October 9, 2025 • 20 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) Israel and Hamas have agreed to terms for the release of all hostages held by the Palestinian militant group in Gaza, a major breakthrough in the US- and Qatari-brokered negotiations to end their two-year war.
(2) French President Emmanuel Macron said he’ll name a new prime minister by Friday evening, having for the time being avoided the need to call a snap election that would have deepened the political chaos in France.
(3) China has tightened curbs on rare earths to include items manufactured abroad, adding a potentially complex layer of restrictions to an industry that’s been a source of intense trade friction between Beijing and Washington.
(4) HSBC Holdings Plc plans to take Hang Seng Bank Ltd. private in a deal that values the lender at $37 billion, ramping up its exposure to Hong Kong as the financial hub attempts to bounce back from years of economic turbulence.
(5) With Britain’s venerable Conservatives desperate to avoid political oblivion, delegates at the party’s annual conference found themselves prompted to seek guidance from a prime minister who left office 35 years ago. “Ask the Iron Lady,” urged a poster from the Conservative Women’s Association.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:10):
This is the Bloomberg DAYBAQ podcast. Good morning, It's Thursday,
the ninth of October. I'm Caroline Hebge in London. Coming
up today, Israel and Hamas agree a deal to secure
the release of all hostages held in Gaza. In a
significant breakthrough, French President emmanue and Macon says he'll name
a new prime Minister by tomorrow evening. Plus why the
(00:31):
unquenchable global demand for AI chips is now counting on
a small European city to keep up its momentum and
the pressure is growing to make it work. Let's start
with a roundup of our top stories. Israel and Hamas
have agreed a deal for the release of all hostages
held by the Palestinian militant group in Gaza. The phase
(00:52):
agreement would see Israel release almost two thousand Palestinian prisoners
and withdrawing troops in Gaza to an agree read uponline,
It marks a major breakthrough in the US Katari broken
negotiations to end their two year war. Speaking on Fox
News's Hannity's Show after the agreement was announced, President Trump
(01:14):
praise the wide range of countries who helped to achieve
the deal.
Speaker 3 (01:19):
The whole world came together. To be honest, so many
countries that you wouldn't have even thought of it, they
came together. The world has come together around this deal,
and that's something I would say that without that wouldn't happen.
So many countries that you wouldn't have thought of have
wired their best wishes and their commitment to do whatever
(01:39):
is necessary. The country surrounding of all signed. I mean,
they're all signed up.
Speaker 2 (01:45):
The US president speaking there to Fox News, the deal,
we'll see Hamas free about twenty people who are still
alive who were taking during the October twenty twenty three attack,
alongside the remains of more than two dozen people who
died in captivity. Meanwhile, aid to Gaza would be resumed
as part of the deal. If the agreement holds, it
(02:06):
will mark a major step towards ending the conflict. The
deal would also be a major diplomatic victory for Trump,
who had presented a twenty point plan aimed at ending
the conflict last week. The statement from Hamas also included
an extraordinary shift in tone, adding that the group valued
quote the efforts of US President Donald Trump Wyel al
(02:31):
Zayat is an associate fellow of the Middle East Institute
and says this could be a major turning point in
the war.
Speaker 4 (02:39):
Based on what the president of the American President Dealtrup
has said and some other countries have confirmed, it looks
promising and it would be a huge deal. This is
the biggest breakthrough since the conflict began.
Speaker 2 (02:51):
Whyell al Zayat speaking there, But many questions remain about
whether ac spark can hold and the next steps in
the peace plan. To mark two years since Hamas's October
seventh attacks on Israel which triggered the conflict, killing one
thy two hundred people and abducting another two hundred and fifty.
Around sixty seven thousand Palestinians have died in the subsequent conflict,
(03:14):
according to the Hamas run Health Ministry. More than four
hundred and fifty Israeli soldiers have also been killed. So
that's what is happening in the Middle East. Let's go
to France. Next to Emmanuel Macon says that he will
name a new prime minister by tomorrow evening. That's after
two days of crunch talks with political leaders, which were
led by outgoing Prime Minister Sebastian Locorno aimed at building
(03:37):
support to pass a budget. Speaking to France two television
yesterday evening, Locorno said there's potential for compromise in Parliament
after the talks.
Speaker 5 (03:47):
Well, what I can say tonight after my discussions is
there is an absolute majority in the National Assembly which
refuses a new dissolution. I feel a narrow path is
at all possible. It's difficult, but I told the President
of the Republic the prospects of new snap legislative elections
are receding, and I think the situation allows for the
(04:09):
appointment of a new prime minister within the next forty
eight hours.
