android addict. it we would app developers -- it wooed developers around the world. more on theck with developers conference in a bit. a flurry of m&a happening. we are looking at that a little bit later. looking up the correlation between how well it world cup team does, german beer outflows. water all of the indicators so you know which beer stocks to buy. >> the european equity markets just opening up. let's check in with how they are performing. >> equity markets are rising,

the first time in four days. europe pulling itself back up. you have gold prices falling this morning. ore aware rising rush iron -- iron ore rising. and it comes to valuations, one of the most interesting things i read some of the s&p 500 offers you a view of around 5.6%. not a dissimilar story when you look back into the european context. what equities offer you versus what bonds offer you. meet.ers -- leaders some companies, very much under our focus today. our clays in terms of --

barclays, in terms of the lawsuit leveled against them. this is their private trading exchange. institutions and brokers do business. there is a lawsuit, it is down by two percent. understand the dollar clearing may be up to a year, but it may have to do with those offices involved in the breach of sanctions. for example, geneva. doing atock exchange deal, $2.7 billion, buying the russell index. giving them more scale, it geographic positioning. they will have the rights issue to fund this deal. the stock is up 3.9%. london is up a quarter of one percent.

it has been cleared. dixons came out with their numbers, a billion pounds for online sales. carphone warehouse, the countryside to this -- contra side to this trade. delivering better than expected numbers. those of the stocks you will keep an eye on. through theing paring down on the gdp numbers. looking at much more real-time numbers and date it in the united states of america. dollar index a little bit lower. >> thank you very much.

new york's top securities regulator is suing barclays over alleged fraud. joining us with the details is jesse westbrook. also with us, michael franklin. jessie, let's start with you. let's get us up to speed on what barclays is alleged to have done . >> high-frequency trading is a complex topic, that this is a very simple case of fraud. you think they told their clients that it was a very safe environment where they could trade free of predators in the marketplace. they were behind the other door leading alleged predators to take advantage of their customers. big institutions that trade big blocks of shares were resistant to doing it in public venues. they did not want to alert the

market to big trades coming and that would move the markets and affect the ability to get a good price. the controversy about dark pools, who is trading on dark pools? -- give up silvio business you give up some of the openness of the exchange. companies want these high-frequency traders to operate in their dark pools? the argument if they bring liquidity. >> volume and trading fees. if someone is trading a lot more than someone else, they will pay more fees. that is how you make money. days of markets, there were specialist who matched orders and they pulled reasons.arious

high-frequency trading firms are feeling that void. at what cost? are they really just making markets are using information they get to make money and take advantage of others? >> thank you, jesse. let's bring in our guest, michael franklin is with us. your investment approach could not be less interested in big banks. scrutinyregulator surrounding the banking sector in the united states at the moment. >> one of the problems with the banks, they have some pretty fancy accounting arrangements. you are having to really work in the dark. you can have a bank operating

soundly and something like this will, with barclays. -- something that this will come up, like with barclays. >> we had manus taking us through the attitude of the markets. investors are looking through weakness in data. about the first quarter gdp revision is that if you look at the full year, the markets will get excited the rest of the year will be fast. talk about -- the potential for that is huge at the moment. you have to take that on board when you look at the markets. we are building up to something of the selloff. in the meantime, we attempt to carry on as normal. that is why the technical bottom-up approach is useful.

>> derailment, thank you -- jammin, thank you. -- gentlemen, thank you. the information from the bank of england, later. ♪

>> this is "on the move" streaming live on your phone.

this is the london stock exchange. it is planning an offer, the largest acquisition today. it is up by 2.67%. england's financial policy committee in charge of ensuring stability will deliver its biannual report. it is expected to center on the u.k. housing market. why is the whole world focused on what mark carney will deliver today? it is about trying to do with the potential aftermath. preventing risk for you and me. preventing risk for the institutions that lend money. as we go into this, some would say the froth has come off the

market. that is good news for mark carney. i want to show you the very personification of a market coming off the boil. it is down for the fourth straight month in a row. the lowest reading since august 2013. you are looking at that -- at a market that is changing direction. any mortgages up to 500,000 pounds, we will cap it four times your salary. market review. danny alexander came into our offices in new york. he is number two at the treasury . he said, stop getting so carried away. >> you do see pressures in the housing market. that is one part of a much larger u.k. economy.

