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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning, I'm Nathan Hager and I'm Karen Moscow. Here

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Speaker 2: are the stories we're following today.

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Speaker 3: Karen, Yeah, futures are following this morning after President Donald

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Speaker 3: Trump unleashed his final round of tariff announcements on countries

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Speaker 3: around the world hours before his August first deadline. The

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Speaker 3: President slapped thirty five percent tariffs on Canadian goods not

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Speaker 3: covered under the US Mexico Canada trade agreement. Switzerland's products

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Speaker 3: were hit with a thirty nine percent rate, and Taiwan's

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Speaker 3: exports are facing a twenty percent duty, though that country

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Speaker 3: says it expects to keep negotiating. We get more from

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Speaker 3: Bloomberg News Global Trade editor Brendan Murray.

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Speaker 4: The bottom line here is that the average US tariff

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Speaker 4: rate is going from about two and a half percent

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Speaker 4: before Trump was sworn in in January to around fifteen

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Speaker 4: percent according to Bloomberg Economics. And that's, in any economist book,

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Speaker 4: a difficult thing for an economy to absorb. So I

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Speaker 4: think we'll see some more talks going on in the weeks.

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Speaker 4: In the days and weeks ahead.

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Speaker 3: Bloomberg's Brenton Murray says most countries are facing a baseline

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Speaker 3: ten percent rate, while roughly forty nations are jumping to

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Speaker 3: fifteen percent. The new tariffs won't take effect until August seventh,

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Speaker 3: to give US Customs and Border Protection time to prepare.

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Speaker 3: Former US trade negotiator Steven Olsen says that could add

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Speaker 3: to market uncertainty.

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Speaker 5: We do have a week to go, and this is

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Speaker 5: a man who thrives on chaos and unpredictability and sometimes

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Speaker 5: seems to be running his trade policy like a reality

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Speaker 5: TV show. So until these tariffs actually go into effect

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Speaker 5: on August seventh, let's sit back and see what happens.

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Speaker 3: Former trade negotiator Steven Olsen says President Trump has embraced

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Speaker 3: tariffs for decades, so these moves should not come as

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Speaker 3: a surprise.

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Speaker 6: Well, Nathan.

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Speaker 2: President Trump is also escalating his campaign to pressure pharmaceutical

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Speaker 2: companies to lower drug prices, and Bloomberg's John Tucker joins

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Speaker 2: us with the very latest John, good morning.

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Speaker 7: And good morning Karen. In letters send to Eli, Lilly, Novo, Nordis, Pfizer,

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Speaker 7: and others, Trump insisted the companies immediately lower what they

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Speaker 7: charge Medicaid for existing drugs. He also asked them to

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Speaker 7: guarantee that future medicines be launched and remain at prices

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Speaker 7: on par with what they cost overseas. He gave the

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Speaker 7: world's seventeen largest drug makers sixty days to comply. If

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Speaker 7: they don't, he writes, his administration will quote deploy every

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Speaker 7: tool in our arsenal to protect American families. The pharmaceutical

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Speaker 7: industry has long protested the idea of globally linked drug

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Speaker 7: prices as a threat to years of US dominance in

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Speaker 7: biomedical research. They've urged the administration instead to turn its

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Speaker 7: attention to the middle men in the supply chain. Right now,

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Speaker 7: in European trading, shares of Novo nordis down another four

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Speaker 7: point eight percent. That company loses its spot among Europe's

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Speaker 7: ten most valuable companies. Peiser pre market is down six

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Speaker 7: tenths of a percentw Yor Income John Tucker Bloomberg.

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Speaker 3: Okay, John, thank you. Earnings are also very much in

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Speaker 3: focus this morning. We're watching shares of Amazon. They are

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Speaker 3: down more than eight percent pre market. The online retail

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Speaker 3: giants projecting weaker than expected operating income and is trailing

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Speaker 3: the sales growth of its cloud rivals. That has investors

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Speaker 3: questioning whether Amazon's huge investments and artificial intelligence are paying off.

