>> global stocks buckle from japan to brazil. capitulation or more pain to come. >> daily swings the ax. barclays is set to cut more than 1,000 jobs at its investment bank. >> the shares of the electronics maker climb as they offer $5 billion for the struggling business. >> how will the oil price play into this afternoon's rate ecision.

welcome. >> a warm welcome to the break. it's 6:00 in the morning in london, 7:00 if you're watching. let's talk about the global markets. in asia, a little more mixed in terms of equities and other risk assets if we can call them that. sadly the story of the last 24 hours, how many markets are in bad territory. >> it is my favorite word, the fragile 40, we expand the equity markets to the fragile 40, china, the u.k., canada, to maim in the 40 club. we look at 63 global equity markets around the world, $27 trillion locked up in bear markets, 40 are in bear territory. 19 equity markets that have slipped between 10% and 20%. that's a correction. the bears have it for the moment. the fragile 40, who expected we would expand it this far.

>> big names are talking about whether it's the end or more to come. we have had comments, they expect a protracted in the s&p 500, bounce back rally, guggenheim partners talking about 20% or month and oil at $20. let's check in what is happening with the oil price and some of the commodities. this has been the center of so much volatility. >> last night, a quarter of 1% this morning, the balance will improve in 2017 say d and b. more m n.a. in the offshore business. a lot lower for a lot longer. >> that's the new phrase. i'm not sure anyone is making that choice now. let's look at things like the

yen and the treasury market as well to talk about what is happening there. the yen actually a little bit weaker in the early part of this session, speculation about more easing from the d.o.j. >> the whole view is what happens next. he could have done a little bit more to give the market a bit. no ave done a survey, foreseeable future. >> plenty of news to come from davos throughout the day. day two unfolds in davos. john joins us from there. plenty more news coming from the banking sector. you are talking to some big guests from the banking sector. we have heard about barclays nd their plans to exit certain parts in the asian business, a lot going on? john: the markets are incredibly detached from the tone here at davos, the calm

measured tone of chief executives here. you wonder which is wrong and right. at some point, that market reaction, a protracted can become real. it feeds back into the economy and you wonder what chief executives think about that. as for the banking sector, the story is we were told in italy we would get the consolidation. i don't think that consolidation will happen anytime soon. that's a question for victoria later. how do you run an investment bank in this environment. i'll be speaking to the head of the investment bank and i'm looking forward to that conversation. >> certainly, we look forward to that indication in terms of the landscape of investment bank looks. no better man to be talking to this morning, great job, yesterday, you and the team in

davos. let's get you up to speed with the world news. >> the people's bank of china has injected the most cash in almost three years in its open market operations. the central bank conducted more than $16 billion, a seven-day reverse repos. that comes ahead of the lunar new year holiday which demands for funds at a time when capital outcomes are mounting. barclays with a fresh round of job cuts. 1,000 positions will go around the world, australia, malaysia and taiwan. they are seeking ways to boost growth and confidence. offered about $5.1 billion for the struggling company. a spokesman confirmed it is in talks with several parties about its liquid display or

l.e.d. business, they have refused to discuss. the central bank disappointed markets with the stimulus expansion. oil has reached new lows, declining inflation expectations and more bullish threats on the roe. they need to strike a dovish tone to convince e.c.b. will do whatever it takes. he spoke to his in davos last night, his country's asset sales fund and that was the privatization of the port. >> we have very good signals. even though the last year, it was in europe, we have big opportunities ahead. >> that is your bloomberg first word news. for more on those stories, go

to our website. anna: let's check out the markets and check out what is going on in the asian sector. things were positive at the start of today's session, a little bit more mixed now? >> absolutely. good morning to you. things were looking very good early this session and a very strong rebound thanks to that rally coming through in the trade oil price. 2.4, so pan, up by expanding that bear market territory we saw yesterday. he turnaround coming two hours ago. here in hong kong we're also seeing the hang seng being told out in the late afternoon session. the china main vlad shares are now at their biggest decline since 2009, we have seen quite a lot coming through in late

trade. india looking ok, in fact, it's rebounded from 20-month lows and australia before we saw the downward turn in the region. energy producers by half of 1%. the markets still trading down by 1.3%. one market pretty much in the red all session, so holding around the lows of the day there. japan turned things around in the region. i show you some of the stocks we have been keep an eye on. sharp closer higher than 6% on the report. it had been up to 21%. the late trade in australia, origin energy shows how good stocks were looking. a turnaround signaling another weekday here in the asian region, madison, anna.

