This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/live/2017/sep/27/theresa-may-bitterly-disappointed-bombardier-trade-tariff-imf-world-economy-business-live
The article has changed 19 times. There is an RSS feed of changes available.
| Version 16 | Version 17 |
|---|---|
| UK government threatens retaliation against Boeing in Bombardier tariff row - as it happened | |
| (35 minutes later) | |
| 6.05pm BST | |
| 18:05 | |
| The day has been dominated by the ructions following the US decision to slap 219% tariffs on Bombardier, the result of a dispute with rival Boeing. Here’s our latest report: | |
| The government has warned aircraft manufacturer Boeing it could lose UK defence contracts over its part in a US decision to slap punitive tariffs of 219% on rival Bombardier, in a dispute that threatens to sour trade relations between London and Washington. | |
| Theresa May said she was “bitterly disappointed” by the move to impose a tariff on sales of Bombardier’s C-Series passenger jet, which threatens at least 1,000 manufacturing jobs in Northern Ireland. | |
| Michael Fallon, the UK defence secretary, stepped up the government’s rhetoric, warning that Boeing’s assault on Bombardier “could jeopardise” its chances of securing government contracts. | |
| The business secretary, Greg Clark, joined the chorus of disapproval, branding the ruling “unjustified” and vowing to work with Canada - where Bombardier is based - to get it overturned. | |
| The backlash follows an interim decision by the US Department of Commerce, which agreed with Boeing’s case that Bombardier received unfair, anti-competitive state support from the Quebec regional government, including a £740m bailout. Bombardier, which has also received £113m in repayable funding from the UK government, called the decision “absurd and divorced from the reality about the financing of multibillion-dollar aircraft programmes”. | |
| The full story is here: | |
| On that note, it’s time to close for the day. Thanks for all your comments, and we’ll be back tomorrow. | |
| 5.43pm BST | 5.43pm BST |
| 17:43 | 17:43 |
| Here’s our full report on Wolfgang Schäuble’s departure from his role as German finance minister: | Here’s our full report on Wolfgang Schäuble’s departure from his role as German finance minister: |
| 5.35pm BST | 5.35pm BST |
| 17:35 | 17:35 |
| Here’s Foster’s tweet on her talks with Theresa May over Bombardier jobs: | Here’s Foster’s tweet on her talks with Theresa May over Bombardier jobs: |
| Spoke with PM about next steps & the need to work together on this issue. Pleased she gave commitment to work with me to secure Belfast jobs https://t.co/rOw1VRo3Tn | Spoke with PM about next steps & the need to work together on this issue. Pleased she gave commitment to work with me to secure Belfast jobs https://t.co/rOw1VRo3Tn |
| 5.23pm BST | 5.23pm BST |
| 17:23 | 17:23 |
| Arlene Foster, the leader of Northern Ireland’s Democratic Unionists, has said UK prime minister Theresa May has given a commitment to work to secure jobs in Belfast following the Bombardier row. | Arlene Foster, the leader of Northern Ireland’s Democratic Unionists, has said UK prime minister Theresa May has given a commitment to work to secure jobs in Belfast following the Bombardier row. |
| The DUP of course have an important position in UK politics, given they are now propping up May’s government in Westminster. | The DUP of course have an important position in UK politics, given they are now propping up May’s government in Westminster. |
| DUP leader Arlene Foster says Prime Minister Theresa May has given her commitment to work to secure Belfast jobs in the Bombardier dispute | DUP leader Arlene Foster says Prime Minister Theresa May has given her commitment to work to secure Belfast jobs in the Bombardier dispute |
| Updated | Updated |
| at 5.25pm BST | at 5.25pm BST |
| 5.19pm BST | 5.19pm BST |
| 17:19 | 17:19 |
| European markets edge higher | European markets edge higher |
| Donald Trump’s proposed US tax reforms have given some support to markets, but investors remain to be fully convinced the US president will be able to pass these latest plans given his legislative difficulties so far in his term. | Donald Trump’s proposed US tax reforms have given some support to markets, but investors remain to be fully convinced the US president will be able to pass these latest plans given his legislative difficulties so far in his term. |
| Joshua Mahony, market analyst at IG, said: | Joshua Mahony, market analyst at IG, said: |
