he is peter elbers, klm chief executive officer. coming up, we speak with rishi sunak, the chancellor of the exchequer. that interview coming up in 20 or 30 minutes, 5:30 am in new york, 10:30 in london, and this is bloomberg. ♪ francine: this is "bloomberg surveillance. we are delighted to be joined by geraldine sundstrom. thank you so much for joining us today. we saw a number of countries in europe -- i think australia yesterday, selling this 100 euro bonds and aunt went out with little success. how much more will we see these type of insurances that influence come to fruition. how much will it mean to yield? geraldine: in terms of issuance, we would like to see a lot of it because the governments are busy , helping the world in this crisis. yields arese the very low and people are desperate for anything with positive yield. so i suspect that you have to go higher, longer, out on the curve to find those yields. however, there should be some caution around this. the amount of supply is relatively big, and uncertainty remains high.

these are your headlines air france backs the bail out of klm. banks lay gains after the feds restrict the dividends and buy backs following the latest round of stress tests. ecb member tells cnbc global members are in a tough spot. >> you have to say the banks now have a difficult situation on the one hand, they are asked to come forward with loans to enterprises in difficulties. on the other hand, they have to do their due diligence >>> wirecard plunges to the bottom of the stoxx 600 as the german payment company becomes the first dchl ever to file for insolvency >> i'm not going to use any of the alphabet soup we hear about. vw, nike whatever the recovery is going to be a complicated matter >> adds that the world has crossed the lowest point of the crisis government council member says central bank has taken the right action. >> happy friday, this is how we are now shaping up across the market as we move across the session. an hour transpired a risk at the start and a little give back throughout the trading day. green has given evidence on the

klm is kind of the bit that can make the money and air france has struggled to do so. does ben smith manage this? there has certainly been a simmering tension there for a number of years, which culminated, of course, in the netherlands taking states -- stakes secretly behind france a while back. over job cuts,n and tension over the fact that klm, as you said, is generally -- air france has struggled for decades to reach profitability. certainly the dutch won't want to be the fall guys here. and be the ones where jobs are areif a number of positions not going at air france itself. guy: i want to tear up what we were going to talk about. we are getting news. it looks as if we are going to get a certification flight for the 737 max next week. big -- cana fairly you walk us through the significance of this? it was announced a couple of days back by the faa, that was a key kind of point at which boeing could say we are going to have this certification flight. in terms of getting this aircraft back in the air, how significant is this? chris: it is certainly significant. they

it is not a free ride. >> that was klm ceo peter elbers. u.s.ors have approved a set of test flights for the grounded boeing 737 max that could begin as soon as monday. let's get our details from our asian transportation reporter. how significant would this be for the max? , wet definitely looks good have been going through a month where we are trying to figure out when the test flights begin. this is definitely a good step for boeing and the max program itself as well. when it will happen, you will have to find out. >> if these flights are successful, how soon could the max resume flight? and what if they are not successful? , but is too early to say the faa and boeing have been going back and forth on the documentations, the revisions that have been made on the software. the changes after the flight itself. the next step would basically be faa making its verdict and how that verdict goes with other regulators around the world. when the 737 max, other regulators will have to look into this as well before they make their own decisions. >> asian

klm,iterate air france, the story that we talked about for a moment. air france, klm, 3.4 billion euro bailout for the netherlands after weeks of wrangling over how much help the carrier needs to ride out the coronavirus. we are going to speak with the cfo of h&m. adam carlsen. an interview you don't want to mess. texas and florida halt their reopening process. the u.s. sets a daily record for new virus cases. trump says these flareups will be put down. this is bloomberg. ♪ matt: welcome back to "bloomberg markets: european open." we are about 48 minutes now to go until the opening of cash trading across europe and in the u.k., we can see futures are positive here. looks like we have more than 1% gains on the cac futures contract. could be more of a risk open in paris. the united states has hit a record number of new coronavirus cases. state health departments reported over 37,000 new cases on thursday. texas and florida halted the process of reopening. both states, texas and florida, politicalican led bellwethers that won praise from donald trump for

