because otherwise phil, they go to the back of the line with air bus -- >> no, no, no. >> what? >> they don't go to the back. >> they go to the front of the line >> are you telling me that the ceo of air bus would not roll up to the headquarters of southwest and make a big production about the fact that southwest, the darling of boeing, is placing an order for air bus. >> oh, they would -- >> they would find some slot positions pretty darn quick. >> who does he jump in front of? i mean both of these guys have tens of billions of dollars in backlog. are you saying all of a sudden he jumps over all the others, over lion air and everybody else >> do i think that southwest would jump to the very front of the line and get a block order of 50 a 220 or a-320, no but find slots so they're not waiting six years to get airplanes, you bet. >> i do too. >> that is a huge -- it would be a huge feather in the cap of air bus. >> you have to believe also, phil, i wonder how gary kelly thinks about this, they're so exposed to the max, he must know that there's going to be consumer unease once th

had provided $7500000000.00 worth of subsidies to air bus from the european union nations so we get to impose some and of course child picks out all the nice foods if he doesn't apply you know he famously it likes things like hot dogs and hamburgers and burger king stuff and donal's and junk food so he's applied it to things like stilton cheese ing google and stuff like that not bring. one. you know this is what happens when you take the gold standard away from the world economy the way that nations try to recreate a gold standard is by imposing tariffs on each other to even things out and it creates an enormous bureaucracy and it creates an enormous need for banks to print . money and contracts and it creates a need for lawyers and it creates a need for all kinds of administrators which is great for them but it's a drain on the economy because our money could go into actually productive parts of the real economy supporting real jobs with real wages and real g.d.p. growth but we are opposed to gold standard. course by many decades now and saw the need to create layers and layers and

subsidies to plane maker air bus. this is your business report i'm stephen beards in brylin thanks for watching the u.s. and china have agreed on a partial trade deal according to u.s. president trump that means the u.s. is suspending plans to increase tariffs next tuesday on about $250000000000.00 of chinese imports trump and chinese president xi jinping could sign the partial agreement as early as november investors welcome the news with u.s. markets ending the day higher. i'll take a look at this with our financial correspondent in new york quarter and now yes markets have been looking forward to a trade agreement and in particular to this meeting between trump and you all day what do they make of this trade deal. well there is some relief on a wall street but it will be very interesting to see how the market opens on monday because they have been so many headlines and shortly before the markets closed at some point we saw blue chips trading up by more than 500 points what we did not end on the high note the market

had provided $7500000000.00 worth of subsidies to air bus from the european union nations so we get to impose some and of course child picks out all the nice foods if he doesn't apply you know he famously it likes things like hot dogs and hamburgers and burger king stuff and donal's and junk food so he's applied it to things like stilton cheese ing google and stuff like that not bring. one. you know this is what happens when you take the gold standard away from the world economy the way that nations try to recreate a gold standard is by imposing tariffs on each other to even things out and it creates an enormous bureaucracy and it creates an enormous need for banks to print . money and contracts and it creates a need for lawyers and it creates a need for all kinds of administrators which is great for them but it's a drain on the economy because our money could go into actually productive parts of the real economy supporting real jobs with real wages and real g.d.p. growth but we are opposed to gold standard. course by many decades now and so the need to create layers and layers and

said that the european union was illegally subsidizing its aircraft manufacturer air bus and the e.u. fired back saying the united states was doing the same thing to its aircraft manufacturer boeing and the irony is the world trade organization and centrally found both sides guilty now the u.s. has the advantage because it filed its claim 1st by just mere months which means it is the 1st that can impose these tariffs on the e.u. it's actually as punishment sanctioned by the world trade organization and we are finding out more details about what exact european products will be targeted by these terrorists in addition to the civilian aircraft that will be levied by it with a temper centerra if there is a litany of luxury goods including irish whiskies british bed linens german coffee spanish all of oils french wine cashmere these are luxury goods and perhaps they were selected by the u.s. government to try to dampen the impact on consumers but they will be levied at a hefty 25 per cent tariff starting in just under 2 weeks' time and this will start with the airline industry so what's th

