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's plans include building a new trans-atlantic hub at dublin airport. cyril: that is it for the day's business news. now it is time to take a look at the press review. thanks for joining us here on "france 24." florence villeminot is on the set. a lot of focus of course on the greek debt crisis. florence: europe is really holding its breath against -- ahead of sunday's reform deadline. it seems like papers are running out of creative ways to talk about the greek debt crisis. i did find an amusing article that likens european negotiations about the debt crisis to a big poker game. very creative, different way of looking at things. it calls the greek prime minister, alexis tsipras, the greek bluffer. cyril: i notice all the chips are in front of mario draghi. florence: exactly. he has a lot of power. alexis tsipras only has one ship left and is all out of trump cards. the german chancellor, they call her uncompromising. she has a good hand, but she has a lot to lose. i like the way they call the french president -- they say he is a pretty good bluffer. he

you have iag, aer lingus. aer lingus say they are discussing a new bid from iag. iag down and eight of 1%. apparently ryanair's holding has been on the block for one month. >> that is how markets are opening up. markets are a little bit lower. i am looking at the footie down by half of 1%. the greek anti-austerity party won the decisive victory over the weekend. guy johnson is standing by. i guess the big question is what this result will be for greece's future in the eurozone. are we getting a little ahead of ourselves? >> i think we will find out. it's going to be an interesting morning. it was a fascinating night last night. he arrived with police outriders. he is prime minister elect. you got a real sense watching him talk to some of the activists, a real sense of relief that they have done what they set out to do. a big win last night for his party. as he addressed the crowds, he talked about this being a turning point for the greek economy. >> the sovereign greek people have given a clear, strong, indisputable mandate. recessed turn the page. greece is leavi

iag would take out a competitor. does iag need more than the other?hat seems to be norwegian's biggest lagos that they don't have the support from a bigger network in case something goes wrong. if norwegian has some disruption, the only wait for them to get passengers from london to new york is to use another aircraft or put them up in hotels, which costs a lot of cash. that is weighing on norwegian. otherag offers is airlines -- british airways. qataraught our -- airways. it generally support the norwegian mechanism. mark: iag strong today, outlook looks good for the year. that was very. ben: remarkable, actually, earnings from iag. they're quite bullish on the rest of the year. z on the tussle, we will call it, between iag and a norwegian. vonnie: we will be talking about telecom later on. interesting outcome there. coming up, the federal reserve is back in focus. we will speak to the former fed governor kevin warsh. this is bloomberg. ♪ mark: live from london, i am mark barton. vonnie: from new york, i am vonnie quinn. this is "bloomberg markets."

you talked about iag. up 1% at the moment. after six months of waiting we see the irish government has given the green light to the government stake in aer lingus being bought by iag. it looks like that extra hurdle of getting pushed through has put iag that much higher. this is the retailer. big presence for the united states. the laces for these two companies are meant to be combining up by 1.5%. no news on m&a. investors want to hear it was a more clarity on that deal. u.s. sales looking flat relatively weak, coming in less than expected. they are having to put more money into promotions. they have competition in the u.s. we have the exclusive interview of general holiday -- generale's chief executive. positive economic position and their cash flow looking good as well. back to you guys. jonathan: after a day of losses a little bit of a rebound in the market this morning. the dax up .2%. we are going to athens for the latest on the g-7 meeting and a conversation on greece. and we bring it back to the u.k.. prime minister da

breaking news from iag. we will certainly return to our top story. let's get to iag.he adjusted operating loss, no surprise that we are getting a loss from an operator in the aviation space. full year adjusted operating loss, 4.3 7 billion euros against an estimated loss of 4.43. that's a bit better than expected. it is not providing -- this business is not going to provide profit guidance for 2021 at this stage. perhaps they just lack of visibility. we know the ongoing conversations about opening up various european economies, which will be so crucial to the iag story. they are giving us revenue numbers as well. passenger capacity plans for the first quarter of 2021 are around 20% of 2019. that gives you a sense of how much smaller this operation is compared to pre-pandemic. that is the corporate story when it comes to iag. we have seen a pickup in bookings, notified by the markets to competitors of iag. we have seen a pickup in bookings for european aviation. let's get to these markets. this is what futures look like right now, down by 1.6% on euro stoxx 50 futures.

