WEBVTT - Bonus Episode: Bloomberg Daybreak 0:00:00.120 --> 0:00:02.600 Hi, It's Carol and Tim's here too, and today we 0:00:02.640 --> 0:00:05.240 want to introduce you to the Bloomberg Daybreak podcast. 0:00:05.320 --> 0:00:08.440 We certainly do every day. Nathan Hager, Karen Moscow and 0:00:08.480 --> 0:00:10.920 Amy Morris bring you a roundup of the top stories 0:00:10.960 --> 0:00:13.840 from Wall Street to Washington and around the world. It's 0:00:13.880 --> 0:00:17.360 all in the Daybreak podcast feed by six am each morning. 0:00:17.200 --> 0:00:19.479 And today, for our BusinessWeek audience, we bring you a 0:00:19.560 --> 0:00:21.960 sample of the show. Click the link in this description 0:00:22.000 --> 0:00:25.400 to subscribe to the Bloomberg Daybreak podcast on Apple, Spotify, 0:00:25.520 --> 0:00:26.560 or anywhere you listen. 0:00:29.280 --> 0:00:31.080 Good morning, I'm Nathan Hager. 0:00:31.000 --> 0:00:34.479 And I'm Amy Morris. Here are the stories we're following today. 0:00:35.159 --> 0:00:37.400 We're going to begin with the deal in the Middle East. 0:00:37.440 --> 0:00:40.040 Israel and Hamas have come to an agreement that we'll 0:00:40.080 --> 0:00:43.400 see dozens of hostages freed from Gaza in return for 0:00:43.440 --> 0:00:45.840 a four day pause in the fighting and the release 0:00:45.840 --> 0:00:49.640 of Palestinian prisoners. Bloomberg Simon Marx begins our team coverage 0:00:49.680 --> 0:00:50.400 in Tel Aviv. 0:00:50.960 --> 0:00:54.000 In the fine print of the deal, there is an 0:00:54.000 --> 0:01:00.320 opportunity for additional days of so called pause. Israel said 0:01:00.360 --> 0:01:04.080 that for every ten additional hostages, they would be willing 0:01:04.120 --> 0:01:07.319 to add an additional day of pause in the war. 0:01:08.000 --> 0:01:11.520 But at the same time, Benjamin Natanyahu, the Prime Minister, 0:01:12.040 --> 0:01:14.280 has been very clear to say this does not mean 0:01:14.319 --> 0:01:17.160 the end of the conflict, and that their original goals 0:01:17.200 --> 0:01:22.640 to eradicate Harmas and deradicalize Gaza, etc. Is still very 0:01:22.680 --> 0:01:23.560 much the state today. 0:01:23.760 --> 0:01:26.600 Bloomberg Sigmon Mark says the pause is expected to begin 0:01:26.760 --> 0:01:27.600 tomorrow morning. 0:01:27.959 --> 0:01:31.000 This temporary ceasefire was pushed for by the US and 0:01:31.080 --> 0:01:34.840 its allies. We get more from Bloomberg political contributor Genie 0:01:34.880 --> 0:01:35.559 she and Zano. 0:01:35.920 --> 0:01:39.679 It is a big, big move forward for many people 0:01:39.760 --> 0:01:43.200 because it's really the first diplomatic breakthrough we've seen since 0:01:43.240 --> 0:01:46.240 the war began after the October seventh attack. But it 0:01:46.319 --> 0:01:50.640 comes with so much trepidation and so many questions. This 0:01:50.680 --> 0:01:54.240 is not a ceasefire, it's a pause. It comes also 0:01:54.400 --> 0:01:58.080 as a result of enormous pressure both inside Israel and 0:01:58.200 --> 0:02:03.040 internationally that the Israeli government has been feeling, particularly from 0:02:03.080 --> 0:02:06.520 the relatives of these two hundred and thirty six hostages. 0:02:06.800 --> 0:02:10.399 Bloomberg contributor Genie she and Zano says three Americans will 0:02:10.400 --> 0:02:12.720 be among the hostages, leaving Gaza. Amy. 0:02:12.760 --> 0:02:15.480 Another major story we're following this morning is the return 0:02:15.600 --> 0:02:19.360 of Sam Aldman to open Ai, just days after he 0:02:19.480 --> 0:02:22.959 was fired then hired by Microsoft. Sam Aldman is back 0:02:23.000 --> 0:02:26.120 as CEO and the board at open Ai is in 0:02:26.200 --> 0:02:29.120 for an overhaul. We get more from Bloomberg Intelligence analyst 0:02:29.160 --> 0:02:30.000 Matthew Bloxham. 0:02:30.360 --> 0:02:33.640 I kind of think the board were backed into a corner, 0:02:33.680 --> 0:02:36.040 and you know, I think they were just seeing the 0:02:36.160 --> 0:02:39.840 company unravel, so I don't think they had really any choice. 