macquarie. right. japan had a cracking session overnight, up 5%. how is your going to open? let's find out with caroline hyde. caroline: we had it wanted to 60 billion euros to the stoxx 600 yesterday. he managed to talk up the market. seeing stimulus to come in march. jpmorgan and rbs saying there ringing all of their expectations as soon as march. you start to see the worrying of the equity markets after such sensational falls. we can start to eat back. 2%. up 2% -- cac up france. falling in

ftse 100 is going to be a similar feel. the oil company, the miners, up 3% it only one falling. sabmiller managed to rise up yesterday. let's dig in to what is on the outside, brent powering through, up above $30. as we start tok buy some of these loans. picking gold out of favor. the yen in asia dipped lower. .4%. seeing gold up by the asia power of it overall, the nikkei up 5%. outliers,one of the down. the deal is off. the u.s. regulators weigh in. its low merelyng

unit -- it's no mere unit. it can no longer sell to go scale. down there shares drop. we're expecting big moves. s.a.p. expected to rise higher because the rise focus on the cloud is winning out. todd's likely to lead up 7%. -- salesan shoemaker up. back to you, guy. told bloombergos that china cannot avoid a hard landing. >> the chinese left it too long thedjust the changeover in growth model that they have to

investment led to domestic lead. a hard landing is practically unavoidable. >> you are looking at a financial crisis that would start in china when authorities also could not deal with this? key issuehis -- the is deflation. -- it is a condition that we are not used to. none of us have lived in a deflationary environment. the last time we had that is in the 1930's. around, i was not yet engaged in the market. just do not know how to handle it. it is a different environment. it.now, we have to fix

caroline: on china -- francine: on china, do you expect a hard landing? >> it has happened. i am not expecting it. i am just observing it. china can manage it. it's got resources. choosingatitude in policies than most other countries. it has over three chilean in reserves -- over 3 trillion in reserves. way of inflicting their problems, passing it on to the rest of the world. they can handle it, even if they do not get the transition right.

continue forainly two or three years. -- three years on the wrong course. guy: george soros speaking to francine last night. jonathan: i think it is really interesting. doubles over the last couple of days has been somewhat of a negative chamber -- somewhat of an act or chamber. i wouldn't take the other side of the trade. i am looking for a hard landing. that is a big force. that is george soros. that is been a topic here or for the last three days. yesterday, china's vice president told uber that the country has no plans to devalue the yuan. -- told bloomberg that the country has no plans to devalue the yuan.

quote. i'm going to look after stockholders. it was interesting that the vice president katie douglas with optimism it he came here -- president came here to doubles with optimism. within those comments, he spoke about the stock markets. he highlighted about the understanding. we in the west what we understand what the market is. jonathan: i don't think we have them in the europe on the west, but you look at china suspending ipo's, telling big stock holders that they cannot sell. then the government comes in and says we will look after you. through their lenses, when this is a socialist government, how much of that has got to do with what is going on? >>ks the communist party --

the communist party is all about controlled. -- is all about control. you are giving up a whole sway thessues that affects economy and society within the establishment of the communist party. there is a massive debate going on about how much control to give up. junk of the regulator was keen to say i am here to communicate. based on your experience in the world economic foreign -- economic forum, have the chinese done a good job of committee kidding what is going on in china? -- good job of communicating what is going on in china? >> probably not. admissions from some of the younger policymakers that we need to improve our communications. when you look at what officials say, they are sticking to the script.

they say one thing and then the other thing. -- id not guy johnson, a lot coming up on the program. do not miss the all-star lineup .rom those -- from diebold's u.k. chancellor george osborne and harry ito kuroda. the sunny but freezing doubles, switzerland. ♪

>> from china, i am positive. the market has to accept the positive because it is possible that is impossible -- part of the functioning of the market. guy: the ceo of credit suisse speaking to francine lacqua a little bit earlier on. positive on china. compare and contrast what he had to say about china with what we heard in francine's conversation with george soros overnight who says he is currently watching the hard landing happen in china the big subject of davos.

let's talk about what is happening right now. draghitalking in -- talking in's right now. -- talking in davos right now. we are up across the piece this morning. not as much as tokyo, 5% plus. center.mains front and that is the focus. that is what we are going to talk about. let's get back out to davos and francine lacqua. francine: thank you so much. we are pleased to say we are hit -- where with ahead of -- jin liqun. this is an economy that will do great. are we overoptimistic? pessimistic?

