from the fed yesterday. >> we got a minute yesterday. there is probably more nuance. iny are focusing on one line 25 pages. perhaps those forecast push higher baby thamaybe that is unwarranted. weak chinese data. >> very weak. another surprise, although it has not had much impact on markets which is why we have manus in davos. you have a special interview coming up. youill be about how reconcile this chinese data with everything else we have seen on the markets. >> yeah, francine. we have had two conversations. one on the whole chinese aspect. he said the chinese will support growth at seven percent. you have to trade those markets. alex friedman, globally his message was that the euro was the biggest challenge.

next up, the business of wealth management. the ceo juerg zeltner. one of the conversations -- what are the conversations he is having with clients around the world? what a mountain, fran? >> what a mountain. a couple of mountains. some exclusive and great conversations throughout the morning. t corporate nose. -- news. >> is this the turning point? it is the best clothing sales he has seen in three years. like her like. -- like for like. up .06%. not much growth but it is some. we are starting to see the models starting to get payoff at the till. we are expected marks & spencer to trade higher, up 2.7%%. . the clothing is looking better. big bets on international

growth. >> picking up international growth, we go through carrefour figures. 2.7% you are watching greece. >> a government spokesman has said that they are starting to raise 2.5 billion euros. he says the offer is six times over described. versubscribed. the books open officially at the top of the next hour. all day toke get results. some people are talking about a yield of under five percent. given that the five-year is yielding 5.87%. that would be a huge success for the government, but mainly a political one, francine. >> david, thank u so much. we will have plenty more from greece. we were mentioning those chinese

data in terms of trade. fell. at the same time we're hearing from the premier that says that the nation is trying to roll more policies. the markets are at ease with what we're hearing from china general feeling is that, of course, china is slowing. we have unexpected figures below expectations but at the same time because it is still not integrated in terms of the world economy, and the government has such a big handle on it, they can manage this. >> everybody is giving china the benefit of the doubt. look at those trade numbers. the export numbers contracting again. how much can you read into this? read much into this data. they are given the benefit of the doubt. the government says 7%. how will they do that? can you deliver seven percent growth and to the reforms they want to do as well? >> that will play out over the next three to four years.

it is like moving a huge tanker. people say, even if it is 6.5%, if it goes below six percent as when we start worrying. jon, what else are we workinloog at? >> greece. crisis over? is this the search for yield gone too far. u.s. higher. fed minutes more dovish than anticipated. expected to carry into europe for a higher open. the ftse 100 up by .8%> dax up by .25$. %. chinese trade data is weaker than people anticipated. forrise contraction exports. imports lower as well. this is what copper is doing. training lower through the morning. china the biggest consumer of the metal. coopepper shaking off the early decline. looking at the aussie dollar. this is something that is not

paying attention to that we data out of australia. usually this one goes lower off the weak data out of china. the sex performing major -- the sixth performing major currency. economists, all of them think this could go low lower throughout the year. this one pushing higher because once again the data out of australia beating forecasts. unemployment coming lower. this one right here. is it evidence the rba will finish that easing cycle, or is this the kind of headache they do not need? >> thank you so much. jon ferro with the latest on the markets. joining us is the head of european equities at old mutual investors where he helps oversees nearly 16 billion pounds in assets. thank you so much for joining us. give me a sense of where we are in the markets right now? earnings season. a lot of focus on fx. and valuations.

analysts had been trying to talk down -- their earnings just because it seems they are tweaking the cost cut instead of growing. >> i think the numbers have been burdened in the first quarter because -- particularly emerging markets fx side. that has led to some downgrades during the first quarter. that is low-quality downgrades. fx can easily bounce back again. i think what is happened is the markets have been an upward ranging trend the last couple years. we got to the upper end of that trend. >> central banks. >> it is. central banks are very accommodative at the moment. >> in terms of the earnings crop, are you worried that this is a fictitious shareprice growth without real fundamentals. we are seeing growth in europe, sure. but 0 point something. >> it is a small amount of growth is coming from negative growth. you have a big inflection coming

from negative gdp growth last year to positive dep growth this year. --positive gdp growth this year. company earnings we're looking at 8% to 10% growth this year. that is down a little bit from where it was the beginning of the year. that was mainly to do with overseas currencies having an impact on earnings. >> profit growth comes mainly from cost cuts or are they selling more because the consumers are getting more confident? >> it's both. we're still getting the cost cuts, but i think the growth will start to come through because consumer and business confidence in europe is picking up nicely. i think it is a lag effect. all of the surveys have been trending up for a while. the earnings have not caught up yet. it's just a lag. >> i will ask you more about your favorite industry groups shortly. now, here is a look at what else is coming up on "on the move." we will head to davos for views from the world's largest 12

wealth manager. juerg zeltner joins us of his lucidly. --exclusively m&s sales pick up as asia slows. ♪

