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Speaker 1: Good morning. I'm Brian Curtis.

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Speaker 2: And I'm Paul Allen. Here are the stories we have

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Speaker 2: following today.

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Speaker 1: Well, it looks like a pretty solid day shaping up

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Speaker 1: the ASX with that slow start, not doing too much

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Speaker 1: flat here at the moment, but equity futures are trading

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Speaker 1: higher pretty much right across the region. That after the

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Speaker 1: strong finish on Friday on Wall Street. The dollar is

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Speaker 1: trading mixed after a steep fall on Friday that was

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Speaker 1: prompted by a miss on the US jobs report for October,

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Speaker 1: and we'll get you details on that. In terms of geopolitics,

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Speaker 1: Israel says that its troops have entirely encircled Gaza City.

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Speaker 1: That effectually means that the northern part of Gaza has

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Speaker 1: been cut off from the south. Will get more on

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Speaker 1: that coming up shortly. Anyway, the effect on markets this

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Speaker 1: morning is benign because we see futures tracking up. Hanksing

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Speaker 1: Index futures up one point two percent, China futures up

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Speaker 1: about six tenths of one percent. NICK futures at thirty

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Speaker 1: two thousand, seven hundred and seventy and that would to

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Speaker 1: be suggesting a good six hundred points of upside once

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Speaker 1: the Tokyo market starts to open. You mentioned that the

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Speaker 1: dollar had weakened on Friday. The Bloomberg Dollar Spot index

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Speaker 1: was down eight tenths of one percent. We had yields

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Speaker 1: dropping pretty significantly. The yield on the tenure down to

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Speaker 1: four point five to seven percent. That was a drop

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Speaker 1: of nearly nine basis points that now it's time for

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Speaker 1: global news. US Middle East diplomacy is speeding up today

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Speaker 1: at Baxter has news from the nine to sixty news

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Speaker 1: from at San Francisco.

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Speaker 3: Ed.

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Speaker 4: Yeah, definitely, so, O'Brien, let's go through at Secretary of

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Speaker 4: State Antony Blanket, after visiting Israel, has met with Palestinian

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Speaker 4: President Makmo Dea boss on the West Bank and then

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Speaker 4: travel to bag Dad, Iraq to talk about the future

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Speaker 4: of the region.

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Speaker 5: What we all agree is that in defining that future,

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Speaker 5: in shaping that future for Gaza, for the West Bank,

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Speaker 5: and ultimately for a Palestinian state, Palestinian voices have to

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Speaker 5: be at the.

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Speaker 6: Center of that.

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Speaker 4: And says he's tried to solidify the sentiment that Iran

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Speaker 4: and his proxies not esk laid any efforts toward peace.

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Speaker 5: I made very clear that the attacks the threats coming

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Speaker 5: from militia that are aligned with Iran are totally unacceptable,

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Speaker 5: and we will take every necessary step to protect our people.

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Speaker 4: And Meanwhile, evacuations of foreign passport holders and the injured

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Speaker 4: from the Gaza Strip to Egypt have appeared to stall

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Speaker 4: after more than one thousand people crossed earlier this month.

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Speaker 4: B Lincoln says a pause is being talked about to

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Speaker 4: solve the issue.

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Speaker 5: And Israel's raised important questions about how humanitarian pauses would work.

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Speaker 5: We've got to answer those questions. We're working on exactly that.

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Speaker 5: In fact, we agreed that our teams would get together

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Speaker 5: and they're doing just that.

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Speaker 4: And what about the reports that several hostages have been

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Speaker 4: killed and the Israel air strikes on Gaza, Well, Deputy

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Speaker 4: National Security Advisor John Feiner on ABC has heard on

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Speaker 4: Bloomberg says this has not been confirmed.

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Speaker 7: We are not on the ground. The United States government,

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Speaker 7: the United States military not on the ground in Gaza,

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Speaker 7: so it is very difficult to those claims. We obviously

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Speaker 7: have deep concerns about the safety and well being of

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Speaker 7: Americans and others who are being held there.

