Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here
Speaker 2: are the stories we're following today.
Speaker 3: Karen, we begin with the latest on the standoff between
Speaker 3: the US and Iran. President Trump is promising not to
Speaker 3: let up on the naval blockade of Iran's ports to
Speaker 3: try to pressure Tehran back to the negotiating table. The
Speaker 3: President says Iran's economy is a disaster and the impact
Speaker 3: on US prices at the pump won't last.
Speaker 1: The country's do really well, and that's despite a military operation.
Speaker 4: I don't call it a work.
Speaker 1: Could you rather have a military operation?
Speaker 5: We're really.
Speaker 4: I mean, Iran is dying to make a deal. I
Speaker 4: can only tell you that.
Speaker 3: I was President Trump speaking to reporters in the Oval Office.
Speaker 3: But Iran is holding firm. As we hear from Bloomberg's
Speaker 3: Patrick Sykes in Istanbul.
Speaker 1: The supreme leader in Iran, who we still haven't seen
Speaker 1: person or even heard his voice, is still in effective,
Speaker 1: hiding and thought to be wounded. He said very clearly
Speaker 1: that Iran wouldn't be compromising on its nuclear technology or
Speaker 1: its missile program. And then overnight as well Iran has
Speaker 1: said that incepted some drones overnight, So it still feels
Speaker 1: like it's very tense, even above Tehran itself.
Speaker 3: Bill brigs Patrick Sykes reports Iranian officials are warning the
Speaker 3: blockade will keep driving up oil prices. Axios is reporting
Speaker 3: the President Trump got a briefing from US Central Command
Speaker 3: and the head of the Joint Chiefs of Staff about
Speaker 3: further military options against Iran.
Speaker 2: Nathan Defense Secretary Pete Haygesith and other Pentagon officials wrapped
Speaker 2: up testimony on Capitol Hill, this time answering questions before
Speaker 2: the Senate Armed Services Committee. Haigesith defended the US position
Speaker 2: about the war with Iran to Democrat Kirsten Gillibrand up
Speaker 2: New York.
Speaker 3: So the question I would ask to you and to
Speaker 3: others is what is the cost of a nuclear armed Iran?
Speaker 3: What is the cost to the American people's The world's
Speaker 3: most dangerous regime has a weapon.
Speaker 6: But the truth is they don't want war coming to
Speaker 6: this shore, and when you do decapitation operation, the likelihood
Speaker 6: is going to be exchanged. In the United States, There's
Speaker 6: no evidence that we are safer because of this war.
Speaker 6: We did not have any evidence that Iran intended to
Speaker 6: eminently attack this country in any way, shape or form.
Speaker 2: On Wednesday, Hey, Seth God, you'rerilled buy a House panel
Speaker 2: who questioned the US justifications for the war in Iran.
Speaker 4: We're caring.
Speaker 3: The longest partial government shut down ever is over. President
Speaker 3: Trump has signed the bill to fund most of the
Speaker 3: Department of Homeland Security except for immigration enforcement. Republicans planned
Speaker 3: to pass those funds separately in a budget bill that
Speaker 3: won't require Democratic votes. Here's House Speaker Mike Johnson, this.
Speaker 7: Will relieve pressure from the Department of Homeland Security Sectuary Mullen.
Speaker 4: We greatly relieve the President will, the administration will.
Speaker 7: We were not going to have lines at TSA.
Speaker 5: Everybody who get their paychecks.
Speaker 4: Now we'll get moving forward.
Speaker 3: House Speaker Mike Johnson says Republicans overcame their differences on
Speaker 3: the bill after the White House warned it had run
Speaker 3: out of funds to pay TSA workers. This month, Democrats
Speaker 3: had demanded restrictions on ice enforcement after the killings of
Speaker 3: two US citizens in Minnesota, but Republicans rejected their proposals.
Speaker 3: Democrats say the issue will come back to hunt Republicans
Speaker 3: in the midterms.
Speaker 2: Let's turn to the markets now, Nathan, where the record
Speaker 2: run on Wall Street continues. The S and P five
Speaker 2: hundred and Nasdaq enter today's session at all time highs.
