a chinese dragon on the hood of a daimler.nt to see the mercedes-benz star. this isn't sitting well with everyone but it is also because of the very tense trade environment. already taking a hit as they make suvs in the u.s. and take it to china. caroline: what is in it for beijing automotive? shery: chinese auto market, technical expertise, credibility from the german name. caroline: fascinating. always great to get your expertise. for more, domestic daybreak australia and daybreak: asia. tomorrow, second-quarter earnings after the bell. taylor: former special counsel robert mueller will testify before the house judiciary and intelligence committees about his probe on interference in the 2016 election. "bloomberg technology" is up next in the u.s.. this is bloomberg. ♪ ♪ emily: i'm emily chang in san francisco and this is "bloomberg technology." big tex under antitrust scrutiny -- big tech under antitrust scrutiny. opening a broad antitrust review. facebookazon, google, all in the crosshairs. softbank looking to launch a seco

we had a profit warning out from daimler. they cite dieselgate.ssues having to do with the airbags.ess and provisions being taken. interesting to see to what extent that is all translatable and can be right across other stocks. we do expect it to have some read across effect. euro and thet the pound grows stronger as a result of the dollar weakness. let us talk about the markets from a sector perspective. pretty evenly split. red coming through including discretionary and staples. health care is firmly in the red. financials firmly in the green. this morning.xed let us see if we get anymore clues as to what is happening when we go to the individual movers. 600 -- showstoxx us where we are on the individual movers. for thepside, sab start. hannah was talking about how it had stayed away from the nordic the scandals and numbers were better than expected. by 2%. up deutsche bank catching a bit this morning. that stock is up by one .8%. the upside. on the stoxx 600. to the downside, a profit warning out of an insurance business out of the u.k. and tha

daimler stock will be looking at the numbers and getting more pessimistic.ome of the new suv models will help matters in the third quarter of this year well, deutsche bank received it's sweeping restructuring program. the bank now has a more balanced risk reward profile after it slashed jobs at its investment bank deutsche may win more regulatory support and that will possibly result in lower environments the lender announced the overhaul plans happy to bring in the senior director of financial institutions that joins us now thank you for being with us, patrick. as a rating agency you look at the present and you tried to help investors figure out the future what do you know about deutsche bank's present circumstances and what does that say about the bank's future direction. >> well, you know, deutsche bank has been struggling for quite a long time in terms of profitability. they are struggled to improve the profitability but clearly they have been struggling. they have retained strong franchises in a variety of core products they want now to focus on and, yo

in daimler you highlighted the results. in the results, one line that was interesting, they say the ongoing high up-front expenditures for new products and technologies will be a burden this points to the costs of adapting to the new world. in addition to investors rewa rewarding companies that are showing margin expansion like psa, they're also looking at companies who are showing that they can adapt and they can actually become a contender in the new world of electric vehicles however that may look. >> julianna, thank you for breaking down the psa numbers this morning and your insight on some of the developments there >>> covestro backed its outlook despite falling profits in the second quarter net profits slumped 68% but still beat analysts estimates. they confirmed their full-year guidance >>> and akzonobel reported a 36% rise in second quarter core profit beating expectations thanks to higher prices and cost cutting. the dutch patieints maker said y have delivered 43 million in reductions so far. the ceo stressed the s

daimler is a great example. there is already a 9% stake in daimler.have a joint venture in the ev space. beijing auto as a production partner for daimler in china making the city spends -- or sadie's bands its partner -- mercedes benz its partner. all right, thank you so much. all things cars and autos. ahead of the mitsubishi motors reports later. yvonne: let's take a look at indian markets ahead of the open in mumbai. it has been pretty choppy the last couple days or so. david: to say the least. yvonne: weaker earnings is one of things we have been watching. how are things looking today? >> well, at least from the point -- the of a flat start last few days, it is getting even more crucial to see if we can hold on because we have been testing the level quite often. , most of theown technical analyst start talking about going lower. any move on the upside from these levels are just bursts of value to grow shorter on equities. banks are looking extremely fragile. there is no sense of support coming in from any of the banks. even the largest have starte

now daimler -- i should say beijing auto taking a 5% stake in daimler.s chinese company stake to nearly 15% in daimler. bought volvo, now taking the stake and daimler. daimler.n -- in this is an interesting time for chinese automakers. i said, you have a lot of pressures against you. less protection from the chinese government. you have that confluence of technology. he said, we need to invest more and getologies stronger. look what they have just done. taken a big stake in daimler. >> thank you very much. stephen engle. korea,kets and south japan, and us toya it underway at the top of the hour. >> asian stocks look set for a mixed start. as the dollar holds onto overnight gains. earnings very much in focus today. takes reporting season off. second quarter operating profit beat the highest estimate. also, closing at a six month high tuesday. the nikkei news reporting plans to cut 3000 jobs worldwide. pull out of manufacturing and r&d in europe. view after a $780 million acquisition of atlantic gold. evolution mining is in view after posting and 8% drop i

