WEBVTT - Bitcoin ETF Controversy; Boeing CEO Admits Mistakes

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<v Speaker 1>Good morning.

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

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

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<v Speaker 3>We begin with the drama surrounding the highly anticipated decision

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<v Speaker 3>into the United States first exchange traded fund tied directly

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<v Speaker 3>to bitcoin. We get the latest from Bloomberg's John Tucker. John,

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<v Speaker 3>what's the latest, Nathan?

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<v Speaker 4>You're going to add this to the long list of

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<v Speaker 4>twists and turns in the ten plus year effort to

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<v Speaker 4>bring a spot bitcoin to EDF to market. Somebody hacked

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<v Speaker 4>the ex account of the Securities and Exchange Commission. It

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<v Speaker 4>made a false posts the SEC had approved a Bitcoin ETF.

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<v Speaker 4>The agency quickly denied any approval and said its ex

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<v Speaker 4>account had been compromised. The false post on the SEC's

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<v Speaker 4>X account was up for a number of minutes before

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<v Speaker 4>the agency clarified it was inaccurate, But in that period

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<v Speaker 4>Bitcoin posted a jump to almost forty eight thousand dollars

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<v Speaker 4>before falling back to forty five thousand. About a dozen

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<v Speaker 4>companies have applied to listingts back by bitcoin in the US.

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<v Speaker 4>The SEC has until today to take action at least

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<v Speaker 4>in one of those applications. I'm John Tucker, Bloomberg radio.

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<v Speaker 2>All right, John, thank you well. Now we want to

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<v Speaker 2>get the latest on the grounded Boeing seven thirty seven

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<v Speaker 2>Max nine. The planemaker CEO Dave Calhoun says the company

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<v Speaker 2>will have to face its own shortcomings as it deals

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<v Speaker 2>with the door plug belowout on last week's Alaska Airlines flight.

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<v Speaker 5>We're going to approach this number one acknowledging our mistake.

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<v Speaker 5>We are going to approach it with one hundred percent

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<v Speaker 5>in complete transparency every step of the way. We're going

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<v Speaker 5>to work with the NTSB, who is investigating the accident itself,

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<v Speaker 5>to find out what the weak cause is. I have

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<v Speaker 5>a long experience with this group. They're as good as

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<v Speaker 5>it gets.

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<v Speaker 2>And Boeing CEO Dave Calhoun fought back tears as he

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<v Speaker 2>addressed an all hands meeting on the incident. Alaska and

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<v Speaker 2>United Airlines say they've discovered more Max nine jets with

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<v Speaker 2>loose bulls after the FAA ordered the model grounded formally.

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<v Speaker 2>Inspections still have not yet begun.

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<v Speaker 3>All right, Keren, Well, let's turn to politics now. A

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<v Speaker 3>federal appeals court appears skeptical of Donald Trump's claim that

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<v Speaker 3>he's immune from prosecution on charges that he illegally tried

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<v Speaker 3>to overturn the twenty twenty election. Bloomberg's Amy Morris reports

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<v Speaker 3>from Washington.

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<v Speaker 6>The former president was in the courtroom during the hearing

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<v Speaker 6>when Appeals Court Judge Florence pen asked a Trump lawyer

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<v Speaker 6>whether a president would be immune for having taken a

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<v Speaker 6>bribe or ordering Seal Team six to murder a political rival.

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<v Speaker 6>Trump's legal team responded that the president would have to

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<v Speaker 6>be impeached and convicted first. At a press conference after

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<v Speaker 6>the hearing, Trump said that denying him immunity would cause

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<v Speaker 6>quote bedlam in the country. Trump is also expected to

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<v Speaker 6>sit in on a hearing tomorrow in his civil fraud

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<v Speaker 6>case in New York. In Washington, Amy Morris Bloomberg Radio.

