sales in the us accounted for more than 14% of bmw and daimler sales last year, rather less for volkswagenome measures the world's biggest carmaker. now president trump is threatening to increase the current 2.5% tariff on eu—built cars to 25%. that compares with a 10% tariff for us—made cars entering the eu. president trump says the tariffs are about protecting american workers. the three german firms employ more than 41,000 across the us, and that could rise if bmw goes ahead with reported plans for a second us factory. but on the eve of the talks, germany's chancellor angela merkel reminded the three manufacturers that brussels is in charge of negotiating the bloc‘s trade policy. translation: these trade issues are unanimously decided by the european commission for all member states. at the same time, the german car makers are big employers in the united states, so there is clearly reason to talk to the us administration about issues such as investment and the future of the german car makers as employers in america. i'm joined by holger schmieding, chief economist at berenberg. good to

from bristol, connecticut, we flew to portland, oregon, home of daimler trucks north america, one of atproducers of semis, now work onutomating them. three years ago in nevada, daimler showed off its "inspiration," the world's first road-licensed self-driving truck. steve nadig, daimler's heador engineer f mechatronics, showed us the newest "freightliner" model.ll it hashe latest sensors and doodads, but can it operater without a dret? >> absolutely not. not at this point. >> reporter: all rig, when is that point going to be? >> at this point, i cannot tell you. incan tell you what we're to do, and daimler trucks are going to take it step by step, safety by safety, use case by use case, toake sure that we're putting the safest truck on the road possible. >> reporter: what we're likely to see, nadig says, at least in the short and medium term, is more automated features to make trucks safer and more fuel ficient-- automated transmission, of course; automated braking; auto-pilot for staying in the lane. but, look, in this wind tunnel, they're also still working on old-school stuff like

steve nadig, daimler's head engineer for mechatronics, showed us the newest "freightliner" model. sensors and doodads, but can it operate without a driver yet? >> absolutely not. not at this point. >> reporter: all right, so, when is that point going to be? >> at this point, i tell you. i can tell you what we're going to do, and daimler trucks are going to take it step by step, safety by safety, use case by e case, to make sure tha we're putting the safest truck on the road possible. >> reporter: what welikely to see, nadig says, at least in the short and medium term, isut more aomated features to make trucks safer and more fuel efficient-- automated transmission, of course; automated braking; auto-lot for staying in the lane. but, look, in this wind tunnel, they're also still working on old-school stuff likena aeroc styling to save fuel. and many of the new-fangled features are already available on cars. for 80,000-pound, 53-foot-long 18-wheelers, there's still a long way to go. in the next three years, says steve nadig, the most we're likely to see is platooning, where, to decre

top executives from daimler and volkswagen are set to meet the trump administration -- officials from the trump administration today over those threatened tariffs we are seeing the negative picture here in the auto space daimler down about 1.8%. volkswagen down about 2% leading those -- that weakness there the italian banks in focus today after italian prime minister joumanna bercetcgo conte is saying he could reasonably include a lower deficit. looking at the italian stocks, not a huge amount of movement. the biggest mover is ubi bank down 1.6%. >>> italy has increased efforts to solve its budget problems, that's according to the commissioner for economic affairs, pierre moscovici. he said talks were intense but have become more constructive over the past week he said the commission welcomed italy's reduced deficit target >> we've also taken note of the recent announcement of the last days in order to reduce public deficit in italy that's in the right direction. we are waiting for more details to evaluate the size of the steps. it's clear that we will need commitments which have to b

they own 10% of daimler. they will up their stake in china so they can have more state over the production. also, it'sabout that good to have an increase in china. how does that fit into these reduction shifts? is this just streamlining and cost-cutting? david: i don't know. we will have to ask daimler. i think it three enforcement that we want to make cars where the biggest growth is. china has been saying we will liberalize and allow people to own more joint ventures in china. they are saying we are open, responding in part to president trump. alix: come and give us your investments. it's -- the story has to be. david: there is a huge commitment to electric vehicles. mr. kudlow said we will pull off those investments here. the u.s. and china are diverging. china needs a lot more electric vehicles. we're going to talk about mr. kudlow. he had something to say after the president said he had a deal. mr. kudlow said we have to move on it quickly. kudlow, they cannot stall this and meander this. to see confirmi

