WEBVTT - Trump Warns Netflix-Warner Deal May Pose Antitrust ‘Problem’, Farm Aid Program Details

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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 Lisa Matteo. Here

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<v Speaker 2>are the top stories we're following today.

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<v Speaker 3>Lisa, we begin with new developments this morning on Warner

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<v Speaker 3>Brothers Discovery. President Trump is flagging concerns over Netflix, has

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<v Speaker 3>planned seventy two billion dollar acquisition of the company. The

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<v Speaker 3>deal is still in its early stages, but it would

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<v Speaker 3>bring together the world's dominant streaming service with the iconic

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<v Speaker 3>Hollywood movie studio. Praising Netflix CEO Ted Sarandos, whom he

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<v Speaker 3>met with recently, President Trump, though, is hinting to reporters

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<v Speaker 3>that regulators could take issue with the size of the

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<v Speaker 3>combined entity.

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<v Speaker 4>And he's done one of the greatest jobs in the

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<v Speaker 4>history of movies and other things that He's got a

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<v Speaker 4>lot of interesting things happening aside from what you're talking about.

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<v Speaker 4>But it is a big market channel, there's no question

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<v Speaker 4>about it.

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<v Speaker 5>It could be a problem.

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<v Speaker 3>President Trump hosted Serrandos at the White House in mid November,

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<v Speaker 3>when the pair discussed the deal and checking shares of

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<v Speaker 3>Warner Brothers Discovery in the pre market, they are down

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<v Speaker 3>two percent.

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<v Speaker 6>Well. Staying in Washington, Nathan.

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<v Speaker 2>Later today, President Trump he plans to unveil a long

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<v Speaker 2>awaited aid package for farmers, a White House official tells Bloomberg.

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<v Speaker 2>The twelve billion dollar package includes eleven billion dollars in

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<v Speaker 2>one time payments under the Agriculture Department's farmer Bridge Assistance program.

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<v Speaker 2>The move comes with farmers getting more frustrated about China's

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<v Speaker 2>slow pace of resuming soybean and other agricultural purchases, but

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<v Speaker 2>US Trade Representative Jamison Greer says China is holding up

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<v Speaker 2>its end to the trade agreement with the US.

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<v Speaker 7>The commitments are quite specific. They're about purchasing a certain

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<v Speaker 7>amount of soybeans, for example, through the rest of this

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<v Speaker 7>growing season and then each of the next years. These

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<v Speaker 7>are things that are quantifiable. The data are clear. We've

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<v Speaker 7>already seen that the Chinese are getting to about a

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<v Speaker 7>third of the way through their purchase commitment for this

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<v Speaker 7>growing season.

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<v Speaker 2>US Trade Representative Jamison Greer appeared on Fox News. President

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<v Speaker 2>Trump is scheduled to unveil the farm aid this afternoon

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<v Speaker 2>at two pm Wall Street time, and an event with

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<v Speaker 2>crop farmers, Treasury Secretary Scott Besson and Agriculture Secretary Brook Rollins.

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<v Speaker 5>Ahead of that event Lisa.

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<v Speaker 3>Treasury Secretary Besson says the Trump administration is focused on affordability.

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<v Speaker 5>He spoke yesterday on CBS's Face the Nation.

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<v Speaker 8>Democrats created scarcity, whether it's an energy or over regulation,

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<v Speaker 8>that we are now seeing the suffordability problem, and I

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<v Speaker 8>think next year we're going to move on to prosperity.

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<v Speaker 3>The Treasury Secretary Scott Besson says he expects the US

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<v Speaker 3>economy to end the year with three percent GDP growth.

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<v Speaker 3>And you can catch CBS's face the Nation Sunday afternoons

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<v Speaker 3>on Bloomberg Radio.

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<v Speaker 2>Turning now to geopolitics, Nathan Defense Secretary Pete Hegseth he's

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<v Speaker 2>doubling down on deadly air strikes on suspected drug running

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<v Speaker 2>boats off the Venezuelan coast. At the Reagan Defense Forum

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<v Speaker 2>in California over the weekend, Hegseth defended Admiral Frank Bradley

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<v Speaker 2>for ordering a second strike that killed survivors aboard one

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<v Speaker 2>vessel on September second.

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<v Speaker 5>From what I understood then and what I understand now,

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<v Speaker 5>I fully support that strike. I would have made the

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<v Speaker 5>same call myself.

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<v Speaker 2>Defense Secretary Pete Hegseth says the Pentagon is reviewing video

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<v Speaker 2>of the attack. He's declining to say whether it will

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<v Speaker 2>be released to the public. Jim Hins is a top

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<v Speaker 2>Democrat on the House Intelligence Committee.

