WEBVTT - Trump Backs NATO Action, Kimmel's Tearful Return, Super Typhoon Hits HK

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

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<v Speaker 2>This is the BlueBag Day Baker at podcast. Good morning,

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<v Speaker 2>It's Wednesday, the twenty fourth of September. I'm Caroline Hepgar

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<v Speaker 2>in London. Coming up today. President Trump says that NATO

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<v Speaker 2>allies should shoot down Russian aircraft that enter their territory

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<v Speaker 2>as he backs Ukraine to win the war. Jimmy Kimmel

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<v Speaker 2>chokes up as he says it was never his intention

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<v Speaker 2>to make light of the murder of Charlie Kirk before

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<v Speaker 2>calling efforts to take his program off the air on

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<v Speaker 2>American plas the trillion dollar race, European money managers moved

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<v Speaker 2>to consolidate as they try to head off the growing

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<v Speaker 2>threat from Wall Street rivals. Let's start with the roundup

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<v Speaker 2>of our top stories. President Donald Trump is sounding a

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<v Speaker 2>new note on Ukraine's chances of winning its war against

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<v Speaker 2>Russia and saying that NATO itself sho take a tougher line.

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<v Speaker 2>He says members of the Alliance should take down Russian

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<v Speaker 2>planes that breach their airspace. That was after a series

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<v Speaker 2>of jet and drone incursions this month on NATO's eastern

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<v Speaker 2>flank which alarmed allies. Here is the exchange with reporters

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<v Speaker 2>when President Trump was directly pressed on his stance, Mister Prednay, do.

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<v Speaker 3>You think that NATO countries should shoot down Russian aircraft

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<v Speaker 3>if they enter their airspace?

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<v Speaker 2>Donald Trump was speaking alongside Ukraine's Vladim Zelinsky on the

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<v Speaker 2>sidelines of the UN General Assembly in New York. In

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<v Speaker 2>a subsequent social media post, Trump said he believed that

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<v Speaker 2>with EU backing, Ukraine was positioned to reclaim all the

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<v Speaker 2>territory taken by Russia since its invasion in twenty twenty two.

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<v Speaker 2>Not only to fight back, President Trump wants NATO to

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<v Speaker 2>step up and also put more pressure on Russia. Though

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<v Speaker 2>Finnish President Alexander Stubb has been speaking to Bloomberg, all.

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<v Speaker 4>The conversations that I've had with my American friends and

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<v Speaker 4>also with President Trump lead me to believe that there's

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<v Speaker 4>a very strong commitment to nature and the alliance. Remember

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<v Speaker 4>that a year ago, if someone would have told me

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<v Speaker 4>in the summer, at the seventy fifth Anniversary of Nature

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<v Speaker 4>that we will hike up our defense expenditure from JUO

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<v Speaker 4>to five percent next summer, I would have said, you'd

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<v Speaker 4>probably going to need to go and see a doctor.

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<v Speaker 2>Finished President Alexander stood there speaking to Bloomberg's Tyler Kendall.

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<v Speaker 2>The US President meanwhile delivered his first UN speech of

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<v Speaker 2>his second term, in which he severely criticized the UN

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<v Speaker 2>organization and repeated his call for stronger borders.

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<v Speaker 1>Now.

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<v Speaker 2>The US's late night host Jimmy Kimmel became notably emotional

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<v Speaker 2>as his show returned, and he railed against the threat

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<v Speaker 2>of censorship. Disney suspended Kimmel's show last week following controversial

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<v Speaker 2>remarks that the comedian made about the assassination of Republican

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<v Speaker 2>activists Charlie Kirk. At the start of his ABC show,

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<v Speaker 2>the comedian thanked both political supporters and opponents who had

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<v Speaker 2>backed his freedom to share his views on air, before

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<v Speaker 2>then offering this conciliatory message.

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<v Speaker 5>You understand that it was never my intention to make

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<v Speaker 5>light of the murder of a young man.

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<v Speaker 3>I don't.

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<v Speaker 5>I don't think there's anything funny about it. I posted

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<v Speaker 5>a message on Instagram of the daves killed, sending love

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<v Speaker 5>to his family and asking him for compassion, and I

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<v Speaker 5>meant it and I still do. Nor was in my

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<v Speaker 5>intention to blame any specific group for the actions of

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<v Speaker 5>what it was obviously a deeply disturbed individual.