Speaker 2 (04:13):
Out going French Prime ministers Sebasielacorno speaking there, he also
said that the next premiere should have no ambitions to
run for president in twenty twenty seven. Failure by a
new prime minister to former cabinet would mean that emmanue
and Macon would either have to call a parliamentary election
a point yet another candidate, or resign himself. China has
(04:36):
tightened its export controls on rare earths to include items
manufactured abroad. The move expands restrictions on an industry that
has fueled trade tension between Beijing and Washington. The country's
Ministry of Commerce has said that exporters of items that
use rare earth sourced from China will now need to
obtain an export license. China is also likely to block
(04:58):
exports to foreign arms manufacturers and some semiconductor firms. Beijing
has previously used its dominance of the sector as leverage
and negotiations with the US. These new restrictions come just
weeks before present Trump and Jijingping are due to meet
in person to strike a broader trade deal. HSBC plans
(05:19):
to take Hang Seng Bank private in a major bet
on the future of Hong Kong. The London based bank
is spending fourteen billion dollars to buy the third of
Hang Seng that it doesn't already own. HSBCCO Georgelle Hedri
says it will deliver shareholder value.
Speaker 6 (05:38):
This is an investment for growth. This is an investment
in Hong Kong, one of our home markets and one
of our key markets. Hangkseng is an iconic bank in
Hong Kong. It's a leading local bank. It has a
fantastic customer franchise, have a very strong financial position and
the idea here is to effectively take private Hanksyng the HSBCCO.
Speaker 2 (06:02):
They're speaking exclusively to Bloomberg. The deal values hang Saying
at thirty seven billion dollars. It comes as Hong Kong
is trying to re emerge from China's real estate slump.
Shares in Hang Seng Bank rows twenty six percent, while
HSBC's shares fell six percent in early trading in Hong Kong.
Here in the UK, Conservative Party leader Kemy Baidenog is
(06:25):
promising to cut taxes on house buying in an attempt
to change the fortunes of her party. The pledge to
cut stamp duty was a surprise announcement at the end
of her party's and newal conference. The Tories have seen
their popularity collapse following fourteen years in government until twenty
twenty four, with some warning that they may cease to
exist as a major party. Baidenock says she'll change that.
Speaker 7 (06:50):
We need bold ideas. We need a positive vision for
this country and a plan to deliver it. We need
a new approach, a new approach that delivers a stronger
economy and stronger borders. We owe that to our children.
Speaker 2 (07:04):
Bade Knox appeal to the party faithful comes as the
polls put Conservatives in fourth place. The historic full form
grace has led to many people questioning how long the
current leader can remain in her position. Those are some
of our global and top news stories this morning. In
terms of the markets, let's get to those. So the
(07:24):
dollar right now is weakening two tenths of one percent.
We've also seen gold pull back down one percent yesterday,
and the gold spot price is down two tenths this morning,
after of course hitting a record high above four thousand
dollars an ounce. But it's also oil that is edging
lower after the peace deal the first phase at least
(07:45):
of a peace deal in the Middle East bring crew
futures at the moment down four tenths at sixty six dollars.
The bow US benchmarks stock benchmarks that is closed at
yet another record. Yesterday, the Nasdak had its best session
in seven weeks. The AI boom still firmly in place.
Stop futures though this morning for the US a little
(08:05):
bit positive. We're up by bou to tenth of one percent,
less than a tenth of one percent for the S
and P five hundred USOX fifty futures though, are in
the red and this as we get got fed minutes yesterday,
caution over rate cuts because of the warriors around inflation, tenure,
treasure yield steady at four twelve. So those are the markets.
This hour in a moment will bring you more on
Macwol's plan to reappoint a new prime minister by tomorrow,
(08:28):
plus why the global AI boom hinges on ASML's huge
expansion in one small Dutch city. Now let's go to
our top story.
Speaker 8 (08:39):
Though.
Speaker 2 (08:39):
Israel and Hamas have agreed the terms for the release
of all hostages held by Hamas in Gaza. This is
part of a US and Katari broker deal to end
their two year war. Joining US now as Bloomberg. Stuart
Livingston Wallace, who heads our coverage of the Middle East
and North Africa. Stuart, good morning. What exactly has been
agreed in terms of Israeli hostages and troops and aid
(09:04):
for Palestinians and Palestinian prisoners.
