the deal between general motors and psa group, psa group is not taking on the pensions deficit?sn't helped we have had zero interest rates for a long period of time which means bond yields are hopeless. we are living a lot longer, but there is an area of people sticking their head in the sands like ostriches, it isn't going away. even somebody like bt, a well run company, £5 billion black hole. incredible. david buik, thank you. thank you for all your information as usual on the markets. we will see you again tomorrow. bye—bye. it is looking unsettled this week. we will see spells of wet and windy weather pushing in off the atlantic. today, it is looking like it will be an improving picture into the afternoon. increasing amounts of sunshine, but there will be scattered showers. the wet start across the south—west is because of this area of low pressure. it is an improving picture across the british isles. so that wet start across the south—west clearing to sunshine and showers. and some rain across northern areas will clear to leave a scattering of showers too. most of the showe

general motors is set to announce a deal to sell opel and vauxhall to psa group, the french company thatpeugeot and citroen. both companies are hosting a press conference in paris later this morning. buying gm's loss—making european operations will make psa the continent's second—biggest car maker, after volkswagen and ahead of french rival renault, and it will be a giant. last year psa and gm europe sold a combined a5 million vehicles, and posted revenues of 71.6 billion euro. but the deal has already raised fears in the uk the jobs of 4,500 workers at vauxhall‘s plants could be under threat. in germany, where two thirds of 0pel‘s 38,000 staff are based, the government has been seeking reassurances the jobs are safe. 0pel had hoped to return to profitability by 2016, but the slide in the value of sterling following the eu referendum last june contributed to its 257 million euro annual loss. with me isjom holder, editorial director of autocar. nice to see you. it is a very anticipated press conference. what do you think they will tell us?” think we won't learn a great deal this morning o

the gob most analysts predict that psa group will have to cut some of its factories in a few years. ut a beauty parade for existing factories, which will be ranked according to efficiency. once existing agreements expire, we can expect cutbacks. the problem with cutting back capacity in europe is that it cutting back capacity in europe is thatitis cutting back capacity in europe is that it is deeply, deeply political. governments have stakes in car companies, the french and has a 13% sta ke companies, the french and has a 13% stake in psa group, the german government has a stake in volkswagen, at least the state of lower saxony does. any attempt to close a factory kicks up a political storm, that the problem. what will be the gossip from geneva? geneva is a wonderful car show, car makers come out with real exotica. i have seen a wonderful one this morning, iam much have seen a wonderful one this morning, i am much how to pronounce it but it is produced by a singaporean company called vander electrics, developed in conjunction with the williams formula i team. it is electric car, i ha

. >> n >> nancy also spoke to the leader of the psa group and asked if the carmaker bit more off than it can chew with the gm deal. >> we can show them what we have done with psa over the last four years. everybody is looking around, seeing the results, and we are trusting people. because we trust people and succeeded in our own turnaround, we may have a chance to turn opel into a great company. we believe our group will be reinforced by this german brand that will be totally complimentary with our french brands, hence a lot of excitement but also a lot of work. hard work ahead to make sure we can unleash the potential of opel. >> as part of that potential you're targeting a european champion. part of the penalty of being that big is you often catch the ire of politicians. a lot of concern surrounding anticipated job cuts you may have to make to meet your significant synergies, the cost saving goals. how will you meet those targets without job cuts? >> there is something striking. nobody cared about the fact that for more than ten years opel was making red ink. for everybody it was ok

as you've been hearing, general motors will sell opel and vauxhall to psa group, the french company thats new export potential and that he sees an opportunity in having inside the uk some manufacturing plants in case of a hard brexit scenario. he also said the future of vauxhall workers in the uk would depend on their performance. i trust my vauxhall employees in the uk. i trust them. i know that they are skilled, i know they are dedicated, i know they are committed and i trust they will be in a very good position by working in a constructive and open manner with the psa group colleagues to improve the performance. as long as we improve the performance and we become the best, there is no risk they should fear. joining me now is professor christian stadler, of warwick business an expert in strategic management and the car industry. so quite a positive message from mr taveres — but there will have to some restructuring won't there as the opel vauxhaull business has been lossmaking under general motors? absolutely. it made sense to be friendly at that point in time but i would be surprised

