WEBVTT - Introducing: The Bloomberg Daybreak Podcast

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<v Speaker 1>Hi, it's Carol and Tim's here too, and today we

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<v Speaker 1>want to introduce you to the Bloomberg Daybreak podcast.

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<v Speaker 2>We certainly do every day. Nathan Hager, Karen Moscow, and

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<v Speaker 2>Amy Morris bring you a roundup of the top stories

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<v Speaker 2>from Wall Street to Washington and around the world. It's

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<v Speaker 2>all in the Daybreak podcast feed by six am each morning.

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<v Speaker 1>And today, for our business week audience, we bring you

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<v Speaker 1>a sample of the show. Click the link in this

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<v Speaker 1>description to subscribe to the Bloomberg Daybreak podcast on Apple, Spotify,

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<v Speaker 1>or anywhere you listen.

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<v Speaker 3>Good morning, I'm Nathan Hager.

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<v Speaker 4>And I'm Karen Moscow. Here are the stories we're following today.

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<v Speaker 3>We begin with the latest developments in the investigation into

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<v Speaker 3>the door panel blowout on a Boeing seven thirty seven

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<v Speaker 3>MAX nine. Bloomberg's John Tucker is here with the latest,

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<v Speaker 3>John and Nathan.

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<v Speaker 5>More and more of the focus is turning to bolts

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<v Speaker 5>and whether they were properly tightened, as the NTSP tries

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<v Speaker 5>to find answers to how that unused door panel blew

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<v Speaker 5>off at Alaska Airlines Boeing seven thirty seven MAX nine

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<v Speaker 5>over Portland, another airline, and says it's found loose poults.

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<v Speaker 5>United confirms it found loose bolts after inspecting identical door

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<v Speaker 5>plugs as the one that blew out on the Alaska plane.

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<v Speaker 5>NTSB chairman Jennifer Hamendi, we are.

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<v Speaker 6>Aware of the reports of that are coming back from

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<v Speaker 6>the inspections from United and Alaska and Boeing. Our team

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<v Speaker 6>is collecting that information and there will be some follow

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<v Speaker 6>up from the inspections.

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<v Speaker 5>It's unclear how many loose poults were found. The NTSB

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<v Speaker 5>may now broaden the probe into other Max nine jets

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<v Speaker 5>beyond the Alaska Airlines model on which the accident occurred.

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<v Speaker 5>It intensified scrutiny of the manufacturing process that Boeing and

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<v Speaker 5>its key supplier, Spirit Aerosystems, which makes the fuselage for

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<v Speaker 5>the seven thirty seven Max. I'm John Tucker, Bloomberg Radio.

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<v Speaker 4>All right, John, Thanks well. Another major story that we're

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<v Speaker 4>following this morning involves a high stakes court hearing in Washington,

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<v Speaker 4>d C. Lawyers for Donald Trumpel's spar with federal prosecutors

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<v Speaker 4>over whether the former president is a uniform charge of

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<v Speaker 4>trying to overturn the twenty twenty election results. Bloomberg's Amy

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<v Speaker 4>Morris has more from Washington.

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<v Speaker 7>Oral arguments are set for today before a three judge

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<v Speaker 7>panel with the US Court of Appeals for the d

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<v Speaker 7>C Circuit over whether Donald Trump is shielded from prosecution

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<v Speaker 7>for his actions before and during the January sixth riot

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<v Speaker 7>at the US Capitol. Now Trump said on social media

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<v Speaker 7>he planned to attend, but he is not expected to

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<v Speaker 7>address the court. The judges could hand down their ruling

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<v Speaker 7>at any time after the hearing, and a ruling in

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<v Speaker 7>favor of Trump could be a fatal blow to the

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<v Speaker 7>Justice Department's efforts to try him. While either side has

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<v Speaker 7>the right to appeal, neither the full DC Court nor

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<v Speaker 7>the US Supreme Court are required to take the case,

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<v Speaker 7>so this court's ruling could be the final word in Washington.

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<v Speaker 7>Amy Morris Bloomberg Radio.

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<v Speaker 3>Okay, Amy, thank you will staying in Washington. Bipartisan anger

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<v Speaker 3>is building against Defense Secretary Lloyd Austin. We get that

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<v Speaker 3>story from Bloomberg's Dan Schwartzman.

