Government Shutdown Averted; Gaza Telecom Services; AI Battle with China;
On today's podcast:
1) President Joe Biden signed a stopgap bill to extend government funding into early 2024, averting a government shutdown for now but kicking a politically-divisive debate over federal spending into a presidential election year.
2) Gaza’s telecommunications services stopped Thursday after providing companies said the fuel used for generators had been depleted, the United Nations Office for the Coordination of Humanitarian Affairs said. Syria’s aerial defenses intercepted some Israeli missiles that were fired against targets in Damascus, state-run Sana news agency reported.
3) Alphabet Inc. Chief Executive Officer Sundar Pichai said he expects China to be “at the forefront” of artificial intelligence, and said it’s important for the US to collaborate with the Asian nation on both regulation and innovation.
4) Embattled New York Republican George Santos announced he will not run for reelection to his seat in the US House. The news came just after the GOP chairman of the House’s ethics panel called Thursday for Santos’s expulsion following a committee investigation that found “substantial evidence” the New York Republican violated federal criminal laws.
5) Cincinnati Bengals lose QB Joe Burrow with sprained wrist in loss to Baltimore Ravens. Ravens TE Mark Andrews is also injured.
Full transcript:
Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today. President Biden has ended the immediate threat of a government shutdown. He has signed a temporary spending bill that extends government funding into early next year. Bloomberg's Amy Morris has the details from Washington. President Biden signed the legislation yesterday while in California for a summit of APEC leaders. The bill maintains existing funding levels and pushes a fight over the federal budget into the new year. When Housublicans say they will push for stiff spending cuts. It splits the deadlines for passing full year appropriations bills into two days January nineteenth for some federal agencies February second for others. This short term package allows lawmakers to regroup over the Thanksgiving holiday while talks continue on spending in policy agreements in Washington. I maye more as Bloomberg Radio, Sorry, Amy, thanks by the stopgap bill does not include funding for Ukraine and Israel. In fact, new usaid for Ukraine risks slipping to mid December and maybe longer, casting doubt on Washington's ability to keep up the flow of weapons that both the Biden administration and the Ukrainian governments say is vital as soon as Congress could complete negotiations and pass new Ukraine assistance his mid December, nearly two months after President Joe Biden first requested sixty one billion dollars for the country in its war against Russia. Well, now, Karen, let's turn to the latest on the war in the Middle East. Israeli Prime Minister Benjamin Natanyahu is defending his country's raid on the Alshifa Hospital in Gaza City. He says, Israeli troops uncovered a Hamas command center underneath the facility. We had concrete evidence that there were terrorists chieftains and terrests. There are terrorists minions in the hospital, and in fact they fled as our forces approached. They fled. That's why we had no firefight. We entered that hospital with Arabic speaking Israeli doctors with incubators and we had no firefight. But Hamas was using the patients in that hospital as a human shield. Prime Minister n Antanyahu spoke on the CBS Evening News. Meanwhile, the Israeli military says it has taken control of Gaza's harbor. People in the southern city of Conyunis say Israel has dropped leaflets telling them to seek shelter and sirius as it's intercepted some Israeli missiles aimed at targets in Damascus. Well back in the U, asked Nathan. The Asia Pacific Economic Cooperation some it is wrapping up in San Francisco, and we're learning more about President Biden's deal with China's Sheshin Ping to crack down on Fentanel. The White House agreed to remove a Chinese organization accused of human rights abuses from its sanctions list change for Beijing's WHO operation about an administration official tells Bloomberg taking the Institute of Forensic Science off the Commerce Department's entity list was the only way for the US to make progress on the Fentandel crisis, and at the APEX Summit, Karen the CEO of Alphabet, said he expects China to be at the cutting edge of artificial intelligence development. Speaking with Bloomberg, Soon Darpshai warned the world's two biggest economies will have to work together on developing a framework for AI. My senses, there is no way you make progress over the long term without China and the US deeply talking to each other on something like AI. So I think that has got to be an integral part of how you make progress. So I think I'm glad to see it, and you know, we have to lay the foundations. The good thing is we are still in early days of the technology. Alphabet CEO Soon Darpuchai's comments come after business titans including Apples, Tim Cook, and Black Rocks Larry Fink, attended dinner with China's president on the sidelines of the APEC summit. Well, Nathan, we're seeing fall out this morning from Elon Musk's endorsement of an anti semitic social media post. A Tesla investor is calling for must to resign, and IBM has now suspended its advertising on X because of the proximity of its ads to Nazi posts. Bloomberg's Ed Baxter has the story. This comes