guy: welcome to "on the move." 7:30 in london, 8:30 in frankfurt. we are counting you open to the european open. i'm guy johnson, alongside hans nichols in the german capital. here is what we are watching. risk on. equity rally gaining momentum in asia. the u.s. stocks have their best day in seven weeks. europe called higher, but it has a lot of catching up to do. trump and clinton win big. hillary and donald dominated super tuesday, strengthening their grip on their party's nomination.

has the market priced in the chances of a trump presidency? we will talk about that during the program. and lights after down to. -- after downtwon. earning, but yet to find the next ratings juggernaut after "downton abbey." we will talk to analysts who still think it is a by. this rally is gaining momentum. we saw it in asia, completely blowing past the negative watch story, coming out of the racing agency. euro called higher. hans: it seems like there's a massive vote of confidence. the chinese authorities in general have an idea of what they are doing; it is not just all sentiment. we also have switzerland -- a better figure there on the gdp, showing real growth, even with that strong swiss franc. i think that is what we will be watching throughout the morning. guy: there has always been this argument that germany watches with someone very carefully. if switzerland can cope with a stronger franc, could germany

do the same with a stronger mark? i think that is the existential question that many people think about. . hans: as we get further south in germany, you are less likely to have people except that mark. you have all those exporters, where they have elections later this month. to have munich, bavaria, a lot of industry that depends on a weak euro. we will talk about it a little later on. half an hour away from the european open. we are expecting this to be a fairly positive start here in europe. let me show you what is going on. this is the story -- click the future's box and you get the fair value talk elation. up,dax up 9/10 of 1%, cac ftse up. an aggregate positive start. hans: yeah.

it is looking like a great morning. we have the nikkei up strong, a rally overnight. shanghai composite good. aussie dollar, stronger figures coming out. overall, there is a lot of positive sentiment. a little uncertainty on the political front, but it doesn't look like the markets are quite pricing it in. let's move to what is happening in the first word with caroline hyde. caroline: hans, thank you. donald trump has firmed his grip on the republican presidential nomination. he has taken seven states as part of the commanding tuesday showing. ted cruz won his home state of texas and oklahoma. meanwhile, hillary clinton delivered a decisive performance, defeating bernie sanders by wide margins to give her and all but insurmountable lead. dy's has cut its outlook for china's credit rating to negative to stable.

the agency says it sees state that increasing to 43% of gdp by next year. they from their longtime debt rating, but says beijing's policies may slow the reform. the u.s. attorney general, loretta lynch, has challenged apples refusal to unlock a dead terrorist's iphone. in an exclusive interview, she says the company has been doing similar things for years. present, we have seen how we do balance privacy and security every day. in fact, until recently, apple was able to comply with our requests. we haven't seen that parade in those cases. caroline: global news, 24 hours a day, powered by 2400 journalists. guy: thank you, caroline.

super tuesday for the u.s. market yesterday. stocks rallied to a seven weeks high. remember, manufacturing has been leading the downturn in the data, and services have been following. manufacturing a stabilizing, which is significant. the nikkei is trading at more than 4%. i want to take you to this chart as well, as we get to our guest for the next half hour, at chuck shok shah. the u.s. markets at the top, which have been leading the charge. that there is europe just below it in japan. japan playing catch-up. the question is, are we going to see some of these markets catching up with what has happened? do we believe this rally? ashok shah joins us now. your take -- does the rally have legs? >> morning. i think it certainly does. very simply, because of the change in sentiment. they have the start of

stabilization in the oil price. that's supporting the sentiment, people earlier tying up the correlation of the energy market. of course, in all the stabilization and energy, it's helping the market a lot. of course we have a situation where everything was becoming very bearish, and we have a reversal of that for now, but the underlying tone is that the data is slightly better, not as bad as people are expecting across the board. it is not good, but it is not as bad as people think. only a few weeks ago we were talking about recession and things like that, which were very extreme. it will remain fairly poignant, the same from energy. guy: yep. >> i think the earlier talk that was discounting forthcoming recession was too extreme. guy: we are pricing that out now.

