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Speaker 1: Good morning.

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Speaker 2: I'm Nathan Hager and I'm Garen Moscow. Here are the

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Speaker 2: stories we're following today.

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Speaker 3: Shares of Disney are jumping this morning, up more than

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Speaker 3: six percent. That follows the company's latest earnings report, and

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Speaker 3: we get the latest with Bloomberg's John Tucker, John.

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Speaker 4: And Nathan Disney reporting better than expended earnings and issuing

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Speaker 4: an upbeat profit outlook thanks to cost cutting and the

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Speaker 4: theme parks. Profit this year will Brian's at least twenty percent.

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Speaker 4: Now the revenue did fall short of estimates, they said

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Speaker 4: the streaming business should still turn a profit in the

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Speaker 4: fourth quarter. What shareholders really like is a fifty percent

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Speaker 4: boost to the dividend plus a stock buyback. And there's more.

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Speaker 4: CEO Bob Biker announcing they're acquiring a one and a

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Speaker 4: half billion dollar equity stake in Fortnite maker Epic Games.

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Speaker 5: Our new relationship with Epic Games will create a transformational

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Speaker 5: games and the entertainment universe that integrates Disney's world class

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Speaker 5: storytelling into epics cultural phenomenon.

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Speaker 4: Fortnite with the a Little Launch shop and play with

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Speaker 4: Disney characters within the Fortnight game. The deal also involves

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Speaker 4: new titles in a collaboration with the company's theme parks.

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Speaker 4: John Tucker Bloomberg Radio.

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Speaker 6: Very, John, thanks well.

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Speaker 2: Shares in shipping Giant mayre scare the worst performer on

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Speaker 2: the Eurostark six hundred. On a busy morning for earnings

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Speaker 2: in Europe, and we go to London and get the

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Speaker 2: latest from Bloomberg at daybreak, Europe anchor Caroline Hemgar, Caroline.

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Speaker 7: Karen Nathan, Good morning. Mrsk's CEO, Vincent Clerk tells Bloomberg

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Speaker 7: that the threat to red sea shipping hasn't peaked yet,

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Speaker 7: but the Danish shipping Giant expects higher freight rates to

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Speaker 7: disappear later this year and renewed gloom for the industry,

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Speaker 7: hence the stock drop. A better story for payment processor

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Speaker 7: Adjin shares surging thanks to higher revenue and, according to

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Speaker 7: the co CEO, more US customers trusting it. Somewhere in

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Speaker 7: the middle frostwa Henri Pinots Curring, owner of Gucci. Pino

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Speaker 7: calls twenty twenty three a trying year, but investors conclude

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Speaker 7: Gucci's results were better and fared in London. Caroline Hepgar

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Speaker 7: Bloomberg Radio.

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Speaker 3: Right, Caroline, thank you. We stay in London now for

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Speaker 3: a Bloomberg News exclusive. Former Barclay's CEO Jess Staley has

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Speaker 3: long maintained he cut off his friendship with Jeffrey Epstein

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Speaker 3: once he became boss of the UK bank, but legal

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Speaker 3: documents seen by Bloomberg claimed Staley had indirect contact with

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Speaker 3: the late pedophile financier for years after that. We get

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Speaker 3: the details from Bloomberg's Chris Pitt.

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Speaker 6: According to documents that formed part of a now settled

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Speaker 6: US virgin Isle's lawsuit against Jess Staley's former employer, JP Morgan,

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Speaker 6: and intermediary was used by the two men to stay

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Speaker 6: in touch. The filings contradict what Staley told the Barclays

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Speaker 6: board about his relationship with Epstein. It also contradicts a

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Speaker 6: UK regulatory probe that found no evidence of contact between

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Speaker 6: the two men. After October of twenty fifteen, representatives for

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Speaker 6: Jess Staley and JP Morgan didn't respond to requests for

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Speaker 6: comment on the claims. Spokespeople for Barclays and the FCA

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Speaker 6: also declined to comment. In London, Chris Pitt Bloomberg Radio.

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Speaker 2: All right, Chris, thanks now, turning to politics back home,

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Speaker 2: Senate Republicans delivered a death blow to efforts to secure

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Speaker 2: the border, with Mexico blocking it by Purtison compromise. After

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Speaker 2: Donald Trump announced the deal, Bloomberg's Amy Morris has more

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Speaker 2: from Washington.

