Good morning. Israel and Hamas may be nearing a peace deal. Bridgestone is gearing up for a rougher second half. And Japan’s love for baseball is on the upswing. Listen to the day’s top stories.

— Samantha Stewart

A peace deal to end the two-year war in Gaza may be on the horizon, with Donald Trump saying an accord is “very close” ahead of a possible trip to the Middle East this weekend. Officials from Israel and Hamas struck a cautiously positive tone amid talks in Egypt. A senior Israeli official said negotiators were aiming to announce a deal as soon as Friday.

A renewed wave of dip-buying spurred a rebound in equities on speculation that stocks still have room to run after a brief pause in the six-month rally from the edge of a bear market. Gold continued its tear, pushing higher after topping $4,000 an ounce, driven by concerns over the US economy and government shutdown.

Trouble in paradise. EU officials view new US trade demands as potentially undercutting a recent agreement and risking renewed conflict, people familiar said. Washington has been seeking an opening to discuss the bloc’s legislation—including digital and technology rules, as well as corporate compliance and climate regulations—raising concerns over regulatory autonomy.

Thai Prime Minister Anutin Charnvirakul dismissed the need for Trump to mediate a peace deal with Cambodia, distancing himself from the US president’s efforts to win a Nobel Prize. Anutin said Trump can only help now if he convinces Cambodia to meet Thailand’s demands. “We’re neighbors, our countries share a border, while the mediator is all the way over there on another continent,” he said.

Saudi Arabia is in talks to raise as much as $10 billion in a rare loan deal, including from Wall Street banks, according to people familiar. It marks the latest step in the kingdom’s effort to line up financing for its diversification plans. Still, no final decisions have been made, and Riyadh could ultimately decide not to proceed with the deal if it doesn’t get the right price or if market conditions are unfavorable.

Deep Dive: Running Out of Road

Photographer: Toru Hanai/Bloomberg

Bridgestone is bracing for a tougher second half as its US business contends with a sharp drop in truck-tire demand, the impact of tariffs and the fallout from a cyberattack that disrupted production.

• Demand has been falling sharply since early August, CEO Shuichi Ishibashi said. But estimated tariff costs began weighing on results as early as July, as buffers from front-loading, inventories and shipping lead times waned.
• The challenges Bridgestone is facing—namely levies, weaker US capital spending and shifting trade flows—are nothing new for Japan’s export-driven manufacturers, which have been shaken by the rapidly changing trade landscape.
• But there’s one region that could be the tiremaker’s saving grace: Brazil. Ishibashi reiterated the company’s goal of making its operations in the South American country, where Chinese-made tires are flooding the market, profitable by the end of this fiscal year. 

Opinion

America’s stablecoin push is shaping up to be a highway that will carry US influence around the world, Andy Mukherjee writes. It’s a new front of geopolitical competition that Xi Jinping isn’t taking lightly. 

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Before You Go

Photographer: Andrew Faulk for Bloomberg Markets

Big and getting bigger. Japanese baseball’s popularity is skyrocketing, with the 12 Nippon Professional Baseball teams drawing 26.7 million spectators in 2024, the highest tally since 1950. Looking to break the ice with co-workers at a game on your next business trip to the archipelago? Here’s a guide.