Bloombergs headquarters in london. We begin with the worlds biggest air show. Airbus dominated the firstday. The deals gave airbus an early lead. Could boeing be on the fight back for more announcements today. Todayy expect from them what can we expect from them today . Is it a banner waving dealmaking day . It could be to some extent. There will be something of a fight back from boeing. We can expect to see some big deals at boeing, in particular, with Leasing Companies. Look out for boc aviation. Valued in more than 9 billion. That is something on our radar. As cnbc is the company we have in our focus. We could see deals from both. Show in termshe of the numbers yesterday and with the announcement offering a new engine margin on an older aircraft. He is certainly one of the things we have been talking about here at the air show. Overcapacity is also a big scene. They have announced the markets they have issues. He thought it was really just a european legacy of carrier issues. That was what he thought was the problem for those types of businesses. Know you have been waiting to see him, but no news yet. No update on whether it will be here or not. I know you will search high and low. Comes, you will bring alive. Talk to me about the conversations he will have to day. You will have today. Absolutely. We will be talking to airbus. The coo of airbus. Well be asking all about the 350. T news on the a minister inance that will be an interesting type of currency. They have been doing 3d manufacturing. That is something we would like to talk to them about and using the industrial internet. And then we will talk to some leasing businesses later on in the day. Leasing companies that are going to be at the center of some of these big announcements, we suspect. Itll be great to be here on the arizona cycle. A Big Conversation is coming up, one of the highlights of my morning so far. I got to talk to the lead singer of iron maiden. He is also an angel investor. Pilot and hell be flying later on during the week. It is a very eclectic air show. We look forward to hearing what he had to say. Tech tuesday. Theyre planning the biggest nd of job cuts and five he in five years. Hans nichols joins me now. Give me a sense of the scale of these layouts. 5800 was what microsoft laid off in 2009. That was about a fifth of their workforce. They have absorbed 30,000 from nokia. The overall number, the number of positions, is going to be lower higher than 57,000. The percentage is lower. Statementhis missing july 10 and he talked about the importance of Cloud Computing and mobile devices. That is clearly the direction theyre going in. To reading some of them will be at the xbox division. It is headquartered in reading in the united kingdom. Could be some job cuts. Where trying to find out where these cuts are and how deep they will be. Software ag, this is a stock this is a colossal trade. A massive trade, rippling throughout the market right now. We had it this morning before the market even opened. The profit warning was dismal. One of the biggest drops in their history. It is an indication of just how volatile things are right now and how quickly things can turn on a little bit of news. We saw something similar about two months ago when lufthansa issued their traffic warning. Time whenle volatile there is hard news. Lets keep an eye on software ag. Lets turn our attention to the middle east. Israeli cabinet has approved a ceasefire proposed by egypt. Lets go to our middle east editor. I am looking at the news. I understand from your latest updates is that there is no question about hamas excepting this. What we have heard from a spokesman approved a ceasefire proposed by is ceae we reach an agreement is rejected. Ecting the ceasefire that there have been three rockets firing into israel over the last one or two hours since israel enacted the ceasefire. Unclear as to exactly what is going to happen. When i was here in 2012, and there was a conflict between wasel and hamas, it it sporadic fire. It would seem to suggest that to startnot ready firing rockets. Lets talk about the context of this ceasefire. John kerry is on his way, as we understand. What would this do for egypt. I have lost egypt was manage to broker the last ceasefire between them. Here is no love lost between he does seem to be wanting to get back involved. The change would change his perspective. He is now in as the man who orchestrated this coup against mohamed morsi. The man who resided over the it would change and to be more of a statesman. As a person who is trying to prevent the israels from gonda being. Radar . Wese is on our have been speaking to the president of catalonia. He wants scotland to vote in favor of independence as it would help catalonia a bit too bit. Separate a little if that happens, it would be [inaudible] the development of the negotiations between with the european union. In order to keep scotland at the reunion. One of the biggest losers on the stoxx 600 this morning. Threaten to seek immediate repayment of at least 100 youth pictures. That is not jeanclaude himself. To ers deciding whether some politicians are against his nomination. Will it be a close call . Things, dont lie on youre going to read. Details ahead. We will maintain a high degree of Monetary Policy. We will keep the key ecb Interest Rates at current levels for an extended. Of time. Period of time. We stand ready to take action if thessary to further address period of low inflation. That is mario draghi testifying before the european parliament. Move beyondeady to its current efforts . Our next guest says the central bank is using smoke and mirrors to put off qe. Great to haves you with us. Smoke and mirrors from the ecb. The biggest thing that he has in his favor is that asset prices have not moved up significantly. As the prices have moved significantly in advance of him doing anything, that works tremendously in his favor because he keeps talking about it. When they do do it, they will expand their