loom. vladimir putin faced tough questions in a conference. we'll bring you the news from that this morning. we are looking at the futures. up 63 points. and let's give you a quick snapshot -- nap shot. that you have to go back to 2011. see a representation of the euro rising and the swiss franc falling. making it very clear full -- make it very clear that if you have a popular currency, we will defend it. the chinese say they will defend banks. there is also that coming back until the first

quarter. janet yellen channels alan greenspan from 2004, using the word, patients. a six month time span between using patience and seeing rates rise. there is a great article written by me showing you the moments. the little bit you want to tune in. when they get going, they have a habit of going quickly. it is up in the united kingdom. openyou have has yet to and you will get retail sales up. european leaders meet in

agendas and part of that that they have is russia. had as the conversation i couple of minutes ago. this is the dollar down and the ruble rallying. you can see the biggest one day rally. what you are seeing is a bit of momentum and trying to hold onto the currency. hsbc says they are worried less about the currency. you wonder about the bigger and more meaningful impact, which is russia on europe and the demand on europe. the propensity to impact the european gross story. clear that they felt that it was contained and it was not 1998.

credit outlot of there associated and that is your market open. you have the equity arising in the ruble rallying. you have the chinese coming to help the banks. what a flurry in the last moments. the taxes up. sap is up. by a few shoes and help them out. >> manus cranny. >> this was still the headlines. the national bank takes the deposit rates negative. could the fed go the other? it makes scholars investors, and .ournalists

plenty of speculation. here is the latest. >> the committee considers that unlikely to begin the normalization process for at least the next couple of meetings. >> what does a couple mean? her response was brief. >> it means to. >> right. do you have that? we're joined by bill. overseen $2.4 trillion in assets. anything you heard that changes? >> next year is about the monetary policy and we see the ecb opening up stimulus. they are managing expectations

meetingsnk a couple of means to meetings. year will end up next compared to where the fed expectations are. they expected to normalize rates, what ever that means in the abnormal world we are in. >> are they trying to be clever? it is simple. patients apparently means the same thing. yellen was more hawkish. >> i think they will keep the as much as they can. they have good growth numbers coming in. on the other side, inflation is important.

if you look at the real earnings, is meager. there are going to be inflation moreures for her to move quickly and she is keeping it open. >> help me out. the reaction was the stocks in the dollars higher. is going toext year be about a stronger dollar and a weaker euro. it will be the underlying fundamentals picking up. u.s. growth could be there if the forward curve remains as it is. they are going to be slower on the rate move and it is going to be good for stocks in earnings. >> how're you set up and where are you putting the money?

>> we believe the fed will be good ford it will be stocks. it will be good for the earnings . i think that is good. there will be big pockets for opportunities. moving the russia story to the side for a moment, there will be significant pockets. potentially a much weaker year. >> i want to talk about switzerland and the surprise move. suggestion of a statement that something happened. what has pushed them to go negative this time around? this is driven by russia and the oil price. stimulus inonetary

the eurozone next year will have implications. they are getting in front of the curve. >> is there a russia element here? on the backething of the story they are trying to fight? ago, we wouldeek we'll seeker euro and it strengthen. you look at the yields and the strength of the euro. you can see the safe haven flows. russia stabilized and you expect some of that to be unwound. we are higher. the ftse 100 is higher. the stocks are overshadowed by what is going on in the fx market. the swiss franc is lower. the swiss national bank takes a

surprise move and takes the deposit rate negative. up next, it is about risk and we will have the latest. we will be live in athens. short.me minister fall

the move. back to on we are 10 minutes into the open. it is about risk. the ruble in the currency market rally. the dollar ruble sinks the most since 1998. let's talk about the move. let's talk about how timely it is. >> the ruble is strengthening hit 80.d 25% since it reassured by the central bank and government .oves

in addition, the finance ministers said they are prepared to spend 7 billion propping up the ruble. so, this is good for him. the other thing i think it investors are less concerned about is the prospect. if you are looking at bank isres, what you see investors and the premium the investors are prepared to pay overtime for shares and a company in london versus moscow, stripping out concerns. they are willing to pay at the end of the day. 5% more than russian shares. if the shares are in london as opposed to moscow, the toes you

the concern about capital .ontrols and buying shares are subsiding. they are still there. 60% that we saw a couple of days ago, in terms of a big premium. aboutis some concern capital controls. vladimir putin is speaking at an annual news conference. we will bring you a little preview. let's bring back in the head of investments. touch anythingto in the market with exposure to russia? >> you have to because schists. is -- over the last couple of days.

