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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.

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Speaker 2: This is the Bloomberg Day BAQ podcast. Good morning, It's Wednesday,

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Speaker 2: the tenth of September. I'm Caroline Hepka in London and.

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Speaker 1: I'm Stephen Caroline Brussels. Coming up today, the United States

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Speaker 1: offers rare criticism of Israel after the unprecedented bombing of

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Speaker 1: her mass leaders in Katar.

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Speaker 2: Poland scrambles jets and shots Warsaw Airport as it engages

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Speaker 2: with Russian strike drones over its territory in what it

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Speaker 2: calls an act of aggression.

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Speaker 1: Plus slimming down to boost sales, Apple unveils a new

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Speaker 1: thinner iPhone air, but a new lineup leaves investors underwhelmed.

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Speaker 2: Let's start with a roundup of our top stories.

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Speaker 1: Israel's unprecedented strike on her mass targets and the Katari

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Speaker 1: capital Doha has drawn rare public criticism from Donald Trump.

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Speaker 1: Until now, the US President has appeared aligned with Israeli

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Speaker 1: Prime Minister Benjaminettania, Who's aggressive approach to targeting regional adversaries. However,

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Speaker 1: Trump voice frustration as he said he was not given

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Speaker 1: advanced notice of the attack.

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Speaker 3: I'm not thrilled.

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Speaker 4: About the whole situations not a good situation. But I

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Speaker 4: will say this, we want the hostages back, but we

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Speaker 4: are not thrilled about the way that went down today.

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Speaker 1: Trump added that he spoke with both ness and Niahu

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Speaker 1: and Katari leaders after the strike and assured Katar that

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Speaker 1: such an attack would not happen again. Hamas said five

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Speaker 1: of its members were killed in the Doha attack, though

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Speaker 1: its main negotiating delegations survived. Meanwhile, European leaders denounced the

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Speaker 1: strike as a setback to Katari mediated talks aimed at

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Speaker 1: ending the war in Gaza and securing the release of

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Speaker 1: hostages held by Hamas.

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Speaker 2: Now, Poland has deployed military jets and shut down part

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Speaker 2: of its airspace as it engaged with Russian strike drones

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Speaker 2: that Poland's military says have repeatedly violated its airspace. Bloomberg's

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Speaker 2: Mijo Kubala reports.

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Speaker 5: Now, the Russian drones crossed over from me bring Ukraine

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Speaker 5: in what Poland has condemned as an act of aggression.

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Speaker 5: The country's military says and operation is underway to identify

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Speaker 5: and neutralize the objects. It urged residents in a number

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Speaker 5: of border regions to stay at home authorities also closed

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Speaker 5: the airspace over parts of the country, including around the

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Speaker 5: main international airport in Warsaw. Prime Minister Donald Tusk said

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Speaker 5: he briefed NATO Secretary General Markrute about the current situation

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Speaker 5: and that they remain in constant contact in Brussels. Mikael

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Speaker 5: Kubala Bloomberg.

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Speaker 1: Radio BLOOMBERGUDA stands that US President Donald Trump told European

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Speaker 1: officials he's willing to impose sweeping new tariffs on India

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Speaker 1: and China, but only if the EU does so as well.

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Speaker 1: The aim of the tariffs would be to push Russia's

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Speaker 1: Ladimir Putin to the negotiating table with Ukraine. It comes

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Speaker 1: after President Trump's deadline for Putin to engage in face

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Speaker 1: to face peace talks with Ukrainess of vladimir' Elensky passed

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Speaker 1: without consequence. Trump's proposal comes as the UK has reopened

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Speaker 1: its dialogue with Beijing. Business Secretary Peter Kaid is attending

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Speaker 1: the first high level trade top with the two countries

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Speaker 1: since twenty eighteen, is expected to press for better access

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Speaker 1: for British companies.

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Speaker 2: France's President of Maduel Macon has named out going Defence

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Speaker 2: Minister Sebasiel Locarno as his new Prime Minister. Macwar has

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Speaker 2: asked his longtime ally to consult the political groupings in

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Speaker 2: Parliament with a view to adopting a budget. Finding consensus

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Speaker 2: on tax and spending plans that cut France's deficit will

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Speaker 2: be Lecurno's biggest challenge. As our Paris Bureau chief Alan

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Speaker 2: Katz explains.

