WEBVTT - UAW Labor Negotiations; Apple Set to Unveil New iPhone

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<v Speaker 1>Good morning.

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<v Speaker 2>I'm Nathan Hager and I'm Karen Moscow. Here are the

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<v Speaker 2>stories we're following today.

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<v Speaker 3>We begin in Detroit with the latest on a possible

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<v Speaker 3>auto workers strike. Even a brief work stoppage could cost

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<v Speaker 3>the US economy billions. Bloomberg's Ed Cory has the latest

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<v Speaker 3>on the negotiations from Detroit.

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<v Speaker 4>The UAW was asking for a forty percent raise for

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<v Speaker 4>its members, sources tell Bloomberg gets lowered that demand slightly,

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<v Speaker 4>asking for a series of increases over nearly five years

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<v Speaker 4>that would start with an eighteen percent boost, then alternating

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<v Speaker 4>between five and four percent. But automakers say that would

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<v Speaker 4>boost labor costs so high it would threaten their viability.

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<v Speaker 4>General motors Ford and Stilantis are facing a contracted deadline

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<v Speaker 4>just before midnight Thursday for nearly one hundred and fifty

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<v Speaker 4>thousand US hourly workers in Detroit. Ed Corey Bloomberg Radio Okay.

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<v Speaker 3>Ed, thank you, And if no deal is reached by

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<v Speaker 3>this Thursday, could cut US GDP by five point six

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<v Speaker 3>billion dollars and push the Michigan economy into a recession.

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<v Speaker 5>That's according to Anderson Economic Group.

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<v Speaker 2>Meanwhile, in Silicon Valley this morning, Nathan. Apple will on

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<v Speaker 2>veil it's new iPhone fifteen Pro today, and it comes

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<v Speaker 2>at a critical time for the tech giant as it

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<v Speaker 2>aims to pull out of a smartphone sales slump. Bloomberg

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<v Speaker 2>Chief Tech correspond if Mark German tells us what else

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<v Speaker 2>we could expect today.

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<v Speaker 6>You'll see four new iPhone fifteen models, too low and

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<v Speaker 6>too high end, both in the same six point one

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<v Speaker 6>inch and six point seven in screen sizes. You'll see

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<v Speaker 6>a new titanium design for the iPhone fifteen Prome promacs.

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

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<v Speaker 6>a lighter frame in the A seventeen chip built on

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<v Speaker 6>the new three and Animeter production process, so a little

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

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<v Speaker 6>The Apple Watch upgrades will be very minor. And then

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<v Speaker 6>on the AirPods, you'll see a move to USBC that

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<v Speaker 6>new charging standard, which is also going to be present

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<v Speaker 6>on all four new iPhone models.

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<v Speaker 2>And that's Bloomberg's Mark German, who says Apple is also

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<v Speaker 2>contending with rising pressure in China due to a government

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<v Speaker 2>worker iPhone ban, and.

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<v Speaker 3>We have more news out of Apple ahead of the

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<v Speaker 3>product launch, Karen Bloomberg News is learning for the first

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<v Speaker 3>time the iPhone maker plans to make in India built

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<v Speaker 3>iPhone fifteen available in the South Asian country at the

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<v Speaker 3>unveiling later today. The entire event kicks off at Apple's

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<v Speaker 3>Coopertino headquarters at one pm Wall Street time.

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<v Speaker 7>Well.

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<v Speaker 2>Also in the tech space, Nathan, the appetite for all

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<v Speaker 2>things ships continues to grow, as we're seeing with the

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<v Speaker 2>initial public offering of Armholdings. The IPO for ARM is

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<v Speaker 2>oversubscribed ten times and sources a banker's plan to stop

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<v Speaker 2>taking orders by this afternoon, but still plans to price

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<v Speaker 2>it shares tomorrow. Bloomberg Markets editor Eddie vanderwald says the

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<v Speaker 2>decision to close bugs early suggests demand for the chip

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<v Speaker 2>designer is strong.

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<v Speaker 8>I think that this is a real test case for

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<v Speaker 8>investor demand for broader tech and for the AI story.

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<v Speaker 8>And at the moment, looking just at how the IPO

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<v Speaker 8>seems to be going off, it looks like it is,

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<v Speaker 8>you know, very strong still despite rising interest rate.

