money flows back into wealth management despite a sharp contraction in market activity in the fourth quarter. speaking to cnbc, the ceo hailed the bank's turnaround. >> we really struggled, and we tried our best for fourth quarter since 2014 that's the magnitude of the trend that has taken place it should be really reassuring

we'll hear from the cfo stephan engel. that's at 12:00 cet. nestle in the green. they missed full year net profit forecasts, but the ceo says chooun remains a growth market it has not translated into slowing consumer interest. we also are coming out of a period of some underperformance in china over the past few years. we've made significant recoveries.

we'll be speaking to the ceo tom enders let's start going over some of the price action we've had on equities it ened on a more positive tone. a slightly mixed session in asia slightly positive hang seng. a little weaker sentiment. again, they are dominated by the back and fot between the u.s. and china of all the trade discussions. positive developments there with reports that in theory, we will find out next couple of days president xi zing ping will be attending the meetings some positive developments there.

stocks europe 600, as it stands now, is still 10% away from its 2018 highs the s&p is about 6% off. we have recuperated ground not quite there yet, though. switching to individual indexes, though you can see a picture across the board. ftse 100, the u.k. index up at 7,230 points, .4% hires. as zen ka, very strong numbers there are helping to give that index somewhat of a lift in terms of the political story, of course, today there is another house of commons debate going on motion being put forward by government questions as to whether or not the euro skeptic erg group will further wait behind it all this discussion is nonbinding, though, but we'll give you further clues as it to how the parliament are thinking about things on the withdrawal deal

dac up 2.2% higher lots of earnings have come out today. let's get into sectors so we can break it down, and right at the bottom of the leaderboard we've got banks down .7% now, today is a day where we've heard from commerce bank, the german bank. we'll talk to credit suisse. the numbers have been somewhat positive even though the banking sector as a whole is right at the bottom of the leaderboard. as you can see, down three quarters of a percentage point real estate also struggling today. down .3% oil and gas, a tad weaker as well right at the top, we have food and beverages up 1.3%. good turnaround story from nestle there that's helping to drive some of the gains in that basket technology also up 1%. we've got some of the chipmakers in that basket also, having a good day today. let's get to one of our top stories in the banking sector today. that is that credit suisse has reported its first annual tax

profit since 2014. switzerland's second largest bank says it's wrapping up a three-year overhaul plan despite headwinds from widespread volatility and lower activity levels jeff is in zurich, and, jeff, you and i have been following this story for a couple of years now. it marks somewhat the end of the restructuring plan, but is it a mission accomplished for him >> i don't think it's a mission accomplished by any means. it's a work in progress, and i think you know that as well as i do let's face it, it's been a torrid three years, hasn't it? we've had to talk about some trading losses that the market hadn't anticipated we've talked about cash calls and recapitalization, but i think given where we aretoday and what these numbers have deliver delivered, he will think that the market should beat up the share price here

he must be frustrated that the share price overall is something off 40% to 45% since he came into the bank back in 2015 of course, he will be the first to tell you that he is not the only bank in the european banking sector that has seen a weak share price performance part of the secret, i think, in the delivery of this profit has been the attention to costs he has been very focused on taking costs out of the business. even to the extent that as we look at these numbers, there's been a lot of speculation as to what the bonus pool will look like for full year 2018. some suggestions that maybe the bonus pool is frozen it is not frozen, said the ceo, but it will be flat year-on-year let's listen to his answers. >> after q3, i was hoping that it would increase.

i had every reason to believe that q4, the way you run the bank you do have to flex costs, and also we have to have solved q4 actually, flat is not abad result it's not a bad result after a year like the one we've had. you also need to keep in mind that you have to make it per capital, and that's one of the reasons why i'm so big on productivity improvement on a per capita basis, actually, bonuses up almost everywhere you have to remember we have fewer people, so the total is flat, but it's actually a representing a reasonably strong increase in the per capita basis.

