1 00:00:00,200 --> 00:00:05,000 Speaker 1: This is Tom Keane introducing you to the Bloomberg Daybreak Podcast, 2 00:00:05,400 --> 00:00:08,240 Speaker 1: a roundup of the top stories from Wall Street to 3 00:00:08,440 --> 00:00:12,880 Speaker 1: Washington and today. For our Bloomberg Surveillance audience, we bring 4 00:00:12,920 --> 00:00:15,400 Speaker 1: you a sample of the show. Click the link in 5 00:00:15,480 --> 00:00:21,200 Speaker 1: this description to subscribe to the Bloomberg Daybreak Podcast on Apple, Spotify, 6 00:00:21,720 --> 00:00:23,280 Speaker 1: or anywhere you listen. 7 00:00:26,360 --> 00:00:29,560 Speaker 2: Good morning, I'm Nathan Hager and I'm Amy Morris. Here 8 00:00:29,640 --> 00:00:32,920 Speaker 2: are the stories we're following today. We're going to begin 9 00:00:32,960 --> 00:00:35,640 Speaker 2: with the deal in the Middle East. Israel and Hamas 10 00:00:35,720 --> 00:00:37,920 Speaker 2: have come to an agreement that we'll see dozens of 11 00:00:37,960 --> 00:00:41,280 Speaker 2: hostages freed from Gaza in return for a four day 12 00:00:41,320 --> 00:00:44,159 Speaker 2: pause in the fighting and the release of Palestinian prisoners. 13 00:00:44,320 --> 00:00:47,479 Speaker 2: Bloomberg Simon Marx begins our team coverage in Tel Aviv. 14 00:00:48,000 --> 00:00:51,040 Speaker 3: In the fine print of the deal, there is an 15 00:00:51,080 --> 00:00:56,960 Speaker 3: opportunity for additional days of so called pause. Israel have 16 00:00:57,120 --> 00:01:00,760 Speaker 3: said that for every ten additional hostages they would be 17 00:01:00,800 --> 00:01:04,399 Speaker 3: willing to add an additional day of pause in the war. 18 00:01:05,040 --> 00:01:08,600 Speaker 3: But at the same time, Benjamin Natanyahu, the Prime Minister, 19 00:01:09,120 --> 00:01:11,360 Speaker 3: has been very clear to say this does not mean 20 00:01:11,360 --> 00:01:14,240 Speaker 3: the end of the conflict, and that their original goals 21 00:01:14,280 --> 00:01:19,720 Speaker 3: to eradicate Hamas and deradicalize Gaza, etc. Is still very 22 00:01:19,760 --> 00:01:20,600 Speaker 3: much the state today. 23 00:01:20,800 --> 00:01:23,679 Speaker 4: Bloomberg Sigmon Mark says the pause is expected to begin 24 00:01:23,840 --> 00:01:24,639 Speaker 4: tomorrow morning. 25 00:01:25,040 --> 00:01:28,080 Speaker 2: This temporary ceasefire was pushed for by the US and 26 00:01:28,120 --> 00:01:31,920 Speaker 2: its allies. We get more from Bloomberg political contributor Genie 27 00:01:31,959 --> 00:01:32,600 Speaker 2: she and Zano. 28 00:01:33,000 --> 00:01:36,760 Speaker 5: It is a big, big move forward for many people 29 00:01:36,800 --> 00:01:40,240 Speaker 5: because it's really the first diplomatic breakthrough we've seen since 30 00:01:40,319 --> 00:01:43,320 Speaker 5: the war began after the October seventh attack. But it 31 00:01:43,400 --> 00:01:47,720 Speaker 5: comes with so much trepidation and so many questions. This 32 00:01:47,760 --> 00:01:50,880 Speaker 5: is not a cease fire, it's a pause. It comes 33 00:01:50,960 --> 00:01:54,920 Speaker 5: also as a result of enormous pressure both inside Israel 34 00:01:55,040 --> 00:01:59,840 Speaker 5: and internationally that the Israeli government has been feeling, particularly 35 00:02:00,040 --> 00:02:03,560 Speaker 5: from the relatives of these two hundred and thirty six hostages. 36 00:02:03,880 --> 00:02:07,440 Speaker 2: Bloomberg contributor Genie she and Zano says three Americans will 37 00:02:07,480 --> 00:02:09,800 Speaker 2: be among the hostages leaving Gaza amy. 38 00:02:09,840 --> 00:02:12,520 Speaker 4: Another major story we're following this morning is the return 39 00:02:12,680 --> 00:02:16,400 Speaker 4: of sam Aldman to open Ai, just days after he 40 00:02:16,560 --> 00:02:20,040 Speaker 4: was fired then hired by Microsoft. Sam Aldman is back 41 00:02:20,080 --> 00:02:23,160 Speaker 4: as CEO, and the board at open Ai is in 42 00:02:23,240 --> 00:02:26,120 Speaker 4: for an overhaul. We get more from Bloomberg Intelligence analyst 43 00:02:26,200 --> 00:02:27,080 Speaker 4: Matthew Bloxham. 44 00:02:27,400 --> 00:02:29,640 Speaker 6: I kind of think that the board were backed into 45 00:02:30,160 --> 00:02:32,040 Speaker 6: a corner, and you know, I think they risk just 46 00:02:32,480 --> 00:02:35,840 Speaker 6: seeing the company unravel. So I don't think they had 47 00:02:36,240 --> 00:02:38,960 Speaker 6: really any choice. I think from Nahir, the big questions 48 00:02:39,000 --> 00:02:41,519 Speaker 6: are going to be, Okay, what's the detail, what you 49 00:02:41,600 --> 00:02:44,240 Speaker 6: know beyond a new board that looks more supportive of 50 00:02:44,320 --> 00:02:46,960 Speaker 6: Sam Altman, are they going to be more profound changes 51 00:02:47,000 --> 00:02:49,679 Speaker 6: to the structure of the company. What does this mean 52 00:02:49,760 --> 00:02:52,720 Speaker 6: for the possible IPO, How they're going to kind of 53 00:02:52,720 --> 00:02:57,240 Speaker 6: commercialize things like chat GPT more effectively, to kind of 54 00:02:57,240 --> 00:02:59,080 Speaker 6: take advantage of the opportunity. 