Transcripts For BLOOMBERG Countdown 20150326

Manus 1 million in breathing room from that ecb but the verdict is still out as to whether greece and be trusted to come up with adequate Economic Reforms before monday. Caroline i am caroline hyde. Manus i am manus cranny. Caroline coming up one heartthrob leaves the richest boy band in Music History. He says he is ditching one direction but will the four others carryon to make more megahits . Stay tuned, that story is coming up. Straight to manus for a quick check on the market. Manus this story sounds very reminiscent, lets talk but something slightly closer to my heart which is the equity markets, you are looking at two big global themes. One is holidays geopolitics the numbers were much worse than estimated. Durable goods were down one point or percent, jpmorgan has a comfortable growth target, have a look at the bottom of your screen, the philly semiconductor index. That is the Biggest Movement in that interact index. What is happening in the Technology Industry . Look at the longer term and you understand the turn down back to futures. Indicating 2. 38 in the dow down 1. 6 at the moment, the nasdaq at its worst day in trading in 11 months yesterday. The s p which was below its to date moving average, the dow jones wiped out 300 points. So the s p down and nasdaq work 1 away from the record highs. S p has gone 26 days without a back to back set of gains. That is the longest losing streak since 1994. It is the edifice of roaring bull markets in United States of america to getting to fracture. Our valuations stretched . Admin will join us later on to discuss the the. Equity markets are under pressure. The geopolitical play comes in the form of oil. Headlines begin a military operation in bombing in yemen, there are reports of Ground Forces on the borders to the north of yemen touches saudi arabia, the critical issue for the oil markets. Nymex is up 3. 6 . Brent has been rising for ive days, we are up 3 at 58, . 25. I want to show you a map of why we care. It all comes down to this, the critical geographical point of where oil travels, 3. 4 Million Barrels of oil. The bottom lefthand sign of the screen. That is where 3. 4 Million Barrels of oil go out every single day. If conflict arises to the south of yemen, that is the geopolitical risk at play in the markets. Your rent up 3. 13 . Nymex up 3. 5 to one dollars for cash, rounded up. Gold is also up, 11. 99. We did make it above 1200. The longest stretch of gains since 2012. Geopolitics causes deep rooted concern. Yen is ranking against every major currency that we cover. This is dollaryen, 118. 88. That is the wrap on the markets indicated lower on equities, oil is rising this is decidedly an incredibly tense situation. Back to you. Caroline we will focus even more on that tension in the middle east, lets focus on one of the factors cropping up. The oil price. They launched airstrikes against rebels who were advancing on the southern port. Prompting president , elliott docket has more. Bring up the latest. Elliott this operation led by saudi arabia back in more than 10 countries and among them the gulf allies and the likes of egypt, it began at 7 00 p. M. New york time 2 00 a. M. Local and the saudi ambassador to the United States and out like the principal objective of the mission collects we will do whatever it takes to project a legitimate from falling and placing any dangers from an outside militia. Elliott saudi arabia says it has committed 100 planes and 150,000 troops. They are providing logistical and intelligence support as well, as well as trying to help the president of yemen who was already forced to flee to avon and has since gone underground. The also say that they want to prevent yemen from being overrun by these militants and becoming more of a haven for the jihadists and the like. Al qaeda already has warmed Firm Foothold there. This ranch at al qaeda claimed responsibility for the Charlie Hebdo murders among other things. Little concerned about where yemen was going and saudi arabia trying to stop it sliding into civil war but even from becoming more unstable and forced instability across the region. Caroline its not the biggest oil water but the conflict there is having a big impact because it is right in a crucial area for oil in the middle east. Elliott f manus was suggestion it is the 39th biggest oil exporter in the world. You will not notice the stocks coming onto the market, you will notice if the instability in the situation escalates to a level where by for example shipping which brings out 3. 8 Million Barrels of oil a day down the area, if they cannot it through it will also have hurt shipping going to and from the suez canal forcing shipped to go around the southern horn of africa adding to time and cost. It is more a geographical location which orders with saudi arabia the largest oil exporter. Those are the main concerns rather than the actual oil that him and produces and uses in exports. Caroline incredible pictures being brought to us, thanks you to elliott. Manus one of the pilots may have been locked out of the cockpit before the plane went down, that is according to the New York Times. Details emerged and investigators analyzed the voice for earnings from the cockpit found at the scene, the site of the crash, the search for the blackhawks reporter that registers flight data and could provide further details that continues today, for more lets get to Andrea Rothman. A good morning, lets see these reports from the New York Times obviously it is very early to speculate exactly what happened what more do we know on the back of these reports . Yesterday they said they had heard voices which were significant because it means the pilots were not out when we asked did you hear the pilot or someone else he wouldnt specify. You have to remember there are two pilots in the cockpit, and anyone moment the pilot was out to go to the bathroom, the cockpit door has to be locked. There were rules that were put into place after 9 11 because of worries about an intruder billion that make it openable only from the inside. We can suppose that one went out to the bathroom talk to you and he asked if he was unable to get back in the pilot had a problem. The big question is did the pilot have an illness or heart attack or something wrong with him or was he for some reason not wanting the other pilot to come in, i have no idea at this point and to be honest we havent even confirmed for sure that the pilot was locked out, we should get more today. Manus we know that one black box has been recovered, but damaged, what do you think we will learn today and obviously we saw merkel and mccoy attending the site yesterday as a mark of respect. Families are beginning to be brought to the site, run us through what we know about today. Andrea the big thing we are hoping today is to find out what happened to the second quarter. As of yesterday they only had a little broken piece of it. They are still combing the site to find the rest of it. If they do find that second box they would at least be able to start looking at the parameters of the planes systems, to see what the plane was doing and who put in the order for the plane to go down unfortunately that is not going to explain what was going on in akaka and why they would not open the door. We will do our own reporting to get people to confirm this for us, another