|Bid||45.44 x 124500|
|Ask||45.44 x 73800|
|Day's Range||45.39 - 45.99|
|52 Week Range||44.51 - 60.00|
|Beta (3Y Monthly)||1.29|
|PE Ratio (TTM)||6.87|
|Earnings Date||Jul 24, 2019|
|Forward Dividend & Yield||3.25 (7.16%)|
|1y Target Est||62.70|
Sweden's Volvo announced new measures to cut fixed costs by 2 billion Swedish crowns ($214 million) on Thursday, as it became the latest carmaker to warn that pricing pressure and tariffs arising from the Sino-U.S. trade war were denting profitability. Carmakers are under pressure from trade conflicts, hefty bills to develop electric and driverless cars and an overall downturn in the car industry. Volvo, which as part of China's Geely family aims to produce premium cars to rival BMW and Daimler's Mercedes-Benz, has rejigged its global production plans in an effort to blunt the impact of increased tariffs.
Goldman Sachs initiated coverage of European auto makers on Tuesday, outlining the challenges it sees them facing. It recommends selling Fiat Chrysler and Daimler.
(Bloomberg) -- A major supplier of automotive seats joined the largest luxury-car maker in cutting its earnings forecasts as weak sales in the world’s biggest markets darkens the outlook for the industry.Lear Corp. warned investors Tuesday that net sales may drop to as low as $19.8 billion this year, down from an earlier projection of as much as $21.7 billion. The supplier of seats and electrical systems followed Mercedes-Benz maker Daimler AG in dialing back its earnings outlook, saying a second-half rebound in industry production volumes may no longer be in the cards.“We now believe general macroeconomic and industry factors will continue to put pressure on sales and earnings throughout the remainder of 2019,” Ray Scott, Lear’s chief executive officer, said in a statement.Analysts have slashed estimates for auto sales this year in China, which is going through the first slump in a generation. Carmakers are cushioning declines in the U.S. by delivering more vehicles to rental companies and other fleet customers. More consumers have been getting priced out of the market by higher financing costs and automakers’ culling of slow-selling sedans from their lineups.“It is fair to say we don’t know anyone who feared that a Lear guide down could be this bad,” Chris McNally, an analyst at Evercore ISI, wrote in a report Tuesday.Lear shares opened down as much as 7.4%, the biggest intraday plunge since November 2016. The stock was down 2.9% to $131.30 as of 11 a.m. in New York.\--With assistance from Keith Naughton.To contact the reporter on this story: Kyle Lahucik in Southfield at firstname.lastname@example.orgTo contact the editors responsible for this story: Craig Trudell at email@example.com, Chester DawsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The company called out increased legal provisions for faulty Takata airbags, another increase in provisions for Mercedes-Benz diesel vehicle recalls, and a shuffling of the deck in the Mercedes-Benz Vans group as reasons for the newly lowered guidance. One of the few bright spots in the quarter will be Daimler Trucks, the maker of Freightliner and Western Star trucks.
(Bloomberg) -- Barely three weeks ago, Daimler AG dialed back profit expectations for the year. The move was seen as a housekeeping exercise to allow Chief Executive Officer Ola Kallenius to start with a clean slate.But on Friday, the Mercedes-Benz maker cut its earnings outlook again -- the fourth warning in just over a year -- suggesting an alarming degree of disarray at the world’s biggest producer of luxury cars at a time when slowing sales and huge investments in new technology are testing the industry.Daimler now sees earnings before some items falling “significantly” below last year’s level, and said second-quarter results had swung to a loss of 1.6 billion euros ($1.8 billion) from a profit of 2.6 billion euros. It blamed provisions for vehicle recalls to fix defective airbags and a need to set aside more money to deal with long-running allegations of diesel-emissions tampering.“Some call it ‘to throw in the kitchen sink,’’’ Evercore analyst Arndt Ellinghorst said in a note, referring to the practice of dumping all the bad news into a single quarter’s results. “Well, Daimler just threw in the dining room table, the fridge and the polished silver.”While issues with airbags from Japan’s Takata started years ago, involving faulty inflators that propelled deadly shrapnel during accidents, Daimler said it discovered new potential issues during laboratory tests and decided to set aside 1 billion euros for a precautionary recall. Facing criticism of a piece-meal response to its handling of the diesel allegations, the company also increased provisions by 1.6 billion euros as fallout from investigations and legal expenses looms.The shares fell as much as 4.5% in Frankfurt, before recovering most of