. >> the volkswagen executives speaking earlier to matt miller on bloomberg. bloomberg global autos reporter, he is the real deal when it comes to carmakers. what i don't understand is that volkswagen is saying things are going to get better. they can the chips back on. and that the share prices is down from 5%. >> they had a fairly low bar to clear. a live concert going into the print about how well they were going to hold up in the third quarter. they did go into the report months and weeks ago really warning about how hard this crisis was going to hit them. they lowered the bar, they clear that far. the analysts were pretty ok with the results today but you have a situation where a company not only beat expectations, but raised guidance, restarted dividends. you look at ford, the look at what tesla just did last week, and is really sort of easy to see that maybe volkswagen is being held to a bit higher standard. >> why? what do they need to do to fix that? >> you here to talk about some of the market brains particularly being a drag. there is a bit of a sit

is that still a topic of discussion at volkswagen? >> for sure. but that takes time, we have to build up the resources and the landscape in the car really is consolidating. we are coming to higher and more performance units in the car. it could make sense in one of the other area to do your own semiconductor design. we are working on that, this is our way forward not for all semiconductors. the semiconductor content in the cars is growing, 7% to 8% year after year. so there is a lot of silicone going into the car in the future. some of it will be made by our own entities. yvonne: that was the volkswagen ceo herbert diess, speaking with matt miller. a line crossing from china right now -- they have drafted security rules when it comes to overseas data use. a security review of overseas data use. not entirely sure the details behind that and what companies it will impact, but we are seeing more of that regulatory overhang here once again. david: the lack of detailed means we will move things along and we will get an update when we get more details o

. >>> volkswagen's ceo will join us to discuss the chip crisis, low inventory, the ev push, and elon musk's surprise appearance on a vw conference call. >>> a check on the markets the dow is down a 55 we were briefly positive the s&p hanging on to an eight-point gain the nasdaq up 92 points or two thirds of one percent. you heard about housing. home builders are higher on a bounceback in home builder sentiment. lennar leading the way there weighing on the dow is disney. bay close downgraded the stock on concerns over slowdowns on streaming numbers. shares are down 3.5% to $170. >>> a strong start to earnings season but this week's results could decide the fate of the mid-october rally that has been boosting the markets with us is stephanie link, high tower's chief investment strategist and a cnbc contributor with stocks to watch. you have three stocks you have got your eye on and think we should, too. let's begin with one that hasn't gotten a lot of love in recent years. ibm. >> that's for sure it is good to see you, tyler this is a restructuring story. any progress they are making o

they tend not to announce them in that manner. >> if those guys are ford, gm, volkswagen are leading right now who is lagging behind? >> good question. it feels like the japanese. it feels like the japanese they are joy toyota others are spending on batteries but they are doing, they are still tied to hybrid electrics. right now it looks like a high cost strategy for both one or 50 a kilowatt hour out that that means a lot. battery costs are supposed to call that means ev's be at or cheaper than gas powered cars and you won't need an while the hybrid strategy y instead of some material make a battery manufacturer? >> great question. battery makers tend to be listed in northeast asia diversified materials companies, the ev boom does not necessarily impact their income statement the way it does. it's a lithium minor, it is one of the largest minors in the world has low cost assets the automakers hit their goals, battery capacity is going to go up tenfold over the next ten years. that will mean a lot more lithium business. >> real quick to have a question before we go? lex first i have

down about 3% volkswagen has come out saying they are unfortunately going to deliver fewer vehicles this year than hoped, but i spoke to the ceo, and he says that he's confident the worst of the chip crunch is behind us. lastly to ab, which is soaring this morning, shares up more than 7%, they hiked the guidance after beating expectations >> thank you very much. >>> now to some of your top stories this morning, including the latest on democrats racing to get president biden's plans for trillions in government spending over the finish line. bertha combs has more on that this morning this. good morning. >> good morning. president biden is expected to attend a meeting with house democrats this morning, the president delaying his trip to europe for a summit with other world leaders by several hours to personally appeal to progressive members to vote in favor of the stalled infrastructure bill. that bill has already cleared the senate and house speaker nancy pelosi is aiming to hold a vote on it later today democrats are also racing to reach an agreement on the social spending bill after

