talks with the ukranian president were positive. bigger.bytes get thearing to manufacture largest ipad. bring you our exclusive

report. a warm welcome. a positive start. that is how president vladimir putin described as meetings. they met yesterday to broker a political resolution to the conflict on the eastern border. ouran speak on the phone to correspondent. was there any tangible outcome from the talks? ched late intotret the night. meeting we had closed doors and it lasted two hours. arehows that both sides able to talk to each other. there was no major breakthrough. were able that they

to discuss some kind of start of a resolution. both sides agreed to continue talking and both sides say that peaceful resolution is needed but we have heard that many times before. actualo not have any details for this political resolution. step will be that the military's of both countries will begin consultations to install a more effective order control of the border between duquesne -- ukraine and russia. that is the only tangible result of yesterday's talks. and there may be more meetings but this in the future there is no certainty.

>> what is the latest from the eastern ukraine conflict zone? poroshenko and vladimir putin shook hands. handshake iseem a able to stop a war. they are painting quite a grim picture. fighting is still going on in several places. there wereent says the government said several russian soldiers have taken up positions in the region. and are directly involved in the fighting. fact vladimir in

putin confirmed that some russian soldiers had been captured in ukraine. he sought to downplay the incident and said that it was a group of soldiers who helped to patrol the frontier and simply got lost. that is pretty much the situation currently in the eastern part of ukraine. >> thank you for talking to us. putinon the phone from minsk in belarus. rex let's turn our attention to france. the new government was approved yesterday by president hollande. the critics are saying that the new cabinet is unlikely to havee policies that stunted the economy's growth. what are the changes here, let's talk about the personalities at play. about theot -- it is

three troublemakers who define the current policies. the biggest change the economy minister. he is 36, very young, and he is a former banker. he is the new economy minister and hel replace thetiated the buyouts of nutrition unit of pfizer. month before president hollande was elected. he already knew him since 2005. he was very close to him and he was active in the left-wing parties already. month before president hollande was elected. -- but he knewand his vice secy he wasa key role and

plan.chitect of the his theu-turn and opposite. other key changes are for culture. she was in charge of the men's rights and she will become the first other key changes are for culture. woman to be education minister in france. the>> let's talk about consequences of these changes. there is still that open one, the debate between austerity and

the need for some latitude for businesses and some structural change. what is the feeling in terms of policy implications. >> the signal that president hollande will maintain the line of economy policies which include 50 billion euros of [indiscernible] which is 2017. [indiscernible] at least what they call austerity of the prime minister. only 291 seats where the majority is 289 so the

government will have to look for a very broad support in order to pass their economic reforms in the next big one is the budget. the budget will be discussed in the coming weeks in september. the priority will be to revive french growth which has been stuck and zero for the past two quarters. >> thanks for the update. >> let's move on. suppliers are prepared to [indiscernible] there are new products expected to come from apple. >> that is right. we know that september 9 is the date that everyone is expecting the larger iphones to come out, not just one but two larger iphones. we know that ipads, the standard

ipad and the ipad mini are coming out but the thing about this new device is it will be the largest ever and the first time in almost two years that apple is coming out with a new iteration of a product. what we have been saying is that there are updates to existing products and there is a subcategory so that is a big step for apple. about business customers and trying to tap into any trend in an increase in business spending, is that what we are going to see happening from here? is very much about business. you consider the consumer market. there is not a lot of call forgst consumers but business scenarios that are business presentations or road

warriors trying to sell products or for things like video. the array of different things you can do with the larger ipad is out there but what we have seen recently in the last few months is the deal that apple has made with ibm to jointly work on various kind of corporate focused products. and so that is something that ceo tim cook has said very clearly that corporate is an important area for the company. if you look at the wider pc is no growth and it is weakened consumer. the only area where they have been seeing strength is corporate. corporate teams to be a strategy that apple wants to follow. >> i imagine some of the companies that you follow in and around taipei, some of the suppliers will be interested. who are the winners and losers going to be for the sector? traininglook at shared

after the report, one of the major suppliers in korea, lg display all doing quite well in trading today in asia. to two-year highs on some of the stocks. the big thing there is for the lcd industry. the main areas where they try and sell more of their lcd panels and tvs. computers are not doing that well globally. there are smartphones but is six times more surface area. if you have a device that is larger still that is good news for anyone who is in the business of selling out -- who is selling the displays to the market. that is a lot more output than they could get from their product. >> thanks for joining us. joining us from taipei.

