will go on to groups like iag.s like iag. one of its biggest strength is that it has a wide portfolio, it covers different business models, it attracts customers and brands. the premium end of the customers with airlines like british airways and iberia so it's covered in all angles and is very flexible in how it deploys that capacity, willing to move aircraft and routes as it sees changes in the marketplace. since its formation with the merger of ba and iberia, iag has been mopping up allies. today, thomas cook has been ruled out but can we expect iag to add further airlines? i think it's interesting to me that they pulled away from the region, i primarily a low—cost airline, a new business model proving popular with customers. it has a lot of challenges to address which i think is what made iag pull away from it. i think they will selectively look at other airlines let fit in with theirfamily, so at other airlines let fit in with their family, so to speak. all the other airlines that have come and have been profit

iag as the demand for. . ._ banks moved was cutting rates. iag as the demand for..._ as the demand for... apple has been forced to apologise after _ as the demand for... apple has been forced to apologise after its - as the demand for. .. apple has been forced to apologise after its new- forced to apologise after its new ipad commercial sparked an outcry around the world. the ad showing books, musical instruments and art materials being crushed by a giant hydraulic press was supposed to issue how creativity has been compressed into the latest ipad. but is it has been seized upon by critics, who says it sums up the cycling of duty by big tech, and even the threat from artists by artificial intelligence. so how did you get it so wrong? mark, for all the outcry we have seen online, as it speak to a sense of tone deafness by apple here? i it speak to a sense of tone deafness by apple here?— by apple here? i think it is corporate _ by apple here? i think it is corporate hubris. - by apple here? i think it is corporate hubris. for- by apple here? i think it is corporate hu

what is it about norwegian that fits so well with iag? why is it so important?m isa with iag?ery large, pan—european, low—cost airline with a solid network. you know, it's got a presence at gatwick. that could be quite nicely consolidated with a british airways operation. that would work well. what we have seen over the last two matter years is british airways following norwegian into long—haul markets. they've gone to fort lauderdale, they've gone to california, following norwegian. it would make a lot of sense for that to be scared back to just one airline operating, because you tend to make more money when that happens. talking about budget airlines, we had one of the darker clouds within the set of numbers? 0riginally clouds within the set of numbers? originally a spanish —based airline, they have to micro herbs in paris, one at charles de gaulle, and they have one in rome. bosch they have two herbs. they fly over french airspace and get it more than anybody else. the other irony in this is that air france are one of the poorest performers in europe at the poorest performe

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

where is the chief executive of iag 7 disgrace. where is the chief executive of iag?at about the chief executive of ba? yes, the big honcho is the head of iag. the silence has been deafening. yesterday in madrid, shares fell by 396 yesterday in madrid, shares fell by 3% which i thought was very generous. i think they will fall 10% soon. we have seen generous. i think they will fall 10% $00". we have seen a generous. i think they will fall 10% soon. we have seen a very different view on this, we saw that this was a two—week wonder. everyone will be very angry, shares will go down, and then ina very angry, shares will go down, and then in a few weeks, when you're booking your next flight, you will look out british airways and think, 0k, fine. it depends what else is out there. you've got to think of the business flow over a year. i think they could be damaged for a period of six weeks. what would you be advising them to do? people were having to pay hundreds of pounds to get on a different flight. they didn't get compensation. they will get compensation. but they have h

what is it that iag is doing so right right now?lements, overall regulatory framework which is common, economic geography coverage of the region they are in and a flexibility of business model and what iag is doing very well at at the moment is that ability of business model across the whole spectrum of markets. do you mean from cheap right up to the luxury end of the market? leisure to business end of the market and also reflecting the demand in north—west europe and south—west europe as well. there are some gaps in that, they have some gaps they could fill in terms of the market? looking at central europe and eastern europe, the coverage connecting through london and madrid is quite weak. so i think that is something that was indicated about their interests, for insta nce indicated about their interests, for instance in nicky, to fill the gaps. when we talk about iag we often think about british airways because it is the big lump within this body of companies but obviously, their main hub remains heathrow, discussion about a third

