investigated by the u.s. department of justice. u.s. stocks are mixed. disappointing earnings from some of the biggest check giants. -- biggest tech giants. >> and the revival of a classic, the indian motorcycle brand. how it hopes to take on the american classic harley davidson. desk head to the markets where julie hyman has the latest on how markets are trying to climb up today. lots of earnings. julie: it would be a surprise if we got any gain at all. we are seeing some gains in the dow and s&p in particular. the nasdaq is being dragged down by some of those numbers. i want to hit some of those big stories. it seems like the focus is not macro, it is on these individual companies. let's get to some of them in .echnology third-quarter earnings sell short because of a higher tax rate. kind of mirroring the situation with ibm, both of these are legacy tech giants that are trying to push forward to the corrupt -- to the cloud, to other businesses? way still do things the old , in the case of microsoft buying software packages rather than subscribing or doing it through the cloud. on the flipside it is moving into the new age. that is hurting it. that is more expensive for alphabet or google. when people are surfing on their mobile phone. there is a shining star with him technology. it is advanced micro devices. even more importantly it is licensing its technology to a chinese venture. that is really what is fueling the gain in those shares today. dowing typically within the both of them to disappointing earnings. even though we have seen a rebound in commodities it is not sustainable. want to mention mcdonald's doing better. getting less than a half of 1%, but enough to help the dow. >> earnings are really driving things today. what about the whole quarter? >> let's look at earnings analysis. now have 130 of the 500 .ompanies about 85% of companies beating those earnings per share estimates, which is not entirely unusual. from where we started this earnings season. a little better than 2%. >> if you look at europe today, it is all about the autos. we are getting back a little bit of values. autos are done. i think today's story demolishes bigger trends. europe still clinging on in there. in terms of the actual movers on , this is where the real level pain -- level of pain is. 18.2 billion dollars, 16.2 billion euros. look at that, the demolition. 30% on the day. the question you need to ask yourself is this, are you at the bottom of the risk factor in the volkswagen story. new bag of 10. woe.g of sinceday drop, farthest 2015. lending toof japan, the real economy at negative rates. or the other brand. >> that won't stop people from getting those toys. vonnie quinn has more from our newsroom. president obama is waiting into the debate about whether or not the united kingdom should leave the european union. meeting with prime minister david cameron. in a meeting with the telegraph newspaper, mr. obama wrote the european union does not moderate rish influence, it magnifies it. london mayor says the u.s. would not compensate anything like the eu. why should they think it is right for us? president obama said u.k. prime minister cameron will hold a joint news conference, scheduled for 1150 with live coverage right here on bloomberg. the u.s. atomic bomb devastated the japanese of hiroshima. president obama will become the first sitting president to visit the site. this month the secretary of state john kerry went to hiroshima. the bombing of that city and nagasaki are viewed in the u.s. as hastening the end of world war ii. and: and south european union officials travel close to turkey's border with syria. many you nations have been dragging their heels on accepting more asylum-seekers. -- el is expected to more than 150 countries will sign the paris climate accord today at the united nations. the landmark agreement is aimed at reducing pollution and slowing rising temperatures linked to floods and droughts. countries have agreed to reduce fossil fuel emissions by generating the way -- by electricity in the way they -- by changing the way they power their cars. i am vonnie quinn. >> good to see you. let's talk about the emissions scandal and how much it is going to cost volkswagen. we did drop as much as 6%. we got a news conference underway in germany. he firmly believes the company will overcome the crisis. chris ryder is standing by. soothing words from the ceo. >> volkswagen's message is they can solve the crisis. >> we have ryan chilcott the board right now. he is our reporter on the ground. >> we would have to ask the american authorities that, as the schedule is out of our hands. we are available 20 47 for any questions we do. we cannot estimate how long this will be. >> that is the ceo responding. this is like reassuring the market they have a handle on it. the dividend took a smack as well. did dropicantly, it 90% since 2000. theives you the scale of crisis and how volkswagen is reacting. today they more than doubled the provisions they set aside for the crisis. it compares to 6.7 before. aside four.they set pre-of thefore financial impact of the crisis's now quantifiable, that is what the ceo said today. that is an important -- their underlying business is robust and manageable. financinghey have the in place to survive the crisis and that is the important message out of volkswagen today. >> there are more reports set to come out. >> today is getting their hands around the crisis. we don't know how this cheating came about. they are not going to update us next week, which was originally the plan. it is going to have to wait until the fourth quarter of 2016. that means that this crisis is going to stick with volkswagen throughout this year. they have a few months to go to fine tune this agreement. the devil is in the details. it remains to be seen how that plays out. lots of investigations going on and plenty of lawsuits. >> of course we have ryan chilcott in that news conference. some breaking news headlines coming in across bloomberg from that news conference. is