largest auto company in the world, vw, i know you had a great relationship with lamborghini which isremarkable place and they use you extensively, now it extends all the way to the top >> you know that volkswagen group is one of the best companies in the world you epgs inned one of their great brands i think you have been to lamborghini. stefano, ducati, the motorcycle, audi, the mainstream of the company. porsche, they have bentley they have so many amazing brands but they need to tie it all together this is a moment in time when ever company has to have a single source of truth for their customers. they need to know who their customers are. and they need to develop a trusted profile for those customers so they can build a one on one path, a jurisprudency. appropriate for volkswagen group. they have about a dozen brands so they can all be integrated into one customer relationship that's the power of sales force, that's the power of sales force and vw group together. >> vw's problem with diesel engines, all behind them, they are doing fine. >> i am excited about working with necks ge

alix: ford will build battery cars on vw's platform, and vw will invest $2.6 billion in arco ai. >> ites sense for big companies to share some of the effort. it makes companies faster and more efficient. alix: volkswagen and its chinese partner are investing more than $4.4 billion to rev up production. >> the goal is to have the markets scaled up and allow the group of companies to get technology that may give them a competitive advantage for a few years versus trying to do it alone. david: for more, we welcome bloomberg daybreak and commodities edge anchor alix steel. you've worked hard on this. alix: it was two plus years. david: all of the things we heard, the thing i heard was bumpy. pompey may understate what the carmaker -- bumpy may understate what the carmakers are going through. alix: you actually did some of those interviews. companies are losing billions of dollars as they are forced to pivot and make these huge projections. they are not profitable yet. that could be a tough spot to be in. david: it feels a little like field of dreams. it is not like their people lining arou

does that justify the gap between it and vw?al: the technology tesla is using can easily be replicated by other automakers. it is being replicated by other automakers. they don't have some amazing secret sauce. there is an issue of timing. we have this big focus on the environment shifting to ev. line,has the best product yes. german and japanese manufacturers are coming up with a whole pipeline of cars i was and become available in the next year or two. we are in the sweet spot for deke interest from regulators. the availability is more from the tesla side. in a year the market will be floode with electric cars and reality will hit about he was the bus fundamental -- best fundamental. vonnie: what is your outlook for the year for european banks? we got some good news with tesla reporting earnings. rally bond-wise. bilal: i think european banks will probably be better this year than last year. that is premised more than anything else on a growth recovery. last year, european growth was quite weak. coming into the year it was inc

this guy has a vw. you drive a vw. you know it's you. he just laughed. no, monkey. of course not.> you didn't think it either? >> no. >> you were teasing him? >> i was teasing him. >> did you ever ask ted, are you concerned about the similarities? >> in the very beginning i asked him, i said, did you read this? do you know what they're saying? there are so many things here that people are going to be looking at you. kind of making a joke out of it. but once i started to worry, like, could this be true, i didn't feel safe bringing it up. i didn't want him to know what i was thinking. >> so you did feel fear? >> well, i did. it wasn't like i was afraid of him. i was kind of afraid of my own brain just going over and over this. >> bundy realized that if he wanted to keep killing, he was going to have to go somewhere where there was no investigation. >> he has the presence of mind to move from the washington area to utah. >> he used the excuse of going to the utah law school. he gave liz the option of going with him. but he was probably delighted when she said, no, i want to stay in s

vw hl at this stage, has stopped short of declaring a global pandemic.great concern in china but it hasn't spread rapidly so far outside china. in fa ct, rapidly so far outside china. in fact, the chief medical officer for england, said in a briefing by saying as long as it stays like that, other countries including uk with nhs very well prepared, should be able to deal with a few dozen cases. if it turns into a pandemic, and spreads widely into a number of health care systems may be without adequate measures to contain it, thatis adequate measures to contain it, that is when it becomes a problem for everybody. he expects global travel, more people coming out and that will put more pressure on health systems. we had not at that stage yet. will it be declared a global pandemic? presumably it's not just about highly described. if is declared as such that trigger certain responses, is not how it works click yes it is moving from a pandemic in china for a medical authorities which that it is spreading rapidly and in some sense is out of control. across a num

vw want to theg federal judge overseeing the case to step aside, saying his works show a deep-seatedism. opted out of a $10 billion settlement uber a diesel emissions scandal. mustier has emerged as a leading candidate for the top job at hsbc. the board remains undecided and is still considering candidates. hsbc said it could take until august to name a new boss. for the first time in history, the royal mint is launching an exchange traded product. we bring you that story on etf iq every friday. up, we have got your morning call next. this is bloomberg. ♪ nejra: this is "bloomberg daybreak: europe." u.s. and european gauges have hit record highs in february. this week about goldman is warning markets have become too complacent. dani: this comes from peter oppenheimer who released a note clarifying his views. he things that stocks are going to have a correction to this is technically a debt of 10% or more. it is because investors are underestimating the impact of the coronavirus on earnings. he says even if this problem only affects china, there are a lot of spillover effects. iser al