0:02:39.880 --> 0:02:42.440 I think from Nah, the big questions is going to be, ok, 0:02:43.040 --> 0:02:46.360 what's the detail? What beyond a new board that looks 0:02:46.400 --> 0:02:48.800 more supportive of sam Altman, are they going to be 0:02:48.840 --> 0:02:51.920 more profound changes to the structure of the company. What 0:02:51.960 --> 0:02:55.240 does this mean for the possible IPO? How they're going 0:02:55.280 --> 0:02:59.040 to kind of commercialize things like chat GPT more effectively 0:02:59.720 --> 0:03:01.800 to take advantage of the opportunity this day. 0:03:02.440 --> 0:03:05.200 Matt Bloxon with Bloomberg Intelligence says the initial board will 0:03:05.200 --> 0:03:08.359 be led by Brett Taylor, a former co CEO of Salesforce. 0:03:08.680 --> 0:03:12.840 Other directors include Quorra CEO, Adam DiAngelo, and Larry Summers, 0:03:12.880 --> 0:03:16.560 the former Treasury secretary and a paid contributor to Bloomberg and. 0:03:16.560 --> 0:03:19.840 Sources say, Microsoft is also likely to get representation on 0:03:19.960 --> 0:03:23.120 the new board, certainly as an observer, possibly with one 0:03:23.240 --> 0:03:26.440 or more board seats. In a post on x Microsoft 0:03:26.520 --> 0:03:30.400 CEO Satya Nadella praised the changes at OpenAI, calling them 0:03:30.480 --> 0:03:33.240 quote a first essential step on a path to a 0:03:33.320 --> 0:03:36.400 more stable, well informed, and effective governance. 0:03:36.640 --> 0:03:39.400 On a very busy morning, Amy, we're also following market 0:03:39.440 --> 0:03:42.440 reaction to one of the most highly anticipated earnings reports. 0:03:43.040 --> 0:03:46.640 Shares of Nvidia are down nearly one percent in early trading. 0:03:46.640 --> 0:03:50.160 That's despite an earning's blowout that went past analyst estimates. 0:03:50.280 --> 0:03:52.520 We get more on that from Bloomberg technology reporter at 0:03:52.600 --> 0:03:53.880 Ludlow in San Francisco. 0:03:54.240 --> 0:03:56.640 We go to the outlook for the fiscal fourth quarter 0:03:57.120 --> 0:03:59.760 sales would be twenty billion dollars plus or minus two. 0:04:00.800 --> 0:04:03.000 And while that's a really strong outlook, there was some 0:04:03.040 --> 0:04:07.360 commentary from Nvidia that they expect sales or shipments of 0:04:07.480 --> 0:04:10.760 GPUs to China to drop in the current period or 0:04:10.760 --> 0:04:14.320 the fiscal fourth quarter, as a direct result of the 0:04:14.400 --> 0:04:18.320 expanded US technology export curbs. What we're talking about is 0:04:18.360 --> 0:04:22.200 in Vidia's inability to ship the cutting edge GPUs to 0:04:22.320 --> 0:04:25.200 the Chinese market. But they were very clear that will 0:04:25.240 --> 0:04:28.520 be offset by demand from other markets around the world. 0:04:28.839 --> 0:04:32.080 Bloomberg's Ed Ludlow says another reason behind in Nvidia's drop 0:04:32.200 --> 0:04:34.520 was its run up this year, and video was already 0:04:34.600 --> 0:04:36.880 higher by more than two hundred and forty percent. 0:04:37.440 --> 0:04:40.000 And a big name in the cryptocurrency space is taking 0:04:40.040 --> 0:04:44.039 a legal fall. Binance, the world's largest crypto exchange, has 0:04:44.080 --> 0:04:48.120 pleaded guilty to anti money laundering and sanctions violations. Attorney 0:04:48.200 --> 0:04:52.640 General Merrick Garland says Binance failed to stop suspicious transactions 0:04:52.680 --> 0:04:57.040 with terror groups including Hamas, and violated several laws, including 0:04:57.080 --> 0:04:58.719 the Bank Secrecy Act. 0:04:59.000 --> 0:05:02.359 These laws and were that our financial institutions are not 0:05:02.560 --> 0:05:08.400 available to designated terrorist organizations, drug traffickers, and sanctioned nation 0:05:08.560 --> 0:05:12.440 states that threaten public safety and our national security. 0:05:12.800 --> 0:05:15.840 Attorney General Garland says Finance will pay four point three 0:05:15.920 --> 0:05:19.760 billion dollars under the deal and its CEO, CZZL, will 0:05:19.800 --> 0:05:22.520 step down and pay a fifty million dollar fine. Sal 0:05:22.560 --> 0:05:24.640 could face up to ten years in prison, but is 0:05:24.720 --> 0:05:27.000 expected to serve no more than eighteen months. 