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

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

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

iag up 4.7%. norwegian isle -- 9%. nine point -- iag is up 4.7%.o you feel the world economy has picked for this year? data points suggested a possible downward trend. >> we definitely saw soft data in particular in europe. we believe this is a soft match. potential in the second quarter to grow substantially stronger than the first. we are still hopeful. if we don't see an escalation of the risk we just mentioned, the underlying impulses are still with regards to momentum in labor markets in the u.s. and europe. but there is a lot of uncertainty. it will play out in the coming months whether we go to a path where we go back to global synchronized good growth in the optimism we had our whether this will turn into something where we will export it and say we are past the p. francine: what is your assessment? it is unclear whether it will have impact on monetary policy or a normalizing of growth. >> we believe there will be diversions of growth in the next six months. there is more scope for potential upside surprise in the u.s. economy. it is an eco

it is, iag. mr. walsh out with comments.e makes it clear, 1400 voluntary redundancies among some of the struggles right now. he is looking out to 2021, and it is a challenge. this is an extraordinary day on technology and on the bond markets and the foreign exchange markets, what you need to know. u.s., lower, the two-year .1093. this is bloomberg. good morning. ♪ tom: good morning, everyone. "bloomberg surveillance." it is an extra ordinary day. daniel ives will join us in the next hour. he has been dead on in the enthusiasm for technology. right now with a broader view, matthew bloxham's with bloomberg intelligence and we talk here about these conference calls. right now i have citigroup out to 450. that is pre-split on apple. and joe feldman down to 4000 this morning on amazon as well. comment important heard was from mr. cook, where he knows what is coming, and he said we are not a zero-some game where we are taking -- zero-s um game. do you buy that technology is additive? it isyou know, i think overall, and i think eve

we are seeing a big impact to travel stocks, iag's one of the worst performers.ot totally given that some of the gains when value came back with hopes we would get more openings with the vaccine. the issue now at stake is the vaccine is a story for later in 2021. in the meantime, we might be getting more lockdowns, more travel restrictions globally then had initially been anticipated by markets in the first quarter. sterling hard-hit, falling by as much as 2%. thanas only fallen by more 2% to other times this year. this is a two sigma move. it definitely is not something we normally see from sterling. the concern here, especially at the time of year we are at, do you really want to be holding on to cable. who knows when we will get this trade deal finally done. in the meantime, the u.k. economy is going to be hard-hit by these new restrictions. yousef: spot on. in the meantime, the u.s. is in the process of formalizing this agreement on the stimulus. is that going to be sufficient to really offer support, maybe even lift sentiment once more details come out? been

guy: luis gallego, the ceo of iag joining us from heathrow as part of the a4e conference today.nk you for your time. tom keene, hopefully that north atlantic will reopen soon. we are missing you here. i think this is an event, the g7, was built for tom keene's presence. tom: i have been thrilled to be there. it's going to be a ho-hum meeting and it won't be ho-hum at all. lisa, your thoughts here on inflation? into ours, we get this inflation number. i am looking at core. we are writing up a trimmed inflation. i should say, which is still much contained. lisa: we haven't mentioned anything about the initial jobless claims coming in at 8:30 a.m.. but people are more interested in jobs than the cpi prints, because as peter hooper was saying, nobody cares. people are looking at more employment because they want to understand when wages come up to understand the stickiness of inflation. lisa: matt, she is dazzling us, 100% collect -- correct. that is probably a bigger deal than inflation. matt: especially wages. yesterday you had luigi on the show and his question was why have we no

ceoana: we spoke with the of british parent iag who is optimistic. >> no doubt it will fly again.gh evaluation. when it comes back into service i think it will be the most inspected aircraft of any flying in the sky. i have no doubt the regulators will give it a green light when they are satisfied the issues have been addressed. viviana: bowing indicated the 737 maxwell fly in september but regulators have -- boeing indicated the 737 max 8 will fly in september. withey epstein charged operating a sex trafficking ring. it is unclear how much money he has in the account. francine: more on deutsche bank as they unveiled a big overhaul on monday. the market is not convinced how they would stick to their targets. people are questioning whether they need to raise capital and concerns about the german economy and they are tying themselves to this economy. let's get back to you. when we look at the concerns deutsche bank has in the fact that investors do not believe they will get through this, what does that tell us about what investors expect of a bank and the impossible situation deutsc

