Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.
Speaker 2: Good morning.
Speaker 1: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 1: stories we're following today.
Speaker 3: Karen, the lift in futures is getting a lot of
Speaker 3: help this morning from Apple. That stock is rallying six
Speaker 3: percent in early training. The company announced the biggest stock
Speaker 3: buyback in US history, and although Apple's revenue fell more
Speaker 3: than four percent in the quarter, it was better than
Speaker 3: analysts predicted. Mark German covers Apple for Bloomberg News.
Speaker 4: Big picture here is that Apple's doing a little bit
Speaker 4: better than feared.
Speaker 5: Right.
Speaker 4: You still see declines across all of their segments other
Speaker 4: than the mac and services, but a little bit better
Speaker 4: than what we had anticipated, or not what we had anticipated,
Speaker 4: but what had some anticipated in China, certainly a lot
Speaker 4: of optimism around artificial intelligence.
Speaker 3: In Bloomberg's Mark German says Apple predicted a return to
Speaker 3: revenue growth in the current period. As for that stock buyback,
Speaker 3: Apple's board approved an additional one hundred and ten billion
Speaker 3: dollars in share repurchases and also raised its quarterly dividend
Speaker 3: for the twelfth year in a row.
Speaker 6: Well, Nathan.
Speaker 1: In addition to earnings, the economy remains in focus, and
Speaker 1: later this morning we will get that jobs are poored
Speaker 1: for the month of April. Economists are forecasting a gain
Speaker 1: of two hundred and forty one thousand jobs and the
Speaker 1: unemployment rate to hold steady at three point eight percent.
Speaker 1: We get a preview from Bloomberg's Michael McKee.
Speaker 6: One reason the Fed feels that can stay on hold
Speaker 6: is that the labor market remains strong. The question today's
Speaker 6: data may help answer is whether it is too strong.
Speaker 6: Unemployment has remained below four percent for more than two years,
Speaker 6: job growth has averaged over two hundred thousand a month
Speaker 6: for more than three years. Forecasters see no change coming
Speaker 6: in the April figures, so the key question maybe what
Speaker 6: happens with wages. Data earlier this week showed compensation still
Speaker 6: rising at a pace that could trigger higher inflation. Michael McKee,
Speaker 6: Bloomberg Radio.
Speaker 3: All right, Mike, Thanks, and ahead of that job's report,
Speaker 3: bond traders have pulled forward expectations for the Fed's first
Speaker 3: full interest rate cut by a month to November. The
Speaker 3: recalibration comes with the best two day rally for short
Speaker 3: end treasury since January, following the Fed's latest policy meeting
Speaker 3: on Wednesday.
Speaker 1: Well, now, Nathan an update on a possible bidding war
Speaker 1: in the mining industry. Shares of Anglo American are up
Speaker 1: more than three percent, and this follows a Reuter's report
Speaker 1: that Glencore is studying an approach for the miner. Anglo
Speaker 1: last week rejected at thirty nine billion dollar all stock
Speaker 1: proposal from BHP Okay Keren.
Speaker 3: Now, let's get to the latest on the college protests
Speaker 3: across the country. Police have now arrested close to twenty
Speaker 3: two hundred people over the last few weeks. We get
Speaker 3: the latest from Bloomberg Zed Baxter.
Speaker 7: Arrests in every corner of the nation, and President Joe
Speaker 7: Biden directly addressing it, saying two principles at play.
Speaker 8: First is the right to free speech and for people
Speaker 8: to peacefully assemble and make their voices heard. The second
Speaker 8: is the rule of law.
Speaker 2: Both must be upheld.
Speaker 7: He says. The two have to balance, so protest, but
Speaker 7: not be violent or hateful at Baxter Bloomberg Radio all right.
