Again i mario draghi. Will he promise more stimulus . Eurozone in terms of Manufacturing Services slowing to the weakest this year and Business Confidence in germany at a 17 month low. The growth is easing and confidence is falling. Will fall further . Some say it could fall as low as 1. 20. Saying, a man that cries wolf. Stimulus is not spinning into equities because mario draghi can he levitate the market that much . Currencyat new zealand is being talked down by their central bank saying it has no reason to be this high. What is on the up . The dollar. The dollar is going vertical. Beatingdata really estimates. The likes of home estimates up. Climbing to the likes of six years yesterday. We will see if it ecb is raining in the stimulus and maybe if interest rises. Lets see where we are going in the stock market areas air france trading lower but not much. Italy up by less than. 1 . Trading pretty flat as we wait for mario draghi to speak. Supplyan data and money in europe later today. Economists to get their teeth into this morning. Lets look at the individual stock moves. One of the key stories has been china this morning. There are concerns that they have uncovered a 10 billion trade ford. Many had felt that the chinese exports imports were backup that their currency regulator is saying that some companies have forged, illegally reuse documents for exports and imports. What does that mean for your commodities . We will see the overall demand for copper. 3 . Falling why . Profit up 20 we understand. Sales rise 16 . Theyre killing it online and they have concept stores. The margin is not where we wanted it. Halved. Sales have maybe many feel that 16 bounce is shortlived. On the upside is direct line. The biggest insurer of cars in the u. K. Up 2 . Why . Because they are selling the international unit. Their booking 550 million euros. If you look at the equities here you can see on carolines map a flat open. 1. 2744. Lets get some insider perspective with the Portfolio Manager of sturgeon capital. Thing mario draghi has is something he wanted, a weaker euro . Lets talk about the japaniz ation. We should talk about right here right now. Their inflation, the economy is not improving monetary alone will not solve the problem of competitiveness. Around 110 oryen 109 companies have to be competitive to be able to export. We know that in europe the in thestill lower states it is 14 higher. That is the main worry. Leadshould be the way to to a stronger margin and stronger liquidity. We are seeing many if you look at france and italy. Is this a euro story or a dollar story . It is a dollar story. Stronger than pretty much every currency. It seems to ring the second half of this year that it is dollars currency. Bank will probably be the first or second to increase interest rates. Dovish reports last week. We know that the increase of interest will be higher quicker than expected. Where do i invest . If the euro continues to go ecb willhink the provide stimulus and it could be pretty for banks. We areresting to me is seeing the strong dollar and commodities sink. You lost one of the big commodity producers here in europe. It is not like the oil price. I have seen a lot of Big Companies that are rationalizing capital to have a higher cash flow. Able to squeeze more profit out and they have left less exposure to russia compared to bp. I usually give investors a hard time but you made that call before we saw the price go higher. Will you keep this position . Yes. We will leave it there for now yannick naud. As we had to the break a quick look at european equities. Up by. 1 . To 1. 27 48llar drops as we speak. We will talk about the euro, reforms and ecb policy. Welcome back to on the move. Im jonathan ferro. Lets focus on reforms and italy. The Prime Minister rose to victory on the promise of ambitious labor reforms. The parliament has yet to act on these plants. Bloomberg sat down with the man himself. Ideas and alsol the ideas of unions. Compromise is not a bad word. We can achieve a contra compromise. In this time compromise is not the way. We must absolutely invest in a new modality. Have legalization very strong to defend workers in italy, that in the last six years the number of unemployment has doubled. 12. 6 unemployment. 43 , dramatic numbers. This is not the time of compromise, this is a time of courage. No compromise with the unions . That is one flank of your battle. The other is with the senate. You need the senate to cooperate with you. What is your relationship like. The former Prime Minister in leader ofis also the a minority party. When you write the for thethe new modality constitution, everybody must stay on the table for discuss. Thes impossible to write legislation for elections without the party. Impossible for only one to write alone the legislation. It is impossible for the baseball or baseballer or soccereraller or the to play alone. Of bella scone he in this system we must play a different match of italy. For me it is absolutely to give enough for the young employer, but also constitutional legislation could be a help to arrive. Yannick naud still with us. Lets be honest. Im sick of hearing the word reforms. Dont see much evidence of it. I look at france and i start to wonder whether they have the guts to go through with this. Still. Ink he is popular he was chosen for reform which is trying to do. He probably tried to solve too many problems with judicial reform, with the labor law. He might have been more andessful picking his fight focusing on three reforms instead of trying to change the entire environment. He is trying and no one said it would be easy. He didnt try right away when he was still popular, he is trying now. There will be a vote very soon. Minister used to be but this isr, dragging him down. s Approval Rating couldnt get lower. Japan we saw even worse so it can go