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Speaker 1: Good morning.

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Speaker 2: It's Banda the sixth of November here in London. This

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Speaker 2: is the BlueBag Day bac AT podcast.

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Speaker 1: I'm Caroline Hepka.

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Speaker 3: And I'm Stephen Carroll. Coming up today, Israeli forces intensify

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Speaker 3: their assault on Gaza and effectively split the territory in two.

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Speaker 2: A lack of deals leaves Warren buffet with one hundred

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Speaker 2: and fifty seven billion dollars stuck on the sidelines.

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Speaker 3: Plus the rise of the far right, we bring you

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Speaker 3: a special report on the resurgence of German nationalism.

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Speaker 1: Let's start with a round up of our top stories.

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Speaker 3: Israeli troops have now entirely encircled Gaza City, attacking targets

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Speaker 3: both above and below ground. With the Palestinian territory effectively

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Speaker 3: cut in half, Internet and phone connections were once again

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Speaker 3: cut off in Gaza. Meanwhile, the US Secretary of State

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Speaker 3: Anthony Blincoln has made an unscheduled stop in Baghdad as

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Speaker 3: Washington tries to prevent a wider regional conflict. Speaking on

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Speaker 3: that visit, Blinken said more needs to be done to

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Speaker 3: get aid into Gaza.

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Speaker 4: We have about one hundred trucks a day going in.

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Speaker 4: That's good, but it's grossly insufficient. So now we're working

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Speaker 4: on on raising that significantly so that more aid in

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Speaker 4: a sustained way gets into a Palestine who needed.

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Speaker 3: The US secutive state also Metapalitinian Authority President Batmadabas in

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Speaker 3: the West Bank on Sunday. These visits come as The

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Speaker 3: Washington Post is reporting that the Biden administration officials say

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Speaker 3: Israel's military campaign against Hamas has resulted in too many

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Speaker 3: civilian casualties. Gaza's Hamas r On Health Ministry says since

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Speaker 3: the war started, nine five hundred people have died in

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Speaker 3: Israeli attacks.

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Speaker 2: Meanwhile, Jordan has dropped medical aid to a field hospital

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Speaker 2: in Gaza City. Amman has been highly critical of Israel's

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Speaker 2: military operations in the territory, and last week we call

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Speaker 2: its ambassador in protests. The country's foreign minister, I'man Safadi,

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Speaker 2: says that he's concerned about the hardline attitude of some

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Speaker 2: Israeli politicians.

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Speaker 5: Today sitting Israeli government. A member of the Israeli cabinet

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Speaker 5: calls publicly for knooking Gaza. Why Gaza from the face

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Speaker 5: of this eld kill two point four million people and

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Speaker 5: that should explain why people have lost faith and peace.

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Speaker 2: I'man Safadi was referring there to comments by the Israeli

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Speaker 2: ultra nationalists Minister Amichai ali Yahu, who suggested that dropping

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Speaker 2: an atomic bomb on the Gaza Strip would be quote

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Speaker 2: one way to go. Prom Minister Benjamin Netniya, who suspended

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Speaker 2: Eliha who formed cabinet meetings in response, saying that the

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Speaker 2: comments were quote disconnected from reality. The highly charged rhetoric

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Speaker 2: comes as Netnya, who faces growing political pressure over the

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Speaker 2: security lapses that led to the seventh of October Hamas attack,

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Speaker 2: in which one four hundred people were killed.

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Speaker 3: Two other news in China's Premier League, Kiang has pledged

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Speaker 3: to protect foreign investors, the nation's number two official, promise

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Speaker 3: to boost imports and promote opening up as foreign direct

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Speaker 3: investment turns negative for the first time this century. The

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Speaker 3: Bloomberg senior reporter in Beijing, James Meger, says, we should

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Speaker 3: take the message with some cynicism.

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Speaker 6: It's not like there's going to be an introduction of

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Speaker 6: new policies to actually expand imports. I mean, the government

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Speaker 6: here has been making the same speech at this same

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Speaker 6: event now for five years, since it began in twenty eighteen.

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Speaker 6: Shoo Peeing, Li Kachang and now Li Chang have all

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Speaker 6: said that China is going to expend imports from other countries,

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Speaker 6: and there's lots of opportunities in the Chinese market for

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Speaker 6: foreign companies, you know. At the same time, with the

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Speaker 6: slow down of the economy this year without the value

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Speaker 6: in whats is four and eight percent so far this year,

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Speaker 6: and so.

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Speaker 7: You're seeing the government as out there saying.

