it will not be just a daimler story. daimler is not alone in this idea.his could be the biggest story are cut is triple widely anticipated out of china. keep an eye on hong kong stocks, they could be most affected by this create it will not be a small targeted triple are cut. the expectation is this could be a sizable impact. as a result of which you could see the chinese currency, which has been on a tear down over the -- fewu section sessions. take a look at the commodity space. this is what you want to pay attention to. the bloomberg commodity index down .41%. not reacted much. we are watching what is happening in the and a as year-end tones down the rhetoric. keep an eye on the ig markets. theaw the issue yesterday, market lapped it up. it was a huge story in the i.t. space. -- in the ig space. that is what we are factoring in what we are seeing in europe in space as well. u.s. president donald trump is planning to meet with russia's vladimir putin during his visit to europe next month. two possibilities for the meeting are either before the nato summ

these are your headlines daimler in the headlights. shares in the carmaker skid at the open as it warns tariffs will impact full-year earnings that warning drives down the entire sector with autos the big underperformer as equities generally trade higher. >>> hopes for an output deal increase as cnbc is told the cartel will not be swayed by politics >> this is not a political organization this is a commercial organization as i told you earlier, we are not going to politicize the organizaon >>> saudi arabia's market chiefs cheer the country's entry into the emerging market index saying it will attract $40 billion of inflows and increase the attractiveness of the saudi aramco ipo >>> red lights on the european stock map. auto stocks are trading sharply lower after daimler issued a profit warning weighing on its german peers the carmaker cut its 2018 earnings forecast blaming global trade tensions daimler says sales of its mercedes-benz suvs would suffer from tariffs on cars exported from the u.s. to china the group predicts its ebit will

daimler shares are down by 4.3%.e cutting its profit outlook due to escalating trade tensions between the u.s. and china. it's claiming chinese customers will now buy fewer cars if and when it puts tariffs on u.s. automobile on imports. many daimler sedans they say will be a lower price. they will be shipped to china. they had bmw ship around 600 vehicles to china from the u.s.. that's about $7 billion worth of goods. there may be other issues behind the announcement today. daimler shares are down by 4.3%. vonnie: in the u.s., i have picked out the more interesting assets to look at. they may not be moving today but the dollar index obviously has been ruling the ruse when it comes to emerging-market currencies. it is just a little bit off today. 3583 is your 210 curve. maybe other parts of the curve are more interesting. crude oil is just down $.13. we're waiting to see what happens with opec. members of opec are already talking about the next opec meeting some not sure what kind of message that sends. goldman got st

daimler,r auto names, sellofft, a significant on daimler.ves by bmw come all about the donald trump tweet saying that i threaten you, 20% tariffs on all eu cars coming from the eu to the united states. that is what is being threatened and that is why bmw is down. fiat chrysler off significantly in terms of the italian board it is trading on. in the u.s., coming off of highs, concerns about what that means for the sector. vonnie: wti, a rally, up a most 4% over news of the deal. -- up almost 4% over news of the deal. 290 on the 10 year. -- 2.90 on the 10 year. dollar index has taken a pause. 94.71. movements in other currencies. markets.top as you can see, some european markets, canada with a recovery in equities. australian -- the renminbi -- u.s. dollar is weakening. look at this commodities picture, gold, which has been way off, up a little bit today. it is a friday. caroline: that it is. back to the big story, president trump renewing his threat to impose a 20% tariff on cars coming into the u.s. from the eu. benedict joins us. these are

daimler will recall 700 74,000 vehicles. no fines likely, what will the cost be to daimler?0 million euros max. , it willoftware flash be approved by german authorities. we have seen that before, multimillion vehicles from audi, volkswagen. these costs are immaterial, but they have a solution now, they make peace with berlin and get these cars properly fixed. matt: what do you think about the german carmakers in general, versus their peers? you like the stocks of daimler, bmw, and volkswagen? ardt: it is generally tough because at the moment, we have all these trade roadblocks and uncertainties, we have e.m. weaknesses, currencies moving around, so the macro environment is quite tough. that is why we prefer strong equity stories. we like volkswagen for the turnaround, i expect a lot from the new ceo. that is my preferred stock out there. vw. bmw is in a bit of a holding pattern. they had good product momentum, but i want to see that coming through. daimler is at the peak of its mercedes product range. a truck line is holding up knife -- nicely. , volkswagen, then daimler, th

are tentative.es for daimler. blaming that for a lower expectation on for daimler. bla profits.on the sector as a result. by futures point higher up .2 of 1% but the asian equity session was weaker, msci asia down .6 of 1%. let's talk about the bank of england. they look set to wait a little longer before following up on last year's interest rate hike. that is after a run of mixed economic data. a good england announces its time -- at 12 noon u.k. bank of england announces its decision at 12:00 new u.k. time. the window is time closing for k carney, the unreliable boyfriend to raise rates in 2018. is a rate hike off the agenda for 2018? we certainly think so. if we think back to me, they were concerned about the slowdown in growth that we saw in the first quarter. they thought it was temporary. they were standing put waiting to see if that was the case. at the time, they signaled they thought that was temporary and growth continued to come in line with their forecasts. tightening would be necessary. since may, the data we have seen is mixed. delving beneath some of the better da

