it's all matters boeing. so it would include all programs. >> i think chairman mccain was driving the next question that i want to raise related to those pro precautions. boeing is one of our major defense contractors. they have many programs, some of which have troubles of their own. do you think recusing yourself from these boeing related issues could negatively impact the department's decision making process? >> i don't believe so. in my view, i believe i can provide general guidance in terms of program execution and techniques to drive better performance without getting into the specifics of a particular program. >> thank you for that. in terms of your financial divestiture, you are or will soon be fully divested from all boeing stock except for your retirement? >> if confirmed i will divest. >> i presume it's safe to say they have made you a very wealthy man over 30 years compared to most arkansas -- >> they've treated me well. >> your focus and loyalty is solely on the d.o.d. and the soldiers, sailors a

it's all matters boeing. so it would include all programs. >> i think chairman mccain was driving the next question that i want to raise related to those p precautions. bowing is one of our major defense contractors. they have more programs, some of which have troubles of their own. dhoou do you think recusing yourself from these boeing related issues could negatively impact the department's decision making process? >> i don't believe so. in my view, i believe i can provide general guidance in terms of program execution and techniques to drive better performance without getting into the specifics of a particular program. >> thank you for that. in terms of your financial divestiture, you are or will soon be fully divested from all boeing stock except for your retirement? >> if confirmed i will divest. >> i presume it's safe to say they have made you a very wealthy man over 30 years compared to most arkansas -- >> they've treated me well. >> your focus and loyalty is solely on the d.o.d. and the soldiers, sailo

the boe rate hike is at the highs level since february.ort of talking about the charts we need to show you around all of this. you can see this on this chart here. purity canthe boe see the possibility of a rate hike going up, the probability of a rate increase rising. given the fact that the government has come out and said a rate hike would not be appropriate at this point in time, who should we be listening to? we should listen to the head of rate strategies at ubs. that morning. what did you make of it? >> we were surprised and slightly puzzled, truth be told. i think there is a consistency in what he said, but the key here is what you read out, provided the data stays on track, provided that things unfold with regard to brexit in is the bank ofat england's central ascension. our concern is that that is not going to happen. it is already going off track. it was a slightly odd -- we thought it was on timing to be moving in that direction, but the market has to be paying attention when it is the chief economist of the bank of england and

boeing -- plenty afoot. let's talk to jens. boeing is wrapping up the competition with airbus.aying off? jens: well, what we saw recently, especially the bingo -- bigger single aisle planes, certainly airbus was profiting from that. so now boeing is bringing out their biggest narrow-body plane so far. wall street seems to like it. the stock among the bigger winners on wall street. overall the airplane market still seems to be strong and enough to support more than one big airplane maker. airbus also traded to the upside on the european markets monday. helena: in other news, donald trump sitting down with tech ceos. what can we expect from that meeting? jens: overall it is a bit more of a brainstorming at this point but still a lot is on the table. for once, the u.s. government would like to renew their pretty-aged computer systems. there is talk that some computers are still running with floppy disks. on the other side, technology companies have needs. they want to know what is going on with immigration, h1b visas, what that means for potential employees outside the u.s. that a

he is the vice president of boeing international and teasers as managing director of boeing defense india. he is based in new delhi and he is the most senior and country executive. he does business across three business units. before we get started on a discussion, a very quick rundown on the four companies represented on the panel and their business interests in relation to interest. ge has doubled its investment in india and delivered $3 million in economic value over the last three years. investors are mostly manufacturers. invested $350 million as part of expansion and 2006, have a factory, 200 by dollar factory that employs 13,000-15,000 people in india. boeing investment in india includes a new factory which plans for hornet fighter aircraft and it also has active helicopter production. it is doubling its resources from india. aeronautic and with parts built in india for around the world. another has a very large number of employees in the united states. half of the employees in the are working for them. over 150,000 people working here. rhetoric happens a lot, jobs are going to oth

a year ago, we had boe pumping liquidity into the system.t is trying to push back on that as consumer credit increases. a big decline in today down by 12%. the biggest decline since its ipo in october 2015. the auto-parts maker cutting its profitability goal for this year, citing price pressures and rising investments to keep up the industry's accelerating switch to electronic. a big decline today down by 12%. 90 minutes into the trading day, julie, how's it looking over their? re? julie: things are more mixed in the u.s. with the s&p in the dow moving higher. some of the energy stocks in the dow are moving up at the moment as well financials. that is helping mitigate some of the earlier declines. the gainers and decliners and the s&p were running back in ck andome up -- net an neck. we are seeing this happen in europe as well, a selloff in sovereign markets is sending yields higher. this is the biggest move that we have seen since march 1. it has been pretty unusual to see this kind of climb. it looks like it potentially has to do with comm

