Than what the Union Laborers are requesting. Nissan says they expect to pay the highest average monthly rate with ¥5,000 a month. A little change. We saw the stocks rise in japan. We expect to hear from the governor in less than half an hour. Manus lets talk about the composite. It is a 72 gain in the past 12 months. Is this a reserve requirement drop or more stimulus . Yvonne we are talking about a huge rally that we are seeing. We are talking about these signups seeing the highest since before the financial crisis. The highest level as we mentioned. Airlines and Utility Companies jumped. Investors seemed to be betting on the stimulus in the hope of the economy. We talked about how the pboc is ready to step in and thread the needle of reform, if they need to and they see the economy slow down. Some strategists say this means there is a bottomline that is strong right now. China will step in and make sure the 7 growth target is reached and will not go any lower. Manus thank you for the roundup. Mark israelis have begun voting in a general election that coulsd see netanyahu be defeated at the polls and retain his position as promised or. As Prime Minister. Confused . Does it come down to voting blocs, rather than party . Elliott that is right. Voting began an hour ago in israel for the election of the 19th Prime Minister. They will stay until 10 00 p. M. After that, we will get exit polls which are a good indication of who has won the election and who are likely to be able to form a government, in terms of a coalition. The numbers have changed for netanyahus party, which was leading in the last opinion poll and trailed by four seats. The constant has been more rightwing parties adding up to a greater number than the center and centerleft parties. There seems to be more Coalition Partners for netanyahu. Unlike in many countries, the leading party, the party that wins, does not automatically get tapped by the president to form the next government. He will look at the results, and the official results come out late thursday, and, after one more week after that the resident will decide, looking at the numbers, which party is most likely to form a governing coalition. It may appear to be the right wing. There are a lot who are waiting for the results to come out. He may decide the government of National Unity is the best bet. That could have netanyahu sharing the Prime Ministership with herzog. It would not be unprecedented. There are too many unknowns. If i were a betting man i would not bet on the outcome of the election. Mark we had dramatic developments last night. Elliott a couple of things. Netanyahu trying to shore up the rightwing base, giving a speech from a settlement saying categorically, if i am elected again, there will be no palestinian state on my watch. That will play well to his right wing voters. That will not do much to improve relations with the United States. Another development is the Zionist Union leading in the final opinion polls. It was always can to be the case that herzog would be Prime Minister for the first two years and he would switch with livny who was once part of the same party as netanyahu. She offered to relinquish her Prime Ministership if it meant they were more likely to form a government. The zionist unit has described this as a noble offer. It may come down to the fact that she loathes netanyahu more than she craves power. She does not want to see him serve another term as Prime Minister, mark. Mark obama is neutral on these matters. Is it fair to say that he will not shed tears if netanyahu is ejected from office . Elliott anyone who has watched television for the last two years will know that the relationship between obama and netanyahu is not as good as it could be. It reached a peak when netanyahu went to Congress Without the approval of obama. Congress is controlled by the opposition republicans. He gave a speech warning of the dangers of a bad nuclear deal with iran. The white house refused to meet netanyahu. The white house said they do not meet run ministers in the middle of domestic election campaigns. If there is a victory for the opposition, that would give a chance for u. S. And israel he relations to reset themselves. There are is really relations to rid set themselves. Israeli relations to reset themselves. They want a better partner for the negotiations, in the form of a government led by the Zionist Union. Netanyahu said, no palestinian state. 50 is elected Prime Minister you can forget about peace negotiations. Mark we will speak to you later, elliott. Anna 10 minutes past 6 00. Lets talk about technology. Another day and another skyhigh valuation. It is pintierest. Here with more is caroline hyde. The valuation is growing. What did you call it . I heard it called online scrapbooking. Caroline exactly. If you are decorating your house, it is a mild obsession. Mark we are all looking at it. Manus we went to my pinterest. I have to say it is inspirational. You go into it and it is a volume of images. Caroline it is not just decorating your house. Anything and everything. You can put it on a board and save it. It is 11 billion dollars, doubling the valuation in less than 12 months. It raised money at 5 billion. It is on the scale. They are on the hunt for a little bit more cash. It is new and existing investors for series g, as it is known. Manus the half 15 investors lined up. They have 15 investors lined up. What will they use it for . Caroline how do you make revenue from this company . They have not been building out advertising. They started to. They were beta testing. You can see promoted pins. You will see certain tweets pushed toward you that are sponsored. Similar things will happen with pictures. Bring that international, that is what they have to be doing. Build it out and make it ecommerce. You see a picture, want to buy it there and then, and you cannot. They need to use the my to expand internationally. The numbers are stark. International users have doubled. They are half of all of those who use pinterest. They have offices in london and tokyo. They need to scale that and use the advertisers. You have to see it. Last week snapchat, 200 million they raised. Manus is this a race for yields . Mark how exclusive is this . Is it exclusive if you are above 10 billion . Caroline they were called unicorns, if you were valued at 1 billion. Now, you have uber and snapchat. It is the sixth most valuable privatelyweheld startup. Many are cautious the money is too easy to come by. We will see the unicorns start to fall over. Anna the Business Model lends itself to a shopping source of revenue. Caroline, you do not speak from experience. Thank you very much. We have numbers coming from sony. They reported sales, including the pictures division. This includes the pictures to deivision. The operating profit is ¥182 billion. This is what they say about the forecast. The eggs Japanese Companies tell us about