some of those stocks there has been a stronger news flow with bail outs of airlines, lufthansa and klm. that factor looking resilient. patches taking space at about .6%. between many bulls and bears that have been on the recovery trade the last few weeks fresh cases of the coronavirus has proven negative for oil and gas. let's look at what safe haven trade looks like bund down minus half a percent on italy, we've narrowed a lot of those ranges we've seen 1.8 plus percent we've had as investors draw on the concerns of the price level now down to 1.37 guild 1.5. a lot of tensions around the trade agreement on brexit. i think this moves lower is telling you that investors do have some april tide the french market is negative. that usually closes the flat line and is positive what is pushing lower. the coronavirus crisis is accelerating structural trends in quality, sustainability, globization according to the blackrock institute. second half, activity restart, policy acquisition and real resilience joining us, chief fixed income strategist at blackrock. investors are wondering if there is

, and they have now gonein operated by klm, and they have now gone in case you were hoping to travele ban on all nonessential travel is in place until the 15th ofjune, so that is next monday. thank you very much. authorities in the us have formally asked prince andrew to answer questions as a witness in the criminal investigation into the sex offender jeffrey epstein, who died last year. the sun newspaper and american broadcasters are reporting the us department ofjustice has submitted a request to the home office which would mean the prince, who was friends with mr epstein, would be required to answer questions by american police here in the uk. our royal correspondent nicholas witchell is with me now. what does this mean, what happens now? it means the british authorities are now obliged to assist the us department ofjustice to obtain answers to questions. there is no question of prince andrew being bundled off to the united states or anything like that. this is a procedure that would take place in this country. he would be expected to answer a series of written questions. if he re

flights no air france klm is received seven billion euros from the french government three point four billion from the dutch government. at with conditions about reducing pollution and keeping job cuts to a minimum and french unions have accused the airline of taking government bailout funds. to benefit shareholders rather than protecting their workforce okay all business and it's a committee thank you very much. what brings you up to date but do stay . to twenty four. what version. but that's what it is today. i'm a the top of the screen and i'm athlete as a result of hussein as a man in the. and the more you know. a lot the- minds struggle is our. most of the- what i want. let me out another but what i what i do the job i'm not sure it's's a lot of we shop which is yeah. we check it out. yeah the is me image of. even a sample to be in this month of a mobile. yeah i know your real mother could work with i'm not. sixty six. soon the divisions masassie death in the softbalall nesbitt acid that'll fit most. i should. he also said. i would want to see what just over shoululd be cicity. n

we already know that air france, klm airline will benefit from logan guarantees.today is directed towards airbus and the hundreds of suppliers, big and small, in france that employee as many as 200,000 people in france. onesurse, you have the big and smaller companies that are struggling because of delayed deliveries and orders from airbus. the minister will introduce measures. we know the plan should include an extension of part-time unemployment subsidies in order to save french jobs. we should also have a specific investment plan to help stateers and the french is ready to guarantee some aircraft orders to avoid cancellations even though those orders may be delayed in terms of deliveries. all of this is going to be tied to carbon reduction omission. 1.5 billion euros will be devoted to develop low carbon transport minister has been talking about developing some hybrid planes for 2027 so they want to take advantage of the crisis to accelerate the green transition. a french official 80 is a plane of me past which first struck as crazy. and then i realized how old

, the recovery story baring the brunt of the selloff we saw in the wake of the pandemic air france, klm up 12% iag shares up 12%. we'll go into the driver behind those as well as the broader demand easy jet up 8.8% those on the back of very strong moves in the u.s american airlines surging 40% after the company said they are seeing a big boost in u.s. flights next month still that stock around 45% since mid-february important to put these moves into context the airlines sector has plunged. >> let's look at iag in a little more detail. al alex cruise saying the company, quote, does not have an absolute right to exist he warned that the parent company iag is burning 178 million pounds of cash researches a week. they plan to cut its work force despite the uk government furl owe scheme reacting well this morning up 12%. >>> shares in lufthansa up this morning despite the airline having been relevant gated from germany's blue chip dax index for the first time ever compounding the particularly turbulent first half of the year the exit comes after the coronavirus outbreak prompted a near total

