lufthansa has not done that.hey have consistently paid people more money. >> is that middle management or brown workers? >> throughout. >> you think there needs to be a stare down with the unions and potential reckoning with middle management. >> one of the advantages with germany is that the labor force has visibility to all that numbers because they sit at the top. other airlines do not have that advantage. the works council here has the most visibility to the real .umbers there should not need to be a stare down. there should simply be a reality check of everyone sitting there and saying, how does this airline succeed? lufthansae talk about the airline then lufthansa the group. the group is reporting profits. most of that comes from technik, catering. is core of lufthansa struggling. it has stagnated for over a decade. one has to look back to 9/11, where they had a cash crisis. the ceo's successors have done a great job strengthening balance, but the core of the business has not improved. >> what happens when

to find the cruising altitude for lufthansa. they have pressure above.qatar, emirates, there is a lot of pressure there. at the same time, you have easyjet and ryanair. german wings will do all the short-haul flights that aren't hub related. they will be doing a lot of inter-germany flights. an problem is, they are at operating cost disadvantage. the ceo of german wings mentioned that at the frankfurt airport. they cannot compete with the likes of easyjet and ryanair. these are the challenges he faces. he also faces high labor costs. a few things left unsaid does have going for it, incredible reliability. safety standards, one of the industry leaders. those are very important for german consumers. remember, just six weeks ago, they issued a warning. the stock went down 16%. that is the most since 9/11. we saw a profit warning from air france. it is a difficult time to be a european carrier. >> it obviously is. they have a huge amount of industrial relations issues. ,alk to me about a bright spot a subject close to my heart. food. the catering business, i

>> i'm just heard lufthansa group, which includes lufthansa, swiss, are now suspend iing all flightshey decided to suspend flights for 36 hours. and from vienna. so now, it gets interesting. >> now it's all u.s. carriers because the faa has stopped all u.s. carriers for the next 24 hours. now lufthansa as well. >> the big one, besides lufthansa, you're now waiting to hear from air france, which is the other big carrier, whiz air, which is the low caost carrier, and ang, which owns british airways. >> john vause reporting, because he was on the flight that was diverted. went to an air france representative who said they are not flying in. >> my best hunch is now lufthansa has taken this decision. it's very difficult for the other major carriers to continue to fly in the european carriers. we'll have to wait and see. we'll find out in the next hour -- >> the impact of this, beyond the economic impact, just psychologically, i mean, it's a real blow to israel. >> there's no question. in many ways, you know, this is the difficult situation israel now faces. there probably was no realistic

and, lufthansa shares slide on weak results. we are live with the carrier's cfo earlier -- eight are in the program. in the meantime, let's get straight into our top company story. adidas shares are under pressure. the company slashing its profit forecast. this among other things, russian unrest. let's find out what is going on. hans nichols is in berlin with the details. >> good morning. there are two things at play here. one, russian unrest. that is a weakening ruble. so much of their sales are in russia. anthe last quarter, they saw 18% decline in sales. whether it is golf or russia, stock is down more than 10% this morning. here are the numbers on their profit warning. for 2014, they expect 650 million euros for profit. that was before estimates of 890 million euros. h, a is almost 25% slas remarkable move. when we get to the russia story, when are we going to see an economic impact for german companies when it comes to sanctions or even a slowdown in russia? it looks like it is finally hitting. they are going to be closing

still to come, and lost at the lufthansa.k at the results from europe's second-largest carrier. ♪ time for today's company news. a top party official is forecasting a drop in sales in russia between 10% and 12% as european sanctions take hold. the chief executive of audi russia says the premium market has remained strong but now, sales are expected to suffer. despite sanctions, russians are still drawn to the audi brand. russians love german cars. not only audi but all german cars. it is a sign of quality, a sign of success. our customers will not stop buying them because of political issues. posting aon second-quarter profit missing analyst estimates. the biggest mark phone maker is having difficulty retaining market share in china amid competition from cheaper phone makers. shares fell after profit dropped 18%. lloyds banking group is said to have suspended at least he didn't traders after the settlement with the bank of england over libel allegations. -- to have suspended at least two traders. they manipulated the sterling

