WEBVTT - Israel Strikes Over 100 Targets; Biden's Prime-Time Speech On the War 0:00:02.480 --> 0:00:03.040 Good morning. 0:00:03.080 --> 0:00:05.920 I'm Nathan Hager and I'm Karen Moscow. Here are the 0:00:05.960 --> 0:00:07.480 stories we're following today. 0:00:07.880 --> 0:00:10.280 We begin with an appeal to the American people from 0:00:10.320 --> 0:00:13.920 President Biden. As the wars in Israel and Ukraine rage on. 0:00:14.200 --> 0:00:17.320 The President used a rare primetime address from the Oval 0:00:17.320 --> 0:00:20.720 Office to make the case that both conflicts represent parallel 0:00:20.760 --> 0:00:22.000 fights for democracy. 0:00:22.480 --> 0:00:25.759 I know these conflicts can seem far away, and snatch 0:00:25.760 --> 0:00:28.720 will ask why does this matter to America? So let 0:00:28.760 --> 0:00:31.800 me share with you why making sure Israel and Ukraine 0:00:31.840 --> 0:00:36.240 succeed is vital for America's national security. You know, history 0:00:36.240 --> 0:00:38.600 has taught us that when terrorists don't pay a price 0:00:38.640 --> 0:00:41.680 for their terror, when dictators don't pay a price for 0:00:41.720 --> 0:00:45.919 their aggression, they cause more chaos and death and more destruction. 0:00:47.080 --> 0:00:49.839 They keep going, and the cost and the threats to 0:00:49.920 --> 0:00:51.440 America and the world keep rising. 0:00:52.000 --> 0:00:55.080 In his roughly fifteen minute speech, President Biden argue that 0:00:55.160 --> 0:00:59.040 supporting Ukraine and Israel is vital for America's national security. 0:00:59.160 --> 0:01:01.920 The White House now plans of formal request to Congress 0:01:01.920 --> 0:01:05.000 for about one hundred billion dollars in resources for both countries, 0:01:05.160 --> 0:01:08.080 along with Taiwan and the Southern US border. 0:01:08.040 --> 0:01:08.559 Well, Nathan. 0:01:08.560 --> 0:01:11.400 The President's speech comes as tensions heightened in the Middle 0:01:11.400 --> 0:01:14.520 East and Bloomberg's Oliver Crook is covering the war from Tel. 0:01:14.319 --> 0:01:17.679 Aviv and as fears of escalation and spillover mount. We 0:01:17.680 --> 0:01:19.959 should also say Hamas has called for a day of 0:01:20.080 --> 0:01:23.160 rage today across the Islamic world, where last time they 0:01:23.160 --> 0:01:25.680 called for it we saw protesters take to the street, 0:01:25.760 --> 0:01:28.680 really raising the temperatures. Also raising the temperatures of the 0:01:28.800 --> 0:01:31.200 United States, saying that they're seeing more drone attacks and 0:01:31.240 --> 0:01:34.040 their installations in Iraq and Syria, and that they've also 0:01:34.160 --> 0:01:38.319 intercepted fire from Yemen headed towards Israel. There is the 0:01:38.400 --> 0:01:41.680 small matter of a huge country that sits between Yemen 0:01:41.720 --> 0:01:45.880 and Israel, It's called Saudi Arabia, with huge geopolitical influence. 0:01:45.920 --> 0:01:49.360 And Bloomberg's Oliver Crook says the death toll continues to mount. 0:01:49.440 --> 0:01:52.559 More than fourteen hundred people in Israel have been killed. 0:01:52.560 --> 0:01:55.520 The Hamas run Gaza Health Ministry says more than thirty 0:01:55.560 --> 0:01:58.360 seven hundred Palestinians have also been killed. 0:01:58.440 --> 0:02:00.840 Now and Karen will have much more the war ahead. 0:02:00.880 --> 0:02:03.279 But we now turn our attention back here to the US, 0:02:03.320 --> 0:02:05.240 where a search for a Speaker of the House is 0:02:05.480 --> 0:02:09.240 still underway. Round three for Jim Jordan's quest hold the 0:02:09.280 --> 0:02:11.120 gavel is scheduled for this morning. 0:02:11.120 --> 0:02:13.640 In Bloomberg's Edd Baxter has the story. 0:02:13.560 --> 0:02:15.920 More twist and turns to even get to this space. 0:02:16.200 --> 0:02:18.680 Jordan has come off as support of an interim speaker 0:02:18.760 --> 0:02:21.640 after very heated response from his caucus. 