have been added. we wait for reaction from russia. >> the latest on scotland. another poll setback for the nationalists. the latest poll gives the and a four percentage point -- gives campaign a 4% lead. >> plenty to think about this morning. we have scotland dominating headlines across the u.k. a lot to think about. you are looking at futures, futures higher. wait what we have to the russian retaliation is. if you are looking at asian had -- rkets, the nsc

the longest losing streak. strangely enough, something to do with profitability. analysts are raising their profits above those cutting their outlook. it is ea's versus sinceor the first time 2012. mario draghi meets his cohorts on the political side this weekend. draghi's message to european politicians, step up to the plate and back the program. some risk.assume the ecb cannot do the heavy lifting all on its own in terms of monetary policy. lloyd's is demonstrating a little bit of a bounce back.

equity markets are rising a quarter of a percent. there are a couple of interesting stocks. we have a few deals. and gas assets for one and a quarter billion dollars. they have said they are in preliminary talks. that has been going on for several months. there is a deal to be done. the stock to open. airlines is definitely a feature. you have the baggage strike. unchanged.t aircraft the ceo said the strike could between 10 to 15 million

euros per day. those are some individual stocks. it. me what you think about maybe this helps cut down the verbiage. dollar is trending higher. is aan see there coagulation of currencies virtually unchanged. move on has done its the downside. you are seeing gauzy dollar begin to change as well. the currency conversation goes on. you have that wonderful poll. basically saying if there is he a vote in scotland you could see a 5% to 10% drop in the value of sterling. 61% say you could hit 146 when

30. if you get a gay vote you could see a bounce. -- if you get a yay vote you could get a bonus. insider get some perspective. the chiefned by investment officer, where he oversees more than $4 billion of assets. i had someone from scotland sitting here. today i am blessed to have someone from catalonia. we are going to talk about independence in spain. this has to be a very different story from what is happening in scotland and the u.k. >> they will not be able to carry on with the referendum scheduled in a few months time. differencesme historically, but because of regulatory framework there is no

way the central government will toow catalonia and contemplate it. it is illegal. saw it around 20 basis points. if you put that on a longer chart it looks like nothing. in your mind, would you still hold spanish debt? >> i would not. the ecb madeecause the actions soon enough. a backdrop. in time we will see we were able to borrow money at rates even ower than the one in the u.s. it is part of the dysfunctional world we live in. and make sense in the short term. long-term you probably would not

be better off holding spanish bombs. >> he is repeating what he already said -- spanish bonds. legs he was able to do more. i was interested to hear about the potential impact in europe. it is not going to match the u.s., will it? >> it will not. differentnment is so the impact will not be different. abouts not a market all s, so the bond market effect is very difficult. the banking system is a lot bigger. the banking system is dealing nonperformingd loans. you just had the ability to excerpt influence in the banking industry.

has arelems he exponentially higher than the ones bernanke had in 2010. let's not forget bernanke had the help of the american treasury, whereas there is no way germany will be provided with fiscal stimulus. >> talk to me about the wealth impact as well. andhen you lowered rates when you bought treasuries in the u.s. as part of qe, that contributed to lowering the cost. europe.rices in the ownership of equities is a little over. course it is a lot different. they are flexible to do that. >> you heard the man.

he stays with us. we are going to talk about equities at the break. we will be back. stay with us. ♪

>> welcome back. we are live in london. we stream in everything. the eu and the u.s. are bringing

new sanctions against russia. ony targeted sanctions state-controlled companies. even though eu officials have oneasized reversibility sees it differently. take a listen. worst violations of international law since 1945. annexation of territory in violation of so many international agreements that until we return to the status quo, i do not foresee a complete removal of sanctions. long asbe in place as we have a major violation of international law. >> let it to hans nichols. see morecompanies individuals on the list. give me the breakdown. >> all of the companies have been published in the e.u.

registry. these are companies that will be aevented from raising security longer than 30 days. the pipeline operator trance net also includes united aircraft, nine defense industry companies. they will also be prevented from dual use technology. we have nine new companies there. 24 targeted individuals. eight members of the eastern ukraine breakaway separatist groups. officials. this list is what we expected. we didn't know the names on this. this isknew going into in a company whether it was defense or energy or banking sector that had more than 50% beership by the state would affected. not that much of a surprise. we have reaction from president

poroshenko. he is talking about the need for a closer alliance between ukraine and the european union. one interesting comment he made, he said as much of a challenge as they have in the fighting in eastern ukraine, corruption within ukraine is as big a challenge as well. be waiting for russian reaction. >> we will be. when i listen to some of the companies, i think oil. i don't think gas. we are hearing calls for eu russian gas talks for what could surprise.a winter >> we just heard from the parliament president. saying, the eu stance with ukraine. a solution.have his comments need to be siding

