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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: Amy, we begin with breaking developments in the war in

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Speaker 3: the Middle East. The US has now conducted military strikes,

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Speaker 3: and we get more from Bloomberg's Rosalind mathieson.

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Speaker 4: The US has struck two targets, they say inside Syria.

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Speaker 4: They say they were aiming at Iran's Islamic Revolutionary Guard

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Speaker 4: and basically a warning again to some of these proxy

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Speaker 4: groups that are operating in the region potential on behalf

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Speaker 4: of Iran, because what we've seen is an escalation the

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Speaker 4: pattern of attacks or targeting of US military assets in

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Speaker 4: the region.

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Speaker 3: Bloomberg's Rosalind Mathison says Defense Secretary Lloyd Austin is characterized

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Speaker 3: in the US strikes as separate and distinct from the

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Speaker 3: Israel Hamas war.

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Speaker 2: And Nathan the strikes come as Iran's born minister warned

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Speaker 2: the US won't be spared if the war between Israel

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Speaker 2: and Hamas spreads. Born Minister Hossain Amir abdo Lahi and

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Speaker 2: delivered the threat in a speech to the United Nations

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Speaker 2: General Assembly.

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Speaker 5: We do not welcome to expansion of the war in

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Speaker 5: the region, but are you all If the genocide in

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Speaker 5: Gasse continues, they will not be spared from this fire.

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Speaker 2: The comments by Iran's foreign minister comes as Israel says

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Speaker 2: it sent troops on a limited raid into Gaza for

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Speaker 2: the second straight night.

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Speaker 3: Now amy to the latest on the deadly mass shooting

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Speaker 3: in Maine, an intense search continues for Robert Card, the

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Speaker 3: forty year old Army reservist accused of killing eighteen people

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Speaker 3: inside a bowling alley and bar in the city of Lewiston.

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Speaker 3: The city's mayor, Carl Shalen, is telling people to stay

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Speaker 3: off the streets.

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Speaker 6: This is the time for action, solidarity and support. Please

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Speaker 6: take note the shelter and place order issued by the

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Speaker 6: Lewiston Police Department remains in effect. Please stay at home

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Speaker 6: and be safe.

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Speaker 3: Lewiston Mayor Carl Shalen says much of the focus has

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Speaker 3: been one of cards relatives' homes in the rural town

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Speaker 3: of Boden f Behind. Other agents surrounded the property, ordering

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Speaker 3: anyone in Scientist surrender after several hours, though state police

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Speaker 3: said it was not clear if anyone had been there.

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Speaker 2: The newly anointed Speaker of the House is commenting about

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Speaker 2: the latest deadly shooting. Mike Johnson does not think it's

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Speaker 2: a gun problem the end.

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Speaker 7: Of the day, it's the problem is the human heart.

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Speaker 7: It's not guns, not the weapons. At the end of

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Speaker 7: the day, we have to protect the right of the

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Speaker 7: citizens to protect themselves and that's the Second Amendment and

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Speaker 7: that's why our party sends show strongly for that.

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Speaker 2: Speaker Johnson made the comments in an interview with Fox's

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Speaker 2: Sean Hennity and said that now is not the time

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Speaker 2: for new gun laws.

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Speaker 3: I Meanwhile, Amy the House passed its first major piece

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Speaker 3: of legislation since Johnson became Speaker, and it flies in

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Speaker 3: the face of President Biden's emphasis on energy efficiency. Bloomberg

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Speaker 3: zed Baxter has the story.

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Speaker 8: It cuts into the Inflation Reduction Act, which incentivized homeowners

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Speaker 8: to switch to more energy efficient appliances, and into money

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Speaker 8: that helps stage craft more stringent building energy codes. The

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Speaker 8: effect of this which strip billions of dollars put aside

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Speaker 8: for consumer rebates. Speaker Mike Johnson in the past has

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Speaker 8: criticized the spending on climate and clean energy measures as

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Speaker 8: green energy slush funds. It's not expected to pass the

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Speaker 8: Senate or get a Biden's signature ad Baxter Bloomberg Radio, Thank.

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Speaker 2: You ed Now. An update on the trial of Sam

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Speaker 2: Bankman Freed. The FDx founder, spent almost three hours trying

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Speaker 2: to convince a judge to allow him to testify to

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Speaker 2: a jury about the role lawyers played in the collapse

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Speaker 2: of the crypto exchange. Bloomberg's Bob van Vories is covering

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Speaker 2: the case in Lower Manhattan.