0:02:21.960 --> 0:02:24.480 So I'm still running for speaker, and I plan to 0:02:24.520 --> 0:02:27.359 go to the floor and get the votes and win 0:02:27.400 --> 0:02:29.600 this race. But I want to go talk with a 0:02:29.600 --> 0:02:31.680 few of my colleagues, particularly, I want to talk with 0:02:32.160 --> 0:02:33.760 the twenty individuals voted against me. 0:02:34.080 --> 0:02:36.480 Whether that will land him what he needs is a 0:02:36.520 --> 0:02:39.160 big question as it hangs in the wind and delays 0:02:39.200 --> 0:02:43.720 action on aid for Israel or Ukraine. Ed Baxter, Bloomberg Radio. 0:02:43.840 --> 0:02:45.919 All right, Ed, thank you, We turned to the markets now. 0:02:46.000 --> 0:02:48.560 Jay Powell signaling the Fed will stand pat at it's 0:02:48.639 --> 0:02:51.680 November meeting. After speaking at the Economic Club of New York, 0:02:51.720 --> 0:02:55.200 the fetch here told Bloomberg's David Weston the economy is 0:02:55.240 --> 0:02:58.360 doing a good job of handling tighter monetary policy. 0:02:58.840 --> 0:03:01.440 So the evidence of your eyes is that the economy 0:03:01.520 --> 0:03:06.000 is handling much higher rates at least for now without difficulties. 0:03:06.040 --> 0:03:10.040 So notionally, that might tell you that the neutral rate 0:03:10.080 --> 0:03:11.720 has risen, or it may just tell you that we 0:03:11.760 --> 0:03:14.360 haven't had rates high enough for long enough. If we 0:03:14.360 --> 0:03:17.359 have models for everything, we have formulists for everything. Ultimately, 0:03:17.400 --> 0:03:21.200 as a practitioner, we have to focused on what the 0:03:21.240 --> 0:03:24.520 economy is telling us, even taking legs into account, what's 0:03:24.560 --> 0:03:25.200 it telling us? 0:03:25.600 --> 0:03:28.320 Does it feel like policy is too tight right now? 0:03:28.360 --> 0:03:29.320 I would have to say no. 0:03:29.880 --> 0:03:31.679 I think the evidence is not that a policy is 0:03:31.720 --> 0:03:32.560 too tight right now. 0:03:33.960 --> 0:03:36.280 And the Fed chief also said a recent run up 0:03:36.280 --> 0:03:39.200 and long term treasury yields, if they persist, could lessen 0:03:39.200 --> 0:03:41.960 the need for further hikes at the margin. For the 0:03:41.960 --> 0:03:44.680 full conversation with FED chair J Powell, head over to 0:03:44.720 --> 0:03:49.120 our Bloomberg Talks podcast feed, available anywhere you get your podcasts. 0:03:49.160 --> 0:03:51.440 Well, Karen, there was plenty of reaction to Powell's remarks. 0:03:51.520 --> 0:03:54.560 Yields on two your treasuries declined tenure yields paired an 0:03:54.600 --> 0:03:57.280 increase that pushed them near the five percent mark. Former 0:03:57.320 --> 0:03:59.760 New York Fed President Bill Dudley says Powell was pretty 0:03:59.760 --> 0:04:01.320 out the mystic about the economy. 0:04:01.680 --> 0:04:03.960 Basically, you got the impression that he's pretty comfortable with 0:04:04.000 --> 0:04:06.400 the level of rates and the fact that the economy 0:04:06.440 --> 0:04:08.640 is a little stronger than expected, well that's a you know, 0:04:08.720 --> 0:04:11.200 that's a nice problem to have. And the fact that 0:04:11.240 --> 0:04:13.280 boniles are a little higher, well that's actually maybe going 0:04:13.320 --> 0:04:14.760 to help deal with the fact that. 0:04:14.920 --> 0:04:16.480 Growth is a little bit stronger than expected. 0:04:16.720 --> 0:04:18.880 He also implied that he expected growth to slow in 0:04:18.920 --> 0:04:21.480 the fourth quarter going into next year. So yeah, I 0:04:21.480 --> 0:04:24.280 think the Fed's on hold until they see whether the 0:04:24.320 --> 0:04:26.479 economy is slow as much as they anticipate or not. 0:04:26.880 --> 0:04:29.000 Former New York Fed President Bill Dudley is now a 0:04:29.000 --> 0:04:30.359 Bloomberg opinion columnist. 0:04:30.760 --> 0:04:33.760 Well, many on Wall Street think rate hikes are over Nathan. 