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<v Speaker 2>Kimmel went on to call the push to take his

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<v Speaker 2>show off air on American Disney reinstated kim OLL's program

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<v Speaker 2>after reaching an agreement with the late night host about

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<v Speaker 2>what he would say on air, following a public backlash

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<v Speaker 2>out the decision to suspend him. Now, in a social

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<v Speaker 2>media post, President Trump floated the prospect of unspecified future

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<v Speaker 2>legal challenges against the company's decision to bring back the show,

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<v Speaker 2>calling him an arm of the Democratic Party. Now. Another news,

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<v Speaker 2>violent wind and torrential rain super typhoon Ragasa has been

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<v Speaker 2>pounding Hong Kong and it is expected to hit China's

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<v Speaker 2>Guangdong province later today. Ragasa has killed at least fourteen

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<v Speaker 2>people in Taiwan and six in the Philippines, and is

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<v Speaker 2>the worst cyclone worldwide this year. The storm has led

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<v Speaker 2>to thousands of flights being canceled, school classes, train services,

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<v Speaker 2>and business activities being suspended across major cities in southern China.

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<v Speaker 2>Here in the UK, the government is looking at making

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<v Speaker 2>it easier for highly skilled workers to come to Britain

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<v Speaker 2>to take advantage of America's visa changes. The Chance of

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<v Speaker 2>Rachel Reeves told staff at revolutes new global headquarters that

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<v Speaker 2>the UK government is moving quickly to try to grab talent.

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<v Speaker 2>Here is Bloomberg's James Walcock with more.

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<v Speaker 6>The UK government wants your tech professionals, bankers and lawyers,

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<v Speaker 6>but if you're coming illegally, it wants to discourage you

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<v Speaker 6>from coming. The mixed messaging is created by two competing priorities.

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<v Speaker 6>The UK government wants economic growth, but it's also terrified

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<v Speaker 6>of being seen not to be in control of migration

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<v Speaker 6>in London James Wacock, Bloomberg Radio.

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<v Speaker 2>Faircha Jo and Powell says that there is no risk

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<v Speaker 2>free path for the US economy. The Central Bank chair

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<v Speaker 2>pointed to high inflation and a fragile jobs market as

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<v Speaker 2>pain on both sides of the monetary policy problem. Powell

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<v Speaker 2>says that economists are also still watching for a tariff

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<v Speaker 2>impact your term, risks.

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<v Speaker 7>To inflation are tilted to the upside and risks to

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<v Speaker 7>employment are tilted to the downside, a challenging situation. Two

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<v Speaker 7>sided risks mean that there is no risk free path.

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<v Speaker 2>Powell's comments are in stark contrast to President Trump's new

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<v Speaker 2>appointee to the FED Board, Stephen Myron. Myron says that

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<v Speaker 2>the threat to the labor market is the main priority,

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<v Speaker 2>and is voting for steep cuts to the interest rate.

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<v Speaker 2>The open divide the US Central Bank is driving big

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<v Speaker 2>swings in trading in options markets. Traders now expect only

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<v Speaker 2>one more twenty five basis point cut this year, and

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<v Speaker 2>the so called neutral raids they see as higher than

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<v Speaker 2>current market expectations at just below three percent. Open AI

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<v Speaker 2>is planning to invest roughly four hundred billion dollars to

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<v Speaker 2>develop five new US data centers. The project, in partnership

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<v Speaker 2>with Oracle and SoftBank, is the biggest push to fulfill

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<v Speaker 2>a pledge to spend a half trillion dollars on AI

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<v Speaker 2>infrastructure in America. J Jacobs, head of Equity ETFs at

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<v Speaker 2>black Rock, expects even more money to flow in to

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<v Speaker 2>the sector.

