Of the loss is achieved earlier in the week. Equity markets are rising ever startghtly on the first of this friday trade. European numbers are expected to show a negative number. In france, Consumer Spending has actually dropped. It actually rose less than the market estimated. We are going to see how the day carries on. In germany, we are going to get a scoop of data in terms of the Consumer Price index. That is going to play into the overall thinking over at the European Central bank. In the united kingdom, house prices slow for the first time in five months. That is according to home track. Bit of a be a little welcome relief for mark carney. I am talking the nike effect here. Ise numbers from nike carrying through also into adidas. Quoted, butrately virtually unchanged. Retail, we have tesco, agm today. Agm in terms of strategy and what is going on. Dollaryen is where you are seeing a lot of the action. Selling of the dollar overnight. This is a threat a strengthening of the yen. Overall, we are seeing this momentum in dollar. The market has been so long dollar. If you look at the ying and yang of what is going on in the dollar trade, on the lefthand side, you have Consumer Spending in coming in lower than estimated. On the right side, you have mr. , part of the fed, saying the first hike could come in march of 2015. Is that really a shot . You are seeing a bit of movement on dollaryen. Barclays has a note out in terms of their view on the dollar. They have a very strong view of the dollar. They say it is time to short these rallies in the euro and sterling. You want to look towards the conviction on being short the euro. Lets get back to hans nichols at the eu summit in brussels. Ukraine and eu are set to sign a trade agreement. It was disagreements over this accord that began the unrest in ukraine back in november. Real significance. It is an important moment. Two important moments today. One is the signing of this document that includes ukraine, georgia, and moldova. A toronto night, the ceasefire between the ukrainian authorities and the rebels, that is set to expire. It has not been much of a ceasefire. Angela merkel acknowledged this last night, when conservative leaders were meeting outside of brussels. To idea is, what do you do give the political process some breathing space to have an agreement. There is a lot of talk on sanctions this morning. The finnish Prime Minister met with the ukrainian Prime Minister this morning. They want to keep the pressure up on the russians. At the same time, the italians are expected to be blocking additional sanctions. It looks like the russian market might be bracing, anticipating a little bit forced options. It was down yesterday. The day before, down 2. 4 . That is not the only story that we are watching in brussels. The are keeping our eye on the selection of a new European Commission president. Give us the latest. David cameron saying that he will stick to his principles jun morning on a junker cker nomination. David cameron is digging in. It is quite clear that he wants to continue his opposition, continue with the principle of opposing decision in brussels. Last night, Angela Merkel appeared to want to give cameron a little bit of room to climb down. Drama ifk it is not the vote is not concordant. With regard to content, we have to find as much Common Ground as possible on substantial issues. I think we can find good compromises with great written and extend our hands to them. But it is drama that it looks like we will get this morning. We will see just what those meetings come out of them and how firm and deeply the other side digs in. And will there be any give on policy . Will there be any policy shifts to make it more colin will for David Cameron . Thank you very much. Moreng us now for perspective on this and the Broader Market themes of the day , the author of a new book, investing in fear. Thank you for coming in. A bit of drama and fear seemed to be playing into this mornings show. Cameronlk about david and whether he is closer not close to the market thinking. What happens in the parliament is less important than what happens in the central bank. What mario draghi said recently is indicative on the deposit rate and i think it will have a bigger effect on markets. It could have an impact if this whole debate around the European Commission president , which the u. K. Prime minister, David Cameron, is going out on a limb over, if that blows into u. K. Remains, the and it could have a bigger impact the potentially, i think. I think there are other things going on with inflation in the United States. We think there could be an inflation shock. I think that is what could really shift markets and wake markets up. Volatility you have written about volatility in your recent book. Really, tell me, will we see volatility returning to the markets this year . What will cause it to happen is some new news. There is no new information. All of the Central Banks are still very accommodative. The fed is hinting it might hike rates. What they are really shifting is we have an unexpected hike from the fed. We will talk more about that in our next discussion. We will take a short break on on the move. We will delve further into barclays dark pools. What the newest scandal means for Anthony Jenkins. Executive of portugals biggest Construction Company as he tests investor appetite or africa. And it is a battle of the brands in football. This is on the move, streaming online, on your phone, on apple tv, and apple fire tv. Here is a stock that is on the ,ove this morning, world line that makes its public debut today. It is an Electronic Payments. Ompany that stock is down 1. 