WEBVTT - January 13,2023

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<v Speaker 1>Live from the Bloomberg Interactive Brooker Studios. This is is Bloomberg

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<v Speaker 1>day Break for Friday, January thirteen. Coming up this hour,

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<v Speaker 1>potential legal repercussions for President Biden over his handling of

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<v Speaker 1>classified documents. Bank earnings kickoff with JP Morgan, City Group,

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<v Speaker 1>b of A and Lust Fargo recording bets on rate hikes,

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<v Speaker 1>slide as inflation cools, and Apple takes a bite out

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<v Speaker 1>of Tim Cook's pay. New York Mayor Adams warns of

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<v Speaker 1>migrant frost and is nearly one hundred three billion dollar budget.

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<v Speaker 1>Whilst the only child of Elvis Presley, Lisa Marie Presley,

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<v Speaker 1>has died. Michael barr more ahead, I'm John stash Our

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<v Speaker 1>sports the Nets playing without Kevin rand lost at home

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<v Speaker 1>to the Celtics. The loss for the Islanders a thrilling

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<v Speaker 1>overtime win for the Ranger. That's all s tradyhead on

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<v Speaker 1>Bloomberg Daybreak on Bloomberg eleven three, on New York, Bloomberg

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<v Speaker 1>nine one, Washington d C, Bloomberg one oh six one, Boston,

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<v Speaker 1>Bloomberg nine sixties and Francisco Sirius x M one nineteen

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<v Speaker 1>and around the world on Bloomberg Radio Dot com and

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<v Speaker 1>via the Bloomberg Business app. Good morning, I'm Nathan Hagart

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<v Speaker 1>and I'm Karin Moscow. Here are the stories we're following today.

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<v Speaker 1>We begin with a growing political and now legal issue

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<v Speaker 1>for President Biden. Attorney General Merrick Garland has named a

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<v Speaker 1>special counsel after two sets of classified documents were found

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<v Speaker 1>in one of the President's offices and now his garage.

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<v Speaker 1>President Biden says he has been cooperating fully. The Department

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<v Speaker 1>of Justice was immediately uh notified and the lawyers arranged

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<v Speaker 1>for the Department of Justice to take possession of the document.

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<v Speaker 1>So you're gonna see We're gonna see all this on fold.

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<v Speaker 1>The president says he takes classified documents seriously. New York

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<v Speaker 1>Law School professor Rebecca roy If he says, this puts

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<v Speaker 1>the president in a difficult position. None of this is

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<v Speaker 1>good and it should be troubling, and it should be

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<v Speaker 1>troubling to Americans, regardless of your political affiliation. No president,

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<v Speaker 1>no former vice president, should be taking classified documents and

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<v Speaker 1>putting in them someplace, keeping them someplace like a garage,

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<v Speaker 1>even if that garage is locked. New York Law schools

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<v Speaker 1>or Becca ROYFI spoke with our Washington, corresponded Joe Matthew

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<v Speaker 1>on Bloomberg Sound on. Catch the show weekdays at five

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<v Speaker 1>pm Eastern on Bloomberg Radio or download sound on wherever

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<v Speaker 1>you get your podcasts. Meantime, Nathan Geo politics is in

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<v Speaker 1>focus for President Biden today. He's meeting with Japanese Prime

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<v Speaker 1>Minister Fumio Kashita at the White House, Bloomberg said. Baxter

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<v Speaker 1>reports there is expected to be an update on the

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<v Speaker 1>nation's Global Security Agreement. Both sides have already said that

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<v Speaker 1>the alliance has never been stronger, but National Security Council

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<v Speaker 1>spokesman John Kirby says threats from Russia and China are

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<v Speaker 1>causing the agreements to be updated. We modernize the alliance

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<v Speaker 1>by announcing that attacks to from and within space could

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<v Speaker 1>lead to the invocation of Article five of the US

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<v Speaker 1>Japan Security Treaty. Kirby says Japan is stepping up its

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<v Speaker 1>commitments to the alliance and they will pay huge dividends.

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<v Speaker 1>In San France, Fisco, I'm at Baxter Bloomberg day Break,

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<v Speaker 1>Thanks said, We now turned to the markets or earnings

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<v Speaker 1>for big banks kickoff this morning. JP Morgan City Group,

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<v Speaker 1>Bank of America, and Wells Fargo all report quarterly results.