amidst a swirl of controversy surrounding X and Elon Musk. In the past couple of days, watchdog group Media Matters reported out that IBM, Apple Oracle, Exfanity, and Bravo all had a placement. IBM opted off, saying IBM has zero tolerance for hate speech and discrimination. Meanwhile, the White House has reacted to a Musk post so that it says is anti semitic. NC spokesman John Kirby, we certainly abhorror comments that are anti Semitic in tone and certainly don't associate ourselves with the comment. Musk endorsed a post that said the Jewish community pushed hatred toward whites in San Francisco. I'm at Baxter Bloomberg Radio, okay, and thank you. Moving to mark It's now we're watching shares of applied materials in the pre market. They're down more than seven percent. Reuter's is reporting the largest maker of chip making machinery in the country is facing a criminal investigation for allegedly violating export restrictions to China. The report says the Justice Departments looking at whether Applied Materials sold hundreds of millions of dollars of equipment without the proper licenses. And Nathan, the escalating fight between the US and China, where technological dominance has triggered one of the most stunning reversals of corporate strategy yet. Ali Baba Group has walked back plans to spin off in list it's eleven billion dollar cloud business. Ali Baba shares dropped nine percent yesterday, wiping out more than twenty billion of market value. On the flip side, Karen Watching shares of Gap they are hired by more than eighteen percent. The retailer reported third quarter profit that exceeded forecast. Same store sales fell for a fourth straight quarter, but that decline was less than expected. Stronger results at Old Navy, GAP's biggest brand offset weakness at Athleta and Banana Republic. Crude oil has collapsed into a bear market Nathan. It's down twenty percent from its September high. CRUs run of four straight weekly decline so long as losing streak since May has come despite collective and voluntary supply cuts by the Organization of petroleum exporting Countries and its allies. The losses have also been embedded by the evaporation of an Israel Hamas war risk premium as fears the conflict would expand and disrupt oil supplies have so far not materialized. And it's time now for a look at some other stories making news around the world, and for that we're joined by Bloomberg's Amy Morris. Amy, Good morning, Good morning, Karen. The pressure is building for New York Congressman George Santos to resign or face expulsion. It follows a scathing House Ethics Committee report. Bloomberg's Nancy Lyons has that story. Committee Chairman Michael Guest says the evidence uncovered in the House investigation is more than sufficient to warrant punishment, and he plans to file an expulsion resolution. Wisconsin Republican Congressman Brian stone File tells Bloomberg's sound on the findings are alarming. The illegal actions that are set forward in this report are incredibly concerning. The report alleged Santos used campaign money to pay off his personal bills and to make luxury purchases. Santos responded to the report saying he would not run for reelection in Washington. Nancy lyons Bloomberg Radio and that expulsion resolution Nancy was talking about is expected to be filed by nine o'clock this morning in Washington. A New York appeals court says the gag orders imposed on Donald Trump by the judge in the state's civil fraud trial against him are unconstitutional, and the restrictions were put on hold pending for their arguments. The decision is a major win for Trump, who has publicly lambasted the judge overseeing the case and accused him of frampant bias. This is just one of six trials Trump is facing as he seeks re election. California officials say a section of Interstate ten in Los Angeles that was damaged in a fire last week will reopen earlier then expected. Governor Gavin Newsom's said the mile long stretch of interstate will be open to traffic again weeks ahead of time after the state doubled the crews working on those repairs. One thing we can guarantee you is we will be opened five lanes in both directions at the latest Tuesday of next week. Fire officials say the fire was deliberately set in an arson investigation is ongoing. Secretary of State Antony Blincoln yesterday signed a civil nuclear cooperation agreement with the Philippines. At the signing ceremony, Secretary Blincoln said it is part of the US support for clean energy projects there with the Philippines leadership, we're also working together to develop a nuclear energy sector in their country to fuel a reliable, secure, and affordable clean energy future. The agreement allows the US to legally export nuclear equipment and material to the Philippines for peaceful uses. Global news twenty four hours a day and whenever you want it with Bloomberg News Now. I'm Maybe Morris and this is Bloomberg Karen, all right, Amy, thank you well. We do bring you news throughout the day right here on Bloomberg. But now, as Amy said, you can get the latest news on demand whenever you want it. To subscribe to Bloomberg News Now to get the latest headlines of 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 apples, Spotify, and anywhere else you get your podcasts. It is time now for the Bloomberg Sports Update, and here's John stash Hour, John Karen. Big game in the AFC North the kickoff week eleven the Bengals and the Ravens. They both had four game industries