Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning, I'm Nathan Hager.
Speaker 1: And I'm Karen Moscow. Here are the stories we're following today.
Speaker 2: Karen, we begin this morning with the latest developments out
Speaker 2: of the Middle East. Israeli Prime Minister Benjamin NETANYAHUO has
Speaker 2: held a series of meetings planning the next attack on Iran.
Speaker 2: That's after a Hesbala drone exploded next to his private home.
Speaker 2: We get more from Bloomberg's Patrick Sykes in the Middle East.
Speaker 3: The timeline to be clear, I think is still unclear,
Speaker 3: but that series of meetings over the weekend does suggest
Speaker 3: that it's firmly back on the agenda in the security circles.
Speaker 3: There were some leaks over the weekend from the US
Speaker 3: side suggesting that drones would be involved. That would tally
Speaker 3: with the last sort of back and forth earlier this
Speaker 3: year in April, when Israel's thought to have used drones
Speaker 3: to target Iranian radar facility. And then the only other
Speaker 3: lineup over the weekend was the Iranian Foreign minister calling
Speaker 3: any potential attack from Israel against her on a red
Speaker 3: line and promising to reply in kind. So both sides
Speaker 3: keeping up the rhetoric, but it does remain to be
Speaker 3: seen so when exactly it will take place?
Speaker 2: Bloomberg's Patrick Sike says Israel's killing of Hamas leader yach
Speaker 2: Ya sin War was viewed by many as a potential
Speaker 2: turning point, but in the days since combat has intensified,
Speaker 2: with Hesbala and.
Speaker 1: Hamas now to the latest in the presidential race, Nathan.
Speaker 1: With fifteen days until the election, former President Donald Trump
Speaker 1: held a town hall in Lancaster, Pennsylvania. He addressed a
Speaker 1: new line of attack from a Vice president Kamala Harris
Speaker 1: that he's getting tired on the campaign trail.
Speaker 4: I've done cognitive tests.
Speaker 5: I've done him twice and I aced both of them,
Speaker 5: and the doctor in one case said I've never seen
Speaker 5: anybody asom They've never seen anybody.
Speaker 6: As but I'd like to see cognitive.
Speaker 5: Tests for anybody running for president or vice president.
Speaker 1: Later today, Trump will hold a rally in Greenville, North Carolina,
Speaker 1: after heavily criticizing the Biden administration's response to Hurricane Helene.
Speaker 1: He has a series of splashy media events planned in
Speaker 1: the campaign's final days, including a rally at Madison Square
Speaker 1: Garden this Sunday.
Speaker 2: Well Meanwhile, Karen Vice President Harris, visited a black church
Speaker 2: in Stonecrest, Georgia on Sunday and gave an interview to
Speaker 2: the Reverend Al Sharpton on MSNBC. She was asked about
Speaker 2: the former president's quote street talk on the campaign and
Speaker 2: use of vulgar language to describe her record as vice president.
Speaker 7: The President of the United States must set a standard
Speaker 7: not only for our nation, but understanding the standard that
Speaker 7: we as a nation must set for the world.
Speaker 2: Kamala Harris predicted Trump's lack of decorum would be a
Speaker 2: disqualifier with voters. New federal campaign finance filings show the
Speaker 2: Harris campaign raised two hundred and twenty one point eight
Speaker 2: million dollars in September. That's more than three times the
Speaker 2: sixty two point seven million raised by the Trump campaign.
Speaker 2: The latest Real Clear Politics average of national polls shows
Speaker 2: the race still neck and neck, with Harris leading Trump
Speaker 2: by just nine tenths of one percent.
Speaker 1: Let me turn to the markets now, Nathan and Wall
Speaker 1: Street gets back to work with stocks in record territory.
Speaker 1: In fact, the S and P five hundred is coming
Speaker 1: off it's forty seventh record close of the year. Kamal Batia,
Speaker 1: president and CEO of Principal Asset Management.
Speaker 8: Look, I think the markets have very powerful momentum right now,
Speaker 8: not just here but also other parts of the world.
Speaker 8: So I do think the market conditions are perfect for
Speaker 8: equities to do well here, although the valuations are getting rich.
Speaker 1: Principal Asset Managements Kamal Batia notes the S and P
Speaker 1: five hundred has risen for six straight weeks.
Speaker 2: And well, that's raised concerns over valuations. Karen Muddy Waters
Speaker 2: Capital founder Carson Block says most investors would now do
Speaker 2: better to just buy the biggest US stocks.
Speaker 4: There's a FED put.
Speaker 7: There's always a FED put, you know. Does there come
Speaker 7: a point in time when the system breaks and the
Speaker 7: FED can't fix it? Theoretically yes, in our lifetimes.
Speaker 4: I don't know.
