the headlines. today he you foreign ministers -- eu foreign ministers meet to russia. futureslooking at dax down 86 points. futures on the stoxx 50 down 26 points. let's get to manus. it is all about japan. >> it is all about japan. just under 3%lied , all predicated on the fact would comed -- abe to the country. you are looking at a substantial reversal. it's not just the headline number within japanese gdp, but it is also about capital expenditure. it is also about the stocking.

that is what rip the heart out of the overall gdp numbers. about destocking. 19 sessions of gains on the topix. you get to see what happens behind the scenes in terms of having to choose the currency. i cannot find my ruble. that is what i was looking for. this is live tv. 47 point 38 is where we are. the ruble is continuing to fall. 38 is where we are. to talk about 1998. they are going to talk about the last time russia defaulted. catastrophe that ensued because of the decline of oil prices, those are the words of

the leader of russia, not mine. with an comes out contrarian view. they raised the equity market to overweight from underweight. retail sales will be out next week. the bank of england minutes will be out next week. we like polls. growth in the fourth quarter in to estimatesding will be 4/10 of 1%. in france it will be 3/10 of 1% for the fourth quarter. draghi speaking today. the yen is stronger. the dollar is down. some individual names i have been keeping an ion. -- an eye on. they is discussion that may be considering a 700 million euro bid. we will keep an ion that. they are denying they are going

for any kind of capital increase. this is interesting. market we are going to take the business and split it into. nothing shocking. it is what will the valuation be. , you have ane share share in the new company. a couple of individual stocks. they are down over 1%. there is the ruble. that is the dollar rising, ruble declining. that momentum is changing again. the dollar index is just a little bit softer. what you have got here is good economic data. the dollar struggling to make it above their. this is the favorite line from the day. the dollar ruble falling. canald rather have root

than five the ruble. -- all make are a mara to- paul mcna discuss. >> japanese gdp dominating headlines. a surprise contraction for the japanese economy after the previous contraction in the japanese economy. you add it up, and you get the japanese recession. a lot of people are looking at 1997. that was the last time they hike that sales tax. a lot of people speculating there could be snap elections in japan. you could get prime minister back the nexthing sales tax hike. what do we get? we get japanese stocks down 3%. i am looking at their earnings. the ftse 100 down 4/10 of 1%. about growth in japan.

concerns about global growth as well dominated the g-20. prominent -- prime minister david cameron talking about the risk of a global recession and what that means for the u.k.. that is what is coming. we will talk to prime minister cameron about his concerns about growth. one of the big-company stories this morning, we are going to start with company news. the consumer products company is planning to spin off its pharmaceuticals unit next month. the european business correspondent caroline hyde joins us to explain why. the diverse business wants to become meaner, wants to focus on consumer health care. a $200 billion opportunity for them. cold andl taking our over. medicine this is where the money is.

not is theney is prescription drug unit. it is all about separating their pharmaceutical unit. it is going to be listed december 23, just ahead of a mixtureand called of individual and endeavor. there comes the question of valuations. anywhere from one billion to 4.8 billion pounds is what has been out there. it has been whittled down to the 2 billion pound mark. thirsty investors are. what does it mean for existing investors? what is the outlook for this new entity? addiction tout

drugs. it is all about addiction to opiates. it is her win, painkillers, and the market. painkillers,ine, and the market. generics are coming in competition. they are promising they will areas ofking up more growth. they have new products in development in terms of a nasal spray. they have drugs for alcohol, cocaine, cannabis addiction as well. the question is how big and that unit become. they are expecting profit to fall. where does this company go. it is so diverse. it is not very sexy. they own k y jelly as well. this is a company that has huge amounts of run out. -- huge amount

of products. they want to focus on consumers. >> a bit early. we had to the break. we check on european equities. we opened lower and stay lower. we will talk g-20. we will talk all of that after the break. stay with us. ♪

>> welcome back. i am jonathan ferro, live from the city of london. this is "on the move." let's get back to the big news.

japanese stocks take a big dive after the nation unexpectedly slipped into recession. gdp slipped last quarter. that is the second straight decline. the reading increases the likelihood prime minister shinzo increase.d the next like 97, doesn't it? >> happy holidays. to me in many ways this is very predict the ball. i am not usually one to say i told you so. a year ago i was -- this is very predictable. debt -- the the slowdown in the third quarter you realize it was not a time to on consumers. the prime minister is trying to get japanese to spend less.

