September 10, 2025 • 21 mins
Your morning briefing, the business news you need in just 15 minutes.
On today's podcast:
(1) Israel’s attack against Hamas in Qatar drew rare public criticism from Donald Trump and underscored the risk that the war in Gaza could get worse before it gets better.
(2) Poland condemned a Russian drone incursion as an “act of aggression,” saying its military shot down some of the objects that entered its airspace from neighboring Ukraine.
(3) President Emmanuel Macron named Sebastien Lecornu France’s new prime minister, tapping a longtime ally to pick up the mantle of trying to pass a budget through a divided parliament.
(4) President Donald Trump told European officials he’s willing to impose sweeping new tariffs on India and China to push President Vladimir Putin to the negotiating table with Ukraine — but only if EU nations do so as well.
(5) A judge temporarily blocked President Donald Trump from removing Federal Reserve Governor Lisa Cook, allowing her to remain on the job as she challenges the president’s efforts to oust her over allegations of mortgage fraud.
(6) Apple introduced its thinnest-ever iPhone and new Pro versions with enhanced cameras and more battery life, betting that a flurry of smartphone innovation can entice shoppers this holiday season
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Transcript
Episode Transcript
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Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio news.
Speaker 2 (00:09):
This is the Bloomberg Day BAQ podcast. Good morning, It's Wednesday,
the tenth of September. I'm Caroline Hepka in London and.
Speaker 1 (00:15):
I'm Stephen Caroline Brussels. Coming up today, the United States
offers rare criticism of Israel after the unprecedented bombing of
her mass leaders in Katar.
Speaker 2 (00:25):
Poland scrambles jets and shots Warsaw Airport as it engages
with Russian strike drones over its territory in what it
calls an act of aggression.
Speaker 1 (00:35):
Plus slimming down to boost sales, Apple unveils a new
thinner iPhone air, but a new lineup leaves investors underwhelmed.
Speaker 2 (00:43):
Let's start with a roundup of our top stories.
Speaker 1 (00:45):
Israel's unprecedented strike on her mass targets and the Katari
capital Doha has drawn rare public criticism from Donald Trump.
Until now, the US President has appeared aligned with Israeli
Prime Minister Benjaminettania, Who's aggressive approach to targeting regional adversaries. However,
Trump voice frustration as he said he was not given
advanced notice of the attack.
Speaker 3 (01:06):
I'm not thrilled.
Speaker 4 (01:07):
About the whole situations not a good situation. But I
will say this, we want the hostages back, but we
are not thrilled about the way that went down today.
Speaker 1 (01:19):
Trump added that he spoke with both ness and Niahu
and Katari leaders after the strike and assured Katar that
such an attack would not happen again. Hamas said five
of its members were killed in the Doha attack, though
its main negotiating delegations survived. Meanwhile, European leaders denounced the
strike as a setback to Katari mediated talks aimed at
ending the war in Gaza and securing the release of
(01:41):
hostages held by Hamas.
Speaker 2 (01:44):
Now, Poland has deployed military jets and shut down part
of its airspace as it engaged with Russian strike drones
that Poland's military says have repeatedly violated its airspace. Bloomberg's
Mijo Kubala reports.
Speaker 5 (01:57):
Now, the Russian drones crossed over from me bring Ukraine
in what Poland has condemned as an act of aggression.
The country's military says and operation is underway to identify
and neutralize the objects. It urged residents in a number
of border regions to stay at home authorities also closed
the airspace over parts of the country, including around the
main international airport in Warsaw. Prime Minister Donald Tusk said
(02:19):
he briefed NATO Secretary General Markrute about the current situation
and that they remain in constant contact in Brussels. Mikael
Kubala Bloomberg.
Speaker 1 (02:27):
Radio BLOOMBERGUDA stands that US President Donald Trump told European
officials he's willing to impose sweeping new tariffs on India
and China, but only if the EU does so as well.
The aim of the tariffs would be to push Russia's
Ladimir Putin to the negotiating table with Ukraine. It comes
after President Trump's deadline for Putin to engage in face
(02:48):
to face peace talks with Ukrainess of vladimir' Elensky passed
without consequence. Trump's proposal comes as the UK has reopened
its dialogue with Beijing. Business Secretary Peter Kaid is attending
the first high level trade top with the two countries
since twenty eighteen, is expected to press for better access
for British companies.
Speaker 2 (03:07):
France's President of Maduel Macon has named out going Defence
Minister Sebasiel Locarno as his new Prime Minister. Macwar has
asked his longtime ally to consult the political groupings in
Parliament with a view to adopting a budget. Finding consensus
on tax and spending plans that cut France's deficit will
be Lecurno's biggest challenge. As our Paris Bureau chief Alan
(03:29):
Katz explains.
Speaker 6 (03:32):
Look on new who came originally from a party called
the Republicans, which is sort of a center right party,
has been with mccon since mcworm became president in twenty seventeen.
Is he the person to sort of build bridges across
these political parties. It's not immediately obvious. He's known as
the skilled negotiator. He doesn't have a lot of enemies.