0:04:33.800 --> 0:04:36.880 In fact, in our latest Bloomberg Monthly survey, economists think 0:04:36.920 --> 0:04:39.799 the Fed is done raising rates, but they also anticipate 0:04:39.839 --> 0:04:42.840 a slower pace of rate cuts next year. The economists 0:04:42.839 --> 0:04:46.240 are also raising their growth projections and reducing their odds 0:04:46.240 --> 0:04:46.880 of a recession. 0:04:47.200 --> 0:04:49.799 There's also some optimism on the auto strike. This morning. 0:04:49.880 --> 0:04:52.640 Karen, a top union negotiator, says General Motors and the 0:04:52.760 --> 0:04:55.440 United Auto Workers are moving toward a tentative agreement that 0:04:55.480 --> 0:04:57.520 would put an end to a major strike that has 0:04:57.560 --> 0:05:00.120 dragged on for more than a month. GM, along with 0:05:00.200 --> 0:05:02.320 rivals Ford and Stillantis, have been trying to cut a 0:05:02.360 --> 0:05:05.040 deal to end a walk out that started September fifteenth. 0:05:05.120 --> 0:05:07.400 A GM spokesperson declined to comment. 0:05:07.800 --> 0:05:10.200 Another corporate news Nathan, more job cuts may be on 0:05:10.240 --> 0:05:13.159 the way at UBS. The Financial News is reporting the 0:05:13.200 --> 0:05:15.680 Swiss bank is poised to target about ten percent of 0:05:15.680 --> 0:05:19.040 its support staff at credit Sueeze. UBS is taking over 0:05:19.080 --> 0:05:22.760 its longtime Swiss rival and a government orchestrated deal and 0:05:22.839 --> 0:05:25.760 pairing a combined workforce that swelled to about one hundred 0:05:25.760 --> 0:05:26.600 and twenty thousand. 0:05:26.920 --> 0:05:29.360 Let's get you updated on the Sam Bankman freed Trialcaren. 0:05:29.400 --> 0:05:32.200 The third week ended with the testimony of FTX former 0:05:32.279 --> 0:05:35.080 general counsel can Son, who told the court he resigned 0:05:35.120 --> 0:05:38.159 after finding a massive hole in ftx's balance sheet. The 0:05:38.200 --> 0:05:40.760 trial will now take a week long break. It's due 0:05:40.800 --> 0:05:43.279 to resume October twenty sixth. 0:05:46.680 --> 0:05:47.240 Sorry, Nathan. 0:05:47.279 --> 0:05:48.640 Thanks. It's time now for a look at some of 0:05:48.640 --> 0:05:50.880 the other stories making news around the world. For that, 0:05:50.960 --> 0:05:54.440 we're joined by Bloomberg's John Tucker, John Good Morning, and. 0:05:54.400 --> 0:05:58.359 Karen the Pentagonist reaffirming that Israel was not behind that 0:05:58.480 --> 0:06:01.159 deadly rocket strike on a how but in Ganza this week, 0:06:01.480 --> 0:06:04.560 Rerigadier General pat Ryder says the US is using its 0:06:04.600 --> 0:06:06.440 own information to make the determination. 0:06:06.839 --> 0:06:09.480 It is our assessment that Israel was not responsible for 0:06:09.520 --> 0:06:15.000 that explosion. We're continuing to assess that. Initial indications are 0:06:15.360 --> 0:06:19.720 that this was from an errant rocket that was launched 0:06:19.839 --> 0:06:21.800 by the Palestinian Islamic Jahad. 0:06:22.080 --> 0:06:25.200 Hundreds were killed in the attack. The president of New 0:06:25.279 --> 0:06:29.159 York based private equity giant Blackstone, John Gray, says he 0:06:29.240 --> 0:06:32.679 remains committed to funding low income students and cancer research 0:06:32.760 --> 0:06:36.599 at the University of Pennsylvania, while acknowledging concerns over anti 0:06:36.600 --> 0:06:38.080 Sabbitic speech on campus. 0:06:38.440 --> 0:06:41.120 Some of my colleagues in the financial field and more 0:06:41.160 --> 0:06:46.679 broadly have raised some really legitimate concerns about hate speech 0:06:47.240 --> 0:06:52.200 masquerading as free speech in the context of anti Semitism 0:06:52.560 --> 0:06:55.720 on college campuses at penn and other places. 