daimler has to recall some 800,000 diesel vehicles across europe due to the missions sheeting. it predicts that earnings before taxes and interest will be below last year's level. we asked our frankfurt correspondent how worrying that is. >> it is a new chapter to worry about in this saga, and the investors put pressure on the daimler share because of those worries about the future. it dropped by over 4% and it took other car shows like a bmw and volkswagen down with it. one analyst is saying that when you hear a profit warning in a situation like this, it is usually not the last one. people don't know, is this the end of story, especially since, as you mentioned, the diesel scandal as well, it is unclear how high the tablet will be in the end for daimler. it was under pressure before. it was poor performance and a diesel scandal with a profit warning not good for the ceo. fanny: talking about the ceo, a bombshell announcement shaking up silicon valley. the intel ceo is doubtful to he resigned unexpectedly after the company said it learned -- is out. the he resigned unexpectedl

analyst was criticizing daimler, making a little joke saying daimler, man down. look at their stock how it has performed. there may be other issues going on. this is being pointed to the trade wars as a reason. convinced for the reason. the next big event is that opec meeting hours away. they are gathering in b&r. we don't quite have a deal but how is it looking when it comes to this scenario that has been emerging over the past few months? >> it seems to look pretty dim for a compromise in terms of the output. >> let's look at how oil has performed your today. we had a big drop and it seemed on an upward trend. now it looks like the ministers are going into the friday meeting supporting an output boost. , take a look at the week so far in west texas. it has been a rocky ride. they are not sure what we will see at this meeting. whether an agreement will come out. it is being told that a ron will have a voice at the meeting. >> thank you so much. let's take a closer look at the latest in trade tensions. bloomberg is being told that officials are restarting talks w

daimler says it's earnings will be lower than last year.tands and crossover vehicles daimler cells in china are made in the u.s. it is getting tougher for americans to buy a home. drops forailability the lowest since late 2008. the national association of realtors says the previous price of homes are -- average wage owners would have to spend 31% of their income to buy house. that is above the historic average. tom: daniel morris is with us talking about trade, maybe the politics of immigration, but on investment strategy it is just a free lunch. mergers and acquisitions -- you are not a technology guide, but you and i can look at an old news model of 17 times the book value for fox. i do not know what the new model is. have we reached a silly season? tech as a whole i do not think so. valuations are higher in the tech sector than other sectors of the u.s. market. there are expectations that there is a growth that is warranted. it is quite interesting if you look at earnings revisions over the last year. the last end of the year you had a b

shares of daimler, bmw, volkswagen are lower daimler lower by 4%. bmw by 3, and volkswagen down almost 2 % >> big moves in europe as we expect that policy decision from the bank of england. stocks in europe mixed right now. >> it goes to show you, we knew that autos would be a key battleground when it comes to trade tensions china, the u.s., europe, it doesn't matter now because it's a european automaker, just because they make the cars in south carolina, alabama, it will be an issue >> absolutely. >>> look at some other corporate stories. watching good rx, which is in talks to be bought several people saying a deal could fetch up to $3 billion it's not clear who would buy the company, but mckesson was possibly taking a look good rx did not return our request for comment. you can read more about this on cnbc.com. >>> we have analyst reaction pouring in after disney upped its bid for most of 21st century fox. that new offer tops a current bid from comcast, but media analyst rich greenfield doesn't expect comcast to back down. here's what he told the

helena: daimler is trying to show corporate transparency over its dirty diesels. the dimer ceo has ordered the recall of over 200,000 vehicles in germany. they were fitted with software that turns off and mission controls under certain conditions. >> this was before his meeting with the german minister for transport. two hours later, they put out this video message. the govevernment has dememandede recacall of 238,000 daimler cars in germany and a total of 774,000 cars in europe are affected. this is an unexpectedly blunt statement. -- we agreed that we would clarify the legal questions and take care of the software without delay. the car make a address the problem and its bands as well as -- vans and other models such as c-class sedans. >> it is high time that something is being done. managers have to fear the consequences while nothing happens in germany. >> experts say the recall in germany could also impact dime was u.s. division. they will be read -- repercussions in the u.s.. lawyers in the u.s. will be taking a closer look. >> meanwhile, daimler maintains t

daimler said full-year earnings will be less than last year. many sedans and crossover vehicles are made in the u.s.. they would be caught in the tariff war between washington and beijing. alix: thank you. bloomberg first take, three stories we are watching this morning. central banker sounding off on the trade dispute on growth. yet companies starting to predict how much trade spats will hurt sales and margins. finally, goldman sachs says emerging markets are a buy. we are joined by peggy collins, and the chief u.s. economist at deutsche bank.

