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Speaker 1: Live from the Bloomberg Interactive Burger Studios. This is Bloomberg

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Speaker 1: Daybreak for Tuesday, February seven. Coming up today, Wall Street

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Speaker 1: races for key remarks from FED chair J. Powell. PP

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Speaker 1: becomes the latest oil giant to post record profits. President

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Speaker 1: Biden gets set to deliver his State of the Union tonight,

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Speaker 1: and the US begins to recover purse from the suspected

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Speaker 1: Chinese spy balloon. I'm a Mean Morris. A person of

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Speaker 1: interest is in custody in connection with the shooting of

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Speaker 1: an off duty n y p D officer, and the

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Speaker 1: city is ending one of its workplace vaccination rules. I'm

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Speaker 1: John stash Allen. Sports the Nets now without Tyrie Irving

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Speaker 1: lost it home to the Clippers. Victories for the Rangers,

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Speaker 1: Devils in Islanders. That's All's trading ahead on Bloomberg day

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Speaker 1: Break on Bloomberg eleven three on New York, Bloomberg one,

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Speaker 1: Washington d C, Bloomberg one oh six one, Boston, Bloomberg

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Speaker 1: nine sixties and Francisco Sirius Exam one nine team, and

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Speaker 1: around the world on Bloomberg Radio dot Com and via

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Speaker 1: the Bloomberg Business add Good morning. I'm Nathan Hagar and

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Speaker 1: I'm kmerin Moscow. Here are the stories we're following today.

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Speaker 1: The direction of markets today could take cues from the Fed.

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Speaker 1: Friday's big jobs report appears to have changed views on

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Speaker 1: what the Central Bank will do this year, and today

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Speaker 1: Chair J. Powell weighs in taking questions at the Economic

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Speaker 1: Club of Washington. Bloomberg's Michael McKee will be there, and

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Speaker 1: as a preview going into Friday's jobs report, the narrative

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Speaker 1: was the Fed chair hadn't pushed back hard enough on

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Speaker 1: markets pricing rate cuts Later this year, the payroll report

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Speaker 1: may have done that for him. If job growth is

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Speaker 1: strong and hours worked our rising, that's a lot more

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Speaker 1: money in consumers pockets available to spend, and at least

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Speaker 1: according to the feds Phillips curve model, that means inflation

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Speaker 1: will be stickier. Paul gets another chance to make that

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Speaker 1: point when he sits down with David Rubinstein, host of

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Speaker 1: Bloomberg TV's Peer to Peer and David Rubinstein shows at

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Speaker 1: the Washington Economic up expecting to say the Fed will

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Speaker 1: stay the course, raising rates one or two more times

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Speaker 1: and holding them throughout the year. Michael McKee, Bloomberg Daybreak

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Speaker 1: All right, Mike, Thank you, and stay with us for

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Speaker 1: complete coverage of Howell's comments. We will bring them to

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Speaker 1: you live on Bloomberg Radio and television around twelve thirty

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Speaker 1: pm Eastern time. Nathan Markets are holding steady ahead of

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Speaker 1: those remarks from Powell. Lori Calvacina ahead of US. Equity

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Speaker 1: strategy at RBC Capital Markets thinks the worst maybe behind US.

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Speaker 1: I would be surprised at this point in time if

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Speaker 1: we were to retest or really even break below those

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Speaker 1: October lows, because I think the market is still got

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Speaker 1: enough evidence that the soft landing thesis is intact for now.

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Speaker 1: I mean we are, I think coming up on the

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Speaker 1: point when we'll have most of the earnings downgrades, and

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Speaker 1: traditionally that's a clearing event for markets. So I think

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Speaker 1: there's was to the downside, but I think the bears

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Speaker 1: have kind of overstayed their welcome and over articulated their case.

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Speaker 1: Laurie Calvacina of RBC Capital Markets cc sn P five hundred,

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Speaker 1: ending the year around on the earnings front. This morning,

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Speaker 1: Karen's shares of BP are up three and a half percent.