0:05:27.160 --> 0:05:29.600 And on the economic front, Amy investors will have to 0:05:29.680 --> 0:05:33.000 navigate a number of reports this morning, almost all of 0:05:33.120 --> 0:05:37.360 Thursday and Friday's numbers have been compressed into today, so 0:05:37.440 --> 0:05:39.840 let's get a preview now from Bloomberg's Michael McKay. 0:05:40.240 --> 0:05:43.760 The Marquee release is initial jobless claims. Wall Street wants 0:05:43.800 --> 0:05:46.320 to know if last week's surprise jumped to two hundred 0:05:46.320 --> 0:05:49.040 and thirty one thousand was a one off or assigned. 0:05:49.040 --> 0:05:52.440 The labor market is starting to cool significantly October durable 0:05:52.440 --> 0:05:55.239 goods orders. Meanwhile, we'll offer the first clues to business 0:05:55.240 --> 0:05:58.360 spending plans in the fourth quarter. A drop in Boeing 0:05:58.440 --> 0:06:01.120 jet sales may depress the over were all headline number, 0:06:01.360 --> 0:06:04.839 while capital goods orders, a proxy for business spending in GDP, 0:06:05.320 --> 0:06:08.799 are forecast to eke out only a marginal gain. Finally, 0:06:08.880 --> 0:06:12.159 the University of Michigan's final reading of consumer sentiment for 0:06:12.360 --> 0:06:17.080 November may influence some investors views of holiday season consumer spending. 0:06:17.120 --> 0:06:22.119 Michael McKee, Bloomberg Radio. 0:06:23.040 --> 0:06:24.960 All right, thank you, Nathan. Time now for a look 0:06:24.960 --> 0:06:27.480 at some of the other stories making news around the world, 0:06:27.680 --> 0:06:30.440 and for that were joined by Bloomberg's of John Tucker, Good. 0:06:30.360 --> 0:06:34.680 Morning John, Good morning Amy. The Pentagon confirming it conducted 0:06:34.720 --> 0:06:38.599 an air strike against Iranian backed militants operating out of Iraq. 0:06:38.880 --> 0:06:41.160 Let's get more of the story this morning from Bloomberg's 0:06:41.279 --> 0:06:41.800 Ed Baxter. 0:06:42.760 --> 0:06:45.479 The Pentagon says it was in response to several short 0:06:45.560 --> 0:06:48.920 range missile attacks. Pentagon spokeswoman Sabrina. 0:06:48.560 --> 0:06:52.240 Sang Immediately following the attack, a US military AC one 0:06:52.400 --> 0:06:55.719 three aircraft in the area conducted a self defense strike 0:06:55.760 --> 0:06:59.039 against an Iranian backed militia vehicle and the number of 0:06:59.080 --> 0:07:03.080 Iranian backed us A personnel involved in this attack. This 0:07:03.120 --> 0:07:06.240 self defense strike resulted in some hostile fatalities. 0:07:06.480 --> 0:07:09.880 Seeh says some US service members were injured in the attack. 0:07:10.200 --> 0:07:14.160 She also says the US conducted three additional strikes in Syria. 0:07:14.680 --> 0:07:16.200 At Baxter Bloomberg. 0:07:15.880 --> 0:07:19.040 Radio, Florida Governor Ron de Santis secure the endorsement of 0:07:19.280 --> 0:07:24.280 influential Iowa conservative Bob vnder Platz. Vander Platz backing is 0:07:24.280 --> 0:07:27.040 the second major endorsement for DeSantis in Iowa this month, 0:07:27.080 --> 0:07:30.520 following Governor Kim Reynolds. Both vnder Plants and Renolds are 0:07:30.640 --> 0:07:34.880 influential among evangelical voters, a sizeable bloc of the state. 0:07:35.280 --> 0:07:38.240 DeSantis is making a make or break prush shit in 0:07:38.320 --> 0:07:41.280 that state, banking on a strong showing they can give 0:07:41.360 --> 0:07:44.200 him momentum to stay in the race pull show DeSantis 0:07:44.280 --> 0:07:48.160 trailing Donald Trump by over forty five points. For those 0:07:48.280 --> 0:07:52.000 early holiday travelers, leaving before dawn to avoid the rush 0:07:52.440 --> 0:07:54.800 may work in some parts of the nation, but not 0:07:54.920 --> 0:07:58.480 in other parts. Bloomberg meteorologist Rod Carolyn. 