Good morning. A ceasefire is taking effect in Gaza. Netflix’s second half is off to a wild start. And we’ve got a guide to help you make the most out of your next trip to Japan. Listen to the day’s top stories.

— Samantha Stewart

Israel began implementing a ceasefire in Gaza after Hamas agreed to release all the hostages it holds, and the militant group’s negotiating chief announced that a deal has been reached to end the war. Israeli troops are expected to start pulling back from their positions in the enclave once the cabinet signs off. It marks the first diplomatic breakthrough after months of failed attempts at stopping the two-year war, which has all but devastated Gaza, left tens of thousands dead and destabilized the Middle East. 

Spot silver briefly topped $51 an ounce as surging demand for haven assets exacerbated supply constraints in the London bullion market. The metal has jumped 70% this year, reaching its highest level since the Hunt brothers’ squeeze in 1980. Stocks on the other hand retreated amid signs of overheating, while gold took a breather after a record-breaking rally. 

China remains a weak spot for European carmakers, with Ferrari plunging after its cautious forecast dashed growth expectations amid tariff uncertainty and slowing sales in the country. Also feeling the squeeze: Porsche, as Chinese motorists are being won over by low-cost EVs from BYD and Xiaomi. The downbeat tone echoes reports from Mercedes and BMW earlier this week.

Unstable connection. The Trump administration is said to be weighing steps to restrict the US operations of TP-Link Systems, whose Wi-Fi equipment is popular in the American market. Authorities are considering issuing an “initial determination” that the company poses a national security threat, following an investigation into its ties to China that began last year. 

Microsoft’s data-center crunch will last longer than it expected as many US regions are experiencing shortages of physical space or servers, according to people familiar. In other tech news, Intel unveiled new products and manufacturing technology, including Panther Lake processors, as part of the US government-backed chipmaker’s effort to regain market share. 

Deep Dive: Netflix’s Wild Ride

A pair of unusual risks has investors questioning Netflix’s sky-high valuation. Even though the streaming pioneer kicked off the second half of the year with its most-watched original film, animated musical hit KPop Demon Hunters, shares have fallen 9% since the end of June, while the Nasdaq 100 gained almost 11%. 

• If the first-half gains weren’t enough to make investors think twice, Donald Trump’s threatened 100% tariff on movies made outside the US and Elon Musk’s urging of his social-media followers to cancel their subscriptions were—sending the stock down for five straight days before it rebounded in a three-day rally.
• It’s unclear what the ultimate outcome of Trump’s levy and Musk’s comments will be, said Cotton Swindell, a senior portfolio manager for a fund that holds the stock. “I’d characterize both as short-term issues and headline risks, but the valuation means there’s not as much room for missteps.”
• As investors parse both issues, Netflix is trying something new. Speaking at Bloomberg’s Screentime conference in Los Angeles, the company announced that it will make its video games available for play on TVs for the first time. 

The Big Take

Opinion

The Sanae Takaichi trade isn’t Abenomics 2.0, and that’s just fine, writes Gearoid Reidy. Japan’s presumptive next PM has a much weaker hand to play than her mentor did. What’s needed now is targeted, smart growth policies. 

Our daily word puzzle with a plot twist.