bmw and daimler are under pressure on prospect of new tariffs being introduced so far, daimler and bmwre down double digits in 2018. talk about the uk, adviser to the eu top court says the uk could reverse it and avoid brexit it comes as theresa may is trying to get parliament to pass her brexit deal. that vote coming on december 11. the pounld is rallying against -- pound is rallying against the dollar the central bank said it may lower rates after the latest showed consumer prices are falling more than expected this is a country with a benchmark rate of 24%. one of the highest in the world. any signs the country will lower rates being welcomed by investors. >> thank you >>> let's get a news update and get back to sue herera >> good morning, carl. thank you. good morning, everyone here is what's happening at this hour white house economic adviser larry kudlow telling reporters the 90 day truce in the trade war with china is a huge first step and he is opt missiimistic a del get done. >> i heard many times president trump says they have a real friendship there was real chemistry betwee

daimler is still internal combustion engine., is internal combustion engine. tesla, completely, totally electric. ok, the difference between those two categories is huge. until committees say no, all of our dna should be zero emissions -- until companies say no, all of our dna should be zero emissions. i am not sure the goliath triumphs. carol: i do wonder though, considering the year in elon musk has had, is very volatile, has really, and he skirted close in terms of regulators and oversight. does that get him in trouble? matt: he is still ceo. there's no question there are video sequences -- idiosyncrasies. but what are the shareholders saying and doing with a product? he has more loyalty, tesla has more loyalty, in shareholders than gm does. in this article today, mutual more enthusiastic about tesla than about any other car company. it is a marvel when you think about it. investors can put their money where ever they want. carol: whenever you bring up tesla and you bring in investors, you get heated people on both sides. dav

but bmw, daimler and volkswagen need to find a way out of the looming trade spat. also in the programme eurozone finance ministers reach a deal to protect the euro against future crises, as they again warn italy needs to change its budget. markets are looking like this... and oil is back on the up.... as qatar bows out of opec. we'll look at what's moving the markets and why. and we've all heard the saying take care of the pennies and the pounds will look after themselves but it can really be made to work in the digital age? we'll speak to the founder of an app trying to make that a reality. today we want to know there is a report out today in the newspapers that one school in london has had to take the step of capping what parents give to teachers as gifts, as luxury handbags and dinners out at the michigan starred restau ra nt dinners out at the michigan starred restaurant or on the menu. we ask, is that right, should teachers get gifts at all, what is the balance? let us know — just use the hashtag bbcbizlive hello and welcome to business live. when it comes to

bmw arethat daimler and talking about getting together on making some key car components.e want to turn to mark crumpton. trump changedt u.s. policy in syria, declaring victory over islamic state and ordering american troops withdrawn. the move appeared to take the pentagon by surprise and could make kurdish allies honorable to attack by turkish forces who consider them terrorists. the united nations says 100 thousand people have been killed and unicef tells bloomberg that more than 7000 children have been killed or injured. federal government has placed more than 14,000 children in its care in mass detention centers and residential facilities with hundreds of other kids. reportsciated press that confidential government data shows the shelters house fewer than 3000 migrant youths when president trump took office. they spoke gave access to more user data than previously disclosed. the social media network allowed more than 150 companies to .btain personal data amazon was permitted to obtain user names and contact information. and spotify could read users' private messages.

. >>> and europe's auto supplies index hits the lower point since 2016 with daimler at a five-year low over trade tension concerns. >>> good morning let's look at how markets are doing. u.s. markets were closed yesterday after president bush's funeral. overnight risk was really focused on these stories the story that the cfo of huawei, one of the largest tech companies in china, their cfo got arrested in canada at the requr request of u.s. authorities. that sent ripples through equity markets. the nikkei trading at the lowest several since october 30th chinese equities are trading lower as well. steep declines after the beginning of the week, we thought there would be a detente after u.s./china trade relations. after the arrest of the cfo, lots of questions about what that means for china/u.s. trade talks and this 90-day trade truce. in europe, the stoxx 600 trading about 1.5% weaker. about an hour into the session this is what the picture is like across the board all of the major bourses trading in the red ftse 100 below that 7,000 line, that mark in the sand. 1.5% weaker. in terms of

