May 8, 2024 • 16 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) The US paused a shipment of bombs to Israel over worries about Israel nearing a decision to launch a wide-ranging military offensive on the southern Gaza city of Rafah, which President Joe Biden opposes, according to a senior administration official.
(2) The US has revoked licenses allowing Huawei Technologies to buy semiconductors from Qualcomm and Intel, according to people familiar with the matter, further tightening export restrictions against the Chinese telecom equipment maker.
(3) Chinese President Xi Jinping arrived in Serbia on the second leg of his European tour as he sought to tighten Beijing’s embrace of the Balkan nation in contrast with a more difficult relationship with most of Europe.
(4) China-based ByteDance made clear it won’t comply with a new US law requiring it to sell its popular TikTok video-sharing app, setting up what likely will be a prolonged court battle pitting free-speech rights against national-security interests that could end up at the Supreme Court.
(5) China is likely using data from hacks of UK government institutions to build profiles of British military personnel and people in other sensitive roles as Beijing expands espionage against the US and its allies, government officials and cyber experts said.
See omnystudio.com/listener for privacy information.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
This is the Bloomberg Day BT podcast, available every morning
on Apple, Spotify or wherever you listen. It's Wednesday, the
eighth of May. Here in London. I'm Caroline Hepkin and.
Speaker 2 (00:10):
I'm Stephen Carroll. Coming up today, the US pauses a
shipment of bombs to Israel amid growing concern over a
Rafa invasion.
Speaker 1 (00:18):
China is suspected of carrying out a major hack on
UK defense personnel data.
Speaker 2 (00:24):
And computer says no. The UK border gate system is
temporarily thrown into chaos after an outage.
Speaker 1 (00:30):
Let's start with a round top of our top stories.
Speaker 2 (00:33):
The United States has paused a shipment of bombs to
Israel after its military seized control of the Rafa border
crossing in Gaza. A senior US official told Bloomberg. The
decision was made in response to Israel nearing a decision
to launch a military offensive on the southern Gaza city.
It comes after the White House National Security spokesperson John
Kirby said the US had reiterated its concerns about civilian
(00:56):
casualties to Israeli authorities. What we've been told.
Speaker 3 (01:00):
By our Israeli counterparts is that this operation last night
was limited and designed to cut off from Master's abilities
to smuggle weapons and funds in the Gaza. Our views
on RAFA have remained the same. We've repeatedly and consistently
expressed those views about a major operation in Raffa in
densely populated areas that would give higher risk to civilians
and civilian casualties as and Biden made that very clear
(01:22):
yesterday when he spoke to Prime Minister in Ntnyahu As
I said yesterday, and we're going to be monitoring this
situation very very closely to see how it unfolds.
Speaker 4 (01:29):
As John Kirby speaking there.
Speaker 2 (01:31):
The US has long been Israel's largest military backer, but
President Biden's called on the government of Prime Minister benjaminettanniawho
to do more to protect civilians at Gaza.
Speaker 1 (01:40):
Bloomberger has learned that JP Morgan is limiting its dealings
with Saganti Capital Management off to the Asian hedge fund
Giant was charged with insider trading in Hong Kong. Saganti
said that it intends to defend itself vigorously against those charges,
which were also leveled at a founder, Simon Sadler, and
a four trader. The fund has been a prized client
(02:02):
of all street banks that need to unload chunks of
shares in block trades and stock offerings colling to people
Bloomberg spoke to JP. Morgan informed Sagante this week of
the decision not to engage it on new block trades
or IPOs, although they added the situation is fluid and
could change.
Speaker 2 (02:20):
It's likely that China is using UK payroll data to
map out Britain's defense network. Cyber experts tel Bloomberg a
hack of a Ministry of Defense contractor which which compromised
the personal data of as many as two hundred and
seventy two thousand armed personnel, could be part of a
mass intelligence gathering exercise. Prime Minister is she Soon Act
(02:41):
declined to blame China directly for the breach, but said
he's taking a tough stance towards the country.
