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Speaker 1: Good morning.

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Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 2: stories we're following today.

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Speaker 3: We begin with a guilty verdict for Sam bankman freed.

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Speaker 3: It took a jury less than five hours to convict

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Speaker 3: the FTX co founder of seven counts of fraud and conspiracy.

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Speaker 3: Bloomberg's June Grosso begins our team coverage.

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Speaker 4: It's not a surprise because the evidence against him was overwhelming.

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Speaker 5: And think, what did it is? Sam Bankminfried took the

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Speaker 5: stand in his own defense. And when a defendant takes

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Speaker 5: the stand that way, the whole thing in the jury's

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Speaker 5: mind becomes a credibility game. How credible do they find him?

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Speaker 3: Bloomberg's June Grosso says, Sam bankman Fried faces as much

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Speaker 3: as twenty years in prison on each of the most

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Speaker 3: serious charges. He'll be sentenced in March.

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Speaker 2: Well, Nathan Bloomberg, The legal reporter Ava Benny Morrison, was

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Speaker 2: in the courtroom during the verdict, and she continues our

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Speaker 2: team coverage.

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Speaker 6: Dave was pretty emotionless. He was as to stand up

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Speaker 6: by the judge. When the jury delivered its verdict. He

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Speaker 6: faced the jury box, he held his hands in front

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Speaker 6: of him and it looked like he was tearing down

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Speaker 6: at the floor as the jury. As the fourth person

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Speaker 6: to the jury confirmed guilty to each of the seven charges.

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Speaker 6: He then sat back down. When the jury walked out

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Speaker 6: of the room, he was whispering with his lawyers. He

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Speaker 6: was nodding a lot. While he wasn't very emotional. His

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Speaker 6: parents were. They were holding each other. His dad doubled

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Speaker 6: over at one point.

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Speaker 2: Bloomberg Legal reporter Ava Bennie Morrison reports Bankman's lawyer is

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Speaker 2: considering an appeal.

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Speaker 3: May Karen Bloomberg. Business Week investigative reporter Zeke Fox wrote

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Speaker 3: a book on ftx's Crypto roller Coaster, and he says

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Speaker 3: Bankman freed struggled under cross examination.

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Speaker 7: When his own lawyer was questioning him, he had a

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Speaker 7: lot to say, but when the prosecution had there turned

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Speaker 7: a cross examine, he suddenly didn't remember anything and in

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Speaker 7: one moment that was dramatic, I mean, especially for me.

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Speaker 7: The prosecutor asked her, as she asked him about the statement,

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Speaker 7: there was more leeway, and he said, I don't remember

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Speaker 7: saying anything like that. She whipped out a copy of

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Speaker 7: my book, number Go Up and walked it over to

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Speaker 7: him like a hard copy and was like turn to

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Speaker 7: page two twenty four.

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Speaker 3: In Bloomberg Business Week, Zeek Fox ads the conviction is

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Speaker 3: the first in a wave of legal action against crypto companies.

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Speaker 2: Nathan now to the other major trial happening in New York,

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Speaker 2: Donald Trump's two hundred and fifty million dollars civil fraud case.

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Speaker 2: The former president's two oldest sons took turns on the

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Speaker 2: witness stand, denying any role in preparing their company's financial records. Afterward,

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Speaker 2: Donald Trump Junior addressed reporters.

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Speaker 8: Before even having a day in court, I'm apparently guilty

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Speaker 8: uh a fraud for relying on my accountants to do

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Speaker 8: wait for it, accounting.

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Speaker 2: Donald Trump Junior's brother is set to continue testifying today.

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Speaker 2: Their sister, Evonka, will take this stand next week. She

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Speaker 2: lost an appeal to delay her testimony.

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Speaker 3: Well, Karen, we now turn to the war in the

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Speaker 3: Middle East. Secretary of State Anthony Blinken is back in

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Speaker 3: Tel Aviv. We're determined that this conflict not spread, and

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Speaker 3: we'll be talking to both the Israeli government partners in

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Speaker 3: the region about what all of us are doing to.

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Speaker 9: Prevent that from happening.

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Speaker 3: When Secretary of State b Lincoln's arrival comes as ground

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Speaker 3: operations continue in Gaza. The Hamas run Health Ministry says

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Speaker 3: more than nine thousand Palestinians have died in the fighting.

