easyjet is one of the biggest losers on the stoxx 600 today.ore on this story, this is the nordic angle here is ari. what did they have to say? it slammed first thing this morning performs since it has recovered a little bit. the numbers sounded ok to me. there was a big reaction to a relatively small -- >> the factors were indemreble the 90's. the costs were down a little bit more than expected. they have been adding capacity. they bought slots from earlier this year. in the long-term it puts pressure on yields. generally, it seems like the range was just a little bit lower than what analysts were expecting. >> is the reason for that, that they have taken account of what's happening with their moscow roots, what's happening with their tel aviv roots? what's happening with their egyptian roots? maybe analysts hasn't fully factored in those events? >> you have to wonder if some of them are waiting a little bit to see what the company would say. the company said the range they had given takes into account everything that has been going on. they -

at the same time, you have easyjet and ryanair.n wings will do all the short-haul flights that aren't hub related. they will be doing a lot of inter-germany flights. an problem is, they are at operating cost disadvantage. the ceo of german wings mentioned that at the frankfurt airport. they cannot compete with the likes of easyjet and ryanair. these are the challenges he faces. he also faces high labor costs. a few things left unsaid does have going for it, incredible reliability. safety standards, one of the industry leaders. those are very important for german consumers. remember, just six weeks ago, they issued a warning. the stock went down 16%. that is the most since 9/11. we saw a profit warning from air france. it is a difficult time to be a european carrier. >> it obviously is. they have a huge amount of industrial relations issues. ,alk to me about a bright spot a subject close to my heart. food. the catering business, it is a bright spot. they are going to be able to sell the business, aren't they? >> when we think of ger

easyjet sales are up. geopolitical events happening around the world and how bad they are impacting european business. ♪ >> 7:47 in london. easyjet revealed sales rose. the budget carrier gave its outlook. terry lundgren is here. how did they see the year painting out? they are positive compared to last year. the low end of their range is 14% better than last year. one has to wonder if they are being cautious, giving that they have flights to tel aviv. aw an increase in load factors. a strong summer. everyone was wondering how the summer would pan out. wondering, is this going to be too much? is it owing to push down prices? you mentioned the flight to tel aviv and moscow. what is the sense about how concerned they are about their businesses to those locations? >> i was in amsterdam last week. i was speaking to carolyn about that. she was pragmatic about iot. she said, we will deal with it as it goes on. she was positive about their customer base in moscow. they are probably over there. >> are they picking

they are following what easyjet has done.e stepping into territory that is quite significant to these locals. justu saw easyjet announced they are opening in amsterdam. this is significant. that is the hub for air france. they are looking at france. to expand.a place they want to be in italy. ryanair is doing the same thing. primary not in many airports. if they are conscious of that. they are looking to angle into those markets. >> the competition becomes fiercer. let's talk a little bit about staffing. the guy we just heard from his leaving. there are questions about events taking place with a are showcasing the depth of their management team. there are questions about their leadership going forward. we had a guest on from charles stanley. there are rumors. cfo.ey will be losing a they have a new cfo in the office today. he is getting a lesson on how to do things. they will have the management team rollout and speak to the press later today. the thing about michael is he is invested in ryanair. he is a shareholder. you have

easyjet has never been able to compete with us on price.a good job of going after some of lufthansa and ba's business passengers. ryanair is copying that trend. they are doing so with a huge cost in price advantage. our principal competitors across the european space are ag -- r i .g 00 are iag and lufthansa the business continues to involve. >> thank you for your time. that was michael o'leary, speaking to us on the phone from dublin. by spring.strike what effect it could have on food production. ♪ >> welcome back. they report was just released earlier this morning. lower prices may not be here for long. el nino is expected to strike this year and it could royal agricultural markets around the world. good morning. thank you for coming in. let's look at the price and the commodities market. how are commodities markets pricing and the threat of el nino? >> we are comfortable. we have not seen too much of an impact. risktle bit of a weather into the tropical commodities. see -- fromere you el nino. at this point in time, prices are fairly com