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Speaker 4: Meanwhile, US lawmakers have worked over the weekend at a

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Speaker 4: stopgap measure, need to fund the government beyond November seventeenth deadline,

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Speaker 4: and also look at funding for Israel. House Speaker Mike

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Speaker 4: Johnson didn't mention a new timeline and is fighting back

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Speaker 4: against Congressional Budget Office, saying that his taking funds for

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Speaker 4: Israel from the IRS budget will increase the deficit.

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Speaker 8: Only in Washington can you cut funding, add a pay

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Speaker 8: for to a new spending measure and they say that

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Speaker 8: it's terrible for the deficit. Listen, We're trying to take

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Speaker 8: care of our priorities and we will.

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Speaker 3: We know that these other.

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Speaker 8: Important measures are right there on the table and we're

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Speaker 8: working through it hour by hour, day by day.

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Speaker 4: Yeah, Johnson says that we're going to cut the ever

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Speaker 4: ending spiral of debt and deficit. Hong Kong's Chief Executive,

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Speaker 4: John Lee is condemned a bill proposed by US lawmakers

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Speaker 4: to sanction officials, judges, and prosecutors in the city. Bipartisan

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Speaker 4: bid lawmakers in the House and Senate call and President

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Speaker 4: Joe Biden's administration to post sanctions on forty nine people who,

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Speaker 4: it may be said, may be responsible for enforcing Beijing

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Speaker 4: imposed national security law and Ukrainian presidential aid has rebuked

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Speaker 4: the nation's top military commander, offering a downbeat assessment on

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Speaker 4: the counter offensive against Russia. President of Vladimir Zelenski, saying

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Speaker 4: it is going well as for a negotiated settlement.

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Speaker 9: We don't want to make any dialogue with terrorists. And

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Speaker 9: the President of the United States and Congress bipartisans support

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Speaker 9: all these people. They know that I'm not ready to

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Speaker 9: speak with the tororists because the award is nothing.

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Speaker 4: Zelensky on NBC has heard on Bloomberg saying the US

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Speaker 4: understands his position. He will not negotiate global news twenty

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Speaker 4: four hours a day and whenever you want it with

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Speaker 4: Bloomberg News. Now in San Francisco, I'm at Baxter. This

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Speaker 4: is Bloomberg Bryant.

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Speaker 1: And coming up we will be talking more about the

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Speaker 1: Israel Hamas War with Jonathan Pennakoff from the Atlantic Council.

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Speaker 1: Now it's time for the top business stories of the hour.

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Speaker 1: Billionaire Warren Buffett's Berkshire Hathaway is now sitting on a

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Speaker 1: record pile of cash. We get that story from Bloomberg's

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Speaker 1: Denise Pellegreeney.

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Speaker 10: One hundred and fifty seven point two billion dollars in

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Speaker 10: the third quarter. That's thanks to higher interest rates and

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Speaker 10: also limited meaningful deals where Buffett could otherwise put his

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Speaker 10: money to work. The conglomerate actually trimmed its overall equities

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Speaker 10: portfolio in the quarter, and Berkshire also reporting operating earnings

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Speaker 10: of ten point seven to six billion dollars, a jump

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Speaker 10: on the previous year thanks to elevated interest rates I

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Speaker 10: mentioned on the cash pile, and also gains at its

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Speaker 10: insurance business. Overall, Berkshire posted a loss for the quarter

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Speaker 10: wider than the year prior, primarily due to losses on

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Speaker 10: its equities portfolio. The firm also spent one point one

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Speaker 10: billion dollars on Buybecks in the period, and that brings

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Speaker 10: the total for the first nine months of the year

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Speaker 10: on buybeckx to about seven billion dollars. Denise pellgreny Bloomberg Radio.

