message to the middle class. president barack obama delivered an optimistic state of the union address and comes out swinging against growing wealth gaps. those are the issues that we are watching a term of morning trade. futures are indicated to open a little bit higher despite the disappointing news from the bank of japan. let's check in with caroline. >> a look at how we are opening up because we are expecting that rally to continue. can we extend that seven-year high we are managing to have fostered on the stoxx 600? so much anticipation for tomorrow. will mario draghi unleash that extra bond buying? will we get into sovereign debt? willoughby 550 berlin euros -- billion euros? the market seems to think so. interesting moves in asia overnight. we saw a bit of a mixed reaction

to what is happening in japan in terms of its central bank. stocks pushed a little bit lower as the inflation forecast was cut from 1%. still so far from that 2% target. very difficult for kuroda to achieve. tumbling oil prices not helping. we are seeing a bit of a move in terms of stimulus. we're not seeing added similars which is why it is trading lower. shanghai composite. look at that. of almost 5%, rebounding from that -- up almost 5%, rebounding from that sudden slump on monday. coming down on brokerages who are letting unqualified investors to get in on the chinese action. we are seeing a recovery. shanghai trading higher. gold trading higher today. anticipation the ecb will move. let's look at oil. we were just talking about it. it bit of a rebound, of 1.2%.

let's have a look at hp billiton. it is also one of the biggest investors in u.s. shale. she'll has been driving down power prices. it will be cutting the number of rakes out in the u.s. by 40%. we are seeing that retraction in in investment in oil. asml driving higher on the results. clearly good moves for them. maker of equipment which makes chips in your smartphones. dixons smartphone. -- car phone of almost 4%. they had a stellar blacck friday and been a roller coaster event after people move the way from buying.

they had a stellar boxing day. >> you have a special guest. francine. >> the million-dollar question. we are excited to have you with us. thank you for coming on. davos is one of those great firms for people talk about ideas. we talk about the world economy the price of oil. the sense from us is that a lot of people do not know where we are going and that they are here to debate and figure out the answers rather than having the answers coming here. >> that is absolutely right. we had a big interrogation one of the keywords of the next year over central banks. we saw what happened last week. mario draghi -- is going to have a big direction on what happens

in 2015 and the economy. you have other economy concerns. the price of oil. globally we believe was good news. it is going to be a key issue in 2015. interest rates, central banks, geopolitical uncertainties. >> doesn't feel more uncertain now than it did last year? we have much more questions whereas last year it felt like we had a terrible time after the recession and things were looking more positive. >> that is a tough question to answer because i think we sound like a broken record year after year. the reality is it is a fact of life in the world economy as a gets more interconnected. he gets more and more difficult to predict what kind of pieces of information we will have. if you have crisis reforms, liquidity has been reduced in key segments of the markets. you are likely to have more days

like that. we are very lucky but we are long-term in esters. -- long-term investors. >> central banks and the oil price. incredibly relevant. a meaningful impact on people possible lives whether they know it or not. as you look at the story in 2015, if you think about the elections we will be fighting, like greece on sunday, the british election coming up shortly. you heard the state of the union delivered by the u.s. president talking about the middle the income inequality in the world. do you think that is a base that is getting a loud enough voice, will get a loud enough voice? >> i think it will get quite a loud voice this year. qe was probably the right answer to the crisis. we needed to save the financial system. i think what is emergency is --

what is emerging is the redistributing. it has contracted to increasing asset prices. as public opinion wakes up to that reality, it is going to have an impact on political results. we have elections coming, very big ones. we have not found a way to run democracy in reverse. [laughter] >> democracy is pretty pivotal to that process, but nevertheless there is a certain question about whether business leaders themselves -- you are smart guys. there are smart men and women. >> that was hard, though. >> you think the business leaders are actively involved in this story enough? the world is burning in many places right now and the

politicians, the senses they are struggling to find a solution to this. do you think the business voice is playing a big enough part to do with the ongoing issues? >> is a tricky issue. maybe because i have been a politician in my life, i approach politicians with a lot of humility. i think they want to remove difficult banks in their world. it is very, very hard to run a country, let alone continuing to reach in on a planet. we have a lot of customers so we will never be partisan. in the u.k. i have 7 million customers and i can assure you they are spread across the political spectrum. good business and politics do not mix. what we try to do is to always remind everybody of the rule of business, the role in society. if you take insurance or are a long-term investor most of the infrastructure you see around you in western europe was funded by insurance assets. we protect people.

