US Strikes Syria; Search For Gunman in Maine Shooting; Taylor Swift Billionaire Status
Your morning briefing. The news you need in just 15 minutes.
On today's podcast:
1) US forces conducted strikes on two facilities in eastern Syria it believes were used by Iran’s Islamic Revolutionary Guard Corps and affiliated groups, in response to attacks on American troops in the region.
2) Taylor Swift’s Eras tour has generated as much money as the economies of small countries. The movie version is ruling the box office. Her new recording of a nine-year-old album, 1989, is expected to be one of the hottest-selling records of the year.
3) A massive manhunt is underway in Maine for a suspect in a mass shooting that left 18 people dead and 13 injured at a bowling alley and a restaurant in Lewiston, the state’s second-largest city.
4) Amazon Chief Executive Officer Andy Jassy gave investors much of what they wanted this earnings season: robust sales and profit growth along with a hint that the cloud division earnings machine is regaining momentum.
5) The Buffalo Bills beat the Tampa Bay Buccaneers in Thursday Night Football
Full Transcript:
00:02Speaker 1
Good morning. I'm Nathan Hager and I'm Amy Morris. Here are the stories we're following today. Amy, we begin with breaking developments in the war in the Middle East. The US has now conducted military strikes, and we get more from Bloomberg's Rosalind mathieson the US has struck two targets, they say inside Syria. They say they were aiming at Iran's Islamic Revolutionary Guard and basically a warning again to some of these proxy groups that are operating in the region potential on behalf of Iran, because what we've seen is an escalation the pattern of attacks or targeting of US military assets in the region. Bloomberg's Rosalind Mathison says Defense Secretary Lloyd Austin is characterized in the US strikes as separate and distinct from the Israel Hamas war, and Nathan the strikes come as Iran's born minister warned the US won't be spared if the war between Israel and Hamas spreads. Born Minister Hossain Amir abdo Lahi and delivered the threat in a speech to the United Nations General Assembly. We do not welcome to expansion of the war in the region, but are you all If the genocide in Gasse continues, they will not be spared from this fire. The comments by Iran's foreign minister comes as Israel says it sent troops on a limited raid into Gaza for the second straight night. Now amy to the latest on the deadly mass shooting in Maine, an intense search continues for Robert Card, the forty year old Army reservist accused of killing eighteen people inside a bowling alley and bar in the city of Lewiston. The city's mayor, Carl Shalen, is telling people to stay off the streets. This is the time for action, solidarity and support. Please take note the shelter and place order issued by the Lewiston Police Department remains in effect. Please stay at home and be safe. Lewiston Mayor Carl Shalen says much of the focus has been one of cards relatives' homes in the rural town of Boden f Behind. Other agents surrounded the property, ordering anyone in Scientist surrender after several hours, though state police said it was not clear if anyone had been there. The newly anointed Speaker of the House is commenting about the latest deadly shooting. Mike Johnson does not think it's a gun problem the end of the day, it's the problem is the human heart. It's not guns, not the weapons. At the end of the day, we have to protect the right of the citizens to protect themselves and that's the Second Amendment and that's why our party sends show strongly for that. Speaker Johnson made the comments in an interview with Fox's Sean Hennity and said that now is not the time for new gun laws. I Meanwhile, Amy the House passed its first major piece of legislation since Johnson became Speaker, and it flies in the face of President Biden's emphasis on energy efficiency. Bloomberg zed Baxter has the story. It cuts into the Inflation Reduction Act, which incentivized homeowners to switch to more energy efficient appliances, and into money that helps stage craft more stringent building energy codes. The effect of this which strip billions of dollars put aside for consumer rebates. Speaker Mike Johnson in the past has criticized the spending on climate and clean energy measures as green energy slush funds. It's not expected to pass the Senate or get a Biden's signature ad Baxter Bloomberg Radio, Thank you ed Now. An update on the trial of Sam Bankman Freed. The FDx founder, spent almost three hours trying to convince a judge to allow him to testify to a jury about the role lawyers played in the collapse of the crypto exchange. Bloomberg's Bob van Vories is covering the case in Lower Manhattan. He spent the entire afternoon on the spand but he was previewing testimony that he wants to give relating to advice that he got from lawyers. So Judge Kaplan is listened to the testimony. It's going to rule in the morning. What the jury gets to hear. They got sent home after lunch. Bloomberg's Bob van Voris says, Bank and Freed's team is trying to show many of the transactions are the subject of criminal charges conducted in the full view of lawyers. Turning to markets, Amy Watch and shares of Amazon, they are hired by more than five percent in early trading. The company gave investors a lot of what they wanted this earning season, robust sales and profit growth, along with a hint that the cloud division earnings machine is regaining momentum. Matthew Bloxham is a tech analyst for Bloomberg Intelligence. They are the leader in cloud, so there's a huge number of corporates who already use them for cloud, and those corporates are all scrambling to get into the genes of AI space, so they're kind of looking to train models and use them in applications. Bloomberg Intelligence, as Matt Bloxham says, cloud unit sales increase twelve percent. More than twenty three billion dollars. Shares of Intel also on the move, up nearly eight percent. The chip maker is predicting a return to sales growth in the fourth quarter. Intel says it's being fueled by an improving personal computer market and a more competitive product line. Turning to the economy, Amy Janet Yellen says the surgeon treasury yields is tied to the strength of the economy rather than the widening fiscal deficit. We spoke with the Treasury Secretary in Washington. We're seeing yields go up in most advanced countries. Part of the increase in yields, I think is simply a reflection of the strength of the economy the notion that interest rates will be higher for longer. Secretary Yellen says the trends that had produced low levels for yields before the pandemic are still there. For the full conversation, head to our Bloomberg Talks podcast feed find it wherever you get your podcasts. And right now we find the tenure treasury yield at four point eight six percent, the two years at five point zero four, and futures are surging. This morning, this is Bloomberg Time now to take a look at some of the other stories making news in New York and around the world. For that, I'm joined by Bloomberg's Michael Barr. Good morning, Michael, Good morning, Nathan. Representative George Santos's scheduled to be a rain this