could could deter the company airbus is also set to spend $40000000.00 to build new facilities in ad $275.00 jobs in the u.s. state of alabama the company intends to increase production of its a $320.00 models there it currently employs around 4000 people in the u.s. . and for more on some of the stories regarding these plane companies these big plane companies let's go now to chelsea delaney she's our financial correspondent in frankfurt chelsea regarding these memos from boeing these are old memos at the same time the pretty shocking how serious is the release for boeing it certainly is not really helping boeing's case right now boeing is really trying to get the f.a.a. and the u.s. airline regulator to approve the 737 max for to fly again and and these. boeing employees are making fun of f.a.a. regulators they're talking about sort of tricking them into approving the plane so i think this certainly is going to increase the tensions between the regulator and boeing which is one of the reasons why boeing had to let go of its c.e.o. late last year the f.a.a. for its part has said tha

our growth has been largely thanks to airbus orders. yes, we are going with airbus.orter: contractors wary of becoming to dependent on a single client, especially after watching prices at boeing. the french engine m maker managed to sell to boeing, airbus, and a chinese maker. this would not be entirely dependent on airbus. business isr now, doing great. airbus has so many orders they have a tenure production backlog, with -- a 10 year prododuction backlog, with 7000 planes waitingng to be made. gegenie: elolon musk couould gea massive bonus if tesla shares continue to rise. stephen: t the electric car makr is worth more than ford and general motors combined, rising in value due to increased deliveries and expectation in the industry that demand for electric cars will keep going up. on tuesday, tesla was valued just under $97 billion. elon musk could share a bonus deal. he could get stock worth almost $350 million. that is quite a thank you. genie: it is crarazy meyey. thanks for that. stephen carroll talking about business on "france 24." now, temperaments -- time f

all eyes on airbus one of the strong names today in the stoxx 600. the italian index off to a good start. a solid start for european forces and mainly around the potential signing date of the phase one deal between u.s. and china. china says it will lower the lev levels of reserves the banks must hold freeing up about $15 billion in funds about the eighth time the bank has cut since 2019 the triple r rates will stand. this was the main catalyst for equity moves overnight the shanghai composite up. we are seeing a big move in the minors with clear exposure there. in the uk, up 2.7% a lot of these are actually clustered in the uk. one of the reasons they are having a good start to the year and the decade let's talk about some of the price action in china and the asian markets. i believe this is the eighth triple a cut since 2018. the chinese authorities are really going for it when it comes to the triple r cut, how are markets reacting >> very positively a happy new year to you and your viewers there in europe. it is a very positive start actually to t

airbus has agreed to settle a corruption probe with regulators in the u.k. france and the us the cost in fines could be sky high. and the british government says huawei can be involved in its 5 g. network to some extent at least it could put a strain on its special relationship with the us. this is the day when you business robots in berlin welcome. german companies are restricting business trips to china after germany had its 1st cases of corona virus 4 of now being confirmed in the southern state of bavaria the very 1st involved an employee of automotive supplier. who caught the virus from a chinese colleague. look how tiny window in who has and you won't see much happening on the streets this couple hasn't left time for 6 days and that supplies will last them for plenty more so they say they don't feel trapped. i think we're trapped is a little extreme like the government necessary precautions to try to contain it as . soon as they were able to german chancellor angela merkel was in move in the fall opening a factory owned by german automotive component m

more or less, trying to be polite, but more or less, you have boeing or airbus.ou fly a lot of boeings and your longest flight is from atlanta do -- atlanta to johannesburg, a boeing 777. you chose not to buy the 737 max for reasons that were unrelated to what would later be a problem. is that it in vantage now because you have airbus 321, picking up more capacity -- an advantage now because you have the airbus three to when and are picking up more capacity than your competitors? airbus --ave the 321, and areairbus picking up more capacity than your competitors? ed: that was never part of the consideration when making that decision. david: when you were in bankruptcy, was that considered a friendly offer? companypeople of the students at it is not going to happen. ♪ david: you grew up input cap c. poughkeepsie, new york. david: you are an accountant at price waterhouse. ed: i was fortunate at price waterhouse. i moved quickly through the ranks, made partner at too early and at 33 years old that point that was the pinnacle of success. i met a company where the pin

there is excess capacity available to airbus.sting how they manage the shop floor, how they manage the supply chain, how they reallocate some of the resources. the 320 family is where the money is made. if they put out 860 planes delivered in 2019, the vast majority were from the single aisle. that is where the focus is. brooke: if you look at longer-term, is there an opportunity for airbus to take market share from boeing? benedict: it has been a hard duopoly for many years. the real question is what happens to the max? no one knows the answer. we have had the dramatic string of news over the last couple of weeks where the production stopped, the ceo departure. show how the duopoly develops. if the max continues to remain grounded and if these planes continue to pile up -- remember we have 400 built but not out there.axs if that continues, airbus can take more market share from boeing. the issue is can they then built the planes fast enough to service that huge demand? if you're a 737 max customer that you want your plane, take