in regard to jobs feed of gw bonus payments were cut substantially. in terms of bonuses to be cut in terms of job cuts. we have seen the ramifications. they lost the hotspot, the latest sales figures. there will be no job cuts here. back to you. betty: much more ahead. one of the biggest bears weighing in on earnings. head of u.s. equity strategy joins us next. ♪ >> live from london. is 3:14. how are you doing? betty: i'm in new york, you are watching bloomberg markets. returning back to how the markets are trading. earnings reports are pouring in. where does he stand now? a 2000 year end target for the s&p. how do you feel so far? how do you feel about it right now? >> expectations for the quarter are really low. we are seeing a positive surprise. i wouldn't get too excited. numbers get guided. we need a very strong surprise for the earnings to return to the more positive. >> we have seen the companies -- 59% haded 59% reported sales surprises. 89% reported earnings surprises. is that strong enough to change the story so far? >> that is in line with expectations. with the dollar retracted over the last several months, you are seeing a relief on the top line. i would say you need more dollar weakness. >> that is not a weakness trade. it depends on what you believe. the fed is going to do what you believe comes next. this measures 30 stocks on the s&p. up 23% since january the 20th. goldman would say you want to be more domestically focused. a lot of this is predicated on -- mario draghi is exerting patients. the bank of japan was landed at negative rates. that is all playing to this trade, doesn't it? >> you have seen u.s. to mystic stocks, which have been take momentum beneficiaries. divergence for the fed will be lifting off. they have underperformed quite significantly. if you just take a somewhat more , certainly taking on a much more dovish stance, that suggests -- i like the u.s. multinational trade. i think there is more room to surprise it on the upside. the more domestic stock will have been huge beneficiaries. >> i was reading the atlanta fed index. it is off by 1.5 percent paid and the new york fed has a new management. people would say to me i have a risk -- people would say to me we have a recession in the middle east. things are not going home in the middle of the united states of america. >> if anything we have seen negative revisions. the u.s. is going along this huge ran -- in the huge grand scheme. it also relates to the fact the dollar has been strengthening. they are directly linked to the dollar, which can be re-strengthened. that puts pressure on the emerging markets and broader global asking. the dollar continues to stabilize. my view on the market from here on, there is more room for upside. steeples are part of that. >> thank you so much for joining us. head of u.s. equity strategy at j.p. morgan. much more ahead on bloomberg markets. tgif. we're going to look at this. $3 trillion etf market. gold miner etf gone wild. moments ago the president arrived at 10 downing street. british prime minister david cameron, they are going to be holding a joint news conference. some controversy surrounding his to the u.k.. he has not been welcome i those i want to get to julie hyman who has more in our etf segment. >> we are taking a look at gold miners. it is already -- it is interesting to look at the underlying commodity and etf's in this case. >> it is $2 billion per day. this one.e are using outflows this year going up 70%. the reason being the three years leading up to this year, it took in about 4 billion. once bitten, twice shy. seeing ahen you are flow less loveless rally. goalat is in contrast with -- with cold itself. some significant inflows in the rally. >> it was seeing major outflows. >> another one of these is called a ring. what is this all about? you will see newer models come out. what it does is it is cheaper. >> cheaper versus gtx. out moreo screens exposure to your gold miners. it tried to correct some of the flaws in the newer models. -- don't most try to hedge the price of gold? >> there is a lot. >> there is this nugget which is the ticker. you are getting to the world of leveraged etf? >> in gold miners, this is a big business. nugget has over $1 billion, traits with intel and general motors every day, up 245% this year. this is triple three times gtx. this is really for the traders, but even further. this is one i always find exciting to look at. this is the triple level -- numberlever junior -- one. volatility is at 165%. so it is 16t 10%, times the volatility of the s&p. over $100 million per day and has 150 assets. there is some action in it. not quite as much as nugget. the fact it has anything speaks to the desire to trade around the gold miners. >> that extraordinary volatility is i won't get into my personal opinion that. julie, thank you. still ahead. they still trail behind harley davidson. new bikes burst that trend? he will talk to the ceo. -- we will talk to the ceo. great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. betty: live from bloomberg world headquarters in new york and london, i am betty liu. >> we want the bloomberg first world check. -- restricting the bonuses of -- collecting most of their bonus pay. they could afford to return money their companies lose big. debt six u.s.y agencies will have to adopt the rule. security jeh johnson has rejected a scheme to measure border security. a consultant dismissed the idea as specific and misleading. the index came after a color-coded system to measure terrorist threats dropped in 2011 after widespread confusion and ridicule. an autopsy is scheduled for music icon prince. he was found in suburban minneapolis. his sparks an outpouring of grief from fans around the world. many more have posted memories on social networks. adam silver says 2017 won't take place in charlotte if that controversial law is still in place. other entertainers have caps off performances in north carolina because of the bathroom law. and the majority of americans replacing slaveowner