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tv   On the Move  Bloomberg  May 22, 2015 3:00am-4:01am EDT

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says growth is too low across europe. the last chance, that is the message from investors to the co-ceos of deutsche bank after they emerged with just over 60% of investors voting in their favor. we will talk about banks later. i'm looking at futures in london pretty much dead flat. dax futures dead flat. euro stoxx futures dead flat. i'm relying on manus cranny to make this more exciting. manus: it might be a little bit difficult. a lot of people are focusing on what draghi has to say. he made those opening salvo comments last night talking about lower growth. you also have janet yellen later in the day. we have the longest winning streak in stocks. looks like we are about to break that. a little more investment spending than consumer spending going on. yellen draghi, carney, all speaking in riga. no real optimism coming through from that.
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no substantive answers coming through at all. harris unchanged. the dax has yet to get itself open. this machine is not helping me today. waiting for richemont to open. down 8%, nothing to laugh about there. they are not changing prices of their product. cartier watches you think of those exclusive brand names in the richemont family and their sales are under pressure. areva bank up 8% yesterday. i can't even talk for long enough to get those through. let's move it along. dollar down, yen strengthening. bank of japan leaves
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quantitative easing at ¥80 trillion. will they do more? that is a subject that you will focus on. we have the biggest weekly decline in yen and rise in dollar since february. morgan stanley, they essentially say, there's the overall picture for the past five trading sessions. they maintain they say buy dollar-yen, by dollar, selye in. the stocks around the 118.70 level. i leave you with a last look at sterling. back to some of those luxury stocks, we have an opening price in richemont. here we go. there you go, magic.
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down 3% on richemont. the read across is on to swatch. maybe they will have to reconsider their pricing policy. jonathan: manus cranny, what market intuition. thank you for joining us. the ftse 100 up by 0.25%. the dax up by about 0.1%. we will talk about that later in the show. i want to take things over to asia and turn our attention to japan. the boj keeping its ¥80 trillion stimulus program unchanged. willie is in tokyo now for more. great to have you on the show. by not altering policy today, we've got to talk about the state of the japanese economy. the boj seeming to be a little more optimistic. is that misplaced? >> certainly, japan fell into recession last year about april
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2014. the tax increase was badly timed. japan was badly shaking that off. the economy is stabilizing to some extent. the most recent numbers have gdp growth at about 4%, which is reasonably optimistic. when you look at the breakdown of the numbers, the gdp report is not as strong as people expected. the boj is taking a wait and see view of the economy. they have done a lot in the last few years. they are taking a deep breath to see how things work out. at the moment, they are looking at the economy and saying recession is over, we will see how things are in 3-6 months. jonathan: if i go back to 2013, when stimulus exploded, i thought by 2015, we were kind of near that 2% target. we are nowhere near it.
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if you could read the effort so far, what would you give them? willie: i would give the boj a b+. i would give the japanese government may be a c-. inflation in japan is different than in other places. deflation here is partly about week confidence in the economy. things are too expensive in japan. prices have to edge lower in china. deflation is not only about the bank of japan. what we need is for the government to implement the structural reforms that prime minister abe has promised. he needs to make the economy more competitive. he needs to tweak taxes to increase startup activity. he needs to get companies to pass along the benefits of the week yen. we are waiting for the government to follow suit. one of the reasons why kuroda is not moving today is saying to
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the government, it is your move. it is time for you to do your part. we haven't seen that thus far. jonathan: in the back half of this year, things could get interesting. you have a federal reserve bid. you've also got a series of economists from surveys that is think the boj will move again. what does the fed hike mean for the bank of japan? willie: it complicates things for the bank of japan. as the fed posts liquidity, japan will have to make up the difference. regardless of what the fed does the boj will be moving. the boj is the only game in town at this point. the government hasn't come forward with these structural reforms. in many way, the onus is on kuroda. when you look at the level of demand in the japanese economy things are not as healthy as you would expect.
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i think the boj has done a good job thus far. there's only so much they can do. because the government is not doing its part, i expect the boj to come up with qe3, qe4, in the next few months. jonathan: you've done so much work on the bank of japan. what is left for them to buy? the pension fund, the big government pension fund, has already had to get out of the way. what can they buy? willie: they can buy more asset-backed securities. they can buy more mortgage backed securities. i've argued that they should consider giving money directly to japanese people in the form of data cards, if you will. the money they are pumping into the economy is sitting on bank balance sheets. no one is borrowing. no one is lending. the boj has to figure out a conduit to get money into the pockets of the japanese people. we haven't seen that thus far.