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Speaker 6: Look on new who came originally from a party called

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Speaker 6: the Republicans, which is sort of a center right party,

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Speaker 6: has been with mccon since mcworm became president in twenty seventeen.

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Speaker 6: Is he the person to sort of build bridges across

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Speaker 6: these political parties. It's not immediately obvious. He's known as

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Speaker 6: the skilled negotiator. He doesn't have a lot of enemies.

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Speaker 6: He's been pretty good as a defense minister.

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Speaker 2: Alan Katz went on to say that Locurno's minority government

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Speaker 2: will need tacit approval from the left all the right

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Speaker 2: to survive a possible no confidence motion.

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Speaker 1: A judge has temporarily blocked Donald Trump from removing Federal

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Speaker 1: Reserve Governor Lisa Cook, allowing her to stay in the

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Speaker 1: job while challenging mortgage fraud allegations. The ruling means Cook

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Speaker 1: will likely be able to take part in the fed's

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Speaker 1: highly anticipated interest rate decision meeting next week. The judge

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Speaker 1: concluded that the alleged Mius conduct likely didn't amount to

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Speaker 1: cause for firing under the Federal Reserve Act, and the

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Speaker 1: nature of her dismissal likely violated due process rights under

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Speaker 1: the Constitution.

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Speaker 2: US job's growth was far less robust than the year

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Speaker 2: through to the end of March than previously reported. The

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Speaker 2: number of workers on payrolls will likely be revised down

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Speaker 2: by a record nine hundred and eleven thousand, or zero

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Speaker 2: point six percent, according to the US government's preliminary benchmark revision.

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Speaker 2: JP Morgan CEO Jamie Darman says that that latest US

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Speaker 2: payrolls revision is more proof that the is slowing. He

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Speaker 2: was speaking to CNBC. He also acknowledged the unpredictable nature

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Speaker 2: of economic growth.

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Speaker 7: The government data is important, our own data is important.

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Speaker 7: We get data from non government sources and you know,

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Speaker 7: you can look at Delingercy data, worldwide data, trade data.

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Speaker 7: We get all of that. But trying to figureut what

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Speaker 7: the clim is going to do is still hard to

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Speaker 7: do with all that data. And maybe one day AI

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Speaker 7: I'll fix that problem. But uh, you know, hopefully things

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Speaker 7: will be okay and but you do see that kind

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Speaker 7: of weakening.

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Speaker 2: Unfortunately, JP Morgan's Jamie Diamond there as US Treasury Sector

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Speaker 2: Scott best End called on the Federal Reserve to see

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Speaker 2: the data as a strong reason to change its policy

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Speaker 2: stants and cut rates.

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Speaker 1: British business groups of Warrens the labor governments at fiscal

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Speaker 1: policies could stoke price increases and threaten companies with billions

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Speaker 1: of pounds and extra costs. They say the Chancellor's policies

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Speaker 1: on taxes, employment rights and the minimum wage threatened to

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Speaker 1: pile billions of pounds of operating costs onto companies and

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Speaker 1: stoke price increases for another year. A spokesperson for the

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Speaker 1: British Chambers of Commerce said their number one ask from

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Speaker 1: her upcoming budget in November is for no more tax

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Speaker 1: increases on businesses. In the House of Commons, the Chancellor

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Speaker 1: hit back at the Conservative Party suggested that the UK

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Speaker 1: might need an IMF bailout due to higher borrowing costs.

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Speaker 8: The country would have heard what the leader of the

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Speaker 8: opposition said today talking down our economy in a desperate

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Speaker 8: attempt to get attention The truth is that the benches

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Speaker 8: opposite note that it is not serious and it is irresponsible.

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Speaker 8: The only thing in Britain that leaves a bailout is

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Speaker 8: the Tory Party from its failed leadership.

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Speaker 1: Josh love One, Chancell rayjer Reeves speaking there is Boomberg

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Speaker 1: Economics calculates that she needs to fill a projected thirty

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Speaker 1: five billion pound fiscal hole in her budget.