the china a big customer of boeing. what china does going with other emerging markets with state sponsored in case of china, state-sponsored companies end up building planes in the future may be a long term risk for boeing. but i like them in the short term. we own the stock. david: kevin, i understand, playing counter role of what scott was saying i understand long term why boeing is a big bet. we'll for the long term spend a lot more money what boeing manufacturers but has a short term reaction what happened to qatar doesn't make sense to me. what about you? >> we understand this company is of strategic importance to us especially because we don't want countries likes qatar getting weapons an munitions from russia and china as they start to build up their defense programs. it is important to note that. qatar, we have a strategic base there, well, that's true. >> it is very important because we're also selling arms and munitions to saudi arabia. so this government needs to take really hard look at how we're going to be

the boe has too much inflation. has enough inflation and is raising rates, so everyone is doing something different right now and there is no common thread. rishaad: is there really too much inflation? how much is down to prospects for more of it because of sterling? why even have this debate about raising rates? it will not make any difference. >> it is only fair to have the debate. rishaad: it is nonsense after nonsense. >> i do agree with you. advocatingi'm not raising rates. inflation down to 0% because of commodity prices. everybody made it into a deflationary problem. it,ral banks cut rates into but it was something that would never last too long. the undershooting overshoots are overdone. notralia, canada, but it is going up to a level where we need to see accelerating rate hikes. rishaad: anyway, thank you very much indeed. the chief economist at pine bridge investments with his thoughts on brexit and beyond. a lot more to come right here. this is bloomberg. ♪ this is "bloomberg markets: asia." msci, 20022a-

boeing's 661 ed to orders worth $44 billion.ing managed to deliver more though, and has gotten off to a stronger start this year. t's not all clear skies ahead for the market leaders. both boeing and airbus accuse ach other of receiving illegal subsidies and tax breaks in their home bases. in each seen costly delays production, demand is softening or their most lucrative product, wide bodied jets with two aisles. and still more firms are jumping into the game. china debutedear, built on jet entirely home turf. long range wide bodied jet. ingle aisle planes is more crowded with more established rivals from brazil and canada. all manufacturers are trying to efficient e fuel engines. oil prices have slumped since 2014 and the resulting lower fuel costs have airlines overall profits. with prices back on the rise, next generation engines are with less.o more russia also offered a platform innovations.t 3-d printers are used to manufacturer parts for irplanes engines, virtual reality programs play a role in testing. of grammer, the de

will it be boeing or will it be airbus? boeing has come out on top with many more orders for rival airbus.s the american manufacture secured 463 commitments to buy from customers compared to airbus 326. was the maxer aircraft. airbus played down their unusual defeat on home turf saying the market was just slower this year. >> is this a slower show than previous years? yes it is. are we conceding that boeing sold a few more airplanes than we did? yes. in terms of firm orders it's a wash. are those numbers lower than they were in previous years? yes they are. genie: the price of oil is recovering slightly from a recent slump. to itst crude slipped lowest levels since last november. under $45 a barrel. 20%prices have fallen by since the start of the year despite major oil producers extending a deal to cap production. u.s. shale producers have an stepping up their drilling pumping more oil into the market. things are picking up slightly on the oil market. genie: what kind of effect is that having on the stock rocket -- market?

vonnie: coming up, a new boeing jet is set to fly. we will hear from boeing ceo next.loomberg. ♪ nejra: live from london and new i'mnejra nation -- cehic. >> the new macs 10, boeing jet. receive $30t to billion worth of orders and commitments already. ,e sat down with boeing ceo .ejra dennis muilenburg >> the orders for commercial airlines remain steady. airlines700 commercial in backlog. that is seven years production. that long-term backlog give strength to the marketplace, and to our operations. >> and this will deliver more as well? >> yes. this week will be highlighting the max family. the of the 737 max nine flying. respect news about the max 10 as well later today. we are seeing good incremental widebody opportunities. >> let's talk about the max for a moment. the max nine here, we are waiting for the bell to be wrong on the arrival -- the bell to be ringing. the questions surrounding the max 10, we talked to a lot of your customers. they had wanted the 10 for a while. why has it taken so long for you to respond? could you have had this earlier? >> we think the

they already talk about the boe. meeting, not expected to move, but if we do, we will be back your with all the surprises. we shall see. see. shall kathleen hays with the watch on central banks. we continue our focus on the follow-up from the u.k. of election. how asian relations may change under a weekend theresa may government. the pound faces headwinds as some traitors are betting on a softer brexit. we get numerous outlook for sterling next. outlook for sterling next. this is bloomberg. ♪ is "daybreak asia." >> theresa may was left with a hung parliament. our next guest sees sterling strengthening by year's end due to a softer brexit. he joins us live from singapore. the u.k. needs is more political uncertainty, but let's assess the fallout we have. #9243, we have seen moves in the pound, 2% drop in sterling, that is more during the brexit vote. some thought a hung parliament with knockoff 7% on cable. i think the general view is that this uncertainty we are thesethrough will lead to softer brexit narrative gaini