i don't know where it is today and then you have got volkswagen, that's usually about 160, $170 billion range. that gives you some perspective on how much bigger tesla's market cap is than toyota and folks having aon, which, by the way, are the two largest automakers in the world, far bigger than what tesla is. tesla's annual sales this year, they might hit 48a -- sorry, 885, 890,000 vehicles. they were 490 last year. by comparison you are going to have both toyota and volkswagen, they are going to be well over 8 million vehicles, 9 million vehicles, somewhere in that range depending how much things have been dialed back in terms of product because of the chip crisis bottom line, this is the automaker that really has moment up not just in terms of market cap but in terms of where the industry is headed when it comes to electric vehicles. >> is there -- we had a guest on last week, kelly, you may remember who it was what had a price target of 42. >> it was 150 on tesla. >> 150 on tesla. >> yeah. >> and i guess the question is, at these levels, how, if the at all, does the investment comm

volkswagen is hoping to start producing electric cars that one of its factories sooner than expected. that facility is located in wolfsburg, germany, and it's the largest auto plant in the world. the automaker is hoping electric cars could be developed there by 2024, which is two years earlier than its current target. volkswagen is expected to roll out and electric sedan in germany by 2026 says getting these vehicles there faster would make it more competitive. coming up. the giants remarkable regular season ends in styles force director marc boney is up next with sports coming up tonight on the 10. o'clock news video shows people dragging and robbing a 75 year old victim in the parking lot of the space shopping center. investigators want your help to find that's a good taco. dude. it's a sandwich. [beep beep] it's a sandwich! it's a taco! ugh, not another taco guy. the new crispy chicken sandwich taco from taco bell. [bong!] the new crispy chicken sandwich taco from taco bell. you. one of the most incredible divisional races is finally over much to the relief of giant fans. you want

a story this morning talking about 30,000 job cuts at volkswagen. you need fewer people to build motors than engines. the u.k. housing market continuing to provide a good update for barrett. that setting the sector on fire. if you want to talk about the housing market being on fire the u.k. is an example. man group, was at 5.6 billion they took in? well above expectations. it continues to pull in funds, a fresh record in terms of assets under management. alix: volatility equals active management. german finance minister olaf scholz is in washington for an imf meeting. in report turn caught up with him -- annmarie hordern caught up with them. >> there are a lot of prices that increase which is also due to the economic recovery we have seen world wide. so far all the experts tell us in the next year we will have normalization of price. alix: annmarie hordern joins us for more. most likely olaf scholz is the next chancellor of germany. what did we learn on what kind of spending we can see on that front? annmarie: two things came out of my discussion. e

and i also buy it in companies like volkswagen and toyota, even though toyota has talked about hydrogen lot and has been slow to move in electrification. i think all of those global scale companies have the ability to do it. just the profit dynamics haven't followed to this point, and they have just been slow to get involved in that way. tom: lisa abramowicz has the order in for the 2022 hummer h3 ev it-ish and one, priced in at $113,000. can they make an electric car for mere mortals instead of lisa? kevin: eventually, yes. tesla was a good indication of this yesterday. if you look at their average selling price, that was in the mid to upper 40's. so when you think about the way they started with six-figure vehicles, they have sort of moved all the way down to below $50,000. granted, a lot of that volume is going to be china. trans action prices are just lower than they are in the u.s., and the same for europe. but to be able to expand margins as transaction prices get lower and lower, the same thing will happen as global legacy automakers start to scale production of electric vehicles

that's interesting joe, quick with a name and then weiss. >> netflix, staying long >> volkswagen, staying long. great opportunity here >> good stuff. thanks, everybody. "the exchange" starts now. ♪ ♪ >>> thank you very much, scott hi, everybody. i'm kelley evans here is what is ahead on "the exchange." stocks can't seem to string together a rally here. energy concerns and slowing growth signs sending the dow lower. energy is leading the declines bit coin is bouncing, up to 55k. we will look at why all of this is taking place. >>> vladimir putin swoops in to say he will save europe from the energy crisis. that has nat gas plummeting 8% after a huge spike earlier on, why energy is now underperforming but is

volkswagen and the whole group of the company i would say the germans are the ones who after criticizing the electric car in 2008 and mocking it, you know, discovered all of a sudden that they needed to move, and they moved swiftly japanese are late. they are stuck in with the hybrid and now with the hydrogen cars maybe hydrogen cars, which we call dfuel cell, will come one day, but the next 10 or 15 years are going to be the era of the generation of electric cars. >> are you surprised the japanese automakers have taken so long to really get their act together when it comes to investing in electric vehicles >> not at all. you know, the strength of the japanese is, you know, the rigor by which they can enhance and develop systems that they adopt, but it takes a long time for them to adopt an innovation, and for electric car, except nissan that i was leading at the time, they were very, very slow to move and they are still slow to move, and they're going do pay a high price for this. >> and what do you think about a lot of these startups. we just talk about the motors that sold their plant

