manus: good morning from our middle east headquarters in dubai. i am manus cranny, annmarie hordern beside me in new york. it is "daybreak: europe." the u.k. takes another step out of lockdown amid concerns about the india variance. we get the take this hour.

stocks look for direction as a china adds more mixed economic data from the world's major economy. a big miss in retail sales still a standout figure, and creating a giant -- at&t poised to spend out media assets and merge them with discovery. it is a bloomberg's group. a warm welcome to the show, 6:00 a.m. in london, the engines revving up on the runway, and run of -- and one of those is ryanair. we have the numbers as the concerns about the india strain take hold across the u.k. ryanair loses 815 million euros, the guidance was a loss of 800-850. they are heavily curtailed in the first quarter in terms of the traffic, but looking since april suggests the recovery will begin. it's always about a forward-looking view. they see a strong recovery in

travel. the fleet of ryan airplanes waiting to take off. annmarie: we will be speaking to michael o'leary in about 30 minutes and you don't want to miss that interview with the ryanair ceo. one headline we need to bring up, they cannot provide meaningful full year 2020 guidance at this time. it makes sense given restrictions in europe and the u.k. in general. we need to see what michael o'leary has to say. in terms of data, i put the csx 300 up there, rarely china is shrugging off -- clearly china is shrugging off some of that data. but the asia-pacific is lower alongside u.s. equity futures even though on friday wall street closed higher. 10 year yield, 1.6%. the british, 140.85, it is u.k.

reopening day, but questions and currents -- and concerns persist on the indian variant. manus: another line, michael saying he cannot provide guidance into 2022 at this time, is it because of the variant? we will get to gatwick a little later on, that -- but the green list, you made the point that ryanair added seats to portugal, on the green list, but the holy grail of spain and greece are on the amber list so you still have to quarantine when you come home to the united kingdom. one could say that portugal will not save the summer either for european holiday season or indeed the discount airline. those questions to mr. o'leary in a short while. does he need to raise more capital? let's reset and talk about the agenda.

is inflation on a sleep over or ng to stay in perpetuity? annmarie: certainly. the minutes this week, potentially will we get any hints? joining us to break it down is the head of global market strategy at an investment firm. manus mentioned inflation, but i want to begin with what is happening in the u.k. today, a monumental day in the lockdown given is one of the biggest days in terms of the reopening, but the government is really offering a quite cautious tone, potentially june 21, complete lift off, that could be pushed back. is this a risk you have right now to the market? >> it is a consideration. i would not say it is a big risk at this point. we know the variants are circulating across europe, the

indian variant is circulating. it is a concern for the u.k. in particular due to a strategy of postponing the second shot of the vaccine, and they've been talking about bringing that forward to make sure more people get a second dose as quickly as possible and trying to ramp up vaccination efforts, despite how well they have done so for. i don't think, given it is the only country that has had this strategy and european cases continue to drop on the continent and vaccination continues to pick up, especially in the largest economies, we know it is not necessarily going to be a straight line up but we know we are going in the right direction. manus: always great to have you with us. let's step back for a moment, i am breaking indian numbers on an hourly basis before i joined you and annmarie. we are talking about japan and india on a daily basis. what do you fear more as the head of global markets -- the

virus variants or inflation? esty: at this point, inflation. just because i think the market reaction is likely to be stronger, as we saw last week with u.s. numbers. you get a big move. interestingly, the treasury yields did not move much considering the inflation print. it might be a case of we know it will be higher in the second quarter for sure, we know inflation will be higher a number of months. will it still be so high six or 12 months from now. it is maybe just waiting to see it until we see a bigger move higher. what we cannot ignore the situation in asia, either. we are getting more and more clusters. vaccination has been slower over there and it shows the global reopening is not happening quite yet, and despite that europe and

the u.s. are making good progress on vaccinations. we will have fits and starts. overall, i think it does show that investors are not overly optimistic, not overly complacent. there is something of a wall of worry to climate. we see negative headlines when the market comes off a couple of percentage points. there is still room on the upside given these underlying concerns and not everyone is too bullish yet. annmarie: it is very piecemeal when you look at reopening around the world. do you think reopening can stick or is it what the fed calls transitory? if it is transitory, how do you define that? esty: i think that will be the big question the next few months. i am in the fed camp, the transitory camp. there are a number of factors, pent up demand, very serious supply chain bottlenecks, a