hitcost of the iag could $100 million. good morning and good afternoon. welcome to "bloomberg surveillance." i am francine lacqua here. first to the markets because there is a lot going on. we are covering brexit. it is not only about brexit. there is a lot going on in the wider market. i am looking at oil. the implication of the saudi arabia oil market, because the king will meet the minister for oil and petroleum. we will see what impact that has on their policy going forward. 6.92 for oil. you can see the index unchanged. chiefiller speaks to the executive at the herbert motor show. about brexiteaking with lord adonis soon. said the prime minister plans to defy legislation requiring him to ask eu for brexit delay. that comes after the resignation -- why she couldn't stay on. >> i supported boris johnson and his approach and i was right to do that. the consequences now, one senior .olleagues expelled this made my position untenable. francine: joining us now is andrew adonis. roles in thes labor government. lord adonis, thank you for coming on. we are ba

a vote of confidence, boeing wins a plane order from iag.lsh says he would get on board a max tomorrow. this is bloomberg surveillance. tom keene is in new york. it is fed day. we speak to steve schwarzman and the impact it could have on education. different fed day it is after what we have seen over the last 24 hours. difference thea day makes. viviana: donald trump launching campaign, his speech warned of what would happen if he loses. telling a crowd in florida, democrats would strip americans of their rights. he promised to be tough with china on trade. >> i spoke to president she, a terrific president, a great leader of china. we will see what happens. have a good to deal, a fair deal, or we are not going to have a deal at all. viviana: they were scheduled to meet at the g 20 summit in japan. impose sanctions on turkey. the administration is considering three sanction packages. the idea with the most support is to target turkish defense companies. erdogan is likely to ask trump to back down. apple is considering whether to move up to 30

he is the ceo of iag, the holding group for u.s.big three holding groups that owns the vast majority of europe's airlines. you guys were just talking about what was happening with the dollar. the other thing floating around is what is happening with fuel prices absolutely rocketing higher. brent surging. the spread on top of that, jet fuel also super wide which means jet fuel is super expensive. thanks for stopping by to see us. does higher oil, higher jet fuel mean higher fares? >> feel for as is 25%, but we have about 70% of the fuel. at the end, fares are related to their supply and demand. guy: competition is really important. the american carriers don't hedge. you are hedge. your american carriers, your competitors are not hedged. do you have an advantage right now because of the higher field price on the north atlantic the american competitors? luis: in north atlantic, with american airlines and iberia, at the end, we have a profit pool of revenues between the different airlines. the customer, they can fly in the airline that

today i was looking at iag and left tonsil with the pfizer news and the opening of the u.s. to foreign travelers -- and lufthansa with pfizer news and the opening of the u.s. to foreign travelers. huge gains. the market predicted this. jonathan: when was the last time we did this together. matt: it's been a long time. i usually fill in for you when you are out but now it is for tom. jonathan: equity market up three on the s&p 500, advancing a little bit up 0.06%. the bond market, lease has questions, important questions with what is happening with the 10 year up three basis points. euro-dollar unchanged. crude at 1.55%. wti 82.53. lisa: the bond market always has questions for me. i am watching the chinese communist party beginning there -- karen -- beginning their --. the idea they are having to pass it along and people are feeling it and how do they respond to that? we are going to hear six fed speakers and fed chair jay powell. how will they talk about the data we are getting tomorrow? as well as consumer prices expecting to increase at the fastest pace since 1990. how do

iag also looking to cut operating expenses.urth set of capacity cuts. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm viviana hurtado. this is bloomberg. francine: thank you so much. joining us on the phone is john strickland, jls consulting aviation analyst. always great to speak to you. we spoke a couple of weeks ago, and you are giving your thoughts on how you thought the coronavirus what impact airlines. are we going to see airlines going out of business if this continues for another three weeks? john: there's no doubt that's going to happen, given what your colleague was just explaining capacitieswaths of being cut by airlines around the world. planes on the ground are not generating any revenues and are covering substantial amount of costs. ryanair and iag have substantial piles of cash, but unfortunately are not typical of the sector of a whole. many airlines have little or no cash, as we've seen. we were commenting about

