one in particular we're looking at here that says daimler. that stock is down about 7%. it's gone exheavy dividends, and they're having their agm today and talking about the strategy of the future. part and pashsel of the longer term, the bigger narrative that's playing out, and that is all tariffs and the trade war and europe potentially being next in the line of fire despite the six-month reprieve oil and gas also continues to struggle remember, we have that much higher inventory stock number out of the suts two days ago and it continues to have an impact on the stock price. that sector is trading weak. retail also struggling down 1.5%. >> there's some of the soft data we've had across europe. germany's manufacturing sector romained in contraction in may weighed down by continuing trade tensions flash manufacturing pmi fell to 44.3 down from 44.4 in april. the country's services activity also fell. meanwhile, french business activity hit its strongest level in six months with flash composite pmi coming in at 51.3 for the month of may joining us to talk about this is an

you can see daimler really spiking up at the end of this chart.n indication of what impacts it will have on south korea, again a silver lining for the cost be. -- for the kospi. krx south korean auto index, highly likely to take a cue from their german rivals to head upwards. with the won maintaining quite weak, the semi conductor is quite sluggish, and as you mentioned the ongoing trade war lingering above our heads between the u.s. and china, this could give south korean domestic carmakers the hope they needed. rishaad: my problem with that chart is in you are comparing all of those carmakers in korea with just one on the blue line, which is daimler, a luxury car manufacturer. it is not apples and apples you are comparing here, surely. >> well if you do compare kia motors, it rose 3.3%. the point i'm trying to make with this chart is the general auto market is taking a cue -- rishaad: but you don't decide i am going to have a kia, no i think i will go -- that is my point. >> you might want to go for a kia. a k pop group is their ambassador. you

we have to leave it there. -- stock of the hour, dime our stock of the hour, daimler.re dragging the nasdaq lower, down 2.8%. abovex a little elevated 20. the 10 year yield at 2.40 right now. a lot of cash going into treasuries. ,e are also seeing interestingly and perhaps separately, a rally in bitcoin, above $7,000 at the moment. this is bloomberg. ♪ ♪ guy: we've got 30 minutes left in the european trading day. from london, i'm guy johnson. vonnie: from new york come on vonnie quinn. this is the european close on -- new york, i'm vonnie quinn. this is the european close on "bloomberg markets." stocks trading down to come about trading higher today. why are oil stocks trading higher? brent crude up by 1.2%. that is quite a impressive performance considering what is going on here. you would have thought there is a global demand story or a lack of global demand story that would take the shine off of crude, but what is happening in the gulf and elsewhere around the world certainly causing oil prices to go up. some of the big names like bp and shell and tote how -- and to

and medium businesses so it doesn't mean it means basically the big multinationals in iraq iran and daimler will be unlikely to resume trade with iran because they will not want to risk u.s. penalties nevertheless more greeny says in stocks which was supposed to be up and running in a few months may now be up and running in a few weeks and that perhaps is an indication that e.u. member states are serious about trying to look as if it least they are doing more. resembles your obvious falling reaction in.

this is where richemont, these bmw,utos sit, michelin, daimler.companies are sensitive to any trade war or negotiations with china. no surprise, oil is down more than 2%. miners, keep a watch on those. all these companies sensitive to tweets. the chinese are saying they may walk away from the negotiating table. matt: absolutely, and that is really dragging on stocks around the markets, really. not just of the stocks that necessarily get hit. for example, lvmh one of the biggest losers on the stoxx 600. but every stock is getting hit hard. ubs is the biggest loser, down 6.5%. i anheuser-busch down 3%. total, shell taking a big hit. some of the big gainers are telenor, the possibility of a megamerger there helping talent enor today.- tel all ofseven winners at all of the stocks that are trading today. not all 600 on the stoxx 600 because you have the u.k. markets closed. 382 losers and seven gainers so far. that should tell you what you need to know about the markets this morning. tensions rising between the u.s. and china. that's what it's all abou

meantime, there is also a change at daimler. has been a real institution there. alix: you said that was in the works. was this a different situation? david: i think it is a changing of the guard. at the same time, all of these auto companies are going through such transformation. in overalloftening auto demand, including in china. they've got a lot of pressure on them right now. alix: i would also argue the same for the governments. david: china and the u.s. are rolling back certain subsidies. you also have card sales slowing. -- car sales slowing. david: and that puts pressure on tesla, for example, because they are losing subsidies from the government. alix: and you need better and cheaper batteries that don't blow up. david: and where do those get made? china. alix: full circle. the biggest battery maker in the world is in china, and they also own the majority of nickel and cobalt in the world. coming up, is the trade war a binary risk? this is bloomberg. ♪ ♪ alix: target hits the bull's-eye. target kicks off the year with st