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Speaker 2: In November and Lassie Apple has introduced a fresh range

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Speaker 2: of products, including enhanced AirPods, watches, and its thinnest ever iPhone,

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Speaker 2: along with new pro versions of the device. The new

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Speaker 2: skinnier model dubs the iPhone seventeen Air do the loudest

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Speaker 2: cheers at its launch event in California, but it lags

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Speaker 2: in key areas including on battery, life, cameras and audio.

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Speaker 2: Dan Ives, the global head of tech research at web

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Speaker 2: Bush Securities, gave his tech take on the new upgrades.

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Speaker 9: Look, the reality is that this is not going to

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Speaker 9: be a super cycle. There's nothing here that makes you

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Speaker 9: think that this is going to be the game change

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Speaker 9: that everyone's been waiting for. But I do believe given

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Speaker 9: the install is given some of the tweaks here and

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Speaker 9: ultimately on the on sort of the second half of

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Speaker 9: this upgrade cycle, you will have an AI driven ECOSYSMAB,

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Speaker 9: we will be Google Gemini. This could be a sneaky

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Speaker 9: upgrade cycle that I think surprises investors on the upside.

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Speaker 2: Dan Ives, the global head of Tech research at Webb

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Speaker 2: Bush Securities, as investor reaction was muted with Apple shares

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Speaker 2: down one and a half percent in New York.

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Speaker 1: And those are time stories coming up. Looking at the

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Speaker 1: markets this morning, eurostocks fifty futures are at the moment

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Speaker 1: two tens of one percent higher. In Asia, we have

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Speaker 1: seen the MSCIS Specific index up by one point one percent,

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Speaker 1: the hang Sayings up by one point three percent today.

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Speaker 1: On currency markets, Bimberg dollar spot inex a tenth of

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Speaker 1: one percent week, or the eurotraining at one seventeen sixty

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Speaker 1: in the ten year treasury yield is holding steady this

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Speaker 1: morning at four point zero nine percent.

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Speaker 2: Now, you were in Paris yesterday, as Stephen Koe You're

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Speaker 2: back in Brussels today. There is simply no shortage of

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Speaker 2: news that we must discuss, and we will be thinking

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Speaker 2: about the strikes in Cut on just a moment. But

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Speaker 2: there's also Nova Nordisk out today talking about slashing nine

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Speaker 2: thousand jobs. And we've had more reaction from Poland around

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Speaker 2: the drone incident. These drones at the Polish military say,

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Speaker 2: have repeatedly come over from Ukraine, their Russian drones of

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Speaker 2: Poland convening an emergency cabinet meeting after this drone incident,

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Speaker 2: and so lots going on in Europe. Barely a chance

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Speaker 2: to think really about the politics in France today.

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Speaker 1: Yeah, indeed, and of course the big event in France

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Speaker 1: today is going to be the protest, which are going

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Speaker 1: to overshadow Sebastiania Cornoho's first day as Prime minister. He's

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Speaker 1: going to have his handover ceremony in a couple of

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Speaker 1: hours with Francois Berou. Will will get a chance to

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Speaker 1: hear a little bit from the new Prime minister as well.

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Speaker 1: And he has an already absolutely massive job trying to

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Speaker 1: win support in a very fractured National Assembly to try

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Speaker 1: and get budget proposals underway. But the short term challenges

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Speaker 1: are going to be around how disruptive this day of

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Speaker 1: protest is. It was a movement largely organized on social

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Speaker 1: media called Let's Block Everything, and it comes ahead of

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Speaker 1: a much briger demonstration organized by the Unions, which is

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Speaker 1: happening next week. But both are going to cause use

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Speaker 1: disruption to people's everyday life in France. So perhaps not

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Speaker 1: the best first day for the new Prime Minister Sebastiana Cornu.

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Speaker 2: No, indeed, right, Well, let's discuss then the other stories.

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Speaker 2: Our main news item Israel's attack against Hamasin kata, a

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Speaker 2: U ally and key mediator in the talks over the

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Speaker 2: war in Gaza. It has deeply unnerved the region. Joining

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Speaker 2: us now is our Middle East and Africa Managing editor

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Speaker 2: Paul Wallace. Paul, good to have you with us. What

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Speaker 2: has been the reaction in Kutar to this attack? Do

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Speaker 2: you think we should expect a response?

