i want to ask you a question we are getting on cathay pacific, swire pacific, and air china. announcement. you cover cathay pacific. any thoughts on whether air china could be taking over the company? what are your thoughts on cathay pacific? ivan: there have been rumors about cathay pacific potentially restructuring their business, specialist -- specifically on the cap they dragon -- cathay dragon side. i think this could be an announcement of restructuring. there's also the possibility that they could be raising cash from major shareholders such as air china or swire. possibilitye is a of a takeover from air china but it is quite remote. haidi: is it remote? we've seen air china over the last decade quietly amassing a 30% stake. you have the ringside view as to how the chinese aviation authorities have been cracking down on cathay pacific. we know about the tensions between hong kong and the mainland wanting to assert more control. not make sense that a takeover would be inevitable? ivan: i think the tension between cathay pacific and the mainland aviation regulators reache

cathay pacific becomes the latest airline to get a government lifeline. eard from the chair moments ago that cathay may cap equity markets for further fundraising. how much odoes the company need overall?/ sid: cathay pacific has been struggling for a while and they have been more hard-hit than other carriers, especially as air travel returns and other places because hong kong does not have a domestic travel market. they are pretty much dependent on long-haul travel which is why the carriers says they are burning cash and need further funding. this is a pretty hefty round of funding. the carrier will also implement another round of data and in the secondary voluntary program. they have been burning as much is 3 billion hong kong dollars a month since february so they need the cash. francine: are there too many airlines around? one of the things we have been trying to figure out, governments are trying to figure out how to save a lot of their national airline carriers. but some were struggling from the start so how many at the end of this will be bailed out

cathay pacific is having a wild ride on his return to trade.ent-backed rescue prompted the biggest surge since 2008 and the shares fell back. and standard charter under fire under the support of's china security will for hong kong. atop invested said they must accept responsibility. and a big deal. the geo-platform breaks and more money as indian tech prepares to challenge the might of the top chinese players. we begin things here with a look at what is happening ash some u.s. risk assets they were, just having a look at what is going on with the bond market. also what is going on with currencies. 10 year yields on change. pretty much unchanged. looking at the dollar index. seeing more weakness again for the greenback. seeing at the moment sterling at 1.27 and the euro at 1.13 107. checking in with the aussie and japanese -- and looking at what is happening with the yield picture. there we go. at the bank of japan two basis points above it. 2% there. brent crude continuing slightly lower. that has been the trend the last two or three days. ts f

and according to the report, cathay pacific will undergo a $40 billion hong kong dollar capital restructuring headlines we have been talking about. cathay suspending shares and mulling a fund-raising including a rights issue. latest. that is the pacifica and cathay having shares suspending -- suspended. the who says transmission of coronavirus by asymptomatic people is very rare. that is as global cases past 7 million. deaths exceeding 400,000. let's get to our china correspondent. what else did the who say? tell us more about the research coming out in nature, the publication, that outlines the publication -- that outlines lockdowns? >> based on reports of contact tracing from several countries, the organization says transmission of covid by people who are not showing symptoms is very rare. that contradicts earlier research suggesting the virus was difficult to contain because of possible asymptomatic transmission. back in may, a journal of medicine said transmission of the virus by seemingly healthy people is throwing a wrench in pandemic control. so this is good news from research. the jou

of government will own 6% cathay pacific once recapitalization is complete.neer chesapeake energy is preparing a potential bankruptcy filing. once rival exxon title -- the company amassed incredible debt due to drilling programs that came up with too little. that is your bloomberg business flash. tom? francine? francine: thank you so much. a lot of the focus will be on the better than expected figure out of the euro area gdp. a lot of the focus is not really about the rally, but maybe we have come to the end of the rally. , looking at dollar. tom and i talking about government bonds in the european periphery. they are flipping as the european junk rate increases. --ing up this is bloomberg. ♪ >> good morning, everyone. "bloomberg surveillance." we are having a wonderful conversation on some of the market dynamics out there and it surrounds -- and the surround of this huge rally we see in equities.. you mentioned earlier, the ,ervice equity -- the service there are income statement dynamics. part of this is the balance sheet and part of the balance is costs ne