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Speaker 3: Israel says seventeen of its soldiers have been killed.

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Speaker 2: Well, Nathan, the House has passed the Aid for Israel bill,

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Speaker 2: but Bloomberg's ad Baxter reports and may have a troubled future.

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Speaker 9: This is a victory for House Speaker Mike Johnson, but

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Speaker 9: it looks as if it is dead to become law.

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Speaker 9: Senate majority leader Chuck Schumer has been saying taking funding

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Speaker 9: from IRS enforcement is a bad idea, and President Biden

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Speaker 9: is out saying if it were to hit his desk,

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Speaker 9: he would not sign it. House Speaker Johnson says it

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Speaker 9: will get done.

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Speaker 7: There is absolutely no equivocation here.

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Speaker 2: We have to stay with.

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Speaker 9: Israel, and Republican Congressman Tom Cole says there are different

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Speaker 9: paths to get the aid. We have a lot of

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Speaker 9: unspent money. We ought to use that toward a more

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Speaker 9: important purpose and that's his real So the issue is

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Speaker 9: far from settled at Baxter Bloomberg Radio.

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Speaker 3: Okay, and thank you. Turning the market. Shares of Apple

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Speaker 3: are down more than three percent. The world's most valuable

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Speaker 3: company reported its fourth straight sales decline and its warning

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Speaker 3: holiday revenue will be about the same as last year.

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Speaker 3: Angelo Zeno, as senior equity analyst, it's CFRAA research.

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Speaker 10: It's not the most favorable landscape out there for PCs,

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Speaker 10: even though the broader PC landscape appears to have found

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Speaker 10: some sort of putting for the time being. But at

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Speaker 10: the end of the day, the consumer landscape is still

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Speaker 10: very challenging in.

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Speaker 3: Nature CFAs angelo Zino says. The results also suggest apples

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Speaker 3: facing a deceleration in China.

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Speaker 2: Well Nathan O their stocks on the move this morning.

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Speaker 2: Shares of DraftKings up seven percent. The sports betting operator

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Speaker 2: reported sales and player numbers that beat analyst expectations, Block

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Speaker 2: shares surging more than a ten percent. The Payments Giant

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Speaker 2: run by Jack Dorsey, again boosting its profit forecast for

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Speaker 2: the year, and shares a Booking dropping as much as

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Speaker 2: seven percent in light trading. The company formerly known as

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Speaker 2: Price Lines as travel demand had been diminished by the

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Speaker 2: Israel Hamas war.

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Speaker 3: On the economic front, karen a busy week concludes with

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Speaker 3: the October Jobs report, a preview of that now from

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Speaker 3: Bloomberg's Michael McKee.

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Speaker 11: FED chair j Powell says a tight labor market could

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Speaker 11: lead to another rate move, which means markets will parse

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Speaker 11: the October jobs report trying to determine what it signals.

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Speaker 11: Is hiring still much stronger than what's needed to absorb

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Speaker 11: an increasing labor force. Have higher interest rates led companies

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Speaker 11: to pull back on hiring or even start letting people go.

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Speaker 11: Our companies still paying up to attract workers, While the

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Speaker 11: Fed we'll also see the November payrolls report before its

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Speaker 11: next meeting. Powell says it will take several months of

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Speaker 11: data to make any decisions. Michael McKee, Bloomberg Radio.

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Speaker 2: All right, Nathan, thank you. It is time now for

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Speaker 2: a look at some of the other stories making news

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Speaker 2: around the world, and for that we're joined by Bloomberg's

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Speaker 2: John Tucker, John, good morning.

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Speaker 12: And Karen. Something maybe rotten in the Big Apple. The

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Speaker 12: mayor's fundraising campaign is under investigation. Let's get more on

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Speaker 12: this report from Bloomberg's Michael Barr.

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Speaker 13: Mayor Adams ditched a White House meeting on the migrant

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Speaker 13: crisis and flew back to the city. The mayor explaining

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Speaker 13: his abrupt return.

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Speaker 14: But you probably heard the reports involved in one of

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Speaker 14: my campaign staffers.

