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Speaker 1: Good morning.

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Speaker 2: I'm Nathan Hager and I'm Amy Morris. Here are the

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Speaker 2: stories we're following today.

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Speaker 3: We begin this morning with a political shift of sorts

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Speaker 3: in Israel. Protests have raged across the country for months

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Speaker 3: after a sweeping proposal to overhaul Israel's judicial system, But

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Speaker 3: now Benjamin Natanyahu appears to be softening his stance. That's

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Speaker 3: the news he gave us In an exclusive Bloomberg interview,

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Speaker 3: Netanyahu says he will not pursue the entire overhaul as

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Speaker 3: originally planned.

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Speaker 4: I'm still going to give it several months to try

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Speaker 4: to get another consensus. What is it. It would probably

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Speaker 4: be about the composition of the committee that elects judges.

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Speaker 4: I don't think we should move from one extreme where

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Speaker 4: we have perhaps the most activist judicial court on the planet,

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Speaker 4: to get into a point where the legislature are can

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Speaker 4: just knock out any decision that the court makes. There

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Speaker 4: has to be a balance. That's what we're trying to restore.

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Speaker 3: Israeli Prime Minister Benjamin Natanyah, who also tells us he

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Speaker 3: wants to deepen his country's economic and business times with

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Speaker 3: Saudi Arabia. Stay tuned for more of that interview coming

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Speaker 3: up shortly on Bloomberg day.

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Speaker 5: Break and Nathan.

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Speaker 2: Politics is also front and center here in the US,

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Speaker 2: as Donald Trump's indictments weigh on the race for president.

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Speaker 2: According to a new CBS News you go pull more

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Speaker 2: than half of America and say the former president tried

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Speaker 2: to stay in office through illegal means. Trump's lawyer John

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Speaker 2: Laurel made the rounds on the Sunday political talk shows

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Speaker 2: defending the former president. Here he is on ABC's This Week.

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Speaker 6: It's up to the government to prove these things. The

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Speaker 6: defense has no obligation to prove anything. We put the

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Speaker 6: government to its test. The government must prove beyond a

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Speaker 6: reasonable doubt that President Trump had criminal intent.

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Speaker 2: Trump lawyer John Laurel was a guest on nearly all

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Speaker 2: of the Sunday shows, which you can hear every week

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Speaker 2: right here on Bloomberg Radio.

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Speaker 3: Well back on Wall Street Amy. Economic data are and

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Speaker 3: focus again this week. The latest reading on consumer prices

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Speaker 3: comes out Thursday that could help the Federal Reserve to

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Speaker 3: sign its next move right now. FED Governor Michelle Bowman

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Speaker 3: says more rate hikes may be needed, while Atlanta Fed

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Speaker 3: President Rafael Bostik says the Central Bank may be done.

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Speaker 3: At the same time, Bostic seas policy staying tighter for longer.

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Speaker 3: I'm not expecting this to be a two month or

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Speaker 3: three month period.

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Speaker 7: My outlook is that we'll still be in a restrictive territory.

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Speaker 4: Well.

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Speaker 3: In the twenty twenty four Atlanta Fed chief Rafael Bostik

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Speaker 3: made those comments on a special edition of Bloomberg's Wall

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Speaker 3: Street Week. Subscribe or download the show wherever you get

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Speaker 3: your podcasts.

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Speaker 2: And we have earnings to tell you about this morning.

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Speaker 2: Warren Buffett's Berkshire Hathaway beat results in its latest report

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Speaker 2: Bloomberg's Denise Palegreenei as it tales.

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Speaker 5: Billionaire Warren Buffett's conglomerate is reporting second quarter operating profit

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Speaker 5: that beat the average analyst estimate, thanks in part to

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Speaker 5: strength and insurance units and also its acquisition of Alleghany.

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Speaker 5: But Berkshire had to raise prices and cut advertising at

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Speaker 5: Geico to make those numbers, and that could already be backfiring.

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Speaker 5: Over the last twelve months, policies enforce fell by two

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Speaker 5: point seven millions, suggesting a loss of market share. Denise

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Speaker 5: Pellegrini Bloomberg Day Break.

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Speaker 3: Okay, Denise, thank you, and it's going to be another

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Speaker 3: busy week for earnings, with results from nearly three dozen

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Speaker 3: companies in the S and P five hundred expected. Bloomberg's

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Speaker 3: Charlie Pellett joins us with that.

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Speaker 1: We've heard from roughly eighty percent of S and P

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Speaker 1: five hundred companies, but there will be plenty more to

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Speaker 1: come this week. Amid questions about current market valuations given

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Speaker 1: the prospects for corporate earnings, Nattie lovell Is, senior US

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Speaker 1: equity STRATEGISTICT ubs financial services.

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Speaker 8: Well looking for sort of mid single digit growth over

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Speaker 8: the next twelve months, so we think that this market

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Speaker 8: is probably cap as a result of the earn is outlook.

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Speaker 1: Among this week's most closely watched reports will be Walt

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Speaker 1: Disney Ups, Lily Take two Entertainment, and Rivian Automotive in

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Speaker 1: New York. Charlie Palette, Bloomberg Daybreak.

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Speaker 5: Thank you, Charlie.

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Speaker 2: Elsewhere in corporate news, trucking firm Yellow has officially filed

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Speaker 2: for bankruptcy following years of financial woes for Yellow that

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Speaker 2: were compounded by a labor force dispute. The shutdown leaves

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Speaker 2: roughly thirty thousand employees jobless. It comes on the heels

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Speaker 2: of accountroversial seven hundred million dollar pandemic relief loan that

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Speaker 2: Yeller received three years ago. Congressional investigators concluded last year

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Speaker 2: that the company was ineligible.

