we were told back in july that was not the rationale for the deal. futures are higher. ftse futures are up 36 points. --eceased >> what you do have to do is -- where you are with bond yields has a tacit implication of how you look at all the other asset classes. just look at that u.s. bond market from yesterday. that was just the stuff of real moments of capitulation, an about-face.

10 year government bond yields dropped like a stone. yellen, the united states of america -- everybody is having this emotional breakdown over these equity moves. these are small in a relative sense. equity markets in europe are rising today. seven days in a row. the longest losing streak since november of 2011. volatility is rising. as far as risk, that is the question. markets can fall, but if there is nobody there to catch the fall in price, no market makers to provide a decent level of liquidity, it throws off a much bigger issue.

dissipatedulation liquidity? equities are rising. rising equity markets around europe. london is up. i am curious what is going on in paris. let's have a look at some of the other companies. b-sky-b. acquisitions.w pharma immunology, fascinating area. st is the driver behind roche'

number. b-sky-b. netflix took a drop last night. number of people leaving versus arriving is flat. notice therenyone was no inflation? that is what is hurting nestlé. 4.7%.rket was looking for >> we have the market bounce. 1% higher. plenty of earnings to discuss the the morning. let's focus on pharma. roche sales came in ahead of estimate for the quarter. switzerland,op and thank you for joining us. solid set of numbers. you have seemed -- you seem to have done a great job. i want to talk about the patent.

it expires in a few years time. what are your plans to protect the blockbuster drug? continued strong growth as we extend into new indications. growth for the remaining time this product is protected. forward, i put it into the overall context of our portfolio. our goal is to move the standard of care in the various diseases. thismedicine is excited in space. immuno therapy.

we have trials ongoing in lung cancer and bladder cancer. we presented combination data in renal cancer. if the data is confirmed in late stage pivotal trials, that has the potential to move the standard of care. commercial potential for us as we go forward. >> let's talk about the recent acquisition. you paid north of $8 million. .he premium over 30% have you overpaid? how much does that drug need to sell to justify the deal? excited about the opportunity it offers to patients on the opportunity it offers from a commercial point

of view to our company. theme remind you that deadly lung disease with a median survival of two to three years after diagnosis and for the first time ever, we have treatment for this terrible disease. this is fantastic news for patients. we are not eager to bring this medicine to patients as soon as possible. we do not communicate potential peak sales. a shift in thes standard of care. as such, i am very confident that this will also be a big commercial success. eventually, we will be able to

recover the investment. >> quickly, a lot of concern in europe that the eurozone is about to fall back into recession. your company gets around 30% of its revenue from europe. what is your experience? >> it is a difficult environment. there is enormous pressure on government as far as the public households are concerned. we see this pressure in the health care. there is an enormous pressure also on medicine. we are in a privileged position because we focus on highly innovative medicines which makes significant difference for patients. we are less exposed to pressure. day, aend of the life-saving drug which makes a real difference for patients,

those kinds of medicines find their way to the patient's. >> thank you for joining us. ♪

>> welcome back. we are live from the city of london. we stream on everything. let's talk markets.

a busy day yesterday. let's go straight to andrew wilson. nearly a trillion dollars in assets under management. a big day yesterday. the slings in the market he -- the slings and the equity markets were huge. blame everything. the punch bowl doesn't get topped off anymore after this month. >> i do not think the bull market finishes. but you pointed to the volatility yesterday. it is hard to know what the catalyst yesterday. retail sales the tipping point. not a particularly big thing. it comes in the back of a steady stream of disappointing news. the imf and world bank meetings added to the gloom.

strong isment of how this global recovery. we have known for a long time that europe is very fragile. what is being questioned is whether the u.s. recovery has the same momentum and can carry the global economy. >> let's talk about the u.s. recovery. you see loop -- you see in oil price which is a symptom of a we global economy -- of the week global economy. i-stimulusmin package for the u.s. economy? rock has increased -- iraq has increased production. the saudi's with high level of production. it is definitely the stimulus in

the u.s. it is undoubtedly a positive. people on the other side talk about the appreciation of the exchange rate in the u.s. and that will dampen growth. it is a positive for the consumer. area where pretty positive on. the consumer facing stocks are likely to benefit from this. that is true in the u.s. and japan. we had a bit of a slump and it is starting to pick up again. those are the names that will likely do well as we see the economy continued to run at about 3%. >> let's talk about treasuries. this has been the trade of 2014 for so many people. the yield just keeps going lower. when was the last time we saw move like that? >> it was remarkable.

