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.

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

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

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

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

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

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

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

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

matt: let's talk also about iag. british airwaves -- airways as well as the spanish -- >> yes. it is kind of half-and-half between madrid and london in terms of their key bases, and iag sold an initial stick to qatar back in 2016. that was big news. you know, a middle eastern company coming in for a stake in the main british institution, which is british airways, and now we have seen them increase it. there was actually a rule change recently where they changed the allowances for foreign ownership in airlines. i think it was up to 26%, and there is actually a rule in the u.k. that if it went up 30%, they would be required to make a takeover offer for the company, so we would not inspect to see it coming up much further now given it is heading toward that 30% already, but, yeah, it is kind of a little bit controversial in terms of the investment but definitely something i think investors will take on. matt: so they increase their ownership to 29.1%. it is interesting because it comes at the same time there is speculat

iag shares rise. norwegian is going down.berg. >> let's talk about what is happening in these markets. marketshave is the looking a little negative when it comes to the french markets. the banks are the big story this morning. socgen and bnp paribas are suffering this morning. koester trading on the downside as well. matt, it is the french banks that are suffering. hsbc under pressure as well. hsbc i would have thought watching the global trade story. matt: we'll continue talking about that. markets are following very closely, especially after the white house -- on its trade news with china by demanding a $200 billion cut in the u.s.-china trade deficit. our next guest says any weakening of the u.s.-china trade relationship will be a problem for germany. this is the president of the kiel institute for the world economy. still with us is the head of em cross asset strategy at ubs. i am also covering developed markets as well. we will be covering everything. let me ask about the boosting of targets by donald trump. that chinadi

iag, slightly more optimistic. whether they have a target they can maintain or whether they have to revise them. to the industry, klm cutting up to 5000 positions. this comes on top of the industry cutting 400,000 jobs. either they were fired or furloughed. what at the end of this pandemic you see as the loss of an limit to the industry? >> there will be fewer people in this industry. from airbus. they said they would cut thousands of jobs. lufthansa, which like air france and klm, received bailouts. there is only one way to get through this. that is to cut costs. ground your aircraft or get rid of employees or both. raise fresh funds as we heard from iag. they are increasing money. arer airways, they achieving they announced they in spain.an airline they want to renegotiate the price tag. they only want to pay about half of that. ways,e seeing creative less creative in terms of job cuts, airlines trying to cut costs. when i flyy, vacation,for work or i'm going to look for a hotel to stay in. restaurants to check o

iag is down by 2.9%.ad a mixed set of results coming there, and guidance i suppose coming through from the aviation sector. air france perhaps more optimistic. iag says it operates in a different regulatory space and a different market to air france. the market is down on that stock. let's get a bloomberg business flash. here's annabelle droulers. >> thanks. natwest group says it aims to distribute a minimum of one million pounds a year from 2021 to 2023 via a combination of ordinary and special dividends. that's after the u.k.'s biggest corporate lender reversed more of the provisions it took earlier in the pandemic, helping it beat earnings forecast in the second quarter. >> strong performance across all of our businesses, driven by an increase in lending with mortgage growth. the mortgage market here remains very strong. as we come out of lockdown, consumer spending is starting to recover back to pre-covid levels. what we are seeing is very low level of default. businesses have been remarkably resilien

. >> let's come to you, iag.ation business downplaying the effects brexit is having on the company so far. brexitof the big issues, being one of them. the fair war going on. iag not suffering as much as some others. shares, higher by 2%. finedcing they have been by a data breach. >> thank you for joining us. you can get the latest stories. we also had results out from the biggest european insurer. beating the street estimate. we were looking for 2.9 9 billion. it left its outlook unchanged. , it earnedteresting more than half in the first half. he said we could see a correction and equities in the second half. visibility is not great. they want to stay cautious. >> keep an eye on that. numbers broadly in line. just like other french banks, strengthening their capital buffers. we are going to be focused on the very big picture around trade tensions. look out for movement, anything sensitive to trade tensions could be on the move. future suggest we will be considerably weaker, particularly over in france. looking p

