what will siemens look like in 170 years? know it's almost impossible, but how much do you have to innovate and how much do you have to stay close to your roots? joe: there will be in the next 170 years, the change will be about 170 times likely to accelerate products and solutions and what we sell will likely become more intangible. there will be much more integration necessary to put more bits and pieces and products together with platforms and solutions. so i hope the world will have become a much, much better world than we have today. ♪ francine: few companies have gone through as many technological and industrial revolutions as siemens, but rather than just survive them, it has helped lead them with the advent of electricity to wireless communications. but now now siemens is investing billions in making sure its future is digital. from giant gas turbines in asia that use artificial intelligence to reduce emissions, to train carriages in the u.s. that harness big data to find problems before they occur. are you concerned

fifty percent cut of the new siemens joe k.'s appraise the merger at a press conference in paris on wednesday the message of. european spirit is alive to struggle european companies leading the way. joining forces and country together in a meaningful way and that's a powerful message. message. which are matched by populist. nationalism social and political rights even after the new firm is founded the pressure on the europeans will increase siemens had considered canadian company. but the deal was reportedly derailed by bomb body a's shaky finances now the competition authorities need to approve the deal. walters who through this now i'm joined in this studio by you again and that from the business and in frankfurt off financial correspondent quantified booze and welcome to you both york firstly to you these companies were bitter rival so why are they getting together well they're joining forces in order to match their chinese rival to fend off their chinese rival the state owned c r r c company is by far the biggest manufacture

fifty percent cut of the new siemens c. k.'s appraise the merger was a press conference in paris on wednesday the message of that measure is the european spirit is a life to struggle european companies are leading the way. industry by joining forces and come together in a meaningful way and that's a powerful message a powerful message in times which are matched by populism by nationalism. even after the new firm is founded the pressure on the europeans will increase siemens had considered canadian company. but the deal was reportedly de railed by bomba da's shaky finances now the competition also richie's need to approve the deal. to take on these from b.w. business let's start with the job cuts it doesn't sound like they're going to be many but they could be some at some stage yes well unions right now back the merger because workers in germany and france have been given a four year job guarantee however at the press conference men are just already said that jobs will be slashed eventually especially administrative jobs an

fifty percent cut of the new siemens joe k.'s appraise the merger with a press conference in paris on wednesday the message of. the european spirit is a life to struggle european companies leading the way. by joining forces and come together in a meaningful way and that's a powerful message a powerful message in times which are matched by population by nationalism social and political rights even after the new firm is founded the pressure on the europeans will increase siemens had considered canadian company. but the deal was reportedly derailed by bomb body a's shaky finances now the competition authorities need to approve the deal. well to talk through this now i'm joined in the studio by you again annette from the business and in frankfurt off financial correspondent quantified booze and welcome to you both york firstly to you these companies were bitter rival so why are they getting together well they're joining forces in order to match their chinese rival to fend off their chinese rival the state on c r r c company is by fa

the canadian who's on the rebound well joe kayser the man behind siemens has made up his mind. the fusion between siemens and alstom is on track to create a new european giant in the train building business. in the near future the german i.c.e. and the french t.g.v. will come from a single manufacturer siemens wants to bring its entire train division in return for a fifty percent cut of the new firm which will be based in paris but they're not doing it entirely of their own free will you know. the real construction in the signposting market is in a state of advanced consolidation the chinese group c. r. c. is today bigger than alstom siemens and can it is a combined the next step of this chinese group is in all likelihood continental europe where c r r c could rely on a purchase of a european manufacturers. even after the new firm is founded the pressure on the europeans will increase siemens has considered canadian company body a but the deal was reportedly derailed by bumb body is shaky finances however if the competition authorities aren't all aboard the big european deal wi

