you talked about iag. up 1% at the moment. after six months of waiting we see the irish government has given the green light to the government stake in aer lingus being bought by iag. it looks like that extra hurdle of getting pushed through has put iag that much higher. this is the retailer. big presence for the united states. the laces for these two companies are meant to be combining up by 1.5%. no news on m&a. investors want to hear it was a more clarity on that deal. u.s. sales looking flat relatively weak, coming in less than expected. they are having to put more money into promotions. they have competition in the u.s. we have the exclusive interview of general holiday -- generale's chief executive. positive economic position and their cash flow looking good as well. back to you guys. jonathan: after a day of losses a little bit of a rebound in the market this morning. the dax up .2%. we are going to athens for the latest on the g-7 meeting and a conversation on greece. and we bring it back to the u.k.. prime minister da

iag would take out a competitor. does iag need more than the other?hat seems to be norwegian's biggest lagos that they don't have the support from a bigger network in case something goes wrong. if norwegian has some disruption, the only wait for them to get passengers from london to new york is to use another aircraft or put them up in hotels, which costs a lot of cash. that is weighing on norwegian. otherag offers is airlines -- british airways. qataraught our -- airways. it generally support the norwegian mechanism. mark: iag strong today, outlook looks good for the year. that was very. ben: remarkable, actually, earnings from iag. they're quite bullish on the rest of the year. z on the tussle, we will call it, between iag and a norwegian. vonnie: we will be talking about telecom later on. interesting outcome there. coming up, the federal reserve is back in focus. we will speak to the former fed governor kevin warsh. this is bloomberg. ♪ mark: live from london, i am mark barton. vonnie: from new york, i am vonnie quinn. this is "bloomberg markets."

breaking news from iag. we will certainly return to our top story. let's get to iag.he adjusted operating loss, no surprise that we are getting a loss from an operator in the aviation space. full year adjusted operating loss, 4.3 7 billion euros against an estimated loss of 4.43. that's a bit better than expected. it is not providing -- this business is not going to provide profit guidance for 2021 at this stage. perhaps they just lack of visibility. we know the ongoing conversations about opening up various european economies, which will be so crucial to the iag story. they are giving us revenue numbers as well. passenger capacity plans for the first quarter of 2021 are around 20% of 2019. that gives you a sense of how much smaller this operation is compared to pre-pandemic. that is the corporate story when it comes to iag. we have seen a pickup in bookings, notified by the markets to competitors of iag. we have seen a pickup in bookings for european aviation. let's get to these markets. this is what futures look like right now, down by 1.6% on euro stoxx 50 futures.

i saw the ceo of iag talking about 2023. there is certainly an expectation that may be long-haul is going to take longer to recover than the short-haul, and corporate is going to take longer than leisure, and perhaps it is going to be shorter for longer with the likes of zoom. so the airlines have to make that up another way. for example, iag pre-pandemic was saying they could generate 2 billion need plus -- 2 billion plus euros in free cash flow, so they certainly have restructured , and to come back to where they wear pre-bid -- pre-pandemic before that happens. guy: does premium economy help? using we will see more of that? do you think we will see more vfr traffic towards the front of the plane? what can cargo do as well? david: the airlines are certainly pushing that they are changing their inventory mix, so you see a lot of them talking about premium economy, a lot of them talking about premium as mixed between leisure and corporate. so aircraft are talking about a premium business with leisure. if this is the case, ma

to iag. euro selloff comes as an extra cash in stocks. we are in dublin with the latest. what did iag give ireland that suddenly prompted this decision to approve the sale? >> this has been dragging on for over six months at this point. ireland is an island nation. therefore, connectivity is an important part of our strategy. when iag first made a bid to guarantee the routes between london and dublin for five years we yesterday learned that they had increased that guarantee to seven years or at least seven years. they also gave the government power over the heathrow slots. that gave the government to say, -- government the comfort to say, we are ok with this deal. caroline: the next six months what happens? dar thea:a: some significant news this morning. there are six or seven members of the labour party, they have always been against it, but we learned they are going to back the deal. that is a significant development. willy welch is going to be in town today. he has a press conference at 11

iag getting a new shareholder.r airways. >> how jack ma lost $1.5 billion in a single day. ♪ >> time for today's company news. it has been announced that qatar airways has bought a stake in iag. the say they are delighted to have them as a shareholder. jack ma is no longer the richest person in china. his fortune fell after alibaba shares sunk on missed estimates. he is now only worth $26 billion. shake shack has raised 26 -- money in their initial public offering. that is according to a public statement. they boast a valuation of $746 million. two former traders have been charged with allegedly cheating their employers. they worked at hsbc and deutsche bank. they used the banks accounts to get preferential rates for themselves. >> russia could be facing further sanctions from the eu and u.s.. moscow appears unmoved as the conflict intensifies in the ukraine. let's get more from the senior oracle analyst. always great to get -- political analyst. the rebels are pushing towards crimea. putin seems unmoved. europe ha