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Speaker 3: Anarag Rana is a senior tech analyst at Bloomberg Intelligence.

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Speaker 8: Do you see you know, they met expectations on Aw's

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Speaker 8: growth of seventeen percent in constant currency. But you know,

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Speaker 8: this is where we are saying that this is probably

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Speaker 8: not good enough because Microsoft beat by a big number.

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Speaker 8: Google beat by a big number, and the big question

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Speaker 8: is going to be, you know, why didn't Amazon beat

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Speaker 8: by a big number?

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Speaker 3: Bloomberg Intelligence is on arag Rana says Amazon spenter record

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Speaker 3: thirty one point four billion dollars on capital expenditures in

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Speaker 3: the quarter. That was up about ninety percent from the

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Speaker 3: same period a year earlier.

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Speaker 2: On the flip side, Nathan shares of Apple are at

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Speaker 2: more than one and a half percent. The iPhone maker

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Speaker 2: posted as fast as corely revenue growth in more than

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Speaker 2: three years. Strong iPhone sales and a rebound in Shana

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Speaker 2: helped beat estimates despite a projected tariff hit.

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Speaker 6: Mark German covers Apple for Bloomberg.

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Speaker 9: There are people who still have iPhones that are several

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Speaker 9: years old, four to six even older years of iPhone right,

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Speaker 9: There's people on Android, there's people new to the smartphone market,

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Speaker 9: and clearly the impact of tariffs didn't have a negative.

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Speaker 7: Impact on Apple.

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Speaker 9: It had a positive impact on Apple. That's because a

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Speaker 9: lot of people were anticipating major price hikes to the

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Speaker 9: iPhone and they flooded Apple retail stores.

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Speaker 2: Bloomer's Mark German says Apple predicted that fourth quarter revenue

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Speaker 2: would be up by a percentage in the mid to

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Speaker 2: high single digits. CEO Tim Cook also says the company

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Speaker 2: is helping investment in artificial intelligence.

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Speaker 3: Well, this morning, Karen, the earnings focus turns from big

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Speaker 3: tech to big oil. We'll hear from both ex On

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Speaker 3: Mobile and Chevron. We get a preview from Bloomberg's Tom Busby.

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Speaker 10: Investors at Exon Mobile eager to hear about the company's

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Speaker 10: progress and developing a massive oil field in Guyana, also

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Speaker 10: the latest shale production plans in the Permian Basin. Bloomberg

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Speaker 10: consensus calls for revenue of eighty point three nine billion

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Speaker 10: dollars and adjusted earnings per share of a dollar fifty six.

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Speaker 10: Chevron investors want to hear about the company's long delayed

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Speaker 10: but now completed acquisition of Hess and how that'll impact

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Speaker 10: its share buyback plans. Bloomberg consensus calls for revenue of

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Speaker 10: forty six point seventy five billion on adjusted earnings per

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Speaker 10: share of a dollar seventy one. Tom buzzby Bloomberg.

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Speaker 11: Radio, All right, Tom, Thanks.

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Speaker 2: A busy week on the economic front concludes this morning

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Speaker 2: with the July jobs report. Economists are forecasting a gain

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Speaker 2: of one hundred and four thousand jobs at an unemployment

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Speaker 2: rate of four point two percent. Begin more with Bloomberg's

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Speaker 2: Michael McKee.

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Speaker 12: Job growth will slow and unemployment will have ticked up

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Speaker 12: in July, economists forecasts. But it's not the end of

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Speaker 12: the world or even the economic expansion. Once again, it's tariffs.

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Speaker 12: Companies have been suspending guidance and announcing price increases to

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Speaker 12: offset tariffs, but they have not yet resorted to cutting jobs.

