Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
We begin in Detroit with the latest on a possible auto workers strike. Even a brief work stoppage could cost the US economy billions. Bloomberg's Ed Cory has the latest on the negotiations from Detroit.
The UAW was asking for a forty percent raise for its members, sources tell Bloomberg gets lowered that demand slightly, asking for a series of increases over nearly five years that would start with an eighteen percent boost, then alternating between five and four percent. But automakers say that would boost labor costs so high it would threaten their viability. General motors Ford and Stilantis are facing a contracted deadline just before midnight Thursday for nearly one hundred and fifty
thousand US hourly workers in Detroit. Ed Corey Bloomberg Radio Okay.
Ed, thank you, And if no deal is reached by this Thursday, could cut US GDP by five point six billion dollars and push the Michigan economy into a recession.
That's according to Anderson Economic Group.
Meanwhile, in Silicon Valley this morning, Nathan. Apple will on veil it's new iPhone fifteen Pro today, and it comes at a critical time for the tech giant as it aims to pull out of a smartphone sales slump. Bloomberg Chief Tech correspond if Mark German tells us what else we could expect today.
You'll see four new iPhone fifteen models, too low and too high end, both in the same six point one inch and six point seven in screen sizes. You'll see a new titanium design for the iPhone fifteen Prome promacs. You'll see on those higher end phones, a better battery life, a lighter frame in the A seventeen chip built on the new three and Animeter production process, so a little leg up on what China's got in their new Wallwey devices.
The Apple Watch upgrades will be very minor. And then on the AirPods, you'll see a move to USBC that new charging standard, which is also going to be present on all four new iPhone models.
And that's Bloomberg's Mark German, who says Apple is also contending with rising pressure in China due to a government worker iPhone ban, and.
We have more news out of Apple ahead of the product launch, Karen Bloomberg News is learning for the first time the iPhone maker plans to make in India built iPhone fifteen available in the South Asian country at the unveiling later today. The entire event kicks off at Apple's Coopertino headquarters at one pm Wall Street time.
Well.
Also in the tech space, Nathan, the appetite for all things ships continues to grow, as we're seeing with the initial public offering of Armholdings. The IPO for ARM is oversubscribed ten times and sources a banker's plan to stop taking orders by this afternoon, but still plans to price it shares tomorrow. Bloomberg Markets editor Eddie vanderwald says the decision to close bugs early suggests demand for the chip designer is strong.
I think that this is a real test case for investor demand for broader tech and for the AI story. And at the moment, looking just at how the IPO seems to be going off, it looks like it is, you know, very strong still despite rising interest rate.
Now no, it's Bloomberg's Eddie vanderwaldt who says ARM stock offering is set to get under way later this week.
All right, sticking in the tech sec to return to Elon Musk Karen. A new biography shows the world's richest man often ignored please to stop alienating advertisers. The new biography from Walter Isaacson states the billionaire owner of X formerly Twitter, has a string of wealthy advisors he habitually ignores. One of those, Warner brothers had David Zaslov caution Musk about his self destructive behaviors that were spooking advertisers.
According to Isaacson's book.
The news follows yesterday's pop in Tesla stocket jumped ten percent after Morgan Stanley said the company's Dojo supercomputer could boost Tesla's value by to five hundred billion dollars. Checking shares of the Elon Musk owned ev maker right now, they are down about four tenths of one percent.
Meanwhile, Nathan Oversees This morning, shares of Chinese property giant Country Garden rallied after Reuters reported that a stressed developer wont approval from creditors to extend repayment on six YU one bonds by three years. Sources say the deadline for votes on twoabate securities will be pushed back into later Tuesday. Country Garden has so far void a defaulting, but recently Warren still could after posting a record first half loss of almost seven billion dollars.
Also happening overseas this morning, Karen, Russian President Vladimir Putin prepares to meet with Kim Jong un. The luxury armored train of the North Korean leader crossed into Russian territory earlier today. State media in North Korea and Russia say the two would meet, but no official schedules been released.
The meeting offers a chance for Putin to obtain weapons to fuel his war in Ukraine, and Kim a chance to win assistance for his beleaguered economy so as to expand his ability to deliver a nuclear strike.
Well on the bank sector, Nathan, we're hearing scathing criticism of regulators from Jamie Diamond, the JP, Morgan Sherman and CEO took aim at higher capital requirement's US regulators proposed for the banking industry, saying he would love to know what they really want to accomplish.