morning on more charges filed earlier this month. According to prosecutor, Santos allegedly stole identities and made purchases on the credit cards of his donors. Meanwhile, there is a push from New York Republicans to expel Santos from Congress. Representative Anthony Desposito says Santos is not fit to serve as constituents. As a United States representative people have seen over the last ten months what a fraud he is. I mean, you know, you read either indictment, there's a clear outline that lays out the fabrications, the lies, the manipulation of donors and others that he has committed over the last year or longer. Audio courtesy of Forbes. D Esposito's resolution would need two thirds of the House to expel the Long Island Congressman. Meanwhile, Santos, who says he will not step down, responded on social media saying that he is entitled to due process and not a predetermined outcome as some are seeking. The NYPD is on high alerts in case the suspected main mass shooter tries to enter the tri state area. While there is no evidence that suspect Robert Card is coming to New York, it comes at a time when already counter terrorism officers are on the streets because of the crisis in the Middle East, and MYPD Commissioner Rebecca Winer, we don't see any neccess to New York City with this incident, tragic as it was, but we've been saying this a lot over the last couple of weeks, and we always do we urge all New Yorkers to continue to go about your business, but to remain alert to your surroundings. Commissioner Winer join Mayor Eric Adams at a news conference to discuss safety in the city. Amid the active search for card There will be more than one hundred car free streets to keep trick or treaters safe in New York City this Halloween. The Trick or Streets Initiative is being expanded to give access to pedestrians for safe spaces across the five boroughs. The initiative that kicked off October fourteenth at fifteen locations, where we expanded starting tomorrow, Global news twenty four hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr. This is Bloomberg Natha Tricker Streets. That's a great idea. Thank you, Michael. Now great news because we do bring you news throughout the day here on Bloomberg Radio. But 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, 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. Time now for the Bloomberg Sports Update, brought to you by tri State Outy. Good morning, John stash Hour, Good morning. Eighth in this world series with two unlikely teams begins tonight. Both Arizona and Texas lost over one hundred games just two years ago. Both snuck into the postseason as a wild card, but are nine and three allthough. The Rangers are one and three at home eight no on the road. Ain't arly. They start Nathan Evaldi, who's four and oh in the postseason. The Diamondbacks start Zach Gallon. The Bills are four and oh. In Buffalo, they never trailed, beat the Bucks twenty four to eighteen. Josh Allen threw for two touchdowns ran for another. The Jets and Giants first played each other in nineteen seventy Sunday's game only the fifteenth regular season meeting ever. Giants lead the series eight to six. Jets have won the last two. Last Giants win was twenty eleven. They won the Super Bowl that year. Here's Jets coach Rob Sala. I'm excited about You said it's once every four years. Maybe there's a crossover now at the seventeenth game. But you know, I think it's really cool for the fans. I think it's great for sports talk radio and all the different newspaper outlets and all that. But you know, it's a championship opportunity. You know, a lot of respect for them. They've got a tremendous history of Salla's backup running back is veteran Dalvin Cook plays behind Breeze Hall. Cook says he's frustrated being the backup, might want a trade before next week's deadline. A five game road trip for the Rangers. They won the first three and of a lot only two goals the shutout for Jonathan Quick and Edmonton. Rangers won three nothing. Islanders beat Atawa three two. Damian Lillard's first game for the Bucks in Milwaukee port in thirty nine points and a one point win over the Sixers. The Lakers, bree Phoenix Nixon Nets began with losses at home. They're on the road tonight, Nicks in Atlanta. Nets are in Dallas. They'll face the X next. Tyler RD Johns, Dashawl Bloomberg Sports Nathan. All right, John, Thanks. Bloomberg Sports is brought to you by Audi. Don't let someone else drive off in the Audi model you've always wanted. Visit your local Tri state AUDI dealer to get behind the wheel of yours today, or visit audioffers dot com for more information. A debrief on the Israel Hamas War. Next, we're gonna check in with Bloomberg's Israel Bureau chief Ethan Brunner in Tel Aviv, from coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Syrias XAM, the Bloomberg Business app in Bloomberg dot com. This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. The world is watching for the next phase in the Israel Hamas War. Israel has carried out ground rates in Gaza for a second straight night, and now the US is targeting are striking targets in Syria that it says have been used by Iran and its proxy groups for the latest We are joined by Bloomberg's Israel Bureau chief Ethan Bronner in Tel Aviv. Ethan, good morning. What more can we say now about this latest military activity, not just by Israel but now apparently the United States. Yes, well, I mean, what we can say is that these are a small piece of evidence of the risk of a spreading conflict, of the fact that Iranian proxies around the region, not just Hamas in Gaza, are at work, and that a combined force of Israel in the United States seeking to sort of keep them in their place, as it were, as opposed to letting it get truly out of hand. The Americans have absolutely heightened their military profile in the region. The Eisenhower is on the way to the Eastern metag should be here by Monday. There's a whole bunch of Patriot missiles, a whole bunch of troops as well, and Israel is trying to decide what it's going to do in Gaza. I think it's become an increasingly anguished decision because of those two hundred plus hostages, because of the concern that victory is hard to define, and because even though people are humiliated and furious about what happened in October seventh, the question of how many casualties Israel truly wants to take in this far from clear. And to that point, Ethan there has to be some thinking on the Israeli part about how to continue to keep Allied support given how fierce the response has been on the Israeli side following that October seventh attack by Hamas. Look, I think that's true, I mean absolutely. I wrote a story a couple of days ago about the sense that Israel has that it is increasingly alone in its view of the legitimacy of what it's doing. It's not alone alone, and that the United States has been a standing shoulder or shoulder with it. The Europeans have come through and have said, we feel your pain, we understand, we agree AMAS is a terrible organization needs to be dismantled. But what does that really mean? And at what cost? And what about these seven thousand dead people in Gaza? And I think even the United States feels a way, and even people