55 00:02:58,560 --> 00:03:01,800 Speaker 4: That Matt block and with Bloomberg Intelligence says the initial 56 00:03:01,840 --> 00:03:04,120 Speaker 4: board will be led by Brett Taylor, a former co 57 00:03:04,280 --> 00:03:08,720 Speaker 4: CEO of Salesforce. Other directors include Quorra CEO, Adam DiAngelo, 58 00:03:09,000 --> 00:03:11,880 Speaker 4: and Larry Summers, the former Treasury secretary and a paid 59 00:03:11,880 --> 00:03:13,560 Speaker 4: contributor to Bloomberg. 60 00:03:13,440 --> 00:03:16,600 Speaker 2: And sources say Microsoft is also likely to get representation 61 00:03:16,800 --> 00:03:19,920 Speaker 2: on the new board, certainly as an observer, possibly with 62 00:03:20,000 --> 00:03:22,640 Speaker 2: one or more board seats. In a post on x, 63 00:03:22,919 --> 00:03:27,480 Speaker 2: Microsoft CEO Satynadella praised the changes at OpenAI, calling them 64 00:03:27,560 --> 00:03:30,320 Speaker 2: quote a first essential step on a path to a 65 00:03:30,360 --> 00:03:33,480 Speaker 2: more stable, well informed, and effective governance. 66 00:03:33,720 --> 00:03:36,480 Speaker 4: On a very busy morning, Amy, we're also following market 67 00:03:36,520 --> 00:03:39,520 Speaker 4: reaction to one of the most highly anticipated earnings reports. 68 00:03:40,120 --> 00:03:43,680 Speaker 4: Shares of Nvidia are down nearly one percent in early training. 69 00:03:43,720 --> 00:03:47,200 Speaker 4: That's despite an earning's blowout that went past analyst estimates. 70 00:03:47,320 --> 00:03:49,600 Speaker 4: We get more on that from Bloomberg technology reporter at 71 00:03:49,640 --> 00:03:50,960 Speaker 4: Ludlow in San Francisco. 72 00:03:51,320 --> 00:03:51,920 Speaker 2: We go to the. 73 00:03:51,880 --> 00:03:55,200 Speaker 7: Outlook for the fiscal fourth courser sales would be twenty 74 00:03:55,200 --> 00:03:58,520 Speaker 7: billion dollars plus or minus two percent. And while that's 75 00:03:58,520 --> 00:04:01,640 Speaker 7: a really strong outlook, there was so commentary from Nvidia 76 00:04:01,800 --> 00:04:05,760 Speaker 7: that they expect sales or shipments of GPUs to China 77 00:04:05,840 --> 00:04:09,000 Speaker 7: to drop in the current period or the fiscal fourth quarter, 78 00:04:09,440 --> 00:04:14,120 Speaker 7: as a direct result of the expanded US technology export curves. 79 00:04:14,280 --> 00:04:17,440 Speaker 7: What we're talking about is in Vidia's inability to ship 80 00:04:17,520 --> 00:04:20,680 Speaker 7: the cutting edge GPUs to the Chinese market, but they 81 00:04:20,680 --> 00:04:24,039 Speaker 7: were very clear that will be offset by demand from 82 00:04:24,040 --> 00:04:25,600 Speaker 7: other markets around the world. 83 00:04:25,920 --> 00:04:29,160 Speaker 4: Bloomberg's Ed Ludlow says another reason behind in Vidia's drop 84 00:04:29,279 --> 00:04:31,600 Speaker 4: was its run up this year, and video was already 85 00:04:31,640 --> 00:04:34,360 Speaker 4: hied by more than two hundred and forty percent. 86 00:04:34,520 --> 00:04:37,080 Speaker 2: And a big name in the cryptocurrency space is taking 87 00:04:37,120 --> 00:04:41,080 Speaker 2: a legal fall. Binance, the world's largest crypto exchange, has 88 00:04:41,160 --> 00:04:45,240 Speaker 2: pleaded guilty to anti money laundering and sanctions violations. Attorney 89 00:04:45,279 --> 00:04:49,720 Speaker 2: General Merrick Garland says Binance failed to stop suspicious transactions 90 00:04:49,760 --> 00:04:54,120 Speaker 2: with terror groups including Hamas, and violated several laws, including 91 00:04:54,160 --> 00:04:55,520 Speaker 2: the Bank Secrecy Act. 92 00:04:56,080 --> 00:05:00,240 Speaker 8: These laws ensure that our financial institutions are not available 93 00:05:00,440 --> 00:05:06,400 Speaker 8: to designated terrorist organizations, drug traffickers, and sanctioned nation states 94 00:05:06,440 --> 00:05:09,520 Speaker 8: that threaten public safety and our national security. 95 00:05:09,839 --> 00:05:12,880 Speaker 2: Attorney General Garland says Finance will pay four point three 96 00:05:13,000 --> 00:05:17,159 Speaker 2: billion dollars under the deal, and its CEOCZZL will step 97 00:05:17,200 --> 00:05:19,839 Speaker 2: down and pay a fifty million dollar fine. Sal could 98 00:05:19,839 --> 00:05:22,240 Speaker 2: face up to ten years in prison, but is expected 99 00:05:22,240 --> 00:05:24,080 Speaker 2: to serve no more than eighteen months. 100 00:05:24,200 --> 00:05:26,680 Speaker 4: And on the economic front, amy investors will have to 101 00:05:26,720 --> 00:05:30,039 Speaker 4: navigate a number of reports this morning. Almost all of 102 00:05:30,200 --> 00:05:34,440 Speaker 4: Thursday and Friday's numbers have been compressed into today, so 103 00:05:34,520 --> 00:05:36,920 Speaker 4: let's get a preview now from Bloomberg's Michael McKay. 