it just beat the estimates, budgets second against airline says they plan to boost capacity i 5% this year. that is one stock we will be watching ahead of the opening. points, stacks up 24 points. yields in spain headed toward 10%, a remarkable move and woman look back to yesterday with may look at, they buying sovereign debt. the equity markets turning higher this morning. manus cranny. what amount of stimulus will abe deliver to the market.

itghi has not made triumphant into what has been written this morning. decliningbeijing are for the first time in two years. is that trouble? futures, a look at some of the equity markets, they are open and some of the cash markets are trading a little bit higher. on andon will keep an eye few. we will keep an eye on that particular story. 6% inles went up over europe, the sixth consecutive month you see a rise in car sales. fiat up byby 10%, 8.4% and jeep sales, i can tell you i know where they are driving drapes -- jeeps. in the postcode near me.

makersme of the cement will impact the paris market, they say they are seeing their numbers nicely and easyjet and ryanair will be on the move. edwards ony to anna exiting thewn" that u.k. would not be good for their business that easyjet is almost a child of u.k. and europe deregulation. i know you're sitting on that chair waiting for what strange currency will he talk about next? >> there you go manus cranny, the man who used to have a jeep. the market opens marginally higher, if you look at the easyjet stock move this morning, down 1.8%. yesterday it was up one so the

market rallying about marcus stroman -- mario draghi's comment. possibly. we sat down with mervyn king and here is what he had to say yesterday. the trouble is the single monetary policy does not fit all countries and facing up to that might be a first step to thinking how to get out of the problem. >> joining us for more perspective on the top trading on the back of those bank of england comments from former governor mervyn king, the chief investment officer at alianz global europe. here, when we see those comments from mervyn king on the ecb and he starts talking about one size does not fit all, are we back to the greece needs

at bazooka and germany has the buddhas bank -- bundesbank. >> the options he has are relatively limited both in europe and japan. the armory is limited by politics in particular in europe. that is the difference between europe and japan at the moment, what he actually can do. the difference has been that he would want to wait to see how , and qr punched through thus there was a real crisis in which case that could give more political will toward a stage of real qe. when mario draghi speaks, markets are following it up

whether he follows with action or not. what was more interesting was the comments from steve murch about the possibility of buying gold and adding a whole bunch of things to the shopping lists, what you hear these things to you pay much attention? >> it is always interesting to see if there are more options. is option of infrastructure a very interesting one but what has been suggested so far is about 11% of gdp and will not make any difference. that seems to us an easy win if you can get through the institutional barriers. , it is going to get the banking system working again and keeping reform in the area. credit whichd for is not good for this environment. . >> you have been coming here for

12 months banging the drum for health care and tech, those two industries probably the best performing over the last year, are you looking to pull out and where would you put the money? >> allergan which is going through the merger now, looks like they will take a bit of profit out, but most of that sector has done well this year so there are profits to be taken and the areas where you would look have likes but some of those areas like energy materials and some of them are seeing a lot of downside in earnings. brave, but ine the middle of somewhere is the financial sector and within the financial sector you can find value, you can find earning see aization and you can

part of shareholder returns as dividends begin to come back into being again. clearly you have to be careful risk,specific litigation but it is a very diverse sector which means you don't need to take a lot of fiscal risk. >> here is a stock on the move this morning, the airliner showing full-year earnings growth of more than 20%. we will bring in the comments from ceo carolyn mccall. you see the stock down board -- down by 1.3% this morning. and king tells us why david cameron is right to be worried about growth and more currency wars. back in two. ♪ >> welcome back to "on the move

." streaming online, your phone and apple tv. let's talk japan, red across the

board in the country yesterday after the gdp showed the country is in a recession and today a little bit of a turnaround. the nikkei up by 3%. the prime minister is set to speak later this morning and many vesting he could put off the sales tax increase. what do you think he will say when he steps up? are we expecting him to delay the sales tax increase and call for snap elections? >> yes on both accounts, the sales tax increase next year would be economic suicide at this point. if he went ahead with that it would be a fast made decision. if you look at the effect on gdp since april, the effects have been devastating. consumers are looking at another tax increase 12 months from now

