kriti: good morning and welcome to "bloomberg daybreak: europe." openai planning to hire the former ceo of twitch. as interim ceo murati pushes to reinstate founder sam altman. javier milei wins argentina's presidency on a platform that includes plans to shut down the central bank and dollarized of the economy. full coverage in just a few moments. the united states says a hostage deal with hamas may be at its closest yet. israel releases a video it says shows a tunnel beneath al-shifa hospital in gaza city. a lot of crosscurrents and geopolitics, not to mention the corporate news. let's get a quick check on markets. when you look at futures trading, there is a lot to digest. it is thanksgiving week in the united states. you will see volume lower around the world. amid this low volume, not a ton of volatility.

euro stoxx 50 futures virtually unchanged, same in the u.k. on ftse 100 futures. when you look at s&p futures, a slightly sour town. a lot of this has more to do with the corporate news. you have the openai saga where microsoft has a 49% stake in the company. the world will be looking at the big tech read through, arguably you can see that with the underperformance in the nasdaq, but nonetheless extremely low volume so take this with a grain of salt. let's look at the cross assets picture because you are seeing volatility in the bond market. the two-year yield virtually unchanged but it was lower by four basis points earlier. seeing some intraday volatility already, 4.88 on the front end of the u.s. treasury. the euro and cable read gets interesting, officially at 1.09 on euro-dollar and 1.24 on the pound speaking to the dollar weakness across the board. a function of what you saw on

the front end in the bond market. brent trading higher purely off that dollar weakness. you get that opec meeting in five days time, what kind of positioning we see ahead of it? $81 handle on brent crude. let's go to our reporters covering asian markets. as well as argentina's elections. there is a lot to dive in this monday morning. we will have you covered. i want to start with the asian market story with avril hong standing by in singapore. walk us through what is going on in europe. let's talk about what's going on in asia. >> i think a lot of it is that narrative gaining ground of a soft landing and that the fed is done. the msci asia-pacific closing in on its highest finish in about two months. we are seeing a gauge of em currencies climbing to its highest level since february. adding to signs that the markets think we are at an inflection

point. indeed we are seeing the yuan and the yen both gaining ground today. the offshore and onshore rendon be hovering at 7.18. chinese stocks reversing two sessions of losses. we get development over the weekend, regulators telling lenders to support the funding needs of property firms. today we are tracking how the loan prime rates were kept unchanged. this in itself is not a surprise, but more importantly, illustrating that china sees that in terms of others stimulus, it is not rate cuts it is looking at versus what we are seeing on the liquidity side. that perhaps more important coming through. kriti: certainly a lot to digest. avril hong in singapore bringing us that macro story. and while, i want to break some earnings headlines. julius baer coming out with some of their numbers. we are getting headlines at the moment. they are at1 ratio 16.1%.

their net new money inflows showed 10.3 billion swiss franc by the end of october. they don't see full-year year net profit level to reach the 2020 two level. not a great vote of confidence. let's see if that holds as we get closer to the european market open. let's get to our top story over the weekend. the tech trauma continues in sale on valley. openai's board is founding -- hiring the founder of twitch emmett shear. this follows the portrait of sam altman. the company at the center of the ai boom but thrown into uncertainty after altman's sudden dismissal on friday. tom mackenzie have been monitoring his phone second by second. talk to us about what this appointment would mean. >> emmett shear and this reporting came through from the team in san francisco 30 minutes ago. this was after overnight we were looking at these negotiations

between the board and sam altman. altman was in the offices of openai over the weekend. we have the news that emmett shear, formerly the ceo of twitch up until early this year, has been appointed the ceo. it's quite the dramatic turnaround given we reporting that the board and sam altman were negotiating potentially over his return. emmett shear cofounded justin.tv, a video platform, then the ceo of twitch. he has a part-time partner at a vc firm at y combinator. we will see how long the appointment lasts because we know the tensions exist between the existing investors and many within openai who are still lobbying for sale moment to kriti: come back. kriti:what's interesting is even though there are all these fluctuations, we don't know what the initial falling out was about, at a time when even satya nadella, the ceo of microsoft, had to get involved. >> he was taken by surprise.