we see some big winners in the alsoof daimler, prudential up 1.8%.otherwise, not huge gains, but big movers. 2.25% right now. you have some ex dividend stocks on the downside. we had 22 yesterday that weighed on the indexes. stocks on the10 stoxx 600 going ex dividend. -- omv got town this going ex dividend. you don't see huge losers. we see omv another ex dividend stock. really the ex-dividends on the downside. anna: ex-dividends. i see in the retail space they had numbers earlier on, that down 4%. let's get back to the big picture, european markets opening to the upside, following strength in the asian session, as the trump administration grants relief to some companies using huawei. joining us now is mike bell, global market strategist at jpmorgan asset management. i want to start with tech stocks. the ratiohart showing of semi conductor stocks in the u.s. to the s&p. you see it falling. is this a sector you stay clear of right now because of the regulations and the threat to the supply chain being too great? mike: i don't think it's just the ques

it is no surprise that covers familiar big names like ford, daimler and gm. newer entrants, tesla.h chinese companies. in addition to china, the u.s. and germany are the top markets and represent the fund's largest country weighting. cars had some $35 million in assets, and since launching in january 2018, it has fallen behind the s&p 500. the fund has an express ratio of 70 basis points and gets a green light in the bloomberg intelligence traffic light system with a warning for its tiered weighting system. and this is such a great theme but not the only etf that covers this. eric: ishares has drive, which is why you know that is a big one because they are getting in before having big success. scarlet: that does it for bloomberg "etf iq." be sure to catch us at 1:00 p.m. new york time. this is bloomberg. ♪ alix: trade war reignites. and -- lng and soybeans are driving deeper into the battle between u.s. and china as china raises tariffs on key commodities. driving into the future, electric buses and cars will take over the world faster than you think with china leading the way. the

it is no surprise that covers familiar big names like ford, daimler and gm.ntrants, tesla an alphabet, along with chipmakers like nvidia. along with chinese companies. in addition to china, the u.s. and germany are the top markets and represent the fund's largest country weighting. kars had some $35 million in assets. since launching in january 2018, it has fallen behind the s&p 500. the fund has an express ratio of 70 basis points and gets a green light in the bloomberg intelligence traffic light system, with a warning for its tiered weighting system based on market cap size. and this is such a great theme but not the only etf that covers this. eric: ishares has drive, which is why you know that is a big one because they are getting in before having big success. scarlet: that does it for bloomberg "etf iq." catches each 1:00 p.m. new york wednesday time. this is bloomberg. ♪ alix: the trade war reignites. lng and soybeans are driving deeper into the battle between u.s. and china as china raises tariffs on key commodities. driving into the future, electric bu

look at structurally autos and it's a great symbol, cars, and it picks up the german manufacturers, daimler, bmw, porsche and they pick up toyota, nissan and many more, tesla. cars has underperformed the s&p five over the past six years it's down 9% and the s&p is up seven. structurally, global capacity is too high and autos are a bad place to be and you summoned up one of the best patterns among the best group. >> i think i stole this chart from fast money and the relative strength and the cheap options really make it a pretty good way to play a contrarian move on something that we don't really know what's going to happen, but we do have a catalyst in a little more than a month, and i like making good risk/reward bets like this and this looks decent. >> guys, thank you for everything options action check out optionsaction.cnbc.com before you do that because you might be driving, don't do that. here's what's coming up next. >> an ipo is an initial public offering it's the first time the stock is offered for sale to the general population. >> okay. got it, and if you've been waiting to get i

but if one were to look at autos, it picks up the big german manufacturer like daimler, vfw, ford, gm, picks up all the japanese like toyota, nissan, tesla. cars perform on the s&p. for the past five years it's down s&p is up 7% autos are a bad place to be. but you've singled out presumptively one of the best patterns among a bad group. >> let's be frank. i think i stole this chart from ""fast money"" when you were on last week. the options are good at playing a contrarian move when we don't know what's going to happen. i like making pretty good risk reward bets. >> thank you for everything "options action," check out the website. there's a news letter. do that. doan do that because you might be driving here's what's coming up next. >>> an ipo is awed for sale to the general population. >> okay. got it and if you've been waiting to get in on uber's ipo, mike khouw will tell you how to get in on the trade. >>> plus, calling on all "options action. reach into your pocket and get your phone and tweet us. if it's nice, we's respond when "options action" returns ♪♪ ♪♪ the wifi that set jus

