WEBVTT - Marines Deployed To LA, US-China Talks Continue, Apple’s Big Revamp

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>This is the Blueberg Day BAQ podcast, available every morning

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<v Speaker 2>on Apple, Spotify or wherever you listen. It's Tuesday, the

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<v Speaker 2>tenth of June in London.

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<v Speaker 3>I'm Caroline Hepke and I'm Stephen Carroll. Coming up today.

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<v Speaker 3>US President Donald Trump deploys the Marines to Los Angeles

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<v Speaker 3>in response to anti deportation protests as Democrats accuse him

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<v Speaker 3>of inflaming tensions.

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<v Speaker 2>Europe's IPO drought, leave Stock Exchange is battling for listings

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<v Speaker 2>in an increasingly shallow pool.

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<v Speaker 3>Plus focusing on core changes, Apple unveils the most sweeping

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<v Speaker 3>software redesign in its history, as its troubled AI efforts

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<v Speaker 3>take a back seat.

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<v Speaker 4>Let's start with the roundup of our top stories.

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<v Speaker 3>We begin with the unrest in Los Angeles. The Trump

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<v Speaker 3>admitter station says it is deploying seven hundred Marines to

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<v Speaker 3>the city as political tensions with Democrats grow. The White

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<v Speaker 3>House says conditions in La or spiral and that federal

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<v Speaker 3>forces are needed to support immigration agents and restore order.

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<v Speaker 3>President Donald Trump and California's Governor Gavin Newsom have classed

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<v Speaker 3>repeatedly over the response to the unrest, with the States

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<v Speaker 3>suing the Trump administration for mobilizing National Guard troops in

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<v Speaker 3>the city. Here's Los Angeles Democratic Mayor Karen Bass.

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<v Speaker 5>They're guarding the federal building here in downtown, and they're

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<v Speaker 5>guarding the Federal building in Westwood. That's what they're doing,

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<v Speaker 5>So they need marines on top of it. I don't

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<v Speaker 5>understand that. That's why I feel like we are part

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<v Speaker 5>of an experiment that we did not ask to be

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<v Speaker 5>a part of.

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<v Speaker 3>Mayor Karen Bass, speaking there as the United Nations on

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<v Speaker 3>Monday warned against a further militarization of the situation in

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<v Speaker 3>la On Monday, largely peaceful daytime protests morphed into a

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<v Speaker 3>fourth day of scattered clashes with police. The protests, which

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<v Speaker 3>have been largely limited to a few small parts of

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<v Speaker 3>the city, were sparked by a rising number of raids

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<v Speaker 3>by immigration agents, which local officials argue have spread fear

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<v Speaker 3>in immigrant communities.

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<v Speaker 2>Now to the trade talks I mentioned US China trade

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<v Speaker 2>talks will continue for a second day in London as

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<v Speaker 2>both sides seek to ease tensions over rare earth supplies

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<v Speaker 2>and tech exports. Blueberk understands that the US is offering

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<v Speaker 2>to ease some tech export controls in exchange for rare

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<v Speaker 2>earth shipments from China, which produces seventy percent of global supplies.

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<v Speaker 2>US Treasury Sectary Scott best sent and Commo Sexuy Howard

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<v Speaker 2>Lutnik have been leading the American delegation, with Lutnik calling

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<v Speaker 2>the talks after the first day fruitful, a sentiment echoed

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<v Speaker 2>by President Trump.

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<v Speaker 5>We are doing well with China.

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<v Speaker 6>China's not easy. I think we're doing very well. They're

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<v Speaker 6>over there now. I'm only getting good reports.

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<v Speaker 4>So that was President Trump.

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<v Speaker 2>Although optimistic about the talks, President Trump gave no clear

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<v Speaker 2>answer on lifting export restrictions, saying we'll see when he

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<v Speaker 2>was asked.

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<v Speaker 3>Europe stock exchanges are fighting fiercely to win the few

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<v Speaker 3>IPOs left looming across the continent. Data compiled by Bloomberg

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<v Speaker 3>shows Europe has made up just eight percent of global

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<v Speaker 3>issuance so far this year. That's against the yearly average

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<v Speaker 3>of sixteen percent or more for the last decade.

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<v Speaker 6>James Wilcock has more.

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<v Speaker 7>You may not have heard of Vismer or they're sure

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<v Speaker 7>that the stock exchange in Stockholm, London, Zurich, and Amsterdam

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<v Speaker 7>have one's a software company and the other makes alarms,

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<v Speaker 7>but both are expected to list at valuations potentially worth

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<v Speaker 7>more than twenty billion euros. Europe's capital markets are trying

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<v Speaker 7>their best to charm these potential public companies after being

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<v Speaker 7>starved of new listings. And for the exchanges you miss out,

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<v Speaker 7>alarm bells will be ringing in London, James Wilcock, Bloomberg Radio.

