1 00:00:02,480 --> 00:00:03,000 Speaker 1: Good morning. 2 00:00:03,080 --> 00:00:05,920 Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the 3 00:00:05,960 --> 00:00:07,440 Speaker 2: stories we're following today. 4 00:00:07,800 --> 00:00:10,240 Speaker 3: We want to begin this morning with an antitrust ruling 5 00:00:10,240 --> 00:00:14,000 Speaker 3: that threatens to upend the mobile app economy. A federal 6 00:00:14,080 --> 00:00:16,880 Speaker 3: jury in San Francisco has ruled in favor of video 7 00:00:16,920 --> 00:00:20,840 Speaker 3: game developer Epic Games, declaring that Alphabet's mobile app store 8 00:00:20,960 --> 00:00:24,319 Speaker 3: has a monopoly over distribution of programs and payments on 9 00:00:24,360 --> 00:00:28,400 Speaker 3: its Android software. Like Apple's App store, Google Play charges 10 00:00:28,480 --> 00:00:31,480 Speaker 3: up to thirty percent commissions for users, and it generates 11 00:00:31,520 --> 00:00:35,159 Speaker 3: close to two hundred billion dollars a year. Bloomberg Executive 12 00:00:35,240 --> 00:00:38,080 Speaker 3: editor Peter Elstrom says this was a surprise ruling after 13 00:00:38,080 --> 00:00:41,480 Speaker 3: Epic lost a similar case against Apple two years ago, 14 00:00:41,560 --> 00:00:43,640 Speaker 3: but he says there are some key differences. 15 00:00:44,040 --> 00:00:46,559 Speaker 4: Google had a whole series of special deals that it 16 00:00:46,600 --> 00:00:49,400 Speaker 4: was cutting with different companies from different fees within the 17 00:00:49,440 --> 00:00:53,680 Speaker 4: app store. For example, Spotify, the music service, essentially bypass 18 00:00:53,760 --> 00:00:56,200 Speaker 4: the fees from the Google App Store. In many cases, 19 00:00:56,240 --> 00:00:59,960 Speaker 4: companies pay thirty percent fees. So the argument was that Google. 20 00:01:00,080 --> 00:01:03,160 Speaker 4: Google had something that they called Project hug where they 21 00:01:03,160 --> 00:01:06,120 Speaker 4: were trying to keep the most important apps within the 22 00:01:06,200 --> 00:01:09,440 Speaker 4: store not go to rival stores that could compete against 23 00:01:09,480 --> 00:01:12,040 Speaker 4: them in the Google Play Store, and Epic argued that 24 00:01:12,120 --> 00:01:14,039 Speaker 4: this was at a competitive behavior. 25 00:01:14,280 --> 00:01:17,560 Speaker 3: Bloomberg's Peter Elstrom says Alphabet plans to appeal the decision. 26 00:01:17,640 --> 00:01:20,440 Speaker 3: Epic didn't seek financial penalties, but it is looking for 27 00:01:20,560 --> 00:01:22,160 Speaker 3: changes to the Google Play Store. 28 00:01:22,560 --> 00:01:25,040 Speaker 2: Well, we turned to Washington, now, Nathan, where the focus 29 00:01:25,120 --> 00:01:28,040 Speaker 2: is on geopolitics and the fight over a foreign aid 30 00:01:28,080 --> 00:01:32,080 Speaker 2: in Congress. Ukraine's President Vladimir Zelenski is in Washington for 31 00:01:32,120 --> 00:01:35,080 Speaker 2: a two day visit. He spoke alongside Defense Secretary Lloyd 32 00:01:35,120 --> 00:01:38,360 Speaker 2: Austin at the National Defense University yesterday. 33 00:01:38,560 --> 00:01:42,480 Speaker 5: Process war on Ukraine isn't just about Is it just 34 00:01:42,520 --> 00:01:48,880 Speaker 5: about some old fashioned dictatorship trying to settle scores real 35 00:01:49,160 --> 00:01:50,320 Speaker 5: or imagined. 36 00:01:50,720 --> 00:01:55,240 Speaker 6: It's not just Moscou trying to split Europe again. It's 37 00:01:55,480 --> 00:01:59,680 Speaker 6: put him put in attacking that big sheet that happened 38 00:02:00,120 --> 00:02:01,960 Speaker 6: back in nineteen eighty nine. 39 00:02:02,280 --> 00:02:04,480 Speaker 2: And President Zelenski also met with the head of the 40 00:02:04,480 --> 00:02:08,160 Speaker 2: International Monetary Fund, A christ Alina Georgiaeva, who announced the 41 00:02:08,200 --> 00:02:11,680 Speaker 2: dispersal of nine hundred million dollars in aid. Selenski meets 42 00:02:11,720 --> 00:02:15,280 Speaker 2: today with President Biden and Republican lawmakers. They refused to 43 00:02:15,320 --> 00:02:18,680 Speaker 2: budge on about sixty billion dollars in new assistance without 44 00:02:18,760 --> 00:02:20,079 Speaker 2: funds for the southern border. 45 00:02:20,320 --> 00:02:22,480 Speaker 3: Well, Karen, the focus is also on the other major 46 00:02:22,520 --> 00:02:25,480 Speaker 3: global conflict in the Middle East. President Biden is warning 47 00:02:25,600 --> 00:02:28,600 Speaker 3: Israel that public support for its war against Hamas could 48 00:02:28,680 --> 00:02:32,160 Speaker 3: shift as the civilian death told mounts in the Gaza strip. 49 00:02:32,280 --> 00:02:34,640 Speaker 3: The President is still backing Israel's fight. 50 00:02:34,720 --> 00:02:36,880 Speaker 7: As I said after the attack, Mike, commitment to the 51 00:02:36,880 --> 00:02:40,239 Speaker 7: safety the Jewish people and the security of israel Is 52 00:02:40,320 --> 00:02:45,120 Speaker 7: right to exist, is independent as an independitary state is 53 00:02:45,160 --> 00:02:46,560 Speaker 7: just unshakable. 