WEBVTT - Introducing: The Bloomberg Daybreak Podcast

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<v Speaker 1>This is Tom Keane introducing you to the Bloomberg Daybreak podcast.

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<v Speaker 1>Every day, Nathan Hager, Karen Moscow, and Michael Barr bring

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<v Speaker 1>you a roundup of the top stories. It's all on

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<v Speaker 1>the Daybreak podcast feed by six am each morning, and today,

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<v Speaker 1>for our Bloomberg Surveillance audience, we bring you a sample

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<v Speaker 1>of the show.

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<v Speaker 2>Good morning, I'm Nathan Hager.

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<v Speaker 3>And I'm Karen Moscow. Here are the stories we're following today.

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<v Speaker 2>We began with the latest developments in the investigation into

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<v Speaker 2>the door panel blowout on a Boeing seven thirty seven

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<v Speaker 2>Max nine. Bloomberg's John Tucker is here with the latest

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<v Speaker 2>John and Nathan.

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<v Speaker 4>More and more of the focus is turning to bolts

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<v Speaker 4>and whether they were properly tightened. As the NTSP tries

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<v Speaker 4>to find answers to how that unused door panel blew

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<v Speaker 4>off at Alaska Airlines Boeing seven thirty seven Max nine

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<v Speaker 4>over Portland. Another airline says it's found loose bolts. United

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<v Speaker 4>confirms it found loose bolts after inspanking identical door plugs

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<v Speaker 4>as the one that blew out on the Alaska plane.

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<v Speaker 4>NTSB chairman Jennifer Hamendi we are.

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<v Speaker 5>Aware of the reports of that are coming back from

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<v Speaker 5>the inspections from United and Alaska and Boeing. Our team

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<v Speaker 5>is collecting that information and there will be some follow

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<v Speaker 5>up from the inspections.

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<v Speaker 4>It's unclear how many loose polts were found. The NTSB

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<v Speaker 4>may now broaden the probe into other Max nine jets

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<v Speaker 4>beyond the Alaska Airlines model on which the accident occurred.

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<v Speaker 4>It intensified scrutiny of the manufacturing process that Boeing at

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<v Speaker 4>its key supplier, Spirit Aerosystems, which makes the fuselage for

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<v Speaker 4>the seven thirty seven Max. I'm John Tucker, Bloomberg Radio.

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<v Speaker 3>All right, John, Thanks well. Another major story that we're

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<v Speaker 3>following this morning involves a high stakes court hearing in Washington,

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<v Speaker 3>d C. Lawyers for Donald Trumpel's spar with federal prosecutors

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<v Speaker 3>over whether the former president is immuniform charges of trying

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<v Speaker 3>to overturn the twenty twenty election results. Bloomberg's Amy Morris

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<v Speaker 3>has more from Washington.

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<v Speaker 6>Oral arguments are set for today before a three judge

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<v Speaker 6>panel with the US Court of Appeals for the d

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<v Speaker 6>C Circuit over whether Donald Trump is shielded from prosecution

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<v Speaker 6>for his actions before and during the January sixth riot

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<v Speaker 6>at the US Capitol. Now Trump said on social media

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<v Speaker 6>he planned to attend, but he is not expected to

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<v Speaker 6>address the court. The judges could hand down their ruling

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<v Speaker 6>at any time after the hearing, and a ruling in

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<v Speaker 6>favor of Trump could be a fatal blow to the

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<v Speaker 6>Justice Department's efforts to try him. While either side has

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<v Speaker 6>the right to appeal, neither the full DC Court nor

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<v Speaker 6>the U. S. Supreme Court are required to take the case,

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<v Speaker 6>so this Court's ruling could be the final word in Washington.

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<v Speaker 6>Amy Moore as Bloomberg.

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<v Speaker 2>Radio, Okay, Amy, thank you will staying in Washington. Bipartisan

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<v Speaker 2>anger is building against Defense Secretary Lloyd Austin. We get

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<v Speaker 2>that story from Bloomberg's Dan Schwartzman.

