300. budget with a different left. forecasting almost no deficit at off. zone finance minister. big rally friday. we'll talk about that as well. but down by 29 points that's what feature markets are going. >> hey, john. thanks for that. this week is all about how much do the banks take from the european central bank? the dow, touchy 10 points away from that point. slows dyinging germany that delivers.

. you mentioned the c.s.i.? the laggest oast of games. 25% over a 12-day advance. so the chinese do it without any real brace below them. his is as they raise the speck trow as the company. think about the do you want know sign us. so i keep an eye on that particular stocking. there's been a few stories over the weekend. remember they were. may stored the lards and

need to cut some of they need it. it's on the back of the story that they are potentially making it on for a four seekering. - well, the obvious is no no sinner things. u.k. crystal, ambers was the of three athlete. on state but those are three individual nafmentse i thought i would try to them them together .bi a why? because of the hong kong. i thought we would have a ligget of reflection.

obviously a big focus for them is in the jake nail at will. the ratings companies does anybody really care what the ratings companies really say? butly cover them anyway. ts italy from triple d going to triple b. he sony record arling. and we're going stay. o what you've got sheer a very in the markets for 2015. >> thank you very much. lower across mainlands europe's as. that was from the beaning of . ternational sentiments early

hidden beneath market boyiansy. the highly abhor nal is unthinkable en the because else take routine. ups tion stratjithses in investments mark. . disaponedsle. . i think we do see certain point ises of breakage. i think that said, you want to go to his days. ictle. st so unrest

down.e only prices go this i can not incred. there are pocket where iser concern. already i see a bank of i don't have this. what that means for market markets there. but then i look at the chy not. so i bring up the chance of the day. going vertical on what or about 40%. ? it's one of our per formed regions. japan we look best in asia. he's one of the countries we look too. but what we don't like is system of the countries that are xposed to oil.

creanl is another down with keem cyclical experience. >> oil exposure wants to learn something there. d from the back of setment anyone with huge expo terrible are dominated get whacked. look at we don't like're of them. . his latest his year. we still have a. but dollar smenkt. it's going take this year because s because they have had.

here's a dollar of the. is one of the big reasons. i look across the markets. that's bhn so many impacts and aid. we talk about the government and how the budget deficits how they could be wearing you. and tezz. so the concern there at ux us. er are we knower what's beginning on with bleak. >> lot of countries have sub and fran company december car. and also to track. i sympathy what they don't have to have. mow know could cause problems own even though it was a

warning shot we've heard before and nothing has happened into a shot. we've talked about that dollar exposure. we will talk about oil expo usual after -- we look at the en in five years. more on that as we head to the break here's a picture of the arkets asm very stron ill > the dax off by some 1/3 of the market. we'll be back.

>> welcome back to "on the move." i'm jonathan live from london. every single medium you can think of out there. it's time to talk about it now. the drop in the price of oil. one of the companies has got to be the oil one. b.p. said it may cut jobs and freeze projects. that's according to a report in the sunday times. -- some ay want some oil companies going to be the losers here? >> yeah, absolutely. down a tad -- down for its thirds day straight. the decline in brent and we can talk more about that later. but it might be worse.

the sunday times report an enter swrue the c.f.o. of the company saying that december spoot the fact and expect to cut $10 billion more and. that is something that shareholders always like. they also said they would reduce their head count saying you know, hafe cutting back production. buff there are a lot of. that could go in necessary. also down a tad this morning. were saying that if the current oil price stays whether it is in two yoors time they would have to forego developing some oil. so if the mon ra was. it is flash. i've got at note that says the

following oim priced the next to depend's one system as you cut cost. two murders and acquisitions. that is what we have to watch afpblet those oil traders, you know, tpwheal their paint. maybe i just thought. it might be a good thing for the investmentbackers not lets for the straight. ou stea all of the frea. they're going to be love it it. we mentioned brent. it's about. box. also important to pay also around 65. i see 55 of barrel. why is the. most of the people believe it

was this price between arke gym and and the pruteser are you out of the market. $63 .72. barclays say if we see oil and this is before wti then we will see further decline this is the cuts of oil. going to bring in our global set allocation strategist at bank. some i don't recall anything talking about it. if it's going to happen, it's going to happen. i got back from that b.i.s. report. this is the third biggest drop for oil in the last 50 years. huge. >> it is shocking. you're right.