0:06:55.839 --> 0:06:58.560 Jan has bet the center of controversy at her high 0:06:58.600 --> 0:07:02.279 profile alum demanded that the president and board chair stepped down. 0:07:02.960 --> 0:07:05.839 A Maryland Circuit Court judge was fatally shot in the 0:07:05.920 --> 0:07:09.200 driveway of his home last night. Circuit Court Judge Andrew 0:07:09.200 --> 0:07:12.800 Wilkinson was found with the parent gunshot wounds around eight pm. 0:07:13.000 --> 0:07:16.200 He was taken from his home in Hagerstown Demeritis Medical Center, 0:07:16.400 --> 0:07:19.760 where he died of his injuries. The Sheriff's office investigating 0:07:19.760 --> 0:07:22.680 the fatal shooting. That Army private, who fled to North 0:07:22.720 --> 0:07:25.960 Korea before being returned home to the US last month, 0:07:26.240 --> 0:07:28.760 has now been detained by the US military and is 0:07:28.800 --> 0:07:33.800 facing charges including desertion and possessing sexual images of a child. 0:07:33.880 --> 0:07:36.920 The accounts against Private Travis king Or detailed in a 0:07:37.080 --> 0:07:41.320 charging document CVS. Calling some of the most common decongestions 0:07:41.360 --> 0:07:44.280 off the store shelves, An advisory panel at the FDA 0:07:44.400 --> 0:07:48.160 declared that the common ingredient in cold medicines, fenel efrine, 0:07:48.160 --> 0:07:51.000 does not work. It's supposed to be the decongested and 0:07:51.080 --> 0:07:53.840 cold medications. It's in some of the most known and 0:07:53.880 --> 0:07:57.720 widely used cold medications. Global news twenty four hours a day, 0:07:57.920 --> 0:08:00.000 wherever you want it with Bloomberg News. 0:08:00.120 --> 0:08:00.400 Now. 0:08:00.520 --> 0:08:03.119 I'm John Tucker and this is Bloomberg Karen. 0:08:03.240 --> 0:08:05.160 All right, John, thank you well. We do bring you 0:08:05.240 --> 0:08:07.920 news throughout the day here on Bloomberg Radio. But now, 0:08:08.000 --> 0:08:10.240 as John said, you can get the latest news on 0:08:10.320 --> 0:08:14.280 demand whenever you want it. Subscribe to Bloomberg News Now 0:08:14.280 --> 0:08:16.560 to get the latest headlines at the click of a button. 0:08:16.880 --> 0:08:20.080 Get informed on your schedule. You can listen and subscribe 0:08:20.120 --> 0:08:23.600 to Bloomberg News Now on the Bloomberg Business app, Bloomberg 0:08:23.640 --> 0:08:27.240 dot com, plus Apple, Spotify, and anywhere else you get 0:08:27.280 --> 0:08:31.160 your podcasts. It is time now for the Bloomberg Sports updates, 0:08:35.760 --> 0:08:37.720 and here's John Stash Hour John. 0:08:37.880 --> 0:08:39.240 Karn Thursday Night Football. 0:08:39.240 --> 0:08:42.080 To kick off Week seven, the Jaguars in New Orleans 0:08:42.080 --> 0:08:45.080 to face the Saints. Jacksonville jumped in front twenty four 0:08:45.120 --> 0:08:48.120 to nine. Travis Etn scored twice. The Jags had a 0:08:48.200 --> 0:08:50.640 pick six back came the Saints to tie the game. 0:08:51.200 --> 0:08:53.360 Jacksonville ball just over three minutes left. 0:08:53.440 --> 0:08:56.160 Jock you going empty backfield for driver three right two 0:08:56.240 --> 0:08:59.960 Lefty drops look, checks it down underneath. That's a cross 0:09:00.120 --> 0:09:04.040 round to Christin Karkcurty twenty five, twenty fifty ten. Christian 0:09:04.120 --> 0:09:10.480 Kirk pull one touchdown Jacksonville, but crossing route to Christian Kirk. 0:09:10.600 --> 0:09:12.680 Tags Radio had it and they beat the Saints thirty 0:09:12.760 --> 0:09:15.679 one to twenty four. Jacksonville's now won four games in 0:09:15.720 --> 0:09:17.400 a row at five and two it's their best start 0:09:17.720 --> 0:09:20.000 since two thousand and seven. Jimmy Garoppolo is not going 0:09:20.040 --> 0:09:22.520 to play for the Raiders Sunday against Chicago. He's got 0:09:22.520 --> 0:09:24.839 a back injury, and the Bears are expected to be 0:09:24.880 --> 0:09:26.760 without justin fields. Not knowing if the Raiders will go 0:09:26.800 --> 0:09:30.560 with the veteran Brian Hoyer or the rookie Aidan O'Connell. 