they are not firing from the air. he wouldn't call it a cease-fire. >> satellite images it says roof russia has been shelling a unit from its side of the eu gathering tomorrow. the german chancellor saying eu must act this week. we aren't going to look at russian companies and how this will affect them. >> i am looking at potentially another ipo and another share sale brewing and the united kingdom. if you need some painkillers after the killing with nero fan.

still could look at any potential purchases if a buyer did come in, but capital markets are the way they feel. remember, they have nearly one .illion pounds left >> thank you very much indeed. we have got a packed week ahead. markets data is going to be front and center. geopolitics another big story. there is a whole load of corporate news we need to digest as well. what is it going to mean for trade? >> a big week for u.s. data. european futures pointing higher after a day of losses on friday. we closed for a second week again. this is your open for monday morning. gains on the periphery. the tax pushing higher by 2/10

of one percent. given the geopolitical risk and the levels we have come to be at , you are looking at record highs. you need some strong earnings. 56% of stocks companies reported so far have beaten. ryanair has lifted their outlook to 650 million euros. that is up from previously. markets on the move higher. a big week for u.s. data. tenure, 2.5%. that is more than double what the tenure will give you. that is the biggest rhenium since 1999. this is about real yields. when you factor the real yields

thing look very different. at 0.5% inflation in the euro zone and then look at inflation in the u.s. and have a look. what the u.s. gives you is a different story. if you look at euro-dollar, euro-dollar near highs but near lows for the year. cpi out her stay. aty expect another earning 0.5%. if the five-month high on the dollar index. you might finally be getting that dollar strength you are looking for. wednesday's fed decision and friday are the big ones. >> lots to think about. lots to ruminate on. that is the market open. what are the things we need to think about? what should we be cautious about

? james joins us now. looking at a lot of data coming out this week. a lot of geopolitical risks. russian sanctions look like they could come through. flex i see a rolling over the digest we should be much more cautious. signs. see no real >> everyone has been piling into europe. if you look at the flow data, money has been pouring into europe. that's what i am observing our valuations. i think there are some that are worth looking at. companiese value in like deutsche bank because the expectations are very low.

i see a lot of durable businesses very expensive. i am offering valuations with plenty of risks associated. in ave we priced significant slowdown? >> i believe we have. markets got ahead of themselves. i believe they are quite bullish. 56% has been talking about have eaten results. those results are down over the last quarter. the revenue numbers are disappointing. revenueess strong numbers. they have not been investing adequately in new capital. long-term growth prospects in the corporate sector and the u.s. economy likely to be much less grand than many analysts are currently sick testing.

should i be stepping back from the equity positions i put on? >> i think you should we neutrally or modestly overweight. i would be wary of retreating to the bond market. i would also look at some markets people have been neglecting. i could see reasonable value i would be japan. looking at toyota. worldare areas of the people love to hate. i see some value among companies like samsung, companies really able to cope with difficult environments. evaluation is relatively benign. >> are you having to work harder to find opportunities?

>> infinitely harder. now you have to work much harder to find real values. in aggregate are all asset classes looking overvalued right now? there may be a few gems left. >> i think valuations are rich. we have to see either a material pickup in growth. we also drive down high levels in most economies. growth is what we need. it is not what we are getting. >> we are going to come back to you in a few minutes time. what else have we got coming up? ryanair profits soared, giving a boost of confidence. last year incredibly tough. still the visibility is incredibly low. a nine-month strategic review

comes to a close. the multimillion dollar man we sat with. he tells us what makes a masterpiece. to tell you. stay with us. ♪

>> this is the airline business. you can't predict with certainty. you must a very cautious. cfo.at was the ryanair

let us take a look at the stocks. they have taken remedial action that is now having an impact on some of the other airlines around europe at the moment. still sees the backend of the year with little visibility. get to another corporate story we are watching. began inegic review october. an announcement the company will spin off the pharmaceutical unit. the company reported earnings pretty much in line with estimates. well be because certain parts of the business are growing better than expected. it might be because of another ipo. let's look at the numbers for

the maker of neuroscience -- neurofen. sales are down. when you bring back the sales into your home currency they are going to be down. sales down six percent. percent.wn four generally this is reassuring. the health this this was particularly strong. that was a particularly strong area of the business. cleaning products you see them there. generally this is a reassuring area. what stood out for me is the fact that russia, the middle africa, theyaran

have currency concerns. they did rather well. growth.cent that is stand out. particular on the supply side as opposed to demand. the key take away is about that initial share sale being lined up. this of course is very much to helpt on a drug dependency on opiates, on the likes of pharmaceuticals. on the likes of heroine. this is an area sadly growing. more people are becoming addicted to opiates. this is the market leader.