if one were to look at structural autos, there is a big trend upwards, daimler, u.s., ford, g.m. picks up all the japanese like toyota, nissan, many more, tesla cars has under performed the s&p five of the past six years over the past six years it's down 9%. structurally a global capacity that's too high and autos are a bad place to be. you've singled out one of the best trends. >> let's be clear, i stole this from "fast money" and you liked it the cheap options make it a pretty good way to play a contrarian move on something that we don't really know what's going to happen but we do have a catalyst in a little more than a month. i like making good risk/reward bets. >> really good stuff for everything "options action" check out the website. "options action".cnbc.com. >>> an ipo is a specific offering >> got it. >> if you've been waiting to get in on uber's ipo, mike khouw will tell you how to cash in on the trade. >> plus, calling all "options action"s fans. reach into your pocket, grab your phone and tweet us your question @"options action. if it's nice, we'll answer it on air w

oil giant saying that they were going to pull out of the w daimler car manufacturers saying that as well as well as airbus the aerospace giant in response to that trying to get these businesses to stay at the beginning of this year we heard from the european union that france germany and the united kingdom had said that they were going to set up a payment system to get around the u.s. dollar and shield companies essentially from u.s. sanctions now this system called instead the instill the instrument for support of trade exchanges if you want to know what it stands for since it's been settled hasn't really done anything and the u.s. side of said one of the reasons it really hasn't done anything is it doesn't have the correct international standards in place to protect against money laundering or financing for terrorism and what the u.s. is saying is it particularly doesn't help protect against money going to the iranian revolutionary guard corps or the i r g c and they said that wasn't acceptable for the united states. i question how that even remotely possible with a country like iran w

and medium businesses so it doesn't mean it means basically the big multinationals in iraq iran and daimler will be unlikely to resume trade with iran because they will not want to risk u.s. penalties nevertheless more greeny says in stocks which was supposed to be up and running in a few months may now be up and running in a few weeks and that perhaps is an indication that e.u. member states are serious about trying to look as if at least they are doing more. u.s. markets close sharply dine on monday as the trade war between the world's 2 largest economies escalates beijing has retaliated against america's new tariffs by imposing new treaties on u.s. imports white house correspondent kimberly hole reports. from electronics and appliances clothing and shampoos u.s. consumers are bracing for increased spending on products they use daily as a result of the hike of u.s. duties on chinese goods put in place last week by u.s. president trump our economy has been very powerful that despite the escalating trade tensions transposed to china is hurting and needs to negotiate a new trade deal with th

daimler has promised it will have an entirely carbon neutral fleet in just two decades german automaker says electric vehicles willll make u up more than halaf all its car sales in ten years. zero emissions vans and trucks also in the works. the most ambitious timeline to cut carbon emissions made by any major automaker that would still slower than the pace favored by scientists to creep global warming in check mark. u. n. has called for global emissions to fall nearly 45% in just eleven years is. really still some somome work to do and if the government's made a big incentive by giving people alone a diesel car. a *-*- load of cash to trade in. is the suggestion we should all get people coming up also way for more s specifics on a dime r plan as well. looking for to that call thank you for which the coastline with his great see. james creating with mediawatch wrapped up ready to go good evening sir how much government in trying to drum up interest in the european electctions with. i hash tag. well they're trying to denton if if there's always been a bit of difficulty getting people to

and medium businesses so it doesn't mean it means basically the big multinationals in iraq iran and daimler will be unlikely to resume trade with iran because they will not want to risk u.s. penalties nevertheless more greeny says in stocks which was supposed to be up and running in a few months may now be up and running in a few weeks and that perhaps is an indication that e.u. member states are serious about trying to look as if it least they are doing more. of the reaction from toronto here's on just the resume. well iranians will also tell you that they've been saying all along that they do not want a confrontation they do want not want a conflict but they won't back down from a fight both sides at some point have said that open conflict is not something they want but both are on a very aggressive footing and iranians will point to the fact that mr proper may be saying what he's saying now but the fact is that very publicly they made a great demonstration of sending more american military hardware to iran store step iranian leaders both civilian and military have responded very very ang

shorter term, you point out some idiosyncratic challenges to each of these carmakers, from peugeot to daimlerw and so on. do these idiosyncratic challenges outweigh any trade war concerns for investors, or does one take precedence over the other? demian: i don't know if one takes precedence over the other. ultimately, for some investors, they've got to be invested in autos one way or another. it is a big sector. it's got a lot of turnover and a lot of market cap, so people have to have a view. i think some of the idiosyncratic challenges you are talking about involves which companies are doing better from quarter to quarter, which mostnies have guided us optimistically or negatively into the year, and in that context, can we buy these things. in a 12 month view, a big challenge is coming in the form of the 2020-21 emissions regulations, which will start biting into people's numbers next year. i think there is going to be a big issue for some of the volume carmakers. they will have the problem of big european exposure, big emissions headwinds biting into their profitability and whether numbers

