develop a relationship with airbus.t of very valuable stock in vienna. it is a small operation. this summer, they will only have 20 aircraft. we think it will double in size over the next three or four years subject to what is being able to secure additional airbus aircraft. will be in operation we have acquired at a low cost out of the air berlin bankruptcy. lufthansa had -- agreed to buy it, but we picked it up for about $60 million. we are working closely with them to make up the number one low-cost airfare and austria. manus: you touched on two things there with airbus. the question that goes around in our mind is how seriously you are about airbus or is it just a tactic to drive the going price is down on the 737? >> we have already secured a terrific pricing on the boeing. the most exciting thing about the ryanair story at the moment, is in the spring of 2019, we take the first of the boeings. 4% more seats and 60% lower fuel consumption. position very exciting in the ryanair growth story. always been skeptical ab

we have these on airbus.et's take a look at where treasuries are, as we await a big week for the fed. an expectation of the flat curve would be nice. we will hear from the bank of france governor. the treasury yield at 2.96. the curve continues to flatten. data tells us the market is still interested in shortening. let's see what gmm is telling us. a couple things worth highlighting, central and eastern europe have a solid and to the week last week -- a solid end to the week last week. so much political focus -- this is the ndf, which is continuing to appreciate. the brazilian real is under pressure, and the argentinian peso is something the markets are interested in, despite the ongoing story we have been watching in turkey. let's get a bloomberg first word news update. juliette: thank you. the u.s. is ready to allow investments in north korea, once it has verifiable proof of its nuclearization. that is according to two of president trump's national officials. john bolton told abc's this week we are prepared

it is very competentm is notjust airbus, but across the auto sector. food, as well.ompanies are exposed. it is the problem. thank you for your time and comments this morning. course, we mentioned these meetings are ongoing between the iranian foreign minister and some of the key delegates in europe, in brussels, so we will keep oui’ europe, in brussels, so we will keep our eye on how they fare today. japan's economy, which is the world's third biggest, shrank by more than expected in the first three months of this year. the annualised contraction of 0.6% ended the longest stretch of economic growth since the 1980s. 0ur correspondent rupert wingfield—hayes is in tokyo. why such a bad start to the year? well, sally, ithink why such a bad start to the year? well, sally, i think this is an indication ofjust how difficult it is to get growth, long—term growth, back into the japanese economy, despite having very much full employment here and massive economic stimulus over the last five or six yea rs. stimulus over the last five or six years. consumption is still pretty muc

airbus spokeswoman said it would welcome a proposal to settle without preconditions.japan displaying have fallen after a report apple has decided to use -- screens for all new models next year. south korea's electronic times sites unidentified up industry officials for its report. samsung's display has been the soul supplier for use in apple phones. a representative from samsung display declined to comment. that is your bloomberg business flash. manus: juliette, thank you. we will not get to the co-ceo of standard life aberdeen. they have planned to return capital to shareholders, 1.70 5 billion. martin goldberg -- martin gilbert, always ready. good news for shareholders this morning? margin: i hope so. i hope they think it is good news. we certainly do. manus: can we expect more? you say you have a surplus of capital within the group. is this step one of a bigger move? shaun: no, i don't think so. martin: this is what we think at this point in time should be returned to shareholders because we have such a surplus of capital. needld say that we still to talk to regula

european aviation giant airbus and its u.s. rival boeing. wto ruling oppose the claim by the u.s. that the european union has been illegally subsidizing two kinds of aircraft made by airbus. the a380 super jumob, and a350 twin aisle jet. that, says the trade body, has led to lost sales for boeing. the decision and it was the u.s. to seize the eu. a u.s. trade representative had this to say in response. to this report confirms once and for all that the eu had long and -- ignore wto rules and even worse, eu aircraft subsidies have cost american company's tens of billions of dollars in lost revenue. the eu says it will take swift action to ensure it is in line with wto rules, the pointed out the vast majority of u.s. claims were rejected. but the story doesn't end there. the eu has brought its own case against the united states, accusing it of illegally subsidizing boeing. the outcome of that case will not be known until later this year. the tit-for-tat battle to dominate the skies comes at a time of already soaring trade tensions between the u

