>> at a standstill. largest dam, british forces take control of most of the dam near mosul. this is reversing some gains. drag, downproperty in a majority of the country's cities. >> and the battle for brazil. an offer with as much as 7 billion euros. brazilian units.

>> hello, and welcome to countdown. i am mark barton. accepted and ukraine cease-fire in talks in berlin last night, no agreement was reached, according to the german foreign minister. hans nichols joins us. was there any progress at all? >> well, the foreign minister of germany says there was progress, but he did not elaborate, and he stressed several points, briefing reporters earlier this morning after the talks concluded that the situation was difficult, it comes at a difficult time, and difficult seemed to be his word. the goal, of course, is a cease-fire. and there are future victims. over five hours of talks last

outside ofin berlin, berlin, and yes, they talked about cease-fire and also the humanitarian situation in eastern ukraine. into the meeting, the ukrainian foreign minister, here is what he had to say. now all sides are heading back. steinbrenner wants them to head out later today. hope to get a sense of just where things stand. >> what is the latest on the ground with the convoy? they you have mentioned, want to watch these vehicles.

clearly russians are still supporting the rebels, and they are claiming they are controlling and have raised city.flag over the this is a city of 400,000 residents. it would be one of the cities were the humanitarian aid convoy would potentially deliver a. -- aid. >> tanks, hans nichols. russia widens the ruble. seven rublesfrom

to the dollar to nine. russia plans to free float this year. that is a little bit of breaking news. >> that is the seventh consecutive daily gain. sinces the longest run december of last year. those are the russian markets. let's leave it there. from the center of china. let's talk about the july figures were out. cities took a hit.

>> good morning. that's right. we did get rises overnight. i guess the numbers show you have more cities showing month on month decline for new-home prices. the magnitude seems to still .uggest it is more cooling that is isolated to several cities so far. we're looking at three out of the seven posting year on year declines. exclude whatlso you would classify as affordable homes for the social housing projects. overall those prices are a little bit higher compared to last year. there is still a positive. rate we may in fact seen

negative returns on home prices. we are looking at demand. the chief economist is basically rates, a lot of people are still not willing to take out mortgages. another one is we are seeing more developers in china start to cut prices. they will hopefully get inventory to start moving. unsold in china compared to last year. china composite look at market reaction. the numbers when backup. the shanghai composite when backup. >> thanks for the roundup. the brazilian assets continue

with telecom italia planning to raise stakes of the $7 billion offer. caroline hyde promises to play it straight. ordering. -- ordering. quite theproving catch, this brazilian asset currently owned by vivendi. telecom italia has said they want to expand. they have got a unit in brazil already. they want to grow their presence. we understand they could come up with an offer worth 7 billion euros. how does that rate down? they say, we will team up our in brazil, and you can

have a percentage of that business. 20%.l also give you potentially they could agree to distribute content as well. about content. it wants to expand that. this is what we understand is on the table. telecom italia has already got the big diamond ring on offer. it is 6.7 billion euros in value. >> we now have a figure in terms of the potential size. it is 7 billion euros. i am finding one of the things you brought up clearly is everyone might be talking to one , but they might actually spoil the whole thing in terms of competition.

they want more competition. this is less competition. that is not going to be easy to get the resilience to agree to. >> in this way the communications minister is the one we are talking about right now. he has said, i prefer if we have more competition, not less. both telephone -- both telefonica and telecom italia are offering to combine their units. with this him in a activity you are not getting more competition. you are getting less. moree seeing consolidation. that is what brazil is worried about. you have to keep players. you also have got an a tell. both of those will have to deal.e this ide one works out, italia,it is telecom

they have got to try and provide of the situation. they will bring added competition. many have argued that. in france they have tried to they said, they will add to competition, not actually reduce it. it is going to be a slight worry. they want to get in brazil because of the overarching growth potential. >> they just don't have in europe. >> we are seeing revenues from your phone calls, text messaging -- it is deteriorating. not only is their high competition. you and i are not texting are making as many phone calls as we used to. this is why they are so desperate to expand in an emerging market which has a younger generation wanting to access data via their smartphone. >> vivendi might end up at the stake either way.

through telefonica it has a stake through a holding company. >> they all seem to be interrelated. it gets a little murky. >> there is telefonica. they hold the stake, which they all want to unwind. >> they want to unwind. maybe regulators have been a little worried. no matter what, vivendi could end up with a stake. vivendi now want to have a stake in telecom italia? >> they got that far. >> they don't have it directly, but they might be able to get the exposure. drugmaker --the japanese drugmaker rose overnight despite denials it is to become a subsidiary.

this is why i love this. this is 1974, rising as much as 21%. saypeople we have spoken to spend $10s to billion. not an processis of reviewing the plan. they are already partners in oncology. oncology is big, isn't it? >> it is huge. they look at some of the numbers. accounted forogy 64% of the pharmaceutical division. that is up from 38%. that shows you the concentration they have. then in terms of where they are relative to the rest of the market. $25 billion of sales relative to their next big competitor.

this whole move is the kind of drugs you are talking about within this theme is all about development. >> it is happening within the drug industry. year on year that is up by 626%. i dug deeper. 12 deals over $5 billion. five asterisk, which didn't take place. has been a big deal. >> the second daegis deal ever. this is their second biggest ever deal. it is a massive deal if it goes through. be nice.

