October 31, 2025 • 16 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) Apple blamed a surprise decline in China revenue on supply disruptions, predicting it will return to growth in the world’s biggest smartphone arena as the iPhone 17 gains momentum.
(2) Amazon’s cloud unit posted the strongest growth rate in almost three years, reassuring investors who were concerned that the largest seller of rented computing power was losing ground to rivals.
(3) Chinese leader Xi Jinping warned against “breaking supply chains,” in his first public remarks after a landmark meeting with US President Donald Trump that secured a one-year truce in the world’s biggest trade fight.
(4) King Charles III on Thursday stripped his disgraced brother Prince Andrew of his remaining titles and evicted him from his royal residence after weeks of pressure to act over his relationship with sex offender Jeffrey Epstein, Buckingham Palace said.
(5) In more than one way, Rob Jetten, the head of the liberal D66 party who might become the next Dutch prime minister, offers a stark contrast to Geert Wilders, the divisive anti-migrant lawmaker who heads the far-right Freedom Party.
(6) Shares of the world’s top listed beer, wine and spirits makers have shed a combined $830 billion in a little more than four years as the industry grapples with monumental change.
Russia’s tactics and hardware in Ukraine, its growing cooperation with China in the Bering Strait, shifts in activity off Norway, and the persistent challenge of the shadow fleet all reinforce his concerns of a looming threat that Denmark and its allies must prepare to confront.
Podcast Conversation: Don't Have a Cow Over the Steak Economy
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news. They say it's the
Bloomberg Daybreak Europe podcast. Good morning, It's Friday, the thirty
first of October. I'm Stephen Carroll in London. Coming up today.
Strong earnings from Amazon and Apple boost stock market sentiment
after a brief pause in the global equity rally, King
(00:25):
Charles begins the formal process of removing his brother Andrew's
royal title. Plus, with NATO's Arctic footprint expanding, Denmark is
raising its military commitment to Greenland. Let's start with a
roundup of our top stories. Apple is predicting a surge
in sales in the last three months of the year
from its new iPhones. The tech giant is now expecting
(00:46):
revenues to rise by up to twelve percent over the quarter.
Speaker 2 (00:49):
The forecast is double what.
Speaker 1 (00:51):
Analysts had expected and comes after Apple reported increases in
sales and earnings per share the beat estimates in the
three months to the end of September. That's despite revenue
he is falling almost four percent in China and taris
costing the company over one billion dollars. Nobila Popol is
Senior director for Data and Analytics at IDC, Apple.
Speaker 3 (01:10):
Still maintains a really dominant share of the premium market
and that you know, they haven't lost hold of that.
Of course, certainly competitors are coming up, but I think
the biggest competition that Apple sees is certainly in China,
but overall globally, we see really strong growth in the
segment that Apple plays, which is their premium and they've
maintained that ESCBC, you know, year over your ASP growth
(01:34):
in iPhone, and I think this is what is going
to help drive especially next year.
Speaker 1 (01:38):
Nobilia Popo from IDC speaking there. These results included roughly
two weeks of iPhone seventeen sales, with initial demand appearing strong.
Shares an Apple rows by two point three percent in
after hours trading. I Meanwhile, Amazon's cloud deners posted the
strongest growth right in almost three years. Amazon Web Services
reported third quarter revenue of thirty three billion dollars, twenty
(02:00):
percent from a year earlier and above the average estimate.
The results eased investor concerns that Amazon was over spending
on AI, which shares rising thirteen percent postmarket. Overall sales
rose by thirteen percent to over one hundred and eighty
billion dollars and Amazon expects its shopping chatbot Rufus will
help deliver an additional ten billion dollars in annual sales.
(02:24):
China's president hu Jinping has warned against breaking supply chains
in his first public remarks since meeting US President Donald Trump.
In the speech to other world leaders at the APEX summit,
she called for multilateralism and collaboration. MEMBERTVS Avon Man is
at the summit in South Korea.
Speaker 2 (02:41):
The message in.
Speaker 4 (02:42):
That speech was, China is a defender of the global
trading system at a time when America is sin of
America first policy. We have seen both sides. I commit
to at least bringing down the temperature for at least
another year. Right that one year, true, certainly is longer
than the usual ninety days that we've seen these sort
of truces last. So we are seeing here at least
(03:04):
some daytime. The question is, of course, how long.
