Speaker 1: Good morning.
Speaker 2: I'm Brian Curtis and I'm Doug Prisner. Here are the
Speaker 2: stories we're following today.
Speaker 3: We'll be getting more on the US House speakership maneuverings
Speaker 3: and also the Israel Hamas war all throughout the program.
Speaker 1: Now it's time for Global News.
Speaker 3: US House of Representatives will not be voting on a
Speaker 3: speaker today, as some had hoped would be the case.
Speaker 3: At Baxter is covering this story as well as the
Speaker 3: latest on Israel and the Gaza strip head.
Speaker 4: Yes, some would hope, but not really expected. Brian. The
Speaker 4: House's closed session, although the negotiations go on behind closed doors.
Speaker 4: Steve Scalise has been nominated by the caucus as a whole,
Speaker 4: and Jim Jordan says he supports that, but Bloomberg's Laura
Speaker 4: Davison says, there is a long way to go.
Speaker 5: This is really a replay of what we saw happen
Speaker 5: in January. The Republicans coming out of various meetings today
Speaker 5: so that there are about twenty people who are not
Speaker 5: behind Scalise. If you'll remember, that was basically where vote
Speaker 5: number one started with McCarthy. You hit about twenty people
Speaker 5: voting against him on the Republican side. This is where
Speaker 5: all the negotiations happen, and a lot of Republicans going
Speaker 5: into the said, look, we want to learn from our
Speaker 5: mistakes from last time. We don't want to have these
Speaker 5: fights in public. We want to change the rules to
Speaker 5: prevent any one person being able to oust a speaker
Speaker 5: at any time. None of that has happened.
Speaker 4: Yeah, but that's not happened. Right, there's a group of
Speaker 4: twenty holding things up now. Meanwhile, Scalise says there's a
Speaker 4: lot of work to be done.
Speaker 6: The conversations we've been having with my colleagues over the
Speaker 6: last few days leading up to this show that there's
Speaker 6: a result that we need to get back to work.
Speaker 6: There's a lot of business to take.
Speaker 4: Care of and focus on the Middle East.
Speaker 6: Our first resolution that we pass under Speaker Steve Scalise
Speaker 6: will be to make it clear that we stand with Israel.
Speaker 6: The McCall meeks resolution will be our first order of business.
Speaker 4: Yeah, but again, nobody knows how long that's going to take.
Speaker 4: Israel meanwhile, forming an emergency coalition government today bloomber' skalaid
Speaker 4: Allstein in Tel Aviv.
Speaker 7: This is in fact a new party. Benny Ganz's party
Speaker 7: just joined the forces with Nan Nathaniel's government's former government
Speaker 7: to days in effect. But what we're seeing now is
Speaker 7: Gans's party join in basically to form a very narrow
Speaker 7: war managing cabinet. They will be leading any operations the war.
Speaker 7: You can say that we'll be moving on from moving
Speaker 7: forward from now on.
Speaker 4: Yeah. Galate saying life is not normal at all in Israel,
Speaker 4: that many people have just hunkered down, not going to work,
Speaker 4: kids not going to school. Also where today that Israeli
Speaker 4: bombing on the Gaza has knocked out most power to
Speaker 4: the strip. US President Joe Biden stopped to talk with
Speaker 4: a group of Jewish leaders in Washington, d C.
Speaker 8: Today, I would argue, said deadliest day for Jews since
Speaker 8: the Holocaust.
Speaker 4: And he says silence his complicity, he will not. He says,
Speaker 4: be silence.
Speaker 8: This attack was a campaign of pure cruelty. I just
Speaker 8: hate cruelty against the Jewish people.
Speaker 4: And says without Israel, Jewish people everywhere are in danger,
Speaker 4: says the US and Israel doing everything possible to get
Speaker 4: the US hostages home. The President says a second carrier
Speaker 4: group is headed to the eastern Mediterranean and has a
Speaker 4: warning for Iran when we moved.
Speaker 8: The US carrier fleet to the Eastern Mediterranean and are
Speaker 8: sending more fighter chitch there in that region, and made
Speaker 8: it clear, made it clear to the Iranians be careful.
Speaker 4: At one point, Biden pounded the podium, saying the globe
Speaker 4: cannot allow this kind of action to go on Global
Speaker 4: News powered by more than twenty seven hundred journalists and
Speaker 4: analysts in over one hundred twenty countries in San Francisco,
Speaker 4: I'm at Baxter in This is Bloomberg.
Speaker 3: Now onto some of our other top stories of the day.
Speaker 3: Minutes from the FED September meetings show that policymakers agreed
Speaker 3: last month that monetary policy should remain restrictive for some time.
