WEBVTT - Trump Promises "Last Chance" for Iran; Michigan's Primary Progressive Test

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

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<v Speaker 2>Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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

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<v Speaker 3>Karen, we begin with the latest from the Middle East.

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<v Speaker 3>President Trump says he is giving Iran a last chance

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<v Speaker 3>to engage in talks after calling off what he says

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<v Speaker 3>would have been a major attack on the Islamic Republic.

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<v Speaker 4>I want to give him every last chance before decapitation.

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<v Speaker 5>Very tough to do with what we have planned still planned.

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<v Speaker 3>We'll see what happens. President Trump spoke to reporters in

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<v Speaker 3>the Oval Office. Now, Tehran denies its in negotiations with

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<v Speaker 3>the US, but it says talks with Oman to get

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<v Speaker 3>more ships moving through the Strait of Horror moves for

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<v Speaker 3>making progress. We get more from Bloomberg Middle East correspondent

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<v Speaker 3>to Birabu Olmar in Dubai.

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<v Speaker 6>The Ron Andleman are holding negotiations to open a middle

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<v Speaker 6>passageway in the Street of her Moves that would allow

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<v Speaker 6>for a trickle of movement of ships and vessels that

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<v Speaker 6>have been trying to make their way through the Strait

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<v Speaker 6>of removes. And up until yesterday, and we've really been

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<v Speaker 6>still seeing cargo ships attacked in the Strait of Removes,

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<v Speaker 6>and so this negotiation that is taking place between those

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<v Speaker 6>two countries still very much key about opening up a

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<v Speaker 6>pathway that could help ships make their way through the waterway.

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<v Speaker 3>Bloomberg Sabirabo Omar reports a senior Iranian official called on

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<v Speaker 3>the US last night to quote take the first step

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<v Speaker 3>and change its behavior by returning to the terms of

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<v Speaker 3>the interim deal that both sides struck in June.

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<v Speaker 2>Elsewhere in Washington, Nathan Attorney General nominee Todd Blanche's confirmation

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<v Speaker 2>maybe moving forward in the Senate to hold out. Republican

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<v Speaker 2>senators are bagging a deal with Blanche to formally rescind

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<v Speaker 2>an order for a so called anti weaponization fund. And

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<v Speaker 2>he's clarified the scope of President Trump's immunity deal with

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<v Speaker 2>the IRS that limits it to the Tax Agency and

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<v Speaker 2>not other agencies like the Justice Department. President Trump says

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<v Speaker 2>he was not involved in the deal.

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<v Speaker 7>I don't know what they agreed.

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<v Speaker 8>I think Todd Blanche agreed to reconfirm things that he's

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<v Speaker 8>already said, and what he said was ok.

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<v Speaker 2>President Trump, again, speaking from the Oval Office. Administration critics

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<v Speaker 2>say Blanche's deal still doesn't change the text of either

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<v Speaker 2>the anti Weaponization Order or the president's immunity from audits,

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<v Speaker 2>and the Senate Judiciary Committee has kilded a vote on

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<v Speaker 2>Blanch's confirmation Today.

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<v Speaker 3>And Karen elections are in focus today as well, as

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<v Speaker 3>voters head to the polls in a handful of states.

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<v Speaker 3>Bloomberg Zamie Morris reports from Washington.

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<v Speaker 1>Michigan voters will decide a competitive Democratic primary that will

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<v Speaker 1>test the party's progressive wing. Representative Hailey Stevens takes on

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<v Speaker 1>former health official Abdul lc Ed. The winner will face

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<v Speaker 1>former Representative Mike Rogers in November. Virginia voters will choose

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<v Speaker 1>nominees for the House and Senate, including in the second

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<v Speaker 1>congressional district, where there could be a rematch between two

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<v Speaker 1>term Republican Jen Kiggins and the Democrats she unseated in

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<v Speaker 1>twenty twenty two former Representative Elaine Luria. Primary contests are

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<v Speaker 1>also taking place in Washington, Kansas, and Missouri. Eight In Washington,

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<v Speaker 1>Amy Moore as Bloomberg Radio.

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<v Speaker 2>Right, Ami, thank you. Let's turn to the markets now,

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<v Speaker 2>where futures are higher following yesterday's gains on Wall Street,

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<v Speaker 2>The S and P five hundred rows one and a

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<v Speaker 2>half percent. It is now just striking distance of a record.