one is iag.nfirmed a data breach as a result of which, you can see iag's stock price is trading down quite sharply. it's firmed a little bit. trading down by 2.2%. matt miller? alright, now to the middle east and qatar's minister told their embargo has been a blessing economically. he still sees opportunities in some emerging markets, as well. he spoke exclusively to bloomberg on the sidelines of qatar's germany business investment forum in berlin. >> i can tell you today that the embargo, or the blockade on qatar, and the blockade from our neighbor is behind us. we are doing excellent. in fact, from an economic one of you, -- point of view, it's a blessing. let's look at the numbers. in 2017, we met our growth targets, which was 1.6%. our total exports increased by 19%. total trade was 60%. total surplus increased by 48%. and the world bank expected qatar would be the highest growth in the region would be an 3%ar, 2.8% or 2.9%, and following that until 2022. there are huge growth opportunities a

if you look at iag this year, their target is up 25%.ael o'leary saying that prices will remain elevated for potentially five years. in terms of cargo, how significant is that for the likes of iag? it was a factor for lufthansa. is it a factor here? benedikt: is a factor across the industry and we are seeing cargo level off again. it has to come back from the elevated levels we saw during the pandemic. shopping behavior has changed again. some of the supply chains are coming back. so the cargo that helps airlines through the pandemic is coming back. with lufthansa, they had half a billion in profit in cargo a year ago, and that came down to 50 million, and that is something we will see across the industry going forward. francine: thank you. that is benedikt kammel from our aviation team. coming up, it will be a historic day in the u.k. tomorrow. we found out that the vice president of the commission will also be watching. tom: he will be watching with millions of others the coronation of king charles iii. the streets of london will be pa

you have iag, aer lingus. aer lingus say they are discussing a new bid from iag. iag down and eight of 1%. apparently ryanair's holding has been on the block for one month. >> that is how markets are opening up. markets are a little bit lower. i am looking at the footie down by half of 1%. the greek anti-austerity party won the decisive victory over the weekend. guy johnson is standing by. i guess the big question is what this result will be for greece's future in the eurozone. are we getting a little ahead of ourselves? >> i think we will find out. it's going to be an interesting morning. it was a fascinating night last night. he arrived with police outriders. he is prime minister elect. you got a real sense watching him talk to some of the activists, a real sense of relief that they have done what they set out to do. a big win last night for his party. as he addressed the crowds, he talked about this being a turning point for the greek economy. >> the sovereign greek people have given a clear, strong, indisputable mandate. recessed turn the page. greece is leavi

success toerkshire's the proven activities of iag is involved in.e are seeing a significant endorsement of the strategy we are following across the asia-pacific region and recordation of the strong franchises. u of also said it will reduce your exposure to natural disasters. but, whatustralia kind of impact of the climate change will have and the ability for you to provide adequate insurance cover for assets in those countries? : well, we are the largest insurer in australia and new zealand and will divide comprehensive cover at this stage and we believe it will be viable. the climate change, we do ring that what -- we do think that what we're seeing at this age is a natural regression of the environment as much as anything else. given the capital strength of iag has, the further strengthening and flexibility of the arrangement we entered into with berkshire. be able towill provide capacity particularly in australian and new zealand market. shery: doesn't the deal change your business strategy at all? countries sucher as thailand, china, vietnam, in

we also get numbers out of iag as well.n, prime minister sanchez is expected to name his cabinet. the brexite u.k., deal law proceeds to its third reading in the house of commons, this time seemingly with a chance of passing. later in the u.s., the fed vice chairman speaks to the council on foreign relations in new york, and st. louis fed president james bullard speaks to the wisconsin bankers association in madison. to -- oh, all right, i will tell you more about exit. boris johnson and ursula von der leyen set out rival red lines for their vision of a post-brexit deal. said britain will not stay aligned to eu deals, which i feel like was the point of the whole thing. saying it der leyen will be impossible to get a full deal by johnson's end of year deadline. redlines have been set. aside from those that are perfectly obvious and that we already know about, what are they? right.that's they are obvious, but it is significant that ursula von der leyen and her first trip to london, first time she met with the prime minister s

a big rich brother like iag coming over the hill.'ve learned to respect willie walsh's views, he said a terrific track record and certainly norwegian is a good strategic fit for iag your lufthansa. there are some top edition crossovers in places like spain where iag is very large with iberian wailing and norwegian has a big basis in madrid and barcelona. that would be a challenge. ceo.et: that is ryanair still ahead, trade truce. tensions seem to be easing of it with china. one of the risks -- what other risks should investors keep an eye out for? this is bloomberg. ♪ scarlet: this is "bloomberg markets," i'm scarlet fu. julia: i'm julia chatterley. listts getting a list -- a -- a lift from the trade tension easing. u.k. inflation data to. barton, eatonyana vance management. assuming de-escalation of the tensions between china and the united states, and being optimistic, are you equally optimistic or is it early days? optimistic on are the companies that we own and the prospect of the earnings trajectory, irrespective of the backdrop

