we have iag, a big airline group and we have the lufthansa group and we have the lufthansa group andthe klm and air france group. we have about 200 airlines in europe and we do not need 200 airlines. we have a number of countries who have their own independent carriers who, in some cases, our state owned and really should not be in the marketplace. when they fall away, and we have seen when they fall away, and we have seen that happen such as the belgian airline and abilene has collapsed. you would think the capacity would come out of the market but it does not. airlines put more capacity back into they take those aircraft in flight into they take those aircraft in flight under a different name. until we have more sense in the market we will always be in this position. thank you very much for that. that's brief you want some other business news. the government is planning to create up to ten free ports across the country after brexit. seaports and airports will be allowed to apply for the status that allows firms to import goods and then re—export them outside the normal tax and custo

flights and whether they will be reinstated to this is luftha nsa, they will be reinstated to this is lufthansaugal and a few others. the advice is to check before you travel because you just don't know what the situation is. hearing from some passengers leave yesterday they were getting very little at information from airlines about whether they would be going on monday or not there was confusion. what rights do passengers have in this situation? contact your airline to see if you can get compensation for disruption. but what the civil aviation authority say is what they would call an extraordinary circumstances because it is the airport cancelling flights, not the airlines. under those circumstances you are not actually going to get compensation but that does depend on the commercial agreements tween airlines and the airport. they may get compensation that they can pass on. but this comes at the worst possible time, right in the height of summer holidays and even more bad news, there is a separate strike that could take place for british airways pilots, and that is due on august 23 and 24. gr

said theye, lufthansa have a carbon offset button on their booking and next to nobody uses it, he said he blamed himself for it, saying it's not very visible. but his point is, it's all there, we just need to be smarter. matt: i think the airline is really responsible for that. i would be willing to pay to offset my carbon footprint, i did not even know they have that option. it's very difficult to find, at least on my app. what about the infrastructure question? i thought it was interesting when he told me he would like the deutsche bond to work better. he would like the autobahn work better -- to work better. he says silly people are pushed for airline travel because there are are -- he says so many people are pushed to airline travel because there are no other options. -- the services to be more integrated. in frankfurt, the infrastructure is good. but in munich, getting out there is very difficult. you have a very slow train that gets you out there. you want something high-speed that the next the train and the plane -- that connects the plane and the train. he says we have had grow

when lufthansa were struggling and when iag say that they are having a slowdown in demand, ryanair relativeg really well and will continue to, because they are obsessed with costs. john grant, thank you very much indeed. a shortage of pilots globally. this could be our new location. would you fly ina could be our new location. would you fly in a plane with us at the helm? the way things are going today,...! yet in touch with us at #bbcbizlive. let's take a look at some of the other stories making the news. royal dutch shell has made its first foray into australia's highly competitive power sector with a a$419 million takeover offer for erm power. the deal would give shell a power supplier with almost a quarter share of the commercial and industrial retail market. erm is the second—largest energy retailer by load in australia. argentina's new treasury minister, hernan lacunza, has pledged to use the country's dollar reserves to shore up the peso — as fear of a default grows. argentina's central bank has spent over $700 million trying to stem a collapse in the currency since the 11th august p

around the concentration of the major airlines, luftha nsa concentration of the major airlines, lufthansairways aig, concentrating the business in europe. they have their own models of lower cost, short—haul, long haul, with british airways and aig. that's one issue. the other issue is certainly the pilot shortage, which hits everywhere in europe, and a little bit now the effects of the boeing 737 max which has more than 1000 aircraft now grounded, which continue to be produced by boeing. that is hitting a lot of companies, especially here in norway, like norwegian and a couple of others, with a large number of aircraft ordered. altogether we also have a little bit of an effect, air travel, with this greater issue that's coming under discussion. people may turn away from short holiday trips and may be that is even a welcome situation for airlines because they can cut some of those very costly routes that don't make much money. captain tillman, thank you. let's look at how the markets are doing. no surprising, red across the board with asian shares falling sharply as president trump's deci

