Speaker 1: Hi, It's Carol and Tim's here too, and today we
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Speaker 2: We certainly do every day. Nathan Hager, Karen Moscow, and
Speaker 2: Amy Morris bring you a roundup of the top stories
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Speaker 2: all in the Daybreak podcast feed by six am each morning.
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Speaker 3: Good morning, I'm Nathan Hager.
Speaker 4: And I'm Karen Moscow. Here are the stories we're following today.
Speaker 5: We begin with a guilty verdict for Sam Bankman Free.
Speaker 5: It took a jury less than five hours to convict
Speaker 5: the FTX co founder of seven counts of fraud and conspiracy.
Speaker 5: Bloomberg's June Grossow begins our team coverage.
Speaker 6: It's not a surprise because the evidence against him was overwhelming.
Speaker 7: And think, what did it is? Sam magmcfred took the
Speaker 7: stand in his own defense and when to defend and
Speaker 7: takes down that way the whole thing and the jury's
Speaker 7: mind becomes a credibility game. How incredible did they find him?
Speaker 5: Bloomberg's June Grosso says Sam Bankminfried faces as much as
Speaker 5: twenty years in prison on each of the most serious charges.
Speaker 5: He'll be sentenced in March.
Speaker 4: Well Nathan Bloomberg. The legal reporter Ava Benny Morrison was
Speaker 4: in the courtroom during the verdict, and she continues our
Speaker 4: team coverage.
Speaker 8: He was pretty emotionless. He was asked to stand up
Speaker 8: by the judge. When the jury delivered its verdict, he
Speaker 8: faced the jury box. He held his hands in front
Speaker 8: of him and it looked like he was stearing down
Speaker 8: at the floor as the jury. As the fourth person
Speaker 8: for the jury confirmed guilty to each of the seven charges.
Speaker 8: He then sat back down. When the jury walked out
Speaker 8: of the room. He was whispering with his lawyers. He
Speaker 8: was nodding a lot. While he wasn't very emotional, his
Speaker 8: parents were. They were holding each other. His dad doubled
Speaker 8: over at one point.
Speaker 4: Bloomberg legal reporter Ava Benny Morrison reports Bankman's lawyer is
Speaker 4: considering an appeal.
Speaker 5: Hey Karen Bloomberg. Business Week investigative reporter Zeke Fox wrote
Speaker 5: a book on ftx's crypto rollercoaster, and he says bankmin
Speaker 5: Freed struggled under cross examination.
Speaker 9: When his own lawyer was questioning him, he had a
Speaker 9: lot to say, but when the prosecution had there turned
Speaker 9: a cross examine, he suddenly didn't remember anything. And in
Speaker 9: one moment that was dramatic, I mean, especially for me.
Speaker 9: The prosecutor asked her that she asked him about the
Speaker 9: statement there was more leeway, and he said, I don't
Speaker 9: remember saying anything like that. She whipped out a copy
Speaker 9: of my book, number go up and walked it over
Speaker 9: to him, like the hard copy, and was like turn
Speaker 9: to page two twenty four.
Speaker 5: In Bloomberg Business Week, Zeke Fox ads the conviction is
Speaker 5: the first in a wave of legal action against crypto companies.
Speaker 4: Nathan now to the other major trial happening in New York,
Speaker 4: Donald Trump's two hundred and fifty million dollars Sibyl fraud case.
Speaker 4: The former president's two oldest sons took turns on the
Speaker 4: witness stand, denying any role in preparing their company's financial records. Afterward,
Speaker 4: Donald Trump Junior addressed reporters.
Speaker 10: Before even having a day in court, I'm apparently guilty
Speaker 10: of fraud for relying on my accountants to do wait
Speaker 10: for it, accounting.
Speaker 4: Donald Trump Junior's brother Eric is set to continue testifying today.
Speaker 4: Their sister, Evonka will take the stand next week. She
Speaker 4: lost an appeal to delay her testimony.
Speaker 5: Well, Karen, we now turn to the war in the
Speaker 5: Middle East. Secretary of State Anthony Blinken is back in
Speaker 5: Tel Aviv.
