losing altitude — airline giant ryanair brought down to earth with a slump in profits as consumers cutback. cleaner skies — sustainable fuel among the big issues facing aviation bosses at the farnborough air show. welcome to business today. i'm marc ashdown. we start with the markets, as global investors adjust to the news that president biden has pulled out of the race for the white house. markets had been positioning for a likely donald trump victory and the return of aggressive protectionist policies after his threats of hefty tariffs on foreign imports. well, the old saying goes "the markets hate uncertainty" and now the race looks more uncertain than ever. so what are investors making of it? european markets are mostly up after that sell—off last week. asia was a pretty mixed picture. here is how wall street

ended on friday. the futures markets are indicating they could open higher today after a rough week. reuters is reporting that pricing on a trump victory with betting firms has fallen. he still remains favourite, but the race is now seen as closer. let's speak to jane foley, head of foreign exchange strategy at rabobank here in london. last week, when it appeared that donald trump was in pole position to retake the white house, market sentiment went up. what do you think the mood will be like today? it is very little different today. there hasn't been a huge market reaction. that is because we don't really know how kamala harris�*s endorsement byjoe biden will affect polling results. she is still to

officially gets the nomination or appoint a vice president. does she have the time or the support to win the white house? we will have to wait to see how the bulls play out over the next few weeks and months to see whether trump is in that pole position or not. that is what is going to determine the market reaction, because there is this perception that he would lower taxes if trump was to win the presidency, and he could hike tariff significantly. that would put us prices up, that would mean that the us federal reserve like to cut interest rates rates by less. that is what the market is reluctant is to price out this morning because it is uncertain as to whether that polling position will be altered significantly by the news over the weekend. why might investors prefer donald trump? we do normally expect republicans to be more business friendly, but he wants to introduce tariffs on all imports into the us.

it depends what businesses are looking at. if you're looking at fossil fuels, looking at. if you're looking at fossilfuels, is something looking at. if you're looking at fossil fuels, is something that president drop if he were to win will probably endorse. for instance, he wants to bring a lot of manufacturing home. we have had evidence of that during the biden presidency with the inflation reduction act, for example. if it was to be more the make america great again, that made in america stamp on all goods in the us, it is likely to be those more old—fashioned manufacturing firms old —fashioned manufacturing firms which old—fashioned manufacturing firms which could benefit. there are different types of stocks that the market would be interested in if trump was to remain in pole position in pap white house race. that also comes back down to interest rates are likely go to. because he would

lower taxation and raise tariffs, that suggests a stronger dollar and higher interest rates. what's the value of stability? it was hardly stable last time, was it? the markets don't like political instability. the markets to have the advantage this time around rather than the last trump presidency and that we have a decent flavour of what he is like, what policies he is likely to push and he has more experience in thejob, too. in terms of geopolitics, that is something which i think all investors are going to fear a little bit more, concerns about nato for instance, does he really mean he wants a more isolationist us currencyjust trying to make other nato members pay more for their defence. to make other nato members pay more fortheir defence. it to make other nato members pay more for their defence. it is difficult to determine at this point. his

comments recently in taiwan, will that emboldened china in their position in respected thai one? it is difficult to measure trump and a lot of these policies, but geopolitics is something that a lot of investors will be fearful about in the next four years if trump was to win the presidency. jim. in the next four years if trump was to win the presidency.— to win the presidency. jim, thank ou for to win the presidency. jim, thank you for your _ to win the presidency. jim, thank you for your time, _ to win the presidency. jim, thank you for your time, as _ to win the presidency. jim, thank you for your time, as always. - let's turn to the aviation industry now because there could be some cheaper airline tickets around in europe this summer. ryanair, europe's biggest carrier by passenger numbers, say fares for its key summer months will be "materially lower" than last year. it comes as the airline reported a slump in earnings between april and june. profits after tax fell 46% compared to the same period last year. that was way worse than investors had been expecting. airline consultantjohn grant told us the results show that the post—pandemic travel boom

appears to be over. it's not a great set of results. yes, half of easter fell into the previous financial year, but notwithstanding that, this is showing the trend we've been seeing across the us carriers in the last couple of months is now in europe, where fares are lower. there's excess capacity in the market. and if ryanair, who are widely regarded as best in class, are delivering results like this, then it's going to be a bit of a worry for some of the other airlines who will report in the next couple of weeks, as well. ryanair are the masters of creating demand, but they've had to dig deep and they've had to take a 15% reduction in average fares to maintain their load factors. other airlines may have taken different approaches. they may have reduced capacity. lufthansa have done that, for example. so they've played at the other end of the market to see

if they can maintain revenues with less capacity. but sometimes airlines become hostages to capacity and the number of aircraft they have, you know, they've got to operate them. if they've got too much capacity, then the margins can erode very quickly. let's stay with aviation because bosses from the world's top airlines and aircraft makers are gathered in farnborough just outside london for the annual air show. there is massive pressure on the industry to clean up its act as part of the drive to net zero. electric and hydrogen planes are both a long way off, so the industry is focusing its hopes on so—called "sustainable aviation fuels", made from waste or renewables. our business correspondent theo leggett reports from the air show. we do test different types ofjet fuel, including sustainable aviation fuels and safs. at the university of sheffield, researcher ehab ahmad is preparing to fire up a smalljet engine. it's being used to test new aviation fuels prepared in a laboratory next door.

