is more vocal in her support. caroline, over to you. >> it was a by your and now it could be a seller. to do with its telecom unit. and the price tax. at 4.5s pricing it billion euros. they want to double that. more on the telecom m&a. and a billionaire who is selling a stake to get this triple what he put in. >> we are looking at the rate of return. what does a decent rate of return on your trade right now? low.ility is a we are talking about the european markets. where does it take us and what does it mean? on volatility remain in this low. let's get a heads up. caroline hyde is talking about the bouygues story.

what is happening with these markets? for breath, the key distinction. we are looking the bond market. generally, we are starting to see opposite of what we saw yesterday. yesterday was a record lows in italy and spain. today, itching very slightly higher. not by much. spanish ten-year lower than the united states. bond market.of the the big movers yesterday, again, currency market. the euro is just basically flat this morning. 0.3%. we saw it come down we get data coming out of europe today, guys. manufacturing production. basically in line with estimates.

month over month if you looking at industrial growth. manufacturing, still growth. up three percent month over month. later, the we get the united kingdom's as well. keep an eye on that. the future growth. once we get a feel of the second quarter of the year when it comes to gdp. flatter. france, incredibly flat. similar to italy. calm after the ecb storm of last week. that fueledthe data markets higher yesterday. what is it? a six-year high. s&p 500 in the united states at a record high. 65 chilean dollars. that is how much a global equity is worth. $65 trillion. a couple of the stocks that will be on the move. we are talking about the likes of m&a.

in the communication industry. telecom, bouygues up by 4.5%. what will be doing. we know that iliad, the for the biggest player, the new kid on the block that started a bidding war might be looking to buy the telecom unit of bouygues. a big disparity of what they want to pay. bouygues wants up to 8 billion and iliad says five point 5 billion. -- $5 billion. one of the biggest players in china, amazing amount they have over there. 118 million subscribers they have over there. -endntract for a very high sim card. it's about paying for your coffee and metro with your phone. china is getting into that.

bank of ireland is down. why? cashing in. he is looking to offload close to 500 million euros worth of shares of bank of ireland for sale. >> thank you very much. caroline hyde. the market action. the perspective on what we need to do, francesca. good morning to you. good to see you. equities are up. the european curb nailed. look at the rates. what is catching your eye right now? >> i think inflation. inflation a europe is falling. >> we have inflation? >> for now. the expectations this year in particular, and there are some signs it is starting to form a bottom and go up again on the back of the ecb action.

it will be important because there's a big scare in markets around the notion that ecb was behind the curve and will let europe jeopardize. we hear investors using that word. it was starting to see the opposite happening and people taking a more confident -- confidence in europe story, that can set the tone for markets in particular. >> we are miss priced right now. >> issue put some premium on bonds. thatu take a german bond is selling at 100 basis points, the average european inflation right now on the 10 year tenure that is very low. even the lower than comparable treasury yields on a macro valuation basis. spread, the is the

spread between the ecb and the fed. trade going to continue despite the fact that what you are saying it will be a since the ecb is not behind the curve but nonetheless draghi said he is not done yet. despite data disappoint all the late, is probably still on rails when it comes to the taper. it changed a little. nevertheless, your sense of the trade is an active one. >> if you take where we are now, since october, the u.s. has moved a tiny bit. europe has continued to gallop along. we have interest rate and ecb has basically said up to september 16, will not have rate hikes. that is locking in at a big spread we have right now between europe and the u.s. maturity beyond five years, that spread is very wide and

marketable stay wide for a long keynote of time. that is opportunity. that should compress. dost of all, the fed will earlier than the market -- and flatten in the u.s. traction, ecb takes that should stephen the european curve. -- steepen the european curve. >> you the five years out? >> i think so. >> stay with us. here is what else is coming up on "on the move." made in italy. made in asia. chooses -- maria renzi chooses china and kazakhstan. world.h-stakes security the challenges of one of the

most dangerous nations safe. stay with us. we have all of this to talk about. talk about the markets with francesco. we will see you in a moment. ♪

>> good morning. i am guy johnson. this is "on the move." let's talk about a stock on the move. bank of ireland. a big stake in the business and

a lot of people thought he was crazy. if you look at a rate of return on the trade, 300%. not a bad bit of business. it is down but climbing all. you look at where the irish debt is right now. well above the united states. certainly on the path of recovery. maybe the pricing disaster has been and he is moving on. let's move on as well. -- mario -- francesco renzi is in asia. it is one of the major international trips since becoming the prime minister. talk about the significance of it. it is pretty significant. renzi came about a few months ago but he was not elected. he came through palm entry maneuvering.

