thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. wilton two on the move. -- welcome to on the move. ime anna edwards along with hans nichols. financial markets have it wrong. that is the opinion of rosencrantz. calling them too pessimistic. first-quarter sales. fueled by demand for its camp for drugs -- camphor drugs.

netflix shares plunge. anna: good morning. the relationship between oil and equity is intact in today's trading session. firmer pricing in the oil market. down a little earlier it up again now. -- a flaw under prices. if you are argentina, this is their opportunity. i want to talk about the price of wine. will we get a better deal because of argentina returning to the bond market? i know you think of more high-minded things. said plenty of

conversation. -- fed conversation. get to the european equity markets. and the futures, what they are telling us about where we will open. 28 minutes away from the european equity trade open. expectation for the future of european equity market. once we open up. a little weaker than that for the ftse 100 and stronger from germany. we could get the best game coming through from the german market. futures are still finding their feet at this early stage. hans: we have just seen an brent. in the yen looks weaker than it was earlier. it is up to 1.08. asian markets are still on a

tear. .ollar-korean won we didn't see any major moves by the central bank. that was a surprise. let us get the rest of the bloomberg first news. yvonne: brazil's embattled president continues -- says it she will continue to fight. recep addressed the nation one day after they -- the brazilian president -- reiterating she has done nothing wrong. -- ask thee leak legal people to prove it. even after signing, all of the legal experts. that ie first knowledge signed, i have a clear conscience that i did nothing even legal. -- that i did nothing illegal.

the most popular fast food chain in the country. chinesetium backed by investment has expressed interest in buying a majority stake. it runs more than 7000 kfc's and pizza hut eateries across the nation. the choice for a bank of japan board position. that becomes vacant in june. she would be the only woman on the board. the change comes as the boj negative rate strategy generates controversy at home and abroad and with inflation for from it 2% target. global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. you can find more stories on bloomberg at top . hans: as we were talking about

federal reserve, the bank of boston residents is the markets outlook for interest-rate is to dovish. >> because the economy is stronger, the economy is fundamentally sound and we will have conditions where gradually raising rates faster than financial markets expect would make sense. he added that as shallow path of rate to increase would risk high inflation. anna: a shallow path of rate inflation. how about no rate increases? ofare joined by the ceo asset management. thank you for coming in. you don't expect any more rate hikes in the u.s. we have had the announcements in december where markets were 3-4 rate hikes on the

back of what yellen has said. coming out.ents the reality is that you have to look at earnings numbers. they have been reduced by about 9% year on year. revenue is much slower than anticipated. things are not looking great in the u.s. couple with a strong u.s. dollar which is not expecting. positivehas a more picture of the economy. he says if interest rates stay on the path is implied by market expectations that inflation would get ahead of itself. do you share that view? when present across the board. inflation at 2%. with such a disappointing earning numbers. they have been on the decline for some time. it doesn't make sense and is inconsistent with the marketplace. where do you go for yield

them? -- yield then? i want you to tell me that you are buying cases of argentine wine and bonds. i buy the wind it would be to drink and not as an investment. to get good deals in this market is challenging. the fixed income market, it makes no sense to be overweight. it makes no sense to take credit risks or to take interest rate risk. we see this as a carry trade overcast. wewe want to pick up yield are going into the global equity markets and picking up reasonable dividend yields. anna: stay with us.

switching gears. sticking with central banks. options in the face of a brexit. quantitative easing to rate hikes. survey, many say carney will have to intervene if the u.k. votes to leave on the 23rd. economists do not agree on what shape those measures could take. the investment community is incredibly divided on this. a range of views of tools that the bank of england could employ if we saw a brexit. how are you preparing the business? >> our basic case is no brexit. the argument for brexit is nonsense and makes it no sense. we are very dependent on europe and london, the u.k. will lose its dominant as a financial center of the world is such an event was to take place. there are massive financial services that trade with europe.

we all saw the treasury numbers talking about gdp impacted by leaving the eu. i have not seen an economic argument that supports brexit in any form whatsoever at the moment. hans: how much of his -- how much is it affecting euro-dollar. when you look at euro-dollar, how much of it is fear of brexit wing on it? --waiting on it? weighing on it heavily. the market is telling you that brexit is not an issue. story. an media if you look at the moment, the euro is some 13% undervalued on the ppp basis.