Speaker 7: So I think for now it probably pays not the
Speaker 7: thing too much, just close your eyes and buy, you know,
Speaker 7: probably mag seven.
Speaker 2: Muddy Waters Capital founder Carson Block also tells Bloomberg the
Speaker 2: China stock market is uninvestable.
Speaker 1: Well, Nathan. The parade of earnings continues, with the number
Speaker 1: of high profile companies reporting this week, including several Down members.
Speaker 1: We get a preview with Bloomberg's Charlie Pellett.
Speaker 9: We'll be getting earnings reports this week from AT and T, Boeing,
Speaker 9: and Coca Cola. It questions about whether the outlook for
Speaker 9: corporate profits justifies current valuations. Quincy Crosby is chief Global
Speaker 9: strategist at LPL Financial.
Speaker 10: This is a market that really is discerning and will
Speaker 10: punish any slight, any slight hint in the guidance that
Speaker 10: doesn't meet ultimately the valuations.
Speaker 9: Also reporting this week ge Tesla, American Airlines and Southwest Airlines.
Speaker 9: We'll also hear from UPS and Norfolk Southern in New York.
Speaker 9: Charlie Pellett, Bloomberg Radio.
Speaker 2: All right, Charlie, thank you. The S and P five
Speaker 2: hundred decade of big gains is about to come to
Speaker 2: an end. That is, according to strategists at Goldman Sacks.
Speaker 2: They say US stocks are unlikely to sustain their above
Speaker 2: average performance as investors turned to other assets, including bonds,
Speaker 2: for better returns. Goldman predicts the SMP will post an
Speaker 2: annualized nominal total return of just three percent over the
Speaker 2: next ten years. That compares with thirteen percent in the
Speaker 2: last decade and a long term average of eleven percent.
Speaker 1: Well Nathan and company news shares it boeing up almost
Speaker 1: four percent this morning. The Planemaker and the union representing
Speaker 1: thirty three thousand striking members hammered out a tentative new
Speaker 1: accord that not just a pay by thirty five percent
Speaker 1: over four years, but the hourly workers had the final
Speaker 1: say with their vote on Wednesday, and approval is far
Speaker 1: from certain. They overwhelmingly rejected a deal in September.
Speaker 2: Look for a jump in Treasury yields, Skaren. That's the
Speaker 2: call out a t ROW price. The firm says the
Speaker 2: tenure Treasury will test the five percent threshold in the
Speaker 2: next six months off the back of rising inflation, next
Speaker 2: PIT dictations, and concerns over US fiscal spending. The call
Speaker 2: stands out against market expectations of lower yields after the
Speaker 2: Fed cut rates for the first time in four years
Speaker 2: last month.
Speaker 1: Unnice time offert look at some of the other stories
Speaker 1: making news in New York and around the world, and
Speaker 1: for that we're joined by Bloomberg's Michael Laher.
Speaker 2: Michael, Good morning, Good morning, Karen.
Speaker 11: Hurricane Oscar made landfall and Cuba last night, bringing powerful
Speaker 11: winds across the island, which is already experiencing an island
Speaker 11: wide power outage. Senior hurricane specialist Brad Reinhardt, What's.
Speaker 12: Gonna be the biggest problem going forward is the heavy
Speaker 12: rainfall associated with OSCAR. So, I mean it could produce
Speaker 12: rainfall amounts of six to twelve inches with isolated amounts
Speaker 12: up to eighteen inches across eastern Cuba, and so that's
Speaker 12: going to pose the potential for flash flooding and mudslides,
Speaker 12: particularly over areas of mountainous terrain.
Speaker 11: Oscar's maximum wind speeds were eighty miles an hour when
Speaker 11: he made landfall. Investigation has underway in Georgia, where a
Speaker 11: catastrophic dock collapse took place on an island south of Savannah,
Speaker 11: killing at least seven people. Several more were injured. McIntosh County,
Speaker 11: Georgia official Kate Kerwaki says that President Biden has called
Speaker 11: to offer his support.
Speaker 1: I've personally had telephone calls from many elected officials from
Speaker 1: every sector, beginning with our president on down to fellow
Speaker 1: commissioners in our neighboring communities.
Speaker 11: Officials say the ferry bridge was relatively new. It was
Speaker 11: built at the end of twenty twenty one, which raises
Speaker 11: a lot of questions about why it would fail so soon.
Speaker 11: A helicopter crashed into a radio tower in Houston, Texas.
Speaker 11: The pilot and three passengers were all killed when the
Speaker 11: chopper brought down the tower in a Houston neighborhood. Authorities
Speaker 11: and witnesses say the fiery aftermath and debris spread across
Speaker 11: two to three blocks.
Speaker 3: The fire, everything was just someone like, that's what I thought.
Speaker 4: The first thing I thought it with the airplane Houston.
Speaker 11: John Whitmyer, the.
