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Friday, May 5, 2017

China has 55 airlines; US unemployment at lowest in 10 years; Buffett annual meeting is on Saturday

Profitable Moment
 

Francais? Bien Sur!

Jean Claude Juncker, president of the European Commission, can't help being incendiary when it comes to Brexit. Speaking to a conference in Italy, Juncker said he would only speak in French because: "Slowly, but surely, English is losing importance in Europe." The charming comment was a gratuitous sideswipe guaranteed to rile the British. He has a habit of doing this. 
 
It was probably Juncker's staff that leaked derogatory comments he made following the disastrous No. 10 dinner, saying Theresa May was living in a parallel galaxy. Juncker followed with the offensive bon mot, saying of dinner, "It was excellent… but I am not talking about the food." Charming.
 
Juncker and the British don't like each other; not since David Cameron was the only EU leader to oppose Juncker's re-appointment as commission president.

Such tart comments, are not helpful. That's why Donald Tusk, president of the European Council has been admonishing everyone to cut back on the inflammatory rhetoric ahead of Brexit negotiatons.
 
Clearly his Commission counterpart, Juncker, wasn't listening.

Then again, maybe French isn't the language of choice either given the anger lobbed at the EU by one of the finalists in this weekend's presidential elections in France. 

 

-Richard.Quest@cnn.com 

What's new... what's next
 

By Matt Egan, Patrick Gillespie, Julia Horowitz and Paul R. La Monica of CNNMoney

1. US unemployment hits decade low at 4.4%

The sun didn't shine in New York City for much of April, but it beamed across the US job market. America added 211,000 jobs last month and unemployment hit 4.4%, its lowest point since May 2007. Job gains were across the board -- from health care to manufacturing to business services. And fewer Americans were working part-time jobs but wanted full-time jobs -- one of the chronic problems in the economy in recent years. Of course, jobs aren't the only part of the economy. Paul La Monica takes a wider look at how the world's largest economy is actually performing in the Trump era. 

2. PGA chief: Trump is good for golf

Trump gets a lot of grief for spending lots of time at the golf course. Today was the 21st day that the president spent at one of his golf clubs since taking office. But Peter Bevacqua definitely doesn't mind. The head of the PGA of America believes Trump's love of golf is good for the sport. Bevacqua even suggested Trump's passion for golf could lead to more publicly-funded courses being built in America. 

3. 10 states could lose big from NAFTA revamp

Republican senators are warning President Trump: Be very careful on NAFTA. That's because seven of the 10 states that export the most to Mexico and Canada voted for Trump, underscoring just how much is at stake with any deal to rework the trade deal. According to The Washington Post, Agriculture Secretary Sonny Perdue walked into Trump's office with a map of the US highlighting the places that would be hardest hit. Perdue noted how many of them voted for Trump. Trump was likely staring at Ohio, Pennsylvania and Michigan. Those three swing states that sealed his victory are among the top 10 states that depend on NAFTA.

4. Inside China's massive aviation market

China's first large jetliner took its maiden flight on Friday, performing a series of test maneuvers near Shanghai. The successful first flight is a huge deal for China and an indication that Boeing and Airbus will eventually face a new competitor in a key aviation hub. The number of trips made last year increased by 12% over 2015, and analysts predict China will surpass the U.S. as the world's largest commercial aviation market by 2030. 

5. Quick Takes:

GE CEO Jeff Immelt says protectionism makes the US look weak

Brexit: UK may lose $1.5 trillion business. Goldman Sachs says London to pay

Investors sing the Big Blues after Warren Buffett dumps big chunk of IBM stock

Oil prices drop below $45 -- and energy stocks are the biggest losers of 2017

ChemChina seals $43B deal for Swiss pesticides and seeds giant Syngenta

Best Kentucky Derby bet? Not a horse. Shares of racetrack Churchill Downs

6. What's next:

Warren Buffett and the Woodstock of Capitalism: Tens of thousands of Berkshire Hathaway shareholders will descend upon Omaha on Saturday for the company's annual meeting. Buffett will get peppered with questions on everything from his continued support for Wells Fargo to the state of the Trump rally and who will follow in Buffett's footsteps. If you won't be there in person, don't worry: the event will be livestreamed by Yahoo Finance.

The battle to lead France: Round two of France's presidential election is Sunday. An upset by Marine Le Pen over Emmanuel Macron could rock global markets. Investors have been betting on a loss for Le Pen, who has pushed for ditching the euro. That outcome could ease concern about the future of the currency bloc. But then again, many investors thought Brexit wouldn't happen and Hillary Clinton would be president.

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