it surged over 70% in the past 12 months. another monster valuation. internet startup interest, $11 billion, double the company's valuation 10 months ago. the three things we will be watching. euro stocks future data flat. dax is up the nine point sprint let's get over to manus cranny. a very special day for the irish manus cranny. manus: a hint of green on the equity markets. excuse the pun. set the tone in the dax. pretty big expectation number. really saying gets ready to lurch into the european markets they have structurally changed they are more efficient.

european evaluations are more attractive. as soon as they get up, we will look for that he's at bloomberg.com and get it on our twitter account -- we will look at that piece and get it on bloomberg.com and get it on our twitter account. we spoke to the ceo, you see sales of dying but not as much as a market had anticipated. no turnaround for this year. quarterly sales declined. sales dropped by 1.9%. the market thought 2.6%. 150 million pounds invested in lvmh. we caught the with the ball gary and ceo will said 2015 has started well -- we caught up with the ball very and -- bulvarian ceo and he said 2015

has started well. it has been solid. they cannot rule out further revisions to the copper production from one of their biggest mining facilities in c hile. those are the three individual names. cars has not joined into this rally. car registrations are up by 7%. renault at 0.08%. autos are the stormers. 38%. the industry group that has led the stoxx 600. european car registrations are up 7%. vw you saw their numbers for the month, up 11% three germany and spain, spain is up 20 per -- 26% in terms already straight. vw saw their registration at

11%. i cannot talk long enough to get renault open. the aussie rba acknowledged they have to do more with the rates but they did not. the need for patience. the dollar is a little skittish a little nervous. how desperate is the dollar? you have a couple of weak manufacturing numbers. the bloomberg surprise index is the lowest since 2009 at combined with the bart chart which is inflation expectations -10 year. ten-year inflation expectations, they are not negative, they are around 1%. desperate times for desperate measures. your fx trading. do you want to shave a little bit before the statement

tomorrow night? jonathan: manus cranny. thank you. happy st. patrick's day. renault opened higher by a full 0.25%. japan keeping regular -- record stimulus unchanged. kuroda cannot rule out a dip in inflation below zero. from tokyo o'brien, great to have you with us. a lot of people will be asking is the bank of japan's 2% target lifting away? reporter: it seems to be going away. kuroda try to put the best face forward and saying oil prices will wash through a wages will start to pick up and the cpi data will head in the right direction. it is starting to look like the 6% target is receiving out into the ocean.

jonathan: when you look at what the bank of japan is doing and comments from kuroda and not capital acquisitions, it reminds you how the bank of japan is already doing. they are buying bonds and extending the balance sheet to ridiculous levels to gdp. what is next for the central-bank? brian: you are right. it is extreme central banking by international norms. they may have to revisit the queue he can go a little deeper into nontraditional asset classes for you one idea is they may delve more aggressively interregional bonds and a move to get things cooking. though real problem is wages. they have been following for about 19 months straight free until that kicks in, it is hard to see a number next taking hold -- abenomics taking hold.

jonathan: would you think the tightening will translate into wage growth? brian: we may see a little beach. go into a disinflation and a moderate wage increase and that is progress. some of the automakers are starting to think a little bit about wage increases and that may help. it would take a long as sustained effort to get consumer spending going. you have inflation without wage growth you are not win to be in a happy place. jonathan: thank you. -- you are not going to be in a happy place. -- jonathan thank you. brian bremner. a headache for quite a few. it has been a haddock for equities in a number of european nations. check out earnings from oil and gas across europe, up almost 45% in new what -- in norway. almost nothing is swiss went and germany is not on there.

-- almost nothing in switzerland and germany is not on their for obvious reasons. oil prices could climb to $80 or higher by the end of this year. what do the european equity markets think $80 a barrel looks like? let's ask our guests. the bart chart is from you. how does it translate into the equity market? guest oil at $80 is good. october of last year, we were not that far away from $80. it has collapsed a long way. let's settle and stabilize at 80 and by the end of the year where does it get us? so ferociously on the back of energy sector downgrade. the earnings of 2015 have halved and that has driven growth for

europe down by 6%. jonathan: back to the bart chart, italy perhaps the less obvious. we have already had a this amazing run in the equities market for he is it that a sign we get a rebound in oil, we can go further? karen olney: interesting you should say that. we ran our report card. you have seen dividends. it is now expensive on a different databases. for the past two or three decades, it is been quite cheap. utilities and energy companies. now, it is not cheap. i cannot push the italian story. it is not cheap. it does not rank well in our scorecard, it is 10th place. jonathan: look at the asset my -- smi, it is loaded. is their a trait?

