not like the scale of takata, manageable.a fair amount of cash on its books and generate profits. the theory is, it could be something like $1 billion, which would be a bad year for kobe steel, but would not put it in dire straits. not heard of any kind of safety issues just yet, either. what does it say about the state of play when it comes to corporate governance in japan? just when you think about how japan may have turned a corner on this, you see a headline again from another major japanese manufacturer. is the system still broken? brian: the japanese have an expression that goes, put a lid on smelly things, or cover up the problems. it is fair to say in recent years, a lot of lids have been blown off a lot of smelly problems. we had government and accounting scandals. we had product safety at takata. we had data falsification problems that toyota tire and rubber. and now, kobe steel. there are a lot of these issues. ways.n spin it intwo you could say it is bad news because we have so many of these problems. or you could

you can see the item reports on takata searching "sudden impact." that was the investigation talking about the replacements were going to have problems as >> funchess seems to rel lay embrace the physicality of the routes and get extra yards. >> it is funny to hear a female talk about routes. funny. alison: a lot of people are talking about this. quarterback cam newton is getting criticism for the comments. nancy: they were directed at the female sports reporter and he has lost one sponsorship. jonathan: he said it's funny listening to a female. if an athlete cannot figure out mens and women cover all type of sports. sad really. are you still a fan of this guy? go to wjla.com/votenow to weigh in. lindsey mastis is joining us now. social media blew up after this. lindsey: yeah. it is continuing, too. people are commenting, commenting and commenting. he is one of the celebrity spokesman for the dannon oikos they rereesed a statement on twit -- they released a statement on twitter -- the female reporter spoke out on twitter and she writes -- i don't th

important consumer information, the fallout over takata airbags continues again.ew recall issued this morning. >>> and holiday hiring is in full swing. the positions kohl's is looking to fill in the bay area and how you can land a job. >>> plus, drone view 7 gives us an incredible look over the embarcadero in san francisco. you know it's fleet week. more traffic, more people, more fun. gorgeous blue skies in this picture. perfect for those blue angels test flights today. meteorologist mike nicco has >>> breaking news out of sacramento. it's official, governor brown just signed a bill making california a sanctuary state. the landmark legislation expands protections for undocumented immigrants. the governor issued this statement, it says "this bill strikes a balance that will protect public safety, while bringing a measure of comfort to families who are now living in fear every day." the abc 7 news app sent out this push alert moments ago alerting users to this breaking news story, in fact, that's how i learned about it as well. i went to the story. you can be the f

many futures are in question here, such as takata going under.e fate, but it could get government and private sector support. it is just too hard to say. we're just the support. it is just too hard to say. we'rejust the beginning of support. it is just too hard to say. we're just the beginning of the whole process and nowhere near being able to give an accurate forecast. all right, yuichiro nakajima, thank you for your time. now let's brief you some other business stories. puerto rico's power authority has cancelled a controversial contract to rebuild the us territory's power grid. the $300 million contract had been handed to a small montana—based company, without open bidding — a move that created uproar. whitefish energy had only two full—time staff when it won the massive deal. petrochina is due to report third—quarter earnings later on monday. the chinese state—owned energy company has lost $800 billion in market value since it first started trading 10 years ago. it's been hit by a huge decline in the price of oil over the past decade, and a

without inspecting them the kobe scandal is the latest to hit corporate japan faulty abbots made by takata problems at the largest safety recall in history of the auto industry in june a japanese company has filed for bankruptcy misandry called one point two million vehicles last week after admitting unqualified stuff carried out factory inspections. the scandals are seen by many as a further blow to japan's reputation for quality manufacturing that reputation has allowed japanese companies to charge higher prices compact to cheaper compasses such as china not all analysts think the scandal is a disaster for japanese brands japan tends to have a lot of over spec right you know they really if you want to have the las three percent of perfection you have to go to a japanese company because they're the only ones doing that while everybody else you know whether it's korea whether it's germany whether it's india you know operates on a minimum viable standard kobe still said the misconduct involved dozens of employees in as many as four factories and possibly going back ten years the full financ

