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."

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

a big rich brother like iag coming over the hill.'ve learned to respect willie walsh's views, he said a terrific track record and certainly norwegian is a good strategic fit for iag your lufthansa. there are some top edition crossovers in places like spain where iag is very large with iberian wailing and norwegian has a big basis in madrid and barcelona. that would be a challenge. ceo.et: that is ryanair still ahead, trade truce. tensions seem to be easing of it with china. one of the risks -- what other risks should investors keep an eye out for? this is bloomberg. ♪ scarlet: this is "bloomberg markets," i'm scarlet fu. julia: i'm julia chatterley. listts getting a list -- a -- a lift from the trade tension easing. u.k. inflation data to. barton, eatonyana vance management. assuming de-escalation of the tensions between china and the united states, and being optimistic, are you equally optimistic or is it early days? optimistic on are the companies that we own and the prospect of the earnings trajectory, irrespective of the backdrop

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

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

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

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 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

an irish -- lawmakers in ireland approved the sale of the government's 25% stake in aer lingus to iag. iag is the owner of british airways, and as it looks to complete the takeover of aer lingus, one hurdle remains. it still needs to reach an agreement with the remaining big shareholder, ryanair, which holds a 29.8% stake. another billionaire says he is ready to give away more than half his wealth to a good cause. the founder of giovanni yogurt has in estimated wealth of $12.4 billion. he wants to set up an online foundation called tent. turkish born entrepreneur is making it part of the giving pledge created by warren buffett and microsoft founder ill gates. they are asking billion is -- microsoft founder bill gates. they are asking billionaires to give away more in their wills. the former home of the late michael jackson is up for sale. neverland ranch is priced at $100 million. jackson bought it in 1987 for $19.5 million. the property has 22 buildings including a six-bedroom, 1100 square meter home, and two guesthouses. there is a 50 foot movie theater that has a stage with trapdoo

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

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

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

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

alix: we will have guys interview -- guy's interview with the ceo of iag coming up next.is bloomberg. ♪ ♪ ritika: this is "bloomberg markets." coming up, alexis ohanian, red of co-founder -- reddit co-founder. this is bloomberg. ♪ guy: welcome back. we are watching the unfolding events down the road at carb ebay. the bidens and the johnsons standing next to the big g7 banner. we are now starting to get maybe some of the playback coming through from the meeting that is taking place between boris johnson and joe biden. in terms of what these two are saying to each other, clearly i think it is going to be a focus on making sure that this is a success, delivering upon the apparent promise to deliver around one billion vaccines to vaccinate 80% of the population. but a rekindling of the relationship. alix: and also, a big part of that, and i mentioned it earlier , that low hanging fruit has to do with climate. the draft communique seems to be setting some climate financing goals, asking for a new study of the coronavirus and the origins of that. so the stuff that everyone can

airways hastish some iag shareholders.t showing what happened since the crash in ethiopia. this is happening, if you can see it to my don't know what is going on -- there we go. the blue line is boeing. ship rate is down about 11%. there was about a 5% increase off the back of this deal. normally with these airshows, the big deals are announced the first couple of days and we've gotten those out of the way. so what are we seeing so far? angus: the first-day was dominated by airbus, it's in its own backyard. it came out with the 13 million u.s. dollars that first day from boeing. now they are premature at parity. -- pretty much at parity. this was unexpected. boeing also nabbed a 20 dream line order from korean airlines. it is right back in the mix. the other thing to say on the max, they are one of the main -- one of the main questions is whether customers will be happy to fly in the max. the airline chief executives we are spoken to in recent weeks have said one of the main challenges is convincing the public it is a safe

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 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

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

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

the british airways owner iag has posted record profits of $1.8 billion forjuly to september.ted capacity by almost 18% with the delivery of 20 new aircraft. iag says its forward bookings are looking good, but that it's mindful that economic and geopolitical uncertainties could affect the rest of this year. us chip—maker intel reported results that beat wall street expectations for the july to september quarter. despite its overall revenue declining about 8% the same period a year ago, shares rose about 6% in late trading. the company also said it is on track to catch up with chipmaking rival tsmc in an increasingly competitive industry. american car—maker ford also reported its earnings. but unlike intel, it missed analysts expectations and saw shares falling about 3% in after—hours trading. the us auto sector is also in a state of flux — with ongoing worker strikes that have lasted six weeks, demanding fair pay and better benefits. the company said the strikes will likely reflect in the results for the next quarter. stay in touch with the @bbcbusiness team and me on socials,

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

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'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

