Johnson suggested that the process of replacing him could move more quickly if the second-ranked candidate bowed out after the initial rounds and the leader was elected by acclamation.Downing Street later said that if the winner was chosen on Sept. 5, which is the timetable set out by the party committee running the election, Mr. Johnson would deliver his formal resignation to Queen Elizabeth II the following day.Appearing at one of his last sessions of Prime Minister’s Questions, Mr. Johnson said he was “leaving with my head held high,” despite a drumbeat of scandals that eventually turned his party and his cabinet against him.In a sign that his rivals are already beginning to turn the page on him, the leader of the opposition Labour Party, Keir Starmer, devoted most of his questions to pressing Mr. Johnson for his views on people who have non-domicile tax status in Britain.That status is claimed by the wife of Mr. Sunak, Akshata Murty, whose father is the Indian technology billionaire Narayana Murthy. Mr. Starmer signaled that Labour would make the wealth of Mr. Sunak and his wife the centerpiece of its attack on him if he emerges as the next Tory leader.Mr. Johnson has declined to endorse any of the candidates, saying that to do so might hurt their chances. But in a lively exchange with Mr. Starmer, he predicted that any one of them would be able to “wipe the floor” with the Labour leader, whom he lampooned as “Captain Crash-a-Roony Snooze Fest.” More

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      For Boris Johnson, a Chaotic Reign Ends With a Chaotic Exit

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      The risk-taking bravado of Britain’s colorful prime minister was not enough to compensate for his shortcomings, or overcome a catastrophic loss of party support.LONDON — The end, when it finally came, was just as chaotic, messy and jaw-dropping as every other chapter of Boris Johnson’s political career.Holed up in Downing Street on Wednesday night, the prime minister faced an open rebellion of his cabinet, a catastrophic loss of support in his Conservative Party and a wholesale exodus of ministers, which threatened to leave significant parts of the British government without functioning leadership.Yet far from surrendering, Mr. Johnson’s aides put out word that he would continue to fight. It looked like a last roll of the dice by one of the great gamblers in British politics. His brazen refusal to bow to reality invited comparisons to Donald J. Trump’s defiance in the chaotic days after he lost the 2020 presidential election.The British prime minister stepped down as Conservative Party leader after recent scandals prompted a wave of resignations from his top officials. He plans to stay on as prime minister until a successor is in place.Henry Nicholls/ReutersBy Thursday morning, however, political gravity had finally reasserted itself. For one of the few times in his career, Mr. Johnson was unable to bend the narrative to his advantage through the sheer force of his personality.At midday, the prime minister went to a lectern in front of 10 Downing Street to announce he was relinquishing the leadership of a party that no longer supported him, and giving up a job he had pursued for much of his adult life.“I want to tell you how sorry I am to be giving up the best job in the world,” Mr. Johnson said. Then, defusing the solemnity of the moment with a wry line from the pool halls of America, he added, “Them’s the breaks.”A crowd gathered outside Downing Street on Thursday morning to hear Mr. Johnson’s statement.Henry Nicholls/ReutersAs the political post-mortems on Mr. Johnson are written, the tumultuous events of the last week may come to encapsulate his career — one defined by a gleeful disregard for the rules, a shrewd instinct for public opinion, an elastic approach to ethics and a Falstaffian appetite for the cut-and-thrust of politics.“Most prime ministers would have gotten the message sooner,” said Andrew Gimson, one of Mr. Johnson’s biographers. “The element of exaggeration, of turning up the volume, is very characteristic of his style.”Mr. Gimson once likened Mr. Johnson to Admiral Nelson, the 18th-century naval hero who vanquished Napoleon in the Battle of Trafalgar. “Nelson said the boldest measures are the safest,” he said.In the end, however, Mr. Johnson’s risk-taking bravado was not enough to compensate for his shortcomings. He engaged in behavior that critics said revealed a sense of entitlement and a belief that the rules did not apply to him, his staff or his loyalists. Critics accused him of being disorganized, ideologically and administratively.After leading Britain out of the European Union in 2020, the prime minister did not have much of a plan for what to do next. He quickly became hostage to events, lurching from crisis to crisis as the coronavirus pandemic engulfed Britain. A pattern of