ironically, because of our fight over air bus meantime, our trade dispute with china goes on. the chinese economy is taking a massive beating. we'll talk about all that next >> this is "the exchange" on cnbc >>> welcome back to "the exchange." tariffs on $7.5 billion worth of european goods because of a fight over air bus ironically are kicking in today china's third quarter gdp just came in at the lowest level in 30 years and that's based on what they're telling us it is. for more on the trade battles, fred kemp is here. cnbc contributor dan griswold also joins me he's director of trade and immigration. fred, listen, it is -- it is somehow emblematic that we're having this fight with the eu over its subsidies for air bus at the same time, we're learning about deeper problems with boeing so that might not be either here nor there. but what does the fact that we are moving forward with these retaliatory tariffs on the eu mean as far as you're concerned? >> well, you know, first of all, this is absolutely the wrong war at the wrong time. and even trump administration insiders an

subsidies given to european airplane manufacturer air bus which the world trade organization says were legal fears of a tit for tat stem from the e.u. likely being able to impose its own new tariffs next year for illegal subsidies given to us airplane maker boeing for more on this heidi castro who joins us joins us live now from washington d.c. heidi how did this all start. well neve there is a lot of irony involved here because 15 years ago essentially the united states and the european union pointed their fingers at each other accusing each other of doing the same thing which was given illegal government subsidies to their own aircraft manufacturers and the irony comes in that the world trade organization found both parties guilty now the united states had the advantage of having filed the claim 1st and so today it was the 1st to receive the world trade organizations greenlights to impose these punitive tariffs on the e.u. and now these tariffs go well beyond just european made aircraft which will be tariffs at 10 percent they also include a 25 percent tariff on a long list of luxury

recently the city air bus was presented in southern germany and air taxi powered by electric motors that initially would carry up to 4 passengers. there are already small electric powered planes out there but larger passenger planes still don't have enough batteries for engine power. and on wants to change that the physicist and pilot heads the electric aircraft department at a german multinational siemens he and his team are developing more powerful electric motors that could replace even larger fuel driven engines. do you see a motor that only way you spin 50 kilograms but as an output of 1500 newton metres of talk that's 200 kilowatts of electricity politan city here is 5 times higher than what you usually see as a shelf. so time to test it. we watch a stress test of the city air bus motor the. near simulate a flight from nuremberg to munich. the motor functions as expected even when fully loaded passenger planes with hybrid motors are expected to take to the skies soon entente thinks savings of 15 percent are possible with hybrid technology. like always my dream is that in 2035 i cou

had illegally subsidize european playmaker air bus now this sets the stage for a further extension of what's already the world's longest and costliest trade dispute. the world trade organization has given the green light for the u.s. to impose sanctions on $7500000000.00 worth of e.u. goods u.s. president donald trump a vocal critic of the w.c. oh appears to have softened his stance on the organization word for word you know winds are now because they think i don't like the w t o and they want to make sure i'm happy because all of those countries were ripping off the united states for many years they know that i'm wise to it we've had a lot of wins this was a $7000000000.00 when not dead from october 18th washington will impose new tariffs on e.u. exports including 10 percent on aircraft and 25 percent on other industrial and agricultural products the move is the latest in a lengthy 15 year battle between european aircraft manufacturer airbus and its american counterpart boeing the european union has so far made it clear it would bring forth retaliatory tariffs if necessary. you alway

up to between 10 and 25 percent of the various tariffs being applied i believe it's 10 percent on air bus products so there is that but also you know it's interesting that you mention the printing of money and. like why is the fact that say for example the e.c.b. has printed more money than the federal reserve bank why is not that considered a subsidy as well like oh are we going to start getting down to that sort of micro level who's printing and cheating more they're all cheating essentially is what they're saying but some are cheating faster and harder than others right it's a form of cheating again when you leave the gold standard there's no way to have an accounting or a balance sheet that shows exactly who's trading with who and what a sorts of silly print money to cheat to undermine to try to grab a few extra pennies or euros here and there and that it is part of the scheme and that is what happens when the f.e.m.a. money and central banks and. and and fractional reserve banking and it just ends up into this this huge enormous pyramid of paper that throughout history the past 300 y