across europe, the psa group has 14 production sites with 49,000 psa group has 14 production sites with is buying gm europe, known as opel, including its place outside the uk, and 38,000 employees. it includes plants in luton and ellesmere port and their fought a half—dozen staff. gm europe is not turned a profit since 1999. but its new owners have cast laich this will change all that. —— 4,500. this is a result of a four—year joint—venture with peugeot, and devastated that because that is can be found. what about job security at vauxhall‘s plans? the boss has promised to ensure that existing production guarantees. he said after that the workers' future were in their hands. i trust my vauxhall employees in the uk. i trust them. i know that they are skilled. i know that they are dedicated. i know that they are committed. and i trust that they are committed. and i trust that they will be in a very good position by working in a constructive and open manner. as long as we improve the performance and become the best, there is no risk they should feel. here at els airport, the vauxhall last r

i him here with the ceo of the psa group. thank you for joining us. me ask first about the purchase of opel and vauxhall. were there any more options? was any other brand considered? >> it is just a big opportunity for the psa group to become a european automotive champion. that is not exist in this region of the world. the discussion was very intense, very constructive. i would say there were no other options, but this one was a win-win approach for both general motors and for the psa group. having this perspective of a european automotive champion, i think we could quickly find convergence in the talks. i trust our employees from opel have the potential to make this company a great company and we will of course, leverage everything we have learned from the psa group and propose this to the opel team to make sure they have the right references and benchmarks. we will together doing so, unleash the potential of opel. matt: of course, the sister in britain,all does this make brexit more stressful, or does it offer a solution in case of a hard brexit? >

he's given the sale of vauxhall to the psa group the thumbs up. psa own peugeot and citroen.d standard life have agreed the terms for a merger. the move will create one of the uk's largest fund managers, overseeing assets worth £660 billion. and returning to cars, car sales registered their first february fall in six years according to new monthly data from society of motor manufacturers and traders. analysts predict that the market could be feeling the pinch from early signs of a consumer spending slowdown in the british economy. february is typically one of the quietest months of the year for the car market. the french company that owns peugeot and citroen has struck a £1.9bn deal to buy general motors' european unit, including vauxhall. the group's chief executive carlos tavares said that the future of vauxhall workers in the uk would depend on their performance. well general motors is an american company, joining me now from the new york stock exchange is michelle fleury. michelle, do you think gm will be pleased to have psa off their books? we're going to go to a clip no

good luck to psa group. these guys not the healthiest company in the world.uch better than they were a few years ago but they were on death's doorstep not too long ago. now they can try to see if they can make ago of it with opel and box haul. >> 4 1/2% dividend yield. you're supposed to own it regardless of what's going on in europe. >> true. good point. >> phil, thanks, man. >> you bet. >> thanks for sticking around for the conversation as well. nobody else -- i know you don't like gm. >> i'm stick -- >> where is this stock at the beginning of the year? >> geez, i want to say 34. i might have that wrong. maybe the chart will come up here. i'm not far off. >> up 10% year to date. >> i had a very good first quarter earnings report. you've had february sales come in that were very nice. idea of peak autos is done, off the table. we're fine. >>> breaking news with steve liesman, senior economics reporter. steve? >> thanks very much, scott. fed vice chair you stan fischer speaking here at the boost school of u.s. monetary policy conference. making no comments on

he's given the sale of vauxhall to the psa group the thumbs—up. psa own peugeot and citroen. returning to cars — car sales registered their first february fall in six years, according to new monthly data from society of motor manufacturers and traders. analysts predict that the market could be feeling the pinch from early signs of a consumer spending slowdown in the british economy. february is typically one of the quietest months of the year for the car market. fund managers aberdeen asset management and standard life have agreed terms for an all—share merger. now, fund managers are individuals or companies that mange money on behalf of others. the merger of these two will create one of the uk's largest fund managers, overseeing assets worth £660 billion. the two companies employ about 9,000 people. the companies said the deal was subject to a number of conditions, including shareholder approval. our scotland business editor douglas fraser is at douglas fraser was at the standard life headquarters earlier today. this morning, confirmation of the proposed deal which is being

yesterday, general motors sold its european businesses to the psa group — that's the company which owns. the deal highlights the gulf in profitability either side of the atlantic and it's a problem that persists across much of the industry. in 2016, ford announced a profit margin of 9.7% in north america. this compares to just 4.2% in europe. it's a similar story for fiat—chrysler which has profit margins of 7.4% and 2.5% respectively. cars are an important export for many of europe's biggest economies. given that national elections are due to take place in france and germany later this year, european governments will be keen to keep their domestic car industries ticking over. christian stadler is a professor of strategic management at warwick business school, and specialises in the car industry. good morning. given what i havejust said, why is there such a gulf between the profit margin in north america and that seen in europe? two factors. labour cost is higher in europe and there is still quite capacity in the european market which keeps down margins. the issue of currency has played