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<v Speaker 8>Investor enthusiasm is only growing. If you look at one

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<v Speaker 8>of our ETFs, BAI. It's an actively managed AIETF. It's

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<v Speaker 8>brought in over five billion dollars this year and is

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<v Speaker 8>now the largest AIETF in the United States, and a

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<v Speaker 8>lot of the exposure that is providing to investors is

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<v Speaker 8>around that digital infrastructure layer. The hardware producers in the

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<v Speaker 8>semiconductor space, the digital infrastructure owners, some of the data

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<v Speaker 8>owners that are becoming really valuable in this explosion of

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<v Speaker 8>AI models, and so there's a ton of investor enthusiasm,

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<v Speaker 8>and I think there's a lot of expectations that revenues

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<v Speaker 8>will match the expenditures, if not exceed them, in the

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<v Speaker 8>next several years.

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<v Speaker 2>Now Black Clox J Jacobs there speaking to Bloomberg. According

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<v Speaker 2>to the firms, the new locations will be spread across Texas,

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<v Speaker 2>New Mexico, and Ohio and eventually have a capacity of

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<v Speaker 2>seven gigawatts, which is as much as some cities. Open

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<v Speaker 2>AI says that the sites will also create tens of

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<v Speaker 2>thousands of additional jobs across the US. So those are

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<v Speaker 2>our top stories for you this morning. Looking at the

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<v Speaker 2>market stop future for the European market, open are quite weak,

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<v Speaker 2>down four tenths of one percent, but we're keeping an

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<v Speaker 2>eye on defense stocks, which have seen valleys in Asia

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<v Speaker 2>after President Trump's un address yesterday. US STOP futures are

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<v Speaker 2>in the green. Looking at the MSCI Asia Pacific Index

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<v Speaker 2>that is slightly softer. The dollar is stronger a tenth

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<v Speaker 2>of one percent. Oil prices are also higher this morning,

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<v Speaker 2>again on the rhetoric around Russia from President Trump, treasuries

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<v Speaker 2>holding their gains after your own power warned about those

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<v Speaker 2>risks in the labor market and inflation persisting in the US.

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<v Speaker 2>So those are the markets. In a moment, we are

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<v Speaker 2>going to bring you a bit more then on the

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<v Speaker 2>change in tone from President Trump and the United States

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<v Speaker 2>on Russia, and also how Europe's fragmented asset managers are

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<v Speaker 2>starting to consolidate in the face of big US players.

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<v Speaker 2>So we'll get onto that in a moment. But something

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<v Speaker 2>else has caught my eye today. How early do you

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<v Speaker 2>get up? Do you write lists, you take a walk?

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<v Speaker 2>I've been thinking about these habits after reading Bloomberg's CEO

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<v Speaker 2>diet Kate Krader, who actually sits only a few desks

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<v Speaker 2>away from me. She's been talking to a dozen also

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<v Speaker 2>leaders and founders about how they use their time in

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<v Speaker 2>the office and outside, and delighted to hear lots of

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<v Speaker 2>them get up really early, but many of them also

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<v Speaker 2>go to bed and get up at exactly the same time.

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<v Speaker 2>And I just thought it was really interesting conversation about productivity.

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<v Speaker 2>Glad to hear that actually a lot of these CEOs

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<v Speaker 2>do balance, you know, they talk about balance even though

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<v Speaker 2>they're high achievers. They balance their needs across the day.

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<v Speaker 2>Yakob Arab Anderson, who's the CEO of Carlsberg, calls it

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<v Speaker 2>FSN fitness, sleep, nutrition, and lots of others. I mean

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<v Speaker 2>one new CEO, Rose Van Geven at the investment company

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<v Speaker 2>Findlay Park Partners, says that she's completely ditched social media

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<v Speaker 2>platforms because it takes up so much of her time.

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<v Speaker 2>But look, I thought it was a very interesting list

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<v Speaker 2>on Yeah, I guess how to be one of those

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<v Speaker 2>top how to get maybe to be CEO with the

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<v Speaker 2>habits daily habits. It's in Bloomberg's CEO Diet, and I'm

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<v Speaker 2>going to put a link to it in our show

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<v Speaker 2>notes for you to have a read and maybe get

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<v Speaker 2>inspired today. Now, President Donald Trump says that NATO countries

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<v Speaker 2>should shoot down Russian aircraft that violate their airspace in

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<v Speaker 2>and addressed to the UN in which the US President

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<v Speaker 2>was more optimistic about Ukraine's ability to regain all of

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<v Speaker 2>its territory. Joining me now to discuss is Bloomberg's Brussels

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<v Speaker 2>Bureau chief Suzanne Lynch. Good morning, Suzanne. How significant a

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<v Speaker 2>shift is this by the US on support for Ukraine

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<v Speaker 2>against Russia's putin.