He's been pretty good as a defense minister.
Speaker 2 (03:54):
Alan Katz went on to say that Locurno's minority government
will need tacit approval from the left all the right
to survive a possible no confidence motion.
Speaker 1 (04:04):
A judge has temporarily blocked Donald Trump from removing Federal
Reserve Governor Lisa Cook, allowing her to stay in the
job while challenging mortgage fraud allegations. The ruling means Cook
will likely be able to take part in the fed's
highly anticipated interest rate decision meeting next week. The judge
concluded that the alleged Mius conduct likely didn't amount to
(04:26):
cause for firing under the Federal Reserve Act, and the
nature of her dismissal likely violated due process rights under
the Constitution.
Speaker 2 (04:34):
US job's growth was far less robust than the year
through to the end of March than previously reported. The
number of workers on payrolls will likely be revised down
by a record nine hundred and eleven thousand, or zero
point six percent, according to the US government's preliminary benchmark revision.
JP Morgan CEO Jamie Darman says that that latest US
(04:57):
payrolls revision is more proof that the is slowing. He
was speaking to CNBC. He also acknowledged the unpredictable nature
of economic growth.
Speaker 7 (05:07):
The government data is important, our own data is important.
We get data from non government sources and you know,
you can look at Delingercy data, worldwide data, trade data.
We get all of that. But trying to figureut what
the clim is going to do is still hard to
do with all that data. And maybe one day AI
I'll fix that problem. But uh, you know, hopefully things
will be okay and but you do see that kind
(05:28):
of weakening.
Speaker 2 (05:28):
Unfortunately, JP Morgan's Jamie Diamond there as US Treasury Sector
Scott best End called on the Federal Reserve to see
the data as a strong reason to change its policy
stants and cut rates.
Speaker 1 (05:41):
British business groups of Warrens the labor governments at fiscal
policies could stoke price increases and threaten companies with billions
of pounds and extra costs. They say the Chancellor's policies
on taxes, employment rights and the minimum wage threatened to
pile billions of pounds of operating costs onto companies and
stoke price increases for another year. A spokesperson for the
(06:02):
British Chambers of Commerce said their number one ask from
her upcoming budget in November is for no more tax
increases on businesses. In the House of Commons, the Chancellor
hit back at the Conservative Party suggested that the UK
might need an IMF bailout due to higher borrowing costs.
Speaker 8 (06:19):
The country would have heard what the leader of the
opposition said today talking down our economy in a desperate
attempt to get attention The truth is that the benches
opposite note that it is not serious and it is irresponsible.
The only thing in Britain that leaves a bailout is
the Tory Party from its failed leadership.
Speaker 1 (06:41):
Josh love One, Chancell rayjer Reeves speaking there is Boomberg
Economics calculates that she needs to fill a projected thirty
five billion pound fiscal hole in her budget.
Speaker 2 (06:49):
In November and Lassie Apple has introduced a fresh range
of products, including enhanced AirPods, watches, and its thinnest ever iPhone,
along with new pro versions of the device. The new
skinnier model dubs the iPhone seventeen Air do the loudest
cheers at its launch event in California, but it lags
in key areas including on battery, life, cameras and audio.
(07:13):
Dan Ives, the global head of tech research at web
Bush Securities, gave his tech take on the new upgrades.
Speaker 9 (07:20):
Look, the reality is that this is not going to
be a super cycle. There's nothing here that makes you
think that this is going to be the game change
that everyone's been waiting for. But I do believe given
the install is given some of the tweaks here and
ultimately on the on sort of the second half of
this upgrade cycle, you will have an AI driven ECOSYSMAB,
(07:41):
we will be Google Gemini. This could be a sneaky
upgrade cycle that I think surprises investors on the upside.
Speaker 2 (07:48):
Dan Ives, the global head of Tech research at Webb
Bush Securities, as investor reaction was muted with Apple shares
down one and a half percent in New York.
Speaker 1 (07:59):
And those are time stories coming up. Looking at the
markets this morning, eurostocks fifty futures are at the moment
two tens of one percent higher. In Asia, we have
seen the MSCIS Specific index up by one point one percent,
the hang Sayings up by one point three percent today.
On currency markets, Bimberg dollar spot inex a tenth of
one percent week, or the eurotraining at one seventeen sixty
(08:19):
in the ten year treasury yield is holding steady this
morning at four point zero nine percent.
Speaker 2 (08:25):
Now, you were in Paris yesterday, as Stephen Koe You're
back in Brussels today. There is simply no shortage of
news that we must discuss, and we will be thinking
about the strikes in Cut on just a moment. But
there's also Nova Nordisk out today talking about slashing nine
thousand jobs. And we've had more reaction from Poland around
(08:47):
the drone incident. These drones at the Polish military say,
have repeatedly come over from Ukraine, their Russian drones of
Poland convening an emergency cabinet meeting after this drone incident,
and so lots going on in Europe. Barely a chance
to think really about the politics in France today.