moody's thing this data scandal could be costlier than the takata recall.ian telco going to take over the group and its 40 million customers in a merger. seeing korean cosmetic stocks rally in seoul after we saw korea and china continued their currency swap deal. a sign that relationships between those countries might be on the improve. manus. manus: julia, thank you very much. juliette saly in singapore. mixed messages came out of the e.u.. the brexit negotiator, michel barnier, standing next to his counterpart, david davis, declared the talks were deadloc ked. michelle barnier seeking a transition deal with in the u.k.. here is what it did with the pound. you saw the moment of deadlock knocked the pound, and then you had the moment of reprieve overnight with the suggestion that maybe it was possible that barnier should -- could prefer a transition deal. me now is a fund manager. welcome. good morning. >> good morning. manus: so, up we go by half a percent. knocked and rolled around. this is going to be a long and bumpy road to whatever kind of deal we get

frod at every place in the united states and thrown into failed products like the gas can and the takata a there's 14,000 of these x-light and terminals all around the country including in the state's surrounding dc. the manufacturer of the x-light is a company called lindsay in nebraska and they stand by the safety of this product and although he's in tennessee -- they have began removing these, the federal highway administration in washington which could de-certify these products have found no notable concerns with them so they remain certified for use and states around the country. reporting live on u.s. route 50 in prince george's maryland, scott broom, wusa9. >> thank you, scott. >>> officials in maryland said they're aware of the x-light controversy, but have no -- they haven't seen unusual circumstances related to them. virginia, west virginia, use those end terminals. >> the battle over the renaming of fairfax county high school, a fairfax county high school could come to a close. steward high is displayed for tomorrow evening. four school board members say they want to call the

they have had issues with takata and other companies that have and nobody problems, says anything becauseed upon in japan. japanese authorities, if you talk to people at the ministry of finance or bank of japan, they are since it of about this, and there -- they are sensitive about this, and there has been a campaign to improve corporate governance in japan. you have seen authorities adopt a number of corporate government standards. -- governance standards. agoe were problems 20 years . there has been a steady improvement. is it perfect today? obviously it is not, but by an order of magnitude, it is much better than it was in times past. i was going to ask you about china and whether you see any bubble in stocks or the housing market, but during the break we had an interesting conversation where you said you don't the many bubbles anywhere. explain more. bob: first, how do you define a bubble? typically when you have a market bubble -- this refers to the graph you showed earlier on. bybles are characterized high levels of investor leverage, bank leverage, corporate leverage. we saw that i

without inspecting them the kobe scandal is the latest to hit corporate japan faulty ags made by takata problems at the largest safety recall in history of the auto industry in june a japanese company has filed for bankruptcy misandry called one point two million vehicles last week after admitting unqualified stuff carried out factory inspections. the scandals are seen by many as a further blow to japan's reputation for quality manufacturing that reputation has allowed japanese companies to charge higher prices compact to cheaper competitors such as china not all analysts think the scandal is a disaster for japanese brands japan tends to have a lot of over spec right you know they really if you want to have the last three percent of perfection you have to go to a japanese company because they're the only ones doing that while everybody else you know whether it's korea whether it's germany whether it's india you know operates on a minimum viable standard kobe still said the misconduct involved dozens of employees in as many as four factories and possibly going back ten years the full fin

in twenty fifteen the airbag company takata apologize for deaths and injuries caused by defective airbags. a fault that cost sixteen people their lives. in spain the government in madrid warned that it could lower its growth forecast for twenty eighteen. if catalonia continues to seek independence. well deputy prime minister sir i assigns the santa maria backed her statement by saying that ratings agency standard and poor's. issued its own warning about recession for the region. several companies have already moved their headquarters away from catalonia. this could put pressure on catalan leader carles puigdemont who has been given a thursday deadline by madrid to give up on his push for secessio. but the woman them breeders have him that's that configured efficacy on. on our lives today the ratingss agencies have warned that political and economic instability could harm the catalan economy you know i declined that if companies continue to leave the regio. it could end up causing a recession in catalonia which would undoubtedly affect the overall gdp growth is though the pro tentative rep

