WEBVTT - Regional Bank Selloff Subsides; Apple Rises on Earnings

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<v Speaker 1>From the Bloomberg Interactive Burger Studios. This is Bloomberg day

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<v Speaker 1>Break for Friday, May fifth. Coming up today, Too Big.

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<v Speaker 2>Nut to Pay. The FDIC plants to hit big banks

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<v Speaker 2>with feasts replenish its insurance fund.

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<v Speaker 1>The sell off in regional subsides as pack West and

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<v Speaker 1>Western Alliance rise.

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<v Speaker 2>Apple shares rally following solid earnings and.

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<v Speaker 1>A busy economic week. Concludes with the April Johns Report, The.

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<v Speaker 3>Depth of a homeless New York subway riter sparks calls

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<v Speaker 3>for Chargers plus Promboys leaders are convicted of seditious conspiracy.

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<v Speaker 3>For January sixth, I'm John Tucker, Mora Hint.

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<v Speaker 4>I'm John Stashdaron Sports. The Warriors blew out the Lakers.

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<v Speaker 4>The Mets shut out in Detroit. The Yankees begin a

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<v Speaker 4>big series at Tampa Bay tonight.

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<v Speaker 5>That's all straight Ahead on Bloomberg day Break, The business

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<v Speaker 5>news you need to starn your day in just one

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<v Speaker 5>fifteen minute podcast each morning on Apple Spotify. The Bloomberg

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<v Speaker 5>Business Appen everywhere you get your podcasts.

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<v Speaker 6>Good morning, I'm Nathan Hager.

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<v Speaker 1>And I'm Karen Moscow. Here are the stories we're following today.

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<v Speaker 2>The turmoil that has engulfed the banking sector, and now

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<v Speaker 2>the pain is hitting bigger banks. US regulators plan to

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<v Speaker 2>make the biggest lenders foot most of the bill for

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<v Speaker 2>replenishing the government's Deposit Insurance Fund. We get the story

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<v Speaker 2>from Bloomberg Stug Prisner.

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<v Speaker 7>We're told lenders with less than ten billion dollars in

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<v Speaker 7>assets wouldn't have to pay. FDIC data show more than

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<v Speaker 7>four thousand institutions were below that threshold at the end

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<v Speaker 7>of last year, and depending on the size of their

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<v Speaker 7>deposit portfolio, some banks with as much as fifty billion

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<v Speaker 7>dollars in assets could also avoid payments. Much of the

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<v Speaker 7>tab for refilling the fund will be paid by the

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<v Speaker 7>biggest banks. We are told the FDIC is planning to

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<v Speaker 7>release its proposal as soon as next week. The Deposit

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<v Speaker 7>Insurance Fund was partly depleted by the failures of Silicon

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<v Speaker 7>Valley Bank and Signature Bank in New York. I'm Doug Krisner,

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<v Speaker 7>Bloomberg Daybreak.

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<v Speaker 1>All right, Doug, thanks, So that move comes as regionals

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<v Speaker 1>continue to take a pounding on Wall. Straight Pack West

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<v Speaker 1>plunge another fifty one percent yesterday. It has now lost

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<v Speaker 1>almost three quarters of its value in just over a week,

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<v Speaker 1>Western Alliance tumbled thirty eight percent, and we get more

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<v Speaker 1>from Bloomberg's Valery title.

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<v Speaker 8>The lenders who are struggling now Pack West Western Alliance,

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<v Speaker 8>they don't have an uninsured deposit problem like SVB. SVB

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<v Speaker 8>had some ninety percent of uninsured deposits. It's the flip

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<v Speaker 8>side when it comes to pack West and Western Alliance.

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<v Speaker 8>Nearly seventy five percent of their deposits are insured, so

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<v Speaker 8>it's not necessarily about this uninsured deposit risk anymore. It

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<v Speaker 8>could be about just a broader profitability viability of these

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<v Speaker 8>regional banks that's coming into question.

