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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: This is the Bimberg Day Baq podcast. Good morning, It's Friday,

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Speaker 2: the tenth of October. I'm Caroline Hepkott in London.

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Speaker 1: And I'm Stephen Caroline Brussels. Coming up today, Israel's government

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Speaker 1: approves a ceasefire plan with Hamas that will release Palestinian

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Speaker 1: prisoners and Israeli hostages held in Gaza, bringing a landmark

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Speaker 1: peace agreement closer to reality.

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Speaker 2: France prepares for its sixth prime minister in two years

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Speaker 2: as political factions jockey for position in a fractious landscape.

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Speaker 1: Plus the return of the bean counter's staff at the

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Speaker 1: US Bureau of Labor Statistics are recalled despite the government's

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Speaker 1: shutdown to prepare September's inflation report.

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Speaker 2: Let's start with a roundup of our top stories.

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Speaker 1: Israel's ministers have signed off on the first stage of

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Speaker 1: the US ceasefire plan, setting up a release of harmssa's

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Speaker 1: hostages within forty eight hours. The plan will see a

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Speaker 1: into Gaza ramped up and Israel's troops begin to withdraw

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Speaker 1: from the strip. Crowds gathered to celebrate in Tel Aviv

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Speaker 1: and across Gaza, with Israel's Prime Minister Benjamin Netanyahu, saying

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Speaker 1: the breakthrough was down to US involvement.

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Speaker 3: We're right up amid this development in the last two years.

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Speaker 3: We've fought doing these two years to that the Tuba warriams.

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Speaker 3: The central one of these warreams is to return the Osages,

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Speaker 3: all of the Osages, the living in the dam, and

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Speaker 3: we're about to achieve that.

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Speaker 4: Group.

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Speaker 1: Despite both Netanyahu's cabinet and Tamasa's chief negotiator having agreed

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Speaker 1: to the deal, challenges remain. The war has reduced Gaza

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Speaker 1: to rubble, left tens of thousands dead, and destabilize them.

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Speaker 1: At least officials have privately told Bloomberg the long term

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Speaker 1: parts of the peace deal will be far harder to achieve,

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Speaker 1: with major hurdles in rebuilding Gaza and preventing further violence.

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Speaker 2: Trump has hailed his own role in bringing about what

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Speaker 2: he called peace in the Middle East, as the US

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Speaker 2: president continues to lobby for a Nobel Peace Prize. Trump

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Speaker 2: says that he will travel to Israel for the release

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Speaker 2: of the hostages in the coming days. The US is

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Speaker 2: also sending two hundred troops to the region to monitor

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Speaker 2: the deal. Trump has been arguing that his achievements deserve

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Speaker 2: a Nobel Peace Prize.

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Speaker 5: Well, look, I made seven deals and now it's a

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Speaker 5: solved the wars. One going for thirty one years, one

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Speaker 5: going thirty four years, one going thirty five years, one

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Speaker 5: going ten years. I made seven deals.

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Speaker 2: This would be number eight, but President Trump is unlikely

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Speaker 2: to win the annual award, which is announced today. Members

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Speaker 2: of the Norwegian Nobel Committee have hinted the White House's

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Speaker 2: campaign has been futile. Some observers have worried there may

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Speaker 2: be a diplomatic and economic fallout for Way should the

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Speaker 2: independent five member Nobel Committee not choose him.

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Speaker 1: France's President Emmanuel Macron is expected to pick a new

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Speaker 1: prime minister by this evening, following the resignation of Sebastian

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Speaker 1: Lacarnu on Monday. In the meantime, the country's business leaders

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Speaker 1: have been jockying for influence with key political players who

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Speaker 1: are likely to wield power in the coming months. Bloombergs

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Speaker 1: Tea Ada Bio has more.

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Speaker 6: France's business elite, a courting socialist leader Julier Fought, who

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Speaker 6: has been tipped as a potential prime minister. Bloomberg understands

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Speaker 6: that The politician dined with the country's most powerful business

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Speaker 6: lobby on Wednesday, ahead of Macron's nomination announcement expected today.

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Speaker 6: During the gathering, he reportedly told industry leaders that another

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Speaker 6: snap election would destabilize the economy more than any policy

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Speaker 6: measures backed by the Socialists, including pausing Macron's controversial pension reform.

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Speaker 6: Although false chances of becoming premier as slim, his party

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Speaker 6: became kingmakers after last year's surprise elections, his group are

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Speaker 6: now essential to form a government that doesn't include the

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Speaker 6: far right. In London, he was at a by Bloomberg Radio.