we would expect to see some dollar weakness going forward driven more by u.s. interest rates than the brexit story. anna: i was interested to see that ahead of the ecb meeting, we did a survey and they do not see any big moves in the ecb and till september. -- until september. up next, we speak to the ceo of roche. that company reports its sales numbers this morning. that is coming up next. futures are likely to be higher. we will be there in 20 minutes. ♪

anna: welcome back. you are watching on the move. we have sales figures to get this morning. roche. beating analyst estimates as demand for its cancer medicines group. -- grew. take us through this. looking at some of the headlines coming out of roche. topline number. steady as she goes. >> that is the best way to describe it. when percent beat on risk consensus. engine isd, the key

the breast cancer product portfolio. come on a relative basis, the consensus is tamiflu sales helping you deal with flu outbreaks. year but theyt beat estimates by quite a bit. that helped them make up for some of the other drugs that did not make confesses -- consensus. or a did we have a good bad influenza season? >> miles. the diagnostics did really well. they continue to have trouble with diabetes where there is serious price pressure. that is becoming a small part of the business. the strength of the general diagnostics, the cancer patient -- it is all overcoming that. i will ask you to help me

look under the hood of roche. they only provide sales and not profits. is it their overall revenue come visit a frank story or is there real organic growth? the frank helped them just a little bit last year as opposed to last year. there is good sales growth across the variety of products. what is not easy to tell is how much of it is price driven and how much volume driven. we can ask the ceo. there is meaningful growth in each of the products on a year on year basis. talk aboutwe pharmaceutical companies, we're talking about sharks. seamey do not attack, the to fear for their livelihood.

&a game? roche in the m think roche has ever done anything to help drive it tacts in any direction. the company is saying and its tax 1% rise in situation. m&a we saw a recently was to bring in a product. strategic fix. be in aany will position to get involved in m&a again. when is the best pharmaceutical companies in terms of blockbusters, new block esters, about to come to market in the next five years.

to do anything. it is much more about delivering on their pipeline and the question of how they compete with bristol-myers and merck and the others in this new area of cancer. you for yourk insights. we are joined by the roche ceo. thank you for joining us here on bloomberg. i don't know if you heard the answer from one of our analysts talking about the organs of a strategic fit for roche if you do go on the m&a hunch. do you think that could potentially be a fit for you guys. >> good morning. changedstrategy has not whatsoever. on acquisitions, targeted acquisitions. where we build our existing franchises. assets and newct

technologies. as you will understand, we are not commenting on specific transactions. hans: you will not rule out anything with medivation or anything with pacific biosciences. >> we will not comment on specific transactions. anna: thank you for joining us. areau are looking, which are you thinking, pharma, diagnostics? >> we look for opportunities in both pharma and agnostics. we did a number of transactions last year. typically, small to medium-size at decisions are where we go for products or technologies which complement our franchise. i see no change in our tragedy as we go or when.

sam hear from bloomberg intelligence. a quick question. product launches this year and next year will be the oncology drug. there is an intense competition in that space. interesting dynamics with bristol-myers who is leading the charge. and also with merck. despite the fact that they were first to market, their sales are not growing as fast as bristol-myers. $3 billion in sales. 50% of growth in the oncology business. how important is it to you to get this product launch right? cancer therapies are a focus. we increasingly locate sources

in this area. a very promising area. it has the potential to make a big difference for patients across a number of cancer types. we believe that we are in a leading position. with one of the broadest portfolios in the industry. we have 50 clinical trial programs ongoing at the moment with nine new investigational medicines in the clinics today. our -- as far as our compound is concerned, we have two indications for bladder and lon ung cancer. we hope to launch the indications this year. as far as bladder cancer, this will be the first cancer therapy for this type.

they are very optimistic for the franchise. hans: on those new launches, does that mean you will be spending more on marketing? if you do, will that eat into some of your r&d budget? the plan is evolving. we continue to invest in r&d and marketing. on the one hand, we have a and as theogressing molecules get into later stages of development, more resources are allocated to the perspective programs. at the same time, we are ofparing for the launches two therapies. we are investing in both r&d and marketing. we are also working on our productivity. we constantly want to improve

our processes, our structure to compensate are those investments in our pipeline and new product launches. ucente sales of lo has dropped, -- based on competition, what can you do to stop your sales from being eroded? >> the business model is clear and straightforward. stand into constantly the chaos. at some point, all of our medicines will the climb and we will replace them with new medicines. our strategy is to go for medicalon to meet unmet needs and that is exactly what we are doing. nextlook forward over the -- over the near future,

are very important. we also recently launched two medicines for cancer in the united dates in a -- united states in a specific type of lung cancer and skin cancer. is about.at roche moving the standard of care. hans: are you concerned about bio?hreat from bayou -- is threat of bio similar pose? >> we don't view it as a threat. this is going to happen. not -- ourphy is

