react? it is decision time later this morning. updatehours, will get an on how much money was lent out to the biggest banks. these of the stories we are tracking. we have another down day. and 35k at futures down points lower. let's get the market open from caroline hyde. >> thank you very much. the risk sentiment slides further. not by much. expecting a fourth day of decline when it comes to european stocks. and oil isy concern in freefall. saying the prices are going to fall further.

it is the lowest in 12 years. below $65.ng oil a you are looking at equities and atrently looking at it up $64 and below the lowest since 2009. that is a key concern. you have worries about greece and russia. will they or won't they increase interest rates. let's check in on the ruble. we are seeing a slight reprieve in the ruble. expect the central bank to raise rates. they cannot and the freefall. we're seeing it impact the ruble fallingmarkets are down.

japan is not looking any brighter. we have not seen clearer moves with the yen. the yen strengthened earlier today. thee is concern about orders with the machinery orders and the economy. we have so much on our minds and our concerns. here's an interesting one to keep an ion. could we see the refinancing rate auction later today? how much are banks expected to take? the second round of long-term cheap loans is going to banks. we want to see more money going into the balance sheet and they say they will boost the balance sheet by one trillion euros. it is unlikely to happen. look at what is happening in the markets. the markets are showing risk

aversion and we are showing germanoming out of bonds. we are seeing them borrowing on the downside and a quick look at stocks to watch. .e have a few clear lookouts it could downgrade the overall outlook for the earnings. that is what the press is reporting. it is all about brazil and telecom. we could see telefonica make a play for the assets. it is the key issue over there company we see the picked apart and looking at telecom italia. assets -- assets?italian >> what a 24 hours we have had.

dropping below 65 dollars a barrel. the lowest we have seen since 2009. demand is the lowest. u.s., thiser to the one has to be the candidate for the chart of the year. we have the chief investment officer. it helped to manage the euros. -- 93 billion euros in assets. i want to talk with the oil price and how much it shapes your thoughts for next year. >> it is a big factor. for the developed world, you look at the u.s. economy driving growth and consumption is such a large part of gdp. it is the immediate benefit to the consumer every week. the have extra dollars in their

pocket. that is good news. next year, the theme is diversions, a theme you subscribe to. let's talk about markets and what it means. they are taking some pain. do you still like u.k. equities? >> we do. the economy is growing nicely. think this is something one has to be aware of. away, somediversify of these companies are very attractive against what is an unattractive bond market. it looks interesting. >> did you stay away from the oil majors going into next year? >> the marginal profit has fallen sharply and the capital expenditure program is a long run.

cash can become affordable quickly and you have strong balance sheet -- strong balance sheets. there are a lot of companies that have marginally finance themselves and expanded rapidly. >> you like u.k. equities. on u.k.to get your view equities and sovereign debt. would you bet against the sovereign debt market next year? >> the diversions that you mentioned was having the economy going in different directions. one of the things about oil, if it stays at the current valuations, it is zero. you have to ask if interest rates are going to go up. ,f they not -- if they are not are they going to stay low? you have europe.

i would not see bond yields going up. >> you talk about convergence and everyone talks about the diversions. is the fed going to height into that? >> the markets increasingly think not. there is a feeling that they want to get one hike in to test the water. there want to make sure the system can withstand it. reason for rates to be hiked. glut -- global growth remains anemic. >> what does this mean for the treasury market. the bet was that the fed would move and yields would have to go went lower.se they what is the outlook for the treasury market? >> there is the fed being the marginal buyer and inflation

falling away. than itss attractive was. i do not think the total will be that appealing. with inflation what it is, it is more of a support. >> i want to talk about the story very quickly. yields have gone lower and commodity prices are lower. that a little bit of -- is that a little bit of a head fake? catastrophe for venezuela. >> there will be some pain felt -- some pain felt. it is a development for the

world. >> will get more of that after the break and his view on the central banks. here is a stock on the move. we will talk about the ecb and a weight the results of the latest effort to expand the balance sheet. stay with us for that.

