stoxx 600 is on the longest losing streak since 2015. ftse futures off by 12 points. it looks like we might open lower. caroline hyde has your market open. >> six days of declines. there we have it. action is needed. you have got obama saying he is losing patience. the finance minister of greece himself saying they could unleash the bailout funds overnight if they want to.

the arguments are still brewing. the cac off by just over a 10th of a percent. will they push up borrowing costs. we are opening a little bit lower. amazing stat. $6.5 trillion is how much stocks have inflated. you could have bought apple eight times for that. meanwhile let's look at the currency. the u.s. dollar trading lower at the moment. the french managing to report

obama actually said the u.s. dollar strength was a concern. it went down more than a percentage point. clearly we are seeing it is on a downward trajectory. meanwhile, it helps the euro drive higher. let's have a look at what is happening on the bond market. money is just starting to go back into the united states. borrowing costs are going down. finally the yields look a little bit appetizing. rekindling interest in the u.s. bond market. german bond markets a little bit lower today. this is why borrowing costs are rising. people selling the greek debt.

meanwhile let's have a look at some of the stocks. many have called it higher after we got a taste of the update, cutting 10%, up to 25,000 jobs. so far not to impress. -- not too impressed. it seems it is not going as well as hoped. suspicion is what is being said in the dutch newspaper. they are concerned about who would be cfo. it is perhaps not progressing as they hoped. by the end of the month they want the deal to be agreed.

>> thank you very much. about three or four minutes until the open. coming off a five-day losing streak. that is the open in europe. let's get the asian market and get out to hong kong. >> another day in the red. asian stocks falling for the second consecutive day. the shanghai composite down 4/10 of a percent. in the morning we saw some gains. it is now falling from the seven-year high. the first drop in three days. the latest inflation data showing consumer prices rose at a slower price in may while prices stayed in negative territory for over three years. the hang seng index down more than 1%.

also reversing yesterday's gains. chinese stocks are seeing some downward pressure, seeing some volatility from that decision on whether or not to include mainland shares in benchmark indices. japan is down one point 8%. it closed the session lower, falling for three days. we saw this rebound putting pressure on exporters today, but the big story came out of southeast asia where we are seeing a massive cell down. jakarta down at the lowest level in about a year now. there is growing speculation rising prices may send an interest rate cut likely. the philippines also seeing the worst day this year down 2.6%,

down to the lowest level in five months. we are seeing pressure on emerging stocks these days with expectations the u.s. will raise interest rates. that was what boosted demand for assets. now we are seeing bonds fleeing the markets. emerging markets now declining for the 12th consecutive day. this is the longest losing streak in 15 years. it is down for the seventh day. back to you. >> a big story for asia. hsbc plenty to cut 25,000 full-time jobs across the world. it is part of the plan to save $5 billion annually. we are joined by bill blaine.

jonathan, let's get to you first. we are down about a half of 1%. was there anything in the release that surprised you? >> the only thing that may have surprised a little was how much actual disposal is going on. with turkey and brazil gone a lot of it is about things like risk asset with vacation. it is a good cost number. i don't think people will have a problem believing they can deliver on that. in terms of how much clarity we have got they are looking at double the return on risk assets by 2017. how do you do that in this environment? i think there is skepticism about where the revenues go.

i think the fact there is a progressive dividend, they are signaling a positive outlook for capital. >> are you skeptical about the outlook for the environment? >> not particularly. i'm not worried about hsbc on its own. i think this is the end of an era for investment banking. what we are seeing is a 20 year phase were investment bankers have increasingly got to the top. now we are seeing that come to an end. earlier it was deutsche bank. i think it has gotten to the stage where the end of the global crisis means banks have to reinvent themselves to be simply banks. that requires proper bankers running the organizations, which is why you're seeing managers brought in rather than the kind

of guys we saw in the past, the gifted anchors who would create empires running the shows. we are going to see proper managers running the show. that is why i am confident that a firm like hsbc which has confident managers -- sure, there was quite a lot, but they have the capability to put in place a new working model. the question is about other banks and how do they follow the. i think it would be a mistake if some people suggested it sets itself up somewhere else. this is actually a pretty good place for banks to be. let's see what happens. i don't the at the end of the banking story. -- i don't think we are at the end of the banking story. jonathan: are the of locations bigger for hsbc if they move? >> the implications are bigger for hsbc.

