Hostilities again ceased while peace talks continued

Hello, this is Leonie Kidd, writing to you from London. Welcome to today’s edition of the Daily Open newsletter.

Geopolitical developments dominated the weekend news, with renewed tensions in Iran quickly de-escalating.

However, markets may need to be convinced that the ceasefire can actually hold, as negotiations are stop-and-go at best.

The USA and Iran have achieved it a new agreement to cease hostilities after renewed fighting between the two sides over the weekend.

In the military clashes, the US attacked Iranian military targets in response to Tehran’s recent attacks on shipping in the Strait of Hormuz.

However, on Sunday, Washington and Tehran agreed to cease hostilities, resume commercial shipping through the strategic waterway and resume technical talks on a peace deal.

“Technical discussions on all areas of the MoU are expected to continue,” a U.S. official told CNBC on Sunday. “Both sides will stand down for now and the ships will be able to move freely.”

Stock futures in the USA are rising slightlywhile trading is mixed across Asia and Europe is set for a subdued opening. Crude oil prices have risen back to over $70 a barrel amid concerns about the fragility of peace negotiations.

This week, central banks take center stage in Sintra, Portugal, where the European Central Bank is hosting its own version of Jackson Hole. Today, ECB President Christine Lagarde opens the event with the opening speech. CNBC is at the event, on Wednesday Sara Eisen moderates the headline panel, be there.

The meeting will take place as The Bank for International Settlements warns That expresses rising national debt on financial fragilities and the sustainability of the AI boom Global risks are increasing, underscoring the need for disciplined policymaking.

In Technology News, Stocks In Samsung and SK Hynix are lower in early trading after both companies unveiled trillion-dollar investment plans. Meanwhile, tensions are brewing between Google and Meta following Alphabet’s announcement Restrict the social media giant’s use of its AI tool Gemini. That’s according to the Financial Times.

– Leonie Kidd

The AI boom is colliding with a new threat: severe weather

While Europeans struggle to stay cool a record-breaking heat waveBig Tech faces its own battle to retain powerful chips AI data centers running.

This week’s temperatures have highlighted the impact weather can have on infrastructure Factories, Nuclear power plants and data centers. Additional demand from air conditioning can overload power grids and lead to power outages that can impact infrastructure. And it’s not just Europe.

Storms have become the main cause of damage in the last three years ZurichRisk portfolio of US data center builders. It is now responsible for a third of the company’s losses, Patrick McBride, head of international construction at Zurich, told CNBC.

–April Roach