Speaker 1: Ed, thanks, But Columbia University says thirteen the forty four
Speaker 1: people who occupied and barricaded themselves inside Hamilton Hall had
Speaker 1: no affiliation with the Institution. New York City Mayor Eric
Speaker 1: Adams says outsiders are counted for almost a third of
Speaker 1: the one hundred and twelve people arrested in a crackdown
Speaker 1: that occurred at Columbia on Tuesday evening.
Speaker 3: Than Karen with Some universities that are holding graduation ceremonies
Speaker 3: this weekend are trying to keep a lid on potential disruptions.
Speaker 3: The University of Michigan says staff and security officers are
Speaker 3: ready to respond to any incidents. The university says interfering
Speaker 3: with commencement will not be considered a free speech Indiana
Speaker 3: University is designating protest zones outside graduation venues, and Northeastern
Speaker 3: Universities holding its commencement at Fenway Park well Nathan.
Speaker 1: A second week of testimony wraps up today and former
Speaker 1: President Trump's Manhattan hush money trial. The prosecution's star war witness,
Speaker 1: Michael Cohen, still hasn't taken this stand, but the jury
Speaker 1: did hear a secret tape of Trump's former lawyer discussing
Speaker 1: a payment with the former president. It didn't go into details,
Speaker 1: but it was recorded around the time one hundred and
Speaker 1: fifty thousand dollars was paid to former Playboy playmate Karen
Speaker 1: McDougal and Karen.
Speaker 3: Jurors also heard from Keith Davidson. He's the lawyer who
Speaker 3: represented Stormy Daniels when she received one hundred and thirty
Speaker 3: thousand dollars from Michael Cohen. Palm Beach County State Attorney
Speaker 3: Dave Arenberg says there was one bombshell moment in Davidson's testimony.
Speaker 9: There's this very powerful text message that came out in
Speaker 9: trial where Keith Davidson texted, what have we done after
Speaker 9: Trump wins the election, acknowledging that everything they did was
Speaker 9: to help his election, and now it came to fruition
Speaker 9: and now there's buyer's remorse.
Speaker 3: And Palm Beach County State Attorney Dave Arenberg says Trump's
Speaker 3: defense has worked to poke holes in the credibility of
Speaker 3: prosecution witnesses and show the former president was trying to
Speaker 3: protect his reputation and family, not his campaign, by keeping
Speaker 3: the women quiet well.
Speaker 1: Nathan Donald Trump may be spending most days in a
Speaker 1: courtroom in Manhattan, but he's also focusing on winning the
Speaker 1: White House this fall. In Bloomberg's Amy Morris has.
Speaker 10: More, Trump is sharpening his focus on a possible running
Speaker 10: mate by bringing top contenders for the job to an
Speaker 10: exclusive donor retreat in Palm Beach this weekend, along with
Speaker 10: hundreds of deep pocketed GOP backers. Sources tell Bloomberg the
Speaker 10: shortlist includes Ohio Senator jd Vance, North Dakota Governor Doug Burgham,
Speaker 10: Florida Senator Marco Rubio, and South Carolina Senator Tim Scott.
Speaker 10: Trump's campaign says nobody knows when or who Trump might choose,
Speaker 10: and Trump has said he'll make his decision closer to
Speaker 10: the Republican National Convention in July in Washington. Amy Morris,
Speaker 10: Bloomberg Radio.
Speaker 2: All right, Amy, thanks.
Speaker 3: As for President Biden, he's making a move to court
Speaker 3: Latino communities. The Biden administration is extending the Affordable Care
Speaker 3: Act to people covered under the Deferred Action for Childhood
Speaker 3: Arrivals program, known as DACA. That's the program that provides
Speaker 3: work permits and protection from deportation to people who came
Speaker 3: to the US as undocumented children. About one third of
Speaker 3: doctor recipients, known as dreamers, don't have health insurance. The
Speaker 3: administration now expects one hundred thousand people to sign up.