certainly doesn't work for those big multinationals like the french or giant or the german car maker daimler it is not going to persuade them to come back to iran to do trade and risk u.s. penalties and the e.u. know that which is why they're in such a difficult position and it is very difficult at this stage to see exactly what they could come up with that will satisfy the iranians and manage to keep this deal alive all right natasha butler thank you. we're getting media reports that say the south korean military believes the north of the north has fired in an identified project we'll bring you more details when we get them. the u.s. president has accused china of breaking the deal ahead of trade talks donald trump promised to more than double tariffs on two hundred billion dollars worth of chinese goods china says it's ready to retaliate with similar measures u.s. president also threatened to impose a new round of duties as trade negotiators meet in washington on thursday the world's two biggest economies have been embroiled in a trade war since last year by the way you see the tariffs we'

fiat chrysler, daimler, and bmw all higher. let's take a look at beyond meet.have a spike -- beyond meat, 10% as a spike up about they will expand about 20,000 stores. they are now up about 250% on an ipo. really pretty amazing. guy: thank you very much. abigail doolittle on the markets. bank,barrow of standard head of g10 research and economics, is still with us. let's talk about what is happening with the japanese yen. there are people that see parity. beloware people that see parity. where are you are some -- where are you on some of these safe haven currencies? steven: i think they are going to stay strong because the world is becoming, in many senses, quite a dangerous place given how economics and politics are developing. i think the global economy looks more fragile. i think politics still looks quite fragile. we mentioned earlier with if you saytrade, but u.s. tariffs go into effect in six months, there's a good chance they will. i think those issues will be there, so i am in the camp that that is a one your target. guy: at what point do the authorities

medicine it is not enough to persuade multinationals like the french or giant total the german carmaker daimler to return and do business too with iran and risk u.s. penalties so the question is what can the european union do and if they can't really do anything if this deal collapses there is no doubt say many experts looking at this it will be a huge blow to the credibility of the european union's powers of diplomacy well the view from paris and the taj thank you let's cross over to. our correspondent in tehran really a lot for rod to consider firstly they've had to deal with the e.u. statement making the e.u.'s position very clear and also more sanctions being levied. on one of the really their largest exports as well. absolutely sanctions on iran's meddle industries after oil it is the largest revenue generator for donald trump u.s. president donald trump and said so himself saying in his statement that it accounted for ten percent of iran's earnings from exports and it is a large employer here in iran and iranian leaders have now reacted for the first time officially to these sanctions to

inre is definitely a trend daimler the aftermath of the brexit vote to think that in the immediate aftermatht -- there is a trend in the aftermath of the brexit vote to think across sectors. thinkingrs are still that u.k., but also thinking carefully about the sectors and making sure that whatever sector they commit to come but there is a very clear brexit contingency plan. guy: what about where they are basing themselves, where are they putting their teams? that morel the time and more financials are moving to use out parts of europe. where are the emerging private equity hotspots? michael: it is certainly the case that a good number of managers have established an e.u. 27 legal vehicle so that post-brexit -- vonnie: in dublin, amsterdam. michael: many of them have a back-office operation in luxembourg, so adding a new legal vehicle, new authorization from the luxembourg authorities was a natural development from them. our members in other parts of europe also see opportunity in the next few years. the market in france has grown. french managers i think our raising more capital. those who a

also worth remembering daimler has gone dividend today. bp is trading down.those majors worth paying attention to. kering, big exposure into the chinese market. lvmhnot want to pick because i would have to talk about rihanna's latest outfits. u.s., weere in the have the major asset cap's all showing signs of what is going on in equities. the 10 year yield down to 2.33%. it got a little lower. a lot of money flowing into treasuries as it comes out of equities. crude oil is seeing a drop of more than 5%. 58.32. that is change from the last couple of days. the dollar index has just gone below 98. quite strong today. i want to point out stocks are moving lower. let's move to our next board. you see some that are moving. contraband started trading. we will be having interview with is the yield. down 7%. that is an ipo that bears watching. best buy was higher earlier. a great quarter by trading down 4.4%. slight on theng trade headlines. brands and chipotle reacting to the idea from the street that african swine flu could be more of a problem for these chain restau

names like daimler getting hit.er factor in the market is -- up 13% over the last does go days. a massive gap on friday and then folding over a little bit today. that is dragging the dax down. there is definitely an auto part of the story. wait until may 18. huge day for europe. the cac 40 also down. stocks that have a big exposure in china are feeling the downside and that is a heavyweight stock. some of the utilities in europe are doing relatively well. safe haven bid, let's get a look at the grr function and give you a look at what is happening from a sector point of view. most sectors in negative territory. oil and gas flat. trading as a counterweight. food and beverage is a huge portion of the european market. , stocks -- nestle, stocks like that. they are not down much. utilities another safe haven, up .3%. that is helping out the u.k. market. there is political element around utilities from a germy corbyn-- from a jeremy administration side of things. compared to the united states, a bigger safe haven compone

