airbus is struggling to fix them, and that is causing delivery delays. one customer, qatar airways, is tired of waiting, and about two cancel it order. its archrival is boeing. the long haul a350 is also having problems, not delivering cabins on time. another jumbo is popular with airlines. experts expect production to be dialback. crack in the fuselage of eight military transporter, airbus expects these errors to cost them dearly, but has not posted an exact figure. experts say the cost cannot even be counted. brent: that is all your business news for the moment. megacities, many of china's sprawling cities are having trouble building infrastructure to catch up with the pace of the rapid development. dr., -- dakha, is experiencing growing pains. on the outskirts, one expanding district is determined not to make the same mistake. dakha is famous for its traffic jams, the bangladeshi city is growing. they could -- the government avoid the hassle of dealing with many property owners. instead, a subway system is eventually supposed to be built, but subways

core profits in airbus slightly exceeded expectations. despite a slump in earnings.hey warned of challenges facing production and delivery of a 400 and military aircraft. saying it is turning out to be, quote, the challenging year we anticipated. >> good morning. >> daniel still with us also. what do you make of the announcement coming from airbus and how challenging do you think 2016 is going to be for them? >> the first quarter they expected a lower quarter. and they would make that up as the year goes on. they are now talking about the military transport plane, saying there could be a substantial financial impact from the delays and technical issues they have been having. and on the civil side, they are saying demand is still very good. the customers still want the planes but on the big new wide body, we knew it would be a slow first quarter, but they are talking about challenges still in the second half. so raising questions on the ambitious second half catch up. >> is it demand? or also ability to meet capacity at the same time? >> the message this morning is th

. >>> france-based airbus delivered its first american-made aircraft. the airbus a-321 was produced at the company's manufacturing plant in alabama and was presented to its new owner jetblue yesterday. nine more aircraft are in production there. airbus plans on producing four a month from the mobile facility by the end of next year. >>> and americans arehanging the way they travel to their summer vacation spot. a new poll by airfare watchdog found 23% plan to drive to their destinations this year. that's up 18% from last year. 52% of vacationers. but that number is down eight points compared to 2015. anne-marie? >> hana daniels at the new york stock exchange. thanks a lot. >>> who doesn't like warm chocolate chip cookies? you should know this, that the supplier of chick-fil-a's chocolate chunk cookies are voluntarily recalling the treats. they might have come in contact with peanuts. they've stopped selling them for now and are encouraging customers to throw them out or return them for a refund. >>> still to come, ducklings in distress. ducklings trappe

guy: airbus?tional difficulties delivering some key planes, because they're pretty complicated things, but nevertheless, you wonder whether if the lower oil price great and environment whether i don't need some of these new planes which fly very efficiently. the story, iplay think this is a story to play. i would play it that in the coming companies very well placed to take long-term market share gains to generate long-term returns for the many people said we shouldn't go near rolls-royce, if you look at the benefit it gets on its service contract, it is very interesting. they take a loss when they sell an engine. if you look at the service price, they'll make a huge amount of money down the line. i think that rolls-royce will come back with the numbers over ae years ahead that could be surprise. that is putting the share price much higher. guy: what about maybe ge that has more exposure to the wide bodies? james: to become it is a base. amount thatt the airbus has been dependent on emerging marke

airbus says it is back on track.e will hear from the company's chief executive right after this. ♪ rishaad: airbus scrambles to overcome engine problems with engine option. the airbus chief executive says production plans are on track and teething problems will be resolved by the middle part of the year. it was largely planned just to gain enough maturity and to fix the small issues we have faced at the beginning. we are making good progress and toelieve we will be able really ramp up production. >> are you concerned because they might walk away? >> i do not think so. -- we have jointly decided to postpone. -- this issay is already a great success. mentioned, anyu progress? >> not yet. we are discussing with some potential customers in the region. this potential israel. -- is real. progress on that? >> we know we have the potential. we are studying what we could do with the aircraft. we have started to talk to some customers because we are not sure there is a market in this segment. we have the capacity to do one. ri

