fifa under fire. the organization feels the heat from sponsors as a defense of corruption allegations. emirates has walked away. now coca-cola has aired its displeasure. , we look atllion the football frenzy that could cost millions. futures have been pointing to a higher open. the market is just opening up. it's looking as if we were expecting a stronger euro. at,nd we are looking whether europe, china, japan, stimulus is very much on the agenda. we are looking -- we are waiting for the market to open. this is what happened on friday. keep in mind -- keep an eye out for what was happening. friday it was about central-bank euphoria.

china you get a rate cut. that is being fed into the effects in terms of asia trading. we saw chinese shares in hong kong up the most this year. mario draghi bolstered that saying he would revive inflation as fast as possible. he had better. we are expecting inflation data to show it slowed once again in europe. meanwhile you have china, , and 42% of the world economy is stimulating. how bad are things? is there nervousness creeping in because of the steps that need to be taken by the world economy. we have the outcome of that

potentially 21 billion euro fund . we have the euro currently near a two-year close. stocks will extend a two-month high. we are waiting for germany to open. keep an eye on the looks of aviva. will we see friends life group that deal? >> let's bring you breaking news around the french energy sector. has named an interim chairman and ceo. interesting news coming in from the french market. we will bring you more as that develops. that is how markets are shaping up. let's have a look at what the asian markets are watching as shares jumped across the

company. the people's bank of china unexpectedly cut rates on friday. tom.e joined by good to see you. we can see the markets like the move. what does it mean for growth in china longer-term? we have been hearing they have a much longer-term view of growth. perhaps this hit people by surprise a little bit. >> i think that is right. china's government always faces this tension between the temptation to pump up growth in the short-term and the need to pursue sometimes painful reforms to get the economy on a more sustainable long-term object to. what we saw on friday with the was short-term priority is taking over, significant cuts in the cost of credit should of 2015.in the start

that is why we are seeing equity prices, real estate developers jumping today. the trouble is that by propping up the low return on assets, low is going to, china make it that much more difficult to get the economy on a long-term sustainable trajectory. >> what does that do to the long-term objectives china has been talking about for a number of years now? it wasn't all bad news for the long-term reform agenda. one of the striking things about this rate cut is it was a. the central bank cut lending rates more than deposit rates. they gave takes new flexibility rates above the benchmark.

if you take account of the new flexibility, deposit rates have not changed. they were 3.3% before the cut. they are 3.3% after the cut. what that means is income for household savers has been protected. that is important for china's long-term agenda. boosting income is critical to the government's aim of having domestic consumers play a bigger part in driving growth. >> thank you very much. it is good to get that analysis. let's get a take on the top markets. overseesting director $4 billion in assets. he joins us in the studio. let's talk about china and what they did on friday and the implications. is the implication in the detail? is it about the rebalancing of the chinese economy, or do you

want to talk about the broader story, about where central banks wereoing question mark we talking about central-bank stepping away from markets. how it seems we have a number of them continuing to be easy with monetary policy. think they cannot really come out of it, given the big moves, especially the deflationary moves coming in. they have to come in in china and europe to try to stabilize inflation outlook. in china there were a lot of stresses within the banking site -- within thes of banking sector in terms of slowing down. the big banks had been a little more cautious in terms of growth prospects. that thetion was smaller banks have a lot of difficulty in getting access to the cost of funds.

this is aimed at that part of the banking sector to try to and the cost of capital, also the objective is in terms of transforming the economy, to encourage smaller enterprises and how to get access to that but also the cost of capital to come down for the sector. moves thee of the chinese government has been taking in making sure the rebalancing takes place in the capital is available to the places it needs to be available. >> we will be back in just a moment to get his thoughts on some other matters. here is a look at a couple of stocks on the move this morning. iva, we will have more on that story when we return. you can see both of those stocks moving. friends life is up by more than 5%. on fridayit of detail

and this morning. we will get all of that detail when we return. havingn equity fund it's so far a positive session.