this will come separately on top of the 7 billion euros of loan guarantees already for air france klms unclear how much money will go directly to airbus. of course, we know that this will help suppliers. as many as 200,000 people in france. some of the suppliers are very strategic. they are also defense suppliers. we expect, for example, some aircraft orders guaranteed by the state. some extension of part-time unemployment subsidies and a specific investment fund for those suppliers. just like we saw with air france, the rescue package was tied to a reduction in carbon emissions so we expect similar measures to be announced for the plane makers and suppliers today. we talked about developing some hybrid claims for the next few years. you.: good to talk to airbus had years of fully booked orders before the crisis. is that not nearly enough to compensate? caroline: we thought so, but it is not because obviously, the situation has dramatically changed with the pandemic, the band, and many airlines asking airbus and boeing to cancel or postpone their orders. remember last week, for exampl

lufthansa down and klm a bit of selling pressure on airlines space as iata has issued a forecast. a dier look at the worst year in the history of aviation. that's what they are talling 2020 in the aerospace, boeing delivered the lowest number of planes in may and logged 18 cancellations for the month. mostly for the 737 max and only recording nine orders. boeing was already under pressure needing to ground the 737 max after two fatal crashes. >> 2020 will go down as the worst year in the history of aviation that's the stark warning as it forecasted airlines would lose $84 billion this year. also warning of continued fragility when the red ink could surpass $100 billion airlines had to secure bail out what stuck out to me in recent weeks is how quickly people are eager to return to the airways ryanair saying bookings has already surged is it fair to say air traffic and air travel has prove ton be more resilient than expected? the recovery was slow bookings were higher. there was a strong appetite again. that is good news for us >> we have talked about this many times the flag carri

loan guarantees are also extended to the likes of air france klm.cific has announced a $5 billion u.s. recapitalization plan, including a rights issue to battle the unprecedented difficulty brought on by the coronavirus. even before the pandemic, cathay pacific was under in norma's pressure -- under enormous pressure. his response is to criticism from all sides. francine: let's take a look at what you should be watching out for later today. in a few minutes from now we will get your area gdp. nato secretary-general again stoltenberg will deliver an address. to leave rates above zero and committed to reusing their full range of tools to support the u.s. economy. coming up, we speak to eric collins, founder of an ethnic fund to help ethnic minorities. that is coming up next, and this is bloomberg. ♪ francine: economics, finance, politics. this is "bloomberg surveillance." impact x is a venture capital fund which makes direct investments in startups by black and female leaders in europe. it aims to support business which would otherwise be disproportio

easy jet and klm in europe, and asia's virgin australia. it is a way to ensure people keep their masks on and not linger over their refreshments. nflt new developments at the livermore's farmer's mark. aelling olded for hdsut cookies. the city announced this morning that the california farmer's market association resigned as manager of that farmer's market. >>> san francisco has filed a lawsuit against the food delivery service door dash claiming the company is depriving workers of labor law safeguards. >> our office focuses on public safety. when billion-dollar corporations are able to skirt labor law, able to avoid paying their fair share in unemployment insurance funds, all of us suffer. >> the district attorney said san francisco-based door dash is misclassifying its delivery workers as independent contractors. not employees. the lawsuit seeks restitution for workers, civil penalties and an injunction requiring door dash to properly classify workers. >>> time for consumer news. michael finney joins with us a look at today's headlines. >

the dutch finance ministry will announce details later of a bailout package for air—france klm, thoughtom a merger between their two national carriers in 2004. the bailout has been complicated by long—standing tensions between the two sides. shareholders of german rival lufthansa have overwhelmingly backed a 9 billion euro bailout of the airline that will see the german government take a 20% stake and two seats on the board. germany's finance minister says the state's involvement is only fora limited time, and it would sell its stake once the airline has recovered. let's stay with the struggles of the aviation business, because the boss of delta air lines has told the bbc that the carrier will continue to limit the number of people on its planes beyond september. so far, the world's second biggest airline has been operating flights atjust 60% of capacity as it tries to limit the spread of coronavirus. ed bastian told my colleague aaron heslehurst this he was concerned about a second wave of the pandemic in the us — a country which account for 70% of the company's ticket sales. i have sa