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Speaker 1: Live from the Bloomberg Interact at Broker's Studios. This is

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Speaker 1: Bloomberg day Break for Thursday, March ninth. Coming up today,

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Speaker 1: President Biden targets the wealthy and his budget proposal unveiled today.

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Speaker 1: Senate Minority Leader Mitch mcconnellis hospitalized, and we have the

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Speaker 1: latest credit Sweets delays, It's Samuel Report and Silvergate. Capitol

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Speaker 1: plunges as it winds down operations. Manhattan jury deliberates the

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Speaker 1: death penalty. Get a deadly twenty seventeen truck attack, plus

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Speaker 1: Russia unleasha's massive missile attacks on Ukraine. I'm John Tucker Morahan,

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Speaker 1: Upton's stashowered Sports at the Big East Tournament, Saint John's

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Speaker 1: one Seaton Hall Law Syracuse announced the end of Jim

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Speaker 1: Beyond's long coaching career. That's all straight Ahead on Bloomberg

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Speaker 1: day Break, The business news you need disturn your day,

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Speaker 1: and just one fifteen minute podcast each pointing on Apples, Spotify,

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Speaker 1: The Bloomberg Business Appen everywhere you get your podcasts. Good morning,

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Speaker 1: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 1: stories we're following today. We begin with politics. This morning,

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Speaker 1: President Biden unveils his budget proposal this afternoon, and already

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Speaker 1: we're hearing it'll target new tax increases on billionaires. Amy

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Speaker 1: Morris has details from our Bloomberg ninety nine one newsroom

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Speaker 1: in Washington. How Speaker Kevin McCarthy says he wants to

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Speaker 1: see budgetary solutions. We can no longer ignore the major

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Speaker 1: problem that we have the size of our debt. But

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Speaker 1: what President Biden is suggesting might not be what McCarthy

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Speaker 1: had in mind. White House sources tell Bloomberg News Biden's

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Speaker 1: plan calls for a twenty five percent minimum tax on billionaires,

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Speaker 1: doubles the capital gains tax rate for investment from twenty

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Speaker 1: percent to more than thirty nine percent, and it raises

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Speaker 1: income taxes on corporations and wealthy Americans. The proposal has

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Speaker 1: little chance of passing Congress, but it foreshadows democrats strategy

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Speaker 1: ahead of debt sealing negotiations in Washington. I'm Amy Morris,

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Speaker 1: Bloomberg Daybreak. Amy, thank you, I'll staying in Washington. Now.

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Speaker 1: We have word overnight that Senate Minority Leader Mitch McConnell

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Speaker 1: has been hospitalized. We get the latest on this developing

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Speaker 1: story with Bloomberg. Steve Rappaport, Good morning, Steve, Good morning,

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Speaker 1: Karen and Nathan. Senator McConnell's spokesman says the Kentucky Republican

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Speaker 1: trip during a private dinner at a DC area hotel

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Speaker 1: last night, but did not elaborate further on his condition.

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Speaker 1: This isn't the first health scare for McConnell. The minority

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Speaker 1: leader tripped outside his home in twenty nineteen, fracturing his shoulder.

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Speaker 1: He also underwent triple bypass surgery twenty years ago. The

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Speaker 1: eighty one year olds served as majority leader under President Trump.

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Speaker 1: Live in New York Times. Steve Rappaport, Bloomberg Daybreak, Steve. Thanks,

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Speaker 1: Now we turned to the latest on global geopolitical tensions.

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Speaker 1: The US says China will deepen its ties with Russia

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Speaker 1: despite global pressure to the contrary. Bloomberg Z Baxter has

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Speaker 1: the story. The Director of National Intelligence, Avril Hanes, says,

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Speaker 1: despite the global backlash, China will maintain its diplomatic, defense, economic,

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Speaker 1: and technological cooperation with Russia. The IC assesses that China's

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Speaker 1: long term economic growth will continue to decelerate because China's

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Speaker 1: era of rapid catch up growth is ending in structural

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Speaker 1: issues such as debt, demographics, inequality, overreliance on investment, and

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Speaker 1: suppressed consumption remain. Haynes says the two feel they need

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Speaker 1: each other. In San Francisco, I'm at Baxter Bloomberg Daybreak,

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Speaker 1: Very good. Thanks well, let's stick with China now and

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Speaker 1: turn to the economy. Consumer and producer prices in China

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Speaker 1: came in softer than expected for February. Bloomberg Daybreak Asia

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Speaker 1: anchor Brian Curtis has more from Hong Kong. If you're

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Speaker 1: worried that China's reopening would restoke inflation globally, think again.

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Speaker 1: CPI rose just one percent, well below estimates. PPI came

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Speaker 1: in at one point four percent. Also amiss, Betty Wong,

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Speaker 1: senior China economist at an ZT Bank. The pop demand

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Speaker 1: during the Chinese sto here might be sating quickly. Food

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Speaker 1: costs fell after the holiday, and crude oil declined now.

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Speaker 1: Bloombery Economics says these conditions will likely prevail for several months,

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Speaker 1: but pressures will build in the second half. Was CPI

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Speaker 1: approaching the government's three percent target in On Kong, Brain Curtis,

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Speaker 1: Bloomberg Daybreak, Thank you, Brian back here in the US,

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Speaker 1: we may be close again on a choice for the

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Speaker 1: next Vice chair of the Federal Reserve. Bloomberg News has

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Speaker 1: learned Northwestern University professor Janie Everley is the front runner.

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Speaker 1: Everley was chief economist at the Treasury Department under President Obama.

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Speaker 1: She would succeed Lyle Brainerd, who is now President Biden's

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Speaker 1: top economic aid. Well over in Europe this morning, Nathan

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Speaker 1: shares of Credit suis or down almost five percent. This

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Speaker 1: wasss Lander is delaying its annual report, and we go

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Speaker 1: live to Bloomberg's You and Pots in London for the

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Speaker 1: very latest you and good morning, Good morning, Karen and Nathan.

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Speaker 1: Credit Suiz was due to publish its annual reports and

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Speaker 1: conversation details this morning, but the bank says it received

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Speaker 1: a late cool from the SEC yesterday evening. The US

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Speaker 1: regulator had comments and questions about revisions Credit Suits made

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Speaker 1: to cash flow statements related to previous financial years. The

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Speaker 1: question mark over the accounts comes to the bank undergoes

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Speaker 1: another complex restructuring. Management says a brief delay is prudent.

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Speaker 1: In London, i'mum puts in bookday break, Thanks you and

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Speaker 1: let's stay with banks and turn our attention now to

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Speaker 1: JP Morgan. The firm is suing former executive Staley over

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Speaker 1: his ties to disgraced financier Jeffrey Epstein. JP Morgan's demanding

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Speaker 1: Staley returned all his compensation over an eight year period.

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Speaker 1: That's more than eighty million dollars. Just weeks ago, JP

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Speaker 1: Morgan was defending Staley against accusations that he knew about

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Speaker 1: Epstein's sex crimes. Staley has denied knowledge of Epstein's abuse. Well.

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Speaker 1: Shares of Silvergate Capital are plunging this morning, Nathan. They're

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Speaker 1: down more than forty three percent on news the firm

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Speaker 1: plans to wind down operations. They get the latest live

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Speaker 1: with Bloomberg's Danish Schwartzman Dan. Good morning, Good morning, Karen,

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Speaker 1: and Nathan. Silvigate Capital is liquidating its crypto bank now.

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Speaker 1: Silvergate was forced to sell off assets at a loss

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Speaker 1: enclosed its payments network after a criminal investigation by the

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Speaker 1: Justice Department into its dealings with Sam bankman Fried's FTX

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Speaker 1: and Alimeter Research. While no wrongdoing was found, Silvergate's crypto

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Speaker 1: deposits fled, while crypto firms stopped accepting or initiating payments

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Speaker 1: through Silvergate the bank, though says it will fully repay

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Speaker 1: all deposits. Live in New York. Dan Schwartzman, Bloomberg Daybreak.

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Speaker 1: Thanks Dan and black Rock's turning greater attention to the ridge.

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Speaker 1: The world's largest asset managers starting two private equity firms

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Speaker 1: in Europe targeting wealthy individuals looking for alternative investments. While

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Speaker 1: rich individuals in Europe allocate less than two percent of

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Speaker 1: their portfolios to alternative assets, a black Rock executive tells

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Speaker 1: us that could rise to about twenty percent over time.

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Speaker 1: This is Bloomberg. Thirty three degrees in New York. We

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Speaker 1: have a mix of sun and clouds today in a

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Speaker 1: high near fifty. We'll get down to till the low

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Speaker 1: thirties again tonight under a party, cloudy sky. Time Now

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Speaker 1: to take a look at some of the other stories

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Speaker 1: making news in New York and around the world with

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Speaker 1: Bloomberg's John Tucker. Good Morning, John, Good morning. Nathan. Jurors

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Speaker 1: now deciding whether it's say Fellow said Path deserves the

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Speaker 1: death penalty for a twenty seventeen terror attack that killed

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Speaker 1: eight people along in New York City bike path. In

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Speaker 1: a note to the judge, Jurors asked if they could

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Speaker 1: discuss the Biden administration's moratorium on carrying out federal executions.

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Speaker 1: I also wanted to know if it was okay to

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Speaker 1: discuss lethal injection as the method of death in both cases.

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Speaker 1: The judge said no and sent the jury back, deliberating.

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Speaker 1: There's some changes being made in Rochester after a deadly

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Speaker 1: stampede last weekend at a rap concert, two women were killed.

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Speaker 1: Ronchester Police Chief David Smith says he's will revoked the

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Speaker 1: license of the concert venue where the stampede occurred. This

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Speaker 1: denial means that the Main Street armory can no longer

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Speaker 1: host any public entertainment, pending a complete and thorough review

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Speaker 1: of this matter. Chief Smith says a third woman was

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Speaker 1: critically injured. Russia launched its first massive missile attack in

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Speaker 1: almost a month early today against cities across Ukraine. At

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Speaker 1: least five people were killed. They were also left without power.

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Speaker 1: The five were killed in their homes near Leviv in

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Speaker 1: western Ukraine as a Russian missile hit a residential area.

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Speaker 1: Forecast you say, another atmospheric river taking aim at northern

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Speaker 1: and central California. It's also expended to arrive early this morning.

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Speaker 1: This comes after massive snowstorms that live people in some

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Speaker 1: mountain communities trapped in their homes without power for days.

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Speaker 1: Madeira County's Sheriff, Tyson Poges has areas under evacuation warnings

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Speaker 1: because of flooding concerns. This gives them plenty of notice

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Speaker 1: for them to pa pack their belongings, get their critical

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Speaker 1: stuff together, any identification, medication, things that they have to

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Speaker 1: have for their own survival. Shared Pogues has massive amounts

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Speaker 1: of snow will melt all at the same time. Defense

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Speaker 1: Secretary Lloyd Austin is due in Israel today for a

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Speaker 1: meeting with the Israeli Defense Minister. It'll be a shortened

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Speaker 1: visit because a massive protests across Israel over the government's

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Speaker 1: plan to cut the power of the Supreme Court. The

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Speaker 1: chief of the Army also expressing alarm over a threat

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Speaker 1: from military reservists to withhold service. Investors have even started

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Speaker 1: to withdraw funds from Israel Global News twenty four hours

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Speaker 1: a day, power and buy more than twenty seven hundred

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Speaker 1: journalists and analysts at over one hundred twenty countries. I'm

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Speaker 1: John Tucker, DC is Bloomberg, Nathan, thank you, John Semper,

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Speaker 1: Bloomberg Sports Update now brought to you by Tri State

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Speaker 1: OUTI Good Morning, John stash Hour Morning Night a Night

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Speaker 1: March Madness, Ncuba A tournament will be out. The bracket

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Speaker 1: announced Sunday right now. Championship Week with the Big East

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Speaker 1: Tournament underway at the Garden with a win by Saint

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Speaker 1: John's seventy six sixty three over Butler juls Oriano seventeen points,

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Speaker 1: ten rebounds. It'll be tougher for the Red Storm today

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Speaker 1: against regular season champon Marquette, who's won twenty five games

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Speaker 1: Seaton all season. Its first was Cheene Holloway as coach

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Speaker 1: and getting upset by DePaul sixty six sixty five. DePaul

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Speaker 1: had only won three Big East games, Georgetown won only two.

