be forced out of the eurozone by the end of next year. 15 seconds away. ftse futures trading pretty flat. dax tutors trading pretty flat. the stoxx 600 on a winning streak. >> what a winning streak. it is the longest winning streak since 2006 in nine years. we are basically flat. the ftse 100 incredibly flat this morning. a little bit of weight and see for the commodities market. lower than $50. we are off by 4/10 of a percent. oil recovering today. let's look at the move we had over the last two days. down we went up more than 3.3%

lower in terms of gold. why? down goes gold. down goes commodities. the u.s. economy is back on track. we have the opportunity of a rate rise. that means the dollar is back involved. we are seeing a selloff across the commodities space. we are seeing borrowing costs coming down across the board. we have italy down 2/10 of a percent. the banks are starting to let the market know they are looking to sell debt. they are raising about five billion euros. companies want to get hold of the optimism in the market now that the greek exit is resolved. or is it? they are down 11%.

we have surveyed economists. a majority think we will see greek exit the eurozone next year. grexit is not completely off the table. let's have a look at some stoxx to watch out for. oil and gas are what to look out for, but also those who came out with earnings. we are getting a flurry of earnings. cloud computing more than doubled. we are seeing it building, and we are seeing profit and sales up. the biggest drugmaker in the world i sales. second quarter profit down. it reports in u.s. dollars. that is going to be a concern. they have also been restructuring this business, offloading and getting that portfolio.

it is all about having to downgrade their forecast for that area of the business. remy cointreau down 3%. the cognac maker starting to see once again i hit of china's slowdown. we are seeing wholesalers more concerned when it comes to that. >> thank you very much. equity markets in the green. if we close today in the green the stoxx 600, that would make it a 10th straight day of gains. that would make quite a run. let's get the rap out of asia with david england. david: we are going for a first this week in asia. a first day of gains across the region. this is how we are shaping up.

it's a fairly good day. keep in mind japan reopening. a very strong session. shanghai looking like a normal market. we have a few weak spots. let me point out what is happening as far as dollar yen is concerned. that weakens throughout our trading session. that is your two-year chart. dollar yen 124.40. we are pushing near 14 year highs. a lot of that has to do with the strong dollar. analysts are saying the downside to the value of the japanese yen is the strong dollar.

we are talking about japan. when i mentioned toshiba that is the company's story for today. that is the two-year chart. look at the big dip last may. we now have more headlines on this accounting probe and regularities. they announced in may they found accounting irregularities. they will be restating some of those earnings. the change at the top came out a few minutes ago. the president and a few other top executives will be stepping down effective today, and come mid-august they will be announcing a new management team . the stock did well. they were trading at fairly depressed levels. let me shift gears a little bit and give you a look at what

happened as far as the commodities space and the spill over. that is asia, a slice and dice. oil and gas we have a sick material. mining stocks feeling the pinch in the drop in commodities. it's not as bad. i should mention a lot of the mining stocks earn their keep in u.s. dollars. as far as fx exposure it still works there way. back to you. john: let's keep it right on commodities. the commodities index dropping to a 13 year low yesterday, weaker even then after the banking meltdown of 2008. let's get more from ryan chilcote. you can take your pick whether it is gold copper, iron ore.

tell me what is driving it lower. ryan: you have to go all the way back to 2007 to see these levels area diameter to pick iron ore. goldman sachs has a story saying china is oversupplied with iron ore. you heard david allude to the strong dollar. it's also fundamentals. iron or they are suffering along with commodities. gold is something still worth talking about. you basically had three pickup trucks worth of gold sold at 2:00 in the morning london time. that prompted a big selloff in gold. then it recovered. today it is back down. gold trading at $1100 an ounce. gold is taking a big hit, trading at five year lows. finally, i have got to mention

