WEBVTT - Fire Scarred LA Braces for More Wind; DOJ Trump Election Case Report Released  

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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 well with the latest on the wildfires

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<v Speaker 3>in Los Angeles. The death toll remains at twenty four,

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<v Speaker 3>with at least three active fires still raging across the area.

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<v Speaker 3>Another round of dangerous weather is in the forecast today

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<v Speaker 3>for wind gusts as high as fifty miles an hour.

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<v Speaker 3>Los Angeles County Deputy Fire Chief Robert Harris says people

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<v Speaker 3>need to be ready.

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<v Speaker 4>Severe weather conditions will continue through Wednesday. Please be assured

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<v Speaker 4>that the Los Angeles County Fire Department is prepared and

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<v Speaker 4>we are anticipating winds and humidity and low moisture which

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<v Speaker 4>will be a threat to the Los Angeles County area.

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<v Speaker 3>Deputy Fire Chief Robert Harris says that threat extends north

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<v Speaker 3>to Ventura County as well. At the White House, President

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<v Speaker 3>Biden is looking ahead to the recovery.

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<v Speaker 5>To cover.

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<v Speaker 6>The costs over the next one hundred and eighty days

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<v Speaker 6>for making my firefront.

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<v Speaker 2>Overtime, pay you breath and rumal temporary shelters.

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<v Speaker 6>It's going to cost tens of billions of dollars.

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<v Speaker 3>The presidents spoke at a White House briefing. Wells Fargo

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<v Speaker 3>and Goldman Sachs estimate the insured losses alone could top

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<v Speaker 3>thirty billion dollars.

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<v Speaker 2>Meanwhile, Nathan officials are still looking into what could have

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<v Speaker 2>caused these fires. LA County Sheriff Robert Luna says they're

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<v Speaker 2>investigating whether power lines owned by Southern California Edison could

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<v Speaker 2>have sparked the Eton fire that's devastated Alta Dina, But

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<v Speaker 2>the CEO of Edison's parent company, Pedro Bizarro, tells Bloomberg,

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<v Speaker 2>there's no evidence to lines we're having any issues.

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<v Speaker 5>Typically, when you have a fire cost by electrical infrastructure,

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<v Speaker 5>you do see a signature of voltage dropping, current increasing.

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<v Speaker 6>We have not seen that in our study.

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<v Speaker 2>CEO Pedro Pizarro's Edison International is facing a lawsuit over

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<v Speaker 2>the Eton fire. Residents have also filed a lass against

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<v Speaker 2>the LA Department of Power and Water over limited water

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<v Speaker 2>supplies to fight the Palisades fire.

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<v Speaker 3>Well, Karen. Another developing story we're following this morning is

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<v Speaker 3>the release of part of Special Counsel Jack Smith's report.

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<v Speaker 3>He says President ELEC. Donald Trump could have been convicted

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<v Speaker 3>for trying to overturn the twenty twenty election. We get

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<v Speaker 3>the details from Bloomberg's Genis Cervetti.

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<v Speaker 5>The DOJ released Smith's one hundred thirty seven page report

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<v Speaker 5>after a week of legal wrangling over whether the document

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<v Speaker 5>could be made public. Trump's team had made emergency requests

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<v Speaker 5>to federal courts to block it from being released. Had

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<v Speaker 5>they succeeded, the new administration could have buried it for good.

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<v Speaker 5>The report details Trump's efforts to pressure Vice President Mike

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<v Speaker 5>Pence to reject congressional certification of the twenty twenty election,

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<v Speaker 5>including a deadly attack on the US Capitol on January sixth,

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<v Speaker 5>twenty twenty one. The report also highlights Trump's refusal to

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<v Speaker 5>help stop the riot and his continued support for those

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<v Speaker 5>who attacked the Capitol, which Smith sees as further evidence

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<v Speaker 5>of Trump's gill Trump and his allies have long railed

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<v Speaker 5>against Smith's investigation and findings, saying they represent a baseless

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<v Speaker 5>political attack. Gina Cervetti, Bloomberg Radio.

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<v Speaker 2>All right, Gina, thank you all. Turning now to the

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<v Speaker 2>Middle East, The Wall Street Journal reports this morning that

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<v Speaker 2>Israel and Hamas are finalizing terms on a ceasefire deal

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<v Speaker 2>that could be announced as soon as today. Both sides

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<v Speaker 2>are warning, however, that talks could still fall apart if

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<v Speaker 2>all those comments are in President elect Trump and President Biden,

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<v Speaker 2>who both say a pause and fighting could come before

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<v Speaker 2>inauguration day next week. US National Security Advisor Jake Sullivan

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<v Speaker 2>told Bloomberg he's also optimistic about a deal.

