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>> good morning and welcome to daybreak europe. let's get to the top stories. openai in discussions to be unified with sam altman. microsoft ceo wants to partner with sam altman. >> we want changes. surprises are bad and we want to make sure things are done in a way that will allow us to partner well, that is it. kriti: citi cutting 300 top roles. in the middle east the leader of hamas says the group is close to a truce with qatar and israel. israel and hamas engaged in heavy fighting.

from tech to banking to geopolitics in the middle east let's get a quick check on markets because we're are dealing with light volume but an interesting dynamic given the massive rally in the nasdaq driven by moves behind microsoft, openai and divergence in the tech space. how position do you want to be as we wait for the global narrative. when it comes to europe it's been 24 hours and is starting to see muted action. not the same conviction. futures higher by a 10th of 1%. futures shrugged their shoulders, underperforming in futures trading given the massive rally. not seeing a massive pullback. when we see those gains futures tend to have a pullback. you are paring back gains.

we are not seeing massive appetite to get into the market. valuations will be part of the conversation as is the currency space. this is where we talk about the bond market. we should talk about the dollar because even though yields are unchanged it is dollar weakness pushing strength into currencies in asia but a lot of currencies in europe. euro-dollar at 110. cable rate at 125 and dollar-yen retreating from 150. nothing to do with boj, it is dollar weakness. creating a boost into gold. 1992 and the precious metal is higher, a theme that flows around the world. checking in on asian markets, april hong is standing by. walk us through the narrative?

april: do not see the nikkei on the board but that is because of light strength against the greenback. it is infotech among outperformer's. taking a look at chinese property developers, stocks and bonds rally on the news that chinese authorities are drafting a list of developers that will be eligible for funding. this would be in the form of equity and debt financing and bank loans. this is the latest in a slew of support measures. bloomberg intelligence points out that support measures look similar to plans that were laid out in november, a 16 point plan which was not effective as it failed to avert the default of

country garden. we've seen market reaction but we have to see how it filters through into property names. looking at chinese currency rallying on the offshore and onshore to a three-month high. if you look at offshore currency versus the daily fix its move past that level for the first time since july. a sign that amid the retreat and support for chinese currency market pricing is more in line with the pboc and where it wants the currency to sit. kriti: something we are watching and the moves in the dollar the ramifications will be global. we thank you so much. she was talking about dollar weakness and i wonder how much it creates incentive to hop into

the tech space given developments with openai. bloomberg has seen a memo that says the company is in intense discussions to unify staff. investors are trying to return sam to a leadership role. must get more insight with alex webb this morning. when the odds of a return for sam altman when we thought he was entering the umbrella of microsoft? >> it's looking probable. there will be some sort of unification. is interesting when sam posted on twitter as it used to be known as a visitor to the headquarters he had a guest badge. so even on the weekend he was optimistic something would happen. kriti: a dramatic saga but there

is this idea that whether sam altman is at openai or microsoft they still have steak. nvidia releasing results after the bell. what do we expect? >> people are optimistic. it is looking at the growth in data centers. 12 point eight in the quarter. that was more than the annual revenue they were generating. the revenue was a lot less than that. so that is the continuing growth story. the trouble might be if they do not beat expectations analysts are suggesting that if they don't post a revenue beat there might be disappointment so expectations are high. stock trading at record highs. optimism continues to be strong.

kriti: fascinating given a 229% stock increase in the last year. is this the moment where we get more momentum or is this the stock moment narrative. alex love, thank you for walking us through the biggest stories today and we go to banking. more than 300 senior management roles are being cut as jane fraser continues the biggest restructuring in two decades. finance editor janie should joins me now. she is no stranger to citigroup coverage. walk us through the job losses. >> city has been on this path so they basically announced the second leg of cuts. they are at the top echelons of the company, only a few levels down from jane frazier and this

is not over so we are expecting to see changes, cuts, rules being announced in january and through the end of the first quarter. kriti: how does this fit into the broader plan? is this the last hurdle or more to come? jane: there in the early phases. citigroup's returns have lagged so this is one piece of the puzzle and she's got a big strategy review and new strategy for the bank that is a key piece of getting returns. where jp morgan already are. kriti: hello how said they lagged. we look at the crisis and it is depressing. despite being one of the biggest dealmakers on wall street. when it comes to jane frazier do you see pushback given there is a lot at stake? jane: she knows what is at stake and talks about how she feels

the street undervalues the bank a discount hard work. she know she has a lot to prove. they have fallen short of targets so city does not have the best track record so she knows she set an ambitious strategy and has firm target set. she's too many things to get there but there is a lot to prove and a little doubt among investors that this will be the time it works out. kriti: they tried to punch above their weight and we will see if they can accomplish that. our head of finance coverage in the region, we thank you. let's get to elsewhere watching. developments on the citigroup restructuring. we've got data as well and after 10 a.m. in london governor into bailey is due to testify to the u.k. parliament treasury committee. we will get existing home sales for october, what does that do?

