Sam Bankman-Fried Guilty; Investors take a Bite out of Apple Stock
On today's podcast:
1) Bankman-Fried Found Guilty of Fraud at FTX Criminal Trial
Jurors in New York found Sam Bankman-Fried guilty of engaging in a massive fraud related to the collapse of his FTX crypto exchange. Bankman-Fried’s arrest last December, weeks after his exchange filed for bankruptcy, marked a dramatic escalation in the efforts by regulators and prosecutors to rein in what they perceive as excesses in the industry.
2) Israel Latest: Intense Gaza Strikes as Blinken Lands In Tel Aviv
Hezbollah’s leader issued a warning to Israel that the Lebanon-based militant group is ready for “all possibilities,” suggesting the daily cross-border fire between the two could tip into a full-blown war.
3) Apple Warns of Sluggish Holiday Quarter After China Slowdown
Apple Inc.’s disappointing holiday-quarter outlook has cast a spotlight on its mounting problems in China, where the iPhone maker is struggling with the unexpected rise of Huawei Technologies Co. and an increasingly hostile business environment.
FULL TRANSCRIPT:
Good morning. I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today. We begin with a guilty verdict for Sam bankman freed. It took a jury less than five hours to convict the FTX co founder of seven counts of fraud and conspiracy. Bloomberg's June Grosso begins our team coverage. It's not a surprise because the evidence against him was overwhelming. And think, what did it is? Sam Bankminfried took the stand in his own defense. And when a defendant takes the stand that way, the whole thing in the jury's mind becomes a credibility game. How credible do they find him? Bloomberg's June Grosso says, Sam bankman Fried faces as much as twenty years in prison on each of the most serious charges. He'll be sentenced in March. Well, Nathan Bloomberg, The legal reporter Ava Benny Morrison, was in the courtroom during the verdict, and she continues our team coverage. Dave was pretty emotionless. He was as to stand up by the judge. When the jury delivered its verdict. He faced the jury box, he held his hands in front of him and it looked like he was tearing down at the floor as the jury. As the fourth person to the jury confirmed guilty to each of the seven charges. He then sat back down. When the jury walked out of the room, he was whispering with his lawyers. He was nodding a lot. While he wasn't very emotional. His parents were. They were holding each other. His dad doubled over at one point. Bloomberg Legal reporter Ava Bennie Morrison reports Bankman's lawyer is considering an appeal may Karen Bloomberg. Business Week investigative reporter Zeke Fox wrote a book on ftx's Crypto roller Coaster, and he says Bankman freed struggled under cross examination. When his own lawyer was questioning him, he had a lot to say, but when the prosecution had there turned a cross examine, he suddenly didn't remember anything and in one moment that was dramatic, I mean, especially for me. The prosecutor asked her, as she asked him about the statement, there was more leeway, and he said, I don't remember saying anything like that. She whipped out a copy of my book, number Go Up and walked it over to him like a hard copy and was like turn to page two twenty four in Bloomberg Business Week, Zeek Fox ads the conviction is the first in a wave of legal action against crypto companies. Nathan now to the other major trial happening in New York, Donald Trump's two hundred and fifty million dollars civil fraud case. The former president's two oldest sons took turns on the witness stand, denying any role in preparing their company's financial records. Afterward, Donald Trump Junior addressed reporters before even having a day in court, I'm apparently guilty uh a fraud for relying on my accountants to do wait for it, accounting. Donald Trump Junior's brother is set to continue testifying today. Their sister, Evonka, will take this stand next week. She lost an appeal to delay her testimony. Well, Karen, we now turn to the war in the Middle East. Secretary of State Anthony Blinken is back in Tel Aviv. We're determined that this conflict not spread, and we'll be talking to both the Israeli government partners in the region about what all of us are doing to prevent that from happening. When Secretary of State b Lincoln's arrival comes as ground operations continue in Gaza. The Hamas run Health Ministry says more than nine thousand Palestinians have died in the fighting. Israel says seventeen of its soldiers have been killed. Well, Nathan, the House has passed the Aid for Israel bill, but Bloomberg's ad Baxter reports and may have a troubled future. This is a victory for House Speaker Mike Johnson, but it looks as if it is dead to become law. Senate majority leader Chuck Schumer has been saying taking funding from IRS enforcement is a bad idea, and President Biden is out saying if it were to hit his desk, he would not sign it. House Speaker Johnson says it will get done. There is absolutely no equivocation here. We have to stay with Israel, and Republican Congressman Tom Cole says there are different paths to get the aid. We have a lot of unspent money. We ought to use that toward a more important purpose and that's his real So the issue is far from settled at Baxter Bloomberg Radio, Okay, and thank you. Turning the market. Shares of Apple are down more than three percent. The world's most valuable company reported its fourth straight sales decline and its warning holiday revenue will be about the same as last year. Angelo Zeno, as senior equity analyst, it's CFRAA research. It's not the most favorable landscape out there for PCs, even though the broader PC landscape appears to have found some sort of putting for the time being. But at the end of the day, the consumer landscape is still very