it's a single aisle jet using customized parts from boeing and airbus.s priced to sell with discounts of up to 50% comparing to the boeing and airbus equivalent. they had orders for 570 airplanes mostly from chinese buyers. authorities are seeking agreements on airworthiness with u.s. and european regulators for flights outside china. boeing built first plane in 1916 and had a stranglehold on passenger jet sales until airbus began taking significant market share in the 80's and 90's. the pair split the business now including china were aircraft sales will total more than $1 trillion between now and 2035 according to boeing. and to the passengers, china will overtake the u.s. is the largest air travel market around 2024. getting into the major leagues with airbus and boeing may be a few decades away and critics needs tot comac privatizing go global and other industry watchers say the 919 should be a stepping stone for comac to build something better. they are well paced to take business from the established businesses at least from home. you can read abou

boeing has signaled its intent to offer a jet in almost four years. thehorse is set to go-ahead at the air show today. it's confident the plane can compete with rival airbus'bigger model. that is your bloomberg business flash. sincealmost a year britain voted to leave the european union. there is confusion about what the u.k. government wants from the divorce. the most obligated negotiation of all time starts at 10:00 a.m. u.k. time, 11:00 on the clock net with theresa may on the back foot. the talks are being held in brussels, that's where bloomberg joins us. what issues are on top of the agenda this morning? guest: the eu wants to focus on the separation issues, that's the main thing for them. the u.k.em for them is position is still in flux. after theresa may's election difficulty, the tories are still try to figure out what they will be doing. they go into these negotiations not knowing where the u.k. is positioning itself. theresa may's initial hard brexit position is going to soften, but how much? is the u.k. going to be bringing anything to the

boeing came out in the first race of the show. how are things looking today. lead forboeing in the the second day. after a couple of minutes, 131 orders, 51 confirmed orders, compared to 45. that is mirroring the trend that we saw monday. boeing has the lion's share of orders on monday as well. those figures will evolve. there are plenty more orders to come. but the interest appears to be planes,n a single aisle those that you normally see on short and medium haul routes. there has been a lot of interest in the plane that boeing revealed yesterday, the 737 max 10. ryanair, the irish airline placed an order for 10 of those planes. a fair amount of optimism here at the paris air show. boeing's latest assessment of how the market is performing, saying they expect second deliveries around 41,000 planes over the next 20 years, that is up 4% compared to their predictions last year. going into the show about sluggish orders, but there is not much sign of that here at the paris air show. big claims just like to fly over my head as we speak. we do have the world's bigg

at the boe,emerged half of the policy committee dissenting.its biggest division in six years, the monetary policy committee vote 5-3 to hold the key rate at .25%. an uncertainacing time, real earnings falling, consumer spending weakening, and fallout from last week's election. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. rishaad: let's get back to one of our stories. doj concluding its board meeting , not much expectation of any change in policy come instead a focus on governor kuroda's words and whether there is any indication of an exit from the stimulus program. what a we looking at particular? any idea how he extricate himself from this? that is right. no change in policy. all economist we surveyed agreed. cycle has ended, and the question is how you move exit.s a nagn outright bondits purchases, ¥60 trillion or a little bit less this year, below the ¥80 trillion target. governor kuroda explain this by explaining less upward pressure on bond yields allows the b

if boeing decides, than boeing will have to decide how they do certain markets and how big is the markete will have our own assessment and it makes sense for us. >> let's talk about the creating. you want new orders for the aero plan, what else can you squeeze out of the engine? in the engine industry, we are consistently, as we acquire new technology, we roll it into the products. we have done quite a lot of this already. if we see an opportunity to squeeze more technology, we do it every time it makes sense. what do you think you can get out of it, another 3%? >> i would not bet on these things but we are looking at these things. 1-3 and every time we built something like 145 of efficiency. we are contemplating what we can do a book -- over and above. i would not bet at this stage. engine show the 330 up? we are almost on slate. thatve done the test and pushed it slightly over the edge of three months. the engines are running through the tests now. we can now start the program. there are a lot of customers waiting for this. >> let's talk about airbus and boeing because they want to get

