WEBVTT - Chair Powell's Tariff Concerns; Harvard Pushes Back on Trump

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

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<v Speaker 2>Good morning, I'm John Tucker 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>And Karen, futures are getting a lift on this last

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<v Speaker 3>trading day, the holiday shortened week. On optimism over trade talks,

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<v Speaker 3>President Trump's negotiators made quote big progress in a meeting

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<v Speaker 3>with Japanese officials. We're seeking to avoid higher levies that

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<v Speaker 3>he's threatened against US trading partners. Let's get more from Bloomberg.

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<v Speaker 3>Tokyo Bureau a chief Isabelle Reynolds.

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<v Speaker 4>Japan's negotiator. Akazawa has been the focus of global attention

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<v Speaker 4>really because he's been first in the line to try

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<v Speaker 4>and get a reprieve from these global tariffs. He was

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<v Speaker 4>preparing for talks with the Commerce Secretary and the Treasury

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<v Speaker 4>Secretary while he was on his way to Washington. Suddenly

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<v Speaker 4>Trump announces, oh, I'm going to be part of these negotiations.

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<v Speaker 4>So that must have been rather a shock for him.

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<v Speaker 4>It's rather unclear what actually happened in the end. About

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<v Speaker 4>what seems to have happened, in fact, is that Akazawa

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<v Speaker 4>went to the White House and had brief talks with

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<v Speaker 4>Trump ahead of the actual negotiations.

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<v Speaker 3>Bloomberg'szi Isabelle Reynolds says the talks did not result in

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<v Speaker 3>an immediate halt on the terrace, but preparations are underway

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<v Speaker 3>for a second round of talks to take place later

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<v Speaker 3>this month.

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<v Speaker 2>Well John Chinese President Xijin Pang is making a diplomatic

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<v Speaker 2>push to counter US pressure on nations to limit trade

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<v Speaker 2>ties with Beijing. He is wrapping up a three nation

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<v Speaker 2>tour of Southeast Asia, and she promoted the idea of

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<v Speaker 2>a quote Asian family and called for regional unity.

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<v Speaker 3>And Goldman Sachs as US investors could be forced to

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<v Speaker 3>offload up to eight hundred billion dollars in Chinese docks

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<v Speaker 3>in a worst case financial decoupling with China. In the

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<v Speaker 3>same scenario, Chinese investors might need to up unload their

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<v Speaker 3>US financial assets, which could amount to one point seven trillion.

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<v Speaker 3>And Carlisle Group CEO Harvey Schwartz says that global economic

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<v Speaker 3>growth relies on the two countries finding a work together.

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<v Speaker 5>I don't think it's a good outcome if the number

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<v Speaker 5>one and two largest economies in the world haven't found

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<v Speaker 5>an equilibrium around cooperation. It's really critical for the global

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<v Speaker 5>economy and for trade that we and China find a

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<v Speaker 5>place of cooperation and equilibrium. And I think the faster

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<v Speaker 5>that can happen, the better it is for all business

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<v Speaker 5>activity globally, especially in the United States.

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<v Speaker 3>Carlota Groups CEO Schwartz was speaking to Shinali Bask for

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<v Speaker 3>Bloomberg Original's upcoming series Bullish.

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<v Speaker 2>Well, John, we turned to the markets now, and futures

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<v Speaker 2>are higher. Following yesterday's sell off on Wall Street, the

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<v Speaker 2>S and P five hundred drop two and a quarter

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<v Speaker 2>percent of the Nasdaq fell three percent after ved share j.

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<v Speaker 2>Powell said trade tensions risk undermining the Fed's employment and

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<v Speaker 2>inflation goals. Powell spoke at the Economic Club of Chicago.

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<v Speaker 6>The level of tariff increases announced so far is significantly

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<v Speaker 6>larger than anticipated, and the same is likely to be

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<v Speaker 6>true of the economic effects, which will include higher inflation

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<v Speaker 6>and slower growth.

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<v Speaker 2>Powser marks are in live here on Bloomberg, reinforce a

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<v Speaker 2>message he has repeatedly emphasized. FED officials are in no

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<v Speaker 2>hurry to change the Central Bank's benchmark policy rate. The

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<v Speaker 2>Fed next to Side's on May seventh.

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<v Speaker 3>In Monetary policy, also and focus this morning overseas, the

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<v Speaker 3>European Central Banks center making an interust rate decision. Now,

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<v Speaker 3>let's get the very latest from Bloomberg to you on

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<v Speaker 3>parts in London.

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<v Speaker 7>You won good morning, John and Karen.

