Rise. Can renziccommodation get from its Northern Partners . It will play in interesting way. To be a bailout, that seems to be back on the agenda. The chamber of commerce warning of the rate hike. The overall recovery and mr. N oona said less of his all of the debt. Matteo renzi looking for of theal accord at 2 meeting. Several companies definitely on our radar. Caroline will show you through the numbers. 12 quarterly drops. Air will be in focus. Klm is a profit warning. Depreciation. Billion and they said they would earn 2. 5 billion. They are facing competition. That is the critical issue from key players. Have probablyhey have a settlement on the agenda. Nonprosecution agreement for sanctions trading. It tells why useful half 1 billion. About 9 billion from a bnp. They are levied around the of eachf money sanction. That is the critical point. That is usually the difference between parabens and commerzbank. Flat. Ms of currency back to you. We will keep the equity markets. U. S. Coming off a record highs. We have lucy mcdonald. Are you comfortable with where we are . Are we doing now . We recently have taken a bit of risk off the table. We have most of what we expect this year. What had this very good, strong move. The drivers are here. They are not going to be as strong in the future. Earnings recovery. And also a revaluation. It is difficult to see it quite as strong. Lets talk geography. I spent time in the states. Every single Equity Investor i spoke with said the same, we are overweight europe. Because we are going to get a qe from the ecb. Will we really get qe from the ecb . No, we are not expecting any day soon unless there is a crisis. That is the way they are thinking about it. Emergency. They would rather avoid using it. Tois very effective stimulate the economy. They think that europe is slightly different in financing. A wealth of qe in the United States. They are not convinced. Therefore, they are not rushing especially in this environment. What is the risk . The fixed income market, highyield calms down. It is incredibly narrow. Its the risk in the fix in, is it the biggest risk . Biggest upset for markets will be a spike. Areas where you would least expect them not to the areas you want to be particularly careful and that will be credit. When we look at the spike, is it in debt or sovereign debt . Of the treasury janetg, at some point, yellen needs to invite some into the market and stop saying less stay low forever. Yeah, we will hear from the fed on wednesday and here theyre thinking. Moving. Still and the environment is still quite unclear. Think they will continue how the market is feeling any of these statements or data is a risk for some when you look at the jobs report last thursday, it was not a stellar jobs report. They still side with janet yellen . Going anywhere. She wants 4 . Do we carry on looking at the labor market or looking at wages . That are looking at everything. Housing as well. And the financial environment is also important. They is going to be measured unless there is a financial upset which means they will stop. And they passed higher Interest Rate and it is going to be relatively slow one. However, the market is likely to discount. Ares there a risk they already behind the curve and inflation creeps up and wages can be lagging . Inflation is already there and the longer they wait, maybe they cannot deliver. Is that a risk . Yes. We think its a risk that would like to take. Leave it there. Lucy stays with us. What else is coming up. Itcking down on commerzbank, may be the next of facing sanctions. Feelings of hate. Under pressure as the retail giant post a drop in clothing sales. I do not know the last time i s except to buy food. Maybe that is the problem. The gold fix. Why the industry is calling for change and a reminder you can follow me on twitter. There it is. Follow me on twitter. The markets. Welcome back. I am jonathan ferro. This is on the move. We are on everything. Commerzbank is the big one we are watching today. It may be the next in line to face alleged u. S. Sanctions according to a person familiar with the matter. We are joined by hans nichols from berlin. Put this into perspective. 500 million, is it a lot . You can make the case that a pales in comparison to the 5 billion and that bnp was fine. Therell not be a felony conviction associated with commerzbank case. It is all in the beginning phases. The New York Times wrote it. My initial thought was commerzbank, they are next. The question remains, what does it do to Deutsche Bank . You look at the provisions. They have 1. 