Apple and Huawei’s launch race

the CNBC app global market news in one place customizable sections and personalized alerts stocks tracking interactive charts and Market insights all in your hands stay connected stay informed download the CNBC app today hello and welcome to sork boox I'm Karen Cho with Steve stage week and Arab these are your headlines today Apple's new iPhone 16 fail to send the stock higher as investors and customers have to wait for full AI features while rival Huawei clocks up more than 3 million pre-orders for its new trifold handset Wall Street rebounds from its worst week of the year as soft Landing optimism pushes the S&P 500 to see its biggest daily jump in 3 weeks elsewhere Chinese exports topping forecasts rising at their fastest Pace in almost 18 months but Imports languish near the Flatline amid depressed domestic demand cominger Harris and Donald Trump preparing to face off for the first time in a crucial debate as polls showed them neck and neck in the presidential race and Global dividends hit a fresh record in the second quarter topping $600 billion with more than 90% of firms either raising payouts or maintaining them that's according to Janis [Music] Henderson Classic bounceback on markets yesterday I thought it was fascinating we had a woeful start to September Market selling off very aggressively but what we saw on the back of that another entry point for a lot of investors and Traders who may have missed that August sell and August I mean it came very quickly but the rebound was also very Swift so if you sat idle you missed out on that re-entry opportunity so I think we saw a nibbling around semiconductors yesterday in particular around the arc on the the spicier momentum stocks out there but I think there's still a lot to play for we're talking about the debate coming out later today will the politics start to have an impact on the stock market from here and of course there's more data coming in the form of CPI well yeah and I'm looking forward to CPI in the next 24 hours but I'm also very interested in what we saw involving credit yesterday and I think that is sweet music to the Market's ears if they wanted to see a woeful figure on consumer credit on revolving credit on delinquencies uh and that is what the market I guess wants to see to a certain degree they want to see although they don't want to see a recession they do want to see more impetus from the data for the FED to cut yeah demand destruction and an impact on the credit side but of course another big event too and that is around Apple so we saw the company take the wraps off the iPhone let's just take a look at some of the specs here Apple has unveiled its new new iPhone lineup with a focus on upcoming AI integration rather than an immediate roll out of new features the device will have a new action button which allows users to access the camera more easily and control some apps shares close flat on the announcement the product event comes ahead of a European commission ruling expected this morning on whether the firm will have to pay 14 billion EUR in back taxes to Ireland the latest development in a decade long Saga arjent joins us with more Arin this is a typic announcement these days we get a bit of tech news and get some regulation on the back of it as well but when it comes to what Apple unveiled it felt like it was a little bit underwhelming because this was meant to be the big moment for Siri all about the AI features the reality is you don't get them today these features will run on the iPhone 15 already on the marketplace and you got a camera button that you kind of felt they could have released at any point in the last 12 months yeah I think it the the event really high highlighted that it's a lot harder to innovate I think on the surface in terms of Hardware these days on the smartphone front if you're not bringing out some sort of foldable phone as well where Apple I think does Excel here really is is the new under the hood chip the a18 that is going to power a lot of these processes but I think the event sort of brought together really Apple's prowess in the hardware in the software and that whole sort of ecosystem so yes I think on the sort of Hardware front the devices weren't uh you know throwing blowing it out the park the software upgrades they were staggered so again that might cap demand in the near term people might to be rushing out to buy the latest iPhone 16 but I think it sets the stage perhaps not this for this year but for the coming years for Apple to kind of more tightly uh keep their users locked in and that's what the success story around this company has been all the commentary beforehand but I me you forget about the sleer design on the watch or the ear pods 4 with the hearing aid what all that stuff it's all peripheral this is about AI you guys have told me that so I'm going with it as well and so I'm sure we our next guest and and until people have had as you quite right say the full Suite of using the AI as Apple envisages it towards the end of the year what what is the Catalyst to spend where was The Catalyst to move from 11 to 12 from a 12 to a 13 to a 13 to 14 14 to 15 the 16 is supposed to be always bang better chips better AI as well but it's going to be proof in the pudding so I don't think this is going to be everyone just rushing out to buy this it's going to be a slow kind of um um metamorphis metamorphosis of people think okay it's actually really really good so it's going to need the users to turn around to people and say this is amazing or actually I can't really notice the difference yeah look I've been using sort of AI features on mobile for the past few months and they're very limited they're very limited in terms of the new features the generative AI features they're still very limited in terms of what they bring to my day-to-day life as it were I'm not using those sounds like 5G all over again exactly well I'm not using those those features every day and I think that's going to be part of the story here for Apple it's a slow roller staggered us users will get it first they'll see a few features then it will come to other users around the world so it won't I think push people to rush out and buy it right now it even might say to people yes these phones are sort of