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Speaker 12: It won't matter much to the FAD if unemployment does

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Speaker 12: rise by a tenth or so, but a quick jump

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Speaker 12: to say four and a half percent, would worry policymakers,

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Speaker 12: who may take it as a signal policy is too tight.

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Speaker 12: There will be time to consider the implications no matter

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Speaker 12: what we get. The next FED meeting is not until

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Speaker 12: September seventeenth. Michael McKee, Bloomberg radio.

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Speaker 3: All right, Mike, thanks and speaking of the Fed, President

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Speaker 3: Trump is keeping up his pressure campaign on j. Powell

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Speaker 3: to lower rates, once again, taking to social media to

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Speaker 3: criticize the FED chair. Lyle Brainerd is a former vice

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Speaker 3: chair of the Federal Reserve.

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Speaker 13: What has been surprising to me is to hear the

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Speaker 13: President talk about lowering rates as though it is the

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Speaker 13: Federal Reserves responsibility to lower rates for US Treasury debt management.

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Speaker 13: And that, of course, is exactly how central banks go

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Speaker 13: wrong in emerging markets.

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Speaker 3: Former FED Vice chair Lyle brainer also says she thinks

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Speaker 3: the President's higher tariff rates will hamper economic growth.

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Speaker 2: And finally, Nathan and of an Era, Ray Dalio has

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Speaker 2: sold his last remaining stake in Bridgewater Associates and also

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Speaker 2: left the hedge Funds board. Dalio first announced his succession

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Speaker 2: plan more than a decade ago, but he did not

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Speaker 2: fully hand over the rains until twenty twenty two, when

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Speaker 2: he transferred his voting rights to its board of directors

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Speaker 2: and stepped down as one of its three co chief

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Speaker 2: investment officers. He stayed on the board at the time,

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Speaker 2: and Dalio founded the firm in nineteen seventy five. Time

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Speaker 2: now for a look at some of the other stories

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Speaker 2: making news in New York and around the.

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Speaker 6: World, and for that we're joined by Bloomberg's and Michael Barr. Michael,

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Speaker 6: good Morning, Good morning, Karen.

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Speaker 14: Storms have been lashing the East Coast from Virginia to Connecticut,

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Speaker 14: flooding roadways in New York. Vehicles were stranded in pockets

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Speaker 14: of high water and water pouring over a train in

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Speaker 14: Manhattan's Grand Central Terminal. Commuter rail lines into suburban Long

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Speaker 14: Island and New Jersey were suspended in places, flash flood

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Speaker 14: warnings and effect for parts of New York City, New Jersey,

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Speaker 14: and Philadelphia. States of emergency have been declared in New

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Speaker 14: Jersey and New York City. With more on the weather,

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Speaker 14: here's Bloomberg meete religius Craig Allen.

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Speaker 15: The delus from last evening. That's gone. There are still

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Speaker 15: some showers around. They'll be moving out of the area.

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Speaker 15: All flood alerts have been canceled. I mean, it must

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Speaker 15: have been frightening for some of those caught in the

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Speaker 15: flooding range that caused the flash flooding on some of

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Speaker 15: the major interstates around the region.

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Speaker 14: Bloomberg Media relogist Craig Allen. The storms delayed flights from

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Speaker 14: Boston to Washington, d C. The NYPD and politicians gathered

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Speaker 14: at the funeral Thursday for the officer killed in the

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Speaker 14: Midtown Manhattan mass shooting this week. Ditital Islam was off

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Speaker 14: duty working security when he was fatally shot by a

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Speaker 14: gunman at three forty five Park Avenue. Islam is one

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Speaker 14: of three funerals these past few days. Also yesterday, funeral

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Speaker 14: services took place for Blackstone executive Wesley Lapatner. Her fourteen

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Speaker 14: year old daughter gave the eulogy.

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Speaker 11: My mom was like my Rocky.

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Speaker 2: I would talk to her and I can't or canny news,

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Speaker 2: nothing else would make it better.

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Speaker 14: Funeral services were held for Roudent employee Julia Hyman on Wednesday.