following a string of scandals from manufacturers including airbag supplier takata, and car—maker nissan steel is now under fire. japan's third largest steel—maker has admitted it falsified data over the strength of some of its aluminium and copper products. it's a big deal because kobe steel's products are used in things like cars, aircraft and bullet trains. and it's affecting companies all over the world, multinationals like boeing, toyota and nissan among others are all now checking the safety of their products after it emerged they used metals supplied by kobe. leisha santorelli is in singapore. tell us more because as today has progressed the story has snowballed, hasn't it? that's right. the problems keep getting uncovered sally and scandals are expensive and this is proving to be a big one. shares plunged by more than 20% in tokyo. yesterday they plunged by 20%. injust two tokyo. yesterday they plunged by 20%. in just two days we have seen more than a third of kobe steel's value wiped out. kobe steel is japan's third biggest steel—maker. their products are used in aircraft, bulle

without inspecting them the kobe scandal is the latest to hit corporate japan faulty abbots made by takata problems at the largest safety recall in history of the auto industry in june a japanese company has filed for bankruptcy misandry called one point two million vehicles last week off to admitting unqualified stuff carried out factory inspections. the scandals are seen by many as a further blow to japan's reputation for quality manufacturing that reputation has allowed japanese companies to charge higher prices compared to cheaper competitors such as china not all analysts think the scandal is a disaster for japanese brands japan to have a lot of over spec you know they really if you want to have the last three percent of perfection you have to go to a japanese company because they're the only ones doing it while everybody else you know whether it's korea whether it's germany whether it's you know operates on minimum viable standard kobe still said the misconduct involved dozens of employees in as many as four factories and possibly going back ten years the full financial impact is sti

aluminuml with some and takata with the airbags. there have been a noble -- number of scandals.y everybody is committed -- connected. everybody needs to do a study, solid job. the public is going to understand. that is the most important. >> how much of sales in japan will be affected because of the close of production and the impact on the buyer sentiment? >> in the short-term, it will have an impact. they are built to order as opposed to delivery like the u.s. thehe next few months, remainder of the fiscal year, we are confident with everything that we are doing, that we will be able to accommodate. we will be able to recover within the fiscal year. yvonne: that was the son executive -- the nissan executive speaking to stephen engle. reputation asny's a trusted supplier has been tainted with headlines from kobe steel fake data. joining us now is bloomberg news energy reporter from tokyo this morning. japanese manufacturers have this reputation for quality, but we really learned it has come with a cost. what is causing this huge pressure? issues that a few we have been looking

blown off smelly problems, accounting scandals at olympus and toshiba, product nowty problems with takataota falsifying data material used to reinforce buildings against earthquakes, and now kobe steel. this latest one of fax lanes, trains, and heavy on the minds sayonsumers you can either there is an endemic problem with lots of these issues, or you could say at least they are coming to the surface now and maybe we are on the right path with better quality control. kobe, how can they deal with this crisis? todayst of all, a report says they are looking to selloff its real estate business, and possibly other moves. one problem for kobe steel is the industry has seen consolidation and mergers which put pressure on kobe steel to huge rivals, so it branched out into other businesses, which might have seemed like a good idea the time were notify, but they able to focus on quality control and oversight because they were spread so thin. to see as selloff of assets to deal with liabilities and help it sharpen its focus on its core business. rishaad: thank you. the managing editor there in seoul,

