mark hulett packard and to let. split. to work.g kong get back to >> the french prime minister is in london. we explain his economic lan after one is this man says france is finished. -- one businessman says france is finished.

a warm welcome. 7:00 here in london. >> we are going to bring you breaking news. john --uring in germany drops five when evan purse than. -- was for five points 7%. focus on the impact on the ecb. >> which will lead to calls to do more. >> after a week of demonstrations in hong kong, it is starting to dwindle. have removed some of the barricades. it comes after protesters met

with officials. demonstrators are demanding to be able to elect the chief without prior approval of candidate. what row graham have we got? what is your sense on the ground? first we are out side the government complex in hong kong. the numbers are dwindling. they might be down to a couple hundred. it is starting to look a little more lively. more protests. start to go to classes and go to work and go to protest later in the day. today is the first business day.

many people took most of the week off. they you could consider first real day back at work. progress, there have inn what seems like progress terms of negotiations. didn't they they have met three officials in preliminary meetings designed to pave the meetings. the number two is the man saying he notlocking progress and banning for the people of hong kong. protesters do say they are not willing to leave the protests right. they will continue to protest until they see some real

political reform. if they are cleared i force they are threatening to stop the talks. the negotiations are the way forward. toy don't want a return violence. heavy-handed behavior. there have the report in protest -- there have been reports in protest spot. protesters were saying the anti-occupy mob came and attacked people. people said it were paid or they were coming to look for a fight. there has been a lot of action. government workers have enabled

to return to work. they were using this foot ridge behind me. -- footbridge behind me. the government is saying they want the road to be unlocked. they say people cannot return to and they saysual, one of the ways is blocked by barricades bill. >> take you. hulett packard is on the verge in two.ting itself here with more is caroline hyde. it looks like the plan is going to be resurrect did. deja vu? she took the helm in 2011, meg whitman said, i am not hp, one that put

silicon valley on the map. she is. she is again did all. away they are going to divide the company is evenly in terms of revenue. a are going to have the printing was known for. that is one area. helm the ceo of the unit. on the other side meg whitman is going to be leaving. they are front and center. it is all about corporate hardware. it is $56 billion in sale a year. ceo.hitman is going to be

it is interest in. it is resurrecting the plan. said, why don't you ?plit the this is -- business it is hard because you have to re-create the whole thing. toy decided that is a way go. >> you said there was a spark. they went from doing a deal. is it a good deal for shareholders? but they get tax-free distribution of shares. boost thet could valuation. they have fallen behind. it was once the biggest pc maker in the world. and holdingiled

their number one spot. they must have missed the boat when it comes to the move to mobile. we want to be able to access documents on our smartphone. the new key is apple, where you can access your documents. provide cloud computing to startups. it is google. is not juststing it hp. microsoft had to change ceo. ibm had to sell units. this is how we had to react. paris.s go to the prime minister is in town to meet with the business community . time for ateresting

visit, isn't it? >> this has been planned a long time. interesting planning. the u.k. retailer said on friday france was hopeless. takevised investors to their money out of the country. the comments shocked everyone in embassyrom the french in london, who react did -- react to -- reacted. the primethe reforms minister will be defending in london today. not only does he have to defend his economic program, but he will have to be for what he calls french dashing -- bashing. >> written and france don't always see eye to eye, do they?

france don't and always see eye to eye, do they? >> of course they don't. britain isn't always a fan of france's social policies. david cameron said the u.k. would roll out the red carpet for entrepreneurs wanting to leave france because of higher taxes. then you have the the u.k.of whether will leave the european union because of this referendum, and to that the french are replied france was also ready to roll out the red carpet for u.k. firms who want to remain in the eu, so of course it is a battle of wills that britain and france do remain economic heart nurse come a and france was the first test the nation for british

interest and even before germany. >> takes a lot. -- thanks a lot. >> you can join the conversation on twitter. they cure -- thank you for that. stay with us. out whatitter to find is on this morning. >> european companies are competing in the market base. we speak to the ceo, julie meyer.