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Speaker 9: He spent the entire afternoon on the spand but he

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Speaker 9: was previewing testimony that he wants to give relating to

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Speaker 9: advice that he got from lawyers. So Judge Kaplan is

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Speaker 9: listened to the testimony. It's going to rule in the morning.

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Speaker 9: What the jury gets to hear. They got sent home

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Speaker 9: after lunch.

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Speaker 2: Bloomberg's Bob van Voris says, Bank and Freed's team is

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Speaker 2: trying to show many of the transactions are the subject

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Speaker 2: of criminal charges conducted in the full view of lawyers.

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Speaker 3: Turning to markets, Amy Watch and shares of Amazon, they

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Speaker 3: are hired by more than five percent in early trading.

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Speaker 3: The company gave investors a lot of what they wanted

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Speaker 3: this earning season, robust sales and profit growth, along with

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Speaker 3: a hint that the cloud division earnings machine is regaining momentum.

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Speaker 3: Matthew Bloxham is a tech analyst for Bloomberg Intelligence.

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Speaker 10: They are the leader in cloud, so there's a huge

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Speaker 10: number of corporates who already use them for cloud, and

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Speaker 10: those corporates are all scrambling to get into the genes

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Speaker 10: of AI space, so they're kind of looking to train

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Speaker 10: models and use them in applications.

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Speaker 3: Bloomberg Intelligence, as Matt Bloxham says, cloud unit sales increase

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Speaker 3: twelve percent. More than twenty three billion dollars.

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Speaker 2: Shares of Intel also on the move, up nearly eight percent.

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Speaker 2: The chip maker is predicting a return to sales growth

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Speaker 2: in the fourth quarter. Intel says it's being fueled by

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Speaker 2: an improving personal computer market and a more competitive product line.

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Speaker 3: Turning to the economy, Amy Janet Yellen says the surgeon

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Speaker 3: treasury yields is tied to the strength of the economy

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Speaker 3: rather than the widening fiscal deficit. We spoke with the

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Speaker 3: Treasury Secretary in Washington.

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Speaker 11: We're seeing yields go up in most advanced countries. Part

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Speaker 11: of the increase in yields, I think is simply a

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Speaker 11: reflection of the strength of the economy the notion that

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Speaker 11: interest rates will be higher for longer.

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Speaker 3: Secretary Yellen says the trends that had produced low levels

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Speaker 3: for yields before the pandemic are still there. For the

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Speaker 3: full conversation, head to our Bloomberg Talks podcast feed find

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Speaker 3: it wherever you get your podcasts. And right now we

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Speaker 3: find the tenure treasury yield at four point eight six percent,

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Speaker 3: the two years at five point zero four, and futures

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Speaker 3: are surging. This morning, this is Bloomberg Time now to

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Speaker 3: take a look at some of the other stories making

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Speaker 3: news in New York and around the world. For that,

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Speaker 3: I'm joined by Bloomberg's Michael Barr.

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Speaker 12: Good morning, Michael, Good morning, Nathan. Representative George Santos's scheduled

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Speaker 12: to be a rain this morning on more charges filed

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Speaker 12: earlier this month. According to prosecutor, Santos allegedly stole identities

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Speaker 12: and made purchases on the credit cards of his donors. Meanwhile,

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Speaker 12: there is a push from New York Republicans to expel

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Speaker 12: Santos from Congress. Representative Anthony Desposito says Santos is not

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Speaker 12: fit to serve as constituents. As a United States representative.

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Speaker 13: People have seen over the last ten months what a

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Speaker 13: fraud he is. I mean, you know, you read either indictment,

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Speaker 13: there's a clear outline that lays out the fabrications, the lies,

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Speaker 13: the manipulation of donors and others that he has committed

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Speaker 13: over the last year or longer.