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<v Speaker 7>I think the pressure is building for Hamas to come

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<v Speaker 7>to yes. I think Israel also has achieved a huge

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<v Speaker 7>amount of its military objectives in Gaza, and therefore they

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<v Speaker 7>are in a position to be able to say yes.

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<v Speaker 7>So there is a distinct possibility that we can get

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<v Speaker 7>this deal done this week before President Biden leaves office.

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<v Speaker 2>And despite progress, US National Security Advisor Jake Sullivan still

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<v Speaker 2>urges caution about a possible sea fire. The proposed deal

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<v Speaker 2>would involve a forty two day truce with Hamas releasing

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<v Speaker 2>thirty three hostages in its first phase. According to senior

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<v Speaker 2>Israeli officials, Palestinian prisoners would be released from Israeli jails

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<v Speaker 2>and a buffer zone established in Gaza, with further negotiations

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<v Speaker 2>to follow.

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<v Speaker 3>Now Karen a Bloomberg News exclusive some of President elect

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<v Speaker 3>Donald Trump's economic team is considering a plan to gradually

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<v Speaker 3>increase trade tariffs. Sources say the discussions are looking at

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<v Speaker 3>ratcheting up levies by about two to five percent each month.

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<v Speaker 6>That we get more from Bloomberg's Critty Gupta, This.

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<v Speaker 8>Of course, is still a proposal that's being reported on.

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<v Speaker 8>It's not official yet, and it's also being proposed by

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<v Speaker 8>people who are not in power just yet, so there

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<v Speaker 8>are a lot of ifs and butts involved, But the

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<v Speaker 8>crux of the idea simply that it uses an act

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<v Speaker 8>that grants emergency powers to the president when declaring that

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<v Speaker 8>the country is in a national emergency.

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<v Speaker 3>Bloomberg's Pretty Gupta says Scott Bessen, Kevin Hassett, and Steven

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<v Speaker 3>Moran are working on the plan, but the gradual tariff

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<v Speaker 3>hike proposals in its early stages and has not yet

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<v Speaker 3>been presented to Trump. A spokesman for the transition team

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<v Speaker 3>referred to the president to likes previous public comments and

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<v Speaker 3>social media posts about tariffs.

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<v Speaker 5>Well.

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<v Speaker 2>Nathan Elon Musk will continue to have major access to

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<v Speaker 2>Donald Trump when he takes office. The New York Times

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<v Speaker 2>is reporting Musk is expected to use office space adjacent

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<v Speaker 2>to the White House as he launches the Department of

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<v Speaker 2>Government Efficiency. Musk owns companies with billions of dollars in

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<v Speaker 2>contracts with the federal government.

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<v Speaker 3>And could the world's richest person be in line for

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<v Speaker 3>another business Karen Bloomberg News has learned Chinese officials are

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<v Speaker 3>evaluating the possible sale of TikTok's US operations to Musk.

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<v Speaker 3>We are told it is one option being explored if

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<v Speaker 3>TikTok fails to fend off a US ban or from

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<v Speaker 3>Bloomberg's Annabelle Drulers, this is a.

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<v Speaker 9>Potential deal that possibly does hold some appeal for the

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<v Speaker 9>Chinese government, which does of course have say over whether

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<v Speaker 9>TikTok is ultimately sold. The deal value of this I

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<v Speaker 9>mean Bloomberg intelligence. Again, it's very difficult to say, but

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<v Speaker 9>last year they were saying TikTok's the US operations could

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<v Speaker 9>be worth something to magnitude of forty to fifty billion dollars.

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<v Speaker 9>And it's also not sure what sort of structure the

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<v Speaker 9>deal could take either, but it would certainly be a

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<v Speaker 9>very complex process.

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<v Speaker 6>It's Bloomberg's anabel Droolers.

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<v Speaker 3>Last week, the Supreme Court signal that is likely to

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<v Speaker 3>uphold the law that would ban the app in the

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<v Speaker 3>US on national security grounds.

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<v Speaker 2>Well, we turned to the markets now, Nathan, and futures

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<v Speaker 2>are higher following yesterday's later turnaround on Wall Street. Today's

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<v Speaker 2>trading could be impacted by the first of this week's.

