plus, is it terminalfor alitalia?taly's flag carrier battles to stay in the sky as its rescuer pulls the plug. welcome to world business report. i'm aaron heslehurst. also coming up, raking it in, but are they worth it? top bosses face their shareholders amid growing concern over excessive boardroom pay. we start with president trump, because once again he's taken the business world by surprise. the white house has confirmed it has told the leaders of canada and mexico they won't be scrapping the north american free trade agreement. but instead they will seek to renegotiate the terms of it. that has sent the canadian dollar and mexican peso soaring. president trump has repeatedly vowed to pull out from the 23—year—old trade pact with the two neighbouring countries, calling it ‘the worst trade deal in history'. he already used an executive order onjan 23 to pull out of the huge tra ns—pacific partnership trade deal. financial markets were worried he was about to do the same with nafta, with huge implications for indust

here's a look at alitalia's struggles. alitalia is the sick man of the skies. of millions of dollars a year. in 2015, desperate for cash, it sold 49% of its shares to etihad airways abu dhabi. etihad offered to inject $2.2 billion to fund alitalia's recovery but a key condition was poor alitalia to cut its costs. the airline plan was lay off 1700 staff. cut wages by 8%. and cut its fleet size. but union members voted to reject these measures, so etihad has taken its money off the table. now alitalia is planning to appoint an administrator who would decide whether the airline can be saved or whether the airline can be saved or whether it should be wound up. the italian government says it will give alitalia a bridging loan to continue to operate for the next few months. problems at the italian carrier alitalia. let's have a quick look at the asian stock markets, currently mixed, the nikkei down by 66 points but the all ordinary is flat to hire at this hour. this is after donald trump's dramatic tax cut proposal failed to lift us stocks overnight. 0n failed to lif

alitalia is set to start bankruptcy proceedings.evelopment pushes the carrier toward its second administration in a decade. manus: the decision to appoint an administrator is the first step in the legal reorganization process. in tracy alloway. good to see you. we have room boards coming in that government is thinking about a lifeline, a temporary loan. what has been the reaction? >> i'm trying to think of a suitable adjective to describe tihad.otion from e they came in three years ago and began building its big state in alitalia, injecting a lot of money into the company. a lot of that was used to modernize and get the flight attendants new uniforms. there was a lot of fanfare that had injury into the carrier. fast forward a few years. the decision by the employees union means that all parties move out, and it is important to you note the words being used by the transport union. we had the official who made the the -- sont saying certainly emotion is running high right now. not: saying italy will oppose any bid from of concept for

alitalia says it is heading for bankruptcy again.ry coming up from our european headquarters. this is bloomberg. ♪ yousef: let's get to through some key trades. warm up for the opening in the middle east. reports they have reported numbers. no income, first quarter came in at 600a.2 million saudi riau. first-quarter revenue hitting 1.7 6 billion riel's, under expectations. saying, while volumes are up, prices have also risen. it is a stock that has outperformed so far this year. some of the at other companies that could be qataring today, including . the mark in dubai, interesting company. i was looking off the run off to strengthen, it could be indicating the stock is oversold. the companyst say has changed their price targets over the past month. on the watch for turkey because the central bank will make a decision on interest rates. the lira might have rallied, but analyst by bloomberg do not expect the monetary committee to make any changes. they are expected to hold ranks. they might do a move in their link desk late liquidity w

plus — is it terminalfor alitalia? flag carrier battles to stay in the sky as its rescuer pulls the plug. hello and welcome to the program. can the trump administration persuade north korea to abandon its nuclear and ballistic missile programmes? well, that's the aim of its current strategy according to a briefing that the white house gave to all 100 us senators: using economic sanctions and diplomatic pressure to force pyongyang to change course. but there are many who doubt it'll work. more from our washington correspondent laura bicker. the us is piling on the pressure. this is military exercise just miles north of the korean border. a message that the us is ready. this is how the head of the us pacific command put it to the house in washington. all options are on the table. we want to bring kim jong—un to his senses, not to his knees. later, all 100 senators were taken to a briefing at the white house with the commander in chief. a highly unusual move to show politicians from both sides of the aisle just how seriou

alitalia has always been a basket case.state and operations and pulling them away into the private world, it doesn't work that easily. virtually any other airline would have been better. etihad will be saying, i am 0fcom and find somewhere else to fly. president trump's tax plan has disappointed investors even though it's been heralded as the biggest tax change in history. it was 250 words! remember when ronald reagan came out with his plan, incredible detail. there is no plan. it'sjust a concept, i thought. detail. there is no plan. it'sjust a concept, ithought. it's detail. there is no plan. it'sjust a concept, i thought. it's better to travel than to arrive, the markets had expected a good tax boost and they will no say, where, how, will that get through congress? because people will ask, was going to pay for this. the republicans don't do borrowing. justin, we will see related to talk about more stories in the papers including united airlines and their latest offer for overbooked passengers. that is still to come. we wi

the vote against the deal leaves alitalia facing possible bankruptcy and liquidation.areholders will meet on thursday to discuss airline's future. over in the united states, stocks are trading higher this session. the nasdaq reaching the 6000 mark for the first time. shares in facebook, amazon and net excerpt rallying this session. the index currently up over .7 percent at this hour. the dow jones also with gains of over 1%. here in europe, the effects of the macron rally continue this tuesday. all the main indices ending the session in the green. shares and christians you're afteruesday with over 11% the french billionaire said he would combine christians you're into his luxury goods empire. the deal valued at 12 going euros will simplify the business interests of lvmh. the family will offer to buy the 25.9% which it doesn't already own. the brands currently include louis vuitton and others. automaker peugeot is reportedly under investigation by french authorities on suspicion of cheating decently missions test. the consumer watchdog agency sent the case to prosecutor