0:09:30.720 --> 0:09:33.400 Sean Watson may play Sunday for Cleveland. He missed last 0:09:33.400 --> 0:09:37.000 week's game with a shoulder injury. Baseball Playoffs, the Arizona 0:09:37.040 --> 0:09:39.280 Diamondbacks top the Phillies two to one, and the con 0:09:39.360 --> 0:09:41.439 Tell Marte hit bottom of the ninth to eighty his 0:09:41.559 --> 0:09:43.360 hurt third hit of the game as the d Backs 0:09:43.440 --> 0:09:45.240 take a lead in the series for the first time, 0:09:45.240 --> 0:09:47.680 but the Phillies are still up two games to one 0:09:47.760 --> 0:09:51.600 with Game four tonight in Phoenix. All Astros in Texas 0:09:51.640 --> 0:09:54.600 taking Game four ten to three. Jose Abrad who had 0:09:54.600 --> 0:09:57.040 a big three run homer, Chas McCormick at two run 0:09:57.120 --> 0:10:00.000 shot for Jose al two by three hits three runs. 0:10:00.240 --> 0:10:03.520 That series is now tie to two heading into today's 0:10:03.559 --> 0:10:07.000 Game five, justin Berland are against Jordan mcgommery, John Stashy. 0:10:07.000 --> 0:10:08.160 I were Bloomberg. 0:10:07.720 --> 0:10:13.680 Sports from coast to coast, from New York to San Francisco, 0:10:14.000 --> 0:10:18.600 Boston to Washington, DC, nationwide on Syrias exam the Bloomberg 0:10:18.679 --> 0:10:22.840 Business app in Bloomberg dot Com. This is Bloomberg Daybreak. 0:10:24.080 --> 0:10:27.120 Good morning, I'm Nathan Hager. On day fourteen of war 0:10:27.200 --> 0:10:29.760 between Israel and Hamas. There are new concerns about a 0:10:29.760 --> 0:10:33.079 wider conflict, with US bases in Iraq and Syria experiencing 0:10:33.120 --> 0:10:36.199 attacks at runback groups and Yemen trying to fire missiles 0:10:36.200 --> 0:10:40.000 at Israel. All as President Biden defense continued US support 0:10:40.000 --> 0:10:43.280 for Israel and Ukraine in a direct appeal to the 0:10:43.320 --> 0:10:44.000 American people. 0:10:44.120 --> 0:10:47.240 I'm awesome food and represent different threats, but they share 0:10:47.280 --> 0:10:50.640 this in common. They both want to completely annihilate in 0:10:50.720 --> 0:10:51.840 neighboring democracy. 0:10:51.880 --> 0:10:55.120 Completely annihilated, President Biden speaking. They're in a rare Oval 0:10:55.160 --> 0:10:58.280 office address this morning. We're joined by a team of reporters. 0:10:58.320 --> 0:11:01.480 Bloomberg's news director for Europe, the Least and Africa, Roslind 0:11:01.520 --> 0:11:04.640 Matheson is with us, along with Bloomberg's Oliver Crook in 0:11:04.679 --> 0:11:05.160 Tel Aviv. 0:11:05.200 --> 0:11:06.040 Good morning to you both. 0:11:06.040 --> 0:11:08.040 I want to start with you Oliver for just to 0:11:08.040 --> 0:11:10.840 get the latest on what's been happening overnight in the 0:11:10.840 --> 0:11:12.200 war between Israel and Hamas. 0:11:12.720 --> 0:11:14.640 So some of the context we should give for Friday 0:11:14.640 --> 0:11:16.760 today is another day of rage that has been called 0:11:17.240 --> 0:11:19.480 by Hamas. So this is sort of protests across the 0:11:19.559 --> 0:11:21.760 Islamic world, is what they called for last week. We 0:11:21.800 --> 0:11:23.960 saw this, you know, thousands took to the streets. And 0:11:24.040 --> 0:11:26.960 it comes as the IDEF continues to strike targets in Gaza, 0:11:27.000 --> 0:11:30.160 continues to strike targets in Lebanon. It has not sort 0:11:30.200 --> 0:11:32.880 of escalated dramatically on the border of Lebanon, but there 0:11:32.920 --> 0:11:35.719 are still skirmishes there. There are more civilians evacuating from 0:11:35.720 --> 0:11:37.760 the north, and as you mentioned, the US saying that 0:11:37.840 --> 0:11:40.720 seeing some of their installations coming under more attack in 0:11:40.720 --> 0:11:44.480 Iraq and Syria. And also these missiles apparently intercepted by 0:11:44.520 --> 0:11:47.280 the US Navy fired from Yemen. And there's a small 0:11:47.320 --> 0:11:50.160 matter of a big country of huge influence in the 0:11:50.200 --> 0:11:52.880 region that sits between Yemen and Israel, and that is 0:11:52.920 --> 0:11:55.600 Saudi Arabia, And that'll push us forward to a summit 0:11:55.640 --> 0:11:58.240 that we understand will be held tomorrow in Egypt, where 0:11:58.320 --> 0:12:00.720 again there's a lot of information on the flying around, 0:12:00.760 --> 0:12:03.240 and according to people familiar that we have that the 0:12:03.240 --> 0:12:06.040 Crown prints will be at that meeting, along with President Erdawan, 0:12:06.280 --> 0:12:08.600 the King of Jordan, and some representative from Western and 0:12:08.600 --> 0:12:11.960 European countries as well, to discuss peace in Caira. 