international humanitarian effort. over to you. >> richard glenn may finally be starting to pay off. he promised he is well the vision for growth. shares are higher. back to you. if you are looking at futures, we are a little bit lower. i did say we're are coming back off the best day since april for european stocks. manus cranny is at the touch screen with more. where are we going? >> very open.

-- very good. they are expected to open lower. obama supporting al badi in terms of iraq. we're down by an aide at this stage. -- by eight at this stage. divest theirng to international business. equity markets are coming in a little lower. we are waiting for the

reading, looking for that to decline probably for the eighth month in a row. down.see what is trading it is financials that are lower in italy. equity markets just coming off the boil. we have had a correction. 50 did not self correct. 105% rise. a world cup was quite nice. net revenue also rising. there was a little bit in line that they had run a contract with the royal navy. we're waiting for them to open.

the reality, they miss. the market was looking for a number higher than that. they confirm their 2014 targets. are three stocks. we will have a look at conversations this morning. at two-year yields were negative. that has come through is negative yields will continue to push the search. in many ways this is a mispricing. europe is overreacting.

to pay in terms of insecurity is not necessarily the right answer. >> i think she is probably not the only one thinking we have overreacted. we have a lower open. opened a quarter of one percent lower as well. equitiesof european helped manage more than $28 billion of assets. the big one that stood out for me was overweight european financials. that failed very quickly. you have a stress test. how are you on this sector? evaluation recovery.

it has been slower than we anticipated. they will benefit from that. valuations are still very low compared to pre-eurozone crisis. i think they can get decent return. the other thing holding the banks back is this asset quality review going on with the ecb. does that concern you? >> not really. a lot has been done over the past few years. it has been well flagged. hadcentral banks have plenty of time to get on the case of the local banks to get their acts together. i think the worst of the capital rating has been done.

if you are a bank you are not going to go out there and utilize your balance sheet aggressively when you're not quite sure at this stage what the ecb is going to say to you. i think what is happening is banks are being held back by asset quality review. that frees up lending more in europe. withhappens to coincide the program that comes in september or october where they are offering incredibly low long-term rates. i think the system gets freed up. >> one of those is demand for credit. demand will bee there. are you optimistic about that? >> a lot of businesses haven't had access to that credit.

the demand is there. i think the larger types of companies bond through cheap corporate bond deals, which are below two percent. >> really quickly, food and beverage took a lot of heat. that's not the reason for your call to go underweight. >> the reason we are underweight has to do with this cycle. these were safety stocks. they're valuations got been up to high levels. you can buy love towns on five times earnings. >> there we go. he stays with us. we will get more from him in two minutes time. here is what is coming up.

all about geopolitical risk, but it is hurting some companies. the profite off that falls more than 50%. in two minutes. ♪

>> welcome back. and onstreaming online amazon five tv. here is a stock that is on the

move. eighta up right over percent. projectingorecast sales of 11 billion kroner. it just so happens the man sitting next to me hold this stock. you must be a happy man. >> i am happy. it has beaten the figures. the market likes the numbers. this company makes affordable luxury projects for 40 pounds apiece. they are benefiting on the margin side. come downmport has significantly. a big boost to margins at the same time sales are going down nicely. >> if you're interested in do you have to have

monetary experts as well? >> you have to have a close eye on the silver price. big movements to make a difference for them. it has been a volatile commodity in the last few years. it went up, which killed their profitability. along with a change in management. >> we will leave it there. up.ora is the wider market is down. paris down byr in almost half of one percent. .esterday stocks were up everybody was saying the situation in russia and ukraine was de-escalating. its wayn convoy is on to ukraine. the vehicle is part of a humanitarian effort, not a military operation. ryan joins us with more. what are the details? does it feel like the situation

is easing? >> too early. it is about 1600 kilometer -- no bottle 1000 kilometer or 600 mile journey. group.ve to move as a they have to coordinate with the red cross. this is allegedly part of an international aid program. there are those who say this has not been coordinated, that it would violate rules of humanitarian aid. rubber meets the gets to when the convoy the committee also saying before itust stop

reaches the border. fighting raging. no sign of that just yet. the big concern coming from the united states, european union, and ukraine is russia could use this humanitarian aid convoy and assistance as a pretext for a proper incursion into the country under the guise of a as theyping operation have seen in parts of the soviet union. :'seave you the word of foreign minister. he hopes they will not be too muscular or tattooed or that the russian and ukrainian convoy starts shooting at one another. lots of concerns. russia says this is he humanitarian aid that the people direly needed. for it.have to wait >> to me this seems like an uncertain situation.