The Federal Reserve humility. They're the ones that told the world rach On going up, and it wasn't the Federal Reserve in general, is each one of them independently factors each central bank, so ify with them might have a little more humility oversto like this, JP.
Morgan, CEO Jamie Diamond made the comments at the Barclays Global Financial Services Conference in New York. He's repeatedly called the proposal hugely disappointing and I mean and.
I've tacking COVID cases, Karen, We're getting closer to a new vaccination. Bloomberg's head Baxter has that.
The FDA has approved the Pfizer and Moderna vaccines as there's a tick up and late summer surge of the virus. Peter Marks of the FDA says the public can be assured that the update vaccines are safe now. It should be noted these are not boosters. They're updated vaccines that protect against the new variants, better approved for ages twelve and up. The CDC is supposed to meet today to possibly issue guidance. I'm at Baxter Bloomberg Radio.
Time Now to take a look at some of the other stories making news around the world.
With that, we're joined by Bloomberg's Michael Barr.
Good morning, Michael, Good morning, Nathan escape Pennsylvania convict and Nello cambal Conte is still on the loose and now believed armed. It's been about two weeks after he was able to breach the police perimeter in Chester County. Authority say Cavalcante managed to steal a van all to his appearance and drive nearly twenty miles north over the weekend. Deputy US Marshal Robert Clark.
We expect to catch him as soon as soon as possible, but we're not going to put our ducks in a row and say, hey, we're going to have him by this Thursday. We're going to plan for a long investigation because we don't want to get caught planning for an immediate arrest and then we're not prepared later down the line.
Marshall Robert Clark says a homeowner shot at a subject recently that matched the description of cavil contact. Lawyers for Donald Trump have asked the federal judge presiding over his election subversion case in Washington to recuse herself. They say Judge Tanya Chutkins past public statements about the former president and his connection to the January sixth riot at the US Capitol call into question whether she can be fair.
It has been twenty two years since nearly three thousand people were killed during the September eleventh attacks in New York. At the memorial where the World Trade Center once stood, the names of the victims are read aloud and bells told, marking the moments that the hijacked airplanes hit the Twin Towers, the Pentagon, and a field in Shanksville, Pennsylvania. This girl honored the memory of her grandfather and.
My grandfather, Edward Joseph, Papa, Grandpaetti. Even though I never got to meet you, I feel like I've known you forever from stories and videos and pictures. It's almost as if you're still here.
Mourners also offered thanks to the first responders. A new study suggests the dangers of lead exposure have been gravely underestimated. According to the World Bank, exposure to lead in twenty nineteen may have cost five and a half million deaths worldwide from cardiovascular disease and IQs in children under five. Pure Earth President Richard Fuller worked with the World Bank on the study.
When they look at all of the different aspects of cardiovascular disease, lead poisoning is just the globally as smoking or cholesterol.
Most of the effects were found in items like cookwear made from recycled materials or lad glazed pottery. The study is published in the Lanced Planetary Health journal. Global News twenty four hours a day, powered by more than twenty seven hundred journalist and analysts in over one hundred and twenty countries. I'm Michael Barr. This is Bloomberg Nag.
Thank you, Michael.
Time for the Bloomberg Sports Update. Here's John Stanshower to day.
To the night where Jets fans emotions went from agony to ecstasy. The much hype Jets debut of Aaron Rodgers
lasted all of four snaps. He threw one pass, he got sacked on his leg, he left the game, and by all accounts, he's not coming back this season, a bitterly cruel blow after so much excitement surrounding Rodgers' arrival, and left the Jets once again with Zach Wilson, and he threw a bad first half interception, but he played better second half through a touchdown pass that Jets rallied from ten down against the Bill.
The game went to overtime.
Getting away a line drive kick of Sam Martin.
Gibson runs under it after.
Ten thirty five, starts to his left, gets to the forty, turns the cornum.
Cut the forty five dixton cluck is it fun?
Not the forties?
Not the Bills?
Thirty hits out the twenties.
Stunt a step to the ten to the five touchdown.
Hut touchdown, This game is over.
ESPN New York to call the Xavier Gibbson sixty five yard return.
The Jets stunned the Bills twenty two to sixteen. Tommy Famm won.
Several Mets traded at the deadline back at City Field with Arizona had a single double, a game time home run. Diamondbacks scored in the ninth top the Mets four to three. Yankees and Red Sox reigned out in Boston doubleheader. Today, BIGS series help decide who gets the last wildcard of the America Lague. Texas won ten for at Toronto. The Jays lead by a half game. The NBA will vote today on whether to start finding teams who rest their stars in national TV games. Lebron James Antony wants to
play the Olympics next summer in Paris. Calling it his last dance, and he has said to be recruiting Kevin Durant and Steph Curry.