Speaker 5: Residents are secure and safe, but we have a terrible.
Speaker 11: Accident see multiple fatalities. Police say a child was among
Speaker 11: the four killed. President Joe Biden's administration unveiled a proposal
Speaker 11: today that would require private health plans to cover over
Speaker 11: the counter contraception at no additional cost to consumers. With
Speaker 11: the FDA's approval of Ophil, the US joined more than
Speaker 11: one hundred countries where birth control is already available without
Speaker 11: barriers such as doctor's appointments or parental approval. Global News
Speaker 11: twenty four hours a day and whenever you want it
Speaker 11: with the Bloomberg News. Now, I'm michae La Barr, and
Speaker 11: this is Bloomberg Care.
Speaker 1: All right, Michael Barr, thank you time Now for the
Speaker 1: Bloombergy Sports Update with John stash Hour. John good Morning.
Speaker 6: Didn't want to care of these Mets provided their fans
Speaker 6: with some great womans the past month, but the season
Speaker 6: ended in Los Angeles. The Dodgers won ten and their
Speaker 6: four series wins. LA outscored the Mets thirty seven to seven.
Speaker 6: The LCS MVP with shortstop Tommy Edmund hit over four
Speaker 6: hundred and in Game six, Edmund had a two run
Speaker 6: double the first inning a two run homer in the third.
Speaker 6: Peede Alonzo reflects on what the Mets still accomplished.
Speaker 13: There's so much for us to be proud of what
Speaker 13: we've overcome. How we became like brothers. I mean we
Speaker 13: were just like we accepted everyone for who they were.
Speaker 13: We came together, we gelled, We overcame so much adverseitee.
Speaker 6: It'll be just an interesting offseason for Alonzo. He'll be
Speaker 6: a free agent. Now get ready for the Aaron Judge
Speaker 6: Versus show. Hey O Tani Hype. Yankees and Dodgers start
Speaker 6: the World Series Friday in LA Week seven dugs for
Speaker 6: the Jets and Giants in Pittsburgh, Steelers scored the last
Speaker 6: thirty one beat the Jets thirty seven to fifteen.
Speaker 2: Russell Wilson debuted.
Speaker 6: For Pittsburgh, through for two touchdowns, ran for another two
Speaker 6: more Aaron Rodgers interceptions. That's six in the last three
Speaker 6: games as new teammate DeVante Adams a non factor in
Speaker 6: the Jets have lost four in a row. They're two
Speaker 6: and five, as are the Giants, who are zero and four.
Speaker 6: At Homely Glee scored one touchdown in four home games. Philadelphia,
Speaker 6: led by the ex Giants sake one. Barkley won twenty
Speaker 6: eight to three. Barkley at one hundred and seventy six
Speaker 6: yards exactly one hundred more than the Giants ran four
Speaker 6: Eagles at eight sacks in London. Jacksonville sent the Patriots
Speaker 6: to a sixth straight loss, thirty two to sixteen. The
Speaker 6: Commanders a forty to seven route of Carolina. The Super
Speaker 6: Bowl rematch, like the last time at Kansas City, win
Speaker 6: over the forty nine Ers twenty eight to eighteen. The
Speaker 6: Chiefs were six to oher with Detroit to win at Minnesota,
Speaker 6: case the only team still undefeated. The decisive Game five
Speaker 6: of the WNBA Finals went to overtime. The Liberty prevailed
Speaker 6: sixty seven to sixty two over Minnesota, first championship in
Speaker 6: franchise history.
Speaker 4: JOHNS.
Speaker 2: Stanshawad Bloomberg Sports, Karen and Eda.
Speaker 14: Coast to coast on Bloomberg Radio, nationwide on Sirius XM,
Speaker 14: and around the world on Bloomberg dot Com and the
Speaker 14: Bloomberg Business app. This is Bloomberg Daybreak.
Speaker 2: Good morning. I'm Nathan Hager. Israel is honing its attack
Speaker 2: plan against Iran, nearly three weeks after the country's massive
Speaker 2: ballistic missile strike against Israel earlier this month. The latest
Speaker 2: provocation a Hezbola drone attack that breached Israel's air defenses
Speaker 2: and exploded near Israeli Prime Minister Benjamin Netanyahu's home over
Speaker 2: the weekend. For the very latest, we were joined now
Speaker 2: by Bloomberg News Israel Bureau chief Ethan Brunner in Tel Aviv. Ethan,
Speaker 2: good morning. So what is the latest? I understand Israel
Speaker 2: has been going after Hesbola financial institutions in its latest strikes.
Speaker 4: That's right, Nathan, they've been.
Speaker 5: They've they announced late last night our time that they
Speaker 5: were about to start doing so, and urging civilians to
Speaker 5: live near the buildings that housed these Al Khard al
Speaker 5: Hassan Association.