Speaker 5 (02:46):
I set out a very robust policy towards China, which
means that we need to take the powers which we
have done to protect ourselves against the risk that China
and other countries posed to us. They are a country
with fundamentally different values to ours for acting in a
way that is more authoritarian at home, assertive, abroad.
Speaker 2 (03:04):
Despite the Prime Minister's words, government officials of attributed of
the cyber attack to China. China strongly denies reports that
it's behind the hack, but the fresh data breach comes
as national security concerns towards the country mount.
Speaker 1 (03:17):
President Shijiping says that he will never forget the US
bombing of China's embassy in Belgrade twenty five years ago.
The leader made the comments in an editorial as he
arrived in Serbia on the second leg of his European tour.
Bloomberg's Asia Politics correspondent Rebecca Chung Wilkins explains what he's
(03:37):
signaling with the comments.
Speaker 6 (03:39):
It is a really pivotal and important moment in the
public consciousness in China that isn't always necessarily understood outside
of China because it helps seed this mistrust of the
US and this mistrust of NATO.
Speaker 1 (03:53):
Chung Wilkins adds that Serbia is far more economically and
politically friendly to both China and Russia than most other
European countries. Ties between the two house strengthened even as
Beijing's border relationship with Europe phrase over human rights issues
and trade concerns.
Speaker 2 (04:12):
The United States has report revoked export licenses allowing Intellent
Qualcom to supply of China's Huawei with semiconductors. Were told
the withdrawal effects US sales of chips for use in
Huawei phones and laptops. Officials say the move is key
to preventing China from developing advance to AI. The US
is also considering sanctions against six Chinese firms that could
(04:34):
supply chips to Huawei.
Speaker 1 (04:36):
Byte Dancers started legal proceedings against the US in an
effort to repeal the TikTok divest or ban law. It
could be a long legal battle and suggests that Byte
Dances not planning to sell the app by the January deadline.
Ploomberg's Mike Sheppard has.
Speaker 7 (04:51):
More Since President Joe Biden signed the bill into law
last month, TikTok and its owners, Beijing based Byte Dance
have been preparing this lead challenge, and they're doing so
on First Amendment ground. They're laying the groundwork for a
serious constitutional challenge to this law, saying that we'll infringe
the free speech rates of one hundred and seventy million
TikTok users.
Speaker 1 (05:13):
As Mike Shepherd says, TikTok has argued the law stifles
free speech, but the Biden administration could be forced to
reveal classified or sensitive information about why the law is
justified by dancers selling TikTok is unfeasible commercially, technically and legally.
Speaker 2 (05:30):
A glitch in the UK's electronic border gate system has
been fixed, but not before the problem caused long lines
and chaotic scenes at some of the country's major airports.
Bloombergs teaba Atabaio has more.
Speaker 8 (05:41):
Airports around the country were reduced to manually processing passengers
yesterday evening after system outages caused a nationwide issue. Hethrow
Edinburgh and Manchester were amongst those affected after electronic border
gates went offline. According to a Home Office statement, the
problem detected just before eight pm, triggering a response within minutes.
(06:04):
The system came back online just before midnight. Authorities say
border security was not compromised and there was no sign
of malicious cyber activity in London to you, added Bio
Bloomberg Radio.
Speaker 2 (06:17):
In a moment, we'll get more on the latest developments
in the Middle East, plus the details of that hack
of data of UK military personnel. But the story that
caught our eye this morning, Carlin, are you familiar with
the item that's been dubbed the millennial burkin?
Speaker 1 (06:30):
I did not know it was called that.
Speaker 4 (06:32):
No describe This.
Speaker 2 (06:34):
Is the Uniclo shoulder bag. You know some of the
called the banana bag, the dumpling bag. It looks a
bit like to those of us that are a bit older,
a bum bag essentially that you wear over your shoulder,
over size, but it's something that is was launched in
twenty twenty became a viral tektok This was feature star
after a video that's posted in twenty twenty two.
Speaker 4 (06:54):
It's absolutely massive sales.