airbus says they have repaid loans, boeing says this was damaging. it has hurt aircraft like the 747 and so on. found that some of the subsidies weren't correct. many were, but some were not. there is a second ruling in october that will look at the boeing case and in the meantime, it looks as if the two parties are trying to come to some kind of an agreement. there are potentially billions in fines on the table and neither side wants to pay these. they want to get on with business and probably take an -- keep an eye on china. how do you get on with each other and keep an eye on china? up 35% in 12is months, but boeing is up 90% the last year. thanks for joining us. bloomberg's managing editor for global business. we are minutes from the open of trading. it could be a volatile day. watchl look at stocks to at the opening, including standard life, which is returning 1.75 billion pounds to shareholders. this is bloomberg. ♪ matt: we are minutes from the open of european stocks. let's get the issues to keep an eye on today. joining us from our equities

reporter: boeing and airbus are trying to figure out what to do with long-term deals in iran. most immediate impact will be felt by airbus, because they're already delivering planes under a deal that was written in 2016. now it may be a european country but the components inside the planes are american. that false under the sanctions there. boeing is looking at a long-term hit here because last year they signed a $3 billion deal with an airline in iran to deliver planes. in total, boeing has agreements for $20 billion to deliver 110 airplanes. the ceo says the differences, though, that i have not started to make those planes. >> we had not made any skyline production slot commitments on those airplanes, and i think most sensitive to that was the 777 line or wide body line and none of the airplanes are in our back. reporter: and one major concern for the ceo of boeing is if airbus removes the american parts out of the airplanes, then they could sell to iran, possibly looking at chinese parts there. the ceo very concerned about the next step there. >> it's very important to us t

was doing with airbus. so this argument doesn't end any time soon it's a victory for now but as you know this this type of thing doesn't just go away it's going to keep keep pushing forward and we're going to find out for months what's could be decided in that case in the e.u. an airbus versus boeing and the united states alex think about all these conversations we've had over the last several months about you know the trade wars etc you know how do you think this decision this decision plays into the larger picture of the trade disputes between the u.s. and the eurozone. it's massive because right now the u.s. has the ability to put sanctions up against the e.u. because of the subsidies that the decided are really were happening so from that respect that's huge and this is a relationship that's on shaky ground as is don't forget the paris accord with the u.s. walking out of the climate change accord and then of the iran deal that now happened in the threats of tariffs that have been happening now for month

guy: airbus makes planes in alabama. how does the u.s. react? in question are not the ones they make in alabama. the planes here are the 380 in the 350. .here's a certain irony it's a millstone around airbus's neck. boeing says they could've solved more 747's if the 380 hadn't received this kind of launch aid. it's still a bit of an academic debate at this point. airbus says yes, it wasn't all perfect, we were not really a great fold and they will come back at the end of the year and say look at boeing, they did something similar. by the time this winds its way to the courts and into actual sanctions, it's probably going to take a lot more. you would always understand why some of us to go with -- matt: you would almost understand why someone wants to go with unilateral tariffs. was change your now's we have a different a minister asian the u.s. that is a lot more aggressive when it comes to imposing tariffs and protecting their own companies. boeing is certainly one of these companies. they've done very well out of trouble demonstration. we've h

yvonne: washington may be ready to resolve the airbus subsidy spat. it could mean europe avoids u.s. sanctions. hello from hong kong, just past 6:00 a.m. i'm yvonne man. we are two hours away from the open of asia's first major market. haidi: just about 8:00 a.m. in sydney. i am haidi lun. i will be taking a look at the action, or lack of action on wall street, playing into the asia-pacific trading. there is not a lot of risk on the table, not a lot of momentum given we had u.s. markets shot memorial day, the u.k. off for their spring bank holiday. a number of southeast asian markets, singapore, indonesia, malaysia, are going to be closed as well with the celebration of the buddha's birthday. yvonne: this could magnify the move we have seen particularly with the contagion in europe after the president of italy, asking carlo cardarelli to form a new government after he blocked his proposed populist coalition. let's bring up the boards to check on the biggest moves we have seen. for memorialclosed day, so we do see u.s. futures paring some gains this mo