andrew jackson with harriet tubman. say putting the former slaves on the dollar bill is the right move. the treasury department announced the move earlier this week. global news 24 hours per day powered by our 2400 journalists. , matt miller may be busy buying motorcycles. the debate is you are not buying enough to take enough for tucci. today the caring family delivered their numbers. average they trading has gone through. a blow wide number. sales at 27%. and this is really where the story comes into play. beginning to turn a little bit lower. it is all about the tourists. where do the tourists go? they are coming back here to europe. that is certainly one of the stocks we are keeping an eye on. huge maker. they pulled back their production in brazil. stock takes a lovely run up today. this is where earnings beat by almost 8% area you have the momentum really driving higher. the government is long of this. to break even. british government had a few shares. we are hearing from sources there could be more aggressive job cuts to come. just ever so slightly. more jobs to come from what we were originally told in 2014. again a little bit more pressure in turning this to a point where he can get the money and get it off our backs. >> as you know harley davidson maybe the big hog and the motorcycle world. is gunning classic to overtake polaris. they are appealing to the nostalgic side of writers by introducing new models. polaris once this story -- has resurrected the name. last quarter sales were up 50%. matt miller joins us to talk with the ceo. >> a pleasure to have you on the program. let's start with where betty left off. she said buyers are in the nostalgic side of things. you have accolades for your engine design as well. what is it you think it is that causes indian to be such success for your? guest: springfield masses is where it started in 1901. really what we have done, what the motorcycle team has done since 2011, we have introduced nine new bikes. over 180 deals to the united states. and really an alternative to the legendary bike. we found with a great performing bike that writes better than it drop, even though it is dead gorgeous, we still have a very small following. we are off to a very good start. >> you started with a blank canvas and you gave the team enough money to invest as they saw fit. are you doing the same thing not bringing that market. your 156 get you eventually. we are excited about the octane. with the american muscle positioning, we have a great opportunity to accelerate growth in that business. we spend a heck of a lot of money. we do have engineering resources. a lot of those were directed toward building the indian bikes. we are excited about the octane and the additional bikes in the portfolio. >> i spoke with matt and didn't seem terribly worried. the 8000 pound gorilla, maybe you don't need to worry. in a similar position with our off-road vehicle business. how we can grow that business as fast as we can. we think competition makes everybody better. we are almost up four points in 2015. up not quite two points in the third quarter of this year. -- in the first quarter of this year. you have to think that is where some of it is coming from. plenty of room for both of us. >> let me ask you about razor. you guys invented the side-by-side four wheelers. you have had some serious recalls after some injuries reported because of fire problems. what is going on there. we have the best performing vehicle out there. all of the product and the 900-1000, we had more thermal events. we did work very closely with the product safety commission. we believe now with this recall we go back. wasn't one specific issue that we were going after fixing six different things with this recall. we have a saying with our guiding principle, it is safety and ethics always. money wepend whatever need to to make sure we get our customers back to writing. ultimately getting the razor business and the brand continuing on the strong growth it has been on. on myi look at the chart bloomberg. since the end of the recession, since march 3 it was on an absolute tear. up 16 times in the middle of 2015. i would guess the u.s. hit a recession looking at this stock chart. >> when you can explain how the market works, please do. i will tell you that 2015 is not the best year. they may lose the ability to produce motorcycles. we had a much larger impact from the world -- from the oil recession. we had a strong customer base with the workers on the platform. we took the action to decrease shipments to get our inventories in line. the market was a little spooked like that. it wasn't our best year. it is about driving fundamentals and getting back to innovation and growth. >> i have to say i'm excited. i just bought a jacket from one of his companies. expensive motorcycle jacket, i spent $1300 on a motorcycle jacket. don't tell my girlfriend about that. i would be in trouble. >> matt miller, thank you so much. much more ahead on the bloomberg markets. shouldn't consider that? president, there he is in the official motorcade. minister -- heme has had a dizzy schedule -- a busy schedule. queen -- highness the it was lunch with the queen. politics on the agenda. briefing. be a joint we will bring that to you here on this show. >> right now this looks like this happened just a few moments the president and the u.k. prime minister david cameron sat down for their bilateral meeting. we don't have word yet on what has been discussed. we will monitor for any headlines and the joint press conference is going to be happening in the next hour. >> it is time for the bloomberg business flash and some of the biggest stories in the news this friday. credit suites -- is according to people with knowledge of the matter. a design for instruments similar to catastrophe fonds at operational losses between 3.6 billion and $4.3 billion. the world's largest fast food chain upset profit that beat estimates. in thed's a store sales u.s. also did better than expected. results show the ceo -- it is picking