their losses to trade 1% lower at 46.19 euros by 1:13 p.m. Insurance contracts on the company’s debt are the worst performers in the iTraxx Europe index of credit-default swaps early Friday.Aside from one-offs on airbags and diesel, Daimler warned of slower markets and troubles with the rollout of several of its models, adding to a sense of gloom for the carmaker that took the luxury sales crown from BMW AG in 2016 with an overhauled lineup of sporty sedans and sport utility vehicles.Daimler’s latest profit warning didn’t allay concern the carmaker might cut again, according to Jefferies analyst Philippe Houchois, who said its dividend was now “unsustainable” and cut expectations to just 50 cents. Daimler last year paid a reduced dividend of 3.25 euros.The more pessimistic outlook heaps pressure on Kallenius, who’s flanked by new Chief Financial Officer Harald Wilhelm, to implement proposals to cut costs and restore profitability. Investors have said the duo’s strategy remains light on details as the carmaker buckles under recurring revisions that are without precedent in the German car industry. The warning also makes uncomfortable reading for former CEO Dieter Zetsche, leading Daimler for 13 years, who’s set to segue to the supervisory board in 2021.Still, some observers said it makes sense for the new CEO to clean up the problems left over from the previous leadership before attempting to put his own imprint on the company.“It’s better to issue a profit warning now and rebase expectations before he comes up with an updated strategy later this year,” said Daniel Schwarz, an analyst at Credit Suisse.While other carmakers and their suppliers have also warned of deteriorating results, Daimler appears worse hit. BASF SE, the world’s largest chemical maker, last week fired a warning shot across industries with its reduced outlook, blaming slowing markets and the impact of the U.S.-China trade war. Returns at Daimler’s core Mercedes-Benz cars division are expected to drop to between 3% and 5%, down from 6% to 8%, it said Friday.Daimler’s latest in a string of bad news sits uncomfortably next to an announcement by Volkswagen AG and Ford Motor Co. due later Friday that’ll set a new bar on cooperation and cost reduction. The world’s biggest and sixth-largest carmakers will team up on electric cars and autonomous driving to tackle the unprecedented shifts. It’s the second win for VW’s CEO Herbert Diess, who’s making headway overcoming internal strife to overhaul the 12-brand behemoth to also list VW’s truck unit Traton SE last month.“Premium carmakers -- BMW and Audi too -- are struggling to go with the new times and wave goodbye to the glory days,” said Juergen Piper, an analyst at Bankhaus Metzler. “But no one is struggling as much as Daimler.”\--With assistance from Christoph Rauwald, Stefan Nicola and Hannah Benjamin.To contact the reporter on this story: Elisabeth Behrmann in Munich at firstname.lastname@example.orgTo contact the editors responsible for this story: Anthony Palazzo at email@example.com, Frank ConnellyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
European markets edged higher on further signs of a Federal Reserve rate cut but the DAX struggled after a damaging profit warning from German car giant Daimler.
European shares were little changed on Friday as drugmakers came under pressure on worries the U.S. government may intervene over high drug prices, while Federal Reserve chairman Jerome Powell's dovish comments helped limit losses. The pan-European STOXX 600 index ended flat but broke a five-week winning streak as regional equities failed to take advantage of the Fed's accommodative stance this week. Swiss stocks underperformed, sliding more than 1% as drugmakers including Roche Holdings, Novartis and Novo Nordisk fell more than 2%.
(Bloomberg) -- Europe’s economy got a shot in the arm on Friday with a report showing the biggest jump in industrial production in four months.Output jumped 0.9% in May from the previous month, beating the 0.2% median estimate of economists. Capital goods and consumer goods both saw strong gains.The figures follow positive national reports from the region’s largest economies -- Germany, France, Italy and Spain. All four posted increases in May, the first time that’s happened since last summer.The data, which can be volatile, may not be enough to shift the European Central Bank from its current path toward adding more monetary stimulus. The outlook is still clouded by trade tensions that have hit confidence, and forward-looking surveys, as well as comments from company executives, still offer reason for caution.BASF SE, the world’s largest chemical maker, shocked markets this week with a huge profit warning, and Germany’s car industry is still suffering from industry-related problems. On Friday, Daimler AG issued its fourth such warning in just over a year, this time blaming higher costs to deal with a recall for faulty airbags and increasing funds set aside to address allegations of emissions tampering.The European Commission on Wednesday cut its euro-area growth and inflation forecast for 2020, suggesting that the weakness that’s characterized the first half of the year will stick around.Most investors and economists have penciled in an ECB interest-rate cut by September, though some say the central bank could act as soon as this month. There’s also a chance it restarts bond purchases, having only brought the program to a close at the end of 2018.