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

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Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters.

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Speaker 1: I'm Charlie Pelletta Dal the SMP, NAZ dank Hall advancing

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Speaker 1: UK citizens voting today and a referendum on the country's

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Speaker 1: membership in the European Union. UK law preventing us from

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Speaker 1: reporting on voting or discussion and analysis of referendum issues

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Speaker 1: while polls are open, but we will be following all

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Speaker 1: the action as the results come in on a day

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Speaker 1: here of special coverage. Stocks higher SMP five hundred index

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Speaker 1: heading towards the strongest gain in a month, up twenty

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Speaker 1: points now one o five on the SMP five hundred index,

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Speaker 1: up by one percent down. Industrial is up one percent

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Speaker 1: to one seventeen thousand, nine hundred fifty three, gaining one

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Speaker 1: hundred seventy three points. Nas stank up fifty seven forty

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Speaker 1: eight ninety want to gain there of one point two

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Speaker 1: percent the ten you're down fourteen thirty seconds with the

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Speaker 1: yield of one point seven gold down five ninety ms

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Speaker 1: to twelve sixty three a drop. There are four tenths

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Speaker 1: of one percent. West Texas Intermediate Crew now fifty ten

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Speaker 1: A barrel hired today by two. I'm Charlie Paddle. That's

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Speaker 1: a Bloomberg business flash. You're listening to taking stock with

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Speaker 1: pim Box and Kathleen Hayes on Bloomberg Radio taking a

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Speaker 1: look at a BlackBerry missing its sales estimates today after

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Speaker 1: is shrinking smartphone sales and an inventory right down overshadowed

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Speaker 1: a welcome boost in software revenue. Is BlackBerry winning the

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Speaker 1: battle to raise its brand, raise its size, raise its profile,

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Speaker 1: or just sort of standing in place of falling behind.

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Speaker 1: John Butler is here, senior Telecom Services and Equipment analysts

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Speaker 1: for Bloomberg Intelligence, a unique real time research and UH

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Speaker 1: provider of context on industries and all the marketing government

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Speaker 1: factors that impact business. Would you can find if you're

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Speaker 1: a terminal customer with this function b I go, So,

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Speaker 1: John Butler, you go and tell us about the report,

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Speaker 1: the pluses the minuses. Market doesn't like it too much. Well,

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Speaker 1: the market's a little has been a little mixed on BlackBerry.

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Speaker 1: It's actually upright now as I look at it. But

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Speaker 1: what they're doing, right, Kathleen, is they're getting through a

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Speaker 1: transition from being a hardware vendor to a software provider,

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Speaker 1: and they're doing it under the stewardship of a CEO

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Speaker 1: who has been there a couple of years, John Chen,

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Speaker 1: who comes out of the software industry, and what BlackBerry

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Speaker 1: really does quite well as they offer very good mobile

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Speaker 1: security software and they have enterprise mobile management software. So

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Speaker 1: when companies need to manage all these mobile devices in

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Speaker 1: the field, uh, and they need to control access and

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Speaker 1: keep that access secure, and that's one thing that BlackBerry

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Speaker 1: does very well. And Chen has been very focused on

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Speaker 1: growing that element of the business because it's very high margin.

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Speaker 1: And as we all know, the handset franchise has really

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Speaker 1: been suffering. And you know that's I was thinking this

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Speaker 1: the other day. I can't remember a single handset vendor

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Speaker 1: that has recovered from this kind of disastrous fall. You know, No,

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Speaker 1: Kia didn't recover, Motorola didn't recover. Now we're looking at

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Speaker 1: BlackBerry struggling but not recovering. So you know, I think

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Speaker 1: Chen looks at the business and sees that and says,

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Speaker 1: you know, it's a hit driven business. I've come out

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Speaker 1: with one handset after another and I'm not getting what

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Speaker 1: I want. So he's looking to software. As you said, John,

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Speaker 1: the shares of black bearry that up about four percent today,

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Speaker 1: they are down more than twenty four percent year to date.

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Speaker 1: John chen saying today that if I shut down the

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Speaker 1: hardware business, I lose the revenue, probably make the margin

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Speaker 1: a lot better, but I'm going to lose the connection

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Speaker 1: with those customers. He's referring to those enterprise and government

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Speaker 1: clients I guess who want that secure hardware component as

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Speaker 1: part of a complete solution. Is he really going to

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Speaker 1: be able to juggle the hardware and the software to

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Speaker 1: the point where one actually produces revenue that is going

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Speaker 1: to make the company successful. Well, there are cross selling opportunities.