iag is airways owner slashing fourth-quarter capacity, now no longer expecting to break even during thenths. that is as fresh restrictions are keeping would be travelers at home. the carrier plans to operate no more than 30% of its usual schedule. it had hoped to be above 33% -- above 50% normal. us the 41 firm is moving its headquarters from midtown manhattan to west palm beach. it joins a growing trend of companies moving to the sunshine state. income tax.no yousef: apollo global management -- dani burger, what are some of the details of the investigation that apollo has a barked on that has an barked? dani: we got word of this yesterday when apollo filed the case with the sec saying that leon black asked himself for this investigation. they have hired a law firm, and in the company's words, the law firm will confirm what leon black has already said about his relationship with jeffrey epstein, a professional relationship and no ties between apollo the firm and epstein. this was purely a professional relationship between leon black and epstein. this really kicked up starting last week.

the dutch bank iag posted a better-than-expected first-quarter profit.r satan like there'll be more payouts to shareholders. ing is waiting -- the lender pointing out there will be more payouts to shareholders. miami is also exploring investing funds in the world's largest cryptocurrency. according silicon valley investors and technology investors and he thinks adopting bitcoin is a critical part of that plan. that is your latest bloomberg business flash. tom: thanks so much. maybe the leadership in miami ought to join francine lacqua in the british museum and look at some of the challenges of medieval england in currency stability as they try to make the economy go. francine: we could go to roman times as well. tom: you could even go to game of thrones. francine: this is a different chart. edward vander walt knows that if i go to logs, this shows the percent change of bitcoin. all i can tell you is this is a hugely contained and elegant chart. it respects one of the key moving averages. there is a very nice ballet to the mathematics of bitcoin in this l

british airways owner iag is in talks with starlink.ier to consider using the online service. according to the head of innovation, the company has not made a final decision and is weighing options including amazon. semiconductors have been the gift that keeps given for equity traders -- giving for equity traders, quite literally. asml is sharing lego replicas. it's only available to asml employees. they are calling the company to make them more widely available. rochus will set employees back $216 each. that is your brief. scarlet: we are both gawking at that lego set. katie: if it's only available to employees, i thought they would get it for free. maybe i am being greedy. scarlet: it does cost money to make that. coming up next, pricing in a less dovish fed. >> the way the economy is going, you should see a moderation in growth and a moderation and employment and in inflation. the market is very efficiently priced in for a benign policy pack. scarlet: what it means for the bond market. that is next. you are watching "bloomberg surveil

the ceo's of iag, easyjet, and ryanair gathered today in brussels. they argue that money is needed as airlines make the costly transition to cleaner energy. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm lisa mateo. this is bloomberg. ♪ >> we are already a standard deviation away from a black swan event on things like inflation, but also in europe, we have also the major geopolitical shock of the war. we are in a very difficult situation. jonathan: nouriel roubini. and that is just the first quarter. the nasdaq 100 positive about 0.2%. yields on tens down three basis points are get crude down 5.8% to $101.60, as bloomberg reports we could get a monster reserve release from the administration that could be announced later today. happening right now is nato secretary-general jens stoltenberg addressing an audience once again of reporters and saying russia has repeatedly lied about its actions. russia is regrouping for an offensive in the donbass. remember

iag has agreed to buy 747 max jets and concludes a widely watched commitment that was reached three years50 planes have a price of about $60 billion that iga says it is negotiating. 7.8 billion dollar hedge fund melvin financial management, more than a month ago it was in a game shot -- gamestop short squeeze. it never recovered. a comeback showed promise but never -- global news 24 hours a day, on air and bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. ♪ ♪ the lower your drag coefficient, the more efficient you become. such amazingly perfect shapes run throughout the natural world. and can now be found in the automotive one. the world's most aerodynamic production vehicle. the eqs sedan. ♪ changes in the data in the coming weeks, i expect two additional 50 basis point rate hikes in june and july. jonathan: nothing has changed for patrick harker, the philadelphia fed president. live from new york city, equity futures shaping up as follows. small pain ahead, equity futures down more than 1% on the s&p