54 00:02:47,400 --> 00:02:50,320 Speaker 3: President Biden spoke at a Whinehouse Honkka reception as his 55 00:02:50,360 --> 00:02:52,680 Speaker 3: administration pushes Congress for new aid. 56 00:02:53,080 --> 00:02:57,240 Speaker 2: Meanwhile, Nathan last Week's Congressional testimony over campus anti semitism 57 00:02:57,320 --> 00:03:00,960 Speaker 2: continues to Royal higher education. More than seven hundred faculty 58 00:03:01,000 --> 00:03:04,520 Speaker 2: members at Harvard University have signed a petition urging school 59 00:03:04,600 --> 00:03:08,200 Speaker 2: leadership to resist political pressures, including calls for the removal 60 00:03:08,200 --> 00:03:11,520 Speaker 2: of President Claudine Gay. More than a thousand students at alumni, 61 00:03:11,600 --> 00:03:14,720 Speaker 2: including billionaire donors like Bill Lackman, are demanding this school 62 00:03:14,760 --> 00:03:18,280 Speaker 2: replace her, and this morning, sources tell the school's newspaper 63 00:03:18,280 --> 00:03:21,160 Speaker 2: at the Harvard Crimson, that Gay will remain in office. 64 00:03:21,240 --> 00:03:25,120 Speaker 2: After receiving backing from the university's highest governing body, Gay 65 00:03:25,160 --> 00:03:27,880 Speaker 2: in the heads of MIT and the University of Pennsylvania 66 00:03:27,919 --> 00:03:30,760 Speaker 2: struggle to say directly that calling for the genocide of 67 00:03:30,840 --> 00:03:35,320 Speaker 2: Jews violates school harassment policies. Liz McGill stepped down as 68 00:03:35,400 --> 00:03:37,160 Speaker 2: Penn's president over the weekend. 69 00:03:37,480 --> 00:03:40,360 Speaker 3: Sticking with politics, the Supreme Court has agreed to hear 70 00:03:40,480 --> 00:03:44,320 Speaker 3: former President Donald Trump's claims of presidential immunity over the 71 00:03:44,320 --> 00:03:47,040 Speaker 3: Special Council's twenty twenty election interference case. 72 00:03:47,320 --> 00:03:49,200 Speaker 1: Bloomberg Zed Baxter has that story. 73 00:03:49,400 --> 00:03:52,440 Speaker 8: Special counsel Jacksmith filed the motion, saying it goes to 74 00:03:52,480 --> 00:03:55,720 Speaker 8: the heart of democracy whether Donald Trump or any other 75 00:03:55,760 --> 00:04:00,640 Speaker 8: president has what Trump has claimed as absolute immunity. Trump 76 00:04:00,640 --> 00:04:02,880 Speaker 8: filed an appeal that would go to win Appellet Court, 77 00:04:02,880 --> 00:04:05,560 Speaker 8: but Smith petitioned the highest court in the land to 78 00:04:05,680 --> 00:04:09,040 Speaker 8: try to get an expedited ruling. It would end up 79 00:04:09,040 --> 00:04:12,000 Speaker 8: there in any event. The fighting Mirk's the first time 80 00:04:12,040 --> 00:04:13,800 Speaker 8: the Court has been asked to intervene in one of 81 00:04:13,840 --> 00:04:18,080 Speaker 8: these cases on election interference. Regarding mister Trump, Smith is 82 00:04:18,120 --> 00:04:21,080 Speaker 8: asked for the court to rule during this term, which 83 00:04:21,200 --> 00:04:24,440 Speaker 8: ends in June. Ed Baxter, Bloomberg Radio. 84 00:04:24,320 --> 00:04:25,120 Speaker 1: All right, ed, thanks. 85 00:04:25,320 --> 00:04:29,240 Speaker 2: Elsewhere in politics, ousted former Congressman George Santos is in 86 00:04:29,320 --> 00:04:32,360 Speaker 2: plea talk to the prosecutors, and Bloomberg's Nancy Lyons has 87 00:04:32,360 --> 00:04:33,000 Speaker 2: the details. 88 00:04:33,240 --> 00:04:36,760 Speaker 9: Prosecutors say in a filing that they're engaged in discussions 89 00:04:36,760 --> 00:04:39,640 Speaker 9: with George Santos in hopes of resolving the matter without 90 00:04:39,640 --> 00:04:43,479 Speaker 9: a trial. Santos was set to appear to hearing Tuesday. 91 00:04:43,839 --> 00:04:47,240 Speaker 9: Santos is charged with multiple federal counts of stealing public 92 00:04:47,279 --> 00:04:51,440 Speaker 9: funds and lying on federal disclosure forms. Two people tied 93 00:04:51,480 --> 00:04:55,880 Speaker 9: to Santos's congressional campaign as former fundraiser and former treasurer, 94 00:04:55,960 --> 00:05:00,000 Speaker 9: have both pleaded guilty to federal charges in Washington. Nancy Lyons, 95 00:05:00,000 --> 00:05:01,040 Speaker 9: it's Bloomberg Radio. 96 00:05:01,200 --> 00:05:03,320 Speaker 3: All right, Nancy, thank you. We have some major economic 97 00:05:03,440 --> 00:05:06,560 Speaker 3: news on the calendar this morning. The November Consumer Price 98 00:05:06,600 --> 00:05:09,560 Speaker 3: Index comes out at eight thirty Wall Street time. The 99 00:05:09,600 --> 00:05:12,279 Speaker 3: final Federal Reserve meeting of the year kicks off today 100 00:05:12,279 --> 00:05:14,720 Speaker 3: and we get the decision and Chair J. Powell's news 101 00:05:14,720 --> 00:05:18,640 Speaker 3: conference tomorrow. Markets are looking for rate cuts next year. 102 00:05:18,680 --> 00:05:22,920 Speaker 3: But Bloomberg Intelligence chief US interra strate Strategistyreg Jersey thinks 103 00:05:22,960 --> 00:05:24,560 Speaker 3: Powell is going to push back. 104 00:05:24,839 --> 00:05:27,440 Speaker 10: The Fed is still an inflation fighting mode, right and 105 00:05:27,800 --> 00:05:30,800 Speaker 10: I think that they don't want the market to think 106 00:05:30,839 --> 00:05:33,080 Speaker 10: that they're going to be cutting very early, because that's 107 00:05:33,360 --> 00:05:36,400 Speaker 10: loosening financial conditions quite a lot. And because of that, 108 00:05:36,480 --> 00:05:39,760 Speaker 10: the big risk is to markets on Wednesday is that 109 00:05:39,839 --> 00:05:42,640 Speaker 10: they say, hey, we're probably not going to cut quite 110 00:05:42,640 --> 00:05:44,800 Speaker 10: as aggressively as the market's thinking right now. 111 00:05:44,880 --> 00:05:47,880 Speaker 3: In Bloomberg, Syra Jersey says, even if headline inflation meets 112 00:05:47,920 --> 00:05:51,680 Speaker 3: market expectations, core CPI could remain elevated enough to keep 113 00:05:51,760 --> 00:05:58,360 Speaker 3: rates on hold well into twenty twenty four. Tim how 114 00:05:58,400 --> 00:05:59,680 Speaker 3: to take a look at some of the other stories 115 00:05:59,720 --> 00:06:02,120 Speaker 3: making news around the world with Bloomberg's Amy Morris. 