Speaker 2: The SNP rows ten percent in April, it's best month
Speaker 2: since twenty twenty. Matt Raw is senior portfolio manager at
Speaker 2: Men Group.
Speaker 8: I think there's an assumption that at some point in
Speaker 8: the relatively near term, we're going to get a resolution
Speaker 8: to the straits being reopened, the normalization of crude. So
Speaker 8: for now, the market is saying that the AI benefit
Speaker 8: and the potential upcrash associated with AI has a higher
Speaker 8: weight than the potential near term consumer spending drag.
Speaker 2: Matt Row of Man Group. The S and P five
Speaker 2: hundred closed above seventy two hundred for the first time
Speaker 2: ever yesterday.
Speaker 3: Big company news to tell you Karen. Share of Apple
Speaker 3: are up more than two and a half percent in
Speaker 3: early trading. The iphonemaker delivered a surprisingly strong revenue forecast
Speaker 3: for the third quarter. We get more from Bloomberg Tech
Speaker 3: host ed Ludlow Change.
Speaker 9: In Fortunes for the stock change in sentiment on how
Speaker 9: Apple's doing. The guide for the current period the June
Speaker 9: quarter is that revenue will grow fourteen percent to seventeen
Speaker 9: percent year on year. There is strong demand. There was
Speaker 9: one notable moment incoming. CEO John Turnis did speak briefly
Speaker 9: on the call. He said there's an exciting product roadmap,
Speaker 9: but specifically declined to give any details. So the key
Speaker 9: takeaways strong demand, some supply constraints, manageable cost pressures, and
Speaker 9: it was all about the guidance that was good enough
Speaker 9: to change the course of direction for the stock, but
Speaker 9: also how the market felt about what was a beat
Speaker 9: but not a blowout for Apple in.
Speaker 4: The quarter gone.
Speaker 9: This is Ed Ludlow for Bloomberg News in San Francisco.
Speaker 2: All right, Ed, thank you well. Shares of Roadblocks, they
Speaker 2: are plunging down almost twenty twenty three percent. The video
Speaker 2: game company reported first quarter users that fell short of
Speaker 2: analyst estimates, and the drop comes after Roblocks implemented a
Speaker 2: safety features restricting how kids, who make up a majority
Speaker 2: of his audience can use the platform. Time now for
Speaker 2: look at some of the other stories making news in
Speaker 2: New York and around the world, and for that we're
Speaker 2: joined by Bloomberg's Michael Barr.
Speaker 5: Michael, good morning, Good morning, Karen King, Charles and Queen
Speaker 5: Camilla have wrapped up their visit to the US. During
Speaker 5: his visit, King Charles gave a speech before Congress, attended
Speaker 5: a state dinner, and paid a visit to New York City.
Speaker 5: On their last day, the royal couple paid their respects
Speaker 5: at the tomb of the Unknown Soldier at Arlington National Cemetery,
Speaker 5: and they celebrated America's two hundred and fiftieth birthday at
Speaker 5: a block party in Virginia. More than a million people
Speaker 5: in Lebanon are expected to face food in security by August,
Speaker 5: according to a new analysis from the United Nations and
Speaker 5: World Food Program. Joseph Bellevo is the executive director of
Speaker 5: the humanitarian group Global. He says the food crisis is
Speaker 5: due to the war in Iran, displacement and economic pressures.
Speaker 10: We're incredibly stressed. The entire health system was already vulnerable,
Speaker 10: was already fairly weak prior to March second, when this
Speaker 10: round of conflict erupted. Since that time, one hundred and
Speaker 10: forty seven hits on medical facilities.
Speaker 5: Joseph Bellevue with med Global. A suicide note purportedly written
Speaker 5: by the convicted sex offender Jeffrey Epstein is locked inside
Speaker 5: the case file of his former cellmate, convicted murderer Nicholas Tartaglioni.
Speaker 5: He told The New York Times it was written on
Speaker 5: paper from a yellow legal pad and tucked inside a book.
