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Speaker 1: Live from the Bloomberg Interacted Brooker Studios. This is Bloomberg

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Speaker 1: day Break for Tuesday January. Coming up this hour, the

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Speaker 1: Justice Department may sue Google as earliest. Today, we are

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Speaker 1: live with the latest new tensions between the US and China,

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Speaker 1: this time over Russia. Microsoft gets set to report earnings

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Speaker 1: and more job cuts come to Corporate America. Another mass

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Speaker 1: shooting in California Monday leaves seven dead, plus a majority

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Speaker 1: of New Yorkers one in battle. Republican Congressman Santos to resign.

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Speaker 1: I'm Michael barn Moore a hand. I'm John stash Our

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Speaker 1: in sports arranger went over Florida. The Islanders lost in

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Speaker 1: Toronto and they're playing the quarter finals at the Australian Open.

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Speaker 1: That's All's trended ahead on Bloomberg Daybreak on Bloomberg eleven

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Speaker 1: three on New York, Bloomberg one, Washington, d C, Bloomberg

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Speaker 1: one oh six one, Boston, Bloomberg nine sixties and Francisco

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Speaker 1: Sirius x M one nine team and around the world

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Speaker 1: on Bloomberg Radio dot Com and via The Bloomberg Business.

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Speaker 1: Good morning, I'm Nathan Hagar, and I'm kerin Moscow. Here

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Speaker 1: are the stories we're following today. We begin with a

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Speaker 1: looming government lawsuit against Google. We get the latest live

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Speaker 1: now with Bloomberg Steve Rappaport, Steve, good morning, Good morning,

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Speaker 1: Nathan and Karen. The Justice Department is poised to sue

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Speaker 1: Google for antitrust violations, alleging the tech giant unfairly dominates

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Speaker 1: the digital ad market. Google has argued competition and online

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Speaker 1: ads is quite healthy, noting its rivals include other power

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Speaker 1: players like Amazon, Meta and Microsoft Alphabet's. Google is number

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Speaker 1: one in the US digital ad market, controlling technology used

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Speaker 1: to buy, sell, and service online ads. The company is

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Speaker 1: projected to bring in nearly seventy billion dollars in US

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Speaker 1: online advertising revenue this year. Live in New York, I'm

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Speaker 1: Steve Rappaport, Bloomberg Daybreak. All right, Steve, thank you. I'll

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Speaker 1: staying in Washington. Now. US China relations are in focus today.

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Speaker 1: The Biden administration has confronted Beijing with evidence sets a

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Speaker 1: j ties to Russia and support for Russia's war effort

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Speaker 1: in Ukraine. Details now from Bloomberg's Amy Morris in osroom

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Speaker 1: in Washington. Sources tell Bloomberg News that the U s

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Speaker 1: suspects some Chinese state owned companies maybe providing assistance for

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Speaker 1: Russia's war effort in Ukraine. The administration is reviewing the

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Speaker 1: evidence it's accumulated to determine its significance. No word on

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Speaker 1: what that evidence is. If the Biden administration finds that

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Speaker 1: Chinese companies are supporting the invasion and that China's government

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Speaker 1: knew about it or somehow involved, they would be forced

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Speaker 1: to decide how much to push back, and that could

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Speaker 1: risk opening a whole new area of dispute with China

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Speaker 1: in Washington. I'm Amy Morris, Bloomberg Daybreak. Thank you, Amy.

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Speaker 1: Let's turn back to these markets now, where we continue

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Speaker 1: to see a bullish start to the NASTAC one hundreds

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Speaker 1: coming off its best two day runs since November. It

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Speaker 1: gained two percent yesterday and the SMP five hundred is

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Speaker 1: up twelve percent from its October low. Still, Mike List,

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Speaker 1: senior portfolio manager at American Century invest San, says it

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Speaker 1: is a confusing time for investors. You've got lots of poses,

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Speaker 1: like like a strong job market, consumers still spending of

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Speaker 1: China's opening, and inflation slowing, but the negatives are race

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Speaker 1: may have to stay elevated for a while, housing to

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Speaker 1: drag miser contracting um, and you have elevated you political concerns.

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Speaker 1: So it is very confusing out there. Lots of cross

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Speaker 1: currents right now. Mike Liss with American Century Investments likes banks.

