Lets see how we are opening up across the board. Germany up 0. 3 . Ftse, similar. Pretty flat in france. It all focuses on central banks. Saying, draghi is throwing everything he can despite printing monday in his bedroom. Will he get the sign off for full on quantitative easing . We want to see whether that will be in the pipeline. That is what is making people buy stocks. Lets have a look at what it is doing to the rest of europe. We have bank of england coming out. The biooe decision. 12 45 is the ecb decision. In the moment, we are seeing british pound pretty flat. 1. 5694. Lets have a look at the euro. We are getting the euro pushing lower against the dollar on that hope that we will see yet more stimulus. That will be a boost to exporters if we start to see the euro trading lower. At the moment, ftse staying unchanged. 1. 23 a seven is where we are at. Is where we are at. U. S. Jobless claims at 1 30 p. M. Today. That will be moving the dollar slightly. Lets look at the debt market. Risk appetite clearly being showing here. Borrowing costs coming down. Borrowing costs going up for germany. If you are getting out of the havens, we see borrowing costs rise. German debtre the currently trades. Money moving out of the havens, moving into equities. Lets have a look at some of the key movers. Particularly, focus on u. K. Stocks. Bskyb up 1. 3 . Sky plc nowadays. Theyve agreed to sell their controlling stake in an online betting business. They are selling it to a private equity buyer. 720 Million Pounds. Sky plc goes up. That fair. Im sure this one is going to go up. Firsthalf revenue up 23 . Interesting, yet still we are seeing the move to mobile even when it is coming to gaming. Mobile revenue more than doubling. 70 of their business is the mobile area. If you are a shareholder, youve got a little smile on your face today. 200 Million Pounds coming in your direction in shareholder givebacks. Ryanair, up more than 5 . For the third time this year, they raised their profit forecast. They are now winning in terms of their focus on the business. Hey have been more huggable, they dont want to scare you off. They are trying to make the whole experience more cozy. We are seeing ryanair upgrading their fullyear profit. That is up almost 8 . Thank you very much, caroline. The ftse 100 opens a little higher. We are up 0. 2 . Lets get the investors on todays top themes. One big focus here in europe, the European Central bank question forone markets and investors today, the qe question. Lets put that question to our guest, james bevan. Good morning. It feels like groundhog day. Is today the day they pull the trigger . I think they will talk about it and make commitments. We should all recognize that it is a necessary but not sufficient condition to get the eurozone moving again. We have to have governors spend more money to get growth. We have to have structural reform. I see no physical appetite for structural reform. Wouldnt it be nice if we had a press conference with Angela Merkel every month . Maybe the game might change. Hollande too. When you look at what qe could do, i look at the bond markets and see yields on the floor. What could qe actually do fundamentally . It is not about taking yields down, it is about getting inflation up. This is an effort to kickstart the economy. It is necessary but i really dont think that it is sufficient to get the eurozone over the hump. Look at oil prices right now. Brent down on the year by 36 . I tell mainstreet that brent trades at 70, they do this, happy days. Wall street, they turn around and go, not good for Inflation Expectations. Surely 70 brent is better than 150 brent. It is an issue of time lag. Lower oil prices throw up all sorts of difficulties. 15 of u. S. Highyield debt is predicated on an outlook for a much higher oil price. There is going to be a lot of pain in that area. A lot of the buying is done by countries that export oil. They are not going to have as much money. Therefore, less growth. Lower Oil Prices Mean less inflation. I think that is good news. Much better for growth trends. However, are unrealistic in assuming the oil price we came from was fair and reasonable. I think we have a couple of years at this price. We have about 90 Million Barrels a day being consumed. About 30 coming from opec, of which saudi is around 10. The u. S. Has increased production to around five. We have considerable tensions in the middle east and north africa. Only about 2 Million Barrels a day. This premise that the oil price is now stable is, i think, inappropriate. How does mario draghi juggle this one today . Does he worry about Inflation Expectations . I think mr. Draghi will again come it to whatever is necessary to keep the show on the road. He will make the noises because that is one of his principal skill sets. Since been doing this 2012 and i expect more of the same today. Lets took about money. I look at the markets, i question whether they trade on fundamentals here in europe. Ive seen this movie before in japan. Ive seen the u. S. Version. We are about to see the european version. You execute on qe, stocks go higher. We should also assume the euro