Gaza Strikes Intensify; Humanitarian Windows Open; Powell Upends Bond Market

On today's podcast: 1) Israeli struck outpatient clinics of Al-Shifa Medical complex in Gaza City , Palestine Authority radio reports. The Israeli military has said that Hamas’s main military headquarters is located underground near Al-Shifa and has told the hospital to evacuate patients. 2) Federal Reserve Chair Jerome Powell said the US central bank will continue to move carefully but won’t hesitate to tighten policy further if needed to contain inflation. 3) West Virginia Senator Joe Manchin announced Thursday he won’t seek reelection , a blow to Democrats’ prospects for keeping the Senate majority in 2025. 4) Industrial & Commercial Bank of China’s US unit had been hit by a cyberattack , rendering it unable to clear swathes of US Treasury trades after entities responsible for settling the transactions swiftly disconnected from the stricken systems. That forced ICBC to send the required settlement details to those parties by a messenger carrying a thumb drive as the state-owned lender raced to limit the damage. 5) Chicago Bears take down the Carolina Panthers in Thursday Night Football Full transcript: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today. Karen, the latest on the Israel Hamas war. Israel says it's struck back at an organization from Syria. The target at a school in the southern city of Ailat with a drone. Meanwhile, the White House is confirmed Israel's agreed to four hour daily humanitarian pauses in northern Gaza to allow civilians to flee, but Mark Regev, who advises Israel's Prime Minister, says it's not a ceasefire. We will continue this operation until we have destroyed Harmasa's military machine. The idea of a humanitarian pause is in a specific place, for a specific time, to help the civilian population who are not the target of our operation on the country. We want to see the move out of Hamsway. That was Benjamin Natanyahu advisor Mark Regev meantime. A short time ago, Palesidine Authority Radio reported that Israel's forces struck outpatient clinics of a medical complex in Gaza City. Israel's military says the main military headquarters of Hamas are located underground near that hospital, and had they told the hospital to evacuate patients, well, Nathan, we turn now to news that still making waves in Washington. A Democrat, Joe Mansion of West Virginia, stepping away from Capitol Hill. I will not be running for re election to the United States Senate, but what I will be doing is traveling the country and speaking out to see if there is an interest in creating a movement to mobilize the middle and bring Americans together. Senator Manchin is an honorary original honorary co share of No Labels, the centrist group that's now working on a possible third party presidential campaign. Bloomberg's Wendy Benjamin Sin has more from Washington. If he does go for an independent or third party run, that's going to make it very, very difficult, because the people who feel that Biden may have gone too far to the left, or is too old, or all the other things are looking at this guy a true old soele conservative Democrat. Bloomberg's Wendy Benjamin Sin notes mansion still has eleven point three million dollars in a Senate reelection campaign that he could use in a presidential run. Well, politics has Washington's focus. Karen Summer, President Biden's cabinet have headed West Finance. Leaders of the US and China have begun talks setting the groundwork for the Biden she meeting next week at the Asia Pacific Economic Cooperation Summit. Bloomberg's Ed Baxter has the story from San Francisco. Treasury Secretary Janet Yellen meets again today here in San Francisco with Chinese Vice Premier Hu LaFong. She is saying the US has no design to break economic ties with China, but these two day meetings are aimed at making progress on a slew of economic issues before the heads of state sit down. China's main concerns in the supply chains in high tech, the US focusing on fair competition in tech, as well as freedoms and the issue of Taiwan. In San Francisco, I'm at Baxter Bloomberg Radio. All right, ed, thanks, So we turned to the markets now, and stocks are coming off their first drop in eight sessions. That declines came after FED Chair J Powell warrant interest rates may have to climb further. If it becomes appropriate to tighten policy further, we will not hesitate to do so. We will continue to move carefully, however, allowing us to address both the risk of being misled by a few good months of data and the risk of overtightening. On the same day Powell spoke, Richmond FED President Thomas Barkin said the US economy still has not felt the full effect of past interest rate increases. I think there's more lag to come from hikes. I'm not sure that you know that's everybody's view, but that's that's certainly my view. I also believe that there's inflation is going to take longer to settle than the more optimistic forecast that you might see. And the economy is also in focus in Europe. The UK economy flatlined in the third quarter, defying forecasts of a small contraction and ensuring a recession is avoided this year. GDP was unchanged from q two. Economists surveyed by Bloomberg forecast a tenth of one percent decline on average. Well. In other news this morning, Nathan the world's largest bank, has been hit by a cyber attack. The incident caused the US unit of the Industrial and Commercial Bank of China to reroot some treasury trades and may get more from Bloomberg's reshound Salamad in Hong Kong. The hack forced clients to reroot transactions. A large number of trades in US treasuries were prevented from being cleared. It left brokers and traders scrambling to US as the extent of the impact of the cyber attack. There are reports of liquidity being affected, and speculation continues to mount that the issues were a cattle for a very poor oaction of thirty year bonds. So to say, ICBC allerted clients that trading was being