>> good morning everyone. a beautiful sunrise over london. what at her picture as we talk about the quarterly barometer. companyrs promotional shows that marketing firms have invest in.llion and we haven't even seen the last three-month of the year. who better to talk to about invest thing -- invest in?

julia myers joins us. what about this trend we are seeing, this momentum in the technology industry? this is not news to you? amazing in the last few how many we are speaking to. ishink the ball are seeing in digital technology make it all the way through to the markets. they are saying, some big is there is ai think in this participating transformation of industry. say, this thing you is what you want to invest in. disrupt or is enabling tech firms.

a concrete field. what is investable over the medium term? >> there is in him orton way to look at this. we are at doctors, those businesses not really trying to transform the existing financial order. those are disrupt others. bitcoin is about that. i think of most interest in in enablingo invest technologies which are transforming the exist in. existing. everyone wants to be in the inside --e -- disrupt disruptive side. there is a lot of risk associated with people who want to create a new order of things.

it gets a lot of entrepreneurs excited. 910 of the eyes berg of theailers -- 9/10 iceberg are retailers. they are not going to disappear, but how are they going to do that? they are enabling and giving them a new cut. we know in london monetizes helping banks get a cut of revenues that would have gone to west turn union and paypal. enablers. >> where do you put it in technologies? you look at how the shares perform, down 11 are sent from the initial price -- 11% from the initial price. where do you place it? >> he is extremely good at

execution, but his pieces feels very 2007. --is recently saying, basically saying, everyone is oing to buy some the online. they are saying there is e-commerce which lets advertising on top of it. help thee to simply ofld get online and be part many market. like being able to turn it out? back there is a corollary to his pieces that he can take these is better,el and do it that execution wins the drive to do that. clear some entrepreneur is not going to be able to do the same thing he did

and do it in thailand. i am not sure what value rocket rings. says, that looks like 2007. >> helping some of the old guards to become digital, that doesn't just mean to help them get online. in everyer data industry is the new entrance to the business model. isis my data. my data participating in the transaction of every retailer. at the micro level it is reflected at the macro level the way the industry works. there is a lot going on. look at how interesting. of eva is transforming

ismselves. -- aviva transforming themselves. they are becoming platforms. that is going to be 10 years. going to be sexy. it is going to be the boring part of transforming. >> we are going to continue with that. julie meyer stays with us. to stay with us as well.

>> welcome back. ceo juliened by meyer. ents, which is .bout all of our fast -- facets our data is becoming russia's. i am becoming more protect about -- etc.e, and that iran >> it is the crux of the matter. on the continent it is being issue. as a privacy who gets the economic value of our privacy data? the only entrepreneur who really

understood that was giving an economic upside. it ultimately was acquired by google for a good rise. .- price i leave it to entrepreneurs. corporate should be recognizing the value of consumer data in the transaction. google the way to out google, to say, we are going to recognize in every business model. the industry is being transformed. ares very difficult if you on the board of a bank, dealing with what you do. rely and have a

consistent way of being able to engage the davids who is going to open up the goliath of the platform. most, health care, etc., could become platforms and could enable these technologies that are brimming brevet -- bringing revenues. >> you talked about these pharmaceuticals. what does it mean? >> i noticed the acquisition, stuff on rovers, and he sold it for $350 million. the pharmaceuticals are putting in another one billion on top of that. this is basically saying your genetic row file is a starting point for drug discovery. profile is a starting point for drug discovery. minute,he remaining

give us the company you are working with that you are very excited about, and idea you might not have heard about that you think is going to be a big thing. exodus around bitcoin. -- >> it is around it going. ,here are companies out there and there has been a lot of focus around how the banks need to get into the game. time.d to look at this it is more about how banks have to get in the game. haveig issue is they -- install. problem problem on your smart phone. on thet to have you program. come, a runoff in rio.

comingare the policies up after the break.

>> welcome back. the foreign exchange market, it is a lower day for the dollar. no great move from one we last checked in. those german numbers come in lower than expected. payrolls, a little money

taken off the table. a view from the interest rate markets if you are going to see hike. dollar is lower. it translates into a slightly tronger yen. we are trading up. dovishla makes any more statements. two numbers to consider. in august of 98 the dollar yen 111.5.halfway point is and the rest of it depends. like german factory orders have

plunged the most in five years. they fell five .7% in august. that missed estimates. the euro area is struggling to retain its recovery. has lowered its forecast for china. a slumping property market underscores the risk of a deepening economic slowdown. expand 7.4 china to percent this year. that is down from the previous estimate at 7.6%. the results of the brazilian elections are in. that is the brazilian election. neves got 34%. neves in all face runoff on october 26. >> we are joined by the senior