oil. this looks like we are maybe moving into an even newer one than we were. the fundamentals people are pointing to is iran. the concern is iran will contribute to the glut we already have in global oil markets. >> let's get the investors take. great to have you with us. the commodities story, the route of the last few weeks. we have got to talk about earnings as well. have a macro discussion to begin with. the central banks are looking to hike quite soon. how does this play into what they would like to do and what they will actually do in the next 12 months? >> i think it is going to hike in september and my belief is

the same. what will happen is it is going to be much more shallow. the next hike comes in spring. i think it will be shallower. when assets get cheaper you have to reassess and think about what is the right time to buy. if you look at the economic picture, there are only for reasons i worry about markets. if the recession is coming they raise rates very quickly. and if the numbers are very high. the only thing that remains is a macro risk picture. other than that, the environment is very be nine. >> we had the chairman talking about the destruction to supply-side fundamentals. are you surprised by the fact

crude is dropping back below $50 a barrel considering the cuts? considering in the year we may see that cut production? >> if it is about liquidity in the market and you have the pendulum swinging, i don't know if that is the case. the numbers are coming much quicker. i have a feeling it is going to come more. i think that is making people worried. no unexpected oil prices to sustain at higher level. in a way it should help the emerging market. >> let's talk about corporate earnings. you talked about picking up the pieces.

considering where things are, do you have to think twice about picking up the pieces? additionally, are some of the dividends under threat? >> some of them may be. they have done a good job of maintaining. you have to start picking stocks in the sector. if you look at financials and health care, you have winners. you're talking about companies with very good profit margin. they have a near monopoly. i will give you an example. if you look at apple, facebook, google, they tried to get into each other's business, but they failed. i think they have near monopolies. if you choose your sectors you should still be ok. >> you and i are going to talk.

for now i want to talk about the oil majors and some of the miners. you love rio. what is going to make you capitulate the position? >> we said let's look at mining stocks once again. i believe there are some fundamental stocks you have to keep in your portfolio. there is one of them. you are not going to build any more bridges. that is not the case. we are seeing a change of sentiment. there is a lot of negative yields. look at canadian dollars. at some point you start hurting. i am not as bullish on china as other people are. i think it will come back. what i heard is the time to correct the correction.

i think it will come and you will have the demand for raw material again. >> coming up, trouble in tech. what will we get from the biggest company today? apple reports after the bell. gold loses its luster. we will speak to the head of the boolean broker. is it a matter of time before the grexit is back on the agenda? the ftse 100 just clinging on to the greek. can we make it a 10 day winning streak on the stoxx 600? maybe. good morning. ♪

>> good morning, and welcome. let's get you up to speed with the top stories this morning. u.s. oil fell below $50 a barrel. gold is trading near a five-year low. the bloomberg commodities indexes pulling to the lowest level since 2002. concern about a slowdown in china continues to weigh. greases creditors are set for an august 6 deadline. yesterday the nation met its debt payment and cleared arrears for the imf as well as the bank of greece. greek financial markets remain

closed. they will only reopen after hurling -- parliament reports a second week in april. currency fluctuation stripped away almost a full percentage point from profit margins at the world's biggest drugmaker by sales. the stock is trading lower by about 2% this morning. time to talk trouble for old tech. the toshiba president announced his resignation after an accounting scandal. at ibm they reported a 13th straight quarter of falling revenue. here to wrap it up is caroline hyde. let's try to break down that story. >> this is a pillar of japan inc.. yes, it is technology, tvs, laptops, computers, and the

like. this is a company that builds nuclear reactor or us that have power plants up its sleeve, and now it wears the crown of one of the biggest accounting scandals in corporate history. it is all about having to review six years of earnings. today the breaking news is that had will roll. this out to knock a -- hisao tanaka has quit and to others. the third-party investigation really lifting the lid on what has been going on. unachievable profit goals. this is the struggling company desperate to hit targets and impose it on their workers. they thought to delay losses and workers were unable to go against management.

