WEBVTT - Wall Street Awaits Inflation Data; Nike Sinks on Forecast

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<v Speaker 1>Good morning.

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<v Speaker 2>I'm Nathan Hager and I'm Karen Moscow. Here are the

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<v Speaker 2>stories we're following today.

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<v Speaker 3>Karen, the drop in futures closing out this trading week

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<v Speaker 3>comes ahead of a closely watched inflation gage for the

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<v Speaker 3>Federal Reserve. The Core Personal Consumption Expenditures price index is

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<v Speaker 3>forecast to have fallen to three point three percent in November.

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<v Speaker 3>That's from three and a half percent the prior month.

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<v Speaker 3>The economists say that could bolster expectations for FED rate cuts

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<v Speaker 3>next year. Former Dallas FED President Robert Caplan says, despite

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<v Speaker 3>this morning's report, he expects the Fed to be patient.

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<v Speaker 4>The Fed is going to need to see at least

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<v Speaker 4>two or three months more of continued improvement. I think

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<v Speaker 4>tomorrow will probably be good news, but they're going to

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<v Speaker 4>need to see sustained improvement before they're going to be

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<v Speaker 4>willing to take more action. And so I think the

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<v Speaker 4>market should expect that it's going to take a while

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<v Speaker 4>and more sustained improvement before the Fed does something.

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<v Speaker 3>Former Dallas Fed chief Bob Kaplan's as markets overreacted to

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<v Speaker 3>FED share j Powell's comments earlier this month on rate cuts.

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<v Speaker 2>Well in Europe Nathan's speculation is growing this morning that

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<v Speaker 2>the Bank of England may cut interest rates as soon

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<v Speaker 2>as this ring, and that's because the UK economy unexpectedly

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<v Speaker 2>shrank in a third quarter. Dan Hansen is a senior

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<v Speaker 2>economist for a Bloomberg News.

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<v Speaker 5>We've been having this conversation about recession for a while.

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<v Speaker 5>I think we'll move on from it in the first

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<v Speaker 5>half of twenty twenty four, which is obviously a good

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<v Speaker 5>news story. But as things stand, obviously just looking at

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<v Speaker 5>this data, it is a little bit worse than expected,

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<v Speaker 5>and it does raise the risk of two consecutive quarters

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<v Speaker 5>of negative growth, the sort of definition of a technical recession.

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<v Speaker 2>And Bloomberg New senior economist Dan Hansen says revised figures

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<v Speaker 2>show GDP dropped a tenth of up percent from the

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<v Speaker 2>second quarter, a downgrade from the zero growth initially estimated.

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<v Speaker 1>All right, Karen, that let's get to the latest from

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<v Speaker 1>the Middle East.

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<v Speaker 3>The US is signaling it can now support a UN

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<v Speaker 3>Security Council resolution to increase aid into Gaza. This proposal

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<v Speaker 3>has been delayed several time times, but a vote could

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<v Speaker 3>come as soon as today. White House National Security Spokesman

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<v Speaker 3>John Kirby says the US still wants Israel to move

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<v Speaker 3>to a different phase of fighting with Hamas.

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<v Speaker 6>We're not going to speak for their military operations. We

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<v Speaker 6>recognize and they recognize that a transition is not only reasonable,

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<v Speaker 6>but probably the most viable way to continue this fight.

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<v Speaker 1>John Kirby at the White House.

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<v Speaker 3>Now, the latest draft of the Security Council resolution calls

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<v Speaker 3>for creating the conditions for a sustained cessation of hostilities.

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<v Speaker 3>The US had been opposed to specific language for a ceasefire. Meanwhile,

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<v Speaker 3>the Hamas run health ministry in Gaza says more than

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<v Speaker 3>twenty thousand people have been killed in the territory since

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<v Speaker 3>the October seventh attack on Israel.

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<v Speaker 2>Well Nathan, the US is preparing to lift a ban

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<v Speaker 2>on weapons sales to Saudi Arabia. On Bloomberg's Amy Morris

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<v Speaker 2>has more from Washington.