thing we dont know and i dont think well get to this today is the name of either violet. In some past sins, airlines have chosen to release the names but in this case fan given no indication as to who was behind the controls. Manus we will return to you throughout programming. Caroline lets turn our attention to greece. The European Central bank provided one Million Euros in central hunting. This raises the ceiling to just over 71 billion euros. The news comes as euro area governments gave greece until monday unlock the remaining 7 billion of its current bailout. The governor of greeces centralbank and governing Council Member urged greek governments to enact broader Structural Reforms. Grexit is not an option greece with a reason that the competitiveness of the Greek Economy has been restored over the past five years through evaluation and broad reforms in the labor market. Hence grexit would deliver no benefit but a lot of pain. For more on that timeline lets get to paul gordon in frankfurt and he joins us iphone, one is about the tensions that are clearly holding and whether the Structural Reforms that the central banker of greece is calling on will be made by true the greek government. This is the hope and desire of the ecb, this is why the ecb continues to extend incremental amounts of emergency liquidity assistance on a weekly basis. The latest increases mean that the ela is up by more than 10 billion euros since greece was cut off from regular financing operations. They are still not huge amounts. All the ecb is trying to do is to compensate in a positive outflows, which have been caused by true the uncertainty of the greek reform, but not to give them so much money that they can effectively bail out the government on their own. He probably has to do that. By saying last night this is an historical opportunity for the government which should not be missed. He said stronger reforms are needed in the option is to implement them and he says they would he backed by a large majority of forces in the country. He said the government is very close his words, to an agreement. We are not hearing the same optimism from the other countries at the moment. Caroline anymore plans for talks, we understand that we have the meetings between merkel and the Prime Minister earlier this week, but will there be far more meetings and calls going on because the clock is ticking. We have until monday. There have been a lot of deadlines as you are aware we will see what happens on monday when it arrives, but certainly the pressure is now on greece to come on monday with a set of proposals which are inadequate to allow further rate disbursements. There is at least 1. 2 billion euros on the table at the moment. Greece has got expenses coming up, 1. 5 billion euros of tension and salary payments. The government is taking cash from the republic and it could be weeks before they run out of funds. The ecb is not going to cover that. There only one to cover the positive outflow so some kind of deal has to be struck as soon as possible. Manus lets get you up to date with some of the top headlines. There is a deal with boeing. The order is valued at 7. 7 billion and the move comes as chinas or the largest carrier pushes forward. Facebook is opening up its applications with other Software Developers and at features, apple plans to introduce tradein programs for iphones in china, that is according to people million with it. Customers will be able to take older iphones out of stores in china and credit against the companys policy areas caroline join the conversation on twitter and the technology news, the tech selloff and chipmakers leading declines in stock market. Let us so your thoughts. Perhaps not too many on one direction. Manus i am illustrated. Just want to look at the map of the spice girls, didnt make money, up next, much more important issues, well talk about reese and debt. We can only talk about the problem stay tuned for that after this message. Manus joe in our u. S. Office. He summed it up quite nicely. Lets talk about with our next guest about what he thinks in terms of greece and the eurozone, he joins us now or it there is nothing prophetic, even that debt to gdp is roaring, the emergency funding and the emergency lifeline run the ecb, theyre up at 71 billion, where are we in this, is this the crunch time and what is your view in terms of contagion . Where we are why i thought the greek governments had until the second half of april before runs out of cash, in terms of the deadline to provide the greek government as opposed to the greek banks with funding that is really going to be it. To have a little bit of time before they have to draw the next bank and start kicking that can down the road, the new governments cop located. There is clearly a conflict between what the eurozone finance ministers and what the new week government has promised. You do have that conflict between politics and economics and finance are which we are not sure how that is going to be played out some a there is a little bit of time at least for greek governments to persuade the finance ministers eurogroup to start releasing some of that cash on the second a lot. Caroline you are not standing by this monday deadline that the company got in place that they need a full set of Structural Reforms and be up to scratch in terms of what the finance ministers want to see . Whether we get enough detail isnt clear, the government did provide some sketchy details with a say we will extend the second bailout to june and now it is debatable exactly how much detail and regularity they have to provide, of course its different from the policies that they promised so there is plenty to play out of the second bailout, then of course when you get to june, our strong view is despite what the greek Prime Minister says greek greece will need a third bailout, to get back to the start of this where what he wanted do for a 3050 eurozone theyll up, you can get back to policies again we might even be looking at a second greek election if the demands from the eurogroup and the rest of the eurozone are too great for the greek government, i did this at the top of the show, it is amazing how, on the turn of a dime the geopolitics can reallys markets. Here we have been defending the legitimacy of the government in yemen, Oil Spikes Higher brent is up, wti is up, this turned the oil story and this is potentially something that unsettles all of the arguments about disinflation. If we move into a higher conflict areas in the middle east. Elliott a couple of months ago arise in the oil prices was good with the stock market. If you remember back to the beginning of the year when everybody was really worried about the nation and oil prices sinking, it is a poignant reminder that there is a great deal of potential and instability in many places around the world, the important not just of a small nation in a geopolitical situation but a geographical location is where it is affecting transport volumes. Caroline how does this hit the likes of the u. S. Economy, we soul saw durable goods fault yesterday and you can see the repercussions of a much Lower Oil Price and also making the strong dollar a key headwind when it comes to wanting to buy goods. Where do you see the current situation, what is the outlook . In terms of the change in show in the oil price, that is on the whole good for the u. S. Economy