WEBVTT - Iran To Unlock $12 Billion; Alan Greenspan's Legacy

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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. Karen, we begin with

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<v Speaker 2>the latest on the Middle East.

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<v Speaker 1>The US has issued a sixty day license allowing Iran

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<v Speaker 1>to sell its own oil on the international market. This

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<v Speaker 1>gives Tehran an economic lifeline as both sides continue talks

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<v Speaker 1>on a permanent peace steal. We get the very latest

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<v Speaker 1>from Bloomberg Middle East correspondent to Birabu Omar.

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<v Speaker 3>What we know about this waiver is that essentially the

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<v Speaker 3>US Treasury has extended it to Iran until August twenty first,

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<v Speaker 3>that is the day where the sixty day period of

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<v Speaker 3>negotiations would have stopped, and so that would allow Iran

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<v Speaker 3>to sell oil exports, bringing back this much needed supply

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<v Speaker 3>to the market because of the shutdown industrait of her moves.

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<v Speaker 4>Our teams on the energy.

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<v Speaker 3>Side have tracked just how many oil barrels would come

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<v Speaker 3>out or have come out actually over the past week,

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<v Speaker 3>and that's about thirty million barrels.

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<v Speaker 4>And so we're still seeing a trickle of movement.

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<v Speaker 3>Definitely better situation than what it was at the waiver

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<v Speaker 3>essentially means that Iran can sell its oil even to

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<v Speaker 3>US refineries theoretically. But something to bear in mind again

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<v Speaker 3>is that the EU, for example, has its own sanctions

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<v Speaker 3>and so we don't know if they're going to be

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<v Speaker 3>buying this oil.

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<v Speaker 1>Bloomberg's of Birabo Omar says seven tankers indicated they were

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<v Speaker 1>in the strait of hormones this morning and checking oil

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<v Speaker 1>prices now, West Texas Intermediate is down seven tenths percent,

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<v Speaker 1>trading its seventy three dollars thirty five cents of barrel.

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<v Speaker 1>Brent is eight tenths percent lower at seventy seven dollars

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<v Speaker 1>twenty eight cents.

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<v Speaker 2>We now turn to the latest developments in British politics.

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<v Speaker 2>Nathan the UK could be sent for a quick transition

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<v Speaker 2>to a new premiership as rivals to the front runner

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<v Speaker 2>Andy Burnham stand aside. We go to London where Bloomberg's

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<v Speaker 2>un Potts he's the latest good morning you one Coaron Nathan.

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<v Speaker 5>The UK is set to get its seventh prime minister

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<v Speaker 5>in a decade. In fact, it's almost two hundred years

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<v Speaker 5>since ris and change its leader so frequently. As Labor

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<v Speaker 5>Party has a majority in Parliament, its leader becomes Prime Minister,

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<v Speaker 5>and after the former Mayor of Manchester, Andy Burnham's main

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<v Speaker 5>rival for the leadership dropped out, he could get the

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<v Speaker 5>job without a formal contest. If that happens, Number ten

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<v Speaker 5>Downing Street could have a new occupant as soon as

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<v Speaker 5>the middle of next month.

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<v Speaker 4>In London, I'm you in Port Sploomberg Radio. All right,

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<v Speaker 4>you and thank you. Let's turn to politics here in

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<v Speaker 4>this country.

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<v Speaker 1>Because it is primary election day in New York and Maryland,

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<v Speaker 1>as well as a runoff day in South Carolina and

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<v Speaker 1>New York, a number of congressional races could be a

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<v Speaker 1>test of Mayor Zorn Mumdani's political power. The mayor has

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<v Speaker 1>endorsed challengers to two Democratic incumbents, Dan Goldman and Adriano Spayad.

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<v Speaker 1>We spoke with Congressman Goldman about his race against former

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<v Speaker 1>New York City Comptroller Brad Lander.

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<v Speaker 6>Look, I think broadly, we generally agree on what the

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<v Speaker 6>problems are. Life is just way too expensive for the

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<v Speaker 6>vast majority of Americans, and we have to address the

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<v Speaker 6>dramatic escalation and wealth inequality and the difficulty that so

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<v Speaker 6>many people have in accessing opportunity in this country, and

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<v Speaker 6>the American Dream.

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<v Speaker 1>New York Congressman Dan Goldman appeared on Bloomberg's Balance of Power.

