WEBVTT - Bloomberg Businessweek Weekend - November 17th, 2023 0:00:01.360 --> 0:00:05.680 This is Bloomberg business Week Inside from the reporters and 0:00:05.880 --> 0:00:09.840 editors who bring you America's most trusted business magazine, plus. 0:00:09.520 --> 0:00:12.000 Global business, finance and tech news. 0:00:12.200 --> 0:00:16.279 The Bloomberg Business Week Podcast with Carol Messer and Tim 0:00:16.320 --> 0:00:19.000 Stenebeck from Bloomberg Radio. 0:00:20.400 --> 0:00:23.520 Hi, everyone, Welcome to the Bloomberg Business Week Weekend Podcast. 0:00:23.880 --> 0:00:27.040 A very busy few days in global markets on Capitol 0:00:27.120 --> 0:00:30.280 Hill and in geopolitics in the US, we got data 0:00:30.320 --> 0:00:33.880 showing inflation easing and growth softening, and we also saw 0:00:33.920 --> 0:00:36.600 Congress coming to terms on a temporary funding measure to 0:00:36.640 --> 0:00:38.160 avert a government shutdown. 0:00:38.320 --> 0:00:41.400 The agreement delayed a partisan clash over federal spending until 0:00:41.440 --> 0:00:44.400 the new year, well leaving out emergency a to allies 0:00:44.479 --> 0:00:46.839 Ukraine and israel I had this hour, we'll look at 0:00:46.840 --> 0:00:49.960 the Warren Gaza through an economic lens and then discuss 0:00:50.000 --> 0:00:52.880 what hundreds of global leaders fear most as the two 0:00:52.920 --> 0:00:53.560 hot wars. 0:00:53.680 --> 0:00:56.720 Ray John Overshadowing all of that, however, was the San 0:00:56.720 --> 0:01:00.000 Francisco summit between US President Joe Biden and his Chinese 0:01:00.080 --> 0:01:03.440 counterpart Ji Jimping, And that is where we begin. 0:01:03.760 --> 0:01:07.160 After an hour's long meeting Wednesday, she dined with business 0:01:07.240 --> 0:01:10.959 leaders alongside the Apex Summit and made some welcome remarks, 0:01:11.160 --> 0:01:13.680 saying China wants to be friends with the United States. 0:01:13.920 --> 0:01:16.640 He also stated that his nation won't fight a cold 0:01:16.680 --> 0:01:18.920 or hot war with anyone. It was one of his 0:01:18.959 --> 0:01:22.759 clearest remarks yet, proclaiming a desire for peaceful ties between 0:01:22.800 --> 0:01:24.520 the world's two largest economies. 0:01:24.600 --> 0:01:27.920 President Biden meanwhile said the talks yielded progress and repairing 0:01:27.959 --> 0:01:31.720 strained ties between the two superpowers, while reiterating that he 0:01:31.880 --> 0:01:35.319 considers you a dictator in an apparent off the cuff 0:01:35.360 --> 0:01:37.320 from Mark. But keep in mind, apparently it's not the 0:01:37.360 --> 0:01:39.920 first time he has said that, basically making the distinction 0:01:40.400 --> 0:01:42.840 between how the Chinese government is run and how the 0:01:42.920 --> 0:01:45.600 US government is run. Well, a lot to digest here 0:01:45.640 --> 0:01:48.120 and to help us interpret what we saw and heard 0:01:48.160 --> 0:01:51.440 from the two leaders. We welcome back David Riedl. He's 0:01:51.480 --> 0:01:54.400 president and founder of Retal Research Group. David, really great 0:01:54.440 --> 0:01:59.120 to have you back so timely. This meeting significant or 0:01:59.200 --> 0:02:01.720 just a photo op, which many would also say has 0:02:01.880 --> 0:02:04.559 value in seeing these two leaders together and on US 0:02:04.600 --> 0:02:07.040 soil specifically, Yeah. 0:02:06.880 --> 0:02:10.720 That's exactly right. I'm not denigrating the photo op. That's 0:02:10.760 --> 0:02:13.320 an important part of diplomacy. But I think some important 0:02:13.360 --> 0:02:15.880 things have happened here. I think a floor has been 0:02:15.919 --> 0:02:20.040 put in the relationship. I think things stop getting worse, 0:02:20.800 --> 0:02:23.679 and I think we have the building blocks of recreating 0:02:23.720 --> 0:02:27.520 at least a functioning US China relationship, which is very 0:02:27.560 --> 0:02:30.160 important for us, for them, and for the rest of 0:02:30.200 --> 0:02:30.600 the world. 