Speaker 1: Well Nathan, another whistleblower who raised safety concerns at Boeing
Speaker 1: has died. Forty five year old Josh Dean was a
Speaker 1: former quality auditor and Boeing supplier Spirit Aerosystems. The Seattle
Speaker 1: Time says Dean was hospitalized at developing breathing problems just
Speaker 1: over two weeks ago. Dean's death follows the passing of
Speaker 1: another Boeing whistleblower, John Barnett, who reportedly died from a
Speaker 1: self inflicted wound in March. Time. Now for a look
Speaker 1: at some of the other stories making news in New
Speaker 1: York and around the world, and for that we're joined
Speaker 1: by Bloomberg's Michael Barr.
Speaker 2: Michael, good morning, Good morning Karen.
Speaker 11: A tanger fire on the Connecticut Highway turn traffic into
Speaker 11: a parking lot for motorists like this truck driver.
Speaker 6: I'm coming from New Haven and you've got stuck out
Speaker 6: here for six hours so far.
Speaker 11: Fortunately no one was heard, but Governor Ned Lamont says
Speaker 11: parts of On ninety five linking New England and New
Speaker 11: York will be closed for days. More from Bloomberg's Charlie Pellett.
Speaker 2: The tanker truck was filled with gasoline. It burst into
Speaker 2: flames in a three vehicle crash on I ninety five
Speaker 2: in Norwalk, closing the East Coast's main north South highway
Speaker 2: and causing major traffic jams. The crash caused damage to
Speaker 2: the bridge above it, which the governor said will need
Speaker 2: to be demolished and replaced. It is reminiscent of last
Speaker 2: year's deadly accident in Philadelphia along I ninety five, when
Speaker 2: a tractor trailer carrying gasoline lost control and caught fire,
Speaker 2: destroying a section of the highway. In New York, Charlie
Speaker 2: Pellett Bloomberg.
Speaker 11: Radio, a home in South River, New Jersey exploded last night,
Speaker 11: leaving at least one person dead. The home was completely destroyed.
Speaker 11: The Middlesex County Prosecutors says the person killed a sixty
Speaker 11: two year old Kevin Gilbert, and the second man was
Speaker 11: taken to the hospital for treatment. Democrats that Governor Katie
Speaker 11: Hobbs has signed the repeal of Arizona's Civil War era
Speaker 11: near total ban abortion. Hobbs hailed it as a proud
Speaker 11: moment for Arizona compared to other states with strict abortion laws.
Speaker 4: Today, we are doing what twenty three governors and fifty.
Speaker 1: Five legislatures refused to do, and I am so proud
Speaker 1: to be the ones that got this job done.
Speaker 11: Arizona still has a law of banning abortions. After fifteen
Speaker 11: weeks on the books, Ukraine's President Vladimir Selensky appealed for
Speaker 11: a weapons package to be delivered by the UK as
Speaker 11: soon as possible. In a meeting with Foreign Secretary David Cameron,
Speaker 11: Zelensky updated Cameron on the war with Russia during a
Speaker 11: meeting in Kiev. President Joe Biden will award the nation's
Speaker 11: highest honor to several people today, the Presidential Medal of Freedom.
Speaker 11: Nineteen individuals will received the award, including Nancy Pelosi, the
Speaker 11: first woman to become House speaker. Global News twenty four
Speaker 11: hours a day and whenever you want it with Bloomberg
Speaker 11: News Now. I'm Michael Barr, and this is Bloomberg Karen Burray.
Speaker 1: Michael Burr, thank you time now for the Bloomberg Sports
Speaker 1: Update with John Stashaur.
Speaker 2: John, Good morning, Good morning, Karen.
Speaker 12: It was only a first round series, but there was
Speaker 12: so much drama between the Knicks and Sixers. It will
Speaker 12: be a memorable one and Knicks fans will remember big
Speaker 12: three pointers down the stretch of Game six in Philly.
Speaker 13: Ball, rebound Heart looks to push a head to te
Speaker 13: Vincenzo one to one with Maxie steps through, kicks it out,
Speaker 13: brunts it again, knocks it down two in a row
Speaker 13: for Jalen Brugs it shot Bocket eight, bucks it up top,
Speaker 13: Heart wide open, three pointer.