0:07:58.960 --> 0:08:01.840 Most of the country looking good for travel on this Wednesday, 0:08:01.840 --> 0:08:04.720 ahead of the big Thanksgiving Day holiday. We have problems though, 0:08:04.760 --> 0:08:07.360 in the eastern United States with rain from North Florida 0:08:07.400 --> 0:08:10.760 along the coastal Carolinas and into parts of New England, 0:08:10.840 --> 0:08:12.920 especially northern New England, where we'll be dealing with some 0:08:13.040 --> 0:08:16.880 snow today. The Pacific Northwest will also deal with precipitation rain, 0:08:17.040 --> 0:08:18.720 likely at the lower elevations. 0:08:18.200 --> 0:08:19.240 With snow in the mountains. 0:08:19.440 --> 0:08:21.840 Today is one of the busiest travel days of the year. 0:08:22.200 --> 0:08:25.000 A Florida judge who's ruled Tesla's trial over at twenty 0:08:25.080 --> 0:08:29.040 nineteen fatal crash blamed on autopilot will include a claim 0:08:29.120 --> 0:08:32.680 against the company for punitive damages. The judge at Palm 0:08:32.760 --> 0:08:36.840 Beach County cited evidence that shows CEO Elon Muskin staff 0:08:36.840 --> 0:08:41.760 engineers knew its driver assistance system was defective. Global News 0:08:41.800 --> 0:08:44.080 twenty four hours a day and whenever you want it 0:08:44.120 --> 0:08:47.560 with Bloomberg News. Now I'm John Tucker and this is 0:08:47.600 --> 0:08:48.480 Bloomberg Amy. 0:08:48.640 --> 0:08:55.200 All right, thank you, John. Time enough for our Bloomberg 0:08:55.200 --> 0:08:58.440 Sports update. For that, we bring in John stash Hour Emmy. 0:08:58.520 --> 0:09:01.520 Only two weeks to go in the college football regular season, 0:09:01.640 --> 0:09:05.600 and the College Football Playoff Committee out with its latest 0:09:05.640 --> 0:09:08.800 poll last night. Georgia remains number one, with Ohio State 0:09:08.920 --> 0:09:13.040 second Michigan third. Those two teams play each other Saturday 0:09:13.040 --> 0:09:16.360 in ann Arbor. A change at the four spot, Washington 0:09:16.440 --> 0:09:19.839 moving ahead of Florida State, the Committee denying that it's 0:09:19.920 --> 0:09:22.520 due to Florida State having just lost its quarterback Jordan 0:09:22.600 --> 0:09:26.280 Travis to a season ending injury. Oregon is currently sixth, 0:09:26.320 --> 0:09:30.040 will play Oregon State on Friday, Texas is seventh, the 0:09:30.120 --> 0:09:33.920 long Orange Plate Texas Tech on Friday, and Alabama is eighth, 0:09:34.000 --> 0:09:36.840 and the Crimston Tide play the Iron Bowl Game against 0:09:36.840 --> 0:09:40.120 Auburn on Saturday. College basketball, a lot of the top 0:09:40.120 --> 0:09:40.959 teams of the nation have. 0:09:40.960 --> 0:09:41.720 Gone to MAUI. 0:09:42.160 --> 0:09:45.520 Number one Kansas lost to fourth rank Marquette seventy three 0:09:45.520 --> 0:09:49.280 point fifty nine. Second ranked Purdue a seventy one sixty 0:09:49.320 --> 0:09:53.240 seven victory over seventh ranked Tennessee in the NBA A 0:09:53.320 --> 0:09:57.800 game between Indiana and Atlanta, and both teams scored over 0:09:57.840 --> 0:10:00.319 one hundred and fifty points. That's only the seventh time 0:10:00.320 --> 0:10:03.120 that's ever happened in NBA history. The Pacers beat the 0:10:03.120 --> 0:10:06.480 Hawks one fifty seven to one fifty two. Both teams 0:10:06.760 --> 0:10:10.200 shot sixty percent from the field. San Diego Padres have 0:10:10.360 --> 0:10:13.240 named Mike Schilt their new manager. He managed the Cardinals 0:10:13.240 --> 0:10:15.880 for four years, got them into the playoffs three times. 0:10:16.040 --> 0:10:19.319 He replaces Bob Melvin, who left the Padres to go 0:10:19.400 --> 0:10:22.000 to the Giants. Willie Hernandez, who won the Cy Young 0:10:22.040 --> 0:10:24.880 Award and the MVP in nineteen eighty four pitching for 0:10:24.920 --> 0:10:28.120 the Tigers, has passed away at sixty nine. Johns Dashlee 0:10:28.200 --> 0:10:29.400 our Bloomberg Sport. 0:10:32.280 --> 0:10:35.280 From coast to coast, from New York to San Francisco, 0:10:35.600 --> 0:10:40.680 Boston to Washington, DC, nationwide on SYRIASXAM, the Bloomberg Business 0:10:40.679 --> 0:10:44.480 app in Bloomberg dot com. This is Bloomberg Daybreak. 