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

so do you think iag will chase it?ope to scandinavia business which makes loss. iag could come in and through —— pics free potential issues, which is the long haul business need more protection, and more corporate travellers, which iag could switch on overnight and give them the track record in restructuring low—cost airlines like vueling. they could help norwegian how to improve profitability on the tube to scandinavia routes. it has to raise more funds and it made a loss last year. it is struggling a bit, isn't it? i am concerned at this point. we are at the point where norwegian has not increased any fuel hedges, which means increased in the fuel price hits their bottom line and they are deepening their losses. they are -7.1%, deepening their losses. they are —7.1%, and that is not a pretty picture. norwegian, without any deal, will have to consider restructuring the business fundamentally. are theyjust holding up fundamentally. are theyjust holding up more from iag? it has been made clear today that iag will not pa

, they are very profitable as pa rt context, they are very profitable as part of their parent group iagsfy customer needs to attract business in a competitive market they wouldn't be that strong. they have had to take on challenges because we as customers are looking more and more for good prices in our travels, also ba has to compete against low—cost carriers and equally have to compete at the top end of the market with premium customer brands like the airways and emirates. they have to invest in the premium product if it means we get lower prices at the bottom end by competitors, and we go to the competitors if ba doesn't offer them, they have to make sure they do the same thing and they have to look at their cost efficiencies they can do that without losing money. this strike starts tomorrow, 16 day strike. what is it about? as we heard, there was a strike or a series of strikes earlier in the year about pay and ba's mixed fleet, they said that a few years ago to deal with issues to make it more efficient in terms of cost levels for cabin crew and productivity and the union in fact a

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

i age iage and, i age and, you know, iage and, you know, i i age and, you know, i think you can neverhey have been the captain, because you're not sure how they will act. you don't really know how they will do thejob. he you don't really know how they will do the job. he is a world—class player, the best batsmen in the team. i think he is a very thoughtful player, i think tactically he is very astute. i do think he will make a very good captain for england, and if it is next year i think he will do a tremendousjob, no next year i think he will do a tremendous job, no doubt about it. the twice wimbledon champion petra kvitova has undergone a four—hour potentially career—saving operation after a knife attack in her own home. the world number 11 says she's ‘fortunate to be alive' after grappling with a burglar at her flat in the czech republic. surgeons operated on her left hand, her racket hand, to repair tendons and nerves. she'll be out of action for at least three months and the likelihood of a full recovery is unknown. celtic have gone 14 points clear at the top of the scottish prem

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

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

at the paris airshow, the latest buzz has been about british airway‘s owner iag putting its faith inr iag putting its faith in boeing's troubled 737 max jet, despite it being grounded worldwide since two deadly crashes in the past year. 0ur correspondent theo leggettjoins us now from the paris air show. theo, talk us through exactly what ba and iag have been saying about this purchase and what the mood is about what they have done. well, it is hard to overestimate just how important this is for boeing. international airlines group has signed a letter of intent saying it wa nts to signed a letter of intent saying it wants to buy 200 737 aircraft. that is not the same as a firm order but it would be very surprising if it rowed back on that. iag is saying it has confidence that boeing can fix the 737 max and software fixes will ultimately work, make the aircraft com pletely ultimately work, make the aircraft completely safe and enable it to be sold for many years to come. for boeing, that is incredibly important, this is its flagship aircraft. it has a backlog of about 5,500 aircraft. a

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

iag, a good evening once again. _ still not released. iag, a good evening once again.d. iag, a good | evening once again. i associate still not released. iag, a good - evening once again. i associate my remarks _ evening once again. i associate my remarks of — evening once again. i associate my remarks of the jennyjust had to say, _ remarks of the jennyjust had to say, this— remarks of the jennyjust had to say, this is— remarks of the jennyjust had to say, this is a chess match —— i agree — say, this is a chess match —— i agree. hamas is calculating that if we let_ agree. hamas is calculating that if we let 2-3 — agree. hamas is calculating that if we let 2—3 go here and there, it will delay— we let 2—3 go here and there, it will delay the inevitable ground invasion— will delay the inevitable ground invasion of the gaza strip. in my heart _ invasion of the gaza strip. in my heart goes — invasion of the gaza strip. in my heart goes out not only to those who were murdered in this terrible attack, — were murdered in this terrible attack, but my heart also goes out for the