>> it's the start of our davos coverage today. let's go out to jonathan standing by. john, you have a very special banging guest? i do, thank you very much, i'm president of he the unfortunately b.s. bank. the markets are doing one thing, i'm really struck by the tone at davos. you have erratic nature and in davos, they're calm and measured, everything is ok, what do you think of that? >> i think that the c.e.o.s or the chief executives are positive because the macronumbers are quite good, the other numbers aren't particularly wearing. the markets have lost confidence. there is a lot of uncertainty out there, a lot of defensiveness and things will

degenerate very fast. on that basis as you see perceptions change from one direction to the other. >> the market reaction can become real for the economy. do you think it can become real as far as a downturn? >> the market can influence a democracy. we see yevers are investors on the sideline. that in return feeds into levels of activity and everything else. it does an impact. >> we talk about volatility being good for your business. this kind of volatility is not good for your business, is it? >> no, it's not because in articular, it's not gradual or forecastable. you have big swings in one direction or another for apparently no reason. it's very difficult to play with and good volatility gets

people to trade. volatility like this one gets eople to stay on the sideline. >> four months we talked about the first federal reserve hike. the market is taking the view we may not get another one in 2014. where do you stand on that idea? >> i think we'll watch very carefully how the economy does and we'll have to wash how the market do. at the moment there is no really indication that the economy is doing worse, but the markets are very uncertain. i think it still ought to be played. >> you walk through the negative scenarios and getting them ready for the negative scenarios. you were running it through the business to so how people would react and what would they do.

what's the big risk you're concerned about? >> it is difficult this year is plain uncertainty. we're all driving through a fog. as you say the economic numbers aren't that mad. uncertainty, market behaviors. so it's very fueled to plan for business where things are so foggy and uncertain, at this point in time, we are trying to be as defensive as we can be which in turn adds to this low level of activity. >> in terms of the uncertainty, we have the market reaction, the growth risks. the biggest risk has been litigation and the costs. are we over that, is it done? >> i don't think we're over that but hopefully we're not adding to that. so we're at a point where we're going through what we have accumulated before and through

evolutioning culture and behaviors, we're not adding significant more to that. it's difficult to see if it's finished or not, there are things to go through the grind. >> can you talk about the litigation and where you are in the process? >> we can't comment about that. >> let's talk about in this violate, you have a whole bunch of c.e.o.'s, we going to cut back on the bonuses. we're going to cut back. in this environment, bankers shouldn't be earning the money where they're earning when times were good. >> we begin at the investment -- we were league to going to take a close look at behaviors which we look at very

closely. the force is still unbalanced, the performance of the investment obtaining was solid. so depending on how we close the year and not having pad surprises, it should be a solid we're for compensation. a story went like this, one nk cuts bonuses, another keeps them. is it that simple? you go back on how people are tied together in an organization. obviously if they're below market and you compensate, you have an issue. culture, e a strong people feel strongly about the organization. it's never just about one year and the extra 10 or 15 or whatever it is perfect in compensation. these people want to be there.

obviously with performance being very different between investment banks, there could be situations where you have a lot of instability versus those who don't. you can have your talent at risk. >> you moved early, three, four years ago, you take over the investment bank, a lot of veteran investment banks want to be here right now. i wonder what the opportunities are for you, everyone want to break into advisory, where is the opportunities for your bank. >> we have had a three years to make sure that everybody is on the same page. make sure everyone works together. now we have clarity of direction, stability and a team that is working tightly. in that environment when other restriction or uncertainty, we have the opportunity to go and make grounds with clients and take more business and take more share. is that going to happen?

well, it's up to us to execute. these markets with registry changes, and u.b.s. had a model that worked well in the last three years. >> in terms of geography, the opportunity is there. we have heard the executives talk about a commitment to china. titles are ic where? egypt for u.s. the investment bank, in terms of the distribution of our business, that does not mean that we are very well committed and continued to be on asia pack, china, trailia and japan. we're going to continue investing. but the number one priority

remains how to build a viable and profitable u.s. business because in the mix of our have low , the incidents compared to others. >> andrea, man us, anna, throwing things back over to you in the studio. anna: thank you very much. john farrell live in the cold. now it has clarity on its direction. >> the volatility is not great for banks. we have many more interviews to do today. it's a cracking day with the team in august, where is china ading, >> the china security regulatory commission, goldman sachs and more to answer that

crucial question about china. 7:45 u.k. time. >> that's what we'll be discussing mess, -- more to come. ♪ ♪

