let's go to hans nichols and berlin. act right to get away with this? hans: we know this had been in place from 2009 to 2015. they have now said you can no longer buy diesel vehicles in the states for 2015. is down anywhere from 14-15%. we have the ceo in crisis mode. which hasallegations referred it to the justice department. installedthey have devices on their cars to cheat the auto emission standards. limit.0 times the legal on itou have that device opens up the throttle and that's what is fun. it just so happens it did not meet emissions standards. here is the quote from over the weekend, he said i am personally sorry that we have broken the trust of our customers and we withcooperate fully transparency and urgency to clearly, openly and completely establish all the facts in this are the cars effected. beatle, and audi a3. 26% of their july sales were models.l the criticism is that he has not gone electric fast enough and has not done enough for the u.s. market. commentary int of the german press saying, maybe european regulators could be looking at

we are joined by international correspondent hans nichols at volkswagen headquarters. an chilcote is outside a dealership in london. hans, is matthias mueller clear of the scandal? hans: in some ways, porsche doesn't have a diesel problem. if you think the problem is focused on diesel, mueller isn't necessarily tainted by it. they have one diesel offering. in some ways, he has a bigger challenge. the entire european auto industry has a bigger challenge. behind me, you can see greenpeace. they have pinocchio. they are protesting. they are saying, no more lies. what they are saying is that the diesel scandal in the united states is just the tip of the iceberg. in some ways, you look at the body language and the pronouncements from her again later's and they are on the same page with greenpeace. the eu want to test everything. they are urging all countries to test. there's a report out in a spanish newspaper that 720,000 the a kohl's will be tested there. when i spoke with matthias mueller i asked him, is there a danger if regulators went too far? what would they do to the

hans nichols joins us from berlin. how is angela merkel making her argument? ns: night, she really leaned into this idea that unless you have some sort of distribution system, you could have commerce consequences. you could have consequences for trade. other times she has made the humanitarian argument. in germany, she made the historical argument that germany has an obligation to help those in need. at this press conference, so far they have been focusing on the reforms that spain has made in terms of their economy. they will quickly shift to action talk. she wants to see concrete plans. she will have her own plans up to 24. the news has been dominated up to the last 38 hours about the refugee crisis. late last night, a train pulled in -- five trains pulled into munich from the austrian hungarian border and went straight through austria. that is what is receiving the most asylum applications. take a look at these asylum numbers. this is for the first half of 2015 -- the number of applications in germany -- already at 180,000. you compare that to other countrie

back to hans nichols who is at the auto show in frankfurt. to talk to the head of sales at bmw. s: the head of sales, good morning. mr. ian robinson. he has been trying to sell me on something all morning and he has a layaway program for me. thank you for joining us. we have what can only be described as a sleek, sexy automobile. tell us about the new seven series. >> six generations with a lot of history. everyone has been more successful than the last. 13 new technologies on this vehicle. it is a very simple one like gesture controlled or that you can make the radio go up or the radio go down. hans: i am the driver. >> you can do everything from a tablet. it can self park itself so that you can get out of the car. you can use your key and move it into a very narrow space. previouster than the generation. 130 kilos lighter. 300 pounds if you want to turn it a different way. that is a full grown adult. and all of the luggage in the boot. very sporty and dynamic. when we talk about what is happening in china, what is going to happen for the next two or three months. we have seen w

let's bring in hans nichols in berlin. look to this summit later on today in brussels, talk about the economic cost so far of the crisis. there is a humanitarian and economic cost. hans: on the economic side, what germany has pledged to do is spend 6 billion for 2016. nobody has figured out the numbers for 2015 in part is no one knows how many refugees will apply for asylum. we have new numbers from the oecd. they just put a big report out. they tell us where a lot of refugees, and some economic migrants are coming from. coming hungary, some are from syria, 28% from afghanistan. almost 20% are coming from kosovo, a balkan country. angela merkel would like to see economic migrants sent back faster so she can focus on a redistribution plan. we spoke with the secretary-general of the oecd and there seems to be a lot more negotiating between leaders in brussels before they come up with an agreement. >> be on the issues of resettlement and quarters which are being discussed today and --orrow, it is important receiving countries

so, hans nichols had a chat. hans, you join me now. great interview.e the way when he reacted about china, which was don't panic. there is a wonderful sitdom. this country. germans are not blinking. hans: well, they are concerned but not panic. i think most of that focus is in auto industrye figure look in a country that is so export dependent. they see turmoil in china and they do not see all that solid growth in south america. north america is still strong. they are banking on that. in terms of the greek uncertainty, he did suggest there were concerned about that. the most interesting thing is that he held up the idea that the review could maybe potentially, possibly be in november. you have done dozens of interviews and by dozens i mean hundreds, and afterwards you autopsy yourself and what you could have done differently. i wish i would have pressed him harder that it is possible they are counting on the review for greece to place in november and not october. he can close to saying that. i should have pressed him. mea culpa. manus: oh, hans. i suff

