Speaker 1: This is Tom Keene introducing you to the Bloomberg Daybreak podcast.
Speaker 1: Every day, Nathan Hager, Karen Moscow, and Michael Barr bring
Speaker 1: you a roundup of the top stories from Wall Street
Speaker 1: to Washington and around the world. It's all on the
Speaker 1: Daybreak podcast feed by six am each morning, and today,
Speaker 1: for our Bloomberg Surveillance audience, we bring you a sample
Speaker 1: of the show. Click the link in this description to
Speaker 1: subscribe to the Bloomberg Daybreak Podcast on Apple, Spotify, or
Speaker 1: anywhere you listen.
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
Speaker 2: are the stories we're following today.
Speaker 3: We begin with a guilty verdict for Sam Bankman Free.
Speaker 3: It took a jury less than five hours to convict
Speaker 3: the FTX co founder of seven counts of fraud and conspiracy.
Speaker 3: Bloomberg's June Grossow begins our team coverage.
Speaker 4: It's not a surprise because the evidence against him was overwhelming.
Speaker 4: And think, what did it is? Dam Makminfried took the
Speaker 4: stand in his own defense, and when a defendant takes
Speaker 4: the stand that way, the whole thing in the jury's
Speaker 4: mind becomes a credibility game. How incredible do they find him.
Speaker 3: Bloomberg's June Grosso says Sam Bankman Fried faces as much
Speaker 3: as twenty years in prison on each of the most
Speaker 3: serious charges. He'll be sentenced in March.
Speaker 2: Well Nathan Bloomberg. The legal reporter Ava Benny Morrison was
Speaker 2: in the courtroom during the verdict, and she continues our
Speaker 2: team coverage.
Speaker 5: He was pretty emotionless. He was asked to stand up
Speaker 5: by the judge. When the jury delivered its verdict, he
Speaker 5: faced the jury box. He held his hands in front
Speaker 5: of him and it looked like he was tearing down
Speaker 5: at the floor as the jury. As the fourth person
Speaker 5: for the jury confirmed guilty to each of the seven charges.
Speaker 5: He then sat back down. When the jury walked out
Speaker 5: of the room. He was whispering with his lawyers. He
Speaker 5: was nodding a lot while he wasn't very emotional. His
Speaker 5: parents were how they were holding each other. His dad,
Speaker 5: I'm doubled over at one point.
Speaker 2: Bloomberg Legal reporter Ava Benny Morrison reports, Bankman's lawyer is
Speaker 2: considering an appeal.
Speaker 3: Hey Karen Bloomberg. Business Week investigative reporter Zeke Fox wrote
Speaker 3: a book on ftx's crypto Rollercoaster, and he says bankmin
Speaker 3: Freed struggled under cross examination.
Speaker 6: When his own lawyer was questioning him, he had a
Speaker 6: lot to say, but when the prosecution had there turned
Speaker 6: a cross examine, he suddenly didn't remember anything. And in
Speaker 6: one moment that was dramatic, I mean, especially for me.
Speaker 6: The prosecutor asked her, as she asked him about the statement,
Speaker 6: there was more leeway, and he said, I don't remember
Speaker 6: saying anything like that. She whipped out a copy of
Speaker 6: my book number go up and walked it over to
Speaker 6: him like a hard copy, and was like turn to
Speaker 6: page two twenty four.
Speaker 3: In Bloomberg Business Week, Zeke Fox ads the conviction is
Speaker 3: the first in a wave of legal action against crypto companies.
Speaker 2: Nathan now to the other major trial happening in New York,
Speaker 2: Donald Trump's two hundred and fifty million dollars civil fraud case.
Speaker 2: The former president's two oldest sons took turns on the
Speaker 2: witness stand, denying any role in preparing their company's financial records. Afterward,
Speaker 2: Donald Trump Junior addressed reporters.
Speaker 7: Before even having a day in court, I'm apparently guilty
Speaker 7: of fraud for relying on my accountants to do wait
Speaker 7: for it accounting.
Speaker 2: Donald Trump Junior's brother Eric is set to continue testifying today.
Speaker 2: Their sister Evonka will take the stand next week. She
Speaker 2: lost an appeal to delay her testimony.
Speaker 6: Well, Karen, we.
Speaker 3: Now turn to the war in the Middle East. Secretary
Speaker 3: of State Anthony Blinken is back in Tel Aviv.
Speaker 8: We're determined that this conflict Nott spread and we'll be
Speaker 8: talking to both the Israeli government partners in the region
Speaker 8: about what all of us are doing to prevent that
Speaker 8: from happening.
