two hours time. the world's 20 largest economies convene in australia this weekend. note, that'sorning what we're watching this morning and this is the futures market. futures up a nine points, dax futures up by 25 points. recession,avoids france gets a little bit better and 89% of the global polls at is europe's deflation greater than the strength of inflation and angela merkel's policy not rubbing that well with the global culture either. policy is too restrictive. that is a number that they will make that message at g-20 but will anyone listen to it?

equity markets are up a little bit higher. brents, week eight of decline on the brent market. the longest losing streak since 1988. do anything? volumes accrued 47% against the hundred day average. not only do you see prices decline you are seeing an aggressive shift in terms of volume. if that is not enough to finish he says he quite likes itvron in terms of the oil there will be more deals done as a result of these moves. copper is down the third day in a row.

commodities are going to set the tone and the agenda for the potential deals that will be done in 2014 -- i am a year behind myself, 2015. charoline keeping the numbers stable, 2014 deliveries 2.6%,ed to be better, up ,he telecom conglomerate third-quarter sales beat. .hey raised the 2014 target cac up 4/10 of 1%. >> france winning this morning. that is the market open on gdp

day here in europe. recession with growth at 0.1%. nice to have you with us. i was thinking about it this slow walks less of a to the edge of the cliff and more of a slow crawl to the edge of the desert for you see a mirage that looks like recovery. >> to me it looks like waterworld economics. , with trying to solve liquidity, growth problems and structural problems so like you said we crawl around and expect .1% later on today. we crawl around zero but do not have that coming back in investments or the growth europe needs. do not have a lot of time left because the expectations for inflation are falling.

1% or around 1% the money is going forward. we are getting pretty close to justification here. >> that is the interesting part of all this, japan has a over 65.n were 25% is >> you are fighting demographics and lack of reforms and in the banking system europe has not completely fixed the banks. 10% failed the test but another 24% which were a narrow pass. one third of the banks is not able to land and you need more structural measures. times -- 32ee trillion and assets. you need consolidation. in japan the three things that

created the lost decades were demographics and then the banks took 10 years to fix and reforms on investments. they were trying to hide the problem instead of fixing it. europe is trying to fix it what it is taking too long. grind intill a slow terms of growth. brent is firmly below $80 a barrel now. should we be looking at the demand side as well? andly it is the demand side em and china is winding down. globally we have europe in a stagnating market and not able to sustain the investment. much leverage in the pilot sector in brazil or and russia it's too much lower

in the public sector. in germany the world economy is flying on one engine. europe has done negative ,pending all of sees, austerity and now we need some sort of change. we are at this 300 billion investment plan this weekend. >> you and i will talk about that after the break but quickly i want to talk about markets after the collapse in the oil price. do you see it feeding into the credit market? in the u.s. high-yield market where energy is 20% of the market there has been a spillover. now there has been a normalization but u.s. junk bonds are affected. will it make the market collapse?

no. they could create a higher full rate in the next few years. i do not think the energy prices at these levels are sustainable. i think it is sustainable. will talk about the investment dynamic versus the trading dynamic. here is a look at one stock on the move this morning. in soonernings coming than estimated. up by 2.5% this morning. the merkel mandate coming under fire. haunted by theg specter of stagnation. live in australia after the break. here is a picture of the general equity market. this is where we are at right now.

join us after the break for more. ♪ >> let's kick off things with

the meeting that everyone is watching. arriving in the

australian city of brisbane. chances of actually achieving these targets? it is always a case in some it's like these full of noble intent and find words but of course the leaders have to go home and make it happen. has the goal of lifting global growth by two percentage points and doing so would add $2 trillion to the global economy. already a note of skepticism. in this case it come from the oecd secretary-general who spoke to bloomberg news earlier this morning. sluggish economy

and the prospect of a vibrant growth and recovery in the medium to long-term are not there. not yet there. we really should make it happen and i believe that the ground has been prepared here in brisbane. one thing that has made it back onto the agenda after being --troversially left off this deal between china and the u.s. to reduce omissions has forced it act onto the agenda. it will be very hard to ignore the climate here in brisbane and it is a very warm today. they are expected to hit a high

