up next, will the euro meet the dollar? the euro dips below $1.05. a stronger euro this morning.are up 0.7%. ♪ jonathan: good morning. we are 30 minutes into the training session for the european equity markets. the ftse 100 up by 42 points. 0.6% higher. the dax down 0.1%. the story in the fx market compelling. the euro, stronger this morning. the bond market, as you were. record low bond yields. i'm looking at an irish 10-year with a yield that momentarily dropped below 70 basis points. the 10-year in spain headed towards 1% flat. remarkable moves and the bond market. that continues. for now, the top stocks stories with caroline hyde. caroline: even as the ftse is on a tear two u.k. stocks are feeling the pain this morning. down 15%. it is our rights issue that we knew about. perhaps going to the top end of where many expected it to. they are selling 550 million pounds worth of shares. stocks dropped the most since they first announced that rights issue. their financial results reflect the u.k. government contractor 1.3 billion pounds of onerous contracts and other charges. they

obviously part of the story behind the cheaper euro the ever cheaper euro is that that's been some of the good medicine that's been helping the euro zone that was so problematic for the markets back in the fall when euro zone economic inflation me tricks inflation metrics was starting to plummet. of course the other side of that coin is this dollar rally. too much too soon is not a good thing for appetite. certainly not here. >> of course the other asset class that investors were focused on was the bond market. what's the impact of negative yielding bonds? some traders yesterday were saying that it's resulted in some investors looking at the u.s. bond market given the yield of better than 2% on the u.s. ten year. do you think that's the case? >> absolutely. we've had qe in the u.s. and that's obviously flattened out but we have imported or derivative quantitative easing here in the united states thanks to what's happening in the euro and european bond market. so the bond market is one global marketplace as yields get extremely low in the euro zone that flows into yield suppression her

between the euro and the dollar. we asked about the impact of the weak euro. especially when you have premium brands like portia and audi and clearly there's an advantage because of the euro-dollar trade. here's what he had to say. >> we are planning independent from worldwide exchange rates and the rouble contracts and we have the currency dropping and our product and planning decisions are independent of currency exchange rates. >> for some of your brands a couple of good examples, it's more poftable right now. >> of course. it's of course an advantage for the brands that export mainly to the u.s. but there's other countries as well. think of russia the rouble it becomes more difficult to sell audi and portias than volkswagens. >> we sat down with him within the last half hour. he is talking right now going over the last year and some of the projections for the future. again, the big headline here the annual profit last year theoretical profit of 17.9 billion euros. that is a record for volkswagen. back to you. >>

and the swiss ski resort that is secretly using the euro.illions of russians may well be feeling the effect of western sanctions. unemployment rising, public spending cuts spreading, and the russian ruble in freefall, but their support for president vladimir putin remains steadfast. however much western leaders hoped that sanctions would change that approach to the ukraine conflict, it just has not happened. putin remains hugely popular among russians. his tactics have not changed. to get a better feel for that mentality, we travel to a russian enclave in the baltics to catch up with the man they call the sofa king. >> he prefers to be called max after the initials of his first three names. he is an ethnic booze back among russians and a multimillionaire, counted in euros. at russian president vladimir putin's request, his company restored the decorative elements of the cathedral possible type organ. max showed his gratitude by donating some 25,000 euros toward the restoration of the cathedral's old library. philosopher immanuel kant worked

let's take a look at how euro -dollar is trading. the euro on offer. a 1.09 handle. trading softer. 1.0997. down by 1/3 ofn on the session. let's get some analysis. ebs'chief economist joins us. good morning. what was the read from draghi? guest: we were such -- we were relief to such a confident display. we felt the new ecb economic forecast painted a confident picture of the economic recovery in the eurozone going forward. those holds for both the gdp and inflation numbers. guy: the inflation numbers are getting back to target. if they can do that, does that mean that a 2016 close of q.e. is the most likely outcome? mr. chursese: the 2107 inflation forecast is 1.8% slightly below the target of close to below 2%. at first sight it might seem the ecb would like to keep the door open to extend q.e. beyond 2016. however, in the forecast the ecb argued that expects the output to be close over the course of the forecast horizon. by 2017 they expect the output gap to be closed, and that was a just we cannot conclude that q.e. will run the on september 2016. guy: i saw thi

the euro, i guess everyone is to bearish on the euro. i do not see it rebounding strongly with all of the qe. i think you see the effects will be gradual this year and next year. it will have an effect on gdp and even greater effect on companies earnings. this is the first time in five years that continental european earnings are going to rise in perhaps double digits. jonathan: whiffs in a big move in -- and we have seen a big move and some of these markets. is it buy the dibs?> joseph oughourlian: i think the playbook isn't the united states. what is happening in europe is probably going to be shorter. -- i think the playbook is the united states. reaction stronger, more powerful than announced by the fed. undervaluation of european and people say the playbook. they have seen it play out in the u.s. jonathan: i want to talk by italy. the ftse has been on an incredible run. you have been in this country since 1998. you have seen growth flatlined. why is that going to change in italy anytime soon? joseph oughourlian: the performance of t