forecasts and that is where analysts focus. The net loss and ¥8 trillion in 2014 revenue. They are tying up loose ends. Manus join us on twitter. European equities are indicating a little bit lower at this stage. Anna and mark barton, what is on the agenda . Mark china. Copper. The red metal jumping earlier this week, following the premier League Pledge to boost expansion. We will bring you an interview with this man, the first interview of the day. We will talk earnings, prices chinese demand, in just over an hour. Manus will be sitting down with him oneonone. Mark the stories on bloomberg this hour. That is according to the financial times. The move delivers a blow to the United States. Western countries should stay out of it charges western countries should stay out of these institutions. Including android devices, apple is seeking to fuel more iphone six and iphone 6 plus phones. More people have switched to android to apple from android. According to the oil minister, after talks resumed with the u. S. Over the nuclear program, the world powers are working towards a deadline to end the decadeslong dispute over the program. Ubers cf is leaving the company, he expanded cfo is leaving the company. He expanded in 53 countries. He is leaving for personal reasons. Anna mario draghi spoke in frankfurt yesterday. Here is what he had to say about the euro area advances. Draghi the euro area has advanced a long way. We began with a single market, currency, and monetary policy. Have a supervisor and resolution of authority. Soon, a capital market. Anna lets look at japan. Centralbank spurs have decided to keep record stimulus unchanged. Central bankers have decided to keep record stimulus unchanged. Lets bring in unicredits head of Global Equity strategy. Thank you for coming and. In. The bank of japan, steady as she goes, despite 0 inflation in the japanese economy. What is interesting is that we have had a gradual downgrade. In the previous one, we had a downgrade of consumption outlook and we have downgraded the consumption outlook the inflation outlook. If the effects continue to be negative, as they have been this provides a good excuse for the bank of japan to say the slow down in prices and Price Inflation is temporary, having said that temporary. Having said that, domestic demand is rare in japan. Anna can it get a boost . It might. A lot of the world and outside of the u. S. Is going to get a boost in real demand with a lag from lower oil prices. What is interesting is, the decline we have seen is abrupt and concentrated in the Fourth Quarter of 2014. A lot is in the pipeline. Manus we have an article on the yen and the bank of japan. The bay japan is hitting a target of 2 . The bank of japan is hitting a target of 2 . The last time they saw that was in 1998. Is it achievable . I think it is. To be honest, whether we go to 135 or 140, one can debate that. Japan is facing ongoing structural problems. It is highlighted by the fact that real gdp and consumption, as well as inflation expectations, are at the same level that they were prior to the bank of japan initiating the program. That speaks to qe failing to do anything. In general, it irrespective in general, irrespective of in gauging or not, in gauging or not, they need to work on the yen. Engangging or not, they need to work on the yen. Mark do they need to take into account the strong dollar in their deliberations . As far as the word patience is concerned, we can expect them to drop that. Not just us. Pretty much everyone. A lot of that, pretty much all of that, is in the price of the dollar. We would need to see a hawkish build somewhere else for the dollar to get a meaningful boost. As far as the fed being impacted in the decision with the language or the timing i would say a couple of things. First of all, it would be unusual to use the dollar on the statement. This is more likely to be reflected in the minutes that will be published later. The second thing i will say is, yes, the appreciation has been steep, by historical standards. The level of the dollar is not completely unprecedented. The other thing we need to take into account is the u. S. Economy not being like other economies. That means the filtering through the export channel into the real economy is quite lower, compared to other economies. At the end of the day, payrolls if you look at the trend a basis, is raising by 300,000. That is the highest since january 2000. The output gap is diminishing. The fed analysts will wake up tomorrow and see the increase. The fed will see through that appreciation. Anna some people are drawing parallels with a time of appreciation in the dollar the strong and not having seen this for decades. We have not seen the strength of the dollar in this particular period since this time. Our Historical Perspective useful . I think they are. When you draw comparisons, as i said, the pace of appreciation has been unprecedented. It is steep. Having said that, we have not really seen a big effect on the u. S. Economy. At the same time, what was mentioned before, oil prices will boost real demand and, if there was a negative impact to the export channel, i suspect it will be largely manus one of the things that caught my eye was that you were more ambitious for sterling the rest of the market. Is that smart timing or hopeful thinking . What we published recently we said the next 1. 5 months, in the runup to the election, it will be increasing volatility and a downside pressure. The fundamentals in the u. K. Are strong. The gap between the timing of the fed and the rate hike is the second thing. Mark porsche takes on elon musk. Can the luxury carmaker overtake . Manus youre watching countdown. The dollar desperate times call for desperate measures. Yesterday when the manufacturing data was out, a little bit disappointing, they sold the dollar, doing anything to hold on to cheaper rates. Lowest since 2009. There was a little bit of a shake in the dollar. Youre going to see this level of the dollar. Dollar yen we just had unicredit in here saying it is just a matter of debate. Q. E. Has failed in japan. Thus far in terms of benchmarking the numbers from where they started to where they are. It is probably going to take more. That is the view from the markets. Would have made about 20 . The question is yen still your funding currency of choice . Dollar yen needs to get to 1. 