the boeing -- i'll be clear, the boeing contract is not going away at the end of fy '18. it continues. >> i thought you were looking to transition in house? >> there are portions of that effort that we're looking at a lead system integrator that's bringing the entire system together. we're looking at competing that portion of the effort. >> hypersonic, that's actually a new program. what are you going to be upgrading with new algorithms to counter potential threats? sm 6, which systems. >> what the capabilities are that those systems may have and if there's software we can put into that. to get back to your question about the lead system integrator. i believe we have -- i have to get the exact number for you but it's about $37 million starting in fy '18. >> to begin a transition -- >> to do the computation for that. >> to -- >> complete the lead system integrator part only. boeing will still be prominent in the effort, but -- in the ballistic missile program, but just the lead system integrator portion of that. >> that would be open to a competition. >> yes. >> okay, i di

on monday, boeing launched the latest version of its 737.r bus a three to one. so what are asia—pacific carriers purchasing? i asked that question earlier to flight global‘s financial editor. the boeing 737 max ten, the latest in the long line of 7375 ten, the latest in the long line of 737s launched yesterday and we have seen that asian carriers are pleased a large role in that. line a announced major commitment of 50 aircraft will stop we have also seen many asian leasing companies, cdp asian leasing and finance, owned by cdb leasing, has committed to this. they obviously see that there is great potential in the asian market for this longer 737jet. great potential in the asian market for this longer 737 jet. so why are we seeing more leasing of aircraft rather than direct purchase of these planes? at the moment it is a good environment for leasing companies to pick up the aircraft. 0ne environment for leasing companies to pick up the aircraft. one of the reasons that airlines to deal with leasing companies is that it takes away a sense of

both boeing and airbus claimed victory over that decision. shares of boeing were basically unchanged at $190.03. >>> the federal trade commission staff is advising the agency to prepare a lawsuit to block walgreen's nearly $10 billion deal to buy rite aid. that's according to a report by the trade publication capital forum. walgreen's initially bid for its smaller drugstore rival back in 2015. shares of walgreen's dropped to $80.99. shares of rite aid plunged 15% to $3. >>> sirius xm will make a $480 million investment in the music streaming company pandora. the satellite radio company cited pandora's large user base and personallyized music experience as tremendous assets. shares of sirius xm dropped 20 cents to $5.20. pandora rose 10 cents to $8.52. >>> the fda has requested endo pharma pull its opioid painkiller off the market. this is the first time the agency has asked to remove a currently marketed opioid drug due to public health consequences of abuse. shares of endo pharma dropped more than 16% to $11.49. >>> time now for our market m

ceoill speak to the boeing at the air show at 7:30, u.k. time.is your bloomberg business flash. very much. you the republic on the move party is on track to get 350 seats in the national assembly, according to the early results, meaning the biggest majority in almost 15 years off of the lowest turnout ever in a legislative election. -- wewhere standing by are standing by. >> good morning. the support of the macron party is -- good morning. this is a good majority. asis not as high or big expected. are you disappointed? >> not at all. you have to remember that, a year ago, we were a budding party doing our first rally with 1000 people. the turnout was not as they do as expected, but the results is very good for us. at 56.6%,mentioned, record,est record -- on -- 56 point 6%, the lowest on record, is that bad thedemocracy -- 56.6%, lowest on record, is that bad for democracy? >> i don't think it is bad for democracy. they did not have time in the months to construct a real project and the electorate did not feel like turning out to vote for them bec

what -- parsing what the central banks had to say, the boe there. we are taking a look at the shanghai and hong kong markets just kicking over to the open. shery: a pretty good start for the markets in china. the hang seng index gaining .7%, and you mentioned tech shares leading the gains, up 1.4%. the only sector losing ground is energy, although oil prices are gaining for a fifth consecutive session. regulators will start looking into that sell off of some small s we saw earlier in the week, 17 companies losing 40% of their stock price in the last few hours. gainingghai composite .2%. in the green, continuing that momentum we are seeing across asian markets. we are seeing materials lead gains in asia. take a look at the chinese 10 year. this is not updated. a survey of fixed income traders, they all expect the bond market in china to end its losing streak, the longest in six years, and may see gains in the latter half of this year by about the third quarter of this year, that sovereign debt rise and weekly see yields falling to lower levels than r

it has been expected by the boe.e, both above the 2% target and presumably headed for maybe 2.7% on the latest reading later this week and as high as 3%. spending,tioned, u.k. the latest data showed a fall in may for the first time in four years, why? may be because the consumer is getting squeezed. 9287, inflation has been pricing, the white line, but the turquoise line is average hourly earnings for u.k. households, and they have flattened out. maybe that is why people are not spending, another worry hanging over the u.k. economy. , we could maybe expect that to be worse now that this u.k. election result is out and will have these ripple effects for investors, consumers, and more. week forviously a big central banks, the fed, boj, boe, bank of russia. what is going on? >> the fed is expected to hike its rate on june 14, janet yellen will also answer questions about what this means for the balance sheet reduction. is the fed ready to elaborate more on that? medman sachs talking to about how we should be on the look

