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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning.

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Speaker 3: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 3: stories we're following today.

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Speaker 4: Karen will have more on the markets in a minute,

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Speaker 4: but first, we're getting new pushback on President Trump's giant

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Speaker 4: tax cut bill, and it's coming from Elon Musk. The

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Speaker 4: billionaire has announced he is stepping back from his Department

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Speaker 4: of Government efficiency effort, but he says the bill undercuts

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Speaker 4: his efforts to slash government spending.

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Speaker 2: Musk spoke with CBS News.

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Speaker 5: I was like, we're disappointed to see the massive spending bill. Frankly,

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Speaker 5: which increases the bunch depsit not doesn't decrease it, and

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Speaker 5: that reminds the work that the Dooche team is doing.

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Speaker 4: Elon Musk questioned whether the bill can be both big

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Speaker 4: and beautiful. In his words, quote, I think a bill

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Speaker 4: can be big or it can be beautiful, but I

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Speaker 4: don't know if it can be both. The legislation includes

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Speaker 4: an array of tax cuts. It is now going to

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Speaker 4: the Senate after narrowly passing the House last week. And

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Speaker 4: you can hear Elon Musk's full interview on CBS Sunday Morning.

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Speaker 4: It airs this Sunday at ten am Wall Street Time

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Speaker 4: on Bloomberg Radio.

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Speaker 3: Nathan Elon Musk is going to have to face a

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Speaker 3: lawsuit over his work to slash government jobs and spending.

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Speaker 3: More than a dozen Democratic state attorneys general brought the case,

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Speaker 3: saying Musk wielded illegal power as the public face of DOGE.

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Speaker 3: US District Judge Tanya Chunkins says the Trump administration adopted

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Speaker 3: a perverse reading of the Constitution and appeared to sanction

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Speaker 3: unlimited executive power. With the Doge effort, the judge tossed

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Speaker 3: out a claim against President Trump, saying courts cannot restrict

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Speaker 3: presidents performing their official duties.

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Speaker 4: Turn now Karen Tumusk's SpaceX That company's colossal starship rocket

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Speaker 4: suffered a leak, tumbled out of control in space, and

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Speaker 4: disintegrated as it hurtled back to Earth at a test

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Speaker 4: flight yesterday. A few minutes in, the recycled super heavy

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Speaker 4: boosters separated from the upper portion of starship and fiired

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Speaker 4: its engines. But as it maneuvered itself into position and

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Speaker 4: plunged back to Earth, it suffered an apparent problem and exploded.

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Speaker 6: We have essentially lost attitude control on the ship. At

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Speaker 6: this point it is suborbital, so it's still headed to

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Speaker 6: the exact same trajectory as before. We were not able

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Speaker 6: to get that payload door open and deploy those nose cones.

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Speaker 6: We've been dealing with some leaks on the ship. This

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Speaker 6: is also what led to that loss of attitude controls.

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Speaker 6: So at this point we are kind of in a spin.

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Speaker 4: Now space ex stress as it learns from every test flight,

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Speaker 4: saying quote, We're going to learn iterate and iterate over

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Speaker 4: and over again, Nathan.

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Speaker 3: The Trump administration is taking its pressure on colleges and

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Speaker 3: universities to a new level. Secretary of State Marco Rubio

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Speaker 3: has ordered embassies around the world to stop scheduling student

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Speaker 3: visa interviews. The administration is considering tougher reviews of students'

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Speaker 3: social media accounts for signs of anti Semitism or a

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Speaker 3: national security risk. Here's State Departments Spokesomantammy Bruce.

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Speaker 7: Every sovereign country has a right to know who's trying

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Speaker 7: to come in, why they want to come in, who

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Speaker 7: they are, what they've been doing, and at least hopefully

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Speaker 7: within that framework, determine what they will be doing.

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Speaker 3: State Department spokes so men Tammy Bruce. This latest move

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Speaker 3: comes after the Department of Homeland Security tried to block

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Speaker 3: Harvard from enrolling international students.

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Speaker 8: That effort is on hold in court.

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Speaker 3: A top Justice Department lawyer is suggesting more action is coming,

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Speaker 3: saying the University of California is one that can expect

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Speaker 3: massive lawsuits.