philosophy is to move the standard of care and make current medicines obsolete. that is what we are doing with new franchises in cancer and therapies or in hans: new areas. there are a lot of new exciting areas. thank you for your time. coming up, let us head out to caroline. she has her stocks to watch. have a very different market to be looking at. from cancer drugs to make up. is likely to do well on the open. this is the trajectory over 12 months. a volatile ride. we could see a bounce near 160.45. earnings came out late yesterday. it was a beat. arst quarter up 1.8%, six and

half alien euros strong in america. the makeup is selling at great guns. the consumer unit continues to outperform. shampoo and garnier --ly mesko, north american this company is doing better than expected from consumers. consumers also helping another business. it is likely to rise as well. thisted to show you company. as a competitor -- remi contra ointreau numbers are improving. 9.8%. hans is not able to answer

questions about his preferred hair products. a lot to watch it when the stock markets open up here in europe in a few minutes time. the suggestion is that futures will be going up. all you need to know. ♪

anna: good morning and welcome to "on the move." we're just moments away from the start of european trading. hans nichols has your morning brief. hans: thank you. financial markets have it wrong, is the opinion of federal member rosen brent, calling the expectations too pessimistic. first-quarter sales of the maker biggest drug rose fueled by demand for cancer drugs. and netflix shares plunged in after-hours trading after the company forecasted a weakening international subscriber growth. i will take a quick look at futures -- mostly positive on

the fair market value, dax and cac up, spain and italy may go down a little bit. it also looks like we are in positive territory in switzerland as well. let's head out to the touchscreen for the market open with caroline hyde. caroline: hans, oil goes higher, stocks go higher. the s&p 500 yesterday closed higher since december 1, asia going great. we have the best day in a month and we are likely to see a pop open as oil spikes higher, ftse up 1/10 of 1%. but really, we are seeing the first time for oil in five days, when certainmism fed presidents said the second quarter will get better for the u.s. economy. hope about earnings, all driving money into equities. dax opening higher, currently seeing not one single spot falling. a bit of chipmaking, banking,

utility rising on the open when it comes to germany. clearly we have a risk on moving the equity market, because we have a risk of move in the oil market. 1.2% higher. labor concerns, strikes happening -- will that help pullback supply? the doha deal is not on the agenda anymore. we are certainly seeing dollar weakness, 9/10 of 1%. the only other weakening currency is the japanese yen. the u.s. dollar is going higher in the japanese yen is falling because we have that risk on trade. we get out of the he's and that is the end. check out the korean won. this is the u.s. dollar weakening, the korean won driving higher. it is the best-performing major currency because there is no added monetary policy coming from south korea today. monetary policy is on hold for the bank of korea. let's have a look at some of the stocks to watch. plenty of earnings.

rosche was speaking to the chief executive -- one percentage point across the board as the drugmaker's sales go higher. francs is howwiss much they bring in. l'oreal -- a 5% pop, doing very well in the united states. consumer market in particular helping this particular company, like for like sales up 4.2%. cointreau, it too does much better than expected in china. fourth-quarter total organic sales 9.8%. anna: thank you very much. let's have a look at the market moves that are illuminating this morning. bringing up the map function, really painting a green picture for global equity markets. honing in on some of the sectors

listed this morning. and as gas higher, caroline was saying, we have a risk on environment for oil, and that extensive the rest of the equity market, the relationship between the asset classes seems to be firmly entrenched. we've got some of the companies that reported, and caroline was telling us the stocks to watch -- the likes of l'oreal, moving higher. let's talk about the banking sector, hans. hans: this is something that's closer to home for both of us. morgan stanley has joined the ranks of wall street banks that beat profit estimates by cutting cost, with first-quarter income more than halving as revenues shrank. bloomberg's managing editor for asia finance joins us from hong kong. philip, how is wall street fighting back against a weak quarter for revenue? >> you just alluded to it.

it is about taking out costs. all four thanks we have seen reports so far has been very aggressive on cost. look at morgan stanley, meeting earnings. what they did was reduce conversation costs by 19% year on year in the quarter. we know goldman, next up to report, is embarking on what could be the most aggressive cost-cutting program since 2011. the only thing you can really do in this market, as there is no visibility on when revenues will stop falling, is to take out cost. anna: and how is this -- good morning -- how is this all shaking out in the asian banking space? some banks have been getting away from things that aren't their bread and butter, others are more adventurous. >> it's a little bit of a bifurcation. you have some people who more or less had to pull the plug in hong kong like standard chartered, barclays. then you have other banks that

