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

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Speaker 1: This is the Blueberg Daybreak your podcast. I'm Caroline Hepka.

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Speaker 1: Coming up today, Hundreds are killed in a Gaza hospital explosion,

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Speaker 1: as Israel and Hamas trade BLAMEE Biden's summit with Middle

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Speaker 1: East leaders in Jordan is canceled as he heads to Israel.

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Speaker 1: And in other news, China's growth beats forecasts as consumer

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Speaker 1: spending improves. Let's start with a roundup of our top stories.

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Speaker 1: At least five hundred people are reported to have been

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Speaker 1: killed in an explosion at a Gaza city hospital. Officials

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Speaker 1: in the Hamas run territory have blamed an Israeli airstrike

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Speaker 1: for the blast. However, Israel says that the hospital was

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Speaker 1: hit in an attempted missile strike by a Gaza based

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Speaker 1: militant group. Mark Regev is a senior advisor to the

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Speaker 1: Israeli Prime Minister, Benjamin Etniaho. We don't believe it's us.

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Speaker 2: All the evidence seems to indicate that this was a

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Speaker 2: rocket fired by Islamic chi Had that's Kamas's younger brother.

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Speaker 3: We do not target hospitals. Let's be clear.

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Speaker 4: Israel does not target hospitals.

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Speaker 1: Reggaev and the Israeli military say that in past conflicts,

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Speaker 1: around twenty percent of rockets launched by girls and militants

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Speaker 1: misfire and land within their own territory. Muhammud A Bass,

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Speaker 1: president of the Palestinian Authority which controls the West Bank,

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Speaker 1: is clear on where he believes the blame for the

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Speaker 1: hospital blast lies. What happened tonight is a great tragedy

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Speaker 1: in a horrifying war, massacre that cannot.

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Speaker 2: Be ignored or allowed to pass with all accountability.

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Speaker 5: This aggression against our people must stop, and these crimes must.

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Speaker 4: Come to an end.

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Speaker 1: Abbas, speaking through a translator, says that the explosion means

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Speaker 1: that today's planned summit between the Palestinian Authority, President Biden

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Speaker 1: and the leaders of Jordan Egypt has now been canceled.

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Speaker 1: The deadly explosion at the Al Ali Arabi Baptist Hospital

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Speaker 1: is casting a long shadow of a President Joe Biden's

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Speaker 1: dramatic wartime visit to Israel. Today. The decision by Arab

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Speaker 1: leaders to cancel that planned summit in Jordan means that

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Speaker 1: the US leader will also no longer visit the country.

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Speaker 1: The former US ambassador to Israel. Daniel Kurtze says that

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Speaker 1: the events will complicate efforts to contain a conflict that

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Speaker 1: now threatens to engulf the region. Here's what he told

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Speaker 1: Bloomberg's Balance of Power.

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Speaker 6: Preparing for this trip. Now you have the backdrop of

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Speaker 6: a horrific event at the hospital in Gaza hospital I

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Speaker 6: know well from having been there years ago. You know,

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Speaker 6: the trading of Blaine doesn't change the fact that hundreds

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Speaker 6: of people have been killed, and the President will be

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Speaker 6: landing in the midst of an escalation and the humanitarian disaster,

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Speaker 6: which does changed the narrative. So it's going to be

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Speaker 6: a much more challenging trip than even it was before

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Speaker 6: this event.

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Speaker 1: Daniel Kurtz's comments come as Biden said that he was

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Speaker 1: quote outraged and deeply saddened by the explosion. Even before

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Speaker 1: the hospital tragedy, the US had been pressing Israel to

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Speaker 1: do more to limit civilian casualties in Hamas controlled Gaza.

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Speaker 1: Israel has vowed to obliterate the group after its attacks

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Speaker 1: on the seventh of October killed one thy three hundred Israelis.