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<v Speaker 8>Politicians on both sides of the isle are demanding answers

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<v Speaker 8>as to why Defense Secretary Lloyd Austin failed let anyone

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<v Speaker 8>know he was hospitalized done New Year's Day. The retired

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<v Speaker 8>General didn't even let the White House know he was

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<v Speaker 8>at Walter Reed Medical Center for four days, depending on

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<v Speaker 8>a day after that, Austin was hospitalized, but did not

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<v Speaker 8>tell the White House, Congress, or even the deputy Defense

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<v Speaker 8>Secretary for several days. Republican Senator Susan Collins Remain says

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<v Speaker 8>it's quote inexplicable that the Secretary's condition remains shrouded in secrecy,

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<v Speaker 8>while Massachusetts Democrat Seth Moulden says this astounding that the

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<v Speaker 8>President in Austin's own deputy did know he was in

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<v Speaker 8>the hospital. According to White House spokesman John Kirby, President

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<v Speaker 8>Biden has no plans to replace Austin. Dan Schwartzman Bloomberg Radio, all.

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<v Speaker 4>Right, Dan, thanks now to the latest developments in the

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<v Speaker 4>Middle East. Secretary of State Anthony Blencoln says, who the

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<v Speaker 4>militants will face consequences if they continue to attack ships

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<v Speaker 4>in the Red Sea, he told reporters, and more violence

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<v Speaker 4>will be detrimental for the region.

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<v Speaker 1>It's clearly not.

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<v Speaker 3>In the interest to anyone Israel Lebanon has Bola for

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<v Speaker 3>that matter.

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<v Speaker 9>To see to see.

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<v Speaker 3>This escalate and to see an actual conflict the Israelis

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<v Speaker 3>have been very clear with us that they want to

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<v Speaker 3>find a diplomatic way forward.

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<v Speaker 4>Secretary of State Anthony Blinken meets with Israel's leader Benjaminte

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<v Speaker 4>and Yahoo later today.

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<v Speaker 3>Let's turn back to markets now, Karen, As you mentioned,

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<v Speaker 3>futures are lower following yesterday's rally on Wall Street that

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<v Speaker 3>saw the Nasdaq surge more than two percent. In Asia,

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<v Speaker 3>the Knee Ky in Japan closed at its highest level

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<v Speaker 3>in thirty four years.

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<v Speaker 4>Me and Mole Nathan, former bond king Bill Gross is

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<v Speaker 4>signaling he is now steering clear of treasuries. In a

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<v Speaker 4>post on X grossad ten year treasury yields at four

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<v Speaker 4>percent are overvalued. Gross made millions late last year after

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<v Speaker 4>a big bet the Fed would pivot toward interest rate

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<v Speaker 4>cuts for twenty twenty four.

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<v Speaker 10>Well.

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<v Speaker 3>Karen, the president's top economic advisor, says the White House's

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<v Speaker 3>work is not done when it comes to lowering prices

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<v Speaker 3>for American consumers. Lyyle Brainerd spoke with Joe Wisenthal and

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<v Speaker 3>Tracy Alloway on the Bloomberg Godlots podcast.

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<v Speaker 10>Some prices have not come down, and we're fighting pretty

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<v Speaker 10>hard to get those prices to come down. One area

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<v Speaker 10>that really is difficult for Americans is healthcare?

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<v Speaker 3>White House Economic Advisor Lyle Brainerd ads the administration will

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<v Speaker 3>use its position to continue calling out corporations who aren't

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<v Speaker 3>passing along cost savings to consumers. For the full conversation,

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<v Speaker 3>download the latest edition of Bloomberg Odd Lots that's available

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<v Speaker 3>everywhere you get your podcasts. And Shares of Nvidia closed

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<v Speaker 3>at a record high. The company's chip technology dominates in

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<v Speaker 3>data centers used to create artificial intelligence software. Now, in

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<v Speaker 3>Vidia's announced new products to help the personal computer industry

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<v Speaker 3>lower consumers with AIPCS.

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<v Speaker 4>Another chip maker in the spotlight this morning, Nathan Samsung

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<v Speaker 4>Electronics is posted at six straight quarter of declining operating profit.

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<v Speaker 4>The results underscore how demand for smartphones and the memory

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<v Speaker 4>chips remain sluggish given economic uncertainty, and shares.