i mean, we didn't see it coming last year, certainly. we're expecting it to stay stabilize if you look at the winners and the losers first of all regionally. so it developed markets generally that it gined. two. they bring it back in the form of oil. germany, france, you know, they et a bigger boost. . and of course that will weaken the area fort worther, >> so that will be further. germany looks right. it has very little exposure. there are many wise why. weapon live in the straight world where all that is good for the economy isn't good for markets. >> i like.

we've had a lot of pushback from clients because we don't like it. it's a very liquid market. we e are already a lot that see the defaults. 17% of the issues are actually energy issues and higher market veraget so if dwow some some chuckee. and this is a market in which we ell investors through mutual funs. . now if they do pull out afpblet of course you'll set the liquid stu. so i think there's a risk of contagion here. what is the can't list because when i talked to the guys butished do we have to wait for your folks? >> i think so. i wouldn't underestimate your

thought. they tell nea there's a massive bit of yield from their clients. they know that there's a problem from the market. it's not created through secondary market. more kind of nonfinancial subs nated debt. which gives her ex-dra little pig to step up. a lot of. . from what you're sayinging is you're kind of the case. is that how it's going to play out? .> yeah are mblings he is but if this did happen. i think you would look like the uy from. .

. that's the wrist case. . it feels like last year. that's going to hike next year. yields are going to go left. . it was so much like the preview. is your prescrew didn't. . but if you look at every come poignant of it, it's going positive. every component is very important. . there's a strong relationship between. there are certain names which we . if you look at beverages all of these factor tors god luck some of be selective. i think this story is that they fought smling positive thean. thre's talk about the treasury market.

zpwr mow does this play out? i have to go higher. >> some of traders were talking tos. treasures lead to bo. so we do a statistical analysis. >> there's very strong. thrfls before herbries. and we think the reason for that is because of this massive spread in yield between treasuries. this means that the one low rate is keeping it to a low rate. so we think of high. >> so some of the outlets looked here when they're looking at fed rate. that's not what you guys are looking ifer. >> certainly not for the long . y less than you'd expect

italy, both of them work more on that un and then they see the dollar appreciate. very . nd spons at is 17b98%. coming up, the shanghai cop eaches new highs child .

>> welcome back to "on the move." time to bring you up to speed with some companies. biggest ain with the statement. infosys he founders of said the founders will sell more

shares. illion low ther shares a two year after reporting a bigger than expected drop. it is down more than 37% this year of the luxury retailer recorded a third quarter profit and. let's get to chinese stocks because they went through 3,000 points for the first time in three years this morning. joins us now with more is bloomberg's david. what is behind this recent rally? huge. >> let's have a look at the c.s.i. 300 because you can see over the last few months it's really been taking off. today will be the 12th day of

games. that's a record series of games fire fighter that particular index. 21% in the last month that's pushing and one of the reasons why he's pushing through is a lot of recently and then informs it into the school. they're degree ruled. anecdotal evidence opening up new accounts because i want the same bank and where else do you informs if you're the packer. it seems to have taken leave of the fundamentals, jonathan. >> the secures regulator and try to warp chydemeeze. and there are risks involved when they put the money in the stock market. jonathan? >> dave, we talk about detaching from song mental.

. doingok at japan's commay worse than expected. you might expect this to be a blow to him as he is running for re-election. we're seeing some opinion polls coming out in the newspaper saying that it is shin zo might win for the very first time. the liberal democratic party is. and it's good news that some investors are hopeful for that if he does have a big enough push e he'll be able to these form. they pe long to the forls and change out. o he's going do have the "political capital" and that might actually get the economy

growing again. estill to come on the program here from london, we're live in athens. we'll talk about that after the break. were they former bank economists. stay with us.