more with ukraine. is howllenge of the eu do they broker a deal between gas prom and ukraine without seeming to put their thumbs on the scale on the ukrainian side of the debate. be a challenge. as we get closer to winter, this will be more important. supplies tod poland. toand can't do reverse flows ukraine. they are going to be more reliant on russia. us is the cio of capital. listen to these sanctions. they smell a lot like the old sanctions. are you more concerned about russia does next? >> i am concerned about november and december when we really struggle to heat our houses

because gas bills have gone up. maybe not in the u.k. but austria as belgium, well. the countries are exposed to what russia decides to do. i am quite certain the russians are just buying time is. >> yesterday and finance minister talking about gdp being affected -0.1%. looking at right now? legs wildly optimistic. -- >> wildly optimistic. we continue to live in an environment in europe where growth is going to be low. still there, is and we will see a weaker euro. that is as certain as we can be.

it is a very simple analysis. try to find ao company with a percentage of exports as the revenue. the second thing is you need to make sure the companies are trading below averages. the third is to make sure they partner with companies whose earnings are related to growth in the country in which they operate. if they do that they will come up with a list of a few names. we are still in six-year highs. they will talk about valuations. they might tell you they look cheap. >> they cannot be cheap. how cheap can maybe if we come from financial repression. lowering the rates and make sure we owe the spectrum, and someone tells me they are seeing this to payi will be happy

him for dinner. that is not where value is. value, but youod will sacrifice liquidity. the best you can do is find stock values not very expensive. >> let's look at equities versus credit. left on the issuing five-year debt with the yield just over 5% . put equities against credit. >> credit looks very expensive. our relative equities look widely attractive. incredible lifelong opportunity against government bonds. maybe credit is a little bit richer than they should. it is all about the first four yield we will continue to see. i wouldn't say they should be turned on by the fact that equities are reasonably rich in

terms of historical averages. i think equities are still preferred. credit is opportunity but more related to financial bonds as opposed to corporate bond. >> short to medium term, what is the big lie? >> it would be to continue to partner with international institutions. it, is a system protecting and those bonds will continue to not only give the yield, but it is as good as you can get in the fixed income space. lookr as equities begin to at the emerging markets, it is probably deal me area you are finding some attractive value. they are very good cash generators. suffering a lot of normalization pains. valuations that

would make you salivate. >> i am going to watch you on the 18th if you are still celebrating. thank you for joining us. up next, a 1.25 onion dollar asset. we are alive with one of the top executives after the break. stay with us. we are back in two.

>> welcome back. it's time to bring you up to speed. british airways and easyjet may be among companies that an asset from a borough -- a vote to break up the united kingdom. the carrier makes a major dent in earnings. 2ey estimate the levy deters million visitors a year. the chief executive of air france sees the strike costing between 10 and 15 billion euros a day. they are currently in talks to avoid a strike between september 15 and september 18. yahoo! may have to pay fines if it cannot comply to the request to release data. a finere threatened with of $250,000 a day that would double each day they refused to give the data.

let's talk fashion. names are in london because of fashion week. they are showcasing digital the fashionlongside that fashion week. if you are looking at apple, we are seeing tech and fashion really going together, aren't we? >> you are right. we are starting to heat up. hopefully the entire fashion week is inside with a mirror. you can check yourself out before you go in. we have amanda weekly showing her latest designs. burberry.r very -- of course london is a help when it comes to fashion.

it wants to make itself a hub when it comes to fashion tech. you have fashion tech accelerators. one on the front row helped grow se.' it is not just about the new ipo . it is also how to make commerce more user-friendly. it is about giving you fashion trends. it is about 3-d printing. you can get shoes and tops that are 3-d printed. this is about innovation and how you tie that up. it could break up the barriers to make it more immediately accessible by everyone. >> over the next few days, give me some of the events i need to be watching. >> i think tune in on september

