WEBVTT - Titanic Sub Tragedy; Yellen Sees Lower Recession Risk

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<v Speaker 1>From the Bloomberg Interactive Burger's Studios. This is Bloomberg day

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<v Speaker 1>Break for Friday, June twenty third. Coming up today, the.

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<v Speaker 2>Search for the missing Titanic sub comes to a tragic end.

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<v Speaker 1>Global stocks are on track for their biggest weekly decline

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<v Speaker 1>in three months.

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<v Speaker 2>Janet Yellen says the risk of a US recession is receding.

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<v Speaker 1>And City Group has a warning for employees on office attendance.

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<v Speaker 3>A section of I ninety five that collapsed in Philadelphia

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<v Speaker 3>reopens today. Plus Congress mon Santos slams a judge for

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<v Speaker 3>revealing the names behind posting his bond. I'm Michael Barr.

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<v Speaker 3>More ahead.

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<v Speaker 4>John stas Shower sports a lopsided loss to the Yankees.

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<v Speaker 4>The Mets to night visit Philadelphia. They held the NBA

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<v Speaker 4>Draft in Brooklyn.

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<v Speaker 5>That's all straight ahead on Bloomberg day Break, The Business

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<v Speaker 5>news you need to starn your day in just one

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<v Speaker 5>fifteen minute podcast each morning on Apples, Spotify, the Bloomberg

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<v Speaker 5>Business app, and everywhere you get your podcasts.

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<v Speaker 2>Good morning, I'm Nathan.

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<v Speaker 1>Hager and I'm Karen Moscow. Here are the stories we're

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<v Speaker 1>following today.

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<v Speaker 2>First, we begin with a tragic end to the search

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<v Speaker 2>for that submersible it was exploring the Titanic. Rescuers have

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<v Speaker 2>found the nose cone and other debris from the vessel,

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<v Speaker 2>known as the Titan. Coastguard Rear Admiral John Monger says

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<v Speaker 2>the five people on board are dead.

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<v Speaker 6>In consultation with experts from within the Unified Command, the

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<v Speaker 6>debris is consistent with the catastrophic loss of the pressure chamber.

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<v Speaker 2>We're Admiral John Mager says, they're going to keep collecting

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<v Speaker 2>information to determine the cause of that implosion. Bloomberg News

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<v Speaker 2>has learned the US Navy detected the implosion on Sunday

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<v Speaker 2>at the site where the Titan loss communications. A senior

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<v Speaker 2>Navy official says a decision was made to continue the

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<v Speaker 2>search and rescue to make every effort to save lives.

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<v Speaker 1>Well, Nathan, we turn now to the nation's capital, where

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<v Speaker 1>geopolitics and foreign relations are in focus. It was a

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<v Speaker 1>red carpet welcome for India's Prime Minister as Narndra of

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<v Speaker 1>Mody met with President Biden at the White House yesterday.

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<v Speaker 1>I joined press conference was followed by Modi addressing Congress.

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<v Speaker 1>Amy Morris has Moore from our Bloomberg ninety nine one

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<v Speaker 1>newsroom in Washington.

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<v Speaker 7>President Biden in Prime Minister Mody announced a series of

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<v Speaker 7>defense and commercial deals designed to improve military and economic

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<v Speaker 7>ties between the two nations during yesterday's state visit at

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<v Speaker 7>the White House. Later, Mody made a rare address to

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<v Speaker 7>a joint meeting of Congress, where he stressed the importance

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<v Speaker 7>of democracy.

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<v Speaker 5>The beauty of democracy in the constant connect with the people,

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<v Speaker 5>to listen to them.

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<v Speaker 7>At least seventy lawmakers called on President Biden to address

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<v Speaker 7>human rights violations in India. Still, Mody was met with

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<v Speaker 7>applause on Capitol Hill. The evening ended with a state

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<v Speaker 7>dinner at the White House in Washington. I'm Amy Morris

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<v Speaker 7>Bloomberg Daybreak.

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<v Speaker 8>Thank you Amy.

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<v Speaker 2>At that joint news conference with Prime Minister Modi, President

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<v Speaker 2>Biden also addressed relations with answering questions about this week's

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<v Speaker 2>comment where he referred to Chinese President Shi Jinping as

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<v Speaker 2>a dictator.