also, the economic environment is a bit of a concern for iag.ve people concerned about global growth outlook, demand outlook, and we certainly saw weakness in the cargo numbers in this earnings report. guy: and they just launched their new business class seats as well. emma, thank you very much indeed. vonnie: it is time for the latest bloomberg business flash now, a look at some of the biggest business stories in the news right now. -- secondpital quarter withdrawals of 849 million dollars, bringing assets below $10 billion for the first if -- atears, at talks och-ziff. alphabet's google is trying to fend off more scrutiny. it will require competitors to enginesave its search included on android devices. a deall soup has inked to sell international operations to kkr. deal completesn the asset sale plan announced last august. the company trying to pare down debt. that is your latest bloomberg business flash. still ahead, rounding out a big week dominated by central banks and trade headlines, we are speaking with david riley, riley, asset bluebay

most 10% loss for iag. air france down 7%. down almost 10% and ryanair seeing losses of close to 8% in the session. ruining us now is our transport industry reporter. -- joining us now is our transport industry reporter. as we look ahead to what many would have hoped in the industry would've been a decent season for the airline industry. >> good morning. for the airline industry, this is a double blow. we have seen the likes of the airline industry having to face lockdowns across europe in places like austria and now, with this south african lockdown and also the travel ban, you basically. a 1-2 punch for the airline industry. it was really hoping to recover from the pandemic. we are still not out of the woods with delta. travel was just beginning to start again and this will come as a blow just as they are getting restarted. francine: i have to say, a 20% move for iag is pretty punchy. what are the airlines saying? is this the worst case scenario? >> i think it is a case of that because the airline industry is saying that it

you would assume iag was included. >> he said he offered it to iag but it hasn't sold.ked, do you think you're going to get competition approval. they wanted to buy aer lingus. they have been told they couldn't. he predicts the regular readers -- regulators will treat them in a different way and allow that deal to go through. >> how angry was he? >> he didn't seem that pleased. they did say he has been offering it for a while. >> we will leave it to mark to do the next interview. you said yourself up. what do you think? the cost of getting from london to dublin? >> you flew further up north in dublin. >> i cannot talk about that. i don't mind which airport i fly to. letting the secret out here. coming up a new set of challenges. how difficult would it be to control the left wing? that is the issue for discussion next. >> a historic victory means greases eager for change. the liver and will bring many challenges. how successful will the party be in facing those challenges? we welcome the managing director. thank you for joining us. what coalition do you envision in greec

we are looking at iag.y of british airlines falling -- british airways falling. emma chandra is here with more. emma: pilots striking for two to scrapforced ba almost their entire timetable, losing more than $100 million. the row is overpay. british airways pilots ejecting a pay offer. they want a share of the profits. we are looking here at iag, the parent of ba, how their profits have increased over the years. they came in at 2.5 billion euros in 2018. despite those profit gains, if we switch up the board we should be able to show you how investors have actually soured on iag. we're looking at the stock price over the course of the past year, down some 36%. this is even as analysts like the stock. 70% of them right it a buy. if we switch of the board again, we should be able to see the stoxx 600 travel and leisure index. hat shows how iag languishes at the bottom behind a number of other companies. the concern among investors looking not to be strike action, but instead the possibility of a no deal brexit

in iag today up by fascinating to see how that proceeds.wn 6/10 of 1%, boosting profitability and the automotive operations by record sales of the model five series sedan, all sitting the negative currency headwinds and increased technology spending. the world's second-biggest luxury carmaker in the midst of a record rolled up with new and refreshed models to recapture the sales lead in the segment from daimler unit mercedes-benz. bmw down 6/10 of 1%. mark: jobs -- vonnie: jobs today in the u.s. with the dollar strengthening. 2.77 is the number to watch. and this is the dollar versus the sterling. yuan, i knowhinese the chinese talk about their basket of currencies and the reference rate versus the basket. it is important to look at the reference rate when it comes to the u.s. dollar, given we do not have any progress on trade talks. steven mnuchin leaving china last night with no progress being made, the promise of more talks. 2.96, slowly going higher against the 10 year yield after it went down to 2.93 and change after the jobs report. c

and max confidence, iag agrees to buy boeing jets. would get on board one tomorrow. good morning, and welcome to "bloomberg markets." i am here for the ecb forum alongside anna edwards in london. anna: the picture looks a little clearer today, maybe that is central banking policy and the view behind you. but how are the markets? we are divided on the stoxx 600, not going anywhere fast as we wait for the fed. fairly evenly divided in terms of the spread of moves to the up and down some. -- still tronic moving higher, a little bit of a bounce and a positive note for morgan stanley on some businesses in the chip sector. cyb g up by 3.7%. 3.7%.g up by having a bit of a rebranding day. , another one to watch in the chip sector. let's have a look at the downside. we have got a food and drug retailing business in belgium down by 8.3%. the are guiding lower on business. this is a stock that has been in focus, down by 2.7%, as a result of the talk of rent controls in berlin. on them.aiting let's get a first word news update. may impose sanctio

we need to talk about iag. let's first talk about tui. trading down today.arket starting to price in a rights issue. you discussed that you think a rights issue is more likely than an asset sale. i am curious why you think that. there are good assets that could be sold. how deep of a discount do you think it would have to be from tui to make it worthwhile if they were to do a rights issue. mark: is a choice between worse and worse, between showing assets that have depreciated or writes on a stock that has clearly come down substantially. we heard from a company nervous about the pace of recovery as you hurting your comments about the share price performance. while tui makes a point about cash breakeven, as great as that sounds, it belies the pressure of this business and the broader sector going forward, particularly heading into a challenging winter, and we cannot see further -- more importantly, it is a winter where we would like to see consolidation. , as early to go early as early can be given the fact we are six-month into this crisis, get the money, go

