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Speaker 1: Good morning.

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Speaker 2: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 2: stories we're following today.

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Speaker 3: We begin in Detroit with the latest on a possible

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Speaker 3: auto workers strike. Even a brief work stoppage could cost

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Speaker 3: the US economy billions. Bloomberg's Ed Cory has the latest

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Speaker 3: on the negotiations from Detroit.

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Speaker 4: The UAW was asking for a forty percent raise for

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Speaker 4: its members, sources tell Bloomberg gets lowered that demand slightly,

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Speaker 4: asking for a series of increases over nearly five years

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Speaker 4: that would start with an eighteen percent boost, then alternating

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Speaker 4: between five and four percent. But automakers say that would

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Speaker 4: boost labor costs so high it would threaten their viability.

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Speaker 4: General motors Ford and Stilantis are facing a contracted deadline

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Speaker 4: just before midnight Thursday for nearly one hundred and fifty

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Speaker 4: thousand US hourly workers in Detroit. Ed Corey Bloomberg Radio Okay.

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Speaker 3: Ed, thank you, And if no deal is reached by

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Speaker 3: this Thursday, could cut US GDP by five point six

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Speaker 3: billion dollars and push the Michigan economy into a recession.

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Speaker 5: That's according to Anderson Economic Group.

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Speaker 2: Meanwhile, in Silicon Valley this morning, Nathan. Apple will on

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Speaker 2: veil it's new iPhone fifteen Pro today, and it comes

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Speaker 2: at a critical time for the tech giant as it

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Speaker 2: aims to pull out of a smartphone sales slump. Bloomberg

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Speaker 2: Chief Tech correspond if Mark German tells us what else

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Speaker 2: we could expect today.

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Speaker 6: You'll see four new iPhone fifteen models, too low and

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Speaker 6: too high end, both in the same six point one

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Speaker 6: inch and six point seven in screen sizes. You'll see

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Speaker 6: a new titanium design for the iPhone fifteen Prome promacs.

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Speaker 6: You'll see on those higher end phones, a better battery life,

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Speaker 6: a lighter frame in the A seventeen chip built on

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Speaker 6: the new three and Animeter production process, so a little

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Speaker 6: leg up on what China's got in their new Wallwey devices.

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Speaker 6: The Apple Watch upgrades will be very minor. And then

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Speaker 6: on the AirPods, you'll see a move to USBC that

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Speaker 6: new charging standard, which is also going to be present

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Speaker 6: on all four new iPhone models.

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Speaker 2: And that's Bloomberg's Mark German, who says Apple is also

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Speaker 2: contending with rising pressure in China due to a government

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Speaker 2: worker iPhone ban, and.

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Speaker 3: We have more news out of Apple ahead of the

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Speaker 3: product launch, Karen Bloomberg News is learning for the first

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Speaker 3: time the iPhone maker plans to make in India built

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Speaker 3: iPhone fifteen available in the South Asian country at the

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Speaker 3: unveiling later today. The entire event kicks off at Apple's

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Speaker 3: Coopertino headquarters at one pm Wall Street time.

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Speaker 7: Well.

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Speaker 2: Also in the tech space, Nathan, the appetite for all

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Speaker 2: things ships continues to grow, as we're seeing with the

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Speaker 2: initial public offering of Armholdings. The IPO for ARM is

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Speaker 2: oversubscribed ten times and sources a banker's plan to stop

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Speaker 2: taking orders by this afternoon, but still plans to price

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Speaker 2: it shares tomorrow. Bloomberg Markets editor Eddie vanderwald says the

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Speaker 2: decision to close bugs early suggests demand for the chip

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Speaker 2: designer is strong.

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Speaker 8: I think that this is a real test case for

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Speaker 8: investor demand for broader tech and for the AI story.

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Speaker 8: And at the moment, looking just at how the IPO

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Speaker 8: seems to be going off, it looks like it is,

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Speaker 8: you know, very strong still despite rising interest rate.

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Speaker 2: Now no, it's Bloomberg's Eddie vanderwaldt who says ARM stock

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Speaker 2: offering is set to get under way later this week.