Speaker 1 (09:06):
Yeah, indeed, and of course the big event in France
today is going to be the protest, which are going
to overshadow Sebastiania Cornoho's first day as Prime minister. He's
going to have his handover ceremony in a couple of
hours with Francois Berou. Will will get a chance to
hear a little bit from the new Prime minister as well.
And he has an already absolutely massive job trying to
win support in a very fractured National Assembly to try
and get budget proposals underway. But the short term challenges
(09:30):
are going to be around how disruptive this day of
protest is. It was a movement largely organized on social
media called Let's Block Everything, and it comes ahead of
a much briger demonstration organized by the Unions, which is
happening next week. But both are going to cause use
disruption to people's everyday life in France. So perhaps not
the best first day for the new Prime Minister Sebastiana Cornu.
Speaker 2 (09:50):
No, indeed, right, Well, let's discuss then the other stories.
Our main news item Israel's attack against Hamasin kata, a
U ally and key mediator in the talks over the
war in Gaza. It has deeply unnerved the region. Joining
us now is our Middle East and Africa Managing editor
Paul Wallace. Paul, good to have you with us. What
(10:12):
has been the reaction in Kutar to this attack? Do
you think we should expect a response?
Speaker 3 (10:19):
Hi Hee, Caroline. This attack has been i'd say universally condemned.
It's hard to find a country that's sticking up for
Israel in terms of the strike. Even the US is
making it pretty clear that it was not happy with this.
It has an outright condemned or criticized Israel or Prime
(10:40):
Minister Benjamin Nettan Yahoo, but it's made very clear that
it was unhappy with Israel choosing to launch an air
strike on Qatar's capital, and it's very awkward for Donald Trump.
Speaker 9 (10:53):
To say the least.
Speaker 3 (10:55):
Saudi Arabia has called it a criminal at the Gas
states of all sais that this endangers regional security and
that it's a reckless act. So there's certainly a feeling
of i'd say, outrage in the region from from among
a lot of governments and a lot of official officials
about about what happened yesterday.
Speaker 1 (11:18):
Yeah, indeed, and the effects, as you say, being discussed
across the region as well. I mean, where does Israel
go from here after, you know, the sort of ripple
effects across the region from the strike.
Speaker 3 (11:33):
It's a very good question. We're going to have to
wait and see. In terms of Caroen what you asked
about whether there would be a reaction. I think there's
going to be something. I'm not saying it will be
a military reaction from Kappa or any of the other
Gulf states. I really doubt they would even think of
something like that. But they have leverage in other ways,
whether it's you know, the financial financial route in terms
(11:58):
of you know, ending pledges to invest in to invest
in America. Many of those pledges were only made as
recently as May when Don Trump flew to you know,
Saudi Arabia and Qatar and the UAE. And you know
he wore me embraced Cuto's leader when he was there,
you know.
Speaker 10 (12:16):
Uh, So there's that.
Speaker 3 (12:18):
There's also you know, the UAE could well reduce what
ties it has with Israel and reduce sort of contact
between between officials. I don't think Israel is going to
be that perturbed by any of that. I'm sure it's
aware that some of this stuff might happen, and I
just don't think it cares because from Israel's point of view,
(12:40):
they said, Hamas officials off a air game wherever they
are in the world, no matter of their rank. So
Israel felt that it was it was okay and in
its national interest to go after that. It did say
that it was partly a reaction to Monday's attack in
Jerusalem when a Palestinian gunman killed killed six people. So
(13:03):
the longest short of it is we will see a
reaction of some kind. This could be the end of
the ceasefire walks between Hamas and UH and Israel for
the time being, they were already stuttering, they were already
effectively halted. But this could could put a sort of
formal end to them, and it will have diplomatic repercussions,
(13:24):
and I guess those will play out in the coming
weeks and months.
Speaker 2 (13:28):
Yeah, I suppose what does it also mean for the
war in Gaza for Palestinian people? Are you and body
declaring a family in parts of the territory? I mean,
what happens now with that conflict exactly?
Speaker 3 (13:42):
And there are even some Israeli saying this is a
disaster for the prospects of ending ending the war soon.
There were some family members of Israeli hostages that are
still held in Garza really criticizing Ettigno, who lost night
and late yesterday for this attack and saying that this
(14:03):
will set back the prospects for a ceasefile into the war.
It is difficult to say, Nasnel, who himself is arguing
that this is something that can hasten the end to
the war. It's difficult to sort of square that with
the reality right now, because you know, the people that
Israel targeted these Hamas leaders, a lot of you know,
(14:27):
they were essentially front and center of these ceasefire talks.
We you know, the leaders that were targeted don't seem
to have been killed. Some other people were lower level
from US officials. But you know, Israel going after those
those key mediators, you know, it's hard to see how
that's going to help get how much to the point
(14:49):
where it surrenders or accepts the cease fire.
Speaker 1 (14:52):
Okay, Paul, thank you very much. Paul Whiles there our
Middleast Inn Africa Managing editor. Stay with us. More from
Bloomberg Day Break Europe coming up after this.
