we will make the best deals out of ducati. the global ceo of ducati joining us from san francisco.nd i love the jacket. shery: i do, too. if you missed anything on the is your function. this is bloomberg. ♪ 2 p.m. in new york, 11 p.m. in san francisco, and 7 p.m. in london. >> welcome to "bloomberg markets." ♪ julia: we are live from the bloomberg world headquarters in new york for the next hour. here are the top stories we are covering on the bloomberg and around the world. hear why the economy and the markets are at risk of a hangover. the chip partner of the iphone forecasts weak demand. chief of the central bank of south africa joins us live. u.s. markets close in two hours. let's get a check on where stocks are trading with julie hyman. julie: we broke the three-day winning streak.

. >> is the sale of ducati back on the table? >> it's not. my background, i have to say, belongs in motorcycles i was in charge of motorcycle brands i think there is a future and we have to decide now what could be the way forward. will it be a multi brand strategy, more electrification i think wo-wheelers will play role in individual mobility. that will be our driving theme, also for the next ten years or so what we have to do now is forward strategy >> there's no secret that the council was opposed to the ducati sale. what did you do to bring them to the table and bury the hatchet it has not always been easy with the works council. >> no, but for many years he's been in the company, and he was as head of the works council he knows the company from inside out and also a strategic thinker. this is where we're quite close in our estimate on how the future looks, what challenges we're facing, and that allowed us to finally agree to a olympian which is -- which will reduce our work force considerably in germany but also allow us to invest in fut

this is the eldest each ducati will be. good for those. that might each. going to do business school work ships it would be curious to. know which would you put in your three years through two or three years your pursuit because rescript it was more good with regard to the group aboard floor. so if you were to. reduce the risk of an order or to boost you could pursue a certain extent but the more pierce is removed from the group more new sure learn you feel in your prayer moved for work go to work or change your porch to your resume your promotion if they care about where your missile rich. there's strong pressure by the security company by dependence again and by demeter . donald trump to do something about it seemed good probably at some stage she might give into his pressure but i don't think it is his intention what i consider more likely down another u.s. military attack on syria is that the united states' policy will be to wreck any ethyl by the russians to ted's and healing ins to find a political solution. for a world cup twenty eight team coverage

eighteen people after they attacked a military base in two villages near the nigerian city of my ducati dozens of people were wounded officials that the militants fired mortars the troops on the base and suicide bombers detonated explosives in the village. in coasta rica the center left. has decisively won the presidential election with nearly all the votes counted the electoral commission announced that casey had taken almost two thirds of the vote he defeated a conservative evangelical preacher who opposed same sex marriage nobel peace prize winner malala yousafzai has left pakistan after making her first visit to the country since being shot in two thousand and twelve use of side rose to prominence after taliban militants tried to kill her for promoting girls' education she said she plans to return permanently after completing her studies in britain. the reports coming in from syria suggest rebel fighters have agreed to leave their last stronghold in eastern guta program forces say they've reached a deal with the largest rebel group army of islam to pull out of this territory but som

matiasis miller -- miller was in the leadership seat when reports surfaced that ducati was to be soldunions did not like that. it ruffled feathers. he had to call back on plans or who put them in place had to pull back. it is a very different story. deutsche bank is doing very poorly as far as the goal of returning cash to shareholders. whereas volkswagen is doing well. ,hey are making decent margins a ton of cash. they are the biggest carmaker and the world, and their stock is up 30% over the last 12 months. miller has been doing a good job. this is a real surprise. at deutsche bank, everyone saw the writing on the wall. vonnie: what do you know about ?ow vw will move forward is there a strategic plan in place? matt: there is a plan already put in place by the team. shareholders and analysts seem very happy with this plan. bloomberg news just did a piece where they called to shareholders -- and it is on the terminal on the ticker, and most of the people they spoke with said there is a plan in place, iess comes in,d he just has to expand on that. they have an electric version of every

result of this matt: sadly for me as a ducati likelycle fan, they will look at that unit to see if itts in with her passenger car strategy. also some other parts units. most importantly to investors is the two units. they are paying the way for an ipo of those units that could value them collectively at about $30 billion. this is a time when volkswagen needs cash. they want to invest $50 billion into electric cars over the next 10 years or so to become a market leader. an electric make version of every one of their more than 300 models across 12 the brands. so they could really use the money, especially coming out of the diesel scandal. mark: great job, matt. they are calling in the wall five wolfsburg. for decades, the state of saudi aramco's financial performance has been one of the biggest secrets. but a first glimpse at its shows the company churned out almost $34 billion in the first half of 2017. will kennedy is here. what is the highlight of what is being uncovered? : the bottom-line is a pretty big highlight, $34 million in the first half of 2017. that puts it ahead of any oth

