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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg

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Speaker 1: Daybacurate podcast, available every morning on Apple, Spotify or wherever

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Speaker 1: you listen. It's Monday, the twentieth of January. Here in London.

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Speaker 1: I'm Caroline Hepcare.

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Speaker 2: And I'm Stephen Carroll. Coming up today, Donald Trump plans

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Speaker 2: to declare a US energy emergency and sign dozens of

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Speaker 2: executive orders after today's inauguration.

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Speaker 1: AMASS begins to release hostages from Gaza in exchange for

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Speaker 1: Palestinians held in Israeli prisons as a fragile CEASEPHAT goes

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Speaker 1: into effect.

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Speaker 2: Plus more than just a trim, research finds hedge funds

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Speaker 2: have kept more than half the three point seven trillion

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Speaker 2: dollars their investments generate.

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Speaker 1: Let's start with the round up of our top stories.

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Speaker 1: US presidents elect Donald Trump says that he will sign

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Speaker 1: close to one hundred executive orders within hours of taking office.

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Speaker 1: Later today, the incoming president spoke of his plans a

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Speaker 1: pre inauguration dinner that was tended by his biggest financial backers,

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Speaker 1: political allies, and business leaders, including Elon Musk and Jeff Bezos.

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Speaker 1: Trump also held a rally at an arena in Washington, DC,

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Speaker 1: where he set out what he hopes to achieve in

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Speaker 1: his second term.

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Speaker 3: Together, We're going to cut your taxes, end inflation, slash

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Speaker 3: your prices, getting them back down, raise your wages, and

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Speaker 3: bring thousands of factories back to the USA, right where

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Speaker 3: they belong. And that'll be done through tariffs and smart policy.

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Speaker 3: We will build American, we will buy American, and we

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Speaker 3: will hire American.

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Speaker 1: Chump also promised to end the quote reign of a

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Speaker 1: failed and corrupt political establishment in Washington. The events in

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Speaker 1: Washington offer Trump a victory lap in the city he

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Speaker 1: left four years ago after his supporters rioted at the

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Speaker 1: US Capitol in a failed bid to keep him in power.

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Speaker 1: And we will have live coverage of the inauguration here

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Speaker 1: on Bloomberg throughout the day, with President select Donald Trump

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Speaker 1: taking the oath of office at midday US East Coast time,

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Speaker 1: that's five pm in London.

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Speaker 2: Bloomberg understands are the first focus for President elect Donald

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Speaker 2: Trump is a plan to declare a National Energy emergency.

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Speaker 2: Sources say the move will allow the administration to unleash

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Speaker 2: domestic energy production, reversing President Joe Biden's actions to combat

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Speaker 2: climate change. According to a report by the Brennan Center

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Speaker 2: for Justice, declaring up national emergency allows a president to

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Speaker 2: tap into as many as one hundred and fifty special

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Speaker 2: powers normally intended to address hurricanes, terrorist attacks, and other

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Speaker 2: unforeseen events.

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Speaker 1: Bitcoin has hit a new record high in the last hour,

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Speaker 1: at topping one hundred and nine thousand dollars per token.

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Speaker 1: Bloomberg understands that President's elect Donald Trump is planning to

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Speaker 1: release an executive order once in office, elevating crypto as

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Speaker 1: a policy priority and giving industry inside is a voice

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Speaker 1: within his administration. The record high for bitcoin has come

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Speaker 1: after a digital token debuted by the President elect rattled

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Speaker 1: the cryptocurrency market over the weekend, attracting billions of dollars

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Speaker 1: of trading volume while stoking concerns about conflicts of interest.

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Speaker 2: Donald Trump has also applaus to delay the enforcement of

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Speaker 2: a national security law that threatened to ban TikTok, but

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Speaker 2: it remains unclear whether the apps Chinese parent company byt

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Speaker 2: dances able or willing to secure a US backer in

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Speaker 2: time to avoid a permanent shutdown. Our Chief North ASA

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Speaker 2: correspondent Stephen Engel says the president eal x plan is

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Speaker 2: not without controversy.