future proof to some extent if Apple are going to continue to roll out products but maybe I might wait until iPhone 17 and again stunningly exciting for UK consumers that we get to spend despite the fact that cable is now 1374 and the pro Max the largest one $1,199 how fantastic that we get to spend £ 1,199 on exactly the same phone 30% price Improvement let's get to sha SEL who is the CEO of benry and Capital Management thank you very much for joining us today let's get into the AI stuff I mean it was really underwhelming we saw what it looked like but it's not on the device yet so what do you do with that if you're consumer what do you do with it if you're an investor I I love the little back and forth you guys had because it was reflective of kind of how I felt when I saw uh the announcement and um it was very underwhelming um and to your point um you really need the 16 to get all the benefits the only really cool feature I saw which will only be available on the 16 is the visual intelligence part where you can take a picture of something and then it will tell you like what it is um I don't know about you but I always wish I had something like that if I find a random bug in my house or trying to figure out if it's a weed or a flower um so that is interesting to me but it is only available on the 16 so you have to upgrade I have a 15 I know some of the 15 team will have ai um uh incorporated into it but you won't get the Full Features so I think it does cause the people who are Big Apple Fans people who always upgrade with the cycle will run out and do it I think people who have much older phones may look to make that finally make the upgrade um but yeah to your point I don't know if there's enough to really make people run out I I I know every time I get a new iPhone I never feel like it lived up to the hype what of pression does this put on Apple to bring the AI very quickly to the device then well I I think that um there's a lot of pressure in that respect they want to be able to stay um competitive but I I think we all kind of Miss um Apple's key Advantage here which is that if you are in the Apple ecosystem no matter how much I'm sitting here kind of nitpicking my feelings on my iPhone I am never switching um and I think I you know I'm wearing an Apple Watch uh I have an iPad and like I'm never leaving the ecosystem even if I know that one of the competitors has a better product because it's just too convenient ultimately that's why Apple continues to win here um and while I do think it's imperative that they get these AI tools out because they don't want to fall behind I don't think it is make or break if they're a little bit like a month or two behind the competition and they still put out a high quality product shaa hang on a second I'm just showing the audience you might not be able to see this but I'm showing the audience a picture of a phone with with a a plant on a phone right and and I looked up what the plant was the other day and it told me it was a Plane Tree I thought it was something else the point is my phone is an iPhone 11 we can already do a lot of the stuff that you were hoping for on the 16 so where's the wiiz but that's already a form of AI and that's on an 11 let alone all the other devices yeah as I said they are rolling out some of it but the the part that I thought was cool and I I know there's apps that do this but I I like the idea of it just kind of being in my phone is like if I see somebody wearing a dress that I really like take a picture figure out where I can buy it that kind of thing um and I don't think that there's an opportunity to do that with the current uh iPhone like I said I have a 15 I know I can get the plant stuff I don't think I can get the bug stuff having the ability to do it with anything is kind of the cool part and that is kind of where we push it Forward um but again to your point um is it enough of an impetus for people to go out and run and get the latest and greatest I don't know hope it is jna um a lot of the focus around Apple over the past few years has been around that sort of multi-billion dollar Services business and how well they've been able to monetize uh their software and services what does Apple intelligence do to that business does it move the needle is there a new leg of growth in terms of being able to monetize charge subscriptions for some of these AI Services perhaps not today but but in the future I'm sure there is but at the end of the day I don't know if this is a competitive Advantage as much as a uh need to do to make sure that you aren't falling behind kind of move um ultimately AI is the future for pretty much everything um and apple was slow uh to this uh party and so for that reason um this is a very important development at Apple to be able to maintain market share but I don't know if it's enough to take market share um but you never know what else Apple could be working on um unfortunately I haven't seen Apple be as Innovative as it once was when Steve Jobs was the Visionary um I feel like they play it safe I haven't seen them do anything kind of out there um so I'm not overly um enthusiastic now the stock is a different story you got to separate like the vision and how interesting it is like in Nvidia where you kind of get caught up in the potential opportunity versus Apple where obviously there's growth opportunity and and things of that nature but it really comes down to the valuation of the stock and whether or not it's attractive from that perspective but overall for the company AI is more of a you have to do it then this is going to you know be a huge competitive Advantage every time we get a new iPhone uh you know we see some of the big under the hood improvements the the new Chips you know advancements on the camera Etc but does Apple need to innovate more on the hardware front I we've seen in China Huawei release a tri folding phone Samsung's already in foldables the flip and the book style does Apple need to jump into this space as well I do think they need to be innov but I I regret to inform you that the flip phone is not a new thing I had one myself like 20 years ago um it's just rebuilding something that was already there um but I I digress the point being is that yes I do think they need to be Innovative they need to