what precedent does that set for the fed? at 4 p.m. u.k. time christine lagarde speaks in germany. similar question for ecb. at 7 p.m. u.k. time minutes from the fomc meeting. minutes will not normally be market moving but it is important to keep in mind if the market is right about dovish rhetoric or do they have it wrong? earnings are coming in after the close. full round up in the stories to get your day going in today's edition of the terminal. you will see the deep dive into stories we have covered specifically openai but also key central-bank speakers throughout the hour. coming up after the break we have an update from the middle east. hamas is close to a truce.

reviving hopes of progress on negotiations. more next, this is bloomberg. ♪

♪ kriti: welcome back.

the chief of hamas says his group is close to a truce in talks with israel suggesting progress may be coming. joining us is sam in dubai. what has the leader agreed to according to report? >> hi, good to be with you and the viewers. after the statement on telegram, qatar's al jazeera interviewed another official. he told al jazeera that we could be hearing something in the next hours and with details will be announced. he said -- we cannot confirm this but he said the deal involves the middle east and palestinian prisoners held by israel in exchange for hostages. one interesting sign is on

sunday the president of international committee of the red cross, the body involved in these things met with them. but they did not say -- they issued a statement saying it was to discuss ways to alleviate the humanitarian crisis. over the weekend the u.s. national security coordinator said there will be no increase in humanitarian aid or fuel supplies or longer pauses in the military operation unless hostages are released. kriti: we are still getting reports of 13,000 people killed. given those numbers are from the

advisory led by hamas. can you give us an update on the ground? >> i can talk about the situation which the u.n. is coming hour-by-hour out to describe read they've been saying over the past few days that they cannot deliver any food, medicine, water to the north which has been cut off from the rest -- this is where israel has concentrated most of its firepower since october 7 and from where most of palestinian civilians were ordered to evacuate, to go south. we also have a very critical situation with hospitals there out of commission but still besieged by israel. they claim hospitals are being used by hamas and we have the world health organization

confirming a fit strike against a hospital, this one indonesian and told people where killed. the world health organization issued a statement saying the world cannot stay silent. while these hostages -- i'm sorry, while these hospitals which should be safe havens are transformed into scenes of death and despair. we are hearing for the past couple of days israel ordering people in the south where we have hundreds of thousands, almost a million palestinians displaced, ordering them to move again saying it will step up operations and the u.n. warning of a dire situation saying people have nowhere to go. one million people in the south packed into these shelters.

and even said thousands of people were sleeping in the open, some in tents, others against the walls hoping that israel will not target them knowing that there are displaced people there. kriti: certainly a dire situation on hostage negotiations in humanitarian situation. updates from the hospital as you lay out. thank you for walking us through that. i want to bring in another aspect, china hosting senior officials from middle eastern nations or talks on de-escalating the fighting. foreign policy in the beijing authorities visited for the talks. a group of lawmakers have more than two f-16 fighter jet

programs remaining at high risk of falling behind schedule. in a letter, two dozen representatives say they are concerned that difficulties in completing the transfer of fighter jets could drag upon. this comes as taiwan bolsters defenses against china. more after the break. a lot going on with markets. this is bloomberg. ♪

♪ kriti: welcome back. u.k. prime minister has said his government can cut taxes after hitting his goal to cut inflation in half. jeremy hunt will stand up in the house with the details in his statement. a lot to digest.

