Biden's Israel Warning; House Speaker Dodges Ouster

Bloomberg Audio Studios, Podcasts, Radio News. Good morning.

I'm Nathan Hager and I'm John Tucker. Here are these stories we're following today.

John, we begin with the latest on the war in Israel. President Biden is warning he will stop additional shipments of offensive weapons to Israel if the country goes ahead with the ground invasion of Rafa in southern Gaza. In an interview with CNN, Biden highlighted the potential loss of civilian life if Israel goes into the densely packed city.

If they're going to Rafa, I'm not supplying the weapons that have been used historically to deal with Rafa, to deal with the cities, to deal with that problem. We're going to continue to make sure because you're less secure in terms of Iron Dome and their ability to respond to attacks like came out of you the least recently. But it's just wrong.

President Biden's comments on CNN, coming after the US pause delivery of about thirty five hundred bombs to Israel by the decision meanwhile being criticized in both Israel as well as Republican members of Congress. Kentucky Republican Andy Barr joined Bloomberg Balance of Power and said this is unacceptable.

This is an affront to the relationship between our two countries. The fact that this administration is rejecting an Act of Congress and turning its back on our key ally in the Middle East is obnoxious.

Republican Congressman Andy Barr of Kentucky. On the other side of the Isisle, Georgia, Democrat Rafael Warnock also joined Bloomberg Balance of Power, and the Senator said, we need to do what it takes to end this conflict.

But I'm also very concerned about over thirty thousand Palestinian lives that have been lost in this conflict, the majority of them being women and children. So I'm hopeful that at the end of the day, we will recognize that the answer to death and the stry production is not more death in destruction.

Democratic Senator Rafael Warnick Canada that Congress will be keeping a close eye in the situation to hear the full conversation with both Senator Warnock and Congress and Bar. Get the Bloomberg Balance a Power podcast available wherever you get your podcasts.

And staying in Washington. Democrats have helped halt a move by hardline Republicans in Congress to oust the speaker, Bloomberg said, Baxter has that story.

Marjorie Taylor Green did keep her promise to try and bring it to the floor, but was defeated overwhelmingly three hundred and fifty nine to forty three. Johnson responds back to the real business at hand.

They made their voices heard on the motion of vacate matter, and now we have very important work to do for.

The country, and says he hopes the tenor of the Chamber will now change.

Hopefully this is the end of the personality politics and the frivolous character assassination that has defined one hundred and eighteenth Congress.

It does leave Green on a political island. Only eleven members from her party stood with her at Baxter Bloomberg Radio.

Thanks said, and to the markets now. Stocks edged lower before the jobless claims us out at eight thirty Wall Street time. It comes with earning season winding down and investors are waiting fresh data on a potential timing for lower interest rates. Traders have digested Fed speak this week on the potential path for rates, including yesterday that's when Boston Fed President Susan Collins spoke at MIT.

I do remain optimistic that this can be accomplished in a reasonable amount of time and with a labor market that remains healthy. But there's a significant amount of uncertainty around that outlook, and the recent data lead me to believe that it's just going to take longer than previously thought.

Boston Fed President Susan Collins says the Fed remains focused on bringing inflation back to its two percent target.

And those comments from Susan Collins john come ahead of consumer price data coming next week and following the smallest gain in six months for non farm payrolls last week. Richard Clarina, former Vice chair of the FED and current Global Economic advisor at PIMCO, says he still expects the Fed to be patient and remain data dependent.

Since the beginning of the year, the inflation numbers have been going in the wrong direction, and also especially I think what's relevant here is an element of risk management, so I think there is path dependence. The fact that the last three years inflation has been well above target. I think it makes it a harder call to cut preemptively.

Richard clarieda of PIMCO says if he were still fed Vice chair he would not consider cutting rates right now.

And meanwhile in Europe, markets are points for a stronger signal on when the Bank of England will cut interust rates. With the Bank of England decision coming today. In Bloomberg's Ewon, Potts joins us from London with the latest here on good Morning.

Good morning John and Nathan. Inflation and growth forecast will be key for the Bank of England today. The old Lady of fred Neil Street almost certain to leave UK rates on hold at five and a quarter percent, a sixteen year high, but keeping out for changes in the vote balance on the committee. Will the Dove find new

Okay you and thank you. Heading to Asia now in a focus on Tesla, sources tell Bloomberg News the electric vehicle giant is ramping up job cuts in China as sales slow. The layoffs reportedly affect a range of departments, including customer service, engineering, production line, and the logistics team. At Tesla's Shanghai plant.

Elsewhere in Tact Bloomberg's reporting on the huge dilemma to Apple, Who's going to succeed CEO Tim Cook? Bloomberg Chief Apple correspondent Mark germatt As examined Cook's tenure and who could follow him to lead the multi trillion dollar company. Grimman says, they're a number of candidates who could fill that role if Tim.