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Speaker 12: Audio courtesy of Forbes. D Esposito's resolution would need two

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Speaker 12: thirds of the House to expel the Long Island Congressman. Meanwhile, Santos,

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Speaker 12: who says he will not step down, responded on social

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Speaker 12: media saying that he is entitled to due process and

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Speaker 12: not a predetermined outcome as some are seeking. The NYPD

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Speaker 12: is on high alerts in case the suspected main mass

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Speaker 12: shooter tries to enter the tri state area. While there

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Speaker 12: is no evidence that suspect Robert Card is coming to

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Speaker 12: New York, it comes at a time when already counter

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Speaker 12: terrorism officers are on the streets because of the crisis

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Speaker 12: in the Middle East, and MYPD Commissioner Rebecca Winer, we

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Speaker 12: don't see.

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Speaker 14: Any neccess to New York City with this incident, tragic

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Speaker 14: as it was, but we've been saying this a lot

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Speaker 14: over the last couple of weeks, and we always do

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Speaker 14: we urge all New Yorkers to continue to go about

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Speaker 14: your business, but to remain alert to your surroundings.

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Speaker 12: Commissioner Winer join Mayor Eric Adams at a news conference

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Speaker 12: to discuss safety in the city. Amid the active search

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Speaker 12: for card There will be more than one hundred car

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Speaker 12: free streets to keep trick or treaters safe in New

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Speaker 12: York City this Halloween. The Trick or Streets Initiative is

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Speaker 12: being expanded to give access to pedestrians for safe spaces

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Speaker 12: across the five boroughs. The initiative that kicked off October

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Speaker 12: fourteenth at fifteen locations, where we expanded starting tomorrow, Global

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Speaker 12: news twenty four hours a day and whenever you want

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Speaker 12: it with Bloomberg News Now. I'm Michael Barr.

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Speaker 3: This is Bloomberg Natha Tricker Streets. That's a great idea.

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Speaker 3: Thank you, Michael. Now great news because we do bring

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Speaker 3: you news throughout the day here on Bloomberg Radio. But

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Speaker 3: now you can get the latest news on demand whenever

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Speaker 3: you want it. Subscribe to Bloomberg News Now to get

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Speaker 3: the latest headlines at the click of a button. Get

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Speaker 3: informed on your schedule, Listen and subscribe to Bloomberg News

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Speaker 3: now on the Bloomberg Business app, Bloomberg dot com, plus Apple, Spotify,

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Speaker 3: and anywhere else you get your podcasts. Time now for

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Speaker 3: the Bloomberg Sports Update, brought to you by tri State Outy.

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Speaker 3: Good morning, John stash Hour, Good morning. Eighth in this.

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Speaker 15: World series with two unlikely teams begins tonight. Both Arizona

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Speaker 15: and Texas lost over one hundred games just two years ago.

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Speaker 15: Both snuck into the postseason as a wild card, but

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Speaker 15: are nine and three allthough.

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Speaker 12: The Rangers are one and three at home eight no

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Speaker 12: on the road. Ain't arly.

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Speaker 15: They start Nathan Evaldi, who's four and oh in the postseason.

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Speaker 15: The Diamondbacks start Zach Gallon. The Bills are four and oh.

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Speaker 15: In Buffalo, they never trailed, beat the Bucks twenty four

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Speaker 15: to eighteen. Josh Allen threw for two touchdowns ran for another.

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Speaker 15: The Jets and Giants first played each other in nineteen

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Speaker 15: seventy Sunday's game only the fifteenth regular season meeting ever.

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Speaker 15: Giants lead the series eight to six. Jets have won

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Speaker 15: the last two. Last Giants win was twenty eleven. They

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Speaker 15: won the Super Bowl that year. Here's Jets coach Rob Sala.

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Speaker 16: I'm excited about You said it's once every four years.

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Speaker 16: Maybe there's a crossover now at the seventeenth game. But

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Speaker 16: you know, I think it's really cool for the fans.

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Speaker 16: I think it's great for sports talk radio and all

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Speaker 16: the different newspaper outlets and all that. But you know,

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Speaker 16: it's a championship opportunity. You know, a lot of respect

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Speaker 16: for them. They've got a tremendous history.

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Speaker 15: Of Salla's backup running back is veteran Dalvin Cook plays

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Speaker 15: behind Breeze Hall. Cook says he's frustrated being the backup,

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Speaker 15: might want a trade before next week's deadline. A five

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Speaker 15: game road trip for the Rangers. They won the first

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Speaker 15: three and of a lot only two goals the shutout

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Speaker 15: for Jonathan Quick and Edmonton. Rangers won three nothing. Islanders

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Speaker 15: beat Atawa three two. Damian Lillard's first game for the

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Speaker 15: Bucks in Milwaukee port in thirty nine points and a

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Speaker 15: one point win over the Sixers. The Lakers, bree Phoenix

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Speaker 15: Nixon Nets began with losses at home. They're on the

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Speaker 15: road tonight, Nicks in Atlanta. Nets are in Dallas. They'll

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Speaker 15: face the X next.

