WEBVTT - US Restricts Access to Nvidia Chips, BofA's Positive Earnings

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<v Speaker 1>Good morning.

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<v Speaker 2>I'm Brian Curtis and I'm Doug Krissner. Here are the

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<v Speaker 2>stories we're following today.

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<v Speaker 1>Let's get right over to Ed Bastro, who is looking

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<v Speaker 1>at the President's upcoming trip to Israel and all the

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<v Speaker 1>rest of the news from San Francisco.

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<v Speaker 3>Ed.

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<v Speaker 4>Yeah, thank you, Brian. Israel's military says it did not

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<v Speaker 4>strike a hospital in Gaza. It says Islamic jihad militants

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<v Speaker 4>sit with rockets. Prime Minister Benjamin net Yahu says it

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<v Speaker 4>was terrorist. He says definitely not. The Ida for Ports

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<v Speaker 4>earlier have said at least five hundred people died in

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<v Speaker 4>the attack. Meanwhile, while on the humanitarian front, trucks carrying

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<v Speaker 4>aid from Egypt were unable to cross into Gaza today.

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<v Speaker 4>More from Bloomberg's Oliver Crook in Tel Aviv, and.

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<v Speaker 3>Literally hundreds of tons of aid that are just sitting

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<v Speaker 3>there waiting to get through. We've heard from the Egyptians,

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<v Speaker 3>We've heard from the Israelis. The Israelis have said that

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<v Speaker 3>they want to create the conditions under which this aid

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<v Speaker 3>can finally move through, but they said it's going to

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<v Speaker 3>take time. Their main concern is that this aid gets

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<v Speaker 3>taken in commandeer by Hamas.

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<v Speaker 4>And this, of course with a backdrop of the pending

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<v Speaker 4>Israeli ground invasion. Bloomberg's Neck Watams reports Israeli forces continue

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<v Speaker 4>to pound targets there an exception of the invasion. Bloomberg

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<v Speaker 4>National Security correspondent Nick Watams reports, no word from Israel.

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<v Speaker 5>Something that they're not putting a timetable on. They're not

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<v Speaker 5>going to give a sense for when it might happen,

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<v Speaker 5>but that it could happen at any time. I mean,

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<v Speaker 5>one thing that is important to say that we think

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<v Speaker 5>is at least a reasonable expectation is that it would

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<v Speaker 5>not start with President Biden in the region.

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<v Speaker 4>And next US is putting two thousand troops on high

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<v Speaker 4>alert and extending the deployment of a carrier group in

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<v Speaker 4>the Eastern Mediterranean, and President Biden is due to board

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<v Speaker 4>Air Force One this evening for an arrival in Israel

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<v Speaker 4>tomorrow morning local time. Bloomberg's Kaylee Lyons says, certainly a

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<v Speaker 4>show of unity.

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<v Speaker 6>But there is also the concern of the fate of

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<v Speaker 6>the hostages, number of which held by Hamas are expected

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<v Speaker 6>to be Americans, and the President would like to see

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<v Speaker 6>every effort need to retrieve them and rescue them alive.

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<v Speaker 4>And the president's schedule to meet with leaders of Egypt

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<v Speaker 4>and Jordan. But now Jordan is announcing the summit with

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<v Speaker 4>Arab leaders has been canceled. And then the White House

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<v Speaker 4>came out saying that President Biden says he canceled that

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<v Speaker 4>leg of the trip, and I sees John Kirby says,

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<v Speaker 4>regarding the AID.

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<v Speaker 7>It's really on the humanitarian front, and he'll be hitting

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<v Speaker 7>that not only hard while he's in Israel, but when

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<v Speaker 7>he goes down on Jordan and speaks to President Ceci

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<v Speaker 7>of Egypt, President of Bassa, the Palestinian authority, and of

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<v Speaker 7>course King of Dollah, all focused on making sure that

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<v Speaker 7>humanitarian assistants can flow in.