Speaker 1 (03:07):
It's quite a lad Man adds that key questions remain
about how the trade truce reached between the two countries
is going to be enforced. The climbed down intentions comes
as China's factory activity slump worsened at October, reaching its
longest decline in more than nine years. Britain's Prince Andrew
has been stripped of his titles and evicted from his
(03:27):
royal residence after a scrutiny of his relationship with sex
offender Jeffrey Epstein. According to a statement from Buckingham Palace,
the King's brother will be known as Andrew Mountbatten Windsor
as a formal procedure begins to remove his honors. Royal
historian George Gross from King's College, London says the scandal
puts the monarchy in a challenging position.
Speaker 5 (03:47):
The royal family remains key parts of charitabul organizations working
on domestic sexual abuse, all of that kind of thing,
so for for him to have that and this in
the background must be impossibly difficult. And also the public
(04:09):
disquiet was very significant on this.
Speaker 1 (04:12):
That's where was the story in George Gross now. The
move follows the publication of a posthumous memoir by one
of Epstein's victims, of Virginia, Roberts Giuffrey, containing allegations against Andrew.
In the Netherlands, the centris D sixty six party looks
said to lead the formation of the next government, with
ninety eight percent of votes counted. D sixty six is
(04:33):
projected to take twenty six seats in the one hundred
and fifty seat parliament. Hitfielder's Far Out Freedom Party is
expected to get the same number of seats, but its
isolation in parliament means it won't have a role in government.
That paves the way for D sixty six leader rob
Yetten to become the next prime minister if he succeeds
in reaching a coalition deal. Senior economist at abn Amrobank
(04:56):
Jan Paul vander Kirk spoke to Bloomberg about what the
result could mean for the Dutch economy.
Speaker 6 (05:01):
That'll be a good thing for the neelins. I think
we have an economy which has performed quite well, outperforms
European peers. But this constraints domestically quite a bit. So
a more pragmatic government which can give some policy certainty
in the face of international policy uncertainty would be very
much welcomed, at least domestically, but also for companies.
Speaker 1 (05:21):
Senior ecluomists to Adab A Mamroe Bank, Jan Pol devander
kirkha there speaking to Bloomberg as Robbie Atam's cabinet could
offer a stark contrast to Hertfielders premiership, and the world's
major alcohol makers have lost nearly half their value since
twenty twenty one, a total of eight hundred and thirty
billion dollars. A Bloomberg index of the beverage market shows
(05:42):
how beer, wine and spirit makers have been left out
of the global equity rally. James Wilcock has more the
hit alcohol.
Speaker 7 (05:51):
Consumption is four times the size of what happened after
the two thousand and eight financial crash. That's how one
analyst describe the shift to Bloomberg and why men in
the sector think it's a structural change. There are all
sorts of reasons. The COVID pandemic sparked, health concerned, weight loss, drugs,
celebrities going teetotal. Tariffs and inflation have taken a toll.
(06:15):
But the crunch is severe and it has led to
job cuts and corporate restructuring as the industry tries to
recover from its hangover in London.
Speaker 2 (06:24):
James Wilcock, Bloomberg.
Speaker 1 (06:25):
Radio, those are your top stories on the markets. The
MSCI Asia Pacific Index is trading slightly higher this morning.
The NICKA and Tokyo, though hit a record high earlier,
currently up by one point nine percent. The hangs hang
in Hong Kong's down by one percent, European stock futures
pointing two tens three tents lower. In fact, for eurostocks,
fifty futures and Nasdaq futures one point one percent higher
(06:47):
after those results from Apple and Amazon, SMP minis are
uped by six tenths of one percent on Wall Street
as well well.
Speaker 2 (06:53):
In a moment, we'll bring you more on.