0:02:30.919 --> 0:02:34.079 Well point out what in the past couple of years 0:02:34.080 --> 0:02:36.880 has not been functioning, and what you think now that 0:02:36.880 --> 0:02:39.359 there is a floor in the relationship will start functioning soon. 0:02:39.480 --> 0:02:43.440 David Well, the most dangerous thing is ongoing disputes in 0:02:43.480 --> 0:02:44.960 the South China Sea and in. 0:02:44.919 --> 0:02:46.040 The Taiwan Straits. 0:02:46.240 --> 0:02:50.000 You may remember that China lost an international court ruling 0:02:50.120 --> 0:02:52.960 that they ate where they lay claim to most of 0:02:53.000 --> 0:02:55.120 the South China Sea all the way to the borders 0:02:55.120 --> 0:02:59.000 with the Philippines and Vietnam and other allies of the US, 0:02:59.520 --> 0:03:02.200 really saying that that is essentially part of their country 0:03:02.720 --> 0:03:06.400 and no one should pass through it without their permission. Also, 0:03:06.400 --> 0:03:09.120 the Taiwan Straits, they've determined that that is what they 0:03:09.160 --> 0:03:13.440 consider an inland waterway which is part of their country. 0:03:13.800 --> 0:03:15.920 And those are things, of course, that the US strongly 0:03:16.000 --> 0:03:18.079 disagrees with, as does most of the rest of the world, 0:03:18.400 --> 0:03:22.320 and they've been conducting these freedom of navigation acts, which 0:03:22.360 --> 0:03:27.440 have really rankled China because we've continued to sail warships 0:03:27.440 --> 0:03:29.560 through both the Straits and the South China See and 0:03:29.600 --> 0:03:31.880 that's caused a lot of problems. That's actually one of 0:03:31.919 --> 0:03:35.080 the more important things that was accomplished here begin the 0:03:35.240 --> 0:03:38.720 re establishment of military communications. So I think the first 0:03:38.760 --> 0:03:42.240 thing that's hopefully off the table is some sort of miscoup, 0:03:42.360 --> 0:03:47.200 calculation or accident or problem that results in an actual 0:03:47.240 --> 0:03:50.640 military conflict because of an accident in one of those 0:03:50.680 --> 0:03:51.440 two areas. 0:03:51.680 --> 0:03:53.360 That's something that's gone really wrong. 0:03:53.840 --> 0:03:58.280 Trade policy, other things about rhetoric in both political systems 0:03:58.520 --> 0:04:01.520 have been troublesome but real. The danger in the South 0:04:01.600 --> 0:04:04.600 China Sea and the Taiwan Straight has been my main concern. 0:04:05.320 --> 0:04:08.720 So, like a relationship that goes bad, you can have 0:04:08.760 --> 0:04:11.880 where the two individuals don't talk, or at least they're talking, 0:04:12.040 --> 0:04:13.480 and so you get to a better way. 0:04:13.560 --> 0:04:15.120 Is that kind of where we are with the US 0:04:15.120 --> 0:04:16.039 and China right now. 0:04:16.920 --> 0:04:18.960 That's exactly right, and they're talking at every level. 0:04:19.000 --> 0:04:20.920 You know, it's important that Biden and She sit down, 0:04:21.120 --> 0:04:23.480 but it's also important that the high level officials, sit down, 0:04:23.600 --> 0:04:27.000 middle level officials, people up and down the trade and 0:04:27.080 --> 0:04:31.200 commerce arena as well as the military arena. So communication 0:04:31.320 --> 0:04:36.200 and connection at every level is critical to avoiding a problem. 0:04:35.520 --> 0:04:37.680 Panda diplomacy that is going to go there. 