the company says it received two separate proposals from iag. the proposals were reviewed and rejected as they undervalued the company. the board remains fully committed to generating a strategy to the benefit of shareholders the other factor was the statement from the qataris recently around iag. they said they would support moves by the company towards norwegian air. the question is what happens from here and whether iag launches a better proposal the stock price is down heavily, down 8.8%. >>> coming up, it's a boardroom showdown for elliott and vivendi as they go head to head over hell telecom italia (barry murrey) when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour. evaluating patients remotely is where i think we have a potential to make a difference. (barry murrey) we would save a lot of lives if we could bring the doctor to the patient. verizon is racing to build the first and most powerful 5g network that will enable things like precis

a quiet day for earnings iag is boosting that index the dax is up almost .75%.ake a look at the ftse mib. up .75%. also taking a look at the ibex up over .50% bbva moves higher as the takeover saga continues moving the spanish index up .50%. take a look at the sectors we mentioned iag travel and leisure getting a boost. you see we are seeing utilities as the leader up over 1.5% right now. oil and gas is getting a boost oil prices are higher on middle east tensions as well as stronger than expected chinese data you see over here with autos which are down .25%. it is still a laggard today. it is weighed down by mercedes-benz. we see mercedes-benz shares continue to fall the ceo saying the fully electric transition will take longer than expected the previous target was 2030 autos is the laggard this morning. we moving on to u.s. futures is a mostly positive day in the united states. the dow would open up 100 points higher let's stick with the u.s the weekly jobless claims with 2 231,000 americans filing for unemployment benefits. continuing claims increased by 1.78

turbulence for travel industry air france klm and iag does not expect passenger demand to recover until 2023 hotel giants see room revenue plunge 80% >> the central bank said they only answer to the court not the government the call to justify its bond purchase program >>> significant loss of output has become inevitable. that is the message from the governor andrew bailee forecasting a 14% drop in gdp. sterling rising as the bank of england predicts a sharp recovery in 2021 >> caller: expect a recovery much more than the pull back from the financial crisis. >>> after the british telco cut its dividend looking to shake up its sector >>> a warm welcome to "street signs. let's get to our top data point, chinese exports jumped by 3.5% in april as reopened factories in the country moved to fulfill back log of orders. with a 2% fall in the month. the biggest decline since 2016 the trade surplus grew to $45.3 billion. far above expectations how meaningful is this jump in exports? is it reflective of rebust gains or concentrated in particular sectors? >> even after that beat? export numbers in

. >> iag shares are slumping after posting a 6% rise in second quarter profit shares are off almost 3.9% the owner of british airways backed its full-year guidance and said they expect to deliver a rise in 2018 operating profit given current fuel prices and exchange rates the ceo says the group is not in active takeover discussions with norwegian airlines, but continues to look at the carrier. >>> singapore airlines has been voted the world's best airline you can head to cnbc.com to find out more about its success and how it soared to the top spot. i experienced them quite a few times. had the pleasure >> lucky you >>> mediabanca shares are jumping after elliott has declined to comment on whether they have a stake in the bank.

saying the company, quote, does not have an absolute right to exist he warned that the parent company iag is burning 178 million pounds of cash researches a week. they plan to cut its work force despite the uk government furl owe scheme reacting well this morning up 12%. >>> shares in lufthansa up this morning despite the airline having been relevant gated from germany's blue chip dax index for the first time ever compounding the particularly turbulent first half of the year the exit comes after the coronavirus outbreak prompted a near total stop to global air travel, prompting shares to drop and forcing berlin to hand a 9 billion bailout. looking at the spot in the dax will be taken over making it the second group to enter the index. some housing could pile the pressure on rental and property prices in germany. >>> let's get out to annette you've been all over this lufthansa story. no surprise the stock has fallen out of the dax what do you think of the significant of the change? we have another real estate company entering the blue chip sector just as the airline falls out. >> exactly i

time iag lowers profit warning. the suggest operating will be 215 million euros lower, this follows the walk outs that led to canceling 4,000 flights the group warns that any further action will hurt things more and have an adverse effect on its results. pearson has also warned profits will be at the bottom end of the range. the british education business warned of lower. and dutch prosecutors suspect the bank delayed reporting or failed to report suspicious transaction and clients and alleged links to terrorism the bank said it will cooperate fully with that investigation. >>> coming up, a shock resignation from the ecb's board. we'll discuss whether that pushed the german representative touith j qt atob beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to

what should investors make from the announcement from iag this morning?> reporter: good morning, silvia. look, when you compare to some of the other airlines that we've been speaking to, we have been speaking to wiz az air the othe day. one note for sure is there is a stark difference with the performance of the flag carrier, iag with british airways and iberian fading within that portfolio amongst others. what is interesting is the transformation program seems to be putting out sufficient growth for the company to maintain the strong economic picture for now at least. one thing is they expect demand to improve. let's remember that figure of 1.24 billion actually is a slight drawdown from the 1.25 billion that we have previously seen. the interesting part to that is it still beat out estimates from the market. you saw even the margin, the operating margin of one-time expenses drop from 16.3%. that is within the medium term of the objectives of the company with 12% and 15%. that gives you the sense that the transformation process of 7,000 employees in the

