Speaker 1: Good morning.
Speaker 2: I'm Brian Curtis and I'm Doug Prisner. Here are the
Speaker 2: stories we're following today.
Speaker 1: Well, a couple of tough angles on the Hamas Israel war.
Speaker 1: The release of hostages has gone a little closer, according
Speaker 1: to a Biden aid and Israel's military says a video
Speaker 1: that they have shows a tunnel under a hospital where
Speaker 1: there was recent fighting. Let's get to Ed Baxter in
Speaker 1: San Francisco with all the latest dead.
Speaker 3: Yeah, Brian, You're right. Cutter's Prime minister says only minor
Speaker 3: obstacles to reaching a hostage deal between Israel and Hamas
Speaker 3: PM Sheik Muhammad Athone saying that good progress has been
Speaker 3: made in the past few days, and that US Deputy
Speaker 3: National Security Advisor John Feiner on ABC Echos has heard
Speaker 3: on Bloomberg by the way, says he can't directly comment
Speaker 3: because of the sensitivity on timing, but the hope is
Speaker 3: very good.
Speaker 4: What I can say about the state of the talks,
Speaker 4: and the Prime Minister of Cutter has said something similar
Speaker 4: this morning, is that some of the gaps have now narrowed,
Speaker 4: some of the issues that were at odds have now
Speaker 4: been closed out, but we are not finished. There is
Speaker 4: not yet a deal in place.
Speaker 3: Yeah. Finder says he believes a majority of the hostages
Speaker 3: are alive.
Speaker 4: Though you believe that a significant number and most likely
Speaker 4: the majority and even the vast majority of hostages are alive.
Speaker 4: We are certainly operating under that assumption.
Speaker 3: And the AID says. The EU says that it's getting
Speaker 3: aid into Gaza every day through Egypt. Now, EU commissioned
Speaker 3: President ursavandeleran.
Speaker 5: Egypt is truly providing a life line for Gaza, and
Speaker 5: the European Union is making the full views of this
Speaker 5: lifeline to address the humanitarian needs in.
Speaker 3: Gaza, she says, flights every day. Meanwhile, Israel is facing
Speaker 3: increased scrutiny over the military activity in and around Al
Speaker 3: Shifa Hospital, says it is now released a video showing
Speaker 3: evidence of why operations had to be carried out this way.
Speaker 3: It shows a tunnel under Al Shifa Hospital. ABC has
Speaker 3: heard here on Bloomberg, Israeli Ambassador the US, Michael hurst
Speaker 3: Zo says, stashes of weapons.
Speaker 6: We found love of weapons, we found computers, we found
Speaker 6: a lot of things. We found tunnels. We're now searching
Speaker 6: these tunnels. They're all booby trapped, but we are in
Speaker 6: the process of searching these tunnels, and we show our
Speaker 6: findings to the world while we were there.
Speaker 3: We're still there, and Herzak says the hospital continues to function.
Speaker 3: Roseland Carter and Jimmy Carter's first lady has passed away.
Speaker 3: Roseland Carter's been a tireless humanitarian both during the administration
Speaker 3: and after. She was also a mental health advocate of
Speaker 3: the first Order. She has been the under hospice care.
Speaker 3: She was ninety six years of age. Russia's hit Kiev
Speaker 3: with a second night of drone strikes. Ukraine says shot
Speaker 3: down fifteen to twenty shared drones launch from Krusk across
Speaker 3: southern Russia. Ukraine has launched an effort to support truck
Speaker 3: drivers stuck for days and the Ukrainian Polish cross border
Speaker 3: points because of the strike by Polish truckers. A group
Speaker 3: of US lawmakers as black elon Musk and plan to
Speaker 3: ask him to retract his backing for an antisemitic post
Speaker 3: on x Congressman Jamie Raskin on CNN State of the
Speaker 3: Union says, absolutely outrageous.
Speaker 7: I thought it was outrageous and dangerous, and you know,
Speaker 7: we'll be taking action with colleagues this week to write
Speaker 7: to him to ask him to renounce those comments and
Speaker 7: to clean up his app.