>> there's a lot of talk about cross border tooit back on the table, like deutsche bank, for example. what's your view on that, and do you see credit suisse being involved in any way? >> i'll answer the second first. no no involvement from credit suisse i think there needs to be more difference than europe the market is -- that's why we talk about -- for european bank -- european-based bank like credit suisse. it's not insignificant we have had a very differentiated strategy. big base in the u.s. we have asia, latin america,

middle east. we need to get people to understand we are not in the euro zone. we made $2.2 billion in -- there's no reason to explain why over in europe we don't present i think it would be quite significant and may negates all the potential benefits of a merger >> there is a clear differentiation of how the wealth management business is going and how the capital markets related revenue lines

are turning out. like every other bank in the sector involved in capital market activity, credit suisse had a tough fourth quarter they'll be hoping for more stability for 2019, but as he said to us, visibility is challenging for the next nine months or so back to you. >> all right, jeff thank you for breaking it down for us as we were just looking, the stock is down about 2% in trading. perhaps on some of the comments to do with the outlook and the slower activity level for the first couple of weeks of the year versus 2018 now, it is a big day in terms of earnings let's talk about another bank as well credit agrico net profit has more than doubled to 1 billion euros beating expectations a lower tax expense helped to overcome a less favorable environment at different bank's asset managements. the company also says it met its 2019 profit target one year

ahead of schedule. the french firm says its cash dividends will increase by almost 10% compared to the previous year. a report shows that -- are pressuring the ceo to overhaul the operation. that could include removing the lady of deutsche's investment bank garth richie. the mounting pressure comes as the stock nurses losses of some 40% for the year and elsewhere commerce bank has posted a sharp rise in fourth quarter earnings with net profits up 51% beating expectations the german lender says revenues will continue to rise this year. the group is in the middle of a

major overhaul and remains at the center of speculation about a merger with deutsche bank who we were just talking about let's get out to anetta in frankfurt. annetta, the stock is obviously reacting quite well to the better than expected earnings, but is this going to remove the speculation surrounding throwing around commerce bank around this potential tie-up with deutsche >> probably not. >> they're not hugely successful, but they're also not hugely in trouble, as we are seeing here in the numbers they have a slight increase in revenues they're also promising a slight increase in revenues for this year they're paying a little dividend, which is actually double the size of deutsche bank's one they're doing considerably well.

then kind of tiny. the price to book value is at the 70% discount, which is also not a very positive sign, clearly, for what investors are thinking about the bank well, that's the situation where deutsche bank as well and other banks in germany they want to grow in that area of business. there won't be a huge profit margin also going forward, but clearly, as i was pointing out, the numbers are a little bit better than expected but it's also not a big breakthrough back to you. >> and thank you for breaking it down for us. i should point out that both deutsche and commerce bank are trading at discounts of 70% versus their book value. that sets a context for all those discussions about the potential tie-up

i'm happy to bring in an expert in the space francesca, manager from banner capital. thanks for joining street signs. resuls are fine. the big point is what's going to have been in 2019, and then even if you listen to this morning and to what ceo chairman was saying to the market, the outlook is not particularly exciting for banks the big drivers for banks' share prices are three interest rates, and they are low. >> they're not going anywhere.

unfortunately for all of you in politics, it's really difficult to see any stability up until the european elections let's see what happens there >> every single one of these points shows there isn't a real rationale to buy into the european banking story this year, unless things have -- or the prices have devalued so much that you are seeing value opportunities. >> exactly >> are with he there how do you balance the two >> it's a very good point, and that's the reason why you should probably start paying attention to some very cheap stocks. last year you had a -- if you

see the year-on-year movement share prices is around 25% 30% for last year. 25% on year-on-year basis. you have profits slightly up it's not the original 30%. last time you had such a big d rating was in 2011 during the spread crisis. >> do you think that as far as the ratings actions are concerned, things have bottomed out a little bit then? >> yes >> there's so much -- >> it started to become from a value perspective, a very good opportunity. is momentum with us? not yet. >> i want to talk about commerce bank and deutsche. very low base. this is a bank that is clearly struggling with -- >> 3% return don't forget on. >> % return on equity. struggling with profitability. lots of talk about potential merger speculation out there between deutsche bank and commerce bank. is there any rationale in your

