it will be an all-terrain vehicle and truly a rolls-royce.n the subject of brexit, this is something we talk about in europe, and you are very familiar with all of the issues at stake. how involved are you in pushing your message? what does rolls-royce want to see from the brexit negotiations? so far, our business is -- i would call it -- normal. business is usual in the u.k. we haven't seen any dropouts yet. our major interest, knowing that 90% of our cars are exported -- i am very much interested in good trade relations between the u.k. and the rest of the world, so for that reason, that is my big wish. it's something we definitely need for being an excellent conditions regarding trade. anna: and if it's not possible to be members of the single market, what would be the second best option for you? let's wait and see what the outcome is. we are fully respecting the vote of the public in the u.k. i can't tell you to be honest what happens. the article wasn't even called, and for that reason, let's wait and see. clearly on my wish list is prop

now they've discussed this with rolls royce.p with a solution but in the meantime last month ana had to cancel over a dozen flights and they say it's going to take them up until the end of 2019 to fix all their planes. >> all right. what are they doing then to fix this issue here, more specifically, chris? >> well, that's the thing. at the moment rolls royce has got a new blade that it's going to bring out the start of next year. in the meantime, ana is replacing blades on engines where they've had them for more than a couple years with the current type. so they'll replace it once and then have to replace it again next year when they get new blades. and, remember, a.n.a. is the biggest operator of 787's. they have 50 in their fleet. that's 100 engines they have to work on. rishaad: what about precedence? has this happened before? what are are the chances of compensation? >> there is always a problem with new airplanes. the 787 is no exception. they got the plane more than three years late. and within just a year of flying it the

in the absence of bentley and rolls-royce, ferrari is here. they said, they oh it to their fans and it's important as far as image is concerned and they have been doing paris shows ever since the company started to they consider it very important to their imagebuilding. >> thank you for that update from the paris motor show. the bank will be hit by 1.1 billion euro's in cost as it tries to restructure it business. the german lender is hoping revenues reached 10.3 billion by 2020. the bank is still partly owned by the german state and will be informing investors about the new strategy outlook next week. some news coming out of the music streaming space. according to the financial times, spotify is an advanced talks to acquire its berlin-based rival sound cloud. the deal could turn on the pressure with american rivals like apple music. music streaming services have been struggling to turn a profit. genie: a word about republican presidential nominee donald trump, who has a new company he's going after. offirst he accused ford shipping jobs out o

rolls royce has agreed to design a new blade and ship it to a.n.a.tarting from january next year. >> that's part of the fix. what is the strategy to try to overcome this? >> well, this isn't a.n.a.'s first problem with the 787. the first customer for the plane and also the largest operator of the plane with 50 of them. back in 2011 they got their first one. it was delayed by more than three years. then a couple years later they had problems with the lithium ion batteries and it was a global shutdown of flights. a.n.a. couldn't fly their planes for four months. and now we're going to another problem. this time a.n.a. has done well at handling it. they canceled just over a dozen flights last month and so far this month they've kept them to zero for the first half and sources are telling us the second half they'll put on some spare planes and triple 7's and try and keep the cancellations to zero again for the second half of this month. >> what are the chances of compensation in a case like this? is there a precedent in something similar? >> yes. well, t

shares and rolls-royce down by .7%. swiss gdp, the economy secondating in the quarter, rising by .6%. expanding from a revised .3% in the prior quarter. -- ant the eurozone economy that has really rebounded. the abolition of the euro sent the franc into a tailspin. the comparison between swiss gdp and euro area gdp run back to 2013. julie hyman has the details. julie: u.s. stocks are still trying to figure out direction here. at last check, we saw all three major averages had turned into the red. it makes market today. -- a mixed market today. it is now the 41st straight session we have not seen a move of at least one person in the s&p 500. that's 1% in the s&p 500. to july 8, go back that's the last time we saw a 1% move in the s&p. the fixed today still stands below 13. we saw a bit of an uptick in activity today following that nonmanufacturing report, the measure of the services economy. here is the drop we had in yield after those numbers came out. the banks have been really trading in tandem with those bond yields

rolls-royce has been hurt by falling demand for engines and for servicing business jet turbines.ng prices in london rebounded this month after four straight months of decline. the average asking price was up 2% from august. that is according to a real estate website. still, prices in the most expensive districts are down 12% on the current year. that is the bloomberg business flash. francine: thank you so much. brexit,ote for you go round to your most important allies to try to .eassure investors the london mayor says that negotiate access to the single market is crucial if the city is to remain a financial hub. >> london is a powerhouse for the uk. the good news is even if you were in favor of brexit, if you want to be on the right side of history, it is in your interest to get the right deal with the eu. if we don't, it could lead to jobs leaving london. francine: before we go to our heeemed guest here, was convincing? this sounds like something that as london mayor, you have to say. did he believe it? obvious was the there. he was selling the city, as you need to do. he was ch

