and slow story of those people making a difference shaping their nation election and their continental airlines for cars on the move stories about motivational change makers taking their destinies into their own hands w.'s new multimedia series. d w dot com africa on the move. a trade war escalates china hits back it trumps tariffs beijing boosts julies on u.s. food imports that will hit merican farm states many of which voted for the. change in course successful economic reform a portugal set sail for a brighter future moving from austerity to prosperity. and it's a long time till christmas but modern day life is taking its toll on the age old trade of frankincense how would the three wise men have solved this one. let's do business it's a face off between the globe's top two economies and it's set to get ugly is financial market tension this hour over a trade war between the united states and china beijing's tit for tat tariffs on u.s. imports kick in today the government says the move is to safeguard china's interests and balance losses caused by new american targets. these american avocados

yvonne: united continental is pushing had with the aggressive fares and offer more seats. the airlinefor each seat will rise from 1% to 3%, it will be the third straight increase. united is betting they can ramp up seating capacity without starting a airfare war. this is bloomberg. ♪ from bloomberg's headquarters. welcome to divert asia. a positive start after strong earnings lifted u.s. markets. rebound toready to improve funding at the bank. it is just past 8:00 p.m. on a tuesday. slowdown have already been sown and a historic meeting moves one step closer. >> still some question marks -- the white house seems to be downplaying the threat, but in letdown when it comes to president trump and how he will be negotiating with japan on trade. we have seen the trade balance here back to a surplus. see a pretty big miss. couldnly, president trump be increasing or intensifying some of the discussions. when heust thinking heard the numbers. meantime, let's get the first word news. >> the internationaux monetary funds expects the global economy to continue to expand. the prospects of the next

airliner because of an accident. that was in february 2009 when a continental express flight crashed into a suburban buffalo home, leaving 50 dead. in today's incident, it's unclear exactly what caused the plane's left engine to explode. we're now learning the woman killed, albuquerque banking executive jennifer rearden, had been on her way back from a business trip to new york. >> this is a sad day. and our heart got out to the family and loved ones of the deceased customer. >> reporter: southwest airlines says it was not aware of any issues with this particular plane, which was delivered for service by boeing back in july of 2000. southwest ceo gary kelly says the airline has been in touch with boeing and ge, which made the engine. >> the airplane, in my opinion, is proven. it's very reliable. >> reporter: kelly also confirmed the plane was last inspected just two days ago, on april 15th. >> the problem is that we've had two incidents in less than two years. and the question is, is it a maintenance problem with southwest? is it a design problem with the manufacturer? or is it some new failure mode that we didn't know a

airlines, yesterday we heard from american. yesterday we heard from jetblue. heard from united and delta trying to give upbeat outlooks. yet this group is not coming out of the doldrums. united continental down 4%. american down 4%. couple stories, we're not buying. not believing in airline story at the moment. coupled with the fact you have higher oil prices which weighs on transportation stocks across the board. melissa: they're warning about airspace over syria as well for commercial airlines. that is not big story impacting the stocks connected to syria. nicole, thank you. david: we have jonathan hoenig from capitalist pig hedge fund. a fox news contributor. todd horowitz, the host of bubba trading. markets moving on syria concerns today. >> i mean moving partially on syria concerns but the bottom line the tops are in for now. the markets are going lower. you're seeing pressure in areas that you wouldn't expect. look at rally in gold and bond. there are fear underlying the market. we're headed lower, we'll find support but i don't think for a while. i think we go lower from here. david: jonathan, one thing affecting gold inflation is kicking up? >> it is breaking out. that is a warn