104 00:05:37,279 --> 00:05:40,840 Speaker 9: The marquee release is initial jobless claims Wall Street wants 105 00:05:40,880 --> 00:05:43,359 Speaker 9: to know if last week's surprise jumped to two hundred 106 00:05:43,400 --> 00:05:46,120 Speaker 9: and thirty one thousand was a one off or assigned. 107 00:05:46,120 --> 00:05:49,520 Speaker 9: The labor market is starting to cool significantly October durable 108 00:05:49,520 --> 00:05:52,240 Speaker 9: goods orders. Meanwhile, we'll offer the first clues to business 109 00:05:52,320 --> 00:05:55,400 Speaker 9: spending plans in the fourth quarter. A drop in Boeing 110 00:05:55,520 --> 00:05:59,000 Speaker 9: jet sales may depress the overall headline number, while capital 111 00:05:59,040 --> 00:06:03,040 Speaker 9: goods orders oxy for business spending in GDP are forecast 112 00:06:03,080 --> 00:06:06,520 Speaker 9: to eke out only a marginal gain. Finally, the University 113 00:06:06,520 --> 00:06:10,440 Speaker 9: of Michigan's final reading of consumer sentiment for November may 114 00:06:10,560 --> 00:06:14,760 Speaker 9: influence some investors' views of holiday season consumer spending. Michael McKee, 115 00:06:14,800 --> 00:06:23,000 Speaker 9: Bloomberg Radio. 116 00:06:20,080 --> 00:06:22,000 Speaker 2: All right, thank you, Nathan. Time now for a look 117 00:06:22,040 --> 00:06:24,520 Speaker 2: at some of the other stories making news around the world, 118 00:06:24,720 --> 00:06:27,240 Speaker 2: and for that were joined by Bloomberg's of John Tucker, 119 00:06:27,240 --> 00:06:28,800 Speaker 2: Good morning John, and. 120 00:06:28,800 --> 00:06:32,520 Speaker 10: Good morning Amy. The Pentagon confirming it conducted an airstrike 121 00:06:32,600 --> 00:06:36,360 Speaker 10: against Iranian backed militants operating out of Iraq. Let's get 122 00:06:36,360 --> 00:06:38,880 Speaker 10: more of the story this morning from Bloomberg's Ed Baxter. 123 00:06:39,800 --> 00:06:42,520 Speaker 11: The Pentagon says it was in response to several short 124 00:06:42,640 --> 00:06:46,039 Speaker 11: range missile attacks. Pentagon spokeswoman Sabrina. 125 00:06:45,640 --> 00:06:49,360 Speaker 12: Sang Immediately following the attack, a US military AC one 126 00:06:49,440 --> 00:06:52,760 Speaker 12: thirty aircraft in the area conducted a self defense strike 127 00:06:52,839 --> 00:06:56,120 Speaker 12: against an Iranian backed militia vehicle and a number of 128 00:06:56,120 --> 00:07:00,479 Speaker 12: Iranian backed militia personnel involved in this attack. This self 129 00:07:00,480 --> 00:07:03,320 Speaker 12: defense strike resulted in some hostile fatalities. 130 00:07:03,560 --> 00:07:06,920 Speaker 11: Seeingh says some US service members were injured in the attack. 131 00:07:07,279 --> 00:07:10,760 Speaker 11: She also says the US conducted three additional strikes in 132 00:07:10,800 --> 00:07:13,200 Speaker 11: Syria at Baxter Bloomberg Radio. 133 00:07:13,280 --> 00:07:17,200 Speaker 10: Florida Governor Ron de Santis secure the endorsement of influential 134 00:07:17,280 --> 00:07:21,440 Speaker 10: Iowa conservative Bob vnder Platz. Vander Platz backing is the 135 00:07:21,440 --> 00:07:24,560 Speaker 10: second major endorsement for DeSantis in Iowa this month, following 136 00:07:24,600 --> 00:07:28,440 Speaker 10: Governor Kim Reynolds. Both vender Plants and Renolds are influential 137 00:07:28,480 --> 00:07:32,960 Speaker 10: among evangelical voters, a sizeable blanc of the state. DeSantis 138 00:07:33,200 --> 00:07:35,840 Speaker 10: is making a make or break prush shit in that state, 139 00:07:35,960 --> 00:07:39,080 Speaker 10: banking on a strong showing they can give him momentum 140 00:07:39,120 --> 00:07:42,200 Speaker 10: to stay in the race. Pull showed Desanti's trailing Donald 141 00:07:42,200 --> 00:07:46,240 Speaker 10: Trump by over forty five points for those early holiday 142 00:07:46,320 --> 00:07:49,960 Speaker 10: travelers leaving before dawn to avoid the rush may work 143 00:07:49,960 --> 00:07:52,760 Speaker 10: in some parts of the nation, but not in other parts. 144 00:07:53,000 --> 00:07:55,600 Speaker 10: Bloomberg meteorologist Rod Carolyn. 145 00:07:56,040 --> 00:07:58,920 Speaker 13: Most of the country looking good for travel on this Wednesday, 146 00:07:58,920 --> 00:08:01,800 Speaker 13: ahead of the big Thanksgiving Day holiday. We have problems though, 147 00:08:01,800 --> 00:08:04,440 Speaker 13: in the eastern United States with rain from North Florida, 148 00:08:04,440 --> 00:08:07,760 Speaker 13: along the coastal Carolinas, and into parts of New England, 149 00:08:07,920 --> 00:08:10,000 Speaker 13: especially northern New England, where we'll be dealing with some 150 00:08:10,080 --> 00:08:13,960 Speaker 13: snow today. The Pacific Northwest will also deal with precipitation rain, 151 00:08:14,120 --> 00:08:16,280 Speaker 13: likely at the lower elevations, with snow in the mountains. 