around how iag as a group would have performed in that half year?e good. in the context of the whole industry and they are not the only ones in this situation. ryanair last week, they had a 50% pay cut. lufthansa... we are in downward circle at the moment. we have had a really good run in terms of performance from many airlines and now what we are seeing is everything conspiring against them. a lot of cost in dollars for iag and ba which has revenue in stirling and that has devalued. anecdotally, you know, in terms of friends family colleagues, i get the sense that people are flying more, especially shorthaul, than they used to ten years ago. and yet the airlines are still facing these pressures, presumably because these pressures, presumably because the margins become so tight and the cost becomes increasingly burdensome. capacity this summer from the uk has been up by i.5%. so more and more people are travelling but the reality is we have too much capacity in the market and that means people are getting really good fa res means people are getting

hearings in my role as the iag council chair on issues that affect the iag community. >> speaking of council chair. back in 2008, the government authorized the council of the inspectors general on integrity and efficiency. first, why did you need this? i would assume that's what you're doing anyway. and what does it mean? whip are you first chair on this? >> okay, well, as you point out in 2008, congress statutorily created the council. prior to that time, there was no statutorily established entity. over the years as the ig community evolved, various presidents had created councils -- one counsel for the presidential appointed igs and one for the agency heads. over the years we came together as a community to work on issues of common interest. at the time of 2008 legislation, there was a view that it would make sense first to merge the two councils together so we'd have all igs together in one council. secondly to deal with the issue of providing training to our staff, which was an ongoing and open issue. and third to encourage us to work properly with iags on issues that span agenc

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

iag, 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 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

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'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

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

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

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

iag has managed to conclude a deal with its pilot force. they have some small, short strikes, but the pilots ultimately came to the table. they reached an acceptable position to cut costs to improve productivity which bodes well for the future of iag as a group. >> absolutely. europe's main carriers are recovering. ebola continues to be a massive issue for airlines globally. what lessons can we learn from past health care as to how significant this effect will be on the airline? >> i think any understand of this kind has to be managed day-to-day as it evolves. we've seen, of course, share prices hit. that's perhaps a bit of a panic reaction, as you rightly say. we have on one hand a big xwarchl of a health scare with the -- asia, airlines in that part of the world were badly hit. other than, we had, for example, swine flu examine a lot of worries were there. it tund out not to be a big hit. airlines are not usually massively exposed to these markets. we've seen some flights juan from flights in west africa, already. >> and, of course, the b

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

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

one of the big stocks in the sector, iag.hat we heard this morning, alex cruise, the ceo since 2016 has been replaced by sean doyle who is the boss. all of this as british airways looks to cut 13,000 jobs and is embroiled in a dispute with the union but it does mark a big change since iag took the helm so he is putting his stamp on the business but the stock you can see down 1.25% as markets focus very much around the second wave of travel restrictions back to you in the studio. new this morning, the ceo of regeneron says the companies promising treatment for covid-19 must be rationed he says there's not enough of the experimental antibody cocktail that president trump received to treat the many americans that may need it there's currently doses for just around 50,000 patients the ceo says president trump's case is merely a case of one and the treatment is still -- it will need to be tested more for its efficacy before it's really known whether or not it can be deployed out more broadly. you can see regeneron shares up in the

the iag will also lead the way in growing efforts with nations which share our understanding of the iranian threat. president trump is making iran strategy a true multinational undertaking and the iran action group will be key to further progress in that regard. i'm also announcing brian hook will lead the iran action group with a formal title of special representative for iran. brian has served as the director of policy planning here since february of 2017, and he's worked tirelessly to enact president trump's foreign policy priorities across multiple domains. brian's diplomatic expertise and broad experience with iran policy makes him an outstanding choice to lead the state department iran action group. since the president's decision to withdraw from the iran deal, brian has played an important role in shaping our strategy of maximum diplomatic and economic pressure. we are going to continue to rely on him and his team to lead our efforts to counter the iran regime's activity, to support iranian voices and to galvanize international support for our efforts. with that, i would like to intr

