Investors Take Shine off Apple's AI Plans; CPI and Fed On Tap

Bloomberg Audio Studios, podcasts, radio news. 0:00:10.039 --> 0:00:13.239 Good morning, I'm Nathan Hager and I'm Amy Morris. Here 0:00:13.320 --> 0:00:15.200 are the stories we're following today. 0:00:15.640 --> 0:00:16.000 Amy. 0:00:16.079 --> 0:00:19.479 Reaction continues to pour into Apple's unveil of its long 0:00:19.480 --> 0:00:23.760 awaited new artificial intelligence features, including a partnership with chet 0:00:23.800 --> 0:00:28.800 GPT maker OpenAI. Apple stock fell almost two percent yesterday. 0:00:28.800 --> 0:00:31.720 It's down another half percent in early trading. A new 0:00:31.760 --> 0:00:35.519 AI platform called Apple Intelligence was the highlight of the 0:00:35.520 --> 0:00:40.600 company's Worldwide Developers Conference presentation. Here's Apple CEO Tim Cook. 0:00:41.080 --> 0:00:45.560 Recent developments and generative intelligence and large language models offer 0:00:45.840 --> 0:00:50.360 powerful capabilities that provide the opportunity to take the experience 0:00:50.400 --> 0:00:55.640 of using Apple products to new heights. Introducing Apple Intelligence, 0:00:56.200 --> 0:00:59.720 the new personal intelligence system that makes your most personal 0:01:00.000 --> 0:01:03.440 products even more useful and delightful, Tim. 0:01:03.280 --> 0:01:06.480 Cook says the technology will help summarize text, create a 0:01:06.560 --> 0:01:09.959 regional images, and retrieve the most relevant data when users 0:01:10.000 --> 0:01:13.200 need it. Bloomberg Chief Apple corresponded, Mark German says the 0:01:13.240 --> 0:01:16.839 company did not gain ground though on tech peers like Alphabets, 0:01:16.840 --> 0:01:18.160 Google and Microsoft. 0:01:18.680 --> 0:01:22.280 You saw nothing today that's better than the competition. You 0:01:22.319 --> 0:01:26.920 saw nothing today that's different from the competition except marketing 0:01:27.040 --> 0:01:30.520 and a focus on privacy. Right, So that's the difference here. 0:01:31.080 --> 0:01:33.600 They're not the first, but they're also not the best, 0:01:33.800 --> 0:01:36.640 and they're not the most advanced. They're here extremely late, 0:01:37.240 --> 0:01:39.440 and they showed up to the party without a gift. 0:01:39.840 --> 0:01:43.160 Bloomberg's Mark German says. Apple also announced plans to launch 0:01:43.200 --> 0:01:47.039 its Vision Pro headset internationally. Pre Orders will begin in China, 0:01:47.120 --> 0:01:49.280 Hong Kong, Japan, and Singapore on. 0:01:49.240 --> 0:01:53.480 Thursday, and Elon Musk says he'll ban Apple devices from 0:01:53.480 --> 0:01:57.200 his companies if OpenAI software is integrated into the products 0:01:57.320 --> 0:02:00.560 at the operating system level. We get more with Bloomberg's 0:02:00.600 --> 0:02:01.440 Charlie Palette. 0:02:01.520 --> 0:02:05.200 The remarks followed a presentation by Apple where it said 0:02:05.320 --> 0:02:10.160 customers would have access to open AI's chat GPT chatbot 0:02:10.440 --> 0:02:14.480 through the Siri Digital Assistant. Apple plans to roll out 0:02:14.520 --> 0:02:17.480 the capabilities as part of a suite of new AI 0:02:17.560 --> 0:02:21.720 features later this year. Musk co founded open Ai, but 0:02:21.800 --> 0:02:24.560 had a falling out with the San Francisco based startup. 0:02:24.800 --> 0:02:28.840 Writing on x, the social network that he owns, Musk said, quote, 0:02:28.840 --> 0:02:33.240 if Apple integrates open Ai at the OS level, then 0:02:33.240 --> 0:02:37.400 Apple devices will be banned at my company's in New 0:02:37.480 --> 0:02:39.400 York Charlie Palett Bloomberg Radio. 