china is doing fine. up to a newing stage of development and adjustment. this could be called a transition. -- a transition period. china should move away from the former paradigm to a new system, instead of putting money into fixed asset investments. export of promoting which are not of the high-end kind of things. i think china should do a lot of things to deal with the challenges after 35 years of faster growth. yearng down to 6.9% last is not that bad. if in 2016, china's economy could achieve 6.5%, it might still be very good people could

-- we should keep in mind when percentage of growth in today's asna is not the same thing 30 years ago. francine: we worry about market volatility. out of china, and we worry about something bigger. because of leveraged, we -- because of leverage, we worry about a debt crisis. jin: the volatility is due to a couple of matters. he chinese on market is still in the nascent. -- is still in the nascent period. we need to have better educated investors. we need a deeper equity market which can absorb the shocks. we also need to improve the way the equity market is to be regulated. which isot something strange because in many other countries, this kind of

volatility happened. even across the world today you will see the market volatility is quite common. i think the market will come and the capital outflows as you mentioned just now is something in my view which china can certainly deal with. first of all, and a number of atas the investors will look opportunities. they do believe china has a huge opportunity, they would come in. otherwise they would go out here -- go out here and -- times francine: a lot of them are speculating. devalued.ill be jin: talking about the r&b,

there are a couple of factors. because of a lot of pressure on the rmb over the last couple of years. some people say it has been undervalued. i do not believe that way. believe you should push up the rmb. it is undervalued. issue did theys thehave different views. u.s. economy is picking up. the 25 basis points rate hike certainly would have ramifications on the currency's. francine: d think it was a mistake? francine: do you think it was a mistake? jin: i don't think so. i think it was preempted.

also, the slowing down of the economy probably prompted some people to believe that it would continue to devalue. i am sure it will come back. francine: a year? longer? jin: i don't want to give you a time frame. as long as the -- as long as china's economy continues to iswth, over 6%, i think this going to be a strong message to the outside world that china's economy is doing fine. it is not just for the chinese people for the outside world to just themselves to the change in the situation. in my view, over 6% of growth spurt would be very healthy for china. chinese economy can better handle the transition. when you go. -- when you gord

full steam, it is very hard. the chinese economy can better deal with the global warming emissions pollutions. instead of 7%, a percent, 9% growth which is quite common many as ago, now to have a slightly slower growth in return for a very good environment and high-quality growth, this is very good indeed. it is also important to cement china's position in the world. are you talking to the u.s. and japan? initiates the iia be. you may not be surprised that they are about 30 or 40 countries on the waiting line. they would like to join. very quickly, the countries

would be approaching 100. it is truly an international development institution. government -- five francine: so it doesn't matter francine: so it is a matter if the u.s. or japan are not involved? an: i understand that this is big transition because she had to put a lot of money into institutions, it will take a lot of time for some of the countries to make that transition. this is understandable. the door of 80 be his flock -- of adb is flung open. the message is very clear. we welcome all of those countries who have not joined, and they are interested and recognize the agreement which has been worked out by all 57

countries. it is not a good idea to push some of the countries to join if they are not ready. sincere and extending invitations to all of the countries in this world. if we workthat together to promote the asian economic and social development through infrastructure development, a more developed asia but not be good just for the asian people, but for the rest of the world. betweenthe connectivity euro and asia. these connectivity would be hugely important here it francine: do -- what you think your first loan will be? jin: in setting up the bank, we are working in parallel with the preparation of the pipelines.

we're working on a freestanding project which we do on our own by our own professionals. where working with a world bank -- we are working with the world bank. contrary to the expectations of so many people in several it is going to be cutthroat in a competition. aib will be racing to the bottom , lowering the standards. so much so that the world bank will be no match if you ignore the interest of the people who might be affected. understand we set a very high standard of environmental protection, protecting the people. if you take a look at the policy documents we prepared, they are really first-class. we have very good working

relationships with the world bank, with 80 be. .- with adb and for such are prices are very large. it may not be a good idea from one institution to put all of the money into one particular project. francine: especially at a time when is so difficult to get present investments for infrastructural projects. how do track investors to those projects? jin: if you prepare bankable projects which was certainly a doing well, i don't think you would have difficulty. you ask me what is the first country? i can only tell you we don't project, we only have the first batch of projects. francine: christine lagarde saying she has been supported by a lot of countries as imf director, but do you think it is

time for someone from asia to take over as head of imf? jin: i don't want to talk of this for a specific case, but overall i do believe the international economic order and needs reform. they need to move with the times. with the changed century, in the 21st developing countries are playing a bigger role. developed countries still have a lot of advantages. lead in terms of science and technology, innovation. so i think we should work together to create a harmonious

relationship between developed countries and developing countries. i think it is important for all of the member countries to work together with regard to the selection of the heads of institutions. i believe it is important and a commitment. francine: guy, i went to the back to you. we have some great interviews. we're going to be speaking to the financial minister of france. kuroda, i am looking for to that. given what draghi said yesterday, a lot to look forward to. davost lineup here out of . let's return to the markets over the last 24 hours. we've seen some incredible moves in the russian ruble. rallying this morning but what happens next?