daimler claimed its profits would fall because fewer chinese consumers would buy sports utility vehiclesying with that story, that the us markets did actually stabilised after the us tariff had sent markets earlier —— loa early in the week. when will we see what kind of tariffs that these —— impact these tariffs will have a major? i put that to an analyst from the bank of singapore, who joined major? i put that to an analyst from the bank of singapore, whojoined us earlier. from july one, it is going to hurt. initially, the numbers are quite small that they are talking about, initially it is only 0.25% of american gdp. because of the supply chain ‘s comment is really hard to see where it could be disrupted. that it could be really the subject asian economic growth in the second half of the year by 2019 if you had these tariffs in place, plus rising interest rates and wicket emerging currencies. yeah, the overall economic environment is looking challenging. that is causing disruption amongst various emerging markets, most of those are not in the asian region but it is affecting the asian

let's take daimler, a big company.morning said because of the issues with china they are taking down their profits. the stock price went down and futures index and s&p down. that is not a small company, sir. don't it is not, but i think what we have done will hurt them. david: what it is is the imposition of tariffs by china on what we have done on exporting suvs from south carolina to china. there was a direct response to the actions we have taken. >> the retaliation, sure. naturally there will be some retaliation by the foreign countries. they will try to pick politically sensitive areas to deal with. we are ad of the day, net importer, not a net exporter, and that means a very fundamental truth. sell $500, they billion a year in goods. we only sell them $150 billion. ite they click tariffs, if went that far, on the whole $150 billion, they have nothing more they can do. we could toretically go all the way up to the $500 billion. that is not an easy game for them to play, and similar ratios with the other countries.

i cannot speak to daimler specifically.not follow the stock is enough to have a comment on their warning. i think when analysts get skeptical about specific headline-driven excuses with what is going on with a company's performance. i think it is reasonable to be skeptical. wille other hand, tariffs disrupt around the world if tensions continue. i do not think that is something that would be controversial. it does seem early for daimler to be saying that affects us dramatically, maybe in terms of cost increases for raw input, but in terms of declines for consumers, i find it hard to believe that that is really moving the needle for them. but again, i cannot speak specifically to it beyond that, because i do not follow the stock personally. joe: george, let's talk about what we can see already in the data. on my a chart here terminal, global manufacturing, global industrial production, and global trade volume. going back about 10 years, when you look at the total global macroeconomy, is it rolling over a little bit? and how

german carmaker dimer is our stock of -- daimler is our stock of the hour. what happened?its profit outlook and blamed that on escalating trade sessions between the u.s. and china. it's the first major company coming out with a profit warning. current year ending will likely be below last year. the company says people will buy fewer cars after beijing slaps tariffs on u.s. imports. wild daimler is a german brand, it largely manufactures its --eipt he's -- it'sreset manufactures in the u.s.. extent are these problems apply to other auto companies or be unique to dimer? if you take a look at some of the u.s. automakers and how they performed today, they are all hit, all down. we also have a chart with analysis that shows that dimer and bmw will be the worst hit. while american automakers are down, it is european automakers it will be hit the most. shery: thank you so much for that. right now, we have the president who spoke just miss ago. >> i have known him for many years. we have come up with a lot of solutions, that we have democrats that don't want to approve anything be

vonnie: we saw daimler talking about this.t curious -- at what point do these copies pull the plug on the decisions and make the decisions that the plant is going to close down because we are opening it in another country, what have you?at what point should we talk about outlooks? david: at this point it is just talk. these are big tariffs -- 20% for european autos. i think a lot of people believe that it will not be the final tariff once negotiations happen and they come to some sort of agreement. trump has started off with the extreme lowball, the harsh overture to begin with, and then you end up with something more rational. all sides of this and the companies involved are hoping that there is a change to the , you can still make sales and make a profit. if it ends up being a 20% tariff, you will see companies like daimler and bmw who sell all other vehicles. they are the luxury leaders in the market. they have to move more production here. the japanese have done it to a significant degree and the germans have been doing it

german car giant daimler — owner of mercedes benz — has warned profits will fall this year because of tariffs on cars imported from the us will hit sales of its profitable sport utility vehicles — which it makes in alabama for export to the rest of the world. toys r us and babies r us stores across australia will be shut down after the compa ny‘s local administrators said they were unable to find a buyer for the embattled brand. the australian arm of the us chain has 44 stores across the country and employs about 700 people. the photo—sharing app instagram is launching a new feature that lets users upload videos longer than a minute. it comes after rival snapchat announced a similar video feature — aimed at keeping users on the site longer. video adverts typically command a higher fee than other types of online display ads. so will you start to use this new feature on instagram? get in touch with us. sound like a long time to be on instagram. let's go to asia now — and there's a new escalation in global tension over trade. india has raised taxes on some agricultural and steel products