come to an end this past Sunday. All the More started things off with a seventy five hour touchdown drive. The Ravens then trailed in the second quarters. Edwards in the backfield. Lamarta throw fires down the middle, It's deflected at part, have a reflection Milsan Hagalore twenty fifteen come bo. Heflected for six. Hagle a deflection rave into the end zone Wbal. About a minute a half later, another Lamar Jackson TD passed. The Ravens beat the Bengals thirty four to twenty. Baltimore's eight and three and in first place. Cincinnati is just five and five and in the last place NBA and Miami. They he won their seventh in a row. Jemmy Butler scored thirty six in a win over Brooklyn. Oklahoma City made it five to last six, winning one twenty eight one to nine at Golden State. The Warriors have lost five in a row. They're just one and five at home. They went thirty three at and eight at home. Last year. They rode out the injured Steph Curry and without the suspended Draymond Green. MLB owners approved thirty to nothing in the move of the Oakland A's to Las Vegas, and they waive the relocation fee. The A's will be in Oakland in twenty twenty four, but the plan is to beat a new stadium in Vegas by twenty twenty eight. It's unclear where they might be playing in between. It's the first time an MLB team has moved in Montreal. Expos went to Washington in two thousand and five. Baseball has given the twenty twenty five All Star Game to Atlanta, who had it taken away after that voting law was passed in twenty twenty one. John Stasha our Bloomberg Sport from coast to coast, from New York to San Francisco, Boston to Washington, d C. Nationwide on SYRIASXAM, the Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg daybreak, Good morning, I'm Nathan Hager. China will be at the forefront of artificial intelligence. That's what the CEO of Alphabet soon Dar Pashai, is saying. He says it is important for the US to collaborate with China on both regulation and innovation when it comes to AI. Pieshai, along with executives from Microsoft, City Group and Tesla, have been meeting with Chinese President Shi Jinping and US President Joe Biden at the APEX summit in San Francisco. After those meetings, the Alphabet CEO joined Bloomberg's Emily Chang and told her the world's two biggest economies do need to work together on AI regulation and development. It's not going to be easy, but I would start from this PREMI is that AI will proliferate, So this is not the inherent nature of software. AI advances will get out to in all countries, and so it is naturally the kind of technology. I don't think there's any unilateral safety to be had. We all have a shared incentive to solve for safety. You know, you could have AI go wrong in one country that will impact every other country. So in some ways, it's like climate change. In the planet. We all share a planet. I think that's true for AI. So now that you know that that will be true, I think you have to start building the frameworks globally to make progress. I've seen encouraging progress when the G seven happened in Hiroshima, I think it was a good start. You've seen more progress the Uki summit last week. The administration here, the White House has been leading the way as well, and I saw good encouraging announcements even yesterday for US in China to start having a dialogue on AI, well, that was my next question. Should Chinese regulators be part of this conversation on AI regulation? My sense is there is no way you make progress over the long term without China and the US deeply talking to each other on something like AI. So I think that has got to be an integral part of how you make progress. So I think I'm glad to see it. And you know, we have to lay the foundations. The good thing is we are still in early days of the technology, so laying the foundations now will allow us to work through the tough issues and build a common framework over time. How do you think AI? And obviously the US presidential election coming up as well. How do you think AI is going to further test election integrity? I think you know, over time, it's going to lower the barrier for creating you know, artificial information which may or may not matror what's happening in the real world, right, and that barrier will come down. So in this cat and mouse game, how do we amp up our defenses against that. We are in early stages, right. You know, we were one of the first companies to announce a water marketing technology for image generation. It's called Synthide, done by deep Mind, and we are providing API access to it. But all of us need to tackle it. These are areas where regulation will have to play a role, right. I think governments will have to overtime pass regulations about what is okay for you some of this synthetic content and so, which is why I think you have to think about it together. Open AI CEO Sam Mollman has said repeatedly he wants to know more about what's happening with AI in China. What do you know and what do you not know about where China is on AI. From what I can tell, they're making deep investments in AI. The scale of AI research talent in China. It's just simply astounding to see. So I think, you know, in some ways this question, China is going to be at the forefront of AI, and you know, I think that's a given. And so the question is how do we work over time, both for you know, other countries to make sure you're making progress in AI and over time, how do we develop the frameworks where you know, countries