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Speaker 1: Since then, Israeli air strikes have reportedly killed more than

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Speaker 1: three thousand Gazans Now. In other news this morning, China's

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Speaker 1: economic growth beat estimates in the third quarter as consumer

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Speaker 1: spending picked up. Bloomberg's Brian Kurtis has more from Hong Kong.

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Speaker 2: China's GDP increased four point nine percent from a year ago,

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Speaker 2: stronger than the estimate of four point five percent. The

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Speaker 2: government stepped up support and consumer spending picked up. Retail

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Speaker 2: sale jumped five and a half percent in September. That

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Speaker 2: was a sizeable beat. Industrial production up four point five

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Speaker 2: percent year on year, slightly better than expected, but property

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Speaker 2: investment was down more than nine percent, and that was.

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Speaker 4: Worse than thought.

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Speaker 2: Officials won't be satisfied, and more stimulus is on the way,

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Speaker 2: including more spending on infrastructure in Hong Kong. Brian Curtis,

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Speaker 2: Bloomberg Radio.

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Speaker 1: Now to earnings news. Goldman suffered its eighth consecutive quarterly

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Speaker 1: drop in profit as its CEO attempts to revive the

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Speaker 1: bank's fortunes. Despite profit coming a third lower than last

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Speaker 1: year's third quarter, CEO David Solomon told analys He's never

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Speaker 1: been more optimistic about the bank.

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Speaker 4: I never felt more optimistic about the firm, and our

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Speaker 4: strategy has never been more clear, so regulatory uncertainty and

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Speaker 4: geopolitical risks remained top of mind. I feel very confident

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Speaker 4: about the state of our client franchise and the long

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Speaker 4: term opportunities for Bob and Sex.

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Speaker 1: Solomon has come under fire internally for his failed foray

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Speaker 1: into consumer banking. Shares in Goldman fell by one point

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Speaker 1: eight percent after the earnings. The bank has seen its

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Speaker 1: stock fall by twenty five percent since its record high

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Speaker 1: in late twenty twenty one. Meanwhile, Bank of America reported

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Speaker 1: its best third quarter results in more than a decade.

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Speaker 1: The second largest US banks will profits jump by ten

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Speaker 1: percent to seven point eight billion dollars. CEO Brian moynihan

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Speaker 1: has told Bloomberg that he sees the FED achieving its

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Speaker 1: goal of slowing consumer spending.

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Speaker 7: Frankly, the FED has won the battle of the American

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Speaker 7: consumer and they're slowing down. And then the question is

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Speaker 7: what happens next to camp predict But this this is

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Speaker 7: a four trillion dollar base, three to four hundred million

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Speaker 7: dollars a month, So think about it's hard to move

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Speaker 7: around a lot. So once it slows this level, it's

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Speaker 7: probably not going to kick right back up.

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Speaker 1: Moynihan added, that more affluent customers are now shifting excess

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Speaker 1: savings to products with higher yields. Bank of America joins JP,

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Speaker 1: Morgan and City in reporting record beads while warning of

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Speaker 1: tough times to come. In Vidia's stock slumped after the

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Speaker 1: Biden administration stepped up efforts to keep advanced chips out

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Speaker 1: of China. Shares in the chip giant saw the largest

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Speaker 1: single day drop in two months after the US announced

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Speaker 1: new export restrictions. The tighter controls will target in Vidia's

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Speaker 1: A eight hundred and h eight hundred chips, which were

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Speaker 1: designed specifically for the Chinese market. HSBC is blocking bankers

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Speaker 1: from texting on their work phones. It's the latest move

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Speaker 1: by a major lender to curb unauthorized communication methods after

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Speaker 1: a wave of industry wide fines. Mark Daniel Davies reports Now.

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Speaker 3: First it was what's Up, and now HSBC is clamping

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Speaker 3: down on texts. People familiar with the matter told Bloomberg

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Speaker 3: that the lender is in the process of banning the

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Speaker 3: isms function on company issued devices for the vast majority

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Speaker 3: of staff. The move comes as watchdogs crack down on

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Speaker 3: how bankers share and store information. That's after high profile

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Speaker 3: cases of market manipulation at some of Wall Street's biggest banks.

