shares in manufacturers bombardier and siemens have jumped on reports they are in talks about mergingging their train—making businesses. talks between bombardier which makes a lot of london underground trains, and siemens are reported to have started earlier this year — bombardier‘s shares rose nearly 7% on tuesday while siemens' shares hit a record high before easing back. injapan — there's a crisp crisis as — crisp—maker calbee and its main rival koike—ya are facing a major crunch in their supply chain. both firms are said to be suspending sales or discontinuing several crisp brands after japan suffered its worst potato harvest in at least 3a years. typhoons and floods in hokkaido, its main potato—growing region, last year caused a shortage of the vegetable. before we go, let's look at the markets. the ftse is down ever so slightly. tesco is down more than 596. slightly. tesco is down more than 5%. they beat expectations with their profits figures, but they also had some negative news. their pension deficit has more than doubled and there is concern over their margins, international

we have seen analyst reports saying siemens will merge.re left to the sidelines, they are a complete loser if siemens and bum party a join. the industry is already consolidated. parts of thee german capital of berlin. i can't totally foresee regulatory scrutiny. also, we talked about obstacles for an election year in germany. i would think a combination of both players would at least have some potential for layoffs. that doesn't really go down well in germany with strong labor unions. you want to address those issues clearly. mark: thanks for joining us and filling in on this developing story. next, sergio garcia on the business of golf and his first win in more than 70. what a story that was a we can. where european equities are as we had to the close. this is bloomberg. ♪ attention homeowners age sixty-two and older. one reverse mortgage has a great way for you to live a better retirement... it's called a reverse mortgage. call rfree information kityour with no obligation. it answers questions like... how a reverse mortgage works, how mu

additive manufacturing is a focus of every major industrial company right now, from boeing to ge, siemens, 3m, are all using 3d too. manufacturers are doubling down. >> they see the cost savings. the products are improving in quality and quantity. it's a matter of time. >> reporter: and that time is fast approaching. morgan brennan in whitehall, michigan. >> that is just astonishing. >>> coming up, how one prison program is changing life on the inside. >>> last night we told you about a program that teaches prison inmates at san quentin computer coding skills even though there's no internet on the inside. is it just a bunch of silicon valley do gooders or does the program really change lives? jane wells follows one graduate in part two of her series. >> reporter: it's after 5:00 p.m. and kinyata is still at work at rocket space. >> my title is manager of campus services. >> reporter: he's also an ex con, who spent 19 years after drug dealing and armed robbery. the weird thing is he sometimes goes back to prison voluntarily. >> i never thought i would be saying this, but man, it feels good

shares in manufacturers bombardier and siemens... companies face a major crunch in their supply chain. both firms are suspending sales or discontinuing several brands after japan suspending sales or discontinuing several brands afterjapan suffered its worst potato harvest in at least 34 years. typhoons and floods in hokkaido caused a shortage of the vegetable. before we go let‘s see how the markets are getting on. the ftse how the markets are getting on. the fts e we nt how the markets are getting on. the ftse went up, then down, now it‘s back where it was this morning. tesco down about 5%. we have those figures this morning. the tesco share price had increased 6% over the last five trading sessions. down again today. smith gave good profit figures, but shares are down, a feeling they may need to refocus their business or growth. on the high street their sales are falling. more on all of these on jobs, inflation and wage growth, in an hourin inflation and wage growth, in an hour in the special market slot. more than 50,000 disabled p

the ceo of siemens is inviting me to talk about these issues to their board.e is concerned about it. i'm concerned about it. we have to prepare our people for the digital revolution or we will have more division, more anger, and it won't be pretty. it's one of the warnings i have out there. charlie: what do we have to do to be prepared for the future? we live in a very competitive world. and china, across the pacific, has not only an economic growth rate bigger than ours, it is a larger population and has enormous potential. people will question if they can deliver on that. it does not call china being one of the superpowers and is interesting. that we have the intellect and the freedom that comes with the ability to bring about great advancements. this is back to this book. absorbed andelf not thinking about others, we maintain institutions that may not be delivering the goods for our people. charlie: you are very much in favor of not reducing, in the budget -- you are in favor of the kinds of commitments we've had in the past the national institute of health

siemens and bombardier are in talks to combine their operations and would be valued at almost $11 billiond off pressure from chinese train makers who were threatening market share. much more with a reporter next hour. shares of french luxury goods maker lvmh rising and paris today, revenue much better than expected. they were boosted by fashion and leather goods unit, where quarterly sales rose 15%. lvmh's performance is the biggest sign of a rebound in demand and the luxury goods area. hollywood is threatening to go on strike and that could cost the entertainment industry billions of dollars, taking popular television shows off the air. they say pay for writers has not kept up with the digital revolution and the union is making too many demands. that is today's bloomberg business flash. vonnie: time for our bloomberg quick take where we find context and background on issues of interest. --l is the biggest source and the biggest contributor to global warming. cole still generates about 40% of the world's heat and power. u.s. president donald trump has promised to revive the u.s. coal indu