Speaker 1 (06:55):
Those big tech results, plus a special report from the
Arctic Circle and efforts being made to beef up defenses
in Greenland. But speaking of beef, there's another story that
I've been reading this morning, and it's from our opinion
columns to Howard swayu Wan, who's been writing about the
rising price of beef and how it means that people
are having to pay more for their premium stakes in
(07:15):
restaurants around the world. He's been looking, for example, at
the ten percent rise that we've seen in prices in
London and looking at the underlying causes, including the shortage
of beef farmers. How it's in a profession that's not
attracting that many more people to it. One of the
people he spoke to said that the number of beef
farmers under the age of thirty five is two percent.
Speaker 2 (07:35):
It's also particularly valuable.
Speaker 1 (07:36):
It's got prestige attached to it as well, and he
says that'll continue because you'll get the likes of you know,
tech bros and their finance buddies staying with those restaurants,
even if prices do go up. All of it's a
great read, but actually the part of the struck me
most is Horod's defense of him seeing some of the
big global economic trends through the prism.
Speaker 2 (07:57):
Of food and eating out.
Speaker 1 (07:59):
He writes, the restaurants and food may seem anchored in
cultural and social trends, but they are entry points to
business ideas and economic processes markets like armies marched on
their stomachs, and I couldn't agree more. I'd also add
that Howard does this with a sort of insightful touch
that always leaves you with an appetite for more as well.
You can read his piece at Bloomberg dot com slash opinion,
and we'll put a link to it in our podcast
(08:20):
show notes. Let's bring you more details now on some
of those big tech earnings, Apple predicting a big sales
boost from its newest iPhone in the coming months after
some disappointing numbers from their Chinese businesses. Let's bring in
our tech outure of LAD'SAVAF for more on this. VLAD
investors seemed pretty pleased overall with this update from Apple,
shares rising and after hours trading. Is this all just
(08:41):
excitement about the new iPhone?
Speaker 8 (08:43):
Yeah?
Speaker 9 (08:44):
The iPhone is always going to be the defining product
for Apple's lineup overall, and honestly, the story with it
is very positive. The September quarter was challenged by supply
chain disruptions, CEO Tim Cook said, and he insisted based
growth for the current quarter, and the third party data
that we have been able to get hold of indicates
the same thing. The fhone seventeen generation has been very
(09:06):
well received. It's a redesign, it's an upgrade, especially for
the base model, the most affordable model, and that has
resonated with people both in the US and China, the
two biggest markets.
Speaker 1 (09:17):
Not that I went looking for downsides and these numbers
of LAD, but how much of a concern is the
weakness in China?
Speaker 2 (09:23):
That drop and revenues that we saw.
Speaker 9 (09:26):
Well, like I say, it's mostly a blip, but if
you do want to look for weakness, it has been
on the decline. So over the past two years, I've
always only had a single quarter of rising revenue within China.
So that is an ongoing challenge and it has so
much to do with the China consumer market in itself
and the consumer economy. But again, speaking with Ivan Lamb
(09:48):
from Counterpoint Research, he told me that you have what
he called a perfect storm of triggers for people to
upgrade at iPhones now, including all the people who bought
one during the COVID pandemic, are looking for an upgrade
and this generation of iPhones is given them the reason
to do that.
Speaker 2 (10:03):
Okay, so that's on Apple.
Speaker 1 (10:04):
Amazon shares also jumping after hours after they reported strong
numbers out of their cloud computing division in particular, How
did that I suppose growth playoff against the amount of
money that Amazon's investing in AI right.
Speaker 9 (10:20):
Well, investors seem to like it, and they should. Twenty
percent growth when you're the world's biggest cloud computing provider
is really substantial. Amazon is trailing. The likes of Mezo
and Google have better growth rates. But like I say,
it is the biggest. Twenty percent is above what anyone
has really anticipated, and it's a very encouraging sign for
(10:40):
the market leader. That being said, Amazon is spending incredible
amounts of money. Is spent a new record in capital
expenditures over thirty billion dollars over that September quarter, and
its anticipating more than one hundred billion dollars in capital
expenditure for the year, and then saying it will spend
even more in twenty twenty six.
Speaker 1 (10:58):
Okay, so something to watch there as well. This has
been a week though, where we've had most of the
big tech names reporting. What sort of conclusions can we
draw from what we heard from these names that have
been so central to the global equity rally.
Speaker 9 (11:13):
Well, I have to keep stressing this capital expenditure number.