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<v Speaker 1>And Bloomberg's Valerie title says both those stocks are now

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<v Speaker 1>recouping some of their losses. Checking shares of pack West

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<v Speaker 1>this morning, they're up almost fourteen percent, but Western Alliance

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<v Speaker 1>is up more than ten percent well.

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<v Speaker 2>Meantime, Karen, a top banking boss, is going to be

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<v Speaker 2>coming to China. According to Reuter's JP Morgan, Chain CEO

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<v Speaker 2>Jamie Diamond is going to visit the mainland later this month.

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<v Speaker 2>Diamond will attend conferences in Shanghai and hold internal and

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<v Speaker 2>external meetings. Writer says it'll be Diamond's first visit to

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<v Speaker 2>China in four years well.

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<v Speaker 1>Turning into corporate news now Nathan shares of Apple are

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<v Speaker 1>up to percent. The world's most valuable company had results

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<v Speaker 1>that beat estimates. iPhone sales actually fell two and a

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<v Speaker 1>half percent, but Apple had warned investors to expect a

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<v Speaker 1>drop of roughly twice as much. CEO Tim Cook says

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<v Speaker 1>China is a key market for the company.

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<v Speaker 9>We were pleased with how with how we did and

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<v Speaker 9>with the acceleration that we saw with the reopening, so

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<v Speaker 9>we feel good about it. It also China has a

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<v Speaker 9>lot of very good metrics.

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<v Speaker 1>Apple CEO Tim Cook announced plans for ninety billion dollars

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<v Speaker 1>in stock repurchases, the same level as last year. The

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<v Speaker 1>company also raised it's quarterly dividend four percent.

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<v Speaker 2>Meantime, Karen, we're learning this morning that a commodities trader

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<v Speaker 2>at mcquarie is taking home more money than Jamie Diamond

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<v Speaker 2>and other CEOs. Nick O'Cain, whose commodities trading business underpinned

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<v Speaker 2>Macquarie Group's record annual profit, is getting a fifty nine

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<v Speaker 2>percent raise to more than thirty eight million dollars. That's

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<v Speaker 2>more than his own CEO and Diamond, who earned more

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<v Speaker 2>than thirty four million. City Group CEO Jane Fraser made

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<v Speaker 2>twenty four and a half million dollars last year. That's

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<v Speaker 2>fourteen million less than Nick Ocain.

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<v Speaker 1>Well, It's a busy week on the economic front, and

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<v Speaker 1>it culminates today Nathan with the jobs report for April.

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<v Speaker 1>Economists say pay roll growth probably slowed as signs grow

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<v Speaker 1>that America's economy may slip into recession. We get more

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<v Speaker 1>from Bloomberg's Michael McKee.

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<v Speaker 10>A FED looking for a labor market loosening may be

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<v Speaker 10>disappointed once again. The consensus of economists surveyed by Bloomberg

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<v Speaker 10>is about double the level needed to absorb new entrants

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<v Speaker 10>into the labor force. Unemployment is only forecasts to tick

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<v Speaker 10>up a tenth higher, remaining near a historic low. The

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<v Speaker 10>rate of increase in average hourly earnings is forecast to flatten,

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<v Speaker 10>but remain higher than the level consistent with two percent inflation.

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<v Speaker 10>Policymakers are trying to slow demand in the economy by

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<v Speaker 10>slowing the labor market. The best FED officials can hope

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<v Speaker 10>for is they see some progress this month toward their goal.

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<v Speaker 10>Michael McKee, Bloomberg Daybreak.

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<v Speaker 2>All right, Mike, thanks recession warnings tied to the debt

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<v Speaker 2>ceiling are getting louder. In Washington. Senate Democrats are warning

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<v Speaker 2>that House Republicans could wreck the economy, either with sharp

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<v Speaker 2>spending cuts or a government default. This all comes ahead

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<v Speaker 2>of next week's key meeting between President Biden and congressional leaders.

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<v Speaker 2>Republican Congressman Brian's Style says his side is ready to talk.