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<v Speaker 7>Officials tell The New York Times the Biden administration is

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<v Speaker 7>prepared to relax some restrictions after taking note of Saudi

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<v Speaker 7>Arabia's de facto ceasefire with the Houthi militia in Yemen.

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<v Speaker 7>President Biden imposed the ban on the sale of certain

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<v Speaker 7>weapons two years ago, concerned that US weapons were being

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<v Speaker 7>used against civilians in Yemen. The US did not say

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<v Speaker 7>when the easing of the band might happen, and it

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<v Speaker 7>can be reversed at any time if the President decides

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<v Speaker 7>it's not in US interests. Saudi Arabia is the largest

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<v Speaker 7>buyer of American weapons in Washington. Amy Moore as Bloomberg.

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<v Speaker 1>Radio, Okay, mee, thank you.

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<v Speaker 3>Meanwhile, closer to home, President Biden's preparing to send a

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<v Speaker 3>team to Mexico to talk immigration. Bloomberg said, Baxter has

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<v Speaker 3>that story.

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<v Speaker 8>The mission comes after a conversation with Mexico's President Lopez

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<v Speaker 8>opened the door with increasing pressure as well to get

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<v Speaker 8>something done regarding immigration. NSC spokesman John Kirby says it

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<v Speaker 8>will be top officials prison.

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<v Speaker 6>Biden has asked Secretary of State Tony Blinken, Secretary of

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<v Speaker 6>Homeland Security Alejandro Majorcis, and White House Homeland Security Advisor

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<v Speaker 6>Liz Sherwood Randall to travel to Mexico in coming days.

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<v Speaker 8>Kirby says the trip will take place as soon as possible.

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<v Speaker 8>Ed Baxter, Bloomberg.

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<v Speaker 2>Radio, All righted, thanks we all. Turning to corporate news

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<v Speaker 2>now shares a Nike down eleven and a half percent

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<v Speaker 2>in early trading, the sportsware giant is forecasting revenue to

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<v Speaker 2>be down slightly in the fiscal third quarter and up

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<v Speaker 2>in low single digits in the fourth quarter. Punham Goyle

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<v Speaker 2>is a senior US e commerce and retail analyst at

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<v Speaker 2>Bloomberg Intelligence.

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<v Speaker 9>They're still only expecting revenues to be up one percent,

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<v Speaker 9>and that's a function of two things. One an uncertain

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<v Speaker 9>macro and two weaker China. So those two things together

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<v Speaker 9>is what's raising browse here because China, as everyone knows,

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<v Speaker 9>is a real area of growth for them.

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<v Speaker 2>And Bloomberg Intelligence and Spoonhem Goyle says. Nike is also

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<v Speaker 2>taking steps to streamline the organization and that's expected to

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<v Speaker 2>result in pre tax restructuring charges of about four hundred

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<v Speaker 2>to four hundred and fifty million dollars.

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<v Speaker 1>Well, Karen, we're.

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<v Speaker 3>Also seeing some other sporting goods companies follow after that

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<v Speaker 3>disappointing Nike forecast. In Europe, shares of Adidas are down

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<v Speaker 3>nearly six percent, Pumas down about four to five and

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<v Speaker 3>a half percent, should say. And here in the US

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<v Speaker 3>in early trading, we're watching shares a foot Locker. They

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<v Speaker 3>are down six and two thirds percent. Under Armour is

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<v Speaker 3>down about five percent, Dick Sporting Goods lower by more

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<v Speaker 3>than four percent.

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<v Speaker 2>Well, Nathan Elon Musk is lashing out at the state

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<v Speaker 2>of US financial market. Speaking to Our Investment Management CEO

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<v Speaker 2>Kathy Wood during a discussion on his social media platform X,

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<v Speaker 2>Musk complained about the scrutiny facing listed companies.

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<v Speaker 10>There's a lot of pressure, like an immense pressure on

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<v Speaker 10>a public company to not have a bad quarter. So

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<v Speaker 10>this can actually result in a less efficient operation where

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<v Speaker 10>you're going to great lengths at the end of quarter

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<v Speaker 10>to not disappoint people. You know, that's just just how

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<v Speaker 10>it goes.