some contrary and investors thanks this could be one of the big calls on the upside. here to discuss more is ryan chilcote. spectacular, up to 85. these are moves to catch everybody's breath, even the kremlin was talking about it. there are very different views out there on the market. they see the ruble going to 98 to the dollar. there are contrary and out there saying we could see a lot of ruble strength this year. ubs their cio of emerging markets says he thinks the rally -- the weakness we saw is overdone. goingnk's oil prices are to rise. he thinks along with the oil price, the ruble is going to rise. almost on cue, if you take of the last hour, oil and the ruble

have been playing along with his script. with that is really tight correlation right now at 0.7% between the ruble and oil. we get a rebound in oil prices, we could see a rebound with ruble. we saw that last year. it is not unprecedented. a lot of people say that is what you have to watch. last year was talking to the head of russia's largest bank. he said you tell me where oil is going to be? i think they will be concerned if the ruble weakens too much. they are concerned about inflation. she wants to get inflation down to about 4%. right now we are going and the other direction. it is nearshe said fundamental levels right now. we saw the summit -- we saw the ruble plummet. guy: ryan chilcote on russia.

marcio macro is going to be marie seo is going to be joining francine lacqua. all of that, next.

guy: welcome back. you are watching "on the move." word.ng is the operative the main markets are higher. they're not as high as tokyo was. goodve had french data out service data looking fairly strong. manufacturing data not quite as strong. that is going to be of interest to our next guest. this get up to davos. francine: i am excited to welcome a very freezing davos, ministerh economy emmanuel macron.

there's been so much to understand. how tough reforms can be to push through. are you disappointed? emanuel: we have a series of reforms to be put in -- into order to reduce coming weeks and months, we will implement these reform spirit on top of them, we have to speed up. we have to make radical reforms. so the announcement the beginning of this week, on top of the reforms we implemented in 2015. i think what we are doing on labor market first to deal with the cost of low qualifying jobs. [indiscernible]

it was an issue. stability --ase increase flexibility. , to take bolds decisions in case of downturn. [indiscernible] now what we will do is to level.e at the comfort in order to be in a situation to negotiate at the copper level. [indiscernible] -- in casent to know of downturn and problems. the reform we passed on the special course of labor markets to reduce and simplify.

francine: this is the anglo-saxon model. do you think that president ande --his president holl emmanuel: we have to deliver. we need to get results. that is critical. mandate.e table is choice not -- we have no to believe her. to accelerate and strengthen those reforms. francine: should he have emmanuel: ire? believe he will announce more on monday. if he doesn't, we will have made a mistake. francine: businesses coming in

and doing business in france? emmanuel: we have very good results. it is resuming. it has been resuming for 18 months. we have young people working for companies in my country. we have 20,000 foreign companies operating in france. two thirds of these companies reinvest in the country. impression first which is sometimes negative, but when you are there, i mean you understand the country and it normally you will reinvest. i think when you look at the facebook, until, samson, theyn, reinvested -- samsung, they reinvested billions and my country. we are number one in continental

europe. there is this dynamic in the country. now everything is about structural reforms for labor market. we delegated a lot of markets last year. barriers and a lot of sectors. simplify ando inflict flexibility on the market. left be much more aggressive. francine: you are clearly that darling of the business community. they see as a reformist, who understands the market. are you frustrated that these reforms are not going fast enough? medical know, i am not there to be frustrated. no, i am -- emmanuel: not there to be frustrated. francine: if you're not able to that you, does it mean

will give a signal that france needs to reform? otherwise you're going to take it back step? emmanuel: whatever it takes, i will do for my country. francine: include quitting if you do not get the reforms that you want. emmanuel: i am not going to speculate today, i am in charge. francine: what do you see in davos, when you see the volatility in the markets? notnuel: i think europe is risk it number one today. francine: for once? emanuel: exactly. use ago people were talking about europe in the eurozone. it is completely different today. when i look this it is all about the volatility on the market.