>> reforms and less regulation. what do you -- euro zone economy thes molly t -- to speak to -- when we speak to the chief economist after the break. ♪

is said to winal european union approval to buy ugo. give thease would ritchie global -- liberty global new customers in the netherlands. unrest in ukraine poses a security threat rather than just a gas supply issue. he spoke to blumberg in an exclusive interview. is prudent and stocking just in case. -- it is the largest .roblem in a larger country

[indiscernible] announcing plans to invest $500 million in partnership with a chinese manufacturer. francois hollande unveiled his economy. thank you for joining us today. a new cabinet has been announced in france. whole event represent the beginnings of further anti-austerity body emerging within europe be they politicians or other parties?

a realization that structural reform is necessary. at the k -- seemed time obviously growth and mario draghi made it clear in his speech that fiscal policy can play a role in supporting the eurozone. in france there is a recognition that things do need change. reforms. structural >> there seem to be some calls from parts of the french establishment for germany and german consumers to do more in terms of fiscal stimulus. is that conversation going to gain any ground? >> i hope so. you look at the budget positions , germany is in a strong position to relax policy. germany should be spending more.

the other thing which is key for the eu more generally, the effects of the u.k. on the fringe is creating a single market of services because that is the growth area. that is driving the recovery in germany and france has been woefully lacking in some sector activity. >> everybody talks about structural reform and we need to what is it -- [indiscernible] he reckoned structural reform would add to growth. what do the french need to do that represents real change. making labor cheaper is a huge issue in terms of how much it costs to employ labor. taxes.ducing

what i would highlight is the long burn. we saw in the u.k. that reform plus.actor in the 80 the same was true in germany. in the 90s kicked off plus. >> we had a few days to mull over mario draghi's jackson hole speech. looking beyond expectations you do not believe it would be a big deal, do you if they implemented this. rex i think if they had done it -- it would have been different. the decision was to acquire the banks and that is a result issue but did not stop the eurozone

falling back into recession. q he would the recession -- be helpful.qe would if he continues to be dovish the market discounts qe. it helps france and helps germany. >> you will stay with us and we will pick that up. we want to know whether you think the euro is the solution.

>> welcome back. went to the break the one thing we touched upon is europe and mario draghi and his inflation. the japanese saw the decline of their currency is being the panacea, the answer to mark isng and we had saying be careful what you wish for because it did not transform the japanese economy. is the lower euro panacea for growth? weak sales inry haveack drop is you do not a strong economy. that is one issue.

the other thing about the is thee which is key eurozone is incredibly open. and a lower exchange rate would be hugely helpful. >> this is a bit like the funding for lending scheme in the u.k.. are you hope -- hopefully it will bear fruit? talks --rst of the two it is about the periphery carry trade buying their own sovereign bonds. next year it is more interesting. german companies will find it easy to get funding from banks.

>> and is one of the lessons also. rich company you can get funding very cheaply. you may not want it but you will be given it. they get a kicker back from the bundesbank for lending in this way. they will be benefiting as well. focused on the effects on germany. it will take time. >> the other big event is the referendum and the measure of anticipated all until the. is there an element of complacency about this because opinion polls show it is for the a.

markets.lly forex >> there are different views. also the opinion polls are still suggesting a fairly close result. and who knows, some have done incredibly well so we will have to watch the opinion polls to see whether support grows. it would not surprise me if we have more impacts on u.k. financial markets. >> you said -- who is the blog and what are they watching? what are the nuances? will -- some investors follow this closely. this was slightly biased. >> thanks for joining us.

we will take a short break. >> we will talk about china telecom. news is the big announcement overnight. a bloomberg exclusive. we will tell you the details next.

>> welcome back. a.m. london time. let's kick it off with the euro-dollar. -- we have or less decided to go with cable. got the dollar sterling -- 165.48.65 it will be -- point 165.