interestingly, if you look at the oil crisis, the oil price is driving all of this. it has come down and could go lower. that is going to be a pretty strong pairing for global growth. bottom for the oil price. >> i can think of plenty of reasons in europe. for someone who has managed trillion's of dollars in investments, is there risk? at oil prices where the hard currency debts are exporting through commodities.

you differentiate your exposure to emerging markets. andrethink the effects there will be some good tailwind from oil prices into the forward fundamentals. neutralnet is probably and the currency will not help the eurozone. i do not think there is a strong reason. >> let's talk about another reason why you might want to de-risk. let's get out to allete guy can. 160 out of the 200 needed. disappointment was this? has a betterutin chance of getting the nobel

peace prize than getting a nominee for the presidency. that.as not about hewas about how many votes would get. would he be within striking distance? it is 180 votes that he will need in the third round to avoid the dissolution of parliament after the general elections were called. the result was not a good one. he has lawmakers in his government coalition and only managed to get an additional five to come over. persuasive things for members of parliament to get them to vote for his candidate for president. why might they do that? think they might

not get elected if there are first general elections. this time around, i will vote to avoid the prospect of general elections. those votes are not a given. it will be tough and bank of america thinks it is disappointing and there is no doubt he will have plenty to chat about when he meets with leaders later today. >> thank you elliot johnson. we will watch the stock market. we will get some thoughts from bill. if we get a snap election in about the is all anti-bailout party. is that fair? >> to a certain extent. if they want to be outside of the eurozone, they have to stay within the construct. they wanted to be less painful

and prayer at the heights of unemployment. they want a less austerity package. there will be difficult will be ans and that struggle. they will get to a compromise on the debt repayment next year. it seems like an awful lot to pay back. volatility and compromise. they will get there. >> we go into next year. you have yields over the last 12 months. the market moves in greece have been isolated. are you holding any italian spanish debt and looking to remove the positions? to take it to a different perspective, we see volatility

to add moreates exposure if the contagion moves out. and if we see volatility, we are looking to add positions to the currency. >> there we go. thank you very much. not coming to a theater near you, sony has canceled the release of the interview. we discuss what this means for the company after the break.

>> that is a clip from the movie and it may be as much as you get to see. caroline hyde is here with more. what may or may not happen. >> they are pulling the film. threatsof the escalating from the cyber attackers, it seems they have been bringing down the computer system and launching threats.

remember september the 11th and keep yourself distanced from places. cinemas meant the change. is it in our interest to do it? some of the biggest change. understand -- will do the same. sony has decided not to move forward with the release of the film. interestingly, putting on the brakes. >> a little brutal for the people who made it all stop this is embarrassed -- who made it. this is brutal for sony. >> we knew they were upset by

this. moviethe crippling of the computers and the leaked e-mails. the imbalances in pay between male and female executives showed up. we had angelina jolie called a spoiled brat. this has been around as. million making this film and this will cost them hundreds of millions of dollars. what is more interesting is how the u.s. is going to react and i am reading interesting blog. hackers withther political motives and aggravations. follow't have to criminal procedures.

the reaction is going to be interesting. we understand the united states could put out an announcement. they have not been able to know what they say and do. you can't say, we are not giving or trademic benefits benefits anymore. they are isolated. to know how to react to north korea on this if they are behind the attack. that makes the event -- out of journalists. the latest statements. wilde. to oscar matters of great importance, style and not sincerity is the thing. ♪

make the best entertainment part of your holidays. catch all the hottest handpicked titles on the winter watchlist, only with xfinity from comcast.