lundgren pointed out to me but the big five carriers, iag, lufthansa, easyjet have the balance sheetsthe market has marked these stocks down aggressively. it will be fascinating to see how strongly they bounce back. some of them are bouncing back quite strongly today. francine: guy johnson in brussels. don't miss exclusive interviews ash the chief executives flight demand is hit. catch that here on bloomberg tv. let's go back to guy de blonay, jupiter asset management. when you look at the airlines, do you have any of holding in airlines you are cutting off? what is priced in the markets right now? guy: what is priced in? well, after the move yesterday, what is priced in is an intervention from central banks. cuts, we saw rate australia cutting rates. i think we are looking for the fed to cut rates by 50 pips by the end of march. inhink we are also pricing some government announcement on fiscal measures or stimulus. that probably will take a bit longer, so i think we are certainly -- markets are certainly getting some relief on the basis that the g7 and perhaps governments around the

they took an order from iag while the max was grounded. what we see from the airlines in europe is actually airlines like air france, easyjet, some of the bigger airlines there. it really has contracted. romaine: folding into this, the idea of commercial aircraft in china and the idea that it could become a viable competitor. i am curious, in your mind, is there room for another player in this space with regards to the larger aircraft? george: i think the chinese will make room for another player. as we were getting into the pandemic, the chinese were approaching buying almost 300 narrow bodies every year, and that is what boeing and airbus were producing. they were buying a sizable number of those airplanes, so if they decide they are going to buy their airplane, that puts a big dent in boeing and airbus's deliveries for narrow bodies. so i think the chinese will make room. i think the threat is a decade out. they are doing test flights initially in china. they will have to learn how to support an airplane in china, and then if they want

the likes of iag are up about 3% because those international carriers, those on the other side of thetic really have been hurting for quite some time, waiting for the day that they can once again bring european passengers back to the u.s. with no problems. still, that day is not here. maybe it will come in a couple of days. jonathan: let's bring in bloomberg news' u.s. airline reporter. how important is the answer to the question yesterday for these airlines? mary: it is very important for the airlines. domestic travel has come back really strongly, but they desperately need the international component. they are focused on the travel between the u.s. and europe. inbound traffic from 26 european countries and the u.k. has been blocked since march of 2020, so they really want that valuable traffic act. once those bands are lifted, people can start traveling, and that hopefully will lead to the resurgence of international business traffic. jonathan: the business line is the important one. who is this more important for come out of united, delta, american, jetblue? they will be launching

ihv up 3%, -- iag up 3%. up 25% in five trading sessions.erday that this country will reopen things for foreign travelers if there unvaccinated, unlocking a big rally in those badly beaten up airlines. this has been shut now for 18 months? americans have been able to go over to europe, there has not been reciprocation. now we unlock the story, the one part of the cyclical trade once more. tom: you and me in manchester united on october 30, we will be able to take that, no question. on a better economy, dynamics and gdp and particularly the denim -- the dynamics of inflation, the oec in paris, a chief economist joins us now with a transient report on where we are and where we are heading for 2022, laurence boone. wonderful to come up with you again. how transit walk is our inflation -- transitory is our inflation moving forward? laurence: thank you. it is nice to catch up with you again. thanks a lot. it means three things in english if you allow me. the first one is we have a lot of supply bottlenecks due to the fact that the world is not be

that particular part of the market is down about 1% in europe, but you look within it, the likes of iag company of british airways, down about 4% this morning off the back of renewed concerns over the pandemic and extended lockdowns in places like germany. do you see it priced into the equity market -- you see it priced into the equity market, but not on the year. euro weaker, dollar stronger. came into the year was huge enthusiasm for everything but the u.s. dollar. right now, $1.1880, down about 0.4% on the session. peak has some is him on the continent, peak optimism -- peak pessimism on the continent, peak optimism in the u.s. where were we at the start of january? we are just south of 1.19 percent. you would expect that to move a lot lower. i think you have to respect what the market is telling you, that it is struggling to move a whole lot lower, even with the incremental bad news out of europe and the incremental good news out of the united states. i think for that reason, this is what we keep have to asking questions about. why haven't we had a bigger break of the euro than $1.1

iag expects to turn profitable this spring or get bookings are now running at 85% of prepend them asbal news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm rick a group to. this is i'm ritika gupta. -- i'm ritika gupta. this is bloomberg. ♪ jonathan: live from new york city, breaking news from "the financial times" in brussels. the eu preparing to freeze the assets of vladimir putin and his foreign minister sergei lavrov under the sanctions package discussed yesterday evening, and could be pushed through today. this according to three people familiar with the matter. putin and lavrov will not, however, be subject to a ban on traveling under the measures, underlining the eu's willingness to keep simba melodic death to keep -- to keep symbolic diplomatic possibilities open. tom: it now is a conversation that could be two hours long because there is no one with a family more qualified on russia and the fears of mr. putin tha n william browder. he is the cofounder of hermitage capital management, but h

