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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
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| UK government threatens retaliation against Boeing in Bombardier tariff row - business live | UK government threatens retaliation against Boeing in Bombardier tariff row - business live |
| (35 minutes later) | |
| 2.11pm BST | |
| 14:11 | |
| Lunchtime reading: UK tiptoes down Global Competitive league | |
| A decade after the financial crisis, the global economy is still vulnerable to another crash. | |
| So says the World Economic Forum today, in a new report into global competitiveness. | |
| WEF warns that some banks are actually less sound than they were before the credit crunch struck in 2007, triggering the near-collapse of the financial system. | |
| The Fund says: | |
| After a long period of low growth following the global financial crisis, the world economy appears to have picked up speed. This is welcome news. Yet despite this gradual improvement, policymakers in many countries are concerned about the prospects for longterm economic development. | |
| This is partly because the current expansion appears to be cyclical, bolstered by exceptionally low interest rates rather than by the fundamental drivers of structural growth. Productivity improvements appear to remain sluggish and are not expected to return to the levels experienced in past decades. | |
| The report also showed that Britain has dropped to 8th, from 7th, in WEF’s list of competitiveness. | |
| WEF says Britain’s ‘macroeconomic environment’ is a concern (that’s a reference to the UK’s growth, inflation and unemployment situation). It warns that this situation could deteriorate further after the UK has left the European Union. | |
| The United Kingdom (UK) (8th) falls one spot. This drop does not yet reflect the outcome of the Brexit negotiations, which is likely to further undermine the country’s competitiveness. | |
| Currently the country performs very well on technological readiness and the sophistication of its business sector (4th and 7th overall). | |
| Its macroeconomic environment remains challenging (68th) and could become an important constraint in the future as the timeline for a reduction of the fiscal deficit is repeatedly pushed back. | |
| The full report is online here. | |
| Updated | |
| at 2.12pm BST | |
| 1.44pm BST | |
| 13:44 | |
| Corbyn: May must act to save thousands of jobs | |
| Labour leader Jeremy Corbyn has just told his party conference in Brighton that the tariffs imposed on Bombardier C Series planes threaten “thousands of jobs”. | |
| Corbyn says that Theresa May must use Britain’s special relationship with America to protect the company’s workers in Northern Ireland. | |
| Thousands of jobs are now at stake, thousands of jobs at risk | |
| A Prime minister betting our eocnomic future on a deregulated trade deal with the US might want to take a moment to explain how 220% tarifsf are going to boost our exports from this country. | |
| Corbyn says "1000s jobs now at stake" at Bombardier "as the PM gambles our future on a trade deal with US" | |
| 1.36pm BST | 1.36pm BST |
| 13:36 | 13:36 |
| Are you one of the 400,00 people whose Ryanair flight has just been cancelled? | Are you one of the 400,00 people whose Ryanair flight has just been cancelled? |
| If so, Hannah Maundrell, Editor in Chief of money.co.uk, has some advice: | If so, Hannah Maundrell, Editor in Chief of money.co.uk, has some advice: |
| “It’s so disappointing for Ryanair passengers whose flights have been cancelled, even with more notice this time it’s still seriously frustrating. Ryanair are still in a mess here, but you shouldn’t be left out of pocket. | “It’s so disappointing for Ryanair passengers whose flights have been cancelled, even with more notice this time it’s still seriously frustrating. Ryanair are still in a mess here, but you shouldn’t be left out of pocket. |
| “If your flight has been cancelled, ask for a refund. You should get your money back within 7 days or given an alternative flight. This should also apply to connecting flights you miss as a result, as long as they were booked together. | “If your flight has been cancelled, ask for a refund. You should get your money back within 7 days or given an alternative flight. This should also apply to connecting flights you miss as a result, as long as they were booked together. |
| “Aside from this, generally if your flight is delayed by over 3 hours you can claim compensation for the inconvenience. Cancellation amounts vary from €250 to €600 depending on your flight. | “Aside from this, generally if your flight is delayed by over 3 hours you can claim compensation for the inconvenience. Cancellation amounts vary from €250 to €600 depending on your flight. |
| “If your other travel plans are impacted, look to your travel insurance for cover. This is when having a decent policy can really come in handy.” | “If your other travel plans are impacted, look to your travel insurance for cover. This is when having a decent policy can really come in handy.” |