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Speaker 3: All right, sticking in the tech sec to return to

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Speaker 3: Elon Musk Karen. A new biography shows the world's richest

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Speaker 3: man often ignored please to stop alienating advertisers. The new

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Speaker 3: biography from Walter Isaacson states the billionaire owner of X

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Speaker 3: formerly Twitter, has a string of wealthy advisors he habitually ignores.

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Speaker 3: One of those, Warner brothers had David Zaslov caution Musk

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Speaker 3: about his self destructive behaviors that were spooking advertisers.

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Speaker 5: According to Isaacson's book.

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Speaker 3: The news follows yesterday's pop in Tesla stocket jumped ten

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Speaker 3: percent after Morgan Stanley said the company's Dojo supercomputer could

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Speaker 3: boost Tesla's value by to five hundred billion dollars. Checking

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Speaker 3: shares of the Elon Musk owned ev maker right now,

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Speaker 3: they are down about four tenths of one percent.

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Speaker 2: Meanwhile, Nathan Oversees This morning, shares of Chinese property giant

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Speaker 2: Country Garden rallied after Reuters reported that a stressed developer

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Speaker 2: wont approval from creditors to extend repayment on six YU

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Speaker 2: one bonds by three years. Sources say the deadline for

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Speaker 2: votes on twoabate securities will be pushed back into later Tuesday.

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Speaker 2: Country Garden has so far void a defaulting, but recently

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Speaker 2: Warren still could after posting a record first half loss

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Speaker 2: of almost seven billion dollars.

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Speaker 3: Also happening overseas this morning, Karen, Russian President Vladimir Putin

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Speaker 3: prepares to meet with Kim Jong un. The luxury armored

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Speaker 3: train of the North Korean leader crossed into Russian territory

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Speaker 3: earlier today. State media in North Korea and Russia say

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Speaker 3: the two would meet, but no official schedules been released.

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Speaker 3: The meeting offers a chance for Putin to obtain weapons

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Speaker 3: to fuel his war in Ukraine, and Kim a chance

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Speaker 3: to win assistance for his beleaguered economy so as to

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Speaker 3: expand his ability to deliver a nuclear strike.

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Speaker 2: Well on the bank sector, Nathan, we're hearing scathing criticism

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Speaker 2: of regulators from Jamie Diamond, the JP, Morgan Sherman and

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Speaker 2: CEO took aim at higher capital requirement's US regulators proposed

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Speaker 2: for the banking industry, saying he would love to know

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Speaker 2: what they really want to accomplish.

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Speaker 9: The Federal Reserve humility. They're the ones that told the

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Speaker 9: world rach On going up, and it wasn't the Federal

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Speaker 9: Reserve in general, is each one of them independently factors

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Speaker 9: each central bank, so ify with them might have a

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Speaker 9: little more humility oversto like this, JP.

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Speaker 2: Morgan, CEO Jamie Diamond made the comments at the Barclays

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Speaker 2: Global Financial Services Conference in New York. He's repeatedly called

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Speaker 2: the proposal hugely disappointing and I mean and.

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Speaker 3: I've tacking COVID cases, Karen, We're getting closer to a

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Speaker 3: new vaccination. Bloomberg's head Baxter has that.

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Speaker 10: The FDA has approved the Pfizer and Moderna vaccines as

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Speaker 10: there's a tick up and late summer surge of the virus.

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Speaker 10: Peter Marks of the FDA says the public can be

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Speaker 10: assured that the update vaccines are safe now. It should

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Speaker 10: be noted these are not boosters. They're updated vaccines that

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Speaker 10: protect against the new variants, better approved for ages twelve

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Speaker 10: and up. The CDC is supposed to meet today to

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Speaker 10: possibly issue guidance. I'm at Baxter Bloomberg Radio.

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Speaker 3: Time Now to take a look at some of the

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Speaker 3: other stories making news around the world.

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Speaker 5: With that, we're joined by Bloomberg's Michael Barr.