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

we also get numbers out of iag as well.n, prime minister sanchez is expected to name his cabinet. the brexite u.k., deal law proceeds to its third reading in the house of commons, this time seemingly with a chance of passing. later in the u.s., the fed vice chairman speaks to the council on foreign relations in new york, and st. louis fed president james bullard speaks to the wisconsin bankers association in madison. to -- oh, all right, i will tell you more about exit. boris johnson and ursula von der leyen set out rival red lines for their vision of a post-brexit deal. said britain will not stay aligned to eu deals, which i feel like was the point of the whole thing. saying it der leyen will be impossible to get a full deal by johnson's end of year deadline. redlines have been set. aside from those that are perfectly obvious and that we already know about, what are they? right.that's they are obvious, but it is significant that ursula von der leyen and her first trip to london, first time she met with the prime minister s

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

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

iag getting a new shareholder.r airways. >> how jack ma lost $1.5 billion in a single day. ♪ >> time for today's company news. it has been announced that qatar airways has bought a stake in iag. the say they are delighted to have them as a shareholder. jack ma is no longer the richest person in china. his fortune fell after alibaba shares sunk on missed estimates. he is now only worth $26 billion. shake shack has raised 26 -- money in their initial public offering. that is according to a public statement. they boast a valuation of $746 million. two former traders have been charged with allegedly cheating their employers. they worked at hsbc and deutsche bank. they used the banks accounts to get preferential rates for themselves. >> russia could be facing further sanctions from the eu and u.s.. moscow appears unmoved as the conflict intensifies in the ukraine. let's get more from the senior oracle analyst. always great to get -- political analyst. the rebels are pushing towards crimea. putin seems unmoved. europe ha

also, the economic environment is a bit of a concern for iag.ve people concerned about global growth outlook, demand outlook, and we certainly saw weakness in the cargo numbers in this earnings report. guy: and they just launched their new business class seats as well. emma, thank you very much indeed. vonnie: it is time for the latest bloomberg business flash now, a look at some of the biggest business stories in the news right now. -- secondpital quarter withdrawals of 849 million dollars, bringing assets below $10 billion for the first if -- atears, at talks och-ziff. alphabet's google is trying to fend off more scrutiny. it will require competitors to enginesave its search included on android devices. a deall soup has inked to sell international operations to kkr. deal completesn the asset sale plan announced last august. the company trying to pare down debt. that is your latest bloomberg business flash. still ahead, rounding out a big week dominated by central banks and trade headlines, we are speaking with david riley, riley, asset bluebay

most 10% loss for iag. air france down 7%. down almost 10% and ryanair seeing losses of close to 8% in the session. ruining us now is our transport industry reporter. -- joining us now is our transport industry reporter. as we look ahead to what many would have hoped in the industry would've been a decent season for the airline industry. >> good morning. for the airline industry, this is a double blow. we have seen the likes of the airline industry having to face lockdowns across europe in places like austria and now, with this south african lockdown and also the travel ban, you basically. a 1-2 punch for the airline industry. it was really hoping to recover from the pandemic. we are still not out of the woods with delta. travel was just beginning to start again and this will come as a blow just as they are getting restarted. francine: i have to say, a 20% move for iag is pretty punchy. what are the airlines saying? is this the worst case scenario? >> i think it is a case of that because the airline industry is saying that it

and max confidence, iag agrees to buy boeing jets. would get on board one tomorrow. good morning, and welcome to "bloomberg markets." i am here for the ecb forum alongside anna edwards in london. anna: the picture looks a little clearer today, maybe that is central banking policy and the view behind you. but how are the markets? we are divided on the stoxx 600, not going anywhere fast as we wait for the fed. fairly evenly divided in terms of the spread of moves to the up and down some. -- still tronic moving higher, a little bit of a bounce and a positive note for morgan stanley on some businesses in the chip sector. cyb g up by 3.7%. 3.7%.g up by having a bit of a rebranding day. , another one to watch in the chip sector. let's have a look at the downside. we have got a food and drug retailing business in belgium down by 8.3%. the are guiding lower on business. this is a stock that has been in focus, down by 2.7%, as a result of the talk of rent controls in berlin. on them.aiting let's get a first word news update. may impose sanctio

, 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

we are looking at iag.y of british airlines falling -- british airways falling. emma chandra is here with more. emma: pilots striking for two to scrapforced ba almost their entire timetable, losing more than $100 million. the row is overpay. british airways pilots ejecting a pay offer. they want a share of the profits. we are looking here at iag, the parent of ba, how their profits have increased over the years. they came in at 2.5 billion euros in 2018. despite those profit gains, if we switch up the board we should be able to show you how investors have actually soured on iag. we're looking at the stock price over the course of the past year, down some 36%. this is even as analysts like the stock. 70% of them right it a buy. if we switch of the board again, we should be able to see the stoxx 600 travel and leisure index. hat shows how iag languishes at the bottom behind a number of other companies. the concern among investors looking not to be strike action, but instead the possibility of a no deal brexit