what about airbus?us has reached an agreement with u.k., france and american authorities to settle a bribery allegations that has dogged the company for years. it is still subject to court approval and could cost as much as 3 billion euros. that is what was reported earlier. this is good news for airbus. they have been dealing with this for so long. one group of analysts said it is welcome news and puts the scandal finally to rest. anna: thank you for that update. stocks get all of the the stock team is watching on your bloomberg and by the mobile app as well. jpmorgan may have notched the highest profit in banking last year, but the people who made it happen won't see the proof of their labor. we will bring you the story you need to know. this is bloomberg. ♪ oomberg. ♪ matt: welcome back to bloomberg markets. this is the european open. jpmorgan is keeping annual bonuses at its corporate and investment bank roughly flat for 2019. manus cranny has the details. >> good morning. if we reflect back, j.p. m

, fewer than half what airbus managed to deliver last year.uy: it will be interesting to see what the 2020 numbers look like this time next year. in europe, volumes are ok today. european equity markets going nowhere in a hurry, up by just 0.2%. in terms of where we are with the german ten-year, we are now only down by one basis point, so we are a little bit better bid on the bond market today than we were yesterday. but are we going to continue to track back toward zero? $1.1122.ar trading to the big story this week is definitely going to be from a foreign-exchange point of view what is happening to the united states and china. this time tomorrow, we are going to be seeing that trade deal signed. yesterday we got news that the chinese are no longer being labeled a currency manipulator by the u.s. treasury. ofphen gallo, european head fx strategy at bm oh capital markets, now joining us on set. what is the outlook for the chinese currency? where does it go from here? stephen: it is important to run number that pboc is always going to remain a

when you look at the year airbus best year.ully claim market share because there are concerns involved in that. the longer the 737 max is grounded, the more opportunity airbus has. guy: the max has struggled to get the rate up. let's go from airplanes to cars. a daring escape from japan and is in lebanon, after spending a year trapped in the japanese legal batter. le. he is a fugitive. give a pressd to conference, sometime next week. joining us now is chris bryant to give us a sense of what is happening. expected to hear from him -- expecting to hear from him? >> i think we will hear from him next week. the tentative date is the eighth of january. it is one of the most anticipated press conferences in corporate history. an absolutely stunning turn of events, evading japanese justice and managing to get himself to lebanon. people want to know not just how did he pull it off but, it will be an opportunity for him to outline his defense. but also, settle a few scores. he is extremely sore about the out.e was pulled he wanted to pu

the affair was a factor in a year long management shakeup at airbus that ended as german c.e.o. tom enders stepped down last april when the military was reportedly slated to pay as much as $3000000000.00 euros to settle investigations that is roughly equal to the company's entire net profit for 2018 the settlement is still subject to court approval. now for a quick look at some of the other business stories making news brazil's antitrust regulator has approved boeing's deal to buy the majority of aerospace manufacture embraer the us play maker wants to take over its jet division to compete with europe's airbus in the market for planes with less than $150.00 seats deal still needs to be approved by regulators. the swiss watch industry federation says hong kong pro-democracy protests drag sales down by more than 11 percent last year on kong is the biggest destination for swiss watches but strong sales in other asian markets and the united states out of. now around $6000000000.00 chicks that's 6000000000 each year globally female chicks are it to become egg laying hens but males ar

is that an advantage now because you have the airbus three to -- airbus 321 and that is picking up moreacity, do you take credit for that decision? ed: that was never part of the consideration when making that decision. david: when you were in bankruptcy usa or said they wanted to take you over was that , considered a friendly offer? >> everyone assumed that was a foregone conclusion. the people of the company stood and said it is not going to happen. ♪ david: you grew up in poughkeepsie, new york. you went to college at -- you got your accounting degree. you are an accountant at price waterhouse. ed: i was fortunate at price waterhouse. i moved quickly through the ranks, made partner at too early an age, 33 years old and at that point that was the pinnacle of success. and i said, if i met a company -- if i am at a company where the pinnacle of success is 32, i need to learn more and continue to develop. i got a call and a friend said pepsi's hiring, got introduced to a person at frito-lay. i went to dallas, and i have always considered my training at pepsico my postgraduate work, becau