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

this is notjust disrupting iag, but other carriers.pean commission to enforce the overflight rules, which is part of free movement within the eu. and this is very important. the airlines including iag are saying we are not challenging the controllers right to strike, but why can we not fly over the airspace? why do we have to have the airspace? why do we have to have the flights disrupted ? the airspace? why do we have to have the flights disrupted? when that happens, diverted flights will increase the fuel consumption and eventually the house and knock on impact on the airline ticket price. that is one challenged airlines. another, the rising fuel costs. exactly. and they are showing no signs of abating. 0bviously, fuel, isa signs of abating. 0bviously, fuel, is a fact of life for people. it is something they have to live with. it is their bloodline. they need that fuel to be able to operate, so some airlines hedge against that so that they can manage through the lean times. 0bviously, they have to keep a weather eye on the cost of fu

but arguably others like iag and job. but arguably others like iag a nd luftha nsa job. lufthansa have done better. air france and klm never integrated, there is mistrust. air france specifically has not restructured as much as it has to. and the chief executive resigned and the decision for the new leader will set the tone of how the talks carry on? that is what i would say. the chairman has the choice, a typical air france choice of bringing somebody new in every two years, or deciding for restructuring candidates, arguably to deal with the situation effectively that is fairto the situation effectively that is fair to the plough use you would need a leader to be there for almost a decade to solve this issue. —— deal with the situation effectively ina way deal with the situation effectively in a way that is fair to the employees. the likes of british airways and lufthansa have adapted to this new markets, why have air france not been able to do the same? iag, ba and lufthansa went through a series of bad strikes, at the time everybody said this is the wrong strategy, yo

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

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

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

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

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

that is iag, i promise you. oil prices moving up 2.73%.t the euro, the pound down against the euro below one .10. still a better way before the lowest it's been, but not looking too strong at the moment. we are here and now that president trump spoke to new prime minister borisjohnson trump spoke to new prime minister boris johnson yesterday to discuss new areas of cooperation, especially relating to trade. the president has reiterated his strong appreciation for the special relationship between the us and the uk, noted he is looking forward to meeting the prime minister at the g7 summit later this month. the trade war between the united states and china also escalating today, beige and threatening to unleash what it calls countermeasures against us plans to impose tariffs on chinese goods. and the quote from the foreign ministry spokeswoman was, china expresses its strong dissatisfaction and resolute opposition, and if the us implements the talent measures, they will have to ta ke the talent measures, they will have to take measures to re

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

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

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

that was the chief executive of iag.ges. this headline from the seattle times. a lot of the newspapers are covering this story that the boss of hours and briefly became the world's richest man before slumping back down to number two. do great riches come with great responsibility? what should we be doing with these levels of wealth? ifi doing with these levels of wealth? if i were him i would use my money in scientific research to help find a cure of aids. a couple of other tweets have also suggested a similar tack. that is interesting. amongst the world of the super rich here is unique in his lack of philanthropy. i'm not sure that is necessarily true. we should acknowledge that people like mr gates has given around 30 billion, he has made a vast contribution to philanthropy. there is a history in the united states of leading players providing large sums of money. he is spending around $1 billion a year on his rocket business. it is all very well saying he should give the money away. he would have to sell the shares. wh

iag says the recovery of passenger demand to 2019 levels will take years.ace to advise the public to wear masks in areas where social distancing is difficultm distancing is difficult, such as shops and on public transport. the uk government is yet to announce its decision on masks but the health secretary said their use was based on weak science. spain's prime minister, pedro sanchez, has outlined a four—phase withdrawal from one of europe's strictest lockdowns, with the aim of getting back to something like normality by the end ofjune. social distancing will remain but schools won't re—open until september. president putin says the peak of the coronavirus outbreak in russia has not yet been reached and he's extending the lockdown until may the 12th. he said the spread had been slowed but warned of the risk of acting too quickly to lift restrictions. so far there's been 867 recorded deaths. vietnam has won praise as one of the most successful countries in combating the coronavirus pandemic, so much so, vietnamese nationals in other countries are now returni