daimler, etc.little bit of an upshift that could trigger an interesting rotation into value industrial. we get a big leadership shift, these markets could continue to rally. nejra: the outlook for semiconductors and chip stocks seem to look better for the second half. if we look at value more broadly, do you see banks in europe or the u.s. as a good value proposition? trading was a little better, but it is a scream of agony with negative interest rates. we are just learning of the pain inflicted on the banks. i think people will look more closely at the message for negative rates to take this blood leaking out of the european banking system and try to mitigate that. any news that would change that would trigger a huge reversal. the other opportunity is in the u.k. if boris's momentum does continue. have interesting thoughts in terms of high global .quities exposure talk about how the developments ,round brexit might change that and how you fit the u.k. into the global portfolio? guy: boris has poli

of course, it isn't only daimler having trouble at the moment. european automakers rally today, but if you look at that performance, it is not looking that great. vonnie: emma chandra, thank you. let's look at markets now. in the u.s., we are seeing the s&p 500 try to stay above the 3000 mark. we will look a little closer this friday. the dow up. good performance from the dow and the nasdaq, up just 1/10 of 1%. this is bloomberg. ♪ i don't know why i didn't get screened a long time ago. i kept putting it off... what was i thinking? ok, mr. jones... we're all done. i told you it was easy. with life line screening, getting screened for unknown health conditions is so quick, painless and affordable, you'll wonder why you hadn't done it before. so if you're over age 50, call now and schedule an appointment near you. for just $149- a savings of over 50%- you'll receive a package of five screenings that go beyond your doctor's annual check-up. ultrasound technology looks inside your arteries for plaque that builds up as you age and increases your risk

we already heard from daimler and gille. technology up, just over 1% with the chipmakers boosting that overall space. we'll get into detail on what's driving that sector in a bit banks rounding out the top sectors this morning, up about 0.7% let's get into one of the top stories in the bank space, that's ubs they posted a surprise beat in second quarter earnings with net profit rising marginally to 1$14 billion. that's as gains in the swiss bank's corporate and advisory units offset losses in banking joumanna joins us from zurich. you have been poring over the numbers and you had a chance to speak to the ceo of ubs. were the headlines as strong as suggested or were there patches of weakness in there >> you and i, julianna, like to knit pick the numbers the top line and bottom line much higher than expectations there. and -- >> well, hopefully we'll get back out to goo mjoumanna in a and hear what the ceo of ubs had to say >> i would say the sentiment is very volatile. it's difficult to call a trend you see the dynamics on a

and this week, goldman sachs put a sell recommendation on a daimler.watch up next week are dividends. these levels are very relevant to the dax. you can see the dax performance versus the dax performance minus the dividends. and if you look at it minus the payouts, german shares have done nothing since 2000. matt: thank you very much for the setup. annmarie hordern talk about the kickoff of german earnings season. about its to talk more is the portfolio manager at dws. i am most interested in automakers in germany. today, got news on bmw profit cuts four and daimler kicks off this world of hurt with its omissions cheating scandal -- emissions cheating scandal. if we look at the forward price-to-book ratios and the autos and parts index, we can see that it is looking at the lowest i can see since 2009. obviously, these shares have gotten killed. can these automakers make a comeback? >> good morning. still, it is a difficult environment for the automakers. you are right, valuations are quite low. side big difference between the stocks and the cyclical on

daimler blames the cost of a recall to deal with faulty airbags.expenses stemming from the diesel emissions scandal. asian unit is struggling to price its $9.8 billion hong kong ipo. budweiser brewing company aipac is weighing a number of options. one may be to relaunch the offering at a later date with different terms. the arrangers can't find enough demand to comfortably price the deal within the marketed range. that is your bloomberg business flash. david: thanks so much. we start bank earnings reports next week, with citi being the first report monday. in the latest note from morgan stanley, we hear this. " global gdp is slowing, inflation expectations are dimming, and the fed is positioned to cut rates, making it harder for banks to deliver surprises and operating leverage." with us is betsy graseck, morgan stanley head of banks and diversified finance research. with us still is frances donald of manulife asset management. i'm sure what you heard from chair powell reinforces your concern about the banks. betsy: i think what he said is, get rea