Speaker 11: We're determined that this conflict Nott spread and we'll be
Speaker 11: talking to both the Israeli government partners in the region
Speaker 11: about what all of us are doing to.
Speaker 12: Prevent that from happening.
Speaker 5: I mean Secretary of State b Lincoln's arrival comes as
Speaker 5: ground operations continue in Gaza. The Hamas run Health Ministry
Speaker 5: says more than nine thousand Palestinians have died in the fighting.
Speaker 5: Israel says seventeen of its soldiers have been killed.
Speaker 4: Well, Nathan, the House has passed the Aid for Israel bill,
Speaker 4: but Bloomberg's Ad Baxter reports it may have a troubled future.
Speaker 12: This is a victory for House Speaker Mike Johnson, but
Speaker 12: it looks as if it is dead to become law.
Speaker 12: Senate majority leader Chuck Schumer has been saying taking funding
Speaker 12: from IRS enforcement is a bad idea, and President Biden
Speaker 12: is out saying if it were to hit his desk,
Speaker 12: he would not sign it. House Speaker Johnson says it
Speaker 12: will get done.
Speaker 9: There is absolutely no equivocation here.
Speaker 12: We have to stay with Israel, and Republican Congressman Tom
Speaker 12: Cole says there are different paths to get the aid.
Speaker 11: We have a lot of unspent money.
Speaker 12: We ought to use that toward a more important purpose,
Speaker 12: and that's Israel. So the issue is far from settled.
Speaker 12: Ad Baxter Bloomberg Radio.
Speaker 5: Okay and thank you. Turning the market. Shares of Apple
Speaker 5: are down more than three percent. The world's most valuable
Speaker 5: company reported its fourth straight sales decline and its warning
Speaker 5: holiday revenue will be about the same as last year.
Speaker 5: Angelo Zeno, as senior equity analyst at CFRAA Research, it's.
Speaker 13: Not the most favorable landscape out there four PCs, even
Speaker 13: though the broader PC landscape appears to have found some
Speaker 13: sort of putting for the time being, but at the
Speaker 13: end the day, the consumer landscape is still very challenging in.
Speaker 5: Nature cfar as Angelosino says, the results also suggest Apples
Speaker 5: facing at acceleration in China.
Speaker 4: Well Nathanother stocks on the move this morning, shares of
Speaker 4: DraftKings up seven percent. The sports betting operator reported sales
Speaker 4: and player numbers that beat analysts expectations, Block shares surging
Speaker 4: more than eighteen percent. The Payments Giant run by Jack Dorsey,
Speaker 4: again boosting its profit forecast for the year, and shares
Speaker 4: of Booking dropping as much as seven percent in light trading.
Speaker 4: The company formerly known as Price Lines as travel demand
Speaker 4: had been diminished by the Israel Hamas war.
Speaker 5: On the economic front, Karen a busy week concludes with
Speaker 5: the October Jobs Report. A preview of that now from
Speaker 5: Bloomberg's Michael McKee.
Speaker 14: FED chair J Powell says a tight labor market could
Speaker 14: lead to another rate move, which means markets will parse
Speaker 14: the October jobs report trying to determine what it signals.
Speaker 14: Is hiring still much stronger than what's needed to absorb
Speaker 14: an increasing labor force. Have higher interest rates led companies
Speaker 14: to pull back on hiring or even start letting people go.
Speaker 14: Our company's still paying up to attract workers, while the
Speaker 14: FED we'll also see the November payrolls report before its
Speaker 14: next meeting. Powell says it will take several months of
Speaker 14: data to make any decisions. Michael McKee, Bloomberg Radio.
Speaker 4: All right, Nathan, thank you. It is time now for
Speaker 4: a look at some of the other stories making news
Speaker 4: around the world. And for that we're joined by Bloomberg's
Speaker 4: John Tucker, John, good Morning.
Speaker 15: And Karen. Something maybe rotten in the Big Apple. The
Speaker 15: mayor's fundraising campaign is under investigation. Let's get more on
Speaker 15: this report from Bloomberg's Michael Barr.
Speaker 16: Mayor Adams ditched White House meeting on the migrant crisis
Speaker 16: and flew back to the city. The mayor explaining his
Speaker 16: abrupt return.