the focus today was on iag.said that, it obviously came up on the call with willie walsh, and he made the point that they are relaxed about this. they are under no pressure. they are not putting any pressure on the irish government or anyone else. it seems like he wants to get a deal done, but at the same time, he wants it to be the right deal for iag. he is not afraid to walk away. he wants this to work for everybody. he is willing to be patient. guy: let's talk about air france. not such a good story. kari: no they are probably looking across the channel and wondering what they can take out of mr. walsh's notepad. it was better in terms of the lost it narrow but the productivity that they are seeing at iag, the productivity gains, are not coming through at air france. they are struggling with getting these different transformation plans and projects to stick. they went from the transform 2015 plan, to now the perform 2020 program. the management will be meeting with unions and staff members today to discuss im

i was chatting with the ceo of iag about improvement in spain, how they have and make amendments yet on their plan for spain but they are looking at doing so. something that willie walsh has never really shied away from. and if thehave means opportunity presents itself, then absolutely. ,> so you have spoken to iag lufthansa, anybody else you have been speaking to? >> some people are more chatty than others. i just chatted with tim clark, the ceo of emirates. bullish as ever. this is an airline that seems to be taking over the world. i asked about a potential -- he said that is an anathema to their model. of course, they have very ambitious plans but he doesn't keep them awake at night because they delivered on their plans and their ambitious targets in the past. they intend to keep on doing so. everyone just kind of milling around. we will be speaking with the head of air france later as well. qatar hasn't been as chatty. he just held a press conference alongside tony tyler. a lot of questions as well about potential tracking in the wake of the disappearance of the malaysian airline

iag down 6%.s not possible to give an accurate full-year assessment because of the impact of the coronavirus, and they see weakness in demand. easyjet down 3%, seeing significant demand softening and planning to cancel routes. anna: the travel and leisure sector taking the brunt of the losses when it comes to market response and reaction, in european trading. hendersonn of investments is with us. we wonder what other asset classes might be vulnerable. one of my colleagues put out a story, calling it the scariest a chart this week talking about asian high-yield bonds. where are you concerned about positioning ahead of this market? nick: when you have really volatile markets, it has a beraing -- bearing on where you see the most pain. things like high-yield, u.s. equities would be another good example, seeing them losing pretty extended valuations. at a time you are worried about the impact of coronavirus, you think what is most expensive, not where i have the most profits to be taking. you can unde

nners in if this is going to be tough for iag, do any of the rivals win out?ie: the airlines the gulfs family with, carriers, this could be a win for them. they have been squeezing the european carriers, and this could help them. as the u.k. sorts at what they are doing with the european single market, this could be a good time for the gulf carriers to squeeze them more. anna: with all the uncertainty at the moment in the u.k., it is difficult to imagine anyone approving of a runway at heathrow. it's hardly a priority. thank you very much. coming up, we are less than 90 minutes away from the open markets -- opening of markets in the middle east. we will discuss what to expect with franklin templeton's dino krohn phone next on "bloomberg markets: middle east." ♪ yousef: welcome back. you are watching "bloomberg markets: middle east." we are continuing our conversation. we are just over an hour until markets start to open across the gcc. we will look ahead to see what we might expect. we are joined by the chief investment officer for franklin templeton investmen

iag as well. difficult.ith their balance sheet right now. 2023 -- easyjet could be one of those as well. we need to see those numbers coming back in the industry. people like lufthansa and air france selling off bits of their fleet easily. guy: to your point about the legacy carriers out of continental europe, i am struggling to see where the acquirers come from. why would -- ryanair i cannot see michael o'leary being interested in anything other than organic growth. easyjet will see what johann does. iag, maybe. there does seem to be the lack of acquirers at strong companies. why don't they wait for the capacity to come out of the market and take advantage of it? luke: ryanair has quietly done a bit of m&a. it has not been a particularly successful acquisition. if an opportunity comes up they will not stand by and let it happen, especially if there happens to be a boeing fleet, which is what ryanair is through and through. it has grown into the 747 and they have big orders for the 747 max. if they can get s

iag is the most beat up on the news coming from ryan in. there is a read across to the iag. there may be some nervousness out there regarding iag and london heathrow. we don't know quite what is happening there. ryan air gets 26% of its revenues from the u.k. market so it is pretty good measure of what is happening in the u.k. this is all sterling related. we haven't heard about that demand picture which is likely to weigh further on figures. guy: how does it affect capacity? need we are not going to the capacity. theyu think in the winter, may take more capacity on than in previous years. ares: ryan air and easyjet both used to idling planes in the winter. there is only so much you can do. ryanair has said today -- we have indicated that we are not going to do that. we will cut capacity for the winter but no more than usual and therefore fares will be very low. come and fly with us. tearing down the opposition at the moment. we have huge capacity fares that are historically low but you are right, something may have to give if things carry on like this. up aoil prices pickin