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Speaker 7: For the loan.

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Speaker 3: Overseas, Amy, it looks like Credit Sweez is making cuts

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Speaker 3: in Asia. That's according to Reuters, which says the firm

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Speaker 3: is laying off about eighty percent of its Hong Kong

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Speaker 3: based investment banking staff. Hong Kong accounts for the biggest

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Speaker 3: share of investment bankers in Asia for Credit Swise.

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Speaker 2: Although Big Tech has already reported earnings for this quarter,

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Speaker 2: we still have some news out of Silicon Valley, Elon

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Speaker 2: Musk resurrecting the idea of a cage fight with Mark

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Speaker 2: Zuckerberg and promising to stream it live. Bloomberg's Ed Baxter

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Speaker 2: with those details.

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Speaker 9: As the business competition grows with metas threads and Musk's X.

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Speaker 9: Musk has posted that the fight will be streamed on X.

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Speaker 9: So the question, which seem to be is Musk just

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Speaker 9: social media trolling? Aganner as he heard more from Zuckerberg,

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Speaker 9: who had earlier responded for us to let him know

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Speaker 9: where and when Zuckerberg is a martial arts enthusiast whose

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Speaker 9: participate paid this year and competition, and Musk says he

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Speaker 9: has been lifting weights throughout the day in preparation. In

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Speaker 9: San Francisco. I'm at Baxter Bloomberg Daybreak.

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Speaker 2: Thank you, Ed, and we are learning this morning that

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Speaker 2: the timing of the alleged fight may be in flux.

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Speaker 2: That's according to Elon Musk, who says he's getting an

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Speaker 2: MRI on his neck and upper back and may need

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Speaker 2: surgery before the fight can happen. And hot temperatures across

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Speaker 2: the US were back and focused over the weekend. Triple

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Speaker 2: digit temperatures in Texas, but pressure on the power grid

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Speaker 2: causing prices to jump more than eight hundred percent. Households

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Speaker 2: and businesses in the state used a record amount of electricity,

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Speaker 2: but the grid held up throughout the weekend. This is

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Speaker 2: Bloomberg and time now for a look at some of

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Speaker 2: the other stories making news around the world. For that,

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Speaker 2: we're joined by Bloomberg's Michael bar Good morning.

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Speaker 10: Michael, Good morning. Amy. Russia launched more than seventy missiles

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Speaker 10: and drones at Ukraine in one of its biggest assaults

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Speaker 10: in recent weeks. An escalation of force after two Russian

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Speaker 10: ships were hit and damaged by drones in the Black Sea.

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Speaker 10: Fi their Oleg Miroslav of the Transfiguration Cathedral, an Orthodox

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Speaker 10: cathedral ravaged by a Russian missile last month, was asked

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Speaker 10: about Russian President Vladimir Putin. Miroslav, speaking to a reporter

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Speaker 10: through a translator.

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Speaker 5: Can Vladimir Putin be called a true Christian.

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Speaker 4: One?

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Speaker 1: Of course not.

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Speaker 3: I don't even have to think about it, because Christians

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Speaker 3: don't kill others.

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Speaker 5: They help each other.

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Speaker 4: Ristiana Pamaga.

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Speaker 5: Should Vladimir Putin be forgiven?

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Speaker 1: And a voi show every person deserves to be forgiven,

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Speaker 1: but the most important judgment comes from God.

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Speaker 10: Meanwhile, the footprint of President Vladimir Putin's war or Ukraine

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Speaker 10: is growing fast after a weekend in which sea drones

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Speaker 10: crippled a Russian naval vessel and oil tanker. The attacks

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Speaker 10: put at risk Russia's commodity exports via the Black Sea,

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Speaker 10: a route that accounts for most of the grain and

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Speaker 10: fifteen to twenty percent of the oil that rushes sales

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Speaker 10: daily on global markets. Significantly higher insurance and shipping costs

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Speaker 10: are likely to follow from Moscow. A fire fighting tragedy

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Speaker 10: in California. An emotional briefing overnight, cow Fire official David

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Speaker 10: Fulcher confirming that there were multiple depths. When two choppers

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Speaker 10: collided Sunday as the crew members battled a brush fire

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Speaker 10: in Riverside County.

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Speaker 11: The first helicopter was able to land safely nearby. Unfortunately,

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Speaker 11: the second helicopter crashed and tragically all three members perished,

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Speaker 11: which included one CalFire Division Chief, one cal Fire Captain

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Speaker 11: and one contract pilot.

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Speaker 10: Cawfire's David Fulcher. In Portugal, Pope frances Is wrapping up

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Speaker 10: his five day trip there. The Pope was greeted by

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Speaker 10: massive crowds, including the biggest one yesterday for World Youth

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Speaker 10: Day in Lisbon. Roughly eight hundred thousand young Catholics gathered

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Speaker 10: see Pope Francis at the one every three year festival.

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Speaker 10: Global News twenty four hours a day, powered by more

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Speaker 10: than twenty seven hundred journalist and analysts in over one

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Speaker 10: hundred and twenty countries. How michaelbar this is Bloomberg Gaming.

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Speaker 2: All right, Thank you, Michael, Tom now for our Bloomberg

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Speaker 2: Sports update. For that, we bring in John's dash hour.