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<v Speaker 3>I mean, I think there was a lot of relief

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<v Speaker 3>in New York among European allies about Donald Trump's comments

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<v Speaker 3>that really came out during the day. He struck a

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<v Speaker 3>very combative tone during his own address to the UN Assembly.

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<v Speaker 3>M It was an extremely negative speech where he sailed

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<v Speaker 3>allies over issues like migration and over energy. He said,

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<v Speaker 3>you know your countries are going to hell. And this

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<v Speaker 3>was the tone of his speech to the UN. But

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<v Speaker 3>then later when he started having those bilateral meetings with leaders,

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<v Speaker 3>when we heard from the President at those press points,

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<v Speaker 3>and we definitely saw a different tone in terms of

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<v Speaker 3>the specifics of the US policy visa v Russia and Ukraine,

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<v Speaker 3>and most importantly there as he said he did say

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<v Speaker 3>that he believed that NATO nations should shoot down Russian

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<v Speaker 3>aircrafts that violated their airspace. Earlier we'd heard and Marco

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<v Speaker 3>Rubio kind of moving away from that one slightly. This

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<v Speaker 3>followed comments by the Polish Prime Minister Donald Tusk earlier

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<v Speaker 3>in the week when he talked about shooting down Russian

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<v Speaker 3>aircraft that came into airspace. But a very significant shift

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<v Speaker 3>and tone there by Donald.

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<v Speaker 2>Trump Russia seems to have been testing you also and

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<v Speaker 2>NATO with these airspace incursions that we've been talking about

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<v Speaker 2>throughout this week, sasan would the aircraft be shot down

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<v Speaker 2>in future? And also what is now the US position

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<v Speaker 2>on that?

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<v Speaker 3>Yeah, it's an interesting one. Yesterday the NATO had a

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<v Speaker 3>meeting of the North Atlantic Council, which is their main

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<v Speaker 3>decision body here in Brussels. It had been called by

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<v Speaker 3>Estonia because of the incursions into its airspace. But while

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<v Speaker 3>that was happening, if you like, we were getting confirmation

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<v Speaker 3>from Denmark that Copenhagen Airport had been closed for several

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<v Speaker 3>hours because of drone incursions there. So Mark Ruta, the

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<v Speaker 3>NATO Secretary General, was asked a specific question, I mean,

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<v Speaker 3>what is the position vs. V and NATO and these

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<v Speaker 3>drone incursions? Now, he was very careful in his wording.

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<v Speaker 3>He said, you know, if this is intentional or not?

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<v Speaker 3>He said a few times he said NATO is prepared

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<v Speaker 3>to defend every inch of its territory.

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<v Speaker 4>Now.

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<v Speaker 3>He was asked as well about those comments O more

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<v Speaker 3>belligerent to be like comments by President or Prime Minister

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<v Speaker 3>Donald Tusker in the week, and he was keen to

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<v Speaker 3>kind of say there was no daylight between the two saying, Look,

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<v Speaker 3>Tusk is saying what I'm saying, if necessary, and NATO

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<v Speaker 3>will act, and you know we're not at that point,

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<v Speaker 3>but it is ready and that is a decision of

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<v Speaker 3>the Supreme Allied Commander. You know, we are ready to

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<v Speaker 3>respond if needed. So we got the sense from the

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<v Speaker 3>NATO Secretary General that obviously NATO, the Alliance is very

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<v Speaker 3>much on alert here. The meeting that was called by Estonia,

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<v Speaker 3>and indeed Estonia also spoke of the UN Security Council

0:13:31.400 --> 0:13:33.719
<v Speaker 3>on Monday in New York. I mean, this was quite unusual.