daimler, bmw. also look for movement in suppliers.toxx 600 auto sector very high beta sector, likely to move more than the market as its lost 20% year to date. all of these companies potentially big movers. anna: thanks very much. you can get all of the stocks we're watching. first go is the function on the bloomberg. back with the open next. this is bloomberg. ♪ anna: less than a minute to go. let's have a look at how the markets are positioned, 43 seconds to go until the market opened. rallying on positive headlines out of italy. we spoke to the european commission. he's here's friendly tones from both set -- hears friendly tones from both sides. oil prices trending much higher, more than 4% on cpi and brent. the saudi russian pact is still intact as we had towards the opec meeting, even as qatar is cutting away from the rest. picture on the chinese equity markets. doing well compared to the rest of asia, positive coming through in the equity story as a result of what we've heard from the g20 in argentina. with this picture on the f

right, collaboration has become a big theme in the industry and last night we reported that daimler and to are in exploratory talks for deeper collaborations that could extend to making vehicles together. everyone is partnering up, ford might be with volkswagen, fiat chrysler with its provider and now bmw and daimler. what is the story with stagecoach? >> there was an announcement that stagecoach is selling its north american business to variant equity partners for $271 million. a 20 year involvement for stagecoach in this region and the prices morning is a little bit disappointing but they are saying clear strategic rationale for this deal allowing it to focus on its u.k. operations. matt: let's get to you on ab it a beer maker or will it by him -- by weed? >> they are spending $100 million on investing with the research company that looks at canadian pot hoping to diversify their business. matt: those of the stocks to watch, the market open on the other side of this break. anna: a minute from the start of the cash equities trading day this thursday. let's see how we are positioned aft

german carmaker daimler is planning to purchase battery cells or if more than 20 billion euros by 2030that is part of its effort to mass produce hybrid and electric vehicles. the company is one o of her vote german automakers ramping up electric vehicle production him as a european regulators clamp down on a diesel emissions. them or needs battery cells to expand its global network in germany, china, thailand and the united states. that is a for business, here is an update to the breaking story we're following tonight reports. say gunshots in the city of strasbourg in france have left several injured and one dead. it was said to be close to the christmas market in the center of the city. the french interior minister has called on the people of stress work to remain indoors -- of strasbourg to remain indoors. you are watching dw news. brent will be back to take you through the day just after the break. stay with us. ♪

heavyweights like siemens, daimler and other companies wanted to do business there.ut washington's foreign policy has since started to strangle iran's economy. and iranians are bearing the brunt. reporter: at first glance, everything seems to be running normally in this pharmacy in tehran. but more and more often, pharmacist navid, who does not want his real name mentioned, has to tell his customers he does not have their medicine anymore. >> we have customers who have undergone open-heart surgery and those medications are vital. when they stand in front of me and i have to tell them that they are no longer available, you can see the fear in their eyes. reporter: the majority of iranian pharma imports come from europe. the u.s. sanctions have caused one massive problem for eu-iran trade -- the payment system. we visit the bank melli iran in hamburg. it forwards iranian company payments to respective banks of german companies. but now european banks are part of the boycott, according to the managing director. many companies fear the u.s. sanctions. >> the banks do not

i joined the daimler mercedes-benz board in germany, a very male-dominated industry, but the eu legislation and the commitment in germany itself, what was a glacial pace for women in management and boards accelerated quickly to 30%, and it changed a little bit of my lens. i am optimistic. i think we are getting an inflection point. there will be two steps back, one forward, and not every law will be perfect, and it will be complicated, but these are important things, equal pay, whether it is legislated women on boards. look at the consumers. when i was in the auto industry, 80% of the customers' passenger car decisions are being made by women in the household. there is a business reason, and the case has been made over and over again. so now, it is not should we do it, but how do we do it come and men have to be a part of this, not just women. david: you have made a lot of decisions over the course of your career. i wonder if there any decisions you made over the course of your career that you were wrong about. andrea: so many, david. ♪ david: andrea, you've gone on to run grameen america.

but daimler has said that it planned u.s. investments. they are u contingentn no new trade barriers. and the ceo of vox wagon says he is working on alliance wh ford increasing capacity in the united states. >>> another apple supplier is warning of slowing sales. logicchip maker cirrus says weakness in the market could cause third quarter earning to come in lower than expected. comings on the heels of apple suppliers reducing out looks in recent weeks. >>> and apple is now reportedly turning to promotions to drive sales of iphones. bloomberg is reporting now gnat tech giant mass instructed some of its marketing staff to sto working on current projects to focus on improving f demand the company's newest iphone. sincehe initiative apple has offered a number of of trade in offers that reduce price on iphones for sale currently. >> does all of that mean the company may have reached peak iphone sales? if so what does it mean for the stock? we are joined by timothy lefkoe thanks for beingitus. >> thanks for having me. >> is it that iphone sales