the company hopes to save $1 billion as it competes with its european rival airbus. they are expected to hit assembly lines, research and engineering. 80,000 employees are in the commercial airline division where most of the cuts will come from. of the 4,000 cuts will be voluntary layoffs. the union representing boeing workers say 1,000 have already applied for it. the other positions will be left veh can't by attrition. in an effort to reduce costs a total of 8,000 layoffs may eventually be necessary. joining us now from washington, d.c. is pedro acosta. an editorial fellow with the peterson institute for international economics. thank you for joining us. so boeing said that it has to make these cuts to make them more competitive to deal with airbus, it's competition, streamlining. is there anything else at play here? >> there the overseas markets is a major market for boeing. it's the largest exporter in the united states. so the weakness in the global economy does affect boeings bottom line. but boeing is not doing very poorly. it is facing stiff competition from

in other news, an explosion, a ball of fire, and 13 lives lost at the crash of an airbus helicopter off the norwegian coast. the flames have died down. the investigation begins now. norway has grounded all choppers of that make and model and reports are surfacing the helicopter had scheduled maintenance delayed twice last year. >> the airbus chopper was returning from a north sea oil rig when it crashed off the coast of norway. an eyewitness on the ground noticed the aircraft become erratic as it approached. >> a few seconds passed. it started to veer back-and-forth. three loud bangs. on the last one, i could see things were coming off the helicopter and then the rotor came loose. >> just after noon, the helicopter slammed into the rocky shoreline of turoey, the second-largest city. votes rushed to the scene. pieces of the craft were found on land, including the main rotor. the fuselage landed in the water. rescue teams recovered 11 bodies . by the end of the day, the announcement came the people missing were presumed dead. the norwegian aviation authorities have begun to investigate th

let's get there now, what we're hearing from airbus this morning.he airplane maker telling us that first quarter earnings is coming in at 501 million euros. that is nicely ahead of the estimate of 473 million euros. and they confirmed that the 2016 target, saying they're going to focus on the program to ramp up, and the transition to some of o-aircraft. they see deliveries, cash, earnings loaded to the year-end. and they're also giving us guidance around cash flows, 2016 is stable. the statement about the neo is interesting, a lot of the focus on the work they are putting into raise production rates of the single engine of the narrow body, and the neo begins production. that is a real focus. units on the backlog. a nice problem to have. but they did have unit issues, delays in delivery. the company said it was teething problems. more of what that means in terms of delivery, cash and earnings loaded to the year-end. that is what airbus is telling us this morning. sharel see how the shee price response. we have a busy day, waiting for earnings out of

it is retiring a dozen planes made by airbus by 2020.carlet: the company behind a american idol filed for bankruptcy. globalpany, co-owned by management and 21st century fox, owes the creditors almost $400 billion. that is the bloomberg business flash. it is time for the big reveal of the mystery stock. a little dimmer, a neustar on the horizon, the future will be sunnier? tracy: a solar company? lightbulb maker? julie, help me. julie: solar, that is what we are talking about. shares are down 11.5% year to date and down again today because they reported earnings. it has been a troubled interstate. there was the bankruptcy filing of con edison and not strong trading for many of the companies. it has been choppy this year and today is not helping. the company came out with a earnings but announced a change to the executive officer. jim hughes will be stepping down and will be replaced by the chief financial manager but that is not happening until july 1. hughes says that the succession planning has been going on for some time. shares are d

to eu, saidhe airbus. they said they would not relocate, but could reduce investment in the case of a brexit. two of america's top 10 airlines are merging. alaskan air is why virgin america for $2.1 billion. they have consolidated dramatically over the past decade. it helps alaska airlines break into the lucrative california market. states took significant steps toward a $15 our, wage, the highest in the nation. governors from both states signed a larger place today. today.ws into place today, we do something about that in a very significant way. we signed into law the minute voyage of $15 an hour to give voice to the power and fervor and belief of all the people standing here and all people i represent. it is not the end of the struggle, but is a very important step forward. keep it going. we're not stopping here. >> a french hotel group has unveiled plans to open up a hotel near the chÂteau of their side. the hotel is expected to open in 2018 and will consist of three buildings that have not been used to