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<v Speaker 7>Politicians on both sides of the isle are demanding answers

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<v Speaker 7>as to why Defense Secretary Lloyd Austin failed to let

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<v Speaker 7>anyone know he was hospitalized on New Year's Day. The

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<v Speaker 7>retired general didn't even let the White House know he

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<v Speaker 7>was at Walter Reed Medical Center for four days. On

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<v Speaker 7>a day after that, Austin was hospitalized, but did not

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<v Speaker 7>tell the White House, Congress, or even the Deputy Defense

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<v Speaker 7>Secretary for several days. Republican Senator Susan Collins Remain says

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<v Speaker 7>it's quote inexplicable that the secretary's condition remains shrouded in secrecy,

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<v Speaker 7>while Massachusetts Democrat Seth Bulden says this astounding that the

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<v Speaker 7>president in Austin's own deputy did know he was in

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<v Speaker 7>the hospital. According to White House spokesman John Kirby, President

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<v Speaker 7>Biden has no plans to replace Austin. Dan Schwartzman Bloomberg Radio.

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<v Speaker 3>All right, Dan, thanks now to the latest developments in

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<v Speaker 3>the Middle East. Secretary of State Anthony Blencoln says, who

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<v Speaker 3>the militants will face consequences if they continue to attack

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<v Speaker 3>ships in the Red Sea, he told reporters, and more

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<v Speaker 3>violence will be detrimental for the region.

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<v Speaker 8>It's clearly not in the interest to anyone Israel, Lebanon

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<v Speaker 8>has Bola for that matter, to see this escalate and

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<v Speaker 8>to see an actual conflict. And the Israelis have been

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<v Speaker 8>very clear with us that they want to find a

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<v Speaker 8>diplomatic way forward.

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<v Speaker 3>Secretary of State Antony Blane and meets with Israel's leader

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<v Speaker 3>Benjaminte and Yahoo later today.

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<v Speaker 2>Let's turn back to markets now, Karen, as you mentioned,

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<v Speaker 2>futures are lower following yesterday's rally on Wall Street that

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<v Speaker 2>saw the Nasdaq surge more than two percent. In Asia,

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<v Speaker 2>the Knee Ky in Japan closed at its highest level

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<v Speaker 2>in thirty four years.

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<v Speaker 3>Me and Mole Nathan. Former bond king Bill Gross is

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<v Speaker 3>signaling he is now steering clear of treasuries. In a

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<v Speaker 3>post on x Gros said ten year treasury yields at

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<v Speaker 3>four percent are overvalued. Gross made millions late last year

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<v Speaker 3>after a big bet the Fed would pivot toward interest

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<v Speaker 3>rate cuts for twenty twenty four.

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<v Speaker 2>Well Karen, the president's top economic advisor, says the White

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<v Speaker 2>House's work is not done when it comes to lowering

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<v Speaker 2>prices for American consumers. Lyle Brainerd spoke with Joe Wisenthal

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<v Speaker 2>and Tracy Alloway on the Bloomberg Godlots podcast.

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<v Speaker 9>Some prices have not come down, and we're fighting pretty

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<v Speaker 9>hard to get those prices to come down. One area

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<v Speaker 9>that really is difficult for Americans is healthcare.

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<v Speaker 2>White House Economic advisor Lyle Brainerd a ads the administration

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<v Speaker 2>will use its position to continue calling out corporations who

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<v Speaker 2>aren't passing along cost savings to consumers For the full conversation,

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<v Speaker 2>download the latest edition of Bloomberg Odd Lots that's available

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<v Speaker 2>everywhere you get your podcasts. And Shares of Nvidia closed

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<v Speaker 2>at a record high. The company's chip technology dominates in

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<v Speaker 2>data centers used to create artificial intelligence software. Now, in

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<v Speaker 2>Vidia's announced new products to help the personal computer industry

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<v Speaker 2>lower consumers with AIPCS.

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<v Speaker 3>Another chip maker in the spotlight this morning, Nathan Samsung

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<v Speaker 3>Electronics is posted at six straight quarter of declining operating profit.

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<v Speaker 3>The results underscore how demand for smartphones and the memory

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<v Speaker 3>chips remain sluggish given economic uncertainty, and shares.