volatility has been dropping. will the bears win and move dollar sterling lower? let's have a look at the euro dollar -- euro sterling. during up for a much bigger move that broke a 50 day. point 7936.is said talks putin with his ukrainian counterpart were positive. he met in minsk. poroshenko said russia and other

block partners have a strategy andattle the ukrainian army pro-russian levels -- rebels. a case for independence has not been made. the group set uncertainty surrounds a number of issues including currency, regulation, tax, and pension. include douglas flint. and the cooperative thanks ceo. israel and thomas have agreed to an egyptian brokered cease-fire plan to end the conflict in gaza. thousands of palestinians poured into the streets. some firing weapons and shouting along with thomas. under the deal border crossing between gaza and israel has been opened, while fishing zones off the coast have been extended. the peace between

hamas and israel, we can speak on the phone to our reporter in jerusalem. tell us details of this peace accord. >> the immediate steps that are going to happen of course as we have a cease-fire and rocket attacks from gaza and israeli retaliatory airstrikes and that has held, it has been quiet since the accord went into effect. israel agrees they will ease up on some of the border crossings that it has with gaza. areexact the tales of that still sketchy and will have to be worked out. egypt will open the border crossing and israel will extend the fishing limits from three to six miles of the maritime fishing limit. a lot of issues that have not been resolved. the opening of the gaza aaron seaport or hamas disarming under super bad -- international

supervision. expectations, do people think that this cease-fire will hold? >> in the short term, i think so. there is a general sense that first of all both sides are fairly exhausted by this eight weeks of fighting. hamas in the last week suffered some big lows, some of it -- some senior leaders were killed by israeli airstrikes and israel suffered several thousand soldiers killed. the worst military loss for israel since the war. break.des want this looking over the long term there is skepticism that this agreement will hold in the long-term. >> will this provide relief for the israeli economy which is -- has been affected by the conflict and it is thought the central bank will cut interest

rates again. >> that is right. it definitely had an impact on the economy which was already in a slowdown mode and there was concern in the last -- second quarter, concern it could go into contraction in the third quarter. the tourism sector will need time to bounce back. the israeli economy has shown itself pretty resilient. it usually has been able to bounce back in one or two quarters of the most from previous conflicts. so probably definitely will shave some percentage points off growth this year but we'll have to see if it has any effect be on that. >> thank you. bloomberg's israel bureau chief. let's turn to china. and state-controlled china telecom. they reported first-half revenue up 55.3%.

it is a lucrative market for the domestic players in the foreign companies including tech giants such as apple and sang some -- samsung. a little bit more on the market analyst. let's talk about china. one of the big edict coming from you have got to reduce your marketing spend in subsidies and that is the big implication across the entire market. >> it does. we should start with framing the reforming issue. one of the concerns is sharing wireless towers. i think these the first initial signs the government is concerned about returns on incremental investment. one of the key issues you

highlighted is subscriber growth has been strong because of those levels and the valid question for investors as subsidy levels get cut act, are they going to be able said -- to sustain the same kind of growth especially since we are in the early stages of a 4g transition. transitionioned the process. with this kind of pressure , does from the regulator that hold back the rollout on 4g, does that put china on the back step as a center, as a leader in terms of telecoms? >> you could argue it might. what i have to say is confusing having reviewed the market is --re are conflict three conflict in trajectories.

marketve been losing share to domestic players. the magic price point is 1000 renminbi. it is not clear to us if cuts in subsidies are going to be offset by things like three minutes -- free minutes are up free data systems. that tends to work on lower end onns or hot -- it works higher end plans. >> what does the chinese customer want? you mentioned the price point. what drives the chinese customer, do they evolve from voice to text? they have the big demand for data, don't they? >> they do have a big man but at the moment data consumption is quite low on a relative basis. using 200are megabytes a month.

to 500 or 1000 in other markets. in hong kong it is closer to 3000. data services are viewed as being too expensive. china is similar to korea and japan. price cuts will be part of the challenge. the second is most customers are not willing to pay up for content and that does present some challenges. video structure is not working well in terms of usage or on the business model in terms of advertising revenues. >> i want to get your response, we have this berg story that apple are going to go for a larger screen, a larger ipad in terms of size. they are scaling up the size of the iphone, a great deal of debate. market, of the chinese is that going to be a plus, if that is the road that apple are going, bigger screens, the ipad.

what is your take on the story? >> we do not cover apples i cannot comment on the stop per se. in terms of the current handsets, there's a lot of large-format devices available in china. i would say that makes a bigger difference when video usage takes off given the relatively limited video usage it may not be as important. if you look at it based on market data 20% of handsets are 4s. if apple wants to expand they need to get rice points down as opposed to a larger screen. apple does not have the same kind of content tie and in markets like china. customers do not pay for content and the itunes store is on a limited basis so there are challenges in terms of growing the market. larger screen to make a bigger difference in developed markets where content is key and videos are a bigger driver of traffic. you.ank

