WEBVTT - Massive Oil Stockpile Release; Iran Market Volatility

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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. Breaking across the Bloomberg

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<v Speaker 2>this morning, the International Energy Agency is proposing a release

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<v Speaker 2>of emergency oil reserves that would be the largest ever

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<v Speaker 2>in its history. Sources tell Bloomberg that the IEA has

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<v Speaker 2>proposed a release in the range of about three hundred

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<v Speaker 2>million to four hundred million barrels as governments seek to

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<v Speaker 2>contain a spike and energy prices driven by the Middle

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<v Speaker 2>East War. Begin More from Bloomberg Middle East Breaking News

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<v Speaker 2>editor Patrick Sykes.

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<v Speaker 3>That would be a huge amount of supplied potentially to

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<v Speaker 3>enter the market at a time when, of course, lots

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<v Speaker 3>and lots of ships are stuck on the wrong side

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<v Speaker 3>of the straight up ball moves in the Persian Gulf,

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<v Speaker 3>and some of those producers in the Middle East have

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<v Speaker 3>had to shut in production or put it back at

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<v Speaker 3>least as a result of the crisis.

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<v Speaker 2>Bloomberg's Patrick Saike says the near total closure at the

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<v Speaker 2>Strait of Horror Moose have led to cuts from Persian

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<v Speaker 2>golf producers that have so far shaved about six percent

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<v Speaker 2>of global oil output, and.

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<v Speaker 4>As the war enters its twelfth day careen, the White

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<v Speaker 4>House has been sending mixed messages. First, Energy Secretary Chris

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<v Speaker 4>Wright posted and deleted a message that the US Navy

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<v Speaker 4>had escorted a tanker through the Strait. White House Press

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<v Speaker 4>Secretary Caroline Levitt says the military is still working on

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<v Speaker 4>options to keep Hormose open.

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<v Speaker 5>The US military is jarring up additional options following the

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<v Speaker 5>President's directive to continue keeping the straight up from Moose open.

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<v Speaker 2>White House spokeswoman Caroline Levitt, then President Trump posted there

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<v Speaker 2>were no reports of Iran laying mines in the Strait,

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<v Speaker 2>only to announce later that the US had destroyed ten

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<v Speaker 2>inactive mine laying boats. All this as a tax continue

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<v Speaker 2>for a twelve a day and we get the very

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<v Speaker 2>latest from Bloomberg's owner Aunt in Dubai.

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<v Speaker 5>Yesterday marked the most intense date of strikes on Iran

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<v Speaker 5>by the US equity American officials, and overnight into Wednesday,

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<v Speaker 5>we have seen countries in the Persian Gulf intercepting various

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<v Speaker 5>drawn and missile launches from Iran, some of them headed

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<v Speaker 5>for again other energy assets, including the Sheba oilfield in

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<v Speaker 5>Saudi Arabia as well as the Eastern Region in Saudi

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<v Speaker 5>Arabia again, which is home to some of the some

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<v Speaker 5>of the largest oil producing assets in.

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<v Speaker 2>The Kingdom, and Bloomberg's on Iran says the UK Navy

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<v Speaker 2>reported three ships hit by suspected projectiles in the Straight

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<v Speaker 2>Up Our Moves and the Persian Golf this morning. One

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<v Speaker 2>of them was a cargo ship that had a fire

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<v Speaker 2>on board. And one of the two members of the

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<v Speaker 2>Iranian women's soccer team who was granted asylum by Australia

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<v Speaker 2>last night has decided to to draw her claim and

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<v Speaker 2>return to Iran. Several members of the team were branded

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<v Speaker 2>traders after they failed to sing their national anthem before

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<v Speaker 2>a Women's Asian Cup match last week.

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<v Speaker 4>Well Karen analysts are weighing in on whether this will

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<v Speaker 4>be a short or long conflict. Richard is President Emeritis

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<v Speaker 4>at the Council on Foreign Relations.