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Speaker 14: Israel's military intelligence agency is undergoing changes. The service is

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Speaker 14: making profound revisions, including reviving an Arabic language recruitment program

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Speaker 14: for high school students and training all troops in Arabic

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Speaker 14: and Islam. It comes after the October seventh, twenty twenty

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Speaker 14: three attack by hamas global news twenty four hours a

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Speaker 14: day and whenever you want it with the Bloomberg News

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Speaker 14: Now Michael Barr and this is Bloomberg.

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Speaker 6: Karen all right, Michael Barr, thank you.

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Speaker 2: Time now for the Bloombergy sports Okay, brought to you

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Speaker 2: by Flushing Bank, and here's John stash Hour.

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Speaker 6: John, good morning, Good morning, careen.

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Speaker 16: It was let's make a deal day throughout baseball and

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Speaker 16: perhaps no team busier just before the trade deadline than

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Speaker 16: the Yankees. They had already added three players. They added

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Speaker 16: four more. There are three relief pitchers. David Bednar was

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Speaker 16: a two time All Star in Pittsburgh. Camillo de Val

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Speaker 16: had over one hundred career saves, while in San Francisco,

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Speaker 16: Jake Bird comes from Colorado. And then in the eighth

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Speaker 16: inning of the Yanks seven to four went over Tampa Bay.

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Speaker 16: They acquired a player who was in the opposing dugout.

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Speaker 16: Jose Caballero has been Baseball's best base dealer of the

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Speaker 16: past two seasons. Aaron Boom impressed with what the front office,

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Speaker 16: SA chief.

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Speaker 11: Love what they were able to do.

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Speaker 17: I think we're a better club today than yesterday, and

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Speaker 17: certainly today than we were last week. And now we

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Speaker 17: know what we were going with and what we got,

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Speaker 17: you know.

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Speaker 16: Onward, they win over the Rays the third in a row.

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Speaker 16: They jumped to a seven nothing lead. It was seven

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Speaker 16: to four when there was a rain delay of nearly

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Speaker 16: three hours and then no scoring after that. Yanks down

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Speaker 16: three and a half behind Toronto, playing tonight in Miami

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Speaker 16: and the Metz Hosta Giants. Mets have a new center fielder,

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Speaker 16: Cedric Mullin spent eight seasons in Baltimore. A few years ago,

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Speaker 16: had thirty home runs and stolen bases. Carlos Correa, going

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Speaker 16: from Minnesota back to Houston, where he spent seven years,

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Speaker 16: helped the Astros win a World Series. The Red Sox

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Speaker 16: landed pitcher Dustin May from the Dodgers. They beaten May

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Speaker 16: in a game a few days ago at Benway. Taylor Rogers,

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Speaker 16: whose twin brother Tyler was just acquired by the Mets,

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Speaker 16: was traded for the second day in a row. He's

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Speaker 16: touring the NL Central, went from Cincinnati to Pittsburgh and

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Speaker 16: now the Cubs. A year ago, the Knicks sent a

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Speaker 16: boatload of draft picks to the Nets from Michel Bridges.

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Speaker 16: He averaged eighteen points a game, led the NBA AD

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Speaker 16: minutes played in. Bridges now has a new contract with

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Speaker 16: the Knicks four years, one hundred and fifty million, he

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Speaker 16: has never missed a game in his seven year career.

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Speaker 11: John Staneshawer Bloomberg Sports.

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Speaker 1: Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 1: and around the world on Bloomberg dot Com and the

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Speaker 1: Bloomberg Business Altum. This is Bloomberg Daybreak.

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Speaker 3: Good morning, I'm Nathan Hager here. It is August first,

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Speaker 3: and as promised, President Donald Trump has announced a slew

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Speaker 3: of new terror frights on countries around the world, after

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Speaker 3: announcing deals with a handful of them in recent weeks.