liz: that is fancy. >> well, they have the same fleet, airbus.u have different type -- you know you usually,'s good to have like one time of plane. cost efficiency and things of that nature. here we go, hay see what happens monday, i keep hearing monday. but we'll see. from bankers, the companies are mum, mum. >> charlie. charlie break its right here. liz: attorneys general as i tell him, closing bell ringing in -- >> owner the week. liz: alaska airlines could swoop in. >> fed focusing on that unemployment rate it ticks slightly higher. next. i know what i can expect from usaa the usaa car buying app was really helpful. all the information was laid out right there. it makes your life so much easier when you have to purchase a car, so i've been telling everybody. save on your next car with usaa car buying service, powered by truecar. . . liz: markets very close to highes of the session. clearly people with money like the job as march report. let's bring in moody's chief economist john lonski. start with you, john. does this report push the fed clo

an object hit the fun -- the front of the airbus.is thought to be the first time a drone has collided with a commercial airliner in the u.k. although dozens of near misses have been reported. global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. you can find more stories on bloomberg at top . anna: let's check in on the live market action. the oil story out of doha is dominating market moves. the first significant attempt at coordinating oil output between opec and other countries in 15 years has come to nothing. hedge funds did want the summit to work out because if you look at the yellow line, we are looking at net long positions on wti in the days leading up to sunday. they were near a nine-month high. in the wake of the meeting, wti has tumbled. 38.59 dropping down below the $40 mark. it is impacting markets across the board. looking at currencies, we see the aussie dollar and the canadian dollar, the malaysian ringgit and the norwegian krone weakening today. from 100. the

shares of airbus trading down within 6%.isans and technicians into protests to occupy several theaters in paris since the begin. a deal is been reached to avoid cuts to the special income support. the system is facing a huge funding shortfall, but workers are resisting cuts. >> a breakthrough that has led to police german protesting workers some theaters in paris. and technicians have occupied several theaters since sunday, demonstrating against cuts to their special income support. they interrupted shows like "romeo and juliet." but the protests may be over now that unions have reached an agreement. includingt workers some, television and theater benefit from a system which supports their income when they are not working. unlike most french workers who have to work 610 hours to get four months of unemployment benefits, independent artists have to work 507 hours to get eight months worth of unemployment benefits. while some say the system is too generous, artist say it is necessary to support french culture. putting a projec

there were more than 130 people on the airbus. british authorities are investigating. laws in the country do ban drone flights within five miles of airports. >>> washington state police fear a missing couple were dead. not the result of random violence. they're looking for the read brothers. investigators believe the couple may have been feuding with one of the brothers over property. >>> the research suggest eating habits may become at lot of us. university of michigan researchers report that toddler could be guilty of eating when not hungry. it leads to an increase of body mass index. the findings also show how children's eating habits are influenced by adults. >>> johnny depp's wife has avoid jail time in australia after entering a guilty plea in court. she pleaded guilty for providing false information on a document in connection with allegedly is smuggling their dogs into australia. heard was sentenced to one month's probation. >>> okay, here's a classic case of being at the right place at a right time. a whale watcher had his camera on as a large pod was chased b

. >> air china says it will use an airbus a-330 for the 14-hour flight. >> tonight a san jose teen may have a little trouble sleeping. you see tomorrow he's headed to the white house. he is only one of only 12 students in the world to earn a perfect score on the a.c. calculus exam. up next, the white house science fair. he'll meet with scientists and other high level government officials. he was here in the newsroom, super humble, sweet, low-key kid. >> because he knows he's going to be our boss in about five years. >> i can't even spell calculus. >> congratulations to him. you're good with all this stuff, jeff. >> he was here asking for an internship. we'd welcome him. >> you can see we have cloud moving close toward san francisco and note some isolated thunderstorms up near reading. that activity will stay away from us. most importantly what does that mean for the morning commute? the cloud cover comes back as you get off on your morning from 5:00 to 7:00 a.m., this will put us to 46, more drizzle in san francisco and for the peninsula, the east bay remains county and contra costa co

