WEBVTT - US Mulling China Tariffs; Apple Smartwatch Deadline

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<v Speaker 1>Good morning.

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<v Speaker 2>I'm Nathan Hager and I'm Karen Moscow. Here are the

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

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<v Speaker 1>Karen, the rise in futures follows yesterday's selloff on Wall Street.

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<v Speaker 1>All three major indexes fell at least one and a

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<v Speaker 1>quarter percent. Risk assets took a breather after this month's

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<v Speaker 1>rally saw global stocks climb to their highest level of

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<v Speaker 1>the year. Alan Zapfron is a founding partner in co

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<v Speaker 1>CEO at IEQ Capital.

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<v Speaker 3>The market's probably a little bit ahead of itself with

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<v Speaker 3>full anticipation rate hikes are over cuts are coming, but

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<v Speaker 3>there's probably a bit too much near term enthusiasm. Albeit

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<v Speaker 3>the long term constructive view on the American economy. Rates

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<v Speaker 3>the same equities are part of a well diversified portfolio,

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<v Speaker 3>and you can't deny that you still need to have

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<v Speaker 3>some equity exposure.

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<v Speaker 1>I EQ Capitals. Alan Zaffren says overbought conditions also contributed

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<v Speaker 1>to yesterday selling well.

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<v Speaker 2>Nathan helping give a lift to equities this morning, as

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<v Speaker 2>Micron Technology shares are up about six percent after the

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<v Speaker 2>company gave a strong revenue forecast for the current period.

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<v Speaker 2>We get the story from Bloomberg's Charley Pellet.

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<v Speaker 4>Micron is the largest American maker of memory semiconductors, and

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<v Speaker 4>the quarter indicates that data center demand is helping make

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<v Speaker 4>up for a slowly recovering market for PCs and smartphones.

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<v Speaker 4>Micron said fiscal second quarter revenue will be five point

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<v Speaker 4>one to five point five billion dollars. Now that compares

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<v Speaker 4>with an average analysestimate of four point nine to nine billion.

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<v Speaker 4>The outlook signals that Micron is through the worst of

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<v Speaker 4>an industry wide slump, a moving back toward profitability in

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<v Speaker 4>New York, Charlie Pellett Bloomberg Radio.

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<v Speaker 1>All right, Charlie, thank you, and other high tech companies

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<v Speaker 1>in the spotlight.

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<v Speaker 5>Today is the day.

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<v Speaker 1>Apple plans to pull Series nine and Ultra two models

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<v Speaker 1>of its flagship smart watch from its online store. Apple

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<v Speaker 1>will also pull the watches from its physical retail locations

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<v Speaker 1>on Christmas Eve. This is because of a patent dispute

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<v Speaker 1>over technology that measures the amount of oxygen in a

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<v Speaker 1>user's blood.

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<v Speaker 2>Nathan. The US is reportedly considering raising tariffs on Chinese

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<v Speaker 2>electric cars. Bloomberg's Amy Morris has the details from Washington.

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<v Speaker 6>The Biden administration has for the most part left the

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<v Speaker 6>trompera tariffs in place on about three hundred billion dollars

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<v Speaker 6>of Chinese goods. Now, the White House is considering more

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<v Speaker 6>levies on evs and solar products. The Wall Street Journal

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<v Speaker 6>reports the US wants to limit reliance on China, which

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<v Speaker 6>has become a global powerhouse in electric cars, while shielding

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<v Speaker 6>its own green industry. A bipartisan group of lawmakers earlier

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<v Speaker 6>this month recommended raising tariffs on goods from China and

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<v Speaker 6>restricting investment in the country. China says raising tariffs would

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<v Speaker 6>undermine the security of the global supply chain. In Washington,

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<v Speaker 6>Amy Morris Bloomberg Radio.

