i am jonathan ferro. let's get back to the top story. ruble ending a seven-day route that wiped off nearly 1/5 of insider. the russian finance ministry is selling foreign exchange calling it extremely undervalued. it hit the lowest in history yesterday and the central bank hiked rates to 17%. still what does is bob parker. i'm looking at dollar-ruble. it is coming back a little bit now. the ruble is down by 3%. it is reversing over the next to go hours. what can they do to spur the currency? >> this is a classic short squeeze. thate at a situation intervention it short-term will work. we need more fundamental long-term action to make the sustainable. i can argue that the ruble is oversold, and it is very cheap. the finance ministry has stated the obvious that it is under valuable and we can all agree with that. what is going to turn around those capital flows? that is the fundamental problem with russia, which is lack of foreign and russian confidence in their own economy and markets. capital flows had to turn around. >> there is a meeti

i'm jonathan ferro.e stream online, on your phone, on apple tv and amazon fire tv as well as normal tv. let's get back to business. almost 9%, that is how much the value of sterling has fallen against the dollar since july. james bevan stays with us and says that 70% of earnings coming from overseas here in the u k the relative performance of u.k. equities is as a much about sterling as anything else. the story is not talk much about. we talked about the weakness of the euro and the yen. we haven't discussed the weakness of sterling. >> it is important in support of companies like ba he systems -- stems. the current account is a really dreadful situation. we have had a lot more investment than most have expected but we do not have improvements in the current account deficit. i don't think the bank of england is going to do anything today. when i think about where our currency is going, the standout currency trade has got to be the weakness of the yen. buy in good quality companies sumitomota, like electr

i'm jonathan ferro live from london.hese are some companies on the move. $2.8e vein has offered billion to buy a controlling stake in sika. biggestbain is europe's building material supplier. is the biggest loser on the stoxx 600, down more than 12% this morning. former ups global management ceo has been appointed to leave australia's treasury department. tony abbott says that he will begin a five-year term on january 15 of the next year. the change comes as the nation grapples with a deteriorating budget outlook. merck is said to be in talks to buy a startup for more than $7 billion. merck would pay about $100 per share. the deal could be done as early as this week. another company we are watching this morning, sony. the company reels from the hacking of its entertainment unit. it appears its playstation network may have also been targeted by hackers. here with more is caroline hyde. gamers couldn't access the playstation. you have to fill me and. how does it work? >> if you are using the network online, you found that

bloomberg economist david powell and our very own jonathan ferro. >> jonathan ferro will be at the helms we bring you to news conference live at 1:30 this afternoon. he's excited. you should be as well. what else is on our radar this morning? >> russian president vladimir piten is making his annual state of the nation address to lawmakers. he called for harsh measures to fight speculators against the ruble. 37% e airline has scrapped of flights. this comes after work stoppages on monday and tuesday. the c.e.o. spoke to bloomberg. >> i'm sure that we made a significant move forward today by addressing our partners in the cockpit with the fact that we believe that there should be a mediator bringing us together on the difficult issue of transfer payments for early pension. at the same time, we have communicated through the union that we believe our unsuccessful talks about the project should be -- there is no solution insight. the reason for the striking action i think is something that hopefully a mediator could come to a fast solution. >> now an interim investigation by sony pictures ha

i'm jonathan ferro. let's talk about ukraine.d russian separatists are closer to resuming peace talks. there are hopes to an end of the fighting that has rocked the eastern region for most of the year. president poroshenko spoke out about the need for a lasting cease-fire. is decisivelyt important to have a sustainable cease-fire. we have a strong guarantee from the russian general that the .ease-fire will take place unfortunately, we have several theccessful attempts when russian and pro-russian rebels have promised to keep the cease-fire. >> joining us is ryan chilcote. i've kind of been desensitized to the word cease-fire over the last year or so, with good reason. >> you heard the ukrainian president being tentative. it is significant in the sense that this could be a positive. you think about this coupled with the fact that russians resume gas supplies to ukraine yesterday, that is good news. it is not a simple relationship. we have another one of these cold war style incidents where you had a couple of f-16s rounding up rus

