Israel Vows Retaliation for Iran Attack; VP Debate Reaction

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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today, Karen.

Oil is on the rise once again following the latest developments in the Middle East. West Texas Intermediate CREWED is up two and to third percent, trading its seventy one dollars forty five cents per barrel Brent. The international benchmark is up two point two percent, trading above seventy five dollars. This as Israel vows to retaliate after Iran fired about two hundred ballistic missiles at the country. Israel says most of them were intercepted, but one person was reportedly killed

Mal Mazaganosherlan.

Iran made a major mistake and it will pay for it.

Do agm in Iran just ton't understand our determination to defend OFFO and our determination to retaliate to our enemies.

Benjamin Netanyahu's speaking there through an interpreter. US warships helped to shoot down the Iranian projectiles. The US says the attack appears to have been defeated and ineffective. Bloomberg News Middle East Breaking News editor Dana Krash has more on diplomatic efforts to end the fighting.

The US has been taking on this diplomatic role primarily because it doesn't want to be dragged in a war in the Middle East. It has interests there, it has bases there, and that could be very risky for them. It is not just a risk from Iran firing directly at Israel, but also proxies spread around to fire at US interests in US basis in the region. You have

Bloomberg's Dana Krasch says Iran's latest move was a reprisal for Israel's case of the leader of Hesballah, Hassan Nosrala well Nathan.

The war in the Middle East was one of the opening topics and what could be the final debate of twenty twenty four. Democrat Tim Wallace went after former President Trump at the start of the CBS News vice presidential debate.

It's those that were closest to Donald Trump that understand how dangerous he is. When the world is this dangerous, His chief of staff, John Kelly said that he was the most flawed human being he'd ever met.

Republican JD. Vance was quick to respond.

As much as Governor Waltz just accused Donald Trump of being an agent of chaos. Donald Trump actually delivered stability in the world, and he did it by establishing effective deterrence.

The two running mates also sparred over immigration and the economy. Senator Vance aimed his fire at the top of the ticket.

If Kamala Harris has such great plans for how to address middle class problems, then she ought to do them now. Not one asking for promotion, but in the job the American people gave her three and a half years ago.

And during the debate, Governor Walls appeared nervous at times. He addressed some of his past misstatements, like when he said he was in Hong Kong for the TN and Men's Square protests in nineteen eighty nine.

All I said on this was is I got there that summer and misspoke on this, So I will just that's what I've said.

And Senator Vance tried to soften his party's approach on abortion rights, an issue that Democrats have tried to capitalize on.

We've got to do so much better of a job at earning the American people's trust back on this issue where they frankly just don't trust us. And I think that's one of the things that Donald Trump and I are endeavoring to do.

And following the CBS News vice presidential debate, Donald Trump posted on social media that he not only doesn't support a federal abortion ban, he would veto it.

Well, Nathan, there is plenty of reaction to the vice presidential debate, and here's a Bloomberg Politics contributors Genie Zeno and Rick Davis right after the debate.

Yeah, I don't know if there were winners and losers.

I think it's one of them sort of comported themselves in a way that wasn't, you know, particularly special, but you know, sort of met the needs of of their candidates.

I think from a purely debating perspective, I think you have to give it to jd Vance. I don't think that's much of a surprise.

He is a season debater.

I think what he did that through Tim waltz Off a bit, was he was very sort of willing to reach across the aisle.

He was friendly, he.

Was affable, he was talking about being bipartisan, all of those kinds of things.

And that's Bloomberg Politics contributors Jeannie Zeno and Rick Davis on a special debate edition of Bloomberg Balance of Power with Joe Matthew and Kaylee Lodge.

Here.

More of their analysis on the Balance of Power podcast available wherever you download.

Well, Karen, it is day two of the strike that has shut down thirty six ports in the United States. Bloomberg's John Tucker is here with the latest. So, John, are we seeing any signs of progress?

