Exchange market we have seen according to some of the agencies we have watched since august 2013. Your tian European Equity markets are tanking. We lost 2 of their value yesterday. We should keep an eye on the banks. European equity funds have got a small bounce for them. That will give you a little bit of a flavor. The minor response quite nicely in australia. I think this is a story of do what you do best and if you on a pipeline, sell it. That is what bg are doing. They are selling their apa pipeline in australia. They provide a natural gas project there. Theyre going to sell it for 5 billion post tax. Theyre looking at a profit just under 3 billion. When on to read bank of americas recent note on liquefied national gas. Multiyear markets may have an uptick. Multiyear bear markets on something they bet significantly on. That is bg. Global equity actually making a onemonth low. That asian news was very much a thehup session, mirroring 2. 2 drop in europe. That is the bg start. Back of the japan story, not necessarily tied together. It is structural change over at rbs. Credit fixed income positions to go. 30 representatives will be left. Caroline hyde will take you through the story. Standard chartered down this morning. They will remain under investigation from the u. S. Regulators on site for another three years. There is more new information that they may have been unlawfully processing dollar transactions. This is a risk. This is a risk for them that falls more issues. I can only talk for so long. You can come back to this. These are the two greek strauchs stocks, biggest drops in greek stocks since 1987. The point is whether you believe there is a momentum behind a seeding to power and what that might have an impact to the debt, or something that they will talk about, but nothing once to say it, but what is the statistical possibility of greece leaving europe . Back to you, john. We are waiting for greek stocks to open, but lets get erday,o that move yest the greek equity market down 12 . We did not see that even when it was on the brink. Biggest drop since 1987. Our next guest has not just downgrade his look of growth in europe, he is downgraded Political Leadership at all. He is wayne barrel. The issue of leadership is in focus this morning. Not just in greece, but also in france. Asre joined live from paris the nations economy minister is proposing a bill that will jumpstart an economy that has slowed to a virtual halt. What is in this bill and could it signal any meaningful change at all in france . I think it is meaningful change, just not a revolution. That is the way to look at it. You have over 100 items in this bill. Tweaks,lot of small things like sunday shopping. Changes to labor laws, its speeding settlements between the disputes between employees and employers. Removing the threat of jail to executives and employers who break labor law. It is a lot of little things. It is a step in the right direction. It is something the French Economy knees. Economists say will help, but it is not a revolution. When you talk about change in europe, we also in we often talk about resistance. Is there likely to be any resistance today . I think you will hear a lot talk. Itical the mayor of paris said she is not in favor of sunday shopping and the mayors have some sway in this matters. I think the overall bill is likely to go through more or less intact. Measures, less talked about on the labor lawfront, for instance, getting through, and that is important. Been very much designed to avoid a big confrontation over something symbolic, like the 35 hour work week or the minimum wage, which would have risked bringing people into the streets. A lot of the stuff in this bill is too technical to really get the population excited and protesting. Joining us live from paris. Thank you up very much. Bowers, thein wayne ceo at Northern Trust asset management. He helps manage 900 million in assets. Political risk in europe. Downgraded your view of Political Leadership. You guys can talk up change. Any confidence they can deliver . The french release is a prime example. A lot of things in there are technical, but they are positive and common sense. One would have expected that to be drawn out and presented 10 years ago, 20 years ago, not now when we have just gone through a significant financial crisis and pretty significant austerity. For leadership perspective, we expect the leaders to step up and push forward and perhaps not talk down the economic view from a european perspective. The clock is ticking for france. Ek e is a president ial lection in 2017. How do they turn it around in two years . Is not just restricted to france, the window of opportunity governments in europe have to implement structural reform. Draghi has been clear on this, that the ecb can only do so much, and creating the conditions for asset purchases is one thing, but he wants the economy to move into growth mode. I think the politicians need to step up and take more leadership for and to grow the european a economy. It is fueling radical illegal political movements. We have not seen a collapse like that since 1987. That cant be right. Surely in 2011 we have a debt that was that bad. We did not. What is going on in greece right now the concerns you . From an overall greek perspective, we have always been very clear that greece is not the same as peripheral europe. It is in isolation for lots of different reasons. It was a move of greek risk backing to be for referral peripheral. Toating greek as similar ireland, italy. What happened yesterday was a disconnect from people saying greece is different. It should not be treated like the rest of the peripheral. It has a significant risk attached. Point around far left or far right political votes is correct as well. We see a shift away from centerleft, centerright. Political opinion and populace folds into the farleft and fourright. It can create issues in implementation. We saw that in sweden a few weeks ago where we had this Great Coalition that is only lasted a couple of months because they cant get the budget through. They get the vote, but the