Speaker 1: Good morning.
Speaker 2: I'm Nathan Hager and I'm Garen Moscow. Here are the
Speaker 2: stories we're following today.
Speaker 1: We begin with a policy in China that has broad
Speaker 1: implications for the global tech sector. Beijing plans to expand
Speaker 1: its ban on Apple iPhone use in sensitive government departments
Speaker 1: and state owned companies. Sources say several agencies are already
Speaker 1: instructing staff not to bring iPhones to work. The restrictions
Speaker 1: may broad into more firms and organizations. Bloomberg Chief Tech
Speaker 1: correspondent Mark German says, this may just be a starting
Speaker 1: point for the Chinese government.
Speaker 3: Is there something that's going to happen next in terms
Speaker 3: of the Chinese consumer being able to buy the Apple devices?
Speaker 3: Are there going to be limits? There is the Chinese
Speaker 3: government going to begin clamping down on Apple's ability to sell,
Speaker 3: offer services, offer retail stores, offer Apple care and support.
Speaker 3: So there clearly is a potential domino effect that I
Speaker 3: think investors are more afraid of, rather than just lost
Speaker 3: sales to Chinese government workers.
Speaker 1: And Bloomberg's Mark German says the blockade coincides with China's
Speaker 1: effort to reduce its reliance on American software. Apple is
Speaker 1: popular in China. It gets about a fifth of its
Speaker 1: revenue there. Checking Apple shares in the pre market, they
Speaker 1: are down two point six percent.
Speaker 2: Well elsewhere in tank This morning, Nathan Google is making
Speaker 2: a move aimed at protecting elections from artificial intelligence. In
Speaker 2: Bloomberg's Aid Baxter has the story.
Speaker 4: Google is saying it will soon require all election advertisers
Speaker 4: disclosed when their messages have been altered or created by
Speaker 4: AI tools. The policy update, which applies starting mid November,
Speaker 4: requires election advertisers across Google's platforms to alert viewers when
Speaker 4: their ads contain images, video, or audio from generative AI.
Speaker 4: They will have to use prominent language like this audio
Speaker 4: as computer generated or this image does not depict real events.
Speaker 4: Google says it will improve transparency. In San Francisco, I'm
Speaker 4: at Baxter Bloomberg Radio.
Speaker 1: Okay, ed, thank you. President Biden's headed to the G
Speaker 1: twenty summit in India later this afternoon. He's aiming to
Speaker 1: seize on the absence of two key adversaries. Russian President
Speaker 1: Vladimir Putin and Chinese President Shi Jinping both opted to
Speaker 1: skip this year's gathering. President Biden will look to improve
Speaker 1: ties with countries like Brazil, South Africa and India. They've
Speaker 1: sought closer ties with China and declined to take sides
Speaker 1: after Russia's invasion of Ukraine.
Speaker 2: Well back here at home, Nathan, Texas is teetering on
Speaker 2: the edge of blackout. It's the state's power grade operator
Speaker 2: ERKAD issued its first emergency declaration in over two years
Speaker 2: in response to shrinking power supplies. Spot power prices surged
Speaker 2: to more than five thousand dollars a megawatt hour, quadruple
Speaker 2: the cost of the average supply Urkatt had to draw
Speaker 2: on reserves, and officials are urging customers to take conservation efforts.
Speaker 2: Texas is also warning medically fragile residents who need oxygen
Speaker 2: and similar aids to have backup plans in place.
Speaker 1: In the nation's capital, Karen, the Justice Department plans to
Speaker 1: file new charges against President Biden's son, Hunter Bloomberg's Nancy
Speaker 1: Lyons has that story.
Speaker 5: An indictment of Hunter Biden is expected by the end
Speaker 5: of the month. That's according to documents filed in a
Speaker 5: Delaware court by Special counsel David Weiss. The son of
Speaker 5: President Biden had agreed in principle to plead guilty to
Speaker 5: federal tax charges and enter a pre trial diversion agreement
Speaker 5: related to a gun charge, but that plea deal collapse
Speaker 5: back in July. Prosecutors have not specified what charges they
Speaker 5: intend to file against the President's son, Nancy lyons Bloomberg Radio.
Speaker 2: Right, Nancy, thanks for a strike warning from the head
Speaker 2: of the United Auto Workers. Bloombergy. John Tucker joins us
Speaker 2: with the latest. Good Morning, John Karen.
Speaker 6: President Sean fains as the union plans to go on
Speaker 6: strike against any Detroit automaker that hasn't reached a new
Speaker 6: agreement by the time contracts expire next week. The contracts
Speaker 6: with General Motors, Delantis, and Ford will all expire just
Speaker 6: before midnight September fourteenth. All in, the union's proposals would
Speaker 6: cost each of the big three automakers around eighty billion dollars.