0:10:45.760 --> 0:10:49.160 Good morning, I'm Nathan Hager. The relentless war in Gaza 0:10:49.200 --> 0:10:53.440 since Thomas's October seventh attack on Israel looks like it's 0:10:53.480 --> 0:10:56.480 taking a pause. Both sides have reached a deal that 0:10:56.520 --> 0:11:01.319 will see Hamas release dozens of hostages in exchange Palestinian prisoners. 0:11:01.320 --> 0:11:03.240 And for more on this agreement, we are joined by 0:11:03.240 --> 0:11:06.720 Bloomberg new senior editor Bill Ferries. Bill, thanks for being 0:11:06.760 --> 0:11:09.200 with us. Let's start off first with the terms of 0:11:09.240 --> 0:11:12.840 this deal. What exactly have Israel and Hamas agreed to 0:11:12.920 --> 0:11:14.400 after these days of talks. 0:11:15.960 --> 0:11:18.280 Well, what we know from both sides and from the 0:11:18.360 --> 0:11:21.840 Qataris who have been really kind of leading the mediation 0:11:21.960 --> 0:11:25.680 efforts here is that within the next less than twenty 0:11:25.720 --> 0:11:29.280 four hours now at this point, what we call a 0:11:29.360 --> 0:11:33.560 humanitarian pause and the conflict will go into effect. Hamas 0:11:33.640 --> 0:11:37.800 has agreed to free initially fifty hostages. We expect these 0:11:37.840 --> 0:11:40.880 to be women and children who were taken when they 0:11:41.280 --> 0:11:45.920 stormed into Israel on October seventh. In return, Israel we'll 0:11:45.960 --> 0:11:51.000 begin looking at releasing perhaps dozens of Palestinian prisoners, also 0:11:51.200 --> 0:11:54.319 likely to be women and children. But the interesting thing 0:11:54.360 --> 0:11:56.800 about this is it's a four day pause, but there's 0:11:56.840 --> 0:12:00.720 a potential for an extension here if Hamas agrees to 0:12:00.840 --> 0:12:05.840 release more hostages. So basically, for every additional ten hostages 0:12:06.360 --> 0:12:10.400 the Hamas releases, that extends the pause by a day. Remember, 0:12:11.360 --> 0:12:14.520 Israel estimates about two hundred and forty people were taken 0:12:14.559 --> 0:12:18.240 hostage during those October seventh attacks, So this has the 0:12:18.280 --> 0:12:21.760 potential to extend the deal quite a bit. In return, 0:12:22.200 --> 0:12:25.720 as I said, Hamas gets some prisoner releases from Israeli prisons. 0:12:26.240 --> 0:12:30.760 They also get an end to over flights and bombing 0:12:30.840 --> 0:12:37.800 air strikes of Gaza in that time, and really the 0:12:37.960 --> 0:12:41.160 chance to get a lot more aid flowing in in 0:12:41.240 --> 0:12:44.760 terms of medical supplies and fuel for nonprofit groups that 0:12:44.800 --> 0:12:48.800 do humanitarian work. So all sides I think had an 0:12:48.880 --> 0:12:52.400 interest at this point in getting reaching a deal. There 0:12:52.400 --> 0:12:54.120 were a lot of hiccups in the process, but it 0:12:54.160 --> 0:12:57.120 looks like it should be going into effect within the 0:12:57.160 --> 0:12:57.680 coming day. 0:12:58.640 --> 0:13:01.880 Let's talk about some of those heys, because, as you know, Bill, 0:13:02.040 --> 0:13:06.360 Israeli Prime Minister Benjamin Netanyahu had said as these talks 0:13:06.360 --> 0:13:08.640 were underway that he wouldn't agree to any pause at 0:13:08.640 --> 0:13:11.880 all unless all the hostages were freed. So what did 0:13:11.920 --> 0:13:14.720 it take to get at least this kind of a 0:13:14.800 --> 0:13:17.839 deal done. The possibility that we could see more pauses, 0:13:18.240 --> 0:13:22.560 and this potential for a trickle of hostages to be 0:13:22.640 --> 0:13:23.640 released over time. 0:13:25.000 --> 0:13:26.680 Well, you're right, it wasn't clear at all that a 0:13:26.720 --> 0:13:30.440 deal would ever happen. Qatar got involved soon after those 0:13:30.440 --> 0:13:34.600 October seventh attacks and started trying to find a way 0:13:34.640 --> 0:13:38.559 to focus really on hostages and getting them back the US. 0:13:38.600 --> 0:13:42.959 The Biden administration was deeply involved in these talks as well, 0:13:43.400 --> 0:13:45.680 and you're right they did. There was this push to 0:13:45.760 --> 0:13:49.280 have all hostages released at once that didn't