Speaker 2 (06:56):
It's only around fifteen pounds in the UK about twenty
dollars in the US to buy as retailing doesn't provide
sales figures for this particular item, but it's being attributed.
They do describe it as their best selling item in
some markets and it is being attributed to them. Expecting
a nearly ten percent jump and revenue in the current
fiscal year, they're having to come up with lots of
new iterations to try and keep up the momentum behind
(07:16):
this worldly popular item. If you look now, you'll see
them everywhere. And this is something that Arcolic Meaglass has
been writing about from the terminal. She's even pointing out
their regional variations they've introduced. At the new Uniclose store
in Edinburgh, they have an iron Brew branded version.
Speaker 1 (07:30):
Of the orange Yeah in blue. Well, okay, that's nuts.
I am going to see these bags everwhere now, but
listen fifteen quid Certly it's not going to rival a
Burkin in terms of the hit to your wallets. And
maybe maybe that's a good nice story on the Bloomberg
terminal for you this morning. Now, the US has paused
a shipment of some bombs and weapons to Israel after
(07:51):
the Israeli military took control of the border crossing into
Egypt and sent tanks into Rafa in southern Gaza. This
is the Biden administration said that Israel and Hamas should
be able to resolve their differences over a proposed cease fire,
contradicting Israeli officials who said the two sides are still
far apart. Joining US now is Bloemberg's EMEA news direct
at Roslyn Matheson was good morning, what do we know
(08:13):
about this pause in supplies to Israel?
Speaker 9 (08:18):
Well, it's about three and a half thousand bombs all up,
and these are heavier bombs, so around two thousand pounds.
And what we've learned is that they've caused this shipment.
This was previously arranged some time ago.
Speaker 6 (08:30):
But it's a.
Speaker 9 (08:31):
Signal to the Israelis that the US is concerned about
the possible use of those weapons in Gaza, particularly in Rapa,
in an offensive and a highly densely populated area with
a lot of civilians. So what they're saying is they're
holding this shipment. They're not stopping it, they're just halting it.
It's unclear exactly when that shipment might come. But separately,
(08:53):
they are saying they're going to proceed fully with the
recent aid package that was passed through Congress and signed
into law by the US President Joe Biden, and that's
the large Israeli aid package, and that includes things to
help Israel in its own defense, particularly the Iron Dome
missile defense shield and so on. So they're not stepping
away from supporting Israel militarily, and they've said again they
(09:15):
support Israel's right to defend itself. But it is a
bit of a further message from the US that they're
concerned about what an offensive into Ruffer might look like,
a full ground offensive, and the potential use of US
heavy bombs in such an offensive.
Speaker 2 (09:29):
Ross What is the latest we're hearing about Israeli preparations
for that kind of offensive.
Speaker 9 (09:35):
Well, we know that they've occupied the Ruffer border crossing
and the UN is saying that no aid is coming
in Tagaza as a result. We also have doctors saying
that people who were sick in needing medical treatment could
not leave through the Ruffer crossing yesterday, so that seems
to be fully occupied at this point. They've been conducting
targeted strikes into Rufa, so particularly air strikes, and there
(09:59):
have been casualties from that reported. They're not doing as
yet a full ground offensive inter Rupper, but they do
seem to be laying the preparations for it. There are
further efforts to entice people to move out of Palm's way.
Israel's urging people to do that. There are some signs
that people are starting to relocate, but that's a very
slow process. You have to move a lot of people
(10:22):
out of the way quickly. You have to entice them
to move, and we're talking about hundreds of thousands of
people potentially, so we see the preparations for a potential
full offensive in Raphae. It's unlikely to happen in the
coming days because it will take time. And meantime, you
still have those efforts from the US and others to
try and persuade both Hamas and Israel to get to
(10:43):
a cespy agreement that both of them can sign up to.
Speaker 1 (10:47):
Now, on those negotiations, what do we know. Israel says
they're far apart the US that they aren't that they
can come to an agreement.
