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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. This is the Bloomberg

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Speaker 1: day Break podcast, available every morning on Apple, Spotify or

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Speaker 1: wherever you listen. It's Thursday, the twenty sixth of September

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Speaker 1: in London. I'm Caroline Hepgar. Coming up today. Open Ai

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Speaker 1: discusses becoming a for profit company and giving founder Sam

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Speaker 1: Altman a sizable steak. Western allies and Arab powers propose

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Speaker 1: a CEASEFA deal between Israel and Hezbolla in a bid

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Speaker 1: to avoid all out war, plus walking a fine diplomatic line.

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Speaker 1: Kis Starmer plans to meet Donald Trump today as global

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Speaker 1: leaders hedged their bets on the next US president. Let's

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Speaker 1: start with a roundup of our top stories. Bloomberg understands

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Speaker 1: that open Ai is discussing giving Sam Altman a seven

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Speaker 1: percent equity steak and becoming a for profit business. The

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Speaker 1: move would be a major shift for the firm behind

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Speaker 1: chat gpt, the first time it's CEO would be granted ownership.

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Speaker 1: Bluemeg's Annabel Drulers says it's also an abrupt change for

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Speaker 1: the AI firm.

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Speaker 2: Well, it certainly would be a bit of an about turn.

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Speaker 2: I mean, Sam Altman is someone who in the past

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Speaker 2: has really said that he didn't want to have any

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Speaker 2: sort of equity stake in the company. He was telling

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Speaker 2: people that he already had enough money and that this

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Speaker 2: was a company that was supposed to be benefiting society broadly.

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Speaker 2: It does also speak to this biggest story that we've

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Speaker 2: also been talking around as well, which is that open

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Speaker 2: ai is looking at changing the structure of the business.

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Speaker 1: Our reporter Annabel Dreula's there So also say the transition

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Speaker 1: is still under discussion and a timeline has not been determined.

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Speaker 1: The proposal comes amidst the raft of senior departures, including

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Speaker 1: the chief technology officer, Mira Murrati. On Wednesday, in a statement,

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Speaker 1: an open ai spokesperson said the business remains focused on

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Speaker 1: building AI that benefits everyone. China is considering a one

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Speaker 1: hundred and forty two billion dollar capital injection into its

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Speaker 1: biggest state banks to help them support the country's struggling economy.

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Speaker 1: Bloomberg has learned that most of the funding will come

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Speaker 1: from the issuance of a new special sovereign bond, but

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Speaker 1: our China corresponds at midmn Low says that the sector

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Speaker 1: is not in crisis.

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Speaker 3: I don't think we should see it as the bank's

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Speaker 3: being distressed, because if you look at the capital adequacy racial,

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Speaker 3: it is for the big banks still well above the

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Speaker 3: requirement of eight point five percent. The average now is

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Speaker 3: about eleven point seven percent. So this is really to

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Speaker 3: support these banks at a time when their profit margins

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Speaker 3: has been hit. It's at about one point five percent

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Speaker 3: as of engine, which is significantly below the threshold of

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Speaker 3: one point eight percent that is deemed to be reasonable profits.

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Speaker 1: Bloomberg's midmn Low speaking there. The movie is part of

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Speaker 1: a broader economic stimulus package that we've seen unveiled this week,

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Speaker 1: which included reductions to mortgage and key policy interest rates.

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Speaker 1: Though the details are yet to be finalized and they

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Speaker 1: are subject to change. The action would be the first

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Speaker 1: time that Beijing has injected capital into its big banks

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Speaker 1: since the two thousand and eight global financial crisis. The US,

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Speaker 1: Our Powers and all other members of the G seven

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Speaker 1: have proposed a three week ceasepar between Israel and Hezbola.

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Speaker 1: It is a bid to avert all out war after

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Speaker 1: days of Israeli air strikes or Lebanon, where Hezbola is embedded.

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Speaker 1: Lebanon's economy and trade Minister Amin Salam told Bloomberg there

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Speaker 1: is not much time left.

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Speaker 4: The next twenty four hours would be very critical because

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Speaker 4: we are at a very serious turning point. If a

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Speaker 4: cease fire is to be accomplished now, we would really

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Speaker 4: have helped Lebanon, will have helped the region and avoided

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Speaker 4: a full scale war that is very very close to happen,

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Speaker 4: you know, in the few hours and a few days

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Speaker 4: ahead of US.

