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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg

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Speaker 1: Debacurate podcast, available every morning on Apple, Spotify or wherever

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Speaker 1: you listen. It's Tuesday, the twenty fourth of September. Here

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Speaker 1: in London. I'm Caroline Hepkip. Coming up today. Israeli air

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Speaker 1: strikes on Lebanon kill hundreds of people in the deadliest

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Speaker 1: day of fighting in nearly two decades. China's Central Bank

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Speaker 1: throws the kitchen sink at the economy in a bid

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Speaker 1: to hit their annual growth target. Plus talk of light

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Speaker 1: at the end of the tunnel, kits Darma tries to

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Speaker 1: reset the narrative with his party conference speech. After a

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Speaker 1: bruising few weeks in power, Let's start with a roundup

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Speaker 1: of our top stories. Nearly five hundred people have been

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Speaker 1: killed after Israel launched air strikes on targets across southern Lebanon.

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Speaker 1: The strikes are a major escalation, just days after an

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Speaker 1: attack in which pages and walkie talkies owned by HESBEL

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Speaker 1: and members exploded across the country. In a video message,

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Speaker 1: Israel's Prime Minister Benjamin Netanyahu told the people of Lebanon

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Speaker 1: that his country's war is not with them.

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Speaker 2: But with Hesbelah, the idea has warned you to get

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Speaker 2: out of harm's way. I urge you take this warning seriously.

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Speaker 3: Don't let his balain danger your lives and the lives

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Speaker 3: of your loved ones.

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Speaker 4: Don't let his balain danger Lebanon.

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Speaker 1: Despite Netanyahu's message, the Lebanese Health Ministry said around one

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Speaker 1: hundred women and children were among the dead. Israel says

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Speaker 1: many of those killed were members of Hesbelah and argue

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Speaker 1: that the group has placed rocket launchers in private homes.

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Speaker 1: The strikes were the deadliest since the two thousand and

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Speaker 1: six war between the two sides, and comes as the

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Speaker 1: US said that it will send a small number of

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Speaker 1: additional troops to the Middle East. China has unleashed an

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Speaker 1: unprecedented stimulus drive in a bid to its annual growth

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Speaker 1: goal of five percent. The Central Bank cut the amount

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Speaker 1: that lenders must hold in reserves to the lowest level

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Speaker 1: since twenty twenty and reduced a key policy rate. A

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Speaker 1: package to shore up the Chinese property market was also unveiled,

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Speaker 1: including lowering boring costs on as much as five point

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Speaker 1: three trillion dollars in mortgages and easing rules on second

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Speaker 1: home purchases. Grace Tam, chief investment advisor at BNP Paribao

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Speaker 1: Wealth Management, Hong Kong, says further support is expected.

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Speaker 3: What happened today, I think it actually rates are the

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Speaker 3: expectations of more coming, especially for today. It's more on

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Speaker 3: the monetary side, and I think market would expect there

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Speaker 3: will be more announcement on.

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Speaker 1: The fiscal side. BNP Paribas Grace Tam speaking there. The

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Speaker 1: People's Bank of China chief Pangong Sheng also said that

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Speaker 1: China will unlock at least eight hundred billion Yu one

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Speaker 1: or one hundred and third thirteen billion dollars of liquidity support,

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Speaker 1: allowing securities firms, funds, and brokers to buy stocks to

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Speaker 1: the US. Now, Federal Reserve officials they're leaving the door

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Speaker 1: open to additional large rate cuts after last week's outsized

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Speaker 1: half point reduction. Policymakers speaking at multiple events stress that

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Speaker 1: they're undecided on what they will do at the next

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Speaker 1: FED policy meeting, and incoming data will guide their decisions. However,

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Speaker 1: the Chicago Fed President Austin Goulesby did say that rates

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Speaker 1: need to be loaded significantly to protect the US labor

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Speaker 1: market and support the US economy.

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Speaker 5: If conditions continue like this, there are a lot of

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Speaker 5: cuts to come over the next twelve months. There's virtual

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Speaker 5: unanimity about that. So whether the next one is twenty

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Speaker 5: five or fifty or zero or whatever, my view is,

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Speaker 5: over the next twelve months, we have a long way

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Speaker 5: to come down to get the interest rate to something

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Speaker 5: like neutral, to try to hold the conditions where they

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Speaker 5: are well.