american airlines a couple of us ago, qatar has states in iag. -- qatar has stakes in iag. common thing. i suppose what they would want to do is hope to solve several problems at once. qatar is diplomatically in a spot at the moment, just as qatar airways is in a spot. you can solve several problems. you could try and break some of the unity of the u.s. airlines against gulf carries. -- gulf carriers. you can get a voice in washington to talk about the visa restrictions that are a problems were gulf carriers and buff up the image of qatar a bit. >> is it going to work? david: ha! i suspect not. you saw those comments from doug parker. they are pretty tough. especially the sort of comments for a potential major shareholder. they've misread the mood. american airlines does not want to attract a twitter thunderbolt from donald trump. it doesn't want to attract from -- opposition from its pilots union. and it's benefiting from growth. we had some air traffic control privatization which is in the form that u.s. airlines wants. thos laptop and visa bans, are the same things that

its parent company iag announced the planned job cuts as it revealed that revenues had plunged 13% inery of passenger numbers to levels seen last year will take years. sally gethin is an aviation commentator and is here in london. good to have you with us. first, what is your reaction to the news today that british airways are to make 12,000 workers redundant? for me it is not about out of the blue. the same is true for anybody in the airline industry. this is a terrible situation for all the staff obviously but in fact it is going to parfor obviously but in fact it is going to par for the course moving forward for all airlines around the world. and there were going to be morejob losses and more airlines will go under. do you think it was action they were about to take too soon really given the fact that we don't know how this pandemic is going to play out? in particular how things may indeed get to a certain level of normality in the future to do with the aviation sector and how passengers are travelling around the world. they are tightening their bell and looking ahead and they can

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

what's iag to make of it all? >> i think iag in this case, they'll have to contend with the fact that b.a. unions will feel they've got unfinished business with him. he's obviously gone through a painful round of restructuring with them previously. now the pilots are getting involved both on the b.a. side as well as the iberia side. it's going to get messy i suspect. >> at what point does it go from hazard of the job to something more significant? shares up .2%, 11% over the last seven days. >> yes, i suspect it's going to -- the numbers are painful. they've been taken i think in the order of $4 million losses a day with a series of strikes. it will hurt the bottom line for the business. i think willie walsh has to toughen up. he's said he's going to go after them on transformation. >> the workers argue they put forward an option that really should have considered or taken at the time that forced strikes that are losing him all this money are. they right, or what's he to do in this situation? >> i think it's diffi

iag is trying something interesting.ing at norwegian but pursuing this low-cost model expanding.ngus and it is trying to play that long game and see where it goes. guy: and we still have to think about i. and the impact brexit could have on it. -- we have run out of time. it's nice to see you. then cap from bloomberg news. let's check on the markets. spiking as we have seen over the past hour. .here has been a swing in wti something is going on. it was swamped -- stalling at the 47 level. and as you can see we are trading just out of the moment. more on the markets next, this is bloomberg. ♪ guy: live from london, i'm guy johnson. vonnie: and in new york i am vonnie quinn. this is bloomberg markets. guy: it's time for futures in focus column a big move in oil over the next hour. ira epstein is joining us from cme. we have a 6% swing in the last hour, any ideas? >> i think it's a combination of people coming back from holiday, they are not all back, it's the middle of the week, i think we are at the port where we will --

am, what is the story with iag?esults look about what you would expect for european airline in the first quarter. some pressure is on the fed because competition is very stiff. you have been seeing impact of higher oil prices. broadly, this looks like what analysts were expecting from iag. it may be, as well as their hairs -- shares hitting a low, there may be a slightly positive open this morning. matt: we will watch that. dani, what do you have? dani: shares are likely to decline today. they saw another trading slump for the first quarter and has the worst fixed income trading revenue of all european peers. it plunged 34%, 20 percentage points more than the average among analysts. this is going to be especially challenging for the ceo, who has only been in the job about a year. right, thanks very much for joining us. get all the latest stocks stories from the equity team on your bloomberg terminal and via the bloomberg mobile app. let's get the bloomberg business flash from debra mao in hong kong. debra: matt, occ