iag, british airways, taking it on the chin big time. airlines on both sides of the atlantic struggling. we get a helping hand for anyone concerned about crude prices. 76.35 on wti. lisa: how much can president biden potentially avoid the release of special petroleum fund because of what is going on with his job honing with china and now the covid wave. jonathan: that's becoming up as well. vice chair clarida. we have hardly talked about vice chair clarida. his name is barely in the mix going into next year. lisa: when he has been speaking -- he will not necessarily be part of the leadership in any way. when he has spoken, he will tow the line. will he change today, especially as you hear growing consensus about the rising threat of inflation? jonathan: waiting for the next fed chair -- it is amazing vice chair clarida has not been talked about. he has been a guiding light can when chairman powell struggled with communication, you are looking through the list of fed speakers, waiting to hear from one man, vice chair clear that -- clarida

the parent of british airways, iag, reported mounting losses, expecting only a gradual recovery in travelthe company is also saying that siberia -- aer lingus will -- also owns aer lingus. it will take until at least 2023 for a rebound. global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries, i'm ritika gupta. this is bloomberg. ♪ >> china has proven over and over again that it is willing to be anticompetitive, coercive, steal our technology, use it against us. so the third thing that you need to know is that we are taking it incredibly seriously and we are going to be as tough as we need to be. jon: it is a different administration, the same message. that was gina raimondo. alongside tom keene, lisa abramowicz, i am jon ferro. euro-dollar positive come a little more than .1, approaching 1.21, 1.2 084. your headline is in the commodity market. i should say you're headed that your headlines are in the commodity market right now. copper taking out a decade-long record high. we have had back to back weekly g

iag's ceo will walk -- will leave.adium, record-breaking rally will not stop for a while the metal used in catalytic converters rising above $2800 an ounce per this year it is already up 40% per the reason, expectations in environmental standards will get tougher. that means cars will need more palladium and there is already a shortage. that is the bloomberg business flash. tom: i just want to remind everyone, dollar strength, as francine mentioning, in weakness really front and center. francine? weakness, focusing on brent. coming up, we hear from the telekom ceo. ♪ ♪ we are continuing to ship as per our schedule and seeing strong demand. >> i think we will have to take additional provisions. >> demand is holding up. prices are holding up. >> we are waiting for jobs to come in. sonext week in china again, the usa for the short-term. >> we are highlighting more generally the importance of diversifying the supply chain. >> asia is an important market, growing market. we are not abandoning it. the impact ofhing the coron

iag said third-quarter profits were assisted.oved because of several european arrivals being driven into insolvency. that is your bloomberg business flash. guy: taylor, thank you very much. madrid expected to pass .egislation to seize control meanwhile with its options running out, catalan president is due to adjust the regional parliament. i have more -- i have a my bloomberg, the catalan parliament is to be asked to be vote on independent declaration. let's get the latest. maria tadeo joins us. the catalan parliament asked to vote on the independence declaration. in expectation on how it will vote? -- any expectation on how it will vote? maria: what we are hearing is the document has linked and we understand the document will be put forward to a vote. we want to trigger a negotiation with madrid in terms of how we move forward. that if thiss hypothetical catalan republic were to take place, the debt would have to be negotiated. immediately after, they are going to get in touch with european authorities to say we want to stay in

iag have a follow this morning. airline's ceo, alex cruz, apologized for the disruption. >> i know this has been a horrible time for customers. some of you have missed holidays. some of you have been stranded on an aircraft and some of you have been separated from your bags. many of you have been waiting for information. on behalf of everyone at british airways, i want to apologize for the fact that you have had to go through these trying experiences. campbell --that it benedict campbell joins us from berlin. give us the latest. >> hi, from berlin. the latest is, the system appears to be more or less back to normal. a couple cancellations here and there, maybe about one dozen, but that is nothing compared to what we saw over the weekend, 300,000 passengers stranded. you all saw the pictures of heathrow airport, which looked terrible. we all saw the ceo speaking. he is that it was a horrible week and for everyone and i'm sure he is including himself in that. he is looking at a couple of horrible days, if not weeks, g