is on a trend lower. We need to buy good Quality Companies but also u. S. Earnings. Im looking at Companies Like sap, companies that i think our worldclass class in their own right. New twoyear lows this morning. Sterling lower as well. We talk about sterling after the break with james bevan. Here is a look at one stock on the move this morning. Equities higher, not as high as this. The lowcost carrier has lifted its fullyear profit forecast to over 800 Million Euros. The stock up over 8 . More on that story after the break. Well hear from another airline ceo. They are having a turbulent time. We hear from the lufthansa chief executive. Here is a picture of the markets. Ryanairs urging, the ftse up, the dax trading higher. The big one is the ecb decision later on. Stay with on the move. We are back after this short break. Welcome back. Im jonathan ferro. We stream online, on your phone, on apple tv and amazon fire tv as well as normal tv. Lets get back to business. Almost 9 , that is how much the value of sterling has fallen against the dollar since july. James bevan stays with us and says that 70 of earnings coming from overseas here in the u k the relative performance of u. K. Equities is as a much about sterling as anything else. The story is not talk much about. We talked about the weakness of the euro and the yen. We havent discussed the weakness of sterling. It is important in support of Companies Like ba he systems stems. The current account is a really dreadful situation. We have had a lot more investment than most have expected but we do not have improvements in the current account deficit. I dont think the bank of england is going to do anything today. When i think about where our currency is going, the standout currency trade has got to be the weakness of the yen. Buy in good Quality Companies sumitomota, like electric, and we talk about airlines. Why is toyota a good Quality Company . I see these headlines quite often with car companies, they drop in front of my screen and they say they have got to recall thousands of cars because of an airbag situation. This company pays a dividend yield of 2. 5 . Solid longterm growth potentials and excellent balance sheet. The combination of valuation and improving momentum to me, makes it a standout by. Dollaryen versus eurodollar. Dollaryen is winning. The bank of japan is winning right now. When i see Something Like ¥140 to the dollar, that is where i think it is going to end up. Thinking about the economy drowning in a week currency. The bank of japan is going to push forward further with its attempts to revive the economy. Strongoing to be a driver. I wonder about global deflation. The weaker yen makes taiwan more difficult. , companies that have coped with price deflation. When we talk about central , i look to oil in the summer and everyone turns to me and says, of course brent is where it is. I dont call many people saying it back in june. In june, sterling was pushing 1. 70. Everyone was saying, the bank of england is probably going to hike rates. Point 56 andt one everyone is saying the same thing again. Im painting a negative picture for the pound. Is it that negative . The drivers at the central bank are Wage Inflation. When you look at what came out of the beige book yesterday, i think the fed might move as early as march. The driver in terms of Wage Inflation is beginning to emerge. Until we see a pickup in Wage Inflation a rate hike as soon as much from the fed, what are the implications of that for the markets . I think they are quite hazardous in terms of where the u. S. Equity market may settle. Andould see the s p move up then come back down to 2100. In contrast, i do think japan is an excellent market. Europe has some outstanding opportunities. Wellnk the u. K. Looks played. Fed rate hike, you think march of next year. What the ecb Vice President says they will think about on quantitative easing. Rate hike do the heavy lifting for them . In terms ofoblems lack of competitiveness related to structural fragility. Until we get europe understanding how to respond in a Global Market context, is ultimately failure. As i look ahead to the next five years in europe, you see no change in terms of structural adjustments in france or italy. It is a real political challenge. They domestic germany, have a strong labor market and a higher Approval Rating for Angela Merkel. And they like the weakness of the euro. Why is the situation going to change . The burden of responsibility on peripheral economies is going to get worse and worse. At some point, the ecb will say, we are not going to do this anymore. Project is eurozone at serious risk. I do think we have to see real structural reform. We have to see the capacity for labor to be handled in a way that the u. S. Has been able to address its labor market. Clearly im not going to see pain in the bond market. Where do i see the pain . We could well see a populist move toward policies that are going to be more prolabor. James bevan, thank you very much. Chief Investment Officer at ccla investment management. Coming up, a tale of two airlines. Ryanair sending shares much higher. Lufthansa shares