152 00:08:16,480 --> 00:08:18,880 Speaker 10: Today is one of the busiest travel days of the year. 153 00:08:19,240 --> 00:08:22,080 Speaker 10: A Florida judge who's ruled Tesla's trial over a twenty 154 00:08:22,160 --> 00:08:26,120 Speaker 10: nineteen fatal crash blamed on autopilot will include a claim 155 00:08:26,200 --> 00:08:29,760 Speaker 10: against the company for punitive damages. The judge at Palm 156 00:08:29,840 --> 00:08:33,880 Speaker 10: Beach County cited evidence that shows CEO Elon Moskin staff 157 00:08:33,920 --> 00:08:38,839 Speaker 10: engineers knew its driver assistance system was defective. Global News 158 00:08:38,840 --> 00:08:41,160 Speaker 10: twenty four hours a day and whenever you want it 159 00:08:41,160 --> 00:08:44,600 Speaker 10: with Bloomberg News. Now, I'm John Tucker, and this is 160 00:08:44,640 --> 00:08:45,560 Speaker 10: Bloomberg Amy. 161 00:08:45,720 --> 00:08:52,240 Speaker 2: All right, thank you, John. Time enough for our Bloomberg 162 00:08:52,280 --> 00:08:54,720 Speaker 2: Sports Update. For that we bring in John stash Hour. 163 00:08:55,240 --> 00:08:57,720 Speaker 14: Aiming only two weeks to go in the college football 164 00:08:57,760 --> 00:09:01,920 Speaker 14: regular season, and the College Football Playoff Committee out with 165 00:09:02,040 --> 00:09:05,040 Speaker 14: its latest poll last night. Georgia remains number one, with 166 00:09:05,120 --> 00:09:08,840 Speaker 14: Ohio State second Michigan third. Those two teams play each 167 00:09:08,880 --> 00:09:12,000 Speaker 14: other Saturday in ann Arbor. A change at the four 168 00:09:12,080 --> 00:09:16,560 Speaker 14: spot Washington moving ahead of Florida State, the Committee denying 169 00:09:16,640 --> 00:09:18,640 Speaker 14: that it's due to Florida State having just lost its 170 00:09:18,720 --> 00:09:22,440 Speaker 14: quarterback Jordan Travis to a season ending injury. Oregon is 171 00:09:22,480 --> 00:09:26,760 Speaker 14: currently sixth, will play Oregon State on Friday. Texas is seventh, 172 00:09:27,000 --> 00:09:31,000 Speaker 14: The Longhorns played Texas Tech on Friday, and Alabama is eighth, 173 00:09:31,040 --> 00:09:33,880 Speaker 14: and the Crimston Tide play the Iron Bowl Game against 174 00:09:33,920 --> 00:09:37,160 Speaker 14: Auburn on Saturday. College basketball, a lot of the top 175 00:09:37,200 --> 00:09:39,719 Speaker 14: teams of the nation have gone to Maui. Number one 176 00:09:39,840 --> 00:09:43,320 Speaker 14: Kansas lost to fourth rank Marquette seventy three p fifty nine. 177 00:09:43,640 --> 00:09:47,320 Speaker 14: Second ranked Purdue a seventy one sixty seven victory over 178 00:09:47,400 --> 00:09:52,000 Speaker 14: seventh ranked Tennessee in the NBA A game between Indiana 179 00:09:52,040 --> 00:09:55,560 Speaker 14: and Atlanta, and both teams scored over one hundred and 180 00:09:55,559 --> 00:09:58,000 Speaker 14: fifty points. That's only the seventh time that's ever happened 181 00:09:58,040 --> 00:10:01,240 Speaker 14: in NBA history. The Pacers be the Hawks one fifty 182 00:10:01,360 --> 00:10:05,000 Speaker 14: seven to one fifty two. Both teams shot sixty percent 183 00:10:05,040 --> 00:10:08,280 Speaker 14: from the field. San Diego Padres have named Mike Schilt 184 00:10:08,280 --> 00:10:10,960 Speaker 14: their new manager. He managed the Cardinals for four years, 185 00:10:10,960 --> 00:10:14,559 Speaker 14: got them into the playoffs three times. He replaces Bob Melvin, 186 00:10:14,600 --> 00:10:18,160 Speaker 14: who left the Padres to go to the Giants. Willie Hernandez, 187 00:10:18,160 --> 00:10:20,640 Speaker 14: who won the Cy Young Award and the MVP in 188 00:10:20,760 --> 00:10:23,280 Speaker 14: nineteen eighty four pitching for the Tigers, has passed away 189 00:10:23,559 --> 00:10:26,600 Speaker 14: at sixty nine. Johns Dasheur Bloomberg Sports. 190 00:10:29,360 --> 00:10:32,360 Speaker 15: From coast to coast, from New York to San Francisco, 191 00:10:32,679 --> 00:10:37,319 Speaker 15: Boston to Washington, DC, nationwide on Syrias, exam the Bloomberg 192 00:10:37,360 --> 00:10:41,520 Speaker 15: Business app in Bloomberg dot Com. This is Bloomberg Daybreak. 193 00:10:42,800 --> 00:10:44,120 Speaker 15: Good morning, I'm Nathan Haker. 194 00:10:44,280 --> 00:10:48,480 Speaker 4: The relentless war in Gaza since Thomas's October seventh attack 195 00:10:48,600 --> 00:10:52,160 Speaker 4: on Israel looks like it's taking a pause. Both sides 196 00:10:52,240 --> 00:10:55,360 Speaker 4: have reached a deal that we'll see Hamas release dozens 197 00:10:55,400 --> 00:10:58,880 Speaker 4: of hostages in exchange for Palestinian prisoners and for more 198 00:10:58,920 --> 00:11:01,280 Speaker 4: on this agreement. We are joined by Bloomberg News Senior 199 00:11:01,400 --> 00:11:04,559 Speaker 4: editor Bill Ferries. Bill, thanks for being with us. Let's 200 00:11:04,559 --> 00:11:07,040 Speaker 4: start off first with the terms of this deal. What 201 00:11:07,360 --> 00:11:10,880 Speaker 4: exactly have Israel and Hamas agreed to after these days 202 00:11:10,920 --> 00:11:11,480 Speaker 4: of talks. 