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<v Speaker 9>We had an incident that caused some confusion, you might say,

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<v Speaker 9>but President, but the Secretary of b Lincoln had a

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<v Speaker 9>great trip to China. I expect to be meeting with

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<v Speaker 9>President she sometime in the future, in the near term,

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<v Speaker 9>and I don't think it's had any real consequence.

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<v Speaker 2>All those sentiments from President Biden do not appear to

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<v Speaker 2>be shared by China. A spokesman for the Chinese embassy

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<v Speaker 2>says the president's remarks were quote erroneous, absurd, and irresponsible.

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<v Speaker 1>Well, we turned to the markets now, Nathan, and are

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<v Speaker 1>seeing global stocks had for their biggest weekly decline in

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<v Speaker 1>more than three months. Concerns of our higher interest rates

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<v Speaker 1>appear to be the catalyst. At the same time, we're

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<v Speaker 1>getting a positive outlook from the Treasury Secretary Jennet Yellen

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<v Speaker 1>says the risk of a US recession is declining. We

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<v Speaker 1>get more from Bloomberg's dun Krisner.

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<v Speaker 10>In an interview with Bloomberg News, Yellen said the odds

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<v Speaker 10>of recession, if anything, have gone down. That's because of

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<v Speaker 10>a tight labor market and inflation coming down. When it

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<v Speaker 10>comes to consumption, Yellen said we probably need to see

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<v Speaker 10>some slow down in spending in order to get inflation

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<v Speaker 10>under control. She said the core measure of price increases

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<v Speaker 10>is quite high. Yellen also said we could have a

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<v Speaker 10>lovely debate about what the inflation target would be, but

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<v Speaker 10>this is not the time for that debate. Fedhair J.

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<v Speaker 10>Powell has rejected the idea of entertaining a change in

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<v Speaker 10>the two percent target sentiment. He reiterated before Congress this

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<v Speaker 10>week in New York. I'm Doug Krisner Bloomberg Daybreak.

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<v Speaker 2>Thank you, Doug. Speaking of Jay Powell. The Fed chairs

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<v Speaker 2>wrapped up his semi annual testimony to Congress, and yesterday

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<v Speaker 2>saw Powell weighing in on the banking crisis. He says

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<v Speaker 2>Wall Street's biggest lenders may have to increase capital requirements

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<v Speaker 2>by twenty percent.

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<v Speaker 11>The capital requirements will be very, very skewed to the

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<v Speaker 11>eight largest banks. The jesips there may be some capital

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<v Speaker 11>increases for the other banks, and they won't. I'm not

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<v Speaker 11>I think none of this should affect banks under a

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<v Speaker 11>hundred billion.

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<v Speaker 2>Pal made those comments before the Senate Banking Committee as

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<v Speaker 2>he wrapped up two days of Congressional testimony.

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<v Speaker 1>Sticking with the banking sector, plenty of other news to

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<v Speaker 1>catch you up on this morning. Nathan Blackrock says it's

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<v Speaker 1>cutting staff. The firm says it's shifting its budget to

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<v Speaker 1>support critical priorities. Blackrock says the move will affect less

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<v Speaker 1>than one percent of employees.

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<v Speaker 2>And City Group's ramping up it's pushed to get its

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<v Speaker 2>workers back.

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<v Speaker 12>In the office.

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<v Speaker 5>Karen.

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<v Speaker 2>The firm's telling managers to let staff know they will

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<v Speaker 2>face consequences if they don't comply with office attendance policies.

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<v Speaker 2>We get the details from Bloomberg's Charlie Pellett.

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<v Speaker 12>Sources tell Bloomberg. While the vast majority of staffers are

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<v Speaker 12>following the firm's rules for hybrid work, the moves are

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<v Speaker 12>focused on those employees with persistent, unexplained absences, the sources,

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<v Speaker 12>managers will consider compliance with the rules when rating performance

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<v Speaker 12>and crafting pay packages. Citygroup is widely seen as to

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<v Speaker 12>be among the most amenable financial firms when it comes

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<v Speaker 12>to flexible work arrangements. Following the COVID nineteen pandemic in

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<v Speaker 12>New York, Charlie Pellett Bloomberg Daybreak.

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<v Speaker 1>All right, Charlie, thanks well. Another big bank has made

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<v Speaker 1>a settlement involving litigation over Jeffrey Epstein. JP Morgan has

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<v Speaker 1>agreed to pay two hundred ninety million dollars to settle

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<v Speaker 1>a lawsuit alleging it knowingly benefited from Epstein's sex trafficking.