are doubling down on asia -- credit suisse comes to mind. they are not taking out any headcount there, instead going deeper into private banking. ubs is doing the same, expanding fairly aggressively and private banking in the mainland. it is kind of a bifurcation in the market, where some are doubling down in summer pulling out will stop anna. anna: thanks so much. be able to follow the goldman sachs earning release and subsequent conference call, live on the bloomberg with top live. it really takes you through, minute by minute, all the developments as they are happening. that starts at 12:30 u.k. time. onset with us, very patiently waiting, the ceo of hesiod asset management. thanks for sticking around with us this morning. let's talk about this banking sector. what do you see to get excited

about? a lot of the beating of estimates comes through because of cost cutting; not something that gives you conviction. >> not at all. i think q1 will be a tough environment for the banking sector across the board. not only do we have a shocking january, we are also currently well belowumes level of 15. that's why we say the only way forward is to cut cost, which is very aggressive across the board. that impacts on sentiment, and also spills over into all sorts of market. the housing market, the global equity market, the bond market, and right back to interest rate expectations. the only light at the end of the tunnel is the yields in the financial services sector. anna: the fact that these stocks are so cheap compared to book value, even that is not something that would tempt you

back in. >> at the moment it is hard to get excited, because you can see where growth is going to come from. you'd like to see m&a transactions pick up in a meaningful way, but we have seen a record number of bond issuing defaults, up to $50 billion. this is back at levels we saw in 2009. this just isn't a great environment for the financial sector. hans: you know, i was expecting you to come on and be bullish. i am hearing mostly bear talk. where are you bullish? can we be bullish anywhere in the financial sector? >> i think at the moment in q1, no, you can't be overly bullish. but i think so pickup in q2 and q3 as we start to see significant dollar weakness. that will translate into earnings. look, we are not bearish, we are actually quite positive. we still have global growth of 3.2%, and the u.s. growing up 2.4%. this is a very positive

environment, with oil prices quite well and no certificate interest rate hikes with massive quantitative easing. there's a lot to be positive about over the next 6-12 months, the right now, q1 isn't a great environment. hans: and for q2, i know we are only 19, 18 days into it -- what do you see the banks doing? we don't have any levels on trading deficits, but what are you expecting from q2? >> i'm expecting markets to improve quite significantly. we're expecting to see revenues pick up from low levels. we're expecting to see trading increase quite significantly. i think the markets are still brushing themselves down. remember, china is starting to stabilize. we are starting to see reasonable numbers come out of china's stable gdp growth. this is all encouraging. the dollar, as it starts to weaken, will be very positive

for emerging markets and commodities, which will also support of the global growth story. anna: everything you have said, i don't expect to have the appetite for dipping into the italian banking sector. what worries you most there? we have a great graphic demonstrating the issues facing the sector; nonperforming loans more than two times the eurozone readability tond the holdings more than 2000 average. it doesn't matter where you are worried about it; a lot of the asset classes that could trigger concerns are right there in that italian banking story. >> absolutely. they are indicative of what happened in a worst-case scenario. but europe is slowly improving. inflation numbers are looking reasonable. we are starting to see growth filter through. and of course, we have a euro that is massively undervalued, which is always good for exports in the german market.

focus on germany, not on italy. i have more confidence in the german banking system in the italian banking system. anna: no doubt we will talk more about that at the ecb meeting. thank you very much. he'll stick around longer. up next, 15 is the magic number for argentina. a $15 billion bond sale after 15 years locked out of the credit market. aaa.ing that is 15 below one of our producers worked very hard on that. we take you through the biggest emerging markets bond sale since 1999, next. ♪

hans: welcome back to "on the move." it's a mixed morning. let's get the first word news with yvonne man. yvonne: hans, thank you. china wants to control the most popular fast food chain the country. people with with knowledge of th with knowledge of the matter say they have expressed interest in buying a majority stake. it runs more than 7000 kfc and pizza hut eateries across the nation. the deal could value a debt between $7 billion and $8 billion. the abe administration has revised a board position and became vacant in june. givenecialist has been

and not as the only woman on board. the change comes as the boj's negative rate strategy generates controversy at home and abroad, and with inflation far from its 2% target. corporate borrowing costs are jumping from their lowest level since 2007. investors are spooked by a fresh wave of enterprise defaults. the $3 trillion market shows signs of unraveling as companies have seen yields up from nine of the past 10 days. it triggered the were selloff since 2014. global news, 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. you can find more stories on the bloomberg at top . hans: thank you. 15 is the magic number for argentina. 15 years of record default, the nation returns to the market, selling $15 billion worth of bonds with a credit rating