iag says the recovery of passenger demand to 2019 levels will take years. homes in england are to be eligible for coronavirus tests from wednesday, whether they have symptoms or not. scotland, wales and northern ireland are expected to follow soon. latest figures suggest a third of all deaths in england and wales related to covid—19 are in care homes. they've not been included in official figures so far. 0ur social affairs correspondent, alison holt reports. at st cecilia's nursing home in scarborough, like many homes across the country, they believe the fight they have been waging against coronavirus for weeks is only now being reflected in officialfigures. this is the area that we will have for anyone that's being barrier nursed. they locked down early, have areas set aside for nursing coronavirus residents, and people stick to their rooms. but still, across the three homes in the group, they've had 11 deaths, four confirmed as covid—19. i was called and did see her for the last — on the day that she died... one of the residents who died was reg kemp's wi

in other developments, iag, the pa rent other developments, iag, the parent company of british airwaysas warned the airline could make up to 12,000 workers redundant. agencies is a lack of resources in conflict zones should see the spread of the virus continue, while in france, all food shops will reopen for may the 11th, but bars and reopen for may the 11th, but bars a nd restau ra nts reopen for may the 11th, but bars and restaurants will remain closed. we will have much more on all of stories, but firstjudy much more on all of stories, but first judy bryant much more on all of stories, but firstjudy bryant reports. a salute to the covid warriors. the blue angels and thunderbirds paying tribute to those on the front lines on the battle against corona writers. they flew across the northeast and a —— uplifting spectacle for residents and lockdown. new york continues hit, but today a glimmer of hope. what we've seen is clearly progress. when we can start to make some of the move to open things up, but i will say it again, we are being cautious and careful and governed. it will be gather

british airways owner iag is cancelling 75% of flights in april and may.e to ground most of its planes. the uk aviation industry wants more help from the government to survive a long—term travel freeze. there are lots of different ways to do that. one is to prevent those flights from having to take off nearly empty, those ghost flights that we have been dealing with, then there's things like time to pay, facilities through hmrc. be in no doubt, we understand the severity of what is going on. and other operators, including ryanair have warned that the grounding of entire fleets cannot be ruled out. so many airlines are cutting capacity. some are also laying off staff. it's not just capacity. some are also laying off staff. it's notjust the airlines but the other businesses that rely on them to get customers around. it's a crisis of unprecedented scale, and the industry are struggling to get his head round it. meanwhile, on the railways, monday morning rush—hour was much quieter than usual. more companies are asking staff to work from home, overfears about t

there are some major carriers, like iag, lufthansa, ryanair, these carriers, like iag, lufthansa, ryaups carriers, like iag, lufthansa, ryanair, these groups do have large amounts of cash but they will start to see that go down. it is the smaller carriers, or those that have not been around so long, that you have got to look at to question just how long they can survive. norwegian airlines, with air, alitalia, which has survived so many disasters over the years, can you come out of this? airlines will be sent to government, uk government, we badly need your help now. so far, the government has said we are not prepared to help you. it is going to be interesting to see if they do step in. when you realise just how much of an economic emergency this is, notjust a public health emergency. do airlines have insurance? yes, insurers backed them through the aircraft particularly, doggedly business insurance as well, but as we have seen, airlines do go under. flybe most recently in the uk, and coronavirus really was the nail on the coffin for them. i think you saw last week lufthansa of german

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

norwegian airlines has rejected two separate takeover bids by the british airways owner iag.tes across the atlantic. it said that iag's bids fundamentally undervalue the firm and its prospects for further growth. iag also published some pretty healthy operating profits — up 75% for the first quarter of this year — and it's among the top risers on the ftse today. a bounce back for car sales. after months of falling sales, the industry has finally reported a rise in new car registrations of 10% in april. however, that should be put in context. it is 10% up on april 2017 when sales saw a massive 20% collapse on the introduction of new tax rules. a series of national competitions and programmes are under way, designed to identify, inspire and enable more young people to go into the cyber security profession. they are the winners of a contest designed by the bank and cyber security challenge uk to find the next generation of cyber defenders. they were asked to put together a plan to defend britain's central bank against cyberattacks. but how hard is it to find young people to take