ana make them compensation from rolls-royce with regard to dreamliners. is changing the turbine blades on all rolls-royce engines. let's check into the markets. asian stocks looking mixed. melbourne isw from the market analyst from ing. seen --ly that we have there's relief rally following the payroll numbers, how much risk are we setting up for? i think that is the issue. vote, wake of the brexit when you are using that as an input into the discount rate that you price long-duration assets such as equities, that in stocksive surge globally. now we are seeing a reversal of that. u.k. yields are heading up. we have also been seeing some interesting moves on the japanese bond market. a lot of speculation moving around what the boj may announce later this month and whether that will lead to less pressure on the longer end of the yield curve. worry foractually a the massive rally we have seen in equities in the most highly overvalued equity markets like the s&p 500. haidi: you have talked about the post-brings it bounce. it has been surprising. what does that

on the corporate front, rolls-royce says it will cut another 200 jobs as it looks to save some 58 million euros by the end of the year, also boosting investor sentiment with rising oil prices which were up over 2%. >> a large part of the volatility is due to an oversupply in production and in u.s. shale gas. >> this is nothing new, we have been talking about this for a long time, but we are seeing that rise in oil prices and still hard times for many in the oil industry. you to one takes oilfield in north dakota. >> by 6:00 in the morning, the 10th agency in willison is already open. dozens of workers come with the hopes of landing a job for the day, and one of the oil companies. the economic slowdown has cut work opportunities by 40% and left many jobseekers empty-handed, especially those who are less qualified, like heather, a single mother without a degree. she left arkansas for what you thought would be a land of promise, but she has not worked a single day in the past month. >> the work is not here, like it used to be during the boom. , ias not here at that time guess i did not, the

forairlines is asking rolls-royce for compensation for rolls-royce engines.hts after finding effective turbines. the conversation maybe in a discounted future purchases. americans may be selling labor day today, but they will be doing it the next your burger or two. ground beef rices are the lowest since 2011. an expensive meet may be on the menu for a while -- meat maybe on the menu for a while. that is the bloomberg flash. armstrong is still with us now. we want to focus on oil. we started the conversation earlier. just to be clear, you are not short wti, is a specific etf you're talking about. etf, you if you buy an get the s&p 500. with an oil etf, every much the future expires and have to buy the next month. oil does a thing called can tangle -- contangle. you end up with less oil. if you bought a barrel of oil on december 31, the etf, you would only have three quarters of a barrel left. etf's underperform stock prices. it's a very high carry strategy. guy: let's be specific about will have got here. is what you're suggesting. give us -- walk us through

rolls-royce holdings shares of by 1.3% today.t important a new cfo and pushed by the embattled company to restructure its top management layers. he is now the cfo of daily mail. he will take his new post next succeed --ecede -- to succeed david smith. regional airplanes, business jets, other white bodied aircraft. ericsson today shares of by 2.7%. erickson says its home country won't be excluded for the worldwide drive to cut costs and save on costs. late onwed a report wednesday. a newspaper in sweden says the company is considering are owing -- firing 3000 employees in sweden. the company ousted the chief executive in july after revenue and profits sagged and an array of investigations at the swedish maker of wireless networking equipment led to lower shareholder -- higher shareholder, they were up by 2.7% today. the french power utility cutting the upper end of its 2016 profit forecast citing safety checks that kept its nuclear power plant shut for longer than expected. shares of by 1/5 of 1% today. 90 minutes into the trading

adjustment, deutsche bank at 120, hsbc a stunning 110, if you get currency adjustment, you will have a rolls-royceng others. david: if you can have currency adjustment without secondary, yes. but how you do that, you just put up a wonderful chart showing the history of 1992. what happened in the next two years? we had the crisis of worldwide currency crisis. we had banking stocks -- you can't do it. herewe had stanley fischer a few days ago. when you look at what bankers are doing right now on the september 1, are you like focusedat deutsche bank on future financial and stability. ? david: i think the gap between riskless and risk, the why bore isead thing going on now restating the price of risk. there are now two categories of things. you have riskless under percent level one assets. you get paid no matter what, and you have the rest. then you have the divide bill. tom: -- jonathan: people maybe not want to live in frankfurt. they are try to persuade people to live in poland. people don't want to move along. so there is a kind of embedded infrastructure it will take a long time to unwind. and wh