let me take you to something else which i want to counter. the three main banks in japan are calling the yen significantly higher from here. recent market experience would indicate that the market is still quite bearish on the equity rally story. this is fxfc. here, you get to the fourth quarter of 2016, they are calling you to 108. that should be a very bearish signal. >> it should be. in a way, the yen takes over the momentum, and it is very negative for japanese equities. i think the expectation of the yen will strengthen. i think it is too optimistic. i think we need to wait for the bank of japan to decide the measures they have taken to date. it hasn't really worked as intended. in the earlye

innings for the bank of japan to decide how it will evolve in terms of strategy is helping the economy, in terms of more interest rates. that, we have to wait. i think already people are seeing it will fail. i think it is premature on that side. guy: hans? hans: as long as one of the currency stories -- we see a weaker swiss franc, a weaker swedish krona, both those off the backs of gdp figures in sweden. in switzerland, it be expectations. what is going on here? is the market expecting that both these countries will keep their negative rates, because they see validation in the markets? because their policies are working? i'm expecting these currencies to strengthen with the gdp numbers,. and yet they continue to weaken puzzle it out for me . >> i think it is a difficult call. youhe currency markets,

don't always find they are responding to the short-term move in gdp. what we're seeing is a negative interest rates working, in terms of helping economic growth rates. i think that will happen as well. it is only a matter of time before the currency market truly begins to turn around and go on the back of the economic strength. what we are seeing is probably unwanted of the buildup over the last couple months in terms of the view that now needs to be changed. i think the negative interest rates are beginning to have a big impact in some of these countries, and that is going to expand to the rest of europe. we need to wait for that. it is normally quite a long leg. that, in turn, when the currency markets begin to resolve more favorably. guy: thank you very much.

ashok shah will stay with us. up next, we are live in the united states with super tuesday results. the big win for donald trump and hillary clinton. has the market priced in a donald trump presidency? we will discuss that next. ♪

hans: donald trump and hillary clinton were the big winners on super tuesday. they turned their attention to each other, offering voters and insight into what might lie ahead. >> it is clear tonight that the stakes in this election have never been higher. and the rhetoric we are hearing on the other side has never been lower. trying to divide america between us and them is wrong, and we are not going to let it work. >> i am a unifier. people will find that hard to believe, but believe me, i am a

unifier. once we get all of this finished, i am going to go after one person -- hillary clinton, on the assumption she is allowed to run, which is a big assumption. i don't know that she will be allowed to run. hans: joining us now for a closer look at the result is our d.c. bureau chief and u.s. government executive editor, megan murphy. megan, clinton and trump going after each other. from your spot in new york, can you hear the panic from republican donors on wall street just yet? >> you can hear the panic, you can feel the panic, you can see the panic. tonight and out in a way that is the worst possible scenario for the establishment. not only did you have donald trump winning, but ted cruz winning two and three. we have marco rubio, the establishment preferred choice, only taking minnesota, and it will be difficult for him to make the case going forward that he is the candidate they should follow. wall street money is scared, the

establishment wing is scared. we have senators openly speculating about not backing the eventual republican nominee. that is a crisis in a party we have not in, possibly ever. the: make a reference to whigs or the early liberal party, just to appease guy. aside from historical comparisons, when you look at the next two weeks, does anyone drop out? i would basically going to have nonstop cable chatter until march 15? >> i can't wait for the cable chatter, which we will have regardless. john kasich is going to face some pressure. he looks close in vermont, that could have been big and he could have made his case that people want a positive message. he is the one that could unify the party. he lost narrowly to trump, so he will be under pressure. ben carson -- always speculation about him. what is really going to happen is with rubio. what is interesting is that we hear he is getting pressure to

stay in from some donors, to keep the fight going, at least until florida on march 15. the state where he is from, where he is a senator, and where donald trump currently leads. done?egan, went is bernie >> [laughter] bernie is never done. bernie race $40 million in february. he raises money from small donors at a clip we have never seen in the american political system. -- healmost made obsolete has almost made obsolete the pac's we thought would up and american politics. bernie is showing that a comprehensive ground game and turning out people online to give you $2, $5, can make a big difference. is he done in terms of being the democratic nominee? probably. busy done in terms of making his message resonate, and making hillary clinton adopt positions to the left of what she would have done, on wall street, on income inequality, on social security?

those are the issues that will resonate and impacts the campaign. hans: i think that is a good point. we thank you for joining us, staying up so late. impact ofght -- the the trump phenomenon and the bernie phenomenon, regardless of how long they go, this will be a new reality in american politics. a bifurcated party, parties having conversations and debates of themselves, with each other, but they have to have their internal fights first. i want to bring up my chart, talking about what is happening in terms of global income inequality. this is the obama year. it captures the last two years of the bush and ministration. what you see is where income growth and income inequality is. is he a great deal of progress, at least in the 95th percentile. they are doing quite well. think of this chart as the obama/bernanke years. then you look down low, and you see nothing but stagnation. that is what this election is about.