>> everyone denies. up, it is ukraine. it is under fire. european stocks are feeling the heat. littlertainly do show a bit of volatility. we talked to the cio. that is coming up next. stay with us. ♪

>> european stocks are at the highest level since 2012. here to talk uncertainty in the markets is patrick armstrong. a very good morning to you. thanks for joining us. what are your three biggest worries? >> it is russia. iraq. geopolitical. i think it is doing quite well. you are getting good growth out of the u.s. it is europe stagnating. the economy is strong. interest rates are low. >> it is not enough to change position on being long

equities. >> we always think should we put hedges on things like that. equities are fair values. >> really fair values? is where it is. you are coming off valuations that were very low input thousand nine -- in 2009. we don't think there is going to be a higher interest rate until the middle of next year. the united kingdom will be earlier than that. but supportive environment not what we have seen over the last couple years. 25% since 2009. it is underperforming each of the previous years. what happens? do we get momentum's of three or four percent?

>> i think you can expect six or nine percent. historically equities have given you return on inflation plus four percent. that is what they are priced to give you. >> we had some discussions. it was interesting. you said there was still no aid growth. are you worried about the lack of wage growth? >> wage growth is very concerning. you have seen unemployment fall. you have not seen wage growth pick up. luckily americans spend . >> they do it on their credit cards. >> the u.s. is very well positioned. >> how are you positioned within

the eurozone given what you have just said about the economy? >> bmw is a german company, but it is selling into the united states and asia. that is where its revenue is coming from. it is domiciled in europe. >> 10% fall since july 24. we have a correction in bmw sales. >> their numbers were great. >> is that the russian sphere -- fear? >> it is. >> would you buy the dax? >> i prefer to buy companies. toyou said you want exposure asia. is that through indices? >> i am playing through companies. bmw, coca-cola. l'oreal is starting to expand.

>> stay there. we will chat more. you mentioned bmw. patrick armstrong stays with us. o.u do, to see you in a minute. ♪

>> welcome back to countdown. with investment managers, patrick armstrong is still with us. did i still get it wrong? get vocab you larry lessons here. -- vocabulary lessons. you want to play exposure to also land rover had cracking numbers. wereike to stop. >> we talking about markets being at fair value. a were trading at nine times earnings. they are well-positioned. defendable profit margins. it is good exposure into high-growth areas. >> part of that is valuation and earnings, but you also quite like technology as well. given everything janet yellen

has said in the volatility swings we see in a variety of indices, how does that stack up? are you specific on the technology. >> its large-cap. you are getting a dividend yield on some of them. it is trading into the alibaba appeal. the bloomberg consensus has alibaba at 200 billion. you do the math. that puts you to 46 billion worth of alibaba stock. >> does that mean investors have no faith in the core business? >> it is trading at $36 billion. it has $45 billion worth of alibaba shares. it has re-billion dollars in cash. a taxt has got is consequence. still long high yield.

just started getting back into high yield. no alternatives in fixed income. >> is that a reason to buy an asset class? >> if you are bullish on the economy, you are getting some yield. it is craziness where the yields are. it is one percent today. .e were short france last year we made a little bit of money from that. the yields are too low. bond markets and equity markets are seeing completely different situations. one is priced for normal equity growth. >> which one is right? >> i think the bond market you have to question which one is definitely right. is technical factors pushing things. >> you are long latin him

himadium -- latin palladium. >> you have demand outstripping supply. >> we have to leave it there. the chief investment officer. stay with us. it is all about house prices next. ♪

>> welcome back to "countdown." i am manus cranny. time for a quick check on the foreign exchange markets. let's take it off with dollar-sterling. carney does it again. the governor of the bank of england, the story in the sunday times, the bank of england are prepared to raise rates before wages rise. they have the confidence that that will happen. there is unanimity on the mpc. when they move, it will be slow. 1.6658 last week.