>> welcome back. i'm jonathan ferro at bloomberg's european headquarters. 30 minutes into your trading day, this is how we are shaping up. stoxx 600 down by 0.3%. we are not down by much, but 18 out of 19 industry groups are indeed trading lower. the ftse 100 down 0.4%, off by 30 points or so. the dax down by 0.28%. some stocks on the move with caroline. >> an interesting move related to m&a. you would have thought m&a would mean stocks go higher. not so when you are looking at sika, down by 11%.

this is the worst in two decades. sealant, of industrial saint-gobain says, we want to buy a controlling stake. the founder of sika currently holds. of theuld have to 52% voting rights. management not happy. says, we will quit if this deal goes ahead. many worry about the future of this company as we see the building units start to consolidate. single vein, obviously looking to buy a controlling stake in this company. you will, seadrill, get some welcome news if you are a stockholder of this. offshore deepwater drilling is what this company does. is upping hison stake in the company. 2.7 million shares is what he

now can buy in seadrill. this is a man who has bet the house on oil. he has the largest fleet of oil tankers and now seems to be eyeing up deepwater drilling too. some key movers on the stoxx 600. >> thank you very much. here are three top stories. stocks go vertical. top 3000 for the first time since 2011 this morning. the rise comes after the country reported a record trade surplus that fell short of analyst estimates. overseas shipments rose from a year earlier as imports fell by 6.7%. that leaves china with a trade surplus of more than $54 billion. a final report on growth in japan shows a deeper recession in the first quarter than estimated. final readings show contraction of 1.9%, which is worse than the

original 1.6% estimate. the data comes as prime minister shinzo abe campaigns for reelection. the bank for international settlements warns of global fragility. the vis set emerging markets that hold large amounts of dollar done nominated that are at particular risk. the dollar index closed high after the release of stronger-than-expected jobs on friday. commonwealth bank of australia and its competitors may need as much as 25 billion dollars in fresh capital after a government inquiry called for " unquestionably strong capital levels." australia's treasurer released the report which recommends that the bank boost capital levels. back to europe now. it is down to the wire for troikaas talks with the are stalled. finance ministers meet in brussels today after german chancellor angela merkel

increased pressure on france and italy to reform their economies. hans nichols joins us from berlin. the german finance minister has just been speaking about greece. me the top line. >> he says that greece is going to need more time. that likely means a technical extension. inkets started pricing that thursday-friday. wolfgang schreiber speaking just minutes ago, says it is not going to be the first time that greece is going to need more time. he adds that they will find a way to figure out how to keep them funded. there are a variety of deadlines coming up. greece wants to be free from the troika. they want to be able to raise money on their own in the capital market. the markets don't seem to think they are ready. they are in this standoff. they passed a budget over the weekend but that is basically meaningless. greece needs to have some sort of agreement with its creditors so it can move on.

this is where this meeting is so interesting. how are they going to do it in brussels? how are they going to pay for all those differences? euble also praised italy and said their structural reforms are competitive. at the same time, he said all the programs and principles that apply to greece have to apply to the other countries. that is a clear reference to italy and france. they are not going to come in under target. we are going to have a fun meeting. angela merkel dropped a bomb, criticizing france and italy. we are going to see some tension. jon. >> hans nichols, thank you very much. now. head out to athens a former world bank economist and member of hellenic parliament, now with thought for action.

elena, i'm going to start with a quote. when bondting the era markets were close to us and we needed bailout loans to buy. is the prime minister too optimistic? are we that close to exiting that era? >> i think he is more optimistic than reality. we are not very close and that is the actual reason why. we are still communicating and negotiating with the troika. crunch oft the last the european bailout. we will be able to continue with this new year's budget. it is a tough period. we are going to pass another set of austerity measures, i'm afraid. it seems that we are a little he further away from where is suggesting we are. >> elena, what has changed in greece in the last five years?

