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Oman’s oil minister thinks President Donald Trump has given OPEC some undue flak. But echoing other Gulf ministers, Mohammed bin Hamad al-Rumhi stressed his desire to steer clear of political animosity with the American leader, appearing keen to give him the benefit of the doubt.

“Sometimes he hasn’t been fair,” al-Rumhi told CNBC’s Hadley Gamble while at the Atlantic Council’s Global Energy Forum in Abu Dhabi. “I’m sure he has good intention too, he thinks he is representing the people of the U.S. and he thinks this is the way to do it.”

“Nobody wants volatility, I am sure Trump doesn’t want volatility, because volatility is difficult to manage,” he said. Trump has spent months vocally criticizing the 14-member cartel for its management of oil output, urging the group to keep the taps open and oil prices low. “OPEC is ripping us off,” Trump said in a tweet last October.

In December, OPEC members along with Russia reached an agreement to cut their crude production by 1.2 million barrels of oil per day from the market in order to stem the fall in prices, something that further drew Trump’s ire.

“Unfortunately there are politics, but sometimes the politics forces people to go to the social media or to CNBC to present their case. And that is the reality of today,” the minister said.

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Cargo sales and aircraft orders may be pointing to recession

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Two indicators in the aviation industry may be pointing to a economic downturn: declining demand for air cargo and a “peak” in aircraft orders last year, according to the executive chairman of CAPA Centre for Aviation.

Speaking to CNBC’s “Squawk Box” on Monday, Peter Harbison explained that cargo demand is “typically seen as a forward indicator of … not just the airline industry, but where the economy generally is heading.”

“Cargo is now declining fairly steeply, which suggests that the economy … is not going to look so good,” Harbison said.

As the world’s two largest economies remain deadlocked in a dispute over trade and technology, fears of a global recession have emerged. 

Demand in global air freight markets fell by 4.7% as compared to the same period last year, according to the International Air Transport Association.

Trade uncertainties — triggered by Brexit, as well as tariff tensions between the U.S. and China — contributed to declining new export orders and the weakness is likely to persist in the coming months, according to IATA, the global trade association for airlines.

While there was a surge in demand for cargo about six to nine months ago — which gave “some kind of optimism” — Harbison maintained that the increase may just be a “one-off surge.”

Visitors inspect a model Airbus SE A380 aircraft in an exhibition center at the aircraft maker’s factory in Toulouse, France, on Wednesday, March 20, 2019.  Photographer: Balint Porneczi/Bloomberg via Getty Images

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The “peak” in aircraft orders in 2018 may also be another indicator of a slowing global economy, Harbison said.

“Leaving aside the impact of grounding the Maxes — assuming that will start to be rectified within the next 6 months at least — I think we probably did see a peak in aircraft orders last year, which unfortunately, generally, cyclically seems to precede the year when things turn down a bit,” he said.

Boeing’s best-selling plane, the 737 Max, has been grounded since mid-March after two deadly crashes of their 737 Max airplanes, and the company isn’t expected to announce any orders of the plane.

The Paris Air Show was also supposed to set the stage for Boeing to reveal that it will offer a highly anticipated new aircraft, but analysts say the company has likely shelved those plans against the backdrop of safety concerns.

— CNBC’s Leslie Josephs contributed to this report.

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Deutsche Bank to set up 50 billion euro bad bank: FT

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Deutsche Bank is planning to overhaul its trading operations by creating a “bad bank” to hold tens of billions of euros of assets and shrinking or shutting its U.S. equity and trading businesses, the Financial Times reported on Sunday. 

The bad bank would house or sell assets valued at up to 50 billion euros ($56.06 billion)- after adjusting for risk – and comprise mainly long-dated derivatives, the FT reported, citing four people briefed on the plan.

Statues stand outside a Deutsche Bank AG branch in Frankfurt, Germany.

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With the creation of the bad bank, Chief Executive Officer Christian Sewing is shifting the German lender away from investment banking and focusing on transaction banking and private wealth management, the newspaper said.

As part of the restructuring, the lender’s equity and rates trading units outside continental Europe will be shrunk or closed entirely, the report said. 

The bank is planning cuts at its U.S. equities business, including prime brokerage and equity derivatives, to win over shareholders unhappy about its performance, four sources familiar with the matter told Reuters in May.

“As we said at the AGM on May 23, Deutsche Bank is working on measures to accelerate its transformation so as to improve its sustainable profitability. We will update all stakeholders if and when required,” Deutsche Bank said in an emailed statement on Sunday in response to the FT report.

Sewing could announces announce the changes along with Deutsche Bank’s half-year results in late July, the FT reported.

On the back of the report, shares of the German-listed lender rose more than 3 percent on Monday morning.

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Lufthansa lowers 2019 profit forecast, cites price competition

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A Boeing 747-8 Lufthansa airplane takes off from the Airport Tegel in Berlin.

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German airline Lufthansa on Sunday lowered its profit outlook for the full year 2019, citing intense competition from low-cost rivals over prices in Europe.

The group’s adjusted earnings before interest and taxes (EBIT) margin was forecast at between 5.5% and 6.5%, down from 6.5% to 8% previously, Lufthansa said in a statement.

This would entail a pretax EBIT of between 2 billion euros and 2.4 billion euros ($2.24 billion-$2.69 billion), compared with the previously targeted 2.4 billion euros to 3 billion euros, it said.

“Yields in the European short-haul market, in particular in the group’s home markets Germany and Austria, are affected by sustained overcapacities caused by carriers willing to accept significant losses to expand their market share,” it said.

It also cited overcapacities and high jet fuel costs, which it said could exceed last year’s figure by 550 million euros, despite a recent fall in crude oil prices.

Lufthansa said it would make a provision for a tax risk to the amount of 340 million euros in its first half 2019 accounts, relating to an open tax matter in Germany originating in the years between 2001 and 2005.

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