Balance Sheet at some point, they do not have to launch the program from the outset. This initiative of targeted lending, we will not be able to get your hands on this money. Why would any bank want to buy sovereign bonds . Being anvision this as constructive force, targeted lending they will do with the banks . They have to focus on the flow. The issue with the balance of payments worked in both directions. Faster credit growth in parts of the economy and more ecb easing can weaken the balance of payments. That could lead to a weaker euros over time. If they ease very aggressively and flows in the Financial Court increase dramatically, that could put upward pressure on the europe. You these imbalances building in parts of the economy. You havent balances building in spain. Buildingve imbalances in spain. That puts them in a difficult position. I do not think they want to be in this position three years down the road where they are faced with a bubble. , he kept say yesterday reiterating of mark carney in the financial confidence. There are all sorts of moving parts. The Exchange Rate factor, the credit flow factor, the normal things that we were concentrating too heavily on. Flied out gdp growth. Flat out gdp growth. The secret to getting out of crisis is to inflate bubbles. Central banks do not have it choice but to lowball bulls. Bash Central Banks do not have the choice. Anna, you have a special guest. Thank you very much. Joining me with the airbus coo. Great to see you. A Beautiful Day for day to. Day 2. What will success look like . What do you hope to achieve . Easily. 1000 orders the market were looking at is over 4000 aircraft. I would like to have between 50 and 100 orders for this airplane. Urd have 25 you already have 25 with the leasing company. We will him more about that this week. Asia, they have been harassing you for what they call a killer aircraft. I am guessing you think the low Cost Airlines will take this one on. This is going to be a good aircraft in terms of economics. Lower fuelring 14 burn per trip. 25 capital it with funds. Help me with the comparison between the dreamliner. It is going to be competitive on price. But he looked at the list prices , are we comparing the wrong things . Has a strippeddown airplane on their website. Like. Paring like with i make how big can the Chinese Market get . Very big. , not just then neil. Altogether, over 200 and china. Livelyad a very conversation with the ceo of qat ar airlines. What exactly is holding it up . I believe a lot of it is cosmetics. Every airline is entitled to go through his brandnew vehicle and make sure it meets the standards. The standards are very, very high. We have had a lot of conversation in france about the use of the euro in international trade. Any thoughts about whether the europium play a bigger role in international trade. Easyjet, lufthansa can buy their aircraft in europe. We believe thisll become another reserve currency just like the u. S. Dollar. Now we offer it to any airline if you would like to. When it came out, it it was at 119. Thank you so much for joining us. We will let you get somewhere with more air conditioning. Thank you very much. The words of the airbus coo. The euros to strong and that is one of the biggest problems. Lets get back to the other big theme. Are. G to decide where we lets talk about janet yellen. You are looking tired already. The new yorker says, a very dovish town. Are we going to have to stick with lower rates . She will not move away from this dovish position at all. Managing the transition from not. Two things like Forward Guidance and liquidity withdraw. The first rate hike is the main obstacle she has to overcome. I would like to look at things from a currency perspective. Cover on thewill dovish side as long as they can so the transition is a smooth one and then the question is, how rapidly did they miss the equality. They think they are trapped, to a degree. Look at what happened to the housing market. There were sizable implications from the tapering announcement. The conditions the fed is trying to prevent with monetary stimulus are being caused by the exit from the monetary stimulus. It leaves them trapped to a degree. They will have to manage liquidity withdrawal phase. The risk is that a large bitidity gets diluted a because what they will try to do , it will offset with that and it may keep the longer end of the curve very flat. The actual impact of the liquidity tightening is deleted somewhat diluted somewhat. The dollar will struggle to gain significant upside. Not great news for mario draghi. U. K. Dated to come just after the break. Camerons cabinet reshuffle. William hague is out. Who is going to fill his boots . Welcome back to the pulse inflation data it in the united kingdom, june inflation rises to 1. 9 . Of estimate was for rise 1. 6 . Lets have a look. Saint think like a brick. Sank like a break. , that comes in at two percent. Buster in terms of the inflation data. List take a quick look at the currency reaction. Big move in cable as well. That is a big surprise. Many people expected to see inflation, if anything was going to be asked after the number, does the bank of england need to do anything . What is left . Look at the quick eurosdollar for you. Unchanged on the day. Extremeaghi said this Exchange Rate is a risk to the recovery. If after day for much of europe. Largely unchanged. Around one percent. 