116 00:06:02,160 --> 00:06:03,560 Speaker 1: Good morning, Amy, Good. 117 00:06:03,400 --> 00:06:06,640 Speaker 11: Morning, Nathan. Firefighters didn't find anyone trapped in the debris 118 00:06:06,640 --> 00:06:09,599 Speaker 11: of that New York City apartment building yesterday. Part of 119 00:06:09,640 --> 00:06:13,240 Speaker 11: the seven story building collapsed, leaving apartments exposed and walls 120 00:06:13,320 --> 00:06:14,279 Speaker 11: just sheered off. 121 00:06:14,680 --> 00:06:15,680 Speaker 1: Neighbors are stunned. 122 00:06:16,000 --> 00:06:18,320 Speaker 2: Came from the top first and it just started falling 123 00:06:18,360 --> 00:06:19,000 Speaker 2: down everywhere. 124 00:06:19,240 --> 00:06:20,880 Speaker 1: I just see a lot of stuff just flying down. 125 00:06:20,880 --> 00:06:22,400 Speaker 1: I don't even know the bullet and phone and tire 126 00:06:22,480 --> 00:06:25,520 Speaker 1: really look was scared. I was, I'm thinking, you know, oh, 127 00:06:25,600 --> 00:06:26,480 Speaker 1: everybody's okay. 128 00:06:26,640 --> 00:06:29,600 Speaker 11: Fire officials say two people did suffer minor injuries while 129 00:06:29,640 --> 00:06:33,159 Speaker 11: they were evacuating the damaged building. After a poll last 130 00:06:33,160 --> 00:06:36,120 Speaker 11: week showed Mayor Eric Adams approval rating for a record 131 00:06:36,120 --> 00:06:39,159 Speaker 11: low twenty eight percent, there's a new poll showing who 132 00:06:39,200 --> 00:06:42,200 Speaker 11: could be the person to succeed Adams. Leading the list. 133 00:06:42,520 --> 00:06:46,600 Speaker 11: Former New York Governor Andrew Cuomo. Political consultant Ken Friedman 134 00:06:46,640 --> 00:06:49,080 Speaker 11: says Cuomo would be a viable candidate, and he tells 135 00:06:49,240 --> 00:06:52,560 Speaker 11: WABC New York the timing for Adams is just awful. 136 00:06:52,560 --> 00:06:55,960 Speaker 12: The migrant issue is a terrible problem for any mayor, 137 00:06:56,000 --> 00:06:58,479 Speaker 12: to be fair, and I can't you know, I've thought 138 00:06:58,480 --> 00:07:00,440 Speaker 12: about it a lot. And have you put you put 139 00:07:00,640 --> 00:07:03,359 Speaker 12: LaGuardia in office now, I don't think he could handle this, 140 00:07:03,560 --> 00:07:04,520 Speaker 12: or even Giuliani. 141 00:07:04,520 --> 00:07:07,640 Speaker 11: Frankly, some observers say it's the migrant crisis that's hurting 142 00:07:07,640 --> 00:07:11,320 Speaker 11: Adams more than anything else. Former Trump lawyer Rudy Giuliani's 143 00:07:11,320 --> 00:07:15,840 Speaker 11: defamation case is underway in DC. Giuliani had earlier admitted 144 00:07:15,960 --> 00:07:19,400 Speaker 11: he spread lies about two Georgia election workers, accusing them 145 00:07:19,440 --> 00:07:22,880 Speaker 11: of manipulating ballots, but now as the case gets underway, 146 00:07:23,200 --> 00:07:25,760 Speaker 11: Giuliani now denies that he likes. 147 00:07:25,640 --> 00:07:28,800 Speaker 13: When I testify, to get the whole story, and it 148 00:07:28,840 --> 00:07:32,679 Speaker 13: will be definitively clear that what I said was true 149 00:07:33,000 --> 00:07:36,880 Speaker 13: and that whatever happened to them, which is it's unfortunate 150 00:07:36,920 --> 00:07:40,400 Speaker 13: if other people overreact, but everything I said about them 151 00:07:40,560 --> 00:07:41,400 Speaker 13: is true. 152 00:07:41,640 --> 00:07:43,800 Speaker 11: The hearing is to determine how much he owes for 153 00:07:43,840 --> 00:07:46,880 Speaker 11: spreading the lies about the women. President Biden last week 154 00:07:46,920 --> 00:07:49,880 Speaker 11: said he was willing to make significant compromises over border 155 00:07:49,920 --> 00:07:54,120 Speaker 11: policy now before Congress breaks for winter recess. Senate Minority 156 00:07:54,200 --> 00:07:56,880 Speaker 11: Leader Mitch McConnell told the White House in his Senate 157 00:07:56,920 --> 00:08:00,720 Speaker 11: floor remarks, it would be imperative for any other Senate 158 00:08:00,760 --> 00:08:01,840 Speaker 11: support mister. 159 00:08:01,560 --> 00:08:03,920 Speaker 7: President when it comes to keeping America safe. 160 00:08:03,920 --> 00:08:05,800 Speaker 14: Border security is not a side show. 161 00:08:06,720 --> 00:08:07,720 Speaker 13: It's ground zero. 162 00:08:08,280 --> 00:08:12,040 Speaker 11: McConnell's latest push comes as Ukrainian President Voladimir Zelensky is 163 00:08:12,080 --> 00:08:15,320 Speaker 11: scheduled to address the Senate. Global News twenty four hours 164 00:08:15,320 --> 00:08:17,680 Speaker 11: a day and whenever you want it with Bloomberg News. Now, 165 00:08:18,040 --> 00:08:19,840 Speaker 11: I'm Amy Morrison. This is Bloomberg. 