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Speaker 7: Any by far the worst Women's World Cup for the

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Speaker 7: United States barely made it out of group play and

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Speaker 7: then its earliest exit ever, failing to even reach the quarterfinals.

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Speaker 7: The US lost to swedeen scoreless. Played for two hours,

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Speaker 7: the US had a three two lead and the penalty

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Speaker 7: kicks and then lost five to four. Meghan Rappino missed hurt.

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Speaker 12: Oh, we played really well. I'm so happy for us

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Speaker 12: that we went out like that, playing the way that

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Speaker 12: we did, and you know, having a ton of joining

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Speaker 12: the ball. I mean, this is like a sick joke

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Speaker 12: for me personally. I'm just like, this is dark comedy.

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Speaker 5: I missed a.

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Speaker 7: Penalty pinot on Fox Sports after the game. She had

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Speaker 7: not missed a PK playing for her country since two

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Speaker 7: thousand eighteen. It was her final match playing for the

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Speaker 7: US scene with Julie ERTs. Meanwhile, Leonel Messi two more goals.

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Speaker 7: He has scored seven in his first four games playing

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Speaker 7: for Miami and MLS. They trailed four to two and

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Speaker 7: rallied to beat Dallas in penalty kicks. Windham Golf in Greensboro,

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Speaker 7: Lucas Glover twenty under part one by two at the

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Speaker 7: live event in West Virginia. Bryson Deshamba, who had a

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Speaker 7: sixty one on Saturday, came back with a round of

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Speaker 7: fifty eight that would have tied the PGA record. Jim

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Speaker 7: Furick had a fifty eight back in twenty sixteen baseball,

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Speaker 7: the Oriel seventieth win of the season. They shout out

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Speaker 7: the Mets to nothing and the Nationals won sixty three

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Speaker 7: at Cincinnati. The Red Sox swept at home by Toronto

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Speaker 7: Blue Jays won thirteen to one Battle of the Bay.

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Speaker 7: The Ages beat the Giants eight to six. John Stansh

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Speaker 7: Edward Bloomberg sports.

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Speaker 4: From coast to coast, from New York to San Francisco,

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Speaker 4: Boston to Washington, DC.

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Speaker 10: Nationwide on Syrias XAM, the Bloomberg Business app in Bloomberg.

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Speaker 4: This is Bloomberg Daybreak. Good morning.

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Speaker 3: I'm Nathan Hager. For month's protests have gripped Israel. The

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Speaker 3: demonstrations have been targeted at a controversial judicial overhaul imposed

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Speaker 3: by Prime Minister Benjamin Netanyahoo. He says israel system allows

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Speaker 3: judges to play too big a role in government, and

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Speaker 3: he's outlined plans to change how judges are selected. That

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Speaker 3: did spark the largest anti government protest movement in Israel's history.

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Speaker 3: Now in an exclusive interview with Bloomberg News, Prime Minister

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Speaker 3: Benjamin Netanyaho appears to be softening his stance. He sat

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Speaker 3: down for that wide ranging conversation with Bloomberg's Francine Loqua,

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Speaker 3: saying he now will not pursue the entire judicial overhaul.

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Speaker 3: Let's listen into that conversation.

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Speaker 4: Now. Well, I think that we've already done quite a bit.

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Speaker 4: I have stopped the judicial legislation for three months, seeking

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Speaker 4: consissants from the other side, unfortunately not getting it, then

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Speaker 4: brought in a relatively minor part of the reform past it,

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Speaker 4: and then said I'm still going to give it several

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Speaker 4: months to try to get another consensus. What is it?

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Speaker 4: It would probably be about the composition of the committee

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Speaker 4: that elects judges.

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Speaker 8: With the selection of the judges, how they're selected.

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Speaker 4: Right, That's basically what's left. And because other things I

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Speaker 4: think we should not legislate. I don't think we should

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Speaker 4: move from one extreme where we have perhaps the most

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Speaker 4: activist judicial court on the planet, to get into a

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Speaker 4: point where the legislature arencit can just knock out any

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Speaker 4: decision that the court makes. There has to be a balance.

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Speaker 8: That's what we're trying to restore supremis. When you look

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Speaker 8: at the change in selection for the judges, how quickly

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Speaker 8: could that come?

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Speaker 4: Well, if we get a compromise, it could come immediately.

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Speaker 4: If we can't get a buy in from the opposition

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Speaker 4: in the parliament, there's always a buy in from the public.

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Speaker 4: What is the thing that the public accepts? And I'm

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Speaker 4: giving it my best shot. I'm spending I wouldn't say

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Speaker 4: twenty four hours a day on it, about twelve hours

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Speaker 4: a day.

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Speaker 8: And if the public is not behind it, what do

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Speaker 8: you do?

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Speaker 4: I think you should choose something. I think you should

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Speaker 4: choose something that has broad acceptance, which looks like one

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Speaker 4: which looks like something that I'd like to negotiate, not

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Speaker 4: on not even on Bloomberg.

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Speaker 8: Okay, but give me a flavor of is it walking

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Speaker 8: back some of some of the things that have been

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Speaker 8: said by certain ministers around you?

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Speaker 4: Oh, ministers can say anything. I don't control words in

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Speaker 4: our parliamentary system. I control deeds and that has to

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Speaker 4: be understood. But since you know the European system, you

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Speaker 4: know that unlike a presidential system, you don't control the

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Speaker 4: you know what is said by members of.

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Speaker 8: Your cabinet, but you can ask them tone it down.

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Speaker 8: Have you asked them to tone it down.

