WEBVTT - Trump Chip Tariffs; OpenAI and Broadcom Take on Nvidia

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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

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<v Speaker 3>Karen, we begin with trade this morning. In the latest

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<v Speaker 3>announcement from President Donald Trump, as heard live on Bloomberg Radio,

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<v Speaker 3>the President says tariffs on semiconductor imports are coming soon.

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<v Speaker 4>Chips and semiconductors will be putting tariffs on companies that

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<v Speaker 4>aren't coming in. We'll be putting a tariff very shortly,

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<v Speaker 4>probably our hearing. We'll be putting a fairly substantial tariff

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<v Speaker 4>on not that high, but fairly substantial tariff.

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<v Speaker 3>President Trump says the levies could spare companies like Apple,

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<v Speaker 3>which have pledged to boost investments in the United States.

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<v Speaker 3>The President previously suggested the tariff rate on ships could

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<v Speaker 3>be well above one hundred percent, reaching potentially two hundred

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<v Speaker 3>or three hundred percent.

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<v Speaker 2>Well, Nathan, President Trump was speaking at a White House

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<v Speaker 2>dinner attended by some of the world's biggest tech leaders.

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<v Speaker 2>The guest list ranged from Apple's Tim Cook, open Ai,

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<v Speaker 2>Sam Altman, and Google Sundar Peshai, and sitting beside the

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<v Speaker 2>President was metis Markus Zuckerberg. He was pressed by the

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<v Speaker 2>President on the company's US investments.

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<v Speaker 4>How much are you spending would you say over the

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<v Speaker 4>next few years?

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<v Speaker 5>Oh, gosh, I mean I think it's probably going to

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<v Speaker 5>be something like, I don't know, at least six hundred

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<v Speaker 5>billion dollars through twenty eight in the US.

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<v Speaker 2>Yeah, to met As Mark Zuckerberg speaking at the White

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<v Speaker 2>House earlier Thursday, many of the same executives joined First

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<v Speaker 2>Lady Malania Trump for a discussion on AI.

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<v Speaker 3>And we have a major new development potentially in the

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<v Speaker 3>AI space this morning, Karen, We've learned that open ai

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<v Speaker 3>is partnering with Broadcom to design and produce artificial intelligence

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<v Speaker 3>chips and what would be a direct challenge to Nvidia.

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<v Speaker 3>Bloomberg News is reporting the first accelerator chips that begins

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<v Speaker 3>show next year. Broadcom CEO told investors on his latest

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<v Speaker 3>earnings call that the company's AI outlook will improve significantly

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<v Speaker 3>next year, with expected revenue from semiconductors to reach more

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<v Speaker 3>than six billion dollars in the fourth quarter.

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<v Speaker 2>Nathan, let's turn to the economy now. In today's critical

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<v Speaker 2>jobs report, which could cement a rate cut at this

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<v Speaker 2>month's FED meeting, markets are currently pricing in a quarter

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<v Speaker 2>point cut in September. Speaking at a fireside chat yesterday,

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<v Speaker 2>Chicago Fed President Austin Goulesby said the number will be important,

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<v Speaker 2>but stressed he's looking at a broad range of data points.

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<v Speaker 6>I'm one of the data dogs, so you're never going

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<v Speaker 6>to hear me say throw away a number and pay

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<v Speaker 6>no attention to it.

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<v Speaker 7>But I'm just going to index on that.

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<v Speaker 6>Number tomorrow morning, a little bit less than we normally would.

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<v Speaker 2>Chicago Fed President Austin Goulesby says if the job market

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<v Speaker 2>shows further deterioration, it could be assigned to loosen monetary policy.

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<v Speaker 2>The August Jobs report drops at eight thirty Wall Street Time.

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<v Speaker 2>Please stick with Bloomberg for live coverage to the data

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<v Speaker 2>on blue Burg Surveillance with Tom Keen and Paul Sweeney

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<v Speaker 2>on Bloomberg Radio and the Bloomberg Podcast page on YouTube.

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<v Speaker 3>Well, Karen Golsby's not the only Fed speaker talking about

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<v Speaker 3>raid cuts. New York Fed President John Williams says the

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<v Speaker 3>Central Bank is facing a delicate balancing act when it

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<v Speaker 3>comes to policy.