\--With assistance from Harumi Ichikura and Kristian Siedenburg.To contact the reporter on this story: Fergal O'Brien in Zurich at firstname.lastname@example.orgTo contact the editors responsible for this story: Craig Stirling at email@example.com, Zoe Schneeweiss, Paul GordonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Profit warnings are never pleasant but few are as comprehensively horrible as the one Daimler AG served up on Friday. If the German car giant’s intention was to convince the investment community that it doesn’t have a grip on its business or earnings forecasts, then well played. Mission accomplished.Usually a warning that spans product recall costs, legal issues, production delays and weak demand might be excused as “kitchen-sinking” (getting all of your bad news out at once). Ola Kaellenius took over as chief executive from Dieter Zetsche in May and a change at the top is often a good moment to reset investor expectations.But this is Daimler’s fourth profit warning in barely 12 months, and the last one came less than three weeks ago. It had already chucked out the kitchen sink; now’s it’s moved on to tearing out the plumbing. On top of the problems disclosed by Daimler in the last warning, the company has now revealed several massive new burdens on earnings, which are related chiefly to the fallout from allegations of emissions tampering in diesel cars. I wrote before about the legal risks that Daimler faces. The upshot is that the German giant made a 1.6 billion euro ($1.8 billion) operating loss in the second quarter and full-year profit is now expected to be “significantly” below last year’s. The Mercedes-Benz division will probably eke out a return on sales of just 4% this year (the midpoint of its expected range). For a premium auto manufacturer, that’s abysmal. The French mass-market carmaker Peugeot SA achieved double that recently. Oddly, Daimler shares gave up less than 1 billion euros of market value on Friday, which suggests investors were expecting more bad news. Also, some of the new problems are one-offs. Still, the fall propelled Daimler’s dividend yield – the last dividend divided by the share price – toward 7%. That’s not a sign of faith from the markets.Daimler distributed 40% of its net profit to shareholders last year, which means it paid out almost 3.5 billion euros. It’s reasonable to assume 2019’s net profit will be lower than last year and that the dividend will be too. The Bloomberg Dividend Forecast anticipates a payout of 2.65 euros a share, a cut of almost one-fifth. With Daimler’s cash flow under severe pressure, even that looks generous. To contact the author of this story: Chris Bryant at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Luxury carmaker Daimler cut its profit forecast for the fourth time in 13 months on Friday, as it set aside more money to cover a regulatory crackdown on diesel emissions and vehicle recalls related to Takata airbags. The German automaker is among a raft of blue-chip firms to issue a profit warning this week, adding to concerns about the severity of an economic slowdown, particularly in China where confidence has been hit by an ongoing trade war. The maker of Mercedes-Benz cars said it would post a second-quarter operating loss and that 2019 results would be "significantly" lower than last year, compared with its previous forecast for a broadly unchanged performance.
Daimler’s shares dropped 3 per cent in early Frankfurt trading and dragged down other European automotive stocks with the broad Stoxx 600 auto index sliding 1.4 per cent. While carmakers globally are facing a squeeze from falling sales in the US and China, Daimler has been hit particularly hard by a number of factors.
European shares were little changed in early trade on Friday, as investors parsed through China trade data that came in at market open, an indicator of global economic growth, while a profit warning from Daimler knocked down auto stocks. China's yuan-denominated exports rose 6.1% in the first half of this year from a year earlier, while imports increased 1.4%, customs data showed, which resulted in a trade surplus of 1.23 trillion yuan ($178.94 billion) for the first six months. The pan-European stocks benchmark was flat at 0712 GMT with auto stocks down 0.6%.