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<v Speaker 1>All right, Amy, thank you. Now let's get to the

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<v Speaker 1>latest from the Middle East. The US continues to urge

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<v Speaker 1>Israel to move its war with Hummas from a large

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<v Speaker 1>scale assault to a more targeted operation in Gaza, but

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<v Speaker 1>Secretary of State Antony Blincoln says there's been too much

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<v Speaker 1>focus on calls for just Israel to end the war.

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<v Speaker 7>There seems to be silence on what Humas could do,

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<v Speaker 7>should do, must do if we want to, and the

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<v Speaker 7>suffering of innocent men, women and children. It would be

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<v Speaker 7>I think good if the world could unite around that

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<v Speaker 7>proposition as well.

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<v Speaker 1>The Secretary Blinken spoke as Israel's military says it's uncovered

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<v Speaker 1>a major Hamas command center in the heart of Gaza City.

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<v Speaker 1>The top Hamas leader is in Egypt for talks on

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<v Speaker 1>a new ceasefire and hostage prisoner exchanges with Israel.

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<v Speaker 2>Well Nathan Yemen's Houthi rebels say they will continue targeting

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<v Speaker 2>ships in the Red Sea, despite US moves to build

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<v Speaker 2>an international naval task force to protect trade in the region.

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<v Speaker 2>The Iran backed group also warrant it's willing to retaliate

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<v Speaker 2>at the US attack who the bases, signaling possible for

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<v Speaker 2>their escalation. Senior White House Advisor for Energy and Investment

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<v Speaker 2>Almos Hakstein says the BODI and administration is focused on

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<v Speaker 2>defensive action.

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<v Speaker 8>The United States has joined now in a coalition of

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<v Speaker 8>approximately ten countries already in making sure that there are patrols, surveillance,

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<v Speaker 8>patrols of aircraft and ships, and to take defensive measures

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<v Speaker 8>if needed. We continue to have other conversations with allies

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<v Speaker 8>to ensure that we have a coalition, and reason for

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<v Speaker 8>that is because this is not a US concern, this

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<v Speaker 8>is a global markets concern.

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<v Speaker 2>And Almos Hakstein spoke to Bloomberg after the US and

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<v Speaker 2>UK Navy shot down fifteen drones launch from who decontrolled

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<v Speaker 2>areas of Yemen over the weekend.

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<v Speaker 1>Back home, on the political front, Caaren Donald Trump's legal

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<v Speaker 1>team is urging the Supreme Court to hold off on

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<v Speaker 1>intervening in his election obstruction case. We get that story

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<v Speaker 1>from Bloomberg's Ed Baxter.

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<v Speaker 5>This is the case brought by Special counsel Jack Smith,

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<v Speaker 5>saying Trump conspire to overturn the twenty twenty election. Smith

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<v Speaker 5>requested the consideration of Trump's immunity claim, seeking to ensure

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<v Speaker 5>the trial can start on March fourth. Trump's lawyers are

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<v Speaker 5>arguing there has not been identification of a compelling reason

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<v Speaker 5>for the quote's extraordinary haste he proposes. Trump has long

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<v Speaker 5>said he wants the cases put off until after the

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<v Speaker 5>twenty twenty four election. This is the first Trump criminal

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<v Speaker 5>case to hit the Supreme Court, and the court could

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<v Speaker 5>rule as early as this week whether it will hear it.

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<v Speaker 5>Ad Baxter Bloomberg Radio, All.

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<v Speaker 2>Right, Ed, thank you, Let's turn to some company news.

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<v Speaker 2>Toyota Motor is recalling about one million vehicles sold in

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<v Speaker 2>the US that are at risk of having passenger side

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<v Speaker 2>airbags failed to deploy properly due to a passenger seat

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<v Speaker 2>sensor issue. They affect some Toyota and Lexus brand Sedan's.

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<v Speaker 2>Toyota also said subsidiary Daihatsu Motors offices were rated over

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<v Speaker 2>a safety scandal, and Toyota shares dropped four percent in Asia.

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<v Speaker 1>And Karen, A mega media deal maybe in the works.