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Speaker 4: We've heard from the House Speaker, We've heard from the

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Speaker 4: Senate Intelligence head, all saying that it's not legal necessarily

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Speaker 4: for Donald Trump to extend this by ninety days, but

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Speaker 4: that Reprieve has a lot of caveats that ninety days

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Speaker 4: he must go to Congress and essentially get the extensions certified.

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Speaker 4: He needs to show to Congress that there is a

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Speaker 4: justified process already in place.

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Speaker 2: Bloomberg's Stephen Engel speaking there. A ban on the social

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Speaker 2: media platform kicked in over the weekend, before service was

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Speaker 2: restored following Trump's promise to sign an executive order granting

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Speaker 2: another ninety days for TikTok.

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Speaker 1: Now to other news, Hamas has released three Gaza hostages

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Speaker 1: in exchange for ninety Palestinians held in Israeli prisons. The

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Speaker 1: swap came after the start of a temporary cease far

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Speaker 1: between the two sides. In all, thirty three hostages and

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Speaker 1: close to one thousand prisons are expected to be freed

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Speaker 1: over the next six weeks, with talks to be held

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Speaker 1: on securing a second phase of the cease far Outgoing

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Speaker 1: US President Biden says that it will be up to

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Speaker 1: Donald Trump's new administration to maintain the ceasefar in Gaza.

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Speaker 5: Today's ceesfire in Gaza and the release of hostages is

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Speaker 5: a result of a principal and effective pulse that we've

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Speaker 5: presided over for months, and we got it without a

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Speaker 5: wider war in the Middle East than many predicted, and

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Speaker 5: now falls the next administration to help the implement this deal.

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Speaker 1: Biden and Trump have both taken credit for the deal,

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Speaker 1: with the President Elect's Middle East ENVOYE. Stephen Whitkoff, also

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Speaker 1: involved in the final negotiations. According to the Health Ministry

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Speaker 1: in Hamaswan Gaza, more than forty six thousand Palestinians have

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Speaker 1: been killed by Israel's military campaign. The will was triggered

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Speaker 1: in October of twenty twenty three when Hamas attacked southern Israel,

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Speaker 1: killing more than one thy two hundred people and taking

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Speaker 1: hundreds more as hostages.

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Speaker 2: Hedge funds have long been regarded as notoriously expensive. Now

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Speaker 2: new research is revealing just how costly they are for

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Speaker 2: their clients. Bloomberg's ta Adebayo has the story.

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Speaker 6: Of the three point seven trillion dollars in profits they

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Speaker 6: earned as an industry since nineteen sixty nine. Nearly half

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Speaker 6: or staggering one point eight trillion dollars was gone as fees.

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Speaker 6: That's according to estimates by LCH Investments, a fund of

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Speaker 6: hedge funds with soaring assets, firms have raised their charges

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Speaker 6: to more than fifty percent of gains, up from the

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Speaker 6: roughly thirty percent they earned until the early two thousands.

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Speaker 6: The industry's high fees have been criticized by investors like

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Speaker 6: Warren Buffett and Bill Grosse, who call them unbelievable and

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Speaker 6: a giant ripoff in London to you what at a

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Speaker 6: buyot Bloomberg Radio.

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Speaker 1: And those are our top stories for you this morning.

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Speaker 1: Looking at the markets, we had a strong finished last

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Speaker 1: week for the S and P five hundred. It's best

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Speaker 1: week since the election. As we go into the inauguration

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Speaker 1: of Donald Trump today. Of course, there is no cash

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Speaker 1: equity market or cash treasury is trading today because of

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Speaker 1: the national holiday in the US. Stop futures for Europe

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Speaker 1: are slightly high this morning. Bitcoin through that are record high,

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Speaker 1: but just off the level now trading at one hundred

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Speaker 1: and eight thousand dollars. All prices are also slight lea

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Speaker 1: softer this morning and after last week in terms of

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Speaker 1: the fifty to one hundred, closing at a record high

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Speaker 1: one point four percent. Heart fifty one hundred stop futures

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Speaker 1: this morning are slightly lower, down three tens of one percent.

