Israel Ceasefire Frays, China’s Economic Slowdown, Sweden's Tight-Lipped Bank | Bloomberg…
Summary
Middle East Tensions: Israel launched airstrikes on Gaza following the killing of two soldiers, casting doubt on the Trump-brokered ceasefire with Hamas.
China's Economic Slowdown: China's GDP growth slowed to 4.8% in Q3, highlighting a mixed economic picture with strong exports but weak domestic spending.
US-China Trade Talks: Upcoming negotiations between the US and China will focus on issues like soybean purchases and rare earths, amid ongoing trade tensions.
Sweden's Handelsbanken: Shareholders demand more transparency from the bank regarding its strategic direction, reflecting broader concerns about corporate governance.
French Debt Concerns: France faces potential forced bond selling after a credit downgrade, exacerbating fiscal challenges amid political instability.
Market Performance: Asian markets showed gains, with the MSCI Pacific Index up 1.8%, while European stock futures also rose, reflecting positive investor sentiment.
Conference Innovation: A California event aims to revitalize business conferences by encouraging more interactive and democratic participation formats.
Transcript
[Music] Bloomberg Audio Studios podcasts, radio, news. This is the Bloomberg day podcast. Good morning. It's Monday the 20th of October. I'm Caroline Hepka in London >> and I'm Steven Carroll in Brussels. Coming up today, Israel fires on dozens of targets in Gaza after two of its soldiers are killed, putting Donald Trump's peace plan in doubt. China's economic growth slows to the weakest in a year as policymakers meet to chart the path ahead for the country. >> Plus, when discretion becomes a problem. Why shareholders in Sweden's handles bank and want the lender to say more about its strategy. >> Let's start with a roundup of our top stories. >> Israel has launched air strikes at Hamas targets and is said to have suspended aid to Gaza, saying the militant group has violated the ceasefire. The Israeli military says it was retaliating for Hamas killing two of its soldiers. After the strikes, Israel said it would return to observing the ceasefire. Hamas says it remains committed to the truth and that it had lost contact with Palestinian fighters operating in Rafa. US President Donald Trump says Hamas's leadership might not be to blame. >> Well, we're going to have to see what's happening. Uh we want to make sure that it's going to be very peaceful with Hamas and as you know they've been quite rambunctious. They've been doing uh some shooting and we think maybe the leadership isn't involved in that. You know some rebels within but uh either way it's going to be it's going to be handled properly. >> The violence suggests wavering support for the Trump negotiated ceasefire which the US president hailed last week as bringing peace to the Middle East. The truce is meant to lead Hamas to disarming and seeding power, but the group is unwilling to meet those conditions. Trump's deal won the support of Arab, Muslim, and Western powers, several of which have voiced interest in contributing to a postwar stabilization force in Gaza. Now, China says that it's on track to reach this year's economic growth goal, even after posting its weakest expansion in a year. Chinese GDP grew by 4.8% 8% in the third quarter, slightly above forecasts thanks to stronger factory production and exports, but slowing momentum in domestic spending. The country's statistics bureau says the first nine months of the year have laid a solid foundation for achieving growth of around 5% for 2025. Senior China economist at UBS group Ning Jang says the latest numbers are a mixed picture. The bottom line here is that the growth slowing down but with huge divergence which means as we can see from data the exports and industrial production beat expectation but domestic economy like radio sales investment all slowing down. So that's a very interesting picture from P3. Senior China economist at UBS Group Ning Jang speaking as China's top policy makers are meeting in Beijing to finalize their next 5-year plan for the country. >> With a fragile trade truce between China and the United States set to expire on the 1st of November, US Treasury Secretary Scott Besson says the two countries will hold negotiations later this week in Malaysia. Speaking on Air Force One, President Trump laid out his top trade issues for the next round of talks. One of the things I want is China's going to buy soybeans. I want China to stop with the fentinol. Very, you know, normal things. I don't want them to play the rare earth game with us. >> The president's comments follow his threat of a 100% tariff on Chinese shipments after Beijing vowed to tighten export controls on rare earths and other critical minerals. When asked about the proposed levy in an interview on Fox News on Sunday, Trump said it was not sustainable, though it could stand, he added that he had a good relationship with President Xi and that quote, "I think we're going to be fine with China, but we have to have a fair deal." Japan's