Speaker 8 (09:06):
Yes, I mean, as you said, it is very much
phase one, but it's a very significant change in the landscape,
you know, and certainly the most consequential agreement we've had
in months, arguably since the war began a couple of
years ago. So what seems to have been agreed to,
as you said, this exchange of the remaining hostages, both
those that are alive and those that are already deceased,
(09:29):
in return for a large number of Palestinian prisoners, and
based on Trump's truth social posts, there will also be
a withdrawal by Israeli troops and agreed uponline. Now the
fine details of that, I think are still to be agreed.
We anticipate that the Israeli Cabinet will be meeting later
today to sign off on this, and I think, you know,
(09:52):
one potential area of contention will be just who is
on the Palestinian prisoner list, because I know some of
the names that had been put forward earlier would be
would be very controversial as far as the israel Is concerned. However,
you know, I think there is great optimism from all
sides that they are making headway, and certainly, again based
on Trump's comments, he anticipates that the hostages would be
(10:15):
out probably on Monday. You know. Obviously will take some
time to create a safe corridor for them to come out,
and of course they will be we presume in different
locations and held by different groups within Gaza, so you know,
it will probably take some time to get done, but again,
a very very consequential change in the landscape.
Speaker 2 (10:35):
Yeah. Indeed, and so President Trump speaking to Fox News
saying he is quote very confident there'll be peace in
the Middle East. I mean, could it be? Is this
what people think in the region? Could this be the
end of what has been a devastating conflict?
Speaker 8 (10:52):
I mean, I think certainly, you know, in terms of Gaza,
the prospects for that are certainly looking a lot more
positive than they have done for a couple of years.
In terms of the wider Middle East, you know, there
are some more serious issues and far more widespread thinking,
particular about you know, Syria, Iraq, Iran, Lebanon, so on.
You know, those are very complex issues as well, but
(11:12):
specifically with regards to Gaza, at least on the face
of it, appears that we could potentially be moving into
a much more peaceful phase. But as you know, everyone knows,
there are a great many issues to resolve. They're not
least the reconstruction, the future governance, the disarmament of her mass.
You know, the list is very, very long, and it's
going to be a very difficult process to get done,
(11:35):
but this phase one certainly sets it on that path,
and I think there is good will from all sides
to try and get something done in the next several months.
Speaker 2 (11:46):
What has been the reaction in the region, because we
mentioned that it's also a Katari broker deal, What has
been the response in the region to this sort of
first phase.
Speaker 8 (11:58):
Again, I think very very pol you know, and there
has been a big push, certainly from the Arab states.
I mean noticeably cat Are being a very important mediator
in this, butan Egypt as well, the UAE, Saudi Arabia.
You know. The list is very long, and I think
to some extent, you know, the path that we saw
(12:18):
with the Abraham Abraham calls that were signed in Trom's
first term, I think it desires to return to that
as as kind of the path forward of some sort
of reconciliation and joint recognition and are more peaceful approach
to regional affairs. And I think that's largely based on
two things. One is, most of those states have very
(12:39):
ambitious goals in terms of transforming their economies away from
sort of being fossil fuel led to a far wider
industrial base, and they can't do that in an environment
where there is constant warfare, which is exactly what we're
seeing over the last couple of years, you know, very
widespread conflicts. So a great deal of optimism, I think
(12:59):
a great deal of hope that again this is the
start of something far wider, far more consequential for the
region and in terms of generating that prosperity that they're
all after.
Speaker 2 (13:10):
Indeed, so potentially a very significant breakthrough in the Middle East. Stuart,
thank you so much for being with us. That is
boom Both Stuart Livingstone Wallace, who heads our coverage of
the Middle East, thank you so much for being with us.
Stay with us. More from Bloomberg DAYBAQUB coming up after this.
So also want to think about what's happening in France
and political term are there. There is now a new
(13:32):
deadline emmanue and macall says that he'll name a new
prime minister by tomorrow evening. That's after outgoing Premier Sebastie
Lacorneo signaled progress with other parties in two days of
last ditch talks, and our own Stephen Caroll is in
Paris for us this morning. Has been there for the
last few days, really keeping close tabs on this good
morning Stephen. Why is Mackwell waiting another forty eight hours
(13:55):
then to name his next prime minister.
Speaker 9 (13:58):
Well, the key thing here is that Emmanuel mac krank
is going to name another Prime minister. That's the conclusion
that Sebastiana Corney was able to come to after two
days of these desperate negotiations with political parties, both allies
and opposition. Now, the message that he delivered in his
TV interview last night is that there was a majority
of MPs who don't want new elections to the National Assembly.
