On today's podcast:
1) Israel Hones Plans to Attack Iran After Attempt on Netanyahu
2) Stocks Pause Gains With Focus on Busy Results Week
3) Treasury 10-Year Yields May Hit 5% in Six Months, T. Rowe Says
Bloomberg Audio Studios, Podcasts, Radio News.
Good morning, I'm Nathan Hager.
And I'm Karen Moscow. Here are the stories we're following today.
Karen, we begin this morning with the latest developments out of the Middle East. Israeli Prime Minister Benjamin NETANYAHUO has held a series of meetings planning the next attack on Iran. That's after a Hesbala drone exploded next to his private home. We get more from Bloomberg's Patrick Sykes in the Middle East.
The timeline to be clear, I think is still unclear, but that series of meetings over the weekend does suggest that it's firmly back on the agenda in the security circles. There were some leaks over the weekend from the US side suggesting that drones would be involved. That would tally with the last sort of back and forth earlier this year in April, when Israel's thought to have used drones to target Iranian radar facility. And then the only other lineup over the weekend was the Iranian Foreign minister calling any potential attack from Israel against her on a red line and promising to reply in kind. So both sides keeping up the rhetoric, but it does remain to be seen so when exactly it will take place?
Bloomberg's Patrick Sike says Israel's killing of Hamas leader yach Ya sin War was viewed by many as a potential turning point, but in the days since combat has intensified, with Hesbala and.
Hamas now to the latest in the presidential race, Nathan. With fifteen days until the election, former President Donald Trump held a town hall in Lancaster, Pennsylvania. He addressed a new line of attack from a Vice president Kamala Harris that he's getting tired on the campaign trail.
I've done cognitive tests.
I've done him twice and I aced both of them, and the doctor in one case said I've never seen anybody asom They've never seen anybody.
As but I'd like to see cognitive.
Tests for anybody running for president or vice president.
Later today, Trump will hold a rally in Greenville, North Carolina, after heavily criticizing the Biden administration's response to Hurricane Helene. He has a series of splashy media events planned in the campaign's final days, including a rally at Madison Square Garden this Sunday.
Well Meanwhile, Karen Vice President Harris, visited a black church in Stonecrest, Georgia on Sunday and gave an interview to the Reverend Al Sharpton on MSNBC. She was asked about the former president's quote street talk on the campaign and use of vulgar language to describe her record as vice president.
The President of the United States must set a standard not only for our nation, but understanding the standard that we as a nation must set for the world.
Kamala Harris predicted Trump's lack of decorum would be a disqualifier with voters. New federal campaign finance filings show the Harris campaign raised two hundred and twenty one point eight million dollars in September. That's more than three times the sixty two point seven million raised by the Trump campaign. The latest Real Clear Politics average of national polls shows the race still neck and neck, with Harris leading Trump by just nine tenths of one percent.
Let me turn to the markets now, Nathan and Wall Street gets back to work with stocks in record territory. In fact, the S and P five hundred is coming off it's forty seventh record close of the year. Kamal Batia, president and CEO of Principal Asset Management.
Look, I think the markets have very powerful momentum right now, not just here but also other parts of the world. So I do think the market conditions are perfect for equities to do well here, although the valuations are getting rich.
Principal Asset Managements Kamal Batia notes the S and P five hundred has risen for six straight weeks.
And well, that's raised concerns over valuations. Karen Muddy Waters Capital founder Carson Block says most investors would now do better to just buy the biggest US stocks.
There's a FED put.
There's always a FED put, you know. Does there come a point in time when the system breaks and the FED can't fix it? Theoretically yes, in our lifetimes.
I don't know.
So I think for now it probably pays not the thing too much, just close your eyes and buy, you know, probably mag seven.
Muddy Waters Capital founder Carson Block also tells Bloomberg the China stock market is uninvestable.
Well, Nathan. The parade of earnings continues, with the number of high profile companies reporting this week, including several Down members. We get a preview with Bloomberg's Charlie Pellett.
We'll be getting earnings reports this week from AT and T, Boeing, and Coca Cola. It questions about whether the outlook for corporate profits justifies current valuations. Quincy Crosby is chief Global strategist at LPL Financial.
This is a market that really is discerning and will punish any slight, any slight hint in the guidance that doesn't meet ultimately the valuations.
Also reporting this week ge Tesla, American Airlines and Southwest Airlines. We'll also hear from UPS and Norfolk Southern in New York. Charlie Pellett, Bloomberg Radio.