have a look at the euro. the euro is coming up a little bit lower.e will deliver a proposal as we hear from constant. what will they deliver? we have got 82-week rally. the euro -- 1%. 14 of its major peers. the market has positioned itself absolutely to the balance on the dime side. the market is betting against the euro. it is a record short position. that is according to the cftc. keep an eye on the yen. have got that little bit. i mean, it has moved. it is a must like a radio voice on your iphone or cell phone. 119.19 is where we are. the debate will be we are next. the cap telling you -- i kept telling about this opportunity that was trying to get through this 120 level and failing and has done for number of occasions. does that mean that more connotative easing is well priced in? caroline, back to you. >> is get a check on the top stars -- let's get a check on the top stories. goldman sachs international paid its employees on average about over $537,000. it has cut them out revenue has paid a plea since the financial crisis. -- employees since

>> the euro has nothing to do with the greek situation. sometimes the euro goes up. [indiscernible] even when the greek -- [indiscernible] a few years ago, it was different. [indiscernible] francine: let's continue to talk currencies. jeffrey joins us on the program. this former french president was saying that there is such a thing as a euro that is too low. you don't agree with that. >> i do. if you look at the model, the euro is well above. this is a competitiveness windfall for markets on top of the current account windfall that they have already have. this can start to exacerbate some of the imbalances. francine: what is fair value? >> anything that can bring the german and dutch down to below 5%. francine: we are on parity watch. you are not. >> i don't think it is going to happen. my neck is on the line. [laughter] francine: geoffery stays with us. he is one of the few strategists who do not expect parity. here is what else is on our radar. the imf has approved $17.5 billion loan program for ukraine. they will receive an immediate $5 billion disbursement to st

the stronger dollar the weaker euro. some of the traders say the euro has fallen too low. especially when looking at the latest growth numbers. you look at the employment number and inflation number as well. we're seeing an up tick. has the euro fallen too low? why is it not responding to some of the economic data points? >> yes, that's quite an interesting question. i think we are likely to see the euro changing it's behavior relative to economic performance and relative to asset markets. you can see a break down in the correlation between the euro and equity markets. out performing and rebounding strongly. but the euro has come under pressure and that is very much a function of the monetary policy within europe because of the qe getting underway. you can see that break down in that relationship continuing and even extending further. so while we have this environment in place it does mean that the euro is unlikely to add to positive data coming from europe. so while we may see more signs of growth slowly coming through within europe that's unlikely to be enough to pull th

to 1.1 7 trillion euros.25 of the 30 companies on the dax have seen their share prices rise by more than 10% in 2015. two are down this year. the industry that is driving the gains is all those. vw up daimler 31% higher bmw surged by 30%. between them, 69 billion euros in value to the dax this year. only nine companies in the dax are worth more than 69 billion euros. how is it looking on the valuation basis? given the gains this year, it is trading on almost 20 times earnings. that is the highest since 2009. it is on 15.2 times projected earnings, also the highest since 2009. the 10-year average for projected earnings is 12.35. it is well above the average. one final point, the dax has added the most in valuation terms. in percentage terms, it is number three in europe this year. number one denmark's copenhagen 20 index. it has risen more than the dax. number two portugal's psi 20. both have gains of 22% in 2015. germany's dax, the stock market, taking europe back to y2k. caroline: amazing points with euro be

euro against the dollar.is on track for its worst quarterly drop ever. down by 11.6%. that eclipse the drop it experienced against the dollar during the critic crunch. now it is down to 1.069. this is day three of qe by the ecb. on behalf of the ecb. talk of a u.s. rate hike lifting the dollar, dragging down the euro. it is worth remembering where the euro started 2015. one dollar 29. look at how much it has lost. $1.20-one dollar$1.06. against 31 major currencies only two writing against the euro. the danish krone and brazilian real. analysts thought the euro would finish the year by $1.18. by february, it was down to $1.10. now they are saying it will and $1.07. -- end at $1.07. you since the forecast will continue to be cut, leading to the question, how long before euro-dollar surety? -- parity? we have an underlying profit net income. 1.6 one billion euros. the underlying loss net loss 3.1 6 billion euros. according to bloomberg, a loss of 4.24. we had a net income of 2.09. eon is the entire german energy