15 for burberry. it is going to be teaming up with twitter. they are helping twitter road test. you are going to be able to look .t a burberry tweet to.the females want you can immediately press the buy button, and you get nail polish. you might be able to buy the scent as well. you have top shop always pushing the boundary. sure, they are going to be on the runway, but later you get on facebook,fits and you can pre-order. you can go to top shop in london and prepurchase. they are talking about how digital is revolutionizing fashion trends. all about london fashion week and how it is pushing digital to fashionhe hub and

technology. back to you. sold the oiljust and gas arm. several assets involved. we are joined by statoil executive vice president. thank you for joining me. to what extent was this sale may necessary to slow capital spending? >> it is an important deal for us. it creates flexibility when it comes to capital to really realize the important projects we had internationally and within norway. it is an important deal that gives us flexibility. >> and your mind are the proceeds going to be pushed into , or do you view it into something else? >> this is going to provide

capital flexibility. it is an important part of our further invest ends, especially on the norwegian continental shelf, but also as a whole globally. >> tommy about russia. situation playn into any of this? >> no, i have no comments to russia in general. is no link whatsoever. this is an independent deal. it is a good deal, and we are happy about it. >> no comment on russia. there is a supply disruption, norway is in a terrific decision to use that as an opportunity, are they not? >> our mission is to be a reliable supplier of gas to europe, to our customers. we will continue to do so.

this deal really ties nicely as i would like to say. >> i want you to talk to me about what is going on with the price right now. the price of commodities seems to be trending lower. is that because the supply risk is easing, or in your mind is something happening with demand for these commodities at the moment? >> my comment is going up and down. i think it is a fluctuation. i do not see a lasting trend, but this is something we have to monitor closely going forward, and that is my comment to your question. >> thank you for joining us. a big deal for statoil. thank you for joining us this morning on that particular deal. thee nearly 30 minutes into

trading day. here is a picture of the markets. we did open higher. if you look at the ftse, we are still higher. let's dig a little bit deeper. with three stocks you should all be watching. >> for those of you listening on aveva.rg radio, it is it is a one billion pounds market cap. it looked great to bring you that kind of news. they put out a note. this was one of the top picks. how things change. to overweight.on from neutral. they say it is attractive. could be on the

upside. above their nearest the fta, that is the u.s. drug approval company, they have actually one bank the backing of the fda on a new injectable form of medicine for obesity. this of course is a medicine that they used to use for diabetes. a third of united states adult population is obese. this is a drug that could add $400 million a year. back to you. >> thanks very much, manus. here are three top headlines. the european union has expanded sanctions against russia by adding 15 countries -- companies and 24 people to its list. rosneft,includes

transneft and gazprom. the sanctions take effect today. japan will need a $47 billion fiscal stimulus package to whether another increase to its sales tax according to a bloomberg survey of economists. japan's finance minister has indicated the government will prepare a black up -- a backup plan to bolster the economy. gdp fell the most in five years after last quarter. nationalists appear to be losing ground in the polls after a new yougov poll shows them trading. showsey for the times support at 48% relative to 58%. or rather 52%. i will bring you the details. that does not add up to 100, does it? we are less than a week away

from the big vote. allen savidge joins us to weigh in. you signed an open letter for the independence campaign firmly stating, no. can you give us a little bit of a wide? >> i developed some business in 40 millionnding pounds worldwide. currency, aa stable good environment to develop business, lots of good people who we have trained to do good jobs, and the environment has been good. we have contributed a lot to the scottish economy. why would i want to see that change with the risk of going into a regime without a currency? rbsou have the likes of talking about relocating headquarters if we do get a yes vote. does that put a lot of description or is that a legal aspect?

is that just a legal thing or something that is quite a lot of work to do? >> you are just moving the nameplate. but they are going to accounts in sterling going forward. they are going to pay cooperation tax in the u.k. whatever business they do in scotland is going to be a paid cooperation tax in scotland, which just complicates things. it makes things more complicated than they need to be. says if we get a yes that westminster will have to change their line on sterling. >> i can see why the three top partiesthe political would come out and make a statement to say that you won't get the pound because of the risk that gives to the currency, and then reneged on that statement. entitledish voters are

to the facts. i think westminster is giving them the facts. they will not go back on their word. scotland will not get a pound backed by the bank of england. >> one thing i have heard is that independent scotland can tackle wealth inequality better than scotland as part of the united kingdom. joseph stiegler said pretty much the same thing to me. do you subscribe to that view? >> i think that is right. they have the basic rate of income tax for seven years but they haven't used that. they have got tools to control the economy that they have not used. i don't know why they have not used them. ofhink within a marketplace 65 million, they are much better to put the afford

unfairness in society write more quickly. >> this uncertainty we have seen over the last month or so has been incredible, particularly in the last two weeks. even if we get a no vote, what is the last thing hanging over all of this? >> it is split the country right down the middle to yes and no voters. that damage has got to be repaired. if it is a yes, we have to support that. if it is a no, equally we have to support that. the damage has been done. a lot of things have been said. i think the s&p's campaign, they tried to the emotional. pages that they wrote, with one page on finance, it is obvious which way they want you to vote. once you get emotion into this divide, there are problems. >> is that your experience?

