WEBVTT - OpenAI Halts Work on AI Model, US Invests in Counter Drone Tech, More

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<v Speaker 1>News when you want it with Bloomberg News Now, I'm

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<v Speaker 1>Dan Schwartzman. President Trump is once again considering removing Federal

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<v Speaker 1>Reserve Governor Lisa Cook over unproven allegations of mortgage fraud,

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<v Speaker 1>according to a letter. The letter gives Cook until August

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<v Speaker 1>twenty six to respond to the allegations, which your lawyer,

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<v Speaker 1>Abe Lowell says are quote baseless and have not been

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<v Speaker 1>tested in a court of law. The Supreme Court, in

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<v Speaker 1>a five to four decision back in June, allowed Cook

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<v Speaker 1>to remain in her job while she fought Trump's bid

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<v Speaker 1>to oust her over the mortgage fraud accusations, faulting the

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<v Speaker 1>President for not giving her notice and a chance to

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<v Speaker 1>be heard before trying to remove her. Open Ai is

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<v Speaker 1>halting some internal work around its upcoming Astra model to

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<v Speaker 1>build in stricter safeguards after the system was found to

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<v Speaker 1>be significantly more adept at cybersecurity tasks. The company said

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<v Speaker 1>it quote cannot rule out that Astra could become capable

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<v Speaker 1>of identifying and developing zero day exploits without human intervention,

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<v Speaker 1>which would reach a company's quote critical cybersecurity threshold. Open

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<v Speaker 1>Ai said it's now taking steps and improved security controls

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<v Speaker 1>for developing and testing newer models. The chat gibd creator

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<v Speaker 1>says it will work with government agencies and AI safety

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<v Speaker 1>organizations to test ASTRAS capabilities. President Trump said he'd like

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<v Speaker 1>rates to come down before the November midterms, but in

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<v Speaker 1>an interview with punch Bowl News, he acknowledged fedshair Kevin

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<v Speaker 1>Worsh can't do it on his own without the FED board.

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<v Speaker 1>This week, Bloomberg News reported the President has spoken to

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<v Speaker 1>worse several times since he took over as FED chair.

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<v Speaker 1>Why Now's economic advisor, Kevin Hasset says that shouldn't come

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<v Speaker 1>as a surprise.

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<v Speaker 2>Kevin Worsh and the President have a very close, long

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<v Speaker 2>term relationship from New York City, from Florida, and they

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<v Speaker 2>talk about the economy all the time. And I talked

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<v Speaker 2>to Kevin as well as does Scott Besson, and so

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<v Speaker 2>that's like not really news.

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<v Speaker 1>National Economic Council Director Kevin Hasset says he's sure the

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<v Speaker 1>President doesn't give Worsh interest rate advice. Hassett was a

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<v Speaker 1>guest on Bloomberg Radio and television. The US Army will

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<v Speaker 1>buy at least four hundred million dollars worth of counter

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<v Speaker 1>drone lasers from Arlington, Virginia based air Revironment. That's according

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<v Speaker 1>to a person familiar with the matter. Militaries around the

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<v Speaker 1>world are seeking ways to knock down the unmanned systems

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<v Speaker 1>proliferating your cross modern battlefields. The AI Assistant Locust system tracks, identifies,

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<v Speaker 1>and helps human operators destroy small to medium sized drones

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<v Speaker 1>with a high energy laser. The deal would represent the

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<v Speaker 1>Pentagon's first production contract for a directed energy counter drone system.

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<v Speaker 1>Beyond the prototype phase, wage growth continues to lag behind inflation,

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<v Speaker 1>and the Federal Reserve Board members are divided on when

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<v Speaker 1>to step in as inflation persists. Jared Bernstein, a former

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<v Speaker 1>White House Economic advisor, commented on Bloomberg's Balance of Power.

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<v Speaker 3>Three point two percent. That's the year over year wage growth.

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<v Speaker 3>That's the lowest we've seen since the pandemic. And so

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<v Speaker 3>the folks at the Fed recognize that whatever inflation we're

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<v Speaker 3>seeing isn't coming from the labor market. That means that

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<v Speaker 3>it's largely coming from the supply side of the equation.

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<v Speaker 3>The tariffs of the war, along with some pressure from

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<v Speaker 3>AI picks and shovel.

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<v Speaker 1>That's former White House Economic advisor Jared Bernstein on Bloomberg's

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<v Speaker 1>Balance of Power. SpaceX shares jump for a second straight day,

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<v Speaker 1>ahead nearly sixteen percent, bringing them close to breaking back

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<v Speaker 1>above the company's one hundred and thirty five dollars IPO price.