166 00:08:19,920 --> 00:08:21,440 Speaker 1: Nathan, all right, Amy, thank you. 167 00:08:27,040 --> 00:08:29,080 Speaker 3: Time now for the Bloomberg Sports Update, brought to you 168 00:08:29,120 --> 00:08:30,200 Speaker 3: by Tri State Outy. 169 00:08:30,320 --> 00:08:32,520 Speaker 1: Good morning, John Stanshout, Good morning, Nathan. 170 00:08:32,559 --> 00:08:36,160 Speaker 15: The legend of Tommy Cutlet Stavino continues to grow. 171 00:08:36,200 --> 00:08:37,000 Speaker 1: It's quite a story. 172 00:08:37,040 --> 00:08:40,880 Speaker 15: Undrafted rookie quarterback latches on with his hometown team while 173 00:08:41,000 --> 00:08:43,520 Speaker 15: still living with his parents. He goes from third string 174 00:08:43,600 --> 00:08:46,560 Speaker 15: quarterback to first leads the Giants to three straight wins. 175 00:08:46,640 --> 00:08:49,320 Speaker 15: Last night, DeVito ran for seventy one yards and he 176 00:08:49,400 --> 00:08:53,040 Speaker 15: completed seventeen of twenty one passes, one per touchdown. 177 00:08:54,000 --> 00:08:57,839 Speaker 4: Gasito in a shotguncept three receivers lacked partly news. 178 00:08:57,640 --> 00:09:00,920 Speaker 1: Light Torino call signals and take what's the snack. 179 00:09:01,080 --> 00:09:05,040 Speaker 4: Back to throw Woo's KOs White, Wo's Ques White looking 180 00:09:05,120 --> 00:09:06,520 Speaker 4: for someone on cover crosse. 181 00:09:06,320 --> 00:09:09,680 Speaker 3: To the year zone touchdown Giants Hi Sea Hodgin on 182 00:09:09,800 --> 00:09:10,400 Speaker 3: WFA N. 183 00:09:10,480 --> 00:09:12,520 Speaker 1: Giants led the Packers by eight. 184 00:09:12,679 --> 00:09:14,720 Speaker 15: Green Bay rally took the lead on a TV with 185 00:09:14,720 --> 00:09:16,600 Speaker 15: a minute half to go, but de Veto drove the 186 00:09:16,640 --> 00:09:19,000 Speaker 15: Giants into field goal range and they won twenty four 187 00:09:19,040 --> 00:09:22,000 Speaker 15: to twenty two on a Randy Bullock thirty seven yarder. 188 00:09:22,000 --> 00:09:25,560 Speaker 15: The Giants still just five and eight, but amazingly in 189 00:09:25,600 --> 00:09:28,120 Speaker 15: the NFC, that's only one game out of a playoff spot. 190 00:09:28,120 --> 00:09:30,720 Speaker 15: There were two Monday Nighters and the Titans of Dolphins 191 00:09:30,760 --> 00:09:34,480 Speaker 15: also a thriller in Miami. Huge comeback by Tennessee down 192 00:09:34,520 --> 00:09:36,880 Speaker 15: two touchdowns less than three minutes to go, they scored 193 00:09:36,920 --> 00:09:39,760 Speaker 15: fifteen points a TV at two pointer or another TV 194 00:09:39,920 --> 00:09:43,160 Speaker 15: fifty one seconds later. Tennessee won twenty eight twenty seven. 195 00:09:43,440 --> 00:09:47,120 Speaker 15: Surprising details emerging about the show Aotani contract with the Dodgers. 196 00:09:47,160 --> 00:09:49,679 Speaker 15: It is for seven hundred million dollars, but all but 197 00:09:49,840 --> 00:09:53,000 Speaker 15: twenty million will be deferred and paid off starting in 198 00:09:53,080 --> 00:09:56,600 Speaker 15: twenty thirty four. This allows the Dodgers to afford other players, 199 00:09:56,960 --> 00:09:59,199 Speaker 15: and they're said to be in it for another Japanese 200 00:09:59,240 --> 00:10:02,320 Speaker 15: import pitcher, y Ashinobo Yamamoto, who the Mets and Yankees 201 00:10:02,320 --> 00:10:02,840 Speaker 15: also cover. 202 00:10:03,280 --> 00:10:04,559 Speaker 1: Yanks met with him yesterday. 203 00:10:04,640 --> 00:10:08,079 Speaker 15: Nixon Islanders both beat Toronto, the Nets lost in Sacramento. 204 00:10:08,400 --> 00:10:10,200 Speaker 1: John Stash Edward Bloomberg. 205 00:10:09,760 --> 00:10:16,920 Speaker 16: Sports from coast to coast, from New York to San Francisco, 206 00:10:17,240 --> 00:10:21,880 Speaker 16: Boston to Washington, DC, nationwide on Syrias exam, the Bloomberg 207 00:10:21,920 --> 00:10:24,000 Speaker 16: Business app and Bloomberg Dot com. 208 00:10:24,120 --> 00:10:28,480 Speaker 1: This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. 209 00:10:28,520 --> 00:10:30,199 Speaker 3: We could have a sea change coming to the way 210 00:10:30,240 --> 00:10:33,199 Speaker 3: we access the apps that make our smartphones more than 211 00:10:33,280 --> 00:10:36,520 Speaker 3: just phones. The federal jury in San Francisco has found 212 00:10:36,520 --> 00:10:40,000 Speaker 3: that Alphabet's mobile app store Google Play is a monopoly 213 00:10:40,200 --> 00:10:45,920 Speaker 3: after a nearly month long antitrust case with fortnitemaker Epic Games. 214 00:10:46,040 --> 00:10:47,640 Speaker 3: For more on this what it could mean for the 215 00:10:47,720 --> 00:10:50,360 Speaker 3: multi billion dollar mobile app economy, we are pleased to 216 00:10:50,400 --> 00:10:54,280 Speaker 3: be joined by Bloomberg News technology reporter Mark Bergen Mark, 217 00:10:54,320 --> 00:10:57,840 Speaker 3: Good morning. What are the implications from this victory for 218 00:10:58,000 --> 00:10:58,680 Speaker 3: Epic Games? 219 00:11:00,120 --> 00:11:00,360 Speaker 16: Morning? 