the heart says yes, the mind says no, or is that just a little cold noise? >> i think you have got the hard lines in both camps and this middle down where people are undecided. they are not given the facts. there are 16 billion barrels down there. don't mislead the voter. let the voter have the facts and then decide. >> a final question, we get the results next friday morning, thursday night. possibly in money 17, we will have a referendum on the u.k.'s membership of the eu. if this is close, we could face another independence vote from scotland. close, that is entirely possible. sufficient to stop

this in its tracks. scotland, the whole economy has slowed down. jobs aren't being created. let's get away from this two years of debate and move on with life. thanks so much for joining us this morning. a man that runs an international company from scotland and his view is a firm no. up next, we speak to executives about europe and the undercover caddies trying to bring them down. we are "on the move." ♪

>> welcome back to "on the move ." uber has hit a speed bump. -- after ast frankfurt court ruled against the service, uber says it will appeal the ruling. we are joined by the man overseas, he is elliott gotkine he joins us from paris. you saidstion, i think yourself that germany is at the heart of a technology innovation within europe. in your mind, what is the problem in germany? >> i think we are observing an industry that has been protected

for a very long time and that for the first time is starting to see some competition emerging. of course you are referring to the court case, the company essentially suing uber. it is not something that should be surprising when you see that the market is so protected. butt might be protected, tell me how exposed you are to this market already. have fordrivers do you uber in germany right now? >> germany is a very big market for us. two types of services. peer offering and a licensed offering. at the moment, germany is one of the fastest growing countries in europe. >> can you give us the numbers on the amount of drivers you have got there right now? >> we are not being specific about drivers but i can confirm

that the product is getting traction from both the user side of things and the driver side. i encourage you to check the app and you will see the product is very reliable in most of the german cities where we are. >> next week, the frankfurt court here is your challenge to the german ban on the app. what do you expect to happen? >> first of all, let's be clear. the product is legal and is not banned. of course, we will continue to explore all the legal options and operate in those german cities. we are encouraged by the traction, the support, and i am expecting germany to the one of the countries that will start to embrace innovation and push some sort of a ridesharing scheme in the future. actually, the chance we have on the ground is pretty supportive in terms of the willingness to

embrace innovation. >> on the consumer side, you say there is a lot of people downloading the app. i want to talk drivers. a couple of drivers have been hauled into german courts recently. what is the legal risk here? if i am a driver in germany, i see a lot of headwinds. what is to make me sign up for uber? >> two things, the first one is opportunity see an with platforms like uber. we are talking about people that own their car, that pay 6000, 7000, 8000 euros a year for insurance and parking. platforms like uber are leading those drivers make a little bit of money. , you are referring to the legal situation in germany at the moment. all of itsas done in 200 cities across the world,

whatever happens in germany and elsewhere, i think they understand and are excited to take part in a revolution that will change the way people move around in cities. >> some people might be watching this now and thinking, you are being a little evasive about the amount of drivers in germany. can you respond to that and give us a number? thatat i can confirm is the news we are hearing now is generating a ton of applications from potential drivers. we receive hundreds of applications online since the news hit. traction andt of interest for products that are innovative and that are changing the way people move around in the city. >> applying to be a driver is different from being a driver. how many people are in cars right now if i download the app

and try to get a ride in frankfurt? how many drivers do you have in germany? >> what is important to us is that we have a service that is reliable enough for people to move around. if you open your app in berlin, in munich, you will see that you will find a car minutes away from you. that is what matters the most to us. i can't go any deeper in terms of the numbers. usthat is unfortunate for but thank you very much for joining us. to one of our top stories of the week. scottish independence vote approaches. many companies warn that a yes vote is bad for business. some threatening to relocate. at least twp companies will benefit. one is british airways, the other is easyjet. we are joined by kari lundgren. help me out here. i yes vote helps business? >> all the airlines definitely say the scottish voters should

do what is best for them. what the scottish national party has said is that if they become independent, they will scrap something called the air passenger duty. this is a tax. it is quite a significant tax. if you are a family of four, you have about 400 pounds added onto your ticket if you are leaving from the u.k. they will scrap this tax. they say this will mean an extra 2 million passengers a year to scotland. generally the airlines are in favor of scrapping this tax. they hate this tax. if scotland were independent and they did stop attacks, the airlines would be happy about it. >> are they happy about the strike in heathrow? >> strikes never make airlines happy. to some extent, this is a fairly limited strike. a little over 8000 baggage handlers at heathrow. this is going to be affecting terminals 1, 2 and three.

