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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. They say it's the

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Speaker 1: Bloomberg Daybreak Europe podcast. Good morning, It's Friday, the thirty

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Speaker 1: first of October. I'm Stephen Carroll in London. Coming up today.

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Speaker 1: Strong earnings from Amazon and Apple boost stock market sentiment

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Speaker 1: after a brief pause in the global equity rally, King

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Speaker 1: Charles begins the formal process of removing his brother Andrew's

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Speaker 1: royal title. Plus, with NATO's Arctic footprint expanding, Denmark is

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Speaker 1: raising its military commitment to Greenland. Let's start with a

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Speaker 1: roundup of our top stories. Apple is predicting a surge

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Speaker 1: in sales in the last three months of the year

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Speaker 1: from its new iPhones. The tech giant is now expecting

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Speaker 1: revenues to rise by up to twelve percent over the quarter.

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Speaker 2: The forecast is double what.

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Speaker 1: Analysts had expected and comes after Apple reported increases in

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Speaker 1: sales and earnings per share the beat estimates in the

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Speaker 1: three months to the end of September. That's despite revenue

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Speaker 1: he is falling almost four percent in China and taris

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Speaker 1: costing the company over one billion dollars. Nobila Popol is

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Speaker 1: Senior director for Data and Analytics at IDC, Apple.

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Speaker 3: Still maintains a really dominant share of the premium market

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Speaker 3: and that you know, they haven't lost hold of that.

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Speaker 3: Of course, certainly competitors are coming up, but I think

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Speaker 3: the biggest competition that Apple sees is certainly in China,

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Speaker 3: but overall globally, we see really strong growth in the

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Speaker 3: segment that Apple plays, which is their premium and they've

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Speaker 3: maintained that ESCBC, you know, year over your ASP growth

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Speaker 3: in iPhone, and I think this is what is going

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Speaker 3: to help drive especially next year.

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Speaker 1: Nobilia Popo from IDC speaking there. These results included roughly

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Speaker 1: two weeks of iPhone seventeen sales, with initial demand appearing strong.

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Speaker 1: Shares an Apple rows by two point three percent in

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Speaker 1: after hours trading. I Meanwhile, Amazon's cloud deners posted the

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Speaker 1: strongest growth right in almost three years. Amazon Web Services

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Speaker 1: reported third quarter revenue of thirty three billion dollars, twenty

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Speaker 1: percent from a year earlier and above the average estimate.

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Speaker 1: The results eased investor concerns that Amazon was over spending

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Speaker 1: on AI, which shares rising thirteen percent postmarket. Overall sales

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Speaker 1: rose by thirteen percent to over one hundred and eighty

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Speaker 1: billion dollars and Amazon expects its shopping chatbot Rufus will

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Speaker 1: help deliver an additional ten billion dollars in annual sales.

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Speaker 1: China's president hu Jinping has warned against breaking supply chains

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Speaker 1: in his first public remarks since meeting US President Donald Trump.

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Speaker 1: In the speech to other world leaders at the APEX summit,

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Speaker 1: she called for multilateralism and collaboration. MEMBERTVS Avon Man is

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Speaker 1: at the summit in South Korea.

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Speaker 2: The message in.

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Speaker 4: That speech was, China is a defender of the global

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Speaker 4: trading system at a time when America is sin of

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Speaker 4: America first policy. We have seen both sides. I commit

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Speaker 4: to at least bringing down the temperature for at least

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Speaker 4: another year. Right that one year, true, certainly is longer

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Speaker 4: than the usual ninety days that we've seen these sort

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Speaker 4: of truces last. So we are seeing here at least

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Speaker 4: some daytime. The question is, of course, how long.