and that will only hurt confidence and business confidence as well. the snap election seems like it is going to happen, but it is a bit pointless from my point of view because he already has a mandate to reform the economy and shake japan up, the issue is, will he do it? of moneymped a lot into the economy by way of the bank of japan but the question is even if we have a snap election and he has a new mandate, he does not need it come a heat to get on with doing his job. yesterdaye about 1997 and the snap of 97 was a last time they put up the sales tax and we saw them fall into the recession, are we expecting the same thing? how distant a prospect is that? >> what is interesting about the state right now is the opposition parties are so weak. they of japanese even if

do not like his policies, the question is who else? the opposition parties are in total disarray and there is no , so forreplacement better or worse you have prime minister abe. this next mandate will not be stronger than the 12 years ago, his approval ratings are down significantly, we have this recession and he has raised taxes and his foreign-policy has been unpopular so he will not have a stronger mandate then two years ago so i want him to scrap the election and get on with the dollar. squeeze the banks over this? why secure fiscal stability before they secure a recovery? >> there is a very vocal minority that believes a tax increase is necessary to maintain fiscal trust.

their debt is massive, 250% of gdp and the population is streaking and aging rapidly. you could argue inflation is a rational response but there is a concern that if japan does not go ahead that the bond vigilantes will step forward and start wreaking havoc. thatld argue the opposite in a recession at this point and time it does not help things either so the next tax increase will be economic suicide tonight. agreeing more with paul krugman than adam postman, it is premature to be raising taxes once again and the devastating affect show it would be at bad policy. >> always a pleasure to have you on the show, joining us live from tokyo, let's bring in the ceo of allianz global. are they going for a snap election during a recession?

anywhere else in this world it would feel like a big risk. tothe don't need to do it put off the consumption tax so if he is pushing to do it it's probably because he wants to be able to reshuffle the cap it. that is the understanding -- and cabinet.e that is the understanding that we have of it. obvious other policies that would deal with the enormous issues they have an debt being the largest one. from our perspective as equity investors it is the third arrow we are far more interested in. impact on higher shareholder returns higher it is still aty

very early stage. that is what we are looking for, if we see more of it there is plenty of catch up opportunity. but we are not really seeing a asking af it, everyone not reallyut he has got started, these three arrows turned out to be one big bazooka. and --u look at corrode don you see corrodeenomics, you say i will play the trade, along dollar, you -- long in -- yen? --we look at custom meet companies we want to invest in is i think the one issue

dominated funds in play and that is why you think you see the volatility. for us it is finding those companies which can compete globally. >> i was reading your note about a real change in approach toward corporate profitability in japan. what do you mean by that in which companies have changed their attitude toward that? >> it is a short list and i talk on a regular basis with our japanese research analyst to see if it is getting longer and it is taking its time. some of the companies we own there are stella, a pharmaceutical company which has a good drug for prostate cancer and that has been growing at home and abroad.

it can really compete in a global context. fmc which we were just talking about. they are a leader. invested in one of the trading companies, choo. they're committed to raising the returns and liquidating their debt. if you take a bit of currency weakness into that it is still of decent yield. there are opportunities there and we are certainly looking for them but it is not a long list yet. up, whato wrap things about people who talk about the ification of the eurozone,

do you see that playing out? thehere are similarities, biggest is the overall level of debt to gdp and although there is a lot of debt in the periphery, when you look at it as a whole it is nowhere near the debt burden of japan. has less political to deale and ability with these issues. overall we are seeing debt areas we haveoth to leave it there, thank you very much for joining us. a quickd to the break check on european equities. we opened marginally higher in daxpe, where are you, the up by 46 points, one stock on

the move, easyjet and our conversation with carolyn mccall later this hour. at two. ♪ >> welcome back to "on the move

." the groups are selling a

stake in the cable company worth .s much as $425 million the two groups also increase the number of shares they are selling bike 2 million. -- by 2 million. lifttial shares getting a after the company reported nine-month annual premium sales rising 5%. the company also says profit up your today you can see there. 6%.ish land gained fifth -- is the u.k.'s second-largest real estate investment trust. look at easyjet, the four your .rofit jumped to 22% the airline says it will expand capacity this year as they try to add passengers. the ceo carolyn mccall spoke to us today and we got her view.