>> welcome back. i'm francine lacqua. this is "on the move" on bloomberg television, radio and streaming on your phone, tablet

and bloomberg.com. this is a stock that is on the move. it is lgmh, one of the biggest luxury companies in the world. uitton. louis v is getting 2.8%. lvmh reporting after the markec said that fashion sales helps to cushion the decline in sales of alcohol brands. this was affected in china. we will keep on top of that and go through some of the other luxury movers throughout the day. is the retail revamp at m&s working? for an update, let's get straight to our business correspondent, caroline hyde. walk us through the numbers. this is the best in three years, but it started from a low base. >> you write. if you're looking at clothing, we saw .6% gain in like for

like sales. mark bolande is going to shout it from rooftops. the money he is throwing into online. notably getting the likes of thompson,x, emma celebrities to be on their adverts. clothing, the best we have seen in three years. there are a few buts. 11th quarter we're seeing of declines in general merchandise sales. that is clothing and home where despots enhance. that was down-- homewear, pots and pans were down. food was brighter as well. valentine's day. a record number of dine-in meals sold. and mother's day, a record day for chocolates and flowers. we were splurging. overall, it is still

competitive. we're still seeing them saying profitability could be under the gun.we are seeing estimates for a .2% decline in forecast. we are likely to see a full year don your trip for profitability. those adverts are starting to bring in the female buyer. >> the uk seems to be looking brighter, but mark bollande is betting on international growth. >> fascinating the amount he is betting on international growth. 250 new stores. food outlets in paris, trying to woo the parisians. they are going big with food. expanding with lingerie and standalone bebe stores in the india.okes of saudi arabia and he's playing to his strengths and rear retaining -- reorienting himself. the aims are big.

your revenues, your sales by 25%. up your profit by 40% in three years. he's betting big on international growth. >> staying with retail. one of the biggest retailers in large, but also has a presence in south america -- south africa and asia, carrefour. >> it is matching estimates. we have started to see it move in spain. two straight quarters of growth at the spanish unit. it is important because it is the third biggest unit. shares are off by .6%. sales in the first quarter down 3.7%. europe. france, the home territory, hypermarkets not paying off their. sales are declining. italy another key area of concern. sales not turning around and italy, either.

it is all about growth for them and the emerging markets. latin america, china. with foreign currency being very weak, that is going to impact sales. not much light at the end of the title for -- the tunnel for carrefour. >> still with us for more investment inside is the head of european equities at old mutual. kevin, thank you for sticking around. retail is going to a tough time. we are talking about the subdued growth. europe still. you like ukdo retailers? >> retail is a very stock specific industry. it is difficult to generalize. my portfolio -- i have all along -- a strong portfolio in next. it is a great internet offering within continental europe. the only retailer i own is the tonish discounting store, play on the recovery in the

domestic economy. >> because you have to pick the right stock with the right offering. and he can change six months down the line. talk about the industry groups you like, and we will hone down on the civic stocks. you like hiking stocks. is that you take advantage of growth? -- you like banking stocks. >> it is. what is the best way of playing that? bank stocks. loan growth wil; expand as economies expanl. >> this is before the asset quality review. >> the banks have cleaned up their act already. the national governments do not want to see the ecb when it takes over as the regulator and overseeing having to do a lot of activity in their own nation.