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Speaker 3: Hi Hee, Caroline. This attack has been i'd say universally condemned.

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Speaker 3: It's hard to find a country that's sticking up for

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Speaker 3: Israel in terms of the strike. Even the US is

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Speaker 3: making it pretty clear that it was not happy with this.

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Speaker 3: It has an outright condemned or criticized Israel or Prime

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Speaker 3: Minister Benjamin Nettan Yahoo, but it's made very clear that

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Speaker 3: it was unhappy with Israel choosing to launch an air

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Speaker 3: strike on Qatar's capital, and it's very awkward for Donald Trump.

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Speaker 9: To say the least.

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Speaker 3: Saudi Arabia has called it a criminal at the Gas

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Speaker 3: states of all sais that this endangers regional security and

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Speaker 3: that it's a reckless act. So there's certainly a feeling

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Speaker 3: of i'd say, outrage in the region from from among

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Speaker 3: a lot of governments and a lot of official officials

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Speaker 3: about about what happened yesterday.

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Speaker 1: Yeah, indeed, and the effects, as you say, being discussed

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Speaker 1: across the region as well. I mean, where does Israel

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Speaker 1: go from here after, you know, the sort of ripple

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Speaker 1: effects across the region from the strike.

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Speaker 3: It's a very good question. We're going to have to

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Speaker 3: wait and see. In terms of Caroen what you asked

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Speaker 3: about whether there would be a reaction. I think there's

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Speaker 3: going to be something. I'm not saying it will be

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Speaker 3: a military reaction from Kappa or any of the other

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Speaker 3: Gulf states. I really doubt they would even think of

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Speaker 3: something like that. But they have leverage in other ways,

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Speaker 3: whether it's you know, the financial financial route in terms

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Speaker 3: of you know, ending pledges to invest in to invest

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Speaker 3: in America. Many of those pledges were only made as

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Speaker 3: recently as May when Don Trump flew to you know,

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Speaker 3: Saudi Arabia and Qatar and the UAE. And you know

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Speaker 3: he wore me embraced Cuto's leader when he was there,

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Speaker 3: you know.

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Speaker 10: Uh, So there's that.

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Speaker 3: There's also you know, the UAE could well reduce what

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Speaker 3: ties it has with Israel and reduce sort of contact

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Speaker 3: between between officials. I don't think Israel is going to

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Speaker 3: be that perturbed by any of that. I'm sure it's

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Speaker 3: aware that some of this stuff might happen, and I

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Speaker 3: just don't think it cares because from Israel's point of view,

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Speaker 3: they said, Hamas officials off a air game wherever they

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Speaker 3: are in the world, no matter of their rank. So

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Speaker 3: Israel felt that it was it was okay and in

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Speaker 3: its national interest to go after that. It did say

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Speaker 3: that it was partly a reaction to Monday's attack in

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Speaker 3: Jerusalem when a Palestinian gunman killed killed six people. So

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Speaker 3: the longest short of it is we will see a

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Speaker 3: reaction of some kind. This could be the end of

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Speaker 3: the ceasefire walks between Hamas and UH and Israel for

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Speaker 3: the time being, they were already stuttering, they were already

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Speaker 3: effectively halted. But this could could put a sort of

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Speaker 3: formal end to them, and it will have diplomatic repercussions,

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Speaker 3: and I guess those will play out in the coming

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Speaker 3: weeks and months.

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Speaker 2: Yeah, I suppose what does it also mean for the

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Speaker 2: war in Gaza for Palestinian people? Are you and body

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Speaker 2: declaring a family in parts of the territory? I mean,

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Speaker 2: what happens now with that conflict exactly?

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Speaker 3: And there are even some Israeli saying this is a

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Speaker 3: disaster for the prospects of ending ending the war soon.

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Speaker 3: There were some family members of Israeli hostages that are

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Speaker 3: still held in Garza really criticizing Ettigno, who lost night

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Speaker 3: and late yesterday for this attack and saying that this

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Speaker 3: will set back the prospects for a ceasefile into the war.

