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kinds. you can have mallard ducks. there are different flavors of ducks. corporate said bskyb. --corporate and bskyb. >> a lot of moving parts. they added 74,000 subscribers. to find competition for bt. defying analyst. they did have a little bit of profit erosion cuts costs are up. that hurt revenues. as you can see, investors very happy right there, because there were a lot of analysts that were saying for the first time in 15 years, since they basically got in the pay-tv game, we were going to see a drop in sky tv viewers, and we did not. >> bskyb gaining five percent in today's trading session. one of the few stocks that is open. hans, you are following m&a and prints -- and sprint's possible bid for t-mobile. >> they are talking to bankers and want to get their financing lined up to take over t-mobile u.s. they need regulatory approval. the it if the fcc and in u.s. department of justice. we will break that down in 10 minutes. >> hans, thank you. i am looking forward to that conversation. manus, we have the fed to watch out for, although it did not give as much news. we are watching for bskyb and m&a and lloyds, as well. >> this is one of the biggest mortgage lenders in the united kingdom, getting ready to go to ask for permission to start paying dividends. that is a very unique event in a british quasi-nationalize banks. costs are down. what you are earning in lending is doing better. they areg line, running a simple, low risk business. they must be absolutely having a hoedown at treasury this morning to see a line like that, quasi-nationalized bank. >> what else are we watching? >> the chinese data, the pmi missed. go behind the headline numbers and you begin to see export numbers under pressure. all the regions missing targets. the imf deal was well flagged but it will come down to the u.s. data later on today. jobless claims, personal spending. along with that, you have the sim dat -- the ism data. let's look at the stocks that are trading. lloyds beats on profitability up 22%. looking for permission to begin paying dividends in the second half of 2014. looking at that. bskyb up 3.64%, coming off the top of its range. new subscribers is what is driving the numbers. 1/8th, is the ftse 100. the rest of europe on vacation today. national day. there are the u.s. teachers. a raft of data coming out of the united states. the jobless numbers. record yesterday. personal spending. what is the consumer spending? purchase managers index expected later on. is the technology over and done with? on nasdaq futures at the moment. there was an interesting move in currency markets as we ran up to the official opening time. the dollar drop is continuing the overall move. dramatic overore two days. what you did see was a little bit of a pop in the euro. i will show you one day view, because i think it makes for slightly more interesting reading. popping higher. this 1.39 seems to be important. i think they want to take it up to 1.40. what to traders want to do? they want to test the mettle and the resilience or the inertia. there is the word. >> manus cranny with the latest on the markets. a reminder, a lot of the indices are closed. the ftse is gaining .2%. one of the few ones open in europe. joining us for the next half-hour with market perspectives on the big themes of the month, the global chief 345stor where he oversees billion euros in investment. thank you for coming in. is there too much complacency on the markets? we are worried about china and a little bit worried about deflation. the fed is the smoothest transition. we are worried about russia, and yet, the markets are brushing everything off. >> that is right. that is not so much complacency. people are concerned about a lot of things. there are a lot of headwinds out there. simply, we have seen the central banks have maneuvered the markets into believing there is a put out there. every pullback is seen as an opportunity. >> what happens with the ecb? with the ecb, we arrived at what the limit of the central banks can do. japan is aggressive. the fed has been aggressive. the ecb has a japanese problem. >> that's right. they would like inflation to be higher. they'd like growth to be higher. we heard earlier on the show the eurozone is putting up the pressure on the euro. so i think there is a conundrum there. i think the markets are doing what they did three or four years ago with the pressure on the sovereign spreads. they are almost willing, the ecb, to act. >> what is your best bet for the next couple quarters? >> i thi nnk i was to remain log risk assets. that can be obviously equities. we have been talking about dividends for years. we still feel that is the best bet for the next couple of quarters, but also longer-term. i also think, and i think i was on the show last time when we had a bit of a crisis in the emerging market. we think there is a lot of value there in that market. these currencies, according to our and the imf's valuations, are undervalued. the question needs to be asked -- why are some of these emerging market sovereigns trading six times higher than the ecb sovereigns? >> last time you mentioned mexican. the fact that you need to country pick. i will ask you that after this break. he stays with us. here's a look at what else is coming up on "on the move." wishful thinking. italy's finance minister tells us an exquisite interview that he welcomes a softer euro, but does not see depreciation on the