>> we will take a short break. russia's biggest sailmaker reports results this morning. we take a look at whether the company is taking a hit from the sanctions against russia. stay with the program.

preparing forre the larger ipad. apple has been trying to shake up the ipad line. consumers are moving to smartphones with larger screens. china's two biggest car-rental companies are planning to ipo according to people familiar with the matter. it will raise $600 million this year. china auto rentals are seeking asey to expand their fleet growth and leisure travel spurs the use of rental cars in china. the value is at $10 billion

according to a person with knowledge of the matter. snapchat is the third morse -- most popular app among adults. the funding would value snapchat at more than three times what facebook paid for the start up last year. >> russia's biggest steel maker reports first-half numbers. the simultaneous weakness of the russian ruble may have helped boost profits even as political tension worried investors. here with more is caroline hyde. good morning. a beenve -- have unaffected by the sanctions environment so far? >> they have been. this is a company owned by [indiscernible] these are key business figureheads who are deemed to be

within putin's inner circle. they have not had sanctions. it has carried on regardless. many fearing that this has been overdone. citigroup said that very thing. the trade sanctions are unlikely to spread to privately held steel companies. little chance also of construction weakening. many fear that the fee for world cup may bea world put off or canceled. they're saying things look pretty brilliant, they might remain buoyant in terms of construction and this is a company that is desperate to export more. >> the family were saying it was unlikely that sanctions would restrict trade and if next they did their arm other markets for these products.

they are looking to expand outside of russia. >> the amount is company produces, aliens of tons of crude steel, 60 million. 15.5 million tons of products. this is where they are a dominant force. they have a load of exposure to russia and the ex-soviet state. half of the sales coming from there but they are big in the americas. their begin asia and europe and the focus has been america. it has been upping the production, upping exports. they have almost half of the market when it comes to real track. they want to be a year in the east and south america. they want to take on the key competitors. and so interesting this is a company seeking growth and expansion and it has a lot of businesses spent throughout south africa. they have steel parts in russia and america.

this is not just a russian company. it is quite outward thinking. >> that is something that is closely associated with a movich.ich -- abra will diphough sales 10% we are likely to see avedon $1 billion.ose to has been mixed in south africa and we have seen an improvement in the u.s. and europe. but why is profit doing well, because the russian ruble is weekend. because the south african rand is weaker. cost will be far less and we have a much weaker currency and you are bringing home revenues from abroad.

this is why profits are set to do rather nicely. >> that is what ubs is saying. the potential is overlooked, something -- we are coming out of that dip. global growth is still very small and that will happen. thank you very much for that. we will get the very best insight into those results. joining us more later, the cfo z. -- ceo of evra stay with us. ♪

>> welcome back. an hour before the open of trade. carolyn is here. let's start with you. beautiful picture. this has to do with this little piece, a fountain haired dresser. the owners are finding that the horses are having their manes plaited. their tails cut her

braided. that is getting a buzz out of this. a little bit unnerving. are nott to -- they that business minded quite yet. it will have [indiscernible] you who isell business minded. she is on the front of all the newspapers today after 35 years. kate bush is back. had become obsessed. pounds tokets were 49 135 pounds for her concert. they sold out in 15 minutes. i have two tickets. my wife said why don't you sell them? you do not get it.

she has neighbor -- never even heard of kate bush. the excitement around her return was so much that she could have blown on the kazoo for two hours and the crowd would have gone wild. she did rather more than that for the best part of three hours. this most english of visionary pop stars transported to us -- us to another world. factor."ine is "wow bad karaoke of "wuthering heights." buter voice is not as high her deeper voice was used to powerful effect. >> am i right that she has called her children heathcliff

-- i do believe that she did name her children after "wutheringin heights." >> she read the book later. timothy dalton was in it and she watched the last 10 minutes. "wuthering heights." >> she read>> she used a lot ofh writers as the basis and a lot of the body of her work. >> do think that lady gaga has ever seen "wuthering heights"? >> you will get the fans going. "the guardian." a ban on e-cigarettes has been stubbed out. there will not be a ban on the use of e-cigarettes. >> they are not allowed on this set. the department of set -- health

is saying they're making changes to the rules, changing the age limit. to ask for ask them other -- they also asked for other changes. -- flavors laborers [indiscernible] >> doctors are divided. >> i use a little bit of pouch and a little bit of cigarette. --workignng on this show let's get to your story. >> it is the victory nature or the peace pick -- picture or the peace pictures. is it a long-lasting peace? the streetsto rejoicing. "countdown" continues and we are minutes away from those figures

of evraz. futures, london set to open 10 points lower. we will talk about sanctions and what putin has or has not agreed in the next hour.