st of the share when it comes to winning people from these addictive drugs. sales have come down. they want to sell the pharmaceuticals off. they could not find a buyer for the right price. ,hey are going to the market considering shares continue to rise. >> thank you. let's go to the chief invest in officer. management is desperate to find ways of keeping the show on the road. >> there are a lot of arguments that say that is the right way to go. it is buybacks. it's anyway to get the revenue moving. they need to find a way of .onight going

are you concerned? >> what i am not seeing is long-term strategic plans to drive profits higher. this magic it created in the world of finance whereby simply puffing the earnings is very dangerous and potentially corrosive. >> does it make sense? way.sing value is a that is a good thing management is doing. >> absolutely. management recognizes they have real limitations in driving a business that is very diverse. ses that have a range of activities very rarely

generate more than the sum of the parts. >> let's talk about the macro pitch of the economic story. believe they are going to hike rates next year. you talked early on about returning the cycle for certain parts of the economy. does that concern you may be it.ain ones won't do you observe? a big pickup in consumer spending, yet no move in wages. what this must mean is people are drawing down capital. the data people are bringing money into housing and not taking it back out again. what is missing? what i would observe our two drivers. one is people bringing money

into the u.k., which generates money. the other big issue, compensation from the bank. there would be a significant swing from what the bank typically takes from people. it is as much as 20 billion pounds. unsustainabletely unless we get a pickup to drive wages higher we will not get this pickup. >> it would be a mistake to raise rates? >> i think it would be a mistake . soars.ng up, profit ryanair boost the confidence. we are looking at a return to growth. the cfo, we will hear from him next.

>> you are watching on the move. let's bring you up-to-date with some of the companies. set to sell the medical unit. the companies are still negotiating a deal. the chief executive of glaxosmithkline reportedly open to a possible spinoff of

theumer health care unit. drug company has no such plans in the near term. a strong case still exist to keep them attached to the broader company. the german automotive supplier is said to be working with citigroup on an initial public offering later this year. animal sales of over 5 billion euros could make it one of the largest ipos in germany this year. one stock we continue to watch this morning is ryanair. the carrier boosted its profit. the chief officer howard miller to bloomberg a little earlier. >> a strong summer with a strong q1, but we don't have a huge amount of bookings in place. it's difficult to predict.

difficult timea last year. of capacity as we increase our schedules. >> are you being conservative? >> that is our style. >> it's probably a little below their range. last year we had a difficult time. this is the airline business. you cannot read it with certainty, so we must be cautious. >> how worried must investors be after easy jet was hit quite hard? the capacity is expanding. we are unable to drive rices higher. we have to potentially lower them. do we feel we would be able to navigate? >> we have it radically lower. headyou have that kind of

room and leading-edge it's certainly insee, the near future. >> presumably that is going to change. they are the friendliest airline. are very friendly. >> are you really aiming to be the friendliest? >> we had somewhat lost our way. we became rules obsessed. . i think it'sot >> they appropriate. view from ryanair. they were talking to us this morning. let's carry on. around,mbers this time but it's the outlook we are going to be watching carefully. zero visibility. >> it was interesting this morning.

they raised the guidance. it still is under what analysts are expecting. ryanair is notorious for being very cautious. they warned against exuberance. , thee flipside they said second half we are going to be adding capacity. routes theyout 200 are going to fly more than one site on. a little overto 100 last year. they have big expectations and think they will do well, but the second half is a question. >> it's a pretty decent number. are they reinventing the business model a little bit? you talk about being friendly. after the business passenger. they are flying to more traditional destinations. as we go through this transition

how much volatility are we going to see? >> it turns out they are going to have eight members of their executive team at a press briefing later this morning. they suggest they want everyone to realize they have got this thatdeep pool of people know ryanair very well. even if there is change for the , they would have the deputy ceo also leaving, but to cemex consistency.that >> the history of ryanair is the ultra low-cost model. she has taken the view you want to have assigned seating. you want flexibility. you want all the things you would normally expect that at a lower price. destinations he has never heard

of. attitude thatd of has come pervasive that has made life difficult. they are trying to change that. they have a lot to think about. as they try to generate these kinds of numbers, how hard is that going to be? >> people are looking questionably at whether this is going to work out. ofhink ryanair is conscious how successful this is going to be. they made orange cool. who thought that was possible? i think ryanair is very conscious. there was a lot of resistance from the analyst community. do itk they are trying to

really quickly. the question is whether or not that is going to translate to the customer. will leave it there. we will take a break and see you in a couple minutes. ♪