40 for them to achieve a 2 inflation target. When it comes to minutes and the meeting of minds, the aussies told us what they thought on march 3. The current set of growth and inflation forecast suggests a need for further easing. However, i love what r. B. C. Said. The aussie dollar dropped ever so slightly. Blackrock said get ready for an 8 drop. R. B. S. Said it is firmly intact. They want to keep the maximum pressure on the currency at the moment but there is a little bit of patience. A little bit of patience and tolerance goes an awfully long way. Anna . Anna thank you. It may be the smallest division at Goldman Sachs group but it is performing well. They are expecting to see a 10 growth in the foreseeable future. The Strong Performance comes after three years of mismanagement and returns trailing behind. Chinese billionaire is considering a commercial property growth at curbman and wakefield. Cushman and wakefield. The owners are seeking about 2 billion. Blackstone group is buying major stakes in Hedge Fund Firms looking to cash out. Most recently they bought a stake in an Asset Management company. They have raised more than 3 billion to buy stakes of 15 to 25 in established hedge funds. Mark lets bring in chris for the conversation. Chris what is behind this move from porsche . Guy well the luxury car has taken notice as a desirable brand and aspirational brand and they are all trying fight against that. What porsche is doing by rolling out, planning to roll out the Pure Electric car. It is targeting teslas emergence. It is also a play against regulation. In certain markets like china and california you have to have a Pure Electric car in order to keep playing the game there. They need to have electrics out there available to the consumers. It is also to counter teslas rise. Mark is this move unique to porsche, chris . Guest no, it is not. Por that belongs to volkswagen. Audi plans to roll out an electric s. U. V. Coming out by 2018. Porsche by 2020. B. M. W. Is already if the market. Tesla is starting to ramp up the factory. Production is going to start there. By 2020 they want to get to 25,000 cars. This is a move by a big player in that space where tesla plays in the luxury segment to counter teslas rise. It is a pretty significant move. Volkswagen is going into electrics. Mark do we know anymore details about that car, what it is going to look like, how much it is going to cost . Guest we dont have details on what kind of electric car it is going to be. They said they want to roll out their seventh model and have given us hints about what direction it could take. It is going to be a direct attack at tesla. Like the audi will attack the model x. Porsche said they want to go with a sports car at some point above the porsche turbo. That will be what they call a ferrari fighter. It could be an electric sports car like that. We still dont know the details and porsche is keeping us in suspense. Mark thanks a lot. Lets shift the to douse the u. K. Economy. George osborne is expected to unveil tax breaks for britains oil industry when he announced the governments budget on wednesday. They have been hit hard by weak oil prices. Bloomberg spoke to three people at the heart of the industry to talk about the risks and the opportunities facing the north sea. Completely starved of investment. I think that unless something is done this could be this could be a could create demise of the north sea i havent knelt concerned and anxious about it since 1986. 1986 is the worst ive experienced in 30 years in the industry. Production has come to fruition. I think see a lot closing down and many leaving the industry. Ive been through five of these. What will happen is the gelt busier than ever. Get busier than ever. They have got flabby. They have got fat. It has been a bubble. If the bubble bursts, do we end up looking like here. It is another persons opportunity. A private equity firm, the owner said to me recently you to love the downside. Actually you can create a lot of value. Separates the men from the boys. If we want to get through this difficult period healthier for the future. Anna you can join us in conversation for the future. We head to the budget tomorrow in the u. K. That is going to be 123 of the topics were discussing. What is the action the chancellor might take to boost the Energy Sector in the northeast. You can find me at annaedwards news. Manus cranny at manuscranny. Mark top stories on bloomberg at this hour. Australia says another Interest Rate cut could be needed. They have below average growth if the economy. They last cut rates in february. Angela merkel reiterated agreement for a ceasefire in eastern ukraine. Speaking alongside poroshenko, said sanctions against russia are still on the table. What happens if it will not be implemented, we will not talk about possible actions we can take. If violations are happening, we will decide about more sanctions against russia. But this is not our main point. Our main goal is to see how we can find a political solution that provides the implementation of the entire minsk agreement. Mark iran could raise oil exports. Talks resume with the u. S. Over the Nations Nuclear program. They are working for an end of march deadline to end the decadelong dispute over the program. Youre looking at live pictures of the bank of japan governor. He is speaking now and says that policy wont be affected by the temporary c. P. I. Drop. The b. O. J. Kept its stimulus unchanged. They warned that inflation will will be brought to a halt in the third biggest economy. Inflation is 1 10 of the bank of japans core inflation target. Kuroda is choosing to look through that. Kuroda as of now theys the Bodily Injury cant rule b. O. J. Cant rule out a drop. A downgrade of expectations from the last meeting. Now he is admitting that the key inflation gauge could fall below zero. What it meevens for policy is what is most important here. Will it ultimately mean the the b. O. J. Has to implement more monetary easing on top of the unprecedented stimulus that is already announced. Kuroda speaking after the b. O. J. Kept policy unchanged. Well keep dipping in and out of that news conference. Anna when was fivered win a fourth nerm office in israel but a late surge in the opinion polls made its leader a real contender for Prime Minister. Who is he . Elliott gotkine reports. Elliott until recently his name may be registered outside israel. Inside the jewish state the saudi name carries the same weight as the kennedys or bushes in america. His father was u. N. Ambassador and then president. His uncle was the foreign minister and diplomat. His credentials are not too happen isy either. Educated at cornell and n. Y. U. , he served in the Army Intelligence unit where his intellect rather than his slight physique would have come in handy. He worked at a law firm founded by his father before becoming a Party Fundraiser in 1999. His only political positions of note have been housing tourism, social welfare. Now he has a shot at the top job. The last opinion polls suggest his Zionist Union may win the largest share of the vote. He would work on lowering living costs. He promised to let his partner take charge after two years. Anna Elliott Gotkine joins us now from tel aviv. Good morning. What is the latest then . Elliott i should say last night, he offered to relinquish that part of the deal where she would become Prime Minister for two years if they get to form a government if that