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Speaker 1: Good morning. It's Tuesday, the seventeenth of October here in London.

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Speaker 1: This is the BlueBag DAYBAC podcast. I'm Caroline Hepka. Coming

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Speaker 1: up today, President Biden gets ready to visit Israel and

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Speaker 1: Jordan in a bid at conflict containment. Putin takes a

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Speaker 1: rare international trip to China to meet with g and

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Speaker 1: a different beat reports suggests that the CEO of Goldman Sachs,

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Speaker 1: David Solomon, is set to stop djaying as the bank

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Speaker 1: gets ready to report earnings. Let's start with a roundup

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Speaker 1: of our top stories. President Biden will travel to Israel

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Speaker 1: tomorrow in a show of US solidarity with its closest

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Speaker 1: ally in the Middle East. Biden will meet with Prime

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Speaker 1: Minister Benjamin Letnyahoo to discuss regional stability and safe zones

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Speaker 1: for civilians in Gaza. The U S Secretory of State A. JONNYE.

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Speaker 1: Blincoln says the trip has a number of aims.

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Speaker 2: He's coming here at a critical moment for Israel, for

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Speaker 2: the region, and for the world, and he's coming here

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Speaker 2: to do the following. First, the President will reaffirm the

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Speaker 2: United States solidarity with Israel and our ironclad commitment to

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Speaker 2: its security. Second, President Biden will underscore our crystal clear

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Speaker 2: message to any actor, state or non state trying to

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Speaker 2: take advantage of this crisis to attack Israel, don't.

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Speaker 1: Blincoln spoke as he continues to visit nations in the

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Speaker 1: region in shuttle diplomacy aimed at preventing a wider regional conflict.

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Speaker 1: America's most senior diplomat has visited Israel twice in the

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Speaker 1: past week, as well as trips to Jordan, Qatar, the

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Speaker 1: United Arab Emirates, Bahrain, Saudi Arabia, and Egypt. Preparations for

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Speaker 1: a ground offensive against Hamas in Gaza are continuing, though

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Speaker 1: after its attack in Israeli territory last weekend, which killed

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Speaker 1: at least one four hundred people and led to around

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Speaker 1: two hundred hostages being taken. Garza's Health Minister Street says

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Speaker 1: that retaliatory strikes have killed close to two thousand, eight hundred,

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Speaker 1: with many more still missing. Israel says that it is

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Speaker 1: keeping open an internal corridor for evacuations of the northern

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Speaker 1: Gaza strip. The Palestinian Prime Minister Mohammed Shataia says that

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Speaker 1: his people will not be forced out of the territory.

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Speaker 3: We are people of a civilization. We are not animals

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Speaker 3: like there are painting us, and our people will not

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Speaker 3: surrender and to let them know that our people will

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Speaker 3: not migrate and will not leave their land.

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Speaker 1: Muhammad Shataya's comments. Karma As, the Eused Commissioner for Crisis Management,

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Speaker 1: has warned that the humanitarian situation in Gaza is about

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Speaker 1: to reach breaking points. The situation has been compounded by

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Speaker 1: Egypt's refusal to open a border crossing at Rafa. The

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Speaker 1: country's foreign minister claims that Israel has refused to take

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Speaker 1: a stance that would allow aid to pass through and

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Speaker 1: foreigners to leave. Moving on to news in Europe, two

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Speaker 1: people were shot and killed in Brussels on Monday evening.

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Speaker 1: The victims were Swedish and the police are investigating a

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Speaker 1: possible terrorist related motive. European cities have been on high

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Speaker 1: alert for possible extremist acts after the attacks by Hamas

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Speaker 1: in Israel. Officials say that there is not yet an

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Speaker 1: indication of a link to the conflict. Russian leader Vladimir

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Speaker 1: Putin has arrived in Beijing for China's Belton Road Forum.

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Speaker 1: Bloomberg's Brian Curtis has more on that story.

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Speaker 4: Putin travels abroad about as much as China. Shijinping almost never.