house prices are well below where they were back in 2007. by 2018, it will not have reached the levels of back then. >> the real balancing act is how do you quell the prices in london. it is like trying not to throw out the baby with the bathwater. the housing market improves, i spend more money. you do not want to quell that overall things are feeling better and the u.k. economy. what we are doing, house prices up by 11%. things are coming off the boil. things are beginning to turn in terms of the number of mortgages being given out. >> what types of measures might the financial policy committee if it decides to take any

measures on the housing market? -- it willing to be be the simplest. i can have a mortgage around four times my salary. looking at what they did in new zealand, a much more aggressive housing market, they went by the loan to value. they will only lend me up to 800,000 pounds. i have to come up with the other 200,000. or they asked the banks to hold more capital. that is probably something that would be the last line of defense. you issue x number of mortgages in the center of london. you can hold less capital for those prime mortgages. everything will be incremental in terms of what carney and his colleagues do. he is known for going against

the odds. fight of his 10 rate decisions went in a different direction -- five of his 10 rate decisions went in a different direction than what we thought. >> thank you very much. still with us is michael franklin. stocks. you pick taking this theme of what central banks are doing at the moment, you have some thoughts on that. what do you make of the bank of england's dial-in is around the housing market? -- dilemmas around the housing market? we get forward guidance from the bank of england. what you are left with is the markets are trying to second-guess the bank of england

. the bank of england is trying to second-guess the economy. in terms of whether the bank of england should raise interest sector, the property which is not a normal market anyway because the foreign interest. that the bankcept will reach four macro prudential measures and that is now being -- that is now being done. what we would tend to do is monitor the way the markets arc react and to news out there. the housing sector. >> you focus on the ftse 350. are you expecting any movement? the country is desperately

short of housing. any sensible government will direction.t there should be a future for these companies. what the markets decide to do with the share prices, another issue. the construction sector and whoever comes in -- we're coming up to an election now. this is a very sensitive issue. you are buying a number of mining stocks at the moment. nights they have a short term view. at the moment we have been buying vodafone. you can take fundamental view on all of the sectors. if you're right at the end of the year, brilliant. there are a lot of things that could change. >> a lot has changed since 6:00

this morning. more thoughts from michael as we go through the program. >> this could be the biggest acquisition by the london stock exchange to date and it is history. splash $2.7g to billion on russell and his company. the russell 2000, an index of small-cap companies. this is a high-quality u.s. business. really trying to diversify itself. .t has new people coming in they're trying to stand out and add to the arsenal of what they can offer in the u.k..

also in the united states. if you combine, you would get .ome 9 trillion the ftse operates and has about $4 trillion worth of equities you can trade on the london stock exchange. the index business has 5 trillion dollars of assets. this would be an absolute juggernaut. assets and should mark and traded by these companies. about becoming a powerhouse in the index industry. in terms of trading, the london stock exchange would be the key player in the global financial services moment.

$256 billion of assets on the management. going to investigate whether this is really a strategic fit. they will analyze it to determine how it positions and how would fit with the london stock exchange going forward. why they are willing to spend so much money is all about getting the russell 2000 the frank russell operates in the united states. in mays highlighted back 13. many other companies were looking at frank russell as well. looks as though the london stock exchange has run -- has won the day. the owner and runner of the indexes over the united states. >> caroline hyde.

does this type of deal make sense to you? >> it is in their interest to try to expand. i have not gotten into this particular deal in detail, but it stacks up quite well. >> how do you go about sticking -- picking the stocks you have been. ?hat strategy do you adopt you are looking at stocks larger than a billion sterling. you are hoping any information around is well communicated to those stocks. a particular share price will reflect broadly in a financial democracy how people feel about that company. it does not mean that they have got it right, but there are trends in the market.

doubt there are cycles and prices. if we can take advantage of that, we will. that is the way it works. >> michael, thank you for joining us. next, german brewers are working overtime. we look at the staggering numbers behind world cup beer bongs. ♪

>> welcome back. let's have a look at one of the stocks on the move. that is the london stock exchange, trading up by four percent. announcing that it will buy frank russell for 2.7 billion u.s. dollars, planning a right off to partly fund this. write-off to partly fund this. up to speed with some other companies on the move.