view of putting two banks that are both struggling, both trading at extreme discounts versus book, is there any rationale to put the two of them together does it make sense >> it might make sense, but the only source of synergy is the huge cut in the labor force. >> in terms of the says cost-cutting that would be associated >> yeah. the only big source for those two banks is there they have a larger footprint in germany, and they can cut it obviously, it would come at a cost, and political cost that might be very high you are wondering why politicians are pushing for that that's the reason why share prices for those companies, as you mentioned before, are trading such a huge discount

you can see such a huge discount on the italian banks, and the second tier italian banks. >> can i ask you a broader question all of these banks have undergone some form of restructuring. we've seen the swiss banks have moved away from investment banking, as it's a safer wealth management model we're hearing it bnp both announced -- italian banks still saddled with nonperforming loans, even though there has been a reduction in the space. putting all of that together, what is the future of a european investment bank per se is there any future for a european investment bank, or are those days over for now, and we're just shifting back to the old model? safer, lower return on equity? >> that's a problem because we might find ourselves in a situation where we no longer have european champions, and so the business will be back to

u.s. investment banks, but, unfortunately, the regulation is going there. it's very difficult to see how we can have a different trend with such a tough regulation >> all right francesco, stay with me. also coming up on the show, big earnings day, as i said. nestle misses on full year net profit, but salsz are looking up for 2019 we'll head to switzerland for the latest after the break (client's voice) oww, it hurts... (danny) ...that you're not using smarter tools to manage your business. you work too hard to work this hard! collecting receipts? is it the 80s? does anybody have a mixtape i can borrow? you should be chasing people's pets... ...not chasing payments! quickbooks gives you a sweet set of business tools... ...that do all the hard work for you. you may groom corgis, but you don't have to work like a dog. (vo) you earned it, we're here to make sure you get it. (danny) it's time to get yours. (vo) quickbooks. backing you.

[ ding ] show me just add magic. hey toothless. [ ding ] [ gurgling ] [ ding ] show me cartoons on netflix. [ ding ] [ cooing ] [ door closes ] [ cooing ] ♪ [ ding ] show me fish on youtube. say it and see it with the x1voice remote. from netflix, prime video,youtube and even movie tickets. just say get "dragon tickets".

zbroinchts welcome back to the show renault has posted full year revenue that missed expectations amid lower diesel sales and currency headwinds recurring operating profit also fell during the period, but came in above estimates nancy, great to have you with us i want to pick up a couple of points from the report

clearly, they've set out a much more -- the market seemds to be reacting mildly positively to that atype of setup is that for the future of the alliance as we've been discussing the last couple of days? >> well, a few things here at play if you consider just the news we've had around carlos ghosn and that dip that the stock did have around that november 19th arrest of carlos ghosn so much bad news has been priced into this stock, right you consider the diesel situation, the clampdown on the situation in europe which are part of the weaker performance in 2018. a lot of that has been priced in as well. then you are talking about the results overaul and the revenue coming in just shy of forecast there. that's why the upsick there.

as you are talking about the nissan contribution, some of this is down to the diesel situation. fewer diesel sales from renault. this does speak to the alliance to where the industry is trying to reinvent itself, putting more money into autonomous vehicles and electrifiction more partnerships, more alliances seem to be the way forward to try and share that cost what we did from nissan's new ceo toted is that they envision more of the says existing alliance they want to look at ways to make it irreversible ronald reagan enault's chairman is in japan. they're going to be talking about the future of that alliance and long-term that will be the real catalyst for this stock going forward. >> and as you say strong words