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<v Speaker 3>Of Match are up more than eight percent in early trading,

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<v Speaker 3>that says The Wall Street Journal reports Elliott Investment Management

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<v Speaker 3>has built a stake of about a billion dollars in

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<v Speaker 3>the dating app company.

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<v Speaker 4>Time now for a look at some of the other

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<v Speaker 4>stories making news around the world, and from that, we're

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<v Speaker 4>joined by Bloomberg's Amy Morris. Amy, Good morning, Good.

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<v Speaker 7>Morning, Karen, Homeland Security Secretary Alejandro Miworcis was an eagle

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<v Speaker 7>pass taxes to meet with elected leaders and border patrol

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<v Speaker 7>agents at the southern US border. Now, he says it's

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<v Speaker 7>too early to tell if the significant drop in border

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<v Speaker 7>crossings over the past week is related to the holiday

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<v Speaker 7>season or stepped up enforcement operations in Mexico.

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<v Speaker 6>Our immigration system is outdated and broken and has been

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<v Speaker 6>in need of reform for literally decades.

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<v Speaker 11>On this, everyone agrees.

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<v Speaker 7>Arizona Senator Kirsten Cinema, an Independent who has been central

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<v Speaker 7>in negotiations, says she's not sure whether text is going

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<v Speaker 7>to be available, but she hopes there will be something

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<v Speaker 7>to present this week. House Republicans are pushing to impeach

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<v Speaker 7>ma Orcis. Senate Republicans want him to help cut a

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<v Speaker 7>border security deal. President Biden meanwhile moving to win back

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<v Speaker 7>black voters. Bloomberg's Nancy Lyons has more. On his trip

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<v Speaker 7>to South Carol'm not.

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<v Speaker 12>President Biden delivered remarks at Mother Emmanuel Ame Church in Charleston,

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<v Speaker 12>South Carolina, where white supremacist killed nine people in twenty fifteen.

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<v Speaker 12>Biden says our country must deal with racism.

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<v Speaker 2>It is is a poison throughout our history, driptestination apart,

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<v Speaker 2>he says no twice in America, not today tomorrow.

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<v Speaker 12>Ever, Biden's favorability among black voters in seven swing states

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<v Speaker 12>has slipped seven percentage points since October to sixty one

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<v Speaker 12>percent in December. That's according to a Bloomberg News Morning

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<v Speaker 12>Consult poll in Washington. Nancy lyons Bloomberg Radio.

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<v Speaker 7>Now, former President Trump wants his supporters to give him

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<v Speaker 7>a definitive win in Iowa, even with a commanding leading

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<v Speaker 7>the polls with less than a week before the caucuses.

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<v Speaker 7>Trump's stressed turnout, the.

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<v Speaker 13>People of this state are going to cast the most

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<v Speaker 13>important vote of your entire lives.

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<v Speaker 11>I believe that too very much. I used to say

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<v Speaker 11>that twenty sixteen.

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<v Speaker 13>And I believed it then, and now I believe this

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<v Speaker 13>is even much more important.

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<v Speaker 7>The Trump campaign believes a decisive iow of victory would

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<v Speaker 7>put pressure on his GOP rivals to drop out. Florida

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<v Speaker 7>Governor Ron DeSantis and former South Carolina Governor Nikki Haley

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<v Speaker 7>have failed to gain much significant ground in the Iowa

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<v Speaker 7>polls against Trump. Next up New Hampshire January twenty third.

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<v Speaker 7>That's where Nicki Haley has been gaining more momentum while

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<v Speaker 7>still trailing Trump. Global news twenty four hours a day

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<v Speaker 7>and whenever you want it with Bloomberg News Now. I'm

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<v Speaker 7>Amy Morris and this is Bloomberg Karen.

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<v Speaker 4>Right, Nimi. Thank you. We to bring you news throughout

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<v Speaker 4>the day here on Bloomberg Radio. But now you can

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<v Speaker 4>get the latest news on demand whenever you want it.

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<v Speaker 4>Subscribe to Bloomberg News Now to get the latest headlines

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<v Speaker 4>of the click of a button, get informed on your schedule.

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<v Speaker 4>You can listen and subscribe to Bloomberg News Now on

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<v Speaker 4>the Bloomberg Business app, Bloomberg dot Com plus apples, Spotify,

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<v Speaker 4>and anywhere else you get your podcasts. Time now for

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<v Speaker 4>the Bloomberg Sports Update. Here's John stash Hour John.