is german leaders accompanied by the heads of siemens, lufthansa, and volkswagen.traveling in china will soon luxury easier to get a ride in downtown. kuaidi as luxury cars. its is thissustain into the long-term. it generated sales of $8 million last year. it is putting itself into the higher market. that it does but it head-to-head with another company that recently launched its services in thailand, which is uber. uber a website or does it just look a lot like it? idi and has the same feel, slip cars and booking service -- slick cars and booking service. in a similar way, looking with chauffeur services and it will get 20% to 25% cut of the trip. uberct, the ceo said that has a very similar model or that kuaidi has a similar model to uber in china. it is different from how it operates in the u.s.. in china, it is the luxury end. >> isn't there already taxi booking apps in china? >> vs, one backed by alibaba has been in a fierce that'll with -- tencent.ttle with offeries like easy taxi services in beijing. the competition is fierce. is trying touaidi move into the

how is lufthansa doing?yan wondering is oil. >> the hedging for all airlines has been tricky of late. is affected by huge macro issues. at the moment, it seems relatively stable. you have to ask how long that will be the state of affairs. as far as the policies are concerned, they find themselves in the middle of nowhere. themheaper carriers have hedged in nicely. they havexury brands, a way to go to get up to that space. that may well be the tablet for europe. >> tell us about shire. >> the u.s. company has come back in and increase their offer 11 pounds. >> the fourth offer now. >> u.s. officers -- companies are looking at u.k. companies. >> why wouldn't you want to pay 80 13% irish tax rate? >> it is unlikely they are going to completely ignore the u.k. seen. they may well come back at a later stage. maybe just tweak the ratios. help us understand the headline that crossed about one hour ago. it's as they have not gotten written support for the shire offer. >> they talked away from the normal template. th

certainly huge shock, particularly for malaysia airlines. ,> we know now that aeroflot deutsche, lufthansa, air france, delta airlines completely isiding that airspace as pretty much every airliner after this incident. what is the reaction from leaders in russia? and also the rest of europe. >> i will give you two examples. , people suffering death on the plane. the first is angela merkel, who is shocked and demands a swift, independent inquiry. i'll be slick president vladimir -- he blames the ukrainian government directly. -- obviously president vladimir putin. they have agreed that the crash site evidence will stay in place. angela merkel mentioning about the shock. there were 154 dutch on the plane. the dutch prime minister mark rutte says he is shocked and devastated. there were 27 australians on the plane. it is unspeakable crime if the plane was shot down. david cameron with comments about the nine britons, shocked and saddened. >> this is a very popular flight path for europeans are people who travel from europe to asia. -- you areolutely absolutely right. 290 people dead, as you r

you have lufthansa. easyjet has never been able to compete with us on price.a good job of going after some of lufthansa and ba's business passengers. ryanair is copying that trend. they are doing so with a huge cost in price advantage. our principal competitors across the european space are ag -- r i .g 00 are iag and lufthansa the business continues to involve. >> thank you for your time. that was michael o'leary, speaking to us on the phone from dublin. by spring.strike what effect it could have on food production. ♪ >> welcome back. they report was just released earlier this morning. lower prices may not be here for long. el nino is expected to strike this year and it could royal agricultural markets around the world. good morning. thank you for coming in. let's look at the price and the commodities market. how are commodities markets pricing and the threat of el nino? >> we are comfortable. we have not seen too much of an impact. risktle bit of a weather into the tropical commodities. see -- fromere you el nino. at this point in time, prices are fairly com

spokesman for lufthansa said the situation remained unchanged. on tuesday, lufthansa joined other airlines and suspending all services to tel aviv after hamas militants began targeting the airport with rocket fire. israel says the iron dome defense system can only intercept nine out of 10 rockets. turning to the ukraine now, 20 40ch forensic experts and unarmed police officers have arrived in the country to investigate the crash of h17.ysia airlines flight m australian officials at the scene say they are still finding body parts. a truce has been declared in the area that is controlled by pro-russian separatists. the netherlands is leading the investigation into the crash. 200 -- 283 on board were dutch internationals. is -- the euhis -- is agreeing on sanctions that could target russian business interests and they could take effect as early as next week and hamper cooperation on security issues according to the russian finance minister. now, russian companies have relied heavily on european capital. the eu plans to restrict funding. bonds issued

you have the german carrier lufthansa and klm canceling flights. debris associated with