. >> it could be in big trouble if iag fails. the second thought was, i think it is bad for the country. if america can show they can fix business problems the right way. it would be bad for meritocracy and capitalism. >> aig had just received one of the biggest government bailouts in history. $182 billion in exchange for a stake in the company. if you thought the company would survive. -- few thought the company would survive. he started making headlines, floating conventions including going on vacation. >> grandpa is on big trouble because he left his job to go on vacation after two weeks. >> you did a lot of things of that time. can i name some of them? you said you had bigger balls than the government. >> that was in a private meeting. what i said was, i know they can come after us. the fact is, i'm not worried about the size of mine. the government is not going to tell me how to run this company. i am going to tell you how to run this company. that is what they hired me for. >> when you except that the job as ceo, you said,

iag trading strongly. the vaccine will have a material impact on those businesses and our ability to travel. the euro up above 1.14. we do have the ecb coming up tomorrow. let's talk about what we have coming up for the rest of the hour. the chairman and ceo of train technologies -- trane technologies, they do hvac. we will talk about how you recondition all of the air-conditioning units that we have to allow us to basically eat and drink inside. a really important conversation as we think what will happen as we approach the autumn and fall. what will happen to the service side of the economy. the banks are in big focus. 93%man sachs reporting a surge in revenue on the stocks and bond trading in the second quarter. highlights is our bloomberg wall street reporter. >> they have a lot of questions about the m&a environment. goldman the lead m&a advisor. the backlogn saying is higher, but he expects activity to continue in the next two to four quarters. , but we will see them come back. there are a lot of unc

is mullingt iag closing four spanish basis.'s budget airline and we heard about a reimposition of travelers from spain. thisoke to the ryanair cfo hour, first-quarter loss coming and85.1 million euros wasn't quite as big a loss as expected but the biggest fear is the second wave and sap, raising its 2020 free cash flow forecast to about 4 billion euros. it plans to spin off its qualtrics u.s. ipo but keep a majority stake. the ceo telling us it will compete with salesforce post the ipo.tricks --qualtrics the european open is next and it looks positive just to buy future -- judging by futures. this is bloomberg. ♪ >> welcome to "bloomberg market: the european open." in londonie hordern aside yousef gamal el-din in dubai. markets, the dollar continues its decline but bullish cases for the euro are growing, futures on the continent point higher and the cash trade is under an hour away. here are your top headlines. u.s.-china

iag tried to buy the wheaton, abandoned that effort in january.ny, a sign uncertainty is weighing on global manufacturing. factory orders fell more than expected in may, slid 2.2% and was down almost 9%. the biggest drops, sport orders and investment goods. bmw is looking for a new ceo. harald kruger will be leaving in the midst of weaker profits and questions about his dealing with new technologies. he told the board that he would not seek a second term. he has been in charge since 2015 and been criticized for cutting profits and also over an electric car plan that seemed a little too tentative. your bloomberg business flash. let us stay in the car sector. bmw loses a ceo. i spoke to jaguar and land rover's ceo about how he believes the future of smart mobility will be very much electric. take a listen. -- jaguar and --d rover are british bands brands and they have outstanding vehicles. employees,y of our localized in the u.k., very creative engineering -- engineers. ofdeliver this combination bridges design and engineering integrity, and that is

