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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 Amy Morris. Here

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

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Speaker 3: Amy.

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Speaker 1: Reaction continues to pour into Apple's unveil of its long

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Speaker 1: awaited new artificial intelligence features, including a partnership with chet

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Speaker 1: GPT maker OpenAI. Apple stock fell almost two percent yesterday.

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Speaker 1: It's down another half percent in early trading. A new

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Speaker 1: AI platform called Apple Intelligence was the highlight of the

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Speaker 1: company's Worldwide Developers Conference presentation. Here's Apple CEO Tim Cook.

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Speaker 4: Recent developments and generative intelligence and large language models offer

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Speaker 4: powerful capabilities that provide the opportunity to take the experience

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Speaker 4: of using Apple products to new heights. Introducing Apple Intelligence,

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Speaker 4: the new personal intelligence system that makes your most personal

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Speaker 4: products even more useful and delightful, Tim.

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Speaker 1: Cook says the technology will help summarize text, create a

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Speaker 1: regional images, and retrieve the most relevant data when users

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Speaker 1: need it. Bloomberg Chief Apple corresponded, Mark German says the

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Speaker 1: company did not gain ground though on tech peers like Alphabets,

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Speaker 1: Google and Microsoft.

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Speaker 5: You saw nothing today that's better than the competition. You

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Speaker 5: saw nothing today that's different from the competition except marketing

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Speaker 5: and a focus on privacy. Right, So that's the difference here.

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Speaker 5: They're not the first, but they're also not the best,

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Speaker 5: and they're not the most advanced. They're here extremely late,

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Speaker 5: and they showed up to the party without a gift.

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Speaker 1: Bloomberg's Mark German says. Apple also announced plans to launch

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Speaker 1: its Vision Pro headset internationally. Pre Orders will begin in China,

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Speaker 1: Hong Kong, Japan, and Singapore on.

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Speaker 2: Thursday, and Elon Musk says he'll ban Apple devices from

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Speaker 2: his companies if OpenAI software is integrated into the products

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Speaker 2: at the operating system level. We get more with Bloomberg's

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Speaker 2: Charlie Palette.

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Speaker 3: The remarks followed a presentation by Apple where it said

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Speaker 3: customers would have access to open AI's chat GPT chatbot

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Speaker 3: through the Siri Digital Assistant. Apple plans to roll out

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Speaker 3: the capabilities as part of a suite of new AI

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Speaker 3: features later this year. Musk co founded open Ai, but

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Speaker 3: had a falling out with the San Francisco based startup.

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Speaker 3: Writing on x, the social network that he owns, Musk said, quote,

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Speaker 3: if Apple integrates open Ai at the OS level, then

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Speaker 3: Apple devices will be banned at my company's in New

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Speaker 3: York Charlie Palett Bloomberg Radio.

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Speaker 1: Okay, Charlie, thank you. Turning to the economy, we are

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Speaker 1: just a day away from a double dose of economic

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Speaker 1: news that could jolt markets. Tomorrow morning we get the

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Speaker 1: latest reading on consumer prices, followed by an afternoon FED decision.

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Speaker 1: Bloomberg's Michael McKee says the inflation print could have a

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Speaker 1: big impact on markets.

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Speaker 6: The CPI number is going to set the trading town

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Speaker 6: for the summer because we won't get enough other data

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Speaker 6: to really change people's minds over the rest of the summertime,

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Speaker 6: because we've got other events that will come in and

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Speaker 6: affect people, so it's not gonna be as much about

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Speaker 6: the data.

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Speaker 1: Bloomberg's Mike McKee says, since it's June twenty twenty two,

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Speaker 1: peak headline inflation has slowed by five point seven percentage points.

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Speaker 2: Had some key economic data overseas this morning. UK unemployment

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Speaker 2: has unexpectedly risen to the highest in more than two

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Speaker 2: and a half years. Unemployment rose to four point four

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Speaker 2: percent in the three months through to April, while pay

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Speaker 2: increase is held steady. The mixed data is expected to

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Speaker 2: complicate the Bank of England's decision about when to cut

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Speaker 2: interest rates well staying in.