who better to ask them lizzy burden? what clues are we getting on the autumn statement? >> that speech yesterday was politically significant even if it was low-profile. it set the firing gun on the general election campaign, resetting his priorities, saying now that they've managed to cut inflation it was the bank of england that did that. it's time to think about tax cuts, laying the groundwork for the autumn statement. we heard from the chancellor at a conference yesterday. he was upbeat about the economy giving a nod to tomorrow. we heard from the business secretary jonathan reynolds. he batted away questions on tax cuts and reticent to say whether labor could afford its plans and

to make expenses permanent. that is the government's criticism of labor as we are talking about fiscal plans. that labor would have to borrow so much it would take us to a time like the liz truss era. kriti: we heard from andrew bailey. what do we get? >> rate hikes may not be done. he is trying to bat away talk of cuts saying that is premature, warning it could be a spike in price inflation, echoing the big dove. on the subject of one to cut interest rates i was talking to one official who said there watching the market curve. interestingly saying that markets have misinterpreted the language about data dependency,

they're not watching every blip in the data, they're looking at long-term trends and it is this misinterpretation leading to volatility. they say that is the failure not just with bank but central banks. it will be interesting to see whether this comes up with the review of the bank of england. kriti: if you talked to bloomberg economics or economists that cover the u.k. they will say boe stands out as more reactive. they seem to be pushing back against the consensus. lizzy burden all over that story, we thank you so much for walking us through it. going to stick with fiscal issues that lizzie was laying out because it's not just the u.k. story, it is european as well. france is at risk of flouting guidance with germany and italy

deemed not come i am. the watchlist list of countries scheduled for release today forms the opinion on the national budget for next year. i comes after suspension of the rules which limited deficits to 3% of gdp. something were watching closely as we talk about how you forecast this when it comes to currency. that is an important story for broader markets as is the tech story. let's talk about microsoft and stocks we are watching. yesterday's rally was a function of dollar weakness but also developments in ai and sam altman coming under the umbrella of microsoft. here's what it did to the stock. top panel shows stock price of microsoft and bottom panel shows strength. every circle indicates when the

market has brought microsoft to overbought. if you look at the share price it's led to a selloff. because microsoft is a big weight, the nasdaq, look at the last four timeshares have hit overbought, and lead to a selloff. we are hitting that level again after yesterday's rally pushed global equities higher in the european and asian session. does that set up the trade for pullback? were talking about technicals, that's what they will be exploring and we are waiting developments about where sam stands. that will be a big part of the story and that's just the fundamentals. tech stocks are at the whim of the dollar. dollar weakness is important as we talk about the fiscal deficit

concerns not just in the u.k. but united states. look at european currencies. we are on the cusp of 110, cable rate at 125. dollar weakness is so strong that is pushing dollar-yen away from the crucial 150 level boosting gold. 1991 on the precious metal. we will be monitoring but that is the market that you need to know about. in addition to tech spaces, coming up after the break openai telling staff it is in discussions to unify the company as investors angle for the return of sam altman. we will dive into it, this is bloomberg. you want to be able to provide your child with the tools or resources they need. with reliable internet at home, through the internet essentials program, the world opened up. fellas, fellas. that's how my son was able to find the hidden genius project. we wanted to give y'all the necessary skills

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kriti: welcome back to daybreak europe. let's get to the top stories. openai in discussions to reunify the company. microsoft ceo wants to partner with sam wherever he may end up. from tech to banking city cuts 300 roles. 10% of higher level jobs in the latest wave of jean frazier's revamp. in geopolitics a leader of hamas says the group is close to a truce agreement. heavy fighting continuing in the gaza strip. a lot across currency. geopolitics to the market to tech and banking, we will look at what it's doing to you less tours.

futures, weakness unchanged. optimism creeping into the session pulling away from u.s. futures. s&p unchanged, nasdaq as well. almost lower, virtually unchanged but futures underperforming. you saw a massive rally, a global rally continuing in asia. naturally it only makes sense to pull back a little bit and it deals like that is what futures are suggesting, sanguine momentum giving that it is thanksgiving. light volume trading around the world. bond market and cross asset story is different because you are seeing movements when it comes to the currency picture. dollar weakness is the story when it comes to fx. euro-dollar just shy of 110 higher by two tents of 1%. two-year yields are virtually unchanged and yet we are seeing

a massive pullback in the dollar. that is an unwind of positions builds up in terms of shorting the yen but given the lags, it is creating to the benefit of european currencies dollar-yen pulling back from 150 on the currency pair and gold benefiting from the weakness higher by 7/10 of 1%. when i think weaker dollar i think about higher tech. the incentive in the united states, we will see that factors in given the developments. that's where i want to go next and bring you the update. bloomberg has seen a memo sent to openai staff. employees are threatening a mutiny saying they will follow sam altman to microsoft unless the board resigns. investors are trying to return

altman into a leadership role. microsoft ceo would not object to sam going back to openai and microsoft is committed to working with him wherever he may be. >> we are leading in ai technology, we continue to be committed and to sam, greg, the team irrespective of where they are. sam chose multiple times to work with us and that is just fantastic. the real thing is that capability that microsoft has across the tech stack attracts great people like sam, innovators when it comes to ai to come to us. >> you hired sam as well as greg. rehearing sam wants to return, investors want him to return.