daimler issuing its fourth profit warning in just over a year.st year's level. cost fromaiming the an airbag recall. to priceis struggling its hong kong ipo. budweiser brewing company aipac is weighing options and one may be to relaunch the options at another date. bain capital agreed to by 60% of cantor, valued at $4 billion. wpps taught -- part of ceo's attempt to decrease debt. francine: tropical storm barry barreling down toward louisiana and could hit the coastline by the weekend. are at a seven-week high. joining us is alice longley. -- alex longley. if you a great function hurr, you can track the hurricanes hitting the coastline . 70% of lng capacity is at risk. alex: lng is one side of it. we have seen 50% of the gulf of mexico production shut. 50% of oil production is shut in as well and a soft commodities element. overs as it winds its way the south coast of the u.s. will be hit, and this will be an impact. offshore impact is now in the next is the cost of refining over the gulf of mexico. things --when it hits alex: tomorrow we will se

you have already picked up on a profit warning from daimler, it is a familiar track? been struggling, some of that is due to higher costs, you we re of that is due to higher costs, you were talking about ford teaming up, it is because the cost so much to develop new technology. for daimler —based have increasing costs from some of the new emission standards and diesel settlements, they have had issues with sales being lower as well, so this is the fourth time in a year they have issued a profit warning, quite extraordinary. you mentioned ford and vw, it seems like a world in which, little by little, they are all beginning to find their partners, because there is no way to do eight. we will have a lot of consolidation in the auto industry, it cost so much to develop a new vehicle and all the technology you have to put in it. if you don't have partners and that technology you will not have the scale to make it. the issue, if someone gets to d riverless the issue, if someone gets to driverless first, they could get a huge chunk of the market, which is why everyone is rac

would rise to the 4 years daimler. heard today was a person who was not conforming to instructions given on the subject of monetary policy this mother of all evil cold interest writes. for money we believed the dumb person had to be changed yet thought beautiful most detected. the banks governor who had repeatedly resisted such instructions was sacked earlier this month his replacements is considered a loyal heir to one supporter it's a move that has added to growing uncertainty on the financial markets. and now to some of the other business stories making the news. facebook shares have been rising in extended trading after it announced forecasts beating 2nd quarter revenues of almost $17000000000.00 this is just hours after u.s. authorities hit the social network with a $5000000000.00 fine over its failure to protect you said data. and tesla has again pushed back to the end of this year its target for reaching profitability elon musk's company reported a 2nd quarter loss of $408000000.00 that was worse than expected a

this is bloomberg. ♪ david: this is what i'm watching today, it is daimler, and china's stake in daimlerurns out they had a relationship with the very large beijing automotive group, and they have now taken a 2.5 percent interest and had a right to go to 5% interest. what i have not focused on is already, we've had a name you may or matt now -- you may or may not know that owns geely, a huge chinese automaker. two of the top shareholders are chinese. alix: which isn't necessarily surprising to me because we are seeing a lot of alliances in the car industry. the pair up in that kind of alliance is not surprising. david: they only money to go to electric vehicles, which you know so well. and who is driving electric vehicles? china. alix: and it is making the batteries. the biggest battery maker in the world is in china. good stuff. you're seeing auto stocks rally big time because of it. coming up, we speak to the former minneapolis federal reserve president. he will be joining us. we've got good earnings. did you really need a rate cut of 25 or 50 basis points? we will discuss. this is blo

see, adaimler, ba i chinese partner of daimler taking a share.etting ready volkswagen earnings on thursday so it is a busy day for earnings and central banks. basic resources, following them up, we see prices for the underlying commodity rising and we see tech stocks doing quite well so here is what you see in terms of the group picture. almost everyone is rising. only retail and travel and leisure are putting up losses in terms of the group picture. next, cutting time. the european central bank meets this thursday followed by the fed next week. will the ecb may the groundwork for cutting action in september or preempt the u.s. with a surprise cut? that's next. this is bloomberg. ♪ matt: welcome back to "bloomberg markets: the european open." 20 minutes into the trading day and looking at gains across the board. for some strategists, this week's ecb meeting is about laying the groundwork for september. markets are assigning a 40% chance that the ecb cuts rates by 10 basis points further into negative territory. investors are guessing whether the