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<v Speaker 2>The positive earning season is helping fuel gains. The S

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<v Speaker 2>and P five hundred companies are beating expectations at a

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<v Speaker 2>rate of eighty six percent. That's the highest in five years.

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<v Speaker 2>According to Bloomberg Intelligence.

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<v Speaker 3>And in Earnings beats giving a lift this morning to

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<v Speaker 3>shares a Palenteer Karen, they are up nearly seventeen percent.

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<v Speaker 3>The software developer and major military vendor also raised its

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<v Speaker 3>revenue and income forecasts for the full year. Palenteer CEO

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<v Speaker 3>Alex Karp described demand for his company's data analytics tools

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<v Speaker 3>as quote otherworldly.

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<v Speaker 2>Well Nathan. The earnings continue today with fifty companies reporting.

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<v Speaker 2>They include a drug makers Pfizer and Merk, as well

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<v Speaker 2>as tech companies Advanced micro Devices and SpaceX. We get

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<v Speaker 2>more on Elon Musks SpaceX with Bloomberg's Charlie Pellett.

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<v Speaker 5>It's SpaceX's first earnings report. Who's a public company? Analysts

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<v Speaker 5>are likely to press SpaceX CEO Elon Musk on the

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<v Speaker 5>company's newly acquired AI business and the massive spending associated

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<v Speaker 5>with it. Julie ju is research analyst at Moffett Nathanson.

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<v Speaker 6>What you're really going to see coming out of the

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<v Speaker 6>numbers is you're probably going to see a feat in

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<v Speaker 6>the AI business, and.

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<v Speaker 2>You're also going to see continued spend in that business.

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<v Speaker 5>Key topics could also be progress on the company's massive

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<v Speaker 5>Starship rocket and how quickly it will be able to

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<v Speaker 5>launch satellites and people, and plans for becoming a consumer

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<v Speaker 5>wireless operator in New York. Charlie Pellett, Bloomberg Radio, all right, Charlie,

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<v Speaker 5>thank you.

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<v Speaker 3>In Europe, HSBC has announced a new billion dollars share

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<v Speaker 3>buyback after reporting second quarter earnings that beat estimates. The

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<v Speaker 3>bank also raised its cost saving target to two billion

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<v Speaker 3>dollars by the end of this year. We spoke with

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<v Speaker 3>HSBC's CEO, Georgie Henry.

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<v Speaker 8>We are becoming the stronger bank that we set out

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<v Speaker 8>to build. We're very pleased with what we announced this morning.

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<v Speaker 8>We're growing across all our indicators of revenue growing or

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<v Speaker 8>law loans and deposits are growing, our income is growing.

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<v Speaker 8>We generated returns of nineteen and a half percent on

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<v Speaker 8>tangible equity, so this is you know, this is a

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<v Speaker 8>good demonstration of a strong business momentum. We're also very

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<v Speaker 8>pleased with the progress we're making on the strategy, which

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<v Speaker 8>we're executing with precision, with discipline, and at pace.

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<v Speaker 3>HSBC CEO Georgia Henry also says the lender will consider

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<v Speaker 3>boosting its bonus pool for bankers if strong performance continues.

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<v Speaker 3>So the shares are underperforming this morning here and they're

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<v Speaker 3>down one point six percent.

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<v Speaker 2>Well, BP shares, Nathan, they're higher, They're up one and

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<v Speaker 2>a half percent. The oil giants adjusted net income were

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<v Speaker 2>then doubled from a year earlier as the Middle East

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<v Speaker 2>wore royaled oil and gas markets. And we spoke earlier

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<v Speaker 2>with CEO Meg O'Neil.

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<v Speaker 9>We still have quite a bit of work to do,

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<v Speaker 9>so I've been with BP for four months now. I'm

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<v Speaker 9>very pleased with many of the things I've seen. It's

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<v Speaker 9>a group of what really amazing people who are very

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<v Speaker 9>focused on delivering the highest value for the corporation and

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<v Speaker 9>growing shareholder value every single day. But that said, there

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<v Speaker 9>are nificant areas for improvement. That balance sheet is first

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<v Speaker 9>and foremost an area of challenge. You know, we're carrying

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<v Speaker 9>financial liabilities when compared to the size of the corporation

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<v Speaker 9>that are just too.

