Evening Briefing: Europe

Britain fired its top representative in Washington after we detailed the depth of his relationship with Jeffrey Epstein. UK Prime Minister Keir Starmer recalled Peter Mandelson just hours after the contents of previously undisclosed emails cast new light on his relationship to the pedophile financier.

The correspondence was among a trove of over 18,000 messages we obtained from Epstein’s personal Yahoo account. We used multiple methods to verify their authenticity, including cryptographic analysis, metadata analysis and corroboration with external sources.

UK officials said the emails — particularly Mandelson’s suggestion that Epstein’s first conviction was wrongful and should be challenged — prompted Starmer to re-evaluate his December decision to send Mandelson to Washington. “In light of that, and mindful of the victims of Epstein’s crimes, he has been withdrawn as ambassador with immediate effect,” the Foreign Office said in a statement.

Peter Mandelson and Jeffrey Epstein Photographer: 731; Photos (from left): House Oversight Committee; Martin Argles/G/M/Camera Press/Redux

The email cache also opens new questions about British sex offender and former socialite Ghislaine Maxwell. According to her telling, she was a onetime girlfriend turned property manager at Epstein’s luxury homes around the world, yet was not privy to the inner workings of his vast influence machine or sex-trafficking operation. The emails suggest that Epstein and Maxwell were closer than either publicly admitted. Click here to listen to our podcast about the message trove.

Mandelson is just the latest high-profile Briton to be ensnared by a personal relationship with Epstein, who died in 2019. Other people include ex-Barclay’s boss Jes Staley and Prince Andrew. But with the latest revelations coming just days before President Donald Trump’s state visit to the UK, they’re sure to prompt more uncomfortable questions and transatlantic soul-searching about the special relationship. —Jonathan Tirone

What You Need to Know Today

The fallout from Israel’s failed attempt this week to assassinate key Hamas leaders meeting in Doha continues to spread. Qatar branded Israeli Prime Minister Benjamin Netanyahu “shameful” and “reckless” after he threatened the Gulf state with further military action if it doesn’t take action against the group, which the EU and US designate as a terrorist organization. Arab leaders more broadly began questioning the value of US security guarantees. Organizers of the Dubai Air Show have already moved to bar Israeli weapon makers. That leaves Europeans still squabbling over Israel’s assault on Gaza as one of the country’s biggest arms buyers.

Smoke from an Israeli strike in Doha, Qatar. UGC

France’s first AI billionaires have emerged from Mistral AI after a funding round valued the tech company at €11.7 billion ($13.7 billion). Arthur Mensch, the 33-year-old chief executive officer, Timothee Lacroix, 34, and Guillaume Lample, 34, each now have a net worth of $1.1 billion, according to the Bloomberg Billionaires Index. This year the world’s four largest tech firms will spend $344 billion on AI, mostly on data centers used to train and run large language models. Yet investors are starting to question whether so much capital should be concentrated in a single basket, writes Parmy Olson. Tech stocks have risen so far and so fast, that even the most optimistic money managers are positioning for a change in momentum.

Something’s rotten in Denmark. After reaching global heights in recent years, the nation’s pharmaceutical and clean-energy giants have suddenly crashed down to Earth, with the triumphs of Novo Nordisk and Orsted quickly receding in the rearview mirror. Novo this week announced it needs to cut 11% of its workforce to keep pace with competitors, while Orsted confronts a slowing wind business and legal peril across the Atlantic. The setbacks have sent tremors through Denmark’s government, pension funds and households. Consumer confidence is worsening, and economists are warning of lower growth.

The popular tourist location of Nyhavn in Copenhagen Photographer: Hilary Swift/Bloomberg

Like podcasts? We have two freshly-pressed episodes for your auditory pleasure. First up is Odd Lots, this week with Kelly Grieco of the Stimson Center. We discuss the recent military parade in Beijing and the questions it raised about global power projection. Then check out this week’s Green Zero, where we take a deep dive into Formula E. Sylvain Filippi, co-founder and chief technology officer of Envision Racing, discusses why the world needs an electric racing series, how Formula E is improving the experience for consumer electric cars, and why he’s not too concerned about the US backlash against EVs.

The European Central Bank kept borrowing costs unchanged for a second meeting, deeming inflationary pressure contained and economic danger abating despite heftier US tariffs. Euro-area bonds retreated and the euro climbed after ECB President Christine Lagarde said growth risks are “more balanced.”

NATO is working on defensive measures after a Russian drone incursion into Polish territory. We’re told there will be a political response to what Secretary General Mark Rutte called “reckless behavior” by the Kremlin. Poland has asked allies for additional air defense systems and counter-drone technology to better protect against future incidents. NATO forces shot down drones that crossed into Poland early Wednesday during Russia’s latest massive air strike on Ukraine.

A deadly fungus is spreading rapidly across European hospitals. A record 1,346 cases of the Candidozyma auris (C. auris) fungus were reported in the region in the latest 2023 data, a 67% increase from a year earlier, according to the European Centre for Disease Prevention and Control. There were no reported cases as recently as 2013. The fungus, which is difficult to treat because it is often resistant to antifungal drugs, survives on hospital surfaces and medical equipment and spreads easily between patients. It is particularly risky for people who are already sick, and mortality rates can be as high as 60%.