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Speaker 2: Friday's employment report on the US show to draw growth

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Speaker 2: moderate or moderate more than expected. Last month, the October

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Speaker 2: non farm payrolls report showed to gain one hundred and

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Speaker 2: fifty thousand jobs. The unemployment rate is also rosatech to

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Speaker 2: three point nine percent, and monthly wage growth slowed. Atlanta

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Speaker 2: Fed President Rafael Bostic says policymakers now have time to

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Speaker 2: watch how the US economy is evolving, and he thinks

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Speaker 2: they can be patient when it comes to interest rate

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Speaker 2: moves today.

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Speaker 11: My outlook is that we're going to stay on that

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Speaker 11: slow and steady and if we continue to do that,

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Speaker 11: then I think where we are now will be sufficiently

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Speaker 11: restrictive to get us to the two percent level for inflation.

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Speaker 11: But there's still a lot that's going to happen between

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Speaker 11: now and even the next meeting.

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Speaker 2: In Bostic also said he thinks officials can get inflation

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Speaker 2: to levels that are close to the Fed's target without

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Speaker 2: seeing a recession.

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Speaker 1: Brian Well Wall Street is looking at another busy week

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Speaker 1: a head for earnings. Let's get the story from Bloomberg's

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Speaker 1: Charlie Pellett.

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Speaker 3: Just over four hundred members of the S and P

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Speaker 3: five hundred index have reported so far, and many US

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Speaker 3: companies have been putting on a better than an expected

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Speaker 3: show for their third quarter results, boosting investor confidence. Naddie

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Speaker 3: Lovell is, senior US equity strategistic UBS Financial Services.

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Speaker 12: The early season is coming in better than expected, and

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Speaker 12: so we think that the outlaw continues to improve among.

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Speaker 3: Some of the names reporting this week the Walt Disney Company, Armholdings, Biogen,

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Speaker 3: Devon Energy, d R, Horton, Ubs, and Uber. In New York,

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Speaker 3: Charlie Pellett Bloomberg Radio.

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Speaker 2: We go to China next, and Australian Prime Minister Anthony

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Speaker 2: Alberenzi is in Shanghai hoping to improve ties between China

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Speaker 2: and Australia and there is some optimism on that front.

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Speaker 2: Albenizi says China will remain Australia's largest trading partner for

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Speaker 2: the foreseeable future.

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Speaker 1: We want to see any impediments which are there.

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Speaker 13: For our trade to be removed and dealt with.

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Speaker 2: He's pleased by China's recent decisions on Australia and Bali

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Speaker 2: and Hay, and that both countries are on the p

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Speaker 2: to restore wine trade, and he thinks foreign investment from

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Speaker 2: China will continue to contribute to Australia's growth and the

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Speaker 2: creation of jobs, but there is more work to do Brian.

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Speaker 1: Meantime, Chinese Premier Lee Chiang is vowing to boost imports

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Speaker 1: and expand market access in China. Let's get the story

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Speaker 1: from Bloomberg's Rashad Solomon.

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Speaker 14: Premier Lee pledged to protect the rights and interests of

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Speaker 14: foreign investors, telling the China International Import Expo, Beijing would

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Speaker 14: continue to promote opening up with greater inclusivity. The comments

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Speaker 14: coming is foreign investment into China TOURN negative for the

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Speaker 14: first time since records began in nineteen ninety eight. The

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Speaker 14: country has been seeking to lure foreign investors back in

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Speaker 14: an effort to aid its economic recovery. Meantime, finance mins

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Speaker 14: Land for And said China would speed up the issues

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Speaker 14: of additional government bonds to ensure what he called an

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Speaker 14: intensity of spending. I'm Richard Seal at Bloomberg Radio.

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Speaker 2: I fond as Samble of fox Con saw sales decline

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Speaker 2: in October to try to launch the probe into the company.

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Speaker 2: Bloomberg's Joe and Wong has more.

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Speaker 12: The big iPhone maker reported a four point six percent

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Speaker 12: decline in October revenue to the equivalent of twenty three

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Speaker 12: billion dollars. Still, the company is sticking with what it

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Speaker 12: calls a significant growth outlook for the December quarter that's

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Speaker 12: typically as busy as period given.