horizon. sprint lines of financing for the mega deal of extremes. will regulators let it happen? and we look at lloyds making a comeback. ♪ >> welcome back. i'm francine lacqua in london. streamingn the move," online, on your phone on apple tv on on amazon fire tv. this is a stock on the move. it is bskyb. our reporter ryan chilcote is on top of that story. gaining 4%. a reminder that there are a lot of indices closed in today's trading session. some ofpressing with the figures, especially in terms of advertising revenue advancing gaining-- four adds, 6.6% as there have been more tv subscriptions. that is one of the biggest gainers today. on to m&a, sprint is said to be planning a bid for t-mobile after meeting with banks to look into financing. let's get more from our international correspondent hans nichols in berlin. hans, talks was a little bit about timing. how far along are they and when might we see a deal? >> well, we might see a deal announced or formal bid in june or july, francine. what they want to do is make sure they have the financing. this is sprint executives backed by softbank. sprint.s owns 80% of they want to make sure they have the financing lined up so if they get regulatory approval than they can do the deal rather quickly. these are sprint executives, they met with six banks. remember all of the subject to huge regulatory hurdles. at&t tried to by the u.s. arm of t-mobile. t-mobile is the fourth-largest carrier in the state. it is owned by deutsche telekom in germany. it is a separate company in the states. when at&t try to buy it. wall street thought it would go through. it was price in. and the regulator said no. softbank need to get regulatory approval. the need to make the case this will not harm consumers. it will give consumers more options. >> so hans, who might run the company? >> john leger. the leading candidate. he is the current ceo and president of t-mobile usa. he is the leading candidate. deutsche telekom and softbank are talking about potential names. this is not a done deal. john leger a colorful figure. we have colors of him -- p ictures of him crashing and at&t consumer electronic show. if he's head of this new company, maybe he can get into mclemore parties by by himself. >> you see him with the pink t-shirt. hans nichols with the very latest possible merger. still with us for more of his views on the markets, the global seed investment officer -- global investment officer. before the break, we were talking about what you like in the markets. you are quite keen on risk assets. and you mentioned emerging markets. let's talk about m&a. is this a sign that we have more synergy or is there a sign that there is a lot more optimism. that real ceo's see real value and want to put their cash in? >> you are absolutely right. what we are seeing currently, across all sectors, we are seeing increased interest in m&a. we're seeing it inth the pharma and -- there is liquidity in the markets. driven by the central bank policy framework. we are seeing record share bu ybacks. and the financing conditions for m&a activity are perfect. the other part of the story, and that is what we see in the earnings numbers over the past 18 months, topline growth in today's financially repressed world is still very hard to come by. that is why companies are trying to take the shortcut via m&a. focusing their operations. that is the main motivation between the siemens intervention in the ge takeover battle is to become bigger and more significant, possibly dominant players and shedding other parts of non-core businesses. that is the thinking behind buyers discussions around their nonfarm businesses. pharma businesses. >> yesterday i caught up with the italian finance minister. we talked about the strength of the euro. he is concerned that it is unlikely we will see a weaker euro. >> i would really welcome a softer euro, a bit lower euro. but this is different than the exchange dynamics in the short-term. minister padoan do you see it happening? >> of course you would. what is happened in the european periphery is what everybody, three or four years ago when the euro crisis was at its highest, said cannot happen. they have internally devalued. that is nominal price pressure downward pressure on wages. what we've seen is that there has been a reduction in disparity of the differential of competitiveness between germany and the core countries and the periphery. the peripheral countries would like some relief. that is where the weaker euro comes in. in the short term it will be difficult for the euro to weka aken. and the ecb, of all of the central banks, despite all of their loose monetary policy, are still not as aggressive in terms of quantitative easing as the bank of japan and the fed continues to be. therefore, i think the markets are willing, the ecb, are willing, can do they more? if the growth continues to be less than the u.s., then they could we can the -- weaken the euro. there is not political consensus around the. that is a dangerous game. i need to see inflation fall even lower so that even within germany, and some of the core countries, it moves in favor of the north. >> it is interesting because the finance minister were saying he is worried that because the markets are doing pretty well there is a little bit of complacency amongst politicians to push through the reforms. >> that is always going to be the risk. we are seeing it with japan. concerns arising there. we are also seeing it in italy. >> china. this