again here autos back in focus again with goldman sachs coming out and sell ratings on daimler. that's pushing that stock lower as well as on peugeot. cac 40 is up 0.16% ftse mib the relative underperformer today, down 0.20%. pretty much a muted picture for the start of european trading. >>> a u.s. judge has slashed damages in a key lawsuit against bayer but refused a retrial saying that monsanto deserves to be punished. bayer will pay 25.$25.27 millio that is down from more than $80 million to a california plaintiff who said round-up weed killer caused his cancer the company said they will appeal against the latest ruling and faces round-up related lawsuits from over 13,000 plaintiffs that is the picture of bayer stock today, up on the news, but still a stock coming under a lot of volatility on the back of the round-up weed cases. >>> another stock we're focused on, burberry has posted a 4% jump in first quarter comparable-store sales beating expectations the luxury group was boosted by demand for new designs, strong performance in china drove growth in its asia pacific busines

anna: what is the story on daimler?has been a roller coaster for the auto sector. >> yes, the stock is under pressure today. we are saying the company come out with earnings, repeating what they said a couple of days ago, a profit warning. the focus is on how they will get out of this. they want to weed out underperforming units, and cars that are not selling well. the stock is down a bit this morning. matt: we are also getting news from aston martin from the last 30 minutes, cutting its 2019 wholesale views. watch the carmakers. this is bloomberg. ♪ we're the slowskys. we like drip coffee, layovers- -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands! check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. ♪ anna: a minuteanna: to go

the other one we need to focus on is daimler.y as well had a third profit wereng in a year, and two back to back. this copy attention to the credit rating agents, they moved their outlook stable. a one notchnaling downgrade over the next 12 months. adding more gloom to that, there is a sell recommendation on daimler from goldman sachs. one thing to watch is dividends, they are key to the dax, important relative to that index. the dax performance, without these dividends, look where it would be. nejra: thank you so much. michael sneyd, global head fx strategy & cross asset strategist, bnp paribas is still with us. let's talk about europe and the ecb. yesterday, bloomberg had a story talking about the ecb revamping its inflation goal in the twilight of the draghi era. we saw bunds spiking. when we talk about the u.s. earlier, you said markets may have gone too far with pricing. could the ecb go further than the market expects in terms of stimulus? michael: the reason stories like this gain attention, one of the main things on the m

you also have daimler needing to cut even more cost.re having a mostly stronger dollar story. money keeps pouring in to all bond markets. here in the u.s., you have yields down three basis points. -39 basis points is where the german ten-year bund year yield since. they are basically trading in tandem. good news for the bond bulls because you get more easing. that is the rhetoric playing out. that is happening, in london we have a transition of power. the current prime minister is heading back to number 10 downing street. back into herget limousine to go to buckingham palace to meet with the queen to hand over the sales. alix: facebook will pay a record $5 billion to settle the ftc privacy claim pro. pay $5reported they will billion. there was a lot of scuttlebutt around that people were not happy that it was not more and there was not more responsibility on facebook's part. chris aleman is still with us. how do you look at the d.c. landscape inditex right now? now? big tech right chris: even though i'm not a fan of regulation, big tech

even though daimler and bmw have cut their targets.ifficult with european car sales falling. we've seen the all-important chinese car market falling. that has hurt a lot of people. why aren't you cutting your forecast as well? even though we see that falling demand around the world affecting your second quarter numbers. frank will join us in a second from wolfsburg to talk about exactly what's going on there. very interesting to hear about volkswagen. we will ask them about this as well. the outlook for the global economy but especially here in germany. yesterday, pmi numbers came out at a seven-year low. how does the biggest carmaker in the world, the biggest employer in germany, feel about that? is the german government doing enough to help the german economy sprout its wings? there's been a lot of concern about whether berlin is spending enough. there's a lot of infrastructure work to be done in germany. driving around the country, you see the audubon under construction everywhere. it seems like no one's working on it. there are sti

daimler, the owner of mercedes, is spending £33 billion.ounced investments of £2110 billion with nearly half of that earmarked for projects in china, with the rest in north america, europe and japan. the car industry's fundamentally changing. there's going to be more change in the next 10—15 years than the previous 100 years. and it's a great shame that, at this critical moment, the uk's punching below its weight because of concerns and uncertainty around brexit, for example. we've got to cut through that as quickly as possible. it is the end of an era for the xj, as the last of the old generation leaves the building. privately the company says, brexit permitting, other models may follow where the xj has led. simon jack, bbc news, castle bromwich. as simon mentioned there, electric vehicles account for 1% of the market here in the uk. why is that figure so low? here is emma simpson to explain. buying a new car — it is a big decision, and for many, it comes down to price. electric cars are more expensive. take this petrol vw. new, it sells f