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Speaker 13: The staffer is lead fundraiser, twenty five year old Brianna Suggs,

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Speaker 13: whose Brooklyn home was raided by the FBI. Along with

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Speaker 13: the officers of a New York construction firm called KSK,

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Speaker 13: it made fourteen thousand dollars in campaign contributions. The investigation

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Speaker 13: is looking into whether the company, along with Turkish nationals,

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Speaker 13: made in proper donations in New York. Michael Barr Bloomberg.

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Speaker 12: Radio Adams was supposed to be with the mayors of

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Speaker 12: Chicago and Denver. It asked Congress to approve President Biden's

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Speaker 12: request at one point four billion dollars to help the

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Speaker 12: cities and states in the migrant crisis. Denver Mayor Mike Johnston,

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Speaker 12: we're both of.

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Speaker 4: What wey've done.

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Speaker 1: It's critical for us that this package passes over the

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Speaker 1: next several weeks to get funding to cities, otherwise we'll

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Speaker 1: have catastrophic impacts.

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Speaker 12: The Democratic Mayor's trying to put pressure on the blinded

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Speaker 12: administration to address the humanitarian crisis caused by record crossings

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Speaker 12: at the southern border. The Senate had voted ninety five

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Speaker 12: to one to confirm Admiral Linda Franchetti to be the

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Speaker 12: next Chief of Naval Operations, making her the first woman

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Speaker 12: to be a US military service chief. Set of Majority

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Speaker 12: Leader Chuck Schumer and.

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Speaker 15: Admiral Fanchette is an exceptional leader with a distinguished career

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Speaker 15: serving our nation. I'm confident she has the experience, the skills,

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Speaker 15: and the vision to succeed as the US Navy's top

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Speaker 15: naval as the US Navy's top officer.

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Speaker 12: Franchetti's confirmation comes amid a temporary break from a blockade

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Speaker 12: by Senator Tommy Tubberville stalling hundreds of military promotions. Riding

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Speaker 12: high on historic contract wins against Detroit's automakers, UAWT President

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Speaker 12: Sean Fain he is confident he can now take on

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Speaker 12: Tesla and it's anti union chief Elon Musk. In an

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Speaker 12: interview with Bloomberg yesterday, Fan said we can beat anybody

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Speaker 12: global news twenty four hours a day and whenever you

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Speaker 12: want it with Bloomberg News. Now, I'm John Tucker, and

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Speaker 12: this is Bloomberg.

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Speaker 2: Karen, all right, John, thanks, so we bring you news

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Speaker 2: throughout the day here on Bloomberg Radio. But now you

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Speaker 2: can get the latest news on demand whenever you want it.

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Speaker 2: Subscribe to Bloomberg News Now to get the latest headlines

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Speaker 2: at the click of a button. Get informed on your schedule.

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Speaker 2: You can listen and subscribe to Bloomberg News Now on

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Speaker 2: the Bloomberg Business app, Bloomberg dot com plus Apple, Spotify,

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Speaker 2: and anywhere else you get your podcasts. Time now for

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Speaker 2: the Bloomberg Sports Update. Here's John stash Hour John Karen Weign.

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Speaker 14: I'm in the NFL Underway with an AFC game in Pittsburgh.

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Speaker 14: The Steelers and Titans were tied at ten, then at thirteen.

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Speaker 13: Pittsburgh trailed in the fourth quarter. Ticket in the shotgun

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Speaker 13: gets the snap looks right. Johnson White open tutop Pittsburgh.

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Speaker 13: The Steelers bunched ninety two yards to take Tully. That's

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Speaker 13: the day Johnson's first touchdown and won a couple season tests.

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Speaker 14: Twenty Games TV had the calls. The Steelers beat the

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Speaker 14: Titans twenty to sixteen. Pittsburgh's five and three Tennessee is

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Speaker 14: three and five In Victor Weinberana's fifth NBA game, the

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Speaker 14: Spurs rookie sensations scored thirty eight points. He had ten rebounds.

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Speaker 14: Some highlight reel baskets as the San Antonio Spurs blew

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Speaker 14: a twenty seven point lead but still beat Phoenix won

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Speaker 14: thirty two to one twenty one. Philadelphia's three and one

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Speaker 14: won by fifteen over Toronto. Joel Mbi scored twenty eight.

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Speaker 14: The Pelicans are four to one. They played without Zion

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Speaker 14: Williams from CJ. McCollums scored thirty three and win over Detroit.

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Speaker 14: Orlando won by two at Utah Paalo Bankero scored thirty.

