Good morning.
I'm Brian Curtis and I'm Doug Krissner. Here are the stories we're following today.
Let's get right over to Ed Bastro, who is looking at the President's upcoming trip to Israel and all the rest of the news from San Francisco.
Ed.
Yeah, thank you, Brian. Israel's military says it did not strike a hospital in Gaza. It says Islamic jihad militants sit with rockets. Prime Minister Benjamin net Yahu says it was terrorist. He says definitely not. The Ida for Ports earlier have said at least five hundred people died in the attack. Meanwhile, while on the humanitarian front, trucks carrying aid from Egypt were unable to cross into Gaza today. More from Bloomberg's Oliver Crook in Tel Aviv, and.
Literally hundreds of tons of aid that are just sitting there waiting to get through. We've heard from the Egyptians, We've heard from the Israelis. The Israelis have said that they want to create the conditions under which this aid can finally move through, but they said it's going to take time. Their main concern is that this aid gets taken in commandeer by Hamas.
And this, of course with a backdrop of the pending Israeli ground invasion. Bloomberg's Neck Watams reports Israeli forces continue to pound targets there an exception of the invasion. Bloomberg National Security correspondent Nick Watams reports, no word from Israel.
Something that they're not putting a timetable on. They're not going to give a sense for when it might happen, but that it could happen at any time. I mean, one thing that is important to say that we think is at least a reasonable expectation is that it would not start with President Biden in the region.
And next US is putting two thousand troops on high alert and extending the deployment of a carrier group in the Eastern Mediterranean, and President Biden is due to board Air Force One this evening for an arrival in Israel tomorrow morning local time. Bloomberg's Kaylee Lyons says, certainly a show of unity.
But there is also the concern of the fate of the hostages, number of which held by Hamas are expected to be Americans, and the President would like to see every effort need to retrieve them and rescue them alive.
And the president's schedule to meet with leaders of Egypt and Jordan. But now Jordan is announcing the summit with Arab leaders has been canceled. And then the White House came out saying that President Biden says he canceled that leg of the trip, and I sees John Kirby says, regarding the AID.
It's really on the humanitarian front, and he'll be hitting that not only hard while he's in Israel, but when he goes down on Jordan and speaks to President Ceci of Egypt, President of Bassa, the Palestinian authority, and of course King of Dollah, all focused on making sure that humanitarian assistants can flow in.
So again the Biden trip to Israel still on to the Arab leader meeting apparently has been canceled. Jim Jordan not the House speaker. He got blatantly rebuffed today in the first round of voting. There'll be no votes tonight. Bloomberg's Jonathan Tamari says it did not go well at all.
Leading up to today. The word from Jordan's supporters as well, it would be like eight to ten people who oppose him well, we're looking in double back, and he's in a worse position than Kevin McCarthy was in January, when Kevin McCarthy took fifteen rounds to become the speaker, and he was really the consensus candidate.
And Bloomberg's Wendy Benjamin says, the question now is how long can this go on?
Will the House be willing to keep doing this? I mean, there is the White House has sent a one hundred billion dollar aid request for Israel over to the House. The Senate says, sure, we're going to take it up because we're a functioning chamber of Congress and the House can't do anything. The Democrats may offer Patrick McHenry, the acting Speaker, more powers, but there's no sense on the Republican side that they're willing to do that.
Now. Part of the problem for members of the House is Jordan's loyalty to Donald Trump and in the past not acknowledging that Trump lost the election. Well, ABC's Rachel Scott caught up with Jordan earlier today.
Book said it's important for the Republican Speaker of the House to acknowledge that Donald Trump lost the election.
Do you knowledge that the sounds of silence, Global news power by more than twenty seven hundred JO list and analysts in over one hundred twenty countries in San Francisco. I'm Ed Baxter. This is Bloomberg, all right, Brian.
Yes, c in Hong Kong. I'm Brian Curtis, along with Doug Krisner. Our colleague Vunny Quinn will join a little bit later this hour, and we have more coverage here. The White House is eyeing a sizeable package to help support Israel and others in the wake of the Hamas attacks. Bloomberg's Erica Hrskowitz has more.