All right, Charlie, thank you. The S and P five hundred decade of big gains is about to come to an end. That is, according to strategists at Goldman Sacks. They say US stocks are unlikely to sustain their above average performance as investors turned to other assets, including bonds, for better returns. Goldman predicts the SMP will post an annualized nominal total return of just three percent over the next ten years. That compares with thirteen percent in the last decade and a long term average of eleven percent.
Well Nathan and company news shares it boeing up almost four percent this morning. The Planemaker and the union representing thirty three thousand striking members hammered out a tentative new accord that not just a pay by thirty five percent over four years, but the hourly workers had the final say with their vote on Wednesday, and approval is far from certain. They overwhelmingly rejected a deal in September.
Look for a jump in Treasury yields, Skaren. That's the call out a t ROW price. The firm says the tenure Treasury will test the five percent threshold in the next six months off the back of rising inflation, next PIT dictations, and concerns over US fiscal spending. The call stands out against market expectations of lower yields after the Fed cut rates for the first time in four years last month.
Unnice time offert 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 Laher.
Michael, Good morning, Good morning, Karen.
Hurricane Oscar made landfall and Cuba last night, bringing powerful winds across the island, which is already experiencing an island wide power outage. Senior hurricane specialist Brad Reinhardt, What's.
Gonna be the biggest problem going forward is the heavy rainfall associated with OSCAR. So, I mean it could produce rainfall amounts of six to twelve inches with isolated amounts up to eighteen inches across eastern Cuba, and so that's going to pose the potential for flash flooding and mudslides, particularly over areas of mountainous terrain.
Oscar's maximum wind speeds were eighty miles an hour when he made landfall. Investigation has underway in Georgia, where a catastrophic dock collapse took place on an island south of Savannah, killing at least seven people. Several more were injured. McIntosh County, Georgia official Kate Kerwaki says that President Biden has called to offer his support.
I've personally had telephone calls from many elected officials from every sector, beginning with our president on down to fellow commissioners in our neighboring communities.
Officials say the ferry bridge was relatively new. It was built at the end of twenty twenty one, which raises a lot of questions about why it would fail so soon. A helicopter crashed into a radio tower in Houston, Texas. The pilot and three passengers were all killed when the chopper brought down the tower in a Houston neighborhood. Authorities and witnesses say the fiery aftermath and debris spread across two to three blocks.
The fire, everything was just someone like, that's what I thought.
The first thing I thought it with the airplane Houston.
John Whitmyer, the.
Residents are secure and safe, but we have a terrible.
Accident see multiple fatalities. Police say a child was among the four killed. President Joe Biden's administration unveiled a proposal today that would require private health plans to cover over the counter contraception at no additional cost to consumers. With the FDA's approval of Ophil, the US joined more than one hundred countries where birth control is already available without barriers such as doctor's appointments or parental approval. Global News twenty four hours a day and whenever you want it with the Bloomberg News. Now, I'm michae La Barr, and this is Bloomberg Care.
All right, Michael Barr, thank you time Now for the Bloombergy Sports Update with John stash Hour. John good Morning.
Didn't want to care of these Mets provided their fans with some great womans the past month, but the season ended in Los Angeles. The Dodgers won ten and their four series wins. LA outscored the Mets thirty seven to seven. The LCS MVP with shortstop Tommy Edmund hit over four hundred and in Game six, Edmund had a two run double the first inning a two run homer in the third. Peede Alonzo reflects on what the Mets still accomplished.
There's so much for us to be proud of what we've overcome. How we became like brothers. I mean we were just like we accepted everyone for who they were. We came together, we gelled, We overcame so much adverseitee.
It'll be just an interesting offseason for Alonzo. He'll be a free agent. Now get ready for the Aaron Judge Versus show. Hey O Tani Hype. Yankees and Dodgers start the World Series Friday in LA Week seven dugs for the Jets and Giants in Pittsburgh, Steelers scored the last thirty one beat the Jets thirty seven to fifteen.
Russell Wilson debuted.