systemic is what they call it. clearly, this is a concern. we have seen billions wiped off from the value of this company since may 8. it is set to continue, leaking out the extent of the damage. we get numbers from the company at the end of august and the new management team. >> i am looking at ibm numbers. the prophet is ok. we know the reason for that. they managed to beat the low bar. i have the stock down almost 5%. what is the story with ibm right now? >> they have been trying to rekindle this juggernaut. it has not been keeping up. they have not been able to play catch-up, particularly when it comes to cloud computing. microsoft, amazon, these

companies are getting in there. everybody is very excited about amazon web services. the infrastructure they provide for businesses. ibm used to be what they did. they provided us with programs installed on computers, with the hardware, the software the services, and you are seeing declines in all revenue streams of the business. 13% the klein in sales. 13 straight quarters of declining sales. yes, they make savings. revenue is looking pretty dire. at the moment are not able to shift the company's future to show off what they can do in terms of cloud computing. they have managed to make 27% of the business from the cloud. it's not enough to offset weakening deterioration. the european angle for you.

they are able to keep up. they suddenly have to play massive amounts of catch-up compared to some of the new kids on the block sales force. growth in sales is up 20%. cloud subscriptions more than doubled. the target has quit drew pulled the revenues they get from cloud subscription. you and i want to be able to access the software that they make easy for their clients. when you're on a tablet or a smart phone, they are having to offer their software online and it is building but it seems there is a bit of concern about restructuring costs. >> i will take your word for it. a huge day for tech earnings in

the u.s. later we will get earnings from apple and microsoft. we are joined by paul sweeney. still with us the head of investment. nice to have you in town. apple earnings the darling of the tech sector. all about the smartphones and how much attention i should be paying to the apple watch. >> this is a big earnings number. investors are clearly discounting some pretty good numbers. it is still all about the phone. looking at 50 million units. it is the highest margin product on the platform. that clearly drive the bus. people want to start taking a look at the watch business. it is a small part of the business.

they are looking at the next product. i think it's kind of early on at this stage. apple is going to lead the way probably. >> i can tell you the story over the last seven or eight years. you set they're saying, we need a new product line. smart phone sales kept going through the roof. do they really need the apple watch to succeed? >> i would say with the iphone i am really happy with the numbers. the cycle is a multiyear process. of course they will come with success. apple will come with success as well. i am not looking at the apple watch numbers.

it is an exporter, but i am happy with the other things apple is doing. it is a tremendous company. you are delivering 50% growth in sales year on year. you still see the stock is trading much lower. i love the stock. >> we had a situation where we were within $.40 of a correction on apple's stock. when you look at the likes of google where they need to talk up raining in cost, can apple do any more on that side of things, returning cash to investors, cutting costs? is there anything they could do with the balance sheet on that side of things? >> i think there is. they have made an effort. google has not done anything with their cash.

if you are apple i think they are very much in a topline growth story. they are in a new product development story. google as well continues to put up great topline numbers, but the growth is slowing. consumers move from the desktop to the mobile business. the growth is slowing, so they had to show they were going to look at expenses. the new cfo won a lot of friends talking about bringing costs in line. >> he looked all right. when i look at the nasdaq at a record high and you get a knee-jerk reaction but we are talking about google doing all kinds of thinking, and then we talk about netflix going forward. how do you make a decision about which stocks? ask i don't look for tech stocks in europe.

as i mentioned before the break you're looking at market leaders. you're looking at google facebook. let's not forget amazon and apple. i look at the leaders and the sectors they are leaning in. it hasn't worked. they maintain profit margins. i go with market leaders. >> there are some challenges. >> there are some challenges. to the extent they can spin that off management has done its job. you have to look at the core business at some point. the pressure is really building on marissa mayer. >> paul sweeney will be here tomorrow to break down the numbers. we will make good use of him

while he is in london. thank you for joining us this morning. even with prices at the lowest since 2010, investors have been piling into options to sell gold. we will ask a leading bully and provider where does it go next. join us after the break. ♪ and when should have to caption for more than is is not good i just up drying and will she's cute you get to see in the that

baby .

