>> germany rejoice. they raise the golden trophy for a fourth time. israel warned there could be .ore military strikes in gaza palestinians are fleeing by the thousands.

we will talk about business in just a moment. super mario. one-zero. a fourth world cup for germany. i imagine frankfurters are waking up with sore heads this morning. for the firstt time in generations england supported germany. they thinkws what about argentina. >> here is the question area does germany get an economic boom? sales for sure. happened in the eurozone. maybe it's not the greatest of omens. else have we got? >> looking at the u.k. tightening potential on foreign

we had him talking about how he wants to reduce wiggle room. astrazeneca again. how much can we make a financial penalty? they have got until friday to agree to the price tag. >> they have indicated a value of 53 pounds 20 a share. they are in detailed talks. recommend andg to offer. these heads are giving an indication that at least the two companies are talking with each other. >> they are lucky. it is their fifth and hopefully final offer. last are saying, we want you to sit down.

we could get a deal here. talks thate detailed this has gone further. out.need to work them >> a hefty price tag. that is more than 31 billion pounds. they were originally offering 51 pounds 15 per share. now they raise it 253 pounds a share. we understand that is pretty ok if you are a shareholder. >> these are not small increments. know it is something good. when you have a tax rate north of 20% and you can bring it down they are worth paying for. the morning.ore in we want to take you to the largest air show taking off in the u.k. today. they already have 20 years worth of orders on the books. anna joins us with more. in as going to come

minute. what is going on? >> i apologize. sorry, i couldn't wear the , but i have got my aircraft which i have been actively using. i was hoping i would be able to spot that one today. maybe later in the week. the jet made by lockheed martin and others. ba is very crucial. it is a supersonic jet with vertical landing capabilities. it can go straight up and straight down. back in june of fire in one of theengines in florida meant

whole test fleet had to be grounded. we are waiting for relevant approval. it's a big international improvement. it has got australia, canada, the netherlands, norway, and turkey -- all of those involved, and they are going to be ordering a number of these aircraft when they come into service. it is a very expensive project. now they are increasing questions about dates be following this engine fire. forill be a disappointment the organizers if it does not make it here. >> this year is really no different at all. very much politics is at the center of things. murray much buyers are at the head of the technology.

the russian delegation getting quite a bit. russians are finding it difficult to get visas to come to the show this time around, manufacturers,t there have been no official invitations to delegate from russia. this opens later to the public. people can buy tickets. that is not to say there won't be russians, but they are not expected to be here in the numbers they have been in previous years. in terms of major themes, you mentioned the seven-year order backlogs many of these manufacturers are sitting on. toy have already committed the value of $1 trillion. can they really afford to take more orders? there is concern about overcapacity at the moment.

air france and lufthansa getting profit warnings. you can see one of the dreamliner's behind me. and could be announced. -- new planes could be announced. this seems to be where a lot of new flow might come from. china makes more energy efficient of the airline in the fleet for some time. that would ramp up the pressure on boeing and the dreamliner behind me. they are taking wide-body engines with only two and trying to increase

competition. we will see new orders. expectations a little lower than perhaps they have been. we will see new orders. could leasing be at the heart of that? back to you. thee're looking forward to big interviews through the morning. in theelis activities gaza strip has entered the seventh day. the u.s. and egypt have offered to broker a cease-fire. our middle east editor is live in tel aviv. the latest? >> rockets being fired from the gaza strip into israel. israeli airstrikes continue as well. a drone was shot down by the israeli defense forces, apparently sent out from gaza. carryingay it was

explosives and taken out by a patriot missile. are calling this operation protective edge. they are trying to prevent rockets being fired into israel and to weaken the infrastructure of hamas and other groups. it doesn't appear to be that successful because these rockets are still being fired into israel. the death toll is rising. the human says about a fifth of deaths are children. 17,000 palestinians are fleeing their homes in the northern part of the gaza strip yesterday after warnings from the israelis that they would be targeting various places. egypt and john kerry have offered to initiate a cease-fire, but when you still have tanks coming to the border with gaza and israel building up for the possibility of a ground invasion, a cease-fire does not

look like it's on the table anytime soon. >> israel's prime minister benjamin netanyahu clearly focused on gaza, but he has not forgotten about it ran. tell us about the latest. rane never forgets about it -- i ran. he says they are training and financing those militant groups. they are trying to build a nuclear bomb when he has sent his brother to talk in vienna. don't expect any results. the deadline is july 20. it can be extended, and it looks like it will be because john kerry has said a big gap remains between what the u.s. wants and what iran wants. hague saying do not

expect any breakthrough today. >> thanks, elliott. >> just want to get back to those breaking headlines. they are getting close to a deal. we did have an offer of 51 pounds 15 a share. now we see that shire is willing to recommend the proposal at 53 pounds 20 a share. they are in detailed talks. it looks like we are getting close. >> this is the fifth offer. clearly they are desperate for the tax incentive. you could cut down to 13% if you make your legal address the united kingdom. that is where they are pushing for this deal. shire is based in ireland but would shift its address to the u.k. shire shareholders would get 20% of the whole company. this is the standout. you want been saying, to value us. this is all about hyperactivity,