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Speaker 1: Europe, amy Bill Gross says the Eurozone is the place

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Speaker 1: to look for opportunities. His assessment came in the aftermath

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Speaker 1: of election results showed a right word shift by the

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Speaker 1: regent's voters. Bill Gros spoke to Bloomberg the day after

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Speaker 1: two of Europe's most influential leaders, Francis Emanuel Macrome and

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Speaker 1: Germany's ole Off Schultz, suffered surprise defeats in Sunday's European

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Speaker 1: Union Parliament elections at the hands of the far right.

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Speaker 7: I think in terms of an attraction German tenure boons

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Speaker 7: and French oates the tenure. There there are spreads of

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Speaker 7: narrowed significantly in the past month or two relative to

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Speaker 7: treasuries and today as well by eight or ten basis points.

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Speaker 7: So there's coming to a point where European bonds are

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Speaker 7: more attractive than treasury bonds in my opinion.

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Speaker 1: And according to Bill Gross, the recent market reaction to

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Speaker 1: other elections in Mexico, India, and South Africa also offers

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Speaker 1: a guide for how the US campaign might affect assets

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Speaker 1: come November.

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Speaker 2: And speaking of the US election, Donald Trump is slated

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Speaker 2: to meet with Senate Republicans today before he heads off

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Speaker 2: to a meeting with prominent CEOs at the Business Roundtable

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Speaker 2: in Washington. Bloomberg's At Baxter has those details.

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Speaker 8: This is the latest effort to plot out priorities if

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Speaker 8: Trump wins, and also the pathway to get there. In

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Speaker 8: an email obtained by Bloomberg, Senator John Burrosso, part of

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Speaker 8: the GOP leadership, made the invite, saying it will be

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Speaker 8: helpful to hear directly from Trump about his summer and

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Speaker 8: to share strategic planning. The CEO meeting is being hosted

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Speaker 8: by the Business Roundtable in Washington, and of course Trump

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Speaker 8: is hoping for backing and monetary help heading into November.

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Speaker 8: Ed Baxter, Bloomberg Radio. Okay and thank you.

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Speaker 1: Meanwhile, former President Trump set for an interview with New

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Speaker 1: York City probation officers yesterday for about a half hour.

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Speaker 1: That interview will help a judge decide how much time,

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Speaker 1: if any, Trump spends behind bars for falsifying business records.

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Speaker 1: That meeting was conducted virtually the former president was at

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Speaker 1: his home in Florida, the officers were in New York,

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Speaker 1: sources tell Bloomberg News. Trump's lawyer also participated sentencing set

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Speaker 1: for July eleventh. Trump and his legal team have already

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Speaker 1: taken steps to file an appeal.

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Speaker 2: And now to a story that could fuel the debate

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Speaker 2: about whether the Supreme Court has become politicized. Justice Samuel

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Speaker 2: Alito and Justice John Roberts were secretly recorded at a

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Speaker 2: High Court gala last week by Lauren Windsor, a woman

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Speaker 2: claiming to be a conservative Catholic. They discussed whether compromise

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Speaker 2: is possible between the left and right. Justice Alito told

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Speaker 2: the woman one side or the other is going to win,

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Speaker 2: and then the woman said this.

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Speaker 9: I think that the solution really is like winning the

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Speaker 9: moral argument, Like people in this country who believe in

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Speaker 9: God have got to keep fighting for that to return

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Speaker 9: our country to a place of a godly dast Oh.

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Speaker 10: I agree with you, I agree with you.

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Speaker 2: That conversation with Justice Alito was posted online by Windsor,

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Speaker 2: who describes herself as an advocacy journalist. The New York

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Speaker 2: Times reports Chief Justice John Roberts pushed back in his

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Speaker 2: conversation with Windsor when she asked him whether the Court

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Speaker 2: should move the country toward a more moral path. The

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Speaker 2: charity that hosted the GALA issued a statement saying it

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Speaker 2: condemns the surreptitious recording of justices at the event. 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 world, and

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Speaker 2: for that we're joined by Bloomberg's Michael bar Good morning, Michael.