te governance in because we've had, of course, them, nissan, takata, toshiba, olympus, just to name athere has been a failure has gone right to the top. are we getting all of this information because of abenomics inspite of abe -- in spite of abenomics? scrutiny onhat the corporate leadership definitely has been tightened. because of a combination. the regulatory oversight. also, investor oversight and also the japanese media is now empowered. don't be afraid of the big bosses in japan. go after the scandals. so it's actually good news in of the overall transparency, you know, that we're getting in japan. >> so we're seeing here that sense. working, in a the push for corporate governance reform? exactly right. you've got effectively, remember, japan, this sort of insider capitalism with the big groups controlling the flow of information, controlling the way power gets allocated here. changes in the corporate governance code , with the corporate code, basically you're moving to an open system of capitalism where and transparency is starting to come to the fore. that should ultimately b

without inspecting them the kobe scandal is the latest to hit corporate japan faulty abbots made by takata problems at the largest safety recall in history of the auto industry in june a japanese company has filed for bankruptcy misandry called one point two million vehicles last week after admitting unqualified stuff carried out factory inspections. the scandals are seen by many as a further blow to japan's reputation for quality manufacturing that reputation has allowed japanese companies to charge higher prices compared to cheaper competitors such as china not all analysts think the scandal is a disaster for japanese brands japan tends to have a lot of over spec right you know they really if you want to have the last three percent of perfection you have to go to a japanese company because they're the only ones doing that while everybody else you know whether it's korea whether it's germany whether it's india you know operates on a minimum viable standard kobe still said the misconduct involved dozens of employees in as many as four factories and possibly going back ten years the full fi

it comes on the back of other scandals, such as takata's airbags. kobe is one of the oldest companies and one of the biggest automakers like toyota. autoey are supplying other companies around the world, it will\onto japan's integrity and cause considerable consequences. >> shares of kobe steel falling for a second day, down about 15.7% as ofnow -- now. it admitted falsifying information about its other products. seemed or, powder, also to be the data was falsified for that and that was shipped to one customer. iron oreowder -- powder was shipped to other sites. we are trying to pin down which customer and that was, but some of the customer has confirmed. one of the problems for kobe steel, the steel industry has seen a lot of consolidation and mergers, which put more pressure on kobe steel to compete with huge arrivals. it branched into other businesses. one of the things we are looking to see is a selloff of assets to deal with liability and help sharpen its focus on its core businesses. of naftaurth round renegotiations begin today in washington.

these types of scandals that we are seeing, takata, the airbags, are systemic in nature.he pressure for cost-cutting, be pressure to compute in areas where facing pressure on their margins were they used to be a dominant player in china is beating them notably on the bottom level but increasingly on the top level as well. julia: made the point of the article that it was never about going to japan for products, you went for quality. if you cannot rely on either, it is an issue. megan: so many japanese manufacturers of consistently targeted behind her end of the market. -- manufacturers have consistently targeted to the end of the market. when china starts eating away at the higher value products, japan is going to be under threat from all parts of the spectrum and that is a real problem given the economic problems with the greying labor force. julia: some of the challenges are a part of the global cover story from this week. you look at google and the chief has been at the helm for 10 years. megan: i cannot think of people who know him, who have gotten to grips with who he

it comes in the back of standards lately, such as takata air bags.this has spread overseas -- we know kobe is one of the oldest companies and supplies some of the biggest automakers like nissan and toyota. if it does emerge that they have been supplying auto companies around the world, it would have a severe backlash on japan's integrity and have consequences down the road. >> shares of kobe steel falling for a second day, down about 15.7% as of now as the data scandal widens. they admitted falsifying information about another of its products but insists safety has not been compromised. brian: iron ore data was falsified and that was shipped to one customer. iron ore powder is used in a lot of machine tools and auto parts, everything from exhaust and power steering systems to camshafts. we're still trying to pin down exactly which customer that was, but so far the company has confirmed. one of the problems for kobe steel is, over the last few years, the steel industry has seen a lot of consolidation and mergers, which put more pressure on kobe steel