keep an eye on siemens. stories are mainly macro , what janet yellen has to say on the homicide, so we are anticipating a little bit of a move with the dollar. that will have an invocation at the margin. the oil stocks, isn't it, matt? especially after what we saw yesterday. take a look here at this chart in the bloomberg, g 9299. the white is the price of oil right now. 52. is wti, crude at the green in stockpiles in the u.s.. you can see them come down pretty drastically as the price rises. guy: absolutely. here is the market and the open. ftse 100 tracking back up towards the 73 level this morning. it will be interesting to see the driving factor behind that. expecting similar performances elsewhere around europe as well. we will see the cac and the dax open up as well. the dollar is a big factor into the mix today. the oil story is not to be ignored. we get data later on today, and there will be a tliv on your bloomberg. follow the release of those numbers. let us find out what else is happening. manus c

will come from a single manufacturer siemens wants to bring its entire train division in return for a fifty percent cut of the new firm which will be based in paris but they're not doing it entirely of their own free will they're not. sure the real construction and signposting market is in a state of advanced consolidation the chinese group c. r. c. is today bigger than alstom siemens and can it is bomb body a combined the next step of this chinese group is in all likelihood continental europe where c.r.c. could rely on a purchase of a european manufacturers. even after the new firm is founded the pressure on the europeans will increase siemens has considered canadian company body a but the deal was reportedly derailed by a bum body is shaky finances now the competition authorities need to get on board otherwise the big european deal could hit the buffers prosecutors in the united states have charged ten people including an added us executive where the bribery and fraud that's following a widespread investigation into corruption in college basketball prosecutors accuse the manager of

daniel: siemens has confirmed that they are joining this french company. the government is privately encouraging the deal that is a change of tact. the focus is no longer on protecting french business by creating a european powerhouse. competition from abroad is fierce. >> siemens and -- they are trying to create a new train building business. they come from a single manufacturer. siemens wants to bring its entire train division and return -- in return for a 50% cut of the firm they are not doing it entirely of their own free well free will it is in a state of advanced consolidation. the chinese group crrc -- thnext step is probably continental europe where crrc could rely on a purchase of a manufacturer. even after the new firm was founded, the pressure on the europeans will increase, siemens has considered a canadian company but it was ruined by the shaky finances. the big european deal will hit the buffers. >> prosecutors in the united states have charged 10 people, including an ad executive with bribery and fraud. that is following a widespread investi

even after the new firm is founded the pressure on the europeans will increase siemens had considered canadian company. but the deal was reportedly de railed. shaky finances now the competition authorities need to approve the deal. well to talk through this now i'm joined in the studio by you again and that from the business and in frankfurt off financial correspondent quantified booze and welcome to you both us firstly to you these companies were bitter rival so why are they getting together well they're joining forces in order to match their chinese rival to fend off their chinese rival the state owned c r r c company is by far the biggest manufacturer or in the world and they are going global recently they have gone they have won contracts in britain and in the czech republic and you've got to remember up until two thousand and seven china had to rely on foreign high speed trains they bought them from europe from japan and then they told those companies listen if you want to continue to sell of the your trains here you have to manufacture them here and to put it nicely that way the

fifty percent cut of the new siemens k.'s appraise the merger at a press conference in paris on wednesday the message of. the european spirit is a life to struggle european companies leading the way. by joining forces and country together in a meaningful way and that's a powerful message a powerful message in times which are matched by populist. nationalism social and political rights even after the new firm is founded the pressure on the europeans will increase siemens had considered canadian company. but the deal was reportedly de railed by bomb body a's shaky finances now the competition also richie's needs to approve the deal. we asked our financial correspondent in frankfurt conrad who is in if this is a marriage of equals and more importantly if zealand's will stay on board with is still considering its track record on mergers. of course this talk of marriage of equals tries to conceal somewhat that they are not perfectly equal why. was the first company in europe to construct and produce high speed trains the famous t

will come from a single manufacturer siemens wants to bring its entire train division in return for a fifty percent cut of the new firm which will be based in paris but they're not doing it entirely of their own free will. the real construction and signposting market is in a state of advanced consolidation the chinese group c. r. c. is today bigger than alstom siemens and can it is bomb body a combined the next step of this chinese group is in all likelihood continental europe where c.r.c. could rely on a purchase of a european manufacturers. even after the new firm is founded the pressure on the europeans will increase siemens has considered canadian company body a but the deal was reportedly derailed by bomb body is shaky finances however if the competition authorities aren't all aboard the big european deal will hit the buffers. well joining us now from frankfurt central train station is our financial correspondent clinic on who's in it good to see what does this mean if travel is on the continent is trains and the railway system experiencing or in a sense in european travel. yes o