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Speaker 3: It is difficult to say, Nasnel, who himself is arguing

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Speaker 3: that this is something that can hasten the end to

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Speaker 3: the war. It's difficult to sort of square that with

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Speaker 3: the reality right now, because you know, the people that

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Speaker 3: Israel targeted these Hamas leaders, a lot of you know,

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Speaker 3: they were essentially front and center of these ceasefire talks.

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Speaker 3: We you know, the leaders that were targeted don't seem

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Speaker 3: to have been killed. Some other people were lower level

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Speaker 3: from US officials. But you know, Israel going after those

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Speaker 3: those key mediators, you know, it's hard to see how

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Speaker 3: that's going to help get how much to the point

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Speaker 3: where it surrenders or accepts the cease fire.

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Speaker 1: Okay, Paul, thank you very much. Paul Whiles there our

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Speaker 1: Middleast Inn Africa Managing editor. Stay with us. More from

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Speaker 1: Bloomberg Day Break Europe coming up after this.

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Speaker 2: Now it is time to think about another story across

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Speaker 2: the US. Apple has launched its new thinner iPhone seventeen Air,

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Speaker 2: as well as a number of other products, a story

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Speaker 2: that we've been thinking about this after signs of slowing

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Speaker 2: demand in recent years for what has been the biggest

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Speaker 2: money maker for Apple, the iPhone. Investors were generally underwhelmed,

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Speaker 2: Apple's share price falling one and a half percent in

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Speaker 2: New York trading. A little earlier, we spoke to Bloomberg's

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Speaker 2: consumer Technology managing Edison Mark German, and started by asking him, well,

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Speaker 2: of course, for his verdict on the new products.

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Speaker 10: I like that they've brought the forty eight megapixel camera

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Speaker 10: to the telehotal lens. That's a big improvement in my

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Speaker 10: viewpoint for daily photography purposes. I think people are really

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Speaker 10: going to like the new design and form factor. One

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Speaker 10: thing that I will tell you is that one of

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Speaker 10: the flagship features of this new phone is fixing a

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Speaker 10: problem they introduced two years ago. They may recall. With

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Speaker 10: the fifteen Pro, they moved to a titanium design. You

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Speaker 10: have some benefits with titanium, right, durability being one of them.

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Speaker 10: But one of the big drawbacks is it doesn't dissipate

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Speaker 10: heat as well as aluminum, and so now they're moving

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Speaker 10: back to aluminum because the last two models overheated.

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Speaker 1: Is it going to be enough to tempt people to

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Speaker 1: upgrade their phones the really key question that Apple is

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Speaker 1: trying to get that achievement with these new models.

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Speaker 10: Oh absolutely. I mean design is what sells new phones,

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Speaker 10: right if you're an Apple customer, and I think that

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Speaker 10: this is the biggest change to the iPhone in half

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Speaker 10: a decade, and so you'll see lines for this thing,

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Speaker 10: particularly the Orange Pro. I think the iPhone Air is interesting,

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Speaker 10: but it's not practical for the vast, vast, vast vast

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Speaker 10: majority of people. Battery life, performance, camera issues, et cetera,

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Speaker 10: et cetera. So I think it's really the profones that

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Speaker 10: are going to move the needle for Apple this year,

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Speaker 10: there's also new Apple Watches, there's new AirPods, and I

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Speaker 10: thought they did a good job on the AirPods. I

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Speaker 10: thought the new Apple Watches were sort of mediocre updates.

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Speaker 2: My main question, as someone who studied languages way back when,

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Speaker 2: is that the airports, in a very sort of slick

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Speaker 2: presentation that they delivered, showed this idea of simultaneous translation

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Speaker 2: for the AirPods. I mean, also, it's had for some

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Speaker 2: time the idea of helping people with hearing loss, but

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Speaker 2: I thought simultaneous translation in the era of chat GPT

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Speaker 2: as well, that seemed really pretty novel. If it really

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Speaker 2: works that.

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Speaker 10: Way, Yeah, the simultaneous translation is very cool. It does

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Speaker 10: work quite well. The only question is and how many

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Speaker 10: people are needing to use that feature?

