painful divorce if rockland votes to go the same way. >> we are focusing on technology. we spoke to the creative director. again extolling the withes of experimenting twitter. once again, the stock rice is likely to take a pounding. is likely to take a pounding. >> we are talking netflix. it is finally coming to germany.

it is making its appearance on the southern part of the continent. can netflix continue to grow? they won 80% of revenue to come from outside of the u.s. we will have more in just a bit. but that is what we are watching. -- in8 a.m. and the u.k. the u.k. futures are pretty much dead flat. headline risk is what you have to look at. we have got that independence referendum really going to take the headlines. markether it is the bond or the stock market, we are going to keep close attention this morning. the ftse 100 seems to be slightly lower at the moment.

we are waiting to see how the market continues to react. the are pleading with investor base and the voters. this is going to be difficult. the market is cautious. we are seeing growing cost rising for the united kingdom. many are thinking if we do see a thursday we could to anrrowing costs lead eight-month high. burrowing is going to become higher. a are losing 9% of their economy. costs going into germany as well. 1%. let's haveve

a look at currencies. this is a site for sore eyes. we are looking at the pound versus the dollar. we are off by a third of a percentage point. if you look at the past month, down 3%. many having to work out how that would happen. we are less likely to see an increase in interest rate. that makes the pound far less attract if. a check on some equities. it might be a little bit delayed. stock topecting this fall by 10% this morning. clarity on the terrible june.

million covered in insurance. they are having to invest in this company. as ayear is likely to see molar amount in profit to this year. the market was expecting it to pick up. that is going to focus the analyst. they are likely to downgrade -- toas the mid-. downgrade your estimate. orange is down. is up 6%.-- jazztel beingabout the company able to offer the three wonders. you are able to get your phone, broadband, and television. >> a big move. we are opening down by about a

10th of 1%. let's get some real --son active on the market real perspective on the market. he oversees hundred them in the euros --os -- billion assets. justos in getting to the back of this year, we are up 7%. you are at the five percent mark. do i need to start getting ready to those returns? >> absolutely. that is what we have been saying in the last three years. we were proven wrong with return beating expectations. valuations were richer than they were. with financial repression still

fully affecting the financial markets, and interest rates have got more negative in the past the month than in the last two or three years. to lowero get used returns. >> where is he putting his honey -- money to be more active? x we said evidence docs are good value -- dividend stocks are good value. as mr. druggie fully implemented druggie -- is -- mr. fully implemented his policies. interest rates are going to remain relatively be nine. -- the nine -- benign. we think long-term investment is currenciesant. local

have dropped. asked thatr hand, we the dollar to appreciate -- expect the dollar to appreciate. dozier,get that fixed think that is going to suffocate the inflation. >> i think the markets have positioned themselves. the first shock was the biggest. we have had the mullahs one at the beginning of this year. >> we are going to talk about scotland after the break. the ftse might be down by a couple of tenths of 1%. myth.were a they have come out with pretax

profit for the year to be at a similar level to last year. translate. no growth. we are going to be back in two minutes. we will talk about scotland. stay with us.

>> welcome back. we are live in london. it is 8:10, and we are almost 48 hours away from when garbage

voters head to the polls -- scottish voters head to the polls to decide whether to become an independent union. ed miliband is expected to do the same ring. joining us is alan offered. -- crawford. let's talk about the speech delivered yesterday. cameron speech. how did that go down with voters? >> it was an extremely heartfelt plea. it is hard to think back when i have seen the are are give such a strong, impassioned message to voters. pleading withvely scottish voters to stay with the union. he also labeled a certain amount would the saying this no trial separation. it would be a painful divorce.

heart the speech was impassioned. he even at one point said, if you don't like this government, it won't be here forever. if you don't like me, i won't be here forever. he was trying to get ahead and the hearts of the scottish voters. >> a lot of people are thinking, why did this take so long? give me an idea of the campaign trail. >> people are incredibly engaged. i have never seen anything like this. this.ne is talking about it's the only conversation there is in the capital of edinburg. i was witnessing mall groups as -- discussing this

. it is very piece all. .- peaceful people are incredibly engaged. that would mean is hard to predict. we know the turnout is predicted to be extremely high, which a dds a complication. >> think you very much. i huge week for the united kingdom and the very big week for scotland. is, as ant to gauge cio, you look at this independent vote, and have you changed the way you look at u.k. assets? >> absolutely. the risks will have gone up.