challenging in nature CFAs angelo Zino says. The results also suggest apples facing a deceleration in China. Well Nathan O their stocks on the move this morning. Shares of DraftKings up seven percent. The sports betting operator reported sales and player numbers that beat analyst expectations, Block shares surging more than a ten percent. The Payments Giant run by Jack Dorsey, again boosting its profit forecast for the year, and shares a Booking dropping as much as seven percent in light trading. The company formerly known as Price Lines as travel demand had been diminished by the Israel Hamas war. On the economic front, karen a busy week concludes with the October Jobs report, a preview of that now from Bloomberg's Michael McKee, FED chair j Powell says a tight labor market could lead to another rate move, which means markets will parse the October jobs report trying to determine what it signals. Is hiring still much stronger than what's needed to absorb an increasing labor force. Have higher interest rates led companies to pull back on hiring or even start letting people go. Our companies still paying up to attract workers, While the Fed we'll also see the November payrolls report before its next meeting. Powell says it will take several months of data to make any decisions. Michael McKee, Bloomberg Radio. All right, Nathan, thank you. It is time now for a look at some of the other stories making news around the world, and for that we're joined by Bloomberg's John Tucker, John, good morning, and Karen. Something maybe rotten in the Big Apple. The mayor's fundraising campaign is under investigation. Let's get more on this report from Bloomberg's Michael Barr. Mayor Adams ditched a White House meeting on the migrant crisis and flew back to the city. The mayor explaining his abrupt return, but you probably heard the reports involved in one of my campaign staffers. The staffer is lead fundraiser, twenty five year old Brianna Suggs, whose Brooklyn home was raided by the FBI. Along with the officers of a New York construction firm called KSK, it made fourteen thousand dollars in campaign contributions. The investigation is looking into whether the company, along with Turkish nationals, made in proper donations in New York. Michael Barr Bloomberg Radio Adams was supposed to be with the mayors of Chicago and Denver. It asked Congress to approve President Biden's request at one point four billion dollars to help the cities and states in the migrant crisis. Denver Mayor Mike Johnston, we're both of what wey've done. It's critical for us that this package passes over the next several weeks to get funding to cities, otherwise we'll have catastrophic impacts. The Democratic Mayor's trying to put pressure on the blinded administration to address the humanitarian crisis caused by record crossings at the southern border. The Senate had voted ninety five to one to confirm Admiral Linda Franchetti to be the next Chief of Naval Operations, making her the first woman to be a US military service chief. Set of Majority Leader Chuck Schumer and Admiral Fanchette is an exceptional leader with a distinguished career serving our nation. I'm confident she has the experience, the skills, and the vision to succeed as the US Navy's top naval as the US Navy's top officer. Franchetti's confirmation comes amid a temporary break from a blockade by Senator Tommy Tubberville stalling hundreds of military promotions. Riding high on historic contract wins against Detroit's automakers, UAWT President Sean Fain he is confident he can now take on Tesla and it's anti union chief Elon Musk. In an interview with Bloomberg yesterday, Fan said we can beat anybody global news twenty four hours a day and whenever you want it with Bloomberg News. Now, I'm John Tucker, and this is Bloomberg. Karen, all right, John, thanks, so we bring you news throughout the day here on Bloomberg Radio. But now you can get the latest news on demand whenever you want it. Subscribe to Bloomberg News Now to get the latest headlines at the click of a button. Get informed on your schedule. You can listen and subscribe to Bloomberg News Now on the Bloomberg Business app, Bloomberg dot com plus Apple, Spotify, and anywhere else you get your podcasts. Time now for the Bloomberg Sports Update. Here's John stash Hour John Karen Weign. I'm in the NFL Underway with an AFC game in Pittsburgh. The Steelers and Titans were tied at ten, then at thirteen. Pittsburgh trailed in the fourth quarter. Ticket in the shotgun gets the snap looks right. Johnson White open tutop Pittsburgh. The Steelers bunched ninety two yards to take Tully. That's the day Johnson's first touchdown and won a couple season tests. Twenty Games TV had the calls. The Steelers beat the Titans twenty to sixteen. Pittsburgh's five and three Tennessee is three and five In Victor Weinberana's fifth NBA game, the Spurs rookie sensations scored thirty eight points. He had ten rebounds. Some highlight reel baskets as the San Antonio Spurs blew a twenty seven point lead but still beat Phoenix won thirty two to one twenty one. Philadelphia's three and one won by fifteen over Toronto. Joel Mbi scored twenty eight. The Pelicans are four to one. They played without Zion Williams from CJ. McCollums scored thirty three and win over Detroit. Orlando won by two at Utah Paalo Bankero scored thirty. The games tonight of the NBA marked the beginning of the NBA's in season tournament. The Bruins are nine to zhoin one. They beat Toronto three two in a shootout. Nelson Cruz announced his retirement at age forty three. Played nineteen seasons. There eight different teams at four hundred and sixty four home runs as expected World Series ratings, the lowest ever one hundred and thirty baseball players will be free agents. Heading the list show AO Time John Stanshaur