Speaker 2 (15:02):
Now it is time to think about another story across
the US. Apple has launched its new thinner iPhone seventeen Air,
as well as a number of other products, a story
that we've been thinking about this after signs of slowing
demand in recent years for what has been the biggest
money maker for Apple, the iPhone. Investors were generally underwhelmed,
(15:25):
Apple's share price falling one and a half percent in
New York trading. A little earlier, we spoke to Bloomberg's
consumer Technology managing Edison Mark German, and started by asking him, well,
of course, for his verdict on the new products.
Speaker 10 (15:39):
I like that they've brought the forty eight megapixel camera
to the telehotal lens. That's a big improvement in my
viewpoint for daily photography purposes. I think people are really
going to like the new design and form factor. One
thing that I will tell you is that one of
the flagship features of this new phone is fixing a
problem they introduced two years ago. They may recall. With
(16:00):
the fifteen Pro, they moved to a titanium design. You
have some benefits with titanium, right, durability being one of them.
But one of the big drawbacks is it doesn't dissipate
heat as well as aluminum, and so now they're moving
back to aluminum because the last two models overheated.
Speaker 1 (16:19):
Is it going to be enough to tempt people to
upgrade their phones the really key question that Apple is
trying to get that achievement with these new models.
Speaker 10 (16:30):
Oh absolutely. I mean design is what sells new phones,
right if you're an Apple customer, and I think that
this is the biggest change to the iPhone in half
a decade, and so you'll see lines for this thing,
particularly the Orange Pro. I think the iPhone Air is interesting,
but it's not practical for the vast, vast, vast vast
(16:53):
majority of people. Battery life, performance, camera issues, et cetera,
et cetera. So I think it's really the profones that
are going to move the needle for Apple this year,
there's also new Apple Watches, there's new AirPods, and I
thought they did a good job on the AirPods. I
thought the new Apple Watches were sort of mediocre updates.
Speaker 2 (17:16):
My main question, as someone who studied languages way back when,
is that the airports, in a very sort of slick
presentation that they delivered, showed this idea of simultaneous translation
for the AirPods. I mean, also, it's had for some
time the idea of helping people with hearing loss, but
I thought simultaneous translation in the era of chat GPT
(17:39):
as well, that seemed really pretty novel. If it really
works that.
Speaker 10 (17:44):
Way, Yeah, the simultaneous translation is very cool. It does
work quite well. The only question is and how many
people are needing to use that feature?
Speaker 2 (17:54):
Right?
Speaker 10 (17:54):
It doesn't seem like a feature that's going to get
super wide adoption a lot of use. There's not many
use cases where you would need that translation feature, especially
when you think about it, You're going with another country, right,
and how many people are going to run into that
you need to talk to in their language that already
have aeropods in their ears. So certainly it's something that
(18:21):
a lot of people are gonna want to use a demo,
but maybe not something that's going to be used on
a daily basis in practice. The heart rate feature is
pretty cool. They added these to the power Beats in January.
Now they're bringing them to the Aeropods Pro. It's going
to get more people on the Apple ecosystem, I think,
and maybe interest people even and upgrading to Apple Watch
(18:42):
or fitness subscriptions and what have you.
Speaker 1 (18:45):
I want to come back to the iPhone Air for
a moment because some of the issues that you flagged
around it, like things like battery life. Is this a
first iteration of a product that will evolve and could
become a much bigger setup for Apple down the line.
Speaker 10 (18:59):
Well, I think about what the MacBook Air was. It
was a device that started off with mediocre battery life,
terrible processing power that it was super thin and light
and marketable. Right, You're going to see the same thing
happen all iPhones one day are going to be like
the iPhone Air. The iPhone Air is sort of exactly
what Apple wants to hit one day. It's just going
to take a while for them to get the performance
(19:21):
and the camera technology for a profone in that slim
down form factor.
Speaker 2 (19:26):
Let's think money. Apple actually called this launch event, they
named it or dropping. Investors were not particularly impressed. The
share price of Apple went down just after that presentation.
And then you also have to think about the flip
side of that, the price tag of the hardware that
is on offer. How do you think about it in
(19:47):
terms of you know the numbers.
Speaker 10 (19:50):
Well, what you got was a silent price hike. So
instead of hiking prices, the iPhone air came in at
one thousand US, which is one hundred dollars more than
the sixteen plus it replaces. And fine. The other thing
to note is that the fifteen or the seventeen pro
I should say, comes in at eleven hundred US, that
(20:12):
is one hundred dollars increase year of a year from
the sixteen pro. But they are doubling the storage at
the starting capacity, and so it's basically no price increase.
That's why I call it a silent price increase. And
then you have watches and AirPods saying stagnan in terms
of pricing, the AirPods at to fifty, the watch se
at two fifty, and so forth. But the big story
(20:35):
here is that investors really need to reset their expectations.
I mean, you're not going to see major AI innovation
for a couple of years from now. You're not going
to see a big update tail serie until next year.
And so the question is why are you an Apple stock?
Don't you understand that Apple's a hardware company and this
is their hardware showcase and they make their money from
(20:56):
hardware and what they delivered here. Sure, there's I have
serious concerns with the iPhone Air. I have criticisms with
the iPhone promas. I think they could have done more
on the Apple watches. But these are going to sell,
and they're going to sell on big quantities, and so
I think investors should be pretty pleased here.