>> no breakthroughs in belarus. talks were positive but no compromise to end fighting was reached. french president replaces three ministers in a move to and a cabinet revolt over austerity. >> apple's byte gets bigger. they are manufacturing its largest ever ipad. we will bring you our exclusive report.

a very good morning and welcome. our top stories. a positive start. that is how russian resident vladimir putin described talks with his ukrainian counterpart. they met in minsk to rocher a political resolution to the conflict on ukraine's eastern border. we can speak to our correspondent who is live in minsk for us. was there any tangible outcome from these conversations yesterday? minsk haves in stretched themselves late into the night. scheduled ain had behind closedting doors which lasted two hours. this is a good sign. both sides are at least able to talk to each other. the meeting did not result in a quick stop to the conflict. it appears that poroshenko and

putin were able to discuss some to solveentative start the crisis. both sides agreed to continue talking to each other and the next consultations will be andeen ukraine and russia effect a more effective border control. this is important because ukraine accuses russia of allowing tanks, fighters, to flow across the border into the rebel held area. >> president putin said the policingroops had been the border. what is the state of play on the ground in eastern ukraine, where has the conflict progressed to now? vladimir putin acknowledged

yesterday that some russian soldiers are in ukraine and being held captive after they -- described, when into ukraine and got lost as they were patrolling the border. in general, it does not seem that a handshake between putin and poroshenko was able to stop the war. pro-russian rebels seem to be andting a counter-offensive new information from the ukrainian defense ministry. killedy that ukraine has 225 militants are the last 24 hours. provide information

the ukrainian side. fighting is still going on and talks whichite the took place yesterday. >> ukraine saying russia keeps amassing armored vehicles on the border. that just came through. thank you very much on the phone from minsk in belarus. resultsve had breaking and caroline is with us and said to run through them. >> we have seen sales still slipping. not as bad as had been expected. we are seeing a relatively weak market for steel in terms of steel prices and demand in certain countries. you have an talking about the slowdown in the economy. it has still managed to secure revenues to a certain degree.

$6.8 billion and earnings before amortization up 17%. they say this is about asset optimization and efficiency. it is also about cutting debt. this is a company that was pretty acquisitive and brought assets in north america. they have been focused on reducing their debt burden. they were able to refinance recently with international financial institutions, socgen, ing, deutsche bank providing them with new loans. >> this was a big debate. a couple of keepers ran stories on this because of the sanctions and the issues in association with various russian [indiscernible] az has not been affected by sanctions. both bigof others,

business, they have not been sanctioned. the will not expand into rabidly held steel sector. certainly citigroup has been saying. seven overdone so a company that is able to cut debt is looking has plantsit already in south america and north america. it keeps looking to grow so the biggest area is steel. they are begin mining as well. >> you will come back with more later on for the market open and you will get the best insight on those results in addition. it is the ceo who will join "the pulse" later today. up 16% and amortization up by 29%. hasend profit is up and it

announced a special dividend of top of its first ever interim dividend before this year. the company had 44 branches in london. it has opened five and has 49. to more through the end of the year. the key is looking ahead to the second half of the year and i am looking at the statement here. we expect the growth in transaction volumes to slow from the rapid rates seen in the first half of the policy initiatives introduced in 2014 and a controlling mortgage lending together with the expectations of increases in interest rates and now having it impact on short-term demand among buyers. and --oing to filter filter in. expect were saying they the u.k. property market to do nicely but they see a flatlining in the london property market in

2016 because of the high rate of growth we're seeing. they're suggesting it cannot be sustained. london has priced at the slowest pace in 16 months. they said it could continue. they have taken away a nice restaurant near me to open. they are omnipresent. >> that is a polite way of putting it. >> thank you. and producing the largest ever ipad. it will be bigger than this one. >> we're looking for a ruler. nobody has a ruler in this office. the new product is due for release in 2015. we are in supply with the story. originalmeasured the question mark ? old technology.