it values pirelli at 7 billion euros. is a company that wants to take the 26% stake off the hands of camfin. it is the us italian owner, the biggest shareholder at the moment who is also of course the man behind it is the chief executive and chairman current marco. he is the man behind ca and is selling the 20%mfin stake to chemchina. they would then go for the rest and make a tender offer for the rest of the company. camchemchina, state held chinese company, will take at least 15.1% of pirelli.the rest might all go to camfin. there will be 2 holders then they take the company private. it could go public in four years. it will go private initially. let's look at what is in it for pirelli. why would they want chemchina why would they want a chinese owner? it is all about scale. skim china has a list ties. this could be achieved with pirelli. subtly you are doubling though volume of truck tires. what does it do? help against their competition. homegrown condition, inc. of michelin -- think of michelin and continental and th

euro-dollar at 1.07. a lot of people slashing their forecasts for the euro parity.: we are leaving something on the table, no doubt about that. you see these massive moves that shock people. they get the whole market into frenzy. the reality is, the u.s. economy is slowing. europe is picking up. everyone is ignoring the data. i think the fed rate hike -- we are talking about levels. the timing is basically done. the big motivation behind the dollar bull market has dried up. jonathan: we set the bar pretty low. when you look at the surprising data there was a clear divergence. are we expecting that to continue? david: i don't want to try and forecast currency and economics. that's impossible. what i am saying is, the u.s. data has disappointed. the market has ignored it. the european data has surprised to the upside. that is the yellow line. if you looked at euro-dollar, you wouldn't see that. the market is ignoring the cyclical data. that's the problem i have with this. the slowdown we are seeing in terms of the data is being totally ignored by the dollar. the narra

euro-dollar on the day.term, we still expect data in the u.s. to stabilize after the weakness. we do see the offset hiking rates which combined with the persistence of politics -- policy easing should push the euro-dollar lower. jonathan: i want to talk about the euro-dollar. toward parity a couple of weeks ago and then we come back and now 110. do you still expect parity by the end of the year? a lot of people were slashing where do you stand now? valentin: we are seeing positioning all dollar long from your role buying on the back of investors finally realizing they qe may be working. it could improve more. inflation may stage a return. that is the broader picture that doesn't change. it is a funding currency. the dollar is still the best for you best currency money can buy energy 10 a give and that is the case and we expect over time for a rate hike by the fed, expected to comment in the third quarter this year. . the euro-dollar should draft a lower. jonathan: the speed seems to be the debate right now.

the euro/dollar relationship. weak euro throughout the day. that caused pressure on our markets and increased pressure on the up side of european markets. take a look at the s&p 500. we're off our lows 2041 was our lows. you see how the market moved down in tandem with the euro weakening the dollar. the opposite effect has happened in europe. all a pretty good week on the up side. you see the story here. weak euro buy europe, sell the united states. very simple story here. tech stocks are getting hit rather hard here. ibm could go all to the down side. look at it quickly how we were on the week on these stocks. big declines in tech because they have significant can't operations overseas. intel, cisco, coke even all on the down side. the mover down in oil is putting additional pressure on our markets here. we're seeing oil stocks come down rather notably as well late in the day with euro lows in oil. all of the big oil names like the xop, the etf 4, go with products also on the down side. over to you. >> bob, thank you very much. >>> you know t

the euro gained 18%. economy -- and as for the pressure on the yuan right now. >> still a bit concerned? >> yeah, even more so now. we have got inflation rates numbers coming in. the lowest we have seen in five years. we also got property numbers that came out last week. not in good shape for the markets. a record decline in new home prices. this is all ahead of that gallery that is said to happen on thursday. the big topic is that gdp targets -- will they be lowering that? some expect a growth target around 7%. it is down from 7.5% from last year. they're hoping this could be a good left for the economy. it might be the boost they need right now. >> thanks a lot, eveyvonne man. >> caroline hyde is on the ground. three edges. all functional. >> they are indeed. we had yet to understand what the current scream does -- screen does. you can see perhaps who is calling you. perhaps your boss wife, husband. that seems to be a functional part of the three sides. these are not one but two new phones for the galax

being made as the euro plunges.hillary clinton's challenge may be plunging in the polls. she was in full damage control. mr. cook has deleted all of his e-mails about the world series champion washington nationals. he did that a while back. it is new technology, obviously she was wrong, what is the distinction of this debate between those for and those against? guest: all of my e-mails predicting washington national victories remain intact on my server at home. [laughter] the distinction here is she is about to be a candidate for president and she may trust that the american people can make their own choices and she did things with her private e-mails that anyone at home would have thought reasonable in terms of her yoga schedule and wedding planning for chelsea clinton, but she is not like every other american or did she is -- american. she is arguably the odds on favorite not only to be the democratic nominee but perhaps the next president of the united states. this is going to linger and will not necessarily dera