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Speaker 1: Lebanon's Trade and Economy Minister Amen Salam speaking there, He

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Speaker 1: adds that he has spoken to Hezbollah and that the

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Speaker 1: group recognized the need to avoid escalation. Israel as un

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Speaker 1: envoy told the Security Council that his country did not

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Speaker 1: seek a full scale war. Donald Trump has lashed out

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Speaker 1: at Ukrainian leader of Lodove Zelenski for criticizing him. The

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Speaker 1: Ukrainian president has questioned Trump's pledges to negotiate a quick

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Speaker 1: end to the war in Ukraine if elected. Trump did

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Speaker 1: not take the comment, well.

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Speaker 5: The president of Ukraine is in our country and he's

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Speaker 5: making little nasty aspersions toward your favorite president me. But

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Speaker 5: take a look at the war happening right now in Ukraine.

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Speaker 5: It would have never happened if I were president to

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Speaker 5: start off with, A deal could have been made if

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Speaker 5: we had a competent president instead of a president that

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Speaker 5: egged it all on.

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Speaker 6: And Biden and Kaman allowed this to happen by feeding

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Speaker 6: Zalynsky money and munitions like no country has ever seen before.

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Speaker 5: Every time he came to our country, he'd walk away

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Speaker 5: with sixty billion dollars. It's probably the greatest salesman on earth.

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Speaker 1: The Republican presidential nominee also said that he has no

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Speaker 1: plans to meet the Ukrainian leader. One person Donald Trump

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Speaker 1: will be meeting is the UK Prime Minister, Kiss Darma.

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Speaker 1: The British leader hopes to build relations with both presidential

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Speaker 1: nominees and global business trips on his trip to the US.

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Speaker 1: The meetings come as more economic gauges are showing the

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Speaker 1: UK government's narrative around a tough budget to come is

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Speaker 1: shaking confidence. The British Retail Consortium says that belief in

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Speaker 1: the strength of the economy fell by thirteen points in

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Speaker 1: August in contrast to the gloom, Though the OECD upgraded

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Speaker 1: Britain's growth for the next two years by more than

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Speaker 1: any other G seven nation. The organization's chief Economists. Alva

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Speaker 1: ro Pereira says that's because of the government's missions.

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Speaker 7: The emphasis on growth is key and the emphasis on

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Speaker 7: reform is key. In fact, what are we saying around

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Speaker 7: the world, not only for the UK, but around the

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Speaker 7: world that now that we are turning the corner on inflation,

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Speaker 7: it's time to turn the on fiscal That means to

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Speaker 7: go to fiscally prudent policies and also on reforms. In

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Speaker 7: what we've heard in terms of growth, I think makes sense.

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Speaker 1: So that was the OECD's Alva Pereira speaking that the

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Speaker 1: economists also welcomed reports that the UK Chancellor plans to

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Speaker 1: upgrade her fiscal framework to allow more investments. And Quantus

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Speaker 1: Airways ghost flight scandal misled almost one million customers booked

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Speaker 1: on tens of thousands of non existent services. The revelation

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Speaker 1: comes from court documents that show the scale of the

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Speaker 1: misconduct and the airline's awareness of the problem. Quantus settled

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Speaker 1: the lawsuit last year, agreeing to pay one hundred and

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Speaker 1: twenty million Australian dollars in fines and compensation for selling

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Speaker 1: tickets on flights that it had already decided to cancel.

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Speaker 1: The bombshell allegations led to the premiature departure of the

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Speaker 1: chief executive Alan Joyce last year, but it wasn't clear

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Speaker 1: at the time how much Quantus knew about its own

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Speaker 1: ticketing deficiencies. In a moment, we're going to bring you

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Speaker 1: more on the last ditch Ceespha proposals being pushed for

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Speaker 1: Israel and Hezbolla, and also on the chat GPT creator

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Speaker 1: open Ai. The story there, it's been going through something

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Speaker 1: of an existential crisis. What is this metamorphosis going to

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Speaker 1: look like. We'll bring in our tech report of Ladsavov,

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Speaker 1: but first there's another story on the terminal that I

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Speaker 1: thought was worth a couple of moments of your time

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Speaker 1: in the UK. If you're looking for a new role,

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Speaker 1: expect to see more job salaries. About half of UK

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Speaker 1: firms so that they will add pay data to listings

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Speaker 1: when they are advertising a job. This according to a