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<v Speaker 2>All right, Amy, thanks, so we're learning more about the

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<v Speaker 2>hospitalization of Defense Secretary Lloyd Austin and the lapse in

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<v Speaker 2>communication regarding his whereabouts. Austin had prostate cancer surgery on

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<v Speaker 2>December twenty second, and was re admitted to the hospital

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<v Speaker 2>on New Year's Day because of complications. National Security Council

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<v Speaker 2>spokesperson John Kirby explained the timeline surrounding Austin's condition and

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<v Speaker 2>when the president knew about it.

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<v Speaker 7>He was not informed until last Friday that Secretary Austin

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<v Speaker 7>was in the hospital. He was not informed until this

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<v Speaker 7>morning that the root cause of that hospitalization was prostate cancer.

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<v Speaker 2>National Security Council spokesperson John Kirby, the White House has

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<v Speaker 2>announced a review of proto calls around Cabinet secretaries who

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<v Speaker 2>are unreasonable or incapacitated.

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<v Speaker 3>Well, another cabinet secretary, Secretary of State Anthony Blincoln, is

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<v Speaker 3>still in the Middle East, Karen. He meets today with

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<v Speaker 3>Palestinian President Mahmoud Abbas in Tel Aviv. Yesterday, Blincoln said

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<v Speaker 3>Israel must stop undercutting Palestinian governance and rein in settler violence.

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<v Speaker 8>Israel must stop taking steps that undercut Palestin's ability to

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<v Speaker 8>govern themselves effectively extrame the settler violence carried out with impunity.

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<v Speaker 8>Settlement expansion, demolitions, evictions all make it harder, not easier,

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<v Speaker 8>for Israel to achieve lasting.

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<v Speaker 3>Piece and a Secretary blinkn has met with the leaders

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<v Speaker 3>of Saudi Arabia, Jordan, Cattter, the United Arab Emirates, and

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<v Speaker 3>Turkey during his latest Middle East trip.

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<v Speaker 2>Well, Nathan, we want to get back to the markets

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<v Speaker 2>and update you on a story we told you about yesterday,

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<v Speaker 2>It is now official. Hewlett Packard Enterprise has agreed to

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<v Speaker 2>buy Juniper Networks for fourteen billion dollars. The maker of

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<v Speaker 2>data center hardware will pay forty dollars to share in

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<v Speaker 2>cash for Juniper. That price represents more than half of

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<v Speaker 2>HPE's twenty one billion dollar market value and a thirty

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<v Speaker 2>two percent premium over Juniper's closing price before talks of

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<v Speaker 2>a deal emerged.

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<v Speaker 3>Sticking with the tech theme, Karen Ces the Consumer Technology

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<v Speaker 3>Association's annual trade show of all Things Tech is underway

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<v Speaker 3>in Las Vegas, and Bloomberg Technology reporter Ed Ludlow is

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<v Speaker 3>covering the show for.

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<v Speaker 9>US Day one at cs Las Vegas. The theme is

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<v Speaker 9>definitely AI everything. Take, for example, Walmart, a big box retailer,

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<v Speaker 9>but putting a lot of emphasis on a new generative

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<v Speaker 9>AI search tool in the Walmart app on iOS only.

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<v Speaker 9>Instead of searching for a specific item, the generative AI

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<v Speaker 9>search allows you to look for an event or a theme.

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<v Speaker 9>Then there's a kind of mainstay announcement. What was interesting

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<v Speaker 9>is Google and Amazon both went after Apple's airplay, So

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<v Speaker 9>in Google's case, they're working on the ability to cast

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<v Speaker 9>video from an Android smartphone to a TV. Amazon actually

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<v Speaker 9>want to step further. They developed technology where you can

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<v Speaker 9>stream video from either an Android phone or an iOS

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<v Speaker 9>or iPhone to Amazon's own TV hardware. Ed Ludlow for

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<v Speaker 9>Bloomberg News in Las Vegas, Nevada.