our reporting saying that satya nadella was stunned by this announcement on friday. particularly as it came through just days after the development summit led by openai. satya nadella was on the stage with sam altman. the reporting suggests a, nation of factors. one, concern about the risks of how quickly this technology was being developed at openai. sam altman was driving the commercialization of this project. the other was about, it seems, some of the other business projects sam altman was building up to raise funding for chips around ai. he wanted to start a business on that front. and also, possibly as well, reporting around working with the former chief designer at apple to come out with some hardware projects. he was making the rounds globally to raise funds for additional projects, but at the heart of this, this question about how quickly these projects were being commercialized at openai. which don't forget was founded as a nonprofit. that tension exists as a result

of the legacy of a board that was appointed around the nonprofit that has this commercial arm tied onto it. now the commercial arm is becoming increasingly important, and that tension is central to what is unfolding with openai. kriti: elon musk has been so vocal against the increased progression of making ai part of our everyday lives, saying slow your roll just a little bit. tom mackenzie, thank you for bringing us that reporting. in the meantime, a hard pivot, but another major story, libertarian outsider javier milei will become argentina's next president, after he beat the economy minister in sunday's runoff election. malay promised a radical economic shakeup, including dollar rising the economy, as well as scrapping the central bank. bold calls for someone who is not the economy minister. our reporter joins us on set. roderigo, just about a month

ago, he wasn't leading in the polls. how much of a surprise was this? >> it's a surprise that somebody who is wielding a chainsaw gets to be president, right? go back three or four months, he was leading the polls slightly. his result in the first round was quite underwhelming given the expectation. that's when he was not leading the polls. there was a feeling towards last week that he had picked up. part of it was that the former president came out strongly to support him. that tipped it in his favor is the general feeling. it wasn't a surprise three months ago, it is a surprise if you look at the last week which made the difference. kriti: some of his calls are pretty surprising for any country around the world. dollar rising the economy, getting rid of a central bank altogether when inflation is 143% year on year. talk to us about how the markets

interpret this, is this a positive or negative? >> the other candidate did not have much going in his favor for the economy. and the feeling -- i think the big question mark is what will he announce tomorrow? will he push through these policies? there is a feeling that a lot of what he is saying is being appraised by the pro-business camp. there are positives on the investment point of view. the question is how far can he go? argentina has no reserves. it has big currency controls. what will he do with that? will he really dollarized? argentina does not have the reserves for that. willie take down the central bank, he has toned down some of that, so we will see what he presents when he names his economy minister. kriti: roderigo all over that story, thank you so much for bringing us that crucial insight. it is one of our top stories this morning that you can find on the debris terminal page.

if you are a super terminal subscriber, just type da why bigo on your terminal, and you will get a full roundup of the major stories from openai to what's going on in argentina and how it affects your portfolio. speaking of your portfolio, let me put a few more things on your radar this week. remember it is thanksgiving in the u.s. which is going to create light trading volume around the world. but we still have a few game changers. tuesday, we get fed minutes. do we see that hawkish or dovish tone that the market is interpreting reflected in some of the commentary? those under certainly for the bond market. sticking with the tech fema, tuesday, nvidia, we get those results. we are talking about the chapter on, momentum the hind the tech space. and and videos massive 230 7% increase year to date. and on wednesday at right here

in the u.k., we get the autumn statement. what does the economy look like? what does the budget look like, and where does rishi sunak really want to be leading the broader economy? jeremy hunt delivering that statement later on this week. coming up on wednesday. lots of things to watch for. lots of things to digest, all of which will be affecting your portfolio before we go a little bit quiet on thursday as the u.s. celebrates thanksgiving. stick with us, more analysis ahead. this is bloomberg. ♪

kriti: i'll back to "daybreak: europe". i'm kriti gupta in london. the united states says a deal to release hamas hostages taken on october 7 in israel may be at its closest stage yet. henry is standing by in dubai. walk us through the latest. what can we expect in terms of a release? >> what we're looking at is a potential deal which would see, at the moment, the reports are 50 women and children held by hamas would be released in return for the release of palestinians held in israeli jails, women and children.

one of the sticking points apparently still is that hamas is demanding not only a truce, or a ceasefire for several days, but also crucially that israel stop surveillance flights by drones over gaza for at least several hours a day. this is giving it crucial intelligence on the movement of hamas fighters. also, on where the hostages are being kept. so far, that appears to be a sticking point. kriti: in terms of the actual ground offensive in response to the attack, the initial thought process was that in terms of the humanitarian effects, all the palestinians living in the north of gaza were set to move to the south. now there is talk of the offensive moving to the southern part of the territory. where are we on that conversation? >> you are right, that was the original idea.