meanwhile, the profits are flying high at iag.hey are in talks to add more wi-fi with the surging demand. meanwhile the chief executive says -- will not affect its business. they are all taking a hit from the concern they are all leading the union. >> meanwhile, the measure of confidence has fallen to its lowest level in 362 years. that's business. francine? francine: caroline, thank you so much. now the bank of england governor warned about getting broiled -- call he calls ate zero sum game. >> when zero rates are implemented in ways that insulate retail customers shutting off channels that mainly -- allowing wholesale adjustments, it can affect the exchange rate. >> this may be a way to boost activity. but the transfer of demand weakness elsewhere is also a zero sum game. >> let's bring in the founder of needle knows advisors. you are concerned about their rates at the bottom. but policymakers didn't have a choice to do more because root forms -- >> well, there has to be an end to the potent cri of the central bank's reform. >>

wholeyou look at iag as a we are short about $2 billion so we have 2 billion more dollar costs then revenues is driven largely by the price of oil. we are saying the price increase in recent weeks and months so our fuel bill is going to be higher but it is also going to be higher because the pound and the euro have both weakened against the u.s. dollar. that no doubt will have an impact. poundif we have seen the move from $1.46 to $1.33, is that the hit you expect to take? >> it is unknown where the pound will stabilize against the dollar but clearly on friday we believed it was going to take a significant hit. the pound closed stronger on friday than we expected but weakened again yesterday. going view, the pound is to be structurally weaker against the euro and the dollar and that clearly has an impact on our business. ryan: and it has an impact on consumers and what they do so you have talked about weakening and demand. how do you see the demand picture for the rest of the year? >> the area we witnessed the most softness was u.k. corporate's and that is down to the uncertainty around the

iag. scarlet fu just laughed. there was jpmorgan's earnings. >> it is supposed to come out at 7:00 a.m. and there like clockwork every quarter. there always release it at 7:00 a.m. there he came out at 4:00 in the morning. apparently, it was an early release. >> did they put it out or did someone inadvertently release it? our finance team suggest jpmorgan put it out a little too early. >> and the headline there was a $1 billion legal expenses. and missed consensus. how much fun is banking right now? >> this doesn't stop, does it? it is entertaining. you're watching the movie too fast. this is a slow economy, a very slow recovery. everything is falling in place in terms of an clan. you have the loan cycle picking up, broadening as it should. the first thing i look at it of the morgan release is loan growth, 7%. that is not shabby. above nominal gdp. the issue is qqq. we are ending and everyone else is continuing. this is awkward. isthe twitter question brilliant. pros like you are looking at the bond market. what d

i think the iag ceo is saying they need government support.u assess the prospects for this sector? julian: i would agree that climate change is a headwind that is not going away, and putting the coronavirus to one side. --hink people's view travel about travel will change, and people will use trains more. i think that that is going to be a grand phenomenon as well. throughout my career i have been very dubious about owning airlines for stock. with all that has happened in the last few weeks, it confirms the high operating leverage and the unpredictability of external events on the sector. i think that is going to continue. anna: the vulnerabilities are there. how has the sector been hit, charlotte, so far? we have seen at the forefront it fell off as a sector, on days where the market is nervous about coronavirus, we have seen it fall. are there any particular airlines to keep an eye on? charlotte: already in the past 24 hours we have had united saying that they are cutting domestically and internationally. they have approved a hiring freeze.

iag, the parent company of british airways, their stock is up 2% this morning.so battling higher fuel and oil prices, but are able to show themselves somewhat. earnings came in with expectations. their key measure, operating profit, was slightly higher than estimates. the ceo talking on the call saying they had to adjust their growth. route networks plan to respond to fuel. francine: thank you so much. let's focus on oil. shares have dipped slightly after this morning's third-quarter earnings. the french oil giant also raised andproduction prices pledged to keep its spending under control. brent crude flattening out rtelnd $76 of the ca sites earnings. i want to bring everyone up-to-date with the very latest headlines from president erdogan of turkey, saying the saudi consulate will come to turkey on saturday. we had a veiled threat from the u.s., maybe imposing sanctions on saudi, the biggest oil producer in the world, they pushed back saying, we may retaliate. they're looking at the economy. >> they seem contradictory, but the kind of fit together in the sense

