pimco. they have a $23.5 billion problem. fell from uch it the return fund last month. many expect the withdrawals to continue following the depart cher of bill gross. ftse down .2%. dax down .3%. anus cranny has the open for us at the touch screen. >> you're right. that is the critical part of the agenda. european equities. the futures indicate a lower opening. he u.k. down for a fourth day. we'll look at the construction purchasers managing index.

> treasuries are rising. let's refresh your memory about hat is going on. .6%. the s&p was down 1.3%. european equities are declining. let's see what is actually going on. tui travels. we spoke with the c.e.o. he said we're raising our guidance for the rest of the year. operating profit will rise by 9%. due to a good summer and high season and strong late bookings. let's take you into the three stocks to watch. oil up here. oil really is beginning to come under pressure.

phillips is down. the light making company and healthcare company. they have been fined $466 million for pat ept in fringement on a fingerprint technology that takes the oxygen in your blood. that's what they will have to pay the penalty for. crude oil. black gold. $90.71. at a 17-month low. you're looking at the strength of the dollar. you're seeing pumping, pumping. they have oil in saudi arabia. they are pumping it quicker than you can eat cupcakes. they sell it to the asians at 2008 prices. they are battering the price down. it is going to be an

interesting quarter as we go into the winter season in terms of crude. we'll see how that plays out as the quarter continues. in terms of the bond market, it is going to be one of those prophetic moments of what happens in a bond market. y draghi and his cohorts are -- we had a conversation with j.p. morgan, an asset manager. they said get ready for the spread between germany and spain. big day for the e.c.b. >> very big day. going to bring you spanish jobless claims. -- 19,720.

gleths some insight and perspective on this and the market. thanks for joining us today. feels like a high -- when you come out and indicate you want your balance sheet up by a trillion euros. >> i suspect he is not as you have said -- i think he will scope out the asset backed security program. people have talked with 400 billion plus you know. i think if he can get something along those lines moving then the market will be satisfied. what is important is to keep momentum downward on the euro and trying to get some inflation into the system in europe. last night when draghi spoke he was talking about lack of

demand and about lackluster growth across the whole euro-zone region. >> we seem to be on a one-way train to $1.20. when you look at the fx move and what's happening with dollar-yen, how much of a difference will it make? >> not a lot. the travel is downward for the euro and upward for the dollar. that's going to unwind over the next 12-18 months. those not a short-term fix. >> the nikkei took some pain overnight. around about 2%. you still like japan he is in equities. >> i do. a number of commentators will it will you the market is divided on this. you're either a japanese bull or bear. we have been pretty optimistic

about what he can do over the remainder of his term, which is about 2 1/2 years in terms of structural reform. you have to appreciate this is not something that will be fixed overnight. you're changing the habit of a generation. implementing structural reform, the workplace is going to take a while. the results probably won't be seen immediately. >> what we have seen in the shape of reform in the global politics is when the going to gets tough, you move back. am i betting on japanese corporates, abe or the bank of jab? >> i think you're backing abe and the exporters with the yen. it has to be good news for them. they can obviously capitalize on the weaker yen and boost profitability. these companies have been performing reasonably well anyway against the much

stronger yen. we're talking about international companies. well recognized throughout the globe. is not as though you're looking at small companies that might struggle in the current environment. >> we'll get some of these stock picks. just want to have a look at equity markets. this is where they are now. ftse 100 down .2%. the dax down 0.6%. euro $similar below 1.26. september 2012 lows. of course the big meeting at the e.c.b. today down in the south of italy. the question has to be asked. how much of it will -- we have full deproverple the paris motor show today with some of the top names. b.m.w.'s head of sales and audi's chief executive. they will join us this hour. if you want to talk markets,

you know where i am. 2013 at ferro tv. move move is back in two. stay with us.