karen olney: absolutely. if oil goes back to $80, the ftse versus pharma. pharma has been a safe sector. safe havens in pharma stocks. it is the place to be like the energy sector was. $80 oil out of pharma into energy stocks for jonathan: if this is $80 oil, what assets will stay here? $60 on brent. karen olney: the rolled -- of the world has to readjust. look at 20 or 30 years oil was always around $10 or $20. the world readjust. energy has come down.

no longer a dry are european markets. jonathan: karen olney will stay with us. we put those vertical chinese stocks in context when "on the move" returned. join us in two. ♪

jonathan: welcome back. i am jonathan ferro. this is "on the move."

some of the top stock stories. sales of sainsbury have missed estimates. the retailer reported a fifth straight quarter of sales declines. sales dropped to less than estimated. peoples seem to like when things are less bad. autos are up. auto sales raising several percent for the month of february. i want to look at stocks. the china equities surge continues. the shanghai prices not seen before the financial crisis off 2008. the index has climbed over 70% in 12 months. the dax taking the headlines. european qe, look at this. north of 12,000 points, the first time ever. conclude tomorrow, the federal reserve meeting, will they derail the rally?

karen olney at ubs is still with us. karen the fed meeting, will they derail? you look at the u.s. surprise index versus the eurozone economic surprise index. who is hiking the rates here? europe seems to be beating a low bar and u.s. the high bar. karen olney: that is it exactly the high and low are. u.s. has had profit cycle. economic surprises are turning upwards as they should be. they collapsed 2015 -- 50% in 2015. it has kept the global engine going. it is high, it is the peak. that is sensible. if the euro keeps growing at a sensible, ok pace good for

your. if they inch up, they should be going up. it widens at the gap. great news for european equities. jonathan: the dax we use this word, "on a terror." -- "on a tear." it really has. karen olney: nothing goes up in a straight line. you have things ready to get it off the table. it has not really moved. europe as a whole, a long way to go. a lot of these gaps over seven or eight years have only closed by 10%, fit been sent in the past few months. -- 15% in the past few months. jonathan: a different chart. investing on european equities.

i am think i missed a huge rally of the dax but i haven't, have i? karen olney: i haven't. you haven't missed anything. what america needs, stabilize for a lot of them are not hedge. that's a perfect entry point. jonathan: went do think it comes around? daschle when you do you think it comes around -- when do you think it comes around? karen olney: there is a high correlation between the euro and economic surprise is pretty the upside, the euro stabilizing and look at what happens in the past history. jonathan: you touch on some of the flows. some of the etf flows europe first the u.s. and it's like night and day. karen olney: you have had a massive flows into the u.s. for

or five years when they had their cycle best performances 2007. when you look at europe and the u.s., europe lags 35%. it is early, early days. quite small still. they are turning but still very small. jonathan: if i had an fx strategist at made a big call for 2015, the big call is a call for parity. what is the big conviction call? karen olney: conviction call on fx? on equities? is it sit where it is, it could go up a little bit. a 10% bond. earlier today they have not moved in four years. they are just starting to move. a little upside to go. jonathan: karen olney head of

strategy at ubs. a picture of the markets. the ftse 100 is higher. up by 0.5%. record highs in the equity markets. another day, another high -- another skyhigh high-tech evaluation. valuations of $11 billion. we talk about sales and this more. pinterest. we talk about after the break. ♪

jonathan: good morning to you. up to the with bloomberg's top stories. holds opened for israeli general election. the most survey is saying it is too close to call. some polls say that netanyahu is trailing. the final results will be announced later on thursday. a bank director stipulates -- the bank of japan kept record stimulus the same. the nikkei closed up by 1%. growth at goldman sachs asset management.

