UN Criticizes Israel; US House Has 4th Speaker Nominee

Good morning.

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

We begin with the latest developments in Israel, as diplomatic efforts continue to try to avert a wider Middle East war. Israel's ambassador to the United Nations is calling on the head of the UN to resign. That demand came after Secretary General Antonio Guterra's speech at a Security Council meeting.

I have condemned an equivocally the horrifying and unprecedented seven October acts of terror Bayhamas in Israel. Nothing can justify the deliberate killing, injuring, and kidnapping of civilians, or the launching of rockets against civilian targets. It is important to also recognize the attacks by Amas did not happen in a vacuum. The Palestinian people have been subjected to fifty six years of suffocating occupation.

Antonio Guterrez's remarks led to a sharp rebuke from Israeli UN ambassador Galadoda on.

The UN is failing a new mister, Secretary General, have lost all morality and impartiality when you say those terrible words that these heinous attacks did not happen in a vacuum. You are tolerating terrorism.

And along with those remarks from Israel's UN ambassador, Israeli Foreign Minister Eli Cohen has now canceled a meeting with the UN Secretary General.

Well Nathan Beck.

Here.

In the US House, Republicans wound up having to elect two nominees for House Speaker back to back yesterday, and Bloomberg's Amy Morris explains from Washington.

Hours after he won the Republican Party nod for speaker. House majority whip Tom Emmer dropped his bid. While he did get a majority of votes from his fellow Republicans to become the nominee, he faced opposition from a faction that considers him to moderate, including former President Trump, who called him a rhino globalist.

We have four or five, the warriors.

The smart, and the lover Trump ally Mike Johnson of Louisiana is now the latest nominee for Speaker of the House. Republicans plan a vote on the House floor today at noon. The House cannot act on anything until a new speaker is elected. In Washington. I'm Amy Moore as Bloomberg Radio.

Okay, meye, thanks another been a couple key developments in two of the legal cases against former President Trump. Bloomberg News has learned that Mark Meadows, former White House Chief of Staff, has been granted immunity in Special Council Jack Smith's federal election interference probe. Meadows told a grand jury that he repeatedly told the former president his election fraud

I believe in and I value election integrity. If I knew then what I know now, I would have declined to represent Donald Trump.

Jenna Ellis is the third attorney and fourth defendant overall to take a plea in the case. Under her deal, she has agreed to cooperate with Fulton County prosecutors and could testify against the former president.

Well Nathan, we turned to the markets now and big tech and focus following earnings from two giants. To begin with, Microsoft and shares are out more than three and a half percent in early trading, the company posting its strung at sales increase in six quarters. We get the details from Bloomberg's Charlie Pellett.

Microsoft was bolstered by recovering cloud computing growth amid demand for new AI products that are prompting corporate customers to shift back into spending mode. Revenue in the fiscal first quarter rows thirteen percent to fifty six point five billion dollars. CEO Sancha Nadella is revamping the company's entire product suite, including office, Windows, search, and security software, to add features based on open AI technology. In New York, Charlie Pellett Bloomberg.

Radio, Okay, Charlie, thanks, And then there's Alphabet. Those shares are down six and a half percent. We get a recap of that earnings report from Bloomberg technology reporter at Ludlow in San Francisco.

ALTHOUGHLPHA bet beat top and bottom line on all of its other divisions, there was strength in search, advertising stabilization and resilience in YouTube ads as well. There's still this concern that cloud is really central to Google's future growth, and in that area of cloud it's still is a distant third behind Amazon Aws and Microsoft Azure.

Bloomberg's Ed Ludlow reports Alphabet's cloud unit sales had been affected by some customers cost cutting well, Nathan.

Big Tech earnings continue this afternoon when Meta Platforms, the owner of Facebook and Instagram, reports we get a preview with Bloomberg's Tom Busby.