despite the impact >> iag luke to raise 3 billion euros and klm unveils an operating loss sending both shares into the red. six years of growth wiped out in spain as gdp drops in the second quarter but the french economy shrinks less than expected down 15.8%. happy friday welcome to "street signs." we've got a lot of earnings to get to let's talk gdp first we've heard from france and spain. now numbers from italy preliminary q 2 gdp slank quarter on quarter less expected a value. they've advised their q 1 estimate of 5.4% contraction quarter on quarter and 5.4% year on year. slightly worse than anticipated. q 1 marginally worse but q 2 better than expecting. an unprecedented slump for italy but the takeaway better than analysts had feared. not quite as grim as the market had been bracing for looking at the euro gaining ground currently trades around 118.77 we have the france and spain numbers. spain's economy shrunk 18.5% lockdowns and travel restrictions weighed on the tourism industry the fall also raised six years of growth. the french economy slank 15.8 as strict lockdown measures

iag shares see red after a data breach compromises data belonging to 380,000 british airways customers. the airline says it is investigating the theft of payment details. >>> european stocks avoid the losses seen in asia where equities hit a 14-month low. >>> and president trump uses a campaign rally in montana to double down on his accusation that the author of the "new york times" op-ed has committed treason. >> for the sake of our national security, the "new york times" should publish his name at once. i think their reporters should go and investigate who it is >>> plus here on the shores of lame cuomo, talk is dominated by the upcoming contention italian budget but the former prime minister tells cnbc he believes that rome is being judged too harshly. >> we were able to solve the problems without european money. the big problem is that the consequence was raise of unemployment, budgets, so now today we are paying the consequences of this period. >>> good morning british airways apologized for what the ceo says it its worst data breach in 20 years. he described the hack on 380,000 s

will take a one-off 1$1.5 billion hit >>> lufthansa shares fall after the german carrier loses out to iag in its bid to buy nikki. >>> and south korea offers talks with the north a day after the north korean leader, kim jong-un says he is open to dialogue with seoul, despite telling the u.s. that the nuclear button is always on his desk >>> good morning, everyone it is the first trading day of the year i want to alert your attention we have the final manufacturing pmi numbers for the eurozone they came out at 60.6, in line with the flash this is the strongest pace of expansion in the manufacturing sector since the series began in june 199 7 that's two standard deviations above the long run average extremely strong numbers out of europe bringing in our first guest, i have derek halpenny on the phone with us. it appears as though europe is off to a great start, in line with the momentum we saw in december i also want to point out that euro currency is up through 1.20, and it appears the currency has lagged this morning. what have you pencilled in for the currency from here >> we think that

. >>> and turbulence for iag after beating forecasts. >>> welcome to the show. it's friday. these are live pictures from madrid of the senate session meeting to debate and vote on the proposals to implement article 155. let's look at the stoxx 600, we're higher to the tune of half of a percent we're very much driven higher by earnings we had well-received earnings from the likes of ubs and rbs. we'll get to that. and we're basking in the glow of the ecb, dovish taper announcement that we saw yesterday. european markets one by one look like this the ftse 100 up by 0.4% the xetra dax moving higher, 0.7% the cac 40 putting in a respectable gain of two-thirds of a percent as i said, it is all about earnings in today's biggest third quarter earnings movers. volkswagen beating expectations as 2017 revenues rose more than 4% the german carmaker edged it's market outlook higher. rbs reported a strong increase in operating profit as it keeps costs under control. up 1.8%. media bank net profit jumping 11% boosted by a stake in motor way group. total reporting a 29% increase in third q

. >>> shares in iag take off, hitting the highest level in more than a year, as the owner of the british airways enjoys a record passenger revenue performance in what is normally its weakest quarter. >>> the slumping crude price takes a toll on oil stocks, which underperform the european market as investors worry an extended output agreement won't address the supply glut. >>> less than 48 hours to go until the polls open for the final round of the french presidential election. as emanuel macron extends his lead over marine le pen. >>> good morning. it is friday, but not just any friday. it's jobs friday in the u.s. more importantly here in europe, it is the last trading day and the last friday before the second round of presidential elections in france. that's all happening on sunday. let's look at the stoxx 600 and how it's doing this morning. it's off slightly to the tune of 0.3%. we're seeing a bit of a pull back as we see that drop in oil price really weighing on the energy sector. keep in mind these european markets are close to 20-month highs, and close to nine-year highs for the f

iag trading about 1.8% higher this morning >>> europe's largest asset manager, amundi reported higher profits for the period up 5% from a year ago. also in the financial space, rbs in focus after warning of a more uncertain economic outlook my colleague steve over at the desk, willem and steve picking it up now. >> steve sedgwick joins me for more on this british bank. is it all about brexit uncertainty? >> i think your skepticism is unfounded. this bank is doing okay. you and i still own 63% of it, which is not great news. the british government would dearly love to get rid of it like they did with lloyds. the path to recovery have been torturous. it's been smoother for lloyds. when we look at numbers, i found four or five things that make me think, i'm not so sure about this story one, it's a miss it's a numbers miss. they were expecting 507 pounds, they came in at 448 pounds impairments rising so many times we talk to banks all over the world and say how are you looking in on litigation how do we look at impairments? we want to see that go as low as possible this is moving the wron

