1
00:00:02,480 --> 00:00:10,160
Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. This is the Bloomberg

2
00:00:10,240 --> 00:00:13,600
Speaker 1: DAYBAQ podcast, available every morning on Apple, Spotify or wherever

3
00:00:13,640 --> 00:00:16,640
Speaker 1: you listen. It's Wednesday, the second of October here in London.

4
00:00:16,720 --> 00:00:18,080
Speaker 1: I'm Caroline Hepka and.

5
00:00:18,040 --> 00:00:21,560
Speaker 2: I'm Stephen Carroll. Coming up today, Israel vows to retaliate

6
00:00:21,600 --> 00:00:25,240
Speaker 2: after Iran launches a ballistic missile attack on the country.

7
00:00:25,480 --> 00:00:27,360
Speaker 2: We have the latest on this developing story.

8
00:00:27,680 --> 00:00:32,559
Speaker 1: Vice presidential candidates Vans and Walls clash on immigration and abortion.

9
00:00:32,640 --> 00:00:35,520
Speaker 1: With just five weeks to go until US voters cast

10
00:00:35,560 --> 00:00:36,800
Speaker 1: their ballots.

11
00:00:36,560 --> 00:00:40,400
Speaker 2: Plus Chinese docks saw again, Hong Kong traders returned from

12
00:00:40,400 --> 00:00:43,760
Speaker 2: a public holiday to morre stimulus induced euphoria.

13
00:00:44,159 --> 00:00:46,280
Speaker 1: Let's start with a roundup of our top stories.

14
00:00:46,600 --> 00:00:49,920
Speaker 2: Israel has vowed to retaliate after Iran attacked the country

15
00:00:49,920 --> 00:00:53,280
Speaker 2: with ballistic missiles and a sharp escalation between the Middle

16
00:00:53,320 --> 00:00:57,240
Speaker 2: Eastern adversaries. The strike involved around two hundred missiles, what

17
00:00:57,440 --> 00:01:01,680
Speaker 2: Israel said it mostly intercepted, with one person reportedly killed

18
00:01:01,760 --> 00:01:05,320
Speaker 2: in the West Bank. The Iranian reprisal follows the decision

19
00:01:05,360 --> 00:01:08,560
Speaker 2: by Israel to send ground forces across the border into

20
00:01:08,640 --> 00:01:12,280
Speaker 2: Lebanon and the killing of Habila leader Hassan Maasrala in

21
00:01:12,319 --> 00:01:15,560
Speaker 2: a Beirut air strike last week. The US National Security

22
00:01:15,560 --> 00:01:18,360
Speaker 2: Advisor Jake Sullivan says they will also respond.

23
00:01:19,080 --> 00:01:21,679
Speaker 3: We're proud of the actions that we've taken alongside Israel

24
00:01:21,720 --> 00:01:24,520
Speaker 3: to to protect and defend Israel. We have made clear

25
00:01:24,560 --> 00:01:27,679
Speaker 3: that there will be consequences, severe consequences for this attack,

26
00:01:27,720 --> 00:01:29,520
Speaker 3: and we will work with Israel to make that the.

27
00:01:29,480 --> 00:01:32,600
Speaker 2: Case, Jake Sullivan. There The European Union said in a

28
00:01:32,600 --> 00:01:35,920
Speaker 2: statement that successive waves of attacks and retaliations have been

29
00:01:35,959 --> 00:01:40,959
Speaker 2: fueling an uncontrollable spiral of conflict. Iran's foreign minister spoke

30
00:01:41,000 --> 00:01:44,279
Speaker 2: to his British, French, and German counterparts and separate phone

31
00:01:44,280 --> 00:01:47,920
Speaker 2: calls warning against any third party intervening in this conflict.

32
00:01:48,160 --> 00:01:51,800
Speaker 2: According to a telegram post by Iran's Foreign ministry.