siemens having a decent rally, 2% to the good alstom 5.5%.esponding positively to what could be a reduction of costs in the sector i'm yet to see and hear much about what will happen on the jobs front that's something we will pore over the french government has given its blessing >> we are not looking at yesterday's world. we're looking to the future. we see a chinese giant being created with a turnover of 24 billion euros that decided to conquer markets in europe and elsewhere. faced with this, we must be united some might think europeans have to be divided to resist europe and chinese competition, we think we need to be united >>> how united will they be? two men know more than anyone. we'll speak to them on cnbc, first on cnbc. joe kaeser, siemens ceo, and henri lafarge, so stay tuned for that >>> french president emanuel macron laid out his plan for a stronger european union urging eshg u lead eu leaders to be bold against the threat of populism he pushed for great universiyuun fighting terrorism >> only the eurozone with a strong interna

winter is here with us yes siemens a stock skittering all over the place phil over the last few days siemens is looking for a match made in heaven but that's a love triangle will the german engineering company pick out stem the french with a heart for super fast trains or bombarding the canadian who's on the rebound well joe kayser the man behind siemens has made up his mind. the fusion between siemens and now storm is on track to create a new european giant in the train building business. in the near future the german i.c.e. and the french t.g.v. will come from a single manufacturer siemens wants to bring its entire train division in return for a fifty percent cut of the new firm which will be based in paris but they're not doing it entirely of their own free will they're not. sure the real construction and signposting market is in a state of advanced consolidation the chinese group c. r. c. is today bigger than alstom siemens and can it is a combined the next step of this chinese group is in all likelihood continental europe where c.r.c. could rely on a purchase of a european manuf

siemens kayser praised the merger at a press conference in paris on wednesday the message of. european spirit is alive to struggle european companies leading the way. by joining forces and come together in a meaningful way and that's a powerful message. machine times which are matched by populism by nationalism. their social and political rights even after the new firm is founded the pressure on the europeans will increase siemens had considered canadian company bomb but the deal was reportedly de railed by a bomb body is shaky finances now the competition or storage fees need to approve the deal. back to feel well and an exclusive report from somalia i thank you ben yes the government has been struggling with the jihadist insurgency for years with international support efforts to defeat the al shabaab militia have picked up this year but the fighting is also there to more hardship for civilians there were reports of sandra pets as well and young for the shots and this exclusive report about people already devastated by almost three decades of civil war. but battle means to su

and alstom siemens is likely to get a rail deal with alstom rather than bombardier this as they look to face a global expansion drive by china's crrc >>> straight back to politics, angela merkel has begun the task of trying to build a coalition government after a fourth term as chancellor. a jamaica coalition remains the top option but talks could be tough as one party said they would not agree to a tie up at any price. merkel also kept the door open to a rerun of the grand coalition with the center-left s spd. >> translator: we will look to start discussions with the spd and the greens i believe it's important that germany gets a good, stable government i heard what the spd said about going into opposition, yet we should stay in contact. >>> angela merkel struck a note of caution ahead of emanuel macron's speech on reforms merkel said she wanted to see countries become more competitive. macron hoped to work closely with merkel on reforms, but the election forced the chancellor to strike a much more moderate tone let's talk about this with len grabe taylor yesterday we did see some s

europe is soon to have a new giant in the train building business germany's siemens agreed tuesday to merge its real operations with french train maker alstom german i c e n french t.g.v. high speed trains were. then come from a single manufacturer that move was prompted by increasing pressure from chinese competition. cit was a chinese group c r c c is today bigger than alstom and kind of combined. pushing it up the next step for c r c c is in all likelihood continental europe where it could rely on a purchase of a european manufacturer. will be the chinese rival is already the world's leading maker of train engines that combined siemens and alstom group will speed into second place. just a merger of the lead to a more balanced killers for for instance ultimate strong enough to. the middle and south americas humans as. well as the china europe and the united states the portfolio. excellent match. german labor union see the move as an opportunity while their french counterparts fear job losses the merger is still subject to approval from the trust authorities. the results of last sund