report in a spanish news website that iag had to deny. the xetra dax is in negative territory as is the cac and the ftse mib you can see why we're seeing that going on. the real estate sector is 0.6% higher telecom, 0.6% higher miners doing relatively well on the back of some of the prices we've seen recently. basic resources, industrials both into negative territory let's see how the asian markets closed the end of today. the hang seng into negative territory. the shanghai up 0.15%. the kospi is slightly higher at the close there. >>> chinese authorities have threatened to stop buying american crops if the u.s. doesn't change its stance on trade talks. this comes after the chinese commerce ministry urged the u.s. to cancel extra tariffs. >> reporter: a chinese state media blog says china won't buy more american crops if the u.s. flip-flops on the trade talks. the blog is believed to have insights into china's negotiations strategy posted a commentary today saying if the u.s. flip-flops in the negotiations the promises to buy american agr

guidance warning in their latest earnings release the other airlines are holding up fairly okay ia iag up 0.7%. earlier richard champion said strong travel stocks are continuing to perform well >> you have to differentiate between the strong and the weak. the weak suffered, but stocks like ryanair and easyjet, though they weakened over the year, operationally they're performing strongly easyjet was at all-time highs in terms of passenger load factor i think the strong continue to benefit, particularly in the budget space where they're not burdened by old planes, expensive maintenance costs and the like they can load their networks appropriately. >> we'll have more on the travel and leisure industry with john strickland at 10:40 cet. in about a half hour's time. stay with us for that. let's check in on the markets. overnight a bit of a rebound in asian stocks, mostly led by the nikk nikkei this after a stronger session in u.s. equities. we saw a good recovery in tech stocks nasdaq up 2% that's not so much the case for europe we're seeing a bit of weakness again, the story in europe is o

attributing the move to high valuations in the payments industry also down 5.4% the airlines industry, iag has propertied a cut to its property forecast the british airways owner sees eps growth at 10% a year down from 12% last week, he expected global macroeconomic softness to continue while the company suffered from strikes which also hit the profit out looks iag trading but it has been a good run last three months up 20% also coming up, we'll cross live to brussels where eu finance ministers are looking to meet. more on that in a few moments. stay with us phone company. (woman) but to businesses, we're a reliable partner. we keep companies ready for what's next. (man) we weave security into their business. virtualize their operations. (woman) and build ai customer experiences. we also keep them ready for the next big opportunity. like 5g. almost all the fortune 500 partner with us. (woman) when it comes to digital transformation... verizon keeps business ready. ♪ rowithout the commission fees and account minimums. so, you can start investing today, wherever you are even hanging with you

travel and leisur serch stocks as shares of iag plunge over the impact of coronavirus. a german town is placed under quarantine as the virus continues to spread further into europ europe the biggest buyout in europe since 2007 >>> you can see entirely red as this selloff continues from the u.s. to asia and europe this morning. let's look at the individual markets to see the losses. you can see the ftse 100 down. 4.25 down in germany the cac down 3.8%. italy more than 3% lower let's look at individual sectors to see travel and leisure down almost 5% basic resources. places like china are selling off. technology stocks are down more than 4.5%. in the u.s., we saw extraordinary circumstances. closing 4.4% 4.6 for the nasdaq these were extraordinary times one of the fastest in history. if we look at the volatility across the markets you are seeing the vix five points higher. coming from wednesday, rising through that period. if we look ahead through that day's trading. you can see all three of mothos major markets. the dow jones currently with an expected open down more tha

iag share hoelders have voted i favor of issuing $2.75 billion of new shares. >>> ryanair has sold theirst euro bonds in years as debt markets start to reopen to airlines placing billions in orders relative to the relatively strong financial position having raised an additional $4 billion just last week >>> airbus remains ahead of boeing supplied 39 jets from last month, down from 49 in july. boeing received 13 orders. a quarter of airbus jets went to low cost carriers as budget carriers prove more resilient. >>> senate republicans will present a small version of the stimulus package saying the bill would be targeted. democrats in congress dismiss the proposal as emaciated saying it contains, quote, poisoned pills they would never support and does not include provagss for airlines or airports they had pushed for a six-month suspension of the payroll package due to expire this month which could lead to mass job losses to discuss all things airlines, let's bring in director general at iata. thank you for being with us this morning. a broad question for you how would you describe the stat

iag nearly 20% easy jet also bouncing uk stocks getting more of a bid to make up for the closure thetravel story front and center in and of itself. >> uk prime minister has backed its closest advisor over accusations he flouted lockdown rules by driving across the country. he said his top aid after driving 250 miles across the country to seek child care several conservative lawmakers have called on cummings to quit. he resisted calls to issue an apology for his actions. >> i don't regret what i did reasonable people may well disagree about how i thought about what to do in the circumstances but i think what i did was actually reasonable in these circumstances. in terms of the rules, i think the rules made clear if you are dealing with small children, that can be exceptional circumstances. the situation i was in was exceptional. the way i dealt with it was the least risk to everybody concerned if my wife and i had both been unable to look after our four-year-old. >> the uk will reopen thousands of hyde street retailers restricting car show rooms and all other nonessential shops can op