33
00:01:51,920 --> 00:01:56,240
Speaker 1: The latest Iranian strike came with minimal warning, which was

34
00:01:56,240 --> 00:01:59,440
Speaker 1: in contrast to April's attack, which was telegraphed well in

35
00:01:59,480 --> 00:02:04,200
Speaker 1: advance and involved slower moving missiles and drones. Tehran's decision

36
00:02:04,240 --> 00:02:07,840
Speaker 1: to launch another direct attack on Israel has raised the

37
00:02:07,840 --> 00:02:11,600
Speaker 1: prospect of an escalatory series of tip for tat reprisals

38
00:02:11,800 --> 00:02:14,880
Speaker 1: between the two sides. The UK Prime Minister Kirs Starmer

39
00:02:14,919 --> 00:02:16,560
Speaker 1: says he is deeply concerned.

40
00:02:17,120 --> 00:02:21,840
Speaker 4: I utterly condemn this attempt by the Iranian regime to

41
00:02:22,000 --> 00:02:28,160
Speaker 4: harm innocent Israelis, to escalate this incredibly dangerous situation and

42
00:02:28,280 --> 00:02:31,680
Speaker 4: push the region ever closer to the brink.

43
00:02:32,680 --> 00:02:36,120
Speaker 1: Starmer's comments come after the UK Ministry of Defense confirmed

44
00:02:36,120 --> 00:02:38,800
Speaker 1: that British military forces had been involved in the efforts

45
00:02:38,800 --> 00:02:41,839
Speaker 1: to counter the strike from Iran. This morning, we're also

46
00:02:41,919 --> 00:02:45,360
Speaker 1: getting reports that Hez Bullah says that its forces have

47
00:02:45,560 --> 00:02:49,720
Speaker 1: clashed with Israeli soldiers in a village in southern Lebanon.

48
00:02:49,840 --> 00:02:54,160
Speaker 1: The confrontation marks the latest escalation of Israel's weeks long

49
00:02:54,240 --> 00:02:57,680
Speaker 1: campaign against the Iran back militant group, and will further

50
00:02:57,720 --> 00:03:01,160
Speaker 1: add to concerns from Western and Arrow nations over a

51
00:03:01,200 --> 00:03:02,840
Speaker 1: wider Middle East conflict.

52
00:03:04,240 --> 00:03:07,000
Speaker 2: Oil prices are extending their surge into a second day

53
00:03:07,080 --> 00:03:10,120
Speaker 2: following a round strike on Israel. The global benchmark Brent

54
00:03:10,200 --> 00:03:13,760
Speaker 2: crewe climbed above seventy four dollars a barrel after briefly

55
00:03:13,800 --> 00:03:17,440
Speaker 2: spiking by more than five percent on Tuesday. The continued

56
00:03:17,480 --> 00:03:22,079
Speaker 2: advance reflects concern that regional hostilities could disrupt supplies, especially

57
00:03:22,120 --> 00:03:24,720
Speaker 2: given the Middle East accounts for around a third of

58
00:03:24,919 --> 00:03:29,960
Speaker 2: global supplies. Torbjorn Tornvist, the chair of oil trading company

59
00:03:30,040 --> 00:03:34,680
Speaker 2: Gunwor Group, says uncertainty drives profit in the sector.

60
00:03:35,160 --> 00:03:38,760
Speaker 5: So of course in times so turbollouns and drastically changing,

61
00:03:39,440 --> 00:03:44,080
Speaker 5: changing arbitrage and prices and so forth. There's no secret

62
00:03:44,600 --> 00:03:47,880
Speaker 5: you know it yourself that old trading company is done

63
00:03:47,880 --> 00:03:48,840
Speaker 5: extremely well.

64
00:03:49,600 --> 00:03:53,840
Speaker 2: Gunvor's Torbiorn Tornfogus. They're speaking at the Energy Market's Forum

65
00:03:53,880 --> 00:03:57,960
Speaker 2: to Bloomberg's germani Bersecchi Haven assets including bonds, gold, and

66
00:03:58,000 --> 00:04:02,120
Speaker 2: the US dollar, have also climbed since the conflict's latest escalation.

