taylor: this week's european cover story all about air france klm.s an iconic brand known for its supersonic flights, fancy flight attendant uniform. they got a new ceo and he has some headwind. taylor: we got the scoop from reporter matt campbell. matt: air france klm is one of the largest carrier groups in the world, appointed a new chief executive, a guy named benjamin smith who was the number two at air canada. that followed three months of really leaderless stasis and pretty severe crisis, especially at the air france part of air france klm, which has been suffering terrible labor discord that has grounded a lot of flights, cost the company an inordinate amount of money, and created something of a mess for this very large airline at the heart of the summer travel season. this is a company that is in some amount of turmoil, trying to arrest that turmoil and doing so in a very difficult market, where any misstep by a big airline can be exploited ruthlessly by all the budget carriers. jason: talk to us about where air france sits in the french imag

. >>> an icy welcome for the new man in control of airfrance-klm. shares sell off after benjamin smith is named as ceo. >>> charting the course. danish shipping giant maersk announces the sale of its drilling giant >>> good morning welcome. atlantia shares are rebounding after a sharp drop on thursday there's an investigation into the country's biggest toll operator after the bridge collapse this week that left at least 38 people dead italy's transport ministry says transauto has 15 days to prove it performeded a yit maintenance on that bridge >>> the terms are not publicly accessible, for us as ministers it's difficult to access these documents. once we publish everything, you will understand which of the various boundaries were made we know there were breaches. one cannot die in italy after paying the highway toll. >> autosstraytrade said it perf regular inspections of the bridge claudia joins us from cnbc in milan. what is the latest on the investigation? >> yes good morning of course as bodies are still being searched for, there are about 20 peo

on business insider air france—klm's next ceo is going to be an air canada executive and french unionskling unions. on the wall street journal "sec probes tesla over model 3 production disclosures" — it says regulators began investigating last year whether tesla inc misled investors about its model 3 car production problems, according to people familiar with the matter. on the new york times a backlash to microtargeted advertising on facebook is growing. and don't forget, let us know what you are spotting online — use the hashtag #bbcthebriefing. that's it for the business briefing this hour. but before we go, here are the markets. a bit of respite with the turkish lira upholding its value slightly. and trade talks between the us and china. more from me in a few minutes. ten of england's most challenging prisons are to be given a total of £10 million to improve security and living conditions, as part of a government drive to tackle drugs and violence in jails. ministers also want to raise leadership standards by sending prison governors to military—style staff colleges. our home affair

some breaking news coming in from air france klm. announcing a four-year fuel bill rising.his is part of the cost story over there. to september.t in terms of the numbers they have actually reported, second-quarter operating 345 man dollars -- $345 million. some of those estimates have no doubt been coming down because of the strike activity, that is something that has been hurting this business. we saw 12 days of strike action wiping out passenger growth . better than estimates, but worse than last year. strike action in france very much evident. we are going to be speaking to the cfo of air france klm joining us for an exquisite interview at 9:00 a.m. u.k. time. we wait to hear if we get any further news on the new ceo over at air france flm, because he was a victim of that strike as well. i should also tell you that we just had numbers through from the investment banking business over in italy. their fourth-quarter quarter net income came in at 182 million. of the 136ahead million they gave us last year. ratio, 14.1%,e building on what they reported the previous year. th

. >> muni finished the project on time to restore full service on the klm and t metro lines. >> in the east bay, people took part in a bulky block party in an effort to keep their city clean. abc news was in east oakland where neighbors had a chance to dump large bulky items for free. the event featured food trucks and music. people got help unloading items. two other bulky block party events are planned in oakland next month. >>> crews are cutting down trees in berkeley due to the threat they could fall on their own. abc7 news was at university and mcgehee avenue where seven businesses and three homes are under an evacuation order because of the threat. a city spokesperson tells berkeley side three trees must come down because of their condition paired with excavation work in the area for newhousing. > i'm a bay area resident and i think having more housing is important. so that we all can afford to live here. on the other hand, it always makes me sad when i come by and see a tree being cut down. >> yesterday, crews were able to remove one of the six redwoods that were deemed unsafe.

we have seen companies though pulling out of iran — british airways, klm france, the energy giant, totales that are pulling out. there is nothing that you can do to keep the deal alive and that seems to be being recognised by iran as the supreme leader said, "keep contact with the europeans but you should give up hope on them over economic issues or the nuclear deal." well, a lot of these major companies you mentioned are in a difficult position, because they had to decide to continue their economic corporation, their business in the us or in iran and, of course, many of them will decide then to go on to the safe side and turn towards the united states. we have to accept this decision — it's absolutely understandable. but what the european union can do is to help those small and medium—sized companies who invested in iran, and we encouraged them to invest in iran, and now are facing some economic problems. so i think the european union should concentrate on the small to medium—sized businesses from europe operating in iran so we can at least continue our economic co—operation there, but

we also have air france klm.rench union saying it will over salaryconflict negotiations despite the fact the company has a new ceo. finally collective. facing a 10.5% drop. analysts noting that the key radiation system sales are slowing down. i want to look at the bond market and what is happening there. down by only three basis points. that is because the eu chief negotiator said there is a chance of a no deal brexit in an interview today. we are continuing to look at italian bonds under pressure. yields falling -- rising seven poet points as political -- continue to brew in italy. that is a look at european markets. startinghe u.s. we are with the dollar index. it is higher by a little bit this move the other currencies are interesting today. canada is still a strong quarter of 2.9%. this has to do with the trade trade as well. hows interesting to see these currencies are trading. canadian dollar is weaker. the mexican peso is about 19 again. 1.1% even though we had this deal now which could turn back into a ne