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<v Speaker 8>While the Fed may be in no hurry to change rates,

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<v Speaker 8>that is exactly what we're expecting today from Frankfurt. Sixty

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<v Speaker 8>one of sixty two economists in Bloomberg's survey reckon the

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<v Speaker 8>European Central Bank will cut rates at their lunchtime meeting.

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<v Speaker 8>That will take the deposit rate from two and a

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<v Speaker 8>half to two and a quarter percent. The threat of

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<v Speaker 8>swinging tarists from the United States putting pay to any

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<v Speaker 8>talk of a pause at this meeting, and investors expect

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<v Speaker 8>at least two more rate cuts later this year. But

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<v Speaker 8>you won't be surprised to hear there is a lot

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<v Speaker 8>of uncertainty around the outlook in London.

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<v Speaker 7>I'm YOUU and pots Bloomberg Radio.

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<v Speaker 2>Are you and thank you?

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<v Speaker 4>Well.

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<v Speaker 2>Back here in the USh, the government's anti trust trial

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<v Speaker 2>taking a breakoup Meta Platforms continues today. Now, some may

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<v Speaker 2>think about a Platforms as a giant conglomerate, but according

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<v Speaker 2>to Mark Zuckerberg, the company is fighting for its survival

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<v Speaker 2>begin more with Bloomberg's Denise Pelle Greeney and.

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<v Speaker 9>A marathon three days of testimony in the Federal Trade

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<v Speaker 9>Commission's trial to break up Meta, the CEO of the

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<v Speaker 9>company that owns Facebook, Insta, WhatsApp, and Threads, testified Facebook

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<v Speaker 9>is fighting for its existence even when it's ahead. The

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<v Speaker 9>FTC wants to force Meta to sell off Insta and WhatsApp,

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<v Speaker 9>citing emails and documents that suggest Meta bought the companies

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<v Speaker 9>to eliminate competitive threads. But Zuckerberg and Meta's lawyers say

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<v Speaker 9>staying alive in the fast moving world of social media

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<v Speaker 9>requires staying nimble, and they also say the acquisitions didn't

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<v Speaker 9>harm competition. The outcome of the trial is uncertain. Denise

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<v Speaker 9>Pellogrity Bloomberg Radio.

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<v Speaker 3>Thanks Denise and shares of Hurtz. They are driving higher

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<v Speaker 3>this morning. In fact, they're storing twenty five percent. CNBC

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<v Speaker 3>is reporting Bill ac Coman's Pershing Square Capital Management has

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<v Speaker 3>a massed position of almost twenty percent of the car

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<v Speaker 3>rental Company.

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<v Speaker 2>And finally, John Harvard University's refusal to comply with a

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<v Speaker 2>Trump administration deal to require it to reform its governance

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<v Speaker 2>and and diversity programs is resulting in retribution the administration's

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<v Speaker 2>freezing funding of two point two billion dollars of multi

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<v Speaker 2>year grants. Accusing Harvard of mishandling antisemitism on campus, President

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<v Speaker 2>Trump said this school should lose its tax exempt status,

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<v Speaker 2>and several outlets reported that the IRS is considering the issue.

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<v Speaker 2>But Larry Summers, former US Treasury Secretary and former president

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<v Speaker 2>at Harvard, tells Bloomberg the university needed to push back

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<v Speaker 2>on the administration's requests.

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<v Speaker 10>Harvard should not go interjecting itself into politics, but god,

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<v Speaker 10>when it is the object of an extra legal set

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<v Speaker 10>of orders and threats, I don't think it had any

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<v Speaker 10>viable choice at all but to respond us strongly.

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<v Speaker 2>And Former US Treasury Secretary Larry Summers also told Bloomberg

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<v Speaker 2>that President Trump's actions toward Harvard are part of an

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<v Speaker 2>effort to suppress institutions that challenge his administration. You can

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<v Speaker 2>catch David Weston's full conversation with Summers on the Bloomberg

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<v Speaker 2>podcast page on YouTube. Time now for a look at

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

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<v Speaker 2>and around the world, and for that we're joined by

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<v Speaker 2>Bloomberg's Michael Barr Michael, Good Morning.

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<v Speaker 11>Good morning, Karen. Federal John said there is probable cause

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<v Speaker 11>to hold Trump administration officials in criminal contempt of court

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<v Speaker 11>for sending accused Venezuelan gang members to an El Salvador

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<v Speaker 11>prison last month. Despite his order to immediately halt the deportations.

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<v Speaker 11>US District Judge James Bosberg issued in orders saying that

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<v Speaker 11>officials acted in willful disregard. The administration plans to appeal

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<v Speaker 11>the ruling. Maryland Senator Chris van Holland has flown to L.