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<v Speaker 2>High BP CEO Meg O'Neil so. Several companies have expressed

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<v Speaker 2>interest in buying VP's north Sea business.

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<v Speaker 3>And as oil companies continue to brank in record profits

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<v Speaker 3>during the Iran warcare and President Trump is criticizing the

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<v Speaker 3>biggest oil majors in the US, saying they are quote

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<v Speaker 3>making too much money.

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<v Speaker 2>Chevron too much money, ex On Mobile, too much money.

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<v Speaker 10>When you look at one company where they made twelve

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<v Speaker 10>times what they made the year before.

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<v Speaker 4>They're going to give some of that back to the public,

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<v Speaker 4>and they better cut.

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<v Speaker 3>The retail price, the consumer price. Too much money. You surprised.

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<v Speaker 3>I'm saying it. I'll say it loud and clear. I'm

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<v Speaker 3>not happy about it. And that again was President Trump

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<v Speaker 3>in the Oval office. X On Mobile and Chevron made

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<v Speaker 3>twenty nine billion dollars combined in the second quarter. That's

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<v Speaker 3>that mounts to about three hundred and eighteen million dollars

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<v Speaker 3>per day, and it is more than three three times

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<v Speaker 3>the same period a year ago.

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<v Speaker 2>Nathan, we have a milestone for Apple, the company you said,

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<v Speaker 2>it exceeded ten billion dollars in annual sales in India

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<v Speaker 2>for the first time. Last fiscal year, iPhones accounted for

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<v Speaker 2>a significant majority of the sales. India's emerging as one

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<v Speaker 2>of Apple's key sales regions outside of the US and China,

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<v Speaker 2>with the company steadily ramping up its retail network in

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<v Speaker 2>the country.

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<v Speaker 3>Karin, Amazon has become the fifth company to surpass a

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<v Speaker 3>three trillion dollar market value, joining in Video, Alphabet, Microsoft,

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<v Speaker 3>and Apple in that exclusive club. After the bell, it

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<v Speaker 3>was announced that Amazon chair and founder Jeff Bezos filed

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<v Speaker 3>to sell more than four billion dollars worth of the

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<v Speaker 3>company's stock, and those shares are lower bound down more

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<v Speaker 3>than one percent in the pre market.

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<v Speaker 2>I mean, do you have a programming note here, Nathan.

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<v Speaker 2>Bloomberg Radio is introducing a new feature exclusively for Bloomberg

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<v Speaker 2>dot com subscribers and terminal clients. You can help shape

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<v Speaker 2>our conversations by submitting questions for our analysts and experts

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<v Speaker 2>to answer live on air. Subscribers can go to Bloomberg

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<v Speaker 2>dot com slash ask Radio to send in questions and

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<v Speaker 2>you may just hear them asked on the air. That's

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<v Speaker 2>Bloomberg dot Com slash Ask Radio. Time Now for look

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<v Speaker 2>at some of the other stories making news in New

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<v Speaker 2>York and around the world, And for that We're joined

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<v Speaker 2>by Bloomberg's Michael Barr.

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

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<v Speaker 7>President Donald Trump said he's upset with US Attorney Janine

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<v Speaker 7>pirot over her efforts to dismiss charges against the man

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<v Speaker 7>accused of vandalizing the Lincoln Memorial reflecting pool. President Trump

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<v Speaker 7>believes Piro choked when dismissing charges against US Olympic canoeist

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<v Speaker 7>David Hernon.

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<v Speaker 10>I was disappointed with Janine Piro, really disappointed with Janine Perro.

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<v Speaker 4>She she folded like an umbrella.

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<v Speaker 7>Meanwhile, Hearns's attorney said this was proof the evidence was

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<v Speaker 7>just not there. Joshua Cole, manager of Rapid Legal Response

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<v Speaker 7>at Democracy Defenders.

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<v Speaker 11>Action, they finally had to face facts and face the

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<v Speaker 11>reality that their entire case was crumbling before them, and

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<v Speaker 11>so this is the only natural and launchical next step,

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<v Speaker 11>regardless of how highly unusual it is for this to happen.