seem to 0:13:49.320 --> 0:13:52.640 be getting much traction, and Hamas came back with an 0:13:52.640 --> 0:13:57.400 offer of fifty fifty hostages in one trench and then 0:13:57.600 --> 0:14:00.400 put potentially more in the coming days. What we know 0:14:00.559 --> 0:14:03.600 is that the leader of Katar continued to stay very 0:14:03.640 --> 0:14:08.440 engaged in this and we uh, what we what we 0:14:08.559 --> 0:14:14.920 ended up seeing was was really in agreement to kind 0:14:14.960 --> 0:14:18.920 of kind of bridge that divide with the fifty. President 0:14:18.960 --> 0:14:22.800 Biden had had a conversation with President Prime Minister Yahoo 0:14:22.800 --> 0:14:26.800 at one point, and they really felt like this was 0:14:26.880 --> 0:14:29.240 probably the best deal they could get for now. The 0:14:29.360 --> 0:14:32.080 US was really encouraged by the early release of a 0:14:32.120 --> 0:14:35.840 couple Americans who were taken in the October seventh grade 0:14:36.280 --> 0:14:38.720 and uh, and they basically built on that. So they 0:14:38.760 --> 0:14:41.920 went from an initial request of fifty to to what 0:14:42.040 --> 0:14:45.240 could be dozens more than that. We kind of have 0:14:45.320 --> 0:14:47.800 to see where it goes. But the priority was always 0:14:47.800 --> 0:14:52.280 on initially on women and children and the elderly civilians, 0:14:52.320 --> 0:14:56.160 and then looking more at uh at soldiers from both sides, 0:14:56.200 --> 0:14:58.960 and I think that's where talks on further releases will 0:14:58.960 --> 0:14:59.880 get more complicated. 0:15:00.680 --> 0:15:04.640 And even as we see this deal get implemented, as 0:15:04.680 --> 0:15:08.200 you say, possibly as soon as after tomorrow, Prime Minister 0:15:08.320 --> 0:15:11.160 Natan Yahoo is saying that this won't mean that the 0:15:11.200 --> 0:15:14.240 war itself is coming to an end. What should we 0:15:14.320 --> 0:15:18.080 expect when it comes to the fighting and the progress 0:15:18.160 --> 0:15:22.520 that Israel wants to make against Thamas once this potentially 0:15:22.600 --> 0:15:24.600 initial pause takes effect. 0:15:25.240 --> 0:15:27.120 Yeah, I mean, I think it's important to note that 0:15:27.160 --> 0:15:30.240 all sides are calling this a pause. I think I've 0:15:30.280 --> 0:15:33.000 seen the word truth, so temporary truth, things like that. 0:15:33.440 --> 0:15:36.080 No one is calling this an end to the conflict. 0:15:36.360 --> 0:15:40.080 Before they voted to accept this agreement, they've said that 0:15:40.400 --> 0:15:42.480 the war will continue, they can they want to go 0:15:42.560 --> 0:15:46.920 after eliminating Hamas and returning all the hostages, and they said, 0:15:46.920 --> 0:15:49.120 you know, when this truce ends, they will they will 0:15:49.120 --> 0:15:52.280 go back in the fighting will zoom. So it's an important, 0:15:52.280 --> 0:15:54.680 significant step here, but it's not the end of the 0:15:54.680 --> 0:15:55.480 conflict as we. 0:15:55.440 --> 0:15:56.480 Know in Okay. 0:15:56.520 --> 0:16:00.280 Bill Ferries, Bloomberg News senior editor, joining us this morning 0:16:00.440 --> 0:16:03.680 after we learn that a deal has been struck now 0:16:03.720 --> 0:16:08.080 between Israel and Hamas to pause the fighting in exchange 0:16:08.320 --> 0:16:13.040 for hostage releases at least some of the hostages initially 0:16:13.240 --> 0:16:17.280 being released from Gaza. Now we want to turn to 0:16:17.920 --> 0:16:21.960 the latest deal at open Ai. This saga that began 0:16:22.240 --> 0:16:28.000 last Friday may be over after intense pressure from investors. 0:16:28.360 --> 0:16:32.000 Sam Altman is returning as the CEO of the chat 0:16:32.040 --> 0:16:35.840 GPT parent company, and the board at OpenAI looks like 0:16:35.880 --> 0:16:38.600 it is about to go through a serious overhaul. Let's 0:16:38.600 --> 0:16:41.640 bring in Alex Web for more on this story. Covers 0:16:41.680 --> 0:16:44.280 tech for us for Bloomberg News and has been following 0:16:44.320 --> 0:16:49.160 this since the sudden ouster last Friday and now the 0:16:49.240 --> 0:16:50.040 sudden return. 