Bloomberg sports from coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Syrias Exam. The Bloomberg Business app in Bloomberg dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. Guilty on all counts. After a month long trial, Sam Bankman Freed is convicted in one of the biggest cases of financial fraud in decades over the collapse of his FTX crypto empire. For more reaction to this outcome, we are joined now by Bloomberg Law host June Grosso. It's good to have you back with us this morning. Of course, this came after more than fifteen days of testimony that this jury heard. In the end, though it did take only about five hours for those jurors to come back with a verdict. Your thoughts, Yeah, it was a very quick verdict. I think that the evidence of this case was overwhelming. The prosecution had not only documents that they could present, but they also had three insiders, three witnesses who were close friends of Bankment Freed, one a former girlfriend of his, who were in on the process, in on what happened, and they testified, and their testimony was very you know, conclusive, and the cross examinations really didn't expose many holds in their testimony. And you also had the fact that Sam bankmin Freed took the stand, and when a defendant takes the stand, the focus for the jury then becomes the credibility of that defendant. And while he did pretty well on direct examination, on cross examination, the cross exit nomination was just withering and he said I don't know, or words to that effect more than a hundred times. So I think that in this case, he's taking the stand, which was a risky move. Everyone knows that it's a risky move for a defendant to take the stand, and it worked against him. Here, was that the biggest mistake that Sam Bankman Freed made to take the stand? Or is there something more that he could have done to try to rebut that testimony from as you say, what used to be his closest friends, his inner circle, Well, you know, it's hard to say. I don't want to characterize it as a mistake really because I don't know that he had any other choice. The evidence against him, as I said, was building, building, building. He had those those witnesses who turned against him, and really, what else could he have done but take the stand. He really had no other recourse. It was sort of forced on him as the trial was going on, the question will he take the stand or not. And the analysis was, well, he has the kind of personality to want to take the stand. I mean, look at all the times he's talked in the media, but everyone knew that on cross examination he was going to be confronted with not only the testimony of the three people who were closest to him at FTX and Alima Research who turned on him, but also all the statements that he made, all the times he talked to the media about FTX after the bankruptcy. So but what else could he do? It was it was a hail Mary pass and he took it. But you know, the choice was really there wasn't really wasn't much choice because it was so overwhelming at that point that you know, he had to take the chance. And there was, as you mentioned, so much overwhelming testimony against him before the standard. Even before that testimony, I mean, he lost a number of pre trial motions that kept him from calling expert witnesses. And of course there was that moment even before he was allowed to testify before a jury, where he got on the stand in front of the judge to argue for being allowed to testify about advice from his lawyers. So I mean, he had a number of hands tied behind his back, didn't he. Yeah, I think you know so many of the motions, every big one that I can think of. The judge ruled against him, and in particular, he was on the stand, as you mentioned, about three hours testifying before the judge, so the judge could decide whether or not he could get use an advice of council defense and that was really critical to his defense his lawyers, and he wanted to say that what he did he did because he was relying on the advice of his attorneys, and the judge said that he could not do that. I mean, the judge even ruled before trial that they couldn't use that, they couldn't talk about that in their opening statements to the jury. And then then he had those three hours on the stands where the judge decided that he couldn't use that and he couldn't talk about that in front of the jury, and that was really a hit on his defense. And if you go back, I mean even before the trial, the judge, as you mentioned, said that he couldn't use expert witnesses, and the judge threw him into jail after he had communicated with the press, and that was really a surprise too, because he had a huge bail package and the defense was coming in to agree that day to a gag order. Instead, the judge decided that he was going to throw him into jail weeks before the trial, and that really puts a strain on the defense in more ways than one. I mean, not only did he not have his adderall when he was in jail, not have the right dose of it, but he's a vegan and he didn't get the kind of food he eats. He didn't get the kind of food at the Brooklyn Detention Center, so everyone saw that he lost a lot of weight when it came to the courtroom. But more than that, it's very difficult to prepare for trial when you're behind bars and your lawyer has to make appointments to meet you, and you don't have access to all the documents and you know, the internet and the things you need. So it really was an uphill battle for him from the very beginning. And so we've had this uphill battle go on for just about a month. After a relatively quick jury decision, we are expecting that Sam Bankminfried and his lawyers are going to appeal this verdict. How do you expect that to go? Now, Well, you know, they have a lot of issues that they can appeal on, and they're