flybe's shareholders, which include virgin atlantic, have agreed to put in extra money in return forng that things like air passenger duty will be reviewed was very interesting for them. of course it will be reviewed for everyone. and ensuring that the way our regional connectivity works, that we can level up communities, make sure our union is strengthened, those individual, regional airports are easy to get to and properly connected, those were the sorts of things which were concerning flybe. so, what happened to flybe? it has been struggling for years. it over—ordered planes, had it failures, and, most damaging of all, saw fuel costs rise in dollar terms while sterling fell amid brexit uncertainty. but what pressure will the government face given its environmental targets? flying may be faster than road or rail but it emits a lot more carbon so news the government is considering cutting taxes on domestic airlines has angered climate activists. aviation is the highest carbon form of transport and we know that we need to be cutting this because we are living in a climate emergency.

flybe‘s shareholders, which include virgin atlantic, have agreed to put in extra money in return fort reviewing — in other words cutting — taxes on domestic airlines. hearing that things like air passenger duty will be reviewed was very interesting for them. of course it will be reviewed for everyone. and ensuring that the way our regional connectivity works, that we can level up communities, make sure our union is strengthened, those individual, regional airports are easy to get to and properly connected, those were the sorts of things which were concerning flybe. so, what happened to flybe? it has been struggling for years. it over—ordered planes, had it failures, and, most damaging of all, saw fuel costs rise in dollar terms while sterling fell amid brexit uncertainty. but what pressure will the government face given its environmental targets? flying may be faster than road or rail but it emits a lot more carbon so news the government is considering cutting taxes on domestic airlines has angered climate activists. aviation is the highest carbon form of transport and we know that w

shareholders, including virgin atlantic, have agreed to put more money into the loss—making airline,inisters have said they'll review air passenger duty, which had added to the firm's losses. but the prospect of cutting taxes on flying has angered climate campiagners. let's join our business editor simon jack who's at flybe‘s base at exeter airport. thank you, yes, there was relief but also controversy and notjust because of the government is proposing to have a look at reviewing the tax that people pay on air travel within the uk, they have also allowed flybe some time to work—out with the taxman how to clear very big arrears in those taxes and that has caused a lot of controversy pronto in the end, it was the manifesto pledge to improve transport connection to the regions that seems to have won the day and it went down very well here tonight. flybe lives to fly another day. news that the airline will continue operating was greeted with great relief by workers and travellers this evening in exeter. absolutely ecstatic, yeah. i'm really happy, for myself and my partner works for flyb

one of those is virgin atlantic and one of virgin atlantic's main shareholders is delta, one of the mostout why such deep pocketed investors need the government to step in and help them keep this airline going. in a complaint to the european commission, we have had willie walsh, the outgoing head of iag, the company that owns british airways and iberia, he said virgin delta now just want to use airways and iberia, he said virgin delta nowjust want to use the taxpayer to pick up the tab for their mismanagement of the airline. this is a blatant misuse of public funds. he has complained to the european commission that this is in breach of european state aid rules which are meant to protect the competitive environment for airlines. the chief executive of easyj et has airlines. the chief executive of easyjet has also come out against this, saying taxpayers should not be used to bail out individual companies, especially when they are backed by well funded businesses. this is all about plans to defer payment of air passenger duty, which is collected by the airlines on behalf of the government a

what is happening is the shareholders of flybe, including virgin atlantic, have agreed to put in more keep the airline flying. that is in return for a pledge by the government to review flying taxes, air passenger duty, £13 on any flight you take. the i got a look at it again, it has been a bugbearfor the got a look at it again, it has been a bugbear for the industry. got a look at it again, it has been a bugbearfor the industry. if it is a bugbearfor the industry. if it is a review of a good bit money on, they are going to lower air passenger duty, and some of that is anger climate activists, who say that cutting taxes on flying is not consistent with trying to cut emissions. the government save you going to do this to be consistent with those ambitions. it means that if someone is paying less, others are going to pay more, so it will be interesting to see what will get without review on the run up to the budget. flybe also has tens of billions of pounds in arrears that the old to the government and i am told that hmrc and flybe what worked out a schedule to pay that back over the ne