. >>> iag full-year revenue adjusted at 25.9 billion euro.he company said capacity grew 29% of the year. shares of the company are up by more than 1% this morning. let's stay in the sector with air france klm with full-year revenue records, but reported a loss in the final three months of the year amid surging costs and supply chain disruption. let's get to rachel garash with more. ra rachel, if you look at the stocks and the performance, what do you make of the overall sector? >> thank you for having me today. we think the results were robust overall in 2023. i think about where the airlines were a couple of years ago and had been through a really difficult time. results were in line with the expectations. we have a triple minus investment grade. klm is one notch lower at ee plus outlook. as you said, record revenues. i think that is a result of volumes as we expected to recover from the pandemic. i think now we're looking at volumes around pre-pandemic levels. people are flying again. leisure travel is leading the way and then business trav

. >> and british airways owner iag launches a ■k71 billion buyback after a better than expected 27% jump>> in. >> operating profit. in. today's top story, president trump has confirmed tariffs against mexico and canada will go into force as planned on march. >> 4th. >> while also hitting china with an unexpected additional 10% levy. well. >> that was. >> enough to really rock markets. we saw a major dramatic sell off stateside yesterday, and that negativity is spilling into europe now. this morning you can see red across the board. the xetra dax down 6/10 of a percent. the cac40 over in france also down by about half a percent. the ftse mid. >> and the ftse 100. >> also trading in the red. >> and this follows a down. >> session yesterday which saw about a half a percent pullback for the main stoxx. >> 600 benchmark. >> and heavy selling in asia overnight. so it's. >> turned into somewhat. >> of a global story. let's take a look at the autos in particular. yesterday we saw very heavy selling in the auto space. and now this morning the selling continues. renault down about 1.4%. you got bm

we have iag down 2%.l back across the travel stocks >>> we have fresh data from china overnight. chinese factory growth stalled in march as weaker demand weighed on producers pmi fell to 50 from the expansion from the previous month. sam filed this report. >> reporter: china's factory activity is losing steam manufacturing growth slowed last month. march pmi at 50 which is on the line which separates from contraction and below the 51.7 which highlights the pickup was short lived. we have the smaller and private firms in china, but it was consistent data which also showed factory activity growth slowing. the data highlighting how manufacturing is struggling to keep up with the pace of the reopening services sector which has been helped by recovery in consumption amid the government infrastructure push. the uneven recovery is put down to weakness in the property sector also slowing global demand which has been weighing on chinese exports. the survey out today captures a larger share of the exporters and eco

we saw a steep fall of 20% in iag, for instance, although that has clawed back to an extent but still down oil and gas, an incredible journey this month for the e sectors, talking about high levels of oil pricing that has triggered action from the u.s. and other nations to try to bring the price lower p. we have a huge story around what demand will look like for the rest of the year and next year and that has knocked the prices. this has been one of the standup rotation stories of late concerns investors may not be well positioned seeing a faster liftoff into interest rates next year i did ask a guest before whether that silences the hawks and damages the faster exit story, and he did agree we have huge question marks around that banks as a result falling steeply at the top end you can see it is health care stocks investors have back in focus u.s. futures have been falling sharply all morning. a tricky session i think a lot of traders hoped to be with family and friends this year. and we have only half a session to play with so liquidity is going to be thin and traders will be dragged

iag is moving that sector higher. iag shares moving higher a day ahead of earnings.etting a boost ahead of the big apple event later today. ubisoft is moving higher on the analyst upgrade. overall, a positive day. i want to highlight the retail sector. we get eurozone retail sectors coming up at 11:00 cet. >>> bp posted a bottom line miss with the first quarter with the earnings of $2.7 billion. that was down 40% on the year. the oil jogiant said it was dueo the outage of the key u.s. ref refinery. shares are down right now. >>> dhl with a 20% drop in earnings with the first quarter of 1.3 billion euro. the group confirmed its full-year forecast. the ceo told cnbc the company is grappling with struggling demand. >> we continue to see a bit of the economic cycle unfolding. we have an unusually long trough in global trade volumes. this has been going on for a while. sluggish global trade. the geographical pattern is shifting in asia with the ocean freight. european trade is weak and that is obviously a very important market for us. that is across most of europe with a

you saw it a bit at iag, and certainly in some of the low-cost carriers as well, and whiz was quick toct in the downturn, but they turn when it comes to the cost savings, when you look in france and the netherlands, but actually over time they have proven to be very poor at staving off inflation. it's hard to fix the fixed costs, and that's one of the biggest difficulties, fixed costs entities by and large. you know, these are things like fuel, for example. you can't really argue to be fully variabled, because otherwise you are not flying >> mark, thank you for weighing in this morning. they found holdings in bp, facebook, marriott, saying it invested in companies well positioned to lead economies they denied a report it was seeking a $10 billion margin loan backed by its stake in softbank. >>> warren buffett has taken a 2.9% in the lender in the cite financial crisis but sold 10 million shares berkshire hathaway holds a 0.6% stake in the bank. >>> coming on "street signs," while while some unicorns have dropped into the valley of the coronavirus, some can still fly on i love these fri

