watchingne, we are next as well. we expect it to open higher. >> yes, 45% higher on the open. sales for the fourth quarter rose three times ahead up where analysts had been expecting. they rose close to 12% across the board. -- they aremcnamee handing money back to the investor base. raising their full-year guidance as well. this is a strong story for next. really quite directly opposed to what we had from the likes of debenhams/ . >> mixed calls on the stock. bank of america seeing it falling but others saying it could rise. the chief executive just three months in the job and he is leaving. the stock is rising just a 10th

of a percent. under his tenure, he restore the stock. said, we are going to see substantial double-digit falls and profit. china is not spending as much on the likes of remi martin cognac. it is a blow to the company's chief executive. the chairman is taking the reins for the interim period. >> we will be keeping an eye on the winter storm that is currently heading the united states. if you are watching from there, you need to be aware of this or if you have travel plans in the region. we are expecting blizzard conditions from new york to maine. these are live pictures that you are looking at. the worst is expected to happen overnight. boston may get up to 14 inches of snow. some parts of massachusetts already reporting nearly 20 inches of snow. new york city may get up to nine inches of snow.

thousands of flights have already been canceled. temperatures expected to drop considerably during this storm. let's get a check on what is happening on the markets. have some fairly mixed calls ahead of today's trading day. futures had a mixed picture for us. the ftse was down, the cac was up, the next was down. the early moves do seem to be flat or higher on these markets. some of them taking a little time to open up this morning. we are in a new year mood here on european equity markets. perhaps things will kick back into gear more seriously on monday. let's move on to the commodity markets. heading for gold the biggest weekly increase since october in the future trading days we have had this week. consumption in asia is seen as a driving force according to analysts. this is a commodity that fell 28% in 2013. look out for the fed tabor and what that does to bond buying and what that might be for gold

prices. let's have a look at foreign exchange markets. we have the yen and the aussie dollar moving higher in this morning's trade. both of those were bad performers in the foreign exchange world in 2013. both of them picking up just a little bit in this morning's trade. thes have a look at some of news coming out this morning. we are getting jobless claims from spain. our first guest says that 2014 will be a dull and predictable year. for more on what we can expect bill blames joins us. you are never particular. -- predictable. why do you have this forecast? be athink 2014 is going to

difficult market for lazy portfolio managers. the reason i say that is because we have already seen an awful lot in the major market moving ventures occur. we have seen the start of the recovery, the one we predicted would happen. it is now in place. we have seen massive stock market gains. next year -- this year, i am getting confused. in 2014, we are going to see gains still occurring. they want the of the same magnitude. >> so we have to do more work, more analysis. >> and it is especially true in markets like bonds. you put money? you have so many choices. do you join this big flood of paper we are expecting from china and asia or do you sit back and look? i think this is the year people will step back and say, i am

going to be wise with my investments. i am going to investing countries i know are not bust. that is one of the reasons we are going to z countries like turkey back in the news. we're going to see people getting more and more concerned about europe, especially france, spain and italy. we are not going to see, i don't think, the same magnitude. that is why say it is going to be dull. >> do you think this is a year for them and countries? -- the mint countries? >> i think it is going to be a year for news out of them. i think we have already seen over the holiday season that turkey dominated much of the financial news simply because of the concerns what is going to happen. next year -- this year, i keep saying it. there are collections in a lot of these countries. that is going to be fascinating. >> in terms of equity trends, you said it is going to get more

complicated in the bond markets. should it go into equities? do you think the lazy investor as you put it will make money in equities generally? >> we are going to see continued global order -- global recovery. going tonuing story is be japan, china, the u.k., the u.s. and perhaps europe. all the central bank policy remaining easy and accommodated. recovery, which means you should be putting money into stocks especially if you're concerned about bonds. we have all heard the effects of rising bond yields putting a kind of cap on where you expect to get cash back from equities. at the same time, a lot of people are concerned and you just need to read the reports over christmas about another equity bubble. suspect there may be an element of that holding people