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

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

iag down 6%.s not possible to give an accurate full-year assessment because of the impact of the coronavirus, and they see weakness in demand. easyjet down 3%, seeing significant demand softening and planning to cancel routes. anna: the travel and leisure sector taking the brunt of the losses when it comes to market response and reaction, in european trading. hendersonn of investments is with us. we wonder what other asset classes might be vulnerable. one of my colleagues put out a story, calling it the scariest a chart this week talking about asian high-yield bonds. where are you concerned about positioning ahead of this market? nick: when you have really volatile markets, it has a beraing -- bearing on where you see the most pain. things like high-yield, u.s. equities would be another good example, seeing them losing pretty extended valuations. at a time you are worried about the impact of coronavirus, you think what is most expensive, not where i have the most profits to be taking. you can unde

i was chatting with the ceo of iag about improvement in spain, how they have and make amendments yet on their plan for spain but they are looking at doing so. something that willie walsh has never really shied away from. and if thehave means opportunity presents itself, then absolutely. ,> so you have spoken to iag lufthansa, anybody else you have been speaking to? >> some people are more chatty than others. i just chatted with tim clark, the ceo of emirates. bullish as ever. this is an airline that seems to be taking over the world. i asked about a potential -- he said that is an anathema to their model. of course, they have very ambitious plans but he doesn't keep them awake at night because they delivered on their plans and their ambitious targets in the past. they intend to keep on doing so. everyone just kind of milling around. we will be speaking with the head of air france later as well. qatar hasn't been as chatty. he just held a press conference alongside tony tyler. a lot of questions as well about potential tracking in the wake of the disappearance of the malaysian airline

iag reported a jump in profit in the second quarter.erry lundgren joins us now for a look behind the numbers. from air france and lufthansa, i might have expected something similar here. >> analysts and investors were wondering if we would hear something similar from iag. i spoke to willie walsh earlier this morning and he sounded pleased with himself over these numbers. all three units profitable. generally, things going very well in spain. they announced that iberia is getting 18 planes. rings are going very well for them, which is a big success. >> let's talk about the overcapacity in the transatlantic market. any concerns on that? >> this is an area that other airlines have flag. said that there might have been a little bit of greediness. they are being very selective on their routes. the group as a whole is trimming capacity by about 3%. he was saying that is en route for extra flights going at this point. on transatlantic, he says it is choosing the right routes. he wasn't being specific about the new places they were flying. he s

to iag. euro selloff comes as an extra cash in stocks. we are in dublin with the latest. what did iag give ireland that suddenly prompted this decision to approve the sale? >> this has been dragging on for over six months at this point. ireland is an island nation. therefore, connectivity is an important part of our strategy. when iag first made a bid to guarantee the routes between london and dublin for five years we yesterday learned that they had increased that guarantee to seven years or at least seven years. they also gave the government power over the heathrow slots. that gave the government to say, -- government the comfort to say, we are ok with this deal. caroline: the next six months what happens? dar thea:a: some significant news this morning. there are six or seven members of the labour party, they have always been against it, but we learned they are going to back the deal. that is a significant development. willy welch is going to be in town today. he has a press conference at 11

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

iag as well. difficult.ith their balance sheet right now. 2023 -- easyjet could be one of those as well. we need to see those numbers coming back in the industry. people like lufthansa and air france selling off bits of their fleet easily. guy: to your point about the legacy carriers out of continental europe, i am struggling to see where the acquirers come from. why would -- ryanair i cannot see michael o'leary being interested in anything other than organic growth. easyjet will see what johann does. iag, maybe. there does seem to be the lack of acquirers at strong companies. why don't they wait for the capacity to come out of the market and take advantage of it? luke: ryanair has quietly done a bit of m&a. it has not been a particularly successful acquisition. if an opportunity comes up they will not stand by and let it happen, especially if there happens to be a boeing fleet, which is what ryanair is through and through. it has grown into the 747 and they have big orders for the 747 max. if they can get s

let's see what it begins to cost iag.y morning, ongoing, although they are getting things back to normal. .att: let's talk u.k. politics as we get closer and closer, polls in the u.k. are tighter ahead of the election. it could mean a period of turbulence for the pound sterling. it's recovering some of its losses this morning after a fall on friday, showing the conservative lead over labor has narrowed. last week was the worst week for the currency this year. stay with us -- still with us, vincent -- does this narrowing of the polls give you pause? what do you expect for the pound going forward, other than uncertainty and volatility? >> well, we are sure of the pound at the moment. this gives us an idea of what we expect, as long as the holes in the election gives victory to the conservative party. that's the most likely outcome going forward. obviously ag-term, strong conservative property means a hard brexit, which is something that in the midterm could weigh on the pound. that brexit ise a huge frustration in europe. w