>> welcome back. it is time for talk. i want to get something that the ecb president said. we are convinced that a program involving sovereign bonds falls within the mandate and can be used within the pursuit of the mandate. not pursuing the mandate would be illegal. rateandate is an inflation close to 2%. inflation is at 0.3%. mandate, the that goal is to expand the balance sheet. announcement of the long-term refinancing operation. bad news could be good news for quantitative easing. let's go to hans nichols and berlin.

sure would be looking for any blinking lights? gauge on the economy. take-up ofss for the the long-term refinancing could pave the way for faster implementation of quantitative easing. of evidently. mandate tohe legal do quantitative easing. clearly, he does not think he needs any consensus. grow the balance and the median has some higher ones and lower ones. there are a lot of previous loans coming due.

consensus for this month and you are still short and growing your balance sheet. quantitativet have keep hearing about data and a little bit. >> you say 148 is the median estimate. 148 does not really mean much. do i have a number? does that mean it is on? fastereans it will come and you will have another data point. they say they will not be surprised to see the uptake.

the median seems to be what the market is expecting. anything less than that and it will be accelerated. seeing that.d to let me revise that. there are few that have less invested in it. in mark bring back burgess. they intend to get the balance sheet up. is a clear to you they cannot do that? i think it will be a struggle for them to do that. is theuggle they face

background opposition. it goes against almost all they believe in. just marioit was draghi, we would have had it a while ago. >> you manage a big chunk of change. how do you manage the changes from month to month. not pursuing the mandate as a legal. >> i think that is part of the power struggle playing out. we are at a stage where it is necessary. >> we can debate whether it would work or not. in your view, what does it mean for the markets? where it has been implemented, the stocks have gone up. i look at the bond market.

they need to introduce it to get it down. -- down? i do not. pushing on a like piece of string. there areo doubt and some large global exporting champions. margin and it is a positive. >> we talk about if this is a blessing for investors or not. is your job going to get easier? the stocks are up in the bond yields are low. do want by commodities? probably not. finding value is increasingly

difficult. >> we talked about the outlook. i want to gauge some of the moves we have seen. and thear yen dropped next day, it does not matter. we have a messi day in the treasury market. everybody moves on. have you seen anything like this. >> no. it is unprecedented. there were big things going on and japan was doing gdp. liquidestors are less and they no interest rates are low. they are less willing to hold inventory and the market is not what it was. some days, it is moving against

you. >> the report released talks about markets. you about theare fragility of markets? >> it is certainly a future. beennk investors have forced to own assets that will come back to haunt them. marketat the high-yield index is energy companies. i think what investors start getting the annual statements, they will see the return is not what they expected. >> thank you. coming up, phoning it in. another takeover. getting a big profit and we will tell you why after the break.

>> welcome back to on the move. time to bring you up to speed with some companies on the moon. a manipulating probe in the u.s.. are going to use tools to take advantage of less sophisticated clients. ando takes a step closer that is after the the latest of profit warnings.

lightning and calling back via kohl's. the latest recall for airbags. another we are watching is telecoms. there is another multibillion-dollar acquisition in the cards. here with more is caroline hyde. >> it is brazil that is hot hot hot. telecom italia is the big stock on the move because it turns in brazil in brazil may be bought for $15 billion. this is interesting because brazil is all about consolidation at the moment. there is too much competition driving prices. we are not seeing people picking up the smartphone.

the government says, we want you to invest in the infrastructure. what do the players have to do? the have to carve up infrastructure. is one of the wealthiest men in the world. togetheree players take the two thirds owned and pay. what isthe premium on valued, including debt. taking a percent of tim going forward to be things up. owner picks up the assets because they want to reduce. we then see telefonica divide

clearly and this is working out how they can be a bigger player in brazil. >> the big question is, is it enough. worth more.k it is it is quite a long story. i am sure they will gather and investors will hope they can get a premium. offering andare on we know the players have stated it. sayave have them previously they want to be in the game of you cannoton and stop the man. think will be interesting is

how it plays out going forward. we know they are willing to come to the table. nice.l be pretty the other players have gotten in on it and what a premium. >> amazing. coming up, the ruble is on the run. our next guest thinks they are on the brink of a crisis. after the break. here is a picture of the markets. a fairly boring open. the ftse 100 is up. the dax had a slight rebound. the dax is up 17 points. plenty to discuss after the break. we do will talk about the swiss national bank. twitter andow me on

we

>> welcome back. into the trading day, it is a flat open. a want to bring you some news. rates are unchanged at 0%. the have left the floor. let me bring you some of the breaking headlines. the unchanged rate. about whatpeculation they may have to do, given the pressure on the floor.