they're saying that the alliance is indeed irreversible that was nancy from singapore. now, elsewhere nestle full year sales topped expectations at 91.4 billion swiss francs. the food and beverage giant missed on the bottom line with net profit coming in at just over 10 billion swiss francs juliana is in switszer land and has been monitoring the story as well juliana, oftentimes when we talk about these household goods companies the focus is on their growth, and from what i can see nestle actually did have a very good last quarter in terms of its organic growth outlook where was that strength coming from >> overall this is a solid set of numbers organic growth came in at 3% for 2018, and exactly, as you pointed out, the organic growth accelerated in q4 coming in at 3.7% the bulk of that came through on the volume side. pricing was more muted

in terms of the regions, the good momentum really came from the u.s. and china their two largest markets. in addition it today's result, they said that they intend to complete their share buyback program. 20 billion swiss franc program six months ahead of schedule a bit of a sweetener there for investors. they also announced more on the strategic side of things they said they will be looking at strategic options for their cold cut meat business i have spoke to the ceo of nestle mark schneider a while ago, and i asked him about the portfolio changes they are pushing through, and what he would say to some investors that might say they are still not doing enough, they are still not doing it fast enough take a listen to what he had to say.

now when we talk about our focus on food and beverage and certain health products, people real understand what that means and that we're not, for example, going to be in personal care going forward. inside food and beverage, it's clearly towards fast growing, high value, attractive segments, plant-based offerings, healthier offerings. i think that strategy comes off very clearly you no, and most of our shareholders are quite happy with that pace it's a pace that's mandated by dealmaking capacity, but the operational capacity of actually making those integrations happen, so overall i feel most of our shareholders appreciate that pace.

as soon as we have a different plan, we will also inform the public about what that means for now proceeds >> laureal shares, business is booming. i think for the past year it's done beautifully it vindicated our position to hold on to it. >> as you just heard from the ceo of nestle, they are delivering on their strategy of shifting out of those slower growth businesses into the higher margin, higher growth areas. it's good to see that they are carrying through on this initiative now, one other thing i want to flag today, they also announce that they have nominated two new independent directors to their board. now, of course, nestle has been under a huge amount of pressure from their activist shareholder third point who owned over 1.25%

stake in the company they have been pushing for more changes at the governance level, and, of course, on the portfolio side they are taking steps to address some of the concerns, and at the moment it seems as though investors are taking today's results well back to you. >> they were a solid set of results, juliana thank you for bringing us those results from nestle. also coming up on the show, the ceo of deutsche speaks exclusive i feel to cnbc after admitting his outlook for 2019 is somewhat subdued. not the first person to say that today. stay with us

welcome to "street signs." these are your headlines credit suisse reports its first annual post-tax profits as money flows back into wealth management despite a sharp contraction in market activity in the fourth quarter. speaking to cnbc, ceo tadjane hailed the bank's turnaround >> we have really struggled, and we've had our best quarter since

2014 that's the magnitude of the trend that has taken place it should be really reassuring for market service we have no material. >> commerce bank shaerz rally after the net profit jumps 51% while the german lender says revenues will grow in 2019 we'll hear from the cfo stephan engel at 12:00 cet nestle in the green as the swiss firm expects organic sales to improve after missing full year net profit forecasts. the ceo says china remains a growth market. >> our gdp growth numbers. that has not translated into slowing consumer interest. we also are coming out of a period of some underperformance in china over the past few years. we've made significant recoveries >> and the end of aan era. airbus shares jump as the aerospace giant says it will halt production of its a380

planes in 2021 after its biggest customer emirates slashes its orders for the super jumbo we'll be talking to the ceo at 11:50 cet. >> it is a valentine's thursday for european markets lots of earnings hitting, and many positive numbers, good results there actually helping to boost sentiment in european markets this morning let's just take a quick look at how things are shaping up. the only underperforming says the ftse may be down one-third of a percentage point. ftse 100 up .4 astrazeneca helping that commerzbank is one of the outperformers in the index there, and the german index overall, i should say, up about 45 points for points terms i should also point out that the