daimler's a bit of an idiosyncratic story there. they had some issues to deal with emissions and over the weekend. that is the main underperforming stock. you can see that broadly speaking the sector is under pressure today on back of some of those remarks from g7 let's take a look at the deal makers because another sector being impacted by these tariffs, today we are seek a bit of a rebound, are leading the charge of .7% the german nis have been in focus. >> one thing we pointed out, we talked about investigations by the u.s. into autos. they made similar noises about steel. we're seeing in these tariffs. if you're running a major european firms, if they're looking into this, if the commerce department and ade rep is examining this, then they have reason to be concerned. >> we'll have to see how that plays out in markets nbc's kristen welker has more on the tumultuous week in quebec at the g7. >> reporter: it's the picture that says it all president trump alone and increasingly alienating america's allies at the g7 summit the presi

nonetheless, all of the stocks, daimler, bmw, volkswagen, a rough month.if there's more in the weeks ahead as they work their way through the trade tensions >> phil, so to what extent could this be the management of the companies that don't want tariffs trying to torque up how severe the impact could be clearly, the tariffs have not been changed in the short term they are predicting impacts in the future could they paint a doomsday scenario in the hopes it either gives them easier targets to beat in the classic sense or because it impacts politicians >> less that they are looking to have easier targets to beat in the future i think that it's basically looking for a little cover here, wilf what you're looking at is a situation where the tariff costs have not gone up, but it's the anticipation of it that is one of the factors is cited here, and at the same time, sales of suvs are swing down in china. there's other factors behind that including increased competition from domestic auto makers in china who are increasing their suv production so a lot of people

daimler has big factories in the us that export to china.. as we've been hearing, the bank of england's decision making body, the monetary policy committee, has voted to hold interest rates at 0.5 but the way in which voting was divided is interesting. the nine—member mpc was split 6—3, with bank governor mark carney leading the group who voted to hold rates at 0.5%. in a decisive move, andrew haldane, the bank's chief economist, joined two other monetary policy committee members in voting to raise rates to 0.75%. the last time three people "dissented" from the overall view, injune 2017, rates rose the following november. joining us now is sarah hewin, chief economist, europe, standard chartered you reckon the same pattern, we will see rates go up in august? we think rates will probably go up in august. if you look at what the monetary policy committee said today, they talked about strong household spending, strong confidence, employment doing well, business sentiment improving and even the global economy, they expect, will be a strong sourc

>> it would be a challenge for merced mercedes, but look at the big picture, daimler, besides mercedesn the united states, it is a global brand, in fact, they probably earn more profits in china than they do in the united stas and earn a lot of profits in europe, but cars, daimler is the biggest truck maker in the world, and we're just starting to get in the sweet spot of thuck cycle, and then besides the nasty headlines, you have to look at the price yore paying for daimler as a business. you're paying just under six times earnings for a company that's yielding almost 6%, and that's with barely a 50% payout ratio so 20 billion net cash bill on balance sheets, earning good profits, and yes, again, headlines are scary, but when you look at the big picture, we think, actually, daimler is sellinain basement prices at six times normal earnings yielding almost 6% >> david, great stuff. leaving it there thank you very much for joining us, david herro from herro associates >>> why one says capitalism may nid. to be moderze those comments are next and much more here on "closing bell," don't go

daimler down almost 5%. all of their automakers were down. amidnalyst was skeptical, underlying problems, this is one way to mask them. there were other stocks definitely down on the day, analysts citing concerns. boeing, general dynamics, they are in the aerospace business, very exposed to concerns. apparel makers down across the board again on these specific concerns. yvonne: and su, the big sigh of relief for investors is the largest u.s. banks. they all cleared the first round of fed stress tests. su: we are seeing a lot of them them. you could see a relief rally tomorrow. let's go right to the after-hours chart. again, all of the 30 plus banks passed. it is the third straight year. the fed said all of these banks could survive an economic downturn. goldman trailed its peers on leverage. they are going to send the fed some kind of a hey, take a closer look at this or that. seeingstanley also grades -- that the fed's does not reflect their numbers. ratio, youto book are looking at u.s. stocks. these are s&p 500 banks. broadly positive for

are you starting to look at the earnings estimates warning about tariffs, daimler on the side of the pond? it is beginning to trickle isn't it? doesn't trickle turned to a flight when it comes to quote companies warning about the trade? clearly theen second quarter earnings season will be kept watch is to. for aright issue or just few companies? as long as it is contained it should be fine. our view is it is probably for 2018 we should not see too much negative revision. see what it means for 2019 depending on how long the trade war last. >> did the earnings season take hold of the equity market or is it still going to be pushed around by pronouncements from the white house? war and allhe trade the headline around that will have an impact. it is going to be a good time for investors to focus. right now we can do is shield for what could be the impact. this will be our first chance to see what is the impact over the small window that we have. it will be easier for investors to realize the actual strength that the trade workers represent to earnings. >> where are the fundamental strong