in Israel to some extent are beginning to ask what does it mean to do? What is the right thing to do? And I don't think they've figured it out. There is a sense here that unless AMAS is ultimately dismantled, that that life here will not be tolerable, that people will not stay, people not live along the border, and that is not something that's acceptable. But what does it mean on what time and what time frame Israel needs to do this, I think is the key. In addition to the concern that Hisbella and other Iranian back groups could enter the frame and at the same time, Ethan, we've heard from Israel that the strikes that have been carried out have continued to take out HUMAS leadership. I think one of the latest reports was that a deputy director of HUMAS has been killed in one of the latest strikes. Is there a sense that taking out the leadership is achieving some of the objectives that Israel is setting out here? Well, I mean, I don't know that we're there yet. That's absolutely Israel's contention. And they've set up, in fact, within the security system a kind of a squad that's going to take it upon itself over the next year or two or three to take guys out who've led HUMAS, whether they're in Gaza or in Katar, or in Lebanon or in Turkey. There's a kind of assassination squad that's been set up, and they're also going after them inside. Does it make a difference, It must make a difference, But you know, they're spread around. There are a lot of them, and it's very hard to the impression one gets at the moment is that it's sort of middle management that they've been able to get, not the top guys. So I don't know how big a difference it's making. Appreciate you coming back on with us, Ethan, and keeping us up to speed on all the developments that have been happening in the Israel Humas War now with these US strikes into Syria as well. Ethan Browner are Israel bureau chief for Bloomberg News, joining us this morning from Tel Aviv. And now we want to turn to a conversation with Treasury Secretary Janet Yellen. She joined Bloomberg Washington Bureau chief Peggy Collins for a wide ranging conversation after we saw a third quarter GDP in the US grow at its fastest pace in nearly two years. Secretary Yellen talked about that blowout economic figure as well as rising bond yields and geopolitical risks. Let's go to part of that discussion. Now, it's a good strong number and it shows an economy that's doing very well. Let's remember it is just one quarter's number, and I'm not expecting a growth at that pace to continue. But we do have good, solid growth. You know, probably the year will come in close to two and a half. I wouldn't be surprised if we see that we have solid job creation, a low unemployment rate, increased engagement in the labor force, inflation's coming down, and you don't really see any sign of recession here. I have to say, I've been saying for a long time that I believed there was a path to bring inflation down in the context of a strong labor market. Frankly, it's only it's about a year ago since I believe a Bloomberg model predicted that by October of twenty twenty three. Now, namely that you saw at the odds of recession at one hundred percent. I don't think we have that. You know, what we have looks like is soft landing with very good outcomes for the US economy. So I think there's a lot to be pleased to beat. And you see good strong consumer spending. Consumers still have substantial wealth. I think it's supporting good strong spending and the economy is doing well, and I think US growth is making a contribution to stronger global outcomes as well. So I want to ask you a little bit about the rise in yields that we've seen. We've seen yield surging over the last few weeks. The ten year treasury rose above five percent earlier this week. What's your view on what is driving that surgeon yields and how much of it is connected to investors' concerns about the US deficit. Well, I don't think much of it is connected to that. This is a global phenomenon in advanced countries where seeing yields go up in most advanced countries of the world largely, I think it's a reflection of the resilience that people are seeing in the US economy, that we're not having a recession, that consumer spending and demand continue to be strong, The economy is continuing continuing to show tremendous robustness, and that suggests that interest rates are likely to stay higher for longer. And so part of the increase in yields I think is simply a reflection of the strength of the economy, the notion that interest rates will be higher for longer. Now, whether or not that's really true if we look at five or ten years, what are interest rates likely to do? Honestly, for a very long time, we've felt that interest rates over decades had been coming down real interest rates, and there were deep structural reasons for that, in part relating to demographics and those underlying trends. They're still there, they're still in force. So I think it's perfectly possible that we will see longer term yields come down, but nobody really knows for sure. But I see the higher yields as certainly importantly a reflection for stronger economy. I know you took a trip to China in big to Beijing this summer. You've been talking about how our policy should really be around de risking or diversifying rather than decoupling. But what do you think is the current status of that. Do you think the Chinese have adopted that and feel like they can trust us on that front, or do you think they still really think that we're in a competition with them first and foremost. So, I mean we've articulated a strategy. As you said, it involves de risking in some areas where we're overly dependent on China, and clean energy is a good example. We also intend to focus on national security. That's an area that we're not willing to compromise on, and so we have We do have export controls. We continue to review them with We're working on a set of restrictions on outbound investment to China. We've discussed this with them and put out a proposal that's in the public domain. I think comments just closed on it. But our objective there is to target what we do as narrowly as possible so that it really focuses on national security, that it is not an intention in that to harm the prospects of Chinese economic development and the welfare of the Chinese people. With the Israel Hamas war happening in the Middle East, I think there's a concern by some that the war could spread or expand to broader in the region. I know that that's not your base case, but if that was to happen, could you walk us through your wrist scenario for what that might mean to the global economy. My focus is, I look now at what's happening to the Middle East. Really is the tragedy, the human tragedy that's taking place with the Israelis have suffered, and of course we're worried about casualties in Gaza as Israel pursues its war against Tamas. So far, I would say we've not yet seen much that has global consequences. What could happen if the war expands. Of course, there could be more meaningful consequences, but I think it's premature to speculate against about those, and I think our focus should be keeping this contained and not spreading. And that