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Speaker 1: Goolesby isn't a regular voter on rate decisions. This year,

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Speaker 1: he participates in monetary policy deliberations. Gilesby said that he

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Speaker 1: supported the Fed's decision last week to lower rates by

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Speaker 1: a half percentage point. That's a message that was echoed

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Speaker 1: in separate comments by the Minneapolis Fed president Near Kashkari

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Speaker 1: and also by Atlanta's Raphael Bostick. It's emerged that Berkley's

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Speaker 1: and Bank of America helped UniCredit build its stake in

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Speaker 1: commertz Bank. Bloomberg understands that Barkley's arranged derivatives linked to

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Speaker 1: commerts Bank for the Italian lender, and alongside Bank of America,

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Speaker 1: helped the firm to expand its holding to the current

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Speaker 1: level of about twenty one percent. UniCredit CEO Andrea Orchell

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Speaker 1: also used a government placement to acquire a four and

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Speaker 1: a half percent stake, a move that the German government

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Speaker 1: disapproved of. Berlin announced on Friday that it is suspending

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Speaker 1: comments bank share sales until further notice. London has been

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Speaker 1: struggling with the dearth of IPOs and locally listed companies

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Speaker 1: leaving for New York recently, but a new survey by

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Speaker 1: broker Deutsche new Miss shows some reasons to be optimistic.

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Speaker 1: New Miss surveyed one hundred and fifty executives and directors

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Speaker 1: at London listed companies. Eighty seven percent said that the

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Speaker 1: UK is an attractive market now to list or raised capital.

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Speaker 1: Forty two percent said that they expect IPOs to increase

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Speaker 1: dramatically in the next couple of years, especially from foreign

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Speaker 1: issuers listing in London. Respondents said that the government should

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Speaker 1: now prioritize streamlining corporate governance requirements and encouraging pension funds

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Speaker 1: to invest in local stocks. Speaking of the UK, Kirstarma

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Speaker 1: will attempt to reset the tree's political narrative as he

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Speaker 1: addresses his Labor Party conference today. The Prime Minister is

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Speaker 1: expected to say that taking tough economic decisions now will

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Speaker 1: allow the government to deliver its key objectives. Chancellor Rachel

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Speaker 1: Reeves also conveyed an upbeat message about Breton's growth prospects

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Speaker 1: in her remarks at the event in Liverpool yesterday.

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Speaker 2: It will be a budget with real ambition, our budget

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Speaker 2: to fix the foundations, our budget to deliver the change

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Speaker 2: that we promise, our budget to rebuild Britain, and my

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Speaker 2: budget will keep our manifesto commitments. Every choice we make

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Speaker 2: will be within a framework of economic and.

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Speaker 1: Discal stability, Rachel Reeves, speaking there. Keir Starmer's speech comes

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Speaker 1: amidst criticism that his administration's gloomy economic messaging has exacerbated

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Speaker 1: the UK's financial challenges. According to a survey by S

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Speaker 1: and P, global corporate leaders are still awaiting detail on

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Speaker 1: economic policy, particularly the budget, with some putting off investments

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Speaker 1: in the meantime. Want to get back to our top story.

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Speaker 1: This morning, Israel has launched air strikes on targets across

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Speaker 1: southern Lebanon. Nearly five hundred people have been killed and

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Speaker 1: some one thousand, six hundred and fifty injured. This according

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Speaker 1: to the figures from the Lebanese Health Ministry. It is

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Speaker 1: one of the deadliest days of fighting in nearly two decades,

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Speaker 1: and it increases the fears of an all out war

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Speaker 1: in the Middle East. Joining me now in the radio

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Speaker 1: studios Bloomberg's Horizons Middle East anchor Jumana Bassecci, Good morning, Jamana,

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Speaker 1: thank you for being with me. We had seen strikes

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Speaker 1: focused around the border area that the border between Israel

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Speaker 1: and Lebanon. This is a dramatic escalation between Israel and

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Speaker 1: Hezbolah what has been happening.

