Speaker 1: Good morning.
Speaker 2: I'm Brian Curtiz and I'm Doug Krisner. Here are the
Speaker 2: stories we're following today. We had the retreat in US
Speaker 2: talks in the Friday session. I think it's fair to
Speaker 2: say geopolitical risk is a primary driver, even though we're
Speaker 2: in the throes of earning season. In the Friday session,
Speaker 2: we had the S and P down over one point
Speaker 2: two percent. We broke below that two hundred day moving average.
Speaker 2: Then if you look at the bond market, yields were
Speaker 2: down across the treasury curve, and much of that was
Speaker 2: tied to haven buying. Also on Friday, we had one
Speaker 2: of the Fed's more hawkish members, Cleveland's Loretta Mester, saying
Speaker 2: the FED is close to wrapping up its tightening campaign.
Speaker 2: Then we had crude oil prices dipping just a bit
Speaker 2: here in New York on Friday, although for the five
Speaker 2: trading days of last week, WTI is up about two
Speaker 2: point three percent. Short while ago, we had the yen
Speaker 2: briefly weakening beyond one point fifty against the greenback. That
Speaker 2: in early Asian trading right now on nine eighty five,
Speaker 2: and this is keeping the market on high alert for
Speaker 2: possible intervention. From Japan's Ministry of Finance. Over the weekend,
Speaker 2: the nie KI reported the Bank of Japan may review
Speaker 2: its yield curve control program at this month's policy meeting.
Speaker 2: And we have market holidays today in Hong Kong, New
Speaker 2: Zealand and in Thailand. And we'll take another look at
Speaker 2: market action for you in about fifteen minutes.
Speaker 1: Brian, all right, Doug, thanks very much. Now it's time
Speaker 1: for global news. The US is sending additional forces to
Speaker 1: the Middle East. I mean it fears that the war
Speaker 1: could spread at Baxter has that story and the rest
Speaker 1: of the news from the nine to sixty newsroom.
Speaker 3: Ed, Yeah, thank you, Brian, You're right. US s Eisenhower
Speaker 3: Carrier Strike Group as well as additional air defense. Defense
Speaker 3: Secretary Lloyd Austin on ABC has heard here on Bloomberg
Speaker 3: says the terrence is the best course at this point.
Speaker 4: What we're seeing is the prospect of a significant escalation
Speaker 4: of attacks on our troops and our people throughout the region.
Speaker 3: Austin says the US will defend its people, end bases,
Speaker 3: and US Secretary of State Anthony Blinket on CBS has
Speaker 3: heard here on Bloomberg says it is talking to Israel
Speaker 3: about ground operations, but that Israel has the right and
Speaker 3: obligation to defend itself.
Speaker 5: Not only what they do, but how they do it,
Speaker 5: particularly when it comes to making sure the civilians are
Speaker 5: as protected as they possibly can be in this crossfire
Speaker 5: of Hamas is making. But in terms of what we're
Speaker 5: talking Israel about in there with regard to their military operations,
Speaker 5: it really is focused on both how they do it
Speaker 5: and how best to achieve the results that they seek.
Speaker 3: He says Hamas is using civilians as shield still and
Speaker 3: is refusing to let them leave the war zones. More
Speaker 3: trucks meanwhile, carrying eight in the guys, have been able
Speaker 3: to make it through checkpoints, but the United Nations World
Speaker 3: Food Bank Program Director Cindy McCain and Aman Jordan says
Speaker 3: this won't work long term.
Speaker 6: We were able to get seventeen more trucks in just now,
Speaker 6: actually just a little while ago, I understand, and there's
Speaker 6: a forty more tomorrow, but this dribbling system is not
Speaker 6: going to work.
Speaker 3: McCain on ABC has heard on Bloomberg says the situation
Speaker 3: of the Gaza strip is dire and it is horrendous.
Speaker 3: So US Senator Lindsey Graham is in Tel Aviv with
Speaker 3: a delegation of legislators and he lays out what he
Speaker 3: feels victory looks like in the region.
Speaker 7: What is winning for the terrorist organization to be destroyed,
Speaker 7: for the people of Israel to have a sense of
Speaker 7: peace they've lost, for the Palestinian people to have hope
Speaker 7: they don't have, and for the Arabs and the Israelis
Speaker 7: to end a conflict that would make the.