>> welcome back to "on the move." we stream everything. over to paris now.

the world's top auto execs gather for the world's motor show. b.m. swmbings unveiling their latest models. hans nichols is on the grounds with more. hans, enjoying yourself? >> jon. we are having fun. how can you not have fun with all of these beautiful cars. beautiful other things. we won't talk about that because it is a family program. we have what can ornl be called a sexy carbine us. tell us about it. >> a con vertable. the latest edition of the 2 series. exciting product for a lot of people buying a b.m.w. for a long time. we're excited about it. we'll be able to update the navigation system over the air. no disks. no plug in anymore.

all done remotely. lots of elements to it apart from sheer driving pleasure. >> as easy as download ing something from itunes. it is not going to handle too well when i take the family skiing. >> rear wheel drive. winter tires. you have a great product. for anybody who wants to go through the deepest snow. problem. >> talk about your new vehicle. you're unveiling it here. tell me about the car. >> this is the second generation made in the u.s. that's our largest one. enroute to over 400,000 products this year. 260,000 in the first generation. i can think back to when we launched that car. ed really -- it

is strong and powerful. is it a bit polarizing? 260,000 sold. lot borlede and stronger. more versatile. with in -- the big engine the s 6. great car. i drive one myself. >> what is it going to be priced at? >> over the x 5. it is worth it. >> when we talk about pricing, tell us about headwinds. are you having a hard time with pricing? >> we have balance. we don't have too much of our business in asia. we don't have too much in the united states. pretty good recovery. the u.k. has been strong this year. germany is flat lining but at a high level. the market is probably going to hit 3 million again during 2014. the u.s. is strong. i think we see confidence in

the consumer. across the u.s. it is not just local ized to the southeast or northwest. all in all. china is definitely maturing. we're having a growth around 20%. more than expected. i think we'll start to see that normalize over the month ahead. it will slow somewhat. >> margins are operation -- >> the margins in europe of course being under pressure in the last couple of a years. e are seeing recovery. what we want to see now is good recovery. when i look at spain, this is a total market of 1.7 million in 2008. it got down to 500,000. it is growing but growing at a small base. all in all, the market is recovering. it will take more time.

>> when you talk about getting back to prerecession levels? >> the story is -- this year the united states will be back to precrisis levels. in europe, we're probably 2 1/2-3 years away interest back to precrisis levels. it is not an even development. the south is recovering strong. the north didn't reduce so much but it is growing slower. we see more time to go yet. >> how is russia impacting this? >> we have had good sales in russia. 40,000 last year. the first six months of the year, where we expected them to be. we have seen it slowing somewhat. the issues in the economy are at the heart of that. russia is a market for the future. over the midterm recovery will definitely come there. we have investments there.

we manufacture about 20,000 cars a year there. big cars. xl's, into the future i'm sure the recovery will come. the political situation the politicians need to sort out. >> optimism from you. i'm going to ask the cameraman to pan over to the new mini. this is your vehicle, mr. ferro. that has your name written all over it. we'll swap the steering wheel around so you can park it in the u.k.. >> i can't even afford the mini. we'll leave it there. enjoy yourself. stay with bloomberg throughout the day. next up this hour, bloomberg's first interview with the c.e.o. of b.m.w.'s rival for the top spot in the luxury segment. that is audi's c.e.o. c.e.o. th us now, the

of r.t.a. bun's. -- of rathbun's. the glitz and glamour of paris. you unveil these shiny new products. a little too excited and optimistic about a recovery here? >> i believe we are. we talked about european growth. i think that anybody, teen optimists will tell you you won't see strong european growth. or a pickup in consumer confidence. the asian market has flattened out. china is softer. that has been a big area of growth for these car manufacturers. you have companies that have missive investments in equipment. competitive industry. low margins. trying to re-invent themselves. that's why i don't like them. >> you like aberdeen asset

management. down over 20% this year so far before we open up trading today. why do you like? >> i believe you're in a very interesting period. in gilbert has done a good job over the years. he has a good history in consolidation and restructuring businesses. i think we shouldn't underestimate -- he can get out of the acquisition. the market has itself very depressed because of their big exposure to the asian markets. the outflows have been stemmed from 8 billion to close to just under two. we're seeing an improvement across that area as well. people looking at value coming back towards the emerging market.

