>> sony is posting its results as the crippling cyber attack on its system. we will bring you those. >> the great finance minister goes to the eurozone to meet them men who hold the key to a new debt yield. >> global stocks rally. is this a temporary recovery? >> and the plane crashing into the river near taipei. the latest on the rescue operation. ♪

>> hello. welcome to "countdown." i'm mark barton. >> i'm anna edwards. >> i'm manus cranny. coming up, the new head of luxury of a watch business. >> 6:00 in london. let's get straight to breaking news. they are saying the net loss is forecast at 170 billion yen. the focus goes to the forecast the company is making for the full year. it has been reduced to 170 bil lion yen. things moving in the right focus

there. a lot of focus also on how the image sensors business has been performing. those are the headlines coming out of sony. give us some details. good to see you. >> hi, anna. the net loss forecast narrowing. 170 billion yen. actually beating analyst asked miss -- estimates. analysts have been pretty optimistic about sony this time around. analysts recommendations are putting the stock at -- this is just a preliminary outlook for sony. they're counting system was

disrupted at the company some studio. there is key data like smartphone tvs that people have been waiting for come especially the smartphone business. it has been pretty badly hit. they have been trained overhaul that division. it has been picked up mostly because of solid demand. two straight quarters of profit. the numbers for sony pictures not out yet as of the cyber attack. it has gone global attention. the cause related may not be that a. -- may not be that big. >> it would be interesting to see what impact that has. on light sales might be selling successful for that film. we will watch out for details on

that. you have been speaking to analysts. quite a turnaround to tell. what is behind that? >> they are pretty optimistic. they are operating profits could jump 40 times in the year starting in april. sony focuses on the popular playstation consoles and tvs and image sensors. it has a good share of the image sensor for smart phones and tablets. they are boosting investment there. that is likely to help sony and the stock. sony has been aggressively restructuring its business come especially the struggling smartphone division. sony said it would be slashing 1000 jobs. we heard from a source that has been telling us there may be 1000 more jobs in the smartphone

unit. he has been trying to focus on the company strength. playstation games. entertainment components. also cutting down on sony's reliance on consumer electronics. back to you. >> sherry ahn, thank you for the numbers out for sony. >> it was almost like a game of poker. i raise you and raise you an operating sales and profits and beat what estimates are looking for. net income is that 600 billion yen. they raise the guidance for the full year. operating income. sales. sales 27 trillion units.

that is significantly more than they had originally -- sales forecast at 27 trillion yen. at the same time toyota -- the weaker yen. what are they basing their forecast on? the dollar yen at 109. they're basing their forecast on euro yen at 139. they raise the profit forecast. did you know that the average profit they get is -- they trumped their peers in the u.s.

specifically because of the yen. steel will add dollars. cold hard steel. you have a very happy mr. toyota. >> odyssey will continue as the new austerity government faces its harshest critics. they will meet in frankfurt. the need to unlock a new bailout deal for the indebted nation. they show faith in the new leaders. they said greece would retreat. hans nichols is in berlin. hans, good morning. which meeting?

the one in frankfurt or berlin might be more important? >> good morning. in some ways, he needs the blessing from mario draghi for he can even think of his longer-term strategy for chancellor merkel. cell line coming from the chancellor's office is they are bracing for the long game. hardball from chancellor merkel. we know they will face this acute financing need. their plan is to have some sort of bridge financing to get them through. but according -- the ecb seems unlikely to grant them that. there is a cap of about 15 billion euros. they may want to go up to 25 billion. he clearly is playing for more time. >> we are going to be pitching

our ideas to the group on how greece can begin it stability and begin deliberating with partners. by the beginning of the summer by the first of june, a firm new contract between the european union, the imf, and of course greece. so the so perpetuating crisis of the last five years could be put to an end. >> yesterday afternoon we reported that privately angela merkel is racing for a longer-term game. they want to see what happens when the financing rent out at the end of the month. they are bracing for hardball. publicly on july merkel spoke

yesterday. she seems less than impressed. >> the greek government obviously still is working on its position. it is very understandable when you think about how few days this government has been office. we will wait for proposals and enter into talks with them. there will be sufficient opportunity. i don't want to count about every detail. >> it rallied markets yesterday. it was not popular in germany. there is a key tenet of on july merkel. when he was asked yesterday about responding to individual plans come he says he is not going to get in a tit-for-tat responding to every planned. that was before he called the plan half-baked. >> hans nichols our bloomberg international correspondent. you could find more on that story on bloomberg.com.

greek finance minister heads to germany. looking very relaxed in that chair. >> he is and join the conversation. let us know what you think about the conversation. talk about him during europe. >> let's take a look at some of the other stories. rescuers are at the scene of a plane crash. a trans asia airline came down in the river after losing contact after takeoff. the flight crashed at about 10:45 local time. we have an update on that breaking news story.

let me give you some of those details. 12 dead. 30 missing in the crash. >> jordin has convicted -- jordan has convicted and isis militant. >> global stock markets have rallied after crude oil entered -- speculation that investment would cut production. many say the valley is temporary. less spending won't help overnight. >> six european banks have had their ratings affected.

citing a smaller likelihood of government support for them. >> coming up on "countdown" the world's biggest entertainment company is still flying on the success of its film "frozen." the company earnings beat estimates. ♪ ♪ frozen ♪ ♪ cold, cold.