(14:19):
He also says he believes there is a platform of
stability those are the words he used, and a way
forward that could allow a budget to be passed by
the end of the year. So that means elections look
to be off the table for now. The President will
try again with another Prime minister to get a budget
agreed on the basis set by these talks. That would
be the sixth Prime minister in two years. As for
(14:41):
the timing, it does give to Alaniel Macron some time
to come up with someone to do this job, but
it also actually plays around a major event that's happening
in France here today there's a state ceremony to honor
the late Justice Minister Robert Madantere for his work on
civil liberties, including the abolition of the death penalty forty
four years ago. Today, that's a huge state of event
involving the president and they want to separate the politics
(15:03):
from that event happening today.
Speaker 2 (15:05):
So who do you think it could be then to
be the next prime minister and what sort of budget
then would that person actually be able to pass?
Speaker 3 (15:13):
Well.
Speaker 9 (15:13):
Look, sebastohna corney was asked about this repeatedly last night.
He said that it was up to the president to decide.
He said that it shouldn't be anyone who has ambitions
for the presidential election in twenty twenty seven, pointing us
towards this idea of maybe a technocratic figure. That's something
that he says is a potential solutions. That's one option.
One thing we know is that it won't be sebastianna'corneyo.
(15:34):
He said that his mission is over as far as
he's considered, he does not want to be Prime Minister anymore.
As for the budget, La Courney says there will be
a plan presented on Monday that is in keeping with
the constitutional timetable. Now, he said that it won't be
a perfect plan. There'll be lots to debate, and he
again said the general agreement among parties is that the
deficit would be under five percent. That's something for markets
(15:57):
then to take heart from. But building a censors on
a budget now seems to be centering on the thorny
political issue of pension reform. Freezing the current changes that
raise the retirement age is a key demand of left
wing parties. It comes at a huge financial cast at
least three billion by twenty twenty seven, according to Lecornu.
He says that's an area for the next prime minister
to negotiates, but he said it will be a key challenge. Again,
(16:20):
he warned if there's no budget, he described it as
being absolutely dramatic consequences for France.
Speaker 2 (16:27):
Stephen, thank you. Now, I want to get back to
the AI story. ASML is planning a major expansion in
Eindhoven in the next six months. Bloomberg's Amsterdam bureau chief
Dasher Afanasieva, is with us this morning. Good morning, Dasher,
what does ASML want to do in Eindhoven, Hello.
Speaker 1 (16:45):
It wants to build a massive, a massive expansion site.
The total area is around one hundred hectors and there.
It wants to use the site to help it boost
production and to grow sales to as much as sixty
billion euros by twenty thirty.
Speaker 3 (17:02):
Now.
Speaker 1 (17:02):
A lot of those sales will be its most extreme,
most expensive, most advanced sophisticated extreme ultraviolet machines, which are
an integral part of the AI food chain because they
are have greater computational ability and are able to process
quicker and cheaper than other chips. And ASML is sort
(17:25):
of the bottleneck because it's the only company in the
world that makes these most advanced lithography machines to make
these chips.
Speaker 2 (17:34):
So how are they going to deliver on that expansion.
It needs the support of government, of local people, workers, surely, absolutely.
Speaker 1 (17:43):
The company has been wanting to do this for a while,
but it can't do it alone because the city and
oven is very densely populated, like a lot of the Netherlands,
there's already kind of a shortage of housing, a shortage
of skilled workers, so it really needs the support of
the whole kind of ecosystem and that's why the government,
(18:06):
both local and national, have dedicated around four point one
billion euros together. There's a bit from private companies in
there as well to drive this expansion, to improve housing,
to improve infrastructure, to improve education. But there's still so
much to do. For example, the area where ASML plants
(18:26):
to expand currently has no electricity, and as you can imagine,
that's that's quite crucial, and everything moves, you know, maybe
what feels for corporate like quite a slow pace because
you have to get all these approvals, you have to
get everybody on board, and whether Mayor of Eindoven told
us is what they don't want to do is to
(18:48):
kind of be rash about it and end up with
a silicon valley, which you know, in his opinion, is
a very unequal place to live and the only people
that can afford to live there are kind of very rich.
Speaker 8 (19:01):
Hm.
Speaker 2 (19:01):
That's interesting, But obviously it's massively important for AIRSML and
also for Europe, given it's the largest company by stock
market value in Europe.
Speaker 1 (19:09):
It is the it is the largest company by stock
market value, and that reflects just what a bottleneck, what
sort of a lynch pin it is in this very
very complicated global chip making process, so we don't have
massive chip makers, but ASML is the most relevant thing
we've got, and they've you know, back into the two
(19:31):
thousands they made this euv bet and now they've invested
into an AI company, so it's very much front and
center of their mind.
