bank had interest rates to 30%. rbs reports to be set to eliminate as many as 14,000 investment jobs. standard chartered are reports earnings in just 15 minutes time. a morning full of european data. pmi is from spain, france, italy, and germany. stocks 50 futures a little firmer. dax futures up 20 nine points. a sizable selloff. >> i have decided to start with the bond market. pacific lee the portuguese -- specifically the portuguese bond market. this bond market is in portugal. that will provide an opportunity for people to trade. that's according to the survey. they say portugal is probably

the best bet. when the european central bank enters this market, there are clean markets and dirty markets. the bond market is perhaps the dirtiest of the mall. once the ecb steps in they will all have been there. -- the dirtiest of them all. contorting the real price of money. that is what we are about to enter. record lows around the bond markets. if you want to know instead of buying out right what you would do is look to trade the spread. we are back to differential trading between were portugal is now and where it could be relative to the core counterparts. that is why they should end up

with a variety of asset classes. one of them is european equities. european equities still on the valuation basis have more legroom than the united states of america. european equities are rising. no sign in the top fluttering movements. delivering their numbers. you will talk about the r.b.i. and the impact it has had. fairly flat and muted. i think there are 20 institutions that have cut or used. -- eased. they have decided to alter the price of money. the r.b.i., if i put up the

ruby, that would be progress. a number of them are saying it's good for bonds and the net trade is he will see more rate cuts to come. 6% at the end of the year. >> the ftse 100 a little bit higher. the reserve bank of india cutting rates. there have been reports of an explosion in a mine in eastern ukraine with at least 40 people missing. can you give us the latest of what is happening on the ground? >> i asked -- the mining accident happened on a regular basis.

part of it is they are really old mines. mines are the only source of work. they are keeping them open. at another mind, we give you a sense of the difficult situation. the mines have nowhere to sell their coal. the railroads have been blown up. because of the partitioning of ukraine. they can't really sell it. they are not paying the workers. the average minor gets about $90 a month. they haven't been paid since december. they only got 40% of their paycheck. they lost electricity for a short while. they have very poor ventilation. >> we will bring you more as the

show progresses. we will be talking about financing. another easing action from the central bank this year. the reserve bank cut rates. a surprise move. what is behind another rate cut for the indian central bank? >> it has to be prompted by the budget we just had four days ago. the rate cuts coming. it is highlighting the fact the economy expects to grow 8%.

still week. all of that the lagging by three to six month across-the-board. it was a big surprise for the indian markets. they did not expect rate cuts. besler being pared down for the cuts ahead. back to you. -- bets are being paired down for the cubs ahead. >> the indian equity benchmark climbed to an all-time high. the r.b.i. is one of 17 central banks. central banks remained the only game in town. we need to take a birds eye view.

i am joined by the ceo of pimco. great to have you with us. we talked about the verge of monetary policy. it has been a one-way ticket. you weren't expecting this were you? >> i wasn't expecting over 20 rate cuts. i think if you want to understand the driver, there are two things. one is the ecb is willing to do a large qe driving yields further into negative territory. the second issue is the u.s. is willing to tolerate depressurization. you will end up trying to push your currency lower, and that is what we are seeing. >> you and i are going to talk about bob markets a little later. he is looking out at the world. we see assumptions.

the third is tolerating a stronger dollar and eloquent liquidity. what are the most crucial ones? >> these are dictating a lot of the market positioning. most people are on the same side in terms of what they believe will occur over time, which is long equities, long euro versus the u.s. there are a series of trades, and they assume these four things. the most important thing is the illusion of liquidating, that people believe they will be able to reposition. the paradigm is fragile. we believe it will have liquidity if we needed. the key issue is response.