Speaker 3: They also noted that the risks of overtightening had to
Speaker 3: be balanced against the idea of keeping inflation on a
Speaker 3: downward path toward two percent. Markets are now eyeing tomorrow's
Speaker 3: inflation report for clues on the Fed's.
Speaker 1: Rate hiking path. Bloomberg's Michael McKee with a preview.
Speaker 9: Wednesday's unexpected rise in the September producer price index hasn't
Speaker 9: changed forecasts for consumer prices. Analysts still see the index
Speaker 9: up at only half the pace of August, as gasoline
Speaker 9: prices remained relatively steady during the month even as oil
Speaker 9: prices rose, and while goods prices rose faster than services.
Speaker 9: In the PPI, investors and FED officials will focus on
Speaker 9: CPI services services minus housing costs have contributed much of
Speaker 9: the inflation pressure over the past year, and the expectation
Speaker 9: is that should continue to ease over the past two weeks.
Speaker 9: A number of policymakers have suggested they're inclined not to
Speaker 9: raise rates November first, and expected CPI could ratify that,
Speaker 9: while at upside surprise may push market rates up in
Speaker 9: a expectation those FED officials will change their minds. Michael
Speaker 9: McKee Bloomberg Radio.
Speaker 2: Onto the trial of Sam Bankman Free today. His former
Speaker 2: business partner and former girlfriend, Caroline Ellison, was on the
Speaker 2: stand for a second day. She told the jury Bankment
Speaker 2: Freed directed her to orchestrate a massive fraud at FTX
Speaker 2: and its related hedge fund Alimeter Research. Tomorrow, that is
Speaker 2: Thursday here in New York. Ellison will be cross examined
Speaker 2: by Bankman Freed's lawyers. Bloomberg's Angela Moon tells us how
Speaker 2: the defense will try to refute Ellison's testimony.
Speaker 10: Basically, their strategy has all been all along that Sam
Speaker 10: Bankmint Freed was unable to if he committed crime. He
Speaker 10: wasn't able to do this alone, right, He had his
Speaker 10: inner circle, He had advisers who were advising him, and
Speaker 10: they specifically mentioned that she was put in this role
Speaker 10: so that she could hedge the customer's money, so that
Speaker 10: when things got bad, that she was basically the one
Speaker 10: that he was going to really rely on to get
Speaker 10: them out of trouble. They're going to be very vocal
Speaker 10: about the fact that she did not do her job well.
Speaker 10: And part of the reason why the SPF empire fell
Speaker 10: was because they had an incompetent CEO, that is.
Speaker 2: Bloomberg's Angela Moon. Now Bankman Freed has admitted he did
Speaker 2: make several mistakes, but he has denied intentionally defrauding anyone.
Speaker 3: Bran Well onto some corporate news. Shares of German footwear
Speaker 3: maker Birkenstock dropped twelve point six percent today in its
Speaker 3: debut and more from Bloomberg's Charlie Pellett.
Speaker 11: According to data compiled by Bloomberg, the German sandal maker's
Speaker 11: debut was the worst opening for a listing of one
Speaker 11: billion dollars or more in New York in over two years.
Speaker 11: The data show, out of more than three hundred usipos
Speaker 11: of that size in the past century, only nine have
Speaker 11: fared worse, the last being app Love and Corp, which
Speaker 11: opened twelve and a half percent below its IPO price
Speaker 11: in April of twenty twenty one in New York. Charlie
Speaker 11: Pellet Bloomberg Radio.
Speaker 2: The head of the French Central Bank, says that China
Speaker 2: must play by global rules if it wants to get
Speaker 2: more sway at the IMF. Here is Bloomberg's von Man
Speaker 2: from Hong Kong.
Speaker 12: Central Bank Chief Francois Villoi de Galjo said a revision
Speaker 12: of the voting shares including China, will be inevitable, but
Speaker 12: he said those countries must play by the rules. Villoy
Speaker 12: also said a future shakeup at the IMF could be
Speaker 12: an opportunity to create European groupings behind board seats. It
Speaker 12: can also change majority voting rules to soften the veto
Speaker 12: power of some countries. Vilori's comments are in contrast with
Speaker 12: a position taken by the US. The US has been
Speaker 12: calling for an equiproportional increase of quotas that would boost
Speaker 12: contributions to the fund without reallocating voting shares in Hong Kong,
Speaker 12: i'm Von Mann Bloomberg Radio.
Speaker 2: Separately, US Treasury Secretary Janet Yellen is planning to meet
Speaker 2: this week with China's Central Bank governor Penggong Sheen. That
Speaker 2: will happen in Morocco, and she is hoping to make
Speaker 2: some progress on the debt relief talks that include China.