0:12:12.320 --> 0:12:16.080 There has been a real difficulty getting the Arab world 0:12:16.120 --> 0:12:18.800 more involved in what's happening here to try to keep 0:12:18.840 --> 0:12:23.120 this conflict contained. Rosalind matheson what's your assessment of how 0:12:23.200 --> 0:12:25.359 diplomacy is going at this point. 0:12:25.640 --> 0:12:27.880 Well, certainly, we do know there's a lot of conversation 0:12:28.080 --> 0:12:31.080 going on, as Oliver was just pointing out, although how 0:12:31.120 --> 0:12:34.640 you have a peace summit without Israel is slightly tricky 0:12:35.120 --> 0:12:37.920 given there at they're a key player in the conflict. 0:12:37.960 --> 0:12:39.920 Obviously with Hamas. 0:12:39.559 --> 0:12:41.880 We do know that there is an endless parade of 0:12:41.880 --> 0:12:45.720 officials from Europe and elsewhere into the region. We do 0:12:45.840 --> 0:12:48.880 know that also the Arab's talking to each other. A 0:12:48.960 --> 0:12:51.240 very important thing to note this morning is that we're 0:12:51.280 --> 0:12:54.080 hearing that the leaders of Saudi Arabia and the UAE 0:12:54.320 --> 0:12:57.560 are holding a meeting. That's their first public meeting that 0:12:57.600 --> 0:13:00.600 we know of in three years in real and that's 0:13:00.600 --> 0:13:04.520 a very significant mood, because that shows perhaps a desire 0:13:04.640 --> 0:13:08.120 on the part of these key powerbrokers in the region 0:13:08.240 --> 0:13:12.080 to work together to limit the possibility of contagion from 0:13:12.080 --> 0:13:14.960 this conflict. We do know that some of these states 0:13:14.960 --> 0:13:18.400 are under pressure from their own people who angry what 0:13:18.480 --> 0:13:22.440 they sees the treatment of people inside Gaza. But equally, 0:13:22.520 --> 0:13:25.800 the leaders of these countries have been working delicately and 0:13:25.840 --> 0:13:29.960 carefully towards sort of improving ties with Israel and certainly 0:13:30.320 --> 0:13:33.199 sort of keeping a greater calm across the region, promoting 0:13:33.280 --> 0:13:37.800 economic and trade their economies and trade and investment. So 0:13:37.800 --> 0:13:40.240 they've got an interest in doing that. So that's one 0:13:40.280 --> 0:13:42.480 meeting that's happening this morning. It's very much when we 0:13:42.480 --> 0:13:43.520 should pay attention to. 0:13:44.000 --> 0:13:47.640 As we await the comments from Arab leaders. Alie, we 0:13:47.720 --> 0:13:50.480 did hear from President Biden last night from the Oval 0:13:50.480 --> 0:13:53.480 Office defending continued US support for Israel as well as 0:13:53.600 --> 0:13:57.760 Ukraine and other global conflict points around the world. How 0:13:57.840 --> 0:14:01.400 is that message from the President being re in Israel? 0:14:01.880 --> 0:14:04.040 I mean, I think it's received positively in Israel. He 0:14:04.080 --> 0:14:05.720 echoed many of the things that he said when he 0:14:05.760 --> 0:14:07.760 was here in Tel Aviv just a few days ago. 0:14:07.800 --> 0:14:09.800 But I think that the tougher cell and the cell 0:14:09.840 --> 0:14:12.560 that is more important for Israelis is how is this 0:14:12.600 --> 0:14:14.920 going to go down with the American people? And this 0:14:14.960 --> 0:14:17.840 is a question that Biden asked openly. Why should the Americans? 0:14:17.880 --> 0:14:20.120 Why does this matter to the American people? And this 0:14:20.200 --> 0:14:23.040 is where he was saying that basically terrorism and dictatorship 0:14:23.080 --> 0:14:26.000 here talking about Hamas and Putin need to pay the price, 0:14:26.240 --> 0:14:28.280 otherwise there will be more death, more destruction, and it 0:14:28.360 --> 0:14:31.440 is in the national security interests of the United States. 