vw, bmw, and daimler, all seeking to persuade the president not to make good on his threats to raiseariffs against european carmakekers. reporter: the u.s. market is exceedingly important for german carmakers bmw, mercedes, and vw. although the market as a whole is shrinking, the german share of it is growing. that meansns jobs. in their three u.s. plants, the companies employ a total of over 49,000 workers in production and supply industries. they make a total of 1.3 million cars a year. the u.s. side in the talks will certainly be interested in the company's investment plans. interestingly, the largest vw plant in the world is in spartanburg, south carolina, where the company has already invested $9 billion and a further $800 million planned by 2021. those investments could be reduced if import tariffs s are imposed d on bmw aos.. brussels is determined not to allow talks between german compmpanies in t the u.s. govert to undermine the u.s., eu trade negotiations. >> this is not about some kind of trade issue. questions of trade are dealt with by the european commission on behalf o

meanwhile daimler's ceo said that their planned investments here in the u.s.are contingent on conditions remaining the same in other words, no new tariffs he said that the tariffs were not an exclusive point of discussion, but that it was implicit sort of understand wlil of the discussions and he felt the threat of future tariffs has been reduced >> all right thank you. and phil lebeau, any surprises here we're sort of expecting the vw qvc to make so ceo to make some sort of a gesture. >> yeah, they really haven't put the effort in that they need to do be a true player in the united states. i'm not surprised by any of these comments people say why don't the german automakers build are more cars in the u.s. instead of importing them from germany. think about it from the german perspective. who owns stakes in these companies? the german government owns stakes they need to keep their capacity utilized to the fillest in germany. so if you were to say okay, well, let's start building bmw cars here, not just suvs, where are you going to take that capacity from? are

that your daimler or bmw has. they have not gotten caught up in that tariff selloff trade.ieve they also have new product restructuring this year for -- next year. in terms of what we can expect from europe next year, how critical is the euro going to be? if we see this fading of dollar strength, that could be a major headwind for european companies. >> part of the recovery that we saw last year was due to the euro. as much has not come up as trade or economics. it could become a big headwind to these european importers. it was like every company report out of the euro is -- out of the eurozone was talking about the headwinds the euro is posing. they didn't talk about it when it was a tailwind. from my reporting, i have seen trade politics become more prevalent in earnings releases. when it comes to cyclical stocks, the euro is not a headwind but when the earnings reports kickoff in january, that's something that investors will be paying attention to. do: can the european markets well if the banks don't do well? can the banks do well without the ecb starting to normalize po

daimler sources tell us it's looking to follow what bmw did a couple of months ago and try to take a chinese production are. it's one of the biggest producers of luxury cars here in china, which is the world's biggest and fastest growing order market, so very important for them. until recently they were restricted, that foreign companies could only hope is to percent or less of them. china has eased off and they will be ever to dominate or hold a majority control of them. bithis is seen as a little of a test of china's pledge to open up to foreign companies. it is probably only the tip of the iceberg and how this goes down, how it plays out and whether they have success with whetheren as opening up china really is serious about this reform and letting in foreign companies, or whether it is still intent on protecting the interests of its state-run companies. paul: the tip of the iceberg, apart from market access, what else is there? >> it is seen as progress. there has been easing all of the rules about restricting or a control in financial services and banking as well. from president

the goal of the german execs is avoid new auto tariffs we have seen daimler's outgoing ceo arrive atice building we caught up with him as he arrived. >> we don't know, we're optimistic >> positive way forward. what would be considered a positive way forward >> that's what we try to understand inside. >> we are expecting bmw's ceo to arrive the administration will be meeting with executives individually we're expecting a long day ahead. back to you. >> secretary ross on air earlier today talked about moving, trying to attract production specifically of evs. can you characterize that as a pivot by the administration or not? >> reporter: i think the goal is to expand manufacturing generally. secretary ross said earlier he felt a lot of german automakers in particular had already sort of tapped out their manufacturing capacity in the u.s. for traditional vehicles. so ev is one way they could expand they're looking to capture market share from other countries, volkswagon looking at building a new ev facility in germany and china as well. they want to make sure that that new manufacturing