i don't think it's clear at all what is going to happen. investors in russia, how are they responding? >> we saw global stocks up a little bit on the sense there is some sort of easing. the russian stocks had a muted response. the ruble was down. fair to say people are trying to make up their mind of what this means. the other thing to keep in mind is one thing that moves the is how stock market people interpret sanctions. the indexes are saying it is looking at what the sanctions introduced against russian country -- russian companies mean for its investors, saying it is going to have consequences, maybe even for saying theyasically are looking for more guidance

from all fact. -- from the treasury in the united states. ultimately they are saying this would create albums for investors interested in any type of new capital equity raising from the companies on its index. they have this plan to cap the number of shares listed within their indexes at the number now or the number when the sanctions begin to make sure any new issuance is not part of it. the russian stocks have been a big mover of the stock market. i am sure it will continue to be one thing that weighs on investors minds going forward. >> we will keep talking with the head of european equities. detailu hear the kind of ryan is giving now, does that feel like the escalation to you? tion to you?cala

>> i don't know. we took a position to scale back. specifictocks with businesses in the region. we don't know the way mr. putin is thinking. we took the view that we would sit on the sidelines while this is going on. >> you definitely have exposure to this. the dax has been at the front lines for the pain, but you emain overweight. >> it is mainly to do with the cycle. we think the business cycle in europe is still in the opening stages. we think it will be one of the biggest beneficiaries. because of the actions of the ecb back in june, that stemmed the currency rise. versus the dollar was rising to aggressively.

it starts to become prohibitive to german businesses because their export businesses. with the euro starting to come down it makes it more competitive. the profits are worth more. >> talk about the potential for recovery in germany. when i look at the bond market i see signs of inflation, low growth, german bond yields. yields at record lows in spain and italy. it doesn't quite add up, does it? >> it doesn't. when you have 10 year bond yields just over one percent, that's lower than at the height of the eurozone crisis. itis far more positive than was back then. it's the way people are clustering into safety to give

them the way geopolitical events are going on around the world. >> if you believe in recovery surely those have got it right. >> that is what we believe. built on theis assumption of rising bond yields. >> would that we disorderly? -- would that be disorderly? >> i think the reason is that inflation is so low. more on the u.s. side. at the end of the day european bond yields will be determined by what happens with treasury yields. because inflation in the u.s. is the fedetty low, with stops tapering, i don't think we are going to get an aggressive rising bond yields because inflation is so low. i think inflation will be contained because of what is going on in the oil price, which is strange in itself. eightl price comes off dollars to $10.

it means the price of gasoline and petrol is coming down aggressively as well, which means u.s. consumers dollars in the pocket are rising, which means they have more money to spend on other goods. very.s. economy is consumer focus. we think inflation will be contained. that will stop bond yields from rising aggressively. >> when we talk about bond yields in the u.s. not rising aggressively, when janet yellen introduces what you could call the pivot, our bond markets going to look at that the next day and say, we will have an orderly rise in yields, or will they do what they did last year? >> i don't think so. i don't think the fed is going to take any chances at all with the bond yield.

it plays off the housing market. ? a drug he is talking about reforms is he talking to the french? >> -- when mario draghi talks about reform is he talking to the french? >> i think so. it is an international market as well. >> as we head to the break, the consumer products maker beat estimates. they see the escalation of the russian conflict and turmoil in the middle east having an negative impact. we will talk about that next.

>> welcome back. it is coming up 8:30. the consumer products maker responsible for everything. the company warned he a political issues in ukraine will have an impact on the bottom line. said the russian situation would impact the second half. is that just speculation or do al exposure? >> it is not a substantial

consideration. they are ahead of the four-year go all. -- goal. they have got a little bit of room to play with. habit ofny does have a cutting its forecast. analysts will be looking to see how that develops in the second half. >> how likely i is it this could damage the targets? >> i couldn't speculate. bit.tock is down quite a one billion is not an insubstantial amount, though it is by no means the lions share. how putin to predict is going to react. the untenable factor. aren't they

highlighting this morning? >> they are talking about the beauty care segment. there was a misanthrope of comparable basis. the amount they have been spending on public city in north america. that has been an area they have been investing in m&a. nonorganic basis as well. >> that stock is taking some heat. you have the cac 40 down by 0.7%. down today by 0.5%. coming up we are going to talk about another company and have a gaming company is trying to change its fortunes. stay with us. we will be back in two minutes. if you want to follow markets, stay with us on twitter.