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<v Speaker 1>Bloomberg News has learned Warner Brothers Discoveries held talks on

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<v Speaker 1>a possible merger with Paramount Global. A combination would unite

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<v Speaker 1>the Paramount and Warner Brothers film and TV studios and

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<v Speaker 1>put a number of PayTV and broadcast stations, including HBO

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<v Speaker 1>and CBS, under a single roof. This is Bloomberg, all.

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<v Speaker 2>Right, Nathan, Thanks time now for a look at some

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<v Speaker 2>of the other stories making news around the world, and

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<v Speaker 2>for that we're joined by Bloomberg's Amy Morris.

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<v Speaker 6>Amy, Good morning, Good morning, Karen. All ten Americans who

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<v Speaker 6>were detained in Venezuela and exchanged in a prisoner swap

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<v Speaker 6>are now back on US soil. Ambassador Roger Carstons flew

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<v Speaker 6>with some of the freed Americans from Venezuela to Texas.

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<v Speaker 8>There were so Obviously the rumors that things might be happening,

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<v Speaker 8>but I think it wasn't real until someone came to

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<v Speaker 8>their cell this morning and said, you follow me.

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<v Speaker 6>Six of the Americans landed at Joint Base San Antonio

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<v Speaker 6>last night. They'll be evaluated at the Brooke Army Medical Center.

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<v Speaker 6>If next year's presidential election comes down to President Biden

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<v Speaker 6>and former President Trump, a new poll indicates Americans are divided, Bloomberg.

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<v Speaker 6>Scott car explains.

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<v Speaker 9>Quinnipiac poll Wednesday showed in a head to head matchup,

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<v Speaker 9>forty seven percent of respondents supported President Biden, while forty

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<v Speaker 9>six percent supported Donald Trump. Polster for the College Tim

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<v Speaker 9>molloy says that's a statistical tie. But in a three

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<v Speaker 9>way race with third party candidate Robert F. Kennedy Junior,

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<v Speaker 9>Biden's support fell to thirty eight percent, Trump's to thirty

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<v Speaker 9>six percent, as Kennedy Junior drew twenty two percent, pulling

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<v Speaker 9>from the support base of both Biden and Trump.

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<v Speaker 7>Any of the pulling gun has shown that America is

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<v Speaker 7>like another alternative to Biden and Trump.

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<v Speaker 10>He maybe he may not be, but he's showing up

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<v Speaker 10>with a good number.

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<v Speaker 9>Scott Carr, Bloomberg radio.

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<v Speaker 6>In Boston, Mayor Michelle Wu has officially acknowledged and apologized

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<v Speaker 6>for the harm caused to the black community decades ago

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<v Speaker 6>when a man told police that his wife had been

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<v Speaker 6>shot by a black man, but it turned out he

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<v Speaker 6>had orchestrated the killing himself. Alan Swanson and Willie Bennett

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<v Speaker 6>were wrongfully arrested for that crime.

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<v Speaker 11>There was no evidence that a black man had committed

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<v Speaker 11>this crime, but that didn't matter because the story was

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<v Speaker 11>one that confirmed and exposed the beliefs that so many shared.

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<v Speaker 6>The families accepted the mayor's apology, calling it a personal triumph.

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<v Speaker 6>Several hundred families in Oklahoma City could lose their homes

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<v Speaker 6>over the holidays. They're given only five days notice and

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<v Speaker 6>then forty eight hours to get out amy cold try

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<v Speaker 6>and with housing authority. Shelter Well says women face the

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<v Speaker 6>brunt of those short term evictions.

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<v Speaker 12>Sixty one percent of those facing eviction are women, and

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<v Speaker 12>seventy one percent of those are households with children.

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<v Speaker 6>State Senator Julia Kurt has introduced a bill giving families

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<v Speaker 6>ten extra days to resolve those issues so they can

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<v Speaker 6>avoid eviction. Global News twenty four hours a day and

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<v Speaker 6>whenever you want it. With Bloomberg News Now, I may

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<v Speaker 6>Nee Morrison. This is Bloomberg Karen.

