here is the idea. if you're going to make assurances to keep the nuclear unit inside of france. we're going to keep an eye on these equity markets. we are playing a little bit of catch-up in the united kingdom. bets from the ecb, info.with this u.s. trade let's check out the markets with jonathan ferro. >> going toward a seventh straight week on that particular index. this is her market open right now. bit of a pullback. that is what you have on the cac 40. ignore these two, the markets have not opened yet. -- marches uparks higher. happens when the

city of london takes a day off. the 30 day average. a huge chunk out of volume. yesterday, you missed quite a rally in italian bonds. below three percent heading towards record lows on the italian bond yields. european elections took the headlines over the weekend. the big one on the weekend was matteo renzi who got a huge stamp of approval. it sent italian assets higher. at 1.3654.llar is 2:30 u.k. time. ipos continued to come thick and fast. lloyd's lands to sell their part next the positive stake

month. euro shares will also be on sale sometime next month. will the deals be snapped up? here is caroline hyde our european business correspondent. offer for us? >> 25% of all the shares that are currently held by lloyd's. 1.5 billionmate of pounds value of tsp, shares are going to go on sale as soon as next month. lloyd's offloads its unit that has four .5 million customers, 631 branches across the u.k., making it england's seventh against lender. they had to get rid of this unit. this is the way they're going so far. clearly, they want to get ahead of any sort of summer lows.

>> the market is taking it quite well. nex. o me about euro quarks nor exact timing, but we do know there will be a share sale third it will be a private lace meant to some big investors. they will get their hands on the shares first, then it is up for the public, not only institutional but also retail will be able to buy into this. this is all about a bet on ronext. they are now spinning it off. it is all about betting that this is a company that can lift new shares and trade shares, but also trade derivatives and commodities. they made some big hires recently.

growth.area of you will be able to trade the shares in quite a few places. later in the year, they will be able to trade them in lisbon ain in portugal as well. they want to get ahead of the ull. that picked up below the original market range. that was a bit of a concern. notably, the retailer asked its plan to sell shares. a little bit of nervousness in the market. many are betting, particularly and tsb.d's ntsb --

>> joining us for his isspective on the top market chief executive and chief investment officer of northern trust asset manager. markets.ook at these the dax making record highs, the s&p with record highs last week paired are you as bullish as some of these market highs tend to believe? >> what we're been doing is focusing on fundamentals. tries to beonsensus more bullish, to expect further gains. we're seeing new highs being achieved. the ability for it to produce significantly higher highs throughout the year is significantly and question -- in question. >> holding onto the overweight

position is key. it talks about the volatility index in trades. relative to buying downside protection in the market. can you see the back six months of the year potentially holding more volatility arco no market trajectory holds forever in one direction, does it? >> no. in terms of the longer-term process around price valuation, a pullback in certain circumstances is healthy. it does clear the market, but it puts some commonsense view back into the marketplace. what we're looking at is what could cause that pullback. it a significant increase in geopolitical risk? is it an increase in the russia and europe situation? >> i don't know how to put it. are there many risk events? we have quite a few in the first six months. 2013 and go back to

even 2012 in terms of shocks. and in some cases nonexistent. the geopolitical side is an important one, but if you focus on the fundamentals, the word you have used earlier, ipo fatigue, some of the fatigue coming around in q1. q2, but alsot underlying growth statistics, they are still reasonably positive. q1 have some catch-up from to q2 -- >> you will stay with me. here is a look at what else is coming up "on the move. " lloyd's gives the public a taste b. ts

china retaliates against the u.s. over spying claims. what is the issue for ibm? we will tell you exactly what it is. ♪

quarks is most likely to be in -- >> it is most

likely to be a reduction in -- what is important is to work with attention to the euro devaluation because if we need to grow, we need to have internal demand. executives the chief call forina with his car the ecb's next move. here is one stock that is on the move. you can see intercontinental hotels. press reports over the weekend that intercontinental stock is trading at an 11 year high. the biggest move since april 2003. a rejected a takeover bid in the u.s.. they're valued at more than 6 billion pounds. we'll keep an eye on that stock

through the day. onll with us for his view bowers.s wayne he knows a thing or two about what to do with risk. talking about negative rates. talk about what he expects from the ecb. he better deliver next week. is that fair? there's a huge amount of expectation. >> i think the way drug he has played this in the last 6-12 is words are greater than actions. the market is not losing patience, but it wants to see action now. down to zero cut is virtually priced in. perhaps if funding for lending program, to really hit and reduced the cost of credit and the availability of credit.