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<v Speaker 4>Now.

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<v Speaker 2>The UK government has reversed an unpopular cut that it

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<v Speaker 2>made to pensioners' winter few benefits. A pension is with

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<v Speaker 2>an income of under thirty five thousand pounds per year

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<v Speaker 2>will now be able to claim extra money to heat

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<v Speaker 2>their homes during the winter. It is a u turn

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<v Speaker 2>that Chancellor Rachel Reeves says she can afford because she

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<v Speaker 2>has stabilized the UK economy.

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<v Speaker 8>We did that with a number of difficult decisions. But

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<v Speaker 8>because of those decisions, our public finances are now in

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<v Speaker 8>a better position, which means this year we're able to

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<v Speaker 8>play the winter fuel payment to more pensioners. Nine million

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<v Speaker 8>we'll receive it this year.

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<v Speaker 2>The Chancellor earlier this year had to make last minute

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<v Speaker 2>changes to curb disability benefits to return her fiscal headroom

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<v Speaker 2>to just under ten billion pounds. The governing Labor Party

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<v Speaker 2>has seen an abrupt fall from popularity since taking office

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<v Speaker 2>last year, with most polls putting the party now second

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<v Speaker 2>place to Reform UK.

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<v Speaker 6>We're staying in the UK.

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<v Speaker 3>The government is to invest fourteen point two billion pounds

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<v Speaker 3>to help the build the Size wells See nuclear plant

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<v Speaker 3>in Suffolk and Eastern England, a project that's already been

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<v Speaker 3>on the drawing board for more than a decade remembers

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<v Speaker 3>EU and parts has more.

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<v Speaker 1>When completed, the three point two gigawatts Size or See

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<v Speaker 1>nuclear plant will generate enough power for six million homes,

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<v Speaker 1>which the government hopes will usher in a quote golden

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<v Speaker 1>age of abundant clean energy. The total price tag for

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<v Speaker 1>this clean energy, though, is likely to surpass forty billion pounds.

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<v Speaker 1>Today's announcement, ahead of tomorrow's spending review, brings the government's

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<v Speaker 1>total commitment to Size well See to just shy of

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<v Speaker 1>eighteen billion pounds, meaning there's plenty to do in raising

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<v Speaker 1>funds from the private sector. In London, I'm un pots

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<v Speaker 1>Bloomberg Radio.

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<v Speaker 2>To some corporate news now, Berklays is preparing to acts

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<v Speaker 2>more than two hundred investment bank jobs in a bid

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<v Speaker 2>to cut costs. The move is part of CEO CSVN

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<v Speaker 2>Kunta Krishnan's plan to boost the profitability of the division.

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<v Speaker 2>Bloomberg understands that managing directors will be the most senior

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<v Speaker 2>employees affected by the changes, which are expected to reduce

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<v Speaker 2>the lender's head count by around three percent. A Berkeley

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<v Speaker 2>spokesperson said that the cuts are part of regular talent

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<v Speaker 2>pool reviews to ensure continued investment in priority areas.

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<v Speaker 3>Apple has introduced a host of new artificial intelligence features

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<v Speaker 3>in a bid to match its companty. The announcements made

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<v Speaker 3>during the firm's Worldwide Developers Conference yesterday include an expanded

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<v Speaker 3>relationship with chat GPT maker open Ai. For Bloomberg's Ed

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<v Speaker 3>Ludlow says the news was marred by concerns about the

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<v Speaker 3>firms Siri software.

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<v Speaker 9>The stock did drop sharply, literally in the opening minutes

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<v Speaker 9>of the keynote presentation, and a part of that was

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<v Speaker 9>senior Apple executives basically saying, we have nothing to say

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<v Speaker 9>about Siri right now, the kind of core of Apple intelligence,

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<v Speaker 9>and we won't hear more about that later in the year.

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<v Speaker 9>Even though expectations around what Apple would or would not

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<v Speaker 9>say around AI were pretty low going into this. The

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<v Speaker 9>concern coming out today was, well, did we hear enough

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<v Speaker 9>that we understand the roadmap forward when it comes to

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<v Speaker 9>Apple and AI?

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<v Speaker 3>That's Benber Technology correspondent Ed Ludlow speaking there. The new

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<v Speaker 3>capabilities will help Apple's iOS operating system start to match

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<v Speaker 3>some of the features being offered by Samsung and Google's

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<v Speaker 3>Android devices.