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<v Speaker 2>All right, Amy, thank you, And as Amy said, you

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<v Speaker 2>can get news throughout the day here on Bloomberg Radio.

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<v Speaker 2>But now even better, you can get the latest news

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<v Speaker 2>on demand. And that means whenever you want it. You

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<v Speaker 2>can get informed on your schedule. You can listen and

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<v Speaker 2>subscribe to Bloomberg News Now on the Bloomberg Business app,

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<v Speaker 2>Bloomberg dot Com plus Apple, Spotify, and anywhere else you

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<v Speaker 2>get your podcasts. Time now for the Bloomberg Sport Update,

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<v Speaker 2>Here's John Stashauer John.

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<v Speaker 13>Karon was National Signing Day in college football. Though rich

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<v Speaker 13>get Richard, Georgia said to have had the best recruiting class,

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<v Speaker 13>Three of the top twelve players in the country head

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<v Speaker 13>into Athens. Twenty of Georgia's recruits a four star and

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<v Speaker 13>a defensive back who's considered a five star was going

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<v Speaker 13>to go to Florida State. Change his mind. We'll go

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<v Speaker 13>to Georgia, Florida State, and Georgia will play next week

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<v Speaker 13>and the Orange Bowl, Ohio State able to keep top

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<v Speaker 13>wide receiver Jeremiah Smith, who had said to be waivering.

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<v Speaker 13>College basketball, Yukon was ranked fifth. I FEDY national champs

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<v Speaker 13>were ten to one with four wins over top fifteen

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<v Speaker 13>teams and three over top ten teams, but the Huskies

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<v Speaker 13>upset lost at Seaton Hall seventy five to sixty. NBA

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<v Speaker 13>saw Philadelphia beat Minnesota one twenty seven to one thirteen.

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<v Speaker 13>The Timberwolves leave the West. It's just their second loss

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<v Speaker 13>in the last eleven games. For six Ers MVP Joe

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<v Speaker 13>lmbing fifty one points seventeen of twenty five from the field,

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<v Speaker 13>seventeen of eighteen from the free throw line. Lakers hoisted

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<v Speaker 13>that championship battle when they won that in season tournament.

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<v Speaker 13>Since they did that, they're one and four. They lost

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<v Speaker 13>at Chicago Lebron James in defeat twenty five points, just

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<v Speaker 13>an assist, shy of a triple double. The next beat

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<v Speaker 13>the Nets, they had lost their last six games in Brooklyn,

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<v Speaker 13>was one twenty one to oneh two. The Celtics won

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<v Speaker 13>at Sacramento one forty four till one nineteen. They did

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<v Speaker 13>it without Jason Tatum. Capitol scored in overtime beat the

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<v Speaker 13>Islanders three to two. The Mets have acquired pitcher Adrian

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<v Speaker 13>Helser from Milwaukee Johns Stashewer. Bloomberg Sports.

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<v Speaker 10>From coast to coast, from New York to San Francisco,

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<v Speaker 10>Boston to Washington, DC, nationwide on Syriasxam, the Bloomberg Business

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<v Speaker 10>Appen Bloomberg dot Com. This is Bloomberg Daybreak.

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<v Speaker 5>Good morning.

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<v Speaker 1>I'm Nathan Hager, headed to the Thursday morning open. Futures

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<v Speaker 1>are on the rise, but global stocks have been taking

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<v Speaker 1>a bit of a breather from this month's rally that's

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<v Speaker 1>pushed equities to their highest levels of the year. Investors

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<v Speaker 1>maybe dialing back some optimism about the FED cutting in

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<v Speaker 1>interest rates early next year. For more, We're joined by

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<v Speaker 1>Bloomberg's Critty Gupta Critty, Good morning. It almost looks like

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<v Speaker 1>the Santa Claus rally got pulled forward just a bit.

