>> russia downgraded moody's, cuts the credit rating to close to junk. says why he will not burn up the reserves to save the ruble. >> a one-on-one with france's richest man. tosays the company is ready whether the slowdown. >> the company misses estimates due to sluggish demand in china and russia. >> welcome back to "countdown."

little bit of luxury. in a weeks time a new private museum will open in paris. it is called the louis vuitton foundation's creation. caroline is live from paris. good morning. this museum does not open for a isk, but the inauguration tonight. >> it is going to be inaugurated by the france president francois lucky enough i was to visit before the official duration. it is a pretty imposing new building. it is all glass and steel. he told me it was more steel than the eiffel tower. he got the inspiration when he

visited the guggenheim museum in spain, that was built by frank gehry, so he asked gary to create some sort of sailing ship. we don't know how much the project cost, but it is believed to have cost more than 100 million euros, and it will house the collection and some new artists in contemporary art. it is also a major publicity coup. alsold rival has envisioned to build a private museum in paris. he decided to abandon the project and hosts the collection in venice, in italy. become thetion would newest tourist attraction in

paris, especially for asian tourists, who are a big fan of the brand. the plan is to attract one million visitors a year. know he also tried to reassure the slowdown in china. what did he say? course, we have third-quarter revenue last week, and one other concern when we had these numbers was the slowdown in china because of the chinese government crackdown on lecture he spending. especially in the fashion division. i asked, and he told me he was of the deteriorating market conditions especially in china. today in europe it is slow. it is better in the u.s.

it is also slowing down slightly in china, so we have to adapt to that. number one 20 be years from now as we are today. the group has always been at its best economically, so we are and if it happens we have confidence. -- arnaulton all telling me he is ready for the challenge of deteriorating market conditions in china, despite the fact that they luxury goods of would only rise by 2% this year, and that would be the slowest days we have seen in five years. back to you. >> thanks. for you.breaking news

>> europe's number one home appliance maker. they have given their numbers for the third quarter. we are expecting a third operating profit. the numbers come in a little better than estimated. the reason is interesting. strongn focus is a operational recovery in europe. challenging macroeconomic conditions. sales and earnings remain at a good level. itn you dig further down, really has to do with the cost side of things because they are saying operations in europe continue to recover after a strong focus on cost savings during an extremely difficult market. this business bought the ge appliances business for $3.3 billion. last month. they are updating investors, saying they expect that to close

in 2015. the group of investors is planning to bid for adidas reebok unit. >> we saw that story. hans nichols has been looking into this. rebounds, this has been a troubled purchase. terms of u.s. in positioning. what do we know? >> we know there has been a group of investors from hong kong and abu dhabi. they are offering 1.7 billion euros. billion dollars for reebok. which adidas purchased for 3 billion euros back in 2006, so almost a 50% haircut. we know adidas is a company under pressure. their stock is down 30% this year. they had problems not just in

in their golfo unit. when you look at the u.s., they are still waiting for their soccer bet to really pay off. some of the marquee basketball stars have been injured. that isa company struggling. with reebok announced that they want to retool it. the casualet into sports market. reebok had 8% market share. it is down all the way to 2%. adidas is dofor they want to continue to invest in reebok, or do they want to justheir losses and focus on this? my question -- tennis.

was reebok's main marquee? who wore their shoes? it is back to you. it was an american. michael jack. you are the tennis guy. that. >> veryw fast. brilliant, one of grand slam. >> i think i saw him at wimbledon. you can join in the conversation on twitter. sorts of sports trivia questions up, and we will see how he does. don't ask me. >> get on with it. >> the battle

for foreignroperty investors right ear in the city of london. -- right here in the city of london.

>> welcome back. weekendhave spent the browsing through the property pages dreaming about what you would be able to afford, but ryan real estate in london is always a good -- prime real estate in london is always a good attraction. tom gipson reports. a tourist taking a video of tower bridge, there would be no problem, but i am here with a professional cameraman. without a permit, i have not -- got no choice but to leave. city hall is not the exception. increasingly the norm -- the public have had enough. this is the u.k.'s largest

property show. land his offices stand on was bought by a firm last year for 1.7 billion pounds. why are seeking confidence in the u.k.? clients invested because they believe it is safe over here. it is continuous growth. it depends on the right environment. >> it is a chance for other cities to cash in. >> we want to spread the message we are open for business. >> overseas investors own a lot of commercial property in the u.k., so is this a smart way to build a city, a or is this the natural result of austerity?