will be the chinese rival is already the world's leading maker of train engines the combined siemens and alstom group will speed into second place. as the nature of the lead to a more balanced killers footprint for instance also from a strong enough for the. middle and south america as human just. because the china europe and the united states the portfolio. excellent match. german labor union see the move as an opportunity while their french counterparts fear job losses the merger is still subject to approval from trust authorities. the results of last sunday's general election in germany have shocked many business leaders a strong showing by the far right party means forming a coalition government among the other parties will be difficult. as guns and chide and what's important for us irrespective of the party politics is that it doesn't take too long to conclude the coalition talks and the talks will be difficult but they have to agree on a forward looking program of. germany's industrial lobby group is hoping for advantage as the political cards are reshuffled it is now calling f

talk about how they're siemens look at emerson because it's a german based company siemens is i think it's german and the advantage of tax is it just puts us at a competitive disadvantage and again it's a psychology as well as the reality it's not just the truth of the payment it's the psychology of the economy they were unfair footing that i think can make a big difference all right marshall you say that you know you and i have talked about the money isn't really that much money isn't really being kept offshore a lot of it's here but what about jobs apples in ireland paying one percent aren't those jobs that we could have here. well you know the five countries that you put brought out there that's very interesting because ireland has the lowest corporate tax rate as you pointed out and ireland's unemployment rate is substantially higher than germany's employment unemployment rate i think germany is pretty close to full employment economy it's about five and have six percent right now ireland still and in double digits and it's been a huge it was in a huge recession for a number of ye

fifty percent cut of the new siemens. praised the merger with a press conference in paris on wednesday the message of. the european spirit is a life to struggle european companies are leading the way. industry by joining forces and come together in a meaningful way and that's a powerful message a powerful message in times which are matched by populist by nationalism social and political rights even after the new firm is founded the pressure on the europeans will increase siemens had considered canadian company. but the deal was reportedly by bomb body a's shaky finances now the competition also richie's needs to approve the deal. and let's get some analysis from craig bellamy not at a one day in london craig is this a fair split would you say. i think it's as far as we were going to get i think there was a clear point that both countries both companies wanted to make you can they've said it themselves this is a merger of equals this is an opportunity for the two countries to come together to work together sheth acknowledg

siemens wants to bring its entire train division in return for a fifty percent cut of the new firm the message of. european spirit is alive to struggle european companies leading the way in a mobile industry joining forces come together in a meaningful way and that's a powerful message the new company will not only manufacture trains but will also produce digital components like rail management systems this could give it a major advantage over competition from china. the need to expertise a need for software expertise digital expertise is huge and the communication of the two companies will we created undisputed leader i think on this demand particularly. workers have been given a four year employment guarantee so unions are backing the merger with now it just has to succeed and that's the challenge for both siemens in the new firm to create new businesses new areas of business which will enable jobs to be secured beyond those four years no easy undertaking the company has already announced that cuts will be made to long term administrative jobs after all the new firm wants to reduce e

theow to the reaction of merger of alstom and siemens. >> a german company would take a majority stake, which means france's tvg trains would be built by a foreign company. the ceo would still be french. the new company has promised to keep french jobs save for four years, but workers are still worried. the french finance minister believes it's a good deal. >> we have some very strong guarantees for the preservation of wrench jobs, guarantees for governance and leadership, therantees for quarters and stock listings, but most of all, guarantees that all of. 's french sites will remain open. 5%.hares in all stem up slightly more muted reaction in frankfurt, where shares in siemens are outlined generally less than 2%. gains across london, paris, and frankfurt. >> the british and canadian governments have criticized decisions about trey terrace. 220%e u.s. wants to slap a tariff on aircraft made by bombarding ap washington says the company benefited from unfair state subsidies. a fifil ruling i is not due untl december. inbard ea's jets are made canada and ireland. are 4000 in northern ire