8 right now. A Bloomberg News reporter joins us with the story. Remind us why there is this big selloff. Atos said that they wanted to either do an ipo or sell this because they are focusing more on cloud computing. They thought that this was a great time to go to the markets. If you look at the numbers in 2006, there are a lot of listed companies in markets like france, germany, are spinning off because they feel like the Public Markets are open now. This one priced at the bottom of the range and it is falling in 11 minutes of trade. Which rings me to the next point. Because it is so busy and investors have so many choices. People that we speak to say that the buyers discount is coming back. Albanys are not getting the kind of valuations that they want. Which is why you see it priced at the bottom of the range. When they come to start trading, you are still seeing that the client. What is the Business Case for this one . What is appealing about this particular company . It is not just banks or retailers. Like you said, their clients are mcdonalds, the bank of china, bnp paribas. Other customers are coming online for Electronic Payments. This market is really expanding. A want to be europes Largest Company in Electronic Payments and they want to spend one billion euros on acquisitions. You might see them coming back to the market over the next couple of months. It is a very fragmented market. Overall . T the market sincehas been the busiest 2006, 2007. Every company that feels like they have a Business Case is trying to go public. Just last night, we had another company say that they are not going to do their ipo. Comings a lot of supply in, not so much demand. Thank you very much. Lets bring you into the conversation on the theme of ipos. People talk about ipos and the data says there has been a lot of them. They also talk about indigestion and markets feeling like quite a lot of this. On this very show, i forecasted m a would pick up and it certainly has. The magic sauce that was mixing was Business Confidence. Another comp consequence of greater Business Confidence would be an increase in. In capex. Spend seeing companies more on their infrastructure. It will benefit some sectors and it will hurt others. We have had years of pentup demand, companies that would have listed but did not have the time. Confidence, ithe seems, in the last six months or so. Markets have rewarded the ones that have cut their expenditure the most. That could be set to turn around. Point intting to the capacity, about 80 , when we will see a greater increase in capex. We have a tradable basket that you can buy in the United States based on that, but also one in europe. Tell me about this inflation shock that we might get in the u. S. Open these need to be aware of that because it can throw their listing plans offkilter. Are basing thing we it on is our surprise index. It went down for two years. Then we look at the Small Business survey and that is showing that it is harder to hide people. If there is a massive core of people that are qualified for work, you would not expect that. I think we might see Wage Inflation for the broader index. Obviously, that would affect fed policy. Others are trying to work out why we have seen this pickup in employment. Unemployment rates coming down, but not enough Wage Inflation. If you look at the last cbi print in the United States, the biggest figure was. 4 . If you look at the pc number, that is accelerating. We may see the fed turnaround 180 degrees. I think that can shock markets. When will that happen . Sooner than q2 next year. Lets get back to the ipo theme. New details about alibabas upcoming listing, including its exchange of course. Chen joins us with the details. Bring us up to speed. Alibaba has finally chosen its listing venue. The New York Stock Exchange has gained the upper hand this time. The company has chosen baba as its ticker because of the company name and the repetition for the chinese word eight, which is auspicious because it rhymes with the chinese word for prosperity. In 2007, they also chose 1688 as the ticker name. People are expecting alibaba to list as early as august. Some say august 8, but that could be postponed to september due to market uncertainty. What does this mean for the exchange is involved . There was a rivalry going on for this particular offering. A blow to the nasdaq because they already lost 22 tech ipos to the New York Stock Exchange last year. If you look at the nasdaq, this was an exchange that built its reputation on hosting tech ipos in the 1980s and 1990s. It seems that they are losing some of their ad and that the New York Stock Exchange is chipping away at its lead. Ever since