ruling Liberal Democratic Party will sign a coalition deal with the Japan Innovation Party later today, according to the smaller party's leader. The move could then set up the LDP's leader, Sai Takahichi, to become the country's first female prime minister. News of the potential new alliance comes after the LDP's junior partner, the Kato party, left the governing coalition after 26 years, a major setback for Takayichi as she sought support to form a new government. Together, the LDP and Innovation Party would still fall two seats short of a majority, but divisions among opposition groups make it likely that Takichi will win tomorrow's election in Parliament. >> The Lou Museum in Paris was closed on Sunday after several priceless artifacts were stolen. The thieves are thought to have used a furniture elevator to enter the Apollen Gallery before making off with nine pieces of jewelry from the Napoleon collection. A statement by the Ministry of Culture said items including royal tiaras, sapphire earrings, and an emerald necklace were stolen. Francis culture minister Rishi Dati gave this update. We arrived immediately a few minutes after receiving information about this theft. And to tell you everything, this operation lasted almost 4 minutes. It was very quick. It must be said that these are professionals. According to one former police chief, it was clearly a team that had done their homework as the windows were cut with a power tool. As they escaped, the robbers left behind one of the stolen objects. Emperor Sjene's crown made of more than 1,300 diamonds. The French Interior Minister Lauren Nunees says that the authorities are working hard to find the perpetrators of the attack, adding that no one was injured in the heist. Police have sealed off the museum, which remains closed. Now in other news, French government debt is at risk of forced selling by some funds. That's as the country faces its second credit downgrade in just over a month. Bloomberg's Tiba Adabio has more. Two of the three major credit assessors have taken away France's double A rating over the last few weeks. Now the country's bonds find themselves at the mercy of funds with ultra strict investment criteria who could be compelled to sell them. The latest demotion from S&P global ratings saw French bond futures decline in Asian trading, highlighting the nation's fiscal wos. It's the latest blow in a turbulent period for French debt tied to political instability featuring elevated borrowing costs and bond yields amongst the highest in the region. In London, Ta Adabio, Bloomberg Radio. >> And those are your top stories on the markets this morning. The MSI Pacific index up by 1.8%. 8% the NIKA in Tokyo 2.9% higher the MCI China index up by 2.1% on currency markets the Bloomberg dollar spot index a little weaker so the euro trading at 11672 up 210 of 1% and gold prices up 3/10 this morning $4,263 a troy ounce European stock futures also higher by 8/10en of 1% >> well in a moment we'll bring you the latest on event in Gaza plus analysis of China's growth figures and why shareholders at a conservative Swedish bank want more transparency. So all that to come, but there's something else that caught our attention. A conference, Stephen, about conferences, >> which sounds like a sort of a nightmare wrapped in, you know, poorly upholstered walls, but this is an event that actually I think it's a very interesting idea. I mean, the headline of this article says it all. Can conferences be less terrible? Bloomberg's Joe Constance went to this event in California which is trying to upend or at least revive the traditional model of business conferences which despite being a 1.2 two trillion dollar industry are generally quite dull. And I think that the challenge being led by Jenny Sarah Klein who created this event, uh she was inspired by yoga events actually to try and just shake things up and make it worthwhile for for businesses to send people to these events and and more enjoyable for the participants as well. >> Yeah, I thought it was so interesting that um she talked about having this more democratic take on an expert panel. So you have participants seated in an inner circle discussing a topic and then people are in the outer circle listen and they can also tap in if they have something to share which I thought sounded really interesting and I'd love to do that chaos >> but exactly what happens if Jamie Diamond or Tim Cook or Sacha Nadella are sitting in that inner circle? Are you really going to be you know the junior person that says I'm going to tap in and have my say? Look, I I mean the all of the ideas seem to be predicated on on the basis that everyone's going to be extremely well behaved throughout all of these events. And that's sort of my my main reading of of this um report. But the idea of there being a narrative arc to a day I do think is very interesting that you know you need to try and bring people to some sort of you know point point of denumo in the afternoon you know to try and keep them interested and then and then have sort of