up steam. delaying the release of its annual forecast because of the recent earthquake. the company and anointed its earnings. sony says the forecast won't push back until may. it says damage from last week's earthquakes in japan may hurt its operating results. those are the big stories doing the rounds outside of the markets. >> it has been 11 months since amazon began its same day delivery service. crunched businessweek the data in a fascinating article about how amazon looks and the area it serves. i read the story. it was a fascinating read. -- usingnforcing reinforced lines. >> the question is in store for everybody. what we looked at his amazon prime's one-day service was available, and we matched it over zip codes around the country. what we found were some major cities, service was not , even though it was available nearby. amazon was looking at its data. found no evidence that amazon set out to selectively do this. there was no evidence of that. thereo -- they reiterated was no evidence of that. it does reinforce some of these historic lines between neighborhoods. >> let's take one example. boston was a stark example. tell us the story about boston. >> boston has this one-day special service. members.or prime this is the service where you pay $99. if you look at the map of boston, you will see that there whereplotch in the middle the one-day service is not available. day, itan get this one is very clear on the map. you can get this service all over boston over a large area cut -- large area, except for that neighborhood. amazon calls that an anomaly. for the most part, when they are explaining services available in some areas, they talk about transportation, proximity to warehouses, and a number of customers in those areas. boston situation raises questions just because you can get the service all the way around that center area. start off ways, you the article by giving credit to amazon in the sense that they have helped equalize racial lines when it comes to shopping. >> in some neighborhoods and some poor neighborhoods, you can't get a lot of products or if you can they cost a lot more. we talked to some people who are great amazon prime was a thing for them, because they were able to order products they would have to travel far from to otherwise purchase. they wish they had the one-day service. >> what does amazon say? do they say they are going to address any of this? >> they say there was no intention to cut consumers out of the service. it is in progress. months agoabout 11 and they have rolled it out to other cities. an -- it is a revolving program. >> you can read the story in this week's bloomberg businessweek. >> certainly that is wanda have a read of this weekend. we go to a very remote island where they take their whiskey drinking almost as seriously. what a way to finish the week. >> it is time for pursuit. they are a cluster of islands, just off of scotland's west coast. and they are considered as the last region of scotland. he joins us now. great to have you with us mark, always a fascinating rivalry between my country, where we produce -- where they have this renaissance. tell us what is going on. >> i'm not going to get caught in that rivalry. it is a very strange spot of scotland. it really is like another world. been very religious for a long time. which meant that whiskey was not officially allowed there. they have finally broken through and we do have some whiskey that is legally produced and delicious, actually. >> give us a sense of the taste. obviously i am familiar with jamison's from the north of ireland. what are the favorite ingredients of this? >> you are hammering on about irish whiskey, i'm not going to take that date. this is real simple, it is very light. super --malt, which is brides is much easier to drink. i prefer it. >> i'm going to deposit for a moment to print outs -- for a -- nt to pronounce it >> she has to do it with a scottish accent. she has to have a go. >> you visit the proprietor of that facility, right? >> the name is red river because there was a bloody battle nearby the distillery. what i love is they have first language -- is there first language is not even english. they communicate largely in gaelic. there is a real sense of the world. >> i would imagine so. i clearly don't know as much as you do. the field to bottle whiskey, what is that exactly? >> one of the problems is it is hard to get stuff to it. from materials are expensive to import, because it is off the coast of scotland. it is field to bottle. it just drives down the road. >> i suppose the question is -- i suppose you save the exclusivity you buy into that story, what is the price tag? i'm sure it will be very affordable compared to some of the crazy well-known whiskeys. , the first 10 year malt will come on the market. i have already tasted it at three years and it is beautiful. yearnk it will be a 10 that any whiskey aficionado needs to have. am i you're making me have some now. you bring any back? >> i drank all of it. you.ank you can read more about luxury at bloomberg pursuit. >> we have the european closer trade coming up. what is moving markets? 5%, volvo flipping it around at 4.5% p.m. european equities dive for a second day in a row. we are all of that three-month high. london, paris, and frankfurt. down 1.6%, there is no doubt about it. luxury and focus, volvo in focus. that is the story in europe. york,is 11:00 a.m. in new 11 p.m. in hong kong. from new york, i'm betty liu. manus: i am manus cranny. you are watching the european close. manus: we are going to take you from new york back to london, on to berlin, and it will all be wrapped up in the next hour. here is what we are watching. president obama has arrived for a bilateral meeting with u.k. prime minister david cameron. with the debate over brexit intensifying, the leaders are set to hold a joint news conference this hour. betty: volkswagen is doubling the number of money set aside for the emissions cheating scandal. -- $18.2 billion. manus: shares of caterpillar are falling