yeardp is around 2% next and they say the swiss franc is to. let's get it up on the screen for you. and offthe move lower of the back of it. not listening so much to the words. watching the actions. edwards at thea touchscreen. the aircraft storycturer today and the may want to get be relevant. after asubstantially number of really interesting statements. they said that the number was likely to moves -- move

sideways. so, that shook things. then we have the double-decker aircraft. the company said they may have to think about discontinuing gettingsoon as 2018, market interest. they have not found a single buyer for the aircraft this year and are going to make a profit on this. forsame cannot be said 2018, leaving them with the question of discontinuing it or having a new engine that will make it more attractive and energy-efficient for potential buyers. story thatlia is the caroline hyde has been following. both are moving higher and relates to brazil. people familiar are telling bloomberg there is an offer for the number two mobile business.

what does this have to do with italian telecoms? it is telephone at -- telecom italia with it. you see that in the share price. owner announced nine-month profits this morning in line with estimates so far. what they are saying about training -- training is interesting. andlook at revenue of december. company is trying to paint a picture of something recovering a bit. it was helping to offset some of the weakness. apparently, it was pretty warm

in autumn. >> freezing this morning. here are the top headlines. the u.s. stocks slide the most since october. the demand forecast drops. the nikkei and the shanghai composite drop and japanese equity markets are led by exporters after dropping the most. recovery after a a hitting a low yesterday. yearrowth will fall next to the lowest level since 2003. sayshile, the oil minister the market will correct itself and questioned a need for a production cut. >> oil is having an impact on russia. is as the plunge and

oil and western sanctions threaten the currency. against the dollar and 2014. sticking with russia, another method is selling international reserves. take a look at this chart. our next guest says the central bank may have to use the bazooka for the full-scale financial crisis on the way. joining us now is the strategist will stop that was your chart. it shows they are fighting. >> that is correct. week is intervention last and it is not working. sold billions of u.s. dollars to stabilize the

euro. they will have to use a bigger likely and it is quite that they will have to raise interest rates. the question is by how much? i believe you're looking for 250 basis points. out when it is announced. i think that, if you look at the expectations, when i was writing my report last week, i was thinking about the fact that the ruble is still vulnerable unless dramatic hikes are taken, it will continue to weaken and that will have negative implications in november and in double-digit

territory in the coming months. will have toank raise interest rates. situation are with a where it is recession versus financial crisis. if you raise the rates aggressively, you're making it inevitable. andt inevitable next year does russia find itself in a place where it is trying to isolate itself from a financial crisis? about preventing recession at this stage. and the a big amount russian economy will contract next year. preventit tries to bigger problems in the coming they'rend that means going to convert savings into

dollars to destabilize the ruble. about iteaking happening in turkey and they aggressively to start unwinding the emergency tightening measures. situation does not mean they will have to keep policies tight they are hopeful allow theuble will unwinding of measures at some stage. >> how much of a curveball is if oil the dilemma , does it to travel make it harder?

and itave the ruvell looks like it will stay around current levels. think, at that level, it means it will not be high enough for the russian economy to escape recession. in the best case scenario, we contractionabout a in economic activity in russia and i think we may be importance in terms of oil prices. the outlook for oil is not looking positive from the russian perspective. argue it would be a positive outcome. >> let's talk about the brink of the financial crisis. youinterested to know what

you think it would look like in russia. we thinking about a currency to that.at could lead i will be looking for that and russian households to start and itating the pace liquidity could issue and have a classic run on the would beh would dangerous. i think it is crucial to -- ilize the ruvell and >> the final question, it isn't that a crisis already? move looksbolic

remember we have to the dollar ruble strengthened at the end of october. again, it is not a really strong argument to take drastic steps at the meeting. and it will not prove sufficient to stabilize the ruvell and currency. forhank you very much joining us this morning. decision time at the central bank of russia in two hours time. the hong the break and kong democracy protests seem to be coming to an end. we'll check in with rosalind chin who is on the ground with the latest.