expected to be 15 grades below aaa. the sale will be the biggest emerging markets sovereign debt sales since 1999. ballard joins us for more. also joining us on set is yoga tgi dewan. simon, let's start with you. how significant is the sale? simon: i think this is usually significant. it's the first deal and 15 years since the 2024. argentinahe return of to the capital markets, and it is a reflection of the depth of demand that they're able to get away with. just $15 billion. to issue is the -- the issue is the payouts, and on the positive side, it hopefully draws a line in the sand for argentina, because of its default history. anna: question to both of you, then, about the appetite among

the investment community. you can stick to your own appetite for a fairly high-yield bond, the one that comes a lot of history, and simon, what kind of appetite do you sense among investors that you have heard from? simon: it has been positive, let's put it that way. we have had twice the prescription. there are a number of questions being asked, given the default history of argentina, seven times since independence, and twice since 2001. at least one investor was mentioning to me on the phone that if i buy a 30 year piece of paper, what is the chances it will default? a lot of skepticism in terms of history and the memory of the market, but in the short-term it looks like -- anna: you have the appetite for something like this. do you think a lot of the money going in will be short-term, or will video for the long home? -- the long-haul? >> i think this is a fast money market trade. it is a watch and see trade.

it does draw a line in the sand for argentina going forward. it's good to see the oversubscription that a lot of investors will try to distance out. if you want yields and you believe things are going to improve, that's the equity market. it makes more sense. hans: i'm going to ask you the same question. and whileest in cases in maalbeek? what is the wine trade? simon: i think if you take this as a positive for argentina, you have to think of whether it will lend strength to the currency, in which case perhaps your maalbeek becomes more expensive going forward. does draw a line in the sand for economics, and ahead of schedule in terms of what they are expecting it to do to the

economy. the short-term performance of the bonds, if there is any fast money that comes quickly out, would be key to how the bond holds up. anna: i pulled the function on the bloomberg, which shows you the country ratings. small,bers are fairly but the ones for argentina suggest that this is in default and a number of different expressions. but that is not where the bond is rated, the one that's available today. when a way to come back to the simon.rket, the size of this i so significants, across the emerging markets they. simon: across argentina, and has he said, we have the reaching of speculative default and the implied rating for the new bond, which puts it in the p are group of pakistan and egypt.

it is a momentous day for argentina, but it remains to be seen how the bond will perform in the coming days. anna: crucially. thank you very much. simon ballard joining us. yogi dewan stays with us a little bit longer. hans: you know, we are going to take a quick look at brent. it is rising a little bit; looks like brent is going up. this could be related to the the marketuwait, getting more accepting of the fact that the strike isn't going anywhere. we will be monitoring that throughout the day. in the past we have seen the spread narrow, and it looks like it is widening out. we are few minutes into the trading day. i hope my time is right, because up next, it is time for battle of the charts. anna, i'm going to get a chart and you will get a chart and are guest gets to adjudicate. ♪

hans: welcome back to "on the move." it is time for the battle of the charts. what i going to show you is the number of chinese tourists going to japan. be overly for my chart is the idea that we have a lot better economic data coming out of china then we know. it's a recently positive, that risk on sentiment. we have had the monthly visitors to japan.

this white line shows you the spike. this shows you a wealthy, middle-class chinese consumer wanting to see the world. here we have the taiwan as the benchmark, and korea bouncing around. you can see right here, china is overtaking korea. it's over taking korean tours as they visit japan. anna, i know this is your time to make fun of german-american remember, i can always counter with some of your vacation, shall we say, exploits. anna: [laughter] don't teasehing, the audience as though you have any knowledge. i see your chart, and i review this chart. the commodity story, the oil story, has been the story of the year, two years. so i got this chart -- here is why the mining rally could be at risk of faltering, this according to citigroup. at the top, we have mining equities, climbing too fast,

stretching violations. -- stretching valuations. this is the estimated attached to it. the prices have climbed, but they haven't taken profits within, therefore valuations are looking stretched when you at valuatione to the general stocks euro 600. almost double. more than double. we have more than double the p/e on the mining sector versus the overall european equity markets. yogi, we leave it to you to decide -- wish turkey you prefer? tourists in asia or this mining chart? plays on what's going on in china. an interesting chart hans put up. china sneezes, japan gets a cold. i think your chart has the edge; it's a bit more interesting

because it is a reaction to stable chinese growth numbers. consequently, the miners run ahead of themselves. i'm going to go for your chart. hans: i -- anna: i'm honored. --s, my chart your anna -- debutante and name are two things i've never been run together. your chart reminded me of your cooking -- too many flavors. but i guess i need to take a look at what's going on in asia. we see a risk on sentiment. we have so much funky data out of china; we aren't sure what we believe. when we see tourists voting with their feet, they head out and visit some of these places. but now that i have insulted your cooking, i will give you the last word. anna: let's get yogi's westward.

