wereuropean equity markets set to a positive start to the trading day. let's get to caroline hyde. caroline: good morning. lower with three days of losses on the stoxx 600. we lost 200 billion euros in market value. we could eat up a little bit more. the 5100 is opening in the cac 40.ike the ca diddggdp shows growth, as consumer spending. consumer spending data was released one day early. this gives hope for global growth and a rebound for oil. we are up more than one percentage point for cac 40.

we saw a rally in asia and the u.s. yesterday. crude oil pushed up higher than one percentage point. there is hope that the commodities market can start to lift from its lows. copper and metals are up 9/10 of 1%. the u.k. gdp will come out later today. that is pushing a little bit higher. we are close to near eight month lows when it comes to the pound. we have had a downward trajectory for the pound to the dollar this year. let's look at the stocks. they were interesting mma stories this morning. /2 1%.ta pushes up 1

mittal is up 3%. look out for steel producers. thank you, caroline. hong kong for a look at the asian session. nejra: we're still looking for that santa claus rally in asia. we some modest gains across the board. it was really this holiday themed volume we have seen across the region. take a look at sydney stocks. by one half of 1%.

traders have already taken off for the holidays. mainlandomes to markets, we thought a little bit of a dip. we had some honest gains. let's take a look at the chinese financial shares in hong kong. they searched quite a bit in the day session. this is on account of the securities brokerage that had a ceo vanish a few days back. he has now been found and will return to work and resume his duties, according to the company. that gave a sense of a rally. been one of the worst-performing sectors and are analysts say they oversold. aussi stomes to the

cks, we saw a recovery. rio tinto was up over 4%. iron prices are picking up a little bit in the overnight session. we are starting to get that sense of holidays coming on. that is what is happening in the markets. here's what is happening in the show. the commodity crunch. oilr a rocky year for the miners, we have a light at the end of the tunnel. then nikecerns and outruns a china slowdown. let's talk about these commodities. the world needs to get used to cheap chinese steel as the world's biggest

producer adjusts to demands. programlcome to the fabian lloyd. still with us, richard hunter. we have a busy conversation around the desk. out 2016, if you could. you see the major metals remaining load their 10 year norms in 2016. >> it is not very christmasy. the chinese situation, the slowdown, has impacted steel and the base metals absolutely. we're looking for for prices next year to be on average, lower than the 2015 average. we see some higher prices.

the market is in a oversupply. copper, zinc, and nickel are raising. we like zinc the best. anna: it is hard to work out what the biggest surprise was in 2015. it was an eventful year for commodities. >> i think the biggest surprise was oil at the beginning of the year because we have an 11 year low. i think the biggest surprise was keptact that opec not only producing, but saudi arabia increased production significantly. that cut into the market in terms of volume of production. that is what has prices significantly lower. anna: i know you are focused on

the metal prices, vivian. do you see any reason for that to change in 2016, the role that playing? been flyin >> we have not had any positive signals from opec and that is what we have been looking for. you would see a followthrough to the other commodities if oil diwas doing better. anna: it has been very easy to focus on the negatives. many businesses have struggled. it is a positive side, and that has been the consumer spending. we were looking at a chart of consumer spending in at u.s. and it was very positive. are you playing for that upside anywhere? are you looking for a stronger consumer to reflect this week are oil price? >> there may be easier places to

look in 2016. if some companies are deciding that current oil levels are not viable to carry on production themselves, that is one of the few ways you could see the glut demand, buty that is a longer-term story. oil could be best avoided in the short term. anna: some are betting on the price of oil going even lower. there is a risk that oil could get to $20. >> this would force some production costs down. winter inve this mild the northern hemisphere.