2 billion dollars set aside for little costs. A cushion. Have Deutsche Bank has a big provisions but we do not know what their total fine will be if indeed it is going to be examined next and it is on the sanctions. So many probes. It is not sanctions. Not a myanmar are libya. We still have libel and affects manipulation to go through. The prospect of another 500 million in u. S. Profits is great if you are a regulator of the United States. I see another fine, a big fine. I still struggle to really work out how they are common to the fine. Billion dollars for bnp. Its a volume, the amount of trade or also about working with the regulators . Allegations against Credit Suisse and bnp is they do not work with investigators. What is the case with commerzbank . I am sure the banks would love to have a central formula or complicated formula. The fact of the matter is it is not that simple in part because in the u. S. You have multiple regulators looking at this. The u. S. District attorney in regulators andnk new york state regulators. There are a lot of complicated factors. Volume is being considered. Also the level of criminality. The interesting thing about commerzbank is there are no total so far of a dismissal of senior staff or felony convictions and you saw the opposite of bmp. Numbers. Note on the there was a note to out by billiontanley him a 50 dollars is the cost they think banks want to set aside. If it is to be believed, we are in the beginning and there will be more banks. Thanks. Lucy macdonald is here. She is still here with us. We look at the Banking Sector and somebody had went toward the Banking Sector for the past couple of years. We talked about the economy. Headwind has been litigation. You look at this. Do you have you every strong stomach to invest . Yet. There is a parent to value in the sector. Exposure because of uncertainty. And there is apparent value in the sector. One valuation after another to deal with. Most uncertainty. We think we know where we are but we have a litigation coming through. Therefore, the profits as they recover, it is a claim for regulators and you do not get to see them off. It is apparent when you will get that. The return to the investors. You need to be at a high discount rate. Is it the beginning of the end . Coming month over month on month. Is there light at the and of the tunnel . We could be through some of it. It is not going to stop in a hurry. Defendersthere are no for these companies. A lot of complaints of from a french officials about overreach. Because of the transactions were conducted in dollars and the regulation in the u. S. Extends do notpe because we break any european laws and such. Where do you side with that . Should they look at a bank by bank cases . From there something french officials that there is a problem of overreach . There is a problem of uncertainty. It is not going to go away. We have seen in europe. Regulatorype, your uncertainty from country to country. That is going to continue because regulation will stay at the national level. I will stay with you and will going to tack and i want to talk about technology and i want to talk about health care. We talked about mercks acquisition. A massive premium almost three times of what it closed for on friday. What is your back for the sector sector . Or the there is a risk. However, you have to look at the the potential is for business being bought. Some of these markets that are developing, we have huge breakthroughs. But also, some of the autoimmune areas. These are enormous markets. If you buy in earlystage drug, and maybeke a very optimistic forecast. You can come with interesting valuations. That is what is going on. The Large Companies are rarely needed growth so they are happy to buy up. They have cash. It is an ideal environment for m a. Investors, what we are seeing as well. Any of the cycles go on, the excitement can get higher and the violations tended to get higher as well. Are you concerned about the tell went behind m a that we look at pfizer because of tax reasons and not strategic, industrial reasons, does it concern you . Yes. The engineering aspect. Not particularly interesting. With the pfizer deal, it was to be expected. Astra has gotten an interesting pipeline. However, the tax benefits and is so it was a dual interest. And they may very well be back. Lucy, stay with me. Unit. S exploring and i. T. The unit could be valued at more than one billion euros. Siemens is spinning off its units. An israeling developer of advertising as it goes public. The offer price is set at 227 pence per share. Secondquarter profits at samsung mrs. Analysts misses after mets. The company is forecasting a recovery. And they said it will boost results in the third quarter. Lucy, i want to talk about technology. You see will bullish. Does it concern you what came out of samsung . It is a very diverse sector. Samsung is the hardware unit. Less interest than some of the others. There are plenty of secular growth in technology and that is orine advertisers and mobile whether it is transformation. That is huge, secular growth not affected. End, very highly valued stocks at the very highly stocks will be impacted. Where you have secular growth, you do not need to worry so much about the macro environment. That is more attractive to us. And in the themes will continue. Volatile sector this year. I could name several stocks that were the worst performing this year. In the past month, then the best performing. How strong is your stomach needed to be to invest in some of these stomachs . And when i look at the likes of apple and i see, is in a tech company anymore or a retailer . But itve serious talent does not jump out at serious innovators. The volatility. There is a particular area that i mentioned which is most highly valued and will be most highly correlated with rates. That