daimler underperforms with its issues of regulations. reports of a german foundper that the kba five unapproved software functions within the car. we could see as many as one million cars being brought back in germany, being recalled. that report sending daimler that much lower. bank that didn't look good in england. optimismdown, no around the new chief executive strategy which flatly close today. look how much we fell in earlier trading. this is we heard from the first time the strategy with him saying $17 billion, i can pour that into key asian markets and technology. overall the market shrugged his shoulders. vonnie: here in the u.s. we are getting more reactions to the g7 fallout including a weaker mexican peso. almost 1% weaker. the two-year yield is up as well. you have the fed meeting this --k and that's brought the below 40 basis point range again and the dollar index is weaker. 93.48. crude oil here on an imax is stronger by about 4/10 of 1%. the spread is still there. let's go to gmm. you can see earlier this a lot of relief a

the german government has ordered car maker, daimler, to recall more than 200,000 vehicles in germany they were found to be fitted with emissions—cheating software. across europe, nearly 800,000 vehicles are thought to be affected. welcome back to singapore. i'm babita sharma with our special coverage of the kim—trump summit. the us president says the world will "know soon" whether a deal can be struck with kim jong—un. half an hour away from the start of the summit. in 20 minutes the delegation will make their way across the gateway that takes them straight to the resort island where, of course, the hotel is. this was a short while ago. the hotel is playing host to the talks on an island cut—off from the rest of the busyness of singapore. singaporean authorities said the two men can engage in conversation together and alone and in the privacy of what has been billed as an historic moment. the bridge can see, the sentosa gateway, 800 metres, it takes you to the centre of the island. some people are saying perhaps donald trump will feel at home on sentosa, an island full of luxury hote

german car giant daimler, owner of mercedes benz, has warned profits will fall this year because of trade profitable sport utility vehicles which it makes in alabama for export to the rest of the world. the european union will launch retaliatory tariffs against us exports on friday, including bluejeans, motorbikes and bourbon whiskey. the move comes after president trump imposed steep duties on steel and aluminium earlier this month. and now — what‘s trending in the business news this morning. cnbc has calculated that trump‘s trade fights have cost the stock market trillions. it suggests trade is one big reason stocks are flat this year despite strong economic growth and corporate tax cuts. up next — newsbriefing. we‘ll take you through the stories making headlines in the global media today including: the chancellor is to admit for the first time that taxes will have to rise to cover the costs of increased spending on the nhs. in a speech tonight, philip hammond will say that any increases will be done in a "fair and balanced way". he will also make it clear the government will stick to i

daimler has consistently denied cheating and has escaped more costly measures such as fines.the cryptocurrency selloff is , eroding more than $40 billion of market value and than 50%. the 2018 slump to more some analysts pin it on a hat on an exchange and south korea, while others point to a clampdown on trading platforms in china. crypto venues are under scrutiny following thefts, market manipulation, and money laundering. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ul allen. this is bloomberg. david: we have seen the pictures. they are meeting right now, two of the world's most unpredictable leaders under one roof. we now go to our chief north asia correspondent, stephen engle's, on the ground for us. steve, what is happening right now? stephen: that is a better question than the last question i got. someone asked me, is it going to plan? what is the plan? you know something i don't know? that is what we are here for, we don't know the outcome. these deliverables have not bee

. >> daimler is the first major corporation to blame tariffs for lower profit outlook.nwhile, india has raised tariffs on imports to the u.s. >> india has hiked tariffs on items like chickpeas, walnuts, apples, boric acid, among others, clearly in retaliation to the increased duties on aluminum and steel that india believes hurts domestic industry and more importantly, leaves it violates global trading rules. >> daimler is wasting the white flag, even before the trade war takes off, so are they using this as an excuse? it could be this is the business just not performing as it should be in china and they preemptively come out with this today. if we see other carmakers following suit, maybe the skepticism will subside. at the time, it is unclear what is behind this. >> great british pound, popping after more than two weeks. that is after the boe's chief economist supported a rate hike, boosting prospect. >> the bank hypothesized slowing growth in the economy and now what it is seeing and thinks is it is right. it thinks it is temporary. he thinks he has seen enough and w