(Bloomberg) -- A long history of failed automotive mergers and tie-ups -- from Daimler-Chrysler, to GM-Fiat and BMW-Rover -- used to be reason to doubt that combinations or partnerships between big carmakers were a good idea.But as the world’s biggest manufacturers anticipate an age of increasingly electric, autonomous and shared vehicles, they’re increasingly becoming bedfellows.Volkswagen AG and Ford Motor Co. have scheduled a press conference in New York on Friday after months of talks about joining forces to develop self-driving and electric vehicles. Aligning with one another in the burgeoning fields would build on an existing partnership to work together on commercial vans and trucks.The expanding alliance between the world’s No. 1 and America’s No. 2 car companies is only the latest example of the auto industry giants joining forces to cope with the transformation sweeping their industry. The transition is going to be costly: Since 2010, more than $14 billion has been invested in autonomy and mobility technologies, according to BloombergNEF.“BMW and Daimler are pairing up and matching up on their autonomous-vehicle program, as are Toyota and Uber, and you’ve seen GM and Honda, and now VW and Ford,” said Mike Ramsey, an automotive consultant at Gartner Inc. “That leaves Hyundai and Kia hunting around desperately for partners. And then the remainder, like FCA and PSA.”Here’s a rundown of some of the most noteworthy tie-ups of the last few years among the world’s leading automakers:BMW-Daimler DealsBMW AG and Daimler AG vowed earlier this month to team up on developing cars capable of traversing highways without human intervention starting in 2024. While drivers will remain behind the wheel, the companies said their vehicles will be able to navigate highways and park on their own.The luxury-auto arch rivals also agreed to pour more than 1 billion euros ($1.1 billion) into the car-sharing and ride-hailing businesses they combined to form one joint venture earlier this year to compete with the likes of Uber Technologies Inc. and Lyft Inc.Fiat’s Renault FlirtationFiat Chrysler Automobiles NV -- already an Italian-American amalgam -- pursued a merger with Renault SA earlier this year, though the potential deal abruptly collapsed last month due to the French state’s intervention and concern about the implications for Renault’s existing alliance with Nissan Motor Co. and Mitsubishi Motors Corp.Still, it may be too soon to write off the idea. Renault and French Finance Minister Bruno Le Maire have said talks with Fiat Chrysler could resume once the Renault-Nissan alliance is on firmer footing. Fiat Chrysler Chairman John Elkann told Italian newspaper La Stampa this week called the attempt to merge with Renault an “act of courage.”BMW’s Other BlocsNearly two years before Fiat Chrysler’s merger proposal with Renault, the company entered a coalition led by BMW that’s creating an autonomous-vehicle platform slated to be launched in 2021. Other members of the collaboration include Intel Corp., Aptiv Plc, Continental AG and Magna International Inc.And that’s not all for BMW. Jaguar Land Rover announced in June it will team up with the German automaker to work on its fifth generation of electric-drive technology, which is set to roll out next year with an electric X3 crossover.Daimler Joining GeelyDaimler decided earlier this year to transform Smart, its struggling small-car division, into an all-electric brand rooted in China with the help of its largest shareholder, Zhejiang Geely Holding Group.The two groups also agreed last October to enter China’s ride-hailing and car-sharing business by forming a 50-50 venture. They plan to levereage models including the Mercedes-Benz S-Class and E-Class and the ultra-luxury brand Maybach to battle market leader Didi Chuxing.Honda Hitching RidesEven Honda Motor Co. has pivoted from the go-it-alone approach that it stuck to for decades. The Japanese automaker joined an existing venture between Toyota Motor Corp. and SoftBank Group Corp. earlier this year.Last fall, Honda committed to investing $2.75 billion in General Motors Co.’s Cruise self-driving unit. The two already were working together on electric-vehicle batteries and hydrogen fuel cell systems.Toyota’s Electric-Car CooperationToyota, whose battery-powered RAV4 partnership with Tesla Inc. ended up being a short-lived clash of polar-opposite business cultures, entered another electric-vehicle alliance in 2017 with Mazda Motor Corp.Months after announcing the Mazda pact, Toyota added Suzuki Motor Corp. to the mix, with the two saying they plan to bring electric vehicles to China and India beginning in 2020. And in June, Toyota added Subaru Corp. to its stable of EV partners.\--With assistance from Keith Naughton.To contact the reporter on this story: Kyle Lahucik in Southfield at firstname.lastname@example.orgTo contact the editor responsible for this story: Craig Trudell at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
U.S. equity futures extended gains Friday, following on from record high closes for both the Dow and the S&P; 500 last night, as investors continue to expect interest rate support from the Federal Reserve while betting on underlying strength of the domestic economy.
Daimler shares traded in Frankfurt Friday after the luxury carmaker issued its second profit warning in as many months as it joins domestic rival BMW in seeing significant headwinds in 2019.