we are joined now by hans nichols who is at volkswagen's headquarters. also joined by ryan, is covering the story and the widening of the story here in the u k. hans, let's start with you. is it clear he is good to lead? hans: it appears to be so. even if you think it is the cover-up, the actual idea that some company's were fudging diesel emissions, they don't really have that many diesel vehicles. i suppose if you went to pan american, you could get that four-door sedan. they were not making this clean energy put. that said, matthias looks like sche.s lost porch they have been a profit center for the volkswagen. muehlleroke with mr. lastly, i suspected regular leaders could go too far on mission control. here is what he said last week. first of all, it is a big challenge to reduce the co2 to 25 grams per kilometer. they should be careful to keep the new orders at 25 at that time. because it is a huge challenge for the target for 2020. hans: there is a regulator danger that they go too far. heardlin yesterday, we from the transportation ministry. they w

hans nichols in frankfurt. coming up, it a few weeks away -- a few months away from a global recession. we will hear from goldman sachs top economists after the break. ♪ jonathan: 18 minutes past the hour. the bank of japan refrains from boosting the stimulus. the economist from goldman sachs are among those who project the moves. the yen strengthens. he has been sworn in as australia's six prime minister in eight years. he is a former executive at goldman sachs. giants --ead with with plans in china. >> we see an enormous process underway in china. where convinced that china will continue to grow no longer into digits, but it will grow. we are getting ready for this. .here is growth which is why in the northwest, -- our plan is to build a budget west of china. spathan: 19 minutes into the trading session. the ftse 100 coming off the back of a three-day losing streak. by .2%.igh biggest two-day drop in three weeks. switch up the board. you -- thatd buys flat. we are an hour and minutes away expected to drop bac

hans nichols is live on location. hans, can we quantify, get our arms around the scale of the problem that the person that takes over will have to deal with? 40 billion is the number from jpmorgan. know all the jurisdictions that for swaggy will be investigated in, and will they include a criminal component. there are three discussions going on. one, the confession. two, how far up the chain of command is their culpability? then knowledge that volkswagen was actively, knowingly trying to defeat epa testers so they could game the emissions game. three, how big of a problem is this in the area? is this a german industry problem? we heard from angela merkel repeat her commitment to lowering emissions. it is better on the carbon footprint. it is not as great and other particulate matter. germany went with diesel. you look at the saturation, the penetration some of these auto companies have in the diesel market. it is well above 50%. will there be a government policy shift towards hybrid, becauselectrics, that is what direc

hans nichols has more on what to expect. front and center, the refugee crisis is that what dominates the conversation? hans:absolutely, -- absolutely. he has just a flood of his plan a couple of days ago. to,000 over the wanted 60,000. i went to be listening for whether or not mr. juncker tweaks the numbers. early, he was talking about the 500,000 number. that number was what the vice chancellor of germany said they can accept every year going forward, if not indefinitely, at least for three to five years. really doable for a single country. it is doable for all of your. just take a look at what has happened in the last four days in germany. have arrived in germany and berlin alone, 1000 per day. they are building structures and housing. much more needs to be done. they need to reconcile the numbers. jonathan: jean-claude juncker has begin speaking just now. let's listen in. juncker: as luxembourg prime minister frequently, to be precise it was 20 times i gave the state of the nation speech. mostly i got applauded after the

let's cross live to hans nichols who is joined by the opal c.e.o. hans?s: i am joined by carl thomas newman. e is the c.e.o. of opel. you're going to help return to profitability in europe? >> we designed it from scratch. it has innovations in it and features that apoint ins the upper class. hans: the upper class. the rolls-royce crowd. they are going to think they are ? ssing something on the table >> exactly. we bring luxury to standard ordinary cars like massage seats. safety features. we have a new light system that doesn't glare to oncoming traffic. hans: the new system won't annoy the chauffeur of the rolls-royce. won't get into that. give us an update of when you'll return to profit. >> we didn't change the entry price but we hope and think we can generate more money with a car with all of these options. we are on track and committed that we want to achieve, break even next year. we never said it is easy, but we are working at it and we like it so far. hans: 2016 is the calendar year you expect to break even at opel? >> correct. hans: that is the g

let's go straight to hans nichols in berlin. ave we learned from this new report and how will that affect the debate in brussels? hans: well, we have learned how dramatic the number increase has been from 2014 to 2015. these oecd numbers, francine, which have 700,000 through this year through the european union, those are still shy of a lot of the estimates, even the estimates for germany alone, which they now expect one million refugees here. we are also getting a better picture of the origin of the countries. that may be the most benefit of this report. the first half of this year, 14% of asylum applications came from syria. but an equal number came from serbia and kosovo. let me make sure i have the numbers right -- 14 and 14. 11% from afghanistan. we are getting a better makeup of the kind of refugees that are arriving. hungary,take a look at they have about 100,000 refugees who passed through. most of them are from syria, but you also have afghanistan, and you also have kosovo up there at 22%. you have a similar story in gre