Speaker 9 (10:56):
Well, the US keep saying it's confident they can get
to a point of agreement, And it really seems to
come down to the language around you know, what does
it signal from the CEASEPA towards the permanent end to
the war? What kind of language do you get into
the agreement that suggests that it could be the precursor
to the end of the war. And Israel's quite reluctant
on that front. So it does seem to be about that,
(11:18):
but they are still polls apart on it, and there's
no sign of any progress in talks from yesterday on
that front. Israel is still talking about a ceespar, but
no evidence of any progress whatsoever, and so you know,
time is really running out on that front, and.
Speaker 4 (11:33):
We're seeing the level of concern in the region.
Speaker 9 (11:36):
For example, the Imani foreign minister spoke with the Uranian
foreign minister and Amman's been kind of quiet on this
front so far. So you're seeing those levels of concern
in the region, Egypt, demand elsewhere that the CESPAD talks
might collapse entirely.
Speaker 2 (11:50):
Now China maybe using data from a number of hacks
against the UK to build profiles of British military personnel
and other people in sensitive roles. The Defense Secretary Grunt
Apps told Parliament hackers obtained details of as many as
two hundred and seventy two thousand British soldiers, sailors and
Air Force pilots, saying that foreign state action could not
be ruled out joining US now more details as are
(12:11):
UKA Politics supporter James Wilcock James, good morning. What do
we know about the hack of this Ministry of Defense
payroll provider.
Speaker 10 (12:19):
Well, we know that hackers access that data, as you said,
names bank details, some addresses of serving military reservist potentials,
in vestments at a contractor. The one who have been
blamed is Shared Services Connected Limited. Now they themselves on
their own website describe themselves as the largest provider of
critical business support services to the UK government That includes
(12:42):
the Home Office, Department for Work and Pensions, the Met Police,
the Justice Ministry, to name a few. They are owned
by Sopustrainer. Now the question is going forward is we
know this data was accessed by these hackers. We don't
know if it was stolen or removed or altered in anyway,
And so at player this morning is sort of the
(13:02):
why forensic operation as well as the blame game and
the questions of was their other data potentially privy to
this breach?
Speaker 1 (13:10):
Yeah, and this can often take time. And that individual
contractor was named in Parliament, so we know that that
was confirmed by the minister and RUSSI, which is the
kind of defense organization one of them think tag in
the UK saying that this is the weak link, isn't it.
Look China denies wrongdoing. That hasn't stopped the accusations.
Speaker 10 (13:32):
No, and the accusations are come to the sort of
a pattern of behavior. I mean it takes months to
kind of actually publicly accusaation. Forensic cyber espionage is a
very difficult operation. But you look at what MP's at.
Tom tuganahat was a noted China hawk points to twenty
twenty one when the Electoral Commission was publicly hacked, and
that was the public accusation of China. Twenty twenty two
(13:54):
where former pilots were being hired by the Chinese military
from the RAF that were seen as there and this
there was a spearfishing attempt on MP's which was pointing
to a Huawei based hacking group. And you look at
the profiles of malign state actors, Russian based hackers tend
to go far more for sort of ransomware smash and
grab style attacks, whereas the profile of Chinese based state
(14:17):
cyber espionage tends to be about building up intelligence profiles
of defense networks, especially of five iceed countries. And in
that this type of hack, which is based around data
of noted defense personnels, fits a clear pattern, which is
why cyber experts this morning talking to Bloomberg say this
is quite clearly in their view at China linked attack.
Speaker 4 (14:39):
What is the government doing about this, James, Well, they
started review of SSLFCL.
Speaker 10 (14:44):
They have notably pointed out to Labor that this is
why they should be investing two point five percent of
GDP in defense. But it's worth noting the premis in
your question Stephen, that this is something the government should
be talking about, in that if you would have read
by cyber experts going back twenty thirty years would say, actually,
in some way this is just part of modern espionage
and it is fascinating the government are even noting it is.
(15:04):
Governments all the time try and build up profiles of rivals, nations,
defense espionages and so in that this reflects in some
ways the increasing frequency of cyber attacks, but also the
changing tone towards China and how governments from the US
around TikTok and the UK and other five vistations like
Australia are increasingly calling out these kinds of attacks as
(15:27):
a way of trying to raise the temperature and raise
fears around national security.