what is their interest in alitalia, that's something that could be market relevant as well.u say, they have 49% , this is what we're talking about yesterday. showing an informal interest in buying some of alitalia's assets in the bankruptcy proceedings. anna: we heard from one tell you official that they would not stand in the way of any interest from lufthansa. the adjusted ebitda ahead of the estimate of 3.67. net sales also ahead of estimates and the raising their outlook for 2017. quite a lot beating estimates. and getting guidance from continuous operations on core eps. the big driver is all around m&a. management is working to get tied up this $66 billion takeover of the eye were called for giant that is monsanto. ,he focus on the drug sector will be speaking exclusively to the ceo. he will join the european market open team at 8:00 u.k. time. correction, up on the previous quarter last year. just a quick correction on the details there. the technological version of anna and i, let's take a look at the cover edition today. than 200 50 words, they've reduced it to three

and alitalia workers have rejected a restructuring deal from the company's management and unions to savereports in italian media. more than half of the employees taking part in the vote rejected the deal, which involves 1,700 job losses and a 8% salary cut. the government says that there will be no alternative. so we could have more problems with the carrier and possibly more strikes. it might have been a strike at a shopping mall in dubai when the lights went out yesterday, did someone lights went out yesterday, did someone forget to pay the bill? 0ne of the largest shopping centres in the world was plunged into darkness two hours. shoppers were forced to use the screens of their smartphones! to navigate their way at! i reckon they went on shopping. that's the hard—core shoppers. when you are in dubai you want to spend. this chinese liquor company which makes the popular grain spirit baijiu is toasting some impressive results. leisha chi is in singapore. good to see you. have you tasted this, it's a grain spirit. i know you, iam this, it's a grain spirit. i know you, i am sure you have

plus — is it terminalfor alitalia?

the airline can do when you have labor unions and very strong existing culture and a company like alitaliaing,h have we are marking the first hundred days of the trump presidency. trump does seem to have had a direct impact on gulf aviation in particular. how has that played out? >> i believe the main reason why trump is considered a president that is for the u.s. aviation market is protectionism. he will be used by the u.s. carriers in the ongoing debate on u.s. open skies. tracy: there was speculation the laptop the van in particular for some flights was essentially a backdoor measure aimed at attacking the gulf hub model. do you share that view? >> i do not believe that is the case. many countries like the u.k. have followed. i don't think the main reason has been the u.s. open skies. it is a security issue first and foremost. setting aside the laptop fan, you did have the travel restrictions. that has directly affected the gulf carriers. etihad has cut back on flights to the u.s.. >> correct. the problem might now is when it comes to both carriers come you do not have a common policy.

an italian newspaper reports that al he dodd airplanes once to sell its remaining stake in alitalia tos the leader of the national front in order to campaign for president as a "free candidate." she says the move would allow her to represent all french people. that comes as him against emmanuel macron intensifies his, some accusing him of complacency. joining us now is bloomberg's international editor. he oversaw all of our paris coverage and was with us on air well into the evening sunday night. we also have shahab jalinoos, head of fx at credit suisse. do a now say it is a given that macron will -- do we need now say it is a given that macron will win with 60%? >> that is one of the big unknowns. for macron, he would want to win by a much bigger margin. 60-40 against le pen would be ok, but if you wants to unite the entire country behind him and get an agenda through parliament, it will be important for him to win by a bigger margin. francine: how much does a manual macron need to campaign to get support for the june 11 in june 18 vote? he needs to be able to govern. john: that is ri

i was reading this morning in the paper, the latest tale of nonsense involving alitalia.arallel. in the banking industry, we have yet to this day have a truly .an-european leading bank because of the restrictive practices within european countries. until you get that, you cannot have them competing with the big u.s. guys. banking.lous on eu jeff curry of goldman sachs on oil later today. stay with us, jim o'neill in london, francine lacqua in zÜrich, this is bloomberg. ♪ ♪ francine: this is bloomberg surveillance. donald trump has proposed a 10% tax on more than 2.6 trillion dollars in earnings that american companies have stockpiled offshore. that is according to a white house official familiar with the tax plan. they say the administration will call for cutting the top income 39.6%.15%, down from let's get more from stephanie talk tod jim o'neill, me about the tax plan, 10%. and 15%. will the president get it through or see opposition from paul ryan? >> he will face opposition, how will he pay for it is the chief question. a 10% tax on repeat. it profits from overseas c

meanwhile, an italian newspaper reports that the state in alitalia -- stake will be sold.d dividend growth the last two years in the midst of the worst oil price slump in a generation. exxon will announce a four cent increase tomorrow. david: eli lilly announced first-quarter earnings over an hour ago and reported revenue a bit better than expected. the midpoint of the guidance for the year was just a little bit .ess than analysts predicted joining us is the president and ceo, dave ricks, who took over earlier this year is it about to add -- and is about to add chairman to the war to his title. thank you for being with us. give us your take on this first quarter. estimates onu beat earnings per share and revenue. how do you earn -- view it? dave: it was a strong operating quarter. we have launched seven products over the last couple of years and we are writing those two success -- riding those two cess in q1.o suc controlled expenses at 3%. the team is working hard and we have good momentum with innovation strategy behind the new product. david: before we get into specific