yields, herek at is the question. let the we get a yes. -- let say we get a yes. yields higher.ut they could be lower. ask the bank of england is independent and has shown it can expand it balance sheet at will. i think it will be under control. sterling will weaken. >> it is a political ramifications that is extremely complex. the follow could be explosive hen you look at europe. you have talked about european leaders doing something similar to japan. recoverying about the

that speaks to the unemployed in spain. if we don't address this are we going to get a similar movement in spain? >> absolutely. this comes at the worst possible time. we need everyone focused on is the tenable recovery. recovery.able we have a lot of energy wasted on these types of discussions. like could spread wildfire. we have heard rumblings in northern italy. spain. we don't need those types of distractions in europe. scotland, yes vote in leavings of the u.k. increase, and that is not good for european asset. >> what do you want to see european leaders do?

draghi has done his bit. what next? >> invested infrastructure. this is the thing -- something every country can afford. .t differs from social benefits that needs to be done in .ddition to structural reforms >> looking at the fixed income ?arket, how do you invest it spain is down 4%. it can't continue forever. >> while there is no bubble, the definition would he leverage. are manipulated. insurance companies match liabilities with such assets and are forced to buy negative real , as an investor you need

is a away from that. market onstar equities equities. >> is that the more risk on the books? a thesis to be buying european equities? >> that is a thesis, but there are other risks out there. take infrastructure. ,hey carry a liquidity premium and there is the time value. spread for the investors that need to match long-term asset. >> you are an investor. for the guys investing in short-term, what is the big risk over the next few months as

-- next few months? >> i think the fed dominate everything. if anything the central bank is going to surprise on the dumbest side -- dovish side. i think the biggest risk is earnings. leaving geopolitics aside, earnings are going to determine how stocks do. there is going to be quite a bit of differentiation. >> which ones do you like the most? >> tech. we like companies that have a growth profile that are able to sustain dividends. >> things for joining us. thanks for joining us.

check out these stocks on the move. $3.4 billion is a offer. $13 a share. up express said. -- is up 6%. up next we are going to talk about netflix streaming across europe. stay with us. in two.move" is back

>> welcome back. just coming up to 8:25 in the u.k. the chief executive will step down once the 2016 account are approved. they are appointing a new management team, which includes the board member stepping down. the fastest growth in more than two years. conoco phillips is reportedly optioning a stake in the uk's largest oilfield. the u.k. company is hard rest is

elliott dakin the oilfield -- hard-pressed to sell a stake in the oilfield. the future of north sea oil is under intense scrutiny as scottish independence plays out in the u.k. orange is offering 3.4 billion euros in cash for this -- broadband provider jazztel. about 1.5 give orange million prescribers. subscribers. we will have more later. >> another company we are watching is netflix. expanded to six new market. they face regulatory hurdles companies.media

>> technically i haven't been able to watch it. germany will be one of the new countries. they are getting a be million broadband households. -- 80 million broadband households. household million that are broadband connected. a unfittings said it is to get into these markets, but they are taking a long view. keep hitting more content nd more content. >> it is worth remembering this is a country with phenomenal their. in terms of

strategies they want to get out wide of the united dates. -- states. they have 50 million subscribers. they want to branch out. they have to go to different market. the problem is you don't have the life thing agreement. here is reed hastings again. >> we are licensing local content. there is a family struggle. >> the goal is to have 80% of revenue outside the u.s. say 20% of the revenue will come from europe.

is going to be asking, will i be able to watch house of hard in germany -- house of cards in germany? >> no, it has already been .icensed to sky deutschland if you want to get it you have to trick your network. pretend .ou are in the date -- states many foreigners living in germany have in doing that. there is still a challenge with some of the shows. >> great work. 24%.ng at the stock up i will show you what a bad year looks like. the stock down 12% now. we're going to talk about what is kind the move lower after the

break. ♪

>> welcome back to to "on the move." your tradingto day. and this is what the markets look like. down across the board. lower on the dax as well. .25% today. the scottish independence i know one man who will be watching that closely. >> 17% up yesterday after rising. it has been confirmed that orange is buying the spanish broadband carrier. the price is 3.5 billion euros.

paying 13 euros for each jazztel share. that is a premium. buying this company will give million broadband subscribers to help it bolster its tv, and wireless packages. happen when the company's accounts in 2015 are approved. it has been in the offing, some would say i'm a after the proposed merger fell apart in may because of clashes between the two executives about how to run the company. os, i'm not going to steal the thunder, but there shells

thereby 12%. it has been a horrible year if you are a share price owner of this company. it has been a great decade though. these are the three headlines. u.k. prime minister david cameron made his final lee to scottish voters urging them not to leave the u.k.. he promised change. >> at the end of the day, all the arguments can be reduced to a single fact. we are better together. as you reach your final don't letplease, anyone tell you you can't be a proud scot and a proud brit. >> that is one side of the debate. on the other side, scotland's first minister says cameron is