analyst for latin america. thank you for coming in. what is the key question as we approach this next round of voting? it is where do they go? how do their votes fall when the candidate is no longer available? no longer the question. it would have the different ache -- becauseeverybody we'd knew everybody was going to support her. this is the big doubt. todon't expect everybody support neves. is because much of the left comes from environmental groups, and they are not in sync with the policies. there is going to be support

from some but not from everybody. >> those who wanted change, they look at the candidates, and they have alternated since 1995. does that hinder the chance of true change in an economy calling out for transformation? this is the candidate of the business sector. toy would love neves win. the poor people, they are fully behind -- it is 47 or how 50%. the poor people in brazil are behind rousseff. this is a big challenge for and i see that quite

difficult. surprising is it was smaller than normally suspected. is whatneed to look at was the main driver behind the gains he made over the last week? it was impressive. ff dropped torousse 41%. he obviously gained. at her economic legacy, it is not that impressive. what is she going to promise to the north that will carry her through? do you think there is a real risk of a challenge?

>> it will depend on the way they set up the campaign. nevese going to portray as the candidate of the bankers. how much this is going to make the previous election, they made an impact. time, all the people who took to the streets in june of 2013, they are happy with the establishment. thatsee aecio as part of establishment, not an alternative. he looks like he has hit the ceiling. she makes mistakes, maybe he has a chance. >> in terms of his record, the growth figures were weaker under

him. she had been credited with taking a large numbers of people out of poverty. it not sustainable enough? what were the policies that led to that that the market takes ?mbrage with >> the problem with brazil is were back inicies the 90's and early 2000, but the structural reform brazil needs is the main challenge. she is not doing that. fuel,ch intervention in but brazil needs structural and unless the government is not going to tackle measures.

>> the market funk on onicipation -- song rousseff woodwind. could we expect further falls? they going, because to read the bounceback as good news. and three or four days you would see the new poll. in october.to be crack she needs a strong finance minister. is that way -- her way to hold on to some credibility? >> that is one way to do it. he has to be something with a lot of credibility. that, it will be up

and down. >> thank you for helping to untangle that for us. >> there are reports lloyds bank is to cut thousands of jobs. we have the full story, next.

>> time for the chart. we are looking at the price of gold over the last five years. happened ong friday. gold erased its gains. the lowest level since august of 2010. the first heading for back-to-back annual loss since 2000. prices fell 28% last year. asestors are shunning gold the u.s. economy quickens. do not forget the index has risen to a four-year high. year.eaked this

it has dropped 14% since it peaked in march. that is $200. it is down 3%. strength index tells us gold is oversold. in the figure below 30 is oversold. what is the outlook for gold? goldman sachs reiterating its 1050 in 12 reach months. hsbc cut its outlook. the metal will trade below $1002. gold is a racing its gains for 2014 and heading for its first back-to-back loss in 2000.

keep an eye on gold. >> lloyds banking group is set to cut dozens of jobs and close more branches as it shifts towards digitalization strategy. where is this coming from? -- maybe theyn are two words or maybe exactly the same. it is interesting. unsurprisingly, this is the debate. how much will technology end up he wrote in -- eroding? it is a big debate at google. they speak passionately about the fact we should have a short working week. everything becomes more efficient.

certain layers will no longer be needed. you and i can do for hours of work instead of eight hours. lloyds is one company suffering. staffsays thousands of are affected by closed branches. mortgage brokers can go online. you don't need so many people in the branches when you go in. people don't want to do their banking app store anymore. they go online. it is a three-year plan they will be unveiling, october 28. this has been reported by other sources. it will be fascinating to see how other companies are moving by the fact we are digitizing. howhey are talking about the unemployment rates are

how technology plays into that. >> how this recovery looks very different when you look at wages and unemployment falling. there are all sorts of new metrics. >> the long-term unemployed, those out of work for 26 months or more. >> and hopefully means you are not going to have so many -- you pan won't need so many nurses. you have got mobile payments. we are able to order our coffees and food on the phone. jobs, all these service positions will become less and less. will become more skilled, more educated and longer-term in education and able to move to a better world. we will have more time to spend in our garages creating things.

to go back to become entrepreneurial. >> the maker of swiss army knife is retooling itself after its signature project has been all but banned from international travel. we visit the factory in switzerland to see if they have a plan to cut through their problems. with aiconic red knife tool for almost every contingency. questionsaced with that may dull the sharpest blades. was a very big challenge. drop by almost 30%. >> it all starts here.