Speaker 4 (15:33):
This is Bloomberg Daybreak Europe.
Speaker 2 (15:34):
You're a morning brief on the stories making news from
London to Wall Streets and beyond.
Speaker 1 (15:39):
Look for us on your podcast feed every morning on Apple,
Spotify and anywhere else you get your podcasts.
Speaker 2 (15:45):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 1 (15:51):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
I'm Caroline Hepka and.
Speaker 2 (16:00):
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
This is the Bloomberg Day BT podcast, available every morning
on Apple, Spotify or wherever you listen. It's Wednesday, the
eighth of May. Here in London. I'm Caroline Hepkin and.
Speaker 2 (00:10):
I'm Stephen Carroll. Coming up today, the US pauses a
shipment of bombs to Israel amid growing concern over a
Rafa invasion.
Speaker 1 (00:18):
China is suspected of carrying out a major hack on
UK defense personnel data.
Speaker 2 (00:24):
And computer says no. The UK border gate system is
temporarily thrown into chaos after an outage.
Speaker 1 (00:30):
Let's start with a round top of our top stories.
Speaker 2 (00:33):
The United States has paused a shipment of bombs to
Israel after its military seized control of the Rafa border
crossing in Gaza. A senior US official told Bloomberg. The
decision was made in response to Israel nearing a decision
to launch a military offensive on the southern Gaza city.
It comes after the White House National Security spokesperson John
Kirby said the US had reiterated its concerns about civilian
(00:56):
casualties to Israeli authorities. What we've been told.
Speaker 3 (01:00):
By our Israeli counterparts is that this operation last night
was limited and designed to cut off from Master's abilities
to smuggle weapons and funds in the Gaza. Our views
on RAFA have remained the same. We've repeatedly and consistently
expressed those views about a major operation in Raffa in
densely populated areas that would give higher risk to civilians
and civilian casualties as and Biden made that very clear
(01:22):
yesterday when he spoke to Prime Minister in Ntnyahu As
I said yesterday, and we're going to be monitoring this
situation very very closely to see how it unfolds.
Speaker 4 (01:29):
As John Kirby speaking there.
Speaker 2 (01:31):
The US has long been Israel's largest military backer, but
President Biden's called on the government of Prime Minister benjaminettanniawho
to do more to protect civilians at Gaza.
Speaker 1 (01:40):
Bloomberger has learned that JP Morgan is limiting its dealings
with Saganti Capital Management off to the Asian hedge fund
Giant was charged with insider trading in Hong Kong. Saganti
said that it intends to defend itself vigorously against those charges,
which were also leveled at a founder, Simon Sadler, and
a four trader. The fund has been a prized client
(02:02):
of all street banks that need to unload chunks of
shares in block trades and stock offerings colling to people
Bloomberg spoke to JP. Morgan informed Sagante this week of
the decision not to engage it on new block trades
or IPOs, although they added the situation is fluid and
could change.
Speaker 2 (02:20):
It's likely that China is using UK payroll data to
map out Britain's defense network. Cyber experts tel Bloomberg a
hack of a Ministry of Defense contractor which which compromised
the personal data of as many as two hundred and
seventy two thousand armed personnel, could be part of a
mass intelligence gathering exercise. Prime Minister is she Soon Act
(02:41):
declined to blame China directly for the breach, but said
he's taking a tough stance towards the country.
Speaker 5 (02:46):
I set out a very robust policy towards China, which
means that we need to take the powers which we
have done to protect ourselves against the risk that China
and other countries posed to us. They are a country
with fundamentally different values to ours for acting in a
way that is more authoritarian at home, assertive, abroad.
Speaker 2 (03:04):
Despite the Prime Minister's words, government officials of attributed of
the cyber attack to China. China strongly denies reports that
it's behind the hack, but the fresh data breach comes
as national security concerns towards the country mount.
Speaker 1 (03:17):
President Shijiping says that he will never forget the US
bombing of China's embassy in Belgrade twenty five years ago.