for them it is about the important buffer. to be honest, i think they are making the right noises. i don't think they are holding anybody ransom. back to the point about investment banking actually, it is going to be less than risk assets. what you would call investment assets is 10%. they are a proper global corporate bank. a lot of it is to facilitate trade. it is a very different thing. with that said, emerging market banks have the same issue. you need to grow faster than costs. we still need to understand where you have got wage inflation higher across asia. how did they manage the revenue base?

that is the thing they need to get across. how much of the new target have they changed it anyway? there are not many new targets. jonathan: one thing we barely talked about is the politics of this. it's every political. this is a bank in a regulatory and political storm. osborne is said to reportedly and the era. is that about to end? >> that would be a grand thing if it did end. i think it would be a mistake for any bank to think this is a good moment to be moving into emerging markets. if we can establish the era of investment banking bashing is over we also need to establish a good base. i think we are right about what format it needs to take, which

is to facilitate corporate banking and we have seen the evolution in the last couple years of an increasing non-bank lending sector. the future belongs to brokers. >> you want it to be this bold investment bank. that is what the bank looks like. i get a lot of investors saying we will change. if i asked the question it is the modern day 2015 bank.

what bank is that? >> ubs. ubs has reinvented itself refocused. was ahead in terms of capital intensity. is there a bank you want to aspire to be? you want to be well and return to growth. ubs is doing that. >> and properly managed for growth rather than for market share. >> gentlemen, thank you for joining us. hsbc stocks down about extensive 1%. coming up is it some comments about prime minister it's a process ahead a meeting

tomorrow. and then private growth slows. british lawmakers debate and exit from the eu. those stories and more coming up after this short break. ♪

jonathan: good morning, and welcome back. markets just pulling back

globally. the ftse 100 pretty much unchanged. hsbc is the stock to watch. the dax off by another 20 points. coming off the worst losing streak heading for a sixth day of losses. the euro just dropping back a little bit. the relationship tracking high yields and a stronger euro. a volatile german tenure with the yield at 0.87%. let's get you up to speed on some of the top stories. apple unveiled its new music service streaming device. the company's worldwide developer conference in san francisco. apple music will be available on

june 30. pandora media fell nearly 4% ahead of the announcement. the chinese securities regulator is said to be considering a change to the rules. the change could allow one or 26-month rollovers of the contracts. the u.k. house of commons will have its first debate on the eu referendum today. the main opposition labor party pledged to back the bill to host the referendum by the end of 2017. prime minister david cameron said it is in the uk's interest to try to make changes in the eu and the countries membership. let's get to greece. frustration is mounting within the eu with the lack of a deal. angela merkel demanded urgent action, while jean-claude juncker said greece is not doing enough.

speaking yesterday in germany, the finance minister varoufakis question the eurozone's willingness to keep greece. take a listen. >> simply one sentence when she said, i will do whatever it takes to save the euro. nobody said, i will do what it takes to keep greece in the euro. >> let's get over to athens. i have to ask what is the latest coming from the greek government. has the tone shifted in any way at all? >> or think what we are seeing is the endgame completely transforming itself from a blame game on both sides. creators are blaming greece and delaying, not giving their opinion on the proposal. time is running out. we expect from the creditors to

come back with notes on our own proposal, which is our own redline. maybe if you have some debt relief we can have a few alterations. that's about it. then you have finance minister varoufakis saying the traders are sabotaging negotiations. it won't be an accident basically implying it won't be the creditors fault. it is a bad situation. >> it has been for four or five months. they come, they go. what are the new deadlines now. is it the end of the month? >> it has been a mess from the beginning. right now you have a june 30 deadline. that is the most extreme you can

get. it seems to be forgotten. we are talking about these figures she nations. it will be focused on june 30. it has to meet the large sum. if it meets all these needs and doesn't get any other financial aid disbursement then the wages have to be given in the second week of july. jonathan: our eyes have focused on the end of the month as far as politics are concerned. as far as the market, are our eyes focused on the german bond

market? >> just a look at the euro and how it behaved with all these negative headlines. the euro is falling. it is all about foreign exchange 101. you have the fed hiking in september. then you see the ecb might stop at one point one trillion euros expanding. i think it must we see a negative headlines from greece or we see a more fast-paced fed hiking in the future, then it seems the euro will remain in the foreseeable future. >> thank you very much. let's bring in stephen cohen. bill blaine is with us.

stephen, just to bring you into the conversation. we are looking at the german bond market, and everything seems to be driven out of there. is that the view at blackrock? >> i think so. it started on the trajectory higher. i think last week was a good example. you had seven or eight days of on yields gradually declining. equity markets not doing particularly well but settling down, and suddenly you have this doubling of bond yields in 48 hours. that sends ripple effect through the currency market. jonathan: we sat here a few months ago. i remember talking about this with you and then this low back. is this ap period of calm? or is it the beginning of the

end? >> we are only part way through this cycle. i do not think bond markets have fully discounted a change that has occurred. we are going to see that in a number of ways. take a look at the bond market. it has dried up completely. people are sitting back and waiting. they think there is still further to go on the retraction. we are seeing the data suggest that might happen. look at these german numbers. they suggest germany is the country benefited most from the weaker euro. i look back and say what a surprise. are we going to end up in a situation where the germans are calling out for a rate hike in europe while the rest of europe still struggles? we have not gotten away from the fundamental the rest of europe is still using the wrong currency.