this company is bigger than gm, vw, and sears combined. let's head to the asian session because some tesla suppliers mean the index has recouped its post-lunar new year losses. back to back games for the first time since the coronavirus concerned on the msci asia-pacific after big gains in the u.s. yesterday. the s&p 500 having its best day since august. you've gotutures and contradicting calls from some of the big thanks. citigroup, exiting its bullish treasuries call, but bankamerica saying we could hit a 125 handle in the first half of the year. thedeath toll of coronavirus is nearing 500 with more than 24,300 confirmed cases. the world health organization says the virus hasn't shown much mutation yet or caused a pandemic. it added the bulk of the cases remain in the chinese province. preparing for what it sees as an impending pandemic and more cases outside china continue to emerge. hong kong authorities are keeping 1800 passengers and crew members detained on a cruise ship. japan confirmed 10 people on a cruise ship tested positive wh

vw is the world's largest automaker. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm viviana. this is bloomberg. vonnie: thank you. we are seeing a nice bounce again today. the s&p up 1.4%. industry groups leading again, the autos and consumer durables. the dow up 1.5%, and the nasdaq up 1.4%. a quieter vix as well today. this is bloomberg. ♪ guy: from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." let's get straight to our guest, jack janasiewicz. he joins us from natixis advisors, senior portfolio strategist. what do you do in an environment like this where you have so many potential challenges to this market rally, and yet we are seeing stocks and indices up 1.5% today? jack: i think the biggest problem we run into is the markets are certainly going to be subject to a lot of the headlines. one of the things we have been stressing to our clients for over a year now, you ca

we have a world of luxury products which are dominated by the german automakers like gm and vw.id is a luxury ev company and will compete with core competitors, which are the german companies, the cities s class is our core competitor -- mercedes s class is our core competitor car. there is room to just decide tesla. alix: part of the issue with the transition has been money. automakers are pouring money into this, billions. it is not yet profitable for them, even though battery prices are coming down. are you going to need more money to make all of this happen? peter: well, we've got great funding in place. we are in a healthy financial place for the start of production. to accelerateunds the growth of the company because we have a window of opportunity for the next few years. we want to accelerate our growth. we will need more capital to do that and want to accelerate the growth of a sustainable mobility to the world and right now, that is what mankind needs, a widespread adoption of renewable, sustainable mobility through renewable sources. some numbers put on how much more y

market value of tesla and white billion.t $160 as compared to the combined market value of ford, gm, and vw $200 billion. the electric vehicle carmaker is worth almost the three of those old carmakers combined. that is your stock of the hour. guy: thank you very much, indeed. let's give you a shareprice story when it comes to tesla, actually down 14% now. as abigail says, the stock has been upside on the parabolic over the last few sessions. today at a $700 handle. maybe an opportunity for some of those shorts that have been so squeezed get out. this is bloomberg. ♪ guy: from london, i'm gone thompson -- on guy johnson. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." time for futures in focus. alan -- joining me as cme.knuckman from the what is the market telling us? finally seeing some firmness. the interest rates and stock market have done very well. you have seen the crude oil market overshoot on the downside, but simply, we are at the $50 level. we've been between $50 and $60 for almost all of the less 52 weeks. let's see where we are on a weekly basis, but i think

at that heavy traffic on north 85, it'sa long stretch phones. 47 minutes from san jose to mountain vw daria thanks a lot was for oakland's former police chief anne kirkpatrick as she said goodbyto fellow officers. >>i'm so sad tobe leaving and i didn't want to go. >>kirkpatri was abruptly fired by the police coission and the mayor lasthursday as chief of police who was sted without cause. kirktrick has alleged that one reason is because she refused to fix tickets for police commissioner, the ad of the oakland police officers association is worry about what message. this sendto any future job candidates. the mayor's office says kirkpatrick service to oakland deserves the gratitude and appreciation that members from the department showed her. take a look at this massive flames burning overght at the marathon petroleum corporation refinery in carson california that refinery is the biggest one along the west coastand processes crude oil from the san joquin valley and los angeles basin. an explosion went off. before the fi started a burning in a cooling tower. firefighters don't know yet w