a windown session that's not and I think this is actually the one that that really struck me is that how the the traditional happy hour part at the end of the day needs to not be so brash and loud and actually allow people more space to be able to talk rather than screaming over a a DJ or whatever music. Yeah, I get it. Look, I I like the fact that there are new ideas and maybe something will emerge that looks very different. Why not, you know, a difference in terms of what a conference actually looks like and what you get from it. We'll put a link to it in our show notes. >> Well, let's bring you up to date now on our top story. What's been happening in the Middle East where Israel has launched new strikes against Hamas in Gaza as it blames the militant group for an attack that killed two soldiers. Bloomberg TV's Horizon's Middle East and Africa anchor Jamanna Betetti joins us now for more. Jamanna, what is the latest this Monday morning? Is the ceasefire still intact? >> Uh, well, there has been a a a big escalation tension once again. Both sides alleging that the other side has violated the ceasefire. Uh, Israel blaming Hamas for a lethal Palestinian ambush of an IDF vehicle that left two soldiers dead. uh and the Israeli PM on the back of that vowed to retaliate quite strongly that came through on Sunday after which Israel launched about a 100 air strikes on various uh locations in Gaza and on Dafak uh and then reportedly suspended all aid shipments going into the enclave on Sunday temporarily. Uh the IDF then went on to say that they have dismantled about 6 kilometers of underground tunnels. Uh but uh the Gaza side, Gaza government media office saying that at least 97 Palestinians and uh have been killed and 230 have been injured since the start of this ceasefire. So still very precarious. That being said, this morning the Israeli military did say that they will resume the enforcements of the ceasefire in Gaza and we're hearing similar from Hamas militants as well that they plan to honor the ceasefire in the future. But of course, you know, there have been multiple violations over the last couple of days. the situation is very precarious. Uh but President Trump himself has said that the ceasefire is still holding. >> Indeed. But I suppose um the issue is that there there is no external oversight, no external involvement really at the moment in terms of efforts to try to keep the peace deal on track. This deal that was brokered by President Donald Trump, what efforts are being made now on this? >> Yes. Well, uh, this week we'll see the return of the White House mediators Steve Witkoff and Jared Kushner to the region. It's also been reported that JD Vance, the vice president, will be attending as well. So, just a another reinforcement of the US support for the maintenance of the ceasefire. Uh, but ultimately they need to work very quickly to move to the other points in that Gaza peace plan. We're only at phase one and still while the living hostages have been returned, there's still about 16 bodies that have been unaccounted for. Um the Israeli government has been insistent that they would like to see the return of those bodies ASAP, but there have been some almost technical and logistical difficulties finding uh some some of the bodies amidst all of the rubles. Um but uh the the plan for this American uh delegation this week is to be there to help monitor the ceasefire to ensure that there are no further violations and then also make sure that the passage of aid does go unhindered which is another major point of that 20point peace plan. After that, they need to move quickly to establish this international security force that would be composed of mainly Arab forces that could come again and monitor the ceasefire and maintain the peace in within the Gaza Strip uh and ultimately move further towards the demilitarization of Hamas which they themselves have been resisting. So still a lot of steps that need to be resolved. And Joanna, while all that has been going on, there's also been warnings of further attacks, including from the US State Department over the weekend, which said that Hamas was planning to attack Palestinians. How significant are these warnings in the broader context of what's going on? >> Yes. So quite grizzly and gruesome images emerged on social media towards the uh middle of the week last week whereby Hamas militants were seen executing and killing Palestinians who were seen to be too closely allied to Israel. Uh and this was uh you know a a a sharp reminder that even though the war is over technically and that there's a ceasefire in place, Hamas militants, at least military operatives within the strip are not going to put down their weapons that quickly and they're looking to reassert their control over the uh strip once again. Uh but President Trump himself took note of that and he put up a post on True Social saying if Hamas continues to kill people in Gaza, which was not in the deal, we will have no choice but to go in and kill them. That is exactly what he said, a literal quote from