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<v Speaker 6>He says a video should come to light.

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<v Speaker 9>I think it's really important that people see what it

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<v Speaker 9>looks like when the full force of the United States

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<v Speaker 9>military has turned on two guys who are clinging to

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<v Speaker 9>a piece of wood and about to go under, just

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<v Speaker 9>so that they have sort of a visceral feel for

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<v Speaker 9>what it is that we're doing.

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<v Speaker 2>Democratic Congressman Jim Hines appeared on CBS's Face a Nation

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<v Speaker 2>Heard every Sunday on Bloomberg Radio.

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<v Speaker 3>Let's turn now, Lisa to the latest developments on ending

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<v Speaker 3>the war in Ukraine. UK Prime Minister Keir Starmer is

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<v Speaker 3>set to host Ukrainian President Vladimir Zelenski in London today.

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<v Speaker 3>The leaders of France and Germany will join the meeting

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<v Speaker 3>as well. Tony Halpin leads Bloomberg's Economic and government coverage

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<v Speaker 3>of Russia.

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<v Speaker 10>The Europeans are trying to bolster the Ukraine's leverage at

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<v Speaker 10>this time because they themselves are not there, but at

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<v Speaker 10>the same time they want to help Ukraine maintain its

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<v Speaker 10>positions in the face of what is fairly considerable pressure

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<v Speaker 10>to agree to a deal. And the US has been

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<v Speaker 10>in direct negotiations with Ukraine and has been direct negotiations

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<v Speaker 10>with Russia. The peace plan that they are talking about

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<v Speaker 10>originated as a joint US Russia peace plan, and so

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<v Speaker 10>the European leaders are trying to ensure that Zelensky isn't

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<v Speaker 10>pushed into a corner and agrees to a deal that

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<v Speaker 10>doesn't secure Ukraine's long term security.

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<v Speaker 5>That's Bloomberg's Tony Halpin.

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<v Speaker 3>President Trump says he's disappointed in Zelenski's handling of the

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<v Speaker 3>US proposal to.

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<v Speaker 6>End the war well staying in Europe. Nathan JP.

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<v Speaker 2>Morgan CEO Jamie Diamond says bureaucracy is having a significant

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<v Speaker 2>impact on the continent's growth prospects. In an interview over

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<v Speaker 2>the weekend with Bloomberg's Caroline Hyde, Diamond also said a

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<v Speaker 2>fracturing of the continent could become a major problem for

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<v Speaker 2>the US.

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<v Speaker 11>If they fragment, you know, then you could say that

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<v Speaker 11>you know that America First will not will not be

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<v Speaker 11>around anymore. We It will hurt us more than anybody

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<v Speaker 11>else because they are a major ally in every single way,

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<v Speaker 11>including common values, which are really important. So therefore I

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<v Speaker 11>think we should be using our American capabilities trained coercion, democracy, trade,

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<v Speaker 11>investment to urge them to do it in their own

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<v Speaker 11>self interest.

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<v Speaker 2>Diamond's comments come at a difficult moment for US European relations,

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<v Speaker 2>as the two sides find themselves increasingly at odds on

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<v Speaker 2>issues ranging from Ukraine to trade and regulation. For the

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<v Speaker 2>full conversation, head over to the Bloomberg podcast channel on YouTube.

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<v Speaker 3>Turning the Market's Now, Lisa, Futures are mixed this morning

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<v Speaker 3>ahead of Wednesday's rate decision from the Federal Reserve, and

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<v Speaker 3>we have a couple of big market calls this morning.

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<v Speaker 3>Morgan Stanley's Mike Wilson says US equities face a quote

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<v Speaker 3>bullish setup given expectations of great cuts and the outlook

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<v Speaker 3>for improving earnings. John Staltzfis, chief investment strategist at Oppenheimer

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<v Speaker 3>Asset Management, says the S and P five hundred will

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<v Speaker 3>surge eighteen percent in twenty twenty six as earnings per

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<v Speaker 3>share continue to rise in double digits, and Wall Street

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<v Speaker 3>Research veteran ed Yard Denny is now recommending underweighting the

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<v Speaker 3>magnificent seven megacap tech stocks versus the rest of the

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<v Speaker 3>s and P five hundred.

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<v Speaker 12>It's hard to recommend overweighting something that's already quite overweight.

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<v Speaker 12>I mean, if you just told people just to maintain

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<v Speaker 12>the current weight of the index, that would still be

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<v Speaker 12>an overweight position relative to what most people will think

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<v Speaker 12>would be a diversified portfolio.

