WEBVTT - U.S, Iran Talks, Israel Debt Rating Cut

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<v Speaker 1>Good morning.

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<v Speaker 2>I'm Brian Curtis and I'm Doug Prisner. Here are the

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<v Speaker 2>stories we're following today.

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<v Speaker 1>All right, now it's time for global needs. US is

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<v Speaker 1>expressing concern on multiple fronts today about potential spread of

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<v Speaker 1>the war in the Middle East, and Baxter is covering

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<v Speaker 1>that as part of the Middle East story and has

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<v Speaker 1>all of this reporting from San Francisco.

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<v Speaker 3>Ed all right, thank you, Brian. Right, US ratcheting up

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<v Speaker 3>efforts to keep the Middle East war from spreading. Secretary

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<v Speaker 3>of State Anthony Blincoln will extend his trip further and

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<v Speaker 3>go back to Israel.

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<v Speaker 4>I've heard from virtually every partner. Was a determination I've

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<v Speaker 4>shared view that we have to do everything possible to

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<v Speaker 4>make sure this doesn't spread other places.

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<v Speaker 3>That says Gaza civilians should not suffer.

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<v Speaker 4>As I said in Tel Aviv, as President Biden has said,

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<v Speaker 4>the way that Israel does this matters, needs to do

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<v Speaker 4>it in a way that affirms the shared values that

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<v Speaker 4>we have for human life and human dignity.

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<v Speaker 3>And meanwhile, the US is confirming at least thirty US

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<v Speaker 3>citizens are confirmed dead in the violence. About a million

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<v Speaker 3>people have been told to evacuate northern Gaza. Meanwhile, ahead

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<v Speaker 3>of an expected Israeli assault on Hamas and AS Ready

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<v Speaker 3>Defense Forces spokesman Lieutenant Colonel Peter Lerner says Hamas is

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<v Speaker 3>trying to prevent the safe evacuation of people.

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<v Speaker 5>They establish checkpoints to try and prevent people. They disseminated

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<v Speaker 5>messaging telling people to ignore that. Ignore that, and it

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<v Speaker 5>just goes to show how Hamas is actually trying to

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<v Speaker 5>put the people of Gaza at more risk.

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<v Speaker 3>And White House National Security Advisor Jake Sullivan on ABC

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<v Speaker 3>has heard on Bloomberg says US is trying to get

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<v Speaker 3>aid into Gaza.

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<v Speaker 6>We are in touch with our Israeli counterparts. We're in

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<v Speaker 6>touch with the United Nations to help secure the necessary

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<v Speaker 6>supplies of food, water, and medicine to the citizens of Gaza,

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<v Speaker 6>those Palestinians who have nothing to do with the barbaric

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<v Speaker 6>terrorists who carried out this attack.

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<v Speaker 3>Meanwhile, Hezbollah has attacked Israeli army positions near the border

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<v Speaker 3>with Lebanon Ran backed Hezbola has fired guided missiles again

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<v Speaker 3>at the post and also destroyed a tank with live ammunition. Meanwhile,

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<v Speaker 3>a bipartisan group of US lawmakers is in Israel, and

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<v Speaker 3>Senate Majority Leader Chuck Schumer says an aid package is

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<v Speaker 3>on the way.

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<v Speaker 7>We're not waiting for the House, plain and simple, that

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<v Speaker 7>would be foolish. But we believe if we put together

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<v Speaker 7>a strong package and pass it with an overwhelming, strong

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<v Speaker 7>bipartisan majority, it will put pressure on the House one.

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<v Speaker 5>Way or another.

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<v Speaker 3>Yes, so nothing. They're not waiting for the House, is

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<v Speaker 3>his bottom line. Meanwhile, the House will attempt to elect

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<v Speaker 3>a speaker on Tuesday. Members notified today the vote will

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<v Speaker 3>occur the Republican caucuses and nominated Jim Jordan for the job.

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<v Speaker 3>Whether or not he has a sport to get it

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<v Speaker 3>done is still a question. Meanwhile, House Minority Leader Hakim

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<v Speaker 3>Jeffrey says he's an informal talks with Republican colleagues about

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<v Speaker 3>a potential solution to finding a speaker. Jeffreys on NBC

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<v Speaker 3>has heard here on Bloomberg's as Democrats are ready willing

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<v Speaker 3>and able to find a solution.