Speaker 3: World better as well. Today, Israel, says, has belies dragging
Speaker 3: Lebanon toward war as towns empty there and the US
Speaker 3: has ordered non emergency staff to leave Iraq. Former House
Speaker 3: Speaker Kevin McCarthy says what is going on in the
Speaker 3: House is an embarrassment to the Republican Party, to US
Speaker 3: government as a whole. On NBC has heard on Bloomberg,
Speaker 3: he says that he has endorsed Tom Emmer.
Speaker 8: We need someone who understands how to do this job.
Speaker 8: I believe Tom Emmer our whip. He's been in the
Speaker 8: room with all of our successes, from our bills to
Speaker 8: secure the border, from Parents' Bill of Rights, from cutting
Speaker 8: two trillion dollars, getting work requirements. He knows how to
Speaker 8: do the job across the street at the same time
Speaker 8: helping us win the majority. He sets himself head and
Speaker 8: shoulders above all those others who want to run.
Speaker 3: Also blames Democrats for now reaching across the island trying
Speaker 3: to solve the problems India says it's cut Canada's diplomatic
Speaker 3: presence in the country do the continuing concerns about interference
Speaker 3: and its affairs. This as ties continue to deteriorate. Global
Speaker 3: news twenty four hours a day and whenever you want
Speaker 3: it with Bloomberg News Now in San Francisco. I'm Ed Baxter.
Speaker 1: This is Bloomberg Brian, and thanks very much. Let's get
Speaker 1: to some of the top stories in the business front. Now.
Speaker 1: Markets this week are bracing for some key economic data
Speaker 1: out in the United States. Eight will be getting GDP
Speaker 1: for instance, on Thursday, Economy is surveyed by Bloomberg say
Speaker 1: the US economy probably expanded at the quickest pace in
Speaker 1: nearly two years in the third quarter, and that presents
Speaker 1: a challenge for Fed officials who are debating whether additional
Speaker 1: tightening is needed. Now we heard from Bloomberg opinion columnists
Speaker 1: Mohammed el Arian. He says the Fed needs to establish
Speaker 1: a longer term vision for where interest rates are heading.
Speaker 9: I think they need to pivot from excessive data dependence
Speaker 9: to data dependence that has a greater forward looking component.
Speaker 9: So we are going to remain in the situation of
Speaker 9: great uncertainty because there is no vision as to where
Speaker 9: this economy is going.
Speaker 1: That's Mohammed el Arians. Separately, we'll be getting the PCE
Speaker 1: deflator data on Friday, and that will also be closely
Speaker 1: monitored by the Federal Reserve.
Speaker 2: Well nearly a third of the companies within the S
Speaker 2: and P five hundred will be reporting earnings this week,
Speaker 2: and this list includes Meta, Amazon, On, and the US automakers.
Speaker 2: We have a preview from Bloomberg's Denise Pellegrini.
Speaker 10: Profit margins will be scrutinized as investors assess how businesses
Speaker 10: are coping with rising wages, fuel prices, and other costs.
Speaker 10: Ford and General Motors still in talks with striking workers,
Speaker 10: along with UPS and Chipotle, may discuss how they're dealing
Speaker 10: with the challenges, and investors hungry for info related to
Speaker 10: artificial intelligence may be able to learn more about the
Speaker 10: cost of the emerging technology. When Microsoft, Alphabet and Meta
Speaker 10: opened their books and cost savings could be in focus
Speaker 10: for Amazon after making an effort to reel things in.
Speaker 10: According to analysts Aitcown, Denise Pellegriny Bloomberg Radio.
Speaker 1: Americans are falling behind on car payments at the highest
Speaker 1: rate on record. More on that from Bloombergy's Leslie Latto.
Speaker 11: It's getting harder and harder to pay our bills, with
Speaker 11: auto loans up high on our list of challenges. Pitch
Speaker 11: Ratings reports the percentage of sub prime car borrowers behind
Speaker 11: at least sixty days was up well over six percent
Speaker 11: in September, the highest it's been since nineteen ninety four.
Speaker 11: Interest rate hikes are making newer loans more expensive, which
Speaker 11: has millions of car owners struggling to afford their payments.
Speaker 11: A clear indication of distress at a time when the
Speaker 11: economy is sending mixed signals, especially about the health of
Speaker 11: consumer spending. Leslie Lado, Bloomberg Radio.