the ones that I was just talking about, the judge turning down the advice of counsel and the expert witnesses, and I'm sure they have a lot more from what happened at trial, but it's it's very difficult to get a conviction reversed on appeal. It happens, but it's very difficult because a lot of these decisions are what they say, you know, in the discretion of the judge, and the appellate court won't touch a lot of a lot of these decisions if they feel that it was in the discretion of the judge and that these may all fit in that category. So you know they will. They do have a lot to talk about, They do have a lot to raise on appeal, but you know, it's another uphill battle for him. This is Bloomberg day Break Today, your morning brief on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feat at six am Eastern each morning, on Apple, Spotify, and anywhere else you get your podcasts. You can also listen live each morning starting at five am Wall Street Time on Bloomberg eleven three to zero in New York, Bloomberg ninety nine one in Washington, Bloomberg one oh sixty one in Boston, and Bloomberg ninety sixty in San Francisco. Our flagship New York station is also available on your Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus listen coast to coast on the Bloomberg Business app, serious XM Channel one nineteen, the iHeartRadio app, and on Bloomberg dot com. I'm Nathan Hager and I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak
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Good morning. 0:00:03.080 --> 0:00:05.920 I'm Nathan Hager and I'm Karen Moscow. Here are the 0:00:05.960 --> 0:00:07.440 stories we're following today. 0:00:08.280 --> 0:00:11.879 We begin with a guilty verdict for Sam bankman freed. 0:00:12.080 --> 0:00:14.640 It took a jury less than five hours to convict 0:00:14.680 --> 0:00:18.200 the FTX co founder of seven counts of fraud and conspiracy. 0:00:18.400 --> 0:00:21.200 Bloomberg's June Grosso begins our team coverage. 0:00:21.400 --> 0:00:25.880 It's not a surprise because the evidence against him was overwhelming. 0:00:26.160 --> 0:00:30.640 And think, what did it is? Sam Bankminfried took the 0:00:30.720 --> 0:00:33.160 stand in his own defense. And when a defendant takes 0:00:33.159 --> 0:00:36.599 the stand that way, the whole thing in the jury's 0:00:36.640 --> 0:00:41.400 mind becomes a credibility game. How credible do they find him? 0:00:42.000 --> 0:00:45.040 Bloomberg's June Grosso says, Sam bankman Fried faces as much 0:00:45.040 --> 0:00:47.440 as twenty years in prison on each of the most 0:00:47.440 --> 0:00:49.760 serious charges. He'll be sentenced in March. 0:00:50.400 --> 0:00:53.600 Well, Nathan Bloomberg, The legal reporter Ava Benny Morrison, was 0:00:53.600 --> 0:00:56.160 in the courtroom during the verdict, and she continues our 0:00:56.200 --> 0:00:57.080 team coverage. 0:00:57.320 --> 0:01:00.920 Dave was pretty emotionless. He was as to stand up 0:01:01.440 --> 0:01:05.200 by the judge. When the jury delivered its verdict. He 0:01:05.520 --> 0:01:09.520 faced the jury box, he held his hands in front 0:01:09.520 --> 0:01:12.000 of him and it looked like he was tearing down 0:01:12.000 --> 0:01:15.160 at the floor as the jury. As the fourth person 0:01:15.200 --> 0:01:19.320 to the jury confirmed guilty to each of the seven charges. 0:01:19.720 --> 0:01:22.160 He then sat back down. When the jury walked out 0:01:22.160 --> 0:01:25.160 of the room, he was whispering with his lawyers. He 0:01:25.200 --> 0:01:28.680 was nodding a lot. While he wasn't very emotional. His 0:01:28.800 --> 0:01:32.959 parents were. They were holding each other. His dad doubled 0:01:32.959 --> 0:01:34.040 over at one point. 0:01:34.280 --> 0:01:38.440 Bloomberg Legal reporter Ava Bennie Morrison reports Bankman's lawyer is 0:01:38.520 --> 0:01:39.880 considering an appeal. 0:01:39.680 --> 0:01:43.240 May Karen Bloomberg. Business Week investigative reporter Zeke Fox wrote 0:01:43.240 --> 0:01:46.600 a book on ftx's Crypto roller Coaster, and he says 0:01:46.640 --> 0:01:49.160 Bankman freed struggled under cross examination. 0:01:49.600 --> 0:01:53.680 When his own lawyer was questioning him, he had a 0:01:53.760 --> 0:01:56.800 lot to say, but when the prosecution had there turned 0:01:56.800 --> 0:02:00.560 a cross examine, he suddenly didn't remember anything and in 0:02:00.560 --> 0:02:03.040 one moment that was dramatic, I mean, especially for me. 0:02:03.640 --> 0:02:07.880 The prosecutor asked her, as she asked him about the statement, 0:02:07.920 --> 0:02:10.840 there was more leeway, and he said, I don't remember 0:02:10.880 --> 0:02:13.600 saying anything like that. She whipped out a copy of 0:02:13.639 --> 0:02:16.639 my book, number Go Up and walked it over to 0:02:16.720 --> 0:02:19.680 him like a hard copy and was like turn to 0:02:19.720 --> 0:02:21.000 page two twenty four. 0:02:21.120 --> 0:02:24.080 In Bloomberg Business Week, Zeek Fox ads the conviction is 0:02:24.120 --> 0:02:27.320 the first in a wave of legal action against crypto companies. 0:02:27.840 --> 0:02:30.799 Nathan now to the other major trial happening in New York, 0:02:30.880 --> 0:02:34.280 Donald Trump's two hundred and fifty million dollars civil fraud case. 0:02:34.400 --> 0:02:37.160 The former president's two oldest sons took turns on the 0:02:37.160 --> 0:02:42.399 witness stand, denying any role in preparing their company's financial records. Afterward, 0:02:42.400 --> 0:02:45.119 Donald Trump Junior addressed reporters. 0:02:44.800 --> 0:02:48.440 Before even having a day in court, I'm apparently guilty 0:02:49.280 --> 0:02:55.239 uh a fraud for relying on my accountants to do 0:02:55.760 --> 0:02:58.120 wait for it, accounting. 0:02:58.639 --> 0:03:02.000 Donald Trump Junior's brother is set to continue testifying today. 