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

iag, its shares are down now over 20% just today.e us central bank to cut rates and other measures by central banks, the markets are heading in one direction. do get in touch with us. we will be back tomorrow with plenty more. thanks for being with us. see you soon, goodbye. higher pressure is building from the south. not as straightforward as this area of high pressure giving dry weather because there are weather fronts about and we will still have outbreaks of rain particularly today across scotland and northern ireland, spreading into the afternoon. still some sunshine elsewhere. england and wales, starting with cloud, that will melt away. plenty of dry and sunny weather this afternoon. maximum temperatures, 13. 10 celsius further north and west. tonight, the rain will move south and east but will break out. patchy rain will spread into england and wales. showers behind it. temperatures are staying above freezing, a frost—free night to ta ke above freezing, a frost—free night to take us into tuesday morning. for england and well,

it now owns a little more than 20% of iag. iag's ceo is leaving next month. iag also owns iberia.nes, boeing has another problem with the 737 max. inspectors have discovered rags and tools left in the fuel tanks of newly built planes. boeing is now looking at more than 400 of the jets that have been stored since the mac was grounded almost a year ago. the gun will give northrop grumman up to $14 billion in research -- the pentagon will give northrop grumman up to $14 billion in research in an effort to modernize the u.s.'s nuclear weapons triad. that is your latest bloomberg business flash. let's get a check on u.s. markets. 0.3%, but thedown market is higher. the nasdaq is storming ahead, up 0.8%. guy: we are just off session highs here in europe. as you can see, we are up on the ftse 100. we are seeing the likes of hsbc bouncing back. the dax up 0.6%. cac 40 in paris up 0.8%. we have a $1.07 handle on euro-dollar. up next, we are counting you down to the european close. this is bloomberg. ♪ guy: stocks rise as china considers further economic stimulus, including a possible takeo

iag's ceo also appearing today before parliament.e told mp's that the news was a surprise that the eu would now have to look at again for any plans for ramping up. period coming into going tois definitely make it worse. there's nothing positive in anything i hear from the prime minister. we had been planning to resume on a pretty significant basis our plans for july. i think we will have to review that. the ceo of iag, which owns british airways, among other carriers. let's get a sense of what this means now. we are joined by robert briggs, policy and public affairs director at airlines u.k., the industry body for u.k. airlines. it does seem as if the government's announcement over the last 24 hours is going to have a significant impact on any reopening of u.k. airlines. does this effectively end the prospect of a summer recovery for those carriers? robert: hi. it is absolutely a blow. i think as we are starting to see other parts of the economy open up, we are seeing restrictions affect the u.k. airlines. many think we are now more

iag, owner of iberia airways, is trading down sharply today.expecting to see a further lockdown. the eu talking about negative covid tests being revived. the u.k. is expected to tighten its rules of entry as well. all that being priced into iag and other stocks. they are down 7.32%. alix: i want to bring in mark manduca. you have france that could go into a lockdown and whether the u.k. will lift lockdown. how much of this is priced into the travel guide? mark: you summed it up beautifully. borders are beginning to close and we had israel and scandinavia offering their own versions of events. needless to say u.k., france, neighbors do want to be left behind. it appears that this notion of bed and breakfasting rivals, at their own cost by the way, is the australian style mechanism. the first question is in terms of what is priced in, is this event possible? the clear functionality issues around this. if you take 8000, 7 thousand arrivals into the u.k., we are we going to find beds for these people? if you have ever taken one of these tests, it i

iag is probably best positioned.have made the most progress and probably have the least execution risks left. >> we will see you after those are released in about 27 minutes. angela merkel began her speech to the british parliament by telling the audience that she has come to disappoint them. should not weigh in on the debate over u.k. and the eu membership, she said the country shared responsibility to make europe stronger and more competitive. were the comments well received by lawmakers? certainly those under expecting angela merkel to arrive in london with a list of concessions that she was ready to give to the u.k.. they would certainly have been disappointed. she did have one message that .hey could've agreed with >> we need a strong united kingdom with a strong voice inside of the european union. we have that, we will be able to make the necessary changes for the benefit of all. her sameere you have something which is actually on the platform of all three major political parties. that the european union could

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

we spoke with iag's ceo after the deal was announced. for iag, it frees up capital.then deploy that to build and expand in asia and markets like china, malaysia, and thailand. olivia: bloombergs david ingles reporting from hong kong. now here are a some of the top stories crossing the bloomberg terminal. the golden state warriors have two shots to win the nba finals, but they want to get the job done this time. they hold a 3-2 lead going into tonight in cleveland. the meantime, lebron james says he will do what he -- whatever you can to get a divisive -- decisive victory. the chicago blackhawks won its third series title in six seasons. thean keith scored one of goals and was named the plant m.v.p.. the two biggest makers of videogame consoles are squaring off at the e3 convention. microsoft previewed the next game in his halo franchise and sony showed clips in new games and final fantasy. u.s. forcesory for in yemen. al qaeda's number two leader was killed in a drone strike overnight. death iswuhayshi's describe as a significant blow. it is not enough to stabilize t