reporter lisa fletcher broke the story of the largest recall in american history, more than 70 million takata the replacements would fail for the same reason. lisa: do you see a recall of the replacement airbags? >> there will be a recall as sure as it is. jonathan: we interviewed whistleblowers and have been investigating. we continue to bring you the latest. >> come all the way through and hit me because part of the pitchfork went through the frame of the car and into the door. jonathan: 7 on your side also revealed hundreds of times per day across the country, with no warning and almost no reaction time, dangerous cases of flying lives, causeill accidents, and tens of thousands of injuries. we brought a whole new way of defensive driving thinking to viewers. horace: we are putting contractors to the test and noticed a big problem with the >> it's a big job. >> this is really awkward. jonathan: troubleshooter horace holmes helped you understand how to deal with contractors in your homes. in several different investigations, we put plumbers, electricians, and duct cleaners to the test come a

the surge follows high profile defects you might recall, including the takata air bag scandal and the deadly ignition switch recall in gm cars. >>> twitter and google ceos will be questioned. all companies are under scrutiny for stopping the spread of fake news. >> they face scrutiny from lawmakers, tech stocks are soaring. positive earnings announcement. there's no indication the market or users will punish the companies regardless of how the investigation turns out. scott mcgrew, once tech leaders are done in the senate, they are going to testify in the house. >> that's right. this will happen tomorrow. the house wants them. both sides are going to ask them to testify tomorrow. you are not going to see mark zuckerberg there. they are sending their top lawyer, instead. moments after congressional investigators announced they would start questioning on november 1st, facebook announced they would make the quarterly announcement the same day. that requires zuckerburg to stay home. they will show you who buys political ads and other ads on the site. the government has been pressuring fac

it comes on the back of other scandals, such as takata's airbags. was spread overseas, we know kobe is one of the oldest companies and one of the biggest automakers like nissan and toyota. if it emerges that they are supplying other auto companies around the world, it will\onto -- on japan's integrity and two cause considerable consequences. >> shares of kobe steel falling for a second day, down about 15.7% as of now. as its stake data scandal widens. it now admitted falsifying information about its other products, but insist safety has not been compromised. >> iron ore, powder, also seemed to be the data was falsified for that and that was shipped to one customer. iron ore powder was shipped to cash is used for everything from exhaust to powershift -- power steering. we are trying to pin down which customer and that was, but some of the customer has confirmed. one of the problems for kobe steel, over the past few years, the steel industry has seen a lot of consolidation and mergers, which put more pressure on kobe steel to compete with these big hu

the surge follows high profile defects, you might remember, including the takata air bag scandal. >>>g up, breaking news out of capitol hill. an indictment. >>> plus, a bay area theme park. >> get back, get back, get back. >> police asking questions about how security let this happen. >> reporter: you ever thought you overpaid for a parking ticket in san francisco? you might be right. the city might be able to pay you back. that's next. >>> we begin "today in the bay" at 5:30 with breaking news from capitol hill. paul manafort has been indicted this morning in connection with the fbi's investigation into russian meddling in our presidential election. paul manafort and his former business associate rick gates were told to surrender to authorities this morning. these are live pictures from the district court where we have cameras stationed. we'll bring dwrou latest. we'll check in with scott mcgrew in 15 minutes for the background on this story. but, paul manafort has been indicted. good morning to you. thanks for joining us. i'm laura garcia. >> i'm marcus washington. we want to look a

it comes on the back of other scandals such as takata airbags. if this were spread overseas.e of the against automakers. it will severely backlash on to japan caroline: integrity -- japan's integrity. outthan: important to point it is not clear if any of the companies have received materials relinked -- linked to the sulfide -- falsified data. general motors is part of their revenue. toyota is for percentage points part of this could found their way into many cars people are driving and into some planes people have been flying on. enda: we don't know yet, but it will certainly damage --one of japan's biggest exporting competitors is they don't have the same corporate governance. it is certainly damaging for japan. alix: we had a great gadfly peace talking about this saying i know the headlines look bad, but the amount of aluminum copper that was that is really small, 38,000 tons of aluminum. is there a reality versus the perception issue? enda: their most certainly is. the optics of it are what counts. japan prides itself on the quality of exports and manufacturing and standa