0:03:02.080 --> 0:03:05.080 Their sister, Evonka, will take this stand next week. She 0:03:05.160 --> 0:03:07.400 lost an appeal to delay her testimony. 0:03:07.520 --> 0:03:09.080 Well, Karen, we now turn to the war in the 0:03:09.080 --> 0:03:11.880 Middle East. Secretary of State Anthony Blinken is back in 0:03:11.960 --> 0:03:15.240 Tel Aviv. We're determined that this conflict not spread, and 0:03:15.360 --> 0:03:18.880 we'll be talking to both the Israeli government partners in 0:03:18.919 --> 0:03:21.440 the region about what all of us are doing to. 0:03:21.400 --> 0:03:22.320 Prevent that from happening. 0:03:22.400 --> 0:03:24.800 When Secretary of State b Lincoln's arrival comes as ground 0:03:24.840 --> 0:03:28.320 operations continue in Gaza. The Hamas run Health Ministry says 0:03:28.360 --> 0:03:30.919 more than nine thousand Palestinians have died in the fighting. 0:03:31.160 --> 0:03:33.760 Israel says seventeen of its soldiers have been killed. 0:03:34.160 --> 0:03:36.760 Well, Nathan, the House has passed the Aid for Israel bill, 0:03:36.800 --> 0:03:40.800 but Bloomberg's ad Baxter reports and may have a troubled future. 0:03:41.320 --> 0:03:43.760 This is a victory for House Speaker Mike Johnson, but 0:03:43.800 --> 0:03:45.840 it looks as if it is dead to become law. 0:03:46.280 --> 0:03:50.080 Senate majority leader Chuck Schumer has been saying taking funding 0:03:50.280 --> 0:03:54.440 from IRS enforcement is a bad idea, and President Biden 0:03:54.520 --> 0:03:56.480 is out saying if it were to hit his desk, 0:03:56.920 --> 0:04:00.200 he would not sign it. House Speaker Johnson says it 0:04:00.240 --> 0:04:01.200 will get done. 0:04:01.280 --> 0:04:03.280 There is absolutely no equivocation here. 0:04:03.680 --> 0:04:04.440 We have to stay with. 0:04:04.480 --> 0:04:07.880 Israel, and Republican Congressman Tom Cole says there are different 0:04:07.880 --> 0:04:09.800 paths to get the aid. We have a lot of 0:04:09.840 --> 0:04:12.160 unspent money. We ought to use that toward a more 0:04:12.160 --> 0:04:14.480 important purpose and that's his real So the issue is 0:04:14.520 --> 0:04:17.440 far from settled at Baxter Bloomberg Radio. 0:04:17.279 --> 0:04:19.719 Okay, and thank you. Turning the market. Shares of Apple 0:04:19.720 --> 0:04:22.440 are down more than three percent. The world's most valuable 0:04:22.440 --> 0:04:25.239 company reported its fourth straight sales decline and its warning 0:04:25.240 --> 0:04:27.640 holiday revenue will be about the same as last year. 0:04:27.760 --> 0:04:30.799 Angelo Zeno, as senior equity analyst, it's CFRAA research. 0:04:31.279 --> 0:04:34.000 It's not the most favorable landscape out there for PCs, 0:04:34.120 --> 0:04:37.920 even though the broader PC landscape appears to have found 0:04:37.920 --> 0:04:40.520 some sort of putting for the time being. But at 0:04:40.520 --> 0:04:43.200 the end of the day, the consumer landscape is still 0:04:43.360 --> 0:04:44.320 very challenging in. 0:04:44.320 --> 0:04:47.880 Nature CFAs angelo Zino says. The results also suggest apples 0:04:47.880 --> 0:04:49.360 facing a deceleration in China. 0:04:49.760 --> 0:04:51.760 Well Nathan O their stocks on the move this morning. 0:04:51.839 --> 0:04:54.839 Shares of DraftKings up seven percent. The sports betting operator 0:04:54.880 --> 0:04:58.560 reported sales and player numbers that beat analyst expectations, Block 0:04:58.640 --> 0:05:01.400 shares surging more than a ten percent. The Payments Giant 0:05:01.440 --> 0:05:04.400 run by Jack Dorsey, again boosting its profit forecast for 0:05:04.440 --> 0:05:06.920 the year, and shares a Booking dropping as much as 0:05:06.960 --> 0:05:09.880 seven percent in light trading. The company formerly known as 0:05:09.920 --> 0:05:12.520 Price Lines as travel demand had been diminished by the 0:05:12.560 --> 0:05:13.520 Israel Hamas war. 0:05:13.800 --> 0:05:16.240 On the economic front, karen a busy week concludes with 0:05:16.320 --> 0:05:18.680 the October Jobs report, a preview of that now from 0:05:18.720 --> 0:05:20.480 Bloomberg's Michael McKee. 0:05:20.120 --> 0:05:22.479 FED chair j Powell says a tight labor market could 0:05:22.560 --> 0:05:25.400 lead to another rate move, which means markets will parse 0:05:25.440 --> 0:05:28.320 the October jobs report trying to determine what it signals. 0:05:28.760 --> 0:05:31.440 Is hiring still much stronger than what's needed to absorb 0:05:31.440 --> 0:05:34.960 an increasing labor force. Have higher interest rates led companies 0:05:35.000 --> 0:05:37.840 to pull back on hiring or even start letting people go. 0:05:38.360 --> 0:05:41.479 Our companies still paying up to attract workers, While the 0:05:41.520 --> 0:05:44.040 Fed we'll also see the November payrolls report before its 0:05:44.080 --> 0:05:46.800 next meeting. Powell says it will take several months of 0:05:46.880 --> 0:05:52.880 data to make any decisions. Michael McKee, Bloomberg Radio. 0:05:53.560 --> 0:05:55.279 All right, Nathan, thank you. It is time now for 0:05:55.320 --> 0:05:57.120 a look at some of the other stories making news 0:05:57.120 --> 0:05:59.360 around the world, and for that we're joined by Bloomberg's 0:05:59.440 --> 0:06:01.279 John Tucker, John, good morning. 0:06:01.440 --> 0:06:04.719 And Karen. Something maybe rotten in the Big Apple. The 0:06:04.760 --> 0:06:08.360 mayor's fundraising campaign is under investigation. Let's get more on 0:06:08.400 --> 0:06:10.320 this report from Bloomberg's Michael Barr. 0:06:10.520 --> 0:06:13.040 Mayor Adams ditched a White House meeting on the migrant 0:06:13.080 --> 0:06:16.000 crisis and flew back to the city. The mayor explaining 0:06:16.040 --> 0:06:17.240 his abrupt return. 