up in the u.s. i am mannus cranny. let's start with the one and only event, if you're waking up and possibly have a hangover. if you are german, you might be a little good. bitou might be a little distracted. ceo and he boeing said he does not see it slowing down and activity. fora new suite of airplanes a wide body. has aitor, anna edwards, very special interview for us. thank you very much. good morning to you. we talked about commercial aviation space and less about the defense industry. that is a theme. 35 was opposed to make a
debut. it was not here today. leahy.joined by patrick will beupset the f-35 flying today? >> we are not sure. we are strongly supporting the thatnment decision-makers are doing the evaluations. you do not know what the future brings. is a good shape. over 100 jets. pfaff over 17,000 flight hours. one jet last month did want -- did more than 1000 flight hours. we are confident you will see the f-35 in the future. the three engine that
started this a grounding. as there have been other problems and in the program in years past. it has been a long time coming. can you bring us up to date? will there be nothing but good news? >> it is a developmental program. it is really knows a surprise as we go through the flight to test the regime, we will find certain things that have to be resolved. we have two or three more years before we finish the full development. there's a series of flight lifts , software loads were flying the one that is operational with the marine corps next year. flight version in the development and flying on some test jets. we are making solid progress. it is a developmental program and will have certain issues. the bottom line, we think it is
a good shape. >> some governments reevaluate how much they will buy. issues around the project. are you confident all of the deliveries that are in place will be kept up tp? >> would've made good progress in the past couple of years and each government have to make their own decision. there is governmental spending and airport infrastructure thomas something they have to infrastructure, something that have to make an afghan make decisions. we have israel and japan and south korea have announced. some will be coming on. wille pretty confident it progress and maybe not exactly as it was viewed but will go successfully. >> at you at some of your partners are investing more money to save more money. >> we have a blueprint for
affordability and we are focused. it was announced earlier this week. are cost competitive. this object is going to be essentially the very competitive with the what we call a generation. as you probably know, more sophisticated, integrated sensors designed so we have a pretty good perspective that this thing is going to be a cost-effective. >> you mentioned some of the tight budgets we see especially and was the government, the u.s. is one of how much will be spent on a defense. run us through where we are on your reliance of the u.s. the government and international market and where you see it going and in the future. $8lockheed martin does billion outside of the u.s. most people may not realize we have this broad portfolio through information
technology and global services. about 7000 people outside of the united states and 3300 in the u.k. alone. when we deliver all of our services and through the government's that are looking propositions money for everything from defensive to security needs, we have a real growth opportunity and that is how lockheed martin will go forward. ,> the backdrop to this airshow being a much talk about, russia and attention at least over ukraine. over the south china sea. this kind of environment, does it offer opportunity or make a tough environment? world is not getting safer. as you indicated, eastern europe , europe has not seen this type of situation where it is unstable and uncertain for
probably 15, 20 years. governments need to them to spend the money they spent for their security and have a deliver the best value. lockheed martin in particular because of the portfolio and capabilities, to offer that value for money that governments need whatever the solution is required. >> because of this -- because of the stations plays all russia and particular sanctions applied dore there countries you business with that are getting shorter at the moment? >> not really. we do business in over 70 countries. quite frankly, we have some business relations with russia as you probably know at a maid at a press a couple of months ago. we deliver the r-80. couple made the press a of months ago. we do business where business it
makes sense. where they allow us to do that. in general, the business environment has not drastically changed. >> what technologies do you have on display here? >> we are doing good cyber demonstrations in addition to f-35. we have cyber demonstrations and capabilities. integrated network systems. that's what we are pushing. >> and joining us. from lockheed martin. things are getting noisy. plenty a displays. day one. number off with pretty of announcements. f-35re information on the which everybody is keeping up
with. she will be back later with john harris. mosts move over to the watched sporting event. if you have not heard about it, germany won the world cup title. they beat argentina, 1-nil. hans nichols braved the night away. ryan chilcote watched the game. you come in from berlin. >> too dangerous to be there. too many fireworks. it is dangerous. they do celebrate. they like the pyrotechnics. storys is a remarkable for germany. a feel-good moment. an economic boom afterward. we pretend that stock markets correlate. one thing that is correlated is adidas is up 3%. >> if they are the sponsor.