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Speaker 4: One hundred times and they're listening. I succeeded fifty times.

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Speaker 4: Don't You can always succeed. You don't always succeed. But

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Speaker 4: that's what's important to understand, is what is when the

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Speaker 4: dust settles? Are we going to have Israel that is more,

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Speaker 4: is stronger democratically or is it weaker democratically? Is it

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Speaker 4: something where you're going to have the balance that you

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Speaker 4: need between the will of the majority and the rights

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Speaker 4: of the minority or individual rights. Has that been strengthened,

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Speaker 4: that balance or has it been weakened. I maintained it'll

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Speaker 4: be strengthened. It certainly will not be right premise.

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Speaker 8: So there are a lot of questions, especially from investors,

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Speaker 8: especially from businesses, because you always need a body that

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Speaker 8: makes sure that anything that the government passes is legal,

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Speaker 8: and there's maybe a perception problem. But this is weakened.

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Speaker 8: So what is the message to business investors and to

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Speaker 8: markets right now?

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Speaker 4: I don't think it's weakened. I think the ultimate actually

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Speaker 4: I think the ultimate regulator of the democracies are not courts,

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Speaker 4: but are the public choice. I think that's a fundamental

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Speaker 4: misconception of how democracy's work.

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Speaker 8: We always need someone to overlook them.

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Speaker 4: But if you have a lowser government, then they're not

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Speaker 4: re elected. That's the most important thing. The most important

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Speaker 4: regulator is the political markets. But I don't think that

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Speaker 4: we should in any way weaken the courts. There's a

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Speaker 4: difference between between an independent court and an all powerful court,

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Speaker 4: and I think what we're trying to do is bring

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Speaker 4: back to Israel where it was in its first fifty years,

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Speaker 4: where there was an adequate balance between the courts, the

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Speaker 4: legislature and the executive Prime Minister.

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Speaker 8: There's a perception problem, maybe, if that's what you think,

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Speaker 8: But there's certainly a division in this country, with hundreds

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Speaker 8: of thousands of people protesting and market participants worried about

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Speaker 8: what happens next. What's your message to them?

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Speaker 4: When the dust set Israel will not only will remain

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Speaker 4: a democracy, it will be even a stronger democracy. But

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Speaker 4: more importantly, it will not in any way impair the

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Speaker 4: enormous business and economic capabilities of Israel in the new

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Speaker 4: technological age.

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Speaker 8: But Premister, when does this dust settle? So far, you

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Speaker 8: haven't even been prepared to say that you will follow

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Speaker 8: what the Supreme Court decides.

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Speaker 4: Now, we follow what the Supreme Court decides on. The

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Speaker 4: Supreme Court so far has also followed the basic rule

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Speaker 4: of not striking down basic laws, which they themselves dean

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Speaker 4: are the basis of the Constitution. Both things have to

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Speaker 4: be maintained.

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Speaker 8: So what would you tell markets and investors today that

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Speaker 8: whatever they decide right there's something big that's going to

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Speaker 8: be decided in the next couple of months, you will

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Speaker 8: abide by that.

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Speaker 4: I hope that we don't get into a constitutional crisis.

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Speaker 4: I think we won't. I think there's a way of

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Speaker 4: reaching an equitable compromise, which is what I'm trying to do. Now.

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Speaker 4: If I reveal to you everything that I'm trying to do,

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Speaker 4: I won't be able to do it.

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Speaker 8: But the market wants to understand that there's nothing worse

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Speaker 8: for the markets for investors to actually be in the

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Speaker 8: Limbu where you're not sure exactly what will happen or

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Speaker 8: how the government will react.

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Speaker 4: I'm absolutely sure that Israel will come out stable and

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Speaker 4: successful and democratic, at least as democratic it my view,

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Speaker 4: more democratic. I don't think we're going to tear the

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Speaker 4: country apart. I don't think you're going to have civil war.

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Speaker 4: I think right now what you're seeing is the natural

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Speaker 4: conflict between opposing views that have not yet meshed, but

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Speaker 4: they will mesh.

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Speaker 8: Do you support your central bank governor, who is very

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Speaker 8: well respected internationally?

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Speaker 4: Sure, I appointed him.

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Speaker 8: Will you back him for another term? He has to decide,

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Speaker 8: I think by next month.

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Speaker 4: Well, I haven't talked to him yet, but I will,

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Speaker 4: but I've guarded I would say rigorously his independence and

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Speaker 4: the independence of the Central Bank, and that will continue

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Speaker 4: to be the policy. I will talk to him, but

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Speaker 4: you wouldn't believe this, but he just not had the

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Speaker 4: opportunity to discuss that.

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Speaker 8: But when you talk to him, will you ask him

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Speaker 8: to stay on?

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Speaker 4: Possibly? I want to think about right now. I think

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Speaker 4: he's been an exceptional Central Bank director, and I think

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Speaker 4: that's a possibility that I'll have to talk to him

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Speaker 4: about one.

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Speaker 8: Of your ministers I think called him a savage for

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Speaker 8: raising interest rates.

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Speaker 4: Yeah, well, my ministers in our hectic parliamentary system could

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Speaker 4: say anything, but it's a fact that we've never intervened

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Speaker 4: with the independence of the Central Bank and we won't.

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Speaker 4: In fact, I think I passed some laws or corrective

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Speaker 4: additional laws that safeguarded the independence of the Central Bank.

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Speaker 4: I do not want the government broaching in on what

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Speaker 4: the central bank has to do.

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Speaker 8: So do you support the interest rate hikes?