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Speaker 10: Good morning Amy. It was supposed to be the first

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Speaker 10: in the nation congestion toll in New York City. Now

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Speaker 10: the city's transit chief is speaking out after it was

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Speaker 10: put on hold by New York Governor Kathy Hokel last week.

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Speaker 10: Much of the money was to go to the city's bus, subway,

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Speaker 10: and commuter rail system. Modernization projects like electric buses and

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Speaker 10: accessible stations are on the so called deprioritize list, as

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Speaker 10: the MTA seeks to preserve the basic operation of the

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Speaker 10: aging system. MTA CEO Channel liber says they'll also try

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Speaker 10: to ensure service is not reduced.

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Speaker 11: It may feel right now like things are a little

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Speaker 11: crazy and even that there's a crisis, but we need

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Speaker 11: to stay focused so that we can maximize the situation

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Speaker 11: for our riders.

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Speaker 10: The plan to charge drivers fifteen bucks and more to

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Speaker 10: drive through Midtown was expected to yield four hundred million

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Speaker 10: dollars this year and then a billion dollars annually. New

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Speaker 10: York Governor Kathy.

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Speaker 12: Uncle I made the decision to not go forward to

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Speaker 12: pause at this time because I don't think New Yorker

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Speaker 12: is based on what I've heard from people all over

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Speaker 12: the city and the advocates and the people who are

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Speaker 12: deeply concerned about what it'll do to our economy, that

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Speaker 12: a fifteen dollars toll at this time is too much.

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Speaker 10: The MTA still plans to pursue congestion pricing. The US

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Speaker 10: Army Corps of Engineers says the shipping channel at the

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Speaker 10: site of the collapse Francis Scott Key Bridge in Baltimore

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Speaker 10: has been fully restored. A limited shipping lane had been

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Speaker 10: operational for three weeks since the bridge's collapse in late March.

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Speaker 10: The Corps has removed about fifty thousand tons of bridge wreckage.

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Speaker 10: North Dakota voters today will to sign a ballot initiative

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Speaker 10: imposing an age limit on the state's congressional delegation. A

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Speaker 10: person would be barred from running for Congress in the

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Speaker 10: state if they are eighty or older. Jared Hendricks is

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Speaker 10: with the group Retire Congress North Dakota, which is behind

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Speaker 10: the measure.

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Speaker 1: There is a lot of discontent with Congress right now,

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Speaker 1: and particularly there's a lot of support both for term

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Speaker 1: moments and for age limits.

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Speaker 10: Jared Hendrix, with Retire Congress says in several states there

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Speaker 10: are already age limits on state judges. Jurors are set

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Speaker 10: to resume deliberations in the criminal case against President Joe

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Speaker 10: Biden's son over a twenty eighteen gun purchase, when prosecutors

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Speaker 10: say Hunter Biden was in the throes of a crack

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Speaker 10: cocaine addiction. Hunter Biden's lawyers have argued that he did

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Speaker 10: not consider himself an addict when he bought the gun.

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Speaker 10: Global News twenty four hours a day and whenever you

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Speaker 10: want it with the Bloomberg News. Now, I'm Michael Barr,

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Speaker 10: and this is Bloomberg. Amy.

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Speaker 2: All right, thank you, Michael. Time now for our Bloomberg

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Speaker 2: Sports Updated. For that, we bring in John stash Hour.

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Speaker 3: Good morning, John, Good morning Amy.

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Speaker 13: One reason the Yankees have the most wins in baseball

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Speaker 13: they stayed healthy. Gerrett Cole went down on spring training.

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Speaker 13: Looks like he'll be back through in the lineup up

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Speaker 13: state intact until Juan Soto's injured arm last week. There

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Speaker 13: was a sigh of relief and it was learned it

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Speaker 13: wasn't serious, and after sitting out the weekend series with

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Speaker 13: the Dodgers, Soto returned in Kansas City as the designated hitter.