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Speaker 2: The US Treasury is purchasing the Argentine peso to shore

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Speaker 2: up its value after weeks of sharp declines. Treasury Secretary

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Speaker 2: Scott best End said in a social media post that

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Speaker 2: Washington has finalized a twenty billion dollar currency swap line

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Speaker 2: with Argentina's central bank. This is Eugene Ludwig, a former

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Speaker 2: supervisor of national banks operating in the US, commenting on

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Speaker 2: the rare intervention in currency markets.

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Speaker 7: Queen, No, it's an important country. It's much larger and

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Speaker 7: richer than most people understand, so making sure that this

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Speaker 7: stays stable as well as the currency market generally is

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Speaker 7: a sensible move, but as I say, this is a

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Speaker 7: very hard area.

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Speaker 2: Eugene Ludwig, former Controller of the Currency, speaking to Bloomberg TV.

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Speaker 2: There the Chop administration is launching a financial rescue for

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Speaker 2: political ally Argentinian President Haveavier Milay ahead of upcoming mid

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Speaker 2: term elections. On the twenty sixth of October, Milay welcomed

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Speaker 2: the move and thanked Bessent in a post on x

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Speaker 2: as Argentina's markets rallied on the announcement.

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Speaker 1: Bloomberg has learned that the US Bureau of Labor Statistics

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Speaker 1: is bringing backstaff to finish September's inflation report. The data,

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Speaker 1: which was originally due next week, is used to determine

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Speaker 1: the cost of living adjustment for Social Security recipients. The

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Speaker 1: White House Budget Office has ordered the agency to recall

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Speaker 1: employees to complete the Consumer Price Index in time for

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Speaker 1: release by the end of the month. The BLS had

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Speaker 1: previously suspended all operations during the government shutdown. The last

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Speaker 1: time has shut down delayed the CPI release was in

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Speaker 1: twenty thirteen, when the report was pushed back by two weeks.

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Speaker 2: New York's Attorney General, Letitia James has been indicted by

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Speaker 2: a federal grand jury in Viginia, the second of President

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Speaker 2: Trump's perceived political enemies to be criminally charged in two weeks,

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Speaker 2: James with charge with one counter alleged bank forward and

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Speaker 2: one count of making false statements to financial institutions in

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Speaker 2: relation to a mortgage application. She says the charges are

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Speaker 2: baseless and that the president's goal is quote political retribution

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Speaker 2: at any cost. Speaking to Winnebag's Farsi Laqua, Ray Dalio,

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Speaker 2: the founder of Bridgewater Associates, has warned of in his words,

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Speaker 2: civil war brewing in the US.

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Speaker 8: We're in wars.

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Speaker 9: Okay, there is a financial money war, there's a technology war,

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Speaker 9: there's geopolitical wars, and there are more military wars. And

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Speaker 9: so we have a civil war of some sort which

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Speaker 9: is developing in the United States and elsewhere where there

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Speaker 9: are irreconcilable differences.

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Speaker 2: That was Ray Dalio speaking on leaders with Farci Laqua and.

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Speaker 1: The UK's Prime Minister of Caro Starmer has held deeper

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Speaker 1: trade tie with India. On the final day of his

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Speaker 1: visit to the country, Nerandromodi, the Indian Prime Minister, said

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Speaker 1: his country and the UK had quote shown the world

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Speaker 1: the way on global trade as he raised over five

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Speaker 1: thousand posters in Mumbai celebrating the deal they signed in July.

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Speaker 1: Starmer tended one point seven billion dollars of investments by

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Speaker 1: Indian companies and sectors such as education, defense and technology,

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Speaker 1: which he said would create almost seven thousand jobs in

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Speaker 1: the UK. He reaffirmed Britain's support for India to join

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Speaker 1: it with a permanent seat on the UN Security Council,

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Speaker 1: as he appeared willing to overlook points of disagreements such

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Speaker 1: as India's purchases of Russian oil.

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Speaker 2: Those are our top stories for you this morning in

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Speaker 2: terms of the market, so largely a sell off in

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Speaker 2: Asia and Missish Pacific indexes down by almost eight tenths

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Speaker 2: of one percent after what has been a blistering rally

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Speaker 2: in global stocks. In terms of stock futures, your stock's

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Speaker 2: fifty futures this morning are currently down a tenth of

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Speaker 2: one percent. The dollar is also lower two tenths the

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Speaker 2: Euro trading at one fifty seventy five. Looking at teny

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Speaker 2: of treasury yields right now, those are down a basis

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Speaker 2: point at four twelve. Those are the markets in a moment.