i'm thinking of carriers like iag.y work very hard after the financial crisis to put up balance sheet in place that could survive anything that is now being tested. strength actually work against you in that scenario? mark: it is not just a little more money. you were talking about 2.75 billion. this is significant dilution. i love your point. the reality is, a lot of governments and their respective airlines are going to be looking at the names that have the money , that have the ability to pay for. that word we were talking about, esg, carbon credits. if governments want to raise capital, they are not going to look to their own because they own those entities. the're going to look to last remaining areas of profitability. these are the people who are going to pay for the new escrow accounting roles these the people that are going to have to pay for the carbon credits that are associated with etf schemes. ryanair is going to be a target in the medium-term. when it comes to government on airlines. i think that is what

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 moving lower. positive comments from a lot of airline executives. iag more pessimistic.sh owner losing ground. only 45% is what they see capacity compared to 20%. iliad, this is a buyout, one of their billionaire owners that owns 71% of the stop offering to buy them out at a 60% premium. though shares up about what the premium is, 61%. l'oreal, such a muted movement despite the fact they had earnings out today. organic sales beat expectations. they gain share in all geography but rbc saying that is not enough to boost shares. it feels wrong to say, but this is not the impressive quarter we have come to expect from l'oreal. alix: interesting, particularly if things reopen and we buy clothes rather than face cream again, what does that mean? let's get into that. bloomberg's carolyn to non-spoke to l'oreal ceo following the earnings. >> in countries where the lockdown and the easing, whether it is the usa, i'm thinking of the euro or china last year, the appetite bounces back immediately. makeup is back. it is not back to 2019 levels. you could see the say -- you could say

the iag ceo will leave next month.ns iberia and aer lingus amongst other airline brands. staying in the aviation sector, boeing has another problem with the 737 max. ragsctors have discovered and tools left in the fuel tanks of newly built planes. the boeing is now looking at more than 400 of the jets. they have since been stored since the max was grounded almost a year ago. will give northrop grumman up to $13 billion and richard spending through 2025. this is part of a trillion dollar effort to modernize the landsea, air, and nuclear weapons triad. and that is your bloomberg business flash. vonnie: coming up, it is our global battle of the charts. this is bloomberg. ♪ everyone uses their phone differently. that's why xfinity mobile lets you design your own data. you can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. all with millions of secure wifi hotspots and the best lte everywhere else. it's a different kind of wireless network, designed to save you money. s

iag trading down 1.6%. the airline stocks had a solid week.z, theoday is alex man who has been sharing british airways, part of iag, will be stepping down. remember william walsh, who has put them in that job, has recently stepped down. iag trading at 101. allegro, this is an incredible story. finishing almost exactly on 70. we are trading up 62.79%. this is the commerce platform out of poland and the stock is searching much more than a lot of people anticipated. a very positive first day of trading from a price point of view. can definitely say positive on that one. for more on the debut of allegro is it ceo, francois nuyts joining us from warsaw. congratulations on this strong trading debut. you are clearly reaping the benefits of this e-commerce world, spurred in large part by the pandemic. how long can your new investors expect this to continue? francois: thank you. we are focused on what pleases our customers, and the kind of company that allegro is normally exists in other continents. we were born 20 years ago. you normally see that in t

i am interested we are seeing iag up today.oing to be the year we finally see this migration from short-haul recovery to the long-haul recovery? andrew: the transatlantic finally reopened in november. that was a superb christmas of trading -- there seems to be a lot of optimism in the industry there will be a solid summer trade on the north atlantic. we will have to wait and see if we get a clear path and a continued recovery from the virus and normalizing of travel rules. than the transatlantic should be strong. we end up continuing to wait for asia, the reopening of europe and asia. that is not great. in the context of iag that is not relevant. alix: guy and i were talking before that it seems like when the sun shines, summer you will book, winter do not bother booking because there'll be new waves, potential travel restrictions. if we go in waves like this, how to airlines manage that? andrew: if we are going to continue having persistent uncertainty, airlines will struggle. how do you plan your fleet sizes and crew? if you

iag slashing fourth quarter capacity to conserve cash as fresh travel restrictions continue to hit demand. the market is softer when it comes to equities, down by 0.3%. tech is the lead losing sector in europe. most sectors are down, but travel and leisure is the most positive sector. down at the bottom of that very tight range we have been occupying, the s&p down as well, down 0.1%. a slew of earnings coming at us from both sides of the atlantic. euro-dollar softening up, so we are seeing some dollar strength. yesterday was quite a big session, and we did see a lot of dollar weakness. 7000. copper at german 10 year yield, we are seeing yields picking up, as you can see, a little bit -- sorry, prices going up, yields going down. what we continue to see is a situation where we are seeing the spread across the atlantic widening out. what is interesting is we are seeing general euro strength on the back of that. you wonder whether or not at some point, that starts to play into that story. alix: let's wrap this all together on a macro sense. on the one hand, you have stimulus hopes in the u.s