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Speaker 11: Good morning, Michael, Good morning, Nathan escape Pennsylvania convict and

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Speaker 11: Nello cambal Conte is still on the loose and now

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Speaker 11: believed armed. It's been about two weeks after he was

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Speaker 11: able to breach the police perimeter in Chester County. Authority

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Speaker 11: say Cavalcante managed to steal a van all to his

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Speaker 11: appearance and drive nearly twenty miles north over the weekend.

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Speaker 11: Deputy US Marshal Robert Clark.

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Speaker 12: We expect to catch him as soon as soon as possible,

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Speaker 12: but we're not going to put our ducks in a

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Speaker 12: row and say, hey, we're going to have him by

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Speaker 12: this Thursday. We're going to plan for a long investigation

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Speaker 12: because we don't want to get caught planning for an

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Speaker 12: immediate arrest and then we're not prepared later down the line.

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Speaker 11: Marshall Robert Clark says a homeowner shot at a subject

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Speaker 11: recently that matched the description of cavil contact. Lawyers for

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Speaker 11: Donald Trump have asked the federal judge presiding over his

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Speaker 11: election subversion case in Washington to recuse herself. They say

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Speaker 11: Judge Tanya Chutkins past public statements about the former president

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Speaker 11: and his connection to the January sixth riot at the

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Speaker 11: US Capitol call into question whether she can be fair.

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Speaker 11: It has been twenty two years since nearly three thousand

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Speaker 11: people were killed during the September eleventh attacks in New York.

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Speaker 11: At the memorial where the World Trade Center once stood,

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Speaker 11: the names of the victims are read aloud and bells told,

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Speaker 11: marking the moments that the hijacked airplanes hit the Twin Towers,

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Speaker 11: the Pentagon, and a field in Shanksville, Pennsylvania. This girl

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Speaker 11: honored the memory of her grandfather and.

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Speaker 13: My grandfather, Edward Joseph, Papa, Grandpaetti. Even though I never

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Speaker 13: got to meet you, I feel like I've known you

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Speaker 13: forever from stories and videos and pictures. It's almost as

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Speaker 13: if you're still here.

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Speaker 11: Mourners also offered thanks to the first responders. A new

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Speaker 11: study suggests the dangers of lead exposure have been gravely underestimated.

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Speaker 11: According to the World Bank, exposure to lead in twenty

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Speaker 11: nineteen may have cost five and a half million deaths

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Speaker 11: worldwide from cardiovascular disease and IQs in children under five.

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Speaker 11: Pure Earth President Richard Fuller worked with the World Bank

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Speaker 11: on the study.

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Speaker 14: When they look at all of the different aspects of

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Speaker 14: cardiovascular disease, lead poisoning is just the globally as smoking

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Speaker 14: or cholesterol.

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Speaker 11: Most of the effects were found in items like cookwear

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Speaker 11: made from recycled materials or lad glazed pottery. The study

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Speaker 11: is published in the Lanced Planetary Health journal. Global News

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Speaker 11: twenty four hours a day, powered by more than twenty

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Speaker 11: seven hundred journalist and analysts in over one hundred and

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Speaker 11: twenty countries. I'm Michael Barr. This is Bloomberg Nag.

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Speaker 5: Thank you, Michael.

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Speaker 3: Time for the Bloomberg Sports Update. Here's John Stanshower to day.

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Speaker 15: To the night where Jets fans emotions went from agony

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Speaker 15: to ecstasy. The much hype Jets debut of Aaron Rodgers

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Speaker 15: lasted all of four snaps. He threw one pass, he

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Speaker 15: got sacked on his leg, he left the game, and

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Speaker 15: by all accounts, he's not coming back this season, a

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Speaker 15: bitterly cruel blow after so much excitement surrounding Rodgers' arrival,

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Speaker 15: and left the Jets once again with Zach Wilson, and

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Speaker 15: he threw a bad first half interception, but he played

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Speaker 15: better second half through a touchdown pass that Jets rallied

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Speaker 15: from ten down against the Bill.

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Speaker 5: The game went to overtime.

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Speaker 4: Getting away a line drive kick of Sam Martin.

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Speaker 7: Gibson runs under it after.