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Speaker 1: It's quite a lad Man adds that key questions remain

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Speaker 1: about how the trade truce reached between the two countries

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Speaker 1: is going to be enforced. The climbed down intentions comes

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Speaker 1: as China's factory activity slump worsened at October, reaching its

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Speaker 1: longest decline in more than nine years. Britain's Prince Andrew

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Speaker 1: has been stripped of his titles and evicted from his

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Speaker 1: royal residence after a scrutiny of his relationship with sex

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Speaker 1: offender Jeffrey Epstein. According to a statement from Buckingham Palace,

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Speaker 1: the King's brother will be known as Andrew Mountbatten Windsor

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Speaker 1: as a formal procedure begins to remove his honors. Royal

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Speaker 1: historian George Gross from King's College, London says the scandal

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Speaker 1: puts the monarchy in a challenging position.

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Speaker 5: The royal family remains key parts of charitabul organizations working

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Speaker 5: on domestic sexual abuse, all of that kind of thing,

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Speaker 5: so for for him to have that and this in

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Speaker 5: the background must be impossibly difficult. And also the public

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Speaker 5: disquiet was very significant on this.

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Speaker 1: That's where was the story in George Gross now. The

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Speaker 1: move follows the publication of a posthumous memoir by one

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Speaker 1: of Epstein's victims, of Virginia, Roberts Giuffrey, containing allegations against Andrew.

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Speaker 1: In the Netherlands, the centris D sixty six party looks

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Speaker 1: said to lead the formation of the next government, with

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Speaker 1: ninety eight percent of votes counted. D sixty six is

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Speaker 1: projected to take twenty six seats in the one hundred

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Speaker 1: and fifty seat parliament. Hitfielder's Far Out Freedom Party is

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Speaker 1: expected to get the same number of seats, but its

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Speaker 1: isolation in parliament means it won't have a role in government.

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Speaker 1: That paves the way for D sixty six leader rob

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Speaker 1: Yetten to become the next prime minister if he succeeds

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Speaker 1: in reaching a coalition deal. Senior economist at abn Amrobank

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Speaker 1: Jan Paul vander Kirk spoke to Bloomberg about what the

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Speaker 1: result could mean for the Dutch economy.

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Speaker 6: That'll be a good thing for the neelins. I think

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Speaker 6: we have an economy which has performed quite well, outperforms

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Speaker 6: European peers. But this constraints domestically quite a bit. So

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Speaker 6: a more pragmatic government which can give some policy certainty

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Speaker 6: in the face of international policy uncertainty would be very

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Speaker 6: much welcomed, at least domestically, but also for companies.

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Speaker 1: Senior ecluomists to Adab A Mamroe Bank, Jan Pol devander

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Speaker 1: kirkha there speaking to Bloomberg as Robbie Atam's cabinet could

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Speaker 1: offer a stark contrast to Hertfielders premiership, and the world's

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Speaker 1: major alcohol makers have lost nearly half their value since

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Speaker 1: twenty twenty one, a total of eight hundred and thirty

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Speaker 1: billion dollars. A Bloomberg index of the beverage market shows

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Speaker 1: how beer, wine and spirit makers have been left out

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Speaker 1: of the global equity rally. James Wilcock has more the

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Speaker 1: hit alcohol.

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Speaker 7: Consumption is four times the size of what happened after

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Speaker 7: the two thousand and eight financial crash. That's how one

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Speaker 7: analyst describe the shift to Bloomberg and why men in

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Speaker 7: the sector think it's a structural change. There are all

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Speaker 7: sorts of reasons. The COVID pandemic sparked, health concerned, weight loss, drugs,

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Speaker 7: celebrities going teetotal. Tariffs and inflation have taken a toll.

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Speaker 7: But the crunch is severe and it has led to

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Speaker 7: job cuts and corporate restructuring as the industry tries to

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Speaker 7: recover from its hangover in London.

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Speaker 2: James Wilcock, Bloomberg.

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Speaker 1: Radio, those are your top stories on the markets. The

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Speaker 1: MSCI Asia Pacific Index is trading slightly higher this morning.