subsidies for air bus which the world trade organization recently said had harmed u.s. based boeing's bottom line to make things right the w t o says the u.s. can impose $7500000000.00 in tariffs on e.u. goods including wine that's an expensive surprise for small u.s. business owners such as new york wine merchant how their johnston i'm going to have a 25 percent increase on a significant amount of my wines. so all i can hope now is to just remain steady growth in this scenario is unlikely at best. it's not just french spanish and german wines facing a 25 percent tariff lovers of spanish olive oil will be paying more so too will those buying cheeses and meats butter and yogurt even some housewares and small tools and aircraft parts the us is taxing them at just 10 percent and frankly i'm concerned that there's. not a lot of preparation because there simply wasn't time and so i've affected the italians which are across the street who sells parmesan cheese is a fact that the restaurants the whole food in wide gamut european producers had been fearing the worst even lobbyi

flicks claiming the movie on the case is making it look bad and w t o ruling on illegal subsidies for air bus as european farmers fearing for their future. and for scoble welcome to the program on a day that provided a crucial step to what could end up as an orderly was draw all of britain from the european union the british pound surged on news that negotiators from the u.k. and the e.u. have finally struck a new bragg's it divorce deal sterling rose above $1.29 and $1.00 euro 16 on hopes that britain's exit from the e.u. will be an orderly matter but the pound remains volatile as some hurdles still remain the most significant being parliament in london still has to confirm the deal the u.k. is due to leave the european union on october 31st. now the ongoing brics and uncertainty is putting a lot of businesses under pressure a french confectioner for example is struggling to meet demand in the u.k. as shops there are stockpiling sweets for christmas just in case. for workers that french confection is cousy are working extra hard this autumn they're packing up box after box of sweet treats to

punitive tariff so the result of a long dispute regarding subsidies given to european aircraft maker air bus the world trade organization ruled that the subsidies were unlawful and gave washington the green light to impose 7 and a half $1000000000.00 of tariffs on e.u. imports but the e.u. is ready to retaliate and has announced tariffs were some $12000000000.00 in response to unlawful subsidies given to u.s. plane maker boeing that w t o is expected to announce the penalty for that in the coming months. you. free and fair trade based on a level playing field and. we would not be naive but to be. reading and to mean to be. and if someone is imposing our weaves on of us insect we do exactly the same. the latest terrorist mean americans will now have to dig deeper into their pockets for e.u. products that's likely to trigger a sharp drop in sales and layoffs at companies producing their items. a bit of call has now been restored to u.s. indices but a week services report released thursday sparked anxiety among traders the institute for supply management and association of purchasing managers s

of illegally subsidizing air bus and the world trade organization agrees the e.u. has a countersuit pending with the organization and it is expected that the w t o will soon allow the e.u. to apply tariffs over a legal boeing subsidies but for now sanctions are a one way ticket from october 18th on washington will impose new tariffs on imports from the e.u. 10 percent on aviation products and 25 percent on other industrial and agricultural goods the european union stands ready to retaliate. you always defend the free and fair trade there is a level playing field and pretty poor so. we will not be naive. but we are working reading and who. is imposing. all of us and so we do exactly this so all sides are now waiting to see what kind of penalties the world trade organization imposes on the u.s. over boeing subsidies. well read a paper like a global head of industry research of fish solutions joins us from london marina i know this is a new escalation in the trade war but pretty bored with this story i mean it's senseless both a guilty and both are going to just incur

it's the latest move in an epic 15 year bottle revolving around europe and its air bus on the one hand on america's boeing on the other the w.e.o. has found both the e.u. and the us guilty of paying on lawful subsidies to their respective plane makers before washington announced its response to the w t o ruling germany's chancellor was quick to highlight the gravity of the situation. given between the case under world trade organization law this takes it beyond an arbitrary question to a verdict in accordance with international law which now hangs over arab us one must sadly say. we have to see how the americans will respond by says arm once video of only qana it's the. scene. european union has so far made it clear it would bring forward retaliatory tariffs if necessary they would come on top of tariffs the e.u. wants to impose on the u.s. following the w t o ruling over boeing subsidies the decision on the penalty in that case is june around 6 months time with the aerial jewel set to continue into 2020 and beyond both sides are in for the long haul. across now to our financial corres