guy: iag under a little pressure.the consolidated group is talking about fuel prices, saying they are having an impact. he is talking about them being a challenge for 2019. he says the business has largely hedged out at around 20%. french atc strikes are definitely costing the business tens of miions. in terms of the numbers they are watching at the moment. basically, you have to reroute aircrafts around the affected areas. you basically have to route some of these flights in long divergence to get around some of these atc strikes. that is coming out at the moment and as you can see, iag, iberia, aer lingus, trading down pretty strongly on the back of that. matt: very interesting to see that. the stock is up 5% year to date, even with the drop. have liked iag. the me give you german pmi numbers coming out. they are dropping on my eco-screen. we are looking at a services pmi at 52.1, in line with the estimate. , a littleite number better than estimated. , the estimate was for 53.1. slightly higher than the estimate, fr

willie walsh runs iag, which includes british airways.not normally that good, but this time around they have come through. they've seen a very solid q1. it has beaten expectations. you can add in the extra kicker of the fact that we are prices coming down. big words like iag heavily hedge, but does make life easier at the margin, though in some ways it probably mix it easier at the margin for companies that don't hedge. the other thing i want to mention is, there are nine stocks going ex-dividend today. there are some fairly big names in the mix. danone is one of them. dividend on going ex- the stoxx 600 today. up next is the market open. this is bloomberg. ♪ guy: you're watching the open. at one minute away. commodities in particular, what is happening with oil. for the five dollars per barrel. that will revert -- brittle into a couple of different areas. what impact will it have on the -- equities? they will be opening softer this morning. not maybe massively but watch as the day progresses. moment, down by a bound .3%. london looks fla

iag, the owner of british airways down over 2.5%. inditex, an intriguing story about the changes at the top. the daughter of the founder is taking over. losses of 5% in the first few minutes of trade. glencore, an activist investor pushing the company to spin off some of its coal assets. pressure of about 1%. let's get the bloomberg business flash. >> easyjet says the omicron variant of covid-19 has had an impact on short-term demand but has not derailed a recovery and air travel. the u.k. discount carrier has reined incapacity plans for the current quarter as some customers delay flying and put off booking. lundgren said there are many uncertainties in the coming months. >> we always knew there were going to be uncertainties. we think this year is going to be a year of uncertainties over the winter. we also believe there will be a strong pickup into the summer. >> jack dorsey is stepping down as chief executive of twitter handing over control of the company he cofounded in 2006. the chief technology officer is being promoted and at

iag, of course, at the forefront. dani: a very volatile week, six days for iag. we're looking at shares at the open, of more than 1%. there have been concerns surrounding airlines given the u.k.. introducing new travel requirements you need a covid test 48 hours before traveling into the country. but there british airway apparent has fallen 15% since not past friday, but the friday before. this is a nice barometer of buying the dip. expectations for normalization. i should also say easyjet, expect to see pre-pandemic levels of travel by summertime. so some good news sprinkled in there along with this buying of the dip. another company i'm looking at is roche, shares up .7%. they have a new antigen test date're -- they're putting out by the start of next year that will help distinguish between covid and the flu, so you can see the practicality of that. they're going to apply for emergency use authorization for the start of 2022, some marginal gains in those shares. and finally, taylor wimpey, the u.k. homebuilder, some speculation driving this one up a similar .8%

matt: iag is interesting. airways is accessing money from the spanish government. well, which is a german airline. are they going to be able to get multiple countries to help them out? for example, is austria going to join in? is belgium going to join into help lufthansa. lufhtansa isn't talks and runs the state carrier for switzerland, belgium. it is likely to follow the german -- essentially, with the chancellor of austria is seeking that vienna remain the transport hub with direct flights to north america and asia. the swiss government is in talks ufthansa for a loan for its swiss unit. there is a lot going on with the units of lufthansa. british airways will not be able to access the spanish loan, which is restricted to the spanish areas of iag and not british airways. matt: right. of course, they are together under the iag umbrella, british airways and iberia. thanks so much for joining us. i want to point out as well, we were looking at video there of my number two favorite airport in the world, berlin t