this is iag. us, it will bed tough out there.ped some of the losses, but he is with our very own guy johnson in london at the aviation festival, about to have that conversation. take it away, guy. guy: thank you, manus. let's figure out exactly what is going on with the bin is. saidafter the brexit, you you had to reset your guidelines. the data coming out of the u.k. looks solid. did you jump too soon? >> we didn't. we have got a large sterling revenue profit base. we are now translating that with a much lower rate of exchange. we had a translation impact, which was immediate and could not be reversed. we had a transaction impact. the pound has weakened against the dollar. the euro has weakened against the dollar. we have seen softening of u.k. the productivity in the lead up to the vote, as corporate try to anticipate what that meant for them. these were three immediate issues we had recognized that could not be overcome in the short-term. migrating? > rate >> no, it is actually very different. historically, we can measure thin

iag came in with initial balance sheets. air france did not.ght the income and assets -- it hasn't. it had to go to the state and effectively allow the state to take control of business. francine: what are the chances that you say yes to this? guy: there is a high chance the eu says yes. we are probably going to have to change rules a little. euould be surprised if the ended up blocking this. two major airline groups in europe, close to collapse. if they collapse, thousands of jobs ultimately will go. jobs will probably have to go, despite government involvement. surprised if they decided to block. doesn't have the ability in the same way to stand up to be governments. berlin will force this one through. tom: events are moving through may, guy johnson, thank you so much, in london today. much more coming up. francine, what a treat. our extended conversation with governor king in this coming hour. tom, it will be interesting to see what he has to say on negative rates. thanks are breaking the possibility -- banks are breaking the possibility of

let's see what it begins to cost iag.y morning, ongoing, although they are getting things back to normal. .att: let's talk u.k. politics as we get closer and closer, polls in the u.k. are tighter ahead of the election. it could mean a period of turbulence for the pound sterling. it's recovering some of its losses this morning after a fall on friday, showing the conservative lead over labor has narrowed. last week was the worst week for the currency this year. stay with us -- still with us, vincent -- does this narrowing of the polls give you pause? what do you expect for the pound going forward, other than uncertainty and volatility? >> well, we are sure of the pound at the moment. this gives us an idea of what we expect, as long as the holes in the election gives victory to the conservative party. that's the most likely outcome going forward. obviously ag-term, strong conservative property means a hard brexit, which is something that in the midterm could weigh on the pound. that brexit ise a huge frustration in europe. w

iag, q1 is normally weak but they posted a profit. strong consumer demand, 80% booked in the second quarter. air france has a little more weakness. there are still labor issues. still issues they have to face. fuel prices are broadly coming down. alix: here we are firing on all cylinders. regional banks getting some relief. we saw a nice solid rally up 1.5%. if you think it has been shorting with the regionals may be you are seeing short covering today or is there optimism. apple under promised and delivered at their earnings are good. you are seeing the best rally for apple this year. that's helping the overall sentiment and this can help us absorb higher yields. we are firing on all cylinders. guy: talking about firing on all cylinders, travel continues. who would've thought we would still be seeing this kind of demand given the economic headwinds that are building. maybe today's job data will show travel is solid. this is data out of america. the chart you have here is the intention to travel to a foreign country within six months.

britishe looking at airways owner iag. it is having its best day since december., at one point it was surpassing 6.5%. it is hovering just over 5%. the company has taken off restrictions on non-e.u. ownership. it will be the best performer today on stoxx 600. 5% on theore than ftse 100. let's take a chart at the iag freezing situation. today is the best day since december. the stock climbed 47% in six months. there are issues they had to strike including a pilot and surpassing a record data breach fine. there is an uptick in revenue, ridership. writer -- this chart we will stay on right here because it has to do with the top iag holders. that requirement for non-e.u. ownership is just below 50%. today it came in at 39.5%. the biggest airline owner is cut airways. we will leave you with just this. one word for you, brexit especially as it could pertain to a risk in ownership. guy: thank you very much. what we have coming up for you. the battle of the charts. that is next. this is bloomberg. ♪ bloombergme for the business flash. bloomberg has learned a canadian bill

matt: i am just throwing iag into a comp screen.comp function on the bloomberg because it gives you a five-year look and you can compare stocks with the same measuring stick. over the last five years, ryanair has given an annual return of just about 2%, total return of 10% in a five-year period. iag has given you an annual loss of 10% over a five-year period. lufthansa with a loss of 7%. iag has been a serious loser, british airways and iberia. jonathan: let's bring in maria tadeo and had to brussels. fill us in, germany, austria, what's happening? maria: two things really changed the narrative in europe and one is that we are seeing a lockdown again in austria. we were told we were not going to see any lockdowns in europe again, that the vaccination would prevent that, and we are going into one for 20 days. austria is saying once they are finished with lockdown they will make the vaccination compulsory. this is much more drastic than anything in europe until now and much more drastic than we expected from the government. it could r

