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Speaker 1: Good morning.

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

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Speaker 2: stories we're following today.

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Speaker 1: We begin with a policy in China that has broad

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Speaker 1: implications for the global tech sector. Beijing plans to expand

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Speaker 1: its ban on Apple iPhone use in sensitive government departments

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Speaker 1: and state owned companies. Sources say several agencies are already

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Speaker 1: instructing staff not to bring iPhones to work. The restrictions

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Speaker 1: may broad into more firms and organizations. Bloomberg Chief Tech

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Speaker 1: correspondent Mark German says, this may just be a starting

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Speaker 1: point for the Chinese government.

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Speaker 3: Is there something that's going to happen next in terms

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Speaker 3: of the Chinese consumer being able to buy the Apple devices?

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Speaker 3: Are there going to be limits? There is the Chinese

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Speaker 3: government going to begin clamping down on Apple's ability to sell,

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Speaker 3: offer services, offer retail stores, offer Apple care and support.

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Speaker 3: So there clearly is a potential domino effect that I

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Speaker 3: think investors are more afraid of, rather than just lost

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Speaker 3: sales to Chinese government workers.

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Speaker 1: And Bloomberg's Mark German says the blockade coincides with China's

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Speaker 1: effort to reduce its reliance on American software. Apple is

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Speaker 1: popular in China. It gets about a fifth of its

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Speaker 1: revenue there. Checking Apple shares in the pre market, they

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Speaker 1: are down two point six percent.

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Speaker 2: Well elsewhere in tank This morning, Nathan Google is making

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Speaker 2: a move aimed at protecting elections from artificial intelligence. In

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Speaker 2: Bloomberg's Aid Baxter has the story.

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Speaker 4: Google is saying it will soon require all election advertisers

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Speaker 4: disclosed when their messages have been altered or created by

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Speaker 4: AI tools. The policy update, which applies starting mid November,

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Speaker 4: requires election advertisers across Google's platforms to alert viewers when

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Speaker 4: their ads contain images, video, or audio from generative AI.

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Speaker 4: They will have to use prominent language like this audio

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Speaker 4: as computer generated or this image does not depict real events.

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Speaker 4: Google says it will improve transparency. In San Francisco, I'm

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Speaker 4: at Baxter Bloomberg Radio.

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Speaker 1: Okay, ed, thank you. President Biden's headed to the G

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Speaker 1: twenty summit in India later this afternoon. He's aiming to

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Speaker 1: seize on the absence of two key adversaries. Russian President

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Speaker 1: Vladimir Putin and Chinese President Shi Jinping both opted to

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Speaker 1: skip this year's gathering. President Biden will look to improve

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Speaker 1: ties with countries like Brazil, South Africa and India. They've

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Speaker 1: sought closer ties with China and declined to take sides

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Speaker 1: after Russia's invasion of Ukraine.

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Speaker 2: Well back here at home, Nathan, Texas is teetering on

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Speaker 2: the edge of blackout. It's the state's power grade operator

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Speaker 2: ERKAD issued its first emergency declaration in over two years

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Speaker 2: in response to shrinking power supplies. Spot power prices surged

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Speaker 2: to more than five thousand dollars a megawatt hour, quadruple

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Speaker 2: the cost of the average supply Urkatt had to draw

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Speaker 2: on reserves, and officials are urging customers to take conservation efforts.

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Speaker 2: Texas is also warning medically fragile residents who need oxygen

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Speaker 2: and similar aids to have backup plans in place.

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Speaker 1: In the nation's capital, Karen, the Justice Department plans to

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Speaker 1: file new charges against President Biden's son, Hunter Bloomberg's Nancy

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Speaker 1: Lyons has that story.

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Speaker 5: An indictment of Hunter Biden is expected by the end

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Speaker 5: of the month. That's according to documents filed in a

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Speaker 5: Delaware court by Special counsel David Weiss. The son of

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Speaker 5: President Biden had agreed in principle to plead guilty to

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Speaker 5: federal tax charges and enter a pre trial diversion agreement

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Speaker 5: related to a gun charge, but that plea deal collapse

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Speaker 5: back in July. Prosecutors have not specified what charges they

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Speaker 5: intend to file against the President's son, Nancy lyons Bloomberg Radio.

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Speaker 2: Right, Nancy, thanks for a strike warning from the head

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Speaker 2: of the United Auto Workers. Bloombergy. John Tucker joins us

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Speaker 2: with the latest. Good Morning, John Karen.

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Speaker 6: President Sean fains as the union plans to go on

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Speaker 6: strike against any Detroit automaker that hasn't reached a new

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Speaker 6: agreement by the time contracts expire next week. The contracts

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Speaker 6: with General Motors, Delantis, and Ford will all expire just

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Speaker 6: before midnight September fourteenth. All in, the union's proposals would

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Speaker 6: cost each of the big three automakers around eighty billion dollars.