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<v Speaker 1>Is that how things look to you?

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<v Speaker 12>Yeah, it does actually kind of look like that, except

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<v Speaker 12>now you're staring need to see the consequences of that decision,

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<v Speaker 12>which is simply that you are going to see a

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<v Speaker 12>bit of a selloff going into perhaps the new year.

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<v Speaker 12>Remember January is seasonally a lower performing month right next

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<v Speaker 12>to September, after the summer rally that we tend to see.

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<v Speaker 12>So the natural pullback is already existing. But someone argue

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<v Speaker 12>that this isn't necessarily a market narrative that we're seeing.

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<v Speaker 12>This is really a positioning story, because not only do

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<v Speaker 12>the Santa rally get pulled forward, but some of the data,

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<v Speaker 12>some of the rate cut narrative, and of course the

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<v Speaker 12>market's anticipation of what Shairpow was going to say in

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<v Speaker 12>his last press conference actually did a lot of the

0:11:49.720 --> 0:11:51.959
<v Speaker 12>work for some of the bowls in the market.

0:11:52.240 --> 0:11:54.520
<v Speaker 1>There's a lot of questions still, though, isn't there about

0:11:54.559 --> 0:11:58.000
<v Speaker 1>whether we are going to get a soft landing next year.

0:11:58.080 --> 0:12:00.880
<v Speaker 1>A lot of analysts are thinking that a recession is

0:12:00.920 --> 0:12:03.040
<v Speaker 1>still in the forecast. I mean, what could that mean

0:12:03.120 --> 0:12:04.880
<v Speaker 1>for stock setting into twenty twenty four.

0:12:05.280 --> 0:12:07.840
<v Speaker 12>Well, that's part of actually the case for a rate cut.

0:12:07.880 --> 0:12:09.640
<v Speaker 12>So if you actually look at what people are saying,

0:12:09.640 --> 0:12:13.000
<v Speaker 12>the last time a rate cut had actually happened prior

0:12:13.240 --> 0:12:15.480
<v Speaker 12>to COVID, it was in twenty nineteen. It was during

0:12:15.480 --> 0:12:17.480
<v Speaker 12>the Trump era. We were talking about a trade war

0:12:17.960 --> 0:12:21.840
<v Speaker 12>really upending global trade, and that was one Chair Powell

0:12:21.960 --> 0:12:23.920
<v Speaker 12>of all people, by the way, said we're actually going

0:12:23.960 --> 0:12:27.000
<v Speaker 12>to cut rates, not because we need to, but because

0:12:27.040 --> 0:12:29.280
<v Speaker 12>we might need to in the future. The idea of

0:12:29.320 --> 0:12:31.839
<v Speaker 12>an insurance cut, and that's exactly what the market is

0:12:31.840 --> 0:12:34.160
<v Speaker 12>saying is going to happen again. That it's not going

0:12:34.200 --> 0:12:37.520
<v Speaker 12>to be a question of does the economy hit a recession,

0:12:37.840 --> 0:12:41.040
<v Speaker 12>but do we start to go in that direction? And

0:12:41.360 --> 0:12:43.680
<v Speaker 12>Chair Powell in this peers at the FMC actually say

0:12:43.880 --> 0:12:45.600
<v Speaker 12>we see it coming, We're going to act very quickly,

0:12:45.640 --> 0:12:48.160
<v Speaker 12>and we're going to basically ensure ourselves cut rates. That

0:12:48.320 --> 0:12:51.480
<v Speaker 12>postpone some sort of turn down. But a lot of

0:12:51.559 --> 0:12:55.679
<v Speaker 12>pushback against that narrative is that recessions don't happen gradually.