>> demand is still rising. the challenge which is that supply has been rising faster than demand, so we have a situation where demand goes down, that will call for structural issues. anna: that was siemens c.e. o. later today, don't miss our interview with the indian central bank governor at 10:45 unfortunately k. time. manus: and it's 6:22 here in

london, 7:22 in fringe further. >> said to have launched a fresh round of job cuts and told bloomberg that 1,000 positions will go around the world, it quits australia, malaysia and taiwan. seeking ways to burst earnings growth since taking over last month. shares in japanese lock trenics group have jumped in tokyo trade. it offered about $5.1 billion for the struggling company. refused an for sharp to talk about specific discussions. expecting to post a loss in the fourth quarter. that's after setting aside more money for legal matters and taking a restructuring charge. it's the first fullier loss since 2009. goldman sachs fourth-quarter

revenue jumped 27%, net incomes fell 65%. the c.e.o. said a diversified business mix delivers solid results in a year of uneven activity. or more on those stories, go to the website. anna: you're the economics director at city christian, great to see you as ever. let's get your thoughts on how the psychology around so many parts of the world in bear market territory, it feeds through to the economy. we found 40 markets in bear market territory. oes this have an impact into the world of economics? >> we are in a vulnerable place at the moment. we always had disappointing global growth for years now and so far we have had global central banks reacting to that

with even bigger interventions this year. this year it looked like the fed is continuing to hike rates, at least gradually. others may stay put, there is no big bazooka at the moment. things are quite different in 2016. if you look at fourth-quarter growth globally at the end of last year, we were close to the 2% mark which is what we define a global recession in it goes below that. we might see growth in 2015, upgrade expect a full to growth. manus: it's interesting, either they're not in the mood or don't have the admonition or the pro clift. a comment that we have the j.p.

one c.e.o. in davos, no needs reserve, but none can compensate against a lack of confidence. hat's what we're dealing with. that's in short supply or disappointing every day when you look at these markets. >> when you mention the reserves, you talk about where the program is. that's also where we haven't as much subpoenased in how central banks might react to the downward surprises in growth. the advance economies are not seeing the big downgrades, it's the emerging markets. how they react and if their reactions actually prove the ituation or make it worse.

>> 2% globally and that's a recession for you? >> if growth falls below 2% on a sustained basis, there is volatility, but if not, you have global reverse. 2.7% that is a little other than we have previously, 2.7 still sounds far away from the 10%. you might be a 2.3. if you look at how forecasts in the previous years have gone down as the year progresses, we might end up with two. >> where is the real growth for ou, 7% for city and 20 seconds worth. >> we see a six in front of the digit, the reality is more like 4-5. manus: i big day ahead. it's all about the press conference at 1:30, how dovish

can he be anna: more definiteo when we come back. -- definiteo when we come back. ♪ ♪ ♪

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you've got the power, to turn on the light shape the best sleep of your life. sleep number beds with sleepiq technology adjust any way you want it. the bed that moves you. only at a sleep number store. bloomberg's get to first word news check with nejra cehic. ofra: the people's bank china has injected the most cash in three years in the open market operations. according to traders, the conducted -- it comes ahead of the lunar new year holiday which spurs demand at a time when capital outflows are matching. barclays is said to have connected a fresh round of -- have enacted a fresh round of job cuts.

the ceo has been seeking ways to boost earnings growth. it is ecb decision day, the first of 2016. the first since the central bank disappointed markets. we have seen then new lows, a rout in stocks. while no policy moves are expected, mario draghi may need to strike a particularly dovish tone. on iranval of sanctions will remove $15 billion per year in foreign investments. the country central-bank government said the new funds could finance a rebound in the economy hit by an oil slump. obvious is that our country can absorb a great deal of foreign investment considering it's potential. when an $50 billion per year is not far-fetched. latest industrial

accident has killed at least three people and left one more missing. the massive explosion at a fireworks plant also injured more than 50 people and shattered windows in nearby houses. they confirmed -- last week, 10 people were killed at an explosion in a similar factory. and japanese and government agencies confirmed that not only was last you the hottest on record, it was the hottest by a record margin. wasu.k. office said 2015 three quarters of a degree celsius warmer than the long-term average from 1961 to 1990. anna: let's check in on the markets. caroline hyde has all the details. look slightly more positive in the asian session.

we cannot shake off this risk aversion. -- we sunk on the japanese indices. son the china is throwing much cash, they are trying to reduce overall the liquidity block we are seeing. they are really trying to ease the cash strain. ceasee pboc's actions, we talks turn south. notjapanese central bank is playing ball. the said it is too soon for boj to take further stimulus measures. the route we are seeing is temporary. stimulus,ing down any down go the markets. senge also seeing the hang

posting an interesting statement. it is trading below book value for the first time since 1998. we are now trading below that asset value of the hang seng. it is at 0.99%. we are nowhere near the lows in terms of stock market price, but the value of the stocks currently, we are seeing the net assets below the hang seng in a moment. aversioneing risk hitting the currencies, japanese yen rising, swiss bank rising. you are seeing the south african round the australian dollar. manus: let's cross back to devil's. -- davos. jon: thank you very much.

