Good morning. Today we’re covering:

• India’s controversial broadcast bill withdrawn

• Bangladesh’s vigilantes

• AI-generated job applications

But we start with a shake-up at Starbucks. The world’s largest coffee chain has ousted chief executive Laxman Narasimhan, replacing him with Chipotle’s Brian Niccol, as it responds to falling sales and pressure from an activist investor and its former boss.

Niccol will leave US burrito chain Chipotle at the end of this month and start his new role on September 9, Starbucks said yesterday. His appointment sent the coffee giant’s stock soaring a record 24.5 per cent in New York.

The Starbucks board made the decision to oust Narasimhan after it came under attack from activist investor Elliott Management and Howard Schultz, who spent three stints as the company’s leader, publicly criticised the management’s strategy.

Narasimhan oversaw Starbucks’ first decline in comparable sales since 2020. China, a crucial growth market, has been a particular challenge as the economy slows and competitors make inroads.

Schultz, the company’s biggest independent shareholder, had publicly criticised the chief executive and privately expressed his opposition to a settlement with Elliott. The activist investor had been holding talks with the chain over a number of demands, including board representation, the FT reported previously.

Here’s how Schultz and Elliott responded to the CEO change.

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

• Economic data: The US and UK report July inflation data. The EU publishes second-quarter growth and employment figures, alongside June industrial production.

• RBNZ policy meeting: Economists are unsure whether New Zealand’s central bank will begin cutting interest rates amid signs the economy is at risk of another recession. (Bloomberg)

• Thailand: The Constitutional Court will rule on the potential dismissal of Prime Minister Srettha Thavisin for appointing to his cabinet a former lawyer who was once jailed over an unproven bribery attempt. (Reuters)

• Results: Foxconn, Tencent Holdings, UBS and Commonwealth Bank of Australia report.

Robert Armstrong of Unhedged and other FT experts from London to Tokyo will break down the recent trading turmoil in a subscriber-only webinar today. Register here.

Five more top stories

1. Narendra Modi’s government has withdrawn a draft broadcasting services bill after facing a backlash from online content creators and civil liberties groups. Analysts said the government’s climbdown was a stark reflection of its reduced parliamentary mandate. 

2. Exclusive: Russia has trained its navy to target sites deep inside Europe using nuclear-capable missiles in a potential conflict with Nato, according to secret files seen by the FT. Maps of targets as far-flung as the west coast of France and Barrow-in-Furness in the UK are detailed in a presentation for officers that predates the full-scale invasion of Ukraine.

3. German direct investment into China has risen sharply this year, in a sign that companies in Europe’s largest economy are ignoring pleas from their government to diversify into less geopolitically risky markets. Guy Chazan reports what’s driving the uptick in investment.

4. Brussels has accused its internal market commissioner of going rogue by sending a letter to X owner Elon Musk threatening punishment if content posted on his social media site was found to place EU citizens at risk of “serious harm”. Thierry Breton, the French commissioner, had posted the warning letter on X hours before Musk interviewed Donald Trump on the platform.

5. Cargill, the world’s largest crop trader, said annual revenues dropped by a tenth as ample crop supplies have pushed down prices. The decline in revenues comes as the company overhauls its operations, and after it closed its steel trading operations in China.

News in-depth

With the police in hiding amid widespread looting, vandalism and arson attacks, people across Bangladesh have been guarding their streets since Sheikh Hasina’s regime collapsed last Monday. “Dhaka has turned into Gotham,” said one resident of the capital city, who along with neighbours has stayed up every night since the government fell to search vehicles, question strangers and subdue suspected criminals. Yet analysts warn rising vigilantism risks spiralling out of control, and that a fresh cycle of violence could destabilise the fragile interim government.

We’re also reading . . . 

• Chinese economy: China’s bond market is flashing urgent deflationary warning signs, writes Robin Harding. Policymakers would do well to take heed.

• Kamala Harris: Janan Ganesh argues why the Democratic presidential candidate could still lose despite her celebrated summer.

• Chipmakers face a labour crisis: A human worker shortage may turn out to be the biggest obstacle to the AI industry, writes June Yoon.

Chart of the day

About half of all jobseekers are using artificial intelligence tools to enhance their applications, inundating recruiters with low-quality CVs and cover letters in an already slack labour market. A recent survey suggests that those who used the free version of ChatGPT were less likely to pass recruitment assessments, while those who used the paid-for version were highly likely to.

Take a break from the news

Every year, hundreds of thousands of tourists and enthusiasts flock to Japan to climb Mount Fuji, which is just a couple of hours from Tokyo. Stéphanie Pursad ascended the storied volcano last summer, and shares everything you need to know to reach the top — for hikers of all levels.

Additional contributions from Harvey Nriapia and Irwin Cruz