, to >> welcome back. 30 minutes into the trading day. strong day of gains yesterday for equity markets. all of that happy talk about tension easing, i don't hear much of that this morning. least preferred list, never a good list to be on.

henkel, you were just talking about it. you have a big mess on the organic level. growth was slow in the second half. if you want to understand how much exposure they have to russia, 200-5000 employees. eight production sites. it is the number four market. the ceo did warn about this long before the scenario escalated. silver, trinkets, charms, all those little gifts you can buy and you can build up your collection. pandora stock up 10%. silver prices and margins, those are the critical issues. pandora says their quarterly profits rose by 54%.

u.k., europe, and asia doing just nicely. >> critical. stocks up significantly this morning. iraqi prime minister has rejected a transition to a new government. he increased the presence of troops and militia in the capital baghdad. sent 280 troops from moscow to deliver humanitarian aid to southeast ukraine. the reports say the trucks are loaded with food, medicine and drinking water. the u.s. warned russia not to use the mission for -- as a pretext for military action. lawmakers could impose sanctions on russian companies. -- onesured to be

measure would be to block the flow of natural oil. >> our understanding of the intent of the cabinet ministers is a ban could be imposed on the companies. countries, other european companies or any other company would be able to get a guest 3 rate. >> what does that mean for the end consumers in the european union? you say could bend the transition of gas of some russian companies. we are only talking about one guest company, right? that's gazprom. >> theoretically, that is also

possible. european company can have contract with ukraine. so one interpretation i read yesterday seemed to suggest that what you are talking about is that, in place of ukraine transiting that gas from the russian border to the eu border on the west side of your country, there would be new counterparties, european counterparties that would take the gas. effectively, the europeans would take the gas from your border to pressure -- to russia. what does that mean for price? we don't believe it should drive price higher. agreementon the reached.

transit, the prices remain the same. >> sometimes the stories that are are to understand, i don't have a clue what ukraine are doing. but there you go. that story has legs. news, betscorporate on digital slowly start to pay off. optimism from investors. >> that's right. the pictures so far ain't that pretty. in the first4% half of the year for richard glenn. this is a company that was in the midst of restructuring. match fit, it was called. said,ial performance they

look, was going to lag. come about 50%s of those on the ground to focus online. it is all about getting onto your computer, your mobile, your tablet. and revenue did fall in the revenue space. they have been spending big getting the playtex system ready. but it is working in terms of customers. they added 48%p, in terms of the people that signed up to their digital presence. 28% of those people, about a third are active users. they are making bets, half of that mainly on the mobile. that is really the future, the mobile. you can get the statistics and timelines offered. also pay by paypal, all on wallet. they won't be able to target you, market you more efficiently. they can do that. they know who you are and what

your digital presence is. it seems that the ceo has had a stay of execution. he has been under a lot of rusher. they -- pressure. they have had a lot of profit warnings. many knew that the financials weren't going to look pretty but the digital business is starting to bear fruit. >> shares might be up today. there might be optimism in their. whole, industry as a inflation is the big headwind,l absolutely right. >> we are about to get a new tax coming in the united kingdom. you are getting a new 15% online betting tax. will this be a help? perhaps it will help flush out some of the smaller players, the smaller competition. but will it eventually be a hindrance? -- this is ang to

code of conduct for gambling companies. it is all about responsible gambling, helping make sure the player is not getting themselves into financial difficulty. it is hurting their margins when it comes in particular to their overall machines that they put in place. there is also regulation coming on board. if you're going to put in a bit more than 50 pounds come if you are a player, the customer is required to pay that up front. payon an account perhaps -- on account perhaps. they wanted to be safe for players. if you navigate this world, make sure the headmans -- the headwinds work for you eventually. it's been a long time coming because lab rex -- because labrokes has been very slow to

the digital party. >> it is down by a most 25%. that company has taken a beating this year. let's talk with a board member at tiger, the trade association representing the u.k. game industry. we are not talking about gambling. we are talking about videogames. big picture, what can labrokes learn from the videogame industry? >> it is hard not to have a sense of deja vu from a videogame's background. these big layers have big shots i'm a big industry or big revenues german by hard-core consumers, not necessarily mass-market, but a strong recurring group of consumers. every thinks it is great and there will be more of a news.

let's -- more revenues. revenue is note coming in from digital. and then you have regulations coming on top. that is how the gaming industry was a few years ago. the prognosis for the established players is brilliance. you see what happened with videogames. the high street players have all gone bust and the industry changed. digital is the business. we've got smartphones now and tablets. powerful as are as a playstation 1 or a playstation 2. 90 quit for a tablet these days. they are spreading everywhere and the business has changed totally. the question is whether labrokes is enough to handle it.

are left with a huge legacy issue, 2000 shops in the likes of labrokes. what do you do? do you shut them down? of business are moving out of high street retail and to digital. it means more millions -- it means millions more people worldwide. generally, that is positive. but in terms of the business is raced around that, the terminal had almost the exact same background in the retail business. secondhand sales have cannibalized the market. for a short time, they did very well. but they were more on the retail and they masked the decline

overall of retail. i would not want to be in these businesses in what is happening with the retail. what are you doing to use existing new technologies to drive new people to come in, not just people in the u.k., but also people who gamble on lotteries but not necessarily on sports coming in to gambling with labrokes. andhen i look at labrokes william hill, the labrokes brand would translate to online well. so what is it doing wrong and what should they do to get me to go on their website? >> i think it is very difficult. labrokes is not worried about william hill. in games, it was not established players who did well.