the facebook ipo botch. For a company like alibaba, they naturally have a huge influence on these exchanges, even in hong kong. After the hong kong Stock Exchange pass on the opportunity to list alibaba, the government sent out a proposal saying that the city should revisit its one share, one vote structure to house ipos from all over the world. Whether that will happen still depends, but hong kong has not managed to host an ipo over 4 million u. S. Dollars ever since 2010. Ramin stays with us. Lets talk a little bit about the theme of your book read of your book. What you are suggesting is that people should invest in volatility. On a day when many Retail Investors might be holding their hands up and saying, dark pools, what happened to the investing world thomas and we really explain to Retail Investors that investing in all it really is something they have the appetite for . That thing is, they are already doing it. In the United States, there are etf that tracks volatility. Investors are buying vix. The volatility index that is most often quoted. If you buy this thing, you are guaranteed to lose about 80 of your money every year unless a crisis happens. Etfs that i am recommending people buy these vix indices. They insure you against shocks in the market. Investing in volatility might be a hard sell at a time when there is not much volatility around anything at the moment. How do you persuade people to buy in . Actually, you can sell volatility. If the vix is below 27 , i would sell volatility. If you want to go along, you go along vxx. A 27 trigger. If it is above that, you go higher. Why not spend time trying to work out whether the alibaba Business Model has legs . Or go and visit some companies in tech city and work out whether you think they have potential . Why not do that rather than buying a derivative . In youru have it portfolio longterm, it can be a very good hedge read what is nice about vix, it always comes back to 20 . You can guarantee it. What is going to happen with alibaba . I do not know. Coming up, we look at the damage facing barclays. Dives took a dark pool yesterday. Welcome back to on the move. The is one stock that is on move, imagination technologies. Shares in this company being listed. Intel raising 51. 20 5 Million Pounds from the placing of these sales. Intel now has about 13. 4 million imagination sales. Imagination technologies is a company that develops and andnses software intellectual robbery e. Barclays is back in the spotlight today. It trades more or less flat this morning after 2. 5 billion pounds was wiped from its market capitalization yesterday in the wake of a new York Attorney general alleging deceit in its dark pools business. Manus cranny is here with more. Bring us up to speed on the latest. The allegations have consequences. We understand the number of institutions are pulling their businesses. What caught my eye is the people who have not been doing business with barclays. Jp morgan, goldman sachs, morgan stanley. Eric schneiderman went to the heart of the lawsuit on bloomberg. One of the things barclays was doing was changing the data, misleading clients about how many of the trades were actually filled in barclays own dark pool. This elaborate propaganda saying they filled whatever is best for the client, the best price, the best phil. Fill. Of all the trades were filled in barclays dark pool. What was interesting about the conversation as it went on, actions by barclays will govern the size of the fine food in other words, cooperation. This comes down to Anthony Jenkins challenge. Relationships take a long time to build in all businesses. You break a relationship, you break the trust. This is part of the business that he has been favoring. One of the Biggest Challenges that jenkins had was to say that lets focus on equities. Revenue down 5 in the first quarter. This is reputational damage that and their dark pool business do not need. Wantis a ceo that said i to live by respect, integrity, services, excellence, stewardship. Those were the five words of jenkins. He has been in the seat since late 2012. He cannot really claim that this is a part of the business, if it was such a good part of the business, that he did not know what was going on in it. Has it just taken him so long to get to grips with it . This is a huge issue for jenkins in terms of culture. And these are very specific allegations leveled at barclays. The european Banking Sector had a role in dark pools over the u. S. We have credit suisse, barclays, ubs at the top. American banks nearly as active in dark pools. You do sense that there is more regulation coming about this particular part of the business. One of the arguments from the euronext, youe, do not want to go to dark pools. There is not enough transparency or regulation. About it. Nes there are pros and cons of having dark pools. The quiddity is the number one priority. More regulation and more transparency could be the next steps. Well, calles, as highfrequency trading. We have had this relation in money in what kind of dark pools at the moment. Thank you very much. Score withnike sales investors after a better than estimated quarter. When it comes