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Speaker 1: Good morning. It's Wednesday, the thirteenth of September here in London.

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Speaker 1: This is the Blueberg Day By podcast. I'm Caroline Hepga and.

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Speaker 2: I'm Stephen Carroll. Coming up today, BP's CEO, Bernard Looney

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Speaker 2: quits over failing to fully disclose past relationships with colleagues.

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Speaker 1: Apple On veils its latest handsets but increases the price

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Speaker 1: of its top end model, and we.

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Speaker 2: Take a closer look at why a deepening rift between

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Speaker 2: Saudi Arabia and the United Arib Emirates will make it

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Speaker 2: harder to end eight years of war in one of

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Speaker 2: the world's poorest countries.

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Speaker 1: Let's stop with a roundup of our top stories.

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Speaker 2: BP CEO Bernard Looney has resigned over failing to fully

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Speaker 2: disclose past relationships with colleagues. Lonie's exit leaves the oil

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Speaker 2: and gas giant leaderless as the company pushes ahead with

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Speaker 2: a costly transition to low carbon energy. Bloomberg's Managing editor

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Speaker 2: for Energy and Commodity, Simon Casey, says the decision is

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Speaker 2: part of a wider trend at corporations.

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Speaker 3: The CEO's also failing to be honest with their boards. Fundamentally,

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Speaker 3: that's what this is probably about. It's got a lot

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Speaker 3: tougher in recent years. Its boards feel much more empowered

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Speaker 3: to force the rules and the whole being the CEO

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Speaker 3: to account.

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Speaker 2: Simon Casey says, while BP hasn't named a long term successor,

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Speaker 2: it typically picks CEO from among the ranks of its

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Speaker 2: own top executives.

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Speaker 1: The European Central Bank expects inflation in the Bloc to

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Speaker 1: remain above three percent next year. That's according to a

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Speaker 1: report from Vouters that scene as bolstering the case for

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Speaker 1: a rate rise at tomorrow's meeting. Elsewhere, European Commission President

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Speaker 1: sulvon DeLine is set to give her annual State of

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Speaker 1: the European Union speech later. Ploomberg's meyor Todeo has a preview.

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Speaker 4: The head of the European Commissioner sort of underline, is

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Speaker 4: said to unveil her State of the Union speech at

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Speaker 4: the European Parliament in Strasbourg. Leader today, this is the

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Speaker 4: big political speech of Laurentree. It signals we're back from

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Speaker 4: the summer break, the European Parliament is officially back in

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Speaker 4: session and it outlines the policy priorities of the European Commission.

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Speaker 4: In theory This could be the final one from Ursula Funderlion,

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Speaker 4: as her term will be over next year when the

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Speaker 4: European elections are due. Across the block, haven't said that

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Speaker 4: there is widespread speculation in Brussels that you will aim

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Speaker 4: to get a second term.

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Speaker 3: Now.

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Speaker 4: When it comes to the content, not a lot has leaked,

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Speaker 4: but we should expect multiple references to Ukraine and bring

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Speaker 4: in Ukraine closer to the European Union. In Brussels, Maria

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Speaker 4: today bloomber Radio.

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Speaker 2: Apple has launched a range of upgraded iPhones and raised

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Speaker 2: the price of their top end handset by almost ten percent.

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Speaker 2: The new models, which include a USBC connector, represent the

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Speaker 2: first significant iPhone overhaul since the five G phones came

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Speaker 2: out three years ago. Apple CEO Tim Cook says it's

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Speaker 2: all about making steady improvements to the product.

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Speaker 5: Since the very first iPhone, we focused on giving our

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Speaker 5: users a device that's incredible powerful, remarkably easy to use,

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Speaker 5: and beautifully designed. Every year, we've built on this foundation

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Speaker 5: to create experiences that make a real difference in our users'

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Speaker 5: daily lives. Today, we're pushing what users love about iPhone

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Speaker 5: even further.

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Speaker 2: Tim Cook's latest product launch comes as the Apple CEO

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Speaker 2: is looking to pull out of a sales slump and

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Speaker 2: fears of a consumer backlash in China.

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Speaker 1: Storms and flooding in eastern Libya are thought to have

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Speaker 1: claimed more than twoy three hundred lives, with thousands more missing.

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Speaker 1: A search for survivors is underway after a Mediterranean storm

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Speaker 1: hit the city of Dirna, with dams collapsing, triggering floods.

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Speaker 1: High water levels, but also tumultuous politics are hindering rescue efforts.

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Speaker 1: Rami L. Shahabi, from the World Health Organization in Libya

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Speaker 1: says it's a disaster zone.

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Speaker 6: The situation is more disasters than we expected and the

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Speaker 6: keep binding up, so those who have not been reported

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Speaker 6: as found are considered very likely to be dead or

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Speaker 6: under the rubbles of those building that collapsed after the flood.