>> i think it challenges the agenda. at the moment we have a lot less money than we have before. >> most here will tell you business as usual faces a standoff with those who worked to fuel it. the propertyk with theme from a different angle. the house index came out this morning. it said london homesellers raised asking price for the most in more than a year. joining us is the commercial director. good to see you. give us those are down. where do we stand? high-end seeing more sellers pushed prices to a new record in the last month. the underlying trend is a slowdown.

prices are higher over the last five months, so pretty much a standstill. time to sell is taking longer as well. the real figure is a 28 are sent -- 28% increase. >> is demand going to weaken in the winter. the distractions in london, skiing in swiss resorts, so a very seasonal market. prices at a record high. the ordinary purchaser still around, demand still there. the top and still falling away. >> i was reading about mortgage ec -- hsbc with their lowest ever. an interesting shift in the and mortgages. do you think they will be able to bolster the market? >> absolutely.

mortgage rates are looking to with ther for longer bank of england pushing out that interest rate rise because of economic issues. mortgages are harder to get, but really cheap money at the moment if you qualify for a mortgage. the lenders who have money to lend are in competition. they are looking for quality lending. said supply was increasing. that is interesting. a lot of people have been talking about how lack of supply was holding people back. >> in london, yes, but southeast has overtaken london. the key thing in the southeast is lack of supply. at least 3% more properties come to market and a lot of demand. >> if you want to make money in you havefive years,

done some research. .hree towns have stood out >> it is the most comprehensive data driven analysis. buting at the southeast also in particular southampton, luton are forecast to get over 40% in the next five years. >> all of them approximately two london. they are trying to follow the money because they cannot afford to buy in london anymore. near enough tore still commute. is that a growing trend? >> absolutely a growing trend, but getting further out. brighton is a trendy resort already. southampton, a lot more housing. stretched say it is commute from there. but ity it is an hour,

actually says an hour and 20 minutes. looke are forced to further out for value and affordability. >> are we at the beginning of that move? people cash in and move out. you say that is one of the headlines in your report. the southeast beyond the him 25 outstrips london. goes upage asking price 10% versus a year ago. that is a pretty big move. how long do you expect that ripple effect to last for? >> we are seeing london give up a lot. that ripple effect we see for the next five years, people looking for that value. london forecast to go up 33% over the next five years. >> the scottish referendum came and went. we have got the election coming up next. that's next year. ont are the biggest risks

the horizon? >> the market doesn't like uncertainty. the referendum could have us in limbo. i could see that as a concern. >> you think that could impact the market a couple years ahead? uncertainty, but we're looking at stable and interest rates going out. the prices and those forecast as well. >> what is your assumption on interest rates when they start to rise? >> we have always said we thought it might be be on the election next year. it does seem to be coming true. it's nice when a prediction comes true. >> thanks for chatting with us. break, a dealer downgrade of perhaps a secret submarine. we will break it down for you next. ♪

>> two levels above junk. a downgrade following president putin's appearance at the summit in milan. up with the russian president. quite ruble has declined

dramatically. what do you think about that? why does it happen? is it the world economy? is it the price of oil? when you think about rise of the price ofcause oil is being manipulated by saudi arabia and the united states? >> regarding the national currency exchange rate, one way or another it is connected to the state of the economy and the russian economy. globalernational and situation with regards to trade, oil, and energy prices. , but itave the client is reflected on the economy and budget revenues and therefore on currency. i want to stress russia is one

of the nations with the largest gold reserve. the bank of russia will pursue a .alanced financial policy this means it will ultimately use elements of a floating exchange rate and will not spend all of its reserves mindlessly, that the reserves are sufficient to adjust the currency. i do not see any dramatic changes. the rubledent exchange rate will also shift. >> ryan is back. just to enlighten us, whenever you ask the president questions at these events, he seems to or one of hisk colleagues gives you a look as well. is that a look for journalists who ask probing questions? >> a thing he likes to answer questions for foreign journalists -- i think he likes

to answer questions for foreign journalists. i think it is not lost on him he might add to his credibility to have a foreign reporter in the room. >> he looked quite friendly. >> that is the bodyguard. it took a long time for me to get my question out. he had long enough to figure out how to take me out. >> he is sounding fairly confident on the economy. >> he can see they may have to adjust the budget because it calls for an oil price of $96 a barrel. he is confident oil is going to come back. isn't the only country that needs oil between $80 and $90. those countries are going to make sure they get the price for the oil they sell. sale oil breakeven price is $80. as soon as it comes -- as it

gets down to $80, and no longer makes sense for the united those producers to drill for that oil, so you will have a shortage. there is a big conspiracy theory oil priceshat the being manipulated by the saudi's and the united states just to get an russia. >> that is baloney. i wanted to use that phrase. >> and putin said, if that is the case they are only hurting themselves. he didn't dismiss it, but he about thedoubts efficacy of the strategy. it is interesting to see here is oil is going to come down, recognizes the importance of the ruble to oil, well.so gaining as

>> i know it is going to be a big week for you. than 4000ome, more people dead and the potential for 10,000 new ebola cases. about a drug vaccine next. ♪

>> you are very welcome back. howay morning, time to see the foreign exchange traders are. 8527 .9 is where we are on the dollar index. the said governor is saying 3% growth is still intact in the united states of america. you could wait for a quarter or two. using the word patience.

that word is coming up again and again. if you are interested, go back to 2004 when they started to use the word and what it meant for the rate hike in the united states of america. the dollar the best against eight other currencies with a record net long position. the dollar is a little bit higher. markets are taking a little more risk. the yen is down. 107 .27.r yen is three different aspect. shinzo abe saying tax hikes will be meaningless if oninflicts too much damage the economy. those are the two biggest drivers on dollar yen, along with the pension fund that may

be able to buy up to 30% of exposure to japanese equities. good news for equity. >> the top headlines. announcing the first verse leavingave it after africa has tested negative. she will have a second test to confirm the negative results. dozens of people have been injured in a weekend of violent clashes between police and pro-democracy protesters in hong kong. protesters and government officials are due to meet tomorrow. hong kong's chief executive is blaming foreign nations for encouraging the demonstrators. two ministers are reported to have resigned from the japanese government this morning. japan's trade minister has stepped down over allegations

that support groups misused funds. postreported to leave her is the justice minister. and results were heard by unfavorable exchange rates -- heard by unfavorable exchange rates and sluggish demand in china and russia. --over the next re-years, three years, we have been able to position into two attractive growth markets. billion dollar market. we think we can grow significantly. they are accelerating the development of an ebola vaccine at an unprecedented rate. let's get details from the senior pharmaceutical analyst. good morning to you. give us an update on what this

means, how much hope we should attach to this. our reporting suggests in early 2015 this could be used on frontline professionals. i read that full use could come 2016.n late what kind of timeline do we attach to something like this? >> i don't know what they mean by full use. personnelct frontline in touch with patients. product they test in helping people to prevent them from getting an infection. taking this to the next stage, testing the frontline personnel in africa is exactly what they should be doing. end up with isu hitting two birds with the same stone. you are testing it in the larger population with the hope it will protect you.

broader use is an interesting question for me. perhaps what they mean is it is going to be given to every frontline. which you don't need to do. >> five companies have started human testing. know who is winning the race? >> i don't. differentave slightly technology. it will come down to which is the best immune response that is protective. that is the tough part. you might get an immune response were you can tell which one it will be, but the only way you tow is by giving it personnel and hoping none of them contract the disease. >> nigeria having declared itself ebola free. that is quite a big statement, given this sense of urgency from obama, and where we are with the calls for more funding. what do you make of that

statement? >> it is difficult to follow every single case, but if we , that the data is correct there could be no new cases, they used the best means they had. there was no ebola vaccine. what they have done is rallied the population to knowing and understanding there was a problem. on how the dentist used with her to get 200,000 children to brush their teeth at the same time. they used social media. you don't really need a super high-tech vaccine to control this. controlling it is perfectly possible through containment. >> thank you, the director of european research. >> s&p cutting the earnings forecast. clients are moving the focus to

cloud computing away from products.l software the chief executive joins us. great to have you with us. it doesn't read well, does it? you have missed, margins under pressure, and you cut when you 14 -- you cut when the 14. tell me why. >> thanks for being on the show. let me set the record straight. we actually were very pleased with the results. let me tell you why. be the we were going to .loud company we were going to scale the largest business network, and we would do so based on innovation strategies, so you will find we bye increased cloud revenues

41% or 42% of currency. we have no more than 4100 customers. that is a 36% growth based on the end of last year. 1450ve more than customers. in terms of the network we have more than 1.6 million companies. >> i must interrupt. i think the market understands you have got those numbers. i think all of that we have at our fingertips. , is i need to understand is it russia? is it china? is germany shutting down? what are the main drivers in terms of having to re-guide market estimates? that is critical to have investors understand why they should buy into the story. .lease tell us why

>> absolutely. first of all, on the revenue look aten you take a our results, asia has been extremely strong with 10% growth . europe has been strong. what we are seeing is we have to emerging markets who are posing problems at the moment. we have russia for obvious reasons, which typically is a growth driver. , and in in the klein latin america we have political issues around the elections in brazil who have also brought growth rates down. i want toental topic make on the adjustment on operating results we just announced is this is due to the acceleration of our cloud business. we see exponential growth much higher than we originally anticipated. with a recognition

that we don't book everything up front comes over three years. we have set up at the beginning. this market story for you -- i understand immigration. we all have been given the story, and we get that we need to be patient for those revenues to come through, but is it fundamentally a dissipation of when you focus on the cloud, because the cloud is 5% of your revenue. you need to get the core business on track. >> to be clear, we continue to increase profit while we go through the transition and asked a lot of our cloud peers whether they were able to do the same. we increase earnings per share.

we continue to increase profits. the pace of growth will be down in the short term as we move to the cloud. after four years we will see the revenue breakeven. thereafter, the cloud business is more profitable for us. if you are interested in a sustainable story on growth while increasing profits, s&p is the right place for you to be. but we had a conversation earlier. anna was saying, quantitative easing, a lower euro, all of these things go into how to get growth up and off the ground and europe. you have a big exposure in and here in europe. what do you need to see? then how to and said he needed to see more integration. what do they need to see to ?eally drive growth

>> as i said before, we are very happy with our results in europe. germany grew double-digit and revenues. the u.k. did marvelous in terms of revenue performance. in most mature markets we are doing extremely fine. what is obviously hurting us in the short-term is the situation with russia. our biggeste of markets, and easing political circumstances, they are coming back to a regular business as usual scenario which has been further able to raise growth the chiefrope. >> financial officer, thank you for joining us. the pink line -- actually, it is purple. coming up next -- finally.

the moving average. what does it tell us about the future direction? stay tuned.