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Speaker 4: Certain of the markets now, Karen futures are lower after

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Speaker 4: yesterday's tech led rally on Wall Street, and one of

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Speaker 4: those tech giants reports earnings this afternoon.

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Speaker 2: That would be in Nvidia.

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Speaker 4: Let's get a preview from Bloomberg's tom buzzby Well.

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Speaker 9: Demand for Nvidia's AI chips remain strong from US firms

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Speaker 9: still building out their AI infrastructure. The big question how

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Speaker 9: the company is dealing with ker on chipping its products

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Speaker 9: to customers in China that prompted the company to already

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Speaker 9: announce a five and a half billion dollar write down

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Speaker 9: a few weeks back. Also key for investors any update

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Speaker 9: on plans to launch cheaper Blackwell chips just for the

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Speaker 9: Chinese market and a timeline for its next generation Ruben processors.

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Speaker 9: Despite the expected write down, Bloomberg consensus calls for revenue

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Speaker 9: of forty three point three two billion dollars adjusted earnings

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Speaker 9: per share of eighty eight cents.

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Speaker 2: Tom buzzby Bloomberg Radio. All right, Tom, thank you.

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Speaker 4: Stay with Bloomberg for full coverage of Nvidia's earnings on

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Speaker 4: a special edition of Bloomberg Technology, when we'll be speaking

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Speaker 4: with the CEO, Jensen Wong. Catch it at six thirty

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Speaker 4: pm Wall Street Time on Bloomberg Radio, Bloomberg Television, and

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Speaker 4: the Bloomberg Podcast page on YouTube.

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Speaker 3: Nathan and Asia. Japan's latest auction of forty year government

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Speaker 3: bonds has seen its weakest demand in almost a year.

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Speaker 3: The outcome risk fueling further volatility and global dead markets

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Speaker 3: amid concerns that rising governments spending could push deficits into

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Speaker 3: dangerous territory.

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Speaker 4: And can their new developments. This warning in Japan's kneepon

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Speaker 4: Steel and its planned takeover of US Steel, the US

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Speaker 4: government's poise to receive a so called golden share in

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Speaker 4: US Steel as a condition for approving the deal. Sources

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Speaker 4: say the plan would give the government to facto veto

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Speaker 4: rights on certain company decisions and appointments, and it's part

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Speaker 4: of ongoing talks between authorities and the companies. On Friday,

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Speaker 4: President Trump announced a partnership that included fourteen billion dollars

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Speaker 4: in new investments, but at that time he provided few

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Speaker 4: additional details and.

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Speaker 3: Nathan, the president is continuing to push to take Fanny

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Speaker 3: May and Freddie Mack public. We get the details with

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Speaker 3: the Bloomberg's John Tucker, John, good morning.

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Speaker 2: Good morning, Karen.

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Speaker 10: President Trump wrote last night in a post on his

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Speaker 10: Truth social platform, I am working on taking these amazing

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Speaker 10: companies public now. Importantly, he also noted the US government

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Speaker 10: would retain guarantees in an oversight role over Freddy and

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Speaker 10: Freddie Mack and Fanny May. They have tried this before,

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Speaker 10: but it turned out to be too complex. Both Fanning

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Speaker 10: and Freddie are government sponsored enterprises. They were created to

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Speaker 10: enhance the flow credit to specific areas of the economy,

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Speaker 10: in this case housing, with a government backstop. Their bonds

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Speaker 10: are as seen as among the safest, but they've been

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Speaker 10: under government conservatorship since the two thousand and eight financial crisis.

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Speaker 10: Investors have called for the two government to aid the

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Speaker 10: government to release the two entities, which could provide a

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Speaker 10: windfall for shareholders, including the federal government, but there's also

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Speaker 10: a fear it could raise mortgage rates. You know, new

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Speaker 10: York Home, John Tucker, Bloomberg Radio.

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Speaker 2: John, Thanks.

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Speaker 4: President Trump's trade war is leading businesses to freeze hiring

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Speaker 4: and hold off on future investment decisions. That's the view

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Speaker 4: of Richmond Fed President Thomas Barkin. He spoke with us

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Speaker 4: yesterday right here on Bloomberg Radio.

