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Speaker 1: This is Bloomberg daybak you for this Tuesday, the sixth

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Speaker 1: of June in London.

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Speaker 2: Coming up today, Apple's Vision for the Future tech giant

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Speaker 2: launches a three and a half thousand dollars mixed reality headset.

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Speaker 1: Crypto clampdown, the SEC accuses Finance of engaging in a

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Speaker 1: web of.

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Speaker 2: Deception, a new offensive, Russia and Ukraine engage in fierce

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Speaker 2: frontline fighting.

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Speaker 3: And make or break vote for the CBI and Twitter

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Speaker 3: ad sales tank. Those are the stories we're looking at

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Speaker 3: in today's papers.

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Speaker 1: And I'm Leanne Gerrins Plus in danger of a short circuit.

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Speaker 1: Tech firms warn the UK is losing its business alliure.

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Speaker 4: That's all straight ahead on Bloomberg Daybreak Europe. The business

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Speaker 4: news you need to start your day in just one

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Speaker 4: fifteen minute podcast on Apple, Spotify, the Bloomberg Business App

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Speaker 4: and everywhere you get your podcasts.

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Speaker 2: Good morning, I'm Stephen Carroll and I'm Caroline Hecker.

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Speaker 1: Here are the stories that we're following today.

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Speaker 2: Apple has launched its long awaited mixed reality headset, but

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Speaker 2: it comes with the hefty price tag of just under

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Speaker 2: three five hundred dollars. The new Vision Pro will go

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Speaker 2: on sale in the US early next year. Apple CEO

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Speaker 2: Tim Cook says it's a game changer.

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Speaker 5: So in the same way that mac introduced us to

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Speaker 5: personal computing and iPhone introduced us to mobile computing, Apple

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Speaker 5: Vision Pro will introduce us to spatial computing. This marks

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Speaker 5: the beginning of a journey that will bring a new

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Speaker 5: dimension to powerful personal technology.

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Speaker 2: But despite Cook's soaring rhetoric, investors were left unimpressed by

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Speaker 2: the high price tag, with shares slipping from record highs

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Speaker 2: after the announcement. The product is Apple's first major new

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Speaker 2: category since it began selling smartwatches in twenty fifteen.

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Speaker 1: The SEC has accused Binance of engaging in a quote

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Speaker 1: extensive web of deception and a calculated evasion of the law.

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Speaker 1: The US regulator also alleges that the crypto exchange misled

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Speaker 1: investors about its trading controls. Bloomberg Sue Kenan broke down

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Speaker 1: the claims in the SEC's suit.

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Speaker 6: The SEC alleging that the CEO and Binance itself well

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Speaker 6: aware they were violating securities laws, and this is a

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Speaker 6: theme that the SEC is using, that they were operating

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Speaker 6: in unregistered securities exchange and mishandling customer funds and misleading

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Speaker 6: everyone along the way.

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Speaker 1: Bloomberg sue Keenan there Binance has called the complaint disappointing

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Speaker 1: and says that it will defend the platform vigorously.

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Speaker 2: The Ausi dollar has jumped after the RBA surprise markets

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Speaker 2: by raising its cash rate to twenty five basis points

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Speaker 2: to four point one percent, the highest since April twenty twelve.

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Speaker 2: Commenting on the high, GRBA Governor Philip Blow says some

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Speaker 2: further tightening of monetary policy may be required. Contensus was

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Speaker 2: for the bank to hold STEAE in the light of

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Speaker 2: slowing economic growth.

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Speaker 1: European Central Bank President Christine Leguard says that inflation pressures

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Speaker 1: remain powerful and borrowing costs will be raised further to

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Speaker 1: tackle them. Speaking to EU lawmakers, Leguard reiterated that core

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Speaker 1: price rises remain.

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Speaker 7: Strong, indicators of underlying inflationary pressures remain high, and although

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Speaker 7: some are showing signs off moderation, there is no clear

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Speaker 7: evidence that underlying inflation has peaked.