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Speaker 3: HSBC earlier this year agreed to pay tens of millions

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Speaker 3: of dollars in settlements to US regulators over failure to

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Speaker 3: monitor communications on unauthorized channels like WhatsApp overall firms including

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Speaker 3: Bank of America, whilst Fargo, Barclays and City Group have

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Speaker 3: agreed to pay more than two point five billion dollars

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Speaker 3: for violating record keeping rules in London, Mark Daniel Davies,

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Speaker 3: Bloomberg Radio.

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Speaker 1: Now, let's turn back to our top story today. An

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Speaker 1: explosion at a Girlza hospital that has left hundreds dead

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Speaker 1: means that President Biden's visit to the Middle East is

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Speaker 1: unraveling before he even touches down. The leaders of Jordan, Egypt,

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Speaker 1: and the Palaestinian Authority have canceled a summit with Biden

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Speaker 1: that had been scheduled in Amman. Joining me now is

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Speaker 1: Bloomberg's Israel Bureau chief Ethan Bronner. Ethan, good morning, Thank

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Speaker 1: you so much for being with us. The hospital bombing

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Speaker 1: last explosion is a terrible loss of life. But do

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Speaker 1: we know who caused it?

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Speaker 8: Well, it's hard to say that we know. The Israeli

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Speaker 8: military has just released videotape showing that before and after

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Speaker 8: of the hospital and where they say a rocket was

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Speaker 8: a failed rocket launch occurred from Islamic Jihad. I mean,

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Speaker 8: I think it's very very likely that the Israeli military

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Speaker 8: is telling the truth here and that they didn't bomb

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Speaker 8: the hospital. I don't know that that's going to make

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Speaker 8: any difference in how the region views what happened.

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Speaker 1: However, Okay, what does that mean then for President Biden

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Speaker 1: for US support? I mean, we're anticipating in a few

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Speaker 1: hours that President Biden will touch down in Israel.

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Speaker 8: Indeed, he's doing here in two hours. It means that,

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Speaker 8: of course, as you said, his summit with Arab leaders

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Speaker 8: in Aman was canceled, and it means that there is

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Speaker 8: growing alienation to the United States and Israel in the region.

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Speaker 8: And it means that you know, the sense of that

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Speaker 8: there's the kind of an Israeli American narrative and then

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Speaker 8: the rest of the regions is increasing and the gap

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Speaker 8: is very dangerous because it means there could be a

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Speaker 8: widening war heading toward his Belah.

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Speaker 1: What has Israel said about Hamas and the ground offensive.

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Speaker 1: Then again, as the narrative, as the view perhaps is

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Speaker 1: changing and shifting. What is Israel's view.

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Speaker 8: It has not shifted its own view of the significance

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Speaker 8: of what happened in October seventh and the existential risk

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Speaker 8: that it poses to Israel, the sense that Israelis cannot

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Speaker 8: live under a threat of such abuse and slaughter, and

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Speaker 8: they say, we still have to go in and take

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Speaker 8: out Hamas the Asmericans, of course, and I think Europeans

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Speaker 8: are urging some caution and some restraint, but they're not

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Speaker 8: conditioning aid on those things, and the Israelis feel that

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Speaker 8: they're going to go in as Ever, at least that's

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Speaker 8: the appearance right now.

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Speaker 1: Okay, you talked about, you know, the difference that the

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Speaker 1: fissure in terms of the perspective within the region. The

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Speaker 1: Jordanian king has said that the whole region is at

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Speaker 1: the brink of falling into the Abyss. That was his word.

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Speaker 1: There has been there have been anti Israeli protests in

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Speaker 1: cities in the region, more tax as you mentioned, from

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Speaker 1: Habila in the north into Israel. What are the risks then,

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Speaker 1: of another front of a widening conflict.