203 00:11:13,040 --> 00:11:16,040 Speaker 16: Well, what we know from both sides and from the Qataris, 204 00:11:16,080 --> 00:11:19,360 Speaker 16: who have been really kind of leading the mediation efforts 205 00:11:19,400 --> 00:11:23,000 Speaker 16: here is that within the next less than twenty four 206 00:11:23,040 --> 00:11:27,160 Speaker 16: hours now at this point, what we call a humanitarian 207 00:11:27,240 --> 00:11:30,839 Speaker 16: pause and the conflict will go into effect. Hamas has 208 00:11:30,880 --> 00:11:35,000 Speaker 16: agreed to free initially fifty hostages. We expect these to 209 00:11:35,040 --> 00:11:38,760 Speaker 16: be women and children who were taken when they stormed 210 00:11:38,800 --> 00:11:43,280 Speaker 16: into Israel on October seventh. In return, Israel we'll begin 211 00:11:43,400 --> 00:11:48,480 Speaker 16: looking at releasing perhaps dozens of Palestinian prisoners, also likely 212 00:11:48,520 --> 00:11:51,679 Speaker 16: to be women and children. But the interesting thing about 213 00:11:51,679 --> 00:11:54,000 Speaker 16: this is it's a four day pause, but there's a 214 00:11:54,080 --> 00:11:58,280 Speaker 16: potential for an extension here if Hamas agrees to release 215 00:11:58,360 --> 00:12:04,600 Speaker 16: more hostages. So for every additional ten hostages the Hamas releases, 216 00:12:04,679 --> 00:12:09,360 Speaker 16: that extends the pause by a day. Remember, Israel estimates 217 00:12:09,360 --> 00:12:13,080 Speaker 16: about two hundred and forty people were taken hostage during 218 00:12:13,080 --> 00:12:15,920 Speaker 16: those October seventh attacks, So this has the potential to 219 00:12:15,960 --> 00:12:19,760 Speaker 16: extend the deal quite a bit. In return, as I said, 220 00:12:19,800 --> 00:12:23,920 Speaker 16: Hamas gets some prisoner releases from Israeli prisons. They also 221 00:12:24,480 --> 00:12:28,560 Speaker 16: get an end to over flights and bombing air strikes 222 00:12:29,679 --> 00:12:35,560 Speaker 16: of Gaza in that time, and really the chance to 223 00:12:35,640 --> 00:12:38,720 Speaker 16: get a lot more aid flowing in in terms of 224 00:12:38,800 --> 00:12:43,440 Speaker 16: medical supplies and fuel for nonprofit groups that do humanitarian work. 225 00:12:43,840 --> 00:12:46,600 Speaker 16: So all sides I think had an interest at this 226 00:12:46,679 --> 00:12:49,720 Speaker 16: point in getting reaching a deal. There were a lot 227 00:12:49,760 --> 00:12:51,760 Speaker 16: of hiccups in the process, but it looks like it 228 00:12:51,800 --> 00:12:54,760 Speaker 16: should be going into effect within the coming day. 229 00:12:55,720 --> 00:12:58,959 Speaker 4: Let's talk about some of those hiccups, because, as you know, Bill, 230 00:12:59,080 --> 00:13:03,120 Speaker 4: Israeli Prime Minister Benjamin Netan yahoo had said as these 231 00:13:03,120 --> 00:13:05,520 Speaker 4: talks were underway that he wouldn't agree to any pause 232 00:13:05,600 --> 00:13:08,640 Speaker 4: at all unless all the hostages were freed. So what 233 00:13:08,760 --> 00:13:11,680 Speaker 4: did it take to get at least this kind of 234 00:13:11,720 --> 00:13:14,880 Speaker 4: a deal done, the possibility that we could see more pauses, 235 00:13:15,320 --> 00:13:19,640 Speaker 4: and this potential for a trickle of hostages to be 236 00:13:19,720 --> 00:13:20,720 Speaker 4: released over time. 237 00:13:22,040 --> 00:13:23,760 Speaker 16: Well, you're right, it wasn't clear at all that a 238 00:13:23,800 --> 00:13:27,480 Speaker 16: deal would ever happen. Katar got involved soon after those 239 00:13:27,520 --> 00:13:31,680 Speaker 16: October seventh attacks and started trying to find a way 240 00:13:31,720 --> 00:13:35,640 Speaker 16: to focus really on hostages and getting them back the US. 241 00:13:35,679 --> 00:13:40,040 Speaker 16: The Biden administration was deeply involved in these talks as well, 242 00:13:40,440 --> 00:13:42,760 Speaker 16: and you're right they did. There was this push to 243 00:13:42,800 --> 00:13:46,360 Speaker 16: have all hostages released at once that didn't seem to 244 00:13:46,400 --> 00:13:49,719 Speaker 16: be getting much traction, and Hamas came back with an 245 00:13:49,720 --> 00:13:54,439 Speaker 16: offer of fifty fifty hostages in one trench and then 246 00:13:54,640 --> 00:13:57,440 Speaker 16: put potentially more in the coming days. What we know 247 00:13:57,600 --> 00:14:00,679 Speaker 16: is that the leader of Katar continued to stay very 248 00:14:00,679 --> 00:14:05,520 Speaker 16: engaged in this and we UH, what we what we 249 00:14:05,600 --> 00:14:12,040 Speaker 16: ended up seeing was was really in agreement to kind 250 00:14:12,040 --> 00:14:15,240 Speaker 16: of kind of bridge that divide with the fifty UH. 251 00:14:15,520 --> 00:14:19,240 Speaker 16: President Biden had had a conversation with President Prime Minister 252 00:14:19,320 --> 00:14:22,200 Speaker 16: net Yahoo at one point and they really felt like 253 00:14:23,320 --> 00:14:26,080 Speaker 16: this was probably the best deal they could get for now. 