>> welcome back to on the move. >> the ftse 100 is pushing higher. national. weekends andnc that is the fx situation. the dax is higher. one of the stocks we need to look at? >> i am going green. let's focus on what is winning. we are getting a reprieve on the stoxx exposed to russia.

a key one is a big lender to russian companies and consumers and they have been reassured. today is theinner central bank and the government seems to be instilling confidence that they will do what they can for the ruble and the finance ministry pledges to support the currency. germany, you were talking about the dax. the biggest software maker out there. moving could help it over the atlantic. oracle put out numbers and profits and sales topped analyst estimates. they said, remember the older players in the application field have seen competition among new players. all of these companies are

competing. data in theccess cloud and do not want to be tied to our less. a warm breezes is coming over the u.s. as oracle the estimates and this is all down to china, -- ng they will accept the ministry of agriculture said that introduces seeds and it looks like it will get more into china. >> thank you. those of the stocks investors are paying attention to. change, the more things stay the same is the message last night. >> the new languages not represent a change in our policy

intentions and is consistent with the previous guidance. will notated that it be appropriate to maintain the current target range for a considerable time after the end of the asset purchase program. >> confused? you are not alone. feeling.n captures a the more you explain that, the more i do not understand it. >> we have a head of strategy. great to have you. that was part of the preview. you nailed it. i am confused. are you? >> mark twain and auster wilde. -- had janet yellen again would dollar still be trading at 116 and the

euro dollar would be 124. she goes out of her way to talk about the strength in the labor oil.t and looking past and theybout the dots are much higher. there is a moving up to raise interest rates and she was specific. they said they would not close the door unless the economy was stronger than expected. andets are thinking june april. >> let's talk about inflation. what the statement gives, the press conference takes away. this is janet yellen and

inflation is heading towards 1%. .hey could hike interest rates was that your takeaway? >> they would want core inflation to be 1.5. andgs like airplane tickets those are affected by oil and iron ore. what janet yellen was saying inflation,s using , youyou get a supply shop do not focus on the demand side. so, she was saying and the fed they do not see the lift off. >> let's talk about the lift off and the timing.

she said, they may raise rates. after october, you know what that takes us to? she says it could be after the next couple of meetings. that takes us to april. do you think they could move in april? >> the answer is that, of imagine a world in which we get get0,000 average and they the 5.5% at the beginning. the answer is that the economy is moving faster than they are forecasting and they always have that. it may not be the most likely scenario. they'res it clear that closing the door on april and not shutting down expectations there. junearket is focused on

and that could be what she prefers. i do not think they want april to be a complete shock. been theakeaway has market being more dovish than the federal reserve. is that the right move? pricing and what the lows of the year, other than the panic episode. the market was very vulnerable do was lean had to and little bit. i think that is what we saw last night. you saw the equity markets and thee is a sense that economy is better.

i want to get your thoughts on this. the swiss national bank is taking the deposit rates to negative. what is happening that is pushing them to make a move. trading on basis points and it is something. the fact that the ruble has and they have an opportunity to take advantage of market stability and the market was not prepared. the shock was higher. i do not think 25 basis points is enough to really create a lift off. i think there is more to come, if needed. ande have had a turnaround

and russia ising fighting. we'll talk about that after the break. coming up, vladimir putin addresses russia. we preview that and discuss the challenges after the break.

>> eu are watching a promo for vladimir putin and a news on statee running owned russian tv. he gives the speech in the midst of a currency crisis. he enjoys approval in the 80's. joining me is steven englander. i want to start with you. how nervous have you been? >> not very nervous. frameworkey have the be any changes would reflected and it would stabilize the economy eventually.

