WEBVTT - Israel at War After Unprecedented Intelligence Failure

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<v Speaker 1>This is Bloomberg Business Wait inside from the reporters and

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<v Speaker 1>editors who bring you America's most trusted business magazine, plus

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<v Speaker 1>global business, finance and tech news. The Bloomberg Business Week

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<v Speaker 1>Podcast with Carol Messer and Tim Stenebek from Bloomberg Radio.

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<v Speaker 2>Well, our next guest is former Deputy Assistant Secretary of Defense,

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<v Speaker 2>a retired CIA officer, and a retired US Marine reservist,

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<v Speaker 2>having served for two decades. It's both a commissioned and

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<v Speaker 2>enlisted Marine Carol. He's also the co founder of the

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<v Speaker 2>Lobo Institute. It's an organization that, in its own words, quote,

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<v Speaker 2>advises consults and teaches on current and future conflicts, how

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<v Speaker 2>to end conflicts and prevent their recurrence. I not to

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<v Speaker 2>help those who've been most effective.

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<v Speaker 3>Very pleased to have with us. Mick mulroy on Zoom

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<v Speaker 3>from Montana. Mick, nice to have you here with Tim

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<v Speaker 3>and myself. So many questions I ran, what do they know?

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<v Speaker 3>USA Toururhan, Russia maybe looking to distract, you know, the

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<v Speaker 3>focus off Ukraine. There's so many things being floated China.

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<v Speaker 3>President g not addressing what happened in terms of the conflict.

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<v Speaker 3>If you were back at the Cia. What are the

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<v Speaker 3>scenarios that you would be coming up with for President

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<v Speaker 3>Biden and the US national security teams.

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<v Speaker 4>So good to be with you all. There's many issues

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<v Speaker 4>to be addressed. Of course, this was an intelligence failure,

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<v Speaker 4>predominantly by the Israelis, but also quite frankly by the

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<v Speaker 4>United States and other regional actors, and that does have

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<v Speaker 4>to be addressed, but it's not the most pressing right now.

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<v Speaker 4>We'd be talking about the hostages. We of course have

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<v Speaker 4>responsibility for American hostages. They are it looks like up

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<v Speaker 4>to one hundred many of them who are at Gaza

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<v Speaker 4>right now. There are reports that they are in tunnels

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<v Speaker 4>and the tunnels are wired, so a traditional hostage rescue

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<v Speaker 4>would be exceptionally difficult. And I think we're going to

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<v Speaker 4>have to look at our partners in the region Egypt,

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<v Speaker 4>Katar that have some kind of leverage over Amas to

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<v Speaker 4>try to recover all the hostages, of course, including the Americans.

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<v Speaker 4>So that's one effort I think that we would need

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<v Speaker 4>to look at. The other effort we need to look

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<v Speaker 4>at is just how involved Iran was in this operation.

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<v Speaker 4>There's many indicators it was a very complex operation. There

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<v Speaker 4>was technical devices that brought down the communications in Israel. Obviously,

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<v Speaker 4>the weaponry and the equipment does indicate that Iran was involved.

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<v Speaker 4>There's also been reporting that they were involved. But I

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<v Speaker 4>think the IC needs to make a determination of just

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<v Speaker 4>what their level of involvement is because that would go

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<v Speaker 4>toward potentially freezing the six billion dollars that we just negotiated,

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<v Speaker 4>and then of course what to be done against Iran,

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<v Speaker 4>if anything, if they were directly responsible for this.

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<v Speaker 2>Well, let's start with the hostage as part of this,

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<v Speaker 2>because hostages have long been a part of I don't

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<v Speaker 2>want to say relations, but they've long been a part

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<v Speaker 2>of the skirmishes between Palestinians and Israelis, namely on the

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<v Speaker 2>Palestinian side. But prisoner swaps have often heard, sometimes after

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<v Speaker 2>years of holding hostages. But one hundred and fifty hostages, Mick,

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<v Speaker 2>this is a huge, huge number. What are the what

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<v Speaker 2>is Hamas looking for with holding these people hostage?

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<v Speaker 4>It is definitely a huge number, and the complexity of

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<v Speaker 4>that from a military toile recovery would be enormous on

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<v Speaker 4>top of all the other things I already mentioned. So

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<v Speaker 4>I think what are they trying to get from that?

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<v Speaker 4>They're probably going to use hostages as human shields. So

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<v Speaker 4>every place that they think the Israelis are likely to

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<v Speaker 4>strike and are striking right now, there may be a hostage. Unfortunately,

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<v Speaker 4>in those locations they're going to use them for bargaining tools.

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<v Speaker 4>They've already announced that they're going to start executing a

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<v Speaker 4>hostage every hour on the hour. That would put a

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<v Speaker 4>lot of pressure on Israel to mitigate what is coming,

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<v Speaker 4>which is likely a ground invasion into Gaza. They're going

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<v Speaker 4>to use them to try to recover their own that

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<v Speaker 4>are held inside Israel Hamas prisoners, for example, to try

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<v Speaker 4>to recover them. They're going to use them. Unfortunately, all

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<v Speaker 4>against the law of armed conflict in every international protocol.

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<v Speaker 4>Most of them are civilians, but obviously Hamas does not

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<v Speaker 4>care about that.

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<v Speaker 5>Nick.

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<v Speaker 3>I do wonder what you see as the biggest concern

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<v Speaker 3>and risk for the world right now as we watch this.

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<v Speaker 3>It's very easy, I think sometimes unfortunately for folks who

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<v Speaker 3>are not in it. We just talked with our Ethan Brawner,

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<v Speaker 3>who is in Tel Aviv. He's our Israel Bureau chief

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<v Speaker 3>and so is hearing it, seeing it firsthand. But the

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<v Speaker 3>world has to be concerned about increasingly all of these

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<v Speaker 3>geopolitical events, whether it's Ukraine or what's going on in

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<v Speaker 3>Israel right now, what do you see is the biggest

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<v Speaker 3>risk right now?

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<v Speaker 4>So I think the biggest risk regarding this conflict is

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<v Speaker 4>that Iran decides to engage all of its proxies to

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<v Speaker 4>come at every different angle into Israel. So if they

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<v Speaker 4>initiate Lebanese Heslo for example, or they just initiate themselves,

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<v Speaker 4>they have about one hundred and fifty thousand rockets and

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<v Speaker 4>missiles that they could launch into Israel, which would overwhelm

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<v Speaker 4>any system, any air defense system, including the Iron Dobe.

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<v Speaker 4>And they also have militias in Syria. So if this happened,

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<v Speaker 4>I think that the United States would become more and

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<v Speaker 4>more likely to get directly involved militarily as it could

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<v Speaker 4>overwhelm the IDEA and the security services in Israel, and

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<v Speaker 4>that could lead to a much broader regional war, potentially

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<v Speaker 4>bring in or on directly, and that of course would

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<v Speaker 4>be another war in the Middle East, and this one

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<v Speaker 4>very substantial. We'll talk about that on top of what's

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<v Speaker 4>happening right now.

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<v Speaker 2>Yeah, talk about that a little bit. In the US's

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<v Speaker 2>involvement and what you and your opinion think that the

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<v Speaker 2>US should actually do not just to rescue the Americans

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<v Speaker 2>who've been held hostage, but also to make sure that parties,

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<v Speaker 2>whoever they are at this point, are held accountable for

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<v Speaker 2>what happened on Saturday and what continues to happen in Israel.

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<v Speaker 4>So militarily, the Pentagon announced the deployment of an aircraft

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<v Speaker 4>carrier strike group, so the General Low Board Strike Group.

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<v Speaker 4>That's one aircraft perria, two destroyers and two cruisers. It's substantial,

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<v Speaker 4>and it's going to be parked off of Israel. Quite frankly,

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<v Speaker 4>that is both a deterrence so that if any other

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<v Speaker 4>country decide might be thinking about jumping into this, they

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<v Speaker 4>have to consider that presence right there, which is an

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<v Speaker 4>incredible amount of military capability. The second thing that I

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<v Speaker 4>think the United States is already doing. We keep pre

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<v Speaker 4>planned munitions pre staged in Israel for our own purposes. Israel,

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<v Speaker 4>I believe, has already asked you to be able to

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<v Speaker 4>get access to that, and I think we're going to

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<v Speaker 4>do that. That's a lot of ammunition that they can

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<v Speaker 4>use in their grind offensive at a time when ammunition

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<v Speaker 4>and weapons are in a shortage all around the world life,

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<v Speaker 4>mostly from the Ukraine conflict. And the third is I

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<v Speaker 4>think helped them with intelligence. Obviously that's been an issue,

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<v Speaker 4>but they need intelligence to be able to accurately plan

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<v Speaker 4>their upcoming ground invasion, and I think the United States

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<v Speaker 4>can do that all before becoming directly involved. That is

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<v Speaker 4>likely where the United States is right now.

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<v Speaker 3>Your Lobo Institute, it's all about conflicts, current future otherwise.

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<v Speaker 3>And you advise clients about this and consult on this

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<v Speaker 3>specifically at a time when we still have a war

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<v Speaker 3>in Ukraine and now we have this, what's the message

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<v Speaker 3>to global companies to governments about security issues international security

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<v Speaker 3>issues at a time like today And just got about

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<v Speaker 3>a minute unfortunately.

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<v Speaker 4>Yeah, slowly understand. So thanks for bringing up Logo Institute.

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<v Speaker 4>It is a group of people not only that we're

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<v Speaker 4>in the agency and the military, but also in the

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<v Speaker 4>UN for example USAID. So it really covers the gamut

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<v Speaker 4>of both your military types and your essentially humanitarian types.

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<v Speaker 4>And that is really what the message is of Lobo

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<v Speaker 4>Institute is that it is not just one tool to

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<v Speaker 4>help in conflicts, it's a multiple tools tools. For example,

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<v Speaker 4>if the economic conditions in some countries don't improve then

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<v Speaker 4>we're always going to have a terrorist issue from that country.

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<v Speaker 4>It's just as a matter of fact. So that's what

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<v Speaker 4>we focus on. We work for the UN we work

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<v Speaker 4>for the US State Department. In areas where it's seemingly endless,

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<v Speaker 4>wars continue to happen, and unfortunately wars continue to be started.