Speaker 3: He says so called white replacement theory has led to
Speaker 3: shootings and incidents of hate crime. Musk has denounced the report,
Speaker 3: saying he is not ani Semitic, and hedge fund manager
Speaker 3: Bill Ackman is defending Musk, saying he is not is
Speaker 3: not an anti semi that's his word. Says Musk is
Speaker 3: not perfect, but the world is a vastly better place
Speaker 3: because of him.
Speaker 1: Well, let's take a look at the top business stories
Speaker 1: of the hour. Open AI's biggest investors, including Microsoft, want
Speaker 1: to bring Sam Altman back as CEO after the board
Speaker 1: had fired him on Friday. We hear that Altman is
Speaker 1: open to the idea, but wants to see some changes,
Speaker 1: including the removal of existing board members. A deadline has
Speaker 1: been set for five pm San Francisco, time for the
Speaker 1: board to accede to the demands of Altman and his supporters.
Speaker 1: Before Altman was fired, we're told he was actively working
Speaker 1: to raise funds from some of the world's largest investors
Speaker 1: for a new chip venture, an AI chip venture it's
Speaker 1: could named Tigris. To get the story from Bloomberg.
Speaker 8: To Ed Ludlow, sam Altman was speaking with people like
Speaker 8: SoftBank who are desperate to invest in open Ai and Mubadala,
Speaker 8: which is the kind of private investment arm of the
Speaker 8: United Arab Emirates, and my understanding from sources, those two
Speaker 8: firms in particular really wanted to get a piece of
Speaker 8: open Ai. But what sam Altman said was, well, you know,
Speaker 8: now is not kind of the right time for you
Speaker 8: guys to invest or get in, But how about investing
Speaker 8: in this other project that I'm working on. What we
Speaker 8: know about the project is that it hopes to make
Speaker 8: what are cooled tensor processing units or tpused.
Speaker 1: That's Ed Ludlow. He says that data centered chips can
Speaker 1: manage high volume AI workloads. We're told Altman's chip venture
Speaker 1: has not yet been formed and the talks with investors
Speaker 1: while they were in the early stages.
Speaker 2: We're hearing the investment firm Blackstone is now the lead
Speaker 2: bidder for a huge chunk of property loans from the
Speaker 2: failed Signature Bank. The story from Bloomberg's Denise Pellegrini.
Speaker 9: Sources say Blackstone is the front runner to win a
Speaker 9: seventeen billion dollar portfolio of commercial property loans from this
Speaker 9: FDIC sale, regulators sees the failed bank. In March, they've
Speaker 9: been marketing about thirty three billion dollars in real estate
Speaker 9: loans sum backed by retail, industrial, office, and apartment buildings.
Speaker 9: Others said to have been or be interested in bidding
Speaker 9: include Starward Capital and Brookfield Asset Management, and investors overall
Speaker 9: are also watching this sale closely as they try to
Speaker 9: get a handle on prices in a largely frozen commercial
Speaker 9: real life state market. Signature was a big lender to
Speaker 9: New York City landlords, including the owners of rent stabilized
Speaker 9: and rent controlled units, but we're hearing those apartments are
Speaker 9: not part of this possible Blackstone deal. Denise Pelgrady Bloomberg
Speaker 9: Radio City.
Speaker 1: Group could be getting ready for a new round of
Speaker 1: job cuts. Bloomberg's Leslie Latto reports.
Speaker 10: The sweeping reorganization could start as soon as Monday. The
Speaker 10: first major wave and chief executive Officer Jane Fraser's overhaul
Speaker 10: to simplify the sprawling lender and shave down five layers
Speaker 10: of management. The company has said the cuts would begin
Speaker 10: by the end of the month and continue through the
Speaker 10: end of the first quarter. They've not said exactly how
Speaker 10: many people would lose their jobs overall, even before the
Speaker 10: News Citygroup had racked up about six hundred and fifty
Speaker 10: million dollars in severance charges as part of cutting seven
Speaker 10: thousand positions in the first nine months of this year.