iag down 27 and change.ps across travel and leisure, anchoring the big drops in every other sector in europe. anna: europeans are facing increasingly draconian restrictions of public life as the government moves to limit the coronavirus outbreak. germany is partially closing borders with five other while residents are being asked not to leave. joining us now is elizabeth, a senior research analyst in modern deterrence. a think tank that specializes in defense and security. what is it around the defense and security brief, i suppose, that you can lend to the situation, how to prepare and fight coronavirus in europe? people of normally defense -- people think of defense and security as a country attacking another one, but the security can be affected , as we are experiencing, by a virus, and it is nobody's fall, it is mother nature attacking, you might say. the disruption to daily life is what we are seeing now. unprecedented disruption, and if i may add, people at a total loss about how to respond, what to do

today, which will be of interest to iag. >> you know better than anyone that iag has been so sensitivewith the story of the eu looking at allowing travelers in who are fully vaccinated. we will see what this announcement holds for the company later today. iag reporting its earnings, and the interesting thing here, they are being very cautious saying they only expected gradual reopening. pre-covid levels will only hit in 2023. a lot of caution from them. matt: we got adidas earnings earlier. what do we see? >> this is a story of benefiting from the growth in china, the chinese business is helping adidas a lot, but they are also upgrading their forecast. really optimistic about the start of things getting back to normal. sporting venues opening back up again as well as european soccer championships. all of that adidas says will help them and mean they are going to have a higher full-year profit. anna: and we got numbers out of siemens. >> siemens benefiting from demand in china, raising its guidance for the second time this year. revenue growth as much as 11%. the high-end was in the hig

iag, owner of british airways, is down by 2.1%.ant expansion in the spanish market, down by 1.5%. some of the spanish hotel stocks are under pressure as well. you do see a read across. barcelona is a big tourist hub. as a result of which, the attack that we saw in barcelona is having a meaningful impact on the market this morning. this is bloomberg. ♪ guy: 44 minutes into the cash session. reporter: believe have killed five suspected terrorists after confrontation in a town south of barcelona. this came's hours after a van rampaged down a city street. six civilians were injured in ls, second incident in cambri which they said was connected to the barcelona attack. >> our neighbors in madrid, brussels, berlin, or london have experienced the same horror that the people of barcelona have suffered and i want my first thes to convey to them affection, solidarity and affinity of the whole of spain and the whole of the world. reporter: donald trump will not move forward with his planned advisory council on infrastructure. the infrastructu

iag, up by from 2.6%. pearson out with numbers. that stock is up by 1.9%. basf down by 1.7%. speak to them later on. the royal bank of scotland has a plan to cut costs by 2 billion pounds as it posted its ninth straight annual loss. .ere is richard partington also with us, patrick armstrong, at a company. when will rbs report a profit again? comments on the interview manus cranny gave earlier on. that by 2018, rbs should return to statutory profit, something they have not been able to do since the crisis . they have posted about 50 billion pounds in cumulative losses since that time, so this has been a real difficult, painful turnaround for the u.k. government, which owes 70% of the bank. light is there at the end of the title where we will see hopefully it managent corrects a profit best management corrects a profit in 2018. see if management corrects a profit in 2018. >> they probably have got a sustainable return on equity, 5%, 6%. once they get more profitable, we are more attracted to the french banks, 3.5% dividend yields. we think very good value in france and you get

am, what is the story with iag?esults look about what you would expect for european airline in the first quarter. some pressure is on the fed because competition is very stiff. you have been seeing impact of higher oil prices. broadly, this looks like what analysts were expecting from iag. it may be, as well as their hairs -- shares hitting a low, there may be a slightly positive open this morning. matt: we will watch that. dani, what do you have? dani: shares are likely to decline today. they saw another trading slump for the first quarter and has the worst fixed income trading revenue of all european peers. it plunged 34%, 20 percentage points more than the average among analysts. this is going to be especially challenging for the ceo, who has only been in the job about a year. right, thanks very much for joining us. get all the latest stocks stories from the equity team on your bloomberg terminal and via the bloomberg mobile app. let's get the bloomberg business flash from debra mao in hong kong. debra: matt, occ