gdp number was released a couple of hours ago for the fourth quarter in germany came in at flat, 0% growth. germany has technically averted a recession. again, it's slightly worse than expectations, but still as far as the macro is concerned, germany did not enter recession in the last quarter of the year. the cac also up 0.6% gains are being led by airbus. let's switch and talk about what some of the developments in currency markets as well today you can see it's being expressed mostly in cable, which is trading about .1% weaker today 128.30 is the level. again, we have another day setting up for another day of discussions at the house of commons. we'll talk about that shortly. let's get on to the brexit story today, and that is that e.u. council president donald tusk has downplayed talks saying

london has to post concrete, realistic proposals. tusk made the comments after meeting the e.u.'s chief brexit negotiator, michelle barnier meanwhile, u.k. prime minister theresa may will today seek renewed backing from parliament for her brexit strategy. mp's could vote on several proposals, including one that would reverse brexit and another that involves a second referendum on e.u. membership. wilham, as ever, at westminster monitoring the developments. today, to be clear, wilham, none of the motions will be binding today we're just -- we're looking at a day of debate within the house of commons. perhaps getting a little bit more light on how mp's are thinking about the brexit progress in general. nothing is binding >> nothing is binding, and yet, there are some things to watch in particular, whether the actual motion itself is being proposed by the government, could be defighted there's a possibility that will happen it acknowledges a couple of

votes taken a couple of weeks ago here in westminster, including one whereby mp's express their displeasure at the prospect of a no deal brexit that is as it currently stands included in today's motion there's a possibility that some members of theresa may's conservative party will vote against the motion that would be, a, embarrassing for the prime minister, and, b, it would potentially send a message it on those in brussels that she's unable to command a stable majority in the house of commons. something, of course, she would need in order to try to win any form of concession from them to broaden out the conversation, we're joined this morning by the -- thanks so much for being with us. i want to ask you about uncertainty. there's a lot of that around, and we hear, again and again from businesses, including four over the last 24 hours, about the uncertainty and about the prospect of no deal. from your perspective, says what are you looking for in terms of concrete development that would provide both uncertainty and some clarity in the days and weeks ahead?

>> i think we're not going to get certainty in particular until the house behind us votes for something that can be agreed at the european union. one of the things before the brexit vote in 2016 that we said was that we expected to see an awful lot of political noise, and that's really still continuing today, and it's driving the uncertainty that is affecting business decisions it is affecting investment prospects for the u.k., which affects growth going forward we don't expect that to clear up until there is an agreed position in the house, and the problem is at the moment it's hard to see how you get there from where we are today. >> you talked about business decisions. obviously it's covering things like investment decisions, capex spend, but a lot of businesses the last few months is when they failed to meet their targets, they've come in below expectations on things like earnings they've said, well, this is a lot to do with brexit uncertainty. i wonder from your perspective, does that really hold up to scrutiny

you like to hold off on big purchase plans it does weigh on those kind of spending plans, and we have genuinely seen weakness in the u.k. economy over the past two or three years, but would not have been there without the vote to leave european union. the day after the referendum, we had the substantial falling sterling, and that was, in essence, a big wage squeeze weighed on consumption and growth that we are now only coming towards the end of. the brexit vote has had real economic effects how much that has driven poor performance in individual companies versus what they were doing anyway, it's probably impossible to say. it requires a lot of detail investigation of the individual companies. at a macrolevel, it clearly has ae weighed on revenues and clearly has weighed on profitability. >> from the perspective of business executives, market participants, looking at the various outcomes that still remain possible, is the no deal scenario the one that would most likely trigger a review of

britain's credit worthiness? >> our rating on the u.k. sovereign is double-a two. a stable outlook at the moment we were clear when we moved the rating down to double-a 2 that we expected a deal between the u.k. and the e.u we do not expect that dole to match the full about ep benefits of e.u. membership we expect it is negative overall. we don't think that future trading opportunities elsewhere or regulatory freedom will compensate for the damage done by leaving the e.u what we're watching very closely is wherever that risk of new deal rises, we think that becomes our base case. if the u.k. crashes out of the european union without any kind of an agreement, that would pose significant credit challenges both for the u.k. sovereign and for a range of other issues that would be effected. when we decide that's the most likely outcome, that's where we would take a close look at the ratings that could be effected >> we will see whether mp's bare that kind of warning in mine as they make their decisions in the weeks to come. that was colin ellis, the chief