-- parliamentary maneuvering. he had a big electoral win and his party did in recent elections. this,ing a trip like raising his profile is probably a good thing for him right now. -- i get about the china angle. vietnam and kazakhstan, anything in particular about those countries that stand out for you? >> know a tight prime minister has visited vietnam since 1970 tie-in prime minister has visited vietnam's is 1973. prime minister has visited vietnam since 1973. he has pledged to boost trade to 5 billion. there are definitely opportunities for apparel

companies as well. italian has a big investment. he'll be visiting kazakhstan to promote energy deals. >> you mention a couple of names and ceos. talk about what they need to get out of it as well. know, the italian economy, the european debt crisis may be restating that italy is still lacking. we will get final gdp numbers. thee was contraction in first quarter. the forecast for a next action. one of the reasons is they need investment. they are becoming more acumen in china. even the power company. their ceo is with renzi. signing energy deals.

deal forrgy is a big a the chinese. renzi as an in shanghai for the expo. he'll probably use good on that. the hughes corruption scandal around the in mole on. >> -- they hughes corruption scandal -- huge corruption scandal in milan. -- >> thank you. francesco, what did drive he do renzi? >> all european countries and first peltro's. those are essentially the same in a couple of years ago, so broad collateral banks can go for another 2 years

on a fixed rate which is not the case before. i had no penalty if in two-year time they had not grown in their balance sheet. just setting the stage for trading. it helps the deleveraging process and the banking sector take place more smoothly. this has to be in conjunction also comingwhich is to a conclusion around the end of this year when it kicks in. a sort of combined if that's the side the ecb is trying to clean up and promoting the cleanup and greater transparency. at the same time, it is offering banks of the opportunity to fund a big part of their balance sheet for another two years. >> capital seems to be a problem there. they are not short of liquidity. that is not the problem in europe. it's convincing the banks that

they should land to riskier time -- lend to riskier clients. it could work against them. how do we fix that problem? >> i think is a global problem. it does not only pertain to europe. their's expectation of income has dropped because of the world we live in. and banks see this. they do not want to put their money to work against propositions. maybe fundable at attractive terms, but are risky. dimension, ae passage of time and this crowding in off markets and low volatility. it could improve the economics of the plays we are talking about. take fiscalobably,

policy or way of reducing that. we are seeing this happening gradually in places where data drops. discussing lowering interest payments for students and the u.s. basicallyways of transforming the fed and making it easier to sustain. >> how far along are we in the process? >> it is hard to tell. it depends of sectors of the economy you are looking at. the larger caps have very attractive -- in europe.s -- an economy that is inefficent. >> we need to clear out the problems. gets him the bad loans sorted out. and the banks' balance sheets back edit level.

how long is it going to take? >> related to this. where should this take us? you probably would not have the same set that you had before the crisis coming out of the crisis. that is another challenge. we are talking about a process of destruction. not all companies will remain the same. chris is it a bad -- >> is it a bad thing? >> not necessarily as a it has to be managed. it's probably the easiest thing to fix. -- and not necessarily. -- it has to be managed. it will not be worth much. if the businesses are not geared out. obstacles.ity has language is a problem. i think that every cycle we discover we can do the same things with less people or need different skill sets.