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<v Speaker 1>Mayor mum Donnie's also endorsed activist Daria Liza Avela Chevalier

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<v Speaker 1>against Congressman of Spayot Well.

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<v Speaker 2>There's also a crowded field Nathan to succeed retiring Congressman

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<v Speaker 2>Jerry Nadler in his Midtown Manhattan district.

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<v Speaker 4>It includes John F.

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<v Speaker 2>Kennedy's grandson Jack Schlosberg, and former never Trump republic Intern

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<v Speaker 2>Democrat George Conway. Mom Donnie has not given an endorsement

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<v Speaker 2>in that race, but in the interest of transparency, we

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<v Speaker 2>should note that Michael Bloomberg has endorsed Michael Lasher for Congress,

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<v Speaker 2>and Bloomberg is founder and majority owner of Bloomberg LP,

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<v Speaker 2>the parent company at Bloomberg Radio.

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<v Speaker 4>Karen, We're also keeping an eye on primary races. In Maryland.

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<v Speaker 1>Governor Wes Moore is seeking reelection to a second term.

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<v Speaker 1>He's facing a Democratic primary challenge from physician Eric Felber.

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<v Speaker 1>The Republican governor's race features nine candidates, including former state

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<v Speaker 1>Delegate Dan Cox, who lost to More in twenty twenty

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<v Speaker 1>two in the House. Twenty four candidates are vying for

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<v Speaker 1>retiring former Democratic Leader Steny Hoyer's seat. They include former

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<v Speaker 1>US Capitol Police officer Harry Dunn, who helped defend the

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<v Speaker 1>Capitol during the January sixth attack. And in the South

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<v Speaker 1>Carolina runoff, Lieutenant Governor Pamela Vett is facing state Attorney

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<v Speaker 1>General Alan Wilson again in the Republican governor's race. President

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<v Speaker 1>Trump endorsed a Vett in the primary, but last week

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<v Speaker 1>he said he'd be happy if either candidate wins.

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<v Speaker 2>Today, well, it's turned to Washington now, Nathan. President Trump

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<v Speaker 2>is putting attention on the Lincoln Memorial reflecting pool. Algae

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<v Speaker 2>has started to build back in after his sixteen million

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<v Speaker 2>dollar resurfacing of the landmark, and now the President says

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<v Speaker 2>he has evidence of vandalism at the site.

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<v Speaker 4>We have one hundred and.

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<v Speaker 7>We have a I think two hundred and ninety three

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<v Speaker 7>hundred foot slid right through it. Probably a box cutter

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<v Speaker 7>or a knife of some kind, or we had people

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<v Speaker 7>lifting up the basic some of the It's not a

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<v Speaker 7>lot of damage, but it will probably have to let

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<v Speaker 7>the water out and refix it.

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<v Speaker 2>The President spoke to reporters in the Oval office, but

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<v Speaker 2>he provided little evidence to support his claim. The Interior

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<v Speaker 2>Department says five people have been arrested for vandalism at

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<v Speaker 2>the pool and five others have received citations on truth

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<v Speaker 2>social Last night, President Trump said he's preparing lawsuits against

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<v Speaker 2>ABC News over its reporting on the damage to the

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<v Speaker 2>Reflecting Pool.

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<v Speaker 1>It's tart of markets now, Karen. We're watching a tech

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<v Speaker 1>led selloff around the world. Nesdak futures right now are

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<v Speaker 1>down about two and a half percent, and in Asia,

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<v Speaker 1>South Korea's Cospi index plunged ten percent. Mark Doubting is

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<v Speaker 1>chief investment officer at RBC Blue Bay.

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<v Speaker 8>If he's turned back a little bit, I think what

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<v Speaker 8>you would say is that some of the recent performance

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<v Speaker 8>in stacks has been highly speculative, fueled by a passion

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<v Speaker 8>from retail investors for short term gains looking at momentum.

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<v Speaker 8>This is the way the markets have been behaving on

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<v Speaker 8>offer eighting.

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<v Speaker 4>That's RBC Blue Bays Marked Doubting.

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<v Speaker 1>Their shares of s k Heiniz and Samsung Electronics each

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<v Speaker 1>plunged more than ten percent in Asia. Here in the US,

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<v Speaker 1>memory chip maker Micron Technology reports earnings tomorrow.