67
00:04:03,560 --> 00:04:07,280
Speaker 1: US vice presidential nominees JD Vance and Tim Walls have

68
00:04:07,440 --> 00:04:11,120
Speaker 1: met for their first and potentially only debate before November's

69
00:04:11,280 --> 00:04:15,320
Speaker 1: US election. The two clashed over abortion, immigration, and the

70
00:04:15,320 --> 00:04:17,359
Speaker 1: Middle East during the televised event.

71
00:04:17,720 --> 00:04:19,599
Speaker 6: That's one of the things that Donald Trump and I

72
00:04:19,680 --> 00:04:22,680
Speaker 6: are endeavoring to do. I want us as a Republican

73
00:04:22,720 --> 00:04:25,560
Speaker 6: party to be pro family in the fullest sense of

74
00:04:25,600 --> 00:04:28,839
Speaker 6: the word. Donald Trump put this all into motion. He

75
00:04:29,160 --> 00:04:31,800
Speaker 6: brags about how great it was that he put the

76
00:04:31,880 --> 00:04:35,040
Speaker 6: judges in in overturned Rovers's wait fifty two years of

77
00:04:35,040 --> 00:04:36,000
Speaker 6: personal autonomy.

78
00:04:37,160 --> 00:04:42,720
Speaker 1: JD Vance and Tim Wolls there discussing abortion rules in

79
00:04:42,800 --> 00:04:45,880
Speaker 1: the US during that debate. There recent polls show a

80
00:04:46,040 --> 00:04:49,560
Speaker 1: close contest with five weeks to go before election date.

81
00:04:49,600 --> 00:04:53,360
Speaker 1: A September Bloomberg News Morning Consult poll of Swing states

82
00:04:53,360 --> 00:04:56,920
Speaker 1: found Harris ahead of Trump by fifty forty seven percent

83
00:04:57,200 --> 00:04:58,600
Speaker 1: among likely voters.

84
00:04:59,000 --> 00:05:01,479
Speaker 2: Chinese shares listed Hong Kong have jumped the most in

85
00:05:01,480 --> 00:05:04,680
Speaker 2: almost two years as traders returned from a public holiday.

86
00:05:04,960 --> 00:05:08,560
Speaker 2: The Hanksang China Enterprises Index climbed at one point by

87
00:05:08,560 --> 00:05:11,520
Speaker 2: more than eight percent, as property developers led the gains

88
00:05:11,560 --> 00:05:14,400
Speaker 2: on a winning streak, with the sector leaping by an

89
00:05:14,440 --> 00:05:18,000
Speaker 2: inter day record of more than thirty percent. The extended

90
00:05:18,080 --> 00:05:21,240
Speaker 2: rally comes off the back of increased optimism around China's

91
00:05:21,279 --> 00:05:25,040
Speaker 2: economy after authorities unveiled a range of stimulus measures last

92
00:05:25,040 --> 00:05:28,240
Speaker 2: week that included interest rate cuts, freeing up of cash

93
00:05:28,279 --> 00:05:31,440
Speaker 2: for banks, and liquidity support for stocks.

94
00:05:32,040 --> 00:05:35,080
Speaker 1: France is delaying its plan to meet the three percent

95
00:05:35,200 --> 00:05:38,719
Speaker 1: EU deficit limit. Speaking during his first parliamentary address, the

96
00:05:38,760 --> 00:05:41,560
Speaker 1: Prime Minister Michelle Barnier said the country will aim to

97
00:05:41,600 --> 00:05:45,040
Speaker 1: meet the target by twenty twenty nine instead of twenty

98
00:05:45,080 --> 00:05:48,960
Speaker 1: twenty seven through tax hikes and spending cuts.

99
00:05:49,279 --> 00:05:51,839
Speaker 7: So, but you want the effort to be shared collectively

100
00:05:52,240 --> 00:05:55,960
Speaker 7: and will request participation from very large companies which make

101
00:05:56,000 --> 00:05:59,880
Speaker 7: significant profits. We will do this without calling into question

102
00:06:00,040 --> 00:06:04,000
Speaker 7: our competitiveness. We'll also ask for an exceptional contribution from

103
00:06:04,000 --> 00:06:08,839
Speaker 7: the wealthiest French people to avoid tax exemption strategies. Finally,

104
00:06:09,040 --> 00:06:10,960
Speaker 7: we will fight against tax and social fraud.