ofre is a transformation labor skills that need to be also supported. -- what is it doing , the process but extending, is ist did the ecb don't ask -- what the ecb is doing is extending the process? into trying to pour money the system. by the way we doing it, are we hi, is desperately looking for a way to try to get a critical sector function again. trying to get money and mechanisms to work. at the grassroots level to generate jobs and deal with the unemployment problem. how -- what he announced last week has got a huge duration attached to it. i am wondering if there is a way to make it work more quickly and

more efficiently. >> i think, look, they are doing their part of the job. there are parts which is really finance. that would not be able to reengineer jobs or retrain workers that have been displaced. it is a simple fact. what they are doing is a three prong strategy. banksre going toward the making sure the balance sheets are clean and homogeneous across the area. nowhere to hide for people. that is the hqr. the second thing is lacking in interest rates for long periods of time. that should allow people to refinance at lower levels and so make their debt burden easier. trying toird thing is reflate assets and get in the cycle going that way. >> assets. they are doing that pretty

effectively. >> they are. >> in the process. where we were before, moving any more positive direction. that is the role of central banks. we have seen even in the u.s. with all the qe that has been done there, the wider fiscal ,alance has been able to fund you still have a recovery with long-term unemployment, etc. that is the challenge. >> larry summers he's talking about if that thank you. of goldman sachs. we would take a break. back in a couple of minutes. ♪

>> good morning. you are watching "on the move." the gap between -- we're talking about the french telecom industry. the gap between the telecom and iliad. let's find out more and why it is so important. caroline hyde joins us. talk to me about why two different companies have different things. >> iliad, the new kid on the block, they really drove a price war in france at the moment that it is thinking it might be doubling telecom.

we did not get the hands on it so far. dealings, we were thinking we can buy the whole. billion euros to 5.5 billion euros. bouygues thinks it should be worth way more. it is a fantastical amount. conglomerate, it is worth 11.5 billion. sales come from telecom. why should it be worth double that? almost 5 billion euros? chunk of that.

the and telecom, a mixing wonder what is happening next. there are rumors going around that maybe the family will want to take the this is private. the fact that some of it does not add up among the valuation. , quitenteresting significant changes. >> the game has changed. if you look at discussions with orange. they have other areas that will isht be seeing if bouygues looking at team you go with the number one player in france. not the number four. it would have regulatory concerns. bouygues is looking to hook up with sfr. they need to invest. and gettingok at 4g better networks and that cost a lot. the most pick are up in m&a this year.

>> thank you. caroline hyde. iran and turkey get a deal on gas. see you in a moment. ♪

>> good morning. welcome back. you are watching "on the move." i am guy johnson. let's take a look at the markets. a down touch. not everybody excited about a drop of 0.2%. looking at elevated levels and elevated valuations. bank of ireland and down. what stocks are moving. caroline hyde will stop over to you. >> thank you. those two stocks without what is driving the market.

1.3%.es down by orange is down. -- in them cup telecom sector is trading lower. .liad looking to buy bouygues it isnk -- it thinks worth 5 billion euros. is 8ouygues thinks it billion euros. the deal may not get done. about communications. paying for your coffee and a your and tube ride using metro. china is interested. one of the his players. 180 million subscribers. might be rolling out services. how they are doing that is using chips. their communication chips. very high-end stems -- sims.

and bank of ireland and down nearly 5%. will has managed to triple the value almost up his holding in the bank of ireland. they're looking to sell 1.8 billion shares. almost three times what he paid less than three years ago. of returnse the kind you are looking for. thank you very much. caroline hyde. the top headlines. china's inflation accelerated at the fastest pace in four months. a beat economist estimates. it still below the target of 3.5% and we may see more easing. if you look at prices, they are significantly lower. asia, italian prime minister renzi is there to promote

business relations and investment. he has visited factories in vietnam a yields china right now , he will meet the financial community. it is international trip since taking over from the former prime minister. he took over in february. ukraine has peace talks and said it has yielded progress. the de-escalation of the eastern region. ukraine's army is fighting pro-russian separatists and blame russia's president putin of force during the unrest. shares in bank of ireland. the billionaire investor is selling his stake. investment.e his he has done so in three years. dara, a great trade. why is he getting out of its? >> i figured to step back.

to understand the story and i have talked with him a while ago. economy was the worst. he got a call saying we are buying a stake in a bank of ireland. his logic is if he went in it will lead to other international investors following. the shares have tripled and he has made half a billion euros. he called it a terrific -- terrific investment. >> what about the bank of ireland? this highlights is the challenges facing the bank of ireland. not that the bank is any trouble but it refocuses where the economy is. there is a perception it is a great shape and they returned. if you look at the numbers, it is not that great. growth is pretty anemic. unemployment is 11%.