will we get the response that will validate a lot of these? >> you and i have talked about approaching a junction. when do we get close to the tipping point and turn left or right? >> we are getting close. if we sat here eight weeks ago and i would have talked to three separate banks that made their reputation on being predictable and being stable, we are talking about singapore and denmark, it will shock you. i would have said the probability is pretty low. it tells you it's not just the emerging markets having issues dealing with this world where the central banks are distorting the allocation of capital. it's some of the smaller economies. we get closer. it's hard to specify the timing

but we are getting closer. >> we go back to the 15th and the huge swing in treasury yields. it happened. people seem to have forgotten about it. how fragile are the bond markets? >> we move quickly from 1.7% to over 2%. all that changed is a perception about the future. you get very large movements. we have shrunk the risk opacity of the year. when they reposition we find out there is very little risk appetite in the system. therefore, you get large moves. keep an eye on how you scale them because you have an opportunity to get into them when we have these shocks, which you will have.

>> these are coming off the back of her a subtle changes to central-bank policy. we put all our faith -- faith -- fates in policy. >> it's undeniable they have strengthened the tools. that's a plus. a lot of the risk has migrated out of the sector they know well. they would be the first to admit they are less comfortable when it comes to nonbanks than banks. >> of the world hammers their own currency, the pressure valve is the u.s. dollar. do they continue to tolerate that? >> so far yes. there is little talk of a currency war. there is no sign of protectionism.

the u.s. is so linked with the rest of the world on the consumption side and production side that you don't get a clear political lobby we had in the past. having the u.s. continue to tolerate and appreciate -- appreciation of its currency is key. there is no other shock absorber. >> up next is the moment you want to talk about. we tackle the bizarre bond market here in europe. yields are negative on the third of all sovereign debt. that chart is not german debt in negative territory. that is austria. the two year yield negative. we are going to talk about european bond markets after the break. we are back in two.

>> 15 minutes into the open in london. the ftse 100 is up five points. the dax a little bit of a bounce back today. we are up to four tenths of 1%. a big week for u.k. bank earnings. standard chartered breaking therefore your earnings. and edwards with a little more. what are the headlines? >> operating income coming in at $18.234 billion. that's down 2% from the previous period. it is just below analyst estimates of 5.5 8 billion.

the pretax profit number four standard charger is missed estimates of five $.19 billion. we have talked a lot about this going into these numbers. expectations have been reined in a little bit. he was just replaced last week after overseeing two years of profit declines amidst the slowing in asian economies. the expectation was this was some kind of turnaround. they say they saw intense pressure on margins and volumes. they are going to be looking forward to the new management team. the ceo doesn't start until may or june. probably a little early to get strategic change. the chairman said it is fortunate standard charger has

wintered, so many are looking at what sort of strategic changes he is going to bring about. >> thank you very much. we will be talking about u.k. bank later in the show. not just standard charger, but rbs as well. the bank could cut as many as 14,000 jobs. you don't want to miss that. the bond market in europe continues to trade at historic levels with yields hitting record lows across much of europe. yesterday austria saw five-year debt with a negative yield for the first time ever. less than 5% of european debt carried a negative yield. now it's around a third. you are paying for the privilege to lend money. if only real life was like that. fortunately, it's not. we need to try to understand what is going on. let's bring in the former ceo of the biggest bond fund. that is pimco and the chief executive officer.

your career, several decades. did you ever have this discussion, the idea nominal yields would go negative? >> not only did i never had this discussion, it would have -- if i had brought it up we would have been laughed at. this is a strange world. it's not obvious people should be paying for the privilege of assuming risk. normally you get paid. it's understandable because we are living in an unusual economic and financial configuration, but we are going to learn a lot as to how a capitalist system works with negative nominal yields. i'm not sure it's going to be good news. >> when did it cease to become a stimulus? >> when you destroy whole segments of the economy that need positive yields. the bangs, the pension funds, insurance companies.

it ceases being a stimulus when people say it is so strange it would be more risk-averse. >> it's a very delicate allen's we need to strike. -- difficult balance we need to strike. in the short-term term it is strong influence. q e*trade is a strong influence, as we have seen. >> if you are back in your fund manager days, would you touch this stuff? >> only if i believed in short-term capital appreciation. i would be in cash and in some higher risk trades more in the illiquid segment that cannot be you fully accessed. -- easily accessed. >> let's talk about the yield curve. i compare it right here before the bombs started trading today.