. >>> and norwegian air opened higher following reporting that iag will offer 1.52 billion euros for the airline. shares getting a boost up there. spanish media reported that after two unsuccessful attempts, iag has drawn up a proposal to pay a premium of almost a third of its rival's share price a look now at dialog which will count on apple as a major customer in the next few years the company's ceo said that in an interview that apple commissioned other chip designs which will be delivered in 2019 despite speculation that the iphonemaker is working on its own chip production. >>> coming up on the show, tesla shares dropped in after hours trade after a u.s. magazine chose not to recommend the carmaker's model 3 sedan more details after the break >>> welcome to "street signs." i'm nancy hungerford these are your headlines european equities trade higher with gains driven by the aut sector after reports suggest china could cut car import duties to 15%. >>> the right call french telecon stocks rally on a report that the head of the regulator says he is open to sector consolidation send

. >> iag shares slump as they miss forecasts after disruption from an air traffic control strike weighs on earnings >> the uk july services pmi data is crossing the wires. the estimate was 54.7. it's actually come in at 53.5. below that estimate. that's against the june number for the month of 55.1. this is a three-month low. >> we are watching sterling weaken against the greenback, now below that 1.30 level. during mark carney's testimony yesterday sterling did weaken after that decision to raise rates. the assumption there was a gradual, limited, dovish hike, if you will. it's interesting to see with this weaker data what happens. moving on, the broader fx curve, we're keeping an eye on the dollar ahead of the non-farm payrolls report. you are looking at the dollar slightly higher against the japanese currency, higher against the euro as well sterling continues to weaken against the greenback. dollar is stronger against the yuan stronger in the session by 0.3%. this certainly catches the attention of the white house let's check ten-year yields. we had seen the u.s. ten-year yield abov

. >>> iag the owner of british airways is trading higher on reports that it is among the bidders for air berlin according to reuters, it's not clear how much of the insolvent carrier iag is interested in a number of companies including lufthansa and easyjet have confirmed their interest in air berlin ♪ let's get back to the german elections, just a few days away, german chancellor ank gela merk remains silent over the future of her finance minister. speaking at schauble's birthday celebration yesterday, merkel praised him for his service and said they're fighting together to win the elections annette is in berlin the key question in berlin is will he stay or will he go what's the talk on the ground? >> well, actually it's increasingly unlikely that he will stay. that's the talk on the ground given that traditionally the smaller coalition partner can pick a ministry of his likes traditionally that was always the foreign ministry now there is a clear conviction among all the martiy parties, was wrong to leave the cdu to angela merkel's party. it could still be amerimerkel's negotiation

to bring you one of the corporate stories in focus today, and that is around british airways owner iag. it will delete the airlines stock. snoo it is interesting to see them occur in such close succession >>. >> we know the context here, and this is going back many, many years. iag as a carrier group that has huge flbz of assets both inside mainland europe and then inside british airways, and they've des putined the way the europe even commission insists on majority eu ownership for eu-based airlines that goes to specific hubs as well we've heard from people like willy walsh going back that he is not happy with the way the european commission insists on this, and it seems to be now this conflict between the european commission and the airline group has now broken out into the open once again whether that's had an impact on the decision from msci not clear at this point, but it is worth looking at the way the european commission has made their announcements over the last few months and the way that aig and, in fact, other competenttives in the area, specifically companies like ryanair,

flybe shares soared after a paper reported that iag may be interested in acquiring the carrier. set to go head to head with virgin atlantic for the struggling carriers. >>> e.u. leaders have formally approved the 585 page brexit divorce agreement at a meeting in brussels this weekend after months of fraught negotiations theresa may faces a tougher political battle back at home. e.u. leaders struck a somber tone after signing the deal with german chancellor angela merkel saying she remained disappointed by brittain's decision to leave the block. >> translator: we have been successful enough in this attempt at reaching an agreement that balances the interests of both sides in respect to paying heed to the interests of both sides allowing for a partnership and all of that took place in the spirit that involved tough negotiations with never losing sight of the fact to have a win-win. my feelings are divided i feel sad, but also relief for what we've been able to achieve. >>> let's take a look at how some u.k. assets are doing sterling dollar is up at 128.30. .10 of a percentage poin