was standing in the way of their forming a governing coalition. If netanyahu had his way iran would have been one of the central focuses of this election. He discussed the importance of iran in this vote. Im joined by the mayor. Great to have you with us. Does iran matter . Guest according to the polls that were carried out in israel, only 10 of israelis see iran as a top election issue. Nobody in israel wants the Iranian Regime to have nuclear weapons. That is one of the few things that there is a consensus on. In terms of top election issues, only 10 . Not more. Elliott three weeks before this election against barack obama did that help . Guest it did not show a surge of popularity. It didnt seem to make his life any easier. It actually has given ammunition to the opposition and the voter has not i think been moved by that issue. I think when it comes to typical probably were going to vote anyway without that in terms of turning other voters into supporters iran is not the top issue. I dont think it is successful in attracting more support. Elliott could have been here, he was over there instead. Interesting enough as you say, the leader of the Zionist Union, netanyahu said he would be weaker than iran. They dont necessarily agree do they . Guest it is not what you say. It is how you say it. He doesnt want a nuclear iran. He also is not for the current deal although his way is different. He is not going to taken to best friend of the state of israel, the United States publicly. I think if he doesnt like to deal, he is not going to stop it. He is going to address the issues to have United States behind closed doors and try reach some kind of understanding. If he cant stop this deal israel will live with it but with a better relationship with the United States, especially safe in the knowledge that if iran doesnt respect the deal that United States will at the minimum impose tough sanctions again. Elliott although he would still disagree with the United States potentially on a nuclear deal there would be way to detoxify the relationship. A follower of u. S. Politics said champagne corks would be popping in the white house if he gets into power and netanyahu doesnt. Guest one of the first people he would call would be the president of the United States. I think it would be safe to assume one of the first countries he would visit would be the United States. Absolutely. I think many people are very concerned about the direction which israel United States relations are going. This is one of the first issues he would address. Elliott according to the polls they could be the third Biggest Party in parliament. You would you really see an Israeli Government including arab parties . Guest it is possible. We could see that once they join the government they cant fracture and some could split off. Elliott great to have you with us today. Ill be here throughout the day giving you the latest on those israeli elections. Polls close at 10 00 p. M. Local time. 8 00 p. M. U. K. Time. Well get the first polls immediately after that and only then will we get an indication of who may be able to form the next Israeli Government. Back to you. Anna just over an hour to go before equity markets start trading. Lets that v a look at what we found on the bloomberg digital universe. Mark how do you know you are really made it . Ill let you know. There is one young man. Rory mcilroy from northern ireland. Number one in the world rankings. He now says goodbye tiger. It is my time. He of course gets his own video game with electronic arts. He is 25 years of age. He has 2. 3 million twitter followers. They said he is the coolness factor. He is highly wanted because of his charismatic and he is good looking and golf needs an icon because when tiger woods is not on the screen playing golf, the numbers dip. There you go. Should just say that golf games as it were and about 100 million, fifa, the game is expected to earn 500 million. And the nfl. Golf still has a long way to go. Mark there is a lovely story. Broadcast billions. Dont by premier League European success. If you have been watching the Champions League two of our four teams have been knocked out. Arsenal going into tonight eas game down 31 against manchester. Need to overcome a 21 deficit against barcelona. Chelsea are out as are liverpool. It is important because it matters for money and it is europes most lucrative and prestigious competition. It could be the second time in three seasons that were not in the last english teams. If maybe next year we repeat that feat if possible, we will lose one of the championship maces. Rather than the top four going into the Champions League, only the top three. One brighton player said money doesnt buy success. Premier League Players are surrounded by luxury. Maybe they think they have arrived and lose their appetite for winning. There is so much money in football here in the u. K. After the recent bskyb package which paid the premier league 4. 5 billion pounds. It is shown in the 12 territories worldwide. An audience of 4. 7 million. It is big bucks. Big impact on broadcast and sponsorship. Anna i feel sorry for these players. It costs a lot. Lets talk about oil. There was a link there. Saudi arabia wooing five u. S. Shale workers to join our team. The staterun oil company in saudi arabia is now hiring out of work u. S. Shale drillers. Many in the u. S. Of course have been blaming the saudis for the collapse in the oil price. Im sure many the middle east blame the u. S. There is a lot of blame to go around. The saudis trying to keep up their market share in oil market by not cutting back on production in conjunction with opec. It seems they are launching a great effort to increase the amount of shale drilling they are doing. To date they have only drilled eight shale wells. They are hiring all of those guys that have been put out of work in the u. S. Great quote from michael weber. Saudis shale recruiting efforts are akin to a chinese factory running a u. S. Factory out of business and then trying hire the unemployed workers to improve situations in china. There are various conditions around the working environment. Mark i have a conspiracy theory. Saudi arabia trying to cut production so they can have the best shale drillers. Manus the Federal Reserve has produced a couple of charts about oil production. Even though rig counts are going down, it obviously hasnt hit production yet. This is the official Federal Reserve monitoring the oil markets. All of this discussion about where we are with the middle east producers continuing to pump and pump and pump. Mark rigs have been cut to their lowest level since twen. Anna it is 6 56 in london. Were going to bring you some live pictures from dubai where Francine Lacqua is hosting a panel in the worlds tallest building. The panelist includes bloomberg l. Founder Mike Bloomberg just to name a couple of the participants. One of the hot topics being