5 Things You Need to Know to Start Your Day

Good morning. Israel steps up ground operations in Gaza while Netanyahu is facing calls to quit over security lapses. Apple is losing market [View in browser]( [Bloomberg]( Good morning. Israel steps up ground operations in Gaza while Netanyahu is facing calls to quit over security lapses. Apple is losing market share in China and it’s a big week for the US bond market. Here’s what people are talking about. — [Sofia Horta e Costa]( Israel latest Israeli Prime Minister Benjamin Netanyahu [is facing criticism and growing internal calls to resign]( over his unwillingness to accept any responsibility for the Oct. 7 attack by Hamas. He caused a furor with a social media post on Sunday in which he blamed security chiefs for the intelligence lapse, only to then delete it and apologize. Israel over the weekend [widened its ground offensive](in Gaza, raiding a West Bank city and conducting an airstrike in Syria, though the step-up in operations in Gaza was more cautious than many had feared. Hezbollah’s secretary-general, Hassan Nasrallah, will make a televised speech in Lebanon in the afternoon of Nov. 3 — the first public address by the leader of the Iran-backed militant group since the war began. And the wealthy Gulf nation of Qatar [is under pressure to show it can mediate]( between Hamas and its Western allies. Apple’s challenges More of China’s consumers are buying Huawei’s[made-in-China smartphones]( rather than go for Apple’s latest offering. The iPhone 15 series saw sales drop 6% in its launch month compared with the prior year, according to one market researcher, while another said Apple’s shipments were down in the third quarter. Huawei’s return to the mobile arena, with the abrupt release of its Mate 60 and 60 Pro smartphones, drew in buyers in the weeks leading up to the latest iPhone release. Huawei [stunned Washington]( by unveiling an advanced phone processor made by Chinese chipmaker SMIC, triggering celebration in China and accusations in the US that a campaign to contain the country’s tech ascent [had failed](. Apple, which is set to publish earnings on Thursday, will announce two new Macs at an [event later today](. Bond supply Investors are gearing up for the Treasury Department’s [new borrowing plan]( due Wednesday, only hours before the Federal Reserve’s policy statement. The [quarterly refunding]( announcement will reveal the extent to which the Treasury will ramp up sales of longer-term debt to fund a widening budget deficit. Many bond dealers predict a refunding size of $114 billion, representing the same cadence of increases per each refunding security as laid out in the $103 billion August plan. An alternative view would be a smaller bump in longer-term debt, given the surge in yields, and greater reliance on short-maturity bills. Long-dated securities have been tumbling for weeks despite signals from Fed officials they’re “[at or near](” the end of rate hikes. The so-called real neutral rate — the interest rate that neither spurs nor slows the US economy — has at least doubled in the aftermath of the pandemic, say a majority of  respondents in the latest [Bloomberg MLIV Pulse survey](. They also said that both the S&P 500 and the Nasdaq are overvalued. Futures rise S&P 500 futures are up about 0.6%, [pointing to a steadier start on Monday]( after the index capped its worst week in a month. Brent crude oil has dropped below $89 a barrel and gold slipped below $2,000 an ounce. Ten-year Treasury yields edged higher to 4.86%. Stocks globally have lost $12 trillion in value since the end of July as concern mounts that central banks’ “higher-for-longer” interest-rate policies may tip the global economy toward a recession. The S&P 500 entered a technical correction and Morgan Stanley strategist Michael Wilson said investors hoping for a boost to stocks by the end of the year will be disappointed. Coming up… It’s light on the US economic data calendar today, with only the Dallas Fed manufacturing activity index due for its October update. There are no Fed speakers ahead of the central bank’s meeting this week. McDonald’s earnings are due before the bell, while social-media platform Pinterest and real estate firm Welltower report after the close. What we’ve been reading This is what’s caught our eye over the past 24 hours. - Hedge funds are betting on significant gains in [uranium stocks](. - Citadel’s Ken Griffin treats 1,200 Asia-based staff to a [Tokyo Disney trip](. - HSBC may increase its bonus pool by an [extra $300 million](. - Evergrande gets a [final chance](to get its debt restructuring on track. - Two dead, 18 injured in a Tampa mass [shooting early Sunday](. - Extreme heat in the US will [triple heart attack deaths]( by mid-century. - DNA science can help companies [measure their biodiversity impact](. And finally, here's what Joe’s interested in this morning Hello and welcome to Fed Week. On Wednesday we get an FOMC rate decision and the overwhelming consensus is for no change to the policy rate. There's been a fair amount of progress made in 2023 on the inflation front -- enough so that the Fed can probably afford to wait and see a little bit. After this week we get one more Fed meeting this year, on December 13th. And there again, the current expectation is for no rate hike, although as of right now this one is a bit more ambiguous. After all December 13th is still a ways from now. Not only that, but recent inflation readings have shown a little bit of renewed heat. Last week's [Core PCE print jumped the most in 4 months](. The CPI report from two weeks ago also [showed a little bit of buoyancy](. Some of this recent upward inflation has been in the cards for awhile, as in economists had assumed for various reasons that the summer of disinflation would mechanically take a breather in the final few months of the year. So it's not necessarily a reason to think another wave of inflation is here. But it may make things a little tricky for the Fed. [On today's Odd Lots podcast](, we speak with Inflation Insights founder Omair Sharif. Most of the conversation is on the macro impact from the Summer of Strikes (Hollywood, Detroit etc.). But we do talk a little inflation. And one concern is that if the end of the year (for any reason) sees a gradual pickup in inflation, there may be some pressure to hike in December. After all, there's a ton of anxiety about allowing the re-acceleration of inflation (memories of the 1970s loom large). So even if the overall trend is good for 2023, some Q3/Q4 heat could make the end of the year a little dicey. Follow Bloomberg's Joe Weisenthal on X [@TheStalwart]( Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. Follow Us Like getting this newsletter? 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