>> good morning. ."u are watching "on the move how are things shaping up? cautiously up. the stoxx 600 is up that much. a lot of things coming up towards the backend of this week. sanctions for russia, u.s. data, we are in the thick of the earnings season. three companies that you need to know about. >> the stoxx 600 is up that much. ryanair, that much.

they delivered numbers this morning. sheer.lion euros for the -- for this year. ryanair was one of the biggest gainers on the stoxx 600. the other airlines following suit as well. easyjet up. aberdeen asset management is lower because it is about assets under management. u.n. is that -- why is the stock lower? remainpany says they confident they can drive profit and build revenue. they are down over four percent this morning.

nissan is out with numbers. it is expected to be the best in this quarter for the japanese automakers. the estimate was for 84. they've match that one solidly. the story is not changing for forward guidance. aheadline looks slightly of where we would expect it to be, 2.4 trillion. that is the top line. net income is the line we are flashing heavily. bestis expected to be the of the japanese automakers this time round. another company on the move for you.

tim.com says his political party they have vowed to reject the national party from office. any party with five percent of the vote is guaranteed. the united states has reached evidence it will prove the russian military has been firing artillery across the border into ukraine. it reportedly shows rebels using heavy artillery. saysutch prime minister heavy fighting has prevented investigators from reaching the site of the downed malaysian air flight. the united nations security council has called for an immediate and unconditional cease-fire in gaza. more than 1000 palestinians and 45 israelis have been killed.

israel's ambassador spoke earlier at the emergency meeting. >> hundreds of millions of dollars donated by our government to build these tunnels. your tax dollars are not being used towards education, civil services, or development. they are being used to develop a terrorist stronghold. >> let's get the latest on where we stand. elliott gotkine is in tel aviv. the diplomacy, what is happening, any impact? we cannot really say for sure but we do have what the army spokesman described to me as a

low. we are not striking with aircraft were carrying out ground maneuvers beyond the search for tunnels, but he said he would not call it a cease-fire. israel retaliated for that specific fire. there are reports there is some fighting going on in the northern gaza strip as well. militants have been using tunnels to get into israel to carry out attacks. >> we still want to make sure the tunnels are not operational and not a threat. that is the essential doctrine we are working with now. looks very much so. these tunnels were the main reason why prime minister net yahoo! ordered -- netanyahu

ordered the ground invasion. about -- they allow you to stand up right and walked down carrying a weapon. the entrance was found underneath a greenhouse on the southern tip of the gaza strip. the israelis knew the tunnels existed. themctual network did take somewhat by surprised. hamas $30ave cost million and used 600,000 tons of cement another material. this is further evidence why they have had to restrict the imports of material needed for building because they fear it

would fall into the hands of the militants and be used to build tunnels. hamas says israel's claim of discovering the tunnels are a fabrication. israel is remaining in gaza to destroy the tunnels. it will not carry any further maneuvers beyond those related to the search and discovery and destruction of these tunnels. >> thank you very much. let's get to another top story. u.s. satellite photos are showing their russia is showing across the border into ukraine. ryan chilcote is here. resist any -- they will defend any legal claim which is

made against russia. once upon a time, it was russia's largest oil company. it was controlled by russia's richest man. guilty ined and found a couple of trials of money .aundering he moved to switzerland. ofwas tried and found guilty tax evasion, money laundering. the company was found guilty of tax evasion. through taxupted claims to the tune of $22 billion. as a result, there was an auction and it was sold to a company that then sold it.

if you listen to the people that yukos, thatose -- was nothing more than the state taking it off their hands through trumped up charges. that --t of prison and and the actual goals -- and the x shareholders, and today, we will get the official judgment from the hague arbitration court. they were suing russia for $100 billion. the russian press is reporting they will be awarded $50 billion. we have yet to confirm that. beginning -- he does not have a stake in this company, which is making the

claim. does he benefit if we were to see a ruling the made in the favor of this group? >> what he has said is that he passed on all of his shares, is remaining financial interest, to a business partner who is currently in israel to -- he visited him after he got out of jail. -- this ist hurt if just the beginning. >> how does the process work? what kind of legal recourse do they have? >> the russian foreign minister said, legally, we will defend ourselves. they have the right to appeal. we have to wait to get the judgment.