come up with something flashy I you know every time they add a new iPhone I I I I come out thinking I'm finally G to have a camera that blows me away and I'm always disappointed maybe I just don't know how to use it correctly but um I I feel like if they really really want to make a splash they have to do something like really different um and and again to your point you know Innovative and design Innovative and functionality but you know it's been more of the same for years now and I I I think that if they really want to make a splash and really do something to you know get people excited and drive um the upgrade cycle they really need to introduce something that nobody saw coming yeah Sean Jim Kirk had a a flip foam on the Starship Enterprise in 19 68 so I'm with you all the way on this one as well um but been tell I want to go back to your valuation because look you can barely find an analyst out there who doesn't like the stock in fact there's one seller in the entire universe um that is currently on this one 11 holders 24 buyers 12 strong buyers as well I know that you own this stock personally and your family owned it and you uh your firm doesn't own this one so I thought I'd get those discloses out the way but what's the Catalyst for you getting more excited about stock that you already own I mean do we need to see a price demise or actually has just got to grow into the current valuation it's got to grow into the current valuation um it is one of the cheaper of the mag 7 and the S&P 500 and um in terms of the other Tech names that everybody is really excited about it it certainly hasn't kept up pace um which is kind of why it's attractive but you know as somebody who's been following the stock for a really long time I I I distinctly remember pitching this stock to a portfolio manager at Fidelity and right before the iPhone launch and him telling me I was crazy thinking the stock would be worth $100 because I think it was worth like eight bucks at the time I was totally right I am not as excited about the stock and I don't see that kind of upside today that I did in 2006 but um I do think that as a um leader in the technology space and the way that they've built their s their ecosystem um they're not going away and they are a well-run company but I would like to see them do something Innovative like they used do um if to get more excited about the stock but I do think it's a good stock at its current valuation there's upside potential do I think this is like you know a 300% increase or you know Nvidia 2.0 no um but I do think it is an attractive stock at this valuation and that there's opportunities for upside from here yeah it's fascinating isn't it the stock doing nothing and after hours a 0.01 I think flat as a pancake does suggest we will fell asleep on the back of the announcement Shan thank you so much for joining us CEO of banry and Capital Management well let's get to Huawei the opposition they will unveil a three-way foldable phone today in its own launch event just hours after apple as it says it has already received over 3 million pre-orders research from IDC suggests that's equivalent to more than 34 of the current foldable phone market globally this is the firm seeks to widen its lead over the world's largest company in the Chinese smartphone market Highway's announcement is due at 8:30 C have you seen how f is it side to side then what it's like a zed like a z Oh really sort of yeah okay accordion it's more of a the idea I like the idea if they can get it thin enough where you can put it in your pocket all of a sudden you've got a massive tablet in your pocket multi-use right I thought when they were someone was working on like kind of rolling up a newspaper type well they've got this concept rollable sc one you wear on your wrist uh so does this one have ai in the huawe device well we'll see when they bring it out but it's all going to depend on the chips they have access to and and what what processes they can bring on onto the device but I'm sure they're going to push that quite you're coming back to talk to us again I will do so couple of hours time uh China's exports grew 8 point this is a good figure on the export front but what does that mean for their international trade relations there's the question China's exports grew 88.7% year on-year in US dollar terms in August that beat expectations and is welcome news for an economy that's been struggling to boost domestic demand we spent a lot of time talking about that with a guest yesterday exports to the EU grew more grew the most up 13% but Imports disappointed growing just 0.5% more importantly what's coming up on the show Arab well Steve Global dividend payouts hit another record high in the second quarter will break down the findings in the latest jiannis Henderson's latest Global dividend report that's happening this hour plus the Trump and Harris campaigns they're making their final preparations for tonight's big debate we'll head out to Philadelphia for the latest and remember 5G well UK Telco e is rolling out its latest 5G Tech in the UK we'll be hearing from the CEO that's Mark alera the First on CNBC interview is coming up at 9:15 C [Music] [Music] a big day for Market Stateside yesterday and we saw a real bounceback taking place right across the boards Wall Street performing well don't forget as we kicked off the month of September it's been sell sell sell so we're reversal of that trade coming into the mix and the Dow up 1.2% % as a result very similar ranges in fact across the board so a lockstep we saw a performance more usual players as well to the upside Goldman Sachs for the likes of the Dow and of course for the rest of the other major boards the S&P and the nas you can see it was Nvidia that were the outperformers in session so rally is what we had the question is whether it continues on don't forget we've got the big debate State Side this tonight so whether the market starts to impact more around some of the election promises also of course more data as we count down to the fed and the market was unconvinced on the back of the non-fund payrolls report Friday as to whether it was going to be a 25 or a 50 basis point move so let's see whether the remaining data will seal that decision for the markets to the Asian markets and