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<v Speaker 6>Key inflation reports.

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<v Speaker 2>We get a preview of the Producer Price Index with

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<v Speaker 2>Bloomberg's Michael McKee.

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<v Speaker 10>Economists see further proof coming that disinflation has paused, if

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<v Speaker 10>not ended, Rising monthly prices will be in significant jumps

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<v Speaker 10>on an annual basis, something which might scare already nervous investors.

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<v Speaker 10>While the PPI doesn't directly correlate to Wednesday's consumer price report,

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<v Speaker 10>several of its components feed into the Fed's preferred inflation indicator,

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<v Speaker 10>the PCE index. Bloomberg Economics sees portfolio management and airfares

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<v Speaker 10>continuing to drift higher. All healthcare gains are muted ahead

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<v Speaker 10>of January's cost resets. Michael McKee, Bloomberg Radio.

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<v Speaker 2>And it's time now for look at some of the

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<v Speaker 2>other stories making news in New York and around the world.

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<v Speaker 2>And for that we're joined by Bloomberg's John Tucker.

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<v Speaker 11>John, Good Morning, Good Morning, Karen, New York city's first

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<v Speaker 11>in the nation, congestion pricing appears to be working. Let's

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<v Speaker 11>get the story this morning from Bloomberg Jeff Bellinger.

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<v Speaker 12>Traffic on New York's busiest streets dropped by seven and

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<v Speaker 12>a half percent, and morning travel times fell on most

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<v Speaker 12>major crossings into Manhattan during the first work week of

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<v Speaker 12>the city's congestion pricing plan. The preliminary data from the

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<v Speaker 12>Metropolitan Transportation Authority is the first glimpse into how the

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<v Speaker 12>new charge is impacting commuting patterns. The early data follows

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<v Speaker 12>a week of social media postings and reports of residents

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<v Speaker 12>and drivers enjoying easier flowing traffic, and average five hundred

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<v Speaker 12>and thirty nine thousand vehicles drove into the toll zone

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<v Speaker 12>each day during the first work week of the program.

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<v Speaker 12>That's about forty three thousand fewer than before congestion pricing began.

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<v Speaker 12>Jeff Bellinger, Bloomberg Radio.

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<v Speaker 11>President Biden touted his foreign policy accomplishments and a speech

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<v Speaker 11>aimed at burnishing his luncacy before he departs office next week.

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<v Speaker 3>BI administration is leaving the next administration with a very

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<v Speaker 3>strong hand to play in America.

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<v Speaker 12>More friends, strong reliance, xavasars are weaker and under pressure.

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<v Speaker 11>Biden also reflecting on the competition with China, saying we

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<v Speaker 11>expect China and everyone to abide by the international rules.

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<v Speaker 11>Special Counsel David Weiss got the last word leading the

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<v Speaker 11>investigation into Hunter Biden and the President's decision to part

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<v Speaker 11>in his son. Weiss's final report was released yesterday. The

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<v Speaker 11>President said the Hunter was treated differently and single out

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<v Speaker 11>because he is his son. Weiss fired back, saying those

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<v Speaker 11>baseless accusations have no merit and rescuers were sending a

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<v Speaker 11>cage like structure into one of South Africa's deepest minds. Today,

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<v Speaker 11>it's an attempt to bring out survivors among hundreds. If

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<v Speaker 11>illegal mind trapped underground four months in an abandoned shaft,

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<v Speaker 11>more than one hundred or believed to have died of

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<v Speaker 11>starvation or dehydration. Global News twenty four hours a day.

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<v Speaker 11>Whatever he wanted, we have Bloomberg News.

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<v Speaker 2>Now.

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<v Speaker 11>I'm John Tucker, and this is Bloomberg.

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<v Speaker 6>Karen, Right, John Tucker, thank you.

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<v Speaker 2>Time now for the Bloomberg Sports up Day, brought to

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<v Speaker 2>you by Tri State Outing.

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<v Speaker 6>Here's John Stanshawer. John, Good morning, Good morning, Karen.

