Could be delayed due to a critical issue. Technology problems they say. Connectivity problems. Today were expecting another wild one. Pretty flat. Lets check in on the british pound. That is trading high. 1. 68. 18. Why . Once again, were showing strength in the u. K. Economy. 6. 6 unemployment. The lowest in five years. Wage increases, though, that is few and far between. That is lower, of course slower than inflation. And grocery prices are going up. Nevertheless, this could push mash carney to have to act mark carney to have to act. There are concerns about the higher housing prices in the u. K. A look at a twoday basis just to see the rise that we had on the british pound. Current interest trading particularly higher. Lets have a look at european stocks. I want to see if we have indeed opened. There are concerns that we might be delayed. This appears to be yesterdays trading at the moment. Well have a look at particular stocks. We want to get to home retail. Up 1. 2 this morning. Why . It owns home base as well. Both showing better than expected sales growth. Margins might be decrease. They are seeing sales ramping up. The weather is better. Home retail currently up 1. 2 . In a skort yum that just won a project to help build a road in scot land. 745 Million Pound project. Oull see that trade rise. Ulberry up off 4. 3 . They have no c. E. O. They have no creative director. This is a company lost in direction. We have the global head of equity strategy at citigroup. Welcome to on the move. Global indices, stock indices cant break through these. Cant hold on to all of these alltime highs or multiyear highs. They touch them and then fall a little bit and then touch them again. Whats going on . There is a big break around. Volatility is cheap because to yield, they by doing that, they have flourished the market with a lot of there is a lot of protection around, which means every time we go up there is selling and go down there is buying. What is going to break us through we need a new bid or new market. New flows to move away interest that. Albeit also a buying environment. Earnings could be a catalyst in july. If we have a confirmation that earnings are improving, that would be big. Do you think the volume will be lower anyway . The world cup is not going help from this point of view. Are you one of those investors who looks at the world cup and sees it as an investing opportunity . Goldman sachs, u. B. S. Have released these fascinating reports which predict who is is going to be the winner and whether or not it impacts the countrys stock market if they do win or host country. Do you spend much time thinking about that kind of stuff . We have done some leg work as construction gets underway. Who benefits from it. Some of the sponsors will benefit for sure. In brazil, they have been a strong already. Since march. It is in a bull market. It is guaranteed a bull market. Well see if it continues. Who is going to win, by the way . You wont get that out of me. England. England. England wont win. What are the risks, this lack of volatility when volatility starts to pick up. What are the risks out there . Earnings i think are the one thing we do need. If you look at equities as an asset class, we were historical trends. We were at the loped of ranges. Now very normalized. Were not cheap anymore. Were not expensive but were kind of in between. For us to continue to be higher, we need earnings. The earnings in europe . Last year we had about 5 growth this this year we expect about 10 . We didnt get much of that. This is why it is so important that could renew the volume in the market. There is going to be a correction. We were going to speak earlier. Hopefully well get him on another time. Forecasting a correction in the u. S. Markets. Are you one of those that say it has been so long since we have seen a decline of 10 in the u. S. Stock market that one is due. It is just going to be a matter of time. That would not be a basic scenario. If you look at what low volatility brings you. It brings you more low volatile tifment from this point of view, we dont feel the position is extreme. The market is is not overbought. They are in the market. As long as the earnings are ok, to go back to this just about earnings. Anything else . It is momentum. It is showing that we can win and we can maintain that we have seen. Big risk. Geopolitical risks things which are unforseen. Russia has died down a little bit, hasnt it . As a global impact, yes. The market has seemed to absorb it extremely well. Russia as a country and the impact it may have on international flows into the country and funding the country that could buy into the russian assets . All emerging markets have since the the wobble in the beginning of the year. It is incredible, the rebound we have seen since the earlier year wobble. The extreme positioning and the bearish rns we have seen did cre this bounce. Everything started floating better. Going forward, we expect more russia will not be one of our best picks. We think china which is very cheap are a lot more interesting. To be very casme. Well come back to this. Thanks. Global head of equity trading strategy at citigroup. Here is what else is coming up on on the move today. Chancellor osborne takes a hard line on libor. Well look at whether the world cup brings a windfall to the host country. Im mark barton in london. This is on the move streaming online, on your phone and on the mazon fire tv. Further industrial action, operating profit will fall by with the exrared previous target. Ccording to aer ling us. Shares down 2. 