Speaker 9 (19:41):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (19:48):
Look for us on your podcast feed every morning, on Apple,
Spotify and anywhere else you get your podcasts.
Speaker 9 (19:54):
You can also listen live each morning on London DAB Radio,
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Speaker 2 (20:00):
Our flagship New York station is also available on your
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Speaker 9 (20:07):
I'm Caroline Hepka and I'm Stephen. Carol. Join us again
tomorrow morning for all the news you need to start
your day right here on Bloomberg Daybreak Europe
Bloomberg Audio Studios, podcasts, radio news.
Speaker 2 (00:10):
This is the Bloomberg DAYBAQ podcast. Good morning, It's Thursday,
the ninth of October. I'm Caroline Hebge in London. Coming
up today, Israel and Hamas agree a deal to secure
the release of all hostages held in Gaza. In a
significant breakthrough, French President emmanue and Macon says he'll name
a new prime Minister by tomorrow evening. Plus why the
(00:31):
unquenchable global demand for AI chips is now counting on
a small European city to keep up its momentum and
the pressure is growing to make it work. Let's start
with a roundup of our top stories. Israel and Hamas
have agreed a deal for the release of all hostages
held by the Palestinian militant group in Gaza. The phase
(00:52):
agreement would see Israel release almost two thousand Palestinian prisoners
and withdrawing troops in Gaza to an agree read uponline,
It marks a major breakthrough in the US Katari broken
negotiations to end their two year war. Speaking on Fox
News's Hannity's Show after the agreement was announced, President Trump
(01:14):
praise the wide range of countries who helped to achieve
the deal.
Speaker 3 (01:19):
The whole world came together. To be honest, so many
countries that you wouldn't have even thought of it, they
came together. The world has come together around this deal,
and that's something I would say that without that wouldn't happen.
So many countries that you wouldn't have thought of have
wired their best wishes and their commitment to do whatever
(01:39):
is necessary. The country surrounding of all signed. I mean,
they're all signed up.
Speaker 2 (01:45):
The US president speaking there to Fox News, the deal,
we'll see Hamas free about twenty people who are still
alive who were taking during the October twenty twenty three attack,
alongside the remains of more than two dozen people who
died in captivity. Meanwhile, aid to Gaza would be resumed
as part of the deal. If the agreement holds, it
(02:06):
will mark a major step towards ending the conflict. The
deal would also be a major diplomatic victory for Trump,
who had presented a twenty point plan aimed at ending
the conflict last week. The statement from Hamas also included
an extraordinary shift in tone, adding that the group valued
quote the efforts of US President Donald Trump Wyel al
(02:31):
Zayat is an associate fellow of the Middle East Institute
and says this could be a major turning point in
the war.
Speaker 4 (02:39):
Based on what the president of the American President Dealtrup
has said and some other countries have confirmed, it looks
promising and it would be a huge deal. This is
the biggest breakthrough since the conflict began.
Speaker 2 (02:51):
Whyell al Zayat speaking there, But many questions remain about
whether ac spark can hold and the next steps in
the peace plan. To mark two years since Hamas's October
seventh attacks on Israel which triggered the conflict, killing one
thy two hundred people and abducting another two hundred and fifty.
Around sixty seven thousand Palestinians have died in the subsequent conflict,
(03:14):
according to the Hamas run Health Ministry. More than four
hundred and fifty Israeli soldiers have also been killed. So
that's what is happening in the Middle East. Let's go
to France. Next to Emmanuel Macon says that he will
name a new prime minister by tomorrow evening. That's after
two days of crunch talks with political leaders, which were
led by outgoing Prime Minister Sebastian Locorno aimed at building
(03:37):
support to pass a budget. Speaking to France two television
yesterday evening, Locorno said there's potential for compromise in Parliament
after the talks.
Speaker 5 (03:47):
Well, what I can say tonight after my discussions is
there is an absolute majority in the National Assembly which
refuses a new dissolution. I feel a narrow path is
at all possible. It's difficult, but I told the President
of the Republic the prospects of new snap legislative elections
are receding, and I think the situation allows for the
(04:09):
appointment of a new prime minister within the next forty
eight hours.