Speaker 11: But you probably heard the reports involved in one of
Speaker 11: my campaign staffers.
Speaker 16: Staffer is lead fundraiser, twenty five year old Brianna Suggs,
Speaker 16: whose Brooklyn home was raided by the FBI, along with
Speaker 16: the office series of a New York construction firm called KSK.
Speaker 16: It made fourteen thousand dollars in campaign contributions. The investigation
Speaker 16: is looking into whether the company, along with Turkish nationals,
Speaker 16: made improper donations in New York. Michael Barr, Bloomberg Radio.
Speaker 16: Adams was supposed to be with the mayors of Chicago
Speaker 16: and Denver. It asked Congress to approve President Biden's request
Speaker 16: at one point four billion dollars to help the cities
Speaker 16: and states in the migrant crisis. Denver Mayor Mike Johnston,
Speaker 16: We're both.
Speaker 14: Grateful for what they've done.
Speaker 3: It's critical for us that this package passes over the
Speaker 3: next several weeks to get funding to cities, otherwise we'll
Speaker 3: have catastrophic impacts.
Speaker 15: The Democratic Mayor's trying to put pressure on the Bided
Speaker 15: administration to address the humanitarian crisis caused by record crossings
Speaker 15: at the southern border. Bassena had voted ninety five to
Speaker 15: one to confirm Admiral Linda Franchetti to be the next
Speaker 15: Chief of Naval Operations, making her the first woman to
Speaker 15: be a US military service chief. Set of Majority Leader
Speaker 15: Chuck Schumer.
Speaker 17: And Admiral Fanchette is an exceptional leader with a distinguished
Speaker 17: career serving our nation. I'm confident she has the experience,
Speaker 17: the skills, and the vision to succeed as the US
Speaker 17: Navy's top naval as the US Navy's top officer.
Speaker 15: Friend Shetty's confirmation comes amid a temporary break from a
Speaker 15: blockade by Senator Tommy Tubberville stalling hundreds of military promotions
Speaker 15: riding high on historic contract wins against Detroit's automakers. UAWTY
Speaker 15: president Sean Faine is confident he can now take on
Speaker 15: Tesla and it's Anta Union chief Alon Musk. In an
Speaker 15: interview with Bloomberg yesterday, Fain said, we can beat anybody
Speaker 15: global news twenty four hours a day and whenever you
Speaker 15: want it with Bloomberg News Now. I'm John Tucker and
Speaker 15: this is Bloomberg.
Speaker 5: Karen Right, John.
Speaker 4: Thanks so we bring you news throughout the day here
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Speaker 4: else you get your podcasts. Time now for the Bloomberg
Speaker 4: Sports Update. Here's John stash Hour John Karen Wick nine.
Speaker 18: In the NFL Underway with an AFC game in Pittsburgh.
Speaker 18: The Steelers and Titans were tied at ten, then at thirteen.
Speaker 16: Pittsburgh trailed in the fourth quarter.
Speaker 11: Ticket in the shotgun gets the snap looks right.
Speaker 16: Theyon Ted Johnson wide open touchdown Pittsburgh. The Steelers bunch
Speaker 16: in ninety two yards. Take dully, that's the Tae Johnson's
Speaker 16: first touchdown and what a couple season does.
Speaker 18: Twenty Games TV had the calls. The Steelers beat the
Speaker 18: Titans twenty to sixteen. Pittsburgh's five and three. Tennessee is
Speaker 18: three and five. In Victor Weberana's fifth NBA game, the
Speaker 18: Spurs rookie Sensations scored thirty eight points. He had ten
Speaker 18: rebounds some highlight reel baskets as the San Antonio Spurs
Speaker 18: blew a twenty seven point lead but still beat Phoenix
Speaker 18: won thirty.
Speaker 16: Two to one twenty one.
Speaker 18: Philadelphia three and one, one by fifteen over Toronto. Joel
Speaker 18: mbid score twenty eight. The Pelicans are four and one.
Speaker 18: They played without Zion Williamson.
Speaker 4: CJ.