can coexist peacefully in a world in which AI will be you know, everywhere. You know, President Biden actually just said he doesn't see the USD coupling with China, but the world does seem to be on a path to two separate internets. Do we continue in that direction? And what does that mean? It's tough to say. You know, things go through in phases. I think we are definitely in a phase where there are more forces pulling it apart. But you know, inherently these technologies also facilitate easy exchange of information, so I think there are countervailing forces as well, So I think it's tough to predict. I do think information wants to flow freely by nature, So you know, my hope is over time, you know, thanks to couple back again. This is Bloomberg Daybreak today, your morning brief on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed 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 to one in Washington, Bloomberg one oh six to 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, seriusxmb 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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Bloomberg is now in your dashboard with Apple cart Play 0:00:03.200 --> 0:00:04.240 and Android Auto. 0:00:04.559 --> 0:00:07.160 Yeah, it's free. With the latest version of the Bloomberg 0:00:07.200 --> 0:00:07.800 Business App. 0:00:07.840 --> 0:00:11.959 Gives you access to every Bloomberg podcast, live audio feeds 0:00:12.000 --> 0:00:15.360 from Bloomberg Radio plus here the latest headlines is the 0:00:15.360 --> 0:00:17.720 click of a button with Bloomberg News Now. 0:00:17.800 --> 0:00:20.320 Now, it's the Bloomberg Business App. Get it on your 0:00:20.360 --> 0:00:23.200 phone in the Apple App Store or on Google Play. 0:00:23.640 --> 0:00:25.920 Just download the app, connect your phone to your car, 0:00:26.160 --> 0:00:29.920 and get started. It's presented by our sponsor, Interactive Brokers. 0:00:32.520 --> 0:00:35.680 Good morning, I'm Nathan Hager and I'm Karen Moscow. Here 0:00:35.720 --> 0:00:37.440 are the stories we're following today. 0:00:37.960 --> 0:00:41.440 President Biden has ended the immediate threat of a government shutdown. 0:00:41.479 --> 0:00:44.519 He has signed a temporary spending bill that extends government 0:00:44.520 --> 0:00:47.559 funding into early next year. Bloomberg's Amy Morris has the 0:00:47.560 --> 0:00:48.720 details from Washington. 0:00:49.159 --> 0:00:52.839 President Biden signed the legislation yesterday while in California for 0:00:52.920 --> 0:00:56.120 a summit of APEC leaders. The bill maintains existing funding 0:00:56.200 --> 0:00:58.560 levels and pushes a fight over the federal budget into 0:00:58.560 --> 0:01:01.440 the new year. When Housublicans say they will push for 0:01:01.560 --> 0:01:04.640 stiff spending cuts. It splits the deadlines for passing full 0:01:04.720 --> 0:01:08.200 year appropriations bills into two days January nineteenth for some 0:01:08.240 --> 0:01:12.240 federal agencies February second for others. This short term package 0:01:12.280 --> 0:01:16.119 allows lawmakers to regroup over the Thanksgiving holiday while talks 0:01:16.160 --> 0:01:19.560 continue on spending in policy agreements in Washington. I maye 0:01:19.600 --> 0:01:20.920 more as Bloomberg Radio. 0:01:20.959 --> 0:01:24.080 Sorry, Amy, thanks by the stopgap bill does not include 0:01:24.080 --> 0:01:27.080 funding for Ukraine and Israel. In fact, new usaid for 0:01:27.240 --> 0:01:31.160 Ukraine risks slipping to mid December and maybe longer, casting 0:01:31.200 --> 0:01:33.800 doubt on Washington's ability to keep up the flow of 0:01:33.840 --> 0:01:36.959 weapons that both the Biden administration and the Ukrainian governments 0:01:37.000 --> 0:01:40.440 say is vital as soon as Congress could complete negotiations 0:01:40.440 --> 0:01:43.920 and pass new Ukraine assistance his mid December, nearly two 0:01:43.920 --> 0:01:47.360 months after President Joe Biden first requested sixty one billion 0:01:47.400 --> 0:01:50.080 dollars for the country in its war against Russia. 0:01:50.280 --> 0:01:52.080 Well, now, Karen, let's turn to the latest on the 0:01:52.080 --> 0:01:55.520 war in the Middle East. Israeli Prime Minister Benjamin Natanyahu 0:01:55.600 --> 0:01:58.640 is defending his country's raid on the Alshifa Hospital in 0:01:58.680 --> 0:02:02.160 Gaza City. He says, Israeli troops uncovered a Hamas command 0:02:02.200 --> 0:02:03.840 center underneath the facility. 0:02:03.920 --> 0:02:08.200 We had concrete evidence that there were terrorists chieftains and terrests. 0:02:08.240 --> 0:02:11.200 There are terrorists minions in the hospital, and in fact 0:02:11.200 --> 0:02:13.080 they fled as our forces approached. 0:02:13.200 --> 0:02:13.720 They fled. 0:02:13.840 --> 0:02:16.760 That's why we had no firefight. We entered that hospital 0:02:17.000 --> 0:02:21.120 with Arabic speaking Israeli doctors with incubators and we had 0:02:21.120 --> 0:02:24.720 no firefight. But Hamas was using the patients in that 0:02:24.840 --> 0:02:26.239 hospital as a human shield. 0:02:26.520 --> 0:02:30.040 Prime Minister n Antanyahu spoke on the CBS Evening News. Meanwhile, 0:02:30.080 --> 0:02:33.239 the Israeli military says it has taken control of Gaza's harbor. 0:02:33.320 --> 0:02:36.040 People in the southern city of Conyunis say Israel has 0:02:36.120 --> 0:02:39.600 dropped leaflets telling them to seek shelter and sirius as 0:02:39.639 --> 0:02:43.040 it's intercepted some Israeli missiles aimed at targets in Damascus. 