The US just.
Finished fourth at the World Cup. John Stashedward Bloomberg Sports.
From coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on SYRIASXAM, the Bloomberg Business app, and Bloomberg dot Com.
This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.
We are counting down to Apple's latest product launch later today in Coopertino, California. The iPhone maker has been dealing with several negative headlines ahead of it, from China's crackdown on iPhones for government workers to delays for in house chips. So will a next generation iPhone be enough to give Apple more of a lift as we head into the holiday quarter. Let's bring in Alex Webb, who covers the
tech industry for US here on Bloomberg Radio. Well, Alex, we did get the headline moments ago that made in India iPhones are going to be available on this launch day.
That seems like it could be a big deal.
Certainly an interesting narrative for them to be pushing isn't it the You know, there's been gradual pressure over time on the Chinese supply chain, of course, and Apple has been doing a huge amount to try to de risk its exposure there, so they've been expanding the production capabilities in India. That also helps them in the Indian market because if you want to have your own retail outlets there, you need to be manufacturing domestically, and it is a
market where they see huge amount of potential. But let's put that in little bit of context. Right in the most recent data we have from March trailing twelve month revenue is about six billion dollars in India. In China right now, Apple has in the order of Greater China, which also gives Taiwan has an eure of seventy four billion dollars in revenue, So India has a long way
to catch up. The iPhones that are going to be on sale made in India in the next generation, only a small portion of them will be coming from that market. The vast majority will still be made in China. So it is a change, it isn't It isn't a sea change just yet.
Do you expect it to be a sea change at some point, given some of the headwinds that Apple is facing in China right now, it.
Could well be. But that time is not a year away or two years away. It is five to ten years away, right. It takes a long time to build up your supply chain. China has got not just the factories to make the iPhones, it has the factories that make the components that supply the iPhones. It has you know, the ability to mobilize millions of people to work in these factories at peak production season. That is not somewhere
that India has got to yet. You know, if you go to Shanzhen, you can see in that just in that you know, remarkable city, the how everything is there. Everything you need to make a smartphone pretty much is there, with the exception of the top of the line chips that the US is making it high to import. So, you know, Tim Cook has talked about India being at an inflection point.
That's you know, slightly empty language.
Because China was at six billion in revenue about fifteen years ago, right so after that point it did massively accelerate.
A lot needs to happen in India for it to get to that point.
Well, what does it tell you, Alex, that Apple is leaking out this kind of news about the supply chain and about the sourcing of next generation iPhones as the big the big thing for us to latch onto, as opposed to something along the lines of vision pro or details about what the next iPhone's going to have in it.
Well, I'm going to push back on that thinking because it's I think you give our colleagues in India some credit for breaking this story. It's not necessarily a handout from the Apple pr machine that there's probably a good deal reporting in there, which sure, you know, we don't know that this is something that Apple wanted to push. It is something that our colleagues have reported from their sources.
So if they mention it, right, I think it's highly unlikely they will because if you you know, they don't like to advertise on their devices that they are not necessarily made in the US. But if they were to mention it somehow in the course of the presentation, that would be remarkable.
But that's not the message we have just yet.
Well, I guess what I'm getting at, Alex is are we expecting any more surprises from Apple in terms of what the components of the devices are going to be you know what make what helps the iPhone fifteen stand out from past iterations of this device?
We got about a minute left.
I mean, being Frank's probably not a huge amount that's going to stand out from previous versions. The thing that's interesting is little stuffer around the edges, and it actually the edge is very much one thing, a thinner bezel at the end edge of the phone. And also the pro lineup is going to be made out of titanium, not out of steel. That should let them push a higher price point of pricing is crucial. Right now, they're not selling as many units, or the pace of growth
in unit sales as massively slow. They're therefore trying to squeeze more money out of the units they do sell. New materials help them achieve that.
Do you think this product launch is going to be enough to give Apple a boost heading into the holiday quarter.
I'm going to certainly give it a boost. Right this is the biggest quarter for them. Every time, the question is is it above and beyond expectations? You'll hear all sorts of back and forth or their cutting production that Ultimately the fact is because the services business has been so good, people keep buying their new iPhones, and particularly feel freshening at the high end, where there's less price sensitivity that tends to support the grocery.
Actually, this is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond.
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I'm Nathan Hager and.
I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak