i will be talking about that through the morning. looking at futures markets in the red. stack futures up by 39 points. lettuce wrap up the week. european markets open. caroline hyde. caroline: a bit of a wake-up call. finally, the imf walks out of the negotiations. market starting to feel the pain after this week. expecting the dax to open lower as well. meanwhile, the euro continues to trade down against the dollar. up by three tents of a percent. -- up by 23% -- up by .3%.

concern over the greek debt crisis. we are seeing a go for safety in the bond markets. we are seeing money moving into japan and germany. meanwhile, money coming out of italy and spain. is it because we saw an injection of supply into the markets yesterday. money coming out of spain. interesting the desk interestingly though, greek has started coming down again. still, not a sudden run for the asks it -- sudden run for the exit. but is have a look at the s&p market. not one of them is more expensive than the ferrari. they make seats for the airplanes. the delays continue. they have been hit by strikes.

jpmorgan saying look -- the french are opening a criminal investigation into the crash and the french alps. with tons of says they do not know anything about it. jonathan: the dax off let us get out to asia. sherry, a volatile week. shery: asian stocks rebounding. these last days erasing the

kleins. still on a -- erasing the kleindeclines. stocks ending the week lower by 2/10 of a percent. leaving the decline. lower as well .2%. expectations of the mers outbreak there. cooling the market down. despite the rate cut we had, the portfolio output was more than $600 million. south korea, taiwan, india altogether. the investor selling a net $1.5 billion of stock. expectations for the u.s. rate hike, seeing it also in the currency market with the philippine currency plunging

this week. chinese stocks leading the gains. there is strong speculation that after the rate cut, and new zealand, that the pbot may cut reserve requirements. the index also trading higher. mnikkei and the week trading higher. final industrial output numbers showing expansion month on month of 1.2%. back to you john. jon: a volatile week for asia. the imf team have left brussels after failing to make progress. this as european officials say there is no more time for gambling.

let's get up-to-date with our bloomberg team. i want to start with you, hans. what exactly went wrong and what is the fallout? hans: bill site tongue -- zeit ung is claiming that the imf is pulling out, and that they are talking about looking at what happened in the meeting when sonata. the german press seems to be moving some of the bond curves out there. there is a great deal of pessimism. on top of what the imf did, it is clear they want to send a signal. imf saw no progress taking place. the big question i have is, was

it a signal to more than just the greek government? how much divergence and attention? namely countries like germany that have been reluctant to publicly talk about the idea of writing down some of greece's debt. it was the big question about the imf. are they as upset with the other editors as they are. jon: let's bring in jones. the imf clearly sending a message, but to who? when we talk about creditors versus the government, we talk about them as this group of institutions with one coherent view.

there is a little bit of friction between the various parties right now. >> there are disagreements, and different points of view within the creditor group. the greek prime minister tsipras, in the last four months, has tried to play on this and put little wedges in between the organization institutions in the creditor group. from our perspective it seems like there is frustration on both the eu side and the imf side. mostly targeted at greece. the comments by the european union president where the strongest in this way of any eu official. it shows that the frustration has been ratcheted way up and they are both trying to say that we need something to get done now. next week's meeting of the eurogroup will be the final deadline.

he said if they don't have something there, that is the crucial meeting for getting something done on greece so they can meet their end of june deadline. jon: my question is, we go into the weekend. we have seen these kind of headlines before. as you go into the weekend, what do we need to see happen? hans: the imf come back to the talks. the fact they left means of they come back the talks could be serious. if we get to the 18th, even of that are saying the luxembourg deadline, that could be too late to get everything through the national parliament. i am looking over the weekend to see some card of sign that they have joined the fight. maybe if we have another submission or proposal that could be another positive side,

but we don't know either of those things. jon: thank you for joining us this morning. that is our bloomberg team let's get the investors take. we are joined in the studio by maneesh singh. he oversees more than $2 billion in assets. i want to start with you, should i take the rest of the month off and come back in june and see what the can kicking looks like? >> i don't think so. we have seen so many weeks of negotiations. i would say from one to the other side from greece and from merkel holland and the imf. what i read is that we are very close to the final deal.