this time last year not a single german bonds traded with the negative yield. the seven year when negative -- went negative last week. some people are comparing this to the tech bubble of 99. any similarities for you? >> when you get is the cascading of lower rates in the yield curve. what is interesting is you put the differential with the u.s. the big change is we have woken through the 150 basis points deferential. that is significant. we are now at record levels of differential. that is key. i think the interesting thing is going to be relative yields as opposed to absolute yields. europe is going to be anchored pretty strongly by qe plus a sluggish economy, plus deflation. the u.s. much less so. the u.s. is in the middle of a

tug-of-war. that is key. >> what about the euro? we have seen them collapse with germany versus spain. her many as 100 basis points below the italian 10 year yield. cannot get even tighter? >> it's in the short term. you have to be an outlier like greece not to get pulled down by the lower rates in the high-quality bonds. there is a lot of allocation going on at this level. short-term the q e*trade is something you should respect -- but it is causing distortions. unless liquidity is available when we need it this will cause volatility. >> we will talk about crisis management. next, one central bank not joining the party. we will have more on ukraine and

greece. stay with us.

>> welcome back. most of the world central banks are easing policy. a very different story in ukraine. yesterday the central bank went into panic mode and hiked rates to 30%. mohammed has final thoughts. we can talk about troop movements, but let's talk about economics. this is a crisis.

>> when i saw the move, as eye-popping as it is, the real issue is do they get massive emergency external funding to try to stabilize the economy. they will not be able to do it on their own. the interest rate move is not going to be the impact. >> would it be foolish to ignore what is happening in the ukraine? >> yes, it becomes systemic. do we go towards more sanctions and conversations? it would have a huge impact. >> we talk about record lows and currencies. i am looking at the turkish lira at a record low. dollar denominated debt. is that a big concern going forward?

>> it's much less than it used to be. in the old days the emerging markets would break for two reasons. too many of them were pegged for the dollar. or there was too much currency mismatch. we see the corporate market under stress. >> thank you for joining us. we are going live to beijing as the top event kicks off. we will talk china and the outlook for markets after the break. this is what the equity market looks like here in london. the ftse 100 up eye to tenths of 1%. the dax up by a third of 1%. a heavy morning for data. pmi from france and spain and germany. in an hour we get the u.k. pmi. this is dominated by the service sector. it's about dollar lira.

the dollar at a record high. i am on twitter. we are back after this short break. ♪

jonathan: good morning and welcome back to "on the move." let's bring you a picture of the markets. ftse 100 a little bit higher up by 0.2%. mednax having its worst day in about a month yesterday. they are raising some of those losses. it is time to dig into these indexes and bring you some top stock stories with mark barton. >> itv, the broadcaster in the u.k., shares of by almost 5%. 233.90 is the record closed. earnings beat estimates. special dividend as well.

it is competent in delivering further strong growth in 2015. different story for ankle -- for henkel. fourth-quarter profit missed estimates. the ruble's drop holding back growth in russia. the ceo saying the economic environment remains challenging volatile, due to the continuing conflict in russia and ukraine. we expect stagnation in europe in 2015. biggest drop in the shares since august of last year. legal and general, we spoke to the ceo earlier. shares, 2.6% lower. earnings for last year rose 10%. they met analyst estimates. it is britain's biggest manager of retirement assets. it continued to grow its annuities business, but shares are near a record. it is the biggest drop since

march last year. i think it is a case of, better to travel than to ride. jonathan: mark barton, thank you. time to head east. china's tagus political event of the year kicks off this week as 3000 lawmakers gather for china's national people's congress. for more, we are joined by rosalind chen in beijing. what are we expecting from the mpc this year? >> mpc it is the meeting of china's highest legislative body. quite a lot is expected this year. it runs from tomorrow until the 15th of march. reform was a big focus last year. the key question this year is how to percent reforms while dealing with a struggling economy that is possibly looking at deflation. we also have pollution high up on the agenda.