that is according to live funds chief lufthansa's executive. >> we need to reduce our impact on the environmentnothis point, this tax is serving this purpose. that is what we discussed here today. annabelle: qantas is feeling the drag of weak demand and higher fuel costs. a 17% plunge in profit. a droplso preparing for in passenger numbers flying to hong kong. the ongoing unrest there continues to affect demand. >> we have this flexibility of moving to slightly smaller aircraft. essentially the same product but with less seats. we will do that over the next two months to take 7% of capacity out and the anticipation that this will continue for a few months. annabelle: that is your bloomberg business flash. nejra: donald trump is talking tough on trade once again after recent signs of progress with china. he told reporters the u.s. is winning the dispute. >> i am the chosen one. somebody had to do it. i am taking on china on trade. and we are winning. nejra: the fed minutes cited uncertainty over tariffs is one of the main reasons for the july rate cut. the onshore yuan weakening for a six-day. d

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customers -- companies that beat estimates were barely above 40%, and the likes of daimler, bsf, and lufthansahe ranks of profit warnings. is the worst yet to come? joining us is our government reporter and bloomberg's global business senior editor. you put out a story at the beginning of the week saying maybe there are cracks showing in this fiscal austerity front put up by the finance minister and the chancellor. what is the likelihood that we could see more talk of spending? guest: i think the pressure is mounting. even the german industry lobbying group has called for a turnaround in the fiscal policy the balance is not as important as the constitutional rules. callingbig business is for it, economists are calling for more spending in infrastructure and also the social democrats were never so committed to the balanced-budget. they say the time is over to hold the hats. to be clear, it is not that germans do not like spending money, although germans do not like spending money. there is actually a law they cannot borrow because of the debt rig. explain that, and is it possible to take it out

deutsche lufthansa surrounding what management they are targeting, catching attention. let's move to the downside and have a look at what's moving there. rockwall is one of the stocks on the slide, down more than 4%. they are rethinking targets. than sensitive down more -- really, it's a big picture story that matters. equity markets following the u.s. lower friday. keep an eye on u.s. features. perhaps that dictates where we go. let's get a bloomberg first word news update with annabelle droulers in hong kong. anna.lle: thanks, well, a trade deal with u.s. and japan in principle. president trump announced it would slice tokyo's tariffs on american beef, pork, and other farm products, and delay levies on auto exports to the u.s. tensions flared in hong kong again this weekend. the decision to fire his gun was the best option. they say the officer firing a warning shot in the sky was necessary as protesters were charging them. 65 people were arrested over the weekend. there could be a solution in sight to italy's political crisis. local media reports the democratic party

wide, according to lufthansa's ceo.es would be hard-pressed to shoulder more environmental levies unless the nation's partners follow suit. >> there is no room for toreases, but rather room see how money flows back into the industry to really reduce our impact on the environment. that's what we need, not more taxes. we need less impact on the environment. at this point, this tax is not serving that purpose. that's what we discussed today. >> staying with airlines, qantas is feeling the drag of weak demand and higher fuel c osts. they are reporting a pungent pretax profit and preparing for a drop in passenger numbers flying to hong kong. we have the flexibility of moving to slightly smaller aircraft. aircraft,y, the same same product but with less seats. we will do that over the next of months to take 7% capacity out in anticipation this will continue for a few months. -- from a strike today by pilots from ryanair. flights taking off largely as scheduled. walkout began right before the country's biggest travel weekend of

we saw lufthansa reporting a 20% drop in profits. so by contrast, iig doing well.ituation and it is as a result of largely the ab and amro deal that caused the fall of rbs. the bank is making progress. again if you look at the other bank results that we saw this week, ba rclays for example, they're results that we saw this week, barclays for example, they're citing similar things, there is barclays for example, they're citing similarthings, there is a barclays for example, they're citing similar things, there is a general economic malaise, specifically with the housing market and mortgages are just not as profitable as they were. interest rates have been low for a long time, but the difference now is that there is not much transaction volume to buffer up the low interest rates. thank you. do you want to have a look at the markets now? i do. you want to see where it go. u nless do. you want to see where it go. unless you invested in international airlines. that is ba and aer lingus. each time i look at it the share has gone up. the pound stuck near the bottom where