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Speaker 1: Bloomberg Audio Studios, podcasts, radio News.

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Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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Speaker 2: are the stories we're following today.

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Speaker 3: Karen, let's start with Netflix share surging to an all

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Speaker 3: time hight right now through up more than fourteen percent.

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Speaker 3: The streaming giant added eighteen point nine million customers in

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Speaker 3: the fourth quarter. That's its biggest quarterly subscriber gain in history.

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Speaker 3: It was fueled by the return of Squid Game and

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Speaker 3: having its first major live sporting events. Ted Sarandos is

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Speaker 3: the co chief executive officer of Netflix.

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Speaker 4: We are constantly trying to broaden our programming and live

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Speaker 4: events is one of those things, and sports is part

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Speaker 4: of that live of those live of those live events.

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Speaker 4: So when I look at this and say, that's a

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Speaker 4: really fantastic thing, but deno do we But it doesn't

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Speaker 4: really change the underlying economics of full season Big league

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Speaker 4: sports being extremely challenging. If there was a path where

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Speaker 4: we could actually make the economics worth work for both

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Speaker 4: us and the league, we certainly would explore.

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Speaker 3: That's Netflix co CEO Ted Surranders. He says the company's

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Speaker 3: raising prices. The most popular US plan is going to

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Speaker 3: seventeen dollars ninety nine cents a month. That's an increase

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Speaker 3: of two dollars fifty cents. Netflix is also increasing the

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Speaker 3: cost of its cheaper advertising supported plan.

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Speaker 2: Well, John, Netflix is helping to give a boost to futures.

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Speaker 2: This morning, so is Donald Trump's plan to boost the

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Speaker 2: US's plans for artificial intelligence. The President has announced a

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Speaker 2: US joint venture with soft Bank, open Ai, and Oracle

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Speaker 2: to fund the expansion of AI infrastructure. Dubbed Stargate. The

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Speaker 2: project will deploy one hundred billion dollars immediately, with plans

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Speaker 2: to increase that to at least five hundred billion. Open

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Speaker 2: Ai CEO Sam Altman announced the venture next to the President.

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Speaker 5: I'm thrilled we get to do this in the United

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Speaker 5: States of America. I think this will be the most

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Speaker 5: important project of this era. And as Masa said, for

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Speaker 5: AGI to get built here, to create one hundreds of

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Speaker 5: thousands of jobs, to create a new industry centered here,

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Speaker 5: we wouldn't be able to do this without you, mister President,

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Speaker 5: and I'm thrilled that we get to I think it'll

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Speaker 5: be an exciting project. I think we'll be able to

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Speaker 5: do all of the wonderful things that these guys talked about.

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Speaker 5: But the fact that we get to do this in

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Speaker 5: the United States is I think wonderful.

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Speaker 2: Allman's company, open Ai will oversee operations armholdings, Microsoft and

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Speaker 2: in Video will provide technology along with Oracle and open Ai.

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Speaker 2: The announcement comes after Trump rescinded Biden's sweeping executive order

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Speaker 2: on AI. Stocks are moving on this new venture. Shares

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Speaker 2: of Oracle are up eight percent, in Video more than

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Speaker 2: two point six percent, and Microsoft one and a half percent.

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Speaker 2: Soft Bank shares searched ten percent in Asia well.

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Speaker 3: The President also said he'd be open to Oracle chairman

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Speaker 3: Larry Allison or Elon Musk purchasing TikTok as part of

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Speaker 3: a venture with the US government.

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Speaker 6: The deal, I think is this, and I've met with

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Speaker 6: owners of TikTok, the big owners. It's worthless if it

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Speaker 6: doesn't get a permit. It's not like, oh, you can

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Speaker 6: take the US. The whole thing is worthless. With a

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Speaker 6: permanent it's worth like a trillion dollars. So what I'm

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Speaker 6: thinking about saying to somebody is buy it and give

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Speaker 6: half to the United States of America half, and we'll

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Speaker 6: give you the permit. And they'll have a great partner

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Speaker 6: in the United States.

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Speaker 3: Well, TikTok temporarily went offline over the weekend. Trump signed

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Speaker 3: an executive order on his first day in office to

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Speaker 3: extend the deadline for a sale by seventy five days.

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Speaker 3: Billionaire Frank mccoort and Shark Tank investor Kevin O'Leary made

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Speaker 3: a formal offer to buy TikTok earlier this month.