restructuring and perhaps global growth. >> one final question. pimco. big outflows in september from the fund that bill gross managed. does that necessarily mean those positions have to be liquidated? >> i think it depends -- we were chatting about this during the break. some went in there as passive investors. some were backing bill gross. we'll have to see how that pans out. there has been much chatter about this. there will be some liquid positions that will pus pressure on fixed income markets in some areas. >> something to watch. we have to leave it there. thank you very much for joining us this morning. as we head to the break, let's check in on equity markets in europe. we opened lower. .5 on the dax. almost 60 points lower.

coming up, we'll talk about germany. rocket internet launches its share sale. who writes this stuff? trading on the frankfurt exchange after pricing in the top of the range. will the markets agree with that 6.7 billion euro evaluation? we'll discuss that next. stay with us on "on the move." ♪

>> welcome back to "on the move." i'm jonathan ferro.

richard branson plans to raise 150 pounds in a london i.p.o. is the latest u.k. lender challenging the bank with a share sale. the largest bank in saudi arabia will raise about $6 billion in its i.p.o. starting this month. national commercial bank will hold the second biggest share tale this year trailing only alibaba. they will also be the largest ever in the middle east. and staying with the middle east. shares jumped as much as 20% in dubai in their first day of trading. more than 20 times oversubscribed by individuals. the company's parent group, to properties plans to

trade next. >> completing the biggest german i.p.o. since 2007. caroline hyde has the story. we have an opening in price. share price is falling. >> yeah. if it falls, many would not be surprised. it doubled the amount it was targeting. raised 1.6 billion euros. double where they initially started marketing to investors. top of the range, 42.50. doubling the amount is quite greedy. maybe we will see a little bit of weakness in the share price hen it trades today. help investors earn money and cash in and put money into other tech companies. we're hoping if this sale goes well, you have today in excess of 1.4 billion euros coming from rocket internet.

could that mean sound cloud in berlin raises money? mind candy could start giving money back to investors and plug it in to the new start-ups. we need more billionaires in europe. more risk take rs. that will make us more competitive against silicon valley. >> the accusation that rocket has been greedy is is not going to do anyone any favors. you leave money on the table. doesn't look like they have. >> alibaba was clever at whetting the appetite. they didn't go for the top range. they kept it under wraps. they saw a 30% surge in the share price on the first day. that is clever maneuvering. this is a company that is fascinating when you look at the opportunities in the emerging market. what everyone says about robert internet, these three brothers, oliver is the front man basically, the middle brother.

people say you're copy cats. they started in 1999 and looked at ebay and stayed in a one bedroom flat for three years in valley and ilicon they copied companies with the likes of uber and pinterest. it is about being excellent in the emerging markets. these companies are a stallwort for the united states. they have not taken on emerging markets. they are worried about smart phone and internet penetration. they said i didn't come one the greatest idea. what makes me great is i can be brilliant. groupon they copied. groupon had to buy the copies and the heads of groupon said these guys are like none other. they are inhuman m >> if you don't do it first, do it better. check out the recent movement

in euro/dollar. yesterday we dropped below 1.26. it is e.c.b. day. up next, we'll break down everything you need to know at today's press conference. stay with us. we're back in two. ♪

>> welcome back. trading.s into this is how things are trading -- shaping up. the dax down by 0.54%. 2.6%.kkei falling by i see three stocks with grain. -- with green. >> i thought i would be contrarian. shares are rising, up by 1.7%. the company raised its guidance. .perating profit will rise

geopolitical tensions in places like egypt, russia, ukraine. startmpany says a strong to public bookings for 2015. the company last night announced it will buy back shares, 6.9 million shares, 10% of its share capital. ophir energy is an oil and gas exploration company based in london, but it's businesses based in africa.