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<v Speaker 8>We need to keep the labor market in balance to

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<v Speaker 8>ensure that the effects of terrorists do not spill over

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<v Speaker 8>into a longer lasting broad increase interflation. On the other hand,

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<v Speaker 8>maintaining a stance of too restricted policy for too long

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<v Speaker 8>could increase risks to a maximum employment mandate.

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<v Speaker 3>New York Fed President John Williams says the impact of

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<v Speaker 3>tariff's on inflation has been less than originally feared. He

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<v Speaker 3>says the labor market is undergoing gradual cooling consistent with

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<v Speaker 3>a slowdown in the economy.

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<v Speaker 2>And we turned out to New York City's mayoral race.

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<v Speaker 2>The New York Times is reporting Nathan that Mayor Eric

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<v Speaker 2>Adams told Confidence that he's weighing job opportunities that would

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<v Speaker 2>prompt him to abandon his re election bid. Reports indicate

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<v Speaker 2>Adams had been in talks with advisor to President Trump

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<v Speaker 2>about a potential job if he quits the race, which

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<v Speaker 2>he's denied. President Trump wade in on the race at

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<v Speaker 2>the White House last night.

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<v Speaker 4>I would like to see two people drop out and

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<v Speaker 4>have it be one on one, and I think that's

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<v Speaker 4>a race they could be one.

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<v Speaker 2>The President emphasized he'd prefer not to have a communist

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<v Speaker 2>mayor of New York City, referring to current Democratic front

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<v Speaker 2>runners are run Mom Donnie for full transparency. Michael Bloomberg,

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<v Speaker 2>founder a majority owner of Bloomberg LP, the parent company

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<v Speaker 2>oft Bloomberg Radio, has endorsed Andrew Cuomo in the mayor's race.

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<v Speaker 3>What's turned out care into the latest and President Trump's

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<v Speaker 3>efforts to oust FED Governor Lisa Cook. The Justice Department

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<v Speaker 3>has opened a criminal investigation into whether Cook committed mortgage fraud,

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<v Speaker 3>sources tell Bloomberg. Federal prosecutors have issued subpoenas relating to

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<v Speaker 3>allegations that Cook misrepresented information on mortgage applications. Last month,

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<v Speaker 3>the President said he was removing Cook after Federal Housing

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<v Speaker 3>Finance Agency Director Bill Poulti accused her of mortgage fraud.

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<v Speaker 3>Cook is suing her lawyer denies the charge and says

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<v Speaker 3>the President lacks valid grounds to remove her, and in

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<v Speaker 3>a filing late last night, Cook said a court ruling

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<v Speaker 3>in favor of Harvard University backs her argument that President

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<v Speaker 3>Trump's attempt to fire her is a pretext.

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<v Speaker 2>At the same time, Nathan, President Trump is asking the

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<v Speaker 2>Supreme Corps to let him fire FTC Commissioner Rebecca Kelly Slaughter,

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<v Speaker 2>testing a nineteen thirty five Supreme Court ruling that said

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<v Speaker 2>Congress could insulate high ranking officials from being fired. The

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<v Speaker 2>filing follows a federal appeals court decision reinstating Slaughter, who

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<v Speaker 2>is challenging Trump's attempt to alster. Trump sought to remove

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<v Speaker 2>Slaughter from her position in March. She sued, arguing that

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<v Speaker 2>her olster flouted the FTC Act, which says a president

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<v Speaker 2>can remove commissioners only for cause.

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<v Speaker 3>On Capitol Hillcare and there are plenty of fireworks at

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<v Speaker 3>multiple hearings, one involving President Trump's FED pick Stephen Myron,

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<v Speaker 3>the President selected as chair of the White House Council

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<v Speaker 3>of Economic Advisors to fill Adriana Coogler's seat on the

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<v Speaker 3>FED Board. Democrats raised concern that because Myron says he

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<v Speaker 3>wants to keep his White House job while serving at

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<v Speaker 3>the FED, that could compromise Central Bank independence. Myron addressed

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<v Speaker 3>those concerns during Bloomberg's live coverage of the hearing.

