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