discussed is the price of oil and what that does to economies in the middle east and indeed the future of cities. Well take a short break here. Mark look at twitter. This is where youll find us. At manus cranny, at anna edwards news and mark barton tv. See you in a minute. Anna chinese stocks returned to precrisis highs on hopes for the revival in the economy. We bring you the latest on the Global Equity rally. Mark inflations are set to stall. We will tell you what it means for the third biggest economy. Manus israeli election too close to call. The israeli election is too close to call. Benjamin netanyahus power is threatened. Mark welcome to count down. I am mark barton. Coming up today, john tells bloomberg the weaker euro is good for luxury outlook. Because of the euro which is week, we have a booming europe. We have a lot of people from the u. S. And china who find it convenient to shop in europe. We see a Good Development in china. There is a price differential between the u. S. And china that is substantial. It is growing well in japan, which is a stable economy. It is not a booming economy. As it is right now, there are no countries or territories where we do not manage to have positive growth. Mark getting breaking news. European car sales growth accelerating. Sign of strengthening expansion signs of strengthening expansions and dealer discounts encouraging purchases. Registrations climbing 7 from one year earlier to more than 958,000 the calls vehicles. The deliveries rose to 1. 99 million cars, following januarys gain. All five of the auto markets grew in february. The strongest gain was in spain. A Government Program encouraged trading in vehicles for scrap. It propelled a surge. Sales jumped in italy and the u. K. In germany, we saw a growth of 6 . Folks like in v volkwagen expanded. Registrations are up. Bmw is higher. Daimler also registering gains. Fiat gains 11 . Quite a month. The resurgence of the european car market continues. Any resurgence at st. Marys sainsburys . Anna the update came through for the retailer. The Third Largest grocer. The numbers you are looking at are the total sales excluding fuel down 0. 3 . Not as bad as the drop of 0. 4 that the and with had anticipated. If you are looking at the numbers and comparing apples to apples, down 1. 9 . Not as bad as the estimates. Things are not as bad as could have been expected. The company, mark cooper, the ceo gave us not exactly an upbeat outlook. He said he expects the market to remain challenging. Food inflation is likely for the rest of the calendar year and competitor pressures on price will continue. He says he believes the value of quality will allow them to outperform supermarket peers. We are seeing competition coming from discounters. This is the fifth quarter of declines that sins varies sainsburys has had. Things have turned around. They have been investing 150 pounds per year in price. We will get an update on all of this when we speak to the management later on in this hour. We will talk to the finance director here on countdown in just a few minutes. Mark getting breaking news. A coppermine controlled by che iles family. Analysts are estimating it is below estimates. Below 3. 33 billion. The company sees copper price volatility continuing. It is more likely the Copper Market will be in balance. We are awaiting the forecast for copper production for 2015. No doubt, manus will ask the chief executive all about that. He is joined by him now. Manus thank you. I am joined by the ceo diego hernandez. Great to have you with us. Looking at the numbers, the big subject is the biggest producing mine. You have had blockades and those were taken away. You suffered production hits. You said it is still uncertain what it may produce this year. Can you give us more guidance on that . Diego it is the most important mine we have. It accounts for six to percent of our earnings and production. We have two different issues. The blockades are an area where we are having for six years. People are worried about work. We consume 5 of the oil. We are big players there. Our commitment with the community is that for any new expansion we will use desalinated water. Manus that kerrys cost and changes the way you mine copper. Carries cost and changes the way you mine copper. What does that mean for Capital Expenditure . Diego we are reducing cap ex. We have another program that has started to commission. It is lower than last year. Just on the mines north in chile we only use seawater. In chile, there is a water issue from santiago in the north, in terms of new projects. Any new big project will need to use sea water. Manus there will be bigger costs if you have to use desalination. What do you think the cost will be . Diego we have moved to seawater and it is included in our costs. In the longterm, you are asking for a cash cost increase of 5 at 7 5 to 7 . Power costs are higher than other copper producing countries. The country needs to tackle the issue and that is what we are doing now. Manus any further update on the copper production . Any further quantum on that . Diego we are working in some plants to reduce that. It is too early to give any number. Manus you are a man who has worked for bhp. Your knowledge is extensive. Where are we in the great debate on Capital Expenditure with the Mining Industry . Have we hit the bottom for what miners need to rebel for costs . To rip out for costs . Diego it takes time to come down. The cost of projects is more normal. It went up tremendously because of high demand for equipment. I would say the cost of products is normalizing. In terms of operating costs, we are all reviewing our costs. I would say we have made a lot of progress on that. There is still some room to go. Manus a lot of the headlines are global stockpiles of. Up. Shanghai has doubled. That gives support to copper prices. You have been through peaks and troughs before. Where are we . Stockpiles will hit the buffers soon. There is a limit. Diego the expectation for this year was to end the year with a surplus of 400,000 tons. Analysts corrected that to 200,000. We have seen some announcement of lower production with some companies. By the end of this year, the surplus will be nil or very small. Manus does that squeeze copper prices quest mark you are the ceo. Copper prices . You are the ceo. Diego in the shortterm. From then on, copper supply will be tight. I am optimistic about the medium and longterm. Manus li said they are ready to act in china. Is that music to your ears . Diego well, i think the mining and the copper business will not change too much. I think that the newcomers if they want to be in this business , they have to pay a premium that is not recommended to be paid right now. I would say that, among all commodities, i believe that copper is in a much better position. Manus thank you so much for joining us this morning. Great to have a conversation with you, diego