continental dragging down this basket this after a slew of very weak earnings out of bmw, volkswagen, and daimler. the list continues of course, the threat of tariffs is one that's hanging over it. banks also down 1.75% as well. we said worry focused on the italian banks there, and then the relative outperformance is still negative the defensive sectors and real estate and utilities both respectfully down about a quarter of a percentage point and one-third of a percentage point. let's go back and broaden it out and talk a little bit about the respective it reactions. today we've got the ftse 100 down .7% these brexit discussions are still continuing cross-party talks even though it looks as though the likelihood of something being agreed is getting lower. the prime minister has promised yet another vote on the withdrawal deal before the european election, and so we'll have to see how that pans out. autos dragging down. also cac down 5% this is the second day in a row it underprfs then the italian index we've been talking about the banks there also down 1.2% a lot of red in europe today coming up

and medium businesses so it doesn't mean it means basically the big multinationals in iraq iran and daimler will be unlikely to resume trade with iran because they will not want to risk u.s. penalties nevertheless small greeny says in stocks which was supposed to be up and running in a few months may now be up and running in a few weeks and that perhaps is an indication that e.u. member states are serious about trying to look as if it least they are doing more. rob is following reaction. well iranians will also tell you that they've been saying all along that they do not want a confrontation they do want not want a conflict but they won't back down from a fight both sides at some point have said that open conflict is not something they want but both are on a very aggressive footing and iranians will point to the fact that mr pompei are maybe saying what he's saying now but the fact is that very publicly they made a great demonstration of sending more american military hardware to iran store step iranian leaders both civilian and military have responded very very angrily to that in the last

the performance fared better than daimler, its key competitor in europe.voiced optimism about a china recovery in the second half of the year switching to big oil, shell's first quarter profits fell 7%. due partly to lower oil prices and the chemical and refining businesses that still beat forecasts as the company benefitted from higher sales of liquified natural gas and stronger training. back to you. >> seema, thank you. when we return, a beat on the top and bottom lines for fitbit. but the stock is down. ceo james park joins us exclusively on the other side of the break. we are inching closer to beyond meat's debut you can see the indicative price of $44 the ceo joins us after the open. >> announcer: the cnbc trend tracker live board is brought to you by the cme group >>> fitbit growing more active users and getting a boost from strong smartwatch sales. those sales up more than 100% year over year joining us in a cnbc exclusive is james park. good morning >> good morning. >> so some questions perhaps about the selling prices for fitbit hardware down mor

daimler was in control. who is the buyer here?was a marriage made in heaven, and we all know how that went. a lot of caution around the world of the word "merger." the fee outside is to some degree in control. however, you have very powerful stakeholders on the renault site. they go to great links to describe this as a 50/50 merger of equals. they say the renault side said today they see this as something that is friendly, not a hostile takeover or anything. but we will see how it plays out in the next couple of weeks and months. some people inside the company said this could take a year to get over the line. matt: kris bryant, bloomberg opinion columnist whom i love, has said he is not so sure it is a good idea. in fact, historically, big mergers don't often turn out to be good ideas. , the late chrysler ceo, was behind industry consolidation because he argued towould cost so much money electrify the fleet, develop autonomous cars, car sharing. what do you think? >> you are right. hashistory of the car world examples of mergers n

daimler one of the biggest losers, bringing in $16 billion euros last year from china the most of anyean automaker tech and chip names in particular weighing heavily. asa international run of the big laggards revenues come from china also, several consumer names, swatch, montclair and adidas, the watch maker swatch generates more than 30% of total revenue from the chinese market. uncertainty around a trade deal comes as europe is still reeling from slowing growth though important to know last week we did see an unexpected rebound in first quarter gdp coupled with a faster than expected pickup in inflation. and today the latest pmi came in better than expected still the weakest in three months. germal industrial products many times seen as a proxy of europe's growth. that companies out wednesday night and we will see what it tells us about europe's potential rebound. >> a close one to match. seema mody thank you let's get over to sue herera for an update. >> good morning everybody. here what is happening secretary of state mike pompeo speaking in finland today warning of the dangers of

some carmakers, volkswagen, , andchrysler, and renault daimler too putting gains up today.eca up there as well. do not forget how big these companies are and how heavily they are weighted on the stoxx 600. intesa sao paulo is down. go santander is -- bank go co santander is also down. issues are trading with the right to last year's pay off. anna: let us talk about where we are on these markets. european equity markets opening higher as trade frictions are putting the global stocks on their monthly guides. senior analyst a . we could see markets heading for month since 2019. you see these as buying opportunities? : we do view them as a buying opportunity. at the beginning of the month, wasld trump said trade war coming. very dramatic headlines. reason for us to stay optimistic is we strongly believe that pessimism that we saw at the end of last year is still in the market. investors have not fully come back to the market. and economic data is soft. but not disastrous. worse priced for a lot outcomes. as a general sentiment from , they see a q1 rally. news roguetrade war out

