Good morning.
I'm Brian Curtis and I'm Doug Prisner. Here are the stories we're following today.
All right, now it's time for global needs. US is expressing concern on multiple fronts today about potential spread of the war in the Middle East, and Baxter is covering that as part of the Middle East story and has all of this reporting from San Francisco.
Ed all right, thank you, Brian. Right, US ratcheting up efforts to keep the Middle East war from spreading. Secretary of State Anthony Blincoln will extend his trip further and go back to Israel.
I've heard from virtually every partner. Was a determination I've shared view that we have to do everything possible to make sure this doesn't spread other places.
That says Gaza civilians should not suffer.
As I said in Tel Aviv, as President Biden has said, the way that Israel does this matters, needs to do it in a way that affirms the shared values that we have for human life and human dignity.
And meanwhile, the US is confirming at least thirty US citizens are confirmed dead in the violence. About a million people have been told to evacuate northern Gaza. Meanwhile, ahead of an expected Israeli assault on Hamas and AS Ready Defense Forces spokesman Lieutenant Colonel Peter Lerner says Hamas is trying to prevent the safe evacuation of people.
They establish checkpoints to try and prevent people. They disseminated messaging telling people to ignore that. Ignore that, and it just goes to show how Hamas is actually trying to put the people of Gaza at more risk.
And White House National Security Advisor Jake Sullivan on ABC has heard on Bloomberg says US is trying to get aid into Gaza.
We are in touch with our Israeli counterparts. We're in touch with the United Nations to help secure the necessary supplies of food, water, and medicine to the citizens of Gaza, those Palestinians who have nothing to do with the barbaric terrorists who carried out this attack.
Meanwhile, Hezbollah has attacked Israeli army positions near the border with Lebanon Ran backed Hezbola has fired guided missiles again at the post and also destroyed a tank with live ammunition. Meanwhile, a bipartisan group of US lawmakers is in Israel, and Senate Majority Leader Chuck Schumer says an aid package is on the way.
We're not waiting for the House, plain and simple, that would be foolish. But we believe if we put together a strong package and pass it with an overwhelming, strong bipartisan majority, it will put pressure on the House one.
Way or another.
Yes, so nothing. They're not waiting for the House, is his bottom line. Meanwhile, the House will attempt to elect a speaker on Tuesday. Members notified today the vote will occur the Republican caucuses and nominated Jim Jordan for the job. Whether or not he has a sport to get it done is still a question. Meanwhile, House Minority Leader Hakim Jeffrey says he's an informal talks with Republican colleagues about
a potential solution to finding a speaker. Jeffreys on NBC has heard here on Bloomberg's as Democrats are ready willing and able to find a solution.
There are informal conversations that have been underway. When we get back to Washington tomorrow, it's important to begin to formalize those discussions.
So then it'll wait for House Republicans and for Chuck Schumer to get back Philippines have asked China to stop dangerous maneuvers and aggressive actions in the South China Sea. It is warning a potential collation of the disputed waters. Philippine military says they had to send warnings to Chinese ships to avoid danger. Global newspower by more than twenty seven hundred journalists and analysts in over one hundred twenty countries in San Francisco, I'med Baxter and this is Bloomberg.
Thanks very much. This is Bloomberg Daybreak Asia. I'm Brian Curtis along with Doug Krisner. Our colleague Paul Allen will join us a little later.
Well.
Israel is hoping to avoid a debt rating cut as investors eye the impact of this war with Hamas we get the story from Bloomberg's Denise Pilargreni.
A top Israeli official in charge of the country's debt says Israel might be able to avoid its first ever rating down great thanks to sound finances. The senior official at the Finance Ministry does say, however, that all bets would be off if the country's war drags out for a long time. The official also calls a credit downgrade an extreme scenario and says it would be more likely
Israel would be put on credit watch. The cost to ensure Israeli bonds against potential default did soar last week to the highest point in a decade, but Moody's Investor Service Friday postponed a plan review of Israel's rating and said it would continue to evaluate instead. Denise Pelgridy Bloomberg Radio.