we hung out for about an hour and talked to 30 would be voters and think th vw diner for what'n the sample0 p.m. here at local time. in other news today, royal caribbean cruise ship leaving from new jersey moments ago after it was docked for days due to the coronavirus concerns with the cdc. they gave the all clear once for hospitals that were passe passes were hospitalized working from negative. and another cruise ship quarantine off the coast of japan. that country may test every person on board. over the weekend to come at the coronavirus killed nearly 100 people in china in just one day making it the deadliest day since the outbreak started. so far, virus has killed more than 900 including an american man living in china and nearly 41,000 have been infected around the world. another alert, fox news alert in new york, they've carried out two assassination attempts on new york city officer is now facing a multiple attempted murder charges. according to investigators he fired point-blank at a police precinct inside of the box. two officers were hurt and both are out of the hospital. inves

first foreign manufacturer set up shop in the united states in a surprisingly research in the book was vw. 1949, four years after world war ii and they had imported a grand total of three vehicles. today, more people are employed by fine marks of automobiles. we have a truly global supply chain. we i visited one company and puebla, mexico where they make a shock absorbent brake pads. it's one of the reasons, from this globalized supply chain that we have saved the american auto industry. i don't know about you, but i remember many a car one is growing up the doors didn't fit well, the windows lease, it used to sputter a little bit after you turn the engine off for a little bit it just kept going on until stopped. as a result we created lemon laws. with the japanese competition in the 80s, we improved the competition made us chain up, get our cars better, and by this century american cars are as good as anything else. it is routine for cars to run over 100,000 miles. that was certainly not the case when many of us were growing up. after three or four years you had to trade in your car. so

last year honda, ford, volkswagen and vw reach an agreement with the state to -- some worried that thiscould potentially limit consumer choice and now the department says automakers did not violate any laws. california to move ahead with tighter admission standards. california governor gavin newsom said in a statement that this is a big loss for the president and his weaponization of federal agencies and a victory for anyone who cares about the rule of law and clean air. >>> researchers at san jose state university say they have proof now that climate change education reduces individual carbon emissions. is the first such long-term study tracking all of that. kpix 5's len ramirez has more. >> reporter: the big impact of the study is it puts some numbers behind the professors here at san jose state already suspected, that the more people learn about climate change the more they are willing to change their habits. students at san jose state say they first started learning about climate change are what was called global warming when they were in middle school. >> starting as a kid i think

senator sanders, i will let you go last because i know yoyour vw on t this., i'll start with mayor bloomberg. bloomberg: whatever the rules are, they should be followed. if they have a process, which i --ieve they do, everybody >> you want the convention to work as well. warren: that means people have the delegates that are pledged to them and they keep those delegates until -- coax the leading person? should they be the nominee? biden: p play by the rules. >> yes or no, leading person with thehe delegates, should thy be the nominee or not? biden: no, let the process work its way out. mayor buttigieg? >>mayor buttigieg? buttigieg: not necessarily. not until there's a majority. sanders: well, the process includes 500 super-delegates on the second ballot. so i think that the will o of te people should prevail, yes. amy: katrina vanden heuvel, explain the brokered convention and what bernrnie sandeders was saying and what the other candidates were saying. >> one reason the nation is holding a debate this coming sandersebruary 24, versus warren, sanders and warre

i was going to say i could arrange something vw don't think i can do it three weeks. >> in massachusetts i can say i think is a make things happen. >> yes, it's not really a contest state anyway, but i guess for fund-raising and staff it's useful. >> no, but is not a contested state in the final but i think as a governor canadian contest in the primary, i'm certain about that, but my two top states, super tuesday is interesting because it's 14 states including massachusetts, vermont, colorado and california in all of which i've spent time and new mexico and vermont are probably my top targets their, but we recently spent time in colorado and they are bill world friendly. my kind of politics, so that will have our full attention between the new hampshire primary and super tuesday. >> your editorial in the globe this morning? >> i didn't see the editorial. >> they said that the iowa new hampshire population -- >> i believe iowa who its own devices but the thing about new hampshire, it does not matter whether it is white or black or purple, these are the traditions the buildup in the state.