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<v Speaker 3>All right, Going to leave it on that note, Thank

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<v Speaker 3>you so much. We so appreciate your insight on this

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<v Speaker 3>difficult day and just trying to make some sense out

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<v Speaker 3>of it, certainly for all of the Bloomberg audiences that

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<v Speaker 3>are out there. Mick Mulury, thank you so much. On

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<v Speaker 3>zoom from Montana. He's co founder of the Lobo Institute.

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<v Speaker 3>He's also former deput Assistant Secretary of Defense and a

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<v Speaker 3>retired CIA officer, and so much more so, incredible insight

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<v Speaker 3>and perspective on this.

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<v Speaker 1>You're listening to the Bloomberg Business Week podcast. Catch us

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<v Speaker 3>US for Long with Tim Stenovic. Life here on Bloomberg

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<v Speaker 3>Business Week, our coverage of the Hamas Israel conflict continues

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<v Speaker 3>to be fair. Conflict feels like an easy word. Hamas

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<v Speaker 3>really attacking Israel over the weekend Saturday surprise attack on

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<v Speaker 3>Israel by the Palestinian Group may represent one of the

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<v Speaker 3>biggest failures by Israeli intelligence since the Yam Kapor War

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<v Speaker 3>of nineteen seventy three. We've been talking about this. The

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<v Speaker 3>attack involved dozens of infiltrations by land and sea, together

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<v Speaker 3>with rocket attacks. A sophisticated assault, but as we just

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<v Speaker 3>talked about, you know that it was also in some ways,

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<v Speaker 3>you know, very basic in terms of gliders, right, all

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<v Speaker 3>those bulldozers, like. It wasn't necessarily technologically sophisticated, but nonetheless

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<v Speaker 3>it was rather broad and it definitely took some kind

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<v Speaker 3>of planning to get into it.

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<v Speaker 2>And it's certainly one that intelligence agencies missed and they

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<v Speaker 2>were supposed to pick up on. That's a bigger conversation

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<v Speaker 2>for now, though. Let's get to doctor Ariel Cohen, a

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<v Speaker 2>non resident Senior Fellow at the Atlantic Council's Eurasia Center,

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<v Speaker 2>also a member of the Council of Foreign Relations. He's

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<v Speaker 2>also a consultant where he works with companies, NGOs and

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<v Speaker 2>governments on international security, oil and gas strategy. He's got

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<v Speaker 2>a client list that includes Fortune five hundred companies, as

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<v Speaker 2>well as USAID, the World Bank, the Pentagon, and the

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<v Speaker 2>US Senate. He's also been in the Israeli Defense Forces.

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<v Speaker 2>He served in the IDF, Israel's national military. Very pleased

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<v Speaker 2>to have you join us, doctor Cohen, this afternoon. How

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<v Speaker 2>are you.

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<v Speaker 5>I'm very worried. Families cold up in reserves, friends of

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<v Speaker 5>friends being killed, and the horrible pictures of close to

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<v Speaker 5>a thousand Israeli's Jews, Arabs, Muslims, Christians killed. Also, people

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<v Speaker 5>from Nepal, people from Thailand murdered in cold blood, children

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<v Speaker 5>taking hostage to Gaza, eighty five year olds in Wiltshire killed,

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<v Speaker 5>parents executed in front of their children. Horrible, horrible images.

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<v Speaker 3>So how does this happen? And how does Israeli intelligence,

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<v Speaker 3>which is considered top among the world, how does it fail?

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<v Speaker 5>Israel right now is in a response mode into Gaza

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<v Speaker 5>and very concerned about possible escalations in the West Bank, Judean,

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<v Speaker 5>Samaria and Lebanon, where Chrisballa, the fully owned subsidiary of Iran,

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<v Speaker 5>is aiming tens of thousands of more powerful rockets than

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<v Speaker 5>those from Gaza on hyper Tel Aviv and other cities.

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<v Speaker 5>And the accounting for this failure is going to come,

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<v Speaker 5>but it's probably going to come later on after the

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<v Speaker 5>shooting stops in the meantime. Yes, you're absolutely right. It's

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<v Speaker 5>an intelligence failure of historic proportions like the Young Keeper War,

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<v Speaker 5>or worse because during the war Young Keeper War, it

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<v Speaker 5>was soldiers who were killed. It was armies who clashed,

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<v Speaker 5>not peaceful villagers and attendeeeds of a raid in the

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<v Speaker 5>desert who were surrounded and murdered. Two hundred and sixty

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<v Speaker 5>people were killed in a raide young people. So in

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<v Speaker 5>that respect it's worse. The accounting, probably the judiciary inquiry

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<v Speaker 5>commission like the Grand Commission of nineteen seventy four, is

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<v Speaker 5>probably going to happen. I cannot imagine Prime Minister Natanyao,

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<v Speaker 5>Defense Minister Yov Gallant de Mosad director, the Shinbet Security

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<v Speaker 5>Service director, the Chief of Intelligence for the Army and

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<v Speaker 5>the Chief for the Army to keep their jobs.

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<v Speaker 2>Wow, that's a long list of people, doctor Cohen, As

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<v Speaker 2>we just heard a few minutes ago from our own

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<v Speaker 2>Charlie Pellett Bloomberg headline crossing that said Delta Airlines will

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<v Speaker 2>cancel its flights to and from Tel Aviv through October thirty. First, certainly,

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<v Speaker 2>Delta Airlines thinks the conflict is going to last until

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<v Speaker 2>at least the end of the month, when they're going

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<v Speaker 2>to revisit whether they do flights there. How do you

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<v Speaker 2>see this playing out?

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<v Speaker 5>Well, First of all, this concerns me because my daughter

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<v Speaker 5>and her husband are supposed to fly back to Israel

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<v Speaker 5>this week on Delta. My daughter runs Cyberwell and online

0:13:38.720 --> 0:13:44.760
<v Speaker 5>organization that fights anti Semitism in social media. Would she

0:13:44.840 --> 0:13:47.760
<v Speaker 5>have returned, No, she's in the States right now.

0:13:47.800 --> 0:13:49.960
<v Speaker 2>But would she have returned on her ticket if it

0:13:50.000 --> 0:13:50.640
<v Speaker 2>was available?

0:13:50.720 --> 0:13:55.079
<v Speaker 5>Oh? Yeah, absolutely. She has a crew of colleagues to run,

0:13:55.520 --> 0:14:00.959
<v Speaker 5>she's the CEO of this nonprofit, and she would go back.

0:14:01.360 --> 0:14:06.960
<v Speaker 5>Possibly should be called up because she served in the

0:14:07.040 --> 0:14:07.959
<v Speaker 5>idea as well.

0:14:08.000 --> 0:14:09.880
<v Speaker 2>We should note that we should note I just want

0:14:09.880 --> 0:14:12.120
<v Speaker 2>to jump in. We should note that Lal, the flag

0:14:12.400 --> 0:14:15.560
<v Speaker 2>carrier for Israel, the nation's carrier, has increased the number

0:14:15.559 --> 0:14:19.120
<v Speaker 2>of flights to try to bring Israelis back to Israel

0:14:19.240 --> 0:14:20.280
<v Speaker 2>who have been called.

0:14:20.120 --> 0:14:23.680
<v Speaker 5>Up, and Israelis are volunteering to go back from all

0:14:23.720 --> 0:14:28.960
<v Speaker 5>over the world. To save their country. I say saved

0:14:29.200 --> 0:14:38.600
<v Speaker 5>deliberately because the threat, the threat to the cities and

0:14:38.680 --> 0:14:44.080
<v Speaker 5>villages of Israel not just from Gaza, but also from

0:14:44.400 --> 0:14:48.920
<v Speaker 5>Hama's presence in the West Bank, Islamic Jihad, which is

0:14:49.440 --> 0:14:54.280
<v Speaker 5>fully supported and funded by Iran, and from Kibala. This

0:14:54.360 --> 0:14:57.720
<v Speaker 5>is an existential threat. And if it escalates to the

0:14:57.800 --> 0:15:02.000
<v Speaker 5>point where big cities like Hypen in Tel Aviv are

0:15:02.320 --> 0:15:06.960
<v Speaker 5>bombed severely, if there is a threshold the victims of

0:15:07.560 --> 0:15:12.080
<v Speaker 5>killed and wounded, I estimate it roughly around ten thousand.

0:15:12.880 --> 0:15:17.160
<v Speaker 5>If that reaches these numbers, Israel may retaliate up to

0:15:17.240 --> 0:15:20.480
<v Speaker 5>and including unconventional warfare.

0:15:20.120 --> 0:15:22.000
<v Speaker 2>Against ira Do you mean nuclear weapons?

0:15:23.560 --> 0:15:27.720
<v Speaker 5>Unconventional warfare? And by the way, the fact that we

0:15:27.920 --> 0:15:32.000
<v Speaker 5>the United States are moving the carrier battle Group to

0:15:32.080 --> 0:15:36.880
<v Speaker 5>eastern Mediterranean is as strong warning to the Islamic Republic

0:15:36.920 --> 0:15:40.840
<v Speaker 5>and its leaders and to Syria not to escalate. And

0:15:40.880 --> 0:15:43.880
<v Speaker 5>if they don't heed that warning, I do not exclude

0:15:43.960 --> 0:15:47.760
<v Speaker 5>a situation in which the United States and Israel go

0:15:47.840 --> 0:15:50.920
<v Speaker 5>for a joint operation for the first time in history.

0:15:51.400 --> 0:15:56.320
<v Speaker 3>What's the risk for Israel. I'm doing too much, retaliating

0:15:57.000 --> 0:15:59.800
<v Speaker 3>too much, and what's the risk of not doing enough.

0:16:01.480 --> 0:16:07.320
<v Speaker 5>Israel did not retaliate too much for twenty years. Give

0:16:07.360 --> 0:16:11.880
<v Speaker 5>a take since two thousand and seven, when Israel fully

0:16:12.480 --> 0:16:19.080
<v Speaker 5>evacuated Gaza, when Gaza had an airport, a seaport, agriculture,

0:16:19.520 --> 0:16:26.880
<v Speaker 5>and all Israeli settlements were relegated out of Gaza, and

0:16:26.920 --> 0:16:30.800
<v Speaker 5>then kamaskar Is shooting rockets and the blockade on the

0:16:30.840 --> 0:16:36.680
<v Speaker 5>Israeli side with the Egyptian borders still open came into play.