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Speaker 1: The NICKA and Tokyo, though hit a record high earlier,

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Speaker 1: currently up by one point nine percent. The hangs hang

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Speaker 1: in Hong Kong's down by one percent, European stock futures

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Speaker 1: pointing two tens three tents lower. In fact, for eurostocks,

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Speaker 1: fifty futures and Nasdaq futures one point one percent higher

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Speaker 1: after those results from Apple and Amazon, SMP minis are

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Speaker 1: uped by six tenths of one percent on Wall Street

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Speaker 1: as well well.

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Speaker 2: In a moment, we'll bring you more on.

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Speaker 1: Those big tech results, plus a special report from the

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Speaker 1: Arctic Circle and efforts being made to beef up defenses

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Speaker 1: in Greenland. But speaking of beef, there's another story that

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Speaker 1: I've been reading this morning, and it's from our opinion

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Speaker 1: columns to Howard swayu Wan, who's been writing about the

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Speaker 1: rising price of beef and how it means that people

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Speaker 1: are having to pay more for their premium stakes in

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Speaker 1: restaurants around the world. He's been looking, for example, at

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Speaker 1: the ten percent rise that we've seen in prices in

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Speaker 1: London and looking at the underlying causes, including the shortage

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Speaker 1: of beef farmers. How it's in a profession that's not

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Speaker 1: attracting that many more people to it. One of the

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Speaker 1: people he spoke to said that the number of beef

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Speaker 1: farmers under the age of thirty five is two percent.

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Speaker 2: It's also particularly valuable.

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Speaker 1: It's got prestige attached to it as well, and he

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Speaker 1: says that'll continue because you'll get the likes of you know,

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Speaker 1: tech bros and their finance buddies staying with those restaurants,

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Speaker 1: even if prices do go up. All of it's a

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Speaker 1: great read, but actually the part of the struck me

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Speaker 1: most is Horod's defense of him seeing some of the

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Speaker 1: big global economic trends through the prism.

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Speaker 2: Of food and eating out.

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Speaker 1: He writes, the restaurants and food may seem anchored in

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Speaker 1: cultural and social trends, but they are entry points to

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Speaker 1: business ideas and economic processes markets like armies marched on

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Speaker 1: their stomachs, and I couldn't agree more. I'd also add

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Speaker 1: that Howard does this with a sort of insightful touch

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Speaker 1: that always leaves you with an appetite for more as well.

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Speaker 1: You can read his piece at Bloomberg dot com slash opinion,

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Speaker 1: and we'll put a link to it in our podcast

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Speaker 1: show notes. Let's bring you more details now on some

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Speaker 1: of those big tech earnings, Apple predicting a big sales

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Speaker 1: boost from its newest iPhone in the coming months after

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Speaker 1: some disappointing numbers from their Chinese businesses. Let's bring in

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Speaker 1: our tech outure of LAD'SAVAF for more on this. VLAD

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Speaker 1: investors seemed pretty pleased overall with this update from Apple,

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Speaker 1: shares rising and after hours trading. Is this all just

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Speaker 1: excitement about the new iPhone?

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Speaker 8: Yeah?

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Speaker 9: The iPhone is always going to be the defining product

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Speaker 9: for Apple's lineup overall, and honestly, the story with it

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Speaker 9: is very positive. The September quarter was challenged by supply

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Speaker 9: chain disruptions, CEO Tim Cook said, and he insisted based

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Speaker 9: growth for the current quarter, and the third party data

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Speaker 9: that we have been able to get hold of indicates

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Speaker 9: the same thing. The fhone seventeen generation has been very

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Speaker 9: well received. It's a redesign, it's an upgrade, especially for

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Speaker 9: the base model, the most affordable model, and that has

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Speaker 9: resonated with people both in the US and China, the

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Speaker 9: two biggest markets.

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Speaker 1: Not that I went looking for downsides and these numbers

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Speaker 1: of LAD, but how much of a concern is the

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Speaker 1: weakness in China?