Speaker 2: Well, the iPhone assembler Hanhai Precision says it will collaborate
Speaker 2: with Chinese authorities on unspecified investigations. We have the story
Speaker 2: from Bloomberg's Chuan Wog in Hong Kong.
Speaker 12: The statement follows a report that Chinese tax authorities are
Speaker 12: conducting checks on Fox Kong units in Guangzhou and Jiangsu.
Speaker 12: The Chinese media newspaper Global Times said authorities are also
Speaker 12: reviewing land use by parent Fox Khon and Hunan and Hubei.
Speaker 12: The latest probe comes after Foxcom founded Terry Go resigned
Speaker 12: from the company sport. He's running for president in Taiwan,
Speaker 12: and in his presidential bid he said who would not
Speaker 12: vow to any Chinese threats in Hong Kong. Juan Wong
Speaker 12: Blue Radio.
Speaker 1: Australia will suspend its case at the World Trade Organization
Speaker 1: over China's tariffs on Australian wine imports. We get that
Speaker 1: story from Bloomberg's Paul Allen.
Speaker 13: China will undertake a review of its tariffs on Australian
Speaker 13: wine and that's expected to take five months. During that period,
Speaker 13: Australia has announced it will suspend its wto dispute over
Speaker 13: China's actions. This is according to a press release from
Speaker 13: the office of Prime Minister Anthony Albanesi, and this comes
Speaker 13: ahead of a visit by Albanzi II China from November
Speaker 13: fourth through to the seventh. It's the first by an
Speaker 13: Australian leader since twenty sixteen. At another sign of warming
Speaker 13: relations between the two governments. Earlier this month, China released
Speaker 13: Australian journalist Chung Lei from about three years of detention
Speaker 13: for allegedly passing national secrets to an overseas institution. I'm
Speaker 13: Paul Allen Bloomberg Radio.
Speaker 1: Paul mentioned Albanizi's trip to China coming up the first
Speaker 1: week in November. He'll also be touching down in Washington,
Speaker 1: d C. Tomorrow where he will meet with President Biden Albanez.
Speaker 1: He said the four day visit to the US will
Speaker 1: focus on building an alliance for the future. Well, I'm
Speaker 1: Brian Curtis along with Vonnie Quinn. This is Bloomberg Daybreak
Speaker 1: Asia and we welcome to the airways now our guest
Speaker 1: Tony Chuchka, who is Bloomberg Weekend Editor in Washington. So Tony,
Speaker 1: great to have you on the program. The diplomatic efforts
Speaker 1: with Israel, you know, especially on hopes of getting the
Speaker 1: hostages out, along with the aid getting in to Gaza
Speaker 1: from Egypt, are seemingly delaying this ground defensive that Israel
Speaker 1: has promised. I'm curious what you're hearing from people. Does
Speaker 1: this continue for a while, or are you getting some
Speaker 1: sense that Israel is getting itching to conduct its action?
Speaker 14: Well, yeah, hi Bright, I mean for the short answer,
Speaker 14: of course, is that nobody is saying public when Israel
Speaker 14: might move. There was immediately after the attack by hamas
Speaker 14: uh It's incursion into Israel and killings of civilians, I mean,
Speaker 14: there was about two weeks ago. There was an immediate
Speaker 14: there was a sense that Israel would have to strike
Speaker 14: fast and hard. I think, uh, And that's that has
Speaker 14: not come to pass. So the latest our latest reporting
Speaker 14: from the region is that that Israel supports the diplomatic
Speaker 14: efforts are underway, which critically include the us UH in
Speaker 14: one sense and then the Qatars mediators, and that that
Speaker 14: that the that the goal of this is to release
Speaker 14: as we're reporting, a large number of hostages quickly. Now
Speaker 14: that's that's that's quite a task if you consider that
Speaker 14: there's dozens or maybe up to two hundred of them.
Speaker 1: Well, it's controversial too, isn't it, to the extent that
Speaker 1: if you do a deal then you get more hostages.
Speaker 14: That's always risk with any of those hostage situations. There's
Speaker 14: sort of the court of public opinion to consider as well.