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

iag doing a little bit better today. reportedly are pushing back against the government in the u.k. it can fire all of its pilots as a result. up 1.1% today as we are likely to see an acceleration in some of the changes at ridge petroleum. -- at british petroleum. alix: market still seem to ignore the economic data. and the economic outlook. world bank is out with part two of its economic prospects report and is forecasting a 5.2% contraction in gdp this year, the deepest recession in eight decades and risks tipping millions of people into poverty. kose,g us is ayhan director of a group at the world bank. his team wrote the report. pick three of your highlights you think it is important for audience to know when it comes to moving out of the covid pandemic. ayhan: the first highlight, we are expecting a historical contraction in global gdp. not just the worst episode since the second world war. worst episodeth since 1870. second, wherever you look, you see the contractions in economies. economiesg markets will contract 2.6% this year. this will be the first contraction since 1960. i

we've been keeping a careful eye on iag and all of the airline sectors over the last few days.t is down 7.26%. when you are launching a massive rights issue you will see a mechanic issue. not yet. trading strongly today, driving the tech sector. the 5g story -- it seemed for a while erickson had the power behind it, but nokia coming back nicely. lower despitek the fact it came through even the best expectations. it is the lack of guidance that has concerned the market. the stock trades down 8.5%. i also mentioned what is happening with the banking sector. a blowout performance in fixed income trade that beat everybody, even on wall street. this allows the french bank to move past embarrassing losses. the cfo was asked if the bank would be able to maintain guidance in the event of a surging coronavirus case in france? >> we anticipate there will not -- if youd nationwide look at the results of this quarter and the first six months, it is in line for us to confirm -- >> your fixed income activity was boosted by the exceptional relativity in the market. up 150 poor percent -- up 1

. >>> iag's chief willie walsh tells cnbc, he will consider investments into a whole host of allied companies including american and jal. an exclusive interview is coming up. >>> hello, everyone. yes, you're watching "worldwide exchange" with christine tan in singapore, and, of course, i'm carolyn schober filling in for ross westgate. the bank of spain has boosted capital boosting plans admitted by all 135 spanish banks but it's warned that some lenders are going to find it difficult to meet the capital requirements set by the government. meanwhile spain's prime minister says his country can avoid a bailout but admits the eurozone remains very fragile. spain will issue long-term debt tomorrow. that's going to be the key for the country after it creeped above 6% this week and also last week. meanwhile he says he plans to stick to target this year and there debt costs will cease. >> carolyn, lovely to see you. meanwhile they're hoping to boost the resources. they've stepped the plate to offer $60 million to boost its fire wall. they hope to help the imf in crease the fight against the eurozone

last year, iag, the airline's parent company, reported profit of $7.6 billion. —— airline's parent companyed profit of $7.6 billion. -- $3.6 billion. i asked our correspondent how it will impact asian travellers. it will impact asian travel, but this flows from multiple points in traveller, in most cases only once or twice a day, so we're not talking major disruptions here. it is also worth noting that british airways has been planning for this for sometime. most passengers have already been booked another flights and they have put them in partner airlines, and so forth. so the impact will be mitigated. having said that, it is on a monday and tuesday, two of busiest travel days of the week, so it is really going to inconvenience business travellers. but what could make the situation worse for the pilots as they negotiate a higher salary? obviously of this strike were to stretch on, and they have talked about further strikes down the line, if that becomes a bit of a pattern, then that is going to ultimately wea ken then that is going to ultimately weaken their bargaining position a little b

at the top of the hour, we get iag earnings across -- iag earnings. geopolitics could be a risk here. on the plus size -- side, the balance sheet on the mend. you might see a resumption of the dividend. the other thing to watch today is the university of michigan survey at 3:00 london time. likely to show consumer sentiment deteriorating in early may as americans worried about their financial situation in that cooling labor market that we've been discussing. seen in the jobless claims data. you can get those stories and all that you need to know to get your day going in today's edition of the daybreak newsletter. today, biden posed to impose tariffs on china ev's. we also have banks pressing richie sunak to ease up on china curbs. ubs potentially rewarding the rainmakers for wealth assets. find that by going to dy a bigo on your terminal. coming up, it the israeli prime minister strikes a defiant tone against president biden and his first public comments since the u.s. confirmed it was withholding bombs from its ally. more on the situation in the midd