we think that would not only increase economic activity and be funneled through not only to member states but the systemically important banks as as the ecb has a regulatory role to be able to adopt. it ties in nicely. if you look at the process of how that could be adopted, a modest rate cut, funding for lending, introduced and i mplemented with the potential for qe coming in this year or early next. worst risk cases they just give a very modest risk cut and leave the market guessing. >> let's hope for the optimistic side on delivery. as an asset manager, you look after a considerable amount of money. how should i position? how do you position, how do you think about asset allocation when you see europe going down this easy road?

said, beginning different roads. much in a press the accelerator, press the brake situation. the effect it has an underlying growth can be the same. with the bank of england rate hike, it could be seen as a sign of positive economic omentum. we've got to a fragile economic recovery. of positivity. from a european perspective, the market needs some relief and a reduction in the cost of credit and some action versus words. again, that would indicate more of a push from a risk as perspective, especially if you had some quantity tate is using introduced. even if you had the ecb starting with the qe program that the fed is exiting, it could have a

similar effect on the risk asset profile. >> all roads lead to pro-risk. meantime, i want to turn our attention to the ukraine and the president-elect, petro poroshenko. setting ukraine on a collision course with russia, for want of better words, ryan chilcote is in kiev. this is strong talk, this is fighting talk, if you want to sum it up, from petra schenkel. or am i overstating this? -- from poroshenko. this? overstating >> with mortar fire and helicopter gunships. try to retake that airport in donetsk as well as a train station in the center of the

city. that is not the only place we are seeing fighting in the east of ukraine. on the other side, we're definitely seeing a hardening of wills as well. more forces coming in from russia this time into ukraine, describing themselves as chechen volunteers. important to point out that these are not conventional russian forces as far as they are concerned. they're describing themselves as irregulars that have volunteered the fight with the separatists. we saw video of a group of 30 or 40 of them, eyewitnesses on the ground say they saw a convoy of up to 10. we are seeing escalation on both sides. minutes, the ap has tweeted that they have seen 30 dead rebels this morning. clearly, things are picking up in the east of the country.

>> the biggest commodity, the single issue is gas, whether it is for europe and certainly the ukraine. it looks like the noises we are somend be inching toward kind of deal. what he seen so far between the ukraine and russia? enough, you could call gas another battleground in the complex between russia and ukraine. there's a tentative agreement reached yesterday between ukrainians and russians. it had to be agreed by their governments by the end of tomorrow, whereby ukraine would pay russia $2 billion this week and another half billion dollars by the end of next week to avoid a supply cut that russia has threatened in the middle of next week if that plan does not go forward. the sticking point, however, is the ukrainians are saying that before the payback at 2.5 billion of the 3.5 billion that the reo, they want an agreement on the gas price if they're going to buy gas from. they get half of their gas from russia going forward.

russia says no, first u.k. and then we will agree on a price. definitely, this is a step in the right direction, but by no stretch of the imagination are both of these sides in agreement just yet. >> we will leave it there. we will speak to you throughout the morning, ryan. now, wayne bowers is still with me. when you hear what ryan is schenkel --, petra poroshenko is not going to roll over, is he? the disruption of energy prices and resource, how does that affect the developed economy, especially germany and the rest of europe, especially from a gas and energy requirement perspective. you could see a significant increase in spikes in prices from a developed government point of view.

worriedprobably more about the security of the energy resources and that the price. if they can guarantee a certain .mount of private -- of supply >> carry that thought for me. you mentioned in the same breath what it means for emerging markets. .e had the elections we've had a small room pretty even in terms of the american market. how do you position yourself in you, versus developed markets, versus core europe and core u.s.? >> we mentioned our overweight risk position. we have had an underweight and emerging-market stocks and we maintain that view. what we are looking at is obviously not only the valuation, but also the political upheaval, the volatility around economic roads and fundamentals. there are some economists that

are ok, there've been hit quite hard around some of the pullback of easy money from the fed tapering perspective. they seem to have hit some kind of bottom as well. asiank at some emerging countries. they are on our radar screen. the one concern we do have is china. china does have a reasonably difficult problem around trying to rein in control of the landing. also maintaining a modest economic growth profile. from our point of view, six point 25, 6.5% growth would seem ok versus central government trying to get 7.2547.5%. we expect that to continue into 2014 and 2015 for china, slower but greener. more broad-based economic growth, which would support emerging markets. from our perspective at this point, we're just watching and waiting versus going in.

