They bring it up through 2013 and 2014. The aftertax profit is up with a quarter of a billion euros better. This year is at 10 and the market really likes it. These guys are going for the customers in the next couple of years and 27 of that is families and they have been a critical part of the strategy. There are reports in the journal that julius may face lighter financial penalties in the United States of america. This is in remarks to undeclared accounts. There was a fine levied against them and they got vodafone trading and are they considering the Public Offering . The shares are off. They have sales and customers. The stock is up. Huge momentum. Lets turn to the markets. It seems to be where the spike and momentum is coming from. The question is, are you a dollar bowl . Bull . They talk about it being nearly there and not quite there. They get up and running and they go back. The richmond fed space today and spoke today and said the door is open. The question is, are you a dollar bull . The calls for parity . Where are they . A lot of work for you. In london, there is a flat start and chinese stocks are on an absolute chair tear. Lets go to richard frost in hong kong. The number one question is what is behind the optimism. It is a wall of money. If they do not get it now, they will be left behind. The risk is 14 in the past six days and, if you look at the stocks that have fallen this year, there is only a handful. Really, it doesnt matter so much. You are going to do well. You look at the shanghai composite and this year, in 2015, there is a remarkable move and share prices. What do you make of that . If you look at the index trade, the companys are now trading at 110 times reported earnings. Some of the biggest movers there are up more than 3000 . They make online videos and they determined the billionaire. There are tons of stocks. They start out small and the private company are in the hottest topics. You see those kind of companies and, at the moment, it does not seem to be in interest. They tried to testify. Lets talk about goldman properties. It plummeted for almost no reason. It was down one day and then, a rebound by 60 . What is the story with Golden Properties and financial . They rallied for no reason in the past 12 months and this is common. Not so common in hong kong. The link is between hong kong and shanghai and it has been a trading frenzy. It is unclear what the rebound is and the shares continued. We are not seeing any reaction there. They have been mysterious and the funding of this Company Remains unclear. It makes it hard for the investor to find out more. Remarkable. Lets get more from the investor. We have the global head of equity trading and he is the senior fx strategist. Lets start with you. The composite is over 100 and the biggest gainer on this is technology. It is thousands of percentage points. What on earth is going on in this market . The performances are limited and technically, you have the system on the north and south side and it seems to be a focus. In the context of global positioning, we have gone through two months of market degeneration and the dollar was along position month ago and it is being addressed. It is very retail driven and we look at the situation, notwithstanding some the quiddity and some of the biggest pressures with the brokers accounts. We have the leverage. Do we have to wait till the foreign money comes in to call this what it is . We have the research recently and i am not sure that is where it would start. I read that and a quote was, a bubble is something you can fight not own. They can go for a bit longer. I would ask the question look, the equity market is attached from the market fundamentals. For you, you have the bank of china. When does the rally become a problem . First, i would say there is the volume of margin accounts and Financial Stability risks. There is 2 trillion and it is not really there yet. Broadly speaking, what happened is the macro figures trying to rebalance and the household rally if they manage to take the profit, they channel the Consumer Spending and it was a policy objective. That is more than anything else and you have investment in the economy. You have growth and the message is very important. Are they trying to separate what they do on liquidity . Or, is he going in the equity. You have the hope that there will be underlying growth and are we there yet . We dont know. Jonathan people step in. Is this a correction . Retail intends to step in and the fact that they are underweight you may get most of it on the way down. You have it at 300 . Probably not. They are benefiting some of the measures announced. We have the liquids and, if you want to get in and out, you actually can, instead of causing the liquidity situation. Jonathan a couple of years now the banks are undervalued. Why discriminate . We were caught they were caught in a vicious cycle of capitalizing and trading below retails and 75 billion was raised to the issue and there should be a lot. We think there is an interesting story. It seems to be turning global. We are seeing more interest in banks and yield. Notwithstanding the greek situation, there is also a better price coming out. Jonathan we will talk the greek situation after the break. Relationship counseling across europe. David cameron embarks on his with the european union. Ryanair takes off. Is the great bond selloff over . The bond bears retreat. We will do all of that and more later in the show. Jonathan good morning. Lets bring you up to speed on the stories. Annualized 3. 