easyjet, lufthansa can buy their aircraft in europe.e believe this'll become another reserve currency just like the u.s. dollar. now we offer it to any airline if you would like to. when it came out, it it was at 119. >> thank you so much for joining us. we will let you get somewhere with more air conditioning. thank you very much. the words of the airbus coo. the euros to strong and that is one of the biggest problems. let's get back to the other big theme. are.g to decide where we -- let's talk about janet yellen. you are looking tired already. the new yorker says, a very dovish town. are we going to have to stick with lower rates? >> she will not move away from this dovish position at all. >> managing the transition from not. two things like forward guidance and liquidity withdraw. the first rate hike is the main obstacle she has to overcome. i would like to look at things from a currency perspective. cover on thewill dovish side as long as they can so the transition is a smooth one and then the question is, how rapidly did they miss

lufthansa will create a long-haul discount arm.ey are in advanced talks with a turkish airline about partnering in the venture. the carrier will fly to cities in asia. the ceo says high-end travel also remains a priority for him. >> we are focusing on high-end re-fleeting with a new business class. we are well-positioned with the fourth lowest overhaul for the upper end of this will us in the long range as well. welcome back to "countdown." i'm an edwards. >> i'm ryan chilcote. >> let's talk about india. >> the next budget for india will be unveiled. bloomberg tv by india correspondent who joins us . what can we expect today? >> not too much. that's the view that most of the brokerages say because the government has been in power for just about a month. the announcement of the budget is expected to start in the next 20 minutes or so and fiscal prudence will be on top of that agenda. the fiscal deficit has been in 4.5%t at 4.1% versus the announced in the last budget. that said, the fiscal deficit has come in for the full-year targe

we seen problems with lufthansa and air france. everybody is worried about airline capacity in the airline industry. those numbers have to come back. >> it's inefficient. >> these are brand-new things they've already bought from boeing. they already have them in the pipeline. that's a huge concern here. one, they announced the deal. stocks didn't go anywhere export import bank. they're talking about closing that down? who gets 30% of the deals? boeing does. >> j.p. morgan won't finance those deals? >> at double. >> time is up. >> s&p cale out today and said double up the balance sheet. >> by the way, you can still soet. keep soeting. >> he agrees with his brother. can i have a word? >> i'm just saying. i've never seen. >> you are probably bearish. >> wow! >> more in the camp with b.k. >> bearish. >> it's a grower. he talkedant record revenues. it's growing at low single digits. it's not a cheap stock. >> double digit revenue growth. >> it's not. i'm looking at it right here. it's at 34% expected this year. >> agree with your brothe

air and some international carriers, including lufthansa, klm and norwegian.ael is pushing back, trying to ensure airlines it is safe it fly to and from its main airport. an angry transport minister calling the u.s. move a quote prize to terror. the country's own airline continues to fly. currently the faa pro hb its u.s. airlines from flying over eastern ukraine and crimea, north korea, ethiopia and libya. u.s. planes can fly over iraq but only above 20,000 feet. and aa warns of dangers, including missiles and small arms, for eight countries including sir wyria and afghani. some critics say security decisions belong solely with government and say faa warnings urging airlines to use quote extreme caution is too vague. >> i have no idea what extreme caution means at 33,000 feet in a commercial airliner that has no protection against any ground missiles. i don't know what faa is saying there. >> 11 days ago, the military arm of hamas threatened an attack on the airport. but to be clear, that did not prompt the faa ban on flights. it's today's rocket attack that

lufthansa and air france, we both know our warning on profits. what was his take on that overcapacity debates? >> we are desperate for capacity with the 787 delay of over three years. and now the 350 is making a huge impact in qatar airways expansion plan. >> air france and lufthansa are talkingngs about patching up their problem and not industrywide. >> it is their problem. they're not keeping the costs under control. this is not the case with carriers in the gulf. our costs are well in control. qatar airways.om lufthansa and air france have to blame some of the middle eastern airlines for the level of capacity we're seeing on some of those long-haul routes. qatar is not -- is saying is not a problem. he says their spaces are not competitive. hasays that qatar airways an under capacity problems because of delays. why are they not taking delivery of the superjumbo? it seems to be a bit of a mystery. i asked him what was holding back the delivery's. >> we have issues with the 8380. i would not like to say it in front of the camera. i would prefer