01 because of that profit warning. Now we got some breaking news on frances biggest bank in the last 13 minutes. One of b. N. P. Paribas coc. E. O. S is stepping down. The u. S. Had been pressuring the bank to dismiss george chodro nmp. We have details. Is this linked to the alleged sanction violations or not . Well, you have to believe it is. Because his name is being deemed, tried to be pushed out in many press reports. I mean you cant disdowntown fact that regulators are under a lot of pressure to hold individuals responsible and not just go after nameless corporate eptitys. Allow them to pay their fine and walk away no ones reputation soiled. Regulators are taken a lot of criticism with that. This gentleman himself hasnt been accused of any wrongdoing. Correct. Although they dont want to let banks walk away without someone in the high level executive suites head rolling so to speak. That is new tone that regulators are taking. It is a result of the criticisms they have taken for not making high level executives leave their post. Could we see more high level executives depart b. N. P. Paribas . Well, there has been a lot of press reports that the banking top banking regulator in new york is pushing for other departures. This is the most senior departure that he has pushed for. Is the french pressure on the u. S. Working . Of course we had obama meet with hol land just a week or so ago. The bank of france governor is putting pressure on the u. S. Over this fine which could amount to 10 billion. We dont know yet. What is happening on that front . I dont know that it is working to the effect that obama is saying prosecutors are separate from the u. S. Brooverpblg government t you have to take him at his word on that. Are very good at leaking reports to the media. They feel like they are getting pressure from people they dont want pressure to come from. Jesse westbrook joining us today. Still with us, the global head of equity trading strategy at citigroup. Where are the financials . We like them. We think they are this a sweet spot. They are going to get help from european q. E. That is going to help the assets nd that is good for the banks. U. S. Yields are coming back higher because of the pickup in the economy. The sweet spot where the assets should do better, they should make more money because of the yield curve on the u. S. Side. We debate the eck cassy of what the e. C. B. Rolled out after a week of what is your view on what the e. C. B. Has done and what will it actually achi . I think they started the clock ticking. There was a lot talking but very little action. The market was kind of waiting to see when something was going to start. We did to a large extent. Targeted liquidity. An announcement expected in september. Left the door open to do large scale asset purchases. It is not as if comparing to q. E. 1, 2, 3 in the u. S. , the situation is different. The economy is doing better. Q. E. , is it possible to the tune of what the u. S. Achieved achieved, which is 25 of g. D. P. . Not im not again, i think draghi has been incremental in his approach. We will do what we have to do. There is no need for a trillion. Kind of the what the market is expecting or hoping for. We will probably get another 200 billion. That takes you closer. It underpins the bond market and the stock market. It underpins the stock market. In essence what draghi did was to raise the e. C. B. To something that was a lot closer to the money. It is good for equity and risk assets. Back to you in a few seconds time. G. E. Big story today. Planning another round of lobbying in paris on its 17 billion offer flash flood Alston Energy assets. Siemens has been waiting in the wings. It may have a new partner in mitsubishi to bolster its bid. Lets head over to hans nichols in berlin. Just break this down for us. Mitsubishi and hitachi on one side joining with siemens. We get a good sense of just what siemens wants from alston. That is their gas tur bind the services a turbine and the services aspect of it. They would get the grid side and the steam fire plant, mostly coal. They are lobbying the government. There are meets all week. They have two top officials in paris and their argument is basically threefold. Jobs, jobs, jobs. That has always been their argument. They say they will add 1,000 jobs. They do have i 17 billion behind the figure. Behind bid. They say their bid is stronger. It will lead to a healthier company. Mr. Holland certain meeting with his ministers today. Mark . Hans, dow husband siemens fit into all of this . Well, so here is the interesting thing about what bids and what parts of the Energy Aspects and energy bids that they want. They are saying that the by partnering with mitsubishi, the grid side of it will be done from the japan sneeze size. So siemens would avoid any regulatory hurdles where they have 50 already of the high voltage transmission line. They get out of a regulatory mess but create another one. The idea of a european conglomerate. The idea that this would be a European Company that is eroded a little bit when you have two powerful partners in mitsubishi and hitachi. Im not saying it is fatal to the bid but it does change it. Thanks. Hans nichols live in berlin. 