cathay pacific, about 50% of its traffic's transit traffic. and there is a huge investment in expanding hong kong airport with a new runway and terminal, so it is about competing in that space as well. that is what this package in this support is about, it is hopinghe hub, as well as and assuming things are back to normal, from both a travel pattern standpoint and political stability standpoint in a few years, although we don't know what is going to happen in those cases. , greatbrendan sobie having you with us, that was sobie aviation's analyst. crime,0 a.m. hong kong that is 12 30 p.m. in sydney, coming up next, ready to play a chinese game, out for -- out with new numbers for his upcoming listing in hong kong. we have him coming up. this is bloomberg. ♪ ♪ haidi: a quick check of business flash headlines. charge to a top shareholder, as china's sweeping security law in hong kong ceo david cummings says he in -- is uneasy about backing the legislation without knowing exactly how it will work. starbucksf china's rival has quit as head of the l

deals reporter manuel baigorri with the insight lien on the deal to save cathay pacific.is weekend, don't miss this. our conversation with secretary paul on the future of the city as it battles protests and beijing's tightening grip and the coronavirus outle outlook. 11:00 a.m. if you are in sydney. plenty more to come. rishaad: we are going to have a look at markets. markets on the way down but we are off the lows of the session. let's see what the afternoon brings for us. that is it for this edition of best of bloomberg markets -- for this edition of bloomberg markets. best of bloomberg markets middle east is coming next. ♪ >> the following is a sponsored program that is furnished by shriners hospitals for children. ♪ alec: what's up, everybody? it's alec. it's the night before i travel to oklahoma for my filming session. i love seeing my boy, kaleb. kaleb: so excited to finally go somewhere new. alec: i can't live without my shoes. i also got to bring this thing. kaleb: i have a hard time choosing which one.

to some other business stories making headlines hong kong has ok to $5000000000.00 bailout for cathay pacific the government says it has no intention of becoming a long term shareholder that wants to protect the country's role as a global aviation no one is grounded most flights travel is restricted to cross much of the region. have taken to the streets over museums and restaurants is starting to reopen they say the 2020 season for them is over he wants to see them through to next notch when they hope to resume as back home. at a german air taxi company has joined the ranks of the $1000000000.00 tech startups known as unicorns unit based is valued at over a $1000000000.00 in new funding for the top best buy they give it. one of the united states biggest frack is chesapeake energy is reportedly preparing for bankruptcy monday it's. $180.00 the same time for pics oil deal stock was worth half that tuesday on the latest news companies spearheaded the shale revolution a decade ago making the u.s. the world's top oil producer but the credit crisis has crippled prices. let's talk about that with yo

after securing a $5 billion bailout on tuesday, cathay pacific shares have had a volatile 24 hours.te. joining me now from singapore is sharanjit leyl, who has more on this story. that's right. as you said, shares of cathay pacific airways having a turbulent ride after the announcement of that $500 billion government rescue plan, shares rising the most since 2008 before falling back. the carrier actually soared some 90% ahead of the —— 19% ahead of the opening of the hang seng and it is now up 1.3% or so. hang seng and it is now up 1.3% or so. trading in shares had been suspended yesterday pending these announcements. the proposed $5 billion rescue plan includes issuing more shares, warrants and rights as well as the extension of a loan, but these plans are still subject to shareholder approval, in what will be an extraordinary general meeting thatis extraordinary general meeting that is due to take place next month. banks like credit suisse are not being too positive about cathay‘s outlook, they downgraded the shares to the equivalent of cell, they say the prospect of recovery rema

one and a quarter $1000000000.00 payout to repay debt and restore services in asia hong kong's cathay pacific received a $5000000000.00 bailout from the government after suffering huge 1st quarter losses. middle eastern airlines emirates as he had cattle airways recently announced job losses and pay cuts of up to 50 percent. let's introduce the panel in kenya's capital nairobi rafael coochie special envoy to africa on arab political affairs at the international air transport association in san antonio texas travel and aviation rights have been a wilson and in the spanish capital madrid they go on maida a international aviation law expert as well as an accident investigator welcome to you all let's begin in the spanish capital madrid would you go only don't do you think that easy jet ryanair and british airways have a case that needs to be heard can they take the british government to task over this hello thank you thank you very much yeah i mean when you start all we can hear is that it's absolutely understandable what they're doing because this type of measure the government of laws are impl

cathay pacific with the substantial loss in the first half of the year following this week's bail out. the japanese market was a big turn in the story. the market closing down only by three quarters of 1% we saw them going out of the yen and going into the yen when we saw money go out of the yen supporting the tokyo market off by about 2%. was down more than 3% at one point. the prime minister saying they did expect more in the reopening there. >> to early trade in europe, julianna tatelbaum is standing by in london there >> good morning. european markets have been open just about two hours but it feels longer than that. we opened in negative territory. the stoxx 600 extending the sharp losses we saw yesterday. trading higher around 1% or more the cac 40, the french market leading the way higher 1.6% coming off steep losses in the overall index drops more than 4% the worst daily performance since march 23 pausing for breath and trying to determine where the markets go from here. >> we had seen the trade auto, travel and leisure and banks are on the down side down .3% one of the more d

no word on whether cafe would eventually be affected, cathay pacific, the hong kong main airline. you mentioned the broad rally on wall street. airlines had a great rally. united airlines come alaska, leading in a surge. also on evidence that perhaps air travel is starting to pick up a bit. you mentioned another company that has felt the impact of these growing tensions in hong kong, hsbc. we are finally getting a stance from the agency. stephen: that is right. hsbc caught in the middle. for beingeen blasted static -- silent on the national security bill, not voicing support for them in particular by the former chief executive. hsbc now has come out in support. petition insigned a support of that proposed security law. that wewe reiterate respect and support laws and regulations that will enable hong kong to recover and rebuild the economy. but as i said, it is a delicate position for a firm like hsbc, which generates half of its profits in asia. much of that tied to china. but that is based in london. there is that old saying, in times of trouble you keep your head below. hsbc ha

in two weeks, cathay pacific is adding flights to hong kong and lufthansa is resuming its lights to germanyto social distance. makeup artists have to wear personal protective equipment. actors also have to wear protective equipment, except when they are on camera. there will also be coronavirus testing and temperatures will be checked. individual counties have to approve on restarting production before any work can resume. >>> is 5:57. the uk pulled down a statue right there. it is a statue of a slave trader. protesters in bristol used ropes to take down the statue of edward colson. then they rolled the statue into the river. the statue has been controversial for years. he was born in bristol in the 17th century. he made his money from a company that transported slaves from aframericas. demonstrators also protested outside of the u.s. embassy on sunday, in support of black lives matter. >> you have to support people who need the support right now. i hope someone would be marching for my rights. >> like many states in the u.s., the uk is banning large public gatherings. >>> protesters are jo

i feel like you still have a neutral rating when it comes to cathay pacific.ng at a big dissident is for not doing this? >> unfortunately, hong kong is such a massive global hub that for them to rely on this is difficult. we know their excuse -- exposure to the markets is huge. this will not be enough to boost their revenue back to where it was. hong kong is globally exposed. if there is still covid active anywhere in the world, hong kong will be affected. we will leave it there. thank you. the minneapolis city council pledges to begin the process of abolishing its police force. we will have the latest on the protest in the u.s. next. this is bloomberg. ♪ yvonne: the city council and minneapolis will begin the process of dismantling its police boards after the death of george floyd sparked a wave of anger and protest. rallies continue across the u.s. and the world. andes have lifted curfews president trump as order the national guard out of washington. we have the latest. this is some kind of change. how will they replace the police force? >> it is quite a big

we saw this during the summer of unrest last year with cathay pacific and other carriers having to kind of acquiesced to the desires and demands of mainland china. so this is being pretrade by the andest clan that hsbc standard chartered bank into british banks have sizable businesses here in asia and greater china and the mainland in particular or perhaps kowtowing to mainland wishes, because hsbc in particular was in the spotlight and they kept their head below the parapet at this time. they have not come out in support oregon against the national security legislation. we got a blasting last week from the former chief executive of hong kong. hsbc was the target of so many protests last summer because it had frozen or closed funds that were raised to support the protest movement. protesters thought they were curbing the rights of protesters to have their constitutional rights. hsbc said that close those accounts for technical reasons. sue, branches were torched we had to facing of that two lines in front of the headquarters. , somewhat understandably, cap there had low, but now they si

crisis measures as the world bank sees the worst global recession since the second world and cathay pacificget a government lifeline in the wake