For Pittsburgh, through for two touchdowns, ran for another two more Aaron Rodgers interceptions. That's six in the last three games as new teammate DeVante Adams a non factor in the Jets have lost four in a row. They're two and five, as are the Giants, who are zero and four. At Homely Glee scored one touchdown in four home games. Philadelphia, led by the ex Giants sake one. Barkley won twenty eight to three. Barkley at one hundred and seventy six yards exactly one hundred more than the Giants ran four Eagles at eight sacks in London. Jacksonville sent the Patriots to a sixth straight loss, thirty two to sixteen. The Commanders a forty to seven route of Carolina. The Super Bowl rematch, like the last time at Kansas City, win over the forty nine Ers twenty eight to eighteen. The Chiefs were six to oher with Detroit to win at Minnesota, case the only team still undefeated. The decisive Game five of the WNBA Finals went to overtime. The Liberty prevailed sixty seven to sixty two over Minnesota, first championship in franchise history.
JOHNS.
Stanshawad Bloomberg Sports, Karen and Eda.
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Good morning. I'm Nathan Hager. Israel is honing its attack plan against Iran, nearly three weeks after the country's massive ballistic missile strike against Israel earlier this month. The latest provocation a Hezbola drone attack that breached Israel's air defenses and exploded near Israeli Prime Minister Benjamin Netanyahu's home over the weekend. For the very latest, we were joined now by Bloomberg News Israel Bureau chief Ethan Brunner in Tel Aviv. Ethan, good morning. So what is the latest? I understand Israel has been going after Hesbola financial institutions in its latest strikes.
That's right, Nathan, they've been.
They've they announced late last night our time that they were about to start doing so, and urging civilians to live near the buildings that housed these Al Khard al Hassan Association.
Institutions to get out.
Of the way, and then they began a pretty heavy bombing campaign against them. They argue that this quasi bank is in fact the way in which His Blood gets its money, and in fact, the US Treasury did sanction that organization eight years ago.
So there's some hitt.
So what does this tell us, then, ethan, about where Israel could be going now against Iran. It's been nearly three weeks since that ballistic missile strike, and now this concern raised with the latest potential attack coming very close to Israeli Prime Minister Netanyahu himself.
Yes, well, of course it was a His Blood drone, you know, not an Iranian drone. But we all know, at least Israel says, and we accept on some level that Iran is behind his bla very heavily, both in terms of arms and money. Iran did distance itself from that attack and is trying to keep in theory, you know, calm things down. But there's no question that Israel is planning some severe counterattack against Iran.
I don't think it's going to come the next day or two.
We do have Almos Hawksteen, the American envoy to Lebanon, in be route today, and we do have Tony Blink and the American Secretary of State do here tomorrow. So I think that there'll be some diplomatic activity for the next couple of days. And don't forget that the Americans provided the Israelis with anti ballistic missile defense system which is now in place in Israel. So everyone's getting ready for something, that's for sure.
Yeah.
Have we seen any signs at this point, Ethan, that this round of this latest round of diplomatic activity has had any impact on what the Israeli security cabinet might be planning at this point.
It's a little unclear. They had a six or seven hour meeting late last night and into the morning. Not that many details have emerged as we underst stand it, They discussed a bunch of things, which does tell us a little something about the potential for diplomacy. There does seem to be an appetite. I don't know that it is overwhelming in the cabinet for some kind of more regional deal that involves the hostage is held by Hamas in Gaza, the situation at othern Elebanon by his Bellah, and you.
Know, and the Houties and Iran and so on. So there was some notion of some kind of a broader deal, but it's not very clear what that would mean at this point.
Does that idea of a broader deal imply that the death of Hamas leader Sinwar has had some impact that it could potentially be that pivot point that a lot of people were talking about before this latest drone strike on Prime Minister Ntsagna, who's home.
Yes, I think it does now that, to be fair, came on top of the killing of Nostrala, the head of Hasballah. Of course those page are bombings and so on. So there was a sense in the last month, shall we say that Israel, which had felt very much on its back foot, had gotten back on the horse and was in a position to drive the story, drive the diplomacy more in its favor. So and then with the killing of Sinhwar, I agree with you, this seems like a moment when a number of israel Is again not all, not those necessarily far to the right of Natanyahu, but many would like to say take the win, let's get something going and get these sasages home, and maybe we have denatured enough of Hamas to not continue to have to go to war against it continually.
Unfortunately, Ethan, we've only got about twenty seconds left. But we heard former President Trump say he's spoken with Prime Minister Natanyahu. How is US politics entering into all of this if at all?
Look, I think it is to some extent. I mean, we probably need more than twenty seconds to really analyze that. But yeah, no doubt that there would be a difference between between a Trump and a Harris victory from the point of view of Israelis. But I do think both potential administrations are likely to want to not be very aggressive out here, look more domestically, and I think the Israelis are.
Aware of that.
This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond.
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And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Day.
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