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<v Speaker 2>All right, Ed, thank you well. I did mention Amazon

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<v Speaker 2>and they are also making news this morning at a

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<v Speaker 2>different front. Bloomberg News has learned Amazon's live streaming site

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<v Speaker 2>Twitch is poised to get thirty five percent of its staff,

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<v Speaker 2>and that's about five hundred workers. Time now for a

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<v Speaker 2>look at some of the other stories making news around

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<v Speaker 2>the world, and for that we're joined by Bloomberg's Amy

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<v Speaker 2>Morris Samy.

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<v Speaker 6>Good morning, Good morning, Kieren. More than forty states are

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<v Speaker 6>under blizzard, wind, snow or flood alerts. Winter storms continue

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<v Speaker 6>to blanket the country. Bloomberg meteorologist Robed Carolyn.

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<v Speaker 10>Significant storm system that spent the last twenty four hours

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<v Speaker 10>wreaking havoc from the Great Lakes to the Gulf Coast.

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<v Speaker 10>Now lifting out of the northeast. The worst of the

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<v Speaker 10>weather of this morning across eastern portions of New England,

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<v Speaker 10>but we'll still see snow on the backside of the

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<v Speaker 10>system from Michigan into parts of the Ohio and Tennessee

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<v Speaker 10>River valleys. Scattered showers are possible over Virginia and the Carolinas.

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<v Speaker 10>The heavy rain, though in north in New England, should end,

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<v Speaker 10>as should the snow, but windy conditions will continue from

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<v Speaker 10>the mid Atlantic into the Northeast today.

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<v Speaker 6>Bloomberg Meteorologist Rob Carolyn said at Republican leaders say Congress,

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<v Speaker 6>we'll need another temporary spending measure to avoid a partial

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<v Speaker 6>government shut down in ten days. How's Republican Matt Rosendale

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<v Speaker 6>of Montana tells ABC he does not support the bipartisan

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<v Speaker 6>compromise on spending.

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<v Speaker 11>Cast we're still looking at about one point six trillion

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<v Speaker 11>dollars spend in discretionary spending, and we're going to be

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<v Speaker 11>holding a press conference with members of the House and

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<v Speaker 11>Senate saying that we are more concerned with securing our

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<v Speaker 11>southern border and making sure that that is taken care

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<v Speaker 11>of than we are in writing another check to Joe

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<v Speaker 11>Biden to continue his agenda, and.

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<v Speaker 6>The Senate Republican John Thune says they will need a

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<v Speaker 6>stopgap measure to march. Minority leader Mitch McConnell acknowledged there's

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<v Speaker 6>just not enough time to resolve lingering spending differences before

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<v Speaker 6>the deadline.

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<v Speaker 12>We need to prevent a government shutdown, and so the

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<v Speaker 12>obvious question is how long does the cr need to

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<v Speaker 12>be And that'll be up to the Majority leader and

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<v Speaker 12>the Speaker to determine the links at.

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<v Speaker 6>How Speaker Mike Johnson has said he will not bring

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<v Speaker 6>a continuing resolution to the floor for a vote. Vice

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<v Speaker 6>President Kamala Harris was back in Atlanta for a roundtable

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<v Speaker 6>discussion on protecting voting rights.

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<v Speaker 13>We have seen in the state of Georgia by example

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<v Speaker 13>of what is happening in the country, anti voter law

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<v Speaker 13>laws that have limited dropboxes made it illegal to even

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<v Speaker 13>provide food and water to people standing in line, often

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<v Speaker 13>for hours.

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<v Speaker 6>Vice President Harris met with city and state leaders near

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<v Speaker 6>the Georgia Tech Campus. Global news twenty four hours a

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<v Speaker 6>day and whenever you want it with Bloomberg News. Now

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<v Speaker 6>I Amy Morris in this is Bloomberg Karen.