>> these are some of the bloomberg top headlines at this hour. a net last forecast at ¥170 million. that came as a tokyo-based company reported a limit nearly income of ¥89 billion. it beat estimates. the final result will be delayed until march because of the impact of last year's cyber attack on sony entertainment. lvmh with a fresh annual decline since 2009.

walt disney beat estimates. parents knocked up "frozen" gifts for their -- snapped up "frozen" gifts for their kids.bob eiger said china is on the verge of being the world's biggest movie market. >> i'm a big believer in china for disney. one of the things we have seen that is incredible in terms of its opportunity is a huge growth of movie screens in china to the point where china is the number two movie in the market in the world. if this continues come in the next five years it will be the number one movie market in the world. >> or the one person thinking about the "do you want to build a snowman?" reference given the snowy conditions in london yesterday. the greek odyssey continues.

they hope to win over the creditors who hold the key to a new debt deal. greg joined i a chief economist jimmy -- we are joined by a chief economist, jeremy cook. what would a compromise look like? >> i think both parties come into this with extreme views. you have to come in with extreme views. then everyone can walk away thinking they have won. i quite like the swap deal. they said they weren't going to do anything like that. maybe they could talk about longer-term debt. tying to a budget surplus of 1%. it makes sense. inmates greece will have to pay very little interest. -- it means greece will have to

pay very little interest. we see the european union. you guys need to be growing the way -- build up your base. if you aren't paying back your debt at a level, you'll start growing at a great and encourages people to invest in you. everyone wins. >> germany can afford to wait. greece could run out of money within months. the need is more -- angela merkel -- until the cash squeeze occurs. >> she will drag her feet. she doesn't want to be seen as cal poly to this new administration and running around after them. like a kid who is on the

hyperactive, but them away for a couple weeks and come back. right. now we are ready to deal. for all of the pump and bluster we are getting at the moment -- we're not really getting too much news. >> we're all just dreaming. if this is also to powerful wonderful remedy the banks are in tatters. is this all just puff and mirrors? >> they had to sell that kind of idea. they are starting to go back on certain things and talking about

the haircut. in the short-term, the banking sector is deftly the focus. they cannot be used as collateral for loans of the ecb. >> but the americans have been saying this for a long time. they should be doing more. >> everyone has been saying they should be doing more part from the people in the core of the eu. this is the opportunity. europe is at a bit of a crossroads at the moment. real, diet economic news. -- dire economic views. >> currency wars.

the first wave is happening. what does the second wave involve? >> we start talking about countries such as denmark. norway. sweden. we have seen the norwegians and the swedes over the course of 2014. it was the rb move 24 hours ago that really stood out to me. we know that this denver going to ozzy dollar -- we know they stand are going the aussie do llar is still going strong. we will have to cut rate. there was no real using fire. it was kind of, i don't want to be the last kid.

will receive more central banks out there going, i don't want to be the -- a tight currency moving forward. the u.s. is happy to have one at the moment, i think. we may see them join the party. >> it is interesting. he sat down. everyone there got butchered. this is peers speculated play. -- pure speculated play. >> it has really ruined my year already. i'm not missing another. >> will it break? >> that is the question. no. [laughter]

there is a difference. >> decades-old. >> i really hope it doesn't. >> percent of the on the market -- that won't happen. >> i like your approach. the zero-sum game as you call it. everyone cuts rates. just a little bit more. and then the u.s. wins. until we have a currency that really counts -- the fed sits there. and goes, you know what? we saw jack lew testify overnight and the strength of the u.s. dollar. heard from corporate it is starting to hurt earnings. we hear speeches.

other members of the fed starting to talk about the monetary conditions. >> temper the bank of england to cut rates. only joking. [laughter] it has been pushed so far out, has in it? is there a dislocation between the market is saying and the inflation report? might they start to rein in those expectations? >> i like mark carney. he likes to lean on things. he justifies not raising interest rates. first it was the unemployment rate at 7%. we started talking about wages and now we're talking about cpi dipping below zero. he is also sat there going,

consumers in the u.k., we have been try to stimulate consumption. we haven't really done very much. now the oil prices have come out of nowhere. by with a stand in the way of that? why would they sit there and go, finally. we have something that is working in our favor. we just got saved. [laughter] they will not raise rates. >> joking about monetary policy. >> i know. exciting. >> it is. jeremy, thank you. good to see you. jeremy cook. coming up reporting earnings. we look at what to watch when numbers come up. let me guess, a little bit talk of football as well. we will be back after a short break.

♪

>> you are watching "countdown." 10 to check out the trend for the foreign exchange market. this shows a clear indication. the new zealand dollar is trending higher. yen trending lower. solicit lower. the euro and decided. full of the dominant trends that shows you -- that shows you the trends. oil in a bull market.

roto says adjusting policy is needed. the bank of japan is seeking to regain being seen as his appear person in the world when it comes to easing policy review might see yen break. this is the dollar rising. yen falling. the new zealand dollar, the aussies cut rates and sucker punched. rates are unchanged. most economists say no rate change in new zealand until 2016. a period of ocr stability. dollar troubles lower. speaking of which let's nip

across the pond and into australia. you saw that 2009 lows for the aussie dollar. they cut rates. is it sustainable? the view from goldman sachs is the australian economy is 500 billion dollars worse off. udp will fall. -- gdp will fall. by the way, goldman sachs -- 44% were pulled out there about a -- polled out there about a cut. a race to the bottom. >> greece's finance minister will be meet his german

counterpart and the ecb resident later -- president later. they had the key to unlock a new bailout deal for the indented nation. -- indebted nation. markets have rallied. there is speculation that curbs in investment will result in -- they say it is temporary. taiwanese authorities say 12 people have been killed and 30 are missing after a plane crashed near taipei. a transasia airline came down in the river. the flight crashed at about 10:45 local time.