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Speaker 1: Those the markets.

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Speaker 2: In the moment, we'll discuss Donald Trump's plans for his

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Speaker 2: first executive orders, pust bring you more on the ceasefire

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Speaker 2: in Gaza taking effect. But first we wanted to just,

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Speaker 2: of course let you know that the World a Romic

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Speaker 2: Forum in Davos begins today. We'll have full coverage of

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Speaker 2: cross Bloomberg's platforms over the coming days and bring you

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Speaker 2: some top interviews from the event as well. But there's

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Speaker 2: two great articles to read on Bloomberg this morning if

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Speaker 2: you want to think about how this event is going

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Speaker 2: to play out. One is about how CEOs are preparing

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Speaker 2: for Donald Trump's return, overshadowing perhaps our discussions at Davos,

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Speaker 2: and how this time around there embracing them him much

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Speaker 2: more enthusiastically than they did eighty years ago.

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Speaker 1: Yeah, I mean, you can understand an immensely difficult position

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Speaker 1: that executives are in, having to deal with the change,

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Speaker 1: the real big age in political weather. One of our pieces, though,

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Speaker 1: talking about how many executives are even pre groveling to

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Speaker 1: Donald Trump, and that their positions are shifting quite swiftly.

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Speaker 2: Now yeah, I mean the headline were you lying? Says

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Speaker 2: it all about whether or not CEOs are sticking to

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Speaker 2: positions they previously committed to. A slightly lighter note, though,

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Speaker 2: our colleague Ad Stapely from Bloomberg Pursuits has all the

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Speaker 2: best places that you want to be if you're in Davos,

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Speaker 2: including the restaurants and some of the parties, and he

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Speaker 2: has a great story about how to knock into one

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Speaker 2: with involving Jason Derulo, which I will let you read

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Speaker 2: Tom Blueberog dot com for a slash pursuit.

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Speaker 1: Okay, because stuff the highs and loads of Davos, the

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Speaker 1: pleasures and difficulties. Right. Let's think about, though, President select

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Speaker 1: Donald Trump and Vice President's elect JD. Vance, who will

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Speaker 1: be sworn into office today by the US's Supreme Court

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Speaker 1: Chief Justice John Roberts, of course, following a weekend of

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Speaker 1: festivities and rallies with more to come. What a change

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Speaker 1: versus Donald Trump's first term, which ended in twenty twenty

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Speaker 1: one on with him as a pariah to many in

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Speaker 1: his own party, joining US now to discuss as Blueberg,

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Speaker 1: Senior editor for US Economics and Government, Derek Wallbank, Good morning, Derek.

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Speaker 1: The inauguration is taking place indoors at the US Capital Rotunda,

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Speaker 1: the start of Donald Trump's second term.

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Speaker 7: Yes, that's exactly right, and that's because temperatures outside are

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Speaker 7: projected at somewhere around minus three celsius, and that's on

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Speaker 7: the high side. So it's going to be a very

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Speaker 7: frosty time in Washington. But, as you said, a very

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Speaker 7: warm welcome that Donald Trump is getting into his second term.

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Speaker 7: A lot of people who had been frigid towards him

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Speaker 7: are now have now thoughed, and Trump is coming into

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Speaker 7: a situation rather unlike the one he came in the

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Speaker 7: first time. Right, Donald Trump has been I think in

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Speaker 7: his first term you could fairly say he was feeling

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Speaker 7: it out for a while, trying to figure out how

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Speaker 7: to operate the leavers of government, openly frustrated by being

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Speaker 7: blocked and guard railed at many different turns. This time,

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Speaker 7: he's coming in with a reasonably pliant house in Republican control.