scaremongering. the ukraine and pro-russian separatists are trading allegations. the truce was signed a letter in days ago and looks nothing like one. separatist authorities this beaut the claim. countries have begun military exercises in the ukraine. facing ah president vote of confidence in parliament and may go into legislative elections. his approval rating hovering around 13% which is the lowest since the current constitution was put in place. i waited back to asos now. the company says earnings will stay unchanged from the year before. correspondent,ss

looking at this, i said to you earlier, is down 10%. why? >> a brutal day once again. it seems to be about the full year 2015. this year we got four quarter updates and sales up 15%. that was the estimate. the u.k. seems to be standing out there in 33% increase in terms of sales. they're still adding more customers. the problem is a are having to invest a lot at the moment. they have to improve their inventory, their infrastructure. the way you do that is you sacrifice profits. 2015 profits will be flat compared to this year. analysts thought they would rise by 30%. that is why you're seeing all these downgrades from analysts. the share price is likely to continue to pummel. -- tumble. they had a fire in their

distribution center. 20% of the goods were ruined by the sprinklers and the fire. they couldn't make the orders. this has been a torrid june. at the share price, two thirds wiped off year to date. that is 3 billion pounds lost in the market capitalization. that is brutal if you are an investor. >> the action in the stock market is brutal as well. what are analysts saying about next year? many analystsly, have said this company is still a by going forward. the share price dip is already up why 60%. many have said this company still provides a tying opportunity. this is a long time that. over the last decade it has had a phenomenal ride. up 1000%.

this is a company investing for its future. that means in the short term we will not see a 30% uptick. it will seem flat at 45 million pounds for the next year. the chief executive keep saying, bear with us. this is a company that needs its place and action. is a phenomenal company to go and look at. it has been what many companies look to to see how you managed to to get this quick turnaround. the next say in your home you tried on and look it back sash -- send it back. they have been on the edge of e-commerce. they have tailored themselves to the chinese as well. an incredible way that they have made it for each country. it is a long-term bet.

next year they won't see much improvement. huge backslapping morning. down 12%. the founding director at needs capital ewings us. -- joins us. .> this stock is down 17% will we get back to those highs again? >> in some ways this is a speed bump in the road and in some ways this is reality checking in. this back is some of these internet stocks that have done well have come from a good place but have had unrealistic expectations. part of this as caroline said they are and investing in the future, what part of it is sadly that competition always finds a way. the online space for clothing is more crowded than it used to be. the traditional players are fighting back. you have lots of internet your

plays as well. asosa sauce has found -- has found, and in the u.k., is that it takes a lot of money internationally to build the awareness you have in the u.k.. you have to build your awareness. against you, your products become expensive. you have to invest behind reising and promotions to build that awareness. more recently they realized that shipping is an issue. they used to have free shipping , that cost money. they have to build up shipping costs. a lot of it is realizing that the margin they had is not really as rosie. bitt has come back a little since a last quarter. let's talk about shipping. when i was a student i would shop on this website all of the time.

because shipping was free and so were returns. how much is it a game changer to charge for this? we need to see what happens overseas with these charges. there is a huge psychology behind this. people are willing to accept a price increase in return for free shipping. people love free shipping in america, here or anywhere. it is a game changer. we are talking 15 quit in the u.k. or 25 euros. it is not a huge by but something to watch. consumers don't like aim for shipping. , one thing you have seen with this business, with the internet it is so easy to i something that it doesn't fit and you send it back. intohas to be incorporated the market structure of a clothing retailer. these online retailers are a lower margin than in-store

retailers. yet their returns tend to be twice as high as in-store. the margin structure needs to incorporate that and i don't think it does. >> consumers don't like shipping fees. investors do not like an outlook that shows profits flat on the year. how do they turn this around? >> the key question has to be if we can get convinced that the large part of today has to do with internal investments to get their awareness up. trueis the first really that has online brand built a profile in america and europe. if they can convince you that the pricing issues have to do with sterling and to accelerate awareness in overseas markets, there is a lot of hope there. my concern is that this speaks at this stage to catching up to

the fact that prices have gotten out of kilter, awareness isn't as rate, and other things are dated. heavily investing the business to grow the scope. be reinvesting to re-accelerate and give more momentum. it seems more defensive. >> this is one side of the market. we will talk about burberry. the fan showcased its latest look on london fashion week. it was the first show with its new ceo. mr. christopher bailey. isasked of his major concern taking risks on the runway or bottom line? >> the two are indistinguishable. the key issues that we move forward and do new things and have innovation. and we create something we our customersthat

get excited and inspired. >> is the pressure growing? >> it is always a thing. the runway is something where you have 12 minutes to inspire people. sometimes that means you might do something unexpected and other times the feeling in the world means you want to do something more familiar. this business is about feeling and emotion and that has to turn into something tangible. >> which is what? >> emotion that turns into something tangible. >> technology are doing something here. twitter and instagram. is it turning into an arms race? are you becoming better known for technology? >> it is indistinguishable today. a company can't just live in a middle sideload world.