| 1.24pm BST | 1.24pm BST |
| 13:24 | 13:24 |
| Ryanair forced to cancel more flights | Ryanair forced to cancel more flights |
| Wow! Breaking away from Bombardier.... budget airline Ryanair has just extended its flight cancellation programme, affecting an additional 400,000 passengers. | Wow! Breaking away from Bombardier.... budget airline Ryanair has just extended its flight cancellation programme, affecting an additional 400,000 passengers. |
| Ryanair is cancelling 34 routes until next year, in a fresh attempt to tackle its rostering crisis that has left it without enough pilots. | Ryanair is cancelling 34 routes until next year, in a fresh attempt to tackle its rostering crisis that has left it without enough pilots. |
| Those affected are being offered a refund or an alternative flight. | Those affected are being offered a refund or an alternative flight. |
| It’s a big u-turn; just last week, CEO Michael O’Leary said he hoped to avoid further cancellations. | It’s a big u-turn; just last week, CEO Michael O’Leary said he hoped to avoid further cancellations. |
| Ryanair has just suspended 34 routes until next year: Here's the full list https://t.co/vFz0qJesPo pic.twitter.com/Zz9UKhLpw5 | Ryanair has just suspended 34 routes until next year: Here's the full list https://t.co/vFz0qJesPo pic.twitter.com/Zz9UKhLpw5 |
| 1.04pm BST | 1.04pm BST |
| 13:04 | 13:04 |
| UK defence secretary warns Boeing of possible retaliation | UK defence secretary warns Boeing of possible retaliation |
| The UK government is rolling out the big guns against Boeing, with the defence secretary dropping an unsubtle hint that Britain could retaliate. | The UK government is rolling out the big guns against Boeing, with the defence secretary dropping an unsubtle hint that Britain could retaliate. |
| Sir Michael Fallon has told reporters in Belfast that the UK’s current relationship with Boeing could be damaged by the row. He even suggests that London might decline to buy Boeing products in future: | Sir Michael Fallon has told reporters in Belfast that the UK’s current relationship with Boeing could be damaged by the row. He even suggests that London might decline to buy Boeing products in future: |
| Fallon says: | Fallon says: |
| “This is not the behaviour we expect from Boeing and it could indeed jeopardise our future relationship with them. | “This is not the behaviour we expect from Boeing and it could indeed jeopardise our future relationship with them. |
| “Boeing has significant defence contracts with us and still expects to win further contracts. Boeing wants and we want a long term partnership but that has to be two-way. | “Boeing has significant defence contracts with us and still expects to win further contracts. Boeing wants and we want a long term partnership but that has to be two-way. |
| Boeing is an important investor in the United Kingdom and an important employer in the United Kingdom but we would prefer this kind of issue to be settled on a negotiated basis. | Boeing is an important investor in the United Kingdom and an important employer in the United Kingdom but we would prefer this kind of issue to be settled on a negotiated basis. |
| “This is not the kind of behaviour that we expect from along-term partner and I’ve made that very clear to Boeing. | “This is not the kind of behaviour that we expect from along-term partner and I’ve made that very clear to Boeing. |
| (Thanks to Reuters for the quotes). | (Thanks to Reuters for the quotes). |
| Defence Sec Michael Fallon says Bombardier decision could jeopardise the British Government's future relationship with Boeing | Defence Sec Michael Fallon says Bombardier decision could jeopardise the British Government's future relationship with Boeing |
| Boeing’s military arm produces a wide range of equipment, including Apache attack helicopters, Chinook transport helicopters and surveillance planes. | Boeing’s military arm produces a wide range of equipment, including Apache attack helicopters, Chinook transport helicopters and surveillance planes. |
| As this infographic shows, Boeing also employs or supports more than 10,000 jobs in the UK; any tit-for-tat retaliation could affect them. | As this infographic shows, Boeing also employs or supports more than 10,000 jobs in the UK; any tit-for-tat retaliation could affect them. |
| Updated | Updated |
| at 1.05pm BST | at 1.05pm BST |
| 12.37pm BST | 12.37pm BST |
| 12:37 | 12:37 |
| Last night, Delta argued that Boeing’s case lacked merit, because it simply doesn’t make an aircraft that competes directly with Bombardier’s C Series: | Last night, Delta argued that Boeing’s case lacked merit, because it simply doesn’t make an aircraft that competes directly with Bombardier’s C Series: |
| Delta Air Lines comment on the ITC decision.https://t.co/3UsUHNClnz pic.twitter.com/qoGvaZc3TW | Delta Air Lines comment on the ITC decision.https://t.co/3UsUHNClnz pic.twitter.com/qoGvaZc3TW |
