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."

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

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

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

iag's ceo says he's worried about fuel prices and inflation.loomberg at iag headquarters. >> it is a crucial moment because it is one of our main markets. we needed to have that capacity, so i think it is a day where we are going to see the future in some way. we can fly all the aircraft we are holding. it is an important day for us. ritika: he says he also sees a reduction in global corporate travel -- a return to global corporate travel in 2023. credit suisse is exiting the unit that lost billions in the archegos collapse. that is your business flash. guy: thank you very much, indeed. this seems to be the direction of travel. basically, a come at a has an issue with its prime business, decides it doesn't want to do it anymore because it encompasses quite a lot of risk, and as a result, bnp goes i will have some of that. alix: i have to wonder for credit suisse, does it clean house enough? matt levine, who writes for bloomberg opinion, was talking about the fact that it wasn't a hedge fund, but the wealthy client who went to credit suisse and

it now owns a little more than 20% of iag. iag's ceo is leaving next month. iag also owns iberia.nes, boeing has another problem with the 737 max. inspectors have discovered rags and tools left in the fuel tanks of newly built planes. boeing is now looking at more than 400 of the jets that have been stored since the mac was grounded almost a year ago. the gun will give northrop grumman up to $14 billion in research -- the pentagon will give northrop grumman up to $14 billion in research in an effort to modernize the u.s.'s nuclear weapons triad. that is your latest bloomberg business flash. let's get a check on u.s. markets. 0.3%, but thedown market is higher. the nasdaq is storming ahead, up 0.8%. guy: we are just off session highs here in europe. as you can see, we are up on the ftse 100. we are seeing the likes of hsbc bouncing back. the dax up 0.6%. cac 40 in paris up 0.8%. we have a $1.07 handle on euro-dollar. up next, we are counting you down to the european close. this is bloomberg. ♪ guy: stocks rise as china considers further economic stimulus, including a possible takeo

that's ryanair and iag. think that is a really well-made point, mark. let's talk a little bit about what may be goldman thinks would help at this point. airlineseen the restricted. what else needs to happen? mark: the first thing they are looking at is effectively restricting the amount of wages they pay out, and the government can help with that. the second element is around the slot restriction sizes. united talking about on a call this week planes flying over the north atlantic that are empty only because they want to protect their slots. the next stage of this could be, , whereaw in 9/11 effectively the airlines got a $15 billion part loan, part grant. will there be legal action against that from some of the more well-capitalized airlines? guy: i think you could certainly see some lawyers warming up on that one. i talked to michael o'leary last week. the thing that really stuck in my mind was he said in previous crises, what we have done is simple he reduced prices to stimulate demand. that is not going to work this time around. what do airlines do?

it is interesting that iag is not on that list.ing into this with one of the strongest balance sheets. to alex cruz,king who runs british airways, to ensure the balance sheet was in a position that it could withstand a certificate source of stress such as what we are experiencing at the moment. it had been a major effort ever since the financial crisis. effectively, that was job number one. so the balance sheet may be looking a little bit better than some of their peers, according to ehrenberg. in terms of what we need to know, let's find out about the virus. let's get an update with viviana hurtado. begin with want to dr. anthony fauci revising downward u.s. fatalities from up to 200,000 to around 60,000, but this is this the curve keeps flattening in new york, the u.s. epicenter, and social distancing continues to be practiced across the nation. still, in the u.s., cases are accelerating, and is on track to overtake italy as the world epicenter of covid-19 mortality. some nations globally reporting a spike. we are talking about i

iag is trying something interesting.ing at norwegian but pursuing this low-cost model expanding.ngus and it is trying to play that long game and see where it goes. guy: and we still have to think about i. and the impact brexit could have on it. -- we have run out of time. it's nice to see you. then cap from bloomberg news. let's check on the markets. spiking as we have seen over the past hour. .here has been a swing in wti something is going on. it was swamped -- stalling at the 47 level. and as you can see we are trading just out of the moment. more on the markets next, this is bloomberg. ♪ guy: live from london, i'm guy johnson. vonnie: and in new york i am vonnie quinn. this is bloomberg markets. guy: it's time for futures in focus column a big move in oil over the next hour. ira epstein is joining us from cme. we have a 6% swing in the last hour, any ideas? >> i think it's a combination of people coming back from holiday, they are not all back, it's the middle of the week, i think we are at the port where we will --