united states that the european union has been illegally subsidizing two kinds of aircraft made by airbus the a three eighty super jumbo and the a three fifty twin aisle jess. that says the trade body has led to lost sales for boeing the decision enables the united states to seek the right to impose sanctions against the e.u. u.s. trade representative robert litan hisor had this to say in response. this report confirms once and for all that the e.u. has long ignored rules and even worse aircraft subsidies have cost american aerospace companies tens of billions of dollars in lost revenue. the e.u. says it will take swift action to ensure it's in line with the rules but pointed out that the vast majority of u.s. claims were rejected but the story doesn't end there the e.u. has bought its own case against the united states accusing is of illegally subsidizing boeing the outcome of that case won't be known until later this year the tit for tough battle to dominate the skies comes at a time of already soaring trade tensions between the united states and think european union most recently conce

airbus as well as down by 1.05%.rg first word news. >> france, germany and the uk's say they regret president trump's decision to withdraw from the iran nuclear deal. is a move that could open an uncertain chapter for the middle east. he called it horrible and one-sided. >> at the point when the united states had maximum leverage, this disastrous deal gave this regime, and it is a regime of great terror, many billions of dollars, some of it in actual cash, a great embarrassment to me as a citizen and to all citizens of the united states. iranian atomice energy organization to be ready for action if needed so that if necessary, we can begin our industrial enrichment without any limitations. until and limitation of this decision, we will wait for some weeks and hold talks with our friends and allies and other signatories of the nuclear deal. those who will remain loyal to the deal will talk. britain's prime minister has suffered fresh defeat over a brexit law. in government lost for votes the house of lords yesterday w

of course you have got airbus, but that is about it.hey will continue going forward getting tons and tons and tons of business as you move forward. i will promise you, if a deal does get done with iran they will have the 100 and some odd planes in a deal eventually, but that is down the road. >> like gary mentioned the difference between airbus and boeing, boeing doesn't have those plans, those 110 that were destined on the backlog where airbus was set to deliver 95 planes. there is a little bit of a difference. like gary mentioned before you have a ceo has been preparing for this deal. he said even a month ago to investors he will delay the delivery to iran. so he kind of knew it was coming. >> interesting, interesting stuff. the market is still higher, though off highs earlier in the session. gary, chris -- kristine n thank you very much. >>> nancy pelosi, can't help herself and not doing herself any favors. the house minority leader is all but guarantying hike being taxes if the democrats win in november. how will that play in peoria

dollars some companies also airbus want to get now as many deals as possible through before sanctions are imposed and t.n.t. admits it made a big mistake hiring this man michael cohen but all trump's personal lawyer contractual payments amounted to six minutes past six hundred thousand dollars are now under the spotlight as cohen is under federal investigation he was hired to advise eighty into your new trumpet ministration which the firm's c.e.o. now says was a serious misjudgment the lawyer for adult film star stormy daniels revealed earlier this week that a slew of companies paid cohen to get information on the presidency the disclosure of the company's relationship with cohen could affect whether an eighty five billion dollars deal to buy time warner gets approval next month one which donald trump called not good for the country. wall street titan j.p. morgan chase has become the latest fund to apply for a controlling stake in a chinese securities venture this comes just a month after beijing put new rules in place to open up the economy previously foreign ownership of local finan

airbus airbus that signed a deal back in twenty sixteen for one hundred planes for iran that was a deal that was worth billions of dollars now what's the iranian minister is saying is that airbus is going to announce what it's going to do in the next few days and what that will mean is either that air bus will continue and deliver on those planes or it will have to pull out of that deal and that of course again is going to be bad news for iran and also bad news for the european plane maker because it could mean of course the loss of many jobs especially here in france where air bus is based thank you natasha butler singapore will host the first meeting between the u.s. and north korea leaders on june the twelfth president donald trump announced the date and location on twitter he had previously said he wanted to meet kim jong un in the demilitarized zone on the border between north and south korea now that's where the leaders of those two countries held their first summit last month. the announcer was made off of the u.s. president welcome home three americans freed by north korea they