Speaker 14: For Israel. There's been a lot of sort of chatter
Speaker 14: and talk about the longer this goes on, with Israel
Speaker 14: targeting Gaza, you know, with the bombing that that sort
Speaker 14: of turns public opinion against that. The risk is of
Speaker 14: public opinion turning against Israel globally and also in the
Speaker 14: Arab world. So there's a lot of fact factors to
Speaker 14: consider here, and for the moment, at least, Israel with
Speaker 14: some prodding from the US, as you can tell from
Speaker 14: public not really statements, but certainly hints for people like
Speaker 14: Secretary of State Anthony Blincoln, that Israel is not quite
Speaker 14: ready to move yet.
Speaker 15: Yeah, Tony, we have some reporting to the effect that
Speaker 15: Israeli citizens are a little nonplussed with how much the
Speaker 15: US is asking for in terms of hostage negotiations and
Speaker 15: so on. How much can the US ask for?
Speaker 11: How much for Israel grant.
Speaker 14: The US keeps saying, or the Biden administration keeps saying,
Speaker 14: that they're not dictating to Israel. I think that's point one.
Speaker 14: On the other hand, we all know that the alliance
Speaker 14: is historic and very tight, and there's also a lot
Speaker 14: of political pressure, if you like, in Washington, from Congress
Speaker 14: and outside Congress to support Israel. I mean, especially after
Speaker 14: you know the brutality of Maas attack, which is what
Speaker 14: started all of this, or at least the latest round.
Speaker 14: And so so what Blincoln said on the on some
Speaker 14: of the the Sunday morning political shows was that the
Speaker 14: US that the military advice at the US is giving
Speaker 14: to Israel is focused on how they do it and
Speaker 14: how best to achieve the results that they seek, they
Speaker 14: being Israel. So you can read between the lines there,
Speaker 14: I think.
Speaker 1: So the ground defense of itself is one major concern
Speaker 1: about loss of life and civilians and even the loss
Speaker 1: of life of soldiers. And then there's also the notion
Speaker 1: of this spreading into a wider war. Now Israel warned
Speaker 1: that hesb Law is risking dragging Lebanon into the war.
Speaker 1: Who did they issue that warning too? In other words,
Speaker 1: it's a kind of normally when we talk about warning,
Speaker 1: you warn someone, but they're just actually warning I suppose
Speaker 1: the world that this is what's happening.
Speaker 14: Yeah, and Iran, which stands behind those groups Hamas, Asbol
Speaker 14: and others. So the way that's playing out is that
Speaker 14: the US in this case, again Anthony blink In, the
Speaker 14: Secretary of State said that if there was any any
Speaker 14: of these Iranian back groups were to attack American forces,
Speaker 14: there would be a decisive response. Now that's what you'd expect.
Speaker 14: The US can continence that it's moved a lot of
Speaker 14: very heavy military hardware into the Mediterranean and elsewhere in
Speaker 14: the region. So that's that's that's what we're talking about here,
Speaker 14: We're talking about Iran, and you know, the ultimate specter
Speaker 14: of course, of Iran possibly getting evolved directly, you know,
Speaker 14: and there's been a lot of talk about that being
Speaker 14: very fairly or quite remote possibility. However, it's something you
Speaker 14: have to take into account. And mot Bilking also said,
Speaker 14: is no one wants a second or third front to open? Well,
Speaker 14: what does that mean? You know, no one presumably also
Speaker 14: includes the United States, which would then also mean I
Speaker 14: think if you read that, read between the lines on
Speaker 14: that that also means some restraint on Israel in terms
Speaker 14: of Iran, presum will be to.
Speaker 15: Only in the coming days we are going to see
Speaker 15: the IDEF go into Gaza on the ground. Is that
Speaker 15: enough to provoke another nation to get involved or another
Speaker 15: military group?
Speaker 14: That's anybody's guess. I don't know, you know, I don't
Speaker 14: know what the planning. Clearly there's scenarios that are being
Speaker 14: mapped out, and that has to be part of it.
Speaker 14: And I think that's why all of this talk about
Speaker 14: Iran is quite prominent now in the public commentary. But
Speaker 14: you know, Israel's goal is stated goal is to destroy
Speaker 14: Hamas and remove that threat, so that in theory at
Speaker 14: least it could be a relatively limited operation, the sense
Speaker 14: of limited strategic goal.
Speaker 1: This is Bloomberg Daybreak Asia, your morning brief on the
Speaker 1: stories making news from Hong Kong to Singapore and Wall Street.
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Speaker 2: And I'm Doug Prisoner. Join us again tomorrow for all
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Speaker 2: on Bloomberg day Break Asia