little bit of disjointed and this in the reopening between where businesses are, where the economy is with the vaccination. the vaccinations and it up going a lot faster than anticipated, especially in the u.s. for me, six months from now, where will we stand? i think inflation will be retreating by then. i think until then, the fed is not going to worry either. if we get to october/november and we are still seeing these high prints, especially on tce, we will have a fed that has to worry a little bit. i also don't believe suddenly the fed will think oh no, this isn't transitory, we will hike three times in the next six months. they feel they are on a path that makes sense. at some point this summer, maybe jackson hole, they will talk about tapering, it will probably start at the beginning of 2022 and will gradually move toward hikes. even if inflation stays a little higher for a little longer, i

don't think they will mind. manus: the trigger to the movement from a transitory to slightly more permanent inflation could be in wages. i want to get your take on the risk of stagnation. bank of america says we will move from goldilocks to stagnation environment and we will hit peaks in fiscal and monetary stimulus, and accelerating earnings -- you would probably disagree that you don't see any stagflation. esty: expectations for growth will be very strong between this year and next. wages will go higher but they dropped sharply with the pandemic so there is still some room for recovery. the question is how quickly do they move back up and doesn't good inflation retreat in the meantime so the balance between the two ends up working back out

to where we were, around 2% for a number of years before the pandemic? i think at some point, the question of u.s. fiscal stimulus ending is going to come back. we have set for a while that regardless of what biden manages to achieve on infrastructure, this is going to be over 10 years and year by year it will not be that big a number. the impact on 2022 might not be that big just because it needs to ramp up and get organized, infrastructure deals need to get ready, is not just a question of sending checks in the mail. that question might come because we are closer to peak stimulus in the u.s. and we have this question of unemployment benefits that has been lingering that will probably end in september given how well the labor market is moving along. manus: ok. stay with us. esty dwek stays with ann marie

and myself. deadly humphrey joins us with the first word news. >> the u.s. joining other world powers in calling for an end to the violence in israel and the gaza strip. prime minister netanyahu is a the fighting will continue, saying israel will do whatever it takes for the security of its people. pressure on president biden to condemn israel. or than 190 people have died in gaza and 10 in israel. singapore is closing most in school classes because of a speck of virus cases, the highest number of infections in more than a year, including some currently unlinked. taiwan also facing a surge in untraceable infections not imposing rules as strict as some neighbors. there are fears it will stifle the economy growth. sources tell us at&t is planning to spin off its media business

and merge it with discovery. it is a surprise reversal for the company that spent $85 billion to acquire the asset less than three years ago. a deal may be announced as soon as this week, combining discoveries reality empire with hbo and others could create a formidable opponent to netflix and disney. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ann marie and manus? annmarie: thank you. just ahead, dana -- data on the chinese economy lacks estimates. this is bloomberg. ♪

annmarie: good morning. this is "daybreak: europe." china's economic recovery cooling down, consumer spending lagging estimates, retail sales grew more than expected. the national statistics bureau said the economy is still challenged by the pandemic and uneven global recovery. joining us is our asia correspondent. a few big messes here. csi 300 still chugging along ahead, but what does this mean for the pboc? >> as you mentioned, a pretty mixed set of numbers. as expected on the industrial side of the economy and fixed assets, doing ok, but the retail numbers was the big takeaway for a lot of observers today. as you mentioned, there was a mess in the forecast, it came in

at 17% and economists expected 25%. even when you know the extortion and look at the numbers on an average two basis, we also saw retail sales slowed in april. the interesting thing is economist wondering why is that the case because the virus in china has been under relative control of so many months at this stage and yet consumers are not fully back to where they were before the pandemic, despite that they can move around and are less restricted than other major economies we are seeing at the moment. the question mark will be is this great rebalancing happening or not, does china continue to rely on the manufacturing and export story? private sector investment is pushing ahead of government led investment, a positive sign, but the big hope this year was consumer would take over.