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<v Speaker 2>And those are a few of our top stories for

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<v Speaker 2>you this morning. Well think you about Apple. The share

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<v Speaker 2>price fell by one point two percent at the close

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<v Speaker 2>on Monday after that keynote speech at the Worldwide Developers Conference.

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<v Speaker 2>In terms of more broadly though, what we're thinking about,

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<v Speaker 2>it's day two of these US China trade talks. Asian

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<v Speaker 2>traders seem to have been shrugging off for any tariff fears,

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<v Speaker 2>even though the effective tariff rate at the moment for

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<v Speaker 2>imports into the US is about seven spots zero seven percent.

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<v Speaker 2>But as I say, US officials have been quite optimistic.

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<v Speaker 2>So if you look at the Asian session, you got

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<v Speaker 2>the Msciaged Specific Index up by six tens of one percent,

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<v Speaker 2>the Nike is up nine tenths of one percent, the

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<v Speaker 2>hang saying up three tens of one percent, you get

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<v Speaker 2>the picture. In terms of stop futures for the US

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<v Speaker 2>also positive, The S and P five founded up four

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<v Speaker 2>tenths of one percent, so climbing.

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<v Speaker 4>To a three month high.

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<v Speaker 2>The dollar strengthening against most FX pairing, so up by

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<v Speaker 2>almost two tenths of one percent on the bloomberg A

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<v Speaker 2>Dollar Spot Index. The euros in retreat, so too is

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<v Speaker 2>the Japanese yen, and the pound is down a tenth

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<v Speaker 2>of one percent. Looking at the bottom markets then, ahead

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<v Speaker 2>of the inflation data that we get from the US

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<v Speaker 2>on Wednesday, tenure US yields little changed at four forty eight.

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<v Speaker 2>Bitcoin though is heading towards another record high, and we're

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<v Speaker 2>hovering around one hundred and nine thousand, five hundred dollars

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<v Speaker 2>just below that level. So those are the markets.

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<v Speaker 3>In a moment, we'll bring you the latest on events

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<v Speaker 3>in Los Angeles, plus where we are in the US

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<v Speaker 3>China trade talks which continue today in London. But an

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<v Speaker 3>other words on a story that we've been reading this

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<v Speaker 3>morning hungrily early this morning, and this is the National

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<v Speaker 3>Restaurant Awards rankings here in the UK, so list of

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<v Speaker 3>the one hundred best restaurants and fine dining is the

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<v Speaker 3>big winner, according to our food editor Kate crater As

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<v Speaker 3>coming out on top of the list was the restaurant

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<v Speaker 3>in the Ritz.

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<v Speaker 6>It's classical dining room.

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<v Speaker 3>So this is sort of an interesting shift around the

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<v Speaker 3>kind of restaurants that are coming out on top of

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<v Speaker 3>these things.

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<v Speaker 6>It's back to the classics.

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<v Speaker 2>Absolutely, it's that kind of you know, white gloves service.

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<v Speaker 2>It's the Ritz, It's the swankiest hotel in London. It's

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<v Speaker 2>not quite the priciest. Maybe they do at least have

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<v Speaker 2>a menu at tasting many for five courses at one

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<v Speaker 2>hundred and ninety nine pounds, so I suppose that's not

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<v Speaker 2>not too much of a nosebleed moment. Chef John Williams

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<v Speaker 2>has got this kind of classic fine dining restaurant has

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<v Speaker 2>one out.

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<v Speaker 3>I mean, I hope everyone else will enjoy. Also the

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<v Speaker 3>activity that I've been to this morning, which is trying

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<v Speaker 3>to count many of the top one hundred I've been to.

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<v Speaker 3>The full list is in k Craters piece. I think

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<v Speaker 3>I got to around ten, which I'm pretty happy about.

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<v Speaker 4>It too taken me to one.

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<v Speaker 3>We were discussing that earlier we have been to one

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<v Speaker 3>of them together. That's true, but there is I mean

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<v Speaker 3>plenty of options that it's also a nod to some

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<v Speaker 3>restaurants no longer with us as it were Lisles and

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<v Speaker 3>London came in at twenty one and that closed recently

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<v Speaker 3>ensured it here in London. But we'll put a link

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<v Speaker 3>to the article on our podcast show Notes. You can

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<v Speaker 3>read the full list for yourself.