the university has a research centre dedicated to developing and testing so—called sustainable fuels. we do have the live data feed from the engines. they're made from renewable sources such as vegetable fats or waste products, instead of crude oil. using them reduces the amount of fossil fuel being burned and therefore reduces pollution. from environmental perspective, it is day and night. so you do have in principle the co2 should be a net zero, so there is no more carbon dioxide added to the atmosphere. but there is also another benefit. it is the non co2 part of things. for example, those particulates, or the smoke, that comes out of the engine. well, here in the laboratory you can see what all the fuss is about. i'm holding a small bottle of synthetic aviation fuel. this one was made from waste vegetable oils with a few secret ingredients added. as you can see, it's a clear liquid, looks a bit like water,

but it has the same properties as aviation kerosene, except this is made from renewable sources. sustainable fuels can be used by existing aircraft. virgin atlantic flew this boeing 787 across the atlantic last year using nothing else. that means they offer a quicker way to cut emissions on long journeys than other technologies, such as hydrogen power or electrification, which simply aren't ready. the technology solutions for sustainable aviation fuel are already available and certified for use in aircraft, so it's really about getting sustainable aviation fuel at scale across the globe because this is a global industry, at an affordable price. that's an issue which people within the industry gathered here at farnborough are grappling with. sustainable fuels are currently in very short supply and they're also very expensive. green campaigners insist their impact will be limited. there are lots of different types of safs and some of them are better environmentally than others.

but the brutal truth is that all of them are available in very minuscule quantities right now. conversely, right now, airlines have thousands of new planes on order and all of them will burn fossilfuels for at least the next 20 years. governments, aerospace manufacturers and airlines all agree that sustainable aviation fuel has a big role to play in cutting emissions, but making sure that there's enough of it and that it's actually affordable, that's one of the biggest challenges the industry is going to face over at least the next two decades. theo leggate, bbc news. let'sspeak live now with theo at the farnborough air show. theo, what else is on the minds of aviation bosses at the show this year? not as much hardware as you might normally expect because boeing hasn't brought any jets

normally expect because boeing hasn't brought anyjets to the show. it is choosing to concentrate on resolving its very well—known safety and quality control problems instead. the first big headline from the true today has been from boeing. korean air has that it is going to buy up to 50 large aircraft with a price list between 4 million —— between 4— $6 billion. there should between 4— $6 billion. there should be some orders from airbus tomorrow as well. last year was a record year. we are not expecting quite that many orders because boeing and airbus can't build any more quickly than they are doing at the moment, anyway. boeing has its well—documented problems and airbus has supply chain issues. although they like to put on a front and show they like to put on a front and show they are selling claims, there were quite like to slow things down a little bit as well. in quite like to slow things down a little bit as well.— quite like to slow things down a little bit as well. in terms of the summer months _ little bit as well. in terms of the summer months ahead, - little bit as well. in terms of the summer months ahead, we - little bit as well. in terms of the | summer months ahead, we have little bit as well. in terms of the - summer months ahead, we have heard from ryanair with some pretty bad

results, how worrying will that be for the rest of the sector? for the aerospace — for the rest of the sector? for the aerospace sector, _ for the rest of the sector? for the aerospace sector, they _ for the rest of the sector? for the aerospace sector, they are - for the rest of the sector? for the | aerospace sector, they are looking to the medium and long term. the airline sector is cyclical. you have people with money to spend to want to go on holiday, that is what we have seen over the past few years after we have come out of the covid pandemic. then the cost of living comes into play and people don't want to travel so much so prices come down. the aerospace industry is looking at the long—term future and there are more and more people wanting to fly so we will need more and more planes. stay with us here on bbc news.

hello from the bbc sport centre. america's xander schauffele has won his first open championship, adding the prestigious claretjug to the us pga championship title that he won in may.

schauffele becomes the first player to win those two majors in the same year since rory mcilroy achieved the feat a decade ago. england'sjustin rose kept himself in contention throughout the final day at royal troon, but finished in joint second place. ben croucher reports. he is the olympic champion, the pga championship and now xander schauffele is the open champion. when you shoot a six under par to win mha for the second time in three months, that is some pedigree. we started the day with billy horschel in the lead. justin rose challenged at one point. we had a 4—way tie for the lead and were set for our titanic trestle, but one by one the challenge is fed away birdie by birdie, xander schauffele clenched his grasp on the claretjug ever

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