iag tried to buy the wheaton, abandoned that effort in january.ny, a sign uncertainty is weighing on global manufacturing. factory orders fell more than expected in may, slid 2.2% and was down almost 9%. the biggest drops, sport orders and investment goods. bmw is looking for a new ceo. harald kruger will be leaving in the midst of weaker profits and questions about his dealing with new technologies. he told the board that he would not seek a second term. he has been in charge since 2015 and been criticized for cutting profits and also over an electric car plan that seemed a little too tentative. your bloomberg business flash. let us stay in the car sector. bmw loses a ceo. i spoke to jaguar and land rover's ceo about how he believes the future of smart mobility will be very much electric. take a listen. -- jaguar and --d rover are british bands brands and they have outstanding vehicles. employees,y of our localized in the u.k., very creative engineering -- engineers. ofdeliver this combination bridges design and engineering integrity, and that is

for boeing, but iag ordering a number of 237.hat is fascinating. this is bloomberg. ♪ ♪ vonnie: a big move for the offshore. the one strengthening and chinese president xi jinping talking to president donald trump on a scheduled phone call. saying he is willing to meet the president during the g20 meeting, guy. guy: i wonder whether this undermines the case for the fed to do anything tomorrow? sounding ant and xi lot more optimistic for a deal going from here. at least they are talking and that is positive for the markets. what does the fed do next? we will find out tomorrow. this is bloomberg. ♪ is is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: and from london, i'm guy johnson. this is "bloomberg markets." let's turn our attention to other news pay facebook unveiling plans for a new cryptocurrency that will launch as soon as next year. bloomberg's jury wiesenthal spoke to facebook's head of markets to discuss how the cryptocurrency will be regulated. >> we decided not to enable crypto currencies that will y

but look at iag and cineworld.one of the most exposed stocks in the world too long haul. a bounce this morning definitely now fading, only up by 0.8%, meaning we need to gain a little more traction, but nevertheless, unconvincing it seems at this point. we still don't know exactly how global governments are going to continue to react to this. our restrictions going to get tightened? pcr tests on arrival, that is a difficult one to deal with. to mystically, it is interesting. cineworld up by circa 3%, so the market is separating out what is happening in terms of domestic stocks and those exposed to international travel. interesting in a gang in terms of the reaction. what are we going to do next? we are going to continue to keep you updated on what is happening in the european close with the emergence of omicron. david heyman, professor at the london school of hygiene and tropical medicine, will be joining us. he spent an awfully long time at the world health organization. he has great context that he can bring us a

iag says cash flows were positive and the third quarter and north atlantic demand has begun to surgethe u.s. has began to reopen its borders. iag says bookings are recovering faster than short sales and it says the premium leisure segment is doing particular well. -- particularly well. peloton shares fell. the fitness company resolves to reduce guidance and apply weaker demand than expected. it lowered its projections for subscribers and profit margins. the company admitted it underestimated the impacts of economic reopening. the u.s. justice department is looking at whether credit suisse is complying with a 2014 guilty plea. and that is your business flash. guy: thank you very much. the president is speaking on the jobs report. let's take a listen. pres. biden: the unencumbered rate fallen again today, down to 4.6%. this included a drop in employment for hispanics. our economy is on the move. we learned that in october, our economy created 531,000 jobs, well above expectations. we also learned that job growth over the prior two months, august to september, with nearly 250,000 more j

that --is interesting decided he's going to defer his retirement at iag, potentially to take advantagef the situation. obviously, he is trying to deal with the situation on the ground. back to the fixed cost issue, ?hat is the relationship how many of the aircraft are going to be released? could contracts be broken? mark: the reality is you won't be speaking not only to the lesser ones, but the entire aviation ecosystem. we've been talking about whether slots need to be taken, and that has obvious be -- that has obviously been relaxed. you will be talking about whether you can refinance. you are going to be speaking to your fuel counterparts. you are going to be speaking to your boeing and airbus. to think this is just an airline problem and just about helping the airlines from government intervention, this goes well beyond the airline sector. it is going to come down to how good and how stronger balance sheet is. manduca, thank you. i have been trying to call the bottom in airline flights and book a vacation, but i just can't seem to pull the trigger. if they cut capacity, it is a who