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Speaker 4: Putin has an arrest warrant issued against him by the

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Speaker 4: International Criminal Court. That's for alleged war crimes in Ukraine.

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Speaker 4: But he's here in China to help rejig the infrastructure

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Speaker 4: scheme that she caused the Project of the Century. Putin

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Speaker 4: will attend the Forum and meet She tomorrow. The two will,

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Speaker 4: no doubt laud their growing real life relationship, one viewed

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Speaker 4: with caution by both Washington and Brussels. As to the

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Speaker 4: Forum itself well, the Project of the Century faces an

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Speaker 4: uncertain future with plenty of critics in Hong Kong. Brian

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Speaker 4: Curtis Bloomberg Radio.

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Speaker 1: The Bank of England chief economist Hugh pill says that

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Speaker 1: sticky inflation in the UK may require a long lasting response.

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Speaker 5: It's the persistent component of inflation which in my mind,

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Speaker 5: I think in the mind of the NBC is associated with,

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Speaker 5: not uniquely caused by, but is associated with domestic pricing decisions,

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Speaker 5: domestic cost annings, domestic wage setting behavior. If we have

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Speaker 5: a persistent component of inflation, it seems natural to me

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Speaker 5: that we have a persistent when a response to.

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Speaker 1: It Pill's comments added to speculation about the Bank of

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Speaker 1: England's plans to hold rates high for some time. Traders

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Speaker 1: are betting that the Bank of England will hold rates

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Speaker 1: in November, though they still favor one more hike in

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Speaker 1: the current cycle by early next year. Arnor has lost

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Speaker 1: his position as the world's second richest person as a

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Speaker 1: selloff in luxury stocks pushed his net worth below that

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Speaker 1: of Amazon founded Jeff Bezos. The LVMH founder's wealth has

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Speaker 1: fallen by six point eight billion dollars when the company

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Speaker 1: reported softer sales growth last week. According to the Bloomberg

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Speaker 1: Billionaires Indegs, Arnau is now worth around one hundred and

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Speaker 1: fifty five billion dollars, just below Bezos's one hundred and

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Speaker 1: fifty six billion. Goldman Sachs's chief executive David Solomon, has

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Speaker 1: stopped his controversial hobby of DJing, according to the Financial

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Speaker 1: Times newspaper. The story comes ahead of the bank's earnings

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Speaker 1: later today. Bloomberg's James Walcock has moore.

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Speaker 6: It was always going to turn heads when the CEO

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Speaker 6: of one of the world's largest banks headlines music festivals,

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Speaker 6: But as Goldman's earning slump and key rainmakers move on

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Speaker 6: criticism of David Solomon's side hustle as a dj has mounted.

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Speaker 6: The CEO has had to apologize to Goldman's board in

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Speaker 6: the past afterly performed in an area accused of flouting

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Speaker 6: social distancing rules during the pandemic. Now the ft report

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Speaker 6: he has given up the hobby. Goldman responded to the story,

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Speaker 6: staying quote, this is not news, and added that the

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Speaker 6: media attention had become a distraction. The bank's third quarter

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Speaker 6: earnings are out later today in London. James Wilcock Bloomberg Radio.

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Speaker 1: Now, let's discuss what is going on in Israel with Hermas.

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Speaker 1: The U S Secretary of State Anthony Blincoln has held

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Speaker 1: hours of talks with Israel ahead of a visit on

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Speaker 1: Wednesday by US President Biden, a trip designed to signal

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Speaker 1: US solidarity with its closest ally in the Middle East,

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Speaker 1: but also help to prevent the conflict from engulfing the region.

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Speaker 1: Israel's Defense Secretary U F. Gallant has told Blincoln that

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Speaker 1: Israeli forces are preparing for a long and costly war,

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Speaker 1: but that Israel would win. Joining me now, as Bloomberg's

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Speaker 1: EMEA News director Roslyn Matheson, welcome to Radio Roles. What

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Speaker 1: is the situation currently and first of all for civilians

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Speaker 1: in Gaza ahead of what we widely expect to be

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Speaker 1: a ground war.