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<v Speaker 5>There are informal conversations that have been underway. When we

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<v Speaker 5>get back to Washington tomorrow, it's important to begin to

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<v Speaker 5>formalize those discussions.

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<v Speaker 3>So then it'll wait for House Republicans and for Chuck

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<v Speaker 3>Schumer to get back Philippines have asked China to stop

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<v Speaker 3>dangerous maneuvers and aggressive actions in the South China Sea.

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<v Speaker 3>It is warning a potential collation of the disputed waters.

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<v Speaker 3>Philippine military says they had to send warnings to Chinese

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<v Speaker 3>ships to avoid danger. Global newspower by more than twenty

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<v Speaker 3>seven hundred journalists and analysts in over one hundred twenty

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<v Speaker 3>countries in San Francisco, I'med Baxter and this is Bloomberg.

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<v Speaker 1>Thanks very much. This is Bloomberg Daybreak Asia. I'm Brian

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<v Speaker 1>Curtis along with Doug Krisner. Our colleague Paul Allen will

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<v Speaker 1>join us a little later.

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<v Speaker 8>Well.

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<v Speaker 1>Israel is hoping to avoid a debt rating cut as

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<v Speaker 1>investors eye the impact of this war with Hamas we

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<v Speaker 1>get the story from Bloomberg's Denise Pilargreni.

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<v Speaker 9>A top Israeli official in charge of the country's debt

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<v Speaker 9>says Israel might be able to avoid its first ever

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<v Speaker 9>rating down great thanks to sound finances. The senior official

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<v Speaker 9>at the Finance Ministry does say, however, that all bets

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<v Speaker 9>would be off if the country's war drags out for

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<v Speaker 9>a long time. The official also calls a credit downgrade

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<v Speaker 9>an extreme scenario and says it would be more likely

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<v Speaker 9>Israel would be put on credit watch. The cost to

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<v Speaker 9>ensure Israeli bonds against potential default did soar last week

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<v Speaker 9>to the highest point in a decade, but Moody's Investor

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<v Speaker 9>Service Friday postponed a plan review of Israel's rating and

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<v Speaker 9>said it would continue to evaluate instead. Denise Pelgridy Bloomberg Radio.

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<v Speaker 2>The head of the World Trade Organization, is warning that

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<v Speaker 2>war between Israel and Hamas will have a big impact

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<v Speaker 2>on global trade if the conflict were to spread. More

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<v Speaker 2>from Bloomberg Steve Rappaport.

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<v Speaker 10>WTO Director General and Gozi al konjo Awella says the

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<v Speaker 10>war will only further weeken global trade, already crippled by

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<v Speaker 10>high interest rates, China's stressed real estate market, and Russia's

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<v Speaker 10>war with Ukraine. Doctor okonjo Owella says she hopes the

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<v Speaker 10>conflict ends soon and it's contained, adding everybody's on eggshells

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<v Speaker 10>and hoping for the best. The WTO last week cut

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<v Speaker 10>its growth forecast for global goods trade this year. Steve

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<v Speaker 10>Rappaport Bloomberg Radio.

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<v Speaker 1>US Secretary of State Anthony Blincoln has urged China to

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<v Speaker 1>use its influence in the Israel Hamas conflict. Bloomberg's Joan

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<v Speaker 1>Wong has the story from Hong Kong.

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<v Speaker 11>The US State Department says Blincoln had a long conversation

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<v Speaker 11>with Foreign Minister Wanghi before departing from Riat. The Jew

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<v Speaker 11>spoke for about an hour. It was their first call

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<v Speaker 11>since the Hamas attacks on Israel a week ago. B

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<v Speaker 11>Lincoln urged Beijing to help prevent other state or non

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<v Speaker 11>state actors from attacking Israel and widening the war. The

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<v Speaker 11>US has been particularly concerned about Hesbala, the Irun back

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<v Speaker 11>to militia group in Lebanon. The administration is worried about

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<v Speaker 11>an additional front being opened on Israel's northern border. In

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<v Speaker 11>Hong Kong, join Wang Bloomberg Radio.