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the boj has done so much. why not go a little further? jonathan: willie pesek, great to have you on the show this morning. we are joined now by james bevan, chief investment officer. he oversees over $10 billion in assets. that sounded a lot like helicopter money. do you think that is a solution? james: we were talking about it 25 years ago. it is and it isn't. japan faces enormous demographic headwinds. the shift in productivity of around 15 percentage points over the period that japan's economy has been under the crash, is pretty well matched by the number of people who left the workforce. i'm sure the bank of japan recognizes this challenge. quantitative easing is now encouraging a heightened savings rate. people say, low interest rates
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you want to maintain the value of our assets. i would argue the bank of japan policies may now be counterproductive. jonathan: the problem rather than the solution? james: you could argue that they are seeing the same in germany with the ecb policies, people hiking their saving rates to preserve their savings. therefore, what is the key? it seems to me that the key is the government is encouraging companies to do more. i can already identify several world-class companies that are up for the challenge. the companies that have strong cash flow yields, that have an excellent position. i do think the bank of japan will remain on the jgb register. they will continue to hold japanese government bonds.
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they will hold them through to maturity. jonathan: they are already a huge buyer of japanese government bonds. they are the biggest buyer of e.t.s. in japan. if they want to move in october, what are they going to buy? james: i don't think they are going to try to stimulate. i think they are trying to ensure that there is no collapse. most investors recognize that there is no global value in the jgb market. that says, we have essentially no carry cost in terms of cash rate. we will hold these bonds on our balance sheet and take that against cost of cash, and we can afford to take the hit in a way that private investors cannot. jonathan: i read a great note about bubbles. one of the quotes was, bubbles are things you get fired for not
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buying. is that the nikkei at the moment? you know that fundamentally things aren't right but you know what the bank of japan is going to do, so you buy equities anyway? james: in global terms, japan is one of the big beneficiaries of higher bond yields generally. jonathan: why is that? james: if higher bond yields are a trade, if people are becoming more confident about global growth, japan has operational leverage. japan has ample supply capacity but inadequate demand. demand rises, japan will make money. i think, when i talk to people supporting japan, they believe we are going to see a pickup in global growth. that is not of you i share. -- not a view i share.
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they have so much cash on their balance sheet. if only they could pay that out the return on equity would double. jonathan: i had a conversation about the stewardship code in japan the change in corporate culture. james: i see no change. absolutely not. jonathan: other people do. you start to see the buybacks coming through. people say things are changing. you don't share that? james: i see a small number of companies that are used to operating into the international arena. i see domestic companies who still don't get it, who still have board structures that look like they were born in the 18th century. jonathan: back to what you said about the bond market. reflation is good for japan. what does that mean for the japanese government bond market? james: that is one of the reasons the bank of japan knows this risk. it is to manage the decline.
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i think this is all about managed movement. jonathan: let's just call it what it is. james: exactly right. jonathan: james bevan. he is going to stay with us. as we head to the break, there is so much going on. let's get a picture of the markets. ftse 100 up i about 0.3%. the cac 40 down by about 0.1%. the dax, monday, tuesday, big move higher. wednesday, a breather, thursday a breather. looks like friday is a breather too. on the week, we are up 3.5%, the most since january. the markets are busy for most of the week. central banks look at this. 9:00 u.k. time, mario draghi speaking in portugal. governor of the bank of england, mark carney also speaking midday. 6:00 p.m. u.k. time, janet yellen speaking in the u.s. do not miss those.
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bears, put your hands over your eyes. a lot of data coming out later as well. we will get a reading of german business confidence, then u.s. inflation figures. if that is not enough, we've still got a show to bring to you. coming up, and shoot jane crisis of confidence. investors are giving the deutsche bank ceo one last chance to turn things around. later, greek optimism drying up. alexis tsipras, angela merkel, and hollande up past their bedtime. then crude headed for its longest win streak ever. all of those stories and more coming up on this show. ♪
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jonathan: good morning and welcome back. i'm jonathan ferro. this is "on the move "on the move." let's get you up to speed on where not to trade this friday morning. the ftse 100 pushing higher. the cac 40 pretty much unchanged. in frankfurt, the dax, quite a trip this week. the last couple of days have been dead flat. dead flat again today, down by just a couple of points. the ftse mib in italy, unchanged. have a look at the fx market.