Speaker 3: When Secretary of State b Lincoln's arrival comes. As ground
Speaker 3: operations continue in Gaza, the Hamas run Health Ministry says
Speaker 3: more than nine thousand Palestinians have died in the fighting.
Speaker 3: Israel says seventeen if its soldiers have been killed.
Speaker 2: Well, Nathan. The House has passed the Aid for Israel bill,
Speaker 2: but Bloomberg's Ad Baxter reports it may have a troubled future.
Speaker 9: This is a victory for House Speaker Mike Johnson, but
Speaker 9: it looks as if it is dead to become law.
Speaker 9: Senate Majority Leader Chuck Schumer has been saying taking funding
Speaker 9: from IRS enforcement is a bad idea, and President Biden
Speaker 9: is out saying if it were to hit his desk,
Speaker 9: he would not sign it. House Speaker Johnson says it
Speaker 9: will get done.
Speaker 6: There is absolutely no equivocation here. We have to stay with.
Speaker 9: Israel, and Republican Congressman Tom Cole says there are different
Speaker 9: paths to get the aid.
Speaker 8: We have a lot of unspent money.
Speaker 9: We ought to use that toward a more important purpose,
Speaker 9: and that's Israel. So the issue is far from settled.
Speaker 9: Ed Baxter Bloomberg Radio.
Speaker 8: Okay and thank you.
Speaker 3: Turning the market. Shares of Apple are down more than
Speaker 3: three percent. The world's most valuable company reported its fourth
Speaker 3: straight sales decline, and it's warning holiday revenue will be
Speaker 3: about the same as last year. Angelo Zeno, as senior
Speaker 3: equity analyst at CFA Research.
Speaker 10: It's not the most favorable landscape out there for PCs,
Speaker 10: even though the broader PC landscape appears to have found
Speaker 10: some sort of putting for the time being, but at
Speaker 10: the end of the day, the consumer landscape is still
Speaker 10: very challenging in.
Speaker 3: Nature cfres angelo Zino says the results also suggest Apples
Speaker 3: facing a decceleration in China.
Speaker 2: Well Nathano the stocks on the move this morning. Shares
Speaker 2: of DraftKings up seven percent. The sports betting operator reported
Speaker 2: sales and player numbers that beat analysts expectations, Block shares
Speaker 2: surging more than eighteen percent, the Payments Giant run by
Speaker 2: Jack Dorsey, again boosting its profit forecast for the year,
Speaker 2: and shares of Booking dropping as much as seven percent
Speaker 2: in light trading. The company formerly known as Price Lines
Speaker 2: as travel demand had been diminished by the Israel Hamas war,
Speaker 2: and on.
Speaker 3: The economic front, Karen a busy Week concludes with the
Speaker 3: October Jobs Report, a preview of that now from Bloomberg's
Speaker 3: Michael McKee.
Speaker 11: FED chair J Powell says a tight labor market could
Speaker 11: lead to another rate move, which means markets will partch
Speaker 11: the October jobs report trying to determine what it signals.
Speaker 11: Is hiring still much stronger than what's needed to absorb
Speaker 11: an increasing labor force. Have higher interest rates led companies
Speaker 11: to pull back on hiring or even start letting people go.
Speaker 11: Our company is still paying up to attract workers, while
Speaker 11: the FED we'll also see the November payrolls report before
Speaker 11: its next meeting. Powell says it will take several months
Speaker 11: of data to make any decisions. Michael McKee, Bloomberg Radio.
Speaker 2: All right, Nathan, thank you. It is time now for
Speaker 2: a look at some of the other stories making news
Speaker 2: around the world. And for that we're joined by Bloomberg's
Speaker 2: John Tucker, John, good morning.
Speaker 12: And Karen. Something maybe rotten in the Big Apple. The
Speaker 12: mayor's fundraising campaign is under investigation. Let's get more on
Speaker 12: this report from Bloomberg's Michael Barr.
Speaker 13: Mayor Adams ditched White House meeting on the migrant crisis
Speaker 13: and flew back to the city that mayor explaining his
Speaker 13: abrupt return.
Speaker 8: But you probably heard the reports involved in one of
Speaker 8: my campaign staffers.
Speaker 13: Staffer is lead fundraiser, twenty five year old Branna Suggs,
Speaker 13: whose Brooklyn home was raided by the FBI on along
Speaker 13: with the officers of a New York construction firm called KSK,
Speaker 13: it made fourteen thousand dollars in campaign contributions. The investigation
Speaker 13: is looking into whether the company, along with Turkish nationals,
Speaker 13: made improper donations in New York. Michael Barr Bloomberg Radio.