Speaker 4: Institutions to get out.
Speaker 5: Of the way, and then they began a pretty heavy
Speaker 5: bombing campaign against them. They argue that this quasi bank
Speaker 5: is in fact the way in which His Blood gets
Speaker 5: its money, and in fact, the US Treasury did sanction
Speaker 5: that organization eight years ago.
Speaker 4: So there's some hitt.
Speaker 2: So what does this tell us, then, ethan, about where
Speaker 2: Israel could be going now against Iran. It's been nearly
Speaker 2: three weeks since that ballistic missile strike, and now this
Speaker 2: concern raised with the latest potential attack coming very close
Speaker 2: to Israeli Prime Minister Netanyahu himself.
Speaker 5: Yes, well, of course it was a His Blood drone,
Speaker 5: you know, not an Iranian drone. But we all know,
Speaker 5: at least Israel says, and we accept on some level
Speaker 5: that Iran is behind his bla very heavily, both in
Speaker 5: terms of arms and money. Iran did distance itself from
Speaker 5: that attack and is trying to keep in theory, you know,
Speaker 5: calm things down. But there's no question that Israel is
Speaker 5: planning some severe counterattack against Iran.
Speaker 4: I don't think it's going to come the next day
Speaker 4: or two.
Speaker 5: We do have Almos Hawksteen, the American envoy to Lebanon,
Speaker 5: in be route today, and we do have Tony Blink
Speaker 5: and the American Secretary of State do here tomorrow. So
Speaker 5: I think that there'll be some diplomatic activity for the
Speaker 5: next couple of days. And don't forget that the Americans
Speaker 5: provided the Israelis with anti ballistic missile defense system which
Speaker 5: is now in place in Israel. So everyone's getting ready
Speaker 5: for something, that's for sure.
Speaker 14: Yeah.
Speaker 2: Have we seen any signs at this point, Ethan, that
Speaker 2: this round of this latest round of diplomatic activity has
Speaker 2: had any impact on what the Israeli security cabinet might
Speaker 2: be planning at this point.
Speaker 5: It's a little unclear. They had a six or seven
Speaker 5: hour meeting late last night and into the morning. Not
Speaker 5: that many details have emerged as we underst stand it,
Speaker 5: They discussed a bunch of things, which does tell us
Speaker 5: a little something about the potential for diplomacy. There does
Speaker 5: seem to be an appetite. I don't know that it
Speaker 5: is overwhelming in the cabinet for some kind of more
Speaker 5: regional deal that involves the hostage is held by Hamas
Speaker 5: in Gaza, the situation at othern Elebanon by his Bellah,
Speaker 5: and you.
Speaker 4: Know, and the Houties and Iran and so on. So
Speaker 4: there was some notion of some kind of a broader deal,
Speaker 4: but it's not very clear what that would mean at
Speaker 4: this point.
Speaker 2: Does that idea of a broader deal imply that the
Speaker 2: death of Hamas leader Sinwar has had some impact that
Speaker 2: it could potentially be that pivot point that a lot
Speaker 2: of people were talking about before this latest drone strike
Speaker 2: on Prime Minister Ntsagna, who's home.
Speaker 5: Yes, I think it does now that, to be fair,
Speaker 5: came on top of the killing of Nostrala, the head
Speaker 5: of Hasballah. Of course those page are bombings and so on.
Speaker 5: So there was a sense in the last month, shall
Speaker 5: we say that Israel, which had felt very much on
Speaker 5: its back foot, had gotten back on the horse and
Speaker 5: was in a position to drive the story, drive the
Speaker 5: diplomacy more in its favor. So and then with the
Speaker 5: killing of Sinhwar, I agree with you, this seems like
Speaker 5: a moment when a number of israel Is again not all,
Speaker 5: not those necessarily far to the right of Natanyahu, but
Speaker 5: many would like to say take the win, let's get
Speaker 5: something going and get these sasages home, and maybe we
Speaker 5: have denatured enough of Hamas to not continue to have
Speaker 5: to go to war against it continually.
Speaker 2: Unfortunately, Ethan, we've only got about twenty seconds left. But
Speaker 2: we heard former President Trump say he's spoken with Prime
Speaker 2: Minister Natanyahu. How is US politics entering into all of
Speaker 2: this if at all?
Speaker 5: Look, I think it is to some extent. I mean,
Speaker 5: we probably need more than twenty seconds to really analyze that.
Speaker 5: But yeah, no doubt that there would be a difference
Speaker 5: between between a Trump and a Harris victory from the
Speaker 5: point of view of Israelis. But I do think both
Speaker 5: potential administrations are likely to want to not be very
Speaker 5: aggressive out here, look more domestically, and I think the
Speaker 5: Israelis are.
Speaker 4: Aware of that.
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Speaker 4: Ray