easyjet tumbles on reports of lower quarterly revenue. welcome to "the pulse" live from bloomberg's european headquarters in london with me, manus cranny. let's take a look at your risk radar, top of the hour on "the pulse." stoxx 600, over the past four days, we've managed to eke out a gain. the airline stocks take us down. levelsyen retested its that we saw on the sixth of june. we may see more stimulus. the stoxx 600 close down a four-week high last night. check out lufthansa. the numbers are going to be below the previous years. just looking at the stock performance, 10.22 at the moment, we've been falling for three days. the last time we saw a rout like this was the 14th of june. easyjet sales came in at 4.2 million. revenue slipped 8%. they are saying the brexit vote, the attempted turkish coup, many challenges. easyjet down 4.3%. time for a first word check. nejra cehic is with me. nejra: good day, manus. turkey has imposed a state of emergency as the government pursues those responsible for a film to recoup. -- for a failed milita

we're hearing this from easyjet as well. are big corporate that deal of tourism, but also business people popping around the world, across the north atlantic. it is just economic activity. how do we get economic activity going? >> first of all, look at the numbers in spain and italy. i think there will be some kind of company specific issues as well. even consumer confidence is not that bad. even in the u.s., we see relatively decent growth in consumer spending. i think we have to accept the fact that growth is going to be weaker. we have to accept the fact that we should not react to a couple of numbers because growth is weak, but not absent. what do need to do about -- and i just want to find this chart and put it up on the screen. what do we need to do about this? this is lending growth in europe. and it is just not picking up. this idea that you can throw credit at the market and you can use it just doesn't seem to be working. >> well, you need to have demand. if you have demand, you have to have confidence. confidence i

fell aty revenue easyjet.sh discount airline says volatility will have an impact on the key summer travel season. terrorist attacks in europe and north africa have deterred tourists and business executives from traveling. easyjet will also be impacted by the plunge in the pound after the u.k. voted to leave the european union. voteother sign the brexit is having an impact on the economy, in june retail sales had their biggest drop in six months. they fell 9/10 of 1%. some responses were received the week after the eu referendum. watch reported its lowest first-half profit in seven years. earnings plunged more than 50%. hurt by falling demand in hong kong. the company makes omega watches. latest business flash. coming up, our ecb themed battle of the charts on a day the central bank keeps rates unchanged. i will be taking on julie hyman. ♪ >> welcome back to "bloomberg markets." time for our battle of the charts, where we take a look at the most telling charts of the day and what they mean for investors. you ca

easyjet falling and air france as well. is from black rock.ou are on the credit side of the equation. the appetite for corporate debt. how much do you factor in these one off events? michael: very good question. i would almost say this morning, similar to the brexit, the market reaction is what i would describe as reasonable. wouldected certain stocks fall. this is what we expected. i think it is a factor. a the credit side, we have much longer perspective focusing of thesustainability business. i would not overstress what it means for our portfolios. i would say that on the fixed income side, we have the additional element -- the ecb is in the market supporting the non banks. and does have an influence the market reactions which we are seeing are relevant but not dramatic. they are about right. on the fixed income side it will be slightly more muted. guy: back towards safety. that is understandable. does this further, to your point about the fixed income, is this into theeason to pile safety of the fixed income environment? michael: everyone

other airlines have issued profit warnings including british airways and easyjet. they reported losses of 48 million euros in just four weeks, largely due to brexit. and the rising cost of fuel. >> currency volatility as a result of the u.k.'s decision to leave the eu continue to impact consumer confidence. >> easyjet shares have lost more than a third of their value so far this year. other companies are facing similar difficulties. this is one of the most difficult periods airlines have seen in a long time. >> two traders at hsbc have been charged with fraud. >> the global head of foreign a formertrading and colleague have been charged with using insider information to profit from a $3.5 billion currency transaction. it is part of an investigation into manipulation of global markets. hsbc and its competitors have already paid more than $10 billion in civil penalties over the probe. >> a story of how a youtube video led to a billion-dollar takeover. >> this has to do with a company called dollar shave club. it was introduced to the world in 2012 with a tongue-in-ch