at the moment, italians are undergoing a big cleanup operation because the bank of italy does not want to be embarrassed when the ecb takes over. >> talk to me about your three top picks. in terms of the banking sector, you are playing banco popular. >> it is a purely domestic bank in spain. it will benefit from the recovery that is happening at the moment, which is going through a big inflection. the other good thing about the spanish market is that the inking -- the banking industry is consolidating. so i think the spanish banks are in a stronger position because of all of the unprofitable banks have all gone. so business is done in a profitable basis. opular should be able to gain that kind of return on these it was making pre-crisis. >> interesting. we have seen a lot of investors saying there is a lot of opportunity is banished banks. we will keep it through some of

the other stocks we are watching. i want to bring in david tweed, because european companies are cold and your record levels of - european companies are holding your record levels of cash. >> yeah. it is really to do with the corporate strategies that are being followed by a lot of company since the financial crisis. using cost-cutting. they have been reducing investment. they have been increasing dividends. bloomberg has been crunching some numbers, and the results are i watering because they look at the cash balance of european companies. and workout that they are sitting on 2 trillion euros of cash. they also dived down into stoxx 600 companies. let me give you some of the statistics. stoxx 600 companies are likely to pay dividends of 11 euros a share. that is the most since we got down to 2002.

at the same time as they are increasing the dividend, cash flow also is up. expected to be this year 37.45 euros a share. that will be the highest since 2011. at the same time, capital expenses going down. 18 euros. that was last year's average and the stoxx 600. the lowest since 2008. this is a big concern because when you have got such a fragile recovery, as the one we have in europe, you could see that the discrimination of some european companies to be investing, holding the recovery back. >> yeah, and david, this is what investors want. they are demanding short-term returns instead of long-term growth gains. >> that's always the way the commentary looks like. they say that people are too focused on quarterly results and everything, but i came across a letter that larry fink, the

sheet executive and chairman of blackrock, one of the biggest fund manager and the world, he sent this to ceo's last month. in it he says it concerns us in the wake of the financial crisis that many companies have shied away from investing in the future growth of their companies. too many companies have put capital expenditure and cut capital expenditure and also increased the debt to boost dividends. he's advising them to look to the long-term. that is what he wants to see is a fund manager. >> yankee so much. our -- thank you so mcuh. uch. we were talking about the topics you like. is there an opportunity for investors to pick an m&a stock? or that too risky? >> it is a bit risky. you want to invest in a company that has strong underlying fundamentals, strong valuation upside.

not just buying a car because you think it might be taking over. those kinds of companies have a premium already. it is risky doing that. m&a has turned to pick up in europe for the first time in a while. >> it looks like it is a sign that growth is here to stay. let's get to another stock you like. this is surprising for me because we focus a lot on luxury companies. daimler had some great figures. bmw the same. renault is a half hybrid company. >> think about renault is a friend to mystic rant. that is not the whole -- as a french domestic brands. they have been growing very strongly with that brand. they are also owning 40% of nissan, which gives them the global brand that will sell into china and the u.s. market where renault is not present. you have two other brands that are driving grwotowth.

the standard brand is starting to come through as well. uk a couple of days ago, that car sales in march were up 17.6%. renault sales up 100%. nissan up 23%> . >> they do so much for joining us today. ahead of european equities at old mutual. coming up on the program, the massive security flaw that left 2/3 of internet servers open to hackers for two years. the latest on the heartbleed bug coming up next. ♪

>> now it is the internet wide, bug that allows hackers to access encrypted user data. the heartbleed security flaw left 2/3 of users vulnerable. >> this is the data that you thought was protected is not, and it is all related to a bug related to an open source software that basically scrambles your data. so when you are sending a message on your computer about your banking to your bank, as it travels through the network, a scramble so that hackers cannot get into it and analyze your data. it seems there has been a coding problem. for two whole years.

it is called heartbleed. it sounds terrifying. but it is the part that is vulnerable in open fsl. it is called a heartbeat. a series of communications sent back and forth in between your devices. that has been open to potential hacking. so says google, and the company in finland. they managed to blow this open. no companies are scrambling to say they are fixing it. they're upgrading their licenses. >> it has not been fixed yet. do we have a timeline? >> 2/3 of websites use this particular type of software. we know that google and facebook, they have addressed the problem. they did that before became public. yahoo! got there later. ames andd leak user naem password. america, we of understand his companies are safe. change your passwords once you know the website you are using

is fixed. do not have the same password for most of their websites. >> that is the tip of the day. we are back and if couple of minutes. in the meantime, you can follow us on twitter. ♪ .