win-win for everybody or lose lose for everybody. after all of the improvements in the governance, i cannot imagine that they won't strike a deal by next week. jon: close to a deal? all signs say nowhere near a deal. >> it is all leading to a crescendo. my view has always been that greece will get their deal because germany once the deal to happen. to me, the most important thing is ecb. i'm less worried about that. jon: i was reading your latest report. that was one of the takeaways to me. why now? >> there are two reasons. we are heading from the fear of

deflation into the fear of inflation. the inflation and the oil price, went from $40 to $60 per barrel. we know in the incoming quarters, deadlines will go up and this will force investors to revisit the fears of deflation out of the system and we're headed for fears of inflation meeting the feds and mrs. yellen will announce by the end of this year the monetary holocene in the u.s.. on top of which, you have what we call the correlation between bond prices which have changed from negative to positive. in the recent past when bond prices were going down and yields were going up the equity prices were going down. this is the new market pattern

we can have a good feel with equities and bonds. when the bond market suffers the other factors suffer also. the only other outcome is cash or u.s. treasuries. >> when you manage other people's money it is hard to tell them you believe it in cash and charge them for the privilege to is that an option? >> have to the practical. i still believe that the euro zone economy is doing well and for me the main thing that has changed is that the ecb -- they have the contagions. then look at what the fed is going to do next week. that is something nobody is talking about and i will not ruling out but i still think it will be late september. jon: you look at the situation with the fed and ahead to next week, how do you expect them to play this out in the next couple

of months. >> you think you need to get ahead of the curve? if it does play out and inflation shoots to the upside how does the fed handle that? >> the fed must be and has always been proactive, not to the accused of being behind the curve for too long. but what we have added is the monetary poly analysis. the market is focusing exclusively on the rate settings but the fed can also play with the dots. a full recovery in the next two to three years. the fed can also plate with the balance sheet which have increased to 500 billion in the last few years. the fed has many tools to play with. it is not exquisitely rate

policy. >> that is correct. inflation will be the main thing. they can pay a hired about -- higher amount on deposit. if you have european banks getting money from u.s. taxpayers -- and the fed was given this power by congress that is the controversial measure. whether they can use it to control inflation or not. that is something we will have to hear from the fed. jon: this is a movie i have seen before. three months ago, everyone is hearing deflation and you guys are all talking about inflation overshooting to the upside. when i look at your strategy reduce your holdings at bond. bondsa are headed for their worst quarter on record. how do you play it? one of the even more aggressive? -- why not be even more

aggressive? >> fixed income or you have a fixed coupon is somewhat in danger at a time when the inflation regime switches from the fear of negative inflation to somewhat positive. income is not a good idea in this environment. but you have many viable coupons. you have a big market and the u.k. and need to see what is considered in the west. i would advise to switch out the fixed income into a more viable income. jon: just to wrap things up. the take away from the conversations, what not just buy volatility in the u.s.

right now? >> i'm not a big straighter. i would -- bigs trader. i would rather trade equities. you don't see a valuation and less volatility is high or a global macro crisis. if you look at valuations, it is fair enough. there is still room for equity. jon: the head of global asset allocation, thank you for joining us. coming up ceo dick costolo flies the coop. will twitter ever make money? the imf bails out on talks. keeping it in the family, rupert murdoch is ready to hand the baton to his son. those stories and many more. stocks just pulling back. ♪

jon: we are about 20 minutes into the trading session this friday. ftse 100 off by .4%. the dax off by 75 points. switch up the boards and check out the fx market. the euro headed for a second week of gains. the dollar-yen, this currency

pair headed for its worst week so far. off the back of the kuroda comments. he does not see much more weakness for the yen, guess what happens? yen strength through the rest of the week. some of bloomberg's top stories. dominique will learn if he has been found guilty of aggravated kimping charges. the former imf's chief verdict will be read today. rupert murdoch is said to prepare to step down as the chief executive officer of 21st entry fox. the billionaire -- twice first century fox. he will hand it over to his son james. zimbabwe will officially remove its local currency from circulation. the multicurrency system introduced in 2009 to stem

inflation. they will offer five u.s. dollars for every 575 quadrillion zimbabwe dollars. that number exists. changes at the top of twitter. dick costolo is stepping down and cofounder jack dorsey will be ceo in the interim. caroline: he may well hang his head and hold onto it because it has been a rough ride. he waves goodbye after five years at the helm. there is no end to management shakeups when it comes to twitter. not less than five product heads. the chief executive steps aside. he has a lot to be proud of. he took his company to ipo in november 2013 and a huge the relation. since then -- huge valuation. since then it has been a huge

plunge. he leaves with very little. he remains on the board but leaves with no stock awards, no severance pay, and leaves behind some $16 million in stock awards. jack dorsey riding to the rescue. cofounder and still chairman of twitter. he went off to set up another company. he is the cofounder of square but has always had his finger in the pie. he moonlighted in 2011 and 2012 to bring on new products. he was ousted. who does he sound like? who left the company and came running back and became interim ceo and led them in pursuit of huge things? none other than steve jobs who came back in 1997, having been

ousted in 1985 and went on to form the ipod and others. he sometimes refers to himself as editor. he wants to make his mark once again. many feel that he was a longer-term role. maybe he wants the full-time job to be ceo again, not just interim ceo. there are others who could be up for the job. anthony noto. think of what all of these people have to tackle. the trends are tough at twitter. slower pace of user additions. 300 million people using twitter now. 1.4 billion at facebook overtaken by whatsapp and instagram. and he marketing think it has -- emarketers thinks it has less than 1% of the digital advertising market.