Speaker 1 (21:13):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (21:19):
Look for us on your podcast feed every morning, on Apple,
Spotify and anywhere else you get your podcasts.
Speaker 1 (21:25):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (21:31):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.
I'm Caroline Hepka.
Speaker 1 (21:40):
And I'm Stephen Carroll. 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.
Speaker 2 (00:09):
This is the Bloomberg Day BAQ podcast. Good morning, It's Wednesday,
the tenth of September. I'm Caroline Hepka in London and.
Speaker 1 (00:15):
I'm Stephen Caroline Brussels. Coming up today, the United States
offers rare criticism of Israel after the unprecedented bombing of
her mass leaders in Katar.
Speaker 2 (00:25):
Poland scrambles jets and shots Warsaw Airport as it engages
with Russian strike drones over its territory in what it
calls an act of aggression.
Speaker 1 (00:35):
Plus slimming down to boost sales, Apple unveils a new
thinner iPhone air, but a new lineup leaves investors underwhelmed.
Speaker 2 (00:43):
Let's start with a roundup of our top stories.
Speaker 1 (00:45):
Israel's unprecedented strike on her mass targets and the Katari
capital Doha has drawn rare public criticism from Donald Trump.
Until now, the US President has appeared aligned with Israeli
Prime Minister Benjaminettania, Who's aggressive approach to targeting regional adversaries. However,
Trump voice frustration as he said he was not given
advanced notice of the attack.
Speaker 3 (01:06):
I'm not thrilled.
Speaker 4 (01:07):
About the whole situations not a good situation. But I
will say this, we want the hostages back, but we
are not thrilled about the way that went down today.
Speaker 1 (01:19):
Trump added that he spoke with both ness and Niahu
and Katari leaders after the strike and assured Katar that
such an attack would not happen again. Hamas said five
of its members were killed in the Doha attack, though
its main negotiating delegations survived. Meanwhile, European leaders denounced the
strike as a setback to Katari mediated talks aimed at
ending the war in Gaza and securing the release of
(01:41):
hostages held by Hamas.
Speaker 2 (01:44):
Now, Poland has deployed military jets and shut down part
of its airspace as it engaged with Russian strike drones
that Poland's military says have repeatedly violated its airspace. Bloomberg's
Mijo Kubala reports.
Speaker 5 (01:57):
Now, the Russian drones crossed over from me bring Ukraine
in what Poland has condemned as an act of aggression.
The country's military says and operation is underway to identify
and neutralize the objects. It urged residents in a number
of border regions to stay at home authorities also closed
the airspace over parts of the country, including around the
main international airport in Warsaw. Prime Minister Donald Tusk said
(02:19):
he briefed NATO Secretary General Markrute about the current situation
and that they remain in constant contact in Brussels. Mikael
Kubala Bloomberg.
Speaker 1 (02:27):
Radio BLOOMBERGUDA stands that US President Donald Trump told European
officials he's willing to impose sweeping new tariffs on India
and China, but only if the EU does so as well.
The aim of the tariffs would be to push Russia's
Ladimir Putin to the negotiating table with Ukraine. It comes
after President Trump's deadline for Putin to engage in face
(02:48):
to face peace talks with Ukrainess of vladimir' Elensky passed
without consequence. Trump's proposal comes as the UK has reopened
its dialogue with Beijing. Business Secretary Peter Kaid is attending
the first high level trade top with the two countries
since twenty eighteen, is expected to press for better access
for British companies.
Speaker 2 (03:07):
France's President of Maduel Macon has named out going Defence
Minister Sebasiel Locarno as his new Prime Minister. Macwar has
asked his longtime ally to consult the political groupings in
Parliament with a view to adopting a budget. Finding consensus
on tax and spending plans that cut France's deficit will
be Lecurno's biggest challenge. As our Paris Bureau chief Alan
(03:29):
Katz explains.
Speaker 6 (03:32):
Look on new who came originally from a party called
the Republicans, which is sort of a center right party,
has been with mccon since mcworm became president in twenty seventeen.
Is he the person to sort of build bridges across
these political parties. It's not immediately obvious. He's known as
the skilled negotiator. He doesn't have a lot of enemies.
He's been pretty good as a defense minister.
Speaker 2 (03:54):
Alan Katz went on to say that Locurno's minority government
will need tacit approval from the left all the right
to survive a possible no confidence motion.
Speaker 1 (04:04):
A judge has temporarily blocked Donald Trump from removing Federal
Reserve Governor Lisa Cook, allowing her to stay in the
job while challenging mortgage fraud allegations. The ruling means Cook
will likely be able to take part in the fed's
highly anticipated interest rate decision meeting next week. The judge
concluded that the alleged Mius conduct likely didn't amount to
(04:26):
cause for firing under the Federal Reserve Act, and the
nature of her dismissal likely violated due process rights under
the Constitution.