to hans nichols. saying, norway has become the latest country to be embroiled in the whole swag and emissions scandal. she made the point this is great for tesla because they came out with a new car while volkswagen is still embroiled in scandal. let's talk about where the next volkswagen deal is. bes: 147 vehicles will affected. there is a suit in harris county, texas that is $100 million. i'm not sure how they arrived at their math. we will see if they get support for major he or judge. we have the macro picture from the bank of america. andeffect on gdp in hungary the czech republic, if the gdp is bad. romania and poland less than zero point 5%. there could be a real gdp impact for eastern european countries as a result of the volkswagen scandal. francine: thank you for keeping a close eye on this. hans nichols in berlin. we talk to the founder and ceo of a company that can help customers create that elusive on social media. we are talking about a meeting yesterday and buying a huge chunk of media

we are looking ahead with hans nichols. what kind of the day is druggy going to have? call this tumultuous. we had the meeting later in malta. if we get bad data on the cpi, the expectation is for 0 for eurozone inflation. if it goes downward like we had in germany yesterday, the estimate was for 0 and came in -.2%, that will put pressure on druggy to expand the size and scope of qe. that makes the meeting in malta that much more important. to you and i can fight off there on who gets to go cover it. guy: i think probably jon ferro. what can we expect out of germany? this unemployment level is obviously a factor. story that we haven't priced into the german daily at? but that will be several months down. a lot of it has been mostly positive, a lot of numbers coming out. pmi has been a lot better. what we will get is unemployment, 6.4% is where they were at last year. but i can't quite figure out is if german unemployment is so low, why do we have inflation dropping month on month? that could mean that there is no upward pressure on wages. the energy picture hasn't chan

let's go to our international correspondent hans nichols for more in berlin. ugh the latest. the story keeps developing. hans: the u.s. department of justice is having a criminal investigation into the matter. that does not mean they will bring charges. this is very serious. volkswagen seems to appreciate how serious it is. michael horn, the head of volkswagen's north american operations conceded that volkswagen had made some mistakes. >> we stated that this matter and this is common sense, now is the first fire ready for him personally and the board of management. let's be clear about this. our company was dishonest. with the epa and the california air resources board and with all of you. and in my german words, we have totally screwed up. >> let's take a two or the violations it may be facing. they have indicated they will be holding hearings and -- in the coming weeks. a very public airing of alleged misdeeds. the traffic and transport ministry and the environmental ministry are saying they want answers. the financial -- they are indicating that if there are

guy: hans nichols joins us live from berlin. ns, he works for the business for 34 years, he is part of the business, he is embedded. we have a series of key meetings over the next few days, by the end of the week will he still be ceo? hans: that is the question everyone is asking. know is really need to what those five board members of the executive committee of the supervisory board remember -- normally they are six, in this case there are five. you have to know what direction they are heading. a local paper actually reported that last night the executive committee met. this morning there reporting -- we confirmed that part, this learning they are reporting that dr.winterkorn has lost the support of some members of his board. they are suggesting that he will no longer be ceo at the end of the week. when i listened to dr. winterkorn yesterday, in that statement he made, it sounded like a ceo who is fighting for his job. he has to convince a couple of key members. the controlling stake of the porsche family is on their. has those

anna: let's go to our international correspondent hans nichols who is in berlin. his germany regretting its decision to take 800,000 refugees? that question was being asked over the weekend. hans: many in angela merkel's party over the weekend started to be more critical of her initial decision to extend the dublin of court and allow that temporary measure him because they think it sent the wrong signal. what we had this morning is trains were started -- were expected to resume. the border will be controlled at the austrian-germany order. sending a signal to the rest of your. letting them know that the .urrent situation cannot go on about the breaking point here in germany. yesterday, i visited some of the temporary spots here in berlin where they do have some setups going up and it is remarkable what a breaking point germany as that. they are converting sports halls. they are using empty soccer fields. here's the situation. the hungarian premier has praised germany's move in an interview saying it is an important first step and he is waiting to see more. the austr

hans nichols. how far thisut could go, the impact on other industry companies being hit today. francine: they give so much with the very latest on the markets. let's stay with china. president xi jingping beget a weeklong u.s. visit yesterday with a trip to seattle. speaking to a gathering of business owners including bill gates he says that china will not devalue the yuan. >> given the economic and financial situation at home and abroad, there is no basis for continuous depreciation of the renmimbi. but we will stick to the plan to have the exchange rate -- and have the market flow those ways. we are against currency war. we will not lower interest rates to boost exports. francine: david tweed joins us with the latest. david is in hong kong for us. can you take xi's words that there will not be for the devaluation? david: when you consider what happened in august to china's foreign currency reserves and the estimate is that at least 93 if not more billion dollars was spent defending china's curren

hans nichols went to visit the place where more than half the inhabitants work for the same company, en. cons: it is a little town -- hans: it is a little town on a wide waterway, built for one company. volkswagen. with an average income of 92,000 euros per person, it is one of the richest cities in europe. the company employs 70,000 of the 125,000 inhabitants. that is why the scandal is more than just a passing headline. build by the knot sees in the 1930's to make the original peoples car, the factory is the biggest in europe with its own power plant. the company owns and brands the local soccer club, which won the coveted award this year. the art museum was opened in 1994 and financed the volkswagen foundation. acreain attraction is a 28 theme park they built for 400 million euros. with the unemployment rate below the german average, the question is whether this main entrance will continue to be a two-way street or just be an exit for workers driving volkswagens. hans nichols. it could still, be this year. how the market are seeing janet yellen's comments on the fed hike. ♪ >> thes