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Speaker 1: The UK companies joined other energy giants in posting a

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Speaker 1: record profit for two now. BP CEO Bernard Looney tells

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Speaker 1: us he's looking to reinvest that capital. We're actually announcing

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Speaker 1: that we're going to increase investment in the energy transition

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Speaker 1: by about eight billion dollars this decade, and at the

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Speaker 1: same time, we're going to increase investment in today's energy system,

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Speaker 1: which is predominantly all in gas, by about eight billion

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Speaker 1: dollars as well. CEO Bernard Looney says VP is boosting

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Speaker 1: its dividend and will buy back an extra two point

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Speaker 1: seven billion dollars in shares. Shares a b MP perry

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Speaker 1: bar up almost two percent. The French bank says it

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Speaker 1: plans to buy back almost five and a half billion

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Speaker 1: dollars in stock. The move comes after BMP posted a

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Speaker 1: quarter that beat many Wall Street peers. All right, let's

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Speaker 1: turn now to the major political event of the night,

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Speaker 1: Karen President Biden's State of the Union address. The president's

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Speaker 1: speech is expected to call for a new minimum tax

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Speaker 1: on billionaires and a stock tax on stock buy backs.

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Speaker 1: Wendy show Are, director of Brown University's Tobman Center for

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Speaker 1: American Politics and Policy, says the economy will likely be

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Speaker 1: a key theme tonight. You have to spend a lot

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Speaker 1: of time talking about was working well in the economy

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Speaker 1: and also counteracting a theme that's been ever present in

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Speaker 1: mainstream and social media for more than six months eight months,

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Speaker 1: that there will be recession. There is a recession, and

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Speaker 1: the layoffs in the tech industry, which over expanded, are

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Speaker 1: the big headlines. But are there layoffs in other major

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Speaker 1: industries that affect more Americans. That's the thing that Biden

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Speaker 1: has a racial about. Brown University political scientist Wendy Schiller

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Speaker 1: and listen for live coverage of Tonight's State of the

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Speaker 1: Union on a special edition of Bloomberg's Balance of Power.

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Speaker 1: It starts tonight at eight thirty pm Wall Street Time

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Speaker 1: on Bloomberg Radio and Television. Well ahead of Tonight's speech,

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Speaker 1: Nathan how Speaker Kevin McCarthy has delivered one of his

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Speaker 1: own with a focus on the debt ceiling. President Biden

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Speaker 1: wants Congress to raise the debt limit yet again without

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Speaker 1: a single sensible change to how government spends her hard

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Speaker 1: earned money. None does that sound responsible to you? Speaker

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Speaker 1: McCarthy says he wants to negotiate with the President on

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Speaker 1: a responsible dead limit increase with no lines in the

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Speaker 1: sand However, the speech he said, However, after this speech,

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Speaker 1: he said he will draw the line on one issue.

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Speaker 1: He's ruling out tax increases. Turning to geopolitics and national security,

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Speaker 1: the White House says it's looking forward to getting whatever

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Speaker 1: data are recovered from the Chinese balloon down in the Atlantic.

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Speaker 1: Bloomberg said, Baxter has the story. It says recovery efforts

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Speaker 1: are in full swing. Spokesman John Kirby says they aren't

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Speaker 1: worried about any lost intelligence to China at this point,

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Speaker 1: and says this is not their first dance with a balloon.

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Speaker 1: Some dating back to the Trump administration, at least on

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Speaker 1: three occasions uh survanance balloons by the PRC transited uh

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Speaker 1: US air space. I will say that for me, the

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Speaker 1: indication that we have that that was for brief periods

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Speaker 1: of time. Kirby says, I hope to find out how

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Speaker 1: high up the China leadership food chain decisions were made

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Speaker 1: aid in San Francisco. I'm at Baxter Bloomberg Daybreak. Thanks.

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Speaker 1: There's plenty of the U S officials can learn from

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Speaker 1: what's left of the balloon. That's according to Mark Esper,

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Speaker 1: served as Secretary of Defense under President Trump, is the

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Speaker 1: instrumentation made of US parts or a lot of parts.