oslo afterup 45% in reports the owner of british airways and liberia iag is considering a takeover offerares by 45%. huge. time now for the press review. time to take a look at what's making news in some of the papers around the world. the main preoccupation for many papers is the syrian conflict at the moment. >> the syria-russia crisis with washington center stage on storm. tweet provoking a we can go to the independent in london which says the missiles are coming. that headline is the same in the belgian paper. are pointing to the volatility of the u.s. president. the belgian paper is saying that trump is really blowing hot and cold now towards moscow. sending a tweet about syria and warning of a missile attack against assad. within the last hour, sending another tweet -- all nations should work together to stop the arms race. those two tweets alone represent the inconsistent messaging. is horrifying for people to imagine that trump and his early-morning dressing gown is sending off tweets like this, one of which could start world war iii. >> a lebanese paper asking whether there's a

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

we are showing the iage now of president bush looking out the airplane of air force one. was what dan bartlett called one of the worst photo ops of the entire presidency. that really helped cement the sense that president bush was not compassionate, not paying attention. he flew over new orleans and looked down as opposed to landing on the ground and trying to address the problems there. i recognize also that if the president goes to a dister area that contacts local resources. you can have a situation where the people who are the first responders are instead dealing with security cordons and setting up motorcades for the president. you want to be careful not to go into the area and text the resources of the first responders who need to be working on the rescue efforts. andyover picture like that president bush is not the only one to do it. in my book i talk about lyndon johnson in the 1968 riots in washington after martin luther king's assassination. he flew over in a helicopter and looks down ineffectually at the devastation and he looked eerily like president bush. the

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

iag, the owner of british airways, had a pretax profit, $56 million, and pick up in demand helping to compensate higher fuel costs. full-year pretax profit fell by 15%, 0 $1.6 billion. investors are focusing on a surge in its operating profit and a 20% increase in a dividend boost. the firm announced its keeping rupert murdoch's son, james, on as chairman. a quick look at the markets. just want to show you the currency markets. we only have four days to go until the debt deadline hits. gold is still above the $1,600 a troy ounce mark. that's what the asian markets have been doing today. one big story -- the worry over the u.s. especially for japan, the weaker dollar means a stronger yen and at its corporate japan like nothing else. it's a big problem at the moment. >> good to see him appear get its -- good to see you. general abdel fattah younes was shot dead by what has been described as an armed gang as he prepared to appear before a judicial committee. the identity and motive of the gang has not been disclosed. our world affairs correspondent sent this report. >> in the early momen

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

they have biggest stage in iag. entirely possible. they see a stake as being beneficial.ns thatential american may not want to do this. some analyst noted today. are some tax implications, have. large stake could there are some losses that loss be jeopardizedd by such an investment by qatar. there are some real questions whether american will want to do this. thatcertainly feasible qatar may see some benefit in making a pass of stake. there any price which american will go, okay, you can get this. accept the investment? >> we talk about a global and an industry that gone through a lot of the u.s.tion led by refer back to iag, the partner of qatar, they themselves see part of the global process. of any political considerations about global business,f the expanded north america across the pacific with the traffic in that qatarirection can bring. certainly the strength working together. the past. to american airlines themselves, were not too warm about the idea airways looking to merge them. julia: really interesting perspective. great to have you on john jls of consulting.