they were recalled in 2015 to replace faulty takata airbag inflaters but were replaced with identical parts. that's the news update this hour tyler is here. you're back in the house i missed you, ty. >> that's not how to do a recall, when you replace the defective part with more of the same part. >> that's exactly right. >> that would be a textbook no-no. all right, sue, it's great to be back coming up on "power lunch" student loan abuse that's what the attorney general accuses navian of doing. we will talk to the a.g. ahead. >>> and nick mcguire will join us why he thinks decker's outdoors is set to double. >>> and we taste test one of the world's most expensive cups of coffee, right up my alley. scott, back to you >> all right, ty, look forward to that. >>> straight ahead here, amazon reportedly testing its own delivery service to rival the big shoppers we'll trade amazon, fedex and u.p.s. >>> plus western digital, constellation brands and sherwin-williams are all big movers today "halftime" back right after this. >>> miss the blitz, the call of the day or unusual activity with the

takata had their own problems. one, tensis the big of millions of airbags.san came out last week and inspectors who are not been approved. -- who had not been improved. this raises questions for customers who are buying these products -- julia: and the reputational damage here and the legal costs as well. >> kobe touches on that in their statement. they feel shamed for this happening, absolutely. scarlet: the dod and the army also customers of kobe steel. the global supply chain network. thank you for giving us the much-needed perspective. let's get a check of the headlines on the first word news at this hour. mark: the story we've been following this afternoon, cattle alan's president suspended the region's push for independence today. puigdemont said it was time for dialogue but not before airing out some grievances. this is themont: first time in recent european history that there's been an electoral event amidst massive police violence against people commuting to cast their vote. mark: puigdemont added the landslide victory in the region disputed the oct

without inspecting them the kobe scandal is the latest to hit corporate japan faulty abbots made by takata problems at the largest safety recall in history of the auto industry in june a japanese company has filed for bankruptcy misandry called one point two million vehicles last week off to admitting unqualified stuff carried out factory inspections. the scandals are seen by many as a further blow to japan's reputation for quality manufacturing that reputation has allowed japanese companies to charge higher prices compact to cheaper compasses such as china not all analysts think the scandal is a disaster for japanese brands japan tends to have a lot of over spec right you know they really if you want to have the las three percent of perfection you have to go to a japanese company because they're the only ones doing that while everybody else you know whether it's korea whether it's germany whether it's india you know operates on a minimum viable standard kobe still said the misconduct involved dozens of employees in as many as four factories and possibly going back ten years the full finan

it was not going to be a takata types in area. -- type scenario.early to try to assess that. it does not seem like kobe steel is facing any kind of crisis in terms of its existence at this point. yvonne: stay with us because we are bringing in our next guest. it could follow the footsteps of other companies that have to recover after being rocket -- rocked my scandals. joining us now from tokyo is bloomberg's top-ranked analyst on kobe steel and has a rating. lasts been interesting the 48 hours area given the fact he made this reaffirmation on monday about the development we have seen that more products could be involved, it has been close to two days with a 40% drop. does this change anything about your reading? >> thank you for having me. this is not going to be the end of kobe steel. it could be the end for management, which has been promoting. it could actually result in a breakup of the company. with a 40% fall of the share price, we could expect ,hareholders to be very unhappy and we could see some lawsuits. serious governance issue at kobe s