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Speaker 11: When I'm talking to businesses, which you know I do

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Speaker 11: every day, I've been describing this as driving through fog.

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Speaker 2: It's just very hard to.

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Speaker 11: Drive when it's really foggy, and businesses are afraid to

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Speaker 11: accelerate because they don't know what's around the next curve.

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Speaker 11: And they're also afraid to put on the gas because

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Speaker 11: you don't want someone crashing into you. And so by

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Speaker 11: and large, they're they're pulling over and putting on the hazards.

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Speaker 4: Richmond Fed President Thomas Barkins's colleagues at the Central Bank

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Speaker 4: have held interest rates steady this year, biding time to

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Speaker 4: see how the Trump administration's policy changes shape the economy.

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Speaker 4: Catch our full conversation with Richmond Fed Chief Tom Barkin

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Speaker 4: on the Bloomberg Podcast YouTube page.

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Speaker 9: And you're up.

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Speaker 3: Nathan Exchange at the top at Stilantis, the automaker has

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Speaker 3: appointed as America's had Antonio Felosa's chief executive Stilantis, is

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Speaker 3: relying on an experienced company insider to turn around the

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Speaker 3: automaker after former boss Carlos Tavares was forced out over

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Speaker 3: slumping sales and profit. Time now for a look at

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Speaker 3: some of the other stories making news in New York

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Speaker 3: and around the world, and for that we're joined by

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Speaker 3: Bloomberg's Michael Barer.

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Speaker 12: Michael, good Morning, Good morning, Karen.

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Speaker 13: Ukraine President Vladimir Zelenski called on Western allies to provide

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Speaker 13: about thirty billion dollars by the end of the year

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Speaker 13: to boost domestic weapons production and hold off Russia's advance.

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Speaker 13: Support from the US under President Donald Trump appears waning,

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Speaker 13: and efforts at peace negotiations with the rushas of Vladimir

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Speaker 13: Putin are stoling. It comes as President Trump is indicated

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Speaker 13: that he's losing patients with the war in Ukraine and

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Speaker 13: has directed his frustration for the most part at Putin.

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Speaker 13: A former tab aide to Sean Diddy Combs has testified

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Speaker 13: at his sex trafficking trial that the music mogul threatened

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Speaker 13: her with death on her first day on the job.

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Speaker 13: Capricorn Clark also says Combs later waived a gun as

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Speaker 13: he kidnapped her in an angry rush to find and

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Speaker 13: kill rapper kid cutting. Prosecutors are trying to prove Combs

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Speaker 13: led a racketeering conspiracy that relied on fear and violence.

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Speaker 13: Attorney and court watcher Areva Martin says Clark's testimony coroborated

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Speaker 13: what kid Cutty already told the jury.

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Speaker 14: It is really damning testimony against Sean Combs when you

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Speaker 14: look at the number of witnesses that have come into

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Speaker 14: that courtroom that have corroborated violence that was perpetrated against

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Speaker 14: Cassie and others, really really compelling testimony for the prosecution.

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Speaker 13: Attorney Reva Martin. Combs has pleaded not guilty. President Trump

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Speaker 13: issued partners for the reality TV stars Todd and Julie Chrisling,

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Speaker 13: the stars of chrisly Know's Best, were sentenced to years

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Speaker 13: in prison for defrauding banks out of more than thirty

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Speaker 13: six million dollars in hiding millions from the irs, also

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Speaker 13: receiving presidential pardons this week. Paul Walzach, convicted tax cheat,

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Speaker 13: has been partnered. Weeks after his mother attended a million

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Speaker 13: dollar per head fundraiser with President Trump at Mara a Lago.

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Speaker 13: Police in Connecticut are investigating a bass shooting in the

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Speaker 13: mall in Waterbury. At least four victims were shot at

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Speaker 13: the Brass Mill Center Mall. Waterbury Police Chief Fernando Spagnolo.

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Speaker 15: There were some people that sheltered in place. It was

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Speaker 15: really amazing to watch people in this time of crisis

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Speaker 15: keep cool heads and follow plans and shelter in place.