0:04:37.920 --> 0:04:38.800 We lost the look we. 0:04:38.760 --> 0:04:40.719 Have had the pandas leaving the US been here for 0:04:40.760 --> 0:04:42.320 decades now maybe coming back. 0:04:42.400 --> 0:04:44.559 Are we right to laugh? Or that sharing of something 0:04:44.600 --> 0:04:47.800 that is native and unique to China so important and 0:04:47.839 --> 0:04:48.760 a big deal. 0:04:49.760 --> 0:04:51.960 You know, I'm reminded of how important it was during 0:04:51.960 --> 0:04:55.160 the nineteen seventies when we were first establishing contact with 0:04:55.680 --> 0:04:58.880 China what they call ping pong diplomacy. And you can, 0:04:59.120 --> 0:05:00.960 you know, you can sort of nicker at the idea 0:05:00.960 --> 0:05:05.560 of ping pong players founding forming the basis of a 0:05:05.600 --> 0:05:10.360 relationship between two great, two large, very large economies like this. 0:05:11.000 --> 0:05:14.359 But it is important to have those person to person 0:05:14.400 --> 0:05:16.040 connections and that sort of sentiment. 0:05:16.360 --> 0:05:18.000 Pandas are a part of the of. 0:05:17.960 --> 0:05:22.320 The the quiver of resources that China has, and I 0:05:22.360 --> 0:05:24.880 am glad for one to see them using it. 0:05:25.080 --> 0:05:26.600 But let's look for other ties. 0:05:27.120 --> 0:05:30.640 Ties between students and researchers and scientists and so and 0:05:30.640 --> 0:05:31.120 so forth. 0:05:31.360 --> 0:05:32.600 That's what really can help. 0:05:32.920 --> 0:05:35.839 That's what helped build the original relationship and can rebuild 0:05:35.839 --> 0:05:36.240 it now. 0:05:36.680 --> 0:05:40.159 But where are we with the panda diplomacy Because what 0:05:40.279 --> 0:05:43.840 happened recently was China took back it's pandas, and now 0:05:43.839 --> 0:05:46.600 we had she yesterday talking about potentially sending them back 0:05:46.600 --> 0:05:49.320 to the US. It seems like, I mean, was he 0:05:49.400 --> 0:05:50.800 using this for leverage that recently? 0:05:52.680 --> 0:05:55.760 You know, I think that the pannas are always on 0:05:55.839 --> 0:05:58.480 loan as you know, our pieces and so and so 0:05:58.520 --> 0:06:01.320 forth between different countries, so it is their right and 0:06:01.320 --> 0:06:02.480 progative to take them back. 0:06:02.600 --> 0:06:04.120 I'm not exactly sure what's burred that. 0:06:04.279 --> 0:06:08.000 It might have been a moment of national pride or 0:06:08.040 --> 0:06:11.760 something that led them to do that last year or 0:06:11.839 --> 0:06:13.880 just a few months ago. But the idea that he's 0:06:13.920 --> 0:06:16.919 opening back up to sending other panda, sending more pandas 0:06:16.960 --> 0:06:19.440 back to US Zeos, I think is an important next step. 0:06:19.480 --> 0:06:22.280 Hey David, what does the narrative or headlines get right 0:06:22.320 --> 0:06:23.360 about this relationship? 0:06:23.360 --> 0:06:24.320 What does it get wrong? 0:06:26.120 --> 0:06:30.600 It's super complicated and very synergistic. We both need each other. 0:06:30.960 --> 0:06:34.560 We need them for large workforce, the ability to produce 0:06:34.600 --> 0:06:37.360 things like iPhones and other pieces of technology that are 0:06:37.400 --> 0:06:39.320 in all of our pockets and on all of our desks. 0:06:39.640 --> 0:06:42.760 We absolutely China for that. They need us to be 0:06:42.839 --> 0:06:46.159 part of the group that it consumes their products and 0:06:46.240 --> 0:06:51.360 keeps their workers busy. We need them to buy our 0:06:51.880 --> 0:06:54.760 US treasuries and things like that, and they need us 0:06:55.480 --> 0:06:57.359 to provide a place to put some of the reserves 0:06:57.360 --> 0:06:59.840 in the savings that they have in their country. 0:07:00.120 --> 0:07:01.080 We need each other, you know. 0:07:01.120 --> 0:07:04.159 I believe it was Arshinelli Bask in our conversation with 0:07:04.200 --> 0:07:07.440 Citadel's Ken Griffin this week who where he basically said, 0:07:08.600 --> 0:07:11.240 just imagine if TSMC just cuts off its supply of 0:07:11.280 --> 0:07:15.320 chips to the world, everything shuts down, Every production line 0:07:15.360 --> 0:07:19.240 shuts down. You know, we talk about Apple the close 0:07:19.400 --> 0:07:22.520 connectivity between the two nations, but you think about TSMC, 0:07:23.280 --> 0:07:26.440 It just you know, provides chips for everybody. 