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Speaker 4: I'd leave that decision to the central Bank. You know,

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Speaker 4: I've had several central Bank directors because I've been in

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Speaker 4: government a long time. I think in a few months

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Speaker 4: I'll be probably more time in as Prime Minister than

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Speaker 4: anybody in the western world for the last half century.

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Speaker 4: So I've had a lot of central bank directors to

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Speaker 4: talk to. I always talk to them in a padded room,

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Speaker 4: absolutely sound proof that we could hurled at each other

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Speaker 4: whatever we want. But when I come out, I always

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Speaker 4: give backing to the central back to it.

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Speaker 8: But Prime Minister, it would be pretty powerful or a

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Speaker 8: pretty powerful message to the markets, given the divisions and

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Speaker 8: given the turmoil, if you were to ask to stay.

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Speaker 4: On, could be that's a consideration. I'll consider it.

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Speaker 8: But do you agree would that be a powerful message?

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Speaker 4: I think the powerful message is the independence of the

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Speaker 4: Central Bank, and I think the choices that I've made

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Speaker 4: in bringing in central bank directors, whether it was Stanley

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Speaker 4: Fisher and after him the current Central Bank director, I

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Speaker 4: think people see that we choose and choose well, and

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Speaker 4: that will not and some others in between.

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Speaker 8: I don't want it, and that will not change.

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Speaker 4: No, it will.

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Speaker 8: You're overhauling the juiciary, but the central bank won't be.

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Speaker 4: I'm not overhauling the judiciary. I'm correcting the judiciary to

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Speaker 4: where it was. I don't think we'll get there, but

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Speaker 4: to where it was at Israel's first fifty years before

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Speaker 4: the judicial imbalance was created, and I'm trying to bring

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Speaker 4: it back modestly into line. This is described as the

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Speaker 4: end of democracy. Why why is it described as the

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Speaker 4: end of democracy? Because we say that the judiciary in Israel,

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Speaker 4: and in Israel alone, cannot say I'm striking down a

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Speaker 4: government decision or a parliamentary law simply because I think

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Speaker 4: it's unreasonable. That doesn't exist to that extent.

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Speaker 8: No, but it's a check in balance. And this is

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Speaker 8: what again, this is what investors are worried about, many

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Speaker 8: of checks kind of So I was going to ask you,

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Speaker 8: what's your message today for a business that wants to

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Speaker 8: come here that's a little bit nervous about what they

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Speaker 8: can do longer term?

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Speaker 4: There is no absence of checks in Israel. The courts

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Speaker 4: have all the checks, but they have no balance. So

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Speaker 4: if you're concerned that the court will not be able

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Speaker 4: to intervene in certain decisions, they've got one hundred different

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Speaker 4: checks on that. But one thing that we want to

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Speaker 4: have is not to be able to have the court

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Speaker 4: intervene on anything, on any matter without any reference to

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Speaker 4: any statute or any law. That is not democracy.

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Speaker 8: It's my understanding. They've only done that a handful of times.

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Speaker 8: But if you're an investor today, right, and you look

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Speaker 8: at Israel that has to deal with Saudi, that has

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Speaker 8: to deal with Iran, why are you falling on the

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Speaker 8: sword about the judiciary.

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Speaker 4: Well, I'm not falling on the sword. I'm trying to

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Speaker 4: correct it imbalance because people, because millions of Israelis vote

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Speaker 4: timing again for governments who want to have certain government policies, okay,

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Speaker 4: And the governments are elected and they want to enact

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Speaker 4: their policies, and the Supreme Court often intervenes in ways

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Speaker 4: that nullifies the will of the majority without any reference

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Speaker 4: to a law. For example, I'll give you an example,

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Speaker 4: we have foreign workers. Israel has been able to prevent

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Speaker 4: the entry of.

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Speaker 8: Arms, and premiers were fully aware. But were you upset

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Speaker 8: by hundreds of thousands of people in the streets.

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Speaker 4: Well, there have been hundreds of thousands of the others.

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Speaker 4: That's a reflection of democracy nobody describes. Nobody describes the

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Speaker 4: other side. We had a quarter of a million people

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Speaker 4: in the street the other day supporting the judicial reform.

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Speaker 4: You didn't hear a word.

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Speaker 8: But prem Minister, you were the one that brought people together, right,

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Speaker 8: that build bridges.

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Speaker 4: What's happened, Well, because a it didn't happen overnight. When

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Speaker 4: I did the economic refirms that made Israel an economic juggernaut,

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Speaker 4: a free market economy, technological economy, I had huge demonstrations.

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Speaker 4: I had a five months national strike, three months and

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Speaker 4: two months from the labor union I had when I

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Speaker 4: tried to take the gas out of the seabed. I

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Speaker 4: have the same people are organizing the strikes now saying

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Speaker 4: this is the end of democracy, this will destroy our environment.

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Speaker 4: Mind you taking substituting gas for coal, destroying the run.

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Speaker 4: But it's the same thing now they're saying we're destroying

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Speaker 4: the democracy. That's nonsense. But I understand it's nonsense in

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Speaker 4: my view, it's not nonsense in their view. They're generally

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Speaker 4: concerned and I think there's a happy middle ground there.

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Speaker 4: I've always found it in other matters, whether it was

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Speaker 4: in defense or Iran, or free market economies or taking

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Speaker 4: gas out of the seabed. I'll find it here as well.