0:16:36.760 --> 0:16:40.280
<v Speaker 5>And even with that, when you look at pictures that

0:16:40.440 --> 0:16:46.280
<v Speaker 5>photographs of Gaza in between these escalations, there were restaurants,

0:16:46.400 --> 0:16:51.800
<v Speaker 5>there were shops opened. They were not starving by any

0:16:51.840 --> 0:16:57.800
<v Speaker 5>stretch of imagination. And deliberate escalation by Kama's leadership led

0:16:58.080 --> 0:17:05.600
<v Speaker 5>to what just happened, including taking people hostage, including many

0:17:05.680 --> 0:17:10.119
<v Speaker 5>many victims on Israeli side, but also there has to

0:17:10.160 --> 0:17:17.480
<v Speaker 5>be unfortunately victims amongst civilian populations when Israel targets and

0:17:17.600 --> 0:17:23.640
<v Speaker 5>hits Kamas command posts, Hamas rocket launchers, et cetera. Now,

0:17:24.240 --> 0:17:28.679
<v Speaker 5>going forward, I think Israel got to a point where

0:17:28.720 --> 0:17:34.320
<v Speaker 5>it will try to destroy the Kamas command structure and

0:17:34.480 --> 0:17:39.320
<v Speaker 5>Palestinian Islamic JIOD command structure. If this will lead to

0:17:39.440 --> 0:17:46.480
<v Speaker 5>the collapse of the Kammas theocratic dictatorship. Don't forget a

0:17:46.560 --> 0:17:51.520
<v Speaker 5>lot of people in Gaza back in the day when

0:17:51.600 --> 0:17:54.920
<v Speaker 5>the last elections happened in two thousand and five, voted

0:17:54.960 --> 0:18:00.320
<v Speaker 5>for Kamas. And now the little public opinion reached search

0:18:00.640 --> 0:18:04.639
<v Speaker 5>that happens indicate that half or more of residents of

0:18:04.720 --> 0:18:08.560
<v Speaker 5>guds And may have had enough with these finacs.

0:18:08.600 --> 0:18:11.240
<v Speaker 3>We were speaking with doctor Eryl Cohen, non Resident Senior

0:18:11.240 --> 0:18:14.080
<v Speaker 3>Fellow at the Atlantic Councils Eurasia Center and a member

0:18:14.080 --> 0:18:17.080
<v Speaker 3>of the Council of Foreign Relations, Good to get his

0:18:17.480 --> 0:18:18.040
<v Speaker 3>thoughts up.

0:18:18.560 --> 0:18:22.120
<v Speaker 1>You're listening to the Bloomberg Business Week podcast. Catch us

0:18:22.160 --> 0:18:26.160
<v Speaker 1>live weekday afternoons from three to six Easter on Bloomberg Radio,

0:18:26.359 --> 0:18:29.639
<v Speaker 1>the Bloomberg Business app and YouTube. You can also listen

0:18:29.760 --> 0:18:32.840
<v Speaker 1>live on Amazon Alexa from our flagship New York station

0:18:33.280 --> 0:18:36.080
<v Speaker 1>just say Alexa playing Bloomberg eleven thirty.

0:18:37.240 --> 0:18:39.520
<v Speaker 3>All right, we do want to go to our next guest,

0:18:39.560 --> 0:18:45.160
<v Speaker 3>because continue to cover the attack in Israel and understand

0:18:45.280 --> 0:18:47.679
<v Speaker 3>the situation at large, if you will, Tim, and we

0:18:47.760 --> 0:18:49.600
<v Speaker 3>keep talking about size and scope, it's something we're all

0:18:49.640 --> 0:18:53.120
<v Speaker 3>about at Bloomberg, but really understanding the significance of what

0:18:53.200 --> 0:18:56.320
<v Speaker 3>happened in surprise attack and what ultimately means longer term.

0:18:56.440 --> 0:18:58.680
<v Speaker 2>Yeah, very pleased to have with us. Danny Danone, a senior

0:18:58.720 --> 0:19:01.320
<v Speaker 2>member of the Kiness set Or Parliament, also sits on

0:19:01.359 --> 0:19:04.800
<v Speaker 2>Israel's Foreign Affairs and Defense Committee, former Deputy Defense Minister,

0:19:05.200 --> 0:19:08.280
<v Speaker 2>former Israeli Ambassador to the UN. He's also a chairman

0:19:08.480 --> 0:19:11.800
<v Speaker 2>of the World Licud party of Prime Minister Benjamin n Yahoo.

0:19:12.080 --> 0:19:14.960
<v Speaker 2>Ambassador denn Is with us from Tel Aviv. Ambassador, good

0:19:14.960 --> 0:19:17.040
<v Speaker 2>to have you with us this afternoon. I think a

0:19:17.119 --> 0:19:20.159
<v Speaker 2>question that so many people are asking is how did

0:19:20.240 --> 0:19:22.240
<v Speaker 2>Israeli security apparatus miss this?

0:19:24.840 --> 0:19:27.320
<v Speaker 6>You know, today we had a very long discussion on

0:19:27.400 --> 0:19:30.800
<v Speaker 6>the fall and a further defense committee exactly about this issue.

0:19:31.280 --> 0:19:32.879
<v Speaker 6>And I think it would take us some time to

0:19:32.880 --> 0:19:36.480
<v Speaker 6>do the popular inquiry. But we can admit and react

0:19:36.480 --> 0:19:39.320
<v Speaker 6>to admit we were caught by surprise, exactly like what

0:19:39.359 --> 0:19:44.040
<v Speaker 6>happened fifty years ago on Young kipul Wo. The always

0:19:44.200 --> 0:19:47.120
<v Speaker 6>took advantage of a Jewish holiday and we were court

0:19:47.520 --> 0:19:51.120
<v Speaker 6>by surprise. But you know, it's more than just a surprise.

0:19:51.680 --> 0:19:55.560
<v Speaker 6>We were not ready for the brutality, for the barbaric

0:19:55.680 --> 0:19:59.760
<v Speaker 6>approach of those militias. You know, when they entered these

0:19:59.760 --> 0:20:03.080
<v Speaker 6>were they didn't attack a military basis. They went to

0:20:03.160 --> 0:20:08.399
<v Speaker 6>peaceful communities on the border, dragged families out of the homes,

0:20:08.560 --> 0:20:11.960
<v Speaker 6>executed them, and dragged a dozen of them into gather.

0:20:12.440 --> 0:20:16.960
<v Speaker 6>And today when we start to count the numbers, it's

0:20:17.080 --> 0:20:20.760
<v Speaker 6>very hard for us. More than one victims in one day.

0:20:21.600 --> 0:20:24.240
<v Speaker 6>We never saw such a twasitive since the date of

0:20:24.280 --> 0:20:28.280
<v Speaker 6>the Holocaust. So for us to see those videos and

0:20:28.400 --> 0:20:35.960
<v Speaker 6>footage of Barbarica terrorists entering homes, taking elderly people and

0:20:36.200 --> 0:20:41.320
<v Speaker 6>kids and committing a massacre, it is very hard for us.

0:20:41.840 --> 0:20:44.400
<v Speaker 6>We feel the pain im it well, all of us,

0:20:44.800 --> 0:20:47.639
<v Speaker 6>but we gather the strength to stand up and to

0:20:47.720 --> 0:20:50.280
<v Speaker 6>fight back, and we would start to fight back in

0:20:50.320 --> 0:20:51.199
<v Speaker 6>the next few days.

0:20:51.359 --> 0:20:54.480
<v Speaker 3>You know, as you say, this is unusual, especially for

0:20:54.520 --> 0:20:58.280
<v Speaker 3>the attack on civilians. Heard ever make sense in a

0:20:58.320 --> 0:21:01.199
<v Speaker 3>situation like this. But how do you think about this

0:21:01.320 --> 0:21:07.040
<v Speaker 3>approach that we saw by Hamas in terms of this attack.

0:21:09.440 --> 0:21:11.840
<v Speaker 6>Well, you know, we shouldn't look for logic when you

0:21:11.880 --> 0:21:15.679
<v Speaker 6>deal with terrorists, same for ninety eleven with al Qaida

0:21:16.040 --> 0:21:19.560
<v Speaker 6>or Isis. You know, it's not the same logic. Way

0:21:19.640 --> 0:21:22.960
<v Speaker 6>we think about goals and moving forward. You know, we

0:21:23.040 --> 0:21:26.080
<v Speaker 6>left Gaza. We left Gaza eighteen years ago. We took

0:21:26.080 --> 0:21:28.600
<v Speaker 6>out all the Jewish communities and we hope that it

0:21:28.640 --> 0:21:31.800
<v Speaker 6>will be a peaceful entity next to us. Then look

0:21:31.840 --> 0:21:35.440
<v Speaker 6>what happened. Hamas took over, kicked out the Palestinal authority

0:21:35.880 --> 0:21:39.080
<v Speaker 6>and it became a hub for terrorism. And all the

0:21:39.119 --> 0:21:44.119
<v Speaker 6>funds that the international community spends on Gaza goes for terrorism,

0:21:44.200 --> 0:21:48.680
<v Speaker 6>for digging tunnels, developing the techniques, and we saw the capabilities.

0:21:49.000 --> 0:21:51.000
<v Speaker 6>You know, they came from the sea, from the Earl,

0:21:51.400 --> 0:21:54.280
<v Speaker 6>from the font tunnels, and the main goal was to

0:21:55.440 --> 0:22:00.600
<v Speaker 6>sow destruction in our communities, chaos. And they think that

0:22:00.680 --> 0:22:03.360
<v Speaker 6>maybe it will sell them, but they will learn very

0:22:03.400 --> 0:22:05.840
<v Speaker 6>soon that it was a great mistake. They will pay

0:22:05.840 --> 0:22:09.040
<v Speaker 6>a heavy price. We will hand them down and I

0:22:09.119 --> 0:22:11.080
<v Speaker 6>think they will fill the might of the idea in

0:22:11.119 --> 0:22:14.280
<v Speaker 6>the near future. And I call the government of it

0:22:14.400 --> 0:22:17.040
<v Speaker 6>well to make a very clear statement that the goal

0:22:17.080 --> 0:22:20.919
<v Speaker 6>of the operation should be to eradicate Hamas period, to

0:22:21.040 --> 0:22:23.600
<v Speaker 6>finish it, not to have another round and then a

0:22:23.680 --> 0:22:26.159
<v Speaker 6>seat fire, because then we will wake up in a

0:22:26.200 --> 0:22:27.879
<v Speaker 6>few years with another attack.

