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Speaker 1: Global business news twenty four hours a day at Bloomberg

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Speaker 1: dot com, the Radio, plus Globolact and on your radio.

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Speaker 1: This is a Bloomberg Business flash from Bloomberg World Headquarters

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Speaker 1: on Katherine Cowdery Bloomberg. Taking Stock is brought to you

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Speaker 1: by c I T. From transportation to healthcare to manufacturing.

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Speaker 1: c I T dot com Put knowledge to work. Wall

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Speaker 1: Street is retreating after fluctuating between gains and losses earlier. Today,

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Speaker 1: Investor c is six chance of the Fed raising rates

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Speaker 1: in December. That's up tem percentage points from a week earlier,

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Speaker 1: and it follows comments from Fed Bank at Cleveland President

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Speaker 1: Loretta Mester. Utilities falling for an eighth session, while consumer

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Speaker 1: stables and phone companies retreat, with their relatively generous payouts

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Speaker 1: losing favor as bond yields climb. We teck the markets

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Speaker 1: every fifteen minutes throughout the trading day on Bloomberg Radio.

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Speaker 1: Down Industrial average is down nine the eight points half

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Speaker 1: a percent trading at eighteen thousand, one fifty five. SMP

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Speaker 1: five foundered down eleven points, a loss of half a percent,

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Speaker 1: trading at twenty one fifty. Then Azack is down fifteen

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Speaker 1: points three tens of a percent, trading at fifty two

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Speaker 1: eighty five. West Texas Intermediate crude oil down just two

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Speaker 1: cents of barrel right now, trading at forty seventy eight.

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Speaker 1: Spot gold down three percent. That's a loss of forty

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Speaker 1: dollars and ten cents announts trading at twelve seventy two

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Speaker 1: sixty and that tenure Treasury down seventeen thirty seconds, driving

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Speaker 1: the yield up to one point six twelve percent. And

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Speaker 1: that's the Bloomberg Business Flash. This is taking stock with

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Speaker 1: Pim Fox and Kathleen Hayes on Bloomberg Radio. Google. Google

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Speaker 1: is introducing a new phone. It's called the Pixel. It

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Speaker 1: also is introducing an Amazon Echo Fighter. And here to

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Speaker 1: tell us more is Gene Munster. He is managing director

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Speaker 1: of Piper Jaffrey in Minneapolis. He can be followed on

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Speaker 1: Twitter at a Gene Munster. Alright, Jean, tell us what

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Speaker 1: is the most relevant for you? Is it the the

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Speaker 1: Echo Fighter that the Google has introduced, Alphabet has introduced,

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Speaker 1: or or is it the new the two new phones

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Speaker 1: the pixel and the pixel XL, the pixel and the

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Speaker 1: pixel sl THO. They are called Hero Phones, which basically

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Speaker 1: Google puts them out. This is a rebranded Nexus phones

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Speaker 1: and they put them out there so other hardware Android

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Speaker 1: hardware manufacturers like Samsung or HTC can get an idea

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Speaker 1: of what having Android in its purest form looks like.

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Speaker 1: And imagine if Android was an iPhone. That's essentially what

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Speaker 1: these pixel phones are. The reason why that's a significant

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Speaker 1: is this is going to implement day Dream, which is

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Speaker 1: a new platform from Google that will help VR work

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Speaker 1: more seamlessly on your phones and you put them in

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Speaker 1: those headsets and this is a big mackerel theme for

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Speaker 1: the next decade is going to be VR. And so

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Speaker 1: that's why we see this being the more important of

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Speaker 1: the two announcements. The just this importance of moving the

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Speaker 1: VR theme forward. Uh that said, is that the home

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Speaker 1: the Echo competitor is important because it's an example of

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Speaker 1: how we're using technology and more of a seamless environment

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Speaker 1: and probably the best example of how the interface of

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Speaker 1: technology is changing. It used to be a keyboard, mouse

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Speaker 1: and touchscreen and now it's our voice, our eyes, gestures

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Speaker 1: and eventually can be our thoughts and using voice is

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Speaker 1: a powerful thing that Google has happened into at home.

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Speaker 1: It's a big, big step, it seems they're taking in

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Speaker 1: so many directions. I am. I guess I'm especially interested

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Speaker 1: in the handsets, the phone part of this because, for example,

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Speaker 1: Mark German, one of our Bloomberg News correspondents, following this,

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Speaker 1: he said, behind the pixel, Google's first real threat to

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Speaker 1: the iPhone? Is it a real threat to the iPhone?

