Deals with china. The oil major is expected to unveil mostly billion ton deals to supply staff to china. Mitsubishi launch their takeover proposals for the firm. The french president prepares to meet the ceos of the two firms in a few minutes. And another recall for gm. The troubled automaker takes another 3. 5 million cars off the road for faulty ignition switches. Youre watching worldwide exchange, bringing you Business News from around the globe. Welcome, again, to worldwide exchange. Lets get straight to our top story today. American troops are going back into iraq. The white house announced its deploying up to 275 million personnel to provide security to the embassy in baghdad and other u. S. Interests in the country. The Iraqi Military has so far managed to curtail the sunni rebelled pushed towards baghdad with continuing to consolidate their strong hold on the northwest of the country. The u. S. Says its open to iran over what measures it can take. John kerry said discussions did not include military operations. Were open to discussions, say, if theres something constructive that could be contributed by iran, if iran is prepared to do something that is going to respect the integrity and sovereignty of iraq and the ability of the government to reform. Joining us now is sir william patey, former ambassador to iraq. It feels like president obama spent the last few years trying to disentangle himself as far as Foreign Policy in the region. Can he look at the troops being called back in here . I dont think. I think that small number of troops is to enhance production in the u. S. It gives him an option of reintroducing usair craft into iraq in the shortterm. I dont think theres any appetite for u. S. Military engagement and i think both president obama and others have made that clear. Some of the uk leaders picked up on this idea that perhaps we could see an improvement in the relationship between iran and the west. Both sides right now saying theres not going to be any coordination as far as involvement in iraq is concerned. I think direct military cooperation between the u. S. And iran would be a big step. I guess the back drop of a possibility of a nouk here deal, there is the prospect of a u. S. And iran sharing shortterm interests in iraq. They both have something to feet from isis setting up in iraq. So they would have interests. I suspect what well see is americans coordinating with the iraqis and the iraqis coordinating with the iranians, so it may be coordination arms led through the iraqs. Whats the best outcome here . The iraqi army gets its act together with help from the International Community and its able to hold back isis and retake part of the territory. But that will only work if they have a political plan to bring sunnis back into the process. I think the reason isis has had this opportunity is because the city majority have been alien ated, the sunnis in the majority areas have been ail alienated. 250,000 Iraqi Military personnel. Admittedly, there are many factions weve seen over the last few days. But given the sheer size of those numbers, i think its the lack of coordination at the top thats preventing any decent sized push back on this. I think we see pushback. The problem as we may see it is the in that there are longer term problems for iraq. When i left iraq in 2006 as ambassador, they were still active and threat threatened the breakup of iraq. Once youve reformed the militias, they may be more difficult to put back in their box. It will be difficult for isis in the longterm p to hold on to that. I think the military will be disappointed, to say the least, but i think its really down to the iraqis. I dont think everything that happened since 2003 can be blamed on the u. S. Saudi arabia said they were against any kind of foreign intervention in the situation. Why dont countries like iran, like turkey, like saudi arabia step in here to stop the situation . I dont think its capable. I think this is basically an iraqi problem that has to be solved. Now, it can be helped or hindered by International Fears or international systems. Its essentially an iraqi problem. I think the iranians can help, the saudis can help by supporting moderate sunnis and helping them into the political process. The saudis have been a huge disappointment to isis. If it has to be a domestic solution to the problem, how long does this drag out . I think its not capable of a quick solution now. Obviously the military will take some time to recover the ground. So just keep our views with other issues, of course. The International Energy agency has warned all those targets are looking increasingly at risk. The iea cut its outlook for Oil Production to 4. 5 Million Barrels per day by 2019. However, the agency did say that Global Demand growth would begin to slow by tend of the decade partly due to higher prices. Weve got trading slidely lower in the session today after the gains weve seen in the last few sessions, oil off by 0. 4 . Breaking news from gazprom this morning saying gas supply to ukraine are stable. They completely stopped the flow yesterday from ukraine. Ukraine wont be receive anything gas from russia unless it pays in advance after it failed to meet the deadline payment yesterday. The head of the ukraine state and gas company says the country has supplies that could last until december and it is working to reverse the flow of pipeline to import gas from iraq, germany and poleland. Another desperate situation in the geopolitical sense right now, not just as far as the gas talks are concerned, but also the situation with russia in the east of ukraine and the relationship with the west. How is this playing out . Its a very troubling period. Weve seen that with the situation in ukraine. Obviously the election of a new Prime Minister in ukraine has made a difference. I think theres a long way to go in that, but it highlights the vulnerable in western ukraine and europe generally to stopping gas supplies. Ironically, oil and gas from iraq through turkey