they go through 3000 tons of steel. stamped in blades in other parts. the company is ordering flagship stores. for their headquarters they are looking beyond the alps to export a swiss right of passage. >> for a young boy you see the light in his eyes. samenk people will get the sense in life we seem to have. quick you don't want to just capture a boy's imagination. little girls are also potential customers. lots of colors to choose from. the pink one is popular with the

japanese. it is the new market and new customers who hold the key. it is clear these women know how to handle a blade. >> 7:40 eight. we are 12 minutes from the start of the european session. futures are pointing to a higher start. up by 4/10 ofs 1%. stay with us. ♪

>> welcome back. time in london the oven: the one. -- seven: the one. jonathan ferro is here. european equities markets look as if they are going to continue the jobs induced bounce we saw in the u.s. good news. >> apparently so. there were decent headlines numbers. you had a big upwards position. on have to find handle unemployment. then you look at the same thing. thely earnings, flat.

participation rate is lower. they can continue to pick out the things that really matter to them. >> we had a couple of conversations. the dollar is overdone. it is great for equities. you get goldman sachs, who are comewing it, and it will later next year, which i suppose is free money. >> you saw the dollar breakout against the same suspect. treasury yields remain pretty contained while the dollar is breaking out. >> you have a story on pimco. we saw a big reductions. there is a story you were looking at. >> they were attributing some of

-- they were attributing some of that to pimco having to remove itself from those well-publicized positions in order to meet the request they are getting from clients. he has moved on. he has arrived. >> first day at work with his new fun. .13 million i would say that is a step down. goingrstand the team is to be significant as well. >> talk to me about german factory orders. has of german data surprised. >> that is a huge surprise. mostoutstrips one of the pessimistic views. quite contrarian on

the dollar. on the euro he said 125. >> that is not much of a fall. we will see where that goes. thank you very much. you can join the conversation on twitter. @markbartontv. >> stay with us as we discussed the strength of the dollar. jon ferro,, bloomberg television, what more can you want? ♪

backs welcome. equity market are just opening. futures pointing a little higher after two weeks of losses that the foot the. -- ftse. the boss of john lewis suggests france is finished. drop at john lewis the most since 2009, adding to the slow down in the economy.

finishedcurrency better than expected. and we could see a move to parity. higher.sh >> it didn't even blink. have a lot ofey options. i like trends. trend overe dominant the past two weeks. we are in a reversal mode. coming off the

dollar. were the dollar goes, the momentum in the united states goes. be -- sayshs it will it will be a quarter. good news is good news. who cares? the market shuts it off. at what point will they care? kicks off the earnings season in the united states of america. aropean equities get underway little bit later. lloyds is cutting jobs.

you may have job cuts coming through. macquarrie questioning the return to dividend payment here in the united kingdom. give it a go. aer lingus, we have seen a rise by 5.3%. basically the long haul traffic is doing quite nicely. this is the top call. they say there is an attractive theirpoint, and this is top pick. exposure to russia they say is negligible. dollar declining. yeah and rising. ing.en ris

post-world war ii yen strength was 75.35. halfway between the two is the number. target of the market. i don't like that color. >> i am loving the drawing. is the market open. ftse 100 opens by a third of 1% higher. the dax opens 1.5% higher. let's bring in the ceo of titanium capital. welcome to the show. we talked a little about dollar strength. give me some perspective. >> what dollar strength. the context of

the last 10 years. isn't likely to get that much stronger and less there is a reason to do so. it sets it at international matters. it is an interconnected trade way. have a history of being the softest monetary policy out there. >> you say they have an international focus. they seem to completely disregard emerging markets last year. there is anou think emerging market focus? >> they have a responsibility for the rest of the pack. they haven't got any extreme domestic reasons to go sharply higher in interest rates. >> let's talk about the fed. a lot of people talking --

expecting high rates. you might see a breakout in the dollar, but you don't see that in treasury. >> why not? the treasury market has got this right. i suspect if they did raise it by a quarter point you will see treasury yields soft and. you anytelling tightening is going to weaken the economy rather than protect against inflation to come. >> gold. it is getting crushed, down by 14%. you used to like gold. gold.sed to love i think gold has a couple of problem's. there isn't a person i am speaking to who doesn't realize geopolitics is worsening significantly by the week. as you put your finger in the gold by and say, as it fit as a

protection against geopolitics? i think people are saying probably not. not want toason to earn gold. it isn't easy to push across borders without a banking system. what is it gold can do? it can't be used as a currency on the street. that is why i think the ratio between old and diamonds is so favorable. one reason gold is not reflecting rising geopolitical the bottom line the outlook for inflation? some people thought it was going to develop into hyperinflation. is theink inflation wrong word to use. there is significant debasement going on. put on itmore sand with no economic traction.

