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Speaker 1: Good morning. It's Monday, the twentieth of November here in London.

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Speaker 1: This is the Bloomberg Daybreak you at podcast. I'm Caroline

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Speaker 1: Hepke and.

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Speaker 2: I'm Stephen Carroll. Coming up today. Open aiy's board rejects

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Speaker 2: the wishes of major shareholders and hires a new CEO

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Speaker 2: to replace Sam Altman.

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Speaker 1: Expectations grow for the autumn statement and tax cuts from

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Speaker 1: the UK Chancellor.

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Speaker 2: And Elon Musk doubles down. The owner of x uses

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Speaker 2: his social media platform to defend himself from allegations of

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Speaker 2: anti Semitism.

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Speaker 1: Let's start with a round up of our top stories.

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Speaker 2: Chaoso threatening to engulf the firm behind some of the

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Speaker 2: most exciting developments in artificial intelligence. Open AI's founder Sam

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Speaker 2: Altman was ousted as the CEO on Friday after a

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Speaker 2: power struggle with the board over the direction of the

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Speaker 2: chat GPT owner Bloomberg understands this morning the board has

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Speaker 2: hired Emma Cheer, formerly of Twitch, to replace him. Bloomberg's

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Speaker 2: AI and tech reporter Rachel Metz has more.

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Speaker 3: Open ai leadership has put out memos internally at the

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Speaker 3: company saying that the board hasn't said that there was

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Speaker 3: any quote, malfeasance or anything like that, so it's not

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Speaker 3: totally clear what the board was initially even accusing him

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Speaker 3: of doing when it got rid of him.

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Speaker 2: Rachel Matt says the decision is a stinging rebuke to

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Speaker 2: major investors such as Microsoft and Thrive Capital, who wanted

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Speaker 2: Altman back and the board to step down now Here.

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Speaker 1: In the UK, Jeremy Hunt is expected to reveal plans

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Speaker 1: to cut Britain's tax burden. This week's autumn statement a

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Speaker 1: pivotal moment for the struggling Tories. The Chancellor's tax and

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Speaker 1: spent plans will be announced on Wednesday, and speculation is

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Speaker 1: growing that he may promise a future income tax cut.

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Speaker 1: Speaking on Sunday, Hunt said that any reduction must be

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Speaker 1: done in a responsible way.

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Speaker 4: We believe lower taxes are essential for a high growth economy.

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Speaker 4: We do want to bring down the tax band, but

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Speaker 4: we will only do so responsibly. The one thing we

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Speaker 4: won't do is any kind of tax cut that fuels inflation.

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Speaker 4: We've done all this hard work. We're not going to

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Speaker 4: throw that away.

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Speaker 1: Jeremy Hunt has also been considering a potential cut to

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Speaker 1: inheritance tax, though the move has already drawn criticism from

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Speaker 1: some Tory MPs and has been a source of division

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Speaker 1: in the Prime Minister's top team.

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Speaker 2: The White House says a deal to free some of

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Speaker 2: the two hundred and thirty nine hostages held in Gaza

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Speaker 2: is closer than ever it's understood. The agreement would involve

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Speaker 2: the release of dozens of captives and an extended pause

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Speaker 2: and the fighting. America's Deputy National Security Advisor, John Feiner

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Speaker 2: says outstanding areas of disagreement between Israel and Hamas have

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Speaker 2: been narrowed.

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Speaker 5: I believe we are closer than we have been in

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Speaker 5: quite some time, maybe closer than we have been since

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Speaker 5: the beginning of this process to getting this deal done.

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Speaker 5: And we are following this minute by minute, hour by hour,

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Speaker 5: and have been for a number of weeks up to

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Speaker 5: and including the President, for whom this is a major priority.

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Speaker 2: Speaking to NBC's Meet the Press program, Finer went on

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Speaker 2: to say that a pause would also allow more humanitarian

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Speaker 2: aid to reach Gaza. The hamasr On Health Ministry there

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Speaker 2: says the death toll has now surpassed thirteen thousand. The

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Speaker 2: negotiations come as Israel released footage of what it says

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Speaker 2: as a fortified tunnel under the Shifa Hospital complex. Pressure

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Speaker 2: has been mounting in recent days to justify the raid

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Speaker 2: on the medical center and claims of a hamass base

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Speaker 2: beneath it.