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Speaker 7: Lightly but there a Republican Senate that seems to be

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Speaker 7: willing to give him most of what he's looking for

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Speaker 7: a six ' to three majority on the Supreme Court

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Speaker 7: in terms of justice is appointed by Republicans, three of

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Speaker 7: whom he put on the bench himself, and a lot

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Speaker 7: of the people who were in there to check him

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Speaker 7: and his White House staff won't be there. So Donald

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Speaker 7: Trump very much is coming to office ready to do

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Speaker 7: what he wants to do, feeling like he has a mandate,

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Speaker 7: and much of official Washington is under his party's control.

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Speaker 2: And Jack, we've been reporting on some of the things

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Speaker 2: that Donald Trump plans to do in that first batch

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Speaker 2: of around one hundred executive orders he's told us to expect,

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Speaker 2: including measures targeting the energy sector.

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Speaker 7: Yes, and that's in the first hours, right. There may

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Speaker 7: be more besides Trump has you mentioned energy? Trump has

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Speaker 7: said that he wants to unleash American energy. He's going

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Speaker 7: to do this in a couple of interesting ways.

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Speaker 6: Right.

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Speaker 7: So when you're looking at these orders, there will be

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Speaker 7: some orders to do a certain thing. There will also

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Speaker 7: be some orders to sort of lay the groundwork to

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Speaker 7: be able to do what he wants. And so the

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Speaker 7: energy one would be like that would be declaring an

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Speaker 7: emergency with related with relation to energy and what that

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Speaker 7: does is that the emergency declaration allows you to unlock

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Speaker 7: additional powers and abilities that you would not have in

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Speaker 7: normal times. The US law tends to be somewhat pliable

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Speaker 7: when it comes to what the definition of an emergency is.

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Speaker 7: Courts have generally held that the presidency is allowed to

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Speaker 7: decide what the definition of emergency is. And so Trump

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Speaker 7: is going to use that tool to its maximum ability.

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Speaker 7: You know, we've talked before though about some other things

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Speaker 7: he wants to do in terms of immigration being stiffer, there,

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Speaker 7: increased deportations. That's something he said he wants to do.

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Speaker 7: He wants to take a lot more control over the

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Speaker 7: federal workforce and career career positions that aren't necessarily political jobs.

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Speaker 7: One of the things he wants to do is get

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Speaker 7: everyone back to the office five days a week. So

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Speaker 7: you can see an awful lot of things that may

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Speaker 7: be coming up very very quickly for Trump again in

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Speaker 7: that first in that first little.

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Speaker 1: Bit, Yeah, and a huge change in tone then coming

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Speaker 1: and in policy. Foreign leaders and tech titans are sort

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Speaker 1: of trying to are going to be attending the inauguration

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Speaker 1: and you know, trying to follow this change in tone.

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Speaker 1: Who got Italy's Premier Georgia Maloney. Everybody in Europe is

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Speaker 1: basically looking to see who is attending what they're going

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Speaker 1: to be talking about with Trump.

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Speaker 7: Yeah, and you know, Maloney's somebody I would look to

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Speaker 7: if I was sort of from a European lens of

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Speaker 7: somebody who's who has figured out how to talk to

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Speaker 7: Trump in this two point zero sort of way. I

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Speaker 7: do think that there is going to be a substantial

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Speaker 7: amount of hand ringing among those who have been the

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Speaker 7: target of trump'shire, as well as those who have traditionally

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Speaker 7: been friends of the United States. You know, if you

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Speaker 7: look at countries from the United Kingdom to Canada to Australia,

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Speaker 7: you have a fair number of governments trying to figure

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Speaker 7: out how they're going to deal with this guy, with

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Speaker 7: people in major positions of power, be those foreign secretaries,

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Speaker 7: be those ambassador roles, who have said some things about

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Speaker 7: Donald Trump that Donald Trump knows they've said about him, right,

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Speaker 7: And that's causing no end of difficulty in some of

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Speaker 7: these countries. So that's going to be a thing that

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Speaker 7: people are going to have to try and figure out

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Speaker 7: how do you engage this guy, especially if you're of

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Speaker 7: the view that what he is doing is bad, wrong, repugnant,

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Speaker 7: whatever it might be. But you still need to figure

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Speaker 7: out a way to work with the United States. That's

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Speaker 7: going to be a very big pickle for a lot

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Speaker 7: of these countries and indeed companies. And what we're seeing,

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Speaker 7: as you rightly said, is that we're seeing an initial

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Speaker 7: courtship at the start of this presidency.