back. it can take an awful lot of time for stock market gains to turn into stock market bubbles. >> this time last year, you were saying that japan would be a big theme. >> we were right with that. >> well done. a japan is going to remain fascinating thing. it amazes me the number of analysts reports i read that say japan doesn't matter. i picked up a 185 page outlook for 2014 from one of the global investment banks and there were two paragraphs about japan. japan is one of the key global drivers. you have got to keep watching that to see how the nymex develops this year. b minus.ve abenomics a we will get more from you after a short break. bill blaine stays with us. we will continue our conversation with him. ise is a look at what else

coming up. 2013 was the best year for the u.k. property market since 2006. war on the latest reports. a big christmas gift for retailer next. we will dig into their holiday sales next on "on the move." ♪

on edwards in london. this is "on the move" on bloomberg television. the is a stock that is on

move. next, the u.k. retailer up by 7.4%. these retail stocks have come under pressure. it doesn't seem that next is subject to the same trends. beingre talking about significantly ahead of expectations. in particular talking about seasonal net worth doing pretty well. we will be back with bill for more after this. job figures from spain at the top of the hour. let ring in david tweed. give us the details on the jobs report. are looking at some pretty good news. what we are seeing in december is the biggest drop in jobless claims ever in december. fewer claiming

unemployment benefits in spain. these figures are unadjusted. we don't usually pay much attention to them. when you see such a big number like this one, it is time to sit up and pay attention. mean is that some big retailers in december but on more staff because of expectations that the spanish were going to start to spend again. we saw that in the third quarter gdp numbers when spain came out of two years of recession. it was driven by domestic consumer spending and we are seeing a continuation of that. something else i want to point out which is good news for the spanish economy, we just got the cdi numbers and. 0.3% increase year on year. that is the adjusted number. 0.9% we expected for the entire euro zone. that means the internal devaluation, the spanish

economic recovery story is still working. we are seeing unit prices declining. we are seeing producer prices declining. that is making spanish exports more competitive and it is very good for the spanish economy. one last thing, yesterday's output numbers showed a recovery in december, spanish manufacturing recovering again. good news for 2014. >> and these tentative signs of recovery, are they attracting investors right now? a story in theis financial times today about fcc. george soros has apparently taken 3.1% in fcc. fcc used to be one of spain's biggest building companies. it has been decimated by the construction collapse in spain but george soros's board of stake, we haven't confirmed that

yet but it is -- he is following up on bill gates who bought a stake in the same company in october. we have latin american billionaires moving in and buying some banks. we have a mexican food company wanting to buy a spanish sausage company. there is a lot going on, a lot of corporate activity. it looks like a lot of people want to find ways to leverage themselves into this very tentative spanish economic recovery. >> interesting. a good place to pick up with bill blain. let's talk about the european story. , some betterstory data coming out of spain. >> i think david's comment was tentative. that is the very best you can say about dennis recovery. what we are talking about is a tiny group factor -- growth factor. it is so small it could easily reverse very quickly. if it is the start of real

spanish recovery, you have got these investors now piling money construction firms in the expectation it is all going to happen again, i would suspect if there is a recovery, it will be very slow. >> it says that the reform programs we have seen enacted around the eurozone, the austerity measures, spain if we are seeing recovery and the spanish economy, that will mean more than the bare numbers themselves indicate. it will mean that these very tough times are perhaps them into a end. >> for spain, yes. spain has done a lot. spain has suffered. spain has tried hard. far more than some other european economies have. far more than italy has. italy has talked to us about it and done nothing whereas spain has converted itself into a situation where it has been able to competitively devalue within the euro. that is why it looks like a

better manufacturing economy. it is still doesn't control its own economy. it will still revert to the norm again. >> you were saying this time last year that you thought europe was headed for recovery. you sort of beat yourself up about that and so you didn't get it right. it is, isn't it? we have seen these tentative signs. remain beatingo myself up in europe. we did think maybe last year there was a chance we would see some sort of recovery but i think all we have seen is the bottom. i am not even sure it really is the bottom. while i am not so worried about spain, i am very concerned about political situations in italy. i am very concerned about what is going on in france. there just seems to be denial. >> the manufacturing pmi numbers we got showed france have the weakest spot compared to the peripheral -- >> denial is not just a river. >> it is not. let's talk about the role of the