psa group parent of france.e or a peugeot is by general motors and vauxhall brand for $2.3 billion. the deal when the combined company into second place in europe behind volkswagen print this sale is general motors to get rid of the money-losing division. opel has not been profitable since the 1990s. tsn have to close factories, cut jobs. gm selling european financial service to psa. train to the company trying to turn patron of past problems. during the supervisory board meeting yesterday plans to raise capital. the overhaul business structure. the $7.2 billion settlement for salÉ and toxic securities. the string of scandals has impacted the ballot sheet since 2012. nicole: more than 73,000 chickens live to be killed after strain of bird flu detected a chicken burger fact that a tennessee farm. the farm is tracked to a u.s. food giant to the u.s. food giant tyson foods and the chickens have to be slaughtered. this is the first confirmed case of avian influenza in commercial poultry in the united states this yea

it has been like that for vauxhall within the opel group will be like that within the psa group.. south korea has asked for a swift deployment of us made missile defence systems due to be installed later this year. a zoo where almost 500 animals died in four years has been refused a new licence by councillors in cumbria. south lakes safari zoo was heavily criticised by inspectors who found that a tortoise had been electrocuted — and healthy lion cubs were put down because there was nowhere to put them. in 2013 a keeper there was mauled to death by a tiger. the zoo's owner has 28 days to appeal. our correspondent danny savage has been following the story. councillors have been meeting here all morning to decide whether or not to grant a licence to the south lakes safari zoo which is about 45 miles from here, a popular tourist attraction. people who visit it have mainly posted positive reviews of it in the past. but it had a very damning inspection by government appointed vets in january this year and reading their report, well over 130 pages long, it is no surprise, really that th

. >> i want to go -- >> anyway, breaking news, it's official general motors is selling to the psa group for about $2.3 million. the maker of peugeot. this is behind volkswagen. this complete s gm's exit. >> nike. i used to say it. adidas. >> i agree. i think i think adidas is actually correct. >> anyway, you're very nice. a warm way. it's such a warmer tone than my regular co-anchor does. >>> moving on, breaking news this morning, deutsche bank announcing $8.5 million. telling cnbc it was the right time to go to the market. deutsche bank announcing a change to its executive team, naming two deputy ceos to work alongside criyan. >> i said i'm 150% in. >> it's an effort to turn its business around. they will left the minority stake in its business and finance its global markets and banging divisions. they also designed to scrap the sale of its unit and instead integrate it into its german retail group. as you can see, shares down about 6%le we're going to talk in detail with jeff with more of that interview with mr. cryan in a couple of minutes. this is big news. 6% is huge but i think ov

the good news is that the psa group, which owns peugeot and citroen, has promised not to cut anyjobs 020, and the future after that is uncertain. psa's boss carlo tavares has already had talks on the phone with the pm theresa may. there were reassuring words but no promises were made. vauxhall is set to become the second—biggest carmaker after vw. french government has a 14% in this and there are fears french jobs will come ahead of british and german ones. the unite secretary, len mccluskey, has been involved in talks with the psa bosses. he called vauxhall a jewel within the crown of gm's european business. last autumn, the government did a deal to keep nissan in sunderland. the company was promised free access to european markets whatever happened after brexit. psa may well seek similar assurances. what more do we know about this? we know that the press have been invited to a press conference with the groups involved in this story. officially, there are no comments from either company. there was nothing they could add or see on or off the record. this negotiation has been very brie

the good news is that the psa group, which owns peugeot and citroen, has promised not to cut anyjobs 20, and the future after that is uncertain. psa's boss carlo tavares has already had talks on the phone with the pm theresa may. there were reassuring words but no promises were made. vauxhall is set to become the second—biggest carmaker after vw. french government has a 14% in this and there are fears french jobs will come ahead of british and german ones. the unite secretary, len mccluskey, has been involved in talks with the psa bosses. he called vauxhall a jewel within the crown of gm's european business. last autumn, the government did a deal to keep nissan in sunderland. the company was promised free access to european markets whatever happened after brexit. psa may well seek similar assurances. companies that use confusing small print to mislead customers face a crackdown in next week's budget. the chancellor will announce plans to help people avoid so—called "subscription traps" by making sure customers are notified before a payment is taken. joe lynam reports. hands up how man