you said that a lot of the changes have been more austerity, nothing has really changed structurally. are we expecting more of the same? >> the problem is that we are aying to be saved by political apparatus that has brought us to the situation in inwe are, where we got 2009. i'm afraid that the political system with the public sector doesn't seem to find a way to , toganize, to restructure get into low transaction costs, environmentcy, an that is attractive for everybody to save and invest. in 2009 been the case and continues today. >> let's talk about the politics of this. it may not matter what is coming

because the ritz are ahead in the polls. they could tear up the strip with regard to what could happen in greece. is that the case for you? have -- if wee we are remaining in the european union and the eurozone, which is going to be the case, i don't think we are going to scratch any papers or contracts orardless of the polemic internal debates. what i think should happen, and 180-degree, is a turn in structural reforms. that has not happened yet. i would hope that somebody will finally get the leadership and do the structural reforms. frankly, whatever deal we cut today or tomorrow doesn't mean

very much as they haven't meant that much in the last five years. all these three months, deals and negotiations, me talking to you and you talking to the world, you see we are in pretty much the same situation we were before. are we finally going to bite the bullet and do serious structural reform? make our country attractive? that is the bottom line. we will be able to have investments and we will be able to have a positive, productive base. when you look at debt as a percentage of gdp, north of 170%, is debt just as unsustainable now as it was when they were looking for the initial bailout? mpbecause it was part of the body in 2009, it was known at that moment that the debt would

increase to 170% of gdp. but that was expected to be one of the curves where we will be able to have growth. therefore, when you have a high debt but you grow productively, that doesn't matter as much as we get unfortunately, that is not the case. yes, today, we are in an unsustainable debt level because we are continuing to not be very productive. we very much depend on lending and ability to borrow. we depend on external -- look at the balance of trade. reduction of our balance of trade by 25%. how can that be sustained? we cannot continue having this huge, growing debt to gdp and inability to produce. we are basically struggling ourselves. >> does greece need more debt relief? is that the road we are on?

ofwe need a combination structural reform attached to debt relief. buthould have debt relief, with a condition that every three months, there is going to be a review of how well we are doing with reforming our administrations and bureaucracy. we shouldn't just have one without the other. up, youto wrap things join us today because there will beat a discussion in brussels on the possible extension of the bailout program. where is greece left if they don't get one? -- wewill be able to pay are back pretty much to where we were in 2009, 2010, 2011. if we don't get a deal today, we will be able to pay our big bond in march but we will not be able to handle our

economy. there will be a possible default. that is a problem. my concern is that we can't keep reducedgreeks that have their salaries by 60% and their pensions by so much that five years of so much austerity has reached us in may of 2015 with no real change from where we were in 2010. >> no real change, that is the message from elena panaritis. fantastic insight on the situation in athens. thank you for joining us this morning. coming up, more headaches for sony. the electronics and entertainment giant is reportedly hit by another hack. for now, a quick check of the european equity markets. not a great start to the week. ftse 100 down by 0.5%. cac 40 off by 0.3%.

the dax just in negative territory. 0.2%.se mib up stay with us. ♪

>> welcome back. i'm jonathan ferro live from london. these are some companies on the move. $2.8e vein has offered billion to buy a controlling stake in sika. biggestbain is europe's

building material supplier. is the biggest loser on the stoxx 600, down more than 12% this morning. former ups global management ceo has been appointed to leave australia's treasury department. tony abbott says that he will begin a five-year term on january 15 of the next year. the change comes as the nation grapples with a deteriorating budget outlook. merck is said to be in talks to buy a startup for more than $7 billion. merck would pay about $100 per share. the deal could be done as early as this week. another company we are watching this morning, sony. the company reels from the hacking of its entertainment unit. it appears its playstation network may have also been targeted by hackers. here with more is caroline hyde. gamers couldn't access the

playstation. you have to fill me and. how does it work? >> if you are using the network online, you found that from midnight hour time till about 2:30 this morning looking at u.k. time, already the connection problems have ended. they said everything is back up and running. they say they are currently investigating the cause. you were prevented from getting online if you wanted to play a game. you need an online connection. the people taking the credit, i guess, they were sending out tweets saying, psn login offline. this is just after they celebrate their 20th anniversary, the console maker. of course, after the north korea-related hack that drilled causingy entertainment,