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Speaker 1: We'll bring you more on what to expect in France

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Speaker 1: as we're looking out to the announcement of the next

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Speaker 1: Prime minister later today. But first we want to bring

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Speaker 1: you to the Middle East. Israel's government approving that ceasefire

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Speaker 1: deal with ha Mass that will include releasing thousands of

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Speaker 1: Palestinian prisoners in exchange for any remaining hostages in Gaza.

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Speaker 1: Our head of Middle Eastern North Africa coverage, Stuart Livingston

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Speaker 1: Wallace joins us now for more. Stuart, thanks for being

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Speaker 1: with us. Where are we now in implementing this ceasefire

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Speaker 1: deal and what are the next hurdles that need to

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Speaker 1: be overcome?

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Speaker 4: Good morning, So, I mean it all seems to be

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Speaker 4: going reasonably smoothly. It went to the Israeli cabinet last

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Speaker 4: night was approved. So we're now in a sort of

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Speaker 4: a twenty four hour initial phase where the idea, if

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Speaker 4: that is, the Israeli army will start withdrawing from its

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Speaker 4: current positions to sort of a pre agreed line. They

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Speaker 4: will still be inside, but it's going to be over

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Speaker 4: a significantly smaller amount of territory. At that stage, you

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Speaker 4: then have a seventy two hour period where the hostages,

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Speaker 4: both those still alive and those dead are hopefully going

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Speaker 4: to be brought out of Gaza and back into Israel,

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Speaker 4: and as you said, simultaneously, a release of Palestinian prisoners

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Speaker 4: into well, presumably into Gaza. So basically we're looking at

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Speaker 4: the next four days it's going to unfold. And again

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Speaker 4: this is very much phase one. And then in terms

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Speaker 4: of the next hurdles, I mean, I think there's a

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Speaker 4: long way to go, and you know, we should be

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Speaker 4: under no illusion about how difficult some of those questions are,

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Speaker 4: notably on the question of the you know, the complete

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Speaker 4: disarmament of a mass, the future governance of the Gaza Strip,

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Speaker 4: and perhaps most importantly the reconstruction of the Gaza Strip.

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Speaker 2: What do we know about the US's commitment to overseeing

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Speaker 2: the deal, also militarily overseeing the commitment to deal?

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Speaker 4: I mean, certainly in terms of overseeing the deal from

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Speaker 4: a sort of political and logistical perspective, the suggestion is

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Speaker 4: that Trump would head this committee that would sort of

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Speaker 4: keep an eye on things in direct traffic, as it were.

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Speaker 4: In terms of the military commitment, I mean, we did

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Speaker 4: have a statement from Sentacom, that is the bit of

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Speaker 4: the Department of Defense that looks after the Middle East,

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Speaker 4: as well as Central Asia and South Asia. They said

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Speaker 4: they're going to have two one hundred people on the

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Speaker 4: ground in the Middle East, without specifying exactly where they

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Speaker 4: will be. Now, SYNCOM has a forward base in Katar,

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Speaker 4: a rather large one, so I suppose it's conceivable they're

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Speaker 4: going to do it from there. But I don't think

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Speaker 4: anyone should interpret that as a commitment for US troops

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Speaker 4: on the ground, particularly in Gaza, and they were very

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Speaker 4: clear they had no intention of having troops stationed inside Gaza.

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Speaker 1: Stewart Our Big Take report today looks at what's next

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Speaker 1: in Gaza, feeding the population, reconstruction and governance. I mean,

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Speaker 1: how big a challenge is ahead for Gaza's future.

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Speaker 4: I mean enormous. I mean, I think arguably it's going

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Speaker 4: to be one of the big biggest engineering challenges of

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Speaker 4: modern times, just because of the scale of destruction and

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Speaker 4: the amount of ordinance that has that has been dropped

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Speaker 4: on Gaza. You know that just clearing the rubble and

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Speaker 4: making it safe so that you can start building again

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Speaker 4: is going to take an awful long time. And you know,

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Speaker 4: we've had lots of guestmates out there. I'm not sure

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Speaker 4: how accurate any of them could possibly be given that

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Speaker 4: you know, there's so few people that have actually gone

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Speaker 4: and seen what's what's there. But we did have a

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Speaker 4: reporter inside Southern Gaza yesterday and you know he's certainly

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Speaker 4: reported back that it's exactly what you would expect or

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Speaker 4: what you've seen on the photos, that it is very

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Speaker 4: wide scale destruction. So it's going to take a long time,

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Speaker 4: it's going to take a lot of money, and it's

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Speaker 4: not clear at this stage quite where that funding is

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Speaker 4: going to come from or indeed who is going to

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Speaker 4: carry out the work. But you know, what you can

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Speaker 4: say on a more positive side is that there is

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Speaker 4: clearly a great deal of goodwill to make progress here

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Speaker 4: and to try and right the situation.

