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(Bloomberg) -- Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Apple Podcast, Spotify or Pocket Cast.Emmanuel Macron’s push to transform France’s sclerotic economy is facing the ultimate test of presidents past: “la greve.”In what has been the undoing of previous French governments, unions representing everyone from transport workers to lawyers, doctors, teachers and students are going on an indefinite “greve,” or strike, starting Thursday to oppose Macron’s plan to reform the country’s pension system.Thousands are marching in cities from Lyon to Nantes and Marseille as metros and trains services were largely halted, hospitals and schools struggled to remain open and air traffic was disrupted. Unions opposing Macron’s plan for a top-to-bottom rebuilding of the pension system have threatened to bring France to a standstill until the government backs down.While Macron has already barreled through reforms of tax and labor laws, history shows pensions won’t be nearly as easy. In 1995, Prime Minister Alain Juppe abandoned his pension-reform plan after strikes paralyzed the country for about a month. Faced with the labor unrest, Macron is “calm and determined,” and will stick to his plan to “reform and modernize” France, his office said in an emailed statement. Unions are also digging in.“We have one of the best pension systems in the world, if not the best,” the far-left CGT union said on its newsletter site. “Yet the president has decided, purely out of ideology, to wipe it out.”Coming just a year after the start of the Yellow Vest movement that drew violent protests over several Saturdays in Paris and other major French cities, the strike risks turning into one of the biggest challenges of Macron’s term. It’s also become a catch-all for the country’s discontent, with demands for everything from higher wages and lower gasoline prices to more environmentally friendly policies.Macron, who announced 17 billion euros ($18.9 billion) of tax breaks to appease the Yellow Vest protesters, faces municipal elections in the spring -- crucial to cementing his fledgling political party before the legislative and presidential votes in 2022.Universal SystemMacron’s plan is to abolish a pension system with 42 different benefit regimes for different classes of workers and replace it with a universal points-based system. In the 21st century, he argues, workers don’t have linear careers, as was assumed in 1945 when France’s pension system was conceived. The multitude of regimes has become “corporatist,” leading to injustice, complexity and failures, the government says.“We will not stall” the implementation of the pension reform, Gilles Le Gendre, the parliamentary head of Macron’s party, said today, noting that after two years of negotiations, “no union can seriously think” that the government “will give up.”Unions say Macron’s overhaul would shrink pensions, push back the retirement age and reduce solidarity between workers.What Bloomberg’s Economists Say...“(Macron’s) reforms aim to make the pension system financially sustainable. They would also mean gradually raising the retirement age, supporting GDP growth for decades to come. That’s a help, but our long-term projections show economic success depends more on working smarter than longer.”\--Maeva Cousin. Read the full INSIGHTThe government says it will be necessary for French people to work longer to stop the system racking up more deficits. But it says it won’t cut pensions or significantly increase contributions paid by workers.Macron’s government is still working on its final plan, and a bill may be presented to lawmakers as early as next week.While the impact on the economy of a one-day strike would be marginal, if it lasts, consumer spending -- the main driver of growth -- could be dented, according to Ostrum AM’s Chief Economist Philippe Waechter.An Elabe poll published Wednesday showed that 58% of the French support the strikes over pension reform. Another survey by the same pollster on Sunday showed that a majority of the French consider the current pension system financially unsustainable. It also showed that 64% of them are in favor of a universal points-based pension system.Strike a la FrancaiseOn Thursday, 11 of Paris’s 14 metro lines will be closed, according to its operator RATP. The suburban “RER” lines will be run on minimum service and only during rush hours, while tramway traffic will be patchy.Air France canceled 30% of its domestic flights and 15% of medium-haul flights, while EasyJet has canceled 233 flights, of which 70 are to and from the U.K. Air France has warned that traffic disruptions could last until Dec. 7.Only one out of 10 long-distance trains will run, state-owned railway company SNCF said. Rail and metro unions have called for the strike to continue until the government abandons its pension-reform plan.Hospitals, which have been demanding more funding since last spring, will be hit by the strikes, while 55% of school staff are expected to strike.The Eiffel Tower is closed.The protest in Paris will start at 2:00 p.m. from Gare du Nord station to Nation square, and is expected to draw a massive crowd.The far-right’s Marine Le Pen has asked her supporters to join the protests. Socialists and far-left supporters are taking part.The Paris demonstration could also draw hard-core Yellow Vest protesters and anarchist activists known as “BlackBlocs,” who’ve destroyed property and burned cars in the past. The police have asked shops and buildings on the protest route to close.(Updates with details of strike action in 3rd para, Macron comment in 4th)\--With assistance from Helene Fouquet.To contact the reporter on this story: William Horobin in Paris at email@example.comTo contact the editors responsible for this story: Geraldine Amiel at firstname.lastname@example.org, Vidya RootFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Air France-KLM said on Wednesday it had dropped plans to buy a stake in Virgin Atlantic as the two airline groups combine their transatlantic partnerships with Delta Air Lines into an expanded joint venture. Under the three-way deal struck in 2017 and approved by U.S. regulators last month, Virgin had agreed to sell a 31% holding to Air France-KLM for 220 million pounds ($282 million) - effectively ceding joint control to Delta, which already owns a 49% Virgin stake, and its Franco-Dutch partner.