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Speaker 8: The forty nine to fifty Senate vote virtually guarantees Congress

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Speaker 8: will not pass any broad immigration nor border legislation before

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Speaker 8: the November presidential election. It leaves no clear path for

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Speaker 8: new US military assistance to Ukraine, Israel, and Taiwan. Republican

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Speaker 8: Senator James Langford helped negotiate the deal and said his

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Speaker 8: political career was threatened.

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Speaker 9: That told me flat out, if you try to move

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Speaker 9: a bill that solves the border crisis during this presidential year,

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Speaker 9: I will do whatever I can to destroy you, because

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Speaker 9: I do not want you to solve this during the

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Speaker 9: presidential election.

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Speaker 8: The Senate will try again today to move the bill

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Speaker 8: forward without border provisions. In Washington, Amy Morris Bloomberg Radio.

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Speaker 10: Look, Amy, thank you.

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Speaker 3: Now, let's get to the latest from the Middle East.

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Speaker 3: The US says it has taken out the leader of

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Speaker 3: the Iron backed militia that killed three American soldiers last week.

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Speaker 3: The Pentagon says the commander of the group, katab Has Belah,

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Speaker 3: was killed in a drone strike in Baghdad. Meanwhile, Secretary

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Speaker 3: of State Anthony Blinken is trying to brok or a

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Speaker 3: cease fire deal between Israel and Hamas, but Israel's position

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Speaker 3: is hardening. Bloomberg's Ed Baxter has the latest.

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Speaker 11: This comes as Prime Minister Benjaminett Yahoo has summarily rejected

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Speaker 11: the Hamas proposal. Blencoln says the Hamas response does have

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Speaker 11: some non starters, but he will continue working on a plan,

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Speaker 11: he says, and won't give up.

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Speaker 12: Our focus today is on all of the diplomacy needed

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Speaker 12: to bring it about, including again getting ideas, getting proposals

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Speaker 12: from all concerned, and putting those together in a credible

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Speaker 12: and clear plan.

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Speaker 11: B Lincoln says getting the hostages out as a very

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Speaker 11: very high priority. Ad Baxter Bloomberg.

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Speaker 2: Radio, all right, Ed, thanks well. Turning to the economy,

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Speaker 2: now more clues the Fed is in no rush to

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Speaker 2: cut interest rates. Richmond Fed President Thomas Barkin says, it

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Speaker 2: makes sense to be patient.

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Speaker 13: I'm very supportive of being patient, you know, to get

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Speaker 13: to where we need to get. I see at this

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Speaker 13: point the trade off, which is you know, coming into

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Speaker 13: better balance, is still being in favor of continuing to

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Speaker 13: work on inflation.

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Speaker 2: And Richmond FED President Thomas Barkin and central bankers have

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Speaker 2: left interest rates unchanged since July.

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Speaker 3: And in Asia, Karen, China's consumer prices fell last month

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Speaker 3: at their fastest paced since the global financial crisis. The

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Speaker 3: consumer price index for China dropped eight tenths of one

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Speaker 3: percent in January from a year ago. That's the weakest

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Speaker 3: since September of two thousand and nine and worse than

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Speaker 3: economists expectations for a half percent decline.

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Speaker 2: And it's time now for a look at some of

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Speaker 2: the other stories making news around the world. For that,

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Speaker 2: we're joined by Bloomberg's Amy Morris Amy, good morning, Good.

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Speaker 14: Morning, Karen.

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Speaker 8: The Supreme Court will be hearing a challenge this morning

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Speaker 8: that could determine if Donald Trump will be removed from

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Speaker 8: the presidential ballot in some states. Bloomberg's Nancy Lyons.

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Speaker 15: Reports Colorado says the Fourteenth Amendment's insurrectionist clause renders former

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Speaker 15: President Trump ineligible to run for president due to his

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Speaker 15: connections to the January sixth assault in the Capitol. Courts

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Speaker 15: in ten other states have ruled the clause does not

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Speaker 15: apply to Trump. The Supreme Court will need to determine

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Speaker 15: if the clause can be invoked in the absence of

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Speaker 15: a court conviction or congressional action. It will also consider

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Speaker 15: whether the clause applies to the presidency and whether January

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Speaker 15: sixth was an insurrection in which Trump participated. Ahead of

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Speaker 15: the arguments, the chair of the Senate Judiciary Committee, Senator

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Speaker 15: Dick Durbin, has asked Justice Clarence Thomas to recuse himself.