impacted. ICBC as seti hight cybersecurity for a mandant and has been offered assistance from the FBI in Hong Kong. I'm Rishard Salomit Bloomberg Radio Oka, rish thank you staying in Asia. The final day of the Bloomberg New Economy Forum in Singapore has wrapped up. Climate change was a major focus. We caught up with US Special Presidential Envoy for Climate John Kerry. People are well aware of how critical the situation is. Mother Nature has been sending us massive messages in the last years. We know we have to reduce the emissions. We know that the costs of not doing so will be much greater than the cost of doing so. And Special Climate Envoy John Kerrey praise the Inflation Reduction Act for attracting green investment to help fight climate change. Well, Nathan, let's check out some stocks on the move this morning. Shares a Biagio down more than eleven percent, the maker of Johnny Walker and Smeirnov Vodka issuing a profit warning because of a steep slowdown in Latin America. Shares of Plug Power They're plunging down more than twenty nine percent in early trading. The company reported revenue well below estimates. S and P futures are little changed right now up a point. Futures up two tents of one percent, a gain of sixty points. In NASTAC futures are lower by two tenths of one percent. That's a decline of twenty seven points. Tenure Treasury is down three thirty seconds, for a yield of four point sixty three percent. This is Bloomberg. All right, Nathan, thanks time now for a look at some of the other stories making news around the world. For that, we're joined by Bloomberg's John Tucker. John, Good morning, Good morning, Karen. The FBI investigating potentially deadly attacks on election offices in five states, bombing some letters laced with fencanyl. The letters were sent to Nevada, California, at Georgia, Oregon, at Washington State. The Fulton County, Georgia Board of Commissioners chairman is Rob Pitts. Crazy people out there who will go to any extreme to disrupt, interrupt, fair, open, transparent elections in our country and specifically here in Fulton County. Officials are calling it domestic terrorism. They're only seven days until the government could face yet another shutdown. More in that story from Washington and Bloomberg. Steve Potis Congress needs to approve a budget that would keep the government funded through the rest of the year, but there are already some divisions among Republicans as to how that may happen. Democrats also say they wouldn't accept certain cuts to social programs, and the White House says that some of the bills Republicans are proposing would cut funds to law enforcement. White House Deputy Press Secretary Olivia Dalton says the time is running out and House Republicans should stop playing political games and follow the lead of the Senate by getting to work on bipartisan bills. Steve Potisk Bloomberg Radio. President Biden was in the Illinois Thursday congratulating union auto workers taking a victory lap after they won a new contract. The President reminding those workers he joined them on the picket line, and Donald Trump did not. I stood and other stood with his shoulder and shoulder on that picket line. My predecessor went to a non union shop and attacked. I hope you says, so. I hope you guys have a memory where I come from. It matters. Mister Biden was the first president in history to join workers on the picket line. The nation's first openly gay governor, looking to re enter politics nearly twenty years after he left former New Jersey Governor Jim McGreevy, announcing Thursday he'll seek the mayor's office in Jersey City in twenty twenty five. He announced in August two thousand and four he was a gay American and acknowledged having an extramarital affair with the male staffer he resigned that year. Global News twenty four hours a day and whenever you want it with Bloomberg News Now. I'm John Tucker, and this he is Bloomberg Karen. All right, John, thank you well. We bring you news throughout the day right here on Bloomberg Radio. But now as you can get the latest news on demand whenever you wanted, 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 Apples, Spotify, and anywhere else you get your podcasts. Time now for the Bloomberg Sports Update. Here's John Stash Hour, John Karen. The Thursday night game to kick off Week ten in the NFL. Not much of a game. Carolina Panthers have only won once all season. Chicago Bears came in having won only twice. Panthers got a seventy nine yard aquartment through the first quarter, but it is their only touchdown, and the Bears got one in the third quarter to take their first lead. Chicago won sixteen thirteen, and this helps the Bears get the first pick of the draft because they own Carolina's pick as a result of the trade of the two teams swung just before last year's draft when the Panthers moved up, and we're able to get the first overall pick and take quarterback Pryce Young NBA in Mexico City. Good one. We treated Atlanta and Orlando gray seabasket. Craig goes underde Ls at the corner. Dejante Let's take away just three Foma books take the lead ten twenty tenswoey tea that the final Hawks radio the Caltre Young forty one points in the victory. Gianna's Sun to the Cup reported in fifty four points but had two late turnovers, and Milwaukee blew a ten point fourth quarter lead and lost at Indiana one twenty six till one twenty four Celtics are home tonight to play in the Brooklyn Nets. The Wizards host Charlotte. The Warriors don't play until Saturday, when they take on Cleveland. Bruins. Hot Start continues the hat trick for Charlie Coyle in a five to two win over the New York Islanders. Rangers Hot Start with their tenth win. They beat Minnesota four to one. Connor Bdard, the young star for Chicago, two goals to assist his best game. Blackhawks beat Tampa Bay five to three. The player of the air at women's college basketball, Caitlin Clark forty four points in Iowa season openings win. John Stanshaware Bloomberg Sports, Karen