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Speaker 11: Ten thirty five, starts to his left, gets to the forty,

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Speaker 11: turns the cornum.

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Speaker 7: Cut the forty five dixton cluck is it fun?

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Speaker 5: Not the forties?

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Speaker 7: Not the Bills?

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Speaker 5: Thirty hits out the twenties.

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Speaker 10: Stunt a step to the ten to the five touchdown.

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Speaker 5: Hut touchdown, This game is over.

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Speaker 15: ESPN New York to call the Xavier Gibbson sixty five

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Speaker 15: yard return.

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Speaker 5: The Jets stunned the Bills twenty two to sixteen. Tommy

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Speaker 5: Famm won.

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Speaker 15: Several Mets traded at the deadline back at City Field

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Speaker 15: with Arizona had a single double, a game time home run.

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Speaker 15: Diamondbacks scored in the ninth top the Mets four to three.

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Speaker 15: Yankees and Red Sox reigned out in Boston doubleheader. Today,

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Speaker 15: BIGS series help decide who gets the last wildcard of

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Speaker 15: the America Lague. Texas won ten for at Toronto. The

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Speaker 15: Jays lead by a half game. The NBA will vote

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Speaker 15: today on whether to start finding teams who rest their

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Speaker 15: stars in national TV games. Lebron James Antony wants to

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Speaker 15: play the Olympics next summer in Paris. Calling it his

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Speaker 15: last dance, and he has said to be recruiting Kevin

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Speaker 15: Durant and Steph Curry.

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Speaker 11: The US just.

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Speaker 15: Finished fourth at the World Cup. John Stashedward Bloomberg Sports.

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Speaker 16: From coast to coast, from New York to San Francisco,

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Speaker 16: Boston to Washington, DC, nationwide on SYRIASXAM, the Bloomberg Business app,

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Speaker 16: and Bloomberg dot Com.

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Speaker 5: This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.

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Speaker 3: We are counting down to Apple's latest product launch later

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Speaker 3: today in Coopertino, California. The iPhone maker has been dealing

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Speaker 3: with several negative headlines ahead of it, from China's crackdown

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Speaker 3: on iPhones for government workers to delays for in house chips.

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Speaker 3: So will a next generation iPhone be enough to give

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Speaker 3: Apple more of a lift as we head into the

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Speaker 3: holiday quarter. Let's bring in Alex Webb, who covers the

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Speaker 3: tech industry for US here on Bloomberg Radio. Well, Alex,

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Speaker 3: we did get the headline moments ago that made in

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Speaker 3: India iPhones are going to be available on this launch day.

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Speaker 5: That seems like it could be a big deal.

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Speaker 17: Certainly an interesting narrative for them to be pushing isn't

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Speaker 17: it the You know, there's been gradual pressure over time

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Speaker 17: on the Chinese supply chain, of course, and Apple has

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Speaker 17: been doing a huge amount to try to de risk

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Speaker 17: its exposure there, so they've been expanding the production capabilities

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Speaker 17: in India. That also helps them in the Indian market

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Speaker 17: because if you want to have your own retail outlets there,

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Speaker 17: you need to be manufacturing domestically, and it is a

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Speaker 17: market where they see huge amount of potential. But let's

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Speaker 17: put that in little bit of context. Right in the

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Speaker 17: most recent data we have from March trailing twelve month

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Speaker 17: revenue is about six billion dollars in India. In China

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Speaker 17: right now, Apple has in the order of Greater China,

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Speaker 17: which also gives Taiwan has an eure of seventy four

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Speaker 17: billion dollars in revenue, So India has a long way

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Speaker 17: to catch up. The iPhones that are going to be

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Speaker 17: on sale made in India in the next generation, only

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Speaker 17: a small portion of them will be coming from that market.

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Speaker 17: The vast majority will still be made in China. So

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Speaker 17: it is a change, it isn't It isn't a sea

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Speaker 17: change just yet.

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Speaker 3: Do you expect it to be a sea change at

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Speaker 3: some point, given some of the headwinds that Apple is

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Speaker 3: facing in China right now, it.