if they fail in that appeal, what we're likely to see our efforts to phrase -- freeze russian government assets outside of russia. the largest oil company in jewel, some of the crown assets, $50 billion claim. compare that to a $66 billion market cap. they would be watching this very carefully today. >> how does that leave bp? >> bp owns a 20% stake. one would've thought that bp would have thought this through. falls further .han where it already is they pump an enormous amount of oil. fall on theares would suffer.bp

>> we will continue talking about this. she will tell us more about this. all of that is coming up next. ♪

>> the short-term response would be anger. it will be to resist any pressure whatsoever to change

his attitude. he has already failed to secure ukraine in the way he had hoped. his efforts in the east of ukraine to provoke a widespread popular uprising has been disappointed. he is in a trap. whether he will respond by making things worse, it does not make any difference as to what we do. >> andrew would talking about russia's response to stricter sanctions. we have the case coming through today. we have sanctions potentially being plied tomorrow to russia as well. let's put it all together. a lot to think about. what did you make of what we

just heard? a lot of anger? frustration the plans are not working out? it has clearly failed. ukraine is moving further and further away from russia. the fighting in ukraine is ideas.ying european off.at is quite a long way nevertheless, how does russia respond given all of that? we have the possibility of significant financial sanctions being applied tomorrow. what is the response going to be? what does the response look like? what does it mean?

what will russia do in terms of retaliation for sanctions from the eu and u.s.? purposes,for domestic they will have to respond. it is very likely to be some sort of generic measure. the second thing will russia train to defend its own economy -- the second thing will be russia trying to defend its own economy. economicof recurrent nationalism. make them hold significant financial reserves and russian banks. be therd one would response of your crane. -- of ukraine. the ukrainian effort at -- you could call it

a trade war really. let the situation -- the situation is changing quite rapidly. the red cross has designated the conflict as a war. that has significant implications. we have the u.s. providing evidence that russia is shelling -- shelling ukraine from its own territory. >> it is not very publicized, but very important. it is a confidential statement from red cross. it involves russia as such. it is a designation of the conflict as a war. it changes the status of those involved. it has certain obligations under international law. we could see a case in which international war crime is constituted.

>> the ukrainians describe what is happening as terrorists. that designation no longer applies once we get into this application of four. -- application of war. >> they would be equally civiliansto protect and not use certain type of weapons. it changes the status on both sides. what they do and don't do. >> the sanctions will provide a blow for moscow. we just talked to ryan about kos case, how big of a blow will that be? that was a demonstration of the authority of vladimir putin to the oligarchs. do not mess with this side of

the fence. if there is fullback, that changes the root -- if there is blowback from that, that changes the relationship. looking at now, russian state owned banks. considerations of a ban on supply of energy. would be the considerations of potential ban on supply for the oil sector. even if they did not pass, this is something this will be in the back of everyone's head. be offeringll financing. be wary of supplying

for the new project. >> how big of a blow is this? >> it is very difficult to quantify. russia will try to appeal if the -- if theoes against market capitalization is 66 billion dollars in the blow with 50 billion, that is 80% of the value of the company. >> bp has 20% of that business. it would be quite a significant problem. >> nice to see you, to a very much. we will take a break. ♪

>> the art world is divided. he is one of the world's most successful living artists. >> i am an artist. i live and work in new york. some of my better known artworks would be michael jackson and bubbles, my stainless steel

rabbit, bowling job. -- balloon dog. i did not make any judgments about anything. i start to find meaning in certain objects or images. eventually, i realized i want to make a gesture without. that whole process could be two years of following my interest. once i decide to make something, another two years in the realization of the object. i've the studio and i have about 130 people. i have a 3-d department, painting, sculpture. i am the captain of the ship. artwork, you have to take into account the price of manufacturing something which can be quite high. in the past, i have lost money

on some of my works. on my balloon dogs, i lost money. haveore polarities you can in the work, the more it imitates life itself. i enjoy the smooth surface because it defines the location. when you have a gazing ball that is reflect ding in 360 degrees, it affirms that your anticipation is necessary. when you move the abstraction, the reflection changes. i want people to have a greater sense of their own potential through interacting with my work. for "on the move." you can follow me on twitter. ♪

>> ruling against russia, the company -- the country could forced -- could be forced to pay $50 million to the owners of yu kos oil. ryanair shares rally as it raises profit goals. international pressure mounts on israel. the un security council demands the end of the offensive in gaza. we will be live in tel aviv. good morning. you are watching " "the pulse."