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Speaker 3: But former US trade negotiator Steven Olsen says he wouldn't

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Speaker 3: call these deals.

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Speaker 18: What we've got here are a series of extremely vague

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Speaker 18: framework agreements which will require additional negotiations before they're actually

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Speaker 18: translated into anything even approximating well, we could legitimately refer

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Speaker 18: to a trade agreement.

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Speaker 3: Steven Olsen is now a senior fellow at the Institute

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Speaker 3: of Southeast Asian Studies and for more. We're joined this

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Speaker 3: morning by Bloomberg News Senior editor Bill Ferries. So, Bill,

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Speaker 3: what do we have this morning?

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Speaker 11: Good morning, Good morning. So yeah, we're here.

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Speaker 19: It's been a long bumpy road since those April second

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Speaker 19: Liberation Day tariffs were first announced, We've seen a lot

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Speaker 19: of pauses and fits and starts since then. This does

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Speaker 19: seem to be a kind of the moment.

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Speaker 14: Now.

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Speaker 19: President Trump, as you said, unleashed a whole slew of tariffs,

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Speaker 19: some some big surprises in there, some countries getting more

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Speaker 19: than they bargained for, and I think the baseline rate

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Speaker 19: of ten percent kind of a pleasant surprise to other

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Speaker 19: countries who maybe had been expecting that to increase. So

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Speaker 19: the market's kind of still digesting this, and it's you know,

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Speaker 19: there's still countries, big, big outliers there like China and

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Speaker 19: India still looking to make deals. So it does seem

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Speaker 19: like the deadline has been reached, but there's still going

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Speaker 19: to be a lot going on in the days and

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Speaker 19: weeks in head.

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Speaker 3: Well, let's get into that. What could we see over

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Speaker 3: the next few days here, particularly when we're seeing you know,

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Speaker 3: some countries like Switzerland and Canada getting hit with much

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Speaker 3: higher rates than that ten percent baseline you just mentioned.

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Speaker 19: Yeah, I think those are two of the big surprises,

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Speaker 19: particularly Switzerland getting a thirty nine percent tariff when you

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Speaker 19: consider that many of its neighbors who are EU nations

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Speaker 19: got about a fifteen percent. Switzerland, of course, exports huge

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Speaker 19: amount of pharmaceuticals to the US, so that's going to

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Speaker 19: have an immediate hit on drug prices once that comes

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Speaker 19: into effect August seventh. And out in Asia, you've seen

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Speaker 19: countries or governments like Taiwan getting twenty percent, while two

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Speaker 19: of its biggest rivals, Japan and South Korea, were at

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Speaker 19: fifteen percent. So the effect of these tariffs as it

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Speaker 19: plays out in the days and weeks ahead, is going

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Speaker 19: to be shifting kind of the competitive landscape between countries

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Speaker 19: that may you know, have typically competed in similar products

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Speaker 19: but have different rates when it comes to exporting to

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Speaker 19: the US.

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Speaker 3: To your point, I guess we've heard from Taiwan as

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Speaker 3: well that they consider that twenty percent rate that you

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Speaker 3: just mentioned temporary and that more negotiations could be to come.

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Speaker 3: Is that what we should expect here, that even more

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Speaker 3: of these countries could keep negotiating even after this August

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Speaker 3: first deadline that's coming gone.

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Speaker 19: Yeah, I mean, so the August first deadline that will

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Speaker 19: those tariffs are sposed to kick in August seventh. In theory,

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Speaker 19: I think there's going to be time there to negotiate

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Speaker 19: But last, yes, I think nations, if they've learned anything

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Speaker 19: about President Trump, it's that he's a deal maker. He

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Speaker 19: likes to make deals. They the White House may feel

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Speaker 19: like it has made those deals. But I think if

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Speaker 19: a if a country comes in, if India or a

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Speaker 19: Taiwan comes in, and they say, you know, they find

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Speaker 19: a way to perhaps buy more American products or or

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Speaker 19: make some changes. I don't think that down the road

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Speaker 19: we're you know, I think down the road, I think

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Speaker 19: we're going to see more deals getting tweaked. And that's

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Speaker 19: what a lot of governments are going to be banking

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Speaker 19: on going forward.