its opal and boxall brands and the european arm of its financial division to the french automaker psa group. separately, the largest u.s. automaker said it would lay off more than a thousand workers in its assembly plant in michigan in may as it moves production of the vehicle to tennessee. shares of gm were a fraction at 37.91. meantime, delta cut its first quarter operating margin forecast because of rising costs. also delta sees the key metric of passenger revenue per available seat mile as flat instead of the 2% rise previously expected. shares fell 275% to 48.85. deutsche bank is lose to raise $8.5 billion and sell part of its assets management business in a major strategic overall. it comes as the bank posted a net loss of $2 billion in the fourth quarter following a settlement with the u.s. government over housing prices. >> we were listen to go some feedback from the market where there was sll concerns which were to some extent shared by our clients and our counterparts bank shares fell 't hav nearly 4%, 1861. >>> a strain of bird flu was found in a tennessee farm contracted by tyso

we look under the hood at the $2.2 billion sale of gm to psa group.were going in the wrong direction. deutsche bank unveils a raft of new measures. are they finally putting the past into the past? this is bloomberg. ♪ anna: a very warm welcome to "bloomberg daybreak: europe." this is a live shot of new york, 1:49 in the morning. 6:49 in the morning in london. when we get to the u.s. trading day, we will be a little lackluster, down 0.3%. we have that interview at 8:15 london time the john cryan. let's get to the latest bloomberg business flash with juliette saly. reporter: thank you. insurer is ingest talks to acquire aberdeen asset management. under the terms of the potential deal standard life shareholders would own 66.7% of the combined group. this would great when of europe's biggest fund managers come over thing 606 the billion pounds. managers, overseeing 660 billion pounds. y. lee is alleged to have emitted perjury. asked by thes not president to provide financial support. responding to this morning's announcement, samsung said the company had

the deal has been subject to three weeks of talks between general motors and the psa group.s with special educational needs and disabilities. ministers say the money can be spent on specialised classrooms and resources but not on general day—to—day school budgets. it comes as many local councils complain of a crisis in school funding. 0ne teaching union has described the new money as just a drop in the ocean but the government insists it will make a difference. i know of one head teacher who spoke to me who said just a small and mount of capital investment can have a huge impact. it could be putting a lift into the school, it could be putting a kitchen, enhancing specialism in the classroom, so these are really important parts of investing in those children who have every right to have a great education as any other. later we'll ask a special education needs charity how pupils may benefit from the money, and whether it goes far enough to address the challenges facing schools. that's at 7:10am. sir bruce forsyth has reportedly returned home, after spending five nights in inte

general motors is set to announce a deal to sell 0pel and vauxhall to psa group, the french company thatoth companies are hosting a press conference in paris later this morning. buying gm's loss—making european operations will make psa the continent's second—biggest carmaker, after volkswagen and ahead of french rival renault, and it will be a giant. last year, psa and gm europe sold a combined 11.3 million vehicles, and posted revenues of 71.6 billion euro. but the deal has already raised fears in the uk the jobs of 11,500 workers at vauxhall‘s plants could be under threat. in germany, where two thirds of 0pel‘s 38,000 staff are based, the government has been seeking reassurances the jobs are safe. 0pel had hoped to return to profitability by 2016, but the slide in the value of sterling following the eu referendum last june contributed to its 257 million euro annual loss. we will talk about that with a car expert to give you a sense of the effect on those companies. china's national people's congress convened this weekend in beijing's great hall of the people. the 3,000—strong event is

yesterday, general motors sold its european businesses to the psa group — that's the company which ownss the gulf in profitability either side of the atlantic and it's a problem that persists across much of the industry. in 2016, ford announced a profit margin of 9.7% in north america. this compares to just 4.2% in europe. it's a similar story for fiat—chrysler which has profit margins of 7.4% and 2.5% respectively. cars are an important export for many of europe's biggest economies. given that national elections are due to take place in france and germany later this year, european governments will be keen to keep their domestic car industries ticking over. but becoming more profitable. we will have lots for you from the geneva motor show. brazil is releasing its gdp numbers for 2016 today and it's set to be a disaster, quite frankly. officials are likely to confirm that brazil's economy has been shrinking for the past 2a months. but the government believes the recession may be near the end and that the economy could be already growing in this first quarter of 2017. to ordinary brazilia