hernandez. Thank you so much. Anna you mentioned china. The worldbeating it rally continued. Worldbeating rally continued. Lets head over to yvonne for more. Is this about Global Stock Markets or is it chinaspecific . It could be both. It seems like investors are betting on monetary stimulus reviving the economy. We just spoke about how the pboc was ready to step in and thread the needle of reform, if you economy slows down and it hits jobs and wages. Investors are optimistic about that. Up 3502 right now. We have not seen levels like that since 2008. The best rally lives on. We saw that in airlines and Utility Companies. Mainland investors opened 6 62,000 accounts. The most since december. It seems like a bottom line has been drawn knowing china will step in, if they do not reach the 7 growth target. They will not let it go any further down than that. Anna of course a lot of news coming out of the bank of japan. The central bank has kept the stimulus unchanged and had to a knowledge that inflation could be near zero. Had to a knowledge acknow ledge that inflation could be near zero. Cpi could drop below zero. That is a change in language. They will be watching the trend in prices. No changes, so far. Abe spoke to parliament and said that exiting deflation is not easy and japan is not in a situation right now of having ended the deflation. If you talk about the main inflation gauge, at 0. 2 that is 1 10 of the inflation target of 2 . Price hikes will be in focus, especially with the Wage Negotiations going on right now. The governor has said he wants to see if japan and Union Members can raise wages there. We heard from toyota talking about raising the average monthly wage base. Anna thank you for joining us from hong kong. Mark join the conversation on twitter. Happy st. Patricks day. That is a trending subjects today. Me and anna bounced into work. There was a reason. Anna he is always bouncing. Manus absolutely. At 3 00 in the morning, just bouncing off of the walls. We discussed the latest Earnings Report with john rogers next on countdown. Anna welcome back. The Supermarket Price war wages on. Sainsburys reported betterthanexpected fourthquarter earnings this morning. The business is combating inflation and the increasing popularity of discounting chains. Lets talk to john rogers. Good to see you this morning. I want to talk to you about how the business is performing. You are investing in pricing. What you have to invest more . We will see will you have to invest more . We will see. We are investing 150 million in pricing. Customers are really benefiting from that investment. We are starting to see the positive impact of the investment in our performance. We are seeing volume increases and like to like transactions increasing. We are seeing overall volume in the business increasing as a constant of the price investment. There will be more price investment coming in the sector over the next 12 months. Anna volumes may be going up. Sales, not so. How long will the numbers remain negative . We will see price deflation for the rest of the calendar year. The next nine months or so. That will work its way through the system and, i do not see like for like becoming positive for the next 912 months. That is consistent with the strategy we outlined a few months ago. We were clear about the direction of the market. It will recover. It will take some time. Over the next 12 months or so we expect the market to remain challenging. Anna one of your rivals and wrote down the value of the property portfolio. How comfortable are you with the valuations of your property . Very comfortable. We took a road down to our estate a few months back. Less than others have in the sector. We are comfortable with having taken the right down in the right way within our books. Anna we have talked about the weaker oil price and the upturn in the u economy being felt at your sales. In the u. K. Economy being felt at your sales. Are you concerned that the recovery will bypass the grocery sector . John it remains to be seen if the recovery impact positively on the Retail Sector. We have seen this before. It normally takes a while for that to impact the food Retail Sector because what happens when recession starts to bite is , people switch from eating out to shopping in food markets. You can generally see a bit of an upturn going into recession. The same dynamic was reversed going out of a recession. People are now eating out more and that takes income away from the food Retail Sector. There is a bit of a lag effect. We could see disposable income rising. It has been over the last few months or so. The time it takes to work its way to the food Retail Sector hopefully, that will see as positive. Anna can i ask you about the wage build . We may see minimum wages put up in the u. K. Are you under political pressure to pay a living wage to guarantee the living wage . And to guarantee the living wage . John the entrylevel is above the minimum wage. A positive thing. In addition, we also pay bonuses on top of that and we pay a bonus for hard work they have done. We are positive of that our overall wage position. Anna im sure you have been reading the coverage about Business Rates ahead in into the budget. Any thoughts about what is going to come through for the chancellor tomorrow question mark perhaps a lot of the policy will focus on smaller retailers. For the chancellor tomorrow . Perhaps a lot of the policy will focus on smaller retailers. John the government announced a major Strategic Review of the system and we actively welcome that as retailers. The harsh reality is that the Retail Sector accounts for 5 of u. K. Gdp and pays 25 of Business Rates overall. We think it is overlypunitive on the Retail Sector. We welcome the review. It will take some time. We are not expecting announcements in the budget tomorrow. We welcome any relief the changes to Business Rates. Anna thank you very much for joining us. Good to see you this morning. John rogers, the ceo of sainsburys. Manus the israelis have begun voting in the general election. Lets getting over lets get over to elite gotten. Elliott gotkine. Explain this to me, will you . Elliott the prospect of a coalition in the u. K. Seems simplistic, by comparison. The last opinion polls gave a lead of four seats to the Zionist Union. We are talking about 26 out of 120. You need 61 to form a governing coalition. There seems to be more natural right wing allies for netanyahu, who we saw voting at the opening of the polls at 7 00 local time. He seems to have more natural right wing allies with whto enable him to form a government. Netanyahu was trailing in the final opinion polls. Even if the Zionist Union wins they may not have enough Coalition Partners or natural Coalition Partners in order to form a government. Interestingly, unlike in some countries, like greece where the Biggest Party gets the first chance to form a government. In israel, the