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Speaker 2: Okay, Derek Wellbank, Garsenior Editor, thank you very much.

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Speaker 1: Now let's go to the Middle East, where a six

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Speaker 1: weeks cease far between Israel Hamas appears to be holding

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Speaker 1: after it came into a fate yesterday, perhaps in some

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Speaker 1: measure also a major change given the new White House administration.

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Speaker 1: Our correspondent Oliver Crook is live this morning at the

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Speaker 1: Korem Shalom crossing in southern Israel, which has been a

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Speaker 1: key access point for humanitarian aid coming into Gaza from Egypt.

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Speaker 1: A good morning, Oliver, thanks for being with us. What

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Speaker 1: is the situation where you are this morning? What changes

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Speaker 1: with this cease fire?

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Speaker 8: Yeah, so listen, a lot of changes with the ceasefire,

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Speaker 8: and the sort of first ab dnce we had of

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Speaker 8: that with yesterday was obviously with the fighting stopping, the

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Speaker 8: sort of gunshots ending over Gaza, despite the fact that

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Speaker 8: there was delayed to the ceasepire deal that came into

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Speaker 8: effect about three hours later than originally anticipated. And during

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Speaker 8: that three hours and during that morning, a number of

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Speaker 8: people were killed still in fighting in Gaza. So everyone

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Speaker 8: was really holding their breath to make sure that this

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Speaker 8: thing could come into action. And now we've just basically

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Speaker 8: struck the hour of twenty two hours of ceasefire that

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Speaker 8: has held since the beginning, the release of three female

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Speaker 8: hostages back to Israel, ninety prisoners from the Palestinian side

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Speaker 8: being released back to them. And here also critically at

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Speaker 8: this border crossing, whereas this is at the very sort

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Speaker 8: of southern point of Gaza, right where it meets the

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Speaker 8: Egyptian border. This is one of the key flowways of

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Speaker 8: humanitarian aid. And I just spoke to the manager of

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Speaker 8: the checkpoint who's expecting basically eight hundred trucks to cross

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Speaker 8: into Gaza at the various different entrances today, about six

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Speaker 8: hundred of which we'll be crossing right here where I'm

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Speaker 8: standing right right now. And to give you a little

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Speaker 8: bit of context, eight hundred for the day we've had

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Speaker 8: on an average, according to one of the humanitarian organizations

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Speaker 8: I spoke to yesterday is about fifty trucks a day,

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Speaker 8: so that is a significant increase, and really what they

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Speaker 8: would like to see is a sort of stabilization about

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Speaker 8: five hundred or six hundred trucks a day to really

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Speaker 8: get some of that, you know, not only humanitarian aid,

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Speaker 8: but also just that commercial of this commercial good into

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Speaker 8: Gaza that has been basically blockaded.

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Speaker 2: Oliver, What's another part of course, the ceasefire agreement has

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Speaker 2: been the release of the first three hostages who were

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Speaker 2: being held in Gaza, on the release of Palestinian prisoners.

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Speaker 2: I mean, what's been the reaction in Israel to those

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Speaker 2: first releases of hostages.

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Speaker 8: I mean, listen, I think the last seventy two hours

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Speaker 8: and most people were very sort of cautiously optimistic. There's

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Speaker 8: a lot of sort of held breath. There was a

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Speaker 8: huge gathering at sort of Hostage Square, one of this

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Speaker 8: sort of parts of Televiv where you know, hundreds of

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Speaker 8: people were gathering just waiting and waiting for every update.

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Speaker 6: You know.