>> locked and loaded and ready to go. thank you. .oming up a key concession could put ge closer to their deal with alstom. ♪

>> welcome back to "on the move." time now for some company news.

astrazeneca are lower after pfizer abandoned its 69 billion pounds takeover of the company. pfizer said the opera represented its full value under the u.k. takeover rules. pfizer is now required to wait at least three months before restarting talks with astrazeneca. it involves a potential $20 billion deal involving all ports and rail projects in the area agreed upon in the world's largest on tap iron ore resource. malaysia air says it will not seek bankruptcy and will instead accelerate an overhaul to break even next year. company shares plunged the most since 1998. this month amid investor concern that the government may let the company failed. said its jet disappearance in march put additional stress on operations.

general electric ceo will meet the french president francois hollande to make their case for the acquisition of alstom international. our international correspondent has a preview. runs hope that everything according to plan and on time, shall we? >> that is only if you are on the ge side. from the siemens viewpoint, you want this meeting to go badly. you used the word robust. what we expect is for them to make ironclad assurances to the french state. there is a nuclear aspect and a nuclear unit instead of alstom will stay inside france. his a quiet -- a quote from the head of operations. we will answer the government's legitimate demand that they'd nuclear unit remain french and that exports be protected. that is a pretty clear signal

that would ge wants is they don't necessarily want the train unit, that will stay in a alstom unit. if they don't have approval, it will be difficult to get francois hollande who is in a more difficult position after election results. what does he do with this offer from ge? of course, siemens is also waiting in the wings. give me a clue here. siemens, what will they do? are they going to make a move? what is the thinking? >> there is a report out from reuters over the weekend that they are going to offer 7 billion in cash along with their rail unit, and then siemens would hand over that rail unit. they get the nuclear energy business and that is what siemens gets. we don't have a formal offer from siemens. >> ok, hans. up, a new president and a

new path. will ukrainians benefit from a closer relationship with europe? we will discuss the issue of .kraine and emerging markets ♪

>> welcome back to "on the move." 30 minutes into the trading day, equity markets are finding it difficult to get an exact direction. it is going to be about what draghi says to the markets. today is about postelection examination. that is what the market is going to look for. let's get to john farrell and some stocks to watch. >> there is only one stock i am watching, and that is intercontinental. biggest gainer here in europe. an 11 year high. no comment from the company.

rumor is circulating and the market is buying. back to you. thank you for that. government is in discussions with commercial banks reliant on the service compromising the nation's financial security. american prosecutors recently indicated five chinese military officers were allegedly hacking into u.s. company computers and stealing secrets. says a chinese vessel sank one of its fishing boats in what could be the most serious for theral standoffs countries since 2007. the government says 40 chinese -- in economics own exclusive to vietnam.

russia, ukraine and the eu thated a tentative deal would help avoid russian gas cut off. ukraine state energy company would take -- would pay gas prom $2 billion by friday. half $1 billion by june 7. that would harshly cover gasine's expanding debt for deliveries from november 2013 through to this year. ukraine, ryane chilcote spoke exclusively to the former georgian president about the crisis. this is normally a regular of russian army military intelligence. >> they said they were volunteers. >> they looked like them and behave like them, but armed for a proxye sent

war. certainly we are talking about no large-scale invasion. , iry night, even this night heard from our friends in the think whaternment, i are russian troops and looks like russian troops. we are talking about military invasion. let's not fool ourselves. >> this is a military invasion by russia, then. >> what else would you call it? they are behaving like professionals, killing lots of people. i think they're preparing to expel ukrainian troops from those two areas. it looks like it. there will be a tough challenge and a tough fight. >> you have met president routine before -- president your countrywhen