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Speaker 2: Hey Male, John and Davos, Switzerland, business leaders of the

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Speaker 2: World Economic Forum, breed this sigh of relief when President

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Speaker 2: Trump's first day of his second term ended with talk

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Speaker 2: of tariffs rather than any implementation, but they're still concerned

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Speaker 2: about the global impact of Trump's plans. IBM vice chairman

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Speaker 2: and former top Trump advisor Gary Cohen spoke to Bloomberg

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Speaker 2: at the World Economic Forum, saying there will be a

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Speaker 2: lot of deliberation before tariffs are put into place.

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Speaker 7: Even when I was there eight years ago, there was always.

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Speaker 1: A heavy debate on tariffs, on the positives and the

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Speaker 1: negatives of tariffs, on the intended consequences and the unintended consequences.

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Speaker 7: You know, it's day one of a four year administration.

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Speaker 7: You don't have to put tariffs on day one.

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Speaker 2: And IBM Vice chairman Gary Cohane also told Bloomberg that

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Speaker 2: the corporate community remains optimistic a second Trump term will

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Speaker 2: be positive for business.

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Speaker 3: And Trump has widened his tariff threats to include China

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Speaker 3: and the European Union a day after he saw Canada

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Speaker 3: and Mexico. In his sits, we're.

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Speaker 6: Talking about a tariff of ten percent on China based

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Speaker 6: on the fact that this ending fenton all to Mexico

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Speaker 6: in Canada.

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Speaker 3: The threats echo comments made throughout Trump's campaign, but the

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Speaker 3: only actual action taken so far is a call for

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Speaker 3: a review of trade practices that's due April first, potentially

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Speaker 3: giving China and others almost ten weeks to avert new

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Speaker 3: levies or address his demands well.

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Speaker 2: John Trump is also taking steps to cut funding for diversity, equity,

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Speaker 2: and inclusion. The White House says those roles will be

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Speaker 2: placed on paid leave, and their offices related to those

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Speaker 2: programs are being ordered to shut down. In a separate order,

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Speaker 2: the administration moved to limit diversity preferences in federal contracting.

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Speaker 2: That revokes a civil rights era order that sought to

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Speaker 2: reduce racial or gender disparities among government contractors and.

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Speaker 3: Camer We're finding out more about some of the people

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Speaker 3: that Trump pardoned on day one of his term. One

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Speaker 3: is Ross Albrich, the founder of the Silk Road marketplace

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Speaker 3: that fulfills a campaign promise he made to core the

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Speaker 3: cryptocurrency community. Albrooke was sentenced to life in prison in

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Speaker 3: twenty fifteen for running a dark web marketplace where illegal

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Speaker 3: drugs and hacker tools were sold using virtual currencies.

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Speaker 2: And John federal workers they're not the only ones being

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Speaker 2: ordered to return to the office full time. Sources A

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Speaker 2: Major League Baseball to its employees to return to the

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Speaker 2: office five days a week. The league had been on

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Speaker 2: a hybrid policy since the pandemic and.

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Speaker 3: Getting back to markets. Karen Indonesia says it's close to

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Speaker 3: a deal with Apple over an investment plan that would

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Speaker 3: lift a ban on iPhone sixteen sales in the country.

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Speaker 3: Southeast Asia's largest country banned the sale of the new

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Speaker 3: device back in October, saying Apple had failed to comply

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Speaker 3: with domestic manufacturing requirements for smartphones and tablets.

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Speaker 2: When we're watching shares have United Airlines take off. They're

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Speaker 2: up almost three percent at early trading. John the carrier

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Speaker 2: expects a first quarter profit well ahead of Wall Street's

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Speaker 2: estimates as it capitalizes on unusually strong demand for premium

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Speaker 2: and international travel. It's been a good time for United investors.

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Speaker 2: Is stock climb one hundred and thirty five percent last year,

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Speaker 2: compared with the twenty three percent gain for the S

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Speaker 2: and P five hundred index. Time now for a look

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Speaker 2: at some of the other stories making news in New

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Speaker 2: York and around the world. And for that we're joined

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Speaker 2: by Bloomberg's Michael Barr Michael Good.

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Speaker 8: Morning, Morning Care. In twenty two states, including New York,

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Speaker 8: New Jersey, and Connecticut, are filing a lawsuit against President

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Speaker 8: Trump's executive order that would end birthright citizenship. It's a

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Speaker 8: right stated in the fourteenth Amendment. New Jersey Attorney General

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Speaker 8: Matt Platkin says Trump's order is unconstitutional and that presidents

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Speaker 8: don't have the power to change it.