scandals, which followed him throughout his career, soon overtook Downing Street.Mr. Johnson had long thrived by thumbing his nose at political convention. His disheveled crop of blonde hair seemed a metaphor for a messy personal and professional life, which some British voters savored while others merely tolerated it.Mr. Johnson preparing to appear on television in 2019. A journalist-turned-politician, he was able to fuse the forces of celebrity culture with an opportunistic, ideologically flexible approach to the issues.Stefan Rousseau/Press Association, via Associated PressBut Mr. Johnson’s lack of truthfulness finally caught up with him. His constantly shifting accounts of his conduct — whether in attending illicit parties at Downing Street during lockdowns, attempting to use a Tory Party donor to finance the costly refurbishment of his apartment, or promoting a Conservative lawmaker with a history of sexual misconduct allegations against him — finally exhausted the patience of his party and many voters.Mr. Johnson’s role in campaigning to leave the European Union, then carrying out Brexit and then seeing Britain through the pandemic, will guarantee him a place in the ranks of significant British prime ministers. Beyond that, he leaves behind a checkered policy legacy, and he never escaped suspicions that his agenda was driven not by ideological conviction but by the cynical calculation of what political advantages he could extract from it.In the end he may be most remembered for his confounding mix of strengths and weaknesses.From the start, Mr. Johnson represented something new in British politics. A journalist-turned-politician, he was able to fuse the forces of celebrity culture with an opportunistic, ideologically flexible approach to the issues. To most Britons, he was simply “Boris,” a first-name familiarity enjoyed by no other British politician.With his rumpled suits and untucked shirts, Mr. Johnson affected a louche, upper-class insouciance that somehow also connected with working-class voters. His antics as the mayor of London — he once famously dangled from a zip line above photographers, waving a pair of Union Jacks — turned him into a clown prince.But all the tomfoolery — aside from drawing attention to himself — also helped make him a serious electoral contender. With Britain caught up in an anguished debate over its future in the European Union, Mr. Johnson latched on to an issue that would propel him to the top of the Conservative Party. First, of course, he famously dithered about which side of the Brexit debate to embrace — leave or remain — drafting newspaper columns that made the case for both.With his rumpled suits and untucked shirts, Mr. Johnson affected a louche, upper-class insouciance that somehow also connected with working-class voters.Pool photo by Clemens BilanOnce he had thrown in his lot with “Vote Leave,” Mr. Johnson became an energetic campaigner. He helped win the 2016 referendum against European Union membership, used the issue to drive out the woman who became prime minister in its aftermath, Theresa May, and rode a promise to “Get Brexit Done” to a thrashing of the Labour Party in the 2019 general election.That victory, which awarded the Conservative Party its largest majority since 1987, emboldened Mr. Johnson when his standing collapsed under the weight of serial ethical scandals. He invoked his “colossal mandate” as a response to those who said he should step down, saying he owed it to his 14 million voters to go on.Unlike in the United States, however, Mr. Johnson governs in a parliamentary, not a presidential, system. Those 14 million people voted for the Conservative Party, not for Mr. Johnson, who merely served as the party’s leader, at the pleasure of its lawmakers. When they withdraw that support, the leader is replaced.At a parliamentary committee hearing on Wednesday, Mr. Johnson pointedly declined to rule out trying to call an early general election — in effect, bypassing the Conservative Party to throw his fate back to the voters.That evening, a delegation of cabinet ministers and party officials traveled to Downing Street to appeal to Mr. Johnson to step down. He rejected their entreaties and instead fired one of his most senior ministers and allies, Michael Gove, who had been among those warning him that his time was up.The palace intrigue, combined with Mr. Johnson’s initial refusal to accept his situation, drew comparisons to Mr. Trump.“We have this habit in Britain of following American politics, a couple of years later,” said Jonathan Powell, who served as chief of staff to a Labour prime minister, Tony Blair. “We have ended up with a poor man’s Trump, in the form of Johnson.”The United States, Mr. Powell said, was still living with the aftereffects of Mr. Trump’s presidency. “In Britain, because our system is different, we should be in a position to heal more quickly,” he said. More