you help manage to billion over in russia. surely you know this. you are getting whacked and the volatility is high. what makes you confident? the efficiency is rising and prices have come down a lot. the long-term outlook remains positive and -- >> do you think the long-term outlook for russia is positive? have they got a grip on the situation? long-term -- even if it -- i agreeistance

that most of what we are seeing is driven by the oil prices exacerbated by capital outflows. the question is important. if the oil price stabilizes and if the macro economic policy makers have a handle on things and are able to take the pain to keep capital within russia, it will stabilize. there are a lot of moving parts and it is not clear how it will evolve. high, whatstay this ?oes that mean for investments >> they are not leveraged and companies have been wary of taking note of that for various 2009, wend in 2008 in and usually,rarely

the levels are less. i would not be concerned about interest rates. some will see increases of borrowing costs and that is fine. debt.talk about dollar how will that -- >> right now, it is impossible to say. my colleagues have not called the bottom. asthe oil price goes down some of the gulf people have indicated, the ruble will be under pressure, no matter what. -- nove policies from the matter what the policies the russian government takes. if it stabilizes at this level where it stabilizes at any level , the interest rates are attractive and we could see

people buying it back. now, we have oil and everything else is the minority driver. >> over the last week or so, there has been a lot of talk about speculative slows. within russia getting out of the ruble? think the market is short on the ruble and that is clear. there has been incentive to push out money and a third factor is that we are not talking the middle of march. we're talking the second half of december and liquidity is horrible. it does not take much to drive

the place. you have seen it with other currencies. combination of all of these and some of the volatility may be artificial. >> i want to bring you in. you are talking about a decline in oil. is it inevitable? >> not at all. 2009, they 2008 or continue to hold savings in rubles and it is different. it is the development. promise thewant to exchange rate. it will increase. in terms of the exchange rate,

are not as into the exchange rate as they were 5-10 years ago. they have been denied many times. importantly, they have been liberalizing and fully open. they at all will flow in and out. i'm sure they will not do it. let's bring in our previous conversation on the fed. what does the rate hike mean for the lights of russia? a massive ripoff. it is small, compared to what the russians are facing on their own. economy, capital control

means you are throwing in the towel with respect to being able to manage your affairs with macroeconomic tools. theme who he get around and the current accounts will probably do it and it looks like they are reluctant to go that route. >> i will give you the final word and you can respond to it. a fed rate hikes. what does that do? >> there is a sensitivity to it. russia is shut out of capital markets. i do not think we care. >> it is optimistic. >> the global head. thank you. thanks for joining us this morning. swiss companies. have to talk about them rallying

after negative interest rates. this is popping after proposing a new chairman. on the move is back. so much to discuss this morning.

>> welcome back. cuba have taken the first steps to normalizing relationships.

the cuban president have agreed to a number of measures. news had a powerful impact on several companies. holds assets that that would benefit from this is listed under the u.s. ticker and popped more than 20% on the news yesterday. in cuba, the stock is getting a boost. obama, a message on ending the standoff. >> this has not worked. it is time for a new approach. >> isolation does not pay is the message from obama. spotlight, it the was not just castro.

have fullwill coverage of the event. we are joined by guy johnson. there is a link there. the stars are aligning. >> living up to the promo. they promised so much. making similar announcements, maybe it will follow similar form. on thejim o'neill program and we will listen to what prudent has to say. we will listen to what happens next with the wider story.

capitalist talks about what is happening with the global story. two really good voices to talk about the business environment in which we find ourselves. >> i want your take on a headline that dropped an hour ago. >> i did a quick ring around and it seems to be that there are a number of critical lines in there. over the last few days, you need to take that. they had a meeting and they did not make the decision. something happened and what it is is if becomes too expensive to defend that and you need additional ammunition. it is not a big surprise. -- went back and said the

that it is a russia story. >> precisely. a centert is becoming of the distribution curve outcome. and other central banks have to react to that. i think it is part russia and part the ecb. coming up withis the polls. here is a picture of the markets this thursday morning. the ftse opened a higher and stayed higher. strong gains in europe. the dax is up. is story for the fx market the frank popping up higher. ratey take the deposit

negative. they are unable to control. up .33%. if you want to talk markets, follow me on twitter. have a great day.

>> houghton takes to the podium. will the president come out fighting? >> the swiss national bank cuts its deposit right as defending the franc against the euro becomes more expensive. >> interview over. sony pulls the release of its film after threats of violence by hackers. good morning. you are watching "the pulse."