will they pry open the books? this is what we are watching. european equities are set for a small bounce. also, quite substantial losses in markets yesterday. let's get caroline hyde with the details. caroline: the equity markets followed suit and have awoken to the issue that the united states may be raising rates. it puts downward pressure on the united states. the biggest fall since january. emerging market stocks have been falling for nine straight days. the longest losing streak since september. yet, we are opening up .4% on the ftse 100. we are getting back some of the falls we saw yesterday. speculation is growing on whether the federal reserve will raise rates.

there is divergence with the rest of the economies. you have china cutting rates and the ecb buying bonds. all of this is to inflate the global economy. you have the united states starting to rain back and increase interest rates. that is on every investor's mind, as is greece. we have the ecb and the imf to getting talks in brussels and creditors going over to athens tomorrow. let's have a look at the effect on the currency market. it was the first to react to the speculation on the reserve raising rates. -- the federal reserve raising rates. the dollar is down .2% as we speak. this is dollar versus yen and the dollar is up. the reaction is against the

japanese currency at a 7.5 year high. we are seeing commodity markets react. they are up flat at the moment and we have seen a bit of a concern about china overall. it is weaker than estimated and the factory output data from the second-biggest economy in the world. people would love that in europe. it is slower than people have expected for china. those are the stocks we are looking at. we have earnings coming through thick and fast. it beat analyst estimates, the world's largest provider of temporary workers. we will wait for it to open. the european postal service is not looking so bright.

the structural challenges and sluggish growth is not helping rates and delivery. many trades are getting put through. eon is up .5%. terrible, if you look at it. it is down on the value of assets. many knew this was coming and the german utilities were hit by the focus on renewable energy, backing away from nuclear reactors. it may have already been priced in for eon. big moves could be seen. it is in order for 1.6 billion dollars, plus any interest. this is coming from a ruling. anna: thank you. mario draghi is speaking at the ecb conference in frankfurt.

one of the topics is the effectiveness of nonstandard monetary policy. we will bring you the headlines as they come in. what he has been talking about is the expansion of the policy tools used by the ecb. he says the ecb expanded holocene tools to meet -- policy tools to meet its mandate. yesterday we had the biggest selloff of the year. in the united states, stocks drop across the board, pushing the s&p and dow jones into negative territory. meanwhile, highs against the euro. let's talk to the investment director where he helped more than $4 billion in assets. welcome to the program. thank you for coming in.

the market we have seen this week has a lot of movement happening. it is wiping out gains on the year so far. europe is a different picture and it is the driver. is this all about currencies? guest: the virgin monetary policies are being executed by europe and japan. this to virgins is an increase in policy across the board. you see it start off in the currency market and it goes out. of course the fixed income yields are collapsing on the back of the ecb and more buying. you will see further compression of the yield. the idea is that the corporate bond yields will follow and ultimately, lead to the cost of our wing to come down -- borrowing to come down.

the market volatility we are seeing this year, as opposed to this year -- last year we had volatility because of the extreme monetary easing in the united states. but, i think, for this year, it will be higher and we will see a continuation of that. anna: could you see a situation where the dollar becomes so strong and concerns about corporate valuations become so great that it delays putting up interest rates? ashok: earnings have come down from 10% to 2%. part of it is energy and part of it is earnings in currency having impact. with the continuation of the dollar trend, there is more. in terms of whether the fed does

or not, it has to do with the impact of energy prices on inflation rates. it pushes further out and, at the moment, the eyes are on the unemployment rate which is coming flat. the wages are up 1%-1.5%. we have a lot of hidden unemployment and a lot of part-time employees. to an extent, it means the fed does not have to move quickly of front. the market anticipates the move. anna: so much hangs on where the oil price is heading. you mentioned the conference in frank forfurt. are you clear what the yields

are? ashok: the market and the banking system has a lot of it and it comes with it sucking it out. i think the investment grade bonds and the high yield are going to be the ones bought first. i think that it will open up the excess of capital to households and the cost of capital in the periphery is very high, compared to the cost in germany and france. i think it will be slightly better. anna: thank you. ashok stays with us. creditors come knocking. will the greeks allow viewing of the accounts? we will have more when we return. ♪ >> a sanction of the programs we