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Speaker 8: Now the risks are enormous. I think that the Hisbelah

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Speaker 8: has been well stocked with between one hundred, one hundred

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Speaker 8: and fifty thousand missiles and rockets, some of them are

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Speaker 8: GPS guided to reach Tel Aviv. And I think that

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Speaker 8: if things get terrible or more terrible, shall we say

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Speaker 8: in Gaza that the risk of the his Bala entering

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Speaker 8: this conflict is great? Now the Americans have sent two

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Speaker 8: aircraft carriers and fleets to discourage them. I don't know

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Speaker 8: if it's going to do the trick. The Americans seem

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Speaker 8: to be saying that if Isabella enters the Fray, that

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Speaker 8: the Americans will fight on the side of Israel.

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Speaker 1: We shall see what is happening then in Gaza now,

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Speaker 1: for civilians.

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Speaker 8: They're being asked again by the Israelis to move south

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Speaker 8: to a particular area where they say humanitarian aid will

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Speaker 8: be provided. That's not a very big place. People who

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Speaker 8: know the region say that it's hard to imagine one

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Speaker 8: or two million people fitting into where they're being asked

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Speaker 8: to go. And the bombings are pretty intense all over,

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Speaker 8: so there's a sense that it doesn't make a difference

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Speaker 8: whether you're in the north of the south. At least

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Speaker 8: that's what I'm being told by people on the ground.

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Speaker 8: So it's pretty chaotic and pretty terrible.

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Speaker 1: Ethan, this, as you say, a terrible moment. It must

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Speaker 1: be incredibly difficult to live this and also to report

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Speaker 1: on this. You know, a perspective at this point, as

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Speaker 1: you're anticipating President Biden arriving, what is the sense the

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Speaker 1: feeling where you are about what is happening in a

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Speaker 1: wartime Israel.

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Speaker 8: I think there's a deeply a funereal sense, a sense

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Speaker 8: that things that had been understood, it agreed, are no

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Speaker 8: longer accepted in agreed, that there's a sense of vulnerability

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Speaker 8: in Israel, that its neighbors hate it more than it

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Speaker 8: understood or believed. And at the same time, I have

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Speaker 8: to say, there remains a deep resolve in Israel to

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Speaker 8: take on hamas, to take on its enemies, and to say, listen,

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Speaker 8: we're not going anywhere. If we have to fight and

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Speaker 8: lose a whole bunch of people to prove that we're

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Speaker 8: not going anywhere, we're ready.

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Speaker 1: Ethan, thank you so much for joining me this morning, Bluebags,

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Speaker 1: Israel Bureau Chief Ethan Bronna. Now, the Israel Hamas is

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Speaker 1: also playing out across Europe, which has struggled to find

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Speaker 1: a common response to the Middle East crisis. Germany's Olaf Schultz,

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Speaker 1: remember visited Israel on Tuesday. He stood with Prime Minister

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Speaker 1: Benjamin Netanyahoo when Netuna who talked about how mass committing

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Speaker 1: quote the worst crimes committed against Jews since the Holocaust.

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Speaker 1: So joining us now is our Bloomberg europe correspondent Maria today.

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Speaker 1: Good morning, Maria. There was an emergency call and also

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Speaker 1: a press conference yesterday of European leaders What emerged from that, Maria?

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Speaker 5: Yes, and I think we should note, however, when Olive Scholtz,

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Speaker 5: but even the European leadership yesterday in this Carl and

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Speaker 5: then the press conference that took place later I believe

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Speaker 5: it was around eight thirty pm local time, they weren't

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Speaker 5: really informed about this hit on the hospital and the

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Speaker 5: many casualties that it has left behind. So obviously this

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Speaker 5: could be a game changer, and I would really stress

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Speaker 5: comments that were made prior probably do not reflect the

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Speaker 5: thinking now, or at least definitely not the many elements

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Speaker 5: that the European leadership is looking at. There was this call,

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Speaker 5: obviously the idea was to regigerate and coordinate the European response. Obviously,

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Speaker 5: what emerged out of it is what has been the

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Speaker 5: European line until now, which is stand with Israel was

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Speaker 5: hit by a terror group is unjustified. There's no ifs

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Speaker 5: or butts about it. But then also this idea that

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Speaker 5: there is a very serious humanitarian crisis has probably been

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Speaker 5: aggravated and that that requires a level of political consensus

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Speaker 5: how to deal with this and de escalate. But I

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Speaker 5: would also stress the timing the meeting, the timing of

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Speaker 5: the press conference, and probably even that trip from Schatz.