that is a little in question now. some economists are talking about even a peak in china's recovery, and a slower paced expansion headed into the year. not a hard landing, still a robust recovery, but a little cooler than might have been expected at the start of the year. manus: the voices of reason coming to bear. always great to get your perspective, our chief asia economics correspondent. esty dwek is with us. peak china growth, when you look at the numbers missing dramatically, the fabled rebalancing and retail saving the economy in china might not be bearing out. are you concerned we are seeing possibility of peak china growth at the moment? esty: i am more from an emerging markets perspective, and i think that is exactly what is

happening. in china, we will probably still get a good second quarter, but it will gradually slow until the end of the year. keeping in mind the chinese recovery is almost a ahead of everyone else, so we have had a big move in the recovery already, but i think it is likely to slow and it might become therefore a little more complicated for emerging markets, especially on the equities aside, to outperform developing markets in the context where china is decelerating. they will benefit from the rest of the world reopening and re-accelerating but it might prove trickier from an allocation perspective. beyond that, i think the bouncing questions days. we know that chinese policymakers did not want to do the type of fiscal expansion they did in 2009 and 2010. they felt it led to a lot of excesses over the following 10 years. the rebalancing was very painful a few years ago before the

pandemic, they did not want to go through this. they are hoping -- manufacturing has been better everywhere, right? so they are hoping that services will catch up and they won't go back to unbalanced, so we have to keep an eye on that. annmarie: you talk about tricky allocation. thus the clampdown on tech also damage the investment case in china? esty: to some extent, yes. for a while, china was seen as almost a defensive play. you had the management of the pandemic that was much better, it reopened much sooner, less restrictions, data improve very strongly already in the second half of last year. chinese markets benefited a lot. then you had obviously the tech situation, it is not particularly helpful for china in general. when you are investing in emerging markets, you have a big allocation to china. i think more neutral on emerging markets for now. it does not mean it is not

attractive entry points for the longer term, but in the next few months, i think again, another factor that might be weighing on allocation. manus: do you think it is more of a headwind to your em call if the pboc shifts from neutral to tightening, than the fed's position? esty: i don't think the fed is moving. i think the fed has been doing what it told us it was going to do and i think they will keep doing what they are telling us they will do, regardless of whether the market tries to preempt them a little more. the pboc is not as transparent. we have seen credit reduced a little bit, the credit growth impulses have slowed somewhat. we know china takes a bit of a step back, especially in terms of shadow banking, but liquidity has remained quite abundant. we will probably see two speeds. we have the u.s. continuing to expand both on the monetary and

fiscal side, and something of the opposite in china. the dichotomy is probably going to raise questions for investors over time as well, especially if we continue to get the reiteration from the fed they will not change the past compared to what they have told us. annmarie: i want to go a little off script for a moment. elon musk was debating with a twitter user about potentially whether or not, signaling at least, whether tesla will divest and sell off some bitcoin. this morning you had bitcoin 43 k on the handle. do you think bitcoin is still a place that institutional investors want to be part of? esty: so, there are so many questions surrounding bitcoin and there are plenty of areas we just don't have an answer to yet in terms of regulation, in terms of transparency. there are plenty of question

marks i don't think will result for quite some time. at the same time, i don't think it is going away, especially because we have seen institutional investors start to talk about it, we've seen a lot of banks set up trading desks. it is going to remain a conversation and i don't know -- it could be painful for a while, but i don't think it will just disappear. annmarie: a conversation and potentially more. thank you for joining us for a wide-ranging conversation, esty dwek. head on the program, at&t planning to merge its media act -- assets with discovery. the details are next. this is bloomberg. ♪

>> we do see recovery continuing, it's just we will have these month-to-month changes depending on which factors are more dominant, supply-side or demand-side? i think the bottom line is we are really at the beginning of this vaccination widely distributed part of recovery. manus: that was the cleveland fed president speaking exclusively to bloomberg. let's get to the stoop of the day, at&t in talks to spin off the media business and merge with rival discovery. sources tell bloomberg the deal could be announced as early as this week. the venture would represent a major shift in at&t's a strategy to combine its telecom and media assets. let's get more on the scoop with our reporter. great to have you with us. here we go.

this deal, i suppose the question the markets will ask firstly, does it make sense? manwell: thank you for having me on the show. it does make sense. we have seen telecom companies and -- companies under pressure over the years after they bought these companies through deals. they are being pressured because investors want them to refocus and they have had trouble, to be fair. those media investments, they have to pay off. it would make sense for the media assets, to combine those with discovery, that has been successfully building its company with acquisitions the last few years. the deal makes sense.

it is the strain we have seen over the years, and it is likely to continue as well. annmarie: what about the space overall? are we about to see potentially similar deals happen? manuel: i think so. it is a dimension of what has happened over the years. telecom providers have always grown acquisitions and they venture into media, they amass media, not just in the u.s. but also in europe. we have seen that the last few decades. then they realize they are better off exposing those assets and raising cash to invest in their core business. i think we will see more of these deals. annmarie: thank you so much. we have that scoop this morning.

coming up, we are live from gatwick airport as you could begins to reopen. we will be talking summer holidays and vaccine passports. first, we talk with michael o'lear look...if your wireless carrier was a guy, you'd leave him tomorrow. not very flexible. not great at saving. you deserve better - xfinity mobile. now, they have unlimited for just $30 a month. $30 dollars. and they're number 1 in customer satisfaction. his number? delete it. deleting it. so break free from the big three. xfinity internet customers, take the savings challenge at xfinitymobile.com/mysavings or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds. ♪ ♪ look, if your wireless carrier was a guy you'd leave him tomorrow. not very flexible. not great at saving. you deserve tter... inity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction.