behind me, members of the police tactical unit are making in theork of the things 11 weeks. you can see they are dismantling there were substantial supplies here and this area that we are standing and now had a where you can come and say part of the protest. so, this is what is going on now. on this area and you will see police lined up.

garbage picking up the street >> on the thank you very much we head to the break, we will leave you with some of that. on the move is back in two minutes.

>> welcome back to on the move. let's get some companies we are let's get the details from hans nichols and berlin. what have we learned? >> this is the shop and we have learned they are under investigation and looking into whether or not they use g the currencyridg rate. this is barclays and deutsche bank. we do not know whether the algorithms on either side are talking to each other and this comes on the heels of a big investigation on currency rigging. a billion-dollar settlement they had a couple of where six of the

biggest banks made the settlement. we do know the shop has installed something to monitor how the algorithms work and want to do the same thing. ands a remarkable story gets the idea that the currency trading and rigging is being done at a systematic and systemic level. new york which up here in a little bit and we will be comment from everyone involved. >> great work. we will move and talk retail now. the profit growth is minimal. what are the takeaways. i'm looking at a stock price that does not reflect minimal profit rises. factorit is up and you in that sales are going well. and itng the money home

is not looking quite as weighty on your bottom line. the decrease is the share. added 3est prices have billion euros to their market cap. if you dig into them, they are being more pessimistic going forward. the markets braced themselves because they knew their rivals have the problems of a warm september and october. whereant the heavy-duty it has the business model that everyone craves. it is nimble and quick. stock.e changing with a proximity and business

model. .hey were hit profits were not that great. clearly, they are going great. , we have talked about russia all morning. >> it is the biggest market and you have to start focusing on it as an international player. the stats are a phenomenon. stores on every single continent in 88 markets. it is very big in the emerging markets, asia, japan, and russia. that is the key problem when you have a volatile exchange market. and adding growing employees.

sure, profits are only -- percent. online and at high speed. it ishe ruble collapsed, not going to do so well for the profit. the yen was down this year and you bring it back this year. you have to remember it will probably hurt volatility. >> thank you very much. the investors are looking what they hear. we head to the break and bring you the picture of the equity markets. , 46dax is pushing higher point higher -- 46 points higher. a lot to talk about. on the move is back. ♪

>> match tonight in tel aviv. up against moscow and seeking to retain. taking a shot at a more lucrative prize in the united states. >> the have the pedigree. the land of the nba is a whole different ballgame. >> the strategy is simple. more tvlan is to get

coverage and have more games played. basketball inave the u.s. and israel and merchandise we can sell in the u.s.. coach ofps that the lebron james and the cleveland cavaliers used to be with mcabee. it is built around a love of celebrity and david stern pointed that out. you have magic johnson, larry bird, michael jordan. anythem to come in without star players makes it harder. >> it could be a problem. about $20 million a year, the same as lebron. the overseas appeal may wane.

the preseason tour proves they can make it in america. the atmosphere is to support i feel like they can have it. >> basketball fans are more likely to come across it on the xbox, where it is sometimes beating the best in the nba. >> welcome back. that is almost it for on the move. guy johnson will be hosting that show. the press are at the top of the hour and we have the report from the bank of england.

that, we'll have details from the ecb and the next couple of hours really matter. you, what is the disappointment? disappointment is moving onto the next step. is a vehicle moving onto the next step. >> that is it for on the move. the dax is up. there have been strong gains on the periphery. i want to check in on the euro swiss dropping like a stone.

actions are louder than words. they do nothing. see what happens. the euro swiss drops. a stronger swiss franc.

>> central banks take center stage. medical news from europe's policymakers. it starts now with norway. day two of airbus in london. shares continue to slide as the manufacturer considers the future of the giant's a-380. kong polys removed barricades and tents as protest leaders pledged to stay in admiralty. will they be able to?