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<v Speaker 2>We go to China next to where the Central Bank

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<v Speaker 2>is saying now that the domestic economy and the property

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<v Speaker 2>market are showing signs of improvement. We have more from

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<v Speaker 2>Bloomberg's boniau In.

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<v Speaker 12>Central Bank chief Pangong Shuang said indicators including industrial production

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<v Speaker 12>and services showed positive trends in the economy. He spoke

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<v Speaker 12>at the IMF meetings in Morocco. Pen also said China's

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<v Speaker 12>local government debt risk is structural and generally manageable.

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<v Speaker 5>He said.

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<v Speaker 12>China with step up efforts to attract foreign investment and

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<v Speaker 12>stabilized trade, but he was not specific about the details.

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<v Speaker 12>Penn said China would seek more sustainable growth while maintaining

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<v Speaker 12>what he called a reasonable pace of expansion in Hong Kong.

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<v Speaker 12>I'm Bonnie ol Bloomberg Radio.

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<v Speaker 1>Back in the United States. Wall Street will have plenty

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<v Speaker 1>to contend with this week, not only the geopolitics you've

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<v Speaker 1>been talking about, but also a flood of earnings reports coming.

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<v Speaker 1>We get more from Bloomberg's Charlie Pellett.

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<v Speaker 8>Among the financials this week Goldman Sachs, Morgan Stanley, Bank

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<v Speaker 8>of America, Blackstone, Bank of New York, Mellon, American Express,

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<v Speaker 8>and Charles Schwab. We'll also hear from a broad range

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<v Speaker 8>of S and P companies. Sarah Malik is chief investment

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<v Speaker 8>officer at Neuvene.

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<v Speaker 13>Coming into earning seasons, we've seen cutstick and census. I

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<v Speaker 13>think there's upside companies can eat and raise. Also, margins

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<v Speaker 13>are expected to be down, and we're coming off three

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<v Speaker 13>quarters of our earnings are session of negative negative earnings growth.

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<v Speaker 8>Also this week at and T, Johnson and Johnson, Lockheed Martin, Netflix,

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<v Speaker 8>and Tesla, among many others. In New York, Charlie Bloomberg Radio,

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<v Speaker 8>all Right, the time here.

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<v Speaker 1>Is about ten minutes past the hour, and we are

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<v Speaker 1>looking at some of the top stories here with our

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<v Speaker 1>guest Benjamin Antony, co founder and CEO of the Murriam Institute,

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<v Speaker 1>to talk a little bit more about the Israel Hamas war.

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<v Speaker 1>Paul Allen from Sydney joins this for the conversation as well. Benjamin,

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<v Speaker 1>thanks very much. I guess pressing here at the moment

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<v Speaker 1>is these more than half a million gozens that have

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<v Speaker 1>moved to the south of Goze, and yet at the

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<v Speaker 1>same time we don't know yet whether or not the

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<v Speaker 1>border with Egypt will be opened for supplies, so that

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<v Speaker 1>could develop into a humanitarian crisis. So how urgent is

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<v Speaker 1>that and can you flesh out some of the some

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<v Speaker 1>of the behind the scenes actions on that.

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<v Speaker 5>Yes, absolutely, and thank you for having me. The situation

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<v Speaker 5>with the Gazans who are moving southward is the result

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<v Speaker 5>of the IDF's efforts to reduce to its lowest number

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<v Speaker 5>the civilian casualties that will be caught in the crossfire

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<v Speaker 5>in the event of a ground incursion. Now it's important

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<v Speaker 5>to emphasize the ground incursion has not yet taken place.

