Good morning. I'm Brian Curtiz and I'm Doug Krisner. Here are the stories we're following today.
Israeli Prime Minister of Benyamin Netanyahu has ruled out a cease fire and he has refused to resign, which the opposition has been imploring him to do. Let's get to Ed Baxter in San Francisco with all the latest.
Dead Yeah, that's right, Brian. And this with a backdrop of intensified ground operations in Gaza, tanks penetrating deep into Gaza, and Israeli forces raiding a West Bank, exchanging fire with Hezbollah across the Lebanese border. Net Yahoo defiant today at addressing the nation of the media, I.
Want to make clear Israel's position regarding the cease fire. Just as the United States would not agree to a cease fire after the bombing of Pearl Harbor or after the terrorist attack of nine eleven, Israel will not agree to a cessation of ascilities with Kramas after the horrific attacks of October seventh. Calls for a ceasefire are calls for Israel well to surrender to Ramas, to surrender to terrorism, to surrender to barbarism.
That will not happen, and says he will not resign.
The only thing that I intend to have resign is Ramas. We're going to resign them to the dust benef history. That's my goal, that's my responsibility, and that's what I'm leading the country to do.
And then Yahoo says this is a turning point, the decision to fight or surrender to tyranny. House Republicans are taking their own path to aid on Israel. House Republicans introducing a fourteen point three billion dollar aid plan. The package separates Israel aid from a broader Biden emergency funding request that includes Ukraine and Taiwan. Bloomber's Jonathan Tamari says, it's interesting question about separating them and whether aid to Ukraine now will pass.
The Republicans the only want to put up bills that have a majority of Republican support, and that's where the question comes in on Ukraine is that there's been a lot of skepticism amongst some segments of Republicans towards Ukraine aid, and so that bill would get enough support I think from Republicans and Democrats.
Now.
The House bill pays for the Israel aid by cutting the Biden inflation reduction, calling for a fourteen point three billion dollar reduction in funding for the IRS in the US. White House says it is getting reports of arise in anti Semitic incidents. National Security Spokesman John Kirby says the administration has doubled down on its commitment to protect the Jewish community.
It's a deep concern, which is why we as an administration are working so closely with state and local authorities to make sure we can identify any threats and disrupt them before they happen.
Kirby says there's no place for it in America. Saudi forces say they are on high alert after a clash with Houthi rebels. Fort Saudi soldiers died in classes in the Jaizm province on the border with Yemen. The Huthi's also tried to fire a missile over the Kingdom toward Israel. And with a settlement between GM and the UAW today, all of the Big three are getting ready to go back to work full forest and President Joe Biden says a majority of victory for both sides.
These record agreements reward autoworkers who gave up much to keep the industry working and going during the financial crisis more than a decade ago. These agreements ensure the iconic Big Three can still lead the world in quality and innovation.
Biden says, building the economy from the middle out more details on the deal itself coming up very shortly here on Bloomberg Global News twenty four hours a day and whenever you want it with Bloomberg News Now in San Francisco. I'm Ed Baxter in this. He is Bloomberg Brian.
Thanks very much. Doud Crissner and I will take a look at some of the top stories, and Paul Allen will be joining us in a few moments on the show as well well. General Motors says it has reached a tentative agreement with United Auto Workers to end its strike. The strike has run six weeks. We hear the deal includes twenty five percent hourly pay raise plus cost of living allowances over more than four years of the contract.
We spoke earlier with Bloomberg's David Welch, who says there's still more work ahead.
These contracts do. It should takes some time to kind of get ratified and that sort of think, you know, and there will be this sort of almost Buzanteine process where they go about, you know, trying to get everything ratified. And once that process is in place, then the companies can kind of start looking at where they're going to invest to help the ramp things up. And I think that's you know, it's going to be tough for them to do just kind of cranking up EV production and
all this sort of stuff. You know, it just takes a little bit of time to turn the ignition on these things.
That's Bloomberg's David Welch. Separately, UAW officials are now urging all unions in the US to prepare for strikes on May day of twenty twenty eight, that's when the latest proposed contracts with the big three automakers are set to expire.
Trick or treat from Apple, Well, we're about to find out. The tech giant is rolling out some new products the eve of Halloween. Here's Bloomberg Zed Ludlow in.
The event dubbed Scary Fast. We're expecting a big focus on Mac, a new iMac according to Bloomberg's reporting, and an updated version of a high end MacBook Pro. We also expect Apple to debut its latest generation Silicon, the M three chip, its PC processor. Then move forward to Thursday, when we get Apple earnings. The expectation is that overall we see a fourth consecutive quarter of sales decline for Apple.
That is Bloomberg's ed Ludlow. By the way, Apple shares, we're up one percent today and that scary fast event will kick off at eight pm Wall Street time, and of course will be monitoring it for you, Brian Well.
The US Treasury cut its its net borrowing estimate for the current quarter from eight hundred and fifty two to seven hundred and seventy six billion dollars. Now, this offers some relief to investors who are concerned about the rapidly widening fiscal deficit. Treasury officials said, part of the reason for this figure is the magnitude of deferred tax receipts
coming from areas of California and other states. These states have been granted extensions due to natural disasters, and we've been talking for the past a week or so about the refunding announcement on Wednesday. That's when we'll find out how this money is spread across the various tenors of those bonds being sold.
Doug Well. President Biden today signed an executive order on Artificial intelligence. This will establish standards for both security and privacy protections. The order will have obviously brought impacts on companies developing AI tools. They will be required to first safety test new models before releasing them to the public. Here is the President on the order.
