jump ahead of the opening. 2.3%.crude higher by $34 a barrel. european equity futures look to decline this friday morning. that's also for two caroline hyde. could we and on a high this friday? we are down 1% on the week. could we eradicate that with today's risk on environment? japan takes the genetic steps to fuel volatile trading. 1.9% in volume. you saw wild swings. today we see an upward trajectory. energy stocks on the rise. it is all going to be about the hard-hit falling gas energy companies as well. we are opening on the high when it comes to equities.

on the high side when it comes to bonds. how many? we're in the record zone at the moment. for germany, the dutch and french. we're seeing record low yields. -- keep an territory eye on the debt market. money going into bonds as we saw yields in japan died lower -- dive lower. up we go. we see the yen fog. the dollar higher, the yen lower. as i said, oil trading got much higher today. that is on the back as the talks from opec in russia. could they come together? 2.2%. seeing brent up let's check in with those movers this morning.

we've got results and changes at the top. up.a samara sky, 1.5%. more as rupert -- we're going to wait for the message to open. -- gamesa to open. back to you. guy: thank you very much. let me get to this chart. this chart here absolutely spiking. zooming ahead. consensus is what bernstein said this morning. leading the stoxx 600 now. let's find out what is been going on in terms of asian trading.

shery ahn is standing by. give us the full impact of what the boj did early on. day.: it was a wild investors struggling to decipher the meaning of the boj's move to adopt negative interest rates. we have the japanese stocks soaring and plunging. they are back up to finish 2.8%. some analysts say the lower rates will support stocks and the economy. given this is a first, we need to keep a close eye on the impact of this move. negative rate decision sending yen tumbling. the japanese government bonds falling to a record low. these dramatic moves in the the batchso as we see of data coming out of japan, including consumer prices. industrial production, household

spending dropping. the rate holding steady in december. it was the busiest day in japan when it comes to the earnings season. .t very dramatic day in japan a bit more stability in china, because markets stay in positive territory -- stayed in positive territory throughout the day. up hunt sing index also 2.5%. people saying this month set off was -- month's selloff was overdone. we also have the -- john, back to you -- jonathan ferro, back .o you as guy said, not quite shocking all.

higher. here in europe, ftse 100 up by 18 points. we're talking bank of japan. kuroda surprises the market as he adopters -- as he adopts and david rate -- a negative rate strategy. -- coordinated output cuts can be on the table. they roll-on in russia rolls on. ♪ guy: strategist at jpmorgan still with us. what is dominating market thinking. is there a danger -- this is a store we talked earlier on this week. the ecb do a little and more to weaken the currency. they push the dollar higher. you can argue that since we got

into the story toward the backend of last year, the one consistentlys been there has been the summer dollar creeping higher. that had a massive effect on commodities. you saw it in the apple numbers. you see it clearly in the corporate story throughout the world. and the ecboes that does more than the dollar. ,> what you have seen the past the dollar typically rises into the first interest rate hike and then begins to selloff. people have use history as a guide. the monetary policy divergence world we are entering into is unprecedented. history goes out of the window a little bit. i don't think it will be as rapid as it has been. i think it will move higher and will stay strong throughout

2016. tom: that is the consequent of the fx market, the eurozone debt. a third of a eurozone debt carrying a negative yield. where are we on a 10 yield -- on a 10 year? these are big moves in a bond market. what are the financial implications? you read the statement from the boj, they actually site the profitability of japanese banks. what does this mean for the financial system in japan? with yields that low? alexander: it is hard to draw meaningful conclusions. we've only been saying it and isolated number of cases. negative rates usually does weigh on bank performance. trying to put money on deposit in being charged for it.

-- trying to put money on it and being charged for it. , youur major institution cannot stomach those negative interest rates. it will not help you meet your pension obligations. that forces you up. jonathan: i like that story. i like that. guy: ice -- i set 30 deutsche bank press conference. through the deutsche bank press conference. alexander: they cannot go much lower. turns out that is completely out the window here and we can move deep into negative territory. people will continue to purchase it. it makes sense when there is a central bank in the market. seeing a lot of bonds who are

not targeting a profit. it could go a lot lower. the boj cited they are going to go deep into negative territory here it -- negative territory. there is good be more pressure building. jonathan: let's wrap up the last month. the federal received leading out of march. boj going into negative territory. a big conversation we have had over the last month is where do you go for safety? the competition we had yesterday is going to yen and the options market. that correlation with equities markets has been tight. given the boj signaling, i wonder if that is off the table and where do you go if you want a hedge risk. it is not in the yen, given what the bank of japan has done. it is not in the swissie. alexander: it is not in the euro either.