Speaker 3: And perhaps bearing out what Yvon was just reporting on
Speaker 3: Doug China has reached a tentative debt agreement with Sri Lanka,
Speaker 3: ruffling feathers at the IMF.
Speaker 1: Bloomberg's Bonnie al with that story from Hong Kong.
Speaker 13: The IMF was caught off guard by China front running
Speaker 13: IMF negotiations with Sri Lanka by striking this deal. The
Speaker 13: IMF and various Paris Club members had been expected to
Speaker 13: hold talks on a deal this week. China's Foreign Ministry
Speaker 13: said the deal between the Export Import Bank of China
Speaker 13: and Sri Lanka was reached late last month, but it
Speaker 13: only emerged this week as a result. SOSA say an
Speaker 13: announcement on the IMF Paris Club deal now looks unlikely.
Speaker 13: In Hong Kong, I'm Bonnie Al Bloomberg Radio and.
Speaker 3: Joining us now to discuss the latest on the House
Speaker 3: Speakership vote is Joe Matthew, host of Bloomberg Sound On,
Speaker 3: and So I guess there were a few surprising moves today.
Speaker 1: What caught you most off guard, Joe?
Speaker 14: The fact that we got a nominee for starters the
Speaker 14: whole day was kind of a surprise, to be honest
Speaker 14: with you. We woke up this morning with the idea
Speaker 14: that this would go on for days, if not weeks,
Speaker 14: before anything ever came to the floor, because Republicans wanted
Speaker 14: to settle on a nominee to avoid the embarrassment of
Speaker 14: what we saw last January fifteen rounds that it took
Speaker 14: for Kevin McCarthy. But there was a very interesting turn.
Speaker 14: There was an effort to actually raise the threshold for
Speaker 14: that nomination to mirror the majority that would be required
Speaker 14: on the floor. That failed, in large part because Steve
Speaker 14: Scalise mobilized the troops to vote against it, and that
Speaker 14: gave him the opportunity to close the deal.
Speaker 15: Today. The question is how long.
Speaker 14: Will it take for him to actually get the votes
Speaker 14: needed to win the speakership, because it appears they still
Speaker 14: will not go to the floor until then, or will
Speaker 14: they Either way, there's a lot of confusion and chaos
Speaker 14: still around this whole story.
Speaker 2: So Joe, where does that leave us when it comes
Speaker 2: to aid not only for Ukraine but Israel as well.
Speaker 14: Well, that's a great question, because nothing can happen, and
Speaker 14: until there is a speaker they're talking about it. I
Speaker 14: spoke with Michael McCall earlier today, who chairs the House
Speaker 14: Foreign Affairs Committee and is close to leadership.
Speaker 15: He voted for Steve Scalise and.
Speaker 14: Has already has a promise from the Speaker in waiting,
Speaker 14: assuming that Scalice gets the gavel, that the first order
Speaker 14: of business will be to bring McCall's resolution on Israel
Speaker 14: to the floor. That would condemn the attack and express
Speaker 14: support for Israel and set the stage for a supplemental
Speaker 14: funding request. But Doug, it's important here. We're talking now
Speaker 14: about combining funding for Israel, funding for Ukraine, funding for Taiwan,
Speaker 14: and for border security all in a single bill. There's
Speaker 14: strategy essentially to dare people to vote no against.
Speaker 15: Any of them.
Speaker 3: Yeah, exactly, because of the urgency that I was about
Speaker 3: to mention. We also heard from Israel's Prime minister and
Speaker 3: the Defense minister today about wiping out Hamas. And in
Speaker 3: addition to that, you had these air raid sirens sounding
Speaker 3: in northern Israel. That raises a specter of his Blah
Speaker 3: getting much more involved in this. I'm curious so because
Speaker 3: I know this will have come up in the shows
Speaker 3: that you've done and from talking to guests today, what
Speaker 3: might have raised some hairs on the back of your neck.
Speaker 14: Well, that's the great worry right now. This is what's
Speaker 14: keeping people up at night, that if this breaks out
Speaker 14: to the north, it's going to change the game. And
Speaker 14: it's partly why we now have not one, but two
Speaker 14: aircraft carrier groups that are steaming toward the eastern Mediterranean
Speaker 14: as a deterrent to keep Iran out of this, to
Speaker 14: keep Hezbollah out of this. But look, you hear sirens
Speaker 14: like that today and you immediately think that something's going
Speaker 14: on here.
Speaker 15: The Israelis did go out.