looks like the market is ignoring iag. the market seems to think norwegian is back.side, down more than 13%. this swedish company deals with advanced measurement technology. they were out with a profit warning. they are citing trade tensions and weaker development in china. they will be cutting jobs. to the upside, osram. 3.4board has approved that billion euro bid from bain and crl ityle. bain and carlyle. china is sticking to its demand that the u.s. lift all tariffs as a condition for any trade deal. francine lacqua spoke to standard chartered's chief executive. ofi think the period , whiched globalization is part of what characterized the early part of the last decade, was very good for global growth, very good for a global bank like standard chartered. it was very good for its subset of the population and left another subset of the population behind, in particular, middle-class in developed countries. the political will to go back to unbridled globalization seems to have passed. i equate a national -- natural extension of the view that the population my small co

the big story, qatar airways taking that 9.9% stake in iag.will make them the company's largest shareholder. i want to show you what athens is doing. stocks in athens, a little bit higher after the brutal selloff in the first three days of this week. the banks got pummeled. alpha bank up by 7%. they are basically penny stocks jumping up and down. i'm going to talk to you about greek government debt in about an hour. stay tuned for that. yields are lower. off by 34% -- 34 basis points, rather. in a little bit of time, we get a big piece of data. euro-dollar, lower. 1.1321 is where we are right now. inflation data expected at -0.5%, the lowest since the summer of 2009. elsewhere, dollar-ruble, here is a cross to watch. stronger dollar, weaker ruble. that is a record low for the ruble on a closing basis. 69, approaching 70 ahead of a big central-bank decision at 10:30 u.k. time. rates 17%. i leave you with that. >> bit of a punchy number. jon, we will manage those for you as we work our way through the day. let's turn to attack now. investors che

iag, we will get more details about that in a moment.next hour we will hear from the u.k. transport secretary laying out the narrative in terms of how the traffic light system is going to work in the u.k. how are you going to go on holiday, which countries can you go to? technologies underperforming. let's talk about the sector breakdown. adidas coming through, really delivered in terms of expectations. there is underlying concern about what is happening vis-a-vis china and that is a storage watch out for. that seems like it is for another day. today's numbers strong. we were just hearing about what is going on at siemens strong numbers. continuing picked up. interesting to compare and contrast with adidas. siemens getting strong numbers out of china. the pickup and offending the company, which has been so slimmed-down. there are ongoing commodity headwinds. iag, really cautious today. they are in a very different position. very cautious about what kind of pre-pandemic looks like going into the summer. we will see later about positive he

we are getting breaking news from iag.rs are not breaking robert levels, coming just ahead of estimates. 1.3 9 billion euros. they are saying that iberia had a 50 million euro operating profit. that is one of the headlines coming through. the sales have come in at 20.2 billion euros. that is ahead of the numbers penciled in by the analysts. it seems as if they've, in ahead of estimates. they say their 2015 operating profit will be in excess of 2.2 billion euros. that is the first hint of an outlook coming from a company that is trying to get it hands on aer lingus. they were suggesting before these numbers came out that the focus would be on the performance of the company itself. they are in negotiations with the government. they are still trying to get what kind of commitments they will have to make in order to make that offer palatable to the government. so that's international airlines group for the moment. manus: we've just had bank of ireland numbers. underlying pretax profit for the full-year returning to profit. bad

. -- iag looks to enlarge the group. chanel and louis vuitton was the only luxury brands to increase in value last year. that is according to mill worth brown. vuitton rose 20% while chanel rose 15% to $9 billion. up next with the imf payment deadline looming, greek officials planned to meet with creditors in brussels. francine: welcome back to "the pulse." greek officials plan to meet with creditors in brussels today to secure a deal before the country meets the payment to the imf at the end of next week. for the latest let's go live to hans nichols before he makes his way to dresden. it is not looking very promising. on the boy -- hans boy -- hans: you had a u.s. official overnight saying the secretary of treasury will be warning about contagion and the unpredictability of the global recovery. contrast that with the german view. we just heard from schmidt who is a key advisor to angela merkel and he repeated this argument and has quite a bit of credence. the contagion could be limited. everyone will be arriving later t

iag and some numbers. >> iag, british airways, iberia. alsh pulled it out of the bag.tly missed in the third quarter. it is still up 31%. compare that to the profits that went tumbling at rivals air fr ance and klm. and also the second profit warning and five months we had at lufthansa. they're outperforming the market. profit up 31%. the full-year forecast -- raised. we could see profits up 77% compared to last year. previously, they thought they might climb 64%. but they are managing to get a grip of prices. they have got fuel down 7.5%. nonfuel costs 4 down.%. down 4.5%.osts they have 25 analyst saying buy. basically will wash fast forward to the process. he came through the end of the problems he had with the iberian unit far faster than his rivals. whilst the continental europeans are dealing with a weak economy, b.a. has been managing to tap some of the strength by expanding b.a. > >> capacity. >> rbs could be a strong performance. >> iag called higher. at last, they returned to a profit. it is the first time we've seen a third-quarter profit for rbs in three yea