there is very little that can stand in sterling's path. you have seen the highs in terms of sterling. moving on, the dollar as we go towards friday when we have janet yellen hosting the other central bankers, the dollar just coming off the morning. unchanged you could call it. he had it at a two-week low this morning. bullard saying that the markets are too dovish versus how the fomc views the market. the fed are a long way from price stability. consumer price index comes out tomorrow. that is estimated to come out lower than previous months. dollar a little bit higher this morning. >> these are the bloomberg top headlines. mark carney says the bank of england may raise key interest rates you for workers' pay increases. he told the sunday times the

bank does have confidence that real wages are growing. germany's foreign minister says progress is being made in truce talks in berlin to end the lighting in ukraine. this comes as kiev says its forces destroyed part of an armored column from russia. the red cross wants safety guarantees before it inspects any convoy from the country. in iraq, kurdish forces are taking control of most of the country's largest dam. this reverses some of the gains made by islamic state militants in the north of the country amid the largest up limit of u.s. air power in the campaign to help secure the dam. cut askingomeowners prices by the most in six years this month. slump or aresales

we seeing the beginning of the end of a booming u.k. how prices? great to have you with us this morning. we had rix in here last week. they are showing a little bit of a decline. you are showing the biggest drop in almost six years. he did good? .> i am not sure it is holiday season. those who come to market have a keen reason to market their properties competitively. let's face it, after years of rising prices, property has become unaffordable or beyond true value in parts of london. i think it is good that someone has come along and made everybody say what is a fair value for a property. capital demand is still strong. >> i like what you're saying here, the supply is coming up.

it is up by 20%. to be are beginning little bit more realistic in terms of putting their property on or they just don't want to miss the last window. >> i would say they have missed the last or best window. indeed, 20% more property coming to market. if you compare that with the national figure of 8%, london sellers are looking to cash into a degree. that means more choice for buyers and more prices down. >> is it a turning point for the london market? and they said maybe not. we are still fairly buoyant. >> i would say it is a definite pause. obviously we need more property building in london. you have the top end of the that fell quite heavily.

that is discretionary sellers this time of year. those who do have priced very competitively. the mass market, the demand is still there. >> what impact have the new mortgage rules had on the market? is there a worry that once banks start to get through the backlog and understand the processes, that loans will start flowing once again? >> we are seeing that already with some of that backlog coming through. a lot of it is sentiment. as well as the backdrop of interest rate rises coming up, people know that mortgages are harder to get. that means that sellers have to be more realistic. that has had a very clever calling affect without raising interest rates. you part of the discussion i was having about yesterdaymark carney

in the sunday times saying, -- sounding a little bit more hawkish in terms of what they are prepared to do and when they are prepared to raise rates. from the people that you talk to, do you get the feeling there is a lack of continuity? is he a flip-flop man? is the message getting distorted? >> if you look at some of the earlier comments, we would have expected a rate rise by now or by all them. pushing out to next year, there is a possibility that he is just maybe warning shots and in may they may decide not to raise rates before the election. people have made that comment. >> yes indeed. to a degree, the housing market is inspecting it. if you trail long enough, it is not necessarily a shot. haven't actually seen a rate rise. they don't know what one looks like. >> what do you advise sellers

and buyers right now? to lookrs, you have around in your local market. priced competitively. buyers, you have more choice but that he is looking for a seller that is keen to sell and are going to negotiate a better deal for you than one that can just sit there and wait for the aspirational price. >> year on year, 5.3% nationally versus six point 5%. do you expect that to level out? >> we might see a bit of an autumn flurry. london down from a peak of 16% year on year. now it is 10%. affordability point of view, prices are higher. >> we have to leave it there. thank you so much for your time. from property to art. has hisafrican artist work on the new york union square, being the youngest artist to have a solo exhibition

at the national arts club. his works sell for up to $150,000. he is perhaps one of the most successful art dropouts. >> we are in zürich, in a gallery. i have francis bacon. commercial reality coming to this as a young artist. >> it is reality. your art has got to sell for the artist to survive. we have to make a living. have this justwe lying around forever. this is my job. >> what do you get from being in zürich? >> it is bazaar. people think i am on drugs if i say this, but it is definitely a huge factor. , thee things like the air way of life, the privacy, how different is that? hubyork is the commercial

of dollars, dollars, dollars. it is commercial here, isn't it? >> i think so but it is a different way in which it is commercial. it is a very understated -- new york will always be me. >> where does the concept come from? for a young artist to go, i am going to develop my own concept of paint, where does that come from? that is quite unique. inside macready blue are five components of lou -- >> this is a unique blue that goes into everything you do. >> five different components which created this. >> is that -- >> you are allowed to ask me. >> you are going through a patenting process? three told take up to six years. i don't like it that much. i like it.

it is a nice painting, but i want a little bit more white in it. i like that more already. already a bit better. yes, i like it. >> i know nothing about art. has he destroyed that painting or not? >> that is his work. he just wanted a little bit more white. the gallery owner looking at the floor going, ok. this is interesting. >> he likes his blue doesn't he? >> it is very difficult to patent a color. that is what macready is up to. of what comes with the interest, when you look at his work, the acceleration from what he sold at union square, it is

fascinating. one of the main art auction value or websites out there has him up at the same level as picasso. it changes every week. but, very smart, very young entrepreneur. he has a whole team in south africa. >> who does he emulate? did he mention people who inspire him? picassonk ultimately was one of his great inspire his. but he has taken this from new york to zürich. >> i used to be there. close to there, is it? >> we just popped over, spend a bit of time in the gallery. he is going on with his luxury brand which is about tables, color, not just about art but also the whole aesthetic.