| While the headlines are sure to focus on the tax cuts for rich individuals, the market focus will no doubt centre on the planned corporate tax cut which has the potential to sharply impact profitability throughout the market. With a hawkish Yellen and the prospect of a US economic boom, it comes as no surprise that the dollar has been a big outperformer of late. | While the headlines are sure to focus on the tax cuts for rich individuals, the market focus will no doubt centre on the planned corporate tax cut which has the potential to sharply impact profitability throughout the market. With a hawkish Yellen and the prospect of a US economic boom, it comes as no surprise that the dollar has been a big outperformer of late. |
| While the prospect of lower taxes promise a bounty for stocks, it is worth noting that Trump has yet to deliver on any major policies given the constant rebuttals from the Republican dominated Congress. There is a good chance that these tax reforms are going to be as difficult to pass at the health reforms, with issues such as the controversial border adjustment tax likely to provide significant hurdles along the way. | While the prospect of lower taxes promise a bounty for stocks, it is worth noting that Trump has yet to deliver on any major policies given the constant rebuttals from the Republican dominated Congress. There is a good chance that these tax reforms are going to be as difficult to pass at the health reforms, with issues such as the controversial border adjustment tax likely to provide significant hurdles along the way. |
| There is also some notable caution thanks to the continuing concerns about the tensions between the US and North Korea. Even so, European markets managed to end the day in positive territory. The final scores showed: | There is also some notable caution thanks to the continuing concerns about the tensions between the US and North Korea. Even so, European markets managed to end the day in positive territory. The final scores showed: |
| The FTSE 100 finished 27.77 points or 0.38% higher at 7313.51 | The FTSE 100 finished 27.77 points or 0.38% higher at 7313.51 |
| Germany’s Dax rose 0.41% to 12,657.41 | Germany’s Dax rose 0.41% to 12,657.41 |
| France’s Cac closed up 0.25% at 5281.96 | France’s Cac closed up 0.25% at 5281.96 |
| Italy’s FTSE MIB gained 0.85% to 22,622.19 | Italy’s FTSE MIB gained 0.85% to 22,622.19 |
| Spain’s Ibex ended 1.76% ahead at 10,368.9 | Spain’s Ibex ended 1.76% ahead at 10,368.9 |
| But in Greece, the Athens market dipped 0.5% to 736.64 | But in Greece, the Athens market dipped 0.5% to 736.64 |
| On Wall Street, the Dow Jones Industrial Average is currently flat on the day. | On Wall Street, the Dow Jones Industrial Average is currently flat on the day. |
| 4.37pm BST | 4.37pm BST |
| 16:37 | 16:37 |
| Over to German politics again, and if the Greek government is celebrating the prospect of Wolfgang Schäuble leaving as finance minister, the joy may be short-lived. ING says: | Over to German politics again, and if the Greek government is celebrating the prospect of Wolfgang Schäuble leaving as finance minister, the joy may be short-lived. ING says: |
| If FDP takes finance ministry, Greece might eventually regret Schäuble's exit. Debt relief after bailout even trickier. | If FDP takes finance ministry, Greece might eventually regret Schäuble's exit. Debt relief after bailout even trickier. |
| Updated | Updated |
| at 4.39pm BST | at 4.39pm BST |
| 4.32pm BST | 4.32pm BST |
| 16:32 | 16:32 |
| UK defence secretary Sir Michael Fallon has ruled out cancelling existing orders with Boeing over the Bombardier dispute. But he pointedly added that there were other contracts which Boeing was expected to bid for in the future. | UK defence secretary Sir Michael Fallon has ruled out cancelling existing orders with Boeing over the Bombardier dispute. But he pointedly added that there were other contracts which Boeing was expected to bid for in the future. |
| Earlier Fallon told reporters in Belfast that the UK’s current relationship with Boeing could be damaged by the row and even suggested the UK might decline to buy Boeing products in future. | Earlier Fallon told reporters in Belfast that the UK’s current relationship with Boeing could be damaged by the row and even suggested the UK might decline to buy Boeing products in future. |
| Now he has told Reuters the UK would not cancel orders from Boeing for nine P-8 spy planes and 50 Apache helicopters but added: “We know they will be back at the door.” | Now he has told Reuters the UK would not cancel orders from Boeing for nine P-8 spy planes and 50 Apache helicopters but added: “We know they will be back at the door.” |
| 4.13pm BST | 4.13pm BST |
| 16:13 | 16:13 |
| Here’s the statement from Boeing, courtesy of the Press Association: | Here’s the statement from Boeing, courtesy of the Press Association: |