. >> daimler is the stock of the day in europe, lowering its guidance, citing chinese tariffs on u.s.orts. the first german automaker to issue a profit warning around trade tensions and some analysts say it may not be the last daimler is under pressure, volkswagen, bmw also trading down on this news. keep in mind among 235 fund managers surveyed by bank of america, merrill lynch say trade war was the most commonly sighted risk to markets. big day on the central bank front, switzerland, norway and england keeping their rates on hold bank of england did say the recent slump is temporary. confidence is picking up pantheon macro says it is more hawkish. it doesn't expect to wait much longer till rates move to the upside the pound is rallying on that, about .6% on the u.s. dollar morgan, back to you? >> thank you, seema. seema mody at hq >>> stay with us on "squawk alley. at the marine mammal center, the environment is everything. we want to do our very best for each and every animal, and we want to operate a sustainable facility. and pg&e has been a partner helping us to achieve that. we'

if you look at these stocks over the last month, it's like this daimler, it also matters that they -- they're at, what, the lowest point since 2016? >> yeah and now there's some -- eu is doing some studies on what a 20% tariff would do to u.s. sales. and it's not pretty. >> no. not at all. >> phil, thanks. >> you bet. >> and coming up, big tech feeling some pain, following the supreme court's decision, changing up the rules on tax collection a pair of e-commerce ceos will join us for what it means on their bottom lines first, trouble for tesla why one analyst is questioning the company's accounting anyone can get you ready, holiday inn express gets you the readiest. because ready gives a pep talk. showtime! but the readiest gives a pep rally. i cleared my inbox! holiday inn express, be the readiest. when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. >>> supreme court handing down another decision today this time on wireless location tracki

. >> think about the daimler warning.aimler is saying they are seeing effect on sales from the trade tension and that absolutely flows through the gm and for. think about where the make america great heartland is includes michigan and ohio and workers there who will be affected by shorter shifts and less money in their pocket if this trade tension, trade war -- important segment to the political base of trump. i just want to finish this point. i think this will be resolved this trade tension i think it will be resolved at least two months before the mid-term elections it has to be >> you don't think though the broader market however you want to characterize it can start to catch up to the nasdaq until some of the trade stuff -- >> that's what i'm saying. let's think about fact the s&p 500 has been basically stuck in a ran for five months, roughly 2,600 on the down side, 2800 to the upside. it won't break out of there until these trade tensions are resolved >> we've seen some downgrades including today on some industrial s

more to the point, daimler indicating that.t did you make of that. >> neil, you and i have been having this conversation for months now. we talked about the fact that once we get into a tariff tit-for-tat, what will happen is, prices on american consumers will go up, the cost of automotive production in the united states will go up. also we'll invite retaliation from our trading partners. you know, i am concerned that we've gotten to the place i feared we'd be. neil: so it is interesting that, i never thought of it this way, obviously dimer, a lot these guys, volvo, they have u.s. operations, so they would be directly impacted if all of sudden china goes after u.s. carmakers, et cetera, but even those that don't, or don't have as big of a presence as daimler were he can -- echoing similar sentiment, but it would boomerang and slow down? >> think about it for a second, this is an alabama company we're talking about here. let's step back. china, is our second largest automotive trade market. in other words, african today, we send

daimler's etruck will go into production in 2021. facebook is teaming up with media to launch news programs. facebook will pay for the shows which will appear exclusively on its watch video service. it's part of the company's push to repair its relationship with the news industry and restore user trust in the wake of fake news and privacy scandals. >>> i'm dennis o'donnell. coming up from cleveland, why there won't be a warriors letdown in game 4. that is straight ahead. introducing jack's new $3 sauced & loaded fries. you get our hot and salty fries, smothered in cheddar cheese and creamy guacamole plus your choice of 3 tasty toppings: tender carne asada, savory chorizo, or chipotle chicken. each for just 3 bucks. so tonight, kick the party in your mouth up a notch with jack's new $3 sauced & loaded fries. only at jack in the box delivered exclusively with doordash - order now. >>> klay thompson and steph curry were a combined 7 of 27 shooting last night, which proves why the signing of the kevin durant was so incredibly valuable to

. >> daimler has been ordered to recall 774,000 vehicles in europe following an accusation it used illegalevices in its diesel engines. the move follows consultations with the german government in berlin yesterday, which the ceo called constructive. the carmaker escaped more costly measures, such as fines or a hardware fix that has been very important to the auto industry and the german government. >> the cost is very low. it will cost them something like $75 million, $80 million max. the software will be approved by the german authorities. we have seen that before, in multimillion vehicle recalls from audi and volkswagen. these goals are immaterial. what is important is they have a solution now. they make peace with berlin, and they get the cars properly fixed. >> shares in chinese telecom equipment maker zte took a dive after it agreed to pay at least $1 billion in penalties and overhaul its management -- one . this as part of a settlement that allows it to resume business after two months hiatus. apart from the billion-dollar fine, what are the implications for zte? >> well, $1 billion

daimler's warning coming as europe gets ready for retaliatory tariffs against the u.s.ginning tomorrow the eu will charge import duties of 25% on range of u.s. products. things like bourbon, something the europeans could probably do without, and harley-davidson motorcycles. where do we go from here? james freeman, "wall street journal," and good to see both you guys. james i want to point out, a lot of german automakers perhaps concerned about the hit to earnings, they are advocating for a zero percent tariff both ways. this might be one where business is able to help influence policy a little bit because it is meaningful for their bottom line. i don't think it is all bad if we actually get to a place ideally we're in a 0% tariff world. your thoughts? >> that is the best news wee seen since i don't know if we call it a trade war, this trade dispute began. like most investstores telling us with stock decisions i don't see a whole lot of upside but this is encouraging. when president trump said let's have no tariff zone at g7 meeting, a lot of people laughed at that. tris