effectively allowing a potential merger with siemens to go through could mark a shift in the country's traditionally protectionist policies. it could also prove a token of good will towards germany at a time or emmanuel mccall hopes to convince berlin to back him vicious reforms of the euro zone. in his outline for stronger european integration we heard president michael repeating his calls for a common budget for the countries that use the single currency. he said the eurozone budget would help finance european projects and help stabilize the economy in few crises. money would come partly for national budgets and partly by imposing a single corporate tax band across the bloc. french presents it was crucial that ininternet jois in particular pay their fair share. fictitious. this tax is fair because it generates revenues in the country where the money was generated. and it simply recalls a fundamental element of our common and democratic philosophies. but there are common goods to finance and that all economic actors must contribute. that cannot be new economimc actors today who are ge

he was a young business graduate when he joined siemens in 1980, moving up the ranks and around the worldpany described by angela merkel as a flagship of the german economy. siemens truly powers modern life, making everything from turbines and health scanners and ovens and factory equipment. joining me, chief executive

about potentially joint venture ng the train construction departments of both companies but siemens opted to go with the french train maker instead that doesn't leave only out in the cold as a company it's really bad news for many workers here in germany constructing and building trains and train engines for bombards. who isn't in frankfurt speaking later thanks for now. well out of federal elections here in germany you might have thought campaign season was over but bryant apparently not certainly not at this point not yet anyway on a transfer on a macro is out campaigning yet again can you believe it this time ahead of a key vote in the state of lower saxony a snap elections been called there because a member of that state parliament switched parties bringing down lower saxony his coalition government. dramatical is back on the campaign trail already despite her narrow election victory on sunday or perhaps because of it she's out to reassure voters they're in good hands yet if ever to me i'm i'm waiting for some clear statements from her about the outcome of the vote since the far

now, jurgen, you run siemens here in the uk. have seen in the last especially five years as we are beginning to see more investment and focus on advanced manufacturing, and thatis focus on advanced manufacturing, and that is what this is all about. we are seeing morejobs that is what this is all about. we are seeing more jobs and that is what this is all about. we are seeing morejobs and more investment. you are a big business in the uk about as big and efforts for you. we have heard a lot about the northern powerhouse and people in the north of england are maybe wondering what it has meant for them in three years. so the electric gate of the railway, for example. there has been a u—turn on the stock —— electrification of the railway. well, we have seen investment in advanced materials, advanced manufacturing. we are beginning to see new jobs manufacturing. we are beginning to see newjobs being created. now, we need to create the northern powerhouse. this is now a journey for the next ten, 20 years. we want to create the fourth

ineals, siemens, the m&a space. nestle doing deals. in terms of m&a in the high-yield? michael: it is funny because m&a hasn't been the driver this year. the driver has been the need for forit and largely refinancing, but also investing in corporate's. m&a is a function of the total percentage of the volume deal in europe. volumes inlmost half 2014 and 2015. 20 17 should be remembered as the year of growth in europe, but not by m&a, which is not like the u.s.. we are bullish and i can see the volumes already picking up and m&a driven in 2018. manus: what extent is this to which your geography comes into play? you said you have to think about what size is in the back pocket? put that in reference of equity and potential leverage. christina: there are about 600 , about 2n dry powder trillion of buying power. financial sponsors are becoming increasingly important and will be a big driver in 2018. they have been a relatively strong performer in 2017, but have a tremendous amount of buying power. do the americans believe more in the growth

juliette: siemens and ahlstrom have agreed to merge their real businesses.hey are creating a european transportation giant aimed at countering competition from china. it will transit -- transfer its equipment in exchange for 50% stake in the enlarged company and will be joined by the -- we will be joined by the ceo of siemens. u.s. commerce department of slapped import duties 220% citing improper subsidies after a complaint by boeing. the termination threatens to a bent bombardier's plan to order jetliners. nike shares fell in late trading after quashing any hope of a quick turnaround that its ailing domestic operation. the sports were maker said it expects north american sales to decline following a 3% dip in the region last quarter. converse will also drop in the current period. that is your bloomberg business flash. anna: thank you. hitting record highs in the global growth recovery story. janet yellen says the fed should be -- not be too cautious on raising rates. manus: the fomc chair cautioned there is uncertainty around the forces keeping inflation lo