daimler, the owner of mercedes, is spending £33 billion.announced investments of £2110 billion with nearly half of that earmarked for projects in china, with the rest in north america, europe and japan. the car industry's fundamentally changing. there is going to be more change in the next 10—15 years than the previous 100 years, and it's a great shame that, at this critical moment, the uk's punching below its weight because of concerns and uncertainty around brexit, for example. we've got to cut through that as quickly as possible. it's the end of an era for the xj, as the last of the old generation leaves the building. privately, the company says, brexit permitting, other models may follow where the xj has led. simon jack, bbc news, castle bromwich. as simon mentioned there, electric vehicles account for 1% of the market here in the uk. why is that figure so low? here's emma simpson to explain. buying a new car, it's a big decision and for many it comes down to price. electric cars are more expensive. take this petrol vw. new, it sells fo

daimler, the owner of mercedes, is spending 33 billion.ith nearly half of that earmarked for projects in china, with the rest in north america, europe and japan. the car industry has fundamentally changed. there is going to be more change in the next ten or 15 years than the previous hundred years, and it's a great shame that at this critical moment, the uk is punching below its weight because of concerns and uncertainty over brexit, for example, and we've got to cut through that as quickly as possible. there might be a risk that companies are moving faster than consumers here. although the numbers are growing fast, electric cars only make up 1% of those on the road, principally because there aren't enough of these charging points. there's got to be a risk that we're not ready to buy the cars they want to make. it's the end of an era for the xj, as the last of the old generation leaves the building. privately, the company says, brexit permitting, other models may follow where the xj has led. simon jack, bbc news, castle bromwich. the forme

daimler, the owner of mercedes, is spending £33 billion. investments of £2110 billion, with nearly half of that earmarked for projects in china, with the rest in north america, europe and japan. the car industry's fundamentally changing. there's going to be more change in the next 10—15 years than the previous 100 years. and it's a great shame that, at this critical moment, the uk's punching below its weight because of concerns and uncertainty around brexit, for example. we've got to cut through that as quickly as possible. it is the end of an era for the xj, as the last of the old generation leaves the building. privately the company says, brexit permitting, other models may follow where the xj has led. things are heating up in alaska — the us state has just experienced a new record high temperature. the us weather service says 90 degrees fahrenheit, or 32 celsius, was recorded at anchorage airport on independence day, july the fourth. the previous high was around 30 celsius, while the average at this time of the year is just 18. brian bre

daimler mercedes trading at seven times. we have bmw with similar multiples.hey are cheap for a reason, surely.give us your thesis as to why. mary: our main argument has a lot to do with valuations. as you noted, it is screamingly cheap. it is hard to see things getting worse from here. if there is any surprise to the upside, it would come from the eurozone. the market has been so negative on eurozone autos, on the eurozone economy in general. the potential upside surprise is massive, especially in europe. we see this as an opportunity to take a contrarian view on something we think can't get worse from here. rishaad: ultimately you have great dividends with them as well. of 5.3%.end thanks for joining us. it was a pleasure. nicola joining us from eastspring investments. bloomberg subscribers can catch all of our interviews by using the function tv go. you can also chat by sending instant messages to our team during live programming. do have a look at it. tv . this is bloomberg. ♪ yvonne: wants to a quick check -- worldwide shipments of personal computers

are we done with profit warnings from daimler?[laughter] thata little bit worried the full-year guide -- the full-year guide is sort of on the edge when i look at my model. i'm not saying that will warn again with the second quarter. that is pretty much done with the recent warning on the legal cost. i think if the market does not recover, if there are ongoing issues with the tle in the u.s., if there are ongoing issues with quality recall, then the for your guidance is at risk. we will know that by q3. guy: always a pleasure. thanks for taking the time to join us. senior managing director and global head of automated research joining us from evercore isi. we are done with the european markets. ftse 100 had an ok day. got a lift around 3:00. the auction do not deliver much. ftse 100 up when it presented. cap 40 -- cac 40 under little bit pressure but still up .2%. we will carry on the analysis at the top of the hour. jonathan ferro and i will be joining you for the cable show. dab digital radio is where he will find is an on all o