the reasons we're given this morning are almost the same as the reasons given two weeks ago by lufthansa. resulting in lower prices on lower margin, air france says that the overcapacity is quite important on north atlantic and asian routes. stressing the level of bookings for the summer period. france says it's going to -- its new guidance is 12% lower than the previous one. it's targeting a growth operating profit between 2.2 and 2.3 billion euros for the year. that's compared with the previous guidance of 2.5 billion euros this year. they're suffering from the challenging situation with one of the airlines which has been blocked by the local authorities due to currency related dispute. the government requires airlines to sell certificates in the local currency. air france says that $290 million of revenue are blocked until the dispute will be resolved. now, on a positive note, air france insisted that, first of all, despite the 12% drop in the guidance, the ebitda will be 20% higher than last year and that the debt target remains unchanged. air france plans to reduce its debt burden t

when you start to see cancellations and capacity cutback from lufthansa and the middle east. that's going to hurt boeing. so, i think you stay short, boeing. >> apple? >> i think going into september, october, i think you see it above par. >> and this one, it's goating expensive on valuation. long on earnings, stay ahead of it. caterpillar. >> before our final trades, we want to wish our good friend b.k. good luck. if you're on nantucket, cheer him on. going through the triathlon. good luck. tim? >> and a happy birthday to beautiful wife. >> twitter. >> blackstone continues to rally. >> come back next week for more "fast money." stay tuned for "options action." are you sure we should take this billboard down? people find out state farm does car loans as well as they do insurance, our bank is through. good point. grab an edge. look there's two guys on the state farm borrow better banking sign. nope for real there's two dudes on the state farm borrow better banking sign. [ reporter ] breaking news from the state farm borrow better banking sign... we're seeing two men that have

no free lunch in the uconn so -- lufthansa business lounge.is ticket and did it again and again. before the5 times very expensive business-class ticket was canceled and refunded by lufthansa. they took him to court. the court found him guilty and fined him $2700. that is 55 euros purchase how session. they got meatloaf and sausages. >> it is disingenuous. exactly. the judge decided it was disingenuous. this man was malevolently -- >> put it in the fine print. steep. is pretty >> how many did he have? >> we do not know. we do not even know his name. it is like a protection group. [laughter] drunke you ever eaten and in a business lounge? >> is probably something i should not answer. [laughter] >> i thought we all fly business? [laughter] matters, this is a great story. it was in the bbc. i was reading it with much interest yesterday. it has been picked up by all of the press. google's right to be forgotten. reason and got a that piece or link is no longer relevant, can you take it down? this is not caroline hyde partying in 2009? >> no. there w

you have the german carrier lufthansa and klm canceling flights. debris associated with a rocket has landed at the tel aviv airport, ben guidon. three u.s. carriers, delta, united, and u.s. airways suspended flights to israel on their own even before the faa issued its notice. so we have cnn's atika shubert who is standing by live for us. also, our aviation correspondent richard quest is standing by. atika, since you are there, let's begin with you and tell me if you're seeing, what you're hearing, flights coming and going or not at all? >> reporter: no, we've seen plenty of flights coming and going. the airport seems to be operating as normal. having said that, a few seconds before we were live, the sirens went off, there was a red alert and we saw a rocket interception in the air just above the airport and a few seconds later a plane taking off. so that perhaps goes to show the reality here that the airport is dealing with. rockets are landing and are being intercepted right above the airport. in fact, that rocket that you mentioned earlier lande

hans nichols is back from left to talk- from lufthansa planes with us. who is placing this new order? >> it is indigo which is india's biggest carrier. they want to order some 200 planes. the catalog price is $100 million. that gets you to a $20 billion order. it will probably end up lower than that. this is all according to a person familiar with the matter. it is about heating up the market in india. other carriers have tried. you look at the numbers, the number of flights people on the subcontinent take. 1.8 flights per year per american. 1.0 for a german. zero point two in china and 0.1 in india. the last hour, we were talking about rail may be making a comeback. but planes are clearly going to be part of the future. if they can get the financing, the infrastructure and the safety clearance there is going to the a massive market. you will see a competition they're just like you have seen elsewhere. at least with indigo, airbus appears to be winning. >> it is going to be fascinating to watch. the point i was trying to make was the point that tony fern

air carriers and other european ones like lufthansa because of this rocket which fell about a mile away from here yesterday and given what happened in ukraine, i think there is a sense of a great deal of wishing to not take too many risks at the moment. >> bethany bell there reporting from ben gurion airport in israel. >>> the british model and tv presenter peaches geldof who was found dead in april this year had been a heroin addict, almost taking the substitute drug methadone for two and a half years. that's according to an inquest into her death currently under way. her husband told a hearing that the 25-year-old started using heroin again in february this year. he said he saw her flushing drugs away after she had hidden them in her house. her father, of course, is bob geldof, known right around the world for his charity works. her story has resonated with many people. >>> stay with us here on "bbc world news," much more to come. the wrecked italian cruise ship costa concordia started its journey to the scrap heap. 3rd and 3. 58 seconds on the clock, what am i thinking about? foreign