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Speaker 1: Elon Musk says that reports labeling him as anti Semitic

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Speaker 1: couldn't be quote further from the truth. The tech billionaire

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Speaker 1: is facing an advertiser backlash after endorsing antisemitic content in

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Speaker 1: a post on his social media platform. Near Impact Capital

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Speaker 1: founder Kristin Hull is an activist investor in Tesla. She

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Speaker 1: says the card Gant's board should step in now.

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Speaker 6: Elon Musk has been erradick. He's been att all with

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Speaker 6: this speech. We never actually know what he's trying to do.

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Speaker 6: And while he is saying he's promoting free speech, hateful

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Speaker 6: speech and hates speech has no place on X and

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Speaker 6: it certainly doesn't have any place coming from a major

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Speaker 6: CEO in our nation.

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Speaker 1: Christin Hull holds a small amount of shares in Mosque's

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Speaker 1: solely publicly traded venture, but large advertisers like Walt Disney

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Speaker 1: and Apple are among those distancing themselves from X.

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Speaker 2: Libertarian outsider Havimla will become Argentina's new president he's promising

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Speaker 2: a radical shakeup to fix decades of policy mismanagement. Speaking

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Speaker 2: to crowds in Buenos Aires, the president elects stress the

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Speaker 2: need for immediate action.

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Speaker 7: The situation in Argentina is critical. The changes that this

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Speaker 7: country needs are drastic. There's no room for gradual measure

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Speaker 7: and there's no way to say it long lived. Freedom heavy.

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Speaker 2: MLA also highlighted the Argentina's critical economic condition in an

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Speaker 2: address to supporters. Investors are welcoming the news. Overseas bonds

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Speaker 2: look poised to rise as traders anticipated change in fortunes

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Speaker 2: for the country after experiencing five recessions in the last decade.

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Speaker 2: It's expected that the Argentinean paeser will weaken, reflecting Malay's

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Speaker 2: plan to replace the currency with the dollar.

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Speaker 1: And finally, London's he For airport is facing flight delays

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Speaker 1: due to staff absences and bad weather, including high winds.

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Speaker 1: NAT's the UK's Aerospace Airspace Manager rather said in a

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Speaker 1: statement that temporary restrictions were in place at Heathrow, adding

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Speaker 1: that it's working with the airport to reduce disruption. The

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Speaker 1: British Airways website shows dozens of flights held up by

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Speaker 1: up to two hours as the airline adjust some of

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Speaker 1: its short haul schedule. The news comes off to Gatwick

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Speaker 1: said late in September that it had capped the number

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Speaker 1: of daily flights until the first of October due to

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Speaker 1: unforeseen staff shortages.

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Speaker 2: Those are your top stories on the markets. The MSCIASA

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Speaker 2: Pacific Index is trading half a percent higher this morning.

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Speaker 2: Eurostos fifty features are flat at the moment. The ten

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Speaker 2: year Treasury yields two basis points higher at four point

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Speaker 2: four to five percent.

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Speaker 1: Now in a moment, we're going to be talking about

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Speaker 1: what we expect to see from the Chancellor in this

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Speaker 1: week's autumn statement from Jeremy Hunt. We'll also bring you

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Speaker 1: the latest details on the extraordinary story of open Ai,

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Speaker 1: the company that helped develop chat GPT is engulfed in

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Speaker 1: a power struggle right now, including up until this morning,

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Speaker 1: so we'll have more on that in just a moment.

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Speaker 1: But also this Stephen, tis the season to know the

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Speaker 1: size of the bonus that you might get. In the

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Speaker 1: financial industry, Paul ja Davies has a long read on

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Speaker 1: this this morning, and he delves into all the various

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Speaker 1: types of financial firms. His answer is essentially not that

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Speaker 1: big global M and A activity has slumped this year.