that's more than twice as much as b and w daimler and volkswagen combined. as they spent billions of dollars rolling out electric cars, $215000.00 jobs could be lost because there's no need for complicated combustion engines. that's almost a quarter of the number of people employed directly by the auto industry. now that belated investment has been reflected in other areas of the economy, while it's research and development spending banks highly had spending on digitization artificial intelligence and broadband has a lot to be desired. in a ranking of the world's most innovative countries seen hair, germany props up the top 10 countries. but the auto industry has also enabled the country to record trade surpluses with other countries. and that hasn't gone unnoticed by trading partners. because that worse ins bear economic problems, but it's germany's exports to china, which are causing the most concern, leaving the country, dependent on the communist country and unwilling to confront beijing's human rights abuses of all of this trade means the country doesn'

w. daimler and volkswagen combined. as they spent billions of dollars rolling out electric cars, $215000.00 jobs could be lost because there's no need for complicated combustion engines. that's almost a quarter of the number of people employed directly by the auto industry. now that belated investment has been reflected in other areas of the economy, while it's research and development spending banks highly had spending on digitization artificial intelligence and broadband has a lot to be desired. in a ranking of the world's most innovative countries seen hair, germany pops up the top 10 countries. but the auto industry has also enabled the country to record trade surfaces with other countries. and that hasn't gone unnoticed by trading partners. because that worse and bear economic problems, but it's joanie's exports to china, which are causing the most concerned, leaving the country, dependent on the communist country and unwilling to confront beijing's human rights abuses of all of this trade means the country doesn't

that's more than twice as much as b and w daimler and volkswagen combined. as they spent billions of dollars rolling out electric cars, $215000.00 jobs could be lost because there's no need for complicated combustion engines. that's almost a quarter of the number of people employed directly by the auto industry. now that belated investment has been reflected in other areas of the economy wanted to research and development. spending ranks highly had spending on digitization artificial intelligence and broadband has a lot to be desired. in a ranking of the world's most innovative countries seen hair, germany pops up the top 10 countries. but the auto industry has also enabled the country to record trade surpluses with other countries. and that hasn't gone unnoticed by trading partners. because that worse and bear economic problems, but it's germany's exports to china, which are causing the most concerned, leaving the country, dependent on the communist country and unwilling to confront beijing's human rights abuses. all of this trade means the country doesn't

w. daimler and volkswagen combined. as they spent billions of dollars rolling out electric cars, $215000.00 jobs could be lost because there's no need for complicated combustion engines. that's almost a quarter of the number of people employed directly by the auto industry. now that belated investment has been reflected in other areas of the economy while it's re thought to a development spending ranks highly had spending on digitization artificial intelligence and broadband has a lot to be desired. in a ranking of the world's most innovative countries seem hair, germany props up the top 10 countries. but the auto industry has also enabled the country to record trade surpluses with other countries. and that hasn't gone unnoticed by trading partners. because that worse ins bear economic problems, but it's germany's exports to china, which are causing the most concerned, leaving the country, dependent on the communist country and unwilling to confront beijing's human rights abuses. all of this trade means the country does

w daimler and volkswagen combined as they spent billions of dollars rolling out electric cars, $215000.00 jobs could be lost because there's no need for complicated combustion engines. that's almost a quarter of the number of people employed directly by the auto industry. now that belated investment has been reflected in other areas of the economy, while it's re thought to development spending banks highly had spending on digitization artificial intelligence and broadband has a lot to be desired. in a ranking of the world's most innovative countries seem hair. germany props up the top 10 countries, but the auto industry has also enabled the country to record trade surpluses with other countries. and that hasn't gone unnoticed by trading partners. because that worsens bear economic problems. but it's joanie's exports to china, which are causing the most concerned, leaving the country, dependent on the communist country and unwilling to confront beijing's human rights abuses. all of this trade means the country doesn't need to turn to the financial markets to borrowed money to run the count

w. daimler and volkswagen combined. as they spent billions of dollars rolling out electric cars, $215000.00 jobs could be lost because there's no need for complicated combustion engines. that's almost a quarter of the number of people employed directly by the auto industry. now that belated investment has been reflected in other areas of the economy wanted to research and development. spending ranks highly had spending on digitization artificial intelligence and broadband has a lot to be desired. in a ranking of the world's most innovative countries seen hair, germany props up the top 10 countries. but the auto industry has also enabled the country to record trade surpluses with other countries. and that hasn't gone unnoticed by trading partners. because that worse ins bear economic problems, but it's germany's exports to china, which are causing the most concern, leaving the country, dependent on the communist country and unwilling to confront beijing's human rights abuses of all of this trade means the country doesn't