they came in at 1.2 8 billion euros. -- 1.28 billion euros.hey are not going to change their dividend. germany is too big with utilities. they are figuring out how they are going to be prosperous. there is more of a switch toward renewables. here is what the ceo had to say. he said the crisis in conventional power generation continues. we will focus on growth opportunities in the future without losing sight for the need of strict financial discipline. they did go ahead and complete the 5.1 billion euros sale of assets to the russian billionaire. while you have two utility companies in germany, they are taking different paths. rwe is staying with the same model. theot other has split. the question is will rwe stay the same? how long can they continue under their current structure? guy: these are questions we will be putting to the cfo later in the program. we will also look at some of the key debt metrics. we will watch that very carefully. rwe cfo is up a little later on the program. francine: coming up, greece's battle for 7 billion euros. we

euro area membership but on the outcome of talks between greece and a euro. games taking place between all sides. david: another negotiating chip they do not like referendums a you know that from the past. and the threat of the meeting today. mark: david stay there. david powell. thanks, david. let's talk about -- breaking news. a company led by martin sales crossing the bloomberg terminal. revenue beat estimates. making up for slower emerging markets a revenue rising 6.6% to 11 billion pounds compared to 11.3 billion pounds average by bloomberg. taxes gaining 1.1%. that is interesting. in october wpp they recorded that sales grew slower. and the strong pound was hurting. and said at the time that it was on track for sales growth of 3% for the year. it has said that 2015 revenue will rise over 3%. anna: sometimes over the weekend around greece and some of which we told you about earlier and achieve has called the proposed -- and the economic chief is called the proposal in adequate. good morning. how are fellow greeks on a resolution to today's meeting? it se

last week that was brought up another 400 million euros but they wanted 800 million euros.hey are south of 70 billion of their total credit line. they will review it this week to see if they need to raise it to keep the banks healthy. we last friday had a lot of back-and-forth about the intention in the newspaper and he was saying he expects a greek exit. that was walked back up by shall or must -- sure both -- schau bele's position. they are driving the conflict and they may put their leaders in a position difficult to back down from. caroline? caroline: thank you hans nichols. mark: singapore is beginning a week of national mourning over the death of their founder, lee kuan yew. he guided them until global success story. let's get one more from haslinda. did his influence go beyond singapore? haslinda bank for sure. he change singapore's fortunes and turned to one the richest cities in asia and he is known to be a visionary well respected by his peers elsewhere in the world. not a surprise hit influence goes well beyond singapore. china, for one, and economic model for ch

six is thousand euros a you have to pay taxes on it. -- 600000 euros and you have to pay taxes on a.thank you for being your provocative elf. hans nichols. 26 minutes past the hour. stocks a little bit firmer across most of europe. the aussie dollar climate as the rba does nothing. a busy morning off earnings. we will speak to the merck cfo. ♪ >> good morning and welcome back. let's bring you a picture of the equities market 30 minutes into the session. the dax is up 0.25%. german retail sales month on month at 2.9% expected to come in at less than half of 1%. the dax is higher, the ftse 100 is higher. let's get into some of the indices and bring some top stories with anna edwards. >> let's talk about barclays. the details this morning coverage and it is down. another mention and the ceo is getting his first bonus since he took the job in charge of what is the uk's number two bank. he took over 2.5 years ago. just trying to take it more toward the retail side of things. that continues. he told my colleague earlier, does the editing jenkins off course every part of his business must d

then the euro came back.hat conviction has been injected with uncertainty after that move in the fx market. crude getting a real bounce this morning. wti and brent as the saudis start strikes. for the greeks, the clock is ticking. the bills stack up the ecb has extended a billion euro in an olive branch. we need to break down both the stories. let's get out to our new steam. we are joined by paul gordon in frankfurt. paul, i want to start with you. i guess the big question is what is the significance of the ecb's concession? what is the significance of a extra one billion euros. paul: it is a good question whether you call it concession or not. the ecb is trying to strike a balance. draghi has said more than once that the banks in greece are solvent. this assistance is there to tackle -- the outflows caused by uncertainty over political talks. it has risen by 10 million euros since greek banks loss of access to standard funding in. february it's there at th momente to make sure the banks can continue with nor

the costs are most dollar base rather than euro based. they do not benefit from the week euro.nd defense -- not adidas. they have. manus: they are up 40% in europe. there is not much in that. i'm typing out, no, don't like adidas. take nike. weak euro. lse, bailing, good bad? edmund: you've had so many exchange mergers. so, they have been hunting around for a new strategic direction. for the index business because they resold -- that to me is a sign of good strategic direction. those indices are growing. exchanges are growing based upon these indices. that is where the business is going. but for people at lse pushing indices, that is where the money goes. caroline: it is always great having you on. in full throttle this morning. manus: "on the move" is coming up next. jon ferro is back. they have got the chairman of lloyd's of london. that up next onon "on the move ." ♪ jonathan: good morning and welcome to "on the move." we are moments away from the start of european trading. a choppy 24 hours to the equity markets. the nasdaq taking a beating down the most since april. that h