. -- vw combines. -- combined. speak to someone who has been buying credit default swaps. , where he is daniel is the cio at asgard credit fund. big of a position do you have on tesla. how big a bet are you putting on this. daniel: we have 23% of our portfolio short in tesla. it's interesting, everyone has an opinion about tesla. the markets are very segmented. the stock could be good in the credit could be bad. sometimes, the markets are priced back urgently. we think the stock has increased quite a lot. credit in tesla has become quite expensive. we are taking on long positions in other names and then shorting more expensive names. shorter tesla credit at the moment is not very risky. matt: can you explain the mechanics of this trade? you are saying to short tesla but are you long cds? how does the trade look? daniel: that's a good question. if you want to short tesla at the moment, it is risky. we are short on the cds on tesla. the cds on the capital part of the structure, there is limited upside potential and h

. -- we saw onam your screens that vw and tesla are opening production in china again.anstrial production, we tie that through to the companies that are participating in that supply chain. it tends to be the companies that go down the list that adjust earnings down. results from companies around the region which will be this month and next month, you will see earnings forecasts come down. the reasons is a correlation -- are a correlation between forecasts and share pricing. what we saw at the beginning of the year was -- is probably less than the beginning of january. >>>> why are asian equities rebounding so soon? the sars, during outbreak in 2000 three, we did not see the index bottoming out until the case is happy. -- cases had peaked. jim: there are another couple of charts that ever strategists put strategist put together in singapore. of peak was on the fifth february. the data he gave me suggested that we are around 2.5 thousand cases as of yesterday. was 4000 on the fifth of february. the cases have come down. i think the boredom threshold of people is much lowe

if you look at the software -- vw, they are just getting into this for the first time.ets the model. their lead is really incredible. we have been surprised that otter -- other automakers have not caught up. >> just a thought on your recent tweet about elon musk. do you believe that tesla might be building a plant there? tasha: i think that is a possibility. we think that tesla is in a position where they should spend as much money as possible getting more vehicles on the road. for autonomous driving, that will be very good for collecting data for them. a writing --nch rideshare service before autonomous driving. scaredre uber, i'd be that tesla made this announcement. >> what is the ability of texas this -- tesla to make company. what is the rate that they can build those new factories? does that get shorter and shorter? >> they said that they learn from their experience moving from the u.s. to shanghai. if you look at per learn, i think china went up in record time. berlin could take a little learned from the lessons they had scaling over the years. musk says this wil

vw cites limited travel for employees and the extended break for the lunar new year.n days until february 17. this except for a plant in shanghai that will resume work on monday. airbus is in talks to buy a stake in a jetline program according to people close to the company. announcedent can be this week. they will invest more than $2 -- $2 billion. paul: ghb is in talks to relations of copper concentrate amid shutdowns because of the coronavirus outbreak. ony may be given flexibility deliveries to avoid force majeure. there have been delays because of the virus. that is it from "bloomberg markets: asia." i am paul allen. haslinda: i am haslinda amin. " isbreak middle east is next. this is bloomberg. ♪ >> this is bloomberg daybreak: asia middle east. china sets aside $10 billion to control the coronavirus as deaths top 900. the world health organization -- past the briefly falls $50 a barrel mark. that as hopes for an extraordinary opec plus meeting feign. stocks falling for a third straight session. the arab world dallas back criticism of president trump's middle

vw is pulling forward their major programs. you can look at productivity across the automotive oem.o manufacturing to allow both bmw and daimler to be competitive. i personally think we need to be cautious on tesla at these levels. alix: how do you understand the parabolic move? how much of it is stepping investors leave it in that 10 year story that they are skeptical about versus a straight up shortcoming and how much more shorts are in the market? almost everybody has been stopped out on their short, and if they have not it is a head wind on their overall performance for this year. this move in the last couple of byths was first analyzed frothy enthusiasm for china, the idea of the incremental 150,000 units out of the shanghai facility this year. i do not see that as achievable. i think that is unnecessarily aggressive. he hide that, what we had is momentum in retail and the fear of missing out. --y of the large firms technical traders can trade quite well. momentum,rgely strictly momentum, and those trying to put a basis around this are saying $30 in earnings in 2022, 2023. that

finally, it requires an increase in -- vw l's, victim witness liaisons across all the services and in essence, the services are directed to fill all their shortages so there may be allocations out there that aren't filled for one reason or the other and services are required to fill their shortages by 19 december 2020. next, is section 540 see that requires the secretary of defense to establish a policy to ensure timely disposition of sexual assault prosecution decisions. most importantly, a decision not to prosecute a particular case and so the that policy is required by june 2020 and again designed to ensure disposition timely of the prosecutable related, not prosecutable but sexually related offenses. the next three sections that i'd like to address address training and so these three provisions are statutory provisions that direct the department of defense and conducts training. the first is to initial disposition of authorities. ida's, statute requires specific training for initial disposition of authorities and those are the authorities that are established in april 2012 withhol