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Speaker 7: They are not kings.

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Speaker 9: They do not have the power to unilaterally rewrite the Constitution.

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Speaker 9: They do not have the power to unilaterally disreard our laws.

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Speaker 9: That's true for Donald Trump, that's true for every president

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Speaker 9: that came before him, and every president who will come

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Speaker 9: after him.

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Speaker 2: A g.

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Speaker 8: Platkin says he is confident this order is never going

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Speaker 8: to take effect. New York City Mayor Eric Adams has

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Speaker 8: some sharp words for the Democratic Party and reiterated his

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Speaker 8: claim that he was targeted by federal prosecutors because he

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Speaker 8: criticized then President Joe Biden's handling of the migrant influx.

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Speaker 8: Mayor Adam spoke with Tucker Carlson.

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Speaker 10: Because some people off to say, well, you know, you

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Speaker 10: don't sound like a Democrat, and you know you seem

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Speaker 10: to have left the party. No, the body left me,

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Speaker 10: and it left working class people in our conversations that

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Speaker 10: we should be talking about. This are not the issues

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Speaker 10: that everyday people that are in power talking about.

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Speaker 8: The interview was recorded from Graycia Mansion. Earlier, at his

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Speaker 8: news briefing, Adams was asked about cooperating with ICE agents

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Speaker 8: if they come to New York City to enforce deportations.

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Speaker 10: We want to bring down the anxiety. We want our

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Speaker 10: immigrants to know that this is a city immigrants, this

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Speaker 10: is a country of immigrants. It's imperative that you go

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Speaker 10: to school, use hospital service, to use the police services.

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Speaker 10: I went over this over and over again, and I'm

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Speaker 10: just not going to keep having the same conversation over

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Speaker 10: and over again.

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Speaker 8: The Trump administration announced it would allow federal immigration agencies

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Speaker 8: to make arrests at schools, churches, and hospitals. A winder

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Speaker 8: storm that drop record breaking snow in New Orleans has

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Speaker 8: spread into Florida and the Carolinas. Meanwhile, a blast of

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Speaker 8: arctic air has also plunged much of the Midwest and

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Speaker 8: the Eastern US into a deep freeze. Global News twenty

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Speaker 8: four hours a day, and whatever you wanted with Bloomberg

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Speaker 8: News Now, I'm Michael Barr, and this is Bloomberg Carroen.

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Speaker 2: All right, Michael Barr, thank you time now for the

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Speaker 2: Bloomberg Sports Update, brought to you by Tri State OHTI.

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Speaker 2: Here's John Stashauer.

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Speaker 1: John, good morning, Good morning care. The Knicks had been

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Speaker 1: exchanging wins and losses throughout January, no two game winning

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Speaker 1: your losing streaks until now. The night after the win

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Speaker 1: over Atlanta at the Garden, they went to Brooklyn got

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Speaker 1: by the Nets ninety nine ninety five Karl Anthony Towns

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Speaker 1: twenty five points, sixteen rebounds. Nets have lost nine of

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Speaker 1: ten and nine straight versus. The next Lakers beat the

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Speaker 1: Wizards by twenty three. The Nuggets beat the Sixers by

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Speaker 1: thirty five. The Rangers an easy win at the Garden

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Speaker 1: five nothing over Ottawa five different goal scorers, including power

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Speaker 1: play tallies less than the minute apart in the third period,

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Speaker 1: first Art Timmy Paner and then Will Cooley. Capital's fifth

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Speaker 1: Stray win three two at Edmonton's Seaton Hall, lost to

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Speaker 1: Marquette Pirates held to one and seven in the Big East.

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Speaker 8: Three new members of the Baseball Hall of Fame.

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Speaker 1: They all played in New York, including CC Sabathia, the

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Speaker 1: Yankee ace for eleven seasons starting in two thousand and

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Speaker 1: nine when he played a big role on the yanks

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Speaker 1: last championship team. Sabathia goes in first year on the

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Speaker 1: ballot and on the MLB Network talked about what he

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Speaker 1: was proud to do on the mound.

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Speaker 11: Oh, that was something that was important to me, was

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Speaker 11: to be able to be available, you know, and take

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Speaker 11: the balls as many times as possible during the season.

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Speaker 11: And you know, I wanted my guys in the clubhouse

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Speaker 11: so we're in the locker room, to feel like every

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Speaker 11: time I went out there every fifth day, that we

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Speaker 11: had a chance to win. And you know, if I

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Speaker 11: was available, I was going to take the.