Cook would have stepped down in the very near future. Look no further than Jeff Williams. He's Apple's chief operating officer. That was the same role that Tim Cook held for many years under Steve Jobs. The other part of it is that he's only two years younger than Look, that's a problem that leaves us with someone else. That's John Turnas, the senior VP of hardware Engineering.

Bloomberg's Mark Germit says he strongly believes this the session will happen internally and believes John Turnis is emerging as Tim Cook's most likely successor.

And Elsewhere in company news, John shares in chip designer ARM tumbled after a lukewarm forecast. Revenue for fiscal twenty five is expected to be just shyve Analyst estimates of four billion dollars. Kuon John Sabani of Bloomberg Intelligence says it reflects a sector wide slowdown.

The driver for the mislike miss in the fiscal ear guidance was coming really from two major areas. One is networking and the other is the industrial IoT, which most of the semiconductor companies exposed to this rcing weakness here, So that's not companies specific, it's just that end market is going through a cyclical bottom.

That's Bloomberg Semiconductor analyst kun John Sabani, he says. Armed CEO renee Has says the company remains very confident in its long term growth.

Yew.

That brings us to five o eight. We'll so you've tend that for a look at some of the other stories making news in New York and around the world. In for that, we're joined by Bloomberg's Michael Barr Michael, good morning.

Good morning John. Stormy Daniels will return to the witness stand today in Donald Trump's criminal hush money trial. The defense will try to undermine the credibility of the porn actor's graphic testimony about an alleged sexual encounter and the money she got to keep quiet. Daniel's account is central to the prosecutor's case accusing Trump of scheming to illegally influence the twenty sixteen presidential campaign by burying unflattering stories.

We committed a lot of resources to this event here, and I'm happy to say that it's just a wonderful thing to see all of the mutual way that came under one command, and everybody that could do everything right, they did it right. We're still working to remove a lot of debris that has occurred.

Another person was killed by tornadoes in North Carolina. Four flight attendants are facing federal charges for allegedly smuggling drug money while carrying out their jobs. They allegedly used what are known as known crew member or KM privileges, allowing flank crews to bypass TSA security checks. They are accused of smuggling millions of dollars in drug money over many years to the Dominican Republic. All of the suspects are from New York. Delta Airlines confirms too of the flight

Now, I'll tell you the hearings are important because they do deliver accountability where it has been slow walked by either elected officials, like in the case of the mayor of DC, where it took the night before the hearing for them to clear out the Prohamas encampment at GW.

Congresswoman Stephanic says, there are going to continue to be hearings on this crisis. Global news twenty four hours a day and whenever you want it. With the Bloomberg News. Now, I'm Michael Barr, and this is Bloomberg John.

Michael, thank you. We're going to sign out for the Bloomberg Sports Update.

Dan for that.

Good morning, John Stesharwer.

Good morning John Tucker. May eight May eight, nineteen seventy. The late Willis Read shakes off an injury inspires the next to a playoff went at the Garden. Exactly fifty four years later, Jalen Brunson does the same thing. Hurtis Foyt late first quartered In played all in the second. Nicks trailed the Pacers by twelve early in the third, but Brunson return Nick's rally.

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John and Nick.

Coast to Coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.

Good morning. I'm Nathan Hager. Israel is facing even more pressure in public and in private as it considers a full scale attack against Hamas in the southern Gaza city of Rafa. The US is already delayed one weapons shipment to try to stop Israel. Now President Biden is warning even more deliveries could be put on hold unless Israel does more to protect civilians and joining US Now for more from Dubai is Bloomberg Middle East Anchored Jumana Burseetschi Jamana.

Yeah, so significant development overnight. I think it's worth emphasizing here that this is the first halt in military shipments we've seen out of the US to Israel since the October seventh attack, and so from that perspective, it is really quite significant and does pose a bit of a questions about the nature of their leadship right now between US and Israel. Yesterday it emerged that they had decided to hold the shipment of about three five hundred bombs

But for now, what.

We see is there has been a limited assault so far from Israel. They have not gone for that full blown ground offensive that had been talked about the last couple of months, and clearly the US are trying to put some pressure on them now to scale back and to hold back the background. Of course, Nathan is on

Yeah.

So it speaks to the difficult balance that the US is trying to strike here, trying to show that its support for Israel, as it said, remains iron clad, well, trying to keep these hostage negotiations and ceasefire negotiations continuing. What is the balance that the US is trying to strike and how is it being received in Israel right now?

Exactly? So that is the key question here, because I think it is also worth emphasizing that in that interview that President Biden gave yesterday to CNN, he also said we are not walking away from Israel's security, We are walking away from Israel's ability to wage war in those areas specifically those areas. Also again worth reminding people that this is a pause in these shipments, the specific shipments

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