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<v Speaker 11>Republicans are at the table. We're the only group that

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<v Speaker 11>has a bill that's passed that raises the debt ceiling.

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<v Speaker 11>The Democrats and the Senate have not passed any form

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<v Speaker 11>of a debt ceiling increase. And the reason I think

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<v Speaker 11>is because they don't have the votes to pass the

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<v Speaker 11>clean debt ceiling that they all claim they want.

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<v Speaker 2>A Republican Brian's Style of Wisconsin spoke with Kaylee Lines

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<v Speaker 2>on Bloomberg Sound on. Catch the show weekdays at one

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<v Speaker 2>pm Eastern on Bloomberg Radio, or listen on demand wherever

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<v Speaker 2>you get your podcasts.

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<v Speaker 1>Well, let's take a look now at some stocks on

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<v Speaker 1>the move this morning. Nathan shares of Lift are down

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<v Speaker 1>more than sixteen percent. The number two ride heiling company

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<v Speaker 1>is forecasting revenue that's lower than estimates that Lift also

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<v Speaker 1>reported fewer active riders on the platform that expected on.

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<v Speaker 2>The flip side Care, and shares of Carvana are surging

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<v Speaker 2>more than thirty five percent. The debt ridden auto retailer

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<v Speaker 2>says it expects to report a profit this quarter following

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<v Speaker 2>his string of losses.

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<v Speaker 1>And shares of Kon Enterprises up almost ten percent in

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<v Speaker 1>early trading, car Lakhon issued a dividend to investors after

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<v Speaker 1>coming under attack from short seller Hindenburg Research. The stock

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<v Speaker 1>has plunged more than forty percent since Hindenberg's report.

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<v Speaker 2>It's time now to take a look at some of

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<v Speaker 2>the other stories making news in New York and around

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<v Speaker 2>the world. For that, we're joined by Bloomberg's John Tucker.

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<v Speaker 2>Good morning John, Good morning Nathan.

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<v Speaker 3>There are more calls for an arrest in the depth

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<v Speaker 3>of the homeless man on the New York City subway.

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<v Speaker 3>Witnesses say thirty year old Jordan Neelios threatening others when

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<v Speaker 3>a marine veteran put them at a choke hold for

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<v Speaker 3>fifteen minutes. The veteran was questioned and released, but Neely's

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<v Speaker 3>day has now been ruled to homicide. Neely family attorney

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<v Speaker 3>Lennon Edwards.

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<v Speaker 12>The situation that was presented, was not one where he

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<v Speaker 12>was an inflicting physical harm on anyone. To the contrary,

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<v Speaker 12>he had physical harm inflicted on him.

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<v Speaker 3>Meanwhile, Governor Cathy Hoco called the chokehold in extreme response.

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<v Speaker 3>Neely is sent to have had a documented mental health history.

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<v Speaker 3>At more than forty arrests, four of five members of

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<v Speaker 3>the far right extremist group the Proud Boys have been

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<v Speaker 3>found guilty of numerous felonies for their part in the

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<v Speaker 3>January sixth capital attack. Federal prosecutors say the leaders of

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<v Speaker 3>the mob were responsible for assembling a fighting force that

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<v Speaker 3>considered themselves Donald Trump's army. The jury convicted four of

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<v Speaker 3>the five, including former one time leader Enrique Terrio, of

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<v Speaker 3>seditious conspiracy, plotting to overthrow the government in several other charges.

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<v Speaker 3>Carmen Hernandez, the defense attorney for Zachary Riels, as she

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<v Speaker 3>and her client planned to request a retrial and a

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<v Speaker 3>separate venue.

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<v Speaker 5>So we're very disappointed.

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<v Speaker 7>I believe he's the jury has spoken.

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<v Speaker 3>Well, being bolen. Attorney General Merrick Garland says the Justice

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<v Speaker 3>Department's work isn't finished.