airbus is offering an led system that mimics natural light. it's used on eastbound flights at sunset if you're heading west. it's offered on the new 350 models. >>> still ahead. backlash against gap and how girl power is being attacked for being racist. >>> late in sports, a hole in one for the history books. >> announcer: this portion of the cbs morning news is sponsored by seabond denture adhesive. no paste to use.witch from denture paste to sea-bond denture adhesive seals. holds stronger than the leading paste all day... without the ooze. feel secure. be yourself. with stronger, clean sea-bond. to folks out there whose diabetic nerve pain... shoots and burns its way into your day, i hear you. extraordinarily painful, i hear you. make sure your doctor hears you too! i hear you because i was there when my dad suffered with diabetic nerve pain. if you have diabetes and burning, shooting pain in your feet or hands, don't suffer in silence! step on up and ask your doctor about diabetic nerve pain. tell 'em cedric sent you. (brian)i'm brian. i wa

reporter: it was 12:50 p.m., final approach into london heathrow, when the crew of ba flight 727, an airbus a-320 arriving from geneva with 137 people on board reported it had been hit by an unmanned drone. the plane landed safely. in the u.s., 2.5 million commercial and hobby drones are expected to crowd the skies by the end of the year. if operators fail to steer clear of airports and planes, aviation experts warn there's a potentially serious threat to passenger planes. >> there is obviously a core of people breaking the law. they don't know they're risking a prison sentence or they don't care. >> one of those radio-controlled helicopter things went right over the top of us at 4,000. >> over the top of you at 4,000? >> roger that. >> reporter: in 2015, the faa reported more than three close calls each day between planes and drones. 1,400 for the year. researchers at virginia tech have created a computer simulation of an 8-pound drone striking a jet engine. the result? the total loss of the engine and potential crash. >> if they impact an airliner or other airplane, they'll do the same am

. >> while the damage to the airbus was limited to the exterior, a new plane was brought in to resume the flight that was carrying about 150 passenger and six crew members. none of whom were injured when the bird struck. >> a jane doe in a 47 year old cold case has been identified. >> the investigators are looking into whether her murder may be connected to charles manson. >> reet jurvetson was 19 years old when she moved from montreal to los angeles. her body was discovered in november, 1969 just a few miles from where supermarket executive leno labianca and his wife were murdered in their home. like the other manson murders, hers was savaged. she had been stabbed 150 times. >>> over in new orleans robert durst sentenced to seven years in prison as part of a plea deal for a gun charge. he will be transferred to terminal island prison in los angeles to face a murder charge there. he's accused of killing his friend susan berman to prevent her from talking to prosecutors in new york about the disappearance of his first wife in 1982. >>> now to the investigation into prince's sudden deat

the airbus a321 with 150 safely landed back in seattle yesterday. the strike involving at least two birds caused this nearly two-foot crater in the plane's nose. >>> a newly released federal complaint claims a jetblue pilot flew from orlando to new york while under the influence of alcohol. the complaint alleges a random alcohol test last year revealed dennis murphy jr. had a blood alcohol level of 0 .11, nearly three times the legal limit for pilots. if convicted, he could be sentenced to 15 years in prison. >>> breaking overnight, air strikes in syria hit a hospital and leveled buildings in the city of aleppo. at least 20 civilians were killed. rescuers searched through the rubble for survivors and rushed victims to other hospitals. the syrian opposition blames syrian president bashar al attacks. >>> another day will bring even more severe weather that will stretch from the southern plains to the southeast. large hail and damaging winds yesterday's outbreak brought this explosive super-cell thunderstorm that spawn a tornado over northeast missouri

. >> the damage to the airbus a321 was limited to that depth on the nose but a new plane was brought in to resume the flight carrying 150 passengers and 6 crew members none of whom were injured with the strike. >>> on the ground the agency charged with teaming airline passengers safe is being accused of waging an internal campaign of fear and intimidation. three employees told a house committee about poor leadership, ignored security warnings and retaliation against employees who speak up. they also accuse tsa top brass of discrimination and racial profiling. >> we have low morale, a lack of trust, and field leaders who are fearful to speak out and for good reason. >> if you tell the truth in tsa, you will be targeted. i call it the lord of the applies. you either attack or be attacked. >> the tsa can't comment on many of the specific allegations because of the pending litigation but did defend itself against some of the complaints saying that it encourages employees to speak up if they see evidence of security failures. >> the man once second in line for the u.s. presidency is now h

