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Speaker 1: Good morning.

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Speaker 2: I'm Nathan Hager and I'm Amy Morris. Here are the

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Speaker 2: stories we're following today.

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Speaker 3: We're going to begin with the deal in the Middle East.

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Speaker 3: Israel and Hamas have come to an agreement that we'll

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Speaker 3: see dozens of hostages freed from Gaza in return for

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Speaker 3: a four day pause in the fighting and the release

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Speaker 3: of Palestinian prisoners. Bloomberg Simon Marx begins our team coverage

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Speaker 3: in Tel Aviv.

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Speaker 4: In the fine print of the deal, there is an

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Speaker 4: opportunity for additional days of so called pause. Israel have

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Speaker 4: said that for every ten additional hostages they would be

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Speaker 4: willing to add.

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Speaker 5: An additional day of pause in the war.

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Speaker 4: But at the same time, Benjamin Natanyahu, the Prime Minister,

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Speaker 4: has been very clear to say this does not mean

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Speaker 4: the end of the conflict and that their original goals

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Speaker 4: to eradicate Harmas and deradicalize Gaza, etc. Is still very

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Speaker 4: much the state to day.

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Speaker 3: Bloomberg Simon Mark says the pause is expected to begin

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Speaker 3: tomorrow morning.

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Speaker 2: This temporary ceasefire was pushed for by the US and

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Speaker 2: its allies. We get more from Bloomberg political contributor Genie

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Speaker 2: she and Zano It is a big.

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Speaker 6: Big move forward for many people, because it's really the

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Speaker 6: first diplomatic breakthrough we've seen since the war began after

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Speaker 6: the October seventh attack. But it comes with so much

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Speaker 6: trepidation and so many questions. This is not a ceasefire,

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Speaker 6: it's a pause. It comes also as a result of

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Speaker 6: enormous pressure both inside Israel and internationally that the Israeli

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Speaker 6: government has been feeling, particularly from the relatives of these

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Speaker 6: two hundred and thirty six hostages.

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Speaker 2: Bloomberg contributor Genie she and Zano says three Americans will

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Speaker 2: be among the hostages leaving Gaza and Amy.

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Speaker 3: Another major story we're following this morning is the return

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Speaker 3: of sam Aldman to open Ai, just days after he

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Speaker 3: was fired then hired by Microsoft. Sam Aldman is back

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Speaker 3: as CEO, and the board at OpenAI is in for

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Speaker 3: and over. We get more from Bloomberg intelligence analyst Matthew Bloxham.

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Speaker 7: I kind of think that the board were backed into

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Speaker 7: a corner, and you know, I think they were just

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Speaker 7: seeing the company unravel, so I don't think they had

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Speaker 7: really any choice. I think from Nah, the big questions

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Speaker 7: is going to be, Okay, what's the detail, what you know,

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Speaker 7: beyond a new board that looks more supportive of Samltman,

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Speaker 7: Are they going to be more profound changes to the

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Speaker 7: structure of the company. What does this mean for the

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Speaker 7: possible IPO, How they're going to kind of commercialize things

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Speaker 7: like chat GPT more effectively, to kind of take advantage

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Speaker 7: of the opportunity that.

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Speaker 3: Matt Bloxam with Bloomberg Intelligence says. The initial board will

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Speaker 3: be led by Brett Taylor, a former co CEO of Salesforce.

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Speaker 3: Other directors include Quorra CEO, Adam DiAngelo, and Larry Summers,

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Speaker 3: the former Treasury secretary and a paid contributor to Bloomberg and.

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Speaker 5: Source of say.

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Speaker 2: Microsoft is also likely to get representation on the new board,

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Speaker 2: certainly as an observer, possibly with one or more board seats.

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Speaker 2: In a post on x Microsoft seat O Satya Nadella

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Speaker 2: praised the changes at open Ai, calling them quote a

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Speaker 2: first essential step on a path to a more stable,

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Speaker 2: well informed, and effective governance.

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Speaker 3: On a very busy morning, Amy, We're also following market

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Speaker 3: reaction to one of the most highly anticipated earnings reports.

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Speaker 3: Shares of Nvidia are down nearly one percent in early training.

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Speaker 3: That's despite an earnings blowout that went past analyst estimates.