actually two thirds of the population of gaza has been displaced as a result of this conflict. israel instructed palestinians to move from the north to the south where they were told they would be safe. at the end of last week you saw that leaflets begin to be dropped by the israeli army telling people in the second largest city in the gaza strip, in the south, to leave that locality. this has sparked fears israel will extend its offensive to the south. it's clear that hamas has the ability to move between the north and south. they have a network of tunnels. maybe israel is calculating it has to take action against hamas in that area, but then what will happen to the civilians who are there? kriti: is truly a heartbreaking situation. while we talk about the civilians, let's talk about humanitarian aid. bun has actively said there is very little that can actually do

in terms of their humanitarian efforts, because of the lack of fuel. henry, how much longer can we rely on the united nations? >> the united nations is getting some fuel supplies, which began several days ago, however they say these are not sufficient to mount even basic humanitarian functions. they are operating, but obviously at far below the capacity which they would like to be able to ensure a minimum humanitarian level in the gaza strip. kriti: and let's talk about the other party here. we have talked about the gaza perspective, the u.n., israel, hamas. let's talk about the houthi rebels. israel has accused the rebels which have been known to be backed by iran of hijacking a cargo ship in the red sea. why is this relevant to the story? >> this is an important development i would say. this is a waterway through which

a large quantity of oil exported by the persian gulf passes on his way to the suez canal. what we know is that a cargo ship was seized and taken to a yeah many -- yemeni port. it's known to be owned by an israeli and had various nationalities on board, but the significance is if the houthis start to mount these kind of rates, this is a potential risk to world shipping. kriti: certainly something could have real readthrough in terms of the oil markets. but it feels like the oil market perhaps creating a little distance between how they are pricing that in as we monitor the developments. henry in dubai, thank you for walking us through that story. we got from the conflict in israel to ukraine. russian drones have been targeting infrastructure in the key of region -- kyiv region.

ukraine shut down 15 of 20 drones launched from southern russia. the latest strikes follow the tax which damaged energy facilities in ukraine's south and east cutting power to thousands of households. coming up on the program, we bring the story back to the emea region. how germany is preparing to support staff africa -- south africa in its transition away from coal power. this is bloomberg. ♪

kriti: i'll him back to "daybreak: europe". germany is preparing to lend south africa over 540 million dollars to support the transition away from the use of

coal-fired electricity. the move is a boost for the troubled climate finance agreement which has been delayed by political infighting. joining us, jennifer zabasajja all over this story. walk us through how this loan is being financed. do we know the rates that south africa has to repay? >> what we know about this loan is that it is a concessional loan. we don't know about the rates, but it is below market rate is what we have been hearing. it is $543 million. that adds on top of what we heard from south africa getting from germany and france last year, which was 600 million euros. to put this in perspective, this is part of the jes energy partnership agreement south africa was awarded back at cop26, but has been experiencing delays. there has been political infighting and some questions about just how sustainable it is , and whether these countries

actually benefit. but what we are hearing from the german embassy in south africa is this is a milestone for the agreement. it's a step in potentially helping other developing nations transition out of their coal dependent economies. what we have heard is that south africa's framework could set up what we see in senegal, indonesia and other countries. this is significant, but there is still $8.8 billion is the total package. we will have to see how exactly this is laid out. and what exactly the transition looks like. kriti: let's talk about the corporate piece of this equation. south africa's second-largest producer of greenhouse gases announced a new ceo, why should we pay attention to that? >> this is going on in the backdrop of what is happening in south africa. it speaks to a lot of the questions around energy policy in this country.

second-biggest the manner in south africa. south africa's biggest company by revenue. when we talk about transition, sasol is an integral part of the whole equation. what we saw on friday, there is an agm meeting that was supposed to happen. sasol was supposed to disclose their targets. that was interrupted by protesters. at the same time, the key stakeholders for sasol, that's old mutual and also 91, expressing concern about their emission targets, saying there is still not enough clarity about how they will get there. sasol announced a new ceo that will step into this role. this new ceo will have a big task ahead of it. in particular, we have a number of questions around the energy transition. there is also still questions around what happens to a number of these coal-fired plants.