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Speaker 17: Could well be. But that time is not a year

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Speaker 17: away or two years away. It is five to ten

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Speaker 17: years away, right. It takes a long time to build

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Speaker 17: up your supply chain. China has got not just the

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Speaker 17: factories to make the iPhones, it has the factories that

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Speaker 17: make the components that supply the iPhones. It has you know,

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Speaker 17: the ability to mobilize millions of people to work in

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Speaker 17: these factories at peak production season. That is not somewhere

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Speaker 17: that India has got to yet. You know, if you

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Speaker 17: go to Shanzhen, you can see in that just in

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Speaker 17: that you know, remarkable city, the how everything is there.

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Speaker 17: Everything you need to make a smartphone pretty much is there,

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Speaker 17: with the exception of the top of the line chips

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Speaker 17: that the US is making it high to import. So,

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Speaker 17: you know, Tim Cook has talked about India being at

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Speaker 17: an inflection point.

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Speaker 7: That's you know, slightly empty language.

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Speaker 17: Because China was at six billion in revenue about fifteen

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Speaker 17: years ago, right so after that point it did massively accelerate.

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Speaker 7: A lot needs to happen in India for it to

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Speaker 7: get to that point.

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Speaker 3: Well, what does it tell you, Alex, that Apple is

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Speaker 3: leaking out this kind of news about the supply chain

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Speaker 3: and about the sourcing of next generation iPhones as the

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Speaker 3: big the big thing for us to latch onto, as

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Speaker 3: opposed to something along the lines of vision pro or

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Speaker 3: details about what the next iPhone's going to have in it.

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Speaker 17: Well, I'm going to push back on that thinking because

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Speaker 17: it's I think you give our colleagues in India some

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Speaker 17: credit for breaking this story. It's not necessarily a handout

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Speaker 17: from the Apple pr machine that there's probably a good

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Speaker 17: deal reporting in there, which sure, you know, we don't

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Speaker 17: know that this is something that Apple wanted to push.

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Speaker 17: It is something that our colleagues have reported from their sources.

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Speaker 17: So if they mention it, right, I think it's highly

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Speaker 17: unlikely they will because if you you know, they don't

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Speaker 17: like to advertise on their devices that they are not

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Speaker 17: necessarily made in the US. But if they were to

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Speaker 17: mention it somehow in the course of the presentation, that

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Speaker 17: would be remarkable.

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Speaker 7: But that's not the message we have just yet.

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Speaker 3: Well, I guess what I'm getting at, Alex is are

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Speaker 3: we expecting any more surprises from Apple in terms of

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Speaker 3: what the components of the devices are going to be

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Speaker 3: you know what make what helps the iPhone fifteen stand

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Speaker 3: out from past iterations of this device?

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Speaker 5: We got about a minute left.

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Speaker 17: I mean, being Frank's probably not a huge amount that's

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Speaker 17: going to stand out from previous versions. The thing that's

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Speaker 17: interesting is little stuffer around the edges, and it actually

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Speaker 17: the edge is very much one thing, a thinner bezel

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Speaker 17: at the end edge of the phone. And also the

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Speaker 17: pro lineup is going to be made out of titanium,

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Speaker 17: not out of steel. That should let them push a

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Speaker 17: higher price point of pricing is crucial. Right now, they're

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Speaker 17: not selling as many units, or the pace of growth

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Speaker 17: in unit sales as massively slow. They're therefore trying to

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Speaker 17: squeeze more money out of the units they do sell.

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Speaker 17: New materials help them achieve that.

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Speaker 3: Do you think this product launch is going to be

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Speaker 3: enough to give Apple a boost heading into the holiday quarter.

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Speaker 17: I'm going to certainly give it a boost. Right this

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Speaker 17: is the biggest quarter for them. Every time, the question

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Speaker 17: is is it above and beyond expectations? You'll hear all

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Speaker 17: sorts of back and forth or their cutting production that

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Speaker 17: Ultimately the fact is because the services business has been

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Speaker 17: so good, people keep buying their new iPhones, and particularly

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Speaker 17: feel freshening at the high end, where there's less price

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Speaker 17: sensitivity that tends to support the grocery.

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