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Speaker 3: Tyler RD Johns, Dashawl Bloomberg Sports Nathan. All right, John, Thanks.

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Speaker 3: Bloomberg Sports is brought to you by Audi. Don't let

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Speaker 3: someone else drive off in the Audi model you've always wanted.

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Speaker 3: Visit your local Tri state AUDI dealer to get behind

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Speaker 3: the wheel of yours today, or visit audioffers dot com

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Speaker 3: for more information. A debrief on the Israel Hamas War. Next,

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Speaker 3: we're gonna check in with Bloomberg's Israel Bureau chief Ethan

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Speaker 3: Brunner in Tel Aviv, from.

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Speaker 12: Coast to coast, from New York to San Francisco, Boston

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Speaker 12: to Washington, DC, nationwide on Syrias XAM, the Bloomberg Business

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Speaker 12: app in Bloomberg dot com.

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Speaker 3: This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. The

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Speaker 3: world is watching for the next phase in the Israel

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Speaker 3: Hamas War. Israel has carried out ground rates in Gaza

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Speaker 3: for a second straight night, and now the US is

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Speaker 3: targeting are striking targets in Syria that it says have

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Speaker 3: been used by Iran and its proxy groups for the

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Speaker 3: latest We are joined by Bloomberg's Israel Bureau chief Ethan

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Speaker 3: Bronner in Tel Aviv. Ethan, good morning. What more can

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Speaker 3: we say now about this latest military activity, not just

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Speaker 3: by Israel but now apparently the United States.

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Speaker 17: Yes, well, I mean, what we can say is that

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Speaker 17: these are a small piece of evidence of the risk

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Speaker 17: of a spreading conflict, of the fact that Iranian proxies

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Speaker 17: around the region, not just Hamas in Gaza, are at work,

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Speaker 17: and that a combined force of Israel in the United

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Speaker 17: States seeking to sort of keep them in their place,

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Speaker 17: as it were, as opposed to letting it get truly

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Speaker 17: out of hand. The Americans have absolutely heightened their military

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Speaker 17: profile in the region. The Eisenhower is on the way

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Speaker 17: to the Eastern metag should be here by Monday. There's

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Speaker 17: a whole bunch of Patriot missiles, a whole bunch of

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Speaker 17: troops as well, and Israel is trying to decide what

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Speaker 17: it's going to do in Gaza. I think it's become

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Speaker 17: an increasingly anguished decision because of those two hundred plus hostages,

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Speaker 17: because of the concern that victory is hard to define,

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Speaker 17: and because even though people are humiliated and furious about

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Speaker 17: what happened in October seventh, the question of how many

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Speaker 17: casualties Israel truly wants to take in this far from clear.

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Speaker 3: And to that point, Ethan there has to be some

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Speaker 3: thinking on the Israeli part about how to continue to

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Speaker 3: keep Allied support given how fierce the response has been

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Speaker 3: on the Israeli side following that October seventh attack by Hamas.

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Speaker 17: Look, I think that's true, I mean absolutely. I wrote

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Speaker 17: a story a couple of days ago about the sense

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Speaker 17: that Israel has that it is increasingly alone in its

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Speaker 17: view of the legitimacy of what it's doing. It's not

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Speaker 17: alone alone, and that the United States has been a

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Speaker 17: standing shoulder or shoulder with it. The Europeans have come

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Speaker 17: through and have said, we feel your pain, we understand,

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Speaker 17: we agree AMAS is a terrible organization needs to be dismantled.

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Speaker 17: But what does that really mean? And at what cost?

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Speaker 17: And what about these seven thousand dead people in Gaza?

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Speaker 17: And I think even the United States feels a way,

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Speaker 17: and even people in Israel to some extent are beginning

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Speaker 17: to ask what does it mean to do? What is

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Speaker 17: the right thing to do? And I don't think they've

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Speaker 17: figured it out. There is a sense here that unless

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Speaker 17: AMAS is ultimately dismantled, that that life here will not

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Speaker 17: be tolerable, that people will not stay, people not live

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Speaker 17: along the border, and that is not something that's acceptable.