what we're seeing across the boards more weakness out of China that's been the real takeaway message we've seen for instance stocks out of China reverse tourism stocks have been hard hit at a record low on the CSI so China very much again Roy by some of the data and there is a view now if we look at some of the with import figures that we are seeing a ramping up of some of the exports to avoid any trade tariffs potentially down the road but the import side still weak because of the domestic position you can see Japanese stocks trying to recover with Wall Street they've been hard hit but it is a very modest range isn't a third of a percent there the opening calls this is how European markets are setting up for the session we are looking a little bit firmer on the Dax so the German stock market seeking a little bit of up big action it did gain about uh 3/4 1% yesterday breaking a 4-day losing streak the other major boards also improving so we did see the rally but this morning looks a bit more tentative doesn't it than what we uh had a day earlier for most of these markets the footy for instance was up more than 1% as it closed out the day now looking to give back some of that territory us features let's see what sort of bearing those us features are having on sentiment it is a little bit weak isn't it soggy at this hour cold lower on the NASDAQ in particular down by about a third of a percent so a slight softening up expected at the start of this session St yeah yeah some fascinating data around the moment we've already alluded to that throughout the show us consumers are still expecting inflation at 3% in a year's time according to the latest survey of consumer expectations from the New York fed respondents are also seeing price pressures at 2.8% in 5 years so yeah the landing Zone way higher than the FED would like to see if that is the case both figures are unchanged from July's report now look another quick look at the treasuries um and where they're currently trading as well um the two-year trades what's that 368 at the moment the 10year 378 and I've got a chart I'm going to show you in a moment and I've been banging on and I make no apologies trying to explain to you lot out there that it is not necessarily the change in interest rates at the federal funds rate level that moves the curve that moves what you Americans are paying for your debt a and our team last night overnight put together a chart of one just one aspect very important aspect of consumer data and I want want to show you this and this is the 30-year fixed mortgage rate now there's a lot to say on that chart as well um including the fact that you can see there it's at its lowest level in the last year plus at 6.25% 6.25% yeah but look at the middle of that chart that is 7.76% and I can tell you that that was hit 7.79 if you if I want to be pedantic and that was hit just over a year ago on the October the 26th 2023 we have come off on that rate by you know roughly a percent and a half give or take the change as well without one interest rate move so this is what I've been trying to explain to viewers for ages it isn't necessarily the 25 or 50 you're all getting obsessed about it it's what's going on around that it's what's going on for demand for credit supply of credit supply of treasuries as well and goodness knows I hope the ABC team who are doing this debate I hope someone talks about the economic plans of both Trump and Harris because supplier treasuries could be ratted up to a volume I 11 uh if we're not careful with a couple of these plans that we're seeing from both candidates as well but the point Remains the Same as well that the cost of money The Benchmark mortgage rate in the United States has gone down dramatically since its highs of last year yeah indeed I think the Market's now looking at some of the discrepancies out there in these trades and credit markets in particular data TR had a piece out yesterday saying look it look if you look at what the treasury bond market is saying it is effectively saying that the Federal Reserve is badly behind the curve when it comes to rate cuts and they're pointing out the deviation that you're seeing between treasury yields and where they're trading what the 3.65% to give or take a few moves intraday that uh is a 1.68 percentage Point difference with where future polic is according to Fed funds rate so there is a gap out there in the market in terms of positioning and typically they say there is some catch up but this can also be the precursor to recession based on that deviation typically you can also come on do we really think that the the curve has been a good metaphor for where the where the economy is going the curve has been calling for recession for most of the last year or so and funny enough we haven't touched anywhere near I know things are getting worse now but but but to say that the curve is anything other than a random generator of of data it hasn't been accurate all that invers y curve inversion stuff about recession that's been going on for a long long time it's it's failed to be an indicator we have a ton of stimulus being thrown at the system so let's face it I mean is this time skewed by the amount of fiscal spending that has been happening and that can make a difference I think the point that I really want to make which I'm not sure we have time for but was around the labor market and I think that's where you've seen dramatic changes and that could be the precursor to some sort of dun have we seen dramatic change in the labor market we're still at 4.2% handle we have so if you look at the numbers we've had revisions lower from what we were 118,000 in the new figure down to 89,000 in July so that's June July and the latest numbers are also 142 but with potential so if you look at the US Labor forcey R which has grown by an average of 1% annually Over The Last 5 Years apparently the economy needs 132,000 jobs a month to keep on growing so we're not at those numbers according to dayre in its latest research so we're under that so the the labor market is shrinking for the last 3 months thank you for listening to squat boox Europe Express for more Market moving news you can head to cnbc.com or join us again on the show with Steve Cedric Karen Cho and myself Arab their weekdays on CNBC