Speaker 2 (04:13):
Out going French Prime ministers Sebasielacorno speaking there, he also
said that the next premiere should have no ambitions to
run for president in twenty twenty seven. Failure by a
new prime minister to former cabinet would mean that emmanue
and Macon would either have to call a parliamentary election
a point yet another candidate, or resign himself. China has
(04:36):
tightened its export controls on rare earths to include items
manufactured abroad. The move expands restrictions on an industry that
has fueled trade tension between Beijing and Washington. The country's
Ministry of Commerce has said that exporters of items that
use rare earth sourced from China will now need to
obtain an export license. China is also likely to block
(04:58):
exports to foreign arms manufacturers and some semiconductor firms. Beijing
has previously used its dominance of the sector as leverage
and negotiations with the US. These new restrictions come just
weeks before present Trump and Jijingping are due to meet
in person to strike a broader trade deal. HSBC plans
(05:19):
to take Hang Seng Bank private in a major bet
on the future of Hong Kong. The London based bank
is spending fourteen billion dollars to buy the third of
Hang Seng that it doesn't already own. HSBCCO Georgelle Hedri
says it will deliver shareholder value.
Speaker 6 (05:38):
This is an investment for growth. This is an investment
in Hong Kong, one of our home markets and one
of our key markets. Hangkseng is an iconic bank in
Hong Kong. It's a leading local bank. It has a
fantastic customer franchise, have a very strong financial position and
the idea here is to effectively take private Hanksyng the HSBCCO.
Speaker 2 (06:02):
They're speaking exclusively to Bloomberg. The deal values hang Saying
at thirty seven billion dollars. It comes as Hong Kong
is trying to re emerge from China's real estate slump.
Shares in Hang Seng Bank rows twenty six percent, while
HSBC's shares fell six percent in early trading in Hong Kong.
Here in the UK, Conservative Party leader Kemy Baidenog is
(06:25):
promising to cut taxes on house buying in an attempt
to change the fortunes of her party. The pledge to
cut stamp duty was a surprise announcement at the end
of her party's and newal conference. The Tories have seen
their popularity collapse following fourteen years in government until twenty
twenty four, with some warning that they may cease to
exist as a major party. Baidenock says she'll change that.
Speaker 7 (06:50):
We need bold ideas. We need a positive vision for
this country and a plan to deliver it. We need
a new approach, a new approach that delivers a stronger
economy and stronger borders. We owe that to our children.
Speaker 2 (07:04):
Bade Knox appeal to the party faithful comes as the
polls put Conservatives in fourth place. The historic full form
grace has led to many people questioning how long the
current leader can remain in her position. Those are some
of our global and top news stories this morning. In
terms of the markets, let's get to those. So the
(07:24):
dollar right now is weakening two tenths of one percent.
We've also seen gold pull back down one percent yesterday,
and the gold spot price is down two tenths this morning,
after of course hitting a record high above four thousand
dollars an ounce. But it's also oil that is edging
lower after the peace deal the first phase at least
(07:45):
of a peace deal in the Middle East bring crew
futures at the moment down four tenths at sixty six dollars.
The bow US benchmarks stock benchmarks that is closed at
yet another record. Yesterday, the Nasdak had its best session
in seven weeks. The AI boom still firmly in place.
Stop futures though this morning for the US a little
(08:05):
bit positive. We're up by bou to tenth of one percent,
less than a tenth of one percent for the S
and P five hundred USOX fifty futures though, are in
the red and this as we get got fed minutes yesterday,
caution over rate cuts because of the warriors around inflation, tenure,
treasure yield steady at four twelve. So those are the markets.
This hour in a moment will bring you more on
Macwol's plan to reappoint a new prime minister by tomorrow,
(08:28):
plus why the global AI boom hinges on ASML's huge
expansion in one small Dutch city. Now let's go to
our top story.
Speaker 8 (08:39):
Though.
Speaker 2 (08:39):
Israel and Hamas have agreed the terms for the release
of all hostages held by Hamas in Gaza. This is
part of a US and Katari broker deal to end
their two year war. Joining US now as Bloomberg. Stuart
Livingston Wallace, who heads our coverage of the Middle East
and North Africa. Stuart, good morning. What exactly has been
agreed in terms of Israeli hostages and troops and aid
(09:04):
for Palestinians and Palestinian prisoners.
Speaker 8 (09:06):
Yes, I mean, as you said, it is very much
phase one, but it's a very significant change in the landscape,
you know, and certainly the most consequential agreement we've had
in months, arguably since the war began a couple of
years ago. So what seems to have been agreed to,
as you said, this exchange of the remaining hostages, both
those that are alive and those that are already deceased,
(09:29):
in return for a large number of Palestinian prisoners, and
based on Trump's truth social posts, there will also be
a withdrawal by Israeli troops and agreed uponline. Now the
fine details of that, I think are still to be agreed.