vw sites limited travel for employees and the extended break for lunar new year.d production until february 17. except for the plant in shanghai with will resume monday. most of the volkswagen production will resume monday stay -- resume monday. air -- we have been told negotiations are at an advanced stage and the agreement could be announced this week. bombardierr and -- invested money in this before giving it up to another program. more still toy come next hour on bloomberg markets asia. we will talk to the aapa director general about how the coronavirus is affecting the aviation sector. we areet a look at how trading on the markets. we have been underway in new zealand for almost two hours now. decline. continuing to it posted losses on friday, now off .75%. the kiwi dollar holding steady, 6405 -- $64.05. we are expecting home sales numbers out of new zealand this week. sydney futures pulling up. we have got the open in a little over three minutes. pointing higher by slightly more than .1%. the aussie dollar back from the $66 handle. that is it for the first h

year, the point is the stock should be growing given where the valuation is, 500 cars sold this year, vw over 10,000, so if the revenues are down significantly, the volumes are down significantly which you think they will, reality will be put back into the stock, the stock will fall. stuart: look, since you said it bitcoin on wheels, the stock is up 40% and those people who followed your advice bet against tesla short of that thing, they've lost 12 billion. >> right. stuart: you must be under a little pressure. >> we are under a lot of pressure. stuart: yes, you are. >> last year -- last year sales northway netherlands are down. people are excited about stocks in general, tesla is the amazon of 2020, keep in mind, over the course of 2000, 2003 amazon fell 90%, when reality sets in and teslas numbers come out, i think you will get downside in the stock. stuart: are you suggesting that, in fact, tesla is the amazon of the future? >> no, i'm not. amazon makes money and tesla has been in business and not making money. car business is different than technology. you will see that when they rep

worry other countries have to start stepping up, so their businesses don't go out of base i don't want vw to be in trouble because the germans continue to hoard their cash i want the chinese to sell their treasuries and i want steve mnuchin to have a behind the scenes conference call and come out and say listen, other countries are doing the right thing. if they're not, we're going to urge them toand i think that w do have to worry about the business of other countries. are you not worried about a buyer? >> no, listen, a lot of this is a result of concerns about slowdowns in economic activity in other countries of course with china, which by the way we don't know exactly what the damage has been there >> they have $1 trillion in treasury what are they doing? they have an unbelievable win. are they not savvy at all? i keep hearing about all these institutions let's talk about -- the idea the chinese stock market barely lost anything -- >> shares were up for the week yesterday. >> my stepson is a great chinese scholar. you have to register with the government to sell what is that call like

war to make investments of capital and hiring, they will be on the hill next monday making the rounds vw eckstein from ohio issued a earnings warning, the sole supplier of nuclear reactors for navy ships because of that cut to the virginia class program. lastly is a punch in the gut to the combatant commanders. in the last few days we've had general walters of european command talk about a 50% increase in russian submarine control operation, we had woody lewis from the u.s. second fleet talk about the ever increasing number of submarines, admiral davis saying his requirement is met by slightly only 50% of what i've asked for. again, this budget fails the test in terms of a national defense strategy which is focused on a near. commander firscompetitors.you dt like this anytime soon. just for the record, we are 52 attack submarines today with the retirement of los angeles class submarines which will accelerate over the next four or five years, that fleet will shrink to 44 subs. your budget keeps us in that trough into the 20 and 30s. again, a devic defines any anals with the defense strate

apparently in terms of the automotive factories, more of them on the edge of the city, vw, they are resuminge of spread? robin, thank you for that. we will bring you the latest on the coronavirus through the morning. it is one of those days when we are trying to keep in touch with what is happening with the weather here, carol will be bringing us the latest on storm ciara, because there are a few warnings, a number of weather warnings in place across the uk this morning after a hectic weekend. lots of travel disruption as well. the developing story with the coronavirus. and of course we are trying to stay across what is happening at the oscars after party as well. in other news, sinn fein has described island plasma general election is a big statement of change after it made strong gains in the result so far. the nationalist party secured murder first choice votes tha n party secured murder first choice votes than either fine gael or fianna fail, which have led irish governments for decades. our ireland correspondent chris page joins us now from dublin. chris, is ireland heading for a coalit

this is according to private resources, because of private will name a vw successor in the coming months also a reshuffle at the board of daimler, and there is a lot going on in the banking sector. leaving ubsecutive last week. is there a risk for a sector? i don't know if you have people that can be very able, but it is something that we should keep an eye out on, in terms of valuations and markets? paolo: changes have already happened. nothing new about it. i think that the normal tenure executives is around four years, so i would not be surprised if there are many changes. and if company's have effective succession planning, i don't see many problems of changing at the top. francine: thank you so much for joining us. paolo scaroni, executive at rothschild group. miss our don't exclusive interview with axel weber, the bank's chair come on the new ubs chief executive. we are talking with a lot of banking executives today to understand their business models, their concerns, and the revenue streams rate i am very excited to speak with the ubs chair about changes at the top. there is quite