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Speaker 8: Again, there's so much nervousness right out there. When you

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Speaker 8: speak to investors and you speak to the markets, give

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Speaker 8: me a sense of what you would be able to

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Speaker 8: do or to give to normalize relationship with Saudi Arabia.

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Speaker 4: Well, Saury Arabia, I think is one of the exceptional

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Speaker 4: things that tells you why I'm very optimistic about Israel

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Speaker 4: really one of two reasons, one of two main reasons.

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Speaker 4: One is that, well, it's start with Saudi Arabia, but

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Speaker 4: then I'll get with the other one. I think that

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Speaker 4: we're about to witness a pivot of history. Maybe I

441
00:22:33,880 --> 00:22:36,399
Speaker 4: can't guarantee you that it'll happen, but first, there's an

442
00:22:36,440 --> 00:22:43,960
Speaker 4: economic corridor of energy, transport and communications that naturally goes

443
00:22:44,040 --> 00:22:48,320
Speaker 4: through our geography from the Arabian Peninsula, from Asia to

444
00:22:48,359 --> 00:22:52,080
Speaker 4: the Arabian Peninsula to Europe. We're going to realize that.

445
00:22:52,400 --> 00:22:53,960
Speaker 4: And by the way, my sense is we're going to

446
00:22:53,960 --> 00:22:58,119
Speaker 4: realize that despite whether we have formal peace or not?

447
00:22:58,720 --> 00:23:01,000
Speaker 8: But do you have to give consents? So we understand

448
00:23:01,000 --> 00:23:03,680
Speaker 8: Saudi Arabia, But what would you what would you give?

449
00:23:03,720 --> 00:23:06,760
Speaker 8: Would you would you limit, for example, Jewish settlements in

450
00:23:06,840 --> 00:23:07,600
Speaker 8: the West Bank.

451
00:23:07,800 --> 00:23:10,960
Speaker 4: Again, you have a good pension as a good journalist

452
00:23:10,960 --> 00:23:15,680
Speaker 4: to try to eke out for me the my negotiation stance,

453
00:23:15,760 --> 00:23:17,560
Speaker 4: and of course you're not going to succeed, but you

454
00:23:17,600 --> 00:23:20,600
Speaker 4: could keep on trying. But do I think it's feasible

455
00:23:20,680 --> 00:23:24,240
Speaker 4: to have that? And what do I think that political

456
00:23:24,320 --> 00:23:27,560
Speaker 4: questions will block it? I doubt it. If there's political will,

457
00:23:27,960 --> 00:23:32,640
Speaker 4: there will be a political way to achieve normalization and

458
00:23:32,840 --> 00:23:36,520
Speaker 4: a formal peace between Israel and Saudi Arabia that has

459
00:23:37,280 --> 00:23:40,600
Speaker 4: enormous economic consequences for your investors. And if they have

460
00:23:40,680 --> 00:23:43,440
Speaker 4: to bet on it right now, I bet on it,

461
00:23:43,680 --> 00:23:44,639
Speaker 4: but I can't guarantee it.

462
00:23:44,680 --> 00:23:46,840
Speaker 8: And primary this is why I'm not trying to ink

463
00:23:46,880 --> 00:23:51,119
Speaker 8: out negotiations. I'm trying to understand what you're willing to

464
00:23:51,160 --> 00:23:53,240
Speaker 8: give because this is such an important partnership.

465
00:23:54,880 --> 00:23:56,399
Speaker 4: I'll tell you what I'm not willing to give. I'm

466
00:23:56,440 --> 00:23:59,160
Speaker 4: not willing to give anything that will endanger israel security.

467
00:23:59,520 --> 00:24:02,960
Speaker 4: That I will not do. But I think there's enough

468
00:24:03,040 --> 00:24:06,720
Speaker 4: room to discuss possibilities. I don't think I think the

469
00:24:06,760 --> 00:24:10,280
Speaker 4: Palestinian thing is brought in all the time. It was

470
00:24:10,359 --> 00:24:14,240
Speaker 4: always brought in, and it's sort of a checkbox, you know,

471
00:24:14,320 --> 00:24:17,879
Speaker 4: you have to check it to say that you're doing it.

472
00:24:17,920 --> 00:24:20,760
Speaker 4: Is that what is being said in corridors? Is that

473
00:24:20,840 --> 00:24:25,480
Speaker 4: what is being said in discrete negotiations? Now you tell

474
00:24:25,520 --> 00:24:28,480
Speaker 4: me the answer is a lot less than you think.

475
00:24:28,720 --> 00:24:31,199
Speaker 8: Okay, So if you look at, for example, giving the

476
00:24:31,200 --> 00:24:34,080
Speaker 8: Palestinians their own state, is that something that you would

477
00:24:34,680 --> 00:24:35,520
Speaker 8: is that a red line?

478
00:24:35,600 --> 00:24:37,080
Speaker 4: It won't be their own state. It will be an

479
00:24:37,320 --> 00:24:41,960
Speaker 4: Iranian controlled state that will in an area that is

480
00:24:42,040 --> 00:24:46,479
Speaker 4: about the width of the Washington Beltway. You take Israel

481
00:24:46,680 --> 00:24:50,719
Speaker 4: and the Palestinian areas in Judas, Amaria, the West Bank together,

482
00:24:51,280 --> 00:24:53,960
Speaker 4: it's a little more than the width of the Washington Beltway.

483
00:24:54,240 --> 00:24:56,919
Speaker 4: You put a Palestinian state which will be controlled by

484
00:24:56,920 --> 00:25:00,440
Speaker 4: Iran in half of that, or a in the middle

485
00:25:00,480 --> 00:25:03,520
Speaker 4: of that. You won't have a Palestinian state, You'll have

486
00:25:04,680 --> 00:25:07,200
Speaker 4: an Iranian terrs state.