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<v Speaker 5>We are beyond a week since the attack last Saturday

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<v Speaker 5>upon the civilians of the States of Israel that resulted

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<v Speaker 5>in thirteen hundred members of our society here being massacred

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<v Speaker 5>in the most horrendous and horrific manner, and more than

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<v Speaker 5>one hundred and fifty being taken as hostages. Still being held,

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<v Speaker 5>including our elderly, are infirm, our women, our children, even

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<v Speaker 5>and born children. It's reported to be the case. And

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<v Speaker 5>as a consequence of that, the IDF seeks to now

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<v Speaker 5>clear out northern Gaza of Hamas fighters with a view

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<v Speaker 5>stated view to toppling the Haramas military regime. With that

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<v Speaker 5>in mind, they have called repeatedly and at length for

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<v Speaker 5>Ghazans to move by where the humanitarian corridor signed by

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<v Speaker 5>the Israel Defense Forces down to the south toward the

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<v Speaker 5>Rafia crossing, and they have also called upon the Egyptians

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<v Speaker 5>to open the border if the need arises. Now, with

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<v Speaker 5>that having been said, there is a movement of people

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<v Speaker 5>down toward the south. That is a positive development. Israel

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<v Speaker 5>has turned on the water supply and gas supply in

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<v Speaker 5>southern Gaza as a result of the influx of those

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<v Speaker 5>individuals and of those people. But it's very possible that

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<v Speaker 5>Hamas is cynically holding others and it seems to be

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<v Speaker 5>the case in northern Gaza with a view to causing

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<v Speaker 5>deliberately civilian casualties in the event of what seems to

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<v Speaker 5>be an inevitable ground incursion. But there are still many

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<v Speaker 5>questions to be asked about that.

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<v Speaker 14>We have been hearing some pretty hot greater it come

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<v Speaker 14>from Israeli Prime Minister Benia Bendit in terms of wiping Hamas.

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<v Speaker 8>Off the maps.

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<v Speaker 14>So what does Gaza look like at the end of

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<v Speaker 14>this conflict? And there is there a risk for Israel

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<v Speaker 14>here in terms of the scale of its retaliation.

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<v Speaker 5>I think that there's always a risk. War is one

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<v Speaker 5>of those things that one only gets a retaliation upon contact,

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<v Speaker 5>right and everybody has a very clear strategy until there

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<v Speaker 5>is engagement with the enemy. The reality of the matter

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<v Speaker 5>is that for years right who, despite the FIY rhetoric,

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<v Speaker 5>has decided upon a cautious approach towards toppling fighting countering

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<v Speaker 5>Hamas operatives inside the Gaza strip. I don't refer to

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<v Speaker 5>the toppling of the Ramas movement because obviously that was

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<v Speaker 5>not achieved, but the targeted killings of leaders of Kamas,

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<v Speaker 5>that's something that net has been very measured with in

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<v Speaker 5>the past. Now, what's interesting about this is he's formed

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<v Speaker 5>a war cabinet which includes members of the opposition, including

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<v Speaker 5>former Defense Minister in chief of Staff Benny Gantz, and

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<v Speaker 5>another former Chief of Staff of the Israel Defense Force

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<v Speaker 5>is Gaddy Eisenkott. Now, fascinatingly, all three of these individuals

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<v Speaker 5>have worked before with regard to the Gaza Front, and

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<v Speaker 5>on all occasions they have adopted a cautious, measured approach.

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<v Speaker 5>So to move from that approach to an approach that

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<v Speaker 5>would match the rhetoric you mentioned of Prime Minister Netanyahu,

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<v Speaker 5>which alludes to the toppling of Karmas, that's going to

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<v Speaker 5>take a dramatic shift in mindset and strategy. We'll wait

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<v Speaker 5>and see whether that occurs. One interesting aspect at play

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<v Speaker 5>there is a new individual, the Defence Minister Joa Gallant,

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<v Speaker 5>a true combat fighter of the Israel Defense Forces, formerly

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<v Speaker 5>the head of our Naval Commando unit in Israeli Navy,

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<v Speaker 5>and he may be able to pound his fist with

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<v Speaker 5>sufficient vigor to move towards a decisive outcome against Kramas.

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<v Speaker 1>Benjamin Israel has said repeatedly it doesn't want occupy guys,

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<v Speaker 1>and I think many people would believe that. But even

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<v Speaker 1>if victory is declared over Hamas, how can Israel be

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<v Speaker 1>sure that another group just doesn't pop up. In fact,

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<v Speaker 1>even in the West Bank, Fatah and a lot of

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<v Speaker 1>supporters there have been saying that they would back Hamas,

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<v Speaker 1>So it seems like just getting rid of Hamas, even

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<v Speaker 1>if that happens, that's not enough.