hans nichols joins us from berlin. say, will he be speaking a lot of mandarin? hans: we was see has get his mandarin and greek is. the one thing we know we would get today is what mario draghi and governing council say about inflation. three months ago, they expected to be at 0.3% that really hasn't happened. we haven't seen that much inflation so they may have to revise that. three months ago they said oil would be $63 a barrel. it reached a low of $43 a barrel. you will see how they factor in inflation. if they revise it down once, the give any hint about extending the length of quantitative easing? will they change the type of assets they are buying? those are minor tweaks they could potentially do. talk the euro down a little bit. but the main issue will be inflation. they haven't seen the kind of inflation they expected. i amis the big thing looking at. then, when they get to the press conference, how does he handily china volatility question? is the ship sailing straight , the deputy finance minister -- they are not panicking. will mario draghi strike the s

say, we canased to get over to the frank for banking conference where hans nichols is standing by withuests. go i'm standing by with a -- hans: i'm sending by with the guests. he is a important guy. he has insight about what is happening in this economy. we have seen the stock market's life. what is that going to do to growth in germany? >> we take it seriously. our car and street has a big market in china. we are not hesitating, because we do not see much of an impact. growingstic growth is a when it comes to writing salaries and pensions. we are doing very well here it hans: when you say you do not see an impact yet, a lot of this negativity happened in the last week or so, there would be a lag time in data. >> we will see that. we have a low interest rates. we have a lot of progrowth as well. we'll see what comes out. it was not reflected in the last quarter's gdp. how concerned are you that there is not going to be a review by october? because the elections, the review could be delayed until november. ofwe do expect at the end october. it is not a problem. -- we expect whoever beco

hans nichols, our european correspondent joining us from the main european processing center. we know about the summit? has there been any plans? hans: we have a euro figure. for 2016.euro someow there's going to be sort of final budget. it is clear there is a need. receiving arean here in berlin. we have been here all morning. what's clear is that more refugees are coming in this morning. 17,000e weekend, we saw come into germany from hungary. it is clear that that number seems to be accelerating. the study number was 10,000. the saturday number was 7000. 10,000.unday number was he saturday number was 7000. angela merkel wants to stay within their budget. right now, they have a surplus for 2015. we will see where they come in at. what is it going to cost for 800,000 refugees. up.e was wrapping things we have a little bit to spare. we will definitely needed to cope. mark, this is a long-term problem. as you can see, with these lines forming, they gave away. increasethey need to their registration process. the lines are moving slow. out, it ises break mostly people. there's a lo

hans nichols is standing by. what can we expect today? think of this as a traditional rate day. think of this as a research day. as an outlook day. what does the e.c.b. think about the state of the economy after we have seen what happened in china and inflation or deflation in some member countries. what we're really going to get is this quarterly update on where they think inflation is going. remember, three months ago they had inflation at 0.3%. it really hasn't had that much positive economic news and you look at some of the underlying assumption that was in that june report with oil at $63 a barrel for an average in 2015. it went down to $43 per barrel. that gives you some of the calculations they will have to reconfigure and if they do reconfigure, what does that mean for quantitative easing? know it is spoasted to be 1.1 trillion euros through september 2016. you could hear a hint from draghi that they were going to extend the length. and extend the asset classes. those are things we're really looking forward to. what he says about c

let's get the latest from hans nichols. hans, i thought this of the enough.t was the money set aside for? hans: the 6.5 billion that volkswagen announced was a set aside for the technical fix, according to a very respected german publication. we still do have anything on the legal provisions side, on how much this will cost. 7 isny said that october the date they want to fix a technical solution, otherwise they will take the cars off the road. if you remember what the ceo's first impulse was last week, it was to find a technical solution. exists,stand that one but it will be very difficult and very costly to put it into effect. more jurisdictions are now raising concerns. there is a potential investigation taking place in sweden. cars that areking affected off the market in spain, in india. in japan they may entirely rethink the way they test vehicles, retest them in a different way. everyr bit of news -- year, there is a survey by an automobile lobbying group in germany, and they test what the advertised and actual miles per gallon for a variety of different

hans nichols, you can watch his full interview on bloomberg.com. what stocks are doing and what the fed is going to do, people are struggling with that. emerging markets are still in the red. how is this impacting where investors put their money. thanks for a much for coming in. we are trying to figure out what these that is going to do this week. my first question that does not matter. >> i think the impact on the points with its 25 basis is right the minimalist. confidence effect on could be dramatic. the one thing it people are fearful of is raising prematurely before the economy starts to accelerate. if we don't get positive numbers from the economy, that could have a negative impact. you bracing for a hike? how do you avoid the crowded trades. vadim: you have to be thoughtful about how you diversify. best. is the you want to have some exposure in the portfolios. olivia: you are one of the only guests who is looking for buying into energy right now. where you bullish on energy? thinkn sachs says they oil can go to $20 a barrel. vadim: that is p