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Speaker 1: Leguard's comments cement expectations for another interest rate hike at

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Speaker 1: next week's meeting of the euro Area's central Bank.

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Speaker 2: Russian Ukraine are reporting fierce battles along the war's front

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Speaker 2: lines as anticipation mounts for Kiev's long planned counter offensive.

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Speaker 2: According to Deputy Defense Minister Hannahmaliar, Ukrainian forces have advanced

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Speaker 2: around Backmoot, describing the eastern city as the epicenter of hostilities. Whoever,

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Speaker 2: Moscow says its forces defe a new large scale attack

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Speaker 2: in the eastern Dunyatsk region on Monday. Speaking to Bloomberg,

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Speaker 2: former US Special Representative for Ukraine negotiations, Kurt Volker says

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Speaker 2: the counter offensive is underway.

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Speaker 8: People are looking for something that is different from what

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Speaker 8: we will actually see. They're looking for some big movement

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Speaker 8: of tanks rolling across these defensive lines. I think instead

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Speaker 8: what we are seeing is Ukrainian attacks against Russia's logistics infrastructure,

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Speaker 8: the fuel, the ammunition, the roads, the bridges, the rail lines.

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Speaker 2: Monday's claims by Ukraine and Russia have not been independently verified.

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Speaker 1: Now to the UK, technology companies are warning that Britain

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Speaker 1: is losing it's business. Idiot Bloomberg's un Pots reports.

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Speaker 9: The UK is a broken economy for startups and risks

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Speaker 9: falling behind in areas like AI and semiconductors. That's the

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Speaker 9: warning from Tech UK. The lobby group has almost a

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Speaker 9: thousand members, including giants like Apple and Amazon. It says

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Speaker 9: Britain's policies need an urgent overhaul. It calls current regulations

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Speaker 9: both expensive and awkward. It follows on from Microsoft's criticism

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Speaker 9: after the UK Anti trust watchdog blocked its takeover video

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Speaker 9: game maker Activision Blizzard. Tech UK's reports underscores growing doubts

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Speaker 9: over the UK's post Brexit attractiveness at a time when

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Speaker 9: homegrown companies including arm looking abroad for investment opportunities in London,

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Speaker 9: I'm you and Pot's been big day Break Europe.

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Speaker 2: So as there are tap stories on the program this morning.

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Speaker 2: Some of the stories that of quasi though today. Have

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Speaker 2: you noticed the lack of rain?

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Speaker 7: I have?

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Speaker 1: I think I have two passions and they're reflected in

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Speaker 1: this chat, which is gardening. I have definitely noticed the

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Speaker 1: dry spell that London has been going through. It's been days,

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Speaker 1: in fact three weeks.

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Speaker 2: The fourteenth of May was the last time it rained

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Speaker 2: in London.

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Speaker 1: Yeah, it's amazing and the issue, of course is it

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Speaker 1: raises the red flag again. Are we going to get

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Speaker 1: another brutal summer across Europe in terms of droughts and

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Speaker 1: extreme the dry conditions. In fact, the met isn't forecasting

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Speaker 1: any rain for the capsule until the eleventh of June,

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Speaker 1: so still a few more days.

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Speaker 2: Yeah, okay, which is which is good if you're a

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Speaker 2: sun worshipper, but less good when you're thinking about how

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Speaker 2: the city is going to be able to sustain itself

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Speaker 2: with projectory hot weather.

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Speaker 1: Yeah. And my second passion money.

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Speaker 2: Of course, I didn't want to say it. I was

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Speaker 2: like Caroline to passions, weather and money.

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Speaker 1: Are well sought off, I joke. But look, family offices.

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Speaker 1: I love this bit of data. KPMG and the recruitment

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Speaker 1: firm AGRES have basically broken down how much money you

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Speaker 1: can make in charge of one of these family offices.

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Speaker 1: We know that they proliferated, you know, they manage money

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Speaker 1: for you know, the wealthiest families in the world. Apparently

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Speaker 1: forty percent of the CIOs in US family offices and

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Speaker 1: at least a million dollars a year annually. But look

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Speaker 1: at Europe it's only six percent.