0:07:27.080 --> 0:07:30.080 And that is actually absolutely the most critical part of 0:07:30.120 --> 0:07:34.000 the US channel relationship going forward. Taiwan and what happens there. 0:07:34.440 --> 0:07:37.520 You know, we have stuck to a one China policy 0:07:37.560 --> 0:07:41.280 where we recognize just the government in Beijing and don't 0:07:41.320 --> 0:07:44.720 have official recognition of the government Taiwan. We don't recognize 0:07:44.920 --> 0:07:47.960 China's claim to Taiwan, but we just don't talk about that. 0:07:48.600 --> 0:07:52.840 She of course says that he wants to fold Taiwan 0:07:52.960 --> 0:07:55.920 sort back into the Motherland, as he would refer to it, 0:07:56.520 --> 0:08:01.680 and apparently during the communicate the discussions, she said, look, 0:08:01.920 --> 0:08:04.080 piece is all well and good, but at some point 0:08:04.120 --> 0:08:08.240 we need to move towards resolution more generally. So I 0:08:08.280 --> 0:08:10.320 don't think, you know, this is certainly not off the table. 0:08:10.600 --> 0:08:13.560 Maybe it's not pressing this month or the next, sorry, 0:08:13.560 --> 0:08:15.880 this year or the next couple of years, but China 0:08:15.960 --> 0:08:18.840 does have their eyes on Taiwan, and TSMC makes that 0:08:18.960 --> 0:08:22.080 a super complicated situation for the US as well as 0:08:22.120 --> 0:08:22.600 the rest. 0:08:22.440 --> 0:08:22.880 Of the world. 0:08:23.080 --> 0:08:24.680 Speaking of tables, there are a lot of people who 0:08:24.680 --> 0:08:27.080 shared a very important table with President g last night. 0:08:27.200 --> 0:08:30.560 Yeah, well, certainly a who's who of executives there yesterday, 0:08:30.760 --> 0:08:31.640 not just at the dinner. 0:08:31.720 --> 0:08:31.880 Right. 0:08:31.920 --> 0:08:34.320 Elon Musk wasn't there at the dinner. Mark Benioff wasn't there, 0:08:34.360 --> 0:08:36.600 but they did sort of a drive by greeting during 0:08:36.640 --> 0:08:39.280 the cocktail hour. We had Sander Pichaya b Alphabet City's 0:08:39.320 --> 0:08:42.600 Jane Frasier. Larry Fink was at President She's table. Tim 0:08:42.679 --> 0:08:46.200 Cook of Apple, of course, who didn't know, by the way, Carroll, 0:08:46.200 --> 0:08:47.240 if he was actually going to bet. 0:08:47.120 --> 0:08:48.520 He didn't think he was going to come on. 0:08:48.640 --> 0:08:49.560 He was in China. 0:08:49.320 --> 0:08:50.000 Twice this year. 0:08:50.040 --> 0:08:50.480 He was there. 0:08:50.520 --> 0:08:53.960 He's going to be explained to us. You know, the 0:08:54.000 --> 0:08:56.360 takeaways from who was there last night, and who wasn't 0:08:56.360 --> 0:08:58.160 there last night, and who was at at she's table. 0:08:59.120 --> 0:08:59.760 Well he is the. 0:08:59.720 --> 0:09:02.920 Interest saying that how important financial services were in that. 0:09:02.920 --> 0:09:05.480 That actually struck me how many financial services people were 0:09:05.480 --> 0:09:09.000 there because that's an area where US banks were involved early. 0:09:09.200 --> 0:09:12.360 Some of them got burnt. But it's a growing part 0:09:12.360 --> 0:09:14.120 of the of the Chinese economy, and of course a 0:09:14.200 --> 0:09:18.280 huge part of US services exports into China, so that's 0:09:18.280 --> 0:09:22.080 a important balancing part of our of our good goods 0:09:22.080 --> 0:09:24.800 deficit with China is our services. So I keep an 0:09:24.800 --> 0:09:28.400 eye on the financial services industry. That's pretty interesting to me. 0:09:28.640 --> 0:09:32.160 I'm not surprised that Cook was there. He knows what's 0:09:32.160 --> 0:09:34.360 important to him in his future at Apple. 0:09:34.600 --> 0:09:36.360 It's like I think I can move my schedule around. 0:09:36.559 --> 0:09:40.360 Yeah, of course, I'll make it happen. I'll make it happen. David, 0:09:40.400 --> 0:09:43.000 Thank you so appreciate it. David Reedel, President of Retal 0:09:43.080 --> 0:09:45.160 research on zoom in San Francisco. 