let's go to berlin where hans nichols stands by with more. hange in the data hans, but this will be very sensitive in the years to come as you factor in the refugee crisis as well. hans: no big changes, but the trends in the last three sets of numbers we have had from germany have all disappointed expectations. cpi inflation come in worse than expected, or lower than inspected. this morning, retail sales in germany disappointed a little bit. the unemployment number, even though the expectation was a drop of five -- of 5000. the drop is 2000. no big change to the unemployment rate at 6.4%. but as we look forward to the last three the datasets from germany have disappointed. the cpi number week at 10:00 your time. jonathan: thank you very much. the eurozone in flash and da -- inflation dates are coming up. dudley is scheduled to speak this afternoon. and then, janet yellen. then of course, james bullard will address at 8:00 p.m. u.k. time. this is the worst session since 2011. that is it for me. best of luck for the rest of your day. ♪ francine:

our international correspondent hans nichols is live at vw headquarters. can we quantify yet just how big a mess volkswagen is in? what happens going forward? forward there will be criminal proceedings. volkswagen will cooperate with them. we heard from the premier lower saxony, he is on the board and has a 20% stake on that voting board. he is saying there will be a swift resolution to the criminal side of things, but is also indicating this is the first step. there are a lot of estimates out there. jpmorgan is saying it will cost them $40 billion, the fact is no one knows. no one knows the civil liability will be, or the criminal procedures. i think one question that is being asked, and we're hearing as the sun comes up, cars are coming in all morning. we got into a bit of a traffic jam because a shiftless starting at 10:00 p.m. this company lives, breathes, and plays football for volkswagen. asking,tion germany is with his just be localized on wolfsburg? or is it going to be industrywide? will this affect the entire auto industry? how was germany as a c

mark: the ceo of volkswagen speaking exclusively with hans nichols.ead, when interest go up, which stocks are the best to own? we will dig into a new goldman sachs report next. ♪ mark: welcome back to the bloomberg "market day." i am mark crumpton in new york. of the markets. ramy inocencio in the newsroom. are running on session lows. they are up a little bit higher. investors are concerned over a china slowdown. the industrial output came in weaker than expected over the weekend, and investors cautiously waiting on the fed .ith interest rate the s&p 500, as well as the nasdaq are down the most i about point or percent. a look about the, taking at what analysts are thinking about in terms of the timing for a said rate rise. -- the s&p as well as the nasdaq are down the most at .4%. there is a 28% probability of a rate rise this week. 72% of those that think a rate is coming think it will be a cord or percent or less. by of traders expect a move september. into whatg look people might be thinking about in terms of the fed rate rise. materials as well

let's find out from on's nichols what the world expects. hans: i was in frank for yesterday at a big banking conference. everyone is wondering what is going to happen in terms of quantitative easing. is mario draghi going to hint it could be longer? september 2016, that is when it is expected to end. when we get these predictions for the global outlook for the economy for 2015 and going forward, if we get those in about 30 minutes time and they show that inflation has been disappointing to the downside, that it is not at that .03% they aghi will be asked about the effectiveness of quantitative easing. i think i am most interested in what he has to say about quantitative easing. he is not going to way too much into china. he is not going to be a market commentator that he could indicate whether or not he thinks they need to tweak quantitative easing. erik: one of the things i'm wondering is whether he will be asked for some kind of report card on the quantitative easing strategy the ecb pursued over the summer. they frontloaded quantitative easin

german -- of manus: it translates -- francine: more from hans nichols. provisions may not be enough. hans: we didn't know it would not be enough. we did not know it would be clearly's designated for the tactical fix and not the legal aspect in whatever financial finds volkswagen made face in a variety of jurisdictions. with peopleorting familiar, we have not matched it. a variety is facing of situations across the globe. sweden announced they may be starting a criminal probe. japan said they may reconfigure how they test. some models in spain will not be available for cell and volkswagen will be introducing their own investigation into india. a quick tour around the globe. every time we look, another country talking about some kind of investigation and some kind of questions. has 11 million vehicles out there affected. another side, the entire german auto industry. a report yesterday that said on average, it was daimler that inflated miles per gallon by 48%. that was their average. the most interesting thing is the average for all automakers was 40% infla

francine: for a lookout but we are watching for the rest of the week, we are joined by hans nichols. great exclusive interview. but we are also watching central-bank action around the world. hans: we have central-bank action around the world, a big meeting -- a state visit from --na heading to washington but before he shows up, he will be making a stop in seattle. he did the same thing in 2006 and now it is xi jinping's turn. it is interesting when you look at the tech titans that will be assembled. you could potentially have bill gates, warren buffett, jeff bezos, jack yaw. remarkable story about how important trade is to the west coast of the state and the tech story. they make a stop in seattle before heading to washington. francine: thank you so much. we will hear from janet yellen a little letter, then we have some gross figures. you can follow hans and i on twitter. coming up, it is "surveillance." tom keene will be joined by adam posen. shares are down 20% -- an incredible story. here in europe we are very familiar with the brand. outs almost like finding mostangela merkel, th