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Speaker 1: survey from Mercer International. Apparently forty eight percent of businesses

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Speaker 1: said that they'll include pay data in listings in the

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Speaker 1: next two years. That's basically more than double what they're

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Speaker 1: doing at the moment. Why you ask pay Transparency apparently

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Speaker 1: is gaining a momentum. The UK doesn't have rules around this,

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Speaker 1: but the EU and some US states do so. A

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Speaker 1: lot of companies now apparently are taking on the idea

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Speaker 1: of having a global policy about pay information and so

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Speaker 1: maybe that will benefit employees if you see it that

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Speaker 1: way here in the UK. It's a nice story. It's

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Speaker 1: on the Bloomberg terminal for you this morning.

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Speaker 8: Now.

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Speaker 1: The company behind chat GPT is discussing giving CEO Sam

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Speaker 1: Altman a seven percent equity stake. Open Ai is looking

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Speaker 1: at restructuring into a for profit business. It comes after

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Speaker 1: significant upheaval and an exodus of senior leaders. Joining me

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Speaker 1: now to discuss is Bloomberg's tech editor of Ladsavov Plaid.

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Speaker 1: Good morning. Open ai has been having something of an

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Speaker 1: existential crisis. What is the plan now under discussion in

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Speaker 1: terms of the evolution.

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Speaker 9: Well, it has been a very tumultuous years starting with

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Speaker 9: November last year. It was a very quiet time as

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Speaker 9: far as tech news was going in twenty twenty three,

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Speaker 9: and then we had the whole explosion of news around

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Speaker 9: open ai, with Sam Opmer first losing the CEO position

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Speaker 9: and then regaining it in the interim. The person who

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Speaker 9: took over His interim CEO was Mirror Morati, and she

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Speaker 9: is the chief technology officer of the company, or will

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Speaker 9: be until the time that a suitable a suitable successor

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Speaker 9: is found for her. Because she just announced that she's leaving,

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Speaker 9: she's the latest high profile departure. So Indeed, over the

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Speaker 9: past year, open ai has been doing a whole bunch

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Speaker 9: of restructuring, reorganizing and figuring out its own mission. One

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Speaker 9: of the things that sam Opman himself said in a

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Speaker 9: message that he shared with the world on x and

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Speaker 9: to the company is that they will have an old

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Speaker 9: hands meeting on Thursday in the US and they'll take

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Speaker 9: they'll talk more with both staff and everyone involved and

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Speaker 9: just to let them know what the strategy is. So

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Speaker 9: I can answer your question. But hopefully after Thursday, opening

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Speaker 9: itself will give us more clarity.

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Speaker 1: Okay, what does it mean then for the future of

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Speaker 1: open ai and chat GPT.

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Speaker 9: Well, the conflict last year that pushed sam Oman out

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Speaker 9: in the first place had a lot to do with

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Speaker 9: a couple of factions within the company. One was very

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Speaker 9: much concerned with doing responsible save for the benefit of

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Speaker 9: all humanity kind of AI development, which is probably much

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Speaker 9: slower as far as pacing goes than sam Omen liked,

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Speaker 9: and it seems like he is the one who has

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Speaker 9: won out several people. Ilia Sutzkiva is one of the

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Speaker 9: key tech people he left over the course of the

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Speaker 9: past year, alongside Miro Morati, the chief of research and

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Speaker 9: a vice president in charge of research have also announced

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Speaker 9: that they're leaving. So it very much seems like the

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Speaker 9: company is aligning entirely behind sam Open and his vision,

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Speaker 9: and that is a much more commercial When you look

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Speaker 9: at also some of the news and reports that have

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Speaker 9: happened over the recent months, you can see Opening Eye

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Speaker 9: partnering with Apple to distribute its technology on the iPhone.

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Speaker 9: It already has a close relationship with Microsoft. It seems

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Speaker 9: like he's very much pushing toward turning this into a

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Speaker 9: much more conventional commercial tech company.

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Speaker 1: Yeah. Indeed, lastly, I mean, speaking of tech, AI functionality

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Speaker 1: needs more micro needs more memory chips, and so Micron

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Speaker 1: has reported strong earnings. Just a brief line on that.

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Speaker 9: Yeah, I mean, micro outperformed the expectations for the current

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Speaker 9: quarter as far as its forecast went, and the results

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Speaker 9: of that has been an upsurge across the entire semi industry.