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Speaker 2: That drop and revenues that we saw.

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Speaker 9: Well, like I say, it's mostly a blip, but if

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Speaker 9: you do want to look for weakness, it has been

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Speaker 9: on the decline. So over the past two years, I've

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Speaker 9: always only had a single quarter of rising revenue within China.

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Speaker 9: So that is an ongoing challenge and it has so

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Speaker 9: much to do with the China consumer market in itself

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Speaker 9: and the consumer economy. But again, speaking with Ivan Lamb

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Speaker 9: from Counterpoint Research, he told me that you have what

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Speaker 9: he called a perfect storm of triggers for people to

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Speaker 9: upgrade at iPhones now, including all the people who bought

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Speaker 9: one during the COVID pandemic, are looking for an upgrade

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Speaker 9: and this generation of iPhones is given them the reason

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Speaker 9: to do that.

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Speaker 2: Okay, so that's on Apple.

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Speaker 1: Amazon shares also jumping after hours after they reported strong

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Speaker 1: numbers out of their cloud computing division in particular, How

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Speaker 1: did that I suppose growth playoff against the amount of

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Speaker 1: money that Amazon's investing in AI right.

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Speaker 9: Well, investors seem to like it, and they should. Twenty

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Speaker 9: percent growth when you're the world's biggest cloud computing provider

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Speaker 9: is really substantial. Amazon is trailing. The likes of Mezo

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Speaker 9: and Google have better growth rates. But like I say,

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Speaker 9: it is the biggest. Twenty percent is above what anyone

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Speaker 9: has really anticipated, and it's a very encouraging sign for

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Speaker 9: the market leader. That being said, Amazon is spending incredible

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Speaker 9: amounts of money. Is spent a new record in capital

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Speaker 9: expenditures over thirty billion dollars over that September quarter, and

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Speaker 9: its anticipating more than one hundred billion dollars in capital

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Speaker 9: expenditure for the year, and then saying it will spend

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Speaker 9: even more in twenty twenty six.

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Speaker 1: Okay, so something to watch there as well. This has

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Speaker 1: been a week though, where we've had most of the

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Speaker 1: big tech names reporting. What sort of conclusions can we

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Speaker 1: draw from what we heard from these names that have

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Speaker 1: been so central to the global equity rally.

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Speaker 9: Well, I have to keep stressing this capital expenditure number.

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Speaker 9: I need to add up the numbers, but we're talking

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Speaker 9: tens hundreds of billions of dollars. For a good bit

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Speaker 9: of context, TSMC, which is the world's leading chip maker,

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Speaker 9: spends roughly about forty billion dollars per year on its

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Speaker 9: capital expenditures. And that's the company that buys the most expensive,

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Speaker 9: the most advanced machinery to make the most advanced chips

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Speaker 9: and it only requires forty billion.

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Speaker 2: That's a quarters well for spending.

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Speaker 9: Just a little bit less of that is what Meta, Amazon,

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Speaker 9: Microsoft and Google are putting in at the moment. So

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Speaker 9: the question that still hangs over everything is when is

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Speaker 9: that going to pay off? But likes of Microsoft do

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Speaker 9: tell us that they're finding more demand that they're able

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Speaker 9: to fulfill. So at the moment, because there is this

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Speaker 9: AI frenzy that goes from the chip making through the

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Speaker 9: suppliers of cloud computing, two businesses wanting to be ready

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Speaker 9: and wanting to have AI capabilities, the demand still is

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Speaker 9: super strong.

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Speaker 1: Okaylat to have off our tech editor, thank you very

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Speaker 1: much for joining us.

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Speaker 2: Stay with us.

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Speaker 1: More from Bloomberg Daybreak Europe coming up after this. Now

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Speaker 1: in Denmark is raising its military commitment to Greenland, which

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Speaker 1: is seen as crucial to security, along later as expanding

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Speaker 1: Arctic footprint. The efforts are focused on threats coming from Russia.