I need to add up the numbers, but we're talking
tens hundreds of billions of dollars. For a good bit
of context, TSMC, which is the world's leading chip maker,
spends roughly about forty billion dollars per year on its
capital expenditures. And that's the company that buys the most expensive,
the most advanced machinery to make the most advanced chips
(11:34):
and it only requires forty billion.
Speaker 2 (11:36):
That's a quarters well for spending.
Speaker 9 (11:38):
Just a little bit less of that is what Meta, Amazon,
Microsoft and Google are putting in at the moment. So
the question that still hangs over everything is when is
that going to pay off? But likes of Microsoft do
tell us that they're finding more demand that they're able
to fulfill. So at the moment, because there is this
AI frenzy that goes from the chip making through the
(11:58):
suppliers of cloud computing, two businesses wanting to be ready
and wanting to have AI capabilities, the demand still is
super strong.
Speaker 1 (12:06):
Okaylat to have off our tech editor, thank you very
much for joining us.
Speaker 2 (12:10):
Stay with us.
Speaker 1 (12:11):
More from Bloomberg Daybreak Europe coming up after this. Now
in Denmark is raising its military commitment to Greenland, which
is seen as crucial to security, along later as expanding
Arctic footprint. The efforts are focused on threats coming from Russia.
Our Copenhagen reporter Sanavas joins me now for more. Sanna,
you went to the remote coast of Greenland for this
(12:31):
story and met some of the soldiers that are on
patrol there. First of all, tell us about this place.
Speaker 10 (12:37):
I got the chance to tag al on Danish routs
to Greenland on multiple occasions, actually, so both on the
west coast and east. It was during the biggest ever
military exercise there and they were joined by several NATO
allies as well. What I'd say about Greenland is generally
(12:57):
is unlike anything that soldiers are used to back in Denmark.
It's a very harsh environment with mountains, ice, very challenging terrain,
unpredictable weather. All the settlements there, they are extremely remote.
Infrastructure is very sparse, so there are no roads connecting
any settlements in Greenland.
Speaker 8 (13:17):
So it's very challenging to defend.
Speaker 10 (13:20):
And it's really what requires that Denmark and NATO allies
as well goes go there to train and to be
prepared to protect Greenland in case of a future future
war with Russia or anyone else.
Speaker 1 (13:35):
For that sake, well, let's talk a little bit about
what exactly they're doing to prepare for that. What sort
of exercises are happening there.
Speaker 10 (13:44):
Yeah, so it's all sorts of things. Infantry soldiers training,
direct confrontations on the ground, exit practicing for kind of
like dealing with hijackings at sea, fighters were training refueling
in air, so a whole span of things that they're
(14:06):
training up there. And of course at the same time,
Denmark's government is also investing a lot of extra money.
In fact, they've agreed to spend seven billion extra, seven
billion dollars extra in the military in the region, so
anything from kind of maritime patrol aircraft to icebreakers and
(14:27):
Arctic ships. Their focus is really shifted east, so they're
investing a lot in their special forces units that are
patrolling in the north eastern Greenland and also establishing kind
of monitoring stations and raiders in East Greenland. And of
course it all comes after Donald Trump he criticized Denmark
for under investing in the defense of Greenland and said he.
Speaker 8 (14:50):
Wanted to take control of the island.
Speaker 10 (14:53):
It's very obvious that his comments have really been a
wake up call in Copenhagen, and it's a big reason
why they are now ramping up their presence.
Speaker 1 (15:03):
Then, and how do people in Greenland feel about this
defense ramp up.
Speaker 10 (15:07):
Yeah, it's mixed. Greenland is I'd say they're very peaceful
people and there's a strong tradition. They're kind of wanting
the island to be a zone of low tension. It
seems Greenland's government is now acknowledging that the security situation
has changed and they're now talking about how a military
build up is actually necessary to keep the island low tension.
(15:31):
But many greenland Is they're very uneasy about more military
presence there, I mean the defense of Greenland. It is
an area that's still controlled by Denmark, so some see
this larger military presence as undermining Greenland's push for greater autonomy.
Speaker 8 (15:46):
Many have also been nervous.