another 60 people are said to have been hurt. >> let's get more on that story. tim, thank you for joining us. what can you tell us from the scene in taipei? >> i met the crash site right now. the two meters away from the rescue workers standing quite literally on the fuselage of the aircraft. it has been more than 3.5 hours. as you just heard, more than 30 are missing. we believe they are inside the aircraft. the chance of survival is very slim. there have been some survivors. 16 were lucky to escape this crash. 12 confirmed dead. other 30 are missing. rescue divers and swimmers and

rescue boats are at the scene working on what is turning from a rescue mission to a recovery mission. >> doing know what happened? doing a wide the plane came down? >> we don't know what happened. what i can tell you is the scene of the crash is only a few kilometers from the taiwan downtown airport in the downtown area. i have been standing here at the scene. there have been a few aircrafts taking off and flying at altitudes directly above where we are. there have an unconfirmed reports the pilot had trouble gaining altitude. the plane was essentially flying on its side.

works looking at the history of this airline this is not the first crash that is happen for this airline. >> that is correct. it was six months ago we were talking about this scene at one of the taiwan islands. same airline. transasia. it didn't make it. it was off course. short of the runway when it hit houses. that was only six months ago. same aircraft. same airline. >> thank you for bringing us the latest developments.

tim culpan in taipei. >> the pay-tv company sky is set to release result. it does no longer a u.k. player. he with the story is caroline hyde -- here with the story is caroline hyde. >> exactly. colossal. it was the dominant player. you have got two thirds of the market. this is a company we know. there are were ambitions to turn into a european wide player. the second-biggest in the whole of europe. 20 million customers now under their reach. ubs think it will be the first time we get the integration of these numbers. ubs looked pretty positive what

they do. it could deliver 50% growth per year in terms of earnings. good increase earnings per share -- could increase earnings per share. will help them compete for rights. introduce new products. this is a company under transition. it is also moving into new products. thank you, bt. you have basically shoved a rocket under the industry. bp is an exclusive discussions to buy it. it must do and mobile to its tv broadband and landline operations. sky is saying, what are we going to do? they have been talking to vodafone.

able to sell mobile packages as well. >> sensuous to regulate carefully. >> -- she wants to regulate carefully. >> this is the big elephant in the shape of a football. [laughter] >> it is amazing. it is the jewel in the crown when it comes to sports. football is a most important sport for the united kingdom. therefore, people are worried that sky could lose its dominance. they have owned priced packages in the past. that means 28 games times five. now looks as though their bidding for yet more games. they're auctioning off 14 more games. but also, the competition is fierce. you have got bt coming in.

last time for the premiere rights -- area that a lot of people coming in. itv to get in on the act. look at how much we had seen. sports rights. costs are going up and up in terms of the amounts they have got to spend. the market is underestimating the risk. if they lose the rights, it will lose 50% at the highest paying subscribers. overall, they are going to lose customers if they don't pay up. >> darned if you do darned if you don't. go to bloomberg.com for seeing

some of the best stories. >> let us know what you are falling today. tell us the stories you want to hear more about. the crash in taipei is one of the trending topics on twitter today. report. on a lighter note harper lee is replete desk is releasing a book 50 years after her first and last book. >> complicated stuff. 6:40 a.m. in london. >> coming up lvmh luxury watches are trying to outsmart apple. ♪

>> welcome back. the top stories on bloomberg's our, sony has released its forecast. that came as they had income of ¥89 billion they beat estimates. final results are delayed until part. comes with the impact of the cyber attack on sony entertainment. the six european banks had ratings cut by standard and poor.

they were all affected with a credit agencies citing a smaller likelihood of government support for them under the new european legislation. taiwanese authorities say 12 people have been killed and 30 are missing after a plane crashed near taipei. a chancea- -- transasia crashed into a river after losing contact. a crashed around 10:45 local time. >> the greek odyssey continues. they hope to win over creditors who hold the keys to the new debt deal. let's bring in our next guest to the conversation. senior analyst for europe is david late. thank you for joining us -- david lee.

thank you for joining us. their batting harder than they ever did internationally. >> that was monday. >> another guest says you have to be prepared to show you are willing to go to the end of the world. what is your take? it is all about currying political favor. did they have the wind in their sales? -- sails? >> i think they have been increasingly been able to put their case across and say the previous policy wasn't working. there needs to be a shift. they were determined to play hard ball. there is a degree of momentum. the previous policy hasn't worked.

>> is germany looking at all isolated? calling on germany to help with the periphery. have they succeeded in gathering that? >> i think the trip is acutely designed to bring the periphery in. now it is germany. what we're seeing now is -- he was leaning towards good government. there is a bit of degree in which the periphery has gathered in a little bit. you are here. you are democratically elected government. you're trying to push for policy change.

it might be perfect. >> how tricky is it for them? 60% of germans are against a haircut for grace. only 20% in favor of such a move. she faces elections with the emergence of the alternative for germany party. she faces tricky circumstances at home doesn't she? grace tries to renegotiate. >> -- she tries to renegotiate. >> absolutely. the german electorate has been consistently misinformed about the chances of the successes. yeah, it is difficult for merkel. she was hoping to make a real

recovery there. this is making it to focal for her. >> i'm curious. i think -- putting an arm around him. the proverbial drop shot. what about hollande? happily to do with some leniency for greece. >> absolutely it hollande probably needs more help in the messick terms. frank -- in domestic terms frankly. [laughter] he is trying to rebuild the party. even internally. in the last couple of week's there happen science that it has come back together -- signs that it has come back together again. >> what about the rest of europe?