The leader made the comments in an editorial as he
arrived in Serbia on the second leg of his European tour.
Bloomberg's Asia Politics correspondent Rebecca Chung Wilkins explains what he's
(03:37):
signaling with the comments.
Speaker 6 (03:39):
It is a really pivotal and important moment in the
public consciousness in China that isn't always necessarily understood outside
of China because it helps seed this mistrust of the
US and this mistrust of NATO.
Speaker 1 (03:53):
Chung Wilkins adds that Serbia is far more economically and
politically friendly to both China and Russia than most other
European countries. Ties between the two house strengthened even as
Beijing's border relationship with Europe phrase over human rights issues
and trade concerns.
Speaker 2 (04:12):
The United States has report revoked export licenses allowing Intellent
Qualcom to supply of China's Huawei with semiconductors. Were told
the withdrawal effects US sales of chips for use in
Huawei phones and laptops. Officials say the move is key
to preventing China from developing advance to AI. The US
is also considering sanctions against six Chinese firms that could
(04:34):
supply chips to Huawei.
Speaker 1 (04:36):
Byte Dancers started legal proceedings against the US in an
effort to repeal the TikTok divest or ban law. It
could be a long legal battle and suggests that Byte
Dances not planning to sell the app by the January deadline.
Ploomberg's Mike Sheppard has.
Speaker 7 (04:51):
More Since President Joe Biden signed the bill into law
last month, TikTok and its owners, Beijing based Byte Dance
have been preparing this lead challenge, and they're doing so
on First Amendment ground. They're laying the groundwork for a
serious constitutional challenge to this law, saying that we'll infringe
the free speech rates of one hundred and seventy million
TikTok users.
Speaker 1 (05:13):
As Mike Shepherd says, TikTok has argued the law stifles
free speech, but the Biden administration could be forced to
reveal classified or sensitive information about why the law is
justified by dancers selling TikTok is unfeasible commercially, technically and legally.
Speaker 2 (05:30):
A glitch in the UK's electronic border gate system has
been fixed, but not before the problem caused long lines
and chaotic scenes at some of the country's major airports.
Bloombergs teaba Atabaio has more.
Speaker 8 (05:41):
Airports around the country were reduced to manually processing passengers
yesterday evening after system outages caused a nationwide issue. Hethrow
Edinburgh and Manchester were amongst those affected after electronic border
gates went offline. According to a Home Office statement, the
problem detected just before eight pm, triggering a response within minutes.
(06:04):
The system came back online just before midnight. Authorities say
border security was not compromised and there was no sign
of malicious cyber activity in London to you, added Bio
Bloomberg Radio.
Speaker 2 (06:17):
In a moment, we'll get more on the latest developments
in the Middle East, plus the details of that hack
of data of UK military personnel. But the story that
caught our eye this morning, Carlin, are you familiar with
the item that's been dubbed the millennial burkin?
Speaker 1 (06:30):
I did not know it was called that.
Speaker 4 (06:32):
No describe This.
Speaker 2 (06:34):
Is the Uniclo shoulder bag. You know some of the
called the banana bag, the dumpling bag. It looks a
bit like to those of us that are a bit older,
a bum bag essentially that you wear over your shoulder,
over size, but it's something that is was launched in
twenty twenty became a viral tektok This was feature star
after a video that's posted in twenty twenty two.
Speaker 4 (06:54):
It's absolutely massive sales.
Speaker 2 (06:56):
It's only around fifteen pounds in the UK about twenty
dollars in the US to buy as retailing doesn't provide
sales figures for this particular item, but it's being attributed.
They do describe it as their best selling item in
some markets and it is being attributed to them. Expecting
a nearly ten percent jump and revenue in the current
fiscal year, they're having to come up with lots of
new iterations to try and keep up the momentum behind
(07:16):
this worldly popular item. If you look now, you'll see
them everywhere. And this is something that Arcolic Meaglass has
been writing about from the terminal. She's even pointing out
their regional variations they've introduced. At the new Uniclose store
in Edinburgh, they have an iron Brew branded version.