0:13:34.320 --> 0:13:37.880
<v Speaker 3>There's now a lot of concern about these repeated drone incursions,

0:13:38.040 --> 0:13:41.360
<v Speaker 3>particularly in Copenhagen. Just next week, Caroline is going to

0:13:41.360 --> 0:13:44.880
<v Speaker 3>be a big meeting of EU leaders and European leaders,

0:13:45.040 --> 0:13:48.680
<v Speaker 3>two day meeting in Copenhagen. So the timing of this

0:13:48.840 --> 0:13:51.600
<v Speaker 3>incursion that closed the airport is quite interesting.

0:13:52.520 --> 0:13:55.480
<v Speaker 2>Yes, indeed, and there has been a lot going on

0:13:55.840 --> 0:13:57.960
<v Speaker 2>at the UN and also on the sidelines. I mean

0:13:58.000 --> 0:14:01.480
<v Speaker 2>Trump's speech. You mentioned how sort of aggressive it was,

0:14:03.040 --> 0:14:06.679
<v Speaker 2>and how President Trump was touting what he sees as

0:14:06.720 --> 0:14:10.240
<v Speaker 2>his big wins, ending war, wasn't doing trade deals and

0:14:10.400 --> 0:14:15.640
<v Speaker 2>ending immigration into cutting immigration into America. But that very

0:14:15.679 --> 0:14:20.360
<v Speaker 2>harsh criticism of Europe, also of Hamaz, also of the

0:14:20.480 --> 0:14:23.000
<v Speaker 2>UN itself. I mean, the United Nations seems to be

0:14:23.080 --> 0:14:25.840
<v Speaker 2>dealing with the worst crisis in its history.

0:14:25.880 --> 0:14:30.840
<v Speaker 3>Really, yes, And the United States, which is the biggest

0:14:30.840 --> 0:14:34.200
<v Speaker 3>financial contributor by far to the UN, is not on

0:14:34.280 --> 0:14:36.600
<v Speaker 3>board with a lot of what the UN is doing.

0:14:36.680 --> 0:14:40.840
<v Speaker 3>It's already pulled out of some agencies and it effectively

0:14:40.880 --> 0:14:43.920
<v Speaker 3>hasn't paid its bill for the UN since last year.

0:14:44.040 --> 0:14:46.920
<v Speaker 3>So I think the UN Deecretary General has admitted that

0:14:47.040 --> 0:14:51.800
<v Speaker 3>the organization has a liquidity crisis, it has a crisis

0:14:51.840 --> 0:14:55.680
<v Speaker 3>of identity, and it's marking its Asian anniversary this year.

0:14:56.200 --> 0:14:58.440
<v Speaker 3>But it is interesting to Donald Trump hit on some

0:14:58.480 --> 0:15:01.520
<v Speaker 3>of those points. Even he was even critical of the UK.

0:15:01.760 --> 0:15:04.720
<v Speaker 3>Just after his visit. He talked about, you know, the

0:15:04.840 --> 0:15:08.119
<v Speaker 3>policy on wind turbine, saying that they're ruining the Scottish

0:15:08.400 --> 0:15:12.960
<v Speaker 3>and English countryside. He took us wipe at the London mayor,

0:15:13.040 --> 0:15:17.360
<v Speaker 3>said he can. He also talked about climate change, which

0:15:17.360 --> 0:15:19.960
<v Speaker 3>was of a big focus for the UN through its

0:15:19.960 --> 0:15:25.200
<v Speaker 3>cop system, calling it a con job. So yes, a

0:15:25.360 --> 0:15:31.280
<v Speaker 3>very belligerent and kind of isolationist speech by Donald Trump. Now,

0:15:31.320 --> 0:15:33.440
<v Speaker 3>I suppose the other way of looking at this is

0:15:33.480 --> 0:15:37.040
<v Speaker 3>that he did hold a series of bilateral meetings during

0:15:37.080 --> 0:15:42.040
<v Speaker 3>the day with European leaders in particular, also of course

0:15:42.240 --> 0:15:45.200
<v Speaker 3>the Argentinian leader as well, But that I suppose to

0:15:45.360 --> 0:15:48.000
<v Speaker 3>show that there was still an engagement there. He spent

0:15:48.080 --> 0:15:52.280
<v Speaker 3>the day there meeting leaders, having a reception, later having

0:15:52.360 --> 0:15:55.560
<v Speaker 3>serious conversations with people like Vladimir Lensky. So for all

0:15:55.600 --> 0:15:59.920
<v Speaker 3>the rhetoric brawl, the bluster in his speech, there was

0:16:00.240 --> 0:16:02.960
<v Speaker 3>a lot of diplomacy that happened, and the United States

0:16:03.000 --> 0:16:04.840
<v Speaker 3>was at the center of that yesterday in the UN.