have been struggling for a while. Will they get a boost this morning . We talk to the airline chief executive after the break. Stay with us. Welcome back. Im jonathan ferro. Time to talk about airlines. Ryanair raised its fullyear guidance. Joining us now is kari lundgren. Ryanair just looking uber confident every single month it seems. Incredibly confident. The thing ryanair wanted to do this season was keep fewer planes on the ground and boost capacity. In november, they increased capacity 13 . They saw a 22 increase on top of that in passenger numbers. Increasing capacity, they are boosting passenger numbers, seeing load factors up. Always been a Serious Business but it has also been kind of a joke airline for the consumer. You get your 10 pound flight to spain, italy, france, whatever. Their angle has become a serious airline now. You see lufthansa on strike and ryanair picking up the pieces. Are they going to continue to do that . They are trying to be taken more seriously. They cleaned up their website, they partnered with amex, they created a bundled fair for the business passenger so you dont have to think about where your seat is. They are absolutely trying to be taken more seriously. They are seeing improvement on certain city pairs where they are in competition. Even easyjet. Toy are definitely angling be taken more seriously. Easyjet part of the same story, the stock up almost 4 this morning. Another potential tailwind for these airlines is jet fuel. That is not a story i heard this morning. Is that something we are going to hear about soon . They are 90 hedged. They are very comfortable in this position. I was talking to the ceo of norwegian yesterday. He was saying it boosts the economy. That is beneficial for the airlines. With ryanair, it was important that they noted they still have the Fourth Quarter coming up. They have very little insight into what that will look like. Will there be another profit increase . We have to wait and see. It is the third one this year. Very quickly, the cuts in the u. K. , how much of a difference is it going to make for these airlines . Generally, what the Airlines Want is to get rid of the whole thing. If you ask any executive, they will say, scrap the whole thing. It is bad for business, bad for u. K. Plc. Get more people on planes. We all want reduced to get fares. That is the good news this morning. Lets keep it airborne. A company experiencing some turbulence this week, lufthansa has cleared a new Lowcost Airline for take off. Traditional pilots continue the strike. The german carrier will have to cancel long haul flights today. The ceo is hopeful that the appointment of a mediator will help resolve the conflict. Im sure that we made a significant move forward today by addressing our partners in the cockpit with the fact that we believe there should be a mediator bringing us together on the difficult issue of transfer payments for early pensions. At the same time, we have communicated that we believe unsuccessful talks about the project should come to an end since there is no solution in sight. The reason for the striking action is something the mediator will hopefully come to a solution. Correspondental hans Nichols Nichols joins us now for more. Are these moods related . Good question. They are for the pilots. The pilots see the money lufthansa is putting into euro wings and german wings. They are concerned their investments are going into the lowcost carrier. The airline is saying that the board voted to expand. They are going to have flights leaving from cologne to places like florida, indian ocean and southern africa. They say they are serving customer demand. When we spoke early yesterday, his goal was to have more flights go to these places. They are serving customer demand. Look at the strike, it does continue. 37 flights will be canceled today. That is half of their longhaul flights. There is a report out today that it is costing the German Economy 25 Million Euros a day. That is 170 Million Euros for the company. Is thater for lufthansa because of all the strikes, customers have had a sample of the other offerings. They are going to switch their loyalty. There is always a chance of flying private. We spoke with the lunajets ceo earlier. I know that is how you prefer to fly. You are a liar, hans nichols. Thank you very much. Bill,howed you his travel you would know about it. Coming up, decision day for the ecb. We preview Mario Draghis last meeting of the year. Stay with us. Welcome back. We are in bloomberg was headquarters. It is flat across the board. The ftse 100 is dead flat. The stoxx 600 looks boring. I assure you it is not. Lets liven things up. We have big movers today. The area is at the top of leaderboard. The have raised the Profit Guidance up and it is up and the shares are at a record high. Pretty is probably pleased. He took a page out of the book of easyjet. The traffic is rising on the back of the business flying accounts. It seems that people are trying to get on the route of business travelers. That sets ryan hair higher ryanair higher. We have selling off the betting unit to a private equity buyer. Seeooks better because we the shares surging on the back of earnings. They are saying that the revenue is up by 26 and the earnings are up 51 . Mobile is where it is that. If you want to lay a bet, do it on your mobile phone. Welcome to the big boys club. They are being put on the ftse 100. The companies have done phenomenally this year and are up. What is falling out is commodity stocks. And it isoming out clearly getting a boost. The main area of trading is the ftse 100 and that all takes place on december 22. The announcement came late last night. Back to you. Thank you very much. Those are the stocks we are watching. Lets change gears and look at the ipos. What should we expect in 2015. 