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Speaker 13: Year end iPhone shipments.

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Speaker 12: This comes as Foxcom find itself in the crosshairs of

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Speaker 12: tax audits and a land use review by Chinese authorities.

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Speaker 13: The investigation complicates.

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Speaker 12: Apple's position, and its biggest international market investors are also

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Speaker 12: growing more skittish about the iPhone's prospects in China. A

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Speaker 12: new smartphone from Huawei has only added to that skittishness.

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Speaker 13: In Hong Kong, joined Wang Bloomberg Radio.

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Speaker 1: This is Bloomberg Daybreak Asia. I'm Brian Curtis along with

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Speaker 1: Paul Allen, and our guest is Jonathan Pennacoff, director of

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Speaker 1: Scocroft Middle East Security Initiative at the Atlantic Council. Jonathan,

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Speaker 1: thanks very much for joining us. So Israeli troops encircling

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Speaker 1: Gaza City. We can talk a little bit about that.

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Speaker 1: The Secretary of Saint Anthony Blincoln pretty aggressively traveling through

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Speaker 1: the Middle East, and not least of which meeting with

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Speaker 1: President Makmunabas in the West Bank. But I wanted to

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Speaker 1: ask you about Israel suspending its Heritage minister from cabinet

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Speaker 1: meetings after he made the comments about the possibility of

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Speaker 1: using an atomic bomb in the conflict. Now, even with

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Speaker 1: that suspension, does that ratchet up the risk that we're

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Speaker 1: facing with that conflict?

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Speaker 6: Well, and thanks for being with me. Good morning for

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Speaker 6: those listly in Asia. Look, obviously it was completely uncalled for,

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Speaker 6: you see, wise for condemnation as there should be, not

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Speaker 6: only from Israeli allies and including United Arab Emirus, but

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Speaker 6: from Israel itself. Promison then Yahoo threatened to push them

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Speaker 6: completely out of the cabinet. Amhi Eliahu is the minister's name.

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Speaker 6: The reality is what he doesn't speak for the government,

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Speaker 6: but he is part of the far right, the far

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Speaker 6: right that has been very protective of the subtle movement

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Speaker 6: in the West Bank, a far right that includes spokes

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Speaker 6: like Besilosmotrich, and I think the concern is that it'll

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Speaker 6: ratchet up tensions. Frankly, not so much even in Gaza,

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Speaker 6: but in places like the West Bank, where there's already

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Speaker 6: been an increase in tension and hostilities. And if you

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Speaker 6: see a real outcoming of violence from the West Bank,

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Speaker 6: then it opens yet another front that Israel is going

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Speaker 6: to have to deal with at a time that in

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Speaker 6: Israel as well as of course the US is desperately

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Speaker 6: trying to keep this conflict isolated to just Gaza.

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Speaker 2: Yeah, the intention here really to prevent escalation. But you

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Speaker 2: mentioned the West Bank, but we've also had Israel firing

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Speaker 2: on Hezbela targets in the north near the border with Lebanon.

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Speaker 2: What's the significance of that.

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Speaker 6: Yeah. Absolutely, Look, so this has gone back and forth

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Speaker 6: now for quite a while. Towards since the beginning of

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Speaker 6: the conflict. There have been deaths from Israel Defense Forces soldiers,

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Speaker 6: there have been deaths of his Balla members, and there

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Speaker 6: have been deaths of civilians in the door. It's not

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Speaker 6: getting the attention because it seems like all sides you're

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Speaker 6: desperately trying to keep it at a level below escalating

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Speaker 6: it to what we see as a full scale conflict.

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Speaker 6: But of course that's an incredibly risky strategy. The chances

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Speaker 6: for unintended escalation that somebody responds too much or too

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Speaker 6: far then had been anticipated, could quickly escalate this into

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Speaker 6: a full scale conflict. Not that different than what we

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Speaker 6: saw in the two thousand and six Hezballah isra war.