was the Secretary of the Department of the Treasury, Janet Yellen, speaking with Bloomberg's Peggy Collins from our Washington newsroom. You could hear that entire conversation on the Bloomberg Talks podcast. Download the show in all of our high profile discussions wherever you get your podcasts. Finally, amy more proof that the Taylor Swift era is alive and well. Taylor Swift's eras tours generated as much money as the economies of small countries. The movie version is ruling the box office. New recording of a nine year old album, nineteen eighty nine, just dropped at midnight tonight and is expected to be one of the hottest selling records of the year. Now Taylor Swift's net worth has catapulted her past the billion dollar mark. The calculation by Bloomberg News takes into account the following, the estimated value of Taylor Swift's music catalog and her five homes, as well as earnings from streaming deals, music sales, concert tickets, and merchandise. This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed by six am Eastern each morning, on Apple, Spotify, and anywhere else you get your podcasts. You can also listen live each morning starting at five am Wall Street time on Bloomberg eleven three to zero in New York, Bloomberg ninety nine to one in Washington, Bloomberg one oh six to one in Boston, and Bloomberg ninety sixty in San Francisco. Our flagship New York station is also available on your Amazon Alexa devices. Plus 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 Amy Morris. Join us again tomorrow morning for all the news you need to start your day Right here on Bloomberg day Break
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Good morning. 0:00:03.080 --> 0:00:06.040 I'm Nathan Hager and I'm Amy Morris. Here are the 0:00:06.080 --> 0:00:07.680 stories we're following today. 0:00:07.960 --> 0:00:10.320 Amy, we begin with breaking developments in the war in 0:00:10.360 --> 0:00:13.800 the Middle East. The US has now conducted military strikes, 0:00:13.840 --> 0:00:16.640 and we get more from Bloomberg's Rosalind mathieson. 0:00:17.000 --> 0:00:21.320 The US has struck two targets, they say inside Syria. 0:00:21.520 --> 0:00:26.080 They say they were aiming at Iran's Islamic Revolutionary Guard 0:00:26.200 --> 0:00:29.480 and basically a warning again to some of these proxy 0:00:29.600 --> 0:00:33.240 groups that are operating in the region potential on behalf 0:00:33.400 --> 0:00:36.800 of Iran, because what we've seen is an escalation the 0:00:36.840 --> 0:00:41.080 pattern of attacks or targeting of US military assets in 0:00:41.159 --> 0:00:41.680 the region. 0:00:42.159 --> 0:00:46.279 Bloomberg's Rosalind Mathison says Defense Secretary Lloyd Austin is characterized 0:00:46.280 --> 0:00:48.760 in the US strikes as separate and distinct from the 0:00:48.800 --> 0:00:50.040 Israel Hamas war. 0:00:50.240 --> 0:00:53.240 And Nathan the strikes come as Iran's born minister warned 0:00:53.320 --> 0:00:55.880 the US won't be spared if the war between Israel 0:00:55.880 --> 0:01:00.040 and Hamas spreads. Born Minister Hossain Amir abdo Lahi and 0:01:00.680 --> 0:01:03.320 delivered the threat in a speech to the United Nations 0:01:03.320 --> 0:01:04.120 General Assembly. 0:01:04.440 --> 0:01:08.440 We do not welcome to expansion of the war in 0:01:08.480 --> 0:01:13.560 the region, but are you all If the genocide in 0:01:13.640 --> 0:01:18.600 Gasse continues, they will not be spared from this fire. 0:01:19.319 --> 0:01:22.840 The comments by Iran's foreign minister comes as Israel says 0:01:22.880 --> 0:01:25.480 it sent troops on a limited raid into Gaza for 0:01:25.520 --> 0:01:26.560 the second straight night. 0:01:26.880 --> 0:01:29.280 Now amy to the latest on the deadly mass shooting 0:01:29.360 --> 0:01:32.959 in Maine, an intense search continues for Robert Card, the 0:01:33.040 --> 0:01:36.319 forty year old Army reservist accused of killing eighteen people 0:01:36.360 --> 0:01:39.120 inside a bowling alley and bar in the city of Lewiston. 0:01:39.480 --> 0:01:42.040 The city's mayor, Carl Shalen, is telling people to stay 0:01:42.040 --> 0:01:42.840 off the streets. 0:01:43.120 --> 0:01:47.760 This is the time for action, solidarity and support. Please 0:01:47.800 --> 0:01:51.040 take note the shelter and place order issued by the 0:01:51.080 --> 0:01:55.440 Lewiston Police Department remains in effect. Please stay at home 0:01:55.760 --> 0:01:56.720 and be safe. 0:01:57.200 --> 0:01:59.600 Lewiston Mayor Carl Shalen says much of the focus has 0:01:59.640 --> 0:02:02.320 been one of cards relatives' homes in the rural town 0:02:02.360 --> 0:02:05.920 of Boden f Behind. Other agents surrounded the property, ordering 0:02:05.960 --> 0:02:09.480 anyone in Scientist surrender after several hours, though state police 0:02:09.480 --> 0:02:11.760 said it was not clear if anyone had been there. 0:02:12.440 --> 0:02:15.440 The newly anointed Speaker of the House is commenting about 0:02:15.480 --> 0:02:19.239 the latest deadly shooting. Mike Johnson does not think it's 0:02:19.240 --> 0:02:21.320 a gun problem the end. 0:02:21.200 --> 0:02:23.400 Of the day, it's the problem is the human heart. 0:02:23.560 --> 0:02:26.120 It's not guns, not the weapons. At the end of 0:02:26.160 --> 0:02:28.080 the day, we have to protect the right of the 0:02:28.080 --> 0:02:30.880 citizens to protect themselves and that's the Second Amendment and 0:02:30.919 --> 0:02:33.840 that's why our party sends show strongly for that. 0:02:34.520 --> 0:02:37.280 Speaker Johnson made the comments in an interview with Fox's 0:02:37.400 --> 0:02:39.839 Sean Hennity and said that now is not the time 0:02:39.880 --> 0:02:40.880 for new gun laws. 0:02:40.960 --> 0:02:43.440 I Meanwhile, Amy the House passed its first major piece 0:02:43.440 --> 0:02:46.680 of legislation since Johnson became Speaker, and it flies in 0:02:46.720 --> 0:02:50.639 the face of President Biden's emphasis on energy efficiency. Bloomberg 0:02:50.720 --> 0:02:52.120 zed Baxter has the story. 0:02:52.760 --> 0:02:56.520 It cuts into the Inflation Reduction Act, which incentivized homeowners 0:02:56.520 --> 0:03:00.720 to switch to more energy efficient appliances, and into money 0:03:00.880 --> 0:03:04.800 that helps stage craft more stringent building energy codes. The 0:03:04.840 --> 0:03:07.720 effect of this which strip billions of dollars put aside 0:03:07.800 --> 0:03:11.160 for consumer rebates. Speaker Mike Johnson in the past has 0:03:11.200 --> 0:03:14.640 criticized the spending on climate and clean energy measures as 0:03:14.960 --> 0:03:19.320 green energy slush funds. It's not expected to pass the 0:03:19.360 --> 0:03:23.920 Senate or get a Biden's signature ad Baxter Bloomberg Radio, Thank. 0:03:23.760 --> 0:03:26.120 You ed Now. An update on the trial of Sam 0:03:26.160 --> 0:03:29.920 Bankman Freed. The FDx founder, spent almost three hours trying 0:03:29.960 --> 0:03:32.320 to convince a judge to allow him to testify to 0:03:32.400 --> 0:03:35.440 a jury about the role lawyers played in the collapse 0:03:35.480 --> 0:03:39.320 of the crypto exchange. Bloomberg's Bob van Vories is covering 0:03:39.360 --> 0:03:40.720 the case in Lower Manhattan. 