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Speaker 1: And how how much is that Google's intent? It's it's

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Speaker 1: their intent to build a phone that is competitive. In

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Speaker 1: order to be competitive, you have to be a competitive

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Speaker 1: to the iPhone. It's not going to change iPhones fortunes

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Speaker 1: over the next several years. What is going to happen

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Speaker 1: is that most likely is that you're going to see

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Speaker 1: Samsung users they're looking for a reason to go to

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Speaker 1: a different phone. At this point, HTC, other Android manufacturers,

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Speaker 1: those people that would are loyal to Android. But this

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Speaker 1: is not going to be enough to get a person

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Speaker 1: who's committed, and we measure how committed people out of

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Speaker 1: their iPhone, it tends to be close to n to switch.

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Speaker 1: I'm wondering if you could describe for us this combination

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Speaker 1: that is supposed to take place. I guess in the

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Speaker 1: living room right where you've got your phone. You're going

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Speaker 1: to have your Echo or your Aloe or your voice

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Speaker 1: recognition device, and then maybe you're going to have your

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Speaker 1: Roku or your Firestick from Amazon or the Apple television.

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Speaker 1: How is that all coming together and what does that

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Speaker 1: apply for investors? Well, right now, it's it's not coming

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Speaker 1: together very seamlessly. You just described it perfectly. Is that

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Speaker 1: you have a lot of different solutions that are kind

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Speaker 1: of all doing something slightly different that kind of want

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Speaker 1: to all circle back to your primary hub, which is

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Speaker 1: your phone and some of the applications on top of

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Speaker 1: your phone. The substance of how this is going to

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Speaker 1: come together is there will likely be a box eventually,

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Speaker 1: whether it's a Roku box or a fire TV or

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Speaker 1: Apple TV that has some of these personal assistants to Echo,

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Speaker 1: like the listening the active listening features, and then also

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Speaker 1: can control your TV. And that's when your TV becomes

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Speaker 1: the hub that's been referred to for a long time.

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Speaker 1: You'll still have your phone. Eventually, your phone is going

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Speaker 1: to be foldable because glass is going to be foldable,

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Speaker 1: and it will become your tablet, So your tallet probably

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Speaker 1: goes a way over time, and you have some device

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Speaker 1: that's carried with you all the time and then a

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Speaker 1: device in your home, and those two will probably be

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Speaker 1: from the same You'll probably be running the same platform

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Speaker 1: on both of whether it's iOS or Android. From an

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Speaker 1: investment standpoint, gen, how do you assess this this big project?

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Speaker 1: This is this a big undertaking from alphabet slash Google. Well,

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Speaker 1: it's they spend a lot on R and D. They

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Speaker 1: spent about twelve million dollars a year on R and D.

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Speaker 1: That compares to Apple about ten billion, and so there's

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Speaker 1: a lot of different places that they can go with

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Speaker 1: twelve billion dollars. If you're going to try to think

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Speaker 1: of how much of that money is going into some

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Speaker 1: of the stuff that we've announced today, it's probably relatively small.

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Speaker 1: We're probably talking about a billion dollars worth. And and

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Speaker 1: they spend most of their money in trying to make

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Speaker 1: search better. And part of making search better is is

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Speaker 1: this artificial intelligence the ability to use voice and your

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Speaker 1: common stream of speaking as a way to engage with Google.

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Speaker 1: And so there are places that play into that. The

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Speaker 1: key takeaway is this is there investing money, not all that,

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Speaker 1: but a lot of money into this, and what they're

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Speaker 1: trying to do is really get ahead of how we're

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Speaker 1: going to interact with computers in the future. And that's

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Speaker 1: why it's so important for Google, whether we're enacted with

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Speaker 1: computers through virtual environments or through more voice like at

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Speaker 1: home and so those combined. Well, Gene Muster, thank you

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Speaker 1: so very much. He's managing director at hyper Jaffrey talking

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Speaker 1: about the new Google phone and home products announced at

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Speaker 1: Altfit's big event today. I'm Kathleen Hayes along with Pim Fox.

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Speaker 1: This is taking stock on Bloomberg Radio. Keep it right here.

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Speaker 1: This is Bloomberg coming up another revolution when it comes

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Speaker 1: to the telephone industry. You're gonna meet Craig Walker. He's

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Speaker 1: the founder and the chief executive of dial Pad. That's

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Speaker 1: next