WEBVTT - Government Shutdown Ends; New Iran Negotiations

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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 in Washington, where, after just four days,

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<v Speaker 3>the partial government shutdown is over. President Trump has signed

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<v Speaker 3>his deal with Senate Democrats to reopen the government with

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<v Speaker 3>less than two weeks of funding for the Department of

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<v Speaker 3>Homeland Security. That's to allow more time to negotiate on

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<v Speaker 3>democrats demands on new limits for immigration enforcement. President Trump

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<v Speaker 3>says the new law won't stop his immigration agenda.

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<v Speaker 4>It continues to fund deportation flights that are removing dangers

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<v Speaker 4>illegal aliens from our country. It continues historically successful efforts

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<v Speaker 4>to reduce crime in our nation's capital. We have a

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<v Speaker 4>very safe center right now.

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<v Speaker 3>That was President Trump at the Oval Office bill signing

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<v Speaker 3>herd live on Bloomberg Radio. Bloomberg's Eric Wasson reports lawmakers

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<v Speaker 3>now have just nine days to come to an agreement

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<v Speaker 3>done reining in ice agents.

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<v Speaker 5>Democrats have a long list of demands, including judicial warrens

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<v Speaker 5>and kicking masks off that Republicans are really not willing

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<v Speaker 5>to entertain, and it's just very hard. The House would

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<v Speaker 5>have to pass this very early next week for the

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<v Speaker 5>Senate in order to take it up and get it

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<v Speaker 5>done by February thirteenth. I don't see that happening, Bloomberg.

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<v Speaker 3>Eric Wanson reports if they don't reach a deal by

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<v Speaker 3>next Friday, FEMA and TSA employees could start to miss paychecks.

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<v Speaker 3>ICE and Border Patrol would continue to receive funds under

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<v Speaker 3>President Trump's One Big, Beautiful Tax and Spending Cut law.

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<v Speaker 2>We now turn to geopolitics. Nathan Bloomberg News has learned

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<v Speaker 2>Iran is asking the US to move diplomatic talks this

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<v Speaker 2>Friday from Turkey to Oman cursus A. Tehran wants the

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<v Speaker 2>talks to focus only on Around's nuclear activities and not

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<v Speaker 2>its support for proxy Milicious in the Middle East and

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<v Speaker 2>its ballistic missiles. President Trump has threatened to strike Iran

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<v Speaker 2>if it does not agree to a deal, which his

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<v Speaker 2>administration has signaled must include Iron's missiles and malicious support.

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<v Speaker 3>Back in Washington, Karen, the dates are set for Bill

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<v Speaker 3>and Hillary Clinton to testify about their ties to Jeffrey Epstein.

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<v Speaker 3>The House Oversight Committee says the former president will appear

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<v Speaker 3>before the panel on February twenty seventh, the former Secretary

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<v Speaker 3>of State will testify. The day before, February twenty sixth,

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<v Speaker 3>the full House had planned to hold a criminal contempt

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<v Speaker 3>vote against the Clintons if they continued to defy subpoenas.

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<v Speaker 3>President Trump commented on it in the Oval Office.

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<v Speaker 6>So that takes care of Epstein as far as Trump

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<v Speaker 6>is concerned. But you have a lot of Democrats out

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<v Speaker 6>there that are very much involved with Epstein. But I'll

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<v Speaker 6>be honest with you, You got to get back to running.

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<v Speaker 3>The country, President Trump, again, speaking in the Oval Office.

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<v Speaker 3>The Oversight Committee says the Clintons have agreed to appear

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<v Speaker 3>for transcribed filmed depositions behind closed doors. The Clinton's attorneys

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<v Speaker 3>say they want the hearings open to the public to

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<v Speaker 3>address their concerns about fairness.

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<v Speaker 2>We now turn to the markets, Nathan, where S and

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<v Speaker 2>P futures are little changed and gold is nearing fifty

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<v Speaker 2>one hundred dollars an hound see Yesterday techdocs fell led

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<v Speaker 2>by the recent sell off led by software stocks and

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<v Speaker 2>Bloomberg's John Tucker joins us with the latest John and Karen.