0:02:39.720 --> 0:02:42.480 Okay, Charlie, thank you. Turning to the economy, we are 0:02:42.560 --> 0:02:45.240 just a day away from a double dose of economic 0:02:45.320 --> 0:02:48.160 news that could jolt markets. Tomorrow morning we get the 0:02:48.240 --> 0:02:52.560 latest reading on consumer prices, followed by an afternoon FED decision. 0:02:52.760 --> 0:02:55.840 Bloomberg's Michael McKee says the inflation print could have a 0:02:55.919 --> 0:02:57.200 big impact on markets. 0:02:57.480 --> 0:03:00.320 The CPI number is going to set the trading town 0:03:00.600 --> 0:03:04.960 for the summer because we won't get enough other data 0:03:05.080 --> 0:03:09.919 to really change people's minds over the rest of the summertime, 0:03:10.160 --> 0:03:12.600 because we've got other events that will come in and 0:03:12.880 --> 0:03:14.880 affect people, so it's not gonna be as much about 0:03:14.880 --> 0:03:15.200 the data. 0:03:15.320 --> 0:03:18.359 Bloomberg's Mike McKee says, since it's June twenty twenty two, 0:03:18.400 --> 0:03:22.560 peak headline inflation has slowed by five point seven percentage points. 0:03:23.000 --> 0:03:27.000 Had some key economic data overseas this morning. UK unemployment 0:03:27.080 --> 0:03:30.320 has unexpectedly risen to the highest in more than two 0:03:30.360 --> 0:03:33.519 and a half years. Unemployment rose to four point four 0:03:33.560 --> 0:03:36.600 percent in the three months through to April, while pay 0:03:36.600 --> 0:03:39.480 increase is held steady. The mixed data is expected to 0:03:39.520 --> 0:03:42.840 complicate the Bank of England's decision about when to cut 0:03:42.880 --> 0:03:44.440 interest rates well staying in. 0:03:44.360 --> 0:03:47.520 Europe, amy Bill Gross says the Eurozone is the place 0:03:47.560 --> 0:03:50.680 to look for opportunities. His assessment came in the aftermath 0:03:50.760 --> 0:03:53.640 of election results showed a right word shift by the 0:03:53.640 --> 0:03:56.760 regent's voters. Bill Gros spoke to Bloomberg the day after 0:03:56.800 --> 0:04:00.160 two of Europe's most influential leaders, Francis Emanuel Macrome and 0:04:00.240 --> 0:04:04.000 Germany's ole Off Schultz, suffered surprise defeats in Sunday's European 0:04:04.080 --> 0:04:07.000 Union Parliament elections at the hands of the far right. 0:04:07.480 --> 0:04:11.040 I think in terms of an attraction German tenure boons 0:04:11.120 --> 0:04:15.360 and French oates the tenure. There there are spreads of 0:04:15.480 --> 0:04:19.080 narrowed significantly in the past month or two relative to 0:04:19.120 --> 0:04:24.120 treasuries and today as well by eight or ten basis points. 0:04:24.160 --> 0:04:28.880 So there's coming to a point where European bonds are 0:04:29.520 --> 0:04:32.640 more attractive than treasury bonds in my opinion. 0:04:32.400 --> 0:04:34.800 And according to Bill Gross, the recent market reaction to 0:04:34.880 --> 0:04:38.760 other elections in Mexico, India, and South Africa also offers 0:04:38.800 --> 0:04:41.480 a guide for how the US campaign might affect assets 0:04:41.680 --> 0:04:42.440 come November. 0:04:42.920 --> 0:04:45.680 And speaking of the US election, Donald Trump is slated 0:04:45.680 --> 0:04:48.600 to meet with Senate Republicans today before he heads off 0:04:48.640 --> 0:04:51.640 to a meeting with prominent CEOs at the Business Roundtable 0:04:51.680 --> 0:04:55.000 in Washington. Bloomberg's At Baxter has those details. 0:04:55.320 --> 0:04:58.000 This is the latest effort to plot out priorities if 0:04:58.040 --> 0:05:01.240 Trump wins, and also the pathway to get there. In 0:05:01.279 --> 0:05:04.400 an email obtained by Bloomberg, Senator John Burrosso, part of 0:05:04.440 --> 0:05:08.160 the GOP leadership, made the invite, saying it will be 0:05:08.240 --> 0:05:12.040 helpful to hear directly from Trump about his summer and 0:05:12.160 --> 0:05:16.239 to share strategic planning. The CEO meeting is being hosted 0:05:16.240 --> 0:05:19.320 by the Business Roundtable in Washington, and of course Trump 0:05:19.360 --> 0:05:23.160 is hoping for backing and monetary help heading into November. 