Speaker 14: Of their way to say that that was not what
Speaker 14: first was thought, that there was no incursion into Israeli airspace.
Speaker 14: But you know, look, this is an extremely delicate moment.
Speaker 14: Right now, and if we do see things break out
Speaker 14: to the north, it's going to be a military problem,
Speaker 14: it's going to be a problem for the oil market,
Speaker 14: and it's going to change the conversation in Washington most definitely.
Speaker 2: And Treasury Secretary Yellen was saying that her department is
Speaker 2: going to continue to review sanctions on not only Iran,
Speaker 2: Hamas and hezbalah Is. Within Congress, are there calls for
Speaker 2: tougher sanctions right now?
Speaker 14: Sanctions have been less a part of the conversation, although
Speaker 14: we are hearing about it. I think there's a drive
Speaker 14: to start enforcing the sanctions that are in place, whether
Speaker 14: you're talking about Iran or Russia for that matter, But
Speaker 14: there seems to be just a general sort of I
Speaker 14: don't know if I should use the word realization, because
Speaker 14: not everybody agrees on this, but there's a thought that
Speaker 14: sanctions just have not been working and that there needs
Speaker 14: to be a different approach. If not stronger enforcement, then
Speaker 14: maybe we should be talking secondary sanctions or something beyond that.
Speaker 14: But we can't even get a resolution passed in the
Speaker 14: House right now, and we'll take things one step at
Speaker 14: a time.
Speaker 3: You know, Joe, I'm just curious if we go back
Speaker 3: to the speakership vote again, how involve the Democrats are
Speaker 3: sort of feeling they must get here in order to.
Speaker 1: Press the vote and press the action.
Speaker 15: Well, look, they'll tell you that they're prepared to.
Speaker 14: Vote for a man named how Kim Jeffries, and that
Speaker 14: Democrats are not going to go out of their way
Speaker 14: to help Republicans figure this out because they do see
Speaker 14: a long game here that brings us to an election
Speaker 14: at the end of the year that could mean Democrats
Speaker 14: retaking the majority in the House. They're not going to
Speaker 14: help Republicans try to limit the chaos. In other words,
Speaker 14: at least that's been the case so far. We are allowing, however,
Speaker 14: for some deal making to take place. Steve Scalise has
Speaker 14: worked with Democrats in the past and is very different
Speaker 14: than Jim Jordan. Could be cutting a deal as we
Speaker 14: speak with Hakim Jeffries or with the White House, and
Speaker 14: that's the part that happens behind the scenes that we
Speaker 14: just don't know about. But I wouldn't expect to see
Speaker 14: a lot of Democrats voting Scalise on the floor.
Speaker 2: So we avoided a shutdown a couple of weeks back
Speaker 2: funding through November seventeenth. Is there a high risk that
Speaker 2: we could be facing the threat of another shutdown in
Speaker 2: a big way?
Speaker 15: Absolutely.
Speaker 14: I mean, look that there were thoughts of creating a
Speaker 14: caretaker speakership with Patrick McHenry, who's the Speaker pro tem
Speaker 14: right now, has no real power but just to avoid
Speaker 14: the shutdown. So it appears that there is going to
Speaker 14: be an effort to get this figured out before then,
Speaker 14: But that doesn't mean that the work will be done.
Speaker 14: The House has only gotten through four bills. The Senate
Speaker 14: has all of the appropriations that it needs to, so
Speaker 14: now we're talking about another continuing resolution. Both Jim Jordan
Speaker 14: and Steve Scalise have acknowledged that that would be likely
Speaker 14: the next step if they became speaker, because there's no way.
Speaker 3: They're going to have a budget ready for the seventeenth
Speaker 3: of November. Joe, probably the question you're dreading. Has Donald
Speaker 3: Trump weighed in at all, privately or publicly.
Speaker 14: On the speaker fight. Absolutely, and it probably helped us
Speaker 14: get to this point. He endorsed Jim Jordan, and that
Speaker 14: might be the very reason why Jim Jordan did not
Speaker 14: become the nominee today. It did not help him in
Speaker 14: any regard Donald Trump was talking about coming up here.
Speaker 14: He did not do that, but you're hearing analysts on
Speaker 14: both sides of the aisle say Trump lost another one.
Speaker 3: This is Bloomberg Daybreak Asia, your morning brief on the
Speaker 3: stories making news from Hong Kong to Singapore and Wall Street.
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Speaker 1: I'm Brian Curtis.
Speaker 2: And I'm Doug Prisner. Join us again tomorrow for all
Speaker 2: the news you need to start your day right here
Speaker 2: on Bloomberg day Break Asia.