gold has been doing particularly well. you go back to the heart assets. -- you go back to the heart assets. guy: what about credit? with the tourist and high-yield sector, i am nervous, particularly there is energy exposure. you got somet, and areas there that are attractive. guy: do you think central banks will step into the space as well? how much of it is under negative now? they are running out of things to buy. alexander: if you look at ecb, they are running out of the government bonds sector. they've got a ways to go before they start purchasing high heels. it forces people into it. that is what you are starting to see you that is a keep -- that

is keeping a yield on these -- that is keeping a lid on these yields. some people do not understand before jumping in with two feet. there are risks and the central banks are walking the market. i believe we are still some way off purchasing high heels. guy: thank you very much indeed. up next, speculation on production cuts. russia says it is possible. opec says it is not. who is right? we will talk about that next. ♪

jonathan: hello and welcome back to bloomberg tv. this is "on the move." alongside guy johnson. it is risk off. ftse 100 up by 1.44% to the two biggest movers, and core -- glencore, anglo. the dax up by one at 229 points. -- up by 129 points. to four,vote of five policy decision nevertheless than a move by the boj. the dollar yen jumping around. try to make sense but they tried -- what they did. dolly yen up by 1.6% through 120. guy, 10 year yields, 10 basis points reminiscent of the move in germany around this time

last year. just a couple of months away. april 20 15, 5 aces points. we talk about bond market and crude. let's cross over to nejra cehic. nejra: the yen tumbles. the japanese bond yields tumbles to records after kuroda adopted negative interest rates. the bank of japan's decision halted a yen rally that was threatening to be the strongest since kuroda took office. >> negative interest rates policy doesn't mean we are at a limit. this adds another option to interest rates to incur policy. -- ction in interest rates nejra: china's have risen for the first time in four days. bank also injected more liquidity into the financial system to avert a cash crunch before next month's holiday.

gains were led by industrial and financial companies. oil has extended gains from the highest close in three weeks after russia's energy minister said opec may need to discuss output amid a slow and prices. no talks have been scheduled to a rock says saudi arabia and russia were more flexible about cooperating to produce output. journalistsur 2400 from the bloomberg first word desk, i am nejra cehic. alexander dryden from jpmorgan so with us. someone talking about a massive move in brent. 33 or something. in percent just terms, it probably is -- in percentage terms, it probably is. does brent had to stabilize a little bit? if that correlation started to

break down a little bit -- i am a little perplexed. oilander: frankly lower driven by the oversupply rather than lack of demand is a good thing for the global consumer. it can do one of three things, you can i do save it come spend it or use it to pay down debt. all three of those are good things in the long run for the global economy did i don't think you need to news -- i don't think you need to use a canary in a coal mine. i think the lower oil prices good for the global economy. that relationship should again to break down after a bit of stability comes in under oil prices. jonathan: the market has levered -- the yenn the growth story. the commodity boom. that being the fundamentals of the market. to a huge extent in credit. you wonder if the market is the

real thing that is going to happen here. the economy is kind of secondary. the market is built itself around the commodity china high growth story here it alexander: i think that lays out and some commodities. i don't think the china story is quite all the same. i am thinking of the -- your ofy -- china makes up 50% world demand and metals. oil, not so much. it is driven by something different. that is where people need to start segregating oil away from the other commodities. ronan: volume would be important in china. it stays pretty strong. let's talk about yesterday's price moves. i don't want to talk about percentage moves. i was decorating on the bloomberg, if you average out the last four days, we average like a 4% move on a daily basis. if you include the friday 10% pop, it is bigger than that.