is the big unknown. how much attention should we pay to china? does that make a difference if it is growing at 6.5% or 7.5%? everybody is assuming these figures are not completely true but there seems to be a elite politicians have the situation in hand. >> that is our starting condition as well. china is copied between a rock and the hard plate. tothe one hand, they do need grow the economy in the region of seven percent or eight percent. on the other hand, the tools they give themselves to achieve that also stoke issues in the property and banking sectors. that is where the somewhat weaker run in the -- renminmi comes in. we think they are on the right track. >> so you are not worried about it. are you looking out for certain signs that it may actually turn? >> clearly, if the bank is situation worsens, that's obviously a key sign. we are very, very much in favor of the reforms the current leadership is putting in place to reform the shape of the economy to rebalance towards the consumer sector. that is something we're looking at carefully. >> thank you so much for not. andreas utterman. he stays with us and we will talk about emerging markets next. coming up, lloyds delivers a profits boost. but how close is the government to selling its stake? ♪ >> welcome back to "on the move ." i'm francine lacqua in london. here are some companies on the move. sony posted a net loss 18% larger than forecast on additional costs for its pc and disc making businesses. its net loss will be $1.3 billion compared with a projection in the very. -- in february. it is struggling to come up with new hits as demand for tv's has declined. acquiringans on channel five. viacomm will announce the deal with is earnings before the u.s. market opens today. owning channel five would further its international expansion by offering another english speaking outlet for its u.s. programming. bayer is one step closer to winning work's-- merck's consumer business. according to people familiar with the negotiations, merck may fetch more than $14 billion for the sale. in the second federal reserve meeting under new chairs janet yellen, the senate -- the central bank voted to keep trimming the asset purchases. theultiple probably hit snooze button yesterday around about the time the fed decision came out. -- most people probably hit the snooze button. no press conference. another taper of $10 billion trade nobody changes to the statement despite the dismal gdp number yesterday. they are overlooking the first quarter. they are chirping the weakness to weather and looking for a strong rebound this quarter -- they are attributing the weakness to whether. -- to weather. it is tomorrow's labor market data and focus. >> letter we expecting for the next meeting? -- what are we expecting for the next meeting? >> it would also have forecast. i am looking at the staffing issue at the federal reserve. it is meant to have seven governors. right now it has four. as jeremy stein leaves, we are set to be left with three. new governors have not been confirmed by the senate. the vote for that has not even been scheduled. this means a couple of things for policy. one, icad, kick the forecast because stein's forecast will drop out of the legislation. which could give the impression the fed has changed its view. thetwo, and may magnify view of regional fed president. we know fisher does not need much encouragement to get haw kish. >> thank you so much. jonathan ferro with the latest on the fed. still with us for a few final thoughts is andreas utterman. billion euros46 of assets. give me a sense of the impact on the fed on emerging markets. they are is still value to be made. -- there is still value to be made. >> the impact is clear. it is on the fund flows throughout 2013. dsd in february, 2014, fun being withdrawn from emerging markets. emerging risk markets, equities and bonds, they're relatively illiquid. it will have an disproportionate impact. that is an opportunity in my mind, given that there is long-term value there. better growth than any ecb world. it is better than the gdp ratios. that story will go on and on. as we said before, i prefer the debt to the equity assets. one has to be careful. the eastern european crisis is showing that one needs to be relatively discerning there, but in asia and latin america there are significant differences between markets. we like poland and indonesia, mexico and brazil. >> i was going to ask you about brazil, because there seems to be so much negative news coming on the country at the moment because there is so much focus on the world cup. is it a buying opportunity? investors are getting nervous. >> it probably is. it would not be my top choice but it probably is because so much is priced in in terms of the yield you are getting. you need to have a substantial depreciation and double-digit terms for you to lose the advance yield differential. >> you like poland, despite the fact that we are seeing the russia-ukraine standoff? >> if there is any disruption that is an opportunity because i do not think that nato is going to drop poland. >> thank you so much for coming on today. andreas utterman. now, as we had to break, the italian finance minister padoan says he would welcome a softer level of the euro but does not see strong depreciation on the horizon. we will bring you that interview coming up next. in the meantime, follow me on twitter. ♪ >> welcome back to "on the move ." i'm francine lacqua here in london. now, we are 30 minutes