airbus lost in order for the ocean carrier that had planned to fit each plane with 840 seats, makinghighest capacity seating layout in the history of aviation. double-deckerhe planes in 2009. according to people familiar with the matter, the outgoing ceo will step aside and keep another role at ferrari. ceo was alsosler chairman of for ari. jimmy page and robert plan are to court to defend their songwriting credit to the classic stairway to heaven. they lost their bid to avoid copyright trial and the jury must decide if they ripped off the opening riff of a band named spirit that once played concert. and that is your business update. this is a chance for the two to trade notes. there also discussing the economic reports. editor joerg weisenthal is here to break it all down. >> i don't get the impression we should be reading too much into this. it's not weird for the president to meet with the federal reserve and it certainly makes sense for him to want to get perspective on things. good timing for them because there's a lot of interesting data. carol: the white house press secretary

airbus is a european company but it is producing airplanes in the u.s.321 rolled off the assembly line in mobile alabama. the plant says they hope to produce four plains a month. the major stock indices were down. good news this morning, futures to seem to be pointing to a higher open. >>> the justice department has approved a $55 billion deal for charter communications to buy time warner. the combined company is now the third largest carrier behind at&t and comcast. now you might remember comcast tried to buy time warner but federal regulators said the combined company would be too big. >> 4:54. new this morning, hip hop artist kid rock discovers his personal assistant dead on his property in tennessee. we'll have details coming up at 5:00 a.m. >> ♪ >> recovering after being hit by a car. this happened yesterday evening on the 3100 block of penrose drive. medics rushed the girl to aria torresdale hospital. authorities have not said who caused the accident. >> coming up on "action news" eagles quarterback sam bradford says he no longer feels like he is t

saying the object struck the front of the airbus jet. the flight with 132 people on board, landing safely. the airline saying in a statement, "safety and security are always our first priority and we will give the police every assistance with their investigation." if it is confirmed, it would be the first known drone collision with a commercial aircraft. but close calls are on the rise. >> for your information, we've had two reports of a drone at 900 feet to the left-hand side of the approach. >> i see three drones above the little village which was about two and a half miles out. >> you can see three drones. >> reporter: experts warning with the growing popularity of unmanned aircraft, there is a serious potential for disaster. >> sooner or later, we're going to lose an airplane due to a drone collision. >> reporter: while this object hit the front of the plane, this simulation from researchers at virginia tech's crash lab shows how a drone could destroy a jetliner's engine in just seconds. despite laws banning drone flights within five

now they will buy 37 from airbus. of $8.3ets have a price million.l since the largest jets. mastercard and visa are try to work out the new chip-based cars. they come up with new software to make the process faster. the new cards increased checkout time by 10 seconds for customers, an eternity for fast food. thank you so much. health care is a large part of the u.s. economy and also one of the industries being revolutionized by the advent of technology. athena health streamlines medical keeping for doctors and hospitals. they beat analyst estimates on first quarter earnings and coming straight from that is the ceo jonathan bush who joins me from his companies. >> pleasure to be here. david: so talk about the conference call. you beat on the earnings-per-share, i saw. talk about your business state. >> we are try to create the health care internet. we know that bearings will be there forever. people watch earnings because it is comfort food. howstock on the network, many doctors have decided to leave the use of enterprise software and try to do their

the norwegian aviation authority says it is banning all similar airbus helicopters from flying. the flight recorders have been recovered. janney played a white house secretary on "the west wing." today she had a chance to do the real thing. the four-time emmy award winner took the podium normally reserved for a secretary josh earnest, and hopes to bring attention to the nation's opioid epidemic. a reporter asked her food -- from her old show would support for the nomination. dayal news 24 hours per powered by our 2400 journalists and more than 150 news bureaus around the world. >> the big banks can't seem to make money the way they used to. they all reported double-digit percentage declines in fixed trading. do they rethink their commitment to the business? chris white is ceo and founder of bible markets and here to talk about it market conditions. this is a big theme that has emerged from first quarter results, specifically when it comes to someone like goldman. they were supposed to be the last one standing other than jb morgan. -- other than jpmorgan. we haven't seen trading