betty: airbus says the boeing competes with its own.irbus has built a wide sales lead in the three years since its construction, and it could fly further and more cheaply for passengers. airbus announced orders worth more than $12 billion. the ceo says he does not see the boeing as a threat. >> i do not think so. we have 80% marketshare right now. the 737i think is competing with the 737 -- with a different 737s. anchor: qatar airways may seek legal recourse. the carrier says it is assessing the longer flight times it faces because it is barred from saudi , your unique, egyptian uae, and-- from saudi, egyptian airspace. we have a lot of new destinations we are launching an we will expedite those launchers and qatar airways will continue its growth. we do not get intimidated. we will find new markets. and a report into last year's fatal crash of a self driving tesla model. they fail to say what caused it. the car had hit a truck in florida, killing me driver -- killing the driver. it was in a zone limited to 65 miles per hour. regulators

for boeing and airbus, the world's two biggest passenger jet makers, it comes at a turning point. jet orders is starting to dry up, as competition from new players in start to get heated. martin has this report. reporter: analysts say the aircraft sector boom may well be over. but the paris air show this week, industry spokespeople the continued increase in air traffic. and the big players, including are showcasing their new models. >> the max 10 will be the largest and most efficient member of the max family, to 230 people. simply put, the max 10 will be most efficient, single-aisle airplane in the skies. reporter: boeing has announced more than 100 orders for this archrival, airbus, announced a similar number of in its air 320es series. figures mask what may be testing times ahead for the world's two biggest plane makers. low oil prices means airlines are under less pressure to buy newer, more efficient planes. and both airbus and boeing are a hugerying to process backlog of hundreds of orders, dating back years. long-term demand especially from asia is set to high, both russia'

do you understand some of the reasoning behind the boe?well, i think they're making a case, but actually if you're really worried about the uncertainty of brexit, i would think the thing to do is build up a little ammunition now. take advantage of the situation, which is a robust economy, begin raising interest rates, at least remove the extra stimulus that was put in after the referendum on the theory or on the hypothesis that the economy was going into a downward spiral which, of course, didn't happen. so what you really need to do is get interest rates to a level where you could, indeed, drop them if the situation on brexit turns out worse than expected. >> there have been some rumors that after this election tomorrow we'll see a cabinet shuffle. of course, the conservatives say power and phillip hammond said that he might be losing. do you think that would be a good idea? >> depends on who would take his place. >> yeah. >> i think -- i think he's done a reasonable job. he's a very cautious person, but he does seem to have an understand

boeing to me, we've talked about this for a long time we said own boeing into the paris air show, whichrday. take a look at the number of boeing got from six or seven different airlines it's stagging. people say it's expensive on valuation. it continues to grow into valuation. i think despite the move boeing has had, you stay long there the one that scares me though is triple m the move has been -- for a huge company at 23 times forward earn, not saying short it, but if you're in it, i would take some profits >> pete, you pick. trade what, fade what. >> i actually disagree with guy on that one. it's a minnesota company and second of all, the fact they raised the 2017 earnings just in the last quarter, looked very, very impressive. these guys all are show growth, whether it's united technology or 3m, there is demand, growth in all of their high areas for revenue. so i think i like these names as much as the fang names >> still ahead, fedex out with earnings tonight, the stock hitting a new high three headlines moving the stock, plus do you own an emerging market index? tt'thca, enour por

that's one reason why for commercial airplane makers like boeing and airbus, look at shares of boeing announcing 737 max-10. here's the ceo talking about demand on the commercial side right now. >> we are continuing to see strong demand. updated the current market outlook. next 20 years, need for new airplanes, seeing lift there >> percentage wise, what kind of change >> about 5, 6% increase. also seeing passenger traffic growth, year to date, 8% growth, more than historical average of 5 to 6%. overall, demand looks solid. >> reporter: on the defense side, look at shares of lockheed martin it is negotiating new sale of f-35 as it continues to tout that fighter jet that will be flying later this afternoon inparis. had a chance to talk with the ceo about what they're seeing overall in terms of interest from potential clients on the defense side of the business >> we are absolutely busier. we looked at what our meetings are, they're up by large significant magnitude. we expect to have great interactions all day and throughout the week. >> we are just getting started in paris in the next

who hikes first, the ecb or the boe? >> ecb. >> ecb. >> ecb. jonathan: there we go. final question.t longer, may or yellen? >> yellen. >> yellen. >> yellen. too easy. jonathan: i just love how much trouble you will get in. you have been watching "bloomberg real yield." ♪ so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's hoyou outmaneuver. tthat's why at comcast,t to be connected 24/7. we're always working to make our services more reliable. with technology that can update itself. and advanced fiber network infrastructure. new, more reliable equipment for your home. and a new culture built around customer service. it all adds up to our most reliable network ever. one that keeps you connected to what matters most.