of 42 degrees. allen from bloomberg news, thank you for joining us. a puzzle of european growth at the top of the agenda. question is how do you attract lasting investment in the european economy. the head of macro product research. the big difference between trading europe and investing in europe, let's start with that. >> europe has been a good trade. we have been long on european bonds, that the idea is that i am buying european assets because the ecb is protecting me . it has been a good trade. are you investing in europe, are you opening a factory, are you going to france and buying a

house? >> know, personally i am not. >> there are a lot of obstacles, bankruptcy regimes that are very inefficient and labor laws that make it hard to higher. there are a lot of obstacles to real investment. ireland and spain have done the right reforms but apart from that other countries are uninvestible from a long-term perspective. just ine seen this not the general economy but the corporate sector as well. >> hoarding cash. >> or they borrow in the debt market or by back stock or issuing debt for tax efficiencies. how does this change? >> this changes by reforming the

legal system and the labor markets, which is a long-term story but we have commitment from the governments. you do not need to spend a huge amount of money today. $10 billion in year is the germany surplus. pledged 10 billion which is one year of surplus, that is one airport or two highways. >> we talk about the strictly fiscal policy we asked people which air yet was most restrictive and guess what? 57% responded and said that fiscal policy in the eurozone was too restrictive. about theecently spending plan, what is on the table? billion plan $300 but let's like it fooled the money because some of it is previously pledged money in some

pockets it is hidden, however there are some pieces of news that are promising. bankuropean investment finances projects for lending across europe and outside europe. they have a budget of 550 billion euros and land 60 per year. funded by germany in the u.k. which is very conservative and they have a aaa rating. ecb holdsmple the bank bonds and help to fund a new infrastructure project that would be pretty powerful. let's not forget the market only focuses on qe and how much the market is buying. qe, the u.s. or japan did

this was a multiple of that. that is why here qe is a bit less effective. markets love the happy juice, the wealth effect in europe would be less than the u.s. because the amount of assets is this the next phase of stimulus from the ecb? >> on the fourth of december we will get the ways the ecb will , i'msset-backed securities not sure we will get a big sovereign or corporate bond this september. what to doo decide with growth, spain and 30 to be a plan or infrastructure plan.

we could see some more buying in january. sovereign bonds is something the market really likes but i think a last resort option in case of emergencies, we have the greek elections in february. if something was wrong on the sovereign level maybe it could be on the table. >> i want to finish on sovereign debt. spoke, you made a call about the potential german periphery, two weeks later we got a turn. and the threat came back down again. where are we? >> i don't want to be a bad omen but i think next year we have and the ecb is expected to do more. elections andeek

they have been trading close to italy and germany because people andct sovereign people around were portugal is who is foldable from a debt instability perspective. layerede the most corporate sectors in europe. i like europe, and chile -- into lee -- italy and spain. >> the gdp numbers come in a little bit better than expected. join us for the next month ecb meeting. with talk about bringing investments to europe with the most recent being international the europeand

union -- quickhad to the break, a picture of stocks on the move. airbus. up by higher by over 2%, almost 3% this morning. ♪ >> welcome back to i am jonathan

ferro. "on thelcome back to move" i am jonathan ferro. adjustedhing company net profit to be eight to 12% of sales. gnocchi a as focused on more long-term contracts. china reported a $9 million loss for the third quarter and china encourages a possible merging of the store network with tesco in china. sales, to be stable or drop by 1% at work. the french conglomerate said construction of broad is helping us with a slowdown and a

lingering price war. another beat out of france, the gdp came out above estimates and airbus's third-quarter results also above average. joining us now from paris, caroling. line.ro >> the airbus is up this morning almost 3%, beating estimated recorders with 820 million euros -- with a hundred 20 million euros. llion euros.mi that is a positive sign for airbus. one of the reasons for that is the higher value aircraft delivered eight planes the flagship double-deckers.