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Speaker 7: Well, we know that the situation there is bad and

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Speaker 7: it's getting worse. We hate EU officials warning that Gaza

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Speaker 7: is near to total collapse. There are very big concerns

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Speaker 7: about access to basic things, including drinkable water. There are

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Speaker 7: reports that some people who even drinking seawater at the

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Speaker 7: moment because there's no access to clean water, and so

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Speaker 7: then you get concerns about disease and other things spreading. Also,

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Speaker 7: what we know is that there's a lot of humanitarian

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Speaker 7: aid that seems to be coming to Gaza, but it's

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Speaker 7: not getting into Gaza. So it's being flown to places

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Speaker 7: like Egypt from the European Union from elsewhere. That includes

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Speaker 7: food and particularly medicine. Obviously they're running short of that,

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Speaker 7: but it's not actually getting across the rougher crossing between

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Speaker 7: Egypt and into Southern are let alone getting to the

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Speaker 7: northern part of Gaza, which is of course bearing the

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Speaker 7: brunt of it at the moment. So the reports out

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Speaker 7: of Gaza are pretty dire. We know that quite a

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Speaker 7: few people have moved south, but still a lot of

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Speaker 7: people are in the north, and that's the area that

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Speaker 7: Israel's indicated it would go into.

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Speaker 1: Has Anthony Blincoln had any results from his intensive meetings

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Speaker 1: with neighboring Arab states and on the point of the

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Speaker 1: Rougher crossing, there seems to be each side blaming each

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Speaker 1: other for the lack of that border opening.

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Speaker 7: Well, it is to say, pardon the phrase, it's a

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Speaker 7: war of words over this crossing. I mean, everybody is

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Speaker 7: accusing the other of not allowing people through. But for

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Speaker 7: days we've had reports that it might open for several

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Speaker 7: hours and it's never happened, and so you've got that

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Speaker 7: bottleneck there.

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Speaker 1: What we do know is the.

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Speaker 7: US territory of State basically went on a blizzard.

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Speaker 6: Through the region.

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Speaker 7: I mean, he went to ten different countries, I think

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Speaker 7: in the space of four or five days. He had

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Speaker 7: endless meetings with the leaders of Arab states and others.

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Speaker 7: And what has he got to show for it, publicly speaking?

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Speaker 8: Not much.

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Speaker 7: It seems we don't know what was agreed potentially behind

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Speaker 7: the scenes, and maybe the result is that nothing happens

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Speaker 7: in terms of if there is a ground war Iran

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Speaker 7: does not step in, so it might be the outcome

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Speaker 7: what he achieves is that something doesn't happen in this case.

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Speaker 7: But ostensibly for now, after all that travel, what we

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Speaker 7: know is the only thing he's got is the agreement

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Speaker 7: with Israel to discuss some sort of humanitarian aid program

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Speaker 7: for Gaza.

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Speaker 1: How long will the ground war? Last? I mentioned Israel's

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Speaker 1: Defense secretary and his statement, what about Leblon and Iran

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Speaker 1: bactez Bella. As you say, but in action would be

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Speaker 1: a significant benefit for people perhaps.

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Speaker 4: Well, that's right.

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Speaker 7: There's just so many unknown knowns in this when we

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Speaker 7: think about how long a ground war might last. That

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Speaker 7: the stuff point is what does the initial ground war

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Speaker 7: look like? Has Israel changed its calculation in the past

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Speaker 7: couple of days and instead of a full throated ground

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Speaker 7: wall with tens or hundreds of thousands of Israeli soldiers

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Speaker 7: in Galza doesn't turn into a more targeted operation? What

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Speaker 7: happens tomorrow with his meeting with the US president? So

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Speaker 7: that does that change the framework at the outset? But

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Speaker 7: as you know, it's a very highly densely populated area.

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Speaker 7: We're talking about door to door, house to house combat. Potentially,

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Speaker 7: how do you identify Harmas, who's Hammas and who's not?

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Speaker 7: And so you are talking about months either way, even

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Speaker 7: if around other actors to not get pulled in.