0:05:23.760 --> 0:05:26.000 Ed Baxter, Bloomberg Radio. Okay and thank you. 0:05:26.040 --> 0:05:28.480 Meanwhile, former President Trump set for an interview with New 0:05:28.560 --> 0:05:31.440 York City probation officers yesterday for about a half hour. 0:05:31.839 --> 0:05:34.200 That interview will help a judge decide how much time, 0:05:34.320 --> 0:05:38.400 if any, Trump spends behind bars for falsifying business records. 0:05:38.440 --> 0:05:41.360 That meeting was conducted virtually the former president was at 0:05:41.360 --> 0:05:43.760 his home in Florida, the officers were in New York, 0:05:44.040 --> 0:05:47.920 sources tell Bloomberg News. Trump's lawyer also participated sentencing set 0:05:47.960 --> 0:05:50.960 for July eleventh. Trump and his legal team have already 0:05:51.000 --> 0:05:52.960 taken steps to file an appeal. 0:05:53.279 --> 0:05:55.279 And now to a story that could fuel the debate 0:05:55.279 --> 0:05:59.200 about whether the Supreme Court has become politicized. Justice Samuel 0:05:59.240 --> 0:06:02.680 Alito and Justice John Roberts were secretly recorded at a 0:06:02.720 --> 0:06:06.000 High Court gala last week by Lauren Windsor, a woman 0:06:06.080 --> 0:06:09.840 claiming to be a conservative Catholic. They discussed whether compromise 0:06:10.000 --> 0:06:13.240 is possible between the left and right. Justice Alito told 0:06:13.240 --> 0:06:15.520 the woman one side or the other is going to win, 0:06:15.680 --> 0:06:17.120 and then the woman said this. 0:06:17.480 --> 0:06:20.640 I think that the solution really is like winning the 0:06:20.680 --> 0:06:24.359 moral argument, Like people in this country who believe in 0:06:24.400 --> 0:06:27.000 God have got to keep fighting for that to return 0:06:27.040 --> 0:06:31.280 our country to a place of a godly dast Oh. 0:06:31.320 --> 0:06:33.320 I agree with you, I agree with you. 0:06:33.279 --> 0:06:37.280 That conversation with Justice Alito was posted online by Windsor, 0:06:37.279 --> 0:06:40.520 who describes herself as an advocacy journalist. The New York 0:06:40.560 --> 0:06:43.440 Times reports Chief Justice John Roberts pushed back in his 0:06:43.560 --> 0:06:46.680 conversation with Windsor when she asked him whether the Court 0:06:46.720 --> 0:06:49.680 should move the country toward a more moral path. The 0:06:49.880 --> 0:06:52.640 charity that hosted the GALA issued a statement saying it 0:06:52.680 --> 0:06:59.520 condemns the surreptitious recording of justices at the event. Time 0:06:59.600 --> 0:07:01.320 now for a look at some of the other stories 0:07:01.320 --> 0:07:03.520 making news in New York and around the world, and 0:07:03.560 --> 0:07:06.880 for that we're joined by Bloomberg's Michael bar Good morning, Michael. 0:07:06.600 --> 0:07:08.920 Good morning Amy. It was supposed to be the first 0:07:08.920 --> 0:07:12.480 in the nation congestion toll in New York City. Now 0:07:12.600 --> 0:07:15.160 the city's transit chief is speaking out after it was 0:07:15.200 --> 0:07:18.720 put on hold by New York Governor Kathy Hokel last week. 0:07:19.040 --> 0:07:22.040 Much of the money was to go to the city's bus, subway, 0:07:22.080 --> 0:07:26.920 and commuter rail system. Modernization projects like electric buses and 0:07:27.080 --> 0:07:31.800 accessible stations are on the so called deprioritize list, as 0:07:31.800 --> 0:07:34.720 the MTA seeks to preserve the basic operation of the 0:07:34.760 --> 0:07:39.680 aging system. MTA CEO Channel liber says they'll also try 0:07:39.720 --> 0:07:41.400 to ensure service is not reduced. 