Speaker 13: Adams was supposed to be with the mayors of Chicago
Speaker 13: and Denver. It asked Congress to approve President Biden's request
Speaker 13: at one point four billion dollars to help the cities
Speaker 13: and states in the migrant crisis. Denver Mayor Mike Johnston,
Speaker 13: We're both.
Speaker 10: Grateful for what they've done.
Speaker 14: It's critical for us that this package passes over the
Speaker 14: next several weeks to get funding to cities, otherwise we'll
Speaker 14: have catastrophic impacts.
Speaker 12: The Democratic Mayor's trying to put pressure on the Bided
Speaker 12: administration to address the humanitarian crisis caused by record crossings
Speaker 12: at the southern border. The Senate had voted ninety five
Speaker 12: to one to confirm Admiral Linda Franchetti to be the
Speaker 12: next Chief of Naval Operations, making her the first woman
Speaker 12: to be a US military service chief. Set of Majority
Speaker 12: Lye Chuck Schumer and.
Speaker 15: Admiral Fanchette is an exceptional leader with a distinguished career
Speaker 15: serving our nation. I'm confident she has the experience, the skills,
Speaker 15: and the vision to succeed as the US Navy's top
Speaker 15: naval As the US Navy's top.
Speaker 12: Officer, Franchetti's confirmation comes amid a temporary break from a
Speaker 12: blockade by Senator Tommy Tubberville, stalling hundreds of military promotions.
Speaker 12: Riding high on historic contract wins against Detroit's automakers. Uaputy
Speaker 12: president Sean Faine is confident he can now take on
Speaker 12: Tesla and it's Anta Union chief Elon Musk. In an
Speaker 12: interview with Bloomberg yesterday, Fain said, we can beat anybody
Speaker 12: global news twenty four hours a day and whenever you
Speaker 12: want it with Bloomberg News Now. I'm John Tucker, and
Speaker 12: this is Bloomberg.
Speaker 2: Karen, right, John, Thanks, So we bring you news throughout
Speaker 2: the day here on Bloomberg Radio. But now you can
Speaker 2: get the latest news on demand whenever you want it.
Speaker 2: Subscribe to Bloomberg News Now to get the latest headlines
Speaker 2: at the click of a button. Get informed on your schedule.
Speaker 2: You can listen and subscribe to Bloomberg News Now on
Speaker 2: the Bloomberg Business app, Bloomberg dot com plus Apple, Spotify,
Speaker 2: and anywhere else you get your podcasts. Time now for
Speaker 2: the Bloomberg Sports Update. Here's John stash Hour, John.
Speaker 16: Karen Weick nine in the NFL Underway with an AFC
Speaker 16: game in Pittsburgh. The Steelers and Titans were tied at ten,
Speaker 16: then at thirteen, Pittsburgh trailed in the fourth quarter.
Speaker 8: Ticket in the shotgut gets the snap looks right, the Ted.
Speaker 13: Johnson wide open touchdown Pittsburgh. The Steelers bunch in ninety
Speaker 13: two yards. Check take Tully.
Speaker 9: That's theont Te Johnson's first touchdown.
Speaker 13: And what a couple of seasons does.
Speaker 16: Twenty Games TV had the calls. The Steelers beat the
Speaker 16: Titans twenty to sixteen. Pittsburgh's five and three. Tennessee is
Speaker 16: three and five. In Victor Weberanna's fifth NBA game, the
Speaker 16: Spurs rookie Sensations scored thirty eight points. He had ten
Speaker 16: rebounds some highlight reel baskets as the San Antonio Spurs
Speaker 16: blew a twenty seven point lead but still beat Phoenix
Speaker 16: won thirty two to one twenty one. Philadelphia's three to one,
Speaker 16: one by fifteen over Toronto. Joel Mbiid scored twenty eight.
Speaker 16: The Pelicans are four to one. They played without Zion Williamson. CJ.
Speaker 16: McCollums scored thirty three and win over Detroit. Orlando won
Speaker 16: by two at Utah. Palo Bankero scored thirty. The games
Speaker 16: tonight in the NBA marked the beginning of the NBA's
Speaker 16: in season tournament. The Bruins are nine to ozhoin one
Speaker 16: they beat Toronto three two in a shootout. Nelson Cruz
Speaker 16: announced his retirement at age forty three. Played nineteen seasons
Speaker 16: for eight different teams, at four hundred and sixty four
Speaker 16: home runs as expected World Series ratings, the lowest ever
Speaker 16: one hundred and thirty baseball players will be free agents.