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<v Speaker 2>Now no, it's Bloomberg's Eddie vanderwaldt who says ARM stock

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<v Speaker 2>offering is set to get under way later this week.

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<v Speaker 3>All right, sticking in the tech sec to return to

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<v Speaker 3>Elon Musk Karen. A new biography shows the world's richest

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<v Speaker 3>man often ignored please to stop alienating advertisers. The new

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<v Speaker 3>biography from Walter Isaacson states the billionaire owner of X

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<v Speaker 3>formerly Twitter, has a string of wealthy advisors he habitually ignores.

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<v Speaker 3>One of those, Warner brothers had David Zaslov caution Musk

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<v Speaker 3>about his self destructive behaviors that were spooking advertisers.

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<v Speaker 5>According to Isaacson's book.

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<v Speaker 3>The news follows yesterday's pop in Tesla stocket jumped ten

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<v Speaker 3>percent after Morgan Stanley said the company's Dojo supercomputer could

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<v Speaker 3>boost Tesla's value by to five hundred billion dollars. Checking

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<v Speaker 3>shares of the Elon Musk owned ev maker right now,

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<v Speaker 3>they are down about four tenths of one percent.

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<v Speaker 2>Meanwhile, Nathan Oversees This morning, shares of Chinese property giant

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<v Speaker 2>Country Garden rallied after Reuters reported that a stressed developer

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<v Speaker 2>wont approval from creditors to extend repayment on six YU

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<v Speaker 2>one bonds by three years. Sources say the deadline for

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<v Speaker 2>votes on twoabate securities will be pushed back into later Tuesday.

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<v Speaker 2>Country Garden has so far void a defaulting, but recently

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<v Speaker 2>Warren still could after posting a record first half loss

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<v Speaker 2>of almost seven billion dollars.

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<v Speaker 3>Also happening overseas this morning, Karen, Russian President Vladimir Putin

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<v Speaker 3>prepares to meet with Kim Jong un. The luxury armored

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<v Speaker 3>train of the North Korean leader crossed into Russian territory

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<v Speaker 3>earlier today. State media in North Korea and Russia say

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<v Speaker 3>the two would meet, but no official schedules been released.

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<v Speaker 3>The meeting offers a chance for Putin to obtain weapons

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<v Speaker 3>to fuel his war in Ukraine, and Kim a chance

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<v Speaker 3>to win assistance for his beleaguered economy so as to

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<v Speaker 3>expand his ability to deliver a nuclear strike.

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<v Speaker 2>Well on the bank sector, Nathan, we're hearing scathing criticism

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<v Speaker 2>of regulators from Jamie Diamond, the JP, Morgan Sherman and

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<v Speaker 2>CEO took aim at higher capital requirement's US regulators proposed

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<v Speaker 2>for the banking industry, saying he would love to know

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<v Speaker 2>what they really want to accomplish.

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<v Speaker 9>The Federal Reserve humility. They're the ones that told the

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<v Speaker 9>world rach On going up, and it wasn't the Federal

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<v Speaker 9>Reserve in general, is each one of them independently factors

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<v Speaker 9>each central bank, so ify with them might have a

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<v Speaker 9>little more humility oversto like this, JP.

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<v Speaker 2>Morgan, CEO Jamie Diamond made the comments at the Barclays

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<v Speaker 2>Global Financial Services Conference in New York. He's repeatedly called

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<v Speaker 2>the proposal hugely disappointing and I mean and.

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

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<v Speaker 3>new vaccination. Bloomberg's head Baxter has that.

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<v Speaker 10>The FDA has approved the Pfizer and Moderna vaccines as

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

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<v Speaker 10>Peter Marks of the FDA says the public can be

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<v Speaker 10>assured that the update vaccines are safe now. It should

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<v Speaker 10>be noted these are not boosters. They're updated vaccines that

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<v Speaker 10>protect against the new variants, better approved for ages twelve

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<v Speaker 10>and up. The CDC is supposed to meet today to

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<v Speaker 10>possibly issue guidance. I'm at Baxter Bloomberg Radio.

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<v Speaker 3>Time Now to take a look at some of the

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<v Speaker 3>other stories making news around the world.

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<v Speaker 5>With that, we're joined by Bloomberg's Michael Barr.