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<v Speaker 7>Piros said the evidence provided by the Interior Department showed

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<v Speaker 7>the contractor hired to replace the liner was to blame.

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<v Speaker 7>In Michigan, state health officials say two people have died

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<v Speaker 7>in the cyclospora outbreak. They are the first confirmed deaths

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<v Speaker 7>in the US related to the microscopic parasite. Officials said

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<v Speaker 7>that both had underlying health conditions, and arrest has been

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<v Speaker 7>made related to one of the three wildfires burning in

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<v Speaker 7>Washington State. Aaron Fernacci, who is thirty seven, was arrested

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<v Speaker 7>last night for allegedly starting the Old Trails fire Saturday afternoon.

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<v Speaker 7>Spokane County's Sheriff John Knowles said the blaze consumed thousands

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<v Speaker 7>of acres and destroyed hundreds of buildings, most of them homes.

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<v Speaker 7>Knowles says he credits an observant citizen with reporting suspicious behavior.

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<v Speaker 7>Before seeing smoke rising.

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<v Speaker 5>He noticed the male bending down near some grass.

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<v Speaker 9>At that point, the male stood up and looked very nervous,

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<v Speaker 9>according to our citizen witness.

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<v Speaker 7>Sheriff Knowles says Farinacci will make his first court appearance today.

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<v Speaker 7>Global News twenty four hours a day and whenever you

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<v Speaker 7>want it with the Bloomberg News Now Michael Barr and

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<v Speaker 7>this is Bloomberg Karen.

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<v Speaker 2>Thanks Michael, time now for our Bloomberg Sports update, and

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<v Speaker 2>for that we bring in John Stashauer.

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<v Speaker 7>Thanks care.

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<v Speaker 10>A lot of wheeling and dealing before the baseball trade deadline.

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<v Speaker 10>Maybe the biggest move was Baltimore, trading away catcher Adlee Rutchman,

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<v Speaker 10>who was once the first overall pick of the draft.

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<v Speaker 10>A three time All star catcher, he got sent to

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<v Speaker 10>the Red Sox. Luis Theres, a three time batting champ,

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<v Speaker 10>goes from the giants of the Phillies, who will move

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<v Speaker 10>Bryce Harper back to the outfield. The Mets waving the

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<v Speaker 10>white flag on the season they traded away five different players.

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<v Speaker 10>Mauricio Pochettino, the coach of the US men's national team

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<v Speaker 10>in the World Cup, keeps his job. That's your Bloomberg

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<v Speaker 10>Sports Update.

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<v Speaker 2>Stay with us more from Bloomberg Daybreak coming up after this.

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<v Speaker 3>Coast to coast on Bloomberg Radio, nationwide on Serious Exam

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<v Speaker 3>and around the world on Bloomberg dot Com and the

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<v Speaker 3>Bloomberg Business app. This is Bloomberg Daybreak. Good morning. I'm

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<v Speaker 3>Nathan Hager. President Trump is delivering what he says is

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<v Speaker 3>a final warning to Iran after calling off a major

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<v Speaker 3>attack over the weekend to come back to the negotiating table.

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<v Speaker 3>This is the last chance. This is not something that

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<v Speaker 3>it doesn't happen. This is the last chance for them.

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<v Speaker 2>To sign a good document.

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<v Speaker 3>That was President Trump and Oval office from Markstore reporters yesterday.

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<v Speaker 3>Joining us this morning is Mark Champion, who covers the

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<v Speaker 3>Middle East for Bloomberg Opinion. Mark, do you see this

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<v Speaker 3>as a potential last chance for Iran? Good morning? Good morning.

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<v Speaker 4>I mean, we've been here half a dozen times before.

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<v Speaker 4>I think there's you know, it's perfectly possible that President

0:12:00.880 --> 0:12:04.440
<v Speaker 4>Trump will order more air strikes, you know, if the

0:12:04.559 --> 0:12:08.800
<v Speaker 4>Uranians don't sign an agreement. You know, but there's a

0:12:08.800 --> 0:12:12.959
<v Speaker 4>lot of kind of weirdness in here. So first of all,

0:12:13.000 --> 0:12:15.400
<v Speaker 4>you know, the US says that the talks are between

0:12:16.280 --> 0:12:17.240
<v Speaker 4>the US and Iran.