boeing certainly believes all of this is certainly going to happen. i believe boeing. if that is true, what will be good for boeing will also be very good for america and good pour -- for work. charles: trish: go ahead. >> this is tough conversation because the markets benefit from low interest rate environment and earnings are worth more but it is not translating to the consumer and not translating to the real economy. 70% of our economy is services. it is struggling right now. the s&p 500 is doing so well. they want the status quo. they could care less if tax cuts happen. trish brought it up, it is bipartisan issue. obama had in his budget business taxes going down. that will help small businesses. same with hillary clinton. it was part of her plan. we need to get it done. doesn't seem like it's a priority to get done this year. they're focusing on everythings including health care which they should do tax cuts. trish: turn the conversation a little bit. janet yellen will be speaking momentarily. i always point out, look i'm a reporter. i like i like the fact there i

for the first time since 2012, the american boeing has come out .n top, many more orders they also see the debut of smaller players. the battle of the industry giants was nevertheless center stage. aviation companies, the american aerospace has outpaced the european rival for the first time since 2012. it may be the biggest commercial aircraft in the world. 737, a larger update. >> competition is healthy. we are happy to compete against airbus. the airline companies pick us. we are extending the family with this version and we are very optimistic. >> that model helped put boeing over the top. a total of 571 net new orders and commitment valued at nearly $75 billion. that is compared to the airbus orders. >> are we concerned they have more airplanes than we did? yes. they've got the rest. >> they have then expected to produce sluggish demands. to build a 10%ng stake in american airlines. it is unsolicited. cut ties in recent months. delta and united expressed concern about qatar airways. and therefore, an unfair advantage. a fairly flat session for the european indices. they closed just

who hikes first, the ecb or the boe? >> ecb. >> ecb. >> ecb. jonathan: there we go. final question.t longer, may or yellen? >> yellen. >> yellen. >> yellen. too easy. jonathan: i just love how much trouble you will get in. you have been watching "bloomberg real yield." ♪ . vonnie: it is 12:30 in new york. i am finding quinn. welcome to "bloomberg markets." n. i am vonnie quin ♪ vonnie: from bloomberg world headquarters in new york, the top stories and around the world we are following. u.k. prime minister theresa may firm on brexit as she battles to stay in office after a failed election gamble. the english pound sliding after conservative party losses area plunging into uncertainty days before the brexit negotiations are due to start. and elsewhere, a look at how media deals are impacting the public relations. may vowedle theresa lead the u.k. out of the european union. it comes amid calls

on the one hand eight dovish boe, on the other hand a hawkish fed. sterling below is more than a week in today's session. if we look at what else i have here, i want to show you european stocks. the charts are not coming up, but we are watching the stoxx 600 trade lower. posting losses after two days of gains. the dax hit a record coming off of those highs. we are seeing the losses on the stoxx 600 on the oil and gas stocks. julie: in the u.s., we are seeing decline in sales, but they are smaller than they were. oil helping drag down the major averages. also interesting trading in the bond market. the perception is that the red is hawkish. how hawkish? in, in increase december. we are thinking of buying in treasuries with yields going back down after bouncing yesterday. now 2.17%. the yield curve is once again flattening, or narrowing. we are now seeing the narrowest since the recession began in 2007. on the one hand, yes, the fed is expected by many traders to raise rates perhaps in december, but at the same time inflation looks to be contained. tha

last year, airbus came out on top. 2017,halfway through boeing is in the lead. both companies are unveiling new versions of their popular planes. they will be announcing more orders as the week goes on. they are far from the only players in the field. chineseveils the first built passenger jet. that came out earlier this year. beijing and moscow have a new partnership and they are trying to break into the market. mitsubishi is debuting a new model here. all of those manufacturers are battling against a declining market. the air show is a platform for new novation. we've got everything rum fuel-efficient engines to the most luxurious cabin interiors. they unveiled a business-class suite earlier on, hoping that high luxury will attract customers despite the political issues facing the home base at the moment. we have drones being exhibited here. they can identify risks and increase security. we have a lab connecting startups to airlines, trying to boost creativity and get them into the skies. we can't forget the defense sector. they are responsible for the more sp

boe, i wouldhe hold. i would not necessarily accelerate the amount of qe. it hold for at least a month or two months before considering any action. there will likely be another election later this year. it really needs to be seen how things are in august or september before boj -- boe takes any dramatic action. you have inflation around 2%. you have employment at good numbers. i think the fed has to act, regardless of what's happening in politics. this infrastructure program looks like it's going to proceed. there's quite a lot of noise around it. if you have fiscal activity going on with the interest rate environment and the stock the fed has on its balance sheet, then you have an environment where you could actually type -- tighten up slightly on interest rates. rishaad: looking at the bank of england, politics aside, we have a situation where inflation is theaps elevated due to brexit vote and what happened on the currency market. also, the data is not looking that hot either, is it? the u.k. economy growing at less than 1% this year. we don't think it l