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<v Speaker 1>We get a preview from Bloomberg's Charlie Wells. There have

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<v Speaker 1>been so many pressures for these large American banks. There's

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<v Speaker 1>the concern about a potential recession that we've been debating

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<v Speaker 1>about for the past few weeks. There have been issues

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<v Speaker 1>with a slowdown and deal making that has really hurt fees.

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<v Speaker 1>It's looking like at some of these major banks, investment

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<v Speaker 1>banking revenue for the fourth quarter could be down about

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<v Speaker 1>fifty and overall profits at these large banks are looking

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<v Speaker 1>like in the fourth quarter they could be down about

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<v Speaker 1>fifteen percent. Bloomberg's Charlie Wells says the outlook from banks

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<v Speaker 1>C e O S may draw more attention this morning

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<v Speaker 1>than the actual numbers well as we await those results

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<v Speaker 1>in Nathan Global. Stocks are heading for a healthy game

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<v Speaker 1>this week, and there's growing optimism that easing inflation will

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<v Speaker 1>lead to less aggressive rate hikes. Here's Philadelphia Fed President

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<v Speaker 1>Patrick Harker. In my view, the base of us raising

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<v Speaker 1>them severy five supports of the time are surely cast.

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<v Speaker 1>In my view, types of twenty five basis points will

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<v Speaker 1>be appropriate going for Philadelphia Fed President Patrick Harker made

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<v Speaker 1>the comments after yesterday's consumer price data, which showed inflation

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<v Speaker 1>continued to slow in December, and we may get more

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<v Speaker 1>clues Karen on the direction of range forest rates and

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<v Speaker 1>a couple more FED officials speak today. New York FED

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<v Speaker 1>President John Williams, Minneapolis FED Chief Neil cash Carry, and

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<v Speaker 1>Philadelphia FED President Patrick Harker all speak at separate events today.

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<v Speaker 1>Moll in the UK, Nathan, the British economy unexpectedly grew

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<v Speaker 1>in November. Let's go live, delight did, and get the

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<v Speaker 1>latest with Bloomberg at Daybreak Europe anchor Stephen Carroll. Good

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<v Speaker 1>morning Stephen, Good morning kyral Than Nathan. The UK economy

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<v Speaker 1>may avoid tumbling intercession for a little longer thanks to

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<v Speaker 1>November's surprise point one percent growth in GDP consumer facing services,

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<v Speaker 1>helping to boost out button in particular spending on hospitality

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<v Speaker 1>during the World Cup strikes, though affected activity in the

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<v Speaker 1>postal and railway industries. The figures may strengthen calls for

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<v Speaker 1>further interest rate rise US from the Bank of England,

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<v Speaker 1>as inflation in the UK remains near the highest level

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<v Speaker 1>in four decades. In London, I'm Stephen Carroll, Bloomberg Daybreak, Stephen. Thanks.

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<v Speaker 1>Staying in Europe, Sweden's inflation rate reached double digits for

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<v Speaker 1>the first time in more than three decades. In December,

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<v Speaker 1>inflation there rose by an annual rate of ten point

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<v Speaker 1>two percent. That was higher than expected. Well back here

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<v Speaker 1>in the US, Nathan, we're seeing a big pay cut

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<v Speaker 1>for one of the country's premier executives. Apple CEO Tim

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<v Speaker 1>Cook will see his total compensation decline this year. We

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<v Speaker 1>get more from Bloomberg's Doug Krisner. Apple cited investor feedback

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<v Speaker 1>as well as a request from Cook himself. The pay

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<v Speaker 1>reduction will be more than this here, to forty nine

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<v Speaker 1>million dollars, and most of that will take the form

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<v Speaker 1>of stock grants. Apple is drawn criticism about Cook's previous

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<v Speaker 1>ninety nine million dollar compensation package from groups such as

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<v Speaker 1>Institutional Shareholder Services. The advisory firm said half of the

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<v Speaker 1>rewards didn't depend on performance criteria like the company's share price.