0:09:45.600 --> 0:09:49.160 You're listening to the Bloomberg Business Week podcast. Catch us 0:09:49.160 --> 0:09:52.560 live weekday afternoons from three to six Eastern Listen on 0:09:52.600 --> 0:09:56.600 Bloomberg dot Com, the iHeartRadio app, and the Bloomberg Business App, 0:09:56.920 --> 0:09:59.000 or watch us live on YouTube. 0:10:00.240 --> 0:10:02.520 Master Low with Tim Stanevik life here on Bloomberg Business 0:10:02.520 --> 0:10:04.880 Week Bloomberg News. You might have caught this story over 0:10:04.880 --> 0:10:08.960 the weekend talking about the cost of the war between 0:10:09.040 --> 0:10:13.120 Israel and Hamas. Obviously the cost to lives, no way 0:10:13.120 --> 0:10:15.280 to measure that, no doubt about it. But it also 0:10:15.360 --> 0:10:18.200 has an economic cost, and Israel's war gets to mass 0:10:18.240 --> 0:10:21.000 costing the economy about two hundred and sixty million dollars 0:10:21.040 --> 0:10:24.240 every day. It's become more expensive for Israel than first 0:10:24.280 --> 0:10:28.480 predicted and is putting a strain on Israel's public finances. 0:10:28.640 --> 0:10:31.360 We have with us near Barkad right now for Israel 0:10:31.400 --> 0:10:33.600 Minister of Economy. He was the mayor of Jerusalem from 0:10:33.640 --> 0:10:36.760 two thousand and eight to twenty nineteen. Before that, served 0:10:36.760 --> 0:10:39.240 as a member of the Jerusalem City Council. He's got 0:10:39.240 --> 0:10:42.040 a background in tech, though, having founded an antivirus software 0:10:42.080 --> 0:10:44.480 company back in the nineteen eighties. He was also the 0:10:44.480 --> 0:10:48.000 first chairperson Carol of Checkpoints Software Technologies. It's the American 0:10:48.080 --> 0:10:51.079 Israeli IT security company that's listed here in the US. 0:10:51.120 --> 0:10:53.000 On the next deck, mister minister, thank you so much 0:10:53.040 --> 0:10:56.400 for coming with us. Tell us how I think we're 0:10:56.400 --> 0:10:58.760 going to get your mic on for you. There you go. 0:11:00.480 --> 0:11:02.800 First of all, welcome, welcome, Thank you for being with us. 0:11:03.800 --> 0:11:06.640 You do have to be thinking about there are some nervousness, 0:11:06.640 --> 0:11:10.480 certainly among investors in terms of the Israeli economy. What 0:11:10.520 --> 0:11:13.480 can you tell us about it today and where you 0:11:13.520 --> 0:11:14.559 see it going from here? 0:11:15.280 --> 0:11:17.240 Well, thank you for hosting me. I think we have 0:11:17.360 --> 0:11:19.000 to have the perspective. 0:11:19.040 --> 0:11:22.600 First. We imagine you have a neighbor. 0:11:23.440 --> 0:11:28.360 That goes and rapes your wife, takes your child and 0:11:28.400 --> 0:11:32.280 puts it in an oven, and then it takes your 0:11:32.360 --> 0:11:37.439 children hostage. This is a neighbor that wants to wipe 0:11:37.440 --> 0:11:41.720 out Israel off the map. We have fourteen hundred people killed, murdered, 0:11:42.480 --> 0:11:47.000 and two hundred and thirty nine abducted and now are hostages. Okay, 0:11:47.400 --> 0:11:50.040 so Israel has made a decision They're going to wipe 0:11:50.120 --> 0:11:52.920 these monsters off the map, off the face of the earth. 0:11:53.720 --> 0:11:54.800 By the way, the. 0:11:54.800 --> 0:11:58.280 Radical Islamic jihadists are not only threatening Israel, They're threatening 0:11:58.320 --> 0:12:01.800 all over the world. We're on the same line, Israel 0:12:02.040 --> 0:12:04.480 and the US, as this is a big Satan where 0:12:04.520 --> 0:12:07.880 the little Satan and Europe is also in the same line. 0:12:08.040 --> 0:12:11.000 So we're not just fighting our own battle. We're fighting 0:12:11.520 --> 0:12:15.760 a battle between good and evil, between the West, civilized 0:12:16.480 --> 0:12:20.240 world and radical Islamis jihadis that want to kill everyone else. 0:12:20.720 --> 0:12:23.680 I'm saying this because this is the perspective. We're going 0:12:23.760 --> 0:12:26.280 to win this war. We're gonna wipe them off the 0:12:26.280 --> 0:12:28.520 face of the earth like the world did with the 0:12:28.600 --> 0:12:32.080 Nazis after, you know, at the tail end of the 0:12:32.080 --> 0:12:35.280 Second World War. And once we do that, and we 0:12:35.320 --> 0:12:37.520 will do that, the world is going to be a 0:12:37.559 --> 0:12:39.920 much much better world for everyone, not just for Israel. 