it is not just painting. >> and you can snap one of those up for $150,000. >> now you know what to get me for christmas. poised forp, is iran a sanctions breakthrough? we will look at why investors are jockeying for a foothold in the country. stay with us. ♪

>> could iran be poised for new business? a breakthrough in new talks eased some of the sanctions against the country and that has led to a surge in business. as investorsels and western businesses visit the capital, seeking to gain a foothold in one of the world's last closed markets. bloomberg markets magazine's jeremy cons took a look at whether iran could be poised for a breakthrough. he joins us now. really an article, by the way. beautifully written. some wonderful images in the magazine as well. the sense that i got from this was, 76 million people, the same size as turkey. they buy more cars than turkey, they consume more steam than we do in the u.k.

this is a vast market. >> it is a market which huge potential that has been closed to investors over the last decade. americans haven't been there. there is a sense that if there is a nuclear deal it could open up almost overnight. >> the one thing that i was really reading through this within, hee power talks about the united states and ultimately it is going to take him to make a decision. the usa has become more hostile in these discussions and he doesn't see any need to hold direct negotiations. that doesn't bode well, does it? >> it is unclear they will reach a deal. i think things are looking slightly more positive than that statement would lead one to believe. the fact that they extended the talks for four months is a good sign. there is some sense that there are some workarounds on the issues where there have been

holdups in the past. particularly the number of centrifuges iran will be allowed to have. there is a sense that there may be some solution in sight. they are not there yet. as you said, the supreme leader creating these boundaries which make it harder for negotiators in some ways. >> these are the companies that are there, preparing to be there or wanting to be there. give us a sense of which companies have been most aggressive and which sectors suffered the most from the opening up of iran. >> european companies have been more aggressive. they have less restrictions on what they can do. it is harder for u.s. companies to hold discussions on iran or two line-up partners. some of the european companies never really left. you have the big italian oil company. they are talking about ramping

up in a big way. you have roche, the swiss pharmaceutical company. they have been allowed to be there because pharmaceuticals are exempt from sanctions. they maintain offices. then you have oil companies that oil left like the french company talking about going back as soon as sanctions come off. oil is a huge opportunity. they are talking about $100 billion in investment. autos is a big opportunity. the french carmakers were big in iran. they are talking about coming back. you have steel. huge opportunities in steel. one of the largest steel consuming countries in the world. >> how do you get european companies to tell you what they are doing? >> it was a big challenge. a lot of companies, even though they are there, do not want to talk about it. afraid oftill very the potential reaction from u.s. authorities. u.s. companies are afraid of the

congressional reaction. electric, which has a waiver to do safety maintenance aircraft,civilian they still felt that they should say that any revenues from this activity, they are going to donate to charity. >> it is not easy, is it? >> there is a big anti-iran hawk lobby in the u.s. they don't want to be hauled in front of congress and ask to explain. >> how do we as investors take advantage of this? >> at the moment, the only way would be to invest in a company that is planning to go there or that already has some presence there. iraq investor, you can't plea invest in the iranian market because of sanctions. if sanctions are lifted, there is potential to invest in that stock exchange. $135 billion market cap.

three times the size of the vietnamese exchanges, even though the populations are about equivalent. it has a free float larger than nigeria. >> what about governance? what sense of governance do you get? >> they have rules in place that on paper look would to a western investor. a lot of frontier markets, even the investors i talked to in iran say, there are some issues and there are in most frontier markets. that is frontier market investment. >> we have to leave it there. you got this? >> yes. >> go get your markets magazine. great story. jeremy kahn. >> coming up, taking a stake in rocket internet. the german company that replicates american e-business abroad. we are going to find out what is behind the move next. ♪

>> welcome back to "countdown." i am manus cranny. with us is caroline hyde. you are watching telecom italia, vivendi and telefonica. >> i am going to look at a bit of m&a across the board. , this isilian angle the old guard of italy and

spain, the big telecom giants wanting in on the emerging markets. to spend some 7 billion euros, telecom italia. we could see telecom italia fall about 1% this morning. also, keep an eye on united internet. this is a german company. it has just taken a hefty stake, about 10.7% in rocket internet. this is a bet on the emerging markets story. remember what rocket internet do, they take tried and tested business models, the likes of uber, and they copy them in emerging markets. frontiers that haven't yet been taken on by startups. they take the risk in taking it to a new country, trying to double with a new base of user who isn't quite as savvy on the internet side of things.