♪ ♪ ♪ get excited for the 1989 world tour with exclusive behind the scenes footage all of taylor swift's music videos interviews, and more. xfinity is the destination for all things taylor swift.

jonathan: good morning and welcome back to "on the move." i am jonathan ferro. we are 30 minutes into the trading day. a picture of the equities markets. the ftse 100 slipping into the red. the dax clinging onto gains. much of europe on a nine-day winning streak on the stoxx 600, the longest run since april of this year. quite a run. switch of the boards. the big headlines in commodities. oil getting absolutely slammed. 56 bucks a barrel. combing back a little bit of

0.1%. the bloomberg commodity at a low. the stronger dollar is the story. your role buying one dollar .08. does 1.08. some of the index. caroline: how the minors at the oil stocks the basic resources are doing today. i want to show you a picture. a bit of a pickup in gold stocks. as you see on my screen, some the best performance on the basic resources on the stoxx 600. a little move over the past six months. down 30% over the last six months. higher on the day because we are seeing gold prices recover slightly. your gold price of about one percentage point. that's rebound helping fueling

for the likes this morning. the overall trend has been downward. all about the dollar store and in the u.s. economy doing better. -- the dollar strength and the u.s. economy doing better. we will see how we fair the rest of the morning. much more to discuss. jonathan: caroline hyde, thank you. more on gold. joined by russ norman. a london-based bully a broker who provides physical gold bars. great to have you. i go back to yesterday that is where i want to begin and when we talk about something falling and that is what happened overnight and the trading session. we are scratching our heads why did it happen? what was driving gold it down. -- driving gold down? russ norman: a quick 33 ton

hit the gold market. s22 tons sold on the overnight. 9:30 p.m. on a sunday so gold was hit i-55 tons. -- by 55 terms. if you are doing a rate, and size with speed they been successful. jonathan: one of the reasons and the other is could it have 10 a selling position? liquidity not there and you would not want us tell if you are trying to leave voluntarily. after that point, cover something. isn't that a possibility? ross norman: you choose massive liquidity. the trading date, if you are a server, you wait for it to emerge in europe and other parts and whatnot gets the best price.

and we saw that. it triggered the stops and accelerated the move lower which picked up impact. jonathan: hard to be bullish right now. give us a reason. ross norman: what you can say is you have given through some of the points. the dollar range with the interest rate rises putting it against other interest on assets. the point is it is all in the price. investors are buying gold well below the cost of production. your entry point is low. though a point of markets, as they move on things you do not know tomorrow. i cannot believe there is anybody holding a gold position. short of the telegraphic news of the decade. a lot of the bad news and the price, gold is under the ropes. i expect another bear rate toe push the market down toward 1080

and perhaps lower 1000. they will keep watching it until it stops moving. the bulls make their case, quite like the 1990's when he hit a 21 year low and was flatlining and the bears were hitting it. into the 2000 gold saw an increase. i do not think we're on the cusp of it. it was a series of initiatives man-made, if you like. the shanghai gold exchange and removal of vat from gold which accelerated and became priced in. the moment gold is priced, buying opportunity and rally and sold in 2. hard to be lasted. jonathan: the there's are spanking of the market the lower. my question is, who in their right minds would want to be

polish given -- bullish given it was not a fed rate hike and the second part was about cutting rates again and again? the ecb doing qe. for me, if i wanted to buy gold everyone is under the sun was for go to push higher and it did not. ross norman: remember -- not everybody is an american and you are looking at gold in u.s. dollars. the dollar index is up 8% and you can understand that. gold is actually of this year. russian clients. gold has risen by 80% in 12 months. 8-0. european clients saw a rise in argentinians saw it. gold does what it needs to do for those who need it. it has been hit and is weak. outside of the u.s., most of the gold market, the u.s. is less

significant. the jonathan: china, we have to talk about china. we are waiting for the gold reserves. people many people, the estimates expecting triple. what does the story in china? ross norman: bloomberg intelligence among those who estimated 3800 tons. i suspect china has larger reserves and then reporting and maybe in other institutions like of the cic or a safe. why would they underreport is the key question. october is an important time when the u.n., the chinese currency because -- part of the international reserves. they want to join that but it is not want to look too good. it does not want to their currency as it is comfortable