iag, adidas sent what is happening with the china story, and also iag and their exposure to russia. they fall 6% after their losses came above the expectations. we do expect return to profitability but clearly underscoring the struggles of the airline industry adjusting post pandemic. adidas following after softer demand from china. and ing, their exposure to russia, they are taking a hit on this. they unwind their business in russia down. let's get over now to mark. francine: let's get over to mark cudmore. he has been watching the markets. who looking at the selloff of stocks and bonds. mark: a lot of angst in markets this week. it is extremely bad year and an extremely rare years in markets. is not just to be dramatic on tv. this is the annual returns of stocks and bonds in the u.s. going back the last 49 years. going back to 1973, the blue bars are the anno -- annual returns of the s&p 500 and the yellow bars are the bloomberg u.s. treasury index. only one year in the past 49 have both been down in the year. that was back in 1994 when the fed shopped markets with aggressive acti

tom: you have got wizz air, one of your picks, alongside ryanair, and the legacy carrier iag, when it to that trading down story, talked was about the ability to maintain the pricing and yields we saw last year, is that a theme that will continue this year? alex: yields is es sentially a function of supply and demand. how may planes are in the sky. we are basically back to the pre-pandemic trend from the early 2000's, and with inflation, you tend to see flat unit revenue for the low-cost airlines, basically bears are flat year on year, which after a record 2022 is bullish for the sector. francine: how does the china reopening affect european airlines? alex: china is an important market, for tourism and a corporate market, it affects different airlines differently. like lufthansa a among european stocks would benefit the most because china is extremely important to german corporates, and a supply market for their manufacturing. iag it matters less, most of their airlines traveled to north and south america, so it varies airline by airline. most smaller carriers don't have a lot of traf

talk us through iag. the aviationwithin sector.time, they cap the furlough team and told us how badly things have turned out for that sector. what are they saying? dani: that's right. already they've gotten support from the spanish government, but they say they've gotten 300 million pounds worth of support from the u.k. government's corona corporate facility. this has helped them build against the fallout and extend british airways' a revolving kind of facility. basically, they want to cut costs and shore up liquidity. things have come to a bit of a head because they are getting government support but at the same time cutting thousands of jobs, but it really shows how much effort they are going to keeping things afloat. they are also restructuring various parts of the business. it's not just holding onto them just in case, it will be utilizing them. the other bit of news is the ceo is only retiring in september. he had delayed it because of the pandemic. matt: i see that iag as well as ryanair both have said they will get back to r

we speak with the british parent iag, ceo of the biggest cryptocurrency exchange. and up next, we speak to the chief executive of another company. those are all exclusive interviews. extend your questions on ib+tv . this is bloomberg. ♪ ♪ francine: welcome back to the open, everyone, 11 minutes into the treading day. these are some of the main movers will get to in a second, but european stock its -- we'll get to in a second, but european stocks remain unchanged. the focus for me also on that cpi did on wednesday in the u.s. there's been a lot of movement, not on the equity side of things, but on the fixed income side of things. luke hit more in just a second. let's get some of the stocks on the move at the open. we start with siemens camesa. this is basically renewable energy play, the siemens that we talk about day in, day out. but it's very clear that the supply chain had witness are set to go into let -- lapse into next year. this is one thing we keep an eye on looking at some of these siemens camesa stocks. but the guidance has been better than expected. t

in terms of leisure stocks, iag up by just over 5%.ctor are also responding to the reopening agenda but also the results out of the hotel space earlier on today. we see energy stocks doing pretty well. we will return to the commodities conversation shortly. brent now at $66, up by 1.3% compared to yesterday's close. we will return to that conversation around commodities. before that, covestro sees a bounceback in demand to pre- pandemic levels this year after sales sink in 2020. we speak to the chemicals company ceo next. this is bloomberg. ♪ when you switch to xfinity mobile, you're choosing to get connected to the most reliable network nationwide, now with 5g included. discover how to save up to $300 a year with shared data starting at $15 a month, or get the lowest price for one line of unlimited. come into your local xfinity store to make the most of your mobile experience. you can shop the latest phones, bring your own device, or trade in for extra savings. stop in or book an appointment to shop safely with peace of mind at your l

