WEBVTT - Senate Pulls All-Nighter on Tax Bill; Trump Takes Aim at Musk

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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.

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<v Speaker 2>Karen, we begin on Capitol Hill, where debate continues on

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<v Speaker 2>President Trump's three point three trillion dollar tax and spending

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<v Speaker 2>cut bill. Senators have been up all night and into

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<v Speaker 2>this morning voting on amendments to the legislation, including clean

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<v Speaker 2>energy and medicaid provisions that could upset fiscal conservatives, but

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<v Speaker 2>Kansas Republican Roger Marshall says he is confident the bill

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<v Speaker 2>will get over the line.

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<v Speaker 1>I sure think we do have the votes.

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<v Speaker 4>I think we cannot let this moment pass.

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<v Speaker 2>To have the largest tax savings in American history, the

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<v Speaker 2>average American family back home is going to save one

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<v Speaker 2>thousand dollars a month, but Democrats like Mark Kelly of

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<v Speaker 2>Arizona are trying to slow the process.

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<v Speaker 5>We'll be here as long as it takes for us

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<v Speaker 5>to show the American people that this is bad policy.

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<v Speaker 5>This is going to kick seventeen million people off of

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<v Speaker 5>their healthcare to give a big giant tax cut to

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<v Speaker 5>the wealthiest Americans.

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<v Speaker 2>Well, right now, eight Republicans are holding out their votes

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<v Speaker 2>on the bill. Two of them, Rand Paul and Tom

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<v Speaker 2>Tillis are solidly against it. Senate majority leader John Thune

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<v Speaker 2>can afford to lose only one more and advance the

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<v Speaker 2>bill back to the House before President Trump's July fourth deadline.

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<v Speaker 3>Meanwhile, Nathan a new analysis of the Senate's tax cut

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<v Speaker 3>bill points to a potential benefit gap in the legislation.

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<v Speaker 3>Economist at Eale University's Budget Lab I found the bill

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<v Speaker 3>would cost the bottom twenty percent of taxpayers an average

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<v Speaker 3>of five hundred and sixty dollars a year, while the

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<v Speaker 3>top twenty percent would see a boost of six fifty

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<v Speaker 3>five dollars. The analysis finds the poorest Americans would bear

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<v Speaker 3>the brunt of cuts to Medicaid in food stamps, while

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<v Speaker 3>higher earners would see the biggest benefit from tax cuts

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<v Speaker 3>and an expanded state and local tax deduction well Karen.

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<v Speaker 2>Treasury Secretary Scott Bessen is optimistic that the tax bill

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<v Speaker 2>will get done in time. He spoke with Bloomberg Shineli Bassic.

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<v Speaker 4>I'm confident that the bill is going to progress as

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<v Speaker 4>is over the next few hours, and it'll be on

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<v Speaker 4>the President's desk to sign on July fourth. So Senate

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<v Speaker 4>will vote pass it over to the House. We've seen

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<v Speaker 4>incredible leadership, and this is what leadership looks like.

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<v Speaker 2>That was Treasury Secretary Scott Besson speaking of Bloomberg Sholly

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<v Speaker 2>Basset yesterday, and for the full conversation head to the

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<v Speaker 2>Bloomberg podcast channel on YouTube.

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<v Speaker 3>Nathan, the war of words between President Trump and Elon

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<v Speaker 3>Musk has exploded into public view once again. I'm Bloomberge

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<v Speaker 3>John Tucker following that story for us John, good morning and.

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<v Speaker 6>Good morning Karen Well. Overnight, President Trump posted on social

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<v Speaker 6>media Elon may get more subsidy than any human being

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<v Speaker 6>in history by far. And without subsidies, Elon would probably

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<v Speaker 6>have to close up shop and head back to South Africa.

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<v Speaker 6>He went on to post, no more rocket launches, satellites

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<v Speaker 6>or electric car production in our country would save a fortune.

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<v Speaker 6>Perhaps we should have Doze take a good hard look

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<v Speaker 6>at this.