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Speaker 3: We got more on that from Bloomberg technology reporter at

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Speaker 3: Ludlow in San Francisco.

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Speaker 8: We go to the outlook for the fiscal fourth quarter,

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Speaker 8: sales would be twenty billion dollars plus or minus two percent.

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Speaker 8: And while that's a really strong outlook, there was some

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Speaker 8: commentary from Nvidia that they expect sales or shipments of

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Speaker 8: GPUs to China to drop in the current period or

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Speaker 8: the fiscal fourth quarter, as a direct result of the

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Speaker 8: expanded US technology export curves. What we're talking about is

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Speaker 8: in Vidia's inability to ship the cutting edge GPUs to

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Speaker 8: the Chinese market, but they were very clear that will

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Speaker 8: be offset by demand from other markets around the world.

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Speaker 3: Bloomberg's Ed Ludlow says another reason behind in Vidia's drop

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Speaker 3: was its run up this year, and video was already

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Speaker 3: higher by more than two hundred and forty percent.

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Speaker 2: And a big name in the cryptocurrency space is taking

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Speaker 2: a legal fall. Binance, the world's largest crypto exchange, has

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Speaker 2: pleaded guilty to anti money laundering and sanctions violations. Attorney

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Speaker 2: General Merrit Garland says Binance failed to stop suspicious transactions

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Speaker 2: with terror groups, including Hamas and violated several laws, including

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Speaker 2: the Bank Secrecy Act.

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Speaker 9: These laws ensure that our financial institutions are not available

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Speaker 9: to designated terrorist organizations, drug traffickers, and sanctioned nation states

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Speaker 9: that threaten public safety and our national security.

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Speaker 2: Attorney General Garland says Binance will pay four point three

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Speaker 2: billion dollars under the deal, and its CEO CZZL will

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Speaker 2: step down and pay a fifty million dollar fine. Sal

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Speaker 2: could face up to ten years in prison, but is

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Speaker 2: expected to serve no more than eighteen months.

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Speaker 3: Months And on the economic front, amy investors will have

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Speaker 3: to navigate a number of reports this morning. Almost all

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Speaker 3: of Thursday and Friday's numbers have been compressed into today,

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Speaker 3: so let's get a preview now from Bloomberg's Michael McKay.

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Speaker 10: The Marquee release is initial jobless claims. Wall Street wants

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Speaker 10: to know if last week's surprise jumped to two hundred

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Speaker 10: and thirty one thousand was a one off or a

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Speaker 10: sign the labor market is starting to cool significantly October

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Speaker 10: durable goods orders. Meanwhile, we'll offer the first clues to

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Speaker 10: business spending plans in the fourth quarter. A drop in

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Speaker 10: Boeing jet sales may depress the overall headline number, while

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Speaker 10: capital goods orders, a proxy for business spending in GDP,

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Speaker 10: are forecast to eke out only a marginal gain. Finally,

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Speaker 10: the University of Michigan's final reading of consumer sentiment for

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Speaker 10: November may influence some investors' views of holiday season consumer spending.

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Speaker 10: Michael McKee, Bloomberg Radio.

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Speaker 2: All right, thank you, Nathan. Time now for a look

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Speaker 2: at some of the other stories making news around the world,

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Speaker 2: and for that were joined by Bloomberg's of John Tucker, Good.

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Speaker 11: Morning John, and Good Morning Amy. The Pentagon confirming it

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Speaker 11: conducted an air strike against Iranian backed militants operating out

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Speaker 11: of Iraq. Let's get more of this story this morning

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Speaker 11: from Bloomberg's Ed Baxter.

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Speaker 12: The Pentagon says it was in response to several short

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Speaker 12: range missile attacks, Pentagon spokeswoman Sabrina.

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Speaker 13: Sangh Immediately following the attack, a US military AC one

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Speaker 13: thirty aircraft in the area conducted a self defense strike

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Speaker 13: against an Iranian backed militia vehicle and the number of

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Speaker 13: Iranian backed militia personnel involved in this attack. This self

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Speaker 13: defense strike resulted in some hostile fatalities.

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Speaker 12: Singh says some US service members were injured in the attack.

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Speaker 12: She also says the US conducted three additional strikes in Syria.

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Speaker 5: Ed Baxter Bloomberg.