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Speaker 14: The games tonight of the NBA marked the beginning of

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Speaker 14: the NBA's in season tournament. The Bruins are nine to

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Speaker 14: zhoin one. They beat Toronto three two in a shootout.

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Speaker 14: Nelson Cruz announced his retirement at age forty three. Played

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Speaker 14: nineteen seasons. There eight different teams at four hundred and

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Speaker 14: sixty four home runs as expected World Series ratings, the

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Speaker 14: lowest ever one hundred and thirty baseball players will be

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Speaker 14: free agents. Heading the list show AO Time John Stanshaur

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Speaker 14: Bloomberg sports.

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Speaker 13: From coast to coast, from New York to San Francisco,

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Speaker 13: Boston to Washington, DC, nationwide on Syrias Exam. The Bloomberg

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Speaker 13: Business app in Bloomberg dot Com. This is Bloomberg Daybreak.

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Speaker 9: Good morning.

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Speaker 3: I'm Nathan Hager. Guilty on all counts. After a month

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Speaker 3: long trial, Sam Bankman Freed is convicted in one of

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Speaker 3: the biggest cases of financial fraud in decades over the

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Speaker 3: collapse of his FTX crypto empire. For more reaction to

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Speaker 3: this outcome, we are joined now by Bloomberg Law host

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Speaker 3: June Grosso. It's good to have you back with us

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Speaker 3: this morning. Of course, this came after more than fifteen

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Speaker 3: days of testimony that this jury heard. In the end,

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Speaker 3: though it did take only about five hours for those

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Speaker 3: jurors to come back with a verdict. Your thoughts, Yeah,

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Speaker 3: it was a.

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Speaker 4: Very quick verdict. I think that the evidence of this

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Speaker 4: case was overwhelming. The prosecution had not only documents that

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Speaker 4: they could present, but they also had three insiders, three

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Speaker 4: witnesses who were close friends of Bankment Freed, one a

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Speaker 4: former girlfriend of his, who were in on the process,

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Speaker 4: in on what happened, and they testified, and their testimony

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Speaker 4: was very you know, conclusive, and the cross examinations really

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Speaker 4: didn't expose many holds in their testimony. And you also

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Speaker 4: had the fact that Sam bankmin Freed took the stand,

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Speaker 4: and when a defendant takes the stand, the focus for

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Speaker 4: the jury then becomes the credibility of that defendant. And

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Speaker 4: while he did pretty well on direct examination, on cross examination,

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Speaker 4: the cross exit nomination was just withering and he said

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Speaker 4: I don't know, or words to that effect more than

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Speaker 4: a hundred times. So I think that in this case,

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Speaker 4: he's taking the stand, which was a risky move. Everyone

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Speaker 4: knows that it's a risky move for a defendant to

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Speaker 4: take the stand, and it worked against him.

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Speaker 3: Here, was that the biggest mistake that Sam Bankman Freed

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Speaker 3: made to take the stand? Or is there something more

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Speaker 3: that he could have done to try to rebut that

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Speaker 3: testimony from as you say, what used to be his

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Speaker 3: closest friends, his inner circle.

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Speaker 4: Well, you know, it's hard to say. I don't want

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Speaker 4: to characterize it as a mistake really because I don't

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Speaker 4: know that he had any other choice. The evidence against him,

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Speaker 4: as I said, was building, building, building. He had those

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Speaker 4: those witnesses who turned against him, and really, what else

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Speaker 4: could he have done but take the stand. He really

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Speaker 4: had no other recourse. It was sort of forced on

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Speaker 4: him as the trial was going on, the question will

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Speaker 4: he take the stand or not. And the analysis was, well,

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Speaker 4: he has the kind of personality to want to take

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Speaker 4: the stand. I mean, look at all the times he's

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Speaker 4: talked in the media, but everyone knew that on cross

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Speaker 4: examination he was going to be confronted with not only

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Speaker 4: the testimony of the three people who were closest to

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Speaker 4: him at FTX and Alima Research who turned on him,

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Speaker 4: but also all the statements that he made, all the

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Speaker 4: times he talked to the media about FTX after the bankruptcy.

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Speaker 4: So but what else could he do? It was it

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Speaker 4: was a hail Mary pass and.

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Speaker 6: He took it.