on the downside, daimler off 1.5% right now. the biggest weight on the stoxx 600.lso got phillips there. phillips down because of ex dividend. an even splith leading to european markets that are looking slightly down this morning, at least in terms of the stoxx 600, a slight move to the downside. a mixed picture across the individual indexes. it's not the kind of slide you saw in asian equities overnight, and not the drops indicated looking at u.s. futures. investors are awaiting details on the countermeasures that china warned it would impose following last weekend's escalation in the trade wars between the biggest economies. joining us is the senior multi-asset strategist at state street. what do you think of the trade situation? the rally, was it all based on the trade deal going through? if we don't get one, do we have a lot to lose? guest: morning, matt. last time i was here, i was called the most optimistic strategist. i'll probably stay with that message. was view is that in q1, it rebuilding on pessimism in q4. analysts are dismissive, expecting earnings to

mexico is a bigger hub for daimler and heavy trucks and buses and bmw is set to open a plant in centralke a look at the spanish banks with exposure to mexico. they're all down about .6% to 4% on the day let's also talk beer they generate 10% of the total earnings from domestic sales of beer in mexico the analysts say sales could be pressured if the mexican economy weakens further. what to watch next week? we have our eye on u.s.-china trade talks. u.s.-europe trade talks will be in focus too the kmigtser warning ministers earlier this week that they should brace for u.s. tariffs and also comes ahead of president trump's state visit to britain and we have the ecb meeting on thursday. back to you. >> thank you, sima now let's get a news update. >> good morning, jon good morning, everybody. here's what's happening at this hour secretary of state mike pompeo holding brief talks with german chancellor angela merkel in berlin she stressed before the meeting that two would discuss how to prevent iran from gaining nuclear weapons. it is pompeo's first visit to germany. in a second suicide attac

the head of the trucking division, he is someone day -- someone day -- they wooed from daimler to joinen on the ipo, to give independence to the unit. trucks is a very different unit from cars in terms of the cycle. that includes not just vw trucks, but others. there was a huge fight that went on for many years over the purchase of those other two brands. vw has them in the house, and they want to extract more value. anna: good morning to you. tracking this morning, also keeping an eye on nissan. a few weeks ago, we saw european carmakers way down -- weighed down, and the nikkei says nissan will report for your operating profits falling a fourth-year. what do we expect from the japanese automaker? are: yeah, of course we all anxiously awaiting those results, coming at the top of the hour. but clearly nissan is struggling, fair to say that. it is something we have been covering, discussions over whether they should deepen the alliance, create a holding company with renault. nissan says they have their own internal problems to deal with, things they have to do like fixing brands like inf

decision to potentially delay the imposition of tariffs on the auto sector, seeing names like porsche, daimlerswagon, bmw up significantly on the day also worth knowing the data out of europe today has been encouraging. the growth data specifically, numbers out of germany narrowly avoiding a recession for now, so that has been encouraging for markets as well. turn to earnings, sal vador, the shoemaker posting a strong set of numbers including an 18% jump in sales in mainland china city analysts say results represent an inflection point in the turnaround plan. that stock up over 10% the results lifting shares of other luxury stocks. analysts caution that a further drop in the chinese wan could complicate performance resulting in the consumer there pulling back we have to point out it's basically flat against the dollar but hovering a 2019 low back to you. >> all right thank you. >> to rahel for a news update. >> here's what's happening at this hour. former secretary of state john kerry joining a meeting of world leaders and tech company representatives in paris for talks dealing with on-line ex

daimler benz up 2.5%. >>> meanwhile, auto makers here in the united states, ford, gm, they like this, too. fiat chrysler trading higher on the news. i was checking toyota earlier, that was moving higher. it's not a bad day at all for the auto stocks. this as treasury secretary mnuchin told law makers that trade talks with china will continue soon, and this time back in beijing. edward lawrence, i'm amazed that you don't have whiplash. wearing one of those braces around your neck. live on capitol hill, the action is unfolding every minute. reporter: you know what, all of the action now on trade has moved to capitol hill. treasury secretary mnuchin here on capitol hill testifying this morning. he did say, as you said, the trade negotiations will continue, it will be in china at some point. he says there are no plans right now that have been set. he also sounded a little muted when i asked if he was confident we would have a deal with china. feel confident for a china agreement? still confident? >> hopeful. i wouldn't say i'm confident. reporter: you heard that, hopeful, he would not say