Speaker 1 (07:30):
Of the orange Yeah in blue. Well, okay, that's nuts.
I am going to see these bags everwhere now, but
listen fifteen quid Certly it's not going to rival a
Burkin in terms of the hit to your wallets. And
maybe maybe that's a good nice story on the Bloomberg
terminal for you this morning. Now, the US has paused
a shipment of some bombs and weapons to Israel after
(07:51):
the Israeli military took control of the border crossing into
Egypt and sent tanks into Rafa in southern Gaza. This
is the Biden administration said that Israel and Hamas should
be able to resolve their differences over a proposed cease fire,
contradicting Israeli officials who said the two sides are still
far apart. Joining US now is Bloemberg's EMEA news direct
at Roslyn Matheson was good morning, what do we know
(08:13):
about this pause in supplies to Israel?
Speaker 9 (08:18):
Well, it's about three and a half thousand bombs all up,
and these are heavier bombs, so around two thousand pounds.
And what we've learned is that they've caused this shipment.
This was previously arranged some time ago.
Speaker 6 (08:30):
But it's a.
Speaker 9 (08:31):
Signal to the Israelis that the US is concerned about
the possible use of those weapons in Gaza, particularly in Rapa,
in an offensive and a highly densely populated area with
a lot of civilians. So what they're saying is they're
holding this shipment. They're not stopping it, they're just halting it.
It's unclear exactly when that shipment might come. But separately,
(08:53):
they are saying they're going to proceed fully with the
recent aid package that was passed through Congress and signed
into law by the US President Joe Biden, and that's
the large Israeli aid package, and that includes things to
help Israel in its own defense, particularly the Iron Dome
missile defense shield and so on. So they're not stepping
away from supporting Israel militarily, and they've said again they
(09:15):
support Israel's right to defend itself. But it is a
bit of a further message from the US that they're
concerned about what an offensive into Ruffer might look like,
a full ground offensive, and the potential use of US
heavy bombs in such an offensive.
Speaker 2 (09:29):
Ross What is the latest we're hearing about Israeli preparations
for that kind of offensive.
Speaker 9 (09:35):
Well, we know that they've occupied the Ruffer border crossing
and the UN is saying that no aid is coming
in Tagaza as a result. We also have doctors saying
that people who were sick in needing medical treatment could
not leave through the Ruffer crossing yesterday, so that seems
to be fully occupied at this point. They've been conducting
targeted strikes into Rufa, so particularly air strikes, and there
(09:59):
have been casualties from that reported. They're not doing as
yet a full ground offensive inter Rupper, but they do
seem to be laying the preparations for it. There are
further efforts to entice people to move out of Palm's way.
Israel's urging people to do that. There are some signs
that people are starting to relocate, but that's a very
slow process. You have to move a lot of people
(10:22):
out of the way quickly. You have to entice them
to move, and we're talking about hundreds of thousands of
people potentially, so we see the preparations for a potential
full offensive in Raphae. It's unlikely to happen in the
coming days because it will take time. And meantime, you
still have those efforts from the US and others to
try and persuade both Hamas and Israel to get to
(10:43):
a cespy agreement that both of them can sign up to.
Speaker 1 (10:47):
Now, on those negotiations, what do we know. Israel says
they're far apart the US that they aren't that they
can come to an agreement.
Speaker 9 (10:56):
Well, the US keep saying it's confident they can get
to a point of agreement, And it really seems to
come down to the language around you know, what does
it signal from the CEASEPA towards the permanent end to
the war? What kind of language do you get into
the agreement that suggests that it could be the precursor
to the end of the war. And Israel's quite reluctant
on that front. So it does seem to be about that,
(11:18):
but they are still polls apart on it, and there's
no sign of any progress in talks from yesterday on
that front. Israel is still talking about a ceespar, but
no evidence of any progress whatsoever, and so you know,
time is really running out on that front, and.
Speaker 4 (11:33):
We're seeing the level of concern in the region.