the likes of iag not managing to be in positive territory. speaking of which the european markets in general though are putting on gains on the back of the very large drops we're seeing friday and yesterday we saw a little leveling out to some extent although there still was negative activity in t-- negativetivi negativivity in the markets. like the banks for an example hired by two and a half percent. you would have noted uk banks opened in territory. oil and gas up by two and a quarter percent. everything is trading higher. auto being the weaker of the bunch, but just managing to cling on with some slight gangs. we may have settled a little bit for the time being not gaining back what was lost, but settling or feeling a period of calm, but of course we're just starting this very long process of negotiation from a political angle and european leaders, excluding david cameron, have arrived for a second day of talks in brussels. the uk minister told the summit yesterday that it will agreement movement of people was decisive factor in last week

the uk listed shares in iag sink to the bottom of the stoxx 600 in the wake of the british airways i.t. system meltdown over the weekend. >>> a victory in court for akzo nobel sending the patientmakers shares lower. a judge rejects activist investor elliott's call for action against the company and tells ppg it needs to put up or shut up on a bid offer. >>> ryanair forecasts fares will fall more than 5% in the year ahead, after posting full-year profit at the lower end of its guidance. the company's cfo told this show sterling's weakness in the wake of brexit was hurting fares. >> sterling has weakened quite significantly. that's having an impact on the fares. >>> the draghi put weighs on on the euro as the currency loses ground against the dollar after the central bank boss says stimulus measures need to stay. >> an extraordinary amount of monetary policy support, including through our forward guidance, is still necessary for the present level of underutilized resources to be reabsorbed. >>> good morning, everyone. it's tuesday, glad you're with us once again here in the uk, especiall

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you have iag shares down 3 1/2%. a fairly broad base pullback across the travel market.uro holding steady versus the dollar. sterling doing almost nothing. a little bit of a holding pattern after yesterday's fed minutes dropped. investigators are coming to terms with the fact that we are dealing with higher prices. >>> dow jones, 160 points. smp and nasdaq looking to extend losses after all three industries and the lower yesterday. >>> now back in the uk we actually had a ton of action. a huge amount of movement in the gilt curve. andrew bailey says he cannot give a date for when the bank will cut rates. the year on government debt reached its highest level and it continued concern over the country economy. that follows weeks of arising rates in the secondary market. 75 basis plus above current prediction for the banks terminal prediction rate. >>> all of this while u.s. -- uk office lease lacks have fallen. in the first quarter of this year according to property management platform, release, more than 12 percent of office buildings in the country are unused. andrew hall

iag is down after goldman sachs downgraded its rating on the stock to neutral from buy.the telco space, nokia has named justin hotard as its new ceo, replacing pekka lundmark. hotard is currently at intel and leads the data center and ai unit, and will take up the new position in april. outgoing ceo pekka lundmark spoke to squawk box just a few weeks ago, and was asked about nokia's succession plans. >> we are doing succession planning pretty much for, for continuously for all board roles and management team roles as well. and in that succession planning, we are identifying both internal and external candidates. and we are doing some. >> of that. >> work with external partners as well. i don't know if, if any of that would be behind those. those rumors, but what is important is that all of this is done is done in. >> full cooperation. >> between the board and management. >> tsmc says it expects to see its first quarter revenue closer to the lower end of its guidance, but reiterated its full year guidance. the chip maker also said it is making every effort to recover lost

largest mobil operator looks to finally complete the $26 billion t-mobile/sprint merger >>> shares of iag>>> bernie sanders leads in the primary race and michael bloomberg gains ground saying he will sell his company if elected president. we are watching uk data closely. let me bring the numbers to you. the number year and year has come at 1.8% versus expectations. core numbers of food, energy, alcohol and tobacco came in at minus 0.6% that is 1.6% year-and-year the measure that includes the housing kpoenents has come in 2.7% versus 2.6% and x energy. they have come in better than expectations in terms of health prices, they came in at plus 2.2% versus 1.7% in november. the biggest rise since 2018. london saw a jump of 2.3% that is the biggest rise on the back of the general election effect and the decisive victory surrounding the uncertainty. bigger numbers on inflation and when it comes to health prices as well. getting you to a check of the markets that have been open about one and a half hours yesterday, the stoxx 600 pulled back as the apple profit warning made its way through market

we are seeing further selling pressure we've got red on the board from iag down 2%. lufthansa taking another hit down 1.4, carnival a bit of news out of tui the company has slashed capacity to 40% of its normal winter season bookings for the german travel giant are down almost 60% in total as travel restrictions continue to weigh. tui has lost 60% of market value said it is on track for an agreed government support packet >>> airbus has warned it may not be able to avoid further cuts to avoid layoffs. saying the situation in the airline industry is worse than we thought already unveiled plans to shed 15,000 jobs citing a slump in air travel demand. let's bring in mark manduca from citi this plunge in the travel sector that kicked off yesterday has gotten a lot of attention and we are seeing further losses. what do you make of the selloff? are these concerns confounded? you summed it up as worse than expected it is the lack of visibility half of all bookings are taking place in the last week before flight these airlines can't plan for their business of course no plann