the smallest division and returned about half as much as jpmorgan's asset management last year. they said it will be sustained. want to bring it back to tech. another day and another skyhigh tech evaluation. it is pinterest, raising money that the values it around $11 billion. with us is caroline hyde. the company's valuation. we can talk about what it is. i call it a monster value wage. caroline: less than a year, almost all. it was valuing itself at $5 billion 2014. less than 10 months, $11 billion. it is going hard and fast for scrapbooking site basically pretty you can pin images you like. jonathan: i do not get it. i have never been on the website i do not know what it looks

like. caroline: i am an addict. probably cause i have a house and i have declaration. that is where it starts. you can pin pictures. overall, dug around your house and your wedding cake and your holiday plans -- decca rating your house and your wedding cake in your holiday plans for you can pin it -- decorating your house and your wedding cake and your holiday plans. you can pin it. they have 17 million active users in the u.s. we do not have international numbers. they are scaling up. they have a line of investors. horowitz, a japanese company. jonathan: what do they want to use the money for? that is the big question. we do not have a clear read.

caroline: it is revenue-like like many of these huge, elit companies. e the snap chats. a lot in the do not bring revenue. think twitter. where they can build. advertising. advertising models. since january, they have an advertising option out there in the united states for companies such as gap. the same way when you tweet you see a tweet in front of you that is followed by a certain company. you have lots of pins and sponsored pictures and a fireplace by a fireplace company. and food by kraft if you're thinking about baking. they are thinking about other ways of promoting pins. certain mobile apps.

the lives of -- of the likes of facebook. downloading them. many companies like that as an option. advertising is where they can bring in money. and how they can scale albright. the united states is where the company dominates. and in tokyo. they want to really scale it up. if you look at the numbers, the fact that they are worth $11 billion because there are raising money. they are looking for more than $200 million more. they are on the fcc. international users up 135%. they are doubling the amount of people who want to use them are brought. almost half of their user base is abroad. maybe they do not have the content raising -- ready. i find it frustrating because i can see pictures of what i want

a but i cannot buy them yet. jonathan: i will go to the website and i promise. the big question is i've seen the big valuation of the company, i've seen snap caht. -- chat. have you seen any of the money around the 12 months ago? is it still there? caroline: it is still there. people are starting to stick their head above the power pick. people are asking if they should be above $1 billion? these are the heelys in front of you. uber airbnb snapchat. they will have to start to fail. coming of age it we will see the winners and losers. a little bit about the amount of funding.

the jonathan: fascinating stuff. the fed. decision time. the turkish and central-bank. what does it mean for the lira? stocks high in london. ♪

jonathan: good morning and welcome back. i am jonathan ferro. 30 minutes into your trading day. how things are shaping up. dead flat across much of the euro. the dax is off of the record high. down by 44 points. the ftse 100 is up by about 0.5%. the stronger euro. the euro/dollar is up. will heard plenty of calls for parity sometime this year. a bold call all beyond parity by midyear. everybody slashing.

back to the equity markets. the top stock stories. caroline: one of the key fal lers. the mining sector. we spoke to the ceo earlier. the reasoning is it is a trouble whammy in a bad way. it's missing profits, sales and full-year dividends. also key issues and key mines in chile. they set on heron -- inherent uncertainty. on the upside, biggest growth is sainsbury up by almost 1%. it is better than many had hoped. you are looking at margins and profitability. yes, it was down. yes, it is all. it is better than expected. likely story for sales.

sales are down 1.9%. many felt it would be more than 2%. managing to beat the rather pessimistic expectations. when we spoke to the cfo, he said, sales are not going to be in a prettier for it was 9-12 months. keep an eye on diageo. johnny walker and painting an optimistic picture. the irish are liking what they hear. more upbeat on current trading. they are pushing the stock higher. jonathan: caroline hyde, thank you. decision day at the central bank in turkey. the president has taken a softer tone against the bank was a looks like a rick is a latorre meeting. -- a reconsider torilla -- reconciliatory meeting.

our next guest of the lease the central bank will stay on hold but any concern in the euro or live rep in the aftermath of -- lira in the aftermath of the mating -- meeting is somewhat pessimistic. great to have you with us. a very simple question, in my be hard to answer as i look at the turkish central bank, i wonder who runs it. isn't the president of the country or the president of the central-bank? it has been complicated. guest: it is a very good question. temporarily, a good grasp of monetary policy at least for now and that is why we were calling for a rate to remain on a hold today. we have seen a relief and pressures and that is why we believe bashi is in control of

policy. jonathan: you think the political pressures return later this year? roxana hulea: definitely. we will see a return of political pressure soon. it is for several reasons. we have seen a plunge in industrial production. there is definitely their rationale of elections coming up in a june. an earlier today, we have seen dave looking to very comfortably at core inflation and not the other measures of inflation headlined and expectations. with core inflation going down, we believe the pressure on the central-bank will resume quite soon after this. jonathan: over the past 12 months, will seen the turkish lira get battered. on the fx, you look, what is

