Talks Intensify to Release Hostages in Gaza; U.S. Shutdown Deadline

On today's podcast: 1) The Israeli army conducted raids in northern Gaza on the outskirts of the Shati refugee camp , while a UN agency said that a naval strike had seriously damaged one of its guesthouses. 2) The US still faces a risk of a government shutdown at the end of this week despite a new compromise plan by Speaker Mike Johnson that leaves out hardline conservative priorities like cutting spending and curtailing migration. 3) The White House cited a resumption of US-China military communications as a priority ahead of this week’s meeting between Presidents Joe Biden and Xi Jinping . Full transcript: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today. Let's get the latest developments on the war in the Middle East. The US has conducted airstrikes in eastern Syria on targets link to Iran. Those strikes come as talks intensified to secure the release of hostages in the Gaza strip As Bloomberg News Managing editor Sylvia Westall reports, President Biden discussed that issue with the leader of Katar last night. Kata's quite question important role in this. It's already helped mediate between Israel, Hamas and foreign governments to release a small number of people and the estimates for around about two hundred hostages still trapped there, and are those talks ongoing. There's been discussions between Biden and the ruler of Katar and all these countries involved, and Israel said it won't even contemplate a cease far until those hostages are released. Bloomberg Sylvia west All reports President Biden also talked about increasing the flow of humanitarian assistance into Gaza with Cautter's premiere. Well, it's really Prime Minister Benjamin Etna who was asked about whether there could be a deal to exchange captives with Hamas. There could be, but I think the less I said about it, the more I'll increase the chancels that it materializes. And it's a result of pressure, military pressure, of the extraordinary work that the idea of was doing. And Prime Minister Nanya, who was on NBC's Meet the Press, but as really President Isaac Herzog is expressing caution, there are talks of behind the scenes. I cannot confirm any details. What I can say is that there's nothing substantial right now on the table. The United States is also heavily involved in this, so there's nothing tangible that I can report. Israeli President Isaac Herzog was a guest on CBS's Face the Nation, and you can hear Face the Nation and Meet the Press every Sunday on Bloomberg Radio. Turning to politics back here at Home, Karen, there is now one less Republican candidate for president. South Carolina Senator Tim Scott has ended his campaign. Scott says he will not immediately make an endorsement in the race, and he's not looking to join a Republican ticket as a vice presidential candidate Well Nathan. The US faces a risk of a government shutdown at the end of this week. Meanwhile, House Speaker Mike Johnson is trying a new approach to funding the government. By Bloomberg's At Baxter reports, the shutdown risks still Inger. The Johnson plan would extend some government funding until January nineteenth and others until February second. It also declined to do the immedia thirty percent spending cuts demanded by the right wing of his party, so that means fewer Republican votes and reliance on Democrats to cross lines and vote for it. He says, spending addiction cannot be broken overnight. Democrats so far have been moot. Whitehouse, though has already said it would only lead to future shutdowns. Johnson says he's scheduling a vote for tomorrow at Baxter Bloomberg Radio. All right, thank you well. Former New York Fed President Bill Dudley's warning the US fiscal position is on a quote unsustainable trajectory. Dudley is also a columnist form Bloomberg Opinion. He told the conference in Sydney there's a lack of political will to resolve the crisis at a time when debt costs are soaring, Nathan. The warning from Dudley comes just two days after the US was threatened with the loss of its last top credit rating. Moody's Investors' Service signaled it was inclined to downgrade the nation because of a wider budget deficits and political polarization. Deborah Cunningham is Global Liquidity Market's Chief investment officer at Federated Hermes. The concerns being bore what's happening from a congressional perspective, and the dysfunctionality from a lawmaking standpoint is the concern rather than the actual quantitative financials. So I think from an impact as much on the economy from an impact on where rates are at this point, I think that's behind US and debort Cunningham had federated Herme, says Moody's is the only one of the three main credit companies with a top rating on the US Karen, We're watching for major geopolitical news this week. President Joe Biden and Chinese leader Shei Jinping are scheduled to meet face to face on Wednesday, as the United States hosts the annual Asia Pacific Economic Cooperation Conference for the first time since twenty eleven. White House National Security Advisor Jake Sullivan says resuming military communications is crucial when it comes to managing the relationship. Ties and communications between our two militaries are critical. The Chinese have basically severed those communication links. President Biden would like to re establish them, and he will look to this summit as an opportunity to try to advance the ball on that. National