adhd. they provide drugs for that, not only as a tax incentive. they get diversification because they are very dependent on certain drugs. they want to have a greater pool to get their revenue stream from. >> they have a will of cash overseas. >> when we talk about these merger stories they are two components from the u.s. side someone argued was faulty u.s. policy. when they actually want to bring the money back they pay a higher tax rate. >> why don't they just change this? eric cantor is not going to hold .nto his seat a lot of people thought he had deals with the democrats. if you are a republican and seem to report the democrats on anything, it looks like it is

not going to happen. it looks like more deals are going to happen because of it. >> there is a lot of cash. it's great for shareholders. unclear how good it is for sounded best and long-term thinking. >> we actually have the conservative government saying it cuts corporate tax rate even further. how many more companies can we rule over? is a july 18 deadline to get a deal done to find an agreement with shire. if not they are going to walk away. i imagine this is going to pick up. after the break we go back to the middle east. -- whatwar in syria else? our next guest says the entire arab world is in a state of turmoil. we talked to the ceo after the break.

>> welcome back to countdown. it's time for company news. lint agreed to by russell stover's candy. it is their biggest purchase in

history. this makes lint one of the number 3 -- the number three manufacturer in europe. a chinese company is buying pizza express for one and a half million dollar -- 1.5 billion dollars. the salvage of the costa concordia cruise liner. hitting aank after reef in 2012. elcome back. the celebrations behind. >> we're talking about serious issues as well. to beitical risks appear increasing on a daily basis while islam makes forces remain -- islamic forces remain in control. rising tensions between shia and

sunni. meanwhile in israel fighting andinues between hamas theeli forces. international community is pushing for a truce. we aree on these matters joined by the chief ceo. for joining us. there was so much to talk about this morning. some signs of elliptical progress, dutch political progress, or is this an illusion? >> there is some progress. the fact they did not arrive at a resolution is not a problem. we know there is a lot of negotiation. the points of progress that were important to take note of, they have settled on a consensus candidate for the speaker of the house of parliament, so there is a name that emerged that is

agreed upon that is a good name. appears that they are requesting mr. malik he not present himself as prime minister. that is progress. the meeting is adjourned until tomorrow. it will take about a week. this is progress. >> you think maliki will accept that? >> this is a negotiation. a vest news is his own party has asked him to stand up. there will be more challenges. once the government forms they quick he begin to form policy that convinces the sunni to play ball and to join them rather than to

continue to support. then there are security challenges which are by no means resolved. the iraqi army is consolidating. they have probably spread themselves thin through the initial success they had a couple weeks ago. reconfiguring their positions again. this is by no means the result. take part.y needs to >> are they too far away? you had until yesterday sunni militants near baghdad. they seem to be saying we are near your territory. >> the risk is it gets more out of hand. the other risk is if there is a surprise on the military front

this could destabilize markets. so far the comment i would like to leave you with is there is not an imminent risk. companies in iraq and international companies don't appear to be sending down their staff. has more tos two -- this.h contracts than if there is no government formation, if there is a surprise on the military front, if there is a surprise attack or , then we can see an upset of the scenario. >> stay with us. we will talk more about the oil market and the tension in the gaza strip. that is coming up in two minutes time.

>> welcome back. i am joined by hans nichols and caroline hyde. we are joined by the ceo. we talked a little bit about the oil market. when this first progress they were moving to the south. they werecerned pushing up oil prices. if that situation stabilizes, has the fear gone away?

can we get used to a new normal iraq?ack -- >> i don't think the fear has gone away. i think both sides are regrouping. the question is whether the army will be able to turn back some of the successes or not. with respect to oil production, what we know is even if they entered the shia parts where the oil is reduced it would be hard to retain them, which is keeping prices. what is alsostood. understood is there is going to be more volatility on the horizon. we are going to have more bumps toh respect oil prices due the situation in iraq. also the situation in libya is not improving. there is a gap in production. what has occurred over the past

couple weeks for sure is the long-term capacity for the expansion of production in iraq has come down. initially the understanding is around 8 million to 9 million barrels a day. that has been revised down. today they are producing less than they were producing a few weeks ago by around 200,000 barrels per day. briefly to israel and gaza, you say this is a more dire situation than in the past. why? >> only because it exacerbates the situation and takes it back to a scenario of violence that is probably more serious than ever because of heightened tension across the region. people are asking about a new intifada.

to me there is a new intifada across the arab world. the only solution is peace. thet of work was done on peace process. it would be a real shame.

>> welcome back to countdown. it's time to head out to manus cranny for your affects check. >> the dollar is near lows. we lost 10% of the value. 100.8 two. level is all-timeown from the low of 100.76. the 50 day moving average drops the 200 day moving

average. keep in ion that and janet yellen's testimony over the next two days. rally on theor a kroner because we have reached wherelection point of they have cut their rates. year it isof the down to 8.9. back to you. >> 7:31. president addresses the european parliament for the first time since elections were held in may. what are they going to do with it? that's the big question.

and a person with direct knowledge of the matter. the deal may include a payment for the justice department. the u.s. justice department is said to be busy. reports some times traders have been offered immunity in exchange for information about their superiors. we are going to the air show. and the winter should be on the ground. we are disappointed. >> where is the top gun? >> and i will bring us up to speed. will bring us up to speed. >> i hate to wind you. what is not disappointing is the

news we have already seen. we were talking about how it is possible they're going to announce a new variety of a 20-year-old aircraft from airbus. we have had confirmation of that. choices going to be rolls-royce, something our next guest will be pleased about. everett. d by paul thank you very much for joining us. you are pretty pleased they have chosen rolls-royce engine. >> that is fantastic. we are having a reasonably successful time. this will only add to that. >> no f 35 today. is that the disappointment to those organizing this? .> we were all hoping we are still hopeful for later in the week.