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annmarie: good morning. this is "daybreak: europe," and here is what you need to know. open with caution, the u.k. takes another step out of lockdown with concern about the indian variant. ryanair's ceo gives us his take momentarily. china with mixed economic data. a big mess on a retail sales is the standout figure. and creating a giant.

at&t poised to spin off its media assets and merge them with discovery. it is a bloomberg scoop. manus, very good monday morning to you. a lot is going on. when it comes to the united kingdom, it is a momentous day, they are lifting restrictions so you can dine indoors, gym classes will be open, but it is not without a cautious tone from the government, especially boris johnson. he is literally saying please act with cautiousness as you do this. amongst this, they are trying to vaccinate more people. if you are 35 and older, you are eligible for a vaccine. this is time against the spread of the indian variant they are very concerned about. manus: and it is not just the u.k. concerned, undoubtedly it is a global risk. here in dubai they have closed the hub route from india to south africa. it has global consequences.

nowhere has that been born more manifestly than ryanair. the losses have been hard and heavy and they have seen since april recovery in bookings, yes they lost 815 million euros. as the u.k. begins to open up and the green lists and amber countries come to bear, portugal on the green list but greece and spain remain in amber. this is i suppose a splice risk because the u.k. has them on amber but greece and spain might not want british tourists because of the indian variant. annmarie: exactly, it is a very difficult situation for a ceo of an airline to navigate. not only do you potentially need more capacity to countries like portugal, where if you thought you could go to mika knows or athens or rome, but whether those countries will let british

travelers and. at the moment it is a little unsure. manus: it really is up in the air. but we have the numbers and the ceo, a great combination. the numbers are tough to turn. a loss of 815 million euros. the passenger numbers already heavily curtailed by covid restrictions, and the government says it is impossible to provide meaningful guidance for 2020 two, expecting a strong recovery in the second half of this year. michael o'leary, good to have you with us. we are getting ready to reopen. yes, portugal is on the green list but green and spain in amber. can the summer be saved with portugal alone? michael: good morning. it cannot be saved with portugal alone but we are already in mid-may. we expect the u.k. will add italy and greece to the green list before the end of may and

spain probably in early june. we have seen a very strong rebound in our bookings the last six weeks. first week of april, we took about half a million bookings, last week, 1.5 million. we are not only a u.k. family, we have bookings in greece and spain and portugal, not in may, but june, july, august and september. we think that will continue. the u.k. has done a spectacular job on vaccinations, 60% of the population vaccinated. all of the scientific evidence over the weekend confirmed vaccinations are effective against the indian variant, but it is more -- it has higher rates of spread. but vaccines are effective against it. like previous experience with other variants, there is a two-week window and then everybody calms down because the vaccines are effective. the critical thing about reopening travel in europe for

the summer months is the rollout of the vaccine. most european countries are predicting they will get to about 80% of the adult populations with at least one vaccine by the end of june. we are looking at a strong july, august and september. we think the booking trend over the last six weeks supports that. annmarie: you expect italy and greece to be added to the green list that germany has raised alarms. you worried about other countries cutting off travel to the u.k.? michael: no. most european countries are looking at the u.k. and saying they are 57% vaccinated, and they are removing restrictions on u.k. visitors. most eu countries already have some elements of the indian variant in their country. the vaccinations are removing the threat of hospitalization from the population.