Speaker 9 (11:36):
For example, the Imani foreign minister spoke with the Uranian
foreign minister and Amman's been kind of quiet on this
front so far. So you're seeing those levels of concern
in the region, Egypt, demand elsewhere that the CESPAD talks
might collapse entirely.
Speaker 2 (11:50):
Now China maybe using data from a number of hacks
against the UK to build profiles of British military personnel
and other people in sensitive roles. The Defense Secretary Grunt
Apps told Parliament hackers obtained details of as many as
two hundred and seventy two thousand British soldiers, sailors and
Air Force pilots, saying that foreign state action could not
be ruled out joining US now more details as are
(12:11):
UKA Politics supporter James Wilcock James, good morning. What do
we know about the hack of this Ministry of Defense
payroll provider.
Speaker 10 (12:19):
Well, we know that hackers access that data, as you said,
names bank details, some addresses of serving military reservist potentials,
in vestments at a contractor. The one who have been
blamed is Shared Services Connected Limited. Now they themselves on
their own website describe themselves as the largest provider of
critical business support services to the UK government That includes
(12:42):
the Home Office, Department for Work and Pensions, the Met Police,
the Justice Ministry, to name a few. They are owned
by Sopustrainer. Now the question is going forward is we
know this data was accessed by these hackers. We don't
know if it was stolen or removed or altered in anyway,
And so at player this morning is sort of the
(13:02):
why forensic operation as well as the blame game and
the questions of was their other data potentially privy to
this breach?
Speaker 1 (13:10):
Yeah, and this can often take time. And that individual
contractor was named in Parliament, so we know that that
was confirmed by the minister and RUSSI, which is the
kind of defense organization one of them think tag in
the UK saying that this is the weak link, isn't it.
Look China denies wrongdoing. That hasn't stopped the accusations.
Speaker 10 (13:32):
No, and the accusations are come to the sort of
a pattern of behavior. I mean it takes months to
kind of actually publicly accusaation. Forensic cyber espionage is a
very difficult operation. But you look at what MP's at.
Tom tuganahat was a noted China hawk points to twenty
twenty one when the Electoral Commission was publicly hacked, and
that was the public accusation of China. Twenty twenty two
(13:54):
where former pilots were being hired by the Chinese military
from the RAF that were seen as there and this
there was a spearfishing attempt on MP's which was pointing
to a Huawei based hacking group. And you look at
the profiles of malign state actors, Russian based hackers tend
to go far more for sort of ransomware smash and
grab style attacks, whereas the profile of Chinese based state
(14:17):
cyber espionage tends to be about building up intelligence profiles
of defense networks, especially of five iceed countries. And in
that this type of hack, which is based around data
of noted defense personnels, fits a clear pattern, which is
why cyber experts this morning talking to Bloomberg say this
is quite clearly in their view at China linked attack.
Speaker 4 (14:39):
What is the government doing about this, James, Well, they
started review of SSLFCL.
Speaker 10 (14:44):
They have notably pointed out to Labor that this is
why they should be investing two point five percent of
GDP in defense. But it's worth noting the premis in
your question Stephen, that this is something the government should
be talking about, in that if you would have read
by cyber experts going back twenty thirty years would say, actually,
in some way this is just part of modern espionage
and it is fascinating the government are even noting it is.
(15:04):
Governments all the time try and build up profiles of rivals, nations,
defense espionages and so in that this reflects in some
ways the increasing frequency of cyber attacks, but also the
changing tone towards China and how governments from the US
around TikTok and the UK and other five vistations like
Australia are increasingly calling out these kinds of attacks as
(15:27):
a way of trying to raise the temperature and raise
fears around national security.
Speaker 4 (15:33):
This is Bloomberg Daybreak Europe.
Speaker 2 (15:34):
You're a morning brief on the stories making news from
London to Wall Streets and beyond.
Speaker 1 (15:39):
Look for us on your podcast feed every morning on Apple,
Spotify and anywhere else you get your podcasts.
Speaker 2 (15:45):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 1 (15:51):
Our flagship New York station, is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
I'm Caroline Hepka and.
Speaker 2 (16:00):
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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