and medium businesses so it doesn't mean it means basically the big multinationals in iraq iran and daimler will be unlikely to resume trade with iran because they will not want to risk u.s. penalties nevertheless more greeny says in stocks which was supposed to be up and running in a few months may now be up and running in a few weeks and that perhaps is an indication that e.u. member states are serious about trying to look as if it least they are doing more. the live reporting there from brussels well as you heard just before the u.s. government has confirmed that 4 commercial cargo ships have been subject to acts of sabotage it did not describe the nature of the attack which happened near the port just off the m erotic coast the port is $140.00 kilometers south of the strait of hormuz about a 3rd of all oil exported by sea passes through that strait now here's how the events played out on sunday morning iranian and lebanese media outlets aired reports of explosions at the city's port but any razzi authorities said that those reports were inaccurate hours later the u.a.e. said 4 commercia

daimler will have the same issue, volkswagen's fair pronounced.come back, they had a wobbly quarter. matt: big numbers. benedikt: so the news of the change, we expect that come back. audi was doing well. anna, i was to say, skeptical about the new 9/11 model. must all of the engines have turbochargers, which bums me out. but i absolutely love the design , especially with the brake lights in the back. anna? anna: i am sure they sleep easy knowing they have pleased to, matt miller -- pleased you, matt miller. they were talking about the u.s.-china issues, downplaying their exposure but saying this would benefit the sector. i suppose everybody wishes it would just go away. benedikt: yeah, that issue is the real question going forward. we don't know which way it will go. we have for talks in the u.s. saying it is going well, but we don't quite know whether there will be at agreement. that is really the big issue, particularly in europe. u.s.wagen exports to the every quarter. 40% of cars are sold their. they are caught in the middle they can only make

daimler is the biggest loser. commerzbank is also an ex dividend. all of those move lower.oking at some of the other fallers in terms of topical news. bnm, the european value retailer, we talked about that earlier with newriver, and this company is down by 1.2%. let me talk to you about what is going on on the european equity markets. european equity markets opening lower as trade weighs on sentiment. now to digest the latest market moves, ben jones from state street. very good to see you. thank you for coming in. i want to start with our question of the day. why are the bond markets pricing in cuts the fed does not see as necessary? the minutes seemed to confirm they are in no hurry to move rates at all, yet the bond market continues to reflect on the need to cut rates. what is going on? ben: i think definitely the fed is very much in the wait and see moment. we saw that from the minutes last night. i think we've got to remember that the market has been betting the fed would be more dovish for much of the last few years and it has generally been correct in that position. i

and medium businesses so it doesn't mean it means basically the big multinationals in iraq iran and daimler will be unlikely to resume trade with iran because they will not want to risk u.s. penalties nevertheless more greeny says in stocks which was supposed to be up and running in a few months may now be up and running in a few weeks and that perhaps is an indication that e.u. member states are serious about trying to look as if it least they are doing more. the is falling reaction now in tehran. the iranians will also tell you that they've been saying all along that they do not want a confrontation they do want not want a conflict but they won't back down from a fight both sides at some point have said that an open conflict is not something they want but both are on a very aggressive footing and iranians will point to the fact that mr proper may be saying what he's saying now but the fact is that very publicly they made a great demonstration of sending more american military hardware to iran's doorstep iranian leaders both civilian and military have responded very very angrily to that in

like food and medicine so it's been unable to persuade big multinationals like german coal make a daimler for example to resume trade with iran and risk u.s. penalties that really is the key problem for european powers and what analysts say is that they are unlikely to be able to come up with something which can really shield the iranian quanah me from these u.s. sanctions and if the deal collapses many say that this is just going to be an enormous blow to the credibility of their powers of diplomacy thank you for that matter for a same paris let's now bring in kimberly hockett our white house correspondent kimberly the u.s. ramping up the pressure on iran with these new sanctions how are these moves by the administration which has put as we heard there some of the u.s. allies the europeans in a very difficult position how these moves being viewed in washington. well there is increasing worry in washington and also the recognition that very valuable relationships are being put to the test particularly when it comes to european leaders and also the u.k. given the special relationship betwe

if you look back at daimler owning chrysler, that was a disaster.opal from general motors in europe and has turned around that brand. with th the merger of fiat and renault, that potentially puts a lot of other automakers at a disadvantage. i'll look at ford. one of the things driving the merger is because there's so much focus and there's so much money required for electric vehicles, self-driving cars, in-car connectivity, things like that, that you're seeing a lot of potential partnerships like the new mobility, trying to combat, say, an uber. you've seen a lot of partnerships come together. volkswagen and ford are talking about sharing technology. volkswagen, daimler and ford have teamed up together to build a super charger network in europe that would be one of the reasons behind this combination of fiat and renault. maria: renault and fiat would -- are two weaker players relative but if they got together, where does that leave the relationship with nissan? because right now nissan and renault share certain business lines. they have a partnershi