we are talking about how bad the air is in beijing. the government said it will amend laws to curb air and water pollution and there are plans to an act legislation on soil pollution as well. the other big focus is corruption. this is likely to continue. it was a big push by president xi jinping when he came in in 2012. his spotlight does seem to have moved from government to military and business figures. the military is undergoing an overhaul. in business, inspections have begun in some of china's biggest state-run enterprises including china mobile and china national petroleum. back to you. jonathan: if you didn't have much time and you had to pick one figure i'm guessing it would be the gdp target. what are we expecting? >> that's right. it is a big focus for tomorrow. the opening usually the premier

will announce targets including gdp growth. we will know what that is tomorrow. it is expected that he's going to announce a target of about 7% this year, which is lower than last year. earlier, i mentioned reform. it is likely to drag on growth so there is going to have to be some careful balancing going to -- some careful balancing. there haven't been rate cuts in quite a while, but two in three months is a signal of how concerned authorities are about the economy. it is usually of time when things are kept fairly stable. economists are thinking that the government is worried about the economy and the economists surveyed by bloomberg indicate they think there are likely to be more cuts to deposit and lending rates in the next quarter. economy, a big focus. back to you. jonathan: rosalind chen, thank

you very much for joining us this morning. i want to keep the conversation on china. miranda car joins me right now. right to have you with us. let's start by talking about the gdp target. let me be a little bit blase. why don't they just get rid of this? wasn't that make life easier? guest: that is something that has been talked about. shanghai scrap its gdp target completely. another unprecedented step. most of the other provinces have cap there's and we are still going to keep around 7% for the national figure as a whole. the big debate is, if in the future, does it actually change? we are gearing up to the five-year plan. how they treat gdp, whether it

is put as a lower emphasis in that five-year plan is what is being discussed. jonathan: the remarkable thing is, 7%, 7.5%, whatever it is, we are coming off a bigger base. to me, when a central bank cuts rates, it tells me things aren't great. what is it telling you right now? guest: they are definitely going to reduce borrowing costs in the economy, but china's monetary policy isn't completely dictated by interest rate. it is a lot of liquidity. what you've seen his capital outflows sucking out liquidity from the economy. if they just cut interest rates normally, lending will grow again, money supply will rise again, and you get this massive boost. but if that puts pressure on the renminbi and you get currency depreciation and capital outflows, you've still got money

falling in the economy overall. what they need to do is cut the rrr the quite substantial levels to get the economy liquidity levels at the same amount. jonathan: the rrr rate is still close to 20%. where should it be? guest: you could take it down. it was only raised to such high levels after qe2 when you have these massive inflows of access -- of excess into china. before that the rrr was around 15% or 17%. in theory, you could take it down to that level. if they do that in one step, it causes a bit of market turmoil. jonathan: you touched on something about the currency, the fx rate. i'm looking at the exchange rate close to two-year lows.

they want a much weaker currency . what is the story with the chinese currency? guest: it is dangerous because if you think about what happened over the last 10 years, they've had to stop the appreciation pressure. that means you had money flowing in and that caused this money supply boost. if you depreciate, then exactly the same thing happens in reverse. that means they have to sell the forex reserves. you would actually have a bigger economic hit then you would otherwise. really strong depreciation is not in china's interest even though you'd think for export reasons or other reasons it would be beneficial. jonathan: when i look at export reasons, we are still very focused on pmi. the service sector is making up more and more of this economy. is that the one we should focus on, miranda?