0:02:43.560 --> 0:02:45.760 Well back in the U, asked Nathan. The Asia Pacific 0:02:45.800 --> 0:02:49.000 Economic Cooperation some it is wrapping up in San Francisco, 0:02:49.080 --> 0:02:51.800 and we're learning more about President Biden's deal with China's 0:02:51.840 --> 0:02:54.600 Sheshin Ping to crack down on Fentanel. The White House 0:02:54.600 --> 0:02:57.880 agreed to remove a Chinese organization accused of human rights 0:02:57.880 --> 0:03:01.760 abuses from its sanctions list change for Beijing's WHO operation 0:03:02.240 --> 0:03:05.960 about an administration official tells Bloomberg taking the Institute of 0:03:06.000 --> 0:03:10.040 Forensic Science off the Commerce Department's entity list was the 0:03:10.080 --> 0:03:12.240 only way for the US to make progress on the 0:03:12.240 --> 0:03:13.639 Fentandel crisis, and. 0:03:13.560 --> 0:03:16.360 At the APEX Summit, Karen the CEO of Alphabet, said 0:03:16.400 --> 0:03:18.800 he expects China to be at the cutting edge of 0:03:18.960 --> 0:03:23.280 artificial intelligence development. Speaking with Bloomberg, Soon Darpshai warned the 0:03:23.280 --> 0:03:26.080 world's two biggest economies will have to work together on 0:03:26.200 --> 0:03:27.920 developing a framework for AI. 0:03:28.760 --> 0:03:31.880 My senses, there is no way you make progress over 0:03:31.919 --> 0:03:36.520 the long term without China and the US deeply talking 0:03:36.520 --> 0:03:38.640 to each other on something like AI. So I think 0:03:38.680 --> 0:03:40.600 that has got to be an integral part of how 0:03:40.640 --> 0:03:44.360 you make progress. So I think I'm glad to see it, 0:03:44.920 --> 0:03:47.520 and you know, we have to lay the foundations. The 0:03:47.520 --> 0:03:49.120 good thing is we are still in early days of 0:03:49.160 --> 0:03:50.160 the technology. 0:03:50.720 --> 0:03:54.880 Alphabet CEO Soon Darpuchai's comments come after business titans including Apples, 0:03:54.920 --> 0:03:57.680 Tim Cook, and Black Rocks Larry Fink, attended dinner with 0:03:57.800 --> 0:04:00.480 China's president on the sidelines of the APEC summit. 0:04:01.040 --> 0:04:03.560 Well, Nathan, we're seeing fall out this morning from Elon 0:04:03.640 --> 0:04:07.160 Musk's endorsement of an anti semitic social media post. A 0:04:07.280 --> 0:04:10.400 Tesla investor is calling for must to resign, and IBM 0:04:10.720 --> 0:04:13.880 has now suspended its advertising on X because of the 0:04:13.880 --> 0:04:17.800 proximity of its ads to Nazi posts. Bloomberg's Ed Baxter 0:04:17.880 --> 0:04:18.560 has the story. 0:04:19.240 --> 0:04:22.080 This comes amidst a swirl of controversy surrounding X and 0:04:22.120 --> 0:04:25.080 Elon Musk. In the past couple of days, watchdog group 0:04:25.160 --> 0:04:29.159 Media Matters reported out that IBM, Apple Oracle, Exfanity, and 0:04:29.200 --> 0:04:33.800 Bravo all had a placement. IBM opted off, saying IBM 0:04:33.880 --> 0:04:37.640 has zero tolerance for hate speech and discrimination. Meanwhile, the 0:04:37.640 --> 0:04:40.040 White House has reacted to a Musk post so that 0:04:40.120 --> 0:04:43.800 it says is anti semitic. NC spokesman John Kirby. 0:04:43.520 --> 0:04:47.400 We certainly abhorror comments that are anti Semitic in tone 0:04:47.440 --> 0:04:50.520 and certainly don't associate ourselves with the comment. 0:04:50.680 --> 0:04:53.679 Musk endorsed a post that said the Jewish community pushed 0:04:53.720 --> 0:04:58.720 hatred toward whites in San Francisco. I'm at Baxter Bloomberg Radio, okay, 0:04:58.800 --> 0:05:00.839 and thank you. Moving to mark It's now we're watching 0:05:00.880 --> 0:05:03.520 shares of applied materials in the pre market. They're down 0:05:03.600 --> 0:05:06.880 more than seven percent. Reuter's is reporting the largest maker 0:05:06.920 --> 0:05:09.400 of chip making machinery in the country is facing a 0:05:09.400 --> 0:05:14.000 criminal investigation for allegedly violating export restrictions to China. The 0:05:14.120 --> 0:05:17.240 report says the Justice Departments looking at whether Applied Materials 0:05:17.240 --> 0:05:19.800 sold hundreds of millions of dollars of equipment without the 0:05:19.839 --> 0:05:20.880 proper licenses. 0:05:21.440 --> 0:05:23.880 And Nathan, the escalating fight between the US and China, 0:05:23.920 --> 0:05:26.920 where technological dominance has triggered one of the most stunning 0:05:26.960 --> 0:05:30.640 reversals of corporate strategy yet. Ali Baba Group has walked 0:05:30.640 --> 0:05:33.080 back plans to spin off in list it's eleven billion 0:05:33.120 --> 0:05:36.880 dollar cloud business. Ali Baba shares dropped nine percent yesterday, 0:05:36.920 --> 0:05:39.960 wiping out more than twenty billion of market value. 0:05:40.040 --> 0:05:42.840 On the flip side, Karen Watching shares of Gap they 0:05:42.880 --> 0:05:46.200 are hired by more than eighteen percent. The retailer reported 0:05:46.240 --> 0:05:49.799 third quarter profit that exceeded forecast. Same store sales fell 0:05:49.839 --> 0:05:51.960 for a fourth straight quarter, but that decline was less 0:05:51.960 --> 0:05:55.479 than expected. Stronger results at Old Navy, GAP's biggest brand 0:05:55.560 --> 0:05:58.560 offset weakness at Athleta and Banana Republic. 