how would you feel? >> we want to partner with openai and sam, so irrespective of where he is he is working with microsoft, that is the case on friday and today. we believe that will be the case tomorrow. kriti: what conversations have you had with openai's current order? from their perspective where do things stand and have you talked with the new interim ceo? >> i have had conversations and there is no real difference from where we were, we were working with the interim ceo and sam was ceo. my message is clear, we remain committed to openai's mission and roadmap. they can count on us and we are committed to sam and greg and the team that want to join us.

if they are not at openai are anyone else wants to go anywhere else, we want them to work here in partnership with openai. kriti: why was sam fired? was he involved in wrongdoing? as the board given you a reason? >> as far as i'm concerned we are confident in sam in the leadership team. i have not been told about anything they published in openai that the board has not talked about. other then breakdown in communications and i was not told by their board about issues. i remain confident in sam and his leadership ability and that is why we want to welcome him to microsoft. kriti: we understand that to support a return microsoft wants

changes to the contract with openai. so selling like this never happens again. what are you looking for? a board seat? what else? >> governance changes. surprises are bad and we want to make sure things are done in a way that will allow us partner. the idea that changes have been without being in the loop is not good and we will have some changes that are needed have been and go along on the partnership. kriti: microsoft ceo speaking with emily chang. let's get more analysis. matt joins the program. talk about the valuations in the readthrough in terms of

fundamentals if he were to join microsoft or return to openai, what value does that add? >> almost impossible to answer. the important thing with microsoft is they are a multibillion dollar investment in openai. initial reaction to the news that sam will move to microsoft it was well-received so i think microsoft did this well and demonstrated that they recognize the value of this and whether sam is with them or at openai he has a spot in the rapidly developing industry. kriti: in terms of the move into the stock on the headlines that we had at 8 a.m. around the

european open in london nasdaq futures moved substantially on that microsoft stock soaring on the idea that sam altman would be a part of it. what would a potential devasting of that look like? is that on the table for microsoft, pulling out of their stake? >> what i've seen so far would suggest not and what we've seen with 500 plus employees they are going to leave openai. there might not be much left. though that you, the open ai investment might disintegrate anyway. there's a lot of moving parts in terms of protecting the investment. microsoft thinks it is the right

thing. they want to the at the forefront of ai development. whether that is microsoft or openai, shareholders would be open to that. you want to be open to the shift in microsoft lee controlling the initiatives going forward, and a better place to catch the value as the two proposition in that area. kriti: not only is microsoft in focus but so are nvidia earnings and similar to microsoft nvidia has seen a massive rise in just the last year. what can we expect? >> people expect a blowout. topping $16 billion in revenue.

coming from data center businesses which is the pivot into ai where they are unrivaled in driving the growth. there is demand for people building ai. as much as this quarter is about the fourth quarter revenue growth consensus is 200% year on year revenue growth, over $18 billion. expectations are on the margin, people expecting a beat in ratings. they're going to have to do incredibly well to surpass expectations. they are in a great position right now, demand is incredibly strong. they don't have too many rivals. they are in a great position. kriti: the market expects on

another beat after a series of raises. the market position for that so if they do not deliver is this the moment where nvidia has steam but their stock? matt from bloomberg intelligence, thank you for your analysis. i want to bring you other tech stories. tsmc considers a third plant in japan. that would make three nanometer chips. the move could turn the nation into a global chipmaking hub. they are in the process of building one in japan for less advanced chips. plans for a second facility having been reported earlier. justice department is seeking more than $4 billion from the cryptocurrency exchange to settle its investigation into money laundering. thank fraud and sanctions violations. binance founder could face criminal charges.

they deny the allegations. bloomberg learned that c3 ai has/jobs citing the need to cut costs. they say they manage performance and have over 100 open positions. coming up, and exclusive interview with a ceo that is crucial in light of the tech news we are getting. stick with us, this is bloomberg. ♪

