WEBVTT - White House Issues Shutdown Warning; Kimmel Attracts Record Audience

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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.

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<v Speaker 3>Karen, we begin with politics.

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<v Speaker 4>With less than a week to go until a possible

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<v Speaker 4>government shut down, the White House is telling federal agencies

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<v Speaker 4>to make plans well beyond what they've done in the past.

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<v Speaker 3>We get the story from Bloomberg's Genus Cervetti.

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<v Speaker 5>The White House Budget Office is telling agencies to plan

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<v Speaker 5>for mass firings during a shutdown. In the past, government

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<v Speaker 5>workers deemed non essential have been furloughed and brought back

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<v Speaker 5>when funding is restored, usually with back pay. This time,

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<v Speaker 5>a White House memo is directing agencies to identify programs

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<v Speaker 5>with discretionary funding that's set to lapse, then draft plans

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<v Speaker 5>to eliminate jobs that don't align with Trump administration priorities.

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<v Speaker 5>House Minority Leader Hakeeen Jeffries posted on x that Democrats

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<v Speaker 5>won't be intimidated by the threat of mass firings. President

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<v Speaker 5>Trump canceled plans to meet with Democrats today on avoiding

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<v Speaker 5>a shutdown. Funds are set to lapse this Wednesday. Gina

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<v Speaker 5>Servetti Bloomberg Radio.

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<v Speaker 2>Gina thank you at top judiciary official as warning federal

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<v Speaker 2>courts will run out of money to fully operate as

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<v Speaker 2>soon as next week if Congress fails to avoid a

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<v Speaker 2>government shutdown. Judge Robert Conrad says the judiciary has funds

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<v Speaker 2>to sustain operations through October third, but tight budgets have

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<v Speaker 2>reduced the ability to extend operations.

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<v Speaker 4>Later today, Karen, President Trump meets with the leaders of

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<v Speaker 4>Turkey and Pakistan. He'll welcome Turkish president Retship tie Up

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<v Speaker 4>Ertawan late in the morning. Ertawan is helping to reset

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<v Speaker 4>ties that have been shaken by tariffs and Turkey's purchases

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<v Speaker 4>of Russian weapons. Turkish officials say today's meeting could clear

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<v Speaker 4>the path for more than fifty billion dollars of deals

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<v Speaker 4>on US liquified natural gas, Lockheed Martin fighter jets, and

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<v Speaker 4>Boeing planes. Then this afternoon, President Trump meets with Pakistan's

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<v Speaker 4>Prime Minister Shabaz Sharif. Pakistan's leaders have nominated President Trump

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<v Speaker 4>for the Nobel Peace Prize. They've credited him with brokering

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<v Speaker 4>a ceasefire with India in May. Pakistan has secured a

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<v Speaker 4>nineteen percent terrifreight with the US, much lower than India's

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<v Speaker 4>rate of fifty percent.

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<v Speaker 2>Let's turn to Late Night Now, Nathan and Jimmy Kimmels

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<v Speaker 2>returned to TV drew his biggest audience ever. At the

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<v Speaker 2>same time, though ABC is preparing for a legal battle

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<v Speaker 2>and blimberge. John Tucker joins us with the details. John,

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<v Speaker 2>good morning, and Hey, let's start with those ratings for

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<v Speaker 2>the show. What did they show?

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<v Speaker 6>Well, Karen, six point two six million people tuned in

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<v Speaker 6>to see Jimmy Kimme alive.

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<v Speaker 7>We are back to work doing our show.

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<v Speaker 6>Compare that to one point five to five million viewers

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<v Speaker 6>the show has averaged this year. This according to Nielsen Data. Well,

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<v Speaker 6>the numbers don't include viewers who watched the program on

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<v Speaker 6>streaming services, and the total was particularly high considering that

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<v Speaker 6>next Our Media and Sinclaire, two large owners of ABC affiliates,

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<v Speaker 6>didn't air the show. Together, they reach about twenty five

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<v Speaker 6>three percent of US households. Now, as far as the

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<v Speaker 6>legal issues, ABC parent Walt Disney preparing for President Trump

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<v Speaker 6>to retaliate the companies, anticipating the Trump administration might go

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<v Speaker 6>after its broadcast TV licenses. Disney's also seeking regulatory approval

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<v Speaker 6>from federal agencies for two deals, one to acquire media

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<v Speaker 6>assets from the NFL, another to merge with Pooboo TV

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<v Speaker 6>with its Hulu Live TV service. Last year, Disney did cave,

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<v Speaker 6>paying sixteen million dollars to settle a lawsuit brought by

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<v Speaker 6>the President over alleged defamatory comments made by ABC News

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<v Speaker 6>hosts George Stephanopoulos, You Know York on John Tucker Bloomberg Radio.