the exeter—based airline survives because its shareholders, which include virgin atlantic, have agreedin extra money, but only in return for the government agreeing to consider cutting taxes on domestic airlines. hearing that things like air passenger duty will be reviewed was very interesting for them, of course it will be reviewed for everyone, and ensuring the way that our regional connectivity works, that we can level up communities, make sure our union is strengthened. cutting air passenger duty, which adds about £13 to the price of every domestic flight, would make it cheaper for people to fly. the air industry says such a move would provide a boost — but environmentalists are not happy. aviation is the highest carbon form of transport, and cutting air passenger duty is just going to make aviation relatively cheaper compared to other forms of transport. it's absolutely the opposite of what we need to be doing. so flybe survives for now, but only with a helping hand from the government and more questions about whether we should be flying cheap or flying less. jon donnison, bbc new

consortium involving the logistics group stobart, virgin atla ntic the logistics group stobart, virgin atlanticlion to support the business, £20 billion to get it out of trouble and another £80 million worth of investment. it was going to be rebranded as virgin connect, and we don't know what has apparently gone wrong. it may be that some of those investors haven't been able to raise the money as easily as they'd hoped. -- 20 the money as easily as they'd hoped. —— 20 million. or it may be that the business simply isn't doing well enough because this is a difficult business to operate in, particularly on domestic flights, flybe is competing with trains, road travel and ina competing with trains, road travel and in a market where fuel prices can go up—and—down and its margins are very tight. so it is clearly finding life very difficult indeed. 0k, finding life very difficult indeed. ok, theo, many thanks. candidates wanting to replace jeremy corbyn as labour leader have hello and welcome — it's awards season, and in the next few minutes we'll find out which actors and film—makers are nominated f

it put itself up for sale and was bought by virgin atlantic, cyrus capital and and stobart.n problem is if flybe needs more money, where will it come from? with investors having funded the rescue, do they want to put more money in and on what terms? it is hard to see how the government could help. there is a limited range of options and not much history of airlines being bailed out in the uk. as has happened elsewhere in europe. 2,000 employees at flybe. add a question for passengers, we are familiar with what happens with thomas cook, the government and atol protection scheme helped passengers get repatriated or refunded when tickets were already booked. at flybe, almost all passengers will not be covered by atol because it is seat early bookings are not part of a package holiday. an uncertain time for staff and customers, and regional connectivity across the uk because it is the biggest regional airline. why is it in difficulty? it is a two speed game for airlines, the big players are doing quite well, british airways, international travel is holding up quite well. regiona

virgin atlantic is not cancelling its flights but it's offering full refunds for passengers who do not want to fly at this time. united airlines is suspending flights from sfo to shanghai and hong kong beginning this sunday. many travelers have already cancelled their tickets. many american manufacturing companies that had their suppliers in china had to shut down their operations. and the oakland chamber of commerce cancelled their business got stuck in china in one of those cities we may not be able to get back at all. so that is the concern that we have and we have decided we better stay put. >> now cnn reports apple has closed a store in china and tim cook says many of its retailed partners have temporarily ceased their operations. >> there are no confirmed cases of the corona virus here in the bay area. they are investigating every potential case but the cdc is the only u.s. facility that can test for the virus. they are also doing everything they can to stop misinformation about scaring the public. >> what we're trying to do here in the public health department is to get up to da

it put itself up for sale and was bought by virgin atlantic, cyrus capital and start —— and stobart groupome from? with investors having funded the rescue, do they want to put more money in and on what terms? it is hard to see how the government could help. there isa how the government could help. there is a limited range of options and not much history of airlines being bailed out in the uk. 2,000 employees at flybe. add a question for passengers, we are familiar with what happens with thomas cook, the government and protection scheme helped passengers get repatriated or refunded with tickets already booked. at flybe, almost all passengers will not be covered because it is seat early bookings are not part of a package holiday. an uncertain time for staff and customers, and regional connectivity across the uk because it is the biggest regional airline. why is it in difficulty? it is a two speed game for airlines, the big players are doing quite well, international travel is holding up quite well. regional allies have been struggling as has flybe in particular, it has a legacy of debt, str

virgin atlantic and since then, the consortium has invested tens of millions of pounds in the airlinehere he was paying respects to victims of the crash, some of whom were british. mr macaire said he left the vigil when some people started chanting and had played no part in the demonstration. britain has condemned the arrest of the uk ambassador to iran in tehran as a "flagrant violation of international law". the economy shrank by 0.3 percent in november, according to monthly estimates by the office for national statistics. that‘s worse than expected. the picture was slightly better for the three month period from september to november last year which saw growth of 0.1% — economists had predicted a slight fall in the same period. a british backpacker has died after falling from a cliff in australia. madalyn davis from lincoln is understood to have died near sydney yesterday morning. the makeup artist and model had been travelling in australia. friends paid tribute to the 21—year—old as ‘talented‘ and ‘incredibly beautiful‘. a volcano in the philippines, which has been spewing lava an