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Speaker 6: Yeah, that's right. So as you said, it was the

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Speaker 6: deadliest a day in Lebanon, not just since October seven,

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Speaker 6: but since the two thousand and six Lebanon Israel war

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Speaker 6: that lasted over a month. Over the course of the

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Speaker 6: day yesterday, Israel launched at several attacks across targets in

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Speaker 6: southern Lebanon the eastern Bika Valley. Typically these are areas

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Speaker 6: where Hezbala have military infrastructure. Now, by the end of

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Speaker 6: the day, the Lebanese Health Ministry said that nearly five

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Speaker 6: hundred people had been killed, including fifty eight women and

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Speaker 6: thirty five children. One thousand, six hundred and fifty people

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Speaker 6: had been wounded. The Israeli military say that they had

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Speaker 6: hit one thousand three hundred Hesbala targets across the country,

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Speaker 6: and that many of the people killed were actually members

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Speaker 6: of the Lebanese militia Hezbala, because the group had placed

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Speaker 6: rocket launchers into people's private homes. This is per the

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Speaker 6: Israeli military now. Earlier in the day, the IDEF had

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Speaker 6: left messages to Lebanese citizens warning them to leave their

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Speaker 6: homes and to take the warning seriously. But many Lebanese

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Speaker 6: people didn't know where to go. This is not a

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Speaker 6: country that has bomb shelters, and so a lot of

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Speaker 6: panic and chaos ensued. There were traffic jams hours long

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Speaker 6: from the southern part of the country all the way

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Speaker 6: back up to Beiru, panic and fear prevailing. In return,

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Speaker 6: the Hesbalah throughout the day says it carried out another

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Speaker 6: missile attack on some targets in north of Haifa in Israel,

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Speaker 6: according to its telegram account, saying that they attacked the

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Speaker 6: Rama David airbase, but of course many of those rockets

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Speaker 6: were intercepted. The point is yesterday was an extremely deadly

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Speaker 6: day and it doesn't appear that there are any signs

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Speaker 6: of letting up on either side at this front.

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Speaker 1: This is an aerial campaign against Hezbolon and Hesbolo against

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Speaker 1: as you say, parts of Israel. Is a ground invasion imminent.

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Speaker 6: That's one of the big questions that people are asking.

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Speaker 6: But if you speak to some experts on the ground,

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Speaker 6: they tell you that there are no indications as of

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Speaker 6: yet that Israel is preparing itself for an actual ground offensive.

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Speaker 6: As so far they have limited the conduct of the

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Speaker 6: war to air strikes, but there are no signs of

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Speaker 6: reserves being called up. And even though there have been

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Speaker 6: some redeployments to the North part of Israel, so far

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Speaker 6: they're acting in a defense capacity for now. If you

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Speaker 6: listen to the language coming out of the Israeli Prime Minister,

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Speaker 6: out of the Defense Minister, you have gallant. It appears

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Speaker 6: as though the air strikes on key Hesbala assets are

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Speaker 6: going to continue. And then also what they have said,

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Speaker 6: and again this is language from the Israeli military put

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Speaker 6: forward yesterday, They said that up to fifty percent of

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Speaker 6: Hesbala's capabilities and infrastructure has been degraded. In addition to that,

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Speaker 6: they also claim that all of the elite commanders of

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Speaker 6: the Red one fighting Force, those are the senior commanders

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Speaker 6: that surround the Secretary Channel Hassan Asela have also been

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Speaker 6: killed as well. This is not being confirmed by Hesbalah.

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Speaker 1: Why is this escalation happening now, do you think?

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Speaker 6: I think again. You have to go back to the

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Speaker 6: language that the Israeli officials have used in the last

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Speaker 6: few weeks. And clearly, if you listen to what the

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Speaker 6: Defense minister said, you have gallant. They see the center

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Speaker 6: of gravity of the war as having moved to the north.