guest: you are going to see that. you've got a slightly schizophrenic outlook for china at the moment. a lot of the service sectors are growing. technology is doing well. consumer spending is holding up at the luxury end. then you've got all the rebalancing constraints. if you're looking for growth, then yes, you look for the service side. but remember, you do have that slow down as well. jonathan: what is that shift from reliance on manufacturing to a service-based economy meaning for the labor market? guest: the labor market shouldn't suffer. a lot of the labor market was taken up with construction projects. railways and other infrastructure. that was migrant workers, which is the key thing. in the service sector, if you think of travel or tourism

online shopping, it can still be fairly employment-intensive. but also, remember, the working population in china is starting to shrink. you are not quite within the employment numbers either. jonathan: some people talk about how you legitimized the current political regime, you have to have a strong labor market. like a lot of things in china it is hard to get a read on the labor market. i look at supply and demand. that tells me there's a strong labor market in china. maranda, what are you looking at right now? does it tell you the same thing? guest: that a question in china's legal market is where the migrant workforce is. in terms of urban workforce unemployment, there's not much of a problem, but what you don't want huge numbers of migrant workers, whether it is in the

minds or the manufacturing. a lot of it is about the population flows and where the migrant workers are heading. if they are heading into the service sector in major cities, that's where we are looking for the growth. jonathan: we are waiting for this gdp figure. what do you want to hear from the chinese authorities tomorrow. guest: the gdp number, that is fairly taken as read already. it will be interesting to see. there has been a very strict anticorruption campaign. all of this is taking some of the growth out of the economy. it is constraining a lot of the activity. when you get in q1, you get a slowdown. problems start emerging. then you get some kind of -- the government steps in to support

the industry. it is unclear. they can't just do infrastructure. it is unclear what sort of magic solving of the economy is going to be for q2. they are in a consolidation phase at the moment. we think growth will be fairly good in 2015, but it is not clear what the government is going to do to promote that. jonathan: miranda carr thank you very much for joining us. as we had to break, the ftse 100 is higher. we are of by about 0.2%. coming up, it has been a big week for british bank earnings. standard chartered missed estimates this morning but it is getting a decent pop. i will tell you why after the break. ♪

jonathan: good morning. let's get to some of the top stories this morning. india's central bank cut its key interest rate by 25 basis points. the decision from the central bank comes just four days after the nation presented an infrastructure-focused budget. it is the second time india has lowered its rate this year. the sensex briefly broke through 30,000 points for the first time ever. according to a bloomberg economists polled, the people's

bank of china will cut benchmark lending rates again next quarter. economists forecast those rates will be trimmed by 25 basis points. china cut both rates on saturday by 0.25%. a very different story over in ukraine. that central bank raises its key rate by more than 10%. in a phone conversation with the ukrainian prime minister, u.s. treasury secretary jack lew confirmed america's commitment to providing financial support. that 30% benchmark rate kicked in this morning and is the highest in the world. it is the central bank's fifth emergency action since last week. federal reserve chairman janet yellen says the central bank is avoiding being too cozy with the wall street firms it supervises. fighting criticism from congress, chair yellen says she wants to make sure that regulators are not afraid to confront the financial industry. yellen has been facing attacks

from democrats and republicans. you cannot win. a report that rbs could cut as many as 14,000 jobs then at barclays, a fresh look at currency trading, and this morning, standard charter announced earnings with missed estimates. it has been a busy week. let's talk about standard chartered. anna edwards joins us now. stock up by 6% on a miss. i said i will tell you why. it is hard to find out why. you tell me. >> it fell a lot last year. it was the worst-performing banks in the u.k. last year. but the stock is up this morning as much as 6% as you said. pretax profit coming in below estimates. $4.24 billion is the full-year pretax profit number. the same story, it is below estimates. 2014 has been a tough year. they face a perfect storm.

they talk about their performance as being disappointing and say they saw intense pressure on margins and volumes. they are taking action on the cost side of things. the board directors are not taking any variable compensation. they've got a plan for $1.8 billion of cost savings to come out of the business in the next three years. they say underlying expenses increased by less than 3%. the ceo, the outgoing ceo, saying that he is on track to meet the cost-saving target. they are planning to cut staff by 2000 in 2015. they are part way through a transformation. all of this comes at a time when they've gone through a big management change, just announcing last week that they are going to change ceo's. peter sans have gone and phil winters is in. jonathan: what are we expecting from the new man at the top?