but it does shift the components if you like of gdp away from investments in energy toward consumption. We havent really seen that boost over the last couple of months. On the whole it is good for the u. S. Economy. Theyre not worried about future stagnation in general theyre worried about the economy in the longterm . I think are many accepted that in due course Interest Rates would rise. What we may begin to see is a sharp fall in energy which is having a noticeable effect. How long that will last is open to debate, in terms of the Bigger Picture when you take into account the massive windfall from lower gasoline prices undoubtedly that will drive the economy forward. Manus thank you for giving us your thoughts on greece and the u. S. Caroline thank you coming up on countdown, zuckerberg faces developers. We will tell you what you need to know. Manus youre watching countdown. How are the markets looking . The dollar and the currency markets, this is the trend we are seeing this morning, up a quadrant, what is trending it is jp why, dollaryen. It is the single biggest moving currency. That breaking news that saudi arabia is bombing yemen, it is involved in of calming mission in llama yemen, saudi arabia along with a host of allies troops are massing on the border areas this geopolitical situation is rising, markets are averse to risk, yen is rising against all of its major currency counterparts across the globe, hsbc also this morning saying get ready for more quantitative easing, that might be something that would bolster that, the yen is rising in the dollar is declining as if any to show you enter additional map there is a host of reasons going on at the moment, equity markets coming under pressure, oil prices are rising and that should help, but what youve got is a weaker durable goods number, you have the chief fixed income at Morgan Stanley, they say it is not impossible that they could reduce rates, so there is a whole host of critical issues, dollar is a little bit lower, longerterm Morgan Stanley say that it will rise, sometimes you have to give up the ghost and they did, they told the market we will not stand in the rate way of the brazilian real, this is the dollar up the brazilian rail down. The question you have to ask yourself id away, it is given the moniker of the worst performing currency in 2015. That takes some pretty achievement. What once you have dollar real have to ask yourself, are we about to reassert this upward trend in terms of dollar and downward trend in terms of the real. Caroline lets take a look at some of our other top stories because David Cameron ruled out increasing vat if he wins the major election. The laborer position said on tuesday that he could well increase the sales levy, he will plead guilty to charges that he traded with iran, will pay more than 200 million for violating u. S. Sanctions. It is believed to be the largest criminal fine in a sanctions case. Englands premier Football League posted its first rocket since 1999 that is after it saw income from broadcasting search. Last month they sold the tv rights to sky for a record 5. 1 billion town. That is a 70 increase. Manus facebook is opening its messenger at the developers and businesses. Mark zuckerberg also announced his superficial plan for Virtual Reality. Here is everything you need to know from the keynote speech. Mark if you look at facebook five years ago, most of the content people shared was tech and now today it is photos. Visual content. If you fastforward five years it will be video and if you look out the on that it will be even more immersive content like vr and ar. I would to show you something kind of fun, it is a bit futuristic but it is after example of the kind of content we expect to see in the system, these are spherical videos, you can move around within it and change your viewing angle, this is not something you just consumed passively, youre actually interacting with it and you feel like you are there so soon will start supporting spherical videos in the news today we are introducing the messenger but farm so we will talk about to throw things the first is giving people more tools for expression, i will show you. Were extending composer and messenger and now you will be able to find Different Services that help you say anything that you want better, you can create content or share directly into messenger. There is enter example of a quick video we made for this with an app called jim jeb, i said this to the developer team, congratulating them on shipping this it is simple, it is fun and easy. The second thing we want to talk about is making messenger a place where you can easily communicate with the business is you care about so for example right after you purchase something online need to change or order you will receive a receipt as well as shipping information and for the rest of the talk today we will focus on all the ways that you can use the Facebook Family to build grow and modify the surroundings. We are launching new versions of our comment plugins and that idiot loggins, so in some but he sent me this article telling me about how to raise a kind of daughter, i wanted to comment the new version of the comments plugin, when i comment on an article in the Huffington Post the same comment will appear on the facebook age as well, that means when my sister replies, we will see a conversation together in the same place so lets talk about video, today we are introducing the facebook and vetted video player, which makes it easy to see key video publicly shared on facebook and put it on the site, this greatly increases the number of videos you can pull from and if youre posting video content on facebook, this dramatically increases the re potential reach of your content. Mark in the next decade we will build Amazing Things together, lets connect to the world. Caroline lets stick with the tech team, we know the tedium of sending out job applications but what if Top Companies applied to you echo that is the premise of this site, here with more is hired ceo and cofounder matt thank you much for joining us. I speak to so many of these Tech Startups and Companies Hiring in trouble and and in particular every time the key challenge is talent. You are saying there is a whole pool of talent the u. K. Developers or are they coming internationally . It is a combination. So of the people that use it for job hunting they are happily employed at the Current Company and are using it to wave a white flag and say i might be interested in seeing what else is out there on the market areas it shows you how it is changed, youve that people and invite people to join. Tell me about the relationship, how do you attract people toward you . One group of people are referrals from alumni. If you have gone to the process in the past youre happy with it. Right now we have about 2000 developers applying every single month to the u. K. Youre saying on average you are getting one job per 30 minutes placement at the moment that is pretty phenomenal pace of people being placed, what i am also interested in the pay their he and sees here and in the United States, have offices in new york and sand rent if youre looking at a new york developer the cost of developing for apple, 100 30,000 is what they want, in the u. K. It is 56,000 pounds will that start to level off, you dont need to be set in an office. You can work remotely one