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Speaker 1: Ball CEC got eighty seven percent of the vote. His

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Speaker 1: one time Yankee teammate Etro Suzuki got ninety nine all

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Speaker 1: but one vote, so Mariano Rivera is still the only

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Speaker 1: one to go in unanimously. Hetro, of course, a hit

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Speaker 1: machine both in Japan and the Majors, mostly with Seattle.

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Speaker 1: Reliever Billy Wagner got in in his tenth and final

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Speaker 1: year on the ballot. His best seasons were in Houston,

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Speaker 1: but he also spent three years with the Mets as

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Speaker 1: Aaron Glenn yesterday had his second interview for the Jets

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Speaker 1: coaching job. There was an ESPN report that he was

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Speaker 1: about to get higher. Didn't happen, and Glenn is now

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Speaker 1: said to be heading to New Orleans for a second

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Speaker 1: interview with the Saints. John Stashew with Bloomberg Sports Karen John.

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Speaker 12: Coast to coast on Bloomberg Radio, nationwide on Sirius Exam,

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Speaker 12: and around the world on Bloomberg dot Com and the

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Speaker 12: Bloomberg Business app.

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Speaker 7: This is Bloomberg Daybreak.

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Speaker 3: And we continue our coverage of the World Economic Forum

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Speaker 3: from Davos this morning. In a conversation with Bank of

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Speaker 3: America CEO Brian boynihan. He sat down with our Jonathan

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Speaker 3: Ferrell and Lisa Brammle with some Bloomberg surveil. It's discussing

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Speaker 3: how AI's impacting business a succession plan at the bank,

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Speaker 3: and they start with the outlook for deals in a

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Speaker 3: second Trump term. Let's listen in.

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Speaker 13: What you're hearing is enthusiasm for an investment banking side

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Speaker 13: of particularly transactions right for long time, for the last

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Speaker 13: couple of years, it's been hard to get a transaction through.

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Speaker 13: And what stops the seller from selling or buyer from

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Speaker 13: buying is this thing is delayed. I'm exposed and so

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Speaker 13: what they'll do is to push it through. So there's

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Speaker 13: a lot of enthusiasm that they'll be better growth United States,

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Speaker 13: a lot of enthusiasm by the bankers saying these deals

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Speaker 13: can get done, so I can go have this future conversation.

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Speaker 13: It's just not another idea that goes through the system

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Speaker 13: and everybody says that's a great idea, but it not

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Speaker 13: can be a great idea, let's go do it, or

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Speaker 13: a great idea, I don't want to do it. But

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Speaker 13: it's a more of a substance space than it is,

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Speaker 13: more of a worry about the environment around us.

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Speaker 12: Are you basically saying that there's more enthusiasm, that there

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Speaker 12: is conviction and will to actually get stuff done.

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Speaker 13: Yeah, I think you saw some deals getting announced and

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Speaker 13: you'll see more deals getting announced in our sector. In banking,

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Speaker 13: especially in the United States, the consolidation is still far

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Speaker 13: away from being.

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Speaker 7: Done.

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Speaker 13: They'll always be big banks or always be small banks,

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Speaker 13: but you'll let people make a decision what they want

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Speaker 13: to do.

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Speaker 7: And there haven't been a lot of bank deals done.

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Speaker 13: Bank to bank deals we can't do them, it's not legal,

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Speaker 13: but as investment banking, we can help other people do them,

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Speaker 13: and it haven't been a lot done because just uncertainly

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Speaker 13: you're getting caught in the transaction and having issues. So

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Speaker 13: the belief that they should promote the banks consoliding and

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Speaker 13: getting more efficient, passing that through the customers, passing it

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Speaker 13: through to small businesses, et cetera, is a different change.

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Speaker 12: Well, there's the banking sector specifically in some of the

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Speaker 12: deregulation and whether some of these mergers and consolidation will

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Speaker 12: be a lot, and then there's a broader corporate sector.

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Speaker 12: As some of the enthusiasm we've seen and we've heard

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Speaker 12: from the cities a head of banking.

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Speaker 7: From JP Morgan.

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Speaker 12: How much do you see that being maybe a little premature.

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Speaker 13: Well, I think you have to divorce a little bit

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Speaker 13: some of the fiscal work that has to be done,

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Speaker 13: and in coming Treasury Secretary and others have to take

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Speaker 13: very seriously this question of how do we manage the

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Speaker 13: revenue stream, the expense stream, and the amount of debt

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Speaker 13: and get.