jonathan ferro, we looked at russia.the fed in the mix. >> particularly in the fx market, a hawkish fed and a stronger dollar, forget rate hikes. it could blow out not just russia but a couple other emerging market currencies as well. let's get to the bottom of the issue in russia. let's remember what sanctions are about putting pressure on russia and punishing russia. weak currency and if a collapse of the currency is the consequence, so be it. if janet yellen takes on the russia question without justifying how it impacts the u.s. economy and starts thinking globally, if you were barack obama, when you call her up? the whole point is to punish them. >> independent central bank. >> i'm just saying. >> it is domestic policy. >> absolutely. >> why would they even be looking at russia. to create any instability within the u.s. and within the u.s. markets. is economics of it, the u.s. an increasingly closed economy. what is the feedback loop going to be of rates at 17% in russia. rates that may have to go higher and other em

i'm jonathan ferro. 30 minutes into the trading day. this is happening. the ftse 100 is higher. 40 points. the stoxx 600 up by 0.58%. as we sawns, just yesterday. the biggest rally on the stoxx 600 since 2011. a volatile couple of weeks. strong finish to this week. will we get a stronger finish in 2014? the dax up by 50 points. we go to ryan chilcote. >> we start in france. agreeing to buy xerox. investors love it. it triples the french company's exposure to the united states. air france, ouch. issuing their third profit warning. they will push back the purchase of 10 boeings. basf, the world's largest chemical producer. they shelved a deal, canceled the with gaspromm, blaming the difficult political environment. back to you. >> thanks very much. here are the top headlines. script. rips of the the french president broker united front after suggesting that russia has been sufficiently sanctioned -- brorke a united front after suggesting that russia has been sufficiently sanctioned. hollande suggest that maybe be time to start de-escalating the sanctions. consider that the gesture

i'm jonathan ferro at bloomberg's european headquarters in london.his is how things are shaping up. a down day. the ftse 100 down by 1%. the stoxx 600 off by 1% as well. yields in germany, record low. 6.4% on the 10-year. wti south of $60 a barrel. five-year lows in the oil market. since 2009.n't seen let's get some stock specific news with mark barton. ring down 1.5% today. ceo leaving, creative director leaving as well. the head of the parent company will take over running gucci on january 1. guccif course comes after has gone through a turbulent time as of late, struggling as customers switch to labels they perceived to be more exclusive. kering 1.6% lower. hugo boss down by 3.4%. plans to sell 4.9 million shares off. permira's sale of an 11% stake to institutional investors managed by merrill lynch. households in england and wales received a boost today. britain's water regulator published a final determination on pricing. the averagee customer bill fall about 7% next year. united utilities and severn trent are the big two. shares are rising. ban

i'm jonathan ferro at bloomberg european headquarters in london.is how things are shaping up right now. ftse 100 is down by 0.9%. the dax down by 13 points. the stoxx 600 down by 0.5%. guess which industry is weighing on the markets, oil and gas, the energy companies. brent getting crushed once again. specific nowck with caroline hyde. >> looking at oil but also the m&a this morning. we are actually seeing a few stocks on the rise. top of the leaderboard, balfour beatty. not often that you see balfour beatty winning, but it is only up because we are selling some assets. it could be one billion pounds itsash, uploading public-private partnerships. tocould be selling that over john lang infrastructure fund. 5%.while, altus up again, it is m&a driving it higher. this time it is the buyer. why the shares going up? people like the idea that it is eyeing up other assets in portugal. they did by sfr's unit earlier. time, smaller amount, 7 ,illion euros, just in excess putting it ahead of a rival bid from bain. we could clt's expanding in europe and invest

i'm jonathan ferro in london. this is "on the move."rrency and sanctions from the west all major headaches for vladimir putin. the ruble weakening again today. we have seen the forecasts from the economy ministry. shock horror forecasting what everybody thinks is going to happen anyway. a recession. is that inevitable? >> i don't know if it is inevitable but it looks like it is coming. the oil price downtown bode well for russia. we just did a very nice survey that gives us a picturor what is going on inside of the services sector. there is pain that we have not seen really in the last five years to be examine. that is hsbc's p.m.i. survey. we have a contraction. 300 businesses. how business is going. they say it is contracting more than economists thought. said it would be contracting by worse than they have seen since twine. we're getting a picture from the -- since twine. geerting a of the other side of the economy. how much the world needs russian oil and how much they are prepared to pay for it. that dove tails into what we got fro