was seen as one of the alternatives to open up gas supply to europe. Essentially, two things are happening at once. Would you expect oil price toes be higher based on exactly what you just said there . Well, i think your piece suggests most of the Oil Production is in the south in iraq. So i wouldnt bet carried away. Through mosul the oil supplies have been disrupted. I dont think theres an immediate crisis. Sometimes the oil market can be can move on sentiment rather than reality. Given what you know, the countries are operating right now . Theyve got some natural advances in the north, theyre operating in sunni areas, the further they go, they hit much more shia dominated areas. I would be surprised if they get closer to baghdad than they are now. Coming up, rolling out the red carpet. Chinas premier makes its way to Windsor Castle to meet the queen. Well have all the dekals coming right up. [ female announcer ] theres a gap out there. Thats keeping you from the healthcare you deserve. At humana, we believe if healthcare changes, if it becomes simpler. If frustration and paperwork decrease. If grandparents get to live at home instead of in a home. The gap begins to close. So lets simplify things. Lets close the gap between people and care. But were not in the business of spokespenaming names. Kswagen passat is heads above betthe competition,care. The fact is, it comes standard with an engine thats been called the benchmark of its class. Really, guys, i thought. It also has more rear legroom than other midsize sedans. And the Volkswagen Passat has a lower starting price than. Much better. Vo hurry in and get 0 apr for 60 months on 2014 passat gasoline models plus a 1000 contract bonu welcome back to worldwide exchange. Back to the situation in ukraine now. Speaking exclusively to cnbc, the ceo of russia conglomerate sistema said the company has not seen any political fallout from the crisis in ukraine. The company is still looking to increase production in russia. In terms of first of all we have a number of opportunities in russia still to increase our production and our nearest target is to get our production level at least to match the refining levels. Because our Refining Capacity is 24 million tons and now production this year will be around 16 million tons. So the nearest target is to bring it to 24 and we can do it pretty much inside of russia without having to go out anywhere significantly. Now, joining us from the World Petroleum congress in moscow salary ex ander corsnet, ceo of bashnet. Could i ask weather you agree that right now youve seen no impact on your business from the situation between russia and ukraine and, of course, the sanctions that were applied by some of the western countries . It would be wrong to say its not affected at all. Were affected by a certain extent, but only in terms of the course of mining were getting. But we have sfusht operations which allow us so it is not. There was a message that you said back in june that the cost of financing is too high to be looking to raise cash. Do you feel the same now . Well, we are not in any discussion for the time being. And hopefully the markets will be stabilized in some not very distant future. 2 prospect of an ipo either in moscow or further down the line, theres a perception right now outside of a Russian Company influence your decision . Would you perhaps looking to stay at home in the future rather than, perhaps, going to london given that perception . There is no formal decision about whether we go to operations or not. But we are getting take a look at that in case the market is trying to make it personal. The performance is pretty good. What is happening in the mngt surround us, performing much better than the market itself. If the market will if not, we can postpone it because the major potential is to feel the increase of the shares. Some of our inventors prefer more on the spur of the moment. Can i ask you about the Current Situation in iraq and how that influences your Investment Decisions going forward, too, whether its finance organize its actually the oil business in particular . And i guess im asking not just g geopolitical, of course, but also oil price volatility. We have a in iraq and we are now preparing to do three which will give us time. But, well, we can always perform for the institutions. We do not have any significant exposure. But, again, where oil is produced, i usually look very stable and very comfortable in places. The rest of the region which you are sometimes stable. For the interest in oil prices, where all the prices are going, its useful for our folks, its useful for the russian industry, but the situation in iraq comes down and will continue. We hope before we need to spend a significant amount for the stations to be stable. Alexander, thank you so much for joining us. Outside the World Petroleum congress, bob dudley commented about the impact on his business. I have no special insight as to whats happening today in eastern ukraine. I am not concerned about our 19. 75 investment in rosneft and theres no indication of me of needing to change any relationship i have with the rossnet board and planning and continuing to work in that role as a member of the board of directors of rosneft. In terms of further u. S. Sanctions, do you feel the state department is going to put you under pressure to lessen your involvement in russia with rosneft . No one has spoken to me about it and its not something to speculate on. I i cant speculate and shouldnt comment, anyway. We spent the first 20 minutes of the show talking about iraq, oil, but we are looking at the stoxx europe 600 up around 0. 4 . Right now, weve still got a number of risk events coming up. We have the fed tomorrow and the decisions and the commentary that we get. That is the focus right now in particular for uk investors, of course. Pretty much gains across the board around 5 . Lets take a look at the asian session, too, a mixed bag as far as performance. We saw the s p down 0. 