| We have heard and understand the concerns from the Prime Minister and the Government about Bombardier workers in Northern Ireland. Boeing is committed to the UK and values the partnership, which stretches back almost 80 years. | We have heard and understand the concerns from the Prime Minister and the Government about Bombardier workers in Northern Ireland. Boeing is committed to the UK and values the partnership, which stretches back almost 80 years. |
| The company has doubled its direct employment in the UK since 2011 and tripled its spending with more than 250 companies in the UK supply chain over the same period, to 2.1 billion in 2016. | The company has doubled its direct employment in the UK since 2011 and tripled its spending with more than 250 companies in the UK supply chain over the same period, to 2.1 billion in 2016. |
| More than 18,700 jobs in the UK are at Boeing or in the company’s tier one supply chain. Earlier this month Boeing broke ground for its first factory in Europe, in Sheffield. | More than 18,700 jobs in the UK are at Boeing or in the company’s tier one supply chain. Earlier this month Boeing broke ground for its first factory in Europe, in Sheffield. |
| We are pleased to work with our partners, including the British Government, and provide such a vote of confidence in the UK. | We are pleased to work with our partners, including the British Government, and provide such a vote of confidence in the UK. |
| Any claimed economic threat to Bombardier is due to the weakness of its product in the marketplace, which explains its desperate action that prompted the ITC case due to Bombardier’s decision to violate US trade rules. | Any claimed economic threat to Bombardier is due to the weakness of its product in the marketplace, which explains its desperate action that prompted the ITC case due to Bombardier’s decision to violate US trade rules. |
| Boeing welcomes competition and Bombardier can sell its aircraft anywhere in the world. But sales must be made according to globally-accepted trade rules. | Boeing welcomes competition and Bombardier can sell its aircraft anywhere in the world. But sales must be made according to globally-accepted trade rules. |
| We believe that global trade only works if everyone abides by the same rules of the road, and that’s a principle that ultimately creates the greatest value for Canada, the United Kingdom, the United States, and our respective aerospace industries. | We believe that global trade only works if everyone abides by the same rules of the road, and that’s a principle that ultimately creates the greatest value for Canada, the United Kingdom, the United States, and our respective aerospace industries. |
| Boeing’s petition to the International Trade Commission seeks to restore a level playing field in the US single-aisle airplane market. Boeing had to take action as subsidised competition has hurt us now and will continue to hurt us for years to come. | Boeing’s petition to the International Trade Commission seeks to restore a level playing field in the US single-aisle airplane market. Boeing had to take action as subsidised competition has hurt us now and will continue to hurt us for years to come. |
| 3.46pm BST | 3.46pm BST |
| 15:46 | 15:46 |
| US crude stocks fall but gasoline rises | US crude stocks fall but gasoline rises |
| With US refineries restarting after the closures caused by Hurricane Harvey, crude stocks fell by 1.8m barrels last week, compared to expectations of a 3.4m increase. | With US refineries restarting after the closures caused by Hurricane Harvey, crude stocks fell by 1.8m barrels last week, compared to expectations of a 3.4m increase. |
| But gasoline stocks rose by 1.1m barrels, rather than the 750,000 fall expected. | But gasoline stocks rose by 1.1m barrels, rather than the 750,000 fall expected. |
| 3.37pm BST | 3.37pm BST |
| 15:37 | 15:37 |
| More on the dollar. Connor Campbell, financial analyst at Spreadex, said: | More on the dollar. Connor Campbell, financial analyst at Spreadex, said: |
| A better than expected durable goods order reading, and the prospect of Trump’s tax speech this evening, allowed the dollar to maintain its post-Yellen growth this Wednesday. | A better than expected durable goods order reading, and the prospect of Trump’s tax speech this evening, allowed the dollar to maintain its post-Yellen growth this Wednesday. |
| Ahead of Trump’s appearance in Indiana details have been leaked about his proposed tax plan, the headlines being a lowering of the corporate rate from 35% to 20%, and a reduction to the top income tax rate from 39.6% to 35%. | Ahead of Trump’s appearance in Indiana details have been leaked about his proposed tax plan, the headlines being a lowering of the corporate rate from 35% to 20%, and a reduction to the top income tax rate from 39.6% to 35%. |