it means it's -- i will take your word for it. the thing about the bigger ipad is there focusing on the corporate market. they went for the many and the many did very well. thats are getting bigger, is the other direction for apple. they are following htc and samsung, getting larger and the phone area. this is a big deal for a few reasons. what they have been bringing out newhe i-devices have been iterations in the same form factor, the same size. this is the first time they have gone for a new form factor since 2012. the first time in two years and the push is in the corporate market. they have said, tim cook has said corporate will be a key area for them. going for something larger, we

do not know what it will be called. people speculate it will be called ipad pro but that will be up tto apple to decide. they are guessing there would be a market for it. they're going for a larger form factor. >> that larger format that you are referring to, it will possibly change strategy. they have the new relationship or this more substantial relationship with ibm. this is about the corporate attack or going after the laptop. laptop.rate and if you think back just a few ago, the, five years corporate road warrior salespeople and so forth, they take the laptop to a presentation and they type away on the keyboard and show the laptop but more people are using and ipad for exactly that. it is easier, lighter, thinner. on the microsoft ecosystem people have been doing these

detachable for you have a pad and a notebook. you can detach it or swivel it or whatever. it is a convertible product. i have seen in the ecosystem there is some kind of demand for something larger. it is also a size that apple has for the macbook air, it has something around a similar size. it may be crossing over, some might speculate that there is a certain amount of cannibalization. s.ey've run on different os' idea would be something corporate but i am sure there would be a lot of consumers who would like to be able to watch their latest tv shows on a larger ipad as well. nks for that round up. newoming up, france plus cabinet has been announced. will that change france's

stagnant economy? find out what is the latest on this story and we will have some analysis for you after the break. ♪

>> welcome back.

francois hollande unveiled his new economy minister who was previously a banker and advisor to the french president replacing his predecessor. we can speak to the former advisor to the french treasury and the managing partner joining us now on the phone. thank you for joining us. were you surprised by any of the appointments, he seemed to appoint a number of his allies. was there anything for the socialist party in this? >> not at all. [indiscernible] by bringing more rebels into the cabinet. he showed he is their ally. >> he is a next banker and

worked on the ge outster deal and tell us what we know about his stance on the austerity versus reform debate. [indiscernible] this is [indiscernible] he clearly has the is this [inaudible]though to experiencenomy a u-turn. not behority will challenged. >> how is he seen in business amongst is he popular

business leaders in france? >> he is. he is a former banker. [inaudible] [inaudible] implication does it have for the ability to pass legislation, are they able to secure the majority he needs to pass reforms? key is [inaudible] i think that he is going to be and to keep the majority [inaudible]

so they have to keep it together, because it is [inaudible] the socialist arty. >> there are voices calling for germany to provide some sort of fiscal stimulus for the euro zone economy. do you think those weiss's will get louder or quieter and will berlin be listening? germany -- the pressure is going. you see some kind of subjective allow germanyld

[inaudible] >> thank you for joining us. we continued discussion of the new cabinet. willoughby it enough to turn the french economy around? ♪

>> let's turn over to france. critics are saying the new cabinet is unlikely to change the policies that have stunted the french economy's growth. joining us live from paris. what are the main changes here? >> there is a major reshuffle. ande are five new ministers troublemakers were openly defying policies. is very young, 36 and he is a former banker. he used to work at rothschild. by nestléted a buyout

of pfizer's nutrition unit. that was in april 2012, one month before president hollande was elected. wings active in the left circles. vice chairman and economic advisor. there is a reform targeting companies and has been close to business leaders in france. he has been traveling with holland at the eu summit. a u-turn and he has been hailed as a symbol of finance. the other big changes are for culture and education.

getting aion we are from morocco. ad on the left you can see foreign trade minister becoming the new culture minister. these are the changes for the finance foreign ministers and these key roles, there is no change. >> what is the impact on policy with this reshuffle? >> of course the signals president hollande and the prime minister want to maintain the reminding on france livedsion that france has and its means for the past 40 ,ears so maintaining the line

they will have to bear in mind that they have some rebels at the national assembly. there is some fracture and they will need support to pass the reforms. at the moment they have a short when the 291 seats majority is 289. , maybe thet socialist party will have to look for opposition votes to pass this next budget. their priority will be to revive the french economy. french gp has grown by zero for the past quarter. >> thank you. to recap, first-half sales up and pretax profit up and we have a special dividend. shares in september. shares rose 73% and they have

fallen 26%. the big thing here is the look ahead. the growth in transaction volumes to slow from the rapid pace we have seen in the first -- because of the expectation of higher interest rates. >> there are no -- there are more branches to be opened. it can still go in and get a drink. -- the reasonthe they charge more commission is they will do a better job. [no audio]

what will it take to sustain long-term us that -- long-term success? we will discuss. ♪

