e is said to the close to requesting an extension of its loan agreement as talks continue. greek banks face accelerating deposit flight. futures are a little bit higher. euro stoxx futures higher. dax futures up by 50 points. manus cranny is at the touchscreen with the open. >> it is indeed. go to bloomberg.com and get a real good flavor of what is going on. equities have got a nice relief. the stoxx 600 has had the best january since 1989. 7.3% in january. we've delivered almost 10.3% in terms of equity returns since the start of the year. all predicated on the view that the firewalls of this map are so robust that anything that happens in greece is not likely

to permeate or contaminate anything around. you have the conversation with george osborne. i sent him a tweet saying fair point, is there a plan b? are you pushing greece to the liar is the most -- are you sure pushing greece to the liar is the most sensible option? how much slack is there in the u.k. economy? where does mark carney want to take you next in the game of guidance? that is the question. let's look at the names that are moving markets. peugeot and carlsberg. peugeot up 3.37%. why so much? the headline numbers missed. delivering #ackley than they have originally. that is the driving factor behind the peugeot story. they delivered a profit for the first time in three years.

carlsberg, again, what you've got here is, no news is good news. credit agricole we haven't found who the new ceo is. in the fourth quarter, 243 million euros. that is up 27 million euros year on year. why am i talking about kara stark? -- about carlsberg? carlsberg well mr. anderson is stepping down. he delivered a flat return. russia will grow. prices will rise. has been cut by 30%. those are your three individual names. stephen major has had the conversation this morning. he's calling the bottom in the near term around 1.6%.

target for hbc, 2.3%. that would suggest that you might get a slightly higher dollar. jonathan: great work, manus cranny. that is a man who has nailed the treasury market. equities higher here in london and across europe. double market charges on. the ftse 100 closed yesterday at a 1999 high. on wall street, the s&p 500 that an all-time high. those headlines in other stories usually prompt discussions on bubbles and debates on whether we will get a sizable correction. then you've got the bloomberg school. snapchat said to be raising money that would value the company at $19 billion. it is a disappearing photo and video message app. if that isn't enough to make your head spin, that valuation would make the company worth as

much as tulloqw morrisons, and royal mail combined. let's get out the caroline hyde. tech valuations, that is the story. they just get bigger and bigger. >> when you compare it to 2013 when facebook was reported to have approached snapchat for $3 billion, last year it was ranked at $10 billion. now, a valuation of $19 billion. that is bigger than fiat, bigger than publicis. this company is on a tear in terms of valuation as it tries to raise a bit more money. they are looking for half $1 billion to continue to grow. this now ranks it the third biggest venture capital backed firm out there at the moment. it is only behind uber the car booking up and a chinese smartphone maker. the third biggest vc-backed

company out there. what is pumping up this valuation? look at how many people are using this. one in three iphone owners in the u.s. have this app. they are sending 700 million of these disappearing photos and videos are day, jon. now, we are starting to see how the company visualizes monetizing snapchat. they are showing adverts. disappearing adverts are starting to be seen that you can opt out of. it is also about content. they have this face that you can get called discover. you can watch content from yahoo!, cnn, espn, comedy channel, but they also have their own bespoke channel. it is called the snap channel. they are getting exclusive content. they have "literally can't even."

it is a comedy. they have the daughters of steven spielberg. white media is releasing some of their inside scoops exclusively to snapchat. and madonna to have her video exclusively on snapchat. this is where the money starts to come in. this is why it is potentially worth a whopping $19 billion. jonathan: let's get the investor take on that. we are joined by james bevan. james, i remember you coming in the morning facebook paid $22 billion for whatsapp. we talked about how crazy this all sounds. would you invest in something like this? guest: i would make two observations. the price tag has been knocked up from a relatively small

capital raise. of few people are able to participate early in the party. they believe they will make a lot of money on such a small sum. the other big issue is trying to understand how these people are going to monetize their brand value, how they create profits for shareholders. many of us were very surprised how successful companies like facebook were. they can drive cash profits from a consumer benefit. jonathan: i made a comparison before we started talking between the valuation of $19 billion, and i could buy tullow oil, morrisons, royal mail, all three companies. if i offered you snapchat, which would you choose? guest: i'm interested in free cash flow yields rather than hope value. i like the three old players. there is a real possibility that