Airline group Air France-KLM said on Wednesday it was not necessary to buy a stake in Virgin Atlantic to expand a transatlantic joint venture with Virgin Atlantic and Delta Air Lines. Air France-KLM also said in a statement it would continue final preparations towards the launch of the expanded joint venture in the coming weeks. "This partnership is key to strengthen the group’s leadership position between Europe and North America", Air France-KLM added.
(Bloomberg) -- The European Union is gearing up for the world’s most ambitious push against climate change with a radical overhaul of its economy.At a summit in Brussels next week, EU leaders will commit to cutting net greenhouse-gas emissions to zero by 2050, according to a draft of their joint statement for the Dec. 12-13 meeting. To meet this target, the EU will promise more green investment and adjust all of its policy making accordingly.“If our common goal is to be a climate-neutral continent in 2050, we have to act now,” Ursula von der Leyen, president of the European Commission, told a United Nations climate conference on Monday. “It’s a generational transition we have to go through.”The commission, the EU’s regulatory arm, will have the job of drafting the rules that would transform the European economy once national leaders have signed off on the climate goals for 2050. The wording of the first draft summit communique, which may still change, reflects an initial set of ideas to be floated by the commission on the eve of the leaders’ gathering.The EU plan, set to be approved as the high-profile United Nations summit in Madrid winds up, would put the bloc ahead of other major emitters. Countries including China, India and Japan have yet to translate voluntary pledges under the 2015 Paris climate accord into binding national measures. U.S. President Donald Trump has said he’ll pull the U.S. out of the Paris agreement.In a pitch of her Green Deal to member states and the European Parliament on Dec. 11, von der Leyen is set to promise a set of measures to reach the net-zero emissions target, affecting sectors from agriculture to energy production. It will include a thorough analysis on how to toughen the current 40% goal to reduce emissions by 2030 to 50% or even 55%, according to an EU document obtained by Bloomberg News.Make It IrreversibleIn the next step, the commission will propose an EU law in March that would “make the transition to climate neutrality irreversible,” von der Leyen told the UN meeting. She said the measure will include “a farm-to-fork strategy and a biodiversity strategy” and will extend the scope of emissions trading.The EU Emissions Trading System is the world’s largest cap-and-trade market for greenhouse gases. It imposes pollution caps on around 12,000 facilities in sectors from refining to cement production, including Royal Dutch Shell Plc and BASF SE. Von der Leyen eyes the inclusion of road transport into the market and cutting the number of free emission permits for airlines.Some of the transportation industry’s biggest polluters have already stepped up efforts to reduce their environmental impact. In June, France’s Airbus SE, its U.S. rival Boeing Co. and other aviation companies pledged to reduce net CO2 emissions by half in 2050 compared with 2005 levels. EasyJet Plc, the U.K.-based discount airline, has promised to offset all of its carbon emissions by planting trees and supporting solar-energy projects, while Air France will take similar steps on its domestic routes.Germany’s Volkswagen AG, the world’s largest automaker, aims to become CO2 neutral by 2050, while Daimler AG plans to reach that target for its Mercedes-Benz luxury car lineup by 2039.To ensure that coal-reliant Poland doesn’t veto the climate goals next week, EU leaders will pledge an “enabling framework” that will include financial support, according to the document, dated Dec. 2. The commission has estimated that additional investment on energy and infrastructure of as much as 290 billion euros a year may be required after 2030 to meet the targets.The EU leaders will also debate the bloc’s next long-term budget next week. The current proposal would commit at least $300 billion in public funds for climate initiatives, or at least a quarter of the bloc’s entire budget for the period between 2021 and 2027.(Updates with details on draft sumit communique from fourth paragraph.)\--With assistance from Ania Nussbaum, Siddharth Philip and Christoph Rauwald.To contact the reporters on this story: Ewa Krukowska in Brussels at email@example.com;Nikos Chrysoloras in Brussels at firstname.lastname@example.orgTo contact the editors responsible for this story: Chad Thomas at email@example.com, Chris ReiterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Airlines are confident of having sufficient supplies of biofuel-infused jet fuel to comply with a Norway requirement which takes effect next year, although they warn of additional costs. From January, jet fuel suppliers in Norway must blend 0.5% of biofuel in all their aviation fuel, a policy Oslo hopes will boost supply and demand and lead to lower CO2 emissions.