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<v Speaker 2>Now let's get to our top story today. The Trump

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<v Speaker 2>administration is sending around seven hundred hours active duty marines

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<v Speaker 2>to respond to protests in Los Angeles. The California Governor,

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<v Speaker 2>Garret vin Newsom has called the decision unlawful and has

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<v Speaker 2>requested the White House revoke the order. Joining us now,

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<v Speaker 2>as our senior editor, Bill Ferries, Good morning, Bill, there

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<v Speaker 2>have been some images actually emerging we think of these

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<v Speaker 2>marines deploying active duty military within the US. It is

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<v Speaker 2>highly unusual. How has the president justified this?

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<v Speaker 8>Hi?

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<v Speaker 10>Yeah, thanks for having me.

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<v Speaker 6>You're right.

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<v Speaker 10>We have seen some images coming from the LA Times

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<v Speaker 10>of soldiers looking like they're leaving the twenty nine Palms

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<v Speaker 10>base and heading to Los Angeles, and a big caravan

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<v Speaker 10>of buses. So far, it is, as you mentioned, highly unusual.

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<v Speaker 10>It's highly unusual for the president to deploy National Guard

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<v Speaker 10>without a request from the state governor or from a

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<v Speaker 10>local mayor. That hasn't happened since the nineteen sixties. It's

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<v Speaker 10>even more unusual to be putting active duty troops, and

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<v Speaker 10>there's a lot of legal restrictions about how you do that.

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<v Speaker 6>The president.

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<v Speaker 10>The president is using this provision of US law that

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<v Speaker 10>allows the domestic deployment of troops in the case of

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<v Speaker 10>invasion by a foreign nation, a rebellion, or the danger

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<v Speaker 10>of a rebellion, and that's one of the things California

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<v Speaker 10>officials are immediately taking taking putting a question to saying

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<v Speaker 10>that there really is there's no there's no invasion, and

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<v Speaker 10>there's no rebellion. These are are legal protests, they're saying.

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<v Speaker 10>We did see on Monday that things seem to have,

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<v Speaker 10>i want to say, calmed down a little bit from

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<v Speaker 10>the weekend when you saw those waymo cars getting burned

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<v Speaker 10>and more people having disputes or being fighting back and

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<v Speaker 10>forth with authorities. So it was a relatively calm more

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<v Speaker 10>day compared to the weekend. But as you said, these

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<v Speaker 10>troops are look like they're heading for Los Angeles, and

0:11:57.760 --> 0:12:02.040
<v Speaker 10>you still have several hundred National Guard forces on the streets.

0:12:02.080 --> 0:12:02.280
<v Speaker 6>Now.

0:12:03.240 --> 0:12:06.160
<v Speaker 3>Yeah, indeed, because this has been part of the debate,

0:12:06.320 --> 0:12:09.640
<v Speaker 3>is that while the Trump administration claims the situation is

0:12:09.679 --> 0:12:12.920
<v Speaker 3>bad enough to warrant having marines in there, what is

0:12:12.960 --> 0:12:16.280
<v Speaker 3>happening on the ground appears to be much more limited

0:12:16.280 --> 0:12:18.680
<v Speaker 3>and certainly scattered being the word that our colleagues in

0:12:18.720 --> 0:12:20.840
<v Speaker 3>Los Angeles have used to describe the protests that have

0:12:20.840 --> 0:12:23.240
<v Speaker 3>happened in the past twenty four hours. Took us through

0:12:23.280 --> 0:12:28.040
<v Speaker 3>what the Californian officials, Governor Gavin Newsom and the mayor

0:12:28.080 --> 0:12:30.120
<v Speaker 3>of La Karen Bass, have been saying about this.

0:12:30.880 --> 0:12:33.839
<v Speaker 10>Well, they're saying that it's the federal response that has

0:12:33.920 --> 0:12:38.120
<v Speaker 10>actually made the situation worse. It's helped provoke some of

0:12:38.160 --> 0:12:41.160
<v Speaker 10>the people who are out on the streets at this point,

0:12:41.320 --> 0:12:46.200
<v Speaker 10>and even local officials La the LA Sheriff saying that,

0:12:46.280 --> 0:12:50.559
<v Speaker 10>you know, things weren't looking great, but officials, local authorities

0:12:50.600 --> 0:12:54.120
<v Speaker 10>had it under control and they're you know, they've sued

0:12:54.840 --> 0:12:58.640
<v Speaker 10>local the California officials have now sued the federal government

0:12:58.720 --> 0:13:02.640
<v Speaker 10>over its response. It's not clear how long that will

0:13:02.640 --> 0:13:05.600
<v Speaker 10>take to play out in the court, but as we've seen,

0:13:05.640 --> 0:13:07.120
<v Speaker 10>you know, I don't think the White House and the

0:13:07.160 --> 0:13:10.079
<v Speaker 10>Trump administration has really been deterred by the threat of

0:13:10.160 --> 0:13:14.000
<v Speaker 10>lawsuits so far. So I think, you know, California officials

0:13:14.040 --> 0:13:17.680
<v Speaker 10>are hoping they can get this de escalated and prevent

0:13:17.760 --> 0:13:21.920
<v Speaker 10>any more violence before these marines arrive, before there's any

0:13:22.000 --> 0:13:23.760
<v Speaker 10>kind of more and more of a deployment on the

0:13:23.760 --> 0:13:25.000
<v Speaker 10>streets of Los Angeles.