0:22:27.960 --> 0:22:31.359
<v Speaker 2>Mister ambassador, how do you how do you eradicate harmas

0:22:31.440 --> 0:22:33.360
<v Speaker 2>from Gaza.

0:22:33.760 --> 0:22:36.440
<v Speaker 6>Well, first of all, i'm i'm, I have to acknowledge

0:22:36.480 --> 0:22:39.880
<v Speaker 6>it's not going to be an easy task. It would

0:22:39.880 --> 0:22:43.920
<v Speaker 6>require a lot of efforts, but they basically you have

0:22:44.000 --> 0:22:47.560
<v Speaker 6>to conquer the land and to make the distinction between

0:22:47.640 --> 0:22:51.359
<v Speaker 6>the population and the militants. You know, as we speak,

0:22:51.400 --> 0:22:55.679
<v Speaker 6>we're sending messages to certain neighborhood in Gaza calling for

0:22:55.720 --> 0:22:58.320
<v Speaker 6>the residents to move out from those neighborhoods. You know,

0:22:58.400 --> 0:23:01.440
<v Speaker 6>we do not have a desire to toward civilian population.

0:23:01.680 --> 0:23:04.760
<v Speaker 6>Unlike Hamas, they commit a double walk crin the target

0:23:04.840 --> 0:23:08.880
<v Speaker 6>civilians and then they hide behind civilians and they use

0:23:09.000 --> 0:23:10.280
<v Speaker 6>them as human shields.

0:23:10.600 --> 0:23:12.400
<v Speaker 7>We have the exact opposite.

0:23:12.480 --> 0:23:17.399
<v Speaker 6>The goal is to minimize the casualties among civilians and

0:23:17.440 --> 0:23:20.399
<v Speaker 6>we're trying to convince them to move away from the

0:23:20.440 --> 0:23:22.520
<v Speaker 6>strategic Ramas headquarters.

0:23:22.800 --> 0:23:26.520
<v Speaker 3>Ambassador, how do you do this? Though we talked about

0:23:26.680 --> 0:23:31.280
<v Speaker 3>if Iran, although our officials have come out and said

0:23:32.080 --> 0:23:34.840
<v Speaker 3>specifically I'm sorrying about our National Security Council spokesman John

0:23:34.920 --> 0:23:38.479
<v Speaker 3>Kirby talking on MSNBC on CNN saying that they do

0:23:38.640 --> 0:23:41.439
<v Speaker 3>not have any specific intelligence or evidence that points to

0:23:41.920 --> 0:23:46.320
<v Speaker 3>direct participation by Iran in these attacks against Israel. But

0:23:46.480 --> 0:23:51.720
<v Speaker 3>if indeed and Israel moves forward with some deep retaliation,

0:23:52.320 --> 0:23:55.800
<v Speaker 3>and ultimately, if Iran is involved in some way and

0:23:55.840 --> 0:23:59.080
<v Speaker 3>you engage Iran, and then you know, as we heard

0:23:59.080 --> 0:24:01.560
<v Speaker 3>from an earlier guest, to Iran and all of its proxies,

0:24:01.600 --> 0:24:04.119
<v Speaker 3>whether it's Syria, whether it's Lebanon, I mean, how do

0:24:04.160 --> 0:24:07.639
<v Speaker 3>you how do you avoid this not getting out of

0:24:07.760 --> 0:24:10.119
<v Speaker 3>control worse than it is already.

0:24:12.000 --> 0:24:15.080
<v Speaker 6>So w Iran, it's very involved in everything in the region.

0:24:15.160 --> 0:24:22.040
<v Speaker 6>They spend billions on promoting chaos, instability, funding Hamas and

0:24:22.119 --> 0:24:26.840
<v Speaker 6>his Balam and training both proxies, and we know that

0:24:26.880 --> 0:24:30.159
<v Speaker 6>they're very involved. There are some speculation about, you know,

0:24:30.280 --> 0:24:33.960
<v Speaker 6>their desire to block a piece deal between Saudi Arabia

0:24:33.960 --> 0:24:36.639
<v Speaker 6>and Israel, and maybe that's why, because there is no

0:24:36.720 --> 0:24:39.240
<v Speaker 6>reason for the timing. You know, nothing happened. You know,

0:24:39.280 --> 0:24:42.199
<v Speaker 6>it was an unprovoked attack. So maybe one of the

0:24:42.240 --> 0:24:45.520
<v Speaker 6>speculations that they wanted to delay any progress in the

0:24:45.600 --> 0:24:49.479
<v Speaker 6>negotiations with the saudiast But the Iranians should know that

0:24:49.520 --> 0:24:52.480
<v Speaker 6>we are not playing games. If his Ballad will attack us,

0:24:52.840 --> 0:24:55.920
<v Speaker 6>we will retaliate and it will be painful.

0:24:55.960 --> 0:24:59.000
<v Speaker 7>For his Balad and also for the Lebanese people.

0:25:00.080 --> 0:25:03.960
<v Speaker 3>We have seen the Prime Minister Benjamin and Yahou talking

0:25:05.040 --> 0:25:09.080
<v Speaker 3>on via television earlier this evening talking about unifying the party.

0:25:10.720 --> 0:25:16.280
<v Speaker 3>How important is that and how likely is that in

0:25:16.320 --> 0:25:17.200
<v Speaker 3>this environment?

0:25:19.440 --> 0:25:20.959
<v Speaker 7>So I think it's time for unity.

0:25:21.280 --> 0:25:23.720
<v Speaker 6>You know, I think we understand now that we we

0:25:23.800 --> 0:25:28.600
<v Speaker 6>don't have the luxury of arguing on internally domestic issues.

0:25:28.960 --> 0:25:33.320
<v Speaker 6>You know, the enemy of the Haramas that do not

0:25:33.480 --> 0:25:35.919
<v Speaker 6>make the distinction between a coalition and a position.

0:25:36.480 --> 0:25:38.960
<v Speaker 7>And I hope that we will have a unity government soon.

0:25:39.320 --> 0:25:42.240
<v Speaker 3>Is it likely? Is it likely from what you are hearing.

0:25:43.240 --> 0:25:46.880
<v Speaker 6>Yes, I think it's it's moving to that direction. It's

0:25:46.880 --> 0:25:50.760
<v Speaker 6>not going to last forever. But for the time we

0:25:51.119 --> 0:25:54.520
<v Speaker 6>were involved in a war against Ramas, I think it

0:25:54.640 --> 0:25:57.679
<v Speaker 6>can be helpful. You know, the people of Israel, you know,

0:25:57.760 --> 0:26:01.560
<v Speaker 6>we are under a very main your emotional stress in

0:26:01.600 --> 0:26:04.800
<v Speaker 6>the last few days, you know, seeing those footage, knowing

0:26:04.840 --> 0:26:08.480
<v Speaker 6>that today as we speak, you have kids, toddlers, toddlers

0:26:08.520 --> 0:26:11.199
<v Speaker 6>you know, at the age of three years old in

0:26:11.280 --> 0:26:14.040
<v Speaker 6>the hand of Ramas, women that they were raped and

0:26:14.119 --> 0:26:17.960
<v Speaker 6>dragged in together. This is the you know, you know,

0:26:18.040 --> 0:26:20.480
<v Speaker 6>we built a Jewish state in order to protect the

0:26:20.560 --> 0:26:23.600
<v Speaker 6>Jewish people. And we never thought that somebody would come

0:26:23.640 --> 0:26:27.920
<v Speaker 6>into Israel and they commit such a noble a tuasity

0:26:28.000 --> 0:26:29.240
<v Speaker 6>against ussadors.

0:26:30.040 --> 0:26:31.160
<v Speaker 7>The government is the right thing.

0:26:31.440 --> 0:26:31.919
<v Speaker 1>Just see the.

0:26:31.960 --> 0:26:35.159
<v Speaker 2>Last minute that we have with you. How far geographically

0:26:35.440 --> 0:26:37.879
<v Speaker 2>is Israel willing to go to defend itself? Is it

0:26:37.920 --> 0:26:40.240
<v Speaker 2>willing to go to Iran? Is it willing to go

0:26:40.280 --> 0:26:42.199
<v Speaker 2>to the north. Is it willing to go you know,

0:26:42.240 --> 0:26:43.800
<v Speaker 2>we know it's willing to go into Gaza. How far

0:26:43.880 --> 0:26:44.520
<v Speaker 2>is it willing to go?

0:26:44.640 --> 0:26:46.639
<v Speaker 3>And we just have about twenty five thirty seconds.

0:26:46.680 --> 0:26:51.160
<v Speaker 6>Please, we don't have a desire to expand the wall.

0:26:51.440 --> 0:26:55.160
<v Speaker 6>We focus on the wall against Ramas period. But if

0:26:55.200 --> 0:26:57.639
<v Speaker 6>we don't have a choice, we will go anywhere around

0:26:57.640 --> 0:26:59.240
<v Speaker 6>the world to protect ourselves.

0:26:59.480 --> 0:27:01.680
<v Speaker 3>All right, We're leave it at that note. Be well

0:27:01.680 --> 0:27:05.840
<v Speaker 3>and be safe. Danny Dnone, senior member of the Kanesset Parliament,

0:27:06.080 --> 0:27:09.280
<v Speaker 3>sitting on Israel's Foreign Affairs and Defense Committee, former Deputy

0:27:09.280 --> 0:27:13.119
<v Speaker 3>Defense Minister, former Israeli Ambassador to the UN, Chairman of

0:27:13.160 --> 0:27:15.760
<v Speaker 3>the World the coup party of course of the Prime Minister,

0:27:16.320 --> 0:27:19.479
<v Speaker 3>and he of course was joining us from Tel Aviv.