Airbus SE's Canadian-designed A220 narrowbody jet has the potential to be stretched to carry more passengers but the company has no current plans to do so, a top executive said on Tuesday. Air France KLM SA, which has a firm order for 60 A220 jets, has expressed interest in a larger variant of the plane. In a presentation to investors, Air France KLM last week posted a slide referring to a larger A220-500 plane.
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* European stocks end lower after positive open * Reported China doubts about trade deal offset Fed rate cut * Fiat climbs to 1-year high, Peugeot drops after announcing 50-50 merger * Eutelsat falls sharply after weak results * Wall Street falls despite strong Apple, Facebook results Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. Reach him on Messenger to share your thoughts on market moves: rm://firstname.lastname@example.org CLOSING SNAPSHOT: PROFIT TAKING, BUT OCTOBER WAS GOOD (1657 GMT) It was a day of profit taking across European stock markets as more brokers advised clients to take a break after the October rally that saw the STOXX 600 recover 6% from the month's lows as investors moved to priced in the good news on Brexit and trade.
* European stocks fall after positive open * Reported China doubts about trade deal offset Fed rate cut * Fiat jumps, Peugeot drops after they officially announce 50-50 merger * Eutelsat down 12% after weak results Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. Reach him on Messenger to share your thoughts on market moves: rm://email@example.com WILL FARAGE MOVE STERLING? There's speculation that Nigel Farage's party might decide to concentrate its efforts in only a handful of constituencies instead of running in all of the countries' 650.
* European stocks fall after positive open * Reported China doubts about trade deal offset Fed rate cut * Fiat jumps, Peugeot drops after they officially announce 50-50 merger * Eutelsat down 12% after weak results Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. The Fed feel-good vibes which were lifting markets since the cut was announced yesterday are gone, shot down by the news conveyed by this snap: European benchmarks and Wall Street futures fell abruptly as our main competitor reported that Chinese officials have their doubts about a comprehensive long-term trade deal with Trump. Asked to comment on the following drop on the STOXX, Stephane Barbier de la Serre at Makor said he wasn't surprise at all given the current high levels at which markets are trading.
European shares fell on Thursday, hurt by losses for miners and automakers as doubts grew over the prospect of a trade deal between the United States and China, with weak earnings from oil major Royal Dutch Shell adding to the gloom. A Bloomberg report said that China is doubtful of a long-term trade deal with U.S. President Donald Trump, raising fresh uncertainty about progress between the two countries after an interim trade deal was almost finalised. The pan-European STOXX 600 index ended 0.5% lower but logged its second straight monthly gain after an October packed with corporate earnings reports along with some Brexit and trade twists.
British Airways owner IAG said on Thursday it had taken a hit from industrial action from pilots at the airline, knocking profits in its third quarter and reiterating a lower outlook for the year. The group said that the action by pilots at BA, together with other disruption, resulted in a hit to operating profit of 155 million euros ($173.03 million) in the three months to September 30. British Airways pilots went on strike for 48 hours last month, grounding 1,700 flights in a dispute between pilot union BALPA and the airline over pay.
Low-cost airline easyJet has added baggage services to its flight-connections partnership with two budget long-haul carriers flying from Paris, in a move that challenges Air France on transatlantic and Caribbean leisure routes. Starting on Friday, easyJet said passengers arriving at Orly for connecting flights with La Compagnie or Corsair can re-check baggage at a desk near the carousel before being fast-tracked to their next boarding gate with easyJet's "self-connect" service. Traditional carriers such as Air France-KLM, whose regional networks have been eroded by low-cost rivals, now face stiffer long-haul competition as budget and point-to-point operators combine offerings to provide new connections and routes.