is in theand this midst of its development program. clearly there are going to be challenges. it's right we take the safety first option. eagle are working really hard to try and make something happen at some point this week. >> it still possible it could turn up. it has been widely reported certain russians have been finding it more difficult than usual to get visas to come to the air show. i have seen there are some russian product on display. about this. we have seen the backdrop of this event. >> i think the geopolitical tensions are above my pay grade, but we have been conscious of the situation in the ukraine and the international community's response to it. successful a relationship to russian businesses. clearly there are a range of

measures the u.k. government and other international governments a consequence of the activities in and around crimea. >> what kind of damper does it put on sales by u.k. businesses? the fact we don't have a russian delegation this time around? there are u.k. businesses that made money selling to russia, aren't there? >> i think business will be as usual. i'm not sure there will be a huge impact in terms of the u.k. business. fantastic part is the global business is here. 39 countries will be here during the course of this week. that means a great opportunity to bid -- to do business with companies around the world. we are a global leader in aerospace. products many

countries want. this is a big week for us. >> this is a sector that is growing faster at the moment. >> the latest we have is 10 u.k. faster than the economy generally. i think that reflect positive global growth. we are seeing demand for air traffic passengers grow. the demand for new aircraft is also growing. boeing and airbus are increasing their rates of production. that means new and better business for companies in the u.k.. >> are you looking for big orders this time around? some analysts have been talking about slightly moderated expectations compared to the last couple of years. >> we saw last year was a huge year in terms of new orders. i think we will more likely see those from faster growing parts

of the global economy. the middle east, southeast asia, south america. i think we are seeing a situation where we have got record backlogs in terms of aircraft order. for most of the industry it's about how can we raise our level of production and live consistently for those customers. showcaseas a domestic years ago. it's now an international showcase. international contributors come here. how do they stay relative when there is so much competition from newer upstarts? >> history is important. understands what it is. that helps us. also i think it's a place where everyone is comfortable coming. some of the shows in other parts of the world tend to feel more

parochial. strong regional players have a big part to play, whereas this is a genuinely global even. everyone from everywhere in the world likes coming here. we have to reflect that being close to london is quite an appeal. everyone knows everybody will be here. they want to be here because they are worried about it. they do not want to miss the opportunity of getting the early side of things that are going to be important to them during the or 18 months. >> things, the ceo telling us about the importance of the industry to the u.k. economy. back to you. >> all very exciting. the weather.f the sun is out.

it's looking good. come, you are watching countdown, but who is watching you? emerginge the surveillance laws after the break.

>> time for company news. prosecutors in shanghai have inicted the foreign company china. according to the official news site the couple were indicted obtaining personal information on chinese citizens. glaxo is under a bribery probe in china. central bank told them to hold a board meeting yesterday to a point a chief officer earlier than planned. the biggest shareholder in the bank proposed new executives after the july 28 board meeting. the parent company missed some .ayments on short-term debt boeing is working on a modification to fit more seats into the 737 narrowbody aircraft

model. they are seeking to pack as many customers as possible on short haul flights. they will seek as many as 200 in a single cabin. they are vying to squeeze more people. client such as ryanair seek lower costs per plane. welcome back. more peoplee hyde. in planes? >> we're dreading it. takeow we are all going to it. >> you were on easy jet coming over here. >> i said that was off the record like there is jean in your coffee. in your coffee. >> there is just caffeine in my cup. >> in the uk's surveillance legislation was said to be in parliament. they will give you greater grip

on personal communications. automakers say they are just existing legislation. overseas companies fail to comply with surveillance warnings, the new law would confirm the ability of the u.k. to impose sanctions or penalties on those companies. is this a repeat of the nsa? >> this is a remarkable story. that seems something that will probably give lawmakers's. edward snowden is part of the vernacular. this.ay down in he gave an exclusive interview to the guardian. he has a variety of comments. have written their draft. when edward snowden is taking shots at something at this level it's going to raise issues over

lawmakers. then you can have the debate over whether or not you should do it. is what ion of speed think is alarming lawmakers. >> you won't get the content of the data. if i am secretly calling caroline hyde after hours you will get the time and the amount of times i have called her but you won't get the content of the actual call. the interesting thing is the cross party support. democratsave the lib supporting it. it's going to go through fast. >> if it goes through fast we can have a variety of discussions about why that was. were they concerned about being blamed for another terrorist attack? i wish i remembered the latin phrase, but i don't. lars --back to, are laws made during war more swift or more just? the it's a dangerous world.

speed at which this is going through, i think a lot of questions will be raised. >> it will be interesting to see the impact from foreign companies. will we hear from the likes of facebook or google? problem fortes a the big companies. this puts the onus on them. they already have a problem statewide. you have to ask yourself, do they really want the legal attachments? do we trust companies more than governments? facebook sells a lot of ad against your data, against the flowers you sent caroline. google wants to organize the world's data. companies like information. do we trust them? >> a really interesting app. there is one called citizen me that helps you choose who you sell your information to and for

how much. it will be interesting if the individual starts to reclaim some of that power. one thing i like is this is called drip. it is known as the data contingency bill. >> you would think they would have thought of something a little less orwellian. i don't get paid for making acronyms. >> it's all about shyer willing to recommend the proposal of 53 pounds 20 per share. aty are valuing the deal $53.7 billion takeover. you have a stock of eight percent at the open this morning. done now? finished? >> fit time lucky. if the fifth time they have put in an offer, and it seems to be welcomed at last are the board of shyer. they have said they will likely recommend the deal going forward.