0:06:17.080 --> 0:06:21.440 But you probably heard the reports involved in one of 0:06:21.480 --> 0:06:22.760 my campaign staffers. 0:06:22.800 --> 0:06:26.599 The staffer is lead fundraiser, twenty five year old Brianna Suggs, 0:06:26.839 --> 0:06:30.240 whose Brooklyn home was raided by the FBI. Along with 0:06:30.320 --> 0:06:34.280 the officers of a New York construction firm called KSK, 0:06:34.880 --> 0:06:38.840 it made fourteen thousand dollars in campaign contributions. The investigation 0:06:38.960 --> 0:06:42.280 is looking into whether the company, along with Turkish nationals, 0:06:42.520 --> 0:06:46.479 made in proper donations in New York. Michael Barr Bloomberg. 0:06:46.120 --> 0:06:48.440 Radio Adams was supposed to be with the mayors of 0:06:48.520 --> 0:06:51.719 Chicago and Denver. It asked Congress to approve President Biden's 0:06:51.800 --> 0:06:54.640 request at one point four billion dollars to help the 0:06:54.680 --> 0:06:58.560 cities and states in the migrant crisis. Denver Mayor Mike Johnston, 0:06:58.760 --> 0:07:00.240 we're both of. 0:07:00.160 --> 0:07:00.960 What wey've done. 0:07:01.040 --> 0:07:03.880 It's critical for us that this package passes over the 0:07:03.880 --> 0:07:05.960 next several weeks to get funding to cities, otherwise we'll 0:07:05.960 --> 0:07:07.120 have catastrophic impacts. 0:07:07.240 --> 0:07:09.520 The Democratic Mayor's trying to put pressure on the blinded 0:07:09.520 --> 0:07:14.120 administration to address the humanitarian crisis caused by record crossings 0:07:14.160 --> 0:07:17.000 at the southern border. The Senate had voted ninety five 0:07:17.040 --> 0:07:19.520 to one to confirm Admiral Linda Franchetti to be the 0:07:19.600 --> 0:07:22.760 next Chief of Naval Operations, making her the first woman 0:07:22.760 --> 0:07:25.760 to be a US military service chief. Set of Majority 0:07:25.840 --> 0:07:28.280 Leader Chuck Schumer and. 0:07:28.280 --> 0:07:31.960 Admiral Fanchette is an exceptional leader with a distinguished career 0:07:32.040 --> 0:07:36.040 serving our nation. I'm confident she has the experience, the skills, 0:07:36.040 --> 0:07:39.400 and the vision to succeed as the US Navy's top 0:07:39.760 --> 0:07:41.880 naval as the US Navy's top officer. 0:07:41.960 --> 0:07:45.680 Franchetti's confirmation comes amid a temporary break from a blockade 0:07:45.680 --> 0:07:50.720 by Senator Tommy Tubberville stalling hundreds of military promotions. Riding 0:07:50.760 --> 0:07:55.040 high on historic contract wins against Detroit's automakers, UAWT President 0:07:55.080 --> 0:07:57.880 Sean Fain he is confident he can now take on 0:07:58.040 --> 0:08:01.880 Tesla and it's anti union chief Elon Musk. In an 0:08:01.960 --> 0:08:05.480 interview with Bloomberg yesterday, Fan said we can beat anybody 0:08:05.760 --> 0:08:08.200 global news twenty four hours a day and whenever you 0:08:08.280 --> 0:08:11.240 want it with Bloomberg News. Now, I'm John Tucker, and 0:08:11.440 --> 0:08:12.560 this is Bloomberg. 0:08:12.640 --> 0:08:14.640 Karen, all right, John, thanks, so we bring you news 0:08:14.640 --> 0:08:17.240 throughout the day here on Bloomberg Radio. But now you 0:08:17.240 --> 0:08:20.160 can get the latest news on demand whenever you want it. 0:08:20.480 --> 0:08:23.400 Subscribe to Bloomberg News Now to get the latest headlines 0:08:23.440 --> 0:08:26.840 at the click of a button. Get informed on your schedule. 0:08:27.120 --> 0:08:29.960 You can listen and subscribe to Bloomberg News Now on 0:08:30.040 --> 0:08:33.760 the Bloomberg Business app, Bloomberg dot com plus Apple, Spotify, 0:08:33.840 --> 0:08:41.200 and anywhere else you get your podcasts. Time now for 0:08:41.200 --> 0:08:45.440 the Bloomberg Sports Update. Here's John stash Hour John Karen Weign. 0:08:45.400 --> 0:08:48.319 I'm in the NFL Underway with an AFC game in Pittsburgh. 0:08:48.360 --> 0:08:51.640 The Steelers and Titans were tied at ten, then at thirteen. 0:08:51.760 --> 0:08:54.640 Pittsburgh trailed in the fourth quarter. Ticket in the shotgun 0:08:54.760 --> 0:08:59.960 gets the snap looks right. Johnson White open tutop Pittsburgh. 0:09:00.360 --> 0:09:04.840 The Steelers bunched ninety two yards to take Tully. That's 0:09:04.920 --> 0:09:09.200 the day Johnson's first touchdown and won a couple season tests. 0:09:10.000 --> 0:09:13.079 Twenty Games TV had the calls. The Steelers beat the 0:09:13.120 --> 0:09:17.040 Titans twenty to sixteen. Pittsburgh's five and three Tennessee is 0:09:17.080 --> 0:09:20.839 three and five In Victor Weinberana's fifth NBA game, the 0:09:20.960 --> 0:09:24.760 Spurs rookie sensations scored thirty eight points. He had ten rebounds. 0:09:24.840 --> 0:09:28.600 Some highlight reel baskets as the San Antonio Spurs blew 0:09:28.679 --> 0:09:31.120 a twenty seven point lead but still beat Phoenix won 0:09:31.200 --> 0:09:33.800 thirty two to one twenty one. Philadelphia's three and one 0:09:33.880 --> 0:09:36.839 won by fifteen over Toronto. Joel Mbi scored twenty eight. 0:09:37.160 --> 0:09:39.440 The Pelicans are four to one. They played without Zion 0:09:39.520 --> 0:09:42.400 Williams from CJ. McCollums scored thirty three and win over Detroit. 0:09:42.760 --> 0:09:46.520 Orlando won by two at Utah Paalo Bankero scored thirty. 0:09:46.600 --> 0:09:49.439 The games tonight of the NBA marked the beginning of 0:09:49.480 --> 0:09:52.839 the NBA's in season tournament. The Bruins are nine to 0:09:52.880 --> 0:09:55.240 zhoin one. They beat Toronto three two in a shootout. 0:09:55.760 --> 0:09:58.920 Nelson Cruz announced his retirement at age forty three. Played 0:09:59.000 --> 0:10:01.920 nineteen seasons. There eight different teams at four hundred and 0:10:02.000 --> 0:10:05.920 sixty four home runs as expected World Series ratings, the 0:10:06.040 --> 0:10:09.880 lowest ever one hundred and thirty baseball players will be 0:10:09.960 --> 0:10:13.640 free agents. Heading the list show AO Time John Stanshaur 0:10:13.679 --> 0:10:14.880 Bloomberg sports. 