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Speaker 1: A final thought on hostages, According to a HAMAS spokesperson,

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Speaker 1: Hamas and other groups may be holding as many as

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Speaker 1: two hundred and fifty prisoners in Galza. What is being

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Speaker 1: done for them?

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Speaker 7: It's very difficult to know what can be done for them.

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Speaker 7: They actually don't even know where some of them are.

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Speaker 7: What we do know is, in some cases it's the

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Speaker 7: basic question of do these people need medical care and

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Speaker 7: are they getting medical care? Some of these hostages were

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Speaker 7: injured of course when they were captured, and some have

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Speaker 7: required surgery. So are they getting just basic medical care

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Speaker 7: at this point to keep them alive? And that's sort

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Speaker 7: of the number one priority. Are they able to be

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Speaker 7: to be fed? Are they safe at least for now?

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Speaker 7: But there's very little that anyone can do because the

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Speaker 7: whereabouts at at least some of them are completely unknown.

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Speaker 1: And in terms of a last thought on the call

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Speaker 1: from Putin, there was a phone call between Putin and Netanyahoo.

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Speaker 1: China and Russia have called for a ceasepot. We've talked

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Speaker 1: a lot about US diplomacy in the region, but what

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Speaker 1: do we make of what China and Russia have said.

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Speaker 7: It was very interesting how many days did it take

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Speaker 7: for the Russian president to ring Benjamin Netanyahu, And even

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Speaker 7: when he did, he sort of expressed consult condolence as

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Speaker 7: for what happened. He didn't Hamas by name, And so

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Speaker 7: there's a real sense in that and in a language

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Speaker 7: from China while calling for a ceasefire, of really not

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Speaker 7: wanting to get involved, not wanting to use their influence

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Speaker 7: with Iran and others to try and keep those actors

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Speaker 7: out of it. Certainly a lot of pressure from the

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Speaker 7: West for them to do something, but a real message

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Speaker 7: that they're not particularly interested in getting drawn in. Yes,

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Speaker 7: they're calling for humanitarian aid for Gaza, Yes they want

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Speaker 7: a ceasefire, but they're really not sort of blaming Hamas

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Speaker 7: heavily for this. And interestingly enough, Vladimir Putin pitched up

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Speaker 7: in China this morning. He's on the ground there holding

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Speaker 7: talks with cijpink.

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Speaker 1: W was then thank you so much for being with

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Speaker 1: us and for your time this morning. But in BOKESA

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Speaker 1: news director Roslyn matheson taking us through then the situation

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Speaker 1: in Gaza currently, the US diplomacy by Anthony Blink and

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Speaker 1: ahead of course of President Biden arriving on Wednesday, the expectation.

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Speaker 1: So we've talked about the US taking significant steps in

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Speaker 1: the region, but I want to have a deeper conversation

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Speaker 1: about China. It does have influence with Russia and Iran,

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Speaker 1: and it is sending its top diplomat, China's Middle East Envoy,

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Speaker 1: but not until next week. Bloomberg Opinion columnists Karishma Vesuani

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Speaker 1: says that Beijing is being careful to only offer very

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Speaker 1: limited solutions, and Karrishma joins me. Now, good morning, Karrishma.

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Speaker 1: Roz gave us something of a flavor of the view

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Speaker 1: on China and Russia from the West. They are sticking

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Speaker 1: to the rhetoric of a two state solution in the

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Speaker 1: Middle East, but calling for an immediate ceasepot Is that credible?

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Speaker 8: No, not at all. And you know, Caroline, I was

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Speaker 8: listening to what Roz was saying and fully agree. The

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Speaker 8: issue is that Beijing professes to be a rising world power,

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Speaker 8: the world's second largest economy, a country that you know,

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Speaker 8: other nations should listen to, and that can offer solutions.

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Speaker 8: But what we've seen this time and again echoes of

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Speaker 8: the Ukraine War and the immediate aftermath of that when

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Speaker 8: it first happened. Empty rhetoric, no solutions of substance, I mean, consistently.