president enin a week, will tap the party who he thinks is most likely to lead a governing coalition, even if it is not the biggest one. They have been voting since 7 00. The polls close at 10 00. We will get the exit polls. We will not get final results until thursday. We will have a pretty good idea of who won the election and who is likely to form a governing coalition. Netanyahu has lost the election before it became Prime Minister. He has ruled out forming a government of National Unity with the Zionist Union. That possibility was precluded by netanyahu already. If i was a betting man, i would not be betting on who would win the election and not on the eventual outcome. Manus we will be back to you throughout the morning. Anna 7 26 in london. You can join the conversation on twitter. Mark coming up, european car sales accelerated in february. Who was the big winner . We will breakdown the trends . Manus you are watching countdown. Lets check on how the dollar is trading. The report tomorrow evening. Here you go. Desperate calls call for desperate majors. You saw the dollar deal by 0. 5 . Could it be that the said keeps the word patient in their statement . One guest said it would be removed. The Bloomberg Economic surprise is that is the lowest since 2009. It is dipped yesterday. We are seeing london being able to pick up. As i say, it will come down to the change in a dog mark couldve the fed refer to a strong dollar again a change in the dollar could those say to refer to a strong dollar again . What we have is the bank of japan keeping stimulus from changing. At first, they said to 0 in the near term. Kuroda saying it is possible it could go negative. A lovely story on the bloomberg terminal saying the bank of japan means dollar yen to go to 140 back to 1998 levels to get any chance at all of getting to the 2 inflation target. The aussies came out with their meetings, the rba reserve up by 0. 25 . They acknowledge on march third and a discussion the Inflation Numbers suggest there is a taste for more easing. They will remain under pressure is what the rba is saying. They are patient for the moment. A little bit of reprieve in the aussie dollar. Up 0. 25 . Anna . Anna some live pictures from us bloombergs city forum in dubai. Francine lacqua is over there and she is hosting a panel. One of the participants is Michael Bloomberg. In the tallest building in the world discussing future of cities. Michael Bloomberg America attracted people and what i think is right in the world. Those kinds of ends are easy. The hard things are moving money from the Police Department to the fire department. Money from education to sanitation. Thats the real world. Those decisions, banning smoking or letting people build a mosque if they want to that are controversial but the easy was to make. Anna francine what is the difficult part . Michael bloomberg people want good companies. They look to the chief executive and even she or he has to give the image of anna that was Michael Bloomberg speaking in dubai. The top stories is our. It may be the Largest Division at Goldman Sachs but it is performing well. The banking unit is expecting to see 10 growth. It was shifted to Asset Management and more landing to more individuals. The Strong Performance after three years of mismanagement and returns to trading behind. For you a chinese billionaire spoke is considering a bid for kurtzman and wakefield according to people with knowledge of the matter. The firm is among several companies who have expressed interest in cushaman. Blackstone group is buying major stakes in Hedge Fund Firms. Most recently, the group bought a stake in an asset manager solis. It has raised more than 3 billion in is established hedge funds. Mark european stock to auto sales accelerating in february. A big for vw and bmw. The growth of the sectors continues. Our next guest thinks they are trading at a discount. Lets bring in tim. Hi, temp. Had an astonishing year. Vw, daimler. They have had an astonishing year. That is incredible. A twist on it the other day. 18 billion euros, it is phenomenal. Can they continue . Tim we have to look at evaluations and it comes down to the fact that if you look at the big auto names you mentioned some, they are trading in line with historical values and if you look at the sector as a whole, 11 times earnings. 16 times earnings. Very good value to us. What is more important is not just they have very strong tailwinds coming from europe but also been part of a larger change. You are seeing companies transform their businesses. Businesses which can have longterm structural and much better margins and much better operational leverage. Anna the business is doing that you said are in have done the hard work during the downturn. Tim crockford you are right. Not just the yen. Valet is a good example. We on the stock and how for a while. If you look at back in 2010 they sold overnight percent of capacity to break even. Now, they have managed to lower quite a bit to the 70s. It is making products that help the oems reduce the co2 emissions. When we bought it it was six times and now it is trading at close to 16 times. It is a co2 Emission Reduction company and we think it is good value. Manus the burning question, the s p, of the most in five weeks. China, the highest since 2008. Added these markets are cracking on just and these markets are cracking on just cheap fuel. Do you utterly believe . Your language is is about value and real production. Do you buy into this rally . Tim crockford in terms of where china is, we look at european markets. You have to separate these regions. In terms of china, it has been a case of bad news is good news. And i think you can say the same with the u. S. , the flip side. The opposite happening. When it comes to apologies to trading to turn it to u. S. Equities. Manus they are up at a high. Absolutely, concentrated, should i pare back in the u. S. Or in china and put it all on the big block . Tim crockford we are excited about european equities and not just because that is what we invest in. I think were genuinely excited about it. I alluded to earlier, there are real structural changes. The u. S. Being the Macro Economy has been the doghouse for a long time. It is forced cant companies to change for the better. You have seen these Companies Increase diversification in terms of production to lowercost regions. You have seen dont go to less profitable. As a result, even if you look at was compared to the u. S. And europe looks more favorable, particularly on the at adjusted terms. When you look at europe as much cheaper than the u. S. You can have much stronger earnings because of the improvement we have seen at the company level. We think the rally in europe can go a much stronger way. Mark driven by health care and technology. Tim crockford those are 2 sectors we like. You find exciting ideas. There are things that are driving old. There are themes