let's get perspective from hans nichols in berlin. i am sure mr. draghi was there in his armchair watching the press conference. . are he and yellen on the same page right now? hans: they are on the view of china. the slowdown in china has forced them to rethink macro policies. but in some ways there interests do not align. wants a weak euro. when the euro went close to 140, you saw it rise. now it is all the way to 114. looking formy growth outside the eurozone, and we saw how weak growth is within the eurozone, we know the emerging markets looked grim. it is that that point that the helped exporters. we have the second quarter year t figures.expor up 20% year after year. by the weakained currency in part. in may for strongly to enlarge or lengthen quantitative easing. thet yellen may have sent emerging markets a lifeline. the brazils and turkeys will have less full authority -- volatility for their currency. they would take the u.s. alternative. that is why mario draghi may be painted into a corner with his next round three at whatever he says nex

hans nichols is in berlin with the latest. fill us in with the latest in the last 24 hours. ns: it seems as though denmark has become a flashpoint. overnight, there were reports that some trains from germany were not making it through to denmark and officials and denmark are saying they want to register refugees and or migrants because if they do not they'll will have to deport them, but some people do not want to be fingerprinted because the ultimate goal is sweden and they don't want to become potentially in the applicant process. from angela merkel, we heard strong rhetoric from her. her government attempting the cost could be 10 billion euros. a couple of days ago, it was 6 billion euros which they set aside for 2016. hungary has deployed some 4000 and are planning to deploy 4000 troops to the border to accelerate the building of the fence. officials are calling the situation "extremely grave." the high commissioner for refugees says the commissioner -- of situation is manageable but they say response has been extremely disorganized. clear that this is a serious crisis, b

hans nichols is there with all the action. what is generating the most ooos and aws?ans: probably the most was the new bentley suv. you think of bentley as a car that will be chauffeured around and you will be show forward in, but bentley offering then you see the ultraluxury that had a big moment. some of the offerings for porsche as well with quite a moment but the overall trend or theme is optimism that is coursing through frankfurt. two weeks ago in frankfurt, the pessimistick gave a field. you cannot find that, the auto manufacturers here, for maserati on the high-end -- lamborghini, asked his me, and all the way to rolls-royce and down to peugeot, a lot of the ceos are not that concerned about china and they think china will come back. a little bit worried about brazil. he said he was quite confident that they could start selling cars in iran for pretty soon. >> the first thing you have already decided his the for premium brand, and automobile brand, this is now done, sign, and we're going to kick off this new partnership with islam in to iran. hans: there are a

for a look at what we are watching for the rest of the day , we are joined by hans nichols. we watching? is it the fed? hans: i think we are looking for the fed. here is my advice for america. everyone should stay at the gym, take a spa day, nothing will happen until the federal reserve announces the rate decision at 2:00 p.m. eastern, 8:00 p.m. in germany, 7:00 in london. then we get the press conference 30 minutes later. , when had a colleague ronald reagan was assassinated, he claimed that nothing would happen, so he just went to the gym. if you have that kind of clarity that there will be no major news , you are more clairvoyant than i am. i have no idea what the fed is going to do. it is just bloviating until then. francine: you are absolutely right. european stocks are already fluctuating. this is eight years in the making. i think there is a serious question to be had on how they are going to do this mechanically. if they do decide to raise rates, how they are going to do it. francine: thank you so much. keep it right here on bloomberg tv. stay tuned for the "surveill

let's get to our international correspondent, hans nichols, for more on this from berlin. like the vw stock will be hammered at the get-go. walk us through exactly what the company has done, walk us through how they found out. well, they got found out through the environmental protection agency. before that, there was a separate company that figured something wasn't quite right with volkswagen's in missions, so they alerted the epa. the epa found they had nitrogen fortypollution ten to times acceptable levels. they had software that had the so-called "defeat device," software that overrides and changes the omission so you have more torque when you are driving diesels. they have pledged to cooperate and said they will help the next hurdle investigation. can sensement, "you that they see how serious this is." he is personally and deeply safety and that they will cooperate fully with the responsible agencies with transparency and urgency to clearly, openly, as completely establish all the facts of this case. volkswagen has ordered a next earl investigation of the matter. in pr

hans nichols joins us now from berlin. the morning to you. what are we listening for? hans: if mario starts off his press conference in mandarin, you know it is a bad sign. but what we're really looking for are two things. what do they do? expectations, if they do change, what sort of pants will there be for what they may do? they could maybe talk about hinting clues, extending it beyond september 2016. when you look at expectations, the big question is how are they going to factor in the lower price of oil. when we saw they did in june, when they had expectations for 0.3%. look at a price in june, the price of oil they were thinking of -- about $63 a barrel. they hit all the way down to $43 a barrel last month. when you look at last month, the inflation numbers across major economies, here is what we see in europe -- far below that 0.3%. take a look at germany at 0.2%. france is 0.2%. spain is a negative numbers. italy is higher. we had a strong message last night from the international monetary fund. to all central bankers, saying do not even think about raising inter