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<v Speaker 5>Today's verdict makes clear that the Justice Department will do

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<v Speaker 5>everything in its power to defend the American people and

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<v Speaker 5>American democracy. A. G.

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<v Speaker 3>Garland says the department has secured more than six hundred

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<v Speaker 3>convictions for a wide range of criminal conduct. On January sixth,

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<v Speaker 3>it's a victory for a British singer, Ed Sheeran. A

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<v Speaker 3>jury in New York included Shearon didn't steal key components

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<v Speaker 3>of Martin Gay's classic nineteen seventies two Let's Get It

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<v Speaker 3>On when he created his hit song thinking Out Loud

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<v Speaker 3>and service alerts from New York City subway commuter trains

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<v Speaker 3>and bosses back on Twitter. A week after MTA officials

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<v Speaker 3>baulked at paying to provide the information in at about face,

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<v Speaker 3>Twitter said it's restored free access to a programming interface

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<v Speaker 3>for verified government and publicly owned services so they can

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<v Speaker 3>send the alerts. Global News twenty four hours a day,

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<v Speaker 3>powered by more than twenty seven hooded journalists and analysts

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<v Speaker 3>in more than one hundred twenty countries. I'm John Tucker.

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<v Speaker 3>This is Bloomberg, Nathan.

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<v Speaker 2>Thank you, John. Time now for our Bloomberg Sports update.

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<v Speaker 2>For that, we bring in John stash Hour.

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<v Speaker 4>All right, Nathan, this series between the Lakers and Warriors

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<v Speaker 4>builders Lebron James against Steph Curry, but they're not the

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<v Speaker 4>only stars on the floor. Anthony Davis scored thirty points

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<v Speaker 4>in LA's Game one victory. Clay Thompson scored thirty for

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<v Speaker 4>the Warriors in Game two. He made eight of eleven

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<v Speaker 4>three pointers. The Warriors won easily, won twenty seven to

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<v Speaker 4>one hundred two game threes tonight. The Knicks have their

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<v Speaker 4>Game three in Miami tomorrow afternoon. The Heat said to

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<v Speaker 4>be optimistic that Jimmy Butler will play. Sat out Game

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<v Speaker 4>two with an ankle injury. Milwaukee won the NBA Championship

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<v Speaker 4>just two years ago, had the league's best regular season,

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<v Speaker 4>but that first round loss to Miami has cost Mike

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<v Speaker 4>Budenholzer his job, fired after five years as coach of

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<v Speaker 4>the Buffs. The Devils played Game two at Carolina tonight.

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<v Speaker 4>Wins last night for Dallas and Florida. The eighth seeded

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<v Speaker 4>Panthers are up two games to none on Toronto. The

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<v Speaker 4>Detroit Tigers were just ten and thirteen when they welcomed

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<v Speaker 4>in the Mets, who they then swept. Mets had only

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<v Speaker 4>three hits at a two to nothing lost. Justin Verlander

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<v Speaker 4>took the loss at his Mets debut. Until yesterday, Verlander

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<v Speaker 4>had been an observer of his new team.

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<v Speaker 13>I feel like it hasn't quite matched up yet. Like

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<v Speaker 13>we've done everything well at certain points in time, but

0:10:21.679 --> 0:10:23.319
<v Speaker 13>we haven't really gone on that run where we start

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<v Speaker 13>pitching really well night in and night out and start

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<v Speaker 13>hitting really.

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<v Speaker 5>Well tonight in a night out.

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<v Speaker 14>It's you know.

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<v Speaker 13>And that's what happens to mean. Baseball's hundred sixt two games.

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<v Speaker 13>It's it's still early.

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<v Speaker 4>It's a five hundred. They're home tonight for Colorado Yankees

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<v Speaker 4>at Tampa Bay, with the raised just one again to

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<v Speaker 4>raise their record to twenty six and six, tied for

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<v Speaker 4>the fourth best thirty two games start in baseball history.