central banks. is this the year that the ecb has to be more activist? >> the ecb is already got itself in a position where it is effectively supporting european economies very effectively. it solved the sovereign debt crisis. what a brilliant move. give these banks all that money to pile into european sovereign bonds, corrected the sovereign bond crisis which threatens to undermine all of europe. we have seen european sovereign bonds become a masticated again. all these countries like spain, italy, portugal, ireland have seen their banks holding a far greater portion of their sovereign bond markets. that has cured of that problem. we are getting to a situation now where the ecb by default is going to be able to continue that kind of ruling over the eyes of -- pulling the wool over

the eyes of german legislators. i don't think it will be that long before we see full-blown qe in the guise of some other program. i think the ecb will get on course. it just takes more time. the rest of the global economy, i think we will see coordinated, synchronized global bank action. to keep interest rates low. >> some other commentators would argue that 2014 is the year where we see more divergence and central banking policy. we are coming from a period where quantitative easing was de rigueur. now with the fed stepping in a slightly different direction, it seems things are starting to diverge a little bit. >> i think we will see that happen towards the second half of 2014 when it becomes clear that the pace of economic growth in some economies is such that you might have to bring forward expectation of higher rates.

the market will of course anticipate that. we will see concerns rise. i think the u.k. could be a market to watch where low rates could happen. it depends how quickly the economies grow. >> does it depend on the housing market? >> the housing market in the u.k. is critical. it is one of the main things that drives consumption. it will be interesting to see what it means for the concept of forward guidance. >> do you think the bank of england has done something wrong on forward guidance? --you think they have been >> it is a credibility issue. you cannot tell markets that interest rates are going to do something when it is markets that determine what interest rate are going to do. that is where it comes back and bites you. >> that is when forward guidance becomes obligated. thank you very much for joining us.

coming up, british retailer next raises its four-year forecast -- full-year forecast. we will see what its policy had to do with the story. stay with us. ♪

>> welcome back to "on the move ." i am an edwards in london. here are some companies that are on the move this morning. sold itsury fox

minority stake in star china tv. the company is divesting businesses in which they can gain majority ownership. -- can't gain the dirty ownership. -- majority ownership. payments.lock bp claims that millions of dollars of payments have been approved for businesses and what it calls fictitious losses. bp put the cost of settlements at more than $9 billion in october. it is doing dna tests on food and considering legal action after it discovered donkey meat in china from a local vendor. walmart says it with through all products from the supplier after it found fox dna and samples. moving on, next shares are gaining after the u.k. retailer posted numbers that were well ahead of analyst estimates. here with more is caroline hyde. it seems that this was one of

the winners over the christmas period. >> that is where their strength was. phenomenal numbers. that is why shares are at a record high. profite raising their guidance. they have come out with sales up. up 21%. if you're looking across the board, they are up almost 12%. that is three times where analysts had been expecting. this is trouncing the competition. ubs says it was a promotional bond fight. next didn't are taken that. overall they are seeing improvements across the board. they are giving money back to the shareholder. >> you talk about this non- discounting policy. how much did that help? a talked about how they are left with so little to clear. not only did they not discount, but they don't seem to have a great deal of stock to shift. >> people were just buying right

up until the last minute. you can order on catalog or online. they had a lot of footfall in their just days before christmas. they didn't go for promotions. they give clarity to the overall consumer base. prices byers slashing 30% to 50%. that is why we see that profit warning. instead, next promises that if you buy now, we won't change the price in a weeks time. we will only change it on boxing day. this did work out for them overall. it seems to have been the winning formula. see whetherto others will challenge them in the year ahead. next itself says, we are worried about next year. we set ourselves a really hard task. an interesting note, what they are saying at the u.k. economy. they say the u.k. economy is steadily improving.