Few? If any. Nathan President Biden met with his chief of staff and other senior ags yesterday evening to discuss the strike and reiterated his desire for his team to continue, urging the carriers to present a strong offer to the long shoreman Acting Labor Secretary Julie Sue she could prove the instrumental she helped to broker a deal between West

All right, John, thank you.

Well.

Let's turn to the markets now, and futures are lower again following the escalation of fighting in the Middle East. As for company news, shares in Nike, they're down more than five percent this morning. The company has withdrawn its guidance after sales missed estimates, and we get the numbers from Bloomberg's Charlie Pillett.

It underscores the ch challenge that incoming CEO Elliot Hill, will face when he takes the reins later this month. During the company's call with analysts, chief financial officer Matt Friend said the move was due to the upcoming leadership transition. Before the call, Nike reported revenue in the fiscal first quarter that dropped ten percent to eleven point five to nine billion dollars, falling short of the average analyst estimate.

Radio, all Right, Charlie, thank you. And in Asia, Chinese shares listed in Hong Kong have jumped the most in almost two years as traders returned from a public holiday. The Hangsang China Enterprises Index climbed by more than eight percent. The extended rally comes off the back of increased optimism around China's economy. Authorities unveiled a range of stimulus measures last week.

Hey, it's time now.

For look at some of the other stories making news in New York and around the world, And for that We're joined by Bloomberg's Michael Barr.

Michael, Good morning, Good morning Karen.

Today, President Biden will surveyed the devastation in the southeast caused by Hurricane Helene. Biden says it's urgent to get a federal response to the victims of the storm. He also talked about the administration's preparation ahead of Helene.

We had over one thousand federal personnel, including search and rescue teams, at the ready on the ground before.

It hit, Biden spoke at an interagency briefing dedicated to the federal government's response to Hurricane Helene. More than one hundred and sixty people were killed in the storm, and hundreds are still unaccounted for. North Carolina Governor Roy Cooper.

We have ninety two search and rescue teams who are continuing to work to rescue people. We know that there will be more fatalities.

Governor Cooper says, Rescue teams trying to reach those washed out by the catastrophic flooding. The attorney representing Sean Didty Combs categorically denies claims that his clients sexually assaulted anyone. This after a new lawsuit filed against the hip hop Pioneer on behalf of more than one hundred alleged victims. They're suing Combs, claiming they are victims of the Hip hop Mogul. Several alleged that they were invited to a party and given a drink that made them block out.

Now represent one hundred and twenty individuals who intend to bring civil claims in civil court against Sean Ditty Combs, as well as claims against many other individuals and entities.

Combs is in jail after a New York judge denied the Hip Hop Mogul's requests for bail last month on charges of sexual assault and racketeering. The change of plea hearing for the former doctor charged in actor Matthew Perry's death is scheduled for today in Los Angeles. He is expected to plead guilty to one count of conspiracy to distribute ketamine. Perry suffered from depression, and his doctors convinced him that he needed to take high doses of ketamine.

All right, Michael Barr, thank you.

Time now for the Bloomberry Sports Update, brought to you by try Stage. Howdy, here's John stash Hour, John, good morning.

Good morning.

During all season, the Mets have not made things easy for themselves. Began zero and five or later eleven under five hundred and so often when they won, they did it and come from behind fashion happened in that epic playoff clinching win in Atlanta and the next night in mil One. Twice the Brewers went ahead. Both times, the Mets followed with runs three in the second inning and even bigger uprising in the fifth and a swinging a.

Bouncer right side.

It's a base hit. One run is in for New York. Here comes Viento's from second. The throw goes to third, and the Mets have scored five runs in the fifth. They now lead the Brewers eight to four, and this entire rally has happened with.

Two outs ESPN the call.

Not a single hit by either team after that, Mets one, eight to four. Another win tonight gives in their first series victories in twenty fifteen and San Diego Fernando Tatis Junior two run over first inning and Andres went on to shut out Atlanta four to nothing. In the American League, the road teams won Detroit red hot down the stretch with a likely Cy Young Winna Drink Scooble dominating. The

Time of one.