We anticipate that the Israeli Cabinet will be meeting later
today to sign off on this, and I think, you know,
(09:52):
one potential area of contention will be just who is
on the Palestinian prisoner list, because I know some of
the names that had been put forward earlier would be
would be very controversial as far as the israel Is concerned. However,
you know, I think there is great optimism from all
sides that they are making headway, and certainly, again based
on Trump's comments, he anticipates that the hostages would be
(10:15):
out probably on Monday. You know. Obviously will take some
time to create a safe corridor for them to come out,
and of course they will be we presume in different
locations and held by different groups within Gaza, so you know,
it will probably take some time to get done, but again,
a very very consequential change in the landscape.
Speaker 2 (10:35):
Yeah. Indeed, and so President Trump speaking to Fox News
saying he is quote very confident there'll be peace in
the Middle East. I mean, could it be? Is this
what people think in the region? Could this be the
end of what has been a devastating conflict?
Speaker 8 (10:52):
I mean, I think certainly, you know, in terms of Gaza,
the prospects for that are certainly looking a lot more
positive than they have done for a couple of years.
In terms of the wider Middle East, you know, there
are some more serious issues and far more widespread thinking,
particular about you know, Syria, Iraq, Iran, Lebanon, so on.
You know, those are very complex issues as well, but
(11:12):
specifically with regards to Gaza, at least on the face
of it, appears that we could potentially be moving into
a much more peaceful phase. But as you know, everyone knows,
there are a great many issues to resolve. They're not
least the reconstruction, the future governance, the disarmament of her mass.
You know, the list is very, very long, and it's
going to be a very difficult process to get done,
(11:35):
but this phase one certainly sets it on that path,
and I think there is good will from all sides
to try and get something done in the next several months.
Speaker 2 (11:46):
What has been the reaction in the region, because we
mentioned that it's also a Katari broker deal, What has
been the response in the region to this sort of
first phase.
Speaker 8 (11:58):
Again, I think very very pol you know, and there
has been a big push, certainly from the Arab states.
I mean noticeably cat Are being a very important mediator
in this, butan Egypt as well, the UAE, Saudi Arabia.
You know. The list is very long, and I think
to some extent, you know, the path that we saw
(12:18):
with the Abraham Abraham calls that were signed in Trom's
first term, I think it desires to return to that
as as kind of the path forward of some sort
of reconciliation and joint recognition and are more peaceful approach
to regional affairs. And I think that's largely based on
two things. One is, most of those states have very
(12:39):
ambitious goals in terms of transforming their economies away from
sort of being fossil fuel led to a far wider
industrial base, and they can't do that in an environment
where there is constant warfare, which is exactly what we're
seeing over the last couple of years, you know, very
widespread conflicts. So a great deal of optimism, I think
(12:59):
a great deal of hope that again this is the
start of something far wider, far more consequential for the
region and in terms of generating that prosperity that they're
all after.
Speaker 2 (13:10):
Indeed, so potentially a very significant breakthrough in the Middle East. Stuart,
thank you so much for being with us. That is
boom Both Stuart Livingstone Wallace, who heads our coverage of
the Middle East, thank you so much for being with us.
Stay with us. More from Bloomberg DAYBAQUB coming up after this.
So also want to think about what's happening in France
and political term are there. There is now a new
(13:32):
deadline emmanue and macall says that he'll name a new
prime minister by tomorrow evening. That's after outgoing Premier Sebastie
Lacorneo signaled progress with other parties in two days of
last ditch talks, and our own Stephen Caroll is in
Paris for us this morning. Has been there for the
last few days, really keeping close tabs on this good
morning Stephen. Why is Mackwell waiting another forty eight hours
(13:55):
then to name his next prime minister.
Speaker 9 (13:58):
Well, the key thing here is that Emmanuel mac krank
is going to name another Prime minister. That's the conclusion
that Sebastiana Corney was able to come to after two
days of these desperate negotiations with political parties, both allies
and opposition. Now, the message that he delivered in his
TV interview last night is that there was a majority
of MPs who don't want new elections to the National Assembly.
(14:19):
He also says he believes there is a platform of
stability those are the words he used, and a way
forward that could allow a budget to be passed by
the end of the year. So that means elections look
to be off the table for now. The President will
try again with another Prime minister to get a budget
agreed on the basis set by these talks. That would
be the sixth Prime minister in two years. As for
(14:41):
the timing, it does give to Alaniel Macron some time
to come up with someone to do this job, but
it also actually plays around a major event that's happening
in France here today there's a state ceremony to honor
the late Justice Minister Robert Madantere for his work on
civil liberties, including the abolition of the death penalty forty
four years ago. Today, that's a huge state of event
involving the president and they want to separate the politics
(15:03):
from that event happening today.