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<v Speaker 3>Well.

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<v Speaker 6>This all comes after Musks land the Senate's latest version

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<v Speaker 6>of Trump's multi trillion dollar tax bill, warning that cuts

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<v Speaker 6>to ev and other clean energy credits would be incredibly

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<v Speaker 6>destructive to the country. And not to be outdone, Musk

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<v Speaker 6>is threatening to target nearly every sitting Republican in Congress

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<v Speaker 6>who has signal support for a President Trump's multi trillion

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<v Speaker 6>dollar tax bill. Members of the GOP may be asking

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<v Speaker 6>themselves who they're more afraid of. The President of the

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<v Speaker 6>United States. Are the world's richest man? For now? Investors

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<v Speaker 6>are the ones suffering pre market the shares of Tesla

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<v Speaker 6>they are most active right now, down four and a

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<v Speaker 6>half percent. You know you, Yorkom John Tucker, Bloomberg Radio.

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<v Speaker 2>All right, John, thanks for that. Now the latest on

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<v Speaker 2>the trade front. Bloomberg News has learned that the European

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<v Speaker 2>Union may be willing to accept the trade arrangement with

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<v Speaker 2>the US ahead of President Trump's deadline. Let's go to

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<v Speaker 2>London get the latest of Bloomberg's un Potts. Good morning, Ewan, Nathan,

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<v Speaker 2>and Karen.

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<v Speaker 7>It's the world's most important bilateral trading relationship. And now

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<v Speaker 7>Bloomberg has learned that the European Union is willing to

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<v Speaker 7>accept a arrangement with the US that includes Donald Trump's

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<v Speaker 7>universal ten percent tariff on many of his exports, but

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<v Speaker 7>it does want low rates on key sectors including pharmaceuticals, alcohol, semiconductors,

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<v Speaker 7>and commercial aircraft, which told the European Commission views the

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<v Speaker 7>deal as slightly favoring the US, but it's still something

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<v Speaker 7>that it could agree to without a deal. Is just

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<v Speaker 7>eight days until all European Union exports are set to

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<v Speaker 7>be hit with a tariff of fifty percent in London.

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<v Speaker 7>I'm you in pots Bloomberg Radio.

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<v Speaker 8>Ew and thanks.

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<v Speaker 3>Meanwhile, President Trump is threatening to ramp up tariffs on Japan.

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<v Speaker 3>I mean again more with Bloomberg Trades are Brendan Murray.

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<v Speaker 9>He's kind of.

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<v Speaker 10>Calling Japan's bluff here and saying, you won't take our

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<v Speaker 10>rice exports. Therefore, you're just going to have to accept

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<v Speaker 10>the reciprocal tariff that I'm going to impose on you. Now,

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<v Speaker 10>whether that's going to motivate Japan to get a better

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<v Speaker 10>offer on the table between now and July ninth is

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<v Speaker 10>a whole nother question, and people would doubt that Japan

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<v Speaker 10>is going to cave on that. The big issue for

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<v Speaker 10>Japan is getting around those twenty five percent auto tariffs.

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<v Speaker 10>Japan is obviously a big exporter to the US of automobiles,

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<v Speaker 10>and something like eighty percent of the US's trade deficit

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<v Speaker 10>with Japan is tied to automobiles. So Trump really wants

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<v Speaker 10>to bring that down, and Japan is not willing to

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<v Speaker 10>give that up very easily.

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<v Speaker 3>Bloomberry's Brandon Murray says talks between the US and Japan

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<v Speaker 3>are expected to continue despite the president's latest threat.

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<v Speaker 2>Karen Let's turn to markets now. The S and P

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<v Speaker 2>five hundred is coming off its best quarter since twenty

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<v Speaker 2>twenty three. As we head into the second half of

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<v Speaker 2>this year, the index is trading at an all time high,

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<v Speaker 2>soaring twenty five percent from its early April low. Tally

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<v Speaker 2>Lejay is chief market strategistic the Wealth Consulting Grip.