economicabout lovely data in the united states. you are looking at two or two and a half percent gdp at best. you are looking at no economic traction in europe after six years of qe. it is not working. >> that is the economics. we are going to talk about politics. check in on the euro dollar. a sizable move lower. dollar at 135o .34. germany is slowing. france is slowing. the french prime minister prepares to meet with his this leaders here in london. john lewis says francis finished. that comes next. you can follow me on twitter. in two.move" is back

equities higher. ♪

>> welcome back. this is live in london. it is time to talk france.

the french prime minister is in london to defend france and his government's economic strategy. this comes after one british executive called france hopeless, downbeat, finish. countdown has reversed those kinds of views. he meets with the business community. he meets with david cameron. is good got to say it timing. >> it is interesting timing indeed. it comes a few days after the managing director john lewis says france was finished, hopeless. course these comments were a big shock in france. you have french politicians saying the john lewis managing director was just doing french

bashing. he would have to defend his economic problem's. he will have to speak against this idea of french bashing. >> what do we expect? is it just praise and reform? the kinds of things we have heard in the last 12 months or so? >> they say the speech will explain french reform on how to improve france's competitiveness. the task is tough, especially when you consider french growth, which is 0.4 percent this year. that is half the pace of the eurozone. they will have to do a lot to business community. he was speaking in germany two weeks ago. british he knows the

might be tougher. moree reformist puts reforms forward. spending cuts, cuts in social charges for employers. in frontt the speech of the german community the same theg he said in front of french ceo. he said he loves business. same ate if he says the his speech in london today. >> does he love the equity markets. france seemingly on the cusp of restitution. french equities reflecting that. >> you are absolutely right. main indexindex, the of 0.2%., has losses

because of options to protect yourself against the volatility of the cac 40 index is at the highest since april of 2013. a lot of convincing for investors. many analysts say a lot of negativity has already been france still that has big exporters in the index. >> thank you very much. let's bring in philip. i know he has got something to say about france. .rance is finished france is hopeless -- kind of tongue-in-cheek, but do you agree with that? >> i think he is saying what people have thought for a long time. the french don't want to work. they are a booze and books culture. they have an idea the state

should look after them. being a a good thing, phenomenal -- a cultural phenomenon, that does not cut it. previous notve stepping up to the plate and fighting back. they have a big economic problem, which is embarrassing. >> you talk as if it is a problem for the people of france. we need to differentiate between the people of france and the french government because the french government is the one not changing. the french people are voicing their concern because the isroval rating of hollande at a low. isn't that saying something about the government? >> i don't think so. he tried thing is, but you can't force people to work. they constantly want less hours in a week. they constantly want welfare.

the demographics is changing. you have got a lot of north african immigration coming in. they have not got a high work ethic. i think france has serious structural problems. >> you cannot say the people of africa do not have a high work ethic. >> i did not say the people of north africa. they are coming looking for more welfare than work. they have not got the necessary track record france needs right now. compare that to what is going on in germany and elsewhere. italy has some problem. have you been in a restaurant where the waiters ignore you? they really don't want to do their jobs. >> i would say that is a generalization. >> of course. we are talking about the country. >> if you are talking about the u.k., it is a fact that the immigrants in this country as a percentage of the population,

more of them worked than uk's citizens, so to say they do not work that is really -- >> i didn't say they do not work, but if you look at the demographics, it is the asians who have worked much more than the africans have. the africans do not have a high work ethic. it is a fact. >> i think that is your view. >> i do not think that is the biggest problem. the french do not have a strong work ethic. that is your view. i want tot a fact. talk about some historical things. in the 70's britain was written off. they turned it around. germany was written off. they turned it around. why not france? >> we had a rotten attitude in