jon: let's ring back in the head of investment -- let's bring back in the head of investment for cross nation capital. they have to convince the general public that this is a service worth using. you and i use it regularly, but the mast public don't. -- mass public don't. >> i am a great fan of the company, but as you know twitter was not the business they wanted to start. it was the way the founders communicated. let's see what the new ceo does. whether the business can make money or not. that is the big question. say, is there a dot come bubble? the way the markets work, there is no shortselling. there is no one to come and counter and sate this is not worth so much. that is another story to bear in mind. jon: the private market and the

public market very much the same in one respect. a consensus 12 month price target on twitter. $48 per share. that is suggesting for a 40% upside. are they too bullish on this company? >> i would say it is difficult to value such a company when you cannot see how or where they will make money. but you are writing a trend -- riding a trend. like you know, you're doing it for a small part of your portfolio. the bigger question looms in how they will generate the revenue. jon: just to give you time for a shameless plug. netflix up 35%. >> i put that in my newsletter as well. we are again talking about a new

technology. almost a new way of watching television. them doing new deals. that is exactly what the technology investment is about. it is about trend and momentum play. i maintain that there are some stocks out there -- jon: great to have you with us. coming up greek stocks soared by 8%. since the close, optimism has evaporated. that imf headline dropping minutes after the close. afc futures are up by 4%. 27 minutes into the open. the ftse 100 off by 24 points. the dax off by 26 points. join us after the break for more. ♪

jonathan: good morning and welcome back. let's bring you up to speed on how markets are shaping up. we opened low. we stay low. the ftse 100 off by 20 points this morning. the dax down by 0.5%. we are trimming those in the first 30 minutes of the trading session. have a look at the fx markets. one euro buying you 1.1234. your goal by 0.2%. dollar-yen heading for its worst week so far in 2015. those kuroda comments really

lighting a fuse under the yen. greek equity markets, big story yesterday. the asc jumped more than 4% by the close. minutes after trading ended the imf announced that there had been little progress in talks. there's been some exhaustion. let's get to bacillus karaman us over in athens. this word, optimism, gets thrown around. the move to the downside, maybe not as aggressive. are we expecting that this morning? vassilis: the thing is, we did have yesterday the largest rise in the athens stock exchange in three months basically since the february agreement. what we saw yesterday was a pricing and of the mood yesterday in athens.

the future was down by 0.5% earlier. it seems that the market was feeling a bit nervous. [indiscernible] we have the weekend i had. still, there is a best case an array go will reach a deal. that supports the downside, especially when you have really negative headlines. jonathan: do you think there's a difference in tone, in sentiment, on the streets of athens compared to berlin and london? a lot of people here are cynical about the potential to secure a deal. are people more confident in athens? vassilis: you have to see the headlines out of the greek media and the foreign media. greece, at the end of the day has to keep the market calm.

you need a positive feed coming out of the greek government. you just had the ecb upping the ela. it was a very large increase. that's more of a communication issue at the moment. indeed, people in greece do feel confident that greece will not exit the euro. they do feel confident that the greek government will reach an agreement. the worst-case scenario is that maybe we get an agreement -- [indiscernible] you will have the pro-europeans stepping up in the parliament. all in all, political developments from greece, but nothing more than that. jonathan: on the other side is

your world the world of the foreign exchange market. you look at one week euro volatility picking up because the fed is meeting. they have very little to do with greece at the moment. vassilis: that's totally correct. greece is a dark cloud over the euro. at the moment, you have u.s. data dependency and you have the bund. retail sales yesterday out of the u.s. were very strong. we saw some position squaring by a mix of names. just -- [indiscernible] you don't want to see one or two better than estimate releases. you want to see continuation. then, maybe you will see euro-dollar press even more.

the differential remains a very key driver. greek headlines do influence the euro but only on the very short range. you must have a complete agreement or a complete rapture, to see greece really weighing. jonathan: fantastic to have you on the show. seems to be a difference between the way the media in athens presents things and the media in germany. let's check on the markets in athens. we've allowed a little time for price formation. off by 4% this morning. yesterday was the biggest day of grains -- of gains for greek equity since february. we move back down. we closed yesterday before that imf headline. greek markets, a 4% move isn't that much. i'm waiting for a price on greek banks.