airbus delivery delays pushing iag delays -- to buy from boeing.t was a factor in his decision to place it before billion dollar order for the grounded 737 max. he said he does not want to be solely dependent on one company for his entire narrowbody fleet. francine: let's get back to our top story. fed chair jay powell has been making the case for easing monetary policy to slow global growth. the biggest risk to the economy right now -- >> i think the markets are factoring in a continuation of supportive monetary policy, potentially some help for fiscal policy and a solid outcome from some of the uncertainties around trade talks and brexit. there is an expectation that things will work out. if that were to change, that would be a big reaction. >> there are such a big reaction for monetary policy to drive growth. monetary policy suddenly cannot be an engine of growth. >> people have been saying that for some time and get it continues to be accommodating. inflation does not seem to be a major threat at the moment. anticipate the accommodating stance

the paris show, the big surprise for boeing was that it managed to secure a substantial order from iagrprising, as this continues to go along, that airbus tries to reverse these orders, particularly the ones further down the pipeline and therefore there is more availability to make that switch. anna: the extent to which airbus is able to capitalize on the woes of bowing -- boeing could -- capacityes constraints for airbus. guy: airbus is competing strongly in a number of different categories and at the moment, boeing faces difficult choices. it has to get the 737 back in the air and make a decision on replacements everyone is talking about. airbus is selling strongly the a320 one, the lot -- long-range version that overlaps with the 757. dave calhoun will have to make that decision. tom: guy johnson, greatly appreciated. mr. johnson in london. michael holland watching all of this. what do you do when a ceo exits? i have always enjoyed losing money when a ceo exits. is there more turmoil than when the public thinks -- then the public thinks? michael: especially in a place like boeing. t

and finally, iag, down more than 7%.d leisure is doing better, but the airlines are still very fragile. of course due to the outbreak of coronavirus, but also oil prices rising higher. they will get hit from the higher crude prices, francine. francine: annmarie hordern with your main stock movers. let's focus on the economic response from the coronavirus outbreak trade pressure is piling up on the fed and other central banks to take action. the fed chair, jay powell, says he is prepared to cut rates if necessary. is expectedoint cut this month. -- journey is now is our executive editor for economics. and from natwest markets, jim mccormick. thanks for sticking around. welcome to surveillance. when you look at what banks are doing, are they now counting -- you know, saying that recession is very likely? >> entering into this period, there were signs that the global economy was stabilizing. policy around the world was already very loose. there are some fundamental strengths, looking at labor market prices come but those re

next, stocks are on the move, iag, air let operator which listed its long-term profit goals and the stock is up 3.3%. this is bloomberg. ♪ ♪ anna: welcome back, this is "bloomberg markets: the european open." let us get the top stoke stories desktop stock stories. >> i know you are talking to the earnest of bank ceo earlier today, who was pretty positive on his outlook. little markets look a bit different today. when it comes to the companies full-year revenue, number of intelligence analysts say that there were high expectations coming into these earnings, which could be one of the reasons we are seeing shares climbed. some positive movement, but they did release a headline heading into the day saying that there are upgrading one of their key target metrics. so investors maybe expecting more positive headlines. is one of the big gainers, they make armored cars for banks and their stock is up almost 4%. most of their earnings come from the u.s., as banks are starting to outsource more for them. matt, anna? thanks very much for that. we are not just four days away from the midterms in the

iag down a touch this morning.aging director and chief investment strategist at blackrock investment institute. bloomberg "surveillance" continues. two more hours to come. great guests coming up. we will talk about mario draghi, the bank of england and talk about what is happening in washington. this is bloomberg. ♪ tom: after the tuesday afternoon massacre, call it the wednesday putin photo opportunity. invited, american press not. could the deputy attorney general re-sign? governor carney has an inflation problem. election,and the snap good morning, everyone. i'm tom in london. guy johnson is in for francine lacqua. the bank of england, is it humdrum? as a memberecides of the monetary policy committee -- tom: he's american? guy: we let them in. we are thinking about the immigration policy. tom: we saw sterling move a little bit. guy: a little bit. let's get it bloomberg first word news update. white house is defending the decision to fire fbi director james comey. he committed said atrocities during last year's i