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Speaker 1: Deals of tumble, so bonuses they're expected to down something

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Speaker 1: like twenty percent according to Johnson Associates. And then he

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Speaker 1: looks at all the different types of trading also not

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Speaker 1: that great for bonus season this year.

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Speaker 2: Yeah, it's true when you dig into the details of

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Speaker 2: where the activity is gone in banks this year is

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Speaker 2: perhaps not surprising to many people. And I'm sure where

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Speaker 2: people might have been very helpful that perhaps their bonuses

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Speaker 2: might be larger than they expect. The data seems to

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Speaker 2: have turned against them anyway, But all crunched in Paul

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Speaker 2: Davies's piece this morning, so well worth at a reed.

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Speaker 1: Okay, let's send our attention then and get the details

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Speaker 1: on the leadership changes at open Ai, the company that

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Speaker 1: helped to develop chat GPT. The board which ousted the

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Speaker 1: CEO and president on Friday of last week, are said

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Speaker 1: to have hired Emmitt Scheer as their new chief. That

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Speaker 1: comes after Bloomberg reported that the interim CEO, Mira Marati,

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Speaker 1: was planning to rehire former chief Sam Altman and former

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Speaker 1: president Greg Brockman. Bloomberg TV ANDKA Tom McKenzie has been

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Speaker 1: across this story and joins us, now, wow, this is

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Speaker 1: moving quickly. What have we actually heard about what the

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Speaker 1: board is doing just this morning about who they're picking

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Speaker 1: as see.

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Speaker 8: Yeah, the story is developing at a very rapid clip

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Speaker 8: and our team on the ground in California, San Francisco

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Speaker 8: reporting this out for us. So, the latest line coming

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Speaker 8: through in the last thirty minutes or so is that

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Speaker 8: Emmett Sheer is going to be taking over as the

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Speaker 8: CEO of Open AI. We know that the board had

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Speaker 8: reached out to a number of potential executives to take

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Speaker 8: over as the CEO over the weekend. Now we have

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Speaker 8: it confirmed from our reporting that it's going to be

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Speaker 8: Emmett Sheeer, formerly the CEO of the video streaming company

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Speaker 8: Twitch up until about March of this year, and prior

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Speaker 8: to that, a co founder of a video platform called

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Speaker 8: just in TV, so his background very much within the

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Speaker 8: video world. He's also though a part time partner at

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Speaker 8: y Combinator, the eventual capital firm, which interestingly Sam Oltman

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Speaker 8: was the CEO of prior to open AI. That's what

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Speaker 8: we know about Emmett Sheer, the new appointment.

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Speaker 2: And this though as there are two camps as the

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Speaker 2: board on one side, pointing amates Sheer, but then there

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Speaker 2: we was executives and investors pushing to try and bring

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Speaker 2: Sam Oltman back.

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Speaker 8: Yeah, and the tension has been very clear indeed between

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Speaker 8: the board, which let's not forget, was set up when

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Speaker 8: open Ai was squarely focused on being a nonprofit. So

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Speaker 8: there's a legacy there in terms of the board's constitution

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Speaker 8: around a project that has evolved so quickly. But the

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Speaker 8: tensions have come to the fore clearly. We know that

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Speaker 8: not only many researchers and key members of the team

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Speaker 8: at OpenAI, but as you say, also key investors and Microsoft.

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Speaker 8: Don't forget the biggest investor sat In Thedella, who was

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Speaker 8: taken by surprise by this announcement that Sam Oltman was

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Speaker 8: being forced out on Friday. It was a shock to

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Speaker 8: hear him in the team at Microsoft. We know they

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Speaker 8: are lobbyings for Sam Altman to come back, and up

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Speaker 8: until this line crossed about thirty minutes ago, the latest

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Speaker 8: news was that they were in the middle of this

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Speaker 8: negotiation Sam Moltman and the board to get Sam back

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Speaker 8: as the CEO at least in some kind of leadership.

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Speaker 8: In fact, he was in the offices of open Ai

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Speaker 8: over the weekend. Yeah.