>> but raising a flag about wages. what about the strong performance on and off-line? that was the same story we got from john lewis. >> john lewis is not managing to cannibalize themselves. there is a concern that everyone will stop buying online. is expandingdoing the amount of stores it has on high street to consummate its online business. you have click and collect where it is working. they are so popular, you have certainty that you ordered it and you can go into the shop. they are expanding their amount of stores by 20% over the next year to make that shopping experience easier. sure.m thank you very much. next, 2013 was the best year for the u.k. property market since 2006. we will speak to a nationwide chief economist, coming up after the break. ♪

>> welcome back to "on the move ." let's have a quick look at how the markets are doing. 30 minutes into the equity trading day here in europe, let's see how things are shaping up. the ftse 100 down by 0.3%. the cac getting the best of any gains by the european equity markets. the asian session was fairly mixed. disappointing chinese services data has been waiting on markets. u.s. markets moved lower yesterday i day -- away from record levels on the previous session.

the move on to the equity markets. we have had news out of the spanish economy. 1.36 is where we are trading on the euro/dollar. slightly lower inflation numbers and the spanish economy where indicated for the eurozone at least. on's get an update bloomberg's top headlines. closedd bitter cold highways and grounded thousands of plants along the east coast of the united states. the national weather service says blizzard conditions are possible along the massachusetts closed line and rhode island. aian stocks declined after services industry fell to a four-month low in december. china's nonmanufacturing purchasing managers index fell. measures week showed

of factory output also declined. goldman sachs to pay for its top u.k. bankers even as it declines its us-based peers like citigroup and j.p. morgan. goldman sachs paid an average of four points $7 million -- $4.7 million. banks reported. their figures for 2012 this week. 2014 maybe another booming year for the u.k. housing market. nearly three quarters of people surveyed by halifax expect prices to rise again. john ferro joins us now. he has been looking at what is happening in the latest data. >> if you look at some of the latest data, nationwide house prices coming in this morning, and 8.4% rise on the year. , house prices going on a

bit of a tear. this is the debate in this country at the moment. after the heavy days of 2007, the fear of a house bubble firmly in the psyche of those at the bank of england. you have energy costs rising, food costs rising. interest rates at record lows. plenty of people asking the question, what happens to the consumer? when those mortgage rates do start to rise. let me tell you the big issue in this country. it is the fact that demand continues to outstrip supply. some would say you have the government wrongly focusing on the demand side of the equation. looking at the help to buy scheme. if you look at some of the numbers coming out, you will see one billion pounds of mortgages applied for through that help to buy scheme in the first 12 weeks. this is not just about london. look at the nationwide report. there has been a second --secutive quarter, all 2k

thisone has an interest in whether you are on the housing ladder or not. all reports point to the same thing, the housing market is booming and people are expecting more again this year. >> thank you. let's focus in on the nationwide latest data. chief gardner is economist of nationwide building society and he joins us now from the company's headquarters. house prices up by 8.4% in december of 2013 compared to december of the previous year. that is far and away higher than the level of inflation we are seeing. it is higher than the level of wage increases. is it too much? the housing market together momentum through 2013. if you look at the first half of the year, the average monthly price gain was about 0.4% each month.

ed moved up to 1%. wage growth is currently moving up one percent per year. there is a gap there. debt servicing costs of mortgages, they are in line with the long-run average. if you look at house price to earnings ratios over the u.k. as a whole, that is at levels that were prevailing in 2003 as well. when it comes to affordability, things don't seem particularly stretched for the u.k. overall. data, ite of your shows that the ratio of house prices to earnings, we have seen that running above the long-term average since 2001. when you look at what to compare it to, does it give us any comfort to compare back to anything since 2001? you could argue that affordability has been stretched ever since. >> certainly when it comes to

the house price-to-earnings ratio it is difficult to compare overlong period's of time. you go back to these 10, 15, 20 years, there has been a structural decline in long-term interest rates which make it hard to figure out where the ratio should fit. it is certainly about the long- term average. maybe a better way to look at it is to look at typical monthly payments. that helps to show how much a borrower is paying to pay off their mortgage. at the moment that is around 29% of workers' take-home pay. mortgage rates are close to all- time lows. that is a key factor at the moment helping to support affordability across the market. >> how much support do you think help to buy is providing to the housing market right now? some people are critical of the policy. some say it is the right policy. how much impact is actually

having? >> the scheme has only been up and running for a very short period of time. nevertheless it is the case that credit conditions have been improving for borrowers for quite some time. they helped to bring down mortgage costs across the spectrum. we have seen an improvement in the availability of credit as well. including for borrowers with a smaller deposit. help to buy is just extending that trend. it has been part of the story but i think a key reason why it is picking up is the fact that the wage economy has been doing so much better. employment has been picking up in the last few quarters. employment now at all-time highs. that is a key reason why. it helps to explain why consumer confidence has picked up so strongly. i think that improvement in confidence was a vital missing ingredient.