what you make of that? alexander: what a lot of hedge funds and investors were positioned with short oil. what you're seeing is some signs that will be reaching a point of stability in oil prices. you are seeing a rush to cover your shorts. what it would say is this environment, i am a bit skeptical of russia's ability to meet production cuts. a lot of russian production is done by private companies. it is not like saudi where the government has control over production. it doesn't make a lot of sense for the saudi's to be agreeing it doesn't make sense for that saudi's to be agreeing to production cuts. you can see oil still bouncing around for a little bit longer. --shale turning up yesterday

jonathan: shale turning up yesterday. alexander dryden, it has been fascinating. thank you for joining us. although market strategist for jpmorgan. up next, amazon fails to deliver over the busy holiday. -- or the busy holiday period. we will talk the final bouncing costs and boosting sales. the bank of japan goes into negative territory with interest rates. the ftse up 75 points. the dax up 121 points. ♪

guy: welcome back. you are watching "on the move." the equity markets here in europe are on a tear the seat up up 6000 -- the ftse 100 6000. after-hours --n --res taking in after-hours caroline hyde is here with more. how bad were numbers? was it bad numbers that sent the stock down? think it is frustration. the profit is not coming through quite yet. it is another day of jams. that 13% decline rather over blows it. the stock was up 9% yesterday.

the stock is up 25% last quarter. it doubled last year. phenomenal story from amazon in terms of revenue. sales are driving forward. the problem is he keeps on reinvesting most of it back into the business. you're seeing operating costs rise 21%, why? because you have the film a profit on the rise. it costs money. they are plowing into new territory. new gadgets. he still wants to reinvest in the business here at it is wearing thin on some investors. jonathan: guy johnson just put up the amazon chart. last year, 118% move. again.e started to spend this moves thing on. the story with amazon, investors if you trust him, let him reinvest the cash of the balance sheet. he delivers.

the stock up 118%. imagine if an activist was on the board of amazon. hunt or be hunted. alex, tell us about a new fund that is doing a u.s. thing in europe. alex: not new. the fund is 14 years old. [indiscernible] in the past year, they've built up sizable stakes. the big german industrial, abb, a couple of others, volkswagen volvo becoming a big player in the region. guy: to the operate differently? -- do they operate differently?

alex: they do the same thing in that they buy a stake, but the investors have to listen to them. in europe, you can get a supervisory board. that allows you a little more access into the company. they can try to work with the company to achieve their goals, to try and improve performance. the problem comes if the company doesn't want to do what they suggest. they will start the phase known as the hop, where they will go out speaking to other investors. we think these companies are -- a be and tong see wrong. jonathan: everyone starts jumping up and down and talking about it on twitter. yahoo!. they get this big voice in the u.s. the line is you want to come over and influence what the company is doing, by it.

do not mess around. jonathan: let's get back to business. the boj negative rate surprises the market. that is next. ♪

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jonathan: hello and welcome back to "on the move." we are 30 minutes into the european trading session. he is a picture of the -- the ftse 100 coming off a high. the dax, a similar move, 130 points. .tory you'll find out of japan the bank of japan going into negative territory. interest rates. a surprise move. a vote of five to four, but a decision nevertheless. here is your moves and dollar yen. the market took a while to digest this. dolly yen through 120, touching 121.

120,e dollar yen through touching 121. 13 basis points lower to 0.1%. -- 34, 50 6 -- 34.56 a barrel. caroline: big moves for you. -- gamesa, it could be under speculation. up 11%. they want to combine their renewable energy force. the drive toward renewable energy. this.ts are digesting all of this pushing back as another players up. we look at potential m&a in the renewable sector. bank has been hired to

help. gamesa your best performance. jcdecaux, they are impressive overall good organic revenue. up 6%. driving people you're up. one of your best performers. on the downside, your international -- yara international not looking so good. warning us about operating profit going forward. they drop in fourth-quarter. one of your worst performers. back to you. guy: fertilizer makers. don't want to waste my time. caroline, thank you very much. boj has decided to adopt negative interest rates while maintaining the banks record

asset purchase plan. kumada.oined by mikio good morning. what is the objective here? the main objective was to signal that he is still in the game. he is a still -- he is ahead of the curve. he is willing to do more. in that sense, that was a nice surprise. i think we saw in the short-term hopefully for a couple of weeks, we will meet that because the markets have been damaged by the first three weeks of january. i think it is not just about the bank of japan now, it is also about what the other central banks will do. it is a global story. the problems we have in the markets rather than just japan. we just confirmed that we are going to stay in this easing mode for longer.