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

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

looks like the market is ignoring iag. the market seems to think norwegian is back.side, down more than 13%. this swedish company deals with advanced measurement technology. they were out with a profit warning. they are citing trade tensions and weaker development in china. they will be cutting jobs. to the upside, osram. 3.4board has approved that billion euro bid from bain and crl ityle. bain and carlyle. china is sticking to its demand that the u.s. lift all tariffs as a condition for any trade deal. francine lacqua spoke to standard chartered's chief executive. ofi think the period , whiched globalization is part of what characterized the early part of the last decade, was very good for global growth, very good for a global bank like standard chartered. it was very good for its subset of the population and left another subset of the population behind, in particular, middle-class in developed countries. the political will to go back to unbridled globalization seems to have passed. i equate a national -- natural extension of the view that the population my small co

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

this is iag. us, it will bed tough out there.ped some of the losses, but he is with our very own guy johnson in london at the aviation festival, about to have that conversation. take it away, guy. guy: thank you, manus. let's figure out exactly what is going on with the bin is. saidafter the brexit, you you had to reset your guidelines. the data coming out of the u.k. looks solid. did you jump too soon? >> we didn't. we have got a large sterling revenue profit base. we are now translating that with a much lower rate of exchange. we had a translation impact, which was immediate and could not be reversed. we had a transaction impact. the pound has weakened against the dollar. the euro has weakened against the dollar. we have seen softening of u.k. the productivity in the lead up to the vote, as corporate try to anticipate what that meant for them. these were three immediate issues we had recognized that could not be overcome in the short-term. migrating? > rate >> no, it is actually very different. historically, we can measure thin

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

the big story, qatar airways taking that 9.9% stake in iag.will make them the company's largest shareholder. i want to show you what athens is doing. stocks in athens, a little bit higher after the brutal selloff in the first three days of this week. the banks got pummeled. alpha bank up by 7%. they are basically penny stocks jumping up and down. i'm going to talk to you about greek government debt in about an hour. stay tuned for that. yields are lower. off by 34% -- 34 basis points, rather. in a little bit of time, we get a big piece of data. euro-dollar, lower. 1.1321 is where we are right now. inflation data expected at -0.5%, the lowest since the summer of 2009. elsewhere, dollar-ruble, here is a cross to watch. stronger dollar, weaker ruble. that is a record low for the ruble on a closing basis. 69, approaching 70 ahead of a big central-bank decision at 10:30 u.k. time. rates 17%. i leave you with that. >> bit of a punchy number. jon, we will manage those for you as we work our way through the day. let's turn to attack now. investors che

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

today, iag, it was up more than 2%.pite the second reduction in public guidance since the referendum. it really is a matter of things not being as bad as we originally anticipated it to be. guy: how will the market react when they say they are going to raise the prices? >> it is an interesting dynamic. it is something that was spoken about earlier today on a call. he said there is no chance they would lower prices. that is quite a big benefit for them. potentially raising prices especially on the transatlantic routes which is interesting because there is a heightened competition on the transatlantic these days including the u.s. as well as the norwegian and others. how much are we going to see a change in direction for the u.k. airlines vis-a-vis the rest of europe? weather theve to sterling storm on their own? brexit, things are shaping up to be better than they thought. it is a good question. ba has been quite positive about brexit and the impact on business travelers. i had of the referendum, they were warning that t