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Speaker 2: China is open, we welcome your business.

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Speaker 6: At the same time the economy is also slowing.

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Speaker 3: Meger added that China was actively blocking imports some countries

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Speaker 3: like Australia and Canada for geopolitical reasons.

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Speaker 2: Now to some corporate news, Telecometalia has sold its most

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Speaker 2: valuable asset, it's landline network, for twenty two billion euros.

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Speaker 2: US private equity giant KKI is buying the strategic asset

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Speaker 2: with the backing of Italy's government, who will keep a

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Speaker 2: key stake. The sale went through without a shareholder vote,

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Speaker 2: angering the largest shareholder, Vivendi, who have threatened legal action.

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Speaker 3: Warren Buffett has more cash than ever before, but few

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Speaker 3: deals where he can use it. Berkshire Hathaway's third quarter

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Speaker 3: earnings show a one hundred and fifty seven billion dollar hoard.

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Speaker 3: Bloomberg's Annabel Drillers explains why that's not necessarily a good thing.

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Speaker 8: Warren Buffett, one of the most famous value investor out there,

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Speaker 8: struggling to find value in the current market where it

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Speaker 8: is now, the cash well a couple of key places. Firstly,

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Speaker 8: a lot of it's parked in short term or short

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Speaker 8: dated securities or treasuries. And then they've also continued to

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Speaker 8: put more money into buybacks, so they spent more than

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Speaker 8: one point one billion dollars on buybacks in the latest period,

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Speaker 8: and that brings the total for sharey purchases here to

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Speaker 8: around the seven billion dollar mark.

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Speaker 3: Annibal Drillers ads. Some analysts think Buffett may come under

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Speaker 3: pressure to use his pile of money. Despite ramping up

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Speaker 3: Berkshire's acquisitions in recent years, the company has still struggled

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Speaker 3: to find many of the big ticket deals that made

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Speaker 3: it famous.

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Speaker 2: Now, Richie Sunak plans to create an annual bidding process to.

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Speaker 1: Drill for oil in the North Sea.

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Speaker 2: New laws could force the regulator to invite yearly applications.

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Speaker 2: The government is arguing that even by the twenty to

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Speaker 2: fifty net zero target, Britain will still be relying heavily

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Speaker 2: on oil and gas. Climate policy has become a political

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Speaker 2: dividing line, with the unpopular Conservative Party being accused of

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Speaker 2: rolling back green policies.

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Speaker 3: And turning to the results from Ryan Air announcing its

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Speaker 3: first ordinary dividend worth four hundred million euros are about

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Speaker 3: thirty five cents per share through two payments, an interim

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Speaker 3: and final dividend of two hundred million euros each payable

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Speaker 3: in February and September. This as the low cost airline

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Speaker 3: reported its first half profit after tax rising by fifty

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Speaker 3: nine percent a year on year to just under two

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Speaker 3: point two billion euros. It now sees it's twenty twenty

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Speaker 3: four forecast profit after tax of being between one point

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Speaker 3: eight five billion and two point zero five billion euros.

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Speaker 3: In a moment, we're going to be talking about the

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Speaker 3: surgeon support for the far out AfD party in Germany.

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Speaker 3: But first, a piece that caught my eye this morning

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Speaker 3: from Bloomberg Opinions Matthew Brooker. Now, any piece that starts

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Speaker 3: with the quoe from Oscar Wild is always a good

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Speaker 3: start of your day, I think, and he chose the

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Speaker 3: You know, we're all lying in the gutter, but some

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Speaker 3: of us are looking at the stars. To talk about

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Speaker 3: the UK's space ambitions. The revamped National Space Council aiming

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Speaker 3: to turn the UK into a superpower in the industry.

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Speaker 3: They've done a deal with the American company Axiom Space,

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Speaker 3: which may see British astronauts launched into space as well.

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Speaker 3: This is a story we've talked about, yeah, on the

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Speaker 3: program before. We've spoken to some of the companies that

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Speaker 3: have been involved in the launches.

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Speaker 2: So remember that that launch of a vehicle out of

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Speaker 2: Cornwall a few months ago. We spoke to the company

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Speaker 2: behind that. And also there's a lot of activity in Shetland, so.

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Speaker 1: I mean it. Matthew points this out that.

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Speaker 2: In some senses, this idea that the UK could kind

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Speaker 2: of rival the US China in terms of the space

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Speaker 2: race is a bit laughable, although the product.

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Speaker 3: Is els Jeff Bezos maybe forgiven. So for stifling a.