they go to work in the morning because they know their houses insured and they know their car is insured. people don't get lost in the political debate, which is always toxic. my worry for europe in terms of politics is the rise of the extremism. it can lead to a false consensus at the center. if you look at what happened in france because of the election and they went to the second round. they won with 80%. 80% is not a national majority and it can lead to a kind of paralysis. at a time when europe is in desperate need of structural reform. my wish is that we come out of the elections with clear majorities so that governments can focus on a clear job, which is focusing on economies that

have negative demography and unbalanced budgets. >> the easiest way is through growth. the number is not growing. there is a question mark over the whole global economy because oil prices. is there a danger that the oil prices indicative of slowing demand generally? it is not a standoff between shale gas producers and opec and are you concerned about world growth? >> we don't think so. we think the demand is marginal. it is really the politics of opec combined with shale oil in the u.s.. we see a decrease in the old price as timely. lucky, even. if you look at the entrance the great news is the u.s. is back and strongly. it will be amplified by the decrease in oil price which improves consumption and

producing power, which is key to the u.s. economy. if you think about asia outside china countries like indonesia the decrease in oil price is oxygen. it is a fantastic boost to economies. they will do well from it. it is a mixed picture. we see it as a timely boost to the economy and even in places like europe, where there is a lot of debate on whether the recovery has trickled down. we are able to increase wages. that is it significant increase to purchasing power. >> one final quick question. he said you approach politicians with humility. you have been in the business for six years. >> i have been out of politics? >> you have been at prudential now -- you're going to stick around a prudential? do you have any place to go back to politics? >> no, i have no plans to go

back to politics. i failed spectacularly in that field. you have to draw the lessons from your experience. [laughter] >> are you going to stick around at prudential? >> i'm very happy to be at prudential. a great company, great teams. what i really believe is that is no so important, but what counts is to have a great team. it is the team that is moving the company forward. >> thank you so much for joining us and braving the cold weather. tidjane thiam ceo of prudential. we have plenty more breaking news and exclusive interviews throughout the morning from davos. >> great interview there. guy sort of wooing them before the big question. see you later. we will take a quick check on the equity markets. a seven-year high continues. six days of rises in equity markets. we haven't seen them just before christmas. london up .4%.

there is a lot of speculation out there. if you invested in shale, that was some of the big boys on the footsie. paris trades and 44.58. the dax at 251, almost flat on the day. ♪

> i am manus cranny in london and this is "on the move.

we have reports that telecom italia has started a procedure to present an offer for shares it does not own. telecom italia is putting together an offer for shares it does not own. that is according to radio. all of italy is in focus as the popple r rip tanks -- populari banks are revolutionized. a buyout could be in telecom italia shares. we keep an eye on that particular stock. full steam ahead for the bank of japan. the nation's central-bank continues its fight against disappoin -- disappointing inflation. that is down from an earlier projection of 1.7%. it is part of a global theme we are seeing.

central bankers fight for inflation. irony is never lost on us. micah franklin is with us. all deflation apparently not bad deflation. when you see the bank of japan they are cutting back on their target. the ecb more likely going for full steam ahead qe tomorrow. you have this disparity. where are we in the great rate debate for equity markets? is it low rates, no hikes for the rest of this year and keep on trucking on the equity markets? >> on this point with the u.k. in the u.s., if the economy recovers more quickly than interest rates will come in sooner. that is the basic law of the markets at the moment. my instinct is that they will come in later and they will come in second half 2015 four 2016. >> i was going to the notes you

sent across. one of the setup pieces at the end was that the s in the p -- the s&p 500 working for they so often 2015. comparable to the times in 2000 and 2007. that fills me with fear. >> that is what the technical position is suggesting. we have to live with the real world after the event. you can't make an investment strategy out of that but you would be full to nor. i'm not the only commentator that is highlighting this. there was an amber light flashing we have to recognize that. >> with that light flashing, it takes me to the polls. we are speaking to lots of billionaires and dollhouse -- in davos. they are worried by global terrorism, falling oil prices vladimir putin's stance on crimea. doesn't match up with your stance for equity markets? >> yes.