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<v Speaker 1>Last year, a majority of Apple holders voted to approve

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<v Speaker 1>Cooke's package. In New York, I'm Doug Prisoner Bloomberg Daybreak, Doug,

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<v Speaker 1>thank you. And in China today we have news that

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<v Speaker 1>government entities are set to take so called golden shares

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<v Speaker 1>and units of Ali, Baba and ten Cent. That suggests

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<v Speaker 1>Faijing is moving to ensure greater control over key players

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<v Speaker 1>in the internet arena. The shares could let officials influence

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<v Speaker 1>the industry over the long term. Straight ahead, your latest

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<v Speaker 1>local headlines, plus a check of sports. And this is Bloomberg.

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<v Speaker 1>Thanks Caring. It's fifty four degrees right now in Central Park.

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<v Speaker 1>We've got a cold front moving in this morning. We're

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<v Speaker 1>going to get into the upper fifties early today. Temperatures

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<v Speaker 1>will drop this afternoon under mostly cloudy sky. Time to

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<v Speaker 1>take a look at some of the other stories making

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<v Speaker 1>news in New York and around the world with Bloomberg's

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<v Speaker 1>Michael var Good morning, Michael, Good morning. Nathan. Lisa Marie Pressley,

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<v Speaker 1>a musician and the only daughter of rock and roll

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<v Speaker 1>legend Elvis Presley, died after being rushed to a Los

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<v Speaker 1>Angeles area hospital, believed to be of cardiac arrest. She

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<v Speaker 1>was married four times, including to Michael Jackson and Colas Cage.

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<v Speaker 1>It was just last week she was at Graceland to

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<v Speaker 1>celebrate what would have been her father's eight birthday. Then

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<v Speaker 1>I love you, I keep saying You're the only people

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<v Speaker 1>that can bring me out of my house. Lisa Marie

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<v Speaker 1>Pressley was fifty four. New York City Mayor Eric Adams

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<v Speaker 1>proposed a nearly one hundred three billion dollar budget for

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<v Speaker 1>this coming fiscal year. The mayor's projections call for a

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<v Speaker 1>three point two billion dollar gap in fiscal five billion

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<v Speaker 1>dollars in six and six point five billion in Adam

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<v Speaker 1>says though the city achieved much of its savings by

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<v Speaker 1>taking down vacant positions, we face significant challenges. I want

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<v Speaker 1>to be clear. In order to keep moving forward while

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<v Speaker 1>preserving the programs and services we value, we must be

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<v Speaker 1>careful and make the best use of our resources. Mayor

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<v Speaker 1>Adams also says the city is contending with a one

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<v Speaker 1>billion dollar anticipated cost for services provided this year to

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<v Speaker 1>recently arrived migrants. New Jersey Governor Phil Murphy said residents

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<v Speaker 1>can expect significant tax cuts, even after the state passed

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<v Speaker 1>a two billion dollar property tax rebate program last year. Murphy,

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<v Speaker 1>speaking to Bloomberg's David Weston on Balance of Power, also

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<v Speaker 1>talked about this week's Annual Policy Address, when he proposed

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<v Speaker 1>incentives to keep more workers, including employees who work from home,

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<v Speaker 1>in New Jersey. He says, it's an effort to cut

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<v Speaker 1>down the out of state income tax on workers who

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<v Speaker 1>commute to New York. Not every job is going to

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<v Speaker 1>be in a physical office. Uh, as long as the

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<v Speaker 1>job is in New Jersey, we want that job. Whether

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<v Speaker 1>it's I mentioned in my speech, whether it's in an

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<v Speaker 1>office tower or at Newark where I am now, or

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<v Speaker 1>at a kitchen table at Cherry Hill, we want those

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<v Speaker 1>jobs at Jersey. We want to embrace and recognize the

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<v Speaker 1>new reality, the governor says. In twenty more than four

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<v Speaker 1>thousand New Jersey residents paid taxes in New York. Powerful

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<v Speaker 1>storms are being blamed for at least seven deaths across

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<v Speaker 1>Georgia and Alabama. Global News twenty four hours a day

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<v Speaker 1>on air and on Bloomberg quick Take, powered by more

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<v Speaker 1>than twenty seven hundred journalists and analysts more than a

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<v Speaker 1>hundred twenty countries. Michael bar this is Bloomberg, Nathan. Thanks Michael,

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<v Speaker 1>time for the Bloomberg Sports update, brought to you by

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<v Speaker 1>twice stayed out here. Good morning, John, Good morning Nathan.