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Speaker 11: Radio Florida Governor Ron de Santis secure the endorsement of

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Speaker 11: influential Iowa conservative Bob vander Platz. Vander Platz backing is

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Speaker 11: the second major endorsement for DeSantis and Iowa the month

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Speaker 11: following Governor Kim Reynolds. Both vent or Plants and Renolds

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Speaker 11: are influential among evangelical voters a sizeable bloc of the state.

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Speaker 11: Desantas is making a make or break prush shit in

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Speaker 11: that state, banking on a strong showing they can give

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Speaker 11: him momentum to stay in a race. Pulls showed Desanta's

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Speaker 11: trailing Donald Trump by over forty five points. For those

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Speaker 11: early holiday travelers, leaving before dawn to avoid the rush

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Speaker 11: may work in some parts of the nation, but not

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Speaker 11: in other parts. Bloomberg meteorologist Rod Carolyn.

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Speaker 14: Most of the country looking good for travel on this Wednesday,

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Speaker 14: ahead of the big Thanksgiving Day holiday. We have problems, though,

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Speaker 14: in the Eastern United States, with rain from North Florida

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Speaker 14: along the coastal Carolinas and into parts of New England,

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Speaker 14: especially northern New England, where we be dealing with some

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Speaker 14: snow today. The Pacific Northwest will also deal with precipitation rain,

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Speaker 14: likely at the lower elevations.

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Speaker 11: With snow in the mountains, today is one of the

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Speaker 11: busiest travel days of the year. A Florida judge has

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Speaker 11: ruled Tesla's trial over a twenty nineteen fatal crash blamed

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Speaker 11: of an autopilot will include acclaim against the company for

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Speaker 11: punitive damages. The judge at Palm Beach County cited evidence

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Speaker 11: that shows CEO Elon Moskin staff engineers knew its driver

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Speaker 11: assistance system was defective. Global News twenty four hours a

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Speaker 11: day and whenever you want it with Bloomberg News. Now,

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Speaker 11: I'm John Tucker and this is Bloomberg Gamy.

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Speaker 2: All right, thank you, John. Time enough for our Bloomberg

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Speaker 2: Sports update. For that, we bring in John stash Hour.

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Speaker 15: Aiming only two weeks to go in the college football

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Speaker 15: regular season, and the College Football Playoff Committee out with

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Speaker 15: its latest poll last night. Georgia remains number one, with

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Speaker 15: Ohio State second, Michigan third. Those two teams play each

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Speaker 15: other Saturday in ann Arbor. A change at the four

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Speaker 15: spot Washington moving ahead of Florida State, the Committee denying

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Speaker 15: that it's due to Florida State having just lost its

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Speaker 15: quarterback Jordan Travis to a season ending injury. Oregon is

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Speaker 15: currently sixth, will play Oregon State on Friday. Texas is seventh,

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Speaker 15: The Longhorns played Texas Tech on Friday, and Alabama is eighth,

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Speaker 15: and the Crimston Tide play the Iron Bowl Game against

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Speaker 15: Auburn on Saturday. College basketball, a lot of the top

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Speaker 15: teams of the nation have gone to Maui. Number one

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Speaker 15: Kansas lost to fourth rank Marquette seventy three p fifty nine,

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Speaker 15: second ranked Perdue a seventy one sixty seven victory over

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Speaker 15: seventh ranked Tennessee. In the NBA a game between Indiana

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Speaker 15: and Atlanta, and both teams scored over one hundred and

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Speaker 15: fifty points. That's only the seventh time that's ever happened

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Speaker 15: in NBA history. The Pacers beat the Hawks one fifty

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Speaker 15: seven to one fifty two. Both teams shot sixty percent

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Speaker 15: from the field. San Diego Padres have named Mike Schilt

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Speaker 15: their new manager. He managed the Cardinals for four years,

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Speaker 15: got them into the playoffs three times. He replaces Bob Melvin,

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Speaker 15: who left the Padres to go to the Giants. Willie Hernandez,

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Speaker 15: who won the Cy Young Award and the MVP in

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Speaker 15: nineteen eighty four pitching for the Tigers, has passed away.

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Speaker 15: Sixty nine Josh Dasha were Bloomberg Sports.

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Speaker 16: From coast to coast, from New York to San Francisco,

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Speaker 16: Boston to Washington, DC, nationwide on Syrias Exam, the Bloomberg

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Speaker 16: Business app, and Bloomberg dot Com.