there is still a lot of headway this new ceo has to make. and a lot that this company on a particular needs to prove to instill some confidence that it can be part of the transition that this country needs to see. and a lot of people are paying attention to. kriti: to your point, we will see what president is set for the rest of the continent. jennifer, thank you for bringing us that reporting. a lot of focus on climate. a lot of focus on how that's going to feed into the fiscal deficits. the conversation around fiscal deficits is global, not just south africa, germany or the united states, it's also japan. this is a chart i'd like to bring to your attention. there is a big call that was made, something else brought to our attention over the weekend, pimco, the gigantic bond buying company in california owned by allianz, talking about how they are racing for a tighter bank of japan policy. basically saying that eventually this yield curve control, this

easing stance is not going to last. the chart shows two things. the purple line here shows the u.s. inflation story. the blue line in the top panel shows the japanese inflation story. you can see how in 22 anyone and 2022 they were both increasing in line with the global inflation story, whereas they started to ease, the u.s. inflation numbers have fallen faster than the japanese numbers which have largely stalled out. that's the core of pimco's argument for buying the yen. basically saying because japanese inflation hasn't shown the same progress as the united states, the bank of japan's ultimately going to have to ease -- excuse me, hike in an aggressive way, and that will create demand for the yen. which is why they are building that long gun position in recent months. they are taking quite a bit of losses because in the past few months, japanese yen has been the worst performing currency against the dollar among all the

g10 currencies. that's what that bottom panel is showing, that's the dollar-yen swap rate. you can see why pimco is the anomaly in this trade. even the folks who really went out and said we are going to short those jgb's have pulled back because it feels like the boj [indiscernible] pimco nevertheless sticking with that call. that's a chart i wanted to put on your radar. a big day for the u.k. government, we look ahead to jeremy hunt's autumn statement. lost to digest there, not to mention his policy on tax cuts. plenty of analysis ahead. this is bloomberg. ♪ i don't want you to move. i'm gonna miss you so much. you realize we'll have internet waiting for us at the new place, right? oh, we know. we just like making a scene. transferring your services has never been easier. get connected on the day of your move

with the xfinity app. can i sleep over at your new place? can katie sleep over tonight? sure, honey! this generation is so dramatic! move with the xfinity 10g network.

kriti: good morning, welcome to "bloomberg daybreak: europe." i'm kriti gupta in london. openai planning to hire the former ceo of twitch, as interim ceo murati which is to reinstate the founder, sam altman. from tech to e.m.. javier milei wins argentina's presidency on a radical platform that includes plans to shut down the central bank and valorize the economy. in the middle east, the u.s. says a hostage release deal with hamas may be at its closest stage yet. israel releases a video which shows a tunnel beneath all shiva hospital in gaza city. a lot to digest over the weekend. it has been a news filled 48 hours. if you look at what euro stoxx 50 future is doing, it's a whole lot of nothing ahead of a week that is expected to be like in volume, despite a lot of

economic data in the week ahead. sibley because on thursday we have a thanksgiving holiday. it will be like volume in the united states, and is a function of that volume in europe and asia, the market trade getting ahead of that with euro stoxx 50 futures and ftse 100 futures amid low-volume trading slightly lower. what's interesting is the s&p futures are as well. we know that during this time, europe and asia haven't actively been buying into the u.s. future complex. but the underperformance of nasdaq 100 futures is crucial, down about 0.3% because openai, 49% of its stake is owned by microsoft. there is a concern about the what openai story might mean. microsoft is a heavy weight the nasdaq 100. but broadly in the big tech sphere. looking at the cross asset picture, you are seeing volatility in the bond picture despite that low-volume background, 4.88 on the front end of the curve.

that u.s. two-year is unchanged but earlier it was down four basis points. that original weakness in the front end of the curve weighed on the dollar, which is giving a slight boost to the euro and the pound especially the last one he four hours. euro-dollar at 1.09, the cable rate at 1.24 read that dollar weakness showing up in the commodities space. brent crude at an 81 handle, higher by 1%. not a massive move in the oil complex, really a function of dollar weakness. a lot of it is ripple effects from that. i want to get to one of our top stories this week. the u.k. chancellor set to release his autumn statement on wednesday. jeremy hunt saying he wants to take the "path to a lower tax economy." the opposition labour party remains well ahead in opinion polls. for more, are u.k. correspondent lizzy burden on set. set the scene. what did we learn over the weekend? >> chancellor hunt was on the