♪ kriti: welcome back to daybreak europe. stocks have extended a powerful november rally that we've seen

in the last 24 hours. nasdaq hit a 22 month high. nvidia and microsoft are excelling. part of that has been massive earning stories and the other part has been a hunt for liquidity. something taking the global market space by storm. an important dynamic, how we are pricing in the market. you have tech leaders converging specifically for the campus tech leaders conference posted by euronext. it ceo joins us live for an exclusive interview. a pleasure to have you. good morning from london. i want to start off with the question around tech. walk us through the future of tech and trading. do >> technology is amazing and it is undervalued.

what happened in europe is fantastic. the convergence of the government money, the seed money, private equity money has created a floor saying values are. those companies are proceeding toward public markets 23 in europe in terms of ipo, the number of promising amazing technology companies that are undervalued for the moment proceeding toward the ipo market is really impressive and they will find their way to public markets in the beginning of 24. kriti: talk about liquidity. it feels like a no-brainer trade has been when things are looking tough when there is that

offensive player you go to the nasdaq, put in some orders and that is a liquidity pelee. how does euronext match that? >> there is a big misunderstanding. the liquidity pool accommodates market capitalization of 6.3 trillion euro. it is about twice the size of the exchange. three times the size of the frankfurt exchange. the single market is 10 million euros. approximately three times the size of trading in london and 25% of shares are trading on single liquidity.

so the platform for trading of stocks is euronext in europe. and overdone over the past few years. that is why we attract more international listing than anyone else. we have 12 listings, not from our own market. we issued 20 billion plus so 10 billion plus market cap. when it comes to liquidity as your pointing out, this is the largest liquidity pool in europe. kriti: are you seeing cracks in that story? you hearing this not just in europe but around the world in the bond market.

the idea that in the context of central banks pulling back liquidity, there seems to be a disconnect between markets, market makers, central banks in your seeing that across asset. is there evidence of that to you? >> the market has been less dynamic over the past few months than before. it is a transitional phase. reallocation of assets is happening within fixed income and equity. we have consensus pointing out to a pause in interest rate hikes which would have a positive act on markets. what we are observing is a sort of transition moment relating to the repositioning of consensus. i'm very confident about the dynamic of 24 kriti: euronext

and peers are talking about this very long project introduced 10 years ago. ecb president made a commentary advocating for a european version of the sec to regulate some markets. your take on a european version as well as consolidated take. two things christine lagarde has been advocating for. >> the debate is closed. there has been discussion within the council to find a compromise and the compromise is agreed. we will have in due course in europe pretrade real-time. that is the solution that will prevail.

for the provision there is debate. as far as euronext, we support the concept of a european supervision in the form of the sec. because of the european situation that is very distinct and differentiated not every single market will have to go to european supervision. some companies would prefer to remain supervised by supervisors but floor companies but for wide organizations the provision is a must have been we go to support the industries of christine lagarde. kriti: can you speak to integration of force tally on a within your empire?

>> it is the euronext construct. that was very impressive contribution. we welcome the third largest economy in europe and that has created skills. in terms of numbers we said we will deliver 60 million by 24. now by the end of 23 we will deliver 70 million when you're ahead of schedule. we have revised targets for 24. we are very confident and we confirm to markets that we will achieve those numbers but beyond the numbers the group is fully integrated. within the next few days euronext will have integrated a value proposition for the clearing of cash equity trading

within euronext clearing. he will have an integrated value proposition for derivatives. so this transformation of the company which is the leader in european listing and trading for equities but also a leader in fixed income classes like court bonds. one of the main contributions was the fixed income so the electronic platform which is amazing. it's going to be the platform -- kriti: right. it is certainly something were keeping our eyes on. i'm sorry we have to leave the conversation. euronext ceo, we thank you. more after the break, stick with us, this is bloomberg. ♪

kriti: one market thought i want to leave you with. when you talk about what is moving the markets dollar weakness seems to be the story but it's not that pricing. in the last 24 hours the two year yield stabilizes. the dollar continues to weaken pushing the cable higher and strengthening the japanese yen. if it is not fed pricing what is it? traders pulling back on positioning, shorting the yen and having a longer dollar position get cold out. up next markets today. anna edwards and tom mackenzie. this is bloomberg. ♪

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