0:10:17.240 --> 0:10:20.200 From coast to coast, from New York to San Francisco, 0:10:20.559 --> 0:10:25.199 Boston to Washington, DC, nationwide on Syrias Exam. The Bloomberg 0:10:25.280 --> 0:10:29.360 Business app in Bloomberg dot Com. This is Bloomberg Daybreak. 0:10:30.440 --> 0:10:30.880 Good morning. 0:10:30.920 --> 0:10:34.679 I'm Nathan Hager. Guilty on all counts. After a month 0:10:34.760 --> 0:10:38.040 long trial, Sam Bankman Freed is convicted in one of 0:10:38.040 --> 0:10:41.160 the biggest cases of financial fraud in decades over the 0:10:41.240 --> 0:10:45.520 collapse of his FTX crypto empire. For more reaction to 0:10:45.679 --> 0:10:48.120 this outcome, we are joined now by Bloomberg Law host 0:10:48.640 --> 0:10:51.160 June Grosso. It's good to have you back with us 0:10:51.360 --> 0:10:53.880 this morning. Of course, this came after more than fifteen 0:10:54.000 --> 0:10:56.760 days of testimony that this jury heard. In the end, 0:10:56.800 --> 0:11:00.319 though it did take only about five hours for those 0:11:00.440 --> 0:11:03.640 jurors to come back with a verdict. Your thoughts, Yeah, 0:11:03.960 --> 0:11:04.480 it was a. 0:11:04.679 --> 0:11:08.480 Very quick verdict. I think that the evidence of this 0:11:08.760 --> 0:11:14.719 case was overwhelming. The prosecution had not only documents that 0:11:15.040 --> 0:11:19.040 they could present, but they also had three insiders, three 0:11:19.160 --> 0:11:23.439 witnesses who were close friends of Bankment Freed, one a 0:11:24.000 --> 0:11:28.479 former girlfriend of his, who were in on the process, 0:11:28.760 --> 0:11:32.960 in on what happened, and they testified, and their testimony 0:11:33.200 --> 0:11:39.040 was very you know, conclusive, and the cross examinations really 0:11:39.160 --> 0:11:43.160 didn't expose many holds in their testimony. And you also 0:11:43.280 --> 0:11:46.199 had the fact that Sam bankmin Freed took the stand, 0:11:46.840 --> 0:11:49.719 and when a defendant takes the stand, the focus for 0:11:49.840 --> 0:11:54.240 the jury then becomes the credibility of that defendant. And 0:11:54.400 --> 0:11:59.280 while he did pretty well on direct examination, on cross examination, 0:11:59.400 --> 0:12:02.920 the cross exit nomination was just withering and he said 0:12:03.200 --> 0:12:06.840 I don't know, or words to that effect more than 0:12:06.880 --> 0:12:10.200 a hundred times. So I think that in this case, 0:12:11.080 --> 0:12:14.640 he's taking the stand, which was a risky move. Everyone 0:12:14.760 --> 0:12:16.800 knows that it's a risky move for a defendant to 0:12:16.840 --> 0:12:19.120 take the stand, and it worked against him. 0:12:19.200 --> 0:12:23.760 Here, was that the biggest mistake that Sam Bankman Freed 0:12:23.920 --> 0:12:27.800 made to take the stand? Or is there something more 0:12:27.880 --> 0:12:30.160 that he could have done to try to rebut that 0:12:30.280 --> 0:12:33.120 testimony from as you say, what used to be his 0:12:33.480 --> 0:12:35.280 closest friends, his inner circle. 0:12:35.920 --> 0:12:38.240 Well, you know, it's hard to say. I don't want 0:12:38.240 --> 0:12:41.360 to characterize it as a mistake really because I don't 0:12:41.440 --> 0:12:45.000 know that he had any other choice. The evidence against him, 0:12:45.040 --> 0:12:48.680 as I said, was building, building, building. He had those 0:12:48.960 --> 0:12:53.520 those witnesses who turned against him, and really, what else 0:12:53.559 --> 0:12:56.120 could he have done but take the stand. He really 0:12:56.200 --> 0:12:59.480 had no other recourse. It was sort of forced on 0:12:59.600 --> 0:13:02.400 him as the trial was going on, the question will 0:13:02.440 --> 0:13:06.040 he take the stand or not. And the analysis was, well, 0:13:06.360 --> 0:13:09.160 he has the kind of personality to want to take 0:13:09.240 --> 0:13:11.000 the stand. I mean, look at all the times he's 0:13:11.120 --> 0:13:15.040 talked in the media, but everyone knew that on cross 0:13:15.120 --> 0:13:18.920 examination he was going to be confronted with not only 0:13:19.040 --> 0:13:23.160 the testimony of the three people who were closest to 0:13:23.280 --> 0:13:27.319 him at FTX and Alima Research who turned on him, 0:13:27.720 --> 0:13:31.400 but also all the statements that he made, all the 0:13:31.520 --> 0:13:36.800 times he talked to the media about FTX after the bankruptcy. 0:13:37.440 --> 0:13:40.439 So but what else could he do? It was it 0:13:40.559 --> 0:13:42.480 was a hail Mary pass and. 0:13:43.000 --> 0:13:43.520 He took it. 0:13:43.760 --> 0:13:47.840 But you know, the choice was really there wasn't really 0:13:47.960 --> 0:13:50.800 wasn't much choice because it was so overwhelming at that 0:13:51.000 --> 0:13:54.240 point that you know, he had to take the chance. 