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Speaker 5: This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.

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Speaker 3: The relentless war in Gaza, Sin Thomas's October seventh attack

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Speaker 3: on Israel looks like it's taking a pause. Both sides

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Speaker 3: have reached a deal that we'll see Hamas release dozens

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Speaker 3: of hostages in exchange for Palestinian prisoners. And for more

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Speaker 3: on this agreement, we are joined by Bloomberg News Senior

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Speaker 3: editor Bill Ferries. Bill, thanks for being with us. Let's

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Speaker 3: start off first with the terms.

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Speaker 5: Of this deal.

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Speaker 3: What exactly have Israel and Hamas agreed to after these

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Speaker 3: days of talks.

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Speaker 17: Well, what we know from both sides and from the

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Speaker 17: Kataris who have been really kind of leading the mediation

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Speaker 17: efforts here is that within the next less than twenty

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Speaker 17: four hours noway point, what we call a humanitarian pause

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Speaker 17: in the conflict will go into effect. Hamas has agreed

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Speaker 17: to free initially fifty hostages. We expect these to be

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Speaker 17: women and children who were taken when they stormed into

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Speaker 17: Israel on October seventh. In return, Israel will begin looking

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Speaker 17: at releasing perhaps dozens of Palestinian prisoners, also likely to

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Speaker 17: be women and children. But the interesting thing about this

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Speaker 17: is it's a four day pause, but there's a potential

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Speaker 17: for an extension here if Hamas agrees to release more hostages.

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Speaker 17: So basically for every additional ten hostages the Hamas releases,

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Speaker 17: that extends the pause by a day. Remember, Israel estimates

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Speaker 17: about two hundred and forty people were taken hostage during

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Speaker 17: those October seventh attacks, so this has the potential to

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Speaker 17: extend the deal quite a bit. In return, as I said,

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Speaker 17: Hamas gets some prisoner releases from Israeli prisons. They also

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Speaker 17: so get an end to over flights and bombing air

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Speaker 17: strikes of Gaza in that time, and really the chance

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Speaker 17: to get a lot more aid flowing in in terms

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Speaker 17: of medical supplies and fuel for nonprofit groups. That do

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Speaker 17: humanitarian work, So all sides I think had an interest

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Speaker 17: at this point in getting reaching a deal. There were

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Speaker 17: a lot of hiccups in the process, but it looks

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Speaker 17: like it should be going into effect within the coming day.

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Speaker 3: Let's talk about some of those hiccups, because, as you know, Bill,

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Speaker 3: Israeli Prime Minister Benjamin Netanyahu had said as these talks

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Speaker 3: were underway that he wouldn't agree to any pause at

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Speaker 3: all unless all the hostages were freed. So what did

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Speaker 3: it take to get at least this kind of a

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Speaker 3: deal done. The possibility that we could see more pauses,

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Speaker 3: and this potential for a trickle.

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Speaker 5: Of hostages to be released over time.

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Speaker 17: Well, you're right, it wasn't clear at all that it deal.

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Speaker 17: Whatever happened, Katar got involved soon after those October seventh

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Speaker 17: attacks UH and started trying to find a way to

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Speaker 17: focus really on hostages and getting them back the US.

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Speaker 17: The Biden administration was deeply involved in these talks as well,

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Speaker 17: and you're right they did. There was this push to

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Speaker 17: have all hostages released at once that didn't seem to

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Speaker 17: be getting much traction, and Hamas came back with an

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Speaker 17: offer of fifty fifty hostages in one trench and then

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Speaker 17: and then put potentially more in the coming days. What

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Speaker 17: we know is that the leader of Qatar continued to

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Speaker 17: stay very engaged in this and we uh what we

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Speaker 17: what we ended up seeing was was really in agreement

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Speaker 17: to kind of kind of bridge that divide with the

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Speaker 17: fifty UH. President Biden had had a conversation with President

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Speaker 17: Prime Minister net Yahoo at one point, and they really

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Speaker 17: felt like this was probably the best deal they could

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Speaker 17: get for now. The US was really encouraged by the

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Speaker 17: early release of a couple Americans who were taken in

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Speaker 17: the October seventh grade, and they basically built on that.