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<v Speaker 7>The theme that seems to have gripped investors is that

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<v Speaker 7>AI is going to be able to do much of

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<v Speaker 7>the stuff that software companies do, making their products far

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<v Speaker 7>less important. That was reinforced when the AI firm Anthropic

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<v Speaker 7>released an AI tool that does legal work. It looks

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<v Speaker 7>like a case is sell now and ask questions later.

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<v Speaker 7>Add to that the fact that investors are growing impatient

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<v Speaker 7>about returns for all that CAPEX spending. Anika Gupta is

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<v Speaker 7>at Wisdom Tree.

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<v Speaker 2>Given the fact that now we're seeing CAPEX intentions rise

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<v Speaker 2>sixty to eighty percent and the rising of very high levels,

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<v Speaker 2>we're now starting to see investors become a lot.

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<v Speaker 4>More discerning now.

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<v Speaker 7>In this environment, Microsoft has been crushed down close to

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<v Speaker 7>three percent yesterday, the software giant down close to twenty

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<v Speaker 7>five percent from October New York. I'm John Tucker, Bloomberg Radio, John.

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<v Speaker 3>Thanks, Big tech earnings continue today. When Alphabet reports this afternoon,

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<v Speaker 3>we get a preview from Bloomberg's Tom Busby.

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<v Speaker 8>Google's parent company. Alphabet expected to post solid revenue and

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<v Speaker 8>profit growth for last quarter, with its cloud computing division

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<v Speaker 8>expected to get a big boost from the release of

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<v Speaker 8>its latest Gemini AI models, which it also integrated into

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<v Speaker 8>its Google Search and its Chrome browser. Like rivals Meta

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<v Speaker 8>and Microsoft, A big focus for investors, though, is all

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<v Speaker 8>the spending it's done on AI infrastructure and efforts to

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<v Speaker 8>power its data centers. Bloomberg consensus calls for revenue of

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<v Speaker 8>one hundred eleven point four billion dollars on earnings per

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<v Speaker 8>share of two dollars sixty five cents. Tom buzby Bloomberg Radio.

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<v Speaker 2>All right, Tom, thank you well. Sticking with earning. Shares

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<v Speaker 2>of Advanced micro Devices down more than seven percent in

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<v Speaker 2>early trading. The chip makers are for top analyst estimates,

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<v Speaker 2>but its sales forecast underwhelmed investors. It's a sign that

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<v Speaker 2>AMD is not making the kind of AI inrows that

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<v Speaker 2>some investors anticipated.

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<v Speaker 3>Another chip maker is soaring in the pre market care,

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<v Speaker 3>and that's Silicon Labs. Those shares are up more than

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<v Speaker 3>thirty two percent. The Financial Times is reporting Silicon labses

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<v Speaker 3>and talks to me acquired by Texas Instruments for around

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<v Speaker 3>seven billion dollars.

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<v Speaker 2>Nathan Bloomberg News has learned Nvidia is nearing a deal

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<v Speaker 2>to invest twenty billion dollars in open Ai as part

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<v Speaker 2>of its latest funding round. It marks a chit maker's

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<v Speaker 2>single biggest investment in the chat GPT developer open Ai

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<v Speaker 2>is looking to raise up to one hundred billion dollars

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<v Speaker 2>in funding for a new round, with much of that

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<v Speaker 2>coming from large tech firms in Europe.

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<v Speaker 3>Parent's shares of Novo Nordisk are plunging more than seventeen percent.

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<v Speaker 3>The pharma giant's warning of a steep decline in sales

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<v Speaker 3>of its drugs. It says those sales will fall with

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<v Speaker 3>as much as thirteen percent. Novo blames increased competition and

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<v Speaker 3>lower prices for its blockbuster weight loss medicines, driven by

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<v Speaker 3>a US government push to bring down drug costs. We

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<v Speaker 3>spoke with Novo's CEO, Mike Doustar.

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<v Speaker 9>Of course, I can understand that negative numbers are not

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<v Speaker 9>good news to the market, but once again, this is

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<v Speaker 9>something that we had anticipated and the obesity market is

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<v Speaker 9>quite dynamic and the reason the range has its numbers

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<v Speaker 9>on each end and it is because so many things

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<v Speaker 9>can happen.