this is the boeing factory 30 minutes outside of seattle in everette where almost every boeing airplanemade. and it's open to the public. >> why almost 60 years ago did you allow the public to see what you were doing here? >> well, they started coming on their own. where we're standing right now was actually woods and we needed to build our planes next to the runway. there's talks and rumors the biggest plane of the world was being built inside and people got curious. maybe we should guide these people around. >> today boeing produces one airplane a day and you can see 50 of them being built in every stage at one time. before they get sent to airlines all over the world. >> right now if you wanted a 787 i couldn't get it to you until the year 2021. over 1,000 planes are on backlog. >> these planes can cost more than $300 million. but the most expensive is yet to be built here. >> when we see the president happened in air force one, that plane came out of here. >> and i know that you guys are in the process of building a new air force one. is that happening here? >> yes. we're not curren

boeing has secured twice as much as rival airbus.oeing won orders and expressions of interest for 420 planes, worth as much as $58 billion. airbus posted a tally of 229 airlines, valued at $25 billion. it marks the u.s. plane maker' biggest victory. sthat is the bloomberg business flash. francine. francine: thank you so much. let us focus on the middle east politics. mohammad bin salman's appointment as crown prince mean energy markets need to brace for an even more assertive policy from saudi arabia and could that prove a threat to stability? a man says the changes in saudi are positive. >> i am so happy of the changes, because, since king salman came into the position, there is a lot of of positive -- a lot of positive changes. stability for the saudi people and the neighboring countries. fighting terrorism all over the world. francine: still with us, pau and b valentin. i don't know if this is more of a regional story or whether this will usually impact what saudi arabia will go through in implementing his vision for 2030. >> i gu

starting off with boeing, boeing is such a -- said to be closing in on 5 billion -- $5 billion sets ofare told it is in talks with about 20 max, 10 planes. indonesia's line is looking at 22 as many as fit the. it was announced at the paris air show where boeing is announced to release more plans. asia airline says it is nearing a yield for the wide-body plane. they are still haggling over a price. of carrier wants details other parts including delivery times, they say there is no chance in order will be placed in paris this week. there was a booking slump that followed to fatal disasters in 2014. is theillionaire prince latest to bet on the by base company. he joined others, including the $500 million funding run. exclusively, the founder and ceo. great to have you back. in the months since we last met, a bit of the change in key investors. how will that have a bearing and how you move the company forward? new backers and maybe new ideas? ,> thank you for having me back it's a pleasure to be here. two new backers. both of these investors bring unique regional and global perspectives. i

nejra: the story here is the hawkish comments from the boe.gher, we saw the sterling dropped to a two-month low earlier in the session. it has rebounded to go for its highest gain against the dollar in a week. is ahis chart is showing great bloomberg greed indicator. sayinghis from keynote there might not be much conviction behind the decline. you see that get in the end on the red. you can see where we've got the greens followed by the reds. the sterling is in no way a one-way bet. with so much uncertainty ahead, particularly around brexit. you can see the chart on the bloomberg at #btv 286. vonnie: i am deeply conflicted today because we have two fantastic candidates stressing the big stories of the day. the british pound and oil, with saudi in the news. i may just have to a time. what do you think, control room? ok. the time was accepted. a tie between taylor riggs and nejra cehic. nejra: we saw the european markets close just about half an hour ago. let's see where they ended the day on the stoxx 600. lower biome as 2/10 of 1%. losses pret

vonnie: what about the boe? it's an odd place at the moment.ht be a third election later this year. michael: people there saying god for bid. if you look at what's going on in england, the bank of england faces a dilemma. because of the brexit vote, the sterling has fallen and they have been importing inflation. growth has been hanging in. that would argue for a rate increase sooner rather than later, but because sterling has fallen again and it is all this and stability about politics, the boe is not sure which way things are going to go. are we going to see growth slow and efficient continue to rise? -- inflation continue to rise? people have been talking about pushing back on when they might. what you will see this week is nothing. they will punt because there's too much uncertainty. vonnie: that's the problem with punting. you can only punt so long until it's too late. how might they signal a change in some way? is it a single member voting to abstain? michael: when we get the minutes in a week or so, you would see a broader group of people

boeing a bigger point contributor, 225 points comes from boeing. then 207 from mocdonald's. those three stocks responsible for half the overall point gains so far this year. after the biggest drags, you've got ibm, big blue, taking 93 points off the overall index's value year to date so far. chevron, about 98 points. and the biggest drag so far has been on the financial side of things, perhaps no surprise there, goldman sachs dragging about 167 points off, as financials have lagged so far in trading this year. as we talk about the dow, fairly narrow range of stocks powering the gains there, much like the s&p 500 where the top five stocks in there, like apple, like alphabet, like microsoft, like amazon and facebook, are powering many of the gains there. these few stocks are the ones driving the gains for the dow so far this year. the question is whether that becomes a detriment in the future. we would like to see larger participation for that bull market. i'm dominic chu for "nightly business report." >>> as stocks have rallied, so has the price of gold, often viewed as a saf