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<v Speaker 13>Darren the Michigan Wolverines national champions in college footwaally in Houston.

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<v Speaker 13>They beat Washington thirty four to thirteen. It was a

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<v Speaker 13>quick start for Michigan. First two possessions were both Donovan

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<v Speaker 13>Edwards touchdown runs.

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<v Speaker 11>They covered forty one and forty three yards.

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<v Speaker 13>Michigan didn't get into the end zone again until the

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<v Speaker 13>fourth quarter.

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<v Speaker 11>Blake Krum scored.

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<v Speaker 13>Capping a seventy one yard drive and later Corum scored again,

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<v Speaker 13>coming after Mike Stanrsill's eighty one yard interception return. Washington

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<v Speaker 13>star quarterback Michael Pennix junior twenty seven of fifty one,

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<v Speaker 13>did have two interceptions. Michigan goes fifteen to zero, wins

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<v Speaker 13>the national title for the first time since nineteen ninety seven,

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<v Speaker 13>and the question now is if Jim Harbar returns as coach.

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<v Speaker 11>Our heads back to the NFL.

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<v Speaker 13>The Washington Commanders looking for a new coach after they

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<v Speaker 13>had the second worst record in the NFL. They've got

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<v Speaker 13>new ownership and Ron Rivera fired after four years on

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<v Speaker 13>the job. Carolina Panthers already knew they were looking for

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<v Speaker 13>a new coach now at GM as well as the

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<v Speaker 13>Panthers fired to the manager Scott Fitterer.

0:09:55.679 --> 0:09:56.880
<v Speaker 11>Celtics got forty.

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<v Speaker 13>Points from Jalen Brown but lost at Indiana won thirty

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<v Speaker 13>three one thirty one. The Pacers lost their star player

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<v Speaker 13>Tyrese Halliburton a hamstring injuries, headed for an MRI John

0:10:06.880 --> 0:10:10.760
<v Speaker 13>Moran is headed for a season ending shoulder surgery. Memphisis

0:10:10.800 --> 0:10:13.240
<v Speaker 13>star guard was suspended for the first twenty five games

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<v Speaker 13>of the season and ends up only playing nine games.

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<v Speaker 13>On the year Wizard's thirtieth loss of the year, beaten

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<v Speaker 13>by Oklahoma City one thirty six to one twenty eight.

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<v Speaker 13>The Bruins lost at Colorado four to three in a shootout.

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<v Speaker 11>John Stashedward Bloomberg Sports.

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<v Speaker 14>From coast to coast, from New York to San Francisco,

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<v Speaker 14>Boston to Washington, DC, nationwide on SIRISXAM, the Bloomberg Business

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<v Speaker 14>Appen Bloomberg dot Com.

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<v Speaker 11>This is Bloomberg Daybreak. Good morning. I'm Nathan Hager.

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<v Speaker 3>Boeing is working to get at seven thirty seven Max

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<v Speaker 3>nine jets back in the air after the FAA ordered

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<v Speaker 3>them temporarily grounded following last week's door panel blowout. But

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<v Speaker 3>the investigation into the cash cow for Boeing is finding

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<v Speaker 3>more installation issues, maybe than just the ones on that

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<v Speaker 3>Alaska Airlines spore from where we're joined now by Bloomberg

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<v Speaker 3>News Global Aviation head Benedict Cammell. Thanks for being here, Benedict.

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<v Speaker 3>Get us caught up on the investigation so far.

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<v Speaker 9>Good morning. So we heard from the NTSB again yesterday.

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<v Speaker 9>They're holding daily press briefings to give the latest update,

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<v Speaker 9>and what we heard yesterday is that indeed they are

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<v Speaker 9>still focused on this particular Alaska aircraft, but they've said

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<v Speaker 9>that they might well be looking more deeply at other

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<v Speaker 9>aircraft broadly, more broadly than just the seven three to

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<v Speaker 9>seven Max nine. Right now, the focus remains very much

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<v Speaker 9>on that door panel, on that plug as they call it,

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<v Speaker 9>that came flying out, and they're trying to determine what

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<v Speaker 9>exactly caused that component to come loose. One thing that

0:11:47.120 --> 0:11:50.000
<v Speaker 9>they did say was they are focused intensely on the

0:11:50.080 --> 0:11:54.040
<v Speaker 9>bolts that are sort of fixing that particular component. And

0:11:54.240 --> 0:11:58.560
<v Speaker 9>speaking of bolts, we have heard from United Air and

0:11:58.600 --> 0:12:02.880
<v Speaker 9>from Alaska that they've found some loose bolts on their aircraft,

0:12:02.920 --> 0:12:06.280
<v Speaker 9>So obviously that's sort of the area around which the

0:12:06.280 --> 0:12:07.920
<v Speaker 9>investigation has focused right now.