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Speaker 13: Chief Spagnolo says, a person of interest is in custody.

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Speaker 13: Global News twenty four hours a day, ay and whenever

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Speaker 13: you want it with Bloomberg News. Now, I'm Michael Barran.

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Speaker 13: This is Bloomberg Karen.

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Speaker 3: All right, Michael Barr, thank you time now for the

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Speaker 3: Bloomberg Sports Update. Here's John Stanshower. John, good morning.

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Speaker 12: Do you want to care the next We're trying for

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Speaker 12: another road.

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Speaker 16: When they had six and seven tries in the postseason,

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Speaker 16: had another come from behind victory at Indiana.

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Speaker 12: They never trailed by twenty.

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Speaker 16: Like in the last three comeback, but in Game four,

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Speaker 16: the Pacers were in front almost the whole night. Nick

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Speaker 16: stayed in it, but Indiana always had the answer.

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Speaker 9: Ridgley is around the screen on top Blenchers Bloomber fun

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Speaker 9: Factor Bridges another three.

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Speaker 12: He's six one six Poe game Caliberton leaving Travin Stone.

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Speaker 2: Goes on top.

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Speaker 12: It's top and too, I don't do it, Auntie NTI.

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Speaker 16: That game flinching three came with forty six seconds left,

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Speaker 16: hit by the ex nick Obi top In. Indiana won one,

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Speaker 16: thirty to one to twenty one for Tyrese Haliburton, a

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Speaker 16: statline never seen before in the playoffs thirty two points,

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Speaker 16: twelve rebounds, fifteen assists and no turnovers. Jalen Bruns another

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Speaker 16: Nicks with thirty one. It's three to one Indiana. Game

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Speaker 16: five tomorrow at the Guard and Stanley Cup Final looked

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Speaker 16: like a rematchup last year when Florida beat Edmonton. The

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Speaker 16: Panthers are up three one, they can win the East.

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Speaker 16: Tonight at Carolina, the Oilers are up three to one.

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Speaker 16: They beat Dallas four to one. Since scoring five goals

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Speaker 16: in the third period of Game one, the Stars last

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Speaker 16: three games held the two goals. Another win for the

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Speaker 16: Yankees made it fifteen to the last nineteen three to

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Speaker 16: two over the Angels behind Carlos rode On seven scoreless innings.

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Speaker 16: He struck out ten Mets scored four in the first

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Speaker 16: went on to beat the White Sox sixty four, improving

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Speaker 16: to twenty one and six in City Field. Nationals lost

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Speaker 16: in Seattle nine to one. Red Sox lost in Milwaukee

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Speaker 16: five to one. At Christian Yelich Tenthitying Grand Slam French Open,

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Speaker 16: Straight said opening round wins for No Back, Djokovic, Coco Golf,

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Speaker 16: Jess Pagula, Carlos, Welcome out, egoshiantek Anna Arena, Statelinka starting

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Speaker 16: the second round today, Johns Dashedward, Bloomberg Sports Karen.

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Speaker 1: Meathan Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 1: and around the world on Bloomberg.

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Speaker 8: Dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.

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Speaker 4: Good morning, I'm Nathan Hager, and we are counting down

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Speaker 4: to the big earnings event of the week. After today's

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Speaker 4: closing bell, we get the latest quarterly results from Nvidia,

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Speaker 4: the chip giant that has become a bellweather of artificial

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Speaker 4: intelligence demand and the tech sector as a whole. So

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Speaker 4: let's get a preview. We're joined now by Bloomberg's Kritty,

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Speaker 4: Gupta and Critty. We've talked about this many times before.

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Speaker 4: Investors have kind of gotten used to blowout results from

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Speaker 4: Nvidia quarter in and quarter out.

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Speaker 2: Can they expect the same this time around?

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Speaker 8: Good morning, Good morning, Nathan.

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Speaker 17: This is the story of the A plus plus plus

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Speaker 17: student and whether or not they can keep that really

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Speaker 17: stellar grade point average.

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Speaker 8: But that's really every quarter we talk about this.