very pleased to say that we can bring the ceo. >> first i met demo's. >> a beautiful morning, freezing cold. talk to me about that. >> we are about 80 companies that have all come together. i have never seen that before. signed up to do what they can to improve the prospect for antibiotic effectiveness which means better research and more research. to work with governments to figure out what the whole health system needs to do to encourage more antibiotics to be discovered and get them used in a safeway. at a time when people are throwing bad words that the

industry overpricing, give me your thoughts on what is happening. do you see it as an issue? >> yes. to argue that drug pricing is not an issue, it is challenging when we know there are a large number of people who do not get access to health care and medicine. we have to continue working on that. what we are focused on is a tier pricing approach. the richer countries should contribute more than the poorest. the poorest countries in the world should not be contributing much at all. ,s far as the u.s. is concerned i think that this is something that needs to be addressed properly. we need to be getting the right people around the table all stop this is a health industry issue. how do we make it great and accessible and affordable? we need to focus on how to create more transparency so people understand the true cost of this innovation.

we to make sure it is incentivized and gets to the people who need it. hans point does that mean you will head to the u.s. and talk to policymakers? have they called you, what sort of role will you play? >> we are a british cup a first of all. we are not really the central actor in terms of who you might expect to have the biggest role to play that we are very significant you a supplier of medicine for the u.s. government and u.s. citizens. we have been trying to read through action rather than words and the last six innovations we've launched in america, we've launched at or below the prices of the predecessor generations of technology which we are trying to replace. we think that is the right kind of signal to be sending. where it is appropriate, we will be putting our view forward. we have to recognize, average people and ordinary people are worried about whether or not

they can get access to the kind of innovation we might need. clearly an.s. is advantageous place. disadvantageous in terms of the tax regime. we saw that deal fall through because of inversions, what sort of distortions are they creating in the pharmaceutical market or does it have no effect. next it's a bit early to say if it had any effect in the real world. i was brought up as a junior manager thinking what the real world and that tax world all stop haunted what nothing says the real world -- hans point, nothing says the real world like demos. >> it's a question of how do you make sure your business has a sustainable financial future. we are a british company and we benefit from a british tax regime. this is our 300 year anniversary. we have been british for 300 years. i think it is important that -- brings country, that

with it part of being society and all those good things. -- that is a very big piece of what comes first. then you work with regulators which is as constructive as possible. the factory regime there to help create wealth for everybody in the country. hans point you don't think -- hans: you do not think there is a target on your back? >> on the margin, you could make that kind of argument. when you look at companies like ours we are what hundred 10,000 people. 25 billion pound revenue business. when hundred factories, 150 country operation, massive r&d operation. that is how you have to think about when you behave in corporate activity. organic development, while it can take time, and is not

particularly thrilling, we think that it is the right way to develop long-term value. jon: you said you were a british company a couple of times now. let's say you wake up and are no longer in the european union. >> not to sound too defensive or if vases, i'm not sure i will answer the specific questions let me turn around slightly. the most important part of europe is over the last 15 or 20 years, europe has gone from 27 fragmented independent, not talking to each other regulated authorities in the health care space to one. imagine going to america and having 50 fda's instead of one. that's what it used to be like in europe. now we deal with one. because they are trying resources from all the member states it is an incredibly capable organization. global have these two

agencies who have real credibility. that's a big win. for us that's the most important aspect of being part of the european union. we think it is a very important benefit. jon: if there was an exit with there be a negotiation. where maybe something would be sorted for your industry, but if there was a protracted gap, would you be reconsidering your headquarters question mark >> we have been in britain for 300 years. me to imagine, we have been through the napoleonic war, you name it, a lot more than this. i would be very surprised if that were to happen. i think that the more real question is, let's see what the renegotiation brings out. everybody should be saying, whether it is the united states or the european union, any effort to improve the competitiveness of the block surely that has got to be a good thing because that's good for

everybody in europe and it is good for that world because of the size of the european market. hans point -- hans a boy, what's the likelihood we will have -- hans: what is the likelihood we will have spinoffs in the next 18 months? .> very low what i said in san francisco is we put together an unusual transaction, the world's biggest vaccine company and the world's biggest consumer health company. we are working through a. -- we started less -- we are working through a period. last march. what i would say in terms of the consumer business is, that business will be a good business. a 10will be having toward billion pound business. you will double the profit margin and are well on the way to doing that.