French airline Air France KLM said on Wednesday plans to enlarge its current joint-venture cooperation with China Eastern with the addition of Virgin Atlantic. The planned cooperation between the three airlines is due to enter into force in spring 2020, Air France KLM said in a statement. "The announcement reaffirms Air France KLM's commitment to the Chinese market, having already implemented an enlarged scope of cooperation with China Eastern in January this year", French airline said.
A protester lay on top of a plane while another forced a jet to turn around on the runway as climate change activists descended on London City Airport on Thursday, causing some flight disruption as the number of arrests this week topped 1,000. Protest organisers Extinction Rebellion had vowed to occupy the airport's terminal and shut down operations for three days as part of its action in the British capital. The airport said two flights were cancelled but it had run an almost complete schedule of flights.
London City Airport was braced for disruption on Thursday after climate-change protesters Extinction Rebellion vowed to occupy its terminal and shut down operations for three days as part of its action in the British capital. London City is the capital's fifth-biggest - and most central - airport, popular with business travellers, bankers and politicians for short-haul and regional routes. On Thursday, 18,000 passengers are due to arrive or depart from the airport, with 286 flights scheduled.
WASHINGTON/SAO PAULO, Oct 10 (Reuters) - Southwest Airlines Co and Brazil's Gol Linhas Aereas have grounded a total of 13 Boeing Co 737 NG airplanes, the companies said, after U.S. regulators ordered urgent inspections. Southwest said it had taken two planes out of service, while Gol had grounded 11. The U.S. Federal Aviation Administration last week told aircraft operators to inspect 165 older 737 NG planes for structural cracks within seven days, after cracking was found on a small number of planes.
FTSE down 0.8% * London midcaps hit lowest in more than 2 months as sterling falls * German industrial output rises unexpectedly in August * LSE drops after HKEX ditches takeover bid * Wall Street falls as mood sours ahead of China-U.S. trade talks Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Josephine Mason. Reach her on Messenger to share your thoughts on market moves: rm://firstname.lastname@example.org CLOSING SNAPSHOT: BREXIT, TRADE WAR, WHAT'S NOT TO LIKE? On the bright side, the rhetoric between the UK and the EU on a possible collapse in negotiations has somewhat helped the FTSE (-0.8) somewhat with a falling pound providing its usual hedge.
FTSE down 0.2% * London midcaps hit lowest in more than 2 months as sterling falls * German industrial output rises unexpectedly in August * LSE drops after HKEX ditches takeover bid * Wall Street falls as mood sours ahead of China-U.S. trade talks Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Josephine Mason. Dealers were almost unanimous in calling the budget carrier shares up before the opening bell after it forecast full-year profit would come in towards the top end of expectations, a rare piece of good news in the airline sector as it struggles with competition over fares and overcapacity in Europe.
FTSE down 0.2% * German industrial output rises unexpectedly in August * LSE drops after HKEX ditches takeover bid * Futures point to weaker Wall Street open Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Josephine Mason. Taking a look at this slide from the JP Morgan AM International Media Summit in London this afternoon, it's quite striking to see how few people in 2018 could imagine the Fed not tightening rates, let alone cut them! Here's the slide in question: (Julien Ponthus and Thyagaraju Adinarayan) ***** EUROPE HITS REVERSE: NO BREXIT OR TRADE BREAKTHROUGHS IN SIGHT (1139 GMT) The Brexit angst may be supporting the FTSE thanks to its depressing effect on the pound but the picture elsewhere in Europe isn't looking good and major indexes have now gone unequivocally into reverse to trade down sharply near session lows.
FTSE down 0.2% * German industrial output rises unexpectedly in August * LSE drops after HKEX ditches takeover bid * Futures point to weaker Wall Street open Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Josephine Mason. Reach her on Messenger to share your thoughts on market moves: rm://email@example.com EUROPE HITS REVERSE: NO BREXIT OR TRADE BREAKTHROUGHS IN SIGHT (1139 GMT) The Brexit angst may be supporting the FTSE thanks to its depressing effect on the pound but the picture elsewhere in Europe isn't looking good and major indexes have now gone unequivocally into reverse to trade down sharply near session lows. Downbeat noise from the Sino-U.S. trade talks is another dampener.