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euro-sterling has been the big want to talk about. four days of losses, coming back with a day of gains. yesterday in the fx markets, all about pound power after those stunning u.k. retail sales. in the, that he markets, wti pulling back by 0.1%. almost dead flat at $60 a barrel, but still heading for a record 10th straight week of gains. we will talk about the oil market in a little bit. for now, bloomberg's top stories. mario draghi and other policymakers are in portugal. draghi said economic conditions have improved in europe, but growth is still too low. draghi will give the keynote address today. prime minister cameron says he wants to start talks on european union reform in riga. cameron says there will be ups and downs in the negotiations. >> it is in britain's interest.
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it is also an opportunity to start discussions about the reform of the european union. there will be ups and downs. you will hear one day, this is possible the next a, something else is impossible. one thing will be constant and that is my determination to deliver reform of the european union. so they get a proper choice in that referendum that we will hold. jonathan: richemont reported an unexpected decline in april sales. shares are down more than 3%. it has been a big week for the banking sector. six of the world's biggest banks agreed to pay $5.8 billion in fines related to a currency rigging probe. they all pleaded guilty to felony charges. swiss bank ubs avoided felony charges but will pay $203
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million over libor charges and an additional $342 million to the fed. elsewhere in the banking sector deutsche bank had this big agm and they had a lot of shareholder pressure on the co-ceo's. hosni goes had this report. hans: the leaders pledged to stay in close contact. they had that two-hour meeting in riga. it broke up without real tangible signs of progress. greek officials are talking about being very close to a deal. we have heard from mr. dombrowski, talking about more progress needs to be made. in some ways, there are opportunities for the sides to come back together. everyone still is in riga. there is a meeting scheduled between mr. tsipras and mr. juncker. the pressure is very real.
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no one really disputes the deadline. in early june greece will not be able to pay if they don't get a new infusion of cash. back to you. jonathan: hans nichols from frankfurt. james bevan still with us. the banking sector, where on earth do you want to start? i guess we can start with deutsche bank. the agm yesterday, hearing from representatives. the complaints sounded a lot like complaints about any bank in europe. why is deutsche bank different? james: long-term shareholders feel immensely irritated that deutsche, that was the lion back in the 1980's and early 1990's said, we are going to because she is and they didn't grow. as a result, santander became worth more than the entire german banking sector put together. deutsche said, they have taken
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too much risk. deutsche of course became unstuck in the global financial crisis. people are saying, we didn't get much of the upside. when is it all happening? it is very clear that the banks, as one of the mechanisms, are being blamed for what is going on. german people are very nervous of economic conditions. jonathan: it is not clear to me what investors would like deutsche bank to look like. what does deutsche bank need to look like for james bevan to say, there is some room for this? james: it needs to be ruthlessly efficient. if you say, who are the winners of banking, i would day in tesla, credit agricole in europe , they have national strength, they have retail business to die for those are the ones to look
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for. if one were thinking about the investment banking sector, i would say this is an easy home run for goldman sachs. they have invested aggressively and they are a miles ahead of the competition. they are much more risk, is in. if you were to say to me, what is the problem with goldman, it was the staff got the lion's share of the benefits. jonathan: there's a couple people still screaming at the tv saying, seven? why sabado? james: low valuation. i think one of the challenges we face as an investing community is, we spent a lot of time trying to judge a company by the progress of its share price. they are doing all the right things. jonathan: talking about doing all the right things, we've had guilty pleas, some sizable fines. the bank stocks didn't really
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care this week. i guess a lot of that was priced in. do you think it was much of a punishment? james: absolutely not. let's be clear, we've had a series of fines. barclays put aside $3.2 billion. in a sense, they got off lightly. i think many people with whom i speak are furious that individuals are not being held accountable for the banking debacle for their part of the global financial crisis, for the absolute loss of money for the loss of thousands of jobs and all the associated bad news. jonathan: why hasn't that happened? james: it is a really interesting challenge. governments spend time waiting fingers at the regulator. the regulator says, we are doing our best. the people are irritated. lloyd's is a bank in the u.k. which has been much under
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caution. we've had statements about it being overly dependent on the public purse. this is a company that i think will be paying a dividend based on today's share price. to me, people want long-term income. jonathan: you have been bullish lloyd's for a while. i want to talk about one of the underlying stories. you and i had some back and forth about this. it was the benefit of the ppi scandal. with the currency rigging scandal, the libor scandal, where was the social benefit? james: there are two separate issues here. there's the issue of banks being fined where the money goes into the exchequer. the ppi was about compensating people who suffered losses. we have not yet seen a large chunk of the loss recognition. take the interest rate swap
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sales. the banks themselves determine what the compensation should be. there is no a movement saying we want to have this independently assessed. i wouldn't be surprised if the number goes up as more conversation comes through. on the fx scandal, we have the fines. when you have the department of justice and the state saying there were actual losses, people are going to be saying, we would like some money back. this is an opportunity to crowbar some money out of the banks again. jonathan: james bevan smells a little trouble coming up. thank you very much for joining us this morning. coming up, greek prime minister alexis tsipras keeps angela merkel and francois hollande up late. talks go nowhere. the clock is ticking on greece. optimism dries up. we will discuss.