the 70's, and we did create more createrk ethic -- it did an extremity. maybe there is redemption. i can only tell you what is ather than what will be. >> in hong kong equity has risen as talks begin with government officials. we are joined by andrew davis in hong kong. have tensions really eased? what is happening? >> it is extremely quiet on the streets. we are seeing dozens, maybe a couple hundred protesters, down from thousands we have seen earlier. it has been dwindling, but this seems more extreme. down toe opened

headquarters. they seem to have responded. there has been a lot of pressure on the organizers to end this thing. things calming down, why haven't roads been open? why are people getting back to work? give me a picture of what is happening now. >> there is definitely more traffic. there is a road that feeds it. the main road from the eastern side of the island is still closed, yet there are people blocking it. the police seem reluctant to take down the barricades. i think they are waiting to see how the talks develop. they don't want to be too provocative. in theem to be moving right direction. traffic is disrupted, but it is still manageable.

buses and taxis are struggling, but you can get around the island. >> are we going to get a compromise here, or are these just to governments opportunity to convince them to back down? >> it is hard to imagine as soon forhey get what they demand the government to drop its plans is prettydidates, it much unimaginable beijing is going to bow to the pressure. i think both sides are probably looking for a way out, a way to save face, to open up talks on political reform. i think students are seeing the writing on the wall. they made an incredible impression. want theoth sides street occupation to end. >> thanks for joining us this morning. kong,tuation in hong

could this turn out to be something bigger for mainland china? that they obviously can. is watching this. everyone in china is trying to find a way to watch what is going on. this will set the template. there is a lot of protest throughout china ready to go if this succeeds. it does need to take another notch up. i think evidence through next weekend will be instructive. i think next weekend is a big for the demonstration. if it starts to escalate i think we have a real crisis on our hands. what we're seeing already is a slowing. the most since 2009. hong kong retail sales dropping as well. we are starting to see the data show a slowing chinese economy.

>> i have been watching. the diamond business we got involved in. we think the price of diamonds is going to continue to rise as investment currency pushes prices up with limited supply. elsewhere in the luxury business, i have been watching anecdotal evidence suggesting top and discussion -- consumption is in decline. things that were collectors items are suddenly becoming more available. >> when we talk about the minors, it is luxury goods makers as well. >> i think so. a massive consumption story. i think the anticorruption drive has taken a lot of the edge off. tothe world has continued really grow there is a lag that is going to affect on chinese export.

i think we are starting to see that. >> thank you very much. as we head to the break, let's check european equities. we open higher and stay higher. closed friday. missed the rally. -- in move is back into two. stay with us.

>> welcome back. let's bring you

back to speed with companies on the move. samsung is planning to spend $15 million as the company headed for its roughest report in years. third-quarter operating profit longed by 37%. a french patient with ebola was given an influenza drug and was sent home from the hospital. a spokesman declined to comment on the dosage or say whether the company has received requests to provide message. the monthly casino revenue fell 12%, down by a fourth straight month. the presidents cut down on now pro-democracy protests may take their toll as well. covering -- hovering

above 1.25. stay with us. we are back in two. ♪ .

>> welcome back to "on the move ." i am jonathan ferro. 30 minutes into trading. how things are shaping up. for the sea is higher. a big breakout in the dax. missed the rig equities rally. -- the big equities rally. since 2009. most , stocks to watch it. hungry? less talk about for retelling. to the highest on record.

-- a let's talk about food. retailer, theod biggest retailer has sold is norwegian unit exiting and on profitable business. clearly, a company that is cashing in on ill performing unit and managed to drive the stock higher. another german company up more than 2%. german stocks playing catch-up. you must read again. -- eu west strained a dan a because it is about truck demand. u.s. strength again, because it is truck demand. it looks like it could be

anywhere up to 400 million euros. down by more than want percent. citigroup said it cut the stop -- stock. they say there will be future revenue loss because of loss [indiscernible] of no so for lining at the moment. -- and no silverlight act of the moment. lining at the moment. >> construction pmi at 50. that is right on the line. is a better news for germany. if that is for the month of september. we have to talk about the for theorders down month of august.