this has a flowing wind. it has a lot of sentiment in its favor. in the near term, there is more momentum. the companies you mentioned all have significant problems. they could do what bt did. bt turned itself around. it could happen. we could also see real benefits coming through from the oil sector. tullow could do well. u.k. retail could do well. morrison has been a significant underperformer. i don't think those problems are going to clear in the next 12 months. if you said five years, i would go for the three. jonathan: let's talk about valuations. you see the nasdaq back at those 2000 highs, 1999 highs on the ftse, all-time highs on the s&p 500.

it wasn't so long ago that janet yellen was saying, some of these look stretched. where are we now? guest: dividend yields still markedly in excess of government bond yields. as long as we do not get a selloff in government bonds, the valuations make a lot of sense for investors. you might say, that's just all relative. to me, cash raising bond yields remain tethered by central-bank action. i think the deflation story will continue to dominate in the near term. we might even seek you all -- see qe from the u.s. side. maybe the fed might tighten ever so slightly in june. bank of england, i think it will hold off longer than expected. we know that the central bankers have a lot more to do to get the economies moving again. jonathan: final question, is there a thread running through

these stories? when i look at the low bond yields, the potential for spillover into credit, you could have a negative yield you could see a company go to market and issue bonds with a negative yield is there a spillover into valuation? guest: there is. what we are seeing is the absence of global demand relative to supply. people say, if you can deliver reasonable prospects and average profit growth in a world where there is excess supply, prepare to pay up. jonathan: so much to discuss. james bevan stays with us. let's check in on certain top stories of the moment. carlsberg missed estimates this morning. the company are ceo will step down. much more on that story. more on vivendi also. the company receiving a 3.9 billion euro offer. the stock climbing as well.

vivendi up 1.5%. credit out a call -- credit agricole beating estimates. the stock of 3.8%. up next, we are live in brussels for the latest on the greece story. the company -- country reportedly asking for an extension. details after the break. does that sound like extend and pretend? ♪

jonathan: welcome back. this is bloomberg tv. stocks are higher this morning. kicking the can down the road, is that where we are going? greece's government reportedly set to ask for an extension of it loan agreement. let's get straight to brussels where hans nichols has been very busy. what is the likelihood of this request getting approved, and secondly, is this request being followed through on? >> we will know both of those answers in a few hours when we actually see what is in the proposal. if this is just a proposal that is a reheated proposal, then we could have an issue here. the key issue is whether or not there is a request for the actual bailout program, and whether or not they are going to complete that program. as news of this pending request was breaking, mr. schaeuble

spoke to a german broadcaster and here is what he said. he said, it is not about an extension of credit program. it is about whether this program is fulfilled. yes or no. that is a strong indication, at least mr. schaeuble wants to see this current program fulfilled and he doesn't want to negotiate a longer conversation about a bailout extension or loan extension. mr. tsipras in parliament, everything he said contravenes the current ball -- bailout program. we will have to see when we get the actual proposal. jonathan: as if the confusion isn't enough, there's also reports in the great press that cash reserves could be depleted as early as next week. we don't really know what the firm headline is and when they will run out of money. >> well, if the greek state does run out of money, there may be a few tweaks they can do to get through the month.

the larger issue is what they do if their banks are cut off from the ecb. there's going to be a meeting in frankfurt and they are going to be discussing whether to raise or potentially make it harder or easier for greece to access liquidity lines. two weeks ago, wednesday night we got that announcement that they would no longer be accepting greek debt as collateral. it was a way to force greece back to the negotiating table. we will see what we get tonight. frankfurt could have more news for us than brussels. jonathan: hans nichols, thank you very much. let's bring back james bevan. james the plan you just overheard that sounds like a can kicking. is that the most we can expect? guest: i think that we are seeing brinksmanship and we will have to muddle through. i think that we do see a six-month extension and that will become the basis for a behind closed doors