i worry about what vladimir putin does. i would keep a close eye on him. i think all of these things come into the mix. we've got other issues, more pressing issues like what is going to happen thursday with the european central bank what is going to happen sunday with the greek vote. all of these factors can move markets in a short-term. we saw last week with the swiss national bank the impact that had and that came from left field for most people. >> one question i like to ask on the show is volatility. i love fix. i love these stocks. maybe it is my background. as a fund manager, which you like a little bit of insurance in 2015? >> i think you are obliged to. this year will be volatile, i'm sure. there are so many variables and if you are trying to assess the world on a fundamental basis i think it is very difficult to

measure what kind of impact this will have on confidence in the markets and ultimately that is what matters. the value of acid is what someone else will pay you for it. if there is no confidence, you will not get any money for your asset. the view we take is that for the last year, the ftse 100 was pretty well flat but we were able to trade the volatility in the market to the benefit of our clients. you have to do that. you can't just sit and hold as you have done in the past. >> we had your vase liam's -- we had gervais williams here. i know you are more just eric this -- dexteritous. >> customers have guidelines. look at what is happening with treasury bonds. there are people taking a view that deflation will be a big theme over the next couple of years and that is the only way they can get the returns as long as there is not any sovereign default anywhere. we have to ignore its that.

beyond that our emphasis would be on achieving capital gains, even if we have flat markets in terms of point-to-point. if we have volatility, we will try to exceed that. >> we will leave it there. is a busy day for us with davos. thank you for joining us. we turn to the u.s. president mr. obama. he delivered his sixth state of the union address last night with a strong message to the middle class. >> middle class economics works. that is what middle class economics is. middle class economics. middle class economics. and that is why the third class of middle class economics is about building most competitive economy anywhere. ♪

>> president obama delivered his sixth state of the union last night and his main message was that the economy is healing. the nation must start to close the wealth gap, a message i'm seeing reflected in some of the tweets as well. this is a president that has really struck an optimistic tone but he did not set challenges to congress, did he? what is he up to? you watched this man in congress for a long time. >> this was essentially an economic victory lap. it was probably a victory lap president obama has wanted to

take for a long time. finally the data merits it and supports it. in terms of laying out his agenda, it was aspirational. a lot will not get through congress because it is controlled by republicans. you saw him try to set the terms of debate for 2016. he tried to claim credit for the economic recovery and claim the revival is real. >> for all the tasks that lie ahead, know this -- the shadow of crisis has passed in the state of the union is strong. >> most of the proposals increase on capital gains all the way up to 28%, a new fee on banks that have assets more than $50 billion. most of those will go nowhere. he also talked a little bit about the energy policy. see to be mocking republicans for their insistence that the keystone pipeline get approved. it was well received on the progressive side. elizabeth worn was pleased.

a couple areas of potential compromise, corporate tax reform and potentially maybe something on cyber security. also maybe on trade. you have the trade deals but in many ways, this is about setting the stage for 2016. >> it is always fascinating to see these state of the union addresses. as you say, will any of it get through? some people say he is a lame duck president and it was all theater, but cyber security has really caught the mind, hasn't it? with the sony hack, with paris. where did it feature in the speech? >> you look at the potential areas of cooperation and cyber security has to be pretty high up. this is how president obama put it to republicans and democrats in the audience. >> we are making sure our government integrates intelligence to combat cyber threats just as we have done to combat terrorism.