ofd to figure out where bank ireland can get a loan growth. a pretty picture for the bank of ireland and its investors at this point. they have to refocus. of the stress test comment off, are we in a position where i wish banks need more capital? will there be a position later on for the stress test to generate a need for more capital? if you look back at history, the stress test has a poor track record of highlighting problems within the irish bank. >> well, going back to history as little bit. it was the bank that tipped them into need a bailout. 64 billion euros in total. 2008, the biggest in all of western europe.

where we are now, the property market has stabilized. prices at about 15%. the backdrop of the policymakers, they are quite measured in their language. they said the irish bank will probably not need more capital. need more test to capital. at this point, the irish bank will not need more capital. hopefully, there will not have to find another wilbur ross. >> great to see you. ok. let's move on. the forces opposing jean-claude joining candidacy are hands. they have bought time. though prime minister of sweden said it would not be a speedy selection. hans nichols joins us. you have said over the past couple of the, time is not the hands of junker. it is not a good news?

tounless you really want focus on what angela merkel said, it is the first time that we since the process started to our three weeks ago i heard a firm, absolute statement from angela merkel that jean-claude junker is her candidate. she said sure use every opportunity to lobby on his behalf. the question is, does merkel's support if it is strong, devin cut against everything going against junker? you have the british mounted a campaign, a corrugated campaign. aboute with nick clegg how he is making calls to eu leaders he knows trying to block this appointment of junker. you have the swedish who are clearly opposed. it is getting to be hard to see over the top of his only ally in this. it is angela merkel and the idea that as the head of the center

right party, his party -- he should be in scotland and the position. the argument from cameron is these are rules not agreed to by all the treaty members. thank you very much. hans nichols in a berlin. the british labour party, the opposition, has came out against junker. we have nick clegg. a coalition of the u.k. and he is from the liberal democrats. he told my colleague it will be a mistake for david cameron to pull britain out of the eu even if junker is appointed. >> europe is not perfect. of course not. nobody is her feet. it needs improvement. -- nobody is perfect. when he secured jobs and prosperity. -- we need to secure jobs and prosperity.

>> bringing you more of the interview. , that will be a little later on. let's get out to the gulf. they may be neighbors but no iranian president has went to turkey. and erdogan met. elliott gotkine has a more. that's a lot to catch up on i guess. spoken.have not the first time an iranian president has set foot inside of turkey since 1996. i suppose the big issue is you players big regional would often diverted abuse and they often step on each other's toes. you have the already that backing the regime of us sought a you have turkey on the other side trying to unseat him. yesterday, all that seem to be

forgotten. it was all smiles and handshakes met and held a joint press conference with mr. rouhani called the meeting a turning point in the relationship adding we have decided to improve relations gas, oil, and electricity even though there are some snacks. -- snags. it is the prize that turkey pays for a radiant gas. they plan to file a complaint over the price. they want to buy more gas and want cheaper gas. they want a trading relationship. their town by doubling trade 2 next year if the sanctions against iran are lifted. it is something described as unfair. >> yeah. goingo me about how it is to impact relations with others? clearly, a conversation with iran has implications with

london or paris or new york. -- i know turkey is next door to iran. does not go toey sustain just in plays, nobody in the west is going to quiver too much. trying to sell gas or thinking of selling gas to turkey. it is on the brink of restoring diplomatic relations with turkey which were suspended in the wake of the 2010 incident when israeli commanders raided a turkish ship. countries, turkey hopefully get some more gas if and when the time comes. for iran, it comes a little bit more from isolation. something it is very keen to do.