int is bringing more money because this aircraft alone costs $414 million. they are receiving new orders from the a320 which is their fastest selling airplane, just this month they had a $10 and an order from china $25 billion order from india. they are maintaining targets for revenue and deliveries should be stable. on the plus side, a lot of people told me that this company will be one of the ache benefits of the euro. for me i want to know what are the main challenges? the exchange rate is something to look at. 41%r net income dropped

if you take the exchange rate into account, but the main challenges will be to deliver their next generation of airplanes. they will deliver the first a350 to qatar airways next year. is costing division 6000 jobs and has delays. they are going to re-assess the program. investors like what they hear this morning, we will talk about that missing tiger in paris later. two largest's economies return to growth in the third quarter.

we dipped a little bit lower and are down by .1%, the dax up , the cac are up. stay with us. ♪

>> welcome back to "on the move ." i'm jonathan ferro at bloomberg's european headquarters in london. this is how the markets are shaping up this morning. the ftse 100 around session lows. the dax comes off session highs. big news this morning, the headline is that germany all voids recession. france gdp comes in better than expected. we look ahead to the gdp figure out of holland and the eurozone gdp figure. stay tuned for that. let's get some stocks on the move. >> one big mover on the stoxx 600 is a norwegian media

company. check that out. 26% higher. why? all about those classified adverts that businesses take out. they are teaming up to establish a joint venture in brazil, thailand and indonesia. this joint venture in terms of classified advertising will save them 300 to 400 million norwegian krone. bouygues up as well. up 4.4% helping the cac over and france. why? the french construction company isn't doing well in hometown. construction still not picking up in france. internationally, it is driving forward. their outlook for 20 sales is going to be better than expected. down about 1%.

construction abroad really helping offset the sluggish nature of home. bouygues driving higher in france. fors life is on the lookout the downside. off by 2.7%. the insurer is seeing a 5% stake in itself being sold at a discount. of the stake is selling this. aregerman insurer says, we worried about this low interest rate environment that we continue to see. the ecb nowhere near having to think like the u.s. federal reserve, still having to keep interest rates low. the german insurer wanted to cash in, to sell that stake. they are raising more than a few hundred million in terms of money. it does send swiss life down a bit on the discount. >> thank you very much, caroline hyde. we have seen returns to growth for europe's two biggest

economies. expansion revealed that the recovery in the region is still slow. we have dutch gdp as well. on the quarter, 0.2%. that is a mess. quarter revised lower as well. 0.6%. dutch gdp just missed. the big headline is that germany of voids recession. let's bring in hans nichols from berlin. , good news for merkel, still pretty low. >> this is what u.s. treasury secretary jack lew is talking about when he warns about a potential lost decade. you have growth in germany and france but this is marginal growth. look at the french numbers. 0.3% increase. they revised their figures from last quarter and they had contraction. here is what their finance

minister said about it in terms of drug -- in terms of job growth. economic activity picked up slightly but it remains too weak to ensure the job creation our country needs. germany, we shouldn't discount it yet. it came in right at expectations. remember, this is 28% of european output. a broad section of the economy. will get portugal in a little bit, then we will get italy and eventually the european-wide figure. it looks like they are going to go ahead and reach consensus around 0.1% on economic growth. a couple of numbers i am looking for, portugal and spain. what is happening on the periphery? italy, they have had 12 quarters with zero or negative growth. the italy story, is it going the way of france and some of the

other countries or is it looking more like a healthy country like portugal or spain? >> thanks for that. let's bring in my next guest who says the euro is like a tightening noose on growth and it won't loosen its grip. richard jefferies joins me now. great to have you with us. let's start with german gdp. thatys a lot about europe germany of avoiding recession is the best we can do right now. a lot of people were talking about the prospect of a recession and how it would change the attitude of german policymakers. right now, you have a labor market that remains strong, an approval rating of angela merkel that remains high. are they going to change course soon? whack's maybe things have to stay as dull as they are for longer. they haven't got the headline. >> i wanted that headline. >> the fact is they are struggling to find any growth,

not just in germany for throughout europe. at those economies individually, they are capable of growing around the 2% mark. they are struggling to get the 1% on an annualized basis. that is highlighting the problem. >> let me talk about the euro. the exchange rate monetary union? plaque i think it is both. -->> i think it is both. that is like blocking the differential on a four-wheel-drive car. it is different if you want to turn a corner. that is a problem. they want to turn the corner, who had active growth. i would say you is highlighting the amount of structural reform required in the southern european economies and france. that report is not going to come quickly. this looking for 1.10, 1.15 next year.