0:27:19.800 --> 0:27:23.359
<v Speaker 1>You're listening to the Bloomberg Business Week podcast. Catch us

0:27:23.400 --> 0:27:26.760
<v Speaker 1>live weekday afternoons from three to six Eastern Listen on

0:27:26.800 --> 0:27:30.840
<v Speaker 1>Bloomberg dot com, the iHeartRadio app, and the Bloomberg Business app,

0:27:31.119 --> 0:27:32.800
<v Speaker 1>or watch us live on YouTube.

0:27:34.080 --> 0:27:37.040
<v Speaker 3>We're going to continue on with that surprise Hamas attack

0:27:37.119 --> 0:27:39.320
<v Speaker 3>on Israel. One of the big questions what Iran knew?

0:27:39.400 --> 0:27:42.879
<v Speaker 3>What will be the geopolitical responses and alliances as a

0:27:42.920 --> 0:27:46.240
<v Speaker 3>result of the attack. As for Iran, Aaron may have

0:27:46.280 --> 0:27:49.639
<v Speaker 3>known about the deadly attacks by Hamas militants, although a

0:27:49.760 --> 0:27:53.040
<v Speaker 3>US official coming out on various cable channels and saying

0:27:53.400 --> 0:27:56.159
<v Speaker 3>at this point intelligence is saying no, they did not

0:27:56.320 --> 0:28:00.399
<v Speaker 3>know anything about this attack. So let's get into it.

0:28:00.480 --> 0:28:06.560
<v Speaker 3>Because Prime Minister Benjamin NETANYAHUO of Israel says We're going

0:28:06.600 --> 0:28:09.800
<v Speaker 3>to change the Middle East in a big way, and

0:28:09.840 --> 0:28:11.720
<v Speaker 3>you do wonder about how things are going forward.

0:28:11.840 --> 0:28:14.360
<v Speaker 2>We've got a couple of great guests with us this afternoon,

0:28:14.359 --> 0:28:19.320
<v Speaker 2>Major General retired Maston Robinson, a geopolitical and intelligence advisor

0:28:19.480 --> 0:28:23.840
<v Speaker 2>at Academy Securities. Also with us. We have Academy Securities

0:28:23.880 --> 0:28:27.040
<v Speaker 2>Director and head of macro Strategy, Peter Cheer joining us

0:28:27.040 --> 0:28:30.320
<v Speaker 2>this afternoon. I want to start with you, Major General,

0:28:30.440 --> 0:28:34.280
<v Speaker 2>really appreciate you taking the time. What do you think

0:28:34.320 --> 0:28:37.919
<v Speaker 2>when you hear Benjamin Netanya who say that we are

0:28:37.920 --> 0:28:39.160
<v Speaker 2>going to change the Middle East.

0:28:40.840 --> 0:28:44.560
<v Speaker 8>Yeah, he wants to send a loud, resounding message to

0:28:44.600 --> 0:28:48.440
<v Speaker 8>his people that this won't be tolerated and the time

0:28:48.520 --> 0:28:50.880
<v Speaker 8>has come to take the gloves off, and Hamas will

0:28:50.880 --> 0:28:55.080
<v Speaker 8>pay a heavy, heavy price. That's the easy part. The

0:28:55.120 --> 0:28:59.040
<v Speaker 8>hard part is does a saucer draw in Lebanese tsbla's

0:28:59.080 --> 0:29:02.640
<v Speaker 8>growing siri on the rons has drawing even Russian support.

0:29:03.040 --> 0:29:06.240
<v Speaker 8>That'll be the capitalist It's really unknown right now. But

0:29:06.640 --> 0:29:10.560
<v Speaker 8>I think the embarrassment that Israel is feeling right now,

0:29:10.720 --> 0:29:15.800
<v Speaker 8>having been surprised and the population having put their complete

0:29:15.840 --> 0:29:18.920
<v Speaker 8>trust in both the advanced warning and the security architecture

0:29:19.040 --> 0:29:23.920
<v Speaker 8>they're used to, the Prime ministers has got to do

0:29:24.000 --> 0:29:28.720
<v Speaker 8>something significant enough to regain that confidence and to establish

0:29:28.840 --> 0:29:33.280
<v Speaker 8>to the rest of the Middle East Israel is not

0:29:33.360 --> 0:29:35.760
<v Speaker 8>to be trumphed for it. It's the only way they'll survive.

0:29:36.880 --> 0:29:39.520
<v Speaker 2>You make me think, Major General, of my conversation that

0:29:39.560 --> 0:29:42.480
<v Speaker 2>Carol and I just had with Ambassador Danny Denone, I

0:29:42.520 --> 0:29:44.440
<v Speaker 2>asked him, I posed that question to him, how far

0:29:44.520 --> 0:29:47.560
<v Speaker 2>geographically is Israel willing to go to defend its borders.

0:29:47.600 --> 0:29:50.160
<v Speaker 2>Is it going to go attack has Belaw? Is it

0:29:50.760 --> 0:29:53.880
<v Speaker 2>going to go attack Iran? Is it going to go

0:29:54.000 --> 0:29:58.240
<v Speaker 2>beyond Hamas and Gaza? And he told us Carol, he

0:29:58.280 --> 0:30:00.840
<v Speaker 2>told us, right now, we are folks on Hamas and

0:30:00.880 --> 0:30:03.360
<v Speaker 2>eradicating Hamas, but we will go as far as we

0:30:03.360 --> 0:30:05.479
<v Speaker 2>need to go around the world in order to protect Israel.

0:30:06.840 --> 0:30:09.520
<v Speaker 8>Yeah, and I certainly wouldn't want to start speculating that

0:30:09.560 --> 0:30:13.120
<v Speaker 8>they're going to go further than Hamas. But if you

0:30:14.240 --> 0:30:19.400
<v Speaker 8>Israel is always believed, right, wrong or indifferent that virtually

0:30:19.600 --> 0:30:24.840
<v Speaker 8>every country within you know, five hundred miles is part

0:30:24.880 --> 0:30:29.400
<v Speaker 8>of their enemy, I don't think that's realistically true today.

0:30:29.560 --> 0:30:33.160
<v Speaker 8>I think that there's some strong, you know, possibility of

0:30:33.400 --> 0:30:37.160
<v Speaker 8>relationships that they're going to want to not unravel if

0:30:37.200 --> 0:30:40.000
<v Speaker 8>they can keep from doing so. And keep in mind

0:30:40.040 --> 0:30:42.600
<v Speaker 8>that that there are a number of Middle East countries

0:30:42.720 --> 0:30:46.760
<v Speaker 8>are still under the accords, that the Abraham Cords that

0:30:46.800 --> 0:30:49.760
<v Speaker 8>they're still held to. So you would think that they

0:30:50.240 --> 0:30:56.120
<v Speaker 8>in this particular case, that Saudi and Jordan and u

0:30:56.120 --> 0:31:00.320
<v Speaker 8>A and that they would sit this out. But there's

0:31:00.320 --> 0:31:05.560
<v Speaker 8>no guarantee that it's hard to believe that Hamas planned

0:31:05.560 --> 0:31:10.960
<v Speaker 8>this and execute to something discomplicated all by itself. No

0:31:11.120 --> 0:31:15.800
<v Speaker 8>proof yet that Iran was involved, but they they certainly

0:31:15.840 --> 0:31:20.280
<v Speaker 8>would would not surprise anybody if Iran or Heswela were

0:31:20.320 --> 0:31:22.400
<v Speaker 8>involved at least in the plan. And of course if

0:31:22.400 --> 0:31:25.200
<v Speaker 8>Hesbelog gets involved, they got at least the two if

0:31:25.200 --> 0:31:28.040
<v Speaker 8>another three front rule, or that Israel was doing.

0:31:27.800 --> 0:31:29.600
<v Speaker 3>It, and that's what we're all worried about. And that

0:31:29.680 --> 0:31:31.880
<v Speaker 3>certainly was one of the concerns, I would say earlier

0:31:31.920 --> 0:31:33.760
<v Speaker 3>in the day in the financial markets here in the

0:31:33.880 --> 0:31:36.640
<v Speaker 3>United States, Peter Kamanian on this. You're head of macro

0:31:36.680 --> 0:31:40.000
<v Speaker 3>strategy over at Academy Securities. You know, geopolitics, I don't

0:31:40.040 --> 0:31:42.600
<v Speaker 3>have to tell you has lots of market implications short

0:31:43.000 --> 0:31:45.560
<v Speaker 3>and then sometimes longer term. We saw play out and

0:31:45.560 --> 0:31:47.840
<v Speaker 3>oil prices a little bit of a flight to safety.

0:31:48.000 --> 0:31:51.840
<v Speaker 3>Defense docks here in the US. Airlines are under pressure.

0:31:52.440 --> 0:31:55.680
<v Speaker 3>We definitely saw it play out today. Energy names on

0:31:55.720 --> 0:31:59.120
<v Speaker 3>the equity side of things, certainly rallying. What are you

0:31:59.240 --> 0:32:01.760
<v Speaker 3>keeping an eye on? What are you telling clients? What

0:32:01.840 --> 0:32:02.719
<v Speaker 3>are you being asked?

0:32:03.760 --> 0:32:05.760
<v Speaker 9>You know, I think about all of the above. I

0:32:05.760 --> 0:32:07.880
<v Speaker 9>guess I would say we kind of start what seems

0:32:07.920 --> 0:32:10.240
<v Speaker 9>most obvious, like oil should continue to go higher. With

0:32:10.320 --> 0:32:12.959
<v Speaker 9>this right, there is a threat to oil supply chains,

0:32:13.800 --> 0:32:16.320
<v Speaker 9>so I see oil going higher as one thing. I

0:32:16.360 --> 0:32:18.200
<v Speaker 9>also think rates are going to go lower though, So

0:32:18.400 --> 0:32:21.760
<v Speaker 9>despite higher oil, yes, that would seem inflationary, the Fed's

0:32:21.760 --> 0:32:23.360
<v Speaker 9>not going to worry about that, the markets aren't going

0:32:23.400 --> 0:32:25.560
<v Speaker 9>to worry about that. You have a flight to safety.

