Israel arrests citizens tied to Iran spying

Good morning. Here's what happened overnight and what you need to know today.

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1.

Spy sting: Israeli security services dismantled a spy ring linked to Iran, arresting seven Jewish Israeli citizens from the north of the country, including two minors, according to media reports citing Israel’s security agency Shin Bet and police. The group is accused of gathering intelligence on military bases, air force and navy installations, Iron Dome batteries, ports and a power plant in Hadera, according to the reports. The suspects had been recruited by two Iranian intelligence agents over a two-year period and were paid hundreds of thousands of dollars, partly in cryptocurrency, the officials said in a statement. Police described the extent and seriousness of the suspects' actions as among the gravest in Israel’s history. Prosecutors expect to issue indictments in the next few days, they said. (Reuters)(The New York Times)(Bloomberg)

2.

Disney’s world: Walt Disney appointed James Gorman, the former CEO of Morgan Stanley, as its new chairman, replacing Mark Parker, effective January 2025. Gorman is stepping down from his executive chairman role at Morgan Stanley on 31 December, capping a nearly two-decade stint at the firm. He has led Disney’s succession planning since August and will oversee the search for a new CEO to replace Bob Iger, with a decision expected in early 2026. It is the first time Disney has set a clear timeline for succession. Iger, who returned to the CEO role in 2022, extended his contract through December 2026. Disney divisional leaders Dana Walden (TV), Josh D'Amaro (theme parks), Jimmy Pitaro (ESPN) and Alan Bergman (film division) are seen as the internal contenders, according to Reuters. (Capital Brief)(Reuters)(Disney statement)

3.

AI deal: Honeywell and Google have signed an agreement to integrate industrial data with Google's Gemini generative AI to automate operations across sectors like aerospace, healthcare and manufacturing, the companies said. The partnership leverages Honeywell's Forge platform and Google's Vertex AI to boost productivity, reduce maintenance costs and address labour shortages in the industrial sector. It has the potential to upskill employees by enhancing autonomy for workers and allowing less experienced ones to perform at expert levels. Honeywell expects the first AI-enabled tools to be available to customers in 2025, it said. “The path to autonomy requires assets working harder, people working smarter and processes working more efficiently,” Honeywell's CEO Vimal Kapur said in a statement. (Honeywell statement)(Google statement)(Reuters)(CNBC)

4.

AI theft: Rupert Murdoch’s News Corp, owner of the Wall Street Journal and the New York Post, filed a lawsuit against AI startup Perplexity, accusing it of “massive illegal copying” of its journalism, according to media reports citing the filings. The suit alleges Perplexity’s AI-driven answer engine pulls vast quantities of copyrighted news articles, analysis and opinions into its internal database to generate responses that bypass original news sources. “This suit is brought by news publishers who seek redress for Perplexity’s brazen scheme to compete for readers while simultaneously freeriding on the valuable content the publishers produce,” the WSJ quoted the News Corp owned publishers as saying in the complaint, which was filed in New York’s Southern District. In a statement to media, News Corp CEO Robert Thomson said Perplexity “perpetrates an abuse of intellectual property that harms journalists, writers, publishers and News Corp.” (FT)(CNN)(Reuters)(WSJ)

5.

Striking hope: Boeing shares rose by as much as 5.44% on optimism that a new labour contract proposal could end a five-week strike affecting 33,000 workers. The deal offers a 35% pay rise over four years, bonuses and retirement plan contributions. Analysts quoted by Reuters estimate it could cost the planemaker over USD1 billion in extra wage-related expenses, with the machinists set to vote on the proposal on Wednesday, the same day Boeing reports Q3 earnings. The outcome is uncertain as union leaders did not endorse the offer after their previously endorsed deal was voted down in September. Even if the strike ends, analysts warn that production recovery may take up to a year. (Reuters)(Capital Brief)

6.

Border deal: India and China have reached a deal to resolve their four-year military standoff along their disputed Himalayan border, India’s top diplomat said. The agreement aims to restore pre-2020 conditions and will include a patrolling schedule to prevent future confrontations, Reuters reported citing officials. "We reached an agreement on patrolling, and with that we have gone back to where the situation was in 2020 and we can say ... the disengagement process with China has been completed," Indian Foreign Minister Subrahmanyam Jaishankar said. It follows strained relations between the two nuclear powers after clashes on their western Himalayan frontier in 2020, which left 20 Indian and 4 Chinese soldiers dead. The deal opens the door to potentially improved political and economic ties, just ahead of a BRICS summit in Russia where Indian Prime Minister Narendra Modi and Chinese President Xi Jinping might meet. Both sides have yet to fully detail the disengagement plan. (BBC)(Reuters)

7.

Qantas fine: Qantas faces over $100 million in compensation payouts after illegally sacking 1700 ground workers during the pandemic, according to a Federal Court ruling reported by Nine papers. The court reportedly awarded compensation for three test cases ranging from $30,000 to $100,000 each for emotional distress, setting a precedent for the broader case. The workers were sacked as part of cost-cutting measures and despite legal appeals, Qantas’ outsourcing was ruled unlawful by the High Court in 2023. Talks between Qantas and the Transport Workers Union will determine the final payout. CEO Vanessa Hudson issued an apology, promising to expedite payments, while the union criticised Qantas for delaying justice. (SMH)(AFR)

8.

Golden surge: Gold reached a record high, rising 0.7% to USD2,739.50 ($4,100.86) per troy ounce, boosted by Middle East tensions and anticipated rate cuts by central banks, with investors seeking safety in the precious metal. Gold has risen 32% this year, and analysts expect further gains as investors seek safe-haven assets. UBS has a one-year USD3,000 per troy ounce price target. Silver prices also rose sharply, hitting their highest levels since late 2012 at USD34.06 per ounce. Despite a dip in physical demand from China, central bank gold purchases hit a record 483 tonnes in the first half of the year, according to the World Gold Council, the industry body. (Capital Brief)(FT)