now to some of the other global business stories making news the head of airbus says he sees a great potential to expand the plane maker's operations in britain after bribes that the european company had previously suggested a post brags that u.k. could deter the company air bus is also set to build new facilities in the u.s. state of alabama. german flag carrier and its subsidiaries including austrian airlines have canceled all flights to and from tehran for the next 10 days it follows the crash of a ukrainian airliner on wednesday other carriers including air france singapore airlines and norwegian air are rerouting flights will avoid brocky and ukrainian airspace. ukraine's state energy group is suing russia's gazprom to compensate for assets seized during russia's annexation of crimea in 2014 the total is more than $6000000000.00 euros a decision by the permanent court of arbitration in the hague isn't expected until the end of next year. construction on a railway line linking finland with poland has begun in a stone rail baltica will connect the baltic states to the european rai

european aircraft maker airbus has announced plans to expand production at its plant in the u.s. state of alabama it's set to spend $40000000.00 to build new facilities and add $275.00 jobs in the city of mobile airbus intensive increase production of it's a 320 models there the company currently employs around 4000 people in the u.s. . aviation authority has advised airlines to avoid flights through iraq airspace amid lingering tensions between the u.s. and iran prior to the european aviation safety agencies advisory several airlines including. an air france adjusted their flight routes to avoid iraqi and iranian airspace this comes after u.s. drone strike killed an iranian general in baghdad last week and a ukrainian airliner crashed shortly after takeoff from tehran on wednesday u.s. and canadian officials say evidence indicated that the plane was shot down by an iranian missile. the fugitive x. chairman of nissan is having to get used to his new home in beirut where prosecutors have told him that he cannot leave the country lebanon's financial crisis also means that he will o

you have the airbus 321, are you picking up more capacity than your competitors?d: we are big fans of boeing and we hope to see the max fly but that was never part of the consideration when making that decision. david: when you were in bankruptcy, u.s. said they wanted to take you over. was that considered a friendly offer? ed: people assumed it was a foregone conclusion. the people of the company said it is not going to happen. ♪ david: you grew up in and poughkeepsie. ed: poughkeepsie, new york. david: you are an accountant at price waterhouse. write your money or business your ice water out ed: i was i would fortunate at price waterhouse. there i moved quickly through the ranks, made partner at too that age, 33 years old and at that point that was the pinnacle of success. and i said, if i am in a company where the pinnacle of success is 32, i need to learn more and continue to develop. i got a call and a friend said pepsi was hiring. introduced me to a person at frito-lay down in texas. i went to dallas, and i have always considered my training at pepsico my po

and let's stay in europe where the continent's aircraft manufacturer airbus has overtaking overtaken boeing to become the world's largest plane maker by deliveries the 1st change the top since 2011 that's according to industry sources airbus exceeded forecast sales to deliver $863.00 aircraft and 2019 nearly 8 percent more than the prior year u.s. rival boeing is still hurting from the grounding of its $737.00 max which is expected to continue well into this year this all comes despite air bus cutting its $21000.00 to liver goal in october citing industrial problems. over to japan where traditional farming is threatened by the country's aging population as well as urban migration from rural areas now vertical farms are popping up across japanese cities many of them in former industrial areas. in this form a factory near kioto 30000 heads of lettuce are growing under out official light with minimal human intervention the vegetable factory uses the latest vertical farming techniques 3rd ical farms may sound like science fiction but facilities like this are key to meeting rising food de

take a look at airbus and boeing over the last year no comparison.bus clearly outperforming because it delivered far more. boeing delivery's down 340, 345. they didn't deliver the max for most of the year and that's why you see a huge difference in deliveries between airbus and boeing >> to go back to your other point in terms of those financial settlements whether southwest, turkish, others to come, sizes coming the through turkish airlines we saw the other day were they expected or bigger settlements with americans and deltas of this world could it get bigger than people priced in >> reporter: they can get bigger for a couple of reasons. first of all, we don't know the exact amount that hasn't been determined for a number of airlines southwest it's an undisclosed amount and you'll see the same thing with american and united airlines and other airlines as well the reason it can get larger nobody is quite sure when these planes will be flying again. while these agreements are reached they are sort of open ended agreements not as if boeing says that's

billion. -- could cost airbus about $3 billion.artly responsible for -- global news 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries, i'm viviana hurtado. this is bloomberg. francine? tom? tom: thank you so much. equities, bonds, currencies, commodities. outdoing foreign exchange on that. futures rebound off a challenging two days. a curve steepening this morning. europe does not do much, oil churning a little bit weaker. gold advanced. 17.68. at 19 level, the yields are extraordinary. that should be right on the screen. we are four lower in basis points on the two-year yield, 1.40,o an extraordinary about two hours ago. 1.46 -- 1.44,even even 1.46. there, 2.07, down to 2.03 right now. francine: i am looking at similar data points. i wanted to show renminbi again because we saw a quite strong renminbi move. we saw a rebound in european stocks that lasted a little more than an hour, but then investors ' focus returned back to the outbreak of coronavir