0:32:25.600 --> 0:32:28.800
<v Speaker 9>So you're seeing rates go lower. The Feds folk today

0:32:28.840 --> 0:32:31.000
<v Speaker 9>and actually kind of already fell into the camp that

0:32:31.000 --> 0:32:33.440
<v Speaker 9>I think we've been saying before this occurred, no more

0:32:33.520 --> 0:32:36.680
<v Speaker 9>hikes this year. So that helped equities, and I think

0:32:36.680 --> 0:32:39.200
<v Speaker 9>equities are kind of the wildcard. Do they follow the

0:32:39.280 --> 0:32:41.600
<v Speaker 9>bad news as good because yields are lower, or do

0:32:41.600 --> 0:32:43.400
<v Speaker 9>they start getting worried about what this means for the

0:32:43.400 --> 0:32:46.200
<v Speaker 9>global economy. All of a sudden, you have the US

0:32:46.240 --> 0:32:49.760
<v Speaker 9>potentially helping allies on two fronts. What does it mean

0:32:49.800 --> 0:32:52.000
<v Speaker 9>for the rest of the world. So I think equities

0:32:52.000 --> 0:32:54.320
<v Speaker 9>are really the wildcard. They responded nicely to day to

0:32:54.360 --> 0:32:56.959
<v Speaker 9>lower yields. I think that might continue, but I'd want

0:32:56.960 --> 0:32:58.920
<v Speaker 9>to pair back risk if this is going to escalate.

0:32:59.120 --> 0:33:01.360
<v Speaker 3>Hey, Peter, if I may follow with you, you know, how

0:33:01.360 --> 0:33:04.959
<v Speaker 3>does this complicate maybe the Fed's world two more meetings

0:33:05.000 --> 0:33:09.200
<v Speaker 3>November one, December thirteenth. We get FOMC minutes this week

0:33:09.320 --> 0:33:11.840
<v Speaker 3>from the most recent meeting, we get reads on inflation.

0:33:12.360 --> 0:33:15.960
<v Speaker 3>But how does potentially and again where three? It looks

0:33:15.960 --> 0:33:18.360
<v Speaker 3>like starting on a four days in terms of the

0:33:18.400 --> 0:33:21.160
<v Speaker 3>attack on Israel, and we don't know what's going to

0:33:21.200 --> 0:33:22.880
<v Speaker 3>happen the rest of the week or how long this

0:33:22.920 --> 0:33:26.120
<v Speaker 3>goes on. But how does this potentially complicate the FED

0:33:26.200 --> 0:33:29.520
<v Speaker 3>thinking about monetary policy and maybe looking to ease conditions

0:33:29.560 --> 0:33:31.040
<v Speaker 3>a little bit? Although the market has done a lot

0:33:31.080 --> 0:33:32.840
<v Speaker 3>of the Fed's work as of late.

0:33:34.120 --> 0:33:37.080
<v Speaker 9>Yeah, I think the FED has been and they do

0:33:37.120 --> 0:33:38.760
<v Speaker 9>not want to do anything. So I think they've been

0:33:38.760 --> 0:33:41.120
<v Speaker 9>looking for the data to give them excuses to do nothing,

0:33:41.360 --> 0:33:43.640
<v Speaker 9>and unfortunately this probably gives them the excuse to do nothing.

0:33:43.640 --> 0:33:45.680
<v Speaker 9>They are certainly not going to hike in the face

0:33:45.720 --> 0:33:48.920
<v Speaker 9>of this frustration. People might talk about oil prices going higher,

0:33:48.960 --> 0:33:51.120
<v Speaker 9>they will ignore that right, they will view it as transitory.

0:33:51.120 --> 0:33:54.680
<v Speaker 9>It's something beyond their control, so they won't ease anytime soon.

0:33:54.880 --> 0:33:57.840
<v Speaker 9>But I think this takes any hike conversations off the

0:33:57.880 --> 0:33:58.520
<v Speaker 9>table for now.

0:34:00.080 --> 0:34:02.160
<v Speaker 2>General I want to bring you back into the conversation

0:34:02.640 --> 0:34:05.760
<v Speaker 2>and I'll ask you about the US's role here and

0:34:05.800 --> 0:34:08.359
<v Speaker 2>to what extent you think that the US should get

0:34:08.360 --> 0:34:12.480
<v Speaker 2>involved beyond sending a carrier and a group of ships

0:34:12.560 --> 0:34:16.600
<v Speaker 2>on its way from the Mediterranean. Right now, Look, Americans

0:34:16.600 --> 0:34:21.720
<v Speaker 2>have been killed. We have reason to believe per Hamas

0:34:21.760 --> 0:34:24.480
<v Speaker 2>that Americans have been captured. That's what we heard from

0:34:24.520 --> 0:34:27.479
<v Speaker 2>our Washington d C reporter just a few minutes ago.

0:34:28.880 --> 0:34:30.239
<v Speaker 2>What should the US involvement be?

0:34:31.560 --> 0:34:33.160
<v Speaker 8>Yeah, I don't things see doubt the US will be

0:34:33.200 --> 0:34:41.560
<v Speaker 8>involved when because of munitions and comes to naval activity, collection, architecture, jets.

0:34:41.120 --> 0:34:41.200
<v Speaker 9>But.

0:34:43.040 --> 0:34:47.160
<v Speaker 8>Keep Mount Israel is extraordinarily well equipped. The question is

0:34:47.200 --> 0:34:50.920
<v Speaker 8>how long the war goes, how deep their munitions supply,

0:34:51.080 --> 0:34:54.040
<v Speaker 8>said is and we would certainly help them with that.

0:34:54.120 --> 0:34:56.080
<v Speaker 8>And the other piece that I think we could is

0:34:57.320 --> 0:35:00.439
<v Speaker 8>we could certainly work behind the scenes with the other

0:35:01.200 --> 0:35:04.440
<v Speaker 8>Gulf states, like I said, Audi Arabia to try to

0:35:04.480 --> 0:35:08.080
<v Speaker 8>facilitate a more neutral status with them, or even a

0:35:08.120 --> 0:35:11.719
<v Speaker 8>diplomatic status with them, to try to bring this to

0:35:11.800 --> 0:35:14.520
<v Speaker 8>a closure on a corporate pace. But we'd have to

0:35:14.520 --> 0:35:15.840
<v Speaker 8>give something up to do that.

0:35:17.680 --> 0:35:19.360
<v Speaker 2>Well, that's why I think this was so surprising to

0:35:19.400 --> 0:35:21.440
<v Speaker 2>so many people, Major General, is that anyone who's been

0:35:21.440 --> 0:35:24.440
<v Speaker 2>to Israel understands the might of the Israeli military. You

0:35:24.480 --> 0:35:27.040
<v Speaker 2>can't go anywhere in the country without seeing members of

0:35:27.040 --> 0:35:31.719
<v Speaker 2>the IDF CAROL carrying automatic weapons at bus stations. It's

0:35:31.719 --> 0:35:34.879
<v Speaker 2>a normal, everyday thing. That's why it's so surprising that

0:35:35.000 --> 0:35:37.680
<v Speaker 2>Hamas militants were able to get so far, so quickly,

0:35:37.920 --> 0:35:40.440
<v Speaker 2>and into so many different military bases in such a

0:35:40.440 --> 0:35:41.160
<v Speaker 2>short period of time.

0:35:41.239 --> 0:35:44.319
<v Speaker 3>Which General makes us think about this intelligence failure, how

0:35:44.320 --> 0:35:48.759
<v Speaker 3>are you thinking about that and concerns about what might

0:35:48.800 --> 0:35:51.360
<v Speaker 3>be being missed currently as we speak.

0:35:52.320 --> 0:35:56.320
<v Speaker 8>Yeah, so absolutely, the intelligence failure and the security architecture's

0:35:56.360 --> 0:36:00.439
<v Speaker 8>response was a failure. But just like in America, when

0:36:00.520 --> 0:36:05.000
<v Speaker 8>something catastrophic happens, no matter how bad the failure was,

0:36:05.239 --> 0:36:08.320
<v Speaker 8>it has a bonding effect. It brings the country together.

0:36:08.960 --> 0:36:11.960
<v Speaker 8>So I don't think you're going to see Israelis that

0:36:12.000 --> 0:36:16.080
<v Speaker 8>are throwing potshots at the government. They're saying I would survive.

0:36:16.440 --> 0:36:18.800
<v Speaker 8>What do I need to do? And that's the beauty

0:36:18.800 --> 0:36:23.000
<v Speaker 8>of Israel Is every single person in that country considers

0:36:23.040 --> 0:36:25.839
<v Speaker 8>them part of the security architecture, and they are all

0:36:25.880 --> 0:36:29.000
<v Speaker 8>going to be whether it's intelligence, whether it's gathering, or

0:36:29.040 --> 0:36:32.919
<v Speaker 8>whether it's manning a weapon or a security station. They're

0:36:32.960 --> 0:36:36.480
<v Speaker 8>going to be all in for survival. In their mind,

0:36:36.600 --> 0:36:41.600
<v Speaker 8>they are surrounded by enemy and they have nothing but

0:36:42.840 --> 0:36:47.160
<v Speaker 8>complete also survival as an end state. If they don't,

0:36:47.800 --> 0:36:49.160
<v Speaker 8>if they can't be successful.

0:36:49.239 --> 0:36:52.439
<v Speaker 3>We've heard the Prime Minister already calling for unification within

0:36:52.520 --> 0:36:55.680
<v Speaker 3>his government. Peter Chier, really quickly, ten seconds, what's top

0:36:55.680 --> 0:36:57.439
<v Speaker 3>of mind for you as we head into a busy

0:36:57.480 --> 0:37:00.000
<v Speaker 3>week for the markets.

0:36:59.120 --> 0:37:01.400
<v Speaker 9>No thing we all have to watch is where this

0:37:01.480 --> 0:37:02.480
<v Speaker 9>head's on social media?

0:37:02.600 --> 0:37:02.719
<v Speaker 1>Right?

