Israel Says Gaza Truce Resumes; Trump Lists Top China Demands

0:00Hello, I'm Stephen Carroll. I'm in Brussels where many of Europe's biggest decisions get made. And I'm Caroline Hepker in London with the hosts of the Bloomberg Daybreak Europe podcast. We're up early every weekday keeping an eye on what's happening across Europe and around the world. We do it early so the news is fresh, not recycled and so you know what actually matters as the day gets going. From Brussels, I'm following the politics, policy and the people shaping the European Union right now. And from London, I'm looking at what all that means for markets, money and the wider economy. We've got reporters across Europe and around the globe feeding in as stories break.

0:37So whether it's geopolitics, energy, tech or markets, you're hearing it while it happens. It's smart, calm and to the point. And it fits into your morning. You can find new episodes of the Bloomberg Daybreak Europe podcast by 7am in Dublin or 8am in Brussels, Berlin and Paris. On Apple, Spotify, YouTube or wherever you get your podcasts.

1:02Bloomberg Audio Studios. Podcasts. Radio. News.

1:10Good morning. I'm John Tucker. And I'm Karen Moscow. Here are the stories we're following today. We begin this morning with new developments in the Middle East. Israel says it had resumed a truce with Hamas and Gaza after fighting over the weekend. Each side accusing the other of breaching a deal brokered by President Trump. Let's get more from Paul Wallace. He's Bloomberg's managing editor, countering the government in the Middle East. For now, it seems as if the answer is yes, it is still intact, messy as it is. Late last night, the Israeli military said that essentially said that it had resumed a ceasefire on its part.

1:51The U.S., including J.D. Vance, the vice president, and Donald Trump himself, have been saying over the weekend that these types of incidents that we saw in the last two days, deadly clashes, were pretty much expected. And that this ceasefire was always going to be pretty fragile and messy in the first few days or even weeks. Bloomberg's managing editor, Paul Wallace, says the transfer of humanitarian aid into Gaza, that has resumed. It had been halted after Hamas militants killed two soldiers while Israeli forces launched a wave of strikes across Gaza. Well, John, we now turn to the latest on trade.

2:31President Donald Trump says the U.S. will be fine with China just days before the two sides returned to the negotiating table. And the president spoke to reporters on board Air Force One. One of the things I want is China's going to buy soybeans. I want China to stop with the fentanyl. Very, you know, normal things. I don't want them to play the rare earth game with us. And the U.S. and China will hold talks later this week in Malaysia as a fragile trade truce nears expiration on November 10th. Months of tentative stability have been upended in recent weeks after Washington brought in some tech restrictions and proposed levies on Chinese ships entering U.S.

3:06ports. China responded with parallel moves and outlined tighter export controls on rare earths and other critical materials. And Karen, as investors wait for those talks, fresh data out of China this morning. China says the economy is still on track to reach this year's expansion target, even after reporting the weakest growth in a year, with a boost from booming exports buffering the broad slowdown. Gross domestic product there expanded 4.8 percent, slightly exceeding economists' forecasts. In Asia, John, Japan's Nikkei 225 closed at an all-time high as the ruling Liberal Democratic Party looks set to finalize a new coalition deal.

3:43Now it's fueling hopes that pro-stimulus Sine Takeichi will become the country's first female prime minister. We get more from Alistair Gale in Tokyo. She looks set to win a vote, which we expect to happen in parliament tomorrow, to become the prime minister. And then she can get on with the business of running the country and trying to push through her economic ideas in terms of giving Japan new momentum, both economically and diplomatically. And that's Bloomberg Alistair Gale, who says Takeichi touted plans to inject more government spending into strategic industries like defense, tech, cybersecurity, and nuclear energy.

4:22And in Europe, French bonds are dropping. This comes after S &P Global ratings downgraded its sovereign credit score. This is an unscheduled move that highlights the nation's fiscal problems. It places its debt at risk of forced selling by some funds. France. S &P Global downgraded the country to A-plus from double A-minus, saying the nation's budget uncertainty was, quote, elevated. Well, back here in the U.S., John, the federal government remains shut down, marking the third longest shutdown in U.S. history. The Senate reconvenes and votes later today. And if the vote fails, the shutdown will extend into its third week.

4:59House Minority Leader Hakeem Jeffries told ABC there remains no bipartisan dialogue in the lower chamber. We haven't heard anything from Donald Trump or the Republicans over the last few weeks. They have gone radio silent. And House Minority Leader Hakeem Jeffries says Democrats are steadfast in wanting to extend Affordable Care Act subsidies, and their position was echoed at the more than 2 ,600 no-kings protests across the country this weekend. Republican House Speaker Mike Johnson responded to the demonstrations on ABC's This Week. They needed a stunt. They needed to show if President Trump was a king, the government would be open right now.