mark: i will tell you who has a lot to get through on today's airlines, specifically iag. they had a lot of technology issues causing huge disruptions in the u.k.. the homeland security secretary, john kelly, saying that he may ban laptop computers in cabins of all international flights. bill: it would be a huge inconvenience and airports and travelers at airlines. u.s. is a threat that the is trying to figure out how to respond to. a few months ago they introduced this laptop been for about 10 airports, but the fact that they are considering expanding it to europe means that they see something very serious. holdup isow what the if it is that imminent threat, but it will be a big inconvenience for a lot of people. usk: bill ferris telling everything that you did to know about trump on this holiday. taylor riggs has more in new york. france -- vladimir putin is in france. told australian television that it is the russians who just -- we tried to destroy the fundamentals of democracy by interfering in the u.s. election and the recent one in france. arrest placed on the south

iag is down hard. easyjet is down hard and dragging the european equity market lower.llar, on nearly 1.18. the stoxx 600 is little bit of an outperform or, tech is doing relatively well, but the gold story is front and center. alix: really front and center and

iag announced it was pursuing it. last week, we heard it was abandoning its pursuit.ack of that, we heard today they have announced a share sale and 3 billion krone and that was almost half of the market capitalization before the announcement and that rattled investors. that is why we saw that selloff. , take ae stock declined look at the bloomberg. , investors liking the cash injection, easing concerns about viability. guy: absolutely. one of the reasons is we have the involvement of norway's riches man. walk us through his involvement. john friedrichs and is part of the consortium underwriting the issue. he is worth $7.9 billion. he has been looking to diversify his wealth and this will be his first foray into the airline business. he is known for driving a hard bargain. he thinks he will impact norwegians operations more positively. we have seen that in the details. we have heard they're are going to turn more to profitability rather than its rapid growth. people thought that was one of the problems a while back. if you take a look, i have a chart that illustrates

they showed signs of improving with iag earnings surging last quarter.est business flash, vonnie. vonnie: it is time for our quick takes. the nation's productivity is calculated by dividing producers and labor. economistsfounding is why productivity growth has slowed. there is a lot of disagreement on why, a mismatch between jobs and skills, fewer renovations and aging populations. the economy depends on productivity as well as issues like free trade or national debt. u.s. productivity gains were have in the last decade through 2006. in the u.k., it took eight years for productivity to return. productivity slumped to a all new low. critical to gauge progress accurately. to measureassessed the output of employees, it is harder with service workers. in the 1950's, economists looked at the element second should it to productivity leading to a complex measure call total factor productivity, which calculates the efficiency in which they bring capital. service workers' efficiency remained hard to track. the former fed chair alan greenspan said it was not credi

terms of shifts as people might be going less far, but that is at odds with airlines like lufthansa and iaging us. they are saying long-haulers coming back so i am curious what people are looking at. axel: our visibility is a bit different than some of the airlines, so the tend to use us within 30 to 60 days before they travel. what they say -- what we see is the big cities are on the top of the list. and you have more sunny destinations like dubai, abu dhabi, mary cache, morocco -- mary cache and morocco which are very popular. it is pretty broad and pretty much and very attractive and she sought after. there are signs of people going to second or third tier destinations that is just starting. that will be interesting to see if that trend continues. alix: for you as a business, how are your costs holding up and how are your input costs being managed through this time? are you noticing higher labor or different issues when it comes to inflation? axel: absolutely. we had even before the crisis really started, last year the labor market was hot and we had strong and high salary increases, and