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<v Speaker 5>I think you're absolutely right. Israel in the past has

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<v Speaker 5>been saying that it does not want to retake the

0:12:34.200 --> 0:12:36.240
<v Speaker 5>Gaza Strip, it does not want to remain inside the

0:12:36.240 --> 0:12:39.040
<v Speaker 5>Gaza Strip. But of course that was prior to the

0:12:39.080 --> 0:12:42.679
<v Speaker 5>events that took place on Saturday morning, October the seventh.

0:12:43.120 --> 0:12:47.000
<v Speaker 5>Those events have shaken is Ready to society to its core.

0:12:47.280 --> 0:12:50.040
<v Speaker 5>It has brought about very real questions that I surely

0:12:50.120 --> 0:12:53.240
<v Speaker 5>will be asked of our entire defense establishment and our

0:12:53.320 --> 0:12:56.560
<v Speaker 5>leadership going all the way up to Prime Minister Netta Yahu.

0:12:56.880 --> 0:13:00.480
<v Speaker 5>Now's not the time to delve into those recruitments. Nations

0:13:00.480 --> 0:13:04.520
<v Speaker 5>that surely await, but the mindset has shifted. The mindset

0:13:04.559 --> 0:13:07.280
<v Speaker 5>is that this is a presence there ramas in the

0:13:07.280 --> 0:13:10.880
<v Speaker 5>Gaza Strip that cannot be permitted to re arm. Now

0:13:10.960 --> 0:13:14.120
<v Speaker 5>how that might turn out, Well, it could be anything

0:13:14.240 --> 0:13:18.280
<v Speaker 5>from a full military reoccupation of the Gaza Strip. That's

0:13:18.320 --> 0:13:21.080
<v Speaker 5>something that certainly is being talked about, but it's not

0:13:21.200 --> 0:13:24.600
<v Speaker 5>something that's met with a very enthusiastic appetite for reasons

0:13:24.600 --> 0:13:28.120
<v Speaker 5>that you well understand. And we could see some sort

0:13:28.120 --> 0:13:31.760
<v Speaker 5>of arrangement whereby the Israelis move in, the IDF moves in,

0:13:32.040 --> 0:13:36.360
<v Speaker 5>disarms tramas and then holds strategic areas to prevent the

0:13:36.400 --> 0:13:39.920
<v Speaker 5>rearming of camas, such as the Rafah crossing, the Rafa

0:13:40.000 --> 0:13:42.920
<v Speaker 5>crossing down there alongside. That's possible.

0:13:44.280 --> 0:13:48.080
<v Speaker 14>Just to quickly, Benjamin, we have a unity government, a

0:13:48.200 --> 0:13:51.480
<v Speaker 14>unity war cabinet in Israel at the moment. How long

0:13:51.520 --> 0:13:52.240
<v Speaker 14>can that survive?

0:13:54.800 --> 0:13:57.480
<v Speaker 5>Well, that's a very interesting question. I don't think that

0:13:57.480 --> 0:14:00.120
<v Speaker 5>that will survive for very long at all. If I

0:14:00.120 --> 0:14:02.400
<v Speaker 5>can be frank about it, I think that you're going

0:14:02.440 --> 0:14:05.480
<v Speaker 5>to see Prime Minister Netan Yahoo and the Chief of

0:14:05.559 --> 0:14:09.640
<v Speaker 5>Staff and the upper echelons of the entire security establishment,

0:14:09.679 --> 0:14:15.120
<v Speaker 5>perhaps fight and fight with regard to combating Hamas as

0:14:15.160 --> 0:14:19.440
<v Speaker 5>though this is indeed their last fight atop the leadership

0:14:19.560 --> 0:14:22.880
<v Speaker 5>of Israel, because quite frankly, I believe it is. When

0:14:22.920 --> 0:14:25.200
<v Speaker 5>you ask me how long the unity government will last,

0:14:25.600 --> 0:14:29.880
<v Speaker 5>I would imagine until the recrimination, the inevitable recrimination starts

0:14:29.880 --> 0:14:33.640
<v Speaker 5>here in Israel and people start moving to have neta

0:14:33.720 --> 0:14:34.680
<v Speaker 5>Yahoo move aside.

0:14:37.320 --> 0:14:40.160
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