Israel vows retaliation after Iran’s missile barrage

At present’s agenda: Oil costs surge; Vance-Walz debate; Google’s AI lab assistant; how Andrea Orcel did it; and Martin Wolf on the top of low-cost cash

Good morning. Israeli Prime Minister Benjamin Netanyahu vowed to retaliate towards Iran after the Islamic republic fired scores of ballistic missiles at Israel yesterday because the area slid ever nearer in direction of all-out conflict. Right here’s what we all know.

What occurred: Israel mentioned it intercepted a lot of the estimated 180 missiles, however there have been a “few hits” within the centre and south of the nation. An individual briefed on the state of affairs mentioned Tehran’s meant targets included army and intelligence infrastructure close to Tel Aviv. Iran mentioned 90 per cent of its missiles had hit targets, with state media claiming profitable hits on an air base and civilian airport. Israel’s army mentioned it was not conscious of any casualties from the barrage. The assault got here quickly after two Palestinian shooters killed six folks in Tel Aviv’s southern neighbourhood of Jaffa.

Will the US get dragged into a possible conflict? American naval destroyers helped Israel to shoot down Iran’s missiles in yesterday’s assault, and the US has promised to “work with Israel” to make sure “extreme penalties” for Tehran. The US has additionally been deploying extra forces since Israel assassinated Hizbollah chief Hassan Nasrallah and intensified its bombing of Lebanon. It has about 40,000 troops within the area.

The possibilities of the US not backing Israel are small, writes chief international affairs columnist Gideon Rachman, who notes that the strike has delivered an “October shock” which will profit Donald Trump within the US election. Politicians will wish to seem totally supportive of Israel and keep away from showing smooth on Iran.

We have now extra perception into this newest escalation and its impression:

• Oil costs surge: Brent crude rose as a lot as 5 per cent to $75.40 a barrel yesterday as the potential for all-out conflict stoked provide fears.

• Navy briefing: Whereas Israel’s Iron Dome intercepted most of Iran’s missiles, there have been essential variations from Tehran’s earlier assault in April.

• 12 key moments: From exploding pagers and assassinations to missile strikes, Center East editor Andrew England traces the occasions pushing the area towards full-scale conflict.

Scroll additional to examine how the hostilities will have an effect on the White Home race. And right here’s what else I’m preserving tabs on in the present day:

• Starmer in Brussels: European officers have warned the UK prime minister to not anticipate a straightforward experience as he tries to “reset” Britain’s ties with the EU.

• Plane ‘mega trial’: AIG, Chubb and Lloyd’s of London are amongst insurers going through a multibillion-dollar declare in London’s Excessive Court docket from house owners of planes caught in Russia.

• Markets: ConAgra Manufacturers, JD Sports activities, and Lamb Weston report outcomes. Israel’s markets are closed to mark Rosh Hashana eve.

5 extra prime tales

1. Vice-presidential candidates JD Vance and Tim Walz sparred over US international coverage and immigration in a debate yesterday evening, laying out sharply contrasting visions of America’s position on this planet at a pivotal second within the marketing campaign’s ultimate stretch. Right here’s what they mentioned concerning the escalating battle within the Center East.

2. Unique: Google DeepMind and BioNTech are constructing AI lab assistants to assist researchers plan scientific experiments and higher predict outcomes as corporations race to search out specialised functions for vitality and data-intensive synthetic intelligence fashions. Google’s AI chief mentioned biology was “seeing a revolution” because of AI.

3. China’s outbound funding is surging from already-record ranges, authorities information reveals, as analysts recommend that the nation’s booming clear vitality know-how sector is more and more seeking to arrange manufacturing operations overseas within the face of US and EU tariffs and driving a “tsunami” of inexperienced funding.

4. Unique: Metropolis minister Tulip Siddiq is pushing for the UK to start out issuing “digital gilts” on the blockchain amid issues that Britain must modernise its markets to compete internationally, however the Treasury company chargeable for managing the federal government’s debt has resisted the transfer. George Parker and Michael O’Dwyer have extra particulars.

5. Nike has reported a ten per cent drop in quarterly gross sales and withdrawn its full-year forecast, sending shares down as a lot as 7 per cent in after-hours buying and selling yesterday. This come because the world’s largest sportswear maker navigates a tumultuous interval forward of the arrival of its new chief government.

Information in-depth

Andrea Orcel surprised Germany final week by elevating UniCredit’s stake in Commerzbank to 21 per cent, mirroring techniques from hostile takeover battles of greater than a decade in the past. However a loophole in EU disclosure guidelines has since been closed, making large-scale secret stakebuilding not possible. So how did the Italian lender’s chief handle to sidestep these guidelines?

We’re additionally studying . . . 

• Ozempic and the health club: Weight-loss medication and a brand new concentrate on wellness are pushing many train machines in direction of obsolescence, writes Brooke Masters.

• Eli Lilly’s rise: The corporate is about to turn into the primary $1tn drugmaker by market worth, however traders see warning indicators it has reached “peak enthusiasm”.

• Raspberry Pi: Conceived to allow know-how training, the Cambridge-based firm has charmed its manner a UK laptop revival, writes John Gapper.

• Modi’s massive problem: India faces an financial mismatch: a power scarcity of jobs matched solely by the shortage of appropriate candidates to fill them.

Chart of the day

Have we seen the top of low-cost cash? We’re witnessing the start of an easing cycle in financial coverage, however there are causes to anticipate actual rates of interest to go even greater, writes Martin Wolf.

Take a break from the information

Questioning what to do, purchase and eat this month? From jazz and brandy at Brunswick Home in London to a restaurant with a “deliver your personal truffle” scheme, listed here are 14 good suggestions from HTSI’s writers.

Further contributions from Gordon Smith and Benjamin Wilhelm