into the trading day. most european markets are closed for made it but the ftse is trading. you can see the ftse gaining .4%. we've seen a drop on precious metals. so that is giving a little bit of a boost to some of the other stocks. also watch out for bskyb, one of the top gainers. crannyranny -- manus is it the touchscreen. >> let's check in with vodafone. at&t may bid for directv. not allowed to bid for vodafone. salamander energy based in southeast asia but they have a few definite offers. they are thinking about selling some assets. stock up 12%. lloyds doing quite nicely. and margins drop improve. >> manus cranny with some of the three top stocks we are watching. berg'srd's -=- bloom top headlines. china's pmi came in at 50.4%. the reading underscores weakness in the world's economy from exports to construction. while numbers above 50 signal expansion. the international monetary fund has approved a $17 billion loan for ukraine that will extend over two years. that will help ukraine's short-term budget needs and open the country up for further aid. imf managing director christine lagarde says now is the time to act to keep ukraine from sinking further. >> we believe that ukraine has an opportunity to seize the moment, to break away from previous practices, both from a fiscal, from a monetary and from a governance point of view. >> now, the fed says it will continue to scale back stimulus as the u.s. economy continues to recover. the central bank is on track to end its asset purchases by the end of this year. it reiterated that interest rates will link -- will remain close to zero. italy's finance minister told us in an interview that challenges remain for the still fragile european economy. when it comes to mario draghi, padoan is in full support. >> mario draghi has taken up the risk of the break up of the year is him. this benefits all members, including italy. there is more to that. first of all, europe and italy are growing again, exiting their session. the challenge for italy is to make that growth, which is still fragile, much more consolidated and resilient over the medium-term. this is where italian policy comes in. we are now launching an ambitious structural reform program, including labor market reform, including institutional and tax reform. as well as measures to boost the economy short term so that we strengthen the recovery and we make it more sustainable over the medium term. >> any concerns about the italian banks? we had the stress test results. they need to be credible. will they be credible and willis tying bank pass? >> -- and will italian banks pass? >> they need to be credible. we need to be convinced and convinced that the italian and the european financial systems have been repaired or are about to be. as far as italian banks are concerned, let me know that italy has gone through two years of very deep recession. in spite of that, italian banks have proved to be highly resilient. yes, there are nonperforming loans, but banks are rebuilding their capital and i am convinced that in a short time they will again being in normal conditions -- again be in normal conditions to lend to the economy and support growth. >> there seems to be a lot more open talk from france that we need a lower euro. would help the european economy and would be more in line with fundamentals. and would take off some of the pressure towards deflation in europe. awever, one thing is to think lower euro is useful, which i fully share, the other thing is to think we can target the euro. this is not something i see as feasible. >> do you think about currencies? how do you explain the fact that euro has been so high? if the fed starts this program of less accommodative monetary policy, is it a subsequent, is a consequence that the dollar should go up? >> we tend to forget one fundamental element, that recently, the eurozone has turned into a large current account surplus situation. so that that adds to the strength of the euro. the fundamental variables driving currencies have to do with growth. and in this case higher growth in the u.s. would suggest a higher dollar rather than the "the railway ma euro. why is that not happening? this is a puzzle. there is no obvious reason to see the strong depreciation of the euro. as i said, i would welcome a softer euro. a bit lower euro. but this is different from the exchange dynamic short-term. >> that was italy's new finance minister padoan. and we will bring you more of that conversation at the top of the next hour on "the pulse." moving on to one of our top stories this morning. lloyd's released figures delivering a 22% rise in quarterly profit. manus cranny has been digging through the numbers. first of all, what is the key take away? down.airments are things are getting better at the quasi-nationalized banks. pairments have dropped by 57%. the amount of loans you are concerned about, costs are declining by 5%. the headline pretax number, the earnings of the bank, also rising and beating what we yought about minutia that have to deal with if you are a banking analyst which is net interest margin. they told us early in the year, it will be top earning money on what we hand out. it will be tough to make good margin. guiding higher for the year. it is getting better. it is a three-part story which is good news. if you're overdue, treasury or street, theyn the are running a simple, low risk business. music to the u.k. government's ears. the commoditization of banking. of banking.ing