105
00:06:13,880 --> 00:06:16,719
Speaker 1: Prime Minister Michelle Barnet is speaking there for our translator.

106
00:06:16,880 --> 00:06:20,239
Speaker 1: He also said that France's deficit is set to expand

107
00:06:20,279 --> 00:06:23,920
Speaker 1: beyond six percent this year and the situation would worsen

108
00:06:24,080 --> 00:06:27,560
Speaker 1: further without action. In response to the plans, the leader

109
00:06:27,600 --> 00:06:30,520
Speaker 1: of the far right National Rally Marine La Penn, indicated

110
00:06:30,520 --> 00:06:33,960
Speaker 1: that her party would not support and expected no confidence

111
00:06:34,000 --> 00:06:37,159
Speaker 1: motion in the new prime minister and urge the administration

112
00:06:37,279 --> 00:06:40,040
Speaker 1: to transform Barnier's intentions into action.

113
00:06:41,600 --> 00:06:44,240
Speaker 2: The UK's Prime Minister, Keir Starmer is heading to Brussels

114
00:06:44,240 --> 00:06:47,000
Speaker 2: to in an attempt to reset relations with the European

115
00:06:47,120 --> 00:06:50,120
Speaker 2: Union Ahead of his meeting Commission President er Slavander Line

116
00:06:50,120 --> 00:06:52,280
Speaker 2: Bloomberg has learned that the two parties are looking to

117
00:06:52,279 --> 00:06:57,200
Speaker 2: hold their first formal bilateral summit next year. James Wilcock

118
00:06:57,200 --> 00:06:59,040
Speaker 2: has more The British.

119
00:06:58,640 --> 00:07:01,280
Speaker 8: Government wants a better deal on to defence and fewer

120
00:07:01,400 --> 00:07:05,640
Speaker 8: checks on food. The EU wants cooperation on energy and phishing,

121
00:07:06,040 --> 00:07:09,560
Speaker 8: but can the two succeed where many previous Brexit talks

122
00:07:09,560 --> 00:07:12,560
Speaker 8: have failed. The new Labor government has made improving ties

123
00:07:12,600 --> 00:07:16,120
Speaker 8: with Europe a campaigning slogan, but privately EU officials say

124
00:07:16,160 --> 00:07:18,880
Speaker 8: they are frustrated by the lack of detail and their.

125
00:07:18,680 --> 00:07:19,520
Speaker 9: Plans so far.

126
00:07:20,200 --> 00:07:23,200
Speaker 8: In Birmingham, James Wilcock Bloomberg Radio.

127
00:07:23,240 --> 00:07:26,200
Speaker 2: We're starting our reporting this morning in the Middle East

128
00:07:26,440 --> 00:07:29,560
Speaker 2: after yesterday's missile attacks on Israel. We do have a

129
00:07:29,600 --> 00:07:33,960
Speaker 2: piece looking at Israel's air defenses which I'd recommend. They include,

130
00:07:34,080 --> 00:07:36,280
Speaker 2: of course Iron Dome, which many of us know that

131
00:07:36,360 --> 00:07:39,320
Speaker 2: intercepts around ninety percent of projectiles, but other are also

132
00:07:39,440 --> 00:07:43,280
Speaker 2: other systems called David's Sling and arrow on our quick

133
00:07:43,320 --> 00:07:46,320
Speaker 2: tach article looks at the effectiveness of these multi billion

134
00:07:46,360 --> 00:07:49,280
Speaker 2: dollar systems and also how Israel's planning a new one

135
00:07:49,400 --> 00:07:51,800
Speaker 2: to catch projectiles that are fired at close range. You'll

136
00:07:51,800 --> 00:07:53,520
Speaker 2: find this place on Bloomberg dot Com and on the

137
00:07:53,600 --> 00:07:58,160
Speaker 2: terminal the air defenses Israel uses against Iran's missiles.