as mark suggested, we are focusing on the other end of the aspect growing in popularity. germany, for example all. what are the implications? >> i think this is very much true. we are seeing outside the policy is doing the unthinkable. they can go in and can get something. some deal will probably get done eventually. it won't just bang the fest on the table and walk away. that suggest it is completely achievable. maybe it isn't anymore.

yeah, huge. >> an interesting comment came earlier. he said each one has to do their part. we did our part of the job. we can demand the others do so too. if greece has given some thought to debt forgiveness or whatever what will the likes of greece ireland, spain, and so forth demand? what is the return? >> it is very politically astute. he is committed to austerity. that is a real bargain. >> it is good position for him to be in. yeah. that will be subjected to real

pressure. >> what are the relationships like? they talked about not wanting those things imposed. then they said professional things about the relationship with the ecb and imf and respect for the institutions. we remember his infamous press conference last week. >> absolutely. >> i think it is increasingly looking like the european institutions are starting to be the focus of the problems. the noises that have come out toward the imf in the last 10 days or two weeks has been very reconciliatory. >> we are always grateful for your input. your take on things. david lee.

>> the french fashion house lvmh has a new president of its watch division. he has a history of taking tiny swiss watch brand and growing them beyond recognition. he has a new challenge. taking on smart watches. >> s'il vous plait! close the door. luxury has nothing to do with is the price. >> he is one of the most important men in the watch business. >> luxury is defined by the people who where it. -- waear it. >> is talking to us at his home overlake going -- overlooking the lake geneva. >> beautiful. >> he has been building up and

reinvigorating watch company since his late 30's. now he is with a very strong swiss franc. it will hurt margins. last are growth fell pit you cannot see the stress. >> yes, it was only 3% better. but through percent more than record is another record. [laughter] >> at 65 he is stirring lvmh and uncharted territory, the smart watch. the competition couldn't be tougher. >> apple is a luxury watch. why? because they're crazy? no. they are a luxury brand. >> he is quick to admit that -- >> we cannot produce the engine that keeps the hardware.

we cannot produce it in switzerland. nobody can produce it in switzerland. >> instead he is lining up a u.s. partner. this means the swiss made label will have to be dropped along with luxury elements that lvmh watches are renowned for. >> is my watch can never be an exclusive watch any smart watch can never be special materials. gold diamonds. [laughter] >> is my watch is expected to be launched this year. bloomberg geneva. >> great story there. let's have a look at 13 things your hairstylist won't tell you.

a look at 10 terrifying things in shark attack. when billion people clicked on these stories. i'm one of them. >> fascinating stuff. >> and the presidential hopeful in the united states. london is not turning up to be good luck destination for these guys. remember mitt romney? it wasn't clear which way that was going to go. chris christie was being asked about immunizations and getting himself in trouble at home. looks like it is not set to end though. >> sky has won the exclusive rights to show the british open. the golfing event. >>yes. yes. >> live from 2017. the bbc relationship has ended. they could chill highlights

package. this is a shocker. golfing participants has been declining. it is not showing on free to air television. i wonder how much they paid? >> we break down the earnings from sky. ♪

>> sony narrows it full-year net cost loss thanks to strong christmas sales of the playstation 4. >> the greek odyssey continues as the finance minister goes to the heart of the eurozone who meet the man who hold the keys on a new debt deal. >> is it people are killed as a plane crashes into the river new year by pay. we have the latest. >> a possible bull market, but is this only a temporary recovery?

>> hello and welcome to "sunday nfl countdown." i am matthew barnaby. >> i am annie edwards. >> man us koranny. >> we are just getting numbers out from sky the television business among four other things it does. let's get to caroline hyde. she is pouring over the details of the release. >> it looks like it is coming in banging with the way analyst estimating. we have sales for six months. 4.3 billion pounds. that is up 17%. you are looking at operating profit down by 2%. earnings for interest, tax, depression and amityization did rise coming in the 72 million pounds. this is a company that is showing clear growth in terms of sales, up 17%.

on an adjusted basis, you are seeing them climb 5% overall. this is for the first half the year. these are strong financial results. if you are looking at the adjusted basis, operating up about 16%. they say they have significant outperformance in u.k. and ireland. sky dominates pay tv in the u.k. it is ramping up in europe. it has taken over sky deutsche lappeds and sky-italia. he wants it to become a juggernaut and it is the second biggest in europe. they have 204,000 new customers. they say that is our highest growth in nine years. >> wow. >> their dividend is interestingly up just a little bit, only very slightly and not as much as analysts had been hoping for.

the dividend is coming in at 12.3 p per share. analysts thought it would be 13 p. highest gross in four years and record gross in germany and austria with 214 new customers. >> interesting when you look at the section about building for the future and the products they are investing in, they talk about drama, and strengthening the drama part of their business. they talked about that before. it is not all about sports, but of course sport is a big part of the business. >> and we have premier league auctions coming up at the end of the week. they have the battle against b.p. and discovery, the american company because they want to bid for premier league rights for british euro sport. a sprinkling more games largely on a friday night. they have 14 more games to fight over, so they could be

spending far more money. in 2012, the last auction three billion pounds is how much sky paid for. that was an uptick. how much more will they have to bid to get sports rights in they have the coumplet and irish rights to the open championship. that is all about golf. but the sweet spot is soccer, the most popular sport in the united kingdom. >> they want to reduce shares the people switching off from sky and going to virgin media. i think that is possibly going to feature as well when we playbook at this. >> but they are having to market so hard. they are having to sign new people to come and be a commentator. they are having to produce more and more quality product to lure people over. they are having to offer their broadband at price reductions.