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<v Speaker 1>The deal has been okayed by the lead plaintiff, but

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<v Speaker 1>must still be approved by a judge. Last month, Deutsche

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<v Speaker 1>Bank agreed to pay seventy five million dollars to settle

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<v Speaker 1>it's Epstein related lawsuit.

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<v Speaker 2>And a settlement's been reached in the first US Zantac

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<v Speaker 2>cancer lawsuit. British drugmaker GSK has reached a deal with

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<v Speaker 2>a man who claimed the drug maker's heartburn medication caused

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<v Speaker 2>his cancer. This is Bloomberg, and now it's time to

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<v Speaker 2>take a look at some of the other stories making

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

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<v Speaker 12>Good morning, Michael barn Good morning.

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<v Speaker 3>Nathan ben Dott says the temporary lanes of I ninety

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<v Speaker 3>five will reopen today in Philadelphia. Cruz have been working

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<v Speaker 3>twenty four to seven since the portion of the interstate collapsed.

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<v Speaker 3>On June eleventh. Petation Secretary Mike Carroll reached out to

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<v Speaker 3>Ricky Durst at the Pocono Raceway to see if the

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<v Speaker 3>state could use its dryer to keep moisture off the road.

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<v Speaker 13>It is a jet engine. It's gonna blow out about

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<v Speaker 13>fourteen hundred at fourteen hundred Greece fahrenheit. It's about three

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<v Speaker 13>thousand pounds of forty as the secretary says, it's buckled

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<v Speaker 13>into chabby Silverado, So it's a little bit of Franks

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<v Speaker 13>time thing.

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<v Speaker 3>Pen Dot says. During the asphalt paving, there were concerns

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<v Speaker 3>that rain would hold up repair crews. A judge just

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<v Speaker 3>blocked Wyoming's first in the nation ban on abortion pills

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<v Speaker 3>before it was set to be implemented July first. Several

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<v Speaker 3>states have banned abortion outright or restricted access to abortion pills.

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<v Speaker 3>The ruling comes just ahead of the one year anniversary

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<v Speaker 3>of the Supreme Court, essentially overturning Roe v. Wade In

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<v Speaker 3>battled Congressman George Santos is slamming a judge for revealing

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<v Speaker 3>his father and aunt were the ones who co signed

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<v Speaker 3>a bail bond to keep him out of jail.

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<v Speaker 2>My whole thing around keeping the sureties secret. What's for

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<v Speaker 2>their safety?

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<v Speaker 1>Because of the death threats I.

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<v Speaker 2>Get, I can handle that I ran for public office,

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<v Speaker 2>stated not, you're private citizens. One's a United States Postal worker,

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<v Speaker 2>the other ones a painter.

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<v Speaker 3>A request granted to when seal Court records revealed the

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<v Speaker 3>Long Island Republicans father and on co signed the five

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<v Speaker 3>hundred thousand dollars bond that enabled Santos's release, as he

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<v Speaker 3>awaits trial on federal charges of fraud, money laundering, and

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<v Speaker 3>theft of public funds. Prosecutors in New Mexico filed a

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<v Speaker 3>new charge against the armorer on the set of the

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<v Speaker 3>movie rust Hannegutierras Reed is now accused of evidence dampering

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<v Speaker 3>related to narcotics in connection with the fatal shooting of

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<v Speaker 3>cinematographer Helena Hutchins. The FDA is doubling down on banning

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<v Speaker 3>e cigarettes. It's warning store owners stop selling fruit and

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<v Speaker 3>candy flavored vapes, saying they pose a danger to young people.

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<v Speaker 3>Global News twenty four hours a day, powered by more

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<v Speaker 3>than twenty seven hundred journalists and analysts in over one

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<v Speaker 3>hundred twenty countries. I'm Michael Barran. This is Bloomberg. Nathan.

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<v Speaker 2>All right, Michael, thank you time now for the Bloomberg

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<v Speaker 2>Sports Update with John Stasheller. All right, Nathan, and the

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<v Speaker 2>Yankee game pretty much over.