138
00:07:58,720 --> 00:08:01,800
Speaker 1: Now, let's focus then on the fallout from the attack.

139
00:08:01,880 --> 00:08:06,080
Speaker 1: After Iran fired around two hundred ballistic missiles at Israel,

140
00:08:06,240 --> 00:08:10,760
Speaker 1: how well Israel responds, Bloomberg's reported. Dan Williams joins US

141
00:08:10,760 --> 00:08:13,560
Speaker 1: Now from Jerusalem for more on this, Dan, good morning.

142
00:08:14,040 --> 00:08:18,000
Speaker 1: How did the attack play out in Israel? Did the

143
00:08:18,040 --> 00:08:21,720
Speaker 1: air defenses hold? They appeared to have held.

144
00:08:23,360 --> 00:08:27,000
Speaker 10: Indeed, it was a very dramatic half hour or so

145
00:08:27,120 --> 00:08:31,720
Speaker 10: throughout the country. It was not telegraphed in advance the

146
00:08:31,720 --> 00:08:35,920
Speaker 10: way the April attack by Iran was. However, Israeli's had

147
00:08:35,920 --> 00:08:39,440
Speaker 10: about two hours to prepare, given that the United States

148
00:08:39,800 --> 00:08:42,280
Speaker 10: put out a warning that it had findings not clear

149
00:08:42,320 --> 00:08:45,040
Speaker 10: from where or how that the Iranians were preparing a

150
00:08:45,040 --> 00:08:48,360
Speaker 10: ballistic missile attack. Then the Israelis put out a public

151
00:08:48,360 --> 00:08:51,640
Speaker 10: alert on their citizens to remain near shelters to avoid

152
00:08:51,679 --> 00:08:56,240
Speaker 10: congregating in public, And then toward evening the attack unfolded

153
00:08:56,360 --> 00:08:58,959
Speaker 10: over about half an hour throughout the country.

154
00:08:59,040 --> 00:09:02,200
Speaker 9: Now, what was extraor here was it literally.

155
00:09:01,920 --> 00:09:07,199
Speaker 10: Was a nationwide alert, not just because of potential missile impacts,

156
00:09:07,559 --> 00:09:13,160
Speaker 10: but potential fallout debris from successful interceptions. It's worth remembering that,

157
00:09:13,400 --> 00:09:16,480
Speaker 10: unlike in April, when just around a third of those

158
00:09:16,520 --> 00:09:19,920
Speaker 10: three hundred projectiles were ballistic missiles, this time it appears

159
00:09:19,960 --> 00:09:23,120
Speaker 10: to have been exclusively a ballistic missile salvo of around

160
00:09:23,120 --> 00:09:26,040
Speaker 10: one hundred eighty two hundred of these very high speed,

161
00:09:26,160 --> 00:09:30,760
Speaker 10: high altitude Hi payload projectiles. Now Israel has an upper

162
00:09:30,800 --> 00:09:34,760
Speaker 10: tier intercept, a system to which you alluded arrow designed

163
00:09:34,800 --> 00:09:39,160
Speaker 10: to intercept a very high altitude, including in space, But

164
00:09:39,240 --> 00:09:42,679
Speaker 10: that obviously means that the debris from a successful shootdown

165
00:09:42,720 --> 00:09:47,320
Speaker 10: can scatter far and wide, dangerously, potentially lethally. So this

166
00:09:47,480 --> 00:09:52,480
Speaker 10: really was a nationwide alert. Israeli's appeared to have sheltered appropriately.

167
00:09:53,040 --> 00:09:57,719
Speaker 10: According to Israel, there is limited casualties. There has been

168
00:09:57,760 --> 00:10:01,160
Speaker 10: some structural damage, as you noted, there was one fatality,

169
00:10:01,520 --> 00:10:04,599
Speaker 10: a Palestinian in the West Bank. But certainly this was

170
00:10:04,640 --> 00:10:09,240
Speaker 10: a jarring episode, an extraordinary day in an already extraordinary

171
00:10:09,280 --> 00:10:13,120
Speaker 10: year since this war began in October seventh, twenty twenty three.