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Speaker 1: I have to give him credit were credits due. They've

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Speaker 1: tried to capitalize on that, and Bloomberg is a great

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Speaker 1: example where at least in the past, the company has

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Speaker 1: given Blackberries to the salesforce and other people that are

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Speaker 1: on the road. And so if you've already got that

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Speaker 1: customer relationship, why not go into the decision makers and say,

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Speaker 1: by the way, we offer really great enterprise software to

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Speaker 1: help manage those people in the field or those devices

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Speaker 1: in the field. Keep your network nice and secure and

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Speaker 1: help you U control access to the network and keep

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Speaker 1: your data safe. And so again, I think having the

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Speaker 1: devices out there as sort of to lead into a

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Speaker 1: sale or just the opposite. If you've got a software

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Speaker 1: account and they're buying handsets for their people, why wouldn't

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Speaker 1: you want them to be Blackberries? And so again you

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Speaker 1: have access to those decision makers. So they're complementary businesses

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Speaker 1: in that sense, and I think that's really what he's

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Speaker 1: getting at their Can they live without devices? Sure? I

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Speaker 1: mean I think they're doing well in software. We saw

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Speaker 1: over growth there with this past quarter, and I expect

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Speaker 1: that to keep up. So um, I think they're okay

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Speaker 1: with that. Thank you very much for spending time with us.

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Speaker 1: John Butler joins us that he's the senior Telecom's analyst

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Speaker 1: for Bloomberg Intelligence, and of course, Bloomberg Intelligence provides a

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Speaker 1: unique real time research on a variety of industries and

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Speaker 1: all marketing government factors that affect business. Our terminal customers

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Speaker 1: can access this function by just typing b I go

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Speaker 1: on the Bloomberg. Now we turn our attention to Washington, Georgia.

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Speaker 1: Representative John Lewis, the Democrat, declared a victory as he

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Speaker 1: and other Democrats staged a revolt in the House of

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Speaker 1: Representatives over gun policy reform, and they suspended their nearly

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Speaker 1: twenty six hour sit in in the capital. Here to

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Speaker 1: tell us more is Craig Gordon. He is managing editor

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Speaker 1: for Bloomberg News in Washington, d C. Craig, thank you

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Speaker 1: very much for spending time with us. Did the twenty

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Speaker 1: six hour sit in accomplish anything other than bringing this

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Speaker 1: to everybody's attention, Well, that is what they were trying

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Speaker 1: to accomplish, was bringing it to everyone's attention. Um. I

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Speaker 1: actually do think it's made a bit of an uncomfortable

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Speaker 1: situation for the House Speaker, Paul Ryan, who for the

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Speaker 1: past two days has really stood stood his ground and said,

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Speaker 1: you know, I'm not going to give them. So essentially

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Speaker 1: they held us it in to try to get a

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Speaker 1: vote on the gun control other measure that would keep

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Speaker 1: guns out of the hands on people, the no fly list.

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Speaker 1: Paul Ryan has said he doesn't think their support for

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Speaker 1: that constitutional reasons he shouldn't do it, and so for

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Speaker 1: two days he sort of stood his ground. But meanwhile,

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Speaker 1: on the other side of the Capitol, the Senate just

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Speaker 1: did take some votes on some gun control measures from

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Speaker 1: Susan Collins. Those did also fail. But Ryan right now

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Speaker 1: is a little bit, a little bit lonely out there.

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Speaker 1: He's really the guy standing between the U. S. House

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Speaker 1: representatives and a vote on gun control at a moment

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Speaker 1: when the polls show the public actually does think maybe

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Speaker 1: it's time to do something to crack down on the

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Speaker 1: availability of guns. You know, Craig from the the lofty

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Speaker 1: position of down here or I should stay up here

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Speaker 1: from Washington Sea in New York. Uh. And following this,

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Speaker 1: this uh, the gun control debate and the various votes,

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Speaker 1: it was to me it looked it looked like there

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Speaker 1: was the potentially common ground if both sides were would

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Speaker 1: agree that, you know, you don't want no fly potential

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Speaker 1: terrorists to have guns. You know, you can lengthen the

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Speaker 1: amount of time, don't let them by guns at gun shows,

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Speaker 1: all these things. Is uh, as objectively as you can,

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Speaker 1: Why have the Republicans, for example, opposed with the Democrats

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Speaker 1: are proposing because it seems this would have been right

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Speaker 1: for compromise from the two of them. Sure, I mean, look,

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Speaker 1: there's sort of the The easy answer would to just

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Speaker 1: be saying that the National Rifle Association. The n r

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Speaker 1: A has this you know, iron grip on Republicans, UH,

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Speaker 1: through donations and through contributions and through their supporters and voters.