5:34Republican House Speaker Mike Johnson added that Republicans will address health care subsidies once the government reopens. And we turn to markets now where the futures are higher as we kick off a new trading week. Investor said it is improving as President Trump sought to ease trade tensions with China. Gold is also, that's on the rise actually, at gold this morning. This is COMEX gold up 1.3 % at$4 ,270 an ounce. In company news, John, Apple's latest generation of iPhones is off to a faster start than usual. According to CounterPoint Research, the iPhone 17 series outsold the iPhone 16 range by 14 percent over their respective first 10 days on sale in the U.S.

6:17and China. CounterPoint Research says the iPhone 17 Pro Max is also seeing strong demand, particularly in the U.S., drawing people who got their last phone during the pandemic to finally upgrade. And Karen, all sorts of problems this morning. Amazon Web Services saying it has suffered a widespread disruption. It's affecting services on other platforms as well. This is the world's largest cloud provider suffering a widespread disruption this morning that degraded services for several companies, including artificial intelligence company Perplexity, as well as Coinbase and Robinhood Financial Markets.

6:52John French luxury giant Caring has agreed to sell its beauty division to L 'Oreal in a$4.7 billion deal. The two companies will also work together to create, develop, and distribute fragrance and beauty products for Caring's top-line luxury brands. L 'Oreal is the world's biggest dedicated cosmetics and beauty group. And let's go to Paris, the Louvre Museum. That's going to remain closed after several priceless artifacts were stolen in a daylight robbery. The French authorities are still searching for the individuals who entered the building on Sunday and took artifacts including tiaras, necklaces, and earrings.

7:30Time now for a look at some of the other stories making news in New York and around the world. And for that, we're joined by Bloomberg's Michael Barr. Michael, good morning. Good morning, Karen. Ukraine President Volodymyr Zelensky says the war with Russia should be frozen along current battle lines before the two sides can enter into peace negotiations, even as Vladimir Putin continues to demand that Ukraine cede the entire Donetsk region in the east to Russia. Zelensky spoke in an interview with NBC's Meet the Press, conducted after his meeting at the White House Friday with President Donald Trump and broadcast on Sunday.

8:05If we want to stop this war and to go to peace negotiations to urgently and in diplomatic way, We need to stay where we stay, not to give something additional to Putin because he wants. NBC's Meet the Press can be heard Sundays on Bloomberg. Meanwhile, President Trump appears to believe Ukraine should hand over its land occupied by Russian soldiers to end the more than three and a half year war there. He spoke on Air Force One. Let it be cut the way it is. It's cut up right now. I think 78 percent of the land is already taken by Russia. you leave it the way it is right now. They can negotiate something later on down the line.

8:50Last week, President Trump was considering selling long-range tomahawk missiles to Ukraine to help house the Russian invasion, but then Russian President Vladimir Putin called him and asked for another summit. A cargo aircraft skidded off a Hong Kong runway and collided with a security patrol car before both fell into the sea early Monday. The two people in the car died while the four crew members on the plane were rescued unhurt. Just days after giving up his many titles of royalty, Prince Andrew is facing yet another problem from his friendship with the late convicted sex offender Jeffrey Epstein.

9:30Prince Andrew is now subject of a police investigation after new allegations he once asked a member of his state-funded security detail to investigate his accuser, Virginia Giuffre. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg, Karen. Thanks, Michael. Time now for our Bloomberg Sports Update. And for that, we bring in John Stashauer. Thanks, Karen. The Seattle Mariners, for the first time in their history, had a chance to win a game that would have sent them to the World Series. But in Toronto, the Blue Jays scored twice in the second inning.

10:04Addison Barger hit a two-run homer in the third. Vladimir Guerrero, junior homer. Toronto won game six, 6-2. Game seven tonight, the 10th in ALCS history. An historic comeback by the Denver Broncos. They trailed the Giants 19-0 in the fourth quarter, 26-8, with less than six minutes to play. A furious rally by the Broncos. They won 33-32. That's your Bloomberg Sports Update. Stay with us. More from Bloomberg Daybreak coming up after this. This is Scarlett Fu. And I'm Paul Sweeney. inviting you to join us for the Bloomberg Intelligence Podcast. Every day, we harness the power of Bloomberg Intelligence to bring you deep dives into the companies that are moving markets from publicly traded companies like Apple to those that are privately owned but known by everyone on Earth like OpenAI.

10:50Now, I helped to build Bloomberg Intelligence to what it is today, Scarlett. And now, our analysts are the best in the world, covering more than 2 ,000 global companies. That is your legacy, Paul. And we speak to those in-house experts every day. They are Bloomberg's go-to authorities on sectors, companies, and legal processes. And we do it all live each weekday, then bring you the best conversations in our daily podcast. So be sure to search for Bloomberg Intelligence on YouTube, Apple, Spotify, or anywhere else you listen. Listen in the afternoons on your way home from work to catch up on the market news you miss during the business day.

11:21That is the Bloomberg Intelligence Podcast. I'm Scarlett Fu. And I'm Paul Sweeney. Subscribe today wherever you get your podcasts.