>> welcome back to "on the move." i'm francine lacqua here at bloomberg's european headquarters in london. we're 30 minutes into the trading day. let's see how things are shaping up. this is the picture for the markets. we did see quite a big surge yesterday. you can see the ftse, gaining .7% and the dax. there was disappointing trade data out of china. caroline hyde is at the touch screen with three stocks to watch. caroline?

>> i'm going on the optimistic side of things and sticking to the gainers. hays posting very strong increases in net fees. up 8% in general. asia a little bit weaker. europe up 11%. u.k. up 14%. they say we'll be at the top end of our profit target. hays the standout performer today. lvmh up 3.8%. leather good. trongest sales in two years. arks & spencer, up 2.4%. trying the get people to buy the clothing arrangement and getting it more stylish is starting to pay off. shares 2.4%.

back to you. >> thank you, caroline hyde there with the very latest on some of the main stocks we're watching today. these are the bloomberg top headlines. chinese trade fell sharply for the month of march. xports and imports missed. bloomberg is monitoring prospects for additional stimulus. speaking of surprise declines, australia's unemployment rate -- that sent y in australia to a high. eir jobless rate fell to 5.8%. greece, a sale of five-year bonsd could be worth 2 billion euros.

now for an exclusive interview interest u.b.s. wealth management summit, let's get to manus cranny who was standing by in a very sunny davos. is it sunny, manus? >> the sun is just sneaking through just in time for one of our guests, the c.e.o. of wealth management. he joins me now. great to have you with us this morning on "on the move." you travel a great deal. you talk to clients. you the front of this business. what is the biggest issue that is coming to forewhen you have those conversations at times? >> a little bit of how can you help me get access to growth. that is very true all around the globe. for now, with all the uncertainty in the markets, hey think about the markets. >> is it a challenge to convince them to participate?

>> yes, umple. a lot of people -- unfortunately. still nearly 30% cash. absolutely, yes. unfortunately, some of them, most of them, have missed the rally into the markets. people are very reluctant. still the risks often lie and may be risk neutral but we haven't seen a big shift yet. >> you spent i believe more than 30% of your time in asia. >> yes. talk me through the growth story there for the business. talk to me in a little more depth on what is going on in asia now. >> it is clear. there is a decade or two of growth to come. asia is the number one growth opportunity. i would say 70% plus of my net investment is going into asia and the emerging markets. if you look at the numbers that

we posted over the last couple of years, you could clearly see that it is accelerating and that's why we're happy with our franchise and we're continuing to invest. >> you're hiring. that is always good news. you're building up the workforce. can i expect that as a boom? as a flag. you're on a hiring march. is that just to meet the needs of your business right now? >> i think it is both. with the repositioning of our group, wealth management at its core. the attraction for people to join us has increased as well. people who want to be in this industry want to look at the platform and see whether they could be successful here. it is also due to the micro trend. you need to make sure that you also grow the population that can service these clients. we're very happy with where we are and we continue to do so. trends we imilar

have seen in emerging markets. i would say at the forefront, it is clearly less than america. brazil and mexico. you can go closer to europe in turkey and israel. you can look at what we do in the middle east. it is sort of half the pace of what we see in asia but we are growing. it comes at the expense of europe. europe is contracting. their numbers are actually going down, so in aggregate, it is growth. if you want to double click on the growth numbers, you would see actually quite an accelerated growth plan ination and emerging markets. >> there was this team last ear that institutions like you were having to pay heavily for talent. are you still seeing that? give me a figure. i saw your american colleagues say my wealth advisors produce $1 million a year.