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quick check in on the markets, the ftse 100 pushing higher. the biggest mover is vodafone. ♪
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>> negotiations are still ongoing. progress has not been as fast as it should be. [indiscernible] we are in the second half of may. negotiations are still ongoing. it is time to step up the is negotiations and ensure successful completion of the bailout program. it is important that all sides
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including greece stick with their commitments. jonathan: that was the european commission vice president talking about greece. late-night talks between european union leaders resulted in no deal and earlier optimism about a meeting has seemingly faded away. there seems to be pressure on spain. voters will head to the polls in a regional election. i want to get out to our bloomberg team covering these stories. we are joined by athens bureau chief nikos and been in spain. i want to start with nikos in athens. has there been any progress? i guess not? nikos: not really. we have seen this several times. each time negotiations between greek government officials and creditor institutions hit a stumbling block, there's
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escalating of the matter. the answer they get is always the same. go back to the negotiating table and reach an agreement with creditor institutions. it is not a political issue. it is a bureaucratic issue. there are certain rules you have to follow. that is the answer that the great premised are got yesterday after his meeting with the german chancellor and the french president. jonathan: every week, i sit here and use it in athens and we say, the greek government says a deal is close. next week, they say it is close. then we talk about deadlines. these deadlines don't really mean anything at all. anymore deadlines we need to be thinking about? nikos: the greek government and mrs. merkel last weekend, and the french president, they all
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said that we should reach an agreement by the end of may. given the fact that substantial differences remain in areas such as labor market reform, pension system overhaul, sales tax rates, i think this self-imposed deadline sounds really optimistic. jonathan: we're always optimistic. nikos chrysolaras, thank you very much. we will speak to you on monday. let's turn now to spain. ben is in madrid. regional elections are held this weekend. i want to talk about greece very quickly if we can. do you think the spanish people are watching what is happening in greece and thinking twice about going to that protest vote? ben: i think the government is very close on what is going on in greece.
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they are trying to signal to voters, stick with us and protect the recovery. don't take the leap of faith with any of these crazy left-wing ideas like syriza is trying. then, you jeopardize recovery. it is the same message you saw the tories use in the u.k. elections. jonathan: it worked for the tories. in the regional elections coming up this weekend, how important are they? ben: well, these are pretty important elections. it is kind of a dry run before the general election. it also serves to divide up a lot of the local and regional power. spain is a very devolved country. the town halls and regions have a lot of power over health care, education, and there is an awful lot of jobs that can be handed
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out by whoever wins these elections. that matters in terms of securing your base, keeping your supporters happy, paying off the favors that were required to keep the machinery running. if the governing party sees their vote severely reduced compared to the last election, their ability to operate in the traditional way is going to be compromised. jonathan: you brought up the u.k. election and the parallels between the u.k. and spain. another one, goldman sachs forecasting growth for spain this year. do you think that kind of economic growth is gaining traction with the voters? ben: i don't think it is. the government is just banging on that message. they are very clear. as you say, there's an awful lot
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of people who are still not seeing this recovery. that is going to be the $6 million question. so far as i can see, it is very difficult to sell this idea of a new economic golden age even if gdp is expanding at 2% or 3% of year. jonathan: ben sills over in madrid. thanks for joining us this morning. let's bring in kevin daly. kevin, these are your forecasts. 2.8%. a lot of people are bullish on the spanish economy. maybe not the spanish people though. kevin: absolutely. your reporter hit the nail on the head. voters tend to focus more on unemployment. that is when you get those filter through into the feel-good factor.