254 00:14:26,200 --> 00:14:29,040 Speaker 16: The US was really encouraged by the early release of 255 00:14:29,080 --> 00:14:32,480 Speaker 16: a couple Americans who were taken in the October seventh 256 00:14:32,480 --> 00:14:35,640 Speaker 16: grade and UH, and they basically built on that. So 257 00:14:35,680 --> 00:14:38,840 Speaker 16: they went from an initial request of fifty to to 258 00:14:38,920 --> 00:14:42,160 Speaker 16: what could be dozens more than that. We kind of 259 00:14:42,200 --> 00:14:44,440 Speaker 16: have to see where it goes. But the priority was 260 00:14:44,480 --> 00:14:49,320 Speaker 16: always on initially on women and children and the elderly civilians, 261 00:14:49,400 --> 00:14:53,240 Speaker 16: and then looking more at uh at soldiers from both sides. 262 00:14:53,280 --> 00:14:56,000 Speaker 16: And I think that's where talks on further releases will 263 00:14:56,040 --> 00:14:56,960 Speaker 16: get more complicated. 264 00:14:57,720 --> 00:15:01,480 Speaker 4: And even as we see this deal i'll get implemented, 265 00:15:01,520 --> 00:15:04,960 Speaker 4: as you say, possibly as soon as after tomorrow. Prime 266 00:15:04,960 --> 00:15:08,080 Speaker 4: Minister Natan Yahoo is saying that this won't mean that 267 00:15:08,160 --> 00:15:11,200 Speaker 4: the war itself is coming to an end. What should 268 00:15:11,200 --> 00:15:14,560 Speaker 4: we expect when it comes to the fighting and the 269 00:15:14,600 --> 00:15:18,680 Speaker 4: progress that Israel wants to make against Thomas once this 270 00:15:19,000 --> 00:15:21,680 Speaker 4: potentially initial pause takes effect. 271 00:15:22,280 --> 00:15:24,160 Speaker 16: Yeah, I mean, I think it's important to note that 272 00:15:24,240 --> 00:15:27,320 Speaker 16: all sides are calling this a pause. I think I've 273 00:15:27,320 --> 00:15:30,080 Speaker 16: seen the word true, so temporary truth, things like that. 274 00:15:30,480 --> 00:15:33,080 Speaker 16: No one is calling this an end to the conflict. 275 00:15:33,400 --> 00:15:37,120 Speaker 16: Before they voted to accept this agreement, they've said that 276 00:15:37,440 --> 00:15:39,520 Speaker 16: the war will continue. They can they want to go 277 00:15:39,600 --> 00:15:43,960 Speaker 16: after eliminating Hamas and returning all the hostages, and they said, 278 00:15:44,000 --> 00:15:46,160 Speaker 16: you know, when this truce ends, they will they will 279 00:15:46,200 --> 00:15:48,920 Speaker 16: go back in the fighting will zoom. So it's an 280 00:15:48,920 --> 00:15:51,600 Speaker 16: important significant step here, but it's not the end of 281 00:15:51,640 --> 00:15:53,560 Speaker 16: the conflict as we know in Okay. 282 00:15:53,600 --> 00:15:57,360 Speaker 4: Bill Ferries, Bloomberg News senior editor joining us this morning 283 00:15:57,520 --> 00:16:00,760 Speaker 4: after we learned that a deal has been instruck now 284 00:16:00,760 --> 00:16:05,160 Speaker 4: between Israel and Hamas to pause the fighting in exchange 285 00:16:05,360 --> 00:16:10,080 Speaker 4: for hostage releases at least some of the hostages initially 286 00:16:10,320 --> 00:16:14,360 Speaker 4: being released from Gaza. Now we want to turn to 287 00:16:14,960 --> 00:16:19,040 Speaker 4: the latest deal at open Ai. This saga that began 288 00:16:19,320 --> 00:16:25,040 Speaker 4: last Friday may be over after intense pressure from investors. 289 00:16:25,440 --> 00:16:29,080 Speaker 4: Sam Altman is returning as the CEO of the chat 290 00:16:29,120 --> 00:16:32,880 Speaker 4: GPT parent company, and the board at OpenAI looks like 291 00:16:32,960 --> 00:16:35,640 Speaker 4: it is about to go through a serious overhaul. Let's 292 00:16:35,640 --> 00:16:38,720 Speaker 4: bring in Alex Web for more on this story. Covers 293 00:16:38,760 --> 00:16:41,360 Speaker 4: tech for us for Bloomberg News and has been following 294 00:16:41,360 --> 00:16:46,240 Speaker 4: this since the sudden ouster last Friday and now the 295 00:16:46,280 --> 00:16:50,400 Speaker 4: sudden return. Help us make sense of this, Alex, I. 296 00:16:50,400 --> 00:16:52,880 Speaker 17: Mean, it's a big victory for Microsoft. Essentially, the thing 297 00:16:52,920 --> 00:16:55,240 Speaker 17: that appears to have happened, and this is what's on 298 00:16:55,280 --> 00:16:58,400 Speaker 17: the reporting suggests last week is that one of the 299 00:16:58,400 --> 00:17:01,640 Speaker 17: reasons Sam Wilton was ousted was concerned that he was 300 00:17:02,040 --> 00:17:06,640 Speaker 17: prioritizing the commercial impulses of the company over what actually 301 00:17:07,080 --> 00:17:10,480 Speaker 17: is mandate, namely to improve and this genuinely is the 302 00:17:10,520 --> 00:17:12,960 Speaker 17: wording it is to work for the benefit of all humanity. 303 00:17:14,160 --> 00:17:18,400 Speaker 17: Now Microsoft is almost certainly going to be getting greater oversight, 304 00:17:18,520 --> 00:17:21,640 Speaker 17: greater sway at a board level over what happens at OpenAI. 