investors drop saudi stocks in light of the caution case and the last of the big foreign companies pulls out of a key investment summit in rio officials are scrambling. just one notch above junk status a credit ratings downgrade for italy but other markets actually worried. jo kayser the c.e.o. of german industrial giant siemens announced today that he'll pull out of the davos in a desert now that's the massive investor conference set to begin this week in riyadh move may not be a surprise in the wake of the suspected murder of journalist jamal shogi but for kaiser and his company it's not an easy one. preparations are well underway the mood though is muted said his future investment initiative a conference known by some as davos in the desert kicks off in riyadh on tuesday but the number of participants is dwindling delicious business leader to pleasure the event is this man seaman c.e.o.

joe kayser he announced his withdrawal following pressure to respond to allegations of saudi involvement in the killing of journalist jamal. a turnaround since last week when qasr said he was still planning to attend in a statement posted on his linked in profile he said i will not attend the future investment initiative twenty eighteen it's the cleanest decision but not the most courageous one and it's not a decision against the kingdom or its people it's a decision based on how much responsibility one can assume at one time for now the truth must be found and justice must be served. cases one of several business leaders who find themselves in a moral quandary in the run up to the side of the conference but the wording of his statement especially his eagerness not to condemn his would be host it's a reminder that for many companies this is primarily a tradeoff between profits and p.r. . our financial correspondent. following.

he joins us now from yan's american firms were much quicker to pull out of this conference days ago it likely wasn't an easy decision either so what's at stake for a business. like this. well if you look at silicon valley for instance saudi investors are among the biggest investors into the u.s. take start ups in silicon valley but you also have a couple of big tech names being engaged in a multibillion dollar deal in saudi arabia and then u.s. president donald trump repeatedly talks about a possible one hundred ten billion dollar arms deal with saudi arabia the president also claims that one hundred thousand couple of thousand hundreds of thousands of jobs here in the united states are at stake in the defense industry even if experts are skeptical if those numbers are. too high but investor respect

a lot seems to be at stake for u.s. business so let's move away from saudi arabia for a moment the coming week is a big one for investors with some major companies reporting their earnings tell me what are investors looking for. here wall street is eager to hear what effect for example of the higher tariffs might have on you as a business is if the stronger dollar is. hurting some of their sales and then also we have higher commodity costs higher oil prices still there is one big question that wall street is having when we get numbers from companies like boeing ford harley davidson or caterpillar just to name a few and then also we had specially early on this year tech stocks on quite a run that has slowed a bit lately and we will get numbers from companies like alphabet amazon microsoft intel so it's really a heavy and very important week when it comes to earnings here on wall street. our

financial correspondent in new york thank you yes. italy is in the e.u. to stay that's the message of prime minister josep and conti who says his country won't leave the european union but that it will stick to its deficit hike that's despite criticism from brussels conti argues the economy needs a lift of the blocks biggest member state germany has warned rome to be careful with debt and moody's has recently cut italy's credit rating. it's at least prime minister has defended the deficit busting budget insisting his country needs a new approach to stimulating the economy because previous efforts have failed in the second quarter growth slowed to its weakest pace in nearly two years in. some of the big draft as well constructed and well formed the provisions for growth are very good in respect to what we are doing at the moment. he

has pledged that next year's deficit won't exceed two point four percent of g.d.p. but that's triple the previous government's forecast the italian leader said it would fall below two percent by two thousand and twenty one and he had that the national debt to g.d.p. ratio would decline as well he also dismissed any suggestion that italy would leave the european union or the euro zone. read my lips. no chance no way to get it there's no way to get out of. many italian support runs tough stance against brussels and hope the increased spending will help kick start the economy. and i think all the election promises were kept so they did just fine even keeping their stance with europe which i think is the fundamental battle. going on in value not your pay i think that europe does not have to tell us what we have to do. because they are

prejudiced against us the stopping comparison to other european countries may not to call for them to expect us to praise europe. on tuesday the european commission is set to discuss and decide the next steps in the procedure first italy's proposed budget for next year. now for more on this topic we're joined by dr john whittaker an economics researcher and professor at lancaster university in the u.k. and dr whitaker italy says it won't be influenced by brussels rejection of its budget but what leverage does bustles really have in this case. well logo's down to the rules known as the stability pact which has been around right since the beginning of the euro and we start trying to strengthen and change its name and those sorts of tricks to try and make it work but the stability pact has always been short of teeth that it doesn't bite the ultimate sanction has always been to

find the country is running excessive deficits but no fine is ever been imposed and indeed it would be rather crazy things to do to find a country of us in budget troubles so they try to rely on lots of surveillance so cool successive deficit procedure makes it sound all sinister but if the stability pact works at all it's probably by causing reputational damage to a country that looks a bit running in a budget that's too great well what about market pressure in this case we know that moody's has downgraded italy's credit rating what does that mean exactly and what kind of pressure does that put on italy's government well it does in the sense that it's been raising the yield on it and it's on the italian government budget that telling governments bones that out about three and a half percent or something which is i think it's a four or five year high if that creeps up a great deal more the danger is then that the taliban government will find it's difficult to borrow. that's

a very bad position that reminds one of greece when greece was merely leaving the euro in two thousand and fifteen if the government can borrow well looks very much towards that it might have to abandon the euro and go back to vision lira now we know the deficit spending is not unheard of especially when trying to stimulate an economy so why do analysts in this case look so concerned when they are speak in such concerned manner when they look at the italian budget. well you know you can make an argument for government to do most anything or you can make an argument for government to do less spending and in both cases the objective could be to bring down the government's debt. stimulus you have that's what the government's own doing but the rest of the european union and indeed other commentators seem to think that's the moment rogo for it's on the i suppose it's a little given its reputation even before he joined the euro the government they had a reputation for spending too much and having inflation may join the euro is to spend

too much but it couldn't have the inflation of the event ended up with its of the being the lowest during euro zone countries since the beginning of reputational problem people think that it's in his finances are going to get out of control dr john would occur with lancaster university thanks for joining us carmaker fiat chrysler has agreed to sell its subsidiary mine yet the model a the auto parts supplier will be taken over by cal sonic canzano from japan for six point two billion euros the deal will boost the japanese component makers operations in north america and europe chrysler had planned to float its subsidiary but was put off by low i.p.o. valuations for industrials the takeover will create the world's seventh largest independent car parts supplier. now ryanair has logged a seven percent fall in profit from april to september summer's

a key season for europe's largest budget carrier but it took a hit from rising fuel costs and lackluster bookings that were marred by strikes ryanair says it will have to keep short haul tickets prices low prices low this winter and the carriers bracing for more damage cabin crews recently failed to remove an irate passenger who hurled racist insults at a woman a video of the incident was posted online. competition authorities in the u.s. and europe have approved the merger of two major industrial gas companies germany's lenda and u.s. based praxair the eighty billion dollars deal will create the world's biggest manufacturer of gases including oxygen helium and carbon dioxide the company's got the go ahead to merge after agreeing to sell off some assets including praxair is european gas business the deal is due to be completed within the coming days. that's it for us a business thanks for watching. the

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