it feels like a very long time since we have seen that volatility. it was within the space of four or five minutes the treasury yields moved. he bounced back again. 2.1 on the 10 year treasury this morning. it is still much lower than where many people expected. the key to this is the inflation number. we have seen those steadily moved lower. trend come off the upward that we saw. u.s. inflation is about 1.7, not at european levels, but not increasing at the level you would expect given the following unemployment. >> maybe this is the time to go short treasuries given the yield will remain penned down question mark this could be the next -- penned down? or this could be the next window

maker? certainly, the momentum in the u.s. economy looks pretty solid to us and the improvement in the labor market will result in higher wages. it is taking longer than any of us expected. the unemployment rate in the u.s. is now 5.9. we are getting anecdotal evidence already in the gas and shale area. wage rates, we think they will increase. it will take a little while. >> how do i look at what the fed does now? we have gone from being wildly optimistic to wildly pessimistic? what is your view? >> we think the fed will finish tapering and likely to raise rates in q2. given what is happening now come it is probably -- now, it is

probably pushed back to june. gradually.pen we do not think that has changed as a result of the volatility yesterday. >> let's talk about high yield. one of the most liquid markets in the world can be that volatile, how scary is it for me to put money in the high-yield space? is scary atthink it all. around-- we're looking 6.5% on the index. you are getting reported for that -- we warded for that. the fundamentals look pretty good on high yield. defaults.not see they are incredibly low.

compensated.ng it is time to think about asset classes like high-yield. >> let's talk about europe. yields went lower, that always happens. on the periphery, it was not a one-way trade across the eurozone yesterday. greece is back on the radar. >> it is a symptom of concern. whether it is a bellwether for problems to come, i am doubtful. it is really just a sign of the volatility. that is what happened yesterday. treasuries rallied incredibly. it was a bit of a scary story for a while. >> yesterday was dramatic. many people said it was a sign that the wheels were starting to fall off.

we've had a correction. what do we do now? >> i think it is getting to a point where those valuations start to look attractive, particularly in europe. you have the additional kicker that the euro has come down a bit. most of european earnings come from outside the eurozone. this is very helpful for european companies. the signs are there that it is start -- find to start looking to increase allocations. >> fear, drama. andrew wilson, ceo of goldman sachs asset management. revealedoday's results the company will have a tough time reaching its full-year growth target. the company having a worse day hire, down by over 11%.

looks like the deal is off. $50 billion taken away. more on both of those stories, next. ♪

>> welcome back to "on the

move." out with earnings this morning, some decent results. share price up a little bit this morning. >> names and brands. not italian enough for you. quarterly net organic sales, down by 1.5%. the world number one distiller. analysts have been looking for drop of 1%. let's focus on what they told us about the developed markets. if you look at europe, they're quoting some of the uncertainty around the ukraine situation. weakness in germany, not expecting that to improve until the second half. declining sales in russia and eastern europe.

organic net sales for europe down by 1.4%. the estimate was actually for growth. north america, developed markets not picking up where emerging markets have fallen away. this is their biggest geography. business, they're struggling when it comes to getting these developed markets to keep momentum. -- nowbig companies you're seeing some weakness. that was against investment of a drop of just 4.5%. the company saying as the

overall picture, the consumer trends are unchanged in the quarter. competition against vodka and united states is one of those. tax increases in kenya. a change in regulation in both china and turkey. remi has done quite nicely. it is around 54 euros per share. it is bouncing nicely this morning. they delivered a 5.5% drop to organic sales. this is the poster child for all the struggles businesses were having in china as we saw a