it is fascinating, what rocket is doing. it is all ahead of an initial share sale. rocket internet is lining up to sell shares later this year. they want to be valued at about 5 billion euros. what the united internet value them at? currently about 4.3 billion euros. --y snapped up a $.10 stake a 10% stake for 45 million euros. we are getting there. slowly but surely, we are seeing rocket go up and up. already, we saw a philippines company take a stake in it. philippines long-distance telecom took a hefty whack of rocket as well. they paid up about 1.3 billion euros. >> [indiscernible] >> if we are talking telecom italia and telefonica. telecom italia and telefonica are fighting over the assets and

wooing eher with various engagement rocks. >> we started the show on it, we ended the show on it. "on the move" is next. i will be presenting. ♪

here with me now is caroline hyde. first it is the battle with brazil. that's a little more than telefonica put on the table.

are expecting shares to rise. thanuld value at even more has it downited for. european markets just opening. equities at one percent.

news of the free money have dropped. 650 million. it urgently was running. down nearly three percent nationwide.

these have a little more presence. they're going to pursue a $10 billion deal. celia drugs up, telecom italia may pay up to 7 billion euros for that steak. we will see how that lays out through the rest of the day. sterling not exactly moving. wages wee's saying hoped would rise.

we are unanimous in terms of trajectory. united in a gradual movement on rates. the dollar has come off its lows. we dipped slightly when we came into work. a long way from price stability. .he market is too dovish the consumer price index shows a little bit of a draw. let's stay with mark. he is the chief investment .fficer here in the u k we saw how jittery markets were on friday when ukraine said they militarythat russian

envoy. markets are rising. jittersfeeling those that anything could blow up ukraine and russia? >> there have been problems underlying the market. we saw disappointing numbers last week. if you couple that with the real plus the sanctions effects of a shooting war possibly breaking out we fill that is no doubt. is getting worse and worse. europe is not growing. does that mean the day for ecb has beenent proper qe brought forward? >> we think so. robustnever been a recovery. acceleratingen quickly. ishave seen wage inflation

no problem. it is going backwards. would think there is going to be an escalation putting pressure on mr. draghi. minister isforeign set to speak in berlin. let's get to our news reporter on the ground. thanks for joining us. what is he expected to say? >> we hope he will clarify the outcome of yesterday's talks. it took them more than five hours.

there was another statement made by ukraine's foreign minister, who said they have five hours of difficult talks and they will need more time by five hours to achieve any progress. it has all been quite confusing. we know that talks are difficult. there has been no breakthrough. as though we have lost ilia. he is following the russian minister. thanks for sticking around. progressknow how much

is made in those talks. all we know is further talks need to be made. it seems a cease-fire needs to be broached. they haven't told as much. that adds to the uncertainty. >> with some luck, marketplaces back. >> markets are up. standard & poor's hasn't fallen by more than two days for a number of months. it a sensible strategy or not? >> you have to be careful. athink you have to take slightly longer term view. it might not have worked as well as you think. it is very close to flat for the year. be very selective.

>> i will look forward to your minute. ukraine at a standstill. the red cross guaranteeing .afety ukraine. more on the markets. stay with us.

>> this is on the move. the battle for vivendi heats up

with telecom italia expected to raise the rate. european business correspondent caroline hyde. what are the details? >> it is just inching ahead of its rival. it was seen battling for brazil's gdp. this is an internet raised asset currently held i vivendi. it is all about cashing in on the growing continent. seeing pretty lackluster younues when it comes to and i'm making phone calls and sending text. we are looking at expansion for two european juggernauts. italia they are upping

the state 7 billion euros. how are they going to offer that? they are going to offer a 20% stake in itself in telecom theia but also a stake in brazilian asset. together.d team that be able to not only have a presence in brazil through this teaming up, but also be able to own a part of telecom italia and potentially distribute its own content. vivendi is all about tv content these days. actually to asset that as well.

-- access that as well. d seemed to tip the table. >> the regulator in brazil has been saying some things about taking away competition in the .arket >> the key is the overall commission. the minister saying, i'm not very happy about communications easing in terms of competition. insteadmore easing of less. both are making offers that would combine units, not add to them. if you are taking away players that would reduce the competition. you have to woo over the regulators.

telecom regulator and also the antitrust regulator. willing toot some do. what we do know is the likelihood the banks are going to be cashing in. said, not oni has the table. i am not looking to sell. when the board meets i am sure there will be many discussions they will be looking to potentially cash in. it looks as though they could have a stake of telecom italia coming their way. >> let's get back to the chief investment officer.

>> could those be sustained? >> it's about right for where we are today. last year there is multiple expansion, which means the market got more expensive. i think the market is going to be challenged to push further without actual earnings. >> janet yellen will speak at the jackson hole symposium. what do we think about rates,

the projections of rates and how it is going to affect the u.s. equity market in the next six months? effect has been largely priced in. i think the market has taken the that the start of the cycle is not the point anymore. we have been through that. it is probably behind us. the issue is the rate at which it moves higher. that has become more modest. we don't really mind if it is sooner rather than later. we expect fairly modest moves. it does not appear to be a driving your. >> that is why you like emerging markets.

