Good morning.
I'm Brian Curtis and I'm Doug Prisner. Here are the stories we're following today.
We'll be getting more on the US House speakership maneuverings and also the Israel Hamas war all throughout the program.
Now it's time for Global News.
US House of Representatives will not be voting on a speaker today, as some had hoped would be the case. At Baxter is covering this story as well as the latest on Israel and the Gaza strip head.
Yes, some would hope, but not really expected. Brian. The House's closed session, although the negotiations go on behind closed doors. Steve Scalise has been nominated by the caucus as a whole, and Jim Jordan says he supports that, but Bloomberg's Laura Davison says, there is a long way to go.
This is really a replay of what we saw happen in January. The Republicans coming out of various meetings today so that there are about twenty people who are not behind Scalise. If you'll remember, that was basically where vote number one started with McCarthy. You hit about twenty people voting against him on the Republican side. This is where all the negotiations happen, and a lot of Republicans going into the said, look, we want to learn from our
mistakes from last time. We don't want to have these fights in public. We want to change the rules to prevent any one person being able to oust a speaker at any time. None of that has happened.
Yeah, but that's not happened. Right, there's a group of twenty holding things up now. Meanwhile, Scalise says there's a lot of work to be done.
The conversations we've been having with my colleagues over the last few days leading up to this show that there's a result that we need to get back to work. There's a lot of business to take.
Care of and focus on the Middle East.
Our first resolution that we pass under Speaker Steve Scalise will be to make it clear that we stand with Israel. The McCall meeks resolution will be our first order of business.
Yeah, but again, nobody knows how long that's going to take. Israel meanwhile, forming an emergency coalition government today bloomber' skalaid Allstein in Tel Aviv.
This is in fact a new party. Benny Ganz's party just joined the forces with Nan Nathaniel's government's former government to days in effect. But what we're seeing now is Gans's party join in basically to form a very narrow war managing cabinet. They will be leading any operations the war. You can say that we'll be moving on from moving forward from now on.
Yeah. Galate saying life is not normal at all in Israel, that many people have just hunkered down, not going to work, kids not going to school. Also where today that Israeli bombing on the Gaza has knocked out most power to the strip. US President Joe Biden stopped to talk with a group of Jewish leaders in Washington, d C.
Today, I would argue, said deadliest day for Jews since the Holocaust.
And he says silence his complicity, he will not. He says, be silence.
This attack was a campaign of pure cruelty. I just hate cruelty against the Jewish people.
And says without Israel, Jewish people everywhere are in danger, says the US and Israel doing everything possible to get the US hostages home. The President says a second carrier group is headed to the eastern Mediterranean and has a warning for Iran when we moved.
The US carrier fleet to the Eastern Mediterranean and are sending more fighter chitch there in that region, and made it clear, made it clear to the Iranians be careful.
At one point, Biden pounded the podium, saying the globe cannot allow this kind of action to go on Global News powered by more than twenty seven hundred journalists and analysts in over one hundred twenty countries in San Francisco, I'm at Baxter in This is Bloomberg.
Now onto some of our other top stories of the day. Minutes from the FED September meetings show that policymakers agreed last month that monetary policy should remain restrictive for some time. They also noted that the risks of overtightening had to be balanced against the idea of keeping inflation on a downward path toward two percent. Markets are now eyeing tomorrow's inflation report for clues on the Fed's.
Rate hiking path. Bloomberg's Michael McKee with a preview.
Wednesday's unexpected rise in the September producer price index hasn't changed forecasts for consumer prices. Analysts still see the index up at only half the pace of August, as gasoline prices remained relatively steady during the month even as oil prices rose, and while goods prices rose faster than services.
In the PPI, investors and FED officials will focus on CPI services services minus housing costs have contributed much of the inflation pressure over the past year, and the expectation is that should continue to ease over the past two weeks. A number of policymakers have suggested they're inclined not to raise rates November first, and expected CPI could ratify that, while at upside surprise may push market rates up in
a expectation those FED officials will change their minds. Michael McKee Bloomberg Radio.