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Speaker 1: And fundamentally though, as this story has sort of exploded

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Speaker 1: on Friday and over the weekend, what do we think

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Speaker 1: is behind the disagreement? Why do we think that you

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Speaker 1: know that sam Oltman was was ousted from the business.

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Speaker 1: I mean, that's the big question mark about it.

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Speaker 8: It seems to be a combination of factors. So I'll

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Speaker 8: take you back to what I was touching on there,

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Speaker 8: which was the open Ai was originally set up as

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Speaker 8: a nonprofit to work on AI that would be and

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Speaker 8: have safety at its core. It had a commercial operation,

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Speaker 8: as Samon Oltman has said in the past, kind of

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Speaker 8: cobbled on rather than all being commercial with a research

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Speaker 8: lab on one side, it was all about the research lab.

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Speaker 8: It's all about being a nonprofit. That has evolved and

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Speaker 8: sam Oltman has driven the commercialization of their products, notably

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Speaker 8: of course, the launch of chatchebt in November of last year,

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Speaker 8: and he's continued to drive the evelotion of those projects

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Speaker 8: and get them out to customers. He claims that about

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Speaker 8: ninety percent of the Fortune five hundred companies have access

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Speaker 8: now in the customers. That has caused tensions within the

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Speaker 8: original buildout of open AI, including the chief scientists by

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Speaker 8: the way, Iliasuskava, who they poached from Google, who's been

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Speaker 8: very concerned about risks. But also again the legacy board

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Speaker 8: bored on for this nonprofit with the aim of being

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Speaker 8: risk focused. The concern amongst many board members as they've

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Speaker 8: gone too quickly, too fast, and they aren't putting the

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Speaker 8: checks and balances in place. The other component as well

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Speaker 8: that we've been reporting on is that Sam Altman has

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Speaker 8: been doing trips overseas trying to raise capital for additional

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Speaker 8: and new businesses around for example AI chips and also

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Speaker 8: AI hardware, so that has also been attention apparently between

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Speaker 8: him and the board.

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Speaker 2: Okay, Tom McKenzie, Tvanco, thank you very much for joining

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Speaker 2: us with the latest en that story this morning, or

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Speaker 2: continue of course to follow all the developments around open AIS.

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Speaker 2: Who were saying to Time they are quite a fast

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Speaker 2: moving story. Yeah.

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Speaker 1: Absolutely. Meanwhile, Hoy in the UK, it's a very big

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Speaker 1: week for the government. The autumn Statement on Wednesday. The

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Speaker 1: chances of Jeremy Hunt expect to reveal plans to cut

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Speaker 1: Britain's tax burden without adding to inflation. That would be

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Speaker 1: the aim our UK correspondent Lizzie Burden is back and

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Speaker 1: joins us in studio. Good morning. Set the scene for us,

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Speaker 1: then what do you think is going to happen on Wednesday?

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Speaker 1: The messaging over the weekend, there was plenty of it.

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Speaker 1: It was a very difficult week last week for the Tories.

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Speaker 9: Yeah, nightmare week for the Prime minister. You have the

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Speaker 9: party divided again over small boats and the Home Secretary

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Speaker 9: Sweller Bratherman's departure. And of course this autumn statement really

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Speaker 9: is crucial because it's one of the few remaining set

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Speaker 9: pieces the opportunities to narrow the gap with labor. They've

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Speaker 9: got a twenty point lead and the election's got to

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Speaker 9: be called by January twenty twenty five. So, as you say,

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Speaker 9: we had the Chancellor, Jeremy Hunt on the airwaves yesterday

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Speaker 9: laying the groundwork for Wednesday. He wants to take credit

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Speaker 9: for stabilizing the economy. You know, the government's already met

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Speaker 9: its self set target of halving inflation by the end

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Speaker 9: of the year, even if it's not back to the

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Speaker 9: Bank of England's two percent target, even though the work

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Speaker 9: was really done by thread Needle Street. But moving on,

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Speaker 9: he's got not a lot of room to maneuver fiscally,

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Speaker 9: and he's going to want to avoid criticism that the

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Speaker 9: Sunak administration is simply managing Britain's decline so as was ever.