at some moment, it will be big enough to be conceptually thought about on its own. there are 100 different permutations how we might come to that view but for the first time, that could be conceptually possible. i don't see any rationale for why you would sell it to separate the vaccine business from the pharmaceutical? can we expect to see you at the top of this business for another eight years? >> they been here 31 years. this is eight years as ceo. but i'm focused on is getting this transaction finished, releasing shareholder value and more important is actually delivering the next wave of our r&d property. of all the big pharma company, in q3 we had the biggest contribution of new products to anybody in the industry. i am focused on getting that done. it has been an extraordinary experience. hans: do you make your 10 year

anniversary? >> i am focused on driving forward this business. milestones are sort of the least important milestone. the most important is, are we getting new medicines discovered, are begetting them to patients across the world and creating value for shareholders? we had a different plan for a lot of other companies and chose not to go down the m&a route. we have gone the organic reproach -- approach. i will not declare victory. jon: thank you for joining us here at bloomberg. davos,mdow posts -- switzerland, back to you. anna: we feel for you in the cold. zip up that coat. jon: -- manus: you want to stay with bloomberg. this is an interview you want to stay tuned in for. the imf managing director

christine lagarde with francine lacqua at 9:00 a.m. u.k. time. anna: up next to get the ecb rate decision of the year and -- ♪

anna: you're watching countdown here in london. let's turn to the business in germany. in a world economic forum in davos, hans nichols sat down with you -- with the ceo. many are talking about, yet a few do it. i believe we are one of the few applyingell involved digitalization in manufacturing and engineering.

many of them are doing vertical software simulations, the real world and the vertical world. software will determine the optimization of the value. x can you do that doubling without new acquisitions? >> absolutely. >> where will those jobs be? europe or germany? >> they will be whether demand happens. and the next generation of products and solutions. that's very important because sometimes decision-making is different. inc. about the premium car industry in germany. manufacturerm car builds up manufacturing plant in mexico, there is not the nuts and bolts being decided at the

engineering center. it's because of customers. because innovation today does not happen in little cubicles. innovation happens by collaboration. it is important to be close. it will beeurope, the united states, and it will china. definitely india. hans: will the computer programmers in iran? >> if the environment allows us to do that, definitely. iran has 81 million people, that is more than germany. developsok how society basednd is moving people on ability. infrastructure, the rest will come and create demand. we got a rate decision

from the european central bank a little late today. none of the analysts surveyed expect new measures to be announced. positioned for greater stimulus and expansion stop you saw the euro search after that so what can we expect today? anna: no expectation of anything news today. --ch it's seems to be what march seems to be what many are expecting. does that fit with your thought? growingesearch on the a chance that they will move in march. postve had the oil declined massively. in the longer term they have second-round effects which will affect core inflation which is already stalled and may not increase as much as the ecb thanks. the inflation outlook could be a trigger for more action.

there is also positive data from the economy itself, unemployment is falling faster than they had expected in the last forecast. balance, we still think that they will ease in the first half of the year. by june the is a growing chance they will do it in march but still not our best case. if we have a chance to gauge of future price growth, this is what you would see -- say where there can be an unanchoring of inflation expectations. not just for draghi, but for very much every central-bank. there is a one-way trajectory on that. >> indeed, but this is a market based indicator. we have all been focused on ever since mario draghi started talking about it. but if you look at the last minutes, they are also within

the governing council with reservations about this particular measure because it is being talked about so much and i may be biased because of that. this is only one of the measures the ecb will be looking at. manus: that's the negative feedback loop. >> it could be exactly that will stop it is relatively small market potentially. it's only one of the measures they will be looking at. there is also the survey of professional forecasters which may be a little less effective. all in all, given what we have globalabout in terms of growth being dis-inflationary and the eurozone recovery not being extraordinary, that is also certainly not adding a lot. in principle, they will be looking at inflation and scratching their heads and thinking, how can they get it acted target in a reasonable amount of time and that will continue to create the case of more easing. anna: so there are doubters at

the ecb. we saw in the minutes that perhaps the government counsel is not united in what it was to do here. in the fourth of december in new york, we heard mario draghi, he himself saying there cannot be limits to how far we are willing to deploy the answer meant that his disposal. you think that he takes those doubters with him? question. very good there are doubters and we think they are a minority. if worst comes to worst they will still act forcefully as long as they have something to use. it does take a nice trigger. new forecast of. there are arguments on both sides. in march we will have these. in march they may still get their forecast in line with them fulfilling their press billy targets. in june, it will be too late and

they will probably have to act. jon: if you didn't have a global recession to worry about or disinflationary fears, he has this to contend with. indices of foreign exchange. we have a rally in the euro of 2.71% and it has only been trumped by the yen and the dollar. i love the back page of your notes. it talks about helicopter cash and that the ecb has got legal ability -- i do read. anna: well done, manus. >> they can intervene in the fx market, would they or could they -- can you imagine the germans agreeing to that. >> they have intervened before but the ecb intervention has always been a globally coordinated thing. there is plenty of communiques of the g7 20 us and so on in the