regardless of who the nominees are, this is here to stay. guy: and it is the destruction of the middle class, which is a global phenomenon, that we see happening both in the united states and abroad. you look at jeremy corbyn with the labour party, you see what he has done, the ability of bernie sanders to raise money and change the dynamic at a grassroots level. that is exactly what jeremy corbyn has done with the labour party here in the u k you have seen the revolution -- people not backing the lead candidate. between aing this gap political party and the grassroots, very front and center. the thing i want to bring up is trump versus brexit. what this shows is equity volatility, the pricing of expected volatility. you look at the brexit, you look at the spike we are expecting in the ftse, and then you look at what is happening in the bottom the u.s. elections.

nothing is priced in. baby it is too early, but nevertheless, at this point in time, the market isn't really digesting this political uncertainty that we are seeing. hans: what i like about your chart is that it shows the anticipation for the brexit. you see that volatility coming ahead of that june 23 vote. that is indication that we will see markets move based on public polling in the u.k. i both know how bad polling has been, not just in the u.k. but across the eurozone. it is remarkable to me that we can have opinion polls, samples of 1000 people, moving markets as radically as your chart suggests. guy: it's fascinating, particularly given the fact that the party has proved so inaccurate in the general election. the u.s. when does market look at the election cente seriously?

>> i wouldn't expect a lot more of politic risk to coming to asset markets. we have the political mix in southern europe quite messy, whether it is portugal or spain. i think that the risk premiums have yet to reflect the uncertainty for all of us. but in the case of the u.s., i think the market has been quite complacent in terms of the pull rising through november. i think it is only now where people start to come to terms with this. we have the very beginning of the process, and the market is beginning to open up, take more seriously the probability of trump coming to power. that market volatility will rise. but remember, in the last few weeks, we had so many other concerns. in that sense, the markets have been volatile, driven by a whole

range of things from gdp data to oil price to earnings to the dollar. as things begin to calm down, yo u will see it come onto the horizon. the politics become the center stage for the next few months. hans: ashok, we talk about volatility drivers. how much is the ecb in the drivers seat? are they boxed in by the market to go another 10 basis points negative on deposit rates? >> i think so. the expectation has increased quite a lot. we've had the inflation numbers putting a lot of pressure, back into negative numbers, and the headline that just came out recently. mario draghi is again reiterating that they will do everything that is necessary to try and to obtain the inflation rate below the 2% target. it is a telltale sign that more action is in.

the markets have already discounted off the deepening of the negative interest rate, and the expectation is whether qe will be expanded and deepened. that is the big discussion going on in terms of the availability of the government bond markets tightening as or supply and more amount is on by the ecb. what stayed -- is the expansion going into the investment-grade side of the equation, where they can continue to bring the cost of capital down for the corporate sector? i think that is a big move one can expect over the next few weeks, in terms of the action that the ecb is going to have to take to get to the objectives of inflation. hans: ashok shaha. we're seven minutes away from the european equity market open, which is called higher. the asian's equity -- let's get the details from juliette saly. juliette: good morning. a positive session in asia,

leaving the relief rally, despite the fact that moody'st cut its rate expectation for china. we saw a number of solid gains on the regional benchmark index. all 10 industry groups advanced today. the benchmark index posting at its highest level in almost two months. we are returning from a holiday and rising by 1.5%, solid gains coming through on the nikkei 225, led by a lot of automakers on those strong february car sales numbers. in australia, a gdp helping the asx 200 close to percent higher, back above that psychological 5000 point level. rio tinto shares and focus, on reports that it could be cutting 500 700 jobs.