access to films that haven't been released yet, and also employee data. aftereally is just a week they are reeling from that attack. >> i understand what the initial hack attack was about. i don't really get what this one is about. before, hurt microsoft right? >> it also hurt sony before as well. back andeep on coming haunting these sorts of companies. the microsoft xbox network only last week was affected by these sorts of problems. claimedquad righteousness on that one as well. , because whenurt you are trying to login in, you couldn't play some of the games. interestingly, this happened back in august as well. it was sony online entertainment and psn that was targeted. they went as far as to have a bomb threat upon the president

of sony online entertainment. his flight was canceled because lizard squad actually claimed there was some sort of bomb issue. the fbi got involved. to disband. started it was understood that their identities were exposed. that happened back in august. come september, they are at it again. we see a repercussion of what happened three years ago. we saw sony's network off-line for 23 days, almost a month. it was april 2011. they were hacked back then. 77 million accounts were stolen. it was the largest data breach of its kind at the time. it is a reoccurring theme. is going toing, it get even worse over christmas. lizard squad have put a tweet saying, this is a small dose of what is to come on christmas. gamer, you should

be socializing with your family on christmas. >> caroline hyde, thank you. one stock on the move this morning, air france, one of the biggest losers this morning after reporting passenger numbers that rose 0.4% in the month of november. the stock down 2.6 percent. you compare that to ryanair, you get the picture. a down day across much of europe. ftse 100 off by 0.3%. big gains in the docs on friday. a little bit of a reversal this morning. 22 points. by about stay with us. ♪

>> welcome back. i'm jonathan ferro live from the city of london. it is almost over for us. guy johnson joint us now. welcome back. to work. >> [laughter] nice to see you. excellent. good to be here. we have greece on the agenda today. beuspect 2015 is going to greece back on the agenda. today we talk about an extension. they are trying to get the last bit of the previous bailout done. they need an extension. what this may end up doing is, undermining the current

administration, we could see snap general elections as early as january-february. he then i on greece. this is one of those stories we haven't been talking about much but it may be, more towards the center of the distribution curve. >> looking at the polls over the weekend, 23.4% for the ruling party. it doesn't really matter what gets agreed in the coming weeks. you get a snap election, tear up the script. >> game over. absolutely. you've basically got to start again. i assume they are going to turn the rhetoric into reality. we are going to focus on that. we will talk to a company which provides a lot of the backend stuff for companies like uber and airbnb. really interesting day to talk about this kind of stuff with the sony hack story coming in. we will get his take, the ceo of

the company. how -- get his take on what do they do, how do they cope with these kind of things? we will talk about that. the shanghai chart just blows me away. when you see a chart go parabolic, you either have to get on board and say that it is going to carry on, or you get short. which one is it? >> the bank of international settlements, are they on to something here? >> you've got to be assuming that that one is going to unwind. it will unwind fairly aggressively. nothing goes up straight for very long. that is what has been happening with the shanghai market. you get short, you get on board, it is a big question. here is a picture of the markets. the italian 10 year, record lows on friday. guess what they did on friday,

they got downgraded to one notch above junk. keepsalian 10 year yield going low, low, low. down by 200 basis points. quick check in on the euro, one euro buys you $1.2266. the ecb governing council or member saying that high inflation will slow further in the first quarter of 2015. we see a massive weakening in the euro area. germany is contributing to the downturn. by 0.1%.off a quick check on the broader equity markets, opened a little lower this morning. ftse 100 off by 0.4%. 0.2%.x down by i said there was a big rally on friday, there was. a lot of talk about what the ecb might do. if you want to talk markets, you know where i am. i'm on twitter. "the pulse" is coming up next.

good luck for the rest of your day. ♪

germany's finance minister says greece may need more time to bring down it step is its before leaving its bailout program. victim finds itself the of yet another possible attack as its playstation store is taken off-line. >> china's stock market boom continues. check out this chart, the shanghai composite moves above 3000 for the first time since 2011. the right-hand side of that chart makes very interesting reading. good morning.