0:12:08.320 --> 0:12:11.280
<v Speaker 3>How unusual is it to see these signs of improper

0:12:11.360 --> 0:12:14.320
<v Speaker 3>tightening on an aircraft like this? Is this part of

0:12:14.360 --> 0:12:19.199
<v Speaker 3>the reason why we're getting these suggestions that the investigation

0:12:19.280 --> 0:12:20.840
<v Speaker 3>could go beyond the Max nine.

0:12:21.679 --> 0:12:24.280
<v Speaker 9>Absolutely, and this is obviously something you don't want to

0:12:24.280 --> 0:12:26.680
<v Speaker 9>find on an aircraft, but sadly it's something that they

0:12:26.720 --> 0:12:29.320
<v Speaker 9>have found, not just in this case, but also in

0:12:29.400 --> 0:12:34.280
<v Speaker 9>previous sort of investigations where they looked at improper manufacturing.

0:12:34.600 --> 0:12:38.520
<v Speaker 9>We had a misaligned drilling holes on some seven three

0:12:38.559 --> 0:12:41.000
<v Speaker 9>sevens last year. Then we had some loose bolts in

0:12:41.040 --> 0:12:44.640
<v Speaker 9>another part of a plane. So these defects appear to

0:12:44.760 --> 0:12:47.440
<v Speaker 9>come up again and again. And you have to remember

0:12:47.679 --> 0:12:50.200
<v Speaker 9>the Max, the seven three seven Max has a very

0:12:50.280 --> 0:12:54.120
<v Speaker 9>sort of fragile reputation after these two crashes that happened

0:12:54.120 --> 0:12:55.079
<v Speaker 9>almost five years ago.

0:12:55.120 --> 0:12:56.120
<v Speaker 11>A lot of people.

0:12:56.200 --> 0:13:00.559
<v Speaker 9>Still somewhat squeamish about that aircraft and an abbus not abus.

0:13:00.640 --> 0:13:06.040
<v Speaker 9>Boeing have managed to repair that reputation, but somewhat fragilely.

0:13:06.520 --> 0:13:10.520
<v Speaker 9>And the question now is will that pull them back

0:13:10.640 --> 0:13:13.160
<v Speaker 9>into a hole? How can they emerge from that? Those

0:13:13.160 --> 0:13:14.679
<v Speaker 9>are a lot of things they're trying to work through

0:13:14.760 --> 0:13:15.120
<v Speaker 9>right now.

0:13:15.280 --> 0:13:18.080
<v Speaker 3>Yeah, it raises the question about whether Boeing could be

0:13:18.160 --> 0:13:22.440
<v Speaker 3>running into a crisis of confidence with flyers. Is that

0:13:22.480 --> 0:13:24.240
<v Speaker 3>the concern for Boeing, That.

0:13:24.280 --> 0:13:26.040
<v Speaker 9>Is very much the concern. I mean, we've seen the

0:13:26.040 --> 0:13:28.559
<v Speaker 9>crisis of confidence on the side of the investors. If

0:13:28.600 --> 0:13:30.559
<v Speaker 9>you look at what happened with the stock yesterday took

0:13:30.559 --> 0:13:34.240
<v Speaker 9>a deep tumble. Spirit Aerosystems, that's the company that makes

0:13:34.280 --> 0:13:36.680
<v Speaker 9>the fuselage for the seven three seven is by an

0:13:36.880 --> 0:13:40.800
<v Speaker 9>is by far Boeing's most important supplier. They also dropped

0:13:40.840 --> 0:13:44.240
<v Speaker 9>quite sharply yesterday, so there is a real crisis in confidence.