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Speaker 1: He says he is overweight in the sector. Well, Nathan,

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Speaker 1: Corporate earnings could be a determining factor to whether this

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Speaker 1: rally has legs. And this afternoon we hear from tech

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Speaker 1: heavyweight Microsoft and Bloomberg. Jeff Bellinger has a preview. Bloomberg

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Speaker 1: Intelligence says the software giants quarterly results could reflect continued

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Speaker 1: pressure on Windows and cloud products. Windows demand may have

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Speaker 1: softened because of weaker PC sales, and the rate of

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Speaker 1: growth for products from Azure two Dynamics three likely slowed.

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Speaker 1: But with Microsoft and other technology companies that have yet

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Speaker 1: to report, investors will be all ears when executives talk

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Speaker 1: about the outlook. Guidance from the sector could offer clues

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Speaker 1: to how long the pressure on earnings might last. Jeff Bullinger,

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Speaker 1: Bloomberg Daybreak. Okay, Jeff, thanks, We're seeing more job cuts

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Speaker 1: across corporate America. This morning, we get the latest on

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Speaker 1: that live with Bloomberg's Dan Schwartzman. Good morning, Dan, Good

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Speaker 1: morning Nathan and Karen. Bloomberg News learning that Gemini, the

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Speaker 1: firm led by the Winklevoss twins, will lay off ten

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Speaker 1: percent of its staff. It's the third round of job

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Speaker 1: cuts for the cryptocurrency exchange dating back to June. Gemini

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Speaker 1: Trust has been unable to pay out funds to some

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Speaker 1: of its account holders due to the bankruptcy of Genesis

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Speaker 1: Global Capital, who is set to oh around nine million

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Speaker 1: dollars to clients. Meantime, the auto industry also seeing job losses.

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Speaker 1: Ford Motor Company will be laying off workers across Europe,

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Speaker 1: mostly in Germany. It wants to cut cost to pour

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Speaker 1: more money it's electric vehicle production. Ford CEO Jim Farley

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Speaker 1: has pledged more than fifty billion dollars toward the development

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Speaker 1: of evs on Dan Schwartzman, Bloomberg Daybreak. All right, Dan,

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Speaker 1: thank you. Now, let's turned to Silicon Valley and the

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Speaker 1: trial of Elon Musk. The Tesla CEO is on the

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Speaker 1: witness stand for a second day in his securities fraud case,

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Speaker 1: defending tweets about taking the company private. Egg Baxter has

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Speaker 1: the latest from our Bloomberg nine sixty newsroom in San Francisco.

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Speaker 1: The crux of testimony centered around a deal with a

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Speaker 1: Saudi public investment fund. He said he'd had a handshake

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Speaker 1: agreement in getting help going private, but then they began

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Speaker 1: to back pedal on the arrangement after his go private tweet.

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Speaker 1: He also said he had support from Larry Ellison as

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Speaker 1: well as two other investment firms. Musk also noted the

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Speaker 1: wording of the text that he was contemplating taking the

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Speaker 1: company private. He's back on the stand today in San Francisco.

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Speaker 1: I'm at Baxter Bloomberg Daybreak, Okay, and thanks. I must

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Speaker 1: continues to fight that court battle over Tesla. He's facing

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Speaker 1: another legal challenge when it comes to Twitter. According to

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Speaker 1: a lawsuit there, Musk is accused of not paying grant

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Speaker 1: on the company san Francisco headquarters since December. The owner

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Speaker 1: of the building says the social media company failed to

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Speaker 1: pay almost seven million dollars in rent over the last

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Speaker 1: two months. Well, Musk is caught up in legal battles, Nathan,

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Speaker 1: he has seen his wealth increase thanks to a mini

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Speaker 1: rally and Testlas shares. According to the Bloomberg Billionaires Index,

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Speaker 1: Musk's fortune has swelled by more than ten billion dollars

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Speaker 1: since Friday to reach a total of roughly one forty

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Speaker 1: five billions since Friday. Musk last month became the first

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Speaker 1: person ever to see two hundred billion dollars erased from

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Speaker 1: their net worth in his thirty six degrees in Central Park.