alix: we will have guys interview -- guy's interview with the ceo of iag coming up next.is bloomberg. ♪ ♪ ritika: this is "bloomberg markets." coming up, alexis ohanian, red of co-founder -- reddit co-founder. this is bloomberg. ♪ guy: welcome back. we are watching the unfolding events down the road at carb ebay. the bidens and the johnsons standing next to the big g7 banner. we are now starting to get maybe some of the playback coming through from the meeting that is taking place between boris johnson and joe biden. in terms of what these two are saying to each other, clearly i think it is going to be a focus on making sure that this is a success, delivering upon the apparent promise to deliver around one billion vaccines to vaccinate 80% of the population. but a rekindling of the relationship. alix: and also, a big part of that, and i mentioned it earlier , that low hanging fruit has to do with climate. the draft communique seems to be setting some climate financing goals, asking for a new study of the coronavirus and the origins of that. so the stuff that everyone can

is that it for iag? >> international airlines group.is vision is to create this enormous umbrella with different airlines under it. now to siberia, aer lingus british airways -- i don't think he sees that as a limit. he will want all of those companies feeding in and making the entire group profitable. he will definitely continue looking. they want to make sure that works and does well for the bottom line but he will be definitely keeping his eyes open. jon: up next on this show, stocks in china surged today. we will bring you the latest from hong kong after the break. let's check in on equities. equity markets pushing higher. the dax up by 2%. gain on the periphery as well. switch up the board and have a quick look at the euro. a relief rally in the fx market. a stronger euro. yields lower in italy and higher in germany. back in two. jon: good morning and welcome back. a relief rally across the european equity space. the cac 40 up by 5.5%. seemingly greece giving into a lot of the demands from predators. -- creditors. if they stay in t

airways hastish some iag shareholders.t showing what happened since the crash in ethiopia. this is happening, if you can see it to my don't know what is going on -- there we go. the blue line is boeing. ship rate is down about 11%. there was about a 5% increase off the back of this deal. normally with these airshows, the big deals are announced the first couple of days and we've gotten those out of the way. so what are we seeing so far? angus: the first-day was dominated by airbus, it's in its own backyard. it came out with the 13 million u.s. dollars that first day from boeing. now they are premature at parity. -- pretty much at parity. this was unexpected. boeing also nabbed a 20 dream line order from korean airlines. it is right back in the mix. the other thing to say on the max, they are one of the main -- one of the main questions is whether customers will be happy to fly in the max. the airline chief executives we are spoken to in recent weeks have said one of the main challenges is convincing the public it is a safe

iag is the worst performing the stoxx 600 of this morning.y said they cannot give an accurate view due to the impact of the coronavirus. easyjet was out with another warning after planning on holding act other flights. tui is also getting hit. the entire sector is getting hit hard. francine: thanks very much. next, we are live in italy. more onve plenty italian bonds and how they compare to german bonds. this is a bloomberg. -- is bloomberg. >> there is a general recognition that we are not ready for big outbreaks and we are playing catch-up right now. >> the united states government must address the spread of the deadly coronavirus in a smart, strategic, and serious way. >> we have done an incredible job. it's going to disappear one day. it's like a miracle. it could get worse before it gets better, it could maybe go away. francine: that some of what we heard yesterday on the virus. let's get to maria tadeo in naples. how much is the government at fault here? thehere is huge pressure on administration to show it is able to tackle the virus.

we have set numbers from iag, the parent company of iberia. manus is here.h -- like walsh is delivering at iag. >> music to everybody's ears. iberia, the losses dropped by over 50%. ba, operating losses absolutely getting crushed. that comes down to 5 million pounds from 72 last year. iberia, you are seeing the losses dropped. -- they areeing flat. the take away is first-quarter operating loss 150 million euros. the estimates were 168. employee costs are getting crushed. parties., various ifthe top one for costs -- ,ou can squeeze your cost down down by 12%, that is the headline number in the first quarter. he is telling the market that operating profits for rise over half a billion euros this year. he has been on the tape -- i want to get through some of these breaking headlines. he is on a conference call. sher willhe -- sla tagline. >> they have not paid dividends since 2008. this is all about re-equipping the fleet. one of the biggest criticisms has been his building capacity in the transatlantic areas. there is the view that he is building too far too f

guy: when i looked at my screen after the pfizer news came out, iag was up 30%. lufthansa was up something similar. all of the entire travel sector was roaring higher. is that indication of the potential that these companies could have, were we to see some positive news being cemented? how much upside could there be in some of these most deep down -- most beaten-down sectors? andrew: i just think it is pretty interesting that if you look at the way the market has been trading up until this point, and i think this is still the case, even as there was supposedly a lot of optimism around the vaccine, if you listen to the news or talk to investors, i thick a lot of investors were very open to the idea that a vaccine would be successful. yet if you look at what was leading the market higher, it was still very recently many companies that benefit from abnormality, that benefit from more restrictive economic activity. is a good step towards this idea that maybe can be more normal. it might be the more cyclical parts of the market where there is more operating leverage,

iag is probably best positioned.have made the most progress and probably have the least execution risks left. >> we will see you after those are released in about 27 minutes. angela merkel began her speech to the british parliament by telling the audience that she has come to disappoint them. should not weigh in on the debate over u.k. and the eu membership, she said the country shared responsibility to make europe stronger and more competitive. were the comments well received by lawmakers? certainly those under expecting angela merkel to arrive in london with a list of concessions that she was ready to give to the u.k.. they would certainly have been disappointed. she did have one message that .hey could've agreed with >> we need a strong united kingdom with a strong voice inside of the european union. we have that, we will be able to make the necessary changes for the benefit of all. her sameere you have something which is actually on the platform of all three major political parties. that the european union could