clampdown on the gift giving culture. it has come a long way. >> that kind of day. with the exception of nestlé. they're sticking with their full-year outlook. missed estimates. hans nichols joins us now with the breakdown of the numbers. nestlé hased that challenges in all markets. especially in developed markets. the only had .5% growth in developed markets. developing markets, 9.5% growth. 4.5% growth, they are sticking to that 5% outlook for the entire year. last nine months. unclear how they will get their. maybe we will -- press the ceo only speak to him

later in the day. said in aat the ceo press conference earlier and settler. -- in switzerland. in some ways, that gets added. -- gets at it. how does the world's biggest food company survive? no tailwinds, down year over year about 3.5%. overall revenue, they missed estimates a little bit. this company is looking more like you know ever -- you knew unilver. >> you can try to blame me for everything, but not baby food sales. do not miss our conversation with the nestlé ceo later this

morning. it is the first interview of the day. a quick check on european equities. a move higher after a bloodbath yesterday. so much to talk about. stay with us. ♪

>> welcome back to "on the move ." 30 minutes into your trading day. these are pretty much session lows. the dax up 50 points. this would be a good day but when you look at yesterday it is a bit of a relief. the worst day of losses for a good three years. you can get pessimistic or optimistic, what you have? >> food. 3% higher for remy cointreau. it has been affected by the cut

down on lavish spending. it was the biggest gain for a year. they declined on the organic bases by 5.5%. but that is in line with analyst estimates. the majority of its sales from cognac shire. 22% lower yesterday and living a third of its value in two days. the biggest two day to client since march 2002. recommending its shareholders vote against the $51 billion takeover of shire. that is amidst concerns of tax rule changes in the u.s.. shire falling once again as is nestle. 2% lower today. sales that missed analyst estimates. it calls into question analyst

targets of 5% and nestle targets of 5% growth this year, the asian market becoming more challenging. deflation is eroding. growth targets for this year is 5%. will it reach that target? 2%.le down by >> here are the top headlines. european equities are bouncing back this morning, but in asia japan dropped 11% from the latest high in september. asthe u.s., the smp regained much as 3% and a second confirmed case of ebola. blame everything is the line for yesterday. looking at the biggest bailout and history as it risks falling apart. a month-long selloff has pushed bonds to a level that could cut grease off from the market.

it is official, their recommending shareholders vote against the takeover of shire. the ceo says it is not in the interest of shareholders to proceed because the evaluation is no longer supported despite the changes and tax rules. pay say they may have to shire a breakup fee of $1.6 billion. something else that is big, oil. brent has been crushed. lingering at lowest points since 2010. for more we are joined by ian armstrong. great to have you here. we talked the fundamentals to death, i want to talk winners and losers. a downgradet have

in demand forecasts i would say clearly a muchas lower forecast for gdp growth. exit capacity in the global refining industry. i don't think they are the big winners. >> let's talk about the big losers. >> shell, bp. is there any difference between them? which one has a legacy oilfields with smaller margins. --margins question mark >> margins? >> there is not a huge difference between them. massiveple they have a capex program but that has been paid for now. operationgh-margin and they are more involved in think you could say that in terms of what you call long-term cash cows in terms of

the operations they have, they are slightly better off. however bp in the last two years, has brought on significant new capacity at much higher cash margins. across the board, have you differentiated the earnings as lower or is it a blanket downgrade? it is a blanket downgrade. i'm still deciding what do i think the average of oil prices will be in 2015. about 103.t i had i would take it down to something in the mid-90's. i will not take it to the 80's because 80 is not a sustainable number. >> with 80 right now, let's talk about the minor players in the u.s.. there wasshell boom, so much optimism. how many of these guys will get flushed out?