entry about aviation, health danger information caused by airplane noise was deleted by someone at lufthansa. and that page on daimlerchrysler on the lobbying act about the company was deleted by someone at daimler. multiple attempts at manipulation have been exposed and corrected by other users. wikipedia insists it was not involved, but the website comes under fire constantly from public relation firms and lobbyists. until recently, this man was the executive director of wikipedia in germany. he says since wikipedia has gone, so have attempts to manipulate articles. >> wikipedia is more than a website. it has become a widespread tool for all of us. the more widespread it has become, the greater the number of attempts by ideologues and pr agencies to insert their views and ideologies into wikipedia. >> and they are getting better at it. we met a consultancy insider. he will not talk about his clients but he will talk about tricks used to bypass editorial controls. >> there are lots of highly skilled professionals who put a lot of effort so that wikipedia doesn't have a chance to expose them

not much brighter for lufthansa. second quarter net profits fell earlier due to strikes, adverse currency effects and overcapacity on its north american and european rigs. a whole bunch of factors impacting the airlines. meanwhile, alcatel-lucent had share reaction out. the cost cutting measures have enabled the country to improve its operating margins. the telecom equipmentmaker posted a net loss of 298 ur he ros. perhaps investors had become optimistic around the country of late. we spoke to the cfo earlier and asked about the next big project in the pine lines. >> i have announced this morning as you referred to potential ipo of our submarine network, which is the worldwide leader in undersea telecommunications. so i have mentioned that i intended to final an ipo in order to final the development of the country. this is a real industrial project in order to strengthen and to increase the leadership of alcatel. >> let's take a look at some of the top earnings he stateside. some of the earnings have been fairley pos

the flights were canceled, lufthansa canceled all flights to and from israel.e know that john kerry was called in by netanyahu yesterday protesting vigorously against the faa decision. in support today, el al, michael bloomberg flew on the israeli airline to show solidarity with israel's people. are you hearing anything different from israel's officials as the world pressure increases on israel? >> just to speak on the narrow subject of the airline ban, there is outrage in the israeli government on that. they say it's rewarding terror and they want that ban turned over as quickly as possible and they are waiting to see how the faa responds within the next hours, though, because the ban by the faa creates a domino effect among european airlines and now if the faa overturns that decision, israel will follow. i have to say, you referred to my time here. i think that the speed of the killing in gaza among the palestinians is pretty much quicker than any of the past. a number of dead and wounded is happening so quickly. the attack is so intense. but one has to say t

of the airlines: delta, united, american, us airways, klm, lufthansa and air france. usually if you are headed out of the area you connect at other airports such as l.a.x. or john f. kennedy in new york. the initial flight to the airports will be available but you will not be able to fly from this to tel aviv for a while. there are exceptions. israels national carrier had flights interest from john f. kennedy and newark and british airways continue to operate normally but that mean you have to connect to a flight leaving from europe in response to the rocket strike that landed a mile away from the airport this morning. the f.a.a. will monitor and evaluate the situation and update airlines when permitted. israel transportation officials are trying to convince the airlines to change their mines say it is safe to land in tel aviv at the airport. i spoke to two officials and san jose's national international and they are not seeing a direct impact but check with your airline to find out about changes. >>> and there are findings being laid out about the malaysian airport t

after lufthansa lowered guidance last month. >>> and commerce bank down sharply.the german bank in settlements talks with u.s. authorities over dealings with iran and other countries blacklisted by the united states. commercial bank could end up paying at least $500 million until penalties. that's according to the "new york times." >>> when we come back, why is walmart trying to be more like amazon? the kceo of wm wvalmart u.s., breaking don the strategy. >>> the nasdaq leads the way lower, currently down some 68 points. we've not had a 2% drop on the nas since early april. dan niles breaks it down when "squawk alley" continues. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. >>> welcome back to "squawk alley." let's check out the big moment