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<v Speaker 2>Nathan SpaceX shares they continue their recent slide. They're down

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<v Speaker 2>another three point eight percent in early trading. The stock

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<v Speaker 2>is coming off three straight losing sessions. They're raising a

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<v Speaker 2>total of six hundred billion dollars in market value. The

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<v Speaker 2>sell off comes as the Elon Musk lead firm gets

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<v Speaker 2>ready to sell investment grade bonds for the first time.

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<v Speaker 2>Robert Schiffman is a senior credit analyst for Bloomberg.

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<v Speaker 9>They're going to be spending a lot more over the

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<v Speaker 9>next few years than they make, probably in the neighborhood

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<v Speaker 9>of thirty to forty billion dollars of negative free cash

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<v Speaker 9>flow for the next few years. On top of that,

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<v Speaker 9>they have a twenty billion dollar term loan due next

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<v Speaker 9>September that are going to use the proceeds from this

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<v Speaker 9>bond deal to pay off. So they're just getting ahead

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<v Speaker 9>of the curve like everybody else, Like why are the

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<v Speaker 9>alphabets and amazons and metas raising so much just because

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<v Speaker 9>over the next few years are going to be spending

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<v Speaker 9>a lot more.

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<v Speaker 2>Bloomer's Robert Schiffman says SpaceX is seeking to raise at

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<v Speaker 2>least twenty billion dollars from the debt sale.

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<v Speaker 1>Finally, Karen tributes continue to pour in following the passing

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<v Speaker 1>of former Federal Reserve Chairman Alan Greenspan. Chuck Lieberman of

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<v Speaker 1>Advisor's Capital worked with green Span when he joined his

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<v Speaker 1>firm as an economic advisor.

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<v Speaker 10>He was always insightful. He did a great job of

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<v Speaker 10>explaining points if you ask him a question. He always

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<v Speaker 10>had charts to demonstrate to show the data backing up

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<v Speaker 10>his logic, and his logic was impeccable. He was insightful

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<v Speaker 10>really until the very end.

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<v Speaker 1>Chuck Lieberman of Advisor's Capital praised Greenspan's independence and communication

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<v Speaker 1>as FED Chair, as did former FED Governor Betsy Duke.

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<v Speaker 2>He was so famous for that sort of double speak

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<v Speaker 2>that nobody could understand, but he really pioneered FED communications

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<v Speaker 2>and the communications that were used to today.

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<v Speaker 4>In hearing from the committee after the meetings, it's former

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<v Speaker 4>FED Governor Betsy Duke.

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<v Speaker 11>Now.

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<v Speaker 1>Alan Greenspan's legacy was clouded by the two thousand and

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<v Speaker 1>eight zero nine global financial crisis that followed his time

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<v Speaker 1>as chair. Princeton professor Alan Blinder recalled how some felt

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<v Speaker 1>green Span missed the build up to the housing bubble

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<v Speaker 1>that preceded the crisis.

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<v Speaker 12>The markets would get some crazy ideas in their heads,

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<v Speaker 12>and more than once I went to green Span and

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<v Speaker 12>would say it would only take one statement from you

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<v Speaker 12>to get that crazy idea out of their heads. But

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<v Speaker 12>he didn't until late in his term when he was

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<v Speaker 12>starting to change.

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<v Speaker 1>It's Princeton professor Alan Blinder, and following the news of

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<v Speaker 1>Greenspan's death yesterday, colleagues described him as a driving force

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<v Speaker 1>for change of the FED and a guiding light for investors.

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<v Speaker 1>Alan Greenspan was one hundred years old.

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<v Speaker 2>Time now for look at some of their stories making

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<v Speaker 2>news in New York and around the world, and for

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<v Speaker 2>that were joined by Bloomberg's Michael Barr Michael, good Morning.

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<v Speaker 11>Good Morning Karen. In a rare act a bipartisanship, the

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<v Speaker 11>Senate passed the twenty first Century Road to Housing Act.

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<v Speaker 11>The measure will loose in regulations to encourage more home construction,

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<v Speaker 11>opened up funding to convert abandoned buildings into new housing,

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<v Speaker 11>and it also bans Wall Street investors from buying single

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<v Speaker 11>family homes so those homes can instead be sold to families.

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<v Speaker 11>On the Senate floor, Democratic Senator Chuck Schumer of New

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<v Speaker 11>York said for too many Americans, home ownership is simply unaffordable.