not to look too good. it to damages production and domestically weaken itself. it was a place at the top table but not the damage is economic position powerhouse bring jonathan: i what not want to buy gold on the conspiracy a repeat. what if the number is just a number. -- what is the number is just a number? ross norman: it could be. it is neutral already. since 2009 when china last reported its reserves, they have produced 2000 tons of gold. they have imported 3300 tons into hong kong and other bits and pieces. the market has assumed half is gone to domestic production and the other two the banks. what it tells us is domestic demand as far higher than estimated and the central-bank reserve is quite bullish.

if china only has 1600 tons considerable to catch up with americans with 8000 tons. jonathan: always a reason to be bullish. i want to finish on a hedging. what is the point of hedging? on the way back down, you have to inc. about it. when you look at some of the gold miners do they have to think about getting the to the market and hedging? ross norman: they want exposure. that is the upside. we talked about that a bear rate earlier. not a victimless area the mining shares, 8 billion wiped off of their shares. in the longer run the story perhaps, consolidation within the mining sector is fragmented. because they do overproduce irrespective of the gold price. because there is no price which

role within the them because they are a fragmented group. if we saw contraction, that is the key point. in the longer run, the story is positive. jonathan: ross norman thank you for joining us. polish gold. dollar strength causing headaches for the commodity market and hitting the world's largest drugmaker, novartis down by 2%. more on that after the break. ♪

jonathan: good morning and welcome back to bloomberg tv. toshiba president and two other executives quit to take responsibility for a $1.2 billion accounting scandal after a third order were port showing unrealistic targets. toshiba had to reshape their earnings for six years. greece's creditors weighing a deadline for a new bail out to disperse the first of aid. they met an ecb debt repayment yesterday. greek markets are closed today. two greek officials said they would only reopen after proposals on wednesday. novartis reported a decline after the u.s. dollar erode sal es.

almost 14 percentage point at the biggest drugmaker by sales. the stock traded lower by 2% in this morning. for more on novartis joined by director of research at bloomberg intelligence. samuel, take us by the numbers. i see it in the ibm as well. take me through the results. samuel: sales came in and we have to look at from profit side. sells with 11% of u.s. dollar strength and 6% rise in currency. and the operating profit rose pretty nicely. the dollar impact was the same almost as we saw in the first quarter. not a new issue are further strengthening of the dollar impacting them. the reality is the same. on profit and sales.

jonathan: novartis earnings and viewers will be tanking when you look at the novartis numbers and talking about elsewhere, is a happening? sam fazeli: we do not talk about the discontinued operations. they sold a couple of business units or merged one and sold want to glaxo and to the animal health business. and those discontinued businesses had a negative operating result this particular quarter. which i think, all day they split -- although they split, parts of glaxo having the issues they had which is why novartis sold to them. difficult to make money. hopefully, glaxo can merge the immunization into there's. and the consumer business should hopefully be better. a better presence.

jonathan: other business, the eye unit. what is happening? sam fazeli: what will seen before. a number of business lies in that unit. a demographic unit because as we age, we require i care, -- eye care in a variety of forms. lenses, which have been around for a number years, has been a problem area before and has come back. if this particular quarter, their operating margin fell by 5% to 31%. the point is i am worried it will drag on the company's efforts to improve margins by selling low-margin businesses to companies like glaxo and change the way they purchase services unit.

