WEBVTT - Apple's Product Launch, Google on Trial

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<v Speaker 1>Good morning.

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<v Speaker 2>I'm Richard Salamath and I'm Doug Krisner. Here are the

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

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<v Speaker 1>As we talk about inflation.

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<v Speaker 3>We get that key CPI print and Wednesday morning, and

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<v Speaker 3>traders gearing up for that. It could, of course provide

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<v Speaker 3>more clues on what the Federal Reserve does do next,

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<v Speaker 3>But Mags Michael McKee, aw's a preview.

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<v Speaker 4>Investors have already priced for a rise in headline inflation,

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<v Speaker 4>largely led by energy prices. The FED can't affect those,

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<v Speaker 4>so there's no anticipation the CPI will lead to a

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<v Speaker 4>rate rise at next week's meeting. Instead, the focus will

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<v Speaker 4>be on the core inflation rate. It's forecast to drop,

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<v Speaker 4>suggesting the Central Bank is still making progress. Within the report,

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<v Speaker 4>analysts will be looking primarily at housing prices rents. After

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<v Speaker 4>a long period pushing inflation up, they are expected to decelerate.

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<v Speaker 4>Fed officials, of course, will also be looking at core

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<v Speaker 4>service prices x housing for signs that wage growth is slowing,

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<v Speaker 4>even though Wall Street commissions have pushed that category higher

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<v Speaker 4>in recent months. Michael McKee Bloomberg Radio.

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<v Speaker 2>We go next to Apple and the unveiling of four

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<v Speaker 2>new iPhone models. That happened today. These new models include

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<v Speaker 2>the iPhone fifteen, fifteen Plus, fifteen Pro, and fifteen Pro Max. Now,

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<v Speaker 2>Apple's new Promax model will have a hefty price tag

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<v Speaker 2>eleven hundred and ninety nine dollars. You know, that's up

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<v Speaker 2>one hundred bucks from last year. Apple is banking on

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<v Speaker 2>some new materials along with improved performance as a way

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<v Speaker 2>of trying to win over consumers in a market that

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<v Speaker 2>has been a little sluggish where a smartphone demand is concerned.

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<v Speaker 2>Here is bloomberg' ed Ludlow.

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<v Speaker 5>What we know is that, as expected, we have two

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<v Speaker 5>variants of the base model iPhone fifteen, a six point

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<v Speaker 5>one inch screen and a six point seven inch screen.

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<v Speaker 5>Both of them get the Dynamic Island, which is the

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<v Speaker 5>top sliver of the screen, a more interactive display that

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<v Speaker 5>displays more information. The big news so far on the

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<v Speaker 5>low end iPhone fifteen is the upgrades to the camera

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<v Speaker 5>forty eight megapixel. The iPhone fourteen non Pro versions a

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<v Speaker 5>year ago had twelve megapixel, so that's a pretty substantive

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<v Speaker 5>up great on the camera technology.

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<v Speaker 2>That is Bloomberg sed Ludlow. By the way, as of Friday,

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<v Speaker 2>Apple will begin taking pre orders for these latest iPhones

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<v Speaker 2>in more than forty countries.

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<v Speaker 1>Rashad, Right, Well, we've got to stay with tech ands.

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<v Speaker 3>We've got the first anti trust trial pitting the federal

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<v Speaker 3>government against a major tech company getting underway in Washington.

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<v Speaker 3>Bloomberg's Nathan Hager has more from DC.

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<v Speaker 6>The case is United States versus Google. The Justice Department

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<v Speaker 6>is accusing Alphabet's search Giant of paying more than ten

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<v Speaker 6>billion dollars a year to maintain its position as the

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<v Speaker 6>default search engine on the web and mobile devices. Federal

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<v Speaker 6>prosecutors say Google has been a monopoly for more than

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<v Speaker 6>a decade and controls more than eighty nine percent of

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<v Speaker 6>the online search market. Google denies the government's claims. US

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<v Speaker 6>District Judge Ahmed Meta is expected to issue a decision

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<v Speaker 6>next year in Washington. I'm Nathan Hager Bloomberg Radio.