>> is what we are expecting from him and the team. it wasn't just peter sans who went. it was other senior executives. maybe winters will have a bigger ability to reshape the bank into the future. he is from jpmorgan. what interests me is what he has been doing since 2009. he spent the last few years as well as running his own rothschild family bank, he has been writing government-backed reports on the british financial system. all of this no doubt means he's close to regulators. he knows how to deal with regulators. people have pointed to his political mouth. we have heard from so many banking giants about their troubles with regulators and the financial penalties they are paying as a result. it seems this is caught up in the overall trend where banks are looking to those who got experience in the regulatory environment to leave those banks. jonathan: thank you very much,

anna edwards. as we had to break, almost 50 minutes into the session, stocks are higher. we are off session highs on the ftse 100. some sizable losses on the dax yesterday. the biggest one-day drop in a month yesterday, and a second day of losses today. in the fx market pmi in europe to discuss as well. ♪

jonathan: welcome back. some pmi to discuss. some other breaking news as well. the u.k. winning a court ruling on the ecb policy. i'll bring you some of the detail. the u.k. won challenges to the policy on clearing houses in a european union court ruling. the ecb lacks the power to dictate the location of central clearing according to the eu court today. "the pulse" is coming at the top of the hour. some news coming through, but it just means something. guy: it does mean something. there was this idea that the clearing houses, a lot of which comes through london, would be located in a eurozone country. the fact that the ecb doesn't have the power to dictate where those are going to be held, is

quite significant and great news for london. jonathan: the city of london, a very happy place. where else is happy? not greece and not ukraine. guy: no. this is reaching the point at which it is very clear that massive economic aid is now required. you sense that putin is pulling back. he's going to watch the economic story unfold and put pressure on the economy to see what happens and see whether that is another lever he can pull. i think the right move is another symptom of a wider problem that is taking place in ukraine and i think it is incumbent upon -- if the eu and the world are serious, this is where it now matters. jonathan: i know this is going to feature highly as well, india , another rate cut for them. 17 central banks. the year of easing. guy: where are we, march?

already, the year of easing. i think it is two things. one, part of the wider story, the economic story of this deflationary wind blowing around the world. governor rajan talked about vegetable prices and things like that. it is an indication as well as maybe a vote of confidence from rajan. this is a fine balancing act between needing to deal with the fiscal deficit but also needing to invest in infrastructure, and the sense maybe is they are getting that right. i think it probably is the latter. jonathan: i'm going to bring it back to europe, frankfurt, the german pmi coming across the screen now. 54.7. that's the final reading for february. the composite was a miss at 53.8. i'm looking at these the allies

and they do tell a story -- these pmi's and they do tell a story. guy: germany didn't have what ireland had. ireland went down very fast and is coming back quickly. germany didn't have that experience. those are still well north of 50. germany is still a very rich country with an economy doing relatively well. unemployment is incredibly low. maybe there's a slowdown. part of that is the rush a effect. part of that is greece. it will be interesting to see next month whether we see a bounce back. maybe there's a slowdown. if you start getting economies like ireland and spain going again, germany will be a beneficiary of that. jonathan: guy johnson will bring you that is. looking for the pmi to come in at 57.5. that is almost it for "on the move." these are your markets. pretty dull across most of the

eurozone. the tax off by about 0.2%. the for the 100 pretty much unchanged. you want to talk markets, you know where i am. i'm on twitter. ♪

jonathan: good -- guy: good morning. another surprise rate cut from china. governor rajan delivering the cuts following the latest modi budget. francine: standard chartered posts a 30% drop in full-year profits. jonathan:guy: reports suggest that rbs and barclays are looking to accelerate their exit from investment banking with thousands of job cuts expected. good morning. welcome. you are watching "the pulse