the german -- the daimler -- >> the daimler warning today. >> oh, my. that is just a gigantic hit.f this is a huge company, for heaven's sakes so there is -- they flood our country with cars. i see that's the area where if i were jay powell i could say, look, i'm looking at the world trade as it comes from autos and it's terrible. he'd be right. >> to that point, peter navarro of course on our air earlier today saying that we're in a quiet period when it comes to u.s./china talks in his words, jim, don't believe anything unless you hear it from light lightheizer or the president himself. here's what he told melissa and joe. >> we're in a quiet period we're going to have constructive talks to deal with the significant structural issues. my advice for investors is to be patient with this process. >> that got followed up by tweets from the president saying mexico is improving. >> yes. >> they worked on this and, again, he insists companies will move back to the united states. >> i have to tell you that i think that navarro really subtly was saying when i say that things are going just

we love the suppliers a lot more >> interesting that the daimler warning did not hurt the auto stocks today u.s. ones. >> eurozone industrial production by the way because we of course continue to point to the relative outperformance of u.s. growth, that was very strong 0.9% and the china data was largely in line with expectations. so we'll see if that continues but not a bad couple data points still ahead, mark cuban is speaking out to cnbc about facebook's push into crypto calling it a big mistake we'll discuss the growing chorus of criticism with kara swisher >>> plus a deep dive into president trump effexoratiffexan the dollar >>> and june producer price index is up. closing bell g llilbeig beinbe . we are on record high closing watch. you might take something for your heart... or joints. but do you take something for your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life. >>> the s&p could actually close above the 3,000 mark for the first time mike santoli i

the bull case is this is a company that is going to be bigger than toyota, daimler, and so on, and ifre elon musk, that is a good shift in the conversation. you don't have as many people going around talking about this thing collapsing any day. emily: talk about a shift in the conversation. it has been a little bit more restrained on twitter, let's say, since his settlement with the sec over how he is communicating with the public. what is your evaluation of musk's leadership, given some of the hiccups over the last year? >> i think people want to invest .ith musk i think him being more is helpful.r quiet i think that being cash flow positive is helpful and having five million books on the for thesheet is helpful growth managers that have not cannotying attention or own this or are of avoiding it to come back and buy it at a lower price then, whatever, a were.go where they emily: we will continue to watch the headlines and listen in on the tesla call and bring you any headlines as we have them. a story we will continue to uber has over has -- announced board member arianna huffington

chinesealso seen the taking a big stake in daimler overnight. bmw rising on an upgrade as well from morgan stanley. we are seeing weakness in the single currency ahead of the ecb thursday. down by .4%. let's get back to our top story, boris johnson is going to succeed theresa may as the u.k.'s next prime minister. this after a beat jeremy hunt in a landslide victory. he will take the reins of the country at home and abroad. in his speech following the announcement, this is what he had to say about the most pressing issues facing britain right now. >> i say to all the doubters, we are going to energize the country, we are going to get brexit done, take advantage of all the opportunities and do this in a spirit of can do. we will believe in ourselves and like a slumbering giant, we will selfoff the negativity and doubt. guy: boris johnson from a little while ago. we are joined now by the joint executive secretary of the 1992 committee, which ran the process , putting boris johnson where he is now. 100 days until halloween. johnson'sntil boris self

the bull case is this is a company that is going to be bigger than toyota, daimler, and so on, and ifre elon musk, that is a good shift in the conversation. you don't have as many people going around talking about this thing collapsing any day. which was happening a year ago. emily: talk about a shift in the conversation. it has been a little bit more restrained on twitter, let's say, since his settlement with the sec over how he is communicating with the public. what is your evaluation of musk's leadership, given some of the hiccups over the last year? >> i think people want to invest with musk. i think him being more restrained or quiet is helpful. i think that being cash flow positive is helpful and having 5 billion bucks on the balance sheet is helpful for the growth managers that have not been paying attention or cannot own this or are of avoiding it to come back and buy it at a lower price then, whatever, a year ago where they were. emily: that was max chafkin and tesla analyst ben kallo. facebook marches forward with an ftc settlement in the rearview mirror and a new investigat

daimler, the owner of mercedes, is spending 33 billion.s in china, with the rest in north america, europe and japan. the car industry has fundamentally changed. there is going to be more change in the next ten or 15 years than the previous hundred years, and it's a great shame that at this critical moment, the uk is punching below its weight because of concerns and uncertainty over brexit, for example, and we've got to cut through that as quickly as possible. there might be a risk that companies are moving faster than consumers here. although the numbers are growing fast, electric cars only make up 1% of those on the road, principally because there aren't enough of these charging points. there's got to be a risk that we're not ready to buy the cars they want to make. it's the end of an era for the xj, as the last of the old generation leaves the building. privately, the company says, brexit permitting, other models may follow where the xj has led. simon jack, bbc news, castle bromwich. let's have a look at some of your questions then... as