0:12:40.360 --> 0:12:43.920 And so you have to look at the economic perspective 0:12:43.960 --> 0:12:47.200 as a derivative of that goal. So yeah, we're now 0:12:47.320 --> 0:12:52.320 focusing our energy in our economy on the war, where 0:12:52.520 --> 0:12:55.880 it's going to cost us two to three percent of 0:12:55.880 --> 0:13:01.440 the GDP, which is something that Israel could relatively easier manage. 0:13:01.480 --> 0:13:05.520 We had sixty percent debt to GDP entering this war. 0:13:06.320 --> 0:13:10.080 And let me forgive me, because you know, second, that 0:13:10.080 --> 0:13:11.960 should have been like our second or third or fourth question, 0:13:12.040 --> 0:13:15.320 because obviously our hearts and our minds go out to 0:13:15.360 --> 0:13:18.480 what's been happening and the conflict on both sides, and 0:13:18.520 --> 0:13:21.280 it seems like we've had many conversations about trying to 0:13:21.280 --> 0:13:26.000 figure a better way forward for what's going on there. 0:13:26.320 --> 0:13:29.080 And you know, when we start talking about the future, 0:13:29.160 --> 0:13:30.880 people like, well, wait, we've got to figure out what's 0:13:30.920 --> 0:13:34.319 going on right now and deal with it, the situation. 0:13:34.800 --> 0:13:38.480 And so let me go back there and say, when 0:13:38.559 --> 0:13:41.760 you think this conflict, this war will be done. 0:13:41.920 --> 0:13:44.880 Well, we're taking time because we don't want collateral damage. 0:13:44.920 --> 0:13:45.600 We have to deal with. 0:13:45.559 --> 0:13:48.040 We's already been collateral damage well. 0:13:48.440 --> 0:13:50.880 And the reason and no, there's no collateral damage on 0:13:51.240 --> 0:13:54.240 our side. It's an intent to kill Israelis and wipe 0:13:54.320 --> 0:13:57.800 us off the map. We don't want to target innocent civilians. 0:13:58.320 --> 0:14:02.719 We deal with Hamasa hiding behind you know, in our shelters. 0:14:02.840 --> 0:14:06.960 We put our citizens in Gaza. The militants use the 0:14:07.000 --> 0:14:09.959 shelter and they don't care about their civilians. 0:14:10.000 --> 0:14:10.520 They don't care. 0:14:10.600 --> 0:14:15.719 Actually they're using as human shields. We hide our we 0:14:16.120 --> 0:14:21.600 protect our civilians they don't, and so entering Gaza, focusing 0:14:21.640 --> 0:14:24.480 on the militants that are by the way, using the 0:14:24.520 --> 0:14:28.800 hostages as human shields. It's a challenge. So we're taking 0:14:28.800 --> 0:14:30.920 our time. We want to make sure that we only 0:14:31.000 --> 0:14:36.320 hit the militants and enable the people to leave the 0:14:36.360 --> 0:14:39.520 northern part of Gaza, you know, their quarters, helping them 0:14:39.560 --> 0:14:42.000 go to the southern part. Because we don't we care 0:14:42.040 --> 0:14:45.040 about every human life, every human life, and we don't 0:14:45.040 --> 0:14:47.720 feel comfortable if there's collateral damage. 0:14:47.720 --> 0:14:51.680 That's why we're taking our time and the war. We 0:14:51.720 --> 0:14:54.120 will win this war. There's no doubt in my mind. 0:14:53.920 --> 0:14:57.280 What happens, what happens to Gaza when, as you say, 0:14:57.440 --> 0:14:59.560 you win that war, who ends up ruling Gaza. 0:15:00.280 --> 0:15:03.640 Anybody that says that in its charter is not to 0:15:03.640 --> 0:15:09.360 wipe Israel off the map. Hamas will not be there 0:15:09.640 --> 0:15:12.800 after this war. We're waiting to see. You know, Israel 0:15:12.880 --> 0:15:16.360 struck a peace deal with Egypt, which was our biggest 0:15:16.600 --> 0:15:19.840 enemy at the time. They recognize the State of Israel 0:15:20.160 --> 0:15:23.040 our right of existence, and we have forty years peace 0:15:23.080 --> 0:15:26.560 with them. Similarly with Jordan we have twenty five years piece. 