0:07:41.760 --> 0:07:44.320 It may feel right now like things are a little 0:07:44.320 --> 0:07:47.840 crazy and even that there's a crisis, but we need 0:07:47.880 --> 0:07:52.400 to stay focused so that we can maximize the situation 0:07:52.680 --> 0:07:53.600 for our riders. 0:07:54.000 --> 0:07:57.000 The plan to charge drivers fifteen bucks and more to 0:07:57.120 --> 0:08:00.280 drive through Midtown was expected to yield four hundred million 0:08:00.320 --> 0:08:03.960 dollars this year and then a billion dollars annually. New 0:08:04.040 --> 0:08:05.480 York Governor Kathy. 0:08:05.320 --> 0:08:08.640 Uncle I made the decision to not go forward to 0:08:08.720 --> 0:08:11.880 pause at this time because I don't think New Yorker 0:08:11.960 --> 0:08:14.280 is based on what I've heard from people all over 0:08:14.320 --> 0:08:16.840 the city and the advocates and the people who are 0:08:17.040 --> 0:08:19.640 deeply concerned about what it'll do to our economy, that 0:08:19.720 --> 0:08:23.320 a fifteen dollars toll at this time is too much. 0:08:23.800 --> 0:08:27.720 The MTA still plans to pursue congestion pricing. The US 0:08:27.840 --> 0:08:30.480 Army Corps of Engineers says the shipping channel at the 0:08:30.520 --> 0:08:33.439 site of the collapse Francis Scott Key Bridge in Baltimore 0:08:33.760 --> 0:08:37.360 has been fully restored. A limited shipping lane had been 0:08:37.400 --> 0:08:41.080 operational for three weeks since the bridge's collapse in late March. 0:08:41.160 --> 0:08:45.160 The Corps has removed about fifty thousand tons of bridge wreckage. 0:08:45.640 --> 0:08:48.680 North Dakota voters today will to sign a ballot initiative 0:08:49.000 --> 0:08:53.320 imposing an age limit on the state's congressional delegation. A 0:08:53.360 --> 0:08:55.880 person would be barred from running for Congress in the 0:08:55.920 --> 0:08:59.880 state if they are eighty or older. Jared Hendricks is 0:09:00.080 --> 0:09:03.319 with the group Retire Congress North Dakota, which is behind 0:09:03.360 --> 0:09:03.760 the measure. 0:09:04.080 --> 0:09:07.160 There is a lot of discontent with Congress right now, 0:09:07.520 --> 0:09:10.079 and particularly there's a lot of support both for term 0:09:10.120 --> 0:09:11.439 moments and for age limits. 0:09:11.800 --> 0:09:15.200 Jared Hendrix, with Retire Congress says in several states there 0:09:15.200 --> 0:09:18.840 are already age limits on state judges. Jurors are set 0:09:18.840 --> 0:09:21.800 to resume deliberations in the criminal case against President Joe 0:09:21.840 --> 0:09:25.920 Biden's son over a twenty eighteen gun purchase, when prosecutors 0:09:25.920 --> 0:09:28.520 say Hunter Biden was in the throes of a crack 0:09:28.679 --> 0:09:32.360 cocaine addiction. Hunter Biden's lawyers have argued that he did 0:09:32.400 --> 0:09:35.319 not consider himself an addict when he bought the gun. 0:09:35.760 --> 0:09:38.360 Global News twenty four hours a day and whenever you 0:09:38.400 --> 0:09:40.800 want it with the Bloomberg News. Now, I'm Michael Barr, 0:09:40.840 --> 0:09:42.839 and this is Bloomberg. Amy. 0:09:43.120 --> 0:09:50.040 All right, thank you, Michael. Time now for our Bloomberg 0:09:50.080 --> 0:09:52.520 Sports Updated. For that, we bring in John stash Hour. 0:09:52.559 --> 0:09:54.040 Good morning, John, Good morning Amy. 0:09:54.200 --> 0:09:56.400 One reason the Yankees have the most wins in baseball 0:09:56.400 --> 0:09:58.560 they stayed healthy. Gerrett Cole went down on spring training. 