>> i am an edwards in london. it's 10 minutes past 8:00. -- i am an edwards -- anna

edwards in london. what will the future of u.k. politics mean for the business climate and for trade? joining us to discuss this and .ore is lord karan bilimoria great to see you on the program this morning. how do you look ahead to the elections in may and the possibility of the u.k. exiting the european union? is that something you think is likely? what are your thoughts? >> the landscape has changed. today if you do a poll with the public, the most important issue you would think would be the economy after the horrible recession we have been through, yet immigration is right up there is the most important issue on people's minds. a lot of that is due to bringing this to the foreground and also the prime minister, who made this statement that we're going to bring immigration down to the

tens of thousands. the nets immigration is actually over 240,000, so they are not going to hit this target. even the home secretary admitted they are not going to hit it. we are jumping on a bête noire can -- on the bandwagon. the good immigration we want to keep. it is illegal immigration we need to clamp down on. >> what is important about this debate? is it about keeping that he you -- keeping the eu as one area? you could adopt a point system. what is the businessman in you say? >> no question. being in the european union is great for britain. people looking from the outside. for example countries like india see the u.k. as a gateway to europe. if the u.k. were to -- the eu, that

would have negative implications. we know there are people coming of ourng advantage welfare system. even the people on benefits in high.ountry are not that there is a big noise made about bulgarians and the floodgates would open. do you know how many will carry and there are on benefits and -- how many bulgarians are on benefits in this country? 1000. >> you have in taking cobra away from curry houses and restaurants and taking it to a different part of the industry in the u.k. what do you say about those who tie?e do not have a bigger how do you see this working out for the industry? pointh cobra we have 98

5% distribution. without their support we would not be here. we have gone into supermarkets and increasingly into pubs and bars. hubs have been closing in a big way. over 10,000 pubs have closed over the last decade. we need to save the british pub. it is part of britain. it is wonderful. there has been so much against pubs. the big pub companies invest in pubs. it would cost 250,000 pounds to open your own pub. here with a big company behind you you don't have to but in that investment. >> there can be a safety net. tothere is a huge advantage having the type. if people are paying 70% or 80% more for beer then on the free

market, that doesn't feel right. i think we have to make sure the investment from big companies continue and on the other hand the people running the pubs can buy beer and don't have to pay unreasonable rents. >> you think there is going to be some kind of challenge and we are going to find a middle way? >> we have to find a better way. we have to have the pubs be competitive and a good business that is great for our country. >> you talk a lot about entrepreneurship in the u.k. you talk about what you went through starting your business in the 80's going through the 90's. if you look at the startup scene in the u.k. and you look at how you got funding for your company, would you get the same theing, or would you be first to go to a crowd funding website? >> last week i launched global

entrepreneurship week. that was an amazing initiative highlighting entrepreneurship. this country has changed amazingly. is there are so many networks, there is so much funding available which i didn't have, and the good news is they did a survey of the most entrepreneurial cities in europe, and london was right among the top two. i think this is a great country to be an entrepreneur. i think funding is available, though i do think banks could be lending more, and they should be encouraging entrepreneurship more than they do. >> good to get your thoughts. we are watching is in the insurance sector. aviva is looking to make new friends. it is in talks to buy fred's life group in what could be the biggest deal in the u.k. insurance industry in 15 years. -- two by friends -- to buy frie

be life group in what could the biggest deal in the u.k. insurance industry in 15 years. >> it wants to grow. it is a challenging environment in the u.k. in march george osborne ripped up the rulebook when it came to pensions. out and get ango annuity as a way of protecting the amount of money you have saved so you have a steady income every month, every week. we can do with our cash what we want. we can buy some extravagant yachts if that is how we want to use it. that means a big area of lucrative business in the u.k. suddenly seems to be unraveling. in the past year we have seen friends life see new business drop by 24% and the likes of of saying, now we are

focusing on assets. we want to track new funds, boost our investment arm. aviva higher. saw this is why they are saying they have a new multi-asset strategy. pounds why a 20 billion deal could potentially be game changing. about the investment arm. for aviva it is all about cost cuts. it is offering a 15% premium in the offer. it is worth 5.6 billion pounds, the biggest deal to happen in 50 years. evae the creation of of va,bined together, -- of avi combined together it could be a quarter of the population.

we are not seeing friends life 15%.s rise by it is not a done deal. we could see friends life shareholders put up a bit of a fight, but overall we got to see if this company does get going, whether we do see strategic rationale makes sense. number s says it likes the looks of the deal. says itine -- nomura like the look of the deal. >> caroline, thank you very much. spent time in the industry. what are your thoughts on bringing insurers together? they have been through a big shakeup in the u.k., a big change in the regulatory environment. they are adapting to that. is buying each other the right way to go? >> there have been tremendous changes taking place. there are changes that have been made. basically the insurance companies are very expensive to

run. the cost of compliance has increased her magically. that means it is about economies of scale. the smaller companies are going to find it difficult to stay in business. i'm all commission into bigger businesses is the only way to remain competitive. -- combining into bigger businesses is the only way to remain competitive. is one where efficiency is the only way to remain in the game and provide good value to the customers and to be seen to be doing the right thing at all points in time. >> do you have exposure to the financial services sector, to insurers? i know you are 45% exposed to equities. does any of that go towards this type of business? bank tended to avoid the