220 00:11:00,400 --> 00:11:03,000 Speaker 17: I mean the implications in one way is that Epic 221 00:11:03,120 --> 00:11:05,920 Speaker 17: and many other kind of all these apps that charge 222 00:11:05,920 --> 00:11:11,040 Speaker 17: for subscriptions or sort of in app services will be 223 00:11:11,080 --> 00:11:13,920 Speaker 17: conceivably able to pass us along to consumers. They will 224 00:11:14,000 --> 00:11:16,200 Speaker 17: just state that cut they were making that thirty percent 225 00:11:16,720 --> 00:11:19,640 Speaker 17: over to Google. If the policy actually changes, is that 226 00:11:19,720 --> 00:11:21,640 Speaker 17: something that they no longer have to make and so 227 00:11:21,760 --> 00:11:25,560 Speaker 17: that those companies will either have more money for their 228 00:11:25,559 --> 00:11:28,280 Speaker 17: own shareholders or that they can actually just charge cheaper 229 00:11:28,360 --> 00:11:29,319 Speaker 17: rates to consumers. 230 00:11:29,600 --> 00:11:33,360 Speaker 3: Interesting to see that potential implication when the whole idea 231 00:11:33,400 --> 00:11:37,800 Speaker 3: of antitrust cases is to try to lower prices for consumers. 232 00:11:38,360 --> 00:11:42,359 Speaker 3: But you're thinking that Epic and some other app providers 233 00:11:42,840 --> 00:11:44,720 Speaker 3: that might be the opposite case for them. 234 00:11:44,800 --> 00:11:48,040 Speaker 17: Oh no, no, and sorry, I mean I presumably they 235 00:11:48,040 --> 00:11:50,160 Speaker 17: could lower prices here because this is money that like, 236 00:11:50,200 --> 00:11:52,040 Speaker 17: that's the argument that Epic has been making, right, that 237 00:11:52,080 --> 00:11:54,559 Speaker 17: they the reason they have to have the higher fees 238 00:11:54,640 --> 00:11:58,160 Speaker 17: is because that they you know, every time someone buys 239 00:11:58,160 --> 00:12:00,959 Speaker 17: something within the app Store for a thirty percent cost 240 00:12:00,960 --> 00:12:02,880 Speaker 17: to the Apple in the play Store, thirty percent coast 241 00:12:02,920 --> 00:12:05,720 Speaker 17: to Google. And so now they've been arguing in others 242 00:12:05,760 --> 00:12:07,839 Speaker 17: that they can pass these savings along with cheaper. 243 00:12:07,679 --> 00:12:09,880 Speaker 1: Cheaper rates, pass the savings along. 244 00:12:10,000 --> 00:12:12,720 Speaker 3: Okay, yeah, for sure, let's get the miss here there. 245 00:12:13,840 --> 00:12:17,280 Speaker 3: But Epic lost a similar fight against the Apple App 246 00:12:17,320 --> 00:12:20,080 Speaker 3: Store two years ago. What made its case against Google 247 00:12:20,120 --> 00:12:20,800 Speaker 3: play so different? 248 00:12:21,640 --> 00:12:23,719 Speaker 17: It's a really interesting question because I know Google will 249 00:12:23,720 --> 00:12:26,440 Speaker 17: certainly argue that they are a lot more open than Apple. 250 00:12:26,800 --> 00:12:31,040 Speaker 17: I mean, Apple is, Google has Android was a bunch bigger. 251 00:12:31,160 --> 00:12:34,120 Speaker 17: They have, like they have a different Samsung soa it 252 00:12:34,120 --> 00:12:36,760 Speaker 17: has its own app store, and Huawei, these sort of 253 00:12:36,760 --> 00:12:41,280 Speaker 17: hardware manufacturers. Google is that does allow other app stores 254 00:12:41,360 --> 00:12:43,240 Speaker 17: to exist on Android phones in a way that that 255 00:12:43,280 --> 00:12:46,880 Speaker 17: Apple just doesn't on iPhones. I mean this this u 256 00:12:47,000 --> 00:12:49,720 Speaker 17: is a different political climate in some ways, Like Google 257 00:12:49,800 --> 00:12:54,280 Speaker 17: is back against the ropes on a number of issues 258 00:12:54,320 --> 00:12:58,840 Speaker 17: around around antitrust and both with its search position in 259 00:12:58,880 --> 00:13:01,400 Speaker 17: its app store. And this something that that Fortnite has 260 00:13:01,440 --> 00:13:04,720 Speaker 17: been an epic its owner has been working on for years. 261 00:13:05,320 --> 00:13:09,040 Speaker 3: So does this verdict have applications then for the Apple 262 00:13:09,080 --> 00:13:13,800 Speaker 3: App Store or any other providers that offer app stores 263 00:13:13,840 --> 00:13:15,920 Speaker 3: on their platforms, or is it just. 264 00:13:17,679 --> 00:13:20,760 Speaker 1: You know, just for alphabet. 265 00:13:20,480 --> 00:13:22,040 Speaker 17: This is I mean, this is a this is a 266 00:13:22,040 --> 00:13:23,840 Speaker 17: two company market in some ways, and in many ways 267 00:13:23,880 --> 00:13:27,240 Speaker 17: Apple dominates, right, So so another company sort of gives 268 00:13:27,280 --> 00:13:30,240 Speaker 17: us a full clarity about how much they make. But 269 00:13:31,280 --> 00:13:32,840 Speaker 17: you know a lot of estimates show that Apple just 270 00:13:32,840 --> 00:13:34,760 Speaker 17: makes so much more money from that's app store, like 271 00:13:34,800 --> 00:13:38,160 Speaker 17: iPhone users spend a lot more money. So this is 272 00:13:38,200 --> 00:13:42,080 Speaker 17: something that could certainly impact Apple. I think you know 273 00:13:42,120 --> 00:13:45,840 Speaker 17: what Epic CEO Tim sweet Sciaty's after is not just 274 00:13:46,320 --> 00:13:48,920 Speaker 17: a legal victory, but he's actually after a policy business 275 00:13:49,040 --> 00:13:51,640 Speaker 17: practice change. He wants the business models and the app 276 00:13:51,640 --> 00:13:55,160 Speaker 17: stores to fundamentally change, and they have been for for 277 00:13:55,320 --> 00:13:58,760 Speaker 17: the past few years, both Apple and Google have lowered 278 00:13:58,760 --> 00:14:02,319 Speaker 17: the fees they take for some subscription services like Netflix, 279 00:14:02,400 --> 00:14:05,920 Speaker 17: and they've made some concessions and been forced to make 280 00:14:05,960 --> 00:14:09,240 Speaker 17: concessions and other markets. So I think, you know, we 281 00:14:09,240 --> 00:14:12,199 Speaker 17: can also see that after the ruling, Google came out 282 00:14:12,200 --> 00:14:14,200 Speaker 17: and said there they're contesting this, so they're certainly not 283 00:14:14,240 --> 00:14:15,360 Speaker 17: going now without a fight. 