we also have ryanair, easyjet, and iag all in this package. vonnie: thank you for that. get more on this story and the airlines more broadly with george ferguson, senior aerospace, defense, and airlines analyst for bloomberg intelligence. we already know mike or o'leary -- we know already know michael o'leary has a problem with this bailout. how much pressure is there to subsidize the airlines, and if they don't, does lufthansa get an advantage over everyone else? george: we think the government's are clearly going to set the stage for competition in the airline industry going forward. in western europe, i suspect a number of countries will support airlines. we thought lufthansa would be supported. europe, andgamut in you can have some very tourist type airlines like ali talia -- al-italia will survive, but lufthansa is very important to the german economic machine. we see it supporting its exports around the world and its business travelers as well as it tries to keep a stake in the but there aress, some governments that will not be able to support its airlines. we saw

iag trading strongly.ill have a material impact on those businesses and our ability to travel. the euro up above 1.14. we do have the ecb coming up tomorrow. let's talk about

we saw at the paris air show ast month, we heard from iag letter of intent saying they would by 200 ofxd buy 200 of the 737 jets. emma chandra with our stock of the hour. that is boeing today, right now down 1.3%. let's check overall u.s. markets now. indices are lower today, led by the nasdaq. chip stocks are climbing. the nasdaq down 9/10 of 1%. the s&p dragged lower by chip stocks as well. banks like state street down by 3.5%. symantec up almost 3.5%. there's word that the broad, effort to take over symantec -- the broadcom effort to take over symantec is gaining steam. stay tuned. this is bloomberg. ♪ ♪ guy: 30 minutes left in the european trading day. from frankfurt, i'm guy johnson. vonnie: in new york, i'm vonnie quinn. this is the european close on "bloomberg markets." guy: clearly deutsche bank a big factor in what we've been watching today. focus is what is happening with deutsche bank. that continues to be the story. initially popping up this morning. it is finishing towards the bottom end of the daily range, trading down by 5.31% at this point. the stock really getting knoc

there is some talk in the sector -- iag don't sense a lot of appetite at the usda for that., last year, it was a little too late for farmers to make their planting decisions. they were given this assistance. that doesn't apply this year, obviously. the better thing would be for the president to have a nice ceremony on friday with the chinese. encouraged that they are still coming. even in light of what some have called a tariff threat. the president doesn't issue idle threats. i will be hopeful this weekend praying for a good conclusion. >> you will be at the white house this afternoon to talk about immigration. talk about what will happen with immigration. >> i don't know what's going to happen. i suspect we will hear from jared. they are working on a more comprehensive proposal. the proposal they had a couple of years ago was actually a winner. it gave a lot to people on both sides of this issue. the crisis at the border enhances the likelihood of people coming to some agreement. what was once considered a manufacturing place is really real. they will find in offramp and a

you are also seeing some airlines today flying higher, some big upgrades at bank of america for iag andnumber of other carrier -- other carriers. a high level nothing is really moving. the countdown to the close starts right now. >> the countdown is on in europe. this is bloomberg markets, a european close. with guy johnson and alix steel.

iag slashing fourth quarter capacity to conserve cash as fresh travel restrictions continue to hit demandsofter when it comes to equities, down by 0.3%. tech is the lead losing sector in europe. most sectors are down, but travel and leisure is the most positive sector. down at the bottom of that very tight range we have been occupying, the s&p down as

take a look at iag, those shares are down. there is carnival on the day, down 2.9%.ader perspective, the all world index gained by more than 8% but more often, the reaction has been down over the same time for other breakouts. by2010, the index dropped more than 2%. be greater likelihood might to the downside, ultimately it probably has to do with weather the corporate profit outlook is affected or weather it remains more of the headlines care. haslinda: thank you so much. let's get back to our special coverage from the world's economic forum in davos. about his optimistic outlook for demand and the confirmation of india's outsourcing sector. >> a lot of work in what we call digital areas around cloud, data, experience, a curing nicely. the outlook is quite positive. so gung hos not about it. what drives demand? >> the way we look at demand is fragmented. the digital demand is fantastic. we had our business growing at 40%. it is growing between 15% and 20%. other parts of the business are growing more slowly or sometimes shrinking. clients are focusing on digital tra

