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The World
President Biden called on Netanyahu to conduct the offensive “‘in a manner consistent with international humanitarian law that prioritizes the protection of civilians,’ the White House said on Sunday. It was the first call between the two leaders since the Israeli military expanded its ground operations in Gaza late Friday.” (Axios)
Oil fell after Israel committed forces to Gaza with a more cautious approach than initially vowed, bolstering speculation the fighting may remain contained despite rhetoric from Iran. Global benchmark Brent dropped below $90 a barrel, after rising by almost 3% on Friday as Israel stepped up operations, while West Texas Intermediate fell toward $84. (Bloomberg)
Iranian Foreign Minister Hossein Amirabdollahian said that his country does not want war to “spread out” in the region. Amirabdollahian told CNN, “We always had political media and international support for Palestine. We have never denied this. … But in relation to [the Hamas attack], there was no connection to that data between Iran and this Hamas operation.” (Reuters)
Dozens of countries met for the Ukraine Peace Forum in Malta over the weekend. The forum was the third round of talks based on Ukraine’s “proposed 10-point settlement for the war, called the Peace Formula, which calls for a complete withdrawal of Russian forces, an end of hostilities and reparations.” It was also “intended to rally support for Ukraine and to encourage countries in Africa, Latin America and Asia that have taken a neutral stance in the conflict there not to side with Russia.” Russia was not invited to the forum. (New York Times)
China tech IPOs plunge as regulators turn tough on start-ups: Policy reversal leads to record number of listing applications pulled this year from tech-focused Star Market. (Financial Times)
House prices are declining in the overwhelming majority of the UK, as stubbornly high mortgage costs start to bleed into values. Four in every five local areas saw year-on-year price declines in September, according to property portal Zoopla. That’s up from about 1 in 20 as recently as six months ago, showing buyers and sellers are starting to adapt to the full force of higher interest rates. The figures are based on analysis of house sales in 378 local authorities such as London boroughs and county councils. (Bloomberg)
Australia's tight rental market forces tenants to make tough choices: Rent is now one of the country's biggest inflation drivers. Higher interest rates could force landlords with variable-rate mortgages to raise rents on tenants, pricing them out of their homes. (Reuters)
Homicides in the U.S. dropped significantly in 2022 and have plummeted even faster this year, putting the country on track for one of the biggest declines in killing ever recorded, crime statistics show… but public perception has not kept pace. (Los Angeles Times)
How Migration Flows to Europe and North America Changed: According to the newly released International Migration Outlook 2023, permanent migration to OECD countries reached a new high in 2022 at 6.1 million people. Many developed countries that are part of the group accepted the highest numbers of permanent immigrants since their OECD records started around 15 to 25 years ago, among them Canada, France, the Netherlands and the United Kingdom. The number of international students and asylum seekers also reached a new high in 2022, the latter driven by a steep increase of application in the U.S. The report concludes that the world is dealing with record high levels of displacement due to conflict, while many nations are simultaneously looking to fill labor shortages through skilled immigration. Permanent immigration was dominated by those qualifying through family ties - an estimated 40 percent of all new immigrants across the OECD last year. In the U.S., this number was even higher at 69 percent in 2022, while in across the EU, 26.4 percent of new permanent migrants came through family ties, while 37.5 percent took advantage of the EU's area of free movement. (Statista)
Economy
The United Automobile Workers and Stellantis have reached a tentative agreement on a new contract that would end the UAW walkout. The deal is largely similar to the UAW’s agreement with Ford last week. (New York Times)
“The pieces are lining up for President Joe Biden to lay claim to a victory for his pro-union stance as the second of Detroit’s Big Three car companies reached a tentative agreement” with the UAW. (Politico)
However, the UAW is expanding its strike against General Motors by calling a strike at a Tennessee factory, “a surprise walkout after negotiators had been working nearly around the clock to finalize a new contract this weekend.” UAW President Shawn Fain said in a statement, “We are disappointed by GM’s unnecessary and irresponsible refusal to come to a fair agreement.” (Wall Street Journal)
