we will hear from the ceo of siemens.orrow, we will bring you our exclusive conversation with askey's president erdogan campaigning gets underway ahead of elections on june 24. erdogan is in london this week. we will bring you that interview 5:00 a.m. tomorrow london time. this is bloomberg. ♪ "bloombergis daybreak: europe." minutes to go until the start of the first cash equity trading day of the week. this is what we are watching out for this week. today, the u.s. opens its embassy in jerusalem, capping a contentious move that has soured american-palestinian relations. the palestinians broke off relations. these are live pictures coming to us from jerusalem. tomorrow, we stick with the u.s. theme, but talk about trade. the vice premier is set to visit washington to continue trade talks with steven mnuchin. we will check in on whether we see any positive move news. friday, russian president vladimir putin and german angela merkel will meet. president trump has switched policy and ordered the commerce department to help a

corporations in particular siemens for one book text revenues of one hundred thirty million euros last year after contracts with iran's surge soon after sanctions had been lifted now siemens will only say that existing projects will be completed quote as far as legally possible. terms decision is a direct hit on european plane maker airbus a contract for one hundred airliners for iran now hangs in the balance. german finance minister olaf scholtz promises to do everything possible to protect european commercial interests i'm struggling that we cannot predict at this point what we can do as the european union has come up like you know news sure you that we are in continuing talks and that i personally will have a couple of telephone conversations with the u.s. colleagues today in order to progress on that issue you don't find it was a. faux wagner had also been banking on business with iran europe's largest carmaker began exporting cars there in twenty seventeen. and a lot of german engineering companies also resumed business with the country as sanctions were lifted and the nuclear dea

we are satisfied with the way it's going on with siemens the project is to reconfirm what we see in thend we plan to have this merger being completed by the end of 2018 in line with our previous announcements. >> finally, one last question for you, on a forward-looking basis, how is the pipeline of orders looking in the future and expected synergies from the siemens deal nfrn >> in terms of pipeline we are entering with have good momentum you have seen we've been awarded the metro line in montreal, the next generation of train in france, so the line is very good so this will fuel our future growth in terms of synergies with siemens, we talked about it at the announcements, there is no further details. we still target 70 million euros of synergies in the coming years coming from stabilization platforming. >> thank you very much, sir. that is it for today's show. i'm joumanna bercetche "worldwide exchange" is coming up next. ♪ tired of wrestling with seemingly impossible cleaning tasks? using wipes in the kitchen, and sprays in the bathroom can be ineffective. try mr. clean magic eraser w

. >>> and siemens second quarter results beat expectations sending shares higher. higher >>> good morning about one hour into the trading session. markets are still coming to terms out of the u.s. yesterday asian markets were mixed overnight. u.s. markets did end the day flattish the picture in europe for the broader composite is looking a bit up, up 0.2%. switching to european markets and getting into what individual indices are doing. the cac 40 is briefly in the red, but markets are looking better ftse 100 up 30 points. no real surprise there because it is a mining exposed index therefore somewhat inadvertent beneficiary of sanctions if they reoccur. we had a drop in ftse and italian assets yesterday you can see it's rebounding somewhat let's switch sectors and see where the leadership is coming from oil and gas is up 1.7%, with the rebound we see in oil prices oil is up 2% this morning. we'll get there in a second. basic resources dragged along for the ride, up more than 1%. on the down side, i want to draw your attention to travel and leisure, down 1.8% almost

sanctions on iran to potential impact on siemens.e need to look at what the sanctions actually mean. [indiscernible] that is exactly what we're going to do. taylor: global news, 24 hours a day, on-air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm taylor riggs. this is bloomberg. francine? francine: thank you so much. italy's populist duo have all but completed a governing plan that includes tax as well as 15% guaranteed income for the poor and a lower retirement age. from italy.latest told the news agency that he and the antimatter print finalized their contract for the government of change. the italian news reports that the league has proposed -- while the five star wants giuseppe conte. joining us is our western europe economy editor. they don't seem to be able to agree on a prime minister yet. on the fundamentals, is there an agreement on what will happen if it is formed? reachedseem to have agreements on the key things such as lowering the retirement age. those are th

we haven't come that far today just to munich to siemens headquarters. i have an appointment with you know. she's the company's chief human resources executive and she's a member of the managing board bring. the. facts who want to work motivation appears a lot in job postings looking for what he rated employee comes even before the job description what exactly is a motivated employee. they have met about awards about well obviously don't want someone who's not motivated you want someone who says i'll take responsibility and i want the best for the company. we see that when we're looking for highly skilled personnel so they say this is what i want and if that's not what you're offering me i'm not interested in. that quarter and to be fair if people have options and you promised them certain conditions that are important to them and don't fulfill them they'll leave. and that's the most expensive thing that can happen to a company when you and then ask if someone leaves within the first twelve months that's pretty much a year's salary you loose along with t