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<v Speaker 11>I know it sounds silly, and I'm a wild eye optimist,

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<v Speaker 11>but by the dips has worked since the inception of

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<v Speaker 11>the S and P five hundred, folks, and we know

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<v Speaker 11>that because the chart goes from the lower left to

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<v Speaker 11>the upright across time. It depends on your holding period,

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<v Speaker 11>and our horizon tends to be pretty long. So I

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<v Speaker 11>think it's always a good time, even at all time

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<v Speaker 11>highs like this, to put new money to work in stocks.

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<v Speaker 2>Chally leje with the Wealth Consulting Group. Meantime, this has

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<v Speaker 2>been the worst half of a year for the dollar

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<v Speaker 2>since nineteen seventy three. The US currency is down ten

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<v Speaker 2>point eight percent so far this year.

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<v Speaker 3>Nathan FN Chair J Powell and other top central bankers

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<v Speaker 3>are set to discuss monetary policy at the European Central

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<v Speaker 3>Bank's annual retreat in Portugal, and we get a preview

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<v Speaker 3>with Bloomberg's Michael McKee.

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<v Speaker 8>It's an all star central banker panel that may shed

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<v Speaker 8>some light on the path for global interest rates given

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<v Speaker 8>the trumpe tariff chaos. Federal Reserve Chair J. Powell is

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<v Speaker 8>probably the main attraction, but is there much new he

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<v Speaker 8>can say until the administration makes its policies clear. In Japan,

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<v Speaker 8>Kajo Yueeda is trying to navigate a tricky corridor, raising

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<v Speaker 8>interest rates while trying to keep the economy on course.

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<v Speaker 8>Bank of England Governor Andrew Bailey is dealing with stubborn

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<v Speaker 8>inflation and signs of weakening growth, and ECB President Christine

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<v Speaker 8>Legard is facing headwinds from US policies and European defense

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<v Speaker 8>spending needs. Odds are we'll learn more about all of

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<v Speaker 8>their problems than what the solutions may be. Michael McKee,

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<v Speaker 8>Bloomberg Radio.

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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 9>A jury returns to deliberate for a second day today

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<v Speaker 9>at the sex trafficking trial of music mogul Sean Diddy Combs.

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<v Speaker 9>Yesterday got off to a rugged start and all were

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<v Speaker 9>into deliberations. The four persons sent a note saying they

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<v Speaker 9>were concerned one of the jurors could not follow the

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<v Speaker 9>judge's instructions. Eventually, jurors deliberated over five hours on Monday.

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<v Speaker 9>They are deciding where the prosecutors have proven racketeering, conspiracy

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<v Speaker 9>and sex trafficking charges. Former prosecutor Bernardo Vielono.

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<v Speaker 3>The jury is accident. If an individual acts for a

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<v Speaker 3>control substance and the person hands.

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<v Speaker 8>It over, is it distribution. I would be concerned if

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<v Speaker 8>I was Sean Colmes, because you don't get to that

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<v Speaker 8>predicate act unless you have already found that there's a

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<v Speaker 8>racketeering conspiracy.

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<v Speaker 9>The defense says this was all part of the swingers'

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<v Speaker 9>lifestyle and that he committed no crimes. The largest city

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<v Speaker 9>workers union in Philadelphia is now on strike, about nine

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<v Speaker 9>thousand workers represented by District Council thirty three walked off

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<v Speaker 9>the job at midnight after negotiators failed to reach a

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<v Speaker 9>new deal with the city. The union has been asking

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<v Speaker 9>for eight percent raises each year for four years. Union

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<v Speaker 9>head Greg Boulware says the city's offer of a seven

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<v Speaker 9>percent raise spread out over three years isn't enough. What

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<v Speaker 9>inflation is up and the cost of living is up.

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<v Speaker 9>Two percent raises and three percent raises don't change the

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<v Speaker 9>narrative for our people. Things like trash service have been interrupted.