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<v Speaker 11>Salvador to find out more about Kilmar Abrego Garcia's detention.

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<v Speaker 11>The Maryland man was being detained in the notorious L.

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<v Speaker 11>Salvador prison after he was deported last month. A federal

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<v Speaker 11>judge found of Brego Garcia's detention unlawful and ordered the

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<v Speaker 11>administration to facilitate his return to the US. Van Hollins

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<v Speaker 11>says he had met with US embassy personnel and Salvadoran officials.

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<v Speaker 12>This is simply about letting him have his day in court.

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<v Speaker 12>We used the courts to make sure that we don't

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<v Speaker 12>convict people who are not guilty, and that we convict

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<v Speaker 12>those who are.

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<v Speaker 11>Meanwhile, the Trump administration wants a US appeals court to

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<v Speaker 11>block a judge's directive that government officials be questioned about

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<v Speaker 11>their failure to seek the return of Abrego Garcia. Attorney

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<v Speaker 11>General Pam Bondi.

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<v Speaker 1>He is not coming back to our country. President Buquelea

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<v Speaker 1>said he was not sending him back.

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<v Speaker 13>That's the end of the story.

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<v Speaker 11>Ag Bondi says the administration believes a Brego Garcia was

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<v Speaker 11>a member of MS thirteen, an allegation his family denies.

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<v Speaker 11>Ten New York prison guards have been charge in connection

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<v Speaker 11>with the fatal beating of a twenty two year old

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<v Speaker 11>prison inmate, including two charged with murder. Prisoner messiaht Natwee

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<v Speaker 11>at the Mid State Correctional Facility was sent to a

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<v Speaker 11>hospital where he died on March first, on a Daga

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<v Speaker 11>County District Attorney William Fitzpatrick.

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<v Speaker 14>The first count charges two individuals corrections officers Jonah Levy

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<v Speaker 14>and Caleb Blair, with depraved mind murder. Not an intentional murder,

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<v Speaker 14>but a murder so depraved and so wanton and disregarding

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<v Speaker 14>of human life that New York law allow us allows

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<v Speaker 14>it to rise to the level of intentional murder.

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<v Speaker 11>DA Fitzpatrick says other guards are accused of trying to

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<v Speaker 11>cover it up. Global news twenty four hours a day

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

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<v Speaker 13>I'm Michael Barn. This is Bloomberg Karen.

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

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<v Speaker 2>Bloomberg Sports Update. Here's John Stanshawer, John, good morning, want

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<v Speaker 2>to care in.

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<v Speaker 13>All good for the Yankees.

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<v Speaker 15>They got Clark Schmidt back in the rotation, pitched well

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<v Speaker 15>in his season debut. They got a seventh inning, go

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<v Speaker 15>ahead home run from Aaron Judges first homer in eleven games,

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<v Speaker 15>and a game saving diving catch and right field from

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<v Speaker 15>Clave Bellinger for the final out of a four to

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<v Speaker 15>three win over Kansas City. They sweeped the series. Play

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<v Speaker 15>tonight at Tampa Bay, too feel very much like a

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<v Speaker 15>Yankee home game. The Ray's home stadium is where the

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<v Speaker 15>Yankees play their spring training games. The Mets in Minnesota

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<v Speaker 15>helped scoreless for seven innings. They tied the game with

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<v Speaker 15>three in the eighth, but lost to the Twins four

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<v Speaker 15>to three, and ten Red Sox won one nothing the

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<v Speaker 15>Tampa Bay. David Hamilton's homer the only run Nationals lost

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<v Speaker 15>in Pittsburgh sixty to one. The Orioles won nine to

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<v Speaker 15>one over Cleveland. Jackson Holiday at a Grand Slam in

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<v Speaker 15>Toronto's three to one went over Atlanta. The Blue Jay

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<v Speaker 15>set a club record five pitchers had nineteen strikeouts.

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<v Speaker 13>The Brazman now five and thirteen.

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<v Speaker 15>NBA play in two wins with the road teams Miami

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<v Speaker 15>in Chicago. Tyler Hero scored thirty eight Dallas in Sacramento

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<v Speaker 15>as the MAVs won the second quarter by twenty five.

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<v Speaker 15>The Heat and the MAVs play tomorrow in Atlanta and

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<v Speaker 15>in Memphis to see who gets the last playoff spots.

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<v Speaker 15>Then Saturday it's the Nixon Pistons Game one at the Garden.

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<v Speaker 15>Detroit won only fourteen games last season, forty four wins

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<v Speaker 15>this year.