One thing is clear. To realize the promise of AI and void the risk, we need to govern this technology not and there's no other way around it. In my view, it must be governed.
That is President Biden.
Now.
He went on to say that he will meet Tuesday with Senamajority Leader Chuck Schumer and lawmakers from both parties at the White House. They will discuss AI and passing legislation on privacy concerns.
Ran We saw a pop in the end dollar yen here one forty nine to six. At the moment. Policymakers at the Bank of Japan are considering letting ten year bond yields top the one percent mark. Bloombergs Johan Wong has more.
The Bank of Japan is said to consider a further tweaking of its yield curve control policy at its meeting today. The Nikai newspaper says the central Bank is likely to allow further flexibility in yield movements. The BOJ is likely to consider allowing ten year JGB yields to rise above one percent by modifying its fixed rate buying operations. The move may prevent the bank from having to buy large amounts of long term debts. The yen strengthened against the
dollar after the report. Ten year swap rates also received a boost. Upper pressure on yields has been stronger than what BOJ Governor Kazuo Oa had expected. In Hong Kong, Join Wang Bloomberg Radio.
Well.
Later today, we'll get China's official readings on the PMI and analyster expecting these data to show a brief lull in China's recovery. You'll have to remember the eight day holiday at the beginning of the month, yes, and that's likely to be behind this anticipated setback. Bloomberg Economics is projecting the official manufacturing PMI to slip to a reading of forty nine to nine. That would be down from fifty point two in September and would be the first
drop that we have seen since May. At the same time, the non manufacturing PMI is expected to ease to a reading a fifty one. That would be down from fifty one to seven seven. By the way, separately, the private Seisheen Manufacturing PMI could move in the other direction, and that's because there is a different seasonal adjustment method used in that calculation.
I'm Brian Curtis along with Paul Allen, and this is Bloomberg day Break Asia. Our guest is Jody Schneider, political news director for Bloomberg Television and Radio. With us to look more closely at the Israel Hamas war. Jody, Israel is definitely facing more pressure to focus on humanitarian considerations, and so that's one thing. Markets have been a little bit buoyant here in the past twenty four hours. Yet at the same time, as you heard from Ed, Israeli
forces have raided a city in the West Bank. They've exchanged fire with Hesbla across the Lebanese border, and also conducted an air strike in Syria. So it seems that we have both restraint and escalation, which seems a little oxymoronic, but I guess that's war.
Yeah, I think that's exactly what we're seeing, Brian. We're seeing both on the US forces at US and Allied forces, telling us that Israel is moving ahead with this next phase, and even as the UN warns that this war is spreading and this humanitarian crisis, Israel is promising more aid even as it steps up those attacks. They're except there.
Ron Durmer, the Strategic Affairs Minister, told us that the aid shipments to Gaza are set to pick up somewhat one hundred trucks a day of aid starting tomorrow or Wednesday, which, of course, at this stage you know, is still a proverbial drop in the bucket, but they said they expect
that and they expect that to continue. Durmer also said that the next several days should see the lowest number of civilian casualties of war, which is an interesting statement to make, though he acknowledged that unanticipated effects may affect the outlook. So this is what Israel has had a lot of criticism for is the civilians, the large number of civilians that have died as they have gone further
into Gaza. And this is something that the US has also been concerned about and has been urging Israel to, you know, think of a different think of different strategies. Uh as it goes into Gaza, given the civilian you know, and the whole humanitarian crisis that is occurring there.
We were hearing from Benjaminet earlier and at Baxter's newscast, and he's pushing back on suggestions that he resign over the security breach that started this whole conflict. How how strong is his position right now? Is he likely to see out this entire conflict?
Yeah, hard to know, Paul. But one of the things that of course provoked these questions was over the weekend the Prime Minister criticized when you know, when when asked, was actually criticized the the army. He criticized it for some of the the or the armed forces there, for some of the intelligence failures, and that that was very you know, that went online and very quickly taken down
and then he apologized. But there's a lot of anger in Israel over how this intelligence failure occurred, sort of, and a lot of it directed toward him and his government, given that he had really been pushing for this judicial the so called judicial reform, and had been focusing on
that rather than military matters. So some found it very ironic that he was then pointing the finger at the military itself, so when this is what provoked these questions today, But he came out and made it very clear he's not resigning, making that statement. The only thing I intend to have resign as Hamas. So it looks like for now he has no intention of doing that. It is a war cabinet he is in right now. They're not doing anything except military related activities, taking up no other matters.
Well, he always does defiance very well, Benjamin Natanyahu. From the US point of view, US forces have been attacked by Iran backed militias, and we had a senior defense official saying was twenty three times since October seventeenth, Yet most of the attacks failed to hit their targets. So is the US approaching this from well, it's terrible that we've been attacked so many times, or it's actually good because these militias are not very good in getting their targets to hit the mart Yeah.
I think it's a little bit of both. Actually, I mean, they're obviously relieved that most of these attacks did fail to hit those targets. But the bigger concern is this escalation of the Israeljamas war. And as we know, last week the US conducted strikes and two facilities in Syria that the administration is concerned are used by groups affiliated with Iranian forces, And of course we've heard from the Syrian side there's concerns, there's concerns about Hesbalah in the north.
So this is a real worry from the US that this could get out of control and out of control pretty quickly.
You mentioned the precision of aid into Gaza or moment ago, we've only got about thirty seconds left. But what about the opportunities for refugees to get out. That's still not really an option, is it not?
Really?
This is really, this is a huge problem. This is what's leaving the UN another and relief for organizations to be very, very concerned because people in Gasa are basically stuck there for the time being.
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