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<v Speaker 4>All right, John, thank you, turning to the economy now.

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<v Speaker 4>Jobless claims, trade and durable goods orders will be released

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<v Speaker 4>later this morning, but the real market focus may be

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<v Speaker 4>on the enormous number of FED speakers we'll be hearing

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<v Speaker 4>from today. Let's get the details from Bloomberg's Michael McKee.

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<v Speaker 8>By the end of this week, there should be no

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<v Speaker 8>question about where individual FED policymakers stand on rap cuts,

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<v Speaker 8>regulation and the dollar. Fourteen of the nineteen members of

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<v Speaker 8>the Rate Setting Open Market Committee are speaking, including seven today.

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<v Speaker 8>New Governor Stephen Myron leads off with an interview on

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<v Speaker 8>Bloomberg Radio this morning, followed by Chicago's Austin Goulsby, Kansas

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<v Speaker 8>Cities Jeffrey Schmid, Governors Mickey Bowman, and Michael Barr Lori

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<v Speaker 8>Logan of Dallas, and Mary Daily of San Francisco. What

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<v Speaker 8>will we learn if CHREMYN. Powell's comments earlier this week

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<v Speaker 8>are any indication. Maybe not much. We've not had much

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<v Speaker 8>in the way of economic data that could shape the

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<v Speaker 8>vote at the end of next month. Michael McKee Bloomberg Radio.

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<v Speaker 2>San Francisco FED President Mary Daly says further interest rate

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<v Speaker 2>cuts are likely needed, but the Central Bank should approach

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<v Speaker 2>those with caution. Daily spoke at an event at the

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<v Speaker 2>University of Utah.

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<v Speaker 9>Now, my own view is that further policy adjustments are likely.

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<v Speaker 9>Will they come right now this year, are going forward?

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<v Speaker 9>It's hard to say. But what's really important is that

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<v Speaker 9>making those policy adjustments will likely be required to balance

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<v Speaker 9>both of our goals. Keep pressure on inflation to bring

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<v Speaker 9>it to price stability, and offer support to the labor

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<v Speaker 9>market to ensure that it stays near full employment.

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<v Speaker 2>San Francisco FED President Mary Daily says she fully supported

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<v Speaker 2>this Central Bank's decision less we to cut interest rates

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<v Speaker 2>for the first time since December.

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<v Speaker 4>Looking at the equity markets this morning, Karen futures are

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<v Speaker 4>kind of taking a breather this morning, following back to

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<v Speaker 4>back losses on Wall Street. Amanda Agatti is chief Investment

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<v Speaker 4>Officer of Asset Management at P and C Banks.

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<v Speaker 3>She remains bullish.

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<v Speaker 10>With the FED and rate cutting mode here. The backdrop

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<v Speaker 10>is pretty supportive for markets, but I think at some point,

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<v Speaker 10>you know, things are going to get a little bit choppy.

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<v Speaker 10>You know, we can't be priced for perfection here in

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<v Speaker 10>a backdrop that is not necessarily perfect. But I do

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<v Speaker 10>think that the earnings growth backdrop in particular looks really

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<v Speaker 10>interesting and somewhat bullish heading into twenty twenty six.

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<v Speaker 4>P and C Bank's Amanda Gotti says stocks may rise

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<v Speaker 4>another three to five percent by the end of this year.

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<v Speaker 2>In company news, Nathan Intel shares are up another three

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<v Speaker 2>and a half percent this morning, following yesterday's six percent gain.

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<v Speaker 2>Bloomberg News has learned that chip maker is seeking an

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<v Speaker 2>investment from Apple. We're told it's part of Intel's effort

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<v Speaker 2>to bolster business now that it's partially owned by the

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<v Speaker 2>US government. Bloomberg's Ryan Gould broke the story.