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<v Speaker 2>And Musk says keeping SpaceX private has also allowed him

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<v Speaker 2>to take more appropriate risk compared with the publicly traded

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<v Speaker 2>Tesla and.

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<v Speaker 3>Ten Cent Holdings is leaning an eighty billion dollars sell

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<v Speaker 3>off in some of China's biggest online names. That's after

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<v Speaker 3>China ensued a surprise imposition of new gaming curbs.

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<v Speaker 1>This is Bloomberg Porry.

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<v Speaker 2>Nathan thanks time now for a look at some of

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<v Speaker 2>the other stories making news around the world, and for

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<v Speaker 2>that we're joined by Bloomberg's Amy Morris.

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<v Speaker 1>Amy, Good morning, Good morning, Karen.

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<v Speaker 7>Increasing security concerns across the US. Deputy US Attorney General

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<v Speaker 7>Lisa Monico says the biggest concern now is lone wolves

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<v Speaker 7>and small groups acting with little to no notice.

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<v Speaker 11>Since October seventh, the FBI has received more than eighteen

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<v Speaker 11>hundred report of threats or other types of tips or

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<v Speaker 11>leads that are somehow related to or having access to

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<v Speaker 11>the current conflict.

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<v Speaker 7>Deputy Attorney General Lisa Monicco was talking with ABC's This Week,

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<v Speaker 7>which you can hear each Sunday afternoon here on Bloomberg Radio.

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<v Speaker 7>Former Trump attorney Rudy Giuliani has filed for bankruptcy protection

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<v Speaker 7>after a court ordered Our court ordered him to pay

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<v Speaker 7>nearly one hundred and fifty million dollars for defaming two

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<v Speaker 7>Georgia election workers. Loyola law professor Laurie Levinson says that

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<v Speaker 7>doesn't ness necessarily let Juliani off the hook.

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<v Speaker 12>Finally, the bankruptcy might delay things, but ultimately, if his

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<v Speaker 12>creditors can find assets that he does have, then they'll

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<v Speaker 12>be able to go after those, either in the bankruptcy

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<v Speaker 12>proceedings or otherwise.

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<v Speaker 7>Among the creditors Julianni lists are the Internal Revenue Service

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<v Speaker 7>and Hunter Biden. Apple has now pulled its Apple Watches

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<v Speaker 7>Series nine and Ultra iiO models from its online store

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<v Speaker 7>to meet a ban ordered by the International Trade Commission.

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<v Speaker 7>As Bloomberg's Scott Carr tells us, many of the watches

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<v Speaker 7>are now also out of warranty.

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<v Speaker 13>The ban on the Apple smart watches also means the

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<v Speaker 13>company is not allowed to fix models out of warranty.

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<v Speaker 13>Apple's customer service teams were told in a memo this

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<v Speaker 13>week that the company will no longer replace out of

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<v Speaker 13>warranty models going back to the Apple Watch Series six.

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<v Speaker 13>The company will still offer help. It can be done

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<v Speaker 13>via software, such as reinstalling the operating system. The ban

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<v Speaker 13>affects most new Apple watches sold since twenty twenty that

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<v Speaker 13>the ITC says includes a blood ox and censor that

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<v Speaker 13>violates a patent held by Massimo, Scott car Bloomberg Radio.

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<v Speaker 7>And the Food and Drug Administration has seized thousands of

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<v Speaker 7>units of counterfeit o zepic, a diabetes drug from Novo Nordisk.

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<v Speaker 7>It's been adapted into a weight loss treatment. As you've heard,

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<v Speaker 7>the FDA warns wholesalers, retail pharmacies, healthcare practitioners, and patients

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<v Speaker 7>check your products. Make sure they're not fake. The FDA

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<v Speaker 7>and Novo are testing seized products and they don't have

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<v Speaker 7>any information yet about their identity, quality or safety. Global

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<v Speaker 7>news twenty four hours a day and whenever you want

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<v Speaker 7>it with Bloomberg News Now. I'm Amy Morris and this

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<v Speaker 7>is Bloomberg Karen.

