The m astrategy at strategy. How to get your Business Customer who is runoff to write your document . This is microsoft going after playing catchup, which is putting their office suite on your ipad. You can look at it, but if you pay to use it, you have to 99. How much of this is catchup, how much of that is statement. Putting the product out to the market, sharing the scene with apple. It does take some big steps. Lets not decry the fact that ballmer was working like mad on this project. It just didnt he didnt get it to market before his departure. Of course were watching the italian banks. Yesterday we had results from the fed. The time, the french, spanish ones. This is by the way italys secondbiggest bank. It posted a 5. 2 billion euro fourthquarter loss. Investors are saying that this means theyre cleaning up their Balance Sheet paired they will be in a much better place in just a couple of months from now. The chief executive who replace the previous one in september is trying is now really trying to clean up the Balance Sheet as this ecb review letters in september. We have figures from intel is a the market is focused on the comments from the hierarchy within china. They will use Monetary Policy to show how their confident in keeping growth in the range. That is what the markets want to hear. Theres one point of alert, which i think is certainly worth ringing to attention. As the portion of cash that investors are holding in their portfolio. It is the highest since july 2012. That is certainly something which is worth bearing in mind. At 200 41 fund managers. The highest proportion of cash in your portfolio since 2012. Is that taking risk off the table . That is for more Creative Minds than mine to work out. I think this is a threepronged layer this morning. China is saying they will stick with the growth target. Japan is saying they were worried about retail sales and will go for higher front and stimulus. Was actually very good from the United States of america yesterday afternoon. Equities arising. 70 of their respondents say that geopolitics is the major risk. That is up from 27 in december. That shows you the step change in terms of how geopolitics has modeled it in terms of the mind of the investor. This is about the markets looking at the strategy and what theyre doing. There talking about trying to get costs in this business. Assets of almost 2 billion euros by 2017. Throwing all the bad news and getting ready for the stress test. Eni, the Portuguese Company is selling 70 of the company. Hearing prices of 11 not 11. 95. The rally is up 3. 12 . This is the tiremaker. Net income say missed, but theyre going to upgrade the margins for the year. Given to price it a little bit better. Foreign Exchange Headwinds were one of the issues within the pearly numbers. Francine, back to you. Thank you, manus cranny. Joining us with his view on the markets is the global assets for howmanager much risk is out there. Were talking a lot about the banks. These are stress tests in europe. Then you have the whole Ukraine Russia and story playing out. The one which has not rattled the markets as much as we thought was the crimea. There is very little evidence that there is a volatility pick up. I think markets have taken this in their stride. It hasnt been a massive selloff. Are the markets being complacent or is it just them saying they want to look the on that because youre seeing growth around the world . I think that is the case. If the u. S. Recovery going to be affected by what is happening in russia and ukraine . I think the answer is a clear no. I think that is going to the u. S. Recovery story will continue. There are some orders down the road. Inflation in the u. S. Might be one of them. Some kind of inflation shock might be might put an end to the recovery. The fed is expecting 5. 5 . It might be much higher. What do you think of china . Were sharing some concerns on china. At the same time, the president is meeting with Angela Merkel today. I think they have very strong foreign reserves. I think it is a closed economy. If there was a problem, i think we could do something with the Housing Markets for example. Make it slightly more lax. That would actually stimulate the markets. They have a lot of leeway for policy changes, which could correct any kind of housing collapse, if that were to happen. What is your favorite place for the next couple of quarters . We still think europe is a good place to be. We think about things like investment banks, but also food retail. A recent one we talked about is tech hardware. We think catholics is going to pick him on that is going to pick up on that very sharply. , for example. We will go through all the tech stores that we have seen in the last couple of weeks. Where do you see currencies going and how much they will Start Playing into earnings . This is a trend we saw in the last couple of weeks, is the next earnings seeing season a currency season . It depends on what happens to policy, because if short ranges increase, that is the biggest driver of fx. It could weaken the yen versus the dollar. We are hoping that happens. He will be staying with us. We will talk about tech next. From Virtual Reality to drones and lasers, we go deeper into facebook. Welcome back good im Francine Lacqua here in london. The move. Streaming on your phone, your tablet and of course bloomberg. Com. This is stock that is on the move. It is the Second Biggest Bank in italy. Gaining some 2. 