Security Advisor Jake Sullivan tel CNN. The Biden she meetings also expected to cover the Israel Hamas War, Russia's invasion of Ukraine, human rights, and artificial intelligence well NY then ahead of the Biden She meeting. We are seeing signs of improving US China relations. Sources a Beijing is weighing ending a freeze on Boeing seven thirty seven Max aircraft in China. Boeing has not made any significant sales of its best selling narrow body jets in China since at least twenty eighteen. In another development, earlier this morning, the Emirates announced it was buying Boeing aircraft valued at fifty two billion dollars. So the broader market Karen investors have another major event to look forward to tomorrow when we get the latest reading on inflation with the Consumer Price Index for October. Anda Wong is chief US economist with Bloomberg Economics. We are expecting the headline CPI to be very soft because seasonally adjusted gasoline prices actually came down over five percent in October, so a month the increase of zero point one percent on the headline CPI. Bloomberg Chief US Economist Stana Wong says, over all consumer price data are expected to show inflation easing to a year on year rate of three point three percent in October. Time. Now for look at some of the other stories making news around the world. For that. We're joined by Bloomberg Scott Carr, Scott, Good morning, Good morning, Karen. Donald Trump Junior will be back on the stands today in New York as the first defense witness in the Trump organization civil fraud trial. The Trump family organizations being accused of fraudulently inflating their wealth on paper to obtain better loans. The New York Attorney General's Office ended its arguments last Wednesday and was denied a motion to limit certain expert witnesses from testifying for the defense. One person is dead four others injured after a shooting at a flea market in Texas. Police in Perlin, Texas, say three adults and two children were shot at the popular street market yesterday afternoon. Officer Chad Rodgers says the incident started as an argument between two people, though it's unclear if they both had guns. Three adult victims and two children, so a lot of people that are very very upset, and this does not appear to be a targeted attack on the flea market. That this was a disturbance between two individuals that resulted in people being shot. So far, no arrest have been made. All five victims were taken to local hospitals. A state of emergencies been declared in Los Angeles by California Governor Gavin Newsom after fire broke out underneath a storage yard early Saturday morning, igniting highly flammable wooden palettes. Trailers and cars then jump to another storage yard, growing in size to eight acres at one point, causing the closure of LA's Highway ten in both directions. The freeway remains closed, and officials say they'll be lucky if they can get one lane open today. The traffic is going to be horrendous. It's going to really impact Los Angeles. The blaze burned through the equivalent of six football fields. The governor says the state is mobilizing resources to complete repairs and minimize the impact for travel in and around the city. Iceland is evacuating a resort town south of the capital of Reykovic how to fear the town of Grindevic may be destroyed by a volcanic eruption. The town is near an active volcanic system and was evacuated over the weekend after magma shifting beneath the ground triggered hundreds of earthquakes. Local officials say that magma was at a very shallow depth, so they were expecting an eruption at any time. Global news twenty four hours a day and whenever you want it with Bloomberg News Now. I'm Scott Carran. This is Bloomberg all right, Scott, thank you, while we're bringing news throughout the day right here on Bloomberg Radio. But now, as Scott said, 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 podcast. Time Now for the Bloomberg Sports Update, here's John stash Hour John Karen Sunday, number ten in the NFL began for the second week in a row in Frankfurt, Germany. The Colts beat the Patriots ten to six. That drops New England to two to eight, their second three game winning streaking the season. They have the worst record in the AFC. Only Carolina has the worst record in the NFL. The Patriots have scored over seventeen points only twice in ten games. Another win for red hot Houston Texans. It was thirty to twenty seven at Cincinnati. Texans won and on a field goal on the final play. They've gone five games, which is more than they had won in any of the last three seasons. Bengals four game wins streak comes to an end. They fall the last place in the AFC North, where Cleveland won at Baltimore thirty three to thirty one. The Browns were down by fourteen with nine minutes left, scored two touchdowns in the forty three seconds span, then they won on a game winning field goal. That ends the Ravens four game winning streaking. The brown they're only a half game behind. The forty nine Ers, ended their three game losing streak. They won big at Jacksonville thirty four to three and rock Pirty through three touchdown passes. The Commanders lost in Seattle twenty nine to twenty six the Seahawks one on a field goal final play. Last night, the Raiders beat the Jets sixteen to twelve. Third s three loss for the Warriors, beaten home by Minnesota won sixteen to won ten. Philadelphia won it over Indiana's Tyrese Maxi scored fifty