let us talk about beer consumption. for beer iser pretty important. consumption up for you? >> no personal matters. [laughter] biggest up for one the the south. who knows if these numbers are true. no one is checking the breweries. probably.y, >> a beer is important when it homes to russia. >> what they have taken from infrastructure, get it right. russia did not need to learn from a brazil. the russians will build 12 stadiums in 11 cities in a district. they have a lot to do. ofre've already built three the stadiums. one was built for the olympics in sochi and one in moscow and will be for the football club.
another has been done. it is something the russians are beyond and they want to make sure they get it right. it is the first time they will hold a world cup. as for beer, there's a crackdown on alcohol. huge exposure to russia. carlsberg andfor all the breweries and people like to drink beer, it will be advertised during the world cup which it currently is not allowed not to happen. it should be good for beer sells. is another one of the companies who did well. hadne of the guests we early, the ability to be text areas in terms of what you -- xeterous is what you show.
let's talk about maria goetze -- mario goetze. he will be worth what? goldenmessi got the boot. no said he should not have -- >> we know who he is. knownis perhaps the best footballer. should he have gotten the best of man, messi? he was perhaps the best man out there. one said he should not. and the marketers wanted him to get it because a made sense. messi did i think so, he was crying. he did not get what he really wanted and that was the world cup. i am not going to weigh into
that. >> a hero's welcome. >> he has the hearts and minds of the germans. pretty proud of themselves coming together. a young group of guys. the average age is 26 and they will be back. >> young and they will be very, very -- what is the word? rich. still to come. a bloomberg exclusive. we are live with the former bank vice president. later in the hour, will talk to a ceo. we will be live at in the world's largest air show. ♪
>> welcome back to "the pulse." check of theick currency markets. we are seeing a little bit of a willful. last week, what you saw was one of the biggest the most in dollar in almost year five years. it is common off of lows because the janet yellen. more dovish. an opportunity to sell into the dollar/yen. let's keep an eye on the dollar/yen. currency is on the
move. citigroup coming out. there are norwegian krone which is very interesting. i was going to talk about euro against the norwegian krone. we'll keep an eye. indeed -- as the rates cut. let's talk about pharmaceuticals. up.e, the stock is they said today are willing to recommend an offer at the revised terms from abbvie. they had previously refused several bids. matt campbell and caroline hyde are here. where are we on the price? get to it is not a
done deal. 55 pounds 20 per share. 31 billion pounds for shire. that is 35% higher than the very first offer dated -- they put i n. why it is so attractive to abbvie is the corporate tax rate. they have money abroad. it is a diversification at the moment, abbvie gets half of his revenue from procedures for treatment of rheumatoid arthritis. once they diversify, what do they get for shire and disease and treatment? wasdrugs for hyperactivity a it is a win-win situation. that is why they keep upping the deal. shire has been brought to the table and it looks like the board will back it. vehement heas very wanted to stay independent and
be given the opportunity and here we are. they could capitulate cash. >> as they are in it for the money clearly. what else? the dam did burst last week over the weekend. the latticed -- in the latest offer seems to have gotten shire shareholders to put pressure to table. the they "should in a new york on thursday and friday and over the weekends. understanding. -- they opened up in new york on thursday and friday and over the weekend. >> they have got to do this deal , i understand by friday. >> they do have to do it by friday. the deadline can be extended with the consent of both parties. if they are both at the table, it is a good idea they would
extend. usually these teams, down to the wire. it has been a disappointing lack of trauma. >> it is interesting at the moment, shire is for tax purposes dublin-based and is moving their address to you came -- they u.k. it is such a trend. we are here and they want more power. these foreign takeovers. is it -- difficult very scene to define. i heard you with the pfizer/asterisk deal it will be more doable. >> if you do not stand by your deal, we will charge you. fts, whethero cra they did so are not, go back on
commitments they made into the u.k. government. what they're talking about is enshrine theseo into stone. >> i remember that the deal being done and levied in our minds i. trust, do you of think this is politicking, caroline? putore clearly he wants to forward we will do what is in the best interest of the u.k. and more of these deals are set to come. >> especially in the pharma space. invert u.s. company can abroad. it will change one day. >> it takes time to get it through. >> it will be a very long time. >> it could be the next big
>> welcome back to "the pulse." on your ipad and bloomberg.com. it is time for new energy headlines. china. at least 30% of new government vessels will be powered by alternative fuel sources by 2030. the latest efforts to combat their smog problems. the new cars will be electric. will -- trading, but he trading company will build a power station. construction will begin in august. nearly $200 million plant will be running by 2017.