tariffs of 7 and a half $1000000000.00 on its that's for illegally subsidizing european plane maker air bus in a 1st step the u.s. has announced new duties on aircraft and industrial and agricultural goods it sets the stage for a further extension of what's already the world's longest and costliest trade dispute. u.s. president donald trump isn't a fan of the world trade organization but he may have changed his mind on wednesday during a press conference with his finnish counterpart he said the w t o ruling was very good news for the u.s. efforts. beginning oct 18th washington will impose new tariffs on e.u. goods including 10 percent on aircraft and 25 percent on other industrial an agricultural products. it's the latest move in an epic 15 year battle revolving around europe and its airbus on the one hand and america's boeing on the other the w.e.o. has found both the e.u. and the us guilty of paying on lawful subsidies to their respective plane makers before washington announced its response to the w t o ruling germany's chancellor was quick to highlight the gravity of the situation. noth

united states because on top of the sales prices will come these new tariffs and that means a fewer air bus and if you're selling a plane to a u.s. airline then the u.s. airline will have to shoulder that tariff on top of sales price the airline can of course choose to pass that on in the terms in the way of higher passenger tickets if it get away with it and that very competitive market and ultimately the passenger will be paying for it and the same goes for wine or cheese you can pass that on to the consumer you can also choose if you don't want to worsen your competitive position to suck it up incur perhaps losses and slash jobs in order to make up for it and of course the e.u. says it will hit back is this the start of yet another trade dispute. well it's a continuation with with a new level of escalation and i mean you just mentioned the word to for tat in the next year the e.u. will have its case decided and it might be able to slap tariffs on u.s. wares coming in because of its claim of unfair subsidies for boeing. and bring a lemaire the french finance minister has said after a meet

had illegally subsidized aviation giant air bus to the detriment of u.s. rival boeing and its future still ongoing but european food producers are already sounding the alarm. this is parma the italian province that's been producing hard cheese for 9 centuries. jannie back to nelly's families be not it since $895.00. much of his product is banned for the united states it's the 2nd most important export market for parmigiano after france. but one week from now the cheese will be subject to a 25 percent tariff. for the whole region of parmigiano reggiano for those farmers this was a slap in the face because of course when we no longer have that export market for the cheese will be forced to lower the price here and after that we won't make any money everything we earn is from parmigiano reggiano or. parmesan cheese is just one of many european agricultural products the united states is targeting up to the world trade organization rules of the e.u. had been illegally subsidizing aviation airbus other goods affected include french wine. and spanish almost. in m

i don't -- i really -- i haven't really thought that much about air bus.en really more focused, as you have, on boeing and finding the fix and making sure that it's the right fix and again, back to my point, 100% safe, assurance to the flying public i think that's what members of congress are looking for >> what do you make of this ongoing dispute, mr. secretary, between the manufacturer and the pilots alpha continues to suggest that a lot of this was not because of any kind of pilot training and historically that had been boeing's defense in the past is that going to get resolved one way or another >> of course it will be. i think when the final report comes out and the final recommendations and boeing finally steps up and says here's what happened, here's what we i think that's really what has to happen, so again, the pilots, the flying public and everyone knows what really went wrong they're going to have to disclose that before people are going to really feel safe on these planes and take full responsibility for what happened >> we'll learn a lot more

to punish europe for illegally subsidizing plane maker air bus. joins us now from wall street as fresh tariffs are planned against the e.u. and china are we going to see the trade deficit shrink. not necessarily the trade deficit is the ratio of exports to imports and the u.s. economy is still seems to be due to do better than many other nations on the planet consumptions remains as strong or healthy in the u.s. so we could even see further widening of the deficit and if you look at some industries for example the sure industries 90 percent of shoes sold in the united states are actually made overseas so if you want to wear new shoes you still depend on imports and speaking about tariffs let's also wait and see what happens to trade talks between china and the united states which will be. that which will start again next week in washington well we do know that shoes make the world go round but another market moving news a much awaited jobs report is out can you break it down for us overall the job market still remains healthy the unemployment rate