(Bloomberg Opinion) -- President Donald Trump has been hunting for reasons to extract trade concessions from the European Union with the eagerness of a dog scrabbling around for a bone buried in the back yard.First came Germany’s $24 billion car trade surplus with the U.S., with Trump coming close to labeling the import of cars made by BMW AG, Mercedes and Volkswagen AG as a threat to America’s national security (before he granted a reprieve). Then there was a World Trade Organization ruling on Airbus SE’s long-running subsidy fight with Boeing Co., which gave the White House enough ammunition to threaten tariffs on at least $11 billion in European goods under the cloak of fair trade.Now U.S. officials have found a new angle of attack: European digital taxes, specifically France’s. The French are about to impose a 3% levy on sales made in the country by tech companies with more than 750 million euros ($845 million) of global revenue. The likes of Alphabet Inc.’s Google and Apple Inc. have been up in arms about what they describe as an unfair tariff on Silicon Valley. And now they’ve been joined by their government, which is starting a probe of the French tax under Section 301 of the U.S. Trade Act, alleging harm against American interests.The choice of weapon is telling. Trump has used this type of inquiry against China to attack it with unilateral tariffs. This isn’t about patiently waiting for a ruling from the WTO, this is the stuff of trade wars.While the French initiative certainly has flaws, Paris is also being singled out for political and tactical reasons. Several other countries are introducing a digital tax too, and France would happily ditch its levy in favor of an OECD solution. What’s really motivating Trump’s team is the chance to drive a wedge between the French president Emmanuel Macron and his euro zone partners. Germany has held back from introducing a tech tax of its own, no doubt fearful of U.S. retaliation, while Ireland – whose low corporate tax rates are a magnet for tech giants – has fought hard against the idea. Remember too that Macron makes a virtue of opposing Trump. He was the only European leader to openly object to starting trade talks with the U.S., and he’s fighting to keep the Iran nuclear deal alive. The tech tax is just another way for Trump to apply counter-measures.What happens next is a big test of whether Europe will stand by France despite the obvious divide and rule tactics from the White House. The EU’s Competition Commissioner Margrethe Vestager had spoken approvingly of national digital taxes despite fears that they might distort competition, but her term ends soon. Europe’s leaders need to demonstrate that multilateralism still counts in an era of bilateral arm-twisting. In the longer term that means trying to maintain a global trading system (even a shrunken one) that’s based on shared values that run counter to Trump’s.Zaki Laidi, an international relations professor at Sciences Po in Paris, has called for a “Euro-Pacific Partnership,” bringing together Canada, the EU, and the remaining countries in the Trans-Pacific Partnership. This would support the WTO (which is under siege by the Americans), comply with the Paris climate accords, and reform dispute settlement procedures rather than rip them up. As for tech, an EU or OECD agreement on digital taxes would make more sense than messy national solutions – and would avoid Trump’s opportunistic singling out of individual victims.Unfortunately, this is all easier said than done. The U.S. president is showing no signs of easing his tariff barrage and the trade-dependent EU economy is stuttering, making it easier for him to apply pressure. Trump is a true test of European unity, and Europe hasn’t passed it yet.To contact the author of this story: Lionel Laurent at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Lionel Laurent is a Bloomberg Opinion columnist covering Brussels. He previously worked at Reuters and Forbes.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- President Donald Trump is hoping his daughter-in-law can help shore up his standing with female voters.Lara Trump -- wife of the president’s son, Eric Trump -- will launch the “Women for Trump Coalition“ aimed at aiding the president’s re-election campaign. It will debut next Tuesday at a casino in suburban Philadelphia, where she will be joined by Republican National Committee Chairwoman Ronna McDaniel, former White House communications aide Mercedes Schlapp, and Kimberly Guilfoyle, the ex-Fox News personality who is dating Trump’s eldest son.“The Women for Trump coalition will be a national effort to mobilize and empower women who support President Trump to help get the message of ‘Promises Made. Promises Kept’ into their communities across America,“ Hannah Castillo, director of coalitions for the Trump campaign, said in a statement.Trump, who has frequently come under fire for his past treatment of women, has consistently struggled to win the approval of female voters, with 52% of women surveyed earlier this month by Gallup saying they believed the president should be impeached. Trump won 41% of the female vote in 2016.‘Antichrist’ Sanders Lists Hit Parade of Haters (2:51 p.m.)Bernie Sanders published a list of “anti-endorsements” on his presidential campaign website with quotes from JPMorgan Chase CEO Jamie Dimon, former Goldman Sachs CEO Lloyd Blankfein, former Federal Reserve Chairman Alan Greenspan and other luminaries of Wall Street and beyond.“Bernie Sanders, in my opinion, doesn’t have a clue,” Leon Cooperman, a former partner at Goldman Sachs, is quoted as saying.“It has the potential to be a dangerous moment,” Blankfein said of Sanders’s campaign.“In 2016 I saw Bernie Sanders and the kids around him. I thought: ‘This is the antichrist!”’ said Home Depot Co-Founder Kenneth Langone.Sanders, a Vermont senator and avowed democratic socialist, is running a campaign focused on taking on the billionaires and Wall Street elite. The web page approvingly quotes Franklin Roosevelt -- “I ask you to judge me by the enemies I have made” -- and Frederick Douglass.In a statement Sanders said of the business leaders quoted: “we welcome their hatred.”Other quotes listed include:“The senator’s uninformed views are, in a word, contemptible” -- Lowell McAdam, former Verizon CEO.“If Bernie Sanders became president, I think stock prices should be 30% to 40% lower than they are now” -- Stanley Druckenmiller, hedge fund manager. -- Emma KinerySteyer Kicks Off Spending on National TV Ads (2:22 p.m.)Billionaire Tom Steyer is on a roll. Two days after announcing his presidential candidacy, he has already spent $1.4 million on TV ads in the key first nominating states of Iowa, New Hampshire, South Carolina and Nevada.The ads also will run nationally on CNN and MSNBC for two weeks.Steyer, 62, hinted at a run a 2020 run early this year, but showed up in Des Moines, Iowa, in January only to announce he had decided against it. The hedge fund manager, who has been focused on impeaching President Donald Trump, announced his candidacy in a video message on Monday.Few candidates have done a single TV ad yet, and none has spent as much money as Steyer has. Senator Kirsten Gillibrand of New York launched ads Tuesday targeting Trump in Pennsylvania, Ohio and Michigan, where she will be traveling this week. Representatives Tulsi Gabbard of Hawaii and Seth Moulton of Massachusetts ran TV ads in June. Former Maryland Representative John Delaney, the first to join the race, bought a TV ad during the 2018 Super Bowl. -- Emma KinerySenate Leaders Clash Over Election Security (1:23 p.m.)Senate leaders clashed on the chamber floor about how Congress could prevent foreign interference in the 2020 elections, as the Trump administration was scheduled Wednesday to give lawmakers a long-awaited briefing about its efforts to prevent a repeat of Russian meddling in 2016.House and Senate lawmakers will be briefed by a group of top administration officials including FBI Director Christopher Wray, Director of National Intelligence Dan Coats and acting Homeland Security Secretary Kevin McAleenan. They will appear after Senate Minority Leader Chuck Schumer pushed for months for the meetings, with Majority Leader Mitch McConnell only recently getting on board.Still, the two top Senate leaders continue to spar over whether any further legislation addressing election security will be needed this year. McConnell made no promises.Instead, the Republican took to the Senate floor to blame former President Barack Obama for being too soft on Russia, which he said paved the way for the 2016 election meddling. He insisted that under the Trump administration there has been “greater success” including the indictment of 28 Russian nationals and entities by Special Counsel Robert Mueller and passage of $380 million in funding to help states combat potential hacking.Schumer insisted Republicans “fought tooth and nail” against that funding and that top GOP leaders continue to show little interest in measures that would help protect state voting systems and combat foreign influence through social media. -- Laura LitvanDe Blasio Seizes Upon Women’s Soccer Parade (11:13 a.m.)New York Mayor Bill de Blasio, who’s been traveling across the U.S. trying to ignite interest in a long-shot campaign for the Democratic presidential nomination, seized upon the Women’s World Cup parade in his city to tout his progressive credentials.He kicked off the parade on Wednesday vowing that as president he would “pursue executive action” if necessary to “guarantee equity in resources and pay for women’s and men’s national sports teams.” Team members have sued the U.S. Soccer Federation over the issue.The mayor addressed the crowd, saying, “The equality of women must be guaranteed in this nation,” as thousands chanted, “Equal Pay USA.”The event featured the women’s team waving to tens of thousands of people as they made their way on the back of a truck up the “Canyon of Heroes,” a half-mile stretch that fans packed on both sides of lower Broadway. Shredded recycled paper floated down from office towers above.The event was bound to take on political significance after Megan Rapinoe, one of the team’s stars and leaders, rejected any possibility that the team would visit Trump’s White House. Trump posted messages on Twitter attacking Rapinoe. -- Henry GoldmanWarren Asks Companies to Disclose Climate Risk (10:30 a.m.)Senator Elizabeth Warren on Wednesday reintroduced legislation requiring publicly owned companies to disclose their exposure to climate-related risks.The measure is cosponsored by three fellow Democratic presidential contenders, Senators Kamala Harris of California, Kirsten Gillibrand of New York and Amy Klobuchar of Minnesota, along with New York Representative Alexandria Ocasio-Cortez.Climate change is a top issue for Democratic voters in polls. Warren’s bill is the second legislation on the topic offered by a 2020 candidate this week. Senator Bernie Sanders, one of the top-tier competitors for the 2020 nomination, unveiled a resolution calling for “massive” federal action to reverse the effects of global warming that is also cosponsored by Ocasio-Cortez.Warren’s Climate Risk Disclosure Act requires companies to disclose to the Securities and Exchange Commission “critical information” about exposure to climate risks like greenhouse gas emissions and a company’s total amount of fossil-fuel related assets. The bill aims to encourage companies to more quickly switch to more efficient energy sources. Warren originally introduced the bill last year. -- Emma KineryHarris, Warren, Sanders Boost Staff Diversity (5 a.m.)Top 2020 Democratic presidential candidates this year bolstered the share of staffers in their Senate offices