facebook, walmart and other major u.s. companies are having an easier process for buying alternative energy. the companies say there is difficulty in vetting cost competitive options and face complex contracts for buying or investing in renewables. i know you been waiting for it. this is the number. 300,000 euros. that is the reward given to each german player for winning the world cup. germany beat argentina in case you have been asleep and missed it, it was 1-nil. it is the fourth world cup for the unified nation. they narrowly avoided the penalty shootout. 1990.last away and was in also against argentina.
>> welcome back to "the pulse." it is time for the top headlines. addresses the european parliament today, the first time since the elections in may. you could discuss the central bank so-called key program, denying to semantic european economy. a bloomberg survey shows economist forecasts he measures will hand thanks more than 700 billion euros in funding. israel shot down a drone flying
from gaza this morning. its assault on rocket firing its seventhtered day. about 170 palestinians have been killed. will rise toat medically if israel goes for a ground invasion. -- rise dramatically if israel goes for a ground invasion. russia and germany are calling for new crisis talks on ukraine. in a meeting yesterday, president vladimir putin and chancellor angela merkel agreed they should meet as soon as possible to secure a cease-fire in ukraine. clashes between the nations government and pro-russian rebels have intensified since president poroshenko called off a cease-fire at the beginning of the month. global headlines. let's get to global markets. start at the week across some of the major benchmarks.
concerns last to over some of the portuguese banks. the questions remain for the eurozone financial system. , a big mover of the day takeover. could we finally get a deal? backing a 31.4 billion pound takeover. is a tax rate down to 50%. that tax rate comes with a price, and they're willing to pay it it seems. that djokovic the biggest farm and dio outside the u.s. this year. -- that joe could be the biggest pharma deal outside the u.s. this year. they are willing to stay patient. janet yellen speaks tomorrow. they say it is doubtful you will
get that carney moment from her. you will get a push up in the dollar and a push down in that euro-dollar. the dollar has to get stronger. the fed has or at least janet have to signal. let's go to new york. "surveillance" at the top of the hour. we have big bank earnings this week and you have scholars, i believe, from cornell on the show. >> we will get an update as we begin to think about back to school. we will talk to them about immigration. he is front and center on that debate.
citigroup come out at 8:00 this morning, scarlet fu will give us an update. and from capital markets, he is written on the acceleration of earnings. we will talk to him about that. and also the enthusiasms and mergers and acquisitions. a lot like in the shire transaction this morning. >> you look at that jill and eventually, what i love, all institutional shareholders capitulate eventually, don't they. how soon do you think the americans will say, enough, we need to change this tax legislation? >> i see no indication that will and. it goes on and on. i think the best one for people to understand is what apple computer is doing, where they
essentially generate debt to repay that use of cash are broad and do not bring the cash home. that is just the beginning of the process for the billions, trillions, that are abroad. >> were you happy to see germany wind? the best thing about it was it was a great goal. fabulous goal. >> we have to leave it there. see you soon. well, atina suffered -- close but crushing loss during the world cup final. now the wary nation must turn its focus to the economy and the looming july 31st deadline. the argentine government court ordered to pay back its debt holders by that date. the former governor of the bank of argentina joins us from exclusive interview on how the country can deal with that painful date. welcome to "the pulse."