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

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

it is interesting that iag is not on that list.ing into this with one of the strongest balance sheets. to alex cruz,king who runs british airways, to ensure the balance sheet was in a position that it could withstand a certificate source of stress such as what we are experiencing at the moment. it had been a major effort ever since the financial crisis. effectively, that was job number one. so the balance sheet may be looking a little bit better than some of their peers, according to ehrenberg. in terms of what we need to know, let's find out about the virus. let's get an update with viviana hurtado. begin with want to dr. anthony fauci revising downward u.s. fatalities from up to 200,000 to around 60,000, but this is this the curve keeps flattening in new york, the u.s. epicenter, and social distancing continues to be practiced across the nation. still, in the u.s., cases are accelerating, and is on track to overtake italy as the world epicenter of covid-19 mortality. some nations globally reporting a spike. we are talking about i

now qatar owns a piece of iag. actually stopped being a member of the association of european airlines. and they said that is because they did not agree with some of the other members. so they are vocally saying, you know what? if you cannot beat them, join them. guy: presumably this is going to dominate. kari: it does seem likely. it is interesting to put the gulf in context. 60% of the world population or the flying population lives within six flying hours of the gulf. this is a dilemma that is here to stay. you can see why the american airlines are so concerned about this. the hub model the gulf has created and what they are doing is incredibly innovative. it is totally new. who was the last group of airlines that did this? the low cost carriers. now ryanair, easyjet, southwest are eating the legacy lunch. francine: thank you so much. that brings us to today's twitter question. we want to know which region has the best airlines. ♪ [baseball crowd noise] ♪ ♪ [x1 chime] ♪ ♪ [crowd cheers] oh! i can't believe it! [

iag the new york we had pt on fox. so it's basically a martial art based on. a full house. this dichotomy this nature. i don't rule rule. you use you ch. the us. eye. while i did switch a week that the deal then we cross over from suzuki. p s export as corrupt examine state of the art technology from ford. and introduce the mercedes and sixty three amg. premier model has been added to the head of mercedes to a curious long range

iag, let's talk about what has been happening with the allied sector.se are the days when u.k. -- the u.k. has imposed its quarantine rules. the vaccination program has been moving on, we have seen the airlines traveling strongly today. iag, it is the rest of the sector, broadly as well, texas is the story all the way across europe. all of the names moving sharply. 6.62% to the upside. the director of research and managing director covers airlines and he joins us now. mark, i would have thought with the backdrop of government sounding really cautious at the moment, trying to dissuade people from traveling that airlines would continue to have a tough time. they are not. why? guy: it is a whisk on day. let's be specific. they have been talking about four things in our conversations. first, a potential for max subsidization this summer. albeit, you and i know that physical activity of doing one of these sessions is an uncomfortable exercise. second, an acceleration in vaccine rollouts, not just in the u.k. but also in continental europe. third, a lot of ta

iag has had a good week. wizz has had a good week.ot of european airlines making more positive news. the travel and leisure sector has been in outperformer. a return to travel, returned to people moving around the world. potentially that should be good for the luxury sector. that is not what the numbers are showing this week. kriti: let's stick with that topic. the growth in the luxury sector was late to the decline in the travel sector. he spoke to bloomberg tv earlier today. >> luxury goods overall has very strong demand before the pandemic. with the pandemic it grew because there was a big trend before it an experiential luxury , spending for travel, restaurants, hotels, and this was heavily impacted and is still very low. that is back -- not the level of 2019 and certainly not to people have been. the economy is doing well. the purchasing power is still high, especially in the two strongest markets for luxury goods, which are the united states and china. people have a strong appeal for spending on the luxury goods. if we look at w

it's popular, isn't it, because the iag group, which owns aer lingus, british airways and iberia, boughtuff in spain recently? but it is expensive, isn't it? it is expensive. the price will come down over time, but it is significantly more expensive than regular fuel, and it is the closest thing at the moment that the airline industry has to a silver bullet for reducing its emissions. but it's a huge challenge to expect that we will have enough in time. this year for sustainable aviation fuel accounted for about 0.5% of all of the aviation fuel. it's tiny. and the goal, for example, in the eu is to reach 70% by 2050. so there's a huge scale up needed. so in the aviation industry, briefly, what else are the silver bullets that can reach net—zero, virgin pledging to reach net zero by 2050. the sustainable aviation fuel is the closest thing we have. the big challenge for the industry is its continuing to grow all the time, so it's chasing a moving target to a large extent. we can expect electric aircraft, hydrogen, more efficient operations and so on. but the saf is going to be the the bigg