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Speaker 15: In Washington, Nancy lyons Bloomberg Gradient.

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Speaker 8: The search continues for five missing Marines in San Diego

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Speaker 8: County after a helicopter crash Tuesday night. Crews have found

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Speaker 8: the helicopter wreckage, but no sign of the marines. CalFire

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Speaker 8: Captain Mike Cornett a remote.

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Speaker 16: Area the Cleveland National Forest. There's rugged terrain out here.

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Speaker 16: There's lots of rocks, there's truck trails that go through

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Speaker 16: the area, but the mud and the snow, it can

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Speaker 16: become treacherous to travel.

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Speaker 8: The Superstallion helicopter was part of the third Marine Aircraft

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Speaker 8: Wing and was going from Creech Air Force Base near

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Speaker 8: Vegas to Marine Corps Air Station Miramar in San Diego.

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Speaker 8: The Biden Administration is working with the top US artificial

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Speaker 8: intelligence companies to craft federal standards on artificial intelligence to

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Speaker 8: ensure its use safely and responsibly. Commerce Secretary Gina Raimondo

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Speaker 8: says Apple, Amazon, OpenAI, Microsoft Meta and others will be

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Speaker 8: working with the National Institute of Standards and Technology, along

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Speaker 8: with civil society groups, academics, and state and local government

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Speaker 8: officials to establish AI safety standards. Scientists at Stanford University

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Speaker 8: are working on a blood test to potentially save millions

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Speaker 8: of lives by detecting cancer much earlier than before. They

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Speaker 8: say the samples are far larger than what Theeronos was

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Speaker 8: doing before the company tanked, and insist they are able

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Speaker 8: to show results. The CDC is warning about the rise

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Speaker 8: in measles infections in the US. There have been twenty

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Speaker 8: three reported cases since December, mostly in children who have

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Speaker 8: not been vaccinated. Global News twenty four hours a day

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Speaker 8: and whenever you want it with Bloomberg News.

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Speaker 17: Now.

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Speaker 8: I'm Amy Morris than This is Bloomberg Karen.

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Speaker 2: All right, Amy, thanks. We do bring you news throughout

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Speaker 2: the day right here on Bloomberg Radio. But now, as

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Speaker 2: Amy said, you can get the latest news on demand,

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Speaker 2: and that means whenever you want it. Just subscribe to

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Speaker 2: Bloomberg and News Now. You can get the latest headlines

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Speaker 2: right at the click of a button. Get informed on

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Speaker 2: your schedule. You can listen and subscribe to Bloomberg News

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Speaker 2: Now on the Bloomberg Business app, Bloomberg dot Com plus apples, Spotify,

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Speaker 2: and anywhere else you get your podcasts. Time now for

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Speaker 2: the Bloomberg Sports Update. Here's John stash Hour John Karen.

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Speaker 17: The hottest team with the NBA the Cleveland Cabelaers. They

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Speaker 17: lost on New Year's Days. Since then, they're fifteen and one.

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Speaker 17: They got forty points of Donovan Mitchell and one one

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Speaker 17: fourteen to one oh six at Washington. The Cavs have

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Speaker 17: moved into second place in the East. Then there are

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Speaker 17: the Philadelphia seventy six Ers, who are going in the

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Speaker 17: opposite direction, struggling without their star center Joe Elmbed, who

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Speaker 17: could be out another month with the knee injury. Six

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Speaker 17: Ers have lost seven to last eight. They lost at

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Speaker 17: home to Golden State one twenty seven to one oh

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Speaker 17: four Celtics thirty ninth winn of the season. They're twenty

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Speaker 17: four and three at home thirty one points for Christaps

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Speaker 17: Porzingis celtsbyt Atlanta one twenty five to one seventeen. They

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Speaker 17: also acquired a player, getting big man Xavier Tillman from Memphis.

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Speaker 17: The NBA trade deadline three Eastern today. Big names not

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Speaker 17: expected to be moved, but there certainly will be some movement.

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Speaker 17: College hoops Duke by eighteen over Notre Dame, Auburn by

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Speaker 17: eighteen over Alabama. Tennessee bleue out LSU by twenty one upset.