4 but posting a loss. Trying to clean up the balance. Heet at the ecb review therefore, theyre taking this provision ahead of time. This is very similar to what we have seen from the bigger competitor unicredit. Office software for apples ipad has been unveiled. Manus cranny joins us for the details. Manus, it is available to download now. How is it going so far. Number one, fran. Number one comes in that office. Number two comes in at xl. Number three comes in of powerpoint for ipad. The point want to make here is, the first is up there one billion people use office at home to execute their work business. Thats if it sustains. Is this microsoft playing catchup with the business consumer . Is perhaps the most important point. You and i were 3. 5 billion to microsoft. Catchup,out playing francine. There are lots of other apps out there you can download and right on an ipad. It is about mobile first. Is about cloud first. Fournadella it was about putting the customer first. The position is pretty straightforward. Sure that the one billion office users and growing have access to the high fidelity Office Experience on every device they love to use. Ipad, and todays announcement marks one more step in that direction. Microsoftt opening up and jumping that rubicon. A lot of that work was done. Nder ballmer lets talk price. How much does it cost . Do you understand the word free . It is not what i would normally associate with microsoft heard it is a new word in their vocabulary. To the extent that you log onto ipad you a youll be able to look and feel your word actually but if you want to use it, it will cost two dollars. 99. It will give you the product could you can touch it, feel it, smell it, but if you want to work, use it and make benefit from it, it is going to cost you 99 dollars. It is about up selling in terms of access to office 365. All right, manus. Thank you for bringing us the very latest on microsoft. We were talking a little bit about tech. Ericsson and octave tell lucent. What about these Tech Companies . Microsoft still has to reinvent itself. We identified five asset bubbles in the market at the moment. In the u. S. There are certain stocks which are clearly in a bubble. This is centered around buzzwords. It buzz word is big data, social and any kind of tech company which is like that. Of these have written Something Like 200 since their ipos last year with no earnings this year, no earnings next year. I think some of these Companies Just looked very frothy. I think i would much rather buy a company which has a proven earnings record. I think this is clearly a bubble. If theres a pullback and risk appetite, this is a selloff. You have artie sena to some extent with netflix which sold off quite sharply. The ones i would be worried about are the ones which dont have that earnings record. To the Facebook Service world, youre thinking twitter, that kind of company. Where would you put microsoft echo julep it into the possible bubbleesque territory . Microsoft, no, because theyre much more like a utility company. Theyre very boring, their earnings grow slowly. They do this thing which make us all come to work 12 hours a day in front of a computer. Theyre not exciting. It is a dividend company. It is not a growth company. I would say microsoft deftly does have fallen to a category. Is it a little too risky to try to identify potential m a deals . Some of them are not even listed. Some of them are. As an investor, everyone says they wishes there were some tech. They have such high valuation. Is it too risky to try to identify Small Companies with huge technologies that would be on aim . We have a basket of stocks which is an m a target basket. If you want to do that, we can choose them for you, if you want to do that. I think doing that individually is very difficult. Talk to me about bubbles. You have identified a couple of other bubbles. One is certainly the u. S. Tech stocks that look frothy. Scandinavian currencies, for example. Scandinavian companies were simple aaa. They get a hangar after that party after the credit crisis. They have very large increase in salary, but they didnt have a large increase in productivity. , andousing market boomed now is one of the most expensive, globally. The banks have got loaded up with these mortgages. Theyre funded themselves in euros and dollars. I think were just setting ourselves up once rates start for a Housing Market correction in scandinavia. Anything else . We also talked about bitcoin. A lot of journalists picked up on that. They were quite skeptical. We think is a bubble, purely for legal reasons. Russia have said theres only one currency that can exist and that is the ruble. They were not allow a parallel currency. China also has parallel controls. I think that will be the problem. It wont be so much technological, it will be legal. Keep it right there. He went to bring in europe editor david tweed inergy standing by in berlin where the chinese president will meet the chancellor Angela Merkel to talk about relations between china and berlin. It is talked about it is referred to as a special one because they have so many intertwinings. Tdp in germany is very linked to how china is doing. Know, it is special economically. Not as politically. One reason for that is, Angela Merkel has been around longer than any other european leader. She has managed to make he has good relations with the top brass. Shes going into beijing in the summer. Then at the end of the year theres going to be a full Cabinet Meeting of chinese members and German Cabinet members that will take place here in berlin at the end of the year. That is some thing that happened last year. After which, in whole slew of trade contracts was announced. That leads me to the second thing which is the ethnic economic relationships. Germanys absolute powerhouse with a comes to trade with china. 