how does this work and why does it make sense for airbus to be getting into a financial instrument likeout it, the industry's morphed over the last 10 to 20 years from an industry that was really focused on cash generation to one that's been focused on profitability and predictability and as it looks at predictability it's come up with various ways to hedge its costs. when you think about the cost side, you think about fuel, currency, interest rates the one thing that to date has not reallybeen predictable or as predictable as it could be in terms of financial performance has been revenue so as a partner with many airlines and understanding what the airlines are looking for, and i would say in a line partner because we, too, want a predictable airline industry, we put a team together and came up with a concept using data, large amount of data, to analyze flights and fares from around the world. and that's how and why we launched skytra. we think this will enable airlines to be able to be more forward looking and more stable in their performance going forward. so the realty of this is we

are on airbus airbus -- all eyes are on airbus. airbus has struggled with production of the 320 series because of the focus on the more expensive and longer aircraft. essentially, we will be looking to see if airbus can meet its delivery target that it set last year, which was for it hundred 60 aircraft, -- for 860 aircraft. reporter: thank you. -- alix: thank you. we turn to boeing now because newly released messages reveal a pilot saying the 737 max was designed by clowns supervised by monkeys. our bloomberg opinion columnist joins us from berlin. that was a taste of some harsh rhetoric from employees. walk us through what we learned and the significance going forward. reporter: some of these emails are really appalling and display a real call-up alere -- a real cavalier attitude toward safety, disrespect for the regulators whose job it is to ensure the aircraft that boeing builds are safe. after the two fatal crashes involving the 737 max, we know that is not the case. boeing is desperate to get that back in the sky. to do that,

a reversal in the pecking order between the two giants airbus and boeing had been expected as the crisis7 max drags on into 2020. patek philippe is one of the few luxury brands that's still family owned. the 180—year—old company also makes some of the priciest watches on the market. sharanjit leyl spoke to the fourth generation president thierry stern and asked if he'd consider selling the business. i'm not willing to sell, the fifth generation is going to take over, to be frank i think they know i'm not for sale and of course they will a lwa ys for sale and of course they will always try. we are only two family companies left. after that lucky said, they all belong to groups but is it good? i'm not sure. so at a time when you are seeing a global slowdown, trade wars, economy is slowing, how is that impacting your sales ? slowing, how is that impacting your sales? it doesn't impacted too much. as we are such a small amount of watches, the world, it's so big, if you compare yourself to another big company, some people would produce a million watches. i have onlyjust above 60,000. so there

pearson is one, airbus is another. airbus is down.e a canadian company is coming out with sales guidance at the markets are not liking it. part of it is down to its relationship with airbus. they are having problems with the jets and also in the trade business. that downgrade coming through from barnier. the world's biggest education company down soft -- down sharply. it is not working out. downgraded. down 8.44%. barclays is cutting jobs. it has been an interesting two days. you banks up massively. europeans not responding to that. we will talk about the numbers shortly. in the united states, pushing on the dow, 30,000. we will see what happens. do we get there? what gets us there? we are seeing a more positive picture emerging from the united states. we are seeing in europe the markets pushing on post deal. usmca about to be voted on. there is another catalyst. taking with what is happening with crude, up 1.7%. that is the global story. let's talk about the barclays story we were just mentioning a moment to go. developing of the las

airbus is starting to benefit from the grounding of the 737. airbus up 63%.a strong balance sheet. it does look like some effects of the crisis are starting to play into the fundamentals. the big fundamentals are taking a look at the free cash flow. negative for two straight quarters. first time this has happened since 2009. billionlooking at $3 negative in the last two quarters. it really has been a positive the last few years. they have had some downgrades. s&p.are rated a minus by with all of the ceo turmoil, some of the balance sheet fundamentals are being looked at more closely. vonnie: what does it mean for boeing? >> i want to take a look at a chart. we are getting reports that boeing they be looking at raising $5 billion in debt. why? given all of the turmoil, you can see we are taking a look at spread relative to treasury. they are really tightening when they came to market. points.d at 90 basis the tightening may not be a boeing story but a global risk story. flight to quality, flight two bonds. it seems like a good time for the company to be issuin

one of the big gainers is airbus up about 3.25 percentage points. the italian index up 1.2%.e had the final eurozone pmi manufacturing numbers came in slightly higher than expectations bester for italy, better for france and germany we are only about one hour into the trading session of what will be a very, very long year. >> just at the start certainly over here, investors will be looking at u.s./china relations. president trump will sign a trade deal in a white house ceremony on january 15 details of the agreement remain scant. the president planning to travel to china for the phase two talks in the coming months if there were ever a story to bleed into 2020, this would be it how great that we have you here in person for the start of the year >> it is going to continue to dog the markets because of all the uncertainty. state media hasn't made a peep that there is going to be any kind of signing on january 15. that is something to watch another thing to watch is what is happening with the economy. we have more disappointing data. the pmi is a survey for private smaller compa