Speaker 6: The union will meet today with GM Forward made an
Speaker 6: offer that includes nine percent wage increases plus payments. Those
Speaker 6: talks are farthest along. An agreement with one automaker likely
Speaker 6: would set the template for the others. Live in New York.
Speaker 6: I'm John Tucker, Bloomberg Radio.
Speaker 1: All right, John, Thanks, you got more company news this morning.
Speaker 1: Sources tell Bloomberg the online grocery delivery startup Instacart is
Speaker 1: preparing to set a price range for its initial public offering.
Speaker 1: Bloomberg's Charlie Pellett has that the.
Speaker 7: Sources say the company is considering pricing it's listing September nineteenth,
Speaker 7: and then start trading the following day. They say the
Speaker 7: company's plans are fluid and the timeline could still change
Speaker 7: depending on market conditions. Instacart's listing could further energize an
Speaker 7: IPO market that has been warming and fits and starts.
Speaker 7: Semiconductor designer ARM Holding set a price range for its IPO,
Speaker 7: which is expected to start trading in the biggest listing
Speaker 7: of the year as early as next week in New York.
Speaker 7: Charlie Pellett Bloomberg Radio.
Speaker 2: All right, Charlie, thanks to the Broader Economy Now. The
Speaker 2: ism US Services Index rose to a six month high yesterday,
Speaker 2: but stocks declined amid speculation the strong data will keep
Speaker 2: rates higher for longer. Bloomberg Macros trateg just Mark Hudmore
Speaker 2: says evidence from yesterday's Major Book suggests the Fed's rate
Speaker 2: hike path remains uncertain.
Speaker 8: I thought the most important dedies was actually the Beige
Speaker 8: Book which says backward looking, there's been some good stuff
Speaker 8: from the tourism and leisure sector, but the rest of
Speaker 8: the report was presenting warning signs about the consumer. I
Speaker 8: still believe that US softness is coming in the fourth quarter,
Speaker 8: and I think we're going to have a recession still
Speaker 8: starting around the end of the fourth quarter. Maybe a
Speaker 8: dirty next year, but I still go for the end
Speaker 8: of this year.
Speaker 2: And it's time now for a look at some of
Speaker 2: the other stories making news around the world. For that,
Speaker 2: we're joined by Bloomberg. See Me, Morris, Save Me, Good morning.
Speaker 9: Good morning, Karen. The Senate is going to start moving
Speaker 9: a package of government funding bills next week, as Congress
Speaker 9: is racing to avoid a shutdown at the end of
Speaker 9: this month. Senate Minority Leader Mitch McConnell says he appreciates
Speaker 9: the support that he's seen from President Biden.
Speaker 7: He is supporting the uffard and I intend to continue
Speaker 7: to support it.
Speaker 6: I hope the majority of my colleagues will field the
Speaker 6: same way.
Speaker 9: Now, the President and congressional leaders are focused on a
Speaker 9: passage of a stop gap funding measure to buy a
Speaker 9: little time while lawmakers iron out a full budget. Time
Speaker 9: is running short though the House is scheduled to meet
Speaker 9: for only eleven days before the government's fiscal year ends
Speaker 9: on September thirtieth. It was the first televised hearing in
Speaker 9: former President Trump's election interference case in Georgia. Fulton County
Speaker 9: Judge Scott McAfee laid out how these hearings involving the
Speaker 9: nineteen co defendants are going to move forward.
Speaker 10: The plan would be to try to resolve as many
Speaker 10: of these issues as we can this week and to
Speaker 10: begin entering scheduling orders for the remaining defendants by either
Speaker 10: the end of this week or the early next week.
Speaker 11: Now.
Speaker 9: Judge McAfee denied a motion for one of Trump's co defendants,
Speaker 9: lawyer Kenneth Cheesebro, to sever his case. He said he
Speaker 9: would later decide on whether lawyer Sidney Powell would severhears.
Speaker 9: Prosecutors expect a joint trial to take four months. Former
Speaker 9: President Trump, meanwhile, says he's willing to take the witness
Speaker 9: stand in his own defense if his criminal cases do
Speaker 9: go to trial. He told a radio interview that he
Speaker 9: would absolutely look forward to testifying, but he also said
Speaker 9: he believes the cases are going.
Speaker 12: To be dismissed.
Speaker 9: The former president has pleaded not guilty in four cases
Speaker 9: against him in New York, Georgia, Florida, and Washington, d C.
Speaker 9: The oppressive heat still impacting millions of Americans, and schools
Speaker 9: this week in New England to scramble to get air
Speaker 9: conditioning in classrooms. In Philadelphia, officials announcing schools that don't
Speaker 9: have air conditioning are going to be dismissed early for
Speaker 9: the rest of this week. Englewood Health EMS medical director
Speaker 9: doctor Barbara Streedman says children are among the most at
Speaker 9: risk in the heat. Children have a different physiology than adults,
Speaker 9: and the very young and the very old don't tolerate
Speaker 9: heat as well, especially when the humidity is higher. More
Speaker 9: than fifty million people have been under heat alerts all
Speaker 9: week in the US, from Minnesota to Texas to Massachusetts.