your outlook? roxana hulea: we believe the pressure will resume and the relief will be temporary a temporary one. we would rather stay away. we have a call to the long lira and we believe, it is at 2.7% target is in reach. jonathan: another record high for dollar trade. the politics. i know what the president wants to happen, he was more rate cuts. what would you do if you were the governor of the central brink? -- the bank? roxana hulea: should be cautiously looking at rate cuts but doing it in a gradual way and looking more and expectations. expectations and if they will consider rate cuts, they should

be doing it in a gradual way. what we expect, we tend to monitor easing. we are looking -- we expect 100 basis point cut until the end of q2. if they do it in such a way, the selloff will resume. jonathan: two-day fed meeting. are we going to have a rate wage and the federal reserve trying to communicate the first rate hike in since forever? roxana hulea: umm, i do believe -- we are calling for -- we are practically bearish in fa we have put on the positionct.of being in the space. we try to remain in a cautious sense and we favor all of the

spaces that have a low correlation between the rate of space and fx space impact. staying away from iran and the lira and indonesian rupee. just favoring even the rubel, which has a low correlation with anything. jonathan: going forward, i look at the j.p. morgan emerging markets fx those story has been both in oil and a dollar story. going forward for you, bet against the turkish lira. which one are you acting on -- betting on? betting to go stronger? roxana hulea: umm. i would be -- umm -- i would be -- i continue to -- for the short

run it is a short for me. a position i would revalue over the midterm because assets present a good evaluation at this point. that's for now, definitely a bearish position. jonathan: roxana hulea emerging markets strategist. we will talk a stock on the move after it beat sales numbers. the fit a straight quarter -- the fifth straight quarter for sainsbury. we will talk about that after the break. ♪

jonathan: welcome back. this is "on the move." polls open for israel's general election. the most recent survey suggest it is too close to call. some postseason netanyahu trailing the opposition leader. both fall short of an emergency. results will be announced on thursday. bank of japan kept at their stimulus the same. bank of japan's governor corroded once it lower -- kuroda wants it lower.

china's holding of the u.s. government debt declined for a fifth straight month. japan is is within $1 billion of u.s. treasuries. an online scrapbook companies start up, has raised more than 300 $80 million in funding which values of the company at -- 300 $50 million in funding which values the company at $11 billion. a company considerably less than pinterest is sainsbury a field straight -- a 5th straight quarterly fall. bloomberg intelligence charles allen joins us now. it is less a bad, should we be looking at the bright side? charles: a couple of positive

things. the number of shoppers is up which is always a good sign. and part of a consequence, a food volume it is all. it a money terms it cost less. jonathan: you can do something with volume but what does it mean for profit? charles: this year's consensus is probably as expected. next year expecting a small drop. we want to see the degree of deflation over the next few months to see if it will worsen or not. jonathan: look back to last year in the story of 2014 of european retailers was one of doom, gloo m valuation, market caps on getting sliced in half. 20 -- 2015, do we reach that? charles: we are still early.

the level of inflation/deflation will matter and will depend on harvest and weather. the sort of comment out of the depression seems to be happening for food retailers. we are seeing more customers and possibly more people into the shops and we will see some other nonfood sales pick up. that is another positive. jonathan: sitting here in london and thinking they are obsessed with the retailers in the u.k. supermarkets. when you come to london and the cities, you see these little shops ringing up everywhere. when you see the retail and real estate strategy are they adapting already? charles: that has been going on for a little bit. sainsbury is continuing to open

convenience stores and hardly opening any larger supermarkets. demographic reasons people want to spend less money. people going to smaller shops and gore less to the larger supermarkets. jonathan: did they expect it or miss it? did they think the smaller convenience stores would cannibalize the sales? charles bank may be the degree to which it happened was unexpected. tesco has been opening convenience stores since the early 2000. they are expecting that. the degree the shopping has changed has surprise people. jonathan: charles allen, thank you. equities, a little stronger. auto leading. the dax is up 40%. closing 12,000 points yesterday for the first time ever. all time highs.

i want to bring up the euro. the single currency, a stronger euro. euro/dollar 0.25% off of session highs. forget parity. we have gone below parity. bank after being slashing their forecast of where the euro is going to end up. coming up, we will head to israel. and they head to their polls predict we will head to tel aviv for the latest. the beautiful tel aviv. ♪

jonathan: good morning and welcome back to "on the move.” i am jonathan ferro. the general election which can see benjamin netanyahu defeated at the polls but to retain his position as prime minister. if you are confused, i am a little bit. a man that is not confuse, elliott gotkine. he is here to explain the it all comes down to i guess voting blocs rather than the party. give me detail.