--geot pays psa group creating europe's second-largest carmaker.e will look under the hood of that deal next. this is bloomberg. ♪ francine: this morning we had confirmation that psa group creates europe's second-largest carmaker. it is a bid to compete better in the saturated market. it will pay 1.3 billion euros. we spoke to gm president. >> our perspective has been that europe has been from a customer preference perspective has and we need toat find a different way to get more scale locally here in order to be more successful in the business going forward. it has been 1999 since you turned a profit. team has not tremendous job over the last four or five years. we would have been profitable last year absent brexit. we have a great product portfolio. significantly improved the bottom line. we need to get much more scale here. it take to get you to execute those warrants? >> the reason we wanted the warrants is to participate in what we think will be significant synergies. the team has done a great job over the last few years. be extremely successf

across europe, the psa group has 14 production sites with 139,000 workers. as 0pel, with its eight plants outside the uk and 38,500 employees. the deal includes vauxhall‘s plants in luton and ellesmere port and their 4,500 staff. here at ellesmere port, the vauxhall astra has been rolling off the production line since the 1980s. to secure the future of the site, unions know the new french owners must commit to a new vehicle for the plant in the coming year. a message to psa, or indeed, general motors before it. it needs to be clear. if they want to sell cars in the united kingdom, they're going to have to build cars in the united kingdom. that's unite‘s position and we will fight tooth and nail to make sure that happens. the conversations that i and the prime minister have had, both with gm and psa, tell me that they intend to safeguard the plants, honour their commitments and look to increase the performance and the sales of cars. so, we want to hold them to those commitments. uk plants are known to be amongst the most productive and efficient in the world.

we're not talking about shutting down plants because if you look at the situation, look at the psa group8%. it's lower at vauxhall. it's 82%, so first, it's not a dramatic number, 82% is not a dramatic number, second, for many years opel vauxhall could not export cars outside of europe. that was something that general motors didn't want them to do. psa is going to unleash this potential. we are going to open the gate as soon as the opel vauxhall models are using the psa ide, they will be able to export but the quality need to be superb and the cost needs to be competitive, hence the opportunity is to improve quality and costs, export, be more competitive to gather by sharing best practice. this is how we should look at things. over in the us, the trump administration is expected to begin rolling back stringent federal regulations on vehicle pollution that contribute to global warning. joining us now from the floor of the new york stock exchange is our business correspondent michelle fleury. we know president trump has been vocal about climate change, how has this manifested itself and wh

across europe the psa group has 14 production sites with 139,000 workers.gm europe, known as 0pal, for £1.9 billion including its eight plants outside the uk and 38,500 employees. the deal includes vauxhall‘s plants in luton and ellesmere port and their 4500 luton and ellesmere port and their a500 staff. luton and ellesmere port and their 4500 staff. gm luton and ellesmere port and their a500 staff. gm europe have turned a profit since 1999 but its new owners hope cars like this will change all that. the crosland x is the result ofa that. the crosland x is the result of a four—yearjoint that. the crosland x is the result of a four—year joint venture with peugeot demonstrating that big cost savings could be found. but what aboutjob savings could be found. but what about job security at vauxhall‘s plants? peugeot's boss carlos tava res has plants? peugeot's boss carlos tavares has promised to honour existing production guarantees. but today he said that after that workers' futures were in their own hands. i trust my vauxhall employees in the uk. i trust them.

trust that they will be in a very good position by working in a constructive and open manner with psa groupe performance. as long as we improve the performance and we become the best, there is no risk they should fear. a500 people work at two uk plants. they make astras here at ellesmere port on merseyside. although the current deal runs out in four years‘ time. a deal to make vivaro vans just outside london in luton runs out a few years after that. 30,000 people also rely on those factories. people working in car showrooms for example. the new combined group actually has 2a factories across europe, all of them now fighting for survival. i'm asking the government to make certain they are at the table because the french and the german governments will be. batting for our british plants and making certain that peugeot are committed to us. the conversations i and the prime minister have had both with gm and psa tell me that they intend to safeguard the plants, honour their commitments, and look to increase the performance and the sales of cars. so we want to hold them to those commitments but

if you look at the situation and the psa group today, our capacity is 98%.296, first, capacity is 9896. it is much lower at vauxhall. it is 8296, first, it is not a dramatic number, 82% is not dramatic. second, for many, many yea rs dramatic. second, for many, many years opel—vauxhall could not export ca rs years opel—vauxhall could not export cars outside of europe. that was something general motors didn't want them to do. psa is going to unleash this potential but if you want to export we need to be cost competitive, your quality needs to be absolutely superb and your costs need to be competitive, hence the opportunity we have in front of us is improved quality, improved cost, export, be more competitive and altogether by sharing best practice. this is the way that we should look at things. next on outside source we must turn to a bbc investigation into how facebook is still failing to re m ove into how facebook is still failing to remove inappropriate and sexualised images of children. you may have already seen this on the bbc website. here's the story on