they include airbus, the oil giant total and the car makers, renault and peugeot.energy giant bp could also be affected. 5% of the uk's gas cames from the rhum field in the north sea, which bpjointly owns with iran's state oil company — but bp is trying to sell its share. well, andreas schweitzer is managing director of arjan capital and advises companies on trading in iran. welcome to you, thank you very much for being with us this morning. good morning. good morning. so you are an advisor, what is your advice at the moment? we advise corporate 's on the trading in the middle east, and obviously a line is a very large market. the first advice was be careful and take good legal advice. what i think is going to happen now? what i think is going to happen now? what i think the european countries can try to do to stick together, if thatis can try to do to stick together, if that is what they need to do to protect themselves and the companies that operate within their countries from what president trump wants to do? there is a talk during counter legislation by the eur

from the airbus side, airbus is have beensed and arguing for a well there is not theyis for sanctionsve made a profession since a wto report earlier this month found that they had not sufficiently come up with a all, it, so on all in is an interesting case for over a decade, and this is a significant development, one that may result in a peaceful conclusion. francine: what happens next? ben: this online at the moment is not totally clear. we are still waiting for the eu in the u.s. to actually sit down now and talk. that will probably be the next step, if they agree on the actual meeting. airbus has already said that they support these talks. but if there are any they have said they would be prepared to sit down based on a list of preconditions. whether that will be a trump point remains to be seen. francine: ben, thank you so much, ben katz. i am a little distracted, because i'm looking at a chart from italy. 1.15dollar dropping 54, the lowest since july. we have a spread for you. we will bring that shortly. if you look at the spreads, you see the italian bond yields and of course th

the nonwhite line, meant to be .lue, is airbus airbus shares are falling today.he plane maker has 95 undelivered planes bound for that and a backlog includes 16 crucial orders for its biggest plane. bloomberg intelligence says airbus is likely to take greater market share in iran over the despiterm -- long-term, u.s. policy. the are key and say this will build a strong relationship with the iranian government and work week to enter the market upon lifting the sanctions. total, theine is european oil firm most exposed to the impact from trump's decision. it signed a deal in 2017 for the pause of gas fields in a ron -- iran. we have total rising because of the price of crude, which is pushing higher on the back of the trump announcement to a 2014 hi. m&a, another busy day. they agreed to by the german and the stern european -- buy german and eastern european shares, which does signal a bit of a retreat for the liberty global boss and owner john malone. thetransaction expands global footprint, a big incumbent inthe germany, deutsche telekom. the ceo does not like th

well only on friday we heard from one iranian minister who said that the european plane maker airbus is going to give a decision in the coming days on whether or not it will continue with its deal with iran and now basically airbus signed a deal with iran air back in twenty sixteen to deliver one hundred planes it was a deal worth billions of dollars but in this climate of uncertainty nobody knows what is going to happen next. still to come on the program the w.h.o. says it's preparing for the worst case scenario as more cases of ebola reported in the democratic republic of congo. i think believe. and the ousted chief justice of the philippines who dared to criticize the president calls her removal from office unconstitutional. hello and welcome back the weather across europe at the moment pretty unsettled across some central areas the risk of some storms that extends down through the balkans into southeastern parts of europe and across ukraine into western parts of russia we've got an air of low pressure giving some rain is also looking pretty unsettled across more western areas is