0:16:50.800 --> 0:16:53.000 Help us make sense of this, Alex. 0:16:53.240 --> 0:16:55.560 I mean, it's a big victory for Microsoft. Essentially, the 0:16:55.600 --> 0:16:58.080 thing that appears to have happened, and this is what's 0:16:58.120 --> 0:17:01.200 on the reporting suggests last week because that one of 0:17:01.240 --> 0:17:04.320 the reasons Sam Worton was ousted was concerned that he 0:17:04.440 --> 0:17:08.920 was prioritizing the commercial impulses of the company over what 0:17:09.119 --> 0:17:13.320 actually is mandate, namely to improve and this genuinely is 0:17:13.359 --> 0:17:15.159 the wording. It is to work for the benefit of 0:17:15.160 --> 0:17:20.040 all humanity. Now Microsoft is almost certainly going to be 0:17:20.080 --> 0:17:23.400 getting greater oversight, greater sway at a board level over 0:17:23.440 --> 0:17:26.320 what happens at OpenAI, if the company is therefore going 0:17:26.359 --> 0:17:28.199 to be run there with so slightly more in the 0:17:28.200 --> 0:17:32.760 interest of Microsoft, not necessarily in the interest of all humanity. 0:17:33.680 --> 0:17:37.000 The three members have been appointed to the board Adam DiAngelo, 0:17:37.040 --> 0:17:39.280 the See of Quorra, who was already on there. The 0:17:39.320 --> 0:17:41.680 new ones are going to be Larry Summers, of course, 0:17:41.720 --> 0:17:46.520 former Treasury Sector under Bill Clinton, and Brett Taylor, the 0:17:46.520 --> 0:17:48.520 former co CEO of Salesforce. They are going to be 0:17:48.520 --> 0:17:52.760 as many as nine additional board members. The expectation is 0:17:52.800 --> 0:17:56.480 perhaps two of those could be representatives of Microsoft, and 0:17:56.560 --> 0:17:59.280 Altman himself could well rejoin the board. 0:17:59.320 --> 0:18:02.920 And we should, in the interest of transparency, that Larry Summers, 0:18:03.200 --> 0:18:05.920 along with joining the board at open Ai as a 0:18:05.960 --> 0:18:10.600 paid contributor to Bloomberg, with these additions, at least initial 0:18:10.640 --> 0:18:13.560 additions to the board Alex it sounds like that could 0:18:13.600 --> 0:18:16.959 be the bigger deal here. Than just simply the return 0:18:17.040 --> 0:18:18.960 of Sam Altman as the CEO. 0:18:20.000 --> 0:18:22.479 Yeah, the thing we'd heard on Monday from sat In Adella, 0:18:22.480 --> 0:18:25.639 the Microsoft CEO, in an interview Bloomberg Television. He had 0:18:25.640 --> 0:18:30.159 said he wanted improvements to governance at open AI. It 0:18:30.200 --> 0:18:32.920 seems as though the board composition was the sticking point 0:18:33.000 --> 0:18:35.200 and why it took a good few days to reach 0:18:35.200 --> 0:18:37.320 a resolution, given that we had heard as early as 0:18:37.400 --> 0:18:41.840 Sunday that there were moved from both sides to bring 0:18:41.920 --> 0:18:46.040 Sam Altman back into the fold. When Nadella says he 0:18:46.040 --> 0:18:50.240 wants improvements to governance, everybody more or less understood that 0:18:50.280 --> 0:18:52.520 to mean he wanted Microsoft to have better inside. Because 0:18:52.640 --> 0:18:55.399 this completely blindsided Microsoft is firing of Sam Mortman and 0:18:55.440 --> 0:18:59.840 subsequent departure of Greg Brockman, the president of the company. 0:19:00.800 --> 0:19:04.720 Microsoft had no forewarning of that. They learned it pretty 0:19:04.760 --> 0:19:06.480 much at the same time the rest of the world did. 0:19:07.040 --> 0:19:09.080 The understanding is it was maybe a few minutes before 0:19:09.119 --> 0:19:11.000 they put the press release out or the post on 0:19:11.000 --> 0:19:14.480 their website app. So you know, surprises for big businesses 0:19:14.560 --> 0:19:17.320 are not considered good and that's clearly something that Microsoft 0:19:17.359 --> 0:19:17.920 wanted to fix. 0:19:18.160 --> 0:19:22.960 To your point earlier about this signaling the idea that 0:19:24.440 --> 0:19:26.920 this could take the open AI in the direction of 0:19:27.520 --> 0:19:31.120 where Microsoft wants to go as opposed to the betterment 0:19:31.240 --> 0:19:34.240 of humanity. Talk a little bit more about what this 0:19:34.359 --> 0:19:38.040 could mean for open AI and the competition, this mass 0:19:38.080 --> 0:19:41.080 of competition that we're seeing between Microsoft and so many 0:19:41.119 --> 0:19:43.960 of the other players in the artificial intelligence space, what 0:19:44.040 --> 0:19:45.320 could this mean down the line. 0:19:45.760 --> 0:19:48.919 So there are basically four big players, certainly in the 0:19:48.920 --> 0:19:53.679 Western hemisphere in this in you know, advanced artificial intelligence research. 