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Speaker 1: Cloudy skies will give way to sunshine today in a

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Speaker 1: high near forty five. Those clouds are gonna roll back

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Speaker 1: in tonight, though, ahead of a wintry mess tomorrow. Time

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Speaker 1: now to take a look at some of the other

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Speaker 1: stories making news in New York and around the world

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Speaker 1: with Bloomberg's Michael bar Good morning, Michael, Good morning Nathan.

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Speaker 1: Another mass shooting in California. Seven people were killed and

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Speaker 1: another severely injured in shootings that took place at two

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Speaker 1: separate locations in Half Moon Bay in northern California. Another

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Speaker 1: person was wounded and taken to a hospital in critical condition.

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Speaker 1: The other three bodies were discovered at a separate nursery

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Speaker 1: with gunshot wounds. San Mateo County Sheriff of Christina Corpus

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Speaker 1: calls it a horrific shooting. The motive through the shooting

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Speaker 1: is currently unknown through investigation. The suspect identified as Chun Lizel,

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Speaker 1: a sixty seven year old Half Room Bay resident. The

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Speaker 1: shootings occurred two days after a gunmen killed eleven people

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Speaker 1: at a dance club. The shootings in California led to

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Speaker 1: a march in New York City. It went from Union

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Speaker 1: Square to Chinatown to fight gun violence in the US.

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Speaker 1: This person was at the event. Every time something like

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Speaker 1: this happens, if we say, oh my god, never again,

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Speaker 1: but when are we really going to finally say this

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Speaker 1: is enough? Another marcher says gun violence is a public

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Speaker 1: health crisis. Attorney General Merrit Garland dismissed criticism that the

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Speaker 1: Justice Department is treating Donald Trump and Joe Biden differently

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Speaker 1: when it comes to investigating their handling of classified documents.

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Speaker 1: We do not have different rules for Denmark rats or Republicans,

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Speaker 1: different rules for the powerful and the powerless, different rules

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Speaker 1: for the rich for for the poor. We apply the

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Speaker 1: facts and the law in each case in a neutral,

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Speaker 1: nonpartisan manner. Uh. That is what we always do. A g.

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Speaker 1: Garland made the comments during a meeting of the Reproductive

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Speaker 1: Rights Task Force at the Justice Department. A new poll

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Speaker 1: shows a majority of New Yorkers want Long Island GOP

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Speaker 1: representative George Santos to resign. According to a Siena College

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Speaker 1: Research Institute pole, nearly six out of ten New York

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Speaker 1: voters said Santos should step down. At about half of

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Speaker 1: Republicans say he should leave office. Santos admitted to lying

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Speaker 1: about working at Goldman Sachs and other parts of his

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Speaker 1: resume while campaigning. The Oscar nominations will be announced this morning.

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Speaker 1: Some of the favorite movies include Top Gun, Maverick Avatar,

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Speaker 1: The Way of Water, Black Panther, Wakonda Forever, and Elvis

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Speaker 1: Global News twenty four hours a day on air and

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Speaker 1: on Bloomberg Quicktake, powered by more than seven hundred journalists

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Speaker 1: analysts more than countries Michael Barr, and this is Bloomberg.

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Speaker 1: Night's actually seen a couple of those. How about that?

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Speaker 1: Thank you, Michael, except for the Bloomberg Sports Update now

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Speaker 1: brought tier by tri State out Here. Good morning, John Stanshower,

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Speaker 1: Good morning anything. Despite the shell lackein they took Saturday

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Speaker 1: night in Philadelphia, the Giant season was arousing success. Passons

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Speaker 1: two thousand and eleven and Napogins. What will be an

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Speaker 1: interesting off season? Daniel Jones and Sa Kwan Barkley can

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Speaker 1: both be unrestricted free agents. John's gentlemenator Joe Shane was

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Speaker 1: asked about Barkley. We want to build this team and

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Speaker 1: allocade our resources and that's that's what it comes down

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Speaker 1: to you. So again, he's he's a good football player. Um,

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Speaker 1: he was durable for this suit this year. He played well,

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Speaker 1: and you know, again he's he's a guy that we

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Speaker 1: might have back. Shane was more definitive about the chances

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Speaker 1: of Jones Attorney. Giants have learned they'll have the twenty

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Speaker 1: fifth pick of the draft. The Jets all pick thirteen.