2 , comparing with estimates. Ryanairs earnings jumped and it rose. That is 247 million higher than the predictions made the previous year. Ryanair has been working on a softer approach to service and vodafone is considering an ipo for the indian business. It accounts for the vodafone revenue. Lets turn to greece now. Officials revise their bids to assess financial aid. We have another cliffhanger for the nation. They may not have that. Talk me through the deadlines. They will not be able to pay. We heard about the oped and he was talking about the germans. There is the austerity. Take a look at this quote. This gives you a sense of what the red line is. They cannot and will not accept a cure over five years that has been proven to be worse than the disease. We talk about the payments. You have them throughout the month and they will be coming do. You heard from all of her blacks and he talked about the need for greece to reform the Civil Servant program. There are too Many Civil Service out there and a little bit of a value added tax and it is clear. Wolfgang gave the interview and he said that it is clear that it would have to come from the greek side. Jonathan i read it and it could have done written two years ago. We are at the same place and we talk about the rhetoric. Does he have the rhetoric to change or negotiate . Ryan it is whether to compromise on the core values. They keep getting repeated and the vote only failed by 95. Remember, they have the majority in the 300 seat parliament. 75 would like to see a default. We would have to see with the challenges on the core values are. They have the finance ministers meeting and he is anticipating criticism from me americans for his position. He looks like he will not but. Jonathan thank you very much. There is the senior strategy here is the political decision. We have a lot of people talking about it and putting it to june 19. That is the financial auction. That reason is a political decision. One thing we try to do stress is this has to be taken at the highest political levels and it is important when they talk about that. Even if they meet the observations and what were talking about, it is one the best congregations and the have been trying to allocate funding for the liquidity needs. When push comes to shove, i think that would change complexions and we are halfway there. I think that will focus a bit and we will see what happens next. Jonathan you hear what happens and it makes the practice get messy quickly. A can. I guess i will go back into the spanish elections. There is a clear drive to make sure that whatever happens in greece stays contained in greece and the numbers we are taking are not outrageously high. I say the default payment does not get even missing a payment it is not necessarily going to be super comfortable for markets. The hedging is cheap. Jonathan still pretty cheap. The negotiations with the rest of europe are dragging on. It is between the u. K. And the eu. The Commission President discussed membership and run us through the details. Step one they tour europe to kickoff negotiations. They were unhappy with the status quo. Obviously, it goes on to germany and the french president. There is a meeting of leaders with month and make is plenty of opportunities to set out what they are trying to achieve. How likely is cameron to get what he wants. We know he is looking for reform. He is not looking to change. What he wants to achieve is the party hopeful. Change is not likely to happen. We may get negotiations that say change is possible in the future. You for joining us. We have this election and do you think that will continue . Will create uncertainty never good for investment. They can slow down some of the potential. We could see it and the 250 is a driver. The dollar is stronger and giving earnings for the ftse 100 the bode well. We do think it is to the upside and it is more so than the domestic story. Jonathan the immediate discussion was ok. Do you stare that sure that . The market viewed the benefits and the probusiness framework. The options expired and the cost of hedging should be held. The chances of it moving in this matter are aware some are calling for the vote. Overall, i think there is a scotlandlike scenario with the entity and spot. The innovation returns and i do not think we are there yet. Jonathan it is months until the fed hike and the bank of england hike. You have the negative number and the fed moves. The boe is going to move and then it does not. There is a beautiful chart. When you look at that, is that what you anticipate . It drives the market and we have to rerate the currency. We look at the expectations. This time last year, it was an easy call. 12 months later, where do you stand . There is the lift off. I think it is data dependent. It is the fed and yellen, in particular. We have seen it for two months. We expect a stronger deller dollar driven by the one we have seen with the fundamental drivers. Right now, we are looking for the fed and it should have sterling. We like to have it and not stay here. There is downside. We have a benefit with that, as well as the jonathan thank you for joining us. The strong dollar is the theme. Coming up, we will talk ryanair as profit surges. Jonathan good morning and welcome back to on the move. Were right here in the city of london about 13 minutes into the trading session is tuesday morning. This is how the equity market is shaking up. We rolled over, down by 6 10 of 1 . The dax is lower, despite a weaker euro, despite bond yields lower as well. Lets look at the other asset classes. The euro stays, off by. 60. Looking at crude, 59 a barrel. We are heading for an 11th week of gains. Goldman sachs is still bearish. The german 10 year yields lower by. 06. Lets lift the lid on the index. Ryanair earnings jumped 867 euros. Bloomberg spoke to the company cfo earlier. He says the strategy is Customer Base is working. I would have to say first and foremost it is not about business. It is about families. At the moment, depending on the various airport studies. Rock live approximately 27 are business passengers. It is a challenge to convert 10 of passengers to business. Jonathan lets bring in terry lundgren. Kerry, big jump in profit. Ryanair used to come on its a Customer Service did not matter, they said price mattered. Kerry if you spoke to Michael Oleary now, he would say if i is known that falling on the floor was Good Business he wouldve done it years ago. We have seen pictures of Michael