The head of the World Trade Organization, is warning that war between Israel and Hamas will have a big impact on global trade if the conflict were to spread. More from Bloomberg Steve Rappaport.
WTO Director General and Gozi al konjo Awella says the war will only further weeken global trade, already crippled by high interest rates, China's stressed real estate market, and Russia's war with Ukraine. Doctor okonjo Owella says she hopes the conflict ends soon and it's contained, adding everybody's on eggshells and hoping for the best. The WTO last week cut its growth forecast for global goods trade this year. Steve Rappaport Bloomberg Radio.
US Secretary of State Anthony Blincoln has urged China to use its influence in the Israel Hamas conflict. Bloomberg's Joan Wong has the story from Hong Kong.
The US State Department says Blincoln had a long conversation with Foreign Minister Wanghi before departing from Riat. The Jew spoke for about an hour. It was their first call since the Hamas attacks on Israel a week ago. B Lincoln urged Beijing to help prevent other state or non state actors from attacking Israel and widening the war. The US has been particularly concerned about Hesbala, the Irun back to militia group in Lebanon. The administration is worried about
an additional front being opened on Israel's northern border. In Hong Kong, join Wang Bloomberg Radio.
We go to China next to where the Central Bank is saying now that the domestic economy and the property market are showing signs of improvement. We have more from Bloomberg's boniau In.
Central Bank chief Pangong Shuang said indicators including industrial production and services showed positive trends in the economy. He spoke at the IMF meetings in Morocco. Pen also said China's local government debt risk is structural and generally manageable.
He said.
China with step up efforts to attract foreign investment and stabilized trade, but he was not specific about the details. Penn said China would seek more sustainable growth while maintaining what he called a reasonable pace of expansion in Hong Kong. I'm Bonnie ol Bloomberg Radio.
Back in the United States. Wall Street will have plenty to contend with this week, not only the geopolitics you've been talking about, but also a flood of earnings reports coming. We get more from Bloomberg's Charlie Pellett.
Among the financials this week Goldman Sachs, Morgan Stanley, Bank of America, Blackstone, Bank of New York, Mellon, American Express, and Charles Schwab. We'll also hear from a broad range of S and P companies. Sarah Malik is chief investment officer at Neuvene.
Coming into earning seasons, we've seen cutstick and census. I think there's upside companies can eat and raise. Also, margins are expected to be down, and we're coming off three quarters of our earnings are session of negative negative earnings growth.
Also this week at and T, Johnson and Johnson, Lockheed Martin, Netflix, and Tesla, among many others. In New York, Charlie Bloomberg Radio, all Right, the time here.
Is about ten minutes past the hour, and we are looking at some of the top stories here with our guest Benjamin Antony, co founder and CEO of the Murriam Institute, to talk a little bit more about the Israel Hamas war. Paul Allen from Sydney joins this for the conversation as well. Benjamin,
thanks very much. I guess pressing here at the moment is these more than half a million gozens that have moved to the south of Goze, and yet at the same time we don't know yet whether or not the border with Egypt will be opened for supplies, so that could develop into a humanitarian crisis. So how urgent is that and can you flesh out some of the some of the behind the scenes actions on that.
Yes, absolutely, and thank you for having me. The situation with the Gazans who are moving southward is the result of the IDF's efforts to reduce to its lowest number the civilian casualties that will be caught in the crossfire in the event of a ground incursion. Now it's important to emphasize the ground incursion has not yet taken place.
We are beyond a week since the attack last Saturday upon the civilians of the States of Israel that resulted in thirteen hundred members of our society here being massacred in the most horrendous and horrific manner, and more than one hundred and fifty being taken as hostages. Still being held, including our elderly, are infirm, our women, our children, even
and born children. It's reported to be the case. And as a consequence of that, the IDF seeks to now clear out northern Gaza of Hamas fighters with a view stated view to toppling the Haramas military regime. With that in mind, they have called repeatedly and at length for Ghazans to move by where the humanitarian corridor signed by the Israel Defense Forces down to the south toward the Rafia crossing, and they have also called upon the Egyptians
to open the border if the need arises. Now, with that having been said, there is a movement of people down toward the south. That is a positive development. Israel has turned on the water supply and gas supply in southern Gaza as a result of the influx of those individuals and of those people. But it's very possible that Hamas is cynically holding others and it seems to be the case in northern Gaza with a view to causing deliberately civilian casualties in the event of what seems to
be an inevitable ground incursion. But there are still many questions to be asked about that.