. >>> airbus shares soar after the french plane maker strikes a deal to settle three international corruption investigations >>> uk prime minister boris johnson promises a huawei solution as they prepare to make a decision in the chinese rollout. >> there is no reason why we shouldn't have technological success in the uk to have access to fantastic technology but also protect our security interests >>> welcome sto "street signs. the death toll from the coronavirus has surpassed 100 and the cases have risen to 4,500. china says all but six of the deaths have occurred in wuhan where the virus is believed to have emerged on monday, the virus claimed the first victim in beijing. many remain on lockdown while lunar events have been canceled. >> the u.s. and canada have issued travel warnings to citizens planning to visit the region as the virus continues to spread abroad germany, slir lan kau and cambodia all confirmed first cases of the disease on monday u.s. president donald trump skr expressed concerns tweeting that the u.s. is in close communication with china ready to offer any help. a japane

if you shift all of your orders to airbus airbus has too much power.velop a home champion. even if they just take that china development, that is where a lot of demand is for planes. if they do become a significant player, you could see the duopoly start to crack. lale: that is a great point. i do not like flying and i am about to get a plane on sunday and it makes me nervous. i always think i'm going to die on a plane. you are going to be dead anyway so what is it matter if you're asleep. brooke: these headlines do not help boeing all they are trying to get the max back in the sky. alix: on that note. [laughter] brooke sutherland, it was good to see you. lale topcuoglu, thank you for joining me. happy new year. fun to have you. more on the state of retail and technicals to watch for calls. as you are heading out, check out bloomberg radio heard on sirius xm channel 119 on the bloomberg business app. this is bloomberg. ♪ alix: time for technically speaking. bill maloney, chartered market technician and voice of bloomberg's equity squad joints me now. w

airbus was accused of using on jet orders.prime minister boris johnson will urge the country to come together after years of division. the u.k. finally leaves the european union today. in a message, johnson will say an end, but a getting. "the curtain goes up on a new day onlobal news 20,000 air and on quick takes by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm courtney donohoe. vonnie: courtney donohoe, thank you. back with chris. yield go to0-year below 70ve the spread basis points and the s&p 500 is picking up speed to the downside as well. is this the end of january, or are these moves and yields a self-serving? >> there's hedging. we see a room -- a little bit of you see peoplend buying bonds when you see the yields going lower. actually i think we are quite close to a wave two. it is weak today. i think we will see a bounce back. i would not read too much into the bond market. wave ofit is a mini risk aversion. vonnie: if we don't pop up from put the federal reserve in a d

some more news, airbus is boeing is erasing some of its gains.y has posted its worst jetline delivery lost airbus that boeing has ever had in the last 40 have years. it just delivered 380 planes for the full year. it orders were -87, so actually lost orders last year. once again, for the full year, boeing just said it delivered 380 planes, less than half what airbus delivered last year. boeing also recorded five cancellations in december. this is bloomberg. ♪ ♪ chicago.s go to it's time for futures in focus. streibleet bro -- phil joining us. you sound a little bit surprised about why crude isn't a little higher from here. commodities we monitor at blue line, it is the fifth worst-performing commodity year to date. i find that completely shocking, especially with the develop its we have seen. geopolitical tensions have come off the board. a lot of the data has been real weak. we don't expect consumer demand with regards to gasoline this year to be as stellar as we have seen in the past, so i think oil prices still continue to track lower. $57.50

- airbus.able to deliver and companies have been affected. we made a strategic choice for airbus years before this thing. it is the best suiting vehicle we can have. it will remain effective for the consumers and stimulate the market. justine: we also saw yesterday airbus putting to bed concerns over bribery allegations. does it help in your negotiating or does it make no difference? jozsef: i don't think we are steps on aake short-term basis. we are trying to see the industry perform well. we are going to see competition going on in the industry. we will have a strong boeing and airbus and that should be the basis of moving this industry forward in the future. francine: thank you very much for joining us morning. -- joining us this morning. santander expected to reach the higher end of it capital. we speak to its chair after this. ♪ ♪ 97 basis points of capital shows the model is working, the transformation, the execution. it allows us to keep growth because it is also growth, not just revenue