. >>> boeing is cutting 200 jobs at a planlt in south carolina. the same plant where president tr ago t. compa says the layoffs are part of a plan announceded back in december and they come as competition intensifies with rival airbus. boeing has been reducing staff of the year primarily through buyoutsattrition. >>> hurricane season brings attention to flood insurance. for decades, the program has been run by the government. but that's starting to change. morgan brennan explains. >> private insurers are taking the plunge into the turbulent waters of flood insurance. for the first time in five decades, the companies are underwriting coverage for homes and businesses. mark a potential shift if for a marketplace run by the government since 1968. >> it's a very strong business opportunity. te changed. the industry is much better at measures risk on flood insurance than they were years ago and as a pursuing that opportunity. >> it could growgrow. >> also more favorable regulations. that started in 2012 as a bigger act. the last big attempt to reform t

boeing is doubling its sources from india. and this person is roughly $500 million in india. also on the other hand has a very large number of employees in the united state. happy employees in the united stated of over 150,000 people employed here. those who think this relationship happens a lot, no, india is actually creating jobs in the united states as well. planning to open new delivery centers in the united states. its biggest geography by revenue in atlanta, dallas and new jersey and has invested $500 million acquiring a u.s.-based last year. of course starting a group of companies at the number of american companies including boeing, starbucks and cooper and in cooper and then play something like 22,000 people in north america. they are working currently for starbucks to expand increased investment with india in the near future. you can have in mumbai and calcutta as well. a billion dollars in the united states in 2008 and over $100 billion. enough with the introductions. let's get to the nitty-gritty. let's start with you. my first question to you in today's innovatio

. >>> coming up meet the press end game and post game brought to you by boeing.working to build something better. isaac hou has mastered gravity defying moves to amaze his audience. great show. here you go. now he's added a new routine. making depositing a check seem so effortless. easy to use chase technology, for whatever you're trying to master. isaac, are you ready? yeah. chase. so you can. he's happy.t's with him? your family's finally eating vegetables thanks to our birds eye voila skillet meals. and they only take 15 minutes to make. ahh! birds eye voila so veggie good >>> meet the press end game is brought to you by boeing. always working to build something better. >> back now with end game. whip lash from president trump on the russia story. now admitting. since the obama administration was told way before the 2016 election that the -- setting that aside, that expose ain the washington post and that quote i think we choked. >> that is huge. i think you look at it. on one hand you can sort of understand the position that the obama administration president

. >> boeing raises its long-term dlooifry forecast. that's where we begin tonight's market focus. the aircraft maker said it expects to see heightened demand from the aerospace industry over the next 20 years and plans to deliver about 41,000 planes tr. boeing shares fell fraction alley today to $198.33. >>> homebuilder le nar is seeing new increases in sales and said quarterly orders hit a ten-year high. earnings took a hit from charges related to a recent acquisition, but overall, profit and sales were better than expected and said its medication for treating vision loss was just as -- they said the trial showed patients didn't need to receive as many injections as they would with the other drug, but novartis doesn't plan to file for regulatory approval until next year. as a result, regeneron shares rose to 495.33 while novartis was up a fraction to 81.60. >>> red hat raised its earnings and sales outlook for the year. after reporting earnings and e ahead of estimates. the company cited robust global demand and increased commitment from its largest mecustomers. shares took off i

this summer boeing, the world's biggest plane manufacturer, will test autonomous flying . the technology and cockpit simulators. oh and will look at whether artificial intelligence can make sound flight decisions just like a pilot . the reason for this is a response airlines around the world needing more pilots. >>> airbus is showing off his next generation of playing cabins . the highlights include increased cabin with by a few inches along with new overhead bins that can hold eight bags instead of the usual five. window is a little bit larger than the current designs . the cabin features mood lighting that is customizable. airbus expects to roll out these flames with new interiors beginning in 2020. >> it looks like a fancy nightclub. >>> amazon hopes to revolutionize the clothing industry by letting you try the latest styles with no upfront charge. that's the idea behind amazon's new prime wardrobe. prime members can select which clothing, shoes and assessments they want, try them on at home and then they have seven days to decide whether or not they want to keep them.