305 00:17:22,160 --> 00:17:24,080 Speaker 17: The company is therefore going to be run ever so 306 00:17:24,119 --> 00:17:28,239 Speaker 17: slightly more in the interest of Microsoft, not necessarily in 307 00:17:28,280 --> 00:17:32,480 Speaker 17: the interest of all humanity. The three members have been 308 00:17:32,520 --> 00:17:34,840 Speaker 17: appointed to the board Adam DiAngelo, the Sea of Quorra, 309 00:17:34,920 --> 00:17:37,080 Speaker 17: who was already on there. The new ones are going 310 00:17:37,080 --> 00:17:40,240 Speaker 17: to be Larry Summers, of course, former Treasury Section under 311 00:17:40,240 --> 00:17:45,119 Speaker 17: Bill Clinton, and Brett Taylor, the former co CEO of Salesforce. 312 00:17:45,119 --> 00:17:47,399 Speaker 17: They are going to be as many as nine additional 313 00:17:47,680 --> 00:17:50,840 Speaker 17: board members. The expectation is that perhaps two of those 314 00:17:50,920 --> 00:17:55,359 Speaker 17: could be representatives of Microsoft, and Altman himself could well 315 00:17:55,400 --> 00:17:56,120 Speaker 17: rejoin the board. 316 00:17:56,400 --> 00:17:58,919 Speaker 4: And we should note in the interest of transparency that 317 00:17:59,200 --> 00:18:02,720 Speaker 4: Larry Summers, along with joining the board at open Ai 318 00:18:02,800 --> 00:18:06,840 Speaker 4: as a paid contributor to Bloomberg, with these additions, at 319 00:18:06,920 --> 00:18:10,000 Speaker 4: least initial additions to the board, Alex, it sounds like 320 00:18:10,080 --> 00:18:13,160 Speaker 4: that could be the bigger deal here than just simply 321 00:18:13,520 --> 00:18:16,000 Speaker 4: the return of Sam Altman as the CEO. 322 00:18:17,040 --> 00:18:19,520 Speaker 17: Yeah, the thing we'd heard on Monday from sat in Nodella, 323 00:18:19,560 --> 00:18:22,520 Speaker 17: the Microsoft CEO, in an into a Bloomberg television he 324 00:18:22,560 --> 00:18:26,280 Speaker 17: had said he wanted improvements to governance at open AI. 325 00:18:27,160 --> 00:18:29,760 Speaker 17: It seems as though the board composition was the sticking 326 00:18:29,800 --> 00:18:32,040 Speaker 17: point and why it took a good few days to 327 00:18:32,040 --> 00:18:34,280 Speaker 17: reach a resolution, given that we had heard as early 328 00:18:34,280 --> 00:18:38,560 Speaker 17: as Sunday that there were moved from both sides to 329 00:18:38,600 --> 00:18:43,040 Speaker 17: bring Sam Altman back into the fold. When Nadella says 330 00:18:43,040 --> 00:18:47,200 Speaker 17: he wants improvements to governance, everybody more or less understood 331 00:18:47,200 --> 00:18:49,240 Speaker 17: that to mean he wanted Microsoft to have better inside. 332 00:18:49,280 --> 00:18:52,359 Speaker 17: Because this completely blindsided Microsoft is firing of Sam Mortman 333 00:18:52,440 --> 00:18:56,920 Speaker 17: and subsequent departure of Greg Brockman, the president of the company. 334 00:18:57,880 --> 00:19:01,480 Speaker 17: Microsoft had no for forewarning of that. They learned it 335 00:19:01,520 --> 00:19:02,960 Speaker 17: pretty much at the same time the rest of the 336 00:19:03,000 --> 00:19:05,560 Speaker 17: world did. The understanding is it was maybe a few 337 00:19:05,560 --> 00:19:07,440 Speaker 17: minutes before they put the rest release out or the 338 00:19:07,680 --> 00:19:10,760 Speaker 17: post on their website app. So you know, surprises for 339 00:19:10,800 --> 00:19:13,880 Speaker 17: big businesses are not considered good and that's clearly something 340 00:19:13,920 --> 00:19:15,000 Speaker 17: that Microsoft wanted to fix. 341 00:19:15,240 --> 00:19:20,000 Speaker 4: To your point earlier about this signaling the idea that 342 00:19:21,520 --> 00:19:24,000 Speaker 4: this could take the open AI in the direction of 343 00:19:24,600 --> 00:19:28,200 Speaker 4: where Microsoft wants to go. As opposed to the betterment 344 00:19:28,320 --> 00:19:31,280 Speaker 4: of humanity. Talk a little bit more about what this 345 00:19:31,440 --> 00:19:35,240 Speaker 4: could mean for open AI and the competition, this massive 346 00:19:35,280 --> 00:19:38,280 Speaker 4: competition that we're seeing between Microsoft and so many of 347 00:19:38,280 --> 00:19:41,320 Speaker 4: the other players in the artificial intelligence space. What could 348 00:19:41,320 --> 00:19:42,360 Speaker 4: this mean down the line. 349 00:19:42,840 --> 00:19:46,000 Speaker 17: So there are basically four big players, certainly in the 350 00:19:46,000 --> 00:19:50,720 Speaker 17: Western hemisphere in this in you know, advanced artificial intelligence research. 351 00:19:50,760 --> 00:19:53,119 Speaker 17: There's deep Mind, which is now Google deep Mind. It 352 00:19:53,200 --> 00:19:55,720 Speaker 17: is part of Google. There is Microsoft sort of Meta 353 00:19:55,800 --> 00:20:00,359 Speaker 17: AI research O clearly part of Meta. There is open ai, 354 00:20:00,440 --> 00:20:02,520 Speaker 17: which is very closely aligned with Microsoft. And there is 355 00:20:02,560 --> 00:20:06,000 Speaker 17: also an Anthropic which was founded by a bunch of 356 00:20:06,040 --> 00:20:11,200 Speaker 17: departees from open Ai a few years ago. Google, Microsoft, 357 00:20:11,240 --> 00:20:13,560 Speaker 17: and Amazon are the ones really competing in the cloud. 