and these stocks because we try to remain with low leverage. banks and insurance companies tend to have a lot of leverage, so they get dropped out of the selection process. >> what about the things you are buying? if you are looking at things at low leverage, you like some of the consumer staples. they have been focusing on getting emerging-market exposure in recent years. on yourhat playing thinking? >> these are global companies. they are going to continue to grow despite the fact the growth rate in the developed world is very low or nonexistent in some places. the world as a whole will see growth taking place 3% per annum . -- these companies half the businesses in emerging markets. they should be able to grow volumes and cash flow. ratesally when interest

do rise, this company is going to be far more able to place the rising interest rate environment, but eventually inflation is the problem. down the line they will measure the price. >> deflation is very important. for comingery much to talk with us. we will take a short break. back in two minutes.

>> coca-cola has criticized world football's governing body fifa over corruption allegations. hans nichols joins us from germany, where some officials are hinting at a potential boycott. emirates will not renew their contract -- sponsorship. will others follow suit? >> i wish i had the right football analogy. on the one side we had concerns about sponsorship. on the other side you have some of the players groups raising a little bit of a fuss. here is what coca-cola said over the weekend. there was an investigation into how fee for awarded the world cup to russia -- how fifa awarded the world cup to russia and to qatar. people said, move along, but the

prosecutor said there were grave concerns about how he claimed to be misrepresented in the press. said, it is disappointing. our expectation is this will be resolved quickly and in a transparent and efficient manner. , the head ofher the german football league, gave an interview over the weekend. attacks.ding here is what he said. the credibility of football's governing body is in a freefall. berdinated effort may needed. this is the issue when you talk about the potential boycott. play inootballers who the world cup are from europe or play in european leagues. the issue is you need unanimity to get anything done. the french still look like they are backing fifa. we have not heard the end of

this. >> i am no pundit, but it is usually the case of two halves. says a nuclear deal is possible. we will have stories after the break. ♪ .

>> welcome to "on the move." i am anna edwards. 30 minutes into the trading day is monday morning, how things are shaping all. a picture of the market. things a little bit shaky. of course, we saw some of the chinese interest rate cut coming through in friday's session. picking off from where we left off. things a little mixed this morning. stock specific soweto mark barton, here with three find stock storms to tell us about. >> it is the short story everybody is talking about. we matter.

down 4%. the big story of course is it is a group for 5y billion pounds. yet?e there not at all. a 15% premium to friday's close. this deal was announced. they were in talks after the market closed on friday. friends live set it would recognize the key terms of the proposed deal to shareholders. sincebiggest increase 2012. a big folder today on the stoxx ofac.s petr look at that. 23% lower. biggest ever drop for this company. be atd earlier, it will the lower end of the $580 million range.

of $21 billion. their profit next year will be five hundred million dollars. what is the problem? lower oil price. down by 24%. fred's life is up and aviva down. >> thank you very much. bloomberg's top stories. stocks in asia climbed. jumpingn hong kong nearly 3% after the people's bank of china unexpectedly cut interest rates. the mainland 10 year bond dropped the most since 2008. it was the central banks first rate cut since about the 12. she has clinched his second formula one championship winning the last race of the seven -- last race of the season. hamilton said it was the happiest day of his life. the european commission president jean-claude juncker

has a $21 billion fund to share the risk of new projects. that is according to eu officials. the father will include loans and stays in equities to jumpstart private risk-taking. the commission will place $16 billion with 5 billion euros from the investment bank. the u.s. and iran could expand the deadline for a deal in talks and the nuclear program. john kerry and his iranian counterpart have been discussing whether to push back the timetable out in vienna. the deadline had originally been set free and of the day. both sides said there are significant gaps for reaching an agreed met to resolve -- agreement to resolve the 11 hour standoff. ryan chilcote joins us. where are he and the talks? what will they be saying? word, heard the e- extension from john kerry.

that was their sixth encounter in 4 days. the deadline is this evening. there was a recognition that is one the avenues they have to begin to explore. remember, the original deal that got us to the talks in november, a deadline of july and that got pushed to now. the feeling is an extension is better than a breakup and the talks. we heard president obama over the weekend saying he did not know whether there was going to be a deal or not that president rouhani is the final decision-maker. that the interim deal in place has in some cases enrolled back toward ambitions and preparing us for that as a prospect. the question, a few days delay or several months delay or extension? for now, we heard from the press foreign secretary and other diplomats taken place in the

negotiations, six world powers on the other side of the table from iran, is that we have today. let's do everything we can to get some type of deal in place. there by the political agreement because the longer these talks go on, the more difficult it will be too good a deal in the end. >> politics going on between iran and the west and russia and the others. there is iran and the role in the oil market and that takes us to opec and the meeting later this week. , the oilanians minister will sit down with the saudi arabian minister and propose a production cut of one billion -- one million barrels a day. it is interesting and we were talking about an issue that saudi arabia is. done the opposite side of the sectarian divide. these two countries with leadership.