>> welcome back. we came into london this morning on four straight days of decline. analysts -- we had some confidence numbers. we will wait for the french and

the italian to come. on ther confidence is dime in the eurozone. versus a seven year high in the u.s. gete are by orders and ready for further falls. says bytokyo mitsubishi asian currency. moving the euro sterling along. you have the euro that had been the pound andnst it is continuing. it is breaking at a 50 day moving average just on that level. have support at .79 [no audio]

.7936. poroshenkot with and megan -- in minsk. battle between the ukrainian army and pro-russian levels -- rebels. in the case for scotland independence has not been made. the group says uncertainty surrounding the number of issues including currency, regulated -- tax, and pensions. israel and hamas have agreed to an egyptian brokered cease-fire plan to end the seven-week conflict in gaza. thousands of palestinians poured into the streets, some firing

weapons in the air and shouting, long live thomas. the crossings are being opened while fishing zones off the coast of gaza have been extended. announced a double digit rise in profits for their second quarter results. good to see you. theregnificant is it that is a warning about something of a slowdown in the second half? asked these guys are on the frontline and it is not just prices that matter. it is volumes as well. >> we were just talking about the change in prices. cut and that is in

the double digits. they had to cut quite aggressively. >> they were new figures last month. there are buyers and sellers meeting in the middle and people were getting a little bit greedy. thatg i am not going to go far anymore. some of the rhetoric, maybe we can wait or get a better deal. withstandtgage owners higher interest rates or not? there could be a sharp fall in prices. what happened here is people are borrowing more and wages have not kept up area that is how they kept them selves on the latter. they're saying that this is

incremental. >> are we going to see more government action around the housing market? >> that is unlikely. when you see as yours they have been tightened. at thatrnment will look quite positively. they will resurrect lending from just tome buyers and slow down the market a little bit which has done more measures, perhaps unnecessary. it is in a state of flux. thehe debate has had all of juice, going around the london

area. there are still legs left in the british market. happening in the wider context? >> there is definitely a slowdown. tend to- london does lead the rest of the country. starting to pick up again but that ripple has gone out. >> they are seeing [indiscernible] >> record numbers cashing in. if you have a place in london, now would be a good time to sell. profit is up and special dividends, that is the second consecutive dividend. >> let's not forget prices will go up about 14 or 15%. that is a dead market. that volumeefore

and prices is still going fast. >> thank you for joining us. test drive the latest aston martin supercar if you would like. that be this with a stride some have ever had. we will look at the virtual reality from the lead designer. car but in is a real a virtual world. is incredibly exciting to design a car from a videogame because you do not have the real world constraints. it is time to push the boundaries without the huge investment. you have to design the car as if it was a real car. engine,o have a real

virtually real and have suspension, we have to give a weight. we have to give performance figures, breaking figures because they could tune all of that into the game so the reality is all there but just in the virtual world. the front of the car, it does not feature a typical aston martin grille. we have a very definitive shape. we have a very pure and simple side. very dramatic and at the back there is the c-section where we deconstructed that. it is incredibly futuristic. audience.h a huge if you think about the amounts of people that download and

play, it is huge and if you provide something which is the coolest and they're going to want to download your product and become part of your brand and they understand your brand. it is vitally important for us. virtual world is becoming more about reality. most people will play this game and play the car in the game and then see this model. not the other way around. this one is unexpected because they will be used to see it in a virtual world so it is definitely the way of the world now to try things in the virtual way. and revving its engine. the show kicked off this week. later.

>> the moscow motor show kicks off and nissan has big announcements. they are launching nine new models this year. one will be the first affordable and russian-made hybrid. here to talk business any

world, live from moscow. thank you for joining us today. >> good morning. >> it seems as if you are emitted as ever. you are launching nine new vehicles there. you have increased localized production. is that the case, do you remain committed despite the geopolitical landscape? this is very much a long-term view. conditions are less than ideal. we're seeing the market down 10% but we are up 20%. we have grown out of market share and we're looking at growth to 10% in the next three years. that is an easy thing to say. we will achieve that in terms of