rolls-royce has been cut by falling demand for turbine engines. this is bloomberg.it is now 49 days until the election. a new poll shows donald trump pulling even with hillary clinton. the two candidates present very different views of the country. a lot of it has to do with economics. with us now is barclays head of public policy research. onhas done extensive work what lies behind the topline polling numbers. let's start with a chart you created. back to 1992, we are essentially graph -- flat in household growth. >> the new numbers show a bubble of 5.2% in median household income, but you have seen a household income. you have seen the rise of the far right and talk on the far left. some people feel they are being left behind and it manifests itself in globalization and trade. >> absolutely. folks often side with those who support trump or sanders on the left who don't feel better off today. you have a terrific chart on the country just question -- question. the bright green is worse off than 50 years ago. clinton supporters think we are much better off. the popul

. >>> and rolls royce says they are going to cut 200 more jobs after the company cut more jobs last may. most of the layoffs will be happening in the aircraft business to support airbus and boeing. >>> out east, audi is suspending stefan knirsch after allegations show he was aware of cheating devices during commission tests. he became head of the development after his predecessor resigned due to his involvement in the same scandal. this after more than 80 institutional investors joined a lawsuit against vw on friday. nancy spoke to the head of global automotive research group who has a birating on volkswagen and asked if the latest legal action was already priced in. take a listen. >> i think it is mostly priced in. i'm less concerned regarding the accusations because we have seen in the volkswagen case it is very difficult to prove in germany that a company has deliberately misinformed vessels. >> nancy is joining us now onset along with jeremy marshal, chief officer at bentam europe. jeremy, thank you for joining us. what exactly are the allegations? >> essentially that the company kn

now the rolls-royce of beers. ambev and sabmiller. anheuser-busch will prevail. sabmiller no longer hearing that. south african brewery they use that on the african continent. this will give the new company access to africa. it will go forward as anheuser-busch inbev. this bud's for you. they will spin off other brews other people like in tap. they had a record intraday today on that stock. bottoms-up. me i take a line in google. david: $100 billion. a lot of money in beer. >>> meanwhile the huge jump in oil based on opec agreeing to cut oil production but, scott, aren't those agreements usually broken? >> yeah they are. you know what? i think they're taking a page from the fed's book. like a committee of cain any balls. we'll see if they come through. -- cannibals. there is a little, i think the market got wrong footed. they weren't expecting anything. we have seen short builds recently. that squeezed the market out. it was good for a 5% bump. with the economy not doing so well folks are ready to sell this thing as it approaches 50. david: don't bet on it. melis

tooline: the airways plan have conversations with rolls-royce with more than a dozen flights last month finding broken turbines on three aircraft, according to people familiar with the plan. a formal conversation has not been presented yet, but it could be purchases of parts. global news 24 hours a day powered by thousands of journalists in more than 120 countries. i'm caroline hyde. this is bloomberg. anna: thank you. let's get to our first guest this morning. we are joined by philip shore. a good morning to you. i'm looking at the oil price, up this hour. 45.231. we had a fairly decent day yesterday. the oil price had a bit of a song and dance as we heard from the russians and saudis. how substantial the you think the commitment they made was yesterday to at least coordinate their efforts? philip: good morning. well, we have seen oil prices slipped well below the $50 a barrel level. i think some news potentially on wa going to happen -- we're pretty cynical of a comply agreement actually causing a freeze in oil production globally. we might get temporary shocks which helps the markets

. >>> some stocks to watch today, rolls royce is cutting 200 more management jobs as part of the ongoing restructuring. the engine maker scrapped the heads of five units of the nuclear, marine and power systems. the stock is up in london 2%. >>> novartis says a new drug to treat chronic heart failure can contribute to a higher quality of life. they launched the drug last week but failed to disappoint. >>> and airbus tells "the financial times" that their plan is offsetting expensive delays to aircraft programs and minimizing losses on the a-380 super jumbo jet. it could include job cuts. >>> twitter is being suled for misleading investors last year. a twitter investor is suing the company for the early false and misleading statements. their stock took a turn for the worst. the current cfo and ceo both claimed in the suit. they claim that they made false statements causing the stock to be inflated. it's been on the rise lately, 4% higher on what was considered a successful rollout of an nfl football game with millions of people tuning in on twitter. >>> speaking of that entertainment news