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Speaker 2: Steve, thank you so much for being with us this

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Speaker 2: morning as we continue to follow all of the details

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Speaker 2: as they emerge from the Middle East. That is Stuart

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Speaker 2: Livingston Wallace, Bloomberg's head of Middle East and North Africa coverage.

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Speaker 2: Thank you, stay with us. More from Bloomberg daybaqube coming

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Speaker 2: up after this.

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Speaker 8: Now.

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Speaker 1: In France, we'll find out later today who will be

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Speaker 1: the country's next prime minister. That person will need to

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Speaker 1: build a consensus around a budget on an accelerated timetable.

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Speaker 1: After Sebastian mcconne resigned from the job on Monday. Richard Bravo,

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Speaker 1: who leads our team covering government and economics in Western Europe,

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Speaker 1: joins us now for more rich You and I have

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Speaker 1: been in Paris all week covering this story. Are we

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Speaker 1: any closer this Friday morning to knowing who President Macron

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Speaker 1: might pick?

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Speaker 8: Yeah? I don't think we're any closer to knowing exactly

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Speaker 8: who he will pick to be the next prime minister.

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Speaker 8: But the important thing to focus on is the fact

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Speaker 8: that he's naming a prime minister at all. Earlier this

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Speaker 8: week it was increasingly looking like mccron would call another

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Speaker 8: snap away that would have meant even more political chaos

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Speaker 8: and financial instability. So even though it's not clear who

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Speaker 8: exactly Macron could name, and the list is very long

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Speaker 8: and it does run the political gamut, most see this

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Speaker 8: as at least bad option, So we're really looking forward

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Speaker 8: to seeing who he picks, which we're expecting to find

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Speaker 8: out later this evening.

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Speaker 2: Well, Blimberg's been writing about how business leaders have been

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Speaker 2: courting the Socialist Party leader Olivier four. How important is

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Speaker 2: he do you think to what happens next.

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Speaker 8: Well, in order to understand the political dynamics at work here,

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Speaker 8: you have to look back to last summer's European elections,

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Speaker 8: when the far right made historic gains in France, and

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Speaker 8: that led Macron to cast snap election in France because

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Speaker 8: he thought that a new election might reinforce his centrist coalition. Unfortunately,

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Speaker 8: the opposite thing happened, and the are right made even

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Speaker 8: more games and it fragmented the National Assembly, that effectively

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Speaker 8: made the Socialist king makers in parliament for anyone trying

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Speaker 8: to form a workable government. So in effect, Olivia for

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Speaker 8: isn't an incredibly important individual in the grand scheme of things.

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Speaker 8: It's just that he leads a party that is necessary

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Speaker 8: for anyone trying to form a centrist government in France

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Speaker 8: at this moment.

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Speaker 1: So rich we've taken back out our guests who boards

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Speaker 1: to try and decide who might be the next Prime

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Speaker 1: minister of France. But when we do find out, how

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Speaker 1: long will this next prime minister have to make progress

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Speaker 1: before the specter of snap elections comes back.

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Speaker 8: Well, that's a really important question and the new prime

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Speaker 8: minister is going to have to act very quickly. So

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Speaker 8: looking at the timetable, a new cabinet will have to

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Speaker 8: be named almost immediately, and if they want to pass

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Speaker 8: a budget through the normal process, that will have to

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Speaker 8: be proposed on Monday. So that's not a lot of

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Speaker 8: time to choose a cabinet and get a very complicated

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Speaker 8: budget together, and that budget will need to be passed

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Speaker 8: by the end of the year. So we expect to

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Speaker 8: see things move very quickly, and there really is no

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Speaker 8: guarantee of success in any of this, whether it's naming

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Speaker 8: a cabinet or getting a budget together.

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Speaker 1: This is Bloomberg Daybreak Europe, your morning brief on the

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