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<v Speaker 4>Before the Yanks came to the plate, they were already

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<v Speaker 4>trailing Seattle four nothing. Mariners then scored twice in each

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<v Speaker 4>of the next three innings. It was ten to nothing

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<v Speaker 4>until in Isaiah Connor Fi left a two run homer

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<v Speaker 4>bottom of the ninth IKF had pitched a perfect top

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<v Speaker 4>of the ninth. Mariners won ten to two to avoid

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<v Speaker 4>getting swept Yankees os Texas tonight. Mets are in Philadelphia.

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<v Speaker 4>They had good success with the Phillis last season, and

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<v Speaker 4>they swept them a few weeks ago. But since that sweep,

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<v Speaker 4>the Phillies have gone thirteen and four and the Mets

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<v Speaker 4>have gone four and thirteen. The Jets back in March

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<v Speaker 4>acquired veteran safety Chuff Clark from Baltimore. He tore his

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<v Speaker 4>ACL an off season practice.

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<v Speaker 3>He'll miss the season.

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<v Speaker 4>Convictor wembn Yama live up to a tremendous amount of five,

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<v Speaker 4>nineteen years old from France, seven foot four, best NBA

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<v Speaker 4>prospect since Lebron James, drafted first overall by San Antonio

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<v Speaker 4>and focusing on team goals.

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<v Speaker 14>Some Pyers have tried to win the championship, win a

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<v Speaker 14>ring for years and haven't made it. And I want to.

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<v Speaker 8>I want to.

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<v Speaker 14>I don't want to be one of those, you know,

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<v Speaker 14>So yeah, this is the this is gonna be my

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<v Speaker 14>My goal is going to be to get closer and

0:10:20.080 --> 0:10:21.839
<v Speaker 14>closer every time to the ring.

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<v Speaker 4>Charlotte, with the second pook took Alabama's Brandon Millard Portland

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<v Speaker 4>followed with Stute Henderson who played in the G League,

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<v Speaker 4>and then Houston and Detroit and consecutive picks took twin

0:10:30.360 --> 0:10:32.719
<v Speaker 4>brothers a man in Ostair Thompson. The Nets back to

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<v Speaker 4>back first round picks took Noah Clowney from Alabama, then

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<v Speaker 4>Duke's Derek Whitehead. Another big NBA trade, Chris Paul now

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<v Speaker 4>goes from Washington to Golden State for Jordan Coole Travelers

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<v Speaker 4>Golf near hard for Jenny McCarthy leeds by two. Rory

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<v Speaker 4>McElroy trails by eight, but McElroy had the first hole

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<v Speaker 4>in one of his pro career John Stash that went

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<v Speaker 4>to Bluebird Sports.

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<v Speaker 5>From coast to coast, from New York to San Francisco,

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<v Speaker 5>Boston to Washington, DC, nationwide on siriusxam the Bloomberg Business

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<v Speaker 5>Appen Bloomberg dot com. This is Bloomberg Daybreak.

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<v Speaker 2>Good morning, I'm Nathan Hager. With the explosion of chat

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<v Speaker 2>GPT over the past year, companies are looking to implement

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<v Speaker 2>artificial intelligence across their businesses. But what will the future

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<v Speaker 2>look like with AI in it? Open AI CEO and

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<v Speaker 2>co founder Sam Altman joined our Emily Chang. At the

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<v Speaker 2>Bloomberg Technology Summit, they discussed existential questions about AI and

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<v Speaker 2>what should be done to regulate this powerful technology. Let's

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<v Speaker 2>listen in to part of that discussion.

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<v Speaker 15>Now, there's many ways it could go wrong, but we

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<v Speaker 15>work with powerful technology that can be used in dangerous

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<v Speaker 15>ways very frequently in the world, and I think we've

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<v Speaker 15>developed over the decades good safety system practices in many categories.

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<v Speaker 8>It's not perfect, and this won't be perfect either.

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<v Speaker 15>Things will go wrong, but I think we'll be able

0:12:01.200 --> 0:12:04.520
<v Speaker 15>to mitigate some of the worst scenarios you could imagine.