is that going to make a difference? >> no. the problem for germany is the export markets are week. some of the export markets are on its back doorstep. it wasportantly, exporting into asia, particularly into china. those economies are slowing down. why are they struggling? they are not exporting into the west. it is a circular argument. it is an argument that you can say, the u.s. has managed to break free of that. the u.k. is showing signs of breaking free, / -- free. >> how does this play out in australia? up the chart of the chinese currency against the japanese yen, is that a preview of what we can expect in australia? >> the solution to this is not

in the valuing your currency. all you do is start the game and force others to do the same. if japan continues, how is korea going to respond? all that does is destroy margins. that is not the answer. the answer is to try and stimulate domestic demand. coming back to europe, that is what they are struggling to do. >> you said that is not the answer but would you say that is what is happening? this fight for inflation, not the solution. they are going to meet in brisbane and say, we are on the same page. we are trying to create inflation. but they are doing that through the foreign exchange market. are we going to start hearing about currency wars? >> inflation is not the answer either. people are worried about deflation. influence hasry

been there if you look at the economy in japan. a lot of what we are seeing is disinflation. the fact that energy prices are falling gives economies in the west with stronger aggregate "ask let'sost their talk about markets. how does this impact the way you view asset classes? the trade over the last five years has been not to fight the central bank. the ecb says they are going to create inflation. why do i want sovereign debt? >> why are german bonds, 10 year bonds yielding less than 10%? the answer is because there is so much liquidity and people want to park that liquidity in .n asset that is nominally safe sooner or later, that will reverse. it will happen if inflationary

trends start to pick up. >> as you look at equity markets in europe against the u.s., you have one equity market that is trading on pretty weak economic fundamentals and another market, he u.s. where is the preference right now? >> the preference is looking for income. in terms of which area, i think the preference is still for the united states. it has started to regenerate in a much more meaningful way. while european economies are , it is difficult to see the european markets going anywhere. the u.k., between the eurozone and the u.s., it looks more attractive. >> final question, g-20 kicking off over the weekend. everybody comes out and says, this is a waste of time. what is your view? >> it is not a waste of time to

get people together. if you are looking for a magic answer, of course there isn't. if there were, they would have done it. there is no rabbit. >> maybe a little magic in europe but it is not there. richard jeffrey, thank you very much for joining us. coming up, we hear from the ceo on how a british supermarket aain come plans to compete in tough retail environment. christmas is going to be a competitive opportunity for everybody. ♪

>> welcome back. this is "on the move." airbus profit gained 16% in the third quarter as it sold more aircraft and brought its superjumbo close to break even the year. the company says sales stay flat for the quarter but net income drops 41% equals a foreign-exchange swings. blackberry shares jumped up as the smartphone announced a new partnership with samsung. it is the first time the companies have teamed up for a major product. blackberries ceo also met with the makers of chinese smartphone xiaomi. afterr shares fell standard & poor's gave the company a credit rating of

double d-. s&p also said twitter's financial risk was "significant." twitter has been under pressure because of slow user growth and management turnover. reported a drop in quarterly sales yesterday. the supermarket joined the other three u.k. grocers in posting declining sales. hyde has been speaking to the ceo and asked him about what he things his competitors are doing. goodness, they can have some traffic, but as we said earlier today, it is a form of quantitative easing. at some point, you have to change. , atting five pound vouchers some point, somebody has to pay for it. >> what do you feel like about the u.k. economy?