Investors will be looking for a rebound in digital advertising, which may have seen a boost from its short video TikTok knockoff called Reels. Also any benefits from new products and services. After the social media giant's heavy investment in artificial intelligence, it's pushed into virtual reality technology, though expected

Okay, Tom thanks Now. Earnings out of Europe. Shares of Deutsche banker up six and a half percent. That bank plans to accelerate payouts to shareholders after higher income from its corporate bank and deposit inflows offset weaker training in the third quarter. Chief financial officer James von Molka says Deutsch is trying to rein in costs.

We're working sort of every day on cost reduction measures, which at the very least should offset the impact of inflation and also allow us to invest in the businesses with our own resources.

Deutsche Bank CFO James von Molka says revenue rose about three percent from a year earlier.

This is Bloomberg, all right, Nathan, Thanks.

It is time now for a look at some of the other stories making news around the world. For that, we're joined by Bloomberg's Amy Morris.

Amy.

Good morning, Good morning Karen. Former President Donald Trump and his attorney Michael Cohen where both in a Manhattan courtroom for Trump's civil fraud trial. Cohen was Trump's longtime attorney before their relationship turned bitter. He testified against Donald Trump.

This is not about Donald Trump versus Michael Cohen or Michael Cohen versus Donald Trump. This is about accountability.

New York State Attorney General Letitia James is accusing Trump of overvaluing his properties to get better loan deals. Trump says the case is politically motivated. Forty one states and the District of Columbia have joined a lawsuit against Meta. The social media giant is accused of deliberately designing features for Facebook and Instagram that get kids and teenagers hooked.

The focus is really on how Meta has designed its products to be as addicting as possible.

The lawsuits are the result of a year's long, sprawling investigation and to claims that Meta contributes to mental health issues among young people. President Biden will be hosting Australia's Prime Minister Anthony Albazini on Wednesday today, with a variety of tech issues on the table. Bloomberg's Nancy Lions as a preview.

White House National Security Spokesman John Kirby says some of the topics include artificial intelligence, clean energy, critical minerals, as well as a new space agreement. President's looking forward to the state visit.

There is an awful lot on the plate with this important ally and key partner in the region.

Kirby says. They'll also talk about the new Aucus Trilateral Security Pact between Australia, the United Kingdom and the US. Some have complained about the slow implementation of that pact. In Washington, Nancy Lions Bloomberg Radio.

Category five Hurricane Otis has made landfall near Acapulco, Mexico early this morning. Maximum sustained winds are estimated to be one hundred and sixty five miles per hour. Forecaster is one of a nightmare scenario as the storm threatens catastrophic damage. Alkapulco is home to roughly eight hundred thousand people, and the World Series is set Texas Rangers versus the Arizona Diamondbacks. Global news twenty four hours a day and whenever you

All right, Amy, thank you well. We do bring you news throughout the day here on Bloomberg Radio Now. You can get the latest news on demand whenever you want it. Subscribe to Bloomberg News Now to get the latest headlines at the click of a button. Get informed on your schedule. You can listen and subscribe to Bloomberg News Now on the Bloomberg Business app, Bloomberg dot com plus Apple, Spotify, and anywhere else you get your podcasts. And it's time

They've been playing the World Series for one hundred and twenty years This year's Fall Classic begins on Friday, and it's perhaps the most unlikeliest matchup in World Series history. It's the Texas Rangers against the Arizona Diamondbacks. No one expected this. The Diamondbacks only won eighty four games. They only got into the playoffs because MLB expanded the postseason

When it finally happened and I saw the flaball go up, it was a pree four feeling. We're adrenaline junkies. You know, it's in and out of that of that moment, and when it hits a high and you feel it, it's a flush through your body and it gets no better.

Corbyn Carroll, the rookie afield the three hits, two runs, two RBIs The Phillies only had eleven hits over the last two games of the series. They had no hits over the last four innings last night. Also from Baseball, Bob Melvin leaving the Pandres. He's the new manager of the Giants. He's a San Francisco native who managed in the Bay Area with Oakland for a decade. Opening Night in the end, Denver Nuggets won the championship last year. Opened up beating the Lakers one nineteen one oh seven

From coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg Business app in Bloomberg dot Com. This is Bloomberg Daybreak.