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<v Speaker 6>The problem with the US position is it only took

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<v Speaker 6>one to start the war US, but it's going to

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<v Speaker 6>take three to end it. And that's mean first of all,

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<v Speaker 6>the United States is going to have to, shall we say,

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<v Speaker 6>lean on Israel to be blunt to bring the war

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<v Speaker 6>to an end. Sooner than the Prime Minister wants. Even

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<v Speaker 6>more difficult is the United States, so is going to

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<v Speaker 6>have to persuade Iran to bring a war to this

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<v Speaker 6>war to an end, and that I think is going

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<v Speaker 6>to be the biggest challenge for this president who increasingly

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<v Speaker 6>wants to wrap this up to Claire victory, declare mission accomplished.

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<v Speaker 6>But again he doesn't have the power to do that.

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<v Speaker 6>He's got to bring a run.

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<v Speaker 4>Around Council on Foreign Relations. President Emeredis Richard Haas spoke

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<v Speaker 4>to Bloomberg's Romain Bostic and Katie Grindfeld. You can watch

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<v Speaker 4>their full interview on our new video Experience on the

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<v Speaker 4>Bloomberg Business app.

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<v Speaker 2>Well, we turned to politics at Home now. Nathan in

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<v Speaker 2>one of the most conservative congressional districts in the US.

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<v Speaker 2>A special election in Georgia to replace former Representative Marjorie

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<v Speaker 2>Taylor Green has an unusual runoff, a Democrat facing a

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<v Speaker 2>Republican endorsed by President Trump. The Democrat, Sean Harris, is

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<v Speaker 2>a retired Army general and cattle farmer. He leads Republican

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<v Speaker 2>district attorney Clay Fuller thirty seven point three to thirty

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<v Speaker 2>four point nine percent, with ninety nine percent of the

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<v Speaker 2>vote counted. Both candidates will face off again after neither

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<v Speaker 2>of them won the majority in a seventeen candidate field.

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<v Speaker 2>Harris spoke with the Bloomberg's Balance of Power before the

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<v Speaker 2>votes were counted and said he has what it takes

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<v Speaker 2>to win.

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<v Speaker 7>My name is the name that people know and trust

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<v Speaker 7>here in the district, and that's why we're actually going

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<v Speaker 7>to win this thing tonight. And if we don't win

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<v Speaker 7>in tonight, we're going to win the runoff because I'm

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<v Speaker 7>getting Democrats independence and yes, Republicans are voting for me.

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<v Speaker 2>And Georgia Democrat John Harris will face Clay Fuller and

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<v Speaker 2>in April seventh runoff to fill the remainder of Marjorie

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<v Speaker 2>Taylor Green's term this year then Karen.

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<v Speaker 4>It was also a primary election day in Mississippi and

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<v Speaker 4>incumbent Republican Senator Cindy Hyde Smith will face Democratic challenger

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<v Speaker 4>Scott Collum in the after they easily won their races.

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<v Speaker 4>Hyde Smith was endorsed by President Trump, and with ninety

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<v Speaker 4>three percent of votes counted, she defeated Sarah Adlodka eighty

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<v Speaker 4>point eight to nineteen point two percent. Column received seventy

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<v Speaker 4>three percent of the Democratic votes, and House incumbents, including

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<v Speaker 4>longtime Democratic Congressman Benny Thompson, also easily won their Mississippi

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<v Speaker 4>primary races.

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<v Speaker 2>And we are hearing now that the International Energy Agency

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<v Speaker 2>is proposing a release of reserves oil stockpire release of

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<v Speaker 2>about three hundred to four hundred million barrels. Still, NIMEGX

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<v Speaker 2>screwde oil remains higher this morning a four point eight

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<v Speaker 2>percent of four dollars three cents at eighty seven dollars

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<v Speaker 2>forty eight cents a barrel. Brent is up four and

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<v Speaker 2>a quarter percent. It's at ninety one dollars forty one cents, and.

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<v Speaker 4>Karen futures are lower this morning. Ahead of a key

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<v Speaker 4>reading on inflation before the opening bill, we get the

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<v Speaker 4>consumer Price Index for the month of February. It's projected

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<v Speaker 4>to show core inflation stripping out volatile energy and food

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<v Speaker 4>prices rose two tenths percent last month.