the president. So there is a lot of pressure mounting from the international community, from the US on restraining some of these operatives. But then another sort of um uh fissure has has emerged in that uh Hamas themselves seem to be divided between the political members who have signed on and espoused the elements of this peace plan versus some of the more combative militant members of Hamas who are operating um unhindered within the territory. And that's going to be the bigger challenge, trying to re restrain the military wing of Hamas as opposed to the political negotiations who had signed on to this 20point peace plan. >> Okay, Jamanna, thank you so much for being with us. Jamanna Beti, Bloomberg TV Horizon's Middle East and Africa anchor with the latest then on what's been happening in Gaza. Thank you. Stay with us. More from Bloomberg Dayb coming up after this. We're going to go to China next where a meeting of policy makers is getting underway today which will set out the five-year plan, the next 5-year plan to cover the period from 2026 until 2030. It's a sort of blueprint for the country's economic and social development as well. But the background to an event this like that happening uh is the latest economic data that we have out of China showing the country's economy grew by 4.8% in the third quarter, the weakest pace in a year. Now, the figures were better than expected, but they do underscore the long-term challenges for China's economy as that meeting of policy makers gets underway. Let's go to Beijing for more and speak to our Greater China executive editor, John Louu. John, let's start with what we learned from the data today. What is the state of China's economy now? And is it still on track to meet that 5% growth goal? >> Uh, it is on track to meet that 5% growth goal for 2025. But at the same time, the economy is looking weaker than it has ever looked uh in the earlier part of this year. Uh, as you were saying, uh, GDP came in at 4.8. That was better than expected, but it's much weaker than what we had in the first half. But still, it's enough to get us across what looks like across the 5% threshold for all of 2025. The other thing I would note is we're starting to see this divergence. You're you're seeing strength in things like exports. You're seeing strength in things like industrial output. So, companies creating building product for those exports. At the same time, you're seeing weakness in uh retail sales. And you're seeing weakness in investment. So, the domestic consumption market is really suffering. Indeed, the significant vulnerabilities in the Chinese economy are are there. I suppose what are the risks going forwards? >> So, uh, another set of data we got today was, uh, for home prices. And so, we've had for the last four years this, uh, precipitous plunge in the housing market and that looks like it's actually getting worse. And so the the decline in home prices in September was the was by the most in a year for both secondhand and new homes. And so all of these measures that the government has undertaken to try and prop up the property market, it seems that has not worked. Uh it's been a drag on the economy because so much of the household wealth in China is stored in in the value of people's properties. As that falls, people feel poor and they spend less. So that's a real problem for the economy. This is, as we mentioned, the week that the Communist Party is holding its its 4-day meeting to finalize the country's next five-year plan. What are we expecting to learn from that meeting? >> So, we should out of that meeting hear uh an emphasis on technology uh guiding more investment towards innovation towards things like semiconductors, towards things like AI. We should also hear uh a renewed emphasis uh on getting consumption up and going, getting Chinese consumers to spend and lots of measures to try and address that issue uh including the housing market. What what I think is unlikely at this point because it looks like we're going to hit that 5% mark for 2025, it looks unlikely we're going to get some big stimulus push coming out of this meeting for the rest of this year. And so a last thought then with the other risks, the relationship with the US that's still so tense. What does it mean for the US China talks then this week? >> So the Chinese economy being in a relatively strong position uh as it relates to that 5% target. I think that means Beijing's feeling relatively confident about its negotiating position. So, we do know that Secretary Bessant and the Chinese Vice Premier Hulong had a phone call last Friday and we are expecting them to meet this week ahead of that meeting at the end of the month between Presidents Trump and Xi. And so, I think we will see more discussion about rare earths, about fentinel, and about soybean purchases. So, China bought about 12 billion worth of soybeans from American farmers last year. They have so far this year bought none. And so these are the main things on the table that America wants from China. >> This is Bloomberg Daybreak Europe, your morning brief on the stories making news from London to Wall Street and beyond. >> Look for us on your podcast feed every morning on Apple, Spotify, and anywhere else you get your podcasts. >> You can also listen live each morning on London DAB radio, the Bloomberg Business App, and Bloomberg.com. >> Our flagship New York station is also available on your Amazon Alexa devices. Just say, "Alexa, play Bloomberg 11:30." I'm Caroline Hepker. >> And I'm Steven Carroll. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak Europe. [Music]