dividends. there we go back and asked to deliver dividends in the second half of the year. >> it is a very different position to rbs. >> phenomenally different. they took the time out due to i llness. sold assets and reduce headcount. he is getting ready to sell off the tsb brand. theknow, they are through restructuring to a greater or lesser extent. at rbs, stephen hester in, out. ross mcewan in. my sources and the united states of america and here in london that i speak to at rbs, i cannot actually repeat the language they use in terms of the atmosphere inside rbs in terms of what is happening in the waiting game that has started playing. there are structural issues within rb. s. nowhere near the beginning of major restructuring. >> talk to us about the stress tests. i was catching up with the italian finance minister yesterday we talked about the italian banks. it seems that overall, the u.k. banks have been through much tougher strategy -- stress tests. >> the system we will use here is talking about house prices dropping by 35%. an unemployment rate of 12%. the most telling line of all for me, the stress tests in the united kingdom are being benchmarked off an interest rate of 4%. so telling. that is below, certainly below the long-term average and certainly below my long-term memory. >> thank you so much. coming up, are you obsessed with how the cards -- "house of ca rds"? >> it is so much fun. because i am heavily involved in it. i feel, we all grapple with it and we talk about it and we discussed the. -- discuss it. he says, they are your idea is terrible. there is this remarkable journey we are all on. it, theirt part of summary things i do not know yet about francis. >> you can watch the full interview on "charlie rose" tonight at 10:00 p.m. london time. "on the move is back in a couple minutes. ♪ >> welcome back. i'm francine lacqua. this is "on the move." bskyb reported earnings. it is a report we are watching closely as the tv landscape changes and competition is heating up. ryan chilcote joins us for a breakdown on the numbers. ryan? >> francine, there is one number you need to pay attention to and that is the total number of tv customers they added in the last quarter and that number is 74,000. defying competition from bt which invested heavily and buying rights to show football bearishnd defying expectations from analyst, some of whom thought for the first ld actuallyskyb wou lose tv customers since getting in the pay-tv business 15 years ago. 0 millionpent 90 billion, to buy rights to show champions league games. they spent money to show 38 premier league games. yesterday they said they would give that to their broadband customers for a second year free. existing and new customers. yet, and looks this morning like bskyb is going to give bt a run for its money. fran? >> at the same time, the media space is getting more and more, getting. from the comments we got from bskyb today? >> two things. on the distribution front, we learned off the you can get sky-go and now-tv on your playstation iv. we have not heard that kind of thing a few years ago. then content. deal,ave just announced a a multiyear licensing agreement with paramount pictures which brought us "anchor man." i know, fran, i'm not sure how to put this to you but i am a big deal. think i could be ron burgundy. that is what it is all about -- giving people the content they want. it does not really matter who the content provider is. they have got to get that if they're going to get people to give them money and get them to subscribe to their services. francine? cannot comment on ron burgundy. if i say one thing, you will be upset. it is like when somebody says, does my sister look nice? >> it is a battle for the last line. >> ryan chilcote with the latest on bskyb. let's keep the conversation on bskyb going. i'm joined by roger perry, several media companies. think you so much for coming. give me a sense, this is all about the battle for your living room. this is about content. what bskyb is doing very well is it is reinvesting everything it makes. >> what we're seeing is classic bskyb labor. they put their revenues out. they put a few more subscribers but their profits are going down. the reason the profits are going down as they are investing in their own business. they take the long-term view. they are trying to think through what living rooms will look like in three to five years time. >> which is what investors like that because they are reinvesting and trying to look ahead which is why the stock is gaining 4.5%. what is my living room going to look like? it is going to be completely digital? what do i, what will i use and want? >> it will be a lot more than your living room. sky have a project they're working on. rogers et -- project ether. your program content will live on the cloud. be able to watch it in the kitchen, the vegan, the bathroom and take it with you on your tablet. that is the way sky will become part of your life. it will be a lot more than sitting front of the tv. it will be an overall experience of watching content. >> this is the ultimate battle ground. u.s. companies are trying to be the all encompassing tv provider. who will win the game? >> you have to think in this country that someone like bskyb has a really strong platform from which to attack it. if you think about their history, they started out essentially with a monopoly of satellite distribution. they were the only way to get satellite tv. nowadays, the same stuff can toe