lower. To push for reform in the to thee Millions Companies to change things. If youre unpopular everyone will be against you. What we have seen from air france is that when the unions go on strike they get what they want. The pilots are on strike and it looks like it will get what they want. It is not air france capitulating at the government with their 60 holding. They can talk about change but can they really . They always try to get involved in everything. In this case it was not successful. Air france has to compete against others. Touch base with streamlined which means better planes which are more costefficient and low cost. If they dont do it they will not be able to compete in europe. Lets talk Monetary Policy now. For a while every speech he wouldve heard from french politicians would have talked about a weaker euro and for the ecb to do more. Day with yannick, us. I think the decisions of mario draghi are good decisions. Is European Central bank furthering our reserve. Lot of powers more than the European Central bank. The decision of mario draghi to increase a stimulus to the economy are good decisions. Future i think the thing in this moment is to realize Structural Reforms in every country. The situation is in the hands of the government. Not the European Central bank. Draghi makes very important things. Now it is the responsibility of the government. Is that to say he should not go forward with quantitative easing or that it wouldnt be effective . Think the decisions about similar quantitative easing in my personal opinion are good. Results after the the first month and after the. Period where each bank decides on the small and medium entrepreneurs. For the moment it is impossible to give a judgment until the Fourth Quarter creates results. On the move still with us. On the move still with us. Yannick naud still with us. Why when thesee funding programs are still weak. When will we get here . I believe from mario draghi that he will expand the Balance Sheet to one trillion euro. Guess but it doesnt control the updates. I think the update in december will be much bigger than last week. It will be the result of the bank stress test. Way for the ecb to expand the Balance Sheet is bond,purchase and covered it could be a second step between qe. It is a very small pool of assets. Let me talk about the unlimited on buying program. This is being challenged. The European Court of justice will hear that challenge. They could be months before we get a result. Even then the German Supreme Court should overrule that at home in germany. Why would the ecb conducted quantitative quantitative easing before they get the stamp of approval . The things we saw in germany and europe was pretty bad. They might be a big more flexibility from germany to accept the physical stimulus. At least a bit less stressful for the ecb to do quantitive easing. I think it is a possibility and we all know that mario draghi is giving space for structural reform. The government has to use this space in order to do reform orerwise we will be in japan it will not make a big difference. Mario draghi is due to speak in the next couple of minutes from lithuania. Talking about the future of the euro. Break, this ise what the equity markets look like. Up one in frankfurt third. Shares of h m, one of the biggest followers at the open. Down by 3. 5 . Why is the stock down . Were back two. Welcome back to on the move. Im jonathan ferro. Draghi president mario will be speaking about the future of the euro. He says that economic reform is possible without evaluating the currency. On lithuanias decision to join the euro he says that means the common currency is attractive. As for the inflation rate which target, he of the says i can assure you that we take our price stability mandate seriously and we will continue to do so. The bottom line is that he has indicated he will get the Balance Sheet up by one trillion euros. A lot of people think we may have to conduct sovereign quantitative easing in the euro zone. At 1. 27. W lows we have not seen since 2012. More headlines as they come through in the morning. Intelligence joins us for a look at some of the numbers. The stocks are trading lower. H m released their sales last week and they were strong. I think investors were looking for a beat rather than a match. Talk to me about the environment right now and fashion retail. You look at asos, they have been suffering. Asos, has been suffering more on the profits than sales. H m is one of the stronger countries but even in germany it has pursued performed well. The outlook in h m, optimistic from here . I think h m has consistently grown. Brands isse new growing and costs money but it is expanding. It is growing into australia. It is opened in italy, spain and china. If you dont beat the estimates you see what happens to the stocks. Xt in on the move a drop in air france shares. We hear from the always outspoken michael who talks about his attitude toward uni and north korea. Is back in two. Welcome back to on the move. 30 minutes into your trading day and this is what equity markets look like. The dax open in frankfurt up. 25 . The euro dollar sinking. The ecb president speaking right now and lithuania. The euro is attractive. Lets get over to caroline hyde. Its looking like a boiling gas commodity seen. This energy is still gaining. It is cashing in on licenses in the u. K. North sea. U. K. By 10 of the licensees . Funding these expansions. On the other side of commodities you have a few of the minors leading the downside. Bhp billiton down 1. 