iag reported a jump in profit in the second quarter.erry lundgren joins us now for a look behind the numbers. from air france and lufthansa, i might have expected something similar here. >> analysts and investors were wondering if we would hear something similar from iag. i spoke to willie walsh earlier this morning and he sounded pleased with himself over these numbers. all three units profitable. generally, things going very well in spain. they announced that iberia is getting 18 planes. rings are going very well for them, which is a big success. >> let's talk about the overcapacity in the transatlantic market. any concerns on that? >> this is an area that other airlines have flag. said that there might have been a little bit of greediness. they are being very selective on their routes. the group as a whole is trimming capacity by about 3%. he was saying that is en route for extra flights going at this point. on transatlantic, he says it is choosing the right routes. he wasn't being specific about the new places they were flying. he s

today, iag, it was up more than 2%.pite the second reduction in public guidance since the referendum. it really is a matter of things not being as bad as we originally anticipated it to be. guy: how will the market react when they say they are going to raise the prices? >> it is an interesting dynamic. it is something that was spoken about earlier today on a call. he said there is no chance they would lower prices. that is quite a big benefit for them. potentially raising prices especially on the transatlantic routes which is interesting because there is a heightened competition on the transatlantic these days including the u.s. as well as the norwegian and others. how much are we going to see a change in direction for the u.k. airlines vis-a-vis the rest of europe? weather theve to sterling storm on their own? brexit, things are shaping up to be better than they thought. it is a good question. ba has been quite positive about brexit and the impact on business travelers. i had of the referendum, they were warning that t

iag is trading higher. i want to talk about iag. it is trading in sympathy with air france.ll say next is more but public service announcement. iag lost a court case in the u.k.. that case was designed to stop its pilots going on strike in august. i know a lot of you spend a lot of time on her planes crisscrossing the atlantic and europe. it looks like iag could be facing stripes. -- stripes -- will be facing strikes. credit suisse is trading higher. that is look at the european close. vonnie: let's have a lacrosse assets. -- major indices fluctuating the major moves are beneath the surface. on fomc day, all eyes are on the 10 year. gold futures down slightly. we also had crude oil inventories, another drop-down that was larger than expected, four times larger. we saw crude oil rise more than 1%. still $58.41. let's get the some of the movers in the stock market. apple is moderating gains. above 5% earlier. analysts are pleased with the quarter even though sales of iphones were at the lowest since 2012. the attention is turning to services and other apps. analysts are lookin

iag may be implemented of what is happening elsewhere. kailey: this market has repriced expectations to a significant degree over the last several weeks and it is having to do that even more so today after that inflation data. the preferred inflation gauge came in hot on every metric. headline core year-over-year, all living deliver -- all of the delivering the surprise. the s&p 500 down 1.6%. the nasdaq 100 down about dew points 25 percent. the two year treasury yield up 11 basis points to 4.81. this is the highest we have seen since july of 2007. all of this translating into a stronger dollar. the bloomberg dollar index higher by 0.7% on the day. guy: all of this really maybe has a big geopolitical element to it as well which is why it is worth spending time talking about what is happening in ukraine. this is what is happening in kyiv. a press conference is being held by president zelensky. he is briefing the media right now. he is looking to involve china and india to back his peace plan. we had a proposal from china earlier on. let's

will take a closer look at iag a little later on in the program. also coming up, we have talked about russia. will putin's military showcase add to tensions as pro-russian rebels prepare a referendum in ukraine? we will get insight from the head of markets at bcs financial group. ♪ to "the pulse." president putin is expected to review warships off the coast of crimea. we are joined by the managing director at bcs financial group. ryan chilcote is here with his perspective as well. joseph, let's talk about the russian economy. all of thisact geopolitical tension is having on the ground. >> at the moment, we haven't seen any structural hit to the russian economy. we have seen expectations for economic output come down. have, russia will probably small growth this year. we have seen investment in consumption being delayed. point, we haven't seen anything structural. >> that is key for you as to whether this becomes a much bigger issue. whether sanctions are expanded or not. >> absolutely. russia is still hugely dependent on commodity pricing which is

manus: for iag what does this mean?one of the big things will be they are thinking of dublin as another runway for heathrow. it will be years before heathrow gets another runway. iag and aer lingus will definitely be making a push to focus on the fact that you can clear customs in dublin, go to the u.s., build on their transatlantic powerhouse that they have developed and focus on what they have been doing so well. manus: we will carry the aviation thing forward. this is the airbus experimental electric plane. it has taken off. this is of course a project run by aer lingus, it is an electric plane taking off from the u.k.. it is flying across the english channel, a journey that the plane maker said was a huge step. can this go into commercial production? there you go. up next making a drachma out of a crisis, just how come located with a currency change be for greece? ♪ manus: welcome back live from bloomberg's european headquarters in london, i manus cranny. shanghai composite index has enjoyed the biggest jump since 2