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Speaker 1: Meanwhile, the Red Cross says that more than ten thousand

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Speaker 1: people are still missing after the massive floods.

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Speaker 2: Double Line Capital CEO Jeffrey Gundlack is fired back at

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Speaker 2: retired bond king Bill Gross, saying he hopes he feels

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Speaker 2: better about himself. The ongoing feud in the world of

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Speaker 2: finance returned after Gross criticized Gundlack saying he wasn't anywhere

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Speaker 2: near being crowned a bond king.

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Speaker 7: To be a bond king, or Quinn, you need a kingdom,

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Speaker 7: you need a kingdom. Okay, Pimco had two trillion dollars. Okay,

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Speaker 7: Double Lines got like fifty five billion. That's no kingdom.

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Speaker 7: That's like Latvia for car Estonia. Then look at his

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Speaker 7: record for the last five six seven years, had a

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Speaker 7: sixtieth percentile smack of a b.

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Speaker 2: That doesn't how's Bill gross there? Speaking to Boomberg's Odd

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Speaker 2: Lots podcast, in response, gond Black says, quote, it's sad

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Speaker 2: for somebody who's been out of the business for ten

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Speaker 2: years and is still trying to exercise the demons. I

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Speaker 2: hope he's doing fine.

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Speaker 1: Barkley's CEO, Csven Katakrishnan sees a deal making revival on

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Speaker 1: the way. The UK bank boss says that prices are

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Speaker 1: reaching acceptable levels and investors have plenty to spend. The outlook, though,

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Speaker 1: contrasts with news elsewhere in the sector. So Deutsche Bank

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Speaker 1: says that it's decommissioned sixty percent of the underlying applications

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Speaker 1: that the firm uses to run it's fixing come trading

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Speaker 1: business as it tries to reign in costs. The German

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Speaker 1: lender has been struggling to contain expenses in recent quarters

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Speaker 1: as it wrestles with inflation, a botched IT overhaul, and

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Speaker 1: also an ongoing processes issue.

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Speaker 2: And China's biggest cities have been home to one of

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Speaker 2: the world's greatest economic success stories, but that trend now

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Speaker 2: appears to be coming to a halt. According to d

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Speaker 2: compiled by Bloomberg, starting salaries or falling in finance and

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Speaker 2: technology by as much as forty percent downwards, bial Leese

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Speaker 2: workers cutting back further on spending as Beijing tries to

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Speaker 2: restore confidence in the economy. Another story of the Commaro

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Speaker 2: this morning is an interesting one. When we think about

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Speaker 2: the challenges facing particularly European countries and their aging demographics,

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Speaker 2: we talk about it a lot, particularly the conversations are

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Speaker 2: having about the pension's triple lock at the moment and

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Speaker 2: how much that's going to cost the government, But a

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Speaker 2: study by the chief forecaster at the UK's Office for

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Speaker 2: Budget Responsibility actually says that shrinking populations could be good

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Speaker 2: for people in the world's richest countries, saying that the

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Speaker 2: economic impacts are likely unbalanced to be positive and predictions

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Speaker 2: of dire effects are implausible.

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Speaker 1: Yeah, this is David Miles, you know, he's a well

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Speaker 1: known voicer in the UK. I think is absolutely fascinating

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Speaker 1: because of the pressure that countries like Germany, Italy and

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Speaker 1: increasingly the UK are under, but also further afield places

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Speaker 1: like Japan. We're hearing increasingly policies around demographics, around population,

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Speaker 1: and it's less about immigration than that is about birds.

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Speaker 1: I think the issue though, with what David Miles is saying,

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Speaker 1: it's the punitive childcare cost, the expense of raising children. Actually,

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Speaker 1: that is the counterbalance to this. The reason that people

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Speaker 1: might be better off is that it's just so expensive

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Speaker 1: to have children, which I'm not sure is a particularly

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Speaker 1: positive message.

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Speaker 7: Frankly.

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Speaker 2: One of the things I aquaate from this is the

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Speaker 2: paper is published in the Journal of the Economics of Aging,

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Speaker 2: which I don't have a subscription to, but I'm now

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Speaker 2: already tempted to take.

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Speaker 1: It absolutely Okay. One of the stories on the terminal

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Speaker 1: that caught our attention when it comes to UK news, right,

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Speaker 1: should we have a think about Apple unveiling its four

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Speaker 1: new iPhone models and a one hundred dollars price increase

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Speaker 1: for the top of the range fifteen promax. It comes

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Speaker 1: to as the company's trying to pull out of a

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Speaker 1: sales slub in the Chinese market. For more, let's speak

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Speaker 1: to our chief correspondent, Mark German. Good morning Mark. First

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Speaker 1: of all, on the products themselves, how significant actually was

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Speaker 1: this upgrade to the iPhone in the end.