has a billions of dollars deal so suddenly airbus can't do this and look at the consequences these are things said by french and german ministers french foreign minister johnny. complained that quote we feel that the extraterritoriality of their american sanction measures are unacceptable the europeans should not have to pay for the withdrawal from an agreement by the united states which they have themselves contributed meanwhile french finance minister bruno demand asked yesterday do we want to be the assholes who obey decisions taken by the united states while clinging to the hem of their trousers or do want to say we have our own economic interests and remarkably the article goes on to point out that because of these the rainy and sanctions they're actually disgusting in very high levels in europe among the ministerial class of devising an alternative to the swift system again this is really important to the demise if the fewer dollars you have circulating the fewer the less power you have to mess up the system and destroy your enemies by cutting them off from the swiss system is ce

an airbus versus boeing and the united states alex think about all these conversations we've had over the last several months about you know the trade wars etc you know how do you think this decision this decision plays into the larger picture of the trade disputes between the u.s. and the eurozone it's massive because right now the u.s. has the ability to put sanctions up against the e.u. because of the subsidies that the decided are briley were happening so from that respect that's huge and this is a relationship that's on shaky ground as is don't forget the paris accord with the u.s. walking out of the climate change accord and then with the iran deal that now happened in the threats of tariffs that have been happening now for months on end so this bad relationship that we're seeing between the e.u. and the u.s. might just get worse when we're talking sanctions we're not necessarily talking about sanctions against the aerospace industry itself these could be sanctions in other industries in the european union that the u.s. can impose sanctions against and that's it could be all enc

most likely a company like airbus is going to s no, we probably need america. let's keep on going. it allowed basically iran to sell more oil to other parts of the world and the price of oil has already started going up because of even unrest whether mpor not president t would pull out of the deal. now oil prices are going up. -- the up. until be people who feel that at the pump but for the most part, the u.s. doesn't do a lot of busirass withn in general but gasoline prices, people might start to feel that ro rt: how much of this was about undoing the obama legacy? >> lot of it. two things going on. president tru's core fundamental bleach to the stefpbletthe has one iser that a has been shafted over the years. there's no deal basically since the 1980's that america hased into into that he thought was good flu. whether it's trailed or the iran onal. the s part is yes, everything obama did has a b, scarlet o. on it for him. whether it be his domestic or foreign policy. if obama did it, it must have en wrong. that was always going to be a problem for in iran deal. robert: the sim blo

it happened when the airbus a-319 was at 32,000 feet. suddenly the co-pilot's windshield shattered.he plane depressurized. the temperature dropped to minus 40 as the pilot made an emergency descent. passengers described food flying, oxygen masks dropping, the sound of rushing air. flight attendants yelling at everyone to remain calm. within 20 minutes the captain had made a safe emergency landing. >> everybody breathe, we are okay. >> reporter: the incident coming a month after southwest airline passenger jennifer reardon died after being partially sucked out of a boeing 737 window shattered when it was hit by shrapnel by an exploding engine. the incident in china appears to be completely unrelated. >> to have a window and then a windshield come out within a month of each other is just about unprecedented. >> reporter: the question for investigators in china, why did the windshield on this widely flown airbus plane suddenly explode? tom costello, nbc news, washington. >>> we're back with more after this. >>> a big announcement tonight in the battle over pot laws in cities and stays

they had airbus selling airplanes.re french and one of the world's leading reservoirs of natural gas and iran could over the weekend there was talk that china could rise out. the e.u. is no longer iran's biggest trading partner. neil: tell us why president trump did a u-turn on cte now offering to help companies save chinese jobs. >> this is very interesting. this is around about 750,000 jobs in china that could be lost if they completely collapsed and was pretty close to doing that. trump did not make it clear why he's doing that, but it is profitable and he wants to get some leverage and the chinese this week for the next leg of china-u.s. trade talks. also trying to get some leverage other bad is also trying to get some points with china at this point in his visit in june with the leader of north korea. many different aspects here. we're just not quite sure which one is the real one just yet. drain to thank you for joining us. always great to have you on the show. appreciate it. gerri: we will send it over to maria