Speaker 2 (04:34):
US job's growth was far less robust than the year
through to the end of March than previously reported. The
number of workers on payrolls will likely be revised down
by a record nine hundred and eleven thousand, or zero
point six percent, according to the US government's preliminary benchmark revision.
JP Morgan CEO Jamie Darman says that that latest US
(04:57):
payrolls revision is more proof that the is slowing. He
was speaking to CNBC. He also acknowledged the unpredictable nature
of economic growth.
Speaker 7 (05:07):
The government data is important, our own data is important.
We get data from non government sources and you know,
you can look at Delingercy data, worldwide data, trade data.
We get all of that. But trying to figureut what
the clim is going to do is still hard to
do with all that data. And maybe one day AI
I'll fix that problem. But uh, you know, hopefully things
will be okay and but you do see that kind
(05:28):
of weakening.
Speaker 2 (05:28):
Unfortunately, JP Morgan's Jamie Diamond there as US Treasury Sector
Scott best End called on the Federal Reserve to see
the data as a strong reason to change its policy
stants and cut rates.
Speaker 1 (05:41):
British business groups of Warrens the labor governments at fiscal
policies could stoke price increases and threaten companies with billions
of pounds and extra costs. They say the Chancellor's policies
on taxes, employment rights and the minimum wage threatened to
pile billions of pounds of operating costs onto companies and
stoke price increases for another year. A spokesperson for the
(06:02):
British Chambers of Commerce said their number one ask from
her upcoming budget in November is for no more tax
increases on businesses. In the House of Commons, the Chancellor
hit back at the Conservative Party suggested that the UK
might need an IMF bailout due to higher borrowing costs.
Speaker 8 (06:19):
The country would have heard what the leader of the
opposition said today talking down our economy in a desperate
attempt to get attention The truth is that the benches
opposite note that it is not serious and it is irresponsible.
The only thing in Britain that leaves a bailout is
the Tory Party from its failed leadership.
Speaker 1 (06:41):
Josh love One, Chancell rayjer Reeves speaking there is Boomberg
Economics calculates that she needs to fill a projected thirty
five billion pound fiscal hole in her budget.
Speaker 2 (06:49):
In November and Lassie Apple has introduced a fresh range
of products, including enhanced AirPods, watches, and its thinnest ever iPhone,
along with new pro versions of the device. The new
skinnier model dubs the iPhone seventeen Air do the loudest
cheers at its launch event in California, but it lags
in key areas including on battery, life, cameras and audio.
(07:13):
Dan Ives, the global head of tech research at web
Bush Securities, gave his tech take on the new upgrades.
Speaker 9 (07:20):
Look, the reality is that this is not going to
be a super cycle. There's nothing here that makes you
think that this is going to be the game change
that everyone's been waiting for. But I do believe given
the install is given some of the tweaks here and
ultimately on the on sort of the second half of
this upgrade cycle, you will have an AI driven ECOSYSMAB,
(07:41):
we will be Google Gemini. This could be a sneaky
upgrade cycle that I think surprises investors on the upside.
Speaker 2 (07:48):
Dan Ives, the global head of Tech research at Webb
Bush Securities, as investor reaction was muted with Apple shares
down one and a half percent in New York.
Speaker 1 (07:59):
And those are time stories coming up. Looking at the
markets this morning, eurostocks fifty futures are at the moment
two tens of one percent higher. In Asia, we have
seen the MSCIS Specific index up by one point one percent,
the hang Sayings up by one point three percent today.
On currency markets, Bimberg dollar spot inex a tenth of
one percent week, or the eurotraining at one seventeen sixty
(08:19):
in the ten year treasury yield is holding steady this
morning at four point zero nine percent.
Speaker 2 (08:25):
Now, you were in Paris yesterday, as Stephen Koe You're
back in Brussels today. There is simply no shortage of
news that we must discuss, and we will be thinking
about the strikes in Cut on just a moment. But
there's also Nova Nordisk out today talking about slashing nine
thousand jobs. And we've had more reaction from Poland around
(08:47):
the drone incident. These drones at the Polish military say,
have repeatedly come over from Ukraine, their Russian drones of
Poland convening an emergency cabinet meeting after this drone incident,
and so lots going on in Europe. Barely a chance
to think really about the politics in France today.
Speaker 1 (09:06):
Yeah, indeed, and of course the big event in France
today is going to be the protest, which are going
to overshadow Sebastiania Cornoho's first day as Prime minister. He's
going to have his handover ceremony in a couple of
hours with Francois Berou. Will will get a chance to
hear a little bit from the new Prime minister as well.
And he has an already absolutely massive job trying to
win support in a very fractured National Assembly to try
and get budget proposals underway. But the short term challenges
(09:30):
are going to be around how disruptive this day of
protest is. It was a movement largely organized on social
media called Let's Block Everything, and it comes ahead of
a much briger demonstration organized by the Unions, which is
happening next week. But both are going to cause use
disruption to people's everyday life in France. So perhaps not
the best first day for the new Prime Minister Sebastiana Cornu.
Speaker 2 (09:50):
No, indeed, right, Well, let's discuss then the other stories.