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<v Speaker 2>Sorry to Amy. Thank you what we do bring you

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<v Speaker 2>news throughout the day here on Bloomberg Radio. But now,

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<v Speaker 2>as Amy said, you can get the latest news on

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<v Speaker 2>demand whenever you want it. Just subscribe to Bloomberg News

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<v Speaker 2>Now to get the latest headlines at the click of

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<v Speaker 2>a button. Get informed on your schedule. You can listen

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<v Speaker 2>and subscribe to Bloomberg News Now on the Bloomberg Business app,

0:08:55.679 --> 0:08:59.680
<v Speaker 2>Bloomberg dot Com, plus apples, Spotify, and anywhere else you

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<v Speaker 2>get your podcast. Time now for the Bloomberg Sports Update

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<v Speaker 2>with John stash Hour John Karen.

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<v Speaker 14>The LA Dodgers have been in the baseball postseason eleven

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<v Speaker 14>straight years. They have just the one World Series championship

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<v Speaker 14>to show for it. That in the COVID shortened twenty

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<v Speaker 14>twenty season. Making an effort to be better in October,

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<v Speaker 14>have they ever spent money in this offseason? They acquired

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<v Speaker 14>Tyler Glass now from Tampa Bay.

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<v Speaker 1>They gave him a.

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<v Speaker 14>New contract for one hundred and thirty six million dollars.

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<v Speaker 14>They of course added Sho hey Otani price tag seven

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<v Speaker 14>hundred million, and now they've added another Japanese player, twenty

0:09:38.120 --> 0:09:42.560
<v Speaker 14>five year old pitcher Yashinobu Yamamoto. Dodgers haven't conferred the deal,

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<v Speaker 14>but several media reports it's twelve years, three hundred and

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<v Speaker 14>twenty five million, So betwe the two Japanese players. The

0:09:49.640 --> 0:09:53.760
<v Speaker 14>Dodgers pledged to pay a total of over a billion dollars. Yamamoto,

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<v Speaker 14>pitching for the ORYX Buffaloes last year, won sixteen games,

0:09:57.440 --> 0:10:00.800
<v Speaker 14>pitched to a one point two to one baseball with

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<v Speaker 14>some rule changes for twenty twenty four, the pitchclock with

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<v Speaker 14>men on base reduced from twenty seconds to eighteen now,

0:10:07.080 --> 0:10:10.960
<v Speaker 14>wider runner lane towards first base, and mound visits reduced

0:10:10.960 --> 0:10:14.440
<v Speaker 14>from five to four. Thursday Night football in La easy

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<v Speaker 14>win for the Rams. Saints scored a couple of late touchdowns,

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<v Speaker 14>but the Rams won thirty to twenty two. Matthew Stafford

0:10:20.480 --> 0:10:22.160
<v Speaker 14>through for three hundred and twenty eight yards. The Rams

0:10:22.160 --> 0:10:24.080
<v Speaker 14>were three and six. They've now won five of their

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<v Speaker 14>last six and at eight and seven, they're very much

0:10:26.679 --> 0:10:30.040
<v Speaker 14>in it for a wildcar Clippers nine game winning street

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<v Speaker 14>came to an end. They lost at Oklahoma City. The

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<v Speaker 14>Lakers played without Lebron James. They lost at league leading

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<v Speaker 14>Minnesota Johns. Dasheller Bloomberg's four.

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<v Speaker 8>From Coast to coast, from New York to San Francisco,

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<v Speaker 8>Boston to Washington, DC, nationwide on SYRIASXAM.

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<v Speaker 1>The Bloomberg Business app in Bloomberg dot Com. This is

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<v Speaker 1>Bloomberg Daybreak. Good morning, I'm Nathan Hager.

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<v Speaker 3>Now two and a half months into the war in Gaza,

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<v Speaker 3>Israel continues to face pressure to move its fight with

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<v Speaker 3>Hamas into a less intense phase. The UN is moving

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<v Speaker 3>closer to a resolution to bring more aid into the territory,

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<v Speaker 3>and The New York Times is reporting that the US

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<v Speaker 3>is preparing to lift a ban on offensive arm sales

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<v Speaker 3>to Saudi Arabia as red sea shipping comes under greater attack.