Speaker 5: Tartaglioni says he found the purported suicide note. In July
Speaker 5: of twenty nineteen, a school board meeting got so heated
Speaker 5: in Philadelphia that the board members shifted to a virtual format.
Speaker 5: The board approved the controversial three billion dollar facilities plan
Speaker 5: that includes, among other things, the closure of seventeen public
Speaker 5: school Lisa Haver is with the Parent and community group
Speaker 5: Alliance for Philadelphia Public Schools.
Speaker 4: I'm horrified.
Speaker 3: I'm like, how many times can these students and parents
Speaker 3: come and say we don't want to save our school.
Speaker 5: District leaders say it's necessary because they have to address
Speaker 5: a three hundred billion dollar deficit. Global News twenty four
Speaker 5: hours a day and whenever you want it with Bloomberg News.
Speaker 5: Now Michael barrm this is Bloomberg Karrot.
Speaker 2: All right, Michael Barr, thank you, Thanks Michael. Time now
Speaker 2: for our Bloomberg Sports update, and for that we bring
Speaker 2: in John stash Hour.
Speaker 4: Thanks Darren An.
Speaker 11: NBA playoff blowout that Nicks in Atlanta led forty to
Speaker 11: fifteen after the first quarter in eighty three to thirty
Speaker 11: six at halftime. The final was one forty to eighty nine.
Speaker 11: They win the series four to two. They'll find out
Speaker 11: tomorrow who they'll play the next round. The Celtics and
Speaker 11: Sixers are going to a game seven in Boston after
Speaker 11: Philly stayed alive for a second time. Minnesota finished off Denver,
Speaker 11: winning four games to two in the Stanley Cup playoffs,
Speaker 11: five to two wins at home for both Minnesota and Anaheim.
Speaker 4: Both teams move on. That's your Bloomberg Sports update.
Speaker 2: Stay with us more from Bloomberg Daybreak coming up after this.
Speaker 3: Coast to coast on Bloomberg Radio, nationwide on Serious XM,
Speaker 3: and around the world on Bloomberg dot Com and the
Speaker 3: Bloomberg Business app.
Speaker 4: This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.
Speaker 3: Easily the biggest week for earnings this quarter is closing
Speaker 3: out with surprisingly strong results from Apple. The iphonemaker delivered
Speaker 3: a revenue forecast blowing past Wall Street estimates. So it
Speaker 3: did come with some warnings that memory chip costs you're
Speaker 3: going to keep going up and a shortage of Mac
Speaker 3: computers could last for several more months. Here with us
Speaker 3: for some morning after analysis is Dan Ives, the global
Speaker 3: head of Tech research at Wedbush Securities. Always great to
Speaker 3: talk tech with you, Dan, And I did see your
Speaker 3: post on x saying that these earnings sure in a
Speaker 3: potential golden era for Apple.
Speaker 4: Tell me more, good morning.
Speaker 7: Good morning. Look, I mean me and you.
Speaker 12: You know, if you think about over the last year,
Speaker 12: there have been ups and downs, but we're actually really
Speaker 12: more downs and ups in terms of what we've seen
Speaker 12: the last few years.
Speaker 7: This was as robust of a quarter and god as
Speaker 7: we've seen a few years.
Speaker 12: I mean, this is almost a mini supercycle that's playing out.
Speaker 12: I think there's a stock that's going to have huge
Speaker 12: upside here and it's just as Cook's handing the baton
Speaker 12: to turnus.
Speaker 7: Really a golden night, not just for the next but
Speaker 7: for Apple.
Speaker 3: Okay, I did see your note as well, putting a
Speaker 3: focus in particular on the results out of China. Is
Speaker 3: it going to be particularly important for Apple to keep
Speaker 3: growing the market in China to keep its momentum going.
Speaker 7: Look, Nathan, that's the hearts and lungs. And if you
Speaker 7: think about the last year, that's been a headwind. Now
Speaker 7: it's a talent.