Our main news item Israel's attack against Hamasin kata, a
U ally and key mediator in the talks over the
war in Gaza. It has deeply unnerved the region. Joining
us now is our Middle East and Africa Managing editor
Paul Wallace. Paul, good to have you with us. What
(10:12):
has been the reaction in Kutar to this attack? Do
you think we should expect a response?
Speaker 3 (10:19):
Hi Hee, Caroline. This attack has been i'd say universally condemned.
It's hard to find a country that's sticking up for
Israel in terms of the strike. Even the US is
making it pretty clear that it was not happy with this.
It has an outright condemned or criticized Israel or Prime
(10:40):
Minister Benjamin Nettan Yahoo, but it's made very clear that
it was unhappy with Israel choosing to launch an air
strike on Qatar's capital, and it's very awkward for Donald Trump.
Speaker 9 (10:53):
To say the least.
Speaker 3 (10:55):
Saudi Arabia has called it a criminal at the Gas
states of all sais that this endangers regional security and
that it's a reckless act. So there's certainly a feeling
of i'd say, outrage in the region from from among
a lot of governments and a lot of official officials
about about what happened yesterday.
Speaker 1 (11:18):
Yeah, indeed, and the effects, as you say, being discussed
across the region as well. I mean, where does Israel
go from here after, you know, the sort of ripple
effects across the region from the strike.
Speaker 3 (11:33):
It's a very good question. We're going to have to
wait and see. In terms of Caroen what you asked
about whether there would be a reaction. I think there's
going to be something. I'm not saying it will be
a military reaction from Kappa or any of the other
Gulf states. I really doubt they would even think of
something like that. But they have leverage in other ways,
whether it's you know, the financial financial route in terms
(11:58):
of you know, ending pledges to invest in to invest
in America. Many of those pledges were only made as
recently as May when Don Trump flew to you know,
Saudi Arabia and Qatar and the UAE. And you know
he wore me embraced Cuto's leader when he was there,
you know.
Speaker 10 (12:16):
Uh, So there's that.
Speaker 3 (12:18):
There's also you know, the UAE could well reduce what
ties it has with Israel and reduce sort of contact
between between officials. I don't think Israel is going to
be that perturbed by any of that. I'm sure it's
aware that some of this stuff might happen, and I
just don't think it cares because from Israel's point of view,
(12:40):
they said, Hamas officials off a air game wherever they
are in the world, no matter of their rank. So
Israel felt that it was it was okay and in
its national interest to go after that. It did say
that it was partly a reaction to Monday's attack in
Jerusalem when a Palestinian gunman killed killed six people. So
(13:03):
the longest short of it is we will see a
reaction of some kind. This could be the end of
the ceasefire walks between Hamas and UH and Israel for
the time being, they were already stuttering, they were already
effectively halted. But this could could put a sort of
formal end to them, and it will have diplomatic repercussions,
(13:24):
and I guess those will play out in the coming
weeks and months.
Speaker 2 (13:28):
Yeah, I suppose what does it also mean for the
war in Gaza for Palestinian people? Are you and body
declaring a family in parts of the territory? I mean,
what happens now with that conflict exactly?
Speaker 3 (13:42):
And there are even some Israeli saying this is a
disaster for the prospects of ending ending the war soon.
There were some family members of Israeli hostages that are
still held in Garza really criticizing Ettigno, who lost night
and late yesterday for this attack and saying that this
(14:03):
will set back the prospects for a ceasefile into the war.
It is difficult to say, Nasnel, who himself is arguing
that this is something that can hasten the end to
the war. It's difficult to sort of square that with
the reality right now, because you know, the people that
Israel targeted these Hamas leaders, a lot of you know,
(14:27):
they were essentially front and center of these ceasefire talks.
We you know, the leaders that were targeted don't seem
to have been killed. Some other people were lower level
from US officials. But you know, Israel going after those
those key mediators, you know, it's hard to see how
that's going to help get how much to the point
(14:49):
where it surrenders or accepts the cease fire.
Speaker 1 (14:52):
Okay, Paul, thank you very much. Paul Whiles there our
Middleast Inn Africa Managing editor. Stay with us. More from
Bloomberg Day Break Europe coming up after this.
Speaker 2 (15:02):
Now it is time to think about another story across
the US. Apple has launched its new thinner iPhone seventeen Air,
as well as a number of other products, a story
that we've been thinking about this after signs of slowing
demand in recent years for what has been the biggest
money maker for Apple, the iPhone. Investors were generally underwhelmed,
(15:25):
Apple's share price falling one and a half percent in
New York trading. A little earlier, we spoke to Bloomberg's
consumer Technology managing Edison Mark German, and started by asking him, well,
of course, for his verdict on the new products.
Speaker 10 (15:39):
I like that they've brought the forty eight megapixel camera
to the telehotal lens. That's a big improvement in my
viewpoint for daily photography purposes. I think people are really
going to like the new design and form factor. One
thing that I will tell you is that one of
the flagship features of this new phone is fixing a
problem they introduced two years ago. They may recall. With
(16:00):
the fifteen Pro, they moved to a titanium design. You
have some benefits with titanium, right, durability being one of them.