3 looking at our function. Looks at all the underlying and mergers and acquisitions activity. In europe, the value deal that has been announced this year is half a trillion. 585. 7 billion. That is doubling on the same period last year. Can it continue . People talking about the 1 trillion quarter. Yes, it can can. We have seen a lot of the m a. Backlog interest the previous years. It may look a little bit extreme. It is just that it had been a lot slower for many years. One number we looked at is what our deal is percentage of total market cap. Were on pace to be at 1. 6 for the year. T is not exuberant just yet. I guess it is the expression of the fact that corporates have a healthy have been sitting on cash. As Risk Appetite comes back, they are home run m more willing to use the cash. It is going to continue going but part of it will be allocated to m a. We talked about financials. Lets get to your other themes. Miners and other areas. Do you like the look now or not . To speak about europe and as we think of q. E. Q. E. Will be good for risk assets. Will be good for the periphery and domestic recovery. Anything linked to that in the context of europe should do better. Earnings again, it is a big driver where we think performance is going to come from. Which gives you value with earnings momentum will be a sweet spot in the market. More highs . Were at near record highs for the s p and then the dow jones. Do you think we will push through . Most likely we will push through. I think our equity Strategist Research just the targets for the end of 2015 which gives you still 20 upside. The only difference between this year and last year is it is going to be slower. Hat is good and healthy. Something which is going higher is good. It is letting investors coming in. Keeping in mind that a lot of investors have not the volumes are low. Hedge funds have degrossed. Not a lot people are making money from this. Good to chat with you. Thanks a lot. Thank you sir for joining us today. Ing up, were going to weigh investor coming up, weighing the Risk Appetite. Details next. Welcome back to move. Im mark barton in london. Sonys Television Revenue jumped the most since 2012 as demand surged for the world cup. Sony said last month, its struggling tv unit could make its first profit in more than a decade, even if it misses Sales Forecast by 16 . Aer lingus sees its operating profit 10 to 20 below last year. They say industrial action and strikes next week caused significant damage to trading. Yesterday lufftansa shares fell. 2014 has been the busiest year for i. P. O. s since 2006. The latest thing to list in london is b m retail. Shares are rallying. Joining us for more on this ruth is our News Reporter davis. How is the reception . How is it going . It is going very well. The shares up 5 . It is something. It is great for them. If you look at they just managed to stay above off a price and you see Companies Like describe having to price at the bottom of the range. B m for sale of and the private equity they are selling. This is a good story. A Lot Companies have come to market, havent they in the last year or so . Absolutely. Absolutely. And investors are for soist choice. Which means they are not taking the time or putting money into every stock that comes their way. It is a great example of this. They had to price at the bottom of the range. The private equity owners didnt sell any stake. Look at b m today. About 1 billion pounds is what they are selling. For them it is a great story. They bought a significant stake in 2012. They are exiting now at evaluations which seem attractive. Talking about exiting. This is the return to the stock market for mr. Terry leahy isnt it . It absolutely is. I was just looking at how it was trade today. It is down this year. He must be pretty happy that he is with a story like b m, their sales seem to be going great. They are not as well known not on every Street Corner as tesco but the i. P. O. Shouldnt hurt for that. The art of leaving your job is var skillful art. To many, he left at the Pacific Northwest time as tescos fortunes declined. It is a pop, isnt it . We dont like to use words like that. This year, yes. Absolutely. When you see the of the world that had these great evaluations and are trading down. More on the world cup next. Stay with us. Welcome back to move. Im mark barton at bloombergs European Headquarters in london. Lets see how things are shaping up so far. Here is a picture on the markets, as you can see the ftse down about. 10. Gains for the stoxx 600 creeping up towards those sixyear highs once again. More advanced in germany. The dax up about. 