what do you get out of your guys and girls? > i like where we are in terms of effectiveness on our workforce. however, if you think about paying up, a couple of years ago, how scombruge asia was much bigger than now. now that things are slowed in the markets, people have been in the market for two, three years. people realize that the realities are coming a long way. it takes a long time to make money if you invest organically. hat speaks to our size, right? we have been below breag breaking points in a long time. we make substantial amounts of money. all of this is still entered into the market struggle to make it profitable. it is one thing to show growth but ultimately you to have it in the bottom line. >> wealth management to me is having supper with the wealth

manager. it is about this relationship and technology is structurally going to change how you do business. what is the preparedness for that? >> i look at this from two angles. of course from technology you want to upgrade to your clients. you want to use it to monitor the portfolios. then interact and communicate with your clients. you want the clients to have easier access, trade 24/7 if they want digital and all of that. to me that is like doing more through technology with the same business model. there is still the question out there where basically the interaction is only digital outside the space of client advice. nobody has really sorted it out other than the retail space. i'm pretty sure we will have to think about that one too. >> quickly. this is a big topic. russia. are we underestimating the

impact of russia in tirps of the business and how -- terms of the business and how you see things? >> ukraine has caused uncertainty looking at the markets, right? quite frankly, a lot of it is solved. to me that sort of looks like -- so the real question is about ukraine. i do not see that russia has an interest to escalate beyond all the natural political debates they are having. nor do i see any interest in the europes or the americans, a serious one. i hope time will give the political establishment the right room for having a dialogue. to o not feel this is going be -- in the market. >> looking forward to the day ahead with you guys downstairs. i'll catch up with you later. fran, that's it from the top of the roof where you normally

are. back to you. >> yeah, manus. looking forward to the conversation. davos, verick os, looks like a great day. we'll debate yellen versus carney after the break.

>> welcome back. let's focus on the fed. the stocks are higher after getting the minutes from the u.s. central bank yesterday. the fed is admitting maybe they overstated some things a bit. joining us to explain jonathan ferro. >> it was a busy set of minutes. 25 pages long. a lot to digest. i'm going to start with the chart. you see the medium forecast for rate as policy makers see it. 1.1% and 2.1% the year after. now i'm going to pretend you never saw what i'm showing you now. the takeaway was this. several participants noticed that the increase in the medium projection. overstated the shift in the projections. some think that shift is

wanchted, but this does fit into the story that fed chief yellen has been pushing. markets seem to be taking this as a bit of a dovish signal right now >> yeah. the bank of england of course met idea. the skgs is today -- decision is today. is that a nonevent? >> bank of england on out pilot for 2014. here is three reasons why some people think that. you have inflation below target. the bank of england talking about something less clear. no real agreement at the central bank of how much there is left of it. then we have all of these changes beginning in june. now hardly anybody can predict what the composition of the central bank is going to look like. while most would say yes, no policy changes this year, i think this gets interesting when you get no more 9- 0 votes. they start going 8-1, 7- 2, 6-3.

we start debating when the first rate hike actually comes. >> for more on what we can expect from the b.o.e., we're joined by a chief u.k. economist at goldman sachs. they need to make sure they are on top of it because the situation could turn either way very quickly. >> this month, a nonevent. i would be very surprised if there is either a change or indeed a statement later today. so close as we are to the next inflation report. our views are we are relatively bullish on growth and dovish on policy. we believe that inflation will remain relatively low. we don't expect the first rates to take place until q 32015. -- q 3, 2015.

they are certainly not going to -- they will respond if they feel the need. but as it relates to today's decision, it will be relatively uninteresting. >> for the rest of the year, i agree it is probably not on autopilot. we have to understand exactly how this spare capacity comes into play and at the same time, if the i.m.f. continues upgrading their forecast, it may push the markets to think there is an interest rate sooner than there will be. >> the big debate last year was about demand. how quickly would growth in the economy respond, and we were relatively optimistic on that as was the bank indeed. i think the big debate this year amongst clients and economists and indeed between the bank of england and the office for budget responsibility, is how will supply respond to that demand? how will potential growth

productivity respond to what we are seeing? that is where the big division lies. we're on the optimistic side in that we believe that productivity will respond quickly. we think there is evidence of that coming through already. we expect inflation to be pretty weak and no need to urgently raise rates. >> talk to me -- one other point i picked up looking at your research was about the fact that you think b.o.e. will use macro policies to cool the market. this is the housing market. sometimes still not very high but it feels high to the people that live in this country. >> absolutely. the housing market, the turnaround for the housing market and house prices and housing transactions has been striking in the last year. this time a year ago, we, outside of london, house prices were indeed declining slightly. transactions were dormant. confidence was pretty low. turn the clock on by 12 months