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<v Speaker 13>The median home buyer in America is forty years old.

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<v Speaker 13>The down payment is excruciating to many and puts housing

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<v Speaker 13>out of reach for them.

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<v Speaker 11>The House is expected to vote on the measure today.

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<v Speaker 11>There is where the Acting Director of National Intelligence, Bill Poulty,

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<v Speaker 11>has begun firing people at the agency. The President earlier

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<v Speaker 11>said he had asked Poulty to execute the immediate downsizing

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<v Speaker 11>of the office. In California. A state of emergency in

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<v Speaker 11>the Boyle Heights neighborhood of Los Angeles, where a warehouse

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<v Speaker 11>fire has been burning since Wednesdays, prompting air quality alerts.

0:09:55.480 --> 0:09:58.439
<v Speaker 11>Building owners say the fire may have started while contractors

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<v Speaker 11>were testing solar panels on the Los Angeles Fire Chief

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<v Speaker 11>him Me Moore.

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<v Speaker 14>If you're sensitive to smoke or have any respiratory concerns,

0:10:06.920 --> 0:10:11.439
<v Speaker 14>please stay indoors, close your windows, set your air conditioning

0:10:11.600 --> 0:10:15.839
<v Speaker 14>units to recirculate rather than draw from outside air fire chief.

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<v Speaker 11>More Global news twenty four hours a day and whenever

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<v Speaker 11>you want it with Bloomberg News Now. I'm Michael Lamarn.

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<v Speaker 11>This is Bloomberg.

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<v Speaker 10>Karen.

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<v Speaker 4>Well, thanks Michael.

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<v Speaker 2>All time now for our Bloomberg Sports update, and for

0:10:26.360 --> 0:10:28.319
<v Speaker 2>that we bring in John stash Hour.

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<v Speaker 15>Thanks darn a blockbuster NBA trade ahead of tonight's draft.

0:10:32.240 --> 0:10:35.760
<v Speaker 15>Giannis unto the Compo thirteen years in Milwaukee. A two

0:10:35.760 --> 0:10:38.439
<v Speaker 15>time MVP, he led the Bunks to the NBA championship

0:10:38.440 --> 0:10:41.440
<v Speaker 15>in twenty twenty one. Traded to the Miami Heat for

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<v Speaker 15>four players and three first round draft picks. Julius Randall

0:10:45.160 --> 0:10:49.199
<v Speaker 15>traded by Minnesota to Brooklyn, also from the NBA. Dusty

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<v Speaker 15>Maynade the new coach of the Dallas Mavericks. He just

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<v Speaker 15>won the national championship at Michigan College World Series in Omaha, Oklahoma,

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<v Speaker 15>wins the title beating North Carolina. That's a Bloomberg Sports

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<v Speaker 15>updated with US.

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<v Speaker 2>More from Bloomberg Daybreak coming up after this.

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<v Speaker 5>Coast to coast on Bloomberg Radio, nationwide on Serious Exam

0:11:12.120 --> 0:11:14.960
<v Speaker 5>and around the world on Bloomberg dot Com and the

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<v Speaker 5>Bloomberg Business app.

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<v Speaker 4>This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.

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<v Speaker 1>As talks continue between the US and Iran, Tehran is

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<v Speaker 1>getting an economic lifeline, a sixty day license from the

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<v Speaker 1>US to sell its oil. Vice President jd Vance says

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<v Speaker 1>the US is not giving up too much, whether good.

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<v Speaker 4>Faith or bad faith. You can't trust anybody's words. You

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<v Speaker 4>have to trust what they actually do.

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<v Speaker 1>That was Vice President van speaking on his way back

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<v Speaker 1>from the talks in Switzerland, and we're joined now by

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<v Speaker 1>Bloomberg Jerusalem reporter Dan Williams. I think i'd heard of

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<v Speaker 1>Vice President in Vance and other administration officials, Dan say

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<v Speaker 1>that Iran's financial benefits through this process would be performance based.

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<v Speaker 4>Does this sixty day waiver rise to that level? Good morning?

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<v Speaker 16>Time will tell, Good morning, Nathan. There's already a divergence

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<v Speaker 16>of account from Iran and from the United States, now

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<v Speaker 16>that they've gotten the photo op meeting of principles at

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<v Speaker 16>that summit in Lucerne out of the way and left

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<v Speaker 16>the stage for more, should we say, mundane technical talks.