140 billion euros last year. That is more than france, u. K. And italy combined. Yes, very important relationship there, francine. Much, david. So before you go, there are also reports that she wanted to visit that he wanted to visit the Holocaust Memorial with merkel. What he does not goahead . Edison International Story there, francine. It shows you the difficulty of ,aving a strong relationship economic relationship with a country like china but then china tries to do something that looks like a political move. Visitesident wanted to the Holocaust Memorial with Angela Merkel. The president became concerned g ping would you would be china over deadwood the japan would be japan over the head with this. Is very Angela Merkel concerned about being used like that. Getting back to that special relationship between china and germany, we spoke a little bit about china. You believe that everything is firmly at hand. If the government were so to go t. , they could control i think the trade links are very strong. He put into context, if there were some kind of accident in china, we dont think would be sufficient to dl the european economy. To do rail the european economy. If you compare the exports from german to europe with exports to china, the chinese exports are quite small. Effect it would have an to the supply chain, but i dont stimulateould recovered completely. Spain ise a lot of slowly getting better. Other any opportunities in the periphery countries . Absolutely. As we go for value. Go for the banks, for example. Go for the regional champion banks very before or after the hr . After would be better. That is going to cause some kitchen sinking in this reporting season, probably. There is very important. But still, in terms of your upside on the moment, there and japan are the two key plays. To run it off, would you take on the emerging markets . Is physically thinking about these big European Companies that are so dependent on the emerging forets, like dannon example. I would go for the ones which have european exposure. Go with ones with export to europe. Ramming the keys are there with the Ubs Investment Bank nakisa there with the Ubs Investment Bank. Stay tuned for much much more. Jonathan ferro has more. This is a huge market. China is market where trying to be more transparent. You hit the nail on the head. You have a market that art theyre trying to dominate. That is absolutely massive. Minerals are elements for everything we need to make. The problem here is has always been Price Transparency within china. With china are doing is bringing these rare earth elements to an exchange in a similar you can buy copper over the metals exchange. Theyre trying to increase transparency to bring some free market discipline to the market and hope put and hopefully deflect criticism. You are also getting trade disputes between u. S. And china. Yes. Whenever you have a country that produces an element him a commodity and dominates it, theyre going to get attention. To dispute was between the likes of the eu and the u. S. They are essentially saying look, youre limiting our accent our access to these elements. China says theyre having a problem with pollution and the need to conserve supply these elements. The big argument is that in china you can get access to these elements a lot more cheaply than you can elsewhere. A u. S. Company may pay as much as three times in some cases as much as a Chinese Company would pay for these elements. That gives them a competitive disadvantage. It is almost like a dust. The think that is rare about the menace hard to find these elements and concentrated locations en masse. China just dominates the space. Theyre coming under increasing watch over the next couple of years to see how they respond to this. Jonathan, thank you for this fascinating story. It does affect Everything Technology that we use every day. Man ushering in a new era of trade. So i am joined us for an exclusive conversation next. We will see in just a couple of minutes sultan bin celaya him bin sulayem is joining us next. Welcome back to on the move. We are at bloombergs European Headquarters here in london. Then stocks are poised for biggest weekly advance in almost a year. Says these premier government still has policies to deal with economic volatility and cant ignore the risk of a slowdown. The General Assembly has passed a nonbinding resolution saying crimea referendum to join russia has no validity. Members toied abstain against the measure. Member countries are not obliged to abide by the resolution. Property deposits and payments and bitcoin to reach chinese buyers. Australias First Property agency accepts the virtual currency. A spokeswoman said while it hasnt taken deposits and bitcoin yet, they expect to do so soon. For an on the move sultan binis sulayem. Welcome to the program. Thank you so much for coming in. You understand ins and outs of trade in the world economy. Where do you see the strongest growth . We see it in emerging markets. We have seen it in latin america and africa and certain parts of asia. Especially indonesia. Is a straight between china and the emerging markets, or is there any linkage that we see . Europe is growing very slightly. You can see that in your trade numbers. Yes. We are very pleased with europe. , thisives hope stimulation in business. Definitely, china is a major factor in the market and growth. We are comfortable with china. We believe the market is strong, still. Are capacityere constraints in tough market conditions. They were to blame for the decline in 2013. What are the main challenges for this year . In our case he managed to have to link improvement in a revenue. Have a good effect in a profitability because we basically were very conscious and expected the market. This year should be good. Say about the first three months. They were good. I hope the rest of the year will be good very youre quite bullish on emerging markets. Growthexpect any capacity where you are to present . We are in negotiation with Port Development in africa, which is taking time. Once w