-- 500 to 700 jobs. up, really rising on that rebound in crude oil. and these are pictures of the automakers in japan, rising on that better than expected february car sales. a solid session, china having a very good session as well, shrugging off the downgrade from moody's. hans: we thank you for that update. an interesting take on what is happening. mostly a positive story, and in asia, what gives you the sense -- the similar action will happen in your? guy: you look at the futures and what is happening, and we will get a positive start. here's my thing -- the manufacturing data is part of the u.s. economy in the same way, but is nevertheless significant. manufacturing has led to the

stabilization, which could be hugely significant, because it will stabilize the numbers, and that could be the kind of basing a fact that the fed needs to lean back onto this idea. let's find out how the open will go with caroline hyde. caroline: i wanted to give you some individual movers. itv unchanged, even though the revenue looks rather stellar, up 15%. it has been a roller coaster ride for the share price because it tends to be under big speculation. they are also hinting at the third quarter that could be tougher, muted overall because it is expecting advertising revenue to be flat. retiring, whois was recently ceo -- and keep an eye on this. 125p from a rival.

guy: thank you very much. up next, the market opens. futures pointing to a positive story after a stellar session in the united states and asia. the open, next. ♪

guy: good morning. you are watching "on the move." hans nichols is in with us. here is your morning brief. risk on, the rally games momentum in asia. u.s. stocks heather best day in seven weeks. we have a lot of catching up to do, though. hillary and donald dominated super tuesday's contest. in the market priced chances of a trump presidency? beats expectations in its earnings, but has yet to find

its next ratings juggernaut. buy?is stock a hans: let's take a quick look at futures. mostly, we see green. that is with the ftse 100 and the dax. let's go to caroline. caroline: we have had a winning streak for european stocks for four straight days. can we make it a fifth day of gains in europe? risk appetites are being fueled. we are watching the unfolding of u.s. presidential candidates. we are watching in amazement in europe as donald trump and hillary clinton are solidifying their positions. japan still seems to be committing themselves to further stimulus until they hit that 2% inflation target. overnight regarding

gdp movement. the ftse 100 is up 6/10 of 1%. the miners are owning the top leader board. keep an eye on miners today. what will happen to the banks today, though? we have talk from the ecb later today. an executive board member, what will he say about potential moves by the ecb next week/ could there be more talk about a program of help to bolster the european economy? europe is pretty much flat ahead of all of those data points. once again, the correlation is breaking down between the stocks and oil. numbers in the u.s. are showing that supply is on the up. we have 4/10 of 1% lower for oil prices. igold is down and equities and money are up. let's check out the swiss franc.

will it make parity? that is the key question. let's have a look with what is going on. itv, we have the numbers. revenue was up 15%. there is a little bit of caution regarding the first quarter. the first quarter outlook muted their warning about a flattened revenue. 3/10 of 1%. is up kevin o'brien was recently the ceo of the u.k. business. darty, we're going to wait for this one to open, but it could move big. this is only back of an offer. offer.ce per share, that bid is a 662 million pound for the french electronics

company. guy: let's show you the rotation we're looking at in stocks this morning. you have got materials, you have got financials, and some of the energy stocks moving to the upside as well. utilities are th on the more safe side of the spectrum. as we get through this rally, do beaters, or do i buy the beaten up kind of safe haven stuff, like netflix? >> we are seeing the first signs of stimulation in the economy. these stocks are going to do quite well for now will step they have been very beaten down. we are worried about how big the slowdown was going to be. what you had was of the safe havens doing very well for a while. need think what you really

to do is look at the ones that have continued to grow. theuse the story really is companies that are able to grow can continue to generate gherdends, hired t dividends. the banks will remain under pressure for now. spreads are not there for them to improve profitability. as they continue to pay positive returns, the central banks continue with negative rates. it does not work like that anymore. i think the banking sector will remain lackluster until the economy is much stronger. i think the focus should be on sensitivities, but

at the same time, companies are able to grow should generate cash flow. those companies will continue to be wanted. hans: if i could jump in on that free cash flow argument, would you include the german automakers, excluding volkswagen? do you look at them and think they have a fundamentally healthy road in front of them? >> i think so. despite the negative outlook we have, i think a lot of that bad news has already been built into the price. i think at the end of the road, the concern for the spending cycle will remain healthy. the employment cycle is improving. the real wages are holding pretty steadily, growing at 1%. sectors that support the consumption are going to do very well and the auto industry is in the forefront there. we still have to be careful.