, can currency adjustment, deutsche bank at 110, if you get currency adjustment, cannot benefit rolls-royceif you have currency adjustment without secondary effects, yes. but how? you put up a wonderful chart that showed history in 1992. what happened in the next two years? the peso crisis, a worldwide currency crisis, you cannot do it. tom: earlier, and stan fisher a few days ago, and when you look at what bankers are doing on september 1, are you focused on future financial instability? i think so. i think volatilities are rising , thehe gap between risks libor spread going on now, is restating the price of risk. there are 2 categories of things. 100% levelskless, one assets. .ou get paid no matter what then you have the rest. you have a divide. guy: i will speak up for the u.k. people may not want to live in frankfurt or warsaw. the poles are trying to persuade the bankers to live in poland. people are not going to move along. there is an of the structure story that will take a long time to unwind. who is to say that a decent deal cannot be done? why does it have to be doom and the clone

smith who isavid leaving rolls-royce.he company has been cutting costs because of the falling demand for engines powering jets. that is your bloomberg business flash. francine: let's take a look at brexit and the battle over london's role and euro clearing. london could be stripped of its ability to clear euro done nominated slumps after britain leaves the eu. the clearing of $570 billion of euro. let's get more from john the tree -- john detrixhe from berlin. what does it mean for the rest of the health of the city of london? john: that is the key question. the way people seem to be looking at this, our colleague gavin was talking to an executive about this. people are looking closely at what changes after brexit. what happens after that starting gun goes off and brexit is triggered? it looks like this business could be one of the first things to move outside of london, at least that is the way some of the top executives are looking at that. they are making contingency plans, they are figuring out what to do. people are

if you get currency adjustments, can that benefit rolls-royce among others? can have currency adjustment without secondary effects, yes. but how do you do that? a wonderful up chart showing the history from 1992. what happens within the next two years? a have the peso crisis and worldwide currency crisis and a banking shock. tom: when you look at what bankers are doing now on this are you focused on future financial instability? >> i think so and i think volatilities are rising in the gap between riskless and risk is the libor spread and that is restating the price of risk. are now two categories of things thanks to basel three. level oneiskless, assess where you get paid no matter what and you have a divide going on. 0 tom: let's bring in guy johnson. >> people may not want to live in frankfurt and may not want to live in warsaw. trying to persuade bankers to live in poland but simply to the people will not simply move. there is an embedded infrastructure story that i think take a long time to unwind. who is to say that a decent deal cannot be done? why does

maz: and here comes my dad from iran, and he shows up and he buys a rolls-royce.ng: oh, man! maz: and i was like, "what are you doing, man? it's, like, you know, ruining my childhood." may: wow. so was that tough for you, though, to--to--i mean, that must have been-- maz: it was very tough 'cause when you're a kid, you're trying to blend in. you don't want to stand out as a different kid, right? may: and then, when you're trying to blend in... maz: yeah. may: to a new culture, there's got to be that clash sometimes. maz: yeah, and i really liked to push that envelope. like, even in my standup sometimes, i like to kind of show the hypocrisy. like, when i did my book, uh, "i'm not a terrorist, but i play one on tv"... may: yeah. maz: and on the cover of the book, i intentionally put on a palestinian keffiyeh, the head gear, and i'm holding, like, a wile e. coyote bomb, and i've got an expression on my face like, "how did i end up here?" may: yeah. maz: and i'm trying to make fun of how hollywood mixes us up all together. i was trying to make fun of that. now, irania

maz: and here comes my dad from iran, and he shows up and he buys a rolls-royce.oh, man! maz: and i was like, "what are you doing, man? it's, like, you know, ruining my childhood." may: wow. so was that tough for you, though, to--to--i mean, that must have been-- maz: it was very tough 'cause when you're a kid, you're trying to blend in. you don't want to stand out as a different kid, right? may: and then, when you're trying to blend in... maz: yeah. may: to a new culture, there's got to be that clash sometimes. maz: yeah, and i really liked to push that envelope. like, even in my standup sometimes, i like to kind of show the hypocrisy. like, when i did my book, uh, "i'm not a terrorist, but i play one on tv"... may: yeah. maz: and on the cover of the book, i intentionally put on a palestinian keffiyeh, the head gear, and i'm holding, like, a wile e. coyote bomb, and i've got an expression on my face like, "how did i end up here?" may: yeah. maz: and i'm trying to make fun of how hollywood mixes us up all together. i was trying to make fun of that. now, iranians a