5 . The currency regulator finds it perhaps not that surprising. The importexport data from china that reduce demand for some of the key china. Will that reduce demand for some of the key investors . Sales are up 16 . , evenncern is the future though we take on lightest trying to scale up and introduced it in france and italy. There is concern of slowing in september. Half it was in the previous quarter. Maybe a little bit of concern for the future this week. Those of us stocks on the move. The top headlines. The pentagon says that u. S. And arab nor points Oil Refineries in eastern syria. Is attacks hit 12 facilities oil swaddling operations. According to some estimates the militias may have been raising 2 million per day from oil sales. The euro is heading for its weakest quarterly performance since the financial crisis. Tracing the fiscal currency to a 2012 in november low. Speaking andghi lithuania as we speak. Prime minister of italy is resting ahead with his plan for the labor market. In an interview with bloomberg he says reform is still at the top of his agenda. Vision for the next europe and with an investment. Another story we have been closely following is a battle between air france and their pilots who have been on strike since monday. The carrier is planning to drop plans for a lowcost subsidiary outside of france. Bloomberg cut up with the air france ceo. I think france will be the country im least interested in growing in. A sorted out their union legislation, particularly with their design. We are content to continue to grow in spain, italy, germany and central europe. Growing were we are rapidly. We opened a new base and flies three times a day between glasgow, and edinburgh. Where happy to expand in those markets where we see lots of opportunities. Until the french sort out their legal structures and particularly their north korean , we would benions fairly slow to open and france. You have expressed in the about the way the pilots approached this industry. What advice would you give to the union at air france . I would say the policy he is pursuing which is making concessions to this pilots. Which they wouldnt expand and grow outside you have to stand up to those pilot unions. If that means take the strike for a week or two, take it. Youll never make air france or Louis Vuittons a or i e. G. Stronger. Orair france or lufthanse ieg stronger. Calmer eep the conversation on air france. Great having you here. We talk about winners and losers. The big loser, air france and the winner the your budget carriers. The likes of ryanair. Thats right what we see is the ability to develop into a lowcost carrier. What it would have enabled them is effectively to compete on a cost basis. We talk about levers that you can pull, you talk about fuel cost but they cant control it. Proportion youin look at 30 fuel costs and 30 wage growth. Fuel cast theyre not able to control. For air france if they cant expand a budget subsidiary is this the beginning of the end . If you look at the other european players they will manage to make their mark on this carrier segment. You think of lufthanse, and aig with a lowcost subsidiaries. In the future how it will develop is on shore. They are losing important slots at airports and that is obviously of a win. You might as well have a 51 stake if youre making announcements that the even the company isnt making. We have to remember the ceo of air france is an employee of the french state. Thats going to take the headlines. Lets talk about the money. You have to realize that airbus is now an integrated company. It has come taken a decade to get to where they are now and we are just seeing the benefits. Lineup thatproduct will set them up for the next 20 years. That supping else on their side, the eurodollar are in dollar. That there are selling aircraft in dollars but they havent cost base that is in euros. Any weakness in the euro is certainly positive. If youre looking at the comparison, it is something that reinforces airbus, but as a matter of fact boeing is still in the 100 dollar currency. The stories seem to tie together. Airbus, the big clients are in the middle east. Those carriers dont have the unions on their backs. In the middle east we are seeing the strategy of these airlines to go toward larger aircraft. That is where the value lies. Value lies in large aircraft. Airbus, one of your top picks . They are one of them. There are other stories across europe where we sink think there is potential. One of the more risky ones might be finmeccanica. Will get to that another day. Thank you very much for joining me this morning. Lets check in with hans nichols who is in berlin. I have heard them described as luxury car dealers is that how you see it . That is one possibility. I am here outside of the new mall of berlin. There is a line forming and they will be opening in a few minutes. Will start checking passports to see if the spenders are germans or past or tourists. Welcome back to on the move. 8 42 here in the u. K. Germanys soontobe largest Shopping Mall opened in berlin as a country is under pressure to increase consumer spending. Lets get to our International Correspondent onto nichols. Germans are going shopping . Berliners will go shopping, the broader question is will germans as a whole go shopping . And how many of them will be germans or tourists . When you take a look at berlin retail sales they are up 4. 7 on the year but across the country it is flat. Or the criticism that germans are spending. There are economy needs to be focused on more inward. Centerhas been a tourism so it is hard to differentiate how much of these numbers are foreigner spending or german spending. Since 2007 they have had 50 increase in tourist visits. 