the idea that they couldn't grieve for a cut it is unlikely that the iranians will want to cut. sanctions have been cut for them. have the saudis that capacity. a lot of people will find it hard to believe these two countries can agree. they leaving these two opposing factions within opec. they will have to get the other two countries to agree. we have the russians, the head of the oil company, was a state-controlled oil company, is flying in his evening after he plays hockey. that will be meeting with the venezuelans. ,f there is going to be an opec what it would require is some kind of grand bargain were great deal where you have the opec countries which control 40% of supplied together with non-opec countries like russia amongst the non-opec producers that control the remaining 60% agreeing as well. that is a lot of people to agree. there's a lot of pain.

oil prices climbing over the past three days and giving up some of the games. back over that it is 80 bucks, all bets are off and maybe opec's will swing in the favor of the direction of let's wait and see where we are six months from now. it shows oil bouncing up and below $80. that will keep them concerned the price is not high enough for their interest. >> uighur from the russian finance minister that in the economy was losing 90 alien dollars-wonder the dollars a year. billion-$100 billion a year. oil --s $123 per barrel to break even. >> ryan chilcote will be covering it all week for us. we spoke to the cofounder of .ide science -- rocket

an interesting conversation to come. 8:37 in london. ♪

>> i am anna edwards. the companies on the move. aviva said today are in talks to buy friends. friends life said is willing to

recommend the key terms of the proposal for shareholder. they were only 22% of the combined company. if successful, the takeover would be the biggest in 15 years in the british insurance company. the are trading lower after oil and gas facilities company said it is net profit will moment and act in the lower end of its target range. at its lower end of the target range. sergeant said it plans to cut 1800 jobs as the company aims to save a billion dollars by 2018. the world's largest chemical maker said the layout unlikely to come in the next year. the ceo has about to cut costs after a currency swing and a u.s. write-down he raced -- erased profits. google is facing another fight area lawmakers will vote on a resolution and an proposals

search engines from other commercial services should be considered. google accounts for more than 90% of the search engines in 90% of the countries and is already underscore e for privacy issues. sticking with the technology theme, rocket internet, the property company, release its first report on the state of property in the emerging world in which it said foreign investment and the sector is increasing and points out and in the jet, jordan, morocco, and columbia at up-and-coming. joining us is the cofounder. thank you for joining us. great to have you on the program. come with this is models and yours is focused on the emerging markets as part of rocket. tell us about the business model. >> thes it work? business model is pretty much straightforward. would we are working on it offering a platform that brokers can advertise and the inventory

and listings and we have users ready to come to a platform they are looking for. a business model not too much in the developed countries. we are building a similar model for any emerging market that has not been such a business model as of now. >> you are aiming this at domestic buyers of property. the average person buying a new home rigged are you aiming it at international investors? what are the downside risks for these economies in turning their housing stock into an international investment hope? no anyme start off with particular private on antinational property. -- international property and we are aiming for the locals who want to buy property. arernational investors looking for profits in those emerging markets and use our

platform and are use of our platform quite a lot. it is already translating and yet many of her emerging markets, the foreign direct investment is really growing at a rapid speed if you look into those markets. alone in asia, it has grown 7% over the last year. >> looking to technology in businessmarkets, your model relies on access to the internet and mobile internet, perhaps specifically. what kind of trends do you see? how much diversions away from the average do you see in these markets that you operate in? >> since were operating for more development places like mexico to low internet countries, we have a huge variety of internet penetration and there is one trend that goes across all of the markets and it is the

penetration especially on mobile internet usage. it is growing at a rapid pace. to give you an example in the roughlynes, in 2013, 50% of the population had access to the internet on a smart phone. grow,in -- it expected to more than tripling the market we can ask is our platform. >> is international investors are put off by property and china will cause all the downward pressure we have seen on the housing market of late, where do you see better investment opportunities in the housing sector at the moment? >> again, let me use the philippines as an example. does a pretty good investment property right now because they have two key trends. they are still growing at a relatively high speed.