jonathan: i want to talk about what you said, the other central banks. should we think of this as a little more regionalized? the chinese currency versus the japanese currency is fascinating over the last month it -- last month. kuroda fights back. the regional tension is what we need to be paying a lot more attention to. mikio: it is an issue, the chinese economy has been slowing for years. it is a structural issue there. that thevery little other central banks can do about it. what i meant is more -- we had a regime previously that was quite a bearish regime. more recently, we had japan and europe recovering here at if

these three regions get there -- stay ahead of the curve in terms of monetary policy, we could of been ok. the hands are tied if china doesn't find a solution to balance its need to slow down and keep stability and improve communication of its policy. there is little that japan can do about it. guy: i thought central banks would test were meant to have two, three, five year horizons. this is kuroda being freaked out by three weeks of turbulence on capital markets? mikio: freaked out is too strong a word. you can take a longer-term view which is why he is reluctant to do more, because the data out of japan is not that. , he outlinedt week

his views. the problem is in the real world, market turmoil and volatility does affect the real economy eventually, because even the most unjustified fears can turn into prophecies. if the central banks wait until it is visible at -- it is visible in the data, it is usually too late. we are in a carry a situation where this is a banks have to think very creatively about what that's about signaling that their intentions are -- about signaling what their intentions are. let's see what mr. draghi can achieve. also ms. yellen in the u.s.. jonathan: 10 basis points on the jgb. the two year yield over in germany, new all-time low,

negative 0.4 percent. the negative japan doing more. what struck me, the first thing i did when i got into the office, would go back to april 13 -- april 2013, it was a 2% target on a two-year horizon. they have not got there. when is it too late? mikio: i am not sure i understood which a question -- i am not sure i understood your question correctly. i believe oil was significantly higher at the time. this is something -- this is this is a supply issue by the producing companies. -- producing countries. i do not blame them for meeting the target as far as japan is concerned, if you look at the under fly that's the underlying inflation rate. it is not reaching it as soon as it hoped initially, but it is still moving in the right direction.

in terms of the mystic reflection, i don't think -- in terms of domestic reflection, i don't think japan has a big problem in terms of whether the policy is working. what opect control and other producers of oil decide to do with their supply. -- jonathan:annot they cannot but let me -- they started to qe program, they had a -- if you can't get back to your target, they are very worried about what is happening with inflation. expectation is becoming the anchored. at what point is credibility a real issue? at what point does become an issue? mikio: that is right. yes. it would've been nicer if he had taken -- or taken the whole mile. if the whole team went for proper qe expansion rather than

the signal. months, if this slump in commodity prices, this will be a theme increasingly in markets about credibility of the central bank quality. ronan: it is great to have you on the program this morning. guy johnson, signaling to the bond market again. guy: it is a ripple effect. that is the japanese story this morning. thato this, i've got to do . this ripple effect that we continue to see it -- we continue to see. -.47% here at it is a race to the bottom for the 10 year. the japanese seem to be quitting at the moment. the german still had a moment in front.

gentle when you bring up the front and. -0.47%.t -- zero.elow if you on the bond market, just on a citations by fund futures, 14%. guy: we've got some news coming out. let the update you. 2016 to follow by 60% to 7% -- to 70%. iran shoddy goes on is shopping trip. in europe. we'll have the details from paris next. ♪

jonathan: good morning from the city of london at a afternoon to those of you in asia. a busy day over in asia. equities here in europe, the ftse 100 up by 56 points. the dax up by 96 points. loss of action in the bonds market. two-year yields in germany all-time lows. we will continue the conversation. let's cross over to nejra cehic. nejra: thanks john. was $997 million in three months at the end of 2015. the play station game business

up to offset slowing demand. an extendeds sell trade after sales and profits all amid estimates. expenses jumped 21%. amazon stepped up spending on new technology and delivery services. the share slightly raised more than $5 billion. sky has announced that james murdoch should return as their ceo. the company'sas -- up 12% at the same time that last year. mesa -- and gamesa -- according to spain's -- the german engineering group held talks. that is your bloomberg business flash.

guy: it is been a successful week for iran's rouhani. he sent off deals worth $33 billion in paris. connan is inroline paris. yes, planes, cars, luxury products. these are all of the shopping list of rouhani during his visit in paris. parisrst deal signed in yesterday morning. it is an old brand in iran. iran was there second-biggest before they france left the company in 2012. than $400 million. continuing to produce some cars under the -- during the

sections. they were older models. i spoke to the ceo who told me it was a difficult agreement to be signed. cooks sold more than $350 million--what some more than threads 50 million cars and iran so it was quite significant. towill allow us to move up 300,000 vehicles here it -- up to 300,000 vehicles. know you like i your planes. airbus was the biggest contract signing. more than 100 jetliners, $27 12lion contract including superjumbo's. iran couldct with bring as many as 4000 job creations. the planes will be delivered as soon as this year.