>> we could debate that all day. there is no way to hide it. lebron bond market is doing its thing. where do i hide? >> china. jonathan: it has got a sense of humor. >> it is interesting. japan and china are forming, but they are not really a place to hide. they are a place to take on a lot more risk. we are seeing some interest in minimum volatility funds. some of these things give access to the equity market. we have seen outflows out of europe. q1 was a massive allocation into equity. you see that pay off a little bit. we have seen a little money go into the u.s., which is not

necessarily where we put our money. a lot of people feel it is a safer market to be in. >> there are hiding places. in the fixed income world, is there anywhere to hide? >> that's a good question. we expect rates to continue to back up. the upcoming data is not inspiring. it is stronger, but it is not convincing us there is a mess of need. a lot of the market is calling for a september hike. even as we see more entrance into the labor market, i think there is a possibility we stay lower for longer. does that mean you want to pile into bonds when the market still feels it is time to stay out? >> stephen mentioned china.

we are going to see that after the break. chinese inflation slows. we are in hong kong with the latest after the break. join us in two minutes. ♪ .

jonathan: good morning and welcome back to "on the move ." i am jonathan ferro. 30 minutes into the trading session. let's get you up to speed on where markets are. a picture of equities. the dax, 10% from other record high back in april. in correction, down another 0.3%. the stoxx 600 on a six date losing streak, is there more downside to come? possibly. a guest saying forget the 10% decline on the dax, there will be another 10% downside. lifting the lid on the index.

caroline: the ones moving the most. i want to focus on the downside which is where we are trading. one of the biggest followers down by almost 2%. it is all about equipment to help your mail be sorted more efficiently. not too pretty when you look at the numbers. 2.3% in organic recurring revenue. ubs said these are serious headwinds. their concern is the group's profit margin is under threat. poor performance at the low end of their full-year guide. many people listening to ubs' call it is not looking pretty. only two air france up. -- on to air france, up 1%. we have some updates on the

airline's stocks. cuts to a hold to buy from air france. they said there is no sign of the pilot program. that is not looking very nice. unit revenues worth that in the first quarter. overall, they are saying the earnings are not on the positive trajectory. now on the green. you were ftse trading higher. one of the reasons why. the italian oil company may be selling off a stake. now we understand of according to italian press, they could be selling a 20% stake worth up to $1 billion. i know you could pronounce it much better. ubs is more positive on the sector when it comes to oil companies.

they said that responded to the oil's downward trajectory. that is why it is trading higher. jonathan: caroline hyde, thank you. the stopovers. i want to talk about equities. you have to talk about china. consumer prices rose slower in a may. let's go out to chief economics correspondent enda. enda, great to have you with us. inflation data, does it tell us anything new? enda: good morning, it is about the factory gauge. the factories here have asked dan didn't more than three years of deflation. we take that against the backdrop of a weak economy that means they will not want to invest. when companies do not want to invest other is at of subdued

demand, that will be true to the real economy and consumers. when you are not hiring and giving pay rises, consumer prices will remain low for some time. taken together, subdued on the front and that is not good considering how we could be economy is already. jonathan: i am on a terminal. i look at the decision, a series of rate cuts. what does the inflation data may further people's bank of china? more rate cuts to come? enda curran: a tricky one. some people say pboc will stay on the sidelines as they do not need to raise because there are tentative signs of stabilization. they point to some stabilization among home prices and exports. what would one know over coming days, we are retail sales and other key stocks which will give a clearer picture including credit blending statistics.

by the weekend we will know if the pboc needs to do more or use auto tools. maintain lending programs and make sure credit gets to key part of the economies. so, i would say at the moment we do not know what to the pboc's next step is. jonathan: may be whether the shanghai composite it is going next. the chinese does including in the msci index and a decision is due later today. is it an incremental type of thing? could it be that significant? enda curran: if you and i knew where the index was going, we were not sit in these chairs. it is quite significant for china. the green light would mean potentially billions of capital coming into the economy.