this is just a reminder that abenomics is really monetary stimulus. we haven't seen any of the restructuring needed to invest more and pay company -- pay employees more. you realize you have got a lot of work to do. >> if you look at the environment right now in the debate over the next tax increase, where is the debate now, and how does that feed into the likelihood of a snap election? >> i would think the debate is dead. we are to figure out the 1ngover for from the april situation. for me the issue is dead. the issue of the snap election might happen because the prime minister does seem to want to turn to the japanese people and get a fresh mandate for rebooting abenomics. this is a bait and switch

because you could argue he already has a mandate. they want people to implement abenomics. it really isn't about getting support. it is about implementing it. this is a tactic aimed at elliptical opposition. it gives them a warning signal abe will be back for a while. -- around for a while. don't mess with me. >> the only game in town has the bankrnor croda and of japan. thelook at a quarter of population already over 65. is there a recognition you cannot fight demographics with dollar yen? >> absolutely. of gdp, 250 percent aging population. this is a reminder milton friedman was incomplete in a way when you look at the japanese

scenario. inflation and deflation are a general monetary phenomenon. if you look at the demographics and you look at the structure of the country, i think deflation is a rational response to where japan is at the moment. it is fair to say the boj is not getting enough traction. there is not a lot of demand for the again. -- four yen. if there is no use people are not borrowing or lending. it is not going to work. anythingng to not do for the economy, which is why prime minister abe needs to get on with the structural reforms. that is the key. >> great work. thank you very much. i am going to turn to geopolitics. over the weekend g-20 leaders discussed global growth in the australian city of brisbane. another common theme was criticism of russia and president putin.

he bowed out early, and that made headlines. ryan chilcote has the latest on the russia angle. the leaders agreed on a gdp growth target of 2.1 percent by 2018. it sounds great. it is very ambitious. a lot of people are asking, is it achievable? yes, they're in lies the rub. it is always the case at these summits. liesulf between -- therein the rub. an improvement on what finance ministers were asking for at the start of the year. yes, it iss, possible, but they have to implement those policies they discussed. here is what christine lagarde had to say. >> it is great. it needs to be implemented. our job will be to monitor

country by country, action by reform,reform by whether there is delivery or not. we will dutifully report as publicly as possible so everyone can understand who is doing what and whether it contributes to growth and jobs that are very much needed. target age is a long way off, but already the hurdles are piling up. the us trillion prime minister tony abbott was complaining to other leaders he hasn't managed .o get the budget that was unveiled in may. turkey takes over the presidency of the g-20. for the next year is not going to be so much on economic growth. >> paul allen is a busy man.

brisbane is a fantastic place to be. thank you very much. finally a chilly reception for putin at the g 20 meeting. the greatest threat to world markets and will be the biggest loser after the drop in oil prices. what are we expecting out of the the e.u. foreign ministers meeting today? more sanctions on who? >> more sanctions. strong rhetoric. perhaps not what we heard from the canadian minister where he said, i guess i will shake your hand, but you must get out of ukraine or the posturings from the russian president, who left the summit early. when the foreign ministers meeting begins in 40 minutes, we are going to hear rhetoric. what we are going to see is andalled personal sanctions

individuals subject to travel bans. we have already been told most of those people are people that are connected to the november 2 election. russia defending the poll. to see if interesting there is an expansion beyond that to the russian president inner circle or perhaps members of the business community. something that could happen within the scope of personal sanctions. as for economic sanctions it looks like we have to wait for december 18. that is where the leaders gathered. >> it is quite confusing. one minute it is hard top. then it is hugging to wallace. huggingthe story --

koalas. the story? but this is the largest publicly traded oil producer. russia's most indebted company and a company that has been the subject of sanctions and seen access to western capital markets restricted. it has got about dirty billion dollars of debt to repay by the end of next year. 20 billion -- $30 billion of end of nexty by the year. they ask for up to $50 billion of assistance. that money would come from russia's so-called rainy day funds. we have heard the countries economy minister and a finance ministers saying those numbers are not appropriate because they were meant to diversify the country's economy away from oil, but it looks like pragmatism is taking the day with the russian

minister concerned about sanctions. big focus in the commodity markets. a quick check on european equities. equities down across the board. dax down by 67 point. this coming back from the drop in japanese equities after japan confirmed the third largest economy in the world is back in recession. more on that later in the show. startup reports for the first time since it's out to -- october ipo. how long will it last? the german company has sold the rights to pfizer. find out how much money it is making from the deal later this hour.

find out more after this short break. ♪

>> welcome back. it is time to bring you up to speed with some companies on the move. buying theclose to botox maker for 64 billion dollars. a deal could be announced as soon as today. the deal would help -- would help rebuff a hostile advance.