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Speaker 2: Yawn, yes, and we get that. But on the other hand,

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Speaker 2: of course, Brooker underlines, as we have done with those

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Speaker 2: sorts of interviews, the scale of this industry and actually

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Speaker 2: that the UK, you know, it's fantastic universities. You know,

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Speaker 2: the kind of productivity that a lot of these tack on,

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Speaker 2: sort of space companies that are very specialized in satellite communications,

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Speaker 2: all sorts of things. Actually, the UK is doing really

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Speaker 2: really well in this high tech industry.

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Speaker 3: Yeah, no, definitely an interesting piece to read about if

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Speaker 3: you're interested in learning more about the ambitions for that sector.

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Speaker 3: That's Matthew Brooker from Bloomberg Opinion. Well, let's go to

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Speaker 3: the Middle Least next, where Israel's military says its troops have

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Speaker 3: entirely encircled Gaza City. This is the US Secretary of

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Speaker 3: State Anthony Blenkin, has been continuing his latest round of

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Speaker 3: diplomatic visits in the region, including meeting the Palestinian Authority

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Speaker 3: President Mahmedabas in the West Bank. Let's get the latest

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Speaker 3: now from Bloomberg's Henry Mayer in Tel Aviv. Henry, good

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Speaker 3: morning to you. What is the latest that we've learned

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Speaker 3: about the Israeli military operations in Gaza?

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Speaker 7: Good morning, Yes, So, overnight the Israeli army said that

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Speaker 7: it had entirely encircled Gaza City and had effectively cut

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Speaker 7: off the north from the south in Gaza. Now that's

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Speaker 7: important because the Israeli army have been earning residents of

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Speaker 7: the North to try and head south and avoid the

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Speaker 7: hostilities which are mainly concentrated in that part of the

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Speaker 7: Gaza Strip. Unfortunately, what we see is that there are

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Speaker 7: still very hundreds of thousands of residents still in the

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Speaker 7: North exposed to Israeli bombing and it's difficult for them

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Speaker 7: to get to safety.

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Speaker 2: What has that meant for the humanitarian situation in Girlza, Well.

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Speaker 7: The humanitarian situation is dire. There really is no other

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Speaker 7: way to describe it. You know, there's no power. The

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Speaker 7: Israel has cut off fuel supplies as well. It said

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Speaker 7: that it has to do this in order to prevent

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Speaker 7: that from getting into the hands of Hamas is a

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Speaker 7: very limited water supply, the risks of diseases now spreading,

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Speaker 7: and the UN says that food essential food supplies are

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Speaker 7: going to be running out within the next one to

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Speaker 7: three days.

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Speaker 3: We've been actually Blincoln has been visiting not only the

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Speaker 3: West Bank to meet Mahmadabas, but also he's been to

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Speaker 3: Iraq as well. What have we heard from the US

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Speaker 3: Secretary of State during this latest diplomatic tour.

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Speaker 7: Well, Anthony Blincoln has brought you a very consistent message,

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Speaker 7: which is at the US is called going on Israel

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Speaker 7: to pause the fighting in order to allow more humanitarian

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Speaker 7: aid in US is also trying to help find a

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Speaker 7: solution for the more than two hundred and forty hostages

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Speaker 7: who were taken from Israel on October seventh by Hamas

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Speaker 7: and are now inside Gaza. But that is difficult because

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Speaker 7: the really Prime Minister is insisting on the full release

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Speaker 7: of the hostages in order to agree to any humanitarian

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Speaker 7: cease fire, even temporary. So the situation really is more

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Speaker 7: or less in a deadlock at the moment.

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Speaker 2: There's been criticism in the US of the Biden administration's

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Speaker 2: approach to the war. What are the chances there in

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Speaker 2: terms of the war spilling over.

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Speaker 1: We also.

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Speaker 2: Know that the issue around Iran is very significant.

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Speaker 7: Well, I mean, that's one of the main US concerns. Obviously,

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Speaker 7: we've seen the situation on the border with Lebanon heating

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Speaker 7: up over the last few weeks. You know, it hasn't

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Speaker 7: gone behoind a certain point, but we're watching that very closely.

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Speaker 7: The leader of head Bolla, Tasan Nasralla, gave this quite

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Speaker 7: incendury speech on Friday, but it was most people understood

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Speaker 7: it as keeping within certain boundaries, because if we see

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Speaker 7: major rocket attacks on Israeli cities, then you would see

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Speaker 7: the war actually spreading to Lebanon. Regarding the US position,

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Speaker 7: I think that they are you know, it's a cross

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Speaker 7: party position that Biden has adopted. There is some criticism,

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Speaker 7: yes on more on the progressive wing of the Democratic Party,

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Speaker 7: but I think broadly he enjoys political support for his position.