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<v Speaker 3>Novanordesk CEO Mike Deustar says this company will start a

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<v Speaker 3>new share buy backworth as much as two point four

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<v Speaker 3>billion dollars.

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<v Speaker 2>Nathan shares of UBS they are down almost five percent.

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<v Speaker 2>The Swiss Leander reported stronger than expected earnings and also

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<v Speaker 2>announced a three billion dollar share buyback, but client inflows

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<v Speaker 2>for its wealth management unit fell well short of expectations.

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<v Speaker 2>We spoke earlier, was CEO Sergio or Modi.

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<v Speaker 10>The investment bank is growing well in the areas where

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<v Speaker 10>we want to compete. Asset management is doing a good job,

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<v Speaker 10>and the Swiss business is also holding up well despite

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<v Speaker 10>the low rates or negative rates almost environment. And we're

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<v Speaker 10>making also good progress on the integration. Eighty five percent

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<v Speaker 10>of the Swiss clients of Credit Swiss had been migrated.

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<v Speaker 10>We are delivering on our capital returns, so I can

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<v Speaker 10>only be happy.

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<v Speaker 2>To be honest, ubs CEO Sergio or Modi says. The

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<v Speaker 2>bank broadly maintained its previously signaled financial targets.

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<v Speaker 3>For the U and a notable Central Bank move Karen

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<v Speaker 3>Federal Reserve Governor Stephen Myron is stepping down from his

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<v Speaker 3>post leading the White House's Council of Economic Advisors. Myron

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<v Speaker 3>had been on unpaid leave from his White House role

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<v Speaker 3>after President Trump nominated him to the FED Board in

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<v Speaker 3>September on a temporary basis to fill a vacated seat.

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<v Speaker 3>That drew criticism from Senate Democrats, who said Myron on

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<v Speaker 3>the FED undermined the Central Bank's credibility.

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<v Speaker 2>Time now for a look at some of the other

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<v Speaker 2>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 Michael Barr Michael,

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<v Speaker 2>Good Morning, Good Morning Karen.

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<v Speaker 11>And ongoing search continues for the eighty four year old

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<v Speaker 11>mother of Today's show host Savannah Guthrie. Nancy Guthrie was

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<v Speaker 11>reported missing in Pima County, Arizona Sunday. Investigators also found

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<v Speaker 11>evidence showing there was a nighttime kidnapping. Police now trying

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<v Speaker 11>to determine if alleged ransom notes are real. Pima County

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<v Speaker 11>Sheriff Chris Nano spoke to reporters.

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<v Speaker 8>You're asked if there was any ransom, and you didn't

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<v Speaker 8>say no.

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<v Speaker 12>You said, we're following all leads. Does that mean a

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<v Speaker 12>ransom has come in?

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<v Speaker 11>We are following all leads we have. That's all I

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<v Speaker 11>can tell you.

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<v Speaker 13>Get We've got hundreds of leads.

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<v Speaker 11>Sheriff Nano says, Nancy Guthrie relies on medication that she

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<v Speaker 11>has to take daily. The Trump administration has been sued again,

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<v Speaker 11>this time by the states of New York and New

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<v Speaker 11>Jersey over its cutoff of financing for the sixteen billion

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<v Speaker 11>dollar Gateway rail tunnel under the Hudson River, a day

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<v Speaker 11>after the public commission overseeing the project filed as suit.

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<v Speaker 11>The States allege in a complaint Tuesday that the suspension

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<v Speaker 11>of funds for the Hudson Tunnel project is a politically

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<v Speaker 11>motivated attempt to punish and coerce those with whom the

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<v Speaker 11>president disagrees. The NFL says there's no planned ice enforcement

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<v Speaker 11>at Super Bowl sixty in Santa Clara, California. NFL's chief

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<v Speaker 11>security officer Kathy Lanier the.

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<v Speaker 14>Federal presence here is consistent with past Super Bowls and

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<v Speaker 14>other sporting OF's, like what you will see around the

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<v Speaker 14>World Cup in the Olympics as well. There are no

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<v Speaker 14>planned ice or immigration enforcement operations that are scheduled around

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<v Speaker 14>the super Bowl or any of the Super Bowl related events.