2015 . Theing me to discuss outlook is the head of Capital Markets at j. P. Morgan. Great to have you with us. Lets start with the ipo. The Media Business is a funny business. You talk about them and you hype them up. You talk about alibaba and you ridicule the performance. Talk about the ipo performance. In europe and against the u. S. , what is the difference . You look at it, up. If you had put money across all of the ipo costs you would have made good money. Taking an interest in ipos in the way they have not any a while. U. S. Investors see the valuation cap. What we saw at the beginning of the year was european Equities Trading and we put money into europe. Europe is a part of diversification and it was a good return. Talk to me about equity Capital Markets. In terms of activity, i was shocked to see some of the numbers that you sent to me for europe versus the united states. I looked a record and at the last 10 years and have not seen it with more equity raise. They key across the ipos that we saw was a capital flight issue before, thered are some american investors playing it and it is increasing activity. What is driving people to do this. We talk about a year that is struggling and is in a slow grind in the cusp of another recession. What is driving it . Supporting thet ecb and you may see a strategy in europe. Equitiesded european are popular. I look at j. P. Morgan. I know you will not pat your own back. Surpassed yours records in 2009. A huge year for you guys. Do you expect another one next year . We have been together for a long time and, i am positive about next year. The ipos could be on a stronger side. You could see the trend and big companies. This will be a trend. Me about the private equity firms. They wanted an exit and they could not get one. Is the pipe one is the pipeline there . There are a lot of good assets. Side, you have seen some of them investing. It will be busy for them. Absorbing the ipo in the equity market. You have the monster ipo and the question on if the market could absorb the ipo. You look at the stock buybacks and apply of stock buybacks is actually shrinking. Is that going to continue . You take over and cash goes back to investors. You see the buyback. Some people are putting more money into equity funds. Continue. I want to change things up and get your take on the opposite trend. Companies are going private, as well as the we spoke with the dell ceo who took the company private. He said it is something we could see more of from public companies. I have had quite a few of them contact me and asked me about how we went through the process and what it was like. That sort of thing. It was not an easy thing to go through the process. It, we have gotten through it has been a lot easier to manage the business as a private entity. Excepttake on risks and except risk. We can invest more risky. You could be seeing more. Discussionshes about taking companies public. Is there a trend to take them private. Interest rates are at a low and the debt markets are attractive. You can do a lot on the finance side. Some need restructuring. And, of course it is attractive. I want to wrap it up there. Driver on policy and the bottom line . There is another driver of the next year. The stock is trading fine. The stock traded up. Thank you for joining us this morning. Coming up, decision day for the ecb. We preview the last meeting of the year and what is in store next year. You do not want to miss that. To qe or not to qe is the question. The last ecb decision of the year. It feels like groundhog day. There is more talk than action. The burden of the decision has been shifted to the First Quarter of 2015. And i think, today, we could get some commitment around inflation. There is an announcement to make another announcement next year. With bondstant issued by the bank. I hope to buy sovereigns, as well as to it is a scene we have seen. Interesting about this was, having met the man, this is a man who is in line with the executive boards. Is a high there chance of that in the First Quarter. Has voicesng council from the core of europe. To discuss what they will buy, there is in decision within the windy city and there are not many options. You can buy bonds that are back to the development in germany you focus on infrastructure and development. You can buy sovereigns and hope that governments will spend will p most investors governments will spend. Most investors. This has to be a comprehensive approach. You see what mario draghi may or may not do and we have seen the plan. Is not what we were expecting. They may use a bazooka. The plan is falling short. Now, they are solving the crisis and it is definitely ironic. It was part of the crisis in the first place. 