are things going to improve? economy is in a great position and that is good to see. have.k. is starting to green shoes. unemployment is at an all-time low, that is good for the country. perspective, back to one of your earlier points, this is one of the businesses that will lose. we have a huge piece of change potentially next year with the general election. voteeneral public will with their feet in terms of which way they want to go. we will see how the economy continues from that decision in may next year. >> let's bring caroline hyde in now. , supermarkets and qe, what is going on? >> he spoke about a battle

continuing to rage in the industry. we know what the battle is. discounters coming in and snapping up 8% of the market. who has lost out? tesco, sainsbury's along with morrison's. is the only of the four players that has managed to increase market share. like for like sales were falling. he talks about his five pound voucher as panic tactics being played. he says this is a shock wave that has gone to the industry. they are trying to say, we saw this coming. we saw this whole shift in the market two years ago. that is why they said, we are putting a billion pounds into reducing prices. >> and everyone started to copy them. >> sainsbury's yesterday said they are going to put in 100 50 million pounds. a drop in the ocean is what people called it. is companies really

worrying about the future of this industry. i asked, will there still be four big players in 5, 10 years time? they said, probably not. the companies i grew up with aren't there anymore. if you have got trust, consistency, he is talking about tesco. >> you talk about this negativity around u.k. supermarkets. something notfind negative about them. where do we see the growth for asda? >> it is about innovation. they have gone big in terms of using. the london underground, you can space to collect your shopping. they want to do click and collect garages. outaven't seen asda roll the smaller stores like

sainsbury's have on every corner. they stay on their big plots of land but say, we can provide your goods in a nearby locker if you need it. that is their new way of innovating. it is all about trying to scale up in the south as well. they are not known for quality and they are not known for the south of england. christmas?ckly, >> they don't play too much in that tactic. it will be interesting to see where they go. i think for them it is all about price. what they want to be known for is the cheapest price. think it will be interesting when you go to christmas and want to trade up, get champagne, something tastier. that is where they need to fill in the gaps, quality. >> thank you very much, caroline

hyde. breaking news out of china. gainswill weigh capital for the shanghai hong kong stock exchange link. that is set to open on monday. it will give investors unprecedented access to mainland shares. and a little bit more incentive to invest. takes ae break, bugatti different road. we talked to the company's president about their newest venture, a lifestyle brand. as if the car was not enough. ♪

>> bugatti is branching out. the high-performance carmaker is opening a lifestyle brand in london. guy johnson caught up with the company's president. take a look. >> the reason we are in london is no metropolitan area around the world sells more bugatti's then london. our customers are based in london or have offices or a parking space where they can deposit this car. we think this is the right location to open up a store. our customers, when we talk about the bugatti, are divided into three regions.

,ery important is europe especially great britain, germany, switzerland. then we see u.s. as one third of the market, and the middle east. we are already starting to sell bugatti's in china. the chinese market cannot be neglected. it is tough right now but i think the spirit in the market and the behavioral structure of the company or is -- the customers is of the same way as developed regions around the world where they have great demand on purchasing behavior. we see a bright future for bugatti in china. fairlyare talking positively about the brand. we have a lifestyle story being developed. what does it look like when you start doing something like this? do the margins improved, do they

go down? there must be a baseline benefit. sure that ourely ideaidea, the boutique that we are following up around the world, we will see about 30 likeexclusive boutiques those around metropolitan areas in the next five years. this will, of course, pay into our pockets. >> guy johnson joins us now for a look ahead to "the pulse." >> you and me? >> maybe francine. >> fran is not so convinced about the idea that you want to buy a handbag with a bugatti logo on it. this is basically vw selling handbags. do you think he was thinking, we need to sell more handbags? i think they have only got 10

more to sell. we are waiting to see which name they come out with next. " weerms of "the pulse, are going to talk to the editor in chief of monocle. as leaders come together in australia, they have a survey talking about soft power. america has come out soft this time. germany has slipped to number two. it is football, food, those kind of things. the food helping out france. those numbers may be something they don't want to talk about. maybe they want to talk about football. that is where europe is good. >> we can get skeptical later on. thank you, guy johnson. here is a picture of the markets. we are right off session highs. the cac 40 down by almost a

point. ftse 100 down by 0.25%. if you want to talk markets, i'm on twitter. enjoy your weekend. ♪

>> abe has landed, merkel is on route. global0 meets to talk growth. a bloomberg poll shows the global economy in its worst shape into years. >> more evidence of that today as germany barely misses a recession while france shows some signs of growth. >> despite all this economic loom, find out why football and food mean that europe still wields massive global influence. soft powerg to talk with the editor of monocle, tyler brule.