President Biden is reportedly considering a supplemental request of approximately one hundred billion dollars that would include defense assistants for Israel and Ukraine, alongside border security funding and aid to nations in the Indo Pacific, including Taiwan. The comprehensive package seeks to leverage broad bipartisan support for Israel in the wake of the Hamas attacks to help ease passage of aid for Ukraine, which has struggled to earn the favor
of House Republicans. The inclusion of border security funding may also help garner support from Republicans who have long linked additional foreign assistants to addressing an influx of migrants in the US. Erka Herskowitz Bloomberg Radio.
Well, the US is restricting the sales of computer chips made by Invidia specifically designed for the Chinese market. This is part of a sweet being new update to export curbs designed to block China's access to highly advanced semiconductor technology. Here's bloomberg zed Ludlow.
In the Nvidia context, remember how important China is. In the last earning score, in Vidia stated that in the data center context, China was twenty to twenty five percent of sales, within the historical range. In Nvidia has issued US a statement saying that it complies with any regulation or export requirements. But here's the key point. We don't expect a near term meaningful impact on our financial results.
That is bloomberg ed Ludlow. By the way, these tighter controls are targeting in Vidia's A eight hundred and h eight hundred semiconductors. In Nvidia created these chips for export to China after the Biden administration introduced its initial restrictions. That was last October, right, and.
In Nvidia took quite a hit in the market today, down four point seven percent. Some of the other ship makers hit pretty hard as well well. Traders at Bank of America had their best third quarter in at least a decade, and net interest income came in better than expected. We heard from Bank of America's CEO, Brian moynihan. He says growth in the bank's consumer checking business has been integral.
We do really well with young Americans, and so we keep adding that account growth of nine hundred thousand for the last four quarters a million and the four quarters before that, those numbers are net growing to thirty seven million Americans. Customer satisfaction, high employee satisfaction that area, and it all works, and it produces a nine hundred and eighty billion dollars in deposits and.
Consumer Brian moynihan. There, Bank of America's shriffes were up two point three percent.
In New York, we go to Goldman Sachs next. The firm reported trading revenue for the third quarter above expectations. Even so, Goldman saw a second straight quarter of losses in its real estate assets, and in the end, these facts dragged Goldman's profit lower. Here's Bloomberg's Alison Williams.
I think the pressure from investors is really more on the cost side and how they can meet their overall cost goals. I think the consumer business, as you said, it's a lot of headlines because it's very unlike Goldman, you know, and it was it was sort of a little bit of a head scratcher when they went into the business. It was it was almost like a negative foreshadowing for the rest of their business that they would
do that. But I would say that investors never owned Goldman Sachs to own that, and I think investors are probably happy that they're focusing on their you know, they're focusing on their core and their core. I mean, the trading results very good, but investors likely anticipated that, that.
Is Bloomberg's Allison Williams. By the way, Goldman's share it's finished down one point six percent in regular trading. We'll hear from Morgan Stanley tomorrow before the opening belt Brian.
And crossing to this part of the world, Doug China's latest economic data do out today are expected to show an economy that he is sputtering. Bloomberg's Joan Wong has the story from Hong Kong.
The data will likely show GDP expanded four and a half percent year on year in the third quarter. That's below the government's annual target and will likely stoke calls for more stimulus. It's not that past stimulus hasn't worked, as some measures are expected to show progress. September's industrial output may rise four point four percent, almost in line with August. Retail sales likely accelerated to four point nine percent, but will it continue. Some economists have been raising their
forecasts in recent weeks. They anticipate China will come close to hitting its overall growth target for twenty twenty three of around five percent. In Hong Kong joined Wang Bloomberg Radio.
I'm Brian Curtis So along with Vonnie Quinn. Our guest is Henrietta Trey. He's managing partner and director of Economic Policy at Veta Partners. Henrietta I wanted to start off with kind of a broader question here and looking at the House Speakership.
Disaster, I suppose you could call it today.
If effective can US diplomacy be when you have the body politic in the United States so fractured that any promises from any US politicians, even the President may seem unenforceable.
That's a great question. It's funny Ken Buck, one of the Republicans who voted against the speaker McCarthy originally and voted for his ouster and then voted against Jim Jordan. Here he had an incredible quote right off the floor after the Jordan vote. He said, no one's watching us, this doesn't matter, no one cares. Is effectively what he was implying, And that sounds like a great answer to your question that the members themselves don't think they're important.