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<v Speaker 9>Look for a red hike. The New York City Rent

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<v Speaker 9>Guidelines Board last night to prove the three percent price

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<v Speaker 9>increase for one year leases and four point five percent

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<v Speaker 9>for two year leases, affecting roughly one million rent stabilized apartments.

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<v Speaker 9>The increases are expected to begin on October first. Global

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<v Speaker 9>News twenty four hours a day and whenever you want

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<v Speaker 9>it with the Bloomberg News. Now, I'm Michael Barr, and

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<v Speaker 9>this is Bloomberg Karen.

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<v Speaker 3>All right, Michael Barr, thank you. Time down to the

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<v Speaker 3>Bloomberg Sports Update, brought to you by Flushing Bank. Here's

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<v Speaker 3>John Stanshower.

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<v Speaker 12>John to morning, Good morning to down Yankees in Toronto.

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<v Speaker 12>First to four before they come back to New York

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<v Speaker 12>to play the Mets this weekend. Jazz Chisholm another home

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<v Speaker 12>run is fourth and five games. Yanks had two to nothing,

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<v Speaker 12>later three to one. It came apart sixth in in blue.

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<v Speaker 12>Jays put the four runs on three Yankee pitchers and

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<v Speaker 12>Anthony Vopi throwing air was constantly. Toronto won five to four.

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<v Speaker 12>Yanks in June had a losing month. Their managers Aaron Boone, a.

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<v Speaker 13>Really tough week. You know that that lent itself to

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<v Speaker 13>this record. So you know, we know we got to

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<v Speaker 13>be a little bit better, and you know feel like overall,

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<v Speaker 13>you know, we just got to find a way to

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<v Speaker 13>finish some of these games.

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<v Speaker 12>Tampa Bay loss of the Yanks remain game and a

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<v Speaker 12>half ahead. Phillies won four nothing behind Zach Wheeler, who

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<v Speaker 12>in five starts in June allowed only two in runs

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<v Speaker 12>in the fields now two games ahead of the Mets,

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<v Speaker 12>who are at Cityfield tonight to play in Milwaukee. The

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<v Speaker 12>Mets have lost thirteen or the last sixteen games. The

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<v Speaker 12>Knick still don't have a coach, but they've added a player.

0:10:30.880 --> 0:10:34.360
<v Speaker 12>Veteran guard Jordan Clarkson got bought out in Utah, so

0:10:34.440 --> 0:10:37.720
<v Speaker 12>he first needs to clear free agent waivers, but Clarkson

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<v Speaker 12>expected to join the Knicks and helped their bench, which

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<v Speaker 12>was thin for most of last season. As to the

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<v Speaker 12>new coach, Mike Brown, the first to have a second interview,

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<v Speaker 12>Brown two years ago Coach of the Year in Sacramento,

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<v Speaker 12>the Kings fired him during this past season. An NFL

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<v Speaker 12>trade of three time All Pro defensive backs Mitka Fitzpatrick

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<v Speaker 12>goes back to Miami where he began his career. Jalen

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<v Speaker 12>Ramsey goes to Pittsburgh tight end Johnny the Smith. Day

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<v Speaker 12>two at Wimbledon will have early starts for Americans Tommy

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<v Speaker 12>Paul and Jess Pagoula. Topsy Onick Center plays today, so

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<v Speaker 12>does Novak Djokovic and Coke Go God John Stashedward Bloomberg's.

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<v Speaker 1>Boots Coast to Coast on Bloomberg Radio nationwide on Serious

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

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

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<v Speaker 2>Good morning, I'm Nathan Hager. The Senate has been pulling

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<v Speaker 2>an all nighter of amendment votes to President Donald Trump's

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<v Speaker 2>big tax and spending cut bill. It continues this morning.

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<v Speaker 2>Right now eight Republicans are holding out support for the legislation,

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<v Speaker 2>but White House Economic Advisor Kevin Hassett is keeping the

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<v Speaker 2>pressure on.

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<v Speaker 11>I would counsel people very much against quoting against the bill,

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<v Speaker 11>and I don't expect that there are going to be

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<v Speaker 11>many people who do that because the bill makes so

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<v Speaker 11>much sense.