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Speaker 1: Chiefs coach Andy Reid says he expects Patrick Mahomes to

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Speaker 1: play in Sunday's ANFC championship game but Sincinnat despite a

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Speaker 1: high ankle sprain, it did not prevent the Homes from

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Speaker 1: playing second half Last Saturday at the Garden Rangers Bead

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Speaker 1: Florida six to two, para goals for Mekas Abantage had

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Speaker 1: three assists for Timmy Panerain. Islanders lost in Toronto five

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Speaker 1: to two. In the Isles have now lost five in

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Speaker 1: a row nine of the last ten. Next tonight try

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Speaker 1: to end a four game losing streak. They host Cleveland

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Speaker 1: College Hoops. Kansas defending national champs was sixteen and one

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Speaker 1: lost at Baylor. Jayhawks have lost their last three. Duke

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Speaker 1: is just five and four in the a c C

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Speaker 1: after a loss in Virginia Tech a couple of Russians

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Speaker 1: and in the semifinals of the Australian Open, krinkatching off

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Speaker 1: took out the American Sebastian Quarter Atlanta Rabkina coming off

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Speaker 1: an upset of top seed Eka Schwech one again third

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Speaker 1: seed in Jessica Pagoula has just lost her quarterfinal match

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Speaker 1: with Victoria Azarenka six four or six one. We'll find

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Speaker 1: out today who if anyone gets into the Baseball Hall

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Speaker 1: of Fame. The philling is it could be a shutout,

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Speaker 1: but if anyone has a chance, it might be Scott Rowland,

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Speaker 1: John Stash and went Bloomberg Sports Live from coast to coast,

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Speaker 1: from New York to San Francisco, Boston to Washington, d C.

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Speaker 1: Nationwide on Sirius XAMP, the Bloomberg Business app, and Bloomberg

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Speaker 1: dot Com. This is Bloomberg Daybreak. Good morning up, Nathan Hagar.

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Speaker 1: We're following a couple of significant developments when it comes

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Speaker 1: to the war in Ukraine. Sources are telling Bloomberg News

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Speaker 1: that the Biden administrations confronting China with evidence that state

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Speaker 1: owned businesses maybe providing assistance to the Russian war effort.

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Speaker 1: And now we have confirmation from Poland that it is

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Speaker 1: asking the German government to allow it to send Leopard

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Speaker 1: two tanks into Ukraine to support their war effort. From

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Speaker 1: more on. All these stories were joined live by Bloomberg

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Speaker 1: News Executive editor for International Government, Rosalind Mathison. Ros Good morning,

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Speaker 1: thanks for being with us. I want to start with

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Speaker 1: this a US China situation. What is the evidence that

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Speaker 1: the US is talking about? What kind of assistance could

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Speaker 1: a state owned enterprises be providing Russia. Well, there wasn't

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Speaker 1: a lot of detail about that, but what we know

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Speaker 1: is that there is a rising level of concern in

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Speaker 1: going on between China and Russia and how much that

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Speaker 1: might be becoming deliberate in order to support of the

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Speaker 1: Russian economy to facilitate its war in Ukraine. It seems

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Speaker 1: to be focused around several things. One is just the

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Speaker 1: activities of state owned enterprises doing business in China. The

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Speaker 1: other is perhaps the provision of non lethal military assistance,

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Speaker 1: which is sort of spare parts, goggles, that kind of

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Speaker 1: thing that might be just, you know, what Russia actually

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Speaker 1: needs right now, given its struggles in Ukraine, and certainly

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Speaker 1: a trajectory that the US administration is seeing where some

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Speaker 1: of that activity is picking up. Of course, it's not

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Speaker 1: in violation of sanctions that are placed on Russia for now.

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Speaker 1: Chinese companies have been pretty careful to stay in their

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Speaker 1: lane on that, even though China never signed up to

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Speaker 1: these sanctions to begin with. But what they're seeing as

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Speaker 1: signs that some of that activity is on the rise,

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Speaker 1: and therefore the warnings are coming to Beijing to watch it.