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<v Speaker 2>Of Match are up more than eight percent in early trading,

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<v Speaker 2>that says The Wall Street Journal reports Elliott Investment Management

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<v Speaker 2>has built a stake of about a billion dollars in

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<v Speaker 2>the dating app company.

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<v Speaker 3>Time now for a look at some of the other

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<v Speaker 3>stories making news around the world, and for that we're

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<v Speaker 3>joined by Bloomberg's Amy Morris. See me, Good morning, Good.

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<v Speaker 6>Morning, Karen. Homeland Security Secretary Alejandro new Orcas was an

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<v Speaker 6>eagle pass taxes to meet with elected leaders and border

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<v Speaker 6>patrol agents at the southern US border. Now, he says

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<v Speaker 6>it's too early to tell if the significant drop in

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<v Speaker 6>border crossings over the past week is related to the

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<v Speaker 6>holiday season or stepped up enforcement operations in Mexico.

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<v Speaker 5>Our immigration system is outdated and broken and has been

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<v Speaker 5>in need of reform for literally decades.

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<v Speaker 1>On this, everyone agrees.

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<v Speaker 6>Arizona Senator Kirsten Cinema, an independent who has been central

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<v Speaker 6>in negotiations, says she's not sure whether text is going

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<v Speaker 6>to be available, but she hopes there will be something

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<v Speaker 6>to present this week. House Republicans are pushing to impeach

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<v Speaker 6>may Orcis. Senate Republicans want him to help cut a

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<v Speaker 6>border security deal. President Biden meanwhile moving to win back

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<v Speaker 6>black voters. Bloomberg's Nancy Lyons has more. On his trip

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<v Speaker 6>to South Carolina.

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<v Speaker 10>President Biden delivered remarks at Mother Emmanuel AMA Church in Charleston,

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<v Speaker 10>South Carolina, where why supremacist killed nine people in twenty fifteen.

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<v Speaker 10>Biden says our country must deal with racism.

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<v Speaker 1>It is a poison throughout our history, driptestination apart, He says,

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<v Speaker 1>no plice.

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<v Speaker 2>In America, not today tomorrow.

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<v Speaker 10>Ever, Biden's favorability among black voters in seven swing states

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<v Speaker 10>has slipped seven percentage points since October to sixty one

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<v Speaker 10>percent in December. That's according to a Bloomberg News Morning

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<v Speaker 10>Consult poll in Washington. Nancy lyons Bloomberg Radio Now.

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<v Speaker 6>Former President Trump wants his supporters to give him a

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<v Speaker 6>definitive win in Iowa, even with a commanding leading the

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<v Speaker 6>polls with less than a week before the caucuses. Trump's stressed, turnout, the.

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<v Speaker 11>People of this state are going to cast the most

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<v Speaker 11>important vote of your entire lives. I believe that too

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<v Speaker 11>very much.

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<v Speaker 12>I used to say that twenty sixteen, and I believed

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<v Speaker 12>it then, and now I believe this is even much

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<v Speaker 12>more important.

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<v Speaker 6>The Trump campaign believes a decisive Iowa victory would put

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<v Speaker 6>pressure on his GOP rivals to drop out. Florida Governor

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<v Speaker 6>DeSantis and former South Carolina Governor Nikki Haley have failed

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<v Speaker 6>to gain much significant ground in the Iowa polls against Trump.

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<v Speaker 6>Next up New Hampshire January twenty third. That's where Nicki

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<v Speaker 6>Haley has been gaining more momentum while still trailing Trump.

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<v Speaker 6>Global News twenty four hours a day and whenever you

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<v Speaker 6>want it with Bloomberg News Now, I'm Amy Morris, and

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<v Speaker 6>this is Bloomberg. Karen right, Nimi, thank you.

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<v Speaker 3>We to bring you news throughout the day here on

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<v Speaker 3>Bloomberg Radio. But now you can get the latest news

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<v Speaker 3>on demand whenever you want it. Subscribe to Bloomberg News

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<v Speaker 3>Now to get the latest headlines at the click of

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<v Speaker 3>a button. Get informed on your schedule. You can listen

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<v Speaker 3>and subscribe to Bloomberg News Now. I'm the Bloomberg Business app,

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<v Speaker 3>Bloomberg dot Com plus Apples, Spotify, and anywhere else you

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<v Speaker 3>get your podcasts. Time now for the Bloomberg Sports Update.