unilateral intervention especially a big central-bank like the ecb would probably be seen as the start of potential currency wars. and would therefore lead to retaliation which would offset the positive effect. i do not think it is very likely come a in particular as the euro is not overvalued at the moment. wehink it's a tool that could see if the euro rises a lot further but that is not the situation we have broadcast. anna: thank you for joining us. manus: there is a beautiful shot and hans.ith john up next, we will be talking to the ceo of ici. anna: and alexander stubb's. all of that coming up. lagarde joinsne

francine lacqua -- did you know they did a survey of the powerful women of davos, and i am referring to francine lacqua, not just present the guard. anna: will take a ship -- not just christine lagarde. anna: we will figure short break. ♪

manus: bear markets abound as global stocks buckle from japan to brazil will stop pitch elation or more pain to come? is set to cut more than 1000 jobs at its investment bank. >> sharp focus, shares in the electronics maker climb. anna: the draghi dilemma. how will the oil price play into the ecb rate decision?

anna: welcome to the program everybody, it is 7:00 here in the studio here in london. thinktake a moment to where we have been in the last 24 hours. 40 markets we have identified in bear market territory. a little bit more stable. what do we have in store for the european equity trade? >> what we have here is this little bit of a nip higher by london, paris and frankfurt. we looked globally we have 63 markets we looked at. 40 of those markets with a total value of 27 trillion dollars in bear market territory and the u.k. had just joined that. a smidge of away but we saw this in the asian section as well. there was a bit of reprieve. u.s. equity futures are still indicated lower.

18 on the s&p 500. anna: a little bit of breaking news coming through on s&p miller. the estimate was 5.5% and this is a business being bought at the moment by the industry's biggest deal. a few more details coming through. manus: this is on the organic log. quite a considerable lift in that. let's look at the other markets. you have money moving around. the commodities are a key focus. i love the from davos. and they got off the plane, they were talking lower for longer and now they are talking a lot lower for an awful lot longer. copper finding some kind of a base. i say that with a hesitancy. the bloomberg commodity index unchanged. it's the third year that

there is more supply then demand in these oil markets. checking in these other assets that move around. we have the yen moving this morning as you might expect but i see it falling because there is speculation about whether we might see more easing. aen though prime minister of has been pouring cold water on that. . manus: we have equity markets turning lower bar london. i know we have a number of different voices saying how low can we go. the s&p can drop another 1650 by guggenheim and we have a protracted decline on the way in these markets. anna: there are other voices. manus: did you find the bull? anna: i did. equity prices dropping to this extent is not warranted. there are voices on both sides. don't forget, francine is going

to be speaking to the ims managing director a little bit later on in the program. before that, let's get to the slopes of data loss -- davos. jon: we said it again and again, how detached the ceo's seem to be from the tone of financial markets. you have markets in their markets and nobody wants to say the word, bear markets. therepoint there -- hans: is a bear in these markets somewhere will stop something we see is that there is a great deal of talk about what is happening in global economy in terms of the fourth industrial revolution. nothing on this question facing europe which is what do you do with migration and refugees. is's engine at risk question mark i traveled here without breaking out my passport. these the finance minister of finland, a committed european in all the greek talks which seems

a decade ago in some ways. i think we will depressing him on the politics that so far for the most part has been dominated by the u.s. question. everyone's talking trump and bernie sanders and the refugee issue is really in existential question. jon: europe is always medical. the other interview i'm looking forward to is the sitdown interview with christine lagarde. it will be interesting to see what she thinks is actually going on in china and whether the market is overshooting to the downside. for our viewers, looking ahead to the market open, radel eu of o- rate delly of -- ray dahli of bridgewater. i am looking forward to get his insight into what is happening with global financial markets. hans: the view on china brings us back to another guest, a chinese regulator.

what they are saying and trying to signal to markets is one of the crucial questions we will be talking about all day, perhaps for the year. jon: we will had things back to you in the studio. markets are cool, calm, collected. where is the reality? here in switzerland or the market? manus: i think that you boys have all the realistic goals from those ceos you are talking to. he would not commit in terms of brexit or not. well done on those interviews. we have a lot more to come. meantime, here is caroline. caroline: the people's bank of china has injected the most cash in three years. therding to traders, central bank conducted more than $16 billion and 44 billion in the 28 day contract. that comes ahead of the new year holiday which spurs demand for

funds at a time when capital outflows are already mounting. barclays is said to have launched a fresh round of job cuts. they told bloomberg that a thousand divisions will go around the world. the ceo has been seeking ways to boost earnings and restore investor confidence. the shares in japanese like tronics -- electronics group sharp has jumped into the queue trade. confirmedn for sharp that it is important. ony refused to comment specific discussion. >> it is ecb decision day. the first of 2016 and the first since the central bank disappointed markets with its expansion. we have seen oil reached new lows and a rout in global stocks. draghi mate need to strike

a particularly dovish tone to convince investors the ecb will do whatever it takes. alexis tsipras says investor trust in the greek economy is returning. >> we have very good signals from the economy in the last months, even though the last year was a challenging year for greece and europe, i think we have big opportunities ahead. storiesor all on those do go to terminal and it back to you. manus: thank you very much. europe is opening for business, asia is finishing the trading day, it has been a day of volatility, some of them indicating lower, how are you finishing today?