this is 31 billion pounds. this is more than $51 billion. attractive? corporate tax a key issue. you're going to move your legal to the from ireland united kingdom. why bring it to the u.k.? are clearly enough executive offices to make it. it is about diversification. bbvie is very much focused on rheumatoid arthritis drugs. you get on board with a company like scheier, somehow you are in rare diseases. you have more diversification. it's about not having to re-patriot. arthritis those snowboarders. no borders.- knows

>> are they going to change anytime soon? >> the short answer is no. are going to talk markets after the break. european stocks fell more than three percent last week. where are they headed this way? we will speak to the chief analyst after the break.

>> welcome back to countdown. joined by hans nichols, caroline hyde, and michael houston. michael, finally we might have an agreement. what does this speak about the wider activity to mind does that justify where markets have been? certain extent it does because you have all this cash overseas. the bigger point from my perspective is does this throwback into play another deal? >> especially when you have them saying, we want more stringent rules on foreign takeovers. we want to get rid of the wiggle room. doesn't actually make a deal more likely? the british public knows pfizer would have to either maintain the jobs it promises to or pay a financial penalty. >> you are talking financial

penalties. how big? it reminds me, if you find someone 60 grand for biting someone. sides.ave to be big what wider message does that send to businesses about the u.k. is open for business? i do not think it is enforceable. >> let's talk about banks that might get a big fine a little later. they were talking about a deal with the justice department. do you think this news comes out with the earnings, or is the earnings a bigger picture? >> we have had very low trading volumes. i think investment is going to be down quite markedly. if you factor in the u.s. economy -- i do not think they had a pretty good quarter in q2. if you look at the housing market and durable goods, we have not had that sort of rebound. i think it goes into the u.s. economic recovery.

what other fines are being hidden on the balance sheet? we have the foreign exchange probe, which we were talking about a little bit just now. >> what does that signal for you that we are going to see more hefty fines from the united states? >> i think so. article over the weekend. if i was and affects trader, and i used to be -- i would be shifting uncomfortably in my feet, not that i have anything to worry about, but i think it is guilt by association. >> here i thought they never shift in their seat. you know you are on the wrong side of the trade. those guys can see it quickly. if you are on the wrong side of the trade you answer that phone. talkingd a guest earlier about the portugal situation. look at this in isolation. raise somen't did

questions about whether the eurozone is out at the moment? >> i think that's a mistake. i think the banking crisis has not been resolved. i think there are a lot of hidden nasties on the balance sheet. look at the recovery in europe. >> even with mario draghi promising more credit, a trillion dollars could go to the banks -- should we be worrying about nasties? >> a few trillion dollars failed to solve the banking crisis. what does another 1.4 billion do. a littleicks the can further. look at industrial production. -- portugal'sio economy hasn't really grown in the last 14 years, so where is

the growth coming from? >> thank you. a busy week. u.k. unemployment wednesday as well. on the move is next. i will bring you that in two minutes time when the markets open.

>> welcome to on the move. we are just moments away from the start of european trading. futures pointing to a slightly higher open after last week's sincet decline on record march. here with me now is in the redwoods, caroline hyde. let's start with you. >> we are at the air show. aircraft are starting their engines all around us. we have had news about airbus. orders see a raft of

coming through this morning? caroline, what are you watching? >> it's all about shyer -- shire. the drug's maker based in ireland. today we get the go-ahead. it looks like they are willing to outsource abbvie. it looks like the board is willing to accept such a deal. we are looking for the share price to rise even more. now i am moving across to tel aviv with elliott. >> it stays seven of israel's operations. hamas sent a drone from gaza into israel today. shot down by armed forces. policy view of the

earthly better hold that palestinians are fleeing their homes. >> it's going to be a busy week for european markets. you have got unemployment in the u.k. on wednesday. you have janet yellen. she speaks tomorrow and wednesday in her semiannual testimony. i will be watching that. here,have equities rising being driven by the shire news. bank of portugal telling them to crack down the new ceo and cfo. janet yellen's testimony is going to set the tone in terms of the federal reserve. mario draghi, will he talk more in terms of targeted long-term offerings of cash. citigroup and j.p. morgan will come out with earnings. i think it's a reflection if you take yourself to the asian session.

theas transferred nicely to european trading session. in the u.k. you're going to get jobs list numbers. mark carney is going to be in front of the treasury select committee. ndt going after russell and stover in the u.s. we don't know what price they have paid, but the deal will take them up the stakes in terms of the biggest u.s. boxed chocolate manufacturer. we get the confirmation they are prepared to back the deal offered at a price of 53 pounds 20 pence. tesco has an upgrade from cantor they are trading at 282.35.

another thing to decide they are coming out with some of their views. they say they have reached an inflection point from the data last week. they are making big calls here. they are talking about the norwegian krone are and the swedish krona are. 8.9 by the end of the year. this in theory will be one of the stronger performances for the rest of the year. investors let's bring the chief executive of the private investment group. welcome to the show. morning.are high this can we just move on? >> we keep moving on.