ryanair, both higher iag took a pump elling yesterday. they are still not performing. down 0.97% one of the big concerns around coronavirus is that demand in china will dip bhp, angel american. they are still well into the red after a difficult day for them yesterday. south korea saying it is going to launch mass testing the u.s. has pledged a billion to find a vaccine. you can see some of these companies in europe are performing a little better than yesterday. some of the optism there the vaccine might happen sooner than had been happening before. italy confirming at least 200 people have contracted coronavirus, seven have died and authorities continuing to quarantine 10 towns in italy accounting for roughly a third of the country's economic output austria and switzerland are tightening the border with italy. the european commission said it will not consider closures in the shenzhen zone. >> the italian minister said it may call for leeway from the eu. it has raised concerns that italy could end up with a technical recession. >> let's look at the italy 10-year spread

iag and rye yan air lower. carnival is lower. lot of appetite this morning for travel and leisure stocks >>> moody's found europe's travel found more in the south, movement to the country's health profile will help mitigate the risk great to have you with us. we are hearing from our correspondent who cover france and spain telling us about the rising numbers there when you look at the revolution of the outbreak in recent weeks, how concerning is that for you >> we are already expecting growth numbers across the world are going to be significantly worst this year. one of the things we've looked at in this report is really what ongoing health concerns can do for tourism in these countries we expect significant declines in tourism this year it will be a couple of months before the final verdict on this we are looking ahead to 2021 we don't expect the industry to make a full recovery but thinking about which countries are more vulnerable recovery is quite important for their growth profiles next year >> when you talk about those coun

shares in iag and easy jet are lower after the uk announced travelers from belgium andorra and the bahamas after the countries have seen a rise in cases. the changes will begin on saturday with the government warning against all but essential travel to those destinations >>> coming up on the show, trump ticks off tiktok as a national security threat. more after the break ♪ the covid-19 pandemic is creating food insecurity on a scale not seen in decades. an estimated 54 million americans will struggle with hunger. ♪ with 200 food banks and 60,000 meal programs, feeding america is the largest hunger-relief organization in the country. join morgan stanley in supporting feeding america and your local community food bank. ♪ andputs its customersity a wiin charge?rier well, the good news gets shared. and it gets rated #1 for customer satisfaction. but don't just take our word for it. take theirs. it's your wireless. your rules. only with xfinity mobile. call, click or visit a store today. >>> welcome back to "street signs. officials from the sec have urged president trump to delist companies fro

red print for friday's session travel restrictions have an impact on that section today 6% down from iag, easy jet and ryanair down u.s. futures with a weaker start anticipated for the start today. happy friday, have a good weekend. "worldwide exchange" is up next. look here, it's your very own all-in-one entertainment experience: xfinity x1. it's the easiest way to watch live tv and all your favorite streaming apps. plus, x1 also includes peacock premium at no extra cost. this baby is the total package. it streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. yup, the best really did get better. magnificent. xfinity x1 just got even better, with peacock premium included at no additional cost. no strings attached. >>> it is 5:00 in boston your top -- "top five@5. stimulus stalemate and the maker of

looking at the airline space, we are seeing a little mixed picture but pretty substantial gains in iag up 7% this morning. strong reaction. easy jet shares up ryanair extending two points up 8% yesterday, the "squawk box" team spoke to the ceo of ryanair. steve, what more can you tell us about what the uk government had signaled and how it compares to what had been on the table before >> a lot going on in this space. do not under estimate the large amount of lobbying from industries saying you have got to lessen these restrictions there are no real restrictions on coming in and out of this country at the moment, which seems extraordinariry. quarantine checks and health care checks. now the government is saying from the first of june, we'll have quarantine with a few exceptions the haulers and one of the routes that comes up from dover. a lot of exceptions have been asked for and none given so far. there are a whole host of people who think it is absolutely damming. saying the uk should involve a risk based approach. another we spoke to said if this happens, it is a major deterrent much

a bit of pressure coming together with iag, lufthansa and easy jet trading lower ryanair as well. air france klm down, wizz air bucking the trend. more coming out of australia that no doubt highlighting the vulnerabilities across airlines. virg virgin australia has gone into voluntary administration the airlined buckled under a $5 billion debt burden. it reached out to creditors trying to recap recap tallized the business offering his home as collateral. reporting the treasury told the carrier to resubmit its bid having been unempressed with its application. >>> leaving the airlines now to danone that withdrew guidance. adding that the second quarter will be deeply hit the french food company did post higher first quarter sales citing consumption to the imposed lockdown >>> psa reported a 15.6% decline. shares there trading about 2.4% lower this morning let's get to charlotte reed with more despite the relatively grim outlook for the sector and company, they've maintained their margin targets >> you are right the results for psa are a little better than expected revenue down 15.6%

iag almost 5%. seeing a strong price action in airlines space basic resources, the china-affected sector is up. >>> infinion is trading on top the german chip maker reported revenue that met forecast during what is traditionally seen as a weak first quarter segment margin rose by over 15%. they said it expects to complete the $10 billion acquisition. the ceo spoke about the coronavirus damage >> it is one sight overlaid by the chinese new year on the other side, we do not know when business is coming back to work we expect none of the companies will reemerge on the 10th. we don't know how this detail will be. we see that china will be issued across the market to provide liquidity. one push over the other. >> could it have an impact on your business going forward? >> it could have we are prepared on the other side where business is very dynamic. it comes on the short term like that we do not expect it will have a long-term effect >> also said he expects innovation in auto space to focus more on self-