talking about the mining sector in the stretch valuation, where ar eyou playing -- where are you playing? >> not the space. too much has happened too quickly. we are encouraged by stable chinese growth; we think this will spill over into the global equity market. it's not an event for q1 earnings, its q2, q3, q4. anna: your best pick this morning, then. give us your topic. -- your top pick. >> i woul >> i would say the dollar. it is massively overvalued and we see it going in one direction. anna: music to the ears of the fed, maybe. thank you very much for joining us. yogi dewan. the ceo joining us over the last hour. up next netflix shares sink. we talk more about the technology sector, a really fascinating story behind netflix.

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x1 makes it easy to find what you love. call or go online and switch to x1. only with xfinity. anna: welcome back. this is "on the move." gives: 30 here in london. ; 30 minutes into the trading day let's see how things -- this is picture. of 1%, but 1/2 that is a bit of a laggard. l'oreal is doing well, sales better than estimate. l'oreal is reporting numbers, impressing the market, it seems. the mining sector in oil sector are both moving higher on the back of that firm's we have seen in the oil price.

-- $43.63 isatest the latest price for a barrel of oil. this is one day after the doha talks fell apart, and we have s een a floor put under the price of oil. with many strains to it. lets get up-to-date on the stocks we need to watch this morning. caroline hyde has been watching those that are on the move. caroline: you mentioned thae two french companies moving higher and one of the other performers is l'oreal. we are talking makeup, garnier, and 4.5% growth in their profit moves. we are seeing a better than expected north america unit.

we are seeing consumers really galvanizing things over in north america. that is helping offset some of the weakness we saw in brazil because of raising taxes, and also some of the weaknesses we saw in hong kong due to the weaker mainlanders traveling to hong kong. l'oreal is really managing to outperform in terms of its first quarter; the numbers drag higher in the stock performs. of course the advertising giant is up 3.9%, standing good on their previous quarter. publicis is up 8.9%. overall, the chief executive is warning that the next quarter's could be hit by some more account losses. they say that organic growth is going to be driven by new accounts at the end of 2015; they need to keep this good pipeline going. there are a few cautious notes about that, but for now they are

really liking their previous performance. the downside, zalandose. easter didn't come at the right time; that seems to be what the outcome is in their numbers. they are saying overall the first quarter profitability might be below a four-yea r target. apparently some people don't splash the cash when they are eating a chocolate easter eggs. the worst performer on the stoxx 600. anna: thanks very much. sorry, hans. hans: no, you can talk about markets. i was going to talk about netflix shares tumbling in extended trading, after weakening subscriber growth. it expects to add 2 million international customers in the second quarter, far fewer than the 3.5 million estimated. the ceo says they haven't yet reached all the benefits from

its global expansion. wemost of those countries, haven't yet seen the full potential of, because we are only in english and only with international credit cards. over the next couple years, as we further localized, we will be able to see more opportunities. hans: for more, all over liver o harrington. when you see the six nation, do you think it matters or is he just playing for time? >> in terms of the international expenditure, they are doing all the right things. if you look at the way the shares reacted, they were initially down 12%. now they are down 8%. the problem the stock has is it is such an immense growth name, as with the others, and they are priced to perfection. any other weakness in terms of that future momentum and growth expected by the market is what punishes the stocks.

personally, if you look at what they are delivering in the quarter, it's a very strong subscriber number, particularly internationally. they have almost finished their global rollouts; it is a case to r of boosting content over timee. they have produced their own exclusive content and they have more stuff coming in this year, deals with disney and very high-quality content. they are doing all the right things but in terms of the multiples you trade on, you are going to get taken out. perfection, and it matters how much people expected in what time frame. -- businessesngs are suggesting we can deliver a new international markets, and it will take a while longer.

maybe it just takes them longer than analysts expected. excited, and last year reed hastings was talking about international expansion, the global role. analysts -- anna: that they underestimate the headwind? >> i don't think necessarily. these things take time, but no company is anywhere close to netflix in terms of their global reach. a product that is very much global in its appeal. hans: oliver, another global company is yahoo!. tell us what you think should happen, and then tell us what you think is going to happen, to the troubled u.s. tech giant. >> this is an interesting one. the deadline for the close was yesterday. there are a multitude of different names; you have everyone from google to the verizon,l, google,