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<v Speaker 13>Sports is back in Los Angeles first time since the

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<v Speaker 13>fires broke out home games last night for the Lakers,

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<v Speaker 13>who lost and the Clippers, who won, and the Rams

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<v Speaker 13>had their playoff game of the Vikings. It was moved

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<v Speaker 13>out of LA into Phoenix, and the Rams won with

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<v Speaker 13>surprising ease against the Minnesota team that went fourteen and

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<v Speaker 13>three in the regular season. LA up twenty four to

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<v Speaker 13>three at half time, went on to win twenty seven

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<v Speaker 13>to nine a dominant defensive effort. They sacked Sam Darnold

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<v Speaker 13>nine times, he threw an interception, he had a fumble

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<v Speaker 13>that was returned for a Rams touchdown. Matthew Stafford threw

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<v Speaker 13>for two TVs, then talked about the extra meaning of

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<v Speaker 13>the victory.

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<v Speaker 6>We know what we're playing today, you know, was it

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<v Speaker 6>was go get the swim A man of swept people.

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<v Speaker 14>Los Angeles struggling right now.

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<v Speaker 7>It's been unbelieable to watch the gold community, you know,

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<v Speaker 7>the state, the country kind of get behind him.

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<v Speaker 6>It's it's a tough time to be back there. And uh, we're.

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<v Speaker 7>Just happy that we came out and played like this

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<v Speaker 7>Tonight's that gets, you know, something.

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<v Speaker 6>To be happy about.

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<v Speaker 13>Rams will now play Sunday afternoon in Philadelphia. This contract expired,

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<v Speaker 13>the Dallas Cowboys cut ties with coach Mike McCarthy. Dallas

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<v Speaker 13>just went through an injury ravage seven and ten season.

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<v Speaker 13>They won twelve games each of the previous three. McCarthy's

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<v Speaker 13>now free to pursue other jobs. Cowboys had previously prevented

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<v Speaker 13>him from an interview with the Bears. Meanwhile, ESPN reported

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<v Speaker 13>last night Cowboys owner Jerry Jones has already spoken with

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<v Speaker 13>Colorado coach Eon Sanders. At the guard much improved Pistons

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<v Speaker 13>beat the Knicks one twenty four to one nineteen. Led

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<v Speaker 13>by Cade cunning Ham. He scored thirty six points, Jalen

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<v Speaker 13>Brunts and led the Knicks with thirty one At the

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<v Speaker 13>Australian Open first round straight said victories for Americans Taylor Fritz,

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<v Speaker 13>Ben Shelton, Emma Navarro.

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<v Speaker 6>And Madison Keats. John Stanshy that we're a Bloomberg Sports.

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<v Speaker 1>Kennonnythan coast to coast on Bloomberg Radio, nationwide on Sirius XM,

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<v Speaker 1>and around the world on Bloomberg dot Com and the

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<v Speaker 1>Bloomberg Business app. This is Bloomberg Daybreak.

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<v Speaker 6>Good morning.

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<v Speaker 3>I'm Nathan Hager on another very challenging day in store

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<v Speaker 3>for the Los Angeles area after now a week of

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<v Speaker 3>deadly wildfires, more punishing winds or in the forecast today,

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<v Speaker 3>but Los Angeles County Fire Captain Sheila Kelleher says they're

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<v Speaker 3>as ready as there going to be.

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<v Speaker 10>We have cruiseworthy belong everybody's in place, everybody knows the mission,

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<v Speaker 10>everybody knows a game plan because when the winds start blowing,

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<v Speaker 10>we will have our hands full.

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<v Speaker 6>But we are ready for what's coming our way and

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<v Speaker 6>from more.

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<v Speaker 3>We are joined this morning by Bloomberg's Derek Wallbank. Derek,

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<v Speaker 3>good morning, Let's talk about what is coming their way

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<v Speaker 3>up to fifty mile an hour wind gusts and continued

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<v Speaker 3>dangerous conditions.

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<v Speaker 6>Good morning, Good morning.

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<v Speaker 14>Yeah, that's exactly right. You know, you're talking about some

0:11:54.600 --> 0:11:57.760
<v Speaker 14>conditions here that are going to mirror over the next

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<v Speaker 14>little while the conditions that were in place at the

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<v Speaker 14>start of the Palisades fire. This has a lot of

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<v Speaker 14>people officials in the area on edge, and that's that's

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<v Speaker 14>going to be the situation that we're facing for the

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<v Speaker 14>next little while. As I say, at the same time,

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<v Speaker 14>you know, we're getting accounts of exactly how much this

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<v Speaker 14>is going to cost. The estimates keep going up. Acueathers

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<v Speaker 14>overall estimate toll now somewhere around two hundred and fifty

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<v Speaker 14>billion dollars billion, with a B dollars the insured losses

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<v Speaker 14>on this. I've now seen two estimates that put that

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<v Speaker 14>around the thirty billion dollar mark. That's that's continuing to

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<v Speaker 14>rise as well. And you know that's just sort of

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<v Speaker 14>Nathan where we stand right now. The more that you

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<v Speaker 14>have fire conditions like this that prevent these from getting

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<v Speaker 14>put out, that maybe put new ones in new areas,

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<v Speaker 14>the more those totals may rise.