i didn't see any police officers at that point, ducati as the liverpool fans rushed towards the romantinued in that direction. inside the grounds, liverpool ran out 5—2 winners to put themselves on course for a place in the champions league final, but the second leg is still to come in rome next week. are you scared about that? obviously, we hear stories about people over there, different supporters and stuff, they harm you and stuff. over there could be worse, there could be less liverpool fans and more of them. there was young kids last night, even throwing flares about. the governing body uefa describes these scenes as vile, it is now up to them and the rest of the authorities to prevent a repeat of such scenes in the italian capital. time for a look at the weather, here's louise lear. it's all gone off with a bang this evening, i wonder how many people we re evening, i wonder how many people were caught out after a glorious how to make with lots of sunshine. quite a rash of showers, look at these thunderstorms over the last security hours, particularly the midlands and eastern en

they had a problem trying this with ducati.y are hoping they can do it well with the truck unit. we just got some breaking lines. labor unions fully support the new ceo and overhaul plan. the unions are saying the decision on the truck ipo is still open. these are just headlines crossing now. matt, is there anything that is still concerning investors from here? there is -- there has to be -- labor union support for this to happen. not everyone understands the way german companies work. half of the board seats are filled by labor union representatives. 10 of their board seats are filled with labor union representatives. two of those 20 seats are filled by government representatives because the state owns 20% of volkswagen. seatsthe 20 ceos -- represent workers or the people. this kind of thing cannot go ahead without their approval. that is what is interesting. they not tense over a job cutting package that they wanted a couple of years ago. he was able to get it through. that is another reason investors are positive about the m

the labor unions blocked the spinoff or sale of ducati. can they do that?labor unions are very influential at volkswagen. earlier this morning, the top labor union official signaled support to prepare a soft listing. it is pretty unlikely that they will turn around and not support that plan. but of course, they will make sure that any future strategy will protect jobs at the trucks unit, at m.a.n. the main reason behind this is broadening the investor base. there is a different group of investors interested in capital goods and trucks band in cars. fewand there are very overlaps. matt: thank you very much. christoph rauwald covers volkswagen for us and bloomberg. back to you in the story. guy: breaking news coming out of the corporate sector. i want to focus on sage, down very sharply this morning. let me show you what is happening with the stock, it is down -- at one point it was down 15%. i have not checked in the last few seconds. 15%e we go, 50% to the -- to the downside. there is a cut to the revenue outlook this morning. investors are not reacting wel

he's in charge of the whole group — remember vw includes audi, bentley, scania, ducati, skoda and porscheng hijacked by fast food giants, coffee shops and retailers — according to a study by the think tank reform. it says 40% of apprenticeships — approved and subsidised by the government, are no such thing — just low—skilled jobs dressed up to look like bona fide training. so who is the new man driving vw? he's herbert diess. he used to be at bmw. he's known to be tough on cutting costs and not afraid to clash with the unions. the german newspaper sueddeutsche zeitung daily calls him "tough—as—nails". he has been running the vw brand, which has managed to come out of the diesel emissions scandal remarkably well — let's face it vw is the world's biggest car maker. last yea r‘s sales were its highest ever. joining us now is david bailey, professor of industry, at aston business school. why the change? they recognise they should probably opened up earlier and brought in an outsider. so this is about opening up, it is as you no noted it is about cutting cost, he has clashed with union, he has

ducati it'll take more thanjust plans before many disabled passengers feel control taking to the skies has annodnced an investment?! to build new fans ofthe same level : 252g soybeans, cars and orangejuice. it's the latest move in an increasingly tense trade row between the world's two biggest economies. this vauxhall investment — how important is that for the uk car making industry? the french company that owns vauxhall is showing a bit of love for luton. we don't know the exact figure, but it's thought to be worth tens of millions of pounds and secured with a contribution from the government.

he's in charge of the whole group — remember, vw includes audi, bentley, scania, ducati skoda and porschesign of how tough, is at moment. they will be renewing 1,000 temporaryjobs at its plant, it will not be renewing 1,000 temporaryjobs at its plant in solihull. to put that in context, jlr has a workforce of 10,000 at solihull. and we have news aboutjp morgan thatis and we have news aboutjp morgan that is reaching us. that things have got off to a very good start for the us banking giant. their net income was up $8.7 billion, more than a third on the same quarter last year. than a third on the same quarter last yea r. sales than a third on the same quarter last year. sales also what10%, at $28.5 billion. high interest rates and lower... wishes beat our north american business correspondent who is standing by. —— should speak to. what is behind the soaring global profits atjpl? what is behind the soaring global profits at jpl? you and i might hate stock market volatility, the big movements we store injanuary might have made just movements we store injanuary might have madejust a mac plung