if you look at two day of bunds and euros, horsepower how they're pushing euros out the door, of coursemaking bund rates. >> et heated. i heard the discussion about the high for the year and the euro versus the dollar like many markets in 2014 2015 the first trade day of the year. we had a high close of 121.04. we could see what's happened ever since. look what's go on with regard to foreign exchange and stick with that, i want you to see something else. two-year german bund minus 24 basis points they had an auction today. very very strange dynamics. back to foreign exchange. if you look at a chart that's almost exactly 12 years to the day, today's what march 11th, back to march 1 2 1st, last time euro versus the dollar at these levels. something important, you know there's a day, december 5, i believe, we had a high set for the contract. it was around 121.46. intraday high is 121.60. my guess a new comp going back to 2007. carl, david, back to you. >> yes, it is me. coming up "squawk on the street" live from the goldman sachs tmt conference interviews with ceo gary cohn. plus, he found

euro-yen, stronger yen. euro-swissie. swiss franc reverting against the euro. kit juckes' note this morning from socgen. this is what the professionals look at. zero-yen. -- euro-yen. i rarely show the more conventional technical stuff. we balance off the moving averages, down we go. this is the euro reversal of the last 5, 6 or seven days. brendan: air not getting any help from the yen. the inflation japan is h oping for is not happening. in december, kuroda said let's all adjust together. japanese corporations did not give wages. brendan: the backstory overnight japan in search of inflation. kit juckes is saying this trend may continue, strong yen and weaker euro. i rarely use the word subtle when looking at equities, bonds currencies and commodities. we need to speak about the tragedy and france. he headline came across the bloomberg terminal at 7:52. the mystery of germanwings 9525. french authorities said it appears the airplane was forced into a crash by a pilot. we will all adjust european airlines they will change policy. caroline hyde lives out of heat

focus around the euro.d its currency to weaken very modestly. they may be thinking we got to do have to do something not to devalue the rememby, but the politics could get more mess where. especially if you have what i call devaluation creation. if china goes, japan, singapore. we have a bigger isk on the u.s. economy and a greater risk it becomes political and ugly. that to me could be the straw that breaks the camel's back. >> in the goldilocks environment, a ben franklin close. positives and negatives. there's a couple negatives but i can give 12 positives. the economy is getting better. the consumer the oil, all of these things. the one thing, you highlight -- this strong dollar it's moving too quick. it unsettles people. >> speed is huge. steve, you touched on that too. if these currency moves come gradually, companies can adjust their hedging policies they can manage through it. when it comes very abruptly it's harder for companies adjust their hedges and protect their earnings. i think speed is more

in 2007 gisele insisted she be paid in euros and jay-z flashed euros in a video. after the financial crisis we were told everything was going wrong for the dollar. gigantic u.s. budget deficits were eroding confidence in the dollar, plus other countries seemed to have growth prospects that make them more appealing to investors. so what happened? the u.s. recovery is now the envy of the world and it looks like the fed is ready to hike interest rates before other major central banks. u.s. government deficits have shrunk massively and the collapse of oil prices mean the import bill is disappearing. while japan has created fresh easing programs, the u.s. dollar is once again king. mark: did you know that jay-z flashed euros in a video? anna: joe has a long memory. we will take a short break and you can join the conversation on twitter. i have been tweeting out details with the ceo of alexander the queen -- alexander mcqueen. you can find us on twitter. mark: coming up, we will take a look at alternative investments. how much is that stamp collection in your attic wort

we have the euro weakening now.f a sudden, we are seeing the banking sector begin to return to normal activity. all these tailwinds are going to be hitting a region that is struggling. jonathan: let's get to the breaking news in the last couple minutes. we knew that you he began today but they are said to begin buying german government bonds. bond yields down by four basis points today. does this become a cell the news market or does this rally in the eurozone debt market continue for the next few months? guest: i think it carries on for quite some time. there's a lot of pressure on banks and insurance companies to own high quality assets. those assets are shrinking thanks to the ecb. if you know the ecb is going to be buying until the end of next year, why do you sell today? jonathan: when you look at what the ecb are going to buy, we know they've got an appetite for negative yielding debt. that is -0.2%. is there a risk of focusing too much? let's say they are buying 5-10 year government debt. is there a risk of t

