inditex has been making its product much closer to home.ndustry used to go all the way out to asia. inditex has a big manufacturing base in spain and portugal and morocco. other companies have tried, but it is a cultural issue. it takes a long time to change the mindset and buying from asia will come six months down the road. the other thing is they do not stay on their laurels. have all out rfid, they much better inventory now than anybody else does. they can do that because they've of much stronger balance sheet. they can import to invest of all this and they keep staying invested ahead of the competition. comparisons are often made with h&m. they have that longer line supply chain story. what can i take away from understanding how h&m is doing versus how inditex is doing. -- h&m issuspicion coming back. that price point is healthy in terms of a lower price point. that will have its appeal. you will see zara will have more flexibility. zaraomparison goes beyond and h&m. both of these companies are doing considerably better than macy's or

anna: just a quick update on inditex. when we were going to see the first ever loss on record, and we do. first quarter loss coming through at 409 million euros. the first loss on record we are informed. we also get the numbers on sales. inditex delaying its dividend for 2021. let us get back to the picture across these markets. asian equities are mixed. investors take stock of a rally that has seen the s&p 500 wipeout losses for 2020. -- hedgery had fun fund managers as it has confounded those who were doubtful. >> if there was a franchise for humble pie, there would be a mile-long line. anna: big names perhaps eating humble pie. let us get into the conversation. worth remembering of course we have seen u.s. stocks back in the black for 2020. nasdaq in particular doing very well. even the broad measures not looking too bad for 2020. emerging markets lag behind. is that something you see catching up or is underperformance justified? >> underperformance is justified to some degree. if you take u.s. stocks and use contract

inditex has reported a loss. first time they saw profits fall in negative territory. seeing sales plunge nearly 50% but saw online volumes surge forecasted web transactions would make up more than a quarter sales by 2022. also earning a dividend and revealed inside sales in south korea had normalized >> joining us just outside with steve. what do you make of the results and what is the read across to the broader retail space >> we are looking backwards. same with the employment report. slightly better. we all knew it would be a loss as well. the biggest share holder who owns 59% of the company has decided some form of dividend will be welcome. that will be welcome to the sixth richest man on the planet. they are looking backwards this is a huge effort to get back on track and to get a lot out of the stores and back into the warehouses so they can be sold from online distribution. the beauty of the model is that their warehousing is done in the store so you don't have large amounts of stock just sitting there. they can get it to the customers early as well. they revers

number comingt through from inditex. the story around aerospace is critical. french government unveiling planrel plan -- a bailout to rescue its aerospace industry. the package including the extension of a number of different factors, including part-time unemployment subsidies , a specific investment fund for the crucial supply chain, state guarantees in terms of what they are seeing in terms of the orders from the airline, and incentive to accelerate the race towards hybrid planes. that feels like an awfully long way away. there also incentives in terms what is happening from the defense sector as well. richard aboulafia joins us from the teal group, where he is the vice president. thank you indeed for bringing us your thoughts on this. down a similar program a few weeks back. what does this program look back -- look like and how important is it for the european aerospace sector? richard: it is dork by the magnitude of the challenges ahead for the sector. it sounds like a lot of money, but if you get down to it, the business of aircraft manufacturing, just je

say, in the crisis in 1991, and you saw it again in the asian crisis in 1997-98, and you saw that inditexco .nwinding in 2001 and 2002 and you saw, obviously, a lot 2009. hopefully pimco will thrive out of this market and find plenty of opportunities to invest. >> pimco is one of the famous winners from what happened in 2008 and 2009. is there a particular area you think will work for you like it did then? is that something you want to focus on this time? emmanuel: i think we bowed very well. -- bode very well. i think one has to be incredibly humble in terms of where we go forward. but i think that there will be plenty of opportunity in the sectors i mentioned, which are a big challenge to buy cheap assets, and also, for most of what we do, to of risky sectors -- avoid risky sectors and actually be defensive in terms of making sure we don't own any things that break. but there are sectors that are quite positive. for example, the housing market is in pretty good shape. the whole mortgage market, if it provides opportunity, is actually pretty steady. we think housing in the u.s. does not

injust over an hourfrom now, the world's largest fashion retailer, inditex, will be reporting its latestany of its brands, including zara, were forced to close around the world due to covid—19. joining us now from wakefield is kate hardcastle from the insight with passion. welcome to you, thank you very much for being with us. what can we expect from these results today? zara are one of the few organisations that had a very clever appeal. it also had very strong engagement with its operations, making their transaction opportunity for online as well as in—store almost seamless. they use local sourcing, as well. so if there was an organisation in that middle market fashion arena that was best set up to meet a challenge like this, i think it is zara. but they have already stated this has impacted their sales significantly, and what it has also done is created a bit of a level playing field, whereas zara has very much rescued the high street against a lot of bland brands, a lot of fashion big names that have really become tired over the yea rs really become tired over the years and not reinv