0:12:04.679 --> 0:12:07.760
<v Speaker 15>You know, bioterror is like a common example, cybersecurities another,

0:12:08.280 --> 0:12:10.880
<v Speaker 15>like many more we could talk about. But the main

0:12:11.200 --> 0:12:14.680
<v Speaker 15>thing that I feel is important about this technology is

0:12:14.720 --> 0:12:17.880
<v Speaker 15>that we are on an exponential curve and a relatively

0:12:17.880 --> 0:12:22.320
<v Speaker 15>steep one, and human intuition for exponential curves is like

0:12:22.400 --> 0:12:26.040
<v Speaker 15>really bad in general. It clearly was not that important

0:12:26.040 --> 0:12:29.040
<v Speaker 15>in our evolutionary history, and so I think we have

0:12:29.080 --> 0:12:31.199
<v Speaker 15>to given that we all have that weakness. I think

0:12:31.200 --> 0:12:33.240
<v Speaker 15>we have to like really push ourselves to say, Okay,

0:12:33.559 --> 0:12:36.800
<v Speaker 15>GPT four, you know, not a risk like you're talking

0:12:36.800 --> 0:12:39.440
<v Speaker 15>about there, but how sure we the GPT nine won't

0:12:39.480 --> 0:12:41.960
<v Speaker 15>be and if it might be, even if there's a

0:12:41.960 --> 0:12:44.360
<v Speaker 15>small percentage chance of it being really bad, like that

0:12:44.400 --> 0:12:45.200
<v Speaker 15>deserves great care.

0:12:45.559 --> 0:12:48.520
<v Speaker 16>And if there is that small percentage chance, why keep

0:12:48.559 --> 0:12:49.160
<v Speaker 16>doing this at all?

0:12:49.240 --> 0:12:52.480
<v Speaker 15>Like why not stop a I think that the upsides

0:12:52.520 --> 0:12:56.280
<v Speaker 15>here are tremendous, you know, opportunity for everyone on earth

0:12:56.360 --> 0:13:00.240
<v Speaker 15>to have a better quality education than basically any one

0:13:00.240 --> 0:13:03.880
<v Speaker 15>can get today. That seems like really important, and that'd

0:13:03.920 --> 0:13:06.920
<v Speaker 15>be a bad thing to stop medical care And what's

0:13:07.000 --> 0:13:09.439
<v Speaker 15>I think going to happen there and making that available

0:13:09.480 --> 0:13:12.920
<v Speaker 15>like truly globally, that's going to be transformative. The scientific

0:13:12.960 --> 0:13:15.440
<v Speaker 15>progress we're going to see. I'm a big believer that like,

0:13:15.760 --> 0:13:19.720
<v Speaker 15>real sustainable improvements in quality of life come from scientific

0:13:19.720 --> 0:13:22.120
<v Speaker 15>and technological progress, and I think we're gonna have a

0:13:22.160 --> 0:13:25.199
<v Speaker 15>lot more of that. So there are all the obvious benefits,

0:13:25.240 --> 0:13:27.679
<v Speaker 15>and you know, like I think would be good to

0:13:27.760 --> 0:13:30.080
<v Speaker 15>end poverty, Like maybe you think we should stop a

0:13:30.080 --> 0:13:32.319
<v Speaker 15>technology that can do that, I personally don't, but we

0:13:32.400 --> 0:13:34.560
<v Speaker 15>got to manage through the risk to get there. I

0:13:34.640 --> 0:13:39.200
<v Speaker 15>also think at this point, given how much people see

0:13:39.240 --> 0:13:43.200
<v Speaker 15>the economic benefits and potential, no company could stop it.

0:13:43.800 --> 0:13:47.080
<v Speaker 15>But global regulation which I only think should be on

0:13:47.120 --> 0:13:51.680
<v Speaker 15>these like powerful existential risk level systems. Global regulation is hard,

0:13:52.040 --> 0:13:54.520
<v Speaker 15>and you know you don't want to overdo it for sure,

0:13:54.960 --> 0:13:58.040
<v Speaker 15>But I think global regulation can help make it safe,

0:13:58.200 --> 0:13:59.640
<v Speaker 15>which is a better answer than stopping it.

0:14:00.000 --> 0:14:01.200
<v Speaker 8>So don't think stopping it would work.

0:14:01.400 --> 0:14:04.079
<v Speaker 16>Let's talk about the global regulation. You've been around the

0:14:04.080 --> 0:14:06.720
<v Speaker 16>world meeting with regulators. You met with President Biden and

0:14:06.760 --> 0:14:10.840
<v Speaker 16>the CEOs of Microsoft and Google, and you're calling for regulation,

0:14:10.960 --> 0:14:14.640
<v Speaker 16>but with some caveats. The critics say it sounds like

0:14:14.679 --> 0:14:17.760
<v Speaker 16>you're saying regulate us but not really, or that you

0:14:18.000 --> 0:14:22.080
<v Speaker 16>are calling for regulation in public but lobbying for something

0:14:22.120 --> 0:14:23.000
<v Speaker 16>else in private.