Speaker 10 (15:47):
About US presence because of Trump's very assertive rhetoric. The
US didn't take part in the exercise this time around,
but even Denmark, just Denmark's military.
Speaker 8 (15:58):
They have to tread very carefully.
Speaker 1 (16:01):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 11 (16:08):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 1 (16:14):
You can also listen live each morning on London Dab Radio,
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Speaker 11 (16:20):
Our flagship New York station is also available on your
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Speaker 2 (16:27):
I'm Caroline Hipka and I'm Stephen. Carol.
Speaker 1 (16:29):
Join us again tomorrow morning for all the news you
need to start your day, right here on Bloomberg Daybreak
Europe
Bloomberg Audio Studios, podcasts, radio news. They say it's the
Bloomberg Daybreak Europe podcast. Good morning, It's Friday, the thirty
first of October. I'm Stephen Carroll in London. Coming up today.
Strong earnings from Amazon and Apple boost stock market sentiment
after a brief pause in the global equity rally, King
(00:25):
Charles begins the formal process of removing his brother Andrew's
royal title. Plus, with NATO's Arctic footprint expanding, Denmark is
raising its military commitment to Greenland. Let's start with a
roundup of our top stories. Apple is predicting a surge
in sales in the last three months of the year
from its new iPhones. The tech giant is now expecting
(00:46):
revenues to rise by up to twelve percent over the quarter.
Speaker 2 (00:49):
The forecast is double what.
Speaker 1 (00:51):
Analysts had expected and comes after Apple reported increases in
sales and earnings per share the beat estimates in the
three months to the end of September. That's despite revenue
he is falling almost four percent in China and taris
costing the company over one billion dollars. Nobila Popol is
Senior director for Data and Analytics at IDC, Apple.
Speaker 3 (01:10):
Still maintains a really dominant share of the premium market
and that you know, they haven't lost hold of that.
Of course, certainly competitors are coming up, but I think
the biggest competition that Apple sees is certainly in China,
but overall globally, we see really strong growth in the
segment that Apple plays, which is their premium and they've
maintained that ESCBC, you know, year over your ASP growth
(01:34):
in iPhone, and I think this is what is going
to help drive especially next year.
Speaker 1 (01:38):
Nobilia Popo from IDC speaking there. These results included roughly
two weeks of iPhone seventeen sales, with initial demand appearing strong.
Shares an Apple rows by two point three percent in
after hours trading. I Meanwhile, Amazon's cloud deners posted the
strongest growth right in almost three years. Amazon Web Services
reported third quarter revenue of thirty three billion dollars, twenty
(02:00):
percent from a year earlier and above the average estimate.
The results eased investor concerns that Amazon was over spending
on AI, which shares rising thirteen percent postmarket. Overall sales
rose by thirteen percent to over one hundred and eighty
billion dollars and Amazon expects its shopping chatbot Rufus will
help deliver an additional ten billion dollars in annual sales.
(02:24):
China's president hu Jinping has warned against breaking supply chains
in his first public remarks since meeting US President Donald Trump.
In the speech to other world leaders at the APEX summit,
she called for multilateralism and collaboration. MEMBERTVS Avon Man is
at the summit in South Korea.
Speaker 2 (02:41):
The message in.
Speaker 4 (02:42):
That speech was, China is a defender of the global
trading system at a time when America is sin of
America first policy. We have seen both sides. I commit
to at least bringing down the temperature for at least
another year. Right that one year, true, certainly is longer
than the usual ninety days that we've seen these sort
of truces last. So we are seeing here at least
(03:04):
some daytime. The question is, of course, how long.
Speaker 1 (03:07):
It's quite a lad Man adds that key questions remain
about how the trade truce reached between the two countries
is going to be enforced. The climbed down intentions comes
as China's factory activity slump worsened at October, reaching its
longest decline in more than nine years. Britain's Prince Andrew
has been stripped of his titles and evicted from his
(03:27):
royal residence after a scrutiny of his relationship with sex
offender Jeffrey Epstein. According to a statement from Buckingham Palace,
the King's brother will be known as Andrew Mountbatten Windsor
as a formal procedure begins to remove his honors. Royal
historian George Gross from King's College, London says the scandal
puts the monarchy in a challenging position.