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<v Speaker 13>The Knicks coach is Tom Dibbodell.

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<v Speaker 16>They've had a great season. I think, you know, Jab's

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<v Speaker 16>done a great job there that they added the I

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<v Speaker 16>think really good veterans to compliment you know, the young

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<v Speaker 16>players that they have in a lot of their guys

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<v Speaker 16>that made big steps. You look at the development of

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<v Speaker 16>Duran and you know Stewart and you know obviously obviously

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<v Speaker 16>one is Cunningham.

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<v Speaker 15>Yeah, all Kid Cunningham did this season is an average

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<v Speaker 15>twenty six points, six rebounds, and nine assists per game.

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<v Speaker 15>Last Stanley Cup Loundspot goes to Montreal this after the

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<v Speaker 15>Canadians went only eight of their first twenty four games.

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<v Speaker 13>John Stashanwler Bloomberg Sports Karen John.

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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 Appum, this is Bloomberg Day Break.

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<v Speaker 3>Hey, that brings this to five twelve. On Wall Street,

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<v Speaker 3>the markets they continue to be whips on by trade uncertainty,

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<v Speaker 3>and let's try to get a handle on where things

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<v Speaker 3>stand right now with Bloomberg Senior editor Bill Ferry's joining

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<v Speaker 3>us this morning. Bill, thanks for being with us. Wall

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<v Speaker 3>Street seems to be grasping at some positive signs in

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<v Speaker 3>the trade talks between the US and Japan. Let me

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<v Speaker 3>put the question out there, is that hope well placed

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<v Speaker 3>this morning?

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<v Speaker 12>Yeah?

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<v Speaker 7>I think the jury is out on that.

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<v Speaker 17>President Trump going online yesterday to say that, you know,

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<v Speaker 17>big progress, big progress had been made in the trade

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<v Speaker 17>talks with the Japanese team, and definitely this Japanese delegation

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<v Speaker 17>is being seen as a test case by dozens of

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<v Speaker 17>countries that are hoping to see just what it will

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<v Speaker 17>take to strike a deal with the Trump administration. But

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<v Speaker 17>I got to point out it was a very relatively

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<v Speaker 17>short meeting for a trade negotiation. The top Japanese to

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<v Speaker 17>go met with Trump for about fifty minutes, and then

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<v Speaker 17>he met with officials from Treasury in Commerce for just

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<v Speaker 17>over an hour, about an hour and fifteen minutes. So

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<v Speaker 17>usually trade deals are really detailed back and forth negotiations

0:12:13.520 --> 0:12:17.680
<v Speaker 17>that take hundreds of hours and weeks. So they have

0:12:17.800 --> 0:12:21.120
<v Speaker 17>scheduled a second round of meetings later in this month.

0:12:21.559 --> 0:12:25.320
<v Speaker 17>But that ninety day clock that President Trump put on

0:12:25.480 --> 0:12:29.040
<v Speaker 17>reaching deals with other countries is already ticking.

0:12:29.400 --> 0:12:32.880
<v Speaker 3>And to be sure, the levies remain in place for

0:12:33.000 --> 0:12:34.960
<v Speaker 3>Japan at this juncture.

0:12:35.520 --> 0:12:37.920
<v Speaker 7>That's right. What Japan is wanting to do.

0:12:38.559 --> 0:12:42.560
<v Speaker 17>They want to see the full twenty four percent tariffs,

0:12:42.559 --> 0:12:46.480
<v Speaker 17>the reciprocal so called reciprocal tariffs wiped away. They'd like

0:12:46.520 --> 0:12:50.880
<v Speaker 17>to see that ten percent kind of baseline tariff also gone.

0:12:51.280 --> 0:12:53.280
<v Speaker 17>And those are the kind of things I think investors

0:12:53.480 --> 0:12:55.480
<v Speaker 17>and the markets are going to really be looking at

0:12:55.600 --> 0:12:58.080
<v Speaker 17>when they finally if they finally come to a deal,

0:12:58.120 --> 0:13:00.520
<v Speaker 17>they're going to see is it possible? Well, how far

0:13:00.559 --> 0:13:04.560
<v Speaker 17>back can you roll these tariffs? How far is President

0:13:04.600 --> 0:13:05.600
<v Speaker 17>Trump willing to go?

0:13:06.240 --> 0:13:09.600
<v Speaker 3>That's Japan or talks with other countries right now going on?

0:13:10.640 --> 0:13:14.760
<v Speaker 17>Well, the administration says that there are talks maybe at

0:13:14.840 --> 0:13:18.200
<v Speaker 17>lower levels taking place. We know South Korea is preparing

0:13:18.240 --> 0:13:21.720
<v Speaker 17>to send a delegation. We've heard Scott Bessett talking about

0:13:21.720 --> 0:13:26.840
<v Speaker 17>countries like Argentina and even India being near the near.