0:12:17.240 --> 0:12:18.440
<v Speaker 3>The Uranians say they aren't.

0:12:18.440 --> 0:12:21.400
<v Speaker 4>They're only talking to the omanis about a very limited

0:12:21.440 --> 0:12:22.080
<v Speaker 4>deal on.

0:12:23.720 --> 0:12:24.920
<v Speaker 3>You know, controlling the Strait.

0:12:25.920 --> 0:12:29.079
<v Speaker 4>So exactly what the document is that you know, President

0:12:29.080 --> 0:12:31.480
<v Speaker 4>Trump wants them to sign not quite clear. If it

0:12:31.559 --> 0:12:34.880
<v Speaker 4>is the Yourmani document, it's going to be one that

0:12:35.720 --> 0:12:39.319
<v Speaker 4>you know, gives the Iranians some control over the Strait.

0:12:39.400 --> 0:12:41.400
<v Speaker 4>They've been very clear that they're not signing anything that

0:12:41.440 --> 0:12:45.400
<v Speaker 4>doesn't and that's control that they didn't have before the war.

0:12:45.800 --> 0:12:48.160
<v Speaker 4>And the purpose of that is a to raise money

0:12:48.160 --> 0:12:53.160
<v Speaker 4>and be to maintain geopolitical leverage. So that this becomes

0:12:53.160 --> 0:12:57.400
<v Speaker 4>a deterrent in their kind of you know, toolbox for

0:12:57.520 --> 0:13:00.520
<v Speaker 4>dealing with other countries, for dealing with the US. Not

0:13:00.640 --> 0:13:03.920
<v Speaker 4>exactly a great outcome for the US, so not kind

0:13:03.960 --> 0:13:06.120
<v Speaker 4>of by definition a good document for the US.

0:13:06.600 --> 0:13:09.640
<v Speaker 3>Well, one thing we have heard from the Iranians is

0:13:09.720 --> 0:13:13.199
<v Speaker 3>that they want the US to, I guess, come back

0:13:13.240 --> 0:13:16.600
<v Speaker 3>to the terms of the June interim deal. That seems

0:13:16.600 --> 0:13:19.840
<v Speaker 3>like it's by the wayside now with these talks going

0:13:19.880 --> 0:13:22.840
<v Speaker 3>on with oman What are the chances of that happening

0:13:22.880 --> 0:13:24.160
<v Speaker 3>coming back to the interim deal.

0:13:25.080 --> 0:13:28.480
<v Speaker 4>Well, a lot of the interim deal, you know, if

0:13:27.960 --> 0:13:31.680
<v Speaker 4>the interim deal is extremely vague. So when the Iranians

0:13:31.679 --> 0:13:33.199
<v Speaker 4>said we want to get back to that, they mean

0:13:33.240 --> 0:13:35.400
<v Speaker 4>that we want to get back to the our interpretation

0:13:35.520 --> 0:13:38.800
<v Speaker 4>of that deal. Their interpretation of that deal was that

0:13:38.920 --> 0:13:43.280
<v Speaker 4>it you know, it said and it actually did say that,

0:13:43.520 --> 0:13:45.560
<v Speaker 4>you know, control of the you know, the status of

0:13:45.600 --> 0:13:49.000
<v Speaker 4>the Strait would be down to a negotiation between the

0:13:49.040 --> 0:13:52.120
<v Speaker 4>Iranians and the Omanis and they would or you know.

0:13:52.120 --> 0:13:53.320
<v Speaker 3>Create a new arrangement.

0:13:54.880 --> 0:13:58.560
<v Speaker 4>But what the you know, their interpretation was that until

0:13:58.640 --> 0:14:01.760
<v Speaker 4>that was all done, you know, they still got to

0:14:01.800 --> 0:14:05.760
<v Speaker 4>control the straight The American interpretation was no, this is

0:14:05.800 --> 0:14:10.040
<v Speaker 4>going to be free traffic, and the ergo you had,

0:14:10.520 --> 0:14:13.920
<v Speaker 4>the deterioration that we had and the end of the ceasefire.

0:14:14.360 --> 0:14:19.520
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