watching iag. airline theme running through this morning. : ryanair protecting a profit decline saying they have a pessimistic side. labor the concern. oil prices also. aey see there is going to be shakeup in the marketplace and the offering capacity in europe because of the height of the oil prices at $80 a barrel. talked to michael about the possibility of buying airbus aircraft. this is what he said. >> currently, spot prices are up close to $80 a barrel. to a that is going to lead significant shakeup of the industry as soon as this winter. some airlines is certainly can't survive this winter with oil at $80 a barrel. guy: sam, let's talk about the rate market. the interesting part of it is that this is another deal. >> this is according to the expansion of newspaper out in spain. over 1.5 billion euros. it is interesting the expansion has this today on the sidelines. it is interesting to see that we have this report out of this newspaper. today, the stock where it trades and also will be focusi

iag up more than 11%.up, we will look at what stocks might be on the move today, including shell. the oil giant will distribute $7 billion to shareholders. that is next. this is bloomberg. ♪ dani: welcome back to the open. we are about eight minutes from your cash equity trading with mouth -- most benchmarks pointing into the green. let's see what is happening under the hood with your stocks to watch. sam, thanks for joining us. some deal news coming out of shell. >> coming out last night for us, they have sold their permian business to conocophillips. the key part is they returned the vast majority of proceeds to shareholders, so very likely shares will rise this morning. mark: there is talk of a deal between national express and stagecoach. what is the story? >> those keenly watching the u.k. bus market, these companies have had effectively no one traveling on them and still at very low volumes over the course of the last 18 months. merging would mean they could spend more money on getting greener fleets

iag down by 4.4 percent.f france being the start of something? we have a special category for france which is amber. with special conditions around quarantining attached, the previously known south african variant is hanging on in france despite competition from the delta variant. that is what we are seeing in the markets today. let's get a bloomberg business flash. laura: bill ackman's company says it will no longer proceed with a $4 million deal for universal music after u.s. regulators raised concerns. the firm says that shared purchase agreement be transferred to pershing square and the group will try to find another buyer. zoom has agreed to purchase five9. in its largest ever acquisition. the deal aims to boost videoconferencing up against stiffening competition. the deal is subject to shareholder approval. tsmc's founder has warned that cost could go up and still fail to achieve self-sufficiency. morris chang says free-trade remains the best system to fulfill global demand. facebook is pushing back aga

hitcost of the iag could $100 million. good morning and good afternoon.urveillance."

iag and focus. i saw an update from heathrow.avel statistics but also renewing their call for sectoral support, not something that u.k. government has done. we work our way towards an open that looks fairly flat. in your mind and probably many people's mind, on the football. mark: it starts tonight. volatility normally falls during these big global sporting events. almost always, fx vol comes lower in july in those years where we have the world cup european championships. anna: it's official, the summer is starting. have a great weekend. mark cudmore in singapore. thanks to him for spending the last hour with us. i will be back with the european market open. futures fairly flat this hour. we consider the aftermath of that strong cpi number out of the united states and keep track on the g7. this is bloomberg. ♪ anna: welcome back to the european market open. one minute to go until the start of cash equities trading. here are your headlines. johnson and biden put brexit differences aside ahead of the g7 summit. a covid outbreak at

coming up, norwegian air announces a $350 million rights issue after iag drops takeover plans. bloomberg. ♪ ♪ matt: welcome back to the "european open." 18 minutes into the trading day, looking at mixed equity indices. let's get top individual stock stories with annmarie hordern. annmarie: let's start with phillips. saying upbeat on china, that is where they see sales and growth coming up. they also announced a buyback plan and beat estimates for earnings. sap to the downside. a bit of a mixed bag for sap. looking at the outlook for 2019, they are at the lower end, the stock down over 2%. norwegian air really plunging this morning, 15.5% down over a rights issue, as iag scraps plans for a takeover. matt: annmarie hordern, on individual stocks. a lot of earnings effects and m&a action. s&p posted mixed -- s.a.p. posted mixed earnings after more than $10 billion in acquisitions last year as europe's biggest software company shifts further toward the cloud. dutch held technology company phillips seems to shrug off the china slowdown thing, with niche markets feeling sales growth a