who are women and minorities, according to a report obtained by Bloomberg News.Warren, Harris and Sanders all hired more diverse staffers in their congressional offices. Women and minorities are key constituencies for the Democratic nomination and the general election against President Donald Trump next year.Harris hired the most racially diverse workforce of the presidential candidates, with 70% of her office identifying as nonwhite this year, compared with 66% in the same period of 2018 and 61% in 2017. Almost two-thirds of her staff was female, according to the report.The share of Sanders’ team that identified as a racial minority rose to 28% this year from 18% in 2018. Since 2017, more than 60% of his staff has been women. On Warren’s staff, 48% identified as nonwhite, compared with 36% last year and 34% in 2017. Women represented 59% of her staff this year, compared with 51% last year.By contrast, Gillibrand saw a slight decline in the share of staffers who are racial minorities. In her office, 46% identified as nonwhite this year, compared with 53% in 2018 and 48% in 2017. She tied with Sanders in hiring women workers, with 63% of the workforce identifying as female.The majority of New Jersey Senator Cory Booker’s staff -- 61% -- are people of color, though that represents a slight decline from last year. Booker increased the share of women in his office from last year. Klobuchar increased both the share of racial minorities and women on her team, but she still has less than 50% in both categories.The annual survey by Senate Democrats offers a snapshot of the diversity of lawmakers’ offices as of June 30. -- Naomi NixHarris Joins Forces With Ocasio-Cortez on HousingHarris and Ocasio-Cortez of New York are teaming up to introduce legislation to remove barriers that prevent people with criminal records and their families from obtaining federal housing.Harris, who’s vying for the 2020 Democratic presidential nomination, has been criticized for her past work as a prosecutor and for not being as progressive as contenders like Warren or Sanders. Working with the young star of the progressive left to address criminal justice reform could help remedy that perception. Sanders and Ocasio-Cortez already have teamed up on two measures.The Fair Chance at Housing Act would remove the “one-strike” policy, which calls for tenants to be evicted for a single instance of criminal activity, and the “no-fault” policy, where entire families can be evicted because of the actions of a single member.The bill raises the standard of evidence public housing authorities need when determining whether to screen or evict a tenant. It also bars the use of “suspicion-less drug and alcohol testing” by landlords and public housing authorities. Harris over the weekend announced another housing proposal of a $100 billion program to help African-Americans buy homes. -- Emma KineryThird Democratic Debate Will Be in HoustonThe Democratic presidential candidates will meet in Houston on Sept. 12 and 13 for the third debate of the 2020 campaign season. Their hosts will be ABC News and Univision, ABC said in a statement on Tuesday night, which added that the format, venue and moderators had yet to be announced.The first debate, in Miami last month, was in a swing state, as will be the next one, in Detroit on July 30 and 31. Texas, however, remains a solidly red state despite Democratic aspirations to at least turn it purple. Democratic National Committee Chairman Tom Perez, in a statement announcing the Houston debate, hailed Democratic “victories all across the state.”But a popular Texas Democrat, Beto O’Rourke, failed to unseat Republican Senator Ted Cruz last November. O’Rourke, of course, is now running for president. -- John HarneyComing Up Wednesday:Most of the Democratic presidential candidates are off the trail. Self-help author Marianne Williamson will be in Charlotte, North Carolina; Entrepreneur Andrew Yang will be in Manchester, New Hampshire.Here’s What Happened Tuesday:Tom Steyer, the billionaire hedge fund manager turned liberal activist, announced Tuesday that he is entering the crowded race for the 2020 Democratic presidential nomination. Steyer, 62, has two trademark issues: impeaching Trump and climate change. He hinted at a run a 2020 run early this year, but showed up in Des Moines, Iowa, in January only to announce he had decided against it. In his first day as a presidential candidate, Steyer already spent $1.05 million on TV ads placed in key states, like Nevada, South Carolina, and Iowa, as well as Boston.Democratic presidential front-runner Joe Biden and his wife, Jill Biden, earned more than $15 million during their first two years out of the White House, according to a financial disclosure. The bulk of the income came from payments for the memoirs they’ve each written. The couple’s total income in 2017 was $11 million and nearly $4.6 million in 2018. Their net worth is between $2.2 million and $8 million, according to a separate financial disclosure filed Tuesday that doesn’t include their real estate holdings. By contrast, Biden’s disclosure with the federal Office of Government Ethics for 2016, his last year at the White House, showed the couple’s assets were worth between $303,000 and $1 million and they had liabilities between $560,000 and $1.2 million.\--With assistance from Naomi Nix, John Harney, Emma Kinery, Henry Goldman and Laura Litvan.To contact the reporter on this story: Justin Sink in WASHINGTON at firstname.lastname@example.orgTo contact the editors responsible for this story: Joe Sobczyk at email@example.com, Laurie Asséo, Max BerleyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
German original equipment manufacturers (OEMs) BMW Group and Daimler AG inked a partnership on July 4 for a long-term strategic cooperation in autonomous driving, focusing on jointly developing next-generation ...