conversation. the great prime minister really understands this. he is not a hothead. therefore, he's going to be taken extremely seriously. you have spain, portugal italy all in similar situations. but the hard reality is that 70% of greeks will remain part of the eu. if he is able to cure some benefits of the greek economy he will have done a good job. jonathan: let's say he gets to six months. what kind of concessions is greece likely to get when that takes us closer to six months in spain? they will be saying, you know what, we want some of the same? guest: it cannot be a one-way ticket. greece will have to make material progress in terms of improving efficiency deregulating, driving

efficiency. where all these problems come from is the fact that wages in germany fell. those in greece went up. we had a 25% competitiveness gap open up. that needs to be reversed. greece needs to be an economy that can compete. unless we get a single political -- if you have a single currency, all the economies have to be able to play at the same level. jonathan: the ecb's role in all this, they are not going to turn off funding are they? guest: everything says qe is going to work. there are so many differences between ecb qe and what the federal reserve or bank of japan has done. there is a possibility that the money that is created by the ecb qe goes to pumping up the dollar, placing more global tension and bad news for europe. jonathan: why that news for

europe? guest: because the u.s. is not going to permit a hike in the value of the dollar on a one-way ticket. if it does, the u.s. economy will falter. one engine of growth that europe has relied on will be extinguished. jonathan: james bevan is going to stay with us. let's check on shares of carlsberg this morning. the brewer missed estimates this morning. more on that company and on a key metric. we are following through -- following brewflation. ♪

jonathan: welcome back. this is "on the move." i'm jonathan ferro live from london. carlsberg the rumor, has named a new ceo that will take over in june. he will replace rasmus and after he retired. the brewer also mr. earnings this morning. volumes declined this year. they cite russia and ukraine as a major headwind. the stock is up 1.12%. we are going to bring back james bevan for some final thoughts. carlsberg, do you like the company? guest: i thought yesterday there were way too many headwinds areas -- headwinds. the dividend was ahead of expectations. they are doing a better job in

asia than i expected. we all knew russia was going to be difficult. russia has been trying to persuade people not to drink so much. i thought they were posting positive results in a company that is facing significant headwinds. jonathan: are you enthusiastic about this sector? guest: if you said, and i keen on companies and emerging economies, absolutely. there is opportunity to do really well. if you stretch the definition further, i think diageo is something one should have in a portfolio that is focused on solid growth credentials. jonathan: one of the tailwinds has been the talk of consolidation. is that something you are looking for more of? guest: there are two sorts of consolidations that are effective. one would be about cost-cutting. self-help through cost-cutting is a strategy. the other is where you are trying to buy decent quality

brands where you think you can add value. in terms of long-term growth, that is much more important. jonathan: i want to look at brewflation u.k. beer inflation. beer prices falling. the glass half-full. as you look at the u.k., and we expect labor market data around 9:30, prices are falling. fine. is that largely a good thing? guest: the deflation we are seeing is, i think, good inflation. this is going to be part of what people spend. the deflation we are seeing, i think, encourages people. jonathan: what does this mean for the bank of england? at 9:30, we get the minutes. we already have the bank of england inflation report. can they really look through

inflation? we have a discussion about how this is good, but can you see the bank of england hiking rates? guest: when one thinks about the inflation report, it was clear that there was a reasonable chance inflation could be above or below the 2% target. i think he's going to have a " steady as she goes" strategy. there appears to be more credit availability. that is critical to getting the economy moving again. jonathan: wage growth, where is it? unemployment at 5.8%. we keep saying the wage growth is coming. guest: it is going to clearly be less than 2%. where is the wage growth coming? it seems to me that it is not coming in the area where people spend more money at the low end.

that's not necessarily good for the economy. jonathan: as an investor, you see the world and you see all these central banks easing. you don't see that for the federal reserve and in the u.k. what makes those central banks different? guest: first off, the u.s. went very early, allowed the housing market to crash, addressed those challenges, and created a significant fiscal stimulus. that was very supportive. the u.k. went very early to devalue the pound and allow export growth to come through. the bank of japan was really very slow. we do not have the third leg of abenomics. we do not have corporate reform. real recovery of japan does require that to be in place. jonathan: james and i waiting patiently. james bevan, thank you very much for joining me this morning. kicking the can down the road. james says no. other people say yes.

greece reportedly asking for a six-month extension of its loan agreement. we will see how the greek market takes that. stocks in london trading a little bit higher. ♪

jonathan: welcome back. this is "on the move." we are 30 minutes into the trading day in europe. the ftse 100 up 0.2%. the dax climbing higher. the ftse 100 is just 18 points short of an all-time high. right now, we sit at the highest level since 1999 and we come off the back of the u.s. close that finished with the s&p 500 through 2100 points. all-time highs in the u.s. will we see that today in london? the asc in athens opening up. a lot of people expecting a nice left the greek equities.

greece may well make a request for a loan extension. let's get our top stories with caroline hyde. >> the one-day we are starting to see a downward trend in oil prices, we've got some enthusiasm being shown for the oil stocks today. technip -- technip trading up almost 5%. this is a french oil engineer. they are saying revenue profit, growth in 2015. that is despite the huge drop-off in oil prices over the past six months or so. they say, overall, their 21 billion euro backlog is giving them clear guidance. they say revenue profit is going higher. people liking the news from another company, eni.

reported a 64% decline in net income, but analysts say the reason for that is a higher tax rate. some of their assets are losing value. but actually, the numbers show some positivity here. they are saying there is a beat in overall profitability because congo and angola startups are looking good. eni, despite the fact that you may not think it looks good, overall, it is on the positive side. i will bring you the swedish a little later. here, trading down 2%. even though sales rose 11% earnings per share rose 3%, it was all below analyst estimates for this swedish stock. they say faster growth of value priced goods they are saying the absence of price increases in 2014, means it has been a

problematic time for them. jonathan: great work, caroline. here's a company to watch this morning. a geneva prosecutor is searching hsbc offices. hsbc under investigation. a geneva prosecutor opened a money-laundering probe. more of those details when we have it. for now, equity markets in greece just opening upt area -- opening up. the ease just a little higher. equities higher in greece up by 0.4%. you do see yields on the three-year note down by 93 basis points. still, the yield, 17.62%. there is a little tension in greece. the greeks might request a six-month extension of their loan agreement. prime minister alexis tsipras intends to make the requested a.

for the latest from greece, let's welcome the head of european rates and economics research. great to have you with us. guest: good morning. jonathan: it feels like spend and pretend, the kind of thing the greeks said they wouldn't do. what is that about? guest: i think we have to recognize, we have to look underneath. if they ask just for extension of the loan facilities, but not an extension for the counter arguments that come with it what good is that? we have been here before. there was a lot of back and forth. we have to see what the ultimate result of this can be. jonathan: let's start talking about the actual debt. debt to gdp is one number. they don't borrow at those figures. the real debt servicing costs they are pretty minimal. guest: i think you are raising a

crucial point here. the point we have been making over the last couple weeks. the debt-gdp number is almost irrelevant here because as you said, the borrowing costs are almost as low as germany's. they can run around with that debt for quite a while. we have to look at what the government really wants. they want to spend more money. if they want to spend more money, the money has to come from somewhere. they have to get it either from european partners or make some real budget savings. jonathan: we've been spending months talking about greece's debt servicing costs distracted by the bond market. doesn't this just come down to the story that we've been debating over the last 3-4 years, austerity? greeks what the rest of the euro to admit that it hasn't worked and it has caused a humanitarian crisis.

are they going to admit to that? jonathan: -- guest: let's leave germany aside for a moment. if you look at what other governments around europe have been saying, if you look at the irish, the portuguese, the spanish, they look at this from a different angle. they are seeing a turnaround. it is very unlikely to me that all of a sudden they are making a u-turn on this. back to your question, is europe going to make a huge about-face and say this was all wrong, i doubt it. jonathan: there is so much noise. help me strip some of it out and look at the bond market. look at yields in spain and look at yields in italy. this is shaking up valuation to appoint. has this created some opportunity? a deal gets done, yes it is

going to create volatility, but it is opening opportunity. guest: let's call a spade a spade here. what the ecb in particular tried to do here is reduce interest rates, particularly on a real level substantially, to fix the economy and create loan growth and make the debt for everyone terrible. we were talking about the interest-bearing costs for the greek debt. that counts for everyone. that's what they are trying to do. that is what i see here for a long period of time. everyone within europe has to live with that. some people will be leaving the euro area and looking for yields somewhere else. definitely there are opportunities. jonathan: you look at italy spain, do you concentrate on the debt servicing costs or do you concentrate on the politics? two very different stories in those countries right now. guest: we have to focus on both.