Holding golden retriever puppies and everything. That seems to be working. You have gone initially through many of the things that drive people nuts. They had allocated seating. You can take a next her carryon. Minor things, a smile Customer Service. There was usually a race trumpet that would tell you you had it on time and that is all gone. Jonathan what is the outlook for this year . They are trying to be fairly cautious. They are saying they will improve next year keeping it under the one billion euro mark. That is where analysts think they may end up. Theyre a year end of march so they just had april and we are through may now it is still very early in their year. Well have to see how some of lave out but they are feeling optimistic. Jonathan we are waiting for this aer lingus deal to go through where are we with that . Kari it sounds like things may be coming closer. They have gone to the european union, the government has gone there and they have sounding boards there to see if they would approve the deal. It sounds like the irish cabinet will be discussing it today during a Cabinet Meeting and may come out with something after that meeting. Jonathan busy analysts journalists including busy reporter carrie lindgren. The wave of dealmaking between u. S. Cable companies looks set to continue. The latest is with Charter Communications with Time Warner Cable quite a premium is likely to be paid. Caroline hyde has the details. Caroline they are trying to get hold of a Company Worth more than double of what Charter Communications is worth. Charter wants to buy time warner for 55 billion. That is equivalent to a 14 premium. It could be announced as soon as today. Part of it is cached about 100, the rest would be stopped. Shareholders are wanting 115 in cash and the rest would be stock. The premium, the 14 premium has raised a few eyebrows in terms of rice point. Why offer up that much . The thing itself up is one of the key areas. Quadruple the amount of cable subscribers, 17 million if they do. That would be number two player to comcast. Becoming a Bigger Company gives you scale and leverage into the in negotiations. Yes, it is about size and selling off the threat of netflix. This is interesting, competition. The next billionaire, patrick draw hes came in last week and announced he was actually looking at Time Warner Cable himself. Patrick draw he just did a deal for seven link. Sudden link. At the same time he could be thinking about getting bigger and looking at making an offer to Time Warner Cable as well. None other than George Malone john malone is behind Charter Communications. Billionaire versus billionaire. The competition there is in Charter Communications. This is the second bed. They offered to buy time warner last year in 2014. It allowed comcast to come in and try to emerge. We also know it is not the only one in that area is not the only one that charter to patient is to negotiating with. Theyre looking at subsiding with bright house, you could get a number two cable. An awful lot to digest here. The kick issue is is 14 premium enough to send off this opposition. People are recognizing that john malone and his involvement would help the deal go through. It would actually help fund the deal to about 5 billion. Theres a little bit more money that could be put up. It is difficult for all of them to be that. Lts is laden with debt. Altice is laden with debt. Theyre offering a breakup fee of 2 billion. They are also trying to fend off concerns of antitrust. Weve seen analysts to coming out this morning saying actually from a regulatory perspective, laltice might fit better with regulators than time warner. We understand that the deal will become formal and next day or two. Jonathan i said airline analysts were on alert, Telecom Analyst very busy. Up next, it was a very it was the great bond selloff of 2015 the bond bears are retreating. We will talk about that after the break. A check on the bond market, yields lower in germany. The german 10 year up by six basis points. The 10 year italian bonds up by 1. 93 . The spanish up by four basis points. Why is the swiss tenure on the board . Because crazy town is back. For the first time in april, down two basis points. Coming back with those headlines. Join us after the break, we will talk six income in 2. Jonathan good morning and welcome back to on the move. Lets get to some of the top stories here on bloomberg. Singapore is economy grew more than estimated. Gdp rose 2 in the last quarter which compared to an estimate of 1. 1 . Vodafone is said to be weighing an ipo for its indian business. It accounts for 10 of vodafone revenue. The stock is slightly higher. Apples top designer has been named chief design officer. It is what the Company Calls a promotion. Apple will lead design efforts as they are two deputies take on managerial duties. The central Bank Increased the smallest amount in three weeks. The move comes despite comments that the ecb would increase the pace of bond buying this month. The ecb may not be accelerating bond purchases just yet, investors might be. Traders are the least bearish since the plunge. Is the great bond selloff over . Lets ask. Im going to bring up this chart. If you do not know what you are saying, let me break it down. They call it the right to buy an asset at a particular price, you profit on that. The on that price, a put option you profit on that if the security drops below that price. That is a spread between puts versus calls. Why does that chart tell me that it is over. During the long bond that is been going on for months its skewed towards the cause. It actually twisted and the call was flattening out. There is more demand for downside protection. Now we are seeing the actual topside increase and skew comes towards more of a perfect formation. You can see investors looking at the topside as it is capitulating. That is a we see in that skew. Jonathan the price almost the same as they call. I guess the question you look at the option market, why is that a lead indicator . Tanvir if you are in investor you have liquid coming to the paper. When you have a stress market, you dont sell those bonds. You try to hedge those bonds out. That is why it is critical to look at where the futures are and figure out the options on those futures to see how the market behaves. Jonathan when i look at yields rising and there was a debate in the last month where they said this was the beginning of the reflation trade. What is your view on that . Tanvir that is a huge part of a picture. I put down this recent bond and liquidity. If the reflation trade a going into the summer where we have negative issuing from german paper with large amounts of redemption coupons. We have Oil Prices Going up, it looks like it will top that. We have a huge amount of surplus in your area. We need to eat through that surplus before we see any signs of her inflation. Runaway inflation. Jonathan people getting excited about runaway inflation. When you see bonds lower, do you think that trade kicks in again at some point . The greek issue has been at the forefront. Tanvir today we see functioning markets. Jonathan functioning markets. It has been a while has in it . Tanvir we see the risk increased with the spain antiestablishment party. Greece has been fine with the imf payments. They are not budging on the reliance. Refer real ons are selling off. Core bonds are rallying. We see german bonds catching a bid. It boasts more of a functioning market. Jonathan the yield is below zero for the First Time Since april in swiss. Lets check in on the markets. 47 minutes into the session. Equities rolling over. Session lows there of 115 points. The selloff does not discriminate. The 5100 low by 43 points. Up next we will run you through everything you need to know to watch out for for the rest of the day. A lot of data coming out of the u. S. Among the things you need to watch, i trial for libel reading here in the london. More on that after the break. Jonathan good morning and welcome back to on the move. We have looked at the equity markets, lets look at the other asset classes. The euro point 06 weaker. Euro sterling, just over 70 pence. A weaker euro this morning. Wti 10 straight wings of gains. Goldman sachs stays bearish, 45 by october. The german tenure, lower by zero point 53 . We broke that streak last week yields lower this week as well. Those of the markets we will be watching throughout the morning. Also watching a trial throughout the day. A former trader becomes the first person to face trial for alleged libel reading. He has arrived at court in london. Ryan chilcote is there. Ryan tom hayes arrived with his wife about 45 minutes ago. Somber looking, 35 years old. He was first arrested three years ago, that is when the fraud squad in this come country started investigating. When he got here he went directly into the courthouse. As is his chance to defend himself. Libor as you know is the rate at which banks lend to each other. It is set at about 11 00 every morning by a panel of banks. It is an important set of reference points for the market. 315 trillion of loans and securities are priced at least in part on the back of libor. The indictment, which we have been through many times lists eight counts against mr. Hayes including conspiracy to defraud investors. His counterpart, the prosecutors allege that he effectively was trying to move libor for his own economic interests against theres. This went back as far as 2006 when he was a traitor at ubs and then at citigroup in 2009. Mr. Hayes appeared in court two years ago after he was arrested. He pled not guilty. He was then released and has been on bail ever since. Now he gets an opportunity to defend himself. The thinking is this trial will take two months. Based on experience the first one or two weeks is most interesting. That is when you hear the opening remarks from both the prosecutor and defense trade is going to be very interesting this time. He is the first to appear to respond to these charges over libor. If he is convicted he could be looking at 10 years in prison. Jonathan thank you very much. Throughout the morning and throughout the pulse, that is coming up. Francine we are going to focus on fx. The question we want to asked is first of all, the strategy, how does greece change the way he sees it playing out in the bond market. What happens in greece defaults on international predators but also the other people they own money to. How is that possible. Jonathan and the consequences for ela as well. Bond markets fascinating. The yield briefly dropping below zero again. Risk aversion. We used to talk about a lot, not so much anymore. Francine we spent twice 13 saying it was a risk on a risk off year. With the next year will be different. Make him a end of may and it is still risk on an risk off. It is all of that greece. We are again in this bipolar position where if the markets if there is a big selloff. Jonathan not filling out this morning, i know it will be a topic of conversation for you. Ryanair, does francine a ride ryanair . Francine it is important to see the turnaround in his company. Michael oleary very tough saying we dont care that much about how people travel as long as it is cheap. They have turned around and it is starting to pay off. They are broadening appeal. Do you ride ryanair . Jonathan i wont answer. I set myself up for that deny. Lets check in on the bond markets. It will be a big topic of conversation for francine and the pulse. The germans send it to. 54 . Yields often italy up in italy,. 07. Below zero for swiss bonds. A twoyear increase, yields higher by 24. 69 . Quite remarkable. A lot of numbers. At1 30 u. K. Time, durable good orders. Look out for those numbers. In the meantime you can follow me on twitter. Good luck for the rest of your day. Francine skyhigh profits for ryanair earnings jumped 66 . Cable consolidation, Charter Communications nears a 55 billion deal for Time Warner Cable, what it means for europe. Welcome to the pulse. Im francine lacqua. Greek officials will try