>> welcome back.

white line with the s&p 500 going back 12 months. last week it fell by 12%. it has dropped four consecutive weeks. that is the longest trench since august of 2011. september 18 it has fallen. the purple line is the 200 day moving average. when it dips below that that is not a good sign. is 200 day moving average 109.86. it dipped below the moving average. to that date, the moving average actually fell to the floor during selloffs. it has been a floor for the s&p 500. here is a bit of history for

you. stocks have dropped below the 200 day moving average 19 times since 1971. that is not including recession years. has traditionally dropped an additional 2.2%. so far it has fallen by 1%. it has reached a median of 10 the initial breach. 10 days is up on thursday, which favors a bullish outlook. if it falls to the lowest it has fallen since 1971, we have a decline. the s&p could falter another three days. that is alleged. thing, is the s&p over bought? it isn't oversold any longer.

market participants are looking at this orange line. to keep an eye on it. the 200 day moving average for the s&p 500. keep an eye on it. there you go. >> time for a little luxury. a new private museum is opening in paris. the man behind the museum is the chairman. in a rare interview, he told caroline about his ambitions and the concerns about economic outlook. >> i was really moved. seeing what he did in 2001 when i met him. i asked what he thinks.

immediately he was inspired by the location. >> is it the shift? is it something else? >> i told him we should have a cloud. we can see a lot of things. in this cloud you have a lot of steel. >> what is behind you, where is this idea? >> it is frank's idea. difference, of the it is beautiful. july the teamin

all over the world, the group, and you have a concert. >> we are having a little debate over whether it is bright or dark or gloomy. >> i would take off early. >> i would have a good -- to the office. we will tell you what futures are doing. 15 points. stay with us.

>> welcome back. 7:53.n london jon ferro is going to tell us to. we have to look forward we shouldn't get too excited. we saw some bounds on friday. >> we are still closed for a fourth week of losses. how long? >> the longest stretch since -- >> 2016.

a report in the nick a newspaper did not cite where it was coming from, but i will give you the stats. they are talking about boosting domestic stocks to around 12%. doubling yourly holdings. >> and the topics went up. the foreign holdings of bonds 30%.tocks combined that is a sizable move as well. we have been talking about this for over 12 months, this fund .rying to boost the return when is it going to happen? >> he has high-profile resignations. recent appointments. look forwardgot to to? e have gdp out for the u.k. >> what are the minutes going to say after how they comment on

friday? >> you wonder if those are developed after the last inc. of england meeting -- bank of england meeting, i think at the end of the day inflation is going lower. luxury theinly a federal reserve has also got right now. isn't it remarkable? free or four months ago we were talking about hiking before year-end. argument you have a concerted effort by the central bank. their apple peptic -- apoplectic with fear. how feeble is the recovery? evoking aexactly great spirit of confidence. >> there was a long list that we

need all of that. we will watch adidas. the ceoe move is next. is going to speak with us live.

>> welcome to "on the move." we are moments away from the start of european trading. it is what we are focused on for the next 30 minutes. isray cloud and pressure growing on germany. the french minister travels to berlin. the europeanabout health check. is it a reason to worry or the final hurdle before an elusive recovery? we talked to the firm that that dollars on a

company that later became worth billions. that company called facebook. we're looking at futures. futures are higher. the dax is pretty much dead flat. a big move in asia. >> the big bet is the pension fund of japan will take a big bag of swag and get involved in japanese equity markets. quite a dramatic impact. it is a little bit of a mixup in irope. going back to asia, will show you the kind of momentum. this is a big question. the hang seng up half a percent. europe had its moves on friday. the yen is lower. this is an important week in erms of data for the u.k. we will get inflation data.

you are right. the debate about baking will build up in terms of asset quality review. report had big companies this morning. adidas toing for open. there is a report they may receive a bid for reebok. they cut the profit targets in july. we're hearing it could be abu dhabi. 5464 is were the stock finished on friday. phillips, 2.58% lower. profits missed wide. dropped by 16%. byy dropped the numbers 1.7%. i spoke with a cfo.