i'm jonathan ferro live from the city of london. time to talk greece.hat could be a risky gamble by the prime minister. after the summer he called a snap presidential election moving the vote scheduled for february 2 a week from tomorrow. week from tomorrow. it feels like 2011-2012 we talk about the election but the panic is not there. looking atpeople are greece as more of a stand on its own problem. i said this a number of times and everyone -- every time i have been shot down saying if there is a crisis in greece it will spread contagion and the rest of europe will interrupt likenight josh -- just chestnuts at christmas time it will be a whole different problem. greece has gone to the sidelines in the last couple of weeks as we have had all the concern over the bailout we have seen greece balloon out what the rest of europe has tightened and then we spreaden greek -- greece -- titan back in. -- tighten back in. what's happening today is something we've seen time and again where the leading political party puts its reputation and the country on the li

." >> jonathan ferro has had a busy morning. me to start?ant stop started high and dropped by 1%. ftse state in negative are sent. chineseks, the week numbers. thehe ftse started in negative. -- the stocks, the weak chinese numbers. the other stocks, the energy stocks on back of the guess what? this one right here. brenda drops. drops.t what does that weaker oil price feed into? a weaker ruble. this is the chart of the day. 1:00 a.m., moscow time, the central-bank hanks -- hike rates. the biggest single increases 98 -- 1998. ruble weakness/dollar stores. of 1% on dollar ruble. a weaker ruble even with the aggressive central-bank rate hike. crisis., back to you. >> thank you very much indeed. a crisis. we are not done yet maybe. another story. tested the waters for a possible sale of this iconic sportswear maker. hans nichols has the details on what is happening here covered -- happening here. why is caring interested in selling the brand? own gucci and pull the and two on two fundamentally different companies, with boards, the margins are sold the -- with sports, the margins are s

jonathan ferro on the global market.f how stocks are trading right now, the dow is off, the s&p and nasdaq, all in the red right now. the dow is down by about 71 points, hitting a low of the session. in the meantime, watch your back, ronald mcdonald. wendy's is ready for a faster flight. ♪ click on a different -- >> on a different note, one day you might be getting some different than hashbrowns. when he is fading out breakfast. in thelready saturated market by countless others. still, the ceo emil brolick eye nues to i breakfast -- breakfast. >> we have tested breakfast several times over the years. we feel that the only large -- as the only large national chain that has not gotten into breakfast, it's difficult to get into that space today and commit the kind of marketing resources we feel would be nice very to entrench ourselves successfully. and by the way, do it in a way that we can not just break even, but make a good amount of money. we want to make sure we can do it in a highly profitable basis. and we felt upon

or jonathan ferro will show you what is happening in the markets. >> that is very nice of you.r,ftse up. selloff in one-day the dax. you remember the mess that was october 15. pretty industrial -- of industrial numbers. 0.2%.g for a positive it did not come. it doesn't matter because stocks are higher. in paris, up. you look at that map in his says stocks higher but outside of that, outside of equities, classic risk off. , political risk in greece, what might happen there, will the pro-minister get his candidate through to be president? if not, a means snap elections. let me give you the perspective. 8.74%. december 5, 7.2%. that is a big move. reese, higher. -- greece, higher. risk off in the bond market. same story in the fx market. new k, lower. the dollar getting weaker, the yen and stronger. pretty powerful. >> thank you, indeed. tom keene joins us now from new york with what we're looking at. of me yesterday, but i will make up for today, a belated happy birthday. >> what i did was ignored. birthday asvery un- well. these markets are most amazing. we occur flattening with

welcome to "on the move i'm jonathan ferro in london. welcome back to work.tocks since 2011. ugly. sydney siege. the armed standoff between police and a gun man in the city's financial district enters its 10th hour. we will bring you all the latest on the story as that develops. abe's election landslide. shinzo abe celebrates as the ruling coalition gains more than two thirds of the seats in the lower. the lowest turnout in the postwar era does show signs of disillusionment. oil at $60 a barrel. the united arab emirates says opec won't cut output even if prices plummet to $40. the stare down between opec and shale production continues. i'm looking at futures markets. euro stoxx future is pretty much dead flat. dax futures, about 0.1% higher. let's get straight to the market open. >> we have had technical issues in terms of futures markets in europe, so that has discombobulated some of the market opens. you are looking lower in london, down 0.4%. global equities lost $1.2 trillion in value. that momentum continues this morning. volatility rose. yields on treas