. >>> airfrance-klm shares are taking off as strong shaal sales offset labor pains the airline reportedll in quarterly operating profit as strikes wiped out 335 million euros from earnings in the first half >>> volkswagen has posted a 23% rise in underlying second quarter operating profit, that was a beat of expectations the german carmaker maintained its full-year guidance, but the ceo warned that challenges lie ahead, particularly in meeting standards for new anti-pollution tests. >>> arcelormittal's quarter profit has surged by 45% beating street forecasts the company expects favorable market conditions to continue with global steel production to rise faster than originally anticipated, driven by a more positive outlook in china. the stock up 1.5%. >>> thyssenkrupp shares are under pressure after the engineering group cut its guidance citing cost overruns and sluggish orders. thyssenkrupp said they now expect adjusted ebita of 1.8 billion euros, compared to 1.8 to 2 billion euros the profit warning comes ahead of earnings out next week. >>> proposal to increase tariffs on 2$200 billi

--ance-klm interim ceo joins us for an interview. get his take on what is happening.ucturing and massive air traffic control strikes in air france. this is bloomberg. ♪ matt: welcome back to bloomberg markets. this is the european open. i am matt miller in germany for the volkswagen earnings. the group has put out a bigger operating profit. euros.illion sales missed just slightly at 61.6 billion euros. about 1 billion and the estimate we got in an analyst survey. as a result, volkswagen shares are trading pretty much flat. you might see a slight green arrow, but it is not a huge gain in markets that are up a little bit more than .1% right now. we are going to interview the hours,just a couple of after the company holds a press conference. join us, come back to us at 11:30, or stay tuned to bloomberg for that entire time. let's get the other movers in the market. industrials and commodity producers this morning. highest quarter profits in seven years. it is expecting that steel demand to grow. also, the tariffs that we have seen as part of this trade war have left some

air france klm down more than 2%.illiam hill down more than 2%, as well as game holding and swedish mats down 1.7%. take a look at losers -- i'm sorry, i said down, but i met up in all those cases. clearly they are green. we see losers in the form of iwg, off 20% after pe backs off, linde concern about a failed merger, down almost 10% as well. let's get bloomberg first word news sebastian salek. president trump says he has the upper hand in the trade war. he said the nation is prepared for a protracted war and doesn't see sacrificing short-term economic interest. the exchange of barbs says it will retaliate against the u.s., who proposes tariffs on $200 billion of imports. saudi arabia suspended diplomatic ties with canada in a dramatic escalation over a dispute over the kingdom's arrest of a woman's rights activist. canada ordered an envoy to leave within 24 hours. the saudi foreign ministry was excited by the canadian foreign minister, criticizing the arrest of the activist. saying 5% or is higher. jamie dimon made

air france klm has named air canada's ben smith as ceo, casting aside union objections to entrust a foreigner around europe's biggest carrier. the new ceo will take the reins. smith is currently the operations chief of air canada and will succeed the former executive, who failed to stop the number of strikes. they will search for someone as soon as possible for the post of nonexecutive chairman. the royal bank has tapped katie murray to be chief financial officer. murray, who is currently deputy cfo, will take on the role in the beginning of october. steven sent leaves the board at the end of september as he heads for a job as finance director or hsbc. tesla executives have reportedly been trying to recruit a coo or another number two dated to assume some of elon musk's day-to-day responsibilities. the search has intensified in the wake of musk's recent tweets. in an interview, they say they approached facebook's cheryl sanders but quote to the best of my knowledge, there is no active search. more, a partner at credit suisse in brazil is leaving the fund. the bank with faster part of the busi

shares of air france klm are rising.uggling carrier posted second-quarter profits that beat estimates despite uncertainty and the search for a ceo. bloomberg spoke with the company's cfo. >> [indiscernible] -- which is good news, but of course we also have to keep in there is an effect -- quite a negative impact. francine: thanks so much. apple shares jumped in extended trade after the world's most viable company projected sales that suggested consumers are continuing to snap up high-end phones. is apple poised to become the first trillion dollar company this week? joining us is alex webb, who covers bloomberg opinion on tech. still with us is andrew sheets of morgan stanley. there's a supply chain problem. is the trade war escalates, apple will be hit. guest: yes, it will hit the supply chain. has said -- reporter: yes, it will hit the supply chain. tim cook has said it will affect production. even if they are unable to squeeze more profit by raising the price of the iphone, they are able to squeeze more on the bottom l