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<v Speaker 11>Good morning, Michael, Good morning, Nathan escape Pennsylvania convict and

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<v Speaker 11>Nello cambal Conte is still on the loose and now

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<v Speaker 11>believed armed. It's been about two weeks after he was

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<v Speaker 11>able to breach the police perimeter in Chester County. Authority

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<v Speaker 11>say Cavalcante managed to steal a van all to his

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<v Speaker 11>appearance and drive nearly twenty miles north over the weekend.

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<v Speaker 11>Deputy US Marshal Robert Clark.

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<v Speaker 12>We expect to catch him as soon as soon as possible,

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<v Speaker 12>but we're not going to put our ducks in a

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<v Speaker 12>row and say, hey, we're going to have him by

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<v Speaker 12>this Thursday. We're going to plan for a long investigation

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<v Speaker 12>because we don't want to get caught planning for an

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

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<v Speaker 11>Marshall Robert Clark says a homeowner shot at a subject

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<v Speaker 11>recently that matched the description of cavil contact. Lawyers for

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<v Speaker 11>Donald Trump have asked the federal judge presiding over his

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<v Speaker 11>election subversion case in Washington to recuse herself. They say

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<v Speaker 11>Judge Tanya Chutkins past public statements about the former president

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<v Speaker 11>and his connection to the January sixth riot at the

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<v Speaker 11>US Capitol call into question whether she can be fair.

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<v Speaker 11>It has been twenty two years since nearly three thousand

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<v Speaker 11>people were killed during the September eleventh attacks in New York.

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<v Speaker 11>At the memorial where the World Trade Center once stood,

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<v Speaker 11>the names of the victims are read aloud and bells told,

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<v Speaker 11>marking the moments that the hijacked airplanes hit the Twin Towers,

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<v Speaker 11>the Pentagon, and a field in Shanksville, Pennsylvania. This girl

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<v Speaker 11>honored the memory of her grandfather and.

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<v Speaker 13>My grandfather, Edward Joseph, Papa, Grandpaetti. Even though I never

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<v Speaker 13>got to meet you, I feel like I've known you

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<v Speaker 13>forever from stories and videos and pictures. It's almost as

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<v Speaker 13>if you're still here.

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<v Speaker 11>Mourners also offered thanks to the first responders. A new

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<v Speaker 11>study suggests the dangers of lead exposure have been gravely underestimated.

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<v Speaker 11>According to the World Bank, exposure to lead in twenty

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<v Speaker 11>nineteen may have cost five and a half million deaths

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<v Speaker 11>worldwide from cardiovascular disease and IQs in children under five.

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<v Speaker 11>Pure Earth President Richard Fuller worked with the World Bank

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<v Speaker 11>on the study.

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<v Speaker 14>When they look at all of the different aspects of

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<v Speaker 14>cardiovascular disease, lead poisoning is just the globally as smoking

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<v Speaker 14>or cholesterol.

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<v Speaker 11>Most of the effects were found in items like cookwear

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<v Speaker 11>made from recycled materials or lad glazed pottery. The study

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<v Speaker 11>is published in the Lanced Planetary Health journal. Global News

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<v Speaker 11>twenty four hours a day, powered by more than twenty

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<v Speaker 11>seven hundred journalist and analysts in over one hundred and

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<v Speaker 11>twenty countries. I'm Michael Barr. This is Bloomberg Nag.

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<v Speaker 5>Thank you, Michael.

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

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<v Speaker 15>To the night where Jets fans emotions went from agony

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<v Speaker 15>to ecstasy. The much hype Jets debut of Aaron Rodgers

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<v Speaker 15>lasted all of four snaps. He threw one pass, he

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<v Speaker 15>got sacked on his leg, he left the game, and

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<v Speaker 15>by all accounts, he's not coming back this season, a

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<v Speaker 15>bitterly cruel blow after so much excitement surrounding Rodgers' arrival,

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<v Speaker 15>and left the Jets once again with Zach Wilson, and

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<v Speaker 15>he threw a bad first half interception, but he played

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<v Speaker 15>better second half through a touchdown pass that Jets rallied

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<v Speaker 15>from ten down against the Bill.

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<v Speaker 5>The game went to overtime.

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<v Speaker 4>Getting away a line drive kick of Sam Martin.

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<v Speaker 7>Gibson runs under it after.