But what he went on to say is there's no urgency. We don't have a supplemental yet from the White House on Israel aid. The government doesn't shut down until November seventeenth. The Republican Party does not have an agenda or an urgent ask that they need to to accomplish, And so effectively he's saying, we have time. I agree that the ability to have diplomacy while the one wing of the Congress is pure chaos is hard to fathom. But you know the real answer functionally is they just don't need
to find a speaker yet. And I think it could be another one to two weeks before they do, and ultimately I think they will probably fail. And so the off ramp is to just give more authority to the Speaker pro Tempore Patrick McHenry, a Republican from North Carolina, on only the absolutely urgent must pass legislation like aid to Israel.
And so how long would that last then, Henrietta, and what would the legislation look like.
That's a great question as well. So there are thoughts about making any expanded powers of the Speaker pro tempore temporary.
November seventeenth is the deadline. It's most frequently discussed because that's when the government shutdown happens, and so by extension, they're effectively saying all will vote on is bills to keep the government open and an emergency aid package to Israel, Ukraine, the US Mexico border, and Asian nations including Taiwan, and what we have in the crisis with Israel is a very helpful dynamic on Capitol Hill and that it can keep the government open because I suspect they will all
get lumped into one big bill and that Speaker ProTem for I will be in a position of expanded power for as long as that takes. To cross to pass.
So as we see Republicans sputtering to a degree here, what's the smart play by Democrats?
You know, this is kind of the example of you give somebody the longest rope they want to hang themselves with. The Democrats are, you know, marching in lobstep behind Jeffreys. There's been no wavering. He gets two hundred and twelve votes every single time. And I think it's very interesting and telling that the narrative Republicans are trying to spend, most specifically Kevin McCarthy today, is that somehow this is
Democrats faults. And from the polling we can see and the way that the American public is responding, that's not something that's resonating with the American voter. So I think Democrats are just letting this play out. They are hoping for an alternate solution, that is the Speaker pro tempore being expanded, but they're just sort of holding the line and watching the planes.
Henriette, if I could shift gear just a little bit, we saw the cavalcade, the President's cavalcade leave a short time ago. What will President Biden want to achieve in the Middle East, particularly now that the Quartet salm It and that man has been canceled.
Yeah.
Absolutely, I mean, obviously, I think the escalation things are rapidly moving in Israel. I think he wants to signal plane and unwavering support. I think that is part of who Biden is sort of to his core, let alone is just a represent of America. So to go over there during wartime is I think a pretty powerful message to say we're on your side, but also do not escalate. And I think him physically being there is a powerful
way for him to get that message across. Obviously, the cancelation of various meetings is something that will make the optics of this even worse. And I think as time goes on, opposition to Israel and to Hamas and potentially Iran and Lebanon is only going to grow as sort of the dust settles that people feel more comfortable getting angry about what they're seeing. And that's the phase that we're going to enter into next.
So one key question is can President Biden be kept safe there? And of course the intelligence community would say yes, he can be, and this is what we do. But then if you look at the failures so far from the original attacks, that hamas made to even an incident like we saw at the hospital, where we still don't know whether this was an incoming missile or the failure of a missile trying to be launched from there by the Palestinian side, how confident can we be that President Biden will be safe.
That's so fascinating to watch the optics of this play out. You know, ordinarily you would have a president just show up in the dark of night, you know, the way we saw. You know, my thinking is Bush in Iraq in the past, you'd have a president just magically appear in the middle of the now announcement beforehand, right right, Absolutely,
I think it's, you know, an obviously dangerous situation. And again especially with the layer of the two aircraft carriers being over there, more support going and they're trying to
neutralize any impending escalation. The fact that the ground defensive has not formally been launched, I mean, obviously it's not great, to say the very least, But the fact that there is some hold up from the original twenty four hour expectation in a few days back, I think is indicative of Secretary of State Lincoln's efforts to sort of contain the situation and Biden physically going over there makes it
a high alert situation. You knows everybody will potentially and hopefully be on their best behavior.
It would seem, in fact, Brian, that you know, some of the optics would be you know, for everybody knowing that the president is going that's that was undone on purpose this time around.
Well, we hope he will be safe. And we have to say to Henrietta Trees, thanks so much for joining us. We always love having you on the on the show. Thank you. Henrietta Trey is Managing Partner director of Economic Policy at Veda Partners. 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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