that helps to explain my demand has picked up. the lessee has played a role but ofhink there is a number factors that can explain my demand has picked up so much. >> bank of england policy is also going to be watched closely. compared to the previous cycle, the bank of england has more tools at its disposal to look at and to recommend action in the u.k. housing market. they will be looking for any signs of a housing bubble. they don't see one yet. key attributethe of the housing market that would suggest we are in bubble territory? we know a lot about property bubbles now. agree with the bank of england. you have to look at wide range metrics. some of the most important are to do with affordability. what we have seen is that at the moment, it doesn't appear to

stretched. will -- if house price growth continues to outpace earnings growth, then there is a risk that affordability will become more stretched. i think that is going to be one of the key areas where the bank will focus its attention, whether or not borrowers are able to cope with typical mortgage payments. >> robert, thank you very much for joining us today. 8:39 here in london. up next, after just three months on-the-job, remi cointreau's ceo is stepping down. more on that when we return. ♪

>> welcome back. " on is "on the move bloomberg television and streaming live on bloomberg.com, your tablet, phone and any windows phone. let's take a quick check of the commodity market this morning. gold be heading for its biggest weekly gain since october?

gold coming under considerable pressure in 28%. today, up by 0.7%. nymex benchmark is currently up by 0.2%9563, compared to the previous data close. with oil in mind, as russia and the u.s. argue over human rights and the fate of edward snowden, the country's biggest energy companies have found something they can agree on. arctic oil. ryan has been covering the story. >> they are set to drill their first arctic well this year. they have been working behind the scenes for the last three years and this could get very big. nexthave been doing size ics and they have found what could hold more oil than the entire oil gathered in the north sea. it could be extraordinary. the problem is it looks like

there should be oil there. you have to drill down and find it. he could be oil, it could be gas. or it could be nothing. they are pretty confident. >> why are these two businesses working together on this? >> because of all the political rhetoric and the bad relations between the two countries, you would think they wouldn't. is this is business. i have a lot to offer one another. t is the largest publicly traded oil producer in the world. they produce 5% of the world's oil output. it is pretty extraordinary. they don't have very much expertise though and they don't have a whole lot of technology when it comes to drilling offshore. this is where exxon could out value. -- add value. 7%ir share price fell about last year. investors don't see the value the company.ize of

exxon on the other hand, $435 billion company. apple as theth world's most valuable company. it is big. they have a problem. despite the fact that their share price went up 70%, they have an output issue. them an access to russia's reserves. potentially, to reverse their production bubble. rosneft can also access the fields that exxon has. the gulf of mexico and stuff like that. importantly, access exxon's balance sheet. whatever they drill in russia, it is exxon that pays for the drilling and hit hopes to get the money back. >> perhaps that works for both of them. have they always been so keen on a relationship? >> they were keen. oil companiesn and not come out unscathed.

>> they were talking with an oil company called yukos. >> i remember them. >> they were looking at selling their stake to exxon. then, of course, he went to jail. he got hit with tax evasion charges. the company tossed its main assets. they were confiscated to pay back taxes. the ceo of exxon said, never again. as you can see, 10 years, there is not a whole lot of available in the world -- oil in the world that these companies can access. all those companies are not really looking for exxon to help them get their oil. >> one to watch in 2014. thank you very much. is coming up in 15 minutes time. i will be joined by guy johnson. what is coming up? data get market approval