172
00:10:14,520 --> 00:10:16,880
Speaker 2: Dan, What is Israel said it will do in response?

173
00:10:18,320 --> 00:10:19,760
Speaker 9: It is not said explicitly.

174
00:10:19,960 --> 00:10:23,920
Speaker 10: It has said everyone from the Prime Minister to the

175
00:10:23,920 --> 00:10:27,720
Speaker 10: Defense Minister to the Foreign Minister that there will be

176
00:10:27,800 --> 00:10:32,599
Speaker 10: a direct response, meaning Iran attacked Israel, therefore Israel attack.

177
00:10:32,360 --> 00:10:35,480
Speaker 9: Iran if one is to pass the statement.

178
00:10:35,520 --> 00:10:38,640
Speaker 10: The first public remarks Nataniel the Prime Minister made yesterday

179
00:10:39,000 --> 00:10:41,960
Speaker 10: at a sitting of a security cabinet to discuss this development,

180
00:10:42,440 --> 00:10:46,800
Speaker 10: He actually appeared to threaten the Iranian regime, the Iranian leadership.

181
00:10:47,160 --> 00:10:50,960
Speaker 10: He invoked Israel's recent killing of Hezbollah and Hamas leaders,

182
00:10:51,000 --> 00:10:55,640
Speaker 10: so that's potentially a personal threat against senior Iranian figures.

183
00:10:55,960 --> 00:10:59,040
Speaker 10: He also made sure to be photographed sitting next to

184
00:10:59,120 --> 00:11:03,439
Speaker 10: the chief of his foreign intelligence service, the Mossad spy service,

185
00:11:03,760 --> 00:11:07,400
Speaker 10: which is widely believed to have assassinated a mass leader

186
00:11:07,679 --> 00:11:10,280
Speaker 10: in teh Run just a few weeks ago. So it

187
00:11:10,320 --> 00:11:13,200
Speaker 10: appears that there is signaling here. Perhaps this is meant

188
00:11:13,200 --> 00:11:16,280
Speaker 10: to lower the Iranian's guards while these Raelis work on

189
00:11:16,320 --> 00:11:19,319
Speaker 10: a different type of retaliation, but appears to be signaling

190
00:11:19,640 --> 00:11:22,920
Speaker 10: that this will be painful and personal and imminent.

191
00:11:25,000 --> 00:11:29,440
Speaker 1: The US has ordered military aid to shore up Israel's defenses,

192
00:11:29,480 --> 00:11:31,880
Speaker 1: and you heard some of what the US has said

193
00:11:31,960 --> 00:11:35,880
Speaker 1: in response. We also heard from President Biden. Are there

194
00:11:36,000 --> 00:11:41,440
Speaker 1: any moves on the diplomatic front to calm tensions. You know,

195
00:11:41,440 --> 00:11:44,000
Speaker 1: we're also talking about the concerns that the EU.

196
00:11:43,800 --> 00:11:50,920
Speaker 10: Has potentially, but these given the rather awkward diplomatic architecture

197
00:11:51,040 --> 00:11:53,559
Speaker 10: in the Middle East, given that Israel is facing foes

198
00:11:54,080 --> 00:11:56,839
Speaker 10: that are ideologically committed to its destruction and therefore do

199
00:11:56,960 --> 00:12:01,080
Speaker 10: not talk to it, this always makes it difficult to

200
00:12:01,640 --> 00:12:05,360
Speaker 10: broker any sort of ceasefire. Of course, a peace agreement

201
00:12:05,400 --> 00:12:07,920
Speaker 10: is out of the question. So it's very possible that

202
00:12:07,960 --> 00:12:11,160
Speaker 10: behind the scenes, perhaps through Switzerland, perhaps through Oman, there

203
00:12:11,200 --> 00:12:14,760
Speaker 10: is urgent messaging to Iran to back off, to the

204
00:12:14,840 --> 00:12:19,040
Speaker 10: Israelis to back off potentially. But the rehtoric, as you

205
00:12:19,120 --> 00:12:22,240
Speaker 10: noted from Washington, is pretty much in concert with what