all right, John, thank you well. Straight ahead on Bloomberg Daybreak, we're going to get the very latest out of Israel. We'll be speaking with the Bloombergs Kalite Allstein in Tel Aviv. And ahead of that conversation, SNP futures are little change down, futures up a tenth of up percent. NASDAK future is down two tenths of up percent. Ten year treasury down four thirty seconds, the yeal four point sixty four percent, and the yield on the two year is at five point two percent. Nimex screwed oil up eight tenths of up percent. And this is Bloomberg from coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Syria's exam the Bloomberg Business app in Bloomberg dot Com. This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. We want to get you caught up now on the war in the Middle East. We've seen more strikes into Syria as Israel continues its advances on Hamas in Gaza, and Israel's military now says it has agreed to quick humanitarian windows to allow people to flee the fighting in northern Gaza. For the very latest, we are joined now from Tel Aviv by Bloomberg News Economy and Government reporter for Israel, Kalie alstein Ghalid. Thanks for being with us. As always, I want to start off with this latest report that we're hearing, I think from Palestine Authority Radio about Israeli strikes on an out patient clinic in Gaza City. What more do we know? All right? Hi, Good morning, Nathan, so on the ground in Gaza Israeli army, as we know, has been operating at the heart of Kaza City over the past several days, and now we have been hearing more and more reports from the Palestinian side that some of these Israeli forces are approaching hospitals. So, as you mentioned, we heard the report from the Palestinian Authority radio that says that dozens were killed and wounded from an Israeli strike on outpatient clinics at Al Shifa Medical Complex in Gaza City. And we also hear Hamas saying that there are Israeli tanks in the vicinity of three different hospitals in northern Gaza, and these are different hospitals, Alvan Tisci, Al Nassel and Al Ajun Hospital, and the director of one of these hospitals, the Children's Hospital, issues a comment saying we've been surrounded in the hospital since yesterday and IDF vehicles are stationed around the hospital. We cannot provide even the slightest medical services, so that's what this hospital director is saying. Now, all these statements have not yet been confirmed by the IDEF, but I think we can probably definitely not probably expect more to come on that. But the Israeli military has said made some comments about potential targets in that area. What is the Israeli military saying about that? So, the Israeli military has been saying for a while that Hamas command centers are positioned underground beneath some of these hospitals. They've mainly focused on Al Shifa Hospital, and they've also presented some evidence the idea that they said was back by the US and the UK intelligence agencies. They've shown evidence that command centers of Kama's opposition beneath Al Shifa Hospital, and they say this is not the only hospital where this is happening. So that is why we are getting these reports of army, Israeli army forces surrounding these hospitals probably and this is coming after Israel's military confirmed US reports that there was an agreement on humanitarian windows in the fighting. What more do we know about that? Right? So, I think we're basically seeing a similar dynamic over the last couple of days with Israel providing humanitarian windows to allow people to flee in northern Gaza, and the IDF estimates that between fifty to one hundred thousand people have exited northern Gaza, over the last few days, with the total of almost some nine hundred thousand leaving the area since fighting began. And this is an area that usually occupies more than a million people, so that would mean that most people, according to the Ideas have left. At the same time as these people moved to the safe zones in the south of Gaza, we still see a modest number of eight trucks, that's how the UN describes it coming in from Egypt sixty five days. Trucks came in yesterday and the need is for at least one hundred trucks some day. That's what the UN said. And I think another interesting point to mention Nathan on what's coming and how long this fighting will take. We hear something on that from Israeli Prime Minister Benjaminitaniao who gives them an interview to Fox News tonight, and he says, well, it has taken a little longer than I had hoped, and he explained that this is taking longer on account of battle conditions on the ground and the safety of Ideas troops that Israel is obviously concerned with, and also getting out the hostages that they're in there. And he does admit that this is affecting the time that this operation is taking and just quickly about last thirty seconds scale. Does this say anything these comments from Nats on Yahoo about the impact that diplomacy has had on the Israeli side, Well, you know, Nathaniel denies that that Israel's agreed to any kind of ceasefire, so that hasn't been agreed upon yet. He also talks about these humanitarian fathers and he does give us a hint on the very interesting question of what will happen in the day after, and this is also associated with diplomatic talks, and he says that we'll have to find a government, the civilian government that will be there, but in the foreseeable future, we will have to make sure that this doesn't happen again. He is referring to the ectoty seven attacks. So we have to have a credible force that, if necessary, will enter godt the killers. That's from what he calls you, Homas Wilson. 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 at 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. Just say Alexa Play Bloomberg eleven thirty plus. Listen coast to coast on the Bloomberg Business app, seriusxmb 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. He See omnystudio.com/listener for privacy information.