we talk about the air france klm group, there are differences between air france and klm, air france been conduct capacity. air france klm management has made it clear that future growth in air france will depend on productivity. and talks with pilots in particular have yet to reach conclusion. have been stalled, led to big strikes last year. they're back on track. the new chief executive for next year may give fresh emphasis. the group as a whole has been lagging with its peers in europe for many years. so investors are, you know, still going to be very cops for time to come. >> yeah, tentative. let's see what if you management can do. jonathan, great to chat with you, from cappa. >>> this come after the german tire maker posted a loss to 734 million euros. >>> shell has record a 63% annual decline in current costs of supply eps. they also warned of, quote, substantial redundancy and structural charges next 84. adjusted earnings fell to $1.6 billion but they just exceeded expectations. >>> get in touch with us by e-mail, the address is on the screen. you can find us on twitter, the

he has been named chief executive of the air france klm group. is replacing the other .ethods oversaw massive costs elliott richardson reports on how the new ceo will be facing some turbulent times ahead. reporter: is the tide beginning to turn? klm made profits in 2015 for the first time in seven years, and now they have a new leader. he is renowned for his prowess in the airline business and transport market. he was selected by the board. theairline has struggled in wake of fierce competition. low-cost things like easyjet and offered have competition that may for turbulent few years. outgoing chief executive alexander dejuniak was brought in to halt debt, and they had net profit of 8 million euros in 2015. many attribute that some 28 decline in fuel prices. he attempted to cut costs, launch a low-cost service, reduce number of long-haul flights, and add 2000 jobs, but was met with fierce competition from the unions. the proposal resulted in a four day pilot strike, the worst industrial dispute in the airline's history. shirt torn off by fellow

separately, air france-klm is selling to chooiinese conglomer. francesco, we didn't see a sale in may, with losses at four-week high. trading is tough? >> it's very tough. we remain defensive. and we're very wary of stock markets. we think there are risks out of there. with many events, beyond that, markets still look expensive to us, especially the s&p. and for no fundamental reason for liquidity and everything that applies. and now we see risks like the strong dollar coming back to the market after yellen confirmed interest rate hikes for the next months or so. and china with the weakest fixing in many years. we think it's a bit defensive now. >> you've given me a whole host of things to dig around in. but first how different of a sense is your portfolio? >> it's difficult as a family to make it and being a positive man, you need to carry based on carry. but this basically might be the right time to be to have the fund carry, at the time, $1 million of trading negativity. right now, the industry goes down the credit curve into liquid. so it say

air france-klm in talks to sell catering unit. it's worth about $520 million.t's stepping up global expansion to buy swiss airline company gate for $1.5 billion. reuters reports several chinese and japanese suitors expressing interest in cit units. the first round bids for the releasing arm which owns a fleet of 350 planes are due in june. >> the ceo of singapore's noble group use of ali reza has resigned. noble shares are down 75% since then. they are up, though, today, 5.3%. >>> a five-year battle between oracle and hp heads to court opening on a trial that focuses on oracle's alleged role. this follows a high profile loss for oracle last week in a court fight with google. wilf, the price tag on that would have been $9 billion for oracle. the jury did not rule in their favor but they sure could have used some of that. >> they definitely could have used that. this morning, we're watching, of course, the sumner redstone battle. more shots fired over the weekend for the latest. here's landon. she's got details. >> wilfred, good morning. here's the latest on the

air france, klm, in talks to sell a stake in the catering unit to china's aka group.s airline catering company gate group. several suitors expressing interest in c.i.t. group's aircraft leasing unit. first-round bids for the leasing arm, which owns a fleet of more than 350 planes, are due in june. >>> katy perry's 89 million twitter follows were in for a surprise last night. the pop star's twitter account was hacked. her page was filled with profanity and slurs. not like the usual ones, as well as a tweet to her rival, taylor swift. the tweets, though, if you're going to run and follow her -- you're probably already following her. 89 million. anyway, the tweets have been deleted. my next story has been deleted just like the tweets. i'll let you talk about brexit. my next one -- i was going to repeat the adele story. >> one of mine was gone too, the box office. >> when we come back, we will talk about the brexit. the vote is quickly approaching. we'll talk to former german defense minister about what it might mean for the eu economy. >>> later, don't miss former texas

and a warning from the air france klm group.ting -- shrank tahnks fuelanks to a drop in prices. at the carrier says it will be difficult to maintain cost because of a highly volatile market. note reallyt with a reiterating the cautious trading note, we see deterioration, futures -14%. on our economic politics, adam posen of the peterson institute. here is productivity. it comes out today. you have this tattooed to your brain. can a president of any party of any ilk reverse this trend? dr. posnen: not in the time they are going to have a turn. you have to spend a few years doing it. it is about investing in human capital, corporate investment coming back, changing the tax cut. there is a huge laundry list of structural reform to do in the u.s. the productivity downtrend is impacted by more than that because it is happening around the world. tom: peter or zac talks about the glide path of exponential functions. productivity, capital dynamics. labor dynamics, those glide paths. total factor productivity, which i've never really und

a warning from the air france klm group.op in fuel but they say it will be harder to maintain ticket prices. inbev claimsh weakness in brazil -- they are ofthe middle of a takeover miller. megan: a surprise decision by ted cruz to bow out of the presidential race. john heilemann is with us. ralph schlosstein still with us for this hour. what are your key takeaways from last night? john: i thought back to 2008 when tim russert when on nbc and we know barack obama will be the democratic nominee. no one said that last night about donald trump but it was obviously clear. 1237on a path to get to delegates and cruz made it official by dropping out. ironically, we have a still ongoing democratic race, even though hillary clinton is equally on track to be the nominee. we will see more spending, more battling, more bruising on that contestedotentially a democratic convention. megan: how does donald trump now --about healing these writs rifts? john: with great difficulty. the people around him recognize that there is a lot of mending