iag taking a hit as is airbus. difficult day in the airline space. one area that is seeing significant demand this morning is in the defensive stocks germany agreed to send weapons to ukraine making historic u-turn in the post-war policy. that is world war ii olof scholz signed off on the issue. also allocating to an armed forces fund and ramp up to the military spending. this pushed defense stocks sharply higher with the largest beneficiary of the shift you see the defense stocks are catching incredible bid this morning as investors price in what this increase in defense spending will mean for the stocks the manufacturers of the defense goods. i want to flag what is happening in the russian ruble the center of the attention over the weekend. the russian ruble with losses. moving to 97 versus the dollar down on the day. currently at 100 the central bank in russia coming out this morning trying to over defense of the currency and reassurance that we won't see a further plunge in the ruble. let's talk through that will be the case the head of the strat

. >> thank you let's bring in the chief economist in the eurozone and head of macro at iag the contraction in the first quarter clearly only cover the lockdown window. what do you feel so far is the damage for germany >> not as strong and severe as other european countriesbecaus the construction sector was still strong in the first quarter. this was only two weeks of lockdown now that we are going into the second quarter, this number gives us the idea that second quarter will be much worse and we'll be back at the numbers which will be worse than we saw in the 2008, 2009 cry sustain. >> can you give us a link. germany was held up in one place that was higher steam because of the testing and the managing of this slow move out of lockdown is there going to be a link for germany versus other countries that have handled this crisis as well >> there is a link if you look at the mobility data, you will see that lockdown measures with less slow down activity for example in spain and italy. now that we are already in a period don't forget, the german government started to lift these measures in ap

. >> a couple of stocks on the move today include the owner of iag. that stock bouncing 2.9% a strong print taking place for the british airways. lufthansa, 1.5% higher air france, klm in the green so fairly good news. easy jet isso outpacing along with ryanair is bouncing nicely tui are having challenges. that stock is up 1.1%. the cruise ship operator, carnival is a big one. also getting bounces of roughly 3% so fairly up beat tick taking place. >> looking at oil prices, another component. and we've clearly moved off some of the lows in the session you can see oil prices around the storms in the gulf of mexico wti just slipping a tad. let's get to our guest, the associate in research. one of the big cause is the potential of further consolidation of the north america airline market give us a sense of who you expect >> it is a good point. it is linked to cash burn. i think winter is going to be one of the seasonal problems for the airline that we are facing a tough environment and probably a bitter and bleak back drop what we see in the north atlanti

iag saying it will moderate capacity expansion.owever the owner of british airways did beat expectations in the first quarter with higher than expected profits. >> rbs has posted a wider first quarter loss as the british bank struggled with lower income and higher restrshing. however results also showed net interest margins stabilizing and loun growth. >> and first quarter profited dropped 8%. still the symptom motock moving. meanwhile the petro chemicals division slumped 36% on lower prices and volumes. the german company stuck to its full year forecast. >> and dansk bank is maintaining full years earnings guidance. ceo explained earlier how the bank was dealing with negative rates. >> denmark is a special situation. we have a currency bard you saw last year the big focus on protecting the krona. when there was pressure on it. we are now running very negative rates. over the last 12 months in the dansk bank accounts you have seen obviously we've had to deal with that. and -- it is not something we have a specific political view on

passenger figures will not return to 2019 levels for several years due to the coronavirus outbreak iagompany, says up to 12,000 jobs may be lost >>> airbus has reported a 50% drop in profit as the industry has faced the gravest season it has known. unmatching production to its demand let's get more from charlotte on airbus today >> airbus putting results out saying they cannot confirm the guidance as well as dividend they are struggling with airlines holding on to cash while all flights have been grounded in the pandemic crisis. delaying and canceling some of the plane orders made so far here they are trying to manage this new environment in discussion with several of these. airbus has cut cap ex by $700 million this year in 2020. it keeps mentioning that they have very limited visibility when it comes to the new environment and that will reassess in june their production format and has been announced to carry out until june they said in q1, there were 60 aircraft produced but could not be delivered this number could be even higher in q2. again, this is the situation airbus is dealing

iag trading lower on this news, too. off by more than 15% now. moody's downgraded the sovereign outlook. they say economic effectiveness might be diminished as a result of the vote. cnbc spoke to the head of the rating agency and asked him what moody's expected would happen during britain's eu exit negotiations. >> we expect the u.k. will reach an agreement with eu that it will trade in the way it currently does. if it doesn't, we will see a short on economics. if it does, growth will come back. we expect to see growth of around 1.5% this year and close to 1% next year. not looking at a recession. what we'll see if the u.k. is not able to agree to the kind of trading arrangements that it currently benefits from in the eu is sustained materially low growth over the median term and that would be bad for the u.k. >> let's go to john. good to have you with us. as we sit here a world away from each other, might be interesting for viewers to hear what you guys are talking about in china. what's the view? what's the reaction been to the brexit vote? >>