products the move is the latest in a lengthy 15 year battle between european aircraft manufacturer air bus and its american counterpart boeing the european union has so far made it clear it would bring forth retaliatory tariffs if necessary you defend the free and 5th rate based on a level playing field and 20 plus. we will not be naive but we won't be reeling and determined to be cities and if someone is imposing tell us on. we will do exactly the same the world trade organization has found both the e.u. and the us guilty of paying unlawful subsidies to the respective plane makers with the aerial dual set to continue into 2020 and beyond both sides are in it for the long haul. well u.s. secretary of state mike compare was given a surprise present during his visit to rome parmigiano reggiano cheese to be exact in italian t.v. journalist david superimpose say the cheese was probably the best in the world and made with heart by talian pharmacies with west at pump a 0 share it the us president donald trump is considering new terrors against you products including cheese. on november 1st chris

of illegally subsidizing air bus and the world trade organization agrees the e.u. has a countersuit pending with the organization and it is expected that the w t o will soon allow the e.u. to apply tariffs over a legal boeing subsidies but for now sanctions are a one way ticket from october 18th on washington will impose new tariffs on imports from the e.u. 10 percent on aviation products and.

states they will have to slap the tariffs on to the price that they charge us customers for example air bus will have to slap the price onto an airplane that an airline in the united states wants to buy and then the airline has the choice of either passing it on to the customers and in the form of higher ticket prices or sucking it up and having pressure to slash costs elsewhere to make up for it if it doesn't want to make a loss and finally go bankrupt and it would be similar for other people affected winemakers or cheese makers who sell their wares in the united states they're the retailers ultimately would have to decide what to do so obviously the going to hit back. it's prepared to head back bruna lemaire he's the french found in this finance minister reiterated that just now he met with u.s. finest minister stephen minutia and he said the e.u. is prepared to hit back with counter measures and it's already known of course that it's not just the u.s. . pleading in front of the w t o an unfair subsidies for airbus but the e.u. is having a counter claim with the w t o unfair subsidies for

had been illegally subsidizing aviation attorney and air bus other goods affected include french wine. and spanish all moves. in madrid farmers have been taking to the streets to voice their opposition to the levy. but are not good to be trump wants to impose a 25 percent tariff we can't compete at that price in the traditional olive groves we're going to ruin them. with trade tension between the united states and the european union he sing up many farmers fear and all of france alone won't be enough to end this dispute. and out to some of the other global business stories making news. french carmaker rhino has fire chief executive officer of evil all that comes after reynolds patna new son named a new c.e.o. both carmakers wanted to get past the scandal around former chief carlos goan jailed in japan for alleged financial misconduct. the c.e.o. of german software manufacturer a s a p bill mcdermott has unexpectedly resigned germany's most valuable listed company has not given a reason for his departure after 9 years in the post he's been replaced by a board members jennifer morgan an

of illegally subsidizing air bus and the world trade organization agrees the e.u. has a countersuit pending with the organization and it is expected that the w.t. o. will soon allow the e.u. to apply tariffs over a legal boeing subsidies.

old rules and you was here actually on the wrong side while it w t o law illegally subsidized air bus does must and no yes we have seen this for 15 years now on both sides of the atlantic it's not just the us also the us but i think these are the leading. manufacturers and they should 1st of all lower their subsidies and then other countries like brazil and canada might also follow to lower subsidies to deviation industry that would be really important if we look at how the the trump administration is handling this particular trade conflict would it have been different i mean did the trade convey as we just learned has goes back 15 years would it have been different had the differently and under the bush of the obama administration see reckon. in this very topic a don't think so and as i just mentioned the u.s. response was quite moderate that is in contrast to what the trumpet ministration international trade usually does but yeah we have to see this dispute also in the generally very hostile environment in international trade so it makes it difficult to reach an agreement but i thin

organization that washington can retaliate over state subsidies which benefit the aerospace company air bus the tariffs will go into effect in 2 weeks and will not apply to aircraft parts. we'll have more on this story in business with right after this bullet are here some of the other stories now that are making headlines around the world u.s. aviation regulators have ordered inspections of nearly 2000 boeing 737 aircraft after structural cracks were found in some of the planes the order applies to 737 next generation models the precursor to those boeing 737 max aircraft the max of course you may remember was grounded following 2 deadly crashes earlier this year u.s. senator bernie sanders has canceled events in his presidential campaign after undergoing heart surgery for a blocked artery for his campaign says that 2 stents were successfully inserted after he experienced chest pains and 78 year old is a front runner for the democratic nomination to run against president truong. now to iraq where violent anti-government protests are spreading across the country at least 7 people have been k