in business we will take a look at the deal that makes french group psa the second-biggest carmaker in europe behind volkswagen. and thousands of women take to the streets of london ahead of this weeks women's day. more on the march led by singer annie lenin and human rights nox coming up. first our top story live from paris. ♪ we will start in france where the man who many had hoped would replace scandal plagued presidential candidate franaois fillon has ruled himself out of the race. alain juppe is a former prime minister who lost the conservative primary last year to fillon. since then fillon has gone from being the front runner to being dogged by allegations he gave his wife and grown children high-paying fake jobs. haver members of his party called for him to step aside and a number of agents have quit his campaign. the scandal began on january in the a small headline weekly newspaper. it alleged that francois fillon's wife penelope had been paid over half a million euros despite never doing any work. the prosecutor opened an inquiry into the misuse of public funds. the affair was

. >> general motors has agreed to sell its long struggling european opel units to france's psa group,ued at 2.2 billion euros. the second-largest carmaker. >> a lot of discussion with the unions and government. this is mary from gm. exiting europe, finally. this puts them at number two. that is what he gets. scale, size, and brand. he will deliver synergies at 2 billion euros in 2026. what about gm? share buybacks are on the agenda. that is what gm plans to do. >> being that europe is from a regulatory perspective and customer preference perspective, has diverged from our global operations. as a result we need to find a way to get more scale locally here to make investments necessary to be successful. >> having the opportunity to is aage two iconic brands big opportunity for a company like ours. to a larger group of customers. if we have brexit, it is much better the source from inside. let's turn to the latest on a brexit. sterling falling to a seven-week low against the dollar. theresa may faces a new setback in the house of lords. what happens today? what amendments will be added?

remains attractive after he questioned the automaker's move to sell european operations to france's psa group. in 2015, marky on a sent a letter to gm to consider a merger saying it could lead to billions of dollars in cost savings. gm cto project did the proposal and a spokesman said yesterday that a deal still makes no sense for gm customers, shareholders or employees. lauren: chinese telecommunication giant has agreed to pay a heavy fine and plead guilty to selling u.s. technology to iran in violation of u.s. sanctions good commerce secretary wilbur ross said on fox business the settlement includes measures that will keep the company in line. >> it is 1,190,000,000, a portion of which is being held back from being paid right now as an incentive for their continued complaint over the next seven years to very rigorous auditing and other measures the gernment will be taking to make sure that they fly straight. lauren: another $300 million hub that during the seven-year compliance. coming up, wikileaks publishes thousands of documents and revealed how the cia had to do computer smartphones and

psa group sealed a deal for general motors business, they agreed to pay $2.2 for opal unit in a deal that will create a new european car giant and see gm's exit from the region. we spoke to the ceo of general motors mary barra and asked her whether threat of u.s. border tacks might have played a role in the carmaker getting rid of its european units. >> we still have cadillac and we have chevrolet iconic brands in europe and we will continue to do so. we'll also be participating with psa through the warren ownership. we're looking for future collaboration in europe, so i don't see it that way at all. i see huge opportunity as we continue to work together and also very importantly for the iconic chevrolet brand products as well as cadillac. >> how did you make sure psa and opal are not going to be competitors on u.s. and chinese market, for example. >> we compete in some markets today already. this is really focused on synergies we found in europe, across the board. they were really the two companies fit together quite nicely. we understand there will be a pint that may occur. we're a

. >>> psa group could announce a deal to buy opel from general motors in the next few days. they are getting closer to an agreement on pension liabilities on gm's european division. the report stated that the announcement could come as early as monday. speaking to cnbc late last month, the ceo of psa, carlos tavares said it was too early to set out a potential time frame of the tie-up. >> i would like to be respectful of my partners, recognizing we are still under discussion to eventually conclude this deal. i want to make it clear to stakeholders that the deal is not done. we are discussing. as you know, there was a leak last week. we are talking about this matter today because there was that leak. so i would prefer not to answer precisely your question. my apologies for that because we are discussing. as long as the discussions are to the concluded it would be premature. >> nancy will speak to carlos tavares at the geneva motor show, that's happening on tuesday. by all means get involved. many of you did yesterday. keep your e-mails coming through, streetsignseurope@cnbc.c