it goes toward the picture of the economy opening up a modernizing and taking down borders and allowing capital to flow freely. they want to the currency to be internationalized and use of reserve. it will be quite symbolic a sign of its advancement and step forward. for sure, i do not believe so many feel the shanghai meets the capital given the red hot values. jonathan: enda curran great to have you with us. let's bring in stephen colon chief economy strategist at black rock. bill blaine is with us. a strategy -- a strategist. let's remove through these stats. the value created on the stock exchanges. enough money to buy apple eight times or circle the earth 250 times with $100 bills.

it is a lot. is it too much? >> it will be but not yet. what we have seen in the last six months and is kicked off in november, but in november was when the pboc did the proper rate cuts. you have seen this series of cuts and you will see more. the data around inflation is china is deflating and economy is slowing. they need to do more and they know they need to do more. the pboc when you look at aware real rates are, you are going to see more and ultimately on the side, it is clear the authorities have the ability to generate. jonathan: bill, we talked a couple of months ago if that is the top of the markets and many people speculate it is, whether the talking about capitulating. what is the point of capitulation in china?

when people buy stocks instead? bill: we are getting those moments. yes, you're quite right. there is upside to come. coming into this market but not just as simple as a being a normal bubble. we have to look at the whole chinese economy and see why people are pumping money out of property and prestige cards -- cars against corruption and these things. there are pumping money into stocks because they think of the easy way to double up and they are dragging people. these are not the only factors nor the biggest factors. the whole phase other chinese spending over the last 20 30 years built up infrastructure much of what needs to be replaced. it is about state enterprise and how that has been.

it is about trying to create sustainable jobs to keep the economy going. these are all struggles, almost coming to a crisis point. that is the real concern, not just stocks. does china whether the crisis that is coming? it is more than a stock bubble. jonathan: you know what people do when a crisis is coming, you do not address it. europe is good at that. bill blain: that is a concern the chinese pumping more money. jonathan: when i see there is a big red headline this morning that said the chinese regulator is weighing allowing roll over of financing, shouldn't they be doing the opposite and tightening things up? steve: we see this headline that will pop up and say as the market will drop 5% and on the

ground, you will hear that was the big headline. and i think it is a disconnect of what is stated and what is happening when you look of what is going on. again, i think it is exactly as you say. there are reaching a difficult tipping point. it is not going to happen overnight and they know that. they are trying to figure out how to go through. bill blain: the history of the illusion doing it. steve cohen: i agree. we can see more. and i think there is an exit story. the economy, bull market and also all of this you mentioned going around connect. what does it mean for investors? jonathan: how significant is that? steve cohen: it would be significant if they go ahead and do it. how do they do it? clearly, a balancing act about when the market is ready.

a lot of money. bill blain: that's what they are trying to balance. you asked what trouble we put ourselves into and we sat here and said our problems in china. as soon as you do it, somebody will turn around and say you are wrong. nothing is wrong, key buying. jonathan: people who cap to buying a terrific amount of money. at some point of course. especially after these levels with a market finance behind some of these stocks. when you go forward and look at the mcsi is a too big of a deal if it happens to save money comes out of the wider space? steve cohen: you can argue what you saw in india. it is that it has gone from being a hot market in 2015 and china is the hot market in 2015.

the only difference with china is it is hard to access it. if you start to open up the access, clearly that will have to be rebalancing within that. bill blain: and you get the allocation question, where do you put what you have allocated when so many parts of the em market looks much worse? let's go for the least a ban of the options. ultimately, you lose more. -- at the least bad of the options. i think china kicking going. it's a volatile ride. asia has been one of our most preferred area. those have been. again, i think you are where emerging markets i think where moving past and looking at each country and really decide what it means and pick your moments.

look at brazil. you can make a lot of money in a short period of time. jonathan: a 10 year in germany is five basis points. we talk about china. bill blain: i cannot help think and maybe i am wrong, i cannot help think keep putting money into china now is a little bit like saying i will give up heroin tomorrow. jonathan: we will leave it there. steve cohen and bill blain. appple aims to reclaim is crown as the biggest provider in the music space. the latest on the music streaming service after the break. ♪

jonathan: a good morning and welcome back. i am jonathan ferro. we are 45 minutes into the trading session. the ftse 100 is pretty much dead flat all morning. the action on the dax. the dax in correction territory. 10% off the record highs we hit back in april. the stoxx 600 coming off of a losing streak, it is the longest so far this year. switch off and check out the euro. the euro is a little bit weaker. sizable rally yesterday. the euro at 112. one month volatility on your

role-dollar hitting on a daily basis on a closing since the highest of december 2011. sterling at 1.5274. 10 year in german unchanged. time to talk doubtful. the tech giant had the developers conference yesterday in the highlights will be unveiling of apple music. a brand-new music service streaming service. let's talk to caroline hyde. a developer's conference and a developers conference and they got excited about one thing. we got excited about something else. is that the story? caroline: not because of drink taking stage -- drake taking stage. they were excited about the programming language which is fun enough. swift a way of programming. they are happy about it being open source and writing code for apple. this will we got excited for.