market, given the fact we have the brexit story, which we were just discussing, trying to understand iagwhich owns british airways, will have a problem flying in the event of a hard brexit? do you try to analyze the market and understand the profitability of these companies and potential for that going forward? how much of a coin toss is it? george: frexit is a big variable. but even away from brexit, when we look at the european market in 2019, we still see too much capacity coming to that market. i talked about 4% growth in the u.s., we see 5% in europe, so even more. i would say if brexit goes badly and really does interrupt air travel, you are in a bigger mess in europe. we think they will find a way to work through their problems, because it is in everybody's best interest to keep airlines flying between the u.k. and the continent. but if it does not go well, it could be even worse. we do see some deteriorating profitability in these european airlines as well. vonnie: thanks to george ferguson. and checking markets, we are off of our lows. s&p 500 down 4/10 of 1%. a little bit lower

also earnings from iag. did i do ok? alix: that was good. reading the prompter correctly. tomorrow, jobs day. guy: is that all you people do? alix: that is all you have to do. coming up, stephanie kelly, aberdeen standard investment head of research will be joining "ounce of power -- will be joining "balance of power." guy: we will go to radio in our. on the radio show will be asking the question is andrew bailey the unreliable boyfriend to point out? that is coming up. this is bloomberg. ♪ >> from the world of politics to the world of business, this is "balance of power" with david westin. ♪ david: from bloomberg's world headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power." as washington continues to struggle with president biden's fiscal plan, britain took a surprising step when it comes to monetary policy when the bank of england surprised everybody by not raising rates but keeping things where they were. our colleague francine lacqua sat down with andrew bailey shortly after the decision was ann

air france, lufthansa, iag.k there's still a bunch of work to be done to make this airline really as profitable as other peers. guy: in terms of what is going to happen next, clearly the process is going to roll forward. i'm not sure you got a sense of what is happening at alitalia, but i have comments from the finance minister talking about this. the consolidation of the european airline space, when you look at the united states and what has happened in yield markets and what could happen in europe, how big is the gap right now? reporter: what we see is the european airline market space is a lot more fractured. we follow it very closely at bloomberg intelligence. my team follows european airlines all the time. it has a lot more countries that have national carriers or national champions ike alitalia that are in the marketplace, smaller than other competitors, not as motivated by profit, so they show out cheaper fares to try to take some market share, and really hurt the marketplace. we really see the europeans

iag getting a stake in the airline. it is considering a takeover and it has admitted to doing so after bloomberg first reported that the company was waning of it. a deal could value the norwegian company at a market value of roughly $900 million, $3 billion including debt. and i want to talk about first group, not a company we talk about every day. it is a bus operator, it has rejected an opportunistic approach of from private equity firm apollo management, as the company struggled with underperforming rail routes in the u k and competition from discount airlines from the u.s. the indicative bid was highly conditional, but they say it is too low, according to the great western rail line and the u.s. greyhound bus brand. shares up by 3.9%. vonnie: as you know, investors grappling with dc drama, geopolitical risks, trade tension and hawkish sentiment. manager,s is portfolio head of retirement solutions at jpmorgan management where she oversees about $124 billion in assets. and do you spend most of your time these days on

facing airline stocks today, which are down very sharply, like iag and ryanair.ing to continue the conversation. if you would like to follow boris johnson a bit more, go to live on your terminal. we are going to be talking to the ceo of southwest, gary kelly. we will get what is happening in the united states as we start to see the reopening's there. what does that mean for demand for airlines? we will find out. this is bloomberg. ♪ phase any: so we will reopening to inshore -- guy: welcome to our bloomberg television audience and our listeners on bloomberg radio. we need to talk about what is happening in the global aviation industry. the u.s. economy is starting to reopen. will that mean greater demand for airlines? and if so, how quickly will that demand come back? kelly, me as gary southwest airlines ceo. thank you very much for joining us. today we have seen pictures on social media of packed airplanes flying around the united states. what is your sense of how quickly demand for aviation is going to return in the u.s.? gary: thanks, guy. it is great to