It would not be a surprise if the Raiders trade Davonte Adams. They admit to talking to Teams. Adams has now requested a trade. Jets are interested Adams many years a teammate of Aaron Rodgers in Green Bay. Rodgers said yesterday his relationship with Jets coach Robert Sala has been great since day one. The two openly disagreed about Rogers use of cadence. Last Sunday, John Stasheedward Bloomberg Sports, Karen and.

Nathan all Right, John, thank you and the Bloomberg Sports Update.

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Good morning, I'm Nathan Hager. Tensions in the Middle East running higher than ever after Iran's barrage of ballistic missile attacks against Israel. Speaking through an interpreter, Israeli Prime Minister Benjamin Natan Yahoo is promising to retaliate.

The regime in Iran does not.

Understand our determination to defend ourselves and our determination to taliate against our enemies.

For the very latest with us from Tel Aviv is Bloomberg News Israel Bureau chief Ethan Bronner Ethan, good morning. First off, do we have a sense of the impact of Iran's attack yesterday. Obviously it was much bigger than what we saw back in April, So.

The attack was much bigger, Nathan, And indeed the impact was bigger, but it still was relatively limited. We're still gathering what we can figure out about. There seemed to have been some apartments damage to north of Tel Aviv. There was a restaurant damaged. There was one man killed in the West Bank of Palestinian but we're I'm unaware of any other deaths or any very serious damage from this attack. But they you know, these missiles got through some of the air defense systems and it was a

At the same time, we did hear from the White House that really President Biden said that the attack appeared to have been defeated and ineffective. At the same time as we just heard Israeli Prime Minister Netsan yahoo Is vowing retaliation. What kind of response could we see could we be anticipating from the Israeli side.

I think we're.

Looking at a fairly severe expectation. I think that this is going to ratchet it up. I think the Israelis feel that they have to respond with severity.

I don't know when it's.

Going to come, but I think it's going to come in the coming days, and I think it's going to go after It's not going to be symbolic. It's going to go after some fairly important spots in Iran, strategic perhaps oil, perhaps nuclear. I don't know. The Americans say that they're on board with cooperating in some fashion. I think we are looking at a fairly intense upsurge here, to be honest.

So we don't see any sign that the movement of further US personnel, further US equipment into the Middle East could be acting as some kind of deterrent at this point.

I mean, when you say to Turrent, the implication is that deter Israel's actions, I think the idea, yeah, But I mean I think.

That the turns to those things.

Yeah, yeah, So don't I think that the goal of sending those people in personnel ad equipment is to bolster the anti Iran approach, And so I think that may happen, and I think that, No, I don't think that the Americans are seeking to drive Israel away from much. I don't know. I mean, obviously they're negotiating together right now, but I don't forget that the Americans said to Iran, don't do this, and if you do, there'll be severe consequences,

Is there a risk at this point that if we do see a further direct confrontation between Iran and Israel, that even more parties could be drawn into the conflict.

Sure, I mean the part is that you're thinking about, I suppose are the various militias and proxies that around you know, funds and train so they will. Certainly, I expect there'll be more terrorism inside as well, the way there was yesterday two guys carried out gun attacks south of Tel Aviv.

There might be more of that.

Look, I don't think that the States are going to get involved Syria, Egypt and so forth. And you know, I don't think so. I think when we talk about an uptick, we mean the United States and around.

That's about as big as it gets.

Right right, Well, We'll be continuing to monitor developments. We appreciate the update from you. Ethan Bronner, our Middle East Israel Bureau Chief, joining us this morning from Tel Aviv and for more insights. We have a roundtable discussion on what's happening in the Middle East, as well as reaction to the vice presidential debate from CBS News, where the

Thank you. It's clearly very elevated.

Markets have been trying to ignore the escalation since October seventh of last year. The anniversary is coming up. Israel will need to respond and we stay in this very dangerous, high stakes game of geopolitical ping pong. But market participants will be focused on targets and for something that seems.

To be different in terms of escalation.