the pilot reported an object hitting the front of the airbus.t is thought to be the first time a drone has collided with a commercial airliner in the u.k., although dozens of near misses have been reported. powered by over 2400 journalists in over 150 bureaus around the world, this is bloomberg news. angie: crude producers failed to reach an agreement on capping output. always good to see you. oil,reprieve we got from we saw that a little bit. with this dropping down more than five dollars a barrel as result, is this short-lived? >> i think this is short-lived. no one has been good at forecasting oil prices. with the general assumption. the fundamentals of oil still a story of oversupply, too much stock in storage. the second quarter is a weak -- season for oil demand. back: with china coming perhaps, we did get better than ppi, also had exports and gdp figures that came out a little bit better. does that mean demand for oil is going to bump up from china? you are seeing some better statistics when it comes to truck sales out of china. remember

first quarter profit fell by 23% at airbus, but still beat estimates.n engine glitch stalled delivery of the a320 narrowbody jet. that's the bloomberg business flash. francine: thank you so much. u.s. central bankers get an interest rate hike for the third straight meeting but left the door open for june. for more, we are joined by our chief international economic correspondent, simon kennedy. simon, great to have you. when you look at what the fed did yesterday, they seem to to be a little more hawkish, and the market took it in stride. simon: a little more hawkish. that is why we aren't putting aside global issues; there are fundamental strengthen the economy, that powering ahead that they would really like for the backdrop of a rate hike. steady as we go for the moment, but not completely walled out. francine: what does it mean for the path going forward? i don't see how they can hike in june, given the risks. do you think they can? >> they could definitely hike in june. the fed, if nothing intervenes, they will hike. they are ready to hike. what the

here's what happens, an airbus similar to this one was reportedly struck by a small drone while landing in london. the plane landed safely. they think that the drone was operated by somebody in a nearby park and there have been no arrests made. but officials are not happy knowing that it could've could have been a much bigger drone with a much more difficult situation to the one amber heard and johnny depp have made an awkward apology to the people of australia. important to you on in the apology played in court after being caught smuggling her yorkshire terriers and australia. she pleaded guilty to providing a false immigration documents, she was spared jail time for one month good behavior. dari: imax is trying to help keep you fit. class to the big screen. the concept will feature images and sound as participants cycled through images synced to music all from the vantage point of a studio. the first is that to open on april 28. steve: that's always very interesting. giving you the most bang for your buck. dari: how amazon is trying to move in on everything. steve: and how a subway st

airbus will deliver the first planes built in its factory in alabama.andld the buyers could tap into banks to help. that is the latest bluebird business flash. betty: apple shares are in a bear market. where they are trading so far in the session -- down almost 1% ahead of the earnings report, which apple hopefully is going to pull out a surprise upside, but the stock has been in the doldrums. why? the iphone expectations will see the first decline in revenue this quarter. joining us now is the senior telecom analyst for bloomberg intelligence. so goes the iphone, so goes apple? >> it really does. it is over 65% of revenue. it is a higher percent of their profit. right now, it is everything to apple and it really drives the growth. when you have weak sales of iphone, you get weak overall sales of apple. betty: what is going on here with the iphone? john: my sense is that it's a couple of things. if you want to clock back a year and a half, september 2014, we had the introduction of the iphone 6. it was the first large screen iphone. it was a huge runawa

norwegian aviation authority said it is banning all similar airbus helicopters from flying. king harold and the queen have canceled a trip to neighboring sweden because of the crash. world's mostysics complex machines has been temporarily immobilized by a weasel. largest atom smasher, the large hadron collider has suspended operations because a weasel in baited a transformer that helps power the machine. authorities say the collider will be up and running soon. the same cannot be said for the weasel. it died and little remains of it. news 24 hours day powered by our 2400 journalists in more than 150 news bureaus around the world. back to you. make ated temptation to nursery rhyme reference is my crew asked me to but i did not. david: how big a risk is this for the u.s.? it may be a big enough deal they could prevent central bankers from hiking rates in june. >> there are meetings on the 15th than eight days later is the vote. i will have to make an assessment on june 15 what the likelihood is and right now it is a little bit unclear or it is unclear. unclear ons still june 1