| Stéphane Lessard, the consul general of Canada in Denver, warned that imposing steep tariffs on Bombardier could backfire. | Stéphane Lessard, the consul general of Canada in Denver, warned that imposing steep tariffs on Bombardier could backfire. |
| Very rich 4 #Boeing 2 claim it was harmed by Delta's purchase of C Series airplanes from #Bombardier when it didn't even bid 4 the contract! https://t.co/fkGCRgq7rw | Very rich 4 #Boeing 2 claim it was harmed by Delta's purchase of C Series airplanes from #Bombardier when it didn't even bid 4 the contract! https://t.co/fkGCRgq7rw |
| About 50% of Bombardier's C Series aircraft is US content. If production stops, thousands of US jobs could vanish, 2K jobs in Kansas alone! https://t.co/iSaKA21O71 | About 50% of Bombardier's C Series aircraft is US content. If production stops, thousands of US jobs could vanish, 2K jobs in Kansas alone! https://t.co/iSaKA21O71 |
| 12.33pm BST | 12.33pm BST |
| 12:33 | 12:33 |
| Here are some photos of Bombardier staff working on C Series aeroplane wings: | Here are some photos of Bombardier staff working on C Series aeroplane wings: |
| Updated | Updated |
| at 12.47pm BST | at 12.47pm BST |
| 12.30pm BST | 12.30pm BST |
| 12:30 | 12:30 |
| Henry McDonald | Henry McDonald |
| Back in Belfast, a member of the Northern Ireland Assembly has revealed he has family members employed at the Bombardier plant in East Belfast, and that he fears for their future job prospects. | Back in Belfast, a member of the Northern Ireland Assembly has revealed he has family members employed at the Bombardier plant in East Belfast, and that he fears for their future job prospects. |
| Chris Lyttle of the cross community Alliance Party is an East Belfast representative in the deadlocked Stormont Assembly. Lyttle said: | Chris Lyttle of the cross community Alliance Party is an East Belfast representative in the deadlocked Stormont Assembly. Lyttle said: |
| “This was an astounding ruling but it is important to remember it is only preliminary. The US International Trade Commission must now find as Boeing did not compete for the Delta contract awarded to Bombardier C Series and does not serve this market, no injury has occurred. | “This was an astounding ruling but it is important to remember it is only preliminary. The US International Trade Commission must now find as Boeing did not compete for the Delta contract awarded to Bombardier C Series and does not serve this market, no injury has occurred. |
| “I have constituents, friends and family employed by Bombardier and I am acutely aware of the concern that exists amongst staff. Alliance has already engaged on this issue with the most senior levels of the UK, US and Canadian Governments and we will continue to do so, to work to achieve a fair outcome and protect the thousands of jobs in our aerospace manufacturing sector and economy. | “I have constituents, friends and family employed by Bombardier and I am acutely aware of the concern that exists amongst staff. Alliance has already engaged on this issue with the most senior levels of the UK, US and Canadian Governments and we will continue to do so, to work to achieve a fair outcome and protect the thousands of jobs in our aerospace manufacturing sector and economy. |
| “This ruling could have severe implication not only for jobs in NI but for international trade with the United States, particularly in the aerospace sector. | “This ruling could have severe implication not only for jobs in NI but for international trade with the United States, particularly in the aerospace sector. |
| 12.20pm BST | 12.20pm BST |
| 12:20 | 12:20 |
| Business secretary: We'll work 'hand in glove' with Canada | Business secretary: We'll work 'hand in glove' with Canada |
| The UK government is turning up the pressure on Boeing. | The UK government is turning up the pressure on Boeing. |
| Business secretary Greg Clark says that the US planemaker’s complaint against Bombardier is simply “unjustified”, and vowed to work with Canada to reverse last night’s preliminary ruling. | Business secretary Greg Clark says that the US planemaker’s complaint against Bombardier is simply “unjustified”, and vowed to work with Canada to reverse last night’s preliminary ruling. |
| We will work completely hand in glove with the Canadian government to get this overturned. | We will work completely hand in glove with the Canadian government to get this overturned. |
| Clark also believes that the final ruling in this dispute, due next year, should be in Bombardier’s favour. | Clark also believes that the final ruling in this dispute, due next year, should be in Bombardier’s favour. |
| The Trade Commission needs to look to see if there’s been any detriment to Boeing.. There hasn’t been, as this aircraft doesn’t compete with Boeing. | The Trade Commission needs to look to see if there’s been any detriment to Boeing.. There hasn’t been, as this aircraft doesn’t compete with Boeing. |
| 12.04pm BST | 12.04pm BST |
| 12:04 | 12:04 |
| 11.58am BST | 11.58am BST |
| 11:58 | 11:58 |