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Speaker 1: I think that's I think that's unfair to all involved. Um,

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Speaker 1: there's some truth to that. Obviously, it's a very powerful lobby,

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Speaker 1: and a lot of Republicans listen to the n r A.

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Speaker 1: But look, these are folks who are I think I

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Speaker 1: could fairly characterize the Republican position is saying they are

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Speaker 1: nervous about sort of letting the camel zones under the tent,

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Speaker 1: where if you banned guns for this group of people,

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Speaker 1: well then next time you maybe another group, in another group,

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Speaker 1: in another group, and pretty soon you know that it's

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Speaker 1: a lot of people. I do think where the Democrats

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Speaker 1: have a little bit of moral high ground right here

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Speaker 1: is that this has actually become less a Second Amendment

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Speaker 1: conversation and more a terrorism conversation. And we've written about

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Speaker 1: this and some of our stories where it's one thing

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Speaker 1: to say, you know, the Second Amendment says I've a

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Speaker 1: right to keep him bear arms. But I think a

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Speaker 1: lot of Americans, Republicans, Democrats, independents would say yeah, But

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Speaker 1: I'm not sure I want omar mateam to the guy

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Speaker 1: who accused, you know, on the Orderlando shooting, to own

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Speaker 1: a weapon. I do think that has shifted the conversation

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Speaker 1: just a little bit in Washington, and I think we

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Speaker 1: saw it in the Senate today. Susan Collins, senator from Maine,

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Speaker 1: had had a sort of a modified no fly band.

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Speaker 1: She got about fifty two votes on that. I'm not

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Speaker 1: sure she would have gotten that pre Orlando. And if

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Speaker 1: you get fifty two, maybe you can you can build

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Speaker 1: up from there. So I do think the Republicans believe

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Speaker 1: there is it is a constitutional right and shrine right

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Speaker 1: there in the Second Amendment, and they're gonna stand by it.

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Speaker 1: I think it's getting to be a little bit of

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Speaker 1: a harder political position for them to stick with Craig

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Speaker 1: just quickly. I understand that the GOP leadership asked that

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Speaker 1: the c SPAN cameras that normally broadcast from the House

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Speaker 1: be turned off, But yet many of the Democrats used

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Speaker 1: the video streaming at Periscope and they shared that footage

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Speaker 1: of this sit in and it went viral. It really

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Speaker 1: was a remarkable moment. Again, whatever your politics are on

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Speaker 1: the issue of guns, or whatnot. It really was something.

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Speaker 1: It is true the House representatives, the leadership controls the

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Speaker 1: cameras for c SPAN. They're sort of there at the

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Speaker 1: permission of the House and they shut them down. So

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Speaker 1: these some of these clever members fired up their phone

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Speaker 1: apps and the head periscope and Facebook live going, and

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Speaker 1: we're able to get those signals back out to c SPAN.

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Speaker 1: There's a lot of us, Look, I'm a journalist, so

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Speaker 1: I'm a First Amendment guy. The more information the better.

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Speaker 1: A lot of us are conchery on se Spanned that

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Speaker 1: they were able to get the signal out and around

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Speaker 1: the objections of the House leaders. So it was a

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Speaker 1: really a remarkable moment, and it also brought people into

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Speaker 1: the chamber of the House, whether it really except for

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Speaker 1: the c SPAN camera, you're not really allowed to film

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Speaker 1: in a kind of remarkable way. That's incredibly intimate sort

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Speaker 1: of setting of the Senate of these a House members

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Speaker 1: talking back and forth. So again, whatever your politics are

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Speaker 1: on guns, it was a pretty remarkable moment in American democracy,

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Speaker 1: and it was quite something to be to be covering

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Speaker 1: Craig ten seconds the bloom Brick Business Week sit down

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Speaker 1: with President Obama, the anti business president, who's been good

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Speaker 1: for business? That's the headline. Just quickly, what's the highlight,

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Speaker 1: what's Look. If you want to know what Barack Obama

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Speaker 1: thinks about the U. S. Economy and the responsibility of

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Speaker 1: businesses and of the financial sector and Wall Street in it,

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Speaker 1: read this interview. I think he lays it out in

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Speaker 1: enormously granular detail. Again, whatever you think of his positions,

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Speaker 1: agree or disagree, you will know what Barack Obama thinks,

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Speaker 1: and what he thinks is basically, these business and you

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Speaker 1: do a little bit more to help raise wages. That

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Speaker 1: would sum it up. Craig Gordon sums it up so well,

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Speaker 1: Managing editor, Bloomberg News, Washington, d C. This is taking

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Speaker 1: stock on Bloomberg Radio.