0:19:53.720 --> 0:19:56.080 There's deep Mind, which is now Google deep Mind. It 0:19:56.119 --> 0:19:58.639 is part of Google. There is Microsoft sort of Meta 0:19:58.760 --> 0:20:03.280 AI research clearly part of Meta. There is open ai, 0:20:03.359 --> 0:20:05.440 which is very closely aligned with Microsoft. And there is 0:20:05.480 --> 0:20:08.919 also an Anthropic which was founded by a bunch of 0:20:08.960 --> 0:20:14.120 departees from open ai a few years ago. Google, Microsoft, 0:20:14.160 --> 0:20:16.479 and Amazon are the ones really competing in the cloud. 0:20:16.560 --> 0:20:18.680 And at the moment, the real way to make money 0:20:18.680 --> 0:20:20.639 from AI is in the cloud. It is from not 0:20:20.640 --> 0:20:23.480 necessarily selling the AI services to companies to use. It's 0:20:23.520 --> 0:20:27.119 the processing power needed to run those AI services, and 0:20:27.119 --> 0:20:30.080 that's where the margin really is. Google, Microsoft hams and 0:20:30.119 --> 0:20:33.960 can compete very fiercely in that space. Microsoft has this 0:20:34.000 --> 0:20:36.600 huge benefit from the relationship with open Ai, but it 0:20:36.640 --> 0:20:39.640 does not technically own open Ai. And then the way 0:20:39.640 --> 0:20:42.919 that Google owns DeepMind. So that's really the lay of 0:20:42.920 --> 0:20:45.160 the land when it comes to the battlefield. This will 0:20:45.160 --> 0:20:48.760 help Microsoft potentially by hewing them more closely still to 0:20:48.840 --> 0:20:50.240 their long term business goals. 0:20:50.400 --> 0:20:52.960 Let's talk about the other ai story that everyone was 0:20:53.000 --> 0:20:55.679 waiting for even before last Friday. Of course, that's the 0:20:55.720 --> 0:20:59.919 earnings from Nvidia. Another is a solid quarter, but the 0:21:00.000 --> 0:21:03.879 the shares are dropping ever so slightly this morning. What's 0:21:04.000 --> 0:21:05.520 the disconnect? 0:21:06.240 --> 0:21:09.080 I mean, look, the expectations for this company are absolutely 0:21:09.280 --> 0:21:12.560 sky high, and there was heading into the numbers some 0:21:12.960 --> 0:21:15.840 expectation that essentially a beat is a meat, right, People 0:21:15.880 --> 0:21:19.040 were expecting them to beat expectations, and if they didn't 0:21:19.080 --> 0:21:21.679 completely blow expectations out of the water, then there might 0:21:21.720 --> 0:21:23.840 be a little bit of profit taking. That certainly looks 0:21:23.920 --> 0:21:26.640 like what is happening now that the shares have been 0:21:26.640 --> 0:21:28.840 on such a tear in recent months, there's an opportunity 0:21:28.880 --> 0:21:31.199 for you know, some investors to maybe just cash in 0:21:31.240 --> 0:21:33.119 a little bit on that. It doesn't appear to be 0:21:33.119 --> 0:21:36.120 anything particularly catastrophic. There's still a lot of growth left 0:21:36.119 --> 0:21:39.359 in this company. The only question mark hetting forward is 0:21:39.760 --> 0:21:42.720 what is the exposure to China? They want more exposure, 0:21:42.800 --> 0:21:44.920 but it looks as though the government is cracking down 0:21:44.920 --> 0:21:47.080 on some of that. How big an impact. 0:21:46.840 --> 0:21:47.399 Will that have? 0:21:50.520 --> 0:21:53.600 This is Bloomberg Daybreak Today, your morning brief on the 0:21:53.640 --> 0:21:57.120 story's making news from Wall Street to Washington and beyond. 0:21:57.160 --> 0:21:59.879 Look for us on your podcast fed by six a 0:22:00.280 --> 0:22:04.679