Michael Barr, Bloomberg, Karen Moscow discussed on Bloomberg Daybreak

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But I'm Karen Moscow, U.S. stock index futures pairing their losses now little change in a volatile session after the Federal Reserve signaled a delicate balancing act that would see inflation busting rate hikes continue despite a weakening economy. We check the markets every 15 minutes throughout the trading day on Bloomberg and now futures are little change to higher the Dax in Germany is up 7 tenths of a percent and the ten year treasury is a three 30 seconds yield 2.88%. The yield on the two years at 3.28%. Now I'm actually screwed oil is up 1% or 90 cents at $89 once sent a barrel. Co makes go that quarter percent or $4 ten cents at 1780, 80 announced. The Euro 1.0164 against the dollar British pound 1.2044 in the N one 35.30 and Bitcoin this morning tire at four tenths percent at $23,500. That's a Bloomberg business flash. Now here's Michael Barr with more on what's going on around the world, Michael. Karen, thank you very much. A group of media organizations urged a Florida judge to release most of an FBI affidavit that helped the Justice Department obtain a search warrant for former president Donald Trump's Mar-a-Lago resort. The DoJ says the document must remain sealed to protect the investigation. The U.S. and Taiwan will start formal talks on a trade and economic initiative, following through on a long planned promise to deepen ties, amid opposition from China. In baseball, the Yankees won with a dramatic Grand Slam against the rays 8 7 in ten innings. The mets beat the braves 9 7, the Red Sox and a's one. The nationals Orioles and giants lost. Global news, 24 hours a day on air and on Bloomberg quicktake, powered by more than 2700 journalists and analysts and more than a 120 countries, Michael Barr, this is Bloomberg jump. Michael, thank you. We are lying from the Bloomberg Internet to brokers studios where it is 5 49 on Wall Street. Apple, aiming to hold it a launch event, September 7th to unveil the iPhone 14 line of products. Let's take a deeper dive this morning. We're joined live now by Bloomberg quick take anchor Alex Webb. Do I really, really need an iPhone 14? Alex. You really depends when you go. Does anybody else? Yeah. I think that this idea that you need to refresh your iPhone every year has long since gone, but you even need to every two years is long gone. I've got a three year old iPhone, I'm probably going to do it this year now. This is supposed to be a more sizable upgrade than was the 13, then was last year's. Usually, you would expect that to drive a big upswell in sales numbers. There was a great scoop that our colleagues Mark gurman and Debbie Wu had last week, which said that actually they expect production numbers to be flat year on year. Which clearly then suggests something about the economic climate and people's discretionary income in the context of inflation. With the economic climate that we're talking about with inflation, do we know what the pricing is going to be? We don't, but likely to be in the order of a $1000 for the base price for the top line model. Sometimes the way that apple tends to really make the margin on this stuff is on the memory, right? They will charge an extra $100 for another sort of 124 gigabytes of memory. The chip that actually underpins that memory probably cost them in the order of 20. There's a huge gross margin on the memory piece. That is where if they offer larger memory options, that's probably where we'll start to see the average price per unit dragged upwards. Does anybody actually pay that upfront or is it part of the package they get with their carrier? A lot of people do just buy the iPhone straight from Apple because sometimes if you sometimes if you unpick the economics, it does work out cheaper in the long run just to buy it straight from the store. Particularly if you've got it depends on the contract you have obviously a different market by personally just buy it from Apple. I get financing from Apple, which Apple also provides and normal percent financing. So it worked out quite cost effective with the consumer. But that has also been one of the problems in recent years for the carriers that selling the phones was a nice little earner for them, but because Apple has its own financing people have started to realize that it's more cost effective to go straight to source. Okay, let's talk about the other products. Well, first of all, what is the iPhone 14 have that I need at this point and what about the other products as well? As ever with the each new model iPhone, it's going to have a slightly better camera and a faster process. The styling is likely to be similar to the 13 with the square edges. And the few little bells and whistles that perhaps we don't yet know about. They're going to likely eliminate the mini version of the handsets and add a model with a 6.7 inch screen, which will be the first time Apple launches a non so called pro iPhone with a display of that size. Did the notch that appears on the front will change shapes slightly and it will be a sort of a pill shaped hole. That's what sources are telling. Mark gurman, pill shaped hole and a hole punch sized area for the camera. So that probably is going to be in terms of form factor the biggest change. It reminded everybody how important iPhones are to Apple. They all, I mean, very significant part of that business, but not as big as they were before. Historically, it used to be about 70 or two thirds of their revenue fundamentally. Now it's about 50% of their revenue. They've managed to bring that down over the past 6 7 years as they've not only boosted the share that they get from their services business, which that is that the App Store, Apple music, Apple TV plus. That's now on almost $70 billion business. But also what they

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