create anbly will extraordinary glut that requires lower prices. investors have to play that possible scenario. prices could go to $30, $25, or $20. 15% of thebe another drop in oil prices. i frankly, don't see it but that is the beauty of minority investors. anna: we were talking in the last hour about the least loved commodities of the year. seems to be the one you were suggesting. will that continue? >> it is very much impacted by the chinese construction sector. we expect further contraction next year. we have seen steel demand fall and we see that continuing this

year and next year. that will hit iorron ore. there have been a few production hurtthat hvaave production. the ironhard, some of ore majors are listed in london. there is some london exposure here. they only think three producers are making any money at these current levels. is that another sector to stay clear of? >> yes, as your guest was saying there are certain metals that are off to one side and almost not impacted. dollarhe strength of the and the general production difficulties we are hearing

about, it could be a while yet before the mining sector starts to see anything like the previous levels. anna: that is a niche story. this conversation is not very christmasy. are there any bright spots ahead? >> the biggest bright spot has been chocolate, cocaoa. cocoa prices will continue to rally into 2016. we can see prices around the highest in five years. all of this is due to bad weather in west africa, where a lot of the cocoa production comes from. that is a potential -- i don't know if that is a positive. anna: that is a scandal. this ae uyou call positive, considering my annual and seasonal consumption.

thank you, richard. javier, thank you. and vivian lloyd, thank you. up next, we're going to talk drugs. a mega merger. we look at what to expect in 2016. ♪

anna: welcome back, you are watching "on the move."

europe's largest oil company has reduced prices. world outlook at 10:00 a.m. u.k. time. the hedge fund manager majority-owned by carlyle group $150 million of withdrawal requests. after defiedose concerns about china's slowing growth. revenue in china was up 24% to almost $1 billion. anna? anna: it has been a turbulent year for big pharma. stocks outperformed markets on both sides of the atlantic. let's look at how health care

will fare in 2016. good morning. of just how much of performance we saw on both sides of the atlantic. >> this is all in u.s. dollars. y, we got a couple of percentage points for each of forcesopean and u.s., the bigger and broader embassies, such as the stoxx 600 for europe and the s&p for the u.s.. that has been driven, it has not been uniform across the sectors. downd companies in europe 6.6%. down 5.6%., we have had companies that have not done so well share price- wise, but they have been outweighed by the big games.

-- the big gains. anna: we have a big range from the negative to that kind of increase. which is stocks are you excited about? >> the way i look at that is to look and see who has the most interesting or potentially volatility inducing news. the top of that chart for europe reports for next year. anna: diabetes, it did really well this year. things we needo to be aware of when we look at diabetes. prices are becoming harder to keep putting up. it has been a big driver. and the other hand, we have these outcome trials. they are testing their drugs in

a large number of patients to see if they can reduce heart disease. if they do that, there is a significant potential for these drugs to become more broadly used. what are you looking for from the pharmaceutical sector? we were talking about some of the big gains have been driven by mma and the positive trial results. you mentioned china. one of the things that has made the pharmaceutical sector less like recent years is it is only a- il a few ofime unt those start popping through. .nvestors are being paid

anna: you mentioned one of the big areas you are looking at in big pharma is cancer drugs. keyhey are one of the players in this space, oncology, where companies are trying to get the cancer cells to be less and visible in the system of the patient so they can be recognized and attacked. this will be a very interesting year. the next few years will be interesting for oncology. we can see who is in the lead. we have clearly is out there with big numbers. already, billions of dollars with potential sales. bristol-myers has the new drug. those dynamics will be quite interesting to watch, as to whose drug is better.

everybody expects them to be pretty much the same, but life does not work like that. which combinations will work better for what cancer. there are a lot of things to work out and men interesting dynamics. anna: this is something big pharma can play at. >> there are two reasons for that. they innovated and for at the forefront of that. some of the drugs came from the acquisition. the same could be said for bristol-myers. it was a long time ago when they bought the biotech company that gave them some of these drugs. what is also interesting is the permutations of the combination of drugs.