will be quite volatile. That is the same in biotech as well. And any industry. However, much of technology now is relatively mature. With a in it, you have good secular growth. Large companies are pretty much immature. With in it, you have a good secular growth. The dividends now. It is less volatile than it used to be. I think you have to pick where the growth is. Lucy, thank you very much. Lucy macdonald, investors in europe. The bmw drives the luxury car market. They said they are on track to deliver 2 million and vocals. Will be enough to keep it ah 2 million vehicles. Will it be enough to keep it ahead of competitors . Welcome to on the move. I am jonathan ferro. The bmw is what we are going to talk about. Secondquarter sales are up 7 on the year. The lesson get to hans nichols for more. This is what we want to know, how is bmw doing against the other competitors . Are winning. For bmw, that is the only thing that matters. They are up 16,000 cars. Mercedes is in last place and then audi. Here are the numbers. Audi, 869,000. Mini. Es that exclude the that itinteresting is shows bmw is staying out front but audi is closing the gap. If you look at chinas sales, audi is doing a remarkable job. Go into north to america as well where bmw is adding a second plant in mexico. Since we are both the reporters, i have a fantastic thing for us time. The number ahead of the market is moving at 0. 5 percent. We will go to china and hang outside and we need one other of differentng out dealerships and were going to have a clipper and will count to see how many wealthy chinese go in and that will give us an indication of pull is going to win this race at the end of the year. We will work on our mandarin. It will be great. I have a much better way and it will be cheaper. If you come to london, west london and go outside of manus crannys house, that will give you a look of what is selling. Moving to mexico, what is going on . You are seeing a north american demand and audi and mercedes starting plants in mexico and bmw one and a second one. They already have one in spartanburg, south carolina. Thanks very much. The gold, fixing fakes. Will breakdown the gold price and and we will breakdown the gold pricing. We are on the move. Welcome back to on the move. I am jonathan ferro. Into the trading day. Lets see how things are shaping up. 25 . Stoxx 600 down by 0. 3 news comes tomorrow, the minutes of the fomc meeting. Specific. It at the touch screen with three stocks to watch. One small in london. Mobile banking platforms to a included. Of a banks they say Revenue Growth is going 30 30 3 and its much less than they had guided. 33 and is a much less than they had guided. That is one to watch. , overcapacity, too much competition. Earnings are going to drop a cause of cargo and prices. You have emirate. You have qatar. Prices are falling. Compass group is all. His loses no irony Compass Group is up. It is a big Catering Company and do a lot in europe. They are basically cocktails. Still under the price of the market. Thanks very much. We will bring you the top headlines from European Finance ministers are meeting in muscles , boosting the use of the our meeting in brussels, boosting. Hey use [indiscernible] it is on a repeat every single year. Bulgarias finance minister said they have no plans to sell bonds before International Investors and not until 2016. The poorest member in the worst financial crisis ever in recent weeks, the ball variance lined up and the bulgarians lined up to withdraw from the largest banks. Ukraine government has accused prorussian rebels of the soaring several buildings. Territory from rebels. Leaders have said sanctions would be as soon as today. For now, i wanted to look at world gold council. They are trying to look for a new way to price the commodity. Their plan to change the way silver is price. We have been finding out more. Gold. We know the shiny, metal precious. How precious is it . Was a century, the benchmark price is set twice a day every business day by a panel of banks in london. President are prepared to buy and sell at until date reach a consensus. That is called the gold fixed. The libel benchmark was set in a similar way. Concerned the is price can be manipulated. Our lives has been fined for leading 1 barclays has been fined for leading one of his traders manipulate the price. Just for banks decided the benchmark price of gold. It is not a unique problem. This benchmark is due to bite setdust and only 2 banks the price after Deutsche Bank pulled out. Now, silver. They needed changes to how the price is fixed. The new prices will probably be based on data from electronic trading and with a market worth 18 trillion every year, a lot is riding on it. Theme, we exact same spoke to the World Gold Councils managing director about the process. This will happen. Each of the banks will have collected the orders from their theomers and may have orders that will be put into the process. It is much wider than the banks themselves, they are taking orders. Dempster. S natalie comments, imose joined by our guest. If i am buying physical gold, investing physical gold, does it me . Ly matter to i do not think it does. It is important for the structure