what i think we will have to look out for is margins do not get squeezed too hard, draghi the all of the other businesses. jonathan: outside of novartis, a much bigger picture for the earnings season, what to look for? the fx impact or something more fundamental? sam fazeli: fx impact is something we know is there and nothing we can do about it. this is do the best they can head. as we saw with the novartis, the same in the first quarter. with the lookout for divisional performances such as this is specifically how well the companies are doing with new product launches. pricing pressure is always a question in europe and u.s. and we need to see those drugs doing well. that is the key tell focus on. new drugs launched and will the guys be able to reap the awards in the current pricing

environment? jonathan: sam fazeli will be breaking down the final results. thank you for joining us. 48 minutes into the session and an update of where the markets are trading. we opened greene after nine days of gains and now read. the ftse 100 up my 0.2%. energy makers almost 1/5 of the index. some concerns. the pullback. no drama in equities. switch up the boards and a quick look at commodities. gold, 2010 low yesterday and we come back by 0.9%. wti dipping below zero -- 50 bucks and now up. a 2002 low. a lot to discuss. relief for greece. is is a matter of time before grexit is on the agendas? according to our survey, most

economists think so. after the break. ♪

jonathan: good morning and welcome to bloomberg tv. i am jonathan ferro. things may have turned for greece after getting in eu loan and met the ecb payment. according to a bloomberg survey of economists more than 70% believe grexit will be back on

the agenda by the end of 2016. let's speak to niklos. i love greece and the greek people and people are tired of the grexit. we'll be talking about it for a while. is that what you think? nikos: most economists believe that greece is not out of the woods yet. after five years and 2 bail out and 40 billion euros in emergency commitments from the euro area and international monetary fund, there is still no way out of the -- for the greek economy. most economists believe we may see a grexit as soon as next year. economists doubt whether the new bail out package, that greece negotiated worth 80 billion euros, is big enough to leave

greece out of the woods. whether greece can fulfill the conditions of that new bail out including the requirement to sell 50 billion euros worth of assets and they doubt the impact of new austerity measures to greece's depressed economy. jonathan: i am reminded of a quote from the eurasian chief who said "i will love to say i would talk about greg's in a few years but i could be doing to in a few -- grexit in a few years of but i can be doing it in a few months." what are the big obstacles for greece? nikos chrysoloras: as always, political stability. crews -- degrees anti-bailout government -- greece's anti-bail out government may have done a u-turn but lost a majority. you have bail out being approved

by the greek parliament. this support is not unconditional. and the greek prime minister may face even more defections in the week ahead especially as he will have to implement more tax hikes , especially for greek farmers and more fiscal consolidation measures. these may lead to more defections from his party and new snap elections. if we see a new snap election in greece as early as september, these made the rail bail out -- derail bail out talks and we would be back to square one. jonathan: great have you with us. nikos chrysoloras athens bureau chief joining us out of athens. if you want the full breakdown of the survey, i've tweeted it. coming up is "the pulse" and

joined by manus cranny. what a day for technology? yahoo!, microsoft and the beast that is apple. manus: the beast is all i can say. 80% undervalued. we have one of our bloomberg intelligence guys. he will help us preview some of these beasts for apple and the iphone a yahoo! with a huge day with i paid yesterday and microsoft. what does the future of cloud? who will make it in that space? paul will join us. and how the scorecard is. jonathan: 24 hours for commodities. what a 24 hours for commodities. forget the 2008 crisis a eurozone crisis. manus: a huge story. i was telling the story

yesterday and why we both had called gate. i like the title of his paper. they have a crystal ball. there is a quote and i know you will know it. "to me because this is seems of abandoning all believes and principles and values in search of something no one believes. but to which no one objects. what would be won under the banner." what do you think set that? -- said that? jonathan: the greek finance minister? manus: margaret thatcher. you have to state-owned for "the pulse." jonathan: coming up in about 3.5 minutes' time. that is it for me. red across mayland europe --

mainland europe after a nine-day winning streak. you can talk about twitter@ferrotv. best of luck for the rest of your day. ♪

manus: commodity crunch deepens as wti crude slides below $80 a barrel and gold near a five year low. trouble. tissue but -- tissue but chairman steps down. -- toshiba chairman steps down. and greg's it is going -- grexit is going nowhere. 70% of responders in a bloomberg survey thinks there's a danger that of the country will be out of the eurozone by the end of next year.