easyjet's boss said the drop had made fuel, which the company pays for in u.s.dollars, more expensive. >> current volatility as the result of the u.k.'s referendum decision to leave the eu as well as recent events in turkey and nice continue to impact consumer confidence. clement: other companies are facing similar difficulties. says this is one of the most difficult periods they have seen in a long time. will: u.s. treasury secretary jack lew visited greece. he met with prime minister alexis tsipras. greece is negotiating its third bailout since 2010, trying to persuade its international creditors that debt restructuring should be part of the 86 billion euro deal. lew said that athens must continue privatization plans and financial sector reforms. the reforms that have been made have been very important. they're not just important because it was necessary to get agreement with the institutions. they're important because it has helped to rebuild the foundation for a strong economy here in greece. and putting greece's debt on a sustainable path is critical to gre

easyjet and lufthansa coming out with negative commentary and numbers.asyjet saying ticket prices are continuing -- depressed ticket prices are continuing. there has been a lot of turmoil in europe between the attack in turkey --he coup in the attempted coup in turkey. both of those stocks trading lower. coming up next, shares of pantheon are rising on the trading day. maker.g ingredients we'll speak with jim mullen next. ♪ nejra: you're watching bloomberg markets from london. vonnie: this morning shares of trading debut.ts shares opened at $25 after the ipo come up more than 16% at before 54. jim mullen joins us for an exclusive. congratulations. happy with the increase in price or sad he left some money on the table? jim: we have 20 more secondaries coming somewhere over the next few years. we are happy we opened at a good price. investors saw a nice uplift in return right out of the gate. we are very happy with how things open and the kind of interest and volume we have seen. vonnie: was it the right decision to put off the ipo last year to go now? ji

easyjet, thomas cook, air france, klm among the biggest decline is. the euro is up against the dollar today, the best run since may. the yield on the french 10-year is up by a basis point bond yields rising in germany and the u.k. stocks and bonds are lower. yields are rising this week in france after falling for three consecutive weeks. the record low for the 10-year, .73%. right, let's get to bloomberg first word news. nic nejra: china's economy stabilize. gdp jumped 6.7% from a year earlier. industrial output and retail sales could beat estimates while investment slow. the credit surge has been a prop to growth. may will visit edinburgh on her first official appointment outside london since becoming uk prime minister. she will deliver a pledge in an attempt to dampen renewed calls for independence following the brexit vote. more fed officials have played down the impact of brexit on u.s. growth. the atlanta fed chief says he except -- expects negligible near-term effects from the e.u. vote. >> my own sense is the impact on the u.s. economy probably

a 40 had easyjet seeing probability and issued a warning. iag announced a profit warning.king capacity in which a scheduling. some people thought they would wait until the spring. what you make of the capacity withdrawal? john: between 50 and 70 aircraft on the ground -- challenges of an financial crisis. number oneabout -- that is their biggest base. have more than 60 aircraft based their. the u.k. market is one of the most important markets in europe. it would not close any roots. -- any routes. they are on the case. what specifically it has to do with the recent exit events, it is not clear. caroline: it seems that brexit is the one paid the most lipservice when it comes to travel. after a weekend of reeling from three individual terror attacks, many of them not always related , butparticular viewpoint still the fear of terror is driving higher. how much is that something that is being affected in to the future of travel? john: it is a set of reality that we are facing these kind of challenges more free glee today. been masters long at managing crises it would go back t

it comes as big-name businesses, such as easyjet and vodafone, could be affected if the u.k.ves the single market. they fear a race to the bottom. intent -- nod new intention of acting like david cameron in 2012, when he said a red cargo was laid out to investors wanting to escape a french tax hike. >> i do not want to have a reverse red carpet. i did not appreciate his red carpet remarks, so i do not support a reverse red carpet. brexitr: there are also addictions. christine lagarde says they expect be british gdp to be thanen 1.5% and 4.5% lower if it had remained in the eu osborne said he believes there will be an impact of the downturn, again, uncertainty about the looming eu. from the mergingng in favor of in a deal that was agreed earlier this year with deutsche boerse. what one person had to say. >> they want to come together and marry, so to speak, but there are legal uncertainties. we do not know that the britons are leaving. i do not believe that they are leaving. but it makes no sense to have a london headquarters now. until july 12,be heen the torture -- the deuts