Good morning. I'm Nathan Hager. It has now been three weeks since the House voted out Kevin McCarthy is its speaker. Today, Republicans are putting up their fourth nominee, helping a Trump ally, Mike Johnson of Louisiana, breaks the deadlock that has paralyzed Congress. That's as the former president faces new pressure in a couple of the half dozen legal cases against him, lots to get to this morning with Greg Valier, Chief US Policy stre just at AGF Investments, and Greg is with me.

Now.

I'm reminded of that old saying about trying the same thing over and over again and expecting a different result. What should we expect from this latest nominee on the House floor?

Greg, Yeah, the definition of insanity, Nathan. They keep trying this. This fellow Mike Johnson, who nobody's ever heard of, has a chance. He's popular within the party. He could come close, but he can only afford to lose four or five votes, and he's an uphill battle. This could drag on, and it's a serious story. If you want to see aid for Israel, or aid for Ukraine or something for the US southern border, everything's frozen right now.

What gives Mike Johnson the chance that Tom Emmer, Steve Scalise, Jim Jordan didn't have?

Well in a word or two, Donald Trump, I think Trump would probably support Johnson. Trump very outspoken against Tom Emmer of Minnesota. In fact, Trump boasted yesterday that I killed that nomination. Well, it sounds like Trump has a veto power over House Republicans. But Trump is a supporter of Mike Johnson.

Trump was also a supporter of Jim Jordan and has been failed. So why could Mike Johnson do better this time?

I think he might have more a wider support. But I've got to tell you there's one crazy wild card that emerged late yesterday, and that would be to reinstate Kevin McCarthy as speaker and make Jim Jordan assistant speaker. I suppose crazier things have happened, but people were talking about that late yesterday.

Before we get to that possibility, we do have to get through an expected floor vote for Mike Johnson. As you mentioned, he is a Trump ally, and we've also been reporting in the past that he was a part of the effort to return the twenty twenty election result. What would a speaker Mike Johnson mean for the House of Representatives.

Well, it polarizes things, obviously, to have somebody who is a denier that Biden is actually a legitimate president. I think that doesn't help you continue to alienate the Democrats who are not interested in helping Republicans. But I suspect in the final analysis, involvement of some Democrats as a possibility.

Okay, what about the possibility of government shut down? The aid requests that President Biden has been looking for, not just for foreign aid, but this report now from the Washington Post that he's preparing a fifty billion dollars domestic aid request to Congress.

Yeah, there's a lot of stake here. First of all, aid to Israel and Ukraine, aid for the US border, a budget which has a deadline of November seventeenth, and now this news story that you cite the Washington Post. You're not going to be able to get any of this stuff done without a speaker.

You mentioned that President Trump may have veto power in the House. He's facing new legal pressure now with this new development that Mark Meadows, the former White House chief of staff, has been granted immunity in the federal twenty twenty election case. This seems like a pretty significant development.

Is it?

It?

Sure is, Nathan. The word of the week is flip flipping. Are we going to see even more former Trump aids flip and decide they're going to cooperate with investigators? We're getting to a point where there's going to be an avalanche of testimony against Trump. This has been a very difficult week for him.

How significant could Mark Meadows testimony in particular be in a special Council trial over the twenty twenty election.

It's huge. I mean, he knows where all the bodies are buried, he knows what happened. He also may continue to lead a domino effect where others cooperate, maybe even Rudy Giuliani. So I think that Trump is facing his greatest challenge and can't rule out Trump going to jail.

Wow, that's a really significant statement just there. But of course, in our last thirty seconds, the former president has managed to turn all these legal battles to his political advantage. Can he continue to do so?

He's a master at delaying and delaying and delaying. He could delay even further. But I do think this is an avalanche of testimony that is not going to help him.

This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond.

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Listen coast to coast on the Bloomberg Business app, serious XM Channel one nineteen, the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager and.

I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak