WEBVTT - Shutdown Ends as Trump Signs Spending Bill; Trump-Epstein Ties Back in Spotlight

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>Good morning.

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<v Speaker 3>I'm Nathan Hager and I'm Karen Moscow. Here are the

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<v Speaker 3>stories we're following today. Karen, it's over.

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<v Speaker 4>After forty three days, the longest government shut down in

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<v Speaker 4>American history has come to an end.

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<v Speaker 2>On this vote. The a's are two hundred and twenty two.

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<v Speaker 2>The a's are two oh nine. The bill has passed.

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<v Speaker 4>And after that vote in the House of Representatives, President

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<v Speaker 4>Trump signed the bill to reopen the government and put

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<v Speaker 4>federal workers back on the job starting today.

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<v Speaker 5>We're sending a clear message that we will never give

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<v Speaker 5>in to extortion, because that's what it was. They tried

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<v Speaker 5>to extort. The Democrats tried to extort our country.

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<v Speaker 4>The President spoke at an Oval Office signing ceremony heard

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<v Speaker 4>live on Bloomberg Radio. The new funding law does not

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<v Speaker 4>resolve the expiring health insurance subsidies that Democrats wanted to extend.

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<v Speaker 4>Senate Republicans have promised to vote on that next month.

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<v Speaker 4>And even though the government is reopening, getting it back

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<v Speaker 4>to normal could take a while.

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<v Speaker 2>As we hear from Bloomberg's Steric Wallbank.

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<v Speaker 6>We're going to be waiting for a couple of days

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<v Speaker 6>to get federal workers paid. It may take a couple

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<v Speaker 6>of days to get airlines fully back to their normal schedules.

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<v Speaker 6>We're still waiting to see about these economic indicators that

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<v Speaker 6>were delayed or paused during the shutdown. Most of them

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<v Speaker 6>are expected to come, but maybe not all of them,

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<v Speaker 6>but we're waiting to see when those are going to

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<v Speaker 6>get put forward.

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<v Speaker 4>That's Bloomberg's Derek Wallbank. The White House says the October

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<v Speaker 4>jobs and consumer price reports might never be released due

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<v Speaker 4>to the shutdown. The Bureau of Labor Statistics has not

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<v Speaker 4>released a new schedule of data releases. The agency could

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<v Speaker 4>combine two months worth of data to get back on

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<v Speaker 4>track well.

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<v Speaker 3>Nathan asked for airlines getting back on schedule. That Trump

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<v Speaker 3>administration is hoping to bring that in for US smooth

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<v Speaker 3>and landing. The Transportation Department and Federal Aviation Administration are

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<v Speaker 3>freezing of flight reductions at forty major airports at six percent,

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<v Speaker 3>rather than the ten percent previously planned. FAA Administrator Brian

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<v Speaker 3>Bedford says air traffic controller staffing is improving rapidly. Doubt

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<v Speaker 3>The Airlines CEO ed Bashton tells Bloomberg that things should

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<v Speaker 3>keep improving heading into the holidays.

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<v Speaker 4>We know the importance of Christmas and Thanksgiving and the holidays.

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<v Speaker 4>That's our super Bowl, and that's what we rehearse and

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<v Speaker 4>plan all year long.

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<v Speaker 2>We're going to be in really good shape now.

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<v Speaker 3>The CEO, ed Bashton, spoke to Bloomberg from the floor

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<v Speaker 3>of the New York Stock Exchange. Get the full conversation

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<v Speaker 3>on the Bloomberg Podcast channel on YouTube. Airlines have canceled

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<v Speaker 3>almost ten thousand flights since restrictions were put in place

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<v Speaker 3>last week.

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<v Speaker 2>Well, Karen.

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<v Speaker 4>Another major story we're following this morning involves emails released

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<v Speaker 4>by Democrats involving convicted sex offender Jeffrey Epstein. Bloomberg's John

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<v Speaker 4>Tucker joins us with the very latest, John and Nathan.

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<v Speaker 7>In the newly released emails, Jeffrey Epstein repeatedly discussed Donald

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<v Speaker 7>Trump with his co conspirator Gaylaine Maxwell Epstein, writing the

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<v Speaker 7>quote dog that hasn't barked as Trump, adding that one

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<v Speaker 7>of his victims spent quote hours with Trump at Epstein's home.

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<v Speaker 7>California Democratic Congress and Robert Garci is the ranking Democrat

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<v Speaker 7>on the House Oversight Committee which released the files.

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<v Speaker 8>This email from Jeffrey Epstein saying that Donald Trump spent

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<v Speaker 8>hours with one of the victims, or that he knew

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<v Speaker 8>about the girls. I mean, these are things that should

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<v Speaker 8>bother us.

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<v Speaker 7>The White House says that House Democrats selectively leaked to emails,

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<v Speaker 7>creating a quote fake narrative. White House Press Secretary Caroline.

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<v Speaker 9>Levin this administration has done more with respect to transparency

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<v Speaker 9>when it comes to Jeffrey Epstein than any administration ever.

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<v Speaker 7>In another email, Epstein wrote of Trump, of course he

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<v Speaker 7>knew about the girls. Epstein was found dead in his

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<v Speaker 7>jail sale in twenty nineteen. Both Republicans and Democrats in

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<v Speaker 7>Congress have pushed for more information, pitting President Trump against

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<v Speaker 7>members of his own party. Representative Thomas Massey of Kentucky,

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<v Speaker 7>Lauren Bobart of Colorado, Marjorie Taylor Green of Georgia, and

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<v Speaker 7>Nancy Mace of South Carolina have said they will join

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<v Speaker 7>with Democrats to force a vote for the DOJ to

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<v Speaker 7>release all Epstein files. The emails also revealed that former

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<v Speaker 7>US Treasury Secretary Larry Summers wrote to Epstein complaining about

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<v Speaker 7>what he characterized as harsh treatment of an unnamed man

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<v Speaker 7>who hit on a few women. Somers is a paid

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<v Speaker 7>contributor to Bloomberg TV. In the Your Income, John Tucker Bloomberg.

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<v Speaker 3>Radio, All right, John, thank you. We now turn to

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<v Speaker 3>a Bloomberg exclusive. Ukraine's President Vladimir Zelenski says his country

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<v Speaker 3>survival rests on new funding from allies. The Ukrainian leader

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<v Speaker 3>Tom Bloomberg's Oliver Krook, European officials need to overcome their

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<v Speaker 3>divisions on the use of frozen Russian assets.

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<v Speaker 10>They understand that we need their support and if I

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<v Speaker 10>hope God bless, we will get this decision. But they

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<v Speaker 10>will not have this decision. Of course, we together will

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<v Speaker 10>find out. We have to find our torment is the

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<v Speaker 10>question of all. We're surviving, that's why we need it

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<v Speaker 10>very much, and I count on partners.

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<v Speaker 3>And Ukraine's presidents. E went on to say Russia's Vladimir

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<v Speaker 3>Putin had waged a deliberate campaign of intimidation against Europe

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<v Speaker 3>with recent incursions by drones and fighter jets into NATO airspace.

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<v Speaker 4>Another geopolitical development this morning, Karen Chinese President Shi Jinping

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<v Speaker 4>is joining President Trump in skipping this month's G twenty

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<v Speaker 4>summit in South Africa. Instead, China will send Premier Lee Chiang.

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<v Speaker 4>She's decision means the summit will lack the leaders of

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<v Speaker 4>the world's two largest economies, along with fellow member Russia.

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<v Speaker 3>Bloomberg News has learned the European Union is set to

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<v Speaker 3>propose a plan to the US NATHAN that would implement

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<v Speaker 3>the next phase of the trade agreement the two sides

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<v Speaker 3>reached this summer. The deal set of fifteen percent tariff

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<v Speaker 3>on most but not all EU goods entering the US.

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<v Speaker 3>Sources of the plan would focus on areas including tariffs

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<v Speaker 3>and market access standards, digital trade, technical barriers, and cooperation

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<v Speaker 3>on steel and aluminum.

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<v Speaker 4>Well back here in the US, Karen futures have moved

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<v Speaker 4>mostly lower now following another record close for the Dow

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<v Speaker 4>Jones Industrial average. Bloomberg Markets reporter Valerie Titel says the

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<v Speaker 4>end of the government shutdown has boosted sentiment.

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<v Speaker 11>This government shutdown coming to an end has been positive

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<v Speaker 11>for the equity market.

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<v Speaker 2>Take a look at S.

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<v Speaker 11>And P futures this week, we're essentially on track for

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<v Speaker 11>the best week in three months. Gold is up six

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<v Speaker 11>percent in the last five sessions, and a lot of

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<v Speaker 11>this can be tied to the fact that the Treasury

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<v Speaker 11>is going to be resuming their payments, and essentially that

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<v Speaker 11>is releasing liquidity back into the economy that had been

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<v Speaker 11>built up in treasury cash balances over the last forty

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<v Speaker 11>three days.

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<v Speaker 4>That's Bloomberg's Svalary Titel and checking gold. This morning, it's

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<v Speaker 4>up another six tenths of one percent, trading at forty

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<v Speaker 4>two to thirty seven to ten per ounce.

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<v Speaker 3>Shares of Cisco are higher. They are up more than

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<v Speaker 3>six and a half percent this morning. The largest maker

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<v Speaker 3>of machines that run computer networks and the Internet gave

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<v Speaker 3>an upbeat sales forecast. It's showing progress and its effort

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<v Speaker 3>to capture more artificial intelligence spending. Wu Jinho cover Cisco

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<v Speaker 3>for Bloomberg Intelligence.

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<v Speaker 5>They're playing both the enterprise side as well as on

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<v Speaker 5>the AI data center side. They provide the high speed optics,

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<v Speaker 5>but they also provide the chips to help enable scale

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<v Speaker 5>cross and scale out AI networking. But they've partnered with Nvidia.

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<v Speaker 5>They will be using Nvidia ironically and Vidia chips in

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<v Speaker 5>their boxes, so Nvidia has an entry away to the

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<v Speaker 5>enterprise where Cisco excels in.

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<v Speaker 3>And Bloomberg Intelligence is Woujen host as Cisco increased its

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<v Speaker 3>twenty twenty six forecast, exceeding Wall Street estimates. Cisco now

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<v Speaker 3>expects sales of as much as sixty one billion dollars.

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<v Speaker 4>And Karen the earnings continue this morning when the world's

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<v Speaker 4>biggest entertainment company reports ahead of the opening bell. Bloomberg's

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<v Speaker 4>Tom Busby has more and what to expect from Walt Disney.

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<v Speaker 12>A big concern for Disney subscriber growth at its various

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<v Speaker 12>streaming video services like Disney Plus, ESPN Plus and Hulu.

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<v Speaker 12>That's after a lot of customers canceled those services when

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<v Speaker 12>the company briefly suspended Jimmy Kimmel and over the content

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<v Speaker 12>feed dispute it's having right now with YouTube TV, but

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<v Speaker 12>with its cash cal theme Parks expected to deliver another

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<v Speaker 12>quarter of blowout profits. Bloomberg consensus calls for revenue of

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<v Speaker 12>twenty two point eight three billion dollars on adjusted earnings

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<v Speaker 12>per share of a dollar seven.

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<v Speaker 2>Tom Busby Bloomberg Radio.

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<v Speaker 3>All right, Tom, thank you. A new line of Cheetos

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<v Speaker 3>and Dorrito's won't leave anyone's fingers. Orange PepsiCo is introducing

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<v Speaker 3>naked versions of its popular snacks that strip out artificial

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<v Speaker 3>does as part of its push to boost healthier options.

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<v Speaker 3>The offerings, marketed as simply Naked spelled NKD, do not

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<v Speaker 3>have any added colors. PepsiCo says the snacks are designed

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<v Speaker 3>to taste the same as the original, but with a

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<v Speaker 3>novel appearance that the company is betting will interest consumers.

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<v Speaker 3>Time now for a look at some of the other

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<v Speaker 3>stories making news in New York and around the world.

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<v Speaker 3>And for that we're joined by Bloomberg's Michael Barr. Michael,

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<v Speaker 3>good Morning, Good morning, Karen.

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<v Speaker 13>California Governor Gavin Newsom's former chief of staff has been

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<v Speaker 13>indicted in a corruption case. Federal prosecutors say Dana Williamson

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<v Speaker 13>allegedly inspired to divert about two hundred and twenty five

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<v Speaker 13>thousand dollars from a dormant political campaign for an associate's

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<v Speaker 13>personal use. Williamson is also accused of claiming more than

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<v Speaker 13>a million dollars in business deductions for private use. The

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<v Speaker 13>White House is responding after President Trump said that he

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<v Speaker 13>was open to using the revenue he claims the US

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<v Speaker 13>as collective from tariffs to send Americans a two thousand

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<v Speaker 13>dollars check. There are questions as to who would ultimately

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<v Speaker 13>receive these checks, and whether there is enough tariff money

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<v Speaker 13>to do it. White House Press Secretary of Caroline Lovett.

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<v Speaker 9>We are currently exploring all legal options to get that done.

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<v Speaker 9>I don't have a timeline for you or any further details,

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<v Speaker 9>but I can confirm for you that the President made

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<v Speaker 9>it clear he wants to make it happen, and so

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<v Speaker 9>his team of economic advisors are looking into it.

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<v Speaker 13>A federal judge is sent to hear arguments over motions

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<v Speaker 13>brought by former FBI Director James Comey and New York

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<v Speaker 13>Attorney General Letitia James against the US Attorney for the

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<v Speaker 13>Eastern District, Lindsay Halligan, who has indicted both of them.

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<v Speaker 13>They claim that Halligan, President Trump's former personal lawyer, was

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<v Speaker 13>not properly appointed to her position. A Baltimore police officer

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<v Speaker 13>has been indicted. Robert Parks is accused of intentionally driving

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<v Speaker 13>his vehicle at a civilian while on duty. Maryland State

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<v Speaker 13>Attorney Ivan Bates says Parks now faces chargers including attempted murder.

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<v Speaker 8>If found guilty of all charges, Officer Parks faces a

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<v Speaker 8>maximum sentence of sixty five years of incarceration. There is

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<v Speaker 8>no maximum penalty for misconduct.

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<v Speaker 2>In office.

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<v Speaker 13>State Attorney Bates says after Parks struck a man in

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<v Speaker 13>a grassy area, he allegedly tried to hit the man

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<v Speaker 13>two more times with his car. Global News twenty four

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<v Speaker 13>hours a day and whenever you want it with the

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<v Speaker 13>Bloomberg News Now Michael Barr and this is Bloomberg Karen.

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<v Speaker 13>Thanks Michael.

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<v Speaker 3>A time now for our Bloomberg Sports Update, and for

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<v Speaker 3>that we bring in John stash.

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<v Speaker 14>Hour as Darren NBA Stars with Big Games, denvers Na

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<v Speaker 14>Kola Joki. It's fifty point does the Nuggets beat the

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<v Speaker 14>Clippers and in Golden States win at San Antonio. Steph

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<v Speaker 14>Curry went for forty six. Oklahoma City defended NBA champs

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<v Speaker 14>are now twelve and one this year. Thunder up by

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<v Speaker 14>thirty two at halftime in a blowout win over the Lakers.

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<v Speaker 14>Jetson Patriots played tonight in New England. The Patriots have

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<v Speaker 14>won seven in a row. Cy Young Award winners Paul

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<v Speaker 14>Skeins of the Pirates, Trek Scubel the Tigers.

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<v Speaker 2>That's a Bloomberg Sports update. Stay with us.

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<v Speaker 3>More from Bloomberg Day Break coming up after this.

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<v Speaker 1>Coast to Coast on Bloomberg Radio nationwide on Sirius XM

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<v Speaker 1>and around the world on Bloomberg dot Com and the

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<v Speaker 1>Bloomberg Business app. This is Bloomberg Daybreak.

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<v Speaker 4>Good morning, I'm Nathan Hager. After a divided vote in

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<v Speaker 4>the House and a wave of the pen at the

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<v Speaker 4>White House, the federal government is back open for business.

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<v Speaker 4>President Trump has signed the bill to end the longest

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<v Speaker 4>US government shutdown ever at forty three days, but not

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<v Speaker 4>without a dig at Democrats.

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<v Speaker 5>The extremists in the other party insisted on creating the

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<v Speaker 5>longest government shut down in American history, and they did

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<v Speaker 5>it purely for political reason.

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<v Speaker 4>That was President Trump at an Oval Office signing ceremony

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<v Speaker 4>heard live on Bloomberg Radio this morning. Were joined by

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<v Speaker 4>Tina Fordham, founder of Fordham Global Foresight. Tina, it's great

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<v Speaker 4>to have you back with us now that the government

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<v Speaker 4>is back open. What did either side gain by keeping

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<v Speaker 4>it shut down for so long?

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<v Speaker 2>Good morning, Good morning.

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<v Speaker 15>I'd like to give you a really deeply insightful answer

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<v Speaker 15>to that, but I'm really scratching my head on this.

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<v Speaker 15>It feels like a delay that resulted in very little

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<v Speaker 15>political gain for either side. The political calculus for Democrats

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<v Speaker 15>and having held out so long and then reopening an

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<v Speaker 15>exchange for seemingly nothing is a great surprise. But there

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<v Speaker 15>will be collateral damage from the shutdown, and of course,

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<v Speaker 15>of course, you know we're heading straight into the next

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<v Speaker 15>crisis on the back of this.

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<v Speaker 4>That crisis I think you're probably alluding to being the

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<v Speaker 4>expiration of the.

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<v Speaker 2>Health insurance subsidies. Is that what you're getting at? Well, No, but.

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<v Speaker 15>That is of course a huge importance to the American people,

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<v Speaker 15>and it's going to be a major issue for all

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<v Speaker 15>members of Congress. I'm thinking about the expiration on the

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<v Speaker 15>part of Justice releasing the Epstein files. I think that

0:13:31.520 --> 0:13:33.439
<v Speaker 15>is a crisis for the White House.

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<v Speaker 4>Okay, yeah, well let's get into that. Then, as you mentioned,

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<v Speaker 4>we had the discharge petition officially signed. Now, of course

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<v Speaker 4>we've had ahead of that the release of tens of

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<v Speaker 4>thousands of documents, some of which the Democrats have highlighted

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<v Speaker 4>showing potentially President Trump's links with Epstein.

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<v Speaker 2>How do you see this playing out?

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<v Speaker 15>It's not the sort of topic that, as a a

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<v Speaker 15>geopli strategist I would normally offer a view on, but

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<v Speaker 15>I think that it's relevant for three reasons. First of all,

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<v Speaker 15>the end of the shutdown means that these files can

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<v Speaker 15>be released. It's something that the White House has wanted

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<v Speaker 15>to avoid. The collateral damage from the Epstein case is

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<v Speaker 15>popping up everywhere in terms of what it means for

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<v Speaker 15>the White House agenda. Clearly, this is going to dominate

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<v Speaker 15>the news cycle and distract from the White House priorities,

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<v Speaker 15>and coming on the back of last week's off year

0:14:39.440 --> 0:14:44.920
<v Speaker 15>election results where we started to see evidence of some

0:14:45.280 --> 0:14:51.040
<v Speaker 15>pushback on the Trump agenda. In addition to what this

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<v Speaker 15>is doing to challenge the president's approval ratings and support

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<v Speaker 15>for Republicans as we enter this twelve month period head

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<v Speaker 15>of midterms. What really struck me about the petition was

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<v Speaker 15>I think this is the first time that some of

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<v Speaker 15>the Republican Party faithful in Congress refused to comply with

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<v Speaker 15>a direct entreaty from the White House, and that to

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<v Speaker 15>me is significant.

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<v Speaker 4>Does that point to a broader split then between the

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<v Speaker 4>President and his own base at a time where we've

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<v Speaker 4>seen evidence of splits in the Democratic Party as well?

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<v Speaker 2>In terms of how the shutdown was.

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<v Speaker 15>Handled, I think that's where I'm getting to with this.

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<v Speaker 15>I mean, we really didn't have enough data points, if

0:15:44.880 --> 0:15:48.480
<v Speaker 15>you like, before last week's elections to get a sense

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<v Speaker 15>of where the American people were. Of course, we see

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<v Speaker 15>the approval ratings being at historic lows, but let's always

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<v Speaker 15>remember that Democrats as a party haven't benefited to very

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<v Speaker 15>much from that fact. But if Trump starts to lose

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<v Speaker 15>the pretty ironclad support that he's had from his party

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<v Speaker 15>in Congress, and that is coupled with the American people's

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<v Speaker 15>frustration with the cost of living crisis in these other matters,

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<v Speaker 15>then that really signals a challenge ahead in the next

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<v Speaker 15>twelve months for the White House.

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<v Speaker 4>Yeah, it's interesting at a time when, you know, coming

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<v Speaker 4>out of last week's elections where Democrats really seem to

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<v Speaker 4>focus on affordability, if the focus does turn to Jeffrey Epstein,

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<v Speaker 4>what could that mean politically? Is there a risk that

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<v Speaker 4>things could go too far? We have about a minute left.

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<v Speaker 15>In very complex times, I think there's always the risk

0:16:50.120 --> 0:16:54.200
<v Speaker 15>that is story like this, which seems easier to understand

0:16:55.360 --> 0:16:59.400
<v Speaker 15>than the complexities of inflation and trade, for example, just

0:16:59.480 --> 0:17:03.240
<v Speaker 15>takes so it becomes quite a challenge to deal with.

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<v Speaker 15>There's also foreign policy angle, which is surprising the emails

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<v Speaker 15>released talking about you know, tell the Russian foreign Minister

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<v Speaker 15>Sergei Lavrov to talk to me. I can tell you

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<v Speaker 15>how to work with Trump. I mean, those kinds of

0:17:19.000 --> 0:17:24.000
<v Speaker 15>developments could really widen this challenge for the White House

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<v Speaker 15>at a moment when that's the last thing they want

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<v Speaker 15>to have happen.

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