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Speaker 2: Wow. I mean, the difference is incredible, And given the

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Speaker 2: prevalence that we've seen of these kind of family officers

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Speaker 2: rising up for so many big figures in finance. Very

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Speaker 2: interesting to see how much those CIOs are being paid

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Speaker 2: in those businesses as well, another factor of the moving

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Speaker 2: financial industry. Let's turn back, though, to the big news

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Speaker 2: from Apple launching what it sees as the next stage

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Speaker 2: in devices spatial computing, with the Vision Pro mixed reality headset.

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Speaker 2: Apple expects to be able to sell about nine hundred

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Speaker 2: thousand units of its Vision Pro in the first year,

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Speaker 2: but at just under three five hundred dollars a piece,

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Speaker 2: some investors are skeptical. We've got Bloomberg's Alex web with

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Speaker 2: us to make sense of all of this. For us,

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Speaker 2: let's talk about the technology itself first, Alex seven years

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Speaker 2: in the making. What is a mixed reality headset.

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Speaker 10: Well, you have virtual reality on one hand, which is immersive.

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Speaker 10: You are in a virtual world in a computer game,

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Speaker 10: for instance. That's one piece. You have augmented reality, which

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Speaker 10: is where you have information superimposed on your natural environment.

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Speaker 10: Is an image of the Eiffel Tower it is, however

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Speaker 10: many hundred meters tall augmented reality. Bring the two together

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Speaker 10: and you get mixed reality. So you actually have a headset,

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Speaker 10: which is it's a screen in front of your eyes.

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Speaker 10: You're behind an actual display, but it can also show

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Speaker 10: you the outside world. And this is what this new

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Speaker 10: headset can do.

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Speaker 1: Okay, three four hundred and ninety nine dollars. I mean

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Speaker 1: I can only imagine if that in the UK and Europe,

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Speaker 1: it's going to cost a little bit more than that

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Speaker 1: if you translate it into sterling. Will consumers spend that

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Speaker 1: that that kind of price tag?

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Speaker 10: I mean, there will certainly be some the kind of

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Speaker 10: three things to remember here are that Apple well Mark German,

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Speaker 10: our colleague has reported that in its first year, which

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Speaker 10: will be next year, it won't be this year, Apple

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Speaker 10: only expects to sell in the order of nine hundred

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Speaker 10: thousand of these, not massive in comparison to the sort

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Speaker 10: of tens of millions of iPhones and it sells every year. Secondly,

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Speaker 10: the way that it pitched this during the presentation, the

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Speaker 10: first real use case it demonstrates was a commercial use case.

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Speaker 10: It was showing it used in the enterprise. That is

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Speaker 10: the clearly the target for now, because companies have deeper

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Speaker 10: pockets than individuals do and maybe can all readily justify this.

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Speaker 10: The third part, then, is the reaction to that, which

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Speaker 10: is shares or investors were disappointed, right, But the moment

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Speaker 10: that they showed that enterprise use case, the shares dropped

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Speaker 10: off a cliff, I say, dropped off a cliff. They

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Speaker 10: lost about two dollars of the one hundred and eighty three.

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Speaker 10: So you know it's Apple's sort of hinting at that.

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Speaker 10: Investors need to be realistic about this. They're not expecting

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Speaker 10: big numbers, it seems, anytime soon.

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Speaker 2: So this is Apple pushing into a new space. There

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Speaker 2: are others already there as it's arriving. Is this a

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Speaker 2: big problem for Meta.

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Speaker 10: In the short term? It's actually like to help Meta, right,

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Speaker 10: because it means that they go, see, this does have

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Speaker 10: a use case, there are things, it is cool, it

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Speaker 10: can be fun, right And of course, because Apple is

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Speaker 10: not going to be coming out with this product until

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Speaker 10: sometime next year, gives it at you know, Facebook, Meta

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Speaker 10: a year of runway after that point, when Apple not

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Speaker 10: only comes to market with the product, comes to market

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Speaker 10: and starts come to market with cheaper versions of the product.