six months free to lure in new customers. what is the price they are paying in terms of marketing and the ongoing freebies. >> i have to say i resigned with them recently for a product away from me directly, and there was very little major incentive to do so. i have been a customer for 12 years, and it was like take it or leave it mate. >> they have excellent financial performance, and they keep on saying that u.k. is where it is at. but the scale in europe is where it is. we will speak to the c.f.o. mark is working his his killer questions. andrew griffin is going to be joining us in a you for minutes' time. you can find out more about that story on bloomberg.com whether about the futbol rights or golf or about their intentions in drama. it is all there. >> sony now has readjusted his

full year lost to 170 yen, better than 234 million. let's get more on the numbers in the company. let's go to straight to sherry ann in hong kong. what is the take? you have a little bit of time to read through the numbers and digest. what are people telling you? >>age itses -- sony cutting their full year net loss by 26%. so that is a big improvement from their previous target, also much better than analysts had expected. now they are saying that that comes on the back of strong demand for image sensors used by competing smartphones. they know their image censor they have a good take of that market.

they have been investing more there. so analysts are pretty positive on those numbers. now playstation 4 console, also pretty popular. that sold very well over the christmas holiday season. their tv division also doing pretty well. recently they have logged a profit the previous two quarters. this time excluding their restructuring charges, you see an operating profit of $79 million. so a turnaround for their division -- their television division, especially with the ultra high definition 4-k tv sets. they expect an operating profit of $170 million instead of a loss. but we have to remember these are preliminary numbers. we are seeing a partial earnings report because their accounting system was disrupted from last year's cyberattack at the company's fill studio. sony saying that attack will

cost them around $15 million. man us? >> talk to me about what the analysts are saying? they are predicting better numbers for sony for the fiscal year. i am looking at the currency view. sony looking at dollar/yen at 118 and toyota looking at the dollar-yen at 109. is there product improvement as well? >> analysts are saying the weak japanese yen is helping sony. that is a definite plus. now they are saying their operating profit for the next fiscal year, they are expecting it to be 40 times better now. that is a big improvement from what has been going on at sony in the past. the company is restructuring its business. it is focusing on their pop layer playstation consoles, high end 4-k television sets and image sensors. they are structuring their

smartphone business. that is where they are trying to change the dynamics there. 2,100 jobs to be cut in that division. back to you. >> sherry ahn, thank you for that round up. >> so the greek odyssey will continue today as the new anti-austerity government faces its harshest critics. yauferyaufer will mean the ministers in doctor the -- yauferyaufer will meet ministers. gikas hardouvelis said greak would retreat. he has been quoted saying there is no recovery going on in greece. >> well, that part is indisputable. the numbers back this up. there isn't a whole lot of

economic growth in greece. what is interesting about that article is he is talking about taking 1.9 billion euros from the c-webb, which he says is our -- from the e.c.b., which he says is our money. that is interesting here is that number seems to correspond to the amount of interest the e.c.b. has made on greek bonds since 2010. but the idea that the e.c.b. would actually think this is greece's money and not the e.c.b.'s money, which assumed the risk may not go down that well in frankfurt. frankfurt is where mr. hardouvelis heading today. they starting to hear a hard line from the german government. it is a big question of what greams does to finance themselves in the immediate term. they may have enough cash to get through the end of this month and then on further, but

as hardouvelis said earlier, they are clearly playing the long game. >> we are going to be stabling our ideas to the eurogroup next wednesday as to how greece can be granted sufficient stability necessary to begin deliberating with our partners. by the first of june we can have firm new contracts between the european un, the uzbekistan, the i.m.f. the european central bank and greece so that the self-perpetuating crisis of the last five years can be put to an end and greece can stop being in the headlines of the world finance press. >> mark yesterday it was reported that angela merkel and the german government is bracing for a long-term

negotiation. back to april or may when there may be a more acute crisis in greece for their funding needs. when you look at merkel publicly, what she said yesterday, she doesn't seem to be all that impressed and she is still waiting for a plan. >> the greek government obviously still is working on its position which is very understandable if you think how few days this government has been in office. we shall wait for proposals, and then we will enter into talks with this. there will be sufficient opportunities for them. i don't want to comment on every single detail that is talked about. >> back to the headlines. the fact that they won't be taking the seven billion is a clear indication they plan to exit the bail-out program. but the idea that this 1.9 billion at the e.c.b. belongs to greece, we need to get some confirmation from frankfurt on that. it could be a difficult conversation in frankfurt

today, followed by a programs more difficult one on thursday. >> thank you, mark. >> let's take a look at some of the morning's other main stories. taiwan ease authorities say 12 people have been killed and 30 are missing after a plane crashed. a trance asia a.t.r. 74 airliner came down in the river after take-off. flight g-235 out of taipei crashed after take off. >> six people are confirmed to have been killed in a train crash in new york state. a metro train struck a car during last night's rush hour in westchester county. 12 others were injured. >> the report of a convicted jihadist who islamic state wanted released.