airwaves after what was an absolute nightmare week for the government last week. as you say, this is one of the few set piece opportunities to close that poll come with labour before the general election, which rishi sunak has got to call by january 2025. he has a lot of balancing to do, so he is in a fiscally constrained position. people want to take credit for stabilizing the economy. they have already managed to halve inflation, which was one of the government's own targets before the end of the year, but still more than twice the bank of england's 2% target. still, he has not had room to maneuver. he will want to avoid the criticism that they are simply managing britain's decline. with an election looming, there are conservative mps clamoring for tax cuts. jeremy hunt says it's not going to happen overnight though he

hasn't ruled anything out. he has got to get a lot out of this politically. a lot of political bank, not a lot of fiscal buck. kriti: what might he say? >> there has been speculation he might go after inheritance tax. but the prime minister and chancellor could benefit from that personally. there is speculation he could go for a bigger lever like income tax, or national insurance. but jeremy hunt himself will be very conscious about the potential impact on inflation. the compromise would be to pledge that they could cut income tax, but down the line. that will be straight out of the rishi sunak playbook. another alternative would be to go for stamp duty. potentially less inflationary. i would be listening out for clues from the prime minister later today, he is speaking been morning, and the chancellor jeremy hunt is speaking at the event in the afternoon.

we will speak to the director general of that cbi on bloomberg radio at 8:20 this morning. kriti: lizzy, thank you so much for bringing that u.s.. i want to bring you some breaking headlines crossing the bloomberg terminal right now. moody's has revised softbank's outlook to stable from previously negative. this is important, let me walk you through the rationale. they are saying the outlook change to stable reflects the recovery in their credit fundamentals, driven by their lower leverage, and greater transparency in its investment portfolio value following the ipo of arm holdings. this is important, as we talk about what we have gotten not only from the armor earnings, but softbank earnings last quarter as well. this idea that arm and softbank both disappointed on their story, but moody's saying that's not what they're focused on right now, it is that lower leveraging story in terms of credit fundamentals. moody's revising softbank's outlook to stable from negative. sticking with credit change,

moody's raised italy's credit rating to stable, meaning the country is no longer in imminent danger of being downgraded to junk status. the agency says the decision reflects a stabilization of prospects for the country's economic strength, the health of its banking sector, as well as the government's debt dynamics. it will be seen as a victory for prime minister giorgia meloni after 15 months at the helm of power. sticking with the geopolitical story. libertarian outsider javier milei will become argentina's next president, after he beat the economy minister sergio massa in sunday's runoff election. the country is seeing inflation soaring over 140%. milei promised a radical economic shakeup, including dollar rising the economy. patrick less be reports. >> argentina is heading into uncharted waters after outsider candidate javier milei won sunday's election. he beat the economy minister by

12 percentage points, a margin nobody saw coming. now he will inherit titanic challenges, with inflation running over 140 percent in argentina, and over 40% of the country living in poverty. on top of that, people will look at milei's next policy steps. he has talked about dollar rising argentina's economy which means changing the national currency from the pace of to the u.s. dollar. he talked about closing argentina central bank. another area of concern for investors is ermotti's foreign policy. he has talked about cutting people manic ties with china, one of argentina's top trade partners pray they have an $18 billion currency swap line with argentina's central bank. his foreign policy major economic and financial consequences if he follows through on his campaign rhetoric. massa may be taking a leave of absence from his role as the economic chief of argentina where he has been the past year

and a half. the next days of economic measures remain unclear, but milei is inheriting sizable challenges, and a lot of uncertainties both for society and markets. from when is our ace, i'm patrick gillespie. kriti: from buenos aires, walking us through that crucial election story. some other big stories around the world. in the united states, the faa says they will oversee an investigation into the explosion of spacex's starship during its second major test flight. the most powerful rocket in history took off successfully from texas, but spacex says a flight termination system was activated as it attempted to reach orbit. it was an improvement from a test flight which saw the rocket destroyed after multiple engine failures. elon musk has dismissed reports of him being anti-semitic as bogus, and that it couldn't be further from the truth.