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<v Speaker 2>That was a National Economic Council director Kevin Hassett. Joining

0:11:53.200 --> 0:11:57.120
<v Speaker 2>us this morning is Terry Haines, the founder of Pangaea Policy. Terry,

0:11:57.120 --> 0:11:59.480
<v Speaker 2>good morning. The White House is sounding confident this bill

0:11:59.600 --> 0:12:02.160
<v Speaker 2>is going to get done. How do you see things?

0:12:02.200 --> 0:12:06.160
<v Speaker 14>Good morning, Good morning, Nathan. This is the time where

0:12:05.600 --> 0:12:09.079
<v Speaker 14>you project the result you want. So the White House

0:12:09.160 --> 0:12:14.319
<v Speaker 14>is projecting confidence. The Democrats are projecting scorn and ugliness.

0:12:15.520 --> 0:12:18.280
<v Speaker 14>The eight Democrat or excuse me, the eight Republican senators

0:12:18.280 --> 0:12:24.760
<v Speaker 14>that want things or projecting uncertainty. So so people want things,

0:12:24.800 --> 0:12:27.720
<v Speaker 14>and we're about to the point. My view is ultimately

0:12:28.520 --> 0:12:31.679
<v Speaker 14>this thing passes. My bogie for three months has been

0:12:31.800 --> 0:12:35.080
<v Speaker 14>that it's going to happen on or around July fourth.

0:12:35.120 --> 0:12:38.000
<v Speaker 14>So here we are, and you know, but there's going

0:12:38.040 --> 0:12:39.320
<v Speaker 14>to be a lot of deals done here in the

0:12:39.320 --> 0:12:41.280
<v Speaker 14>next few hours and a lot of votes to happen

0:12:41.320 --> 0:12:42.200
<v Speaker 14>in the next few hours.

0:12:42.480 --> 0:12:44.719
<v Speaker 2>How do you see those deals shaking out. There's been

0:12:44.800 --> 0:12:48.240
<v Speaker 2>a lot of focus, particularly on the clean energy tax credits,

0:12:48.320 --> 0:12:51.199
<v Speaker 2>the cuts to Medicaid. How could this bill reshaped? Do

0:12:51.240 --> 0:12:53.920
<v Speaker 2>you see significant reshaping to the legislation?

0:12:54.280 --> 0:12:57.880
<v Speaker 14>Well, I don't see significant. I would say not significant.

0:12:57.920 --> 0:12:59.760
<v Speaker 14>The reason why is because the core is to the

0:12:59.800 --> 0:13:02.800
<v Speaker 14>core or this thing or tax provisions and manufacturing provisions.

0:13:03.080 --> 0:13:06.160
<v Speaker 14>What we're talking about here is are important provisions, but

0:13:06.200 --> 0:13:09.480
<v Speaker 14>there they're ancillary to the core of the bill. But

0:13:09.960 --> 0:13:14.760
<v Speaker 14>I see fundamentally accommodation. I see, uh, you know, things

0:13:14.840 --> 0:13:16.880
<v Speaker 14>that they've probably gone about as far as they're going

0:13:16.960 --> 0:13:19.520
<v Speaker 14>to go on Medicaid and probably even walk back. And

0:13:19.559 --> 0:13:23.120
<v Speaker 14>this is what we're talking before Senator Scott's amendment about

0:13:23.120 --> 0:13:24.960
<v Speaker 14>the federal match happens.

0:13:25.480 --> 0:13:25.560
<v Speaker 10>Uh.

0:13:25.800 --> 0:13:30.600
<v Speaker 14>But and Senator Murkowski, Senator Collins and others, uh want

0:13:30.720 --> 0:13:34.120
<v Speaker 14>some things. So I think the bill ultimately moderates some.