tonight, i urge this commerce to finally pass the legislation we need to better meet the threat of cyber attacks, combat identity theft and protect their children's information. that should be a bipartisan effort. >> the feeling in washington is that this was a speech about 2016 passing it on to another president. it is really next the nine months. some would say six months. you have to do something for the summer starts. then the presidential campaign gets into full swing. one final note on this -- president obama's approval rating is getting closer to 50%. he is below 50 but he is up by some surveys close to 10 points where he was two months ago when he lost those midterm elections. manus? >> thanks for that roundup. he has been chomping at the bit to get that message out that he has been responsible for the

economic recovery, not the fed. there you go. we had back to davos. we talked to francine and guide. -- and guuy. what are people saying on the ground? ♪

>> you are welcome back to "on the move." i manus cranny. 30 minutes into the trading day. your seven. we are on a seven-year-are equity markets. let's get the specifics with caroline hyde. >> it seems to be about the italian steam showed today. sweeping moves by prime minister renzi yesterday. this is the leader in terms of the stoxx 600. these are cooperative banks. these have been shaken up by the italian government. they have become joint stock

companies in 18 months. it basically takes away the power of the few in terms of shareholders and abolishes rules that restrict the size of a single investment holding. clearly they are moving to make it easier to file for the companies. m and a good be right. this is transformational move by renzi. banks are now more attractive in italy. the most sweeping italian banking legislation in more than two decades. keep an eye on bonk upon velarde -- banca popolare. you should be speaking to john farrell if you need the tie-in cannot -- the italian pronunciation. this is the company that makes chips that going your smart phone. of over 4% because profits are good. they say it is going to keep on building. they want more chips for data

storage information processing. companies are buying up their big machines. they also do a one billion euros share buyback. that was tasty if you are a shareholder. sports direct. you see it on the u.k. high street. shares are down 4% because the founder of the company is selling shares, up to 170 million pounds stake. he owns newcastle united, of course, the football team. he looks like he may be inching his increase in terms of what are we doing for ranges? it is about cashing in on sports direct, down 4%. >> thank you for that roundup. let's focus more on the currency. stealing the headlines in case you haven't noticed. that is the swiss franc. it is gaining in capital this morning.

they are on the tape saying no major impact at the moment. there is euro-swiss at the moment. let's get you davos and talk about the central bank. it is president thomas jordan who arrives in davos today. we have guy francine, and johnny faro on your left side. >> we found him. >> you took him out of the brasa rather than the pub, did you? >> he was on the trail. most ceos in the world want to speak to one man and he is the central bank governor of the swiss national bank. he is due to arrive today. >> we think he is coming today. he will be driving up and everybody -- everybody is going to want to ask him a few questions. >> he is not due to speak publicly which lack -- he is not due to speak publicly. >> which he usually does. >> john farrell has been trying

to track him down. interesting -- jonathan pharaoh has been -- jonathan fero has been trying to track him down. >> i imagine ceos not happy with him. if you had a most wanted list for davos is at the top. if you are a swiss ceo -- >> what about -- >> i don't know. he is a swiss ceo that hasn't unhedged position when it comes to currencies because he thought he was going to get a cap on the swiss franc. why did they do this on a random thursday at a random time? why not until friday after the close? not everyone will hate this guy. the men playing the piano is happy because he got a big pay rise.

>> if your money is in the swiss bank, it will work for you. i think these are the ways these are going to come. how does the timeline work? you come out and say, fine don't worry about it. and then something clearly changed. what was it that made that change? >> in fairness to the policy at the swiss national bank, it is two days before to get rid of the cap. maybe you said it is not a center of monetary policy, maybe things would have moved. they got rid of the cap. >> a lot of officials did not want to be named, but they were happy that we cited them and they said they did not have a choice because at some point they had to do something about it. it is unsustainable. one person went as far as to say as i don't know why the banks did not read. this was not meant to last forever. >> when we talk about the ecb raking the cap, what broke the

cap is the eurozone. the eurozone mess when they introduced the cap, they never expected to keep this 120 43 years there are questions to be answered. some of the central banks. you have a negative deposit rate that could get more negative. what are the biggest deposit rates is the -- one of the biggest deposit rates in the country. >> it is unclear what the difference would be. less volatility on the markets but in terms of total decline, it may have been the same. >> did he expect it to drop to parity? did he really expect that? what we have to think about as well as when you liberate an asset class, the currency, what is the market for you and how quickly can you find the market

value? >> we look forward to hearing that when he shows up. what exactly he has to say for himself. >> hindsight is 2020, right? >> we are going to be carrying on a conversation. manus will be on the trail. we will be back to you. >> enjoyed davos. look after him, fran. keep him on a leash. >> which one? >> both of them. you're in charge. we will see you a little bit later on. have a great davos. let's turn attention to rob a bank international senior fx strategist james foley. i'm fascinated. talk to me about the liquidity in the market at this moment. is anybody trading danish kroner or swiss francs inside or have you moved to the margins?