safeway world championship, pumpkin weigh off no one squashed the world record with their volkswagen sized pumpkin. but everyone had a good time trying. he it's a good way to entertain myself, and it's a hobby and course just, you know, trying to get better every year and, uh, one way to just stay busy. in case you're wondering the current world record for heaviest pumpkin was actually set last month in italy that pumpkin weighed £2703 a lot of pies. the giants and dodgers battle it out in a one run thriller great game coming up after the break sports director market bonnie's has all the highlights of game three of the national league division series damage. shove us ravines. stay right there. right. here's the deal the giants during the regular season, we're one game better than the dodgers. they are now one game away from proving it in the post season as well. another one of those pictures duels on a strange night in los angeles. the wind was blowing temperatures in the fifties. and you know what the dodgers packed that place, but the giants made sure. those fans were sitting on t

german call manufacturing industry is going through particular with regard to semi conductors on the volkswagen, c, e o has been basically lab bossing this whole situation because of course they can't produce cars. it's not due to their lack of planning is that they didn't know about the semiconductor shortage in advance and the ceo, siemens barbara humped and she's also said, look, this is not a supply economy anymore. it's demand economy, there is intense demand. so now to answer your question directly, or that one can do instead of just in time, is to basically analyze one's entire pipeline and say, where have those actual, which is a code who other supplies and where are, where is that happening? like too many goods coming from china, you capital your eggs in one basket, i think that is what's happened. it's been too dependent, a one country for cheap labor and for cheap products. and so all of the, obviously the margins of these companies have done very well on the profit side, but now they've suffered from it. so i think you're going to find a lot of companies saying, is that a globalizat

used to work at volkswagen and are familiar with the industry. is everyone going to start picking this up soon? lars: it is obvious that every company that is series about carbon neutral must take emissions out of the vehicle. i don't see any other options for any manufacturer. matt: great again. lars stenqvist, the chief technology officer at ab volvo, on the forefront of automotive technology for construction, earthmoving, and trucking industries. wall street profits are surging. bonuses are set to follow. the new york state comptroller said in a report that the security industry's pre-profit surged 13% from a year earlier, $31 billion in the quarter. bonuses for bankers are expected to rise 6.5 percent for the year 2021 from a year earlier -- to rise 6.5% for the year 2021 from a year earlier. that is including bonuses increased to four had $38,450 -- two 438,450. amanda: now you know your bonus is going up 6.5% and this is one of the places, wall street, where the fact profit margins are still allowed. you don't see them demanding better fees

on dennis miller plus $138.00 volkswagen, the dentist miller plus one. and we're happy to welcome nellie to the show. it's so funny. when i think of nellie, i think of with a young man didn't know it when they had ran, but i just remember were just talking a little off the air after 20 years. they give you a meritus status. he's a 3 time grammy winner and he was recently honored at the 2021 b e t hip hop awards for his 22 years in the business. all of a sudden you become the wiser, the wiser character. his latest album, heart land is now available where you buy your music. please welcome nellie. how are you? huh. i'm good. well, how are you? a beautiful baby? i got to say we share a love of st. louis, may i, when i used to go in as a young comedian, we would go up the day go hill. i know they could call it that any more of the best italian on the planet earth, the, whatever they call it now. and there's up to a world that back that it was proud. did he go? hell, we love that man. yeah, thank you man. yeah, we just call it in that we just call it a stuart

the heart this time, literally the heartland. nelly right after this on dennis miller plus $138.00 volkswagen, the dentist miller plus one. and we're happy to welcome nellie to the show. it's so funny. when i think of nellie, i think of his said, a young man didn't know it when they had rent, but i just remember were just talking a little off the air after 20 years. they give you a meritus status. he's a 3 time grammy winner and he was recently honored at the 2021 b e t hip hop awards for his 22 years in the business. all of a sudden you become the wiser, the wiser little character ins latest album, heart land is now available where you buy your music. please welcome nellie. how are you, man? i'm good. well, how are you? a beautiful baby. i got to say we share a love of st. louis, may i, when i used to go in as a young comedian, we would go up to day go hill. i know they could call it that any more of the best italian on the planet earth. the whatever they call it now, and there's up to world that back that it was proud. did he go? hell, we love that man. yeah, thank you man. yeah, we just ca