Speaker 2 (15:05):
So who do you think it could be then to
be the next prime minister and what sort of budget
then would that person actually be able to pass?
Speaker 3 (15:13):
Well.
Speaker 9 (15:13):
Look, sebastohna corney was asked about this repeatedly last night.
He said that it was up to the president to decide.
He said that it shouldn't be anyone who has ambitions
for the presidential election in twenty twenty seven, pointing us
towards this idea of maybe a technocratic figure. That's something
that he says is a potential solutions. That's one option.
One thing we know is that it won't be sebastianna'corneyo.
(15:34):
He said that his mission is over as far as
he's considered, he does not want to be Prime Minister anymore.
As for the budget, La Courney says there will be
a plan presented on Monday that is in keeping with
the constitutional timetable. Now, he said that it won't be
a perfect plan. There'll be lots to debate, and he
again said the general agreement among parties is that the
deficit would be under five percent. That's something for markets
(15:57):
then to take heart from. But building a censors on
a budget now seems to be centering on the thorny
political issue of pension reform. Freezing the current changes that
raise the retirement age is a key demand of left
wing parties. It comes at a huge financial cast at
least three billion by twenty twenty seven, according to Lecornu.
He says that's an area for the next prime minister
to negotiates, but he said it will be a key challenge. Again,
(16:20):
he warned if there's no budget, he described it as
being absolutely dramatic consequences for France.
Speaker 2 (16:27):
Stephen, thank you. Now, I want to get back to
the AI story. ASML is planning a major expansion in
Eindhoven in the next six months. Bloomberg's Amsterdam bureau chief
Dasher Afanasieva, is with us this morning. Good morning, Dasher,
what does ASML want to do in Eindhoven, Hello.
Speaker 1 (16:45):
It wants to build a massive, a massive expansion site.
The total area is around one hundred hectors and there.
It wants to use the site to help it boost
production and to grow sales to as much as sixty
billion euros by twenty thirty.
Speaker 3 (17:02):
Now.
Speaker 1 (17:02):
A lot of those sales will be its most extreme,
most expensive, most advanced sophisticated extreme ultraviolet machines, which are
an integral part of the AI food chain because they
are have greater computational ability and are able to process
quicker and cheaper than other chips. And ASML is sort
(17:25):
of the bottleneck because it's the only company in the
world that makes these most advanced lithography machines to make
these chips.
Speaker 2 (17:34):
So how are they going to deliver on that expansion.
It needs the support of government, of local people, workers, surely, absolutely.
Speaker 1 (17:43):
The company has been wanting to do this for a while,
but it can't do it alone because the city and
oven is very densely populated, like a lot of the Netherlands,
there's already kind of a shortage of housing, a shortage
of skilled workers, so it really needs the support of
the whole kind of ecosystem and that's why the government,
(18:06):
both local and national, have dedicated around four point one
billion euros together. There's a bit from private companies in
there as well to drive this expansion, to improve housing,
to improve infrastructure, to improve education. But there's still so
much to do. For example, the area where ASML plants
(18:26):
to expand currently has no electricity, and as you can imagine,
that's that's quite crucial, and everything moves, you know, maybe
what feels for corporate like quite a slow pace because
you have to get all these approvals, you have to
get everybody on board, and whether Mayor of Eindoven told
us is what they don't want to do is to
(18:48):
kind of be rash about it and end up with
a silicon valley, which you know, in his opinion, is
a very unequal place to live and the only people
that can afford to live there are kind of very rich.
Speaker 8 (19:01):
Hm.
Speaker 2 (19:01):
That's interesting, But obviously it's massively important for AIRSML and
also for Europe, given it's the largest company by stock
market value in Europe.
Speaker 1 (19:09):
It is the it is the largest company by stock
market value, and that reflects just what a bottleneck, what
sort of a lynch pin it is in this very
very complicated global chip making process, so we don't have
massive chip makers, but ASML is the most relevant thing
we've got, and they've you know, back into the two
(19:31):
thousands they made this euv bet and now they've invested
into an AI company, so it's very much front and
center of their mind.
Speaker 9 (19:41):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (19:48):
Look for us on your podcast feed every morning, on Apple,
Spotify and anywhere else you get your podcasts.
Speaker 9 (19:54):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (20:00):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 9 (20:07):
I'm Caroline Hepka and I'm Stephen. Carol. Join us again
tomorrow morning for all the news you need to start
your day right here on Bloomberg Daybreak Europe
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