threatening sanctions against airbus after a major trade organization.ton at cmp markets joins us now. good morning, michael. how will traders respond to this my friend? i have to ask you come are you surprised as i am to give eto is ruling in favor of the u.s.? >> i'm actually not surprised because the ruling that they made in 2016 in a thing for me, and if you look at the shares, they are pretty much unchanged on the day. they give extra ammunition to the trump administration about unfair practices on behalf of the european union. what i would say is a counter is that the wto is still has to rule on a simple case against boeing and the european union with similar practices. in the moment it's definitely a case of wait and see how this plays out. cheryl: also watching this. the retail sales number regard for its concerns about the fed here could be forced to raise interest rates this year. what do you think? >> the markets are certainly pricing for that. i really do worry about reading too much. they really only offset the kinds that we saw in january a

the airbus jet has been in service for nearly search years and chinese aviation officials say it hadefects and had not undergone any major maintenance before the accident. of course, they're looking into what took place there. >>> ten workers at dallas-ft. worth airport have been charged with conspiring to smuggle drugs across the country on commercial airlines. they were busted during an fbi sting accused of bypassing security to transport what they thought was meth. agents say the fake drugs were sent to phoenix, charlotte and newark. they say they broke up the operation when one suspect offered to smuggle explosives. >>> the head of the epa will likely face tough questions at a senate hearing today just as a new investigation into his e-mails gets under way. the epa inspector general wants to look at scott pruitt's use of multiple e-mail accounts. his actions including his travel and security expenses are now the subject of 12 separate investigations. >>> now to sports. lebron james did just about everything he could, but it was not enough to beat the celtics. the king poured in 4

companies with ties to iran, so psa, airbus shares down by 0.5%, renault also declining.et. on monday, investors will be paying close attention to 21st century fox. most analysts predict the company will be profitable, it has charged higher fees to satellite and cable distributors. but the earnings are the sideshow, investors are curious about whether or not the company has any updates about its pursuit of the european broadcaster sky and if the company has a preferred suitor. two us media giants are both vying to buy some of the assets of 21st century fox. things like the tv and film studios. why is there a bidding war? it has to do with netflix. they are worried the streaming service provider is hurting their bottom line and they think that if they can acquire some of these assets from 21st century fox, it might be the key to their survival. joining us is sue noffke, uk equities fund manager, schroders. the big on iran and companies sniffing around the uranium markets, but has there been a reaction to the the us is pulling out of the iran nuclear deal? not a big reactio

at the center of the dispute are the world's two largest plane makers european aviation giant airbus and its u.s. rival boeing the w t o ruling upholds a claim by the united states that the european union has been illegally subsidizing two kinds of aircraft made by airbus the a three eighty super jumbo and the a three fifty twin aisle jess that says the trade body has led to lost sales for boeing the decision enables the united states to seek the right to impose sanctions against the e.u. u.s. trade representative robert life hisor had this to say in response. this report confirms once and for all that the e.u. has long ignored w t o rules aren't even worse aircraft subsidies have cost american aerospace companies tens of billions of dollars in lost revenue. the e.u. says it will take swift action to ensure it's in line with w t o rules but pointed out that the vast majority of u.s. claims were rejected. but the story doesn't end there the e.u. has brought its own case against the united states accusing it is of illegally subsidizing boeing the outcome of that case won't be known unt

be in place many european companies will try to get as much business with iran down this possible airbus for example they want to speed up their process as now and get more planes early out to iran as originally scheduled we have to remember that airbus for example had this mega deal with a volume of one hundred planes with iran's national carry about once sanctions will be implemented it's not very likely that too many european companies will stay in the country the fear of very painful sanctions by the united states out there and companies are worried that they're very good and we have to face it even more important business with the united states at the end could suffer. it's monday can we expect this week. yes there is quite a lot on the agenda actually it will be interesting to see if it's going to be another strong week here at the blue chip index that's we have seen the dax now for seven weeks in the winning zone of class of ten percent during the past weeks and again over the thirteen thousand point mark so yeah let's see how this develops the quarterly reporting season is also s