plus a mega merger between europe's biggest train maker france's strong and germany's siemens sink their years long rival ready to bite off a challenge from china. hello i'm terry martin thanks for being with us migration to europe might have slowed but the issue remains bitterly divisive among the members of the european union the nations on the front line that's mainly italy and greece are still desperately calling for migrants to be resettled elsewhere in the e.u. but some other member states have bluntly refused now the e.u. commission has come up with some recommendations to address those issues let's take a look now the e.u. commission wants to let fifty thousand refugees come legally to europe it's allowing border controls inside the schengen area to continue for a maximum of three years and it wants to send home economic migrants there migrants just looking for a better paid job let's listen to europe migration commissioner at the briefing in brussels with more than sixty five million displaced that around the world. we're going to stop showing solidarity so what's this desperate

france's refusal to exercise that option, potentially allowing a merger with siemens to go through, couldark a change in the country's typical protectionist policies. and it could also be a sign of goodwill. >> take a look at what is happening next in the markets. starting with the price of oil, which hits and over two-year peak yesterday in trading. today, down slightly. the brand crude international -- the brent crude trading under $59 a barrel. markets, seeing oil prices up significantly on yesterday, boosting oil producers. 100 not managing to peek into the green. next to china, where authorities disrupted access to a messaging service, whatsapp. >> users are unable to set up new accounts using chinese numbers and have reported difficulty in sending video and photos. this had previously happened in july for a period of several weeks. the apparent crackdown as the country prepares for the communist party conference, t to begins next month, choooose chinese leadersrship fr the next five years. is the latest of facebook's -- of three major social media companies have been fined for faili

matt: in talks with siemens in talks with combining their train businesses.iemens would move its rolling stock and signaling business for the company in exchange stake in that and large business. they are only in talks but watch these stocks, both of them move at the open. guy: will keep an eye on the german carmakers this morning, unilever as well. a lot of upgrades and downgrades in the markets, unilever buying its korean maker firm. unilever is tracking, down 1.5%. mick -- remember the active the story. -- the activists story. the way we expect stocks to open this morning, softer. ,ermany is going to drop less most of the other markets. this is bloomberg. ♪ is this a phone? or a little internet machine? it makes you wonder: shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit,

surprised by a lot of people watching the industry, siemens had been holding conversations with the frenchank you so much. tara joining us with the latest on these stories. we talked about gmm. manus: you have stocks in asia a little lower. the pine is kicking along. -- the pound is kicking along. we are cranking on gas against the new zealand dollar, up 1.25%. anna: negotiations set to take time in new zealand, so that is weighing on the currency generously. out on thehollowing social democrats. this is bloomberg. ♪ what did we do before phones? they save us from getting lost, getting hungry, and getting tired of places like this. phones changed everything - shouldn't the way pay for them change too? introducing xfinity mobile. where you can pay for data by the gig, and share it across all of your lines. no one else lets you do that. see how much you can save when you pay by the gig. xfinity mobile. it's a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. manus: germany's splintered parliament. parliament. merkel's win is tainted. election coverage.

this london taxi is powered by a one hundred ten kilowatt electric motor made by siemens. both swag and promise to push development of electric drive and an initial result appearing at the motor show is the road map the i.v. cries concept is the third of five all electric models most wagon plans to roll out starting in two thousand and twenty even so the w c e o mighty has made a doesn't see a complete extinction of the end. turnover combustion engine coming anytime soon. if you have nothing it tends to keep on developing internal combustion engine technology as a bridge to electric that's necessary to achieve our country's ambitious c o two reduction goals until emo billet he is well established itself. and considering that car buying decisions are generally driven by emotion there's the compact s.u.v. t. iraq which is joined by the new polo. time there would seem to be afflicted with a split personality as well smart has announced that the transition to electric drive will be complete by two thousand and twenty and both europe and america now smarts going a step further