German auto makers BMW and Daimler are jointly building self-driving cars. There are a host of automotive partnerships hoping to remove the driver from driving, but Tesla prefers to go it alone.
(Bloomberg Opinion) -- If BMW AG boss Harald Krueger has a flaw, it’s that he lacks confidence and isn’t much of a showman. Those are criticisms that nobody has ever leveled at the heiress Paris Hilton.BMW invited Hilton and a host of other “influencers” to Munich last week to help promote the company’s future lineup of electric and autonomous models, an area where BMW is perceived to have become a laggard (somewhat unfairly in my view). If the aim of the visit was to show that the thoughtful, cautious Krueger is as aggressive and ambitious as Tesla Inc.’s Elon Musk, it appears to have failed. Krueger confirmed on Friday that he wouldn’t be seeking a second term of office when his contract expires next year.The news isn’t all that surprising and shouldn’t unsettle investors too much. Bloomberg News reported that the BMW CEO’s future was in some doubt last month, and I wrote then about why Krueger has struggled. There are several good internal candidates to succeed him, including development chief Klaus Froehlich and production director Oliver Zipse.Still, Krueger’s decision shows just how difficult it is for carmakers to keep their stakeholders happy at a time of unprecedented technological upheaval in the industry. His peers and rivals are unlikely to take much satisfaction from his premature exit.BMW’s profitability and share price have lagged recently because of a cornucopia of challenges, most of which are beyond the CEO’s control. The company has been held back by global trade tensions, the demise of diesel, new carbon emissions regulations and antitrust provisions.During times like these, charisma can help convince employees and investors that a brighter future still lies ahead. Sadly, since fainting on stage in 2015, Krueger has faced questions about whether he was up to the job. The cautious design of some of BMW’s recent models cemented that timid impression.While Krueger has been compensated well, it’s hard to envy him. Carmakers that don’t invest enough in electric vehicles are panned for not being pioneering. Yet electric car projects still don’t make much money and heavy spending on these technologies impairs cash flow. You can’t win in the eyes of shareholders.It was hardly the case that Krueger had his head in the sand: The collaboration between BMW and its great rival Daimler AG on mobility services and autonomous driving showed he was willing to take radical steps. It wasn’t enough, but his successor won’t find things any easier.To contact the author of this story: Chris Bryant at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
BMW and Mercedes started working together on autonomous cars earlier thisyear, and now they have optimistic plans to deliver them
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Qualcomm Inc., BMW AG, and Deutsche Telekom AG clinched a victory Thursday after European Union member states scrapped new rules mandating WiFi technology as the basis for how future connected cars talk to each other.The ruling is victory for 5G technology as countries around the world prepare for the roll-out of ultra-fast 5G wireless networks, which will power everything from self-driving cars to smart factories.The legislation -- first proposed in March by the European Commission, the bloc’s executive -- aimed to govern how future connected and automated cars in Europe send information between vehicles and infrastructure, in order to communicate about dangerous situations, road works, traffic lights and more.The companies had been urging EU legislators to veto it out of concern it would force them to make additional investments to fit a soon-to-be outdated technology, saying WiFi offers poorer performance than cellular-based technology compatible with future 5G networks.“Member states sent today a strong signal to the commission that technology neutrality should prevail," said Maxime Flament, chief technology officer at the 5G Automotive Association, which includes Qualcomm and Daimler AG as members. "Only a level-playing field between existing technologies will allow safer, more efficient mobility on European roads."The decision by representatives of the EU’s member states, which still needs to be formally rubber-stamped by its ministers on Monday, forces the commission back to the drawing board to come up with a new proposal.In a statement, EU Transport Commissioner Violeta Bulc said she takes "good note" of the decision, stressing the need for an EU-wide cooperative intelligent transport system."We cannot miss this opportunity and lose valuable time to make our roads safer," Bulc said. "We will therefore continue to work together with member states to address their concerns and find a suitable way forward."Volkswagen AG, General Motors Co., and Volvo Group have been proponents of the draft rules favoring WiFi systems, arguing that the industry needs clarity on what systems to use as soon as possible, and that it currently is the only proven technology.(Adds comments from 5GAA, European Commission.)To contact the reporter on this story: Natalia Drozdiak in Brussels at firstname.lastname@example.orgTo contact the editors responsible for this story: Giles Turner at email@example.com, Nate LanxonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.