some seamen positions -- siemens position. >> a cleans up a long-standing problem, but i think in termsnt, it brings together dior could tour -- your could tour -- i think that has to be a good thing. >> where is this business -- i'm looking at headlines overnight out of china saying they are .ulling back where is this business getting the most of its sales growth. is it the asian area? >> yes. i think the recent results did comment particularly on chinese whethers driving demand it is in paris, sydney, or tokyo, they are spending. >> great company, great return on equity, salt -- consolidator of brands. we wanted -- it was half price. the company very well run. -- they allssues have potential risks. >> what is that safe for the future? for the share price growth potential of these chairs? the multiple is a full multiple. i think we need to see earnings growth, but i think the track good and oneremely of the things we still like is ,he emerging market consumer whether there is a lot of growth still to come in countries like india, indonesia, brazil. there are wealthy consumers in those

they used to have ericsson in '99, they used to have siemens in 2004, and they survived those customers. there is value in the business model even in tough times when customers fall away. i'm not saying apple will fall away completely. at the moment i'm just expecting a second source, which, for dialogue, is probably bad enough. but certainly a significant strength in the business model and certainly is value in the design that dialog is having. >> karsten, thank you very much. >>> toshiba faced with massive losses related to its nuclear power business released its twice postponed earnings report today but without the auditor's stamp of approval. >> toshiba booked a net loss of 4$4.8 million from april throug december last year. and its total debt reached $2 billion as of the same period. it is extremely unusual for a firm to release its report without the auditor's approval but toshiba delayed the earnings report twice, and no japanese company delayed an earnings report three times. there have been allegations of inappropriate internal controls at the company which has accumulated mass

there's that german company called siemens, 80 or so locomotives, we have a manufacturing plant in california, we make light rail cars out there, transit cars. you say 100%? 100% american made? everything? from the electric motors to the brakes to the wheels to the paint? 100% american made? the german company said, we can do that. we could make it in america. and they did. last train that's been produced, this is the first train. don't tell me can't make it in america. don't tell me that our american taxpayer dollars should be spent in chi in or japan or someplace else. no. build it in america. buy american. and we'll put thousands, in fact, tens of thousands, of people to work. i'm going to give you another example. the american maritime industry has been in a very steep decline for the last four decades. following world war ii, we had over 1,500 american ships. a decade ago we had over 00 american ships. on the ocean. our ship yards were making l.n.g. tankers 20 years ago. and they were american flagged. american mariners on those ships. today we have less than 80 american flagged ships an

the new railcars are manufactured by the siemens company out of sacramento factory and will replace muni's fleet cars. >> it's been three months since the devastating flooding in san jose and it is not a quick recovery. >> see the impact on my 10-year-old granddaughter. i had to evacuate her from her house and she was terrified. >> the promise to make sure what happened in february does not happen again. >> plus, united called the capitol hill about the passenger involuntarily dragged off a plane. >> the player who created his own hashtag #find me later trends today. >> the traffic not looking to good. your 80 eastbound traffic is the oncoming traffic. it is crawling along and the other folks, they're trying to perhaps get over into san francisco. pretty typical for a >>> after months of finger pointing over the massive flooding in february, the san jose city council met face to face with board members from the santa clara valley water district. abc7 news reporter chris nguyen has the story. >> reporter: for those affected, the water district headquarters meeting could not come soon enough

infrastructure when related to nuclear capabilities and in this case the control systems believed to be siemens based and the stuxnet which went after iran's centrifuges might work here now. >> so they know about that now, so there's defense, but there's an advantage. we have sanctions in north korea and in iran. they cannot upgrade to windows -- you know, they can't get security updates from windows. this plays a huge part in our operational plan, right so when it comes down to it you can't have the same security features as maybe we do in the u.s. or in countries that are not on the itar defense agreements. what that does, it could give the government access to find a vulnerability they can't deagainst -- defense against. >> power lines are a vulnerability? >> they are. the software that desgrats between the industrial and the control systems and the actual software themselves. they have been known even both here and abroad to be very insecure due to the way they integrate. >> again, we don't know whether they use a stuxnet like worm here or not. but that certainly has been discussed based on