was at odds with moscow. will you recommend to him going into that meeting? poroshenko who is certainly moderate and a reasonable guy, sort it outwant to without western help. rush is pretty weak. has a strong putin will. the west doesn't seem to have will. it doesn't seem to be willing to confront him. they're looking for all kinds of excuses. wantserstand no company to lose profits. at certain moments they will have to apply real pressure. they will really have to switch .ff this cash machine it will happen sooner or later. the later it happens, the higher price europe will have to pay

for it. it is a deja vu, it is the same story all over again. >> let's stay on the ukraine with socgen. ,hen we look at the results when you listen to these kinds of comments, how do you assess the situation? vote ando wins the russia says they will talk. >> actually, it is a positive overall. we have a new president in ukraine, a strong-willed person. to me that is a positive. now we start the next phase. truly, we are at the crossroads. i take some comfort from the tone we have from russia. the ball is in russia's court, in a way. do they still want to work with the new president as they claimed last week? >> or when you look at what

poroshenko is saying, there will be a decrease in antiterrorist operations. that is what we're hearing from -- this is not a calm situation. oh, new president, let's move on. it is not at all that. >> on the ground, there are a lot of tensions, of course. the eastern ukraine region remains the key zone of turbulence, but let's watch for russia. for me that is the critical point. that they maynd pay $2 billion and half $1 billion after that. getting a gas settlement, is that important? >> it is. i have all trust that this will go through. with a stable government from the ukraine, i am not concerned

about the financial situation. ukraine can rely on strong support from the international community. .> let's talk a little more we have a lot of elections going on around the emerging markets. i am not pitting the two of you against one another, but why not? they say emerging markets are roaring by, is a phrase that is being used. would you be as bullish as that? polish on emerging markets. i am sorry to disappoint you, but i think i published a report two weeks ago, the return of the bull market in emerging markets. if you remember, my big story this year has been doom and gloom in the emerging markets. doom has been short-lived. phase.now in the bloom

>> even with the potential of off currency? south african rand, mexican peso, those look good by my standards. >> india has had a cracking round. where are we now? that excitement said to dissipate in terms of the indian story? >> well, strong story, a lot of expectations. from a market perspective we are moving to a market making -- to a profit-making road. investor, there's nothing wrong with taking profit once in a while. -- wewould check with you will check with you as we go ahead. from one of the

leading voices in that area. coming up, u.s. and china. ibm gets caught in the crossfire. ?hat exactly is happening we will talk about that when we are back after the break. ♪

>> i'm manus cranny in london. this is "on the move."

this is one stock that is back in investors sightlines. pulled the plug on their $117 billion offer for the company. they walk away. is three months now. astra has to decide that they want to welcome pfizer back to the table. regrets.way with no we offered a full and fair value. that was ian reeves comments to the british press. that is the drug story. let's turn our attention to china and the chinese government. the are said to be pushing -- our correspondent has the story from berlin. hans, this marks a clear escalation in a dispute with the u.s. over spying. is it tit-for-tat or is it becoming something much more

substantial? word, that would be substantial. iesn you look at the compan that portfolios in both companies, we are talking about huge businesses. this move from the chinese government and what they're asking the banks and financial institutes to do is consider switching their servers, getting rid of the ibm servers. as according to four people familiar with the matter. some great reporting from our chinese colleagues. this comes after the indictment by the u.s. department of justice of five army officers who were indicted for potentially stealing cyber secrets from companies like anda and u.s. steel westinghouse.

asia-pacific 23%. that is not all china, but some of it is there. i say tit-for-tat would be serious because over the weekend there are reports that management consulting groups were also being -- the chinese authorities were urging chinese companies not to rely on them, that is according to the financial times. it will mark a poisoning of relations and some serious concerns for u.s. businesses have long staked -- that have large stakes of units on the chinese expansion. >> we will leave that there. hans nichols in berlin for us. "the pulse is coming up at the top of the hour. >> that story on cyber security, relevant.very we're speaking to the founder and chief executive offer of

digital shadows area today cyber -- it is a cyber security company. it begs the question, what can companies do to secure the digital footprints of their clients and employees? we're speaking to alastair paterson. confirmtion results there is a north-south divide within europe, and it begs the question, will it result in the easing of fiscal policy? or monetary policy following druggies comments yesterday. the monetary policy meeting that will take place next thursday. christian will ask those questions. pfizer has walked away from astrazeneca.