Speaker 9: Global News twenty four hours a day, powered by more
Speaker 9: than twenty seven hundred journalists and analysts in more than
Speaker 9: one hundred twenty countries. I'm Amy Morris. This is Bloomberg.
Speaker 2: Karen, all right, thank you. Now we get a look
Speaker 2: at sports and they Brian John Stashauer. John, good morning, Karen.
Speaker 12: It's opening night of the NFL. Not surprising. The Kansas
Speaker 12: City Chiefs are in the spotlight of the defending Super
Speaker 12: Bowl champions. They've won seven straight AFC West titles. They've
Speaker 12: played the NFC Championship Game each of the last five years.
Speaker 12: It is surprising for the Detroit Lions to be featured,
Speaker 12: usually an NFL doormat, but they finished last season winning
Speaker 12: eight of their last ten games. Chiefs may not have
Speaker 12: their start tight end Travis Kelsey. He's questionable with a
Speaker 12: knee injury. The forty nine ers have gotten their star
Speaker 12: pass rusher Nick Bosa back in camp. He ended his
Speaker 12: forty four day holdout agreed to a massive contract with
Speaker 12: the Niners five years, one hundred and seventy million. Posta
Speaker 12: becomes the highest paid defensive player in NFL history. At
Speaker 12: the US Open Arena, Sablanki another easy victory. She has
Speaker 12: yet to lose a set. She's advanced of the semifinals.
Speaker 12: She's been in the semis of all four Grand Slam
Speaker 12: this year. Coco Goff has her semifinal match in New
Speaker 12: York today and the men's semis will be played tomorrow.
Speaker 12: Danil Medvedev advanced with a straight set win over fellow
Speaker 12: Russian Andre rub Levin. Last night, Carlos Alcarez, the top
Speaker 12: seed independent champ, also won in straight sets. Baseball Red
Speaker 12: Sox lost again at Tampa Bay, three to one. They've
Speaker 12: lost fifteen of sixteen. At Tropiccanafield, the Nationals rally scored
Speaker 12: nineteen ety to beat the Mets three to two. The
Speaker 12: Orioles fifth straight win was ten to three over the Angels.
Speaker 12: The Giants beaten by the Cubs eight to two. Rare
Speaker 12: win for the Eights five to two over Toronto. John
Speaker 12: stashaware of Bloomberg Sports.
Speaker 13: From coast to coast, from New York to San Francisco,
Speaker 13: Boston to Washington, DC, nationwide on siriusxam, the Bloomberg Business
Speaker 13: app in Bloomberg dot com. This is Bloomberg Daybreak.
Speaker 7: Good morning.
Speaker 1: I'm Nathan Hagar. Apple's business in China is getting a
Speaker 1: lot more complicated. We've reported this week that the Chinese
Speaker 1: government is barring its workers from using their iPhones while
Speaker 1: they're on the job. Now, sources tell Bloomberg News that
Speaker 1: band could be extended to state owned businesses and other
Speaker 1: government controlled enterprises. It's a move that could erode Apple's
Speaker 1: position in its biggest market outside the US and for
Speaker 1: more on this, we're joined by Alex Webb, who covers
Speaker 1: the tech sector for US here on Bloomberg Radio. Alex,
Speaker 1: good morning. Why this push now to crack down on
Speaker 1: iPhones specifically in China. I mean, it wasn't that long
Speaker 1: ago that the CEO of Apple, Tim Cook, was praising
Speaker 1: his company's relationship with Beijing.
Speaker 11: Yeah, and of course you know Apple employs millions of
Speaker 11: people both directly and indirectly, well Indre Lismos through Fox
Speaker 11: Gone another contract manufacturers in that part of the world,
Speaker 11: So there is a real kind of symbiotic relationship between
Speaker 11: the country and the company. But it sort of looks
Speaker 11: like we don't entirely know the rationale for this. It
Speaker 11: is based on sources reporting. It looks like there could
Speaker 11: be two reasons for it versus the sort of tit
Speaker 11: for tap. We've seen obviously a crackdown on the supply
Speaker 11: of some important components into the Chinese market. We've also
Speaker 11: seen the US ban the use of TikTok in government agencies.
Speaker 11: This is on a state level at the moment, but
Speaker 11: it's been the case in many states where TikTok is
Speaker 11: not allowed to operate on government networks. But at the
Speaker 11: same time you also want to well, maybe they can
Speaker 11: justify it through security reasons that actually in state controlled
Speaker 11: or state agencies, we have started to see a pushback
Speaker 11: on the role of for instance, consultants, and do they
Speaker 11: have an outsized role because of their proximity to foreign groupings.