0:15:28.120 --> 0:15:29.920 I remember I was seven years old when they attacked 0:15:29.960 --> 0:15:34.440 us in sixty seven, okay, but we came to terms 0:15:34.440 --> 0:15:36.920 with them. We have the Abraham Accords, and hopefully expand 0:15:36.960 --> 0:15:40.800 that once somebody will come in Gaza and recognize the 0:15:40.880 --> 0:15:43.400 right of the state of Visul to live and seek peace, 0:15:44.000 --> 0:15:46.040 we will collaborate with them like we did in the past. 0:15:46.160 --> 0:15:49.720 If they continue to say and their charter is destruction 0:15:49.800 --> 0:15:52.720 of Israel, will fight them until we beat them, and 0:15:52.760 --> 0:15:56.000 we'll wait for somebody to come and replace those radical 0:15:56.080 --> 0:15:57.520 jihadis that will seek peace. 0:15:57.600 --> 0:15:59.040 What is the economic way forward? 0:15:59.080 --> 0:16:02.520 And no one would dispute hamas terrorists, right that must 0:16:02.520 --> 0:16:07.000 be put to an end, not Palestinians that are there 0:16:07.040 --> 0:16:10.640 in Gaza. So what is the economic way forward for 0:16:11.000 --> 0:16:17.560 Israel and Palestinians to exist economically we're both thrive because 0:16:17.560 --> 0:16:20.920 many would argue that that's not the situation for many 0:16:21.640 --> 0:16:22.880 in Gaza right now. 0:16:23.320 --> 0:16:26.280 So see, there are good examples of how we collaborate. 0:16:28.400 --> 0:16:31.840 Until October seventh, we had one hundred and twenty thousand 0:16:31.840 --> 0:16:33.960 Palestinians that used to cross the fence every day and 0:16:34.000 --> 0:16:36.040 work in Israel, Okay. 0:16:36.440 --> 0:16:39.800 And we've had tech entrepreneurs who have talked about working 0:16:40.600 --> 0:16:43.680 you know, Israeli tech entrepreneurs who have worked with individuals 0:16:44.120 --> 0:16:44.720 in God right. 0:16:44.840 --> 0:16:47.800 We believe in civil separation, they should manage their lives, 0:16:47.840 --> 0:16:50.760 and we believe in collaboration on the economic side. At 0:16:50.840 --> 0:16:53.560 least we did until October seventh. Now it's much more 0:16:53.640 --> 0:16:56.280 challenging because there's a deep concern between ISRAELA. 0:16:56.320 --> 0:16:58.520 We don't trust our neighbors. We don't trust our. 0:16:58.440 --> 0:17:01.560 Neighbors, and it's a could you imagine going through what 0:17:01.600 --> 0:17:04.160 we did in October seven and trying to go back 0:17:04.240 --> 0:17:06.800 to before October seven, It's not going to happen. And 0:17:06.840 --> 0:17:13.760 so what we were more optimistic on economic collaboration, they 0:17:14.080 --> 0:17:16.000 it's very difficult to work well. 0:17:15.920 --> 0:17:19.760 In an economic situation where both sides benefited as well, 0:17:20.040 --> 0:17:23.760 of course, and there was thriving because many would argue, 0:17:23.760 --> 0:17:26.040 we see it certainly in the US and not apples 0:17:26.040 --> 0:17:28.360 to apples, But you know when people feel like they're 0:17:28.400 --> 0:17:33.879 economically left behind, that's when chaos candidates come out. So 0:17:34.320 --> 0:17:36.560 that's what I'm trying to understand. Many would argue there 0:17:36.560 --> 0:17:39.920 needs to be two states where two separate states can 0:17:40.040 --> 0:17:42.160 thrive economically on their own. 0:17:42.840 --> 0:17:43.879 Let me give you a statistic. 0:17:44.320 --> 0:17:49.480 Jeans really average salary is fifty four thousand dollars on average. 