ryanair and iag among them. easyjet down 1.8%, the most in two weeks. arista down 2% here. bakery company that has been battling short-sellers in its stock. the stock has last more than half its value in the past three years. arysta has worked profitability will remain under pressure. at america and europe will weigh on profitability and optimizing capacity will take longer than expected. this ahead of the appointment of a new ceo. we are seeing arysta shares down 2%. modi indian prime minister has arrived in germany. he dined with angela merkel last night and the two will have further talks today. germany is india's largest trade partner in europe. this meeting comes days after chancellor merkel said reliable relations since world war ii are in some ways over. for more, we're joined from mumbai. let me start in mumbai. what does prime minister moby -- prime minister modi hope to achieve? >> he is on a trip for more investments from germany, europe's largest economy. germany is also one of the investors into the economy, as well as the single business -- biggest trade partn

more than 5%, the entire sector and names like iag and easyjet up double digits in the green.ered this yesterday and today. a huge bailout for lufthansa, 9 billion euros. needing to get the nod from the european union. and on top of that, the german newswire is saying germany is planning to lift travel warnings. and over the weekend, we heard that spain will be allowing andstic tourism in june opening to foreigners in july and spain is europe's number two country for international tourism destinations behind france. this will look different whether you are a hotel or an airline but this is offering a glimmer of hope for these companies bruised by the pandemic. set to eased is restrictions as well. what can we expect from the nation in great britain? >> england is different from northern ireland or wales. england is looking to ease some restrictions i june 1. -- by june 1. brits tonson is urging get out there and spend money. track to5, they are on open other stores including shops selling clothing, toys, and furniture. , you know this as well as i do, we watched dominic cummin

for a response from the likes of iag and carnaval. we will have more details on that next. bloomberg. ♪ anna: welcome back to the european market open. eight minutes to go into the start of cash equity trading. futures pointing to the upside. let's get to dani burger who has the stocks we are watching and one of those is astrazeneca. interesting to see the amount of money they do or do not make out of this exiting. a company to watch this morning. dani: it is really difficult on these positive vaccine lines. it's trials have come in around 70%. you don't really know what the prophet will look like from these vaccines. what we have seen over the past getweeks -- whenever we these positive vaccine headlines is a value really outperforms. need face-to-face interaction in order to function do better. astrazeneca might do better that we may see some of those beaten up companies outperform as well. danone andabout french job cuts? dani: 2000 job cuts. cut at theirobs headquarters in paris. it says it is hoping its adjusted operating margins should exceed 15% in 2022. they are try

iag says sean doyle will become ba, part of iag.his is interesting, given the plight of aviation at the moment, that we have seen that management change. we see that asian equities are not doing too badly today. up.ave the ms tia pacific chinese stocks are doing well. you see the selling of the chinese currency, very clear, so the pboc making it easier to short the chinese currency, unhappy perhaps with some of the strengths within of late. as a result, we see a little bit of a tick up in the dollar more broadly, but the dollar index as of now almost entirely flat. it's a holiday in the united states. trump and pelosi continue to blame each other in terms of lack of stimulus progress in the united dates as we edge our way towards the election in november. week ahead is going to be busy. brexit talks continue. virus restrictions in europe. banking reporting season getting under way imf world bank meets with plenty to talk about this morning. here are our top stories. >> new sparring over stimulus in washington. president trump and ho