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Speaker 17: That's the challenge in that the expectations are just so high,

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Speaker 17: which is what creates that volatility that you just mentioned.

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Speaker 17: In terms of the earnings reports. A lot of folks

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Speaker 17: decide to hedge either up or down based on these earnings,

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Speaker 17: and the margin of the miss is also another nuance

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Speaker 17: to add on top of that. Now we have to

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Speaker 17: factor in the Trump administration's curb exports and what that

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Speaker 17: looks like in terms of the write downs that they've given.

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Speaker 17: So that's a laundry list of things we're watching, Nathan.

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Speaker 17: But let's divide it piece by piece if we can.

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Speaker 17: Kicking it off with the AI story, because at the

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Speaker 17: end of the day, it's the AI momentum that matters

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Speaker 17: the most this idea.

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Speaker 8: There's unsatiable demand when.

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Speaker 17: It comes to the AI data center story, and Video

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Speaker 17: is out front in terms of monetizing that and really

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Speaker 17: leading the innovation there, so that data center revenue for

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Speaker 17: the first quarter, the estimate is about thirty nine billion

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Speaker 17: dollars a little over there as well.

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Speaker 8: They're expecting the second quarter.

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Speaker 17: The analysts excuse me, the Street analysts consensus is expecting

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Speaker 17: the second revenue quarter to go up to about forty

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Speaker 17: six billion. Those are some very high numbers coming from

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Speaker 17: about forty three billion in the first quarter. So you

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Speaker 17: can really see how the expectations are very high when

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Speaker 17: it comes to the revenue story for Nvidia.

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Speaker 4: But how can Nvidia meet those expectations when we've been

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Speaker 4: hearing ahead of these earnings from CEO Jensen Wong that

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Speaker 4: the chip curbs, particularly out of China are a mistakes.

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Speaker 17: It's an interesting one because Nvidia is one sitting on

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Speaker 17: piles and piles of cash, and this is a symptom

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Speaker 17: of kind of the post COVID story where so many

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Speaker 17: of these tech giants have been sitting on so much cash.

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Speaker 17: But Nvidia has invested a lot of that in R

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Speaker 17: and D and specifically in creating chips that can kind

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Speaker 17: of circumvent the Biden era export controls as well, so

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Speaker 17: you can still serve a Chinese market without providing those

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Speaker 17: high end military grade kind of AI powered computer chips,

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Speaker 17: Donald Trump and his administration saying, well.

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Speaker 8: Those don't cut it either.

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Speaker 17: And it's something Nvidia has already talked about in terms

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Speaker 17: of a five and a half billion dollar right down.

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Speaker 17: But Nathan just off some rough math here, and there

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Speaker 17: is obviously way more nuance. But if you just look

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Speaker 17: at those first quarter and second number quarters, I told

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Speaker 17: you so the revenue estimate about forty three billion, a

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Speaker 17: scent quarter forecasted of about forty six billion, That in

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Speaker 17: itself is about a three billion dollar difference from quarter

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Speaker 17: to quarter. A write down about five and a half

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Speaker 17: billion still doesn't necessarily handicap in VideA in the way

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Speaker 17: that it could to other companies.

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Speaker 4: Got about a minute left, Critty, what further commentary could

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Speaker 4: we hear when it comes to some of the latest

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Speaker 4: chips that in Vidia has coming down the pike.

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Speaker 17: So in video is going through kind of its own

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Speaker 17: Apple moment where a lot of the focus is on yes, innovation, Yes,

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Speaker 17: it's on new markets like the Middle East for example,

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Speaker 17: where Donald Trump has touted so much of that Innvidia investment,

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Speaker 17: not to mention the domestic investment as well, but really

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Speaker 17: keep an eye on the design cycle, because the last

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Speaker 17: time they really launched a product, they're talking about shipping

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Speaker 17: delays that are pushing shipping those products to their clients

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Speaker 17: into twenty twenty six. Does that push out the innovation

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Speaker 17: cycle as well in terms of the next generation product

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Speaker 17: that they have to offer. I think that's the commentary

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Speaker 17: that you're going to want to watch today.

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Speaker 2: I'm Nathan Hager.

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