Ceasefire anticipated to forestall Iran assault on Israel, says Biden

Good morning. At this time we’re masking:

• Mars’s settlement to amass Kellanova

• The Panama Canal’s wrestle to draw merchants

• Dwelling Depot’s gross sales droop

However first, US President Joe Biden has mentioned that he doesn’t count on Iran to hold out a retaliatory assault on Israel if a ceasefire deal is reached and the discharge of Israeli hostages is secured.

Washington has been making ready for Tehran or its proxies to strike Israel after the assassinations of Hamas’s political chief Ismail Haniyeh and Hizbollah’s navy chief Fuad Shukr. The US this week despatched extra fighter jets and warships to assist Israel fend off an assault.  

An Iranian regime insider informed the FT that Tehran had been purposefully obscure about its plans as a part of “a psychological warfare campaign to keep Israel’s military, security and logistical capabilities on edge”. US officers yesterday mentioned an assault from Iran on Israel didn’t look like imminent.

The US has ratcheted up diplomatic efforts to attempt to head off an Iranian retaliation. High White Home officers have travelled to and from the area this week, forward of ceasefire talks tomorrow which can be mediated by the US, Qatar and Egypt.

Right here’s what else I’m preserving tabs on at the moment:

• Financial knowledge: US publishes July CPI inflation fee knowledge.

• Sudan conflict: US-mediated ceasefire talks between the Sudanese military and the paramilitary Fast Help Forces start in Switzerland.

• Outcomes: Aviva, Cisco, Cardinal Well being and UBS report.

Robert Armstrong of Unhedged and different FT specialists from London to Tokyo will break down the current buying and selling turmoil in a subscriber-only webinar at 7am ET at the moment. Register right here.

5 extra prime tales

1. Confectionery large Mars has reached an settlement to amass Kellanova at a greater than $29bn valuation in one of many largest offers of the yr, in keeping with folks aware of the matter.

2. Dwelling Depot has lower its outlook for gross sales, the newest sign that US customers are retrenching spending at a time of excessive rates of interest. Comparable gross sales would fall by 3 per cent to 4 per cent this yr, it mentioned.

3. The Panama Canal is struggling to steer merchants in liquefied pure fuel and meals commodities to return to the commerce route after they have been compelled out by a historic drought final yr, highlighting how local weather change threatens to reshape world commerce.

4. A reshuffle at JPMorgan Chase has sparked a lot of high-profile departures of executives near its president, Daniel Pinto, feeding hypothesis about his future on the Wall Avenue financial institution.

5. Elon Musk’s synthetic intelligence start-up xAI has launched improved variations of its know-how. It claims Grok-2 and Grok-2 mini, a smaller mannequin, outperform rivals from OpenAI and Anthropic.

The Large Learn

Tech giants are poised to develop into a few of the largest power customers of the long run as they race to develop synthetic intelligence. Quietly, they’re working behind the scenes to rewrite the foundations that govern how air pollution from energy use is disclosed.

We’re additionally studying . . . 

• SEC: Hedge funds and buyout corporations are launching a wave of authorized challenges towards the US regulator’s authority because it seeks to drive better transparency on the sector.

• Japan’s premier: Prime Minister Fumio Kishida is about to step down after asserting he wouldn’t search re-election in a contest subsequent month to steer the ruling Liberal Democratic occasion.

Chart of the day

Yesterday, Starbucks ousted its chief Laxman Narasimhan and changed him with Chipotle’s Brian Niccol. Based on one analyst, Niccol is “considered to be almost the LeBron James or the Tom Brady or the Messi of the restaurant industry”. Can he deliver the profitable elements that pushed Chipotle’s inventory worth up by 800 per cent to his new job main the world’s largest espresso chain?

Take a break from the information

Now that proof of an aquifer of liquid water has been discovered on Mars, scientists are questioning what to do subsequent. The FT’s science commentator Anjana Ahuja explores the practicality of looking out the reservoir for all times, whereas shielding it from the worst piratical instincts of our personal species.

Further contributions from Tee Zhuo and Benjamin Wilhelm