| The Republicans want to push through these tax reforms in part to distract from their complete and utter failure at repealing Obamacare. They face myriad obstacles, however, not least a Democratic Party who’ll be keen to hammer home the point that the proposed changes favour the country’s wealthiest members, something that might not go down well with the President’s key base of support. | The Republicans want to push through these tax reforms in part to distract from their complete and utter failure at repealing Obamacare. They face myriad obstacles, however, not least a Democratic Party who’ll be keen to hammer home the point that the proposed changes favour the country’s wealthiest members, something that might not go down well with the President’s key base of support. |
| Regardless, the prospect of progress on one of Trump’s market-wooing election promises has helped the dollar keep hold of most of its daily growth. The greenback was further shored up by a decent durable goods order figure, which came in at 1.7% against the 1.0% forecast and the miserable -6.8% the month previous. | Regardless, the prospect of progress on one of Trump’s market-wooing election promises has helped the dollar keep hold of most of its daily growth. The greenback was further shored up by a decent durable goods order figure, which came in at 1.7% against the 1.0% forecast and the miserable -6.8% the month previous. |
| This all meant cable was pinned back at $1.34 after a 0.3% fall, with the euro suffering a 0.6% drop, taking the weary currency to a fresh, sub $1.175 one month nadir. Against the yen, which has been shaken in recent weeks by the North Korea situation, the dollar found even greater success, briefly hitting a 10 week peak of ¥113. | This all meant cable was pinned back at $1.34 after a 0.3% fall, with the euro suffering a 0.6% drop, taking the weary currency to a fresh, sub $1.175 one month nadir. Against the yen, which has been shaken in recent weeks by the North Korea situation, the dollar found even greater success, briefly hitting a 10 week peak of ¥113. |
| 3.34pm BST | 3.34pm BST |
| 15:34 | 15:34 |
| Ryanair is back in the headlines with its latest cancellations, and affected passengers are already having to rethink their plans. Henry McDonald writes: | Ryanair is back in the headlines with its latest cancellations, and affected passengers are already having to rethink their plans. Henry McDonald writes: |
| There is more airplane-related trouble for Northern Ireland on top of the Boeing versus Bomdardier battle and it comes in the shape of Rynair. | There is more airplane-related trouble for Northern Ireland on top of the Boeing versus Bomdardier battle and it comes in the shape of Rynair. |
| The budget airline has announced on Wednesday afternoon that it is suspending its Belfast to Gatwick route from November to March. The Belfast-Gatwick route is Ryanair’s most popular airlink to Britain in Northern Ireland. | The budget airline has announced on Wednesday afternoon that it is suspending its Belfast to Gatwick route from November to March. The Belfast-Gatwick route is Ryanair’s most popular airlink to Britain in Northern Ireland. |
| Among those affected by the four month cancellation of flights is former Blue Peter presenter Zoe Salmon who tweeted today that her flight had been cancelled. A West Belfast choral society from the parish of St Agnes’s will have to change their 60th anniversary bash in London in November. | Among those affected by the four month cancellation of flights is former Blue Peter presenter Zoe Salmon who tweeted today that her flight had been cancelled. A West Belfast choral society from the parish of St Agnes’s will have to change their 60th anniversary bash in London in November. |
| And here is a list of the affected routes: | And here is a list of the affected routes: |
| 3.31pm BST | 3.31pm BST |
| 15:31 | 15:31 |
| Back with Bombardier, and Ulster Unionist peer Lord Empey, vice chairman of the All Party Parliamentary Group on Aerospace, has slammed Boeing for “bully boy tactics” and said the disputed subsidy was in fact a loan: | Back with Bombardier, and Ulster Unionist peer Lord Empey, vice chairman of the All Party Parliamentary Group on Aerospace, has slammed Boeing for “bully boy tactics” and said the disputed subsidy was in fact a loan: |
| The launch aid that was provided to Bombardier which came via Treasury is repayable on the basis of royalties from sales so it is effectively a loan. Throughout my time as DETI and DEL Minister I am content that all transactions with Bombardier were consistent with EU State Aid rules. | The launch aid that was provided to Bombardier which came via Treasury is repayable on the basis of royalties from sales so it is effectively a loan. Throughout my time as DETI and DEL Minister I am content that all transactions with Bombardier were consistent with EU State Aid rules. |