. >> however, easyjet says for the moment it has no plans to move its headquarters from the u.k. and may reconsider, depending on the outcome of u.k.-eu trade negotiations. stephen: france is hoping to attract some of those companies that might leave the u.k. over brexit. david cameron once famously said he would roll out a red carpet for any company that wants to leave france over high taxes. speaking this weekend, the french prime minister -- the french minus -- the french finance minister said he would not be looking to a similar offer. >> there are some advantages to being in london, but at the same time they were in europe. at the same time -- they are no longer in europe now. that warning. decision particularly in the financial services sector. i do not want to raise the specter of a reverse carpet. i do not think it is appropriate to talk of the reverse red carpet. cyril: finally from you, a box office triumph to the sequel for "finding nemo." has had finding dory $42 million of ticket sales. it has grossed almost $540 million globally. it beat its big rivals on the fourth

lufthansa, easyjet, others as well.what is happening with the long haul story affected by strikes and terrorism. long-haul is affected by what is happening in europe. easyjet describing the operating environment as the most difficult in 10 years. air france down hard. also, the manufacturers of trucks are talking about a slow down. volvo warning about this. to movef that we use stuff and people, they both slowed down. is that a global macro concerns story? i think so. the consumer guy on air travel in america -- brian was on the other day -- he is adamant. it has slowed down. there is no question. guy: you think about what is happening. you aren't seeing as many people getting on airplanes. that is a negative factor. some of that will be on the north atlantic route, we talked about the brexit affect. if truck manufacturers are not buying as many trucks, that is something i would pay attention to. tom: the debate over the extended runway in heathrow, that sounds like a first to do for prime minister may the jumpstart inf

after what we have heard, gloomy statements from easyjet and lift anza paid -- lufthansa.se reality of terrorism events occurring having a negative impact on the aviation sector. we will talk to a representative ryanair,.k. time from about how that business is coping with the brexit conversation. all of that to come on countdown. g-20 finance ministers have reiterated a pledge to use policy tools with confidence following a summit in the chinese city of chengdu. our chinese correspondent is there. what were the concerns there? front and center was the global growth pitch, a major concern of policymakers. just how to tackle it, more fiscal support, particularly in light of the brexit in which the future means is those negotiations start and also, concerns now around rising anti-globalization sentiment, policy makers seeing that in brexit vote and donald trump. i put some of these questions to came,esident jim young asking him about his aspect -- give good wanted to information to people for a long time but unfortunately we keep having to downgrade. is understandable in this

thomas cook, a core, easyjet, they are a big jo -- decline. we often see quick flip backs. worth noting. today,pse in profit 50%-60%, analysts expected a 22 drop. sales missed estimates as well. ands markets like france markets like france are going to be hurt even more. shares down even more. the final chart of the week, instagram, this shows you everything. the best week since 2000. there was a week earlier this year that was better, but let's forget that because it spoils my narrative. we will continue to watch the pound. in the u.s., stocks little changed in numbers but directionally they are all down. investors looking at a weekly advance in which nine out of 10 industry groups are higher. the exception is utilities. for more, let's check in with abigail doolittle live at the nasdaq. abigail: a little bit of a breather, 10% rally out of absolute breaks it bottom on june 27. --it of a reserve reversal. biotech's are gaining. cognizant technology down 2.8% ,n sympathy with its competitor which guided u.s. revenues down for 2017 in the u.s.. easier i.t. outsourcing compan

british discount airline easyjet will require operating rights of another european union state aftereks vote. to move is an attempt guarantee unfettered access to eu markets even after the u.k. leaves. cbs says it will pay the federal government $3.5 million to settle claims out of stores in and massachusetts. settlement isthe one of the largest involving prescription drugs in massachusetts. that is your business flash update on this friday. joe: investors are still assessing whether last week's brexit vote marked the beginning of a domino effect. this morning, james bullard talked about whether or not we should expect a longer time of lower growth. guest: i have got it at 2%. the growth rate for the whole post 2007, 2009 recession has been about 2.1% in the u.s. any cyclical dynamics are probably worked out of the system will probably continue to grow at 2%. i don't consider that pessimistic exactly. i think you could transition to a higher growth rate but you will need higher productivity growth. zika data brexit -- >> did brexit alter your outlook? brexit will not have a big impac

. >> we had the same william easyjet which were correctly marked down. you had a great rally. now you see people waking up. this is about terrorism more than brexit. so as far as the uk stocks are concerned, if you can't see growth going forward, you really need to assess whether you want to be in these stocks or not. >> all right. rob, stay with us. i also want to get your thoughts on the banks too. that is founding partner of libra investing service. meanwhile get in touch with us. you can e-mail us. street signs europe @europe. i'm at nancy on cnbc. get your comments on now. we have 40 minutes to go. we will come back to you if we can and still to come, we will tell you, which company has been compared to a victorian workhouse. find out more after this short break. >> good morning and welcome back to "street signs." we see the dollar just.3 higher than japanese currency. i was was the yen we were watching after speculation helicopter money was off the table, sending the yen rallying initially. >> reporter: good morning nancy. you're quite right. highlight japanese equity sk

easyjet and lufthansa, very bad days for these guys.syjet in particular being hurt by terrorism fears restricting travel. but also raise it. they are worried they may not be able to travel as freely around europe as they used to. lufthansa lowering its full-year forecast. watching this group as well. busy day. jonathan: coming up, mario draghi and the ecb less than 35 minutes away. we get a decision on monetary policy. that is all of five minutes later with a news conference. we will take that news conference right here on bloomberg. this is bloomberg. ♪ ♪ jonathan: this is bloomberg from new york city for our viewers worldwide. to the fx market we go where there is a stronger japanese yen. this after an interview broadcast today with governor kuroda of the bank of japan with bbc's radio on helicopter money. apparently ruling out helicopter money. reports suggest that interview was conducted in the middle of june. that is why you see that retracement on the chart. i want to bring in someone i know very well in london. i want to start wi

yesterday, we thought easyjet and air france under pressure, caroline.ee hopefully, when we talked to heathrow very shortly, if the arnings we are seeing now is feeding through into that story. he will be joining us very shortly. so, the company reporting a 1% ase in first half revenue 35.7 million passengers use the airport. the company said it has got what it takes to get permission for take off, i.e. to build another one might. let's speak to the ceo of heathrow, to know joins us from heathrow. let's talk a little bit about what is going on. let's talk about where we stand post-brexit? any impact you have noticed so far? >> first of all, i want to say what a fabulous set of results we are seeing today. that is all coming through in a very strong financial result. it is too early to say what the impact will be from the vote to leave the eu. we have not seen an impact on the passenger volumes. it will probably take three to six months before we see that. in our business, we are very resilient, even with the financial downturn in 2008. we did not see a s

the latest on a big airline here called easyjet saying they want to move their legal location headquartersoutside of the uk. finally heather, no less a voice than x prime minister tony blair where wade in an op-ed today in one of the newspapers, he warned of dire times ahead for the uk. his quote, the future of great britain is at stake. again, watch this space. heather: heavy stuff. greg powell can't live for us, thank you. jon: video captures the frightening moments when a man attacks several people on a denver downtown industry and mall with a long piece of pipe. why police say it wasn't the first time the cause trouble that day. plus, a deadly accident causing the government to take another look at tesla's autopilot feature. also, we want to hear from you. in light of bill clinton's meeting with attorney general loretta lynch, do you think he's helping or hurting clinton's presidential campaign? our live chat is up and running. go to foxnews.com/happeningnow to join the conversation. >> for the strength and energy to get back to doing... ...what you love. ensure. always be you. mother

easyjet warned us that they are concerned about the impact of brexit in terms of the impact of the travelingich will be a challenge for the whole industry. let me take you straight to the luxury goods numbers. operating profitability one point up versus the first half of 2015. this is a red headline across the bloomberg terminal. hermes,uarter sales for they beat first-half profit year on year. levee break it down in terms of second half total sales, which rose by 8.1%. the market was looking for a rise of 5%. first-half operating profit should be higher by around one point compared to the first half of last year. maybe things aren't just as doom and gloom at the upper end of the global luxury market. futures -- dollar-lira, lows at 3.0654. stay there? these are your futures. lower, asianated stocks made their highs, london down by 2/10 of 1%, terrace down, dax down. the stimulus will be back on the top of the radar. four out of five s&p 500 companies have reported results that beat. let's have a look at the bond board as well. equity set for lower opening, things aren't so bad. the japanese

easyjet and ryanair are scrabbling to see what they will do.ediate panic or fear in terms of travel, so -- tom: do you see a new discipline? is there a new executive discipline among the airlines? brian: discipline as in -- tom: budget discipline, cash flow discipline? are they going to be adults this time around, unlike before? brian: they are. airlines are producing a huge profit and spending wisely. a hugejust announced investment, finally, in their business-class products. i think airlines are seeing that there is a slowdown, and instead of getting caught and getting killed profit wise, i think adding more premium economy so that they are not left standing holding the falling knife, of falling business class fares. they are going to meet more in the middle. francine: is it fair why i ask if the u.s. carriers are so behind when it comes to transatlantic travel? tom: that would be true, francine. they have a shortsighted approach. it costs a lot of money to invest in your product. it is a hard investment, especially when the economy is down,