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Speaker 2: Right?

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Speaker 10: It doesn't seem like a feature that's going to get

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Speaker 10: super wide adoption a lot of use. There's not many

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Speaker 10: use cases where you would need that translation feature, especially

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Speaker 10: when you think about it, You're going with another country, right,

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Speaker 10: and how many people are going to run into that

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Speaker 10: you need to talk to in their language that already

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Speaker 10: have aeropods in their ears. So certainly it's something that

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Speaker 10: a lot of people are gonna want to use a demo,

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Speaker 10: but maybe not something that's going to be used on

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Speaker 10: a daily basis in practice. The heart rate feature is

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Speaker 10: pretty cool. They added these to the power Beats in January.

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Speaker 10: Now they're bringing them to the Aeropods Pro. It's going

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Speaker 10: to get more people on the Apple ecosystem, I think,

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Speaker 10: and maybe interest people even and upgrading to Apple Watch

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Speaker 10: or fitness subscriptions and what have you.

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Speaker 1: I want to come back to the iPhone Air for

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Speaker 1: a moment because some of the issues that you flagged

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Speaker 1: around it, like things like battery life. Is this a

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Speaker 1: first iteration of a product that will evolve and could

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Speaker 1: become a much bigger setup for Apple down the line.

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Speaker 10: Well, I think about what the MacBook Air was. It

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Speaker 10: was a device that started off with mediocre battery life,

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Speaker 10: terrible processing power that it was super thin and light

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Speaker 10: and marketable. Right, You're going to see the same thing

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Speaker 10: happen all iPhones one day are going to be like

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Speaker 10: the iPhone Air. The iPhone Air is sort of exactly

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Speaker 10: what Apple wants to hit one day. It's just going

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Speaker 10: to take a while for them to get the performance

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Speaker 10: and the camera technology for a profone in that slim

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Speaker 10: down form factor.

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Speaker 2: Let's think money. Apple actually called this launch event, they

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Speaker 2: named it or dropping. Investors were not particularly impressed. The

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Speaker 2: share price of Apple went down just after that presentation.

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Speaker 2: And then you also have to think about the flip

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Speaker 2: side of that, the price tag of the hardware that

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Speaker 2: is on offer. How do you think about it in

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Speaker 2: terms of you know the numbers.

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Speaker 10: Well, what you got was a silent price hike. So

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Speaker 10: instead of hiking prices, the iPhone air came in at

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Speaker 10: one thousand US, which is one hundred dollars more than

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Speaker 10: the sixteen plus it replaces. And fine. The other thing

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Speaker 10: to note is that the fifteen or the seventeen pro

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Speaker 10: I should say, comes in at eleven hundred US, that

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Speaker 10: is one hundred dollars increase year of a year from

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Speaker 10: the sixteen pro. But they are doubling the storage at

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Speaker 10: the starting capacity, and so it's basically no price increase.

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Speaker 10: That's why I call it a silent price increase. And

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Speaker 10: then you have watches and AirPods saying stagnan in terms

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Speaker 10: of pricing, the AirPods at to fifty, the watch se

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Speaker 10: at two fifty, and so forth. But the big story

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Speaker 10: here is that investors really need to reset their expectations.

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Speaker 10: I mean, you're not going to see major AI innovation

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Speaker 10: for a couple of years from now. You're not going

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Speaker 10: to see a big update tail serie until next year.

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Speaker 10: And so the question is why are you an Apple stock?

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Speaker 10: Don't you understand that Apple's a hardware company and this

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Speaker 10: is their hardware showcase and they make their money from

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Speaker 10: hardware and what they delivered here. Sure, there's I have

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Speaker 10: serious concerns with the iPhone Air. I have criticisms with

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Speaker 10: the iPhone promas. I think they could have done more

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Speaker 10: on the Apple watches. But these are going to sell,

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Speaker 10: and they're going to sell on big quantities, and so

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Speaker 10: I think investors should be pretty pleased here.

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Speaker 1: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 1: stories making news from London to Wall Street and beyond.

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Speaker 1: And I'm Stephen Carroll. Join us again tomorrow morning for

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