0:14:31.640 --> 0:14:33.680 And he does this appeal to the people of the 0:14:33.760 --> 0:14:35.920 United States because he's going to ask for a lot 0:14:35.960 --> 0:14:38.840 of money. We understand sixty billion dollars of that is 0:14:38.880 --> 0:14:41.840 for Ukraine and fourteen billion is for Israeli defense, but 0:14:41.880 --> 0:14:45.960 also another ten for humanitarian efforts, including Gaza. And again 0:14:46.040 --> 0:14:49.520 he warned Israel in this speech, as he's done repeatedly, 0:14:49.600 --> 0:14:52.320 evoking nine to eleven, saying the US sought revenge, they 0:14:53.360 --> 0:14:56.040 got justice, but they should not be blinded by rage 0:14:56.040 --> 0:14:57.320 because they made mistakes. 0:14:58.080 --> 0:15:01.080 What is the risk that this spills over more widely. 0:15:01.600 --> 0:15:04.840 Well, that really depends on a ground war if or 0:15:04.840 --> 0:15:07.560 when it starts. It certainly seems that is Israel's intent 0:15:08.080 --> 0:15:10.200 still to go into Gaza and what that looks like. 0:15:10.520 --> 0:15:13.520 We do know that there's been some discussion, including from 0:15:13.560 --> 0:15:16.760 the US, about perhaps helping frame that. Would it be 0:15:16.760 --> 0:15:20.160 a more targeted incursion than a full scale war and 0:15:20.160 --> 0:15:23.400 a lot will depend on that, quite frankly, but also 0:15:23.520 --> 0:15:26.080 the unknowns of Iran and does Iran just say we 0:15:26.520 --> 0:15:29.480 can't sit by, We need to do something. The risk 0:15:29.520 --> 0:15:31.280 has to be high, and that's why you're seeing that 0:15:31.360 --> 0:15:34.160 level of diplomacy in the region to try and avert it. 0:15:34.840 --> 0:15:39.120 Rosalind Matheson and Oliver Crook of Bloomberg News team coverage 0:15:39.320 --> 0:15:43.760 as the war between Israel and Hamas extends Intoday fourteen, 0:15:43.840 --> 0:15:46.440 Olie Roz, thanks to you both for being with us 0:15:46.560 --> 0:15:49.760 this morning. Now we want to turn from geopolitics to 0:15:49.840 --> 0:15:52.960 the US economy. We did hear from Federal Reserve Chairman 0:15:53.160 --> 0:15:56.800 Jerome Powell at the Economic Club of New York giving 0:15:56.840 --> 0:16:01.280 a speech followed by a conversation with bloom David Weston. 0:16:01.440 --> 0:16:03.080 Let's go to part of that discussion. 0:16:03.160 --> 0:16:06.240 Now, are you surprised at how resilient the United States 0:16:06.280 --> 0:16:08.720 economiation across the board. It seems like a very strong 0:16:08.720 --> 0:16:11.800 economy despite all you've done to try to slow it down. 0:16:13.040 --> 0:16:18.320 Yes, so we certainly have a very resilient economy on 0:16:18.360 --> 0:16:21.960 our hands. We've got the economy growing strongly. If you 0:16:22.000 --> 0:16:24.720 think back a year, many forecasts called for the US 0:16:24.720 --> 0:16:27.040 economy economy to be in recession this year. 0:16:27.440 --> 0:16:28.280 Not only has that. 0:16:28.240 --> 0:16:31.880 Not happened, growth is now running for this year above 0:16:31.960 --> 0:16:35.080 its longer run trend. So that's been a surprise, driven 0:16:35.160 --> 0:16:39.040 largely by consumer spending, driven by a very strong job 0:16:39.080 --> 0:16:43.400 market with people getting jobs with high first time nominal wages, 0:16:43.400 --> 0:16:46.160 and that as inflation has come down real wages, which 0:16:46.200 --> 0:16:49.120 is spurring spending. And we've also had inflation coming down, 0:16:49.200 --> 0:16:53.040 so you know that's it really is a story of 0:16:53.120 --> 0:16:56.160 much stronger demand. There may also be there may be 0:16:56.200 --> 0:16:59.960 some ways in which the economy is less affected by 0:17:00.080 --> 0:17:04.840 interest rates. It's hard to know precisely, but for example, companies, 0:17:05.040 --> 0:17:07.879 many companies, any company with bond market access will have 0:17:08.000 --> 0:17:11.119 termed out its debt right and therefore may not be 0:17:11.160 --> 0:17:13.560 feeling the effects of higher rates. The same may be 0:17:13.680 --> 0:17:16.640 true of homeowners who have a long term, fixed rate, 0:17:16.960 --> 0:17:20.320 low rate mortgage, who then are therefore not because it's 0:17:20.359 --> 0:17:23.720 not an adjustable rate or a higher rate, they're not 0:17:23.800 --> 0:17:26.480 feeling that increase in rates, so the economy may be 0:17:26.640 --> 0:17:30.000 somewhat less susceptible to the effects. 