So last night's attack had a modest impact on oil prices, but that's going to be counterbalanced by Saudi Arabia's announcement that it's increasing its product targets.

Terry, I want to bring you into this conversation as well. We saw the candidates for vice president address this issue, the current tensions between Israel and i Ron right at the top of last night's vice presidential debate. Did the running mates meet the moment? Did they make the case effectively in your view for the tops of the tickets being able to confront these geopolitical risks.

Well, I don't think they convinced anybody that already wasn't convinced. For one candidate or the other. But the unanimity and the approach overall should be a significant takeaway for people outside the United States as to the degree of unity that in fact and bipartisan unity that in fact does exist. Beyond that, markets have been ignoring a great deal. You've already got the highest geo political risk in fifty years. This situation in the Middle East is preciously close to

We did see a wide range of topics discussed in the vice presidential debate last night, Terry, I want to ask what stood out to you.

Well, fundamentally, you know, for markets, what markets heard is that you know, I thought was very consequential. Rather, they didn't hear it. Neither ticket, nor did neither political party wants to deal with or talk about unsustainable US fiscal debt and deficit, which is firstly as a significant markets concern.

Uh.

Secondly, it imperils the ability of the United States to continue directly in perils now the ability to continue to fund domestic programs of all kinds. And thirdly, we're now in a situation I think that which markets are slow to pick up on that debt service is now larger than anything spending on anything else, larger than defense, larger than you know, healthcare, larger than anything. And you know, great powers don't last a great deal longer in that situation.

Tina, Why are you some of your reactions to the Vice presidential debate. Obviously a lot of discussion, maybe not necessarily pointed on the fiscal policy, but we did hear a lot when it comes to the threat of tariffs from former President Trump on immigration as well.

Well of all of the things that might move the needle in the polls that we could talk about, the escalation of the Middle East conflict being one of them, the long shoreman strike, Hurricane Helena.

The VP debate does not figure. The discussion was not intended for market.

Participants, and there has been no discussion whatsoever in this campaign about the US deficit and spending.

That tells you something quite important.

But I do think there were some interesting surprises that came out of the discussion, and one of them was that we saw a less of the attack dog JD events. He was smooth in his delivery, and there was a lot of you know, what is called midwestern nice.

I don't think anybody was expecting that.

It's an interesting point that you make there, Tina, that possibly world events, so much happening in the world, could wipe this vice presidential debate off of voters' memories, potentially with just about five weeks to go before the November election. Do you see any impact from the vice presidential debate when it comes to where things stand in the race in this very tight race between Donald Trump and Kamala Harris.

Well.

I wrote before the debate that I didn't want to discount anything that might see even a tiny shift in polling or sentiment, given how tight the race is.

But is the VP debate going to register?

I mean, the assassination attempt on Donald Trump didn't register in the polls.

So I think we're.

Going to forget about this debate tomorrow or maybe even by lunchtime.

Terry, I want to bring you back in is that was this a forgettable debate? Is there's just too much going on that's going to take voters attention away.

Look from a vice presidential the candidate perspective, a forgettable debate is a good debate. Uh. You know, these these people don't want to stand out or be a distraction to their ticket, and so so at route neither candidate harmed their ticket, harmed themselves. In fact that they did, both of them did themselves credit for a variety of reasons.

Well, perhaps one thing that former President Trump might want voters to remember in the moments after the debate, Tina, is his promise now that he would vetail a federal abortion ban if it came to his desk. Do you see that moving the needle on this issue that Democrats have really tried to exploit. Only have about a minute left.

Well, that was a dramatic change in stance from President Trump, and to me, it reflects that, you know, the data is probably being shown by his campaign that he's underwater with female voters, and there is a dramatic gender gap between Democrats and Republicans and as well as between the candidates.

It is close to twenty percentage points.

But I do think this announcement is too late and most people have settled into their positions. I don't think it will bring female voters to Trump, but maybe it will ease the minds of those who are concerned most about reproductive rights should he become president. Having said that he's a very malleable candidate when it comes to his positions.

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