600, the biggest declining industry group. The banks, everybody talking about the Banking Sector to. The parent company, the reports began they were making bond payments. You have a down day across much of the eurozone. , does she stay on message . Lovely. Lets get immediate reaction. That is just breathing. That is a big move. The core number is the one you want to Pay Attention to. That keeps the notion of a rate hike before the end of this year firmly on the table. The main point, the value of sterling matters immensely in the policymaking process. It does under carney. You need to consider that the u. K. Is a small economy with its own Exchange Rate. The Exchange Rate needs to be managed. If you look at the balance of payments. Of the other countries around the globe and the other economies around the globe that have financial sectors as large as the uks. Singapore, hong kong, switzerland, all three of those companies have a currency arrangement of some sort. When you talk about carney, a great deal of debate. I am interested to know what you think. That is a good thing, isnt it . Communicating at all. He is a master hedger. It is a hedging strategy and the goal is to get market rates to get the Exchange Rate moving. That will make the tightening cycle less severe for the domestic economy. They could control Market Forces with rhetoric and expectations and keep themselves hedged. The start of the cycle and the cycle itself does not have to be as aggressive. We spent a lot of time accessing prices. Approvals. Mortgage i want you to go beyond the mortgage. What is happening in the rest of the economy . A lot of people like to say that housing is not driving growth. Housing does not need to drive growth in order to be central to growth. Look at the proposal of the index of services. They are very highly correlated. Once one of those things starts performing strongly, the rest of economy can only become if for policy setting knocks out housing significantly, he could put that into reverse. It could send shudders through the whole economy. You have a piece of your notes that say [inaudible] this is amate global perspective of are you looking at the world at the moment . You do excessive monetary there is a cost to that. It comes at a cost of lower real Interest Rates and a weaker currency. Ifyou look at the eurozone the ecb had been stimulated as aggressively, they would have a weak currency, too. Me and wel stay with will talk about what you do for your day job. Lets move the agenda on. Politics seems to be on the forefront. Dave David Cameron is shaking up the government. Promote women and he wants new faces in the country. That was not terribly expected. This is a big reshuffle, 10 months before a general election in this country that is supposed to come in may. The president wants to shake things up. Faces in the cabinet, he wants more women in the cabinet. The perception that they would were out of touch. That is too big departures to mention. Minister. Ecame a he is resigned and said he did not want to make pigs ears of it. Another big departure is the foreign secretary william hague. This guy addressed the conservative party as a 16yearold in 1977. Extraordinary. He had the exact same diction he has today. We have seen this morning walking into 10 downing street in front of the cameras. Highers. Secretary for the environment. We are 10 months from the general election. David cameron has been perceived as not being inclusive enough. He is trying to correct that. One of the other big criticisms is that these are iteer politicians in nara, is from the upper echelons of society. I will pick out one other trend. Of defense post secretary. If you had to think about something behind it, i he is perceived to be more about eurosceptic. Philip hammond said that if he wouldve voted against britain being in the european union. We have a general election and wave a possible referendum and it is all about refreshing the cadres, but also trying to get more in touch with the core support for the conservative party in this country and that includes things like trying to make sure this does not look like an Old Boys Club and reaching out to the more eurosceptic apart of the conservative party. You somel show pictures. They will live in the memories of lots of people. The German Football Team has just arrived. It is the fourth time germany has one. Won. S stay with us. Welcome back. Live pictures, the German Football Team has just arrived. It is a heros welcome. 10 win for germany. The fourth time they have one this tournament. It was mailed by the news conference. Walltowall coverage. Parade thatory live high oning to the hog. They must have a sniff of that trophy. We will keep you abreast of that. Stephen, thank you live high on the hog. They must have a for thing with us this hour. You analyze currencies and you make some pretty big calls. You have a view on your account. The Canadian Dollar is going to struggle. Ashink i can get back a sigh 148 150. 148 or 150. S i think ultimately, they will get to appoint where they are referencing the currency in the states. They are trying to prevent depreciation of the economy. Hasnt carried more weight than other Central Banks . It would. Holdout of all of the major Central Banks. That would be big when it happens. I think it will happen. They will get their eventually. Your new target i did not think you will move very much at all. Look atly, you should target levels. You have city an interesting take on clones. Ollar content norway is a bubble economy. The sizes so significant, is outlined the Budget Surplus in all of that grips fund into the economy. Looking at the nonenergy trade deficit, which is very doorway, they the are going to be very wary about it. Deflates nfc will sector of the economy diminishes important, they will not grow. I do not agree that you should be a buyer of that currency. Thank you so much for coming in this morning. We have covered a lot of ground, as usual. Nfc will sector of the economy diminishes important, they will notlets bg interview from the Worlds Largest air show. Delays. Ked about the i would notes like to say this in front of the camera. Are you quite angry. This is making an impact. Can you tell us anymore . Something to do with the interior. Look Something Like that. Oft is the cio of the co Qatar Airways speaking with anna edwards. Talked amongst the fighters, the jumbo jets, Small Companies are trying to snatch a piece of the aerospace market. Among them is a u. K. Amongst the jumbo jets, small company, a flying car. You cannot resis