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Speaker 1: The Hoyas lost by thirty two to Villanova and what

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Speaker 1: you have to think may well have been Patrick Ewing's

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Speaker 1: last game as coach. They lost fifty games over the

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Speaker 1: last two season. But the ACC Tourney Syracuse lost at

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Speaker 1: the Buzzer wait for us, so not surprisingly, there's seventy

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Speaker 1: nine year old coach. Jim Beheim was then asked if

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Speaker 1: it was the end of his coaching career, You're going

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Speaker 1: to retire? This is up to the university. You want

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Speaker 1: to come back. I didn't say that, okay, So what

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Speaker 1: are you saying. You're not saying you're retiring? Should I

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Speaker 1: don't know? So you don't know, okay? I said, this

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Speaker 1: is up to the university, and you're not sure whether

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Speaker 1: you're when? Well, when will how will you make a

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Speaker 1: determination about when you will come back? Talking to the

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Speaker 1: wrong and well. Two hours later, the school announced Beheim

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Speaker 1: was no longer the coach. No quotes from him, rather

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Speaker 1: odd way to end a forty seven year run as

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Speaker 1: Syracuse coach. Will be replaced by his assistant, Adrian Autrey,

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Speaker 1: who played for Talentine High School in the proms. All

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Speaker 1: the New York local pro teams played tonight. Nick started

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Speaker 1: four game West Coast trip at Sacramento. They've won nine

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Speaker 1: to the last ten. That's thro in Milwaukee, the Bucks

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Speaker 1: have won eighteen to the last nineteen. Rangers first game

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Speaker 1: since last Saturday is in Montreal. The Islanders visit Pittsburgh

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Speaker 1: and the Devils go to Washington. John Stash Yet we're

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Speaker 1: Blueberg sports by from coach to coast, from New York

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Speaker 1: to San Francisco, Boston to Washington, DC, nationwide on Sirius Exam,

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Speaker 1: the Bloomberg Business app, and Bloomberg dot Com. This is

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Speaker 1: Bloomberg Daybreak. Good morning. I'm Nathan Hagar. President Biden is

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Speaker 1: getting ready to kick off a months long debate over

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Speaker 1: spending and the debt in Washington, DC when he unveils

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Speaker 1: his budget request for the next fiscal year later today.

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Speaker 1: For more on what to expect, we are joined live

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Speaker 1: this morning by Kevin Whitelaw, who led our congressional coverage

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Speaker 1: for years at Bloomberg News. Kevin, it's great to speak

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Speaker 1: with you again. We've gotten the sort of the trickle

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Speaker 1: of details about what the President's going to propose later today.

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Speaker 1: Now the latest word is big tax hikes on billionaires

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Speaker 1: and capital gains. What more are we hearing? Well, that's right.

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Speaker 1: You know, the plans that we're starting to hear involve

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Speaker 1: a number of different proposals that would that would be

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Speaker 1: very targeted at the wealthiest Americans, so at twenty five

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Speaker 1: percent minimum tax on billionaires, and also a plan to

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Speaker 1: nearly double the capital gameans tax rate to thirty nine

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Speaker 1: point six percent. So you know, this comes on top

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Speaker 1: of another thing that would have targeted income on those

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Speaker 1: making more than four hundred thousand dollars including passive income,

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Speaker 1: and that would have been been used to um to

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Speaker 1: try to bolster the Medicare program. I mean, remember, the

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Speaker 1: thing to keep in mind here is this is really

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Speaker 1: a political statement more than it is an indication of

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Speaker 1: what's actually going to come into place. This is the

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Speaker 1: Democrats and Joe Biden saying this is what we would do.

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Speaker 1: This is how we think the country should be governed

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Speaker 1: if we ran the entire uh you know, uh, you know, legislature,

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Speaker 1: and which they don't. So with Republicans in control of Congress,

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Speaker 1: this isn't going anywhere. Although it is interesting to get

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Speaker 1: this idea that President Biden is sort of sticking with

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Speaker 1: the agenda that he had trouble passing when there was

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Speaker 1: a Democratic majority just a year ago in Congress. Kevin Well,

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Speaker 1: that's true. Although although they never had a sort of

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Speaker 1: fillipp proof majority in the Senate and so you know

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Speaker 1: they were there was, the Republicans always retain the ability