206
00:12:22,240 --> 00:12:24,760
Speaker 10: we're hearing from Israel. I think you had the National

207
00:12:24,800 --> 00:12:29,280
Speaker 10: Security Advisor talking about severe consequences for Iran, and it's

208
00:12:29,320 --> 00:12:32,480
Speaker 10: worth noting that on a smaller but nonetheless significant front,

209
00:12:32,840 --> 00:12:36,880
Speaker 10: the Lebanese front, Israel has now told its own people

210
00:12:37,000 --> 00:12:40,160
Speaker 10: and the Lebanese and Hesbela and the world that it

211
00:12:40,200 --> 00:12:44,880
Speaker 10: has lost patients with diplomatic solutions for ending Hesbela attacks

212
00:12:45,240 --> 00:12:48,160
Speaker 10: on its turf, which has displaced something like sixty thousand

213
00:12:48,480 --> 00:12:52,400
Speaker 10: of its citizens. Hesbela started attacking Israel a day after

214
00:12:52,800 --> 00:12:56,240
Speaker 10: Hamas launched this war from Gaza, and since then.

215
00:12:56,080 --> 00:12:57,760
Speaker 9: We've had repeated calls by.

216
00:12:57,679 --> 00:13:01,880
Speaker 10: Israel on Hesbella, on the Lebanese to rein in Hesbela,

217
00:13:02,280 --> 00:13:05,080
Speaker 10: a backing off. Israel has supported diplomatic efforts by the

218
00:13:05,120 --> 00:13:08,120
Speaker 10: United States by France to work out a deal whereby

219
00:13:08,160 --> 00:13:12,200
Speaker 10: Hesbela consentually backs down and backs off. Over the last

220
00:13:12,200 --> 00:13:15,760
Speaker 10: three weeks we've basically seen Israel saying to everyone it's

221
00:13:15,800 --> 00:13:18,880
Speaker 10: all over, and there's been a cascade of extraordinary and

222
00:13:18,920 --> 00:13:24,559
Speaker 10: apparently very successful strikes in various forms against Hesbela, culminating

223
00:13:24,640 --> 00:13:28,160
Speaker 10: yesterday with what appeared to be fairly large scale ground

224
00:13:28,200 --> 00:13:33,040
Speaker 10: incursions to dislodge the guerrillas from southern Lebanon through direct

225
00:13:33,120 --> 00:13:34,520
Speaker 10: action by Israel's ground.

226
00:13:34,400 --> 00:13:41,920
Speaker 2: Forces down with that military effort continuing in Lebanon, of course,

227
00:13:42,440 --> 00:13:46,400
Speaker 2: fighting to in Gaza, and now an attack by Iran.

228
00:13:46,760 --> 00:13:51,079
Speaker 2: Is this stretching Israel's military It certainly.

229
00:13:50,760 --> 00:13:53,520
Speaker 10: Is, and there will be obviously a fiscal impact. We're

230
00:13:53,520 --> 00:13:57,880
Speaker 10: already hearing about it from the Finance minister. However, Israel said,

231
00:13:57,920 --> 00:14:01,120
Speaker 10: from the outset of this war, a war that blindsided it.

232
00:14:01,400 --> 00:14:03,600
Speaker 9: But from which it appeared to have recovered.

233
00:14:03,200 --> 00:14:07,120
Speaker 10: Fairly quickly within days, that this would be a conflict

234
00:14:07,120 --> 00:14:11,040
Speaker 10: that could stretch many months, that could impact several fronts,

235
00:14:11,040 --> 00:14:14,360
Speaker 10: and indeed we've seen fighting on as many as seven fronts.