i'm jonathan ferro in london. 30 minutes into the trading day, this is how markets are trading.tse 100 up by 0.2%. the stoxx 600, a little bit of a rebound. last week, ugly. european stocks down. the collapse in the oil price feeding into a collapse in energy stock prices. yes which one has the biggest rebound today. it is oil and gas. let's get to caroline hyde. >> oil and gas, top of the leaderboard. currently up almost 9%. m&a is off the table. they are not splashing their cash. akin november, they offered 1.5 billion euros to cgg. biggestis the services company in europe. they were offering money to buy up cgg. this company said, we don't like your offer. look how much they have fallen today on the back of this. this is clearly the biggest fall since 1999.k all this related to the fact that m&a is off the agenda. clearly the volatility in the oil price also added to some of the concerns surrounding that deal. not to mention that the board didn't want to go ahead of it. it is a season to be jolly. let's talk greggs. it is currently trading at a record high today. 684, we are

. ♪ back.come i'm jonathan ferro at bloomberg's european headquarters in london.e little push higher this morning. ftse 100 up by 40 points. the dax moves higher by over one per -- by over 100 points. ecb stimulus in january. we will talk about that and more. now, three stocks to watch with caroline hyde. >> one of the german stocks popping higher this morning, positive news coming from the german factory orders this morning. positive news coming from goldman sachs for this stock, united internet. currently up almost 4%. this stock., buy it is an internet provider in germany and they say the market share can continue to grow. strong volume growth on smartphone use in germany. pete an eye on united internet. keep an eye on the property market in the united kingdom. having had the news on stamp duty overhaul, berkley group up almost 4%. 55% uptick in profit. their first half looks strong. they say there is a returning to normal market in the u.k. with good underlying demand. please, keep things consistent. they are worried about uncertainty after the elections. to s

i am guy johnson in for jonathan ferro, who is not here.equence talks about francine lacqua, who is not your either. i'm the only one here. 30 minutes into the trading day, our markets shaping up? broadly higher. most markets are trading higher. it is very strong session in the u.s. yesterday. the bulk of that has been priced into the european session. nevertheless, the positive momentum is there. a lot of markets not open today. for work.g up they are around europe, enjoying themselves, waiting for christmas. german bank is not open today. in terms of stocks that are on the move, let's take a look at what is going on. ryan chilcote is here with what we need to be watching. >> nevermind the fact that next to no one is trading today. there are stocks to pay attention today. smith and nephew on fire. er hase known that stryk been interested in for a wild. they make artificial hips and medical devices. that deal could close within weeks. to pay attention to is heidelberg cement. finally, ocado. we have to do the online brochure. despite the fa

i am guy johnson, standing in for jonathan ferro.on, and we are moment away from the start of european equity trading. what are we watching this tuesday morning. let me tell you. a greek political drama. we are two hours away from a key vote that could set the stage .or early elections outlook negative. saudi arabia says it will not cut reduction even if crude gets as low as $20 a barrel. we await crucial u.s. inventory data. that is out at 3:30 london time. a different story for stocks. the s&p 500 hit another all-time high. that's what we are watching. beginningarkets just to loosen up. >> we are going to be checking on whether we can sustain this christmas rally. a festive feel inequities. could it be a sick -- a sixth day we see gains. we are in the green. record highs, not only on the s&p 500 and the united states but also the dow jones as well. saying, itne quote has become the perfect storm to the upside. europe following up on the

i am jonathan ferro, moments away from the start of european trading. warning they say their full-year trading profit will not exceed 1.4 billion pounds. the bad news keeps coming for ceo dave lewis. a move which could possibly parliamentary elections as early as january what the radical left-leaning party ahead in the polls. chinese stocks meet gravity after gaining almost 25% in the last month alone, the index drops as much as 5%. record trading and i will bet it has moved too high, too fast. later this hour, dealing with the virgins we speak to the blackrock chief investment strategist about 2015. but now you want the market open and manus cranny has got it. the troop of stocks will be down to tesco and retailers. germany imports falling by 3% and european equities will pause as it were. texas intermediate its lowest close since 2009. the journal carries a story that the fed may debate -- move closer to removing the phrase