announced as part of a more comprehensive easing package. this package has been effective in approving the pass through from liquidity injections to the private sector. bank lending rates to corporations declined in the third quarter of last year coinciding with the first targeted long-term refinancing operation and our announcement to purchase bonds. also, i should add, following the repair of the bank alan sheets to the -- balance sheets to the stress test. furthermore, model-based estimates indicates that controlling for others inflations of expectations have reacted positively to the expansion of the balance sheet over the past few months. there is good reason to believe

that, if our balance sheet grows more substantially under the expanded asset purchase program, it will support a rebound of these measures of inflation. our monetary policy announcement was largely anticipated. on january 1, 2015, the experts attached 60% higher probability that we would announce a purchase program at the january meeting. and, according to various surveys expectations were quite high in automotive flash year. the -- in automotive last year. -- autumn of last year.

it has accounted for the fall since august last year. the same applies to movements in other market metrics. the on to that -- beyond that -- anna: mario draghi speaking. we will continue to monitor that. stay with us. ♪

anna: welcome back. this is on the move in london. we are monitoring mario draghi. one of the things the president of the ecb is saying is that the ecb is aware that the measures they are introducing entails financial risks. the big topic is nonstandard measures that ranks are employing, such as quantitative easing. we have seen some downward pressure on yields as a result in the french market. that is a feature of the trading. 14 minutes past 8:00 and officials are gearing up for a look at greek accounts today. let's get the latest from hans nichols. bring us up to speed. hans: the latest from a greek official says that the talks will continue in brussels today.

officials are heading to athens and they are already there. the question is, are they actually going to have meetings? that was the question coming out of yesterday. it does not look like any scheduled meetings. they are looking at the books poring over the accounts receivable and what is coming in and out. it is important in order to entertain any possibility of getting that total. he started to hand that his credibility is on the line and that we can only start discussions when people are welcome in athens. if that remains an issue, it will continue to take. i told the greek minister that it will have to start tomorrow or i will lose credibility. there are questions on how long greece's government can fund itself.

two-three weeks according to an official who refused to give his name. to get the additional bailout money they have to implement the reforms. before they do that everybody has to look at what the books are saying. anna: hans nichols keeping an eye on all things greek. let's go back to ashok. you talk about the risk to profits. that is the risk. where is the reward? the quantitative easing that starts in europe and the move in the currency market, are they going to reap the rewards? ashok: the risk is the of grades taking place in the equity markets and we have expectations of an increase to 12% and something similar for the year after. this has to do with the sales

picking up on the back of the fall of the oil price and, hopefully, with the easing that is taking place and the cost of funding coming down, there will be a growth expectation raised for europe and germany is going up to 1.5%. for the eurozone, something very similar is happening. this basically means that, on the back of the lower energy prices and the lower interest rate structures coming through corporate earnings are going to improve further than the market is expecting. we have seen tremendous buying of the equity market because of the international funds introducing under waiting. -- underweighting. we want to see that before they become overweight. anna: are you worried about what the bond markets are telling us at the moment?

are you worried about bond yields? so many time horizons are on negative territory. does that worry you? this would normally be a big warning signal. ashok: it is unusual. we have nothing to look at. it is new. we have yet to fully understand and digest the implications of what this actually means. the fact the ecb will be buying bonds means that again, we are in a new era with no full understanding of the consequences. the bubble is going to get a lot larger before it gets deflated. the bubble in the bond market is going to hold all risk markets up. it is higher volatility. given that the authorities are pushing investors into the high risk part of the oil market, i

think, to that extent, they will find support and continue to move up with more volatility. anna: what we are seeing globally is a move towards lower interest rates and central banks taking action. you furnished me with a statistic that was useful until 6:00 this morning. 55% of central banks have cut interest rates in the past three months. we have to add in thailand. that makes your statistic out of date. does that carry on throughout the year? how long does the trend live on? ashok: we will have further monetary easing and inflation as the rate continues and the cut in the oil price continues to feed through. so, i think that the easing is going to continue for a little while longer and the

consequences of all of the easing is the economy growth expectations improving for the year out. that means corporate earnings can be better on the back of that and the energy-related part of the market. there is strong support for the global equity margins on the back of what is happening out there. anna: thank you very much for joining us. coming up a shuffle at credit suisse. brady weighs in with his advice. we will be live from zurich with that. let's go back to mario draghi who is saying the slow down in growth has been reversed. he credits a number of other factors. mario: the effect of the shock will not extend the on 2015, -- beyond 2015, in part because our

measures have decreased the risk of a fax from the fall in oil prices. -- effects from the fall in oil prices. it has been revised upwards. ♪

anna: welcome to on the move. change at the top for credit suisse. succeeding brady at the top.

at the press conference in zurich, manus cranny was in the front row and had the opportunity to sit down with brady. critics say he did not act fast enough to change strategy at the bank. how did he respond? manus: he was defensive and would argue that he said aggressive targets. he said there was a target to reduce leverage at the bank to $930 billion. the accusation is, do you need to do and anthony jenkins? do you need to re-band -- rebrand rbs on a global basis? i said, anthony jenkins and i caught up and he said that the universal banking model was dead. what does that mean for him and credit suisse? he was defensive.

brady: the question of global banking is different. for credit suisse, we have, i think an important franchise that is focused. it is the high end and capital-efficient banking model. they work together closely and it is far from a universal banking model. i think that it will be -- there will be room for different models. there will be global universal banks that work and make the business model work. i think that is hard and has gotten harder. that is what anthony is speaking to. it has gotten harder to make that work. there will be more firms that focus on certain areas that they are good at. that is our view. as a result of the crisis and the regulatory changes, you get more focused and specialization. i think that is fine.

for instance, we think we have a great segment with higher and private banking and institutional business. making those work together. we think we can driver turns in the industry and that is the strategy. manus: there was a sense of relief from brady. he instigated the desire for the succession change. we had a discussion at the end. which part of his 25 year career did he enjoy? he said, he loved building businesses from the ground up. he was a billion-dollar producer when people did not know what a billion-dollar producer was an that was back in 1999. anna: thank you very much. manus cranny in zurich. putting a price on sanctions. we talk about the ruble, oil

and doing business in russia with the ceo of the russian bank. we had to bank. let's see equity markets. a different story. we will be back in two minutes.

anna: welcome back. i am anna edwards. we are 13 minutes into the -- 30 minutes into the trading day. a different picture from the one yesterday. we are seeing equity markets making up some of the losses yesterday. let's get the details from caroline hyde. she is watching those. caroline: one of the top at the leaderboard is telecom italia. we are closer to more consolidations with european telecoms. it is a deal that is in the works for a long time.

they look to merge the units of the telecoms assets. it means less competition and it is a boon to telecom italia, the biggest player in italy, at the moment. another player says they may get a majority stake in a network put in place. all of the focus is across european investment and the networks. also consolidation. we are seeing it play out. the visual number is wins. they are getting close to the deal that is in the pipeline. let's have a look at one of the biggest on the stoxx 600. they are cashing in. the family is saying they are selling 12 million shares for 1.5 euros each. this came from goldman sachs,

the sole book runner for this. the family is cashing in a little bit and sending the stock lower. the big one to look for is a smaller stock. it is off by 50%. cairn industry -- energy. this is about indian tax authorities. they say they want interest and penalties. this all has to do with transactions made in 2006-2007. cairn says they will dispute that. these are the key movers today. anna: thank you very much. 32 minutes past 8:00. shares are lower for russia's second-biggest lender. it deals with both western sanctions and the high lending rate that was meant to stem the

decline of the ruble. joining us now is the chairman and president, andrey. thank you for joining us. great to have you in the studio. let's talk about the interest rate environment. interest rates in russia are 15%. there will be a meeting to discuss the rates that have been volatile, as of late. where would you like the rates? andrey: it will be a gradual process and my expectation is that it may make a next step to 14% later this week. i would prefer lower. at least a level of 12. the central bank will be cautious. anna: how much of a negative impact is this having? andrey: very much.

we are borrowing rubles from the central bank to pay one billion rubles a year, which is $1.6 billion. we would compare to 20 when it was 5.5%. -- to 2014 when it was 5.5%. now it is 15%. it is more expensive. other russian banks expect a cost of funding. anna: you see a logic to what the central bank is trying to do? andrey: i do. i think what was done had effects on the exchange rate. it was designed to bring the interest rate down. anna: you are going to get some

more support from the government. do you need more equity? where would you get the funding? andrey: we will get it from deposit guarantees and as much as $5 billion into your one preferred stocks. -- in tier one preferred stocks. anna: is that coming this quarter? >> we expect that in the next couple of months, we will get it. anna: one of the subjects we must talk about is sanctions broadly and how they specifically relate to your business. the sanctions environment featured a listing of global deposits on the london stock exchange. are you considering moving away from london? andrey: we are happy with the

exchange and we have a good relationship with the london stock exchange. because of the policy, we still do not know. i mean u.k. treasury and the european commission who is responsible for the decision if we can convert gdr into stocks. we are looking at other stocks like hong kong, for example. i do not think it is a solution. we will continue to work with authorities in europe. and then, the sections are not forever, i would believe. -- the sanctions are not forever, i would believe. anna: it makes it more difficult for companies like yours to do business. >> the answer is yes. we have experienced many economic difficulties. we have to accept the situation for the time being and work in the new environment in the new conditions. it is difficult, not impossible.

anna: many russians have made london a second home and you have the foreign secretary talking about recruiting more russian speakers. do you ever -- did you ever think the environment would be so tense? andrey: we are surprised about the position towards russia and russian business. we would like the relationship to improve. we believe negotiation will improve and create better conditions for business. anna: let's talk about the sanctions conversation and your access to the messaging payment system. i know you have said that russian businesses not being able to use swiis would be devastating to relationships between the east and the west. -- swiss would be devastating to the relationships between the east and west.

andrey: the sector will perform easily. to perform internationally will be difficult. it is not a solution. i would like to reinstate this kind of sanctions on such countries like iran, with which the west had no relationship at all. i do not think it will be useful for any european or american to have that kind of relationship with russia. i do not believe there will be such decisions. it is unfriendly, you could say hostile, actions against russia. anna: would the chinese payment system be an alternative? andrey: eventually, yes. not at the moment.

sanctions make us think about alternatives because of the international financial structure becoming more, for us not -- not very convenient. there are threats on our security. it makes ius work closer with the chinese to develop alternative systems. anna: one example of the dedolla rization of the russian economy. does the path continue? andrey: our economy, the dollar played too much of a role. that is not good. eventually, it would happen. for many years, they were proposing rubles. unfortunately, the devaluation of rubles does not help. using chinese currency and, eventually, russian will be the

solution. anna: what is your prognosis on the economy, as it stands on the brink of another recession? andrey: our forecast of the bank is that there is a decrease in gdp around 4.5%. our forecast for 2016 is a return to growth of 2.5%, partly because of government investment in the economy and oil price. and, positive effects of import substitution process. anna: thank you very much for joining us. good to see you. andrey the ceo. we going to earnings after the break and find out what shares are a little higher. that is coming up. here is a picture of the markets. things are looking rosier than

yesterday. certain benchmarks are losing gains for the years. -- the year. you see the european equity markets this morning. we are taking a break on "on the move." ♪

anna: welcome back.

let's bring you back to speed. u.s. stocks fell yesterday and brought the s&p and dow jones into negative territory for 2015. stocks in europe are trading higher this morning. chinese industrial output retail, and sales growth missed analyst estimates. factory production rose 6.8%, the slowest annual start in years. china sets its lowest growth rate target in 15 years. u.s. officials -- officials are gearing up to look at greek accounts today. there are doubts. the european finance ministers pressured greece. the biggest banks in the u.s. will get the annual report cards from the federal reserve when the federal reserve releases the

results from the second of two phases of stress tests. last week, all of the banks that went through the test were told they have enough to absorb the losses during the economic downturn. eon reported a loss. that is writing down the value of the assets. utilities adjust to germany's shift towards alternative energy. across the story, is there any good news here? hans: we are always looking for the silver lining. there is a little bit of good news. they cheated the cost-cutting target and -- i achieved the cost-cutting target. -- they achieved the cost-cutting target. they announced a $4.5 billion charge to do with energy assets in italy, the u.k., and norway.

not a total surprise. look at the underlying income and it comes in at the lower end of expectations. it did not disappoint that much. everybody expects energy companies to go through a difficult phase. he says there are extremely low oil prices and adverse charges. the further decline in power prices are having a decline on the business. the forecast is cautious. it underlines the income of $1.4 billion. some estimates are for $1.6 billion. it is not exactly a positive number. nobody was expecting a great outlook from the energy company. in the second half of the year we will really find out what eon is trying to do.