11 million in 2013. What isder question is the german consumer going to do . They spend a lot on their vacations but sometimes that is out of the country. They spend a lot on cars but that is a single Ticket Purchase item. German Household Spending is clearly lower. Consumer spending has been on an uptick but a lot of that has to do with travel. Here, how many of these people in line are german . Here is a followup. Withople arent familiar the opening across the eurozone, shopping on a sunday is maybe a little bit difficult to read this mall opened on a sunday . It will be open for one sunday as they have their big grand opening that eventually this mall, like Everything Else in germany, because on sunday. Here is my plan to stimulate the german economy, open stores on sunday. I know that Church Attendance will be down and the disillusion of the family but if you need to run errands on sunday in germany you feel yourself agitating against the sunday close law. Theow you are usually at pub without doing any shopping you are very responsible. Opening hours. Guy johnson joins us from the look ahead. Yet mario draghi speaking in lithuania, lithuania joining the eurozone next year. For you, is reform the buzz word . You can draw the line between a watt between what hans as talking about and the government that doesnt want to do reforms and that we have been speaking to the italian Prime Minister and the business is getting antsy because he is not going fast enough or far enough and you can draw that line back to mario draghi and his desire to see things happen in the eurozone. All of our stories today are linked. The common question is what does europe due to fix its problems . France. Look at that story carefully. What does that tell you . His italian counterpart, what does he do next . All of this part and parcel with the big market move we have seen this morning. Againrope is trading down and all of this tell you that the market is beginning to get on board with the idea that more aggressive our action more aggressive action has to come from the ecb. The eurodollar sinking down for a third. 1. 27. Here are some companies on the move. Cfo wasntmer required to work the final six months of his contract. He was not involved and had no input in any financial matters gearing the. Under investigation. Also, Standard Poors announced the Credit Rating may be cut to junk. They said they wont sell the controlling 20 stake in the lender. A want to keep denmarks biggest lender danish. Google chairman eric smith says the Companies Growing competition with apple has been good for consumers because it pushes smartphone prices lower. The rivalry is led to lower prices. In an interview with bloomberg, google commented on what needs to do to be competitive in the global market. Europe needs to choose innovation. And their entering a third recession. The only way for europe is to embrace innovation and they will need to have more flexible label markets and they will need a lot of work to create local companies. The model has to shift. U. K. , glasgow has named Philip Hampton of the royal bank of scotland as their executive chairman. This gives them a new leader. Hampton will leave rbs in 2015. That is one of the worst cap secrets in corporate u. K. Secrets in corporate u. K. Us. With back in two. Welcome back to on the move. We showed you what happened since the new ceo vowed to turn around the company. I told people that we would stay profitable in the fiscal year two dozen 16. So sometime in the 2015 calendar. Ofending on the receptivity all of these phones and the classic coming out and two release,ur software im expecting some growth next year. Growth id get some will be a will to make it profitable sooner. Me, whoe lady said to has a harder job, john chan or the man at the top of tesco. Shares gained over 7 after raising 3 billion in its ipo. Ruth, what does the ipo mean for rbs right now . We see a little bit of a top pop. Notee interesting thing to is a price it below the market range. They came in at 21. 5. We spoke to him yesterday and he said the one place they have not enabled to work is on financial performance. Said we will not buy it at 23 and we will come in lower. Now that the stock has started to move there has been demand. Own 75 of the company and they can get a years extension, so they still have a bit of time to get through the assets. Just a note, theyre going to realize a loss of about 200 million on this. Which will start coming through when they had sold 50 of the stake. So it matters to me and you and people watching. 3 billion might have been a little bit of a disappointment, but it is still ok for rbs. Good start because they are starting to get rid of their unwanted assets. It is a great start for them. Yesterday rbs shares were up as well. There are still probably going to need a capital increase. Do they carryon selling this often chunks . Second ratet doing share sales and they cant sell anything for six months. Then depending on where the pricing as they start doing it in smaller chunks. Thank you ruth david. As we had to the break i want to bring you a picture of the markets. Eurodollar is much lower. One euro buys you just over 1. 27. Talking ini lithuania and was talking about lithuania joining joining the euro. The long euro isnt attractive at all. About half a percent down now. Since the high in may were down 8 . Where is it go from here. Look at that move over the last six months. What doesnt it mean for big corporate here in europe. We have been talking about that a lot. The big question for us going this in thehether euro gives a buffer to france and italy to do nothing. What i mean about that is reforms. When they talk about reforms what do they mean . The transport minister announces they will back down before air france announced it in cells. That doesnt tell me reforms are happening in the eurozone. Watch for guy johnson after the break on the pulse. Minutes. Wo follow me on twitter. Reforms,lk the euro, ecb, Monetary Policy. Is back in two. Equity markets pushing high. Freefall, the euro falls sure way as draghi says he is ready to take action. But is it time for government to do more . Strikes. E gives into serious customer say the new iphone thens in their pocket. Bends in their pockets. Goo