secondly, many overseas filipinos coming back and plenty to buy a house for the retirement. roughly 10% of the population is living abroad and planned to return whenever tiger. finally, the outsourcing industry. it is growing rapidly and the philippines. the many moves from eastern europe countries to the philippines. therefore, raising the demand for real estate on the commercial sector. and the gdp growth -- sorry. >> can i ask you about the african market? tell us a little bit about the african market rent you are in wealthyand less countries. tells about what you see in those markets at the moment. is a strongee growth in those markets. nigeria, for example, has been

named in the up-and-coming emerging markets by "time magazine." and we see a huge growth in gdp and access to the internet through mobile. most people go online for the first time through their smartphone. andee increasing demand affluent middle-class that now for the first time plans to buy property. last week, they have a relatively young population with a majority of people under 30 years old. increasing demand and property over the next couple of years. what else we see in morocco -- >> is all we have time for. thank you. paul philipp hermann, cofounder us.amudi joining the darker side of technology. a new malware has been developed by symantec. be created by a nationstate to spy on countries. .ere with us is caroline hyde

caroline, it has been used for quite a while now and we are just hearing about it. >> symantec which is a security provider, we know it for norton antivirus house had found his new malicious software known as en, used in 10 reg different countries since 2008. they say the infections have been on a variety of organizations, initially seen from 2011. and it seemed to be removed. as resurfaced in 2013. >> who has been targeted against the 10 different countries? people? companies? >> it is everyone. it is interesting. no russia and saudi arabia, the two most popular countries being capital. they have more than half of the attacks and those countries. yunnan mexico -- you have mexico

evenndia and belgium and austria and pakistan. 10 different countries is where we see it. attackingely individuals and small companies. half of the attacks on their. goesext of the allotment to the telecom companies. 20% of attacks happened there to symantec. they warn those companies to get a hold of the individual data. to rest seems to be going energy, utilities, airlines, government. research institutes, it is almost indiscriminate geographically as sector of industry. >> it seems to be across the board. is it the small businesses and individuals but difficult to ascertain, anna. they seem to them to capture recover deleted

files. that's the intricacy and they are using it. you may be directed to what you think the popular website. it seemed to be yahoo! messenger and it takes you to another version of itself. >> what is behind this? who is behind this? >> symantec is a deacon who is behind it. when we look at the phenomenon -- symantec is thinking about who is behind it. -- when we look at the phenomenon, it is hard to figure out who is doing it. who is behind it? >> nationstate. this was symantec has come to the conclusion. the sheer level of a resource and money thrown at this means it is likely to be a nationstate that is doing this cyber espionage, they call it. are amazing.ies

the ability to hamper computer investigations and incredibly longer lengths to cover themselves up. , it is custom built so you cannot see it, you cannot track it. it has encrypted files. interplays --nt their statement says it is complex. at the moment, all very old take seems to be the case going on for a long time. >> caroline, thank you very much on the malware stored -- story. this is how they are trading after was overfilled -- and revealed that aviva will buy friends life. friends life is higher. aviva is down. we will be back in 2 minutes.

♪

>> welcome to "on the move." i am anna edwards. " is coming at the top of the hour. guy johnson is with us. >> we will be dealing with that number. dayhat number, but on a where the spanish ten-year is

lows.the yield at record on a day where people are reacting to what a mario draghi had to say, we will make the discussion a little bit more broader. what happens next on the policy front and how that is factored into the german economy. >> taking the opportunity to renew. revisiting the commitments he made in 2012 area >> a nice way of putting it. people were a little surprised at how dovish she was. it pushed the balance sheet aggressively. ecb and that can be a good opportunity to take another step toward the qe story and many anticipating he will. >> i heard there were 46 dimensions of inflation and the mario draghi's speech. >> this guy needs to get out more.

is clear, the message inflation is the focus. let's talk about fifa. hans has been covering this out of germany. >> we have a guest comment on and will be top about whether or not the big brands associated with fifa feel it is too toxic to do business with. if it happens, it is the final whistle. game over. we need a change. many people would argue we needed already. we will talk about that from a business point of view rather than the political and football point of view. theuy johnson at the top of hour. before we hand it over to "the pulse," let's look at what is happening on the markets. european stocks are up 0.8%. cac giving decent gains. by 0.3%.

you can find me on twitter if you'd like to tell us any of your thoughts on the stories we're covering today "on the move." that will do it for me. i will leave you with the team of the "the pulse." ♪

>> how low can they go? as the yield on the spanish ten-year falls below 2%, we discuss the european economy with the ifo. fifa under fire over handling of corruption allegations. could it be game over? seven is ticketed, stealthy and probably state-sponsored. who is behind the most advanced spy software yet?