he will not rule out -- richard gonzalez says his offer ishe wie "compelling value for shareholders." the company sold more than 17.5 million shares for $24 each. the company -- the stock will begin trading today on the nasdaq. haynes the rights to brands such as wonder brought and will create one of the world's largest under make -- underwear makers. -- we down with one of sit down with one of the mayor of london's most trusted advisers.

you can follow me on twitter. stay with us. ♪

>> welcome back to "on the move." we are 30 minutes into the trading day. quite a picture for the equity markets today. let's dig deeper into these markets. menace cranny is that the touchscreen with three stocks to watch -- manus cranny is that the touchscreen with three stocks to watch today. note.eading a this lawsuit coming from the new york attorney general's office, a systemic pattern of fraud and deceit.

could it be that the attorney general looks at the , couldsecution agreement it be reviewed? if the attorney general goes after it. in terms of the equities and prime services, the area where the dark pool sits. produced $674 million. keep an eye on barclays. anthony jean king's -- anthony jean didn't not having a good -- anthony jenkins not having a good day. the big argument is as the barclays story breaks, what will happen in terms of otc markets versus exchanges?

this company has received a takeover offer and is in talks. one it comes to titanium. the nations crude exports will accelerate next month. violence in the country's north is not affecting the oil-rich south. the exports from iraq will be close to a record high. the search for the malaysian airline jet that disappeared march 8 will resume in a new area of the indian ocean. it was suspended late last month. the new search will be made in his own as large as 60,000 square kilometers. bank of england governor mark carney unveils the financial stability report in a few hours. economists forecast that he will unveil new measures to calm the housing markets.

rising mortgage debt could threaten britain's recovery. report, we aret joined by the chief economic advisor to the mayor of london. and the author of a new book. let's start with the fpc. what are you expecting? thereeople suggesting will be measures to calm the housing market. not quite as -- there will not be any measures. >> it is difficult to say what will be announced today. at some stage, it there will be measures. the governor has made that quite clear. the markets have been focused on what mark carney has been saying on interest rates. the messages rates will stay low. they will stay low for a while. and then they will go up

gradually and they will peak at a low level. when it comes to the housing saidt, mark carney has that is the first line of defense. i do not think interest rates should go up, it even though the economy looks strong. still lots of slack in my mind. >> you have put a lot of emphasis on the need to build more homes in the u.k.. a planor of london has that aims to build 42,000 homes a year. >> the mayor was asking -- anthony -- the mayor was answering questions about this. the economy in london is doing well. u.k. has not built enough homes.

there is a lot being built. in terms of recent decades. is this enough question mark of course not. in the housing market, we need to have more supply. i was listening to the governor when he said he had been given more powers to limit loans of values and purchase prices. regardless of what the economist were saying earlier, the government has made it clear that he will use greater measures. what the committee is focused on is to make the banks -- more capital for the banks. what we are likely to see at the next stage. it a problem for you if we

end up with a situation where the government is boosting the housing market? -- ave the >> left-hand and right-hand not doing the same thing. there is a difference between london and the rest of the economy. supplies,o build more we have not done it for 40 odd years. there is a big legacy affect. in the absence of that, other measures helped boost dance. >> i spoke to an economy recently who said we should start -- stop building on the green belt. greater density. >> let's talk about your book.

which new world order were talking about? hast is aimed at anyone who an interest in the global economy. joggers -- the key near-term risks. we should be very positive about the global network. the trend is up but they will have setbacks along the way. the west fears a shift in the balance of power. there will be a lot more cake around. what are the key drivers and why we should be positive about what lies ahead? nations abilities to settle disagreements around trade unions. times, imber of

thought we had become to have a major crisis. i thought we should join the euro. the fact that people might be criticizing for her being too optimistic is something that does not bother me. question,k to your new trade corridors are important. factor.tion is a big what is happening and why you need to dig a bit deeper. when you look out, easy the land in a different way. -- you see the land in a different way. >> a long-term perspective, thank you very much. chief economic advisor to the

mayor of london. europe's biggest airliner is playing catch-up when it comes to competing in the low-cost arena. we will be back. ♪

>> this is "on the move."

one company we are watching this morning is air france. it is set to review options that may include closing additional bases created just two years ago. the ceo sat down with pimm fox last night. >> we have a strategy. we are operating this season 50 aircrafts. we are based in holland and france and we intend to develop a low-cost carrier everywhere in europe. -- you workable to to earn miles. provide all of our services.