Speaker 5 (03:47):
The royal family remains key parts of charitabul organizations working
on domestic sexual abuse, all of that kind of thing,
so for for him to have that and this in
the background must be impossibly difficult. And also the public
(04:09):
disquiet was very significant on this.
Speaker 1 (04:12):
That's where was the story in George Gross now. The
move follows the publication of a posthumous memoir by one
of Epstein's victims, of Virginia, Roberts Giuffrey, containing allegations against Andrew.
In the Netherlands, the centris D sixty six party looks
said to lead the formation of the next government, with
ninety eight percent of votes counted. D sixty six is
(04:33):
projected to take twenty six seats in the one hundred
and fifty seat parliament. Hitfielder's Far Out Freedom Party is
expected to get the same number of seats, but its
isolation in parliament means it won't have a role in government.
That paves the way for D sixty six leader rob
Yetten to become the next prime minister if he succeeds
in reaching a coalition deal. Senior economist at abn Amrobank
(04:56):
Jan Paul vander Kirk spoke to Bloomberg about what the
result could mean for the Dutch economy.
Speaker 6 (05:01):
That'll be a good thing for the neelins. I think
we have an economy which has performed quite well, outperforms
European peers. But this constraints domestically quite a bit. So
a more pragmatic government which can give some policy certainty
in the face of international policy uncertainty would be very
much welcomed, at least domestically, but also for companies.
Speaker 1 (05:21):
Senior ecluomists to Adab A Mamroe Bank, Jan Pol devander
kirkha there speaking to Bloomberg as Robbie Atam's cabinet could
offer a stark contrast to Hertfielders premiership, and the world's
major alcohol makers have lost nearly half their value since
twenty twenty one, a total of eight hundred and thirty
billion dollars. A Bloomberg index of the beverage market shows
(05:42):
how beer, wine and spirit makers have been left out
of the global equity rally. James Wilcock has more the
hit alcohol.
Speaker 7 (05:51):
Consumption is four times the size of what happened after
the two thousand and eight financial crash. That's how one
analyst describe the shift to Bloomberg and why men in
the sector think it's a structural change. There are all
sorts of reasons. The COVID pandemic sparked, health concerned, weight loss, drugs,
celebrities going teetotal. Tariffs and inflation have taken a toll.
(06:15):
But the crunch is severe and it has led to
job cuts and corporate restructuring as the industry tries to
recover from its hangover in London.
Speaker 2 (06:24):
James Wilcock, Bloomberg.
Speaker 1 (06:25):
Radio, those are your top stories on the markets. The
MSCI Asia Pacific Index is trading slightly higher this morning.
The NICKA and Tokyo, though hit a record high earlier,
currently up by one point nine percent. The hangs hang
in Hong Kong's down by one percent, European stock futures
pointing two tens three tents lower. In fact, for eurostocks,
fifty futures and Nasdaq futures one point one percent higher
(06:47):
after those results from Apple and Amazon, SMP minis are
uped by six tenths of one percent on Wall Street
as well well.
Speaker 2 (06:53):
In a moment, we'll bring you more on.
Speaker 1 (06:55):
Those big tech results, plus a special report from the
Arctic Circle and efforts being made to beef up defenses
in Greenland. But speaking of beef, there's another story that
I've been reading this morning, and it's from our opinion
columns to Howard swayu Wan, who's been writing about the
rising price of beef and how it means that people
are having to pay more for their premium stakes in
(07:15):
restaurants around the world. He's been looking, for example, at
the ten percent rise that we've seen in prices in
London and looking at the underlying causes, including the shortage
of beef farmers. How it's in a profession that's not
attracting that many more people to it. One of the
people he spoke to said that the number of beef
farmers under the age of thirty five is two percent.
Speaker 2 (07:35):
It's also particularly valuable.
Speaker 1 (07:36):
It's got prestige attached to it as well, and he
says that'll continue because you'll get the likes of you know,
tech bros and their finance buddies staying with those restaurants,
even if prices do go up. All of it's a
great read, but actually the part of the struck me
most is Horod's defense of him seeing some of the
big global economic trends through the prism.