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Speaker 10: You know, Meta's headline headset is about five hundred dollars.

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Speaker 10: This is seven times more expensive than that. They can go, oh, well,

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Speaker 10: you know, we're still offering something which gives you some

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Speaker 10: of that functionality. It will start to come a problem,

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Speaker 10: particularly as developers build apps and services for the Apple

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Speaker 10: headset rather than for the Facebook one.

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Speaker 4: Right.

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Speaker 10: That's Apple's huge advantage. It's got a massive ecosystem of

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Speaker 10: developers building for the iPhone and plenty of others of

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Speaker 10: its the rest of its hardware lineup. Essentially, when if

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Speaker 10: Apple is selling more than Meta is, then developers are

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Speaker 10: going to go would rather build for Apple than for Meta?

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Speaker 1: Yeah, okay, really interesting. Bloomberg's Alex Webb, thank you so

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Speaker 1: much for being with us on that lead Apple story.

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Speaker 2: Up next and Make or Break vote for the CBI

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Speaker 2: and Twitter ad salesk.

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Speaker 4: Now the paper review on blue Bird Daybreak Europe. The

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Speaker 4: news you need to know from today's papers.

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Speaker 1: Us Lean Gowens joins us now for I look through

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Speaker 1: the newspaper, starting with the Times, I feel like we

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Speaker 1: should perhaps call you the CBI correspondent. The headline is

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Speaker 1: CBI members vote on reforms today. But this really is

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Speaker 1: kind of important and in big moments.

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Speaker 3: I feel like I have covered this story a lot,

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Speaker 3: but it is really interesting and it of course affects

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Speaker 3: the businesses here. Caroline, So something we are focusing on

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Speaker 3: and must keep our finger on the pulse. Now members

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Speaker 3: will vote on the future of the Confederation of British Industry,

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Speaker 3: and at least half of them must back Rain Newton

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Speaker 3: Smith's proposals for change. The Times reports members and former

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Speaker 3: members have said privately that they believe the CBI is

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Speaker 3: likely to secure a majority vote. However, members who have

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Speaker 3: left so former members are not allowed to vote in this,

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Speaker 3: something that is concerning some people. The SSE has become

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Speaker 3: the latest member to back the CBI. So the Energy

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Speaker 3: Group has been convinced by this big joint letter that

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Speaker 3: was signed by Siemens, Microsoft UK and ESO that was

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Speaker 3: published in The Times backing the CBIs overhaul, which we

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Speaker 3: have discussed.

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Speaker 1: However, one member.

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Speaker 3: Planning to vote against the plans told The Times its

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Speaker 3: new prospectus was unconvincing. So there are dividing lines here,

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Speaker 3: two different sides, but let's just put this all really simply.

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Speaker 3: Today is make or break for the Business Lobby Group

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Speaker 3: the CBI. It's been around for nearly six decades and

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Speaker 3: it's really fighting for its survival. And this comes after

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Speaker 3: all the scandals that has engulfed the lobby Group and

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Speaker 3: the business Chambers of commerce. Who remember we discussed this yesterday.

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Speaker 3: They appeared to be tooling up as an alternative lobby

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Speaker 3: group for businesses. But four pm today we'll know that

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Speaker 3: results of that vote.

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Speaker 2: Okay, so what that's the latest to watch on the CBI.

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Speaker 2: Let's go to the New York Times nextly on Twitter's

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Speaker 2: US ad sales plunge fifty nine percent as well as continue.

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Speaker 3: I just have to say, this is a scoop from

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Speaker 3: the New York Times, and it's something that is quite

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Speaker 3: eye opening. So billionaire Elon Musk says Twitter's advertising group was.

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Speaker 1: On the upswing.

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Speaker 3: Those were his words, and he also said almost all

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Speaker 3: advertisers have now come back and the social media company

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Speaker 3: could soon become profitable. But not is all, as it seems.