think our stance would be we want to stay in the unique -- eu because it is good for business and we have access to 500 consumers in europe and it is easier to do business in that framework. i believe you need to get rid of the bureaucracy and the red tape which is what everyone says but we believe a reformed europe is better business for us. >> you will hear more from the ceo later this hour. a quick check on the equity markets this morning, the cap then up by one third of 1% dax up by one half of 1%. a little bit of a turnaround after mario draghi. it gave sovereign debt a bit of a lift this morning. let's get back to the corporate news, there is a new member in the mobile payment business.

actchat is getting into the of a new product called snap cash trying to rival paypal. snapchat, financial payments, what we expect in that? interesting, a clever combination with square, square has the payment know-how and they can prove that they have privacy. square can leapfrog all the other people and the likes of who google has been trying to get. all of these competitors, square has the access to and the real u.s., you canthe or a visa, debit card, mastercard debit card right now, type in the amount of him a hit the green button and there it

goes. suddenly if you're having a drink or sharing a coffee you can suddenly split the cost. >> why does snapshot want to do this? >> it is all about monetizing, maybe it won't be just sharing the cost of our lunch maybe it will be because you get e-commerce directly. you might see an ad on your phone and easily of your bank details to click and i the purchase so e-commerce is a big area of growth as is advertising. if they were able to get from square who they teamed up with him a products they are actually buying they will be able to say the pub that you went to last week has an offer and it will be that much more clinical about advertising direct. >> it is a little bit creepy that thank you very much. europeanheck on automakers, the largest sales figure shows the market on track for its first annual gain since

2007. we will break down the report next. all the carmakers are up this morning. in the meantime, follow me on twitter. ♪ >> welcome back to "on the move

." >> the 5100 up by 19 points, the dax up .5% and in paris growth quarter of 1%, let's get stock specific, the european business correspondent caroline hyde. relief all inis a the u.k. bill says not too much has changed. all of this is looking good at the end of the third quarter this has been a tour it time for

bell for beatty -- balfour beatty. they now have the cfo leaving and a complete management change as many are seeing where this company goes in terms of they have they say millions of pounds in the door but overall it's relief, everything seems to be on course, keep an eye on the smaller retail stock, pnm 400 unitsalue retail, in the u.k., they're also sayent in germany and they they could double in the next 30%, the, sales up profits as their up by a third as well and they may be just

getting their hands on a few bases in the u.k. to help expand , meanwhile on the downside, it is not particularly bad news because of the huge run, rubber they sold shares earlier this sold 70% sinces now they arend selling a stake worth 341 million euros, just on the lower side and there is some profit taking there. the three big stocks to watch this morning, here are the top headlines, asian investors are awaiting the asian prime response.be people familiar say he will postpone a sales tax increase to next october and call for an early election next month and may even order stimulus measures.

mario draghi says government bond buying could be used to stimulate the european economy, he says it might be among the can -- unconventional measures they might use. likely to show a weaker outlook for growth. in the bank of england governor sits behind david cameron's warning about slowing global growth. teetering on the brink of a third recession. >> he is right to become schists and we all should be, when we had deep down terms like 2008 and 2009 and what you might expect was volatility that would not rebound and we have not seen that at all. what is more worrying are the clear signs of recovery in the united states and the united kingdom that are a big part of the world economy and there is no sign of that.

>> we also sat down with mervyn king and asked what he thinks is the biggest threat to the global economy. area is thehe euro biggest risk because i don't think the leaders actually have a true vision of how to cope, the contentious feeling is that germany is to step up to domestic demands and that the bundesbank needs to change their tune. what would you say? >> it is not to me to speak to the boot is bank and get them to desbank andr 2 -- buned get them to change their tune. it has done damage to france and italy and so i think the challenge for the ecb is to find a stance on monetary policy that would allow the euro and weaken sufficiently to give france and italy a chance to start seeing a recovery, i must say i think the

challenges are enormous and i don't believe the optimism that always comes out of ministerial meetings is well-founded. they ought to be very concerned about where they are. >> what you think the next step should be for the ecb? that theg challenges separate states are different from each other and they are selling a single monetary policy in that is at the heart of the problem. to think europe should try change the arrangement and become a united states of europe? >> there is no support for that around europe but you can see a big step forward has to be a clear recognition on the part of the leaders of europe, looking ahead there will be two different categories of the european union, those in the euro and does not in the area, those in the area will require a