trust that they will be in a very good position by working in a constructive and open manner with psa group improve performance. as long as we improve the performance and we become the best, there is no risk they should fear. a500 people work at two uk plants. they make astras here at ellesmere port on merseyside. although the current deal runs out in four years' time. a deal to make vivaro vans just outside london in luton runs out a few years after that. 30,000 people also rely on those factories. people working in car showrooms for example. the new combined group actually has 2a factories across europe, all of them now fighting for survival. i'm asking the government to make certain they are at the table because the french and the german governments will be. batting for our british plants and making certain that peugeot are committed to us. the conversations i and the prime minister have had both with gm and psa tell me that they intend to safeguard the plants, honour their commitments, and look to increase the performance and the sales of cars. so we want to hold them to those commitmen

across europe, the psa group has 1a production sites with 139,000 workers.the deal includes vauxhall‘s plants in luton and ellesmere port and their 11,500 staff. here at ellesmere port, the vauxhall astra has been rolling off the production line since the 1980s. to secure the future of the site, unions know the new french owners must commit to a new vehicle for the plant in the coming year. a message to psa, or indeed, general motors before it. it needs to be clear. if they want to sell cars in the united kingdom, they're going to have to build cars in the united kingdom. that's unite's position and we will fight tooth and nail to make sure that happens. the conversations that i and the prime minister have had, both with gm and psa, tell me that they intend to safeguard the plants, honour their commitments and look to increase the performance and the sales of cars. so, we want to hold them to those commitments. uk plants are known to be amongst the most productive and efficient in the world. but it's what goes into the vehicles, which are built in our plants

the ceo of volkswagen has given bloomberg his reaction to psa groups takeover of hotel.e past, we had competition from opel and have been dealing with it. we always respected them as competitors and will respect that new combination. this is not going to stop us, to look at ourselves and implement our plans going forward. we are very confident. juliette: we will be talking to 8:00 a.m. u.k.at time. that is your bloomberg flash. its look at markets. the nikkei closed down by about 2/10 of 1%. the topic in yen, very unchanged. testskorea's missile taken in their stride. we saw one of the best performers in the region, the one -- you on also strong. the fx 200 closing higher by a third of 1%. looking at stocks in detail we have been watching. rally continuing for a second session. china life insurance company by 18% year to date. korea pacific, a standout in the session. we have seen a huge influx of foreign investment coming into south korea. stocks 34.8 percent according to data obtained by bloomberg. also energy stocks getting a rally. this is a malaysian oil producer. i

general motors has agreed to sell its long struggling european opel and vauxhall units to france's psa group at 2.2 billion euros. the deal will create europe's second-largest carmaker. >> the deal is done. they took a lot of discussion with unions and government. this is mary barra's swansong from gm. exiting europe, finally. this puts carlos -- at number two. that is what he gets. scale, size, and brand. he is set to deliver synergies billionillion euros between now and 2026. what about gm? ka-ching. share buybacks are on the agenda. that is what gm intends to do with the proceeds from this divestment. >> being that europe is from a regulatory perspective and customer preference perspective, has divert somewhat from the risk of our global operations. as a result we need to find a way to get more scale locally here so we can make the investments necessary to be successful in the business going forward. >> i think having the opportunity to leverage two iconic brands like opel and vauxhall is a big opportunity for a company like ours. we can and get to a larger group of customers. if we have

speaking of deals, psa group, they have sealed a deal to buy gm's european business and will be payingon euros for the unit. it will create a massive car giant and the second largest in europe. and it will also be able to see gm's exit from the region and from what has been a loss-making arena to be in here over the last couple of years. gm operating under vauxhall-opel in europe. deutsche bank has by far been the biggest story this morning. they are raising $8.5 billion this morning and overhauling their business as well. this is the third capital raising exercise in four years. they are including 2 billion euros worth of asset sales and reversing their decision to sell the bank community they announced earlier this year. a big change for that stock around 6% this morning. >> louisa bojesen, thank you so much. >>> several countries near yemen are already in crisis. south sudan and somalia are already in drought and a food crisis due to war. >> reporter: a region shattered by war now aching with hunger. >> we don't have enough to eat. we are in the war. and we have many problems. >> re

across europe, the psa group has 11! production sites with 139,000 workers. europe, known as opel, with its eight plants outside the uk and 38,500 employees. the deal includes vauxhall‘s plants in luton and ellesmere port and their 11,500 staff. here at ellesmere port, the vauxhall astra has been rolling off the production line since the 1980s. to secure the future of the site, unions know the new french owners must commit to a new vehicle for the plant in the coming year. a message to psa, or indeed, general motors before it. it needs to be clear. if they want to sell cars in the united kingdom, they're going to have to build cars in the united kingdom. that's unite's position and we will fight tooth and nail to make sure that happens. the conversations that i and the prime minister have had, both with gm and psa, tell me that they intend to safeguard the plants, honour their commitments and look to increase the performance and the sales of cars. so, we want to hold them to those commitments. uk plants are known to be amongst the most productive and efficien