Speaker 16: Heading the list show at AO time, John Stanshywer Bloomberg Sports.
Speaker 8: From coast to coast, from New York to San Francisco,
Speaker 8: Boston to Washington, DC, nationwide on SiriusXM, the Bloomberg Business
Speaker 8: app in Bloomberg dot com. This is Bloomberg Daybreak.
Speaker 3: Good morning, I'm Nathan Hager. Guilty on all counts after
Speaker 3: a month long trial, Sam Bankman Freed is convicted in
Speaker 3: one of the biggest cases of financial fraud in decades
Speaker 3: over the collapse of his FTX crypto empire. For more
Speaker 3: reaction to this outcome, we are joined now by Bloomberg
Speaker 3: Law host June Grosso. It's good to have you back
Speaker 3: with us this morning. Of course, this came after more
Speaker 3: than fifteen days of testimony that this jury heard. In
Speaker 3: the end, though it did take only about five hours
Speaker 3: for those jurors to come back with a verdict. Your thoughts, Yeah, it.
Speaker 4: Was a very quick verdict. I think that the evidence
Speaker 4: in this case was overwhelming. The prosecution had not only
Speaker 4: documents that they could present, but they also had three insiders,
Speaker 4: three witnesses who were close friends of Sam Bankman Freed,
Speaker 4: one a former girlfriend of his, who were in on
Speaker 4: the process, in on what happened. And they testified and
Speaker 4: their testimony was very, you know, conclusive, and the cross
Speaker 4: examinations really didn't expose many holes in their testimony. And
Speaker 4: you also had the fact that Sam Bankman Freed took
Speaker 4: the stand, and when a defendant takes the stand, the
Speaker 4: focus for the jury then becomes the credibility of that defendant.
Speaker 4: And while he did pretty well on direct examination, on
Speaker 4: cross examination, the cross examination was just withering and he
Speaker 4: said I don't know or words to that effect more
Speaker 4: than a hundred times. So I think that in this case,
Speaker 4: his taking the stand, which was a risky move. Everyone
Speaker 4: knows that it's a risky move for a defendant to
Speaker 4: take the stand, and it worked against him.
Speaker 3: Here, was that the biggest mistake that Sam Bankman Freed
Speaker 3: made to take the stand, or or is there something
Speaker 3: more that he could have done to try to rebut
Speaker 3: that testimony from as you say, what used to be
Speaker 3: his closest friends, his inner circle.
Speaker 4: Well, you know, it's.
Speaker 17: Hard to say.
Speaker 4: I don't want to characterize it as a mistake really
Speaker 4: because I don't know that he had any other choice.
Speaker 4: The evidence against him, as I said, was building, building, building.
Speaker 4: He had those those witnesses who turned against him, and really,
Speaker 4: what else could he have done but take the stand.
Speaker 4: He really had no other recourse. It was sort of
Speaker 4: forced on him as the trial was going on, the
Speaker 4: question will he take the stand or not? And the
Speaker 4: analysis was, well, he has the kind of personality to
Speaker 4: want to take the stand. I mean, look at all
Speaker 4: the times he's talked in the media. But everyone knew
Speaker 4: that on cross examination he was going to be confronted
Speaker 4: with not only the testimony of the three people who
Speaker 4: are closest to him at FTX and Alimeter Research who
Speaker 4: turned on him, but also all the statements that he made,
Speaker 4: all the times he talked to the media about FTX
Speaker 4: after the bankruptcy. So but what else could he do?
Speaker 4: It was it was a hail Mary pass and he
Speaker 4: took it. But you know, the choice was really there
Speaker 4: wasn't really wasn't much choice because it was so overwhelming
Speaker 4: at that point that, you know, he had to take
Speaker 4: the chance.
Speaker 3: And there was, as you mentioned, so much overwhelming testimony
Speaker 3: against him before he took the standard. Even before that testimony,
Speaker 3: I mean, he lost a number of pre trial motions
Speaker 3: that kept him from calling expert witnesses. And of course
Speaker 3: there was that moment even before he was allowed to
Speaker 3: testify before a jury, where he got on the stand
Speaker 3: in front of the judge to argue for being allowed
Speaker 3: to testify about advice from his lawyers. So I mean
Speaker 3: he had a number of hands tied behind his back,
Speaker 3: didn't he.