0:37:02.760 --> 0:37:05.080
<v Speaker 9>Who wins the kind of social media a war? So

0:37:05.120 --> 0:37:07.040
<v Speaker 9>I think there's going to be an intelligence operation on

0:37:07.080 --> 0:37:09.320
<v Speaker 9>our side. They're going to compat this, and that becomes

0:37:09.320 --> 0:37:13.439
<v Speaker 9>the risk that this escalates into a US versus them

0:37:13.440 --> 0:37:16.359
<v Speaker 9>and it goes beyond just a regional battle, in which

0:37:16.360 --> 0:37:19.120
<v Speaker 9>case then I think yields go much lower, but stocks

0:37:19.160 --> 0:37:20.280
<v Speaker 9>have to fall in that case.

0:37:20.360 --> 0:37:24.480
<v Speaker 3>Peter Cheer and Major General Maston Robson of Academy Securities,

0:37:24.480 --> 0:37:25.600
<v Speaker 3>thank you both so much.

0:37:26.400 --> 0:37:32.520
<v Speaker 9>Bromack a journal how about you let me drive?

0:37:32.800 --> 0:37:38.839
<v Speaker 1>Oh no, no, no, no, alay please, I'll do these.

0:37:38.880 --> 0:37:40.320
<v Speaker 7>Wait, I want to drive.

0:37:42.320 --> 0:37:43.200
<v Speaker 4>It's a good question.

0:37:43.680 --> 0:37:49.920
<v Speaker 1>Good This is good drive to the clothes for me.

0:37:50.120 --> 0:37:53.400
<v Speaker 1>Think well it down on Bluebird Radio.

0:37:53.560 --> 0:37:56.040
<v Speaker 3>All right, everybody, eighteen minutes left to go in the

0:37:56.040 --> 0:37:58.560
<v Speaker 3>first trading session of the week. Of course, it is Monday,

0:37:58.600 --> 0:38:01.880
<v Speaker 3>October ninth, Carol Master Tim Stanovick live here at Bloomberg

0:38:01.880 --> 0:38:04.759
<v Speaker 3>Headquarters in our Bloomberg Interactive Broker Studio on YouTube and

0:38:04.760 --> 0:38:06.840
<v Speaker 3>Bloomberg Originals, and we've got a little bit of a

0:38:06.920 --> 0:38:10.520
<v Speaker 3>rally underway here. Who to thunk considering the news flow

0:38:10.560 --> 0:38:14.160
<v Speaker 3>over the weekend, the attack on Israel Baijamas, and we're

0:38:14.160 --> 0:38:15.880
<v Speaker 3>trying to gauge it. Of course, the bond market is

0:38:15.920 --> 0:38:18.160
<v Speaker 3>closed here in the United States. We have maybe that's

0:38:18.160 --> 0:38:21.279
<v Speaker 3>why have in bid. No, that's a really good point

0:38:21.320 --> 0:38:25.279
<v Speaker 3>because I think before on Friday we teased forward and

0:38:25.360 --> 0:38:28.200
<v Speaker 3>saying it's going to be bank earnings, it's going to

0:38:28.239 --> 0:38:32.480
<v Speaker 3>be inflation reads here in the United States Thursday Fed minutes,

0:38:32.640 --> 0:38:35.440
<v Speaker 3>and yet we're definitely top of mind.

0:38:35.320 --> 0:38:37.279
<v Speaker 2>Something very different at this Maybe the FED speakers we

0:38:37.320 --> 0:38:39.880
<v Speaker 2>heard from today are driving this market. That's certainly what

0:38:39.920 --> 0:38:42.240
<v Speaker 2>it feels like. Let's see what David Deets has to say.

0:38:42.719 --> 0:38:45.080
<v Speaker 2>Our Drive to the closed guest this afternoon, senior portfolio

0:38:45.080 --> 0:38:48.600
<v Speaker 2>strategist at Pepack Private Wealth Management, joining us from a

0:38:48.600 --> 0:38:50.120
<v Speaker 2>summit New Jersey this afternoon.

0:38:50.200 --> 0:38:53.440
<v Speaker 10>David, how are you doing great? Tim, and Carroll's happy

0:38:53.440 --> 0:38:53.880
<v Speaker 10>to be with you.

0:38:54.680 --> 0:38:58.200
<v Speaker 2>Well, thanks for joining us on what we've certainly considered

0:38:58.200 --> 0:39:00.480
<v Speaker 2>a somber day, given everything that we've been talking about

0:39:00.480 --> 0:39:03.239
<v Speaker 2>it for the last hour. We are bloomberg, though, we

0:39:03.280 --> 0:39:06.720
<v Speaker 2>are show focused on markets, and we are just seventeen

0:39:06.719 --> 0:39:10.160
<v Speaker 2>minutes away from the clothes on this kind of holiday

0:39:10.200 --> 0:39:13.200
<v Speaker 2>trading day, I think you could call it. How do

0:39:13.239 --> 0:39:15.280
<v Speaker 2>you explain the turnaround inequities that we saw today?

0:39:16.320 --> 0:39:19.600
<v Speaker 10>Well, certainly there was a knee jerk reaction for safe

0:39:19.600 --> 0:39:21.640
<v Speaker 10>haven buying and all sorts of things like bonds and

0:39:21.719 --> 0:39:24.480
<v Speaker 10>the dollar, and to buy up of course energy out

0:39:24.520 --> 0:39:27.600
<v Speaker 10>of fear of energy supplies. But I think during the

0:39:27.640 --> 0:39:29.640
<v Speaker 10>course of the day you put your finger out at Tim.

0:39:29.680 --> 0:39:33.800
<v Speaker 10>There was some duvish talk from a Federal Reserve officials

0:39:33.840 --> 0:39:36.600
<v Speaker 10>talking about how the bond market has done a lot

0:39:36.640 --> 0:39:40.440
<v Speaker 10>of our workforce and therefore maybe we're best off just

0:39:40.560 --> 0:39:43.440
<v Speaker 10>taking a wait and see attitude. And during the we

0:39:43.480 --> 0:39:46.239
<v Speaker 10>have seen the odds of a rate hike by the

0:39:46.239 --> 0:39:49.040
<v Speaker 10>FED in November, go down just since Friday, So that's

0:39:49.040 --> 0:39:52.080
<v Speaker 10>a big positive. But I think also cooler heads have said,

0:39:52.160 --> 0:39:55.880
<v Speaker 10>you know, what are the possibilities of a huge spike

0:39:56.080 --> 0:39:58.919
<v Speaker 10>in oil because of this? And quite frankly, the world

0:39:58.960 --> 0:40:01.080
<v Speaker 10>today is so much different than it was fifty years

0:40:01.080 --> 0:40:05.800
<v Speaker 10>ago in the yam Kapur war. We are energy sufficient here.

0:40:06.160 --> 0:40:09.080
<v Speaker 10>Palestine and Israel are not big energy produced. This is

0:40:09.120 --> 0:40:09.840
<v Speaker 10>a couple offshore.

0:40:09.960 --> 0:40:12.040
<v Speaker 2>Yeah, but the concern. The concern isn't that, you know,

0:40:12.160 --> 0:40:14.759
<v Speaker 2>we're going to see disruptions from Israel and Palestine. The

0:40:14.760 --> 0:40:17.080
<v Speaker 2>concern is that it'll set off some sort of broader

0:40:17.120 --> 0:40:20.040
<v Speaker 2>conflict and we'll see broader supply destructions within the region

0:40:20.080 --> 0:40:21.880
<v Speaker 2>because the region is a huge oil supplier.

0:40:22.960 --> 0:40:25.919
<v Speaker 10>You are absolutely right, And the real problem is if

0:40:26.520 --> 0:40:30.000
<v Speaker 10>it turns out that Iran was a big supporter or

0:40:30.280 --> 0:40:34.560
<v Speaker 10>somehow helped instigate this attack by Hamas, you know, that

0:40:34.640 --> 0:40:38.759
<v Speaker 10>could reinstitute or cause the United States the reinstitute embargoes

0:40:38.880 --> 0:40:42.759
<v Speaker 10>on their production. It could also halt a thaw in

0:40:42.880 --> 0:40:45.879
<v Speaker 10>relationships that we're seeing between the United States and Saudi Arabia.

0:40:45.960 --> 0:40:49.919
<v Speaker 10>Here is the wildcar, which wildcar could throw everything into

0:40:49.920 --> 0:40:54.200
<v Speaker 10>a tailspin is that Straits of Hormuz. Twenty million barrels

0:40:54.239 --> 0:40:57.640
<v Speaker 10>of oil passed through there regularly. That is the economic

0:40:57.880 --> 0:41:00.640
<v Speaker 10>choke point for the world. If for some and Iran

0:41:00.719 --> 0:41:03.560
<v Speaker 10>where to put a blockade there, all bets are off.

0:41:03.880 --> 0:41:05.759
<v Speaker 10>But that's certainly not the way you want to bet

0:41:05.840 --> 0:41:06.200
<v Speaker 10>right now.

0:41:06.280 --> 0:41:09.160
<v Speaker 3>And energy certainly has been a bet that you have made. David,

0:41:09.640 --> 0:41:12.440
<v Speaker 3>talk to us about how you're looking at it on

0:41:12.440 --> 0:41:13.080
<v Speaker 3>this Monday.

0:41:14.000 --> 0:41:14.200
<v Speaker 5>Yeah.

0:41:14.200 --> 0:41:18.200
<v Speaker 10>Absolutely, So longer term, you know, all the think tanks

0:41:18.239 --> 0:41:22.040
<v Speaker 10>say we are going to be using more oil by

0:41:22.040 --> 0:41:24.439
<v Speaker 10>the end of this decade than we do now. We're

0:41:24.440 --> 0:41:27.160
<v Speaker 10>going to be using more oil by the year twenty fifty.

0:41:27.280 --> 0:41:29.920
<v Speaker 10>So demand is going to continue. There's many areas of

0:41:29.960 --> 0:41:34.000
<v Speaker 10>the world, particularly in Asia, which are not prepared financially

0:41:34.080 --> 0:41:36.840
<v Speaker 10>or otherwise to make a big fast switch to green.