>> if that changes it is a different situation. right now it doesn't appear to be anything to make you fearful of an inflation spike. error it is to be too conservative. >> within emerging markets, it is a big world. >> i would say to focus on asia. eastern europe we have got geopolitics. we just added argentina. let's just focus on that. >> what about from your neck of the woods? >> the view on global --modities it in so much isn't so much you would think there is a tremendous amount of upwards bush. we don't see it being robust. >> the china data on trade has

home pricese, but falling in the majority of cities on weak demand. is the housing market going to derail the chinese economy? >> derail, no. slow down to some extent, so on. in thee a banking sector process of finding its correct size. i think we have this anticipation of the next two or three years headline gdp numbers are not going to be eight and nine. it is going to be smaller numbers. i think you're going to see a shift to more sustainable growth. >> will the markets accept that? that enough for investors? >> i think investors will tolerate it as long as you get stock returns. if the stock returns come

through they will be ok with that. >> what about bond markets? class inorming asset the next month? >> it's going to be difficult. you are less than a percent on 10 year bond. beould expect those to possibly starting to take some minor losses once the rate cycle starts moving northward. in the absence of a solid growth spurt you wouldn't be too fearful of it hurting you too much. it is just the returns are going to be very industrial. peripheral of the markets looking attractive or not? would behey weaken it good to get in there.

i think there is a bit of convergence. i think most of it is behind us. the same probably goes for corporate debt. >> there is more left in high yield. even though we had a retreat in july. >> we are cautious. >> when we look at risk return, we see them roughly similar. rates are.ult >> i am the bottom guide. -- the first one to tell you the bond guy. i am the first one to tell you. it is more to do with what is on the table. it is more a case of we have done really well. we leave the money for someone else. at some point it will start edging upwards. you are going to struggle to make a case on the risk adjustment case.

you look else where. >> thank you very much. the chief investment officer. coming up, he is taking new york city by storm. find out why pictures by this toung artist can sell up f $150,000. ♪

welcome back. television crime dramas popularized innovative police limitsut technological on certain crews -- make certain clues unusable. jonathan ferro reports. 3-d microscope is one example of how new tech can solve old cases. it is able to analyze object in high definition. it helps to turn old fingerprints or old lipton to solid leads. >> with the -- old fingerprints into solid leads. >> we can now use 3-d graphics to understand the dynamics of what is happening. >> re-examining the old evidence is only part of cracking the case. police have to find the suspect

by who murdered the 13-year-old in 2010. italian police were able to pick of foreignpic traces skin cells. they analyzed it against 22,000 .eople these techniques are helping to shed light on cases hindered by the passage of time. experts are concerned touch dna cannot always provide accurate results. if someone touches an object i can find a trace of the dna transferred to that person's hand. it is essential to evaluating how they got there in the first phase. >> for these reasons dna forensics has to be judged as for it to bence used in italian court.

even with limitations there has been some breakthroughs. the dna evidence will be used against him in the murder trial. last year 28 old cases were solved using these forensic techniques. haveover 100 re-open these roof and italian justice does not always forget the past. >> just getting some breaking news from the russian foreign minister. he has been meeting with his contemporary in berlin overnight. sergei lavrov says he does expect humanitarian aid to be delivered soon. he sees progress on the control over the border. the red cross will take control over the russian convoy and

deliver it. first certain conditions have to be met by the red cross. those are the main headlines. it seems there is more, after markets shut down. we are going to stay on geopolitical risk from ukraine. stay with us. ♪ .

>> welcome back to "on the move." i am mark barton. we are 30 minutes into the trading day. let's see how things are shaping up so far. on friday about the situation in iraq. it is in ukraine and russia. it seems to have died down. the sox -- the stoxx 600 is up. ns of 1.5% in three of the markets. caroline hyde is here with three stocks to watch. >> the biggest gainer. it is all about united internet. a sizable holding and rocket

internet. the germany company which capped the likes of transforming using the business model and grows numb and the emerging market. it be close could to 5 billion euros? with 435 a 10% holding million euros. less than the 5 billion euro valuation. could it again as rocket heads toward an initial share sale? up 4%. meanwhile, even though it is a rising market, neste is up. why? it has a problem at one of its refineries. they said an issue in hydrogen pond that can slow down

production for several weeks nestethey tackled and falling. we have seen a sudden drop in values of u.k. house prices. month over month for august and we saw prices/. london,re looking at a 5.5 percent. the biggest drop and sudden fall in more than six years. feeling the pain in the house builders today. let's turn to geopolitics. russia's foreign minister said he's is not see progress in delivering ukraine aid and he soon.sed to see it the 300 truck convoy remains halted at today eastern border. tensions are high. joining us now for a look of what it might be, the senior

russian analyst. thank you for joining us today. berlin/avrov spoke in meeting with his counterparts and he thinks aid will be delivered soon. and talking about the cease-fire and he said it should be unconditional. it seems there were talking about a cease-fire. do you expect them? not at this point. there was talk about the convoy of aid. the real journalism were chasing all last week. it is finally crossing the border but not a lot of aid. when journalists were able to weret them, these trucks almost a quarter full at best. i do not know what will be going on at that end. as for an immediate cease-fire, we saw statements from steinmeyer saying that there's been very little progress made.