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Speaker 6: The union will meet today with GM Forward made an

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Speaker 6: offer that includes nine percent wage increases plus payments. Those

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Speaker 6: talks are farthest along. An agreement with one automaker likely

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Speaker 6: would set the template for the others. Live in New York.

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Speaker 6: I'm John Tucker, Bloomberg Radio.

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Speaker 1: All right, John, Thanks, you got more company news this morning.

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Speaker 1: Sources tell Bloomberg the online grocery delivery startup Instacart is

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Speaker 1: preparing to set a price range for its initial public offering.

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Speaker 1: Bloomberg's Charlie Pellett has that the.

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Speaker 7: Sources say the company is considering pricing it's listing September nineteenth,

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Speaker 7: and then start trading the following day. They say the

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Speaker 7: company's plans are fluid and the timeline could still change

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Speaker 7: depending on market conditions. Instacart's listing could further energize an

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Speaker 7: IPO market that has been warming and fits and starts.

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Speaker 7: Semiconductor designer ARM Holding set a price range for its IPO,

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Speaker 7: which is expected to start trading in the biggest listing

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Speaker 7: of the year as early as next week in New York.

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Speaker 7: Charlie Pellett Bloomberg Radio.

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Speaker 2: All right, Charlie, thanks to the Broader Economy Now. The

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Speaker 2: ism US Services Index rose to a six month high yesterday,

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Speaker 2: but stocks declined amid speculation the strong data will keep

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Speaker 2: rates higher for longer. Bloomberg Macros trateg just Mark Hudmore

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Speaker 2: says evidence from yesterday's Major Book suggests the Fed's rate

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Speaker 2: hike path remains uncertain.

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Speaker 8: I thought the most important dedies was actually the Beige

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Speaker 8: Book which says backward looking, there's been some good stuff

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Speaker 8: from the tourism and leisure sector, but the rest of

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Speaker 8: the report was presenting warning signs about the consumer. I

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Speaker 8: still believe that US softness is coming in the fourth quarter,

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Speaker 8: and I think we're going to have a recession still

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Speaker 8: starting around the end of the fourth quarter. Maybe a

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Speaker 8: dirty next year, but I still go for the end

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Speaker 8: of this year.

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Speaker 2: And it's time now for a look at some of

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Speaker 2: the other stories making news around the world. For that,

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Speaker 2: we're joined by Bloomberg. See Me, Morris, Save Me, Good morning.

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Speaker 9: Good morning, Karen. The Senate is going to start moving

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Speaker 9: a package of government funding bills next week, as Congress

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Speaker 9: is racing to avoid a shutdown at the end of

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Speaker 9: this month. Senate Minority Leader Mitch McConnell says he appreciates

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Speaker 9: the support that he's seen from President Biden.

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Speaker 7: He is supporting the uffard and I intend to continue

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Speaker 7: to support it.

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Speaker 6: I hope the majority of my colleagues will field the

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Speaker 6: same way.

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Speaker 9: Now, the President and congressional leaders are focused on a

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Speaker 9: passage of a stop gap funding measure to buy a

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Speaker 9: little time while lawmakers iron out a full budget. Time

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Speaker 9: is running short though the House is scheduled to meet

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Speaker 9: for only eleven days before the government's fiscal year ends

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Speaker 9: on September thirtieth. It was the first televised hearing in

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Speaker 9: former President Trump's election interference case in Georgia. Fulton County

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Speaker 9: Judge Scott McAfee laid out how these hearings involving the

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Speaker 9: nineteen co defendants are going to move forward.

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Speaker 10: The plan would be to try to resolve as many

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Speaker 10: of these issues as we can this week and to

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Speaker 10: begin entering scheduling orders for the remaining defendants by either

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Speaker 10: the end of this week or the early next week.

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Speaker 11: Now.

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Speaker 9: Judge McAfee denied a motion for one of Trump's co defendants,

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Speaker 9: lawyer Kenneth Cheesebro, to sever his case. He said he

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Speaker 9: would later decide on whether lawyer Sidney Powell would severhears.

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Speaker 9: Prosecutors expect a joint trial to take four months. Former

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Speaker 9: President Trump, meanwhile, says he's willing to take the witness

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Speaker 9: stand in his own defense if his criminal cases do

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Speaker 9: go to trial. He told a radio interview that he

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Speaker 9: would absolutely look forward to testifying, but he also said

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Speaker 9: he believes the cases are going.

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Speaker 12: To be dismissed.