hans nichols is in berlin.ing about a few hundred people arriving in berlin, making an impression in the city? munich is where everyone came in last night. there are about five trains coming in. they started from the humvee gary and border and went straight through -- they started from the hungarian border and went straight through austria. there is a perception that there are jobs here. to give you a sense in berlin how acute the crisis is, they are talking about an additional 400 classes for children of refugee families. onyou want the discussions build more tense or build more schools? what germany is talking about is building more schools to have a longer-term integration process. vonnie: there has long been a history of refugees fleeting -- fleeing to europe and there being ultimately problems with france. outside paris there were huge camps for a long time during the iraq war. what will germany due to be up to handle this many migrants? and what about the other countries? hans: germany will not be able to

go to hans nichols in berlin with more on this story.at a disparate response from europe? there is the east and the west? clear dividinga line. he get a sense of what is happening in eastern capital. you look at the latest pictures with potential immigrants, refugees, and migrants coming across the border in great numbers. errect a razoro wire fence of have some sort of prohibition. there is a monetary component. they're talking about 6000 euros per refugee per country. an additional 500 euros for the country that receives them, the point of entry. there are five on top of that for every country that did not abide by the quota system. there are additional 125 thousand resettlement, bringing 160,000 to the goal. looking at individual countries, 31,000 for germany, u.k., , 15,000.pain that is giving you a sense with the burden sharing for refugees for the smaller countries will be. the arguments in the east is that these are migrants not refugees and to many people are coming here for economic reasons, not leaving a war-torn country. they

hans nichols is live from one of the camps.a merkel is saying that europe can only overcome the crisis together, also saying that the current rules are still valid through the bloc. she is talking about these breathtaking events over the weekend in germany. earlier this morning, angela merkel and her coalition agreed to seek an extra 6 billion euros in spending to aid refugees into the country. that adds a next her 3 billion euros to the 2016 federal budget. of chaos andscenes we know the european commission is putting a proposal together for wednesday to tackle this crisis. they are trying to redistribute some of the refugees. and a report by the economic forum says that countries are seeing major opportunities to increase growth, so what can we do in such turbulent times? we are joined by the head of the center for the global agenda. richard, great to have you. i read the report -- the first of its kind you are putting out. see thisay out we refugee crisis that has seriously escalated over the last 45 weeks. inequality can on

hans nichols joins us from berlin. t the ceo may be out. what do we know about that? hans: they've had this story for about two hours and no one has been able to confirm it. volkswagen spokespeople told them that this was not true. here is the brunt of what they reported. they said on friday that the 25th of september, martin, a ceo expecting to extend his contract thed be replaced by mattea current ceo of porsche. pressure has been building. we've heard from labor leaders. we've heard from angela merkel, strongly hinting that volkswagen has to come clean. onhave some great reporting what happened on a conference call last night between the supervisory board members and he was not asked directly whether or not he knew about this so-called defeat device that allowed volkswagen to trick the epa on whether or not they were actually emitting the kind of pollutants they said they were not emitting. saying the company was dishonest, not only with regulators, but with shareholders. how big has this gotten? hans: there are inve

hans nichols of life in location. hans, what is next for vw?o figure out who the new ceo is. we have been here all morning watching cars come in and i have breaking news -- earlier, i thought of bmw. i have been watching all day for non-volkswagen. just of a few minutes ago we had a mercedes:. -- a mercedes pull in. it all has to do with mercedes's general response -- how will they change their public perception? we heard from the minister of lower saxony. this morning he said almost two contradictory things -- one, he says he saw a swift resolution to the problem. they are proceeding with the criminal probe. two, he said it was the first step in a long process. anna, those seem to be the intentions. in some ways, volkswagen is to get cleared, whether it is in germany or france or the united states. then they need to repair their relationships with their customers. task.an and enormous we will be trying to figure out who the new ceo is. the executive committee has a meeting often on. dr. winterkorn's dismissal, the full board meeting, and that

we have hans nichols joining us from berlin. have spent so much time watching negotiations about other things. how are these pictures changing the conversation? hans: in berlin, they are changing things a little bit, in that it seems the german public is united behind the idea that something needs to be done. this is important because it is on the back page. it is such a sad and awful picture. this paper which was very anti-greek bailout is sort of on the side of the refugees, that is a sea change. in brussels, it is a different issue. we just heard the prime minister of hungary saying, this is not a european problem, this is a german problem. the whole thing is very messed up. these kids and their mother and father were trying to get to canada at some point. why does berlin need to take the lead? why can't it be a global response? hans: they are passing through europe and many of them do say their final destination is germany. germany is expecting 800,000 asylum applicants this year. what europe wants to do and i think there doe

fromel mckee: hans nichols berlin, thank you very much.g that germany is so welcoming now to refugees given its history. are they asylum-seekers who really need to be taken in? are they just looking for a better deal? richard haass: what merkel is doing is extraordinary. she has a stature here that is quite extraordinary. no one else is in second place. it says something about her. she has a sensibility. the numbers are far larger than germany is talking about. you have economic migrants from the balkans and the political refugees and all that. this has multiple dimensions. how do you stop the cause of this? how do you resettle people locally? how'd you deal with the of people coming to europe? even the numbers they are talking about simply are not enough. tom keene: a must read on this is from jean park. backgrounderrific piece on all of these themes. andwill the natural right the inflammatory conservative right react to this in europe? richard haass: it's getting ugly. in hungary, the prime minister is an early warning. mr. cameron is ta