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<v Speaker 4>So again the Biden trip to Israel still on to

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<v Speaker 4>the Arab leader meeting apparently has been canceled. Jim Jordan

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<v Speaker 4>not the House speaker. He got blatantly rebuffed today in

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<v Speaker 4>the first round of voting. There'll be no votes tonight.

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<v Speaker 4>Bloomberg's Jonathan Tamari says it did not go well at all.

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<v Speaker 8>Leading up to today. The word from Jordan's supporters as well,

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<v Speaker 8>it would be like eight to ten people who oppose

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<v Speaker 8>him well, we're looking in double back, and he's in

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<v Speaker 8>a worse position than Kevin McCarthy was in January, when

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<v Speaker 8>Kevin McCarthy took fifteen rounds to become the speaker, and

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<v Speaker 8>he was really the consensus candidate.

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<v Speaker 4>And Bloomberg's Wendy Benjamin says, the question now is how

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<v Speaker 4>long can this go on?

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<v Speaker 9>Will the House be willing to keep doing this? I mean,

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<v Speaker 9>there is the White House has sent a one hundred

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<v Speaker 9>billion dollar aid request for Israel over to the House.

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<v Speaker 9>The Senate says, sure, we're going to take it up

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<v Speaker 9>because we're a functioning chamber of Congress and the House

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<v Speaker 9>can't do anything. The Democrats may offer Patrick McHenry, the

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<v Speaker 9>acting Speaker, more powers, but there's no sense on the

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<v Speaker 9>Republican side that they're willing to do that.

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<v Speaker 4>Now. Part of the problem for members of the House

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<v Speaker 4>is Jordan's loyalty to Donald Trump and in the past

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<v Speaker 4>not acknowledging that Trump lost the election. Well, ABC's Rachel

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<v Speaker 4>Scott caught up with Jordan earlier today.

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<v Speaker 10>Book said it's important for the Republican Speaker of the

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<v Speaker 10>House to acknowledge that Donald Trump lost the election.

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<v Speaker 4>Do you knowledge that the sounds of silence, Global news

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<v Speaker 4>power by more than twenty seven hundred JO list and

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<v Speaker 4>analysts in over one hundred twenty countries in San Francisco.

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<v Speaker 4>I'm Ed Baxter. This is Bloomberg, all right, Brian.

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<v Speaker 1>Yes, c in Hong Kong. I'm Brian Curtis, along with

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<v Speaker 1>Doug Krisner. Our colleague Vunny Quinn will join a little

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<v Speaker 1>bit later this hour, and we have more coverage here.

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<v Speaker 1>The White House is eyeing a sizeable package to help

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<v Speaker 1>support Israel and others in the wake of the Hamas attacks.

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<v Speaker 1>Bloomberg's Erica Hrskowitz has more.

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<v Speaker 11>President Biden is reportedly considering a supplemental request of approximately

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<v Speaker 11>one hundred billion dollars that would include defense assistants for

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<v Speaker 11>Israel and Ukraine, alongside border security funding and aid to

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<v Speaker 11>nations in the Indo Pacific, including Taiwan. The comprehensive package

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<v Speaker 11>seeks to leverage broad bipartisan support for Israel in the

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<v Speaker 11>wake of the Hamas attacks to help ease passage of

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<v Speaker 11>aid for Ukraine, which has struggled to earn the favor

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<v Speaker 11>of House Republicans. The inclusion of border security funding may

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<v Speaker 11>also help garner support from Republicans who have long linked

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<v Speaker 11>additional foreign assistants to addressing an influx of migrants in

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<v Speaker 11>the US. Erka Herskowitz Bloomberg Radio.

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<v Speaker 2>Well, the US is restricting the sales of computer chips

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<v Speaker 2>made by Invidia specifically designed for the Chinese market. This

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<v Speaker 2>is part of a sweet being new update to export

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<v Speaker 2>curbs designed to block China's access to highly advanced semiconductor technology.

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<v Speaker 2>Here's bloomberg zed Ludlow.