to the world cup, who will leave brazil with a win . On the move you are watching. You can find me on twitter. Welcome back to on the move. There 30 minutes into trading day. Lets see how things are shaping up. Here is a picture across the european debt to the markets. Things are looking a little bit more positive the last time we checked in. These are the Bloomberg Top headlines this hour. A ceasefire called by ukraines government in its fight against rebels in the east expired this morning. European leaders are meeting president Petro Poroshenko and russell in brussels to discuss possible new sanctions against russia. Ukraine is also signing a Free Trade Agreement with european leaders. Japans Consumer Prices climbed at the fastest pace in 32 years. Koran potion rose in may from a year ago. Meanwhile, Household Spending dropped 8 on the year. The bank of japan said that this will the price gain probably slow in the coming months before picking up again. Askedesident barack obama u. S. Lawmakers to approve 500 million to arm and train moderate Syrian Rebels fighting bashar alassads regime. The administration is seeking to rein in the extremists, whose fighters spilled across the Syrian Border to iraq. It would also aid neighboring countries jordan, lebanon, turkey, and iraq. Eu leaders meet in brussels today and at the top of their agenda is the next European Commission president. U. K. Prime minister David Cameron has waged a war against jeanclaude junckers appointment. Joining us now to discuss this is howard sykes. Welcome to the program. Thank you very much for joining us. David cameron confirming today that he is going to stick to his principles over the juncker question of his appointment. Has he picked the right fight . I do not think he has picked it. It has picked him. In some ways, i think that where he stands is absolutely correct. It is nonsense to have a vote on eu membership, which it is clear a majority of people want. Without trying to address the the eu ishat presenting to the british economy. He needs to be able to have someone sensible to be able to negotiate with. Uncker ends up getting the job, there is not going to be skilled for a sensible discussion. The trouble with David Cameron is that this disagreement goes right to the heart of what he is trying to sell to the british people. He wants there to be a referendum, but he wants us to stay in a reformed europe. Onwould argue, relies change. It is difficult to get his view of change in europe. Absolutely right. , ifimplications are that and when a referendum is held and if nothing has happened, then i think cameron would have to argue that we should withdraw. Businessperson, you have called for a stay in europe, but a reformed europe. If you had to choose between europe as it is now and leaving, what do you think you and the people who you have spoken to about this would vote for . If we cannot get change, we are better off out and in. Than in. Servicesy financial hat, the threat to that is growing. It is already considerably hanford hampered by imposed eu regulation. And our business is international the it is international more than it is here. Looking more broadly than the finance industry, recent data out from the chief secretary to the treasury saying that 3. 3 million jobs would be at risk in the u. K. Should the u. K. Leave europe. Treasury statistics. That figure has been trotted out quite a lot. What it is about is how much we export to the eu and the eu is about 30 of our exports. The eul issue is that exports nearly twice as much to us as we do to them. Where, withinip , to allow free trade to continue, has to be the logical resolution. The rest of the world would suffer if such an agreement was not reached. I think that is a slightly worn out and halfbaked argument because it does not think about the total picture. There might be businesses that would decide to go to other parts of europe if the u. K. Were to leave. I think that it is extremely unlikely, if we are part of the customs union, that there is u. K. Ande between the europe. And that is what it hinges on. It seems that that is inevitable. Although they do it by different roads, norway has an agreement with us, and we would need to contribute towards the eu budget. I think one has to accept that. And then having even less ability to sway the agenda of the eu because you would be on the outside. It would not really affect us. Coming back to my narrow platform of Financial Services, we need to regulate the industry ourselves. Again, most of the industry is international and not european. Lets talk about the Financial Services industry then. The u. K. Has a large number of complaints to the European Court of justice over eu regulations. Some of those have been lost and some of those are still in train. Do you sense that that you cj that the ecj is not going to see the same way about these issues . In a way, i do. Financial transaction tax is deferred. The actual legal argument is a powerful it would be like the andmposing things on france germany that damaged its car industry and there is an agreement that you should not do things like that. So we will see. Without the is treaty of lisbon