betty: thank you so much, hans nichols in germany.att who spoke to the former president of -- matt: the reason he came on with me this morning was to talk about forward pass new super duty truck. the 150 inp above toughness, in hauling capacity and longevity. it also has a possible diesel has its ownit also lumen of construction which less.it way much this is kind of a sales pitch. listen to him introducing his product. last couple of months, sales have been very strong. we are getting the inventory in f 150, we are not quite there yet but we will be in the fourth quarter. we always knew that we were going to have a dip in the late spring-early summer time because now we feelity, but really good about the inventory. you are starting to see that in the sales, and we will see them be a leader for the 39th straight here. phrase, power stroke, turbo diesel, it makes me salivate a little bit. this point, this engine is what every boy wants. all that we are hearing about diesel does not seem good lately? >> clearly we have been known for di

hans nichols is in berlin and joins us with an update. taken on how this story had fallen off the american newspapers. bring us up-to-date on what's happened. hans: the most important political development is that denmark is having their own issue. the government may -- if not collapse, there are stresses in denmark because of the transitory refugees and migrants that want to get this -- get to sweden. the biggest development is that the european commission andident has given his plan that number is either a lowball figure or a short-term fix. if you look at the numbers and the acceleration of the numbers of refugees trying to enter europe in the last four days, 160,000 is not going to come anywhere close to it. one has agreed to that number. the only way that can be real is if they are dealing with the refugees that are in hungary and greece right now in this short-term settlement program. no one is dealing with the numbers honestly, let alone the cost. tom: you are so good at looking at each parliament one by one, whatever the legislati

hans nichols joins us from berlin. how is angela merkel making her argument? s: she is making a three-part argument. the trade-commerce argument said the area could be at risk if you do not have a distribution system and is also making a humanitarian argument and to the german public she is making a historical one. that germany has an obligation to refugees and that germany should be proud that so many want to come here. those fiveght, trains that flew through austria and arrived in munich. some 800 new refugees. looking at the asylum applications, they are accepting thousanding a hundred -- 800,000. compare that to other countries -- much lower. 6000, greecend 6000 -- excuse a, italy is 30,000. leaving behind some of the raw numbers your hearing from inside the regional government. you need to make the distention between economic migrants and refugees from war-torn countries. if you are harsher on the economic migrants, you can have a lot more space for migrants from places like syria. syria tops the list for both countries. you start to see a little differenc

hans nichols is in berlin. volkswagen's woes are snowballing. hans: here is what we know, there is a criminal investigation taking place in the state by the department of justice. there are also a couple whatessional committees. is interesting about congressional hearings is how quickly they arrive and how nimble companies have to be. here in germany, we have three separate developments. we have the environment ministry saying that they want answers. they have fallen short calling for a formal investigation. a lot of reporters try to push them on whether there would be an investigation, however the financial regulator here has said they will look into matters and separately, we have an interview from the transport minister. he is saying that he wants to --eck all the w diesel stash v vw diesels. >> we have seen a reaction from across the suppliers as well. you look at who is selling a lot of diesel and you have to wonder what calculation are they going through? what are their relation strategist saying? what is their board saying? diesel is mostl

hans nichols has more. the trade data out of germany -- talk to me about that. pretty resilient. : it is remarkably resilient. it came in 2.4% higher. imports at 2.2% higher. it wasn't like the german economy was all export driven but they outpaced imports. that gets you to a trade in balance of 25 billion euros for the year. the expectation was 23.5 billion. germany is figuring out countries to export to in a soft july environment. it was soft because of the greece capital controls but it does not look like it affected germany. ago we had quantitative easing but now it looks like germany is the biggest beneficiary of all of this. one thing that we are seeing in germany -- they were costs are increasing, up 3.2%. long-term, it will be hard to remain this competitive with their exports if labor costs continue to rise. we see a side of that story where they try to tempt down their labor costs. it's pretty competitive, but how much longer will it last? jon: the draft budget we are there is a budget that german people would like to see and the rest of europe would like to see. i'm gue

hans nichols in berlin.wrote titled "a fed rate hike -- only if you believe in magic cure co it seems he was right. >> i had a lot of feedback from readers suggesting that the argument is along the lines of quantum physics that spooky things start happening. if the fed is telling you it is extremely nervous and it is keeping rates of zero, there may be a negative cycle of feedback which becomes a self-fulfilling prophecy. businesses don't invest, consumers don't spend. that hurts growth and keeps inflation at deflationary levels. ' point, itwo hans what is explained and adjust with the markets did yesterday. >> the horror is we might go through this again next month and we might go through it again the next month. we might have the same show going all the way up until the end of the first quarter. if the international backdrop does not improve and that continues to keep the fed on hold, they still want to have a two-way market. that is one of the key policy points at the moment. they want people to be thinki