iag also owns aer lingu -- owns spain's iberia and aer lingus of ireland.has been a volatile week in the markets, with very volatile intraday price action. here to see how it has played out in the world of etf's is bloomberg's to de bry felt -- katie greifeld. katie: i'm going to take us to the ark innovation etf, cathie wood's biggest fund. it showcases the huge rebound yesterday. this etf is still up 7% over the past two days. if you zoom out, it is a much different picture. looking over the past year, it is all the names you would expect to see as we deal with global central banks tightening and now russia's invasion of ukraine. you have chinese tech followed by the msci, russian etf's, and arkk, some of the biggest losers, even with the rebound we are seeing. tom: there have been some major moves in chinese tech companies listed in hong kong. we have seen losses of up to 4%. it has been a bit more stable today. there's continued concerns about the regulatory environment there, then you have the geopolitics and every thing that flows into it. what is the

iag, the owner of british airways, iberia, aer lingus, down by 15% today, trading at 130 dollars.ks are down hard and on big volume. the close is next. this is bloomberg. ♪ every day in business brings something new. so get the flexibility of the new mobile service designed for your small business. introducing comcast business mobile. you get the most reliable network with nationwide 5g included. and you can get unlimited data for just $30 per line per month when you get four lines or mix and match data options. available now for comcast business internet customers with no line-activation fees or term contract required. see if you can save by switching today. comcast business. powering possibilities. guy: an ugly session for european equities. we are led lower by travel stocks, energy stocks, banking stocks. the countdown for the close starts right now. >> the countdown is on in europe . this is "bloomberg markets: european close," with guy johnson and alix steel. ♪ guy: 30 minutes to go. what do you need to know? equities down hard, and down on really big volume. that is certainl

in the middle of the pack, you have a iag and easyjet. by no means free of capital risk, but i think the u.k. is a more complicated story. about whattalk a bit strings would likely come attached to any aid. how do you see that developing? mark: i think there's a couple of things you need to think about. whenever you inject capital into an industry, the industry is going to look first for grants. then we are thinking it just rate loans. then you start getting into the murky world of loans that come with higher interest rates. we have obviously seen that before with german banks. then you know we get preferred stock, convertibles, and common shares. it is in that last bucket that you ultimately start getting into a world of dilution. there may be restrictions here for many years to come for anyone who takes these loans, takes this equity. aside from the conversion of equity into debt and the dilution of shareholders that will ultimately follow, i think any government aid is likely to be mired to some very punitive covenants. like i said, mu

norwegian trading down by 24%, iag up. i want to mention union pacific.rade war seeing the showing up in the u.s. rail sector. really solid volumes coming through, a good piece of economic news we have when it comes to the u.s. economy right now. coming up, more from the world economic forum in davos. this is bloomberg. ♪ live from davos, swiss or lend on bloomberg -- switzerland on bloomberg tv and radio, day three of the world economic forum in switzerland. alongside tom keene, i'm jonathan ferro. tom: it is getting colder. the sun going down in davos. a busy day tomorrow. right now without question, are most important interview on this thing we take for granted, the world business economy, and that is logistics. simply moving stuff around. you weres the biggest talking about? jonathan: i think 400 meters long. is a modern shipping and logistics. agoere joined a few days and made clear a decade ago, the way we underestimate logistics of moving the stuff of the global economy. does president trump and his lateral trade policy underestimate the moving aro

iag is up today. lufthansa is tracking up as well. the airlines are having a good day.llar, less so. we are down by .4%. basically had two big pieces of inflation today. one from the united states and one from europe. it does seem as if the dollar has come out on top in terms of this trade. people are talking about sort of moving into 1.15. we have mock -- we have much to talk about. max kettner is going to join us. looking forward to that. this is bloomberg. ♪ guy: friday the 31st of march, the final day of the week, final day of the month. final day of the quarter. european equities a bid. they have had a pretty good quarter. does that persist into the next quarter? as the economic headwinds start to drag down those equities? we are going to talk about this. the countdown to the close starts right now. >> the countdown is on in europe. this is "bloomberg markets: european close," with guy johnson and alix steel.