0:13:26.679 --> 0:13:27.680
<v Speaker 7>The front of the queue.

0:13:27.679 --> 0:13:31.280
<v Speaker 17>But in terms of the substantive talks, President Trump said

0:13:31.280 --> 0:13:33.560
<v Speaker 17>he wants to sign off on all these deals he

0:13:33.600 --> 0:13:36.520
<v Speaker 17>popped into this meeting with the Japanese. For him to

0:13:36.559 --> 0:13:38.840
<v Speaker 17>do so with all these other countries is definitely going

0:13:38.880 --> 0:13:39.720
<v Speaker 17>to take a lot of time.

0:13:40.000 --> 0:13:40.400
<v Speaker 13>Okay.

0:13:40.440 --> 0:13:43.600
<v Speaker 3>At the same time, fedch Heir Howell doesn't sound like

0:13:43.679 --> 0:13:45.839
<v Speaker 3>he's going to ride to the rescue as the trade

0:13:45.840 --> 0:13:48.200
<v Speaker 3>work continues. What's happening on that front.

0:13:49.000 --> 0:13:51.800
<v Speaker 17>Well, he's definitely signaling kind of a wait and see

0:13:51.800 --> 0:13:54.319
<v Speaker 17>approach here so far. Even though I think the markets

0:13:54.320 --> 0:13:57.840
<v Speaker 17>have been pricing in between three and four rate cuts

0:13:57.840 --> 0:14:01.160
<v Speaker 17>this year, he said that, you know, the FED needs

0:14:01.200 --> 0:14:04.760
<v Speaker 17>to see price stability before they really make a move

0:14:05.200 --> 0:14:08.760
<v Speaker 17>that he wants to make sure that inflation, the bump

0:14:08.880 --> 0:14:12.880
<v Speaker 17>up and inflation expected from tariffs, doesn't become a longer

0:14:12.960 --> 0:14:16.360
<v Speaker 17>term problem. Remember the FED got burned during the pandemic

0:14:16.640 --> 0:14:21.040
<v Speaker 17>when they said that the inflation was temporary or it

0:14:21.160 --> 0:14:26.240
<v Speaker 17>was in a transition, transitory. After the pandemic was winding down,

0:14:26.320 --> 0:14:29.920
<v Speaker 17>it wasn't transitory. It climbed higher. It became a political problem,

0:14:29.960 --> 0:14:32.760
<v Speaker 17>became an economic problem. They don't want that to happen again.

0:14:32.800 --> 0:14:34.920
<v Speaker 17>So they're really more in a wait and see mode.

0:14:35.240 --> 0:14:38.600
<v Speaker 3>It's hard to dealing trade in foreign relations. The Chinese

0:14:38.640 --> 0:14:41.800
<v Speaker 3>president Hujinping, he's not a three nation Southeast Asia tour,

0:14:42.320 --> 0:14:46.000
<v Speaker 3>and the message there seems to be you can't rely

0:14:46.080 --> 0:14:48.360
<v Speaker 3>on the US, but you can rely on us.

0:14:49.360 --> 0:14:49.640
<v Speaker 7>Yeah.

0:14:49.640 --> 0:14:53.600
<v Speaker 17>So Shei Jinping in Cambodia today. He's already visited Malaysia

0:14:54.360 --> 0:14:57.760
<v Speaker 17>and Vietnam. Those are countries that also have a good

0:14:57.760 --> 0:15:01.000
<v Speaker 17>trading relationships with the US and va Nom in particular

0:15:01.080 --> 0:15:04.800
<v Speaker 17>has become a place where supply chains have been re

0:15:05.000 --> 0:15:09.680
<v Speaker 17>routing as companies tried to move out of China. Now

0:15:10.160 --> 0:15:12.440
<v Speaker 17>a lot of those countries are starting to have a

0:15:12.520 --> 0:15:15.720
<v Speaker 17>second look at China, seeing it as perhaps a more

0:15:15.760 --> 0:15:19.840
<v Speaker 17>stable economic partner to have, and they're also worried about

0:15:20.160 --> 0:15:23.080
<v Speaker 17>these same reciprocal tariffs and some of the other trade

0:15:23.080 --> 0:15:24.960
<v Speaker 17>issues that the US is bringing up.

0:15:25.000 --> 0:15:27.120
<v Speaker 7>So it'll be very interesting to see where that develops.

0:15:27.280 --> 0:15:30.720
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