236
00:14:14,600 --> 00:14:17,400
Speaker 10: It has apparently managed to parcel out the conflicts such

237
00:14:17,440 --> 00:14:22,040
Speaker 10: as such that it avoided entering bull fighting with Hesbela

238
00:14:22,160 --> 00:14:25,520
Speaker 10: initially while it focused its efforts on Hamas in the

239
00:14:25,520 --> 00:14:29,080
Speaker 10: Gaza Strip. It now appears to have Hamas firmly on

240
00:14:29,160 --> 00:14:31,520
Speaker 10: the ropes, and it appears now to be able to

241
00:14:31,520 --> 00:14:34,560
Speaker 10: free up its troops for Lebanon on the ground and

242
00:14:34,640 --> 00:14:39,200
Speaker 10: its air forces, its standoff assets for enemies as far

243
00:14:39,240 --> 00:14:41,640
Speaker 10: away as the run in Yemen and in Syria.

244
00:14:41,720 --> 00:14:43,280
Speaker 9: So it appears to the Israelis.

245
00:14:42,840 --> 00:14:45,200
Speaker 10: A plan for the long term and have apportioned their

246
00:14:45,240 --> 00:14:46,320
Speaker 10: resources accordingly.

247
00:14:47,000 --> 00:14:50,280
Speaker 1: Dan just very briefly, and finally Prime Minister Benjamin Netanya,

248
00:14:50,360 --> 00:14:53,960
Speaker 1: who's a deeply divisive figure. What is the sentiment in

249
00:14:54,120 --> 00:14:56,720
Speaker 1: Israel around Netanyaho in the government currently.

250
00:14:57,800 --> 00:14:59,000
Speaker 9: That's an excellent question.

251
00:14:59,280 --> 00:15:03,560
Speaker 10: Following the assassination last week of the Hesbela leader in Beirut,

252
00:15:03,880 --> 00:15:07,920
Speaker 10: which came on the heels of really remarkable heavy but

253
00:15:08,000 --> 00:15:13,360
Speaker 10: nonetheless precise air barrages in Lebanon, and indeed days before that,

254
00:15:13,840 --> 00:15:18,840
Speaker 10: quite an extraordinary succession of device gadget sabotage, the blowing

255
00:15:18,920 --> 00:15:21,880
Speaker 10: up of beepers and walkie talkies used primarily by an

256
00:15:21,960 --> 00:15:25,280
Speaker 10: upper echelon of Hesbola commanders. I think there is a

257
00:15:25,320 --> 00:15:28,840
Speaker 10: sense in Israel that their country has now regained the

258
00:15:28,880 --> 00:15:32,560
Speaker 10: initiative in this war. There's a sense of increased optimism,

259
00:15:32,920 --> 00:15:36,440
Speaker 10: and that obviously amounts to a higher approval rate for

260
00:15:36,440 --> 00:15:39,560
Speaker 10: the Prime Minister himself. It appears he is improved in

261
00:15:39,600 --> 00:15:42,160
Speaker 10: the polls, but he's not yet on the home stretch.

262
00:15:42,800 --> 00:15:45,520
Speaker 2: This is Bloomberg Daybreak Europe. You're morning brief on the

263
00:15:45,600 --> 00:15:48,640
Speaker 2: stories making news from London to Wall Street and beyond.

264
00:15:48,920 --> 00:15:52,120
Speaker 1: Look for us on your podcast feed every morning, on Apple,

265
00:15:52,240 --> 00:15:54,960
Speaker 1: Spotify and anywhere else you get your podcasts.

266
00:15:55,000 --> 00:15:58,000
Speaker 2: You can also listen live each morning on London DAB Radio,

267
00:15:58,040 --> 00:16:00,360
Speaker 2: the Bloomberg Business app, and Bloomberg.

268
00:16:01,840 --> 00:16:04,600
Speaker 1: Our flagship New York station. Is also available on your

269
00:16:04,640 --> 00:16:09,360
Speaker 1: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.

270
00:16:09,600 --> 00:16:11,360
Speaker 2: I'm Caroline Hepka and I'm Stephen.

271
00:16:11,360 --> 00:16:11,640
Speaker 9: Carol.

272
00:16:11,720 --> 00:16:14,040
Speaker 2: Join us again tomorrow morning for all the news you

273
00:16:14,120 --> 00:16:17,000
Speaker 2: need to start your day right here on Bloomberg Daybreak.

274
00:16:17,040 --> 00:16:20,480
Speaker 2: Europe