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Speaker 3: So if we do see these terrif rates kicking in,

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Speaker 3: as you mentioned on August seventh, once the US Customs

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Speaker 3: and Border Protection gets that time to adjust to this,

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Speaker 3: what's the potential economic impact from where these terif rates lie.

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Speaker 19: Now it's a huge global economic experiment and an experiment

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Speaker 19: for the US economy. I mean, these tariffs, these US

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Speaker 19: tariffs are now going to be at the highest rate

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Speaker 19: since World War Two. And even if some countries are

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Speaker 19: breathing a sigh of relief that they got just ten percent,

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Speaker 19: and I'm thinking, you know, countries like Singapore for instance,

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Speaker 19: ten percent. The average US tariff was about two percent

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Speaker 19: six months ago. So these are huge changes and they

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Speaker 19: will continue to trickle through into the US economy and

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Speaker 19: it's hard to not see that starting to affect inflation

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Speaker 19: more seriously in the months ahead.

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Speaker 3: And on top of all this bill, I guess we're

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Speaker 3: still waiting for a lot of sectoral tariff announcements as well.

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Speaker 3: I mean, what could that mean when it comes to

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Speaker 3: certainty in the market.

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Speaker 19: Yeah, there is still a lot of uncertainty. There are

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Speaker 19: products pharmaceuticals are chief among them, semiconductors, those are still

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Speaker 19: being subject to what the US calls these Section two

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Speaker 19: three two investigations to see if there's a national security risk,

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Speaker 19: and presumably if there are, that allows Donald Trump to

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Speaker 19: put additional tariffs on those products. So, by no means

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Speaker 19: is this the end of it, just because countries have

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Speaker 19: gotten their number some of the products they export Switzerland

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Speaker 19: I said thirty nine percent, but a big pharma exporter,

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Speaker 19: they could be seen increased tariffs on those products once

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Speaker 19: the US reaches those decisions.

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Speaker 3: And not the end of it, but maybe the market

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Speaker 3: adjustment to what's happening now is just beginning. Thank you.

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Speaker 14: For this.

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Speaker 3: Bloomberg News Senior editor Bill ferries with us on this

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Speaker 3: August first, Karen.

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Speaker 2: Nathan, we're also focusing on the markets in big tech

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Speaker 2: earnings this morning. Shares of Amazon, they are down more

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Speaker 2: than eight percent, Apple up. It's higher by almost two

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Speaker 2: percent right now. And this follows yesterday's After the Bell

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Speaker 2: reports for more, We're pleased to welcome Bloomberg Radio and

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Speaker 2: TV anchor Kreedie Goopta Creedy.

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Speaker 6: Good morning, Hey, Chriatie.

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Speaker 2: Let's start with Amazon, because it's really hard to ignore

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Speaker 2: the stock move this morning.

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Speaker 6: What are investors reacting to?

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Speaker 20: Good morning, Karen, Yeah, it's been a really interesting tech

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Speaker 20: earning story, A tale of two. I think is fair

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Speaker 20: to say Amazon cheres down by eight percent, treating about

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Speaker 20: two hundred and fifteen.

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Speaker 11: Dollars a share.

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Speaker 20: This is all about weakness when it comes to Amazon

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Speaker 20: Web services. When you think Amazon, we think about the packages,

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Speaker 20: we think about the e commerce business. But ultimately they

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Speaker 20: are pivoting firmly in the tech direction and that's where

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Speaker 20: they've disappointed the market.

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Speaker 1: Now.