it came after they released a video of a jordanian pilot reportedly burned alive. his plane came down in december during a mission. >> stock markets have rallied after crude oil entered a bull market soaring 24% from a six-year low reached in january. many analysts say that the rally is just temporary because less spending won't eliminate the glut overnight. >> six european banks have had their rates cut by standard and poors, credit suisam barclays hsbc and others, with a small likelihood of government support for those banks under new legislation. you can join in the conversation on twitter. tell us what is on your mind this morning. that is where you will find us.

not surprisingly the events unfolding in taipei a topic of conversation. >> coming up the world's biggest entertainment company is still flying on the success of frozen. bob iger spoke to us. we will bring you that interview right after the break. ♪

>> welcome back to "sunday nfl countdown." it is 17 minutes past 7:00 here in london. we are in a year where a dozen central banks have a policy. where is the best place to put your money in this environment? let's bring in a c.e.o. of an investment manage company. throw your thoughts into this conversation on the global rates the pull-backs that we are seeing in most place? >> it is partly because oil has come back, and that created some deflationary effect. that is good for the united states. it is a good place to to be, and i maintain that. people are getting a little bit too worried about china. now it the time to begin picking up in emerging markets. maybe europe could be attractive this year.

i think the low oil price i have heard a comment we have entered a new pick up. >> it was one of those great moments where everybody was trashing oil in january. it is fine. are -- now in a bull market. >> i read maggert stanley, and they are saying stop -- i read morgan stadge -- morgan stanley and they said stop worrying about it. >> i am not sure it is such a big buzz. we are still in the 50's. i think a bounce in the oil market at this stage is fine. if it goes anymore than that, then you are right, it doesn't give a reprieve. this is a war going on between saudi arabia and the united states. it does not want to give up market share. low oil prices is good for the

united states. it is not really good for us. >> are you of the school of thought that all did he playstation is bad or is there some that you don't mind? >> i am not sure i like any kind of deflation because it is not good. again, you have to be careful. it is a bad deflation in the sense if you are on the lower end of the income spectrum, it will not feel good. in the states, they will feel better because oil is such a big component of spending. >> we have these breaking headlights that varoufakis and greece to accept two billion. he needs time and money, doesn't he? >> he needs time and money. he only has cash to the end of february to the beginning of march, and he is playing chicken with the e.u.

we heard russia saying they would consider bailing out greece. they are not going to apply to russia but he is basically saying to the e.u. look, there are alternatives out there. be nice to us. i will say would not thing quickly about greece's position. if you lock at debt as a percentage of g.d.p., it is worse than the start of the crisis. this cutting of spending has meant the economy has shrunk massively. they do have a point. they need a way out of this, or take it. >> thank you very much for joining us this morning to discuss things all things sfwrate and greece. mark we are talking sky. >> sky just releasing the u.k. the european satellite broadcaster. operating profit up 16% for the

half year. we are joined by sky's chief operating officer andrew griffith. thank you for joining us today. >> good morning, mark. >> this is your first set of results as an enlarged group. i had a few minutes to look through them. it seems as if you have had strong customer demand in all five of your markets? >> it has been an excellent start for life as a new group. we have seen record growth in germany. in the u.k. we have seen our strongest rates of customer growth in nine years and our lowest rain of turn for a decade. we posted a revenue rate of 5%, which is good. our profits are up 16%. we start the new life as an enlarged group with really good momentum and we have a good set of plans for 2015 that we think can keep it going. >> andrew, this quarter has been notable for many reasons. one of them is you are going to start offering mobile phone services to customers through

this wholesale arrangement with o2. can you be honest with us? was the move -- b.t.'s move the catalyst for this move? >> we are pleased to reach a good deal with telefontenot came. i think the what you have seen today and in our experience with hole telecommunication customers have a demand from us. it is how you outsell customers and layer in new categories. for us mobile was always going to be the next category we would bring through the market once we get through home communications and hd. we go into that with the brand that customers say in this space is the leading brand that they would like to purchase more services from. we are in a very strong position.

we have a good heartland in tv. we continue to get better all the time in that. so if in 2016 we are able to come to market with an attractive mobile service, then we would be very keen to dough that for our customers. >> why didn't you buy it outright? why didn't you just buy ee outright rather than this wholesale arrangement? >> we are very pleased that we were able to deploy capital broadening our footprint. that has been a big trend in our business. now territorially, this is our first quarter across five major markets includesing italy and germany, where there is enormous head room to grow in tv. you just have to make choices about where you deploy capital. the deal we have arranged with telephonica gives us a good product set for our customers and a partner that has expertise in operating mobile

networks. we feel it is the right deal, and we look forward to bringing that to market. but we are not taking our eye of offer the ball in terms of growing existing tv business. across europe, we see 60 million households to go after. >> you say you have to be careful where you deploy your capital, which leads me to my next topic the premier league broadcast rights. we know how much the rights went for last time three billion, which was a 70% leap on the previous period. does sky have to win the bulk of these rights at any cost? >> well, we and our customers value the premier league that we have today. it is only true that the business is broader on many axis than it has ever been before. increasingly on screen our focus has been about investing so there is something for all

the family. last week there was the debut of fortitude, the best home ground drama we have. we are trying to get better in areas like drama and production as well as the best of the u.s. that said, the premier league is a very important set of rights for us, and we have a clear sense of the sort of outcomes that make sense for our business. >> analysts saying you could lose 15% of your highest buying subscribers if you fail to win the biggest share of the premier league package. is it the cornerstone of your empire? is it vital you win the biggest amount of rights in this auction? >> you wouldn't expect me to be overly drawn in terms of how we go into that auction process. clearly, as i said it is a very big and important right for us. it is something that is valued by customers. against that we have a clear set of plans, and we go into that auction with a really

strong sports business that is broader and attracting more rights than ever before. you saw that with the british open yesterday. >> thanks, andrew. we will speak to you again next quarter. thank you for joining us. andrew griffith c.f.o. and sky. ♪.

>> welcome back. the time for a check on the foreign exchange markets. what is the trend in the fx markets this morning? you have a fairly neutral position. you will hear people talk about unemployment numbers. the aussie dollar drifting a little higher. there is one distinct trend. that is the new zealand dollar higher. that's take you to the end.

we saw the end declining. -- let's take you to the yen. we sob again declining. that was the overall trend from yesterday into tomorrow morning. you're seeing the dollar down, the yen rising. the bank of japan will ease. that is the message. oil prices are down. you saw equity markets higher. the overall trend seems to be temporarily reversing itself from a progress kind of day. the aussie dollar, you saw the nemesis of the ozzie dollar yesterday, which was the 2009 low. the question is how sustainable is the up move in terms of the ozzie dollar. -- aussie dollar.

commodities are worth about half $1 trillion to the australian economy. this has a big issue in terms of growth in australia. the survey says he will see the probability of a marked cut coming from the reserve bank of australia. the ozzie's are on the slice and dice mode. -- aussies are on a slice and dice mode. the new zealand bank or currency markets need a period of ocr. westpac said the new zealand dollar is going to outperform their country peersiers and most economists say rates will be unchanged at three and a half percent. three big currencies moving today.

>> these are some of our top stories this morning. recent finance minister will meet his german -- greece's finance minister will meet his german counterpart later. germany and the ecb hold the keys needed to unlock the bailout deal. greek stocks rallied yesterday. global stock architect rallied after crude oil and third a bull market, soaring 24% from a six-year low reached in january. many analysts say the rally could be temporary because less spending won't eliminate an oil glut overnight. taiwanese authorities say 12 people have been killed and 30 missing after a plane crashed near taipei. the airliner came down in the river after losing contact after takeoff. the flight from taipei crashed

at about 10:30 five local time. another 16 people are said to have been hurt. these are live pictures coming from the crash site. you can find more about that story and any of the other stories we are following on at bloomberg.com. >> the company shifting its focus from personal computers to televisions and games. let's get to our guest. the trickiest quarter in their history? >> obviously we don't know what the end result is. we think they have limited the losses of $50 million and an amazing get out of jail free card with the online demand for

the interview, which could have cost a lot of money if they are going to write off the development cost. on that side they have avoided defeat. also a credit to them, a lot of what we have seen is the end result of years and years of these male restructuring. we have had lots of good results. usually they have one division which is a fantastic quarter. somewhere along the lines of think it's dropped off a low the belt and they end up missing. -- below the belt and they end up missing. >> in terms of the cyber attack, do we have the full picture? do we have full visibility on what any kind of exposure could be any liabilities surrounding that?

>> probably not, but they believe the losses would be limited to $15 million. it suggests lots of tidying up behind the scenes has been done. >> let's talk about it. the reality is the smart phone, apple keeps selling them. they are doing well in china. what do they do to reestablish themselves? how do i remotely challenge these? >> is a front facing camera enough to do it? >> there isn't a lot to choose between them. when sony bought them up in october, and you look at the

reviews and you say 50% of the reviews reckoned it is better than anything samsung how -- had at the time. they are pretty much delivering the same thing. samsung in april is going to come out with the next generation which is presumably leapfrog. as far as being at the top level, sony's problems are one of size. they are selling less than 40 million handsets a year when they need to sell 100 million to be competitive. they made money on the sales of that corridor. going forward they have the ability to put a lot of content through the phones, generate income, which will appear in the tv business or the music is nice, which is across subsidization story we have been looking for.

whilst it will be hard to say it is fantastic and why would i want to get a sony phone, what you're seeing is a mild vindication of the policy of holding the company together. >> many would be surprised sony has a financial services division. explain what this division does, why we care, what it does because it is important. >> it is hugely important. if sony didn't have the financial services business, it humbly wouldn't be here today. this kept them afloat for the last 10 or 15 years of economic hell. it generated 50 billion euro this year in profit. they set up a joint venture in the 1980's.

just a brand name that doesn't have much status in japan. they managed to sell to everybody. they have a valuable business line. >> another thing you might not associate sony with his cars. what are their intentions in this area? >> sony has always had quite a strong position. this is an out of their mill you -- milieu. they are going into the area of cameras. second, they have been used to selling into the big carmakers for stereos and navigation, so it is not totally out of the question. this is an area where panasonic has done extraordinarily well. most of the earnings come from car electronics.

sony is eyeing that as another mechanism for escaping the horrible world of consumer electronics. >> very quickly, where is the next sony great innovation? >> there are scary think they have shown like electric hair, which bristles when people walk by. your emotions can be seen by other people. you see what they have in the background. they have some weird stuff like any large organization. let's be honest. we are not that interested in coming out with fantastic new products. we talked about apple. what are we looking at? watches and tvs as the fantastic roundups. i think it would -- products. i think it would be unfair to ignore what sony has been doing in all sorts of areas.