0:13:55.200 --> 0:13:58.120 And there was, as you mentioned, so much overwhelming testimony 0:13:58.480 --> 0:14:02.720 against him before the standard. Even before that testimony, I mean, 0:14:02.800 --> 0:14:06.679 he lost a number of pre trial motions that kept 0:14:06.760 --> 0:14:09.240 him from calling expert witnesses. And of course there was 0:14:09.320 --> 0:14:12.240 that moment even before he was allowed to testify before 0:14:12.280 --> 0:14:14.840 a jury, where he got on the stand in front 0:14:14.840 --> 0:14:18.400 of the judge to argue for being allowed to testify 0:14:18.480 --> 0:14:20.800 about advice from his lawyers. So I mean, he had 0:14:20.840 --> 0:14:23.080 a number of hands tied behind his back, didn't he. 0:14:24.000 --> 0:14:27.360 Yeah, I think you know so many of the motions, 0:14:27.600 --> 0:14:30.600 every big one that I can think of. The judge 0:14:30.680 --> 0:14:33.920 ruled against him, and in particular, he was on the stand, 0:14:33.960 --> 0:14:38.840 as you mentioned, about three hours testifying before the judge, 0:14:39.960 --> 0:14:42.480 so the judge could decide whether or not he could 0:14:42.720 --> 0:14:45.480 get use an advice of council defense and that was 0:14:45.560 --> 0:14:49.120 really critical to his defense his lawyers, and he wanted 0:14:49.200 --> 0:14:52.080 to say that what he did he did because he 0:14:52.240 --> 0:14:55.000 was relying on the advice of his attorneys, and the 0:14:55.160 --> 0:14:57.360 judge said that he could not do that. I mean, 0:14:57.400 --> 0:15:00.240 the judge even ruled before trial that they couldn't use that, 0:15:01.120 --> 0:15:04.360 they couldn't talk about that in their opening statements to 0:15:04.480 --> 0:15:07.880 the jury. And then then he had those three hours 0:15:07.960 --> 0:15:11.680 on the stands where the judge decided that he couldn't 0:15:11.760 --> 0:15:13.960 use that and he couldn't talk about that in front 0:15:14.000 --> 0:15:16.120 of the jury, and that was really a hit on 0:15:16.280 --> 0:15:19.160 his defense. And if you go back, I mean even 0:15:19.280 --> 0:15:22.440 before the trial, the judge, as you mentioned, said that 0:15:22.520 --> 0:15:26.200 he couldn't use expert witnesses, and the judge threw him 0:15:26.240 --> 0:15:30.560 into jail after he had communicated with the press, and 0:15:31.240 --> 0:15:33.360 that was really a surprise too, because he had a 0:15:34.080 --> 0:15:37.880 huge bail package and the defense was coming in to 0:15:38.320 --> 0:15:42.240 agree that day to a gag order. Instead, the judge 0:15:42.320 --> 0:15:44.840 decided that he was going to throw him into jail 0:15:45.280 --> 0:15:47.920 weeks before the trial, and that really puts a strain 0:15:48.280 --> 0:15:51.520 on the defense in more ways than one. I mean, 0:15:51.600 --> 0:15:55.760 not only did he not have his adderall when he 0:15:55.920 --> 0:15:57.800 was in jail, not have the right dose of it, 0:15:58.200 --> 0:16:00.720 but he's a vegan and he didn't get the kind 0:16:00.760 --> 0:16:03.720 of food he eats. He didn't get the kind of 0:16:04.520 --> 0:16:08.920 food at the Brooklyn Detention Center, so everyone saw that 0:16:09.000 --> 0:16:10.920 he lost a lot of weight when it came to 0:16:11.000 --> 0:16:13.920 the courtroom. But more than that, it's very difficult to 0:16:14.000 --> 0:16:18.040 prepare for trial when you're behind bars and your lawyer 0:16:18.160 --> 0:16:21.000 has to make appointments to meet you, and you don't 0:16:21.040 --> 0:16:24.640 have access to all the documents and you know, the 0:16:24.760 --> 0:16:27.520 internet and the things you need. So it really was 0:16:27.560 --> 0:16:30.400 an uphill battle for him from the very beginning. 0:16:31.520 --> 0:16:33.600 And so we've had this uphill battle go on for 0:16:33.800 --> 0:16:38.000 just about a month. After a relatively quick jury decision, 0:16:38.640 --> 0:16:42.160 we are expecting that Sam Bankminfried and his lawyers are 0:16:42.240 --> 0:16:44.800 going to appeal this verdict. How do you expect that 0:16:44.960 --> 0:16:45.160 to go? 0:16:45.360 --> 0:16:49.160 Now, Well, you know, they have a lot of issues 0:16:49.520 --> 0:16:51.440 that they can appeal on, and they're the ones that 0:16:51.520 --> 0:16:54.920 I was just talking about, the judge turning down the 0:16:55.000 --> 0:16:59.240 advice of counsel and the expert witnesses, and I'm sure 0:16:59.280 --> 0:17:02.200 they have a lot more from what happened at trial, 0:17:02.320 --> 0:17:06.960 but it's it's very difficult to get a conviction reversed 0:17:07.040 --> 0:17:10.920 on appeal. It happens, but it's very difficult because a 0:17:10.960 --> 0:17:14.440 lot of these decisions are what they say, you know, 0:17:14.600 --> 0:17:17.639 in the discretion of the judge, and the appellate court 0:17:18.240 --> 0:17:20.680 won't touch a lot of a lot of these decisions 0:17:20.720 --> 0:17:22.760 if they feel that it was in the discretion of 0:17:22.840 --> 0:17:26.760 the judge and that these may all fit in that category. 0:17:27.400 --> 0:17:30.040 So you know they will. They do have a lot 0:17:30.200 --> 0:17:32.359 to talk about, They do have a lot to raise 0:17:32.440 --> 0:17:36.320 on appeal, but you know, it's another uphill battle for him. 0:17:39.400 --> 0:17:42.280 This is Bloomberg day Break Today, your morning brief on 0:17:42.400 --> 0:17:45.879 the stories making news from Wall Street to Washington and beyond. 0:17:46.200 --> 0:17:48.920 Look for us on your podcast feat at six am 0:17:49.040 --> 0:17:52.680 Eastern each morning, on Apple, Spotify, and anywhere else you 0:17:52.800 --> 0:17:53.760 get your podcasts. 0:17:54.080 --> 0:17:56.760 You can also listen live each morning starting at five 0:17:56.800 --> 0:17:59.400 am Wall Street Time on Bloomberg eleven three to zero 0:17:59.440 --> 0:18:02.880 in New York, Bloomberg ninety nine one in Washington, Bloomberg 0:18:02.960 --> 0:18:05.960 one oh sixty one in Boston, and Bloomberg ninety sixty 0:18:06.080 --> 0:18:07.000 in San Francisco. 0:18:07.400 --> 0:18:10.520 Our flagship New York station is also available on your 0:18:10.600 --> 0:18:15.639 Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty. 0:18:15.760 --> 0:18:18.600 Plus listen coast to coast on the Bloomberg Business app, 0:18:18.720 --> 0:18:22.520 serious XM Channel one nineteen, the iHeartRadio app, and on 0:18:22.640 --> 0:18:26.080 Bloomberg dot com. I'm Nathan Hager and I'm Karen Moscow. 0:18:26.320 --> 0:18:29.040 Join us again tomorrow morning for all the news you 0:18:29.200 --> 0:18:32.360 need to start your day right here on Bloomberg Daybreak