guy: what about the low euro? we have been seeing the decline of the euro for some time.evertheless we are getting down to fairly interesting levels now. how much of that is a contributing factor? hans-werner sinn: that is certainly a contributing factor to the export performance but it is also the good performance of the american economy to which germany exports. q e is reducing the value of the euro, because there is more euromoney around so the price of the euromoney goes down. that will boost the entire european economy, and he germany -- economy, germany being one of the biggest to profit. guy: can i get your take on the latest developments surrounding greece? hans-werner sinn: the ecb has already provided greece with extra credit, more than 100 billion euros while the gdp is 180 billion euros. that is quite an extraordinary help for the country. but the ecb does not have the mandate to carry out fiscal policies such fiscal rescue programs have to be decided by the parliaments of europe and mario draghi is right when he says he cannot step forward unless the parliame

many traders are buying in you guessed it euros. euro falling to a fresh 12 year low against the dollar. traders expecting to py fairly soon. >> when you look at the price action of crude oil and what the dollar did, crude oil, the loss in prices was accelerated towards the afternoon. >> reporter: and this isn't the first time the almighty dollar impacted crude prices. in 2009 when crude dropped from more than $140 a barrel to the low 30s, the dollar strengthened significantly at the same time. >> back in 2009 we saw the u.s. dollar move considerably against the euro and we're seeing that today again as the dollar strengthens, crude oil comes off. but if there is a pause in that strength and you see actually the euro start to strengthen crude oil will rise again. >> reporter: and the expectation is that the dollar won't quit. many of you have been calling for the dollar index to cross $100 earlier this year. at $98 and change we're not far away. that means more pressure likely for oil. for "nightly business report," >> joe durand jo

i want to bring up the euro. the single currency, a stronger euro.llar 0.25% off of session highs. forget parity. we have gone below parity. bank after being slashing their forecast of where the euro is going to end up. coming up, we will head to israel. and they head to their polls predict we will head to tel aviv for the latest. the beautiful tel aviv. ♪ jonathan: good morning and welcome back to "on the move.” i am jonathan ferro. the general election which can see benjamin netanyahu defeated at the polls but to retain his position as prime minister. if you are confused, i am a little bit. a man that is not confuse, elliott gotkine. he is here to explain the it all comes down to i guess voting blocs rather than the party. give me detail. elliott: that is right. essentially although netanyahu's, party which is a right-wing party which has been trailing in opinion polls, about 4 seats between that and opposition, zionist union. opinion polls one by natural right wing coalition for netanyahu and then the seats and potential allies. unlike of other co

the euro strengthen against manufacturing data.re looking at the euro trading at 109 against the u.s. dollar. earnings kick off next week and one of the big themes is expected to be the strengthening dollar and the negative impact that will have on profitability and will have 40% of exposure to international sales. china will be another big story, isn't that right? >> absolutely. we had hsbc/pmi this morning. that fell to an 11 month low missing analyst forecasts. they supported expectations for further stimulus. that allows shares to regain some ground in the close. of course the data hurt the likes of oil prices as you can see we closed just above flat in shanghai. hang seng is down about .4%. joining us now is charlie, the head of macro strategy. we have seen shares rally into the close. of course expectations of easing. when does the equity market inspired by liquidity and easing bubble burst based on the weakness in the fundamental economy? >> it's a very good question. we're being driven higher and higher in anticipation of t

the euro, euro parity has become consensus at this point. and when things become consensus, that's the time when you say you know what? maybe i shouldn't be there anymore. when goldman sachs says in six months we'll see dollar-euro parity. >> it's amazing how people at .9 by the end of 2016 i saw a couple guys. i'll take some on the face of that. i thought the euro was going to hold 1.06. i thought actually 1.08 was the level it would hold. and then 1.06 behind it and technically these are important levels. i think the differenttials, i said this to you on "power lunch" which is what's happening now what's going on with interest rates too is interest rates are so compressed and there's no real divergence and we're not seeing this -- any real difference in interest rate policy. sought currencies are how you carry out monetary transmission. why are we seeing such major currency moves. i think the ecb is different than where we were. i don't think the fed can do anything tomorrow. and i think based upon how the market's reacting i wonder whethe

benefitting greatly from the lower euro. the u.k. that has one of the economies, if you talk about outside of the u.s. where there's real areas of strength. and then switzerland. i know there's been a lot of talk how they let unpegged but some are doing well in the current economy. >> sameer thank you so much. with wells fargo investment institute. >>> to china where the government has lowered the country's growth forecast for 2015. china now says it expects the economy to grow about 7% this year down from last year's 7.5%. lowest economic growth target in 15 years. susan lee now with more from hong kong. >> reporter: this is a new normal in china. we have a chinese consumer league as the national's people congress the mcp expected by the market saying that china's gdp and the target will be set at 7% but then added some vagueness and some uncertainty in the market when the word "around." people are thinking are we going to be gutted down further and could that have a 6% handle in 2016 instead? and increased spending this year 10% mo