. >> hours earlier, the < jumbo -- the lufthansa jumbo that brought the team that flew over the fans. after for thrilling weeks, the soccer heroes were finally home. it was a hero's procession to get to the brandenburg gate with fans lining the streets, and the closer their open top bus got to the fan mile, the slower it went. the players took selfies and celebrated. after an hour, the champions bid there well -- farewell and left berliners to continue the party. >> dw was in the middle of all that mass euphoria at the brandenburg gate. following events for us, my colleague asked for a sense of what was happening. >> it has been a fantastic morning, and the crowd in anticipation and heat have been growing all morning. when they did arrive, the crowd went absolutely crazy. on both sides of the brandenburg gate behind me, on east and west, this was history in the making, the first time that a reunited germany had won a world cup. it has been a long journey, as you mentioned. he had been on that stage back in 2000 6, 2010, now 2014, and was mega proud, he said, to have one, but another m

among the dozens of airlines that overflew the area in the last week, united airlines, lufthansa, virgin klm and singapore airlines. even after a number of military aircraft had been shot down by the rebels. all those airlines have stopped flying over the area now. >> everyone associated with commercial aviation is taking a look, not just at the ukraine. but at iraq, afghanistan, any area where there's hostility and saying, is our idea that we can fly above hostilities and be safe -- is that accurate? >> reporter: aviation experts say, if no-fly zones were declared in all of the world's hot spots, air traffic into and through the middle east and southwest asia would become very difficult. >> as all of these airlines trying to reshuffle their routes and try to avoid, you know, areas of conflict, that may very well add distance to flights, which means burning more fuel, which means more costs. >> reporter: and other than air force one, few passenger jets are equipped with anti-missile systems. >> aircraft are vulnerable to attack within the plane, but also from the ground. >> reporter: our

lufthansa was close by, so everybody to his risk, and of course, it is cheaper to fly the shortest connection, but sometimes it is not safer. >> so many playing a role in this? >> well, money always lays a role in aviation. >> thanks so very much for joining us. >> you are welcome. >> and thank you for being with us as well. we'll be right back after a short break. >> we will find out about a big surprise from one of germany's world cup winning stars. he's not going to be around for the next one. do stay tuned. >> don't go away. >> welcome back. israel has upped its ground offensive in gaza with artillery, tanks, and gunboats now being used, and it has warned that the operation could significantly widen further. >> the move followed 10 days of rocket fire between gaza and israel and various failed attempts by egypt to broker a cease-fire. >> one israeli soldier is confirmed dead in this latest operation that began late on thursday. palestinian health officials say 27 palestinians have been killed. >> this is israeli military footage showing tanks as they enter gaza. the commander encourages t

and airbus agreed to sell 123 helicopters and german carry lufthansa struck a deal with air china. merkel is looking to boost german exports to china. germany is china's biggest trading partner in the european union with france and britain falling behind as you can see here. german trade exports to china amount to almost 74 billion dollars in 2013. german oil production dropped by .8% in may in comparison to april. third consecutive monthly drop and weaker than expected. that helped to put pressure on european shares and all three indexes ended in negative territory. lunethansia was bucking the trend and we saw their shares higher. this is the state of play of the united states at this hour, dow jones industrial average trading down about a third of a percent. nasdaq down almost .8% and s&p 500 down almost half a percent. this follows fresh record highs last week. as you may remember dow jones industrial average ended the week above the 17,000 mark last week. as you can see, dow jones industrial average is above psychologically important level but as i say trading down. >> let's ta

talking about the federal aviation administration in the united states, but our viewers should be, lufthansatill has that ban in place, and things are not back to normal. let's talk about a potential ceasefire here. u.s. secretary of state john kerry in the region pushing as hard as he can to get a truce agreement in place. how likely is it we'll see something in the coming days, john? >> well, it's a good sign john kerry is still here. he spent the night in cairo. we don't know who he plans to talk to today, but at least they're still talking. these sides are far apart. we know hamas says there will be an end to the fighting temporarily, providing the borders around gaza are open. the israelis aren't keen on that. they want gaza to be demilitarized. hamas is not keen on that. the u.s. is trying to come up with a formula where they can stop the fighting now and then in the next couple days deal with those complex issues. let's listen to the secretary of state john kerry. >> we had a good conversation today about how we can take further steps, and we're doing this for one simple reason. the p