11:32Coast to Coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg.com and the Bloomberg Business App. This is Bloomberg Daybreak. Good morning. It is coming up to 513 on Wall Street. I'm John Tucker along with Karen Moscow. Israel launching strikes against Hamas in Gaza and suspended aid shipments yesterday after blaming the Middleton Group for an ambush that killed two soldiers in the southern part of the Strip. Let's get the very latest right now. Ethan Bronner is the Bloomberg senior editor, and he's joining us from Tel Aviv this morning. Ethan, thanks so much for being with us.

12:08Is the ceasefire intact at this point? It is intact, but of course it's been a shaky ceasefire from the first moment, and it gets shakier every day. Yesterday's exchanges were pretty rough. There were a bunch of attacks by Hamas guys on various Israeli troops and an APC and so forth. And then the Israelis did dozens of sorties to fight back and send a message, and a bunch of people died. So it was pretty rough, but they both said they're trying to respect it. And we do have two American officials who just landed who are going to try to keep it going. Is the Hamas leadership speaking for everyone within Hamas or their splinter groups who disagree with the ceasefire or the terms that they're trying to impose?

12:59That's a great question, and we don't really know the answer. The Hamas military leadership said that it knew nothing about the attacks. I will point out that for two years before the October 7th attack by Hamas, its leadership repeatedly said it wanted only peace and had no interest in military action, and then carried out the most brutal attack on Israel in its history. So that doesn't mean that they always don't tell the truth, but I would take with a grain of salt what they say. On the other hand, President Trump said, hey, could be, you know, things are kind of difficult down there. maybe the leadership wasn't aware of what was going on.

13:38It's possible. I mean, if there is a split within the organization between the leadership and certain factions, how do you achieve anything in terms of, like, peace? No, that's exactly right. I mean, we're dealing with a very, very complicated situation in which it's not at all clear that even the leadership has laid out what it wants in a way that the other side can accept. Both sides have kind of accepted this idea of an exchange of hostages for prisoners and that the rest will then be negotiated. And that's where we stand with, you know, totally opposite goals. The Israelis want Hamas out of power.

14:17Hamas wants to stay in power and wants Israel out of Gaza. So it's a tough not to crack. You mentioned the hostages. Well, at this point, the hostage bodies. have they all been returned? What's the status there? No, about a dozen have been returned and about 16 remain. And this is another good example of what to believe, right? So Israel says that Hamas knows where almost all of them are, maybe not all 16, but another 10 or 12, and they could easily return them. Hamas says, my God, are you kidding me? This place has been turned upside down by all those bombings. We have lost track of them and we need time and we need equipment and i don't know who's telling the truth and where do things stand with aid getting into uh gaza so it slowed down i mean israel didn't officially stop it but then it sort of acknowledged that because of the battling yesterday it wasn't safe to do it uh and now it says it's back up um you know uh some days ago before this began, there were 600 or 800 trucks coming in, which is a lot more than the 300 from before, but not quite as much as the UN says is needed of about 1 ,000.

15:28I don't know how many hundreds are coming in today, but the claim is that they're back on track. So aid is theoretically starting to go back in, yes. Where do we stand with the peace plan and what has been agreed to? And we've got like 30 seconds. Okay. Well, we've agreed to nothing other than the exchange that's occurred. There is this 20-point plan that the Israelis have been enthusiastic about that Hamas has said yes but to, and I'd say about 15 of those points are still to be worked out. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.

16:08Look for us on your podcast feed by 6 a.m. Eastern each morning on Apple, Spotify, or anywhere else you listen. You can also listen live each morning starting at 5 a.m. Wall Street time on Bloomberg 1130 in New York, Bloomberg 99.1 in Washington, Bloomberg 92.9 in Boston, and nationwide on Sirius XM Channel 121. Plus, listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Auto interfaces. And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it, in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long.

16:47I'm Karen Moscow. I'm John Tucker. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak. I'm Matt Miller. And I'm Hannah Elliott, inviting you to join us for the Bloomberg Hot Pursuit podcast. Every week we bring you news and industry insight on everything cars. And we do a whole lot more than just talk about cars, Matt. we actually get behind the wheel of basically every latest model, especially the luxury ones and the sports cars, direct from the showroom floor. It really is remarkable how many cars we have access to. I feel a little bit guilty about it, but everything from$40 ,000 EVs to exotic half-million-dollar supercars.

17:29We also speak with the insiders who shape the automotive industry from the top CEOs and collectors to visionary designers and racing champions. Search for Bloomberg Hot Pursuit on YouTube, Apple, Spotify, or wherever you get your podcasts. Maybe you listen while you're on your weekend drive, maybe go into cars and coffee. Listen to us talk about what we are driving this week. That's Bloomberg Hot Pursuit. I'm Matt Miller in New York. And I'm Hannah Elliott in Los Angeles. Subscribe today wherever you get your podcasts.