are heading towards the close, largely being driven by the car sector with bmw doing well today, daimlerraining higher, it's chinese partner taking a 5% stake in that trading higher. the market close is next. this is bloomberg. ♪ --nie: we are seeing finishing angry. -- in green. moderating those right now for the industry is, but has been a positive day on earnings in europe and on micro data. and on the idea that britain has a new prime minister, so we will see how boris johnson performs over the next 100 days. he is promising to deliver brexit by october 31. the ftse 100 is up 7/10 of 1%. the worst performer today performed a downgrade. and that was the worst performer for that, the hotel and restaurant chain. the dax in germany is up. auto parts makers really did well today in the session and that really pulled up the dax. these companies did extraordinarily well. and continent towel, even though it downgraded for the year, he also rose off the back of the results. the cac 40 up 1% in france. again, mostly on carmakers. the stoxx 600 auto index finishing up 4%. rosey salama towel, it

daimler having a major impact on the dax. it is down .1%. let's look at grr.moving in the -- you can see chemicals put in a good session. mining, auto parts and then things like basic resources. banks also up .1%. the other end of the scale, a few groups lower, including health care. that is the u.s. story, down 1.3%. a lot of trepidation as to what president trump might focus on when it comes to drug pricing, pharmacy benefits managers, and so on. that is impacting u.s. stocks as well. let's look at currencies. eurosterling took a dive. a quarter percent weaker versus the british pound. we have been seesawing quite a bit. the pound at its lowest relative to the euro in 10 sessions. bonds across europe selling off today as well. france particularly impacted for some reason. the idea is the european central bank will get involved in sovereign bond markets. the turkish lira weakening by 1.4%. u.s., the s&p 500 is at 3006. putting in a good performance in the first couple hours of trading. the 10 year yield at 2.12 as markets continue to digest federal reserve st

german auto sector is facing right now in his press conference a little earlier on. ,f you look at daimler can see that. why is it not there at volkswagen? craig: i think you have a situation where they had so much room for improvement from a product mix perspective, they took so long to get into the suv game and take that segment seriously, so you are seeing a situation where they had an opportunity to move the needle on that front. you are seeing them hurt by sales declines and some arelenged markets, but they able to offset that a fair amount by really getting serious about selling suv's at richer prices, and that is sort of buoying them in this environment. vonnie: we are going to leave it there, but lots of news for the car industry. the auto index in the s&p 500 is down 3.3% right now. that is craig trudell of bloomberg news. coming up, guy? guy: facebook's resilience. company ishow the handling regulatory scrutiny. that's next. this is bloomberg. ♪ ♪ from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." it's time for your bloomberg business

daimler down more than 2%. across the board losses in the auto space monday night we had a profit warning. so all-together this is painting a fairly negative picture when it comes to autos and chinese demand for autos >> as you mentioned, a lot of s posse exposure to china. and singl singling out the trad. now they are in deep negative territory. a huge down grade for the sector no wonder they are down 6% today. >> really seeing the macro head winds translating into hitting corporate earnings i think that is why we're seeing a negative sector. >> and another reason are focusk shares extending monday's slide. you can see down more than 3%. thousand employs of employees are either awaiting their fate or have already been sent home remember yesterday the stock was down more than 6% in trading optimistic, ambitious, radical, these are just some of the reactions deutsche bank's major overha overhaul questions remain over sxug and future he revenue growth we're following this story closely. and we were speaking about

daimler stands out. the italian market up .2%.e a look at how the sector breakdown works today. some of the car stocks are doing well, some of the oil stocks as well. the tension in the gulf. those are the biggest gaining sectors. basic resources trading to the upside. hard to discern any clear trend out of the sector rotation story. let's take a look at the bottom end of the market and take a look at the idea of where we said. -- where we sit. real estate down .7%. telecoms trading lower as well. some rotation. not a great deal when it comes to the sector story. a the individual names. phillips decent numbers today. they've pushed forward a whole load of new products. it seems to be working. oncredit, a report earlier talking about significant job cuts. we've just seen the big job cuts through deutsche bank. i brought up bp, trading up by .9%. a look at the european markets at the close. vonnie: some gains in the united states, the dow just turned negative. the s&p 500 up .1%. nasdaq.way is the that includes applied materials, on