of the other interesting things were seeing is u. S. Companies having second offices in london hiring more and more developers so we can have the youth market as an average to 160 per year is not uncommon. Manus how tight is the market . Caroline says people the top part is finding the right talent. Everything i read here it is rich pickings, talk to us about the market lace, is it a tight marketplace . It is very competitive, it is not uncommon for a developer to receive 10 to 20 officers offers over the course of a week. It is really important that companies have a Creative Process down so that when they do find the right people they can have the selective process in less than 10 days otherwise they just lose out on fantastic talent. Caroline it is a sellers market . Absolutely a sellers market. Its better than sending a resume into a black hole, im interested that london is your first city outside the United States, what about the other tech hubs vying for competition when it comes to the u. K. , are you looking for other offices in the United Kingdom . We opening another new office every six weeks so we definitely have huge opportunities to expand over the coming months. Manus where is the easiest lace to do business are the american marketplaces much more attuned or is this experience something that is different here, have you had to adjust the model to make the leap or is it sort of a global rollout program . It translated incredibly well, we had to change just some legal terms and dollars to pounds on the website both companies are ready to go in the market and they want us to launch, to give me a sense of when the price discrepancies and . When do we start to see all developers, no matter where in the world being able to charge the same amounts, i realize a lot of people are tethered to the philippines and great developing talent there, are we going to see all of these talents from around the world to sending upon london and america and will london have to start to pay the same as in america . That is an interesting question, unfortunately the visa system is still fundamentally broken. There are only 65,000 visas available every year, until that changes i think u. S. Developers will demand a trip premium. Manus you had an evaluation recently, when do you hit a billion dollars and who . The goal of the company is not to sell, the income rate will stab a fundamental problem. And the cofounder six periods as well we were all super frustrated with the potential ways of finding and attracting talent. Recruiters and headhunters were expensive and inconsistent, we decided to solve our own problems unfortunately one of our biggest customers and the central San Francisco office and clean the vp engineer, and of design, it has been fantastic to be able to use it. Kirilenko you get the cream of the crop it has been wonderful speaking to you, here he is the ceo and cofounder manus join us all this morning, tell us what you want to hear about. I am manus cranny and caroline hyde. Caroline coming up the Stock Exchanges biggest shareholder is selling its stake, the multibilliondollar deal after the break caroline welcome back were getting some breaking news from adidas. Their longtime Strategy Plan to 2020, the third time the chief executive has been trying to set a longterm goal without having to reassess them. We are getting the fact that they set their sights on that income so profit rising at 15 per year on average. That is hefty doubledigit growth. When it comes to ethics neutral foreigncurrency sales, they want high singledigit rates of growth per year, so clearly they have to be looking for cost savings, highend products, they say ecommerce will be where it is at, 2 billion euros by 2020 is what they want targets for online sales, and the Shareholder Program of up to 1. 5 billion euros on a multiyear basis to continue so clearly dividends are also a focus, they say the payout ratio is going to be 30 to 50 in terms of dividend payout clearly this is a company just trying to show how it will tackle the likes of nike. Adidas has been hit very hard with a market share declined in the u. S. And europe. They really have to tackle head on nike who has embraced the idea of wearing trainers the matter the sport. Also under armour, another startup in the space for clothing for sports, pouring money into markets, their promising 15 per year. Manus lets shift gears a little bit. Selling the entire stake in the London Stock Exchange for one point or billion pounds. Elliott has a little bit more. This announcement came at the latter part of the day yesterday, this 17 stake. Here dubais easily the biggest shareholder in the London Stock Exchange, selling all of that at a price between 22 pound 50 and 23 pounds the close yesterday was 25 pounds 38 so we should see some kind of movement in the London Stock Exchange. Why is it selling now, we see the uptake in equities as of late but ever since they held their shares in london, the shares have risen by just over half so they can book a tidy profit and allocate those funds the somewhere else. Interestingly enough, dubai also got a hold of its stake at the time in 2007 there is a lot of bed hopping and swapping going on and mergers and acquisitions they were trying to buy the swedish base exchange which nasdaq also wanted so they have worked out a deal whereby they would get a steak in nasdaq and use the nasdaq brand and use the technology, at the same time it would get nasdaq stake in the London Stock Exchange because nasdaq tried and failed a couple of times. The other interesting aspect of the deal is now that one country is interested, that leaves another one as the biggest shareholder which is qatar with a stake of over 10 . Now that one big shareholder is out of the way i would suspect that one Stock Exchange could be act in play but the main news today is that you buy is ending its role as the biggest shareholder in the London Stock Exchange. It is held that position for the last eight years and is selling every share that it owns. Will be set across for anything that comes through there. Coming up, we will be looking at the favorite stories on lumber. I will not be covering any of that but we will get a little bit of lose in their the london brewery, historically low Interest Rates. Manus we heard from Mark Zuckerberg this morning in terms of what will be available, facebook posted developers throughout the session and cory johnson has the latest. Corey here in San Francisco along the San Francisco bay 2500 Application Developers have gathered to listen to Mark Zuckerberg and facebook to listen to what facebook will do to open up a new world for development in that world is the Facebook Messenger at they are it from an app into a platform a platform needs other developers at other countries can write their developers right there coded software so that it will show up inside Facebook Messenger so suddenly it can carry altered content, video graphics moving images it can help deliver payments and receipts from a purchase, a customer can communicate with a business do a transaction and get a confirmation and get a receipt, even make the payment happen all on Something Like Facebook Messenger, this could be a Huge Development is facebook told us they are 600 Million People using Facebook Messenger, one of the most popular in the world and that is in the context of a trekking world of