Ryan Revolt, Europe, Chris Jasper discussed on Bloomberg Daybreak: Europe
Denise Pellegrini, Bloomberg daybreak Europe. Now Toyota has Bucs President Trump's declaration that inputted cars that national security, the Japanese com. Ca says it sends the message that its investments on welcome and the contributions of its employees across America. Violate the company says it spent more than sixty billion dollars building operations in the country. This includes ten manufacturing plants, and in the UK Theresa May's holding more Brexit talks later to try and convince MP's tobacco withdrawal agreements, the PM says she's preparing to make a bold offering elastic tempt to get it through parliament. Jeremy Corbyn isn't planning to support and talks with the government of Brexit collapsed without a deal on Friday. And in endings news this morning. Vajna says that low fez that its new Austrian arm sent profits tumbling. It also full cost endings could further decline in the current twelve months joins a Kouris, if European carriers warning of tough months ahead, Yousef. Absolutely. I mean on that note, we're now joined by the Bloomberg European transportation editor Chris. Jasper Chris your initial read on these latest developments. Well, we certainly known that, that is being over capacity in the European market, and there's something of a fad. Well, going on Ryan ah usually size, just pretty well from that sort of thing that it's low cost basis to its advantage, but it's pretty grim this morning. The Shazad down seven percent, which is most in a little more than six months. And this is after all the other European carriers have reported and sort of told us that things about. So if Ryan is saying, then people are beginning to believe that we're headed for a really tough. Some are of the airlines, I've at least in terms of in terms of those falling phase and coinciding with tougher economic environment in your of course. I'm for Ryanair's rather, exposed to the UK, and we still have that lingering doubt of Brexit, sedately von puffing, something thirty nine percent in fact environment. So then they also saying that they don't have much V through into the rest of the year. That's, that's quite dramatic. The they've got a bit of an on fiscal year to be honest. They've just kicked off that period. They start with some season which is the high season which is why all airlines that prophet, and then the rest of the six months, the rest of the spent sort of diminishing that profit as Iraq up losses of the winter. So the two factors, head one is how much can they actually make in this family environment? And then how much are they gonna lose of the that second half made away? Does that leave them when compared to some of their peers it, you graphically and within the industry? Shad price. They're actually still out there. They turned negative for the today, but still outperforming most of their rivals EasyJet. Plus the network carriers. Why sorry whiz? However, are ahead of them based in eastern Europe have cost them. They claim to have a low cost base, it's really down to the cost base. If you believe that Ryan act can costlo, then you know, they should should come out of this having seen that profits diminished. Ultimately stronger, the problem for them as unionization, but she's beginning to eight into those margins. Yeah. I've city that was a big story. What about just lastly consolidation? In Europe is just gonna mean yet more pressure to, to cut the number of airlines have certainly we've already seen a winning winnowing out seventy eight has gone bust since last summer. Ryan revolt. We stood aloof from this, but they did join in a boat, louder in Australia, relatively recently, but they lost money there. So they say they're open to it. Whether they jumping again, we'll have to wait and say Chris has been great catching up. Thanks for stopping by to set Chris Jasper, he's Burke European transportation. At now, let's get the latest in global news has developed, Sandra Kilhof annual kicking off with the election supplies. Good morning. Good morning, Caroline. Yes ustralia as prime minister, pulling off the seemingly impossible, and winning reelection for his conservative coalition over the weekend. Bloomberg's Paul Allen has the latest from Sydney votes are still being counted. But Australian Prime minister Scott Morrison looks to secure a majority for his ruling coalition Marcin held this win. There's a miracle, and it's no exaggeration opinion polls, and even internal strategists said, consider this lost cause, but voters rejected the sweeping economic reforms promised by the labour opposition than Sydney poll, Ellen, Bloomberg daybreak Europe. Australia has called a snap election off the chances Sebastian coots dumped his populist coalition partner this as a leaked video showed the right, wing, vice chancellor offering government con. Contracts in exchange for campaign funds. But with campaigning already underway Heintz. Cushions has raised questions about the timing of the video shortly before you elections. President Donald Trump has wounded Ron not to threats in the US all face ruinous consequences. He spoke to folks news amid mounting tension tensions between Washington and Tehran, just don't want them.