487
00:25:07,359 --> 00:25:12,000
Speaker 8: And of course, so under no circumstances would you love that.

488
00:25:12,359 --> 00:25:14,479
Speaker 4: Now, what I said often is that the way that

489
00:25:14,560 --> 00:25:18,160
Speaker 4: I would have a solution is two things about that.

490
00:25:18,320 --> 00:25:21,879
Speaker 4: One that the Palestinians should have all the powers to

491
00:25:21,920 --> 00:25:24,919
Speaker 4: govern themselves and none of the powers to threaten Israel.

492
00:25:25,160 --> 00:25:28,240
Speaker 4: This means that in whatever final settlement, peace settlement we

493
00:25:28,320 --> 00:25:33,720
Speaker 4: have with the Palestinians, Israel remains the over I would

494
00:25:33,720 --> 00:25:37,840
Speaker 4: say Israel has the overriding security power in the entire

495
00:25:37,880 --> 00:25:42,199
Speaker 4: area ours and theirs. Otherwise we collapse, they collapse.

496
00:25:43,080 --> 00:25:45,639
Speaker 8: You're going to Unga in New York. I believe the

497
00:25:45,800 --> 00:25:48,240
Speaker 8: second week or third week of September. Will you meet

498
00:25:48,280 --> 00:25:48,960
Speaker 8: with Donald Trump?

499
00:25:49,920 --> 00:25:53,800
Speaker 4: I don't know the first. You're the first, You're the

500
00:25:53,800 --> 00:25:56,240
Speaker 4: first who suggested it. No, I haven't.

501
00:25:56,760 --> 00:25:59,199
Speaker 8: Are you expecting an invitation to the White House from

502
00:25:59,200 --> 00:25:59,879
Speaker 8: President Biden?

503
00:26:00,119 --> 00:26:02,399
Speaker 4: Well, he said that we are good to be, so

504
00:26:02,640 --> 00:26:03,600
Speaker 4: I'll leave it up to him.

505
00:26:04,000 --> 00:26:06,320
Speaker 8: What are you most excited for going to.

506
00:26:06,240 --> 00:26:11,560
Speaker 4: Aunga, Well, I've been there many years here. What am

507
00:26:11,560 --> 00:26:17,439
Speaker 4: I most excited about the possibility of broadening the already

508
00:26:17,600 --> 00:26:20,640
Speaker 4: historic Abraham Accords. I think this will be this will

509
00:26:20,720 --> 00:26:23,280
Speaker 4: change history. I think it will not only end the

510
00:26:23,440 --> 00:26:27,080
Speaker 4: Arab Israeli conflict, not the Palestinian Israeli conflict, but our

511
00:26:27,119 --> 00:26:29,560
Speaker 4: conflict with ninety eight percent of the Arab world. It

512
00:26:29,560 --> 00:26:33,199
Speaker 4: will also, I think, create a new piece between the

513
00:26:33,280 --> 00:26:35,040
Speaker 4: Jewish state and the Muslim world.

514
00:26:35,240 --> 00:26:37,680
Speaker 8: Prime Minister, the countries of the Abraham Accords, some of

515
00:26:37,720 --> 00:26:39,720
Speaker 8: them have been frustrated, right about some of the noise

516
00:26:39,720 --> 00:26:42,680
Speaker 8: that's been coming out of your government. Will you meet

517
00:26:42,680 --> 00:26:44,200
Speaker 8: with them to try and reassure them.

518
00:26:44,560 --> 00:26:47,240
Speaker 4: Well, we meet with them all the time, and we

519
00:26:47,320 --> 00:26:49,520
Speaker 4: reassure them all the time. But I think I think

520
00:26:50,160 --> 00:26:52,359
Speaker 4: some of them are habituated to the fact that noise

521
00:26:52,440 --> 00:26:54,680
Speaker 4: is noise, and I think that's true of the market's too.

522
00:26:54,720 --> 00:26:56,760
Speaker 4: There's a lot of noise in the market. But if

523
00:26:56,800 --> 00:26:59,199
Speaker 4: you look at the fundamentals of issuel, if you look

524
00:26:59,240 --> 00:27:02,440
Speaker 4: at the growth rate which is double the United States expected.

525
00:27:02,480 --> 00:27:04,680
Speaker 4: Now you look at the deficit which is one point

526
00:27:04,720 --> 00:27:08,000
Speaker 4: five at most percent compared to five point five percent

527
00:27:08,040 --> 00:27:10,159
Speaker 4: in the US. If you look at the debt to

528
00:27:10,240 --> 00:27:12,800
Speaker 4: GDP which is sixty percent, which is less than one

529
00:27:12,840 --> 00:27:15,040
Speaker 4: hundred percent in the US, and you know what it's

530
00:27:15,119 --> 00:27:17,879
Speaker 4: like in the EU. And if you look at if

531
00:27:17,920 --> 00:27:20,760
Speaker 4: you look at the investments, I mean in Nvidio builds here,

532
00:27:20,800 --> 00:27:24,520
Speaker 4: the supercomputer. Intel just puts twenty five billion dollars.

533
00:27:24,200 --> 00:27:26,200
Speaker 8: For a reach plastics longer term.