Israel Ceasefire Frays, China’s Economic Slowdown, Sweden's Tight-Lipped Bank | Bloomberg…
Summary
Transcript
[Music] Bloomberg Audio Studios podcasts, radio, news. This is the Bloomberg day podcast. Good morning. It's Monday the 20th of October. I'm Caroline Hepka in London >> and I'm Steven Carroll in Brussels. Coming up today, Israel fires on dozens of targets in Gaza after two of its soldiers are killed, putting Donald Trump's peace plan in doubt. China's economic growth slows to the weakest in a year as policymakers meet to chart the path ahead for the country. >> Plus, when discretion becomes a problem. Why shareholders in Sweden's handles bank and want the lender to say more about its strategy. >> Let's start with a roundup of our top stories. >> Israel has launched air strikes at Hamas targets and is said to have suspended aid to Gaza, saying the militant group has violated the ceasefire. The Israeli military says it was retaliating for Hamas killing two of its soldiers. After the strikes, Israel said it would return to observing the ceasefire. Hamas says it remains committed to the truth and that it had lost contact with Palestinian fighters operating in Rafa. US President Donald Trump says Hamas's leadership might not be to blame. >> Well, we're going to have to see what's happening. Uh we want to make sure that it's going to be very peaceful with Hamas and as you know they've been quite rambunctious. They've been doing uh some shooting and we think maybe the leadership isn't involved in that. You know some rebels within but uh either way it's going to be it's going to be handled properly. >> The violence suggests wavering support for the Trump negotiated ceasefire which the US president hailed last week as bringing peace to the Middle East. The truce is meant to lead Hamas to disarming and seeding power, but the group is unwilling to meet those conditions. Trump's deal won the support of Arab, Muslim, and Western powers, several of which have voiced interest in contributing to a postwar stabilization force in Gaza. Now, China says that it's on track to reach this year's economic growth goal, even after posting its weakest expansion in a year. Chinese GDP grew by 4.8% 8% in the third quarter, slightly above forecasts thanks to stronger factory production and exports, but slowing momentum in domestic spending. The country's statistics bureau says the first nine months of the year have laid a solid foundation for achieving growth of around 5% for 2025. Senior China economist at UBS group Ning Jang says the latest numbers are a mixed picture. The bottom line here is that the growth slowing down but with huge divergence which means as we can see from data the exports and industrial production beat expectation but domestic economy like radio sales investment all slowing down. So that's a very interesting picture from P3. Senior China economist at UBS Group Ning Jang speaking as China's top policy makers are meeting in Beijing to finalize their next 5-year plan for the country. >> With a fragile trade truce between China and the United States set to expire on the 1st of November, US Treasury Secretary Scott Besson says the two countries will hold negotiations later this week in Malaysia. Speaking on Air Force One, President Trump laid out his top trade issues for the next round of talks. One of the things I want is China's going to buy soybeans. I want China to stop with the fentinol. Very, you know, normal things. I don't want them to play the rare earth game with us. >> The president's comments follow his threat of a 100% tariff on Chinese shipments after Beijing vowed to tighten export controls on rare earths and other critical minerals. When asked about the proposed levy in an interview on Fox News on Sunday, Trump said it was not sustainable, though it could stand, he added that he had a good relationship with President Xi and that quote, "I think we're going to be fine with China, but we have to have a fair deal." Japan's ruling Liberal Democratic Party will sign a coalition deal with the Japan Innovation Party later today, according to the smaller party's leader. The move could then set up the LDP's leader, Sai Takahichi, to become the country's first female prime minister. News of the potential new alliance comes after the LDP's junior partner, the Kato party, left the governing coalition after 26 years, a major setback for Takayichi as she sought support to form a new government. Together, the LDP and Innovation Party would still fall two seats short of