0:17:29.680 --> 0:17:30.440 Of rate increases. 0:17:30.480 --> 0:17:33.199 On the other hand, if you look at look at 0:17:33.240 --> 0:17:37.920 interra sensitive spending, these are very much the places where 0:17:37.920 --> 0:17:40.840 we see where we expect to see and do see effects. 0:17:40.840 --> 0:17:44.919 So for example, in housing or in you know, the 0:17:44.920 --> 0:17:46.920 housing effector has been sector. 0:17:46.600 --> 0:17:49.240 Has been very affected by higher rates, as purchases of 0:17:50.280 --> 0:17:51.000 durable goods. 0:17:51.080 --> 0:17:53.280 If you look at surveys, people will not say that 0:17:53.320 --> 0:17:54.960 it's a good time to buy a car or a house. 0:17:55.080 --> 0:17:55.960 Quite the contrary. 0:17:56.400 --> 0:18:00.639 So we see policy working through its usual channels. It 0:18:00.680 --> 0:18:02.760 may just be that rates haven't been high enough for 0:18:02.840 --> 0:18:05.520 long enough. And again it's all happening in the context 0:18:05.600 --> 0:18:06.879 of a very strong demand. 0:18:07.119 --> 0:18:08.520 We've had other speculators. 0:18:08.520 --> 0:18:10.280 Maybe the terming out of debt, as you say, both 0:18:10.320 --> 0:18:14.720 corporate debt and hustle debt, may diminish the effectiveness of 0:18:14.800 --> 0:18:17.359 rate hikes. Do you have a view of whether that's true, 0:18:17.520 --> 0:18:19.680 And if it is true, what does it say about 0:18:19.680 --> 0:18:21.600 mantre plus. Does it mean you have to go farther 0:18:22.119 --> 0:18:23.679 in the rate hikes or do you just not have 0:18:23.720 --> 0:18:24.520 the power to affect it. 0:18:25.440 --> 0:18:29.679 So no, I don't think that there's a fundamental shift 0:18:29.800 --> 0:18:32.200 in the way that interest rates affect the economy. There 0:18:32.200 --> 0:18:34.840 may be some differences in this cycle because of what 0:18:34.880 --> 0:18:38.879 I mentioned. As I mentioned, we are seeing those are 0:18:38.920 --> 0:18:40.760 the effects where we expect to see them, which is 0:18:40.800 --> 0:18:45.159 interrasensitive spending, and also asset prices to some extent in 0:18:45.200 --> 0:18:48.000 the exchange rate, which you're also seeing a strong exchange rate, 0:18:48.000 --> 0:18:51.760 which is disinflationary. So I don't think there's a fundamental 0:18:51.880 --> 0:18:54.720 change in the way monetary policy affects the economy. And 0:18:54.760 --> 0:18:57.239 again it goes back to just very strong demand. We 0:18:57.280 --> 0:19:00.000 take the economy as it is, We take fiscal power 0:19:00.680 --> 0:19:02.840 and the economy and all the things we don't control, 0:19:02.880 --> 0:19:06.679 they come to us, and we conduct policy always to 0:19:06.800 --> 0:19:11.040 achieve maximum employment and stable prices. So we just take 0:19:11.080 --> 0:19:15.240 what comes the fact that we have a strong, growing economy, 0:19:15.280 --> 0:19:20.000 a strong growing labor market, and you know, inflation coming down. 0:19:20.119 --> 0:19:22.760 These are the elements that we want to see that 0:19:23.000 --> 0:19:26.600 to achieve the outcome we want. It may take more time, 0:19:26.720 --> 0:19:30.200 but ultimately those that's this is the kind of thing 0:19:30.200 --> 0:19:33.080 you would want to see along the path to getting 0:19:33.080 --> 0:19:35.000 through this without a big increase in unemployment? 0:19:35.160 --> 0:19:38.680 How much effect thus far has the FED had. We 0:19:39.000 --> 0:19:42.120 all have memorized how long and variable legs? How long 0:19:42.119 --> 0:19:44.360 and how variable? And where are you in that process? 0:19:44.600 --> 0:19:46.600