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<v Speaker 3>Here's John stash Hour John.

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<v Speaker 12>Karn the Michigan Wolverines national champions in college footwall in Houston.

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<v Speaker 12>They beat Washington thirty four to thirteen. It was a

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<v Speaker 12>quick start for Michigan. First two possessions were both Donovan

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<v Speaker 12>Edwards touchdown runs. They covered forty one and forty three yards.

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<v Speaker 12>Michigan didn't get into the end zone again until the

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<v Speaker 12>fourth quarter. Blake Corum scored, capping a seventy one yard drive,

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<v Speaker 12>and later Corum scored again, coming after Mike Stanrsill's eighty

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<v Speaker 12>one yard interception return. Washington star quarterback Michael Pennix junior

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<v Speaker 12>twenty seven of fifty one did have two interceptions. Michigan

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<v Speaker 12>goes fifteen to zero, wins the national title for the

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<v Speaker 12>first time since nineteen ninety seven, and the question now

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<v Speaker 12>is if Jim Harbar returns as coach. Our heads back

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<v Speaker 12>to the NFL. The Washington Commanders looking for a new

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<v Speaker 12>coach after they had the second worst record in the NFL.

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<v Speaker 12>They've got new ownership and Ron Rivera fired after four

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<v Speaker 12>years on the job. Carolina Panthers already knew they were

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<v Speaker 12>looking for a new coach now at GM as well

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<v Speaker 12>as the Panthers fired to the manager Scott Fitterer. Celtics

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<v Speaker 12>got forty points from Jalen Brown but lost at Indiana

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<v Speaker 12>one thirty three to one thirty one. The Pacers lost

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<v Speaker 12>their star player Tyrese Haliburton a hamstring injuries, headed for

0:09:59.720 --> 0:10:03.160
<v Speaker 12>an MP John Moran is headed for a season ending

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<v Speaker 12>shoulder surgery. Memphisis star guard was suspended for the first

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<v Speaker 12>twenty five games of the season and ends up only

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<v Speaker 12>playing nine games on the year. Wizard's thirtieth loss of

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<v Speaker 12>the year beaten by Oklahoma City one thirty six to

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<v Speaker 12>one twenty eight. The Bruins lost at Colorado four to

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<v Speaker 12>three in a shootout. John Stashedward Bloomberg Sports.

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<v Speaker 11>From coast to coast, from New York to San Francisco,

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<v Speaker 11>Boston to Washington, DC, nationwide on SIRIUSXAM, the Bloomberg Business app,

0:10:30.240 --> 0:10:33.760
<v Speaker 11>and Bloomberg dot Com. This is Bloomberg Daybreak.

0:10:34.960 --> 0:10:37.800
<v Speaker 2>Good morning. I'm Nathan Hager. Boeing is working to get

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<v Speaker 2>at seven thirty seven Max nine jets back in the

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<v Speaker 2>air after the FAA ordered them temporarily grounded following last

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<v Speaker 2>week's door panel blowout. But the investigation into the cash

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<v Speaker 2>cow for Boeing is finding more installation issues maybe than

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<v Speaker 2>just the ones on that Alaska airline's flight. For more,

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<v Speaker 2>we're joined now by Bloomberg News Global Aviation head Benedict Campbell.

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<v Speaker 2>Thanks for being here, Benedict. Get us caught up on

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<v Speaker 2>the investigation so far.

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<v Speaker 13>Good morning. So we heard from the NTSB again yesterday.

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<v Speaker 13>They're holding daily press briefings to give the latest update.