shery: daimler has raised the prospect of boosting its stake in a chinese partner.carmaker expressed interest in increasing holdings to 65% from the current 49%. theanalyst says that 16%, addition, would be worth about up to $3.4 billion. both carmakers say that they are happy with the current arrangement. new: china has announced penalties for those companies involved in the theft of intellectual property, an issue central to the trade dispute with the u.s. a chinese correspondent -- a china correspondent has the story from beijing. tom, what do we know? tom: we know the national development reform commission, the state planning group here in beijing, announced the punishments yesterday. these can be applied to those companies or firms that steal intellectual property. they will kick in this month. they include, for example, a ban on the companies if they are caught from issuing new bonds. it bans them from benefiting from government financing. it restricts them from foreign trade. they may also have their names, the names of the company or executives posted on a w

tesla, also good for german automakers, they are leading exporters of cars from the u.s., bmw and daimler i would call it a red letter day. still ahead, an exclusive conversation with the credit suisse ceo. the bank announced billions and buybacks and he says the rebound is working. and coming up, more of the week's top business headlines. france's president promises more spending, a pledge that could cause another headache for the eu. out rules are applied when it comes to different member states. juliette: this is bloomberg. ♪ . ♪ juliette: this is "bloomberg best." let's continue our global tour of the week's most important business stories in india, where the head of the central bank unexpectedly stepped down. india's central bank, the head of the central ink unexpectedly resigned the midst of repeated clashes. >> these concerns were definitely scripted for quite clashing with rbi the government. there was a lot of uncertainty because of the meeting coming up , but also the statewide elections, which could signal how much strength narendra modi as going into next year's national elect

right behind me in the executive office building, the top german daimler, volkswagen, and bmw meetingp economic officials. we just received word that president trump himself is actually currently set to meet with those automakers from germany. they do not want to see the tariffs imposed of the 25%. meanwhile, the administration facing pushback from domestic gm closing plants. they would like to see these automakers continue to make inroads in the u.s. has been toying with the idea of adding to their electric car outflow in memphis. and south carolina, a key battleground state. taylor: indeed. that was our chief washington correspondent, kevin cirilli. the uncertainty in trade is likely putting some pressure on risk assets today. today, taking a look at all the benchmarks falling more than 2%. for more on this selloff, i get to welcome the head of macros strategy, thanks for jumping on the call. is this all about trade ? peter: a lot of it is about trade. madef the right noise was on saturday night, sunday, and then it started breaking down. we were sending mixed messages are now we ar

look at shares of daimler and bmw.son we show you these, they have the largest presence in the u.s. in terms of vehicles manufactured here and shipped to china. and you're seeing not a huge reaction from the stocks today we're also showing you tesla because when you look at tesla in china, and we have been there, we have been to a number of their facilities over there, the reason this is critical is because china is the number one market for electric vehicles in light of changing tariffs, tesla cut prices in china for the model x and s, bringing them back where they were before july the idea here is that this could spark additional sales in china for tesla. again, that's the future for tesla. that's the reason the stock is moving higher, one reason it is moving higher the last couple of weeks. also, shares of general motors the reason we're showing you gm, the company put out announcement saying you know the 2700 jobs that they're in the process of eliminating at four u.s. manufacturing plants there are more than enoug

a company like daimler, $200 billion in sales, worth less than tesla.have a luxury premium. $70rnd from volkswagen, billion a year, the second or third largest spender in the world. , the7 billion a year second or third largest vendor in the world. i think there is some value there. dawance, thank you. vonnie: first word news now. >> the kremlin says that vladimir putin was not insulted by donald trump's refusal to meet with him on the sidelines of the g20 summit. president trump canceled a planned meeting following the seizure of three ukrainian naval vessels and their crews. the kremlin says putin says there are issues the two sides need to take care of. and closing a passageway for a third of all oil traded by see. speaking on state tv today, the president said if the u.s. decides to block iran's oil exports, no oil will be exported from the persian gulf. the striait is crucial to global energy supplies. in washington, crowds streaming into the capital to say goodbye to president george h w bush. he will lie in state until tomorrow morning, when serv