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i think there is a clear difference between the u.k. and spain in that regard. spanish growth is improving very significantly. unemployment remains very high whereas unemployment in the u.k. is only 5.5%. jonathan: political risk and uncertainty a still big risk for europe. we saw what was happening with greece and maybe next is spain italy, and france. do you think spain they are looking to greece and thinking don't want any of that? it has a real economic impact. kevin: absolutely. one of the reasons is not just the germans are taking a very hard line against greece. the spanish and italian governments don't want to give any ground to greece, because if they do so, the response will be, people in spain and italy would be quite attracted by that option the syriza option
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resulting in compromises from european partners. germany isn't in on its own in this regard. it is greece against the rest of the eu. jonathan: people in europe are looking at the unemployment figures in london, wall street, frankfurt. if only they looked at the pmi. the pmi is getting better. kevin: i have to say, the growth story does seem to be significantly improving. one of the concerns we have at the moment is, will euro area growth tail off this year as it did last year? we think that is unlikely. we think that global growth won't tail off in the way it did last year. we think the weakness in the u.s. is overstated. second, the benefit from weaker oil prices and a weaker euro
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exchange rate, even after the recent rebound in both, euro is down 12% from the average in the first half of last year. oil prices in euro terms down 30% from the average of the first half of last year. that is enough to add together around 2% to gdp. there is quite a big lag before the benefit comes through. it doesn't begin to hit until around now. jonathan: i find that fascinating. on the pmi they have improved over the last month, two months beginning to pull back a little bit. you only expect that to be temporary and you expect a rebound. i speak to a lot of people that say the low oil price, the weaker euro, that is going to drop out at the end of the year. do you think it is going on? kevin: in terms of inflation
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the impact come straight through from oil prices. in terms of the growth impact, there is a longer lag. it takes about a year to feed through. they are very similar to the estimates of the imf. given that oil price in the euro, both began to fall significantly around the middle of 2014. that suggests that the benefit should begin to feed through the pipeline around the middle of this year. jonathan: we've got a weaker oil price. weaker euro. then we that the ecb question. something interesting happened this week. we will talk about the impact of what it was. he was worried about a backup in yields. do we have an ecb that is going to come out and look after the market every time yields back up? kevin: the selloff had been underway for some time in government bond markets before
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they intervened. i think it was significant. they said, we are now concerned by the speed of this. more generally, our ecb view is having crossed the rubicon into the qe program the hurdle for them to deviate from that program is very high. we think they are going to stick with the program they have. they will intervene in these ways when they see developments in markets they are not comfortable with. jonathan: what is -- was it a dangerous game, the first bit of volatility, 4, 5 months into the qe program? kevin: as he put it himself, it wasn't the level that bothered him. it was the speed of the retraction. i think there's a fair amount of bond traders also bothered by the speed of that retraction. we mustn't forget that the
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initial decline in bond yields when qe began was bigger than anybody, including the ecb anticipated. they have a lot of bang for their buck on the qe program, but there will be concern. jonathan: we used to play a game with kevin in each interview. in the federal reserve, stanley fischer said last night that the european monetary union will survive. there's a lot of central-bank speak today. if i gave kevin the choice of either watching draghi at 9:00, carney at 12:00, or janet yellen at 6:00, which one is kevin daly watching? kevin: can't we watch all three? jonathan: so the audience knows who you think is more important. kevin: i would be surprised if carney delivers any big policy announcements today. i think there's more chance from
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draghi or yellen. i could be wrong on that. jonathan: kevin daly sat on the fence. i can't believe it. we will let him get over to goldman sachs and wrap up his weekend. governor carney, next month 12 months just flying by. what happened to that rate hike? next, oil is having its best run ever. crude has a 10th week of gains. more on that after the break. ♪
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jonathan: we are about 46 minutes into the session. here's a picture of the equity markets. the ftse 100 performing higher. losses on mainland europe. down by about 0.2% on the cac 40. the dax headed for of big week. earlier, i said vodafone was the big mover. caroline hyde. manus: currently the biggest -- caroline: currently the biggest gainer. vodafone may consider m&a. and an a or a disposal, so says goldman sachs after they met with the cfo. goldman says, mobile, m&a, it is making significant sense. they expect because of the
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dividends and because of liberty global's preference for capital structures, they think vodafone is going to sell assets rather than buy them. there is ongoing speculation as to whether we will see a deal between vodafone and liberty global, owned by john malone. he said he thinks vodafone would make sense. vodafone still gaining on those m&a movements. not a pretty picture being painted in the luxury market. richemont, you know them for the cartier watches. sadly, you and i don't own many yet. unexpected declines in april sales. down 8%. the estimate was 2.8% growth. 8% decline instead. that is pulling on kering swatch, all the luxury makers. the retailers are trying to delay their purchases of the goods that richemont is making because they expect price cuts
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in the future. this is the likelihood across all the luxury spectrum. it means they pull down prices of dollar related countries and lift them in the eurozone. that is having the effect of delaying department stores buying their goods. clearly, richemont feeling the pain. bank of ireland down by more than 2%. irish banks have agreed to cut variable mortgage interest rates and offer customers the opportunity to switch to a more favorable fixed rate. might be less cash coming in. jonathan: thank you, caroline hyde. let's shift gears a little bit and talk crude. yesterday, the most powerful man in oil spoke to francine lacqua. saudi arabia's oil minister said someday in the not distant future, he or whoever has his job will be a little less important. take a listen.