Speaker 4: Yeah, I think you know so much. Many of the motions,
Speaker 4: every big one that I can think of, the judge
Speaker 4: ruled against him, and in particular, he was on the stand,
Speaker 4: as you mentioned, about three hours testifying before the judge,
Speaker 4: so the judge could decide whether or not he could
Speaker 4: get used an advice of council defense, and that was
Speaker 4: really critical to his defense his lawyers, and he wanted
Speaker 4: to say that what he did he did because he
Speaker 4: was relying on the advice of his attorneys, and the
Speaker 4: judge said that he could not do that. I mean,
Speaker 4: the judge even ruled before trial that they couldn't use that,
Speaker 4: they couldn't talk about that in their opening statements to
Speaker 4: the jury. And then then he had those three hours
Speaker 4: on the stands where the judge decided that he couldn't
Speaker 4: use that and he couldn't talk about that in front
Speaker 4: of the jury, and that was really a hit on
Speaker 4: his defense. And if you go back, I mean, even
Speaker 4: before the trial, the judge, as you mentioned, said that
Speaker 4: he couldn't use expert witnesses. And the judge threw him
Speaker 4: into jail after he had communicated with the press, and
Speaker 4: that was really a surprise too, because he had a
Speaker 4: huge bail package and the defense was coming in to
Speaker 4: agree that day to a gag order. Instead the judge
Speaker 4: decided that he was going to throw him into jail
Speaker 4: weeks before the trial, and that really puts a strain
Speaker 4: on the defense in more ways than one. I mean,
Speaker 4: not only did he not have his adderall when he
Speaker 4: was in jail, not have the right dose of it,
Speaker 4: but he's a vegan and he didn't get the kind
Speaker 4: of food he eats. He didn't get the kind of
Speaker 4: foods at the Brooklyn Detention Center. So everyone saw that
Speaker 4: he lost a lot of weight when it came to
Speaker 4: the courtroom. But more than that, it's very difficult to
Speaker 4: prepare for trial when you're behind bars and your lawyer
Speaker 4: has to make appointments to meet you, and you don't
Speaker 4: have access to all the documents and the internet and
Speaker 4: the things you need. So it really was an uphill
Speaker 4: battle for him from the very beginning.
Speaker 3: And so we've had this uphill battle go on for
Speaker 3: just about a month. After a relatively quick jury decision,
Speaker 3: we are expecting that Sam Bankminfried and his lawyers are
Speaker 3: going to appeal this verdict. How do you expect that to.
Speaker 4: Go now, Well, you know, they have a lot of
Speaker 4: issues that they can appeal on, and they're the ones
Speaker 4: that I was just talking about, the judge turning down
Speaker 4: the advice of council and the expert witnesses, and I'm
Speaker 4: sure they have a lot more from what happened at trial,
Speaker 4: but it's it's very difficult to get a conviction reversed
Speaker 4: on appeal. It happens, but it's very difficult because a
Speaker 4: lot of these decisions are what they say, you know,
Speaker 4: in the discretion of the judge, and the appellate court
Speaker 4: won't touch a lot of a lot of these decisions
Speaker 4: if they feel that it was in the discretion of
Speaker 4: the judge and that these may all fit in that category.
Speaker 4: So you know they will.
Speaker 17: They do have a lot to talk about, they do
Speaker 17: have a lot to raise on appeal, but you know
Speaker 17: it's another uphill battle for him.
Speaker 14: This is Bloomberg day Break Today, your morning brief on
Speaker 14: the stories making news from Wall Street to Washington and beyond.
Speaker 2: Look for us on your podcast feed at six am
Speaker 2: Eastern each morning, on Apple, Spotify, and anywhere else you
Speaker 2: get your podcasts.
Speaker 14: You can also listen live each morning starting at five
Speaker 14: am Wall Street time on Bloomberg eleven three to zero
Speaker 14: in New York, Bloomberg ninety nine one in Washington, Bloomberg
Speaker 14: one oh six' one in Boston, and Bloomberg ninety sixty
Speaker 14: in San Francisco.
Speaker 2: Our flagship New York station is also available on your
Speaker 2: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty plus.
Speaker 14: Listen coast to coast on the Bloomberg Business app, serious
Speaker 14: XM Channel one nineteen, the iHeartRadio app, and on Bloomberg
Speaker 14: dot Com.
Speaker 1: I'm Nathan Hager
Speaker 2: And I'm Karen Moss Bikal join us again tomorrow morning
Speaker 2: for all the news you need to start your day
Speaker 2: right here on Bloomberg Daybreak