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<v Speaker 11>Ten thirty five, starts to his left, gets to the forty,

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<v Speaker 11>turns the cornum.

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<v Speaker 7>Cut the forty five dixton cluck is it fun?

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<v Speaker 5>Not the forties?

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<v Speaker 7>Not the Bills?

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<v Speaker 5>Thirty hits out the twenties.

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<v Speaker 10>Stunt a step to the ten to the five touchdown.

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<v Speaker 5>Hut touchdown, This game is over.

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<v Speaker 15>ESPN New York to call the Xavier Gibbson sixty five

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<v Speaker 15>yard return.

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<v Speaker 5>The Jets stunned the Bills twenty two to sixteen. Tommy

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<v Speaker 5>Famm won.

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<v Speaker 15>Several Mets traded at the deadline back at City Field

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<v Speaker 15>with Arizona had a single double, a game time home run.

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<v Speaker 15>Diamondbacks scored in the ninth top the Mets four to three.

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<v Speaker 15>Yankees and Red Sox reigned out in Boston doubleheader. Today,

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<v Speaker 15>BIGS series help decide who gets the last wildcard of

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<v Speaker 15>the America Lague. Texas won ten for at Toronto. The

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<v Speaker 15>Jays lead by a half game. The NBA will vote

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<v Speaker 15>today on whether to start finding teams who rest their

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<v Speaker 15>stars in national TV games. Lebron James Antony wants to

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<v Speaker 15>play the Olympics next summer in Paris. Calling it his

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<v Speaker 15>last dance, and he has said to be recruiting Kevin

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<v Speaker 15>Durant and Steph Curry.

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<v Speaker 11>The US just.

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<v Speaker 15>Finished fourth at the World Cup. John Stashedward Bloomberg Sports.

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<v Speaker 16>From coast to coast, from New York to San Francisco,

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<v Speaker 16>Boston to Washington, DC, nationwide on SYRIASXAM, the Bloomberg Business app,

0:10:20.040 --> 0:10:21.400
<v Speaker 16>and Bloomberg dot Com.

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<v Speaker 5>This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.

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<v Speaker 3>We are counting down to Apple's latest product launch later

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<v Speaker 3>today in Coopertino, California. The iPhone maker has been dealing

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<v Speaker 3>with several negative headlines ahead of it, from China's crackdown

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<v Speaker 3>on iPhones for government workers to delays for in house chips.

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<v Speaker 3>So will a next generation iPhone be enough to give

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<v Speaker 3>Apple more of a lift as we head into the

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

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<v Speaker 3>tech industry for US here on Bloomberg Radio. Well, Alex,

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<v Speaker 3>we did get the headline moments ago that made in

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<v Speaker 3>India iPhones are going to be available on this launch day.

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<v Speaker 5>That seems like it could be a big deal.

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<v Speaker 17>Certainly an interesting narrative for them to be pushing isn't

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<v Speaker 17>it the You know, there's been gradual pressure over time

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<v Speaker 17>on the Chinese supply chain, of course, and Apple has

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<v Speaker 17>been doing a huge amount to try to de risk

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<v Speaker 17>its exposure there, so they've been expanding the production capabilities

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<v Speaker 17>in India. That also helps them in the Indian market

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<v Speaker 17>because if you want to have your own retail outlets there,

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<v Speaker 17>you need to be manufacturing domestically, and it is a

0:11:31.920 --> 0:11:33.840
<v Speaker 17>market where they see huge amount of potential. But let's

0:11:33.840 --> 0:11:35.360
<v Speaker 17>put that in little bit of context. Right in the

0:11:35.840 --> 0:11:38.839
<v Speaker 17>most recent data we have from March trailing twelve month

0:11:38.960 --> 0:11:42.880
<v Speaker 17>revenue is about six billion dollars in India. In China

0:11:42.960 --> 0:11:47.080
<v Speaker 17>right now, Apple has in the order of Greater China,

0:11:47.080 --> 0:11:49.240
<v Speaker 17>which also gives Taiwan has an eure of seventy four

0:11:49.280 --> 0:11:51.800
<v Speaker 17>billion dollars in revenue, So India has a long way

0:11:51.840 --> 0:11:53.920
<v Speaker 17>to catch up. The iPhones that are going to be

0:11:53.960 --> 0:11:57.520
<v Speaker 17>on sale made in India in the next generation, only

0:11:57.559 --> 0:12:00.800
<v Speaker 17>a small portion of them will be coming from that market.