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Speaker 9: The former president has pleaded not guilty in four cases

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Speaker 9: against him in New York, Georgia, Florida, and Washington, d C.

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Speaker 9: The oppressive heat still impacting millions of Americans, and schools

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Speaker 9: this week in New England to scramble to get air

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Speaker 9: conditioning in classrooms. In Philadelphia, officials announcing schools that don't

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Speaker 9: have air conditioning are going to be dismissed early for

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Speaker 9: the rest of this week. Englewood Health EMS medical director

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Speaker 9: doctor Barbara Streedman says children are among the most at

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Speaker 9: risk in the heat. Children have a different physiology than adults,

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Speaker 9: and the very young and the very old don't tolerate

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Speaker 9: heat as well, especially when the humidity is higher. More

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Speaker 9: than fifty million people have been under heat alerts all

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Speaker 9: week in the US, from Minnesota to Texas to Massachusetts.

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Speaker 9: Global News twenty four hours a day, powered by more

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Speaker 9: than twenty seven hundred journalists and analysts in more than

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Speaker 9: one hundred twenty countries. I'm Amy Morris. This is Bloomberg.

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Speaker 2: Karen, all right, thank you. Now we get a look

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Speaker 2: at sports and they Brian John Stashauer. John, good morning, Karen.

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Speaker 12: It's opening night of the NFL. Not surprising. The Kansas

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Speaker 12: City Chiefs are in the spotlight of the defending Super

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Speaker 12: Bowl champions. They've won seven straight AFC West titles. They've

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Speaker 12: played the NFC Championship Game each of the last five years.

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Speaker 12: It is surprising for the Detroit Lions to be featured,

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Speaker 12: usually an NFL doormat, but they finished last season winning

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Speaker 12: eight of their last ten games. Chiefs may not have

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Speaker 12: their start tight end Travis Kelsey. He's questionable with a

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Speaker 12: knee injury. The forty nine ers have gotten their star

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Speaker 12: pass rusher Nick Bosa back in camp. He ended his

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Speaker 12: forty four day holdout agreed to a massive contract with

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Speaker 12: the Niners five years, one hundred and seventy million. Posta

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Speaker 12: becomes the highest paid defensive player in NFL history. At

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Speaker 12: the US Open Arena, Sablanki another easy victory. She has

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Speaker 12: yet to lose a set. She's advanced of the semifinals.

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Speaker 12: She's been in the semis of all four Grand Slam

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Speaker 12: this year. Coco Goff has her semifinal match in New

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Speaker 12: York today and the men's semis will be played tomorrow.

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Speaker 12: Danil Medvedev advanced with a straight set win over fellow

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Speaker 12: Russian Andre rub Levin. Last night, Carlos Alcarez, the top

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Speaker 12: seed independent champ, also won in straight sets. Baseball Red

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Speaker 12: Sox lost again at Tampa Bay, three to one. They've

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Speaker 12: lost fifteen of sixteen. At Tropiccanafield, the Nationals rally scored

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Speaker 12: nineteen ety to beat the Mets three to two. The

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Speaker 12: Orioles fifth straight win was ten to three over the Angels.

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Speaker 12: The Giants beaten by the Cubs eight to two. Rare

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Speaker 12: win for the Eights five to two over Toronto. John

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Speaker 12: stashaware of Bloomberg Sports.

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Speaker 13: From coast to coast, from New York to San Francisco,

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Speaker 13: Boston to Washington, DC, nationwide on siriusxam, the Bloomberg Business

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Speaker 13: app in Bloomberg dot com. This is Bloomberg Daybreak.

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Speaker 7: Good morning.

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Speaker 1: I'm Nathan Hagar. Apple's business in China is getting a

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Speaker 1: lot more complicated. We've reported this week that the Chinese

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Speaker 1: government is barring its workers from using their iPhones while

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Speaker 1: they're on the job. Now, sources tell Bloomberg News that

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Speaker 1: band could be extended to state owned businesses and other

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Speaker 1: government controlled enterprises. It's a move that could erode Apple's

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Speaker 1: position in its biggest market outside the US and for

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Speaker 1: more on this, we're joined by Alex Webb, who covers

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Speaker 1: the tech sector for US here on Bloomberg Radio. Alex,

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Speaker 1: good morning. Why this push now to crack down on

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Speaker 1: iPhones specifically in China. I mean, it wasn't that long

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Speaker 1: ago that the CEO of Apple, Tim Cook, was praising

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Speaker 1: his company's relationship with Beijing.