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<v Speaker 3>And when you think, Derek about the human total in

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<v Speaker 3>the economic toll, you have to wonder what the overall

0:13:02.920 --> 0:13:05.600
<v Speaker 3>knock on effect on the US economy is going to

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<v Speaker 3>take from these fires.

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<v Speaker 14>Yeah, and you know, we saw we saw one one

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<v Speaker 14>estimate that said that you could have a small effect

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<v Speaker 14>on the on the jobless rate, that is, that is

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<v Speaker 14>certainly something that's in play. You also could have a

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<v Speaker 14>somewhat smaller effect on overall GDP. I think the main

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<v Speaker 14>thing is that you have a little bit of a

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<v Speaker 14>sectoral concentration. Right. We've written extensively. My colleague Lucashow particularly

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<v Speaker 14>he has written extensive, extensively about the effects on the

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<v Speaker 14>entertainment industry. Uh uh, you know, productions are generally shut

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<v Speaker 14>down in the LA area even if it's not fire effected.

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<v Speaker 14>You know, you're not necessarily getting the permits. Well, you know,

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<v Speaker 14>if you need police or something else to be at

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<v Speaker 14>your production, how are you going to go do that?

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<v Speaker 14>So there's going to be some of those I mentioned. Insurers,

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<v Speaker 14>particularly home insurers, are potentially exposed there, So there will

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<v Speaker 14>be some sectors that are particularly gravely hit. And then

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<v Speaker 14>that all raises the question, does it not of what

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<v Speaker 14>the federal response is going to be in terms of reimbursing. Right,

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<v Speaker 14>you know, President Joe Biden has talked about a potential

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<v Speaker 14>federal bill for this in the tens of billions of dollars.

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<v Speaker 14>And at the same time, we're hearing Republicans start to

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<v Speaker 14>talk about the word offsets. Remember, there's going to be

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<v Speaker 14>universal Republican control of Congress in the not too dissidant future,

0:14:36.720 --> 0:14:38.800
<v Speaker 14>Congress and the White House in the not too distant future.

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<v Speaker 14>They already have universal control of Congress. So that's going

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<v Speaker 14>to be a really keen question that we're going to

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<v Speaker 14>have to look at going.

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<v Speaker 3>Forward as we continue to ask those questions and monitor

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<v Speaker 3>the wildfire situation. We got the report dropped overnight from

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<v Speaker 3>the Justice Department Special Counsel Jack Smith's investigation into twenty

0:14:57.280 --> 0:15:00.440
<v Speaker 3>twenty election interference. How much of an impact could this

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<v Speaker 3>have now with less than a week to go before

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<v Speaker 3>President elect Trump becomes president?

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<v Speaker 6>Trump again got about a minute.

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<v Speaker 14>Well, Nathan, I don't think that it's going to prevent

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<v Speaker 14>Trump from becoming president, right, And I think that a

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<v Speaker 14>lot of this stuff this report. Our listeners will have

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<v Speaker 14>a chance to read this as they wake up and

0:15:19.200 --> 0:15:22.840
<v Speaker 14>they get into work. They will find a very compelling

0:15:22.880 --> 0:15:26.240
<v Speaker 14>and detailed tale of what Trump was doing in and

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<v Speaker 14>around those events at the Capitol of January sixth, and

0:15:29.880 --> 0:15:33.520
<v Speaker 14>his efforts to try and to reverse the results of

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<v Speaker 14>the election. Those have already been well litigated. I think

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<v Speaker 14>the American public was very well aware of all of that.

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<v Speaker 14>It factored into people's votes where they thought it ought to,

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<v Speaker 14>and Trump was elected. Anyway. Trump is walking in here,

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<v Speaker 14>as they say, into a situation with universal Republicans control.

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<v Speaker 2>This is Bloombery Daybreak, your Morning podcast and the stories

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<v Speaker 6>And I'm Nathan Hager.

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<v Speaker 3>Join us again tomorrow morning for all the news you

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<v Speaker 3>need to start your day right here on Bloomberg Day

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<v Speaker 3>Ray