1 as well. Caroline hyde is here at the touch screen with three stocks to watch. Am indeed. I will even give you six if the character decides to open. A slight delay to stocks trading n amsterdam and paris. A Technical Glitch slowing those trades down. B m retail. E u. K. Retailer comes on the new kid on the block to the stock exchange. Trading higher, up by 5 at the mole. Home retail is falling today in the united kingdom. They sell picnic tables. The likes of pipes and garden furniture. Doing very well as the center starts to be on a roll. Profitable not doing so well. Margins are falling for both of those key stores, that home retail operates. Down almost 1 . Unilever trading up 1. 3 . A bit of a hint of m a in the u. K. Press today. The maker of Home Products is potentially being looked at by private equities to some four pounds per share. It could be being eyed up for 40 pounds a share. Could it go any higher . Mark, back to you. France still not trading. Thanks, caroline. These are the top headlines today. A breakway, way from al qaeda is the ing calfturing birthplace of saddam hussein. The i. M. F. Is sounding the alarm about the globaling market. The group said policy makers must take more steps to sprept another property crash. The i. M. F. s latest report shows housing prices are well above their historical average in many places. We have breaking news on frances biggest bank in the last hour. C. O. O. Is. P. Paribas stepping down. George coursel. It maces a possible fine of 10 billion. Lets head our attention to biggest sporting event on the planet. The 2014 world cup kicks off in brazil today. The host country faces significant challenges. Om gibson reports. Back in 2007, when brazil was awarded the 2014 cup, the country was enjoying a period of rapid economic growth, but getting ready for the finals hasnt been easy. The task of building and remodeling 12 stadiums wasnt as daunting as it has now become. Only three of the 12 have been completed on time the arena that hosts the opening games still has work to do until the bitter end. Brazilian public protested demanding hospitals and schools over football stadiums. It cost 33 more than previous world cup in south africa. There are Major Concerns for the afety of the worlds fans. In 2013, brazil was the nation with the most debt caused by football violence deaths caused by football violence and every year there are 20 times more murders in brazil than there are in the u. K. And five times more than in the u. S. They will monitor crowds while robots will be deployed by the brazilian police. Despite much of the negativity, brazil is odds on to lift the trophy. Goldman sachs is so confident, the Investment Bank suggests buying brazilian stocks. Such is the boost expected to lolekity markets. Staying on the world cup, a win on the field may be a win on the markets. That is according to goldman chs international chief strategist, peter oppenheimer. There seems to be some kind of sentencement boost that you get. Doesnt last that long. Probably around 34 weeks. Virtually every time going back over the last three or four decades, the country that has won has had a rally relative to the rst of the world market. Joined by the chief exist at u. B. S. Ryan is here as well. You have been doing this since 2006. You correctly predicted that italy would win that year. So congratulations to you for that. Many didnt. Ou also write that you were also right that spain won it four years ago. How does your model differ from other banks . The fact of explaining how a country will win the world cup are usually the same. It is the objective strength of the team. Past performances which really matters and whether the team is a host country or not. If it is on a latin American Continent or europe. This world cup, brazil, you agree with goldman that brazil is going to win. Goldman says that is why you you should buy brazil effectively. They say on a onemonth horizon in dollar terms, the stock market of the victor, the winning team in the cup outperforms other stock markets on average by 3. 5 . You think they are going to win but you dont think it is a buy. Xplain hole in the in Goldman Sachs logic . Im a bit more humble. I dont say i dont expect brazil to win. I just say they have the highest odds to win. They have twice as much odds as argentina which is the second favorite and then comes spain and germany, which is three times lower. That sarksde it is a shortterm view to think that the stock markets will outperform. What we have experienced in the last couple of months was basically that we have an election which will happen later the ear, and so far, incumbent president was going to be elected. Now with everything which has front of the world cup, her odds have declined slightly. This was in fact beneficial for the markets. If we go to this logic, we come to the conclusion if brazil would not win the world cup then the chance of her to get reelected would be heavily compromised and this in turn could be positive for the markets. If brazil wins the world cup, look at your model. It is going to have to win the hard way, isnt it . Youre predicting brazil final. It will have to play argentina, germany, italy and holland. All the way to win the final. That is a pretty tricky route. Youre also throwing out some curveballs by saying it