0:09:58.600 --> 0:10:00.160 Looks like he'll be back through in the lineup up 0:10:00.200 --> 0:10:04.679 state intact until Juan Soto's injured arm last week. There 0:10:04.720 --> 0:10:06.200 was a sigh of relief and it was learned it 0:10:06.240 --> 0:10:09.040 wasn't serious, and after sitting out the weekend series with 0:10:09.040 --> 0:10:12.760 the Dodgers, Soto returned in Kansas City as the designated hitter. 0:10:13.160 --> 0:10:14.959 Had a hit and a walk and the Yanks score 0:10:15.040 --> 0:10:17.080 twice in the first hitting hadded two more in the fourth. 0:10:17.400 --> 0:10:19.040 They beat the Royals four to two. 0:10:19.120 --> 0:10:21.720 Carlos Rodin went seven and Eight's won his seventh in 0:10:21.720 --> 0:10:24.400 a row. Last season, Rodn was three and eight as 0:10:24.440 --> 0:10:27.440 ERA was near seven. This year he's nine to two 0:10:27.480 --> 0:10:30.439 with an ERA under three. Stanley Cup Final Game two 0:10:30.480 --> 0:10:32.800 in Florida, Edmonton was shut out of the Openers scored 0:10:32.880 --> 0:10:33.480 first period. 0:10:33.480 --> 0:10:34.640 It was one one after two. 0:10:34.720 --> 0:10:37.720 To that point, the Panthers had out shot the Oilers 0:10:37.720 --> 0:10:40.440 twenty two to seven and Florida won the game in 0:10:40.480 --> 0:10:40.959 the third. 0:10:40.840 --> 0:10:45.600 Period, ck Ben Larson straight on Rodriguez to Londell Anton 0:10:45.720 --> 0:10:46.800 Lundell near shot. 0:10:47.000 --> 0:10:48.720 Let's have rip it to they score. 0:10:49.160 --> 0:10:51.280 Heaven Rodriguez gotta stick on a. 0:10:51.400 --> 0:10:55.440 Hand the Panther's makeup pet. It's three one, seven thirty 0:10:55.440 --> 0:10:58.440 four to go with the third Heaven Rodriguez has two. 0:10:58.720 --> 0:11:02.120 I know QAA Panthers added an empty netter one four 0:11:02.160 --> 0:11:04.200 to one. Teams up two to nothing in the Cup 0:11:04.200 --> 0:11:08.080 Final have won the series forty nine of fifty four times. 0:11:08.160 --> 0:11:11.160 Dan Hurley staying at Yukon turning down a Lakers job 0:11:11.200 --> 0:11:13.760 that would have more than double his salary. Hurley will 0:11:13.800 --> 0:11:16.839 now try to coach the Huskies to an NCAA three pint, 0:11:16.920 --> 0:11:20.320 something not done since the UCLA dynasty. And Mike Tomlin 0:11:20.360 --> 0:11:22.719 has a three year extension in Pittsburgh, now signed through 0:11:22.720 --> 0:11:25.680 twenty twenty seven. Tomlin has been the Steelers coach for 0:11:25.760 --> 0:11:28.959 seventeen years. He's never had a losing season. USO for 0:11:29.080 --> 0:11:31.840 Tea's off Thursday in North Carolina. The field will include 0:11:31.840 --> 0:11:34.080 the Aussey Adam Scott. He got one of the last 0:11:34.120 --> 0:11:37.760 spots to keep his streak going. Scott has played in 0:11:37.880 --> 0:11:40.920 all of the last ninety two Majors. John stash Award 0:11:40.960 --> 0:11:42.719 Bloomberg Sports Emmy, Nathan. 0:11:44.760 --> 0:11:48.920 Coast to Coast on Bloomberg Radio, nationwide on Sirius XM, 0:11:49.000 --> 0:11:51.920 and around the world on Bloomberg dot Com and the 0:11:51.960 --> 0:11:55.360 Bloomberg Business app. This is Bloomberg Daybreak. 0:11:55.640 --> 0:11:56.120 Good morning. 0:11:56.120 --> 0:11:58.959 I'm Nathan Hager Ai. For the rest of us It's 0:11:59.000 --> 0:12:03.199 how Apple's top software engineers describing the Apple Intelligence features 0:12:03.240 --> 0:12:07.280 just unveiled at the Iphonemaker's Worldwide Developers Conference. Apple's long 0:12:07.320 --> 0:12:10.240 awaited bid to catch up in a fast growing space 0:12:10.280 --> 0:12:13.360 that rivals like Microsoft and Google have already made massive 0:12:13.559 --> 0:12:16.880 strides in joining us for more, as Bloomberg Intelligence Senior 0:12:16.920 --> 0:12:21.120 tech analyst Matthew Bloxham Matthew, good