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<v Speaker 11>This obviously comes on the back of both the US

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<v Speaker 11>government investing in Intel directly one of its largest shareholders,

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<v Speaker 11>and also would potentially follow a five billion dollar investment

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<v Speaker 11>from both in Nvidia and a two billion dollar investment

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<v Speaker 11>from SoftBank. I guess one way to put this all

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<v Speaker 11>together is you know Intel is on the comeback.

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<v Speaker 2>And Bloomber's Ryan Gould reports Intel also has reached out

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<v Speaker 2>to other companies about possible investments and partnerships.

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<v Speaker 4>And Karen HSBC says it's made a tech breakthrough deploying

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<v Speaker 4>quantum computing in financial markets. The bank says it's the

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<v Speaker 4>first time real trades have been used at scale to

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<v Speaker 4>show the potential benefits of this emerging technology. Bloomberg's Tiwa

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<v Speaker 4>Autubio has more from London.

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<v Speaker 12>Now, this wasn't live trading, it was a trial. It

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<v Speaker 12>was also a collaboration with IBM. They used their most

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<v Speaker 12>advanced heron quantum processor and they say that that shows

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<v Speaker 12>they're able to attain a thirty four percent improvement in

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<v Speaker 12>predicting how likely a bond will trade at a given price.

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<v Speaker 4>That was Bloomberg's Tiwa Audobio.

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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 were joined by Bloomberg's Michael Barr or

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<v Speaker 2>Michael good Morning, Good.

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<v Speaker 13>Morning, Karen. The motives of a shooter who authorities say

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<v Speaker 13>opened fire from a roof on to a us ICE

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<v Speaker 13>location in Dallas remain unclear. The man used rifle to

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<v Speaker 13>kill one detainee and wound two others in a transport

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<v Speaker 13>man before taking his own life. The suspected gunman has

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<v Speaker 13>been identified as Joshua John and was twenty nine years old.

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<v Speaker 13>Authorities say he seemed to fire indiscriminately. The FBI said

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<v Speaker 13>ammunition found at the scene contained anti ICE messaging. Vice

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<v Speaker 13>President JD. Van spoke about deadly shooting, calling it politically motivated.

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<v Speaker 14>You don't have to agree with Donald Trump's immigration policies,

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<v Speaker 14>but if your political rhetoric encourages violence against our law enforcement,

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<v Speaker 14>you can go straight to hell and you have no

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<v Speaker 14>place in the political conversation of the United States of America.

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<v Speaker 13>House Minority Leader Hakim Jeffries also commented on the shooting,

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<v Speaker 13>saying the level of political violence in the country is

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<v Speaker 13>far too high.

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<v Speaker 7>We need leadership that brings people together, not national leadership that.

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<v Speaker 3>Tears people apart.

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<v Speaker 13>Authority say no ICE agents were injured and the surviving

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<v Speaker 13>detainees are in critical condition. The NVPD arrested a man

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<v Speaker 13>after a tourist was killed and her husband was critically

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<v Speaker 13>injured after they were struck by a vehicle in midtown Manhattan.

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<v Speaker 13>It happened yesterday afternoon at fortieth Street and Fifth Anue.

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<v Speaker 13>According to police, a blue Toyota van hit the pedestrians,

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<v Speaker 13>believed to be tourists from Germany, and then fled the scene.

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<v Speaker 13>The woman, also in her fifties, died at the scene.

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<v Speaker 13>Her husband is in critical condition. The driver, a forty

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<v Speaker 13>year old man, was arrested at Eighth Avenue and West

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<v Speaker 13>thirty eighth Street. Palestinian leader Mak moved to Boss will

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<v Speaker 13>speak before the UN General Assembly today. The Boss will

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<v Speaker 13>speak virtually. Yesterday, Ukraine's President vladimir's Lenski told the UN

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<v Speaker 13>that international diplomacy is failing his country and that the

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<v Speaker 13>only way to stop the fighting is to fight back militarily.

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<v Speaker 15>As Russia's war against my country goes on, people are

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<v Speaker 15>still dying every week, Yet there is no cease fire

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<v Speaker 15>because Russia refuses.

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<v Speaker 13>Global news twenty four hours a day and whenever you

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<v Speaker 13>want it with the Bloomberg News. Now now, Michael Barn,

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<v Speaker 13>this is Bloomberg.

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<v Speaker 6>Karen.

