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The World
The U.S. says Benjamin Netanyahu “agreed to allow the ‘continuous flow’ of international aid into Gaza from Egypt” during a Sunday phone call with President Biden. Twenty aid trucks entered Gaza on Saturday and at least 15 more on Sunday. (Times of Israel)
As Israel prepares to launch a ground invasion on Gaza, Secretary of State Antony Blinken “said Sunday that Israel has ‘absolutely no intent’ to govern Gaza again.” Blinken said on NBC. “I think we know two things. We can’t go back to the status quo; they can’t go back to the status quo with Hamas being in a position in terms of its governance of Gaza to repeat what it did.” (Politico)
“Former Israeli military, political and intelligence officials have expressed doubts” over Netanyahu’s leadership. A former Israel Defense Forces chief of staff “said that Netanyahu should ‘resign now,’ while a former intelligence official described the government as ‘dysfunctional.’” (The Guardian)
The State Department is warning Americans against traveling to Iraq after recent attacks on U.S. troops and personnel. (Reuters)
The U.S. sent two multi-role unmanned surface vessels to naval bases in Japan, which analysts say could “indicate plans to use drone ships in Washington’s deterrence strategy against Beijing over Taiwan.” The Mariner and Ranger of the U.S. Third Fleet sailed from California to Yokosuka, Japan, in the longest voyage thus far for driverless Navy ships. (South China Morning Post)
“China and the Philippines traded accusations after two ship collisions in the South China Sea.” A Chinese coast guard ship collided with a transport vessel hired by the Philippine military to deliver supplies to troops “stationed on Second Thomas Shoal, which Beijing also claims as part of its territorial waters. Shortly afterwards, a Chinese maritime militia vessel also collided with a Philippine coast guard ship.” (DW)
Argentina election on knife edge as Peronists appear to outperform: Argentina's general election vote was being counted on Sunday evening, with early signals suggesting the under-fire Peronist ruling coalition was performing better than expected, while all eyes remained on far-right libertarian radical Javier Milei. Argentines flocked to the polls on Sunday to vote in a tense national election where wild-haired outsider Milei has hogged the limelight amid the country's worst economic crisis in two decades and rising anger with the traditional elite. (Reuters)
Swiss voters moved to the right in Sunday’s national elections “as concerns about immigration and political correctness trumped fears about climate change and melting glaciers.” The conservative Swiss People's Party, the nation’s biggest political party, “will increase its share of the vote to 29%, 3.4 percentage points higher than the last election in 2019,” according to early projections. (Reuters)
Nine Republicans are running for House speaker, and others may still enter the contest. The group includes “veterans of the House, committee chairmen, a top member of Republican leadership and a sophomore. Virtually none have the kind of commanding national profile normally required of the speaker.” House Republicans are expected to hold a candidate forum Monday evening to hear from the candidates. (New York Times)
Current House Majority Whip Tom Emmer of Minnesota may be the frontrunner, and Kevin McCarthy is backing him, “but after more than two weeks and two candidates failing to garner enough support to earn the gavel, he’s not closing the door on a bid to get his old job back.” McCarthy told NBC, “I’m supporting Tom Emmer, but I’m going to tell you: I’m still a member of Congress, and I’m going to lead in any capacity to protect America.” (Politico)
Economy
The U.S. and Europe both borrowed heavily to navigate the pandemic, but now “a divergence has emerged: Even as the U.S. continues to let deficits rip, Europe’s are on track to narrow significantly.” (Wall Street Journal)
Wild Treasuries Swings Just Starting as Bond Traders ‘Buckle Up’. (Bloomberg)
“After decades of expansion, the nation’s largest drugstore chains are closing hundreds of stores” in response to competition, opioid lawsuits, “and other forces — relegating many already-vulnerable communities into pharmacy deserts.” CVS, Rite Aid, and Walgreens “have signaled plans to collectively shutter more than 1,500 stores in the past two years,” and public health experts are warning that the first neighborhoods to lose their pharmacies are often predominantly Black or Latino. (Washington Post)