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<v Speaker 3>And your Denny of Yard Denny Research instead recommends investing

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<v Speaker 3>in financials, industrials, and healthcare.

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<v Speaker 2>In company news, Nathan the Wall Street Journal reporting IBM

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<v Speaker 2>is in advanced negotiations to acquire data infrastructure firm Confluent

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<v Speaker 2>for about eleven billion dollars. The paper says a deal,

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<v Speaker 2>which would mark one of IBM's biggest acquisitions in recent years,

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<v Speaker 2>could be announced as early as today. Chairs of Confluent

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<v Speaker 2>are thirty one percent in early trading.

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<v Speaker 13>Time.

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<v Speaker 2>Now for a look at some of the other stories

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

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<v Speaker 2>we're joined by Bloomberg's Michael bar Good morning, Michael.

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<v Speaker 14>Good morning, Lisa. A pre trial hearing is schedule to

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<v Speaker 14>resume today with the man accused of killing the CEO

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<v Speaker 14>of United Healthcare. A New York judge is considering whether

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<v Speaker 14>certain pieces of evidence can be used against Luigi Mangione

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<v Speaker 14>during his state trial. Mangioni's defense attorneys said that the

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<v Speaker 14>police did not read their client his Miranda rights. New

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<v Speaker 14>images were released over the weekend from the day of

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<v Speaker 14>Mangione's arrest. Those include a USB stick that he was

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<v Speaker 14>wearing as a necklace, a December fourth bus ticket from

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<v Speaker 14>Philadelphia to Pittsburgh, and a to do list that was

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<v Speaker 14>found folded up in his pocket. Israeli Prime Minister Benjamin

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<v Speaker 14>Dettan Yaho says Israel expects to move to the next

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<v Speaker 14>phase of the Gaza ceasefire plan soon. Detan Yahoo says

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<v Speaker 14>that he would discuss opportunities for peace with President Trump

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<v Speaker 14>when he meets him later this month. Det Yahoo also

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<v Speaker 14>voiced opposition to a Palestinian state.

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<v Speaker 5>The purpose of.

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<v Speaker 13>A Palestinian state is to destroy the one and only

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<v Speaker 13>Jewish date. They already had a state in Gaza, a

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<v Speaker 13>defactive state, and it was used to try to destroy

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<v Speaker 13>the one in only Jewish date.

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<v Speaker 14>The truth between Israel and Amas remains fragile, with both

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<v Speaker 14>sides accusing the other of violations. The Trump administration has

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<v Speaker 14>released a new calendar that changes the free entry days

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<v Speaker 14>for national parks. It removes Martin Luther King Junior Day

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<v Speaker 14>and June teenth, both federal holidays, and adding Flag Day,

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<v Speaker 14>which is not a federal holiday on June fourteenth that

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<v Speaker 14>just happens to be President Trump's birthday. Pastor activist and

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<v Speaker 14>author Jamal Bryant, everything that.

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<v Speaker 9>They did in the civil rights community is trying to

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<v Speaker 9>be erased and dismiss as if it never happened.

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<v Speaker 14>Pastor Jamal Bryant and other critics say no sitting president

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<v Speaker 14>has had their birthday declared as a free day in

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<v Speaker 14>the park. Global News twenty four hours a day and

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<v Speaker 14>whenever you want it with the Bloomber News. Now, I'm

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<v Speaker 14>Michael Barrn. This is Bloomberg Leaser.

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<v Speaker 6>Thanks Michael.

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<v Speaker 2>Time now for our Bloomberg Sports update, and for that

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

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<v Speaker 15>There were some big games in the NFL. The Packers

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<v Speaker 15>never trailed, but the Bears twenty eight to twenty one.

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<v Speaker 15>The Steelers held off the Ravens in Baltimore twenty seven

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<v Speaker 15>to twenty two. The Jadwars top the Colts thirty six

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<v Speaker 15>to nineteen. In all three cases, the winner now in

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<v Speaker 15>sole possession of first in their division. Last night, Euston

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<v Speaker 15>won at Kansas City twenty to ten. Looks said the

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<v Speaker 15>Chiefs are gonna miss the playoffs. Jeff Kent named for

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<v Speaker 15>induction of the Baseball Hall of Fame as the most

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<v Speaker 15>home runs ever for a second baseman, Notre Dame got

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<v Speaker 15>snubbed didn't make the college football playoff. That's your Bloomberg

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<v Speaker 15>Sports update.

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<v Speaker 5>Stay with us.

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<v Speaker 16>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,

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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 Altum.

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<v Speaker 6>This is Bloomberg Daybreak.