Speaker 12: Now, look, some of that is product cycle, some of
Speaker 12: it's also Cook being part politician navigating what we've seen
Speaker 12: China the last year. Now it's a talent and that's
Speaker 12: the hearts and lungs of Apple strategy. Twenty percent of
Speaker 12: iPhones come out of China, a huge sort of flex
Speaker 12: the muscles moment for Cooper tina.
Speaker 4: I mentioned the memory chip costs.
Speaker 3: This is something that's been coming up quite a bit
Speaker 3: of this particular tech earning cycle. The chip costs going up.
Speaker 3: Is that going to be a crimp on Apple's margins?
Speaker 3: Are consumer is going to have to start thinking about
Speaker 3: prices going up for their next round of iPhones.
Speaker 7: It's really the latter.
Speaker 12: I think you'll have one hundred and maybe one hundred
Speaker 12: and fifty dollars price increases. Book Some of that they'll
Speaker 12: absorb through the supply chain, but ultimately this is something
Speaker 12: that you know they're probably they're going to have.
Speaker 7: To hike prices a bit.
Speaker 12: Nothing significant, it's just what's happened in memory. It's a
Speaker 12: memory supercycle. And to get on the line for those chips,
Speaker 12: there's shortages.
Speaker 7: We've seen across the board. Given AI revolution.
Speaker 3: Do consumers stomach that those kinds of price increases?
Speaker 4: Do you think?
Speaker 7: Look?
Speaker 12: I think when I think about called three hundred million
Speaker 12: and have an upgrade to iPhone, there will be a
Speaker 12: lot of in send thems out there from the carriers.
Speaker 12: Carriers will also probably you know, ultimately absorb some of that.
Speaker 12: It's maybe a one percent churn from that number, maybe
Speaker 12: one and a half percent, but that's not something too significant. Look,
Speaker 12: when it comes to pricing, navigating the supply chain when
Speaker 12: to raise prices, the Hall of Fame or Cook.
Speaker 7: News when to do it? And I think that's what
Speaker 7: you'll see.
Speaker 3: So how does this set things up for John Turnas
Speaker 3: when he does take the baton and thinking about the
Speaker 3: Worldwide Developers Conference coming up as well?
Speaker 4: What about the AI story?
Speaker 2: Dan?
Speaker 7: Well, first off, if you go.
Speaker 12: Back, I mean there's a surprise obviously when Cook announce,
Speaker 12: but now knowing these numbers, you see why he did
Speaker 12: it because he's he's handled the toon a great time,
Speaker 12: going to them with a mini supercycle.
Speaker 7: But the reality is turnus, it's going to be about
Speaker 7: AI that will define Apple I.
Speaker 12: Think in WWDC is where they ultimately released the first
Speaker 12: part of that strategy in terms of serie AI with
Speaker 12: Jem and I, we think ultimately is a subscription service
Speaker 12: that's going to be important. I think that's where seventy
Speaker 12: five to one hundred dollars per share as the consumer
Speaker 12: AI revolution go should get Fatina.
Speaker 3: In our last minute, Dan, what's your overall take on
Speaker 3: how this week of earnings went? It seemed like it
Speaker 3: was kind of hit or miss when it comes to
Speaker 3: how these hyperscalers are monetizing AI.
Speaker 7: Look, this is.
Speaker 12: About as bullsh underlying fundamentals, guy, that you could have
Speaker 12: seen from big tech, specifically in terms of the cloud players,
Speaker 12: everything you're seeing from Microsoft, Google, Amazon, and even Meta
Speaker 12: from a cap Bax perspective.
Speaker 13: Look, I think the bear thesis essentially got thrown out
Speaker 13: the window this week. I think tech stocks are up
Speaker 13: another ten to fifteen percent higher and there is no
Speaker 13: better validation you could have seen from big tech.
Speaker 7: Fool's going to the weekend pretty happy.
Speaker 3: In our last just ten seconds here you talk about
Speaker 3: what time it is in the AI party.
Speaker 4: What time do you think it is now?
Speaker 7: Well, it's about eleven thirty pm. Maybe the cops came
Speaker 7: try to break up the.
Speaker 12: Party over the last month, they left the music's back on.
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Speaker 4: And I'm Nathan Hager.
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