0:14:23.160 --> 0:14:25.960
<v Speaker 8>How would you respond to that, we're pushing for it

0:14:25.960 --> 0:14:26.880
<v Speaker 8>in private too.

0:14:27.040 --> 0:14:30.400
<v Speaker 15>I mean, obviously we have some opinions about the ways

0:14:30.480 --> 0:14:33.720
<v Speaker 15>to do it that'll be effective and that will be ineffective. We,

0:14:33.880 --> 0:14:37.040
<v Speaker 15>for example, don't think small startups and open source models

0:14:37.160 --> 0:14:41.160
<v Speaker 15>below a certain very high capability threshold should be subject

0:14:41.200 --> 0:14:44.920
<v Speaker 15>to a lot of regulation. But also we think it

0:14:45.040 --> 0:14:47.800
<v Speaker 15>is super important that as we think about a system

0:14:47.840 --> 0:14:49.360
<v Speaker 15>that could be at a risk level like you were

0:14:49.360 --> 0:14:53.200
<v Speaker 15>talking about, that we have a global and as a

0:14:53.280 --> 0:14:57.000
<v Speaker 15>coordinated response as possible so we've been talking about that

0:14:57.320 --> 0:14:59.520
<v Speaker 15>publicly privately, I think it's really important.

0:15:00.320 --> 0:15:00.560
<v Speaker 3>You know.

0:15:00.600 --> 0:15:03.720
<v Speaker 15>You could like point out that it's we're like trying

0:15:03.760 --> 0:15:07.680
<v Speaker 15>to do regulatory capture here or whatever, but I just don't.

0:15:08.480 --> 0:15:11.440
<v Speaker 15>I think that's like so transparently intellectually dishonest.

0:15:11.480 --> 0:15:12.560
<v Speaker 8>I don't even know how to respond.

0:15:13.680 --> 0:15:16.800
<v Speaker 16>You have an incredible amount of power at this moment

0:15:16.840 --> 0:15:17.240
<v Speaker 16>in time.

0:15:17.840 --> 0:15:20.440
<v Speaker 8>Why should we trust you?

0:15:20.440 --> 0:15:24.320
<v Speaker 15>You shouldn't, you know, mean for a long time public talking,

0:15:24.400 --> 0:15:27.280
<v Speaker 15>I'd rather be in the office working, But I think

0:15:27.440 --> 0:15:30.760
<v Speaker 15>at this moment in time, like people deserve basically as

0:15:30.840 --> 0:15:33.600
<v Speaker 15>much time asking questions as they want, and I'm trying

0:15:33.600 --> 0:15:35.360
<v Speaker 15>to show up and do it. But more to that,

0:15:35.920 --> 0:15:38.880
<v Speaker 15>like no one person should be trusted here. I don't

0:15:38.880 --> 0:15:42.400
<v Speaker 15>have super voting shares. I don't want them. The board

0:15:42.400 --> 0:15:44.440
<v Speaker 15>can fire me. I think that's important. I think the

0:15:44.480 --> 0:15:47.720
<v Speaker 15>board over time needs to get like democratized to all

0:15:47.760 --> 0:15:50.440
<v Speaker 15>of humanity. There's many ways that could be implemented. But

0:15:50.560 --> 0:15:53.120
<v Speaker 15>the reason for our structure, and the reason it's so weird,

0:15:53.320 --> 0:15:56.600
<v Speaker 15>is we think this technology, the benefits, the access to it,

0:15:56.640 --> 0:15:59.000
<v Speaker 15>the governance of it, belongs to humanity.

0:15:58.640 --> 0:15:59.160
<v Speaker 8>As a whole.

0:15:59.560 --> 0:16:02.360
<v Speaker 15>If this really works, it's like quite a powerful technology,

0:16:02.400 --> 0:16:04.200
<v Speaker 15>and you should not trust one company.

0:16:04.240 --> 0:16:05.440
<v Speaker 8>It's certainly not one person.

0:16:08.160 --> 0:16:11.080
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