driving down the euro, driving down borrowing costs. let's check out the euro. we did see it strengthening yesterday, but it is back down against the dollar. we did get a little bit of a waiver yesterday. we saw u.s. retail sales coming in better than expected. suddenly, people read gaging what the fed will say next week. will they start to say, we could be easing sooner than expected? that is what everyone is focusing on. yesterday everyone saw the dollar fall. today, different story. many feel that the u.s. economy is strong enough to see rate hikes as soon as september. that is what more than 50% feel according to the bond market. in europe earnings coming from though italian luxury sector. salvador ferragamo may have better than expected earnings for 2014. that stock rises. different story for todd's. down 4%. not only is profit shy of expectations, but the dividend was cut. we get a two-euro dividend per share. the ceo sounding confident of revenues and profit. meanwhile, ubs basically flat. they restated their fourth-quarter profit, saying they lowered by

us a picture of that 1.1 trillion euro stimulus row graham. what will he be buying and when will he be buying it. they're down 2/10 of a percent and the euro has been falling for six straight days now. we are currently at one dollar 10 -- $1.10. after that we are going to 0.9. we will hit parity next year says goldman sachs. let's have a look at gold, a little bit flat ahead of that on buying program. meanwhile oil is down again for a third day -- actually it is falling down 3/10 of a percent, it had been on an upward trajectory that is about u.s. stockpiles easing that little bit. we do have a few notable earnings coming out today, top among them france's biggest retailer climbing only 7% strengthening in brazil and argentina. adidas waiting for that to open as brazil is a little bit sluggish. it is forecasting 2015 profit to rise from 7% to 10%. how will that look? we still don't know. they unveiled their five-year sale planned march twice six. there ago adidas popping out at 1.0%. we see with all of these oil affected companies, as the mark

euro dollar changing hands at 108.30. we're down by a half of 1%. >> the story has been the strengthening of the euro over the past couple of days. it's come off the highs. it did reach 110 last week it was a two-week high against the dollar. take a step back and look at the euro it lost about 20% some analysts say. a big boost for export growth here. >> absolutely. a lot of question marks. and our guest later on in the show david bloum from hsbc said it is the end of the bull run party. we'll ask why in a couple of minutes. >>> air strikes in yemen laud by saudi arabia overnight left 25 people dead and 88 wounded. according to the health ministry area of the nation. saudi arabia still deciding whether to send ground tops to yemen. speaking to meet the press, the country's ambassador said saudi arabia was committed to completing the air campaign until the president was back in power. meanwhile former afghan president hamid karzai said the use of force will not resolve the situation in yemen. he spoke to cnbc. i hope this

the lower euro is helping exports from the euro zone to the rest of the world. it's helping countries like italy, spain, cyprus here and also ireland which is really booming. so you see i think there's a lot to talk about here from the ecb when it comes to also positive news from the economy but let us also talk about the effects of qe. the potential effects. we actually have to decide those. they are signaling effects and we already have them just by the announcements but then also the effects of implementation and i yesterday spoke with the finance minister of cyprus who is presiding over an ailing economy after the bailout years ago and i had to ask him if it's actually helping them. take a listen to what he had to say. >> i'm a strong supporter of this new policy of the ecb and i do believe it will help the euro zone as a whole and of course cyprus and the benefits will be multidimensional. it will be a stimulus for economic activity and it will at the sail time facilitate the reentry of countries like cyprus into the international capital markets. so it mak

robin, what is your call on the euro? robin: we think that the euro is in a big weakening trend.have a year-end forecast of .95, we envision going through parity sometime in the middle of the year. than we actually see the trough of the euro coming around .8 in the future years. we have a prolonged weakening cycle. alix: what do you think? alix: i believe that the capital -- jens: i believe that the capital outflows is very important. it has been very forceful in the last six to nine months. i am a bit more cautious going into the second quarter. the dollar trend also matters. what the fed told us last week is that they are perhaps getting more concerned about the economic outlook on the back of the pronounced dollar strength that we have seen. i am getting more cautious on the direction right here, just because the dollar amount it really does not mean that much for the two-year trend but for the next three months or so i think it is tricky because of the dollar. alix: would you be shorting the dollar, then? jens: we actually made changes to our recommendations over the number o