284 00:14:16,520 --> 00:14:18,600 Speaker 1: How difficult to fight is it going to be? Though? 285 00:14:18,760 --> 00:14:19,320 Speaker 1: On appeal? 286 00:14:19,360 --> 00:14:22,080 Speaker 3: I mean, we've been speaking to some legal experts that 287 00:14:22,320 --> 00:14:26,320 Speaker 3: say the bar is set pretty high for Google to 288 00:14:26,360 --> 00:14:29,440 Speaker 3: try to overcome the difficulties that faced the trial. 289 00:14:31,120 --> 00:14:35,880 Speaker 17: Google has many well paid and veteran lawyers there you go, 290 00:14:36,480 --> 00:14:39,360 Speaker 17: and outside law firms, so I don't doubt that they'll 291 00:14:39,360 --> 00:14:41,800 Speaker 17: actually have enough kind of a legal fire part to 292 00:14:41,840 --> 00:14:42,440 Speaker 17: keep fighting this. 293 00:14:42,800 --> 00:14:44,120 Speaker 1: If this does stand. 294 00:14:44,200 --> 00:14:48,200 Speaker 3: Though, Mark, what kind of hit does Google stand to 295 00:14:48,240 --> 00:14:52,680 Speaker 3: take from revenue? I mean, thirty percent fees is nothing 296 00:14:52,680 --> 00:14:53,680 Speaker 3: to sneeze at. 297 00:14:55,160 --> 00:14:59,160 Speaker 17: That's correct, But this is still a small portion of 298 00:14:59,200 --> 00:15:01,760 Speaker 17: their overall business, right like this has something this has 299 00:15:01,880 --> 00:15:06,440 Speaker 17: not impact their cash cow search search advertising, and then 300 00:15:06,480 --> 00:15:09,680 Speaker 17: from there they make some farmer money on YouTube ads, 301 00:15:09,880 --> 00:15:12,680 Speaker 17: on display ads across the Internet and the cloud business, 302 00:15:14,000 --> 00:15:16,680 Speaker 17: and you know this is around the same down in 303 00:15:16,720 --> 00:15:19,400 Speaker 17: the and the sort of they blump everything together with 304 00:15:19,440 --> 00:15:22,960 Speaker 17: their hardware businesses like Google, Pixel and Nest Devices and 305 00:15:23,000 --> 00:15:27,560 Speaker 17: then play Store. So it's not insignificant certainly for any 306 00:15:27,560 --> 00:15:31,040 Speaker 17: of the companies that that's not an alphabet size. But 307 00:15:31,080 --> 00:15:32,760 Speaker 17: as you see, I don't as far as I know, 308 00:15:32,840 --> 00:15:36,280 Speaker 17: shares didn't drop tremendously on this news, and I think 309 00:15:36,320 --> 00:15:39,600 Speaker 17: that's in part because the markets are aware that, you know, 310 00:15:39,680 --> 00:15:42,280 Speaker 17: Google is this behemoth that has a lot of different 311 00:15:42,320 --> 00:15:43,600 Speaker 17: lines of businesses. 312 00:15:43,360 --> 00:15:46,320 Speaker 3: And at the same time, Google's facing anti trust action 313 00:15:46,400 --> 00:15:50,960 Speaker 3: from the Justice Department over search, particularly on cell phones 314 00:15:51,160 --> 00:15:54,840 Speaker 3: where the app store, where the Google play Store lives. 315 00:15:55,040 --> 00:15:57,920 Speaker 3: So in our last minute, could this case have implications 316 00:15:58,000 --> 00:16:00,320 Speaker 3: for for that case, or it's trying to make maintain 317 00:16:00,360 --> 00:16:01,960 Speaker 3: its search dominance on cell phones. 318 00:16:02,720 --> 00:16:06,920 Speaker 17: I think. I mean, this certainly gives more ammunition to 319 00:16:07,480 --> 00:16:10,800 Speaker 17: critics like Epic Games and Company and Spotify has been 320 00:16:10,840 --> 00:16:13,280 Speaker 17: a critic of sapster model and companies that have been 321 00:16:13,320 --> 00:16:16,520 Speaker 17: kind of willing to come out and take positions around 322 00:16:16,640 --> 00:16:19,400 Speaker 17: and complains the Justice Department to the FTC. And so 323 00:16:19,480 --> 00:16:23,200 Speaker 17: I think in that political sense, yeah, it certainly puts 324 00:16:23,280 --> 00:16:25,320 Speaker 17: Google further back on its speed. 325 00:16:25,880 --> 00:16:27,720 Speaker 3: All right, thanks for this, Mark, really good to get 326 00:16:27,720 --> 00:16:31,640 Speaker 3: the clarity on this pretty important decision. With Epic Games 327 00:16:31,680 --> 00:16:35,680 Speaker 3: winning its anti trust fight against Alphabet over the Google 328 00:16:35,720 --> 00:16:40,240 Speaker 3: Place store. Mark Bergen covers tech for Bloomberg News. Now 329 00:16:40,320 --> 00:16:43,640 Speaker 3: let's turn to geopolitics and the rising stakes for both 330 00:16:43,760 --> 00:16:48,440 Speaker 3: Ukraine and its defense against Russia and Israel's fight against Hamas. Today, 331 00:16:48,760 --> 00:16:51,920 Speaker 3: Ukrainian President Vladimir Zelenski will continue to press his case 332 00:16:51,960 --> 00:16:56,280 Speaker 3: for renewed aid multi billion dollars in aid to his country. 333 00:16:56,280 --> 00:16:59,160 Speaker 3: He's going to be speaking directly to lawmakers in Washington, 334 00:16:59,280 --> 00:17:02,840 Speaker 3: Whileen is warning Israel that public opinion could shift if 335 00:17:02,880 --> 00:17:06,960 Speaker 3: the war in Gaza continues to take a severe civilian toll. 336 00:17:07,000 --> 00:17:09,440 Speaker 3: And for more on all this, we're joined by Bloomberg 337 00:17:09,440 --> 00:17:12,600 Speaker 3: News Senior editor Derek Wallbank. Derek, I know you've been 338 00:17:12,680 --> 00:17:15,600 Speaker 3: monitoring President Zelenski's trip to Washington. 339 00:17:15,640 --> 00:17:16,600 Speaker 1: This is day two. 340 00:17:16,800 --> 00:17:20,159 Speaker 3: He's been speaking to the National Defense University, the International 341 00:17:20,200 --> 00:17:23,879 Speaker 3: Monetary Fund as well. What should we expect as the 342 00:17:24,000 --> 00:17:28,000 Speaker 3: Ukrainian president meets today with US President Biden and those 343 00:17:28,080 --> 00:17:30,320 Speaker 3: lawmakers on Capitol Hill. 344 00:17:30,440 --> 00:17:33,320 Speaker 14: Well, I think he's got a very tough job ahead 345 00:17:33,320 --> 00:17:38,280 Speaker 14: of him. The aid to Ukraine is currently stalled amid 346 00:17:39,040 --> 00:17:44,199 Speaker 14: package negotiations over aid to Israel, as well as Republican 347 00:17:44,280 --> 00:17:49,160 Speaker 14: demands for increased border security measures. Zelenski walks into that fight, 348 00:17:49,680 --> 00:17:51,680 Speaker 14: I think, in a much weaker position than he was 349 00:17:51,720 --> 00:17:54,000 Speaker 14: in the last time that he was in Washington. Remember, 350 00:17:54,480 --> 00:17:59,000 Speaker 14: he got received with somewhat rapturous crowds. He had addresses 351 00:17:59,040 --> 00:18:02,879 Speaker 14: to US lawmakers. It was a whole it was a 352 00:18:02,920 --> 00:18:06,160 Speaker 14: whole thing. For lack of a more technical term, it's 353 00:18:06,200 --> 00:18:08,800 Speaker 14: not so much that in case. Right now, I think 354 00:18:08,840 --> 00:18:13,720 Speaker 14: there is rising skepticism, especially on the right, over the 355 00:18:14,000 --> 00:18:17,399 Speaker 14: over the war in general. There is somewhat of an 356 00:18:17,400 --> 00:18:22,520 Speaker 14: increased appetite in Washington. You know, maybe not a majority opinion, 357 00:18:22,600 --> 00:18:26,520 Speaker 14: but certainly a sizeable opinion uh that that this war 358 00:18:27,440 --> 00:18:31,840 Speaker 14: needs to find an off ramp. And unfortunately for Zelenski, 359 00:18:32,880 --> 00:18:35,000 Speaker 14: he's caught a bit between a rock and a hard place, 360 00:18:35,080 --> 00:18:39,320 Speaker 14: because on the on the Washington side, you're talking about 361 00:18:39,359 --> 00:18:43,560 Speaker 14: a difficulty with Republicans who, in fairness, may be trying 362 00:18:43,600 --> 00:18:48,200 Speaker 14: to simply extract something rather than actually hold this up indefinitely. 363 00:18:49,240 --> 00:18:52,040 Speaker 14: On the other side, in Europe, you've got he's having 364 00:18:52,119 --> 00:18:56,760 Speaker 14: problems with Victor ORBN in h in Hungary, gumming up 365 00:18:56,840 --> 00:18:59,320 Speaker 14: some of the aids there. And between those two things, 366 00:18:59,359 --> 00:19:02,679 Speaker 14: you are seeing new aid pledges to Ukraine reach a 367 00:19:02,680 --> 00:19:06,760 Speaker 14: substantial low compared to where it was earlier this year 368 00:19:07,240 --> 00:19:09,040 Speaker 14: or even late last year. 369 00:19:09,359 --> 00:19:12,400 Speaker 3: I mean, we're hearing some of the rhetoric from President 370 00:19:12,440 --> 00:19:15,760 Speaker 3: Scolensky sounding quite a bit more dire if he doesn't 371 00:19:15,800 --> 00:19:18,280 Speaker 3: get this aid, talking about the threat it could post 372 00:19:18,280 --> 00:19:23,080 Speaker 3: a democracy if Russia's hand were to be improved by 373 00:19:23,440 --> 00:19:27,040 Speaker 3: Ukraine not receiving this aid. 374 00:19:26,800 --> 00:19:30,000 Speaker 1: What about that? Could that change any minds? 375 00:19:30,240 --> 00:19:33,240 Speaker 3: Do you think on Capitol Hill, this idea that this 376 00:19:33,440 --> 00:19:36,399 Speaker 3: is still a fight for democracy in Ukraine. 377 00:19:37,320 --> 00:19:39,560 Speaker 14: Yeah, well, I think the number one mind that I'm 378 00:19:39,600 --> 00:19:44,240 Speaker 14: particularly interested to see is the new US House speaker. Right, 379 00:19:44,280 --> 00:19:46,840 Speaker 14: remember that, if we go all the way back, and 380 00:19:46,880 --> 00:19:49,080 Speaker 14: it's not actually that far back, but to when Kevin 381 00:19:49,119 --> 00:19:51,600 Speaker 14: McCarthy was speaker, there were some talks in the last 382 00:19:51,600 --> 00:19:55,919 Speaker 14: funding as part of the last funding negotiations that Ukraine 383 00:19:55,960 --> 00:19:57,960 Speaker 14: aid would be brought up at some point. Then, of 384 00:19:58,000 --> 00:20:01,119 Speaker 14: course McCarthy stops being speaker. All of his promises go 385 00:20:01,600 --> 00:20:04,040 Speaker 14: right out the window, and in comes Mike Johnson, the 386 00:20:04,119 --> 00:20:08,960 Speaker 14: Louisiana Well, Johnson was quite a Ukraine skeptic before he 387 00:20:09,080 --> 00:20:12,679 Speaker 14: took the speakership and before he started getting those confidential 388 00:20:12,720 --> 00:20:17,639 Speaker 14: security briefings that speakers do get. Johnson was telling the 389 00:20:17,640 --> 00:20:21,240 Speaker 14: Wall Street Journal CEO Forum just last night that he's 390 00:20:21,280 --> 00:20:24,680 Speaker 14: going to have a message for his Zelenski to basically say, look, 391 00:20:25,160 --> 00:20:27,600 Speaker 14: we've got to get all of this done together. He 392 00:20:27,600 --> 00:20:29,000 Speaker 14: said he's going to tell them the same thing in 393 00:20:29,040 --> 00:20:33,080 Speaker 14: private that he's saying in public. Sure, fine, that's all good. 394 00:20:33,119 --> 00:20:36,080 Speaker 14: The question that I'm really interested in it is what 395 00:20:36,280 --> 00:20:40,359 Speaker 14: is Mike Johnson's price for putting something on the house floor. 