Speaker 18: McCollums scored thirty three and win over Detroit. Orlando won
Speaker 18: by two at Utah Paalo Bonkero scored thirty. The games
Speaker 18: tonight in the NBA marked the beginning of the NBA's
Speaker 18: in season tournament. The Bruins are nine to OZHO one.
Speaker 18: They beat Toronto three two in a shootout. Nelson Cruz
Speaker 18: announced his retirement at age forty three. Played nineteen seasons
Speaker 18: for eight different teams at four hundred and sixty four
Speaker 18: home runs as expected World Series ratings, the lowest ever
Speaker 18: one hundred and thirty baseball players will be free agents.
Speaker 18: Heading the list show Ao Time, John Stanshaur Bloomberg Sports.
Speaker 11: From coast to coast, from New York to San Francisco,
Speaker 11: Boston to Washington, DC, nationwide on SIRISXAM, the Bloomberg Business
Speaker 11: Appen Bloomberg dot Com. This is Bloomberg Daybreak.
Speaker 5: Good morning. I'm Nathan Hager. Guilty on all counts after
Speaker 5: a month long trial, Sam Bankman Freed is convicted in
Speaker 5: one of the biggest cases of financial fraud in decades
Speaker 5: over the collapse of his FTX crypto empire. For more
Speaker 5: reaction to this outcome, we are joined now by Bloomberg
Speaker 5: Law host June Grosso. It's good to have you back
Speaker 5: with us this morning. Of course, this came after more
Speaker 5: than fifteen days of testimony that this jury heard. In
Speaker 5: the end, though it did take only about five hours
Speaker 5: for those jurors to come back with a verdict. Your thoughts.
Speaker 6: Yeah, it was a very quick verdict. I think that
Speaker 6: the evidence in this case was overwhelming. The prosecution had
Speaker 6: not only documents that they could present, but they also
Speaker 6: had three insiders, three witnesses who were close friends of
Speaker 6: Sam Bankman Freed, one a former girlfriend of his, who
Speaker 6: were in on the process, in on what happened, and
Speaker 6: they testified and their testimony was very, you know, conclusive,
Speaker 6: and the cross examinations really didn't expose many holds in
Speaker 6: their testimony. And you also had the fact that Sam
Speaker 6: Bankman Freed took the stand, and when a defendant takes
Speaker 6: the stand, the focus for the jury then becomes the
Speaker 6: credibility of that defendant. And while he did pretty well
Speaker 6: on direct examination, on cross examination, the cross examination was
Speaker 6: just withering and he said I don't know or words
Speaker 6: to that effect more than a hundred times. So I
Speaker 6: think that in this case, he's taking the stand, which
Speaker 6: was a risky move. Everyone knows that it's a risky
Speaker 6: move for a defendant to take the stand, and it
Speaker 6: worked against him.
Speaker 5: Here, was that the biggest mistake that Sam Bankman Freed
Speaker 5: made to take the stand, or is there something more
Speaker 5: that he could have done to try to rebut that
Speaker 5: testimony from as you say, what used to be his
Speaker 5: closest friends, his inner circle.
Speaker 6: Well, you know, it's hard to say. I don't want
Speaker 6: to characterize it as a mistake really because I don't
Speaker 6: know that he had any other choice. The evidence against him,
Speaker 6: as I said, was building, building, building. He had those
Speaker 6: those witnesses who turned against him, and really, what else
Speaker 6: could he have done but take the stand. He really
Speaker 6: had no other recourse. It was sort of forced on
Speaker 6: him as the trial was going on, the question will
Speaker 6: he take the stand or not? And the analysis was, well,
Speaker 6: he has the kind of personality to want to take
Speaker 6: the stand. I mean, look at all the times he's
Speaker 6: talked in the media. But everyone knew that on cross
Speaker 6: examination he was going to be confronted with not only
Speaker 6: the testimony of the three people who were closest to
Speaker 6: him at FTX and Alimeter Research who turned on him,
Speaker 6: but also all the statements that he made, all the
Speaker 6: times he talked to the media about FTX after the bankruptcy.