the biggest drop since two thousand nine. there will be concerns about demand in of the rest of the eurozone. point 37, a big mover on friday. the top headlines. lowered itsnk forecast for china for next year and this year. it sees china expanded 7.4% this year versus the earlier forecast. country to grow by seven .2% at that fear. the chief economist said of the protest might slow down hong kong growth. the first around of the brazilian elections are in and the incumbent took 42% of the vote. that hisise was .pponent took 37% there will be a runoff vote later this month. french fry minister is a london -- prime minister is in a london

after the managing director said france was "hopeless and downbeat." he will give a speech or right here in the city of london. strong gains in the u.s. job numbers sent the dollar up. the lowest level in almost 20 years. for what it means and where it is heading, let's bring in the chief of the g 10 at citigroup. thank you for joining us. does it confirm your view of and the eurozone is heading can they euro/dollar dropped to parity? >> of the german data may signal that things will not improve any time soon and is highlighting what we are seeing as underperforms on the back of sanctions and geopolitical risk

is now growing into a broader base as a performance reflecting weakness and some german exports markets like china and risks remain on the downside. expected fromtion the ecb on the top of the measures we already saw last week and in recent of months. push euro/dollar lower. still a 120. and a lower still down at the road. >> if you are looking down the dollar, against sterling and not seen treasury yields a break out in the same way. what is it telling us? >> we are seeing it by the same driver. fed andence between the in the other major central banks and that is important to know if the fed is increasing and we

expect of the fed to start hiking go rates before subdued global growth. underperforms in japan and did the eurozone which by implication means the ecb and of the boj will remain a policy. that is fueling demand and treasury yields are becoming a high-yielding asset on top of it to being a safe haven. all of that attracting more inflows. the strong dollar and the lower treasury yields relative to previous episodes of said heightening but nothing unusual would continue. at the dollar could strengthen so more and the u.s. treasury yields will continue to blossom for here. to talk about the fed. a strong jobs report if you look at the headline numbers. unemployment and jobs added.

wage growth, not any. the participation rate went lower. are we getting ahead of ourselves again? >> there is always risk for correction where the market wants to reassess. in this written -- in this regard, quite important, the september statement that we saw was little changed and the whole message was taken from the significant revision in the media rates revision. to gaugewill help us how much of an importance that we should be a tribute to the dollar and how much to the statement. overwrought, just said it is moving toward the exit and it will be hiking rates -- over all, the fed is moving toward the exit and it will be hiking go rates. >> we had in job numbers and will will get the labor markets condition index.

how much should i be paying attention to it? >> it is important give it might evolve into one of the preferred measures for the labor market conditions. analysis was suggest it may lack a relationship between that particular indicator and payroll. giving an indicator is focusing or trying to summarize forward looking measures of labor market conditions, components from the [indiscernible] via construction, it should be some relationship. going to index, it is improve labor market conditions and that could encourage more dollar buying and even further gains in the upcoming payroll reports. >> i just want to finish by talking about sterling. where do we go from here? we have a couple of elections,

does it matter? part theo matter in a strong underperformance was driven by lingering political uncertainty among scottish independence vote and investors beworry that u.k. may starting planned a bigger role and the general elections next may. that said, the markets might be overdoing eight selling the pound. the markets and may be ignoring the fact we are seeing conservatives extend their gain over labor. it is quite important that in the elections, we see some surprise wins. that could highlight not only the conservatives a but also to labor. >> very quickly. the business secretary in the u.k. has come out and said percent-15%to

overvalued. do you agree with that? opposite. we think sterling is still fairly undervalued against the euro and at the dollar. in our analysis, we focus on drivers like long-term credit our model is [indiscernible] euro/sterling, below 78 cannot be excluded. according to our analysis, sterling still looks undervalued. >> valentin marivnov, thank you for joining us. of citigroup. let's turn to one of our other top stories. the brazilian presidential elections. democratsian social came close enough to force a runoff vote with the incumbent president. here with the more is our reporter. roderigo, was a result in line

with expectations for you? it seemed to surprise most people. >> i think that is the case, jon. the past week but no one signed him get close to 30% of the vote. one of the surprising things, the gap between the second-place candidate. wase it second around expected, i do not think anyone site it happening in such a tight race. does he have a chance of winning in the second round? ofhe did not have a chance getting the vote in the first round. i were not a right to him off. he built it up. it will be tough. up. would not write him

they came out, and said we are backing isa. she indicated that was the case. pther heart, the former member, she was part of the government for year. sort of a difficult call right now. if they come out to support her, she might win. kind of a discourse a speech that highlights the government it may have a good chance. watchinglot of people the lead up to this election, the equity market took a hit. she is seen as a woman who is not going to reform. is the iso going to be seen as reformist? >> he is full size the equities

market, you are spot on with that. [indiscernible] ahead of the brazilian markets opening. markets already kind of short excitement with the perspective of pushing del mar. he is more market friendly. theas said he will name economy minister. the one who created inflation targeting and brazil. he has a hedge fund bought to buy jpmorgan. he is very involved with the markets and known by the street. people like that. big thanks for joining us. we will catch up with you in an is couple of weeks. coming up, hewlett-packard slims down. the plans to split the company. it struggles to turn around.