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Speaker 17: But what does it mean on what time and what

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Speaker 17: time frame Israel needs to do this, I think is

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Speaker 17: the key. In addition to the concern that Hisbella and

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Speaker 17: other Iranian back groups could enter the frame and.

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Speaker 3: At the same time, Ethan, we've heard from Israel that

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Speaker 3: the strikes that have been carried out have continued to

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Speaker 3: take out HUMAS leadership. I think one of the latest

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Speaker 3: reports was that a deputy director of HUMAS has been

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Speaker 3: killed in one of the latest strikes. Is there a

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Speaker 3: sense that taking out the leadership is achieving some of

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Speaker 3: the objectives that Israel is setting out here?

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Speaker 17: Well, I mean, I don't know that we're there yet.

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Speaker 17: That's absolutely Israel's contention. And they've set up, in fact,

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Speaker 17: within the security system a kind of a squad that's

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Speaker 17: going to take it upon itself over the next year

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Speaker 17: or two or three to take guys out who've led HUMAS,

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Speaker 17: whether they're in Gaza or in Katar, or in Lebanon

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Speaker 17: or in Turkey. There's a kind of assassination squad that's

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Speaker 17: been set up, and they're also going after them inside.

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Speaker 17: Does it make a difference, It must make a difference,

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Speaker 17: But you know, they're spread around. There are a lot

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Speaker 17: of them, and it's very hard to the impression one

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Speaker 17: gets at the moment is that it's sort of middle

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Speaker 17: management that they've been able to get, not the top guys.

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Speaker 17: So I don't know how big a difference it's making.

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Speaker 3: Appreciate you coming back on with us, Ethan, and keeping

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Speaker 3: us up to speed on all the developments that have

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Speaker 3: been happening in the Israel Humas War now with these

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Speaker 3: US strikes into Syria as well. Ethan Browner are Israel

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Speaker 3: bureau chief for Bloomberg News, joining us this morning from

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Speaker 3: Tel Aviv. And now we want to turn to a

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Speaker 3: conversation with Treasury Secretary Janet Yellen. She joined Bloomberg Washington

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Speaker 3: Bureau chief Peggy Collins for a wide ranging conversation after

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Speaker 3: we saw a third quarter GDP in the US grow

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Speaker 3: at its fastest pace in nearly two years. Secretary Yellen

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Speaker 3: talked about that blowout economic figure as well as rising

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Speaker 3: bond yields and geopolitical risks. Let's go to part of

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Speaker 3: that discussion.

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Speaker 11: Now, it's a good strong number and it shows an

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Speaker 11: economy that's doing very well. Let's remember it is just

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Speaker 11: one quarter's number, and I'm not expecting a growth at

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Speaker 11: that pace to continue. But we do have good, solid growth.

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Speaker 11: You know, probably the year will come in close to

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Speaker 11: two and a half. I wouldn't be surprised if we

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Speaker 11: see that we have solid job creation, a low unemployment rate,

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Speaker 11: increased engagement in the labor force, inflation's coming down, and

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Speaker 11: you don't really see any sign of recession here.

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Speaker 18: I have to say, I've been saying.

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Speaker 11: For a long time that I believed there was a

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Speaker 11: path to bring inflation down in the context of a

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Speaker 11: strong labor market. Frankly, it's only it's about a year

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Speaker 11: ago since I believe a Bloomberg model predicted that by

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Speaker 11: October of.

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Speaker 18: Twenty twenty three.

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Speaker 11: Now, namely that you saw at the odds of recession

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Speaker 11: at one hundred percent.

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Speaker 18: I don't think we have that. You know, what we

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Speaker 18: have looks like.

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Speaker 11: Is soft landing with very good outcomes for the US economy.

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Speaker 11: So I think there's a lot to be pleased to beat.

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Speaker 11: And you see good strong consumer spending. Consumers still have

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Speaker 11: substantial wealth. I think it's supporting good strong spending and

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Speaker 11: the economy is doing well, and I think US growth

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Speaker 11: is making a contribution to stronger global outcomes as well.

