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, 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

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

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

iag 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

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

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

willie walsh is the boss of iag. good morning.at what happened in 2001 and 2009 and both of those events represent structural change for our industry. people who think this may bea industry. people who think this may be a temporary impact need to look back and see what has happened previously. i think this is by far the biggest crisis we have ever faced and clearly requires us to ta ke faced and clearly requires us to take very quick and deep action, not just to survive, but to ensure we are ina just to survive, but to ensure we are in a position to be competitive going forward. i will come on to some of the things you are doing to try to mitigate the problems in a minute but let's talk about the state we find ourselves in. when are you expecting planes and start flying again in a meaningful way? when will you be able to get passengers back on board? we are hoping —— we were hoping july. our original plan was that we would fly about 50% of our capacity in july. we do about 20% so we are seeing a much slower and more gradual build—

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

again, i'll go back to what iag said a momen one of the lessons is, we have to invest in plic health, and we have to do it at the state level, at the local level, and we havto do it cerinly at the federal level. and i hope that's one of t ssons that comes out of this. the other lesson i hope arat people realize and i think bothes know this now, and that is we cannot be dependent on china. d we cannot endent on other countries to make everything that we use for medicine or all the equipment that we use. >> governor, i mean, s ebody who has relied on your public-health experts and who sa we need to really invest more in public health, how did the attacks -- the ite house attacks -- against dr. fauci strike you? >> well, i don't pay a lot of attention to it. i mean, the doctor's still out there and still talking, and people are listening to the doctor, so i- you know, that's... i can't explain it to you.i n't know what's going on. and, you kno again, we nced to look to medical sc we need to look to professionals how we handle that, everything. this is what we tried to do in oo, base ever

iag is down hard. easyjet is down hard and dragging the european equity market lower.llar, on nearly 1.18. the stoxx 600 is little bit of an outperform or, tech is doing relatively well, but the gold story is front and center. alix: really front and center and

iag trading strongly.ill 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

iag have -- the last country i lived in was the night he kicked them in the last city i lived in was london and city con was the mayor of london. when i first came, i said to myself, well, thank goodness i'm in america. saddiq khans can't come to america. lori lightfoot, bringing saddiq khan to america.o if the president keeps a handle to it, he's assured a victory in november. joe biden on any of the stuff, he's certainly not in control of his own party, i remember when they were campaigning on please don't make me vote for joe biden on the political left and those are the tiktoks, it's a mess. it's a total mess. >> laura: sara, when we see the political landscape as its unfolding this election season, covid is dominating the minds of so many people, thankfully increasingly lower mortality rate, the more people we test, i think people have got to look at what they are seeing in new york, in chicago, in portland, in seattle, and say is this -- that is all blue leadership. that's all democrat leadership. they refused to enforce law. they refused to do it, and theyf demonize the very p

dbankmount of -- swea down byinterest and iag 4% after some interesting reports about what they are doing, it is "surveillance." this is bloomberg. ♪ ♪ >> we are live in brussels as the european union hashes out a recovery plan. watertch have poured cold on the prospect of a deal getting done today. >> i would say let's -- less than 50%, but you never know. >> what's going to change between now and two weeks if there's another summit? >> that's one of the questions we still have to answer. i don't know, but we could still get to a