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Speaker 8: The position on the two state solution is something that

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Speaker 8: China has held for a long time. It repeatedly says

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Speaker 8: this is the best way out. It has, as Roz

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Speaker 8: was saying earlier, not use the kind of language that

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Speaker 8: you would expect when it comes to condemnation of Hamas.

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Speaker 8: In fact, in the first early days of the conflict,

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Speaker 8: it was criticized by a group of American senators who

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Speaker 8: were in Beijing at the time, Chuck Schumer saying, like,

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Speaker 8: you know, we need to see more action from you China.

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Speaker 8: In the last few days we've seen the United States

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Speaker 8: again urge China to use its influence, particularly with Iran,

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Speaker 8: and try and influence negotiations there if indeed it is

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Speaker 8: possible to do so. But again no action from China.

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Speaker 8: Rhetoric but not a lot of concrete success with that.

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Speaker 1: And so China, also in global conflicts, has often talked

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Speaker 1: about one peace. But you point out in some of

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Speaker 1: your writing that global opinion is deeply wary.

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Speaker 8: Yeah, and I think that's understandable, right, because you have

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Speaker 8: to sort of put your money where your mouth is

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Speaker 8: to use that phrase. And we've heard China talk about peace,

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Speaker 8: but at the same time, we've seen actions in the

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Speaker 8: South China Sea, for instance, that don't necessarily look all

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Speaker 8: that peaceful. We've seen Beijing talk about this two state

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Speaker 8: solution and you know, make representations about how there must

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Speaker 8: be a peaceful outcome in this conflict. Of course, everybody

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Speaker 8: wants that, right, everybody would love for there to be

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Speaker 8: a peaceful outcome to the conflict in the Middle East.

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Speaker 8: But when it comes down to foreign policy ability, China's

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Speaker 8: ambitions are outweighed by what has been described by many

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Speaker 8: people that I've been speaking to for this column, actually

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Speaker 8: is intellectual a lack of intellectual foreign policy capacity. It

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Speaker 8: doesn't have the experience of going out into the world

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Speaker 8: and dealing with messy, geopolitical complex issues, getting its hands dirty.

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Speaker 8: Those are risks it doesn't really want to take, and

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Speaker 8: as a result, the solutions that it offers are often

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Speaker 8: quite basic and simplistic.

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Speaker 1: So what do we expect then, what is this visit

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Speaker 1: from Beijing's Middle East envoy a visit next week, which

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Speaker 1: also seems quite tardy versus US and EU diplomacy.

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Speaker 8: What might we expect, Well, I think for all intents

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Speaker 8: and purposes, it will be a way for Beijing to

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Speaker 8: sort of do a listening tour and gather thoughts and

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Speaker 8: get a sense of what people are feeling on the ground.

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Speaker 4: There.

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Speaker 8: You know, is always use in that. But as you

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Speaker 8: point out, it feels like China's coming to this a

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Speaker 8: little bit late in the game, and by that point,

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Speaker 8: hopefully the situation would have gone in a direction which

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Speaker 8: is in a much better form than what we're seeing today.

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Speaker 8: But underlining all of this, I think is something that's

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Speaker 8: most important. China is not going to get off the

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Speaker 8: global stage. It feels its time has come. The way

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Speaker 8: it goes about interacting as a global player, though, makes

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Speaker 8: it hard to see just how those ambitions can be

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Speaker 8: fully realized, and I think that's something as you see

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Speaker 8: more of China's diplomacy around the world, both outside of

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Speaker 8: China and inside China. As you were just talking about

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Speaker 8: with ROSWI regards to the Belton Road Summit, Interestingly, it's

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Speaker 8: being reported that the Taliban may well be in China

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Speaker 8: for the BI Summit's something I'm watching very closely, indeed,

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Speaker 8: And you know there's a sort of picture that's being

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Speaker 8: painted for us there right Like on the one hand,

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Speaker 8: China's going out trying to be this global peacemaker, but

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Speaker 8: also inviting all sorts of people and all sorts of

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Speaker 8: countries to the table.

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Speaker 1: This has been big Daybreak. You up your morning brief

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