, less than , butof airbus' tally shares are still climbing on strong delivery of the 787 dreamliner.he latest headline to drop on boeing was at the company is set for a newoaching citi loan amid the 737 max crisis. leading that talk with a smaller group of banks. the precise structure and timing of the loan is in flux, but the idea could be that it may be an investment grade term loan. amanda: one of the things we've been watching as we watch markets hit new highs is the health of that advance. this is a comparison of the smaller companies in the s&p 500, and the extent to which they have not participated in the new highs. you are looking at the ratio between the so-called equal every member s&p, or a market weight. it is at the lowest level since 2010 in january. it is the big names that are leading the advance. small names have yet to participate, at least on a market weighted basis. of course, you mentioned china's total exports expanding in 2019. trade with the u.s. dropped, as you might expect. trade relations hitting the two largest economies. could be sentiment changing tomorr

was unfairly subsidizing airbus, a larger dispute that wine importers say could sink their business.we are frantically air freighting one from france. 100% tariff will kill her business. imports 700 million euros worth every year. not to mention spanish and german bottles that have also been hit by tariffs. european and american negotiators have given themselves until the end of the month to work out a deal to avoid another tariff hike that could makeke drinking ench w wie an unaffordable luxury. the c chairman n of carmrmaker renault saiaid therea real desire to make their alliance with nissan work. there is a defense of the 20-year-old partnership between the countries -- between the companies after reports it wasas on the rocks. carlos ghosn was arrested in japan over a year ago on chances of f financial misconducuct -- charges hehe denies. senard said d there wawas norgey to supportrt a new ceo after the departure from the post.t. sasales of frerench carmamaker a plunged by 20% in 2019 because of a slump in the chinese market. psa owns peugeot, citroen, and brands.opel the chines

deliveries tumbled to just 380 just last year, less than half of airbus'.he european playmakers victories will was -- was its first since 2011 and only in's th since 1984. global news 24 hours a day, on-air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. nejra: thank you so much. later on today, we speak to dallas fed president robert kaplan. he suggested a bit of volatility in financial markets resulting from geopolitical tensions might not be a bad thing. don't miss that conversation at 3:30 p.m. london time. manus: coming up, we look at the yuan's strength. this is bloomberg. ♪ ♪ nejra: this is "bloomberg daybreak: europe." manus: i am manus cranny in dubai. ,et's stay with the china because the central bank added liquidity. to help offset that squeeze in the year ahead, that is really for the lunar new year ahead holiday. edging a, the yuan little bit lower today as we started the conversation. there is a chart that matters. dani burger, wind me up. dani: i would love to. o

let's talk about airbus deliveries.is expectant, waiting to see the delivery numbers from airbus and boeing. boeing, clearly other things on their minds, but this will be something the market is focused on. we don't know the timing of when these numbers are going to come. >> expect the numbers today. they usually trickle in late in the afternoon. it is a monthly fair. of 2019, they will get the full tally of where they landed. in thented to get vicinity of 860 deliveries. what we have been hearing is they actually slightly exceeded that. that is good news for airbus. it also means i have leapfrogged -- and they have leapfrogged boeing. this is not a fair fight at the moment. is behind on deliveries because of the grounded max. we have 400 planes sitting on the tarmac. if you factor that in, boeing would not look so bad. boeing does look bad. even if this most recent air crash was not mechanical fault, we have the emails from pilots saying the plane was -- what, designed by clowns overseen by monkeys? >> there is no way

the expedition was that airbus was ready for this, but it seems like the market wasn't. basically, the ramp-up of this aircraft costing more. is worried that this may affect the turnaround planned, and thus may walk away from it. that stock down 35%. vonnie: let's get to our first guest for more on the impact of the phase i one trade agreement with china on the markets, currency markets in particular. we are joined by jane foley, rabobank head of fx strategy. is this broadly seen as positive or negative, this phase i deal? guest: i think we had the market reaction really over the last few months that had been building over the course of last year on hopes that the trade deal would mean that we wouldn't have that negative pressure on economic growth. optimism has been building since the end of october. i think the question now is that now that we have the trade deal signed, will we have over the the shortfalls that we are hearing about in the phase one? will they come to the fore? the market will start wanting answers as to whether or not phase ii can really be signed. wi

airbus could displace boeing as the biggest playmaker.ny reports production figures amid the crisis of the boeing 737 max, the best-selling jet. boeing's new boss took charge yesterday, vowing to rebuild trust very let's assess the fate of boeing. -- to rebuild trust. let's assess the fate of boeing. the man advises many in airline sector. you have been visiting boeing. you have known this business for a long time. what is your assessment of the changing corporate culture needed under the new ceo? >> it seems to be vast. ceo of boeing what impressed me never having met him before was he was focused on the culture. boeing has been assumed -- seen anda fine engineering quality culture. i put questions whether it had changed, too much bottom line and cost driven. i was happy with his answers. change.rying to drive in the light of acknowledging mistakes and showing contrition for the accidents. it is one thing for a ceo to say be inanother thing for to reality. i was wondering if he was able to able to stand on reorganization because we see t