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<v Speaker 2>And right now, taking a look at Oracle and Company news,

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<v Speaker 2>shares are up ten percent in early trading. Revenue top

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<v Speaker 2>analyst estimates, and the software maker gave an outlook that

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<v Speaker 2>suggested there is little letup and demand for AI computing.

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<v Speaker 2>Aniragrana covers Oracle for Bloomberg Intelligence.

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<v Speaker 8>It's actually very clean numbers. I think the things that

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<v Speaker 8>sticks out most as capital expenditure is not going to

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<v Speaker 8>go up. I think people are worried about a lot

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<v Speaker 8>of these cloud providers adding to capex, so that's a

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<v Speaker 8>good thing, which revenue slightly higher, capex remaining flat, the

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<v Speaker 8>backlog is growing, So I think this is a good

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<v Speaker 8>print from multiple facets.

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<v Speaker 2>And Bloomberg Intelligence is anaag Rana notes that before the report,

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<v Speaker 2>Oracles stock had lost more than fifty percent of its

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<v Speaker 2>value from mid September peak as Wall Street grew worried

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<v Speaker 2>about its high AI costs.

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<v Speaker 4>Wall Street's biggest bank, JP Morgan Chase Karen is restricting

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<v Speaker 4>its lending to private credit funds after marking down the

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<v Speaker 4>value of certain assets in their portfolios. Sources say the

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<v Speaker 4>devalued loan are two software companies. That is a sector

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<v Speaker 4>that has been in the spotlight in recent weeks due

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<v Speaker 4>to investor concern over the potential impact from artificial intelligence.

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<v Speaker 4>This news is the latest sign of stress in a

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<v Speaker 4>once booming segment of the credit market.

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<v Speaker 2>And a programming note. Markets may clothes on Friday, but

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<v Speaker 2>the world does not That's why we bring you a

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<v Speaker 2>new live radio and TV show, Bloomberg This Weekend, is

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<v Speaker 2>looking beyond the daily headlines to the bigger themes driving politics, business,

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<v Speaker 2>and culture. Joined David Gura, Christina Ruffini, and Lisa Matteo

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<v Speaker 2>for smart conversations and in depth interviews that help make

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<v Speaker 2>sense of the week that's been and what comes next.

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<v Speaker 2>Get Bloomberg This Weekend live Saturdays and Sundays from seven

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<v Speaker 2>am Eastern on Bloomberg Radio, TV and the Bloomberg Business App.

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<v Speaker 2>Time now for a look at some of the other

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

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<v Speaker 2>And for that we're joined by Bloomberg's Michael Barr.

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<v Speaker 9>Michael, good Morning, Good morning Karen. The Department of Homeland

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<v Speaker 9>Security remains without funding approval from Congress, as TSA agents

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<v Speaker 9>are working without That means long lines at security with

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<v Speaker 9>increased sick calls. The former governor of New Hampshire, Chris Sanunu,

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<v Speaker 9>is now president and CEO of the trade group Airlines

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<v Speaker 9>for America.

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<v Speaker 1>Is this the new norm?

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<v Speaker 4>Is this the new populism politics? Where airlines in the

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<v Speaker 4>American public are pedalized every time these guys don't agree

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<v Speaker 4>on something.

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<v Speaker 9>Meanwhile, some US airports, including San Francisco International Airport, used

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<v Speaker 9>private contractors for security screenings. The private contractors pay comes

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<v Speaker 9>from a federal contract, so it continues even when the

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<v Speaker 9>government shuts down. First responders are searching beneath the rubble

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<v Speaker 9>of structures leveled by what appears to be a tornado

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<v Speaker 9>that ripped through Newton County, Indiana, minutes after one was

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<v Speaker 9>reported over the border in Illinois. Newton County Sheriff Shannon Conthrine.

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<v Speaker 3>We're still trying to assess damages.

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<v Speaker 6>Andreies so far have been minor that have been reported.

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<v Speaker 9>Sheriff Conthine says, there's about a three mile stretch of damage.