of the london market and the derivative market. For investors, i do not think it makes a big deal of difference. Lets talk about the next 12ng theme of the months. It is inflation and the federal reserve. What is your view of the United States . Are we getting to a point where the fed is behind the curve . That is a key question for the gold market. Economy normalizes, it is a process. You can see the improvement in unemployment and the labor market. Is going tothe fed need to normalize monetary conditions as well. If it is too slow, if there are bubbles, it risks. Ahead or behind will become important in the gold market. We have seen a couple of good examples in recent weeks. You go to the middle of june and you had a high cpi and a couple days later, the fed said it does not matter. And you at last week have a very strong employment data. Neither the bond market nor the gold market was talked about at all because it was dovish. , a risk situation. The centralbank the upper rates and had to slash it. As you see it, we look at the labor market data, it seems like janet yellen is more concerned about wages. She is looking about 4 . Historically, that is where they have been with. Wageyou look at the growth, you looking at a lagging indicator. Do you see inflation already coming up for the u. S. Economy . Separateimportant to more than one source of inflation. Clearly, the fed it is focused on wages. What happens if you get inflation from somewhere else . As youve seen in recent weeks. Theres a possibility. Oil prices. Higher that clearly would feed into higher inflation. It will be interesting to see how the fed reacts to higher oil prices. About the markets. A lot of people were talk about a situation if you are in the market, a big theme, we are looking at the market for the past year or two. U. S. Oil production is in uniqueness applies to any tension there, no big fuss. What is the big concern . Is it essential banks inflation or geopolitical . It is geopolitics as far as we concerned. It has been an issue. The issue in the middle east has not improved at all and has deteriorated. The situation is less troubling for the market. Maybe it took the market a little while to work out. The conflict is a long way. Baghdadelp to separate from the curve, you are allowing a little more out of the north. The fundamental situation in the middle east is improving. It is still deeply concerning and not impossible that it could once again flare up. I want to talk politics a little more but a little later. Lets go to the likes of india and talk about gold. They have tried to limited success so what restrict imports of gold. It has worked into an extent. Doing they need to lift it . They have been very successful. If you look at the imports in india, they have collapse. What would be 100 times per month is 28. Yes, it has been a very successful policy in terms of the current account. T is a very unpopular now that we have a new government, it will be very interesting to see if we get any change in policy coming out. The first of budget of the new government is thursday. Does a really hurt the will of the electorate before economic reform . It is run on reform. If he going to cave in . Probably not. Theres a lot hard lifting to work. Mandate that is probusiness, progrowth, proreform. India faces a lot of difficulties. It may be that he is not in a position to give to the indian public everything they want right away. Would not be surprised to find some the things will get better, but for now, the situation is a little too difficult to left all of the gold restrictions. The drop of an Indian Imports is picked up by china. Is china likely to continue . Where does that leave us between china and u. S. Relations . Isnt about exchange . China trying to make a chinese currency more attractive than the u. S. Currency less attractive. Is it a jump too far . Little bit. Yes, china is incredibly important in the gold market. It used to be the biggest and now it is china. India used to be the biggest importer and now it is china. Is the demand for gold issues we have had in a province where an investigation and to double pledging of copper collateral has woken the market up again into problems of fraudulent use of collateral. Has gold replace the likes of copper . Wegold is very important and believe there is more gold being used than copper. It is possible the extremely strong chinese demand seen in recent months may drop off in the next few weeks and months. If it becomes an issue. You could see what happened in copper and the financing deals and the fallout and you can see it in gold as well . It is a risk. We will leave it there. Nic brown. Of sales atand drop Marks Spencer. We will talk about the details and the ceo as he faces tough budget at the annual general meeting. We will be back in 2. Who welcome back. I am jonathan ferro. It is a tough day. The company has announced another quarter of no growth in general merchandise and tamara faces a backlash Marco Belinelli faces a backlash. For more, here is caroline hyde. General Merchandise Sales continue to fall, is it as simple as less people in the shop . Less people online as well. They regretted their online presence. There were