we want to go back to joe kaeser, the siemens ceo.to ask you, is it possible of the industry in the private sector to get together and set the standards and common ground, or do you need the ?overnment let's be honest, the government of china, the united states, european union will have somewhat different unions. joe: that is a good point, and that is why we try to take it in our own hands and move on. the matter of cybersecurity, it has got strategic interests and economic interests, and sometimes those things coincide. we do have the governments to sort of come up with the framework on how to deal with cybersecurity. i actually could imagine to have these cybersecurity component. that is one matter of global trade accompanied, but at some point in time, trading typical goods becomes trading virtual goods, and information and data. we need to find a wto sort of agreement. that will be far away, because it is not a strategic way, so i would go ahead now and do it with partners. we look at the value train with our partners, critical in

corporations in particular siemens for one book text revenues of one hundred thirty million euros last year after contracts with around surge soon after sanctions have been lifted now siemens will only say that existing projects will be completed quote as far as legally possible. terms decision is a direct hit on european plane maker airbus a contract for one hundred airliners for iran now hangs in the balance. german finance minister olaf scholtz promises to do everything possible to protect european commercial interests but i'm struggling with that we cannot predict at this point what we can do as the european union has come out like you know news show you that we are in continuing talks and that i personally will have a couple of telephone conversations with the u.s. colleagues today in order to progress on that is you do it with. fox wagner had also been banking on business with iran europe's largest car maker began exporting cars there in twenty seventeen and a lot of german engineering companies also resumed business with the country as sanctions were lifted and the nuclear deal

in shenzhen siemens is manufacturing state of the art c.t. scanners for the chinese health care market and investing more in domestic research . china's technological advancement still offers plenty of opportunities for companies willing to take advantage of them. to die to banks annual shareholder meeting the worst fears of its workers became a harsh reality on thursday only a few weeks after the bank appointed yet another new c.e.o. this new boss christians even announced more than seven thousand job cuts primarily in investment banking he says it's inevitable despite implementation cost of eight hundred million euros. the up to. less than current results leave us no other choice not we need to put the foundations in place now to ensure sustainable long term profitability and. one thing that even some affected workers can agree on is the changes needed to deitsch a bank. we need a bank that can compete both nationally and internationally and that's not the case at the moment. costs are simply too high they need to be cut back. deutsche bank

turn affects companies like germany siemens its revenues were one hundred thirty million euros up last year after contracts with iran had surged in the wake of the nuclear deal it says it will complete existing projects quote as far as legally possible terms decision is a direct hit on european plane maker airbus a contract for one hundred airliners for iran air now hangs in the balance. german companies are furious that trump is meddling in their earring in business. we need that means the business side needs leaders certainty on the one hand or the other if we have three european say we don't allow any iran business so then we have to live with that but it's a fair. level playing field that the u.s. says that we as europeans are not allowed to make business with kompany s. even e.u. companies that supply iran with goods for the food industry are between a rock and a hard place if trumpery imposes sanctions they could face legal consequences in the u.s. many won't take that risk and will pull out of iran instead. french president de manuel marquez has been in office for a year now and

yet despite the difficulties china's huge market continues to attract in shenzhen siemens is manufacturing state of the art c.t. scanners for the chinese health care market and investing more in domestic research china's technological advancement still offers plenty of opportunities. brazilian truck drivers are protesting for the fisc consecutive day over rising fuel costs to spite a deal being reached between the government and several trucker groups president michel tema has now ordered security forces to enter the. striking truck drivers for speakers to polos brazil's main roads there only allowing cars and buses to pass in what is now the fifth day of protest against the country's rising fuel prices brazil is the largest economy in latin america and highly dependent on road transport schools have shut food deliveries have halted and markets a close to running out of perishable goods. by the same boat i normally distribute one hundred tonnes of iron just today but now we have no oranges and the trucks are parked in the road eight trucks parks everything is stopped and you can't pay for