but easyjet is growing.hink an important point is there again is over the next five years, they're structuring their deal with airbus and they can take it out as part of that deal. we also have to remember there are a lot of legacy carriers around europe, not only air italian but the scandinavian airlines, but in a weak position and even some of the strong legacy groups are struggling with losses on a short capacity and are cutting that back. easy jet plans to jump in and take that space in a profitable way. >> i'd like to ask you now about the security concerns about mh- mh-17, security in those areas, the talks of aviation authorities. what's your view now of the aviation authorities? does more work need to be done? >> it brought out the questions, leading industry players. we've said for years, we believe the system worked. it hasn't been a system, it's been a composite of different systems of data, regulatory authorities, airlines, that has served quite well until what we saw happen last week. some leade

easyjet hamaand keep it simple. easyjet, keep it simple. i question how well that will work.airlines don't have an easy time of making the cost work. separately norwegian is testing out the low airfare principle that has not really worked out elsewhere. theindustrial relations, pilot strike and they have in some ways toughed it out but there is nothing like the grim determination, you can see iag is giving and its previous figures. the report from lufthansa that they are seeing forward bookings remaining week. we know the capacity story, but how much are the current recent events affecting sentiment out there for people wanting to fly out a moment? there are the terrible news from 17. h 17 -- mh how much will this really feed into that? >> at the moment, that is very intangible. malaysia was losing money even before the first incident with mh 370. they lost a lot of business with the chinese public and airlines ,ight now, after mh 17 they're looking to improve the way that information is collated and shared. industry leader -- a well respected industry leader has said that th

the german press a may announce a further low-cost airline, something to compete with ryanair and easyjet. that is their challenge going forward. they have high labor costs here in germany. in some ways, the challenge that some ofa is having are the same challenges the north american carriers had a couple of years ago. they are not very efficient. they need more fuel-efficient fleets. to do that, you need to come up with some cash and capital to make some big investments. nott least they are carrying the debt loads that france is carrying at the moment, which is a big problem. i wonder if they could put on another -- do you put another are going toy, we sell more seats? i mean, this is an unprecedented victory, isn't it? >> you just gassed up whatever a380's you have, put seat restrictions aside. months in advance, they probably cannot turn it that quickly. look for german companies to capitalize on the feel-good moment. the daxe looking at today. is it going to have as good a day sibley because germans are feeling confident? they are in a good mood. it will be interesting to track that t

easyjet up. aberdeen asset management is lower because it is about assets under management. u.n.that -- why is the stock lower? remainpany says they confident they can drive profit and build revenue. they are down over four percent this morning. nissan is out with numbers. it is expected to be the best in this quarter for the japanese automakers. the estimate was for 84. they've match that one solidly. the story is not changing for forward guidance. aheadline looks slightly of where we would expect it to be, 2.4 trillion. that is the top line. net income is the line we are flashing heavily. bestis expected to be the of the japanese automakers this time round. another company on the move for you. tim.com says his political party they have vowed to reject the national party from office. any party with five percent of the vote is guaranteed. the united states has reached evidence it will prove the russian military has been firing artillery across the border into ukraine. it reportedly shows rebels using heavy artillery. saysutch prime minister heavy fighting has prevented investigat

this into the context of the wider easyjet, how significant is it? and propose that last week it is very important. there was a competition with virgin atlantic and it was a coming of age to announce that route -- route. to regulatorsing and of to start flights back there soon, fallen with the faa said. said.lowing what the faa travely be hesitant to and they have a healthy customer base. it is a popular airline. it began flying from there. that is a positive aspect here. >> how has the last few days change the perception of the airlines sector? it has been a story for the airline sector for quite some time. put assile attacks different spin on the story. we lived through 9/11. eventsd through other that had significant effect. can you tell me what this means? >> what it shows you is that the industry needs to speak with one voice and have a more consistent approach to what it does. it is a well-regarded industry leader. they sit down and come to a consensus point of view. look at government and security agencies. an experiencehad like 9/11 until it