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Speaker 1: What's the possibility rise that the Chinese government wouldn't potentially

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Speaker 1: know about this kind of activity coming from its own

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Speaker 1: Steino on enterprises, It's possible it is also through the

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Speaker 1: private sector, and you've just got sort of the natural

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Speaker 1: order of business. I mean, China is not just the

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Speaker 1: only country who's really seeing business somewhat as usual with

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Speaker 1: Russia despite its actions in Ukraine. India, countries in the

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Speaker 1: Middle East, Africa and so on similarly have been continuing

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Speaker 1: to trade and invest with Russia with certain enterprises, generally,

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Speaker 1: they tend not to act without at least a sense

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Speaker 1: of the mood in Beijing. It might not be an

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Speaker 1: avert instruction from Beijing, but at least sort of knowing

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Speaker 1: where the wind is with the leadership there in terms

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Speaker 1: of things like their view on Russia and its actions

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Speaker 1: in Ukraine. So they wouldn't be acting really without sort

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Speaker 1: of a sense of that, even if it's not an

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Speaker 1: overt instruction. Um So you can read from that that

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Speaker 1: probably there is a sense of other mood shift in

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Speaker 1: Beijing in the leadership about Russia on this and what's

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Speaker 1: the potential of the mood shift affecting US China relations.

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Speaker 1: We've had over the last couple of months at least

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Speaker 1: an effort to try to stabilize, if not further improve

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Speaker 1: Chinese relations after that meeting between the presidents of the

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Speaker 1: U S and China. Well, certainly that is the balancing

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Speaker 1: that we're seeing going on. As you've noted, there's been

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Speaker 1: sort of a shift between China and the US at

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Speaker 1: least an effort to put that relationship on a more

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Speaker 1: even keel. And we're expecting the Secretary of State Anthony

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Speaker 1: Lincoln to visit China before too long, and that would

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Speaker 1: be sort of putting that on that further trajectory. So

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Speaker 1: there will be probably an anxiety at least in Washington

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Speaker 1: to make sure that these issues remain somewhat separate. Yeah,

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Speaker 1: you continue to press China over Russia, over Ukraine, but

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Speaker 1: equally you're trying to put sort of trade and investment

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Speaker 1: and other other issues, including the need to tackle climate

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Speaker 1: change collectively, for example, on a different track between the

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Speaker 1: US and China relationship. So you'd imagine that there's a

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Speaker 1: strong design not to have it in fect that broader

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Speaker 1: trajectory too much. And I want to turn rise finally

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Speaker 1: to this new development that just crossed the Bloomberg terminal

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Speaker 1: moment ago, that Poland is now formally asking Germany for

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Speaker 1: permission to send in Leopard two tanks. I guess this

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Speaker 1: isn't too big a surprise here, but this does seem

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Speaker 1: to have become something of a fracture in the Needle alliance.

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Speaker 1: What more can you tell us about that? Well, that's

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Speaker 1: right to some sense. It's a it's a formality because

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Speaker 1: Poland has been asking for weeks and weeks or weeks

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Speaker 1: for Germany to agree to this. Almost a daily commentary

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Speaker 1: from someone in Poland saying Germany needs to now allow this.

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Speaker 1: So it's just putting more pressure on on Berlin to

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Speaker 1: to agree that other countries can send in their own

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Speaker 1: German made heavy tanks, the Leopard tanks in particular. We

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Speaker 1: are expecting that Germany will will sort of get over

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Speaker 1: the line on this at some point, whether it's days

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Speaker 1: or potentially still weeks, but the pressure is intense, and

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Speaker 1: really even Germany is agreeing that Ukraine needs more heavy

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Speaker 1: weapons if it's going to be able to push back

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Speaker 1: against a possible Russian offensive that may come in the

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Speaker 1: next couple of weeks or a couple of months. But

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Speaker 1: it's really just sort of keeping that public pressure from

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Speaker 1: Poland on Germany to agree just thirty seconds left her rise.

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Speaker 1: But what's been holding Germany back up to this point, well,

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Speaker 1: a bunch of things. One is obviously concern and Germany

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Speaker 1: is not the only one saying this, is that the warriors,

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Speaker 1: the more heavy kit you sent into Ukraine, the more

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Speaker 1: at some point you possibly provoked Russia into a reaction.

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Speaker 1: Although Vladimir Putin has threatened that before and not followed through.

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Speaker 1: So that's really a fundamental concern. And also Germany is

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Speaker 1: just very cautious about its weaponry going into other hands.

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Speaker 1: That's been its position since the end of World War

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Speaker 1: Two and something that it still holds very closely. So

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Speaker 1: those are probably the two main drivers in that regard.

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Speaker 1: This is Bloomberg Daybreak Today, your morning brief on the

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