the number and type of tumors requires a large pool of testing. anna: thank you for joining us this morning. next, credit concerns claim another victim. we look at the debt trades that obliterated bonuses in 2015. ♪

anna: welcome back to "on the

move." the hedge funds owned by the carlyle group are said to have $1 billion worth of withdrawal request. the credit oriented fund has performed poorly. simon bellard is here. what went wrong here? simon: there is a continuation of the story we had a few weeks ago with 3rd avenue in terms of the unwind of some of the chasing incremental yield traits over the last couple years. fedperfect storm of the moving into a tightening cycle with the first 25 basis points. the decline of the commodity has pushed the parameters of risk tolerance into some of these relatedlding energy sectors. a number of these funds have put up gates to slow. numbers of investors try to take

their capital out, which leads to a defensive type sector. anna: this is a story with a long tale. people have been expressing concern about this. simon: increasingly, people have recognized that at some point it might become uncomfortable. there has always been the assumption of the backstop with central banks. we've got into the first stages with the fed taking the punch bowl away. thee is that unwind of quality curve in a high-yield cycle. investors can hit their yield target. you are starting to see a little bit of this unwind, coupled with the decline of energy prices. anna: you mentioned some of the other businesses that have been caught up in this. as those names started to filter through into the broader market, 3rd avenue was one of them, it seemed to everyone that many

people in the sector were trying to figure out how those businesses for different than the rest. is that what we see now? simon: there is a much more idiosyncratic approach to risk and that will continue. touristshese yield being pushed into assets. because it offered the incremental yield they needed, they put their capital to work. they were told that they traded funds that would trade liquidity in times of stress. we have seen prices decline and that liquidity has disappeared, which exacerbated the price we have seen. stress is picked up and the liquidity has not been there for them to get out. anna: simon, thank you for joining us. simon bellard joining us with a look at the credit markets. up next, we will find out how nike has managed to stay a step ahead of its rivals.

now.26 in london we will take a short break. ♪

anna: welcome back. ."u are watching "on the move we are up 1.5% on the ftse 100. you can see the picture is not much different with 1.8% higher. let's check in on foreign exchange and oil markets. there is a lot of focus on the parity between brent and amex. nymex. nymex has gained ground on

brent. as a result of a change in policy and the united states that is. the euro-dollar is 1.096. the euro surged at the beginning of december on the back of the ecb move. let's get to the top stories this morning. caroline hyde has been watching some of the movers. caroline: oil stock miners are leading the charge. arcelormittal is up 5.83%. 256% taxis proposing a on some imports of chinese steel. the reason is many of these companies in the u.s. have been claiming that they have been dumped upon in terms of cheap imports coming in from china and taiwan.iliadaly, korea, and

the u.s. is potentially a huge tax hike on certain chinese producers. this is really helping some of the steel producers in europe. adidas is doing well and on the upper because of nike. nike's numbers arm pressing overnight with 20% increase in profit and 4% increase in sales. they are posting a 24% increase in sales in china. on the down, check out this move. it is a small stock trading in the united kingdom. many used to buy their gaming equipment with it. game digital is down by 37%.

they are warning of a profit concerned just as we start to expect sales to go through the roof because it is christmas time. the company has had disappointing sales. they forecast the first half of profit down 30%, versus last year. back to you. anna: thank you, caroline. a look at some of the movers this morning. tradingres rose in after it delivered good news to the u.s. retail sector. 24%, toin china was up almost $1 billion. nejra cehic has the story. o raises managed t sales in a difficult market. the nike we look at

brands for the next four months, they rose 20%. sales rose 4%. that was a slight miss. revenue was up 24% in china. part of the reason for the success in that region is over the past two years. they have been revamping their distribution and merchandise. they have been selling more profits through their own stores and websites. that is part of a companywide strategy. raise a saless to to $50 billion, with a focus on women's sales. north america also had a strong performance. eighth, we have seen an consecutive quarter of double-digit growth for nike. anna: nike has been on the upswing.