2 . We had a more dovish than expected rba minutes out. Tedz theyre not sure right now that the current stimulus isnt off setting the Mining Investment and, of course, the government belt tightening, too. We oversaw it going under a bit of pressure, watching the indian rupee, at a twomonth low today. India, twothirds of their oil imports need right now. All the geopolitical risk, the risk east keeping some of those risk currency bid right now. But no real big moves right now. A quick check on sterling, of course, ahead of the cpita but were expecting to get 1 of 6978 level right now. The british gornment announced it would ease access ahead of the premier league. The chinese arrived for a start of a threeday visit to the uk to discuss trade, investment and energy with the Prime Minister. Meanwhile, bp and shell are expected to unveil multibillion dollar agreements with china. Steve asked ceo bob dudley about the 20year deal. Its a 20year supply. It is a big deal. Its l g of a fair price for them, a fair price for us, its a big deal in terms of a bridge between the uk and china in terms of trade. Sri, were obviously very interested in chinese inward investment. David cameron is very excited about that. His comments about human rights potentially to derail that investment before its done. Its a very good point, julia. You cannot ignore the politics. It is overshadowing this year 30 billion of trade deals that can be finalized when all of these meetings wrap up. And it hasnt been without controversy. We spoke about those comments from deputy Prime Minister nick colleges. The chinese hate being lectured to on human rights. Lets not forget that. There are three ts that you just do not talk about in polite chinese society, political circles, as well. Tibet, tiananmen and you could bet the deputy Prime Minister has crossed those lines. Is it going to jeopardize these trade deals . I would say no. Youve got to realize that theyre almost 200 private companies that are represented in this trade delegation. And that is not including the state owned enterprises. So you have to look at the caliber of the companies and the Business Leaders represented here. Ite interesting from the banking sector, icbc, some very big names. And remember that london wants to away global hub for the renminbi trade and its trying to posit itself in that direction. So we should get more clarity on that front. So at the end of the day, link diplomacy will run its course, there will probably be a lot of closed door discussions by the diplomates on either side, trying to smooth the way and trying to smooth any ruffled feathers. Sri, i have to ask, never mind the business whab do the chinese premier and the queen have in common . Theres a bit of a dichotomy there, too, isnt there . Surely. The they will be meeting later today. You have to ask yourself this, really. China is still a communist country and theyre consorting with imperialists no less. How to be loved for over 80 years, im sure he would like to learn that. Thank you. Well talk to you later on in the show. Meanwhile, hong kong shares have been placed on investment. Chinas Foreign Direct Investment fell by over 6 in may. Thats the largest seen since january last year. The weak yuan may have kept companies from plowing more monies into the mainland. Rebalancing in action, i think, in the fdi numbers, too. Shares of chinese casino operators fell in hong kong after macau reduced the number of days people can stay in the city on transit visas. With china under the new government has been clamping down on lavish spending as part of an anticorruption drive. Panels looking set to legalize gambling, allowing casinos in the country. But the passage of the bill is not expected until later in the year. Companies including malco crown are vying to win the first licenses to operate casinos in the market that clsa estimates could again around around 40 billion annually. Still to come, data released right after the break. Stay tuned for thob numbers as soon as they hit the wires. Welcome back to worldwide exchange. The International Energy agency lowers its outlook for iraqi Oil Production. This as violence spreads and the ceo of bp tells us hes not worried about the companys operation necessary iraq. Bps asset res down in the south, down near the would you wait border. Theyre a long way from the trouble of production being increased in response to the requested by the government. They continue to operate. Bp and shell are set to win big deals with china as the premier is preparing for a uk visit. Shares fall as siemens and mitsubishi launch their deals for the takeovers of the firm. The ceos prepare to meet in the next 30 minutes or so. And another recall for gm. They take another 3. 5 million cars off the road for faulty ignition switches. Were going to be bringing you the latest uk inflation data and uk sales data. While were waiting for that to come out, were going to introduce david owen. Were hearing that the data is out, david. So before you take a breath this week, ill introduce this data. Weve got core cpi at 1. 7 year on year. Lets see where thats come out. We havent actually got that data out right now. As we look at the rpi data, plus 0. 1 on the market. Thats 2. 4 plus on the year. Slightly higher at 0. 2 on the month. So a touch weaker on the rpi reading right now. Were still waiting for the cpi numbers right now. Actually, theyre just coming through. So uk may cpi minus 0. 1 month on month. Plus 1. 5 year on year. Of course, it was forecast at 1. 7 year on year. Thats the lowest since october 2007. The core cpi unchanged month on month. 1. 6 year on year right now. And if we take a look at the oil goods number, plus the year on Year Services at 2. 2 year on year, too. Interesting, david. So reintroduce this. Yeah. The bank of england back in may, were going for 1. 8 inflation rate on average in the Second Quarter. Now make in the oneeight in april. So this is a big theme. Also, in germany, the Unemployment Rate was at 5. 2 and in some regi