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

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

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

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

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

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

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

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

iag is the worst performing the stoxx 600 of this morning.y said they cannot give an accurate view due to the impact of the coronavirus. easyjet was out with another warning after planning on holding act other flights. tui is also getting hit. the entire sector is getting hit hard. francine: thanks very much. next, we are live in italy. more onve plenty italian bonds and how they compare to german bonds. this is a bloomberg. -- is bloomberg. >> there is a general recognition that we are not ready for big outbreaks and we are playing catch-up right now. >> the united states government must address the spread of the deadly coronavirus in a smart, strategic, and serious way. >> we have done an incredible job. it's going to disappear one day. it's like a miracle. it could get worse before it gets better, it could maybe go away. francine: that some of what we heard yesterday on the virus. let's get to maria tadeo in naples. how much is the government at fault here? thehere is huge pressure on administration to show it is able to tackle the virus.

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

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

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

iag, 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

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

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

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 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

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

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

but iag has got liquidity of more than 8 billion sterling, hassan @?eyjust ride this one out quiz ever 8 billion sounds an awful lot, does and it? but if you look at ba there have been roughly 250 aircraft from the smaller airbus models to the very new a3 50s. if you look at roughly those leasing and financing costs, round about $125 million every month just to have those aircraft parked, just to finance them. that's $4 million a day. that is just them. that's $4 million a day. that isjust on the them. that's $4 million a day. that is just on the capital equipment, that does not pay for any of the other overhead. $8 billion can soon whittle away and i think it is important that any business and airline is having to look at its reserves to see how long it can keep going. perhaps i'm not surprised that some consolidation is required at british airways in terms of its hubs. terrible news for the workers there but phil seymour, thank you very much indeed forjoining us here on bbc news. a veteran of the struggle against apartheid in south africa, denis gold

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

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

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

that's ryanair and iag. think that is a really well-made point, mark. let's talk a little bit about what may be goldman thinks would help at this point. airlineseen the restricted. what else needs to happen? mark: the first thing they are looking at is effectively restricting the amount of wages they pay out, and the government can help with that. the second element is around the slot restriction sizes. united talking about on a call this week planes flying over the north atlantic that are empty only because they want to protect their slots. the next stage of this could be, , whereaw in 9/11 effectively the airlines got a $15 billion part loan, part grant. will there be legal action against that from some of the more well-capitalized airlines? guy: i think you could certainly see some lawyers warming up on that one. i talked to michael o'leary last week. the thing that really stuck in my mind was he said in previous crises, what we have done is simple he reduced prices to stimulate demand. that is not going to work this time around. what do airlines do?

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,

stocks like iag, these kinds of companies continue to feel the pressure. that sector has really felt it. the european close coming up next. we will have more analysis in just a moment. ♪ guy: we are going to take you to the white house. the president and the vice president speaking. let's take a listen. vp pence: our airlines will took a key role in preventing the spread of this disease. at your direction, we met with leaders of the nursing home industry to talk about the measures come of increased measures to present -- to prevent the spread of infectious disease. nursing homes will be announcing a new priority of inspections for infectious diseases. we are detailing that. we explained it to the industry today. on the issue of testing, mr. president, you have made that a priority. we will have over a million tests in the field today. i spoke to governors grateful for the fact that the changes you made this weekend through the fda now make it possible for state health clinics, as well as universities around the country, to be able to conduct coronavirus te

matt: iag is interesting. airways is accessing money from the spanish government. well, which is a german airline. are they going to be able to get multiple countries to help them out? for example, is austria going to join in? is belgium going to join into help lufthansa. lufhtansa isn't talks and runs the state carrier for switzerland, belgium. it is likely to follow the german -- essentially, with the chancellor of austria is seeking that vienna remain the transport hub with direct flights to north america and asia. the swiss government is in talks ufthansa for a loan for its swiss unit. there is a lot going on with the units of lufthansa. british airways will not be able to access the spanish loan, which is restricted to the spanish areas of iag and not british airways. matt: right. of course, they are together under the iag umbrella, british airways and iberia. thanks so much for joining us. i want to point out as well, we were looking at video there of my number two favorite airport in the world, berlin t

and i thought this was interesting, the language around iag.hey said about the second quarter being even worse but that we could have profound changes in travel patterns going forward as a result of what we've seen with the coronavirus. now, it's so severe in the united states, president trump decided to put forward a $50 billion bailout in two tranches for the airline sector -- low-interest loans, access to capital, so they can keep moving when the economy opens back up again. but this is filtering into many levels of the economy. for example, tripadvisor, the travel site, is laying off 25% of its workforce because people are not making their plans, as i was suggesting. and even the behemoth in the internet sector, alphabet google. it beat expectations on its revenues and the total group made over $41 billion in the quarter, which is extraordinary. but the guidance for the second quarter was very similar to the airline guidance. it's going to get much worse. they're very dependent on the auto sector, the retailers, restaurants, and the like, f