text messages, whether china mobile or verizon or at t or British Telecom the grote growth rates are shrinking in the growth rates for over the top messaging like whatsapp or snapchat or Facebook Messenger, that is growing so to enable the platform we could create a whole new Business Model and as i mentioned the 2500 people were here to write code that could work on things like Facebook Messenger, that is some of the biggest news out of this conference with Mark Zuckerberg. Shirley other things they are showing off like the oculus Virtual Reality with an updated software pratt for platform including realtime broadcasting of the oculus three dvr, i also talk to other changes new ways for advertisers to understand how their ads are working or failing, that is behind the scenes at facebook at some of the biggest news again is the platform is asian of Facebook Messenger, it could be a big game changer, the possibilities become endless as long as people are inspired to think of something new to do with messenger which is an open platform. Cory johnson from bloomberg. Caroline i have played with the headset before and i would give them ago they are a lot of fun to even if you are not enter addicted gamer, just an our from the start of european trading at this point we always like to check out our favorites from burkes digital output or it mine is about crowdfunding and booze. Camden brewer, have you ever had their logger . Manus no. Carolyn girl it is all about caroline it is all about the smaller microbreweries getting in him a it is a very clever way to not only up your marketing but to raise money to expand, talk about getting crowd people going to cedars and raising money not only from investors but individuals who like the product, suddenly you can build momentum and terms of getting the brand identity out there so they will raise 3. 5 Million Pounds you can buy shares for 10 pounds overall. Manus we will be back in a couple minutes. Caroline the latest on the crude market through the commodity touched 60 bucks a barrel. Manus saudi arabia and its allies bomb shiite targets. Caroline a report suggests that one pilot left the cockpit before the planes descent. We go live to france for the latest in the rescue efforts. Manus greek banks get 1 billion euros but the verdict is out as to whether greece can be trusted to come up with adequate Economic Reforms before monday. Caroline welcome to countdown. Coming up on countdown, one heartthrob leaves the richest boy band in Music History and living with his ninth. Zayne is dishing one direction. Will the four others carry on and make more big hits . Stay tuned. That story is coming up. Now, coming up we have got looking out today we get numbers coming from foster wheeler. We are getting the numbers first with an interview with the ceo. Thank you for joining us this morning. The number starting to break as we speak. We see full year results. Revenue just off 4 billion bpounds pounds. You are the man with the insight. You are exposed to oil and gas. How is that part of this . Foster wheeler is focusing on four markets, oil and gas mining, clean energy and infrastructure. What we are reporting today is that we see the mining is this because of the commodity prices, the oil and asgas sector, has been going down. So well be seeing a negative growth. In the rnange of low single digits. What is important is the portfolio is well hedged. Because it is, we see that the power business has been growing with 16 . Which balance the portfolio and we still deliver positive growth. Manus lets bring our viewers some of our top headlines which is the dividend comes in at 43. 3 pence per share. You see growth in new clean energy downstream and oil and gas. Tell us what is happening. Oil is down by 50 . Over the past year. Are clients canceling orders, renegotiating or squeezing you on margins . Samir what has been happening is that as you remember, when the dollar oil prices were 10, operators are making 12 are sent margin. When the prices went up to 120 they did not make more than 10 margin. The reason for that because of the supply chain in the Service Industry has been going up in price because of all the inflation and all the costs, which has been occurred in that. What has happened lately is that since july last year, we have seen the fall under 20 today, which is half the price. But we do not supply chain going as fast. Which means now there is a disparity between how much margins our clients can do. There were they come to us and get engaged in discussions about what are we going to do different in order to deliver this type of jobs on time and on budget but also at the same time, leaving them with a good margin. That is going to be a big challenge in the industry. Caroline talk about the north sea. We saw in the budget for the United Kingdom, trying to promote investment in that area. Are you seeing much appetite in that north sesa . North sea . Samir it is an important asset for the uk in terms of skills and possibilities to train our people for the export business. I do not see that the north sea is coming to the sunset. Quite, still a long journey. There are 35 billion barrels that need to be inspected. There will be a different type of work in the next decades. That will provide quite a lot of jobs. Any help with the government doing today, lowering will increase the level of investment and make the people interested and excited to continue to work. Manus im interested. You are wellgeographically diverse. We are re rebalancing. But does that mean we are going to see divestment. If so, where . What size of divestment will you make to reshape that portfolio and over what period of time . Samir at the moment our strategy is solid and we do not the any divestment this plan. To the contrary we are looking on acquisitions and further mergers and twos the about how we are able to unleash more value for shareholders. So this is a Good Opportunity to consolidate the business and make the business even stronger. Manus do you think there is by because of the collapse in price, because of the pressure on some Oil Services Company . Anything we read says that you are the victim as opposed to the player. Samir at the moment, we have been the one who hath and actually consolidating because were the first one doing as sa big as a big scheme. Accommodation of Amec Foster Wheeler not only gives us the potential to offers a that it is a fantastic but form to get the revenue synergy and grow the business. What we are looking for, one plus one is to make 3, 4, or five. Caroline where are you looking for mergers, potential acquisitions . Samir in the middle east quite a good growth. Latin america is an exciting thing. Also we will not forget what is happening in the u. S. Because of the evolution of oil and gas nd and the prices, it is not only in the upstream cycle which is exciting that it is also the lng plan on to refining where Amec Foster Wheeler has a fantastic vision and that is in the sweet spot. Manus how concerned should we be with the overnight saudi going on Bombing Missions into yemen. It is strategically important for an oil man. What does this do in terms of your perception . Youre waking up to this kind of news . Samir two politically, yemen is one of three or four countries which are geo politically, yemen is one of the three or four countries the issues and conflicts we have there. The conflict has and driven by interest in some other countries outside of yemen who are pushing the teams in the region. Everybody speaks about what is the role of iran iwith the shia. What is the position of the sunni muslims . How long are we going to agree and accept the disturbances and instability . I think the move now today from saudi arabia is to bring more stability in the region, because this is the south of saudi. I do not see this as a longterm thing. Ice to this as shortterm i see this as shortterm. Caroline final question. 