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<v Speaker 12>In the Nvidia context, remember how important China is. In

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<v Speaker 12>the last earning score, in Vidia stated that in the

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<v Speaker 12>data center context, China was twenty to twenty five percent

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<v Speaker 12>of sales, within the historical range. In Nvidia has issued

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<v Speaker 12>US a statement saying that it complies with any regulation

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<v Speaker 12>or export requirements. But here's the key point. We don't

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<v Speaker 12>expect a near term meaningful impact on our financial results.

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<v Speaker 2>That is bloomberg ed Ludlow. By the way, these tighter

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<v Speaker 2>controls are targeting in Vidia's A eight hundred and h

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<v Speaker 2>eight hundred semiconductors. In Nvidia created these chips for export

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<v Speaker 2>to China after the Biden administration introduced its initial restrictions.

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<v Speaker 2>That was last October, right, and.

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<v Speaker 1>In Nvidia took quite a hit in the market today,

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<v Speaker 1>down four point seven percent. Some of the other ship

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<v Speaker 1>makers hit pretty hard as well well. Traders at Bank

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<v Speaker 1>of America had their best third quarter in at least

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<v Speaker 1>a decade, and net interest income came in better than expected.

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<v Speaker 1>We heard from Bank of America's CEO, Brian moynihan. He

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<v Speaker 1>says growth in the bank's consumer checking business has been integral.

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<v Speaker 13>We do really well with young Americans, and so we

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<v Speaker 13>keep adding that account growth of nine hundred thousand for

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<v Speaker 13>the last four quarters a million and the four quarters

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<v Speaker 13>before that, those numbers are net growing to thirty seven

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<v Speaker 13>million Americans. Customer satisfaction, high employee satisfaction that area, and

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<v Speaker 13>it all works, and it produces a nine hundred and

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<v Speaker 13>eighty billion dollars in deposits and.

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<v Speaker 1>Consumer Brian moynihan. There, Bank of America's shriffes were up

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<v Speaker 1>two point three percent.

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<v Speaker 2>In New York, we go to Goldman Sachs next. The

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<v Speaker 2>firm reported trading revenue for the third quarter above expectations.

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<v Speaker 2>Even so, Goldman saw a second straight quarter of losses

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<v Speaker 2>in its real estate assets, and in the end, these

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<v Speaker 2>facts dragged Goldman's profit lower. Here's Bloomberg's Alison Williams.

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<v Speaker 10>I think the pressure from investors is really more on

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<v Speaker 10>the cost side and how they can meet their overall

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<v Speaker 10>cost goals. I think the consumer business, as you said,

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<v Speaker 10>it's a lot of headlines because it's very unlike Goldman,

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<v Speaker 10>you know, and it was it was sort of a

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<v Speaker 10>little bit of a head scratcher when they went into

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<v Speaker 10>the business. It was it was almost like a negative

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<v Speaker 10>foreshadowing for the rest of their business that they would

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<v Speaker 10>do that. But I would say that investors never owned

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<v Speaker 10>Goldman Sachs to own that, and I think investors are

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<v Speaker 10>probably happy that they're focusing on their you know, they're

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<v Speaker 10>focusing on their core and their core. I mean, the

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<v Speaker 10>trading results very good, but investors likely anticipated that, that.

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<v Speaker 2>Is Bloomberg's Allison Williams. By the way, Goldman's share it's

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<v Speaker 2>finished down one point six percent in regular trading. We'll

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<v Speaker 2>hear from Morgan Stanley tomorrow before the opening belt Brian.

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<v Speaker 1>And crossing to this part of the world, Doug China's

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<v Speaker 1>latest economic data do out today are expected to show

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<v Speaker 1>an economy that he is sputtering. Bloomberg's Joan Wong has

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<v Speaker 1>the story from Hong Kong.