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Speaker 13: Had a hit and a walk and the Yanks score

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Speaker 13: twice in the first hitting hadded two more in the fourth.

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Speaker 10: They beat the Royals four to two.

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Speaker 13: Carlos Rodin went seven and Eight's won his seventh in

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Speaker 13: a row. Last season, Rodn was three and eight as

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Speaker 13: ERA was near seven. This year he's nine to two

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Speaker 13: with an ERA under three. Stanley Cup Final Game two

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Speaker 13: in Florida, Edmonton was shut out of the Openers scored

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Speaker 13: first period.

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Speaker 10: It was one one after two.

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Speaker 13: To that point, the Panthers had out shot the Oilers

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Speaker 13: twenty two to seven and Florida won the game in

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Speaker 13: the third.

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Speaker 4: Period, ck Ben Larson straight on Rodriguez to Londell Anton

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Speaker 4: Lundell near shot.

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Speaker 3: Let's have rip it to they score.

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Speaker 7: Heaven Rodriguez gotta stick on a.

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Speaker 3: Hand the Panther's makeup pet. It's three one, seven thirty

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Speaker 3: four to go with the third Heaven Rodriguez has two.

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Speaker 13: I know QAA Panthers added an empty netter one four

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Speaker 13: to one. Teams up two to nothing in the Cup

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Speaker 13: Final have won the series forty nine of fifty four times.

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Speaker 13: Dan Hurley staying at Yukon turning down a Lakers job

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Speaker 13: that would have more than double his salary. Hurley will

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Speaker 13: now try to coach the Huskies to an NCAA three pint,

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Speaker 13: something not done since the UCLA dynasty. And Mike Tomlin

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Speaker 13: has a three year extension in Pittsburgh, now signed through

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Speaker 13: twenty twenty seven. Tomlin has been the Steelers coach for

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Speaker 13: seventeen years. He's never had a losing season. USO for

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Speaker 13: Tea's off Thursday in North Carolina. The field will include

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Speaker 13: the Aussey Adam Scott. He got one of the last

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Speaker 13: spots to keep his streak going. Scott has played in

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Speaker 13: all of the last ninety two Majors. John stash Award

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Speaker 13: Bloomberg Sports Emmy, Nathan.

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Speaker 14: Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,

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Speaker 14: and around the world on Bloomberg dot Com and the

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Speaker 14: Bloomberg Business app. This is Bloomberg Daybreak.

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Speaker 3: Good morning.

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Speaker 1: I'm Nathan Hager Ai. For the rest of us It's

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Speaker 1: how Apple's top software engineers describing the Apple Intelligence features

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Speaker 1: just unveiled at the Iphonemaker's Worldwide Developers Conference. Apple's long

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Speaker 1: awaited bid to catch up in a fast growing space

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Speaker 1: that rivals like Microsoft and Google have already made massive

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Speaker 1: strides in joining us for more, as Bloomberg Intelligence Senior

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Speaker 1: tech analyst Matthew Bloxham Matthew, good morning, we've seen kind

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Speaker 1: of an underwhelmed market reaction to what we saw at

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Speaker 1: the WWDC yesterday. Are these features what Apple needs to

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Speaker 1: get itself into the AI game?

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Speaker 15: Yeah, I think they are. I mean that they're only

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Speaker 15: a starting point. I think we have to remember the

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Speaker 15: context that in the last couple of months, the Apple

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Speaker 15: share price is up something like eighteen to twenty percent,

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Speaker 15: so that there was a lot of share price movement

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Speaker 15: in anticipation of this announcement, and I think, yeah, we

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Speaker 15: had pretty much everything that had been flagged before. So,

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Speaker 15: you know, as you said, they need to step into

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Speaker 15: the AI game. This is a kind of very broad

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Speaker 15: range of updates to the full sweet of their apps

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Speaker 15: in the ecosystem, and it links very specifically to their

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Speaker 15: hardware lineup, because you know, unless you've got an iPhone

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Speaker 15: fifteen pro or promax. You're going to have to get

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Speaker 15: an iPhone sixteen when they come out. I guess September

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Speaker 15: October time to get access to this Apple intelligence platform.