this is not as good as peugeot or volkswagen, but better -- much better than what time ler had t daimler had to say >> do you think the results is a reflection of the management >> i think mr. ghosn who had to leave, he was a powerful manager, there for more than ten years, he had so much control on the company, that naturally there's a vacuum after ghosn has gone, so to say. and i think this creates probably some uncertainties at all levels of renault. this is what i could imagine what i've heard from mr. bollore a couple minutes ago, what i could read today, this sounds quite okay i think renault is not in great shape. the markets don't help at the moment there's no real product story except one or two electric cars. but other than that, i think it's not -- as i said, it's not as bad as one could fear >> sir, i'm actually the lady who spoke to mr. bollore earlier, i thought it was interesting how positive he was on the outlook on china, particularly because they're starting from a small base and they are rolling out so many electric cars there. do you share that optimism that renault c

daimler issuing a product warning. it expects to swing to a loss in the second quarter citing higher costs relating to the global recall of takata air bags shares down by more than a percent at this point but 18% in three months and shareholders will vote on the planned $38 billion share in august. it's expected shareholders will approve that deal but the price angered several investors saying carl icahn that called for a special board meeting. straight ahead, anyone listening? google claimed defense after new outrage services over it's google home assistant. you'll want to hear this story then a dramatic drug bust. incredible video you havtoe see. this is the teaser here. worldwide exchange is back after this dear tech, let's talk. we have a pretty good relationship. you've done a lot of good for the world. but i feel like you have the potential to do so much more. can we build ai without bias? how do we bake security into everything we do? we need tech that helps people understand each other. that understands my busi

the only good news we are seeing in europe is the profit warnings in the last week from daimler have been met with unchanged share prices. maybe in europe a lot of the bad news is already in the price. vonnie: what do we do with currencies given that we might be looking at a scenario where the british pound tumbles. stanleyctor of morgan saying we could be looking at parity if there is no deal brexit scenario. neil: i think we have been living with this brexit uncertainty inside sterling for some time. we have been saying to clients that sterling is the that will , depending one good news or bad news. both of the conservative party candidates for leadership have been sounding quite constructive on a no deal type of outcome, if that is where the negotiations with the european union work ahead. head.e to i would argue that many clients have already taken a view, they have hedged sterling or sold sterling. i'm not sure how much and there is to a weaker sterling. economic numbers, sterling is 30% undervalued. as i travel around the world in asia for the last two weeks, i'm finding a lot

daimler 1.5% porsche trading 2.4%, up renault 1.6% these stocks very, very exposed to the narrative aroundde and seeing another sector there the semiconductors performing relatively well. you can seeof course that reaction seems to be based on those conversations between the two u.s. and chinese presidents and it's because of those two getting together in osaka that seemingly we're seeing some of those sectors performing well. the u.s. and china said they will restart trade talks after a meeting between presidents trump and xi washington promised they would not impose any new tariffs so long as beijing resumes to the negotiating table. and they can sell some products to huawei and a u.s. official says the decision does not represent a, quote, general amnesty for the chinese tech giant. after he arrived in the south korean capital, seoul, mr. trump hailed the progress made in china. >> it was a great summit, a lot of good spirit a lot of goodwill and that brings really very importantly the world leaders together, each to discuss some of the most important economic opportunities and challeng

than to be daimler. >> why is business investment down or not up? >> i think there is a factor that has been underrecognized or underreported so far sure, trade uncertainty, foreign policy uncertainties, any kind of uncertainty creates a drag, but i think we're hearing from the democratic party presidential primary nominees such anti-business rhetoric, such advocacy of increased regulation, increased taxes, that that's got to be a factor that's got to play into business's decision about investment decisions they're going to make today that are only going to earn profits after the next presidential election >> very interesting. and you're right not many people have pointed to that, but the rhetoric, not to mention the break-up talk and the -- and the sometimes not so veiled discussion of socialism has got to be playing in the background somewhere >> look, you can have whatever political point of view you want, but if you're a business decision maker, you have to take into account that if some of these are implemented, profits will be lower. if profit

production was still down half a percent year over year automakers are among the leaders in europe, with daimler a notable underperformer after the company issued its second profit warning in less than a month, saying its full-year profit would be significantly below last year's. elsewhere, the lira is under pressure this morning, after turkey took delivery of a russian missile defense system in defiance of tariff threats from the u.s and finally, europe taking a softer approach to iran, with dow jones reporting that leaders are likely to put off a decision on whether to take action against the country for twice breaching the nuclear deal this month. guys, back over to you >> leslie picker, thank you. let's get over to sue herrera now for a news update. hey, sue >> good morning, morgan. good morning, everybody. here's what's happening at this hour president trump announcing that labor secretary alex acosta will resign this following acosta's handling of a 2018 secret plea deal with jeffrey epstein, who was accused of sexually abusing dozens of underage girls president trump had nothing but prais