when you look at china and the andis in emerging countries -- when you look at terrorist attacks, refugees crisis, everything is about external risks and risk of divergences. we have to fix the situation. u.s. today is -- [indiscernible] is to reinforce the european pillar. we have to deliver much more. has a big challenge to deal with economic divergence good to deal with refugee crisis. and to deal with terrorist attacks. these three items for europe are all about shock coming from

outside. increasing the gains of divergence because of different countries. our leaders have a greater sensibility today to make a strong statement and provided vision to our people to say the answer is not about more national answer, it is about europe. it is about more border control, organization. it is about more solidarity and more integration. that is the leadership we need for europe. that is the precondition for leadership. investment in germany and willingness. francine: i know i am going back to the same question, how difficult is it within a presidential year to make reforms? voters are anxious. ,ou see it in the u.s., france everywhere. they are anxious about something. it is difficult to see what they are anxious about. it may mean they're not focusing

on the policy the country needs. emmanuel: i am a -- i am an optimistic, why echo people in my country are ready to have reforms. they support reforms. they are as impatient as you are regarding reforms. we have to deliver. if we do not do so, it will be part of the next presidential campaign here it it will be -- campaign. it will be a big debate. but people want in france is to take more risks and reforms. france of 2015 is very different from france of 1995. our people are much more in advance that our politicians. they want reform. they know what globalization is about. they know all of the challenges of globalization. i am optimistic because the push will come from the ground.

fromine: a poll coming you moreomes -- put popular than your prime minister. emmanuel: it is once more evidence of what i mentioned. the fact -- i was nobody wanted five year ago. it is only because i pushed reforms. i try to implement and do my best to implement those reforms. i think people wait for that. they love that. you have to be of the mystic about france because people are very aware of the situation and they want results. continue tou'll increase from now until april of next year. popularity is not that effective in itself. i'm not in this game. what is important is what you do. if you do good things for your country and on top of that you

are popular, perhaps your better to implement stuff. it is better. you are like you are. i am not a movie star. i don't need to become a movie star. francine: have you met with chancellor osborne here? if the u.k.ple say leads the eu, sure it would be a shame, but it may be beneficial for france as a financial capital. emmanuel: i don't think so. all of them are very welcome. i do believe the brexit is a loses game. -- is aa loser game loser's game. are with a lot of

objectives put on the table by chancellor osborne and prime minister cameron when it is about competitiveness, speed in europe. with the very careful [indiscernible] ,hy? it is how to provide them all the guarantees they need. altogether and especially for the eurozone to be more integrative. a critical point of the coming three years is the strengthening of the eurozone. [indiscernible] a commonort governments that's a common governance -- a common governance. francine: the french economy minister p also coming up, we have a great lineup. an interview with mauricio mochrie.

interview with the japanese central bank's governor, kuroda. all of that coming up. ♪

guy: welcome back. you are watching "on the move." the stocks.bout

caroline hyde. caroline: looking at what is leading the charge. and a tie in bank -- an italian bank. chairman isause speaking out saying we do not need a capital increase. we do not rule out help by the italian government. completed the securitization easing those concerns about the italian the lender -- the italian lender. up.copper miner and copper raises its shares to a buy it phillips down by 2%. one of the worst performance today. the sale of their limited unit -- of their luminance unit. the u.s. regulators once again weighing in. [indiscernible] guy: caroline, thank you very

much indeed. let me tell you about the stocks. these are how the main markets are performing. main markets higher. butas much as tokyo was let's take the bounce. it is largely led by commodity stocks. the 600 is up by 1.85% as we speak. the cac up 2%. manufacturing data a little bit weaker. let's show you some of the other asset classes. representing al big part of what we are talking about at the moment. that is something that is driving these stories for. earlier in the day, we spoke to suisse.of credit he had to say some pretty positive things about china. that seems to be the main theme. china front and center.

feels strongly about asia. it has been one of this take debts one of his big focuses. let's listen to what he had to say here it >> just say. one can sayno way otherwise the americans consumer is driving things forward. that is good news. don't have a crisis. there is a migrant issue but there is -- but there is in a risk. francine: there is the risk of a brexit. markets have a bit of excitement -- have a bit of an upside here here it not worried about oil.

it is a bit overdone. maybe a few failures. banks have a lot of capital, much healthier financial system. guy: talking about his view on what is happening in china. talking to francine lacqua earlier today. whatf the other stores is draghi had to say yesterday and today. he was on stage and may still be on stage and davos. the focus on what central banks can do next. the ecb held back on stimulus yesterday. mario draghi making it clear that the march -- that march is a live meeting now. >> as we start the new year, downside risks have increased. uncertaintyned about emerging market economies growth prospects.