german call manufacturing industry is going through, particularly with regard to semiconductors on the volkswagen. c. e o has been basically lab bossing this whole situation because of course they can't produce cars and it's not due to their lack of planning that they didn't know about the semiconductor shortage in advance and the ceo, siemens, barbara hampton. she's also said, look, this is not a supply economy anymore, it's demand economy, there is intense demand. so now to answer your question directly, or that one can do instead of just in time, is to basically analyze one's entire pipeline and say, where have those actual get you to code? who are the supplies and the where, where is that happening? like too many goods coming from china, you capital your eggs in one basket, i think that is what's happened. it's been 2 dependent, a one country for cheap labor and for cheap products. and so all of the, obviously the margins of these companies have done very well on the profit side, but now they've suffered from it. so i think you're going to find a lot of companies saying instead of globalizati

and dennis miller flush $138.00 volkswagen, the dentist miller plus one. and we're happy welcome nelly to the show. so funny, when i think of nellie, i think of the city a young man didn't know it when they had man, but i just remember were just talking a little off the air after 20 years. they give you a meritus status. these 3 time grammy winner and he was recently honored at the 2021 b e t hip hop awards for his 22 years in the business. all of a sudden you become the wiser, the wiser character. his latest album, heart land is now available where you buy your music. please welcome nellie. how are you? huh. i'm good. well, how are you? a beautiful baby? i got to say we share a lot of st. louis, may i, when i used to go in as a young comedian, we would go up to day go hill. i know they can't call it that anymore. the best italian on the planet earth, the whatever they call it now. and there's up to world that back then was proud. did he go? hell, we love that man. yeah, thank you man. yeah, we just call it in that we just call it the historic historic st.

german call manufacturing industry is going through particular with regard to semi conductors on the volkswagen, c, e o has been basically land bossing this whole situation because of course they can produce cars that it's not due to their lack of planning is that they didn't know about the semiconductor shortage in advance and the ceo of siemens barbara humped and she's also said, look, this is not a supply economy anymore. busy it's demand economy, there is intense demand. so now to answer your question directly, or that one can do instead of just in time, is to basically analyze one's entire pipeline and say, where have those actual get you to code who other supplies and where are, where is that happening? like too many goods coming from china, you can put your eggs in one basket. i think that is what's happened. it's been too dependent, a one country for cheap labor and for cheap products. and so all of the, obviously, the, the margins of these companies have done very well on the profit side, but now they've suffered from it. so i think you're going to find a lot of companies saying instea

on dennis miller flush, $138.00 volkswagen, the dentist miller plus one. and we're happy to welcome nellie to the show. it's so funny what i think adela, i think of with a young man didn't know it when they had read, but i just remember were just talking a little off the air after 20 years. they give you a meritus status. these 3 time grammy winner and he was recently honored at the 2021 b e t hip awards for his 22 years in the business. all of a sudden you become the wiser, the wiser little character latest album, heart land is now available where you buy your music. please welcome nellie. how are you? huh. i'm good umbrella. how are you? a beautiful baby. i got to say we share a lot of st. louis may i, when i used to go in as a young comedian, we would go up the day go hill. i know they can't call it that anymore. the best italian on the planet earth, the whatever they call it now, and there's up to world that back then was proud. did he go? hell, we love that man. yeah, thank you man. yeah, we just call it in that we just call it a stuart historic st. l

what the german manufacturing industry is going to particular with regard to semi conductors on the volkswagen c, e o has been basically lab boston, this whole situation because of course they can't produce cars and it's not due to their lack of planning is that they didn't know about the semiconductor shortage in advance and the ceo, siemens, barbara hampton. she's also said, look, this is not a supply economy anymore. it's demand economy, there is intense demand. so now to answer your question directly, all one can do instead of just in time, is to basically analyze one's entire pipeline and say, where have those actual get you to code? who are the supplies and the where, where is that happening? like too many goods coming from china, you capital your eggs in one basket, and i think that is what's happened. it's been too dependent, a one country for cheap labor and for cheap products. and so all of the, obviously the margins of these companies have done very well on the profit side, but now they've suffered from it. so i think you're gonna find a lot of companies saying instead of globalizat

elon musk was invited by herbert to talk to the executives of volkswagen wagon why? because he said that he was trying to pivot his business from making internal combustion engine cars to making electric cars and the hardest, fiercest competitor we have is elon musk. you have to learn from him and so he -- >> ron, that does raise the question, you've made almost $6 billion on this investment and say you plan to be in it another ten years. how key is that investment how key is elon musk to that investment would these companies, tesla and spacex which you have a stake in, would these companies be the same without him >> right now they wouldn't and so the risk that we have, the biggest risk i think is his health he works, you know, incredibly hard there's a picture on the internet when he's living in bocachica right now, spacex, we're going to see next week, i haven't been there yet, he's living in a must be like 500 square feet picket fence around it on the factory grounds, the launch grounds, and, you know, television i'm sure and -- i don't know if he has a televisio