a majority, but divisions among opposition groups make it likely that Takichi will win tomorrow's election in Parliament. >> The Lou Museum in Paris was closed on Sunday after several priceless artifacts were stolen. The thieves are thought to have used a furniture elevator to enter the Apollen Gallery before making off with nine pieces of jewelry from the Napoleon collection. A statement by the Ministry of Culture said items including royal tiaras, sapphire earrings, and an emerald necklace were stolen. Francis culture minister Rishi Dati gave this update. We arrived immediately a few minutes after receiving information about this theft. And to tell you everything, this operation lasted almost 4 minutes. It was very quick. It must be said that these are professionals. According to one former police chief, it was clearly a team that had done their homework as the windows were cut with a power tool. As they escaped, the robbers left behind one of the stolen objects. Emperor Sjene's crown made of more than 1,300 diamonds. The French Interior Minister Lauren Nunees says that the authorities are working hard to find the perpetrators of the attack, adding that no one was injured in the heist. Police have sealed off the museum, which remains closed. Now in other news, French government debt is at risk of forced selling by some funds. That's as the country faces its second credit downgrade in just over a month. Bloomberg's Tiba Adabio has more. Two of the three major credit assessors have taken away France's double A rating over the last few weeks. Now the country's bonds find themselves at the mercy of funds with ultra strict investment criteria who could be compelled to sell them. The latest demotion from S&P global ratings saw French bond futures decline in Asian trading, highlighting the nation's fiscal wos. It's the latest blow in a turbulent period for French debt tied to political instability featuring elevated borrowing costs and bond yields amongst the highest in the region. In London, Ta Adabio, Bloomberg Radio. >> And those are your top stories on the markets this morning. The MSI Pacific index up by 1.8%. 8% the NIKA in Tokyo 2.9% higher the MCI China index up by 2.1% on currency markets the Bloomberg dollar spot index a little weaker so the euro trading at 11672 up 210 of 1% and gold prices up 3/10 this morning $4,263 a troy ounce European stock futures also higher by 8/10en of 1% >> well in a moment we'll bring you the latest on event in Gaza plus analysis of China's growth figures and why shareholders at a conservative Swedish bank want more transparency. So all that to come, but there's something else that caught our attention. A conference, Stephen, about conferences, >> which sounds like a sort of a nightmare wrapped in, you know, poorly upholstered walls, but this is an event that actually I think it's a very interesting idea. I mean, the headline of this article says it all. Can conferences be less terrible? Bloomberg's Joe Constance went to this event in California which is trying to upend or at least revive the traditional model of business conferences which despite being a 1.2 two trillion dollar industry are generally quite dull. And I think that the challenge being led by Jenny Sarah Klein who created this event, uh she was inspired by yoga events actually to try and just shake things up and make it worthwhile for for businesses to send people to these events and and more enjoyable for the participants as well. >> Yeah, I thought it was so interesting that um she talked about having this more democratic take on an expert panel. So you have participants seated in an inner circle discussing a topic and then people are in the outer circle listen and they can also tap in if they have something to share which I thought sounded really interesting and I'd love to do that chaos >> but exactly what happens if Jamie Diamond or Tim Cook or Sacha Nadella are sitting in that inner circle? Are you really going to be you know the junior person that says I'm going to tap in and have my say? Look, I I mean the all of the ideas seem to be predicated on on the basis that everyone's going to be extremely well behaved throughout all of these events. And that's sort of my my main reading of of this um report. But the idea of there being a narrative arc to a day I do think is very interesting that you know you need to try and bring people to some sort of you know point point of denumo in the afternoon you know to try and keep them interested and then and then have sort of a windown session that's not and I think this is actually the one that that really struck me is that how the the traditional happy hour part at the end of the day needs to not be so brash and loud and actually allow people more space to be able to talk rather than screaming over a a DJ or whatever music. Yeah, I get it. Look, I I like the fact that there are new ideas and maybe something will emerge that looks very different. Why not, you know, a difference in terms of what a conference actually looks like and what you get from it. We'll put a