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<v Speaker 14>The data will likely show GDP expanded four and a

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<v Speaker 14>half percent year on year in the third quarter. That's

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<v Speaker 14>below the government's annual target and will likely stoke calls

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<v Speaker 14>for more stimulus. It's not that past stimulus hasn't worked,

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<v Speaker 14>as some measures are expected to show progress. September's industrial

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<v Speaker 14>output may rise four point four percent, almost in line

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<v Speaker 14>with August. Retail sales likely accelerated to four point nine percent,

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<v Speaker 14>but will it continue. Some economists have been raising their

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<v Speaker 14>forecasts in recent weeks. They anticipate China will come close

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<v Speaker 14>to hitting its overall growth target for twenty twenty three

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<v Speaker 14>of around five percent. In Hong Kong joined Wang Bloomberg Radio.

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<v Speaker 1>I'm Brian Curtis So along with Vonnie Quinn. Our guest

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<v Speaker 1>is Henrietta Trey. He's managing partner and director of Economic

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<v Speaker 1>Policy at Veta Partners. Henrietta I wanted to start off

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<v Speaker 1>with kind of a broader question here and looking at

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<v Speaker 1>the House Speakership.

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<v Speaker 4>Disaster, I suppose you could call it today.

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<v Speaker 1>If effective can US diplomacy be when you have the

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<v Speaker 1>body politic in the United States so fractured that any

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<v Speaker 1>promises from any US politicians, even the President may seem unenforceable.

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<v Speaker 15>That's a great question. It's funny Ken Buck, one of

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<v Speaker 15>the Republicans who voted against the speaker McCarthy originally and

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<v Speaker 15>voted for his ouster and then voted against Jim Jordan.

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<v Speaker 15>Here he had an incredible quote right off the floor

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<v Speaker 15>after the Jordan vote. He said, no one's watching us,

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<v Speaker 15>this doesn't matter, no one cares. Is effectively what he

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<v Speaker 15>was implying, And that sounds like a great answer to

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<v Speaker 15>your question that the members themselves don't think they're important.

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<v Speaker 15>But what he went on to say is there's no urgency.

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<v Speaker 15>We don't have a supplemental yet from the White House

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<v Speaker 15>on Israel aid. The government doesn't shut down until November seventeenth.

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<v Speaker 15>The Republican Party does not have an agenda or an

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<v Speaker 15>urgent ask that they need to to accomplish, And so

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<v Speaker 15>effectively he's saying, we have time. I agree that the

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<v Speaker 15>ability to have diplomacy while the one wing of the

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<v Speaker 15>Congress is pure chaos is hard to fathom. But you

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<v Speaker 15>know the real answer functionally is they just don't need

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<v Speaker 15>to find a speaker yet. And I think it could

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<v Speaker 15>be another one to two weeks before they do, and

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<v Speaker 15>ultimately I think they will probably fail. And so the

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<v Speaker 15>off ramp is to just give more authority to the

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<v Speaker 15>Speaker pro Tempore Patrick McHenry, a Republican from North Carolina,

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<v Speaker 15>on only the absolutely urgent must pass legislation like aid

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<v Speaker 15>to Israel.

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<v Speaker 16>And so how long would that last then, Henrietta, and

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<v Speaker 16>what would the legislation look like.

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<v Speaker 15>That's a great question as well. So there are thoughts

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<v Speaker 15>about making any expanded powers of the Speaker pro tempore temporary.

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<v Speaker 15>November seventeenth is the deadline. It's most frequently discussed because

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<v Speaker 15>that's when the government shutdown happens, and so by extension,

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<v Speaker 15>they're effectively saying all will vote on is bills to

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<v Speaker 15>keep the government open and an emergency aid package to Israel, Ukraine,

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<v Speaker 15>the US Mexico border, and Asian nations including Taiwan, and

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<v Speaker 15>what we have in the crisis with Israel is a

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<v Speaker 15>very helpful dynamic on Capitol Hill and that it can

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<v Speaker 15>keep the government open because I suspect they will all

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<v Speaker 15>get lumped into one big bill and that Speaker ProTem

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<v Speaker 15>for I will be in a position of expanded power

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<v Speaker 15>for as long as that takes. To cross to pass.

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<v Speaker 1>So as we see Republicans sputtering to a degree here,

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<v Speaker 1>what's the smart play by Democrats?