continental. we know what happened with the airlines lately. and then the eurozone.ns expectations disappoint badly, jim. >> i vote for global synchronized we're getting global china we're not getting what we want i mean, the pool i have is argentina is better. i mean, we're not getting what people think that has to happen if we're going to be able to see these big international companies do better we lose -- [ opening bell ] >> it's disrupting what is a placid environment that's because president trump in year 2018 had enough. >> yeah. there's the opening bell s&p at the bottom of your screen obviously pretty good at the open and the big board it's global payments celebrating the 17th listing anniversary. at the nasdaq revance. jim, your focus will be on gs and whether it can hold the premarket bounce. >> yeah. in the conference call, i said, the last few calls and the conference call there's been what i call a tepid view i think the ceo, david, i think i have to get you in on this i think the ceo is just saying, listen, the environment is good. we do the r.o.e. at

united continental had earnings and stock is up big. >> yeah, and i own alaska airlines so i'm particularly interested in this because the whole sector has really been sold heavily for the last few months since there have been concerns about capacity increases. that usually leads to -- excuse me, to fare wars and lower profits, but united beat on the top and bottom line and raised guidance whatever concerns people have about the sector and capacity, they really should discard them. this is a cheap sector that is growing earnings far faster than it's growing capacity. >> ubs initiating coverage of the steel stocks today they take a cautious view. ak steel, u.s. steel, gets sells. pete, you own both >> i own both and happy tosee them green in the commentary here clearly, they're talking about some of the price issues that aka faces, and u.s. steel is an interesting one, and they face a few things too how about the idea that there might be something down the line under president trump that could be a boost to these guys, infrastructure, right? i would not be selling these stocks >> you recentl

continental that is providing a lot of competition. you also have the newer entrance to the market, jetblue, spirit airlines, and their labor costs are lowerican airlines because they don't have in same labor contract place. they are up against a bunch of different competing factors to give them less pricing power. you won't get bigger legroom or more snacks. shery: we should take our holiday right now. >> i am off. shery: thank you so much for that. from planes to trains. the trump administration continues to push for trade talks with china. companies in the u.s. are feeling the affects. spoke with the union pacific ceo who explains what he is seeing for the first quarter. >> certainly we are already starting to see an impact at our business in terms of increased steel prices, the tariff or riff hasf ta caused a number of suppliers for product to us start talking about increasing rates or pressures on them to increase prices. we have seen that and i am going to guess if the threatened actions go into place between the u.s. and china we will see more of that. it will make products more expensive and fundamental economics, we will see less

airlines jumping. united beat the street on top and bottom line. 4% higher for american, united continental. part of the reason they did so well? higher fares. they have beaten for eight straight quarters. quick peek, best buy, amazon, how many people talk about shopping in best bye, buying online. now they have a collaboration, selling smart tvs on amazon. this is best buy's first foray with amazon. what suffers? roku with a down arrow because of this deal. back to you. melissa: nicole, thank you. oil surging, closing near 3 1/2-year high. what is driving crude today, phil? >> there are a lot of things. geopolitical risk. people have not talked about venezuela. they arrested a couple of oil workers. already roiling the oil industry. it is about strong demand, gasoline demand in the united states hit the highest level ever in the month of april. that is amazing considering most of the country has been pretty cold and a lot of people have been staying home. it is a demand-driven rally. the economy is doing good. it is driving. we saw a drawdown in oil inventories, a drawdown in gasoline inven

any commercial crash, in terms of a crash involving a main line airline, one of the majors, as you mentioned, colgan flying for continentalsouthwest there was a fatality on the ground in chicago. before that, 2001, a couple months after 9/11, that american airlines taking off from jfk >> still happens in other parts of the world, but it shows that safety does matter and inspections do matter. but it's still rare. all right, phil. i don't know have had you on a lot talking about different airline issues, right? let's hope this is it for a while. >> hopefully >> for the next nine years seth, appreciate your time today. >> you got it. >>> when we come back, ibm shares getting slammed after the company posted an earnings beat, but the shift to higher margin businesses not going as fast as some shareholders had hoped. we will talk to an analyst about this the stock is off by just over 4.5%. >>> also as we head to break, look at yesterday's s&p 500 winners and losers - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i