it's part owned by virgin atlantic, which itself is part owned by one of the biggest carriers of all,gone on the attack. willie walsh, the ultimate boss of ba, argues that virgin and delta have the resources to rescue flybe themselves, and the taxpayer was picking up the tab for their mismanagement of the airline. he added, "this is a blatant misuse of public funds." flybe is the latest in a succession of troubled uk travel companies. last year, it was thomas cook, with 9,000 jobs, which the government decided not to save. ministers have moved quickly to defend their approach this time. the government isn't in the market to bail out private companies. what we do, on a case by case basis, is look to see whether a business is viable. the difference, for example, between flybe and thomas cook was that in the case of thomas cook it had huge amounts of debt, and any taxpayers' money would have simply been throwing good money after bad. it was not a viable company. it is understood that the flybe rescue package involves the government allowing it to defer £100 million of tax, the air passen

fly.be has been having trouble for quite a while and they were bought by virgin atlantic a year ago.ularly hit by the falling value of the pound because a lot of their values we re pound because a lot of their values were in dollars and they have a lot of debt along with many other companies, having insolvency problems. many have taken out a lot of debt at low interest rates and that seems to have been a problem for fly. be as well. that seems to have been a problem for fly.be as well. it now looks like, unusually, especially fora conservative government, that a deal has been struck where the government will allow them to defer payment of passenger duty, a tax levied on flights, on passenger flights passenger duty, a tax levied on flights, on passengerflights for short and long haulflights. and also a loan. and the competitors are saying that if they do not have to pay that tax, where do we have to pay that tax, where do we have to pay it? that is fair enough, isn't it? kind of is. this is a very bizarre decision, i think. it has clear political implications. the desire is to say tha

come up with some sort of three-pronged approach to rescue the company, which is now owned by virgin atlantiche government is likely to defermentsme sort of -- when you fly out of an airport to another airport, it will provide a loan. this is by no means done. possiblyiscovered was the way the government will diffuse this is by tackling it by going after the roots, rather than the airline. they have public service obligations in europe. basically the government subsidizes it. hashe moment, flybe only one of those. it is in the corner of england. maybe what the government will do is subsidize other routes, not the airline. issue fromget around complaints from people like michael o'leary. they are up in arms what is happening with flybe. vonnie: there is something like 180 of them around europe. they cater to economically challenged parts of europe. there is a bloomberg opinion piece out on how the airline toustry come -- contributed inequality because these economically challenged areas are not serviced. guy: exactly. you will hear more about this in the u.k.. the government's under boris john

it comes less than a year after a group fronted by virgin atlantic stepped into rescue the carrier. head of a possible liquidation. sky says over 2000 jobs are at risk. flybe says it remains in business. a last-ditch effort to bring in fresh funding, lori strohl is close to committing a stake in the luxury carmaker. also in talks for a state. it controls volvo cars and daimler. astrazeneca says it will stop testing at the most advanced and expensive stage of one of its clinical trials. the pharmaceutical company is abandoning a fish oil pill for bad cholesterol. the medicine did not stand a high chance of showing a benefit when combined. the company says it is disappointed by the results. analysts expect the medicine could generate a peak revenue of $145 million. that is your bloomberg business flash. anna: thank you. next, the stocks on the move this morning. the stock had a very volatile session on friday. feds this morning after the is holding funding talks. we will get an update shortly. this is bloomberg. ♪ ♪ matt: welcome back to bloomberg markets. this is the european open. n

air france and klm have suspended flights to china the airline joins the like of lufthansa, virgin atlantic british airways halting flights to the country amid concerns of employees being exposed to the virus. >> italy has halted all air traffic with china after rome confirmed two cases becoming the fourth european country to do so following germany, france and finland and the uk with the first two cases in england as well italian prime minister announced two chinese tourists have tested positive for the disease 6,000 tourists were held on acrua cruise ship off the coast of italy. the ship's operator has revealed that the 54-year-old chinese woman was diagnosed with the common flu a lot of concern going around and spreading to europe. >> let's chat with jim o'neill over the phone i want to start out by asking you about coronavirus. i know in one of your previous jobs, you worked as an advisor to david cameron and you did a lot of work on infectious diseases in your view, will this be enough to contain the spread of this virus >> my honest answer, i've got no idea i'm sure nobody else does.