534
00:27:26,720 --> 00:27:30,480
Speaker 4: But that's my point that there's noise in the short

535
00:27:30,520 --> 00:27:33,760
Speaker 4: term markets, there's clarity in the long term markets. I mean,

536
00:27:34,680 --> 00:27:38,920
Speaker 4: now Amazon just invests seven billion in cloud services here,

537
00:27:38,920 --> 00:27:41,080
Speaker 4: Why are they doing that? Because they know something I'm

538
00:27:41,080 --> 00:27:43,320
Speaker 4: going to do and the thing that I'm going to do,

539
00:27:43,400 --> 00:27:45,760
Speaker 4: and I like to bring it to your investors attention.

540
00:27:46,840 --> 00:27:49,080
Speaker 4: A few years ago, ten years ago, I decided that

541
00:27:49,160 --> 00:27:51,159
Speaker 4: Israel would be one of the ten cyber powers in

542
00:27:51,200 --> 00:27:54,239
Speaker 4: the world, one of the five. We've become one of

543
00:27:54,280 --> 00:27:58,160
Speaker 4: the more than five higher than that. Now. I think

544
00:27:58,240 --> 00:28:00,800
Speaker 4: that what we're going to do is and what I'm

545
00:28:00,880 --> 00:28:07,600
Speaker 4: organizing is government, a government policy, and a government board

546
00:28:08,320 --> 00:28:12,320
Speaker 4: with money to make Israel one of the three top

547
00:28:12,560 --> 00:28:13,640
Speaker 4: ai powers in the world.

548
00:28:14,080 --> 00:28:16,120
Speaker 8: What do you say to investors that worry that you've

549
00:28:16,200 --> 00:28:17,600
Speaker 8: changed in terms of priorities?

550
00:28:18,080 --> 00:28:23,320
Speaker 4: Haven't? My priorities are peace, prosperity, and security. I think

551
00:28:23,359 --> 00:28:27,400
Speaker 4: that they're all dependent on prosperity to have the ability

552
00:28:27,440 --> 00:28:31,600
Speaker 4: to fund the defense needs that we have and to

553
00:28:31,640 --> 00:28:35,879
Speaker 4: expand the peace. The prosperity is based on Israel's supreme

554
00:28:36,320 --> 00:28:40,640
Speaker 4: technological prowess. We are you know, people rated a seventh

555
00:28:40,680 --> 00:28:43,320
Speaker 4: on the AI on the AI list, you know why

556
00:28:43,600 --> 00:28:47,120
Speaker 4: because of the absence of government policy. I'm changing that

557
00:28:47,280 --> 00:28:52,280
Speaker 4: and I'm going to announce in about six weeks the

558
00:28:52,320 --> 00:28:57,240
Speaker 4: government policy, the organization, the project leader for a host

559
00:28:57,280 --> 00:29:01,920
Speaker 4: of civilian and military AI that will thrust Israel right

560
00:29:02,040 --> 00:29:05,040
Speaker 4: up there. If you're an investor and you're not seeing

561
00:29:05,760 --> 00:29:09,720
Speaker 4: that the added value that is going to accrue to

562
00:29:10,120 --> 00:29:13,640
Speaker 4: national economies is based on their ability to generate AI

563
00:29:13,760 --> 00:29:17,680
Speaker 4: and users, I use This is not hype. This is Israel,

564
00:29:17,760 --> 00:29:18,720
Speaker 4: and we have done.

565
00:29:18,720 --> 00:29:20,480
Speaker 8: Worried about the shorter term. But thank you so much

566
00:29:20,480 --> 00:29:20,960
Speaker 8: for your time.

567
00:29:21,040 --> 00:29:25,120
Speaker 4: Oh bust, but remember this, here's a good one. This

568
00:29:25,200 --> 00:29:28,520
Speaker 4: is recorded today. All right, now we should look at

569
00:29:28,920 --> 00:29:31,720
Speaker 4: one year from now. That's pretty short term and we'll see.

570
00:29:32,600 --> 00:29:34,840
Speaker 4: Was I right in telling you that Israel right now

571
00:29:34,960 --> 00:29:38,719
Speaker 4: is undervalued? You should invest in Israel. Smart money is

572
00:29:38,720 --> 00:29:41,760
Speaker 4: coming into his will now like these big firms, because

573
00:29:41,800 --> 00:29:44,200
Speaker 4: they understand that we're going to a good place.

574
00:29:46,680 --> 00:29:49,760
Speaker 13: This is Bloomberg Daybreak Today, your morning brief on the

575
00:29:49,800 --> 00:29:53,200
Speaker 13: stories making news from Wall Street to Washington and beyond.

576
00:29:53,560 --> 00:29:56,560
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577
00:29:56,720 --> 00:30:00,960
Speaker 2: Eastern each morning on Apple Spotify, and anywhere else you

578
00:30:01,000 --> 00:30:02,120
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579
00:30:02,440 --> 00:30:05,120
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580
00:30:05,160 --> 00:30:07,760
Speaker 13: am Wall Street Time on Bloomberg eleven three to zero

581
00:30:07,840 --> 00:30:11,280
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582
00:30:11,320 --> 00:30:14,360
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583
00:30:14,440 --> 00:30:15,400
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584
00:30:15,680 --> 00:30:19,240
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585
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586
00:30:24,840 --> 00:30:27,720
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588
00:30:31,720 --> 00:30:32,960
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589
00:30:33,000 --> 00:30:34,280
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590
00:30:34,200 --> 00:30:35,160
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591
00:30:35,560 --> 00:30:38,560
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592
00:30:38,640 --> 00:30:42,080
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