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Speaker 6: You heard Nosrala, the Hibala leader, on Friday, give a

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Speaker 6: public speech. I think he clearly had the same message

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Speaker 6: that they are defending Kamas, they are defending the ideology,

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Speaker 6: and they are the vanguard against Israel. But trying to

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Speaker 6: prevent it from actually escalating further. We're gonna have to

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Speaker 6: wait and see it. It's a risky strategy all.

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Speaker 13: Around, Johnathan.

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Speaker 1: With Israeli troops encircling Gaza City, what's this strategy behind that?

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Speaker 6: Yeah, so really what it is is it's about trying

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Speaker 6: to cut off and deal with Gaza in portship so

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Speaker 6: that you're not trying to deal with all of Gaza

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Speaker 6: all at once. So what you're seeing is you see

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Speaker 6: now for weeks, is you're trying to convince people to

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Speaker 6: move from the north to the south of the Gaza Strip.

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Speaker 6: Hundreds of thousands have listened. The hundreds of thousands haven't

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Speaker 6: and are very very scared for understandable reasons. There's a

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Speaker 6: history of Houstonians feel like they're being displaced. But for Israel,

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Speaker 6: it's a bit of a kipch twenty two because if

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Speaker 6: they didn't warn people as they try now to start

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Speaker 6: an operation more meaningfully, then you'd see even more civilian

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Speaker 6: deaths than we have. What Israel is hoping to ultimately

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Speaker 6: do is probably undertake what I would say are more

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Speaker 6: precision type strikes now. I think originally, when fort Wise

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Speaker 6: the conflict was starting, there's a concern that Israel would

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Speaker 6: just go kind of full scale from north to south.

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Speaker 6: I think it has taken some US advice and is

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Speaker 6: now trying for a bit more precision.

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Speaker 1: I see that please is baked into the strategy, the

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Speaker 1: belief that the Palestinian leadership is somehow concentrated in the

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Speaker 1: Gaza city and that if they're able to neutralize Hamas there,

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Speaker 1: that they could almost then not have to continue with

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Speaker 1: the ground push into the south.

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Speaker 6: I think that's true part of it, but I think

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Speaker 6: it's hard to tell. The Hamas leadership has a history

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Speaker 6: of using underground tunnels, of using flanks of the ambulatory vehicles,

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Speaker 6: of using any means to move around and try to

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Speaker 6: get the protection. I don't obviously know. I think nobody

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Speaker 6: doesn't use always not going to disclose it what the

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Speaker 6: intelligence is actually showing them. I think that what is

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Speaker 6: probably true is that they know that a large amount

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Speaker 6: of the weapons cachet is a large amount of the

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Speaker 6: command and control censors of Kamas, A large amount of

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Speaker 6: the infrastructure that the terror cell is built up over

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Speaker 6: the years is concentrated in Gaza City, and so this

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Speaker 6: is I think a first step, if it's also a

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Speaker 6: last one, then all the better for everyone. But I

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Speaker 6: wouldn't want to say that we're there yet.

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Speaker 2: It's one thing, of course, to encircle Gaza City, but

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Speaker 2: as we know, there was an impressive network of tunnels

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Speaker 2: underneath of the city. What's being done to nullify the

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Speaker 2: impact of that.

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Speaker 6: Yeah, that's absolutely right, and I think look, this is

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Speaker 6: the siege toward Gaza City is all part of this, right.

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Speaker 6: I think you will see the IDF work to collapse

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Speaker 6: a number of those tunnels, but to do so in

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Speaker 6: ways that actually call for smalling munitions to try to

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Speaker 6: limit the civilian casualties and the impact of even destruction. Obviously,

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Speaker 6: those tunnel networks are vast and having the intel is

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Speaker 6: critically important. The one challenge really is though it's not

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Speaker 6: quite clear where all the hostages are. Obviously, I know

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Speaker 6: that's something the US and Israel are working on. Hamas

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Speaker 6: is a history of not only its leaders hiding the tunnels,

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Speaker 6: but using hostages to hiden the tunnels to try and

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Speaker 6: because it's is well not to go that direction.

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