the greek bank index of 17.5% yesterday. when i get a price, i will bring it to you. rupert murdoch is set to hand down the ceo title to his son james. we will run you through the details after the break. good morning. ♪

jonathan: good morning and welcome back to "on the move."

let's get you up to speed. zimbabwe will officially remove its local currency from circulation. the move marks the formalization of a system introduced in 2009 to help stem inflation. the central bank will offer five u.s. dollars for every 175 quadrillion zimbabwe dollars. dick costolo stepping down as ceo of twitter. cofounder jack dorsey will return to the role he was pushed out of. costolo's departure will see him leave behind $16 million in stock awards. today, dominic strauss-kahn will learn whether he is found guilty of abrogated -- aggravated pimping charges. they have maintained his innocence from criminal activity, saying he has a right to a private life. 40 minutes into the session, let's get you up to speed. the ftse 100 pulling back in the early hour. the rest still down.

the dax also lower, down by 0.5%. the athens stock exchange, there we are, down 4% after rising 8% yesterday. that market closed just before the imf vented their frustration about the lack of progress and major differences between creditors, the imf, and the greek government. have a look at what is going on in the bond markets. an hour and 40 minutes into trading here in europe. the german 10-year up by just a basis point. a clear divergence across the rest of europe. the italian 10-year up eight basis points. likewise in portugal. selling off a little bit on the periphery. let's lift the lid on the stock indexes in europe and get the big movers with caroline hyde. caroline: the biggest father today is zodiac aerospace the

worst performer on the stoxx 600, down by more than 5%. this is a company that supplies airlines and weaponry flights overall, but this is a company that makes seats so expensive, they cost more than a ferrari seat. they are meant to be destined for the boeing dreamliner. they are taking too long. they need better recliners. they have a glut of demand. meanwhile, they have a strike in texas. the seat issue is taking a bigger toll than the company expected. jpmorgan at the moment saying the future doesn't look rosy. zodiac aerospace down or than 5%. meanwhile, have a look at the green side of things. alstom making up some of the losses we saw yesterday. currently up 2%. this company is being billed it

-- being bid on by the french building company. the european commission is going -- a bid for alstom may harm competition. the european commission say no to general electric's purchase of alstom. analysts say, we are remaining up beat. jpmorgan thinks that a deal with alstom and general electric will get the go-ahead eventually. as long as they selloff certain assets. alstom put out a press statement, saying they might or might not get a rejection from the european union. that would be associated with an investigation that is only phase two of the merger case. overall they are batting away yesterday's report that they might not get the go-ahead and saying and the longer term, this deal will probably be done. sika up 1.8%.

swiss chemicals maker sika many shareholders don't want it to go ahead. they've been embroiled in a bit of a battle when it comes to the courts and they've been denied an appeal. it seems many feel this deal may not go through. jonathan: caroline hyde, thank you very much. let's move it onto 21st century fox. rupert murdoch is set to step down as ceo and hand the title to his son, james. let's bring in bloomberg news mark beech for this story. the significance of this move largely expected? mark: yes, it is. a lot of things have happened setbacks for the murdochs over the years. most recently, the deal with time warner with 80 billion bid

which fell through. rupert is also thinking about his legacy. it is time to bring in some of the family in a bigger way. jonathan: it is his son. what makes james one a part in that? mark: the last son left the company and came back. james has been very much the loyal son, who has been working things. he has been coo of fox for a while. he's the chosen one because he's managed to work well with the shareholders as well. jonathan: you talk about some of the setbacks the companies had. did they overcome those with james? mark: some people say it is moving around the deck chairs on the titanic. this is not true at all. basically, if you look at the overall structure of the company

, it is more the personalities anyway. jonathan: just a quick one, for sky, people in the u.k. thinking, what does this mean for sky? mark: it means, the murdochs have a shareholding in sky. they have to decide what to do. do they keep that? do they of it again? alternatively, do they get rid of it altogether? and of course sky might make content, maybe even vodafone. [indiscernible] there's lots of possibilities. jonathan: mark beech, on top of the story on bloomberg tv. thank you very much for joining us this morning. let's talk autos. fiat chrysler are ceo is looking

at candidates for a merger as the chances with a deal with gm are fading. let's get the latest on this bloomberg scoop from chris in berlin. what are we hearing about marchionne's plans? >> we are hearing that he hasn't quite given up on gm entirely. he has advisors that are canvassing investor interest to see if he can put some consortium together. investors shareholders, that might force mary barra and the management of gm into talks. that is a tough consortium to put together. in the meantime, he is looking for plan b, companies like peugeot in france, and other companies in asia that are also potential targets. suzuki might be an interesting target. the problem is that they are in this tie up with volkswagen that has been in limbo for a long