| Labour MP Conor McGinn, who was born and brought up in Northern Ireland, says the Bombardier dispute shows that Britain is stronger within the European Union. | Labour MP Conor McGinn, who was born and brought up in Northern Ireland, says the Bombardier dispute shows that Britain is stronger within the European Union. |
| “Hard Brexit campaigners in Government keep promising that Britain will get a great new trade deal with the US after we leave the EU. That’s how they justify their ideological choice to leave the Single Market and Customs Union. | “Hard Brexit campaigners in Government keep promising that Britain will get a great new trade deal with the US after we leave the EU. That’s how they justify their ideological choice to leave the Single Market and Customs Union. |
| “But now we see the US Government taking a decision which is totally against our economic interests and could put thousands of jobs at risk across the UK, especially in Northern Ireland. | “But now we see the US Government taking a decision which is totally against our economic interests and could put thousands of jobs at risk across the UK, especially in Northern Ireland. |
| “We can’t rely on a good trade deal with the US being agreed after Brexit. To protect jobs and our economy, we need to stay in the Single Market and Customs Union to preserve trade with our largest market – the EU.” | “We can’t rely on a good trade deal with the US being agreed after Brexit. To protect jobs and our economy, we need to stay in the Single Market and Customs Union to preserve trade with our largest market – the EU.” |
| 11.58am BST | 11.58am BST |
| 11:58 | 11:58 |
| Paul Adams, head of aerospace at management consultancy, Vendigital, reckons that the Bombardier-Boeing dispute will take some time to resolve: | Paul Adams, head of aerospace at management consultancy, Vendigital, reckons that the Bombardier-Boeing dispute will take some time to resolve: |
| “Boeing’s legal challenge may in part be influenced by Trump’s ‘America First’ policy. The US manufacturer could be seeking to test the new administration’s resolve when it comes to protecting US jobs against foreign competitors selling to US customers. | “Boeing’s legal challenge may in part be influenced by Trump’s ‘America First’ policy. The US manufacturer could be seeking to test the new administration’s resolve when it comes to protecting US jobs against foreign competitors selling to US customers. |
| “As history shows, trade disputes in the aerospace sector can become protracted - the Boeing / Airbus dispute ultimately had to be resolved by the World Trade Organisation. It is likely that Bombardier will appeal the US court’s decision, before the final hearing in 2018. | “As history shows, trade disputes in the aerospace sector can become protracted - the Boeing / Airbus dispute ultimately had to be resolved by the World Trade Organisation. It is likely that Bombardier will appeal the US court’s decision, before the final hearing in 2018. |
| 11.43am BST | 11.43am BST |
| 11:43 | 11:43 |
| Manufacturing Northern Ireland, a trade body, have blasted the US tariff decision -- and warned that Britain could be more exposed to such rulings after it leaves the EU: | Manufacturing Northern Ireland, a trade body, have blasted the US tariff decision -- and warned that Britain could be more exposed to such rulings after it leaves the EU: |
| .@ManufacturingNI says @CommerceGov ruling on @Bombardier is "nonsense" + an "opportunistic punt." Says it doesn't bode well for Brexit pic.twitter.com/uEgFRhh9sB | .@ManufacturingNI says @CommerceGov ruling on @Bombardier is "nonsense" + an "opportunistic punt." Says it doesn't bode well for Brexit pic.twitter.com/uEgFRhh9sB |
| 11.30am BST | 11.30am BST |
| 11:30 | 11:30 |
| In other news: UK retail sales have grown at their fastest pace in two years this. | In other news: UK retail sales have grown at their fastest pace in two years this. |
| That’s according to the latest CBI Distributive Trades Survey, which suggests consumers are still spending despite rising inflation and weak wages. It’s a volatile survey, though, so.... | That’s according to the latest CBI Distributive Trades Survey, which suggests consumers are still spending despite rising inflation and weak wages. It’s a volatile survey, though, so.... |
| CBI retail sales balance hit a two year high in Sep. Truth is it's a pretty erratic indicator though... pic.twitter.com/htHerBrQk0 | CBI retail sales balance hit a two year high in Sep. Truth is it's a pretty erratic indicator though... pic.twitter.com/htHerBrQk0 |
| 11.17am BST | 11.17am BST |
| 11:17 | 11:17 |
| The DUP’s Sir Jeffrey Donaldson has repeated his warning that Boeing could be hit by retaliatory sanctions. | The DUP’s Sir Jeffrey Donaldson has repeated his warning that Boeing could be hit by retaliatory sanctions. |
| Donaldson, who is the party’s chief whip, tells Sky News: | Donaldson, who is the party’s chief whip, tells Sky News: |
| Boeing do sell a lot of aircraft to the UK, and to Canada, and to other countries. The US government has to weigh that in the balance as well. | Boeing do sell a lot of aircraft to the UK, and to Canada, and to other countries. The US government has to weigh that in the balance as well. |