0:13:25.600 --> 0:13:28.040
<v Speaker 2>And yet again it seems to be a major decision

0:13:28.040 --> 0:13:30.319
<v Speaker 2>that may come down to a judge in terms of

0:13:30.800 --> 0:13:31.959
<v Speaker 2>the kind of legal action.

0:13:32.960 --> 0:13:36.280
<v Speaker 10>Yeah. Absolutely, I mean, it's definitely it's definitely the style

0:13:36.360 --> 0:13:39.640
<v Speaker 10>of the Trump administration to sort of push up against

0:13:39.720 --> 0:13:43.319
<v Speaker 10>legal boundaries and then fight to see if what they've

0:13:43.360 --> 0:13:45.679
<v Speaker 10>done can be accepted by the courts. We've seen that

0:13:45.960 --> 0:13:50.160
<v Speaker 10>throughout this battle over immigration. We've seen it when it

0:13:50.200 --> 0:13:54.000
<v Speaker 10>comes to foreign students in the US studying in American colleges.

0:13:54.160 --> 0:13:56.480
<v Speaker 10>We've seen it in the fight with the universities like

0:13:56.520 --> 0:14:00.120
<v Speaker 10>Harvard and Columbia. It is, you know, this is a

0:14:00.160 --> 0:14:05.240
<v Speaker 10>maximalist presidency, and the White House does focus on seeing,

0:14:05.240 --> 0:14:08.680
<v Speaker 10>you know, where exactly the boundaries to their authorities and

0:14:08.760 --> 0:14:09.360
<v Speaker 10>powers are.

0:14:10.720 --> 0:14:13.000
<v Speaker 3>But another story that even monitoring for us this morning

0:14:13.040 --> 0:14:15.600
<v Speaker 3>has been the US China trade talks happening here in

0:14:15.640 --> 0:14:18.439
<v Speaker 3>London heading into a second day today, Are there any

0:14:18.480 --> 0:14:19.360
<v Speaker 3>signs of progress?

0:14:20.280 --> 0:14:22.360
<v Speaker 10>Well, the fact that I think there's a second day

0:14:22.400 --> 0:14:24.960
<v Speaker 10>of talks is probably some sign of progress. You had

0:14:25.000 --> 0:14:28.680
<v Speaker 10>I think six hours of discussions yesterday. It went till

0:14:28.720 --> 0:14:34.560
<v Speaker 10>about eight pm London time there restarting today. President Trump

0:14:34.680 --> 0:14:37.600
<v Speaker 10>was out earlier saying he thinks the US is doing

0:14:37.680 --> 0:14:41.000
<v Speaker 10>well with China, but he said China's not easy. It's

0:14:41.040 --> 0:14:43.440
<v Speaker 10>the second time in the last couple of weeks he's

0:14:43.680 --> 0:14:48.320
<v Speaker 10>talked about the difficulties of negotiating with China, but talks

0:14:48.360 --> 0:14:52.960
<v Speaker 10>expected to continue today. There is some reporting from our

0:14:53.040 --> 0:14:59.760
<v Speaker 10>side that China may ease those restrictions on rare earth shipments,

0:15:00.520 --> 0:15:04.000
<v Speaker 10>and in turn, the Trump administration would look at easing

0:15:04.080 --> 0:15:06.760
<v Speaker 10>some of the measures they've put in, most recently that

0:15:06.880 --> 0:15:11.280
<v Speaker 10>targeted chip design software sales to China, as well as

0:15:11.280 --> 0:15:14.960
<v Speaker 10>the sale of jet engine parts that China really needs.

0:15:15.000 --> 0:15:18.560
<v Speaker 10>So both sides seeming to potentially give up something here

0:15:18.920 --> 0:15:21.480
<v Speaker 10>to get trade talks back on a better track.

0:15:23.960 --> 0:15:26.680
<v Speaker 3>This is Bloomberg Daybreak Europe, your morning brief on the

0:15:26.760 --> 0:15:29.800
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