Russia’s Gazprom will send additional gas to China and Hungary this year. Gazprom and China National Petroleum Company “have signed an addendum to their 2014 contract that envisions higher gas flows via the Power of Siberia pipeline through the end of this year.” (Bloomberg)
Hyundai has reached a deal with Saudi Arabia’s sovereign wealth fund to develop a $500 million vehicle assembly plant. The facility is likely to be built “at King Abdullah Economic City near Jeddah with an aim to produce 50,000 vehicles a year.” (Bloomberg)
“Owning your own home is a critical step in building wealth in the U.S., but younger Americans increasingly can't swing it, and instead are stuck renting — at steep rates that are eating into their income.” One in three Gen Z-ers say owning a home feels impossible in their lifetime. (Axios)
Technology
Inside Apple’s Big Plan to Bring Generative AI to All Its Devices: One of the most intense and widespread endeavors at Apple Inc. right now is its effort to respond to the AI frenzy sweeping the technology industry. The company has some catching up to do. Apple largely sat on the sidelines when OpenAI’s ChatGPT took off like a rocket last year. It watched as Google and Microsoft Corp. rolled out generative AI versions of their search engines, which spit out convincingly human-like responses to users’ queries. Microsoft also updated its Windows apps with smarter assistants, and Amazon.com Inc. unveiled an AI-enhanced overhaul of Alexa. All the while, the only noteworthy AI release from Apple was an improved auto-correct system in iOS 17. Now, Chief Executive Officer Tim Cook says that Apple has been working on generative AI technology for years. But I can tell you in no uncertain terms that Apple executives were caught off guard by the industry’s sudden AI fever and have been scrambling since late last year to make up for lost time. (Bloomberg)
A new iMac is finally on the way. As I reported in March, the company has been readying the updated 24-inch iMac — a model that could be out soon. How soon? Well, I’m told that Apple is planning a Mac-centered product launch around the end of this month. That could be its chance to announce this model. Another clue: Apple retail stores are in short supply of the iMac, as well as the 13-inch MacBook Pro and high-end MacBook Pro — two other models that may be due for a refresh. If you try to order the products from Apple’s website, several configurations won’t arrive until mid-November. That several-week delay is a clear sign that something is about to happen. I believe the Mac announcement will take place on either the 30th or 31st of this month. Apple is holding earnings on Nov. 2. It will be the first time since 2018 that the company posts its quarterly results in November (usually it occurs in late October). (Bloomberg)
The Cybersecurity and Infrastructure Security Agency, created under President Trump, “is now fighting off increasingly intense threats from hard-right Republicans who argue it’s gone too far and are looking for ways to rein it in.” They say the agency’s work “to combat online disinformation during elections singles out conservative voices and infringes upon free speech rights — an allegation the agency vehemently denies and the Biden administration is contesting in court.” (Politico)
China is investigating Taiwan-based Foxconn over tax and land use. Chinese state media said authorities inspected four Foxconn sites in mainland China. Foxconn founder Terry Gou “is running as an independent candidate in Taiwan’s presidential elections in January, a contest that will have a significant influence on Taiwan’s relationship with China and tensions in the Taiwan Strait.” (Financial Times)
Gou “previously dismissed claims he would be susceptible to Chinese pressure, were he to win January’s election. ‘I will not bow to China’s threats,’ Gou said at the August briefing announcing his presidential bid.” (Bloomberg)
“Several well-monied think tanks focusing on artificial intelligence policy have sprung up in Washington, D.C. in recent months.” Funded by Facebook co-founder Dustin Moskovitz and other tech sector insiders, “their goal is to influence how U.S. lawmakers regulate AI, which has become one of the hottest topics on Capitol Hill since the release of ChatGPT last year.” (Semafor)
Smart Links
Seattle has the highest proportion of advanced tech workers in the U.S. relative to cities with similarly sized tech workforces. (Wall Street Journal)
Scammers exploit Bitcoin ATMs. Will new California laws help crack down on fraud? (Los Angeles Times)
Money Managers With $100 Trillion Confront End of the Bull Market. (Bloomberg)
How Walmart became America’s largest grocer. (CNBC)