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<v Speaker 15>You know, this is kind of the example of you

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<v Speaker 15>give somebody the longest rope they want to hang themselves with.

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<v Speaker 15>The Democrats are, you know, marching in lobstep behind Jeffreys.

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<v Speaker 15>There's been no wavering. He gets two hundred and twelve

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<v Speaker 15>votes every single time. And I think it's very interesting

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<v Speaker 15>and telling that the narrative Republicans are trying to spend,

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<v Speaker 15>most specifically Kevin McCarthy today, is that somehow this is

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<v Speaker 15>Democrats faults. And from the polling we can see and

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<v Speaker 15>the way that the American public is responding, that's not

0:12:15.320 --> 0:12:17.880
<v Speaker 15>something that's resonating with the American voter. So I think

0:12:17.920 --> 0:12:21.760
<v Speaker 15>Democrats are just letting this play out. They are hoping

0:12:22.080 --> 0:12:25.480
<v Speaker 15>for an alternate solution, that is the Speaker pro tempore

0:12:25.920 --> 0:12:28.400
<v Speaker 15>being expanded, but they're just sort of holding the line

0:12:28.440 --> 0:12:29.760
<v Speaker 15>and watching the planes.

0:12:30.480 --> 0:12:32.600
<v Speaker 16>Henriette, if I could shift gear just a little bit,

0:12:32.640 --> 0:12:35.319
<v Speaker 16>we saw the cavalcade, the President's cavalcade leave a short

0:12:35.320 --> 0:12:38.320
<v Speaker 16>time ago. What will President Biden want to achieve in

0:12:38.360 --> 0:12:40.920
<v Speaker 16>the Middle East, particularly now that the Quartet salm It

0:12:40.960 --> 0:12:42.280
<v Speaker 16>and that man has been canceled.

0:12:42.679 --> 0:12:42.920
<v Speaker 1>Yeah.

0:12:42.920 --> 0:12:46.560
<v Speaker 15>Absolutely, I mean, obviously, I think the escalation things are

0:12:47.520 --> 0:12:51.400
<v Speaker 15>rapidly moving in Israel. I think he wants to signal

0:12:51.679 --> 0:12:56.360
<v Speaker 15>plane and unwavering support. I think that is part of

0:12:56.400 --> 0:12:58.800
<v Speaker 15>who Biden is sort of to his core, let alone

0:12:58.920 --> 0:13:03.080
<v Speaker 15>is just a represent of America. So to go over

0:13:03.080 --> 0:13:07.000
<v Speaker 15>there during wartime is I think a pretty powerful message

0:13:07.000 --> 0:13:10.000
<v Speaker 15>to say we're on your side, but also do not escalate.

0:13:10.160 --> 0:13:12.679
<v Speaker 15>And I think him physically being there is a powerful

0:13:12.679 --> 0:13:16.040
<v Speaker 15>way for him to get that message across. Obviously, the

0:13:16.080 --> 0:13:21.000
<v Speaker 15>cancelation of various meetings is something that will make the

0:13:21.040 --> 0:13:24.120
<v Speaker 15>optics of this even worse. And I think as time

0:13:24.200 --> 0:13:30.679
<v Speaker 15>goes on, opposition to Israel and to Hamas and potentially

0:13:30.920 --> 0:13:34.520
<v Speaker 15>Iran and Lebanon is only going to grow as sort

0:13:34.520 --> 0:13:37.160
<v Speaker 15>of the dust settles that people feel more comfortable getting

0:13:37.320 --> 0:13:40.040
<v Speaker 15>angry about what they're seeing. And that's the phase that

0:13:40.040 --> 0:13:41.240
<v Speaker 15>we're going to enter into next.