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<v Speaker 2>Thanks Michael, time now for our Bloomberg Sports Update, and

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<v Speaker 2>for that we bring John Stashauers.

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<v Speaker 16>Thanks, Garrener's a big knight for American laying home run hitters.

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<v Speaker 16>In New York, Aaron Judge two home runs numbers fifty

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<v Speaker 16>and fifty one on the season. The Yankees beat the

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<v Speaker 16>White Sox nine to one and they move into a

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<v Speaker 16>tie for first place in the AL East with Toronto.

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<v Speaker 16>And then in Seattle, Cal Riley with two home runs

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<v Speaker 16>numbers fifty nine and sixty the Mariners beat the Rockies

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<v Speaker 16>nine to two. They've won sixty to the last seventeen.

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<v Speaker 16>Seattle has clinched the AL West. They're three teams vying

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<v Speaker 16>to make the last playoff spot in the National League.

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<v Speaker 3>All lost.

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<v Speaker 16>The Mets remade one game ahead of the Reds and Diamondbacks.

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<v Speaker 3>That's the Bloomberg Sports Update.

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<v Speaker 2>Stay with us more from Bloomberg day Break coming up

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<v Speaker 2>after this.

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

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<v Speaker 1>and around the world on Bloomberg dot Com and the

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<v Speaker 1>Bloomberg Business opp This is Bloomberg Daybreak.

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<v Speaker 3>Good morning, I'm Nathan Hager.

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<v Speaker 4>Six days to go until a possible government shut down

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<v Speaker 4>in Washington, and the White House is apparently telling agencies

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<v Speaker 4>to make more drastic preparations than they've done before. A

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<v Speaker 4>memo has gone out calling for mass firings if they

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<v Speaker 4>can't reach an agreement with Democrats by Wednesday. House Minordi

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<v Speaker 4>Leader Hakim Jeffrey says Democrats are still willing to negotiate.

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<v Speaker 7>If the government shuts down, it will shut down because

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<v Speaker 7>Donald Trump and Republicans in the House and the Senate

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<v Speaker 7>have made that decision so intentionally inflict pain on the

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<v Speaker 7>American people.

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<v Speaker 3>It was House Minoriti Leader Hakim Jeffries.

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<v Speaker 4>For more on this, we're joined by Bloomberg News editor

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<v Speaker 4>Alexander Pearson and Alexando In the past, when there have

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<v Speaker 4>been government shut downs, the non essential workers get furloughed

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<v Speaker 4>and then when the funding comes back, they usually get

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<v Speaker 4>back pay. But this memo about mass firings does seem

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<v Speaker 4>to take things pretty far.

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<v Speaker 17>Good morning, Yeah, good morning, Nathan, thanks for having me. Yeah,

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<v Speaker 17>that's right. Previously, non essential workers usually we get furlowed

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<v Speaker 17>in this kind of situation and then return and get

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<v Speaker 17>back pay. But this memo from the Office of Management

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<v Speaker 17>and Budget, which was sent out yesterday to federal agencies

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<v Speaker 17>actually outlines or actually asked for plans to fire those

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<v Speaker 17>non essential workers or at least some of them, but

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<v Speaker 17>are not aligned with Trump administration priorities. If there is

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<v Speaker 17>no government funding resolution by the end of the month,

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<v Speaker 17>and that certainly is you know, new and quite a

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<v Speaker 17>significant move by this administration.

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<v Speaker 4>Of course, this comes just a couple of days after

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<v Speaker 4>President Trump was set to meet with Democrats at the

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<v Speaker 4>White House to try to come to some kind of

0:12:28.520 --> 0:12:32.640
<v Speaker 4>impass around the healthcare demands that Democrats have made.

0:12:32.679 --> 0:12:34.160
<v Speaker 3>That meeting has been called off.

0:12:35.160 --> 0:12:38.360
<v Speaker 4>Could we view this as potentially a negotiating tactic on

0:12:38.440 --> 0:12:39.360
<v Speaker 4>the White House's part.