has a few nemesises out there. Hasnt its . Yeah, exactly. It is not a walk in the park for brazil to win the world cup. But then, you also should notice that in some cases, france, for example, beat germany in the quarterfinal, something which could happen, brazil would meet france in the sem final and france has beaten brazil in the last three world cups that they have met together. Also another nemesis, uruguay. Everyone in brazil remembers they beat brazil and won the world cup in brazil. This is something that could also happen. That brazil could meet uruguay already in final eight. Going back to your argument that brazilian stocks would do better if brazil doesnt win. I guess friday was an example of that. You were pointing out stocks were up about 3 . Biggest gainer among major stock markets. Precisely because a poll came out showing eroding support for the president in her bid to be reelected. Even in that poll, she got 34 of the vote. The other contenders put tot got 35 . So she still wins. I dont get the argument about how, you know, we see more market reform. N the back of brazil losing. Clearly what will happen is that the mood will be very grim because a lot of people in brazil will say did we spend all of this money for this . I think then her odds are compromised. The two major contenders are more reform oriented than she is herself. This is why we think ultimately if brazil would not win the world cup, it could have a positive effect in the long run for the brazilian stock market. Very upset to see your model predicting that uruguay and italy would progress in our group, in the english group. I am of course english. The model shows the percentages of uruguay and italy and england progressing. They are quite similar, arent they . It would not be a surprise if england progressed, right . Not at all. One has to say, england has always come with really high hopes on the world cup. Until last world cup, england and spain were the two teams underperforming basically what people were hoping they would do. Quite the contrary to other teams, italy and germany usually coming not this time for germany but usually coming with a very lousy team on the world cup and going up to the final four at least. A quick question here. I got ivory coast. Not actually expecting to make any money on that bet. If a country like ivory coast wins, what does that mean for the stock market there . Presumably they are going to do pretty well on the back of that. Right . I think this would really lift the mood for some countries to win the world cup. We know in the past, we have seen some effects. Usually they dont last very long. We have seen clearly, to boost the economy, the Consumer Sentiment for some of those countries. Clearly it has an impact, at least in the short run. To win . Going what is your own view . Your personal view . I would obviously go for switzerland because this is my home country. But the chances are not very high, are they . They are better than ivory coast. They are a little bit better than ivory coast but they are in a very tight group. They have france the their group. If they manage to go in the next round, they will either face argentina, which i think this will be the end or they might face a country which is a little bit less difficult. They could go to the quarterfinals but beyond that, it would be a surprise. Thanks. The english manager did once ake switzerland to the world good luck switzerland. Thanks. The chief economist and mr. Ivory coast. The smart money is still on ivory coast. Right. After the break, were going to keep it on the world cup and take a look at some of brazils wealthiest. Brazilionaires. The Largest Construction Company in latin america and one behind many of the world cup stadiums. They are among the biggest contributors and have come under fire for the 665 million in subsidized state loans to build the arenas. For a closer look, im joined by bloombergs brazilonaires editor. Who is at the center of this fortune controversy . Basically two billionaires who have very, very close tice to one another and the government itself. Roberto is 92 years old. The patriarch of the Largest Construction Company and a protege of him back in the 1970s who owns o. A. S. , also a very large construction company. How did they make their fortunes . Perez inherited a very Indebted Company from his father after world war ii and built it if there. These guys were handed contracts to build road, infrastructure, train tracks and that sort of thing. A much newer story. Basically talked himself into a job and really became his protege through it all. These are the ninth and 109 richest people in brazil. Oderbrecht is a family business. What do the people want them to do then . Their basic complaint is the government said 20072009, when they earned the rights for the world cup, they were not expected to spend any government money. They put almost 3 billion into building the stadiums. People are saying our housing costs are going up. You need to Fund Education and health care. The country is in trouble. Why are we spending all of this money to enrich these already rich people . That is the big protest. They want some of this money