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<v Speaker 9>The President nominated me because I have policy views that

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<v Speaker 9>I suppose that he liked. If I'm confirmed to this role,

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<v Speaker 9>I will act independently as the Federal Reserve always does,

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<v Speaker 9>based on my own personal analysis of economic data, my

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<v Speaker 9>own personal analysis of the effects of economic policies upon

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<v Speaker 9>the economy and act based on my judgment of my

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<v Speaker 9>judgment of the best economic policy possible.

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<v Speaker 3>Stephen Myron says he spent much of his career studying

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<v Speaker 3>monetary policy. Last year, he wrote a paper detailing numerous

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<v Speaker 3>proposals to overhaul the FED.

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<v Speaker 2>Meanwhile, Nathan Health and Human Services Secretary Robert F. Kennedy

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<v Speaker 2>Junior was criticized by Democrats and some Republicans. At his hearing.

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<v Speaker 2>Senators challenged Kennedy's changes to federal health agencies, including overhauling

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<v Speaker 2>a key vaccine advisory and slashing you a support for

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<v Speaker 2>global immunization efforts. He had a heated exchange about COVID

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<v Speaker 2>with Democratic Senator Mark Warner of Virginia.

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<v Speaker 7>There was so much.

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<v Speaker 10>Data chaos coming out of the CDC, and it would

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<v Speaker 10>all take.

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<v Speaker 4>Out incentives and these are modeling.

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<v Speaker 10>You know, I know the answer of how many America

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<v Speaker 10>side from COVID. This is the Secretary of Health and

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<v Speaker 10>Human Services.

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<v Speaker 2>Senator Mark Warner addressed the hearing with Bloomberg afterwards.

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<v Speaker 10>This guy promised that he was going to follow science,

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<v Speaker 10>not you know, across the board fire experts he's on.

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<v Speaker 10>It feels like a persh against any of the respective scientists.

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<v Speaker 2>Virginia Senator Mark Warner was speaking on Bloomberg's Spellance of Power,

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<v Speaker 2>and it's time no off for a look at some

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<v Speaker 2>of the other stories making news in New York and

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<v Speaker 2>around the world. And for that we're joined by Bloomberg's

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<v Speaker 2>Michael Barr Michael, Good.

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<v Speaker 11>Morning, Good morning, Karen. Massachusetts Governor Mara Heally says the

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<v Speaker 11>Bay State will vaccines available to its residents no matter

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<v Speaker 11>what happens at the federal level. That means insurance carriers

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<v Speaker 11>will have to cover vaccinations required by the States Department

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<v Speaker 11>of Public Health, no matter what is recommended at the

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<v Speaker 11>federal level. The move comes after AJHS Secretary Robert F.

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<v Speaker 11>Kennedy junior fire the CDC director, restructured the department and

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<v Speaker 11>attacked doctor groups that recommended vaccinations. Heally says they won't

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<v Speaker 11>let the Trump administration get between doctors and patients.

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<v Speaker 7>We're forced to do this as states because of the

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<v Speaker 7>abdication of responsibility by the federal government, and so we've

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<v Speaker 7>worked quickly here in Massachusetts.

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<v Speaker 3>We've worked with other states.

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<v Speaker 7>We're going to invite other states to join our coalition

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<v Speaker 7>so that there is more of a consensus.

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<v Speaker 11>Governor Healy says no one in Massachusetts is going to

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<v Speaker 11>be denied because of cost. Josh Kraft is contributing an

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<v Speaker 11>additional three point five million dollars to his campaign to

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<v Speaker 11>unsea Boston Mayor Michelle Wo, The son of billionaire New

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<v Speaker 11>England Patriots owner Robert Craft, has spent a total of

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<v Speaker 11>five point five million dollars of his own fortune on

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<v Speaker 11>the campaign, which has also been funded by donations from

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<v Speaker 11>his father's friends and associates. Despite out spending his opponent,

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<v Speaker 11>Craft trails Woo by thirty points in a recent poll.

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<v Speaker 11>The thirty day deployment of the National Guard in Washington,

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<v Speaker 11>d C has been extended until at least the end

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<v Speaker 11>of November. Brigadier General Leland Blanchard made the announcement via

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<v Speaker 11>social media.