operating profit missed. it is all about migration. the greatest transition, and that is really the actual market delivery on the stock at the moment. those are three individual stocks to keep an ion. the yen is where the big move is. they yen lower by a third of 1%. saying sales hike tax, which is said to come at the start of spring next year, it hasorth during -- flattened japan's position -- if it is all -- of all it is going to do is break the potential

japan has to kill its deflationary spiral. the yen is lower. you have a host of federal reserve voices out this morning. i know we have heard the bang governor saying it is in fact. word we takene away is 3% is intact. a multiple of what the u.s. does, dragging everybody else up relative to your pulling -- that is the debate. >> that is the market. we have dax lower this monday morning after friday. let's get insider per spec of on top market themes.

we are joined by the global head of equity strategy at citigroup. it has been good to have you. what a volatile week. reminds you of something called core government bonds. you tell me why that is going to change. >> in the context of europe we think there will be more qe. it has been documented, the big fear is, are we doing enough? we fail to reach one trillion. the only thing he is going to be able to buy is sovereign bonds. equity look drastic as well as helping some of the equities bounce. it should be good for the banks. >> is the market questioning its credibility. you?is that coming to >> it is posturing. the fiscal tension -- i think

hasfact that deceleration finally, in the last six months in the periphery has made qe more likely. can he get there overnight? no, he needs to be able to show he has done different things. if he can show this is not enough he will be able to justify more. >> with yields almost at the floor already, what does qe do for europe? qe will force a lot more money into the economies. if you look at japan, anything that has in ingested has been put back in the boj. very little cash is finding its way to the real economy. it could be different, and while most of the money is not going to find its way in the economy, therehe will be enough liquidity to help

things. >> let's talk about japan. a report from the government mentioned the fun. more will be put into domestic shares. finally moved to what everybody suspect they will do? japaneseeason to buy equities but another reason outside of economic fundamentals, no? >> i think it has been expected the boj was going to do more. it has been talked about a lot in the last few months. one reason japan has fallen theyer was the fact that cap 12% of japanese equities. 12 for six equals 18. 18% is roughly what they owed. mean there is going to be a wall of money walking in one morning?

it will take time. >> when i look at the stoxx 600 here in europe, 90% is now the 50 day moving average. i am watching this at home. what does that mean? >> it means if you were worried about half it valuations, we have -- profit evaluations, we have readjusted. we see it can be mixed. the weaker euro should help. as we look at the next 12 to 18 months, we do need qe. assuming we get the liquidity we , it gives an interesting market to look at going forward. >> you are worried about valuations. what about the stress test results this weekend? we will talk about that after .he break the battle for the budget continues as france sent to --

said that finance minister to meet with his german counterpart in berlin. stay with us. we are "on the move." you can follow me on twitter. we are back in two.

>> welcome back. this is "on the move." let's talk about banks.

bank out the stoxx 600 index. look at this index since 2007. it is still down nearly 60% from the precrisis peak. .his weekend we get the check isn't the reason to worry or the final obstacle before the recovery? i look at that chart. it has been bouncing around for the last five years. have we reason to worry, or is this the final hurdle? banks have regulation. we saw that on both sides. u.s. banks ended up outperforming because they were fighting back assets, which isn't necessarily going to happen in europe just yet.

used as anhas been excuse to not by the banks. , theore work we have done banks have raised a huge amount of capital in the last 12 months. mix of capital ratings exercises. he have found the position was a lot lighter than it was. even in the last selloff you can see the banks have outperformed. they have performed a lot better than you would have expected given the volatility. we have so much momentum. the exercise needs to stay credible, but there are going to be small banks on the periphery. we are not talking about the gap in italy and spain. >> is there a reason for the positioning?

that there is a risk one could fail the stress test, or that we have had so much time to prepare that the final results are not going to be that remarkable at all? >> there is always a risk. exposurerying to get versus buying the shares? fact we have moved away from the levels we were anticipating as recently as a few weeks ago it does feel like the positioning is that much lighter. not a lot of core positioning either. >> let's talk about going forward. let's say none of the big banks fail. you just mentioned profitability. are they ever going to be profitable in the same way the wall street banks have been? are we going to get to that precrisis peak of 2007? is that wishful thinking? >> that is probably too

optimistic in the short run. you would need qe to property work, the companies start doing significantly better, and then you start writing loans. it is not something that is going to happen in the next six months. something worth keeping in ion, but we need qe to work. >> the somethingse would be along the lines of another banker. no big surprise for you? >> no, and i think widely suspected by the other investors. >> we have to talk politics. i want to turn to france and germany. french economy ministers have trouble to berlin to meet with their german counterparts. pressure builds to boost government spending. hans nichols has the details. today?y going to get on