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<v Speaker 16>Either side is talking up, but often in different directions.

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<v Speaker 16>The US the Trump administration saying that unfrozen funds will

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<v Speaker 16>be used for humanitarian purposes, perhaps even to buy soy

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<v Speaker 16>products from the United States, but the spokesman for the

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<v Speaker 16>Foreign Ministry in Tehran saying there would not be a

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<v Speaker 16>limitation on how Iran uses those funds. That of course

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<v Speaker 16>will stir concern in the US in the West, and

0:12:37.679 --> 0:12:40.520
<v Speaker 16>indeed in the region that some perhaps all of that

0:12:40.640 --> 0:12:45.000
<v Speaker 16>money could go toward rebuilding Iran's military capacity, perhaps the

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<v Speaker 16>capacities of Iranian allies like the Hesbala militia in Lebanon.

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<v Speaker 16>Perhaps not coincidentally, the top US diplomat Marco Rubio is

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<v Speaker 16>also beginning a visit to the Gulf. Perhaps he's heading

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<v Speaker 16>out there to try and reassure sure golf Arab states

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<v Speaker 16>aligned with the United States that the Trump administration will

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<v Speaker 16>do what it can to keep this deal on track

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<v Speaker 16>during that critical sixty day review period.

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<v Speaker 1>How are these talks being received in Israel right now? Dan,

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<v Speaker 1>Of course, Israel remains a wild card with the fight

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<v Speaker 1>against Hesbola and Lebanon.

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<v Speaker 16>Yes, there are actually those who argue that the fact

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<v Speaker 16>it's a wildcard, the fact that from the outset it

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<v Speaker 16>was outside these negotiations on the MoU, it's not a signatory,

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<v Speaker 16>and apparently it wasn't even consulted much of the time

0:13:30.760 --> 0:13:33.640
<v Speaker 16>when it was being drafted. There is a viewpoint now

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<v Speaker 16>that perhaps this strengthens Israel's hand paradoxically, because Israel can

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<v Speaker 16>claim frankly, naturally and legitimately that it's acting alonely Uwoni

0:13:42.360 --> 0:13:45.520
<v Speaker 16>laterally because it wasn't consulted and it certainly didn't sign

0:13:45.520 --> 0:13:48.079
<v Speaker 16>on the dotted line. These Raelis were shocked when this

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<v Speaker 16>surface emerged about a week ago that this deal was

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<v Speaker 16>in place. It appears they've now resigned themselves to letting

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<v Speaker 16>the Americans take the lead. Trump, despite a dipping of

0:13:58.559 --> 0:14:02.040
<v Speaker 16>his approval ratings in Israel as a foreign leader, nonetheless

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<v Speaker 16>is one of the friendliest presidents the Israelis have ever

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<v Speaker 16>seen in the White House. They won't be quick to

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<v Speaker 16>turn their back on him. At the same time, they

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<v Speaker 16>have a very immediate focus on Lebanon, something you alluded

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<v Speaker 16>to earlier in our conversation, where they want to make

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<v Speaker 16>sure that their freedom of operation against Hesbela is not

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<v Speaker 16>hindered by whatever emerges from this US Iranian deal. The

0:14:23.640 --> 0:14:27.000
<v Speaker 16>Iranians want to preserve Hesbela, They want to force Israel

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<v Speaker 16>out of Lebanon, and these Raelis are saying no, that's

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<v Speaker 16>a red line for them.

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<v Speaker 6>For now.

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<v Speaker 16>The Americans have been pressing Israel to hold far as

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<v Speaker 16>much as possible, perhaps to review the rules of engagement

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<v Speaker 16>in Lebanon to prevent needless loss of civilian life, needless

0:14:43.240 --> 0:14:46.240
<v Speaker 16>damage there. But the Americans seem to be content for

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<v Speaker 16>now with not insisting on an Israeli withdrawal from what

0:14:49.480 --> 0:14:52.520
<v Speaker 16>is effectively five percent of Lebanese territory.

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<v Speaker 2>This is Bloombery Daybreak, your morning podcast on the stories

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<v Speaker 4>I'm Karen Moscow and I'm Nathan Hager.

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<v Speaker 1>Join us again tomorrow morning for all the news you

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<v Speaker 1>need to start your day right here on Bloomberg Day

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<v Speaker 1>ray