nejra: it has had a number of successes. itsas been increasing presence and markets like china and south america. but also, nike has benefited from a shift in trends towards athletic and casual wear. means is that nike shares are up 37% this year. andas is outperforming it performing at 50% this year. they are coming from a fairly low base. what is important with nike is the trainer and sneaker side of things. this is a big part of its sales. many people attribute the nike success to sneakers. you may have seen josh luber. he runs a company that collects data about the sneaker market and analyzes it for collectors

and investors. listen to what he had to say. josh: if you had invested in air jordan in 2011, you could either be wearing them on stage or have on your money. double the s&p and 20% more than apple. that is why we are talking about sneakers. anna: that is some pretty staggering data. although there are others that say the air jordan bubbles have burst. trendthe at leisure never to be seen in the on air wardrobe. we're joined from frankfurt. it has been a big year for d eals, mma amongst them. august the the highlights from this -- talk us through the

highlights from this year. lines of the year were from the pharma states. we had a huge transaction, partially tax motivated. an inversion step we have seen before this year. the purchase of smb was the other juggernaut. these deals we have been expecting to happen are finally taking place. anna: what does this tell us about next year, aaron? if is history tell us this means this push higher and m and a we ar&a. in 2002 and 2007, there

was always a correction. if you are talking to a bankers executive, they would agree. it is unlikely we will see the pace of make a deals. -- pace of mega deals. we don't think next year will match that pace in terms of the big, mega deals. anna: what are the risk of these trends not materializing? this trend towards m&a begets more m&a. aaron: we have seen a number of combinations. that is going to lead to asset sales because regulators are taking a very close look at these deals and that will create other deals. we have seen trancelike activism in the u.s. coming over to europe. in the smallerre

space. small is relative. we are talking $5 billion or $10 billion, rather than the $20 billion. this will be interesting for areas that we have not see much action in, like oil. the pressure on those players to consolidate will only increase going forward. anna: thank you, aaron. seems to still be doing quite nicely out of this. they rise on $1.4 trillion. there were 37,000 deals in 2015. roughly one for every employ ee of the goldman sachs group. the indian prime minister arrives in russia today for a two day visit. what is he hoping to achieve? ♪

anna: welcome back to "on the move." decent -- 100 takes a the ftse 100 takes a decent move this morning. the euro stocks are up. the stoxx 600 ended up is up

51.6%. utilities are up by 1.9%. health care is also another by sector.ector -- laggard let's get your bloomberg business flash. nejra: pesticides companies and jetta is in advanced -- syngentas company i cedin advanced discussions with cam china. -- with chem china. the chairman and ceo will resume his duties. the stock previously plunged following the firm's announcement that it had lost contact with him

rare good news for the u.s. retail sector. revenue in china was up 24% with nike to almost $1 billion. he faces charges of money laundering and racketeering. kim dotcom will have to answer to a case. anna: thank you very much. the indian prime minister begins visit after approving an arms deal. we are joined in moscow. what are they hoping to achieve from this visit? short of a warm w elcome from putin, it is the

return visit to the one putin made last december when they discussed oil, nuclear power, and weapons. the agenda is the same here. they have a take weapons deal on the table. aponsey have a big we deal on the table. this is an indicator of the importance of the defense relationship. anna: our russia and india looking to develop closer ties here? explain to us the nature of the ties between these countries. came to: they both expand and broaden trade. to triple trait levels to something like -- they hope to levels to something like $50 billion. india has become an important

market for russia. last year, they discussed oil as well as nuclear power projects. those are on the table again. russia as an important source of energy and weapons. russia sees india as an important market to fight pressure from the west. anna: it does sound as if there is something in it for each of them. reporter: russia has been tilting toward asia and the east to strengthen its relationship with china in energy terms. it has long been india's most important defense partner going back 50-60 years. they are facing competition from the u.s., france, and israel.