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<v Speaker 2>We go to the oil market next, and the latest

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<v Speaker 2>data from OPEC plus showing global oil markets will face

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<v Speaker 2>a supply shortfall of more than three million barrels a

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<v Speaker 2>day in the next quarter. Now, this obviously comes after

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<v Speaker 2>both Saudi Arabia and Russia decided to extend their production

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<v Speaker 2>cuts until the end of twenty twenty three. Now, today's

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<v Speaker 2>news did send oil prices surging WTI. We talked about

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<v Speaker 2>it rising today by around one point eight percent. Brent

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<v Speaker 2>crude back above ninety two a barrel. We heard earlier

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<v Speaker 2>today from Francisco Blanche. He is the head of Global

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<v Speaker 2>Commodities and Derivatives at Bank of America. He thinks Saudi

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<v Speaker 2>Arabia and OPEC plus will become more cautious if prices

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<v Speaker 2>continue to rise.

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<v Speaker 7>Well, I think that the solvies have always been very

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<v Speaker 7>cautious about avoiding demand destruction episodes, and certainly I think

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<v Speaker 7>they will become cautious again if prices break through one

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<v Speaker 7>hundred dollars a barrel, because, as we saw last year

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<v Speaker 7>with gas, with nature gas, if prices do get out

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<v Speaker 7>of whack, you can loose all the demand European nature

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<v Speaker 7>gas demand from industry, remember is lowered today than it

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<v Speaker 7>was at this last year with a ninety percent declining

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<v Speaker 7>priceis so you have to be careful what you wish for.

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<v Speaker 2>Francisco Blanche there from Bank of America. By the way,

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<v Speaker 2>the International Energy will report its outlook on Wednesday.

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<v Speaker 3>All right, We're going to stay with oil companies and

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<v Speaker 3>have a look at BPCO Bernard Looney because he's resigned

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<v Speaker 3>effective immediately. The companies saying that the Luney didn't fully

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<v Speaker 3>disclose personal relationships. The surprise development leaving the oil and

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<v Speaker 3>gas giant leader is at a crucial juncture. BPS started

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<v Speaker 3>to persuade investors to stick with it through a costly

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<v Speaker 3>transition to low carbon energy.

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<v Speaker 1>We heard more from Bloomberg's Alex Steele.

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<v Speaker 8>Looney had made the point that they were going to

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<v Speaker 8>be investing less and less and less in oil and gas.

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<v Speaker 8>But as the returns for alternative energy got worse and

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<v Speaker 8>worse and worse, they cannot live up the returns that

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<v Speaker 8>you're going to get in an oil and gas field.

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<v Speaker 8>So we had to pair back some of that lack

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<v Speaker 8>of investment.

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<v Speaker 1>That is Bloomberg's Alex Steel.

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<v Speaker 3>Now, BP didn't name any potential successor to Luni, but

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<v Speaker 3>the chief financial officer will replace him on an interim basis.

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<v Speaker 3>That's some ochinlos BP typically has chosen CEOs from among

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<v Speaker 3>the ranks of its own top executives.

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<v Speaker 2>We go to China, next to where home sales in

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<v Speaker 2>the country seem to be losing momentum, even though authorities

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<v Speaker 2>recently loosened restrictions on mortgages. Bloomberg zivon Men has more

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<v Speaker 2>from Hong Kong.

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<v Speaker 9>Checks by industry watchers are saying that the rebound is

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<v Speaker 9>fading in China's Tier one cities. In Beijing, sales of

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<v Speaker 9>existing homes plunged thirty five percent in less than two weeks.

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<v Speaker 9>That's according to one of China's top property agencies, cent

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<v Speaker 9>A Line. Across China, transactions continue to drop follow more

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<v Speaker 9>than twenty percent by area. The Fatie rebound raises doubts

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<v Speaker 9>on whether the steps are enough to revive the market

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<v Speaker 9>before a crucial busy season, and kondomists say more aggressive

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<v Speaker 9>easing measures may be needed to ensure a strong recovery

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<v Speaker 9>in Hong Kong. I'm ivon Mann Bloomberg Radio.