396 00:20:40,920 --> 00:20:44,040 Speaker 14: If he put something on the house floor, it's probably 397 00:20:44,080 --> 00:20:47,800 Speaker 14: going to pass. That's just the math of it. But 398 00:20:47,880 --> 00:20:52,320 Speaker 14: Johnathan have got a difficulty because he's got to deal 399 00:20:52,400 --> 00:20:55,640 Speaker 14: with his conference, and his conference is going to want 400 00:20:55,640 --> 00:20:58,240 Speaker 14: things out of this how much? That's the critical question. 401 00:20:58,520 --> 00:21:01,400 Speaker 1: What do you make of the you shift in rhetoric? 402 00:21:01,440 --> 00:21:04,439 Speaker 3: It seems like we're hearing from President Biden when it 403 00:21:04,520 --> 00:21:08,280 Speaker 3: comes to the stance toward Israel and the mounting civilian 404 00:21:08,320 --> 00:21:08,840 Speaker 3: death toll. 405 00:21:10,480 --> 00:21:15,680 Speaker 14: Well, Joe Biden warned at a Honika reception that a 406 00:21:15,760 --> 00:21:19,560 Speaker 14: public opinion can shift on the war. Certainly, I think 407 00:21:19,600 --> 00:21:22,520 Speaker 14: Biden has seen public opinion kind of sour a little 408 00:21:22,520 --> 00:21:24,520 Speaker 14: bit on his own handling. Some of that is from 409 00:21:24,520 --> 00:21:29,440 Speaker 14: within his own party. Some of his big supporters are 410 00:21:29,520 --> 00:21:32,919 Speaker 14: are disappointed with how closely he has tied himself to Israel. 411 00:21:32,960 --> 00:21:35,400 Speaker 14: At the same point, some people on the other side, 412 00:21:35,400 --> 00:21:37,560 Speaker 14: of the more central side of the Democratic Party would 413 00:21:37,560 --> 00:21:40,160 Speaker 14: say he hasn't done it enough. So he is in 414 00:21:40,240 --> 00:21:43,639 Speaker 14: a very difficult political position on this, But as a 415 00:21:43,680 --> 00:21:47,120 Speaker 14: matter of straight fact, he is right. You know, there 416 00:21:47,680 --> 00:21:51,560 Speaker 14: is a risk as Israel prosecutes the war that the 417 00:21:51,720 --> 00:21:58,080 Speaker 14: mounting civilian tolls could create a public a public relations 418 00:21:58,160 --> 00:22:00,280 Speaker 14: problem for Israel in some of the country is that 419 00:22:00,320 --> 00:22:03,520 Speaker 14: are backing them up, specifically in the United States. So 420 00:22:03,680 --> 00:22:05,399 Speaker 14: that is a warning that he's been trying to do. 421 00:22:05,720 --> 00:22:07,440 Speaker 14: But the problem is is that if you try, and 422 00:22:07,560 --> 00:22:10,440 Speaker 14: politically speaking here, if you try and have it both ways, 423 00:22:10,440 --> 00:22:13,280 Speaker 14: sometimes you wind up having it neither way. And the 424 00:22:13,280 --> 00:22:16,159 Speaker 14: White House right now doesn't really have a ton of 425 00:22:16,240 --> 00:22:19,840 Speaker 14: friends across the political spectrum with how it's been handling this, 426 00:22:20,200 --> 00:22:23,040 Speaker 14: because each side would say that somebody else is doing 427 00:22:23,080 --> 00:22:25,000 Speaker 14: it better or that they're not doing quite enough. 428 00:22:26,960 --> 00:22:30,040 Speaker 18: This is Bloomberg Daybreak Today, your morning brief on the 429 00:22:30,080 --> 00:22:33,480 Speaker 18: stories making news from Wall Street to Washington and beyond. 430 00:22:33,760 --> 00:22:36,520 Speaker 2: Look for us on your podcast feed at six am 431 00:22:36,600 --> 00:22:40,280 Speaker 2: Eastern each morning, on Apple, Spotify, and anywhere else you 432 00:22:40,320 --> 00:22:41,520 Speaker 2: get your podcasts. 433 00:22:41,640 --> 00:22:44,320 Speaker 18: You can also listen live each morning starting at five 434 00:22:44,359 --> 00:22:46,960 Speaker 18: am Wall Street Time on Bloomberg eleven three to zero 435 00:22:47,000 --> 00:22:49,840 Speaker 18: in New York, Bloomberg ninety nine to one in Washington, 436 00:22:49,960 --> 00:22:52,840 Speaker 18: Bloomberg one oh six to one in Boston, and Bloomberg 437 00:22:52,920 --> 00:22:54,600 Speaker 18: ninety sixty in San Francisco. 438 00:22:54,960 --> 00:22:58,120 Speaker 2: Our flagship New York station is also available on your 439 00:22:58,200 --> 00:23:03,600 Speaker 2: Amazon Election devices. Just say Alexa play Bloomberg eleven thirty plus. 440 00:23:03,640 --> 00:23:07,040 Speaker 18: Listen coast to coast on the Bloomberg Business app, Serious XM, 441 00:23:07,160 --> 00:23:10,280 Speaker 18: the iHeartRadio app, and on Bloomberg dot Com. 442 00:23:10,280 --> 00:23:12,400 Speaker 1: I'm Nathan Hager and I'm Karen Moscow. 443 00:23:12,600 --> 00:23:15,359 Speaker 2: Join us again tomorrow morning for all the news you 444 00:23:15,480 --> 00:23:18,680 Speaker 2: need to start your day right here on Bloomberg Daybreak