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

iag made around $1.2 billion betweenjanuary and june.n the same period last year, but it has forecast that four profits will match last years. higher strikes are looming for british airways and the fallout from the data breach that saw hackers steal personal information from half a million passengers. the outlook is looking uncertain for the whole aviation industry. we can now talk to our guest, a global aviation expert and senior lecturer at the city university in london. captain tillman, tell us first of all, what are the unique differences between ba and other airlines and to the problems they face because obviously there is something going on in the global aviation industry that is causing this downward trend. the problem we have is that we have a situation here, especially in the uk, with the declining pound. that is caused by this hard brexit, so thatis is caused by this hard brexit, so that is the feeling british airways must consider. the effect of the declining pound will create a lot of higher costs in fuel that is paid for in

british airways owner iag is preparing a bid for u.k.ed airlines fly be according to the sunday telegraph. the atlantic confirmed it's also considering a bid. this could be the latest move in ongoing rivalries between the iag had an virgin owner richard branson. financier joe blows presence a board meeting would erase the official report. they said it was done at the request of the printable secretary. wasappened before a report presented in 2016. the malaysian anticorruption commission said it started an investigation into the matter. that's your bloomberg business flash. manus: thank you very much. now, axis of interview. interview.sive this as it seeks to profit from the fastest-growing part of the oil industry. you also address the uncertainty around the business' ipo, but he dodged the issue after the scandals running the death of journalist jamal khashoggi. the man is healthy. we're looking at between 1.3 and 1.4 this year of additional demand. next year will be also the same in terms of additional demand. we're crossing hundred mi

iag and the travel sector.are starting to cig's cash rate come into the market -- iag's cash rate come into the market. this is the company that owns iberia, it owns british airways. tough talk from the travel sector. we are certainly seeing more evidence that we are seeing a fate in terms of demand coming through for air travel in europe. air travel from a different is aective, sasso aviation french company that makes corporate jets. it also makes fighter jets. there is a geopolitical angle on this story. grease announcing it will be buying 18 of these advanced -- buying announcing it is 18 of these advanced fighter jets. tensions are rising in turkey and having problems internally. frome is buying more france and not the united states. we are seeing -- so being one of the main beneficiaries. kailey: let's look elsewhere in geopolitics. the eu is stepping up demand on china to open its market further. the european council president said differences between the eu and china still exist. >> differences exist and

iag out with numbers. european equity markets going sideways to be honest. priced in some of this economic data but that claims that ahead of the big number tomorrow on inflation. i think telling us a story in this economy is still coming along. kailey: the data still looking hot and the labor market still looking strong. investors trying to figure out how to price it. balance of power is coming up. the comes in from ohio will be joining on bloomberg television and radio. you're heading off to the radio studio. guy: talking more about keir starmer's product -- promises. we will be having that conversation on dab digital radio. this is bloomberg. ♪ get help reaching your goals with j.p. morgan wealth plan, a new tool in the chase mobile® app. use it to set and track your goals, big and small... and see how changes you make today... could help put them within reach. from your first big move to retiring poolside and the other goals along the way wealth plan can help get you there. j.p. morgan wealth management. >> this is "balance of power with." david westin.

iag says the recovery of passenger demand to 2019 levels will take years.ple to wear cover theirfaces in enclosed public spaces, such as on public transport and in shops, in order to prevent the spread of coronavirus. the announcement marks a divergence with the uk—wide approach, with borisjohnson‘s government reportedly considering scientific evidence for introducing similar advice. a minute's silence was held across the uk this morning to commemorate the essential workers keeping the nation going, in the face of personal danger. more than a hundred nhs and care staff have died with coronavirus, as have many other key workers. china has insisted it should not be blamed for the covid—19 outbreak and has suffered along with the rest of the world during the pandemic. president trump has made it clear he feels beijing should have done more when the virus first emerged. but speaking to stephen sackur on our hardtalk programme, china's ambassador to the uk said, it was the virus, rather than his country, which the us should be targetting. i think presidency and