and prices are up by 12%. mortgage approvals by 40%. confidence surveys suggested that things are going to move even higher. it is our view that -- actually prices given restricted supply, we're still a little bit below fair value. the bank of england has indicated that it is monitoring developments in the housing market and we think that it will use its new tool kit, the macro prudential tool kit to tarbgt mortgage standards later in the year. the more that the bank does to cool the housing market going forward, the less it needs to don on the venn ventionry monetary side. more targeting means less need for interest rate rises. >> will the housing price bs

the story for the next 12 months if the u.k. in general? >> it is a really big issue in the u.k.. one of the key issues. it is not a new problem but it has become a bigger problem now is the lack of supply of u.k. housing as it relates to housing construction, the u.k. -- housing supply has had a bust without a boom. construction was pretty weak before the crisis. it is even weaker now. construction has fallen to its lowest level since the second world war. construction is running at a rate of around half of household formation growth. so it is not surprising in that context that prices can, you know rrks headed quite sharply higher and will continue to head higher. how the bank of england deals with that and the policy, the supply side, how do they get home building increases quite rapidly i think is a big issue going forward.

>> kevin, thank you so much for your time. always great to have you on the program. chief u.k. economist at goldman sachs. "the pulse" is coming up. i'm joined by my co-anchor guy johnson. we'll be talking tech and fashion and luxury good makers. we will also be talking about greece. >> and we'll be talking about retail. annie lennox. emma thompson. are these characters we should be thanking at m & s'? they are going to be talking this story up. we'll talk about what's happening in the retail space next versus m & s and then carrefour as well. a lot going on in this space internationally and a bit of luxury in the upper end and how the chinese tastes are changing and logo fatigue. the new watch word we're talking about. lvmh, watch out. that story is going to be a problem and then we're going to

be talking about greece. back to the bond market. on the same day they are coming back to the bond market, we're going to have unemployment data out. they are going to tell starkly different stories. what is the real story? we'll talk about that. >> thank you so much. guy johnson. i'm looking forward to "the pulse" in nine minutes from now up next, the one shoe market that is more lucrative than football and basketball combined. racing to catch up in this sport and details are coming up next. ♪

>> when you look at -- in the next 20-30 years, it depends on the economy development of the world, the key markets are young people very much attracted by brands. -- much aware of the sport. those markets, also because of their fast growing base, they are generating more and more numbers of rich people for luxury side. >> that was the kering chief executive on the appeal of sportswear in the luxury market. he also said of course he is relaunching the puma brand in august with a 70 million euro investment. speaking of sports, one stock on the move is adidas. shares are down after forecasting 2014 profits as

much as 17% below estimates. much of it is of course to do with currency moves. when it comes to the sports, the most lucrative shoe market isn't football, basketball or golf. it is running. u.s., adidas is far from the leader. >> at the adidas innovation-lap lab in portland, oregon, the country cigaretting ready for a marathon. >> what kind of investment was this? >> we spent millions of dollars on r & d. this is one of our biggest programs. it is a multimillion dollar investment. >> adidas has high-tech equipment and is using science to grab a slice of the lucrative running smufmente >> if you took basketball and doubled it and took any shoe with a cleat on the bottom and put them together, it is

smaller thanning. women's running is bigger than basketball. it is just giant. >> why a fraction of the 30 million active runners in the united states wear adidas running shoes? the company wants to change that with a new spring blade and blue shoes. >> this is the market where we're most off. this is what we need in this market. >> adidas spent years creating the innovative cushioning that returns energy to the runner. runners world magazine called it the best debut of 2013. >> was it a big gamble? >> i think all innovations are a gamble of some sort. we try to hedge our bets as much as possible. >> adidas is also a technology company as well? >> yes. absolutely. >> after years of testing, the new shoe hit stores late last year. but it is too early to tell if their investment in innovation will make runners invest in adidas. >> i think this will help our

top line. bottom line. every line. >> now stay with bloomberg tv. "the pulse" with guy johnson is up next. meantime, you can follow us on twitter. ♪

spencer reports a pickup in women's clothing. but fast retailing slows as japanese shoppers hit the brakes. >> making money for the mega rich. davos with exclusive interviews with the world's biggest wealth management. >> the ostracism is over. greece comes out of exile. the first greek bond sale in four years is opening now. a car bomb reminds investors of the risk.