the german dax down as we saw the daimler story come through. pound got a bump up yesterday from the story out of ink of england, the chief economist voting for a rate hike, but we are two years from the votes. we are trying to figure out where we are. the pound is kind of at the same level it was two years ago and you get the sense the sellers are out there. renminbi continues to be a story of debate on the market live blog at bloomberg this morning on whether this is a currency showing stein -- signs of stability or there is further weakness to come. oil is the main story. brent trading39, at 74.01. let's get a first word update with debra mao. debra: greece's euro area creditors struck a landmark deal to ease repayment terms on some of the nation's loans in an effort to ease its mountain of debt and clear the way for it to exit the lifeline that has kept it afloat since 2010. the debt compromise comes after months after acrimonious talks and just as athens is set to end its bailout program in august. a deal that has long been seen as a key in

around the same time other consider makers including audi, porsche and daimler came under scrutiny. this year just three years into the job v.w. sacked their c.e.o. and replaced by the machine -- man on the right. no official was given and the audi boss rupert stadler in custody one thing is clear. it is far from the end of the road for diesel gate. let's get more on this from our correspondent on ground. thanks for joining us. what are you hearing on the ground? how does this resonate with people here working there behind you? >> well, it is tense here and with the workers behind me out of the gates. i tried to talk to quite a lot of them but nobody really wants to speak to me and people are avoiding me by going on the other side of the road. i understand that because they are probably fed up that journalists like me have been pestering them for close to years around trying it talk it them and top executives like one right now who just drove past us can go by in their cool cars and don't have it talk to us. and they are responsible for it. >> you just mentioned nobody wants to talk

. >>> daimler -- don't know if we want to get into the whole rapture thing. fascinating.upposedly it starts now, but it could take seven years all kinds of stuff appens. >> what in the world right now mriltical icall politically or otherwise makes it look chaotic. >> don't you see the parallel with calling a crash, though >> i do. >> it's going to be right some time >> there's no way the rapture -- we have the right guy for it. >> also hindsight. the 50s in some ways -- >> turbulent >> civil rights. cold war people thought it could be over at any moment. >> my mom was trained on how to get under a desk and cover your head during a nuclear strike >> andrew wants to go back to -- he's not here. >>> daimler issuing a profit warning as trade tensions heat up between the u.s. and china. the automaker seeing retaliatory tariffs on vehicles built in the u.s. would hurt sales of the suvs it produces at its factory in alabama daimler says the impact cannot be offset by shifting vehicles to other markets 2018 pretax profits from mercedes-benz are expected to dip slightly lower from

. >>> the german automaker daimler unveiled an all electric big rig truck.e freight liner ee cascadia is a trailer with a 250-mile range. it will be marketed for regional distribution in port services. the etruck is expected to go into production in 2021. and will ihop soon become ihob. it's been around since 1973. the pancake breakfast chain is teasing a name change. they want to replace the "p" with a "b." what could the "b" stand for? breakfast? burritos? bacon? >> i don't know, but i'm in. looking at that video just made me very hungry. >> of course. still i love the ihop name though. it will be hard to change. >> absolutely. diane king hall at the new york stock exchange. thank you, diane, as always. >> thank you. >>> still ahead, play ball. congressman steve scalise returns to the baseball field a year after being wounded in a shooting. child: bye, grandpa! and if you have heart failure, entrusting your heart to entresto may help. entresto is a heart failure medicine that helps improve your heart's ability to pump blood to the body. in the largest hear

higher in after hours and also finished the regular tradi day up 1% to $13.23 >>> german automaker daimler is issuing a profit warning and it's blaming the hiu.s. trade fight. the company cited the potential for higher costsesulting in increased import tariffs for market.s into the dmies it also said mercedes be-benz ss have been softer than expected. they back the idea for abolishing all tariffs for cars between the european un be onand the united voates. >>> v is the latest member to add a plant in the southern united states. the facility outside charleston will build cars and suvs that will be sold here in the u.s. andd expor overseas. phil lebeau is in ridgeville, south carolina. >> reporte . >> i would officially declare r thehmond plant open for business. thank you for coming. >> reporter: the pre-production work is just gettingstarted, but it won't be long until 4,000 volvo workers are cranking out nished cars from th company's new plant outside of charleston. >> we need to come closer to customers to be able to continue growing. we need to know how they think and need to know their