358 00:20:13,600 --> 00:20:15,760 Speaker 17: And at the moment, the real way to make money 359 00:20:15,760 --> 00:20:17,679 Speaker 17: from AI is in the cloud. It is from not 360 00:20:17,720 --> 00:20:20,560 Speaker 17: necessarily selling the AI services to companies to use. It's 361 00:20:20,600 --> 00:20:24,199 Speaker 17: the processing power needed to run those AI services, and 362 00:20:24,200 --> 00:20:27,119 Speaker 17: that's where the margin really is. Google, Microsoft fams and 363 00:20:27,160 --> 00:20:31,000 Speaker 17: can compete very fiercely in that space. Microsoft has this 364 00:20:31,080 --> 00:20:33,679 Speaker 17: huge benefit from the relationship with open ai, but it 365 00:20:33,680 --> 00:20:36,720 Speaker 17: does not technically own open ai. And then the way 366 00:20:36,720 --> 00:20:39,960 Speaker 17: that Google owns DeepMind, so that's really the lay of 367 00:20:40,000 --> 00:20:42,200 Speaker 17: the land when it comes to the battlefield. This will 368 00:20:42,240 --> 00:20:45,840 Speaker 17: help Microsoft potentially by hewing them more closely still to 369 00:20:45,920 --> 00:20:47,320 Speaker 17: their long term business goals. 370 00:20:47,480 --> 00:20:50,000 Speaker 4: Let's talk about the other AI story that everyone was 371 00:20:50,040 --> 00:20:52,760 Speaker 4: waiting for even before last Friday. Of course, that's the 372 00:20:52,800 --> 00:20:57,080 Speaker 4: earnings from Nvidia. Another is a solid quarter, but the 373 00:20:57,160 --> 00:21:00,960 Speaker 4: shares are dropping ever so slightly that this morning. What's 374 00:21:01,040 --> 00:21:02,600 Speaker 4: the disconnect? 375 00:21:03,320 --> 00:21:07,159 Speaker 17: I mean, look, the expectations first Company are absolutely sky high, 376 00:21:07,240 --> 00:21:10,760 Speaker 17: and there was heading into the numbers some expectation that 377 00:21:10,960 --> 00:21:13,480 Speaker 17: essentially a beat is a meat, right, People were expecting 378 00:21:13,520 --> 00:21:16,840 Speaker 17: them to beat expectations, and if they didn't completely blow 379 00:21:16,880 --> 00:21:18,879 Speaker 17: expectations out of the water, then there might be a 380 00:21:18,920 --> 00:21:21,439 Speaker 17: little bit of profit taking. That certainly looks like what 381 00:21:21,600 --> 00:21:24,000 Speaker 17: is happening now that the shares have been on such 382 00:21:24,040 --> 00:21:26,600 Speaker 17: a tear in recent month, there's an opportunity for you know, 383 00:21:26,680 --> 00:21:28,719 Speaker 17: some investors to maybe just cash in a little bit 384 00:21:28,760 --> 00:21:31,640 Speaker 17: on that. It doesn't appear to be anything particularly catastrophic. 385 00:21:31,640 --> 00:21:33,880 Speaker 17: There's still a lot of growth left in this company. 386 00:21:34,160 --> 00:21:37,520 Speaker 17: The only question mark hetting forward is what is the 387 00:21:37,560 --> 00:21:40,320 Speaker 17: exposure to China? They want more exposure, but it looks 388 00:21:40,359 --> 00:21:42,520 Speaker 17: as though the government is cracking down on some of that. 389 00:21:42,920 --> 00:21:44,439 Speaker 17: How big an impact will that have? 390 00:21:47,600 --> 00:21:50,639 Speaker 18: This is Bloomberg Daybreak Today, your morning brief on the 391 00:21:50,680 --> 00:21:54,120 Speaker 18: story's making news from Wall Street to Washington and beyond. 392 00:21:54,240 --> 00:21:57,240 Speaker 2: Look for us on your podcast be by six am 393 00:21:57,359 --> 00:22:01,720 Speaker 2: Eastern each morning on Apple Spot and anywhere else you 394 00:22:01,800 --> 00:22:02,920 Speaker 2: get your podcasts. 395 00:22:03,440 --> 00:22:06,120 Speaker 18: You can also listen live each morning starting at five 396 00:22:06,200 --> 00:22:08,760 Speaker 18: am Wall Street Time on Bloomberg eleven three to zero 397 00:22:08,840 --> 00:22:11,720 Speaker 18: in New York, Bloomberg ninety nine to one in Washington, 398 00:22:11,800 --> 00:22:15,000 Speaker 18: Bloomberg one oh sixty one in Boston, and Bloomberg ninety 399 00:22:15,000 --> 00:22:16,520 Speaker 18: sixty in San Francisco. 400 00:22:17,080 --> 00:22:20,640 Speaker 2: Our flagship New York station is also available on your 401 00:22:20,760 --> 00:22:26,560 Speaker 2: Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty plus. 402 00:22:26,560 --> 00:22:31,480 Speaker 18: Listen coast to coast on the Bloomberg Business app, Siriusxmbiheartradio app, 403 00:22:31,520 --> 00:22:34,640 Speaker 18: and on Bloomberg dot Com. I'm Nathan Hager and. 404 00:22:34,640 --> 00:22:38,320 Speaker 2: I'm Aby Morris. Join us again tomorrow morning for all 405 00:22:38,359 --> 00:22:41,160 Speaker 2: the news you need to start your day right here 406 00:22:41,200 --> 00:22:42,520 Speaker 2: on Bloomberg Daybreak.