>> it is 80% easyjet. our average is 46 euros. >> i look forward to that. >> it's on average, so not everything. we can thought about the cheap fares, but the average is 46. what we want to offer is a really good business product. very good schedules. extra legroom. us one taste of what you are going to do. i know you are not going to and not until september. ,> we are to give premium seats fast tracked security where available. at a lot of the primary airports it significantly improved. think that is very unattractive. it will be a lot cheaper than our competitors. >> when you look through the last three months what is your single biggest concern? unless something untoward happens over the summer months like the lays in last-minute closing bookings, which tend to be very attractive in terms of ofcing, that's the kind thing, something geopolitical. >> there are plenty of politics. >> people's travel plans are pretty much decided. is going on in ukraine, with russia, what we have going on in israel. how doe

easyjet shares take a little bit of a hit this week. of there's too much capacity in the short-haul market, mainly at gatwick, the easyjet base. ryanair is mostly out of stanstead. interesting to see how they are pushed in terms of their charm offensive. whether that is showing up in the numbers in terms of their pitch to business passengers. are they seeing more business traffic? >> i keep asking people, on a businesslike, would you go ryanair, i am yet to feel a shift on that? kari lundgren, back monday and we will talk about ryanair. russia raises rates unexpectedly. we break down the essential bank decision when we back. ♪ >> welcome back. what is happening with the ruble. a surprise rate hike from the central bank in moscow. this has been the reaction. interestingly enough, initially the ruble strengthened. the dollar is now reasserting itself. what is the central bank seeing that we are not? questions surrounding this aggressive rate hike, more aggressive than anticipated. we will talk to elliott gotkine in a moment about what is

from europe, loouufthansalufthar france, easyjet, turkish airlines and aeroflot. british airways said it would continue to operate and monitor the situation carefully. nbc's martin fletcher joins us now from tel aviv. martin, how safe do you feel in light of some of the changes that the airlines have made here? i can't help but make a contrast between what you're wage or lack of what you're wearing in terms of body armor and the images we see in gaza right now. >> there's a huge difference, julia, between life in gaza .life here. in gaza, life must be hell for the palestinians under almost permanent attack in the air, sea and ground. here, protected by the iron dome, these are the centers of security, frankly. so when the airlines cancel their flights of at least 24 lours, the israeli government responded very angrily. the transportation minister said you're rewarding terror. the prime minister called on the americans to restore flight. on the other hand, a rocket did fall within one mile of the april, so that is enough to put the wind up many, many of the people

easyjet down 3%. lufthansa being drap dragged lower today by 2%. >>> s&p saying there would be long-term credit risk if boeing were to close ex im bank. s&p estimates boeing's credit arm would have to find an extra 1.2 million in needs. >>> shares in commerzbank are trading lower today after the "new york times" reports u.s., state and federal authorities have begun talks with the lender over dealings with iran and other countries sanctioned by the u.s. annette is in brussels. we're getting you on a different topic now, annette. can you give us some context in regards what sort of size we're talking about is being reportedly talked about at this stage versus provisions and profits for commerzbank last year? >> yeah. actually, that's the interesting part of it. at least what we are hearing now from the "new york times," commerzbank has booked by the end of 2013. they had 934 million euros in legal provisions on their books. that should cover it. the question is whether it's remained with that 500 milli

we've seen what ryanair easyjet have done to the short-haul. >> ryanair said in the past that they mightinterested, but they need the right place. >> michael o'leary love to talk about this. adamantay, they are that ryanair needs the dreamliner to make this work. the waiting list for the dreamliner is enormous. >> thank you. we will be back in two minutes. ♪ >> welcome back to "on the move ." we are 30 minutes into the trading day. let's see how things are shaping up. the picture across the equity markets. things looking positive on the ftse 100 and the dax. the ibex more sluggish this morning. let's dig deeper into what is happening in the equity markets. manus? >> like magic. let's have a look at these three stocks. balfour beatty down. this is a big engineering company. they have got a worsening trade performance. within their engineering business, things are getting worse. heirs going to knock t profits. they will do asset sales next year to make up for it. three profit warnings in the past 18 months. they did open a little bit lower. vw. this is a cracking story. down 1%. because th

shire pharmaceuticals, the abbvie deal is going to be at the top of the agenda along with easyjet. what happens today is you hear rhetoric from angela merkel's party. the leading economic indicators in the united states. we also get the consumer sentiment index. that is going to drive u.s. futures. u.s. futures since i got here were coming off lows. that is beginning to turn again. take that back around. those are paris futures and those are asian futures. back here in the u.s., you have the nasdaq down 0.3%. s&p down by 0.3% as well. john, you touched on some of these currencies. it is worth referencing them again in terms of dollar-ruble. the big move came yesterday. you saw dollar rising by 2.1%, ruble falling by about that amount. this morning there is a small rest. the micex opens down 1.6%. the poll will talk about the next tension level of sanctions if that is what the proofs deliver for the u.s. and europe. we wait for absolute evidence on exactly what happened and where those missiles came from or who fired them. back to you. >> thank you very much. a malaysian airliner sh

easyjet, lufthansa can buy their aircraft in europe.e believe this'll become another reserve currency just like the u.s. dollar. now we offer it to any airline if you would like to. when it came out, it it was at 119. >> thank you so much for joining us. we will let you get somewhere with more air conditioning. thank you very much. the words of the airbus coo. the euros to strong and that is one of the biggest problems. let's get back to the other big theme. are.g to decide where we -- let's talk about janet yellen. you are looking tired already. the new yorker says, a very dovish town. are we going to have to stick with lower rates? >> she will not move away from this dovish position at all. >> managing the transition from not. two things like forward guidance and liquidity withdraw. the first rate hike is the main obstacle she has to overcome. i would like to look at things from a currency perspective. cover on thewill dovish side as long as they can so the transition is a smooth one and then the question is, how rapidly did they miss

. >> did you look at easyjet?tell you the >> i have got to ask you the question. 340's? do this with would work better with a 330? >> we are exploring the fleet, y es. a 340 would not be the right model, i agree. we're looking into a possibility of 330. there are other scenarios, no 340's. >> interesting. safety is a story right now, post-mh17. simone, do you think we need strict rules in terms of flying ever conflict zones? tim clark at emirates has talked about this. do you think we need rules across the board? group witha global airlines to have common rules. with ukraine, it was the first time something like that happened. icao and airlines are working fast to come to a global rule. >> pleasure speaking with you, simone menne from lufthansa. cfo of lufthansa. back in the couple minutes. ♪ >> you are watching "the pulse." sharesspirito santo taking a beating. coming back a little bit. that might not be the real story, could be that the subordinated debt holders will face the real pain. let's get the latest. dow

elsewhere in the airline space, easyjet taking off this morning. you can see the shares popping nearly 3% currently. the company reported a 10.1% jump in traffic. that means the firm carried 6.1 million passengers last month. let's move on to asian markets. it has been a decent session across the board. the msci broad index of asia pacific says that japan has reached its highest play level. the individual markets are mostly firm. 24r the chinese stock market trading lower by 0.2%. the japanese stock market respond to go that push we saw in the u.s. dollar. it's finally arrived. many people have been waiting for. hong kong drifting higher, 0.6 of%. don't forget some of the commodity prices that have been patchy in the last 4 hours. on bond markets, this is particular across the board. there is a bit of movement at the short end of the curve in particular. the european mblths here, though, as we saw, mario draghi kept all the measures on the table. that meant we saw some lower yields across the board this morning. 11.27%. 1.6. the italian market, up