0:16:05.320 --> 0:16:07.720
<v Speaker 2>Yes, that's very interesting, isn't it. Suzanne, thank you so

0:16:07.760 --> 0:16:09.960
<v Speaker 2>much for your time and being with us today. That

0:16:10.080 --> 0:16:14.200
<v Speaker 2>is Bloomberg's Brussels bureau chief Suzanne lynch Worth, noting also

0:16:14.240 --> 0:16:17.520
<v Speaker 2>there was some pushback from the UK government on that criticism,

0:16:17.560 --> 0:16:20.960
<v Speaker 2>both from the Energy Secretary Ed Miliband and also from

0:16:21.000 --> 0:16:25.480
<v Speaker 2>the London mayor, Sadiq Khan. Stay with us more from

0:16:25.480 --> 0:16:30.040
<v Speaker 2>Bloomberg Day Bake EUOP coming up after this. Europe's money

0:16:30.120 --> 0:16:33.480
<v Speaker 2>managers have done a string of high profile deals beginning

0:16:33.520 --> 0:16:36.800
<v Speaker 2>to reshape the industry and push back against the large

0:16:37.040 --> 0:16:40.320
<v Speaker 2>US firms like black Rock and Vanguard and JP Morgan

0:16:40.680 --> 0:16:44.800
<v Speaker 2>as passive investment funds have grown in popularity and Europe's

0:16:44.800 --> 0:16:49.360
<v Speaker 2>asset managers are still very fragmented. Bloomberg's asset management reporter

0:16:49.480 --> 0:16:53.120
<v Speaker 2>Leo ken Scherper has penned this piece. He joins me, now,

0:16:53.320 --> 0:16:56.480
<v Speaker 2>good to see you, Leo. What is the situation facing

0:16:56.480 --> 0:17:00.360
<v Speaker 2>Europe's asset managers? And so also I guess that means

0:17:00.560 --> 0:17:02.200
<v Speaker 2>what is driving consolidation?

0:17:03.120 --> 0:17:06.320
<v Speaker 9>Good morning, Caroline, thank you, good to see you as well. Yeah,

0:17:06.359 --> 0:17:09.600
<v Speaker 9>it's certainly not a new dynamic, but the pressure is

0:17:09.960 --> 0:17:12.800
<v Speaker 9>increasing here. First of all, you've got the flight to

0:17:13.040 --> 0:17:16.480
<v Speaker 9>passive products. You've had it for over a decade, which

0:17:16.520 --> 0:17:20.160
<v Speaker 9>means for the asset managers lower revenue margins and at

0:17:20.160 --> 0:17:23.200
<v Speaker 9>the same time you've got rising costs. And for European

0:17:23.240 --> 0:17:27.000
<v Speaker 9>asset managers in particular, they are also seeing coming more

0:17:27.040 --> 0:17:29.480
<v Speaker 9>under pressure from large US firms who have been winning

0:17:29.560 --> 0:17:33.280
<v Speaker 9>market share over the past decade, especially again in passive products.

0:17:33.680 --> 0:17:36.440
<v Speaker 9>And in Europe a lot of asset managers are also

0:17:36.480 --> 0:17:39.760
<v Speaker 9>controlled by banks and insurers, and these you know, big

0:17:39.800 --> 0:17:44.320
<v Speaker 9>firms now wondering you know, actually asset management only makes

0:17:44.400 --> 0:17:47.520
<v Speaker 9>up a very small part of our overall bottom line.