0:05:59.440 --> 0:06:02.479 Crude oil has collapsed into a bear market Nathan. It's 0:06:02.480 --> 0:06:05.840 down twenty percent from its September high. CRUs run of 0:06:05.880 --> 0:06:08.560 four straight weekly decline so long as losing streak since 0:06:08.640 --> 0:06:12.440 May has come despite collective and voluntary supply cuts by 0:06:12.480 --> 0:06:16.080 the Organization of petroleum exporting Countries and its allies. The 0:06:16.120 --> 0:06:18.880 losses have also been embedded by the evaporation of an 0:06:18.960 --> 0:06:22.520 Israel Hamas war risk premium as fears the conflict would 0:06:22.560 --> 0:06:25.799 expand and disrupt oil supplies have so far not materialized. 0:06:29.440 --> 0:06:30.880 And it's time now for a look at some other 0:06:31.040 --> 0:06:33.240 stories making news around the world, and for that we're 0:06:33.279 --> 0:06:34.880 joined by Bloomberg's Amy Morris. 0:06:34.920 --> 0:06:38.120 Amy, Good morning, Good morning, Karen. The pressure is building 0:06:38.160 --> 0:06:41.880 for New York Congressman George Santos to resign or face expulsion. 0:06:42.200 --> 0:06:45.679 It follows a scathing House Ethics Committee report. Bloomberg's Nancy 0:06:45.760 --> 0:06:47.000 Lyons has that story. 0:06:47.120 --> 0:06:50.400 Committee Chairman Michael Guest says the evidence uncovered in the 0:06:50.440 --> 0:06:54.400 House investigation is more than sufficient to warrant punishment, and 0:06:54.440 --> 0:06:59.360 he plans to file an expulsion resolution. Wisconsin Republican Congressman 0:06:59.440 --> 0:07:03.280 Brian stone File tells Bloomberg's sound on the findings are alarming. 0:07:03.320 --> 0:07:06.240 The illegal actions that are set forward in this report 0:07:06.320 --> 0:07:07.760 are incredibly concerning. 0:07:07.960 --> 0:07:11.280 The report alleged Santos used campaign money to pay off 0:07:11.280 --> 0:07:15.760 his personal bills and to make luxury purchases. Santos responded 0:07:15.800 --> 0:07:18.360 to the report saying he would not run for reelection 0:07:18.960 --> 0:07:21.560 in Washington. Nancy lyons Bloomberg Radio and. 0:07:21.520 --> 0:07:24.920 That expulsion resolution Nancy was talking about is expected to 0:07:24.960 --> 0:07:28.040 be filed by nine o'clock this morning in Washington. A 0:07:28.080 --> 0:07:30.920 New York appeals court says the gag orders imposed on 0:07:31.040 --> 0:07:33.720 Donald Trump by the judge in the state's civil fraud 0:07:33.760 --> 0:07:37.160 trial against him are unconstitutional, and the restrictions were put 0:07:37.200 --> 0:07:40.160 on hold pending for their arguments. The decision is a 0:07:40.200 --> 0:07:43.200 major win for Trump, who has publicly lambasted the judge 0:07:43.360 --> 0:07:46.920 overseeing the case and accused him of frampant bias. This 0:07:47.040 --> 0:07:49.360 is just one of six trials Trump is facing as 0:07:49.360 --> 0:07:52.760 he seeks re election. California officials say a section of 0:07:52.800 --> 0:07:55.360 Interstate ten in Los Angeles that was damaged in a 0:07:55.400 --> 0:07:59.560 fire last week will reopen earlier then expected. Governor Gavin 0:07:59.640 --> 0:08:01.960 Newsom's said the mile long stretch of interstate will be 0:08:01.960 --> 0:08:04.720 open to traffic again weeks ahead of time after the 0:08:04.760 --> 0:08:07.280 state doubled the crews working on those repairs. 0:08:07.360 --> 0:08:10.080 One thing we can guarantee you is we will be 0:08:10.120 --> 0:08:14.480 opened five lanes in both directions at the latest Tuesday 0:08:14.760 --> 0:08:15.600 of next week. 0:08:15.960 --> 0:08:18.440 Fire officials say the fire was deliberately set in an 0:08:18.560 --> 0:08:22.880 arson investigation is ongoing. Secretary of State Antony Blincoln yesterday 0:08:22.920 --> 0:08:26.480 signed a civil nuclear cooperation agreement with the Philippines. At 0:08:26.520 --> 0:08:29.360 the signing ceremony, Secretary Blincoln said it is part of 0:08:29.400 --> 0:08:32.959 the US support for clean energy projects there with the. 0:08:32.880 --> 0:08:36.680 Philippines leadership, we're also working together to develop a nuclear 0:08:36.760 --> 0:08:40.000 energy sector in their country to fuel a reliable, secure, 0:08:40.440 --> 0:08:42.040 and affordable clean energy future. 0:08:43.160 --> 0:08:46.680 The agreement allows the US to legally export nuclear equipment 0:08:46.679 --> 0:08:49.960 and material to the Philippines for peaceful uses. Global news 0:08:49.960 --> 0:08:51.800 twenty four hours a day and whenever you want it 0:08:51.800 --> 0:08:54.440 with Bloomberg News Now. I'm Maybe Morris and this is 0:08:54.440 --> 0:08:55.679 Bloomberg Karen, all. 0:08:55.679 --> 0:08:57.520 Right, Amy, thank you well. We do bring you news 0:08:57.559 --> 0:09:01.199 throughout the day right here on Bloomberg. But now, as 0:09:01.240 --> 0:09:03.520 Amy said, you can get the latest news on demand 0:09:03.559 --> 0:09:07.360 whenever you want it. To subscribe to Bloomberg News Now 0:09:07.400 --> 0:09:09.600 to get the latest headlines of the click of a button. 0:09:09.880 --> 0:09:13.199 Get informed on your schedule. You can listen and subscribe 0:09:13.200 --> 0:09:16.600 to Bloomberg News Now on the Bloomberg Business app, Bloomberg 0:09:16.640 --> 0:09:20.320 dot Com plus apples, Spotify, and anywhere else you get 0:09:20.320 --> 0:09:27.800 your podcasts. It is time now for the Bloomberg Sports Update, 0:09:27.880 --> 0:09:30.199 and here's John stash Hour, John Karen. 