. >> they're an airbus, airline principally united has a lot of 737 exposure southwest has the largest max exposure also interesting when you think of the factors go into pricing a airline, fuel. delta, going so far to buy their own refinery this is forward looking in is that sense. >> we talk charts and not fundamentals, around boeing and some of these documents about the 737 max, i talked to former airline executive and he said don't be surprised to see delta start advertising the type of plane they fly. >> uh-huh. >> come with delta we have the airbus a 320. a-319 if people are weary of the 737 issue. >> i don't think that was the thing people would advertise in the past but it is now you think about the airlines that are going to benefit from that, they would be one. jetblue could be another. >> the newest fleet of airbuses. any way, really interesting trade on delta airlines. name we are watching thank you very much. >>> for everything options action, of course check out our website optionsaction.cnbc.com here is what's coming up next on "o-a". >>> coming up, the scientific method

george: i think is because boeing operates in a duopoly with airbus.irbus wanted to capture 100% of the business, they cannot. they do not have the capacity. if things get worse, it could be a different story, but where we are now is if you are an airline and you have an order with boeing, you do not want to get in the back of the line with airbus. you will probably not move your orders. it looks like the airplane we get certified and fly in fleets after they fix the problems. i think it is the nature of the industry. the new ceo takes over on monday. is there a way he can kitchen sink this progress -- this process and get all of the bad news out? happens monday morning when dave gets his feet under the desk? george: i think he will have a lot to do. repairing relations with the faa will be high on his list and changing the culture of boeing back to an engineering culture will be high on his list. that will be hard. i think they will want to take as many charges as possible as the year ends. they would like to put as much of these difficulties behind t

at the beginning of week two, i was allowed on board an airbus a380 tasked with bringing hundreds ofjorca to bring around 400 thomas cook customers back here to rainy manchester. this plane, the largest in a fleet of aircraft assembled by the civil aviation authority to bring tens of thousands of people home. this shows you just how different running a repatriation mission is to operating a commercial airline. the aircraft leave uk airports empty. but once in majorca, the authorities get as many holidaymakers as possible on board. before the company went bust, there were seven thomas cook flights scheduled to leave palma today for uk airports. with this giant aircraft, those seven flights become one into manchester. it's been absolutely fabulous. the holiday has been fabulous. the information was fabulous. we have to get to manchester — we live in brighton, so we've got to get a coach down. so what? people have lost theirjobs. it's all been fabulous. it was worrying, but then things have gone quite smooth. after a while, initially, yes, it was worrying. very lucky. very lucky, consid

which the us said the eu was unfairly subsidizing air plane maker airbus a larger dispute that one importersay could sink their business. we are frantically air freighting. wine from france a hundrdred percent. terror of will kill our business. the largest foreign market for french wines the us imports some seven hundred million euros worth every year not to mention spanish and german bottles that have also been hit by terrorists. european and american negotiators have given themselves until the end of the month to work out a deal to avoid another terrified one that could otherwise make drinking french wine on a portable luxuxury. the markets have welcomed that easing of trade tensions between the us and china anyway- wallstreet soaring to new highs once again so the s. and p. five hundred breaking above three thousand three hundred for the first time. meanwhile as the closing bell rang so google's parent company also that becoming just the fourth us company seats market value soar to a trillion dollars. earlier there was a bit more caution on the major european indices adjust the calculan f

opted forshares of airbus relative to boeing over the last nine months. remember, airbus is increasing a 320 production in alabama this year finally with regard to american airline, it's moving back its plan to fly the 737 max. it will now come back to the schedule june 4th. used to be april th. canceling 8,000 flights. that leaves southwest as the only u.s. carrier planning to fly the max in april don't be surprised if they move theirs back to june as well. >> phil, want to ask you about some newly released messages from boeing employees that look really bad again in the light of the lion air crash i just don't know when this flood from boeing is ever going to stop because it just seems to continue to get worse and make the company and its employees look more and more callous >> let's be clear here this is not a new release of a new document this is one of the documents released last week doesn't make it any better what's different here is it is unredacted we can see which airline they were talking about and they're talk iing about lion air they are sayi

but we have difficulties at the moment in relation to tariffs arising from airbus and boeing, and ofscussions around the digital tax agenda, very important from the united states' point of view, and we are trying to work out solutions. vonnie: the washington post had a story that in the days before iran abouted deviating from the jcpoa, that the trump administration said you need to do this or we will slap a 25% tariff. did that happen? phil: i don't think it happened. that wasn't raised with me during the course of any meetings i had with the administration. vonnie: how concerned are you? because as you say, the president has two what would be considered winds on trade in the last week alone. perhaps they'd ministration has more leverage now, phase one is done in the usmca locked in. phil: we respect the fact there has been good movement on trade in relation to the u.s. and their many partners around the world in recent days, and of course we want to now build on some aspects of the deal the u.s. has done with china, see if we can move in a common area and a lane of cooperation to d