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<v Speaker 2>The latest survey of global fund managers from Bank of

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<v Speaker 2>America was very interesting. It shows a dramatic shift in investors'

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<v Speaker 2>equity allocation, a rush toward the US and a huge

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<v Speaker 2>exodit from emerging markets. EM equity allocation down in the

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<v Speaker 2>month of September to net nine percent overweight. But here's

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<v Speaker 2>the thing. We were net thirty four percent overweight in August. Now,

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<v Speaker 2>this is largely a story about China and a lot

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<v Speaker 2>of the negative pessimism or the negative sentiment that we

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<v Speaker 2>have seen there. In fact, this a BFA survey also

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<v Speaker 2>shows the most likely source of any potential systemic credit

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<v Speaker 2>event will be in the China real estate market. Daybreak

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<v Speaker 2>Asia and an update on global news is next. We

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<v Speaker 2>begin with US House Speaker Kevin McCarthy launching an impeachment

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<v Speaker 2>probe in President Joe Biden at Baxter with more from

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<v Speaker 2>the Bloomberg newsroom.

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<v Speaker 10>Yeah, that's exactly where Douglas McCarthy calls a Biden administration

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<v Speaker 10>a culture of corruptions.

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<v Speaker 11>Else, Republicans have uncovered serious and credible allegations into President

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<v Speaker 11>Biden's conduct, and together these allegations paint a picture of

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<v Speaker 11>a culture of corruption.

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<v Speaker 10>Now, McCarthy says, we'll focus on sun Hunter.

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<v Speaker 11>I do not make this decision lightly, and regardless of

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<v Speaker 11>your party or who you voted for, these facts should

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<v Speaker 11>concern all Americans.

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<v Speaker 10>Center Majority of Leader Chuck Schumer says, while he feels

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<v Speaker 10>for the pressure McCarthy's feeling from the right wing of

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<v Speaker 10>his party, I.

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<v Speaker 1>Think the impeachment inquiry is absurd.

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<v Speaker 4>The American people want us to do something that will

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<v Speaker 4>make their lives better not go off on these chases

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<v Speaker 4>and witch hunts now.

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<v Speaker 10>Bloomberg's Wendy Benjaminson says, politically, his use of terms like witch.

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<v Speaker 12>Hunt Democrats who are saying this is a witch hunt

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<v Speaker 12>and that this is how dare they do the inquiry

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<v Speaker 12>without a full House vote ahead of time? And it's

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<v Speaker 12>funny to watch one party see the other party using

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<v Speaker 12>their own playbook against them.

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<v Speaker 13>No.

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<v Speaker 10>Republicans also have condemned Biden for what they call the

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<v Speaker 10>weaponization of the Justice Department. New COVID formulated shots in

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<v Speaker 10>the US have gotten a green light from the CDC

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<v Speaker 10>Advisory Panel. The panel, recommending the full CDC itself recommend

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<v Speaker 10>use for those six months and older, says it could

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<v Speaker 10>allow the shots to be administered as early as this week. Now,

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<v Speaker 10>of course, that will depend on individual healthcare providers getting

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<v Speaker 10>supply and scheduling appointments and those kinds of things. North

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<v Speaker 10>Korean leader Kim jonghan has been meeting with Russian officials,

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<v Speaker 10>presumably about an arms dealer, even though the US is

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<v Speaker 10>warning against it. Brigadier General Patrick Ryder, speaking for the

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<v Speaker 10>White House.

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<v Speaker 14>We would call on North Korea to meet its previous

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<v Speaker 14>stated public commitments not to supply weapons to Russia, which

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<v Speaker 14>will only end up prolonging the unnecessary war in Ukraine.

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<v Speaker 10>And Vladimir Putin is being quoted in Russian media saying

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<v Speaker 10>war will continue for a while. Republican Senator Tommy Tubberville

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<v Speaker 10>says he will continue to block the promotions of military

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<v Speaker 10>people until the Biden administration removes the executive policy regarding

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<v Speaker 10>DoD travel and reproductive rights. In an exclusive Bloomberg interview.

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<v Speaker 15>Twenty twenty three, they want to change it with a

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<v Speaker 15>memo from the White House. We're not a communist country.

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<v Speaker 15>Everything that's made policy and law goes through Congress. And

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<v Speaker 15>I told them that if you change it, and I'm

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<v Speaker 15>gonna block your admirals and generals. Well, at that time

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<v Speaker 15>there was one or two. Now we're up to three hundred.