>> what is so small from a historical point of view what is true is there has been extra flow on the danish krone. perhaps some speculators trying to get it in after the fall of the swiss national bank. i think this is a different circumstance. the danish krone is not a safe haven. they are probably quite right when they say they have the tools to protect that peg. in terms of the swiss franc, the markets reeling. it is difficult to forecast where the value of euro-swiss will be in three months' time. a lot of people have to be trading in that currency in a

currency rate is a difficult time. as we look forward i think the commentators were very correct in saying that perhaps there is a big communication error by the swiss national bank. i think the central bank was a casualty of the currency war and i think is the gcb -- the ecb leading the charge when it comes to currency wars? >> the whole point about the bluff game that drive he put out --c draghi put out. is that a focus for the ecb? if the danish peg holds, and we hold that as being the highest position. if that holds, effects traders like to squeeze the neck of anything they can get their hands on. they will have a push at the norwegian krone and the swedish

kroner as well. >> i think they said that they have a little bit of room from her new ring. the reason is that both -- room for maneuvering. the reason is the exports a lot of oil and it weekend on the back of oil prices in the last few months. they were quite clever. they were preemptive rate cuts during the course of last month. when the ecb first one negative -- went negative they came out with a bigger rate cut. i think they have been playing the game very quite well. both of the central banks have it as well as central banks at the czech will be on higher

alert because of the euro continues to weaken the ecb is in effect exporting its deflationary risk and the central banks may take further action this year. the currency is paying out in europe. this was the best -- swiss central bank has been a casualty and the danish and swedish bank will be on hiler as a result. >> -- will be on high alert as a result. >> they say not the benefactor. it is the dollar. does that continue higher and higher? dollar-yen dollar-euro, dollar-swiss? >> i think it is a little disconcerting that the market is so low. it is such a crowded trade. there is a risk here and that is

that the fed could be hiking interest rates. what if the fed doesn't? this is interesting because as we look back at the last payrolls thank you -- payrolls data, we have ever journeys. if we look at cpi in the u.s. what do we get? fairly moderate inflation. the dollar has tightened in monetary conditions. maybe u.s. corporate's are going to turn around and say we do not need it. maybe the fed is going to look at inflation data and say the dollar has been tightening doing a lot of these heavy loading in terms of tightening monetary conditions. maybe they won't hike rates until later. we don't think they are going to hike rates until the end of the year the earliest. >> looks like we've just lost jane. choose giving us the dollar -- she was giving us the dollar

outlook. james woods making the point, the rate hikes in the united states of america probably at the end of 2015. who knows? they may move out with the rest of the pack at 2016 q1. thanks very much to jane. there is one stock that soared. netflix really were on the move. the profit came in at nearly double what the analysts were asked him if -- were estimating. ♪

>> this is "on the move." netflix stock has soared. what a move. >> phenomenal news. it is about the optimism when it comes to netflix. they are talking about expanding and keeping it profitable. it is phenomenal what they are expecting. they had beaten in their terms of last quarter sales, the adding of subscribers and now are up to 57 million customers. but the rollout, manus -- 200 countries will be counted in two years and they will be materially profitable by 2017. has asked asked -- they have

accessed new zealand, australia, basically everywhere that has broadband. spain, south korea. these are the opportunities. no wonder investors like this. >> i saw you having a conversation with a ceo. there you are, chatting with the ceo of shazam. >> the chairman, actually. great man, andrew. he has come on board to tell us because of the great relationships they have managed to have chatting with guy in the past that shazam is worth $1 billion. i know. it has raised $30 million more which it did not need in terms of financing, but it is looking at high net worth individuals. they have the owner of american mobile on board. is it looking towards an initial share sell now that is valued as this? you can hold it, get music in a