0:03:40.840 --> 0:03:43.880 He spent the entire afternoon on the spand but he 0:03:44.000 --> 0:03:47.840 was previewing testimony that he wants to give relating to 0:03:47.920 --> 0:03:51.680 advice that he got from lawyers. So Judge Kaplan is 0:03:51.800 --> 0:03:54.040 listened to the testimony. It's going to rule in the morning. 0:03:54.600 --> 0:03:56.839 What the jury gets to hear. They got sent home 0:03:56.920 --> 0:03:57.560 after lunch. 0:03:58.240 --> 0:04:00.720 Bloomberg's Bob van Voris says, Bank and Freed's team is 0:04:00.720 --> 0:04:03.120 trying to show many of the transactions are the subject 0:04:03.160 --> 0:04:06.120 of criminal charges conducted in the full view of lawyers. 0:04:06.240 --> 0:04:08.960 Turning to markets, Amy Watch and shares of Amazon, they 0:04:08.960 --> 0:04:11.400 are hired by more than five percent in early trading. 0:04:11.400 --> 0:04:13.480 The company gave investors a lot of what they wanted 0:04:13.520 --> 0:04:16.560 this earning season, robust sales and profit growth, along with 0:04:16.600 --> 0:04:20.080 a hint that the cloud division earnings machine is regaining momentum. 0:04:20.160 --> 0:04:22.880 Matthew Bloxham is a tech analyst for Bloomberg Intelligence. 0:04:22.960 --> 0:04:24.880 They are the leader in cloud, so there's a huge 0:04:24.920 --> 0:04:26.719 number of corporates who already use them for cloud, and 0:04:26.760 --> 0:04:30.320 those corporates are all scrambling to get into the genes 0:04:30.400 --> 0:04:32.400 of AI space, so they're kind of looking to train 0:04:32.520 --> 0:04:34.480 models and use them in applications. 0:04:34.520 --> 0:04:37.760 Bloomberg Intelligence, as Matt Bloxham says, cloud unit sales increase 0:04:37.839 --> 0:04:40.359 twelve percent. More than twenty three billion dollars. 0:04:40.760 --> 0:04:43.720 Shares of Intel also on the move, up nearly eight percent. 0:04:43.760 --> 0:04:46.240 The chip maker is predicting a return to sales growth 0:04:46.279 --> 0:04:49.200 in the fourth quarter. Intel says it's being fueled by 0:04:49.240 --> 0:04:53.440 an improving personal computer market and a more competitive product line. 0:04:53.480 --> 0:04:56.440 Turning to the economy, Amy Janet Yellen says the surgeon 0:04:56.560 --> 0:04:59.120 treasury yields is tied to the strength of the economy 0:04:59.240 --> 0:05:02.320 rather than the widening fiscal deficit. We spoke with the 0:05:02.320 --> 0:05:04.160 Treasury Secretary in Washington. 0:05:04.560 --> 0:05:09.720 We're seeing yields go up in most advanced countries. Part 0:05:09.720 --> 0:05:14.040 of the increase in yields, I think is simply a 0:05:14.080 --> 0:05:17.719 reflection of the strength of the economy the notion that 0:05:17.839 --> 0:05:20.160 interest rates will be higher for longer. 0:05:20.320 --> 0:05:23.120 Secretary Yellen says the trends that had produced low levels 0:05:23.120 --> 0:05:25.960 for yields before the pandemic are still there. For the 0:05:25.960 --> 0:05:30.040 full conversation, head to our Bloomberg Talks podcast feed find 0:05:30.040 --> 0:05:32.200 it wherever you get your podcasts. And right now we 0:05:32.240 --> 0:05:36.080 find the tenure treasury yield at four point eight six percent, 0:05:36.120 --> 0:05:39.080 the two years at five point zero four, and futures 0:05:39.120 --> 0:05:48.320 are surging. This morning, this is Bloomberg Time now to 0:05:48.320 --> 0:05:50.040 take a look at some of the other stories making 0:05:50.080 --> 0:05:51.960 news in New York and around the world. For that, 0:05:52.240 --> 0:05:53.800 I'm joined by Bloomberg's Michael Barr. 0:05:53.880 --> 0:05:57.920 Good morning, Michael, Good morning, Nathan. Representative George Santos's scheduled 0:05:57.960 --> 0:06:01.160 to be a rain this morning on more charges filed 0:06:01.200 --> 0:06:05.719 earlier this month. According to prosecutor, Santos allegedly stole identities 0:06:05.760 --> 0:06:09.640 and made purchases on the credit cards of his donors. Meanwhile, 0:06:09.680 --> 0:06:12.200 there is a push from New York Republicans to expel 0:06:12.279 --> 0:06:17.520 Santos from Congress. Representative Anthony Desposito says Santos is not 0:06:17.640 --> 0:06:22.120 fit to serve as constituents. As a United States representative. 0:06:22.680 --> 0:06:26.520 People have seen over the last ten months what a 0:06:26.600 --> 0:06:30.640 fraud he is. I mean, you know, you read either indictment, 0:06:30.680 --> 0:06:37.040 there's a clear outline that lays out the fabrications, the lies, 0:06:38.720 --> 0:06:42.960 the manipulation of donors and others that he has committed 0:06:42.960 --> 0:06:45.720 over the last year or longer. 0:06:45.839 --> 0:06:49.480 Audio courtesy of Forbes. D Esposito's resolution would need two 0:06:49.520 --> 0:06:53.440 thirds of the House to expel the Long Island Congressman. Meanwhile, Santos, 0:06:53.480 --> 0:06:56.080 who says he will not step down, responded on social 0:06:56.120 --> 0:06:59.359 media saying that he is entitled to due process and 0:06:59.480 --> 0:07:03.240 not a predetermined outcome as some are seeking. The NYPD 0:07:03.440 --> 0:07:07.000 is on high alerts in case the suspected main mass 0:07:07.000 --> 0:07:10.240 shooter tries to enter the tri state area. While there 0:07:10.280 --> 0:07:13.480 is no evidence that suspect Robert Card is coming to 0:07:13.560 --> 0:07:16.360 New York, it comes at a time when already counter 0:07:16.560 --> 0:07:19.520 terrorism officers are on the streets because of the crisis 0:07:19.560 --> 0:07:22.880 in the Middle East, and MYPD Commissioner Rebecca Winer, we 0:07:22.920 --> 0:07:23.520 don't see. 0:07:23.320 --> 0:07:26.200 Any neccess to New York City with this incident, tragic 0:07:26.280 --> 0:07:28.800 as it was, but we've been saying this a lot 0:07:28.840 --> 0:07:31.080 over the last couple of weeks, and we always do 0:07:31.880 --> 0:07:34.440 we urge all New Yorkers to continue to go about 0:07:34.440 --> 0:07:37.440 your business, but to remain alert to your surroundings. 0:07:37.640 --> 0:07:41.120 Commissioner Winer join Mayor Eric Adams at a news conference 0:07:41.160 --> 0:07:44.040 to discuss safety in the city. Amid the active search 0:07:44.080 --> 0:07:46.920 for card There will be more than one hundred car 0:07:47.040 --> 0:07:49.920 free streets to keep trick or treaters safe in New 0:07:50.000 --> 0:07:54.560 York City this Halloween. The Trick or Streets Initiative is 0:07:54.640 --> 0:07:58.520 being expanded to give access to pedestrians for safe spaces 0:07:58.560 --> 0:08:02.160 across the five boroughs. The initiative that kicked off October 0:08:02.200 --> 0:08:06.440 fourteenth at fifteen locations, where we expanded starting tomorrow, Global 0:08:06.440 --> 0:08:09.280 news twenty four hours a day and whenever you want 0:08:09.280 --> 0:08:11.240 it with Bloomberg News Now. I'm Michael Barr. 0:08:11.360 --> 0:08:14.480 This is Bloomberg Natha Tricker Streets. That's a great idea. 0:08:14.640 --> 0:08:17.920 Thank you, Michael. Now great news because we do bring 0:08:17.960 --> 0:08:19.960 you news throughout the day here on Bloomberg Radio. But 0:08:20.000 --> 0:08:22.600 now you can get the latest news on demand whenever 0:08:22.680 --> 0:08:25.560 you want it. Subscribe to Bloomberg News Now to get 0:08:25.600 --> 0:08:27.720 the latest headlines at the click of a button. Get 0:08:27.720 --> 0:08:30.520 informed on your schedule, Listen and subscribe to Bloomberg News 0:08:30.520 --> 0:08:34.240 now on the Bloomberg Business app, Bloomberg dot com, plus Apple, Spotify, 0:08:34.520 --> 0:08:41.679 and anywhere else you get your podcasts. Time now for 0:08:41.720 --> 0:08:44.160 the Bloomberg Sports Update, brought to you by tri State Outy. 0:08:44.160 --> 0:08:46.360 Good morning, John stash Hour, Good morning. Eighth in this. 0:08:46.360 --> 0:08:49.920 World series with two unlikely teams begins tonight. Both Arizona 0:08:49.920 --> 0:08:52.800 and Texas lost over one hundred games just two years ago. 0:08:53.080 --> 0:08:55.200 Both snuck into the postseason as a wild card, but 0:08:55.240 --> 0:08:56.480 are nine and three allthough. 