0:12:00.800 --> 0:12:03.160
<v Speaker 17>The vast majority will still be made in China. So

0:12:03.559 --> 0:12:07.120
<v Speaker 17>it is a change, it isn't It isn't a sea

0:12:07.240 --> 0:12:08.480
<v Speaker 17>change just yet.

0:12:08.760 --> 0:12:11.199
<v Speaker 3>Do you expect it to be a sea change at

0:12:11.240 --> 0:12:14.880
<v Speaker 3>some point, given some of the headwinds that Apple is

0:12:14.920 --> 0:12:17.920
<v Speaker 3>facing in China right now, it.

0:12:17.840 --> 0:12:20.680
<v Speaker 17>Could well be. But that time is not a year

0:12:20.720 --> 0:12:23.320
<v Speaker 17>away or two years away. It is five to ten

0:12:23.400 --> 0:12:25.760
<v Speaker 17>years away, right. It takes a long time to build

0:12:25.800 --> 0:12:29.800
<v Speaker 17>up your supply chain. China has got not just the

0:12:29.840 --> 0:12:32.439
<v Speaker 17>factories to make the iPhones, it has the factories that

0:12:32.520 --> 0:12:35.480
<v Speaker 17>make the components that supply the iPhones. It has you know,

0:12:35.559 --> 0:12:40.680
<v Speaker 17>the ability to mobilize millions of people to work in

0:12:40.720 --> 0:12:43.840
<v Speaker 17>these factories at peak production season. That is not somewhere

0:12:43.880 --> 0:12:46.440
<v Speaker 17>that India has got to yet. You know, if you

0:12:46.480 --> 0:12:49.400
<v Speaker 17>go to Shanzhen, you can see in that just in

0:12:49.400 --> 0:12:53.559
<v Speaker 17>that you know, remarkable city, the how everything is there.

0:12:53.640 --> 0:12:56.200
<v Speaker 17>Everything you need to make a smartphone pretty much is there,

0:12:56.559 --> 0:12:58.480
<v Speaker 17>with the exception of the top of the line chips

0:12:58.720 --> 0:13:01.200
<v Speaker 17>that the US is making it high to import. So,

0:13:01.760 --> 0:13:04.880
<v Speaker 17>you know, Tim Cook has talked about India being at

0:13:04.880 --> 0:13:06.239
<v Speaker 17>an inflection point.

0:13:06.559 --> 0:13:08.840
<v Speaker 7>That's you know, slightly empty language.

0:13:08.840 --> 0:13:12.560
<v Speaker 17>Because China was at six billion in revenue about fifteen

0:13:12.640 --> 0:13:15.360
<v Speaker 17>years ago, right so after that point it did massively accelerate.

0:13:15.400 --> 0:13:16.840
<v Speaker 7>A lot needs to happen in India for it to

0:13:16.840 --> 0:13:17.680
<v Speaker 7>get to that point.

0:13:17.840 --> 0:13:20.240
<v Speaker 3>Well, what does it tell you, Alex, that Apple is

0:13:20.559 --> 0:13:24.760
<v Speaker 3>leaking out this kind of news about the supply chain

0:13:24.960 --> 0:13:29.520
<v Speaker 3>and about the sourcing of next generation iPhones as the

0:13:29.960 --> 0:13:33.800
<v Speaker 3>big the big thing for us to latch onto, as

0:13:33.800 --> 0:13:38.320
<v Speaker 3>opposed to something along the lines of vision pro or

0:13:38.640 --> 0:13:41.480
<v Speaker 3>details about what the next iPhone's going to have in it.

0:13:42.320 --> 0:13:44.280
<v Speaker 17>Well, I'm going to push back on that thinking because

0:13:44.280 --> 0:13:46.360
<v Speaker 17>it's I think you give our colleagues in India some

0:13:46.440 --> 0:13:48.920
<v Speaker 17>credit for breaking this story. It's not necessarily a handout

0:13:49.000 --> 0:13:51.360
<v Speaker 17>from the Apple pr machine that there's probably a good

0:13:51.360 --> 0:13:54.400
<v Speaker 17>deal reporting in there, which sure, you know, we don't

0:13:54.440 --> 0:13:56.280
<v Speaker 17>know that this is something that Apple wanted to push.