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<v Speaker 2>All right, Amy, thank you well. We do bring you

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<v Speaker 2>news throughout the day right here on Bloomberg Radio, much

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<v Speaker 2>as Amy said, but now also as she said, you

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<v Speaker 2>can get the latest news on demand whenever you want it.

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<v Speaker 2>You just subscribe to Bloomberg News Now to get the

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<v Speaker 2>latest headlines of the click of a button, you can

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<v Speaker 2>get informed on your schedule. You can listen and subscribe

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

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<v Speaker 2>dot com plus Apple, Spotify, and anywhere else you get

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<v Speaker 2>your podcasts. Well, and it's time now for the Bloomberg

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<v Speaker 2>Sports Update. Here's John stash Hour John Karn.

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<v Speaker 14>Just two years ago, Mike Rabel was the NFL the

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<v Speaker 14>year he coached the Tennessee Titans to the AFC Championship

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<v Speaker 14>game back in twenty nineteen. But after four straight winning seasons,

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<v Speaker 14>two seasons under five hundred six to eleven, this past

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<v Speaker 14>year and the Titans have fired dray Ball, and that

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<v Speaker 14>immediately begins seculation that he could become the new coach

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<v Speaker 14>of the New England Patriots, assuming Bill Belichick departs. Raybell

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<v Speaker 14>played for the Patriots for eight years, won three Super Bowls.

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<v Speaker 14>The biggest underdog of Wildcard Weekend the Pittsburgh Steelers. They

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<v Speaker 14>have to go play red hot Buffalo, and the Steelers

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<v Speaker 14>won't have their best defensive player, TJ Wantt out with

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<v Speaker 14>a knee injury. Mason Rudolph will be their quarterback, and

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<v Speaker 14>he was the third string QB for much of this season.

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<v Speaker 14>Tyrese Haliburton has the strained hamstring injury, but it could

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<v Speaker 14>have been worse. He's gonna miss only a couple of weeks.

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<v Speaker 14>Haliburton averaging twenty four points the game. He leads the

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<v Speaker 14>NBA in assists. The next have won five straight since

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<v Speaker 14>they made that trade with Toronto. They blew out Portland.

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<v Speaker 14>The Lakers top Toronto by one. Anthony Davis scored forty one.

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<v Speaker 14>Memphis just lost John Moran for the season, but had

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<v Speaker 14>to win at Dallas's Desmond Main score thirty two. Minnesota

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<v Speaker 14>improving to twenty six and ten with a win in Orlando,

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<v Speaker 14>Detroit falling to three and thirty four. The Pistons blown

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<v Speaker 14>out by Sacramento. Perdue, number one in the college basketball

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<v Speaker 14>lost at Nebraska Huskers, beating number one for the first

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<v Speaker 14>time in forty one years, and second rank Houston, who

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<v Speaker 14>was undefeated, was upset by Iowa State. John Stanshower Bloomberg.

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<v Speaker 15>Sports from coast to coast, from New York to San Francisco,

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<v Speaker 15>Boston to Washington, DC, nationwide on Sirius exam. The Bloomberg

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<v Speaker 15>Business app in Bloomberg dot com. This is Bloomberg Daybreak.

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<v Speaker 3>Good morning, I'm Nathan Hager. As we still wait for

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<v Speaker 3>a decision from the Securities at Exchange Commission on approvals

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<v Speaker 3>for the first spot bitcoin ETFs. Investors briefly thought that

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<v Speaker 3>decision was made yesterday, only to find out the SEC's

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<v Speaker 3>social media had been hacked. New questions about security at

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<v Speaker 3>the agency tasked with ensuring the security of your investments.

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<v Speaker 3>Bloomberg's Crity Gupta is here with us now. To call

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<v Speaker 3>this an embarrassment for the SEC seems like it might

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<v Speaker 3>be understating things.