he is not trying to destroy them i think he is making them better much you could see how volkswagen talked about that, too much he has given time to them and others. in their current form very challenging because of skills transferability. but i think surviving would be a good case and something that could keep up with the stock market would be excellent, but if you want to be a compounder that could have unlimited capital and autonomy, it's tough to hang with tesla to this point we have not seen that happen. >> they have put a lot of eggs in the china basket. is that concerning given what is going on there >> yes i think expectations around china have been daldialed back a lot much i think the next few years will be growth outside of china, india, vietnam, maybe australia. i think the geographic diversification outside of china is what you will see and vehicle platforms and models they just unveiled an atv. we are looking for multiple body styles maybe we can safe ve this for another time but the correlation between tesla and bitcoin is .9. and i think even things like spacex we were gett

part of them, into electric vehicle assembly lines >> you said they are three what is number two >> volkswagen. those guys are one, two, three worldwide. one, two, three in the united states but tesla is away head we said where do you think they will be by 2030. they said they won't have as much market share by 2030, but will still have a strong position by 2030 >> we will look forward to that. >>> the stock didn't move all too much on this news, tim seymour. >> we have heard a lot of this news and when somebody tells me it will happen by the end of the decade and it is the start of the decade, there is a lot to prove. gm made a lot of commitment to autonomous the announcement that their last mile ev services will be $10 billion by the end of the decade is exciting, but a long, long way to go. the market almost values gm now like their core business, the internal combustion engine has a limited value and at some point will be obsolete gm knows that. in their profession, they will be x by x is great 90 billion from 10 billion -- so from 23 and by the end of the decade 90 billion. tesla is a $77

coming up later, volkswagen backs its profit target for 2021 after the company hit third-quarter results, dialing back on deliveries, on volume. don't miss our conversation with the ceo. matt miller will bring that conversation in the next hour of programming. this is bloomberg. ♪ >> 211 million people use twitter every day all around the world. 20% of those are in the united states. the rest are outside the united states. the top of funnel is really healthy, so we get a lot of that act. we just need to do better to us to help converting people into making twitter part of their daily life. anna: that was twitter's cfo talking about twitter. the company plans to pass raw material increases onto clients. they have raised prices overall by 9%. they saw third-quarter inflation of 25% and plan to pass that on. inflation will remain a big theme. we will get the ecb rate decision. the bank looks to reassure consumers that inflation is transitory. facebook's connect conference kicks off, bringing together did digital and real world. they believe the digital space will supplant smartphone apps

elon musk made a surprise appearance at a volkswagen conference he assured that they will master the move to electric vehicles. he told vw executives that tesla is more agile than other carmakers because he is an engineer fasted with the production process. the sea -- the handling of the global chip shortage was impressive. saudi arabia hit several technology firms with tax bills worth tens of millions of dollars after it reassesses the tax model for the gig economy. uber and its subsidiary will have a bill worth 100 million dollars. several of the companies are trying to negotiate for their -- with the tax authorities. facebook will create 10,000 new positions in europe within the next five years part of efforts to develop a meta-verse. target markets are countries in the eu with u.k. being left out of the plan. facebook has been pushing the meta-verse where you would not just log into the platforms but live, work and play in its digital world. shery: we are seeing kiwi stocks seeing upside this morning. let us turn to sophie on what to watch. sophie: that inflation be this morning

friday jobs day will stop we have a volkswagen esg conference. plenty of things to be looking forward to after what could be an interesting weekend. bond market, bond movie. that wraps it up on tv. coming up, julia coronado, macro policy perspectives founder and president will be joining david westin. me and guide are heading to the cable show on bloomberg digital radio. join us. this is bloomberg. ♪ >> from the world of politics to the world of business, this is balance of power with david westin. ♪ david: from bloomberg world headquarters in new york, welcome to balance of power. one down and three to go, they took care of funding the government yesterday and beat the midnight deadline but they still have infrastructure, the budget and the debt ceiling to address. return to our washington correspondent now. we will keep the government going, that's good but what's next? joe: no shortage of crises in the nation's capital. nancy pelosi left the house last night after midnight saying they would be a vote today on infrastructure. this follows h