iag up more than 2%. travel and leisure also getting a bounce back. renault down 2%.nder pressure because we do not know the economic impact yet. down 12%. why? the ceo and cfo resigning on the same day. anna: surprising to investors it would seem. thank you, annmarie hordern. let us get back to the overall markets where we are seeing a pretty flat picture. an interesting story. our markets live macro strategist. an interesting 12 hours. at the start of the trading day, we were expecting a bounce which we got but now it is unwinding. waiting for the u.s., i guess. >> when we do see the kind of selloff like we saw yesterday, we tend to see some price action which at -- with investors coming back into the market. it is probably too soon to tell about the severity and duration of the coronavirus impact. unlikely we could see a near-term bounce back but we are right nowlight calm in the markets. a wait and see mode. matt: the volume more than doubled. havethe european markets an effect on u.s. markets as well, how important is it for indexes to hold or show a bounce? slow

lufthansa, to the other side of things, is gaining iag.ng well on the underlying data the new york times, saying there might be an au-u.s. travel opening, for u.s. tourists who do have a vaccine. miners also getting today for us specifically on the back of commodity price actions. let me take you to that, live sans up about 1.5%. but looking at copper prices and the macro picture, that's at its highest since 2011. iron ore is also higher, giving you an idea of a risk on move we have. bitcoin itself is higher. the move i'm showing you at the moment is the change from friday. if you want to look at a sunday move, it's a more than 10% increase. looking at u.s. futures, pretty much flat, which shows the risk on tone isn't necessarily extending to the equity market. we also have higher yields. perhaps that's once again starting to weigh, on that risk market specifically. anna: some commodities going higher. iron ore to the upside, oil prices retreat a little on brent. thanks for dani burger. the situation in india spirals out of control. the na

iag's british airways have canceled 8% of winter flights.hey are going to look past the increase in the stake, which is interesting to the stake in bt, up about 1.2%. francine: german power have sourced 700 megawatts per hour for the first time as the country panics over the dependence on the unreliable russian energy supplies. olaf scholz went to canada to try to find alternative sources of energy to end its dependence on russian gas. >> we will work hard to become independent of this gas supply and we are doing a lot of investments to make this happen. we are doing it as fast as possible. the energy infrastructure has been built in germany in a short time. because of the difficulty that germany is facing to make sure that we can move through regulatory hurdles more quickly, it is something we are willing to do, but there needs to be a business case and it needs to make sense for germany. francine: for more, we are joined from berlin by bloomberg's chief in network. how much of this will help with the timeline of how fast some of the energy

iag moving down by over 13%.a genius to work out the links to aviation, lockdowns being extended. hsbc also falling. some of the banking stocks have done well on expectations of cyclical trade and expectations of dividends to be paid out. shale also in focus, oil prices down. about the extent to which it is weighing on their business. ocado one of the bright spots, up by just over 3%. many people getting back into those home delivery trades. more on markets when we return. this is bloomberg. ♪ welcome back to the european market open. 30 minutes into the trading session. if you were hoping to a quiet run-up to the christmas period, no such luck. stocks falling with european equity markets falling quite considerably. the stoxx 600 down by just over 2%. the ftse 100 cushioned from some of the worst of those falls because of the weakness we see in the pound. that relationship, that negative correlation between the two, standing. in terms of the sectors in focus, travel and leisure is the worst-performing sector. we

anna: breaking news on the subject of iag's in the aviation space.reakevenexpecting net cash flow in the fourth quarter. recent bookings has not developed as previously seen. they expect fourth quarter capacity to be more -- no more than 30%. from other this aviation businesses. this is a sector that is in the crosshairs. there was better news on this front out of the u.s.. more and more people returning to the skies. how has their earnings picture been shaping up for you? how is that impacting the market speeds? >> certainly, when we look to the u.s., more companies are raising guidance which is a positive portend. we are seeing earnings beat come in at around 85% which is the highest since the bull market began in 2009. it is quite early days. the key messaging right now is we are likely to see this narrative of this case shaped recovery continue. that is tech, health care sectors that are benefiting from the pandemic likely to outperform whereas these more cyclically exposed consumer sectors like airlines will continue to struggle until we see sig