you are not left alone in the middle of the desert. you can ring the telephone, we will reroute and send a plane, if needed. >> what about the cost of the pilots? are they operating under a different contract system? >> completely different. we think we are in the market. >> what has been the challenge with the unions? >> the challenge has been to convince them that we are in a crisis mode. , we were targeting. the point is that all of the unions have signed agreements with us.

they were fighting hard to put the company back on track. frameworkent that the to reach our efficiency and our target. it is a dramatic achievement. let's get back to one of our top stories. the new york attorney general has begun a lawsuit against barclays. where should we start? the share price is reacting. >> down almost five percent. i think sandy puts this into context.

you encouraged everyone to come and do you their business in dark suits. it is like a stock exchange except you do not have to hold out a flat and say i want to buy or i want to sell. a bank like barclays or any and buy and sell others away from the exchange. >> they can put their client orders in their as well. there as well. we will protect you from the high-frequency traders. protect from that. we do not have that kind of thing. over 50% of someone.

about what was said as opposed to what they were doing. why is the stock price acting so aggressively this morning. in the united states, the attorney general, he could review. remember libor? the new york attorney general you could push for a review of .he banking license why do we care about a dark pool? .quity in prime services,

>> the second-biggest in the u.s. as well. role.s a big almost seems as if they pursued it. ?> barclays has said >> they are taking it very seriously and doing an internal investigation. barclays also released a statement this morning. topgrity of the market is a priority. >> "the pulse" is coming up at the top of the hour. we're going to continue diving deep into these dark pools because it looks like

barclays is once again in some very hot water. the new york attorney general it sank the british bank lied to customers. institutional investors were not having their trades exposed. in reality, they were. this point the most since may 6. we'll be going big on the u.k. housing market. mark carney will be giving his new recommendations for how to cool britain's housing market. can anything be done? buyers are coming in with cash. we will see what these tools could actually do. we will be doing a little bit of luxury.

we will have the ceo of a stress -- swiss watchmaker. we will get his thoughts on what he believes the market in russia has only begun heating up. here are some companies on the move this morning. dixon says it is in robust financial health. the company cited in uplift in tv sales driven by the world cup. yesterday, the european commission. most expensive sedan. it is priced about $1 million. it will go on sale next year. the london stock exchange is proposing to by frank russell for $2.5 billion.

frank russell is the u.s. global investors services company. it would be the largest acquisition to date. what is the goal of german as many world cup winners will tell you why. ♪

>> they need the national team to go deep into the tournament so that the are gardens like this one stay open late and everyone drinks when germany scores. countrywide sales have been declining since 1976. the average german drink north of 150 liters. a pint of peru 300 days a year -- a pint of peru 300 days a year. 212 nights of light bruising.

boozing. they have incentive to root for the home team. >> in germany does well, we have breweries who have sold one million liters more than on a normal day. waterworks has its own technical analysis. halftime flushes. when germany plays ghana, water use triples during the break. the game was a draw. >> almost too much to think about. for more on that incredibly serious report, let's bring in hans nichols. they are fighting the trend. the trend was not their friend.

>> the trends are down. paris is ary for one million more sales -- for one brewery is a million more sales, and you could see it one percent increase. here is my inappropriate unqualified stock tip of the day. if brazil is out early in the imbev.ment, short end o take a look at the expectation for brazil. related,% of that is predicated on a deep run for brazil into the tournament. trade.do not act on that just enjoy the game. root for the victor tonight. >> let's just recap your

production. you are an american working in germany on a day that germany is going to play the u.s. and the world cup. looks i pretend to be switzerland -- >> i pretend to be switzerland. i am going for the 2-2 prediction. take a look to see if the berlin waterworks has the chart up of more flushes after halftime. if you see water usage spike about that is a good sign for the beer business. >> all of the details you never needed to know. we can rely on you for that kind of extra insight. let's take a look at a few of the stocks we are watching. the stock is up 4.6%. barclays trading down 4.7%. the company at the center of

investigations by regulators. stay with bloomberg television. " is next. ♪

>> barclays shares slide as the new york attorney general sues the institution for lying to solve its key customers. --he london stock exchange institute for lying to some of its key customers. house call, the bank of england get set to unveil tools to tackle surging property prices to protect britain's recovery. we will bring you his speech live.