Speaker 6: So but what else could he do? It was it
Speaker 6: was a hail Mary pass and he took it. But
Speaker 6: you know, the choice was really there wasn't really wasn't
Speaker 6: much choice because it was so overwhelming at that point that,
Speaker 6: you know, he had to take the chance.
Speaker 5: And there was, as you mentioned, so much overwhelming testimony
Speaker 5: against him before he took the standard. Even before that testimony,
Speaker 5: I mean, he lost a number of pre trial motions
Speaker 5: that kept him from calling expert witnesses. And of course
Speaker 5: there was that moment even before he was allowed to
Speaker 5: testify before a jury, where he got on the stand
Speaker 5: in front of the judge to argue for being allowed
Speaker 5: to testify about advice from his lawyers. So I mean
Speaker 5: he had a number of hands tied behind his back,
Speaker 5: didn't he.
Speaker 6: Yeah, I think, you know, so many of the motions,
Speaker 6: every big one that I can think of, the judge
Speaker 6: ruled against him, and in particular, he was on the
Speaker 6: stands you mentioned about three hours testifying before the judge,
Speaker 6: so the judge could decide whether or not he could
Speaker 6: get used an advice of council defense, and that was
Speaker 6: really critical to his defense his lawyers, and he wanted
Speaker 6: to say that what he did he did because he
Speaker 6: was relying on the advice of his attorneys, and the
Speaker 6: judge said that he could not do that. I mean,
Speaker 6: the judge even ruled before trial that they couldn't use that,
Speaker 6: they couldn't talk about that in their opening statements to
Speaker 6: the jury. And then then he had those three hours
Speaker 6: on the stands where the judge decided that he couldn't
Speaker 6: use that and he couldn't talk about that in front
Speaker 6: of the jury, and that was really a hit on
Speaker 6: his defense. And if you go back, I mean even
Speaker 6: before the trial, the judge, as you mentioned, said that
Speaker 6: he couldn't use expert witnesses. And the judge threw him
Speaker 6: into jail after he had communicated with the press, and
Speaker 6: that was really a surprise too, because he had had
Speaker 6: a huge bail package and the defense was coming in
Speaker 6: to agree that day to a gag order. Instead the
Speaker 6: judge decided that he was going to throw him into
Speaker 6: jail weeks before the trial, and that really puts a
Speaker 6: strain on the defense in more ways than one. I mean,
Speaker 6: not only did he not have his adderall when he
Speaker 6: was in jail, not have the right dose of it,
Speaker 6: but he's a vegan and he didn't get the kind
Speaker 6: of food he eats. He didn't get the kind of
Speaker 6: foods at the Brooklyn Detention Center. So everyone saw that
Speaker 6: he lost a lot of weight when it came to
Speaker 6: the courtroom. But more than that, it's very difficult to
Speaker 6: prepare for trial when you're behind bars and your lawyer
Speaker 6: has to make appointments to meet you, and you don't
Speaker 6: have access to all the documents and the internet and
Speaker 6: the things you need. So it really was an uphill
Speaker 6: battle for him from the very beginning.
Speaker 5: And so we've had this uphill battle go on for
Speaker 5: just about a month. After a relatively quick jury decision,
Speaker 5: we are expecting that Sam Bankminfried and his lawyers are
Speaker 5: going to appeal this verdict. How do you expect that
Speaker 5: to go.
Speaker 6: Now, Well, you know, they have a lot of issues
Speaker 6: that they can appeal on, and they're the ones that
Speaker 6: I was just talking about the judge turning down the
Speaker 6: advice of counsel and the expert witnesses, and I'm sure
Speaker 6: they have a lot more from what happened at trial,
Speaker 6: but it's it's very difficult to get a conviction reversed
Speaker 6: on appeal. It happens, but it's very difficult because a
Speaker 6: lot of these decisions are what they say, you know,
Speaker 6: in the discretion of the judge, and the appellate court
Speaker 6: won't touch a lot of a lot of these decisions
Speaker 6: if they feel that it was in the discretion of
Speaker 6: the judge and that these may all fit in that category.
Speaker 6: So you know they will. They do have a lot
Speaker 6: to talk about, They do have a lot to raise
Speaker 6: on appeal, but you know it's another uphill battle for him.
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