0:12:55.760 --> 0:12:57.880
<v Speaker 12>They happened very quickly and all at once, and the

0:12:58.040 --> 0:13:02.480
<v Speaker 12>data deteriorates very very quickly, and the Federal Reserve naturally

0:13:02.640 --> 0:13:05.120
<v Speaker 12>is data driven, so one data point may not be

0:13:05.240 --> 0:13:07.199
<v Speaker 12>enough of a canary of the coal mine for them

0:13:07.240 --> 0:13:07.720
<v Speaker 12>to catch it.

0:13:07.880 --> 0:13:09.720
<v Speaker 1>Well, we are going to get a pretty significant, well

0:13:09.720 --> 0:13:12.120
<v Speaker 1>a couple of pretty significant data points even before the

0:13:12.200 --> 0:13:14.680
<v Speaker 1>end of this year. We got GDP coming out and

0:13:15.080 --> 0:13:17.760
<v Speaker 1>the Feds for Ferred inflation gauge tomorrow. I mean, what

0:13:17.840 --> 0:13:20.640
<v Speaker 1>kind of volatility could we be looking at depending on

0:13:21.000 --> 0:13:23.040
<v Speaker 1>how those indicators turn out.

0:13:23.520 --> 0:13:25.240
<v Speaker 12>Yeah, well, a lot of volatility. Because it's not just

0:13:25.320 --> 0:13:28.280
<v Speaker 12>about the economic data itself. It's also about the geopolitics.

0:13:28.280 --> 0:13:30.160
<v Speaker 12>And here's why this really matters. Of course, the war

0:13:30.200 --> 0:13:31.719
<v Speaker 12>in the Middle East is going to be a big

0:13:31.760 --> 0:13:33.480
<v Speaker 12>part of that equation. One of the big fears. I

0:13:33.480 --> 0:13:36.240
<v Speaker 12>imagine what Chair Powell's worst nightmare is going to be

0:13:36.320 --> 0:13:39.040
<v Speaker 12>is some sort of tick up in inflation. Where does

0:13:39.040 --> 0:13:42.520
<v Speaker 12>that tick up come from, Nathan, It comes from potentially commodities,

0:13:42.520 --> 0:13:44.920
<v Speaker 12>It comes from wages. It also comes from a sort

0:13:44.920 --> 0:13:47.080
<v Speaker 12>of geopolitical conflict that is long lasting. So if you

0:13:47.120 --> 0:13:49.720
<v Speaker 12>start to see more of a read through into commodity

0:13:49.720 --> 0:13:51.880
<v Speaker 12>prices or more of a read through into shipping costs,

0:13:52.000 --> 0:13:55.800
<v Speaker 12>all eventually, if it lasts long enough, translates into prices

0:13:55.800 --> 0:13:58.040
<v Speaker 12>for the American consumer. You're already seeing that with some

0:13:58.080 --> 0:14:00.959
<v Speaker 12>of the shipping companies actually rally leating, the stocks actually

0:14:01.040 --> 0:14:03.800
<v Speaker 12>higher because they can pass on those costs. That is

0:14:03.840 --> 0:14:06.360
<v Speaker 12>all inflationary, and that's going to really upend any of

0:14:06.360 --> 0:14:09.360
<v Speaker 12>this dubvish narrative that the Chair is really setting right now.

0:14:09.440 --> 0:14:11.840
<v Speaker 1>So the market participants that you're talking to as we

0:14:11.880 --> 0:14:15.040
<v Speaker 1>watch these ships you're around Africa to get around the

0:14:15.040 --> 0:14:16.920
<v Speaker 1>way of the Red Sea. I mean, how do you

0:14:17.000 --> 0:14:18.360
<v Speaker 1>play this well?