60 a barrel. Is that what you are seeing for this year . Samir i would not be here. I would be rtrading. When i speak with my colleagues, they of this is going to be a ushaped recovery rather than vshaped. Today, the view is that we will be seeing 65 for the longer period before we see a recovery. Caroline thank you very much. The chief executive of Amec Foster Wheeler. Manus coming up, bringing breathing greece sbs banks. The banks remained frozen. Manus breaking news now. As we said earlier and programming selling a stake in the London Stock Exchange. Our middle east editor Elliott Gotkine will join us later on the back of that conversation. In the meantime, i want to take you through where we are with them a big market moves. This is crude oil. If you do not know where the big trend was over the last 24 months. On the back of saudi getting involved on a Bombing Mission into yemen, this is them. A long with the other comrades or allies. This is wti. We have got this is brent rising by 3. 5 . Brent has been rising for five days. Longest winning streak since june, 2014. Jobs. Have a look at this map it shows you the position of yemen. The size. You have the port. If there i s any disruption in terms of the 3. 4 Million Barrels of oil that pass theourough per day. Tank is will have to go around the port of africa rather than through that act as into the gulf of aden. That is why you see this i can oil prices. Let me show you the nymex crude price. You are seeing volumes go through on nymex crude. Trading at 51. 30. Lines were three times the daily volume. 51. 80. Nymex up 4 . What you have got is a real spiky move. 17 rally in five days in the price of wti. West texas intermediate. This is the price of crude let me show you where we are with gold. G. We broke 1200. This is the recap on your nymex. 51 and . 12. 51. 12. Gold. This is the seventh straight day. A whole variety of reasons in regards to the dollar. The dollar has been vacillating. Just decided to give a bit in terms of the timing of when the fed will go. This is the longest winning streak in gold. 7 Straight Days in a row. Since 20 we will need to be patient. We are searching for a second black box. Its container has been found by the black ox has not been found. At this moment people are on the scene searching. They will continue into the results we want our conquest. 00 a are accomplished. Manus we want to bring subheadline. German wings have no information on the report of the last out of the cockpit. German wings cant confirm or deny the New York Times report. German wings will not speculate on this matter. They will the probe is a matter for authorities. North are breaking news headlines. Detracting from some of the headlines from the New York Times. Lets get to Andrea Rothman in paris. You heard me giving you those details. What do you know so far in terms of today . Andrea ok, i have to say i have yet. I talked to airbus. They are aware of the giving further information. To me, it sounds very credible. Yesterday, we talked to ba, the director of the investigation bureau. We said what did you hear when you listen to the car pit the cockpit voice recording . We heard voices. We said, where they the pilot . He got cagey. No im not going to say whose voices. The fact he did not immediately a yes, we heard the pilot. Suggest that there may be something funny about what they are hearing. You can imagine what they are seeing if one of the pilot was locked out. You would hear screaming people. People would be knocking on the door. The big question. We are pressing the ba for more information. The big question would be if one of the pilots could not get back in, why . Did the first pilot not want to let him back in . Was there a sudden illness . Did he fall unconscious . You will remember that after 9 11, they made the changes in the way cockpits operated. It is impossible to get into the cockpit from the inside because they want to make sure an intruder cannot get in. It has to be the pilot from the inside who opens it. Manus thank you for bringing us uptodate. Andrea rothman in paris. Caroline lets look at greece. The European Central bank provided more than one billion euros in extra funding to greek banks. This is the biggest increase in emergency funding from the ecb in a month. It raising the ceiling to 71 billion euros. The move comes ats euro area governments gave greece until monday to offer sufficient reforms to unlock the remaining 7 billion of its current bailout. The governor of greeces central bank and ecb governing Council Member has been urging the greek government to enact broad Structural Reforms. That was after he spoke at the London School of economics last night. For more on this lets get to paul in franklin. I mean, how much relief will this newest extension of funding provided . 1 billion songs like a lot but then. When you look at 71 billion in total paul it will provide a huge amount of relief for the country. What this what he is designed to do it keep the banks afloat. Not the government. The point is the uncertainty surrounding the debate over wheter ur whether aid payments will continue. The banks need cash, they need access. They have access to emergency liquidity assistance which is at 71 billion euros. It is up from 59. 5 billion euros when the banks were cut off because of the problems with the aid program. But the supervisory arm of the ecb has stopped the banks from adding to the holdings of treasury bills. They are not allowed to find that the government. That would be illegal. That is why the talks continue in the deadline continue to mount for greece. Until moneday to provide reform proposals which is seen by the other euro area countries as adequate to allow for the payment. Caroline thank you very much, indeed. Plenty to go coming down to the wire when it comes to greece. Coming up, oil surges as saudi arabia bombs rebel targets in yemen. Going live to riyaad. Oil prices have been up 18 . Wti crude rise in that amount of five days. The biggest move since 2011. Manus you are watching countdown. Money is coming out of most major currencies and the yen is rising. This is dollaryen. A one way trade. The yen is rising against all major currencies. As saudi arabia and allies engage in a Bombing Mission across shiite positions in yem en. The yen is rising. One is geopolitical concerns and there is less risk in the market reflected mostly in the markets. They are coming lower in asia after the u. S. Weve got growth concerns and downgrades to u. S. Growth coming through. Hsbc the to become us was on the tape this morning with our colleagues in asias and get ready for more quantitative easing to come through from t he japanese going into the second quarter. Now yen rising. The dollar is down. This is the basket of currencies. The dollar index. Weaker durable goods. Yesterday that set the tone. Equity