he did not perform. drake was there to talk about apple music. we probably first interacted fell in love with the apple brand because of music. because of the ipod back in 2001. itunes in 2003. they kind of lost it. they locked into the new guys when it comes to streaming. they lost out to append doral and spot -- they lost data pandora and spotify and jay-z's tidal. they released it for less than $10 a month streaming, radio as well. bbc radio one. connect way you can actually interact with the musicians. that is stealing a bit of sound cloud's jennifer kwon -- these upstarts and startups in streaming music. and get it back. typical apple.

they are a little late to the party when it comes to watches and a bit late when it comes to tablets. they will make up for it. jonathan: they are going to do better. i remember my friend came back with his big rock of a thing called ipad. and then to the phone and it did not matter anymore. that is probably why they took their eye off of the music. was there anything missing? what does it mean for the other big players? the end of the world? caroline: many do not believe it is the end of the world. it makes streaming go mainstream in the same way perhaps palpable in the maker of -- pebble and the makers of smart watches are not too worried about the iwatch. it puts it more on the market. perhaps the default. this is where the world becomes. and the same way you use apple maps because you have an iphone perhaps you are not using google

maps. if everyone has a smart phone with an apple, you might lose a down. most of the world still use android, samsung. i do not think it is a end but they will be were written. what was missing was tv. many are waiting to see streaming of television. that is not come yet. they have all of the agreements with the music producers already. they do not have agreements with a tv producers. they are in negotiation with cbs, fox and they are taking longer. netflix can rest easy for a while. our lives not unleashed tv -- out who has not unleashed tv and i think that is coming up next. you have a new app. you will them to go to your iphone not only for your music but also all of your news. your bloomberg news, your new york times news.

that is going to be interesting. and for google now as a competitor, intelligence. an upgrade to ios nine kemper did whether you will run -- can predict where there you will run into traffic. an interesting one. jonathan: thank you very much. some of breaking news around greece. greece set to repaid to creditors. a new plan to ask creditors for money to repay the ecb. a big bond redemption through july and august and a lot of concern about whether they can meet them. and increase t-bills as well. some highlights -- after the break, i will break down the headlines as said you for the rest of the day. a debate on the eu referendum and i will break it down for you. stay tuned. ♪

jonathan: good morning and welcome back to "on the move." coming up today, house of commons holes of the first debate on whether to hold a referendum on eu mentorship. anna edwards has a more. it looks like there will be a lot to talk about. anna: david cameron made the promise to hold a referendum in it is building just a couple of years ago. let's be clear it's looks like

the bill will probably pass. david cameron and the tories have a small majority. they said they are not going to oppose this bill. the key question is how much does that this drive apart or divide the ruling conservative party? jonathan: the other side of the story as the backdrop. a day ago, forcing the cabinet. if they campaign for an exit. anna: how prescriptive the prime minister is going to be on his tory mps and how much they must take as we work our way up to a referendum? he had to back away from comments he made or said he had been misinterpreted by the media in the comments he made. what is the process from here? the first discussion will take place june 25-26. we do not know the timing.

the end of 2016 is all we know. will not get much help from david cameron. he said he will not feed information to the media. he will tell everybody wants he renegotiate. jonathan: maybe he was misinterpreted like barack obama was about the dollar at the g7. thank you. a picture at the markets. almost wrapping up the first hour of trade. the ftse is up by 0.1%. hsbc, a big overhaul. a plan to slash 10% of the workforce. the dax in a correction territory. down another 0.3%. the stoxx 600 on a 6th day losing streak if we and the red today. a quick look at the euro. one euro buys me 1.12.

one pound will buy me 1.62. want to talk about these? i am on twitter. ♪

francine: hsbc could cut as many as 25,000 jobs as they plan to save $5 billion a year. apple seeks to regain dominance and the music market with a new streaming servers. frustration mounts with greece. angela merkel demands urgency. and president obama voices his concerns. ♪ francine: welcome to "the pulse ." i am francine lacqua. we have had a lot of