. >> that means something -- tree iage according to volatility. >> it means that you were not providing adequate resources where they were needed. >> ernestine warner is in charge of the residential mortgage group. her job is to inform me when she needs resources and what those resources are. this e-mail is for doing her job. what i am doing is now trying to address that request. to that is what she says in the interim. i am looking to move the entire associates class over. i understand we're talking february to august. in the interim, she is asking for help with the head of the group. i am also shifting people from other areas. this is an addition to the data area and the deal side, if there was the luxury of people on -- available. to go out and higher, you're looking at at least a six month learning curve, such that she needs the help now. i had to address this situation at that time by shifting people over and by making sure that we can help now. it i think you get the resources -- did she get the resources that cheated when she needed them? >

british airways parent company iag, 75% jump in their quarterly operating profits.ed 2018 bookings over the previous year as well. those shares all up. meantime, norwegian air down sharply from the previously stated iag, saying it undervalues the discount watching those shares for sure many of the major banks falling today. hsbc, a 2 billion stock buyback, not helping the shares there french banks moving lower as trading revenues disappointed some investors banks very much in focus airline companies in focus and, of course, ferraris, morgan. back over to you. >> dom, thank you for bringing us that. dom c huchhu at hq >> apple shares at a new all-time high today. becky quick sat down with the oracle of omaha and joins us next stay with us >>> good morning, everyone i'm sue herera with your news update white house denies seeking troop reduction on the peninsula of north korea. >>> hawaii's kiluea volcano erupting overnight, shooting lava into the air in a residential neighborhood and prompting mandatory evacuation orders for nearby homes. >>> hundreds of korean airlin

when cherry blossoms are iag four they could be pretty susceptible to freezing. but doug is here talking about the weather looking like it w l cooperat >> yeah, and i think tonight and tomorrow night next coldest nights. but they are right by the water. so the thing is they need temperatures above 60 degrees and we have it coming and moved the forecast up a couple of days because we think it'megoing to p this weekend. let's take a look show you whaesz happening right now. very mild night, mild day earlier. high temperatures into the low 60s. right now 47. winds out of the northeast 16 miles an hour. we have rain coming down from the north and that has allowed temperatureso cool. northern 41 in frederick. once we see c the clouder get out of here, temperatures will fall pretty quick and you'll be looking at fairly cool morning. not much t in way of showers on the radar right now. we've had a couple up toward the north up towards frederick. shower activity even some snowflakes, yeah, possible in the mhantains. buts really about it. now this whole system comes throu

. >> kate joins us iag some more precip is on t snow. >> we are dead in the middle of winter. it's not of december when everybody is decorating. this is as bad as it lly. this is the coldest part of the year in philadelphia, this week. the good news is once we get through we start climbing back towards springtime temperatures. but we ares a t also some light snow over the next couple of days. the good news is we do have a bit of a as we move toward the 7-day. but let's start off with the ne outside, it's not as cold as last night, it is chilly but seaso s coldest part of the year. it's just a little cold with in overnight. here comes our next system andv well-organized system. usually when we talk about a clipper welob of snow that moves quickly through the region. his is more of a frontal aligned right along this boundary and extends all the way down portions of the deep south of the lower mississippi valley and enough for snow as this system moves in. it's 29 in millville, 27 in allentown and a cold 16 in mount pocono. it's betten over the weekend. we'll drop to about 27 in

he has been there for 15 years as british airways ceo and then led the formation of itg -- of iag newth iberia. airlines various other . welling in spain, to create this ,ig european airline group which certainly over the last few years has proved to be more efficient than competitors such as air france. there been rumors he could do other things. is he done? he has radically transformed iag , radically transformed the european landscape, do you think he is done? there is a job opening at emirates, there is may more work to be done. christopher: if he does retire it will not be for want of offers. he has been such a dominant personality and european aviation. certainly is one of those big hitters who transformed aviation outside the u.s. it is hard for me to see him kicking back. guy,he is not that kind of is he? christopher: no. he is a driven character. he is not someone you would think of as being particularly laid-back and yearning for his pipe and slippers. we will see. it would not be a huge surprise to me. vonnie: he had indicated in november he would leave and two years. quite