degree of coordination that is not explicit physical and political union and that is not appropriate for those in the who recognize the euro area as the european union is a dangerous mistake. fascinating comments from urban king, you can find the full interview online, i will tweeted out later as well as we question the policymakers response to the crisis, check sales, 6.2% and putting the auto market on track for the first annual gain since 2007, was it a case of cutting prices and flattering topline growth? >> it is a bit of that, you have three drivers, when you talk t, with a growth of gain, chrysler at 8.5%

you have pent up demand, we are on course for the first rise in sales in seven years but sales last year were at a 20 year low so there is a lot of pent-up demand, the average age of the car on the streets of europe is pushing eight years. >> people need to cars. >> it doesn't get any cheaper than now to finance a car and there are a lot of bargains. you look at the deals and they are discounting 13% of the sick -- sticker price so a lot of consumers are saying it is cheaper to change in my old car the cause if i do i will get the car with almost zero financing cost and it will be at a discount. on fuel efficiency in the long term i will gain and if you're in spain we suck car

sales increased by 26% you have the cash for cars program to boot. doesn't really tell you much of the story at all, let's talk carmaker by carmaker. a the biggest winner is not fee at so much but the chrysler part, bringing the jeep to europe was part and parcel of his big plan to bring fee at to the united states and chrysler over here and it is doing very well, sales of jeep in europe up 75% and that is extraordinary. investors are saying that is going pretty well. ugeot actually had the smallest gain when you look at monthly sales, a little bit more than 1% but if you look at france, out dozen countries in the survey, they actually had a dip in sales.

and given that france is their home market that is not that bad. when you look at them the issue is not their volumes, they would like them to make money so they are prepared to see them sacrifice the volumes if they can get the margins right and that appears to be going in the right direction. stock in thery stock 600 index in the right direction. we will continue the conversation, coming up easyjet off a list after taking more business customers, the ceo told us how she is winning over business customers, more of our interview after the break. ♪ >> welcome back, i am jonathan

ferro. becauselk about easyjet the low-cost carrier raised its dividends to make room for more passengers. airports keep up as airlines expand, bloomberg spoke first speak with carolyn mccall about the need for more runways. hope that the davis commission recommendations are taken on and implemented. think this is about a government, i think this is about politicians of all parties because we have been talking

about it for a long time, in 1965 there was a proposal by government then to build a sixth runway airport because it was getting congested, this is been an ongoing debate and actually there is a crunch and it is at airlines there are still not getting there and we have to face that. government and the airport and all the stakeholders are aligned behind that and that is what we need in the u.k., we need to take on board the recommendations and everyone get behind it because we need some .ertainty about the future >> can i ask you another question about the junction airlines,litics and

they are relying to some extent on the openness of the european economy, what is your stance to the possibility of the u.k. exiting the european union? bei think our stance would that we want to stay in the eu because it is good for business, we have access to 500 million consumers in europe because of the eu at easyjet and it is easier to do business. get ridve you need to of the bureaucracy and red tape which is what everyone says but we believe a reformed europe is better for business. i think a single european sky would still exist so it is not a in terms oft to us the open skies agreement but it would make is this much more difficult. eu anda child of the born from competition and the deregulation that occurred 20 years ago.

we have benefited greatly at easyjet from the eu. cannot haveit escaped your attention there has been speculation about your future and where your career might go next, the telegraph wrote a praising article to you for delivering 10 times more profit compared to when you first joined and suggesting if you like a challenge you might like a job in the retail sector. any thoughts? >> i think the aviation sector ,s pretty challenging every day i love what i am doing at easyjet and i think we are doing brilliantly for our customers and i intend to keep doing that for a long time to come. onjoining us for more easyjet one of the airlines analysts. we started the conversation just there with capacity and increasing runways but when we look at capacity from airline to

everyone is talking about it, how crowded is it getting? >> we've gone from an environment where there were two low-cost carriers trying to take shares from the legacy that is easyjet and ryanair. to certainly a more crowded space, give norwegian, with their, and always pretty aggressive. i think it will get more competitive in the question to us is how quickly will these legacy carriers withdraw. is, they will have to and they are destroying value on the network and it is a question to how long it takes for that exit to take place. from an easyjet perspective they are making 21% return on capital and it may be in a slightly more crowded space that those returns slightly come down. >> this company has been the