0:14:18.400 --> 0:14:20.160
<v Speaker 12>I mean the question of the day is how do

0:14:20.200 --> 0:14:22.480
<v Speaker 12>you hedge it? And for so long the only people

0:14:22.480 --> 0:14:25.000
<v Speaker 12>we are hedging it and using the US dollar. But Nathan,

0:14:25.000 --> 0:14:28.240
<v Speaker 12>going into an election year, that is especially a trade

0:14:28.280 --> 0:14:31.200
<v Speaker 12>that could go to hour very very quickly in terms

0:14:31.240 --> 0:14:33.040
<v Speaker 12>of what the hedge actually is. People are buying back

0:14:33.080 --> 0:14:35.440
<v Speaker 12>into commodities because at the end of the day, most

0:14:35.480 --> 0:14:37.520
<v Speaker 12>of the trade that happens in the Red Sea is

0:14:37.680 --> 0:14:40.920
<v Speaker 12>oil related. So if you start to see oil prices

0:14:41.320 --> 0:14:43.480
<v Speaker 12>get higher as a function of higher tanker rates, higher

0:14:43.560 --> 0:14:47.160
<v Speaker 12>insurance rates of the shipping equation, that is all going

0:14:47.200 --> 0:14:49.240
<v Speaker 12>to push oil prices higher as well. The reason you're

0:14:49.240 --> 0:14:50.800
<v Speaker 12>not seeing that in the market right now is because

0:14:50.840 --> 0:14:53.800
<v Speaker 12>most of it is actually kind of cushioned by the

0:14:53.840 --> 0:14:56.120
<v Speaker 12>OPEQ plus supply narrative. But then hey, take a look

0:14:56.120 --> 0:14:58.760
<v Speaker 12>at what you're seeing in the US benchmark, and that

0:14:58.880 --> 0:15:00.880
<v Speaker 12>move is actually more substantial.

0:15:00.960 --> 0:15:05.760
<v Speaker 1>What's the bull case for stocks next year given so

0:15:05.840 --> 0:15:07.480
<v Speaker 1>much of the uncertainty that we still have.

0:15:07.840 --> 0:15:10.600
<v Speaker 12>The ballcase is simply if the resilience lasts even longer,

0:15:10.600 --> 0:15:12.880
<v Speaker 12>and you'll remember that a good chunk of the stock

0:15:13.000 --> 0:15:15.240
<v Speaker 12>rally has really been what a lot might call a

0:15:15.320 --> 0:15:18.280
<v Speaker 12>magnificent seven, which has really been a function of the

0:15:18.320 --> 0:15:20.320
<v Speaker 12>AI frenzy. So now you have to see a lot

0:15:20.320 --> 0:15:22.720
<v Speaker 12>of people deliver on it. Nathan, there is historical precedent

0:15:22.800 --> 0:15:25.600
<v Speaker 12>for this when cloud was the buzzword a couple of

0:15:25.680 --> 0:15:29.560
<v Speaker 12>years ago, where Oracle, Alphabet, Microsoft, we're all kind of

0:15:29.560 --> 0:15:33.640
<v Speaker 12>competing for being the title of kind of the king

0:15:33.680 --> 0:15:35.400
<v Speaker 12>of the cloud. And I think what's really important here

0:15:35.440 --> 0:15:37.560
<v Speaker 12>is that Microsoft really came out and won out on

0:15:37.600 --> 0:15:40.000
<v Speaker 12>that business because they were able to deliver. AI is

0:15:40.080 --> 0:15:43.640
<v Speaker 12>very different because they are dealing with far more regulatory challenges,

0:15:43.720 --> 0:15:46.640
<v Speaker 12>far more labor challenges, and of course a general understanding

0:15:46.720 --> 0:15:49.920
<v Speaker 12>of whether or not you actually want AI in everyday

0:15:50.000 --> 0:15:53.000
<v Speaker 12>societal matters, and that appetite is where you could see

0:15:53.120 --> 0:15:55.960
<v Speaker 12>really the case for tech get made or broken and

0:15:56.040 --> 0:15:58.880
<v Speaker 12>vice versa potentially lead to a rally or lead to

0:15:58.920 --> 0:15:59.640
<v Speaker 12>a major correction.

0:16:01.400 --> 0:16:04.480
<v Speaker 1>This is Bloomberg Daybreak Today, your morning brief on the

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