WEBVTT - Bloomberg's Rana on Microsoft, Talev on Clinton, Orlando(Audio)

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<v Speaker 1>that's a Bloomberg business flash. You're resuming to taking stock

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<v Speaker 1>with pin Box and Kathleen News on Bloomberg Radio. Microsoft,

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<v Speaker 1>in what is by far the largest acquisition in the

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<v Speaker 1>company's history, said it has reached a deal to purchase

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<v Speaker 1>linked In. That's the professional social networking company. Price tag

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<v Speaker 1>twenty six point two billion dollars in cash. Here to

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<v Speaker 1>tell us more on ag Rana. He is our senior

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<v Speaker 1>analyst of software and I T Services for Bloomberg Intelligence,

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<v Speaker 1>providing unique real time research and context on a variety

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<v Speaker 1>of industries and all the markets and government factors that

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<v Speaker 1>affect business. Our terminal customers can access this function. Just

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<v Speaker 1>type b I go on the Bloomberg on a rag.

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<v Speaker 1>Why is Microsoft buying a social network in company? I

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<v Speaker 1>think that's the first thing we saw this morning and

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<v Speaker 1>I thought this, you know, thought about the same um

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<v Speaker 1>you could say, can underum that outmost everybody had. But

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<v Speaker 1>you know, when you look at this thing, Microsoft is

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<v Speaker 1>looking at to expand into areas and cloud and mobile

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<v Speaker 1>that those are the two things have always talked about

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<v Speaker 1>ever since the new CEO came on. And within the cloud,

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<v Speaker 1>they already have a good handle on the infrastructure services.

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<v Speaker 1>They have a good handle on platform of the services

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<v Speaker 1>where they were really behind this cloud application something that

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<v Speaker 1>UM salesforce cells, workday cells. But when you look at

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<v Speaker 1>something like a LinkedIn, you can start using this as

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<v Speaker 1>a as a software where people can't look at prospective

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<v Speaker 1>their their clients there, you know, if they want to

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<v Speaker 1>hire somebody, so you can bypass the custom applications um,

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<v Speaker 1>you know, through this particular avenue. That's just one way

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<v Speaker 1>of looking at it. It's by far there are the

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<v Speaker 1>five biggest deals. I mean, it's by far the biggest,

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<v Speaker 1>right it is, you know, looking at Skype or Nokia

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<v Speaker 1>or others. Uh. But for LinkedIn, obviously somebody's making a

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<v Speaker 1>lot of money. But besides that, in terms of their

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<v Speaker 1>business model and how they grow the company and how

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<v Speaker 1>you know they mesh with Microsoft, what does they mean

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<v Speaker 1>for them? See one of the things they said, and

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<v Speaker 1>they talked about this being trying to get into the

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<v Speaker 1>CRTM space a couple of years ago. Um, they had

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<v Speaker 1>some little bit of hiccups over there in that area.

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<v Speaker 1>They the stock really got you know, beaten up over

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<v Speaker 1>the last few months. And you know, one could argue

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<v Speaker 1>with Microsoft under the Microsoft umbrella or their backing or

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<v Speaker 1>the financial mind, the distribution network, they can possibly achieve

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<v Speaker 1>what they want, uh, you know, far better on the

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<v Speaker 1>Microsoft than they were they could do as an independent company.

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<v Speaker 1>Now I'm just looking at the details for LinkedIn about

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<v Speaker 1>three billion in revenue, correct, and we're talking about net

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<v Speaker 1>income of oops, it doesn't have any net income. So

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<v Speaker 1>what is Microsoft going to bring to the party that

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<v Speaker 1>will turn this into a profit making enterprise? So you

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<v Speaker 1>as as you remember, Microsoft is one of the companies

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<v Speaker 1>that provides legacy software. It's been around for ages. The

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<v Speaker 1>question is how does it be an enterprise company for

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<v Speaker 1>the next ten years. And you have a lot of

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<v Speaker 1>these Internet based companies that are trying to um you know,

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<v Speaker 1>increase their network, increase their product portfolio, and Microsoft can

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<v Speaker 1>help them with that regard, and this company helps Microsoft

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<v Speaker 1>of trying to give products that are more relevant for

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<v Speaker 1>the next generation. I don't think you want to look

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<v Speaker 1>at it from a creative point of view or the