is there any link you can draw in all of these revelations we have heard, including takata?ad from an faction japan and perception of quality in japan. the link underlying these is that we need -- this is all part of the corporate governance code supposed to be explicit with whistleblower protection. they are helping the company when they come forward. in all these cases the revelations were not brought immediately. these could have been caught much earlier in the process. case, the subaru's knowledge of these faulty inspectors seems to be happening for decades possibly. what can be done then? there should be more whistleblower protection, quicker action. i you seeing any of that change at all, even right now? >> unfortunately we have not yet seen that. weask every company meet how many whistleblower complaints they have had. 0-1 a year.y that sounds way too low a number. people are encouraged to help by coming forward, and we have not yet seen that. >> do think the current snowblower law does more harm than good? >> i think it is good. whistleblower law does more harm than

automobile regulator has asked drivers to find out if there cards are filled with faulty products from takata. >> sprint and t-mobile are putting the finishing touches on a merger likely to be announced when they report quarterly earnings by the end of the month. they will decide on an exchange ratio that will decide sprint's dilation. it has a market value of $29 billion. the report says a company will divide to include its aerospace division. ell'srs said honeyw turbochargers business will be one of the spinoffs. the venture capital arm has completed its biggest fundraising for southeast asia and india tech deals. vertex was the first institutional backer in ride hailing company grab which became one of the region's most powerful tech startups. still ahead, we will look at who may be the president's picked to lead the fed. this is bloomberg. ♪ ♪ yvonne: this is "daybreak asia." bill gross has joined a chorus of big names in business backing neel kashkari as the next head of the fed. gross told bloomberg he would be a great pick. >> i join jeffrey and this one. kashkari has great experience

this is a likely spiraling situation on the likes of toshiba or takata there in japan.tocks aren't going to open limit down, looks that way. let's get to the first word news as we're awaiting kobe steel. let's get to paul allen. paul? paul: thanks, betty, three more companies are leaving cat lone yeah as separate leaders push ahead with independence. the property company colonial their mix are drifting company from catalonia to adrid. the u.k. has been warned it must make the next move on brexit if it wants to talk trade. the european commission spoke after prime minister teresa may's earlier comments in parliament that it was the e.u.'s turn to act. dush o sides have gun a begun a fifth round of negotiations. disagreements over the divorce bill and the rights of e.u. citizens. >> this is not exactly a ballgame. you know, we will not provide comment on comment but i will remind you that there is a clear sequences to these talks. and that has been so far no solution found on step one which . the divorce proceedings so the ball is entirely in the u.k. court. paul: the yua

david: i understand you can't talk about specific stocks, but when we have had takata and nissan withsue, you do not believe that indicates some broader issue within japan? john: i don't personally, but certainly there have been some bad signs recently. the government have to look at this more carefully. alix: thank you so much, john vail. ben, thank you for joining us as well. if you have bloomberg terminal, check out tv to watch is online, clicked on charts and graphics, interact with us directly. just go to tv on your terminal. this is bloomberg. ♪ taylor: this is "bloomberg daybreak." i'm taylor riggs with your bloomberg business flash. third-quarter profit phil at the parent upper city spends. daimler's earnings were hit by fixing a mission systems from older cars. the world's biggest maker boosted r&d spending by 21% over a year ago. the world's largest metals hedge funds is accusing barclays of manipulating copper prices. red kite management says the alleged market pricing is costing millions of dollars on the london metal exchange. barclays denies the allegations. th

we know that takata airbags, tens of millions of defective airbags.lly pled guilty to criminal charges. joe: exactly, and that has hit them on the business side as well. companiesking about that are now bringing in larger questions about japan itself. kobe steel has been around for ages. nissan, subaru, the list goes on and on. it is a big deal for international supply chance, not just japanese ink bring up the function on kobe steel, and we can bring this up. if you see down the right side the big customers. if you run it on the bloomberg it will come up quickly -- clearly. mitsubishi, 5%, that is their account of kobe steel revenue. ford motor's around one half percent. we do not know whether some of the metals they falsified data on ended up at any of these companies and ended up on any of their products. i assume those companies do not know either. joe: we have spoken to a number of them. nissan says they use some of the metal for hoods, toyota hoods and rear doors. mitsubishi, rockets, regional jets and west japan railway said they use some of th