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Speaker 17: So they went from an initial request of fifty to

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Speaker 17: what could be dozens more than that. We kind of

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Speaker 17: have to see where it goes. But the priority was

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Speaker 17: always initially on women and children and the elderly civilians,

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Speaker 17: and then looking more at soldiers from both sides, and

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Speaker 17: I think that's where talks on further releases will get

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Speaker 17: more complicated.

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Speaker 3: Even as we see this deal get implemented, as you say,

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Speaker 3: possibly as soon as after tomorrow, Prime Minister Natan Yahoo

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Speaker 3: is saying that this won't mean that the war itself

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Speaker 3: is coming to an end. What should we expect when

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Speaker 3: it comes to the fighting and the progress that Israel

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Speaker 3: wants to make against Thomas once this potentially initial pause

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Speaker 3: takes effect.

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Speaker 17: Yeah, I mean, I think it's important to note that

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Speaker 17: all sides are calling this a pause. I think I've

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Speaker 17: seen the word truth, so temporary truth, things like that.

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Speaker 17: No one is calling this an end to the conflict.

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Speaker 17: Before they voted to accept this agreement, they've said that

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Speaker 17: the war will continue.

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Speaker 11: They can.

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Speaker 17: They want to go after eliminating Hamas and returning all

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Speaker 17: the hostages, and they said, you know, when this truce ends,

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Speaker 17: they will they will go back in the fighting will zoom.

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Speaker 17: So it's an important significant step here, but it's not

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Speaker 17: the end of the conflict as we.

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Speaker 5: Know in Okay.

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Speaker 3: Bill Ferries, Bloomberg News senior editor, joining us this morning

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Speaker 3: after we learned that a deal has been struck now

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Speaker 3: between Israel and Hamas to pause the fighting in exchange

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Speaker 3: for hostage releases at least some of the hostages initially

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Speaker 3: being released from Gaza. Now we want to turn to

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Speaker 3: the latest deal at open Ai. This saga that began

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Speaker 3: last Friday may be over after intense pressure from investors.

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Speaker 3: Sam Altman is returning as the CEO of the chat

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Speaker 3: GPT parent company, and the board at OpenAI looks like

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Speaker 3: it is about to go through a serious overhaul. Let's

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Speaker 3: bring in Alex web for more on this story. He

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Speaker 3: covers tech for us for Bloomberg News and has been

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Speaker 3: following this since the sudden ouster last Friday and now

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Speaker 3: the sudden return.

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Speaker 5: Help us make sense of this, Alex, I.

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Speaker 18: Mean, it's a big victory for Microsoft. Essentially. The thing

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Speaker 18: that appears to have happened, and this is what's on

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Speaker 18: the reporting suggests last week is that one of the

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Speaker 18: reasons Sam Alton was ousted was concerned that he was

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Speaker 18: prioritizing the commercial impulses of the company over what actually

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Speaker 18: is his mandate, mainly to improve and this genuinely is

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Speaker 18: the wording. It is to work for the benefit of

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Speaker 18: all humanity. Now Microsoft is almost certainly going to be

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Speaker 18: getting great oversight, greater sway at a board level over

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Speaker 18: what happened at open Ai. The company is therefore going

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Speaker 18: to be run was so slightly more in the interest

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Speaker 18: of Microsoft, not necessarily in the interest of all humanity.

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Speaker 18: The three members have been appointed to the board, Adam DiAngelo,

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Speaker 18: the see of Kor, who was already on there. The

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Speaker 18: new ones are going to be Larry Summers, of course,

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Speaker 18: former Treasury Section under Bill Clinton, and Brett Taylor, the

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Speaker 18: former co CEO of Salesforce. They are going to be

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Speaker 18: as many as nine additional board members. The expectation is

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Speaker 18: perhaps two of those could be representatives of Microsoft, and

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Speaker 18: Altman himself could well rejoin the board.

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Speaker 3: And we should note in the interest of transparency that

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Speaker 3: Larry Summers, along with joining the board at OpenAI as

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Speaker 3: a paid contributor to Bloomberg, with these additions, at least

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Speaker 3: initial additions to the board, Alex, it sounds like that

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Speaker 3: could be the bigger deal here than just simply the

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Speaker 3: return of Sam Altman as the CEO.