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<v Speaker 1>financial point of view at this point to see whether

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<v Speaker 1>it's strategically fits with the company or not, and then

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<v Speaker 1>go out and examine two to three years from now

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<v Speaker 1>to see how it stands financially well and it's it

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<v Speaker 1>just is what does it tells? Though? I guess about uh,

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<v Speaker 1>you're you're you're telling us, but I'm really trying to

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<v Speaker 1>see them. Where is Microsoft going? Because this is some

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<v Speaker 1>people consider LinkedIn basically social media side, right. Definitely, it's

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<v Speaker 1>not a technology side. It's got some tech analogy that

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<v Speaker 1>it's it's infrastructure, but it's about bringing people together, bringing

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<v Speaker 1>people together, absolutely, Cathleene. So think about it this way.

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<v Speaker 1>What does salesforce dot com provide? It provides a portal

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<v Speaker 1>for sales people to go in and enter their records

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<v Speaker 1>to figure out who did I talk to today? Who's

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<v Speaker 1>my right prospect? How can I reach out to them

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<v Speaker 1>and have that whole history of conversation there to make

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<v Speaker 1>sure how I close my deal? Why can't you do

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<v Speaker 1>that with Lincoln? If you if you are a recruiter today,

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<v Speaker 1>why do you need a human capital management software where

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<v Speaker 1>you wanna you're looking for prospective going out and looking

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<v Speaker 1>for some employees for talent acquisition? Why don't you just

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<v Speaker 1>go to LinkedIn and hire someone directly from there? And

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<v Speaker 1>then you have to think about it. Can you extend

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<v Speaker 1>this platform to use it internally? Whether you want to

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<v Speaker 1>monitor the life of an employee ever since that person

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<v Speaker 1>came into the firm to the point they left and

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<v Speaker 1>left the phone. Does it somehow bring me closer to

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<v Speaker 1>the Microsoft brand? If I'm not in the Microsoft world otherwise,

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<v Speaker 1>but I now I'm part of linked In, I don't

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<v Speaker 1>think about I mean, I don't think that helps in

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<v Speaker 1>that way. It truly helps Microsoft case of being a

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<v Speaker 1>little bit more relevant in the cloud world. Do you

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<v Speaker 1>think that we're going to come back and look at

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<v Speaker 1>this as a Nokia deal, because you know, I gotta say,

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<v Speaker 1>everything that you've described about LinkedIn was almost exactly what

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<v Speaker 1>Steve Bomber said when they acquired Nokia. The Nokia was

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<v Speaker 1>slightly different that the Angel over there was consumer and

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<v Speaker 1>I mean they were looking truly behind the mirror when

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<v Speaker 1>they were doing this. This one is a lot more

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<v Speaker 1>forward looking. All right, Well, Ana, Grana, you're going to

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<v Speaker 1>be staying one step ahead. So we're gonna let you

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<v Speaker 1>get back to work because you're a very busy man today.

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<v Speaker 1>Senior analysts of software and I T Services for Bloomberg

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<v Speaker 1>Intelligence joining us in our Bloomberg eleven thirty studio in

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<v Speaker 1>New York. Now, how we are going to Margaret tal

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<v Speaker 1>if she's senior White House reporter for Bloomberg editorial. She

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<v Speaker 1>is joining us from Hillary Clinton's speech today, so she's also,

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<v Speaker 1>did I say, senior White House correspondent. That's why she's

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<v Speaker 1>in Cleveland. Some regret what did Hillary Clinton say today

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<v Speaker 1>and how did it resonate after the Orlando of shootings.

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<v Speaker 1>Of course, a much more somber tone than what she

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<v Speaker 1>had expected to be doing inclusum today. This was originally

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<v Speaker 1>supposed to be her sort of debut battleground state appearance,

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<v Speaker 1>you know, sort of a victory lap but without alienating

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<v Speaker 1>Bernie Sanders fans, etcetera. It obviously turned into something much different.