let's start with iag, are you surprised shares have risen in iag as opposed to falling?hey started trading this week there was a big reaction, but it's re cove red there was a big reaction, but it's recovered its poise and i think although the big issue is that there's been a pr disaster and that may have long—term consequences particularly because british airways sell premium brands and reputational damage may follow exactly unquantifiable. if you look at the bottom line, is this it outage going to stop people travelling on british airways f it a route they want to travel at a price they want the answer is probably no. the ftse hitting another record today. answer is probably no. the ftse hitting another record todaym fell back towards the latter half of the day, another record, is that about currency position or is something else in play? quite a lot of things in play, the currency in terms of movement we have seen, also arise in terms of the prospects for the commodity centre because of the rise in the oil price we have seen that's all helping. it's quite strange we h

iag down by 4%. mr. dudley in the u.s. talking about the shallow takeoff. healthy sentiment in equity markets. they have a consistent vote on the fomc. there is a 33% premium in the six euros on the fedex bid. hotel at 1.5%. raising the stock to outperform. they set a target at 55 euros. 46.51 is where we are now. up 1.32%. this is a stock that takes all of the boxes. air france is down 2% at eight .24 euros -- 8.24 euros. more airstrikes to come on the eighth and ninth and 16th of april. let's see how the tnt deal opens up. jon: let's talk about the deal of the morning. fedex agrees to buy tnt express 48 euros a share, that comes up to 4.4 billion euros in total. caroline hyde has been following the story and talking to a senior executive. let's head straight to the details. caroline: david being is who we spoke to and he was really talking about how they are bringing together two very strong brands that do not actually overlap too much. they are not worried about regulatory approval. you have the united states on one side fedex is very strong in air cargo

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

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

francine: are we closer to iag taking over aer lingus? key role in this battle. iag wants backing from the irish government and ryanair on this. we have a cabinet meeting in ireland today by the government. we might get an update. it is likely they will throw their weight behind the bid and then iag can go ahead. the ceo of iag said they are not in a rush to do it and they want to make sure they do it right. we might see some movement today around midafternoon. watch out for that. francine: thank you so much. coming up in the 1:00 hour, we will be speaking to the ryanair ceo, michael o'leary. we are joined by barclays european airlines analyst. great to have you on the program. ryanair has guided five times above what they were forecasting in the last year. this is pretty impressive. is it because they are playing catch-up or are they really doing that much better than all of their competitors? >> partly, they are always very conservative with guidance. we have guidance for the full year of 2016 that includes a winter period which they ha

iag has managed to avoid taking government funding.e is still relying on its own resources and already was leading the pact on the green agenda. we look at lufthansa which took quite a chunk of government funding, not only from germany but from other countries. lufthansa has just done a big rights issue. air france klm a bit different. a bit murky. how much government will stay in that airline group, having funded the french government and the environmental stipulation into that funding. it is a mixed picture in terms of airline freedoms. the local carriers are out there having just had a successful rights issue at ryanair. very cash flush relatively speaking given the depth of the crisis. we are seeing new aircraft which are more fuel-efficient such as the 737 max in the case of ryanair or a320 in the case of other airlines. we need to see a much more cooperative and collaborative approach from governments. this is the message we will hear from willie walsh. we need a lot of investment to speed up the process into the future. the sect

iag is suffering as a result of that. then you have adidas.have had problems in vietnam in terms of the supply chain. china is a really big market for them. you have a move to buying local brands and also to close stores avenue -- as a result of what is happening with covid. >> i was warned not to call it adidas although every fiber in my being once to do that. we are joined now by and analysts in berlin. how much of this is a china covid story? >> has a lot to do with china. this was supposed to be a big year for adidas. in the western hemisphere, we have big sporting events like the world cup in qatar. then everything went wrong for them in the key market in china. that accounts for 20% of sales. that fed through to the numbers that they revealed today. sales are down, profit is down and the outlook is needed. a lot of this has to do with the fact that the business has ground to a halt at least temporarily. there is a slide from the ceo that showed customer frequency per city and he didn't sugarcoat it by saying shanghai down 100%. nobody is