bg operates the license for this well. up we doompany come not talk about a lot, up by 1.2% -- smaller company, we do not talk about a lot. 1.2%. , that is afters fund manager bill gross unexpectedly quit after 43 years. argentina central bank president has quit. he resigned less than 24 hours after the argentine president publicly criticize the institution for allegedly leaking inside information. securities regulator will be nominated as replacement.

ecb president mario draghi is expected to underline the banks willingness to employ more economic stimulus measures today. investors will be looking for details of the asset backed securities purchase plan. not sure they can go any lower from here. the ecbnomists expect to provide details on their asset backed securities program as mario draghi's effort. our next guest says it is hard to see how this program could amount to more than 250 billion euros over the next three years. .e joins us thank you for joining us this morning. i know it is very complex, but from what you are seeing, tell me how much the ecb can actually

buy. >> so many numbers. when we talk about what investors have as potential holdings, another sort of 450 billion which is created and posted to the ecb for funding purposes. >> where are we began you'll issuance? -- with the annual issuance? >> in the eurozone, the ecb is the main concern. very hard to get to those trillion euros numbers. >> a debate over the quality of assets. there is been a report about greek assets being brought as

well. the expected of -- the executive board presented that to the governing council of the ecb. is that a big deal? >> they're currently being posted by the liquidity lines into the ecb. there is no real change. that wheno remember you're sitting around the room with the central bank governors, it has to include all voices. all voices out to vote for the proposals. taking the greek bonds, adding a couple of billion to the double digits, but will not the needle -- will not move the needle in the macro picture. >> is it just symbolic than? >> it is important to include

everything around the table. if you think about the most dislocated markets in the eurozone, the greek market will be number one. isluding them from a scheme taking things too far. including them allows them to benefit the most. >> they include greece, cyprus. i was looking at one of your notes and it was distributed market, tim .3 billion -- 10.3 billion. there is nothing here. are we going to help the sme segment?

commentators like myself said, that is a great sentiment, but what we're talking about is commencing a market rather than restarting it. since then, we have had this mission creep. .hat is the main driver if you speak to any rational treasurer, he or she will tell you that their job is to find the cheapest possible way. easier.tool is much -- you can help the sme market. assets.art buying greek securities backed by residential loans. i am looking over at spain. risknot putting a lot of on the ecb balance sheet?

-- senior bonds have an attachment point ranging between 15 or 20%. you need 25% of loans to go wrong before you face losses. you are so far out of the danger zone in terms of the senior bonds. they are very familiar with them. it is not that -- he has been very clear. he is hedging himself. in --l not be stepping third-party investors. >> what are they worried about? >> this is a new development.

it really is new territory rather than anything different to any other central banks. similar schemes out of the u.k. and the u.s. as well. >> i want to play devil's advocate. why does it matter if the ecb assumes risk on its balance sheet with riskier assets when it is a central bank and they can print money? of --gives us some degree it gives us some degree of rehabilitation. the product has been disparaged because of the u.s. experience. equivalent escapes that kind of tarnished. the ecb's involvement in the asset class is a boost.

in terms of the ecb taking on additional risk, as the central bank, you're one of the most conservative institutions in the financial system. >> one of the most conservative central banks in the central bank world. when the press conference starts, what are you looking for? >> a little bit more information about abs. it would be very doubtful to see any meaningful number put on the program. i did not think we will have a handle on the exact number. >> is the bar too high today? >> the abs bar has been raised extremely high. >> we will get you back. thank you very much for joining us.

we will bring you the ecb president's news conference from naples today. he starts speaking at 1:30 p.m. london time. check out rocket internet shares on their first day of trading. stocks down by almost 8%. another big mover in the other direction is in dubai, that stock up over 12% this morning. stay with us. ♪