0:09:30.200 --> 0:09:33.400 Big game in the AFC North the kickoff week eleven 0:09:33.440 --> 0:09:35.640 the Bengals and the Ravens. They both had four game 0:09:35.679 --> 0:09:38.120 industries come to an end this past Sunday. All the 0:09:38.160 --> 0:09:41.280 More started things off with a seventy five hour touchdown drive. 0:09:41.400 --> 0:09:43.480 The Ravens then trailed in the second quarters. 0:09:43.640 --> 0:09:46.040 Edwards in the backfield. Lamarta throw fires down the middle. 0:09:45.880 --> 0:09:48.439 It's deflected at part, have a reflection. 0:09:48.080 --> 0:09:50.959 Milsan Hagalore twenty fifteen come bo. 0:09:51.600 --> 0:09:55.560 Heflected for six. Hagle a deflection. 0:09:55.600 --> 0:09:58.559 Rave into the end zone Wbal. About a minute a 0:09:58.600 --> 0:10:01.880 half later, another Lamar Jackson TD passed. The Ravens beat 0:10:01.920 --> 0:10:04.880 the Bengals thirty four to twenty. Baltimore's eight and three 0:10:04.880 --> 0:10:08.040 and in first place. Cincinnati is just five and five 0:10:08.120 --> 0:10:10.679 and in the last place NBA and Miami. They he 0:10:10.840 --> 0:10:12.880 won their seventh in a row. Jemmy Butler scored thirty 0:10:12.880 --> 0:10:16.040 six in a win over Brooklyn. Oklahoma City made it 0:10:16.080 --> 0:10:17.839 five to last six, winning one twenty eight one to 0:10:17.960 --> 0:10:20.120 nine at Golden State. The Warriors have lost five in 0:10:20.120 --> 0:10:22.440 a row. They're just one and five at home. They 0:10:22.480 --> 0:10:24.760 went thirty three at and eight at home. Last year. 0:10:24.800 --> 0:10:27.120 They rode out the injured Steph Curry and without the 0:10:27.200 --> 0:10:32.080 suspended Draymond Green. MLB owners approved thirty to nothing in 0:10:32.080 --> 0:10:34.400 the move of the Oakland A's to Las Vegas, and 0:10:34.480 --> 0:10:37.120 they waive the relocation fee. The A's will be in 0:10:37.160 --> 0:10:39.440 Oakland in twenty twenty four, but the plan is to 0:10:39.480 --> 0:10:42.199 beat a new stadium in Vegas by twenty twenty eight. 0:10:42.320 --> 0:10:45.480 It's unclear where they might be playing in between. It's 0:10:45.480 --> 0:10:48.440 the first time an MLB team has moved in Montreal. 0:10:48.480 --> 0:10:52.000 Expos went to Washington in two thousand and five. Baseball 0:10:52.000 --> 0:10:55.079 has given the twenty twenty five All Star Game to Atlanta, 0:10:55.400 --> 0:10:57.920 who had it taken away after that voting law was 0:10:57.960 --> 0:10:59.160 passed in twenty twenty one. 0:10:59.400 --> 0:11:01.160 John Stasha our Bloomberg Sport. 0:11:03.920 --> 0:11:06.920 From coast to coast, from New York to San Francisco, 0:11:07.240 --> 0:11:11.880 Boston to Washington, d C. Nationwide on SYRIASXAM, the Bloomberg 0:11:11.920 --> 0:11:16.040 Business app, and Bloomberg dot Com. This is Bloomberg. 0:11:15.600 --> 0:11:19.760 Daybreak, Good morning, I'm Nathan Hager. China will be at 0:11:19.800 --> 0:11:23.439 the forefront of artificial intelligence. That's what the CEO of 0:11:23.520 --> 0:11:26.040 Alphabet soon Dar Pashai, is saying. He says it is 0:11:26.080 --> 0:11:29.320 important for the US to collaborate with China on both 0:11:29.400 --> 0:11:34.240 regulation and innovation when it comes to AI. Pieshai, along 0:11:34.280 --> 0:11:37.640 with executives from Microsoft, City Group and Tesla, have been 0:11:37.640 --> 0:11:40.959 meeting with Chinese President Shi Jinping and US President Joe 0:11:41.000 --> 0:11:45.199 Biden at the APEX summit in San Francisco. After those meetings, 0:11:45.360 --> 0:11:49.160 the Alphabet CEO joined Bloomberg's Emily Chang and told her 0:11:49.280 --> 0:11:51.960 the world's two biggest economies do need to work together 0:11:52.440 --> 0:11:54.760 on AI regulation and development. 0:11:56.080 --> 0:11:58.920 It's not going to be easy, but I would start 0:11:58.920 --> 0:12:04.360 from this PREMI is that AI will proliferate, So this 0:12:04.400 --> 0:12:08.480 is not the inherent nature of software. AI advances will 0:12:08.520 --> 0:12:12.640 get out to in all countries, and so it is 0:12:12.760 --> 0:12:15.280 naturally the kind of technology. I don't think there's any 0:12:15.360 --> 0:12:19.720 unilateral safety to be had. We all have a shared 0:12:20.760 --> 0:12:23.959 incentive to solve for safety. You know, you could have 0:12:25.000 --> 0:12:28.280 AI go wrong in one country that will impact every 0:12:28.320 --> 0:12:31.040 other country. So in some ways, it's like climate change. 0:12:31.040 --> 0:12:33.520 In the planet. We all share a planet. I think 0:12:33.520 --> 0:12:37.000 that's true for AI. So now that you know that 0:12:37.000 --> 0:12:39.280 that will be true, I think you have to start 0:12:39.840 --> 0:12:45.079 building the frameworks globally to make progress. I've seen encouraging 0:12:45.480 --> 0:12:49.240 progress when the G seven happened in Hiroshima, I think 0:12:49.240 --> 0:12:52.600 it was a good start. You've seen more progress the 0:12:52.720 --> 0:12:56.240 Uki summit last week. The administration here, the White House 0:12:56.280 --> 0:12:59.839 has been leading the way as well, and I saw 0:13:00.080 --> 0:13:05.320 good encouraging announcements even yesterday for US in China to 0:13:05.400 --> 0:13:07.479 start having a dialogue on AI. 0:13:07.360 --> 0:13:10.200 Well, that was my next question. Should Chinese regulators be 0:13:10.280 --> 0:13:12.240 part of this conversation on AI regulation? 