we have survived so many crises. what is another. approach.ical the real problem is the guys who have got the dice in their hands keep changing them. they can do whatever they want. they are making new rules all the time. that is why financial crises, when they are isolated and there isn't anything else going on, rules get change. life moves on. >> there is a saying that markets can say irrational. you have just seen it get higher. does it change anytime soon? >> it doesn't change. i know i am going to die. that doesn't mean i have to be bearish all my life. you don't have to be bullish even though you think equities are going up. they think it's difficult to

calculate the understanding of it. there are good reasons for the markets to go down. good reasons would have to be a confluence of events where you have financial crises allied or possibly caused wide macro political crises. those are building but still containable, which is why financial crises are not causing any volatility. about the federal reserve and loose monetary policy. janet yellen speaks this week. they are talking about the emerging inflationary pressures. if you asked janet yellen that question she will call it noise. is this week the turning point where she has to introduce two-way risk? is it her job not to do that? she has to take some responsibility for that complacency? >> he is a political opponent.

she is there to make sure they stay in power as long as possible. there is a real pressure to do what is right for the country. the problem janet yellen has got is the central bank views itself as the bank of the world. it's not just a domestic policy. it's a global policy. what happens in america happens elsewhere. she is setting the policy for the world, which is why the dollar has always remained soft. the american monetary policy is set to the global growth policy. readingtherwise the would be firmer than it is in europe. it?isn't there is suspicion american monetary policy is to the lowest common denominator in the system . >> if federal reserve policy is

are they inng why this regard? >> they cannot solve every problem. they are trying to foster growth. there was this myth that if they get growth in china they will be able to sell goods. china sold it's good to everyone else. they have tried to save the world. they feel they have this theonsibility to save world. american monetary policy is going to be that much softer than perhaps domestic conditions warrant. >> what is going to make you softer? >> nothing at all. >> here is a look at what is coming. new jets.l two the race to dominate the skies intensifies. citigroup plans to pony up $7 billion. speaking of deals.

the takeover is on the table. shire confirms it is in talks with abbvie. you can follow me on twitter. ♪

>> welcome back. this is on the move. london.igher in

we are going to talk about airlines. after years of soaring demand for new aircraft, plane makers are under pressure to deliver. never beenhas longer. >> in the last decade the world has gone crazy. while airline makers have gone shopping, plane makers are struggling to keep up the pace. there is currently a backlog of 11,000 jets. that's it could lead to reporters of all debts today. it's no easy heat for -- feed for what is one of the slowest moving industries in the world. assembly requires 600,000 individual parts and 60 gallons of paint. it takes 42 days to produce just

one. boeing and airbus hope to produce 1800 planes every year by 2018. that's equivalent to about five jets per day. over the next two decades the manufacturers predict the number of planes in the air will double to more than 30,000. trillionrice that is 4 dollars worth of planes, equivalent to the entire output of the german economy last year. >> plane makers already have seven years worth of orders on their books. what's on the agenda for the air ?how in farnborough there has already been a few pieces of news. bring us up to speed. >> absolutely. airbus kicks things off in fine style by announcing this. new option.y means

they are taking an aircraft that has been around for years and giving it a greener more efficient engine. they are taking existing models and just improving their efficiency. thisis attractive is that is an aircraft that can fly long-haul but only requires two engines. airlines such as air asia, tony was speaking to me saying he thought this would be a killer aircraft. he has been putting pressure on airbus to deliver this type of theraft in the run-up to event. we are expecting the u.k. government to come here today. it was widely discussed there would the ideal by the u.k. government with the prime minister talking about the need to invest in cyber security.

320 golf buggies are on site to transport the executive's around. 650 meters of insulation to keep fromrivate conversation prying ears. >> let's quickly talk about the f 35, which was supposed to make its debut at the show. i believe it hasn't arrived yet. shall i give up hope? >> there is a possibility it can make headlines at the week. there was an engine fire in one of the fleet in florida. it's very late. in a stringlatest

of disappointments in the launch of this. excitement.be great it's the first supersonic jet landingoing to have potential. it will be interesting to see. >> thank you very much. the chief us is executive philip. you look at these markets. i know how you feel about them. they can't be justified. i guess you would define them as a bubble. >> they are creating consumer into which is translating consumer production. they have got to get it from else where. it's the new monetary policy. traditionalk about

monetary policy. is it coming from else where? >> if there is a rate hike from consensushat is the view. is going to be building crises and some real crisis. look what happened in russia. look what happened in china. you need the confluence of them to happen. then you need reactions such as s.e bank account >> arkansas will a bit. then they brushed them off. japan and china has been under the surface for months. what is it going to take for geopolitics to really play out

in their sustained way? >> the reason i am more concerned about macro politics is i don't think there is a sheriff in town. play.d guys tend to i expect more problems to occur. sometime in the next read you five years you will get a crisis. you will want a hard currency, not a paper one. diamonds. into >> gold is difficult to use. it's not mobile. it has to be stored in the banking system. diamonds are historically proven. it's mobile. it's usable. demandt terrific supply credentials. >> if i am watching this right now, and i hear somebody saying to buy diamonds, we are not talking about going to the local dealers.