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<v Speaker 3>And for more on all this, we were joined by

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<v Speaker 3>Bloomberg New Senior editor Bill Ferries. Bill, good morning. First off,

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<v Speaker 3>what's the latest on this Security Council resolution on Gaza aid?

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<v Speaker 3>This has been under debate all week long, hasn't it?

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<v Speaker 1>It has?

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<v Speaker 15>And if you remember earlier this month, the US was

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<v Speaker 15>the only country voting against and effectively vetoing a UN

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<v Speaker 15>Security Council resolution that was calling for an immediate ceasefire

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<v Speaker 15>in the Israel Hamas war. Even US allies didn't stand

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<v Speaker 15>in the way of that resolution. So they've been trying

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<v Speaker 15>to hammer out something all week that could pass, and

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<v Speaker 15>it looks like there could be a vote Friday that

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<v Speaker 15>US said it could support support a resolution that would

0:12:02.800 --> 0:12:07.800
<v Speaker 15>beef up aid deliveries to Gaza, and we don't have

0:12:07.880 --> 0:12:12.800
<v Speaker 15>all the details, but which would presumably involve some sort

0:12:12.920 --> 0:12:16.960
<v Speaker 15>of a cessation of hostilities. Right now, the draft that

0:12:17.000 --> 0:12:21.760
<v Speaker 15>we've seen talks about working towards some kind of a ceasefire,

0:12:21.840 --> 0:12:25.319
<v Speaker 15>so not declaring one at the outset, but that's been

0:12:25.360 --> 0:12:28.040
<v Speaker 15>the goal along for most of the countries involved in

0:12:28.040 --> 0:12:31.680
<v Speaker 15>this process. And we'll have to see what the final

0:12:31.760 --> 0:12:35.400
<v Speaker 15>draft is later today and whether that goes down for

0:12:35.440 --> 0:12:39.000
<v Speaker 15>a vote. But the US Ambassador to the UN signaling

0:12:39.240 --> 0:12:43.040
<v Speaker 15>late last night that the US is likely to support

0:12:43.120 --> 0:12:43.920
<v Speaker 15>such an effort.

0:12:44.120 --> 0:12:47.320
<v Speaker 3>What's the practical impact of a resolution like this when

0:12:47.320 --> 0:12:51.439
<v Speaker 3>we are hearing comments from a White House National Security

0:12:51.480 --> 0:12:54.680
<v Speaker 3>spokesman John Kirby, the Secretary of State Antony Blincoln and

0:12:54.800 --> 0:12:58.360
<v Speaker 3>others calling on Israel to at least de intensify the

0:12:58.400 --> 0:13:00.760
<v Speaker 3>war with Gaza, the war in Gaza.

0:13:01.720 --> 0:13:05.839
<v Speaker 15>Yeah, you've seen the US, particularly for for weeks now,

0:13:05.880 --> 0:13:10.000
<v Speaker 15>trying to straddle this divide between signaling its support for

0:13:10.160 --> 0:13:12.360
<v Speaker 15>Israel and saying it has, you know, continues to have

0:13:12.400 --> 0:13:15.760
<v Speaker 15>the right to defend itself after those October seventh attacks

0:13:15.800 --> 0:13:19.960
<v Speaker 15>by Hamas, but also signaling its real concern about the

0:13:20.040 --> 0:13:24.480
<v Speaker 15>rising civilian death toll. And increasingly in recent weeks you've

0:13:24.480 --> 0:13:28.720
<v Speaker 15>seen the focus of that balancing act shift towards the

0:13:28.760 --> 0:13:32.800
<v Speaker 15>civilian death toll. And you basically have both President Biden

0:13:33.280 --> 0:13:37.120
<v Speaker 15>last week before a group of fundraisers and Secretary of

0:13:37.120 --> 0:13:40.720
<v Speaker 15>Saint Anthony Blincoln this week saying that they really need

0:13:40.760 --> 0:13:41.960
<v Speaker 15>to see a more.

0:13:41.800 --> 0:13:44.800
<v Speaker 1>Targeted approach by Israel Israel.