iag is one of the best performers today. even carnival. they are outperforming.t is allowing people to be more confident in these risky shares is the move in bond markets. take a look at some of the macro movers. people are dipping back into the bond market. aussie bonds seeing 10 year yields have their biggest slide. the central bank doubling down. the u.s. 10 year yield stabilizing around 1.4%. more or less flat. more stability and equity markets. people comfortable with stepping in to buy. anna: dani burger, pretty comprehensive there in terms of the movers. bond market narratives. looks a little quieter but a slight movement to the upside in the u.s. 10 year. coming up, sunshine, sand, and sangria. what are your chances for a holiday in spain? can tourism safely come back? no guarantee that anyone will be let in. we will talk about holidays in spain next. this is bloomberg. ♪ anna: welcome back to the european market open. 30 minutes into monday's trading session and risk assets are big this morning in the london market, up by 1.6%. if we look at the gri, you

the big story -- iag moving to the downside.the turkish finance minister to the downside.. we're seeing exposure there. overall of that, turkey is somewhat contained. let's look at what the turkish markets are doing. they've had dramatic moves today. the stock index falling a percent. -- 8%. two circuit breakers in the first eight minutes of trading, the biggest leap in the tenure on record, the lira continuing to take a plan -- 10 year on record, the lira continuing to take a plunge. the fear is now that he's gone, the preference will be to keeping rates low, denting trade. across the board, we're seeing turkish assets see a lot of red today. anna: a lot of red. thank you. let's stick with what we're hearing out of istanbul. it is monitoring trading activity. we've seen circuit breakers kicking in. istanbul also warning investors to act in line with regulations. we heard from the treasury in turkey, saying they were not stepping back from free market and liberal fx regimes. the market has moved in its own direction. we've seen

we are talking about iag. currently gaining 0.5%. the earnings coming in better than expected. the loss was lower than the estimates. 452 million euros. passenger numbers were better than expected. they are still expecting an operating loss for the end of the year, but they are also focused on this important transatlantic route, which provided about 17% of their revenues. we think that will come back strongly. airbus, deliveries are missing. are they going to meet that full-year goal? currently share prices are down. it is a solid gain for the insurance company announcing a buyback of around $2 billion. the wealth management part of that business doing very well. it reflects the strength of the balance sheet. being rewarded up to .6%. that is the safe play across some of those individual stocks. coming up, share action is a nonprofit that wants to hold a financial system to account when it comes to sustainability. we have a conversation with the ceo next. this is bloomberg. ♪ tom: welcome back to the open. the bond bears backed into a corner. you are looking at banks at the top

iag has a lot of ground to make up.with those covid restrictions being extended in the u.k. anglo american under pressure with a lot of the other mining stocks given we are seeing metals fall. copper fallen to a three-month low. let's look at the macro picture. copper receding this morning. it had a rough day yesterday as well with some of the inflationary bets backing off peter the gas pedal being stepped off of. it is not just a metals, it is also the equity indexes. yesterday, a severe rotation into growth stocks. the russell 2000 have fallen yesterday. futures are higher this morning but it is tech that is set to outperform. one of the first instances so far this year where we are seeing people move back into growth stocks. this this going to be back into that rotation away from cyclicals or is it a little bit of a correction ahead of the fomc meeting? anna: thank you very much. copper prices to the downside, once again under pressure. down .4% on that sector. dani, thank you very much. i should say the balance of m

tom: the owner of british airways gaining almost 2%, iag. despite the fact that you're hearing from the white house in terms of restricting travel. japan blocking the booking of flights for foreigners and japanese residents into that country. in terms of shell, gaining almost 2% on the back of a higher oil price as we lead up to the opec-plus meeting. on the deals front, we have the news of blue prism. it seems like we will be expecting a deal from ss&c. ok, let's get to the bloomberg first word news now, or business flash i should say, with leigh-ann gerrans. >> good morning and thank you. china is said to be banning -- planning to ban companies from going public through foreign stock market through variable interest entities. bloomberg understands beijing wants to close the loophole partly to address concerns about data security. the route has long been used by the country's tech industry to raise capital from overseas investors. now, brazilian digital bank nu holdings has trimmed the valuation of its ipo while also attracting the interest