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Speaker 1: to block the most ambitious pieces of legislation. But yeah,

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Speaker 1: the dirty secretive even these budgets is that they tend

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Speaker 1: to be um, you know, a little to h liberal

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Speaker 1: in this case, or if it was a Republican white

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Speaker 1: House conservative, too liberal for it to actually be passed

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Speaker 1: by the moderates and the party. But it does give

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Speaker 1: you at least an indication of sort of where this

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Speaker 1: is going. So it's going to give them something to

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Speaker 1: run on, which is to say, look, we think we

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Speaker 1: need to shore up the country's sort of fiscal status

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Speaker 1: by by making sure that that that the rich pay

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Speaker 1: their fair share and that we bolster these safety net programs.

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Speaker 1: It's also getting the Republicans something to say, hey, look, Democrats,

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Speaker 1: you are like Democrats. They're going to raise taxes. Obviously,

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Speaker 1: these are extremely targeted tax cuts. They would affect a

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Speaker 1: relatively small number of Americans, but the some of the

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Speaker 1: dollar figures involved are obviously substantial. Yeah, you can almost

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Speaker 1: hear the Republican talking points coming out on the other side,

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Speaker 1: the idea of class warfare coming around, heading into a

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Speaker 1: twenty twenty four race. I mean, how does this position

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Speaker 1: thinks not just for the debt fight that's to come

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Speaker 1: over the next few months, but for the political races

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Speaker 1: that are coming next year. Well, you know, the the

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Speaker 1: Democrats are trying to draw a bright line, and you

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Speaker 1: know they they want to portray the Republicans as as

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Speaker 1: being ready to cut entitlement programs and being unwilling to

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Speaker 1: fund them, and that is has worked in many cases

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Speaker 1: for Democrats in in in some of the areas where

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Speaker 1: they're strong, So they see that as a strength point

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Speaker 1: going into the election. Um. Obviously, Republicans who are going

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Speaker 1: to come at it from a from a somewhat different perspective,

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Speaker 1: they're a little divided in some ways because, um, you know,

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Speaker 1: former President Trump has talked about not wanting to cut

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Speaker 1: entitilement programs, even as there have been some discussions among

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Speaker 1: other Republicans about finding ways to try to put them

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Speaker 1: on a more sustainable path more on the side of

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Speaker 1: of of tming trimming some benefits. It's interesting as well, Kevin,

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Speaker 1: isn't it The President is going to be unveiling this

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Speaker 1: budget not at the White House, which I think is

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Speaker 1: pretty customary, but in Philadelphia today it's almost like a

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Speaker 1: campaign event. Yes, well, you know, normally the White you know,

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Speaker 1: normally they the president would unveil at the White House

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Speaker 1: and then quickly go on tour to battleground states. This

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Speaker 1: time he's just starting out in the battleground states, and

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Speaker 1: obviously but still Pennsylvania is one of one of the hardcore,

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Speaker 1: most important states for Democrats. Um, you know, as they

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Speaker 1: as they look towards the next election. This again, it's

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Speaker 1: a reminder of how political a document this is, um

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Speaker 1: as opposed to something that that's that's going to you know,

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Speaker 1: sort of ever see its way into legislation. To our

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Speaker 1: last thirty seconds here, Kevin, are there any further details

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Speaker 1: that you're looking for in this budget proposal, like how

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Speaker 1: it's going to get to balance. I mean, there was

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Speaker 1: some talk that he was going to try to cut

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Speaker 1: three trillion dollars from the deficit over a decade in

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Speaker 1: this document. Yeah, I mean obviously, um, it began just

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Speaker 1: in to see if they come up with any actual,

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Speaker 1: substantial plans that get towards towards that that don't involve

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Speaker 1: just straight budget trickery, which obviously is something that we're

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Speaker 1: always on the lookout for. I think the thing to

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Speaker 1: look for is if there's one or two other little

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Speaker 1: nuggets that get in terms of sort of sort of

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Speaker 1: more sort of social plans. Are the things they want

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Speaker 1: to try to fund, Those might be the kinds of

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Speaker 1: things they want to try to run on and position

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Speaker 1: themselves as they as they head into the election. This

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Speaker 1: is Bloomberg Daybreak Today, your morning brief on the stories

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