it will wind down its iran operations germany's biggest insurer its preparing to wrap up their two siemens has said there will be no new deals with iran and french oil and gas company to it will pull out of a multi-billion gas project if it can't get an exception tells departure would be especially painful for iran the iranian government had hoped the scale of the project would embolden other international companies to invest there for many companies the e.u. blocking statute poses a dilemma they could either stay in iran and risk their u.s. operations and possibly financing or they could leave iran and face penalties under the blocking regulations and a man on a wall street yes quote is standing by for us in new york of course yeah and it seems that with this statute europe is attempting to give up the red card will he be cowed by that whatsoever. well it really would surprise me if the u.s. president would be too impressed or even. reconsider we shouldn't forget why donald trump got out of the iran deal in the first place and striven by ideology and he has quite some backing here in the

siemens has said it's holding new deals with iran and french oil and gas company totalis say it will pull out of a multi-billion gas projects if it can't get exemption. toto's move would be especially painful for iran. the iranian government had hoped the scale of the project would embolden other international businesses to come and invest in the country. in twenty fourteen a bus full of mexican students was attacked by police. six of the students were killed and forty three others disappeared without a trace. since then investigators have determined that the attackers used heckler and koch handguns. proof that the german weapon makers guns landed in certain mexican states illegally. the german government gave the green light to sell to the mexican government under the condition that certain states would not receive any of the weapons critics however say that all parties involved knew that control over the distribution would be lost once the weapons and to the country. exports to countries with dubious human rights records have been profitable for a heckler and koch in the past in th

yet despite the difficulties china's huge market continues to attract in shenzhen siemens is manufacturing state of the art c.t. scan is for the chinese health care market and investing in domestic research china's technological advancement still offers plenty of opportunities. by staying business with. some claim. that's normal to what took you social worker. she's bored teenage pregnancy out of the shadows and into the spotlight and triggered a public debate on the child. now she's looking for supporters to help her improve child protection into. next on top of. the bullies at full speed. along with shining. but always on the move them up mobility today and in the future. drive it on t.w. . would have been fine for the kids to take it seriously in the world of what here's what's coming up women struck the tough. superhero women smart talks smart station in the gym rank recently in dangerous touch fellowship for mom. time for an upgrade. funded church clothes all by selling cars with no. design highlights you can make yourself. against tips and tricks that will turn your home into somethi

this is siemens. the german company really ramping up higher. four straight days of gains for the engineering juggernaut. turbines are not flying off the shelves but where it is doing well is the digital part of the business. factories need to get on that digitalization curve and siemens helps them do it. another one that is selling off significantly, burberry. last three days in terms of the chart and where we have sunk two, it was a significant -- sunk to, it was a significant loss. why? well a key investor was selling off his 6.6% stake. of theaking some prophet, this is a stock that has done well over the last .onth -- some of the profit this is a stock that has done well over the last month. key question marks out there for the analysts. lastly, let's have a look at the other markets. i am talking turkish lira. we are significantly the highest here.s why is the lira outperforming? we are down some 13% in terms of .he turkish lira -- could that be pushing the turkish lira higher as we have seen the fallout of a stronger dollar and potential

she is with the heads of volkswagen and siemens. a long time, had nothing but high taxes. they have trade finance from the us and the us pulling out of the iran nuclear deal? yes, germany and china have had a great relationship. angela merkel has been a leader of a country in europe far longer than anyone else. she is a reliable partner. under pressure from the right to endure a fourth term. she is under pressure on issues like immigration and trade and at the same time donald trump has threatened tariffs on germany and china. they are four of the largest companies that he has identified. given the current situation, what kind of deal will she try and strike? there is a trade—off on both sides. germany has issues in terms of chinese access to the german market, especially with german technology. 0n the other hand, angela merkel wants to enjoy a healthy trading relationship with china. there is plenty to talk about there. and... she is walking a tightrope! germany is inadvertently likely to benefit to what donald trump has, as he has

resolved within the framework of the always the minsk group and one of the principles of the always siemens group is the. right to for self-determination so again like i said there's really nothing there about can we have time for just one question and it may come across as lame to you but the police indulge me we've talked every speech we've discussed the recent changes in passions appearance his recent efforts to look more like a military man despite him never having taken part in any active combat and some of the observers suggested that he deliberately tries to look like the armenian hero from those early clashes in there go on the kind of bomb month it baby they only look like an identical twins at this point even you know with the bandage on the same on the same hand is that just a coincidence or is that also a clever use of political technology because somebody accused him of trying to appeal to that militaristic or nationalistic filling on the part of many armenians many armenians do feel entitled to not go in the car back so they had an idea here they suggest in here that he is try