funneled back into social programs. Im asking everyone. You to answer the question. Who is going to win . Hi heart tells me go with the u. S. That is not going to happen. Im going to go with italy. They are in englands group. I wouldnt mind if england and italy went through. Now world cup isnt the only big sporting event today. The u. S. Open begins as well. Ahead of the tournament, i sat down with one of the greatest golfers to ever live. Gary player. I asked him about what separates a good player from a superstar. The swing is not the thing. What is the thing . Mind is the thing. There are only about 12 supersisters that have ever lived. In the entire history, what is it that makes you a superstar . Everybody has an opinion. On genetics. I have studied genetics. Anytime the terror bred racehorse program. You cannot describe it. It is the thing called it. Everybody likes to think that it is just something that you are loaned that works under pressure. You have to have something that works under pressure. Good nerves. You can go through the whole thing. Courage, patience, dedication, application, fitness. T is never you are loaned it. Nothing is on a permanent basis. Is that talents over people often say, there is some cricketters. People used to say there is gooch and gower. Gooch got more runs in the end. Natural talent. Gooch got there with hard work. Gower, the natural talent people admire more. I think Winston Churchhill said the height that great men reached and kept was never by sudden flight. While your opponent was sleeping, he was toiling in the night. Thats what did. I had to outwork everybody else. I pulled vijay singhs leg the other night at the masters. You hit a lot of balls. Not as many as i have. If you live as long as i have, youll hit as many. You have to get to this age. The legend that is gary player. He won the u. S. Open almost 50 years ago. 1965. We won it to complete the grand slam. One of only five men to have achieved that feat. The pulse is coming up at the top of the hour. Olivia is with us. What have we got in store . Im sorry i feel a bit sorry for you. We are going walltowall on your favorite topic. We are talking about the world cup of course. The tournament kicking off today. The country has spent 11 billion getting ready for it. Is all that money actually worth it . We are going to be putting that question to a senior latin american from i. M. S. Plus we are going to be talking tech. Google Just Launched in berlin. Tech hub for europe. And then halo comes on. They will be launching executive car service. What does this mean for the competition landscape . Uber says they will be offering black cab services. All of that coming up on the pulse. As we head to break, were going to leave you with a picture of this stock on the movie. Iliad. Recovering from yeesd losses. Up nearly 5 . Stay with us. George osborne has a message for currency riggers. They are planning to extend the w to criminalize libor rigging. Lets bring in caroline hyde. This is the big speech tonight . It is. Every year he speaks toing industry. Today it is watch out if youre a manipulator. If you manipulate foreign exchange. If youre a trader in commodities and potentially manipulated the gold price or fixed income. No longer will jail terms be just for those who created libor and underpins some 300 trillion worth of contracts, student loans, whether they be mortgages. 6 have been dished out to nine different banks. George osborne wants to get bigger and more wholehearted. If you manipulated foreign lihange or gold, you too able. This is not just the bankers. This is to the people at home. When you mention libor to most people, they go what . Exactly. He tries to put it in common language. He said look. Markets here set the Interest Rates for peoples mortgages. This affects your mortgage cost. Your everyday Outgoing Exchange rates for exports and our holidays. He brings it back to your own holiday and Commodity Prices for the good that you buy. Say there is wheat in your bread that you buy at the store. This is what he is trying to get. Get people onboard showing that he is tough on the financial markets. He is carving his own path as well, isnt he . Trying to differentiate the u. K. From the e. U. This is another general election ploy. We have penal vote here of course, a referendum we are being promised on whether the u. K. Stays in or out over the e. U. We are going to make regulation here ourselves. U. K. Is going into loan. It is not going adopt e. U. Market manipulation or abuse. Were going to have our own stronger regulation. U. K. Specific. They say it is flexibility. Who is going to win the world cup, by the way . I have drawn portugal. Thanks, caroline. Stay with bloomberg television. Olivia sterns is back with the pulse. She will kick it off with the Economic Impact of the world cup in brazil. Stay with us. Calling it quits. Nps top executives will step down. The u. S. Seeks 10 billion from the bank for sanctioned violations. Osborne cracks down. Fix currency rates will face a jail. The world cup kicks off in brazil today but after delays and demonstrations is the nation ready . Good morning, and welcome to the pulse live from