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  • WeekDay AM: 10 Things you need to know this morning
    Work vs benefits, the Red Bull sacking, and a 'mammoth' North Korean beach resort

     
    today's employment story

    Some benefits 'pay more than full-time job'

    What happened
    Unemployed people on sickness benefits will soon receive £2,500 more a year than a minimum wage worker, according to a think tank. An unemployed person claiming Universal Credit, housing benefit and personal independence payment for ill health would have an income of £25,000 in 2026-27, said the Centre for Social Justice. A full-time worker paid the national living wage would earn about £22,500 after income tax and National Insurance.

    Who said what
    This "must be a wake-up call for policy makers", wrote Iain Duncan Smith, former work and pensions secretary and the founder of the think tank, in the Daily Mail. The report "isn't a swipe at claimants", he said, but a system "designed to protect those in genuine need" now appears to "dis-incentivise work" and "trap people in long-term dependency".

    The think tank's calculations "show how generous" the welfare system will be after Keir Starmer failed to get £5 billion of planned cuts past his "rebellious" backbenchers, said The Telegraph. A "heavily watered-down" version of the government's benefits bill was approved by MPs last night, said the BBC.

    What next?
    Kemi Badenoch will warn today that Britain is "sitting on a ticking time bomb" of welfare dependency. The Conservative leader will also accuse Labour and Reform UK of "turning a blind eye" to a problem that could "collapse the economy".

     
     
    today's INTERNATIONAL story

    China denies targeting German plane with laser

    What happened
    German authorities have accused China of deliberately hitting one of its military aircraft with a laser from a warship. The German plane was taking part in EU operations to protect ships in the Red Sea from Houthi rebels in Yemen, but was forced to abandon its mission after the laser was fired directly at it.

    Who said what
    Lasers can "blind pilots", said the BBC, and there are some currently in development that are "capable of disabling targets in the air". The German government therefore accused the Chinese of "endangering German personnel and disrupting the operation" with their "completely unacceptable" actions.

    "The incident comes amid growing concern about China's influence on critical technologies and security infrastructure in Europe," said Newsweek. But Mao Ning (pictured above), a spokesperson for the Chinese Foreign Ministry, said the claims were "totally inconsistent with the facts known by the Chinese side". Both countries should "take a fact-based attitude" to the situation to avoid "misunderstanding", she said.

    What next?
    The German Foreign Ministry has summoned the Chinese ambassador for talks, which the embassy has yet to comment on.

     
     
    Today's SPORT story

    Red Bull sacks long-time team boss Horner

    What happened
    Christian Horner has been removed as team principal at Formula One team Red Bull after 20 years in charge.

    Who said what
    Horner was the "architect" of eight drivers' and six constructors' titles, "surviving politics, power shifts and, until now, a PR scandal", said Motor Sport. "Sharp-tongued and unapologetically competitive", the 51-year-old had been investigated over – and cleared of – inappropriate behaviour, and recently clashed with Jos Verstappen, the father of the team's star driver Max Verstappen. It has also been a "difficult 2025 season", with Verstappen dropping out of contention for the championship.

    The sacking was not "completely out of the blue" as "things were not particularly rosy" in the team, F1 pundit Martin Brundle told Sky Sports. Red Bull said he would "forever remain an important part of our team history".

    What next?
    Horner will be replaced immediately by Frenchman Laurent Mekies, the principal of sister team Racing Bulls, ahead of the Belgian Grand Prix at the end of the month.

     
     

    It's not all bad

    More than five years after Mattel began selling Barbies with disabilities, the company has launched its first doll with type 1 diabetes in what activists have called a positive step for representation. The doll, designed in partnership with leading diabetes charity Breakthrough T1D, wears a continuous glucose monitor on her arm, secured with pink heart-shaped medical tape, to track her blood sugar levels. She also has an insulin pump to administer the vital hormone and a bag big enough to carry snacks.

     
     
    under the radar

    North Korea's 'mammoth' new beach resort

    North Korea has opened a huge resort on its east coast in a bid to boost its struggling economy.

    The Wonsan-Kalma Coastal Tourist Area, which can accommodate 20,000 people, is a "pet project" for leader Kim Jong Un, who was pictured by state media "watching a man flying off a water slide in the resort", said France 24.

    Other photos released by state media showed "children with tubes and inflatable balls dipping into the sea", said The Associated Press. The "mammoth" resort is the "biggest tourist complex in North Korea" and is "at the heart" of Kim's push to boost tourism and improve the country's "struggling economy". But it is unlikely that Western tourists will be able to visit the resort "anytime soon".

    North Korea "sealed itself off from the world" when Covid-19 struck, said The Economist, and tourists only began to trickle back in last year. "Visits have since been sporadic and mostly for Russians only." Yet despite the hermit kingdom's "reputation as a joyless place", it does have an "active domestic tourism industry" and "North Korea's Benidorm" is aimed at its own middle classes.

    The first Russian visitors were due to arrive on Monday amid the "booming" military relationship between the two nations, said ABC News. But Chinese tourism, which made up 90% of visitors to the country before the pandemic, remains "stalled". Analysts say Beijing's relationship with North Korea has "cooled" due to China's reluctance to join an "anti-Western alliance" with Pyongyang and Russia.

    Yet observers say the "huge investment" that has come out of "North Korea's limited budget" to build the resort will eventually push Kim to welcome Chinese and other foreign tourists in order "to break even" on the project.

     
     
    on this day

    10 July 1965

    The Rolling Stones topped US charts for the first time with the single "(I Can't Get No) Satisfaction". After the band's comeback in 2023 with its 24th studio album "Hackney Diamonds", there are reports that it's working on a new record after cancelling plans for a European tour.

     
     
    Today's newspapers

    'Migration deal hangs in the balance'

    The Guardian says Keir Starmer's hopes of announcing a migration deal with France today may be thwarted. The UK contribution to the cost of policing is one of several remaining hurdles. In a "kick in the Gauls", says The Sun, the proposed deal will deport "just 50 migrants a week".

    See the newspaper front pages

     
     
    tall tale

    Surgical stuffing

    A hospital in Germany is helping to ease the fears of children by operating on stuffed toys. This year more than 600 children from the town of Darmstadt were invited to visit their local clinic to learn about the basic mechanics of the human body and dispel any worries they might have about doctors or medical procedures. The highlight was open heart surgery on a teddy bear called Fridolin who complained of stomach pains after swallowing too much cotton wool.

     
     

    Morning Report was written and edited by Holden Frith, Chas Newkey-Burden, Richard Windsor, Martina Nacach Cowan Ros, Jamie Timson, Harriet Marsden and Hollie Clemence, with illustrations from Marian Femenias-Moratinos.

    Image credits, from top: Matt Cardy / Getty Images; BJ Warnick / Newscom / Alamy Stock Photo; Michael Potts F1 / Shutterstock; Illustration by Marian Femenias-Moratinos / Getty Images.

    Morning Report and Evening Review were named Newsletter of the Year at the Publisher Newsletter Awards 2025
     

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