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<v Speaker 1>Nets and Celtics, top two teams on the East, both

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<v Speaker 1>were without all stars. No Kevin ran for Likely at

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<v Speaker 1>least a month knee injury of the night. After scoring

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<v Speaker 1>forty one points for Boston, Jalen Brown sat out injured hip.

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<v Speaker 1>Tight game at Barkley's until the Celtics began the fourth

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<v Speaker 1>quarter on a twelve to two run. They won one

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<v Speaker 1>oh improving to an NBA best thirty one and twelve.

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<v Speaker 1>Kymrae Ivan led the Nets twenty four points. For Ben

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<v Speaker 1>Simmons no points, but he did have nine rebounds and

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<v Speaker 1>thirteen assists. At the Garden, Rangers went fifty nine minutes

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<v Speaker 1>and fifty nine seconds without scoring. KeAndre Miller finally got

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<v Speaker 1>a Ranger goal with two ten of a second lad

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<v Speaker 1>and then Adam Fox got another a minute sixteen into overtime,

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<v Speaker 1>dramatic win for the Blue Shirts to one over Dallas.

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<v Speaker 1>Islanders lost in Minnesota three to one. Wild Card weekend

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<v Speaker 1>begins tomorrow with Seattle at San Francisco. The forty minors

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<v Speaker 1>have won their last ten games. Tomorrow night, it's much

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<v Speaker 1>improved Jacksonville hosting the l A Chargers. The Giants play

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<v Speaker 1>Sunday in Minnesota. Other than Graham Gano, who once kicked

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<v Speaker 1>in the Super Bowl, there is virtually no playoff experience

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<v Speaker 1>on the Giants roster, something downplayed by coach Brian day Ball. Think,

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<v Speaker 1>really what matters is taking advantage of your opportunities when

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<v Speaker 1>they come um and playing a good football game and

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<v Speaker 1>coaching a good football game. So I don't know if

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<v Speaker 1>that answers your question, but I really think it's an

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<v Speaker 1>overrated It's an overrated thing. And a couple of weeks,

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<v Speaker 1>if the a f C Championship game is between the

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<v Speaker 1>top two seeds Kansas City and Buffalo, the game will

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<v Speaker 1>be played in Atlanta. They had decided it would be

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<v Speaker 1>a neutral site because the Bills didn't finish that game

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<v Speaker 1>in Cincinnati that could have gained them the home field.

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<v Speaker 1>John Stash, Bloomberg Sports Nathan. Thanks John. The Bloomberg Sports

0:11:03.000 --> 0:11:05.080
<v Speaker 1>Report was brought to you by Audie. Don't let someone

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<v Speaker 1>of the President Biden's Classified Materials straight ahead first SMP

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<v Speaker 1>futures are little changed. Down futures up seventeen points, nastack

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<v Speaker 1>futures down fourteen points, Live from the Interactive Broker Studio,

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<v Speaker 1>broadcasting coast to coast, Bloomberg he leven Freeo, New York, Bloomberg, Washington,

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<v Speaker 1>Bloomberg one six one Boston, Bloomberg nine sixty, San Francisco,

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<v Speaker 1>Sirius XM one nineteen, the Bloomberg Business app and Bloomberg

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<v Speaker 1>dot Com. This is Bloomberg day Break. I'm Nathan Hagar.

0:11:49.679 --> 0:11:52.440
<v Speaker 1>Good morning. A political headache for President Biden is turning

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<v Speaker 1>into a legal one now with Attorney General Merrick Garland

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<v Speaker 1>appointing a special counsel to investigate classified documents found in

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<v Speaker 1>two local pations used by the President. This appointment underscores

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<v Speaker 1>for the public the Department's commitment to both independence and accountability,

0:12:09.000 --> 0:12:12.920
<v Speaker 1>and particularly sensitive matters. Attorney General Merrick Garland is named

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<v Speaker 1>Robert Herr, a former U S attorney appointed by former

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<v Speaker 1>President Donald Trump to lead the probe. Let's bring it,

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<v Speaker 1>Gregg Value are for war on this, Chief US policy

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<v Speaker 1>strategist at a GF Investments. Greg Good morning. Is this

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<v Speaker 1>just political or has it turned into something more for

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<v Speaker 1>the president now? I think it's something more, Nathan, good morning.