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<v Speaker 15>I think they're starting to believe me that I meant

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<v Speaker 15>what I said.

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<v Speaker 10>And on balance of power assess a solution simple, let's.

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<v Speaker 15>Just vote on it and if it passes, it passes,

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<v Speaker 15>it doesn't.

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<v Speaker 1>It doesn't. Yeah.

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<v Speaker 10>Critics argue he's paralyzing The Pentagon Global News, powered by

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<v Speaker 10>more than twenty seven hundred journalists and analysts in over

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<v Speaker 10>one hundred and twenty countries in San Francisco. I'm Ed

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<v Speaker 10>Baxter and this is Bloomberg.

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<v Speaker 2>Let's get to our guest, Belita Onng is with us.

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<v Speaker 2>Belita is a chairman of Dalton Investments. She joins us

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<v Speaker 2>from Santa Barbara, California. Belita, it's always a pleasure. Thank

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<v Speaker 2>you for making time to chat with us. Maybe you

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<v Speaker 2>had a chance to look at the Bank of America

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<v Speaker 2>survey today of global fund managers. A big move away

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<v Speaker 2>from emerging market right now? Is is that a strategy

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<v Speaker 2>that you would adopt at the moment given the weakness

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<v Speaker 2>that we have been describing for the Chinese economy.

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<v Speaker 13>Hello Doug, thanks for having me back. The movement, as

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<v Speaker 13>you mentioned, has everything to do with China and the

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<v Speaker 13>reducing of exposure to China, which was for decades an

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<v Speaker 13>extremely profitable place to invest in. You know, from our

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<v Speaker 13>points of view, we've not invested since jack Ma was

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<v Speaker 13>hauled in to be re educated, which is now now

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<v Speaker 13>a few years ago, and simply because of the way

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<v Speaker 13>we invest, we look for value companies that are led

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<v Speaker 13>by entrepreneurs who's interests are aligned with ours, and in China,

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<v Speaker 13>the most successful entrepreneur was punished for being too successful,

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<v Speaker 13>and on top of that that was followed by the

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<v Speaker 13>whole private tutoring shutdown. So one day you had a

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<v Speaker 13>great business in the next day was gone. So given

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<v Speaker 13>those types of risks, it's just not a market that

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<v Speaker 13>we can invest in. That's not to say that you

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<v Speaker 13>can't make money in China. I don't believe that at all.

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<v Speaker 13>I think you can. It's just not the way we

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<v Speaker 13>do it because it doesn't fit with our investment criteria.

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<v Speaker 13>And if we don't invest in China, then there are

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<v Speaker 13>many other places to invest in. So it's not as

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<v Speaker 13>though being shout out of China is, you know, is

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<v Speaker 13>a death knell to our investment capabilities across Asia.

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<v Speaker 3>But that you know, So there has been a kind of,

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<v Speaker 3>I suppose, feeling that the regulatory clamp down has perhaps disappeared,

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<v Speaker 3>but it can come back in any stage. But it

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<v Speaker 3>cares you mentioned the other places you can invest and

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<v Speaker 3>make money to where are you looking well?

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<v Speaker 13>We are still very positive on being able to add

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<v Speaker 13>returns above the benchmark in both Japan as well as

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<v Speaker 13>in India. And in Japan's largely to do with the

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<v Speaker 13>fact that Japan's in there's a great spot right now

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<v Speaker 13>where finally the economy is growing. Finally the deflation they've

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<v Speaker 13>suffered for decades seems to be reversing. So we finally

0:11:46.120 --> 0:11:50.080
<v Speaker 13>saw a small increase in wages in the last and negotiations,

0:11:50.200 --> 0:11:53.680
<v Speaker 13>and the boj is inclined I believe to continue to

0:11:53.760 --> 0:11:56.200
<v Speaker 13>keep rates as low as possible through the next round

0:11:56.240 --> 0:12:01.280
<v Speaker 13>of negotiations so that they can keep wage increases, thereby

0:12:01.360 --> 0:12:04.400
<v Speaker 13>fueling consumer spending for the economy. So it's sort of

0:12:04.440 --> 0:12:07.959
<v Speaker 13>like opposite world in Japan, where with the rest of

0:12:07.960 --> 0:12:11.600
<v Speaker 13>world's concerned about inflation, but Japan's been fighting deflation for

0:12:11.640 --> 0:12:13.560
<v Speaker 13>so long that they won't give up that fight until

0:12:13.559 --> 0:12:16.960
<v Speaker 13>they see that it's really well ensconced.