as long as -- for a lower risk investor, that sector may be too volatile for now. hans: all caps off are one second. expectations are indeed high that the ecb will step up with more stimulus after its meeting next week. negative 0.2%.to the address and frankfurt comes ahead of the central bank's quiet period. the speech is around 30 minutes time. we will stay with you here. you are our captive audience. what are you expecting from

benoit coeure? >> i think we need to wait until march until we will see real action. they will continue to do what ever necessary to get the inflation rate to go up. trajectory, we are not going to make it to 2% for another four years, at the shortest. in the meantime, i think the economy growth rate trajectory is good the cyclical method is driving the economy pretty well. think going forward, we need the cost of capital to come down for the corporate sector and household sector. the need to see the housing market stabilize and improve. we need to stabilize the household balance sheet and allow more positive sentiment to

continue forward. for important comet we need the cast of capital to come down further to enable the corporattions to enable the spending cycle down the line. guy: do we need people to have more money into their pockets? if they are savers, if they are holding any assets -- i have for this argument from a number of people over the last few days. they should actually raise rates at this point. that will allow the banks to rebuild profitability, start passing on positive interest rates. then go outers will and spend money. do we actually need to get more money into people's pockets, rather than go to negative rates? >> on the surface, the argument is seductive, but you need to look at the consequences of the rate prices on the housing market and the cost of capital rising for the corporate sector.

interest is raised more than minimal amounts, there could be a lot of negative risk. that that does n ot actually work. we need to build the confidence level. guy: the middle class is being squeezed. the middle's is being absolutely decimated by qe. >> you have the interest income continuing to decrease. guy: rich people don't spend. they save. >> indeed. of course, we know the qb e benefited the rich. that did not cascade down. the expectations were they would not spend for. politicalyneed more driven policies to balance that equation, both in taxation and

in social security. we need to keep it steady as we go. we need to continue to have the economy to create a sustainable growth trajectory.; that will only happen when the cost of capital is low enough for the corporate sector as well. the capital spending cycle is to be worthwhile. guy: we can have a long argument about confidence and qe and negative rates. thanks for joining us this morning. up next, 10 week later and still no government. the pressure is on to end the deadlock. we are live in a madrid, next. ♪

guy: 13 minutes into the session. welcome back, you are watching "on the move." i draw your attention to lloyd's. 73.6 pence is a critical line in the sand. as you can see, they are trading at 73.71 pence. she the rally on this chart here. the difference between lloyd's and barclays is of the share price. look at this, a huge sweep to the outside. with the chancellor press the sell button on his bloomberg?

we will find out. let's get to bloomberg first world news. nejra: manus: donald trump has a firmer grip on the presidential domination. he has taken seven states as part of his super tuesday showing. ted cruz one texas and oklahoma. meanwhile, hillary clinton defeated bertie sanders by white margins in democratic primaries. outlook to cut its negative from stable because of rising government debt. sticks aresays it increasing to 43% of gdp by next year. beijing's policies to support growth might slow the reform of state owned enterprises. in u.k. will have a drop investment if voters decide to leave the european union. said brexi offers

t offers a lot of risk, with very little reward. day,l news, 24 hours a powered by 2400 journalists in more than 150 news bureaus around the world. guy: thank you very much. lawmakers have been asked to join a pro change alliance to oust the people's party. there is an unprecedented deadlock in parliament. a confidence vote will happen later this morning. let's get more now with our spain reporter. what can we expect from this vote? ben: it is going to be a fairly acrimonious session in parliament today, judging by the way things have started. rajoy begin his response to

sanchez a few minutes ago. e labeled of the socialist -- he labeled the socialist bid as "fiction." sanchez is almost certain to be defeated today when lawmakers vote, but he is playing the long game. he is looking to rally a public opinion so that later down the people toan persuade abstain and let him take power. guy: thank you very much indeed. we will watch that vote later on. you can follow all the developments on our lifve bl og. i cannot emphasize this enough. this is a fantastic function. it gives you minute by minute, blow by blow, coverage.

hans: it is nice to dip in and out. it is really a functional terminal use. we are staying with the mediterranean from spain. the borders are flooded with refugees. disagreements remain on its bailout and budget crisis. according to people familiar with the matter, germany may be softening its position. this is signaling a willingness to grant some leeway. for more, let's go to alan crawford. alan, a bang up story. put it into context for us. this is a big shift for angela merkel. alan: this is a big shift. we saw signs of that in a shanghai with the g-20. scheidler was talking up the need to help greece.

america has been consistent in saying the same. now it would seem they are moving from words to contemplating giving them more what's ability in terms of the aid program. hans: when you look at potential flexibility, that gives them more money and maybe, gets the imf back involved. what still means to happen to have the imf at the table? how many summits away our we? four or five? ben: we're still a long way away from that. one of the key moments we will see is next monday, march 7. we have the unusual occurrence of a eurogroup. weave a meeting of the euro finance ministers. -- we have a meeting of the european finance ministers. finance ministers will talk about greece, amongst other topics. i don't expect a breakthrough,

but there is an acknowledgment that the two major crises are inextricably linked. guy: how is this actually playing out when it comes to greek politics? crisis narrative, this victim narrative, playing out when it comes to the greek political story and how is that feeding into the wider narrative? ben: we are witnessing an interesting phenomenon. essentially, angela merkel is one of greece's last best friends. she is constantly inconsistently fighting on their side, which of partse, is a very strange when you think of the pictures of her during the height of the financial crisis. and that is being acknowledged. one of the headlines today was