they ended up eating their lunch overnight. about those rather than william hill. thatam hill has a brand people trust. trust in gambling is probably more relevant than trust in videogames. what they need to do is build on that and go beyond that core audience. the core audience is only good for any certain amount of money in any place. you have to expand to the people who gamble on the lottery. how to use networks to drive more engagement. they communicate with each other by facebook. how do you do that with gaming?

it is very hard to do that. it is -- it requires a very new mindset to do that. >> the beauty of candy crushes you can play it for free. if you want me to go online and play games, you want me to spend money. >> this is exactly the point. digital distribution allows an entirely new business model. --e the game boy for free give the game for free. it drives millions of dollars of revenue each. they are unbelievably successful financially. people only pay if they want to play. the digital distribution platform means you can get it to every single person almost on the planet instant to honestly -- instantaneously at no cost. but you could not do them before hand because there was a cost to

establish it. >> some don't make profit. >> some have to make the profit as well as the revenue. both gambling and videogames ought to be extremely profitable. the minute you go successful, your margins are sky high. the margins of your games are sky high. you have no in between the player and the seller. you don't have high street taking 50% margins. so your margins are astronomical for digital. it is 70%. >> that is the challenge. thank you very much for joining us. setext, the tech giant is to begin production of a new generation of ipad amid two quarters of sales declined. what are they doing? ♪

>> it's time to talk about apple because of supplies in asia have started to manufacture new ipads. by tim kopin. what do we know about the lineup? >> good afternoon. ofm taipei, this is the home

all high precision. we have two new ipads coming out. -inch screen, the full-size ipad, which is pretty much the iteration they came out all those years ago, that is already in mass production. that means they are ready to bring it out to market and show it off. zone .9, the smaller, the ipad mini, that should go into production. those are coming by the end of the year. that is on top of the iphones we know are coming out very soon. we reported back in june they were going into mass production. that, on, we reported september 9, we should expected unveiling of those iphones with larger sized screens that should compete with the offers of samsung and others. so apple will be stepping up of the size of the iphone.

so those are for new products coming out towards the end of the year, fulfilling tim cook's be action that it will busy pipeline for the company in the second half of this year. >> let's cut through the noise very quickly. launch of the the new iphone with a bigger screen. does that not cannibalize the sales of a sector that is already in decline? an iphone with a bigger screen can make phone calls. the ipad mini can't. the yearsve seen over and sam sun is probably one of the leaders who has been playing htcnd with form factors -- has been bringing out larger phones. some people like something a little bit small. a lot of people, once they tried a larger phone, they don't want

to go back to something small like an iphone 5 or an iphone 4. some do want to use a tablet-type device but feel the iphone 7 is too large. with a range of form factors, companies like to say that they like the customers to decide. but the difference between the larger iphone and the ipad mini, making phone calls, phone factor come you cannot put in ipad mini in your pocket. thank you very much. the post is coming up at the top pulse isur -- the coming up at the top of the are. >> we've got some serious geopolitical analysis during two hours of "the pulse." are we really going to see the ukrainians voting to stop russia

transiting gas across their territory or is there another geopolitical game at play here? on the corporate side, buzz feed, this start up in the media industry has received $50 million of investments. att values this news is this 850 million dollars, more than "the washington post." try to digest of that story with eileen burbage. >> thank you.

>> we are nearly an hour into the trading session. yesterday, they were talking about tensions easing. stocks were up. today, stocks are lower. >> tension is still there. 280 russian trucks headed for the ukrainian border with a humanitarian aid program. when they get to the program, that will be important. then they get across the border and this is where trouble begins. we just heard from the ukrainian red cross, which is different from the international rent ross, which -- red cross, which russia said it agreed this with. according to the ukrainian red cross, that convoy cannot come

over the border until that fighting is over. >> you talk about fighting ending, you mean ukrainian takeover of the rubble outfitters. >> i guess you could interpret it as that because ukrainians thatrefused a cease-fire the separatists suggested the other day. it is easy to understand why they would do that because ukrainians have surrounded the separatists. they are holed up in these big cities and it looks like the end is up to them. so why would they agree to a cease-fire? a kid be great if russia is part of an international aid system. this would be great for the market. this could be fraught with lots of trouble. we saw fighting with russian and ukrainian forces. we are not there yet, but that would be bad news. >> thank you very much. "on the move" is over.

follow me on twitter.

>> making putin pay. the u.s. wants moscow not to use aid trucks to send in troops. contract -- the ukraine conflict could hurt business. welcome to "the pulse," everybody. a c