frankly, ukraine is on the offensive added this point. it was to defeat the rebellion. it knows a cease-fire will heldlize the rebel territory as it stands now. that is what they want to avoid at all cost. do you think they will defeated rebels? >> it is difficult to say at this time. they have made great ground. they have done in the context of a leadership. we have seen or there's been a big turnover in who was actually leading the troops and the political machinery. and it is weakened, the new head of the has claimed he has received 1201st fighters and armored vehicles from russia. >> how did that get through? that is the question.

ukraine is claim it has surrounded the cities. they may have been named to punch through one of the highways. we saw thursday night, newspapers reporting that russian armor crossed the border. it has been going on for the last few months. it is no secret that russia has been supplying the robles with armored vehicles. chris even though they have denied it. -- >> even though they have -- deniedwill stop >> it. >> the initial confirmation of the allegations set to the convoy had been attacked came from the ukrainian side from petro poroshenko from the website. butthe president of france the actual note about having distorted the convoy came after the report was posted. there is no kind of confirmation, confrontation took

place. isone really knows what going on there. that is the case would almost everything. a very murky, shadow kind of war. it is been doing it in a area where it is hard to get information. >> what does putin want? a guest on friday said he wants to keep the how it is. what did you think he was ultimately? probably whatis putin is going for right now. as your guest said, to create this conflict. i do not think it is realistic. ukraine has shown it will fight. it's committed to taking back as much of his territory as possible and will not accept a frozen conflict. the only problem is unlike, it is not just about this one area. you know crimea to discuss. ukraine said it will not discuss

russia's sovereignty over the peninsula. community saidal we will not accepted this because they cannot accept an annexation at this time. -- she has putin has sort of a red line. he would like to keep the ukraine out of nato. >> is there come price to be made? when all parties were to come around the table, is there an ultimate compromise or not? >> i am not sure there is. ukraine is an barking where it wants to go for full integration. we have yet to see what poroshenko will do as president. represents an axis digital threat to putin's whole system. -- x's schedule -- existential putin's whole system.

it undermines the legitimacy of the system putin has put in place. and telling russia they can have the kind of system as well. and if you have a western oriented ukraine, he will go down in history as the russian president who lost ukraine which will take him from one of possibly one of the best russian leaders in their own histi riography. to the russian leader who brought them to ruin. >> it seems i every guest talks about this. it seems as if there is no solution. you are saying there is no solution. putin will not budge. ukraine was to go one direction. where are we heading? >> i think we are heading where something has to break. yield kiev will have to or russia will have to yield and give in. it is difficult to see how we bring either side to that point.

putin is a victim of its own propaganda at this point. previously, his regime has relied on apathy and deliver economic gains. slowing the economy is down, it has turned to nationalism. it has put on a narrative of easter ukraine and the rebel fighters basically being actinic russians fighting in kiev. if he abandons them now, what does it say about him in the eyes of the russian public who have adopted this narrative? >> [indiscernible] which could fall into recession in the second half of the year, as you say, nationalism has gone from economic strength. the -- does that have an impact on the thinking? >> i am not sure if it does. itthe inner circle as

exists. at these are from the security and the -- people who make their money within russia. who are a larger sector going to get hit very hard by this. we have seen a company and straddling the line. delay 23 billion dollars in short-term financing. large sections. seen 23 billion dollars in short-term financing. reserves that can be drawn. the corporate sector has about $400 billion in debt. that is a shoestring. i think russia will go into recession this year. that is if the national narrative can be sustained on monk the population when their living standards start to bite. when they cannot take holidays. starts to stack. we have seen interest rate at 8%.

to go as is expected high as 10%. when you see growth, you see a situation more like the u.s. in the 1970's. it is a question of what will motivate russians more, their national pride or pocketbooks? >> great conversation. darren mcdougall. asking about overnight talks with russian counterpart. these are the bloomberg top headlines. mark carney said they may raise the interest rate. thatld "the sunday times" the bank has to have confidence that real wages are growing. some members feel the recovery has actually diminished. draghisident mario promises to achieve cash for banks. in a bloomberg survey

cut their estimates, a program designed to boost lending. it is signals concern it will the and out to look of the euro that undermines the policy of draghi. , kurdish forces have taken control of most of the largest dam in mosul. the reverse is some of gains made in the north of the country. of u.s. airopponent power in the campaign to help secure the dam. let's move to iran. they may be poised to open for business. a talk in nuclear talks. it has led to a surge in business for one of the largest close the markets. our reporter took a closer look

of bloomberg markets magazine. jeremy joins us. thank you for joining us. untapped hugely market. what are the opportunities? >> there are vast opportunities if and when there is a final nuclear deal and more of the sanctions are lifted. right now, the opportunities are limited. under the joint plan of action is fairly limited. there are big opportunities in oil. planning $100 billion in investment in oil and gas sector over the next five years. if the sanctions come off, huge opportunities. and steel. it was a big market for international steel producers and it could be again. auto industry. it is an area where it is now under this interim agreement.