daimler, st a micro, lvmh -- falling., lvmh lvmh is going to buy a company for a 40% premium from yesterday's. investors might think that is overpaying. that is why we are seeing shares lower. -- we have cells falling in for november. they declined 8.1%. the third month in a row we are seeing declines. this is taking some analysts by surprise. the rebound is proving more stubborn. stm micro. a story of apple voicing some concerns. this is over the lawsuit with qualcomm. apple is saying it could be bad for the industry and really hurt their position. >> i want to update you with some disappointing dado pierre getting out of france. pmi, wes the composite are seeing the french composite pmi plunged to its lowest level since february of 2016. 49.3. to 50.7. the forecast forecast ofed the 50.7. hitting a level we have not seen since february to the -- 2016 in terms of the downside. the european central bank its stimulus program with bond buying finishing this month after almost four years of easing. mario draghi warned that risks to the euro area economy are worsening due to geopolitics and trade

volkswagen, bmw, and daimler have the most use.ll go ahead with his tariffs. >> they said they had a constructive meeting, and they tried to make the case to the president about the investments that their companies are willing to make in the u.s., and how that would impact domestic jobs. volkswagen really eyeing chattanooga, tennessee in particular, about opening a plant. on the flipside, they don't want that 25% tariffs, which is something they tried to make case to trump in the other economic advisers. they said they were not able to get a concrete deal. a lot of volatility and angst in washington, d.c. reverberating in the market heading into january and february of next year. ♪ rolls outm has rolle any chance to return to a bid for semiconductors, this after china opened the door following the g20 talks to looking at qualcomm and xp. why would that leave it at this $44 billion deal? >> i think this is really a case that it has already failed. qualcomm has connected a buyback program and is using cash that had previously been ea

they are leading exporters of cars from the u.s., bmw and daimler. would call it a red letter day. juliette: still ahead as we review the week on bloomberg best an exclusive conversation -- withhe credit card the credit suisse ceo tijane thiam. the bank announced billions and buybacks and he says the rebound is working. and coming up, more of the week's top business headlines. france's president promises more spending, a pledge that could cause another headache for the eu. >> it really does call into question how rules are applied when it comes to different member states. juliette: this is bloomberg. ♪ ♪ juliette: this is "bloomberg best." i am juliette saly. let's continue our global tour of the week's most important business stories in india, where the head of the central bank unexpectedly stepped down. >> a shakeup in india's central bank, the head of the central bank unexpectedly resigned in the midst of repeated clashes. -- clashes with the finance ministry will over interest rates in will will >> these concerns were definitely scripted for quit

president trump officials at the white house going to be greeting the heads of three german automakers, daimler global trigon, and -- vw, and bmw. they will meet individually. what is top on the agenda -- jobs and tariffs. the german automakers do not want to see the administration follow-through on 25% increases on tariffs for german auto parts, and they do not want to see that trade deficit lower, from the administration perspective. that would be billions of thears in cars as part of $65 billion trade deficit the u.s. has with europe as a whole. meanwhile, jobs domestically also very much on the administration's mind, particularly as german automakers are threatening to open plants in china. look no further than tennessee, as well as south carolina, home to bmw's largest auto manufacturing plant operations. that is a key political battleground state. domestically, this comes at a time in which the president is facing criticism from ceos and auto sector leaders. the company's saying that the trade policy as a whole is costing them upwards of $1 billion. david: thank you. now over to london an

start looking at european auto stocks, specifically daimler and bmw. these two companies export most of the suvs sold, that they sell in china, they're built in alabama and south carolina bringing the tariff down would be huge for both those companies. also, look at shares of tesla. china is the largest electric vehicle market in the world. if you had a tariff of 40%, it would kill efforts to sell tesla in china this theoretically with lower tariff of maybe 15% should help sales for tesla. as you look at the u.s. auto stocks, talking gm, ford, fiat, keep in mind volume of sales in terms of what they build here and export to china is low they don't sell huge volume in terms of what they export there. nonetheless, the entire group, all of the stocks are moving higher welcome news that they might, we might see a lowering of tariffs when it comes to vehicles built here and shipped there guys, back to you. >> looking for them to put meat on the bones of that tweet phil, thank you. >>> when we come back, life and legacy of george herbert walker bush after th

bmw, and daimler and tesla export, a lot of vehicles from u.s.eneficial to get back to where rest of the world is with u.s. -- regard to china trade. >> many of other companies, what we consider u.s. companies. thigh mak -- they make their che cars in country. you have a best case scenario that you have been able to put together? if your clients ask you, how is it going to shake out? is it -- what do you tell people to hope for? >> i think that is a great question. it still unclear at-this-point. there is a lot of risk still there. it is good to have a negotiating strategy. as we've seen with mexico and canada in the new nafta, usmca, the tariffs go on easily, it takes a long time to come off, steel and aluminum tariffs on canada and mexico. i am still concerned we might not be able to have clear sailing we need yet, and certain too that long lead time industries like autos need. >> i can tell you, last week, they assume they are going to stay. i know a lot of people thought it was a negotiating tactic, to your point, they have not gone away, it