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<v Speaker 13>And what we heard yesterday is that indeed they are

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<v Speaker 13>still focused on this particular Alaska aircraft, but they've said

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<v Speaker 13>that they might well be looking more deeply at other

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<v Speaker 13>aircraft broadly, more broadly than just the seven three seven

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<v Speaker 13>Max nine. Right now, the focus remains very much on

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<v Speaker 13>that door panel on that plug as they call it,

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<v Speaker 13>that came flying out, and they're trying to determine what

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<v Speaker 13>exactly caused that component to come loose. One thing that

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<v Speaker 13>they did say was they are focused intensely on the

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<v Speaker 13>bolts that are sort of fixing that particular component. And

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<v Speaker 13>speaking of bolts, we have heard from United Air and

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<v Speaker 13>from Alaska that they've found some loose bolts on their aircraft.

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<v Speaker 13>So obviously that's sort of the area around which the

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<v Speaker 13>investigation is focused right now.

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<v Speaker 2>How unusual is it to see these signs of improper

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<v Speaker 2>tightening on an aircraft like this? Is this part of

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<v Speaker 2>the reason why we're getting these suggestions that the investigation

0:12:13.240 --> 0:12:14.800
<v Speaker 2>could go beyond the Max nine.

0:12:15.640 --> 0:12:18.240
<v Speaker 13>Absolutely, and this is obviously something you don't want to

0:12:18.240 --> 0:12:20.640
<v Speaker 13>find on an aircraft, but sadly it's something that they

0:12:20.679 --> 0:12:23.280
<v Speaker 13>have found, not just in this case, but also in

0:12:23.360 --> 0:12:28.240
<v Speaker 13>previous sort of investigations where they looked at improper manufacturing.

0:12:28.559 --> 0:12:32.480
<v Speaker 13>We had a misaligned drilling holes on some seven three

0:12:32.520 --> 0:12:34.959
<v Speaker 13>sevens last year. Then we had some loose bolts in

0:12:35.000 --> 0:12:38.600
<v Speaker 13>another part of a plane. So these defects appear to

0:12:38.720 --> 0:12:41.400
<v Speaker 13>come up again and again, and you have to remember

0:12:41.640 --> 0:12:44.160
<v Speaker 13>the max the seven three seven Max has a very

0:12:44.240 --> 0:12:48.079
<v Speaker 13>sort of fragile reputation after these two crashes that happened

0:12:48.080 --> 0:12:51.000
<v Speaker 13>almost five years ago. A lot of people still somewhat

0:12:51.040 --> 0:12:54.960
<v Speaker 13>squeamish about that aircraft and an abbus not abbus. Boeing

0:12:55.280 --> 0:13:00.680
<v Speaker 13>have managed to repair that reputation, but somewhat fragilely. And

0:13:01.600 --> 0:13:04.880
<v Speaker 13>the question now is will that pull them back into

0:13:04.920 --> 0:13:07.240
<v Speaker 13>a hole? How can they emerge from that? Those are

0:13:07.240 --> 0:13:09.120
<v Speaker 13>a lot of things they're trying to work through right now.

0:13:09.240 --> 0:13:12.040
<v Speaker 2>Yeah, it raises the question about whether Boeing could be

0:13:12.120 --> 0:13:16.400
<v Speaker 2>running into a crisis of confidence with flyers. Is that

0:13:16.440 --> 0:13:18.320
<v Speaker 2>the concern for Boeing, That is.

0:13:18.400 --> 0:13:20.400
<v Speaker 13>Very much the concern. I mean, we've seen the crisis

0:13:20.400 --> 0:13:22.599
<v Speaker 13>of confidence on the side of the investors. If you

0:13:22.640 --> 0:13:24.600
<v Speaker 13>look at what happened with the stock yesterday took a

0:13:24.640 --> 0:13:28.320
<v Speaker 13>deep tumble. Spirit Aerosystems, that's the company that makes the

0:13:28.360 --> 0:13:30.920
<v Speaker 13>fuselage for the seven three seven is by an is

0:13:30.960 --> 0:13:35.040
<v Speaker 13>by far Boeing's most important supplier. They also dropped quite

0:13:35.120 --> 0:13:38.199
<v Speaker 13>sharply yesterday. So there is a real crisis in confidence

0:13:38.400 --> 0:13:41.640
<v Speaker 13>for the time being. It's the focus is very much

0:13:41.679 --> 0:13:44.080
<v Speaker 13>sort of on the investor side, on the financial side.