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<v Speaker 4>The Giants have a new four year deal with their

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<v Speaker 4>Pro Bowl defensive lineman Dexter Lawrence John Stashiewack.

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<v Speaker 2>Bloomberg Sports.

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<v Speaker 5>Live from coast to coast, from New York to San Francisco,

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<v Speaker 5>Boston to Washington, d C. Nationwide on Sirius Exam, Bloomberg

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<v Speaker 5>Business Appened, Bloomberg dot Com. This is Bloomberg Daybreak.

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<v Speaker 2>Good morning. I'm Nathan Hager, and we are wrapping up

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<v Speaker 2>a rocky earnings quarter for Big tech with some solid

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<v Speaker 2>results from Apple. The Iphonemaker came out with revenue that

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<v Speaker 2>beat Wall Street estimates. Even though sales fell two and

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<v Speaker 2>a half percent. That wasn't nearly as bad as Tim

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<v Speaker 2>Cook and company were warning investors to expect. So let's

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<v Speaker 2>get some post earnings analysis now from someone who has

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<v Speaker 2>covered Apple for a long time. Gene Monster is back

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<v Speaker 2>with us this morning, managing partner at Deepwater Asset Management.

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<v Speaker 2>Gene It's always great to speak with you about big tech,

0:11:36.760 --> 0:11:39.800
<v Speaker 2>particularly after we get the kind of results that are

0:11:40.080 --> 0:11:44.120
<v Speaker 2>giving investors a little bit of assurance this morning. What

0:11:44.200 --> 0:11:47.240
<v Speaker 2>are your thoughts after we got these results from Apple?

0:11:47.320 --> 0:11:49.839
<v Speaker 2>Is it a matter of setting expectations right?

0:11:51.440 --> 0:11:53.920
<v Speaker 14>Well, that's part of it, I think from the highest level.

0:11:53.960 --> 0:11:54.440
<v Speaker 14>You said it.

0:11:54.520 --> 0:11:57.920
<v Speaker 15>Well, they beat revenue by two percent, they beat EPs

0:11:57.960 --> 0:12:01.520
<v Speaker 15>by seven percent. I would put that as a classic

0:12:01.679 --> 0:12:04.880
<v Speaker 15>Apple type of quarter. The piece that was not classic

0:12:05.000 --> 0:12:08.240
<v Speaker 15>is they guided revenue for June down.

0:12:08.600 --> 0:12:10.640
<v Speaker 14>That's something that they typically don't do.

0:12:10.760 --> 0:12:13.880
<v Speaker 15>Let me just quick frame in that they're expecting revenue

0:12:13.920 --> 0:12:16.440
<v Speaker 15>to be down two percent for the June quarter versus

0:12:16.480 --> 0:12:19.720
<v Speaker 15>the street that was up two percent. So that's a

0:12:19.840 --> 0:12:23.080
<v Speaker 15>four x swing there. They did say, FX had a

0:12:23.120 --> 0:12:26.520
<v Speaker 15>four x percent impact. Some people back that out, some

0:12:26.559 --> 0:12:29.360
<v Speaker 15>people don't. But when you put it all together here,

0:12:29.400 --> 0:12:32.120
<v Speaker 15>there's something bigger going on when it comes to Apple.

0:12:32.760 --> 0:12:36.240
<v Speaker 15>And last quarter they missed the quarter. That's something rare.

0:12:36.280 --> 0:12:39.960
<v Speaker 15>It's happened three times in the past decade. This quarter

0:12:40.080 --> 0:12:43.040
<v Speaker 15>they guided down. So you've had essentially two quarters in

0:12:43.080 --> 0:12:47.160
<v Speaker 15>a row where there's been something that, under normal circumstances

0:12:47.360 --> 0:12:50.440
<v Speaker 15>would have a negative impact, the stock would be down

0:12:50.520 --> 0:12:53.080
<v Speaker 15>five percent something like that. We're not seeing that this morning.