we think it will be a one or two week issue and people will return to focusing on vaccination. manus: michael, i've been fortunate enough to do a couple of trips, i spent 300 euros on pcr's and probably one full day executing those pcr's at either end of the trip. the return to pre-covert demand levels are the biggest hindrances. the cost of the pcr's and time to execute it. so your business of fast in and fast out is a structurally challenged, isn't it? michael: again, i think vaccinations will rapidly overtake pcr tests. as you see 80% of the population in europe vaccinated by the end of june, countries will say we will accept a negative pcr tests

or evidence of a vaccine. clearly in the summer months this year, we expect to be running between 60%-70% of a normal summer. by the time we get to the second half in october, november, december, essentially all of the european population have been vaccinated and we expect very few restrictions on travel at that point and we look to getting back to pre-covert normality. annmarie: are you burning through cash and do you need to raise more capital? michael: we have done a stellar job on cash preservation the last year. we went into the crisis with 3.8 billion in cash in march 2020, and we are 3.5 billion in march 2021. we have one of the strongest balance in the industry. we have very strong cash balances. we will always continue to look

for opportunities to raise money on a low-cost terms, particularly because we have a big boeing order coming, the delivery was supposed to start in april. but as a result of changes, it delayed delivery. manus: you talk about where you could raise money and the outlook getting better in the second half. if you have to come back, will you come back to the debt markets? michael: i think we will review it, we review it on an ongoing basis. our focus at the moment, we have a bond we have to repay at the end of june and we have all of the cash on the balance sheet to make that repayment. we have a u.k. government loan that has to be repaid by march of 2022, and again we have the cash on the balance sheet for those. i think we will continue to look at the debt markets where

financing is cheap, and certainly at the moment, it is cheap for the ecb buying program could -- program. it is something we continue to monitor closely so we maintain the strong us balance sheet in the industry. annmarie: when do you expect to start flying these new flame -- planes? michael: i wish i knew. they were certified on the sixth of april. we expected delivery in april. i think boeing has been very disappointing in the way they have handled the relationship with the faa and their customers the last six to eight weeks. we expected delivery in april and may and we sit here in may and we have no idea when we will get our first one. the conditions for boeing are very poor.

we support the faa, they have been very vigorous with boeing. the faa make them show documentation. i think boeing has done a terrific job with new leadership under dave calhoun and turned the company around, but i think there are issues in seattle, and the guys manufacturing and delivering aircraft need to get their act together because boeing the last few months has been very disappointing, that is a fair description of it. manus: that is certainly a description of where you are. when other people are flattering, you typically take risks. you mentioned a couple of times expanding into other airports as others pull back on capacity. which countries do you think could top that agenda and argue in active talks or being offered pretty amazing terms?

michael: we are getting dizzy with the number of airports at the moment. already for this summer and winter, we have announced eight new bases in capital cities like croatia, stockholm. we are adding more places in the grease islands -- grecian islands. spain, scandinavia, and central and eastern europe. we see a very strong recovery of tourism traffic into the summer peak computer but we need the aircrafts from -- summer peak. but we need the aircraft from boeing and we are nervous about concluding the negotiations. we extended the low-cost deal in london through 2028 and that will suddenly be a focus of growth for us as we recover.

particularly, an opportunity in london where heathrow as usual is imposing a ridiculous 10 pound tax on customers to recover from covid losses. those kind of novelty airports like heathrow that will try to scam customers. it is better for our growth and recovery at a lower cost airport. annmarie: if you're looking at adding airports in central and eastern europe, will you need more planes, and will you bump up another order? michael: absolutely. we bumped up our order in december, and increased the order to 210 aircraft. we are hoping to get 14 before the end of may, that will not happen now. we plan to have a 65 aircraft deliveries before summer 2022. era italia reduced its fleet by 20%.

air portugal reduced by 30%. they are not coming back and these airports are looking to us because they know we have new aircraft coming and we are very keen to work with the airports so we can put in more capacity, certainly by summer 2022. you are seeing fundamentally very strong rebounding. families traveling again across europe. manus: can we circle back and finish off with vaccine passports. you say to me, manus, the vaccine you have, you don't have to have the pcr's. do you support vaccine passports and do you have enough velocity of other ceos with you to endorse that as the way we get back to pre-covert demand? -- pre-covid demand? michael: it depends on what you

mean by a vaccine passports. if we are waiting for governments to publish a document, i am against it, because it will take three years for the government to get their act together. but in europe, certainly the tourist economy, they are saying we will accept evidence from a passenger we -- they have been vaccinated. we have an app where you upload your vaccine certificate to confirm you've been vaccinated. all of the european countries have said we will accept that evidence. there needs to be vaccine evidence put -- evidence. we are not sure how they get to a green cert by june and july. a vaccination, whether it is paper or digital, it can replace pcr testing, which as you rightly say is cumbersome and expensive. annmarie: as you say that, the

nhs mobile app is starting to show an individual's vaccine status so potentially that is a key to the government doing a passport. thank you for joining us, michael o'leary, ryanair ceo. let's get a quick recap of the first word news. >> microsoft conducted an investigation into cofounder bill gates's involvement with an employee almost two decades ago. it did not reach a conclusion as gates stepped down before the probe was completed. dow jones reported he had to leave the board due to the inappropriate relationship, and his spokeswoman said he did not step down because of an affair. bitcoin plunges again after elon musk implied tesla may sell or has already sold its bitcoin holdings. he seemed to agree with the tweet that said tesla should divest from bitcoin. inis is the latest statement from the billionaire that has hit the digital toe computer it is -- hit the digital token.