well at all. good morning to you. in the last hour we have seen quite a lot of the selloff come through in the markets will stop the shanghai composite closing down 3.2% which is a drop of over 2% in the last 60 minutes which is also seen the hang seng exacerbate its losses. hong kong stocks now falling below the value of their net assets for the first time since 1998. that means that the hang seng index is basically of similar vein to the brazilian and egyptian stock market in terms of values. we were talking about the fact that it had rebounded in india from 20 month lows and is also in the red, all of this as we start to see the selloff in the last 60 minutes or so. japan closed lower by 2.4%, despite starting the day on a rally. deepening that bear market territory we saw yesterday but we are budgeting a big pickup in

sharp shares which are up 21% on that takeover bid. but closing lower on the index by 2.4%. the only market to finish in the black was australia and we are still seeing that firmer oil price but the last two hours or so seeing that downward momentum in stocks. currency markets taking a hit we had seen the height yield currencies higher up another aussie dollar is down by 0.1%. sellingday of heavy coming through in the latter part of the day's trade here. caroline: thank you for joining us from hong kong. manus: the ecb makes its first rate decision later today. it is the latest since a disappointing the markets back in december on this stimulus expansion. but mario draghi is convinced that investors and the ecb will still do whatever it takes to

save the euro. caroline: let's get to our western european central bank who joins us now from frankfurt. what will ecb watchers be looking for from draghi today? what will be the key watchword for you? >> watchwords would be difficult to pick, but the key thing here will be any hint that there will march. action as soon as we only had stimulus back in december. now would probably be seen by most people as too soon. the markets would disappoint in december as you have noted. we have had slumping international markets and crucially, the oil price which is waiting on euro area inflation. the ecb is currently forecasting inflation numbers of 1.6% next year which would get it close to its goal of under 2% and you have to say that does not look likely anymore.

we will have the macroeconomic forecast revised. that would be a good point to stimulus to hit our mandate. less so today but he may well queue people up for more action. chat: we were having a with christian schultz who came in from city and we were talking about the potential for more stimulus and they say the scenario for them is probably in march time. is that the consensus thinking? >> almost every economist we have spoken to expects more stimulus later this year. most are saying march. somewhat think there may be a wait until june. with all prices this low, inflation is stuck near zero. if draghi really means he will do whatever it takes to get inflation back to mandate, as he said december 4, there cannot be

any limit on what the ecb will do within its mandate. we would have to expect more to come. let's see how dovish the tone is from mario draghi and how cohesive his words are in terms of the united panel. anna: many more interviews to hosts -- here and down dowavos. and where is china heading? francine lacqua will be sitting down with the head of the imf. don't miss that conversation at 7:45 u.k. time. manus: where else would we be? we are going back to davos with the finish finance minister. ♪

anna: welcome back to my 17 minutes past 7:00 here in london. let's get the bloomberg business flash from caroline. caroline: barclays is said to have launched a fresh round of job cuts. this it a thousand positions will go around the world at the investment bank in australia, korea, malaysia, and taiwan. the ceo has been seeking ways to boost earnings growth and restore investor confidence. shares in the electronics group at sharp have jumped in tokyo today. confirmedn for sharp

that it is in talks with several parties. they refused to comment on specific discussions. >> deutsche bank shares tumbled after the company has been expected to post a $2.3 billion loss. after setting aside more money for legal matters and pitching a restructuring charge. goldman sachs's fourth quarter revenue beat estimates is advising on mergers jumped 27%. net income fell due to costs of settling a mortgage probe. the ceo said that a diversified as this has delivered solid results in a year of uneven global activity. donated hundreds of thousands of pounds to keep the u.k. inside the eu. a sign at the banking industry is rallying behind the push

against the brexit. concerned it would jeopardize london's role as a global financial center. for more on those stories, watchers can head to their. >> -- manus: these equity markets are just easy enough for some small games, it will not be more generous than my vocabulary allows. london indicated 56.37. the debate is, have we seen the bottom. in the meantime let's get out to davos, hans nichols is standing by. >> i am standing by with the finance minister of finland, thank you for joining us here. we are here in this amazing setting and there is a lot of talk all throughout europe. we heard the german president yesterday talk -- come out for an upper limit on refugees. do you need one? >> i think we are reaching the upper limit right now. say they are hypothetically