shop or watching a tv program and it can recognize it. it wants to get bigger. the ipo maybe not coming anytime soon. i don't know. >> being private gives us so many choices around modifying our strategy. at the same time we believe that shazam would make an excellent public company. while we cannot comment on the timing, strengthening the balance sheet gives us more choices about where we would consider going to the public markets. >> andrew fisher there. the company already has 100 million active monthly users. 500 million people are using the shazam app. they want to grow it but it is about getting new technology. it is about as you walk down a shopping aisle, the fact that at one point you listen to a tv program having to cook great or you listen to an advertisement it will push notifications to you via beacon technology and say, did you know that?

what you heard in an advert is 2-for-1 at the moment. that is where they want to go. >> i like it to be useful but i love to spend money. quite literally. if it is a bargain, i am there. i think it is the irish and me. thank you so much. let's go back out to the snowy slopes of davos. you have a special edition of "the pulse" coming up. >> the first of three days. >> definitely the first of three days. "the pulse" in snow. we are definitely here in davos and we definitely have great guests coming up. we will be talking to the central bank governor of south africa. i suspect he will be watching carefully what happens this week with the ecb. big questions. looking forward to that conversation. >> in the next few hours we will speak to the south african

central bank governor. we will speak to a russian oligarch and two italians. one, the head of the largest oil company and the second, the second-largest italian bank. it'll give us the flavor of what europe is expecting and what ceos around the world are worried about and how to do with russia. >> the huge banking reforms yesterday. we are waiting for probably the most famous italian this week, not mr. renzi, mr. draghi. a huge story surrounding these guys. >> qe and oil prices is what everyone is talking about. maybe a little bit disconcerting that not many people have an answer to it. is the nature of our business. these guys are trying to navigate their businesses. they are trying to navigate the world economy like the rest of us are as well. >> they will tell us what they think. looking forward to the conversations. back to you. >> enjoy the next three days. get the gloves ready.

get the hats on. let's have a little bit of glamour in davos from both of you. see when a couple of days. as we head to break, let's look at the markets. we have turned. we aren't seven-year highs on day four of rising equity markets. just london is holding onto those gains at the moment. we seem to have just stopped pause in our tracks at the moments. in terms of stocks that are on the move, you have sports direct down 4.5% and the greek bank also declining. you are seeing a little bit of a turn lower. .4% on the dax. ♪

>> here i am at the world economic forum in davos switzerland. i will take you behind the scenes. >> come to davos they said. rub shoulders with billionaires and central bankers. loving it so far. security guards and freezing cold temperatures. it really isn't that glamorous.

now i'm in the world-famous conference center. supposedly this is where the magic happens and where the deals get done. there he is. governor kuroda. i cannot see pharrell williams. what i can see is lots and lots of cameras. to be fair, it is overnight and it is starting to fill up, but this is not quite my crowd. these guys are here to see andrea bocelli. i say we do something a little bit different. let's face it the real networking is not done the congress center. it is done right here at the bar. i challenge here is to find myself one of those notorious davos parties. >> [laughter] ah, jonny, having a great time aren't you?

stay with bloomberg television. our davos continues into "the pulse." guy and francine will have an interview you want to see first on bloomberg. first on bloomberg, a conversation with -- and they will be joined by carlos me ssinni. you will not want to miss another bloomberg for us with ukrainian president petro poroshenko. stephanie ruhle is an davos and moderated a davos debate with a very distinguished panel. as we head here's a picture of what is going on in the market. we were rising for four days. we seem to have hit a pause in the particular momentum. the upside has halted. we have paris down by .4%. london is the only market rising

and it is up by 3%. the booze boys are up by 2%. follow the whole thing on twitter. join me anytime of the day. ♪

>> the price of oil. opec's secretary-general joins bloomberg for his first interview in davos. >> the btv ceo weighs in. >> we've got our partners, our friends. that is why we come here. >> the most talked about man in europe is set to arrive. swiss national bank president thomas jordan faces the fourm after last --