0:13:44.840 --> 0:13:48.520
<v Speaker 15>They you know, they're talking about Israel going after AMAS leader,

0:13:48.559 --> 0:13:53.559
<v Speaker 15>specific Hamas leaders, rather than maybe the broader bombing campaign

0:13:53.640 --> 0:13:56.960
<v Speaker 15>that we saw in the first several weeks and in

0:13:57.120 --> 0:13:59.199
<v Speaker 15>actually the first two months of this conflict.

0:13:59.440 --> 0:14:01.360
<v Speaker 3>Bill What more can we say about this New York

0:14:01.400 --> 0:14:04.000
<v Speaker 3>Times report that the Biden administration is getting ready to

0:14:04.040 --> 0:14:07.800
<v Speaker 3>lift an offensive weapons ban on Saudi Arabia. This has

0:14:07.840 --> 0:14:10.440
<v Speaker 3>to be related to some of the turmoil we're seeing

0:14:10.440 --> 0:14:11.680
<v Speaker 3>in the Red Sea, doesn't it.

0:14:12.720 --> 0:14:12.920
<v Speaker 11>Yeah.

0:14:12.960 --> 0:14:16.440
<v Speaker 15>Absolutely, It's really interesting because you know, it shows how

0:14:16.440 --> 0:14:18.840
<v Speaker 15>the world has changed in just a few years, Just

0:14:18.880 --> 0:14:21.520
<v Speaker 15>two or three years ago, when there was a lot

0:14:21.520 --> 0:14:26.120
<v Speaker 15>of frustration in the US about about the Saudi led

0:14:26.240 --> 0:14:29.960
<v Speaker 15>war against the Huti Rebels and Yemen. It was considered

0:14:30.000 --> 0:14:33.000
<v Speaker 15>one of the world's biggest humanitarian disasters at the time.

0:14:33.960 --> 0:14:37.040
<v Speaker 15>And you know, in the time since, there's been a

0:14:37.040 --> 0:14:39.600
<v Speaker 15>little bit of a shift I think on Saudi Arabia's part,

0:14:39.640 --> 0:14:42.680
<v Speaker 15>in particular, since this band went into a place where

0:14:43.080 --> 0:14:46.600
<v Speaker 15>they are, they have been more recently trying to find

0:14:46.600 --> 0:14:51.480
<v Speaker 15>a diplomatic approach to the Huti Rebels. And you know,

0:14:51.560 --> 0:14:55.000
<v Speaker 15>the focus that Crown Prince Mohammed ben Salman had on

0:14:55.080 --> 0:14:59.880
<v Speaker 15>persecuting a war has really changed now. So the Biden

0:15:00.000 --> 0:15:03.960
<v Speaker 15>administration's argument seems to be, you know, the reason that

0:15:04.000 --> 0:15:06.880
<v Speaker 15>we put this ban in place no longer really exists.

0:15:06.960 --> 0:15:09.160
<v Speaker 15>We can put it back in if we need to.

0:15:09.880 --> 0:15:14.120
<v Speaker 15>But I think they're really trying to leverage the alliance

0:15:14.760 --> 0:15:17.800
<v Speaker 15>or the partnership with the saudis to try to get

0:15:17.800 --> 0:15:19.800
<v Speaker 15>them in a place where maybe they can put a

0:15:19.800 --> 0:15:22.520
<v Speaker 15>little bit more pressure on the Hooties the Red Sea.

0:15:23.160 --> 0:15:26.240
<v Speaker 15>It's really become a major crisis for global shipping. It's

0:15:26.280 --> 0:15:30.400
<v Speaker 15>become something that threatens supply chains once again. It has

0:15:30.440 --> 0:15:35.040
<v Speaker 15>a potential impact on inflation and obviously threatens human lives.

0:15:35.080 --> 0:15:39.720
<v Speaker 15>If these attacks on ships passing through that region continue,

0:15:39.720 --> 0:15:41.920
<v Speaker 15>it has the really the bigger issue is it has

0:15:41.920 --> 0:15:47.280
<v Speaker 15>the risk of expanding this war to a much broader area.

0:15:47.520 --> 0:15:50.440
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