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<v Speaker 11>NFL's chief security officer, Kathy Lanier. The mayor of San Jose,

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<v Speaker 11>next door to Santa Clara, says he too, has been

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<v Speaker 11>told by federal agencies there will be no immigration enforcement

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<v Speaker 11>that could disrupt Super Bowl events. A Doberman pincher named

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<v Speaker 11>Tenny won Best in Show in the one hundred and

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<v Speaker 11>fiftieth Westminster Kennel Club Dog Show last night. The four

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<v Speaker 11>year old beat out six other finalists at the show

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<v Speaker 11>at New York's Madison Square Garden. Global News twenty four

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<v Speaker 11>hours a day and whenever you want it with Bloomberg

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<v Speaker 11>News Now. Michael Barram, this is Bloomberg, Karen.

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<v Speaker 8>Thanks Michael.

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<v Speaker 2>Time now for our Bloomberg Sports update, and for that

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<v Speaker 2>you bring in John stashauerd Thanks Daring.

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<v Speaker 13>A bunch of trades ahead of tomorrow's NBA trade deadline.

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<v Speaker 13>James Harden goes from the LA Clippers to Cleveland for

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<v Speaker 13>Darius Garland. A swap of point guards. Veteran Jaron Jackson

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<v Speaker 13>goes from Memphis to Utah. He was with the Grizzlies

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<v Speaker 13>for eight years. Point guard Mike Conley moves from Minnesota

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<v Speaker 13>to Chicago, and center Nicolovich goes from Chicago to Boston.

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<v Speaker 13>US flag bearers at Friday's opening ceremonies will be Bob's Letter,

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<v Speaker 13>Frank del Duca, and speed skater Aaron Jackson. That's your

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<v Speaker 13>Bloomberg Sports update.

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<v Speaker 2>Stay with us. More from Bloomberg Day Break coming up

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<v Speaker 2>after this.

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<v Speaker 1>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 Out. This is Bloomberg Daybreak.

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<v Speaker 3>Good morning. I'm Nathan Hager. The partial government shutdown maybe

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<v Speaker 3>over at four days, but an even tougher fight remains

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<v Speaker 3>on Capitol Hill over funds from immigration enforcement. House Speaker

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<v Speaker 3>Mike Johnson says he's ready for it.

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<v Speaker 7>They say they want a real negotiation with President Trump

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<v Speaker 7>and Republicans over immigration enforcement policy, and we are happy

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<v Speaker 7>to have that debate.

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<v Speaker 3>And that was how Speaker Mike Johnson an on Capitol Hill.

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<v Speaker 3>For more, We're joined by Bloomberg DC Breaking News editor

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<v Speaker 3>Alexander Pearson. Alex how big a fight are lawmakers in

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<v Speaker 3>for now over the next nine days?

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<v Speaker 12>Good morning, Good morning, Nathan. Yeah, the fight is probably

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<v Speaker 12>going to be a very big one. The gap between

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<v Speaker 12>the Republicans and the White House on the one hand,

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<v Speaker 12>and Democrats on the other is still very large. So

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<v Speaker 12>despite the fact that they came to this agreement to

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<v Speaker 12>reopen parts of the government that were shut down, there

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<v Speaker 12>is only now nine days to come to an agreement

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<v Speaker 12>on restrictions that Democrats have demanded on immigration rewinforcement. The

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<v Speaker 12>problem is is that Republicans are not accepting many of

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<v Speaker 12>those demands. Those include things like no immigration officers, not

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<v Speaker 12>wearing masks, no identification, wearing identification, stopping roving operations in cities,

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<v Speaker 12>and for the most part, Republicans don't want to agree to

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<v Speaker 12>any of these. The Democrats are, for their part, say

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<v Speaker 12>that they are not going to accept anything that does

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<v Speaker 12>not meet some at least some of those demands. So

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<v Speaker 12>it's very likely that next week we could be seeing

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<v Speaker 12>another partial shutdown that would affect the Department of Homeland Security.

0:12:11.600 --> 0:12:15.440
<v Speaker 3>How would that partial shut down affect the Department of

0:12:15.440 --> 0:12:18.800
<v Speaker 3>Homeland Security specifically, because we understand that even if there

0:12:18.800 --> 0:12:22.080
<v Speaker 3>were a shutdown, ICE and Border Patroller are still funded

0:12:22.200 --> 0:12:24.000
<v Speaker 3>under the tax and spending cut law.