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Speaker 11: Yeah, and of course you know Apple employs millions of

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Speaker 11: people both directly and indirectly, well Indre Lismos through Fox

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Speaker 11: Gone another contract manufacturers in that part of the world,

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Speaker 11: So there is a real kind of symbiotic relationship between

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Speaker 11: the country and the company. But it sort of looks

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Speaker 11: like we don't entirely know the rationale for this. It

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Speaker 11: is based on sources reporting. It looks like there could

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Speaker 11: be two reasons for it versus the sort of tit

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Speaker 11: for tap. We've seen obviously a crackdown on the supply

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Speaker 11: of some important components into the Chinese market. We've also

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Speaker 11: seen the US ban the use of TikTok in government agencies.

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Speaker 11: This is on a state level at the moment, but

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Speaker 11: it's been the case in many states where TikTok is

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Speaker 11: not allowed to operate on government networks. But at the

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Speaker 11: same time you also want to well, maybe they can

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Speaker 11: justify it through security reasons that actually in state controlled

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Speaker 11: or state agencies, we have started to see a pushback

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Speaker 11: on the role of for instance, consultants, and do they

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Speaker 11: have an outsized role because of their proximity to foreign groupings.

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Speaker 11: There are many reasons why this might be the case.

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Speaker 11: That doesn't necessarily mean that it's significant for Apple itself.

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Speaker 1: And it is interesting to think about it potentially as

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Speaker 1: a national security rationale for China when we've heard US

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Speaker 1: government officials use that same rationale to try to limit

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Speaker 1: China's access to cutting edge technology, how is China doing

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Speaker 1: when it comes to its own development of some of

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Speaker 1: that higher end technology despite US sanctions.

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Speaker 11: So we did see some really interesting news in the

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Speaker 11: past week or so that Huawei, which is the biggest

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Speaker 11: Chinese hardware maker technology hardware maker, has released a new

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Speaker 11: phone called the Mate sixty Pro, which includes a chip

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Speaker 11: that can operate very close to the cutting edge. It's

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Speaker 11: built on the advanced seven nanometer, an advanced nanometer processor, which,

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Speaker 11: it seems, according to Bloomberg tear Down, has been manufactured

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Speaker 11: by China's domestic chip making giant Semiconductor Manufacturing International Corp.

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Speaker 11: Which is their equivalent of TSMC, is not quite as big,

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Speaker 11: but that's their effort to really on shore and more

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Speaker 11: of that. CORTEC themselves and many people didn't think that

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Speaker 11: China have these capabilities. The fact that it seems they

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Speaker 11: do is a turn up for the books. Now it's

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Speaker 11: a caveat to this. We don't know where they're able

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Speaker 11: to do it at scale, where they can do it

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Speaker 11: with the sort of it's getting to make the economics

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Speaker 11: work in the same way that TSMC can, but it

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Speaker 11: shows they're a bit closer to the cutting edge than

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Speaker 11: many had anticipated.

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Speaker 1: Well, if China does continue to get closer to the

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Speaker 1: cutting edge and keep up this crackdown on Apple devices,

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Speaker 1: what could it mean for Apple's position in the Chinese market.

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Speaker 11: Well, I mean, it clearly doesn't help, but you just

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Speaker 11: put it in a bit of context. Right, So Apple

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Speaker 11: had has trailing twelve month revenue in the order of

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Speaker 11: seventy three billion dollars in Greater China, which also includes Taiwan.

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Speaker 11: But when we've looked at what has happened with say

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Speaker 11: TikTok in the US and the crackdown and using that

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Speaker 11: in government agencies doesn't really seem to have had any

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Speaker 11: meaningful impact on TikTok's trajectories. So yes, these government controlled companies,

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Speaker 11: the likes of Petro China, they do employ millions of people.

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Speaker 11: Let's wait and see when we get to earn his

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Speaker 11: schools to see if that actually has any meaningful impact.

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Speaker 11: If you judge it by the TikTok experience, the implication

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Speaker 11: would be it may not be significant.

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Speaker 1: Our last minute, we're waiting and seeing for Apple's next

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Speaker 1: product launch as well. I think it's coming up next week?

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Speaker 13: Right?

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Speaker 1: Does that put more pressure on Apple to deliver when

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Speaker 1: it comes to what's coming next?

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Speaker 11: Look, there's always pressure on Apple in terms of what

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Speaker 11: comes next. The thing they have managed to do we

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Speaker 11: are going to see you, So they are going to

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Speaker 11: We're going to see new iPhones lightly next week and

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Speaker 11: probably in new Apple Watch as well. But the big

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Speaker 11: story of Apple is how they have managed to diversify

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Speaker 11: away from the hardware into services, which not only is

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Speaker 11: higher margin, but it also ties people more tightly to

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Speaker 11: their hardware, and that is why people still keep buying

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Speaker 11: these things even without major upgrades.

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