“About two-thirds of adults say their household expenses have risen over the last year, but only about a quarter have also seen their income increase during the same period. Seventy-three percent describe the national economy as poor.” Americans “are far more likely to say that their household expenses and debt have increased compared to income or savings. Half the public says their household savings decreased over the last year.” (AP/NORC)
The UK and EU “will push the world’s richest countries to end subsidies for foreign oil and gas operations and coal mining” at a closed-door meeting of the Organisation for Economic Co-operation and Development next month. The proposal “to cut off the biggest foreign source of public finance for fossil fuels is expected to spark heated negotiations.” (Financial Times)
German leaders will visit Ghana, Nigeria, Tanzania, and Zambia soon as part of an effort to increase German investment on the continent. Berlin will host a “Compact with Africa” summit with African nations and G20 nations next month. (DW)
Technology
Apple is set to announce three new Mac chips (the M3, M3 Pro and M3 Max) and a shift to more advanced 3-nanometer production technology. There will be major refreshes to the high-end MacBook Pros and the first update to the iMac since spring 2021. The M3 chip line is destined to be a considerable leap from the M2, bringing vastly improved speeds as well as better efficiency to improve battery life on notebooks. (Bloomberg)
“A Federal Reserve meeting typically is the stock-market story of the week. Not so this time, however, as investors are more focused on Apple’s Thursday earnings report than the central bank’s Wednesday interest-rate decision.” Apple, which represents “7.2% of the S&P 500 Index, is facing a slump in smartphone sales, and one of its main suppliers is under investigation in China. A revenue decline is expected for a fourth consecutive quarter, its longest streak in more than two decades.” (Bloomberg)
Apple prepares for a total AirPods overhaul. There are major changes coming to the AirPods in 2024. The company is working on extensive upgrades across the entire line, which has become one of Apple’s most lucrative and important products in a relatively brief period of time. For all its success with the AirPods, Apple knows it needs to keep innovating. It’s facing more competition in the market, especially from lower-priced earbuds from rivals like Jabra, Samsung and Bose. Here’s what to expect: (Bloomberg)
Late 2024: Entry-level fourth-generation AirPods with a new design, updated case, improved audio, better fit and USB-C charging.
Late 2024: A more upscale version of those fourth-generation AirPods that will add active noise cancellation. It also will have a case with speakers to support Find My alerts, helping users locate the device if they lose it.
Late 2024: New AirPods Max with a USB-C port and fresh colors. There won’t be other major changes, but it shows Apple is still committed to this product, which hasn’t been updated since 2020.
2025: Revamped AirPods Pro with a new design and updated chip.
Fidelity has decreased the value of its investment in X by nearly 65% since Elon Musk bought the company then known as Twitter. Fidelity contributed more than $300 million to Musk's $44 billion takeover. (Axios)
A Threads API is in the works, giving developers the ability to create different apps and experiences around the X competitor. Instagram chief Adam Mosseri said in a Sunday post, “We’re working on it. My concern is that it’ll mean a lot more publisher content and not much more creator content, but it still seems like something we need to get done.” (TechCrunch)
Microsoft has been tracking a group it calls Octo Tempest that “stands out for its ability to cash in from data theft hacks that use broad social engineering attacks, painstaking research, and occasional physical threats.” Unlike many ransomware groups, Octo Tempest, “doesn’t encrypt data after gaining illegal access to it. Instead, the threat actor threatens to share the data publicly unless the victim pays a hefty ransom.” (Ars Technica)
Smart Links
Surging US mortgage rates halt rally in homebuilder stocks. (Financial Times)
A Two Sigma Investments researcher adjusted the hedge fund’s investing models without authorization. (Wall Street Journal)
Fed to Weigh How Much Fuel Consumers Have Left After Rate Hikes (Bloomberg)
The U.S. is indefinitely extending export waivers allowing Taiwanese and South Korean chipmakers to supply Chinese facilities with American technology. (Nikkei Asia)
As the market enters correction territory, don’t blame the American consumer (CNBC)