through in your home terrestrial or broadband. what they have done, they have been a technology company. they thought about all the issues. they are not just a television broadcaster. they are not just a telephone utility. they started out from the by place. -- the right place. they are in a good position. time, a lot more american companies are looking at the european space. is convocation going to -- go high up? >> we as consumers are in for golden days. we will have a lot of opportunities thrown at us and there will be a lot of pricing pressures. we will be able to get content cost-effectively. we saw this country that viacom are buying channel five. that will put a lot more pressure on channel four and itv. it isn't just going to be that bt -- that bskyb is the giant. everyone is going to get pushed. will the ultimate winner, they have to provide original content? i'm thinking of netflix. >> my own view is that original content is key to this. this battle started by buying moving rights and it moved into buying sports rights. now it is getting into buying drama rights. you were playing kevin spacey's trailer for the interview tonight. you think about just what a seismic shift it is that netflix, accompany you never heard of a few years ago, is making something that has 100 episodes. that is a tremendous investment. it's working. people are signing up to netflix all over the world. >> that is going to be the real game changer. is there anything we are not real the -- realizing at the moment? when we look at the way we consume media. if anyone predicting the amount we would be using? >> i think people certainly thought that there would be a lot more tv channels. i think that we probably missed is the idea that the thing on no longer a tv. it is a screen that gives you access to a vast range of different ways of getting a hold of content. i think the thing that will change a lot is we will more and more be lured away from the idea i am sitting down to watch the telly. you're going to say i'm going to watch "game of thrones." you are not sam going to watch sky. you'll save -- you are not going to say i watch sky. it will be who brings you the content most cost-effectively. >> roger parry the chairman of msq partners. "the pulse is coming up in 10 minutes. i am joined by guy johnson. we have great exquisite interviews. we will talk about china, m&a, and the european economy. >> we have got some exclusives coming up. you have spoken to the finance minister of italy. can't wait to hear what he has to say. interesting comments coming out about the euro "the railway mao. , he is ofger bootle the view that we need to talk about a renegotiation of the u.k. versus the eu. we will talk about this following yesterday's court ruling. what is your job going to look like in the future? are we in the midst of an industrial revolution where huge swathes of the population start to see their jobs changing? we will talk to a futuroloti ogist about that. we will talk about t-mobile and sprint. it is labor day. that is why we are talking about jobs of the future. day where aven a lot of people are taking the day off, it will be a cracking show. >> guy johnson with "the pulse" in nine minutes. he is the third richest person in the world. he's in fire thousands of investors. we sat down with one of warren buffett followers. coming up next. ♪ >> this saturday tens of thousands of investors descend on omaha, nebraska to participate in the woodstock of capitalism. it is berkshire hathaway's shareholder meeting. bloomberg caught up with one of warren buffett's most faithful followers. >> my name is ryan morris. i am 29, managing $15 million. warren has said he lives like he year, except00 a for the private jet. before the berkshire meeting last year to pay our respects to the great church of frugality, four guys who work it has far flew andedge funds, got the cheapest rental car to drive to omaha. hotel in the crappiest have ever been in. you go to these events were they have free drink sent food. night forn to $48 a four of us in the busiest weekend in the year in omaha. old, i had this idea that i wanted to change the world through science. my father introduced this idea that even if you are the best scientists in the world, you will not make fusion happen. it is the guise of the capital who make the decisions. and so that sort of flip the switch for me. let's look at forbes 400. who is this guy warren buffett? i started reading his letters. sounds very sit deceptively -- very deceptively simple. i can do that. the fact it was accessible at all to a 12-year-old is just amazing. that goes to the power of how he can communicate in a way that is primal and accessible. yourtt says choose heroes wisely. wasas been my hero since i 12. warren buffett has set the best example that any is this person ever has. so a huge impact. >> oh, yes. his most faithful follower. we tracked them down and interviewed him. "hateship loveshi -- guy johnson and i are back. mywill bring you more with exclusive conversation with the italian finance minister p adoan. i'm back in a couple of minutes. ♪ . . >> a bloomberg explosive, italy's finance minister tells us he doesn't see the euro moving lower. >> a sprint for mobile. the carrier is ready for making a bid for t-mobile. revolution 2.0. as europe celebrates mayday, we debate how tech will transform your job in the future. good morning, welcome. you are watching "the pulse."

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