great to have you with us this morning. you watched the game. how do you feel? what was the atmosphere with your compadres? >> i am disappointed, but i'm also quite proud of the performance of the team. the team performed very well. we got second. the end, it turned out to be a matter of luck. what do you think of messi's game? many said he was tired. >> he was not at his best, but he is the best player of the championship. it shows what the real argentina is. a lot of will power. maybe you don't get to the big prize. >> let's talk about the reason we are be here today, cristina
kirchner has got to do a deal by the end of the month. do you think she will do a deal with the barn hold and avoid -- on hold and avoid default? will beconvinced it successful. it will be successful in they will find a solution. the government has been quite itsrmined to normalize inclusion of the capital market. the international capital market. >> do you feel assured they won't fall over that date? therem absolutely certain will be no technical default. >> if we don't have a technical seeult, how soon could we
-- what does it mean? talk me through the immediate impact for argentina and for to kirschner. >> i believe it will lead to a deal. most of the problems of argentina will be solved. there are still some decisions with the imf that also must be normalized. i believe there probably will be. >> to think lagarde is supportive? >> i think so. what will happen? at atina will recover reasonable price. the cost is very high. -- it will be
possible to get financing. the country will need less of an adjustment for a while. they will be able to get out of a situation like today where a recession is paramount. >> charybdis levels of inflation. i know we're moving toward a more honest level of that, but what can be done? what is realistically achievable for the government if they avoid this default in terms of -- we've had one to valuation so far this year. to you expect another? depends. it could be possible to finance the payments on the date and so on. it is necessary to have an adjustment in the rate. the size of the valuation, the amount of feedback on the economy will be much less.
very tight fiscal adjustment now in the middle of a recession. >> what is reasonable price to go back into bond markets? >> first of all, it has to be one digit. >> single-digit. >> yes. probably if they could borrow a percent that would be acceptable. let's put it on the table. it is not only the financing to the government, the possibility for victim prices fish for enterprises -- for enterprises. it will free funds for the private sector in general. creating domestic credit. will these relationships in
real economic impact? are the critically important? >> politically important, but not economically important. the big problem in argentina is not so much inflation -- it is a problem, recession is a problem, but lack of investment is the big problem. recover the ability to invest. that is why it is also important to come back into the capital market. of integrity,evel and you really don't think the russians are opposed to investing in the show projects? headlinesinted by the -- were you disappointed by the headlines? >> i'm not disappointed, but i never felt the russians were going to be the solution. the solution is to normalize the relationship with the rest of the community and expect those
that value the sources of energy that argentina has, will invest. >> you are a man who has seen many booms and busts. you have worked with the bank of england. you have the opportunity to work and have an insight into the operations of some of the most sophisticated thanks. forward guidance? it, what foe, what is do you make of this policy? >> for me, it is a little bit of nonsense. >> said that again? you're telling people, what are you going to do? if you're going to do it. to change, you change it. central banks always have a motto. they project variables.
you translate it into words. it is a distraction. draghi and mark carney, should i just get back to basics? clear to think about normalization of monetary policy. today, the interest rates are too low. liquidity is too much. crisiso get out of the -- i'm not going to criticize. today, the idea of going back to normal monetary policy should be interest of the central bank, and it is not.
there talking about the effects of going back to normal and not going back to normal. ideask there are some like central-bank independence that we suffer from this equation. some normalization should be started. >> it has been a pleasure and a good message for the markets. cristina fernandez de kirchner does do that. thank you so much. former governor of the bank of argentina. we been speaking but aviation. let's get out to an edwards at the air show. >> thank you very much. we talked a lot about the defense. not here so far.