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Speaker 19: So I want to ask you a little bit about

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Speaker 19: the rise in yields that we've seen. We've seen yield

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Speaker 19: surging over the last few weeks. The ten year treasury

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Speaker 19: rose above five percent earlier this week. What's your view

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Speaker 19: on what is driving that surgeon yields and how much

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Speaker 19: of it is connected to investors' concerns about the US deficit.

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Speaker 11: Well, I don't think much of it is connected to that.

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Speaker 11: This is a global phenomenon in advanced countries where seeing

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Speaker 11: yields go up in most advanced countries of the world largely,

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Speaker 11: I think it's a reflection of the resilience that people

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Speaker 11: are seeing in the US economy, that we're not having.

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Speaker 18: A recession, that consumer.

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Speaker 11: Spending and demand continue to be strong, The economy is

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Speaker 11: continuing continuing to show tremendous robustness, and that suggests that

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Speaker 11: interest rates are likely to stay higher for longer. And

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Speaker 11: so part of the increase in yields I think is

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Speaker 11: simply a reflection of the strength of the economy, the

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Speaker 11: notion that interest rates will be higher for longer.

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Speaker 18: Now, whether or not.

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Speaker 11: That's really true if we look at five or ten years,

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Speaker 11: what are interest rates likely to do? Honestly, for a

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Speaker 11: very long time, we've felt that interest rates over decades

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Speaker 11: had been coming down real interest rates, and there were

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Speaker 11: deep structural reasons for that, in part relating to demographics

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Speaker 11: and those underlying trends. They're still there, they're still in force.

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Speaker 11: So I think it's perfectly possible that we will see

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Speaker 11: longer term yields come down, but nobody really knows for sure.

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Speaker 11: But I see the higher yields as certainly importantly a

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Speaker 11: reflection for stronger economy.

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Speaker 19: I know you took a trip to China in big

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Speaker 19: to Beijing this summer. You've been talking about how our

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Speaker 19: policy should really be around de risking or diversifying rather

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Speaker 19: than decoupling. But what do you think is the current

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Speaker 19: status of that. Do you think the Chinese have adopted

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Speaker 19: that and feel like they can trust us on that front,

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Speaker 19: or do you think they still really think that we're

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Speaker 19: in a competition with them first and foremost.

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Speaker 11: So, I mean we've articulated a strategy. As you said,

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Speaker 11: it involves de risking in some areas where we're overly

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Speaker 11: dependent on China, and clean energy is a good example.

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Speaker 11: We also intend to focus on national security.

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Speaker 18: That's an area.

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Speaker 11: That we're not willing to compromise on, and so we

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Speaker 11: have We do have export controls. We continue to review

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Speaker 11: them with We're working on a set of restrictions on

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Speaker 11: outbound investment to China. We've discussed this with them and

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Speaker 11: put out a proposal that's in the public domain. I

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Speaker 11: think comments just closed on it. But our objective there

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Speaker 11: is to target what we do as narrowly as possible

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Speaker 11: so that it really focuses on national security, that it

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Speaker 11: is not an intention in that to harm the prospects

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Speaker 11: of Chinese economic development and the welfare of the Chinese people.

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Speaker 19: With the Israel Hamas war happening in the Middle East,

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Speaker 19: I think there's a concern by some that the war

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Speaker 19: could spread or expand to broader in the region. I

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Speaker 19: know that that's not your base case, but if that

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Speaker 19: was to happen, could you walk us through your wrist

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Speaker 19: scenario for what that might mean to the global economy.

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Speaker 11: My focus is, I look now at what's happening to

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Speaker 11: the Middle East. Really is the tragedy, the human tragedy

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Speaker 11: that's taking place with the Israelis have suffered, and of

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Speaker 11: course we're worried about casualties in Gaza as Israel.

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Speaker 18: Pursues its war against Tamas.

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Speaker 11: So far, I would say we've not yet seen much

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Speaker 11: that has global consequences. What could happen if the war expands.

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Speaker 11: Of course, there could be more meaningful consequences, but I

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Speaker 11: think it's premature to speculate against about those, and I

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Speaker 11: think our focus should be keeping this contained and not spreading.

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Speaker 3: And that was the Secretary of the Department of the Treasury,

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Speaker 3: Janet Yellen, speaking with Bloomberg's Peggy Collins from our Washington newsroom.

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Speaker 3: You could hear that entire conversation on the Bloomberg Talks podcast.

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Speaker 3: Download the show in all of our high profile discussions

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