Speaker 2 (07:57):
Of food and eating out.
Speaker 1 (07:59):
He writes, the restaurants and food may seem anchored in
cultural and social trends, but they are entry points to
business ideas and economic processes markets like armies marched on
their stomachs, and I couldn't agree more. I'd also add
that Howard does this with a sort of insightful touch
that always leaves you with an appetite for more as well.
You can read his piece at Bloomberg dot com slash opinion,
and we'll put a link to it in our podcast
(08:20):
show notes. Let's bring you more details now on some
of those big tech earnings, Apple predicting a big sales
boost from its newest iPhone in the coming months after
some disappointing numbers from their Chinese businesses. Let's bring in
our tech outure of LAD'SAVAF for more on this. VLAD
investors seemed pretty pleased overall with this update from Apple,
shares rising and after hours trading. Is this all just
(08:41):
excitement about the new iPhone?
Speaker 8 (08:43):
Yeah?
Speaker 9 (08:44):
The iPhone is always going to be the defining product
for Apple's lineup overall, and honestly, the story with it
is very positive. The September quarter was challenged by supply
chain disruptions, CEO Tim Cook said, and he insisted based
growth for the current quarter, and the third party data
that we have been able to get hold of indicates
the same thing. The fhone seventeen generation has been very
(09:06):
well received. It's a redesign, it's an upgrade, especially for
the base model, the most affordable model, and that has
resonated with people both in the US and China, the
two biggest markets.
Speaker 1 (09:17):
Not that I went looking for downsides and these numbers
of LAD, but how much of a concern is the
weakness in China?
Speaker 2 (09:23):
That drop and revenues that we saw.
Speaker 9 (09:26):
Well, like I say, it's mostly a blip, but if
you do want to look for weakness, it has been
on the decline. So over the past two years, I've
always only had a single quarter of rising revenue within China.
So that is an ongoing challenge and it has so
much to do with the China consumer market in itself
and the consumer economy. But again, speaking with Ivan Lamb
(09:48):
from Counterpoint Research, he told me that you have what
he called a perfect storm of triggers for people to
upgrade at iPhones now, including all the people who bought
one during the COVID pandemic, are looking for an upgrade
and this generation of iPhones is given them the reason
to do that.
Speaker 2 (10:03):
Okay, so that's on Apple.
Speaker 1 (10:04):
Amazon shares also jumping after hours after they reported strong
numbers out of their cloud computing division in particular, How
did that I suppose growth playoff against the amount of
money that Amazon's investing in AI right.
Speaker 9 (10:20):
Well, investors seem to like it, and they should. Twenty
percent growth when you're the world's biggest cloud computing provider
is really substantial. Amazon is trailing. The likes of Mezo
and Google have better growth rates. But like I say,
it is the biggest. Twenty percent is above what anyone
has really anticipated, and it's a very encouraging sign for
(10:40):
the market leader. That being said, Amazon is spending incredible
amounts of money. Is spent a new record in capital
expenditures over thirty billion dollars over that September quarter, and
its anticipating more than one hundred billion dollars in capital
expenditure for the year, and then saying it will spend
even more in twenty twenty six.
Speaker 1 (10:58):
Okay, so something to watch there as well. This has
been a week though, where we've had most of the
big tech names reporting. What sort of conclusions can we
draw from what we heard from these names that have
been so central to the global equity rally.
Speaker 9 (11:13):
Well, I have to keep stressing this capital expenditure number.
I need to add up the numbers, but we're talking
tens hundreds of billions of dollars. For a good bit
of context, TSMC, which is the world's leading chip maker,
spends roughly about forty billion dollars per year on its
capital expenditures. And that's the company that buys the most expensive,
the most advanced machinery to make the most advanced chips
(11:34):
and it only requires forty billion.
Speaker 2 (11:36):
That's a quarters well for spending.
Speaker 9 (11:38):
Just a little bit less of that is what Meta, Amazon,
Microsoft and Google are putting in at the moment. So
the question that still hangs over everything is when is
that going to pay off? But likes of Microsoft do
tell us that they're finding more demand that they're able
to fulfill. So at the moment, because there is this
AI frenzy that goes from the chip making through the
(11:58):
suppliers of cloud computing, two businesses wanting to be ready
and wanting to have AI capabilities, the demand still is
super strong.