british airways and iag delivering guidance ahead of what will be a cautious summer season.ent waivers. spain backing the proposals, but vestige are -- but vestager siding with merkel, and macron saying the priority is giving shots away. let's get back to this big payroll

you see it very high and the weekly option, so i will take , so iage of the plateau can capture the previoust announcement. julie: so you are looking at 61.5 call and 61.5 selling as well, almost a month apart, thinking maybe there is too much expectation for a move priced in? >> right. i am selling this week 61.5, that buying the regular. that will collapse if the orkets days here, stays here go slower. if it is higher, they will work in tandem to buy back that weekly option. think if the volatility on earnings announcement after it comes out. julie: my favorite part of all of this was the way the graph looks like was the unicorns horn. bringing it all together, joining us from the cboe. i have not tried one. i have no plans, but maybe starbucks will be ok without it. scarlet: thank you so much. let's get a market check. get the same levels on the s&p, hovering near all-time highs, 25 basis points on the day, strength in the nasdaq. pretty much all across the equity indexes, you are seeing the gains. paired off a little bit. the 10-year yield is going down. strengthening on the bond market.

is when iage of zelle send you money, it will go directly from my account to your account.et's improve our system so that they make it much easier for you to cash out of their account. they will be launching that in the first half of this year. much.: thank you so some competition for venmo heard many fed officials think a rate hike would be appropriate fairly soon. a look at what else they discussed including the downside risks of the strong u.s. dollar. this is bloomberg. ♪ oliver: this is "bloomberg markets." aanda: many fed officials see rate hike fairly soon if the economy remains on track. edged higher. the dollar fell on the news. what did you think? joe: i'm always impressed by the degree to which this federal reserve avoids rocking markets too much. excellent at communication. we see a bit of a move. oo much thatt caught people by surprise. a bit of discussion about the eventual balance sheet drawdown. predictable concerns about how fiscal stimulus might affect things. i don't think anything was that dramatic. oliver: they now have another goal post they can put on

the owner of iag joined bloomberg. >> following the announcement today, the way the decision has framedant hurdles to be cleared. but there's a better chance of a going forward today than it has been in the past. >> this is a very, very busy airport. buthave been not behind it now you sound like you are behind it. you are not going to put 100% behind it -- is this the project you are going to drive forward? behindgoing to go 100% heathrow honoring the commitments that have been given. we believe there is an economic case, but there is no way the cost of expanding heathrow should be passed on to airlines. if heathrow wants to expand the airport, they should deal with the policies. is an aircraft coming in behind us. you say they are going to cap fees. presuming that's dependent on the bill here at nats the end and on maintaining -- who would be the best contractor to do that? do you think they will end up playing a big part in this story? ctractorst believe associated with the shareholders are linked to partnerships the shareholder has should be allowed to participate in the expansion of

british airways parents iag is reviewing outstanding orders.es longer and adding more seats to others to cut spending. they say overcapacity and the brexit vote could weigh on earnings. in the airline says it is seeking voluntary departures. hong kong is taking steps to cool off the world's highest home prices. the government raising the tax at all residential purchases except for first-time buyers or permanent residents. home prices are up 13%. a short-term dip ended back in march. businesshe bloomberg flash. we will be right back with more on politics update. this is bloomberg scarlet: this is bloomberg markets. we want to turn now to politics because we are -- have three days left to go. donald trump is beginning to close in on hillary clinton in the latest polls but hillary is favorite to win and if that does happen republican leaders could face heavy backlash from failing to endorse trump as much as a traditional candidate. with something the party could be on the brink of the civil war. our politicsw is reporter. what are we hearing on th

how does that affect iag? the research director cathleen brooks says u.k.ities' newfound sensitivity to brexit news will continue as it gets going after wednesday with losses in air carriers this week over the concern of their ability to operate in the eu long-term likely to spread to other sectors. this is what you want to keep an eye on post-brexit negotiations with a kickoff on wednesday. of data wase eurozone pmi manufacturing services cow visit. higher than expected -- services composition. higher than expected. higher than july 2 thousand seven. hiring picking up in services, manufacturing. as momentum gathers pace, does it put the ecb under further pressure to exit from its extraordinary -- the back of the data. 108. we are up for the first day in three. on track way for the weekly gain. since the ecb last meeting on march 9, the euro has risen. -- 105 in the third. eight are predicting parity. like it that, 108. nowhere near parity. time will tell if those are correct. julie: it well. i wanted to check on the s&p 500 . it is gyrating to some extent