crown resort has rejected a takeover bid from blackstone saying it is too low. it hands the advantage to rival suitor star entertainment. crown said there was too much uncertainty with the blackstone bid, including timing and literary approval. the casino operator says yet it has -- says it has yet to form of you on star's offer. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus: thank you very much. coming up, the world powers call for an immediate end to violence in israel and gaza, the israeli prime minister valves to fight against hamas. this is bloomberg. ♪

>> we will do whatever it takes to restore order and quiet and the security of our people. we are trying to degrade hamas's terrorist ability and their will to do this again. it will take some time, i hope not long, but it is not immediate. annmarie: benjamin netanyahu bowing fighting will go on even as the u.s. joins other world powers and calling for an immediate end to the violence between israel and hamas. we are joined by our correspondent. what is the latest on the ground? >> so far, sunday was the bloodiest day in this weeklong conflict between hamas and the israeli ministry. 42 people died in gaza, including many children who were

buried under the rubble amid airstrikes. the death is around 190 palestinians, including 58 children, and 10 people among the israelis. the airstrikes are creating a very heavy toll on the gaza, which is a densely populated strip. hundreds of homes were damaged. power lines were cut. roads were bombed and hospitals are overflowing. it is a very bleak situation. manus: it is indeed. good to have you with us. where are we with joe biden's position? has he emphatically delivered a clearer position? he's getting some pushback because he has not come out and said this needs to stop outright. >> you are right. the u.s. for the third time

blocked a u.s. security council statement calling for a cease-fire. that was proposed by china and indonesia. the u.s. says it wants to focus on the mediation effort. we know that egypt, qatar and to some degree jordan are involved in mediation after trying to bring hamas and the israelis to accept a cease-fire, a long-term cease-fire, and to try to push the sides to go back to the negotiation table. at the same time, we are seeing growing pressure within the democratic party on president biden. they say u.s. statement is basically giving netanyahu a blank check to go on with this offensive and they are increasingly linking the situation in gaza and palestine to social issues and social

justice at home. manus: thank you very much. the very latest on the israel-palestine conflict. netanyahu saying full force will endure and it will take time, israel wants to levy a heavy price, that is the words of the prime minister of israel. coming up, people across the u.k. waking up to greater freedoms, lockdown restrictions loosening. where else do you want to go? gatwick. international travel cautiously reopens. can the summer season be saved? this is bloomberg. ♪

manus: it is "daybreak: europe." for a bunch of u.k. bans on

travel and mixing indoors, they are relaxed from today. our correspondent is at the gatwick airport. is there a sense of apprehension, excitement? give assistance -- a sense. >> i haven't been to an airport in a long time. maybe 18 months or so. certainly for tourist travelers in the u.k., i haven't been to airports since at least last summer. we are seeing the lifting of restrictions for leisure travel. it is in limited capacity, it is just to countries on the u.k. cream list. that -- green list. that is where leisure travel is allowed, and on return you don't have to quarantine. that list is limited. 12 countries, some of which not allowing international travel. the one that is is portugal, not

quite as popular as other european nations like greece, italy and spain, portugal -- but portugal is returning and there is the hope that other countries will be added to the green list, very excited about what it will mean for the rest of the summer. the government is cautious about the reopening. they are extending international travel as they deal with the indian variant in the u.k. some 126 billion hit last year and 148 billion this year in india. annmarie: thank you, am i. -- emma. when i flew from london to new york, heathrow was empty. manus: i can tell you i have just returned from a trip and it was a pretty packed plane.

we have limited destinations here, and i have had more pcr tests in 10 days than i prefer. ♪ ♪ ♪

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♪ >> good morning. welcome to bloomberg markets the european market. we will take you to singapore. the cash trade is just less than an hour away. here are your top headlines. open with caution. most of the u.k. takes another step out of the lockdowns.