Speaker 1 (12:06):
Okaylat to have off our tech editor, thank you very
much for joining us.
Speaker 2 (12:10):
Stay with us.
Speaker 1 (12:11):
More from Bloomberg Daybreak Europe coming up after this. Now
in Denmark is raising its military commitment to Greenland, which
is seen as crucial to security, along later as expanding
Arctic footprint. The efforts are focused on threats coming from Russia.
Our Copenhagen reporter Sanavas joins me now for more. Sanna,
you went to the remote coast of Greenland for this
(12:31):
story and met some of the soldiers that are on
patrol there. First of all, tell us about this place.
Speaker 10 (12:37):
I got the chance to tag al on Danish routs
to Greenland on multiple occasions, actually, so both on the
west coast and east. It was during the biggest ever
military exercise there and they were joined by several NATO
allies as well. What I'd say about Greenland is generally
(12:57):
is unlike anything that soldiers are used to back in Denmark.
It's a very harsh environment with mountains, ice, very challenging terrain,
unpredictable weather. All the settlements there, they are extremely remote.
Infrastructure is very sparse, so there are no roads connecting
any settlements in Greenland.
Speaker 8 (13:17):
So it's very challenging to defend.
Speaker 10 (13:20):
And it's really what requires that Denmark and NATO allies
as well goes go there to train and to be
prepared to protect Greenland in case of a future future
war with Russia or anyone else.
Speaker 1 (13:35):
For that sake, well, let's talk a little bit about
what exactly they're doing to prepare for that. What sort
of exercises are happening there.
Speaker 10 (13:44):
Yeah, so it's all sorts of things. Infantry soldiers training,
direct confrontations on the ground, exit practicing for kind of
like dealing with hijackings at sea, fighters were training refueling
in air, so a whole span of things that they're
(14:06):
training up there. And of course at the same time,
Denmark's government is also investing a lot of extra money.
In fact, they've agreed to spend seven billion extra, seven
billion dollars extra in the military in the region, so
anything from kind of maritime patrol aircraft to icebreakers and
(14:27):
Arctic ships. Their focus is really shifted east, so they're
investing a lot in their special forces units that are
patrolling in the north eastern Greenland and also establishing kind
of monitoring stations and raiders in East Greenland. And of
course it all comes after Donald Trump he criticized Denmark
for under investing in the defense of Greenland and said he.
Speaker 8 (14:50):
Wanted to take control of the island.
Speaker 10 (14:53):
It's very obvious that his comments have really been a
wake up call in Copenhagen, and it's a big reason
why they are now ramping up their presence.
Speaker 1 (15:03):
Then, and how do people in Greenland feel about this
defense ramp up.
Speaker 10 (15:07):
Yeah, it's mixed. Greenland is I'd say they're very peaceful
people and there's a strong tradition. They're kind of wanting
the island to be a zone of low tension. It
seems Greenland's government is now acknowledging that the security situation
has changed and they're now talking about how a military
build up is actually necessary to keep the island low tension.
(15:31):
But many greenland Is they're very uneasy about more military
presence there, I mean the defense of Greenland. It is
an area that's still controlled by Denmark, so some see
this larger military presence as undermining Greenland's push for greater autonomy.
Speaker 8 (15:46):
Many have also been nervous.
Speaker 10 (15:47):
About US presence because of Trump's very assertive rhetoric. The
US didn't take part in the exercise this time around,
but even Denmark, just Denmark's military.
Speaker 8 (15:58):
They have to tread very carefully.
Speaker 1 (16:01):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 11 (16:08):
Look for us on your podcast feed every morning, on Apple, Spotify,
and anywhere else you get your podcasts.
Speaker 1 (16:14):
You can also listen live each morning on London Dab Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 11 (16:20):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty.
Speaker 2 (16:27):
I'm Caroline Hipka and I'm Stephen. Carol.
Speaker 1 (16:29):
Join us again tomorrow morning for all the news you
need to start your day, right here on Bloomberg Daybreak
Europe
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