time. he is looking at lots of options right now. jonathan: how many options are there beyond the obvious? chris: there's only so many carmakers in the world and most think they can do it on their own pretty well. the on gm, you have peugeot, you have companies like honda, or even hyundai, and volkswagen is a name that is thrown into the mix. volkswagen has been very acquisitive in the past. they have 12 brands and those have been accumulated through the years. those are some of the options. you can look at every one and there's pros and cons for them. it is a difficult situation. jonathan: european autos reporter chris reiter joining us from berlin. thank you. as we had to break, we wrap up

the trading week. let's get a market check for you. the ftse 100 down by about 0.3%. the dax down by also 0.3%. we are off session lows. the asc also trading lower. let's switch up the board and bring you the bond markets. bond yields pretty much unchanged. the italian 10-year off by five basis points. the portuguese ten-year also up by six basis points. the euro headed for another week of gains against the dollar. there we are at 1.12. dollar-yen heading for its worst week this year. those kuroda comments really bringing forward some strength. up next in this show, a week it

was. and everything you need to know for the rest of the day. we will rack up the week with the big moves in markets. that is after the break. ♪

jonathan: good morning and welcome back to "on the move." that is almost it for this show. the yen surged this week after bank of japan governor kuroda said the yen is unlikely to

weaken further in real effective terms. the yen is on track for its best week against the dollar in 2015. a policy shift in new zealand sent the new zealand dollar sharply lower. the nation cut its benchmark rate for the first time in four years. we end in greece. investors poured into greek stocks on thursday. the imf announced that there has been little progress in talks and their delegates have bailed out of talks in brussels with major differences remaining. let's get over to mark barton who has been pouring over these markets. we hand off the baton to you. mark: looking at sovereign bond markets, on track for their worst quarter in three decades as measured by the bank of america merrill lynch global government index. the gauge has dropped 2.9%. that is the biggest quarterly

loss since the first quarter of 1987. in these last three months, has any global sovereign bond market posted gains? we've got this wonderful function called the bloomberg world bond indices. you can see all the three-month returns right here. get in here and have a look. treasuries down by 1.1%. these are all the individual bond markets in europe over the last three months. greece falling. they are all down. as any bond market in the world risen over the last three months? you have to drag the screen down and finally there's a bit of green in new zealand. big news yesterday after that surprise rate cut. it is the only global sovereign bond market to post gains in the last three months. it is a piddly gain just 0.22%.

my second question, where is the best return in the world? i had to go to emerging market bonds to the local bond market of the emerging market bond industry. there you have it. the bloomberg russia local sovereign bond index is the best returning bond market in the world in the last three months. it has risen by roughly 13%. nigeria comes in second. its local bond market returning 10%. it got me thinking even more. unusual for me. if i can get a return from russia of roughly 12% in the last three months does anything in any asset class beat that? i've got something for you that's going to blow your mind away. have a look at this chart. this is a company called beijing

technology. in the last three months since it went public, in the last 55 days, i'm not lying, it has risen by 43207%. it is a developer of online video players. it listed at seven chinese renminbi on its open. it closed when the 307.6. this rally is the equivalent to 11 years in gains in apple. it has given it a price-to-earnings ratio 13 times higher than that of alibaba. such a surge like this will have many crying "bubble." it is also emblematic of a shifting attitude among the nation's technology companies towards local capital markets. the industry is dismantling overseas ownership structures to

take advantage of soaring valuations on the domestic stock exchanges and government incentives to list at home. this is surely the asset of the last three months. beijing technology up 4207%. it puts those gains in the russian bond market in the shade. jonathan: mark barton, thank you very much. he will be joining you throughout the morning. francine lacqua coming up on "the pulse" for you. they will be digging deeper into the tech world. they will be talking about oculus teaming up with microsoft. later, bloomberg tv will speak to a member of the saudi royal family. do not miss that interview. as we head to the break, here's a picture of the markets. the ftse 100 down by 0.4%. the dax off by 48 points. have a quick look at the bond markets.

yields a little higher on the spanish 10-year. a shout out to someone on twitter. let me get his name for you -- got that open guess that on. ♪

francine: costolo quits. twitter's ceo steps down. founder jack dorsey relinquishes his role. no more time for gambling. the eu president warns greece that the game is almost up. and, virtual reality is set to become household reality as facebook and microsoft team up to bring the oculus rift to the xbox. welcome to "the pulse