points. Dedicated the win to Kelly Oubre of the Sixers, who's going to be out significant time after injury suffered in a car accident Saturday night. Texas A and M and a surprise fired football coach jimbo Fisher. They'll owe him seventy five million in a buyout. John Stashewer Bloomberg Sports from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on SYRIASXAM, the Bloomberg Business app in Bloomberg dot Com. This is Bloomberg day Break. Good morning. I'm Nathan Hager. Now to the latest from the Middle East. The US continues to strike targets in eastern Syria that are linked to Iran, as Israel intensifies its ground campaign against Hamas in northern Gaza. All this as talks continue on the international level to try to release Hamas hostages from more. We're joined by Bloomberg Israel Economy and Government reporter Galite Alstein in Tel Aviv. Ghalite, Good morning. What's the latest we can say now about the ground assault? Of course, there's been a lot of focus in recent days on the Alshifa hospital that Israel says is hiding a main military headquarters for Hamas. Right, So good morning, Nathan. So, as you mentioned, we're seeing the Israeli army pushing forward on the ground operation in Gaza. In northern Gaza, the Israeli troops have been conducting rays over the past hours at the outskirts of the Alshati that's a camp in northern Gaza. They've been targeting what they say is tourist infrastructure that they say is located in central governmental institutions in the heart of civilian population, and that involves our schools, universities, mosques and residences. At the same time, you mentioned Alshika Hospital, so we've been hearing that the last generator that Al Shifa ran out of fuel two days ago November eleventh, and yesterday Israel said that it allowed delivery of fuel three hundred liters of fuel for the first time to this hospital, and then Israel exclaimed that Hamas has prevented the hospital from collecting this fuel. So we have to wait and see on what happens with that. The hospital director has said to media that this quantity, even if it had been collected is far enough from being enough. He said, it could only be sufficient for as little as thirty minutes of operations in the hospital. So we're still waiting to see what happens on that, and also in the evacuate of babies from this hospital, which the idea I found promise to facilitate has not yet happened according to Israel, because Hamas has also been preventing that. As the ground defensive goes on, Galad, of course, we're hearing more talk about trying to secure the release of hostages in the Gaza strip. President Biden held talks last night with Katar's emir about that what role could Qatar play in this situation? Right, so, Kata is considered to be a very important player, perhaps the most significant town of player in these negos negotiations on the release of hostages. There are two hundred and thirty nine hostages that are still being held in Gaza. So, as you mentioned, President Tom Joe Biden this speak with the Katari Emir and he said that the urgent, ongoing efforts to secure additional releases are going on. What we're hearing from Israel media at the same time is a lot of caution on these talks. We've heard them. Israeli President tom Isa Kertzev express question about a possible release of hostages helped by Hamasi said last night that there is nothing substantial right now on the table, although we are using all tools possible quote unquote, that's what he said, and Israeli media have been reporting that talks are on the release of around eighty hostages, probably women, children and earlerly will be prioritized if this release does take place, with Hamas demanding a ceasefire of roughly three to five days in return for these releases, and a similar number of Palestinian prisoners to be released as well. As I said, everyone is discussing this with a lot of caution, and it's not clear whether these talks will show any results anytime soon. In the meantime, Israel is also continuing to face fire from Hesbola in the north, going from or coming from Lebanon. Is the Israeli military in our last minute here Galite at risk of getting under further strain, potentially getting stretched. Right So so this is a very important point. Yesterday there was a very clear sense of escalation on Israel's border, with Lebanon. It was the most intense day of fighting since October seventh, a lot of back and forth fire, some civilians and civilians were injured. Israeli civilians were injured in these fire exchange exchanges. So Israel has been retaliating, you know, all the time to these attacks. There's also been some attacks this morning, although at a slightly lower scale with no one with no one injured. The Tel Aviv stock exchange is down for a second straight day following these events. So this is being closely watched on all fronts. And you know, I will mention finally that Israeli Defense minister, you have Glanc's ass at a press conference on Saturday night, what would be Israel's redline on this border? And he answered the reporter who asked this, when we strike in remoot, you'll know that this red line had been crossed. 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 one in Washington, Bloomberg one oh six' 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, Serious XM, the iHeartRadio app, and on Blue 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 See omnystudio.com/listener for privacy information.