daimler, volkswagen, bmw have all made commitments to transform their own output to make more ev's in the next 10 years, and it is going to be important to see how they can respond to the likes of tesla in their own country. guy: it is also going to be interesting to see whether we've got enough electricity to power all of these cars. thank you, aggi cantrill joining us from berlin. europe is apparently going to see cooler weather next week. apparently when speeds are going to drop, but heating demand is going to pick up. that is going to add pressure to already strained energy markets, where price moves have become extremely volatile. here with the latest, rachel morrison, bloomberg energy reporter. we have seen incredible he volatile markets this week. i can't remember if it was wednesday or thursday when gas surged to the moon. what happens next? meteorologists are telling us it is going to be colder, but less windy. that doesn't sound look a great combination. rachel: that's right. today is a little more calm after a dramatic week, but we do expect the weather to get colder. winte

i was driving a volkswagen, and a cop was waiting. a state trooper pulled me over. he looked at my license and my license plate, he came back to me and said, i noticed you've got this german car. i noticed you've got and lbj sticker on the side of it and a new york license plate. son, you need to get out of here as fast as you can. yes, sir. that's how it was. mr. rubenstein: george washington who built this house and lived here for many years and passed away at the age of 67, can you imagine what it was like to be general in the revolutionary war with the very few troops fighting against the best army in the world? if you ever had a chance to meet with george washington, what would you have liked to ask him? sec. powell: i would have asked him, how did you decide to take a chance here? he was a remarkable soldier, and he lost quite a few battles. he kept coming back. he's been in different parts of the army and sections of the security system, but he improved with each exercise and never lost faith in himself and never lost faith in the country he was doing it for.

you have a $.50 chip holding up the completion of a vehicle for ford or volkswagen group, pc needing a usb bus controller, a one dollar part, and they cannot get it, so instead of putting product on the shelves, it is completely stopping production, so to add capacity, we have to de-risk. taiwan is over 90% of leading edge, korea handling the rest. what if something happens? we can't have zero production here. i know global foundries are planning fabs, but it is two years and $10 billion to build these, and it will not instantaneously fix things, the substrates apart, pieces needed to increase chip production. caroline: you're talking about the inflation pressures, going into a show room just paying up. if we onshore, will companies have to pay up? will it be more expensive to get what was originally $.50, chip waiting to go into it? >> no question. even right now, we will have to raise wages short-term. the types of workers that go into these fabs are not low-end workers. these are high level people well-paid. i spoke at an event alongside the ibm ceo, and we had this conversation.

diess of volkswagen on the manufacturing challenge. we've got so much going on this morning. we've got lagarde in 12 minutes. we've got michael mckee with economic data. we thought maybe would take a breath right now and talk to an adult on tech. there is too much talk that i think is off the mark. you do not get off the mark with angle flax, senior research -- with daniel flax, senior research analyst at neuberger berman. dan, what does the street get most wrong about apple and amazon? daniel: good morning. i think what they get wrong or underappreciated with apple is just the extraordinary pace of innovation we have seen for decades, if you think back to the ipod, the iphone, mac. they continue to reinvent with the new silicon. the wearables category, i think in a lot of ways, is just getting started. what i would say in terms of what they perhaps don't appreciate with amazon, again, a company obsessed with innovating and delivering value to customers, you have seen them enter and define new markets ordinary growth for amazon andra apple over the next several years. tom: wh

moving along the momentum of the fundamentals as you know, i've got a very, very sizeable position in volkswagen and porsche which needs the space which i just think is a lot cheaper and more durable at this point. >> happy it take the profits >> let me ask one quick question before i let you run >> to my recollection and you can correct me if i'm wrong, is this the first time in many years that you've played around in tesla shares or options in any way? >> it's the first time in a long time, so i periodically have been short the stock, and i don't think i ever made money on the short, frankly, and periodically been long it, but yeah, it's been -- i don't remember the last time i was involved in the stock, scott so your recollection -- >> that's what i figured and i don't recall -- pardon me, steve. i don't recall us having this conversation any time in recent memory i appreciate you calling in. and i want to get an upon date a and we owed that to our viewers and they should hear from you today. i don't want to ignore the broader story in the market today. we have new highs today. the dow and th

we are getting more evidence of it volkswagen saying just now that its tennessee plant will adjust shifts the week the 18th and 25th due to the chip shortage as hyundai is saying maybe the worst has passed >>> coming up, the red hot housing market could have more room to climb. goldman sachs says prices could rise another 16% by the ends of next year but our next guess says the market is cooling down. >>> and we will speak with the red fin ceo about how they are making viewings even easier. that's next on "power lunch. >>> welcome back if you are in the market toer a new home there is a new way to look at properties in person without a real estate agent. red fin is teaming up with adt to allow possible buyers to self tour homes in select markets this comes as red fin sees signs of a slight cooling in the housing market joining me now, the ceo of red fin. glen, thanks for being here. >> thanks for having me. >> you are having your best day since july bringing this up, your shares have fallen 20% year to date as the housing market has become more and more expensive. imgoing to go to diana o