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Speaker 5: Obviously a lot of that has changed in light of

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Speaker 5: what happened. It was all happening at the same time,

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Speaker 5: and I think the minds of the European leadership this

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Speaker 5: morning are probably on a different headspace than they were

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Speaker 5: yesterday evening before they knew about this.

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Speaker 1: Yeah, indeed, okay, that's a point worth making. I mean,

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Speaker 1: foreign policy in the past has been something of an

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Speaker 1: Achilles heel. I mean, perhaps simply a function that Europe

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Speaker 1: is so many different countries. The initial response has been

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Speaker 1: quite different from different countries. What are the leaders now

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Speaker 1: do you think going to be thinking about? What are

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Speaker 1: they going to be doing on euaid to Palestinians on

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Speaker 1: the Fring of hostages on those sort of more specific issues.

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Speaker 1: Do we have any clues about what may emerge now

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Speaker 1: perhaps from you know after the initials response?

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Speaker 5: For me, well, we have Now this is a lot

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Speaker 5: of the reaction which I believe will probably go in

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Speaker 5: crescendo today and we're going to hear more about this.

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Speaker 5: Is already the head of the European Commissioner sort of underline,

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Speaker 5: who has taken a lot of that criticism in terms

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Speaker 5: of the European position in this crisis. Remember, she went

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Speaker 5: to Israel on the Friday and again repeated, perhaps some

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Speaker 5: say seeing this from a very German perspective, to in

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Speaker 5: which the country feels it has a moral duty to

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Speaker 5: because of history, to be a strong ally to Israel

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Speaker 5: and to really just give this idea that no matter what,

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Speaker 5: Germany will support the State of Israel and Israeli people. Uh,

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Speaker 5: in the circumstances of the statehood and and and its

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Speaker 5: future and and making sure that it is there for

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Speaker 5: for Israeli people.

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Speaker 8: Uh.

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Speaker 5: But she has put out a tweet saying that she

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Speaker 5: is was saddened by this strike, repeating there is no

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Speaker 5: excuse for hitting hospitals, especially not when it is known

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Speaker 5: that they are full of civilians and staff and people

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Speaker 5: that are being treated. And she also says all of

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Speaker 5: the facts will have to be established and whoever is

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Speaker 5: responsible for this will have to be held accountable. We

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Speaker 5: see a similar reaction from emmanue and Macon this morning,

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Speaker 5: who's also repeated the humanitarian corritor has to be opened

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Speaker 5: as soon as possible. So obviously you see some of

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Speaker 5: the language there is changing as you see. However, European

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Speaker 5: foreign policy is always complicated because you're reflecting the domestic

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Speaker 5: audience of twenty seven different countries, You're reflecting views of

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Speaker 5: the world that are different. The European Council is supposed

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Speaker 5: to bring all of this together, and I think that's

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Speaker 5: why we had that conference call yesterday to really establish

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Speaker 5: a joint position. But you also have to think about

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Speaker 5: the dynamics that play out in Brussels. We know that

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Speaker 5: there is fierce competition between the different institutions, the Council,

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Speaker 5: the Foreign Office, the Commission, all of this personal dynamics too.

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Speaker 5: It's not a secret that there is tension between the

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Speaker 5: head of the European Commission for underlying Head of the

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Speaker 5: Council Michelle. There's a lot of questions about the operational

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Speaker 5: relationship that they have. So all of this is coming

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Speaker 5: to the surface at a point in which obviously the

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Speaker 5: region is now at boiling point.

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