volkswagen, bmw, and daimler has the most to lose. trump goes ahead with levees on german cars shipped to the u.s. kevin: they said they had a constructive meeting. they tried to make the case to the president about the investments their companies are willing to make in the u.s. and how that would impact domestic jobs. case in point, volkswagen eyeing chattanooga, tennessee in particular about opening a plant. on the flip side of that, they do not want that 25% tariff. that is something they tried to toe their case, not just president trump, but other senior economic advisers they met at the white house, and they said they were not able to get a concrete deal. a lot of volatility and angst in washington, d.c., reverberating in the markets heading into january and february next year. vonnie: qualcomm has ruled out any chance it would return for a bid against semiconductors. this after china opened the door following g20 talks to looking at qualcomm and nxp again. why would they not revisit the $44 billion deal? they waited a long time

commission when it comes to avoiding potential tariffs on some of these company's products bmw and daimlergnificant losses earlier yesterday. looking across the board, it's a negative picture for some of these equities with ferrari and fiat chrysler down 1%. while we're talking about trade, let's talk about president trump. he's threatened to impose more tariffs on china if washington and beijing can't reach a real deal in a series of tweets trump seemed optimistic that his administration could reach an agreement, but he labeled himself a tariff man but warned he would restart the trade war if talks fall apart. >>> chinese authorities said they are confident about a deal with the u.s the commerce ministry said bilat wa -- bilateral talks were successful president xi jinping says he wants to deepen cooperation with the european union on a visit to portugal he said he hoped the hart geportuguese d benefit from the belt and road initiative that is a central pillar of china's foreign policy and growth strategy. >> as china prepares to once more ramp up imports of u.s. agricultural goods, inves

president trump, you're looking at white house, today met with german auto executives from volkswagen, daimlerite house you're looking at. this comes ahead of general motors ceo mary barra heading to capitol hill tomorrow. she will have an interesting time. the company announced as you may remember, massive layoffs and plant closures in the state. connell spoke to senator rob portman earlier on fbn. this is about the meeting with barra tomorrow. let's listen. >> bring in another product that can be made this specifically, general motors is making over 20 new electric vehicles over the next five years. connell: do you have any reason to believe she might be willing to bend on that? that you might be able to make progress on that front? >> we'll see, we'll see. as she told me she is es hesitant to raise expectations that can't be met. she said she will keep an open mind. that is it what i've been counting on. cheryl: morgan, gary, are back with us. i have to correct myself, markets are closed tomorrow in honor of george h.w. bush national day of morning. apology to the our viewers about that. ga

as relates to trade, autos, valeo and daimler are down, many times seen as proxy for the trade war. worth pointing out despite concerns of tariffs, impacting sales of eu automakers, volkswagon saying it is on track for a record year of delivery. that stock down 4.6% as relates to technology, shares in european tech are underperforming following the arrest of huawei cfo here's where we stand in europe. italy down 24% from a recent high germany down 20%, france and uk down 15 and 12% respectively some significant losses overseas when you look at where they're performing relative to their 52 week high. morgan >> absolutely, thank you >>> let's get to sue herera for a news update. hey, sue. >> good morning, morgan. good morning, everyone here is what's happening at this hour a suicide car bomber attacked a police headquarters in the iranian port city killing two police, wounding 42 more a little known sunni jihadist group claimed that attack. >>> the envoy for yemen says the two warring sides in the three year war signaled they're serious about de-escalating fighting >>> people are gath

daimler up 7%.olkswagen as well really focusing on the side that the macro fundamentals are not going here and we can brush aside the threat of deeper tariffs for the time being let's see what happens that is the picture for autos. let's talk about some of the chip makers. it was a good day for technology let's not forget at that technology, you have a huge supply chain impact from the u.s. to europe china imports about 50% of its raw materials in semiconductors. asml up really enjoying this rally as well no big surprise there. one other sector that we should talk about, too, is the luxury sector remember, this is something we've been talking about on the show for the past couple of months now we talk about it as a slowdown the chinese consumer is doing very well. you see that no surprise this morning that with china bouncing back, we're also seeing these luxury names bouncing back. lvmh up 5% kering up 5% burberry as well they have exposure to the chinese consumer are enjoying some of the rallies t