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Speaker 17: Wisconsin lost at Michigan seventy two to sixty eight. Nick Saban,

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Speaker 17: retired as Alabama football coach, will work for ESPN. He'll

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Speaker 17: be part of the College Game Day show. He'll also

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Speaker 17: work on the NFL Draft. Else Cowboys looking for a

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Speaker 17: defensive cordator. They've already interviewed Ron Rivera, just fired as

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Speaker 17: the head coach in Washington. Also Mike Zimmer, the former

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Speaker 17: head coach in Minnesota. The latest interview for the job

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Speaker 17: Rex Ryan, who hasn't had an NFL coaching job since

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Speaker 17: twenty sixteen, when he's the head coach in Buffalo. Before that,

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Speaker 17: the head coach of the Jets.

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Speaker 14: He's been working for ESPN.

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Speaker 17: Johns Dashawer Bloomberg Sports.

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Speaker 10: From coast to coast from New York to San Francisco,

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Speaker 10: Boston to Washington, DC nationwide on SIRISXAM, the Bloomberg Business

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Speaker 10: app in Bloomberg dot Com. This is Bloomberg Daybreak.

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Speaker 1: Good morning.

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Speaker 3: I'm Nathan Hager here now with a closer look at

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Speaker 3: the biggest earning story of the morning. We continue to

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Speaker 3: watch shares of the Walt Disney Company. The entertainment giant

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Speaker 3: reported better than expected results and an upbeat out look

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Speaker 3: for the full year. Cost cuts and booming business at

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Speaker 3: Disney theme parks are getting a lot of the credit

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Speaker 3: for this, but for more on These results were joined

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Speaker 3: by Bloomberg's critty goop.

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Speaker 6: Yeah, pretty would you call this a blowout quarter?

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Speaker 3: Is it a turnaround quarter?

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Speaker 17: What do you make of these numbers?

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Speaker 14: It's definitely a turnour around quarter. It's a pivot, if

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Speaker 14: you will. For the Disney story. Look, let me think

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Speaker 14: about Disney. We think about it from a kind of

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Speaker 14: tech perspective, a streaming perspective that doesn't start contrast to

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Speaker 14: what Disney's core business actually has been historically, which is

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Speaker 14: its international parks business. This is where their profit get

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Speaker 14: this rows by four times, sales increasing thirty five percent

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Speaker 14: year over years. So it looks like a lot of

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Speaker 14: more visitors and attendance when it comes to some of

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Speaker 14: their Disney parks, which again is not really the strategy

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Speaker 14: that they've been leaning into. They've really been leaning into

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Speaker 14: the media business, the Disney streaming business as well. When

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Speaker 14: you look at the subscriber count, that streaming service fell

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Speaker 14: to about one hundred and forty nine point six million

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Speaker 14: subscribers in the quarter of the projections for about one

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Speaker 14: hundred and fifty one point two million, So you can

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Speaker 14: see that those numbers coming in just a little bit softer.

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Speaker 14: But the forecast here is what really matters. That's what

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Speaker 14: investors are responding to Disney saying their profit it's going

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Speaker 14: to rise twenty percent, bringing up to about four dollars

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Speaker 14: and sixty cents to share. The estimate was four dollars

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Speaker 14: and twenty seven cents. If that wasn't enough to sweeten

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Speaker 14: the pot, they're also raising their dividend by fifty percent

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Speaker 14: and approving a three billion dollar stock buy back program.

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Speaker 14: All of this on the back of some pretty other

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Speaker 14: hefty deals that they've made. They've talked about this partnership

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Speaker 14: that was announced a couple of days ago, bundling ESPN

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Speaker 14: content with programming from Fox and Warner Brothers Discovery creating

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Speaker 14: an all new sports streaming service. So again, this is

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Speaker 14: something that Bob Eiger had warned about several quarters ago,

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Speaker 14: really watching for what they could do with their Hulu

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Speaker 14: business and their ESPN business, and it looks like we've

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Speaker 14: gotten those answers.

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Speaker 3: And with all those answers, Kritty, that raises the question

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Speaker 3: of whether all this is going to be enough to

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Speaker 3: fend off a lot of the pressure we've seen going

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Speaker 3: into these earnings from activist investors.