>> they may, but it is heavily couch. here is how they have been phrasing it. one of them told french radio they have been working to maybe france,tural reform in and france would get a commitment to invest more in their economy. he told a newspaper he wants an billionnt of around 50 over three years in addition. that was yesterday. the german economy minister said he wanted to see continued deficit cutting. he wants to see that balanced budget. he said there was based in the budget for additional spending. be in a bit of a standoff. we are talking about how much

germany should be spending and less about what france should be spending.t structural when you look at what the austrians and dutch have in saying, france is clearly breaking eu rules. percent next year. we still haven't heard really strong criticisms from the germans. what we are hearing from the french is a need for germans to spend more. remains.estion you look at what is happening in germany on the cusp of recession, and you look at their budget. they have a budget surplus. what is the tone mike in germany? are people starting to think, maybe we do need to change course? >> there is concern about france. germany's biggest trading partner. germanye goes south,

may dip into recession. we will get those numbers in three or four weeks. is what isstion germany get out of it if they end up spending more? there is speculation germany is readying a plan to have structural and deficit cutting measures put in place in france. i'm not so sure how the french are going to take to that, this idea that germans are writing their budget. we will see whether they paper over differences and whether they are smiles and happy when they come to the cameras this afternoon in berlin. >> rate work. think you very much. still with us is the global head of equity trading strategies. when you are building an equity trading strategy and you listen to the noise, when you hear things like the bundesbank saying the european union should

reject the french budget, when you hear reports that actually angela merkel would not like sarkozy to return to politics, when you see this that playing out, do you look at europe and say, this has years and years before they ever sort this out? >> it is probably a consensus that the euro is not necessarily the best invention. as a european person i believe in the dream of the euro. i think of the work they have to do to maintain it. highlighted, they have been making more noise against france. he has been making more noise against the ecb. there is a link. germany does need to help and bring a bit more money to the table, but they are not going to do it for free.

last four or five years show that italy and spain could do a lot more work and france needs to do a lot more work as well. interestingto be how both parties end up working. >> let's go back to the selloff. to auch of that was down concern about another recession in europe and the concern about europe's ability to ever stimulate the economy? can we put much weight on that? >> it did they are role. things -- it did play a role. we have several things coming together. a lot of the good -- the liquidity not being injected, the race was supposed to be taken by the ecb. that was delayed.

hedge funds was way too high as well. they have gone back to two-year highs. you start adding some noise from the fed -- isis, ebola. a list of issues. i am pretty comfortable we would not have seen what we have just gone through. that the risk was too high, it took the system to make it shake. >> did it change on the basis of what you have seen? >> the things we wanted to see were oversold conditions, which we reached early last week. we have not negated these conditions. is theond aspect leverage. we think the leverage is starting to come down.

we do expect ongoing volatility. we think the worst is behind us. >> sovereign qe and europe, this is my final question. when do you think they are going to be able to execute? >> the beginning of next year. one of the issues is the ecb will meet one week before. i think one way mr. drawdy was trying to play it was to be able to say it is not enough. therefore there needs to be more. as we go into the beginning of next year, i think it becomes a lot more likely. >> thank you very much for joining us. on the move, it is adidas. shares are up 5% this morning. there is a report of a possible

$2.2 billion offer for reebok. decline of the ruble, but russian president vladimir putin says not to worry. we will bring you the comments later this hour. stay with us. we are back after a short break.

to bring you up to speed. adidas is rising 6% on speculation a group of investors are planning a bid for the reebok union -- unit. by a hongwill be made kong investment group. down after there company missed analyst estimates for a third quarter. sluggish demand in russia and china weighed on earnings. the company says it is not satisfied. s&p shares are also lower after announcing first-quarter profit that came in below estimates. towards access. with an effort to intomore aggressively

cloud technology. glaxosmithkline says it is accelerating the development of a vaccine to treat ebola. the first rounds are taking place in the u.s. and molly -- mali. if successful they could begin vaccinations in guinea and sierra leone. mostting with the firm famous but seeing promise in a we spotcalled facebook. the next big idea of whether that big idea is in europe. here is a picture of the markets . ftse 100 pretty much dead flat. 0.4 2% lower. the stoxx 600 still closed for a fourth straight week of losses. the longest run of losses's june of 2013. is it all about the fed again?

qe is set to end next month. move" will be back after this short break. ♪

>> welcome back to "on the move ." i am jonathan ferro. we are 30 minutes into the trading day this monday morning. this is how things are shaking up. lower am a down by 37 points. big friday.fter a despite that, mark barton, four weeks of losses? >> before i go against the grain and tell you about three companies rising, electrolux, they make washing machines and third consecutive

increase in quarterly profit aided by improving demand in north america. sales advancing 6%. the biggest rise since april for up by 6.5% today. the wall street journal says a group of investors are planning to bid 1.7 billion euros for adidas reebok division. amid competition from nike and the smaller division under armor. and new track oh, the biggest gainer in europe today. eco, the biggest gainer in europe today. a maker of fish feed. itanimal feed company, and

is a closely held dutch company. they've agreed to buy it today, up by 39% for 2.7 billion euros. eurosolders getting 40 per share which they 42% premium to its closing price on october 17. electro and adidas also trading high. >> thank you mark barton. here are the top headlines. the biggest surge more than a year this morning as the pension fund will boost domestic equity. rebound from a three-week losing streak on the index and meanwhile, japan's minister of trade and another resigned on the trade -- allegations of misconduct.