crisis, despite the oil -- the big signature party. crude fromto buy iran in the future. europe used to be iran's second biggest oil customer before the sanctions. in one shoply street for the iranian president when he comes to europe. i met one man from the iranian delegation saying he wanted to sell some makers in france. fascinating. joining us from france, thank you very much. diplomatic tension. franceh between iran and -- the french refused to take

mine off the menu. guy: you've got to extremes. the french, a meal without wine is not going to happen. whereas the iranians see it differently. >> it doesn't show you. coming up spending a lot of money. interesting how this comes up in certain little things. it is the little things that matter. jonathan: the cultural approach. the italians covering up naked statues with cloth. guy: what has happened recently in france. the cultural thing coming into play. can we talk about that during the commercial break? guy: bad news with local growth. we'll talk about that when we return. ♪ "on the move."

jonathan: hello and welcome back to "on the move." the shipping industry says the world economy is post. caroline: this is a great piece from mark gilbert. he has been with us for decades. i wonder if marcus turned the volume up this morning. caroline: this was a story you pointed to meet.

we have to show one of these charts. akin 2008, mark gilbert did some uncovering. he found that although sales have dropped off a cliff, down at 99%. he showed how the market was grinding to a halt. check out goods being shipped from shanghai abroad. from china as a whole. you are seeing it down 40%. goods being shipped to u.s., europe, africa. at u.s. and european trading, again spelling trouble. volvo is down to the lowest in two years. purest who are looking at the program, a huge overcapacity. guy: i could show you this charge which could show you something that could tell a

similar story. look at what happens with the u.k. economy and look at what is doing the heavy lifting right now. the world economy is about industrial goods 100%. you look at what is happening in china and you look at the reorientation their time to make their. news --sn't come to this doesn't come as news to is it as bleak as we are making it out to be? caroline:e number -- apple numbers this week. luxury is doing badly in china. starbucks isn't doing badly in china. maybe this isn't quite as worrying. -- of the charts guy: is that a value chart? it is a volume chart, not a

value. know it i think there is a big point to make. certainly the industrial side of the economy is suffering. you should not make the assumption that that is the economy. caroline: in 2008, we knew there was a bank and financial crisis. this time, is it really china? what is really rattling the market? guy: debt crisis. walk your way through the story and you come across a number of potential problems. caroline, thank you very much indeed. let's suck about the day ahead first up, -- let's talk about the day ahead. first up, mario draghi. we get a rate decision from the russian central bank. we get a reading of the u.s. gdp.

on yourdo that later own bloomberg television. ,onathan: here to join us now richard jones. richard, japan, we got to start with the bank of japan. what is your take away? richard: the most interesting thing, david inglis tweeted the bank of japan's gdp forecast, i think it is 1.1%. 1.5% for 2016. these gdp forecasts are usually on the bullish side. that is a worrying symbol. guy: what they are not doing is reacting. now they're looking at the number and saying they need to get the monetary policy geared up for that figure. what are they tried to do here? risk of a probably get the

feeling that we haven't picked already in gdp growth, where near peaking. they need to be concerned when the next slowdown is coming. jonathan: with that inflation number comes out of europe, do you cover your eyes? richard: i spoke to a traitor yesterday and he says you look at the german numbers and the numbers he is focusing on. they were quite negative. draghi told us the year on year affect. this traitor was focused on the number -- was focused on the month on month numbers. central banks find it much easier to hit that inflation market from a top -- from the top. guy: it is would be interesting to to see what the rate is. something that has been happening for years. why are we still here?

up .9%. trading that is the equity market reaction. we are treading around the 6000 level. you can think kuroda for that. ♪ the only way to get better is to challenge yourself,

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francine: the bank of japan takes rates negative. 10-year yields hit an all-time low in japan. oil extends gain as a country -- flies to affect talks. amazon does not deliver. ime holiday as the online retailer misses estimates. trading.nk in european so, welcome to "the pulse" live here in london. i'fr