officer of moody's i'm going to hand it back to you now. >> excellent thank you for bringing us that sbufl. live from westminster there. now, germany has managed to just escape a recession the economy stagnated in the fourth quarter, but gdp is coming in at 0% just below expectations that's after it contracted as the largest economy contends with a number of headwinds, such as ongoing trade tensions between the u.s. and china it record a far worse than expected 35% drop until fourth quarter net profits.

>> thank you very much for joining us here on cnbc. let's talk about the last year, what was the drive of revenues we managed get revenue on 13% we were able to -- our net profit increased by 17%, which was way beyond what we have originally expected.

overall it was a great year for us >> effectively, we had a wonderful q4 and very strong december given the market environment or the growth on the revenue side was excellent what we did, right, we had managed a structural costing group program, and, therefore, we put in and baked in the cost provisions for that, and that is why it looks. >> it was as good as q1. >> many people are expecting this year to remain quite volatile on the market is that something that is positive for your company? >> indeed. we are living off the market

we are mirroring the market development to more volatility, the higher the interest rates to better for us. there's a general statement. you stated right at the beginning with your question, you stated that many people are expecting a lot of volatility. the truth is that we are seeing right now slower and lower volatility than last year. q1 last year was excellent we had seen great volatility, and, therefore, we see, if you compare q1 last year with q1 this kbreyear we see lower leve volatility generally speaking, you are right. the more volatility, the more market development, the better for us >> let's talk about your road map, and especially m&a activities you have anything new to convey to us here >> of course i can only state what i have said more than once. we want to grow on the organic side, and we are determined and convinced we can grow by about

10%, right, on the net earnings side even this year. we have a little bit more modest, right, expectations given the high expectations and the high numbers of the year, 2018 the growth is fundamentally coming right from the same sources we had last year, and that's the euro caring business. investment fund services and foreign exchange in commodities. >> talking about m&a again, what kind of sizes do you -- you know i don't give in. what kind of sizes are you looking at >> indeed, we have the size of roughly 1.5 billion euros. right? we have performed in the year 2018 too small i think it's nice. they don't turn the needle wresh we are monitoring the market structurally very systematic

way. as soon as something is coming in the areas of fixed income, commodities foreign exchange data analytics, or investment fund services, we are keen to grow and organically via acquisitio acquisitions >> thank you so much with that i'm sending it back to you guys thank you. >> all right thank you for bringing us that interview with the ceo of deutsche there elsewhere it is valentine's thursday earnings. astra zeneca beat the top line thanks to strong product sales the results were boosted by solid demand for cancer drugs. however, net profit fell 21% in the fourth quarter astra says it has made extensive preparations in the event of a no deal brexit having done additional finish stock build of six weeks for the u.k. we'll be speaking to the ceo

u.s. president trump says the chinese trade negotiations are going well -- stay with us ahh potluck. these dishes will soon be yours to scrub. and they're not even yours. new and improved dawn ultra lets you scrub 50% less and get done faster. a drop of dawn and grease is gone.

wack back. another stock that we've been following very closely today, airbus airbus shares are soaring after the aerospace firm announced it will end production of its a380 jet after years of poor sales. with the last model due to be delivered in 2021. the announcement comes after the biggest a bs 380 customer airbus has beat expectations with a 56% rise in quarterly adjusted operating profit the group has hiked its dividend and outlook for the year we'll be speaking to the ceo tom enders that is at 11:50 cet in the meantime, he is actually giving a press conference on back of these earnings just a couple of headlines that are coming out from the cfo who