markets coming lower. Wiping out his 2015 gains. Morgan stanleys chief fixed income tournament says, get ready to rai the fed to raise rates. Talksa about the ability to go into negative rates. You have got the dollar trying to struggle with what is the best way to go. Morgan stanley said the dollar will be reinstated. When you throw in the staffs get ready for this. This is what happened to the real yesterday. It claimed to new moniker, which is the worst performing currency in developed markets. What you have got there is the real down 2 . The brazilian real down by 2 . But it a sickly is the dollar rising and the real falling it basically is the dollar rising anna real fal and the real falling. Caroline lets check out some of our other top stories on bloomberg. Uk Prime Minister David Cameron moves out increasing vat if he wins the may 7 election. This wrongfooted the labor opposition. He said tuesday he could increase the sales levy. It will plead guilty to charges that it traded with iran and su dan. T he the fine is believed to be the largest in a sanctions case. And Englands Premier League football has posted its first profit since 1999. After it saw income from broadcasting search. Left with the leak sold tv right s for a record 5. 1 billion pounds. That was a 70 increase in price in previous tv right. You can find more on that story and many more on bloomberg. Com. Manus saudi arabia has been joined into complex with yemen. As i was saying when it was showing the price of the market. Backed by regional allies the kingdom launched airstrikes against huiti rebels that were a band were advancing on the gulf of aden. Glenn currie joins us on the phone from riyaad. This is the new king really beginning to show his metal. What is the latest . Glenn saudi arabia is asserting itself in the region. With this approach to yemen with his military campaign. There has been a new king, a new minister of defense. Theyve decided that yemen is strategic enough to intervene and they should prevent what they see as the rain influence gaining on the southern border. Manus why are the saudis getting involved now . There were meetings over the weekend, discussions between the saudis and their allies in terms of the escalation. We know the leader of yemen had fled. This has been discussed why hit the which now . Glen with the government threatened and with the president s government threatened in aden the saudi arabia and government view this as a red line. They felt that if aden fell, the tmn the ukrainians would have a strong foothold in the southern arabian peninsula. The iranians would have a foothold. Based on conversations with people, it was strategic and important enough to get involved at least militarily through an air campaign. Manus obviously, its a very critical time for iran. Thereyre in this last leg of pressure to negotiate a a settlement with the United States in terms of their nuclear abilities. The implications are very forthright in the press reports that the backdrop to the pressure on yemen, the leadership, is being driven by iran. What are the implications at this stage . Glen i ts difficult to determine how much the iranians are playing a role in yemen. If you have read hutti comments they say that iran has little presence and they are doing this on their own. Oon the other side, you hav the president and the saudi government which is saying that iran is behind this, that they are the catalyst for this change in yemen. They fear that. They have seen iran extend its influence in in iraq. They worry about syria and lebanon. This is much closer to home. It borders saudi arabia. Manus glen, think you very much for bringing us up to date on the conditions there. That is glenn carry in saudi arabia. Caroline the air strikes has sent the price of crude surging. Lets take a look at the oil producer on the other side iran lifting oil sanchez could hit Global Market long before the nation starts pumping more crude. Lets bring in our oral strategist. We were just hearing there from glen about the applications of the yemen destabilization going on. What affect is this having on the negotiations that are going on between iran and the United States . Does this put everything on the back order . Guest no i do not think it puts everything on the back burner. It is an added conversation that on the one hand you have the United States perhaps providing some intelligence support to saudi arabia and its allies in yemen. On the other side, you have iran backing the hutti rebeless to sopm extent. Me to some extent. It is unclear how much r iranian influence. The negotiations are still going on. Foreign ministers flew to yemen to continue negotiations. These negotiations are much wider than iran and the United States. Iran and the u. N. Security council plus germany. The Nuclear Issue is much bigger. Yemen is import for the region and important for oil, but i think the Nuclear Issue is of much more global significant. I dont think it will be fatally derailed, at least not the way things are going at the moment. Manus i am going to bring in admin from edmund. You are here. Lets try and bring these strands together. Ivan talking about the price of oil, up 17 in five days. Ive been talking about the price of oil. This Geopolitical Police has more effect to life. Edmund it is about time. I have been waiting for this. I had to declare interest. My fund has been long oil. To a certain degree. Im very happy it is going back up. Not for these reasons. But there is a Crucial Point which is that people forgot about geopolitics. Russiaukraine did not matter. The middle east did not matter. All that matters is crude oil in the massive amount it in storage in the states. Actually, no. There are. Of lets not there are things that matter. The amount of Service Production is not that great. The point is, we have had a massive price reaction. The surplus of Oil Production over demand that we have is maybe 2 . 3 . It is not 5 . It is not that much. Manus we caught up with you last week and you are saying look, iran could come back online. It is not so much the extra barrels. Its the store system. That is the glut that could counteract that positions. Julian 30 Million Barrels estimated to be in storage in tankers off iran. That is a oneoff hit. To stain that increase in production, iran would have to rehabilitate its field. It would have to open up the field it has shut in as a result of sanchez. No one knows what state those are in. Estimates seem to range between half a Million Barrels a day with most optimistically one Million Barrels a day of iranian production. But that new production will take time, because that will we cry the lifting of will require the lifting of sanctions and a significant way. Whereas shifting the oil in tankers can happen more quickly. It will leak out onc e a deal start being done, buyers will come forward. That is a relatively small in committee. Danielle nouy caroline you are syaing geopolitical risk is important. This seems to have reared its head overnight. Do you have any views as to how long we could do this up taken Oil Prices Last . Edmund i think it is difficult to forecast the oil price because nobody but nobody got it right. 