elliott: that is right. essentially although netanyahu's, party which is a right-wing party which has been trailing in opinion polls, about 4 seats between that and opposition, zionist union. opinion polls one by natural right wing coalition for netanyahu and then the seats and potential allies. unlike of other countries, like greece for example where the biggest party always gets the first chance to try to form a governing coalition. in israel, the president with the final results are in, he will cap whoever wrote the shoulder he think is likely to form a new government. even if it netanyahu's party is the second biggest in parliament, he can end up being prime minister. it will not be the first time. two years ago the guy running

on the -- she won the election. netanyahu could still become prime minister despite losing. jonathan: elliott, you get closer and closer and people start pulling got wild card. nasa developments overnight. -- massive developments overnight, what's the story? elliott: netanyahu trying to shore up his right away. he said if i become prime minister again, it will be the fourth term, there will be no palestinian space, which is not something that will go down well in the white house. but it will no doubt resonate around his core voters. and we have the woman on the same ticket as opposition leader, isaac herzog, they formed a government issues going to take over.

yesterday, if it means they are more likely to form a government, she is determined to see that netanyahu doesn't become prime minister, she will relinquish the opportunity to be prime minister if it is standing in the way of a zionist union forming a government and keeping netanyahu out. quite interesting when you have a politician that loathes a politician so much they were give up the possibility of been the leader of their country. jonathan: you mentioned the white house here. obama is supposedly neutral to the development of these. would it be fair to say if netanyahu does get rejected, white house -- obama will not be in the white house shedding tears? elliott: that would be safe to say. he was not pleased when netanyahu went to washington at the request of

republican-controlled congress to speak there. obama refused to meet him even though he's a he does not meet prime minister's when they are in the midst of a election. it is fair to say their personal relation between netanyahu and obama has reached -- and if the opposition wins, you could apple prospect of a reset of relations. certainly we know if it was not election time and netanyahu says something like that about negotiations, the white house would not be keeping phase. they would be expressing their concern about such comments. given we have elections today the white house is wisely not saying any ink. it is safe to say if the opposition wins, the personal relationship was unlikely to be terribly affected even if netanyahu was to win. if we get a government of --

something netanyahu ruled out, what would it be? the possibility of netanyahu think prime and served for half of the term. how would affect u.s. relations? -- the possibility of netanyahu being prime minister for half of a term. we have to wait. the real indication of who will have the best chance. jonathan: we talk about the political nuance. i want to bring it back to economics. we will have a general election here. talk to me about the ease really economy. the bank rates and central-bank. it doesn't paint a picture. what is the story? elliott: well, compared with the europe, the israeli economy is going great. europe is the number one trading partner. it has grown by more than 3% next year.

you have the record lows. boosting the housing markets but that is not many israelis reason to cheer. not iran or piece with palestinians but the soaring of houses and cost of living. many cannot afford to buy a home. that resonates among many u.k. voters. ordinary israelis find it hard to make end's meet each month. my grocery bill here is significantly higher here that when i lived in the u.k. so many more things are more expensive even if they are made in israel and they are cheaper when exported. the cost of living is one of the biggest issues. the business community will probably be happy either way. we saw the stock market hitting their record the other day.

jonathan: this is as usual. thank you, elliott goggin. for you listening on the radio, first word is up. for viewers, "the pulse." we are joined by the host guy johnson. guy: macro themes. teh fed and in the british budget print you wonder which will be more important -- the fed and the british budget you wonder which will be more important for the british economy. jonathan: central bank you can forecast. what matters is the here and now and people on the street. guy: those have been to finish the moment. let's put it that way. that is interesting and the likes of mr. drawdy and comparison -- draghi and comparison between the 2.

ceo of ferragamo. jonathan: looking forward to that. if you want putting the conversation, i am on twitter. good luck for the rest of your day. ♪

guy: so much for stimulus. japan's central bank governor won't rule out to risk of inflation falling below zero despite the artillery quoons spent on the country's q.e. program. israel expects a huge turnout at the parliamentary elections. fashion and foreign exchange. what does cheap euro mean? ferragamo joins us live for an exclusive conversation.