0:13:44.240 --> 0:13:48.360
<v Speaker 13>But if this spreads into a bigger crisis, say the flyers,

0:13:48.440 --> 0:13:51.960
<v Speaker 13>the flying public, and then the customers. Ultimately, that will

0:13:51.960 --> 0:13:55.080
<v Speaker 13>obviously be something very hard for Boeing to get back from.

0:13:55.240 --> 0:13:57.439
<v Speaker 13>This had been the year, or supposed to be the

0:13:57.520 --> 0:14:00.480
<v Speaker 13>year of the great comeback of Boeing. They they've had

0:14:00.480 --> 0:14:03.319
<v Speaker 13>a couple of difficult years, as I said, but they'd

0:14:03.400 --> 0:14:06.679
<v Speaker 13>managed to get their manufacturing back in order. The orders

0:14:06.679 --> 0:14:10.200
<v Speaker 13>and deliveries are back, They'd planned to really increase the

0:14:10.240 --> 0:14:12.600
<v Speaker 13>output rate of the seven three seven. All of these

0:14:12.640 --> 0:14:15.560
<v Speaker 13>things were sort of what lay ahead for them for

0:14:15.640 --> 0:14:18.640
<v Speaker 13>this year. And right now it looks as if things

0:14:18.679 --> 0:14:22.120
<v Speaker 13>will certainly slow down for them quite a bit. The FAA,

0:14:22.480 --> 0:14:25.520
<v Speaker 13>which is the regulator in the US, they're saying, not

0:14:25.640 --> 0:14:27.800
<v Speaker 13>so fast. We want to make sure this plane is

0:14:27.840 --> 0:14:30.600
<v Speaker 13>ready to fly again before we can unground it, and

0:14:30.960 --> 0:14:32.880
<v Speaker 13>Boeing has to sort of comply with that.

0:14:33.360 --> 0:14:36.040
<v Speaker 2>Is this something that could put the relationship between Boeing

0:14:36.080 --> 0:14:39.720
<v Speaker 2>and Spirit Aerosystems in jeopardy? I mean, where could the

0:14:39.800 --> 0:14:42.600
<v Speaker 2>blame potentially lie for this? Got about a minute left.

0:14:43.400 --> 0:14:46.720
<v Speaker 13>It's a difficult relationship that these two companies have. Spirit

0:14:46.840 --> 0:14:49.360
<v Speaker 13>used to be part of Boeing. Then it will spun out,

0:14:49.400 --> 0:14:51.560
<v Speaker 13>but they're still very much sort of entwined and they're

0:14:51.640 --> 0:14:55.520
<v Speaker 13>locked in a slightly unhappy marriage here. They obviously Boeing

0:14:55.560 --> 0:14:58.640
<v Speaker 13>needs to have very close quality controls at Spirit to

0:14:58.720 --> 0:15:01.200
<v Speaker 13>make sure that the products that chipped over to Boeing

0:15:01.680 --> 0:15:04.280
<v Speaker 13>meet their standards, and that's something that hasn't always been

0:15:04.320 --> 0:15:06.400
<v Speaker 13>the case in the past. So Boeing really needs to

0:15:06.440 --> 0:15:09.600
<v Speaker 13>tighten the screws, as it were, on Spirit and make

0:15:09.640 --> 0:15:11.760
<v Speaker 13>sure that they have the right people there, they have

0:15:11.800 --> 0:15:15.640
<v Speaker 13>the right controls. There's new management at that company. Ultimately

0:15:15.880 --> 0:15:18.120
<v Speaker 13>the buck stops with Boeing. They need to have the

0:15:18.160 --> 0:15:20.080
<v Speaker 13>final sign off on the plane. So sure, you can

0:15:20.120 --> 0:15:22.560
<v Speaker 13>blame Spirit and point your finger as much as you

0:15:22.600 --> 0:15:25.840
<v Speaker 13>want at them, but the plane is ultimately sold by Boeing,

0:15:25.880 --> 0:15:28.320
<v Speaker 13>so they need to make sure that their network is

0:15:29.080 --> 0:15:29.760
<v Speaker 13>up to snuff.

0:15:31.560 --> 0:15:34.640
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