president trump might back down from threats to slap tariffs on european carmakers, bmw, volkswagen and daimlerll jumping with bmw with the biggest move, up 4 1/2%. embattled general electric, after shares tumbled more than 25% last month, ge is starting off december on a pretty positive note, after barrons named it one of the top stocks to play in december. enter the barrons bounce. ge shares, they were up nearly 8% in earlier trade. still up 3 and 3/4 on trading volume. $70.78 per share, the best day since november 13th. there were a lot of people waiting to see maybe i should scoop up ge at $8. if you got them lower than this, probably happy. to the shift from tariff war to trade truce, now, to be sure, the month-long trade battle between the u.s. and china hasn't necessarily come to a screeching halt, but president trump and china's xi jinping have officially reached a cease-fire that allows for a 90-day window in which to hopefully get a trade agreement finalized. to the white house and blake burman, when you and i were in argentina friday, awaiting this bilateral dinner saturday, we kind

michael: traditional companies moved- bmw and daimler into a single joint venture.hey do with this? do they ipo with this in the future will do they monetize and get external investment? how they can monetize the immobility businesses they have. electricn you look at cars, how far do you see it going in 2019? i would still love to have an internal combustion engine, but i'm old. even if some millennial kid did want an electric car in berlin, there's nowhere to plug it in. michael: that's true and there's still a limited amount of electric cars out there. that does change in 2019. we've got saudi and also mercedes. there,he cars of may be but there's nowhere for me to charge it. and i don't know if it's different and london. -- different in and london. anna: we have to charge our own points, and if you don't have parking best difficult. some supermarkets are catching on to the trend. there are deals to put free charging in some. but all of that is coming slowly. geoff, were you trying to play this trend toward electric vehicles or hybrids? where do you want to play t

it makes sense when you consider the fact that bmw and daimler produce a of high-margin vehicles in thede very difficult. are they going to be able to deal with that? there was a midnight tweet from president trump a couple of weeks ago that indicated the chinese would cancel up to 40% auto tariffs. tim: i hope that's the case. those tariffs went up in response to the president's tariffs. the number one auto expert from china to the united states -- export from china to the united states is bmw. european nameplates and brands could get caught up in this. matt: let me ask you your take on the eu-u.s. tariffs. riff if cost me a 10% ta i want to import an f-150 to germany. i hope the president moves beyond the transatlantic focus and moves to the big issue, which is how do we solve the u.s.-china trade relations. matt: thanks so much for stopping by. tim adams, president of the institute of international finance. nejra: so here is today's brexit schedule. traveling around europe to get concessions from eu leaders to make her deal more bearable for the house of commons. her first stop this

that's going to be beneficial to daimler. there is corporate restructuring that can be done. traditional european auto companies have functions within their businesses but they need to monetize these in the way gm has done it with their autonomous driving unit where they have outside investment from softbank at honda. corporate restructuring could be a positive in 2019. nejra: let me ask you about share buybacks. we have been seeing the u.s. equity market falling. share buybacks have been increasing. we have not seen quite undaunted increase in europe. -- quite an increase in europe. corporate'st executives see that share buybacks necessarily lift share prices generally, is there more incentive to actually invest in spending -- capex spending? getting to the cycle now where supply is very scarce. unless firms decide to raise prices, their only option to increase production is through extra r&d. situation where there are lots of risks -- did -- odd situation where there are lots of risks. nejra: kallum pickering stays with us. many thanks to the senior analyst at bloomberg int

let it share index in hong kong has a joint venture with daimler come of this company does, it is kongabout 3.2% in hong the hong kong casinos are also coming under pressure following a note from deutsche bank of us as winter is coming. growth gaining revenue will decline by about 5% in 2019 by their -- from their 4%.or growth of so there could be a weakness for the casinos in 2019. nejra: thank you, juliette saly instant or. we are asking the question on the mliv. can the yuan rally from here? how far? whi head to th sarah share. coming up next, we went to get your first in the morning on this question. how much further can the rally go after the past couple of days? >> it is versus it is to the headlines, slightly positive headlines overnight over the u.s. china trade war to my own views are limited to riyadh part of the formulation for the chinese administration to deal with the risk, will be the weakening of the john, so i expect that to return -- the weakeningl be of the yuan. nejra: someone french will be staying with us to riyadh first, we get the first word news with debra