0:08:56.480 --> 0:08:58.719 The Rangers are one and three at home eight no 0:08:58.920 --> 0:08:59.719 on the road. Ain't arly. 0:09:00.240 --> 0:09:02.760 They start Nathan Evaldi, who's four and oh in the postseason. 0:09:03.080 --> 0:09:06.000 The Diamondbacks start Zach Gallon. The Bills are four and oh. 0:09:06.120 --> 0:09:09.160 In Buffalo, they never trailed, beat the Bucks twenty four 0:09:09.200 --> 0:09:12.319 to eighteen. Josh Allen threw for two touchdowns ran for another. 0:09:12.320 --> 0:09:14.679 The Jets and Giants first played each other in nineteen 0:09:14.920 --> 0:09:19.000 seventy Sunday's game only the fifteenth regular season meeting ever. 0:09:19.080 --> 0:09:21.080 Giants lead the series eight to six. Jets have won 0:09:21.160 --> 0:09:24.200 the last two. Last Giants win was twenty eleven. They 0:09:24.200 --> 0:09:27.079 won the Super Bowl that year. Here's Jets coach Rob Sala. 0:09:27.640 --> 0:09:30.560 I'm excited about You said it's once every four years. 0:09:31.160 --> 0:09:34.120 Maybe there's a crossover now at the seventeenth game. But 0:09:35.200 --> 0:09:36.760 you know, I think it's really cool for the fans. 0:09:36.760 --> 0:09:39.240 I think it's great for sports talk radio and all 0:09:39.280 --> 0:09:45.120 the different newspaper outlets and all that. But you know, 0:09:45.160 --> 0:09:47.880 it's a championship opportunity. You know, a lot of respect 0:09:47.920 --> 0:09:50.040 for them. They've got a tremendous history. 0:09:49.760 --> 0:09:52.680 Of Salla's backup running back is veteran Dalvin Cook plays 0:09:52.720 --> 0:09:55.480 behind Breeze Hall. Cook says he's frustrated being the backup, 0:09:55.559 --> 0:09:58.080 might want a trade before next week's deadline. A five 0:09:58.160 --> 0:10:00.360 game road trip for the Rangers. They won the first 0:10:00.360 --> 0:10:02.480 three and of a lot only two goals the shutout 0:10:02.480 --> 0:10:05.960 for Jonathan Quick and Edmonton. Rangers won three nothing. Islanders 0:10:06.000 --> 0:10:08.560 beat Atawa three two. Damian Lillard's first game for the 0:10:08.559 --> 0:10:11.920 Bucks in Milwaukee port in thirty nine points and a 0:10:11.920 --> 0:10:14.360 one point win over the Sixers. The Lakers, bree Phoenix 0:10:14.679 --> 0:10:16.760 Nixon Nets began with losses at home. They're on the 0:10:16.840 --> 0:10:19.680 road tonight, Nicks in Atlanta. Nets are in Dallas. They'll 0:10:19.679 --> 0:10:20.439 face the X next. 0:10:20.480 --> 0:10:24.360 Tyler RD Johns, Dashawl Bloomberg Sports Nathan. All right, John, Thanks. 0:10:24.400 --> 0:10:26.679 Bloomberg Sports is brought to you by Audi. Don't let 0:10:26.720 --> 0:10:29.440 someone else drive off in the Audi model you've always wanted. 0:10:29.520 --> 0:10:32.040 Visit your local Tri state AUDI dealer to get behind 0:10:32.040 --> 0:10:35.360 the wheel of yours today, or visit audioffers dot com 0:10:35.400 --> 0:10:38.880 for more information. A debrief on the Israel Hamas War. Next, 0:10:38.880 --> 0:10:41.720 we're gonna check in with Bloomberg's Israel Bureau chief Ethan 0:10:41.760 --> 0:10:47.559 Brunner in Tel Aviv, from. 0:10:47.360 --> 0:10:50.760 Coast to coast, from New York to San Francisco, Boston 0:10:50.840 --> 0:10:55.400 to Washington, DC, nationwide on Syrias XAM, the Bloomberg Business 0:10:55.400 --> 0:10:57.000 app in Bloomberg dot com. 0:10:57.200 --> 0:11:01.840 This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. The 0:11:01.880 --> 0:11:04.560 world is watching for the next phase in the Israel 0:11:04.559 --> 0:11:07.920 Hamas War. Israel has carried out ground rates in Gaza 0:11:08.000 --> 0:11:10.640 for a second straight night, and now the US is 0:11:10.679 --> 0:11:14.640 targeting are striking targets in Syria that it says have 0:11:14.679 --> 0:11:17.160 been used by Iran and its proxy groups for the 0:11:17.200 --> 0:11:20.160 latest We are joined by Bloomberg's Israel Bureau chief Ethan 0:11:20.200 --> 0:11:23.520 Bronner in Tel Aviv. Ethan, good morning. What more can 0:11:23.559 --> 0:11:26.600 we say now about this latest military activity, not just 0:11:26.640 --> 0:11:29.160 by Israel but now apparently the United States. 0:11:30.520 --> 0:11:33.040 Yes, well, I mean, what we can say is that 0:11:33.080 --> 0:11:36.200 these are a small piece of evidence of the risk 0:11:36.280 --> 0:11:40.040 of a spreading conflict, of the fact that Iranian proxies 0:11:40.200 --> 0:11:44.560 around the region, not just Hamas in Gaza, are at work, 0:11:44.840 --> 0:11:47.600 and that a combined force of Israel in the United 0:11:47.640 --> 0:11:50.520 States seeking to sort of keep them in their place, 0:11:50.600 --> 0:11:53.640 as it were, as opposed to letting it get truly 0:11:53.679 --> 0:11:58.320 out of hand. The Americans have absolutely heightened their military 0:11:58.520 --> 0:12:01.880 profile in the region. The Eisenhower is on the way 0:12:01.920 --> 0:12:04.920 to the Eastern metag should be here by Monday. There's 0:12:04.960 --> 0:12:07.760 a whole bunch of Patriot missiles, a whole bunch of 0:12:07.840 --> 0:12:12.200 troops as well, and Israel is trying to decide what 0:12:12.240 --> 0:12:14.400 it's going to do in Gaza. I think it's become 0:12:14.400 --> 0:12:19.360 an increasingly anguished decision because of those two hundred plus hostages, 0:12:19.600 --> 0:12:23.400 because of the concern that victory is hard to define, 0:12:24.000 --> 0:12:28.680 and because even though people are humiliated and furious about 0:12:28.679 --> 0:12:32.120 what happened in October seventh, the question of how many 0:12:32.640 --> 0:12:37.400 casualties Israel truly wants to take in this far from clear. 0:12:37.840 --> 0:12:40.720 And to that point, Ethan there has to be some 0:12:40.920 --> 0:12:44.040 thinking on the Israeli part about how to continue to 0:12:44.120 --> 0:12:49.800 keep Allied support given how fierce the response has been 0:12:50.480 --> 0:12:55.280 on the Israeli side following that October seventh attack by Hamas. 