0:17:47.880 --> 0:17:51.600
<v Speaker 9>Should we double down or should we exit? So European

0:17:51.600 --> 0:17:54.680
<v Speaker 9>asset managers overall have have long agreed that they need

0:17:54.720 --> 0:17:58.520
<v Speaker 9>to merge in order to survive. And the new development

0:17:58.520 --> 0:18:00.719
<v Speaker 9>that we've seen over the last twelve months is that

0:18:00.720 --> 0:18:04.200
<v Speaker 9>we're now also seeing action. You know, b MP has

0:18:04.240 --> 0:18:07.760
<v Speaker 9>acquired acc Investment Managers that has created a one point

0:18:07.760 --> 0:18:11.000
<v Speaker 9>eight trillion dollar asset manager. And you also had Generally

0:18:11.000 --> 0:18:14.400
<v Speaker 9>and Natixis agree on a deal that would create Europe's

0:18:14.400 --> 0:18:17.800
<v Speaker 9>second biggest asset manager. And of course we have reported

0:18:17.800 --> 0:18:20.920
<v Speaker 9>the talks between a Mundi and Alliance Global Investors, with

0:18:21.240 --> 0:18:23.159
<v Speaker 9>which are now on hold.

0:18:23.560 --> 0:18:28.000
<v Speaker 2>Okay, so one of the challenges then to get more

0:18:28.040 --> 0:18:31.879
<v Speaker 2>of these deals happening. I mean, what's the kind of

0:18:31.880 --> 0:18:32.919
<v Speaker 2>pipeline looking like?

0:18:33.200 --> 0:18:36.600
<v Speaker 9>Yeah, exactly. So I've just mentioned the talks between a

0:18:36.680 --> 0:18:39.920
<v Speaker 9>Mundi and Alliance and this isn't a very europe specific problem,

0:18:40.240 --> 0:18:43.080
<v Speaker 9>but it's always a question about who gets to take control.

0:18:43.480 --> 0:18:46.159
<v Speaker 9>You know, We've had a lot of infamous co CEO

0:18:46.280 --> 0:18:49.240
<v Speaker 9>structures in corporate history, and that will always be a

0:18:49.240 --> 0:18:52.560
<v Speaker 9>curveball to big deals and asset manager and beyond. And

0:18:52.640 --> 0:18:57.360
<v Speaker 9>the second, the second curveball is, you know, national politics

0:18:57.400 --> 0:19:00.199
<v Speaker 9>definitely gets in the way. There's a fair amount with

0:19:00.280 --> 0:19:04.800
<v Speaker 9>doubt now that generally is deal with, that TIXIS will

0:19:04.800 --> 0:19:07.360
<v Speaker 9>go ahead, in part because the Italian government isn't too

0:19:07.400 --> 0:19:10.560
<v Speaker 9>fond of the prospect that decision makers at Generally, which

0:19:10.600 --> 0:19:13.919
<v Speaker 9>is a major buyer of Italian government bonds, will slip

0:19:14.040 --> 0:19:18.240
<v Speaker 9>further away from the Italian government's influence. And then another

0:19:19.119 --> 0:19:23.240
<v Speaker 9>bit quirk, slightly quirky curveball is that one of the

0:19:23.320 --> 0:19:28.520
<v Speaker 9>drivers behind BMP's acquisition of XIM has been this accounting

0:19:28.600 --> 0:19:32.040
<v Speaker 9>perk known as the Danish compromise, and that allows banks

0:19:32.080 --> 0:19:36.520
<v Speaker 9>to buy asset managers with a preferential capital treatment. Now,

0:19:36.720 --> 0:19:39.680
<v Speaker 9>the ECB has since said earlier this year, to many

0:19:39.720 --> 0:19:42.439
<v Speaker 9>people's surprise, well actually we don't think it's right that

0:19:42.480 --> 0:19:45.159
<v Speaker 9>banks get a better treatment for buying an asset manager.

0:19:45.280 --> 0:19:47.960
<v Speaker 9>Let's let's not do that. So that perk is now gone,

0:19:48.400 --> 0:19:51.480
<v Speaker 9>and you know that is expected to at least slow

0:19:51.600 --> 0:19:53.000
<v Speaker 9>down a bit of the deal making.

0:19:55.280 --> 0:19:58.040
<v Speaker 1>This is Bloomberg Daybreak Europe, your morning brief on the

0:19:58.119 --> 0:20:01.160
<v Speaker 1>stories making news from London to and beyond.

0:20:01.480 --> 0:20:05.480
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<v Speaker 2>I'm Caroline Hepka.

0:20:22.400 --> 0:20:24.800
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