0:12:40.320 --> 0:12:43.199
<v Speaker 17>Yeah, I think that's accurate. I think this is most

0:12:43.240 --> 0:12:46.320
<v Speaker 17>likely an attempt by the administration to up the ante

0:12:46.440 --> 0:12:51.120
<v Speaker 17>on Congressional Democrats who haven't budged from the provisions that

0:12:51.120 --> 0:12:53.960
<v Speaker 17>they want to add to the stopgap measure to fund

0:12:54.000 --> 0:12:59.040
<v Speaker 17>the government. And certainly, you know, if Democrats will not

0:12:59.080 --> 0:13:01.439
<v Speaker 17>be wanted to be seen to be the party that

0:13:02.240 --> 0:13:04.400
<v Speaker 17>a were associated with the government shut down, but also

0:13:04.800 --> 0:13:07.800
<v Speaker 17>a government shutdown that could lead to mass firings of

0:13:07.920 --> 0:13:11.440
<v Speaker 17>federal employees, especially after all of the firings that have

0:13:11.440 --> 0:13:14.280
<v Speaker 17>occurred in the federal government since the Trump administration took

0:13:14.320 --> 0:13:15.200
<v Speaker 17>office in January.

0:13:15.720 --> 0:13:18.720
<v Speaker 4>Yeah, and we've seen reports that those firings have been

0:13:19.320 --> 0:13:22.680
<v Speaker 4>reversed in some cases that some agencies may have felt

0:13:22.760 --> 0:13:26.719
<v Speaker 4>like the layoffs went too far. Where are Democrats on

0:13:26.800 --> 0:13:29.400
<v Speaker 4>this right now? What is the reaction from the Democratic

0:13:29.440 --> 0:13:30.440
<v Speaker 4>Party to this memo?

0:13:32.120 --> 0:13:36.200
<v Speaker 17>Right now? The reaction has been, you know, understandably hostile.

0:13:36.480 --> 0:13:40.600
<v Speaker 17>Hakim Jeffries tweeted out overnight responding to a report on

0:13:40.679 --> 0:13:45.800
<v Speaker 17>this memo that you know, this was unacceptable was essentially

0:13:45.800 --> 0:13:48.880
<v Speaker 17>his message to Russell Void, the head of the Office

0:13:48.920 --> 0:13:52.400
<v Speaker 17>of Management and Budget. So their message is very much,

0:13:52.480 --> 0:13:54.880
<v Speaker 17>you know, we're not intimidated by this tactic. We're going

0:13:54.960 --> 0:13:57.560
<v Speaker 17>to continue making the demands that we've been making to

0:13:58.880 --> 0:14:03.120
<v Speaker 17>fund the government past September thirtieth. So that's the message

0:14:03.200 --> 0:14:04.960
<v Speaker 17>right now. Whether you know they'll be able to stick

0:14:05.000 --> 0:14:07.720
<v Speaker 17>to that for the next few days, you know, which

0:14:08.000 --> 0:14:08.319
<v Speaker 17>we have.

0:14:08.280 --> 0:14:10.760
<v Speaker 4>To see and in just thirty seconds, I mean, if

0:14:10.760 --> 0:14:13.360
<v Speaker 4>this layoff a process goes forward, I.

0:14:13.360 --> 0:14:15.480
<v Speaker 3>Mean that could have a major economic impact, couldn't it.

0:14:16.640 --> 0:14:19.280
<v Speaker 17>That's true? Yeah, I mean, you know, government spending obviously

0:14:19.280 --> 0:14:23.920
<v Speaker 17>makes up quite a significant chunk of economic activity, particularly

0:14:23.920 --> 0:14:26.560
<v Speaker 17>the federal government. So you know, the longer a shutdown

0:14:26.640 --> 0:14:28.520
<v Speaker 17>drives on, the more of an impact it can have

0:14:29.200 --> 0:14:33.920
<v Speaker 17>on overall economic activity. So you know, both sides will

0:14:34.200 --> 0:14:36.520
<v Speaker 17>ultimately want to come to a resolution if it comes

0:14:36.520 --> 0:14:39.040
<v Speaker 17>to a shutdown, but obviously they want to avoid a

0:14:39.040 --> 0:14:41.720
<v Speaker 17>shutdown to begin with. So the next few days are

0:14:41.720 --> 0:14:43.960
<v Speaker 17>going to be very interesting to see who might, you know,

0:14:44.040 --> 0:14:45.480
<v Speaker 17>compromise first to try and get.

0:14:45.360 --> 0:14:46.000
<v Speaker 13>To a resolution.

0:14:47.640 --> 0:14:51.080
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