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Speaker 3: Twitter's US advertising revenue for the five weeks from April

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Speaker 3: the first to the first week of May was eighty

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Speaker 3: eight million dollars. Now, that is down fifty nine percent

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Speaker 3: from a year earlier. That's according to this report in

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Speaker 3: the New York Times, and it's citing internal documents that

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Speaker 3: it has seen the company's performance isn't expect to improve

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Speaker 3: anytime soon, and there's this massive concern that advertisers may

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Speaker 3: be spooked by this rise and hate speech and pornography

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Speaker 3: on the network. Now, the firm's new CEO, Linda Yakarino,

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Speaker 3: she started yesterday, so she has this epic mounting to climb.

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Speaker 3: If all is too believed by these documents, The New

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Speaker 3: York Times is seen and the company has actually regularly

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Speaker 3: fallen short of its weekly sales projections. This is also

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Speaker 3: all in the document.

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Speaker 2: Yeah, Bloomberg copinions at Hammond is writing about some of

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Speaker 2: the challenges facing Twitter, and actually his argument is is

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Speaker 2: that for his next trick, Mosque should take Twitter public again.

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Speaker 2: So there's a different time if you want to check

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Speaker 2: on that one.

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Speaker 1: Just lastly, the financial Time says UK grocery spending saws

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Speaker 1: as food prices rise. I mean this sort of inevitable,

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Speaker 1: the prices that people are paying.

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Speaker 3: Well, Caroline, I think we can all feel it when

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Speaker 3: we get to the checkouts of a supermarket. Now, I

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Speaker 3: think we're definitely all feeling that high food inflation which

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Speaker 3: is pushing up gross respending. And now we're getting figures

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Speaker 3: really to back up the way that we're feeling when

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Speaker 3: we get to the till. And this is actually prompting

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Speaker 3: many consumers to cut back on discretion re purchases. So

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Speaker 3: data from the British Retail Consortium and also KPMG shows

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Speaker 3: food sales increase by an annual rate of nine point

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Speaker 3: six percent in May. Now that's well above the twelve

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Speaker 3: month average of six point nine percent, So just a

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Speaker 3: few figures there. Also figures out today highlighted how rising

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Speaker 3: food prices are now the main driver of overall inflation.

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Speaker 3: We do know inflation fell, but not as much as

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Speaker 3: was hoped.

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Speaker 8: Now.

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Speaker 3: Separate data from Barclay's, which monitors almost half of all

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Speaker 3: credit and debit card transactions, also showed foss rising supermarket spending.

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Speaker 3: And I just want to bring you a quote from

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Speaker 3: the head of the retail at KPMG, Paul Martin. He

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Speaker 3: said the grossery sector was the fastest growing part of

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Speaker 3: the consumer wallets, so we're all feeling it. And also

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Speaker 3: I was reading something interesting yesterday. Ald which is one

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Speaker 3: of the supermarkets here in the UK, has said in

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Speaker 3: order to bring down prices, they're going to be switching

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Speaker 3: off their lights.

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Speaker 1: So there's going to be a few lights that are

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Speaker 1: off in the dark.

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Speaker 3: No, you won't be shopping the dot but not all

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Speaker 3: of the lights will beyond, so they're going to try

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Speaker 3: to save on energy because also energy costs are high

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Speaker 3: for the supermarkets.

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Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 2: stories making news from London to Wall Street and beyond.

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Speaker 1: Look for us on your podcast feed every morning on Apple, Spotify,

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Speaker 1: and anywhere else you get your podcasts.

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Speaker 2: You can also listen live each morning on London Dab Radio,

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Speaker 2: the Bloomberg Business app, and Bloomberg dot Com.

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Speaker 1: Our flagship New York station, is also available on your

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Speaker 1: Amazon Alexa devices. Just say elect play Bloomberg eleven thirty.

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Speaker 1: I'm Caroline Hepker and.

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Speaker 2: I'm Stephen Carol. Join us again tomorrow morning for all

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Speaker 2: the news you need to start your day right here

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Speaker 2: on Bloomberg Daybreak Europe