0:13:56.400 --> 0:13:59.760
<v Speaker 17>It is something that our colleagues have reported from their sources.

0:13:59.840 --> 0:14:03.600
<v Speaker 17>So if they mention it, right, I think it's highly

0:14:03.640 --> 0:14:06.400
<v Speaker 17>unlikely they will because if you you know, they don't

0:14:06.520 --> 0:14:09.120
<v Speaker 17>like to advertise on their devices that they are not

0:14:09.240 --> 0:14:13.160
<v Speaker 17>necessarily made in the US. But if they were to

0:14:13.240 --> 0:14:15.880
<v Speaker 17>mention it somehow in the course of the presentation, that

0:14:15.960 --> 0:14:17.000
<v Speaker 17>would be remarkable.

0:14:17.600 --> 0:14:19.240
<v Speaker 7>But that's not the message we have just yet.

0:14:19.520 --> 0:14:21.200
<v Speaker 3>Well, I guess what I'm getting at, Alex is are

0:14:21.240 --> 0:14:24.480
<v Speaker 3>we expecting any more surprises from Apple in terms of

0:14:24.520 --> 0:14:27.200
<v Speaker 3>what the components of the devices are going to be

0:14:27.840 --> 0:14:31.120
<v Speaker 3>you know what make what helps the iPhone fifteen stand

0:14:31.160 --> 0:14:34.480
<v Speaker 3>out from past iterations of this device?

0:14:34.520 --> 0:14:35.840
<v Speaker 5>We got about a minute left.

0:14:36.560 --> 0:14:39.320
<v Speaker 17>I mean, being Frank's probably not a huge amount that's

0:14:39.360 --> 0:14:41.680
<v Speaker 17>going to stand out from previous versions. The thing that's

0:14:41.680 --> 0:14:43.880
<v Speaker 17>interesting is little stuffer around the edges, and it actually

0:14:43.880 --> 0:14:46.120
<v Speaker 17>the edge is very much one thing, a thinner bezel

0:14:46.160 --> 0:14:48.280
<v Speaker 17>at the end edge of the phone. And also the

0:14:49.200 --> 0:14:52.000
<v Speaker 17>pro lineup is going to be made out of titanium,

0:14:52.040 --> 0:14:54.960
<v Speaker 17>not out of steel. That should let them push a

0:14:55.040 --> 0:14:57.320
<v Speaker 17>higher price point of pricing is crucial. Right now, they're

0:14:57.360 --> 0:14:59.280
<v Speaker 17>not selling as many units, or the pace of growth

0:14:59.320 --> 0:15:02.120
<v Speaker 17>in unit sales as massively slow. They're therefore trying to

0:15:02.160 --> 0:15:04.040
<v Speaker 17>squeeze more money out of the units they do sell.

0:15:04.480 --> 0:15:06.400
<v Speaker 17>New materials help them achieve that.

0:15:06.920 --> 0:15:10.200
<v Speaker 3>Do you think this product launch is going to be

0:15:10.320 --> 0:15:13.600
<v Speaker 3>enough to give Apple a boost heading into the holiday quarter.

0:15:14.320 --> 0:15:15.920
<v Speaker 17>I'm going to certainly give it a boost. Right this

0:15:16.000 --> 0:15:18.240
<v Speaker 17>is the biggest quarter for them. Every time, the question

0:15:18.440 --> 0:15:21.560
<v Speaker 17>is is it above and beyond expectations? You'll hear all

0:15:21.560 --> 0:15:23.840
<v Speaker 17>sorts of back and forth or their cutting production that

0:15:24.360 --> 0:15:27.880
<v Speaker 17>Ultimately the fact is because the services business has been

0:15:27.920 --> 0:15:30.800
<v Speaker 17>so good, people keep buying their new iPhones, and particularly

0:15:30.800 --> 0:15:32.560
<v Speaker 17>feel freshening at the high end, where there's less price

0:15:32.640 --> 0:15:36.560
<v Speaker 17>sensitivity that tends to support the grocery.

0:15:36.560 --> 0:15:42.520
<v Speaker 1>Actually, this is Bloomberg Daybreak Today, your morning brief on

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