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Speaker 9: Thus you've got back bench conservatives clamoring for tax cuts,

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Speaker 9: but Jeremy Hunt has already said that's not going to

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Speaker 9: happen overnight, but he hasn't ruled anything out. The trouble

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Speaker 9: is the government really needs to shift gears at this point.

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Speaker 9: Party conference, Caroline, you and I were there didn't really

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Speaker 9: move the dial, nor did the King's speech and so

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Speaker 9: Hunt's got to get a lot of political bang out

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Speaker 9: of not a lot of fiscal book here.

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Speaker 2: Okay, well let's talk specifics then, Lizzie. What sort of

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Speaker 2: things should we be expecting the Chancellor to Annette?

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Speaker 9: I mean, if you listen to the Chancellor yesterday, you'd

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Speaker 9: think that every tax under the sun was going to

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Speaker 9: be cut, and if you read the papers as well.

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Speaker 9: But that's the usual sort of speculation before a fiscal event.

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Speaker 9: We know that the Prime Minister and the Chancellor have

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Speaker 9: been considering slashing inheritance tax, but optically that would be

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Speaker 9: so difficult in a cost of living crisis. Given that

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Speaker 9: the Chancellor's also expected to ad just welfare to try

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Speaker 9: to reduce economic inactivity and save a bit of money.

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Speaker 9: So there's speculation that he might pull a bigger lever

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Speaker 9: like income tax or national insurance. But then the Chancellor

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Speaker 9: seemed to cool on that yesterday and it would be expensive.

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Speaker 9: He's warned it could stoke inflation. So the compromise would

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Speaker 9: be to pledge to cut income tax somewhere down the

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Speaker 9: line that straight out of the Rishie Sunac playbook. Or

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Speaker 9: they could cut stamp duty, the property transaction tax that's

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Speaker 9: scene as being a less inflationary move. I'm going to

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Speaker 9: be listening for clues from the Prime Minister this morning.

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Speaker 9: He's making a speech in North London and the Chancellor

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Speaker 9: is giving a fireside chat to the CBI's countdown to

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Speaker 9: the election event. Later today, I'm hosting a panel. He's

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Speaker 9: going to be talking to the Director General Ray Newton Smith,

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Speaker 9: and he's he's going to be joining us right here

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Speaker 9: on Bloomberg Radio for an interview before that conference gets

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Speaker 9: going today. Yeah.

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Speaker 1: Absolutely, yeah, it's going to be a great morning in

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Speaker 1: terms of the next steps though on the Rwanda deportation policies,

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Speaker 1: does go back to what happened last week, the court

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Speaker 1: decision that went against the government. What happens with this

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Speaker 1: migration policy.

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Speaker 9: Now, yeah, it really was Rishi Sunac's worst week as

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Speaker 9: Prime minister. Increasingly he's on thin ice with his backbench,

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Speaker 9: so he's expected to deploy Whitehall officials to Rwanda to

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Speaker 9: try and assist with the casework. This is according to

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Speaker 9: the Telegraph. He's expected to publish a new Rwanda treaty

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Speaker 9: early this week. And this is of course that you

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Speaker 9: say after the Supreme Court ruled that deporting asylum seekers

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Speaker 9: to Rwanda was unlawful because it risked people being sent

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Speaker 9: back to their home countries. The other major event on

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Speaker 9: the docket in the UK today is the government's Food

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Speaker 9: Security Summit that's hosted with the Bill and Melinda Gates Foundation.

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Speaker 9: It's the idea to address hunger and nutrition globally, so

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Speaker 9: you're going to have retur representatives from governments, from international

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Speaker 9: aid groups, the science community and the private sector all

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Speaker 9: expected to attend. Again the Prime Minister trying to move

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Speaker 9: the spotlight away from the boat's policy, which really has

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Speaker 9: been a thorn in its side.

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Speaker 1: I'm Caroline Hepka and.

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