which i think is the most logical choice. fort of people acquired it $4.4 billion, and at the end of the day, you are still buying what is a reasonably attractive asset. it doesn't have the same momentum of facebook or google, but ultimately it is the third most viewed website in the u.s. you have 280 million people that are signing in on a daily basis for e-mail, and that is a pretty attractive user base. why this business is garnering a lot of interest. on top of that, you have the stake of alibaba, you have yahoo! japan, which doesn't get a lot of airtime, that is a very attractive asset. it outcompete google in its home market; it is a profitable business. there is a lot to yahoo! in the same way there's a lot to a a well. in new york, i was very impressed with what they are doing, assets appealing to millennials, and there will be

assets within yahoo! that people will be able to come in and do something with. plays from google" the daily mail," those i get. they're looking for subscribers, looking for eyeballs. walk me through the verizon transition. how with verizon make that leap into content? where thisis is whole space of media content distribution really starts to blur. it's a case of what you need to keep your existing users happy and bring new people into the frame -- it's all about the people in verizon, and i think the more content, the more the expanded offering you can give, the more likely you are to keep them, and that reduces churn. i think that is a big part of the aol deal. that's clearly what they are looking to do. anna: what happens to the yahoo!

brand through all of this? is with long enough memories will remember that it was the main way into the internet for millions of people back in the heady days of the 1990's. is this something that still has enormous value, or given the trouble in turning around its business, is that more of a lightweight? -- a lead weight? >> it's difficult to appreciate from u.k. perspective, because it's different. aol is a good example, yahoo! is the one we speak about now. so while over here there is a perception that it's a tarnished brand, not as relevant, but if you look at the stats that the u.s. produces, there are still an awful lot of people for whom the site resonates. thank you very much for joining us. oliver harrington, about the technology sector. up next, european disunity.

the european council on foreign relations on how to tackle europe's several crises, next. ♪

anna: i'm anna edwards; this is "on the move." looking across the thames, futures up by half a percent on the ftse. basicergy market and the

materials businesses are trading higher. balance ina bit of a the commodity crises, with pressure on those stocks. let's get to nejra cehic with a chart for us. nejra: thanks, ann. i thought we would talk about the korean won today, the best performer among major currencies against the dollar after the bank of korea kept rates unchanged. it rose to a five-month high. i want to look at the won not just against the dollar but also against the yen. it's up against the dollar by 2% but down 7% against the yen. the won dropped to a 29 month low against the yen this year; that has boosted the competitiveness of korean cars and electronics compared with those made by japanese rivals. some comfort to korean companies as they face a 15-month slump in exports. it also eases pressure on authorities to stem the won's strength versus the dollar.

this is all the different picture to just under a year ago, anna, because when trade and business groups were calling on policymakers to steady the won as a climbed to a seven-year high while weakening against the dollar, we are seeing the opposite picture now. i spoke to commerce bank on bloomberg radio earlier and asked him specifically about this. he said the korean won's rally against the dollar does have risks, because a lot of those have been about the market repricing the dollar, and korea is a bit of a proxy for china's renminbi. we are likely to see renminbi and korean won weakness toward the end of the year as the markets price in fed tightening, but he said there is no real driver for further yen weakness, so perhaps korean exporters needn't worry quite yet. hans: thank you, nejra. europe,ack to your

greece came into question when the imf's christine lagarde warned against high reaching hypotheticals, and now you're moscovici has said that the imf mustering a part. joining us now is a senior fellow, thank you for joining us. when you look at this position, moscovici saying the imf has to be part of the solution, will it be part of the greek bailout? >> it looks like it, but there are two camps supporting the role of the imf. the french support the imf because it is strong on debt sustainability. on the ability of greece to carry its debt load, the imf is for it. the germans are for the imf because they want the imf conditionality. they want this extra, on political player to be there, to help them keep up the pressure on greece. hans: the days are getting

longer in germany. why are we talking about greece yet again? why are we back in this conversation? >> because greece is not doing what it was supposed to do. nationality,with but the real structural reforms, the underlying agenda is not addressed, and it can't really be addressed because this is not part of the fiscal conditionality. it would require much more political effort. anna: how united is europe, then, on this challenge? this is anna in london. you highlight many areas of european policy for europe's leading nations aren't quite on the same page whether it is on refugees or the terrorist threat. different countries pointing looking for a call to action on those things and not necessarily finding europeans united. is europe united on how to deal

with greece? your previous comment suggests no. >> no, it isn't. that part of europe's more fundamental problem. the level of cohesion is very -- politically, the risks are stronger than they have been in times, and the fact that france and germany are on different sides is not uncommon, but what is uncommon is that they seem to be less interested in over covering these bilateral differences in order to leave europe. greece could be a case for franco german leadership, but that would mean they would not only have to develop a, sue bution on the debt is on how to help greece on reforming its state. does this through existential questions once again for the european project over the summer? >> yes. it will come back. basically, it all comes together. the refugee crisis has a focus on greece. it's this old issue o the southf