0:12:53.080 --> 0:12:55.800
<v Speaker 15>We're seeing it up a couple percent. So, Nathan, what

0:12:56.120 --> 0:12:58.560
<v Speaker 15>I've been asking is what is going on here in

0:12:58.640 --> 0:13:00.559
<v Speaker 15>terms of what are we learning from? And I think

0:13:00.600 --> 0:13:03.640
<v Speaker 15>that the key takeaway here is that the active base

0:13:03.880 --> 0:13:09.080
<v Speaker 15>is growing, which means that their device flywheel, their ecosystem,

0:13:09.400 --> 0:13:13.320
<v Speaker 15>their franchise, call it what you may, that is working.

0:13:13.360 --> 0:13:15.360
<v Speaker 15>And let me just quick framing that because I think

0:13:15.360 --> 0:13:18.319
<v Speaker 15>this is an important factor that is going to become

0:13:18.400 --> 0:13:21.679
<v Speaker 15>even more important for Apple investors in the years to come.

0:13:22.280 --> 0:13:24.760
<v Speaker 14>And so they didn't break out the exact number.

0:13:24.800 --> 0:13:28.120
<v Speaker 15>They just said that their two billion active devices were

0:13:28.320 --> 0:13:32.400
<v Speaker 15>up year over year. Their products revenues, this is the

0:13:32.480 --> 0:13:35.920
<v Speaker 15>revenue from their harder. It was down five percent in March.

0:13:35.960 --> 0:13:39.240
<v Speaker 15>So they grew their overall active devices while products are down.

0:13:39.559 --> 0:13:42.680
<v Speaker 15>And the way they did that is that essentially used

0:13:42.760 --> 0:13:47.040
<v Speaker 15>iPhones to get refurbished and resold to people who previously

0:13:47.080 --> 0:13:47.880
<v Speaker 15>never owned one.

0:13:48.480 --> 0:13:51.680
<v Speaker 14>So that is a sign of a healthy base.

0:13:51.840 --> 0:13:54.559
<v Speaker 15>It's hard to grow a number at two billion, just

0:13:54.600 --> 0:13:57.480
<v Speaker 15>to ask Meta, it's a very different that's their DAU number,

0:13:57.520 --> 0:14:00.439
<v Speaker 15>their daily active user number. So to put it in

0:14:00.520 --> 0:14:04.120
<v Speaker 15>a nutshell, Nathan, is that these results were okay. The

0:14:04.160 --> 0:14:08.880
<v Speaker 15>guidance was muted, but their device, the dependency that customers

0:14:08.920 --> 0:14:12.480
<v Speaker 15>are having is increasing, and that is welcome to by investors.

0:14:12.480 --> 0:14:14.480
<v Speaker 15>And that is a big shift that's going on in

0:14:14.559 --> 0:14:18.240
<v Speaker 15>terms of how investors are viewing the Apple investment case.

0:14:18.320 --> 0:14:23.160
<v Speaker 15>This is becoming a consumer staple company. Shockingly, consumer staples

0:14:23.200 --> 0:14:26.880
<v Speaker 15>get huge multiples. They averaged twenty six times Apple's training

0:14:26.880 --> 0:14:29.320
<v Speaker 15>at twenty four times and growing a lot faster. So

0:14:29.920 --> 0:14:33.080
<v Speaker 15>big picture is the devices. Was the takeaway from the quarter.

0:14:33.360 --> 0:14:35.320
<v Speaker 2>Yeah, that was a really interesting point in the note

0:14:35.320 --> 0:14:39.760
<v Speaker 2>you put out yesterday about Apple's earnings. The transition to

0:14:39.880 --> 0:14:43.000
<v Speaker 2>a consumer staples company. I mean, we've talked in the

0:14:43.040 --> 0:14:47.680
<v Speaker 2>past about the brand loyalty that Apple customers have for

0:14:47.720 --> 0:14:51.760
<v Speaker 2>this company, Is it any more unusual than some other

0:14:51.840 --> 0:14:54.920
<v Speaker 2>brands might have when it comes to the loyalty of

0:14:54.960 --> 0:14:55.920
<v Speaker 2>their customer base.