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Speaker 1: It would tell us where they're sourcing their the engineering

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Speaker 1: stuff for for the system. So we can learn a

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Speaker 1: whole lot from from this package once we get it

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Speaker 1: ashore and able to kind of pick through it in

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Speaker 1: close detail. Former Defense Secretary Mark espersa as President Biden

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Speaker 1: made the right call shooting it down over water, but

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Speaker 1: he also says the President could have done it sooner

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Speaker 1: over Alaska. Esper spoke with our Washington correspondent Joe Matthew

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Speaker 1: on Bloomberg Sound On. Catch the show weekdays at five

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Speaker 1: pm Eastern on Bloomberg Radio or anytime wherever you get

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Speaker 1: your podcasts, and this is Bloomberg. It is thirty degrees

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Speaker 1: in Central Park. We'll have sunshine with clouds building this afternoon,

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Speaker 1: going up to near forty five degrees, some showers possible

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Speaker 1: tonight as we head down to around forty. Time Now

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Speaker 1: to take a look at some of the other stories

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Speaker 1: making news in New York and around the world with

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Speaker 1: Bloomberg's Amy Morris, Good morning, Amy, Good morning. Nathan. Rescue

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Speaker 1: teams from overseas began deploying in Turkey after a pair

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Speaker 1: of powerful earthquakes killed at least four thousand people in

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Speaker 1: both Turkey and Syria. White House Press Secretary Koine Jean

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Speaker 1: Pierre says the Administration has been working with their counterparts

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Speaker 1: in Turkey to provide assistance. The President authorized an immediate

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Speaker 1: US response. In addition to the US personnel currently on

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Speaker 1: the ground, we are in the process of deploying additional

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Speaker 1: teams to support Turkish search and rescue efforts. Turkey's President

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Speaker 1: her Dewan says Turkey is facing the strongest disaster in

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Speaker 1: a century and the country has declared seven days of mourning.

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Speaker 1: A person of interest is in custody for the alleged

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Speaker 1: shooting of an off duty NYPD officer Saturday night in Brooklyn.

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Speaker 1: Channel four reports police tracked down a thirty eight year

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Speaker 1: old man in Rockland County. That shooting happened when the

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Speaker 1: twenty six year old NYPT officer from Deer Park arranged

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Speaker 1: by a car off Facebook marketplace, but when he arrived,

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Speaker 1: the person he was meeting open fire. The officer was

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Speaker 1: shot in the head remains in grave condition. New York

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Speaker 1: City is ending one of its last workplace vaccination mandates.

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Speaker 1: Mayor Eric Adams says city workers will no longer be

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Speaker 1: required to get vaccinated. Adam says the mandate, which led

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Speaker 1: to the firing of hundreds of city workers who declined

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Speaker 1: to get the shots, will end on Friday. Adam says

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Speaker 1: more of city employees and more than eighty percent of

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Speaker 1: city residents have gotten their initial vaccine series. The city

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Speaker 1: ended its vaccine requirement for employees of private businesses in November. Two.

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Speaker 1: Masks are now optional in most public places, including subways

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Speaker 1: and buses. There's pushback against Mayor adams mental health plan.

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Speaker 1: During yesterday's hearing, Councilman Charles Barron said he feared it

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Speaker 1: would lead to more physical altercations between the police and

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Speaker 1: the Mentally illness is a dangerous proposition that you're presenting him.

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Speaker 1: If we don't do something about getting pair intervention. More

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Speaker 1: than you, I'm fearful that there'll be more death. Yesterday's

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Speaker 1: hearing focused on the plan implement it at a few

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Speaker 1: months ago, ordering first responders to take anyone with serious

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Speaker 1: mental issues off the streets into the hospital even if

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Speaker 1: the patient refuses. A former staffer who worked for em

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Speaker 1: battled New York Congressman George Santos has resigned. Mario Niccolodo

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Speaker 1: tells ABC why he left his job as a Queen's

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Speaker 1: District Office staff members. The allegations and the documents came

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Speaker 1: out that it did not vote well for the congressman.

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Speaker 1: Obviously I had to take a step away. That's just

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Speaker 1: a decision again. I made for my family, for myself

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Speaker 1: and for my uh you know, my community and my friends.

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Speaker 1: Maryo Niccolodo says seventy residents in Santos District wanted to resign,

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Speaker 1: which he says is unprecedented and sad. Global News powered

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Speaker 1: by more than dred journalists and analysts and more than

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Speaker 1: one hundred twenty countries. I'm Amy Morris. This is Bloomberg, Nathan.