0:13:41.960 --> 0:13:45.000
<v Speaker 1>So one key question is can President Biden be kept

0:13:45.040 --> 0:13:49.440
<v Speaker 1>safe there? And of course the intelligence community would say yes,

0:13:49.480 --> 0:13:52.240
<v Speaker 1>he can be, and this is what we do. But

0:13:52.280 --> 0:13:54.679
<v Speaker 1>then if you look at the failures so far from

0:13:54.760 --> 0:13:58.160
<v Speaker 1>the original attacks, that hamas made to even an incident

0:13:58.240 --> 0:14:00.640
<v Speaker 1>like we saw at the hospital, where we still don't

0:14:00.640 --> 0:14:04.439
<v Speaker 1>know whether this was an incoming missile or the failure

0:14:04.520 --> 0:14:06.959
<v Speaker 1>of a missile trying to be launched from there by

0:14:06.960 --> 0:14:10.920
<v Speaker 1>the Palestinian side, how confident can we be that President

0:14:10.920 --> 0:14:12.040
<v Speaker 1>Biden will be safe.

0:14:12.800 --> 0:14:16.360
<v Speaker 15>That's so fascinating to watch the optics of this play out.

0:14:16.440 --> 0:14:19.720
<v Speaker 15>You know, ordinarily you would have a president just show

0:14:19.800 --> 0:14:21.280
<v Speaker 15>up in the dark of night, you know, the way

0:14:21.280 --> 0:14:24.960
<v Speaker 15>we saw. You know, my thinking is Bush in Iraq

0:14:25.640 --> 0:14:28.880
<v Speaker 15>in the past, you'd have a president just magically appear

0:14:29.120 --> 0:14:33.359
<v Speaker 15>in the middle of the now announcement beforehand, right right, Absolutely,

0:14:33.520 --> 0:14:36.640
<v Speaker 15>I think it's, you know, an obviously dangerous situation. And

0:14:36.720 --> 0:14:40.560
<v Speaker 15>again especially with the layer of the two aircraft carriers

0:14:40.560 --> 0:14:44.440
<v Speaker 15>being over there, more support going and they're trying to

0:14:44.560 --> 0:14:49.520
<v Speaker 15>neutralize any impending escalation. The fact that the ground defensive

0:14:49.600 --> 0:14:53.320
<v Speaker 15>has not formally been launched, I mean, obviously it's not great,

0:14:54.080 --> 0:14:56.320
<v Speaker 15>to say the very least, But the fact that there

0:14:56.440 --> 0:14:59.320
<v Speaker 15>is some hold up from the original twenty four hour

0:14:59.440 --> 0:15:02.239
<v Speaker 15>expectation in a few days back, I think is indicative

0:15:02.400 --> 0:15:05.960
<v Speaker 15>of Secretary of State Lincoln's efforts to sort of contain

0:15:06.040 --> 0:15:08.760
<v Speaker 15>the situation and Biden physically going over there makes it

0:15:08.800 --> 0:15:11.960
<v Speaker 15>a high alert situation. You knows everybody will potentially and

0:15:12.000 --> 0:15:13.560
<v Speaker 15>hopefully be on their best behavior.

0:15:14.160 --> 0:15:16.560
<v Speaker 16>It would seem, in fact, Brian, that you know, some

0:15:16.600 --> 0:15:20.920
<v Speaker 16>of the optics would be you know, for everybody knowing

0:15:20.920 --> 0:15:23.200
<v Speaker 16>that the president is going that's that was undone on

0:15:23.240 --> 0:15:24.080
<v Speaker 16>purpose this time around.

0:15:24.880 --> 0:15:27.440
<v Speaker 1>Well, we hope he will be safe. And we have

0:15:27.520 --> 0:15:30.080
<v Speaker 1>to say to Henrietta Trees, thanks so much for joining us.

0:15:30.120 --> 0:15:32.040
<v Speaker 1>We always love having you on the on the show.

0:15:32.080 --> 0:15:35.160
<v Speaker 1>Thank you. Henrietta Trey is Managing Partner director of Economic

0:15:35.200 --> 0:15:40.120
<v Speaker 1>Policy at Veda Partners. This is Bloomberg Daybreak Asia, your

0:15:40.120 --> 0:15:42.920
<v Speaker 1>morning brief on the stories making news from Hong Kong

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