as i say, hopefully we will re-establish that connection with siemens in just a moment and bring that back to you. before we do that, let's get headlines outside the business world. here's emma chandra. emma: first word news -- the candidate backed by president trump has lost the republican primary in alabama. incumbent senator luther strange was beaten by judge roy moore, a former chief justice of the alabama supreme court. moore's victory is a blow to trump and senate majority leader mitch mcconnell, who's efforts to boost his campaign failed. the trump administration says it's sending a flot i will aof ships and thousands more military personnel to puerto rico to address the growing human marijuana crisis caused by hurricane maria. large sections of the territory are still without adequate food, water, and fuel. meanwhile, the president helped raise an estimated $5 million for republicans last night. he attended a private dinner in new york with some of the biggest names in u.s. finance and real estate. there are about 150 people at the event. tickets cost a minimum of $35,000, a q

the maker of france's high speed trains is expected to announce merger with german industrial giant siemens today it's a huge and politically tricky deal that create a new european champion the board of partly state controls them is meeting to discuss the tie up with its german competitor who is of major industrial companies are extremely sensitive in france the supervisory board of munich based the minutes is also meeting to discuss the deal as well as further ventures with canada's bond group. or comrade another french german success story or just a whole lot of job cuts what is this well it's likely that this entails job cuts but given that the french government the french state is a big shareholder of storm it's likely that the two sides will want to prove that they can make this merger the european way you know in a consensus oriented way and. what's important also is that this entails a lot of opportunity in terms of strategic this could create the second largest rainmaker in the world after the chinese market leaders see r.r.c. that's a big thing conrad thank you. buba has struggled

siemens and the french company agreed to merge their rail business. to create this european transportation giant aimed at countering competition from china. itsens will transfer business making trade and transit cars and signaling equipment to alstom in exchange for a 50% stake in the enlarged company. 3 billion euros will remain based in the paris area. interesting comments from john mcdonnell yesterday. he said at a fringe event in brighton but if his party were in power we are going to be a radical government. labor has played out scenarios where if his party wins there is a run on the pound. corbyn agreed that the main opposition party should look at scenarios including a run on the pound and capital flight from britain in the eventuality that labor was to win the next election. it's interesting to see when we last saw runs on the pound. that was 1992 when the pound crashed. sterling fell by 4%. the last big sterling drop was the day after brexit when it fell by a record 8%. keep an eye on the french spanish 10-year spread. france is increasing it

siemens and the french rail company merging their companies, bringing together the former giantivalsimed at countering -- conquering china. shares are up 4.5%. sterling is down today for a fourth day, the worst stretch since august 8. investors looking at the progress of talks between the u.k. and the e.u., the fourth round of talks that end tomorrow . if you listen to donald tusk who was at downing street yesterday, we do not seem to be making enough progress to move on to october.ks after sterling is down for a fourth day, interesting comments from shadow -- he said that if his party were a power, they will be a radical government and should it when among those scenarios, there could be a run of the pound. i thought, let's look at when we last saw a runs of the pound, 1992 and the u.k. crashed on black wednesday. sterling fell by 4%. this is a longer decline. this is during the height of the financial crisis. a record declined the day after the brexit vote when sterling fell 8% against the dollar. getting back to saudi arabia, they will allow women to drive stateending as the only

now at a more than one-month low against the dollar the dollar getting a boost on yellen's remarks siemens agreeing to merge their rail operations. that joint venture seeks to fend off competition from a chinese rival looking to make inroads in europe both stocks gained on the news finnish utility fortum it, uniper and eon as hostile. we'll watch that in europe right now, weaker euro, which is helpful. >> we'll see if it does. let's get to sue herera. >> good morning, everyone. here is what's happening this hour quebec's premier calling 220 pars tariff imposed by u.s. on bombardier planes. claims they used subsidies boeing's stock has been moving higher on the news u.s. national guardsmen and military personnel assisting with relief efforts in puerto rico members of puerto rico national guard assisting police with security at gas stations on the island because of severe gas shortages. heavy winds fuel the fire in california the canyon fire, as it's called, has already scorched 2,000 acres an forced evacuation of 1500 residents. it's only about 5% contained a new poll from the university of