ann powers will be charged by the end of the year according to someone familiar. alstom says it is cooperating in the investigation and has no other comments. h&m reported numbers. sales surged 14%. they could rise even more thanks by zerot collection weighing. -- guest collection by vera weighing. -- want. -- wang. posted results for the first time since going public. fell 13% in the first day of trading. hans nichols has more from berlin.

learn? we what is the top line? >> to sales came in at 260 million euros. it was 180 million just a year ago. that is up a bit. we're still talking about revenue of 520 million euros. this is a company that tried to euros in earlyon october. the market is pretty enthusiastic. yes, the stocks took a beating on the first day. it made those gains back. 2.2%.they are up almost what we are learning today is , whichtfolio companies ones they aren't busy at stake over. i am going to give you one. -- basically an online version of ikea. delivered to you.

revenue is up 60 million euros that year. we have got other numbers in here. jabong up 187%. we have expansionary modes. they are in the process of launching seven new companies this year. that is in a total of 10 countries. divided.it asia, a lotlot of of africa, and all of europe. >> a lot of growth. a very busy business. stock up one and a half percent. check out the market reaction to japan. the the market move at heart of the story, it is all about the yen. we will get insight from the strategist.

stay tuned. you can follow me on twitter. you know where i am. the third largest economy in the world back in recession. ♪

>> welcome back to on the move at bloomberg european ahead borders. bloomberg european headquarters. the dax is down. 40 comes in and there is a drop to the nikkei. world's third-largest economy is back in recession. the economy can not whether the sales tax hike. we will talk about that all stop

the big stocks to watch. >> focusing on pharmaceuticals this morning pulls up record high stock prices up 3.6%. developing cancer drugs to >> so, a big tie up there. of and that was the asset of choice earlier this year. many feel the deal hook up means that they will re-approach further up the table. morning --h&m this eye on h&m this morning.

they are up 1% in october sales they beating estimates and continue to open stores. >> here are some top headlines. the eurozone says teeters on the brink of a third recession and he warns of slowing global growth and said that britain would not waver on dealing with that. he is sticking with the deficit plan and will continue to use monetary policy to support growth. opening a landmark link. outstripped hong kong purchases earlier today. here are the trading limits. this marks one of the biggest steps in liberalizing the financial markets.

japanese stocks fell. 1.6% last quarter. the readings increase the likelihood of shinzo abe decreasing taxes next year. then is dealing with 25% of japanese population over 65 -- years old.stop a massive demographic problem. let's discuss this. jeff, we talk about japan and the demographics. that is of abenomics firing right now. he wants a stronger mandate or a new mandate pushing through

reforms. are wondering if it will ise or not all stop that change for demographics. strategyrecalling the and the population target. that is significantly lower than where it was. there you have it. these are mentality changes that are needed and he mentioned that in his decision to preempt the risks. he needs to challenge the deflation that seems to be perpetual and monetary policy may not be enough. this was in the

cards right now? it has not been dismissed outright, it is pushing things through. this, while not necessarily the selection, it confirms that tax hike. one way or another, we will get there and what i am interested about a he will bring new stimulus package and who will fund that. >> human forecast of 120 next what if thep weakness becomes a symptom of a week japanese economy? when does the psychology start to change? >> two things need to happen. we need to realize that the

rebound is needed and there are circumstances where it is not enough. they are buying a lot of time and japan is having issues attaining self-sufficiency from the middle east. limit the dollar yen. saying thebeen dollar yen is net positive. what we need on top of the internal acknowledgment is growth next year and it all goes back to 100. perhaps it will go back. >> you and i will have a chat about the market.

i put up the tenure and i am looking at a yield. we have a bank of japan that holds 20% of the market. the bank of england is not terrific. they are getting new issuance. what about the funding of the market? >> it is execution error and they said they want resolve. hopefully, they have a system close to asset purchases. from the for perspective, we find it difficult to attack the market. mass, ithave critical is hard to say that the gdp ratio can be tackled. if we have thet,

outflows and the increase of overseas out locations, that encourages all the other licenses to move overseas. 94%, if we can time, you no, over longer have domestics to assist the bank of japan in cornering the market and i think that will be a slow process with that are opportunities. >> the conversation is happening and we are talking a lot about the fmoc.and we do not talk about the bank of japan much. if they want to do more, is he

going to have people against him? whether it is strong enough for the naked japan to say they have to be responsible and act in the best interest of monetary stability. secondly, people question his approach. there are surveys that start to show it rising more theessively, compared to spread right now. you did not have a case against elvish have no rise in inflation expectations. caseoves have a stronger than the hawks. that could change. >> we will wrap it up and bring