has been speaking of the ceo the company has no further reimbursement of european government loans on the a380 no plans to reimburse the european government loans on the a380, to be clear. he says that the we are getting close to that march 29 date, and continge ensy plans. we are reading what other companies are being put in place. it will be interesting to hear what he has to say about that point specifically we won't be speaking to tom enders in about an hour's time in the meantime, i want to bring in john sneller, the head of aviation thanks very much for joining us down the line today. i want to ask you specifically about this a380. i mean, it's clearly the end of an era they announced that they're closing down and not going to be producing any more after 2021. after only launching 12 years

ago. what do you think was the catalyst for the demise, so to speak, of the super am bushs plan to have passenger jets taking 600 people in one goal all over the world >> well, i think -- good morning to you i think it's a coincidence of a number of issues really it's driven by the fact that engine technology is growing and improving. in terms of fuel efficiency all the time when we see two engine aircraft that can now travel in a 17 hours from singapore to newark, as we have seen, 16,000 kilometers, you know, that means that the very long haul four engine aircraft are able to do the same, obviously, but they are more expensive to run, and, you know, burn more fuel the engine is the most expensive part, single part, to look

after, you know, on any aircraft that's probably one issue there. also, of course, aircraft, as i say, like the a350 coming on-line now and the 787, the 787 they all allow the same capability as the a 380, but they can do it in a more flexible manner and also be able to take, you know, passengers on short haul and medium haul trips as well. >> essentially they had just underestimated the efficiency gains when it comes to the fuel and pricing when they originally launched these aircraft. one thing that also struck me is that if you look back at the history of orders, obviously british airways air france, air emirates, air china, all those aircraft carriers had placed orders forthe a380, but nothin out of the u.s. or south american airlines. do you think that this underpins

a bigger issue for airbus in terms of its ability to sell into those markets, or is this specifically an a 380 problem? >> i think to be honest, it is an a380 issue. you know, many regional airports in the u.s. are relatively, you know, modest no disrespect. there are some huge hubs, atlanta, newark, as i had mentioned before, and others equal equally internally within the u.s., it's very much about low cost and these two engine aircraft with their very high efficiency can get passengers, you know, within the u.s. without really any effort whatsoever it was always going to be difficult to get up to an 800 seater, a380, into a sort of regional, if you like, market there. it was very much about

trans-continental flights and if you like, the luxury that, you know, sort of executive passengers could pay when traveling these enormous distances. >> obviously, this is quite a high profile disappointment for airbus the company. do you think that their focus going forward and the fact that they will have to focus on other models such as the a320, a350 that that will be enough to compensate from the loss of markets from this a380 and they can just draw a line behind it >> i think it can because i think, you know, in the world of airbus and, to be honest, boeing, 234 delivered aircraft with 80 on order, and as you said in your introduction, abated by 39 aircraft from emirates by far and away its largest user as a result of recent announcements you know, that is not 300 airplanes that's not a huge

backlog. that's more flexibility in terms of the way ahead both being able to offer, you know, aircraft that have very long range and also regional capability as well >> all right john, thank you very much for joining us today on the show that was john snellor, the head of aviation at ihs market. a quick look at u.s. futures before we head out, of course. a lot of the price action has been underpinned by hopes on china-u.s. trade discussions president trump is reportedly considering a 60-day extension we shall find out and be monitoring developments. that is it for today's show. world wythe exchange up next

my mom washes the dishes... ...before she puts them in the dishwasher. so what does the dishwasher do? cascade platinum does the work for you, prewashing and removing stuck-on foods, the first time. wow, that's clean! cascade platinum.

the latest inisn't just a store.ty it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome.

>> here's your top five at 5:00. president trump reportedly considering a major extension to the china trade deal deadline. at the same time the clock still ticking towards the possibility of another government shutdown it is not over yet crude oil alert. oil hitting its highest level of the year as venezuela's interim government takes a major step towards pushing maduro oit the a380 coming in for a permanent landing. airbus scrapping production of the world's biggest jumbo jet. we'll tell you why and since there is so much talk about taxes and big spending plans lately, we