0:12:56.000 --> 0:12:58.960 Look, I think that's true, I mean absolutely. I wrote 0:12:58.960 --> 0:13:00.800 a story a couple of days ago about the sense 0:13:00.840 --> 0:13:03.719 that Israel has that it is increasingly alone in its 0:13:03.800 --> 0:13:06.800 view of the legitimacy of what it's doing. It's not 0:13:06.880 --> 0:13:10.240 alone alone, and that the United States has been a 0:13:10.559 --> 0:13:13.679 standing shoulder or shoulder with it. The Europeans have come 0:13:13.800 --> 0:13:17.560 through and have said, we feel your pain, we understand, 0:13:17.600 --> 0:13:21.200 we agree AMAS is a terrible organization needs to be dismantled. 0:13:21.480 --> 0:13:23.640 But what does that really mean? And at what cost? 0:13:23.760 --> 0:13:27.400 And what about these seven thousand dead people in Gaza? 0:13:27.920 --> 0:13:30.040 And I think even the United States feels a way, 0:13:30.080 --> 0:13:32.840 and even people in Israel to some extent are beginning 0:13:32.840 --> 0:13:36.000 to ask what does it mean to do? What is 0:13:36.040 --> 0:13:38.040 the right thing to do? And I don't think they've 0:13:38.040 --> 0:13:41.720 figured it out. There is a sense here that unless 0:13:42.120 --> 0:13:46.040 AMAS is ultimately dismantled, that that life here will not 0:13:46.200 --> 0:13:49.160 be tolerable, that people will not stay, people not live 0:13:49.200 --> 0:13:52.000 along the border, and that is not something that's acceptable. 0:13:52.280 --> 0:13:55.000 But what does it mean on what time and what 0:13:55.120 --> 0:13:58.280 time frame Israel needs to do this, I think is 0:13:58.320 --> 0:14:01.280 the key. In addition to the concern that Hisbella and 0:14:01.360 --> 0:14:05.679 other Iranian back groups could enter the frame and. 0:14:05.640 --> 0:14:08.160 At the same time, Ethan, we've heard from Israel that 0:14:08.200 --> 0:14:10.440 the strikes that have been carried out have continued to 0:14:10.480 --> 0:14:13.000 take out HUMAS leadership. I think one of the latest 0:14:13.040 --> 0:14:16.920 reports was that a deputy director of HUMAS has been 0:14:17.000 --> 0:14:18.840 killed in one of the latest strikes. Is there a 0:14:18.920 --> 0:14:23.000 sense that taking out the leadership is achieving some of 0:14:23.000 --> 0:14:25.000 the objectives that Israel is setting out here? 0:14:25.800 --> 0:14:27.920 Well, I mean, I don't know that we're there yet. 0:14:28.120 --> 0:14:32.040 That's absolutely Israel's contention. And they've set up, in fact, 0:14:32.120 --> 0:14:36.960 within the security system a kind of a squad that's 0:14:37.040 --> 0:14:39.560 going to take it upon itself over the next year 0:14:39.680 --> 0:14:43.520 or two or three to take guys out who've led HUMAS, 0:14:43.600 --> 0:14:46.400 whether they're in Gaza or in Katar, or in Lebanon 0:14:46.520 --> 0:14:50.000 or in Turkey. There's a kind of assassination squad that's 0:14:50.000 --> 0:14:52.560 been set up, and they're also going after them inside. 0:14:52.600 --> 0:14:54.840 Does it make a difference, It must make a difference, 0:14:55.320 --> 0:14:58.280 But you know, they're spread around. There are a lot 0:14:58.320 --> 0:15:01.040 of them, and it's very hard to the impression one 0:15:01.080 --> 0:15:03.320 gets at the moment is that it's sort of middle 0:15:03.360 --> 0:15:06.600 management that they've been able to get, not the top guys. 0:15:06.840 --> 0:15:08.840 So I don't know how big a difference it's making. 0:15:10.000 --> 0:15:12.840 Appreciate you coming back on with us, Ethan, and keeping 0:15:12.920 --> 0:15:15.040 us up to speed on all the developments that have 0:15:15.080 --> 0:15:18.440 been happening in the Israel Humas War now with these 0:15:18.880 --> 0:15:22.680 US strikes into Syria as well. Ethan Browner are Israel 0:15:22.720 --> 0:15:26.360 bureau chief for Bloomberg News, joining us this morning from 0:15:26.480 --> 0:15:29.000 Tel Aviv. And now we want to turn to a 0:15:29.040 --> 0:15:34.080 conversation with Treasury Secretary Janet Yellen. She joined Bloomberg Washington 0:15:34.120 --> 0:15:39.200 Bureau chief Peggy Collins for a wide ranging conversation after 0:15:39.400 --> 0:15:42.120 we saw a third quarter GDP in the US grow 0:15:42.160 --> 0:15:46.680 at its fastest pace in nearly two years. Secretary Yellen 0:15:46.760 --> 0:15:50.120 talked about that blowout economic figure as well as rising 0:15:50.200 --> 0:15:53.600 bond yields and geopolitical risks. Let's go to part of 0:15:53.600 --> 0:15:54.280 that discussion. 0:15:54.360 --> 0:15:58.240 Now, it's a good strong number and it shows an 0:15:58.320 --> 0:16:02.600 economy that's doing very well. Let's remember it is just 0:16:02.720 --> 0:16:07.160 one quarter's number, and I'm not expecting a growth at 0:16:07.240 --> 0:16:12.960 that pace to continue. But we do have good, solid growth. 0:16:14.080 --> 0:16:16.960 You know, probably the year will come in close to 0:16:17.240 --> 0:16:20.160 two and a half. I wouldn't be surprised if we 0:16:20.240 --> 0:16:25.800 see that we have solid job creation, a low unemployment rate, 0:16:27.240 --> 0:16:32.440 increased engagement in the labor force, inflation's coming down, and 0:16:32.680 --> 0:16:36.520 you don't really see any sign of recession here. 0:16:37.120 --> 0:16:38.640 I have to say, I've been saying. 0:16:38.400 --> 0:16:41.280 For a long time that I believed there was a 0:16:41.320 --> 0:16:45.240 path to bring inflation down in the context of a 0:16:45.320 --> 0:16:49.200 strong labor market. Frankly, it's only it's about a year 0:16:49.240 --> 0:16:54.280 ago since I believe a Bloomberg model predicted that by 0:16:54.720 --> 0:16:55.840 October of. 0:16:55.840 --> 0:16:56.960 Twenty twenty three. 0:16:57.640 --> 0:17:01.720 Now, namely that you saw at the odds of recession 0:17:01.800 --> 0:17:02.880 at one hundred percent. 0:17:03.480 --> 0:17:05.760 I don't think we have that. You know, what we 0:17:05.880 --> 0:17:07.000 have looks like. 0:17:07.040 --> 0:17:10.840 Is soft landing with very good outcomes for the US economy. 0:17:11.240 --> 0:17:14.320 So I think there's a lot to be pleased to beat. 0:17:14.400 --> 0:17:19.719 And you see good strong consumer spending. Consumers still have 0:17:20.520 --> 0:17:25.960 substantial wealth. I think it's supporting good strong spending and 0:17:26.119 --> 0:17:29.240 the economy is doing well, and I think US growth 0:17:29.320 --> 0:17:32.960 is making a contribution to stronger global outcomes as well. 0:17:33.160 --> 0:17:34.920 So I want to ask you a little bit about 0:17:35.000 --> 0:17:37.560 the rise in yields that we've seen. We've seen yield 0:17:37.680 --> 0:17:40.480 surging over the last few weeks. The ten year treasury 0:17:40.640 --> 0:17:44.480 rose above five percent earlier this week. What's your view 0:17:44.640 --> 0:17:48.160 on what is driving that surgeon yields and how much 0:17:48.200 --> 0:17:51.600 of it is connected to investors' concerns about the US deficit. 0:17:51.960 --> 0:17:55.840 Well, I don't think much of it is connected to that. 0:17:56.119 --> 0:18:00.359 This is a global phenomenon in advanced countries where seeing 0:18:00.480 --> 0:18:06.240 yields go up in most advanced countries of the world largely, 0:18:06.480 --> 0:18:10.360 I think it's a reflection of the resilience that people 0:18:10.480 --> 0:18:15.240 are seeing in the US economy, that we're not having. 0:18:15.080 --> 0:18:17.520 A recession, that consumer. 