"hailing merkel as the savior of refugees." that is perhaps too strong. she is consistently fighting. she said openly, we did not try to keep greece in the euro only to cut them off. hans: we can remember some pretty nasty editorials and cartoons. right now, merkel faces some difficult challenges in the future. she looking going into this election? what are you expecting the day after? ben: the polls are mixed. to biggest of those are home porsche and mercedes. this is where people would like to live and once a dental he, it is run by a green prime

minister. merkel's party is trying to recapture that state. in some senses, it is more a measurement of how the far right afd party does in response to her refugee course, then how our own party does. hans: i suspect he will get hate mail. you get some different views here, but alan, thank you for your time. up next, we will talk about a cut regarding china's credit rating to negative. how investors think about the chinese bond market. ♪

guy: we are 24 minutes into the session. i am guy johnson, alongside hans nichols. we are higher up by around 1/2 of 1%. ac arese 100 and dax and c up by about 4/10 of 1%. what you are seeing today is beaterthea outperforming market. basic resources is actually the lead gainer. it is a mix of these markets rotating out of these areas of

safety, food, and household goods. oil performed a little lackluster this morning. put intor we may be this story is what happened overnight in china. ody's has cut his credit rating. let's go to caroline hyde with her chart for the day. caroline: even though the red flag was raised by moody's today, the market is shrugging it off. this chart shows you how much money has already been pulled out of chinese debt in january. worth,ust $7.6 billion but remember we had only just seen the opening up of the chinese market. the pboc is trying to get investors in and reduce the quotas.

as outflow in january is continuing. why? it is all about the fx market. this is what pimco decided. even though you can get 2.9% on a chinese 10 year debt, we are not willing to take that risk because you can't hedge against the depreciating lines. hans: is there any chance for kerrcarry trade in china then? at what point is there any sort of carry trade? caroline: when people start to decide whether the risk is appetizing or not, that is what is interesting. the philippines' credit rating is actually five rates below that of china. but the credit default swap paints a different picture. the cost of insuring chinese debt is far more than the philippines. it is less risky than china,

though moody's does not seem to be singling that. guy: up next, we're going to talk itv. ♪

guy: half past the hour. will come back. it is the banks that are leading eses by the 6/10 of 1%. caroline: wanted to focus on those miners. these stocks are on the higher side today. anglo-american is having his best day for the month. we are at our highest levels since november for anglo american. the reason seems to be optimism and the buying of metals. the outlook for china seems to

show promise of the stimulus coming from japan. that is boosting the economy until they hit that 2% inflation figure. and of course, better data out of the u.s. and europe is feeling those slightly beaten up stocks. the miners lead the charge. and only downside, medical performers. -- and on the downside, medical performers. third-quarter results are very disappointing. they are missing analyst's estimate by 20%. overall, they are worried about sales that are particularly weak. elexa was beat up today on the stoxx 600. itv is up by 3.5%. ity actually managed to beat

in that respect. -- third quarter earnings they are expecting flat advertising revenue going forward. although, they are looking optimistic on the second quarter. why then, the sudden worries regarding selloff? i believe that to you. -- i will leave that to you. guy: thank you, caroline. the euro era urgently needs higher growth. i don't think anybody will disagree with him on that front. let's get more on itv. revenueany posted better than the previous year. but does that outweigh audience share concerns, advertising concerns, the end of "down ?own abbey

you are one of these guys here on the screen. you are not in the minority. why the buy? --sn't change offers today does that change offers today? if you look at the reasons why we are a buy, free television. it puts us in a much better position. that has been reinforced by the agency's mark up. itv's position in the u.k. market is strong. it has a strong balance sheet, good on my revenue growth, and good assets. all the fundamentals are there and that has been reinforced by the results today. the results show a consensus at all levels. if you look at the outlook for 2016 it is very positive. what seems to have happened

today is people got very much fixated on short-term trends, which quite frankly, is wrong. guy: the stock is down, as you said. advertising will pick up. that seems to be the concern of the moment. -- at the moment. the short-term advertising story is not positive. the market is now fixating on the short-term. >> absolutely. itv said that in april they would be down 5%. this morning, people latched on to those numbers. if you actually look at the statement for the entire year, they are actually quite confident they will outperform the market. year, they are expecting healthy market growth for itv.