that are driving both. We think that biological drugs from an economical point of you have a longer shelf life than chemical drugs. Manus the roches of the world. Tim crockford roche has one of the Largest Biotech Companies in the world. The valuation compared to some the biotech companies, really attractive. Anna on technology Tim Crockford on technology as well. Europe is smaller than the u. S. Look at the valuation in the u. S. Manus a bit of up. Tim crockford there you go. Exactly. You look at some other european attack shares tech shares. They are trading at evaluation in the double digits for in no way like the double and triples we see in the u. S. They have proven earnings that can grow at doubledigit numbers. Mark Tim Crockford thank you for joining us. Manus join all of us at twitter. You can pick up some of the snippets from annas interview. And my interview. And mark has been mobilizing us. Mark an auto part for you. Auto parts sector in europe has added 107 billion euros to their valuation. Anna wow. Up next is the fed watching these 2 charts. Mark barton time for bargain chart. The Federal Reserve has a twoday deliberations. Two charts worth considering. When policy will be normalized in the United States. The top one is the outlook for inflation. It shows the difference between the yield on 10 year knowles in the same maturity on treasury inflation protected securities. It is a gauge of trade in expectations for Consumer Prices over the life of the debt. Otherwise known as the rate. It is resting at 1. 65 , dropping from the pink circle of 1. 88 , as crude oil prices tumble. The average has been 1. 6 . That has been a average over the last decade. Slowing price may be a rate a factor in rates. They are awared. Teh fed they are aware. The gauge is at. 82 . It has not been above 2 since 2012. I want to show you the bloomberg surprise index for the it measures weather data is beating or missing forecast. Right now, minus. 69 . The lowest since 2009. 2009 is when the nation was in the deepest recession since the great depression. The latest days a to disappoint was mondays gauge on manufacturing. The chart, of course is a missed expectation which may be overinflated. A declining trend. Look at the green circle which showed a positive. Since then, the trend has been a downward trend. It has not been above zero which shows the data is on average beating estimates since he essentially the beginning of the year, the trend is a downward one which may give the fed reason to pause to thought. Two very important charts. The bloomberg echo u. S. Surprised. Is the fed watching . Manus another Interest Rate cut could be needed. The bank noted low average economy. The rba last cut rates Angela Merkel reiterates the need to get an agreement for a ceasefire in eastern ukraine. Speaking along Petro Poroshenko further sanctions against russia are on the table. Angela merkel what happens if it will not be implemented . Right now, we would not talk about possible actions we will take your if five relations are happening, we will decide about more sanctions against russia. Our main goal is how we can find a political solution that finds the implementation of the minsk agreement. Manus iran could raise oil output by one Million Barrels per day. Iran is working toward an end of march deadline to end the decadelong dispute over the nuclear program. Anna the biggest drone market remains military but civil drones are catching up fast. Caroline koning reports. Caroline connan reports. Caroline a picture of agriculture in france. This drone is flying over 15 hecters. The Unmanned Aircraft takes hundreds of pictures. It will be analyzed. This is the sensor with 4 lenses and the data is on the memory card before it is transferred. Caroline a French Company has the farmer to save money. With just 2 drone flights a year. The farmer equipped with a gps can go exactly where needed. They like to see. Advise them and see the people behind it. Caroline france is one of the most advanced countries with agricultural drones. They were one of the first to regulate. For this farmer who took over his parents farm, the drone will save a lot of time. Today, it is a revolution for agriculture. Our parents were not the drone generation. To increase profitability. Caroline commission 20,000 flights this year. Drone generation is looking up. Mark live pictures of israeli voters headed to the polls. The election is today. More on that after the break. Manus joining us to pick the earnings of part is alan. Look at this, down 1. 9 . Still in negative territory. When will you turn positive . Reporter he said not at this year the prices are falling. They talked about 2. 5 deflation. Worse than the cpl figure which is around 2 . And realistically, the weakness of the euro may exacerbate that. Anna is that the structural witness in this environment . Do they sell more fresh food . Charles people say they over index they are above average in fresh food. But we will see what happens over the year. We will have to see if the forecast if prices will fall. Anna is it all doom and gloom . Charles probably not. Their property was unlike morrisons they do not expect to rate it down again. Cap pockets of growth. And i think, looking at overall volume growth. And they have pockets of growth. And that is a turnaround. Maybe seeing customers come back. Anna on a this is rate, sorry. Mark is the work behind them . Looking at the shares since september time in december time. Relatively new ceos. Have we seen the worst . Charles i think this is the sort of question. The consensus is that profits will fall again this year. Same with the tesco and they have taken a huge hit and they are expecting maybe no profits in the second half in the u. K. Again, it depends on what happens over the next few months and whether we see another step down and profitability. Anna Charles Allen joining us with the latest on sainsbury. On the move is up next. Manus happy st. Patricks day, everyone jonathan good morning and welcome to on the move. I am jonathan ferro. Minutes away from the start on european trading. More records broken. The dax north of 12,004 12,000 points for the first time ever. Japans low inflation. The bank of japans kuroda could not reluctant possibility that inflation can go below 0 . The shanghai composite close at the highest level since 2008. Extending the world of beating. It surged over 70 in the past 12 months. Another monster valuation. Internet startup interest, 11 billion, double the companys valuation 10 months ago. The three things we will be watching. Euro stocks future data flat. Dax is up the nine point sprint lets get over to manus cranny. A very special day for the irish manus cranny. Manus a hint of green on the equity markets. Excuse the pun. Set the tone in the dax. Pretty big expectation number. Really saying gets ready to lurch into the european markets they have structurally changed th