implication of policy can be difficult. Lets talk about money and where to push it. You manage a decent chunk of change. Where you putting it to work in europe . From an overall allocation perspective, we are heavy in u. S. Equities. For photo, we have measured risk as well. From a european perspective, we are looking at core having a prime home. Also looking at the transparency of political stability and government policy. Some of the fiscal and changes we have seen are careful. Some peripherals have done very well simply because they have taken a lot of pain in the early days. We would note with interest from a positioning perspective is that you could have a barbell approach around germany and some of the peripherals to average out the risk while maintaining core liquidity and safe haven. I want to go back to u. S. Equities. When i look at the treasury market, the treasury market next year is almost a mirror image of the course of the treasury course this year. It turned out to be very, very wrong. Nexthe call to be underway year the right one . We are over high yield. There is risk with the income allocation. The other aspect about what happened this year and what we expect next year is the investor around theetting nominal value of fed hikes. The bonsai was pricing in another collapse in bond price and an increase in yield, but it did not happen. Investors have to take note about the smooth exit of tapering, but the introduction of more qe from the bank of japan. That has to affect risk assets. You could argue that you would not necessarily expect to see a significant drop in price and increasing yield because you will have higher behavior looking for yield to you have a support function there. We are going to talk about not the ecb, the peoples bank of china after the break. We will talk about chinese investments. Chinese data disappoints. Almost 3 ai closes up this morning. We look at the reason behind the rally as on the move returns. As we head to the break, here is the picture for you. Losses around 2 3 on the periphery. A rebound today. The dax in frankfurt is up. Welcome back to on the move. I Jonathan Ferro. Ing live on your phone, apple tv, amazon fire tv, and on the television. A little bit of a loss yesterday. You see it on your screen. It was pretty sizable. Everyone talking about the economic fundamentals support this rally. This morning, we got a little bit of data. Secondlargest economy drop for the 33rd month. Consumer prices rose at the slowest pay since 2009. Tom or lick joins me now. We can talk about whether this will scope a move from the peoples bank of china. Lets talk about the date of first. What is driving the deflationary pressure . There are two factors at work. The first one is good news for china. China is a big importer of energy. International i will International Oil prices are down. That is going to give a boost to profit margins. The second factor is more troubling. China is paying the price for its years of excess loan growth and excess investment. The legacy is showing up in overcapacity across the industrial sector. Combine that with weak demand in this is why we are seeing the deflation pressure in the banking sector. If i was looking at the ,hanghai, if it had ears it is listening to the prospect of another rate cut from the central bank. How does this play into the outlook for Monetary Policy . Chinas centralbank cut Interest Rates in november and they described this as a tactical move. What they said was lowinflation had push the real cost of our wing for businesses up and that is why they had to cut rates. The fall of Producer Prices in november already more than offsets the impact of that november rate cut. The real cost of borrowing for chinas businesses is now higher than was before the cut rates. This focuses attention on what is coming next and raises expectations into 2015. We are going to see more Interest Rate cuts from the peoples bank of china. I think that might be one of the factors underpinning some of the resurgent buying that we saw on the shanghai in composite index today. The other factor is that there are rooms in the market that we have a more direct intervention from the peoples bank of china, an injection of liquidity. I think it is that which is driving the turnaround ensures we are seeing today. Joining us from bashan tom orlik. Now, you have been to china recently. You can look of the data and continue one story. You went there. What did you see . For a more sanguine understanding of the growth picture. Central policy from the government is on a mission to drive out corruption. A cleaner and greener growth story and government policy is having a negative effect on growth. You would expect that. Psychologically, the Chinese Government have an issue around the seven numbers. It wants to produce a 7 growth number. If you go under the covers and scratch at the surface, investors tend to be more sanguine about the growth number at 6. 25 or 6. 5 . The employment picture seems to be better than we would expect or anticipate. It tends to be a better and more fuller employment picture. If you think one of the risk of outese government coming with less than 7 growth number, the argument being social unrest, you need the sustainable of a of growth to ensure you have employment. If employment is looking better in terms of rural and urban employment opportunity, perhaps it takes some of the risk off. Lets talk about the markets. We can talk about old china versus new china. Old china is the rate cuts and stimulus. New china is the restructuring. , is thathai comp trading on the belief that old china is the running the economy . We can talk about a stunning decline in greek equity. The move over the chinese stocks in the last month as an something else. It has. We have seen significant volatility. One of the aspects we see from chinas point of view is that as they have developed economically, the Capital Markets have not caught up with that. In terms of the underlying liquidity to the market, the ability to buy and sell stock. Those who have opened have gained access to the Chinese Market and are restricted