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<v Speaker 9>Here's the Governor, Mikey Cheryl says she wants to scale

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<v Speaker 9>that state's new property tax relief program for senior citizens

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<v Speaker 9>to help close a three billion dollars structural deficit. In

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<v Speaker 9>her first budget address since entering office in January, Cheryl

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<v Speaker 9>proposed two billion dollars in spending reductions. The largest reduction

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<v Speaker 9>would come from the shrinking size and eligibility of the

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<v Speaker 9>stay New Jersey tax benefit for homeowners age sixty five

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<v Speaker 9>or older who make below five hundred thousand dollars. Cheryl

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<v Speaker 9>sixt Cheryl sixty point seven billion dollar budget proposal would

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<v Speaker 9>lower the qualifying income threshold for the tax benefit to

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<v Speaker 9>two hundred and fifty thousand dollars and reduce the maximum

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<v Speaker 9>annual benefit to four thousand from sixty five hundred. Global

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<v Speaker 9>News twenty four hours a day and whenever you want

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<v Speaker 9>it with the Bloomberg News. Now Michael Barr, and this

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<v Speaker 9>is Bloomberg here. Thanks Michael.

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<v Speaker 2>All time now for our Bloomberg Sports update, and for

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

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<v Speaker 10>Thanks Darren vam Adabaio. It was only the third leading

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<v Speaker 10>scorer on the Miami Heat, the thirty eighth leading scorer

0:10:05.960 --> 0:10:08.640
<v Speaker 10>in the NBA at least going into last night. When

0:10:08.679 --> 0:10:13.000
<v Speaker 10>Auto Baio exploded against Washington. He scored eighty three points.

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<v Speaker 10>That's two more than Kobe Bryant scored in two thousand

0:10:15.920 --> 0:10:18.600
<v Speaker 10>and six. It's topped only by the one hundred points

0:10:18.600 --> 0:10:21.800
<v Speaker 10>that Will Chamberlain had in nineteen sixty two. Upset in

0:10:21.880 --> 0:10:25.120
<v Speaker 10>the World Baseball Classic, Italy beat the US eight to six.

0:10:25.480 --> 0:10:29.160
<v Speaker 10>If Mexico beats Italy and scores four or fewer runs,

0:10:29.160 --> 0:10:31.480
<v Speaker 10>the US is out. That's a Bloomberg Sports Update.

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<v Speaker 4>Stay with us. More from Bloomberg Daybreak coming up after this.

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

0:10:45.200 --> 0:10:48.040
<v Speaker 1>and around the world on Bloomberg dot Com and the

0:10:48.040 --> 0:10:51.120
<v Speaker 1>Bloomberg Business out This is Bloomberg Daybreak.

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<v Speaker 4>Good morning on Nathan Hager. As the war where Iran

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<v Speaker 4>enters its twelfth day, major moves maybe on the way

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<v Speaker 4>now to calm an energy market that has been whipsawed

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<v Speaker 4>by the fast moving conflict. Bloomberg News has learned that

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<v Speaker 4>the International Energy Agency is now proposing the largest ever

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<v Speaker 4>release of emergency oil reserves. For the latest, We're joined

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<v Speaker 4>from Istan Bull by Bloomberg News Middle East Breaking News

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<v Speaker 4>editor Patrick Sykes and Patrick. Before we got this latest word,

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<v Speaker 4>we had already heard that this could be the biggest

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<v Speaker 4>release since Russia's invasion of Ukraine. What's the latest we're

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<v Speaker 4>hearing now.

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<v Speaker 3>Yeah, Indeed, that would be a huge amount of supplied

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<v Speaker 3>potentially to enter the market at a time when, of course,

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<v Speaker 3>lots and lots of ships are stuck on the wrong

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<v Speaker 3>side of the straight up ball moves in the Persian Gulf,

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<v Speaker 3>and some of those producers in the Middle East have

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<v Speaker 3>had to shut in production or put it back at

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<v Speaker 3>least as a result of the crisis. I think we'll

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<v Speaker 3>be watching potentially later to today, later today for a

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<v Speaker 3>final decision on those reserves. But potentially yes, some release

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<v Speaker 3>to the market in the form of supply.