the biggest one-day rally in the euro since 2000.t gives you a sense of the magnitude of how short, opposition to the markets were going into this meeting. make your money, no problem. everybody is getting ready for purity. the fed have shaken that view. 10780 is where we are. how has this all played out and perhaps some of the other markets? australia dollar, what a ramp. you were set for one of the biggest weekly rallies in a year. that momentum rating. -- seeing it come-- -- that momentum fading. seeing it come back. new zealand the dollar peripheral currencies under so much pressure. the fed went early and went for a hike. pulling back from that changes where you should be with the aussie dollar and the new zealand dollar. 7453 on the new zealand dollar dollar. mark: search -- shares of nintendo surging after the company says they mark plans to using mobile devices. it marks the end of the company resisting using iconic cha racters on smartphones. 22 people killed in tunisia. visitors of poland, italy, and germany were among tour

the euro gaining ground against the dollar but a reverse in today's trade. the euro at 1.6. we had 110 against the u.s. dollar. so janet yellen what she had to say, major implications not just for equity prices but the currency market as well. >> we'll be discussing that later in the show. we saw a yield compression across the border at the 30 year yield from 2.52% so we had more compression on that yield overnight but we did see more at the short end as one would expect of course given the nature of interest rates that janet yellen was talking about it did fall to 1.96 but i would temper the moves given that janet yellen last spoke late february. we saw yields move on the ten year below 2% to 1.9% and quickly back up to 2.1 again when the data continued to come out and i wonder whether these moves we've seen over the last 24 hours will quickly be he erased if data continues to be impressive. let's look at commodities. also a very interesting move yesterday. of course the strong dollar coming back allowed oil prices to rally. we saw brent up as much as 6% yesterday and wti u

we are back on the euro yen watch. this is a weaker euro. gold is getting near critical support levels. that is something to talk about into march and april as well. let's get to the bloomberg terminal and get some perspective. this was a weak euro. this was next to bergdorf. i was there this weekend. this is the classic court in new york. then they moved so fast. this is a museum in paris. then the headline is you can't control it. we go up even stronger and we come down. up to this persistently strong, -- olivia: he thinks we are going to 105. alberto gallo is looking for parity . tom keene: it's a debate right now. this is a snapshot of where we are with the euro. olivia: today is the day the ecb brings -- begins its quantitative easing program. tom keene: we saw that announcement about an hour ago. today marks the beginning of markets adjusted with a vengeance. the euro is stable and churning. let's go to david powell. david, good morning. what will the ecb actually do today? are their bonds out there for them to acquire? >> today is the

. -- greece leaving the euro. the european parliament is debating measures to boost liquidity as the country braces for debt payments on friday. an economic slowdown weight on demand in china. prices fell in 66 of the 70 cities tracked by the government. the decline came despite the removal -- the reduced borrowing costs. envoys say they have narrowed their technical dispute. this may not be enough to forge a packed -- a pact this week. negotiators have given themselves until march 31 to find a framework agreement. caroline: join the conversation with us on twitter. let us know what you think of the show, the story, the u.k. budget that we are focusing on today. just about to put out a tweet about facebook unveiling those plans to use messenger to spend money. manus: it is budget day in the u.k. what can we expect from george osborne? our next guest says higher growth and a lower deficit. that is after the break. ♪ mark: welcome back. george osborne presents the annual budget later today. what can we expect? our n

euro freefall. not quite.cy dropped below $1.05 for the first time since january 2013 before bouncing back to $1.06. dollar weakness is the story this morning. i'm going to bring you that exclusive interview with ewald nowotny later on in the show. have a listen to what he's got to say about negative yields. for now, it is about equities. futures a little bit lower. down by four points. the dax pretty much dead flat. let's get the caroline hyde. caroline: let's check in. 12 seconds into the open and we are looking at stocks to gain a little bit. the ftse up 0.2%. france falling a little bit. the stoxx 600 7.5 year high. that is where we closed yesterday. there is room to go further, so says wayne bowers. he is head of investment ceo of the european element. almost $1 trillion of cash to

where will the euro go to? a parity on the euro-dollar. let us see what is going on in the markets.oline has your market check. >> top of the leaderboard. up 16.5%. the united kingdom. better love from china. on by billionaire. -- owned by billionaire. he is buying shares. synergy is to be had with some of the companies. feeling the warm breezes blowing from that particular purchase. this particular company trading up on some speculation in the market. oil and gas engineer. perhaps ge capital is buying it up. here we have it at 180. people are buying it. meanwhile, on the downside, -- this is on the back of a sale of shares. owns 40%. that is a company that does testing in their laboratory. selling 10.9% on this particular company. when dell, wants to be of to splash the cast -- splash the cash. bureau veritas on the downside. >> caroline, thank you very much. the prime minister made his first visit to moscow yesterday. one of the items is the situation in the ukraine. >> we were of my -- we were of one mind that the parties must agree on the 12th of february. i am certain this open