automakersbig french who had a big stake prior to sanctions. peugeot is talking about coming back. it is a big market. >> if you are a company, how do you position yourself when sanctions are still in place? >> very carefully is the answer. right now, across the line and you can get fined or sanctioned pretty big by the u.s. if you do this step. people are trading very carefully. they are going in a usually through intermediaries. of this.tial stages they are doing exploratory discussions and those are usually ok. doing basic research is ok. a lot of companies do strategic planning. actually a handing over money or -- that is still illegal.

he got to be very careful. >> if you are a company that is making proprietary inroads, you face a backlash especially in the united states. >> particularly in the u.s. and there's a fear you will be hauled in front of congress and answer questions. very carefuling boston was a they are doing. even in cases where companies are allowed like general electric where they have been able to do repairs on iran's civilian aircraft to keep them flying safely, they said they will donate any revenue from the business to charity focus they do not want to be seen profiting from iran. >> jeremy, is a great article. i read it this morning. a great read. thank you for joining us. let's move it on. stay with us "on the move." stock markets have opened higher. more on that in a few minutes. ♪

>> welcome back. i am mark barton. this is "on the move." the swiss drugmaker owns a stake in the company which was acquired over the past 12 years. we'll have the details. we have to bring in the m&a

reporter. what is so attractive of chugai for roche? >> it is a successful research house. they have worked on some of the big blockbuster cancer medicines. this a big part of the global foot print of roche. they are ready in control and they want to take full ownership of the flows of money from these drugs that goes on within chugai and go forward from there. and a big link to the japanese market. despite problems, it is the second-biggest in the world. >> or do they need to make big deals? do they need to be making this big deal or not? a very conservative company. very swiss for lack of a better term.

astrazeneca and novartis is a big -- that's made big significant deals. so, when you get to these m&a friendly, you have where is our deal? we have to participate. that has to be going on. >> what is going on in the industry? where all of the action, the most action. and they are seeing it worldwide. >> and make a lot of money. it is a recovering economy and there are secular trends quite in particular. one is the easy drugs mostly

found. it is hard to come up with a new blockbuster, it is a long time. it is often much easier to buy it and then develop it. the other is the patent. a lot of important medicines are coming off of patents. other companies, generics can start making them and that slams profits for big roche guys like and pfizer. we have these trends and one along with a recovering economy destined to be driving these pharma deals. >> matt campbell. 8:51. firstis creating a safety suv to be unveiled. the car will have crash avoidance technology to prevent drivers from pulling out too early into traffic. a windingrepresents down of ties with ford motor. volvo reemphasized his reputation for safety while

moving toward wealthier suv owners. the bank of australia set out to more than $400 million for compensation related to insurance. the u.k. operation has weighed. triggering the first drop in earnings since 2000 and nine. isr italian -- vitalia getting ready for broadband markets. that is according to people familiar with the knowledge. the offer would it mean they beat telefonica's offer for gvt made earlier. they compete in brazil fall market. we will be back in 2 minutes. stay with us. we are "on the move." ♪

>> welcome back to "on the move." i am mark barton. "the pulse" it's coming up at the top of the hour. anna edwards is here for a preview. we are on completely different shows. >> it is the summer. >> i knew it was some reason. >> will be talking about ukraine. we are on the ground in berlin. hans nichols is covering. what we are seeing and our team as a wall. sergey lavrov has spoken in the

last half hour saying they have made no progress on the cease-fire. -- what we are seeing and our team as well. the border on russia and ukraine. hans will be with us with plenty of sound hopefully. ange.n sanchez -- assng he is the founder of wiki links. she will be talking. plenty of reporting around his health. speculation he will announce he will leave the embassy that would result in him probably being arrested. what will happen there. one month until the scotland -- as they describe themselves. vote and wetil the will be speaking to both sides of the campaign. pound will surface. >> looking forward to that. is next.e"

the markets are rising today. the russian foreign minister has spoken. he hopes the aid convoy will pass through. markets are rising. next.ulse" is see you tomorrow, nice and early. ♪

>> pessimistic about a peace deal. russian foreign minister said there is no progress on a cease-fire. julian assange is reportedly thinking about handing himself into police. he has had a news conference announcing the roche is said to be in talks to buy out chugai. welcome to "the pulse." i am anna edwards.