| In the United States both cities and states give very substantial tax incentives and breaks to Boeing and other manufacturers. The majority of the C Series aircraft, by value, is actually produced in the US like the engine and avionics to name but two. | In the United States both cities and states give very substantial tax incentives and breaks to Boeing and other manufacturers. The majority of the C Series aircraft, by value, is actually produced in the US like the engine and avionics to name but two. |
| What I see the core of this dispute being, given that Boeing did not even tender for the Delta Airlines contract, is an attempt by Boeing – and in Europe, Airbus – to suffocate Bombardier. It is bully boy tactics. | What I see the core of this dispute being, given that Boeing did not even tender for the Delta Airlines contract, is an attempt by Boeing – and in Europe, Airbus – to suffocate Bombardier. It is bully boy tactics. |
| The manufacturing of the C Series sees a dramatic increase in efficiency and a reduction in fuel consumption that would mean when oil prices rise the plane becomes much more significant. It is not the current version of the plane that is the target – it is the long term project and what flows from it that has got Boeing in particular so aggravated. | The manufacturing of the C Series sees a dramatic increase in efficiency and a reduction in fuel consumption that would mean when oil prices rise the plane becomes much more significant. It is not the current version of the plane that is the target – it is the long term project and what flows from it that has got Boeing in particular so aggravated. |
| 3.14pm BST | 3.14pm BST |
| 15:14 | 15:14 |
| In the markets, shares are edging higher but investors remain cautious thanks to the continuing tensions between North Korea and the US and ahead of Donald Trump’s latest tax proposals. | In the markets, shares are edging higher but investors remain cautious thanks to the continuing tensions between North Korea and the US and ahead of Donald Trump’s latest tax proposals. |
| The dollar is moving higher following the hints from Federal Reserve chair Janet Yellen that US interest rates could rise again as early as December. In turn that has helped lift European markets as a weaker pound and euro gives a boost to exporters. | The dollar is moving higher following the hints from Federal Reserve chair Janet Yellen that US interest rates could rise again as early as December. In turn that has helped lift European markets as a weaker pound and euro gives a boost to exporters. |
| The FTSE 100 is currently up 0.44%, Germany’s Dax is 0.57% higher and France’s Cac has climbed 0.34%. | The FTSE 100 is currently up 0.44%, Germany’s Dax is 0.57% higher and France’s Cac has climbed 0.34%. |
| On Wall Street, the Dow Jones Industrial Average is 0.13% better. Earlier US durable goods orders climbed by 1.7% in August, better than the 1% analysts had been expecting. | On Wall Street, the Dow Jones Industrial Average is 0.13% better. Earlier US durable goods orders climbed by 1.7% in August, better than the 1% analysts had been expecting. |
| Lukman Otunuga, research analyst at FXTM, said: | Lukman Otunuga, research analyst at FXTM, said: |
| A sense of anticipation can be felt across the financial markets ahead of President Trump’s tax proposal in Indiana later today. Although some information has been leaked that corporate tax may be lowered to 20% from 35%, market players are still likely to closely scrutinise the speech for further details on tax reforms. If legislation is passed this year, this should boost sentiment towards the US economy and support the Dollar further. | A sense of anticipation can be felt across the financial markets ahead of President Trump’s tax proposal in Indiana later today. Although some information has been leaked that corporate tax may be lowered to 20% from 35%, market players are still likely to closely scrutinise the speech for further details on tax reforms. If legislation is passed this year, this should boost sentiment towards the US economy and support the Dollar further. |
| 2.56pm BST | 2.56pm BST |
| 14:56 | 14:56 |
| Back with the reports that Wolfgang Schäuble is stepping down as German finance minister: | Back with the reports that Wolfgang Schäuble is stepping down as German finance minister: |
| Schaeuble as president of parliament means exit from finance ministry by 24 October, at the latest. Far before coalition talks will be over. https://t.co/GMr8dGZE8m | Schaeuble as president of parliament means exit from finance ministry by 24 October, at the latest. Far before coalition talks will be over. https://t.co/GMr8dGZE8m |