morning, we've seen kind 0:12:21.120 --> 0:12:24.120 of an underwhelmed market reaction to what we saw at 0:12:24.120 --> 0:12:29.120 the WWDC yesterday. Are these features what Apple needs to 0:12:29.240 --> 0:12:31.079 get itself into the AI game? 0:12:32.360 --> 0:12:33.960 Yeah, I think they are. I mean that they're only 0:12:33.960 --> 0:12:36.040 a starting point. I think we have to remember the 0:12:36.080 --> 0:12:38.800 context that in the last couple of months, the Apple 0:12:38.840 --> 0:12:42.319 share price is up something like eighteen to twenty percent, 0:12:42.440 --> 0:12:44.760 so that there was a lot of share price movement 0:12:44.800 --> 0:12:47.880 in anticipation of this announcement, and I think, yeah, we 0:12:47.960 --> 0:12:50.640 had pretty much everything that had been flagged before. So, 0:12:51.160 --> 0:12:53.280 you know, as you said, they need to step into 0:12:53.320 --> 0:12:56.720 the AI game. This is a kind of very broad 0:12:56.960 --> 0:13:01.079 range of updates to the full sweet of their apps 0:13:01.120 --> 0:13:06.000 in the ecosystem, and it links very specifically to their 0:13:06.040 --> 0:13:09.960 hardware lineup, because you know, unless you've got an iPhone 0:13:10.000 --> 0:13:13.040 fifteen pro or promax. You're going to have to get 0:13:13.040 --> 0:13:15.840 an iPhone sixteen when they come out. I guess September 0:13:15.840 --> 0:13:20.400 October time to get access to this Apple intelligence platform. 0:13:20.480 --> 0:13:25.520 So it could be a welcome boost to their iPhone sales, 0:13:25.520 --> 0:13:27.520 which have been sluggish for some time. 0:13:27.559 --> 0:13:29.800 Now, what kind of a boost do you think this 0:13:29.880 --> 0:13:32.640 could give to Apple's bottom line when it comes to 0:13:32.840 --> 0:13:34.760 those sluggish smartphone cells. 0:13:35.160 --> 0:13:36.719 I mean, it's a good question if you look at 0:13:36.720 --> 0:13:40.680 consensus for the kind of next financial year, which would 0:13:40.679 --> 0:13:46.160 you reflect that the iPhone sixteen sales the market's looking for, 0:13:46.360 --> 0:13:49.959 you know, kind of five or six percent growth from 0:13:50.440 --> 0:13:53.319 iPhone from you know, a kind of single digit decline 0:13:53.360 --> 0:13:57.080 this year, so quite a big swing, and that enough 0:13:57.360 --> 0:13:59.160 is enough to kind of really you know, I guess 0:13:59.640 --> 0:14:01.760 billin's of dollars to the bottom line. So it kind 0:14:01.760 --> 0:14:04.040 of could be a really important driver for it. And 0:14:04.040 --> 0:14:06.040 I guess there's going to be a big debate between 0:14:06.120 --> 0:14:11.959 now and September about just how many people are going 0:14:12.000 --> 0:14:15.440 to see this as the catalyst to finally make an 0:14:15.520 --> 0:14:16.920 upgrade to their iPhone. 0:14:17.240 --> 0:14:19.840 Seems like the centerpiece of what we saw yesterday was 0:14:19.840 --> 0:14:23.680 this partnership that Apple's going to enter into with open Ai, 0:14:23.800 --> 0:14:26.480 the chat GPT parent. Is that going to be enough 0:14:26.520 --> 0:14:30.600 a tie up with an existing startup to make strides 0:14:30.720 --> 0:14:32.880 against Microsoft against Google. 