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<v Speaker 16>Yeah, it's a really interesting and almost ironic situation that

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<v Speaker 16>you see from the SEC and of course a lot

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<v Speaker 16>of these bitcoin issuers, because at its core of the

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<v Speaker 16>concern about this ETF was simply this idea that bitcoin

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<v Speaker 16>is a very volatile asset. It's a decentralized asset, it's

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<v Speaker 16>a hard to track asset, and that means that if

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<v Speaker 16>you start to create a vehicle, in this case, an

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<v Speaker 16>ETF that allows the masses and the general public easier

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<v Speaker 16>access to this volatile cryptocurrency, basically, what might the repercussions

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<v Speaker 16>of that be.

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<v Speaker 17>Cybersecurity was one of them. Hacking was one of them.

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<v Speaker 16>So it's only kind of ironic on a day where,

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<v Speaker 16>or I guess the day before, where largely the expectation

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<v Speaker 16>was that the SEC would actually give some sort of approval.

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<v Speaker 16>That expectation also shared, by the way, by our Bloomberg

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<v Speaker 16>Intelligence ETF team, that this is exactly how it all

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<v Speaker 16>plays out on by the way, a social media platform

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<v Speaker 16>owned by Elon Musk, who himself.

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<v Speaker 17>Has been quite an advocate for the cryptocurrency.

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<v Speaker 3>And he's also been at loggerheads with SEC chairman Gary

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<v Speaker 3>Gensler in the past, not just about crypto but about

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<v Speaker 3>his own trying to get Tesla to go private. We

0:12:28.040 --> 0:12:32.000
<v Speaker 3>remember that four to twenty tweet a while back, and

0:12:32.640 --> 0:12:35.720
<v Speaker 3>the history that Elon Musk has with the SEC.

0:12:37.080 --> 0:12:39.480
<v Speaker 16>Yeah, and ironically, the SEC is now going to be

0:12:39.480 --> 0:12:43.760
<v Speaker 16>investigating themselves for the idea of simply did the call

0:12:43.840 --> 0:12:45.880
<v Speaker 16>kind of come from inside the house at the end

0:12:45.880 --> 0:12:48.880
<v Speaker 16>of the day, because it's been investigated from the social

0:12:48.880 --> 0:12:52.120
<v Speaker 16>media platform from ex's perspective about the actual hack itself,

0:12:52.720 --> 0:12:56.400
<v Speaker 16>and it's been found out that it's actually wasn't a

0:12:56.440 --> 0:12:59.800
<v Speaker 16>flaw in the platform itself. In fact, someone got a

0:12:59.840 --> 0:13:02.840
<v Speaker 16>home hold of a number associated with the account. Because

0:13:02.840 --> 0:13:06.679
<v Speaker 16>the account did have two factor verification, they were able

0:13:06.720 --> 0:13:08.440
<v Speaker 16>to post something like this. But now there's a big

0:13:08.520 --> 0:13:11.200
<v Speaker 16>question about whether that person or that individual or the

0:13:11.280 --> 0:13:15.959
<v Speaker 16>organization was within the SEC. And for that ironically, again,

0:13:16.200 --> 0:13:19.840
<v Speaker 16>the SEC now investigating themselves for market manipulation because it

0:13:19.880 --> 0:13:23.240
<v Speaker 16>did move billions of dollars in cryptocurrency.

0:13:24.000 --> 0:13:26.719
<v Speaker 3>Yeah, it's more than just an irony. It's raising a

0:13:26.760 --> 0:13:29.880
<v Speaker 3>lot of questions about a security in and of itself

0:13:29.960 --> 0:13:35.520
<v Speaker 3>within the SEC. Does this affect the timeline for whatever

0:13:35.559 --> 0:13:38.959
<v Speaker 3>the SEC is going to decide about bigcoin ETFs to

0:13:39.400 --> 0:13:42.679
<v Speaker 3>have this kind of hiccup, So.

0:13:42.640 --> 0:13:45.120
<v Speaker 17>The expectation is that it shouldn't affect the timeline.