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Speaker 1: Our Copenhagen reporter Sanavas joins me now for more. Sanna,

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Speaker 1: you went to the remote coast of Greenland for this

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Speaker 1: story and met some of the soldiers that are on

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Speaker 1: patrol there. First of all, tell us about this place.

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Speaker 10: I got the chance to tag al on Danish routs

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Speaker 10: to Greenland on multiple occasions, actually, so both on the

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Speaker 10: west coast and east. It was during the biggest ever

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Speaker 10: military exercise there and they were joined by several NATO

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Speaker 10: allies as well. What I'd say about Greenland is generally

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Speaker 10: is unlike anything that soldiers are used to back in Denmark.

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Speaker 10: It's a very harsh environment with mountains, ice, very challenging terrain,

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Speaker 10: unpredictable weather. All the settlements there, they are extremely remote.

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Speaker 10: Infrastructure is very sparse, so there are no roads connecting

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Speaker 10: any settlements in Greenland.

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Speaker 8: So it's very challenging to defend.

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Speaker 10: And it's really what requires that Denmark and NATO allies

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Speaker 10: as well goes go there to train and to be

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Speaker 10: prepared to protect Greenland in case of a future future

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Speaker 10: war with Russia or anyone else.

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Speaker 1: For that sake, well, let's talk a little bit about

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Speaker 1: what exactly they're doing to prepare for that. What sort

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Speaker 1: of exercises are happening there.

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Speaker 10: Yeah, so it's all sorts of things. Infantry soldiers training,

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Speaker 10: direct confrontations on the ground, exit practicing for kind of

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Speaker 10: like dealing with hijackings at sea, fighters were training refueling

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Speaker 10: in air, so a whole span of things that they're

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Speaker 10: training up there. And of course at the same time,

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Speaker 10: Denmark's government is also investing a lot of extra money.

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Speaker 10: In fact, they've agreed to spend seven billion extra, seven

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Speaker 10: billion dollars extra in the military in the region, so

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Speaker 10: anything from kind of maritime patrol aircraft to icebreakers and

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Speaker 10: Arctic ships. Their focus is really shifted east, so they're

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Speaker 10: investing a lot in their special forces units that are

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Speaker 10: patrolling in the north eastern Greenland and also establishing kind

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Speaker 10: of monitoring stations and raiders in East Greenland. And of

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Speaker 10: course it all comes after Donald Trump he criticized Denmark

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Speaker 10: for under investing in the defense of Greenland and said he.

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Speaker 8: Wanted to take control of the island.

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Speaker 10: It's very obvious that his comments have really been a

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Speaker 10: wake up call in Copenhagen, and it's a big reason

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Speaker 10: why they are now ramping up their presence.

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Speaker 1: Then, and how do people in Greenland feel about this

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Speaker 1: defense ramp up.

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Speaker 10: Yeah, it's mixed. Greenland is I'd say they're very peaceful

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Speaker 10: people and there's a strong tradition. They're kind of wanting

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Speaker 10: the island to be a zone of low tension. It

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Speaker 10: seems Greenland's government is now acknowledging that the security situation

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Speaker 10: has changed and they're now talking about how a military

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Speaker 10: build up is actually necessary to keep the island low tension.

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Speaker 10: But many greenland Is they're very uneasy about more military

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Speaker 10: presence there, I mean the defense of Greenland. It is

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Speaker 10: an area that's still controlled by Denmark, so some see

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Speaker 10: this larger military presence as undermining Greenland's push for greater autonomy.

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Speaker 8: Many have also been nervous.

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Speaker 10: About US presence because of Trump's very assertive rhetoric. The

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Speaker 10: US didn't take part in the exercise this time around,

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Speaker 10: but even Denmark, just Denmark's military.

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Speaker 8: They have to tread very carefully.

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