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<v Speaker 1>A moment of silence before she took the stage, uh,

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<v Speaker 1>and then a message UM that was both a gun

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<v Speaker 1>controlled message and an inclusivity message, but also a tough

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<v Speaker 1>on terrorism message, saying that um uh, the US has

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<v Speaker 1>to respond by taking military style weapons off the street,

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<v Speaker 1>that this is a call to prevent the proliferation of

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<v Speaker 1>the sort of assault weapons UM. But at the same

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<v Speaker 1>time that Saudi Arabian and their US allies and partners

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<v Speaker 1>that reaching have to do more themselves to stop funding

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<v Speaker 1>or allowing people uh in their own countries to fund

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<v Speaker 1>radical She had um efforts and UH, suggesting also that

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<v Speaker 1>Donald Arms approach is the wrong approach UM in terms

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<v Speaker 1>of talking about bands on LOGM, immigration and that sort

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<v Speaker 1>of saying calling for the country to return to a

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<v Speaker 1>sort of unity spirit like there was after nine eleven.

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<v Speaker 1>That was her message today, Margaret, I wonder if you

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<v Speaker 1>could speak to the issue of terrorism as a political

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<v Speaker 1>debating point when it comes to the battle between Donald

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<v Speaker 1>Trump and Hillary Clinton in the election. Certainly. I mean

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<v Speaker 1>when Secretary Clinton took the stage today, she said, today

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<v Speaker 1>is not about politics, but of course this has become

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<v Speaker 1>immediately about politics, uh since the Sunday early Sunday morning shooting. UM.

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<v Speaker 1>Both candidates today this is dominating the dialogue in the debate.

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<v Speaker 1>Secretary Clinton again using this renew call for doing control

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<v Speaker 1>to talk about inclusivity, support for LGBT community, and support

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<v Speaker 1>for American Muslims. Donald Trump using this both to call

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<v Speaker 1>on President Obama and Secretary Clinton had stepped down and

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<v Speaker 1>step back, and to renew calls for immigration bands UH

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<v Speaker 1>and surveillance of Muslims. So two really different approaches, each

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<v Speaker 1>galvanizing their basis. The political question, of course, is what

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<v Speaker 1>does the middle of America. What do independence and moderate

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<v Speaker 1>Americans ideologically want to hear and want to see done

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<v Speaker 1>from their leaders. Well, it seems significant to me, and

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<v Speaker 1>you just mentioned this that she's focusing on Saudi Arabia

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<v Speaker 1>for example, and and allowing funding for terrigors organizations to occur.

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<v Speaker 1>She's addressing schools that radical Muslims, we would consider them

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<v Speaker 1>radical from our point of view. At least are are

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<v Speaker 1>teaching kids there are certain ideology. How hard can she

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<v Speaker 1>drive that point home? And how far do you think

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<v Speaker 1>that takes her with the electorate politically? That's an appealing message,

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<v Speaker 1>you know for Americans. I think that, Uh. The nuance

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<v Speaker 1>to watch for is how she addresses the threat today

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<v Speaker 1>calling it radicals Johodism. You don't hear her talking much

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<v Speaker 1>about radical Islam or radical Muslims, although the word yet

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<v Speaker 1>he certainly conveys the Lama as opposed to be a

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<v Speaker 1>different religion, but talking about radical johda Uh. Hillary Clinton

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<v Speaker 1>is trying to calibrate this in a way where she

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<v Speaker 1>can show both of her experience a Secretary of State, uh,

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<v Speaker 1>and in terms of her outlook that she is, you know,

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<v Speaker 1>tough and willing to say tough things, even two allies,

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<v Speaker 1>but at the same time that she doesn't think the

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<v Speaker 1>right approaches is to turn that toughnessness inward on all

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<v Speaker 1>Muslim Americans. UM trying to sort of send off what

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<v Speaker 1>will be Republican Donald Trump's attacks on her, you know,

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<v Speaker 1>toughness and't willing to fight UM, while while still saying

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<v Speaker 1>that she's not going to get drawn into kind of

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<v Speaker 1>an emotional rhetorical battle. I want to thank you very

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<v Speaker 1>much for joining us. Margaret Tullef, Senior White House correspondent

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<v Speaker 1>for Bloomberg News in Cleveland today, I mean attended Secretary

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<v Speaker 1>Clinton's speech earlier in the day, and just to note,

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<v Speaker 1>our hearts and our prayers go out to the victims

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<v Speaker 1>and the families of the shooting in Orlando, and we

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<v Speaker 1>also send our thoughts to the people of Orlando. You're

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<v Speaker 1>listening to taking Stock on pim Fox my co host

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<v Speaker 1>Kathleen Hayes. You're listening to Bloomberg Radiohea