0:12:17.120 --> 0:12:20.000
<v Speaker 2>You were talking about the entrepreneurial spirit, and I'm wondering

0:12:20.000 --> 0:12:23.520
<v Speaker 2>whether that applies to Vietnam. And the indication here is

0:12:23.559 --> 0:12:27.960
<v Speaker 2>that there is some opportunity to grow for the local

0:12:27.960 --> 0:12:30.839
<v Speaker 2>economy and technological terms, and I'm wondering whether that's a

0:12:30.880 --> 0:12:32.000
<v Speaker 2>market that you would consider.

0:12:32.280 --> 0:12:34.160
<v Speaker 13>Yes, so certainly a market we would consider. In fact,

0:12:34.160 --> 0:12:36.199
<v Speaker 13>we're in the process of getting access to that market now,

0:12:36.280 --> 0:12:39.240
<v Speaker 13>because you need special access to be able to invest

0:12:39.679 --> 0:12:42.800
<v Speaker 13>in the domestic market there, but it is a market

0:12:42.800 --> 0:12:44.920
<v Speaker 13>that we think is becoming more and more interesting. And

0:12:45.000 --> 0:12:46.800
<v Speaker 13>in the past when we have invested, we've done it

0:12:46.840 --> 0:12:50.120
<v Speaker 13>through closed end funds, which are run by people we

0:12:50.160 --> 0:12:53.360
<v Speaker 13>know well and which often traded a discount. But we're

0:12:53.400 --> 0:12:56.559
<v Speaker 13>actually taking steps to invest directly ourselves. So yes, it's

0:12:56.600 --> 0:12:58.560
<v Speaker 13>a market that we find interesting. But in Japan, if

0:12:58.600 --> 0:13:00.520
<v Speaker 13>I could go back to that, in addition to the

0:13:00.559 --> 0:13:03.200
<v Speaker 13>fact that the economy is doing well, the cheap n

0:13:03.400 --> 0:13:07.840
<v Speaker 13>makes car exports, for example, do extremely well. And you've

0:13:07.840 --> 0:13:10.040
<v Speaker 13>got a lot of foreign inflows that we haven't seen

0:13:10.080 --> 0:13:13.800
<v Speaker 13>in ages, which also helps with the domestic market. And

0:13:13.840 --> 0:13:16.640
<v Speaker 13>on top of all that, you've had this finally you're

0:13:16.679 --> 0:13:20.720
<v Speaker 13>seeing the results of eight nine years of corporate Governan's

0:13:20.760 --> 0:13:24.440
<v Speaker 13>reform lead to much better behavior by managements in Japan.

0:13:25.040 --> 0:13:29.200
<v Speaker 13>Increase in buybacks, dividends, more m and A and more

0:13:29.240 --> 0:13:31.880
<v Speaker 13>management buyouts. So you know, everything's going well for Japan

0:13:32.000 --> 0:13:32.520
<v Speaker 13>right now.

0:13:32.440 --> 0:13:36.280
<v Speaker 3>Belita very quickly, so you do also away from Japan

0:13:36.480 --> 0:13:39.800
<v Speaker 3>look at the I suppose de globalization d risking story.

0:13:40.360 --> 0:13:44.080
<v Speaker 13>Yes, absolutely, the de risking story is very good for

0:13:44.160 --> 0:13:48.920
<v Speaker 13>certain countries India, for example. She's the prettiest girl of

0:13:48.960 --> 0:13:51.559
<v Speaker 13>the dance. Everybody wants to work with her, Dance.

0:13:51.320 --> 0:13:53.760
<v Speaker 2>With her, the prettiest girl in the dance. We'll leave

0:13:53.760 --> 0:13:56.319
<v Speaker 2>it there. Balita, always a pleasure. Balita on, Chairman of

0:13:56.360 --> 0:14:00.760
<v Speaker 2>Dalton Investments. This is Bloomberg Day Break, a your morning

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