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Speaker 15: So it could be a welcome boost to their iPhone sales,

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Speaker 15: which have been sluggish for some time.

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Speaker 1: Now, what kind of a boost do you think this

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Speaker 1: could give to Apple's bottom line when it comes to

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Speaker 1: those sluggish smartphone cells.

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Speaker 15: I mean, it's a good question if you look at

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Speaker 15: consensus for the kind of next financial year, which would

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Speaker 15: you reflect that the iPhone sixteen sales the market's looking for,

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Speaker 15: you know, kind of five or six percent growth from

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Speaker 15: iPhone from you know, a kind of single digit decline

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Speaker 15: this year, so quite a big swing, and that enough

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Speaker 15: is enough to kind of really you know, I guess

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Speaker 15: billin's of dollars to the bottom line. So it kind

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Speaker 15: of could be a really important driver for it. And

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Speaker 15: I guess there's going to be a big debate between

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Speaker 15: now and September about just how many people are going

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Speaker 15: to see this as the catalyst to finally make an

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Speaker 15: upgrade to their iPhone.

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Speaker 1: Seems like the centerpiece of what we saw yesterday was

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Speaker 1: this partnership that Apple's going to enter into with open Ai,

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Speaker 1: the chat GPT parent. Is that going to be enough

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Speaker 1: a tie up with an existing startup to make strides

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Speaker 1: against Microsoft against Google.

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Speaker 15: Yeah, it's interesting, you know. I mean, I think Apple

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Speaker 15: would dispute that it was a centerpiece. I think they

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Speaker 15: see it as a kind of icing on top of

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Speaker 15: the kat you know. Really, what they majored on yesterday

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Speaker 15: was the Apple created gent Aai features that are integrated

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Speaker 15: into the operating system and into the device hardware, and

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Speaker 15: that a large amount of what they showcased is based

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Speaker 15: on the Apple Gentivai tech, but they want to be

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Speaker 15: had to give their users access to third party products,

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Speaker 15: of which chat GPT is the leading in that kind

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Speaker 15: of genre. And I think what we're going to see

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Speaker 15: over time is potentially more deals alongside that. There's been

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Speaker 15: a lot of talk about them doing a deal with

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Speaker 15: Google on their Gemini Gentlevai platform. So what you could

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Speaker 15: eventually end up with over the next year or two is,

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Speaker 15: you know, the core on device Apple created Gingivai platforms,

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Speaker 15: and then this range of extras on top chat GPT

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Speaker 15: being one, Gemini being an other, perhaps even an Apple

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Speaker 15: rival product to that and the user can then choose

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Speaker 15: which one they go with.

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Speaker 1: In our last thirty seconds, that integration with open ai

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Speaker 1: seems to be something that cut Tesla CEO Elon Musk's attention.

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Speaker 1: He's saying that he would ban Apple devices if it

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Speaker 1: gets too integrated. I mean, how big an issue is that?

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Speaker 15: Yeah, I mean, I guess you know, in the ground

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Speaker 15: scheme of things, you know, Elon Musk's Empire business isn't

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Speaker 15: going to count for too many devices, but you know,

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Speaker 15: it is an important issue that genevai does open up

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Speaker 15: people to all sorts of privacy and security risks. Now,

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Speaker 15: Apple's made a big thing about keeping privacy at the

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Speaker 15: central doing AI, but it's going to be an issue

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Speaker 15: that I've always have to remember that. You know, Elon

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Speaker 15: Musk has formed with GPT and open Ai. He's also

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Speaker 15: developing a rival product to that. So there's kind of

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Speaker 15: lots of things in the mix to contextualize his comments.

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Speaker 15: But you know, definitely privacy is a big issue for

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Speaker 15: journish AI and how we use it.

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