according to a new survey conducted by the property website, values in the british capital increased 7% from september to a record average of just under 600,000 -- 600,000 pounds. russia must credit rating has been cut to the second lowest by growthecause of slowing prospects and an erosion of reserves as sanctions continue to weigh on the russian economy. conditionso accept to end the sanctions. -- they refuse to accept conditions to end the sanctions. president's appearance at the asian summit in the lawn. --milan. >> what do you think about that? why is it happening? is it the world economy, the

price of oil, and if you think it is the price of oil, is it as some people are saying, because the price of oil is being manipulated by saudi arabia and the united states. regarding the national currency exchange rate, of course one way or another it is connected to the state of the economy and the russian economy, one way or another it is tied to foreign markets. their international global situation particularly with regard to trade and oil and resource prices. declined, but it is reflected on the economy and therefore the national currency. i want to stress that russia is one of the nations with the largest gold reserves. the bank will pursue a balance , this meanslicy

that it will ultimately use elements of a floating exchange rate and will not spend its therves mindlessly, but reserves is sufficient to adjust the level of the national currency. i am confident that one oil prices realign and the national currency exchange rate, the ruble exchange rate will also shift. >> back from the lawn and joins us in the studio -- back from milan, and joins us in the studio. >> can we put it down to oil? >> at least he thinks it does. he says we will not spend our reserves mindlessly and i think the reason he thinks he can say that is because he won't have to. he thinks that oil will rebound and is calling the floor for oil. interesting that he shares the view, the first is that he says oil-producing companies --

countries, need roughly the same oil price as russia, between $80 and $90 per barrel. and shale producers in the night's states, their breakeven price is $80 a barrel. as soon as it gets close to 80 they'll stop producing because it is not profitable and they will take it off the market and that will push up the price. a conspiracy theory, you might say, that saudi arabia and the united states are manipulating the oil price. i put that question to him, does he believe in this himself? and he said, if it is a conspiracy, -- if they are doing this, than they are only hurting themselves because of the two reasons we just discussed. he dismissed it. you get the sense that he is relatively confident that yes they may have to adjust the budget a little bit, he thinks oil will come back and remember

as the ruble the kleins, which he seemed -- declines, which he seems comfortable with, that becomes an issue as well, the oil falls less money into the coffers, but the ruble falls, -- >> a bit of a hedge. oilhey are selling their and gas in dollars. >> which they are talking but changing. >> always good index -- >> what happens in regards to russia this week? >> an awful lot, you have a russian submarine in swedish waters, off the coast of stockholm. the swedes in one of their biggest naval operations, they think they heard a sub, a russian sub in swedish waters and they're looking for it with hundreds of ships, soldiers and 30,000ters with her

islands off the coast of sweden but it may take time. the russians say there is nothing funny going on and have denied they have any ships in the waters. there is a bit of a hunt for the red october, so watch that. quickly, after spending a couple of days and speaking to president putin, he looks remarkably calm. was on him pressure to the summer and we are closer to winter, is it starting to change, a c more leverage as europe slows down -- is he getting more leverage as europe is thatwn? >> my sense he is comfortable with where the sanctions are now. of course he would like them removed. as we heard from the russian foreign minister, not at the expense of the decisions that russia has made. the europeans don't want to take

the sanctions farther than they have. we have entered a. of stasis, things will knock it -- we have entered a period of stasis. things will not get any better, but they will also knock it worse. get worse. vincent the lori is seeking control of the company, the stock up almost 6%. story in "on the move." stay with us. ♪ >> >> welcome back to "on the

move." i'm jonathan ferro live in london. biggesthe industries conferences is taking place in london today and the focus is on finding the next a disruptive. capitalists, i'm sure you know the firm very well because of its early backing of mark zuckerberg and facebook. bet was it, a $12 million on a website in 2005, the website became known as facebook and the bet was worth billions. my question is, was that investment opportunity good for europe right now, is it somewhere in a board room? interesting about

europe is we've seen in the past three years that it is easy ball to generate a multibillion-dollar outcome. last year with one of our investment companies called super sale, they had this game with a $3 billion outcome and enormous potential. company with the billion-dollar outcome and young did, this ecosystem has shown it can create a multibillion-dollar outcome. i think the more time, the bigger it will be. >> let's talk about your investment, is that a alien dollar outcome as well? -- is that a billion-dollar the way theell? >> company works, if you are driving from london to manchester, you can go on the marketplace and sell them for 15

pounds if you are the passengers, up to 70%, which is where the trading is going. with companies now they are in 13 countries and they have 10 million members, a tremendous volume. >> talk to me about the business model, you can say it's a hippie thing and students will get together and maybe they travel him a how strong is this business model? travel, how strong is this business model? , what makes the big difference in i.t.,itchhiking there is a notion of trust. on the trust side you know who you will travel with. that is very important. side, beingdity online you don't need to be on the road waiting for someone, you can find them online and make sure they will pick you up

even if it is a mile away. >> are there headwinds to blah blah car? is -- noy they operate one will prevent you from taking a friend in your car, there is no regulation hurdle, we are not disrupting the taxi industry, this is for long-distance trips of traveling more than 100 miles. it is just a way to share the cost and we don't see the same headwind as over. -- as uber. >> it or this word so much, but a lot of people talking about fin tech disrupting the bank industry. you can call it a bank killer on one side, that what i see them doing is a glorified credit card. it is a supplement to their existing ecosystem. in your mind can they ever be a new blockbuster profit stream.