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Speaker 6: The Israeli Prime Minister Benjamin Natagne, who on the day

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Speaker 6: of those explosion explodes SIF attacks that the telecommunications devices

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Speaker 6: blowing up last Tuesday was only a week ago. That

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Speaker 6: same day, he announced a new war objective, and the

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Speaker 6: war objective was to allow residents in northern Israel to

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Speaker 6: return homes. And remember there are over sixty seventy thousand

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Speaker 6: families that have left the northern border since October seven,

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Speaker 6: and since that daily exchange of rocket fire between Hesbalah

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Speaker 6: and Israel, and a similar situation in southern Lebanon as well,

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Speaker 6: you have more than one hundred and two hundred and

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Speaker 6: thirty thousand families also being forced to evacuate. So there

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Speaker 6: is a vacuum on both sides of the border. And

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Speaker 6: what some people are saying, and again this is an

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Speaker 6: expert view, is that what Israel looking to do here

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Speaker 6: is to escalate once more in order to de escalate

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Speaker 6: and to get Hesbella to come round to agreeing to

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Speaker 6: put down their arms and to stop the exchange and

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Speaker 6: the firing of rockets into northern Israel.

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Speaker 1: This also comes with the backdrop of the UN General

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Speaker 1: Assembly which begins today in New York. Iran's new president

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Speaker 1: will be there, also the Israeli delegation and the outgoing

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Speaker 1: US president, so this could also be a very important moment.

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Speaker 6: It could have been a big opportunity. It would just

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Speaker 6: point out the Lebanese Prime Minister Council Tis trips, so

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Speaker 6: he's no longer going. The Israeli Prime Minister Nottanaho is

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Speaker 6: still expected to make a trip towards the end.

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Speaker 1: Of the week.

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Speaker 6: He's expected to give a speech either Thursday or Friday.

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Speaker 6: It has not been confirmed given everything that has been

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Speaker 6: going on, but this was meant to be a longer

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Speaker 6: trip for him. He obviously cut it short or made

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Speaker 6: it shorter. The US, meanwhile, is still very much focused

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Speaker 6: on breaking this escalatory cycle. Their urging restraints for all

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Speaker 6: parties involved, and you did mention the Iranian President Pasesh

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Speaker 6: Khan as well, and he made some interesting comments yesterday

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Speaker 6: that have been picked up also on our Bloomberg criminal

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Speaker 6: In comments to reporters, he said that Iran would be

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Speaker 6: willing to have a discussion with Israel and they're willing

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Speaker 6: to put all our weapons aside so long as Israel

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Speaker 6: is willing to do the same. This is a verbatim

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Speaker 6: quote that the Iranian president told reporters yesterday, and lots

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Speaker 6: of people were questioning the timing of those specific comments,

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Speaker 6: particularly because as we know, Hesbela is Iran backed, and

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Speaker 6: there has been an absence or very little sign very

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Speaker 6: few signs that Iran are looking to get actively involved

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Speaker 6: in this war as well. So you have to think

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Speaker 6: about some of the commentary that's going to be coming

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Speaker 6: through from Iran and Iranian representatives in the next few

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Speaker 6: days as well.

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Speaker 1: Yeah, Masud Pozshki on the Iranian president is due to

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Speaker 1: speak at the UN today. Jumana, thank you so much

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Speaker 1: for being with me this morning. That is Bloomberg Horizons

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Speaker 1: Midle East anchor Jumana Bisecci in one of our key

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Speaker 1: stories this morning, Israel launching air strikes on targets across

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Speaker 1: southern Lebanon. Thank you so much for being with me.

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Speaker 1: Now to the main economic and business story. Now, China's

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Speaker 1: Central Bank has announced a slew of stimulus measures to

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Speaker 1: boost the economy, stocks, and property. The initial market response

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Speaker 1: has been cautiously positive, perhaps more than that, but some

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Speaker 1: of the fundamental woes that continue to plague the Chinese economy,

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Speaker 1: like deflationary pressure, those perhaps remain unresolved. Let's discuss with

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Speaker 1: Blueberg's Asia Government and Politics correspondent Rebecca Chung Wilkins. Rebecca,

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Speaker 1: good morning. First of all the changes that have been announced,

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Speaker 1: just run through the pboc's barrage of measures.