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

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

iag down 27 and change.ps across travel and leisure, anchoring the big drops in every other sector in europe. anna: europeans are facing increasingly draconian restrictions of public life as the government moves to limit the coronavirus outbreak. germany is partially closing borders with five other while residents are being asked not to leave. joining us now is elizabeth, a senior research analyst in modern deterrence. a think tank that specializes in defense and security. what is it around the defense and security brief, i suppose, that you can lend to the situation, how to prepare and fight coronavirus in europe? people of normally defense -- people think of defense and security as a country attacking another one, but the security can be affected , as we are experiencing, by a virus, and it is nobody's fall, it is mother nature attacking, you might say. the disruption to daily life is what we are seeing now. unprecedented disruption, and if i may add, people at a total loss about how to respond, what to do

how much cash or liquidity does the iag group does that have on hand at the moment?uarter base. so last thursday, we released figures for our liquidity at the end of april, and we at that point had 6.4 billion euros of cash and cash equivalents, and we had tojump liquidity of ten billion, so 3.6 billion of facilities. we have not drawn on those facilities, those facilities in effect represent debt. so, if we were to draw on them, we would just be taking on additional debt. the talks of using relative strength to drive competitors out of business is total nonsense, and i think you've got to realise the airline industry is not functioning at the moment, we are not flying. 0ur relative strength is the cash that we have, which we are burning through until we can get to a position where we can start flying again and start generating cash to shore up our liquidity. a labour committee member thought mr walsh was overplaying the financial costs. it would occur to me that almost all aircraft are grounded, 80% of your workforce is furloughed and paid for by us, the taxpayers,

iag there. north of 4.5 percentage points this is mirroring the price action and the damage is continuing there is a lot of fear where we haven't had any response yet so expectations are high in terms of the response we can get after the cut this week. back to you guys see what we can do to this picture. turning back to the u.s. markets now. futures indicating what could be or should be a block the nasdaq off 236 points. now global chief strategists also a cnbc contributor. gina, we'll start with you what has stood out to you drop in stocks. what is going on >> one of the reasons you are not seeing a bottom is due to screaming buys i think that is a whole story in it self-outside of that the markets were really topee. one of the reasons you are not seeing support and price some of this is a result we don't know when this will be over that's where we are picking at the markets hoping it is 1,000 points over and it is not yet. >> in your mind, are certain parts in the market more missed price give

iag argues it wasn't consulted over the plans, but government officials say they were "disappointed" discuss the proposals. from monday, dentists will be allowed back at work, but a survey suggests two—thirds of practices in england are not planning to reopen their doors. many have also told the british dental association they won't be able to offer a full range of services. some say they haven't had time to make necessary adjustments, including fitting perspex screens. people living in the republic of ireland will be able travel anywhere inside their own county from monday, instead of being limited to a range of 20 kilometres from home. the irish cabinet is accelerating the easing of the country's lockdown, allowing groups of up to six people to meet indoors or outside, provided social distancing is maintained. let's speak to our health editor, hugh pym, who's here. more than 40,000 people have died, an unthinkable number, really, at the beginning of this pandemic, for the beginning of this pandemic, for the uk. and the infection rate is patchy across the uk the moment. yes, clive,

stocks like iag reporting there. expecting to see some adverse impact in germany, the dax down 4%. have a northern town, 1,000 people under quarantine after they found 14 cases there last night. in france, the number confirmed almost doubling overnight, you see the cac there. and in italy where you have multiple towns under quarantine, 3% lower you see number of airlines reducing flights to italy. that will have a massive impact there. >> notable there italian markets are outperforming some other developed ones back home, futures continue to signal a lower open. look at this, it took only six sessions for the s&p to move all the way from record highs into so-called correction mode. that's the fastest slide from a record high to correction in the history of the markets for more on what this means, we are back with anestasia and jenni jenning harrington how do you navigate these markets? what is the strategy now >> short term, i think we are positioned in the options market i think there is great opportunities to be adding on this pull back opportunities for a stand out. these are th

