FirstFT: Center East on excessive alert as Israel marks one yr since Hamas assault

At the moment’s agenda: Trump’s expensive pledges; anxious Europeans save extra; Netanyahu’s ‘Washington game’; Starmer ‘wields the knife’; and HTSI interviews Kim Kardashian

Good morning. The Center East is on excessive alert as we speak as Israel marks a yr since Hamas’s horrific assaults through which 1,200 folks have been killed and 251 taken hostage. 1000’s of Israelis are anticipated to pay their respects at memorials and occasions, together with in Tel Aviv’s Hostages Sq., the place households and supporters have campaigned for the discharge of these taken.

In the meantime, combating continued on a number of fronts on the weekend. Israel launched its heaviest 24-hour interval of air strikes on Beirut yesterday and bombed Deir al-Balah in Gaza. Hizbollah hit the Israeli port metropolis of Haifa early this morning, Israel’s navy mentioned.

Worldwide criticism: French President Emmanuel Macron has referred to as for a suspension of weapons shipments to Israel and warned towards additional escalation in Lebanon. Israeli Prime Minister Benjamin Netanyahu labelled these backing an arms embargo a “disgrace”. In the meantime, Irish President Michael D Higgins slammed what he referred to as “outrageous” threats by the Israeli navy for the withdrawal of Eire’s UN peacekeepers in Lebanon.

Israel’s subsequent strikes: The nation is prone to increase combating in Lebanon and Gaza. Yesterday night, Israel declared a 3rd closed navy zone on its border with Lebanon, banning civilians from getting into Manara, Yiftah and Malkia. Israel has additionally referred to as for the entire evacuation of virtually all of northern Gaza, the place 300,000 persons are estimated to stay, echoing warnings it made there all year long earlier than main offensives.

Our reporters will carry you the newest updates from the Center East right here. We’ve extra evaluation on the previous yr of escalating battle under.

• One yr on: Many Israelis have retreated inwards, feeling deserted by a world “gone crazy” that appears to care little for the hostages nonetheless in Gaza.

• A hostage’s mom: Together with her youngest daughter Doron nonetheless held captive by Hamas, Simona Steinbrecher has a plea for the remainder of the world: carry them residence.

• The FT View: Twelve months of battle have left Israel no safer, its folks nonetheless traumatised and the area round it in ache and in flames, writes the editorial board.

• Hope, and a plan: In a Monetary Occasions op-ed, Israel’s former prime minister Ehud Olmert and former Palestinian international minister Nasser al-Kidwa lay out their peace proposal.

Scroll down for our Massive Learn on Netanyahu’s adept manipulation of US international coverage within the 12 months since he launched Israel’s struggle on Hamas. And right here’s what else I’m protecting tabs on as we speak:

• Financial information: Germany has August manufacturing information, whereas Halifax publishes its newest UK home value index.

• Nobel Prize: The award in physiology or drugs will probably be introduced in Sweden, marking the primary of this yr’s prizes.

• EU: Spain is about to suggest mini-coalitions between member states in a bid to finish a decade-long stalemate over harmonising the bloc’s capital and credit score markets.

• Firms: Ferrexpo publishes its manufacturing report, whereas Shell has a quarterly replace. The BBC and different public UK broadcasters are anticipated to announce a new streaming deal with Amazon.

5 extra high tales

1. Donald Trump’s financial plans would elevate US debt by twice as a lot as Kamala Harris’s if he have been elected, based on an evaluation from the Committee for a Accountable Federal Price range. If the previous president wins the White Home and follows via with pledges together with tariffs, tax cuts and immigration curbs, the non-partisan group forecasts federal debt will swell by $7.5tn to 2035.

• US swing states: From a “blue wall” to the American desert, these are the locations the place the 2024 presidential race will probably be determined.

• ‘No more bailouts’: A populist concept that’s good economics and good politics has been lacking from the election season, writes Ruchir Sharma.

2. Unique: US buyers have stepped up funding in European defence expertise start-ups, accounting for the most important chunk of personal capital flowing to the sector this yr amid an increase in international conflicts. Learn the total story.

3. Unique: US companions at EY have been advised the agency will maintain again a few of their pay for 2024 after a tricky monetary yr. The choice to defer 2 per cent of companions’ annual compensation was taken to assist the agency handle money stream, based on folks accustomed to inside communications. Right here’s how the corporate’s rank and file have reacted.

4. European households are saving at increased charges than in the course of the pre-pandemic period, based on information that highlights a transparent divergence from extra buoyant US customers driving the worldwide financial restoration. Whereas People are actually snug to “spend, spend, spend”, right here’s why Europe’s customers are extra cautious.

5. The UK chancellor is anticipated to spare non-public fairness bosses from the highest tax price on this month’s Price range, as she seems for a compromise deal to shut tax “loopholes” that doesn’t drive buyers out of Britain. Rachel Reeves advised the FT that she wouldn’t be “ideological” about taxing the rich, addeding: “We are approaching this in a responsible way.”

• Capital features tax: The Institute for Fiscal Research has urged “serious reform” of the regime to make it fairer and extra growth-friendly.

• Hiring slows: A survey exhibits that UK companies have put hiring on maintain due to uncertainty over the federal government’s plans on tax, industrial technique and staff’ rights.

The Massive Learn

Benjamin Netanyahu way back established what navy analysts name “escalation dominance” over whoever sits within the Oval Workplace. No US president has wished to disentangle from the Center East greater than Joe Biden, but no different president is extra prone to be outlined by the area. Right here’s how Israel’s chief has been, as a former Israeli diplomat put it, “running rings around Biden”.

We’re additionally studying . . . 

• Personal credit score: A speedy growth in finance is coming collectively in an excitable cocktail of threat and alternative that wants pressing monitoring, writes Patrick Jenkins.

• US chips drive: Native semiconductor manufacturing has progressed since Biden’s flagship Chips and Science Act, writes Rana Foroohar. What’s subsequent?

• Starmer’s shaky begin: After a fractious social gathering convention, the UK prime minister has lastly determined to “wield the knife” and “get a grip” on his stumbling administration.

• Jane Avenue: Right here’s how a unusual and opaque New York agency generated internet buying and selling revenues of greater than $10bn for 4 consecutive years.

Chart of the day

Buyers in search of returns from the buoyant American market are turning to European shares which have vital US publicity however are buying and selling at a reduction to their transatlantic counterparts, fairness buyers say.

Take a break from the information

“She understands her position within culture in a way that so many other people in the public eye just don’t,” says British singer Charli XCX of Kim Kardashian. HTSI speaks to the truth queen-turned-retail mogul, whose $4bn attire empire is moulding a brand new era of customers.

Further contributions from Benjamin Wilhelm.