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Speaker 3: Okay, Henry, thank you very much for bringing us up

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Speaker 3: to date. That's been Brooks, Henry Mayor. They're reporting from

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Speaker 3: tele Aviv this morning.

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Speaker 2: Now we go to Germany for our next story. The

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Speaker 2: far right Alternative for Deutschland party has seen its popularity

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Speaker 2: in the polls rise almost doubling to over twenty percent

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Speaker 2: in the last two years. Germany's political mainstream has struggled

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Speaker 2: to find an answer to the AfD, and that is

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Speaker 2: the subject of today's Bloomberg Big Take. Chris Writer joins

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Speaker 2: us now for more on this from Berlin. Good morning, Chris,

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Speaker 2: thank you for being with us. The AfD has been

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Speaker 2: on the German political scene for a long time, but

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Speaker 2: we've seen this recent surge in popularity what's been driving.

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Speaker 9: That, Yeah, good morning, Like this round is effectively like

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Speaker 9: started during the COVID pandemic in the sense that there

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Speaker 9: was a lot of anti establishment sentiment that was stirred

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Speaker 9: up by the government's slockdown actions and that's been activated

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Speaker 9: in the last couple of years with the new coalition

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Speaker 9: and a lot of some of their policies, and especially

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Speaker 9: they're infighting, and so Germans have a lot of Germans

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Speaker 9: have progressively seen themselves been feeling left behind and feeling

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Speaker 9: how Germany is shifting away from them. And right now

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Speaker 9: Germany is dealing with a number of crises all at once.

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Speaker 9: After COVID came to warn Ukraine and that stoked the

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Speaker 9: energy crisis last year, and then you have policies, especially

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Speaker 9: like this. There was a heating reform in the summer

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Speaker 9: that that made that felt very invasive to a lot

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Speaker 9: of Germans that the government was basically reaching inside their

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Speaker 9: home and stepping there, stepping over their bounce.

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Speaker 3: How has the Israel Hamas war affected the popularity or

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Speaker 3: support for if T.

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Speaker 9: Yeah, well, it's added like an extra sense of tension

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Speaker 9: within German society. And when you see, you know, especially

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Speaker 9: here in Berlin, there's been quite a few pro Palestinian

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Speaker 9: and and uh sort of aggressive kind of demonstrations, and

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Speaker 9: when you're you're like out in the hindulands of Germany,

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Speaker 9: it sort of looks like it's It just stokes this

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Speaker 9: idea that there's tension in society and that German society

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Speaker 9: is is changing in a way that's rapidly and dissettling

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Speaker 9: a lot of people.

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Speaker 2: Do you think the party is closed to actually getting

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Speaker 2: real power? And also could it change its policies because

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Speaker 2: you know, obviously political parties you can shift in order

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Speaker 2: to address the concerns of voters. What does that mean

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Speaker 2: for the a f D.

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Speaker 9: If you look at German politics over the last couple

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Speaker 9: of years, it feels like the mainstream policies are shifting

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Speaker 9: more towards the a f D than the AfD has

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Speaker 9: modifying their own policies. I mean, the rhetoric towards migration

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Speaker 9: especially has been more taken a harder line in recent weeks.

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Speaker 9: And so the first bite of you know, a chance

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Speaker 9: of getting some sort of real share and power is

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Speaker 9: next year there's three state elections in eastern Germany, which

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Speaker 9: is their stronghold, but their stronghold has been shifting from

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Speaker 9: the east also to the west, as we've seen in

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Speaker 9: the recent elections in Bavaria and Hesse. And if they

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Speaker 9: get there in those states, they are the strongest party

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Speaker 9: and so if they continue that trend and if they

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Speaker 9: maintain the strongest party status, they would have the right

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Speaker 9: to form a government. Now every other party has said, oh,

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Speaker 9: we won't work with you, but that's going to be

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Speaker 9: harder when it actually comes down and the votes say

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Speaker 9: we're the strongest party, we have the right to form

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Speaker 9: a government. And then again, if they don't form a

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Speaker 9: government and there's some anti AfD coalition in those states,

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Speaker 9: you kind of drive a wedge deeper in society where

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Speaker 9: basically get says the mainstream is shutting out the votes

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Speaker 9: of the largest segment of the population. And so that's

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Speaker 9: that next year in September, that's when things get can

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Speaker 9: get really problematic and it would be really interesting to see.

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