alix: wasn't one guy naked at daimler if you use ago? david: well, you can't get in.thanks so much for being with us. coming up, qualcomm following the most in more than two years on the antitrust ruling against the company. more on that next. this is bloomberg. ♪ david: qualcomm struggling after banning sale to chinese company huawei, and then news on an antitrust ruling. with us is the former head of on competition. what did the judge find qualcomm did wrong? is it different from what other people do? guest: yes, or so the judge found. she found that qualcomm has monopoly power with chips on 3g and 4g mobile telephone services . she found out that they -- she found out, and they wouldined, that refuse to license their competitors. secondly, they entered into exclusive agreements with handset makers, and that foreclosed the market from competitors. thirdly, through a convoluted process, qualcomm forced handset manufacturers license qualcomm intellectual property even if there chips weren't going to be used. david: even if you buy someone else's chip, you still have t

their competitors, daimler and bmw suffered on suv exports, whereas toyota brings their suvs from japanre important opportunity in china will remain local production. that is why we are seeing china ramp things up with its two joint venture partners. they have been holding off relatively compared with honda, which has number one share among japanese brands. we are seeing toyota put on the accelerator there. i think you will see china becoming a much bigger part of the toyota vision of the future. shery: talking about partnering up, they are working with panasonic on that joint venture when it comes to the making of ev batteries. how significant will this business be? janet: i think in the long-term it could be extremely significant. in near-term, toyota says it will remain focused on the hybrid vehicles. clearly in the longer term future depends on pure battery ev's, and solid-state battery technology particular. toyota, 49%s 51% panasonic highlights that toyota is bringing significant technology, but relies on panasonic's ability to produce these batteries in a cost-efficient manner. t

daimler are the leading exporters of u.s. made cars to china. they fell in france.g slumped to its lowest in four months as the editor of an influential chinese tabloid tweeted that the plane hurt insales could be the escalating trade war. the global times editor and chief said that was an opinion and not an official comment. owing said it was confident the u.s. and china would reach an agreement that than you cited manufacturers -- benefited manufacturers in both countries. there is more to come on "daybreak asia." stay with us as we unpacked the fallout from the latest trade tensions. this is bloomberg. ♪ bloomberg. ♪ jessica: this is "daybreak asia ." summers refers would headlines. president trump plans to meet xi jinping in next month's g20. the meeting could prove pivotal in the deepening divide over trade. stocks tumbled around the world as the u.s. rate tariffs on chinese imports and beijing hit back with its own measures. make a deal and warned beijing not to go too far in retaliation. china says a solution must be found. tariffs will not solve the problem.

yesterday, daimler bmw a big sigh of relief. that stopped seeing volatility today.d, all the safe haven bids reversing. euro-dollar flat. the 210 spread, 20 basis points. on one to watch, dollar you -- dollar-yuan. just how far china will let the currency devalue. crude continues to grind its way higher. saudi arabia saying there were outages because of more tension and turmoil and attacks in the middle east. david: pretty sinister over there. story, the united states and china are ramping up tariffs on one other even as president trump says he will meet with president xi at the g20 summit in japan. we have heard from experts about the advantage china may have because of its political structure. >> economically, we have more power than the chinese. do you're right, the chinese not have to care of their people like it or do not like it or feel like government policy is bad policy because the people do not have any voice. >> in some ways the chinese system is built on this. the chinese economy is built on anti-foreign sentiment, anti-imperial sentiment. david: we welc

and the man that ran daimler for years is stepping down today.re will be cost cuts to restore profit margins. they take over at a time of unprecedented upheaval in the auto industry. 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 viviana hurtado. this is bloomberg. tom: let's do a data check right now. really quick and short. it is a very sterling day. the curve flattening at any number of levels over the last couple of days. if i have time, i will look at the two-year and 30 year spread. something a little different. hitting the inversion. on to the next screen. the continued bull market, wow. under 15. there is the sterling story. francine, i did both pairs. cable, good morning america, and euro-sterling. at 98.lar index elevated francine: if you look at europe, it is really range bound. the pound resuming the slide as optimism that we saw yesterday has evaporated on theresa may's brexit bill. looking at european stocks, they are under pressure despi

that's why volkswagen, bmw, daimler, all those stocks moving higher >> fiphil, thank you. >>> we're also keeping a close eye on the retailers courtney reagan with the details for us >> so april retail sales fell 0.2% from march. that's a disappointment. analysts were looking for a slight gain. compared to last april, retail sales gained 3.1%. they were revised from february. building materials, garden stores, that was the weakest sales down 1.9%. in april from march. department stores, the strongest category up 0.7% in april from march. and, in fact, macy's kicking off retail earnings addressing the looming trade tariffs as a headwind the ceo jeff gannett telling me while tariffs have had little impact to this point on macy's, a further increase will have a bigger impact. >>> spending, tariff threats, what do you do with the retail stocks right now >> we are cautious we think earnings per share can be cut by 10% to 30% so we're selective about what we like we like walmart, deep value concepts and we're worried about tariffs and pricing and what that means for the customer. we're still ve