0:14:57.640 --> 0:15:01.640
<v Speaker 15>Well, there are numbers from intern of like customer retentions

0:15:01.720 --> 0:15:06.360
<v Speaker 15>remarkable when you look at an iPhone ninety percent plus

0:15:06.440 --> 0:15:10.160
<v Speaker 15>customer retention. These are expensive devices, and so I don't

0:15:10.160 --> 0:15:16.040
<v Speaker 15>have comparables about what other that's probably on par with

0:15:16.120 --> 0:15:19.040
<v Speaker 15>Coca Cola's retention. Coca Cola trades at a hire multiple

0:15:19.080 --> 0:15:22.880
<v Speaker 15>than Apple. Coca Cola girls at three percent, Apple girls

0:15:22.920 --> 0:15:26.000
<v Speaker 15>at seven percent. So I think that the answer is

0:15:26.040 --> 0:15:30.080
<v Speaker 15>that this has Apple has incredible retention rates.

0:15:30.080 --> 0:15:30.800
<v Speaker 14>We all know that.

0:15:31.200 --> 0:15:33.880
<v Speaker 15>I think the piece that is changing here is that

0:15:34.480 --> 0:15:39.200
<v Speaker 15>we're seeing markets that have never stretched to own these

0:15:39.240 --> 0:15:43.760
<v Speaker 15>devices having similar retention rates. For example, Southeast Asia it

0:15:43.800 --> 0:15:45.160
<v Speaker 15>was a bright spot.

0:15:44.920 --> 0:15:45.320
<v Speaker 14>In the quarter.

0:15:45.400 --> 0:15:51.640
<v Speaker 15>They talked about India, Vietnam, South Korea, all these areas

0:15:51.640 --> 0:15:55.000
<v Speaker 15>that historically they haven't had that brand loyalty, They're starting

0:15:55.040 --> 0:15:56.640
<v Speaker 15>to emerge and those are large markets.

0:15:57.120 --> 0:15:59.720
<v Speaker 2>So when it comes to holding on to that brand loyalty,

0:15:59.760 --> 0:16:02.560
<v Speaker 2>g is that going to mean that Apple is going

0:16:02.600 --> 0:16:04.960
<v Speaker 2>to put or need to put even more of a

0:16:05.000 --> 0:16:10.040
<v Speaker 2>focus on getting newer, better customer devices out there, or

0:16:10.040 --> 0:16:13.520
<v Speaker 2>can it hang its hat on the services side of

0:16:13.600 --> 0:16:17.400
<v Speaker 2>what it's been putting out there, Apple TV plus, Apple Watch,

0:16:17.520 --> 0:16:19.920
<v Speaker 2>Apple Music, that sort of thing.

0:16:20.640 --> 0:16:24.080
<v Speaker 15>Yeah, now you know there's savings account, this high yield

0:16:24.120 --> 0:16:28.200
<v Speaker 15>savings account, you know these other productsity going onto. The

0:16:28.240 --> 0:16:31.680
<v Speaker 15>answer is that they need to stay ahead of the curb. Obviously,

0:16:31.760 --> 0:16:35.320
<v Speaker 15>they got to keep innovating from a peer like feature

0:16:35.440 --> 0:16:38.760
<v Speaker 15>performance based is the hardware, how it specs out relative

0:16:38.800 --> 0:16:41.680
<v Speaker 15>to like a Samsung device. They don't need to be

0:16:41.720 --> 0:16:44.480
<v Speaker 15>the best, and that's been the case for many years,

0:16:44.520 --> 0:16:47.040
<v Speaker 15>five plus years. Is they don't have to be cutting

0:16:47.120 --> 0:16:48.920
<v Speaker 15>edge type of sizzling speed.

0:16:51.320 --> 0:16:54.400
<v Speaker 6>This is Bloomberg Daybreak Today, your morning brief on the

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