1. The Mecca Alliance goes live

Saudi Arabia, Turkey and Pakistan agreed on Monday to activate the collective deterrence measures of the Mecca Alliance, the defence pact they signed on 7 August. Meeting in emergency session in Riyadh, the three countries decided to "provide the agreed military forces and capabilities and ensure their rapid deployment" to the kingdom, according to Pakistan's foreign ministry. They discussed recent attacks on Saudi Arabia, including incidents targeting Mecca and Medina, but their joint statement did not name the Houthis, nor give troop numbers. The stakes are economic as much as military: with Hormuz still severely constrained, the Red Sea route through Bab al-Mandeb carries most Saudi exports, and war-risk insurance for tankers calling at Yanbu has tripled since July. Brent swung between $101 and $103 on Monday.

2. Spain: Sánchez calls a snap election

Prime Minister Pedro Sánchez called an early general election for 29 November, after Congress rejected two housing decrees on Friday, with the Catalan party Junts voting alongside the conservative Popular Party and the far-right Vox. The measures aimed to curb evictions and real estate speculation, after weeks of protests sparked by the televised eviction of an 87-year-old woman in Madrid. "We need to renew people's support," Sánchez said. It is a risky bet: polls suggest a coalition led by the Popular Party with the support of Vox is the most likely outcome.

3. US services: prices at a four-year high

US service-sector activity expanded at a slower pace in September, with the ISM services index at 54.9, against 55.4 in August and below expectations. But the prices index rose to 74.0, its highest since July 2022, after the manufacturing prices index jumped to 77.9 last week. The 10-year Treasury yield rose to about 5.3%, near its highest levels since 2002, though stocks shrugged it off: the Nasdaq and Nvidia closed at record highs.

4. FBI hack: a key suspect detained in Jordan

A suspected member of the ShinyHunters hacking group, which claims to have stolen data on every FBI employee, has been detained in Jordan and is cooperating with the FBI, three people familiar with the matter told Reuters. Saif al-Din Khader, known online as "Rey", is helping investigators locate other members of the group, two of the sources said. A Reuters analysis of a sample of the stolen data found personal information on FBI employees, including psychiatric and medical details. Another alleged member was earlier arrested in the Netherlands, and the FBI says it has worked with partners to arrest "multiple subjects".