he sparked an uproar after agreeing with a post on that claimed jewish people held a quote hatred of white people. the news came as advertisers halted spending on x, including disney and apple, after a report found there ad ran next to pro-nazi content. bill ackman said while musk isn't perfect, the world is in a better place because of him. former u.s. first lady rosalynn carter has died at age 96. she was an influential partner to her husband former president jimmy carter and led a presidential commission on mental health issues read carter had been diagnosed with dementia in may. ♪

kriti: welcome back to daybreak

europe. and nvidia's ceo says europe is rich with artificial intelligence expertise and it is developing quickly in france. he made the comment to hundreds of executives in paris. >> ai is developing very quickly in europe. france particularly. as you know, france is the home of the fair ai lab. europe is the home of deepmind, and my friend dennis doing amazing work. europe has always been rich with ai expertise. we have nearly 4000 ai startups that we work with in europe. and for hundred of them are in france. this is an area that is developing very quickly. if you look at the advancement

of ai, you can see it in several different pillars. you can feel the action of development, starting with venture capital and startups. this is an example of an exciting company that damian mentioned earlier. these are really exciting startups. at the same time, you have to get the infrastructure for computing going. this is why scale is so important to the advancement of ai in france, as well as all over europe. without the infrastructure, without the instrument of ai, it's really hard for the researchers to advance their work. the third thing that is really important is access to data. this is an area that many companies, particularly in

different regions, are starting to realize that each region has their own data that they would like to train on, the culture of their region, the specific data of their domain. and their particular industry. and so, i think you are seeing the researchers, the infrastructure, the availability of data, the subtle interest in advancing ai developing really quickly in france and europe. kriti: nvidia's ceo speaking during europe's premier ai conference in paris. openai's board is hiring former twitch ceo and cofounder emmett shear to lead the company, following the parker of sam altman. the company is at the center of the ai room. it had been thrown into uncertainty after altman's dismissal.

let's go to host of the bloomberg's series exponentially. emmett shear, the former helm of twitch owned by amazon, being tapped for the ceo of openai. what's the thinking here? >> the board has acted very quickly given that they dismissed sam altman on friday, and appointed murati, the chief technology officer, as the interim ceo on friday. it shows decisiveness on their part. emmett shear is an experienced and successful silicon valley executive who has been thinking quite a lot about machine learning and ai over the past few years. i was impressed they were able to find a candidate of that stature. i was quite surprised that they still showed the courage of their convictions from this sudden ouster on friday. look over the weekend -- he looked over the weekend that they might be some wobbling. there was a lot of controversy.

but here we are on monday and the board is sticking to their guns. they found a credible new ceo to look after the organization. kriti: but in terms of the other side of this equation, we know murati the interim ceo, he was one of the brains behind some of this technology, still fighting for sam altman to lead the company, as our a lot of his employees. do we have any indication of what the original falling out was about? >> i think we have some strong idea now. openai was founded as a research group with its mission not to make money for its shareholders, but to develop artificial general intelligence for the benefit of humanity. and that research component is an important part of the firm's culture. but since the arrival of chatgpt, there has been a strong commercialization drive.

that's a different type of culture. it was clear that there were tensions within the organization. sam altman had even referred to them as tribes. i think it's that tension between on the one hand, the desire to go quickly, you have one of the fastest-growing products in history. and the overarching mission of openai, which is owned by the nonprofit group openai, it's not a traditional company. and the mission of that group is to develop ai safely and beneficially. i think it's that tension that has given the board to act as quickly as they did on friday. kriti: of course, sam altman although having been one of the creators of ai has been vocal in saying we need to slow our role in terms of global development, one a lot of big players like microsoft, amazon and apple have kind of stepped on the pedal for lack of a better term.

plus, microsoft has that 49% stake in business. walk us through the big tech read through. >> for the big tech firms, the impact is going to be variable. for microsoft it's a huge shock because many of their new products are based on openai's technology. there is that significant multi billion dollar commitment. i would expect that the first things they would be doing would be to stabilize the relationship with openai stabilize the commitments for openai to provide the technology that microsoft requires for its products that use gpt and so on. i wouldn't be surprised if they start to double down at microsoft on their own ai research capabilities. for the rest of big tech, this is a boon from a competitive standpoint, because it will

slowed down openai. they were the leaders. gpt 4 was a high water of ai technologies in the market. that will result in google being given the opportunity to catch up with openai and microsoft. kriti: let's expand on that competitive landscape. you are no stranger to ai yourself. walk us through the pros and cons of expanding the ai infrastructure. it feels like ai is talked about the way that cloud is. it's been around a decade but has never been focused on this much. can you give us the pros and cons of the ai conversation right now? >> industrially, is an enormous opportunity just looking at microsoft alone. their capex, which is largely going to go into server infrastructure to support ai applications, is approaching $50 billion per annum. that's an enormous amount of