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>> we recognize that eventually, one of these days, we are not going to need -- i don't know when. 2014, 2015, or thereafter. we have embarked on a program to develop solar energy. why? when we look up, we have the sun every day. jonathan: unless you trade in 2050 crude futures, this doesn't matter. for the next 20 years, that job remains crucial. oil is headed for a 10th weekly gain. the longest rising streak. let's bring in rising -- ryan chilcote for more. a record-breaking week and then some comments about the future. i don't think he's going to leave the job. ryan: he is a really avid sleepwalker, so maybe.
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the number to watch today is 6683. that is what the price of brent would have to get to. we are $.50 shy of that in order to have this 10th week of record gains. you watch the oil market, there are signs that this glut of oil that we've seen in the united states is starting to ease. that is what is driving the price of oil up. we got the inventory numbers on wednesday. crude supplies in the united states falling for a third week straight. that is the biggest consecutive decline since september. what has been going on for most of the time is, crude supplies have been going up. they are 100 million barrels a day over there average. still the most about they've had in 85 years. the number to watch today is the number from baker hughes. we get that at noon central time, 1:00 p.m. eastern, 6:00 p.m. in london, so you can't go
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to the pub. well, you can but you have to have your finger on the trigger. check out the graph. write about january, everybody who decided to order a rig was getting rid of it. we have seen the number of rigs fall. last week, we saw the number decline to 660. you can't really see it there. but we are seeing a little bit of a flattening. that is what makes this week so interesting. obviously, this is a leading indicator. the idea is that if there are less rigs, eventually, there is less oil and that will push the price up. we don't know that. we have seen a little bit of a softening in the curve. that is the big number to watch today. jonathan: tilde production just starting to roll over. ryan chilcote will be at that opec meeting. do not miss that. up next, hong kong stocks meet
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risk. thanks please guilty to penalty charges. all time highs for the s&p 500. we wrap up a pretty strange week. ♪
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jonathan: good morning and welcome back to "on the move." 54 minutes into the session in
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london. ftse 100 up by 0.4%. "the pulse" is coming up at the top of the hour. we are joined by guy johnson. a bit of a strange week in some ways. guy: as opposed to all the other weeks which have been quite normal. you've seen again quite a lot of volatility in the mix. i think what you've seen this week is in some ways a calming down of some story. the bond market story is beginning to show signs of stabilization. you got very excited about the bonds when i dropped in this morning. i think there is evidence that points to the fact that maybe we are getting into a story that is more stable. mario draghi is about to speak and he was like more stability. benoit coeure is very keen, as are many members of the ecb governing council. jonathan: that is coming during your show. ifo business confidence, coming
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as well. guy: we've got a few things to say about greece. jonathan: do you think it has fallen on deaf ears? guy: i think he may have shouted too loudly for too long. but you always need that extra man. you need the debate to make the center more sensible. i think it is a voice that is worth listening to. i listen but i don't here, maybe is the conversation. jonathan: [indiscernible] guy: did you see the picture that tsipras tweeted out? fantastic. we should have a caravan and let them sweat it out. jonathan: the three leaders you have to listen to in europe. maybe we should pay them in greek bank stocks. thank you very much. central bank day today. kuroda spoke earlier. at 9:00 u.k. time, mark draghi -- mario draghi speaks.
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later, it is janet yellen time. don't miss it. have a great weekend. ♪
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guy: friendly and constructive. merkel's words to describe this meeting with tsipras and hollande. the three leaders didn't walk out with a deal for greece. worth tweeting a picture though. the ecb president is about to stay at the forum on central banking in portugal. we are going to bring you all the news as we get it. and we are going to take you back to riga. we speak to the ukrainian finance director, natalie jaresko. that exclusive interview right here on "the pulse."

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