0:18:17.080 --> 0:18:23.040 Spending and demand continue to be strong, The economy is 0:18:23.119 --> 0:18:30.719 continuing continuing to show tremendous robustness, and that suggests that 0:18:31.160 --> 0:18:34.679 interest rates are likely to stay higher for longer. And 0:18:34.720 --> 0:18:38.800 so part of the increase in yields I think is 0:18:38.880 --> 0:18:43.000 simply a reflection of the strength of the economy, the 0:18:43.040 --> 0:18:45.960 notion that interest rates will be higher for longer. 0:18:46.440 --> 0:18:47.640 Now, whether or not. 0:18:47.640 --> 0:18:50.800 That's really true if we look at five or ten years, 0:18:51.359 --> 0:18:55.280 what are interest rates likely to do? Honestly, for a 0:18:55.440 --> 0:19:00.600 very long time, we've felt that interest rates over decades 0:19:00.640 --> 0:19:04.640 had been coming down real interest rates, and there were 0:19:04.720 --> 0:19:09.560 deep structural reasons for that, in part relating to demographics 0:19:09.920 --> 0:19:13.919 and those underlying trends. They're still there, they're still in force. 0:19:14.520 --> 0:19:19.000 So I think it's perfectly possible that we will see 0:19:19.600 --> 0:19:23.840 longer term yields come down, but nobody really knows for sure. 0:19:23.920 --> 0:19:28.720 But I see the higher yields as certainly importantly a 0:19:28.840 --> 0:19:30.720 reflection for stronger economy. 0:19:30.880 --> 0:19:33.760 I know you took a trip to China in big 0:19:33.880 --> 0:19:37.200 to Beijing this summer. You've been talking about how our 0:19:37.200 --> 0:19:41.000 policy should really be around de risking or diversifying rather 0:19:41.080 --> 0:19:44.280 than decoupling. But what do you think is the current 0:19:44.320 --> 0:19:47.600 status of that. Do you think the Chinese have adopted 0:19:47.600 --> 0:19:49.879 that and feel like they can trust us on that front, 0:19:49.960 --> 0:19:52.199 or do you think they still really think that we're 0:19:52.960 --> 0:19:55.760 in a competition with them first and foremost. 0:19:56.280 --> 0:20:01.000 So, I mean we've articulated a strategy. As you said, 0:20:01.119 --> 0:20:06.399 it involves de risking in some areas where we're overly 0:20:06.560 --> 0:20:11.480 dependent on China, and clean energy is a good example. 0:20:14.119 --> 0:20:19.720 We also intend to focus on national security. 0:20:20.080 --> 0:20:21.359 That's an area. 0:20:21.040 --> 0:20:25.320 That we're not willing to compromise on, and so we 0:20:25.359 --> 0:20:29.600 have We do have export controls. We continue to review 0:20:29.680 --> 0:20:35.439 them with We're working on a set of restrictions on 0:20:35.720 --> 0:20:41.040 outbound investment to China. We've discussed this with them and 0:20:41.119 --> 0:20:44.919 put out a proposal that's in the public domain. I 0:20:44.920 --> 0:20:49.119 think comments just closed on it. But our objective there 0:20:49.600 --> 0:20:53.000 is to target what we do as narrowly as possible 0:20:53.400 --> 0:20:57.239 so that it really focuses on national security, that it 0:20:57.320 --> 0:21:02.040 is not an intention in that to harm the prospects 0:21:02.080 --> 0:21:07.879 of Chinese economic development and the welfare of the Chinese people. 0:21:08.200 --> 0:21:11.760 With the Israel Hamas war happening in the Middle East, 0:21:11.960 --> 0:21:14.960 I think there's a concern by some that the war 0:21:15.040 --> 0:21:17.919 could spread or expand to broader in the region. I 0:21:17.960 --> 0:21:20.959 know that that's not your base case, but if that 0:21:21.240 --> 0:21:23.600 was to happen, could you walk us through your wrist 0:21:23.680 --> 0:21:26.760 scenario for what that might mean to the global economy. 0:21:27.119 --> 0:21:31.199 My focus is, I look now at what's happening to 0:21:31.280 --> 0:21:36.080 the Middle East. Really is the tragedy, the human tragedy 0:21:36.200 --> 0:21:40.280 that's taking place with the Israelis have suffered, and of 0:21:40.320 --> 0:21:46.640 course we're worried about casualties in Gaza as Israel. 0:21:47.960 --> 0:21:50.080 Pursues its war against Tamas. 0:21:50.720 --> 0:21:55.720 So far, I would say we've not yet seen much 0:21:56.440 --> 0:22:03.200 that has global consequences. What could happen if the war expands. 0:22:03.520 --> 0:22:07.840 Of course, there could be more meaningful consequences, but I 0:22:07.880 --> 0:22:12.359 think it's premature to speculate against about those, and I 0:22:12.400 --> 0:22:16.240 think our focus should be keeping this contained and not spreading. 0:22:16.600 --> 0:22:19.160 And that was the Secretary of the Department of the Treasury, 0:22:19.240 --> 0:22:24.240 Janet Yellen, speaking with Bloomberg's Peggy Collins from our Washington newsroom. 0:22:24.320 --> 0:22:28.080 You could hear that entire conversation on the Bloomberg Talks podcast. 0:22:28.160 --> 0:22:31.040 Download the show in all of our high profile discussions 0:22:31.520 --> 0:22:34.879 wherever you get your podcasts. Finally, amy more proof that 0:22:34.960 --> 0:22:47.200 the Taylor Swift era is alive and well. Taylor Swift's 0:22:47.200 --> 0:22:50.280 eras tours generated as much money as the economies of 0:22:50.320 --> 0:22:53.920 small countries. The movie version is ruling the box office. 0:22:54.320 --> 0:22:57.200 New recording of a nine year old album, nineteen eighty nine, 0:22:58.240 --> 0:23:00.919 just dropped at midnight tonight and is expected to be 0:23:00.960 --> 0:23:04.080 one of the hottest selling records of the year. Now 0:23:04.520 --> 0:23:08.160 Taylor Swift's net worth has catapulted her past the billion 0:23:08.480 --> 0:23:12.800 dollar mark. The calculation by Bloomberg News takes into account 0:23:12.840 --> 0:23:16.400 the following, the estimated value of Taylor Swift's music catalog 0:23:16.480 --> 0:23:20.120 and her five homes, as well as earnings from streaming deals, 0:23:20.240 --> 0:23:24.080 music sales, concert tickets, and merchandise. 0:23:27.920 --> 0:23:31.000 This is Bloomberg Daybreak Today, your morning brief on the 0:23:31.040 --> 0:23:34.480 stories making news from Wall Street to Washington and beyond. 0:23:34.960 --> 0:23:38.000 Look for us on your podcast feed by six am 0:23:38.119 --> 0:23:42.359 Eastern each morning, on Apple, Spotify, and anywhere else you 0:23:42.400 --> 0:23:43.520 get your podcasts. 0:23:43.840 --> 0:23:46.560 You can also listen live each morning starting at five 0:23:46.600 --> 0:23:49.240 am Wall Street time on Bloomberg eleven three to zero 0:23:49.240 --> 0:23:52.040 in New York, Bloomberg ninety nine to one in Washington, 0:23:52.200 --> 0:23:55.080 Bloomberg one oh six to one in Boston, and Bloomberg 0:23:55.119 --> 0:23:56.920 ninety sixty in San Francisco. 0:23:57.440 --> 0:24:01.000 Our flagship New York station is also available on your 0:24:01.080 --> 0:24:02.720 Amazon Alexa devices. 0:24:02.960 --> 0:24:05.800 Plus listen coast to coast on the Bloomberg Business app, 0:24:05.920 --> 0:24:09.720 serious XM Channel one nineteen, the iHeartRadio app, and on 0:24:09.840 --> 0:24:12.240 Bloomberg dot Com. I'm Nathan Hager. 0:24:12.240 --> 0:24:15.760 And I'm Amy Morris. Join us again tomorrow morning for 0:24:15.960 --> 0:24:18.640 all the news you need to start your day Right 0:24:18.720 --> 0:24:20.359 here on Bloomberg day Break