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<v Speaker 1>The lock up expiration more than doubled the total number

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<v Speaker 1>of shares available to trade to one point five to

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<v Speaker 1>five billion. Since SpaceX went public, nearly eighty percent of

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<v Speaker 1>analysts covering SpaceX have given the stocka by rating. Oil

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<v Speaker 1>steadied as tensions in the Middle East flared, while traders

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<v Speaker 1>monitored progress toward a deal between Iran and Oman to

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<v Speaker 1>restore shipping through the Strait or Hormuz. Brands settled above

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<v Speaker 1>eighty three dollars a barrel, though still notching a third

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<v Speaker 1>trade weekly loss. Futures have been highly sensitive to headlines

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<v Speaker 1>around the terms and timing of a potential packed on

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<v Speaker 1>the Waterway that could restore millions of barrels of Middle

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<v Speaker 1>Eastern supply. The price of food around the globe took

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<v Speaker 1>higher in July to the highest amount in more than

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<v Speaker 1>three years. The United Nations's Index of Food Commodity Prices

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<v Speaker 1>finds that the point six percent increase was led by grain, sugar,

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<v Speaker 1>and vegetable oils. Intensifying attacks and extreme heat are fueling

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<v Speaker 1>fear over supplies from the Black Sea grain region and Europe,

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<v Speaker 1>while worsening dryness threatens corn and soybean needs in major

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<v Speaker 1>growing areas in the US. It was legislation championed by

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<v Speaker 1>the late Senator Lindsay Graham. Today the Senate passed the

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<v Speaker 1>sweeping new Russia Sanctions Bill, authorizing punishing tariffs on China, India,

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<v Speaker 1>and other top buyers of the country's oil and gas,

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<v Speaker 1>as well as extended her on sanctions. Democratic Senator Richard Blumenthal,

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<v Speaker 1>speaking during a news conference following.

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<v Speaker 4>The vote, these sanctions are the most consequential that have

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<v Speaker 4>been imposed on Russia's financial institutions, its industrial base, its

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<v Speaker 4>shadow fleet, and all who continue to enable Russia's reign

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<v Speaker 4>of terror since the beginning of this war.

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<v Speaker 1>That's Democratic Senator Richard Blumenthal. The legislation has been dramatically

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<v Speaker 1>narrowed from a version drafted last year in order to

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<v Speaker 1>win the backing of President Trump, who ended most direct

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<v Speaker 1>aid to Ukraine in favor of selling weapons to the

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<v Speaker 1>country often pay for buy America's European allies. The measure

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<v Speaker 1>must still pass the House. He's calling the order quote horrendous,

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<v Speaker 1>politically motivated, and unlawful. President Trump says he will be

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<v Speaker 1>appealing to the Supreme Court after federal appeals court ruled

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<v Speaker 1>today he lacks a legal authority to build his sprawling

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<v Speaker 1>White House ballroom without congressional approval. We get more from Bloomberg'

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<v Speaker 1>Josh Wingrove.

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<v Speaker 5>What we're going to continue to see as this legal fight,

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<v Speaker 5>drakes On is just a profile from it. Whether it's

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<v Speaker 5>those or the reflecting pool, I should add, and the

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<v Speaker 5>President continues to be very interested in them, So I

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<v Speaker 5>don't think I'm not surprised that he's going all the

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<v Speaker 5>way to the Supreme Court. We'll see what they say.

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<v Speaker 5>They've given him a lot of leeway in todate.

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<v Speaker 1>That's Bloomberg Josh Wingrove. A split three judge panel ordered

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<v Speaker 1>construction to stop on the ninety thousand square foot ballroom,

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<v Speaker 1>but stayed its decision for two weeks to allow the

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<v Speaker 1>administration time to appeal. The decision marks a blow for Trump,

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<v Speaker 1>who has focused intensely on his construction projects in Washington,

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<v Speaker 1>of which his planned ballroom is the centerpiece. Republican Senator

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<v Speaker 1>Bill Cassidy said he will support Todd Blanche by the

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<v Speaker 1>next Attorney General. Cassidy acknowledge that Blanche had shown quote

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<v Speaker 1>poor judgment in certain matters, but also said Blanche knows

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<v Speaker 1>the law and his a quote hands on administrator. Blanche

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<v Speaker 1>winning Cassidy support is likely to be decisive in resolving

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<v Speaker 1>the week's long saga over Trump's decision. The biggest former

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<v Speaker 1>personal attorney to lead the Justice Department US Supreme Court

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<v Speaker 1>Justice Samuel Alito, telling The Wall Street Journal that he

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<v Speaker 1>is quote here for another term. The seventy six year

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<v Speaker 1>old conservative who wrote the twenty twenty two ruling overturning

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<v Speaker 1>the constitutional right to abortion, has been at the center

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<v Speaker 1>of retirement speculation as a November midterm elections approach. That's

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<v Speaker 1>news when you won it with Bloomberg News. Now I'm

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<v Speaker 1>Dan Schwartzman, and this is Bloomberg