they want to have an energy asset that has to do with clean energy that will have the brand on it. they will have nuclear and coal-fired plants separately. we did not get as many details as we wanted. we will get more in the second half of the year. anna: that is the broader picture. thank you very much. hans nichols reporting from berlin. coming up on the program, what deutsche bank stands to gain from the change at the top at credit suisse. here is what is happening on the equity markets. things are looking rosier than they were yesterday. equity markets are losing all of the gains on the year for some of the indices in the u.s.. things are looking a bit more positive. there will be headlines from the bond market and the yield on the

10 year dropped to a record low of 0.5%. it was below 0.5% for the first time ever. we will have more on that when we return. ♪

anna:>> it has been a long time of challenges for the industry and there has been a lot of work we have had to do.

we have been proactive and aggressive about that. that has been good. for the sake of the organization, i hope there is relatively less. obviously, it is dynamic and we will see. the targets we have set our tough targets and we think it puts us in a good place, as we discussed. we think it puts us in a good place. it is a dynamic environment and we will have to see. i hope is that it is the case and it gets easier for the industry and for credit suisse. anna: that was brady dougan the outgoing credit suisse ceo on the investment banking landscape in europe. he will be replaced by prudential's ceo later this year. it could be good news for the rival, deutsche bank. let's get to nicolas in frankfurt. why is credit suisse and the change a good thing for deutsche

bank. nichola>> they expect a refocus on wealth and asset management. that means revenue will go to competitors. credit suisse is not alone. as you saw in the share price reaction, you had rbs and barclays moving. all of that would theoretically, allow deutsche bank to really gain market share and revenue from competitors. anna: is the debt trading market a good one for deutsche bank to be in? are they under pressure to enact any kind of retrenchment? >> precisely. the patterns are retrenching and this means that this is a problematic business area for some investors. you look at the share price last year and the biggest decline are

in global investor banks. some are unhappy with a focus on debt trading. deutsche bank does not have the same optionality. they do not have asset wealth management as far along as the competitors or consumer banking the has developed as high returns as the competitors. so, the have relatively little options with is this. they have to tough -- with the business. they have to tough it out and hope it gets better. anna: thank you for joining us from frankfurt. that is almost it for on the move. for those listening, the first word is up next. for our viewers, the pulse is coming up. guy johnson, you must be all about the banks. guy: what is happening with the

euro zone and the euro? we will be talking about that. how do the italians perceive the shifting environment? we will talk about the banks. as you said, a big story. we will get mario monti's take on that. huge changes underway. nichk was laying out the read -across. the dynamic is fluid and it is not clear. we will talk about that during the show. i think greece will dominate during the next few hours. we will get a feeling as to whether or not the books will be open. anna: it was not entirely clear where the meetings would be taking place, brussels or athens? the troika, whether they will get access to the numbers.

we have a great piece on bloomberg talking about how greece is running out of time, money, and friends. you see the french finance minister saying you have to get serious and show is the exact details. guy: do you think that is a recognition of the fact that most leaders now accept this? it is a dangerous proposition. there is a creeping evolution that is being led by non-europeans. anna: a lower risk conversation like this was 2011. ashok:guy: we will wait and see. anna: fascinating moves in the market and we will pick up on that. u.s. indices lost any value they created in the year so far. much of that was concern about

the stress on the dollar and what that does to equity markets. we spoke about european equities and we will see european profits upgraded. guy: there has been a trend towards that. you see data that shows you that. you were looking for something missing crisis -- price, and it has to be european equities. you assume the dollar movement has been massive against the euro. if you're a dollar-based investor, that takes the edge off. anna: thank you very much. guy johnson and the team that puts together the pulse will be with you. we look at equities right here right now in london. we are seeing strong gains across the european equity markets. we have also had headlines in the bond markets.

the yield on the french 10 year bond is dropping to a record low. you can follow me on twitter. it is a:8:56. that will do it for us. we will leave you with a pulse. see you tomorrow. ♪

guy: the euro weekends, hitting a 12 year low -- weakens hitting a 12 year low. francine: the greek government is ready to review its accounts. the former italian prime minister mario monti will give us his take. guy: inside british business. with less than a week until the budget and two months until the election what politicians need to do to get votes. ♪