Onto the trial of Sam Bankman Free today. His former business partner and former girlfriend, Caroline Ellison, was on the stand for a second day. She told the jury Bankment Freed directed her to orchestrate a massive fraud at FTX and its related hedge fund Alimeter Research. Tomorrow, that is Thursday here in New York. Ellison will be cross examined by Bankman Freed's lawyers. Bloomberg's Angela Moon tells us how the defense will try to refute Ellison's testimony.
Basically, their strategy has all been all along that Sam Bankmint Freed was unable to if he committed crime. He wasn't able to do this alone, right, He had his inner circle, He had advisers who were advising him, and they specifically mentioned that she was put in this role so that she could hedge the customer's money, so that when things got bad, that she was basically the one that he was going to really rely on to get
them out of trouble. They're going to be very vocal about the fact that she did not do her job well. And part of the reason why the SPF empire fell was because they had an incompetent CEO, that is.
Bloomberg's Angela Moon. Now Bankman Freed has admitted he did make several mistakes, but he has denied intentionally defrauding anyone.
Bran Well onto some corporate news. Shares of German footwear maker Birkenstock dropped twelve point six percent today in its debut and more from Bloomberg's Charlie Pellett.
According to data compiled by Bloomberg, the German sandal maker's debut was the worst opening for a listing of one billion dollars or more in New York in over two years. The data show, out of more than three hundred usipos of that size in the past century, only nine have fared worse, the last being app Love and Corp, which opened twelve and a half percent below its IPO price in April of twenty twenty one in New York. Charlie Pellet Bloomberg Radio.
The head of the French Central Bank, says that China must play by global rules if it wants to get more sway at the IMF. Here is Bloomberg's von Man from Hong Kong.
Central Bank Chief Francois Villoi de Galjo said a revision of the voting shares including China, will be inevitable, but he said those countries must play by the rules. Villoy also said a future shakeup at the IMF could be an opportunity to create European groupings behind board seats. It can also change majority voting rules to soften the veto power of some countries. Vilori's comments are in contrast with
a position taken by the US. The US has been calling for an equiproportional increase of quotas that would boost contributions to the fund without reallocating voting shares in Hong Kong, i'm Von Mann Bloomberg Radio.
Separately, US Treasury Secretary Janet Yellen is planning to meet this week with China's Central Bank governor Penggong Sheen. That will happen in Morocco, and she is hoping to make some progress on the debt relief talks that include China.
And perhaps bearing out what Yvon was just reporting on Doug China has reached a tentative debt agreement with Sri Lanka, ruffling feathers at the IMF.
Bloomberg's Bonnie al with that story from Hong Kong.
The IMF was caught off guard by China front running IMF negotiations with Sri Lanka by striking this deal. The IMF and various Paris Club members had been expected to hold talks on a deal this week. China's Foreign Ministry said the deal between the Export Import Bank of China and Sri Lanka was reached late last month, but it only emerged this week as a result. SOSA say an announcement on the IMF Paris Club deal now looks unlikely. In Hong Kong, I'm Bonnie Al Bloomberg Radio and.
Joining us now to discuss the latest on the House Speakership vote is Joe Matthew, host of Bloomberg Sound On, and So I guess there were a few surprising moves today.
What caught you most off guard, Joe?
The fact that we got a nominee for starters the whole day was kind of a surprise, to be honest with you. We woke up this morning with the idea that this would go on for days, if not weeks, before anything ever came to the floor, because Republicans wanted to settle on a nominee to avoid the embarrassment of what we saw last January fifteen rounds that it took for Kevin McCarthy. But there was a very interesting turn.
There was an effort to actually raise the threshold for that nomination to mirror the majority that would be required on the floor. That failed, in large part because Steve Scalise mobilized the troops to vote against it, and that gave him the opportunity to close the deal.
Today. The question is how long.
Will it take for him to actually get the votes needed to win the speakership, because it appears they still will not go to the floor until then, or will they Either way, there's a lot of confusion and chaos still around this whole story.
So Joe, where does that leave us when it comes to aid not only for Ukraine but Israel as well.
Well, that's a great question, because nothing can happen, and until there is a speaker they're talking about it. I spoke with Michael McCall earlier today, who chairs the House Foreign Affairs Committee and is close to leadership.
He voted for Steve Scalise and.