link to it in our show notes. >> Well, let's bring you up to date now on our top story. What's been happening in the Middle East where Israel has launched new strikes against Hamas in Gaza as it blames the militant group for an attack that killed two soldiers. Bloomberg TV's Horizon's Middle East and Africa anchor Jamanna Betetti joins us now for more. Jamanna, what is the latest this Monday morning? Is the ceasefire still intact? >> Uh, well, there has been a a a big escalation tension once again. Both sides alleging that the other side has violated the ceasefire. Uh, Israel blaming Hamas for a lethal Palestinian ambush of an IDF vehicle that left two soldiers dead. uh and the Israeli PM on the back of that vowed to retaliate quite strongly that came through on Sunday after which Israel launched about a 100 air strikes on various uh locations in Gaza and on Dafak uh and then reportedly suspended all aid shipments going into the enclave on Sunday temporarily. Uh the IDF then went on to say that they have dismantled about 6 kilometers of underground tunnels. Uh but uh the Gaza side, Gaza government media office saying that at least 97 Palestinians and uh have been killed and 230 have been injured since the start of this ceasefire. So still very precarious. That being said, this morning the Israeli military did say that they will resume the enforcements of the ceasefire in Gaza and we're hearing similar from Hamas militants as well that they plan to honor the ceasefire in the future. But of course, you know, there have been multiple violations over the last couple of days. the situation is very precarious. Uh but President Trump himself has said that the ceasefire is still holding. >> Indeed. But I suppose um the issue is that there there is no external oversight, no external involvement really at the moment in terms of efforts to try to keep the peace deal on track. This deal that was brokered by President Donald Trump, what efforts are being made now on this? >> Yes. Well, uh, this week we'll see the return of the White House mediators Steve Witkoff and Jared Kushner to the region. It's also been reported that JD Vance, the vice president, will be attending as well. So, just a another reinforcement of the US support for the maintenance of the ceasefire. Uh, but ultimately they need to work very quickly to move to the other points in that Gaza peace plan. We're only at phase one and still while the living hostages have been returned, there's still about 16 bodies that have been unaccounted for. Um the Israeli government has been insistent that they would like to see the return of those bodies ASAP, but there have been some almost technical and logistical difficulties finding uh some some of the bodies amidst all of the rubles. Um but uh the the plan for this American uh delegation this week is to be there to help monitor the ceasefire to ensure that there are no further violations and then also make sure that the passage of aid does go unhindered which is another major point of that 20point peace plan. After that, they need to move quickly to establish this international security force that would be composed of mainly Arab forces that could come again and monitor the ceasefire and maintain the peace in within the Gaza Strip uh and ultimately move further towards the demilitarization of Hamas which they themselves have been resisting. So still a lot of steps that need to be resolved. And Joanna, while all that has been going on, there's also been warnings of further attacks, including from the US State Department over the weekend, which said that Hamas was planning to attack Palestinians. How significant are these warnings in the broader context of what's going on? >> Yes. So quite grizzly and gruesome images emerged on social media towards the uh middle of the week last week whereby Hamas militants were seen executing and killing Palestinians who were seen to be too closely allied to Israel. Uh and this was uh you know a a a sharp reminder that even though the war is over technically and that there's a ceasefire in place, Hamas militants, at least military operatives within the strip are not going to put down their weapons that quickly and they're looking to reassert their control over the uh strip once again. Uh but President Trump himself took note of that and he put up a post on True Social saying if Hamas continues to kill people in Gaza, which was not in the deal, we will have no choice but to go in and kill them. That is exactly what he said, a literal quote from the president. So there is a lot of pressure mounting from the international community, from the US on restraining some of these operatives. But then another sort of um uh fissure has has emerged in that uh Hamas themselves seem to be divided between the political members who have signed on and espoused the elements of this peace plan versus some of the more combative militant members of Hamas who are operating um unhindered within the territory. And that's going to be the bigger challenge, trying to re restrain the military wing of Hamas as