0:41:37.440 --> 0:41:40.800
<v Speaker 10>At the same time, of course, producers are saying, gee,

0:41:40.880 --> 0:41:44.400
<v Speaker 10>you know, we are getting negative vibes from governments and

0:41:44.440 --> 0:41:47.359
<v Speaker 10>policy makers. They don't want us to produce. They're putting

0:41:47.440 --> 0:41:49.640
<v Speaker 10>more and more barriers in the way. We may not

0:41:49.760 --> 0:41:52.200
<v Speaker 10>be able to make a return on investment, and so

0:41:52.280 --> 0:41:55.960
<v Speaker 10>therefore supply is starting to drop. Demand continues. That's a

0:41:55.960 --> 0:41:56.960
<v Speaker 10>recipe for higher prices.

0:41:57.080 --> 0:41:59.160
<v Speaker 3>So wait, so where do you commit money still in

0:41:59.200 --> 0:42:00.319
<v Speaker 3>the energy space.

0:42:01.040 --> 0:42:04.400
<v Speaker 10>Well, stay diversified. But I mean, you know, we can't

0:42:04.400 --> 0:42:08.319
<v Speaker 10>overlook the fact that the largest player publicly trade player

0:42:08.320 --> 0:42:12.000
<v Speaker 10>out or Exon, is making a potentially sixty billion dollar

0:42:12.120 --> 0:42:15.400
<v Speaker 10>bet on another company which has all these resources in

0:42:15.400 --> 0:42:18.560
<v Speaker 10>the permiam. If a company like Exon felt that oil

0:42:18.600 --> 0:42:20.640
<v Speaker 10>didn't have a strong future, why would they do that?

0:42:20.800 --> 0:42:22.720
<v Speaker 10>I think there's another thing at play there.

0:42:23.480 --> 0:42:26.160
<v Speaker 3>And of course you're talking about pioneer natural Resources buy in.

0:42:26.080 --> 0:42:28.520
<v Speaker 10>Their natural resources, and that deal has not been confirmed,

0:42:28.520 --> 0:42:30.279
<v Speaker 10>but it looks like it's well on its way. So

0:42:30.520 --> 0:42:32.960
<v Speaker 10>here's the thing. So what I think is going on

0:42:33.160 --> 0:42:36.960
<v Speaker 10>is coming like Exon saying because of the low equity

0:42:37.040 --> 0:42:39.919
<v Speaker 10>valuations out there, is cheaper to drill, as it were

0:42:40.000 --> 0:42:42.600
<v Speaker 10>on Wall Street than to actually spend money to hire

0:42:42.640 --> 0:42:46.520
<v Speaker 10>people and commit resources in IRL in the real world.

0:42:46.880 --> 0:42:49.560
<v Speaker 10>And therefore I'm taking my queue there and saying, well,

0:42:49.600 --> 0:42:52.000
<v Speaker 10>if a company like Exon thinks is cheaper to buy

0:42:52.760 --> 0:42:55.960
<v Speaker 10>oil companies rather than drill, I think as part of

0:42:55.960 --> 0:42:58.359
<v Speaker 10>a diversified portfolio makes a lot of sense. Plus, if

0:42:58.360 --> 0:43:01.239
<v Speaker 10>you like dividends and you're worried a potential inflation and

0:43:01.280 --> 0:43:04.680
<v Speaker 10>for example, geopolitical risks we saw today, good addition to

0:43:04.680 --> 0:43:05.360
<v Speaker 10>your portfolio.

0:43:05.360 --> 0:43:07.640
<v Speaker 3>What about Chevron, which Israel ordered to shut down of

0:43:07.680 --> 0:43:11.399
<v Speaker 3>a major gas field run by Chevron in the eastern Mediterranean,

0:43:11.480 --> 0:43:14.080
<v Speaker 3>so they were there were some safety concerns as the

0:43:14.080 --> 0:43:20.040
<v Speaker 3>fighting continues on thoughts specifically on Chevron, Yeah.

0:43:19.880 --> 0:43:23.640
<v Speaker 10>We like Chevron. You know, low debt member the dow uh,

0:43:23.920 --> 0:43:27.560
<v Speaker 10>you know, wonderful management under I believe it's mister worth there.

0:43:29.200 --> 0:43:32.920
<v Speaker 10>They are, you know, diversified, globally integrated, so they're in

0:43:32.960 --> 0:43:35.560
<v Speaker 10>all facets. Now, mind you the fact that Israel has

0:43:35.680 --> 0:43:38.319
<v Speaker 10>them to stop work on one of their platforms, that's

0:43:38.400 --> 0:43:40.359
<v Speaker 10>kind of a detail right now, because there's a very

0:43:40.400 --> 0:43:43.160
<v Speaker 10>small part of their overall production in Israel doesn't have

0:43:43.200 --> 0:43:46.759
<v Speaker 10>the capability to cut off a lot of oil. But

0:43:47.680 --> 0:43:49.839
<v Speaker 10>you know that is good. But we also we also

0:43:50.000 --> 0:43:52.400
<v Speaker 10>like Xon. I think for a lot of reasons, people

0:43:52.520 --> 0:43:55.680
<v Speaker 10>have even more skeptical of Exxon. I think the evaluation

0:43:56.360 --> 0:43:59.680
<v Speaker 10>is lower. They're more geographically diversified, and over the long run,

0:43:59.680 --> 0:44:01.359
<v Speaker 10>I would want to bet against Xon either.

0:44:02.480 --> 0:44:05.120
<v Speaker 2>Okay, well, before we let you go, just in the

0:44:05.160 --> 0:44:07.080
<v Speaker 2>last two minutes, that we have with you. I want

0:44:07.080 --> 0:44:09.480
<v Speaker 2>to talk about what's what we have upcoming. We hear

0:44:09.520 --> 0:44:12.240
<v Speaker 2>from some of the big banks already starting this week.

0:44:12.760 --> 0:44:15.799
<v Speaker 2>We got some inflation numbers coming on Thursday, we got

0:44:15.800 --> 0:44:19.600
<v Speaker 2>consumer sentiment on Friday. What's the most important in the

0:44:19.600 --> 0:44:20.560
<v Speaker 2>near term catalyst.

0:44:21.320 --> 0:44:24.759
<v Speaker 10>I think those inflation numbers. The inflation numbers have been

0:44:24.840 --> 0:44:27.720
<v Speaker 10>driving the higher interest rates, in driving the hawker system.

0:44:27.760 --> 0:44:28.120
<v Speaker 5>The FED.

0:44:28.360 --> 0:44:30.319
<v Speaker 10>If we see something that looks like it's getting way

0:44:30.360 --> 0:44:33.560
<v Speaker 10>too hot, I think that puts the marketing to lockdown

0:44:33.600 --> 0:44:35.480
<v Speaker 10>as they worry about what the Fed's reaction is going

0:44:35.520 --> 0:44:37.800
<v Speaker 10>to be. And of course it can work the other around.

0:44:38.160 --> 0:44:41.239
<v Speaker 10>On the earnings, obviously you buy stocks or earnings. The

0:44:41.280 --> 0:44:43.520
<v Speaker 10>problem is Q three earnings are going to be the

0:44:43.560 --> 0:44:46.680
<v Speaker 10>fourth quarter in a row of negative year over year results.

0:44:46.920 --> 0:44:48.480
<v Speaker 10>So you're not going to have a whole lot to

0:44:48.520 --> 0:44:50.719
<v Speaker 10>point to to say, hey, let's go commit a lot

0:44:50.760 --> 0:44:53.799
<v Speaker 10>more money in the market. On the nails, I think

0:44:53.840 --> 0:44:55.560
<v Speaker 10>they're going to be cautious on the outlook. How can

0:44:55.600 --> 0:44:57.680
<v Speaker 10>they not be with all of the bacco issues. On

0:44:57.719 --> 0:45:00.600
<v Speaker 10>the other hand, I think if the bond you'll start

0:45:00.680 --> 0:45:03.000
<v Speaker 10>dropping off. I think that's gonna be your callloser better

0:45:03.000 --> 0:45:03.479
<v Speaker 10>market ahead.

0:45:03.560 --> 0:45:06.000
<v Speaker 3>Do you like Wells Fargo twenty five seconds though? Is

0:45:06.000 --> 0:45:06.480
<v Speaker 3>that correct?

0:45:06.520 --> 0:45:08.719
<v Speaker 10>Yeah? Exactly. Well, they're going to be one of the

0:45:09.000 --> 0:45:11.200
<v Speaker 10>three of the big six that's going to report strong

0:45:11.360 --> 0:45:13.600
<v Speaker 10>year over year results. They're going to be up about

0:45:13.600 --> 0:45:17.880
<v Speaker 10>forty percent versus last year. Also, you know, they're trading

0:45:17.880 --> 0:45:20.880
<v Speaker 10>at about tangible book value, about eight times earnings, and

0:45:20.960 --> 0:45:24.200
<v Speaker 10>they have potential because they're cutting costs. They have to

0:45:24.360 --> 0:45:27.640
<v Speaker 10>because of scandals in the past, and I think ultimately

0:45:27.920 --> 0:45:30.480
<v Speaker 10>the Center Reserve will allow them to take the asset

0:45:30.520 --> 0:45:33.440
<v Speaker 10>cap off, which will allow them to grow. They're sticking

0:45:33.480 --> 0:45:35.960
<v Speaker 10>with the domestic focus. They're number one or number two

0:45:35.960 --> 0:45:38.200
<v Speaker 10>in all their markets. Then you know, when times they're tough,

0:45:38.239 --> 0:45:39.399
<v Speaker 10>you want to go with the big guys.

0:45:39.480 --> 0:45:41.880
<v Speaker 3>City Group, JP Morgan, and Wells Farg are all reporting

0:45:41.880 --> 0:45:43.680
<v Speaker 3>on Friday the thirteenth, saying.

0:45:43.440 --> 0:45:45.040
<v Speaker 2>Anything, we're going to be in LA.

0:45:45.120 --> 0:45:47.840
<v Speaker 3>We are going to be in LA still Friday the thirteen.

0:45:47.960 --> 0:45:49.520
<v Speaker 2>Yeah, we'll still be doing the show.

0:45:49.880 --> 0:45:52.440
<v Speaker 3>Thanks to David des Ever at PEPAG Private Wealth Management.

0:45:53.040 --> 0:45:56.840
<v Speaker 1>This is the Bloomberg Business Week podcast. I'll ale Apple,

0:45:57.120 --> 0:46:00.640
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