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<v Speaker 6>I've made the decision to extend the encampment as we

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<v Speaker 6>continue to work to ensure that everyone that walks through

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<v Speaker 6>these city streets is safe.

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<v Speaker 11>The order applies only to the DC National Guard, not

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<v Speaker 11>those sent from other states. Rhode Island and Connecticut sue

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<v Speaker 11>the Trump administration over its order blocking further construction of

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<v Speaker 11>a nearly completed offshore wind farm meant to provide power

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<v Speaker 11>to the two New England states. The States asked a

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<v Speaker 11>federal judge to vacate to stop work order the administration

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<v Speaker 11>issued against the revolution Win Project located off the coast

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<v Speaker 11>of Rhode Island. Global News twenty four hours a day

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<v Speaker 11>and whenever you want it with the Bloomberg News Now

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<v Speaker 11>Michael Barr and this is Bloomberg Karen.

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<v Speaker 2>Thanks Michael. Time now for our Bloomberg Sports up, Hey,

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<v Speaker 2>and for that we bring in John stash.

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<v Speaker 6>Hour, Thanks Daring. The first game of the NFL season

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<v Speaker 6>included a lightning delay of more than an hour in Philadelphia.

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<v Speaker 6>The Eagles and Cowboys had a lot of scoring before

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<v Speaker 6>the delay that came in the third quarter. None afterwards,

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<v Speaker 6>Philadelphia beat Dallas twenty four to twenty. Arena Sabalenka and

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<v Speaker 6>Amanda in Smoa both lost the first sent and won

0:10:40.240 --> 0:10:43.040
<v Speaker 6>the next two semifinal winners at the US Open. The

0:10:43.080 --> 0:10:46.360
<v Speaker 6>men's semifinals are today. Kate link Clark. Due to her injury,

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<v Speaker 6>we'll miss the rest of the WNBA season. That's a

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<v Speaker 6>Bloomberg Sports update.

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

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<v Speaker 2>after this.

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<v Speaker 1>Coast to Coast on Bloomberg Radio nationwide on Sirius XM

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

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

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<v Speaker 6>Good morning.

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<v Speaker 3>I'm Nathan Hager. Some of the biggest names in big

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<v Speaker 3>tech were over at the White House last night touting

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<v Speaker 3>their investment pledges and boosting their ties with President Donald Trump.

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<v Speaker 3>The President says he's not worried about competitors like China

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<v Speaker 3>catching up in the AI race.

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<v Speaker 4>We have the smartest people, we have the greatest technology,

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<v Speaker 4>and they can copy, but they can't create like we

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<v Speaker 4>can create.

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<v Speaker 3>And that was President Trump at a White House dinner

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<v Speaker 3>with among others, met A CEO, Mark Zuckerberg, Apples, Tim Cook,

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<v Speaker 3>and Satya Nadella of Microsoft and comments. Heard live on

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<v Speaker 3>Bloomberg Radio this morning. We're joined by Bloomberg's Valerie Titel

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<v Speaker 3>and Vali guess. One of the biggest headlines to come

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<v Speaker 3>out of the dinner last night as President Trump once

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<v Speaker 3>again saying substantial tariffs on chip imports are coming very soon.

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<v Speaker 3>But is this much different from what we've heard from

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<v Speaker 3>the President in the past.

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<v Speaker 6>Good morning.

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<v Speaker 7>Honestly, it's not, because he's still touted that some companies

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<v Speaker 7>like Apple will be carved out of these tariffs that

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<v Speaker 7>he was foreshadowing could be coming shortly, him noting specifically

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<v Speaker 7>that Tim Cook will be in pretty good shape. Of course,

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<v Speaker 7>that is Apple's CEO. And with Apple achieving some of

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<v Speaker 7>those carveouts, it's also understood that some other companies with

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<v Speaker 7>their chip exports and imports, will be getting a similar

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<v Speaker 7>carve out as well, as long as they tout these

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<v Speaker 7>investments in the US. And as you mentioned, many of

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<v Speaker 7>these tech leaders in the room in the White House

0:12:28.480 --> 0:12:32.200
<v Speaker 7>doing so yesterday talking about their spending valves, their investment

0:12:33.040 --> 0:12:35.559
<v Speaker 7>into the US to build these data centers, to get

0:12:35.559 --> 0:12:39.360
<v Speaker 7>the right energy infrastructure in place to complement the boom

0:12:39.360 --> 0:12:41.280
<v Speaker 7>and AI that Trump wants to build.