darling of the airline space and some people might say ryanair weren't doing anything to change their course until recently, ryanair almost copying what easyjet have done, how much of a .hreat is that going forward >> easyjet is the number two low-cost carrier in europe and it is not subbing that ryanair can copy overnight. in france and switzerland where i would expect to see ryanair not getting involved for some time, there is an argument that around the edges ryanair can imitate a lot of the products and if it is offering lower fare it does have a chance of taking shareholders. but i would say the main target are the legacy carriers, rather than going off like easyjet they will react, the main topic is

legacies. >> the main target is a legacy theiers and it must also be business traveler. how much of a fundamental part of the strategy is that for easyjet and i asked the question once again because ryanair want a piece of the action? about 20% of the customers are traveling on business and that means in awful lot over the last couple of years. they havekes to claim a similar proportion but it is probably a lot lower. it comes out to the same question of taking shares in the flags. in a youken the ledger focus on a higher revenue type premium customer. gatwick holding more desirable places but it will be a relatively still -- slow steady burn. final question on fuel we're

seen the price collapse since june, tell me how this translates to fuel cost for some of these carriers and how exposed easyjet may or may not be to falling fuel price. the them are hedged. does not flow through immediately but over time it does and the airlines are extending their hedges going forward. so certainly eject will see a benefit from this, if you were at art of mark the market unit can't city capacity they would save 17 million pounds the benefits. it is something we do expect to see progressively going forward and just a reminder you have the u.s. dollar in there and they will upset some of it. >> european airlines analysts giving you everything you need to know. thank you very much.

break them a ae quick check on european equities this morning, the dax up by 50 points this morning and we are looking over to japan. japan is back in recession with a little bit of a turnaround today and everyone focusing on comments from prime minister abe. will he delay the tax hike and will he call a snap election?

>> welcome back to "on the move ." >> here are some companies on the move, general electric says they need to encourage more risk-taking because playing it safe could incur more long-term damages. barriers are holding back innovation and europe and says the eu should consider making bankruptcy simpler so companies can dust themselves off and try again. expecting the new spiderman movies and games will drive growth and hoping for a revenue next of 36% during the three years. the sony ceo is looking for ways to bring the popularity of tv and video game content to demand. ikea making its biggest renewable energy investment today, the largest retailer is

buying a wind farm in texas. this will bring the number of wind farms at ikea to nine and it is planning to invest $2 billion into wind and solar power next year. "the pulse" is coming up at the top of the next yard. guy we are all waiting for abe. the anticipation is that he will call an early election for december 14. take advantage of the fact that he will suspend the second sales increase, it is politics but you wonder how the machinations work behind the scenes. asanywhere else in the world the country falls into recession the last thing you would want to do is call for an election. >> the opposition parties are disorganized right now so maybe he takes advantage of that and he is also taking advantage of the fact that he is something to

sell which is i will not put up a second sales tax increase. is a political story as anything else, if you see an advantage to give yourself a longer mandate to take the advantage of the policies you put into place which are slow burners, and maybe you take that bet. >> the question for europe is well is the fact that you chase fiscal stability before a recovery. was a mistakehike why are you even debating a second one? recoveryurope, get the before you think about fiscal sustainability. europe is japan and i think they are different. one of the clear things that needs to happen is he needs to get the economy on track and that is a very clear lesson that needs to be learned and europe

and germany may need to learn that more than others. getting the recovery back on 's learningink abe the lessons of previous japanese administrations which pushed up sales taxes and lost the recovery and blue big political advantage as a result. big political advantage as a result. >> we have wilbur ross coming up. you are talking about the g et economist, about the fact that we to speed up bankruptcy laws, we will get wilbur ross's takes -- take on whether that is the case. structural reforms is always ever talk about here in europe and it never happens. if you want to talk markets you know where i am on twitter. "the pulse" is up next. ♪

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gamble. chris abe's critics blame your. former governor tells bloomberg the region is the biggest risk to growth. >> european banks. target rateut his here on the pulse. ♪ chris good morning. you are watching "the pulse." i am guy johnson. >> i am manus cranny.