you have boeing and you have airbus. you fly a lot of boeings.n fact, your longest flight is from atlanta to johannesburg, 17 hours? ed: that's right. david: and that's a boeing 777? ed: that's right. david: but you chose not to buy the 737 max, for reasons unrelated to what later became a problem. is that an advantage to you now, because you have the airbus 321 and that has given you more capacity than some of your competitors, and you take credit for that decision or was that luck? ed: i put that solely in the rather be lucky than smart category. we are big fans of boeing, and we're hoping to see the max fly quickly into the skies, but safety was never a part of the consideration set in making that decision. david: while you are in bankruptcy, u.s. air said, we want to take you over. was that considered a friendly offer at the time? ed: everybody assumed that was going to be a foregone conclusion. the people of the company stood and they said, that is not going to happen. ♪ david: you grew up in poughkeepsie? ed: poughkeepsie, new york. david:

deliveries tumbled to 380 jets last year, less than half of airbus's 863.he first since 2011 and only its 10th since 1984. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm oanh ha. this is bloomberg. matt: thank you very much. greenthe trend toward finance is growing as blackrock says -- it active funds will do best coders. passive funds will go greener. we will discuss with a veteran of 10 years. this is bloomberg. ♪ matt: welcome back to "bloomberg market: the european open." into the minutes session and looking at, for the most part, red arrows. you see the ftse gaining .1%, but other european indexes are down. yesterday, blackrock added its heft to the bsg ship saying it will shun polluters when it comes to active investors. the change affects those active a tinyirectly impacting percentage of its overall assets, but the chairman of a says it is part of a trend. he spoke to bloomberg in paris. >> it is a powerful long-term trend, which is demonstrated by the

how big is it out is it compared to the airbus a $350.00 for example it's actually larger than the airbus a $350.00 the a $350.00 is a competitor of the airplane and the boeing 777 x. is the largest twin engine are commercial passenger aircraft in the world right now ok why does boeing think that it will be such a success when airlines a ditching aircraft like the a $380.00 the double decker bus. you know it has a lot of improved features such as general electric engines actually it has foldable wing tips which allow it to get into tiger spaces such as gates that are at airports with a little bit of a confined space but you know that is a very good point a lot of these airlines are opting for smaller airplanes such as the airbus 832-8321 neo or the or the long range boeing 737 series of airplanes this is no doubt going to be a problem with production issues now with the boeing 737 max does this graph that the 777 x. have any of the the software features that the grounded the 737 max is safety going to be an issue here. safety will not be an issue in the research at the cation process i th

nejra: airbus has confirmed that it has reached an agreement with authorities.t has reached an agreement in principle. are made in the context of investigations into allegations of bribery and corruption. for legal reasons, airbus cannot make any comments about investigative authorities but it can confirm it has reached an agreement with those authorities. agreements are subject to approval by courts and the regulators. coming up, we will take a look at the day ahead. this is bloomberg. ♪ nejra: this is bloomberg "daybreak: europe." isus: charles-henry monchau our guest host this morning. charles-henry: listening into the -- listening into the frans van houten interview, your first take? think thenry: here, i bar is not too high for many companies. one take away is that it is too early to take the coronavirus to impact guidance. i don't think we will hear much on this from companies. europeanck to equities and companies, what i want to hear is also how they will be impacted trade deal phase one. thet importing a lot from u.s., probably at the extent -- at the ex

there is a threat if you don't solve the airbus subsidy problem. there are lots of tariffs in place, but what advice do you have for the u.k. and what is your prognosis for solving these trade issues and getting to an agreement? i would start -- i am not sure i got everything from the question. those were complex questions. i will start with the second one. i have no advice to give to mentionedse, but you with tariffs.utes i think that on both the french which is alsosue, a european discussion and we , butdiscussions in the eu both on this issue and on their relationship, what we say is that the best solution is to ane a settlement based on international framework. point, we have something which is being decided. now the interests of our industry which has been hit by settle the issue on the original issue, which is subsidies to aircraft. now we have an accumulation of tariffs on both sides. on the taxation, what we say -- >> [indiscernible] >> i cannot speak for others, but we have this process about , subsidizing airbus and the u.s. subsidizing a

estimates but also the company has lost its position as the world's largest play maker in paper or airbus boeing is about to present to model production over decent hmong these are will affect suppliers such as you mention spirit to resist i'm already announcing plans had to cut 3000 jobs let's not forget airlines either which have been forced to ground the 737 since march all these immense good also raise up to have a percentage point of the u.s. g.d.p. in the current quarter and the problem is that there is a still not real and in sight for all of these crisis. thank you mr harlow there with a view from wall street now to some of the other global business stories making news . and warren air busted throwing boeing as the world's leading plane maker the company the livered 863 aircraft in 2019 while boeing had made just 345 deliveries by november air bus would have sold even more planes but had some production issues with its a 321 which it launched in june a. german flag carrier and its subsidiaries including austrian airlines have canceled all flights to and from tehran for the next 10