iag argues it wasn't consulted over the plans, but uk government officials say they were ‘disappointed from a meeting yesterday, to discuss the proposals. as the protests about the death in police custody of george floyd continue, president trump has said that every american must receive equal treatment from law enforcement, regardless of race, gender, or creed. it comes as a new video has emerged of a 75—year—old man being pushed to the ground by police in new york state. aleem maqbool‘s report contains some content that some may find distressting. we're not leaving. and there's no sign they are. not here outside the white house, in spite of driving rain. and not around the country, including chicago, where kanye west took to the streets with protestors. but there continue to be staggering and disturbing incidents involving police. in buffalo, new york, a 75—year—old protestor was shoved to the ground by an officer. he is seen motionless and bleeding from his skull, as police file past without coming to his aid. two officers have been suspended. but it is just the latest in a torrent

and rail rivals have been attacking the government's flybe rescue plan, with british airways owner iagate aid rules. our resident aviation expert theo leggett has been keeping an eye on this and can bring us up to date. what is the latest with where this is headed? well, this deal, this rescue for flybe was or is going to be controversial and it has attracted a pretty scathing response from the compa ny‘s attracted a pretty scathing response from the company's rivals. you have to remember that flybe is notjust a small company, it was taken over last year by three much bigger ones. one of those is virgin atlantic and one of virgin atlantic's main shareholders is delta, one of the most profitable airlines in the world and questions are being asked about why such deep pocketed investors need the government to step in and help them keep this airline going. in a complaint to the european commission, we have had willie walsh, the outgoing head of iag, the company that owns british airways and iberia, he said virgin delta now just want to use airways and iberia, he said virgin delta nowjust w

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

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

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

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

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

lufthansa, easyjet, iag all under pressure. 7%.france down by lufthansa down by 4.5%.the biggest travel company down very hard. a big meeting in russell's tomorrow. we will see the ceo's -- in brussels tomorrow. the ceos of these companies will be talking to them. we are looking like we make it some coordinated action. that is the european close. vonnie: in the u.s., we had an up and down overnight session and a bounce at the beginning this morning, but a small bounce. since the policymakers are going to try to work together and talk to each other, we have seen that increase. major indices up more than 2% period dog got up to 2.5% higher. the 10 year yield back to 2.09. move. a big the spread is wide because of the move in the yield curve which was quite substantial. 4.3% and still below $47 a barrel. that tells you how big the selloff was in those assets. here are individual movers. andter was higher all day we will be talking about twitter and the ramifications to where the company and maybe for the presidential election. cosco -- costco and some of the .ther food do

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

but the new boss at iag says, look, he's going to get rid of alex cruz and instead sean doyle will take might be able to steer the airline in the right direction amidst so much turbulence for the airline industry right now. earlier i spoke to the author and poet michael rosen. he is the author of we are going on a bear hunt. you may have a copy at home if you have children. he spoke about spending many weeks in hospital and 48 days in intensive care. i have been talking to him this morning. he has had to learn to walk again, effectively. he told me how thankful he is. unbelievable gratitude. the nhs is a wonder. it is a glory. i go there now, and have been since i left hospital at the end ofjune, i'm going nearly every week for eye procedures, ear, for scans on my chest, so, it's a glory that this thing can save our lives, can look after us, and of course, i'm 74, i was born just before the nhs, but the whole of my conscious lifetime has been in the nhs, and it's a feeling that, it is how a government can act in a loving way, because what it's doing is caring for us, as is said in the c

más de 36 mil acres y dirección del viento sigue soplndo entonces no nos ha afectado y cambia y trae iag san francisco buena porlanetada de aire de capa marían y arriba de los 200 puntos y se extiedne hasta el viernes 2 de octubre y la mala calidad del aire por los incendios en la sierra nevada, por supuesto balas todavía está hacia el norte dejando condiciones grises, elgolden gate está en zonas altas y debido pro está capa marina u panorama con temperaturas que continan cálido y draticamente hoy bajó de los 70 a los90 para san josé vamos a ver concordo sin lluvia para nosotros mmucho cuidado colso chiquitine sdescenosen al temperatura pero secopar nosotros más detalles al volver . >>> y autoridades ahbiliaron los siguientes centros de refugio (ver información en pantalla) para más sitios de evacucación visite (ver información en pantalla) ya regresamos gobernador de california fijo que estaba consternado por los siniestros de las últimas 24 horas , también el incendio (en inglés) y mencionó que dedican mucho tiempo para sofocarlos . >>> probablemente llegue al complejo de incendios y e