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Speaker 4: But you know, the choice was really there wasn't really

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Speaker 4: wasn't much choice because it was so overwhelming at that

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Speaker 4: point that you know, he had to take the chance.

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Speaker 3: And there was, as you mentioned, so much overwhelming testimony

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Speaker 3: against him before the standard. Even before that testimony, I mean,

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Speaker 3: he lost a number of pre trial motions that kept

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Speaker 3: him from calling expert witnesses. And of course there was

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Speaker 3: that moment even before he was allowed to testify before

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Speaker 3: a jury, where he got on the stand in front

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Speaker 3: of the judge to argue for being allowed to testify

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Speaker 3: about advice from his lawyers. So I mean, he had

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Speaker 3: a number of hands tied behind his back, didn't he.

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Speaker 4: Yeah, I think you know so many of the motions,

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Speaker 4: every big one that I can think of. The judge

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Speaker 4: ruled against him, and in particular, he was on the stand,

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Speaker 4: as you mentioned, about three hours testifying before the judge,

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Speaker 4: so the judge could decide whether or not he could

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Speaker 4: get use an advice of council defense and that was

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Speaker 4: really critical to his defense his lawyers, and he wanted

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Speaker 4: to say that what he did he did because he

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Speaker 4: was relying on the advice of his attorneys, and the

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Speaker 4: judge said that he could not do that. I mean,

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Speaker 4: the judge even ruled before trial that they couldn't use that,

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Speaker 4: they couldn't talk about that in their opening statements to

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Speaker 4: the jury. And then then he had those three hours

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Speaker 4: on the stands where the judge decided that he couldn't

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Speaker 4: use that and he couldn't talk about that in front

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Speaker 4: of the jury, and that was really a hit on

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Speaker 4: his defense. And if you go back, I mean even

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Speaker 4: before the trial, the judge, as you mentioned, said that

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Speaker 4: he couldn't use expert witnesses, and the judge threw him

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Speaker 4: into jail after he had communicated with the press, and

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Speaker 4: that was really a surprise too, because he had a

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Speaker 4: huge bail package and the defense was coming in to

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Speaker 4: agree that day to a gag order. Instead, the judge

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Speaker 4: decided that he was going to throw him into jail

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Speaker 4: weeks before the trial, and that really puts a strain

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Speaker 4: on the defense in more ways than one. I mean,

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Speaker 4: not only did he not have his adderall when he

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Speaker 4: was in jail, not have the right dose of it,

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Speaker 4: but he's a vegan and he didn't get the kind

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Speaker 4: of food he eats. He didn't get the kind of

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Speaker 4: food at the Brooklyn Detention Center, so everyone saw that

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Speaker 4: he lost a lot of weight when it came to

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Speaker 4: the courtroom. But more than that, it's very difficult to

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Speaker 4: prepare for trial when you're behind bars and your lawyer

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Speaker 4: has to make appointments to meet you, and you don't

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Speaker 4: have access to all the documents and you know, the

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Speaker 4: internet and the things you need. So it really was

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Speaker 4: an uphill battle for him from the very beginning.

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Speaker 3: And so we've had this uphill battle go on for

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Speaker 3: just about a month. After a relatively quick jury decision,

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Speaker 3: we are expecting that Sam Bankminfried and his lawyers are

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Speaker 3: going to appeal this verdict. How do you expect that

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Speaker 3: to go?

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Speaker 4: Now, Well, you know, they have a lot of issues

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Speaker 4: that they can appeal on, and they're the ones that

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Speaker 4: I was just talking about, the judge turning down the

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Speaker 4: advice of counsel and the expert witnesses, and I'm sure

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Speaker 4: they have a lot more from what happened at trial,

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Speaker 4: but it's it's very difficult to get a conviction reversed

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Speaker 4: on appeal. It happens, but it's very difficult because a

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Speaker 4: lot of these decisions are what they say, you know,

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Speaker 4: in the discretion of the judge, and the appellate court

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Speaker 4: won't touch a lot of a lot of these decisions

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Speaker 4: if they feel that it was in the discretion of

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Speaker 4: the judge and that these may all fit in that category.

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Speaker 4: So you know they will. They do have a lot

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Speaker 4: to talk about, They do have a lot to raise

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Speaker 4: on appeal, but you know, it's another uphill battle for him.

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