it is important for russia to cement that relationship. defense will be at the heart of the discussions that modi and putin have today. they have an informal dinner tonight to cement the relationship. anna: thank you, tony. up next, we have rough data out from the oil sector. we will take you through everything you need to watch for the rest of your trading day. let's have a look at new york as it wakes up for the trading day. u.s. had a good day yesterday, up 0.6%. consumer spending data comes through quite strongly. it increased the most in three months. the consumer spending vibe continues to pick up momentum with the weaker oil prices.

that is the picture we expect to see from the u.s. for their trading day. ♪

anna: welcome back. this is "on the move." this is a live look at london. is up by 1.2%. we have seen this echoed across

the other european markets. the stoxx 600 is up by 1.4%. we have firmer oil prices and firmer commodity prices. that has been helping the miners . the energy sector is also up a little bit by 1.9%. brentternational benchmark has been higher in the early part of the trading day. the stock 600 utilities is up by 1.8%. by stoxx 600 telecom is up 1.6% as well. are a few of the things we are watching out for today. a busy day for oil. we've look attime the opec outlook.

elsewhere, we will get a reading of gdp data. and then, mortgage applications. u.k., ahead of the final gdp reading, economists believe the referendum on eu membership will be the biggest threat to u.k. growth. 13% say growth will suffer and the buildup to the referendum. others suggest brexit is the biggest growth risk in 2016. good morning, brexit is the biggest concern then. this is not just a survey in the u.k.. it is across europe. >> we did not think it would be so overwhelmingly focused on brexit to the exclusion of things that you thought would be a big concern. the fed did not even get a

mention. anna: no mention? all the airtime dedicated to certain focal candidates doesn't seem to be showing up in this research. surprised by this, richard? > gainingt is slowly traction. it is quickly becoming front and center as the timeline gets shorter. they could be that we have the referendum sometime next year. interesting was the second ranking think far behind brexit is a concern about slow level growth. -- slow global growth. that weighs on the mind of the ecb and european policy makers.

it could throw a monkey wrench into the u.s. story next year. we have thoughts about when rates will go higher in the u.k. it is far out, the expectation in the market. >> it is a still an early 2017 story. there is a chance of getting a rate rise in november of next year, but it is 80%. as the bank of england is concerned, all of our talk this year is the relationship between the forecast for a rate increase and the inflation outlook. the bank has always been forecasting a pickup around the corner. i expect we will see this next year, people starting to turn their attention to the timing of the brexit vote.

we saw this with the scottish referendum. uncertaintyloser, built up and it became harder to see how you can move from record low interest rates and tighten policy. there was this big election coming. anna: why is it such a dominant issue, then? our economists worried about brexit itself? or are they worried about what happens during the campaigns, regardless of the outcome? >> look at it from the perspective of a foreign n investor. there is this boat coming that will do who knows what with the biggest trading partner. that is leaving aside the impact on the pound. not sure what that will do to sentiment. with all of these things up in the air, if you are a foreign investor, you might want to wait a little bit before you make

your move and invest into the u.k. anna: does that mean this stories starts way ahead of the actual date. in scotland, the market did not focus on the scottish independence vote for a few weeks. all of a sudden, everybody only wanted to talk about that. that was the only thing the pound was hooke dud up to. do you expect something similar to happen here? >> anytime the stakes are high, it becomes a big issue for investors. there has been some polling done already and it seems to me, quite tight. when the stakes are high and a tight result is forecast, it will lead to uncertainty in markets. anna: thank you for turning us. -- thank you for joining us. "the pulse" is up next and stocks in europe are higher this

morning. do it for "on the move" for today. that is a shot of london. ♪

guy: low for longer. opec gives its global outlook in an hours time. credit suisse claims another victim as a hedge fund faces almost $1 billion in withdrawal requests. and, the world's biggest sporting-goods maker beats as it reports a 24% revenue surge in the country. welcome to "the pulse."