lufthansa, delta and others are avoiding it. >>> we have team coverage tonight. mark matthews has reaction from the bay area's ukrainian community. we begin with steven stock. one of the concerns, this route has been deemed safe but recently it's been unsafe. >> that's exactly right, raj. we pieced together flight paths over europe dating back over this area over the last several weeks. though many airlines appear to have avoided ukraine altogether, several airlines, including malaysia air, continued to fly over the country regularly despite the conflict there on the ground. despite the fact that at least one cargo plane had already been shot out of the same sky in the same region, less than a week ago. >> the pictures show the aftermath of what u.s. officials now believe was a missile strike on the boeing 777 flying at 33,000 feet. data from the internet site, flight aware shows the flight ending abruptly, just west of the russian border. this despite several warnings about the safety of the airspace over ukraine. first, warnings put out on april 3rd by the f.a.

the dutch carrier klm, air france, and the german airline lufthansa have also banned flights, and europe's air safety agency is urging others to do the same. israel insists there no actual threat to flights in out and of tel aviv. prime minister netanyahu has bked secretary of state kerry to help lift the flight ban, but in light of the malaysia airlines shoot-down, scott, airlines are far less inclined to fly into danger zones. >> pelley: still flying in the region is the israeli air force, bombing neighborhoods in gaza in the effort to stop rockets like those aimed at the airport. after 15 days of battle, 628 palestinians are dead and 3,720 wounded, nearly all civilians. barry petersen is in gaza. >> reporter: on the outskirts of gaza city, street after street of devastation and desolation. the israelis blasted it hard because they say rockets aimed at israel were fired from here. we had to hit the ground from incoming fire, and the buildings echoed with shooting from street-to-street fighting. this is now the ghost town of gaza, a very eerie, empty place. you can see the effect of the i

now diverting their planes around the eastern ukrainian airspace among them air france kalen and lufthansa europe's transport agency europe control has advised all e.u. carriers to avoid the area and following the tragedy leaders have been expressing their condolences to those affected r.t. speak to oliver is in berlin. you heard from german chancellor angela merkel she was given a press conference in which she said there needs to be a full investigation into exactly what caused this disaster she said that germany was willing to to send a team to ukraine to to help with that investigation to get to the bottom of exactly what happened but she also went on to say that this was an extremely serious act that the taken place she referred to the plane having being shot down and she said that those that are responsible must be brought to justice that's what the german chancellor saying that she did also express her extreme crieff and condolences for the families of the those that have been killed for germans were among those that have been on board this plane and she expressed particular condo in

are diverting their planes around eastern ukrainian airspace among them our air france k l n and lufthansa europe's transport agency europe control has advised all e.u. carriers to avoid the area and following the tragedy e.u. leaders have been expressing their condolences to those affected let's hear from marty's correspondent in berlin peter all ever. heard from german chancellor angela merkel she was given a press conference in which she said there needs to be a full investigation into exactly what caused this disaster she said that germany was willing to to send a team to ukraine to help with that investigation to get to the bottom of exactly what happened and she said that those that are responsible must be brought to justice should also express her extreme crieff and condolences for the families of the those that have been killed for germans were among those that have been on board this plane and she expressed particular condo interest to the people of the netherlands who of course will worst affected by this disaster but she's not the only. european leader that's been speaking about

planes around ukrainian airspace among them well you can see on the screen there are four air france lufthansa transit europe's transport agency euro control has advised all e.u. carriers to avoid ukraine's airspace more from berlin with artie's. we heard a short statement from german chancellor angela merkel in which she said she was shocked and expressed her condolences to the families of those who've been killed who are expecting a further statement from her in a few hours time that go into a little bit more depth we've heard from a colleague boyko in amsterdam the dutch prime minister has also been expressing his condolences the u.k. where nine people it seems were on that flight nine u.k. citizens david cameron the prime minister there held a meeting with senior government officials to decide what the next step would be and what they actually knew about what had happened and then the united kingdom went to the united nations and asked for a special set a special session of the security council now that session will take place in new york later on friday but what we are seeing though is an

but it seems to be that's not the case and we're getting information in now that that is in france lufthansa turkish airlines trans they're all routing planes the. the british transport official transport department saying that they're advising airlines to review it around the not flights already in the or as well they're being rerouted around the region too so if you're if you're listening in maybe you've got some relations on a flight or something it will be rerouted iran and eastern ukraine. all right we've also managed to speak to the deputy prime minister of the self-proclaimed jeanette's republic he denies allegations from kiev that anti government forces could be behind the disaster and says they lack the capability to shoot down a plane at such a high altitude let's take a listen. and . grandparents cannot bring down and only allowing your soul to two. thousand meters this is impossible for us to do you didn't know that and i would like to remind you three or four days ukraine. declared. its people of. russia. russia planes flying over this territory probably the mistook the spleen f