>> we are talking about the largest stones. we are looking at fractions. this has the right price code. importantly it is open to the fact that a mining company should not be run by minors. get them a shovel but run this as a business. that is what i like about this company. it hasn't got any legacy issues. it's about to start production. they have got legacy issues. they have made mistakes in the reallyhis is a attractive looking company. >> thank you very much for joining us. just ahead it is vince cable. he says the company will tighten takeover rules for foreign bidders. takeover we will debate next. ♪

>> welcome back. u.k. a little bit of news about volkswagen. conference. a press the company plans to invest $7

billion. the news about expanding to north america. we will bring you the news as it comes. the stock is up 0.54%. the u.k. is set to rush in a lot to cement its right to personal dedication. going to get more details on both of these. caroline hyde is here along with hans nichols. he is talking tough. he is calling for less wiggle room. >> they are going to get tougher on foreign takeovers. to make the most of our tax rates you have to stand by certain promises, or we could financially penalize your government ministers could overrule any such takeover.

it's all about jobs. if there is a particularly , if we werempany , we could say to that company you are not allowed to buy it unless you promise you will maintain the status quo of jobs. the u.k.ment government can already override if you haves concern about media plurality. ifce cable wants to add supply chains are crucial, if the motive of tax avoidance has an effect on jobs, the government could call for key promises. thehis must be related to

failed pfizer deal. >> you are right. sure, it didn't go through butuse of rice quibbles, also we wanted promises they would maintain research and development in the u.k. it's weird to have that promise with numbers assigned to it if the u.k. had been able to slap a financial fine. lived up to't promises maybe the deal would have gone through if we had known we could really hold pfizer to account. maybe this will make corporate takeovers that much easier. we have been bitten before. cadbury's promised they would maintain plans to build a plant.

this is why vince cable is pushing forward this rule. >> it's the illusion of free markets. perception is everything. >> we're are talking about having clear rules of the road. we are talking about companies required to have certain regulations. the speed limits are posted people don't speed. in termsits are posted of eavesdropping or surveillance, people will be less likely to do illegal surveillance. it is unclear why they need to fast-track it. >> it sounds a lot like the nsa. someone who knows about that is edward snowden. >> they spent several hours. the criticism from edward snowden mobilized the british

eft. >> perhaps they are saying this is too fast, too quickly. we need to slow down and think about it. >> i think that's the point. you haven't got these voices of concern. are we going to get any roadblock to this legislation? >> i don't know. we don't know whether or not there are going to be real naysayers. the silence has been somewhat shocking. >> deal or no deal. we are watching shares surge after the drugmaker confirms talks with abbvie on a revised deal. details next. you can follow me on twitter. we will be back in just a moment. ♪

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>> welcome back to "on the move ." i am jon ferro in london. check on our markets for you now. 30 minutes into the trading day, this is how things are shaping up. you see equities a little bit higher. we have got some big important things. the big one for me is janet yellen. when does she give any kind of suggestion that, possibly, rates might rise? maness, will she ever? maybe not. >> it will come one day. when the complexion of that voting chamber changes. let's talk about three individual names. abbvie and shire

look as though they are going to settle a deal. shire would get 25% of a new company. 53 pounds, 20 pounds. lindt, the world's largest producer of chocolate has gone after russell clover. we are going to see a deal go through there. we don't know what price but it is helping the market. tesco up over 2%. time to buy. a target price of 325 pence over the next 12 months. store on saturday, looking mighty fine. >> i am going to bring you some of the top headlines from london. ecb president mario draghi addressed the european parliament today for the first time since may. he could discuss the ltro program designed to stimulate

the economy. economists forecast measures will hand banks more than 700 billion euros in cheap funding. russia and germany calling for renewed crisis talks on ukraine. in a meeting yesterday, president vladimir putin and chancellor angela merkel agreed that international representatives should meet as soon as possible. clashes between the nation posco government and pro-russia rebels have intensified since president petro poroshenko called off the cease-fire at the beginning of this month. israel is now in the seventh day of airstrikes against hamas in the gaza strip. thousands of palestinians have fled their homes in advance of a possible invasion. this will be israel's first ground assault on the territory since 2009. world leaders are appealing for a cease-fire. elliott gotkine is live in tel aviv. elliott, what is the latest?

great elements. we have more air raid sirens going on throughout israel today. more airstrikes. this morning, this unmanned aerial vehicle, a drone seemingly coming from the gaza strip, heading towards a southern city. it was shut down by an israeli missile but that could mark a rather worrying development from the israeli' perspective. hamas missiles, there have more than 1000 of them into israel. hamasjuries is all that has got to show for it and a small amount of damage. more manages to send drones, perhaps they might have more success in trying to kill people. certainly the death toll in the gaza strip has been rising steadily. we are at around 170 according to the united nations. about 1/5 of those are children. if there is a ground invasion,

that figure would inevitably rise. course, the israeli prime minister is focused on gaza. i guess he has got one eye on what is going on in iran at the same time. >> he has always got that one eye on iran if not both of them. he says iran is financing arming and training for thomas and other groups within the gaza strip which are firing rockets at israel. he says there is no doubt that iran is trying to build a nuclear bomb. those talks in vienna are going on right now. the iranian president sent his brother along. the deadline is july 20. iran wantsowers and to reach a permanent deal on its nuclear program in order to lift those sanctions against iran. don't hold your hopes up. those talks can be extended and the information we are getting from john kerry, william hague and the iranian deputy foreign