0:13:34.240 --> 0:13:36.400
<v Speaker 2>We've talked about the pressure that the White House is

0:13:36.480 --> 0:13:40.120
<v Speaker 2>putting to bear. There's a new analysis from Yale's Budget

0:13:40.200 --> 0:13:44.520
<v Speaker 2>Lab that shows a pretty disproportionate benefit for upper earners

0:13:44.559 --> 0:13:47.600
<v Speaker 2>compared to lower earners from this legislation. Is there a

0:13:47.640 --> 0:13:50.600
<v Speaker 2>potential political downside for Republicans to passing this?

0:13:51.679 --> 0:13:55.000
<v Speaker 14>Not particularly you know, the the the the Yale folks

0:13:55.000 --> 0:13:57.720
<v Speaker 14>are a lot of things, but they're they're they're they're

0:13:57.720 --> 0:14:03.000
<v Speaker 14>pretty part of center orientation. Certainly, the polling is negative

0:14:03.040 --> 0:14:08.040
<v Speaker 14>towards Republicans right now. But what Republicans are focusing on is,

0:14:08.559 --> 0:14:10.439
<v Speaker 14>you know, they can get the kind of the tack

0:14:10.520 --> 0:14:15.400
<v Speaker 14>the fundamental tax and manufacturing policy right then they wager

0:14:15.440 --> 0:14:19.320
<v Speaker 14>the economic effects result in result from a positive result

0:14:19.360 --> 0:14:22.400
<v Speaker 14>into a positive polling balance into twenty twenty six and

0:14:22.400 --> 0:14:25.920
<v Speaker 14>into the midterms, and you know, and whatever else you

0:14:25.920 --> 0:14:28.680
<v Speaker 14>have to say about what the Republicans are doing, one

0:14:28.720 --> 0:14:31.440
<v Speaker 14>thing they are counting on is the kind of the

0:14:31.480 --> 0:14:35.360
<v Speaker 14>relative scramble that the Democrats are in right now.

0:14:35.480 --> 0:14:38.920
<v Speaker 2>So you buy the White House analysis that the CBO

0:14:39.040 --> 0:14:42.160
<v Speaker 2>scoring on this does in factor in the economic benefit

0:14:42.600 --> 0:14:44.720
<v Speaker 2>they're talking about something like a three percent boost to

0:14:44.800 --> 0:14:46.280
<v Speaker 2>GDP from this legislation.

0:14:46.680 --> 0:14:50.360
<v Speaker 14>Well, you know, going back to certainly going back to

0:14:50.640 --> 0:14:53.440
<v Speaker 14>President Obama in twenty twelve, I remember this very clearly,

0:14:53.480 --> 0:14:57.080
<v Speaker 14>but I think it goes back much farther. There's always

0:14:57.120 --> 0:15:00.280
<v Speaker 14>been complaint from any occupant of the White house at

0:15:00.720 --> 0:15:05.080
<v Speaker 14>the CBO scoring is artificial, does not take growth into account,

0:15:05.640 --> 0:15:09.280
<v Speaker 14>as Secretary best And points out, doesn't take tariff revenues

0:15:09.320 --> 0:15:12.480
<v Speaker 14>into account. And you know, when you have a world

0:15:12.560 --> 0:15:16.400
<v Speaker 14>where the as the Wall Street Journal points out, where

0:15:16.560 --> 0:15:21.840
<v Speaker 14>the CBO score on extending salt turns out to be

0:15:22.640 --> 0:15:25.760
<v Speaker 14>turns out to lower the deficit, you know, you've got

0:15:25.800 --> 0:15:28.400
<v Speaker 14>a pretty You've got a fairly wacky and artificial system.

0:15:28.440 --> 0:15:29.920
<v Speaker 14>Whatever else you have to say about.

0:15:29.680 --> 0:15:32.840
<v Speaker 2>It, Okay, just quickly yay nay on whether this bill

0:15:32.880 --> 0:15:34.320
<v Speaker 2>passes out of the Senate today.

0:15:36.480 --> 0:15:39.160
<v Speaker 14>As we speak again, this.

0:15:39.240 --> 0:15:42.800
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