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<v Speaker 1>I think that a special council means that both Trump

0:12:35.480 --> 0:12:40.640
<v Speaker 1>and Biden are under criminal investigation, and for Republicans that

0:12:40.840 --> 0:12:44.120
<v Speaker 1>they'll claim there's an equivalence. I'm not sure that's accurate,

0:12:44.200 --> 0:12:47.480
<v Speaker 1>but they'll claim that, and it really has given the

0:12:47.880 --> 0:12:52.520
<v Speaker 1>Democrats in this city a case of real anxiety. Well,

0:12:52.520 --> 0:12:55.720
<v Speaker 1>what more do Democrats need to do in your estimation

0:12:55.960 --> 0:12:59.000
<v Speaker 1>to try to get ahead of this? Is there any

0:12:59.040 --> 0:13:01.440
<v Speaker 1>getting ahead of it at the point, I don't know.

0:13:01.679 --> 0:13:03.800
<v Speaker 1>And the reason you don't know is that you don't

0:13:03.800 --> 0:13:05.840
<v Speaker 1>know if there are more documents, if there are more

0:13:05.880 --> 0:13:09.800
<v Speaker 1>things that will surface over the next week or two.

0:13:09.920 --> 0:13:13.840
<v Speaker 1>Very very uncertain. I think the argument that well, everybody

0:13:13.880 --> 0:13:17.960
<v Speaker 1>does it is not or that what Biden has done

0:13:18.040 --> 0:13:20.480
<v Speaker 1>is not as serious as what Trump has done, that

0:13:20.559 --> 0:13:25.280
<v Speaker 1>doesn't really meet the standard of what this really means

0:13:25.320 --> 0:13:27.720
<v Speaker 1>for voters. And I think for a lot of voters

0:13:27.720 --> 0:13:30.320
<v Speaker 1>there's now going to be an equivalency that both of

0:13:30.360 --> 0:13:33.679
<v Speaker 1>them are attained it well. As you mentioned, though, Greg,

0:13:33.800 --> 0:13:36.720
<v Speaker 1>this is something that does seem to keep cropping up

0:13:36.720 --> 0:13:39.800
<v Speaker 1>in one way or another. You mentioned the investigation into

0:13:39.920 --> 0:13:43.320
<v Speaker 1>former President Trump's Mara Lago documents, and many of us

0:13:43.360 --> 0:13:47.960
<v Speaker 1>recalled the controversy surrounding former Secretary of State Hillary Clinton

0:13:48.040 --> 0:13:52.800
<v Speaker 1>and the classified materials found in her computer server. Why

0:13:52.920 --> 0:13:56.600
<v Speaker 1>does this keep cropping up? Does it say something about

0:13:56.640 --> 0:14:01.440
<v Speaker 1>the classification system in Washington? Could it be just sloppy

0:14:01.559 --> 0:14:05.320
<v Speaker 1>record keeping, lack of attention to details, a sense that

0:14:05.400 --> 0:14:09.640
<v Speaker 1>maybe the rules don't apply to people. Hard to say,

0:14:09.760 --> 0:14:12.440
<v Speaker 1>but it's going to stay out there. And for the

0:14:12.480 --> 0:14:16.680
<v Speaker 1>Republicans who had this cringe inducing spectacle a week ago

0:14:16.760 --> 0:14:19.560
<v Speaker 1>in the House, they get to change the subject and

0:14:19.600 --> 0:14:22.080
<v Speaker 1>they get to say that, well, Biden is under criminal

0:14:22.120 --> 0:14:26.360
<v Speaker 1>investigation as well. This is a game changer. What's your

0:14:26.400 --> 0:14:30.240
<v Speaker 1>reaction to the appointment of Robert Herr as the Special Council?

0:14:30.280 --> 0:14:33.640
<v Speaker 1>We mentioned a moment ago that he is a Trump appointee.