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Speaker 18: Yeah, the thing we'd heard on Monday from sat In Nodella,

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Speaker 18: the Microsoft CEO, in an interview Bloomberg Television. He had

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Speaker 18: said he wanted improved to governance at open AI. It

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Speaker 18: seems as though the board composition was the sticking point

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Speaker 18: and why it took a good few days to reach

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Speaker 18: a resolution, given that we had heard as early as

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Speaker 18: Sunday that there there were moves from both sides to

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Speaker 18: bring Sam Altman back into the fold. When Nadella says

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Speaker 18: he wants improvements to governance, everybody more or less understood

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Speaker 18: that to mean he wanted Microsoft to have better inside.

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Speaker 18: Because this completely blindsided Microsoft is firing of Sam Wortman

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Speaker 18: and subsequent departure of Greg Brockman, the president of the company.

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Speaker 18: Microsoft had no forewarning of that. They learned it pretty

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Speaker 18: much at the same time the rest of the world did.

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Speaker 18: The understanding is it was maybe a few minutes before

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Speaker 18: they put the rest release or the post on their

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Speaker 18: website up. So you know, surprises for big businesses are

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Speaker 18: not considered good, and that's clearly something that Microsoft wanted

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Speaker 18: to fix.

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Speaker 3: To your point earlier about this signaling the idea that

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Speaker 3: this could take the open AI in the direction of

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Speaker 3: where Microsoft wants to go as opposed to.

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Speaker 5: The betterment of humanity.

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Speaker 3: Talk a little bit more about what this could mean

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Speaker 3: for open AI and the competition, this massive competition that

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Speaker 3: we're seeing between Microsoft and so many of the other

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Speaker 3: players in the artificial intelligence space.

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Speaker 5: What could this mean down the line.

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Speaker 18: So there are basically four big players, certainly in the

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Speaker 18: Western hemisphere in advanced artificial intelligence research. There's deep Mind,

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Speaker 18: which is now Google Deep Mind. It is part of Google.

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Speaker 18: There is microsoft SORR Meta AI Research clearly part of Meta.

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Speaker 18: There is open Ai, which is very closely aligned with Microsoft.

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Speaker 18: And there is also an Anthropic which was founded by

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Speaker 18: a bunch of departees from open Ai a few years ago. Google,

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Speaker 18: Microsoft and Amazon are the ones really competing in the cloud,

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Speaker 18: and at the moment, the real way to make money

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Speaker 18: from AI is in the cloud. It is from not

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Speaker 18: necessarily selling the AI services to companies to use. Is

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Speaker 18: the processing power needed to run those AI serves, and

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Speaker 18: that's where the margin really is. Google Microsoft fans and

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Speaker 18: can compete very fiercely in that space. Microsoft has this

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Speaker 18: huge benefit from the relationship with open Ai, but it

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Speaker 18: does not technically own open Ai. And then the way

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Speaker 18: that Google owns DeepMind. So that's really the lay of

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Speaker 18: the land when it comes to the battlefield. This will

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Speaker 18: help Microsoft potentially by hearing them more closely still to

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Speaker 18: their long term business goals.

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Speaker 3: Let's talk about the other AI story that everyone was

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Speaker 3: waiting for even before last Friday. Of course, that's the

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Speaker 3: earnings from Nvidia. Another is a solid quarter, but the

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Speaker 3: shares are dropping ever so slightly this morning.

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Speaker 5: What's the disconnect I mean.

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Speaker 18: Look, the expectations for this company are absolutely sky high,

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Speaker 18: and there was heading into the numbers some expectation that

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Speaker 18: essentially a beat is a meat, right. People were expecting

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Speaker 18: them to beat expectations, and if they didn't completely blow

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Speaker 18: expectations out of the water, then there might be a

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Speaker 18: little bit of profit taking. That certainly looks like what

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Speaker 18: is happening now that the shares have been on such

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Speaker 18: a tear recent month, are as an opportunity for you know,

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Speaker 18: some investors to maybe just cash in a little bit

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Speaker 18: on that. It doesn't appear to be anything particularly catastrophic.

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Speaker 18: There's still a lot of growth left in this company.

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Speaker 18: The only question marketting forward is what is the exposure

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Speaker 18: to China? They want more exposure, but it looks as

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Speaker 18: though the government is cracking down on some of that.

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Speaker 18: How big an impact will that have.

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