0:13:45.200 --> 0:13:47.240
<v Speaker 16>So by the end of today, basically we should get

0:13:47.240 --> 0:13:50.200
<v Speaker 16>an actual decision by the SEC about whether they or

0:13:50.240 --> 0:13:52.440
<v Speaker 16>not they approved or at least make a decision on

0:13:52.600 --> 0:13:55.760
<v Speaker 16>at least one of the etf that a filed. Remember

0:13:55.760 --> 0:13:58.840
<v Speaker 16>we have I believe six that are currently the attention

0:13:58.960 --> 0:14:01.640
<v Speaker 16>is on. It could paved the way for plenty more

0:14:02.120 --> 0:14:05.720
<v Speaker 16>after that, So it shouldn't change the timeline. If it does, however,

0:14:06.120 --> 0:14:09.000
<v Speaker 16>it would be one to mark for the history books,

0:14:09.040 --> 0:14:11.880
<v Speaker 16>because never in history of the SEC's approval process for

0:14:11.960 --> 0:14:15.120
<v Speaker 16>ETF regardless of whether it's a Bitcoin ETF or just

0:14:15.360 --> 0:14:18.480
<v Speaker 16>a different kind of asset class. Do they reject ETF

0:14:18.920 --> 0:14:22.280
<v Speaker 16>this late in the process. And that's why you start

0:14:22.320 --> 0:14:24.880
<v Speaker 16>to see a lot of the consensus again, including Bloomberg

0:14:24.920 --> 0:14:29.280
<v Speaker 16>Intelligence saying that this ETF process for Bitcoin should be

0:14:29.320 --> 0:14:31.400
<v Speaker 16>a no brainer simply because they wouldn't have let it

0:14:31.400 --> 0:14:33.080
<v Speaker 16>get this far if approval wasn't.

0:14:32.840 --> 0:14:33.440
<v Speaker 17>In the cards.

0:14:33.680 --> 0:14:37.119
<v Speaker 3>Is this going to raise questions about the approval process itself?

0:14:37.200 --> 0:14:41.560
<v Speaker 3>To have this kind of question raised about what when

0:14:41.600 --> 0:14:48.520
<v Speaker 3>the approval happened? After seeing that Errent tweet yesterday, I think.

0:14:48.400 --> 0:14:51.400
<v Speaker 16>It won't necessarily change the approval process because this was

0:14:51.440 --> 0:14:54.400
<v Speaker 16>something that the SEC has been very outfront about, very

0:14:54.400 --> 0:14:57.800
<v Speaker 16>transparent about about their concerns about Bitcoin in particular. I

0:14:57.880 --> 0:15:00.479
<v Speaker 16>think it might create a little bit more of a

0:15:00.520 --> 0:15:04.320
<v Speaker 16>hesitancy on the investor standpoint, because this was supposed to

0:15:04.360 --> 0:15:06.920
<v Speaker 16>be the moment where you kind of let open the

0:15:06.920 --> 0:15:09.360
<v Speaker 16>floodgates for a lot of people to get that easier

0:15:09.400 --> 0:15:13.040
<v Speaker 16>access to cryptocurrency and more easily included in their portfolios.

0:15:13.200 --> 0:15:15.800
<v Speaker 16>But that might now be met with a little bit

0:15:15.800 --> 0:15:18.120
<v Speaker 16>more hesitancy because it reups, a lot of those issues

0:15:18.160 --> 0:15:21.880
<v Speaker 16>of security, who's behind it, who's involved, and frankly, the

0:15:21.880 --> 0:15:24.720
<v Speaker 16>fact that it is a decentralized currency and you can't

0:15:24.720 --> 0:15:27.160
<v Speaker 16>track it, which is why it's so hard, even in

0:15:27.200 --> 0:15:30.360
<v Speaker 16>this particular scenario to say who is behind this the

0:15:30.400 --> 0:15:31.080
<v Speaker 16>cyber attack.

0:15:33.760 --> 0:15:36.840
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