opposed to the political negotiations who had signed on to this 20point peace plan. >> Okay, Jamanna, thank you so much for being with us. Jamanna Beti, Bloomberg TV Horizon's Middle East and Africa anchor with the latest then on what's been happening in Gaza. Thank you. Stay with us. More from Bloomberg Dayb coming up after this. We're going to go to China next where a meeting of policy makers is getting underway today which will set out the five-year plan, the next 5-year plan to cover the period from 2026 until 2030. It's a sort of blueprint for the country's economic and social development as well. But the background to an event this like that happening uh is the latest economic data that we have out of China showing the country's economy grew by 4.8% in the third quarter, the weakest pace in a year. Now, the figures were better than expected, but they do underscore the long-term challenges for China's economy as that meeting of policy makers gets underway. Let's go to Beijing for more and speak to our Greater China executive editor, John Louu. John, let's start with what we learned from the data today. What is the state of China's economy now? And is it still on track to meet that 5% growth goal? >> Uh, it is on track to meet that 5% growth goal for 2025. But at the same time, the economy is looking weaker than it has ever looked uh in the earlier part of this year. Uh, as you were saying, uh, GDP came in at 4.8. That was better than expected, but it's much weaker than what we had in the first half. But still, it's enough to get us across what looks like across the 5% threshold for all of 2025. The other thing I would note is we're starting to see this divergence. You're you're seeing strength in things like exports. You're seeing strength in things like industrial output. So, companies creating building product for those exports. At the same time, you're seeing weakness in uh retail sales. And you're seeing weakness in investment. So, the domestic consumption market is really suffering. Indeed, the significant vulnerabilities in the Chinese economy are are there. I suppose what are the risks going forwards? >> So, uh, another set of data we got today was, uh, for home prices. And so, we've had for the last four years this, uh, precipitous plunge in the housing market and that looks like it's actually getting worse. And so the the decline in home prices in September was the was by the most in a year for both secondhand and new homes. And so all of these measures that the government has undertaken to try and prop up the property market, it seems that has not worked. Uh it's been a drag on the economy because so much of the household wealth in China is stored in in the value of people's properties. As that falls, people feel poor and they spend less. So that's a real problem for the economy. This is, as we mentioned, the week that the Communist Party is holding its its 4-day meeting to finalize the country's next five-year plan. What are we expecting to learn from that meeting? >> So, we should out of that meeting hear uh an emphasis on technology uh guiding more investment towards innovation towards things like semiconductors, towards things like AI. We should also hear uh a renewed emphasis uh on getting consumption up and going, getting Chinese consumers to spend and lots of measures to try and address that issue uh including the housing market. What what I think is unlikely at this point because it looks like we're going to hit that 5% mark for 2025, it looks unlikely we're going to get some big stimulus push coming out of this meeting for the rest of this year. And so a last thought then with the other risks, the relationship with the US that's still so tense. What does it mean for the US China talks then this week? >> So the Chinese economy being in a relatively strong position uh as it relates to that 5% target. I think that means Beijing's feeling relatively confident about its negotiating position. So, we do know that Secretary Bessant and the Chinese Vice Premier Hulong had a phone call last Friday and we are expecting them to meet this week ahead of that meeting at the end of the month between Presidents Trump and Xi. And so, I think we will see more discussion about rare earths, about fentinel, and about soybean purchases. So, China bought about 12 billion worth of soybeans from American farmers last year. They have so far this year bought none. And so these are the main things on the table that America wants from China. >> This is Bloomberg Daybreak Europe, your morning brief on the stories making news from London to Wall Street and beyond. >> Look for us on your podcast feed every morning on Apple, Spotify, and anywhere else you get your podcasts. >> You can also listen live each morning on London DAB radio, the Bloomberg Business App, and Bloomberg.com. >> Our flagship New York station is also available on your Amazon Alexa devices. Just say, "Alexa, play Bloomberg 11:30." I'm Caroline Hepker. >> And I'm Steven Carroll. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak Europe. [Music]