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<v Speaker 5>Good mone warning on Nathan Hager.

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<v Speaker 3>One of the biggest mergers in Hollywood history could be

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<v Speaker 3>facing some pushback.

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<v Speaker 5>In Washington, d C.

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<v Speaker 3>President Trump is raising doubts about Netflix co CEO Ted

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<v Speaker 3>Sarandos and his planned seventy two billion dollar takeover of

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<v Speaker 3>Warner Brothers Discovery.

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<v Speaker 4>He's got a lot of interesting things happening aside from

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<v Speaker 4>what you're talking about. But it is a big market share,

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<v Speaker 4>There's no question about it.

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<v Speaker 5>Could be a problem.

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<v Speaker 3>President Trump spoke ahead of the Kennedy Center Honors in

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<v Speaker 3>the Nation's capital. For more, we're joined by a Bloomberg

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<v Speaker 3>Market's reporter, Valerie Titel, and of course, Valerie, we are

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<v Speaker 3>very early days into this planned merger, but could we

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<v Speaker 3>be seeing this deal stopped in its tracks out of

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<v Speaker 3>the Nation's capital.

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<v Speaker 5>Good morning.

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<v Speaker 17>Well, well, look, if we take a look at the

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<v Speaker 17>market reaction in pre market, we are seeing Netflix and

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<v Speaker 17>Warner Brothers reverse some of Friday's moves. So there is

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<v Speaker 17>a bit of skepticism on this deal now that we

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<v Speaker 17>heard these comments from President Trump that the size of

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<v Speaker 17>their market share combined could be a problem. We've seen

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<v Speaker 17>also bets on the prediction marketplace polymarket, which did show

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<v Speaker 17>a sixty percent chance of the deal closing in twenty

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<v Speaker 17>twenty six, is now all the way down to twenty five.

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<v Speaker 17>So the market is showing some skepticism here that this

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<v Speaker 17>combined unit between Netflix and Warner Brothers could be something

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<v Speaker 17>that the regulators could declare as harmful to consumers. The

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<v Speaker 17>combined unit would have some four hundred and fifty million

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<v Speaker 17>users under one streaming giant, and it will face a

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<v Speaker 17>lengthy Justice Department review. We have heard from US lawmakers

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<v Speaker 17>on both parties, including Democratic Senator Elizabeth Warren already faulting

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<v Speaker 17>the transaction as harmful to the consumer base and the

0:11:37.480 --> 0:11:41.160
<v Speaker 17>European Union. Regulators are also likely to subject the Netflix

0:11:41.200 --> 0:11:43.000
<v Speaker 17>proposal to an intensive review.

0:11:43.080 --> 0:11:45.520
<v Speaker 5>But it does follow some interesting Bloomberg reporting.

0:11:45.679 --> 0:11:48.600
<v Speaker 17>That the co CEO of Netflix was at the White

0:11:48.640 --> 0:11:52.040
<v Speaker 17>House back in November met with President Trump for over

0:11:52.080 --> 0:11:55.280
<v Speaker 17>an hour to get Trump's blessing on the proposed deal,

0:11:55.360 --> 0:11:58.840
<v Speaker 17>and he did leave with the impression that Netflix wouldn't

0:11:58.840 --> 0:12:02.120
<v Speaker 17>face immediate oppoiceition from the White House. Now, the other

0:12:02.440 --> 0:12:05.200
<v Speaker 17>thing that could complimentate this is the other bidder for

0:12:05.320 --> 0:12:09.480
<v Speaker 17>Warner Brothers Discovery that was paramounts sky Dance could perhaps

0:12:09.600 --> 0:12:12.559
<v Speaker 17>do some lobbying efforts to try to disrupt the plan. Now,

0:12:12.600 --> 0:12:16.119
<v Speaker 17>Paramount Skuydance wanted to buy the whole company, and regulators

0:12:16.160 --> 0:12:20.000
<v Speaker 17>are more likely to approve of a Paramount Warner Brothers

0:12:20.040 --> 0:12:22.600
<v Speaker 17>a merger. So still a lot of drama in this

0:12:22.720 --> 0:12:24.600
<v Speaker 17>merger to play out, But it does seem like there

0:12:24.640 --> 0:12:26.800
<v Speaker 17>is a hint of skepticism now trading in the markets

0:12:26.800 --> 0:12:27.760
<v Speaker 17>about this deal closing.

0:12:27.920 --> 0:12:31.240
<v Speaker 3>Yeah, interesting to hear that Paramount Skuiddance could potentially be

0:12:31.320 --> 0:12:35.920
<v Speaker 3>brought back into play here given the CEO David Ellison,

0:12:35.960 --> 0:12:39.000
<v Speaker 3>his fairly close ties to President Trump as well.