jeopardy last week when the country announced an agency probe into its accounts. , isish airways owner, iag bid for a u.k.-based airline according to the sunday telegraph. pit the airline against virgin atlantic which confirmed that it is also considering a bid. the next step in an ongoing rivalry between the two airline owners. at 1mdb meetings was erased from the records. the added happened before the report was presented to a parliamentary committee in 2016. the malaysian anticorruption commission says it has started an investigation into the matter. and that is your bloomberg business flash. francine? francine: thank you so much, taylor. guest,get to our next chief executive of societe generale, the largest bank in france, frederic oudea a. thank you for joining us. we start with climate change and climate finance this private financing. do you worry that geopolitics , whether itconcerns could be traded or lower revenues and market activity, whether that will affect climate change and climate finance? eric: francine, good morning. i am delighted to be here. i am not sure i understood yo

shares of the parent company iag fell by the most in seven months after the airline revealed that hackerswith credit card data from 380,000 transactions. the cyber break-in lasted for more than two weeks. that is your bloomberg business flash. francine: thank you so much, taylor. cellini has adopted a softer tone this week. enricog us now is a who served as prime minister -- .eputy prime minister of italy as always, a great honor to speak to you. you were in charge of italy and a pretty difficult time. does this time feel different? investors are worried, should they be more worried or less? enrico: -- little box is there and i think mario draghi showed that it is effective. that is the first big answer. it is true that there is another difference of five or 10 years ago. the difference is that there is less support to the european project. but thethe toolbox, european institutions have to manage very carefully this toolbox. it is a mixed feeling. thecine: deeply markets, spread that people talk about between an italian 10 year yields and german bonds will keep his government in check fro

saying iage, you are can get better returns somewhere else by buying things in the developing world.estically. tom: we're going to show this in both hours. a lot of weeding -- reading over the weekend on this. here's the great robert samuelson. why should we worry about escalating debt? the answer in a word, prudence. we don't know how much federal debt is too much. once investors and speculators and erik nielsen lose confidence, the consequences can be devastating. the prudent thing to do is never get close to the line. we aren't being prudent. are we anywhere near a quadratic move where we get yields back on a real basis to where they were in the jfk and lbj 1960's? erik: i think that is a long way away. the direction is coming. they are still very low. for me, it is a question of normalization. until that comes, this irresponsibility, i think you are on your way. it is still a long way out. tom: erik nielsen with us. this is a theme we're going to touch upon. it really brings me back to the idea of deficit, something paul krugman talked about, when there was weak gdp, they perhaps

that is iag. they had an epic meltdown over a busy holiday. outrage of an industry infamous for its cost-cutting and customer service and whether that leaves management and a vulnerable position. ofare full-service reviews flights at heathrow and gatwick and bloomberg surveillance continues in the next hour. tom keene joins me out of new york. this is bloomberg. ♪ francine: the transatlantic relations falter. is the future of trade to the east? the st. louis fed president says the u.s. administration needs to make good on the promises that have driven stock markets to record highs. narrowing,lls theresa may and the conservative campaign against complacency. is the predicted landslide victory no longer in the cards? this is "bloomberg surveillance ." tom keene is in new york. happy tuesday. both of us were off on monday. draghi give a very interesting speech. mr. trump is back at the white house. tom: i thought the news flow out of europe was remarkable. we will talk about the u.k. election one week from thursday, but everybody is back in washi

you say you have other suitors beyond iag. who exactly? --it someone like sponsor lufthansa?od morning. actually i cannot tell who they are, but the only thing that i can say is that they are seen as people -- is that they are very serious people in very serious in that part of the industry. they are keeping a lot of interest. francine: i understand. i understand for reasons that you cannot tell us. would there be investors outside of europe? would there be an -- investors interested in your company that are not airlines? >> so far it is airline groups. i cannot tell. [indiscernible] i say that we have been [indiscernible] see a totally different norwegian air. francine: i understand you are very limited when you can tell us. can you tell us if you would hope for white night to step up? or would you be interested in pursuing some kind of selloff? >> no. if the price is right, everything is for sale. that the board will [indiscernible] francine: ok. the 140me a sense about aircraft that norwegian is in the process of selling. what exactly are they? what will you sell? >> we ar