technology is hugely important that as his music and craftsmanship. it is really about being curious as an organization in making sure that things are happening and that you you play and experiment and build partnerships. that can sometimes be with craftspeople, it can sometimes be with technology. raul is still with us. you listen to christopher bailey there. is it too early to assess his performance in that role during -- role? >> i think it is. there is quite a lot for one person to do here in terms -- and that judgment really comes nine months down the road when we definitively have only his imprint on the business. >> his welcome wasn't particularly welcoming.

investors added by rejecting his pay. he doubled sales in eight years. them to doct anything near that performance? i think it was largely a brand that was taken from to the highest echelons of luxury and that itself involved both repositioning the brand and the whole technology thing needs to be celebrated. compared to everyone else and luxury they are light years apart in terms of social media and their own website. repositionedly this brand to a much longer -- younger luxury consumer just something other brands struggle with. there is still a lot of good work to be done. luxury is a growth market. it more than any other time, is harder to keep on top because the consumer is changing. >> final question.

burberry, two different companies, which would you rather hold? >> i like burberry. consumers are looking for exclusivity and newness. what you're seeing with burberry is they are delivering more newness technology and i think as a result the end customer is much more protected. and much competition more product competition. whenll believe the answer i see it. thank you for joining us. next on "on the move." a telecom tie up. what could be orange must exist acquisition. ♪ >> we are watching two telecoms

this morning because france's orange has made a 3.5 billion euro acquisition. up 6%. let's bring in the man who knows the deal. matt campbell. telecome after a company or a little bit of spain? >> it is really old. one is fixed mobile convergence. everyone with a cellular network

once increasingly a fixed line network. it helps you sell quadruple play packages and because you can back all your data that requires expensive over the air infrastructure down into the ground which makes it cheaper. spain is rebounding, it is one of the fast growing economies in europe and orange wants to increase its bid. >> orange down a little bit today. selling 2 billion euros in equity and they will issue hybrid debt. this is a bit more than was expected in terms of the capital aree, the orange's shares only down a bit. it seems like investors are willing to support this growth. theaw that with anglo gold other day that unexpected capital rates can turn investors away. >> perhaps referred -- certain

few of those companies it has been a long time coming. and telecom we have seen this a lot in the last 12 months. m&a to come even though we have seen so much? think we have seen less consolidation on the mobile side which is what everyone expected, as relative to convergence between six and mobile. we have seen convergence by vodafone in germany and spain. we may see something in the u.k.. between that angle and the general trend of consolidation which everyone does expect will come through, it will remain a busy sector. >> can it get the job done? >> i think it looks like it will. the chairman has already contributed his share to the deal, so we will have to see. the shares are trading just below the price currently. 12.78 since you and i spoke.

as we had to the break, here is the market 50 minutes into trading. a little low when we opened and lower now. the federal reserve kicks off their two day meeting today. everyone looking for the outcome of that scottish independence referendum that takes place thursday. we will wake up friday morning and tell you everything you need to know. ♪ >> we are two days away from

scotland's independence referendum. we started the day below one dollar -- $1.62. we had a big debate on this particular issue over sterling. the other has been over oil. country has an impressive record. tom gibson reports. with vast expanses of wind lashed and sparsely populated high lens, it is no surprise scotland is waving the flag for wind power. renewable energy comprises

almost half of scotland's of electricity. they wanted to reach 100% by 2020. ey, that is orkn already the case. they produce more than they can use. energy waswhen wave in the national grid, it was the first time it had been done anywhere in the world during this is turning seawater into electricity. europeans art of the marine energy center. they're trying to develop the marine devices of the future. there are good reasons to invest. some think that a fifth of the u.k. energy can come from the sea. the device is varied. some on the surface, others rock back-and-forth on the seabed. on another part of the island, conditions are suited for tidal devices.

these make use of currents. advantages,have they can be costly to repair. this device is a floating turbine. it harnesses tidal currents near the surface. these repairs we can do at sea because it is floating and the vast majority of electrical components are in the aole and can be accessed by hatch. eight timesenerate as much out put. making it the most powerful marine turbine device in the world. whether scotland makes the most of the disputed north sea oil, the revolutions in eternity of energy are second to none. independence threatens to discourage arena investment. it might not be when these devices will power the world to

whether they will still be in scotland. tom gibson, bloomberg. >> scotland still dominating the headlines. that is it for "on the move." ♪ .

>> a week from hell for salmond and cameron. britain's prime minister makes a last-ditch plea. tech.n meets -- the crate of kforce new creative a force in charge of burberry. >> it has to turn into something else. and failing to boost of the online sells. asos tumble. ♪