it includes lufthansa, another airliner in russia, and they are coming in as we speak, more and moreirliners. british airways says it does not traverse ukraine, but it does fly into kiev once a day. and it says that that is under review. i found this interesting. according to the head of the ukrainian airspace regulatory authority, he says that the malaysian airliner was flying normally without problems until it disappeared from radar. i'm not sure how he would know that unless he's just simply looking at the trajectory on the radar, but he says the airliner was not having any difficulties before it disappeared. and we did also hear from schiphol airport in amsterdam which says the families and friends of the people who were on board that flight have started now arriving in amsterdam at the airport and that authorities there are organizing all of them into an area for them to gather. they are still, they in amsterdam, still waiting on the passenger manifest which will likely, as we have said, have to come from malaysia airlines itself. >> tom, back up to one of the points you just ma

she brought leaders from many key companies, including the lufthansa,siemens, folks like him, airbus, and others. she was touring a volkswagen plant with the volkswagen chairman. she will be given full military honors, a welcome in beijing. she will meet with president xi jinping, who was in germany in march. from the european chamber of commerce suggest german companies are more optimistic about investments right now in china than some of germany's eu counterparts. there is rising cost, and there is credit. the percentage of businesses that plan to expand in china dropped to 57% from 86% last year. there is a little bit more pessimism, but there is a tight environment, and that these german exporters. it will be interesting, what the trading and investment climate is for german companies. they will have a press conference later today. they will be at the great hall of the people later on this morning. >> is this is one thing. does that influence some of the more sensitive issues that are going to be discussed? i think there will be some sensitive issues. fighting on the international

in fact, even right now, lufthansa, the german carrier still are not flying out of israel.o you explain that? they want to make money, those flights are pretty crowded. >> look, europe has never been shy about putting undue pressure on the nation of israel. and america and israel enjoy an unshakeable alliance. we've never had an administration demonstrate as much antagonism. the questions i ask come in the context of a global movement to divest and impose sanctions against israel that sadly, john kerry made comments that many took are encouraging the effort. and in that context the effect of the faa order was a blunder. now, i'm glad that the obama administration re-considered. but we should still acquire was this a political decision done from political motives or was it an independent agency? if it was only the faa they should easily be able to produce the experts and the written expert opinion before they issued the ban. >> reporter: here is what the state department spokesperson -- she will be joining us later this hour -- said about you and your statement. i'll play th

a couple of companies in europe, adidas and lufthansa mentioned ukraine and that's the first time that found its way in earnings stories. there are all sorts of reasons to take a step back today. so many people have been calling for a correction for weeks, calling for a drop all stop we've got almost three years without a 10% drop in the s&p 500 and there's been a lot of nervousness at these levels. tomorrow is the big test. these goods have been bought a lot this year. >> something else folks have been talking about -- the fed is always in the ground. we've had a measure of wages today that went up more than people anticipated and we will have some components of that in the jobs report tomorrow as well. are you hearing about that from people as well as the fed as an issue? >> talking to people, i get the sense the economy is ahead of where the fed is in terms of their rate hike schedule. --y've talked for a while janet yellen said six months after, and that is no longer the standard. >> they might have to move it up. >> and people are worried about that. when you get geopolitical head

air france, lufthansa. iag was down 3% yesterday. the funds of was down 2.3%.were saying as much as we might not like it, when you have difficult market like these, be surprised that markets are not lower. go to bloomberg.com to pick up that interview. let's have a look at some names that reported results this morning. volvo trucks, asia demand up 6%. european demand is where they saw a real plummet, down nearly 9%. a note.g industries ran that tells you everything you need to know in terms of the really a la of the of the economic recovery. ericsson, we have the year maker with second-quarter sales beating. you can sell as much product as you want. ericsson up 8.9%. finally, electrolux. most of their business is done in the kitchen. they beat in terms of numbers. usa demand will rise by around 4%. they are sticking with that. exchangewith foreign with a dramatic drop in terms of how much foreign exchange. by 75% goingl drop into the third quarter. >> i know a man that is doing up his kitchen. >> i know a lot about electrolux. >> he is called manus cranny. don'