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Speaker 7: Yeah, both the timing and the scale. I think of

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Speaker 7: these measures something of a surprise and perhaps underscoring the

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Speaker 7: urgency with which authorities are seeking now to act. So

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Speaker 7: we had the seven day reverse repo rate that was

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Speaker 7: lowered twenty BIPs. We had the triple R down fifty BIPs,

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Speaker 7: we had average cut on mortgages existing mortgages down fifty bits,

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Speaker 7: and the MLF expected to be cut by about thirty BIPs. So,

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Speaker 7: as you, as you say, sort of barrage of different measures,

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Speaker 7: that we've had. We've also had mention of this potential

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Speaker 7: program to allow PBOC liquidity to support the stocks that

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Speaker 7: could look similar to something that we saw in twenty fifteen.

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Speaker 7: And interestingly, on property, while there wasn't an enormous amount,

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Speaker 7: we did hear this shift that the PBOC will now

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Speaker 7: be covering one hundred percent of loans for the program

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Speaker 7: that local governments are engaged in to buy up the

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Speaker 7: slew of unsold housing. Now, this is a scheme that

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Speaker 7: has really struggled to take off. So a real range

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Speaker 7: here and as sit down by you know, three of

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Speaker 7: the key regulatory financial chiefs in China.

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Speaker 1: Yeah, Beijing was making a big deal of this announcement

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Speaker 1: ahead of it. Why is that also quite important in

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Speaker 1: how we think about this story.

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Speaker 7: Yeah, this is really interesting because I think for most

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Speaker 7: parts of the world, this is what you expect, expect

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Speaker 7: your chief, your PBOC chief, your central bank chief to

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Speaker 7: sit down at a press conference and talk sort of

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Speaker 7: somewhat off the cuff or somewhat freely with transparency around

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Speaker 7: what measures are being introduced. But of course in China,

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Speaker 7: actually there has been this sort of prevailing concern around

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Speaker 7: the black box, around the lack of information and the

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Speaker 7: lack of transparency around how decision making is happening. So

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Speaker 7: it certainly has caught people's attention. We had the Pangong

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Speaker 7: Shung sitting alongside the chief for the Securities Regulator as

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Speaker 7: well as the Finance regulator. So these three making their

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Speaker 7: debut and offering a coordinated set of measures from each

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Speaker 7: of their respective institutions here to try and bolster growth

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Speaker 7: in China.

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Speaker 1: Yeah, indeed, and so in terms of that growth goal,

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Speaker 1: Bloomberg Economics has looked at how much this will help

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Speaker 1: does China reach its five percent growth target on the

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Speaker 1: back of this.

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Speaker 7: Well, this is interesting. Bloomberg Economics yea certainly commenting that

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Speaker 7: this is a powerful, a powerful measure. That their baseline

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Speaker 7: was four point seven but with these measures at the

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Speaker 7: very least, there will be a certainly a significant sentiment shift.

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Speaker 7: But also that China could now set its sights for

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Speaker 7: that target of around five percent. And it is worth

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Speaker 7: stressing that the target even in Beijing's mind is around

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Speaker 7: five percent rather than a hard five percent.

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Speaker 1: Okay, And this talk also of stock stabilization, a stock

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Speaker 1: stabilization fund, I mean no surprise that that has boosted

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Speaker 1: the equity market. Surely what's been the reaction?

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Speaker 7: Yes, not entirely surprising, and I think in that part

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Speaker 7: we have perhaps more than just cautious optimism, I think,

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Speaker 7: but I would sort of caveat it was saying that

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Speaker 7: the expectations from investors have been so low. They have

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Speaker 7: been this whole sort of process of sort of getting

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Speaker 7: their hopes up and then having them dashed. We've been

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Speaker 7: in this sort of cycle of up and down and

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Speaker 7: up and down for really almost a year in fact,

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Speaker 7: a looking back, and so yes, there is a great

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Speaker 7: deal of I think of positivity around that. Of course,

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Speaker 7: we're still waiting to see what some of the details

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Speaker 7: might look like. We had a similar program that was

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Speaker 7: introduced back in in twenty fifteen to try and stabilize

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Speaker 7: the markets there. So there are some precedents for investors

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Speaker 7: to look at here too.

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