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Speaker 20: It doesn't help that we also got Microsoft earnings just

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Speaker 20: twenty four hours before, which really set a positive tone

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Speaker 20: for cloud adoption for the Asia kind of services that

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Speaker 20: they had, So the expectations were pretty high for Amazon

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Speaker 20: to impress the market, and to be fair, they did

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Speaker 20: in some ways. Their revenues did come in better than expected,

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Speaker 20: but not by much. And this is a market that

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Speaker 20: is very tough on tech companies right now that the

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Speaker 20: expectations are high and you have to be even better

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Speaker 20: than the expectations. You have to get an A plus

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Speaker 20: plus instead of just and a plus. And this is

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Speaker 20: where Amazon kind of finds itself right now because they're

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Speaker 20: also talking about weaker than expected operating income as well

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Speaker 20: as some of the sales growth when it comes to aws.

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Speaker 11: So that big idea of spend.

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Speaker 20: Big on AI, spend big on cloud and see that

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Speaker 20: kind of multiply ultimately over time. That's the shadow of

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Speaker 20: doubt that's being cast from Wall Street this morning.

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Speaker 2: And it really did seem like CEO Andy Jasse he

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Speaker 2: had a longer view when it came to all of this,

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Speaker 2: but he still couldn't ease those concerns on the earnings call,

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Speaker 2: could he?

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Speaker 11: He couldn't.

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Speaker 20: He's trying to use that magic word that I think

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Speaker 20: we've seen and not just the tech companies in the

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Speaker 20: tech space, but across corporate America and arguably the global

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Speaker 20: corporate sphere, which is artificial intelligence. And there was an

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Speaker 20: era where every time you said artificial intelligence, the stock

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Speaker 20: would just spike because of this kind of momentum driven story.

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Speaker 20: And he's making that point. He says, look, we're very

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Speaker 20: early days in that investment story. We know Amazon has

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Speaker 20: that massive anthropic venture as well, and they are competing

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Speaker 20: with the likes of Alphabet, Microsoft, Oracle among others as

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Speaker 20: well in the out space.

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Speaker 11: There. He's saying, give it some time.

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Speaker 20: But this is now at a point where Wall Street

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Speaker 20: is looking at these AI kind of expectations, looking at

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Speaker 20: these AI investments and say when is it going to

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Speaker 20: pay off? And Andy Jesse wasn't able to make that case.

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Speaker 2: All right, well, we're seeing better reaction to Apple this

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Speaker 2: morning it reported fastest revenue growth in more than three years.

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Speaker 6: What else did you take away from this?

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Speaker 20: You know, it's funny because we go into Amazon with

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Speaker 20: such a strong earnings expectations. With Apple, you went in

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Speaker 20: with some pretty beat up earnings expectations.

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Speaker 11: The idea that the tariff story would really.

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Speaker 20: Eat into the bottom line, would eat into the supply chains,

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Speaker 20: especially as Apple tries to move their supply chain from

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Speaker 20: China to India. And you actually saw the opposite on

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Speaker 20: two key fronts. One that so much of those tariffears

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Speaker 20: actually showed up and people buying iPhones ahead of time

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Speaker 20: expecting the prices to go up, So that was good

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Speaker 20: news for their bottom line revenue. But also the fact

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Speaker 20: that they are actually doing better than expected in China.

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Speaker 20: And this has been a key sticking point for Apple.

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Speaker 20: Because Apple is ultimately an American lug product, there are

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Speaker 20: plenty of competitors in Asia as well, and they haven't

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Speaker 20: been able to have the foothold and the growth in

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Speaker 20: that part of the world that they were really hoping for,

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Speaker 20: to the point that just this week has been reported

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Speaker 20: that they shuttered their first retail store in China, really

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Speaker 20: kind of showing that weakness that they've had there. I

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Speaker 20: think it's crucial though, that Apple has at least today

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Speaker 20: convinced investors that is no longer the narrative. The question

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Speaker 20: now moving forward is cand of sustain that growth in

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Speaker 20: the iPhone picture, but also in Asia.

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