Episode summary
Uncertainty in Israeli Election; Bolsonaro Flees Brazil | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 21 min
Summary
Israel’s election remained unsettled as vote counting showed Benjamin Netanyahu’s bloc moving ahead of Gadi Eisenkot’s, but still short of the 61 seats needed for a majority in the 120-member Knesset. Bloomberg’s Israel bureau chief Ethan Bronner said the result looked increasingly like a messy stalemate, with Arab parties potentially holding the balance but no obvious coalition path for either side.
The episode also covered fallout from Brazil’s presidential election, with Flávio Bolsonaro reported in Miami after fleeing Brazil. The host said Bolsonaro had been ordered to surrender his passports amid criminal investigations, while the United States was reportedly willing to grant visas to him and his family.
Markets centered on the Federal Reserve’s decision, with economists expecting no change in rates even after hotter inflation data. The host said investors were focused on whether Fed Chair Kevin Warsh would explain why the central bank was pausing after previously signaling more tightening. The show also noted stronger AI-related news from SK Hynix and a Bloomberg Intelligence view that China could lead large language models by 2030.
Key takeaways
- Netanyahu’s bloc was projected around 54 to 55 seats, leaving Israel’s next government unresolved and making the Arab parties potential kingmakers.
- Ethan Bronner said neither Netanyahu nor Eisenkot had a clear coalition path, and another election remained a real possibility.
- Flávio Bolsonaro’s reported arrival in Miami raised questions about Brazilian legal pressure and whether the US would grant him and his family visas.
- The host said most economists expected the Fed to hold rates steady despite hotter September inflation.
- Bloomberg Intelligence said China is well placed to lead large language models by 2030, though its AI firms still face monetization problems.
Notable quotes
“it is still too close to call the Israeli elections, but the latest results show Prime Minister Benjamin Netanyahu edging past opposition leader Gotti Eisenot”
“neither side has a clear path to forming a government. Israel's two Arab parties have emerged as potential kingmakers”
“What type of visa? We don't know. What exactly are the details? We don't know”
“Most economists are expecting Kevin Wars and company to leave rates unchanged”
“It concludes that China is well placed to lead the world by 2030 in the large language models which are at the core of AI”
How the episode opens
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, it is still too close to call the Israeli elections, but the latest results show Prime Minister Benjamin Netanyahu edging past opposition leader Gotti Eisenot in the country's first election since the Hamas attacks 3 years ago.
We get more from Bloomberg Middle East managing editor, Oner Aunt. The latest results from Israeli election authorities with just over a half of the ballots counted show that Netanyahu's block was projected to win about 55 seats against Eisen's block winning 49 seats. So there's a bit of a lead that's emerging there in Netanyahu's favor.
Now that said, it's still early to call the election and with half the votes, half the ballots still waiting to be counted, the overall picture can change again.
Bloomberg's owner an says neither side has a clear path to forming a government. Israel's two Arab parties have emerged as potential kingmakers. They're forecast to win 16 seats.
Still, hundreds of thousands of votes from army bases, hospitals, and diplomatic outposts won't be tallied for another day or two. Nathan, we have new developments this morning in the Middle East. The Wall Street Journal is reporting the US has warned several Gulf countries to be prepared for a short, intense military campaign after the midterm elections.
Bluer Livingston Wallace explains the risk of escalation.
Trump has repeatedly and publicly been very clear about what his two options are, and the rhetoric has very much been on the side of restarting hostilities. At the same time, you've seen the US move in substantial amounts of hardware into the region. So, a third strike carrier group and there are other troops coming in as well as batteries and so on so forth.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- israeli election uncertainty
- brazil presidential aftermath
- us visa policy
- fed interest rates
- hotter than expected inflation
Companies and tickers mentioned
- O Globo
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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