FirstFT: Israel declares ‘complete siege’ on Gaza amid hostage crisis

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Israel imposed a “complete siege” of the Gaza Strip, mobilised a record 300,000 reservists and pummelled the Hamas-controlled enclave by air as the Palestinian militant group threatened the lives of dozens of hostages.

The Israeli military said it had moved on to the offensive after regaining control of territory infiltrated by Hamas during the weekend attack, the deadliest within Israel since 1948.

Israeli prime minister Benjamin Netanyahu said the campaign was “just getting started” as he vowed a “difficult and terrible” experience for Hamas and promised “to change the Middle East”.

But Hamas said on Monday evening it would execute a captive for each new air strike that hit Palestinian civilians and came without warning. The group has abducted at least 100 people, including women, children, Israeli soldiers and foreign nationals.

More than 1,500 people have died since Saturday, including more than 900 Israeli civilians and troops, and 687 people in Gaza, according to Israeli media and a Palestinian health ministry spokesman. Here’s the latest from the third day of war.

We have more coverage and analysis of the attack here:

And here’s what else I’m keeping tabs on today:

• Global economy: The IMF will publish its Global Economic Outlook and Global Financial Stability Report.

• Taiwan markets closed: On today’s Double Tenth National Day, Taiwan marks the anniversary of the Wuchang Uprising.

• Companies: Samsung will issue its third-quarter pre-earnings guidance.

Five more top stories

1. Advisers to Evergrande’s international bondholders have warned of a potential liquidation after the Chinese property developer’s restructuring plan was unexpectedly derailed last month. The bondholder group criticised what they called Evergrande’s “botched efforts to obtain PRC regulatory approval”.

2. Claudia Goldin has won the Nobel Prize for economics for advancing the understanding of women’s labour market outcomes. The committee awarding the prize said the Harvard professor had “provided the first comprehensive account of women’s earnings and labour market outcomes throughout the centuries”.

3. China’s largest vaccine company by revenue has agreed to buy £2.5bn worth of GSK’s shingles vaccine, the UK-based pharmaceutical company has said. The deal with Zhifei comes as GSK aims to double global sales of its best selling shot, Shingrix, by 2026. Read more on the deal.

4. Sanctioned oligarch Mikhail Fridman has returned to Moscow for the first time since Russia’s invasion of Ukraine. Fridman arrived in Moscow from Israel over the weekend, according to two people familiar with the matter. He had previously been in London despite western sanctions against him.

5. Odey Asset Management’s wealth business is to close and return assets to clients months after founder Crispin Odey was accused of sexual misconduct. The wealth business is closing in both Guernsey and the UK, according to people familiar with the matter. The Financial Conduct Authority said it would “work closely with the firm as it winds down, to ensure clients are treated fairly.” Read the full story.

Please join us on October 11 at 2pm BST/9pm HKT for an exclusive webinar exploring the macroeconomic trends in Japan and how they are impacting the recent rally in the Japanese stock market. Register here today.

The Big Read

Turkey’s Recep Tayyip Erdoğan, known for his unorthodox economic policies, has previously called interest rates the “mother and father of all evil”. Since his re-election, the president appears to have abandoned his unconventional ideas, but investors remain wary. Has Erdoğan really embraced a more traditional economic approach?

We’re also reading . . . 

• ‘Even with a weak economy, Xi is feeling emboldened’: The former Donald Trump adviser and China expert Matt Pottinger talks to Henry Mance.

• Future of work: The coronavirus pandemic has prompted a move to greener, better equipped and more central offices.

• Holy roast: From crypt to cathedral, these eight London coffee stops are located within in beautiful and historic places of worship.

Chart of the day

Hong Kong’s largest developers have shed a fifth of their market value this year, as the city’s dollar peg forces it to match the Federal Reserve’s “higher for longer” approach to interest rates. Analysts say economic fallout from the peg’s defence and slowing Chinese growth could drag developer shares even lower.

Take a break from the news

The new podcast McCartney: A Life in Lyrics is built on recordings never intended for public consumption. It’s a triumph — and a rarity in music podcasts, writes Fiona Sturges.

Additional contributions from Gordon Smith and Tee Zhuo