with klm, the group is a expected to have positive earnings. into account take klm, air france will be losing money for the sixth consecutive year. >> walk me through the events that face air france. what happens in the next quarter ? what is the ongoing story? >> the main concern is how will bookings be affected for the fourth quarter. whether the strike has affected the bookings and also psychologically the customers of air france-klm. the second fear is also the impact of the sluggish economy in europe. you have fears about the ebola outbreak. the cfl is saying the ebola outbreak is not having a significant impact. there has been a decline towards some eastern and western africa destinations for air france. in the long-term is about competition from local carriers, where the strikes started in the first place. some people from the unions of pilots are saying that you can born a local carrier but it is hard to become one. >> thank you. caroline connan from paris on air france. >> and unmanned commercial rocket carrying supplies to the interna

. >>> air france klm is one of the worst performing stocks in europe after the carrier strikes force to issue a profit warnings. >>> tesco is upgraded by hsbc, sending its share price over 3% higher. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> and as we said at the top there, we're at a 1 1/2 month low in european equity markets. the stoxx 600 is off 0.5% today. the stoxx 50 off a similar amount -- well, actually, it says roughly flat. let's look at those individual markets. if you would think looking at the sectors, the likes of autos, the likes of travels, utilities is the only outperformers. the ftse 100 is out 0.4 pergs. germany is down 0.6%. france off just a little bit. let's look at bonds. panic selling in equities yesterday also meant panic buying in bonds. that follows the imf forecast only slightly downgraded its global growth outlook for this year and next year. nonetheless, a flight to safety. u.s. treasury down 2.34%, quite a significant move. gilt down a lot, 2.247%. germany only moved a little bit, but noneth

air france klm is saying they're going to accelerate cost cuts with the new plan.tho said earlier this the strike has probably cost one year of the restructuring plan. one third of the group, the earnings should still be positive, but air france should for the losing money sixth consecutive year. >> the problem will extend beyond the third quarter. >> the main concern is how much bookings were impacted for the fourth quarter and for the winter. hurtirline is say it may fourth-quarter bookings. you still havem very tough competition, which is why the strike started in the first place with air france wanting to add planes from all the airports in order to compete with local carriers. did win one of the battles during that strike. they forced the airline to abandon a project for europe. did not manage to get what they wanted in terms of contracts, so they did not sontain a union contract, the pilots have hardly lost confidence in their ceo. some of the union members are you can be born one but it is hard to become one. >> 11 minutes past seven. we are going to be spea

let's see whether air france/klm is turning up in the left-hand side. the dax. a little bit of buffering going on there. i will take you into this zone here. basf. i interviewed the ceo. he said he had never seen such a drop in gas demand in his numbers. chemicals business. they are cutting their 2015 targets, their profit targets. 12 billion euros. originally they said it would be 14. net income, tha tmissed. they are cutting the price of oil to $105. he would not speculate on where the price of oil was. when it comes to luxury goods, puma is helping the number. thanks to bloomberg intelligence, i can tell you the luxury sales are lowest in five years. china is stabilizing. yfl is doing quite nicely relative to gucci. luxury sales are at a five year low. volvo. when it comes to getting a grip on your costs, take a machete. these guys are cutting their costs by an. they're going to cut spending by another 10 billion kroner. truck orders are rising. and truck orders in north america rose by 73%. maybe janet yellen is right. a 3% growth rate in united states of am

this while the big competitors, air france-klm, the biggest player in europe, has been hit by strikesfit slumped in the third quarter. lufthansa announcing its second profit warning in five months. homegrown crises, strikes and the like. external, political crises -- ukraine and syria. third-quarter profit manages to gain so much and they raised therefore your target. traffic for this year for iag could rise as much as 77%. >> how did they outperform? >> it seems to be a question of discipline, or so brags the chief executive. it is arguable that they have had all their crises ahead of the curve. they were facing the discounters quicker thanyanair the likes of the funds a. they had to react faster. iberia, theyk over started slashing jobs. now that unit in spain has turned a corner and they are posting a profit. they struck more modest pay negotiation tactics and were able to get the strikes done with and start renegotiating with the pilots. they scrapped their worst-performing operations. what is really interesting is they have added in terms of capacity while the rest of the big com

shares of air france klm trading 2.2% lower. and still on the french market, the fourth quarter revenues because of stock market continues despite this. the company beat expectations for the third quarter net profit, up $72 million the outlook is weighing on the stock, down 6.5%. and it was widely expected. the french cable company has launched a 4.7 billion euro capital hike. the hike is intended to finance the acquisition of asset bark which is the telecom unit trading 2.3% higher. >> it's interesting. thanks. every bit of news flow we've done in the headline seems to be concerns with deutsche, next with numbers, and yet had market has done really well. and, of course, the comments made. it's love back. we've talked about the macro quite a lot. let's talk about fundamentals. both european and u.s. financials continue to show fundamental improvements. what does that ? >> you've recently the stock buybacks, the shareholder friendliness, the assets for equities it's a bit more challenging. and it's a bit like going through a mine

. >>> air france klm has taken a 460 million revenue strike. the airline said operating profit almost halved in the third quarter. but the big shock of the morning, sanofi has announced the departure of its ceo just a day after playing down speculation over a potential exit. wilfred, the stock down about 4% in today's trade. >> yes, indeed. it was down almost 10% yesterday. stephane joins us on set with more on this story. stephane, the ceo had a pretty good record, yet today a unanimous vote to oust them. >> it's not a problem, to be honest. the company about five years ago, the company had an issue with the pipeline which was very poor. he made a series of acquisitions and that really forced the pipelines. but that's not at issue any more. he also managed rather well the transition with all this patents which expired in the last few years, managed to first of all put in the market some new product. the market shah shares in general, so being under share price was much higher. the problem was the management side, trelgzs with the board. and, a

compare that to the profits that went tumbling at rivals air fr ance and klm.it warning and five months we had at lufthansa. they're outperforming the market. profit up 31%. the full-year forecast -- raised. we could see profits up 77% compared to last year. previously, they thought they might climb 64%. but they are managing to get a grip of prices. they have got fuel down 7.5%. nonfuel costs 4 down.%. down 4.5%.osts they have 25 analyst saying buy. basically will wash fast forward to the process. he came through the end of the problems he had with the iberian unit far faster than his rivals. whilst the continental europeans are dealing with a weak economy, b.a. has been managing to tap some of the strength by expanding b.a. > >> capacity. >> rbs could be a strong performance. >> iag called higher. at last, they returned to a profit. it is the first time we've seen a third-quarter profit for rbs in three years. the u.k. economy has helped, helped barclays yesterday. fewer profit concerns. fewer money they have set aside. rbs profit, we see close to 900 million