says it is now can compliance with a ruling that prohibits subsidies for european aircraft maker airbus a block hopes to avoid possible retaliatory sanctions over the matter source of dispute between apple and its american rubber boeing for more than a decade both boeing and the us claim to the use below market loans for airbus models a three fifty and a three eighty amounted to unfair subsidies the w t o agreed in a may ruling the u.s. is pushing for a negotiated settlement in the case one of several major trans atlantic. staying in the united states a starbucks is closing the doors of eight thousand stores in america today to give mandatory and racial bias training to its one hundred seventy five thousand employees and this follows an incident in april in which two black men were arrested for trespassing while waiting for a friend in a philadelphia branch the company says the sessions will give employees that better understanding of how racial bias works starbucks c.e.o. kevin johnson apologized swiftly for the philadelphia incident and the company set of the both men for a two hundre

it happened when the airbus was at 32,000 feet. suddenly the co-pilot's windshield shattered. the plane depressurized. the temperature dropped to minus 40 degrees as the pilot made an emergency descent. passengers described food flying, oxygen masks dropping, the sound of rushing air, and flight attendants yelling at everyone to remain calm. within 20 minutes, the captain had made a safe emergency landing. >> everybody breathe. >> reporter: the incident coming just a month after southwest airlines passenger jennifer riordan died after being partially sucked out of a boeing 737 window shattered when it was hit by shrapnel from an exploding engine. the incident in china appears to be completely unrelated. >> to have a window and then a windshield come out within a month of each other is just about unprecedented. >> reporter: the question for investigators in china, why did the windshield on this widely flown airbus plane suddenly explode? tom costello, nbc news, washington. >> wow. >>> let's bring in nbc meteorologist bill karins with a look at what's going on out there. >> a da

forty billion dollars the largest deal was for iran and to buy one hundred planes from airbus carmakers rhino p.s.a. and volkswagen have moved back into iran about one hundred twenty german companies operate there are china is the biggest buyer of iranian crude so with european companies starting to count potential losses there were draw from iran could open the door to chinese firms. well the european union wants to calm tensions and salvage the deal with iran a french government spokesman said e.u. partners could fight the sanctions under world trade rules but look at the european union is ready to challenge at the w.t. yes any unilateral measures that would hurt the interests of european companies and respond in an appropriate manner in accordance of course before the rules of that international organization commits. well joining us now from vienna is be jennifer managing partner of austria based consulting firm r.t.a. international good to have you with us so let's talk first of all about iran's economy which is not in great shape to begin with how is the u.s. withdrawing from this

let me give you some examples, airbus employs 111,000 people in the uk.deal of $20 billion to supply 100 planes to iran bust up if they want to keep selling planes in they want to keep selling planes in the us, that deal looks dead. total, $5 billion deal overfive the us, that deal looks dead. total, $5 billion deal over five years, they have a big presence in the us, they have a big presence in the us, they may have to rethink their problems. shell had outlined deals with iran. the iranian state oil company owns half of the gas field in the north sea which supplies 5% of uk's gas, said the secondary sanctions, if you like, are very confiscated. borisjohnson and others said they want to keep this deal alive. a partnerfor international trade to carry on as if nothing happened but they also say, how uk companies act is a legal decision for that company. it is very unlikely companies will run the risk of incurring the rat, the penalty or lack of business with the world's biggest economy. with that economic benefit, iran might be the one that thinks what is t

-- after the airbus ruling.his is in addition to president trump's steel and aluminum tariffs. -- elon musk readies a reorganization of the top management team at tesla. bob rudd, who lighted north american commercial and northies sales -- led american commercial and utilities sales have left the company. musk declined to comment further. rudd couldn't be reached for comment. relianced bonds of munication some slumped after an indian tribunal ordered the wireless carrier be placed in insolvency proceedings. a $3.7ision jeopardized billion asset sale. and two of its subsidiary us will decide on the next quarter action after studying the detailed order. anna: thank you. the 10 year treasury yields reached the highest level in almost seven years. this morning, it is holding above 3%. the bond market has the attention of investors, who will look to the fed for guidance on rates in the united states. we had to san francisco fed president weighing in. three or four rate increases is appropriate for this year, and a fe