i don't think there is a particular concern about advertising. you tend to see this with advertising stocks, anyway. if you look at the spanish tv advertisers, everybody got fixated on january being down. then, february was up in double digits. people can get too much into the month by month details. the crucial information is the full year. hans: i hesitate to ask a question about "downton abbey" because i am only on season four. oilers to both of you -- no you.ers to both of when you look at some of these production houses, they have these big hits. then, there is a big question of what comes next. to what extent can you bet on the creativity of a company like itv?

>> that depends very much on the individual shows. start,n abbey," at the nobody expected it to be such a big hit. you can look at "beowulf." that has not been so great. the key is to look at the portfolio. itv estimates that the global content market will grow about 5%. if you actually look at the width of the concept they have, they have very good content in drama, reality shows, and other formats. the u.k. market is seeing this as an absolute must-have market to go to buy global broadcasters. the two markets to go to our the u.s. and the u.k. that puts itv in a good position longer-term to actually gain a good share of that.

he will always have things going up and down because it will depend on the commissioning by various broadcasters in the world. the long-term however, looks very good. it is not just broadcasters. platforms, such as netflix, need content as well. finishing and" is that is a negative, but they have plenty of other content they can use. hans: when we compare netflix to itv, does the plot look more like a bronte novel, or is it more jane austen? >> i am trying to drag up my memories of all of those authors. i think what i would say here is, if you look at what is happening here in terms of their content, take five years ago where they were. their content division was not firing on all cylinders. if you look at where we are now, the internal side of things has been much improved. they made a number of

acquisitions, particularly in the u.s. market. content can be similar to the games market. the key thing here is the width of the market content. guy: does that mean they are not going after mma? and are they still an mma target? >> when you add up the special dividend and the ordinary dividend, the total dividend i is trading close to a 7% dividend yield. it does suggest that the major mma deals are probably not on the agenda. dividends -- we do expect those to continue for the deals. mainly, we focus on the content area. guy: i'm going to ask you,? why

hasn't somebody bought this yet? >> look at the entire situation. the company is in a very good position and it has great assets and is in a great market. if you look at what is happening generally within the tv space, people are playing their options at the moment -- people are weighing their options at the moment. people still have question marks over the free advertising model. it is a model we feel comfortable with. guy: you want content, don't you? >> absolutely, but don't forget the core of business is still tv advertising and broadcasting. if you look at that market, it is still doing extremely well. guy: it was good to see you this morning. plenty of head room on that target still. thank you very much indeed. hans: guy, we have breaking news

here. d, but he saysa du the ecb is studying how other jurisdictions, meeting japan, use negative rates. ecb is said the looking at other jurisdictions. he also wants to take a look at mitigating negative rights and the effect they have on these banks. interviewed him, he hinted that he might be open to some sort of negative rate tiered structure. they are studying japan. coeure is on a fligh he t. he will give editorial regarding negative rights. guy: that decision is going in

the exact opposite direction. the wayt working in they had hoped, assuming that kuroda is fighting a currency war. hans: i guess, but that is only if the only game you are playing is the currency war. the ecb is talking about price stability. $1.10 is fine for the german exporters. if the euro strengthens a little bit, the economy will not destroy your exports. their issue right now is making sure the banks are stable. guy: and makes you wonder how far they are going to go. that is certainly something to pay attention to. hans, we will come back to you. also up next, does safety trump

security? the u.s. security general weighs in. ♪

hans nichols here in berlin. revenue ofhas posted

16%, compared to the last year. shares are trading lower the smarting. rolls-royce has named a representative from capital management to its board. will join the board immediately and become a member of the science and technology committee. valueacts is the biggest investor in a company that has its stock decline more than 25% in a year. steinhoff international holdings made an unsolicited 662 million pound bid for the company, that smack a deal with back in november. hans: loretta lynch has challenged apple's refusal to unlock a dead terrorist's