>> what is very interesting about apple pay, the consumer can go into walmart and pay with you cane, and one side pay on a mobile application. 50% of the transaction is happening on mobile. that waves the hurdle of entering your credit card. now with apple pay and one touch, any app can make a transaction service. as another tremendous element for their ecosystem. >> where is the money? >> on our side we see a lot of investment in companies around the system. with stimulus payments, a lot more transactions will happen on mobile and we see that. mentioned financial services

and how this is disrupting bank, we see another area where this is known. this is happening for several reasons. one because of the emergence of mobile, and two because of can be used to offer credit diverse this and three because of crowdfunding. frome can access funds consumers. they're doing now more than half $1 billion of transactions and if you are a consumer, you can go there come a give 10,000 pounds and get 7% interest. andf a streamlined process in a matter of days you can get a loan for your business. i want to talk quickly about the venture capital business. i'm sure you get your buzz out of finding the next investment opportunity but you pop your

champagne when you get the big return off the bat, you see the door starting to creek close on exit opportunities if it works to be an ipo? >> our average investment cycle is seven years. if it doesn't happen tomorrow, it can happen in a few. as long as there are enough growth drivers in tech, we're doing fine. that's what we are looking for. so what happened in the public market may go out the window for but it doesyears, not have a big impact on our business. >> are you finding opportunities to put money to work echo -- work? >> we seeing a lot of opportunities right now. >> thank you very much, or to have you in the studio.

here are some companies on the move. pilots begin a two day walkout and the disruption will expect long haul and medium haul fights. thelatest walkout adds to flight cancellations from earlier this year. they cut their earnings forecast through 2014 and next year. vincent vilore is seeking to boost his stake in one of the world's largest advertising companies. e group is offering a 19% rhenium. , to have 36 -- premium a 36% stake. sales are down 17% in the nation, 4400 people have died in the latest outbreak, mainly in west africa. stay with that story, the u.k.'s

biggest glassmaker says it is working at an unprecedented rate to get a vaccine to treat ebola. more details. >> we have to wait and see for the data, what it is suggesting is they are seeing some hopefully positive results within the phase one trials. developing a vaccine is quite different to developing a new drug, where it can only ever volunteers.lthy it is a protective strategy. either eugenic, it gives your body the potential to fight an infection and how safe it is. the next stage goes to phase two, normally a vaccine will take a long while to develop but

clearly there able to go out and have an opportunity to test it on frontline personnel. >> typically what is the time period? >> if you take it through all the regulatory hurdles before it can be used in a true -- real-world setting, then it could be anything from 4-5 years to 10 years potentially, looking at the dengue vaccine. here we are dealing with a virus that only has one main strain. it is more likely than to build to deal with it and protect against it easier. time will tell. it seems to me that they will be able to get the product used for protection in this current outbreak way before it is approved by regulators. science, thehe tragedy is starting to spread,

but to develop a vaccine, is it straightforward? be, depending how clever the viruses. that is the big issue at hand. some viruses, like the flu virus, you take every year. every year you have to create a new vaccine. withwe are not dealing something that infects large numbers of people which is where it gets its mutation dealingties, we are with something that kills itself. a 70% fatality rate, the virus can't re-spread. bloomberg --a. of roselli, thank- you. >> much lower on the dax right now. on by 1%. 96 points lawyer -- lower. stoxx 600 still close.

despite friday and a one off rebound, where do we go from here? plenty to discuss. back in two.

>> let's talk stocks as rumors adidas and about

group of investors looking to buy reebok. >> cording to wall street journal, a group of investors from hong kong and abu dhabi are looking to take reebok off of adidas's hands. or what adidas paid in 2006. 3 billion euros. this is almost 50% less. it has been under pressure for the entire year, stocks down some 40% and the issued a challenge in the states and the challenge in russia. they still haven't increased their market share the way they wanted in the u.s. so they could challenge nike. some of their key basketball players have been sidelined. if they do get rid of reebok and the company is the climbing to comment, that could be an indication they're trying to focus on football and basketball and get out of the crossfit market. >> adidas up almost 5% this

morning. the dax down by 100 points, yields are lower. yields in italy higher. a little bit of diversions again. plenty to discuss on "the pulse ." ♪

>> a group of investors, a bid for reebok. france's richest man says don't bet against him. can he handle europe as leaders meet? >> good morning, you are watching "the pulse." we are