psa group would create the second largest automaker in europe.e's largest advertising company has had a slow start to the year and doesn't expecting's to get better. -- the chairman said low inflation, technical logical focus on costsa are having an adverse effect on spending. revenue is expected to grow 2% in 2017. investors gave snapchat a vote of confidence. the company was valued at more than $28 million. snap started with a mobile app to send disappearing photo messages. that is your bloomberg business flash. david: we will stay on the subject. a big start for snap. we are joined by the cofounder. inestigating -- investing huffington post and others. you actually thought they were a $17, a lot ofd at people thought it was rich. it is true. i looked at the monetization of the company. david: what kind of numbers are they going to have to put up to justify this? i think one thing to analyze here is the average revenue per daily active user. this in days revenue, not quarterly or annual revenue. for a company like snapchat, when you think about

so what we have to do, by bringing 0pel, vauxhall, the psa group together is to become better, and wee company. the energy giant e.on says it will increase prices for gas and electricity customers by an average of 8.8% from next month. households who only use electricity will see a rise of 13.8% on average from the 26th april. it says it's the first such rise in three years and blamed the hike on government social and environmental schemes. thai surgeons have performed emergency surgery on a turtle after they discovered it had eaten nearly a thousand coins. the operation on the sea turtle is thought to have been the first of its kind and could have saved her life. caroline davies reports. the next time you throw a coin into waterfor luck, take a look at who you might be throwing it at. this turtle was found floating strangely in her pond. vets weren't sure what was wrong until they carried out a 3d scan and found this — a pile of old coins she had eaten sitting in her stomach. it was so large it wasn't only stopping her swimming properly but had caused the underside of her shell to cr

now gm overnight agreeing torni get rid of this unit by by selling it to psa group the maker.rench companyren compete with volkswagen then market leader in the regionregin and like we said this helps gmlm get rid of this money losinghisg business. business. >> amazing. europe opalopal and puget still popular brands. let's talk about -- you hateu h to hear -- when you hiredu hired about bird flu first you thinklu about safety bu ft these farmerm it's devastating.ev >> reporter: i know exact.er: iw there's a tennessee farmnesseem that's been quarantined along ag with 30 farms in the area. the tennessee farm where thiser strain of bird flu was justs foods the largest chickengesthin producer in the u.s. u we are talking about bird flu for the first time this yearrsti righs t now. if you recall about two yearst s ago major strain, 50 millionin,n birds had to be slaughtered asag a result.a rult. pushed egg prices -- i buy organic eggs eight dollars at da carton right now.gh when this happened they wenthapp up top record highs as prices ps are still expensive andnsiv because of this

general motors has agreed to sell the long struggling european opel unit to the psa group in a transactionalued at 2.2 billion euros. this will create europe's second-largest carmaker. with us now is the head of global automotive research. thanks for the time this morning. the question is, if this is a good asset for general motors to get rid of, why is this a good up?t for peugeot to pick >> the hope. is that opal is in better hands with the european partners. with ald be easier than partner who is making completely different cars in the u.s., which is far less expensive. they have been a fantastic job of streamlining the business and the hope is he can do the same. u.s.,having come from the i know that used car lots in america are on the point of overflowing here. this is not great news for growth in new car sales. how does the european situation look, concerning used cars and the possibility of new car growth? >> europe is at peak profitability. it is a very healthy situation. we see car pricing, the average discounts. to give you a reference point, in germany, they are at 11.5%, a very

general motors selling its european business to france's psa group, price tag $2.3 billion.m has not made money in europe for almost two decades. the deal enables gm to get rid of the money losing legate while also giving psa a leg up on the competition with market leader volkswagon. >>> a strain of bird flu detected in a chicken breeder flock on a tennessee farm contracted to tyson foods. more than 73,000 birds will be slaughtered to stop the virus from entering the flu system. the last major outbreak two years ago pushed egg prices to record highs. >>> growing expectations the federal reserve will raise interest rates next week when they meet. the dow rose 2 points but still above 21,000. investors this week waiting for the february jobs report. that's due out february morning. >>> brand new coffee infused wine could help out. it's described as full bodied with a blueberry flavor. so popular, it's sold out online. that's business in new york. >>> 8:54. new rules for your safety. next, requiring fingerprinting and background checks for uber and lyft drivers and the possible