i am jonathan ferro. moments away from the start of european trading.numberobs day, the big of the day, 230,000 is the guesstimate. that's how many economists say we have added to the u.s. economy and unemployment is said to stay at a six year low. the european central bank expects to consider a bond buying proposal as early as january. this as the german central bank cuts its forecast for the europe's largest economy. in the u.k. construction company rejects a one billion pound offer from john lang infrastructure fund for its portfolio of government-backed projects. theour beatty says projection falls significantly short of its own value. we will talk about that. right now i'm looking at futures, higher across the board in europe. that is the futures market. the real cash market. >> look at the pop happening in france, almost 1%. interesting to see how germany will open because check out german factory orders this morning. expectations, a 2.5% increase for the month of october.

jonathan ferro, over to you. >> and ugly week for european stocks last week. getting any rebound today. gains in italy and spain and london. we are up by 8/10 of 1%. let's by energy stocks. they are up by 2% the last time i looked. that is on the back of the oil move. a stunning collapse since the june high. we go from here? what levels will opec tolerate? at 60.n't blink they won't blink at 50. they won't blink at $40 a barrel. playingodity story against the emerging markets, down the most in six years. that is the emerging markets story. in the bonds market, yields are higher. look at the levels coming up. 2.1%, we are higher by two basis points. lower, yields get compressed in the bond market as well. also the, the story is european central bank story. the potential that they could buy government bonds. we will leave you with a bloomberg survey. just passed to 19%. this is where the bar is right now. >> thanks so much. will the on in about 25 minutes. what are we looking at today? summaryught jon ferro's was dead on. what i would emphasize is we've barely s

jonathan ferro is with us. we saw a little bit of a rally in germany.0,000 points. now they are back to tenths of 1%. up 5100 here in london. oil majors are advancing costs. this is a bit political. the focus is on crude. crude is not rallying. it was up 3% yesterday, but down 1% today. you know the story. i will bring you the story over the last year, it's been like this rid oil is moving south. it's down 35% on the year. between brentip southat is going on, move . how are they tied together? the ruble is getting hammered once again. this is almost vertical. the dollar is worth 60% on the russian currency. they are predicting a recession next year for russia. contraction is 0.8%. they were looking for growth of 1.2%. the relationship between oil in the ruble is this, if we see $60, forget this one. it could go as high as 62 rubles dollar. >> thinking very much indeed. it is a five minutes to go until "surveillance" comes on. comment team is here. was an abrupt move in the ruble in the last hour. we have the perfect guest talk about this. pimco will joi

jonathan ferro is standing by in london. mario draghi says he will do anything. will he do anything? >> that is the big question. you look at the economic backdrop. there is no economic growth. politicians look like they are asleep. look like they are asleep. today isuestion whether they will pull the trigger on quantitative easing. and is the subject that q they will be dominated by when the press conference starts. he has hadhe issues its even if he wants to go, the germans may hold him back. how do you expect the germans to react? hints.ave had some those hints are quite clear. those hints are quite clear. there is a real conversation about the effect of net -- iveness. it just will not be the same as what you saw in the u.s. problems are internal and specific to individual nations. pushing the euro down, quantitative easing might achieve that area but a lower euro is not going to solve all the problems. >> has ruble dollar sold russia prosper problems? what do you expect to hear it 8:30? >> it is the forecast. the forecast for growth and the forecast for infl

i'm guy johnson in for jonathan ferro.way from the start of limited european equity trading. stocks will trade for half a day in the united kingdom in france and spain and they are closed in germany, switzerland and greece. here is what we are watching this christmas eve. over in the united states the dow has broken through 18,000 after a big g.d.p. revision in the u.s. the dollar as a result hit its highest levels since 2006. stocks in japan have followed suit. the nikkei closing out at 200 points. it is a very different story in russia it is a nation takes steps towards junk. the s&p says it may cut russia's credit rating. meanwhile vladimir putin prepares to bail out banks as he faces an uphill battle in 2015. so that is what we are watching. the european markets limited european market open that we're about to see is happening as we speak. let's find out what is going on. caroline hyde is at the touch screen. >> thank you very much, guy. yeah, a little bit red on the open. flat on the ftse 100. off by .10%. what blowou