rescue of the regional carrier taken on flights with its rival virgin atlantic. saying the u.k.'tax plan for the airline is unfair. government denying that saying the passenger duties will apply to all airlines. you're going to see a full-scale banking crisis in hong kong because you've got such a tightly wound economy in a stage of freefall from an economic perspective. the warning doesn't seem to be convincing markets. shown nos markets have sign of an impending banking collapse who would bloomberg business flash. manus: thank you very much. let's look at the vincent will be dominating the day's agenda. huge interest rates cuts over , andast four quarters continuing the u.s. bank earnings season, morgan stanley, stand up and be counted at noon. nejra: and the south africa reserve bank is expected to hold interest rates despite the struggling economy and oil uncertainty. follow half an hour later by u.s. retail figures from the holiday season. ,n goldman's biggest quarter but profits fell short of analysts estimates. will bring you the latest, next. this is bloomberg. ♪ you're g

they were bored by a consortium which included virgin atlantic, the big operator and virgin was tryingnd come up with some money because, in many of these epos, they are the biggest operator and without those services, it really affect not only the cities they fly to buy the airports themselves. about 2000 staff involved in so they will be keeping a close eye on any announcement. and they fly to apples other people don't. but that's not all you're talking about this morning, you've also been finding out how many new businesses got started last year? become your own boss and now is the time to do it. these are stats out this morning from the centre for entrepreneurs. they've looked at companies house data where all new businesses have to be registered no matter how small and they found that over 681,000 businesses were started in 2019. it sounds like a lot but this is in absolutely everything. it does. that's a record number and an increase of 2.8%. if you're looking at broad groupings, wholesale and retail were the most popular type of business to start — that's everything from deliver

the exeter based airline survives coz its shareholders, which include virgin atlantic, have agreed totra muggy, but only in return for the government agreeing to consider cutting taxes on domestic airlines. hearing that things like air passenger duty will be reviewed was very interesting for them, of course it will be reviewed for everyone, and ensuring the way that oui’ everyone, and ensuring the way that our regional connectivity works, that we can level up communities, make sure our union is strengthened. cutting air passenger duty, which adds about £13 to the price of every domestic flight, would make it cheaper for people to fly. the air industry says such a move would provide a boost but environmentalists are not happy. aviation is the highest carbon form of transport, and cutting air passenger duty is just going to make aviation relatively cheaper compared to other forms of transport. it's absolutely the opposite of what we need to be doing. so flybe survives for now but only with a helping hand from the garvey and more questions about whether we should be flying cheap or flyin

it's part owned by virgin atlantic, which itself is part owned by one of the biggest carriers of all,h airways has gone on the attack. willie walsh, the ultimate boss of ba, argues that virgin and delta have the resources to rescue flybe themselves, and the taxpayer was picking up the tab for their mismanagement of the airline. he added, "this is a blatant misuse of public funds." flybe is the latest in a succession of troubled uk travel companies. last year, it was thomas cook, with 9,000 jobs, which the government decided not to save. ministers have moved quickly to defend their approach this time. the government isn't in the market to bail out private companies. what we do, on a case by case basis, is look to see whether a business is viable. the difference, for example, between flybe and thomas cook was that in the case of thomas cook it had huge amounts of debt, and any taxpayers‘ money would have simply been throwing good money after bad. it was not a viable company. it is understood that the flybe rescue package involves the government allowing it to defer £100 million of tax,

the exeter—based airline survives because its shareholders, which include virgin atlantic, have agreed extra money, but only in return for the government agreeing to consider cutting taxes on domestic airlines. hearing that things like air passenger duty will be reviewed was very interesting for them, of course it will be reviewed for everyone, and ensuring the way that our regional connectivity works, that we can level up communities, make sure our union is strengthened. cutting air passenger duty, which adds about £13 to the price of every domestic flight, would make it cheaper for people to fly. the air industry says such a move would provide a boost — but environmentalists are not happy. aviation is the highest carbon form of transport, and cutting air passenger duty is just going to make aviation relatively cheaper, compared to other forms of transport. it's absolutely the opposite of what we need to be doing. so flybe survives for now, but only with a helping hand from the government and more questions about whether we should be flying cheap or flying less. jon donnison, bbc news