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Speaker 9: Here in Asia, most notably s k Heiniz, the leader

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Speaker 9: in providing HPM memory chips for the likes of videos

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Speaker 9: AI accelerators. That's up pretty well, so it does seem

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Speaker 9: to show that the demand for that technology is not

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Speaker 9: dissipating anytime soon.

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Speaker 1: No, lad, absolutely, thank you for being with me now

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Speaker 1: to Lebanon and an urgent effort by the US, Europe

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Speaker 1: and Arab countries to avert an all out war and

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Speaker 1: a potential ground invasion by Israel against Hesbola in Lebanon.

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Speaker 1: Joining me now to discuss is Bloomberg's THEMEA news director

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Speaker 1: Waslyn matheson Good Morning, was the proposal is a three

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Speaker 1: weeks ceasefar between Israel and Hezbollah that would then open

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Speaker 1: the door for a wider negotiation cease far hostage at

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Speaker 1: what are the details here?

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Speaker 10: Well, that's basically it in terms of the details that

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Speaker 10: we have so far. At what seems to be on

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Speaker 10: the table, as you say, is the Arab allies, the

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Speaker 10: US Europe as saying if you agree to a three

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Speaker 10: week cease fire, hopefully that gives us and gives us

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Speaker 10: enough space to work out how to have a conversation

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Speaker 10: and how to talk about a pathway to stop the

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Speaker 10: fighting and certainly to stop it from escalating into that

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Speaker 10: all out war that people are very worried about. So

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Speaker 10: the starting point seems to be just agreed to halt

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Speaker 10: the rocket fire that's been going on, strike has been

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Speaker 10: going on, and then allow people to sit down somewhere

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Speaker 10: at the table. And we do know from our interview

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Speaker 10: with the Lebanese Economy minister this morning that he says

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Speaker 10: it Hesblow is at least open to the idea, but

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Speaker 10: there's no word from Israel so far, and without a

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Speaker 10: lot of details, it's a bit hard to know what

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Speaker 10: the reception is going to be. But that just shows

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Speaker 10: just how complicated it is. You can't really go in

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Speaker 10: with the proposal for how to stop this fighting. All

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Speaker 10: you can do so far is say let's just stop

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Speaker 10: fighting and talk and see if we can find a

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Speaker 10: way through.

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Speaker 3: Yeah.

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Speaker 1: So, how much hope is there that this diverts the

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Speaker 1: possibility of a ground invasion by Israel.

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Speaker 10: Well, it's very clear that Israel wants possibly, you know,

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Speaker 10: very much, to avoid a ground invasion if they can.

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Speaker 10: You know, history shows us what that can lead to.

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Speaker 10: But they have an overarching goal, which is to degrade

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Speaker 10: hes Balah and to push Hesbelah back from the border,

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Speaker 10: and they're doing that mostly as we can see right now,

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Speaker 10: through rocket attacks, missile strikes, targeted strikes on Hesbela officials

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Speaker 10: and so on. So, if that goal is still there,

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Speaker 10: and it's very clear that they're determined on that front,

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Speaker 10: at some point, do they have to send troops in

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Speaker 10: to achieve it? Very much. They don't want to, that's clear.

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Speaker 10: But they are moving significant numbers of troops to the

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Speaker 10: northern areas of Israel. They're calling up reservers' troops again

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Speaker 10: and sending them in. So certainly they're massing troops in

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Speaker 10: the area just in case they need to use them.

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Speaker 1: Okay, just lastly, what might we hear today? What might

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Speaker 1: be the developments that the US has some hopes.

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Speaker 10: Well, it's interesting because of course Benjamin Nahu is going

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Speaker 10: to the US or in the US for other UN

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Speaker 10: General Assembly meetings, so interesting to see what happens on

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Speaker 10: the sidelines of that, and quite possibly he doesn't want

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Speaker 10: anything to be escalating while he's out of the country.

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Speaker 10: But we haven't had any kind of response from Israel

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Speaker 10: so far to this proposal for a cease far. We're

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Speaker 10: hearing slightly positive noises from Hesbellah, but nothing from Israel.

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Speaker 10: And really it will be to a large extent up

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Speaker 10: to Israel to decide, because most of the rocket attacks

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Speaker 10: of late have come from Israel, so it's really going

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Speaker 10: to be interesting to see whether they're amenable and certainly

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Speaker 10: what has to say today we was.

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Speaker 5: In the US.

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