around 60 million misplaced people. about one million came to europe last year. another one million expected to come this year. i think we're looking at a lot of economic and political upper limits right now but the answer is not to tap it, the answer is to have better external border control. next you do not want to see an upper limit on up your number? >> that is what we need to do. and we need better hotspots at the point of entry. greece had over 800,000 entries last year and we need to be a ball to deal with the asylum applications there. are two point is, there fundamentals at risk. tough times for the euro. we spent a lot of time in brussels talking about greece, is greece moving fast enough? what would you like to see? >> i had the greek finance

minister in helsinki last week and i bumped into the prime minister of greece yesterday. if you look a year back or even half a year back, there is more confidence. the third program is in progress and they're looking on the third review. pension push it on reform or privatization but things are looking much better now than they were. >> it seems like last year we spent a lot of time on the review at the time. are you worried this summer we will spend a waste of time on the completion of where they are at? >> i am not too worried about it. one year back into davos, the government was just in and they were anti-austerity, anti-imf. then we had half a year of basic mayhem and chaos. in july we were at the crossroads and now reviews of those building blocks. they have had elections of the political situation is much more

stable in greece. things are much better than last year. means by -- that definition that the greeks will have convinced the rest of us that they said they will. hans: i'm glad we talked about lagardestop does madame have finland's vote? >> definitely, but it is a decision we have to take europe-wide. i think she is an amazing professional, she is a true champion of global and financial issues. she has very good communication skills and is good on substance. you have to be pretty good. here this conversation on this fourth industrial revolution. you joked, i do not want to interview a robot in 15 years. tell me where the future is headed. >> i don't know where the future

is having but the whole idea of the fourth industrial revolution is fascinating. more information technology, artificial intelligence and robotics. that will change the whole economic scene, all the business models. some wise person somewhere said you have facebook, a huge company which does not provide content. you have airbnb which provides accommodation but has no real estate ownership. it will all change. some people say in 15 years, approximately half of current jobs will be taken over by robotics and artificial intelligence. what will this mean to business models? i don't nowhere the future is heading but i find this stuff very exciting. >> finland is not growing perhaps as fast as you want it to. situation in russia going to affect not just the finish economy but the european economy? >> the russian economy is by

definition not one of the largest ones. our topalways be one of three trading partners but now it is top six so it has certainly plummeted. the price of oil will impact the russian economy because half of andr state income is oil gas exports. we are looking at a period of low growth, low inflation and low interest rates. this should be conducive to a lot of good structural economic reform. russia is a big player in our economy and we hope that they will bounce back but things are not looking good now. >> staying with the eastern side of europe there are big changes in poland and new laws to media restricting. it seems like it's in the european spirit. >> in general, if you look at the refugee crisis in the populist movements we haven't ideological battle on one side. your liberal democracy and freedom and on the other side

you have some foreign of nationalism, populism and restriction and i obviously stand on the first side. it's good they started the procedure and now we have a lighter procedure. you do not have to go to article seven and say sanctions, but i understand they are having a good dialogue. the finnish government, you are all on the same page? >> we have a government line which is to support the rule of law, media freedom and the rest of it and i tried to bury that. hans: that's what i said, there may even be a robot here already. i will give you a good indication of just where greece is. spellone knows that the his name properly and spell it, that is bad news for greece. if we don't, greece could be out of the woods. anna: you always have a very noble way of taking the temperature of the global investor community. it is excellent. hans nichols joining us there from devos. manus: the big focus is on

commodities. brent and wti on along with the commodities. a lot lower for a lot longer and that is putting pressure down again on brent. anna: 28.14 on the nymex benchmark. saying it's been three years that we have seen the supply that was more than demand. and things have been moving around. jon: we're the dax indicated lower and london indicated higher. the dax futures are one third of 1% down. an average swing of 2.7%. volatility is triple what you saw last year in u.s. equities. that is the tail wagging the dog. anna: plenty of voices coming out on either side. you can find both of those

voices out there. plenty more to come from davos when we come back. the on the move team will be bringing plenty more live interviews. ♪ the only way to get better is to challenge yourself,

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"on the move." we are counting you down to the european open. i'm guy johnson alongside jonathan ferro in davos. what are we watching? jonathan: this disconnect between markets and executives at davos. the bears have it in the market. global stocks extending losses from japan to brazil. barclays is set to cut more than 1000 jobs at its investment bank. and draghi's dilemma. how will the oil price play into this afternoon's ecb decision?