0:17:49.800 --> 0:17:53.680 The Arabs relies is probably close thirty five to forty 0:17:53.720 --> 0:17:58.240 thousand dollars average salary the Palestinians they used to cross 0:17:58.280 --> 0:18:01.960 the fence every day was sixteen thousan dollars. The pedacedes 0:18:02.000 --> 0:18:04.960 of the work and collaborate in Judean and Samaria with 0:18:05.080 --> 0:18:07.280 the Jewish cities and. 0:18:07.320 --> 0:18:09.840 Towns was about eleven to twelve thousand. 0:18:10.760 --> 0:18:15.360 In the Judean Samari the Arab side was about seven thousand, 0:18:15.440 --> 0:18:18.520 and Gaza before the war was three thousand dollars a. 0:18:18.440 --> 0:18:19.040 Person a year. 0:18:20.160 --> 0:18:23.639 So that demonstrates that the more they collaborate with the 0:18:23.720 --> 0:18:25.800 Jewish state, the better off they are. And we want 0:18:25.840 --> 0:18:29.320 to collaborate. We wanted to collaborate, but they have to decide. 0:18:29.400 --> 0:18:33.199 If they want to wipe us off the map, we 0:18:33.280 --> 0:18:37.560 will fight them until we take them off the face 0:18:37.600 --> 0:18:37.920 of the earth. 0:18:37.960 --> 0:18:39.120 It's their decision to make. 0:18:39.880 --> 0:18:43.200 Our hands are always open to collaborate and create peace, 0:18:43.240 --> 0:18:46.040 and we have peace with the Arab countries. It's their 0:18:46.080 --> 0:18:48.560 decision to make. If they want to fight, they'll lose. 0:18:48.680 --> 0:18:50.240 If they want to collaborate, we will. 0:18:50.760 --> 0:18:52.560 Mister minister, I want to ask about these art. 0:18:52.520 --> 0:18:55.720 You're not talking homoster dragon, Palestinians right to collaborate talking. 0:18:56.119 --> 0:18:58.040 Anybody that wants to wipe us off the map of 0:18:58.080 --> 0:19:01.680 the Earth will haunt them down until they raise the 0:19:01.680 --> 0:19:02.320 white flag. 0:19:02.960 --> 0:19:05.439 In the economy, I wanted to ask about the coalition funds, 0:19:05.440 --> 0:19:10.439 this discretionary spending that's earmarked to the five parties of 0:19:10.760 --> 0:19:15.360 Netanyahu's government. Do you think those should be scaled back 0:19:15.440 --> 0:19:17.919 to make more room for war financing? 0:19:19.040 --> 0:19:21.440 Right now, we have a unity government, and I think 0:19:21.480 --> 0:19:25.000 one of the biggest challenges we have is expanding unity 0:19:25.040 --> 0:19:28.680 government throughout the war and after the war. One of 0:19:28.680 --> 0:19:32.720 the biggest challenges we have is unification. And when you 0:19:32.720 --> 0:19:36.679 have unification, people make concessions to each other to a 0:19:36.760 --> 0:19:39.679 degree that we all agree on how to create the budget. 0:19:39.760 --> 0:19:42.119 So I think that you were going to see in 0:19:42.160 --> 0:19:46.840 twenty twenty four we're restructuring the budget to focus on 0:19:46.880 --> 0:19:49.160 the war and to focus on economic growth. Immediately after, 0:19:49.920 --> 0:19:52.359 we will make the concessions needed so that everyone's happy. 0:19:52.560 --> 0:19:55.719 These are pretty controversial payments, three point six billion dollars 0:19:55.720 --> 0:19:58.639 worth of transfers. They were approved last May. They're partly 0:19:58.680 --> 0:20:01.320 going toward religious schools, some of those schools are exempt 0:20:01.320 --> 0:20:04.840 from teaching subjects like English and math. Where do you 0:20:04.880 --> 0:20:05.600 fall in this debate? 0:20:06.960 --> 0:20:09.520 As I said earlier, there's no doubt in my mind 0:20:09.560 --> 0:20:10.959 that we will expand the coalition. 0:20:11.080 --> 0:20:12.320 We need to expand the collision. 0:20:12.359 --> 0:20:15.199 And when you do that, there's more collaboration, more consideration, 0:20:15.720 --> 0:20:17.359 and you do things with wide acceptance. 0:20:17.480 --> 0:20:18.520 That is what's going to happen. 0:20:19.560 --> 0:20:23.400 In other words, we'll agree together on how to focus 0:20:23.400 --> 0:20:26.560 the funds on the necessary challenges Israel has. 0:20:28.040 --> 0:20:31.600