the german government has ordered car maker daimler to recall more than 200,000 vehicles in germany afterwere found to be fitted with emissions—cheating software. across europe, nearly 800,000 vehicles are thought to be affected. now on bbc news it's time for hardtalk. welcome to hardtalk. i'm stephen sackur. the afghan president ashraf ghani has ordered an unconditional ceasefire in the army's military campaign against the taliban. but afghans can be forgiven for being sceptical. the pause is forjust two weeks. the taliban has given no sign it will respond in kind. and the broader security economic and political condition of the country remains parlous. my guest is abdullah abdullah, chief executive officer of the afghan unity government. do he and president ghani have a coherent plan for rescuing afghanistan? abdullah abdullah, welcome to hardtalk. thank you. let's start with this declaration of a ceasefire from your government, unconditional for the first time, albeit lasting only for roughly two weeks. what does it mean? a few days ago, in a conference of afghanistan ulamas, or cleric

the german government has ordered car maker daimler to recall more than 200,000 vehicles in germany after

it's the sedan that's what their worried about. >> thank you, phil phil bringing that word that daimleron earnings >>> shares of iac meanwhile have soared more than 30% this year up next, ceo joey levin explains what he's doing to increase competition including from the likes of facebook d azanamon your thing. v nr get all the good stuff about tv without all the bad stuff. yes! you can still stream your favorite shows... yes! ...with no annual contract. wait, what? it's live tv. yes! with no satellites. what? and no bulky hardware. no bulky hardware! isn't that great news? yes! noooooo! no! noooo. try directv now for $10 a month for 3 months. more for your thing. that's our thing. visit directvnow.com >>> welcome back shares of internet company iac are over 30% higher for the year and have recovered those losses after facebook announced it would launch a dating feature in may. that was to compete with match and tinder which iac owns. iac is purchasing a stake in hinge. it's not just dating i ac's list includes angie's list and home adds visor they continue to battle it out with youtube

daimler has denied cheating and escaped more costly measures, such as fines. the crypto selloff is deepening nd wiping $40 billion. it's extending the 2018 slump to 50%. they pin the retreat to an exchange in south korea and thers say it is fromal clamp down. and market manipulation and money laundering. ♪ >> still ahead, just hours ahead of that summit and dig into the role of economic sanctions with global financial services. up next, what is kim jong un looking to get out of these talks. ♪ >> and seeing unified korea and using that as an element in its containment strategy towards china. >> when you think about what the united states is actually willing to depiff the north koreans, the north koreans are not going to depiff awayir nuclear weapons. what is the price here, really? and some assurances are going to have to be offered. you might get a declaration of an intent to replace the armistice. but i don't think the united states will sign a peace agreement with the nuclear north korea. >> that was the global reaction ahead of president trump's summit with

volkswagen and daimler but the losses.eatened a 20% tariff on european cars imported in the u.s. that this -- if the eu doesn't take down trade barriers of its own. bmw is warning of a pullback in investment in the u.k.. if the final phrase it does not ensure free flow to the eu. uncertainty of negotiations is not helpful. customer arrangements reveal a cause for concern. that is it from us on daybreak asia. time to look at what is coming up on bloomberg markets. heidi: -- i: we are washing this go into this market in hong kong. as will be the day that we see that 20% decline. theill be speaking to greater china economist about the implications of this doubling downthe that we saw. will be key.yuan we will see potential for the weakening on account of a declining cross-border investment. take a look at that and also a preview, we are getting a check for pmi's over the weekend as well. we will be speaking to the morgan stanley chief of asia and emerging marketing equity strategist as well over the next couple of hours. morg

volkswagen and bmw are picking a different lane from daimler.h companies are leaving their earnings unchanged for the end of fiscal year. the confirmation comes after daimler cut its outlook. vw has little u.s. china exposure although they both export suv's to china from the u.s.. a surprised shakeup at the top of the world's largest maker of semiconductors. intel has lived therceaft they learned he previously had a consensual relationship with an employee. that is a violation of intel policies. he was the ceo for five years. internet retail stocks are trending lower today after a 1992 decision was overturned. justices decided state and local goves collect sales tax from internet real tellers that don't charge tax to their customers. had protected retailers from collecting taxes if they did not have a physical presence in the state. that is your business flash update. we saw strong reactions. amazon the largest. thishad been preparing for and collecting the sales tax and getting its systems ready to do so. others have been less prepared. they wi

daimler took profit forecast down this week because of the number of suvs they make and shipped to chinathe products that would be hit hardest would be passenger cars. they make a lot of five series sedans in germany and shipped them to the u.s.. julie: what response are you anticipating? -- vonnie: what response to you anticipating? ford, will they have a response to this? >> i do not think they will necessarily speak up. they have been passive through this process. criticism deferred president trump talk about is the eu will not take our cars but it is difficult for trump to make that argument when general motors has pulled out of europe completely. they sold last year and they have looked into this idea of let's narrow ourselves down to the markets where we know we can get a return. they are primarily a company that has two big markets. the u.s. and china. they have pulled out of europe. it doesn't really make sense that europe won't take our cars when one of the biggest companies here isn't even trying to play in that market anymore. vonnie: they are saying build them here. they do h