smuggled, us relating our Financial Services industry. Europe has a different industry. It is not international. And sees things differently. We have already had a great slough of regulations which damaged the industry. The economic finance committee, all of this stuff goes first through us to advise and instruct government what to do about it. I have to say that europhiles eurosceptics and up agreeing. Are clays and the headlines about their dark pools, all over the Financial News of late. As ana concern for you investor, somebody with a great deal of experience . Are you worried about things going off exchange . It is for very sophisticated individuals and it is buyer beware. What i think it more broadly illustrates is that governments in the last 20 years made a terrible mistake in allowing a cartel to develop in the banking industry. Thingsu get cartels, bad always tend to happen. Do you think we will have more regulation . Probably yes. But the real answer is more competitive banking. Thank you for joining us today. Turning now to sport. Nike reported numbers last night as the world cup battle in brazil continues. The company is hoping its sponsorship of key teams and layers will continue to drive growth. Is our European Business correspondent, caroline hyde. Lets kickoff with the numbers first. Nike, the biggest sportswear maker in the world, 17 market share, keeps on winning. The are seeing profit of more than expected. Sales climbing some 11 . Women are driving that demand, as our runners. Theou are breaking it down, u. S. , china, this is where they really did over and above where analysts have been expecting. Japan and emerging markets were a little bit worse because of the currency. Clearly, the future is looking bright, particularly for future orders. Western europe looks set to go 22 . It has really upped the pressure on adidas in football. It out to beting the biggest brand in the sport. The world cup obviously putting a spotlight on these two in that regard. If you look at the numbers saw. 2 , morey than 20 growth in their football business. Worth 2. 3 billion. That is only . 5 billion less than adidas. Nike only started taking football seriously about 20 years ago. A adidas has been sponsoring fifa since 1970. When you stack up sponsorships, they are really in the end. Look at the teams that they have sponsored that are through to the next round. It is equal. Nike started with 10 out of 32 and pushes through with five. Brazil, france, netherlands, usa. Adidas also has five many. Is, for adidas, they scored a bit of an own goal when it comes to individual players. Yes, nike has lost a few of their key cards, wayne rooney, rinaldo ronaldo. But there was a certain luis backed and heidas has been banned internationally for nine games after biting another player. Also unable to play in the future liverpool games. 2010 andnned back in last year for biting players. Clearly, they have a problem in their portfolio players. Nike certainly winning the day there. Social media fax. Nike is dominating in that space as well. When it comes to twitter and facebook, 37 million facebook likes for nike. Above, almost double what adidas has in terms of facebook likes. In terms of twitter, nike leads the charge. Quadruple the amount of twitter followers compared to adidas. In many ways, nike winning, just not quite yet with the Revenue Streams in football. Thank you very much. Caroline mentioned portugal going out at the world cup. Coming up, it is the nations single biggest gainer year after year. Him about his principal success in africa. This is on the move. Welcome back to the program. It has been a tough week for portugals football team, but a great year for the countrys largest Construction Company. That is motaengil. It is the biggest gainer among portuguese stocks among that period. Joining us for an inclusive interview is the motaengil ceo. Thank you for coming to talk to us. Lets talk about your expansion plans, in particular, africa. Is reason you are in london you are holding a meeting with investors who might be interested in buying into your african business. We are a multinational company. Our core business is construction. We are also very active in waste management, Water Treatment and supply. Africa, we have huge experience because the company was founded in africa in 1946. We have almost 70 years of working in africa. So we have huge experience routing there. Working there. How do you deal with the problem that many European Businesses that have been in africa for a long time are faced angola,to mark mozambique, how do you get away from that towards the rest of the continent more broadly . We have a huge resource, equipment, manpower, very highly skilled engineers. And we are training people there. In africa, it is important to have a lot of resources to be near the client. And so we have a huge experience to do that. Out there in the other countries, we have a huge experience in mulally malawi. We are now starting work in uganda. Tanzania. Planning to list the african part of the business separately and you are listing it on the london Stock Exchange. What type of investors are going to invest . Are they people who want exposure to the african growth story, the urbanization theme, the rise of the middle class . Or are they portuguese investors keen on investing in this business . Those who are looking for exposure to africa because they believe the growth to africa is now growing a lot. I think it is already the continent of the present. The population is racing. And increasing the middle class, educated middle class. Sector,nk the mining , areil and gas sector demanding a lot of infrastructure. It is very important to be there and to build with this huge demand. What do you think this business is going to be worth . Some analysts are saying it could be worth 1. 