what next for astrazeneca i? will its shareholders pressurize the company to talk to pfizer after this three-month gap? pfizer?ean for internalursue his strategy of splitting the company, maybe, selling off -- not selling off, selling off the branded drugs and older drugs. there's -- those are the two big internal divisions. busy cult today, manus. i will see you in a few minutes. "the pulse" today, manus. the bank will list shares here in london and expects ts be to pay enormous dividends. 64yd's has announced

investments worth about 11.4 billion pounds. intercontinentalexchange group euronext sharesf in belgium and france. the company could be valued at 1.5 billion euros. the ecb is expected to cut rates. we spoke to bloomberg from the ecb for him in portugal. >> there will be a reduction in the interest rate and a negative deposit on the ecb. what could be important in my --w is to work with inattention to the euro devaluation, because if we need to grow, we need internal demand.

, malaysia air has yet to restore confidence in its brand. it is working on a full-scale review. details next. ♪

>> will come back to "on the move."

i'm manus cranny in london. it has been more than two months since the disappearance of malaysia air flight 370. the carrier has been working on a full-scale review of its business. despite struggling with losses and rising competition, the company says bankruptcy is not an option. i'm very confident we can do that. malaysia airlines has been around for over 40 years. we have a world-class reputation. we are one of the only seven airlines in the world that have a five-star rating. have in the crew last 10 or 12 years one world's best cabin crews. safety standards of malaysia airlines are on par with the very best airlines in the world. >> how realistic is a turnaround tackle the sell rating on the company has dropped 18% recently. investors are not buying into

the turnaround story. >> yes. i think our turnaround story was moving along. 70 didn't help.nce shares have also dropped. the management team will want to make sure that regardless of 2014, we need to make a turnaround for 2015. i think it would be unreasonable to expect with the level of disruption caused by mh 370 that any plan we had from september last year will survive into 2014. our process will be, let's recover as much business as we can. >> is bankruptcy an option? >> they don't see it as an

option at this stage. people make comments that bankruptcy is one way to allow you to restructure the airline. >> it depends on the rules that apply to malaysia airlines. in various jurisdictions such as north america, there's chapter 11 bankruptcy, which allows a company to reorganize itself while being protected from creditors during the reorganization phase. i am not sure, since i'm not the finance guy at malaysia airlines , what the rules are for such structured reorganization. >> shares for malaysia rose the most in 11 days. i can tell you, the stock did rise most -- it was a pretty good bounce. jonathan ferro has been looking at the markets. caroline hyde joins us with a recap. tsbhave lloyd's and the banks. >> we are expecting lloyd's

within the next month to start selling shares in tsb. will be up forat grabs to begin with. that could be up to 300 million pounds. tsb's general consensus view that it is 1.5 billion pounds in total value 25% to be sold first and the rest by 2015. europeans get a chance to get onext.hands on the euro n will be looking at this particular sale. the likes of pete -- bnp party bus. all eyes on new shares to be bought. >> of course they have access to the whole clearing outside. what was your take away from that, and what can we expect

today? >> comprehensive speech delivered from mario draghi yesterday. he in a cave at that rate cuts are really on the table. almost everyone expects a rate cut. he signaled the credit easing, supply of credit, demand for credit over the coming year in not just the whole of the eurozone very here's looking at portugal and spain. that is really the big debate right now. how does he debate those issues in those particular countries? that is the big unknown for next week. theermany versus some of referral countries in access to finance. spain, 25%, portugal, one third. those countries get the demand for credit, he wants to know what the supply is very at it might not be up to meet it

here he wants to bridge that. that? s he does tho >> there is this proposition that the bond market is retired. >> there is a bit of a cooling off in the initial share sales. last week we had the story with saga. the price they got further the shares was not at the highest end. there was concern that the demand was not there for -- from there is aal -- little bit of caution on getting a hand on initial share sales. it is not putting off the likes of lloyd's who know they want to and on thehares down table before the summer lull. stay with bloomberg television.

.ostelection blues we see a bit of a dip in the equity market. follow me on twitter. i'm up early these days. ♪ . .

rex the ipo frenzy continues. lloyds plans a share sale of its tsb unit. >> and ibm is caught in the crossfire. china pushes them to remove service as a dispute with the u.s. over spying escalates. >> and a bloomberg exclusive. former georgian president says the ukraine vote is a big blow to putin. "the pulse welcome to," live from bloomberg's european