0:13:44.440 --> 0:13:47.680
<v Speaker 9>For the time being, it's the focus is very much

0:13:47.720 --> 0:13:50.120
<v Speaker 9>sort of on the investor side, on the financial side.

0:13:50.280 --> 0:13:54.400
<v Speaker 9>But if this spreads into a bigger crisis, say the flyers,

0:13:54.480 --> 0:13:58.000
<v Speaker 9>the flying public, and then the customers ultimately, that will

0:13:58.000 --> 0:14:01.080
<v Speaker 9>obviously be something very hard for Boeing to get back from.

0:14:01.280 --> 0:14:03.480
<v Speaker 9>This had been the year, or supposed to be the

0:14:03.559 --> 0:14:06.480
<v Speaker 9>year of the great comeback of Boeing. They they've had

0:14:06.520 --> 0:14:09.360
<v Speaker 9>a couple of difficult years, as I said, but they'd

0:14:09.440 --> 0:14:12.720
<v Speaker 9>managed to get their manufacturing back in order. The orders

0:14:12.720 --> 0:14:16.240
<v Speaker 9>and deliveries are back, they'd planned to really increase the

0:14:16.280 --> 0:14:18.640
<v Speaker 9>output rate of the seven three seven. All of these

0:14:18.679 --> 0:14:21.600
<v Speaker 9>things were sort of what lay ahead for them for

0:14:21.680 --> 0:14:24.680
<v Speaker 9>this year, and right now it looks as if things

0:14:24.720 --> 0:14:28.160
<v Speaker 9>will certainly slow down for them quite a bit. The FAA,

0:14:28.520 --> 0:14:31.560
<v Speaker 9>which is the regulator in the US, they're saying, not

0:14:31.680 --> 0:14:33.840
<v Speaker 9>so fast. We want to make sure this plane is

0:14:33.880 --> 0:14:36.640
<v Speaker 9>ready to fly again before we can unground it, and

0:14:37.000 --> 0:14:38.920
<v Speaker 9>Boeing has to sort of comply with that.

0:14:39.400 --> 0:14:42.080
<v Speaker 3>Is this something that could put the relationship between Boeing

0:14:42.120 --> 0:14:45.760
<v Speaker 3>and Spirit Aerosystems in jeopardy. I mean, where could the

0:14:45.840 --> 0:14:48.640
<v Speaker 3>blame potentially lie for this? Got about a minute left.

0:14:49.440 --> 0:14:52.760
<v Speaker 9>It's a difficult relationship that these two companies have. Spirit

0:14:52.880 --> 0:14:55.360
<v Speaker 9>used to be part of Boeing. Then it will spun out,

0:14:55.440 --> 0:14:57.600
<v Speaker 9>but they're still very much sort of entwined, and they're

0:14:57.680 --> 0:15:01.560
<v Speaker 9>locked in a slightly unhappy marriage here. They obviously Boeing

0:15:01.600 --> 0:15:04.680
<v Speaker 9>needs to have very close quality controls at Spirit to

0:15:04.760 --> 0:15:06.880
<v Speaker 9>make sure that the products that get shipped over to

0:15:06.920 --> 0:15:10.200
<v Speaker 9>Boeing meet their standards, and that's something that hasn't always

0:15:10.200 --> 0:15:12.360
<v Speaker 9>been the case in the past. So Boeing really needs

0:15:12.360 --> 0:15:15.400
<v Speaker 9>to tighten the screws, as it were, on Spirit and

0:15:15.480 --> 0:15:17.680
<v Speaker 9>make sure that they have the right people there, they

0:15:17.720 --> 0:15:20.840
<v Speaker 9>have the right controls. There's new management at that company.

0:15:21.160 --> 0:15:24.040
<v Speaker 9>Ultimately the buck stops with Boeing. They need to have

0:15:24.080 --> 0:15:25.960
<v Speaker 9>the final sign off on the plane. So sure, you

0:15:26.000 --> 0:15:28.520
<v Speaker 9>can blame Spirit and point your finger as much as

0:15:28.520 --> 0:15:31.320
<v Speaker 9>you want at them, but the plane is ultimately sold

0:15:31.360 --> 0:15:33.560
<v Speaker 9>by Boeing, so they need to make sure that their

0:15:33.560 --> 0:15:35.800
<v Speaker 9>network is up to snuff.

0:15:37.600 --> 0:15:40.680
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