minister seems to be that these talks will not be resolved before the end of that deadline on july 20. it can be extended and those gaps may be resolved by then. we have to wait and see. >> thanks very much. that is going to be one of the leading stories in geopolitics. i want to turn to one of the leading corporate stories. a potential deal between sb shire.and matt campbell joins us now with the latest. you are in the know. what has changed since friday? >> we have the beginning of basically substantive negotiation's between these two companies made last week in new york. this is the first time that shire a really came to the table sincebbive -- to the table since abbveie made this proposal. they are willing to recommend

and offer at 53 pounds a share. sincesn't a huge pump where we left things last week. a lot of people expected this to go down to the wire. this is actually fairly straightforward as these things go. >> we have a deadline of july 18 and it looks like we are nearing a deal. the parties are talking now. is it a stretch to say it is a done deal? >> as we have all learned is ever m&a, nothing done until it is signed on the dotted line. this is certainly sounding a lot more positive than it was even a few days ago. i think a lot of people have been surprised by the speed with which shire has come out to say, we have an offer on the table. we just have to go through some of the finer details. this is certainly looking much more positive than it was. a abbvie looks to me like company that is keen to get a deal done. give me some color on the tax reasons for that. i get the tax reasons.

you are getting this tax cut north of 20 million and change. give me some color on that and why this is not just a tax deal. it is not just your traditional tax inversion deal. are keen on the abbvie to emphasize the strategic logic behind this as well as the tax logic. tax will lower abbvie's rate to around 13%. the other advantage as it would be for any large u.s. company is this changes the maps around offshore cash. currently if you are a u.s. company with billions of dollars held offshore, you can't actually use that for buybacks, for dividends, unless you are willing to take that 35% tax haircut. if your domicile in the u.k., it goes away. this is all about the verge of vacation. abbvie is basically a one drug company. you mero is one of the biggest selling drugs in the world but it is just one drug.

you don't want to be in that position. shire is much more diverse. >> m&a in pharma, much more to come? >> there is always more to come. we will be surprised again and again. this is partly driven by tax and partly by strategy. these are big companies. a want to make big deals. >> matt campbell, thank you very much for joining us this morning. brazil, they may not have secured a world cup win, but the country did score on a bigger front. we will see how the success could elevate brazil on the world stage. ♪

>> welcome back. this is "on the move." the pulse is coming up at the top of the hour. we will continue our coverage from the biggest aircraft expo of the year. we will be speaking to the biggest names of the business including the boeing chief executive. plus, how could we... about this? germany walks away from the world cup final with a win from argentina. we will get reaction from the former governor of argentina. we will look ahead to what the country's economy is going to be up to. all of that and more at the top of the hour on "the pulse." manus cranny is going to be your host. one month ago, everyone forecasted that brazil would win

the world cup. and the tournament would be plagued with problems. it came as a surprise when brazil suffered a defeat against germany and the tournament seemingly went off without a hitch. is this the sort of win for brazil? yes, no? ofare joined by the author "brazil, a country of the present." theng into this tournament, negativity was about the economy, the money spent on the tournament. brazil was going to win the world cup. coming out, the negativity is about football. is that a good thing? >> people are talking more about how things went well in the world cup, everything worked for the championship itself. the infrastructure work. there weren't big problems in the airports. or the streets or anything like that. there wasn't any problem with violence. thingsy big problem -- kind of worked out well for the country.

>> in that sense, was it a blessing that germany did win and not argentina? >> not really. i was a little bit worried if argentina had won. there were 100,000 argentinians in rio yesterday. there could have been some problems with people on the street. argentina losing helps everything to work out better. i don't think brazil was really and worked up as a rival annoyed with argentina. appalledrazilians just with their own team and don't know how to react for the moment. >> i remember having a conversation about the tournament. someone said to me, if argentina wins the world cup, they will need a correct -- need a helicopter to get out of the stadium. none of these things happened. some people are talking about political consequences. are we not giving the brazilians on enough credit? >> maybe. maybe the fact that brazil lost so badly.

in the end, people were making fun of brazil. media, seeo social what they did after losing the match, they were making fun of themselves. even after losing to the netherlands. no one was crying anymore. team.ant to change the a want to change the way national football is organized. that brought the attention out of politics. >> so you don't see any political fallout? >> not really. i think everything worked out fine for the government. there were no problems. is ahe government, that victory. >> what do you see as the legacy for this continent? >> it is a good thing to so that brazil can work a major event like that. people were worried about protests, about problems. there wasn't anything like that. it shows the world that brazil can host the event.