Speaker 2: Fires away, knocks it down.
Speaker 12: Joss Hart puts the Nicks up by three waf and
Speaker 12: that Heart three snapped a tie with twenty five seconds left.
Speaker 12: Nicks hit their free throws at the end. They beat
Speaker 12: the Sixers one eighteen one fifteen, won the series four two.
Speaker 12: Jalen Brunson forty one points. He's the first player since
Speaker 12: Michael Jordan thirty five years ago to have three straight
Speaker 12: forty plus point games to close out of series.
Speaker 6: He had help.
Speaker 12: All five Knick starters were in double figures. Dante DiVincenzo
Speaker 12: played the whole game, had his best game with twenty three.
Speaker 12: Joel Embi led the Sixers with thirty nine. After Tyrese
Speaker 12: Maxi's heroics in Game five, when he scored forty six,
Speaker 12: he was quiet for most of Game six.
Speaker 11: Knicks will not take on Indiana.
Speaker 12: The Facers won their game six at home by twenty
Speaker 12: two over Milwaukee, who didn't have Giannis out the Cumpo
Speaker 12: the entire series. Game one at the Garden Monday night,
Speaker 12: the NHL finally announced the Rangers Carolina series will start
Speaker 12: at MSG on Sunday. They haven't yet said the time.
Speaker 12: They'll be at game seven Tomorrow night in Boston. Toronto,
Speaker 12: who won Game five two to one, took Game six
Speaker 12: to two to one. The Bruins goal came with one
Speaker 12: second left, wild comeback win for the match. They won
Speaker 12: seven to six. In our Francisco, Lindor two run hit
Speaker 12: the tops of the tenth and eleventh innings. Both ended
Speaker 12: with Starling Marte throwing out a Cubs runner at the plate.
Speaker 12: Yankees lost in Baltimore seven to two, so the Orioles
Speaker 12: took three to four. They held the Yanks to six
Speaker 12: runs in the series. Nationals lost six to nothing to Texas.
Speaker 12: Giants beat the Red Sox. John Starshawer Bloomberg Sports, Karen Nathan.
Speaker 8: Coast to Coast on Bloomberg Radio, nationwide on Sirius XM,
Speaker 8: and around the world on Bloomberg dot Com and the
Speaker 8: Bloomberg Business app. This is Bloomberg Daybreak Good morning.
Speaker 3: I'm Nathan Hager as we wrap up big tech earnings
Speaker 3: with results from Apple. The iphonemaker did come out with
Speaker 3: better than expected sales and what was already expected to
Speaker 3: be a down quarter, and it's offering the biggest stock
Speaker 3: buy back in US history. That's certainly giving the shares
Speaker 3: a lift this morning for one of these results and
Speaker 3: where Apple goes from here. We're joined by Bloomberg Intelligence
Speaker 3: senior tech analyst Matthew Bloxham. Matt, good morning. So it
Speaker 3: was slight beats for the most part all around, but
Speaker 3: the bar was pretty low for Apple, right.
Speaker 14: Yeah, it was, And I think the story of the
Speaker 14: day and today likely too is China. Yeah, that's been
Speaker 14: in focus for them for quite a few weeks now,
Speaker 14: people seeing potentially quite weak shipment sales for them in
Speaker 14: the first quarter of the calendar year, losing share to Huawei.
Speaker 14: But actually what we saw from China was better than
Speaker 14: expected performance and I think optimistic commentary from Timkok on
Speaker 14: the call, which Alice was struggling to square away. I mean,
Speaker 14: essentially China, which is about eighteen percent of their revenue,
Speaker 14: fell about eight percent in the quarter. The analysts we're
Speaker 14: looking for about eleven percent decline, and Timo was saying
Speaker 14: on the call that actually the iPhone cells were up
Speaker 14: year on year and that actually in terms of preferences,
Speaker 14: it's still doing really well. He said that the iPhone
Speaker 14: fifteen and Promacs take the top two spots in terms
Speaker 14: of preferred smartphones in urban China, and he pointed to
Speaker 14: the increasing shift towards the middle class in the country, implying,
Speaker 14: I think that you know, they're confident that over the
Speaker 14: mid term, the still a strong opportunity for Apple in
Speaker 14: the China market.