5 billion euros. What do you think question mark let the market decide it. You have decided to come to london. While list in london for this business . Because i think a lot of investors want to be exposed to africa here. That formportant the company to be here. Thank you very much for joining us. Great to meet you. The ceo of motaengil. The pulse is coming up at top of the r. B. I. Olivia sterns joins us with a look at what is coming up on the program. First up, we are going to have a former member of the bank of englands Monetary Policy committee. He will be joining us to break down what we heard from carney yesterday in a Financial Stability report. He will tell us why he thinks we will see a rate hike later on this year and why he thinks that these new tools that carney unveiled will not have much of an impact. And we are going to go back to brussels to have more on the eu summit. The key question there is, could any of these fiscal reforms that leaders are supposed to be debating even now, during breakfast a are probably done with breakfast does any of that make a European Commission more palatable for cameron . We will talk about that and more out of brussels. Finally, we are going to go dig on that suarez bite. It is all anyone is talking about. We have seen a host of advertisers capitalizing on the bite. Mcdonalds, blistering, even johnson and johnson coming out with as noted on this suarez bite. Obviously, it has left adidas with a bad taste in their mouth, you could say. He are breaking down their sponsorship role in the world cup, the battle between adidas and world cup and nike and how nike is gaining a leg up in football. A whole host of funds. Of puns. We are not going to go there. But luis suarez leading off more than he could chew. Back in a few moments. Israel does not have much water and it has even less snow, but it has become a world leader in making both. Elliott gotkine visited the worlds biggest Desalination Plant for the story. Is the size of 14 football pitches. Extracting Drinking Water from seawater to fill 152 olympic size swimming pools. Thathuge amount of water supply the needs for 2. 5 Million People in israel. I. D. E. , which builds Desalination Plants. Without this plant, you would not be able to finish this summer. At its core are these massive membranes. Salt, but thathe is not all. These are the pretreatment pools, where the floating elements are separated from seawater, which goes onto the desalination process. It is also an excellent spot to give you a sense of the scale of this enormous plant. Thirst for water rose, Desalination Plants are set to become more common. Could by 2018, it could rise to 15 billion. In boston, the best desalination opportunities in industry and says its technology is leagues ahead. We work at much higher efficiency. We greatly reduce the energy consumption. E. Says its technology speaks for itself with an alpine snow maker. It was not economical, but we were left with this ability to make snow. Skis beyond the ski slopes, they have a number of projects in the pipeline. , it will finally start in california next year. Here are some companies that are on the move this morning. Authorities may announce a plea deal with bnp paribas this monday according to the new york times. The french bank is set to plead guilty to criminal charges and pay a nearly 9 billion penalty. Yesterday, bloomberg reported that the bank may greet to curb some operations for as much as a year. Unicredit raised more than 670 Million Euros in its publics share sale of its Online Broker unit. Unicredit sold a 13 stake at the lower end of the range or the offering. The ipo is part of their fiveyear plan, which includes targeting 2 billion euros of net income this year. And shares of the and indian drugmaker surged to a 13month high after winning u. S. Approval. The ruling comes two years after the 3. 5 billion medication lost its patent protection. Some pharmaceuticals agreed to purchase ranbaxy. Stay with bloomberg television. Guy johnson and Olivia Sterns are back with the pulse. That is next. Andrew sentence joins us for a conversation about u. K. Housing and the economy. A collision course with the kremlin. Ukraine provokes russia by signing a trade treaty with the eu. Camerons crusade. Britains Prime Minister digs in his heels as european ministers set to confirm juncker. Thend barclays clients shun private Trading Platform as the bank ceo promises an urgent investigation. Good morning, everybody. You are watching the pulse. We are here in