>> welcome back. i am jonathan ferro. we will talk ipos. the rocket internet shares not doing so well, down by 7%. let's bring in caroline hyde. we talked about them being a little bit greedy. >> investors certainly felt that. big bucks.or the they have raised about 1.6 billion euros. the biggest initial share sales since 2007 in germany. they have gone for a big valuation. it is thinking. many of us are questioning whether this can be supported. the first day of trading does

not stay. investors are going to get themselves round the valuation. euros.ue of 6.7 billion investors have to look at the potential for growth. breeds copycats. the likes of ebay and airbnb have been taken as a business model. brother company. they managed to be excellent. we are geniuses and getting ourselves into new markets. that is where they take their

risks. they go into their emerging markets. ebay has not gone into that -- has not down not -- has not gone down that road. they get everything in place. the business model, they hire the talent and the marketing and out they go. phenomenal business model. >> you spend a lot of time in tech circles. a lot of people would say -- is this an isolated event? or do you think there was a mistake? >> i don't think this is a mistake. this is what>> you spend a lot n tech circles. every european would say entrepreneur has been clamoring for. we've already had a plethora of smaller deals. we have had many e-commerce

companies, internet hunger to gt into these fields. rocket internet really could see other companies come forward. all of these companies are thinking about initial shares sales. billionaires,e that is the message from caroline hyde. they make their debut on the

local stock market today. elliott gotkine has more. not too shabby. they were up by 20% at one stage. there was a huge demand for this ipo. 1.6 million dollars. they could've raised more than $43 billion. byhelps that it is backed emaar properties. that was one reason there was a strong demand their.

ere. ipos will help that performance maintain the position. >> this is the start of for ipos in the region where you are now? >> there is a whole flurry of ipos land right now -- land right now -- planned right now. themepark thin operator. all planning initial public offerings in dubai. they were all dwarfed by the one announced yesterday. saudi arabia's biggest bank looking to raise $6 billion. be the biggest ipo in the world after alibaba. the biggest ipo in the middle east ever.

quite a big one that will happen in saudi arabia. several more looking to happen in dubai. at least one more so far this year. they are going ipo crazy and is part of the world. >> we will talk about this more later on in the show. let's get you up to date. estimatedwithdrew an 23.5 billion dollars this month from the pimco total return fund. it was managed by bill gross. 10.6% of assets. the agreement would keep their share for distribution will giving netflix access to the 10 million subscribers in france. any tech is handing over partial

control for the chinese website and the share of its profit in the country to alibaba. -- to gain a stronger foothold in china. the ec president mario draghi -- the ecb president mario draghi. near september 2012 lows. on the move is back in two minutes. stay with us. ♪

>> we will continue our coverage from the paris motor show. tom gibson reports. be the car of the future? citron hopes this year's futuristic concept offering will help boost sales. it is not even carry the manufacturers name, but it certainly makes a statement. >> trying to take on the established idea of premium. trying to do it in a french way. you are looking at an extremely over styled take on what we have become used to. any variety is good for the

industry. >> it is certainly luxurious. >> they have a big job to be done. showing oft is a upmarket cars. it is a good intention to show where it is going in terms of the brand. >> concept models were said to make their debuts. one has to wonder favorable make it -- wonder if they will ever make it onto the road. >> you see them in a slightly form where the designers have been reined in.

>> almost over. let's get a quick look at the markets this morning. lower across the board. the dax obsession lowe's, -- off session lows. that drop below 1.26 yesterday. the things you have to watch expected, 12:45 p.m. u.k. time, that drops. mario draghi and the press conference starts at 1:30 p.m. , the worst quarter since 2010. ecb president mario draghi

always promising to do more and a stronger dollar on the other side. if you want to talk markets, you know where i am. ♪

>> this selloff continues, european stocks slide as oil hits a 17 month low. the ecb meets in naples to flesh out a plan to revive europe's economy. start your engines, europe's biggest car show kicks off in paris. good morning. you are watching "the pulse." we are here in