money. of course, microsoft will be matched by amazon and alphabet in the same way. that creates a huge opportunity for all of the firms who are providing the semiconductors and servers that are required for that. that investment is being made because enterprise customers want to use these applications to drive their productivity levels. we've got increasing evidence that when you start to apply even basic ai tools like chatgpt in the modern office environment, it can increase worker productivity. there is a lot of hunger to god and do that. the overarching story will be that ai development and investment will rapidly continue. but of course, there is this tale risk, which is that the openai ford has acted very suddenly, some might even say abruptly, around the issue of

the safety of the technology. if it is as serious as firing sam altman, really seeing the company become unpicked as more executives leave, they have taken a tough decision. if they have done that in the public interest, there is almost an obligation for that to be disclosed more broadly. kriti: i love what you said about how that raises appetite to dive into ai, when a lot of people including blackrock's larry fink who said ai is the answer to lower productivity numbers you are seeing around the world. we have to leave it there, the author of exponential and host of the bloomberg series, exponentially, thank you for your insight on the top story this morning. is the focus of today's big take . subscribers can read the full analysis, terminal. -- on the terminal. stick with us. this is bloomberg. ♪

at ameriprise financial, our advice is personalized, based on your goals, whatever they may be. all that planning has paid off. looks like you can make this work. we can make this work. and the feeling of confidence that comes from our advice? i can make this work. that seems to be universal. i can make this work. i can make this work. no wonder more than 9 out of 10 clients are likely to recommend us. because advice worth listening to is advice worth talking about. ameriprise financial.

kriti: welcome back to daybreak europe. was get a recap of some earnings. julius baer, this was private banking group, had talked about some numbers they released. they are expecting net profit for 2023 below last year's levels. they are tripping that to credit provisions, saying an increased tax rate didn't help them, but net-net they talked about new money inflows in the month of october. valuation adjustments of 82 million swiss francs, the equivalent of $93 million. we are watching that closely. just for context, their tax rate increased to 16.5% over the first 10 months relative to 12.4% for 2022.

that's the pain point for some of their figures. we will watch them closely at the european market open. we are watching the bond market. in the last 11 to 14 days, the auctions have been in focus. we saw that massive spike, you can see it on the left-hand of the chart where this concern about digestion in the markets for the bond market, not being able to take all that supply, resulted in this massive yield move. now we have completely paired that move and come back significantly lower in the 14 days. now a lot of focus on the 20-year bond auction today. we will talk about the digestibility of today and whether fiscal concerns actually weigh on the broader market picture. at something on your docket. in addition to that bond auction, later today, boe governor andrew bailey will give the memorial lecture on food security. tomorrow we get fomc minutes.

later tomorrow, nvidia releasing third-quarter earnings after the bell in the u.s. session. on wednesday, u.k. chancellor jeremy hunt delivers his autumn statement. thursday is thanksgiving. what are you thankful for? u.s. markets will be closed but the ecb releasing its october meeting minutes. on friday, germany's eco-survey -- ifo survey results to out and black friday weekend begins. 20 of data amid a low trading volume market environment. we will have you covered on every tick by tick movement prayed up next, markets today, i'm joined by tom mackenzie. this is bloomberg. ♪

when people come, they say they've tried lots of diets, nothing's worked or they've lost the same 10, 20, 50 pounds over and over again. they need a real solution. i've always fought with 5-10 pounds all the time. eating all these different things and nothing's ever working. i've done the diets, all the diets. before golo, i was barely eating but the weight wasn't going anywhere. the secret to losing weight and keeping it off is managing insulin and glucose. golo takes a systematic approach to eating that focuses on optimizing insulin levels.

we tackle the cause of weight gain, not just the symptom. when you have good metabolic health, weight loss is easy. i always thought it would be so difficult to lose weight, but with golo, it wasn't. the weight just fell off. i have people come up to me all the time and ask me, "does it really work?" and all i have to say is, "here i am. it works." my advice for everyone is to go with golo. it will release your fat and it will release you. it's an amazing thing

when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. we have been able to reach over 100 million people impacted and affected, and at risk of hiv. the rocket fund takes all of the work that we're doing, all over the world, and looks at the most effective ways, to get resources to them, to get services to them. the idea that we have saved five million people's lives, it's overwhelming. it's everything. ♪ kriti: