this is causing frictions with the other side of the family, klm's own pilot union has written a lettersgusted with the french rhetoric. >> but they still need to rein in cost, though. >> cost is the thing. they made a small profit last year, but a big part of that is on the back of oil prices. they don't have the margin which we see for example in ieg. they can't invest for long-term in new equipment. and we have seen the ceo in a recent trade interview saying air france was becoming smaller and less relevant in the industry, but it would not come to grips with the problem unless they figured that the government would step in. >> it is interesting you mentioned klm and the relationship there. some of the air france pilots were asking for flights to be transferred to france in order to give air france more work. both governments said this problem is not transferrable. it remains with air france. how do you resolve it if the government isn't going to step in and say, hey, how are we going to solve this? >> that is a fundamental change. we have the currency urge for the industry. there's

maybe klm is not the best company to book four. klm is criticizing their french counterparts now, it is because they made major concessions. we raise the retirement age from 56 to 58, and we accepted the zero pay raise until 2017. catherine: these changes have lower klm's expenses and raise revenues. onlineve launched an petition targeting air france pilots. ande ask you not to strike we asked the pilots to talk with each other. catherine: air france ceo says the pay cuts would cost airline 5 million euros each day, a drop in the bucket compared to the two-week walkout in 2014 that cost the group nearly 500 million euros. stephen: there are other strikes affecting airlines around europe today. flights.anceled 240 that is over a pay dispute. the airline says someone hundred thousand passengers have been affected by the strike, which began on friday. pilots working for easyjet in amsterdam are also on strike. that is not expected to cause disruption to passengers. to the market, where volatile is again the word of the day. investors

in corporate news today, air france-klm shares have been climbing after they say the company's two mainions have cancelled their strike last week. they had plans to walk off the job on june 24th and june 27th. >>> and tesla made a bid for the installation firm. phil lebeau has more details. >> shares of tesla under pressure after the electric car company announced after hours that it has made a bid to buy solarcity, $28.50 a share. that comes out to $2.8 billion. shareholders will have to approve this deal, but if it goes through it sets up what is an interesting proposition for shareholders of tesla. are they owning shares in a car company or an energy company? after a conference call after announcing this offer, elon musk said, look, we look at ourselves as a sustainable energy company. with the solar company, if the acquisition goes through, then you have energy in the factory that tesla is building just outside of reno, nevada. again, the bid to solarcity comes out to $2.8 billion. $28.50 a share. those shares are up more than 10%. meanwhile, tesla shares trading under $200 for the

and in amsterdam, an entire grounded klm airliner was for rent.estimated at $3.3 billion. just this week he and his cofounders signed up for the giving pledge, once again following the guidance of warren buffet. >> the giving pledge asks people to pledge morally not legally very wealthy people will give away at least half of their money if not in their lifetime then at death. what they can do can be huge. >> for now at least chesky is one of the richest young people on the planet. he and his girlfriend travel the world together. so i had to ask -- when you travel do you stay with an airbnb host? >> of course. i just came back from tokyo. we did a week vacation. >> do they know who you are? >> i try not to tell them who i am because i want to see the experience that other guests are getting. i don't want to get a special experience. sometimes they figure it out. >> coming up, a fighter and a father. >> i said, hey champ, can i get a picture of you with laila? >> remembering muhammad ali. rn h back: the citi double cash card. how do you choose a mcp

and in amsterdam, an entire grounded klm airliner was for rent. success, chesky's personal net worth is estimated at $3.3 billion. just this week he and his cofounders signed up for the giving pledge, once again following the guidance of warren buffet. >> the giving pledge asks people to pledge morally not legally very wealthy people will give away at least half of their money if not in their lifetime then at death. what they can do for humanity beyond what they've done in their business, can be huge. >> for now at least chesky is one of the richest young people on the planet. he and his girlfriend travel the world together. so i had to ask -- when you travel do you stay with an airbnb host? >> of course. of course. always. i just came back from tokyo. we did a week vacation. we stayed in two different airbnbs. >> do they know who you are? >> i try not to tell them who i am because i want to see the experience that other guests are getting. i don't want to get a special experience. sometimes they figure it out. >> coming up, a fighter and a father

and keep an eye on klm.s is a very volatile stock -- we could see it fall 1% or 2% because of the warning that they will be losing millions, 27%, more than 80% running on monday, that within the euro 2016, this is not a good time for your pilots to go striking. air france could drop on the open amid the financial ramifications. guy: thank you very much. caroline running is that the stocks that paint a broader picture. looks like europe is going to open down by around 1.2%. asia has been softening, reacting to friday as much as monday. the open, next. ♪ guy: welcome. i'm guy johnson at bloomberg's european headquarters in london, alongside matt miller in berlin. we are moments away from the start of european trading, an d matt has the morning brief. matt: the boj's brexit problem. andyen surges, stocks sank, jgb yields hit fresh record lows as traders seek safety ahead of the u.k. referendum. will the bank of japan act this week? and with just 10 days to go until the vote, the pound continues to feel the pres

this is air france klm naming a new ceo. -marque.an london.32 in let us get the guy johnson with the latest market reaction. guy: you give us some details. but we will see some stability may be creeping into the markets, gusy. the bid offer is still absolutely massive, but the british pound settling around 134. deutsche always bearish, for quite some time with what is happening with cable, 115 handle on cable in 2016. i think the originally had it further out, so that kind of gives you an idea of bearish, but at the moment, it looks like we are settling out. you can see this very clearly on your gmm, settling out around the 134 level at the moment. as i have been indicating throughout the morning, a big party saying to everybody that will listen, do not trade with us. we are not taking losses, not doing anything. if you can avoid trading, do. the front end of the u.s. curve, unsurprisingly seeking safety, maybe indicating the given the geopolitical story that now surrounds the markets,that it makes the fed's job even harder.