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Speaker 8: Thank you so much for having me. Glad to be

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Speaker 8: here on our UK programming. The iPhone update was quite significant.

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Speaker 8: If you're coming from a model, let's say, an iPhone

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Speaker 8: thirteen or an iPhone twelve or earlier. I think the

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Speaker 8: iPhone fifteen pro brings over some various significant improvements. I think,

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Speaker 8: you know, from a consumer perspective, what you can see

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Speaker 8: is new is new, and that's what sells, right. Other

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Speaker 8: than the upgrades that you know bring faster processors, the

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Speaker 8: visual upgrades are really significant, and so I think the

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Speaker 8: new titanium construction, along with the new color options you

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Speaker 8: have for these iPhone fifteen prone promaxes, is going to

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Speaker 8: drive a lot of sales overall. If you, you know,

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Speaker 8: compare the whole package to this iPhone fourteen iPhone fifteen

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Speaker 8: compared to maybe some upgrades in the past maybe to

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Speaker 8: the iPhone twelve or maybe to the iPhone ten. It's

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Speaker 8: not as significant, but I still think they needed to

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Speaker 8: They do what they needed to do to have a

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Speaker 8: successful holiday quarter.

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Speaker 2: Look, all of this is coming at the backdrop of

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Speaker 2: a slowing smartphone market.

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Speaker 7: Mark.

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Speaker 2: You've been at the forefront of so many big stories

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Speaker 2: around Apple that Bloomberg has broken. How is the company

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Speaker 2: coping with its strategy to try and boost growth at

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Speaker 2: a time that, you know, the overall market doesn't look

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Speaker 2: so good.

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Speaker 8: You know, it's interesting they're not trying to push you know,

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Speaker 8: unit sale increases. If they were, they'd be cutting prices instead.

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Speaker 8: They're doings, are trying to find new ways to generate

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Speaker 8: additional revenue. You've seen a few levers that they pulled

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Speaker 8: today in some countries. The iPhone fifteen pro is quite

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Speaker 8: a bit more expensive than it is in than the

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Speaker 8: iPhone fourteen Pro was. There's new iCloud storage tiers which

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Speaker 8: could help some services revenue that the tiers net up

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Speaker 8: to sixty dollars US per month. The previous tier cap

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Speaker 8: at ten dollars per month for a two terrorbyte package.

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Speaker 8: Now it goes up to twelve terrabytes, which is more

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Speaker 8: stores than probably anybody needs for two and a half lifetimes.

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Speaker 8: And they're also going to be making some new revenue

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Speaker 8: on some of these USBC accessories. But one point I

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Speaker 8: want to make, because I know we have a UK

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Speaker 8: audience here, is that the UK is unique today for

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Speaker 8: a very key reason. There was actually no price increase

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Speaker 8: in the UK. In fact, the new iPhones are cheaper

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Speaker 8: in the UK than they were previously, coming down by

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Speaker 8: about one hundred dollars, coming down by about one hundred pounds,

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Speaker 8: which corresponds to about one hundred and twenty eight dollars US.

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Speaker 8: So if you're in the UK, you might be getting

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Speaker 8: a better deal than you did last year.

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Speaker 1: Ooh, okay, music to people's ears, I imagine if they

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Speaker 1: are fans. How serious though, I mean, looking at country

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Speaker 1: by country are the troubles in China? Then there are

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Speaker 1: all these fears around a government backlash, but then also

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Speaker 1: a potential consumer backlash against Apple.

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Speaker 8: You know, I personally think that Apple's going to be

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Speaker 8: okay in China. My concern for them is a sense

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Speaker 8: of nationalism. The new Wellaway phone is having a very

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Speaker 8: strong reception in China, but I think the titanium casing

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Speaker 8: the premium feel of these new phones is going to

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Speaker 8: do well in China. One thing Apple did not do

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Speaker 8: this time around was released a red iPhone or a

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Speaker 8: gold iPhone. Those are two incredibly popular colors in China.

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Speaker 8: I think if you see iPhone sales a bit sluggish

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Speaker 8: in China, that's going to be one contributing factor. And

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Speaker 8: Apple may roll around and try to put out a

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Speaker 8: red or gold phone in the spring, maybe in the

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Speaker 8: March April time frame next year. But at this point

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Speaker 8: I'm not anticipating a big dip in China, at least

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Speaker 8: this quarter. I think this is an issue that might

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Speaker 8: perpetuate in the coming quarter. So that's something we're keeping

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Speaker 8: an eye on. But it's quite honestly impossible to know

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Speaker 8: until we see sales. I mean, clearly the initial noise

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Speaker 8: on the ground there is not coming in the positive direction.

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Speaker 8: But this does not seem anywhere near his diar as

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Speaker 8: it did four years ago when a huge nationalism push

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Speaker 8: really inspired people to not buy iPhones and other products

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Speaker 8: in the numbers they did previously.

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Speaker 2: Mark, great to have you on the program. You're welcome anytime.

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Speaker 2: That's Mark go and our chief correspondent they're bringing us

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Speaker 2: the latest on those product launchers from Apple.

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Speaker 1: Now I want to turn to a big story in

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Speaker 1: the Middle East. So after coming together in twenty fifteen

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Speaker 1: to wage war against the Iran backed Houthi rebels in Yemen,

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Speaker 1: Saudi Arabia and the United Arab Emirates and now immerse

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Speaker 1: in a power struggle through local proxy forces. Now this

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Speaker 1: threatens to undermine US and international efforts to try to

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Speaker 1: bring peace to a country that has been racked by

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Speaker 1: conflict and poverty. Blue mag Saudi Arabia reporter Sam Dagga

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Speaker 1: joins US now for more. Sam, very good to have

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Speaker 1: you on the program. Good morning, and for your reporting

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Speaker 1: what is going on in Yemen At the moment, I

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Speaker 1: thought that actually the fighting had been reduced somewhat.

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Speaker 9: Thank you, yester, morning and great to be with you. Yes,

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Speaker 9: I mean there's been a aul truth since April twenty

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Speaker 9: twenty two. But what's going on at the moment is

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Speaker 9: the Saudi Is, particularly Saudi Arabia, is trying to have

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Speaker 9: a ceasefire agreement between the Yemeny factions, and in order

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Speaker 9: to achieve that, it is negotiating directly with the Iran

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Speaker 9: backed Hoothies right, and it's trying. Saudi Arabia is trying

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Speaker 9: to cast itself as a mediator, but of course it's

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Speaker 9: an it's a it's a part of this war. I mean,

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Speaker 9: it waged war on them in twenty fifteen, and the

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Speaker 9: Houthis are saying to Saudi Arabia, we need we need

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Speaker 9: you to pay war reparations. You're not a mediator, You're

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Speaker 9: a party to this conflict. And we also need a

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Speaker 9: share of the oil and gas resources of the country.

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Speaker 9: And they're even threatening to target Saudi Arabia again, I

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Speaker 9: mean as as recently as Sunday. And then you have

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Speaker 9: Yemeny factions that are backed by the United Arab Emirates

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Speaker 9: that are saying, we are being kept in the dark

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Speaker 9: in all of this. You're not telling us Saudi Arabia

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Speaker 9: what you're doing. You know how you're negotiating with the Houthis,

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Speaker 9: and we feel that you're going to make too many

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Speaker 9: concessions to them and they're going to emerge stronger out

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Speaker 9: of this.

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Speaker 2: What are then the interest of Saudi Arabia and the

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Speaker 2: UAE in Yemen, great.

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Speaker 9: Question, I mean Saudi Arabia is primarily interested in you

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Speaker 9: know extricating itself from a disastrous war. I mean, this

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Speaker 9: is a war that it started in uh you know,

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Speaker 9: in concert with its allies, and the US supported this effort,

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Speaker 9: and but you know, a campaign of air strikes and

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Speaker 9: economic blockade, you know, failed to dislaunch the Houthis, who

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Speaker 9: now control the northern part of Themmen, including the capital Sana.

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Speaker 9: And the war started also to impact Saudi Arabia itself.

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Speaker 9: I mean, hundreds of drug oons and myththiles were fired

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Speaker 9: by the Houthis at vital oil and security installations inside

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Speaker 9: of Saudi Arabia. So it really wants to end the war,

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Speaker 9: bring it, bring it to an end at any cost,

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Speaker 9: and focus on its vision twenty thirty for economic transformation.

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Speaker 9: And it also wants to keep Yemen intact. It shares

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Speaker 9: a long border with Yemen, and the UAE, on the

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Speaker 9: other hand, has a different agenda. It feels like it

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Speaker 9: really expended blood and treasure in Yemen and it wants

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Speaker 9: to have, you know, maintain control over the coast of Yemen,

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Speaker 9: which has some very key ports like Aden and Al Mukalla.

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Speaker 9: And that's key to the UAE's ambition to bolster its

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Speaker 9: position as a trade and maritime power in the region.

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Speaker 2: This is Bloomberg Daybreak Europe, your morning brief on the

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Speaker 2: stories making news from London to Wall Streets and beyond.

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Speaker 1: I'm Caroline Hepka and.

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Speaker 2: I'm Stephen Carol. Join us again tomorrow morning for all

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