it's part owned by virgin atlantic, which itself is part owned by one of the biggest carriers of all,e boss of ba, argues that virgin and delta have the resources to rescue flybe themselves, and the taxpayer was picking up the tab for their mismanagement of the airline. he added, "this is a blatant misuse of public funds." flybe is the latest in a succession of troubled uk travel companies. last year, it was thomas cook, with 9,000 jobs, which the government decided not to save. ministers have moved quickly to defend their approach this time. the government isn't in the market to bail out private companies. what we do, on a case by case basis, is look to see whether a business is viable. the difference, for example, between flybe and thomas cook was that in the case of thomas cook it had huge amounts of debt, and any taxpayers' money would have simply been throwing good money after bad. it was not a viable company. it is understood that the flybe rescue package involves the government allowing it to defer £100 million of tax, the air passenger duty, which it collects from travellers a

what is happening is that shareholder of flybe which include virgin atlantic have to put in more moneyr flying. that is in return for a pledge by the government to review flying the taxes, something called air passenger duty. £13 on every flight you take on domestic flights. they say they are going to look at that again, there has been a bugbear in the industry. that review they will put more money, that can only mean one thing. they will lower air passenger duty and some of that with anger climate activists who say that cutting taxes on flying is not consistent with a target of net zero carbon emissions. the government for their parts say we are going to do this consistent with those ambitions. that means if someone is paying less, one has to assume that others are going to pay more. it will be interesting to see what reaction get during that review which will be done in the run—up to the budget. flybe also has tens of millions of pounds in areas of air passenger duty that they elected to government and i'm told the hmrc and the company will work out a schedule to pay that money back

the reports come a year after flybe was bought for £2.2 million by a consortium including virgin atlanticthe stobart group. since then, the consortium has invested tens of millions of pounds in the airline but losses have continued. the economy shrank by 0.3% in the month of november, according to the monthly estimate by the office for national statistics. that's worse than most economists expected. however, the last quarterly figures showed the economy grew by 0.1% between the start of september and the end of november — better than expected. labour's leadership contenders have until this afternoon to secure enough nominations to get on the ballot paper. sir keir starmer, rebecca long bailey, jess phillips and lisa nandy have secured the backing of 22 mps and meps leaving emily thornberry and clive lewis lobbying to get the support they require. officials in the philippines have warned a volcano that's been spewing lava could erupt within hours. schools in manila have been closed, flights have been grounded and thousands of homes have been evacuated. this year's oscar nominations will be

the reports come a year after flybe was bought for 2.2 million pounds by a consortium including virgin atlantic have continued. our business editor simonjack has been at exeter airport and he sent this update. we've seen people checking in for flights to newcastle and manchester here tonight, but you don't start having talks to the government about help with your tax bill if you are not straight right up against it and this is very substantial and important business. it operates 139 routes across eight countries, it carried over eight and a half million passengers last year, and it directly employs 2,300 people. now you'll remember that the government refused to request from thomas cook for a £150 million lifeline seeing it would create a moral hazard. companies could think they could come for the government every time they got in trouble, but remember, this is a government that put regional connectivity right at the top of its political agenda and these links between aberdeen, newquay, belfast, southampton, manchester and others, are absolutely key to some of these local economies, so there is

. >> and unep xt, virgin atlantic soaring. we'll tell you why there could be much more upside ahead. at fidelity, online u.s. stocks and etfs are commission-free. and when you open a new brokerage account, your cash is automatically invested at a great rate. that's why fidelity leads the industry in value while our competition continues to talk. ♪ talk, talk while our competition continues to talk. or here on a wifi hotspot. lte xfinity mobile has more coverage to keep you connected to what matters most. that's because it's the only wireless network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. save up to $400 a year when you switch. plus, save even more with $100 off galaxy a50. click, call or visit a store today. >>> we've got less than 45 minutes to go here shares of ibm moving higher after posting results yesterday. revenue broke five quarters of declines it also gave strong guidance the stock is up about 3% right now. >>> time to get word on the street bank of americ

it comes less than a year after a group fronted by virgin atlantic stepped in to rescue the carrier.standby to handle a possible liquidation. more than 2000 jobs are at risk. aston martin making a last-ditch effort. the canadian billionaire is close to committing to a 200,000,000,000 pound fix. controls half -- is inventing a fish oil pill for bad cholesterol and will start testing and expensive phase of clinical trials. this 1 -- the company says it's disappointed by the results. analysts say could generate a peak revenue $145 million. the german company is defined protest to abandon the deal. it says it has to balance the interests of all its different stakeholders. that's your bloomberg business flash. afterne: oil is steady losing -- losing most of its gains last week. the iea executive director also expected an abundance of oil this year. there will be a surplus of more than one million barrels per day looking for buyers because production is norway,rom brazil, canada, lots of oil in the market. we were talking about some of the currencies linked to oil, does it move on geopolit