let me make one broader point here. everyone usually says, the exposure is more or less gone. the financial sector doesn't have as much exposure to greece. the exposure is not gone. it has been transformed from tied atop public sector. the public sector is concerned and the politics matter. in the case of spain, if we look at other bailout countries its politics all of a sudden turns around and says, we don't want to do this anymore. it becomes a real issue. as you mention, and spain we are much further along than in italy. jonathan: just a final question so much debt right now. the ecb, the imf, the european commission the trigger point is not going to come from the debt markets. let's not read too much into that. does the trigger point come from a bank run?

is that something you think could play out imminently? guest: that is the issue for greece. we don't have the official stats yet. anecdotal evidence tells us that over the course of february, there has been deposit flight taking place in greece. as we all know, the ecb currently has the greek banks on life support effectively. if the banks are deemed to be insolvent and a deposit run triggers that, that jeopardizes this whole funding vehicle. i don't say it is a light issue for the euro area, but certainly for greece. jonathan: fascinating discussion. thank you very much. as we head to the break, let's check in on markets for you. equities opening a little higher. bonds up, yields down. we are lower by almost 100 basis points on the three-year note. a stronger day for greece.

coming up, changes at the top at carlsberg. the brewer names a new chief executive as the company says currency devaluation in russia will put pressure on the company this year. ♪

jonathan: welcome back. i'm jonathan ferro live from london. time to get the top stories at bloomberg. rebels in eastern ukraine say they have taken over a strategic rail hub. they claim that troops

surrendered after fighting that has undermined this weekend part cease-fire. the military has denied that soldiers surrendered and russian president vladimir putin said he is optimistic. >> i am rather an optimist than eight has a missed. i want to stress one more time it is more or less quiet along the contact line between the ukrainian army and separatists. it is necessary to solve the problem in the vaults of -- debalstseve. jonathan: at warren buffett's berkshire hathaway, they have exited an investment in a some mobile as the price of oil has halved since june. exxon mobil stock has fallen since then. a regulatory filing showed that buffett sold the holding in the

fourth quarter. snapchat is said to be seeking a new round of funding that could value the company as high as $19 billion area and -- $19 billion. it would value the disappearing photo and video app as more than fiat, ryanair, and burberry. yes, really. another company that snapchat could be worth more than is carlsberg. carlsberg reported earnings today that showed slowing sales as well as the departure of their ceo. caroline, the top line of the earnings is the big management shakeup. >> after seven years at the helm rasmussen is stepping aside. he will be handing over the reins in june. the man who is going to be doing it is cees 't hart. he is the first non-dane to ever run carlsberg. this is the first non-dande to

take the helm. he was the chief executive of a dairy company since 2008. it is tough times he is embarking on. fourth-quarter sales that we got today, worse than expected, down 3%. full-year profit was down some 5%. it is all about russia. this is the biggest brewer in russia, the fourth biggest in the world. they own baltika and they are saying, the weakening ruble, the political turmoil in russia, and the fact that the government has been trying to crack down on drinking in russia, they've been trying to curb that, all of this has just been dampening the market. they say, no change soon, there is going to be significant pressure on overall performance. they say the gdp decline in the company and the foreign currency devaluation is going to hurt russia and ukraine.

therefore, we see the stock turning to the negative after the mild euphoria we saw with the management shakeup announced. jonathan: caroline, a very busy morning for caroline hyde. thank you very much. billionaire patrick draw he offered 3.9 billion euros to buy vivendi's stake in a carrier he created by merging france's largest cable company with the second-biggest wireless provider. enough of may. man well joining us from bloomberg intelligence. the consolidation, do you expect this to continue? guest: it is just the beginning. in france, we've seen a bunch of takeovers mergers in the u.k. following countries like germany, spain, and now france. this is expected to some extent. it is the timing that surprises

everybody. also, the price of the offer being a little below market almost 20%. in terms of the strategy, it makes perfect sense for altice to retain more control of the asset. jonathan: can we read much into the timing? is there a story there? guest: i think everybody was focusing on what is happening with royal telecom, but we need to think that for alticem it made a lot of sense, to own this stake in vivendi. everybody was trying to identify what the next big move would be in france. altice being so acquisitive there is many things on the table right now for them. jonathan: what is out there for them? guest: as we reported earlier this week, we have bouygues telecom.

that at some point will happen down the road. we are hearing sooner rather than later. then, it is not just france. kpn may look at selling assets as well. jonathan: manuel, thank you very much. bloomberg's european deals reporter joining us. let's look at a couple french companies on the move. peugeot reported its first profit in three years. lafarge is up. the french cement maker says profit will rise as much as 18% this year, giving it a solid footing. stay tuned for the morning. we will bring you the interview with the ceo of lafarge. ♪

jonathan: welcome back. let's talk about lafarge. they see a favorable outlook. caroline connan spoke exclusively with the company's ceo and started by asking him about the merger with holcim. >> 2015 will be an exceptional year for lafarge. that should happen in the first half of 2015. we are very close now. of course, we have succeeded to divest already as a project a

major part of the divestments needed to fulfill the requirements of the regulatory authorities. so we have not completely finished that. we are in the last steps of this. we have always said there are additional divestments. what we have done this year is the biggest part by far. jonathan: caroline connan joins us now from paris. you sat down with the ceo exclusively. what else did you learn? >> of course, this will dominate this year for the group. remember, the reasons behind this merger in the first place was the slowing construction in southern europe and the uncertainty about construction

in emerging markets. so i asked bruno also what kind of outlook he expected for 2015 whether markets will be tough which markets will do better and the uncertainties about europe. >> we see some recovery in europe but this recovery is slow. it may be pushed by the reason measures of the european central bank maybe, but we are quite careful and cautious. 2% to 5% is a reasonable approach of growth. of course, not all markets will generate as much growth. we are preparing for a slowdown in brazil. we do not expect brazil to be extraordinarily high growth next year.

but there are countries which will deliver a lot. south africa is doing very well. egypt for us will be a turnaround year because we are able to produce with new fuels and the market is demanding. other markets will continue to do well. >> that was the ceo of lafarge who expects cement demand to be between 2% and 5% in 2015. despite uncertainties in europe and emerging markets, they expect earnings to be between three 3 billion euros and 3.2 billion euros. they should also benefit from the strong dollar versus the euro. jonathan: caroline connan, thank you very much. you will hear much more of that interview in "the pulse." we will get a read on the u.k. labor market. the unemployment rate set to remain at 5.9%.

guy, a lot to talk about this morning. guy: the equity market is the biggest array for me today. if we get near some of these highs, we are about to break through some key levels in europe. jonathan: 20 points off an all-time high in the ftse. guy: the.com boom was the last time we were hearing this. that is the story. greece obviously the standout. we will continue that conversation. we will talk about what is happening. i still don't understand the difference between a loan extension and an extension of the bailout. jonathan: the wording is very important. guy: for both sides. it will be interesting to see whether this plan flies when it didn't earlier on. jonathan: i think about nostalgia as well. going back to the boom, the tech bubble, the nasdaq near that 2000 high, and evaluation of $19

billion for a video and messaging app. guy: we have been here before. but whether or not the multiples work i think it is about the earnings story. if you can make the earnings story stack up, you can make these valuations stack up as well. there are some interesting levels and it is reminiscent of a different time. we are also talking to a ceo to get his take on what is happening with the european economy. interesting show. jonathan: looking forward to that. guy and francine with "the pulse" in four minutes time. check out the ftse 100. we are 20 points from an all-time high. up 0.2%. the dax climbing higher by 57 points. the s&p 500 closed yesterday at an all-time high. some of these levels are pretty impressive. you want to consider the conversation, you can follow me

on twitter. good luck for the rest of your day.

>> borrowing time. greece looks for a loan extension. >> the ecb meets in frankfurt. >> a luxury carmaker confirms it will build an suv. do not call it that. >> good morning. welcome. you are watching the polls. >>