investment. a number of areas where we are investing heavily. in terms of secure capacity. >> you're carrying on that ownership with [inaudible] what else. -- what else? rex we are investing in our russian capacity. we are doubling our capacity and that plan. we are introducing or reintroducing the brand that gives us much more market coverage. we believe that investment, local investment in times of design will give us a platform to deliver that market share. >> you have seen no impact whatsoever from what has been russia,g with regard to ukraine, the slowdown in the russian nick -- economy. sales fell by 22%. the market contracted from

january to july. nissan is not feeling the pinch whatsoever? >> the market is impacting on everyone in the sector. we are bucking the trend. , theu look at the numbers market this year to date is down 7%. we anticipate the market will have fallen by around 300,000 units in terms of global demand but this is the second year of contraction. it is not helped by the anxiety around potential sanctions that the story here i guess is it is a strong market for nissan. in terms of volume and continues to be so this year.

the potential is there but we are feeling a little bit of pain in the short term. nissan -- we are 20% i had compared to a market that is 10% down. we are bucking the trend, we are head of the market, not obviously declining. >> can you tell us about the spillover, the european car market has risen for 10 consecutive months from its 20 -- 20 year low reached in 2013. could that have birth the recovery we have seen in the european car market? topping -- talking specifically our forecast is a level market. our region includes western europe, eastern europe, and

russia. i am anticipating a flat market. we believe, we are forecasting contraction and we believe the market is down. compensated in other parts of europe. western europe is still relatively fragile. we are seeing good demand in the u k and some recovery in southern europe. the concern is term in france which is relatively stable. from a demand perspective we see that as fragile within europe. rex what are the models that are isling the most, what model stable, which ones would you say are underselling, which ones are you not so satisfied with right

now, give us a sense. saw 50,000. this was the big winner for us and we are up everywhere. very strong in our crossover products. we have a new one around the corner which will produce volume. -- we're not saying a dramatic decline. if you take the market as a bele i believe there will less traditional products and we are very strong with suv. and we are not saying but declined. we are unique in the marketplace.

there will be different performance levels and we are happy with the performance of all our models. >> you're losing money within europe. $1.6 billion in the last quarter -- ¥1.6 billion. when his nissan going to be profitable within europe? the brand in europe, we did not talk about regional profitability. profitable, in europe. this year we will be making profit. we do not quote figures. anticipate in the midterm, europe is a very tough market, very fragmented. we are -- we have sustainable profit. >> thanks for joining us today. man of nissan europe.

a russianing market. >> maybe there is impact from russian-european issues. 66 trillion. that is the value of global equity. record high in the s&p 500. it closed above 2000 for the first time ever. will it injure, will it stay, it it is not helping at the start of trade. we talked to john faro next -- jon ferro next.

>> welcome back. 7:53 a.m. some gains in the market the last two days. today looking different. >> we are looking at record highs, closing above 2000 for the first time ever. is it the most unloved but market ever? the background. yesterday.panel the case was made very strongly

for continuing buying equities. >> you had over $2 trillion in assets, not one of them wants to buy german bonds with a negative field. who is buying german bonds? >> there is a lot of money waiting in the sidelines. does, if it does -- >> you have to think about this. the bonds and equities have been ,oving in the same direction going higher with each other and those yields have been supporting equities as well. what happens is that great rotation, you saw the spike in yields on the perfidy -- periphery. >> it is a great debate which is asset doubles being created by qe.

janet yellen is worried about tech stocks. the nasdaq went through its 2000 level. a number of days ago. you have equity markets just to shape lower. >> and loads of people running the valuations. back to the boom in the early 2000's and whether eluate shenzhen stretched. it is a way to measure these things but we were looking earlier and on that basis it did not look stressed. >> the amount of stocks hitting 52-week highs it is hotter than it was in the height of the tech double. >> will we get more stimulus from the ecb? the lower end of lower bound. explain. >> i am not sure how much lower you can go.

>> there's always room in the basement. stay with us. "on the move was quote is next. ♪

>> welcome to "on the move." i have two words for you. record highs in the united states. tuned. with us is manus cranny and caroline hyde. a littleems to be suspicious of the global record high that was set. worth $66ities are trillion. in 2007 $63 trillion.

russia is talking to the ukraine. we will find out how tragic europe looks a little bit later. paris wheret to they have a whole new regime change. the new government comes after criticism from the former economy minister. the big change is the economy minister. the former banker and former advisor -- what is he going to change? >> and airbus has avoided being hit by sanctions.