iphone. she said the company has been doing similar things for years. dowe his seeing how we everyday. until recently, apple was able to comply with that request. they have some of the strongest security out there. hans: caroline hyde joins us now. what is your take on that? caroline: interesting. she was talking out against what the decision has so far been to not allow the fbi into -- well, not building a way to get into the operating system. she says, the encryption has only recently gotten this tough. we used to be able to do this. that was one of her arguments, but also notably she is saying, should we really allow one company to decide this argument? she was trying to be quite

forceful when actually, the u.s. government and fbi are on the back foot at the moment. apple just won, of course. they did not break into the phone of a drug dealer, a very similar argument. this one involves a terrorist and the tragic killing of 14 people in san bernardino in december. in red lunch was speaking california and washington. -- loretta lynch was speaking in california and washington. we heard from the fbi director. he says, they are all the good guys. >> there are no demons in this debate. the companies are not evil and the government is not evil. we have a lot of good people who are about things. we all care about the same things. the companies care about public safety.

the fbi cares about innovation and privacy. we devote our lives to stop people from stealing out renovation, stealing our secrets, and hacking into our devices. caroline: that was james comey at the congressional hearing, begging apple. he says, take away your guard dog. let us pick the lock. guy: how is apple responding? caroline: apple is sticking to its guns. counsel says, this will hurt iphone users. >> if what happens here is that apple is forced to write a new operating system to degrade the safety and security in phones belonging to tens or hundreds of millions of innocent people. it will weaken our safety and security, but it will not affect the terrorist in the least. caroline: the fbi has that court order.

they want to get into this iphone of this so-called terrorist. interestingly, apple is still saying no. apple says, this is not the right way to go about this. we should not be doing this or the courts. we should be going to this argument via congress. thetta lynch thinks courts are the best way to do this. guy: up next, expectations are high that the ecb will step in with more stimulus. we are keeping a close eye on benoit coeure's the in london. ♪

-- hans: we'll come back to "on the move." the dax is up by 1%. with the 100 is up by .56%. by .56%.se 100 is up talk us through benoit coeure's comments. guy: let me read you a chunk. this is him speaking. we are monitoring the bank risk on a regular basis. we are studying what is used in other situations. i also think we need to qualify the narrative.

challenges flow from our monetary policy. they are clearly worried. he saw that yesterday. things the ecbo wants. they want to achieve lower rates. they don't want costs to rise for spain, italy, portugal, or greece. the ecb has had more success in weakening their currency in the meetingo next week's than the bank of japan has had. guy: i will take you to the terminal now. $1.08 dollar yen by the end of the year. >> the proof will be in the eating of the putting. so far, the ecb has had more

success than the bank of japan has had. the make of japan will be flabbergasted. the ecb is probably ok with the $1.08 and all. stronger far higher or can we go for the year with the ecb? whenever you ask them about currency, they say, no, we never look at currency. where do you think they want it? >> i think they are probably ok with it between $1.05 and $1.10. they don't want it falling off a cliff, but they also don't want it trading at $1.20. that would probably like to walk it a little bit closer to parity, but don't want it going there quickly. guy: how big ia day is a going to be this year? >> it will be important this

month because we had some data yesterday that was not as bad as what the expected. dudley is talking about losing confidence in their ability to get inflation back to the 2% level. so, data becomes important. guy: the manufacturing data was really interesting. what you can see on the charts is manufacturing pmi's dipping and the services following the pmi data down. services should follow suit. that is great news for the u.s. economy. >> the manufacturing economy is still contracting. still that get above $50, we are reading too much into this. it is still contracting. guy: when you wrap all of this together, where are we? where do we see the biggest anomalies?

>> everybody is still coming to terms that the fed said they were embarking on a rate hiking path. since then, those expectations have been reduced considerably. we need to come to terms with where the fed is. and then, throw some election uncertainty into that and it becomes an interesting story for the rest of the year. hans; the you see the rest of the year going without a rate hike, then? >> i would be surprised if they hiked rates before the election and that is what market pricing is saying. we have a 65% chance of a 25 basis point rise in december. guy: it is interesting, the markets are pricing in so little volatility surrounding that election. there was somewhat around brexit. thanks very much indeed. world's largest money

manager says brexit offers a lot of risk with little reward. stay with bloomberg for blackrock's report. "the pulse" is coming up next. ♪

guy: europe rising. the global rally maintained momentum on faith that the selloff was overdone. super tuesday for trump and clinton. the front runners strengthen their grip on party nominations. thethe market priced in possibility of a trump presidency? blackrock predicts a brexit would be bad for britain. we speak to one of the authors of this report. welcome to "the pulse