from selling. That is not good news from a price perspective. We would expect to see more development of the Capital Market system from chinese authorities to try to match the economic development. All you see when you look at the isolated stock indices is a level of immaturity and under development in terms of price volatility and liquidity. Very quickly, that is not going to end well. What is your view . Is not, i dont think. The picture is you tread with caution in markets like that. There will be an increase in volatility. Liquidity is in both ways, investing in and investing out as well. When bowers of Northern Trust asset management. Thank you for joining this morning. Thanks cutback. Reports of jobs at rbs and deutsche bank. Welcome back to on the move. More job cuts at rbs. Here with more on the story is caroline hyde. Not a u. K. Story this time. A japanese story. Theyre retrenching in terms of their international presence. They have got to cut one million pounds. This is one way of doing it. It is about japan. They are no longer going to be a primerate dealer when it comes to japanese government on government bonds. They are cutting 200 jobs. It will be barebones left in japan, just 30 people trading fixed income to service their clients. The dealership will no longer be a primary dealer and they will inform the Financial Services agency as soon as today. Next week, the clients will be let known. Clearly this is just a global to entrench in global areas. They are not the only bank not taking money. We have ubs that has been losing money for two years now. It is a tough market. Not everyone is pulling back from japan. 200 jobs within japan. The market can be quite brutal. That is a dip in the ocean. Another small amount of jobs, but interesting. Deutsche bank are losing 10 job when it comes to credit default swap trading in london. The area of supreme growth before 2008, before the lehman collapse. Trade, assuming what the riskiness is of a certain corporate. Deutsche bank had been exiting trading of individual credit swaps for individual names. If you wanted to trade rbs, you cant do it on an individual basis. You can trade indexes. 10 traders are going to be moved or lose their jobs overall. They are shifting the focus. They are looking at the Corporate Bond market. There is more activity. They are to derivative indexes as well. They say they are very much focused on credit indexes. That is what the spokesperson said on december 5. Clearly there is a trend. Regulation has come in. It is more costly to trade credit default swaps because you need more capital to protect yourself, to be able to make the market that much more liquid and safer for those who want to trade. The size of the global derivative market shot 22 . An interesting fact, it is still over 17 trillion, this market. That is bigger than the u. S. Economy. Is still a monster. That is it for the banks. We will talk about the big oil majors. Bp is going to be hit where it hurts. The oileen where with price. How does the oil giant do with crumbling crude prices . Welcome back to on the move. I am Jonathan Ferro in london. 30 minutes into trading day and this is how things are shaping up. Ftse 100 up. 5 . The stoxx 600 in europe, also a nice little game. A selloff yesterday, down across the board. A rebound today. You could call it a little bit of the bounce. We are up 100 points on the dax. Lets look at one of the u. K. s top winners. They are trading up more than 6 at the moment. They rent out equipment to homebuilders and alike who dont perhaps have the cash to be able to buy their own. Rental equipment is doing pretty well. Full year results will be ahead of their previous forecast. They are increasing how much they are going to be spending in order to keep growing the business. Jeffreys group saying confidence of the company in the first year of a multiyour supernormal. Also saying the Company Continues to show a significant market share gain. Tops the list. Co up 4. 2 . Australia extends a contract worth about one billion pounds. Fiveyear contract with the dip the us try in department of immigration and border protection. They will continue to provide onshore immigration detention services. One of the top performers this morning. On the downside, the worst performer was down sika, down a was 2 . This with a stock is in the throes of a management overhaul of potential chaos. 1. 8a company billion is what a French Company wants to pay for them. What is the stock continue to fall . The main people who want to back the sale is those that are related to the founders family. It is the family that wants to see the sale go through. The management does not like it at all. The management are challenging it and threatening to quit if the sale does go ahead. Inbulent times for sika switzerland, a company off by what more than 1 . They are the stocks to watch this morning. Chinese factory gates deflation deepens. Consumer rises slow at the since 2009. The shanghai comp dropped on the heels of the data but has made up the losses, closing up nearly 3 on the day. Yen gains again against the dollar as stocks fell in japan. 2. 25 . Kei fell brent resumed losses this morning and deb upi erased gains from the wpi erased gains from yesterday. Crude could fall to 40 a barrel if solidarity among opec members falters. Aspects, theenergy 12member group may have to call an extraordinary meeting in the First Quarter if Oil Continues to fall. Bp is amid historic lows and oil prices. The company has announced a restructuring program. What can we expect from their meeting . Anding us is the single Oil Gas Analyst here at bloomberg. We will get to oil in a minute. Lets talk about the day today. Bp are going to talk to investors. What can we expect . The first thing is how do they see russia . How do they feel about the russian engagement . The south korean pipeline has been counseled, more or less. Canceled, more or less. 20 for rosner. How will the russian sanctions rosner f rosneft. The mexican oil spill, what competitions consequences will have . The third point, the last thing they said was they intend to