she will visit the siemens technology academy, part of her focus on s.t.e.m. outreach. then later this afternoon, she heads to the holocaust memorial here in berlin, where she will pay respects to victims of the holocaust there. and later tonight, she is expected at a gala dinner. however, the panel today on women's entrepreneurship proved to be somewhat interesting first step in this global stage for ivanka trump, and she certainly was poised in her answer. however, there are a lot of questions here in berlin about her role. back to you guys. >> maybe not the greeting she was expecting on this first overseas trip. she blames the media, but that wasn't the media hissing there. >> no, the audience. >> that was the crowd. kate bennett in germany, thanks so much, kate. >>> a lot of news this morning. the senate judiciary committee is confirming that former acting attorney general sally yates and former director of national intelligence james clapper will testify next month to discuss the russia interference in the u.s. election. now, you'll remember, sally yates was a key

what would you argue be about the impact of a potential spinoff from siemens?t about the health care unit being spun off. what was your reaction be to that? >> no reaction, because i don't think it will make any difference. that company is acting standalone already. it's a competitor like many others. i would like to mention, however, that philips has a strategy to be a full-line supplier. we cover the entire health continuum from healthy living, diagnosis, treatment, and chronic disease management. we are unique. more towardsmoves outcome based health care, we have the right portfolio to deliver that two providers. i hear that from hospital ceos and large idm's all over the world. manus: we are the personification of healthy living, while waking up every day at 2:30 a.m. let's talk about rewards for shareholders. you probably can't tell me exactly what you will do it the money, but i want to know the ranking priority. you have a choice. acquisitions, buybacks, or debt reduction. put me -- can you update us? the same thing, but i like the same question. >> we h

so siemens and the conglomerate group is up. put up the other one in europe.uto stocks are trading on the upside like bmw. put up the next one there. you can see what's going on. the important thing is there you go. ovmh everything is moving to the upside. ten of 11 sectors are on the upside. telecom is down here. industrials and materials and gold is the big laggard. the earnings parade is continuing, it's favorable. been good so far. illinois tool weeks, an historic high for them. they make arc welding equipment, construction products, food equipment. everything. 100 countries. and 50% is outside the united states so this is part of the pattern. they beat and they raised their full year guidance. we have seen this with a number of the big overall companies out there. so ge beat and stanley & decker beat a and raised. sherwin williams beat and raised. the banks started well, now the industrials are coming in. it's a good sign because we need earnings to be doing well this quarter. a lot riding on it. where are we in terms of the risk? we have been talking abo

siemens and can others like you make money in the new technology? judy: we must certainly can.us and we will migrate forward on the many issues that we ♪ tom: this is the backdrop for wall street and the city and investment sell side and by side, this is the vix back 20 years and the red line is the decline in volatility in the classes we have seen since 2012. -- adairderek turner turner and his great work with fsa and the wall street right now. the great debate is active, passive flows on the part of regulators. where is this going to be in five years? how do you perceive the active-passive debate we are about? lord turner: there has been a major shift to passive and that will pressure on active to the they are adding value. what we probably see is a move away from people paying fees for active, which is just short of tracking indices in any case, but focusing on those categories of active where you can actually say you are adding value. i think what we have clearly seen with passive and various cost runs is a very low alternative, which provided a benchmark against which the

other companies, 3m, siemens, lockheed martin, ford are just some of the companies also looking into but right now the biggest application is aerospace with 3-d printing in that industry expected to grow by about 55% per year through 2020. that's where arconic is applying this right now. aerospace is the biggest business for that company. this is one of the ways alongside a broader push in digitization and automation that this company in the midst of activist investor pressure is cutting costs and looking to boost its profit margins. and of course, growing market share. guys? >> i learn, morgan, by the way, that's how alcoa got its start was back in the '20s or something coming up with some way to use aluminum in planes, and you know, so -- you know, it almost feels like with this 3-d printing like it's so new. but maybe this is just the next, you know, different thing. >> i'm glad you brought that up because i was talking to the folks here yesterday. and they said that they started experimenting with 3-d printing in its earliest forms almost 30 years ago. and that they've been reall

we worked in detail with siemens over the last year and a half to look at the range of activities necessary and changes throughout the market including the grid itself, the built environment and our transport systems necessary for the goals to be achieved and they did find it's technically feasible and that a early core element of course is reducing emissions in transport and there are considerable job opportunity and that the job impacts of the system are electrifying individual vehicles as well as improving the electrification of the use of car share services such as a number of them headquartered in the city. another major consideration of course is do people actually want these vehicles? and it's a fundamental one and what is interesting step back from san francisco and look gloapally and banks and auto makers are tracking the growth of the electric vehicle market in the coming years and the bottom line they're regularly revising their estimates upward and they're not environmental groups. this is morgin stanley, bpn perritace and globally and the total number of vehicles globally be in