it to the dollar yen question. a decisiveas decision by the bank of japan. have you been surprised that? what are the implications? >> we were not surprised by it all stop nobody was position for it. looking for a slight chance. >> the room -- the decline it was 1%. chase they are trying to the specialty around and the question is, how much of a discount is priced at how much as theey be easing economy performs in a way that it does. they have to do more in markets. to be honest, we could get it will result in

structural change? >> always a pleasure. the dollar yen is flat. the strategist at ubs. thank you very much. we will head to the break. a little bit of a turn in the next 15 minutes. the dax is down. the ftse 100 stays low. it is off. more stocks on the move. we look at how the deal and speed up merck. stay with us. ♪

>> welcome back. .his is on the move here are companies on the move. access to had services in the u.k. and they said it would improve the profitable business. carefully weighing the other banks. there is a says merger proposal so far. there was the ecb stress test.

secretly developing a new website to take on linkedin. the website would be called "facebook at work." it would compete directly with google drive and microsoft office. prices rose 0.8% all stop house prices across the u.k. fell ahead of the seasonal winter slowdown. prices curbntum as demand. one of thehing biggest movers in early trading that has agreed to pay $850 million for the right for a cancer drug developed by merck.

sam, investors think this is a good deal. let's talk about the price. >> there are assets that are attractive. this is a mechanism to deal with cancer and we have not seen many so far. it has been on the market for while. is what pfizer is signaling. they need to be in the space. it is going to have to be a surprise for people, the size of this deal. if you look at it from the theont payment or from possible money that can be paid, it goes to $3 billion and is the biggest deal we have.

we look at the deals and the collecting of data. it is the biggest we have ever seen and it is exciting. who got thebout best of the deal. who did? moment, only the future will tell us. there are serious competitors ahead in this game. astrazeneca is a player. they are taking different ways and different pathways. they are competing in this space and only time will tell if they get their money back.

remember that a lot of it is up to future success. has pfizer got more money to put to work? >> there is a lot of cash the generated and they have buy back row grams, generating a lot of cash. shareholders, to have been good at returning cash to shareholders. you need to keep the pipeline going and it would be interesting if they did not decide to go for the big mergers and acquisitions strategy and they cherry pick. >> thank you very much. 3% this morning. thank you very much.

let's check in on european equities. down .2% and the dax is up. the third-largest economy is in recession. we had to the break and leave you with a threat to global markets. it is russia. international investors responded to the bloomberg all ahead of the threat from the islamic state. -- as the greatest risk to markets. we will see who is the biggest loser. that is next. stay with us.

>> welcome back to on the move. for the bloomberg poll all stop -- bloomberg poll. the russian economy is hurting most from the declines is here. andecond place, venezuela saudi arabia. we have to talk about this. this is important. the hong kong shanghai exchange link opens for business today. -- limit.daily unit

move toen as a bold liberalize markets. doors tois opening its the outside world and unlocks the market for foreign investors that had an off limits all but a select group of confessional y managers that had to stick to quote us. as.quot stock markets have rallied. they have ramped up the use of and will turn shanghai in two of the nine aild-centered -- into financial center. >> that is almost information.

-- it for me. up.pulse is coming >> he is the former npc member rexite will talk about g and what does abe do? who wants to call elections in that mood?. >> i know. you talk about the comprehensive enomics and we have only seen one. >> he tried to deliver on all three and a goes back to when this all started and a lot of said that this is a financial test where you roll the dice, hope and that you go all guns lazing and it works. ing and it works.

>> only one headline out of this. >> the head to kiss the early flight home because he needed his beauty sleep. to catch the early flight home because he needed his beauty sleep. tri-polar want a world where russia has a role to play. he is an expert on russia and we have ryan chilcote going through the fine print. we will see how far vladimir putin will go. tough andster talk cuddling with a wall of their. -- kuala bear. italy may be a little bit more pragmatic and say, why don't you

come to italy. >> italy is smart. >> i don't now. we will see. -- don't know. we will see. the ftse is down and the dax is up. investors are not pleased with gdp. the nation has slipped back into recession. the nikkei is down. the minister is warning of a global economic ounce turn. -- downturn. you know where i am. that is it for may. enjoy your day. .

>> giving russia the cold shoulder. investors say it poses the biggest risk in world markets. russia's economy struggles. we will look at what it means for prime minister shinzo abe. activists troubled look at the megadeals in the drug world. >> welcome to "the pulse."