we will talk about that after the break. we are back in two. ♪

>> welcome back. i am jonathan ferro. this is "on the move." hewlett-packard is said to be splitting in 2. a faces challenge amid changing tech landscape. is trying to

undertake it. >> back to the future, isn't it? we could hear as soon as today they will split. when whitman took of the helm, she moved away from the idf is set at was the predecessor or said we need to divide this business. away from the idea and it was the predecessor who said it would need to divide this business. it is about enterprise and the cloud and the area they are trying to patch up. it is a timeline. 2011, they said a we will not spend off the pc unit. things have been difficult. they were no longer the biggest pc maker. they lost the title. they have to reanalyze. would you look a rough and no, they get about $56 billion from

the pc, printing unit. look at it, they get about $56 billion from the pc, printing unit. she will be chairwoman of the pc unit and someone else will head up the other. going back to where they thought. >> it is interesting and at the last week, we saw another split as well. the company splitting in 2. offbay looking to spin paypal. these old juggernauts. hewlett-packard was born in silicon valley. if they have not managed to keep with the times. losing their number one space and they failed to move to mobile. who are the winners? , who provide web services and the clouds to small businesses.

startups like pictures. it is much cheaper because you have amazon web services providing udall website hosting and software. being ablemicrosoft to manipulate your documents. you and i do not want to be trapped at our desks and want to been are smartphones like apple has for its. everything seamlessly to one another through the cloud. first, suddenly for it is about that area and cloud computing. also the likes of ibm having to several businesses to lenovo back in 2005 and the likes of de ll going private. these copies have to reorient. >> i still want to force greens. i love my terminal. eight screens.

i know. moving on. companies on the move. shares are down a big. it is planning a one billion euro financing plan. it is backed by the board of u.s.y and includes it capital increases. the company said it was allowed of new means to invest in disney paris. jimmy choo shares will be offered at 180 pence in the company's ipo is a it would value the company but to win 500 company's ipo would value the company between 500 million and 800 million pounds. according to a person familiar matter, theder --

company will announce new plans. "the pulse" is coming up next was a guy johnson joins us. it will have a french feeling. chris the french prime minister is in town. francine lacqua is back. perfect combination. could not to wish for more. she is back on the perfect day. -- could not to wish for more. perfect time. for more.ot wish she will be back on air very soon. the attempt toat come to london and saying we are not finished. john lewis it made the we are finished, but we are not finish. -- john a lewis at may think we are finished, but we are not finish.

>> trying to get a message across. mostheading out the reformist government we have had in years and i want to make changes and while it will take time, bear with us. >> there's been a lot to pessimism. do not write for us all. germany, a decade ago. do you think that's a kind of thing with the say out of will recover and get back on his feet. the question is, how long will it take and how much pain are we going to go through in the meantime? you think about the reforms into the u.k., the miners strike, the pain, the excruciating pain the u.k. went through in the period and the ripley sex are being -- and theu wonder

ripple effects are being felt a you wonder. they were huge changes. german reunification a massive for that country and the reforms and is still being felt. is france and deliver that timeframe. big presidential election and it will be huge. >> european equities. we opened higher and we stayed higher. the ftse up. the dax up. it is called a catch up or rally and that is what it is. catching up. over 100 points for the dax. .on the move" is back in two ♪

>> welcome back. almost an hour into equities on marketing. checking on the euro. the losses from friday. we are off about 0.1%. orders are terrible. the biggest drop since 2009. for you guys who love the bond has his,. x pimco boss new job. last week we learned that pimco lost a massive $23 billion following gross out of the door.

new fund has $13 million of assets. going from the -- [indiscernible] we will bring you more on his new job. you can follow me on twitter. ♪

>> france is not finish. londonme minister hits to counter that in the french are hopeless and downbeat. the comeback of the century, -- the second place forcing a runoff with the president. hp had's for a breakout. the tech giant is said to split into two. good morning. you are watching "the puls