Speaker 10: Leslie Latto Bloomberg Radio.
Speaker 2: This is going to be the first ants for markets
Speaker 2: in Asia to react to the FED speak from last Friday.
Speaker 2: San Francisco president Mary Daily said policymakers aren't certain inflation
Speaker 2: is on the path toward that two percent target. However,
Speaker 2: Vice Chair for Supervision Michael Barr offered a different take.
Speaker 11: That we're likely at or near the peak of where
Speaker 11: we need to be in terms of having a sufficiently
Speaker 11: restrictive stance of monetary policy that we'll sustainably bring inflation
Speaker 11: down to two percent. And I think the recent economic
Speaker 11: readings reinforce my view that that is probably correct.
Speaker 2: That is FED Vice Chair for Supervision Michael Barr. By
Speaker 2: the way, the market will be looking out for minutes
Speaker 2: from the fed's last meeting, the November meeting, and what
Speaker 2: those minutes say about the path of rates. Those minutes
Speaker 2: are due on Tuesday, right well.
Speaker 1: A critical flaw in software from Citric Systems has been
Speaker 1: exploited by government backed hackers in criminal groups. That's according
Speaker 1: to a US cybersecurity official. Citric said that the flawed
Speaker 1: dubbed the Citrix bleed, was abused by hackers in secret
Speaker 1: for weeks before it was found, and a fix was
Speaker 1: issued last month. We hear the US Treasury has also
Speaker 1: said that it's investigating whether Citrics vulnerabilities are responsible for
Speaker 1: the recent ransom hack against the Industrial and Commercial Bank
Speaker 1: of China ICBC.
Speaker 2: Goud Well, a leading scholar in China, is now calling
Speaker 2: on Beijing to raise the government's deficit spending ratio all
Speaker 2: the way to five percent of GDP. Bloomberg's David and
Speaker 2: Glass says.
Speaker 12: More from Hong Kong, Chinese scholar Jagan Leong says China
Speaker 12: needs to ramp up fiscal spending decisively to support the economy,
Speaker 12: and this is one.
Speaker 2: Way to do it.
Speaker 12: The scholar says raising the government's deficit ratio would compensate
Speaker 12: for insufficient demand and resolve the issue of oversupply. The
Speaker 12: call of five percent is sharply higher than the government's
Speaker 12: traditional target of three percent. The call might not be
Speaker 12: too serp prizing in that Jah is one of China's
Speaker 12: most prominent backers of modern monetary theory. Jazz Advice adds
Speaker 12: to a corrus of economists calling for more fiscal stimulus
Speaker 12: to support the economy in Hong Kong. I'm David Ingless
Speaker 12: Bloomberg Radio.
Speaker 1: And we are just getting ahead a red headline on
Speaker 1: the terminal here about the winner in Argentina. Okay, it
Speaker 1: goes to Milay. We're looking at the election results here
Speaker 1: as his opponent Masa has conceded. And now it's time
Speaker 1: to get to one of our top stories of the hour.
Speaker 1: We're hearing that a group of Open a I executives
Speaker 1: and investors have given the board a deadline of five
Speaker 1: pm Pacific time or eight pm Wall Street time to
Speaker 1: reinstate former CEO Sam Altman. Joining us now for some
Speaker 1: clarity on this story is Rachel Metz, Bloomberg AI reporter. Rachel,
Speaker 1: thanks very much, I say clarity. I know there's a
Speaker 1: lot of questions unanswered. A couple right off the bat
Speaker 1: would be why was Sam Altman fired? And secondly, what
Speaker 1: were the conditions? Under what conditions would he be reinstated?
Speaker 13: These are all good questions, and of some of the
Speaker 13: answer is is confusing or it's complicated. So on Friday,
Speaker 13: the board out died Altman, and they they said that
Speaker 13: that there were some reasons for doing so. In fact,
Speaker 13: they said that he was quote not consistently candidates communications
Speaker 13: with the board. Yet it wasn't really clear what that meant.