But one of the big drawbacks is it doesn't dissipate
heat as well as aluminum, and so now they're moving
back to aluminum because the last two models overheated.
Speaker 1 (16:19):
Is it going to be enough to tempt people to
upgrade their phones the really key question that Apple is
trying to get that achievement with these new models.
Speaker 10 (16:30):
Oh absolutely. I mean design is what sells new phones,
right if you're an Apple customer, and I think that
this is the biggest change to the iPhone in half
a decade, and so you'll see lines for this thing,
particularly the Orange Pro. I think the iPhone Air is interesting,
but it's not practical for the vast, vast, vast vast
(16:53):
majority of people. Battery life, performance, camera issues, et cetera,
et cetera. So I think it's really the profones that
are going to move the needle for Apple this year,
there's also new Apple Watches, there's new AirPods, and I
thought they did a good job on the AirPods. I
thought the new Apple Watches were sort of mediocre updates.
Speaker 2 (17:16):
My main question, as someone who studied languages way back when,
is that the airports, in a very sort of slick
presentation that they delivered, showed this idea of simultaneous translation
for the AirPods. I mean, also, it's had for some
time the idea of helping people with hearing loss, but
I thought simultaneous translation in the era of chat GPT
(17:39):
as well, that seemed really pretty novel. If it really
works that.
Speaker 10 (17:44):
Way, Yeah, the simultaneous translation is very cool. It does
work quite well. The only question is and how many
people are needing to use that feature?
Speaker 2 (17:54):
Right?
Speaker 10 (17:54):
It doesn't seem like a feature that's going to get
super wide adoption a lot of use. There's not many
use cases where you would need that translation feature, especially
when you think about it, You're going with another country, right,
and how many people are going to run into that
you need to talk to in their language that already
have aeropods in their ears. So certainly it's something that
(18:21):
a lot of people are gonna want to use a demo,
but maybe not something that's going to be used on
a daily basis in practice. The heart rate feature is
pretty cool. They added these to the power Beats in January.
Now they're bringing them to the Aeropods Pro. It's going
to get more people on the Apple ecosystem, I think,
and maybe interest people even and upgrading to Apple Watch
(18:42):
or fitness subscriptions and what have you.
Speaker 1 (18:45):
I want to come back to the iPhone Air for
a moment because some of the issues that you flagged
around it, like things like battery life. Is this a
first iteration of a product that will evolve and could
become a much bigger setup for Apple down the line.
Speaker 10 (18:59):
Well, I think about what the MacBook Air was. It
was a device that started off with mediocre battery life,
terrible processing power that it was super thin and light
and marketable. Right, You're going to see the same thing
happen all iPhones one day are going to be like
the iPhone Air. The iPhone Air is sort of exactly
what Apple wants to hit one day. It's just going
to take a while for them to get the performance
(19:21):
and the camera technology for a profone in that slim
down form factor.
Speaker 2 (19:26):
Let's think money. Apple actually called this launch event, they
named it or dropping. Investors were not particularly impressed. The
share price of Apple went down just after that presentation.
And then you also have to think about the flip
side of that, the price tag of the hardware that
is on offer. How do you think about it in
(19:47):
terms of you know the numbers.
Speaker 10 (19:50):
Well, what you got was a silent price hike. So
instead of hiking prices, the iPhone air came in at
one thousand US, which is one hundred dollars more than
the sixteen plus it replaces. And fine. The other thing
to note is that the fifteen or the seventeen pro
I should say, comes in at eleven hundred US, that
(20:12):
is one hundred dollars increase year of a year from
the sixteen pro. But they are doubling the storage at
the starting capacity, and so it's basically no price increase.
That's why I call it a silent price increase. And
then you have watches and AirPods saying stagnan in terms
of pricing, the AirPods at to fifty, the watch se
at two fifty, and so forth. But the big story
(20:35):
here is that investors really need to reset their expectations.
I mean, you're not going to see major AI innovation
for a couple of years from now. You're not going
to see a big update tail serie until next year.
And so the question is why are you an Apple stock?
Don't you understand that Apple's a hardware company and this
is their hardware showcase and they make their money from
(20:56):
hardware and what they delivered here. Sure, there's I have
serious concerns with the iPhone Air. I have criticisms with
the iPhone promas. I think they could have done more
on the Apple watches. But these are going to sell,
and they're going to sell on big quantities, and so
I think investors should be pretty pleased here.
Speaker 1 (21:13):
This is Bloomberg Daybreak Europe, your morning brief on the
stories making news from London to Wall Street and beyond.
Speaker 2 (21:19):
Look for us on your podcast feed every morning, on Apple,
Spotify and anywhere else you get your podcasts.
Speaker 1 (21:25):
You can also listen live each morning on London DAB Radio,
the Bloomberg Business app, and Bloomberg dot Com.
Speaker 2 (21:31):
Our flagship New York station is also available on your
Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty.
I'm Caroline Hepka.
Speaker 1 (21:40):
And I'm Stephen Carroll. 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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