0:14:34.080 --> 0:14:36.360
<v Speaker 1>What what does he bring to the table. He's a

0:14:36.360 --> 0:14:39.800
<v Speaker 1>tough guy. He's going to be I think thorough. And

0:14:39.840 --> 0:14:42.400
<v Speaker 1>what Democrats worry about, at least the ones I talked

0:14:42.400 --> 0:14:46.560
<v Speaker 1>to yesterday, is that he could find more. Uh. Sometimes

0:14:46.560 --> 0:14:50.320
<v Speaker 1>the Special Council can can veer off, like the Whitewater

0:14:50.400 --> 0:14:56.160
<v Speaker 1>investigation veered off into Monica Lewinsky. So there's a possibility

0:14:56.200 --> 0:15:00.600
<v Speaker 1>that a special prosecutor could be a represent a Hinefield

0:15:00.840 --> 0:15:03.640
<v Speaker 1>for the Democrats, and we've been talking for the last

0:15:03.680 --> 0:15:06.400
<v Speaker 1>couple of days about the timing of the announcement as

0:15:06.440 --> 0:15:08.960
<v Speaker 1>well the fact that we found out about these classified

0:15:08.960 --> 0:15:12.480
<v Speaker 1>documents about two months after they were turned over back

0:15:12.520 --> 0:15:15.520
<v Speaker 1>to the National Archives. I wonder what this means about

0:15:15.600 --> 0:15:20.920
<v Speaker 1>the timing for a potential presidential re election announcement for

0:15:21.000 --> 0:15:23.440
<v Speaker 1>President Biden. It's something he's been mulling for a couple

0:15:23.480 --> 0:15:26.600
<v Speaker 1>of months. Here. Does this change the calculation for him?

0:15:26.640 --> 0:15:29.200
<v Speaker 1>Maybe a little. You've hit Nasan on, But I think

0:15:29.320 --> 0:15:31.680
<v Speaker 1>is the key issue here, and that is could this

0:15:31.760 --> 0:15:35.440
<v Speaker 1>affect the nomination process. There are a lot of Democrats

0:15:35.440 --> 0:15:38.880
<v Speaker 1>who are ready to run if Biden decides not to

0:15:38.960 --> 0:15:42.280
<v Speaker 1>seek re election, people like Phil Murphy and New Jersey

0:15:43.000 --> 0:15:47.080
<v Speaker 1>Gretchen Whitmer in Michigan. So a lot of Democrats are

0:15:47.160 --> 0:15:52.240
<v Speaker 1>concerned that even though inflation seemingly has peaked, even though

0:15:52.320 --> 0:15:55.440
<v Speaker 1>Biden's job approval rating is up a bit, that he

0:15:55.560 --> 0:15:58.680
<v Speaker 1>still has real problems and that there's still a lot

0:15:58.840 --> 0:16:03.240
<v Speaker 1>unknown in a special prosecutor. Over the next few weeks

0:16:03.640 --> 0:16:06.560
<v Speaker 1>and in our last minute here, Greg, presumably President Biden

0:16:06.640 --> 0:16:09.240
<v Speaker 1>is going to be trying to stay focused on his agenda.

0:16:09.280 --> 0:16:13.720
<v Speaker 1>He's meeting with global leaders today and later on next week.

0:16:13.800 --> 0:16:16.600
<v Speaker 1>But how much of a shadow does this cast over

0:16:16.640 --> 0:16:20.360
<v Speaker 1>the president's agenda going forward? Here? Well, you saw this yesterday, Nathan.

0:16:20.440 --> 0:16:22.600
<v Speaker 1>He came out and wanted to talk about a good

0:16:22.600 --> 0:16:26.040
<v Speaker 1>inflation number and the state of the economy, and reporters

0:16:26.080 --> 0:16:30.479
<v Speaker 1>basically shouted him down. They wanted to talk about these documents.

0:16:30.480 --> 0:16:34.440
<v Speaker 1>And I think that messaging for the Biden administration is

0:16:34.480 --> 0:16:39.120
<v Speaker 1>about to get a lot tougher. This is Bloomberg Daybreak Today,

0:16:39.240 --> 0:16:42.000
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<v Speaker 1>Hager and I'm Karen Moscow. Join us again tomorrow morning

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