out of the u.k., construction data as well. we will be watching that in light of the numbers we have already had out this morning. you have been talking about nationwide. continue to focus on what has been happening in the retail story as well. companiest how maybe are going to fare in 2014 versus --ey 13, how many companies next numbers today very good but it hasn't been that good for other parts of the high street. the main event, we are talking about quinoa. this super food that is loved by actresses such as jennifer aniston is set to become a major part of the food chain will believe. that is the ambition of one of our guests. we will talk about why and what is going to happen. it looks like a fairly basic set up, skilled into something a little bit more mainstream. have a hundred garcia is joining ndro garcia isja

joining us. >> we will ask them if it is still having potential in 2014. thank you very much. here are some of the companies that are on the move this morning. glass for remote start. hyundai's plan files -- follows similar plans to integrate wearable devices with their vehicles. cyber attacks over the holidays involving companies like snap chat and target show how companies tend to be more vulnerable to hacking during this period. to avoid changing code at this time and more shoppers plugging and credit card information are attempting -- blackberry is parting ways with alicia keys after a year- long stint with the company. the r&d singer failed to bring

in a love affair with the smartphones. announced the resignation of its ceo after the close yesterday. job sincen in the only october. here with more details, caroline hyde. will this be something of a surprise to the market? >> he had only been in the job for three months. the numbers hadn't been so good since he took tenure. 22% slide in the share price since he took over in october. what it does seem to be a bit of a surprise. shares are down this morning. he said he is quitting for personal reasons. that is what the statement said. he is going to stay on as a development director so he has some rains there. he is responsible for the assignments he has already started. for the time being, the chairman is going to become the interim ceo. the company is going to have to

hunt for another leader. a difficult time for the company. tough time fora this cognac maker? >> analysts had expected the share price to rise on the backs of this. it had been a torrid time. perhaps the numbers had pushed his decision today. the numbers have been poor. got an update saying they expected a substantial double-digit decline. the reason is their vast exposure to china. the chinese are clamping down on giftgiving, reining back the luxurious evidence that many of their government officials host. you are not going to be consuming quite so much cognac unfortunately. ryan tells me that he has still been going in guns blazing. he wasn't able to make it. he tried his best. generally they have been raining

this leavitt expense back. we see the share price deteriorate in the last few months. chinaposure to particularly in the luxurious drinking area has been hitting them hard. it is not voting well. >> thank you very much. caroline hyde with the latest on remi cointreau. final thoughts with our markets team coming up next. before we go, we will leave you with a live shot from new york. heavy snow, strong winds, very cold windchill, all expected or being seen already in the northeast of the united states. if you have travel plans in the region, we will keep you up-to- date on everything you need to know on that. final thoughts when we come back. ♪

>> welcome back to "on the move ." they specialize in 3-d software and are moving from businesses to consumers with a new product to help design your home. >> i am vp for dassault systems.

we are presenting a new online service. you have the possibility to that you canouse customize to fit what you already have or brand-new furniture. you can play around with colors, dimensions, floors. right now you have an avatar that helps you to get a sense of space in the room. addwill be able to additional avatars in the future. then you can really give life to your project. solutions that exist where you can find inspiration or solutions or you can put objects in a room or solutions to many other things. you don't have a platform or you can does on your own house so that you don't need to go see a kitchen designer or need to be an expert in anything. you can do it by yourself.

make it yours. spend hoursi could redesigning my home. welcome back. let's have a recap of today's biggest market movers. but check back in with caroline hyde. she is on top of one of those big as boomers. highxt trading at a record , stellar results. not only are they raising profit guidance, but sales trounced what others had performed. we saw an almost 12% gain in terms of sales for the fourth quarter. they keep on gaining. --y are also you would have thought they were stealing market share. mns is on the higher side as well. by thatthing was hit profit warning and the markets are trying to work out the winners and losers. i got a vintage number.

>> you collect vintage. carolyn, thank you. "the pulse" is up next. ♪

>> next cashes in on christmas. holiday sales beat expectations. >> remedy in the hunt for another new ceo. >> 100 million people that and down the hatches. a severe winter strong -- storm strikes america's northeast. good morning. we are live from bloomberg's european headquarters in london. i am guy johnson. >> i am an