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<v Speaker 4>Three hundred to four hundred million barrels a day is

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<v Speaker 4>what sources are telling us. Will that be enough to

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<v Speaker 4>calm the market is we are watching Nimex and Crew

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<v Speaker 4>both spiking still this morning.

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<v Speaker 3>I think the market will quite quickly. I mean, I'm

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<v Speaker 3>sure it'll provide some limited relief, but I think longer

0:12:12.880 --> 0:12:15.800
<v Speaker 3>term the market will get quite quickly. Back to question

0:12:15.880 --> 0:12:18.480
<v Speaker 3>of duration in the straight or forms. This is an

0:12:18.520 --> 0:12:22.640
<v Speaker 3>emergency measure. It will provide some relief at the front end,

0:12:23.040 --> 0:12:25.880
<v Speaker 3>but for longer term calming of the market, any return

0:12:25.960 --> 0:12:28.360
<v Speaker 3>to the kind of price levels we saw before the

0:12:28.440 --> 0:12:30.679
<v Speaker 3>start of the war, I think you need a resolution

0:12:31.600 --> 0:12:35.600
<v Speaker 3>to the conflict and particularly to the security situation in holmost.

0:12:35.920 --> 0:12:38.640
<v Speaker 4>What does the security situation look like right now? We've

0:12:38.679 --> 0:12:43.560
<v Speaker 4>heard reports of some ships being hit potentially or targeted.

0:12:44.800 --> 0:12:47.440
<v Speaker 3>Yeah. By my account, today has been one of the

0:12:47.440 --> 0:12:50.319
<v Speaker 3>worst for attacks on shipping in the region. We've had

0:12:50.400 --> 0:12:55.959
<v Speaker 3>three separate incidents reported by the UK Navy agency that

0:12:56.080 --> 0:13:01.240
<v Speaker 3>looks at these. I think a cargo bulk carrier. So

0:13:01.320 --> 0:13:04.080
<v Speaker 3>it just under lines note I think hours after Trump

0:13:04.400 --> 0:13:09.840
<v Speaker 3>and his administration we're talking about targeting Iranian mining capabilities

0:13:09.840 --> 0:13:13.600
<v Speaker 3>to secure the straight, Iran appears to have responded with

0:13:13.679 --> 0:13:15.000
<v Speaker 3>an uptick in attacks.

0:13:15.640 --> 0:13:19.520
<v Speaker 4>It raises a question about whether the US is ready

0:13:19.559 --> 0:13:24.600
<v Speaker 4>to fulfill President Trump's promise to escort ships through the

0:13:24.640 --> 0:13:27.839
<v Speaker 4>Strait of Horror moves. What's the situation there.

0:13:28.640 --> 0:13:31.959
<v Speaker 3>Yeah, there was some confusion yesterday. One US official had

0:13:32.000 --> 0:13:35.160
<v Speaker 3>said that that had begun, one ship had passed, and

0:13:35.200 --> 0:13:37.840
<v Speaker 3>that was later denied by the White House and the

0:13:37.880 --> 0:13:41.920
<v Speaker 3>posting question was deleted. I think if and when it

0:13:42.000 --> 0:13:45.880
<v Speaker 3>comes yes, perhaps similar to these reserves, right, it'll provide

0:13:46.000 --> 0:13:51.000
<v Speaker 3>some relief in that traffic will be able to start

0:13:51.080 --> 0:13:55.120
<v Speaker 3>moving again. On the other hand, those convoys are going

0:13:55.200 --> 0:13:58.200
<v Speaker 3>to be themselves a target and the rate of transit

0:13:58.320 --> 0:14:00.480
<v Speaker 3>is still going to be very very low with the

0:14:00.559 --> 0:14:03.200
<v Speaker 3>kind of hardware you would need to commit to get

0:14:03.240 --> 0:14:06.240
<v Speaker 3>them through, So you're looking at potentially resumption, but at

0:14:06.280 --> 0:14:09.000
<v Speaker 3>a much lower volume. Still.

0:14:09.240 --> 0:14:12.679
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