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Speaker 1: Thanks Amy, ex time for the Bloomberg Sports update brought

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Speaker 1: to you. If I try stayed out of Good Morning,

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Speaker 1: Johns Tesshower, you morning to Nathan. The Nets will miss

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Speaker 1: Carrie Irvans talent on the court, they will not miss

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Speaker 1: the drama he provided off of it. The day after

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Speaker 1: has trade to Dallas Nets post to the l A Clippers.

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Speaker 1: The new net spencer, Dinwittie and Dorry and Phinney Smith

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Speaker 1: were not yet with the team. Cam Thomas played He

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Speaker 1: scored forty four points last Saturday, and he scored forty

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Speaker 1: seven last night, but the Clippers won one sixteen, So

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Speaker 1: good trip to New York for them, with wins over

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Speaker 1: the Knicks and Nets Knicks plate tonight in Orlando. Also

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Speaker 1: from the NBA, the sale of the Phoenix Suns. The

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Speaker 1: real estate Magnet mattish be A approved unanimously hockey back

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Speaker 1: to the All Star Break Rangers and Flames. A couple

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Speaker 1: of goals for Philip Hill and then two by maker's

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Speaker 1: advantage at four four in overtime. Kelly Shoot sports Net

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Speaker 1: in Canada the call Alexey Law front year game winner.

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Speaker 1: Just as the Rangers were winning five four and overtime

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Speaker 1: at the Garden, the Devils won five four in ot

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Speaker 1: and Newark beating Vancouver. Jack used two more goals for

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Speaker 1: New Jersey. He's got thirty five on the year Island.

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Speaker 1: There's one to one at Philadelphia College Hoops, Duke was

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Speaker 1: coming off the big one over North Carolina but got

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Speaker 1: blown out. At Miami. Kansas beat Texas the battle of

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Speaker 1: top ten teams. They finished the weather delayed golf at

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Speaker 1: Pebble Beach. Forty two year old Justin Rose had the lead,

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Speaker 1: lost it, then came back got his first tournament, winning

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Speaker 1: four years. Tom Brady said he won't be a Fox

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Speaker 1: Sports announcer next season. He'll start the ten year, three

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Speaker 1: hundred and seventy five million dollar gig in twenty four.

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Speaker 1: John stash are Bluebrook Sports Live from coast to coast,

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Speaker 1: from New York to San Francisco, Boston to Washington, d C.

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Speaker 1: Nationwide on Sirius xamp, the Bloomberg Business app, and Bloomberg

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Speaker 1: dot Com. This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.

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Speaker 1: On a day when two major speeches are in focus

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Speaker 1: for markets. FED Chair Jerome Powell speaks in Washington this afternoon,

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Speaker 1: and then tonight President Biden delivers his second State of

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Speaker 1: the Union address. The message he intends to send inflation

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Speaker 1: is trending lower and jobs are on the rise. Top

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Speaker 1: White House Economic advisor Brian Deese is hammering that message home,

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Speaker 1: even as we've seen real progress and inflation coming down

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Speaker 1: over the last six months. In particular, we have more

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Speaker 1: work to do to bring prices down on lower costs

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Speaker 1: and create some breathing room, as he says, for American families.

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Speaker 1: National Economic Council director Brian Deese and this morning where

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Speaker 1: you're joined by Terry Haynes, the founder of Pangia Policy. Terry,

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Speaker 1: Good morning. It seems as though when you look at

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Speaker 1: the polls, the president has some work to do as

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Speaker 1: well on bringing that message to Americans that the economy

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Speaker 1: is working. Why do you think it hasn't been delivered

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Speaker 1: in the way that the president might like up to

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Speaker 1: this point. Good morning, Good morning, Nathan. And yeah, it's remarkable,

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Speaker 1: isn't it. Uh. You know, one of the ways that

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Speaker 1: the President's been talking about this speech is the opportunity

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Speaker 1: to make our case quote unquote, And usually making your

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Speaker 1: case comes before enacting Paul season instead of afterwards. Uh. Yeah,

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Speaker 1: they don't get a lot of credit and uh and

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Speaker 1: then they get a and for the good things, they

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Speaker 1: get a lot of credit for the angst And to

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Speaker 1: some extent, I think that's the lot of presidents everywhere.