areas interesting to me those very small unquoted players. the ones that do 20 barrels a day. we have an estimate somewhere in the region of 10 to 15% of the shale production comes from these guys. they are getting taken to the cleaners. it probably leveraged to the high hill as well and the banks are waiting to foreclose. thatuld because is to say they would give up straight away because the same thing happened when the u.s. gas price fell well below three dollars. we thought the gas production was going to be substantially impacted, what happened was these guys clung on by their fingertips to the very last and were saved by a rise and the gas price. >> what does it mean for some of

the guys in the market holding the debt of these companies? i'm looking at $50 billion of hide yield u.s. junk bond offerings by energy companies this year. of 100dea with oil north and everyone talking geopolitical risk, you see in october not looking so good. >> it depends what you have in terms of the assets. have goodll did not shale assets. they got an early and they were the pioneers. level, they are probably just about managing to break even and pay the bank. if it stays much longer, the bank will start to get worried. about the u.s. market, but we talked about some of the some of the rash for the end of last year, where the stock market hated the smaller

bmps, the bond market seemed to love them, you had tallow, you had premier you even had golds keystone petroleum. all made substantial amounts of money. stroke 6% in the case of gulf keystone, but the bondholders were happy to take that risk. they are down a little bit, i think premier's down at 93 or 94 and it is about 6% yield. you have to remember that 20% of premier's oil is being sold forward next year at $101. >> they are covered. let's talk about one final thing. does it spark a little bit of m&a russian mark -- m&a?

think it would have but capex is bad, expiration is bad, we have now had a new raft of new ceos. ceo, the onlyw big ones that are still there are exxon and bp. the final question, all the is it bad?ort, ask it will be the best of the bad bunch. best of thel be the bad bunch. because shell had a horrible quarter last year the comparison is much easier. >> thank you for joining us. here are the dates for the diaries to keep an eye on the oil industry. third quarter runnings at the end of the month. bp on the 28th and shell on the 30th. that will be a big week. if you think oil has been

crushed, check out the shares of netflix. investors wiped more than $100 off the share price after user growth missed estimates. down by 25%. we will address what went wrong next. report before getting much bigger. back after the break. ♪ >> welcome back to i am jonathan

ferro and london. this is "on the move." company's final results. recently bought sky deutschland and sky italian. look at bskyb shares fall. drop-off,it of a 3.5%. >> solid numbers across the board. pricing was pretty good and subscriber additions were pretty good. both are in a competitive market as sky and bp data let out in the u.k.. investors would say these are solid numbers as the company

expands to germany and italy. numbers,look at the they don't seem to be taking a bite out of each other. >> i think on the longer-term this will be a more competitive certainly in the near-term results, both companies were adding subscribers in both companies had decent pricing power. and longer terms, certainly sky stepped back and rupert murdoch stepped back and said they are probably still better markets in italy and germany where the penetration levels are lower. >> that is why they're going after germany and italy. >> i think so i think that is why they're looking to take advantage of those lower penetration rates. also sky is looking to leverage the rising cost of programming which is a big challenge for all paid tv actors around the world. number three, it is a competitive market across europe we've seen john malone make a

lot of investments across europe and this is the response. >> the competitive market, i've sky done and bbc done, and netflix, this is a stock for the brave. this is a big move and it seems to happen one way or the other. what are netflix doing right and wrong? >> this is a momentum stock and it is not driven by earnings or's but subscriber trends. what happened here is we had different -- disappointing subscriber attacks. >> issue number two was time warner had their investor day in new york and hbo the first time announced they will go over the top with hbo in north america which means you can get hbo now over the internet like netflix without being part of the pay-tv bundle. that is a big competitive threat to netflix. >> i will get dramatic you get sensible.

company a house of cards, if hbo goes after them are they game over? >> i don't think so. netflix has a couple advantages. have great brand recognition in the markets they are in, and they have first to market mover advantage. you could argue that hbo is catching up, that they are a couple years behind netflix. inot of resources to invest programming, and at the end of the day the real winners as hbo and netflix square off are the hollywood programmers making movies, making tv shows, they will benefit here. talk about subscriber growth for netflix, everybody looking at the u.s.. how are they performing in europe? is that a big opportunity? >> hbo is already here and they have an over-the-top direct to consumer service in many markets in europe. netflix has been a big grower in