0:13:12.800 --> 0:13:15.720 My sense is there is no way you make progress 0:13:15.720 --> 0:13:20.640 over the long term without China and the US deeply 0:13:20.679 --> 0:13:23.240 talking to each other on something like AI. So I 0:13:23.240 --> 0:13:25.240 think that has got to be an integral part of 0:13:25.280 --> 0:13:29.120 how you make progress. So I think I'm glad to 0:13:29.160 --> 0:13:32.600 see it. And you know, we have to lay the foundations. 0:13:32.800 --> 0:13:34.440 The good thing is we are still in early days 0:13:34.440 --> 0:13:39.160 of the technology, so laying the foundations now will allow 0:13:39.240 --> 0:13:41.160 us to work through the tough issues and build a 0:13:41.200 --> 0:13:42.320 common framework over time. 0:13:42.840 --> 0:13:45.720 How do you think AI? And obviously the US presidential 0:13:45.720 --> 0:13:47.439 election coming up as well. How do you think AI 0:13:47.520 --> 0:13:49.920 is going to further test election integrity? 0:13:50.360 --> 0:13:53.600 I think you know, over time, it's going to lower 0:13:53.679 --> 0:13:58.440 the barrier for creating you know, artificial information which may 0:13:58.559 --> 0:14:01.040 or may not matror what's happening in the real world, right, 0:14:01.720 --> 0:14:05.240 and that barrier will come down. So in this cat 0:14:05.320 --> 0:14:08.920 and mouse game, how do we amp up our defenses 0:14:09.600 --> 0:14:13.480 against that. We are in early stages, right. You know, 0:14:13.480 --> 0:14:16.000 we were one of the first companies to announce a 0:14:16.080 --> 0:14:20.200 water marketing technology for image generation. It's called Synthide, done 0:14:20.240 --> 0:14:23.200 by deep Mind, and we are providing API access to it. 0:14:24.080 --> 0:14:27.560 But all of us need to tackle it. These are 0:14:27.600 --> 0:14:30.440 areas where regulation will have to play a role, right. 0:14:30.480 --> 0:14:34.560 I think governments will have to overtime pass regulations about 0:14:34.560 --> 0:14:38.360 what is okay for you some of this synthetic content 0:14:38.840 --> 0:14:40.280 and so, which is why I think you have to 0:14:40.320 --> 0:14:42.160 think about it together. 0:14:43.000 --> 0:14:45.600 Open AI CEO Sam Mollman has said repeatedly he wants 0:14:45.640 --> 0:14:47.960 to know more about what's happening with AI in China. 0:14:48.480 --> 0:14:50.200 What do you know and what do you not know 0:14:50.400 --> 0:14:52.640 about where China is on AI. 0:14:53.160 --> 0:14:55.960 From what I can tell, they're making deep investments in AI. 0:14:56.680 --> 0:15:00.440 The scale of AI research talent in China. It's just 0:15:00.440 --> 0:15:05.320 simply astounding to see. So I think, you know, in 0:15:05.360 --> 0:15:07.880 some ways this question, China is going to be at 0:15:07.880 --> 0:15:10.600 the forefront of AI, and you know, I think that's 0:15:10.640 --> 0:15:14.720 a given. And so the question is how do we 0:15:14.840 --> 0:15:18.720 work over time, both for you know, other countries to 0:15:18.720 --> 0:15:21.560 make sure you're making progress in AI and over time, 0:15:21.640 --> 0:15:25.400 how do we develop the frameworks where you know, countries 0:15:25.440 --> 0:15:28.680 can coexist peacefully in a world in which AI will 0:15:28.720 --> 0:15:30.200 be you know, everywhere. 0:15:31.120 --> 0:15:34.120 You know, President Biden actually just said he doesn't see 0:15:34.160 --> 0:15:36.760 the USD coupling with China, but the world does seem 0:15:36.800 --> 0:15:40.120 to be on a path to two separate internets. Do 0:15:40.200 --> 0:15:42.520 we continue in that direction? And what does that mean? 0:15:43.200 --> 0:15:46.360 It's tough to say. You know, things go through in phases. 0:15:47.120 --> 0:15:49.120 I think we are definitely in a phase where there 0:15:49.120 --> 0:15:54.320 are more forces pulling it apart. But you know, inherently 0:15:54.360 --> 0:16:00.320 these technologies also facilitate easy exchange of information, so I 0:16:00.400 --> 0:16:03.000 think there are countervailing forces as well, So I think 0:16:03.040 --> 0:16:06.040 it's tough to predict. I do think information wants to 0:16:06.080 --> 0:16:09.960 flow freely by nature, So you know, my hope is 0:16:10.040 --> 0:16:13.360 over time, you know, thanks to couple back again. 0:16:15.880 --> 0:16:18.960 This is Bloomberg Daybreak today, your morning brief on the 0:16:19.000 --> 0:16:22.400 stories making news from Wall Street to Washington and beyond. 0:16:22.680 --> 0:16:25.440 Look for us on your podcast feed at six am 0:16:25.520 --> 0:16:29.200 Eastern each morning, on Apple, Spotify, and anywhere else you 0:16:29.240 --> 0:16:30.440 get your podcasts. 0:16:30.560 --> 0:16:33.240 You can also listen live each morning starting at five 0:16:33.280 --> 0:16:35.880 am Wall Street Time, on Bloomberg eleven three to zero 0:16:35.920 --> 0:16:38.760 in New York, Bloomberg ninety nine to one in Washington, 0:16:38.880 --> 0:16:41.760 Bloomberg one oh six to one in Boston, and Bloomberg 0:16:41.840 --> 0:16:43.520 ninety sixty in San Francisco. 0:16:43.880 --> 0:16:47.040 Our flagship New York station is also available on your 0:16:47.080 --> 0:16:52.520 Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus. 0:16:52.560 --> 0:16:56.120 Listen coast to coast on the Bloomberg Business app, seriusxmb 0:16:56.320 --> 0:16:59.160 iHeartRadio app, and on Bloomberg dot Com. 0:16:59.200 --> 0:17:01.320 I'm Nathan Hager and I'm Karen Moscow. 0:17:01.520 --> 0:17:04.280 Join us again tomorrow morning for all the news you 0:17:04.400 --> 0:17:07.600 need to start your day right here on Bloomberg Daybreak