Speaker 13: And now it sounds like there's an ongoing effort and
Speaker 13: things are changing quickly. But a group of Opening A
Speaker 13: executives and investors are trying to get Altman back into
Speaker 13: that role as CEO. And we're still kind of waiting
Speaker 13: and watching and trying to figure out which way this
Speaker 13: is going to go the next few hours.
Speaker 14: Who are these board members, Rachel and what other interests
Speaker 14: might they have.
Speaker 13: Well, so until Friday, the board consisted of Sam Altman,
Speaker 13: Greg Brockman. Greg Brockman uh was the president of open
Speaker 13: AI and he had been the board chairman and he
Speaker 13: actually he had been demoted from his board spot when
Speaker 13: Altman was ousted and then he subsequently quit. So it
Speaker 13: was Altman, Brockman, Ilias Setskber the all three of them
Speaker 13: Open AI and then three outside board members Adam D'Angelo
Speaker 13: who is the CEO of Cora, Inc. Tash McCauley, who
Speaker 13: is a tech entrepreneur, and Helen Turner, who's the director
Speaker 13: of Strategy at Georgetown Center for Security in Emersion Technology.
Speaker 1: When I first read the line that he was asking
Speaker 1: for board members to be UH to be released, I
Speaker 1: thought it must be some board members, but he wants
Speaker 1: all of them to be UH to lose their seats.
Speaker 13: I mean, it sounds like that's one of the things
Speaker 13: that he wants to see is the removal of the
Speaker 13: assisting board members. As well as what our reporting has
Speaker 13: brought out, it's a statement absolving him of doing anything wrong.
Speaker 13: Open AI leadership has put out memos internally at the
Speaker 13: company saying that the board hasn't said that there was
Speaker 13: any quote, malfeasance or anything like that. So it's not
Speaker 13: totally clear what the board was initially even accusing him
Speaker 13: of doing when it got rid of him.
Speaker 14: Now, Miramrotti, the Chief Strategy officer who became at least
Speaker 14: interim CEO, she also wants him back right as CEO.
Speaker 13: That's what it sounds like. Yees, so they're sorry.
Speaker 9: Well, I was just going to say.
Speaker 14: If that's the case and he does come back as CEO,
Speaker 14: and there's a new board, all of whom he you know,
Speaker 14: supports in terms of members. Does that then create its
Speaker 14: own sort of conflict?
Speaker 13: You mean if he comes comes back and she is
Speaker 13: no longer interim CEO.
Speaker 9: Correct.
Speaker 13: Yeah, I don't know if it does necessarily. I mean,
Speaker 13: I think it's sort of I mean, it probably depends
Speaker 13: on what they work out. But I mean, she was
Speaker 13: already one of the key leaders of the company. She's
Speaker 13: been CTO for a while now there, and she has
Speaker 13: been positioned increasingly as a leader, often even alongside him,
Speaker 13: such as at their development day recently, like earlier this month,
Speaker 13: they co hosted a question me answer session with reporters
Speaker 13: aside from the keynote afterwards. So she's increasingly being brought
Speaker 13: out as leader, and I guess we'd have to wait
Speaker 13: and see what would happen there. But they definitely have
Speaker 13: a history of working and working all together.
Speaker 1: Yeah, we covered a little bit of this earlier. But
Speaker 1: I'm curious if you can tell us a little bit
Speaker 1: more about Tigris this new AI chip, because it seems
Speaker 1: like maybe some movement on this by Altman without perhaps
Speaker 1: the board's knowledge, maybe that was somehow connected with the
Speaker 1: firing on Friday.
Speaker 13: I mean that the board has not said that, but
Speaker 13: we do know that he has been working on some
Speaker 13: other business ventor is one of them being raising funds
Speaker 13: for a chip making startup. As we know, making chips
Speaker 13: is extremely difficult and extremely expensive and extremely time consuming,
Speaker 13: so it takes a lot of money to do that,
Speaker 13: and we'll just have to see what happens with it.
Speaker 1: All right, Thanks so much, Rachel. Rachel Mets, Bloomberg AI reporter.
Speaker 1: This is Bloomberg Daybreak Asia, your morning brief on the
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