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

guy: when i looked at my screen after the pfizer news came out, iag was up 30%. lufthansa was up something similar. all of the entire travel sector was roaring higher. is that indication of the potential that these companies could have, were we to see some positive news being cemented? how much upside could there be in some of these most deep down -- most beaten-down sectors? andrew: i just think it is pretty interesting that if you look at the way the market has been trading up until this point, and i think this is still the case, even as there was supposedly a lot of optimism around the vaccine, if you listen to the news or talk to investors, i thick a lot of investors were very open to the idea that a vaccine would be successful. yet if you look at what was leading the market higher, it was still very recently many companies that benefit from abnormality, that benefit from more restrictive economic activity. is a good step towards this idea that maybe can be more normal. it might be the more cyclical parts of the market where there is more operating leverage,

iag is supportive of a potential merger between american and u.s. airways. that's the top news we're tracking. back to you. >> thank you very much. >> 4:47. good morning again to meteorologist christina loren. great to see you. sounds like another week we're going to enjoy. >> another week, beautiful weather here in the bay area. not too hot f. it's going to be about 92 in livermore you can basically use your intelligence living here for any amount of time it's going to be much cooler toward the coast. but the thing is, you're going to have to deal with breezy to windy conditions. we have a small craft advisory in place. keep that in mind as you head out on the boat. probably not the best day for the boat. 60 in sunnyvale, we're at 57 to start out in san francisco. it's going to be hot inland but not as hot later this week. we have an area of low pressure over the weekend that is now heading out to the north. high pressure is building in from the four corners region. that's going to bring about a significant warm-up through the midsection and end of this wee

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

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

iag is trading higher. i want to talk about iag. it is trading in sympathy with air france.ll say next is more but public service announcement. iag lost a court case in the u.k.. that case was designed to stop its pilots going on strike in august. i know a lot of you spend a lot of time on her planes crisscrossing the atlantic and europe. it looks like iag could be facing stripes. -- stripes -- will be facing strikes. credit suisse is trading higher. that is look at the european close. vonnie: let's have a lacrosse assets. -- major indices fluctuating the major moves are beneath the surface. on fomc day, all eyes are on the 10 year. gold futures down slightly. we also had crude oil inventories, another drop-down that was larger than expected, four times larger. we saw crude oil rise more than 1%. still $58.41. let's get the some of the movers in the stock market. apple is moderating gains. above 5% earlier. analysts are pleased with the quarter even though sales of iphones were at the lowest since 2012. the attention is turning to services and other apps. analysts are lookin

now they have a telephone call right to the heart of iag. no breaking news on the dealmaking. rose came in at 6.5% -- growth came in at six point 5%. this is an expensive shop. i can't afford to go into it. europe is doing well. but america is what disappointed. the big issue is this. japan beat 3.8%. do i have time for a little foreign exchange? these russians are going to tell us where they are with interest rates. we had that conversation this morning. russia doesn't have the ability to move on. you are going to find out what is in the vaults. the swiss franc against the euro since the tumultuous day when they moved away. >> iag is the big story in the stock market. we are looking at gdp out of spain. apparently the relation is not the end of the world. -1.4%. prices forecast to drop by half of 1% last year. the greek prime minister guarantees stability. investors are reassured. yesterday a racing some of the losses earlier in the week. you have the president of the euro group today. what is on the agenda? >> he is going to meet the greek prime minister this afternoon. the

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

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

. -- iag looks to enlarge the group. chanel and louis vuitton was the only luxury brands to increase in value last year. that is according to mill worth brown. vuitton rose 20% while chanel rose 15% to $9 billion. up next with the imf payment deadline looming, greek officials planned to meet with creditors in brussels. francine: welcome back to "the pulse." greek officials plan to meet with creditors in brussels today to secure a deal before the country meets the payment to the imf at the end of next week. for the latest let's go live to hans nichols before he makes his way to dresden. it is not looking very promising. on the boy -- hans boy -- hans: you had a u.s. official overnight saying the secretary of treasury will be warning about contagion and the unpredictability of the global recovery. contrast that with the german view. we just heard from schmidt who is a key advisor to angela merkel and he repeated this argument and has quite a bit of credence. the contagion could be limited. everyone will be arriving later t

iag may be implemented of what is happening elsewhere. kailey: this market has repriced expectations to a significant degree over the last several weeks and it is having to do that even more so today after that inflation data. the preferred inflation gauge came in hot on every metric. headline core year-over-year, all living deliver -- all of the delivering the surprise. the s&p 500 down 1.6%. the nasdaq 100 down about dew points 25 percent. the two year treasury yield up 11 basis points to 4.81. this is the highest we have seen since july of 2007. all of this translating into a stronger dollar. the bloomberg dollar index higher by 0.7% on the day. guy: all of this really maybe has a big geopolitical element to it as well which is why it is worth spending time talking about what is happening in ukraine. this is what is happening in kyiv. a press conference is being held by president zelensky. he is briefing the media right now. he is looking to involve china and india to back his peace plan. we had a proposal from china earlier on. let's

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

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

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

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