0:12:41.480 --> 0:12:43.720
<v Speaker 3>Did we get a sense last night, val on what

0:12:43.760 --> 0:12:48.160
<v Speaker 3>the President's priorities are when it comes to boosting Silicon Valley.

0:12:49.440 --> 0:12:52.480
<v Speaker 7>Well, look, I think energy infrastructure is a big part

0:12:52.520 --> 0:12:55.880
<v Speaker 7>of that. We know that many regions globally do not

0:12:56.000 --> 0:12:58.760
<v Speaker 7>have the kind of energy infrastructure that is needed to

0:12:58.880 --> 0:13:02.480
<v Speaker 7>drive the data centers, so many of them pledging investments

0:13:02.480 --> 0:13:04.880
<v Speaker 7>into data centers as well. That's something that's laying the

0:13:04.920 --> 0:13:07.600
<v Speaker 7>groundwork almost for this AI boom. But I also want

0:13:07.600 --> 0:13:10.520
<v Speaker 7>to bring you attention to what's going on in the market.

0:13:10.559 --> 0:13:13.520
<v Speaker 7>This morning. We have shares of Broadcom up nearly nine

0:13:13.720 --> 0:13:15.959
<v Speaker 7>percent in pre market trade. They came out with a

0:13:16.000 --> 0:13:18.680
<v Speaker 7>beat and earnings, and this is important for the chip

0:13:18.760 --> 0:13:23.439
<v Speaker 7>sector because they also foreshadowed a pact a new customer,

0:13:23.559 --> 0:13:26.280
<v Speaker 7>Open Ai, which they'll be getting ten billion dollars of

0:13:26.320 --> 0:13:30.880
<v Speaker 7>revenue from. This is very interesting. They are partnering with

0:13:30.920 --> 0:13:35.320
<v Speaker 7>the chat GPT owner OpenAI to design and produce an

0:13:35.400 --> 0:13:38.760
<v Speaker 7>AI chip. This will be a direct challenge to Navidia's

0:13:38.800 --> 0:13:41.920
<v Speaker 7>dominance in the AI chip market, but very interesting to

0:13:41.920 --> 0:13:45.160
<v Speaker 7>see this announced and the shares of Broadcom lifting not

0:13:45.200 --> 0:13:47.840
<v Speaker 7>only the tech sector but the broader SMP index this morning.

0:13:48.120 --> 0:13:50.319
<v Speaker 3>So you our last thirty seconds, then, val, I mean,

0:13:50.360 --> 0:13:52.760
<v Speaker 3>how much of an issue could that be? Foreign Vidia?

0:13:52.800 --> 0:13:55.720
<v Speaker 3>I mean, they've really dominated this space for so long.

0:13:56.320 --> 0:13:58.559
<v Speaker 7>There's a lot of questions about that whether adding a

0:13:58.640 --> 0:14:02.240
<v Speaker 7>new competitor into the market it will suffer margins will

0:14:02.240 --> 0:14:04.600
<v Speaker 7>suffer off the back of that. But note Navidia has

0:14:04.640 --> 0:14:08.480
<v Speaker 7>some ninety five percent market share, AMD is the leader

0:14:08.520 --> 0:14:11.320
<v Speaker 7>behind that, and then Broadcom not far behind. But you

0:14:11.360 --> 0:14:14.720
<v Speaker 7>could definitely argue there needs to be more competitors in

0:14:14.800 --> 0:14:17.839
<v Speaker 7>this space to drive the cost down of these AI

0:14:17.960 --> 0:14:21.040
<v Speaker 7>chips could help Trump's AI boom, which he so desperately

0:14:21.080 --> 0:14:22.920
<v Speaker 7>wants to take place in the US.

0:14:24.400 --> 0:14:27.360
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