glitches interest review should. A lot has been blamed on the new relaunch of the website. Pounds 150 million project. Blame is their right now. How much longer are investors going to put up with this . It is a market that is an improvement. The British Retail Consortium is up 4 . how on earth is Marks Spencer posted a decline . A decline in clothing in particular which is where they are putting their new effort. That design teams. Wear is going is the key statement. Everywhere else is declined. They are trying to update all of the shops an update the designs and the website. It is not working right now. Clearly theres economic recovery under the you came as some are even calling it a bowl. As somet in the u. K. Are calling it a boom. I look at m s and i say forget clothes and go to food. That is what they are trying to hint at the statement. Food was outperforming. In terms of clothing, yes, sales are declining. Profits will improve. Pointed out. K the reason sales are trading off a bit, we had problems with our i ame presence, but now, promoting that. I will not be slashing the prices. Back at christmas, they start a fire fighting, slashing prices. Marco bolan is saying stick with me. Short sales may not be stellar but i am delivering better profit. Rex it is the man that goes to the igm and he is expected to walk into a hostile environment and faith pretty tough questions. What are they . Is he going to get out of there with his message . Walking out more comfortable . The message from the statement is stick with us, weens wear is improving and have a better plan next year. This is a man who is taking a pain. Crease in his he is not hidden a bonus for the past year. It is one point 5 Million Pounds seems far too much for the property advisor. 5 Million Pounds seems far too much and for the property advisor. They are saying we are against the pay because so much bigger compared to the average m s employee at. They say that is not good enough right now. They do back him in the Previous Year and is saying his pain could be in line with m s performance. He is going with a a bonds and could face a backlash but it will be about the message. Lets cut him slack. He cares about profit margin, what a novelty. Everybody likes to go out there and spend money and forgetting about delivering profit in a here and now. They are driving up revenue with the promise there will be profit in the long term. How much longer . We will leave it there. Is coming up next. Olivia, what do we got . About the private warning out of air france. Shares are off of by 5 . The culprit seems to be overcapacity from gulf carriers. Number out of cargo and what their options are to stay in the black. Well have more about the fine facing commerzbank. It looks like germanys secondbiggest leader a lender is coming to a settlement over sanctions with u. S. Regulators. Agreed to pay up to 9 billion. Commerzbank is likely to pay 500 million and they have set inde well more than that provisions. Well talk about what it means that extraterritoriality. And well have a little more on the gold and fixing the fix as you were talking about. We will have john mayer, an analyst from sp angel and we will talk about what the options are to set the price of gold in a more transparent way as the gold council met yesterday. And what is driving up the price of gold nowadays. Is it the u. S. Dollar, Interest Rates, or what is going on in iraq or el nino . All of that is coming up. A bit one for me will be commerzbank because it is another fine. 500 million. 8. 9 billion out of paribas. Should we be looking at overreach . All good questions. Interesting to see if the German Government has any reaction like french government. No secret. When it comes to robots, it has catching up to do. The man putting the bot on the map. Chris over to over to tech. Israel has earned a reputation of being a hub. We are looking at robots. Behind the door of the lab, robots. Theres a snake. It will be used for emergency a used to going to collapse the building to look for survivors. It is like the snake robot and it can move away. Looks like one that a next or from star wars. Research on the walking robot. Urlegged robot to terrain. Ly in unever like off a cliff. It looks quite scary. These are climbing robots. They are using magnets to climb. Inspection. D for damage. F there is no billed of the bots being are for israel military. More impressive than others. My favorite is this. An allterrain butler bot that recognizes me using a sensor. Adding it will follow me wherever i go. You can use it to carry items. It can be used in the military, for example, to carry equipment. The prototypes are not for sale. Even though some are made by let they are nots, toys. Unfortunately, i have to leave it there. Stay with bloomberg tv. E is next. On the ftse 100. The only thing that matters tomorrow are the feds minutes. Me,ou want to catch up with you go follow me on twitter. A red flag from air france. Shares as the biggest carrier is outcast. Cracking down on commerzbank. Penalties. Face samsung gets squeezed. On increasedimates competition from apple and chinese rivals. Chris good morning. You are watching the pulse. I am guy johnson. I am olivia sterns