let's get a perspective. harris joins me now. let's talk a little bit -- welcome to the program. a little bit about the u.s. defense budget and the fact there is pressure on it. what does that do to a business like yours? >> none of us have been immune to changes. we understand the challenges there with respect to the united states government. our job has been to basically ensure we are positioned effectively, have the right competencies and the ability to make the investments in technologies. making sure we bring the solutions to meet our customers needs. >> let's talk about your customers. there's been more pressure to find international sales? >> we have been in the
international marketplace since our beginning. we are a leader. to have 27% ofed our sales and international market. we intend to continue to grow that. we see demand and off -- in all sectors. work here in europe and the middle east, a fantastic opportunities for growth. heone of the areas operating, very tropical, what can a product series showcasing around cyber security or how much is this market set to grow for you? we avenging our work initially domestically. never number of international customers. >> and the f-35, just one , noisy jetsmany taking off in the background. the f-35 isppointed not going to show? >> whatever platform is out
here, your pin or mac and, with systems and solutions on board. precision weapons, air to air, and central systems. >> we will have to wait and see about the f-35. what about drones? that is an area you are operating in as well. >> would provide integrators as well as the uav's ground control systems. westetty tense between the and russia. where does that leave u.s., international defense ability to go out and find customers? there for is to be our partners. we have been there in the past and we intend to be there today and in the future. our sense is our need or our capabilities are there for our customers and we intend to be there to be the trusted
resource. >> it seems like we're in a slightly less safe world. things don't seem to be any safer now than years ago, does that create more opportunities or less? the market is dynamic is probably an understatement. flexible. to be i think we have done that. we are there to meet our customers needs. >> typically, these big airshows we see big deals announced in orchestrating behind the scenes. what are your expectations? is this going to be a big event for you? >> this is a fantastic opportunity for us to engage with our customers. to spend time with the existing customers and figure out what their needs are, make sure we bring the right solution, and also a fantastic opportunity to meet with new customers. we think this is a fantastic venue and an opportunity for us
to grow. >> people still come out despite all the other competitions? >> absolutely. this still figures prominently and will continue to figure prominently in our future. >> thank you for joining us. ceo of raytheon. back to you, manus cranny. >> thank you. more to come from both ana in the next couple of days. stock market a little bit higher as you start the trading day in london. we are back in two minutes. ♪
>> let's bring you more from the air show. guy johnson caught up with the boeing ceo. >> and our minds, we are lagging demand, not exceeding demand. that is the way this game is usually played. you keep the backlog, yet satisfy customers as quickly as you can without getting over the front of your skis. we think we are lagging demand a little bit come up with obviously, if there is a change, a geopolitical event or something that changes the trajectory, we will have to adjust. >> i know you don't like talking about your competitors, but let's 12 on the news. -- let's just 12 on the news. they sold incredibly well. is there concern looking at the kind of wide-body but the
martians rooted for the airplane behind you -- margins eroded for the airplanes behind you? the narrowbody situation, it would technically both to the same thing. and the wide bodies, we have a completely new suite of airplanes with new technology in every way. they're just reengineering in comparison to that. >> what about the price advantage? >> how they price it is up to them. with today's fuel prices, the performance we have, that , the new triple seven, you can make up for a lot of rice difference in a hurry -- price difference in a hurry. we are highly confident even if it is priced much more aggressively than our aeroplan, -- airplane, we will be very good.
we consider earnings acceleration. french publisher says they just say no to amazon. good morning, this is "bloomberg surveillance." is monday, july 14. i am tom keene with scarlet fu and adam johnson. ecb president mario draghi will be addressing european parliament were he will likely announce another trillion dollars in support for european banks. just last week he said the european balance sheet likely to go up another 50%. there is plenty of sugar over there. >> the portuguese news continues to devolve. >> plenty of hope right now. here in u.s., no economic data but we should mention janet yellen will be addressing congress tomorrow.