0:12:39.040 --> 0:12:39.920
<v Speaker 5>I mean, how.

0:12:39.840 --> 0:12:43.760
<v Speaker 3>Unusual is it to see this kind of politicization of a.

0:12:45.320 --> 0:12:47.840
<v Speaker 5>Merger like this so early in the process.

0:12:48.120 --> 0:12:50.720
<v Speaker 17>Well, at least one thing we know is that Trump

0:12:50.840 --> 0:12:53.880
<v Speaker 17>has had this push of deregulation. He has a new

0:12:53.920 --> 0:12:56.920
<v Speaker 17>head in the FTC, and they do have a flavor

0:12:57.000 --> 0:13:00.520
<v Speaker 17>of allowing companies a more activity like this. This does

0:13:00.840 --> 0:13:04.079
<v Speaker 17>perhaps pose a test to the White House whether they

0:13:04.160 --> 0:13:08.640
<v Speaker 17>stand by that commitment to deregulation, whether they would let

0:13:08.679 --> 0:13:10.439
<v Speaker 17>a deal like this go through. But it is very

0:13:10.440 --> 0:13:13.160
<v Speaker 17>interesting to see the politics so wrapped up. But in

0:13:13.160 --> 0:13:16.000
<v Speaker 17>a merger this size, Nathan, you're going to have many

0:13:16.120 --> 0:13:19.120
<v Speaker 17>regulators involved. As I mentioned, the European Union could also

0:13:19.120 --> 0:13:21.520
<v Speaker 17>get involved in this discussion as well. So it goes

0:13:21.559 --> 0:13:24.120
<v Speaker 17>down to the size of the merger and the massive

0:13:24.200 --> 0:13:28.319
<v Speaker 17>company it would create, with over four hundred million users

0:13:28.600 --> 0:13:31.360
<v Speaker 17>on one streaming giant platform if Netflix were to take

0:13:31.400 --> 0:13:32.440
<v Speaker 17>Warner Brothers Discovery.

0:13:32.559 --> 0:13:34.959
<v Speaker 3>In our last minute, let's talk about the broader market here.

0:13:35.000 --> 0:13:36.959
<v Speaker 3>I think a lot of the focus this morning, probably

0:13:37.000 --> 0:13:38.520
<v Speaker 3>for the rest of this week, is going to be

0:13:38.600 --> 0:13:42.800
<v Speaker 3>on the Federal Reserve and the final decision of twenty

0:13:42.840 --> 0:13:43.719
<v Speaker 3>twenty five.

0:13:43.720 --> 0:13:46.640
<v Speaker 17>Final decision for twenty twenty five, and while the markets

0:13:46.679 --> 0:13:49.480
<v Speaker 17>are wildly predicting the FED will cut interest rates by

0:13:49.480 --> 0:13:51.800
<v Speaker 17>twenty five basis points, we could be in for a

0:13:51.920 --> 0:13:55.840
<v Speaker 17>whopping number of descents in the voting. We've heard from

0:13:55.920 --> 0:13:59.480
<v Speaker 17>a raft of more hawkish FMC officials saying they're not

0:13:59.480 --> 0:14:03.160
<v Speaker 17>comfortable with cutting rates. Five of them have actually expressed

0:14:03.200 --> 0:14:06.880
<v Speaker 17>concerns in the last month. If they all dissent at

0:14:06.920 --> 0:14:09.880
<v Speaker 17>something that we have not seen in FED in modern

0:14:09.960 --> 0:14:13.280
<v Speaker 17>history of the Federal Reserve, a five descent decision if

0:14:13.320 --> 0:14:15.160
<v Speaker 17>they go ahead and cut interest rates on Wednesday, So

0:14:15.200 --> 0:14:17.920
<v Speaker 17>a fractured FED is the focus, and then the focus

0:14:18.040 --> 0:14:20.400
<v Speaker 17>is on the week after that. The backlog of data

0:14:20.440 --> 0:14:23.600
<v Speaker 17>the November CPI in non farm payroll reporters still do

0:14:23.800 --> 0:14:24.640
<v Speaker 17>before Christmas.

0:14:26.520 --> 0:14:29.520
<v Speaker 16>This is Bloomberg day Break, your morning podcast on the

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<v Speaker 16>Hager and.

0:15:12.960 --> 0:15:13.880
<v Speaker 6>I'm Lisa Matteo.

0:15:14.080 --> 0:15:16.280
<v Speaker 2>Join us again tomorrow morning for all the news you

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