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Speaker 1: But in part it's because Biden has not really been

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Speaker 1: at the forefront of pushing individual policies or or or

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Speaker 1: getting them put together through negotiations and uh, and really

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Speaker 1: has been the forefront of kind of presenting them in

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Speaker 1: a unified way as things that he's doing to make

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Speaker 1: life better. Do you expect that to change as we

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Speaker 1: had through the second half of the president's term at

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Speaker 1: a time when you could presumably be focusing on a

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Speaker 1: re election campaign. Well, I think he's already starting to

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Speaker 1: do that. Yeah. You know, they clearly want to be

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Speaker 1: able to to take credit for what they can take

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Speaker 1: credit for, and you know that's as old as the presidency. Uh.

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Speaker 1: But so they will start making their case and already

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Speaker 1: have as you know, more work to be done. But

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Speaker 1: we've done all these things so far. Even though what

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Speaker 1: they've done is you know, really uh put the FED

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Speaker 1: into place and have given the FED the responsibility for

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Speaker 1: attacking inflation, uh and uh and putting together this inflation

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Speaker 1: reduction actors really doesn't do much. Um. And you know,

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Speaker 1: the signals from the speech so far really are that

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Speaker 1: he's going to focus on proposing things that are red

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Speaker 1: meat for the base, like stock buy backs and the

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Speaker 1: like that won't get enacted, as opposed to things that

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Speaker 1: might be inactable. So uh, you know, net net, you're

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Speaker 1: not gonna see much more in the in terms of

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Speaker 1: uh push from the Biden administration on things that will

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Speaker 1: actually mitigate inflation and make the life better for average Americans.

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Speaker 1: And ahead of the speech we heard from how Speaker

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Speaker 1: Kevin McCarthy to putting the debt ceiling back in focus.

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Speaker 1: How much is the ongoing and looming fight over the

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Speaker 1: nation's debt limit overshadowing tonight's address. Well, ye know, there's

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Speaker 1: a lot of things overshadowing tonight's address. The Chinese balloon

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Speaker 1: for one, of course, and that because that brings up

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Speaker 1: all kinds of issues and problems relating to the national

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Speaker 1: security and national defense. Uh. You know, my view of

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Speaker 1: this has been that where the debt ceiling resolution finally

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Speaker 1: comes from in the summertime is probably from centrists, uh,

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Speaker 1: to boil it down. You're looking much more at a

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Speaker 1: kind of Senate centrist House centrist Joe Manchin ish kind

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Speaker 1: of play, uh than you are by having Biden and

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Speaker 1: McCarthy to actually resolve things. And I think that's ultimately

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Speaker 1: where this goes. UH done nothing that either President Biden

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Speaker 1: or Speaker McCarthy says this week UH is going to

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Speaker 1: move the needle on debt ceiling because both of them

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Speaker 1: think there's political advantage and stringing this thing out as

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Speaker 1: long as possible. Frankly so we're gonna get some brinksmanship.

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Speaker 1: That is finally in the summer time, I think in

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Speaker 1: the royal markets a little bit. In our last minute here, Terry,

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Speaker 1: given all the attention on the Chinese balloon this week,

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Speaker 1: how much do you expect the President to take a

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Speaker 1: tougher line on China in this address, given all the

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Speaker 1: moves that he's made up to now in the economic

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Speaker 1: front against China. I think what you'll hear from the

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Speaker 1: President is kind of a recitation of all the things

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Speaker 1: that have happened so far, both from a national security

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Speaker 1: perspective and from an economic perspective, chips manufacturing, reshoring, and

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Speaker 1: all those sorts of things. But you know, the administration,

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Speaker 1: but more importantly, I think the defense establishment, UH have

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Speaker 1: a lot of questions to answer what we've Uh listeners

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Speaker 1: shouldn't miss that what is going on with the balloon

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Speaker 1: now isn't so much a you know, Biden versus Trump

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Speaker 1: what about is and but what it is has to

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Speaker 1: do with whether the defense establishment ever identified these things

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Speaker 1: back in the day and what they're doing about the now.

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Speaker 1: This is Bloomberg Daybreak today, your morning brief on the

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Speaker 1: stories making news from Wall Street to Washington and beyond.

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Speaker 1: and on Bloomberg dot com. I'm Nathan Hager and I'm

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Speaker 1: Karen Moscow. Join us again tomorrow morning for all the

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