it shows that brazilians are happy to host tourists and have people around. and that brazil is willing to do that. brazilians were protesting one year ago and now they are altogether to show that we are together and the country works. that is what they want to show the world. >> united in disappointment. i want to talk about football. when i look at this brazilian team, it is just an absolute disappointment. i am used to seeing ronaldo. i didn't see any of these big names there. it was just neymar and nobody else. we talk about legacies from the world cup. everybody talks about spain. everybody will talk about germany. there is something fundamentally wrong in brazilian football. >> it is hard to know what happened. they put their hopes too high. it is really hard to understand

what happened this year between winning. the team worked really well back then and it didn't work this time. there are other problems in planning. a lot ofe using planning and comparing brazil with germany, the fact that germany trained so well. brazil has not. felipe has been the coach for a short period. so it is hard to think of brazil as a country that organized football for the long-term plan. maybe people start asking for that now and maybe they will start thinking about the world cup right now. >> just quickly, are you going to win the next one? >> i don't know. it is hard to know. >> if you asked a month ago, you would have said brazil. thank you very much. we are going to talk about the next world cup now. russia. the kremlin warning of your

reversible consequences after alleging ukrainians killed one of their citizens. vladimir putin met angela merkel to talk ukraine before the world cup final. let's focus on the world cup. ryan chilcote joins us now. >> russia is going to hold the world cup next in 2018. that presents a few challenges. first off, infrastructure. stadiums to be built in 11 cities. 12 of them across a space that is about 1500 miles. it is an enormous infrastructure challenge. three of those stadiums have already been built. one for the sochi games, one in moscow where the first of the games will be played. so, infrastructure a big challenge. obviously we saw issues with that in brazil. we saw issues with that going into the sochi games. the second big issue, we saw

this with brazil, the russians didn't do so well in this cup. they played three games and one bank none of them. -- and won none of them. they were in a week group. a have for years to build a strong team. everything else can go wrong when you're holding a world cup, particularly for the first time. all we have to do is think about what is going on with russia and ukraine. when you put that magnifying lens on all the media attention involved, what that can invite in terms of problems with your image. >> we talk about sochi and there was so much negativity around it. the negativity over this tournament was pretty remarkable when you look back on it and we see nothing really bad come out of it apart from the brazil team being appalling. is there risk that we start building up the next world cup to be something that it won't be? >> i think that is possible.

if you think about the sochi games, once the games got underway, some of the criticism -- and there was a lot of criticism in the run-up to the games -- it went away. people started paying attention to the sports themselves. in the lead up, all we heard about was problems with infrastructure, how bad those hotel rooms were, and human rights issues with anti-gay laws in russia. i think there is a real danger this time around going into the world cup, particularly with all the scandals to rounding the world cup and the organization of it, whether there is corruption or not. obviously very keen to put the focus on -- we are already ahead of schedule, we already have three stadiums built, this is going to be a great cup. that is in 2018. >> ryan chilcote, i expect you to be there. once i get them for me and

all my family and friends. you will be on the list. >> some company news now, citigroup in focus. u.s. authorities could mouse a $7 billion agreement as soon as today. that is according to a person with direct knowledge of the matter. the deal may include a payment of $4 billion to the justice department. the bank is also due to report second-quarter earnings this afternoon. tony capital has something new on the menu. the chinese pilot equity group is buying pizza express for about $1.5 billion. the u.k. founded chain operates in 13 countries. boeing is working on a modification to fit more feet into its 737 aircraft. the change is owing to discount airlines seeking to pack in as many travelers as possible. the aircraft will see as many as 200. boeing and airbus are trying to squeeze more people into jets.

coming up, more details from bowing. we sit down with chief executive jim mcnerney. ms. that conversation from -- don't miss that conversation from the biggest aircraft expo. we will be back in just a moment. ♪

>> welcome back to "on the move ." i am jon ferro in london. there nearly an hour into

trading session. equities pushing a little higher. hans nichols joins us with one more potential deal we could hear later. >> citi, 7 billion is the number. this deal appears to be done. five -- let me do the numbers real quick. the first four billion dollars goes to the justice department. and you have 3 billion -- 300 million dollars. only $2.5 million for the actual consumers. we all saw numbers bounce around. they are as high as 17 -- there is some great reporting this morning that the department of justice planned to hold a press conference jamming them on this. then they had that arrested suspect in libya. they didn't want the libya story to be overshadowed. clearly the department of justice, they are playing hardball. this is a lot of banks and it is not just mortgage lending. it is affect. when you look at what the banks

have put aside, is it it not? the risks are unknowable. >> when we compare fine for fine, the one thing you can there -- you can compare is won's fine to another bank. this is a big fine. >> what is the number for commerce? half a billion? bnp paribas is $8.9 billion. this is $7 billion. you can argue the mortgage crisis caused all this so those fines should be higher. clearing dollars for sudan or iran is a less serious infraction. but look, the big question, you talk to these bankers privately, no one knows what could happen with this currency probe. >> when you see the regulators of certain traders immunity, they are going after -- >> this is how you flip -- this is like we are watching the wire. you go after the little guys to get to the big guys.

that is what they are apparently doing. >> this has to be the biggest headwind for the financial services industry. is it enough? you may well see more of these banks put more and more money aside. >> earnings is a problem. a revenuees to not be generator that it once was. but these are big headwinds. the question is, are these one-off charges? do they put these out there and wipe their slate clean? we don't know that. earnings, about earnings later. nobody is talking about it. they are all talking about the fine. thank you very much. coming up, we continue the conversation. first up is airbus chief operating officer john leahy. then more details from bowing when we sit down with chief executive jim mcnerney. plus, john harris to talk about the defense market. all of that and more next.

in the meantime, follow me. we will be back. i ♪ . .

>> germany rejoices. it raises the golden trophy for a fourth time after a stunning world cup when an extra time. extra time. ready for takeoff. airbus unveils two new jets. we are live with the chief executive officer and rival ceo of boeing. a 31 billionck pound offer.