it will wind down its iran operations germany's biggest insurer its preparing to wrap up their two siemens has said there will be no new deals with iran and french oil and gas company to tal says it will pull out of a multi-billion gas project if it can't get an exception tells departure would be especially painful for iran the iranian government had hoped the scale of the project would embolden other international companies to invest there for many companies the e.u. blocking statute poses a dilemma they could either stay in iran and risk their u.s. operations and possibly financing or they could leave iran and face penalties under the blocking regulations and donald coppa standing by in frankfurt for is done though it's vague and difficult to enforce so will this blocking start should be a relief for european companies to protect their investments or is it just an empty threat forcing them to comply against their will. well then let me tell you that there are at the moment here among investors lots of question marks what is blocking statute as a response to possible u.s. sanctions could

kingdom's de facto ruler is unhappy with berlin stance on riyadh's foreign policies major companies like siemens and i'm there could be hit by prince mohammed's decision. our u.s. president donald trump is hinting at next month's summit with north korean leader kim jong un could still go ahead this is only one day after trump canceled the planned june twelfth meeting in singapore claiming pyongyang is quote open hostility the apparent change of heart followed a statement from north korea saying it remained open to talks at least one person is dead in oman after cyclon makulu made landfall on the arabian peninsula police say the first confirmed victim was a twelve year old schoolgirl around forty people are still missing drenched the usually arid oman and neighboring yemen with rain and winds peaking at two hundred kilometers per hour. as to football now and to european soccer's most anticipated clash the champions league final. is with us to preview the big match across its real madrid versus liverpool tonight is this match up fitting for the finale of european football season say so and no doub

the largest ipo in europe so far this year was siemens raising 5$5.2 billion in frankfurt.don has seen two of the largest tech listings in 2018. the biggest was avast which raised over 8$800 million joining me to discuss the ipo outlook is our guest, and arjun kharpal as well. speaking about the european ipo landscape. it looks like the numbers are up on a yearly basis but that was boosted by those mega ipos i mentioned. what does it look like when you take those two deals out of the question >> overall the markets are favorable now. the appetite for liquidity is there. the appetite for investment is there. the challenge is that there are only so many large companies that can list. so from that perspective the challenge of the ipo market is how do you list a smaller or medium size company. that's a reflection, a company like this will always find a strong market, whether locally or internationally but listing the small and medium sized companies is a challenge >>> wanted to touch on the tech side of the equation here. we've seen a lot of big tech companies grow in europe, i

a few worth noting, et al., siemens, airbus, and they need to look at whether they can go ahead withey have in place, or will they try to get exemptions somehow from the u.s.? mark: there are exemptions, grandfather clauses, but you risk working the u.s. and having access to the world's greatest economy. and companies tend to err on the side of caution and try to avoid running afoul of u.s. sanctions in any way, shape, or form. i imagine they would do so in this case. you have european commission officials saying they will do their best to try and protect european companies that have outstanding business in iran. it remains to be seen how they could possibly do that. with that be some sort of negotiation for exemptions with the u.s.? that is the thing to watch for now. stephanie, what companies are particularly gathering and meeting on strategy here? >> like i said, total has one of the biggest outstanding contracts. they are looking very carefully at their position and how they will proceed from there. siemens is another company that comes to mind that has outstanding contracts and

siemens says there will be no new deals with iran. and a french coveney says it will pull out of a multibillion-dollar gas project if it cannot get an exception. the departure would be especially painful for iran. the government hoped to the scale of the project would embolden other international companies to invest there. for many companies, the eu blocking statue poses a dilemma. they could either stay in iraq and risk u.s. operations and finance income or they could leave i met and face eu penalties under the blocking regulations. helena: on wall street, jens korte is standing by in new york. it seems that with this statute, europe is attempting to give trump the red card. will he be cowed by that whatsoever? jens: well, it really would surprise me if the u.s. president would be to impress or even would reconsider -- you shouldn't forget why donald trump got out of the iran deal in the first place. it is driven by geology, and yes quite some test driven by ideology, and he has quite some backing in the united states by conservative

gave almost no attention to the announcement and those who did cover it pointed out what they called siemens pro russia stance because let's face it in today's climate being pro russia means you're on reliable something else we saw this week was the u.k. national security advisor disclosing the fact that no suspects have been identified in the poisoning but given the fact that the case seems to be based on the assumption of guilty until proven innocent many outlets ran that statement alongside the line that police were urgently reviewing the security of other defective russian spies in the country once again implying moscow's guilt despite a lack of even one suspect after two months and well clearly none of these details are enough to prove russia's innocence at the same time nothing we've seen or heard up till now is enough to prove it's guilt either well russia says the revelation by the czech president undermines that london's case but in a statement to wate the british foreign office were painted its claims that most go only russia had the technical means operation experience and motive