100 down to 50. The economics we talked about u. S. Shale. If we exclude u. S. Shale, it has been going down. That is the point. U. S. Shale has made the difference. With shale, you have publications which are that it requires a lot of investment and you have a very sharp ramp up in the production of oil wells, but also, they the plea very quickly, i. E. , the production ramp up and dice on quickly without the new investment. You need to keep making new wells. Caroline they are stopping at the moment. Edmund capex is being slashed by 40 plus of the u. S. So that tells you that this peak will be reached soon. Then we will start to decline in the u. S. Manus before we go, escalation risk with saudi and the allies in the you many the yemeni situation. It is early. Julian the information we are hearing is that airstrike are likely to continue. The feeling is that any kind of ground involvement is unlike. I do not think iran at the moemment, i do not see this escalating is a hot war between saudi arabia and iran. That is the market worry. Manus edmund, we are going to get into market shortly after the break. Caroline your reaction to the spike in oil prices. To you feel this tension will escalate . You can follow us on twitter. Manus next we bring the latest on greeces debt problems. Stay tuned for that. Banks deposits in greece ha ve tanked. Individuals and corporations are not sure that their money is eighth in the banks. Safe in the banks. The greek state owes a lot of money. Greeces debt is near 180 , by far the highest in the eurozone. Making worse, greeces gdp is falling again. And unemployment has stopped improving. The economy had a period of improvement in 2014, but a new government has even the Financial Market jitters jitters that can be seen in the yield of the 10year greek government bond. Yield started rising again last year and that indicate that investors are less confident. So, who pays if greece does default . European governments will take the biggest hit. They own 62 of greeces debt. The private sector claim 70 , and the imf 10 . All could lose billions if greece does not pay back its loans. Caroline welcome back after that great piece. Lets talk more on greece. With edmund. You bored ofr greece are you worried that we will hit bring concert hit for admission . Brinkmanship . Edmund it is in the interest of the eurozone and the greek government to get the best deal they can get. To be seen to be extracting the best deal. They come from two different positions. They have two different electrorates to satisfied. They have to go that extra mile. Manus but i have a bit of research it is live tv. I have written a piece this morning. There are three options. One, its unresolved. They dip and write their own currency and they get europe to back that. That is the somersault, or the catastrophe scenario. New currency. They poo poo on their debts and they are not coming back. A messy exit. What version will it be . Edmund the version where everyone agrees to keep them in. Caroline a third bailout. This is a can that is going to be kicked. Edmund it is the least painful alternative. There are things greece can do. The greeks have been a massive amount in terms of austerity. The only ones that have done a 32 large degree are the greeks. Done austerity to a large degree are the greeks. Sith the crisis, they have suffered far more than anybody else in all of europe since the crisis. They would like to see some recognition of that fact. The fact is they should never have than in the eurozone. That was a political decision. I agree with you. The point is all eurozone governments have had to as a fitted admit the fact they let them in. Manus know that you help them. Edmund the bill has arrived. You let them enter political reasons. The bill has arrived. Caroline it seems that contagion is contained in the moment. We not seeing celebs when it comes to worries about italy. Are you looking pretty rosy . Edmund again, it is a fragile equilibrium we have. On one hand, bond yields are low. Government profiting. And the refund thing is negligible. Fantastic. Good news. The currency weakens. The currency has been huge. You look at all of the american investors buying europe hand over fist. To get exposure to the weaker euro. That is a fantastic economic boon. We have not talked about the oil price which is a third positive. Europe is benefiting about as much as they possibly can right now. Caroline staying with us. Global equity portfolio manager. Get his take on where you should be placing your money ahead of the open. A quick look at what the city of london is looking like. Manus we have live pictures. It is not edmund ching ins on form. Equity markets are indicated lower. Paris down 34 pionts. London down 56 points. Caroline welcome back. Six minutes away from the start of most European Equity trading. Bring back edmund ching. Talk to us about the key movers. Adidas promising the world from this time until 2020 they have had two strategies that have not gone to plan. They are promising to hand back money to investors. Profits of 50 per year. Are you attracted . Edmund i find it it dreadfully expensive stock. Between the two you have nike. The two heavyweights and a friend of sports are nike and adidas. I would take nike every day of the week. It is something americans happen to do well. Adidas is a Great Company through do not get me wrong, but as an as is valuation, i think it is 28 times p. It is stratospheric it benefits from the weak euro. You do not make shoes in ger many. The costs are most dollar base rather than euro based. They do not benefit from the week euro. Aerospace and defense not adidas. They have. Manus they are up 40 in europe. There is not much in that. Im typing out, no, dont like adidas. Take nike. Weak euro. Lse, bailing, good bad . Edmund youve had so Many Exchange mergers. So, they have been hunting around for a new strategic direction. For the index business because they resold that to me is a sign of good strategic direction. Those indices are growing. Exchanges are growing based upon these indices. That is where the business is going. But for people at lse pushing indices, that is where the money goes. Caroline it is always great having you on. In full throttle this morning. Manus on the move is coming up next. Jon ferro is back. They have got the chairman of lloyds of london. That up next onon on the move. Jonathan good morning and welcome to on the move. We are moments away from the start of european trading. A choppy 24 hours to the equity markets. The nasdaq taking a beating down the most since april. That has followed to two through tot the asian session. Lets go straight to your morning brief. Saudi arabia and its allies lost airs writes on rebel targets and yemen. Launches air strikes. Wti heads for its biggest week of gain since 2009. Brent climbs 5. 7 this morning. Greek breathing space. The ecb makes more than one billion euros of extra funding available to lenders. Can the country avoid a financial meltdown . Those are some of the things we are watching. A look at the futures market getting absolutely euro stoxx 50 futures up i 1 . Dax futures lower by 170 points. Features indicating a lower market open. Manus we have got mario draghi speaking later on today. New jobs. Uk retail sales will be out later on. Politics and growth are the two key. Issues. Geopolitical issues in the gulf region 2. 4 Million Barrels of oil a day pass through that tiny distance at the tip of yemen. If there is an escalation in the yemen dispute, what issue will that bring to the marketplace . Now the