of it actually forgot i had it in one account so took the occasion to get out because i believe that volkswagen and porsche are going to be much better performers they're going to be number one in ev next year and are firm number two now they've got great share in china. it's a much cheaper stock, about six times earnings i'm there. jim, we could talk about this. >> what are you talking about not succeeding in china? god, i love you, steve >> like vw vw's got more share in china >> i really don't -- fabulously in china >> guys, you sound like a garbage disposal i can't understand what you're saying too much going on at one time. jim, you can rebut what steve weiss said >> thank you, your honor gm has done very, very well in china. i don't really care what vw is doing. gm is killing it in china and frankly, it's the north american market where you're looking for success. you're looking for the lithium battery technology, which engine number one talked about the patents involved you're looking for that to be licensed out to other companies around the world >> that's the last word. jimmy, thank yo

[laughter] larry: leo looks like he came benchpress -- can benchpress a volkswagen. i want to be friends. leo: hey! [laughter] larry: leo, do you work out at all? is that genetic? what have you got going there/ -- there? leo: i played football, high school and college. i am a stallworth. here are your doughnuts. we love you, man. kristen: this is the best trash talking i have been engaged in in a long time. larry: leo, we have never met, but i love you already. i will send you a gift as condolences after tonight. i want you to feel better. leo: oh! [laughter] larry: we will talk to you soon. leo: i will not touch these doughnuts. larry: leo is great. coming up, new legislation aimed at addressing san francisco's housing crisis. the rules that could be relaxed to make it easier to build units. kristen: a stark reminder of the threat we are facing. let me get this straight. you've got an a.i. strategy to deliver a better customer experience, that will help us retain our customers and even grow our business? how much is this going to cost? here's the figure. 59. 59 mill

someone you didn't mepg earlier is hyundai very aggressive in electric, and volkswagen as well everybody is going to be in the game everybody is going to try to grab a piece of the pie. >> michelle, what about the sort of profitability here? i mean, tesla is already described as the most profitable mass market ev maker, most the most profitable automaker given its operating margins which i think are 15%. mercedes is close, volvo is way behind and the investments they are making in the giga press and other technologies to get these cars made quickly and at scale, can rivals match that? >> you know, the other companies are going to have the financial investments they are making and profit issues as well. i'm not a financial analyst. i can't speak to the margins, but everybody is going to make these investments. and right now, it's not a hugely profitable business. >> exactly, michael, and that's the issue, because this is not a hugely profitable industry to begin with what would your own sense be about the massive -- look at the investments it has taken tesla to get to this point they have

. >>> volkswagen's ceo will join us to discuss the chip crisis, low inventory, the ev push, and elon musk's surprise appearance on a vw conference call. >>> a check on the markets the dow is down a 55 we were briefly positive the s&p hanging on to an eight-point gain the nasdaq up 92 points or

think there's some value there so let's see how it moves into the fourth quarter >> steve weiss >> volkswagen. they report in the morning before we get in, and they had cautioned that the second half is when they will feel the semi shortage they didn't feel it the first half i think there's a very small chance they announce they will spin off porsche there have been articles in the paper about that in europe that will be monstrous i don't know if i would buy from the earnings but definitely buy tomorrow either way. >> joe >> st. louis-based $12 billion company bunge, renewable diesel vegetable oil. strong demand. >> thanks, guys. good to see everybody. "the exchange" is now. ♪ >>> thank you, scott hi, everybody. i'm kelly evans. here is what is coming up on "the exchange" >>> markets are hovering near record highs and one strategist says he has been buying some of the recently beaten down names including boeing and facebook. what has him looking past negative headlines and seeing 100% upside in both. >>> jet blue posting better than expected results but issuing weaker guidance for next quar

. >> yeah, volkswagen. as i said yesterday they'd probably disappoint in the quarter. they did and it would be the time to buy it now ford at nine times earnings will be $19 a share vw at nine times earnings next year will be up 50%. >> dr. j., a name, please, since weiss took all the time. >> merck, new high of the year. >> josh brown? >> amazon. >> there you go. thanks, weiss. "the exchange" starts now. >>> thank you, scott hi, everybody, i'm kelly evans here's what's ahead on "the exchange." the white house announcing details of its now $1.75 trillion social spending and climate bill it's a mouthful but we'll tell you what's in it, what's not, how it's going to be paid for and whether it has enough support to pass. >>> we're talking to ceos to get their thoughts on the economy. we'll hear from the head of huntington bank and wyndham hotels. >>> and it's a huge day for our earnings exchange. we