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Speaker 8: This sort of began at about four pm yesterday and

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Speaker 8: we're getting the updates from the Red Crosses. They had

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Speaker 8: been transferred from Hamas to the Red Cross and then

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Speaker 8: eventually back to Israeli the IDF and then flown back

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Speaker 8: into Israel, and everyone was obviously sort of overjoyed. This

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Speaker 8: sort of drives home the fact that, you know, the

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Speaker 8: first part of this deal is a release of a

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Speaker 8: total of thirty three hostages, not all of whom are alive,

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Speaker 8: and there's still ninety seven that are being held in

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Speaker 8: Gaza at the moment, which is going to be you know,

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Speaker 8: those will not even all be handed back in the

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Speaker 8: second second phase of the deal. On the Palestinian side, again,

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Speaker 8: there is now more than a thousand, almost two thousand

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Speaker 8: prisoners will be released over the fullness of this cease fire.

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Speaker 8: And how this is going to work is basically every

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Speaker 8: few days three or four hostages will be released, and

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Speaker 8: the same thing sort of in the opposite direction of

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Speaker 8: prisoners being released until the end of the sort of

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Speaker 8: ceasefire agreement and hopefully leading to the second phase of

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Speaker 8: this deal.

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Speaker 1: So, yes, how likely is it that we will see

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Speaker 1: this next phase of the deal. There is surely a

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Speaker 1: significant change with President elect Donald Trump being inaugurated. I mean,

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Speaker 1: it's thought that there are Israeli settler lead who will

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Speaker 1: attend the inauguration in Washington, according to one of their spokespeople.

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Speaker 1: Bloomberg reported on that I mean, is the Trump White

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Speaker 1: House going to be significantly more favorable to Israel? What

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Speaker 1: do we think about the next part of the cease far?

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Speaker 8: I mean, I think there is reason to believe that

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Speaker 8: that is the case, that Trump will be very sort

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Speaker 8: of supportive of Israel. I think that most of the

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Speaker 8: people that you speak to here are extremely favorable towards

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Speaker 8: Donald Trump, are really sort of happy about the fact

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Speaker 8: that he has been elected president of the United States.

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Speaker 8: That is not to say that they really dislike Joe Biden,

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Speaker 8: but they really find that Donald Trump is a stronger

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Speaker 8: ally to the state of Israel. And I think it's

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Speaker 8: very difficult to deny the fact and not sort of

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Speaker 8: take into account that this sort of deal came into

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Speaker 8: being basically with ramped up pressure over the last month.

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Speaker 8: Many of the people here credit that largely to Donald Trump,

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Speaker 8: and even Benjamin Netanyahoo when the deal went through, he

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Speaker 8: called Trump first who and he issued a statement he

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Speaker 8: was a lot of praise towards Trump, and at the end,

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Speaker 8: as kind of a footnote, it was Oh and also

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Speaker 8: thanks to Joe Biden for his help to getting this

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Speaker 8: over the line, so listen. I think that whatever next

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Speaker 8: phase comes here, I think that a lot of people

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Speaker 8: are not that confident that this is going to go

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Speaker 8: to phase two. In some ways, Phase two is much

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Speaker 8: harder to achieve than Phase one because it requires the

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Speaker 8: full withdrawal of Israeli truths from Gaza. Is the Israeli

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Speaker 8: state really going to allow the security of over Gaza

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Speaker 8: and to ensure that Hamas has not come back into power,

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Speaker 8: ensure that to anybody else, Will anybody else be willing

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Speaker 8: to take on that responsibility? These are going to be

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Speaker 8: the very challenging questions, and as you say, Caroline, it's

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Speaker 8: going to be absolutely instrumental the man who will be

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Speaker 8: inaccurated for President of the United States in just a

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Speaker 8: few hours in sort of shaping how the rest of

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Speaker 8: the course of this war goes and how the region

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Speaker 8: will look in the future.

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Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 2: stories making news from London to Wall Street and beyond.

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Speaker 1: Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.

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Speaker 1: I'm Caroline Hepka.

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Speaker 2: And I'm Stephen Carol. Join us again tomorrow morning for

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