of europe being very dependent on the rest, and somehow politically it's too difficult to say, how can we make the south more northern? this is one of those -- hans: a few hundred meters from here -- if we were to walk into the chancellor's office and read her confidential files, to try and figure out how they are gaining out bringexit, for what is the view inside the government on how you respond? >> brexit is terrible for germany. if britain leaves, it's another one of those steps that suggests reverse gear and integration. in, it is verys likely that it will be a rather status quo minded actor, not an actor that rolls up the sleeves and gets europe forward. it will rather be saying, we

just managed to stay in, now hold back. this is both rather uncomfortable for germany. hans: some of the damage is already done, regardless of the vote. >> the damage is done because this debate has been going on for years, and it has proliferated into other areas of europe, notably in the central europe. and that sense, the damage is done, and the referendum can only try to limit that. hans: much of a look for in terms of the refugee crisis before the brexit vote? >> exchanging courses. it is moving toward italy now, and it will test the preparedness of the eu. all eyes have been on greece and turkey, and now we will see whether the europeans have prepared for the other mediterranean route. hans: it thank you very much for your time. we really do appreciate him, coming into our studio. coming up next, we have a big

day for everyone involved. we will have earnings on goldman sachs, governor carney, and some key economic data. everything the market should care about today, coming up next. ♪

anna: welcome back, this is "on the move." london markets trading up by a tenths of 1%, in good company. the rest of europe doing a little bit better.

here's a look at what lies ahead for your trading day. germany'ser an hour, doubly survey is due to be released. at 12:30 p.m. u.k. time, we will get earnings from goldman sachs. how much will cost cutting be part of the story? you can follow that release and the subsequent conference call on top live. everything being revealed minute by minute, a fascinating place to watch this develop. the bank of time, england governor mark carney will be quizzed in parliament about the risks to the u.k. economy, including brexit. let's bring into the conversation richard jones and jon ferro. good morning. richard, let's come to you first. ago, just half an hour japanese yields touching new lows, record lows for some of these japanese government bond

products -- negative interest rates, as we look ahead to the ecb. yeah.d: what will be interesting is we don't get staff forecasts this time around -- we had the imf, the world bank, all taking what i would say is a very cautious view on world growth. it will be interesting to see if this feeds into the ecb's thinking. we know they are already taking a more cautious view than the fed, the let's see if there is more caution from the ecb and whether they are letting us up for further action later in the year, as investors are pricing. anna: i think we did a survey of economists, and they don't expect the ecb to do anything else until september. that seems a long time away, and all kinds of crises -- jonathan: we are seeing all kinds of consequences. argentina coming back, what could be $50 billion of debt, and it reminds me of greece coming to the market.

it yielded about 5%. i was looking at the bloomberg earlier; the yield and now is about 10%. clearly, investors have demand for this auction today. you look at some of the yields, it could go a 6.8%, for a country just returned to the bond market after 15 years. i just wonder what that will yield in two years. anna: hans? hans: we spent a lot of time talking about brexit in your. jon, i want to get your sense on whether the brexit conversation is part of the conversation in the variety of fancy golf courses where you work on your handicap every weekend, and by weekend i mean every afternoon. jonathan: don't confuse my work ethic with your own please. when it comes to the brexit conversation, i have been struck by how many asset managers that is a lot of money and talk about brexit as a serious risk. it's not just europe and the u.k., it's a global upset.

whether they should be is another argument altogether. looking at thet spanish unemployment numbers; we are getting an update from spain, saying that spanish unemployment fell to 19.9% in 2016. that underlines the challenges that still lie ahead. richard: you have german unemployment at all-time lows, spanish unemployment your 20%, having been revised down from a higher figure -- it shows the challenges facing the ecb and other policymakers, because you can't make policy just for the core. you have to make a policy for the continent, and it is tricky. anna: richard, thank you for joining us. jon will be back later. stay with bloomberg television; "the pulse" is up next. , european equity markets doing nicely. 100 beingthe ftse

lifted by mining and oil stocks, and some of the individual stocks are outperforming the market. that'll do it for me; see you tomorrow. ♪

francine: turning positive. stocks go green as oil of moves higher. it will hike faster than the market takes. china's borrowing costs jumps as the bond boom starts to unravel. making on the dead trade. first-quarter numbers support the strategy. ♪ -- banking on the debt trade. first-quarter numbers support the strategy. welcome to the pulse