that --is interesting decided he's going to defer his retirement at iag, potentially to take advantagef the situation. obviously, he is trying to deal with the situation on the ground. back to the fixed cost issue, ?hat is the relationship how many of the aircraft are going to be released? could contracts be broken? mark: the reality is you won't be speaking not only to the lesser ones, but the entire aviation ecosystem. we've been talking about whether slots need to be taken, and that has obvious be -- that has obviously been relaxed. you will be talking about whether you can refinance. you are going to be speaking to your fuel counterparts. you are going to be speaking to your boeing and airbus. to think this is just an airline problem and just about helping the airlines from government intervention, this goes well beyond the airline sector. it is going to come down to how good and how stronger balance sheet is. manduca, thank you. i have been trying to call the bottom in airline flights and book a vacation, but i just can't seem to pull the trigger. if they cut capacity, it is a who

iag wants to buy the airline but there is concern about jobs. genie: to wrap up, speaking of trial, it seems more and more tourists are flocking to cuba as relations with the u.s. have warmed up. >> people are trying to go to cuba before the americans get there, despite the fact that they are there already. they travel mostly through other countries in central america and the caribbean. there are rules on the people were needed for citizens to go to cuba. overall, tourism is up 14% in the first five months of this year, over 1.5 million visitors going there as well as a number of french, german, a british tourists. genie: time now for the pressure view. -- for the press review. we have got belle lupton with us here today. today's press is looking for the most part at this controversy brewing now between the u.s. and iraq. joe biden has been doing damage control. he called iraq's prime minister after the u.s. defense minister made comments saying the iraqi forces showed no will to fight the islamic state group. how has the press been reacting to

there are some competition cross overs in places like spain, where iag is very large. that would be a challenge. i think the key issue for the industry is, we have been seeing capacity in your grow at above market or above gdp growth rates for the last number of years. airlines like ryanair are very profitable. the processontinue of shaking up those competitors. $80 a barrel is something that will accelerate that process, which will be good over the medium-term, even if it will bad for guidance over the next 12 months. or you ever in talks with norwegian? ever interested in buying them? >> no. the problem with norwegian is that it is too big and growing too fast. the more it grows, the more money it loses. we are not interested in an airline that has a net debt of $4.5 billion and can't make money. manus: can i ask you about the other one line? ryan air will restrict non-eu holders voting rights in a hard brexit. having the best scenario of a hard brexit? is that rising in your estimate? >> yes, it is rising in our estimate, but i think on balance, you think common sen

police and homeland security are investigating scary iag the posts from over the weekend all used the word "clown," some even talk about blowing up schools. the unusual reports started surfacing back in august in greenville, south carolina. >> right there at that tree back there. >> reporter: children told police that clowns tried luring them into woods by offering money. since then, sightings keep increasing. on new york long island social media threats from anonymous >> the clown i was guess kneeling. >> parent chalique owen. >> nobody knows how to defend against it because we don't know if it is a prank or they are trying to harm people. >> reporter: now they are using social media to track down thes could seumed offenders. in la grang, georgia police posted about issuing warrants for four people on charges of making ter ris particular threats an disrupting public schools. in kentucky this young man was arrested for trying to scare people in a ditch. police have arrested at least 12 people across the united states for participating in menacing stunts or making false reports. in hou

and just 20 years old, her parents arranged iage to a man she did not know and a ceremony which included thousands of other couples. >> so there was an excitement to it. but i remember feeling some of the earliest seeds of doubt as i held the hand of a man that i met just a month before. this is something that i have grappled with my whole i t prenfollower. >> her brother beau the cinematographer. in the documentary, cara shows how she and her siblings feel their parents have chosen the so-called moonnies over them. she asked her parents some tough questions. cara long since divorced and left the church. it's playing here at the theater and you have to watch it online. pretty fascinating. coming up on kpix 5 and streaming on cbsn bay area -- >>> a dog owfor n rescuing others ed >>> 4:57 right now. a st. bernard has been safely rescued from england's tallest mountain. >> the poor pup was too exhausted from a big hike. we've all been there right? ce the 120-pound dog showed signs of distress and luckily a mountain rescue team responded to carry daisy down the mountain of a stepper. she's d