this company is one of eight and has a little over 1000 employees. it is going to be fairly limited. i spoke to heathrow this morning. they haven't had any disruption. it is not good in terms of the pr to have strikes coming about but at the same time, it can be fairly limited. >> where are we on the new runway? ceo feels like things are fairly positive. i was asking him how this compares to five years ago when you had david cameron flip-flopping on the issue. he said we are in a different place today. he was in china last week, in scotland the week before, talking about the regional connections you could have. at the same time, it is still very much with the whole scottish issue, in everyone's mind. you have to wonder if the whole heathrow debate, if scotland is become an independent country, whether that is going to create

the heathrow debate pushing off into the grass. >> thank you very much, kari lundgren. "the pulse" is coming up at the top of the hour. guy johnson joins us now from the newsroom. what have you got? >> scotland of course. if you are a small, medium-sized company, are you prepared for this? what kind of planning have you done? what are the things you should be thinking about? how big a risk are we running? all those are going to be things that i suspect a lot of bosses of a lot of businesses -- remember, 50% of scotland's employment is in the small and medium-sized sector. they are having to think about this. we are going to talk about it. we know what the polling is doing. it is too close to call. plan, ofto have an a the plan. all those things are going to be

things you have to think about. we have a couple of guests coming on. we are going to talk about sanctions as well. what kind of businesses will be exposed? the aviation sector could be another. we will talk about that. what kind of impact will this have on europe? the focus remains firmly on scotland. that is the biggest risk out there for the next week and a bit. >> absolutely. thanks very much, guy johnson. executive has reportedly had preliminary talks about the business according to a report. they had first expressed interest in the submarine and naval ships unit several weeks ago. a nii holdings plans to add risk to india to allow it to tap into south asian demand. the announcement comes less than two weeks after india's prime minister visited japan to expand

trade. the chief executive of air france sees an upcoming strike costing the company between 10 million and 15 million euros a day. the ceo said air france is currently in talks with unions to avoid a strike planned for september 15. 8:50 here in london. 10 minutes left of." -- 10 minutes left of "on the move." coming up, a look at hong kong's horseracing market. stay tuned for that. ♪

onthey are off, they will be sunday in hong kong's lucrative horseracing season. the stakes have never been higher with potential prize money up to 10% higher this year. john dawson hid the stables for the inside track on one of hong kong's top trainers. year ofand the 140th asia's oldest event. the hong kong derby. owner pan went to the tsu tong, yet behind the success is richard gibson. in only his second year in hong kong as trainer, gibson won the derby and the hong kong cup. now entering his fourth season, gibson has racked up 102 wins. he learned the ropes in france,

mucking out stables. >> when you look at a horse, what are you looking at? >> how do you think they are going to adapt to the hong kong environment? you are looking at the shape of the horse, its aptitude to fast-track. you know a horse is going to be ready for the race? abnormalities. heavy sweating or very nervous in the paddock, that is a huge negative. >> why did you pick hong kong? >> if you are going to train racehorses, this is where you want to be. you have maybe 100,000 people coming to the races every day. you have a population unique in the world where they are passionate and knowledgeable about horseracing. you have got some of the best jockeys in the world and some of

the best trainers in the world. >> out of all these horses, which ones are the champions? >> this is one of our up and coming stars. this is a lovely horse we got from australia. he has raced four times. he won three of them. our up definitely one of and coming favorites. stable is inbson's very good condition indeed. can he repeat the glory of 2013 when he won the derby? john dawson, bloomberg television. stake on theney at betting tables in hong kong. here is a picture of the markets. almost an hour into equity markets trading. ftse 100 up 0.1%. cac 40 and the dax showing weakness.

ftse, you could call it largely flat. the stoxx 600 lower. check out the pound. 1.6259. another poll, a new result. 48% say yes to independence. 52% say no. the pound slides higher. micex, the russian equity benchmark. that is where there are new eu sanctions. it is up almost 1%. the new sanctions affect rosneft, transneft, gazprom. they will be banned from tapping the eu markets for new capital. this has a lot to do with oil and not a lot to do with gas. if you are wondering why, the eu gets their gas from russia. everybody concerned about what russia might do next. retaliation and the lot. if you want to talk about that, i am on twitter. guy johnson is next with "the pulse." that is it for me.

happy friday. have a good weekend. ♪

>> russia sanctioned again. the eu expands penalties against moscow and effective immediately. losing momentum. the latest polling puts the no votes ahead in scotland by a whisker. and the digital catwalk. we are live at london fashion week to see how brands from burberry to top shop are embracing technology. good morning, everybody. you are watching "the pulse."