We have been hearing some pretty hot greater it come from Israeli Prime Minister Benia Bendit in terms of wiping Hamas.
Off the maps.
So what does Gaza look like at the end of this conflict? And there is there a risk for Israel here in terms of the scale of its retaliation.
I think that there's always a risk. War is one of those things that one only gets a retaliation upon contact, right and everybody has a very clear strategy until there is engagement with the enemy. The reality of the matter is that for years right who, despite the FIY rhetoric, has decided upon a cautious approach towards toppling fighting countering
Hamas operatives inside the Gaza strip. I don't refer to the toppling of the Ramas movement because obviously that was not achieved, but the targeted killings of leaders of Kamas, that's something that net has been very measured with in the past. Now, what's interesting about this is he's formed a war cabinet which includes members of the opposition, including former Defense Minister in chief of Staff Benny Gantz, and another former Chief of Staff of the Israel Defense Force
is Gaddy Eisenkott. Now, fascinatingly, all three of these individuals have worked before with regard to the Gaza Front, and on all occasions they have adopted a cautious, measured approach. So to move from that approach to an approach that would match the rhetoric you mentioned of Prime Minister Netanyahu, which alludes to the toppling of Karmas, that's going to take a dramatic shift in mindset and strategy. We'll wait
and see whether that occurs. One interesting aspect at play there is a new individual, the Defence Minister Joa Gallant, a true combat fighter of the Israel Defense Forces, formerly the head of our Naval Commando unit in Israeli Navy, and he may be able to pound his fist with sufficient vigor to move towards a decisive outcome against Kramas.
Benjamin Israel has said repeatedly it doesn't want occupy guys, and I think many people would believe that. But even if victory is declared over Hamas, how can Israel be sure that another group just doesn't pop up. In fact, even in the West Bank, Fatah and a lot of supporters there have been saying that they would back Hamas, So it seems like just getting rid of Hamas, even if that happens, that's not enough.
I think you're absolutely right. Israel in the past has been saying that it does not want to retake the Gaza Strip, it does not want to remain inside the Gaza Strip. But of course that was prior to the events that took place on Saturday morning, October the seventh. Those events have shaken is Ready to society to its core. It has brought about very real questions that I surely will be asked of our entire defense establishment and our leadership going all the way up to Prime Minister Netta Yahu.
Now's not the time to delve into those recruitments. Nations that surely await, but the mindset has shifted. The mindset is that this is a presence there ramas in the Gaza Strip that cannot be permitted to re arm. Now how that might turn out, Well, it could be anything from a full military reoccupation of the Gaza Strip. That's something that certainly is being talked about, but it's not something that's met with a very enthusiastic appetite for reasons
that you well understand. And we could see some sort of arrangement whereby the Israelis move in, the IDF moves in, disarms tramas and then holds strategic areas to prevent the rearming of camas, such as the Rafah crossing, the Rafa crossing down there alongside. That's possible.
Just to quickly, Benjamin, we have a unity government, a unity war cabinet in Israel at the moment. How long can that survive?
Well, that's a very interesting question. I don't think that that will survive for very long at all. If I can be frank about it, I think that you're going to see Prime Minister Netan Yahoo and the Chief of Staff and the upper echelons of the entire security establishment, perhaps fight and fight with regard to combating Hamas as though this is indeed their last fight atop the leadership
of Israel, because quite frankly, I believe it is. When you ask me how long the unity government will last, I would imagine until the recrimination, the inevitable recrimination starts here in Israel and people start moving to have neta Yahoo move aside.
This is Bloomberg Daybreak Asia, your morning brief on the story is making news from Hong Kong to Singapore and Wall Street.
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