is said to be willing to discuss a deal with europe over claimed illegal -- he's given to airbus. a shift in position for the trump administration and could open the way to the e.u. avoiding billions of dollars in sanctions. we're told washington is ready to impose penalties for the - -if the two sides fail to reach a solution. the bank of trump's brand has won new trademarks in china, theing questions about -- government has granted provisional approval for another 8 trademarks that will be finalized if no objections are raised in the next three months. trump continues to profit from the business. bank of england is denying a rift with the u.k. treasury after the financial times said that two are loggerheads over prospects for the city. a report claims the banks cap the governor had fallen out with the treasury for giving way regulatory control. indonesia's new central bank governor has set the stage for a set and rate hike -- a second rate hike in two weeks. a day after being sworn in, perry warjiyo call for talks to support the currency as a move backft the rupia, pairring its

keep an eye on airbus on the back of this iran story and china o story.are dipping down a little bit. the treasury market is catching a little bit of a bid over the last couple of hours. we are flirting with that 3.1. lets show you the gmm. brazil took a tumble yesterday. mexico also trading down quite sharply as well. if the china deal works, does that make it easier for trump to push nafta a little bit further down the road and make it tougher on mexico and canada? that maybe the sense that we are getting from the markets overnight. columbia also trading lower as well. the colombian peso trading down. i will show you a chart later on in terms of indonesian local debt. it is starting to roll over in terms of the foreign interest that we have seen their. may be understandably. the indian rupee also worth paying attention to. let's show you what is going on more broadly in the commodities space. moyle, allat, paul caps in a bit -- palm oil all caps and a bit -- catching a bit. juliette: donald trump has said that libya is not a model for north korea. bolto

projects quote as far as legally possible terms decision is a direct hit on european plane maker airbus a contract for one hundred airliners for iran air now hangs in the balance. german companies are furious that trump is meddling in their earring in business. we need that means the business side needs leaders certainty on the one hand or the other if we have three european say we don't allow any iran business so then we have to live with that but it's a fair. level playing field that the u.s. says that we as europeans are not allowed to make business with kompany s. even e.u. companies that supply iran with goods for the food industry are between a rock and a hard place if trumpery imposes sanctions they could face legal consequences in the u.s. many won't take that risk and will pull out of iran instead. french president de manuel marquez has been in office for a year now and economists say he's done more in those twelve months than his predecessors did in many years he's managed to introduce some flexibility into the rigid labor market against stiff resistance and his changes are be

has a billions of dollars deal so suddenly airbus can't do this and look at the consequences these are things said by french and german ministers french foreign minister johnny. complained that quote we feel that the extraterritoriality of their american sanction measures are unacceptable the europeans should not have to pay for the withdrawal from an agreement by the united states which they have themselves contributed meanwhile french finance minister bruno demurrer asked yesterday do we want to be the assholes who obey decisions taken by the united states while clinging to the hem of their trousers or do want to say we have our own economic interests and remarkably the article goes on to point out that because of these iranian sanctions they're actually discussing in very high levels in europe among the ministerial class of devising an alternative to the swift system again this is really important to the demise if the fewer dollars you have circulating the fewer the less power you have to mess up the system and destroy your enemies by cutting them off from the just which system is c

thanks to the euro nuclear agreement airbus was able to secure a deal for one hundred aircraft with iran. however at least ten percent of the components for its clients come from u.s. producers and this detail is likely to pull the plug on the sale. of anything that has any us content and i mean dealings with us and then gets we exported to iran is going to come under scrutiny and i think that we need to be very very careful. competitor boeing which struck a deal for eighty planes with iran is also likely to be forced to cancel their contract along with various other aircraft producers among the companies french producer took tal looked at to cash in together with the chinese business it struck a fall billion euros deal to tap to south parcel field firearm now it seems unlikely that the country will be able to continue all its has in many markets. going to be a very significant one i mean what the markets have already. found is that yes there's going to be some tension prices have risen a little bit before the announcement was expected have come down a little bit since. international com