Speaker 11: There are many reasons why this might be the case.
Speaker 11: That doesn't necessarily mean that it's significant for Apple itself.
Speaker 1: And it is interesting to think about it potentially as
Speaker 1: a national security rationale for China when we've heard US
Speaker 1: government officials use that same rationale to try to limit
Speaker 1: China's access to cutting edge technology, how is China doing
Speaker 1: when it comes to its own development of some of
Speaker 1: that higher end technology despite US sanctions.
Speaker 11: So we did see some really interesting news in the
Speaker 11: past week or so that Huawei, which is the biggest
Speaker 11: Chinese hardware maker technology hardware maker, has released a new
Speaker 11: phone called the Mate sixty Pro, which includes a chip
Speaker 11: that can operate very close to the cutting edge. It's
Speaker 11: built on the advanced seven nanometer, an advanced nanometer processor, which,
Speaker 11: it seems, according to Bloomberg tear Down, has been manufactured
Speaker 11: by China's domestic chip making giant Semiconductor Manufacturing International Corp.
Speaker 11: Which is their equivalent of TSMC, is not quite as big,
Speaker 11: but that's their effort to really on shore and more
Speaker 11: of that. CORTEC themselves and many people didn't think that
Speaker 11: China have these capabilities. The fact that it seems they
Speaker 11: do is a turn up for the books. Now it's
Speaker 11: a caveat to this. We don't know where they're able
Speaker 11: to do it at scale, where they can do it
Speaker 11: with the sort of it's getting to make the economics
Speaker 11: work in the same way that TSMC can, but it
Speaker 11: shows they're a bit closer to the cutting edge than
Speaker 11: many had anticipated.
Speaker 1: Well, if China does continue to get closer to the
Speaker 1: cutting edge and keep up this crackdown on Apple devices,
Speaker 1: what could it mean for Apple's position in the Chinese market.
Speaker 11: Well, I mean, it clearly doesn't help, but you just
Speaker 11: put it in a bit of context. Right, So Apple
Speaker 11: had has trailing twelve month revenue in the order of
Speaker 11: seventy three billion dollars in Greater China, which also includes Taiwan.
Speaker 11: But when we've looked at what has happened with say
Speaker 11: TikTok in the US and the crackdown and using that
Speaker 11: in government agencies doesn't really seem to have had any
Speaker 11: meaningful impact on TikTok's trajectories. So yes, these government controlled companies,
Speaker 11: the likes of Petro China, they do employ millions of people.
Speaker 11: Let's wait and see when we get to earn his
Speaker 11: schools to see if that actually has any meaningful impact.
Speaker 11: If you judge it by the TikTok experience, the implication
Speaker 11: would be it may not be significant.
Speaker 1: Our last minute, we're waiting and seeing for Apple's next
Speaker 1: product launch as well. I think it's coming up next week?
Speaker 13: Right?
Speaker 1: Does that put more pressure on Apple to deliver when
Speaker 1: it comes to what's coming next?
Speaker 11: Look, there's always pressure on Apple in terms of what
Speaker 11: comes next. The thing they have managed to do we
Speaker 11: are going to see you, So they are going to
Speaker 11: We're going to see new iPhones lightly next week and
Speaker 11: probably in new Apple Watch as well. But the big
Speaker 11: story of Apple is how they have managed to diversify
Speaker 11: away from the hardware into services, which not only is
Speaker 11: higher margin, but it also ties people more tightly to
Speaker 11: their hardware, and that is why people still keep buying
Speaker 11: these things even without major upgrades.
Speaker 1: This is Bloomberg Daybreak today. Your morning brief on the
Speaker 1: story's making news from Wall Street to Washington and beyond.
Speaker 2: Look for us on your podcast feed at six am
Speaker 2: Eastern each morning, on Apple, Spotify, and anywhere else you
Speaker 2: get your podcasts.
Speaker 1: You can also listen live each morning, starting at five
Speaker 1: am Wall Street time, on Bloomberg eleven three to zero
Speaker 1: in New York, Bloomberg ninety nine to one in Washington,
Speaker 1: Bloomberg one oh sixty one in Boston, and Bloomberg ninety
Speaker 1: sixty in San Francisco.
Speaker 2: Our flagship New York station is also available on your
Speaker 2: Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus.
Speaker 1: Listen coast to coast on the Bloomberg Business app, serious
Speaker 1: XM Channel one nineteen, the iHeartRadio app, and on Bloomberg
Speaker 1: dot Com. I'm Nathan Hager.
Speaker 2: And I'm Karen Moscow. Join us again tomorrow morning for
Speaker 2: all the news you need to start your day right
Speaker 2: here on Bloomberg Daybreak