0:12:24.080 --> 0:12:28.000
<v Speaker 12>Right, Yeah, that's right, So there's unlikely to be any

0:12:28.240 --> 0:12:31.520
<v Speaker 12>major disruptions to IO border Patrol because of the funding

0:12:31.559 --> 0:12:35.520
<v Speaker 12>that was passed last year, those agency, those operations could

0:12:35.559 --> 0:12:39.440
<v Speaker 12>still tap into that funding for some time. What would

0:12:39.480 --> 0:12:43.560
<v Speaker 12>be affected very quickly would be TSA and also FEMA,

0:12:45.040 --> 0:12:48.840
<v Speaker 12>so people working in those services would miss a paycheck

0:12:49.400 --> 0:12:51.840
<v Speaker 12>after if there is no funding agreement by the end

0:12:51.880 --> 0:12:55.160
<v Speaker 12>of next week, and that of course could be quite disruptive,

0:12:55.200 --> 0:12:58.520
<v Speaker 12>particularly for anyone who's planning to travel to fly.

0:13:00.120 --> 0:13:03.600
<v Speaker 3>See some major news later on this month, when Bill

0:13:03.640 --> 0:13:07.040
<v Speaker 3>and Hillary Clinton testify about their Jeffrey Epstein ties to

0:13:07.080 --> 0:13:11.000
<v Speaker 3>the House Oversight Committee. A subpoena against a former president

0:13:11.080 --> 0:13:12.920
<v Speaker 3>is almost unheard of, Alex.

0:13:13.840 --> 0:13:16.760
<v Speaker 12>Yeah, that's rights. It has happened before, but it's an

0:13:16.800 --> 0:13:21.120
<v Speaker 12>extremely rare event. And you know, this is obviously going

0:13:21.120 --> 0:13:23.680
<v Speaker 12>to be a very high profile hearing. At the moment,

0:13:23.720 --> 0:13:26.280
<v Speaker 12>it is said to be behind closed doors. It will

0:13:26.320 --> 0:13:29.920
<v Speaker 12>be filmed and recorded, but they won't we won't see

0:13:29.920 --> 0:13:32.840
<v Speaker 12>it live. That of course could still change, but that's

0:13:32.880 --> 0:13:37.679
<v Speaker 12>how it's being done right now. And certainly, yeah, it's

0:13:37.760 --> 0:13:40.360
<v Speaker 12>it's a very significant event given that we've not seen

0:13:40.400 --> 0:13:44.640
<v Speaker 12>for many decades a former president testifying to a congressional committee.

0:13:44.720 --> 0:13:47.520
<v Speaker 3>Why the focus on the Clinton specifically by the House

0:13:47.559 --> 0:13:50.040
<v Speaker 3>Oversight Panel, as far as we understand.

0:13:51.200 --> 0:13:53.960
<v Speaker 12>The well, the focus is really their ties to Jeffrey Epstein.

0:13:54.720 --> 0:13:57.200
<v Speaker 12>Certainly we know from the files of were released by

0:13:57.240 --> 0:13:59.600
<v Speaker 12>the Department of Justice, and also prior to that that

0:13:59.640 --> 0:14:04.000
<v Speaker 12>there were close contacts between Bill Clinton and Epstein, you know,

0:14:04.320 --> 0:14:07.720
<v Speaker 12>in previous decades. For his part, the former president says

0:14:07.760 --> 0:14:10.040
<v Speaker 12>he was not aware of any crimes that Epstein committed,

0:14:10.520 --> 0:14:13.400
<v Speaker 12>and you know it was not involved in any wrongdoing,

0:14:13.760 --> 0:14:17.720
<v Speaker 12>but the House Oversight Committee will want to really check

0:14:17.800 --> 0:14:20.119
<v Speaker 12>what those ties were and how that might have affected

0:14:20.560 --> 0:14:25.840
<v Speaker 12>federal enforcement in terms of investigating Epstein and his ties

0:14:25.880 --> 0:14:27.440
<v Speaker 12>to various parts of the government.

0:14:29.480 --> 0:14:32.920
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