jonathan ferro is on top of it all -- quite literally. >> yes, quite literally.re taking a little bit of a beating. off by 1% in spain. trading about $65 per barrel. look on the map. greece. political risk is back in focus. calling aninister is earlier than expected presidential election. we don't know who his candidate is yet. if he wants to get his man through, he needs 25 opposing lawmakers to come on his side to make that happen. if it doesn't happen, snap elections. that is the unknown for greece. , here is the story. oil stocks have seen a lot of trouble. retail is the second worst performing sector this year. look no further than tesco. the stock is down by 10%. without the bad news had stopped. profit warning this morning. -- we thought the bad news had stopped. profit warnings this morning. the ceo has been on the job 100 days. the stock is down 26%. guy, you love the line. helps.y little that will be the story going forward from here. incremental gain. we will find out in january how he is going to turn the business around. let's give you an update on w

jonathan ferro on the markets. it is time to take a look at 2014's best books.vey. we talked with policy makers, economists, asked for their favorite reads for 2014. the highlights are in front of you. who were we asking? give us a sense. the people, the caliber that we were talking to? >> it was a great range this year. steve schwartzman, a billionaire from blackstone give us his choice. john kerry was good enough to list four books he enjoyed as he traveled the world this year. a really great list. about 60 names all on bloomberg now. >> i love this. this is now bloomberg's position. we're now the third year of the best books of the year. are you surprised more financial books than usual? >> we're still going to the people who read bloomberg and watch bloomberg and write for bloomberg. the shadow looms larblinger. >> the survey skewed. >> towards the bloomberg readership. the financial times. this was the most popular work. martin wolf, "the ships and the shops." mong them choosing his book, hildebrand, fisher, his own book was on the list a couple of years. t

i am jonathan ferro in the city of london. what a 24 hours we have just had.e morning brief. political drama. the first round of greece presidential elections good trigger snap elections. the ruble remains at record lows after the central bank monster rate hike. can they prevent a full crisis ripping to the russian economy? will yellen reform forward guidance and keep rates low for a considerable time even as russia's financial dial-in a continues to unearth global markets? those of the three things we will be watching this morning. u.s. stocks 50 futures down 50 points. dax futures down 100 points. will we get another lower open? >> brace yourself. what a roller coaster we had yesterday. 1.3%e point we were down in europe but closed 1.7% higher. are we going to see that optimism? unlikely. we are currently opening down 1.3% in france. up by .5% in the 5100. asiaing over from u.s. and trading. both closed lower. 15%.ility is up by it is the highest in two months.

i'm jonathan ferro. moments away from the start of european trading.ing brief. chinese low-inflation. factory prices drop for a 33rd month in consumer prices rise at the slowest pay since 2009, triggering plenty of talk whether there is cause for another rate cut. japanese stocks plunge. the nikkei drops 2.5%. europe asading day in greece steps back into crisis mode, driving the equity market to its a guest one-day drop since 1987. a new french revolution? the nation's minister of economy introduces a new bill to jumpstart the economy after slowing to a virtual halt. futures looking for a little bit of a rebound. euro stoxx 50 futures up 40 points. we could get a little bit of a rebound. manus cranny. yen --y going into the it is performing and delivering, as it does. in moments of reflection, this is the euro down, the yen rising. we have a little bit of a move in dollar-yen. you are seeing probably one of the strongest three-day since we have seen since the middle of august 2013. the reason i'm starting with foreign exchanges because volatility is ba

jonathan ferro thank you for giving us the latest. >> great to hear that perspective before we go torence, phil nichols you do a lot on etf's? people are kind of looking to get exposure across different geographies in a number of different ways there are a lot of multinational u.s. companies with foreign exposure as well. 1.05 to 1.19yen go does your world change? >> a little bit on the margins of what people care about but people are still trying to buy stock at good values. it is a matter of how the import-export game goes. the real extreme euro raise will change decisions from one point 28 to 1.24, not a big change. >> look at the italian 10 year. the one question we keep coming back to and become back to every day, when will the germans change their mind? >> i'm asking when. >> i've given up guessing. agree, there is the intransigence -- >> but city a data check because it doesn't seem like there is that much movement following the ecb decision not to do anything with the rates. a modest gain here of 1.6 points and the 10 year yield will be up a little bit to 2.9%. euro-dollar 1.