Speaker 3: Do you buy the optimism that we're hearing from the
Speaker 3: CEO when it comes to growth in the middle class
Speaker 3: sector in China when we do continue to see so
Speaker 3: many headwinds for the Chinese economy.
Speaker 14: Yeah, I mean, I think it's an issue that's going
Speaker 14: to take some convincing, as you say, given the kind
Speaker 14: of the mixed noises on the economy, but also the
Speaker 14: tensions between China and the US, and the fact that
Speaker 14: the likes of Huawei local smartphone brand and other local
Speaker 14: brands have really been kind of stepping into that void
Speaker 14: and exploiting the opportunity. So I think is by no
Speaker 14: means going to be an easy pathway for Apple in
Speaker 14: that market. But you know, they need to keep innovating
Speaker 14: product and I think whilst Chinese consumers see the cachet
Speaker 14: of the Apple brand as something aspirational that should keep
Speaker 14: them in the mix.
Speaker 3: And obviously the one hundred and ten billion dollars stock
Speaker 3: by announcement is getting so much attention this morning. I
Speaker 3: wonder if you think that's the right move when Apple
Speaker 3: is still trying to get back to this promised growth
Speaker 3: projectory of trajectory of at least single digit growth this period.
Speaker 14: Yeah, I mean, you know, it's about four percent of
Speaker 14: their market caps, so you know, I think, given the
Speaker 14: reality is that Apple isn't an out and outgrowth stook anymore,
Speaker 14: you need to be kind of offering something and obviously
Speaker 14: by doing a buyback rather than obviously they have a dividend,
Speaker 14: but it's very small, it's about a half a percent.
Speaker 14: You'll maybe that you know that actually the buy back
Speaker 14: helps to give earnings growth a little bit of a
Speaker 14: momentum whilst they wait for the kind of the product
Speaker 14: refreshes to kind of help the top line. So yes,
Speaker 14: getting a lot of focusing. The reality is that Apple
Speaker 14: is a huge cash flow generating machine that's still got
Speaker 14: a net cash balance that you know isn't going to
Speaker 14: disappear anytime soon, and that gives some strategic options you know,
Speaker 14: for the future about you know, investing in things like
Speaker 14: AI for example, and possibly looking at bigger acquisitions for
Speaker 14: the down the line that kind of keep them relevant
Speaker 14: in the mid to long term.
Speaker 3: And to your point in our last minute here, Matt,
Speaker 3: there's going to be a lot more attention on the
Speaker 3: product announcement coming out next week and the focus on AI.
Speaker 3: How high is the bar for Tim Cook to really
Speaker 3: come through on this idea of a next big thing
Speaker 3: finally for Apple.
Speaker 14: Yeah, I mean I think it's pretty high that this
Speaker 14: is the stock that's still trading on twenty five times
Speaker 14: forward earnings. So maybe not so much the iPad announcement
Speaker 14: next week, but certainly the June updates on their AI
Speaker 14: roadmap is going to be really important because I think
Speaker 14: that will kind of connect all the way into all
Speaker 14: of their future product pleasesn't including the next iPhone refresh
Speaker 14: in September. So I think they really do need to
Speaker 14: give a convincing view that you know that the GENII
Speaker 14: offering from Apple across its products and services, is going
Speaker 14: to bring more people into the ecosystem, and it's going
Speaker 14: to prompt assisting customers to maybe upgrade Sona, perhaps shift
Speaker 14: to a more expensive device, and you get more momentum
Speaker 14: in the top line.
Speaker 5: This is Bloomberg Daybreak Today, your morning brief on the
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