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Speaker 14: Yeah, and Nelson Pelts has not made Bob Aiger's life

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Speaker 14: any easier at all when it comes to them the

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Speaker 14: activist pressures. But again, this it all comes with the

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Speaker 14: territory of kind of trying out these new businesses. Now,

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Speaker 14: it looks like with some of the board seats here

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Speaker 14: for now and for the temp for the foreseeable future,

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Speaker 14: perhaps they can fend it off. But they really have

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Speaker 14: to deliver on some of these new strategies. The fact

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Speaker 14: that they are again doubling down on their streaming business,

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Speaker 14: a sports streaming business, at a time when their Disney

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Speaker 14: Plus streaming service is already coming in soft is a

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Speaker 14: pretty big deal. But their forecasts are so rosy now

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Speaker 14: they just have to execute on it. And remember this

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Speaker 14: is also coming with a pretty big steak that Disney

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Speaker 14: is taking now in gaming one point five billion dollars

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Speaker 14: to use me in Fortnite maker Epic Games. This is

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Speaker 14: a company that Disney had had to kind of go

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Speaker 14: to court, Apple had had to go to court for

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Speaker 14: as well. The fact that Disney is now taking a

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Speaker 14: steak in it is a pretty big deal.

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Speaker 3: Yeah, really interesting to hear that, coming, particularly after that

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Speaker 3: announcement on the sports streaming service, This one and a

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Speaker 3: half billion dollar steak in Epic Games. I'm sure that

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Speaker 3: peaked a lot of your interests given your background in

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Speaker 3: video game coverage in the past. What do you make

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Speaker 3: of this strategy of, you know, trying to lean even

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Speaker 3: more in tech when they've had so many struggles, at

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Speaker 3: least in the last couple of quarters on their more

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Speaker 3: traditional media business.

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Speaker 14: Well, I mean it speaks to them branching out for

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Speaker 14: our international audience that's listening to this. Nathan is referring

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Speaker 14: to the fact that I used to cover video games

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Speaker 14: as my very first speed at Bloomberg. The stocks of

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Speaker 14: it at least and what I learned from that is

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Speaker 14: that this is a growing business that has recently taken

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Speaker 14: on a lot of regulatory pressure, but it's one that

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Speaker 14: is a crowded space when you talk about some big games.

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Speaker 14: So when you see a game like Fortnite, for example,

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Speaker 14: really excelling, it makes it a very attractive acquisition target.

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Speaker 14: And that's exactly where Disney comes in here with that

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Speaker 14: one point five billion dollar steak. Because Fortnite has turned

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Speaker 14: out to be such a money maker for epic games,

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Speaker 14: Disney wants in on it. In terms of its broader strategy,

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Speaker 14: it's quite clear that Disney is doing what Disney hasn't

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Speaker 14: done historically, which is really diversify. They're talking about sports streaming,

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Speaker 14: they're talking about their Disney Services streaming, They're actually making

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Speaker 14: more money on their parks business, and now they're looking

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Speaker 14: at gaming as well. Not to mention Nathan, I can't

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Speaker 14: believe gone this far and not discussed Taylor's With's movie,

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Speaker 14: concert movie or whatever is hitting Disney Services. Mowana sequel

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Speaker 14: is coming out this year. The Taylor Swift story in

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Speaker 14: itself adds a lot of value to Disney.

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Speaker 3: Interesting. So what do you make of the track that

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Speaker 3: bob Iger is painting here the path ahead for the

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Speaker 3: rest of this year and beyond.

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Speaker 14: Well, look, he has just recently been reinstated. The history,

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Speaker 14: the management history matters here because Bob Iger had an

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Speaker 14: initial stint at the company and then was had I

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Speaker 14: left the company, and then is now coming back. Because

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Speaker 14: you start to see this pressure that he needs to

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Speaker 14: put Disney's balance sheet back on track. It kind of

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Speaker 14: seems like he's doing this, But Bob Iger's reputation historically

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Speaker 14: has been one of big moves, one where he takes

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Speaker 14: these kind of shots in the dark and says, guys

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Speaker 14: have a little bit of faith in me, and this

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Speaker 14: is what he does. So it's not surprising at all

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Speaker 14: that he's making these pretty big bets in both sports

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Speaker 14: streaming and gaming.

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