if you look at the latest operating systems for androids and apple, they assume you are no longer going to have a 3.5 millimeter jack for your headphones. why is that? you don't need a phone so sick because the camera module is so thin -- so thick because the camera module is so thin. sony is an impressive company. >> thank you. >> join us on twitter, but we will give you breaking news. kingdom holdings. this is the holding company owned by his royal highness. he is going to cut his position in news corp. by about 1%. this is a pretty big move. the prince has holdings in twitter and aol.

the company cut its holding after we saw murdoch's fox news will not be charged over the hacking scandal yesterday. interesting move by his royal highness. >> coming up, it's bar chart time. has oil found a bottom? ♪

>> time for today's bar chart. has oil found a bottom? brent crude is in a bull market from its six-year low right here, january 13, $46.59 that day. 24% that day. 20% is the bull market of $57. that was below the high of $115.

have we seen the low for oil? is this the bottom. oil could fall as low as $40. what caused this was a plunge in drilling activity. oil companies such as shell reducing spending to more than $40 billion since november 1. just a couple things worth noting.

the biggest ever drop in brent from 146 dollars to $36 between july and december of 2008. but plunge was interrupted by a brief rally of almost 20% in late september that year. let's finish really quickly. i'm not convinced prices have hit bottom. it's too soon to say that. they are a leading indicator of production, but there is a lag of several months before we see an impact on production. has oil found a bottom? >> these are the top stories. sony has narrowed its net forecast loss. that came as the tokyo-based company predicted a net income

of ¥89 billion. final results delayed until march because of last year's cyber attack on sony entertainment. six european banks have had their ratings cut. credit suisse, rbs, standard were all unaffected with the ratings agency citing government support under new legislation. taiwanese authorities say 12 people have been killed and 30 missing after a plane crash near taipei. the airliner came down in the river after losing contact after takeoff. the flight crashed at about 10:45 local time. another 16 people are said to have been hurt. >> we have had six major banks have their ratings cut by standard & poor's. they were all in theirre.

the likelihood of government support under new european legislation looks like a thing of the past. john joins us to discuss this. how big a deal is this? in some ways this is theater, because there is legislation in place in europe, which says creditors are going to be hit first rather than taxpayers. this is not that shocking, is it? >> it's not shocking at all. the agency said in november they were going to look at these institutions. they were going to assess them for a downgrade. you have on one hand you have the cuts in certain circumstances. they are holding companies at

large. those are banks in the u.k., which are structured in a certain way. they have holding companies such as credit suisse. you are structurally subordinated, which means you are in line for the chop first before the bondholders of the operating companies. for bond investors, this has implications. you pay more for the bond of an operating company than a holding company. we have seen with barclays and rbs a couple of aunts they have got out of their holding companies -- couple of bonds they got for their holding companies are higher. >> this has been building over months. >> it is part of the process of

restructure. a regulatory restructuring. it's noticeable that operating companies were put under review in certain countries. that's to do with the legislation because those countries have introduced legislation early, saying, sorry. you are for the chop. >> especially if you are a taxpayer. you were smiling. finally the banks are going to be bailed out. >> you are smiling and you aren't. it's your pension fund that is going to take the hit. >> explain to us how that is. bonds that are issued by the nonoperating side of these banks. >> pension funds, insurers, all of those institutions on bonds

insured by banks. -- own bonds insured by banks. senior bonds known as tier two bonds are regularly touched in a crisis. they are gone. we have seen it with the portuguese. the aim of the regulators has been the aim since the crisis to get investors to force banks to behave sensibly, because the regulators notice in aggregate investors have probably a better idea of what is going to go right than what is going to go wrong. the market signals some banks were stronger than others. they are trying to use it. one way is to ensure those

investors are in line for a haircut. >> thank you for helping us through that. >> 7:52 here in london. let's bring you up to speed on one of the top stories we are following. a trans asia plane has crashed. tim is on the scene. we are looking for live pictures coming through from the crash scene. what can you tell us now? >> it has been five hours since the plane crashed. it crashed about three or four hours from where it took off. it couldn't get enough altitude. it plunged into the river.

it actually went into the river. as for the rescue of remaining passengers they are recovering. >> we are having a few troubles with your line but we will try to carry on. this is in the first crash this airline has to report. it was within the last year, wasn't it? >> the same airline, trans asia flying. also a domestic flight. [indiscernible]

>> thank you very much. we will leave you right there. thank you for giving us the view on the ground. on the move is next. in terms of what is dominating market sentiment, the big company news. >> they had a big first half. they are now following up their italian and german operations. he pushed andrew griffith on friday. he wasn't giving anything away. it's so important, regardless of what he says. it's the cornerstone of a whole empire. >> for me what is going to build momentum is how well it is

selling. a 5.6% holding in news corp.. it is interesting. >> on the move is up next. ♪

>> good morning, and welcome. i am jonathan ferro in the city of london. let's get straight to your morning brief. oil spikes. the crude market enters a bull market. this is only after plunging over 50% in just over six months. the greek finance minister heads to germany to meet with european central bank president mario draghi. the big question in frankfurt will the ecb turn up funding for great banks. standard & poor's cuts the

credit rating of six european banks including barclays and rbs on the prospect the respective governments are less likely to provide financial aid in a crisis. i am looking at futures markets pointing a little bit lower. once again greases the word. manus cranny looking for greece on to her the market open. >> you had a great deal of relief rally. it is a delicate balance between rising and falling markets this morning. he has been to london, rome paris. he has had a snapshot of himself, a formidable negotiator . will the ecb allow him the financial capacity to stay alive, to keep this greek roadshow going? that is the critical issue. to a certain