europe, they started in the u.k. first and then some other english speaking markets went to scandinavia. now the big growth areas are netflix is in more competitive markets, france and germany are the most recent launches in europe. three companies that have global ambitions and the battlefield is europe not north america. >> thank you very much. netflix has taken an absolute beating and after hours. growth shares are up after the farmer released third-quarter sales ahead of estimate, boosted by sales. the company confirmed that it still sees low to an bid digit's -- low tip single-digit sales growth for this year. revenue at the world's a guest food company rose 4.5% versus four point 7% forecasted by analysts. the company says they are still

grinning -- aiming for organic growth. fell .1%, while organic sales more than .5%. car for agreed to buy back. theya look at apple, released a sneak peek of the new ipad ahead of the official launch. the ipad air to an ipad mini three appeared briefly on the website, both include a fingerprint scanner. apple shares closed lower in u.s. trading. ," is on most over and "the pulse," is coming up at the top of the hour. a little bit of a preview. >> we have what could be the best guess on a day like today. ,esterday the market in turmoil global growth concern and deflation concerns ripping through equities and treasuries.

today we'll talk about nestle. you think about nestle and you think of food company, but think more broadly. here is a company exposed to global growth, exposed to deflation, exposed a big mover prices, exposed to ebola. paul will have a view on all of these issues because they directly affect his business. tailwindsere are no for nestle. investors have grown worried about global growth and are worried about the fed. what does paul think? he has to deal with these issues every single day. ebola outbreak on the ivory coast, do cocoa prices double? he has to think about whether or not the euro zone five-year five years, at inflation, how is he

inw -- how does he grow europe? how much money will he have to invest. this is a company that has a 2020 bond them a 2.5 coupon that is trading at 101 at the moment. that gives it a slow curve yield at 0.5%. can is a company that borrow at historically low rates. what does that tell us about where nestle is going next and their balance sheet. i want to talk about all of these issues later on. it is the focus of the two hours and is the great prism through which we see the global growth -- growth story. >> i want to get back to european equity markets. i can tell you the bounce is there. the rest of europe is lower. by .5%. down greek bonds, guess

what the 10 year up 680 points once again. only lasted 30 minutes. so many things to talk about in the market right now. we'll cover one of them, shire and their share price this morning. that is lower. 8.75% thisn another morning. more in two minutes. abney recommending to shareholders not to do a deal. ♪ >> welcome back to "on the move

." i am jonathan ferro. time to talk about shire. another big drop for that company. avenue ne is recommended to shareholders that they not pursue a deal. that is done and dusted. let's get the reports on that. it looks like the deal is off. that is what we are seeing in the market and the language we saw overnight that said in no uncertain terms. this is pretty much dead. it has to go to a shareholder vote without the recommendation of management it is all but dead and investors are assuming that as we can see from this calamitous fall. >> we were just talking about it. we were at levels before they rejected the bid. we are below those levels at 38 pounds a share.

are people going to look at this d think the beale might be off -- deal might be off but it doesn't mean the company can't be acquired. shareholders lost a lot of money betting this deal would go through and getting more than a ruse. company a successful and has products that do sell and it does make money. it is on every pharma analysts list over the next three years. clearly this is a company that has more of a story than we are seeing. it could be in the frame again as an acquisition target or it could be an acquirer itself. >> some people calling this, deal risk is on the table now. this is a company that says tax rules worked rationale for a deal and it looks like they are. deals are clearly

becoming a theme. if you go down the list of the biggest transactions whether u.s.,arner and fox in the or a transatlantic story, or abbvie and shire, it is getting hard to get these things done. washington tried to put the stock to emergent transactions which is what this would have been and they have succeeded. i think there is a lot of ambition and confidence on the part of the corporate world, but they are hitting the wall on these deals and finding out that hubris, confidence, doesn't get the job done. a matt campbell all over deal, that was one of the tailwinds. little bit higher, when they return and the next 20 minutes. equities in london are higher. the dax dipped into negative territory and is back into prosody of territory. -- positive territory. greek bonds back on the radar.

the 10 year up another 20 basis points. the market is asking questions. if you want to follow me on twitter you know where i am. ♪

>> slowing global growth takes a bite out of netflix. sales missed -- a bite out of nestlé. sales missed estimates. looking forward to that conversation. .ashington wins shareholders vote against the shire deal.