21 million is a basis point. You have to pay. In projects you can invest generates cash flows. Governments and companies cannot do it by themselves. Risktaking and a lack of size and transparency in the moment with all of the Global Investors who believe the plan will work. Lets talk about the market strategy. You came on and talk about how the periphery was about to turn. You got the turn and it was a false dawn. Dropping. Ng at it can it just goes lower . We have turned. We have to take a oneyear view and there are things that can survive with the liquidity. They can sell assets and they passed a labor reform recently. This has a problem and these are names that are going to absolve the debt. There may be a higher end. It is a lot more similar to japanese qe. Bonds and thehese same question that we face every month on whether they will continue to meet our spots ability. Expectations. Se he has created it for his back here. He wants inflation. It then, im betting against actually working. Do i really want to hold france to 1 . As an investor, you expect it and another round of qe. You buy Financial Assets and you do not invest. That is the trap we are and. Japan has already gotten into it and, with that investment or reforms, Global Investors believe it would not work and they would have to do it. Man who had fixed income. Why with that burst . If you are going to the low you havee spectrum, the issue of the bonds. Into this. Growth is not going to be strong. You are going to stay with me. Ahead, just a reminder of what to expect those decisions. Everybody is expecting that. Want, you can tune into bloomberg coverage. Is at 1 30 this afternoon. Unilever says it is separating the spread business into a standalone business. It will become a Company Operational in the middle of 2015. The shares are up. We had to the break and here is a picture of the equity markets. The dax is up. And a freshove twoyear low. Stay with us. We are back after the short break. Welcome back. I am jonathan ferro. Vladimir putin will try to ease growing concerns in russia as he delivers an annual address to parliament. We hear from a man with an inside track on all things russia. Industriesured into ranging from beer and banking. Spoke with the Richard Branson of russia. Lets listen to that interview right now. Before, there were sanctions and it did not matter to us. Sanctions are fine. Was an economic slowdown. It was not good. We are ok. Now, oil price, i think, will close. So much as tied to the oil price. It affects companies and production. It is time to lay off the people now. And theyve the job start to default on their credit. That is my business because of my default and the bad loans go up. That is my concern. The oil price could affect my bank. Some people think it is good for russia because the russian awaymy will sort of get from the oil needle, it is called. I do not believe that. We have seen the price of oil fall before. In 2008. Pened i did not see any major changes in the russian structure. That thebelieve structure of the russian economy will change because of the oil prices. I am not so confident. I think we move faster for a couple of years. It is interesting that you mentioned unemployment because unemployment is something that russia has not had much of. With these oil prices, we will have it, im sure. Ryan chilcote with us right now. We are going to struggle for the next couple of years. He did not paint a pretty picture of what happened. They Just Announced a dividend. You look at the share price and it is down since the ipo in october of last year. It may be a buying opportunity. He owns half of the company. He has seen a lot of personal wealth go down along with the share price. Russia,everybody in since december 1, maybe there is a little hope on the horizon. It is up since the beginning of the month. The hope is that everybody talks about oil continuing to decline with prices going nowhere. Maybe, we have a bottom. He hopes that the russian economy might restructure on the back of an oil price. The pulse is next and they will speak to mario monti in a few minutes. We had to break it here is a picture of the markets for you. Markets are higher and we are flat on the day. I want to bring you what is happening with the euro for the First Time Since 2012. We have come back a little bit. Everybody is looking to the big one. Well bring you the decision and the press conference at 1 30. In the meantime, if you want to talk markets, we can talk on twitter. That is it for on the move. Good luck for the rest of your day. A fresh start as the ecb meets in a new building. Will they deliver anything new today . We will get the take on the story. Vladimir putin and the press. We will bring you a bloomberg exclusive interview. Raises thest carrier guidance for a third time this year. We will have analysis on the story later in the program