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Speaker 7: It all to work out that.

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Speaker 13: One of the way is that that becomes easier if

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Speaker 13: you have more activity and more things going on. So

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Speaker 13: I think the enthusiasm you're here from the bankers is

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Speaker 13: more Structurally, the belief is that even starting yesterday, you

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Speaker 13: don't have you don't.

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Speaker 7: Have the constraint that you have, so you can go.

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Speaker 13: If there's more that enables more, that's good stuff, But

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Speaker 13: right now it'll stop it.

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Speaker 7: Going in our wrong direction. And look hard.

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Speaker 13: Medium small sized businesses, their biggest complaint was you're in

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Speaker 13: my pocket. You're slow me down. I can't get things done.

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Speaker 13: I want to permit to do something, it takes forever.

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Speaker 13: I want your labor rules. All this stuff was going

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Speaker 13: on and they're figuring out their own The same person's

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Speaker 13: running the business at nice sittingers say, so, what is

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Speaker 13: this new taxation strategy on? So security mean they're just

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Speaker 13: saying if you just stop, things will get better.

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Speaker 12: We keep hearing about succession plans in different places.

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Speaker 5: What's your succession plan?

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Speaker 7: But you're trying to throw me out.

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Speaker 13: No, no, not at all.

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Speaker 5: I'm just wondering because this is something.

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Speaker 4: That we.

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Speaker 13: Lost questions, the fascination with all this is interesting and

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Speaker 13: one just means we're all getting older.

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Speaker 7: So Therealty is we run. We run across in our

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Speaker 7: company through the top three layers, including for the CEO succession.

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Speaker 13: Every six months we go through everything who the media successors,

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Speaker 13: for every one of our teammates jobs, and we have

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Speaker 13: a slate and we go from a slip because if

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Speaker 13: we run a company, people leave for a whole, they retire,

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Speaker 13: they get another job, whatever, and you're always filling jobs.

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Speaker 13: And so with the way, the board will make a

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Speaker 13: choice at some point, I'm not going anywhere unless they

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Speaker 13: throw me out.

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Speaker 7: They know that.

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Speaker 13: But my job, and one of the biggest jobs I have,

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Speaker 13: is preparing people for the what it would be like

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Speaker 13: to run this company out there, and that's important. So

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Speaker 13: we do a lot with our team to get them

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Speaker 13: used to experiences and get them to learn more about

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Speaker 13: the trade offs you have to make at the top

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Speaker 13: of the house, because if you come through a business

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Speaker 13: or come through a function, you haven't made those trails.

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Speaker 7: That's part of our general strategy. And so we talked

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Speaker 7: to our board.

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Speaker 13: But you'll never hear us discuss A is in and

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Speaker 13: B is That to me, is the worst thing you

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Speaker 13: can do.

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Speaker 7: I went through that process in the end of two

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Speaker 7: thousand and nine. Whether the it's day to day speculation,

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Speaker 7: that's not the way to do it. Well, thank you

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Speaker 7: for that very much. You'll be the first person.

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Speaker 11: Okay, thank you.

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Speaker 12: I appreciate that we only have about thirty seconds. You

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Speaker 12: said something to us when we were at Bank of

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Speaker 12: America that AI would basically keep the staff the same

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Speaker 12: size but increase the footprint of business. Do you stand

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Speaker 12: by that?

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Speaker 13: Yeah, there are two facts I'll give you. One is

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Speaker 13: we run the company on the nominal amount of dollars

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Speaker 13: of expenses we did ten years ago almost now nominal

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Speaker 13: or not not inflation just and we run it on

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Speaker 13: thirty thousand less people. That is all digitization and AI

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Speaker 13: is an extension of automation.

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Speaker 7: Digitization models ET cetera.

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Speaker 13: Automating work, taking out work, and automated therefore you don't

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Speaker 13: need and I think it keeps going. The idea is,

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Speaker 13: if we're good, we'll keep adjusting where the.

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Speaker 7: Teammates end up.

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Speaker 13: So it might not be the same turn twelve thousand

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Speaker 13: people two hundred and thirteen thousand people doing the same

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Speaker 13: thing ten years from now. Yeah, but my guess is

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Speaker 13: that our employment levels will stay relatively Saturday.

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Speaker 7: Work towards stuff that can't be replicated near turn by air.

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