>> elliott, we believe it it there. coming up, let the games begin. the billion game. the expo kicks off in l.a. that is next. ♪

>> 45 minutes past the hour. welcome back. this is "on the move."

let the games begin. the video games that is. they are all in los angeles for the e3 gatherings that the industry's biggest gathering. indie games. good morning. very nice to see you. around inxcitement these consoles. we had sony and xbox and all kinds of things going on. a year on, we are focusing back on the games. the drivers of the consoles. the sales they are generating, where are we and the lifecycle? you have a lot to games and buzz around them. what is the sense? >> we are at the beginning. the new consoles were launched last year. the previous year we had wii's. the consoles have been launched

and now the manufacturers are trying to commission as much of games. they want to show all good games with good graphics on their devices. now, is the time when it will take place. we are seeing good games at being showcased on the new devices. one thing we are likely to see and showcasing -- [indiscernible] we have companies that are doing that. they are not the only ones. we'll see u.k. company showcasing good content on these devices. >> why the u.k. gaming, the game generation, take a hit? it is coming back now. what is it the government has done right? what has the industry done wrong and is now doing right? time, a long period of our key competitors in america and canada offered a very

forrous tax breaks production of some the consequence was it was much cheaper to develop games and north america so we lost 10% in investment. and my organization, my campaign for seven years, the labor and coalition, is about production. had to convince the european commission as a break was legal. we had to have it in place. industry to be on a more level playing field. more jobs being created. terms ofck on track in the industry. >> what will, next? >> will see more support. in terms of games, we will see more good quality games on these new device from playstation 4 and xbox one. it's what allowed to be shown off. that is one thing.

the second, we will continue to see many games being developed for mobile devices. is taking the growth place in the years. >> what does that mean for british? we have seen candy crushing do well. other games on tablets are getting more sophisticated. , it allows the device to be more -- where are we and what is next? imply,our question console type games on mobile devices. we have companies in the u.k. for arms, who really pushed games on handsets. that is taking place. quality gaming experience. also in terms of our mobile.

>> when is the market going to be on tablets in the quality you expect to play a game like this? how far a way is that from us? in which companies will take advantage of a best? best,terms of taking investors and good quality products. successful. be many will be in the u.k. and in europe. individuals, a great pedigree. >> new games are games like "halo?" >> you will see both. it pays for them to put out franchises. they are proven success stores was up a lot of indie game companies many in the u.k. are making new types of games. -- they are proven success stories. companiesf indie game

, many in the u.k. are making new types of games. kris we will leave it there. brazil is one of the most dangerous countries on earth. be tighterll need to than ever. we'll look at the challenge of keeping fans save. that is next. ♪

>> welcome back. let's turn our folks to the world cup. resilience known as one of the most dangerous countries in --

brazil is known as one the most dangerous countries in the world. for some it is big business. ♪ >> here in brazil, there is no value in human life. they will rob you. if you resist in the least, you will be gunned down. with no remorse, they will do it. i am president of -- this my security team. we know we will have demonstrations. we know we are going to have stoppages or strikes or so on. it is how violent they are. they are unpredictable. this could be a security nightmare to some of us.

but to others, like me, it is a challenge. ♪ the misconception that these guys are security guards in suits and ties. there is much more training going into it. these folks out here working are all tough professionals in their field and they work to make sure they understand how the criminal element is and how they operate. so we can get better at protecting our people. we are looking for anything that may be out of the normal that we need to be aware of. see that van is pulling up next to my proctee. they might be curious when they see this kind of configuration.

they have dark tints. they try to cut us off. the key is to at least be moving at this speed. constantly in motion. it is very common to have a blockade thrown in front of you to get you to stop. some type of a roadblock or assailants come out all of a sudden. turn the wheel. and we get out of the potential situation. ♪ to avoid being stopped or being locked in, we will take a helicopter out for our protectees and take them to the next site. if you fail in this arena, it could cost you your life. we are not only protecting our

clients and their families and their company assets, it could cost us our lives as well. you've got to really want to see football after seeing that. the pulse is next. football continues. in the flash. the former chelsea player. the former chelsea manager. we will be getting all of his thoughts on the world cup. will england win? likely.hinks it is he thinks italy has a chance. >> because he is an italian. >> we had a guest essay uruguay would win. how corrupt it is. it will be good. a football theme. >> we will talk about tech. >> you said it. a great a gas.

guest.-- a great -- an author. why he thinks social media is a hoax. >> a big story. we will be back in a couple of moments. ♪ . .

>> the leaders upset to speak this hour. >> made in italy, made for asia. prime minister renzi looks east for investment. we are live in hong kong. >> and cashing out. wilbur ross shares his remaining -- sells his remaining stake in the bank of ireland. shares sliding on the news.