0:14:33.960 --> 0:14:36.640 Yeah, it's interesting, you know. I mean, I think Apple 0:14:36.680 --> 0:14:39.320 would dispute that it was a centerpiece. I think they 0:14:39.440 --> 0:14:41.280 see it as a kind of icing on top of 0:14:41.280 --> 0:14:43.680 the kat you know. Really, what they majored on yesterday 0:14:44.240 --> 0:14:50.119 was the Apple created gent Aai features that are integrated 0:14:50.120 --> 0:14:53.760 into the operating system and into the device hardware, and 0:14:53.800 --> 0:14:56.880 that a large amount of what they showcased is based 0:14:56.920 --> 0:14:59.920 on the Apple Gentivai tech, but they want to be 0:15:00.080 --> 0:15:03.320 had to give their users access to third party products, 0:15:03.360 --> 0:15:07.320 of which chat GPT is the leading in that kind 0:15:07.360 --> 0:15:09.240 of genre. And I think what we're going to see 0:15:09.280 --> 0:15:12.960 over time is potentially more deals alongside that. There's been 0:15:12.960 --> 0:15:14.680 a lot of talk about them doing a deal with 0:15:15.160 --> 0:15:19.080 Google on their Gemini Gentlevai platform. So what you could 0:15:19.120 --> 0:15:21.760 eventually end up with over the next year or two is, 0:15:21.800 --> 0:15:26.800 you know, the core on device Apple created Gingivai platforms, 0:15:27.240 --> 0:15:31.040 and then this range of extras on top chat GPT 0:15:31.160 --> 0:15:33.520 being one, Gemini being an other, perhaps even an Apple 0:15:35.120 --> 0:15:37.240 rival product to that and the user can then choose 0:15:37.240 --> 0:15:38.160 which one they go with. 0:15:38.960 --> 0:15:41.520 In our last thirty seconds, that integration with open ai 0:15:41.640 --> 0:15:45.120 seems to be something that cut Tesla CEO Elon Musk's attention. 0:15:45.200 --> 0:15:47.560 He's saying that he would ban Apple devices if it 0:15:47.560 --> 0:15:49.600 gets too integrated. I mean, how big an issue is that? 0:15:51.000 --> 0:15:53.840 Yeah, I mean, I guess you know, in the ground 0:15:53.840 --> 0:15:57.440 scheme of things, you know, Elon Musk's Empire business isn't 0:15:57.440 --> 0:15:59.640 going to count for too many devices, but you know, 0:15:59.720 --> 0:16:03.640 it is an important issue that genevai does open up 0:16:04.160 --> 0:16:07.800 people to all sorts of privacy and security risks. Now, 0:16:07.840 --> 0:16:12.080 Apple's made a big thing about keeping privacy at the 0:16:12.120 --> 0:16:15.480 central doing AI, but it's going to be an issue 0:16:15.480 --> 0:16:18.120 that I've always have to remember that. You know, Elon 0:16:18.200 --> 0:16:21.880 Musk has formed with GPT and open Ai. He's also 0:16:21.920 --> 0:16:24.120 developing a rival product to that. So there's kind of 0:16:24.160 --> 0:16:28.920 lots of things in the mix to contextualize his comments. 0:16:28.920 --> 0:16:31.240 But you know, definitely privacy is a big issue for 0:16:31.360 --> 0:16:32.760 journish AI and how we use it. 0:16:35.600 --> 0:16:38.640 This is Bloomberg Daybreak Today, your morning brief on the 0:16:38.680 --> 0:16:42.239 story's making news from Wall Street to Washington and beyond. 0:16:42.320 --> 0:16:45.320 Look for us on your podcast feed by six am 0:16:45.440 --> 0:16:49.640 Eastern each morning, on Apple, Spotify, and anywhere else you 0:16:49.680 --> 0:16:50.800 get your podcasts. 0:16:51.080 --> 0:16:53.760 You can also listen live each morning starting at five 0:16:53.800 --> 0:16:56.400 am Wall Street Time on Bloomberg eleven three to zero 0:16:56.440 --> 0:16:59.280 in New York, Bloomberg ninety nine to one in Washington, 0:16:59.400 --> 0:17:02.960 Bloomberg one six one in Boston, and Bloomberg nine sixty 0:17:03.080 --> 0:17:04.040 in San Francisco. 0:17:04.359 --> 0:17:07.920 Our flagship New York station is also available on your 0:17:08.000 --> 0:17:13.359 Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty. 0:17:13.200 --> 0:17:16.040 Plus listen coast to coast on the Bloomberg Business app, 0:17:16.119 --> 0:17:21.400 Sirius Xmviiheartradio app, and on Bloomberg dot Com. I'm Nathan Haager. 0:17:21.280 --> 0:17:24.920 And I'm Amy Morris. Join us again tomorrow morning for 0:17:25.000 --> 0:17:27.720 all the news you need to start your day right 0:17:27.720 --> 0:17:35.240 here on Bloomberg Daybreak