| We think there is still a strong case to be made for Bombardier, and believe that common sense will prevail in the end. | We think there is still a strong case to be made for Bombardier, and believe that common sense will prevail in the end. |
| Q: So you would support tit-for-tat sanctions? | Q: So you would support tit-for-tat sanctions? |
| Canada has made clear that they will impose import restrictions against Boeing, Donaldson replies. It’s too early to say what the UK should do, he adds. | Canada has made clear that they will impose import restrictions against Boeing, Donaldson replies. It’s too early to say what the UK should do, he adds. |
| He also disputes the suggestion that the row has anything to do with Brexit, pointing out that Britain is still in the EU today. | He also disputes the suggestion that the row has anything to do with Brexit, pointing out that Britain is still in the EU today. |
| I can’t believe that the US president wants to take an entirely protectionist approach against its closely ally, Donaldson adds. | I can’t believe that the US president wants to take an entirely protectionist approach against its closely ally, Donaldson adds. |
| Q: What are the implications for Northern Ireland if this preliminary decision is upheld? | Q: What are the implications for Northern Ireland if this preliminary decision is upheld? |
| It would be a “devastating blow” to Bombardier if they were priced out of the US market, and we would struggle to keep the jobs in Belfast, Donaldson warned. | It would be a “devastating blow” to Bombardier if they were priced out of the US market, and we would struggle to keep the jobs in Belfast, Donaldson warned. |
| Updated | Updated |
| at 12.09pm BST | at 12.09pm BST |
| 11.11am BST | 11.11am BST |
| 11:11 | 11:11 |
| Labour’s shadow industrial strategy minister, Chi Onwurah, has also heavily criticised Theresa May over the Bombardier tariff ruling. | Labour’s shadow industrial strategy minister, Chi Onwurah, has also heavily criticised Theresa May over the Bombardier tariff ruling. |
| Onwurah told Sky News: | Onwurah told Sky News: |
| It’s a damning indictment of the criminal negligence and complacency of Theresa May and her government, and a sign of their entire lack of international negotiating skills which bodes really badly for our post-Brexit negotiations. | It’s a damning indictment of the criminal negligence and complacency of Theresa May and her government, and a sign of their entire lack of international negotiating skills which bodes really badly for our post-Brexit negotiations. |
| 11.01am BST | 11.01am BST |
| 11:01 | 11:01 |
| Bombardier bonds tumble after tariff ruling | Bombardier bonds tumble after tariff ruling |
| Worryingly, the value of Bombardier’s corporate bonds has fallen this morning. | Worryingly, the value of Bombardier’s corporate bonds has fallen this morning. |
| That means traders believe the risk that the Canadian firm defaults on its debts has risen. | That means traders believe the risk that the Canadian firm defaults on its debts has risen. |
| Bloomberg has the details: | Bloomberg has the details: |
| Bombardier Inc.’s euro-denominated bonds maturing in 2021 have declined the most in more than two years after the U.S. imposed import duties of 220 percent on the company’s C-series plane, threatening to upend deliveries of more than $5 billion to Delta Air Lines Inc. next year. | Bombardier Inc.’s euro-denominated bonds maturing in 2021 have declined the most in more than two years after the U.S. imposed import duties of 220 percent on the company’s C-series plane, threatening to upend deliveries of more than $5 billion to Delta Air Lines Inc. next year. |
| The Canadian aircraft and train manufacturer’s senior unsecured notes are currently down by more than seven price points at 99.963, according to Bloomberg prices at 10am London time. The notes had already fallen 2.2 points on Tuesday -- the same day that competitors Siemens AG and Alstrom SA agreed to join their rail businesses. | The Canadian aircraft and train manufacturer’s senior unsecured notes are currently down by more than seven price points at 99.963, according to Bloomberg prices at 10am London time. The notes had already fallen 2.2 points on Tuesday -- the same day that competitors Siemens AG and Alstrom SA agreed to join their rail businesses. |
| Bombardier bonds tumble as U.S. slaps import duties on C-Series https://t.co/YCk9a5EuVk via @aragaomarianna pic.twitter.com/ZaSPLIUsEK | Bombardier bonds tumble as U.S. slaps import duties on C-Series https://t.co/YCk9a5EuVk via @aragaomarianna pic.twitter.com/ZaSPLIUsEK |
| That bond has been one of the top 10 most actively traded in the European secondary bond market, according to MarketAxess subsidiary, Trax. | That bond has been one of the top 10 most actively traded in the European secondary bond market, according to MarketAxess subsidiary, Trax. |