volatility in financials and commodity markets and geopolitical risks and we have the power the willingness and the determination to act. to how faro limits we are willing to deploy our instruments within our mandate to achieve our objective for the rate of inflation which is below 2%. it will be necessary to review and possibly reconsider our monetary policy stance at our next meeting in early march. guy: two factors clearly affecting mario draghi statement . what is happening with the price of crude oil which is bounced. it remains at very low levels. we have this deflationary impulse coming out of china as well. the volatility being generated out of china.

the stock market story as well very much front and center there. china's vice president speaking in davos sing the authorities in beijing are willing to keep intervening in the stock market to make sure speculators do not benefit at the expense of regular investors. >> we will speed up negotiations and tear down trade barriers. will continue to improve the environment for foreign investors in china. but despite actively in global economic governance. guy: leon child speaking yesterday in davos. telling francine lacqua that china now cannot avoid a hard landing. longe chinese lifted too in theess the changeover growth model that they have to adopt from investment and export

led to domestic lead. practicallyng is unavoidable. francine: you're looking at a financial crisis that will start in china when authorities could not also deal with this? basically- they are -- the key issue is deflation. it's a condition that we are not used to. none of us have lived in a deflationary environment. the last time we had that is in -- 1930's.here it while i was around, i was not yet engaged in the markets. we just don't know how to handle it. it is a different environment. but now, we have to face it.

francine: on china, do you expect actually a hard landing? >> it has happened. it. not expecting i am just observing it. but china can manage it. it's got resources. latitude than most other countries. trillion of reserves and so on. way of, they have a to theing their problem rest of the world. it, even if they don't cap the transition right.

they can certainly continue for two or three years. guy: george soros speaking to francine lacqua last night, talking about china and the hard landing that we are already seeing in his view. it is a busy morning. did you up to speed. -- let's each of the speed. nejra: it moved new customers to a new version of its is this sweet. -- of its business suite. it -- a has canceled $2.8 billion sale. the dutch company said the deal was terminated because opposition from in u.s. regulator. try to split up its unit to focus on consumer health care.

thomas elliott was asked to step down. he was that the company for six months. the and often comes -- the announcement comes six must -- googletrolux asked is paying a hefty fee to keep an i on the iphone. over $1ch giant paid billion in 2014. google has an agreement that thes apple a percentage of revenue it generates through the iphone. [indiscernible] the company is blaming that in part on the paris harris attacks -- paris terrorist attacks. cooks representing the 11th -- >> representing the 11th consecutive quarter. declinee dramatic

across many of western europe's largest cities following the terrorist attacks in paris. bloombergt is your business flash. guy: at a turning point after reforms to the peso take affects this take effect. let's get over to john micklethwait. .ohn john: thank you, guy. i am informed -- i am indeed --ned by marcio macquarie mauricio macquarie. time echofferent this what are you going to change. call -- providential leaders.

we also believe that by our own we could develop. we knew that 20% century we have to work together. joining with the rest of the world, sharing skills and not letting ideological differences to stand in the way of the best solution. it is the standard by which we are going to work. more pragmatic and less arrogant approach. >> we need to be recognized as open. we go ahead with clear rules, equal and stable for everybody. >> can you tell me about foreign investments? you are here. your train to bring in a foreign investments. several companies have talked to hear. what is a realistic number in

terms of the foreign investment you like to get this year? >> i think we're going to be around 20 billion. argentina has decided to take the place in the global landscape. we have an important role to fulfill. when you're talking about the secondou have country in the world in terms of food production per capita. we can increase that in five years. we need important companies of the world to come andnd contract with us finance roads, ports, energy, trains. we are a huge country. it is very expensive. when you go to talk about energy

security, where in the middle of a crisis. supposing this is going to come back to us, a stable price. but alsouge reserves renewals. argentina has one of the greatest potential of wind energy and solar energy. this is an important alternative to investment. it is something we need to curb climate change. >> this is the deal you have been talking to companies about? >> we have been talking to total, bp, shell. they all come from eyes to invest -- they all compromised to invest. with companies that are willing to invest in renewals. for us it is important to be a part of this compromise against climate change. we all assume in the last --

>> this big problem to do with holdouts and the issues of the bonds. can you tell me two things? to what extent -- what is the >> we want to solve it now. we have to have an agreement with them and submit the agreement to congress. showing our willingness, we went to new york in the first 15 days of our government to start talking. we asked for a meeting in new york with the mediator. he postponed from the 25th two the first of february. we will go on the first of february to find a settlement at the new york courts, a realistic, reasonable settlement