Nears

• President Trump has threatened a "massive attack" against Iran as the ongoing conflict between the two nations approaches the five-month mark. • The escalation follows a cycle of U.S. airstrikes within Iran and retaliatory strikes launched by Tehran against U.S. targets located in the Gulf. • This surge in hostilities signifies a critical turning point in Middle East stability, with the U.S. administration weighing a major military escalation.

• U.S. auto suppliers are accelerating the removal of Chinese connected-car hardware and software to comply with looming federal restrictions. • Under rules adopted in January 2025 and maintained by the Trump administration, Chinese connectivity software is banned for 2027 models, with hardware prohibited by the 2030 model year. • This shift is forcing a major reshaping of automotive supply chains, which is expected to increase production costs for manufacturers.

• The KOSPI index rebounded following a global technology selloff that previously impacted AI-linked chipmakers. • The recovery comes after investors questioned the sustainability of high valuations, despite strong earnings reports from Taiwan Semiconductor Manufacturing Co. • Morgan Stanley analysts suggest the recent correction was deep but did not reach bear market levels, indicating the KOSPI may be nearing its bottom.

• The Israeli parliament has dissolved, setting the stage for national elections scheduled for October. • Prime Minister Benjamin Netanyahu faces a challenging reelection campaign amid intense public scrutiny over his leadership during and after the October 7 attacks. • A growing constitutional crisis has emerged as Netanyahu's government continues to defy the judiciary, raising concerns over the balance of power.

The outgoing Labour leader will have final talks with his senior ministers in No 10 before taking his last PMQsGood morning. Everyone likes a leaving do and today it’s Keir Starmer’s, or at least his parliamentary one. If the colleague who is going is someone you like and admire, then the chance to see them thanked and celebrated is welcome. And if the colleague who is going is someone that you don’t like, or who has stayed too long, then that’s even better. At a good leaving do, there are also decent jokes. And, in politics, a final PMQs is one of the rare moments when even opponents tend to be polite and respectful (which is something people watching from outside the circus tend to like).Starmer is chairing his last cabinet meeting this morning, and taking his final PMQs at noon. Doubtless he has had a chance to study how his predecessors handled this challenge, and he may have read what Tony Blair said on the day he left the Commons – worth quoting again because it is a good summary for those of us who think politics is still a worthy calling.Some may belittle politics but we who are engaged in it know that it is where people stand tall. Although I know that it has many harsh contentions, it is still the arena that sets the heart beating a little faster. If it is, on occasions, the place of low skulduggery, it is more often the place for the pursuit of noble causes. I wish everyone, friend or foe, well. That is that. The end. Continue reading...

• Asian stock markets declined as a deepening selloff in AI chips pressured regional indices, pushing South Korea's KOSPI close to a bear market. • While Chinese equities remained largely flat, Hong Kong’s Hang Seng and Singapore’s FTSE Straits Times bucked the trend, rising nearly 3% and 1% respectively. • Inflation data from Thailand, Taiwan, and the Philippines showed easing headline pressures, though firmer core inflation in the Philippines suggests a potential 25-basis-point rate hike on August 27.

• Former President Trump attempted to remove a Federal Reserve governor, Cook, citing unsubstantiated mortgage fraud allegations which Cook has denied. • The legal dispute centers on a congressional statute requiring governors to be removed only "for cause," a term that remains undefined by law. • Cook argues that the fraud allegations were a pretext used by Trump to oust her due to fundamental disagreements over monetary policy.