Has already has a promise from the Speaker in waiting, assuming that Scalice gets the gavel, that the first order of business will be to bring McCall's resolution on Israel to the floor. That would condemn the attack and express support for Israel and set the stage for a supplemental funding request. But Doug, it's important here. We're talking now about combining funding for Israel, funding for Ukraine, funding for Taiwan,
and for border security all in a single bill. There's strategy essentially to dare people to vote no against.
Any of them.
Yeah, exactly, because of the urgency that I was about to mention. We also heard from Israel's Prime minister and the Defense minister today about wiping out Hamas. And in addition to that, you had these air raid sirens sounding in northern Israel. That raises a specter of his Blah getting much more involved in this. I'm curious so because I know this will have come up in the shows that you've done and from talking to guests today, what might have raised some hairs on the back of your neck.
Well, that's the great worry right now. This is what's keeping people up at night, that if this breaks out to the north, it's going to change the game. And it's partly why we now have not one, but two aircraft carrier groups that are steaming toward the eastern Mediterranean as a deterrent to keep Iran out of this, to keep Hezbollah out of this. But look, you hear sirens like that today and you immediately think that something's going on here.
The Israelis did go out.
Of their way to say that that was not what first was thought, that there was no incursion into Israeli airspace. But you know, look, this is an extremely delicate moment. Right now, and if we do see things break out to the north, it's going to be a military problem, it's going to be a problem for the oil market, and it's going to change the conversation in Washington most definitely.
And Treasury Secretary Yellen was saying that her department is going to continue to review sanctions on not only Iran, Hamas and hezbalah Is. Within Congress, are there calls for tougher sanctions right now?
Sanctions have been less a part of the conversation, although we are hearing about it. I think there's a drive to start enforcing the sanctions that are in place, whether you're talking about Iran or Russia for that matter, But there seems to be just a general sort of I don't know if I should use the word realization, because not everybody agrees on this, but there's a thought that sanctions just have not been working and that there needs
to be a different approach. If not stronger enforcement, then maybe we should be talking secondary sanctions or something beyond that. But we can't even get a resolution passed in the House right now, and we'll take things one step at a time.
You know, Joe, I'm just curious if we go back to the speakership vote again, how involve the Democrats are sort of feeling they must get here in order to.
Press the vote and press the action.
Well, look, they'll tell you that they're prepared to.
Vote for a man named how Kim Jeffries, and that Democrats are not going to go out of their way to help Republicans figure this out because they do see a long game here that brings us to an election at the end of the year that could mean Democrats retaking the majority in the House. They're not going to help Republicans try to limit the chaos. In other words, at least that's been the case so far. We are allowing, however,
for some deal making to take place. Steve Scalise has worked with Democrats in the past and is very different than Jim Jordan. Could be cutting a deal as we speak with Hakim Jeffries or with the White House, and that's the part that happens behind the scenes that we just don't know about. But I wouldn't expect to see a lot of Democrats voting Scalise on the floor.
So we avoided a shutdown a couple of weeks back funding through November seventeenth. Is there a high risk that we could be facing the threat of another shutdown in a big way?
Absolutely.
I mean, look that there were thoughts of creating a caretaker speakership with Patrick McHenry, who's the Speaker pro tem right now, has no real power but just to avoid the shutdown. So it appears that there is going to be an effort to get this figured out before then, But that doesn't mean that the work will be done. The House has only gotten through four bills. The Senate has all of the appropriations that it needs to, so
now we're talking about another continuing resolution. Both Jim Jordan and Steve Scalise have acknowledged that that would be likely the next step if they became speaker, because there's no way.
They're going to have a budget ready for the seventeenth of November. Joe, probably the question you're dreading. Has Donald Trump weighed in at all, privately or publicly.
On the speaker fight. Absolutely, and it probably helped us get to this point. He endorsed Jim Jordan, and that might be the very reason why Jim Jordan did not become the nominee today. It did not help him in any regard Donald Trump was talking about coming up here. He did not do that, but you're hearing analysts on both sides of the aisle say Trump lost another one.
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I'm Brian Curtis.
And I'm Doug Prisner. Join us again tomorrow for all the news you need to start your day right here on Bloomberg day Break Asia.