Lowest target in 15 years for growth. They say we will aim for 7 how will that affect commodities markets going in. They realize they cannot put growth ahead of everything else. 2 10 of a percent higher and france and theyre waiting for the dax to open always a bit slower in the morning. The euro focusing on what is moving ahead of the central bank and later today mario draghi will paint us a picture of that 1. 1 trillion euro stimulus row graham. What will he be buying and when will he be buying it. Theyre down 2 10 of a percent and the euro has been falling for six Straight Days now. We are currently at one dollar 10 1. 10. After that we are going to 0. 9. We will hit parity next year says goldman sachs. Lets have a look at gold, a little bit flat ahead of that on buying program. Meanwhile oil is down again for a third day actually it is falling down 3 10 of a percent, it had been on an upward trajectory that is about u. S. Stockpiles easing that little bit. We do have a few notable earnings coming out today, top among them frances biggest retailer climbing only 7 strengthening in brazil and argentina. Adidas waiting for that to open as brazil is a little bit sluggish. It is forecasting 2015 profit to rise from 7 to 10 . How will that look . We still dont know. They unveiled their fiveyear sale planned march twice six. There ago adidas popping out at 1. 0 . We see with all of these oil affected companies, as the market is unlikely to recover for at least two years, still pain to come. Think you for that roundup. That is the state of play on the equity markets. The euro hit a sevenyear low as i said to you in the equity markets. A 1. 1 trillion euro war against deflation. Mario draghi is in cyprus and so is jonathan ferro. John, you are out and about this morning, what will be your key focus . I have to apologize because i seem to get the good gigs and you get put on a bridge in zurich and i get sent to the beach. Mario draghi bringing the governing council down to cyprus. Things are better in the eurozone. You strip out these ugly german factory orders, the pmis are firming up and retail sales have picked up as well and qe has already been announced. Today we want the color, what does this plan really look like . What are you going to buy . Duration. Do you really what to buy that sixyear debt . The News Conference will be dominated the questions on the qe plan but the ecb has a pivotal role to play between the nation of greece and their creditors and i dont think mario draghi will be able to complete that press conference without a series of questions on greece and the situations in athens right now. Jon it has taken two years for the Banking Sector it collapsed inside and they were bail outs and aggressive moves by the bank in cyprus and that has been a worry about what might happen in greece and could things happen again . Have things materially improved . I spoke to the finance minister who is more optimistic but cyprus finds itself on the geographic and economic extremes of the eurozone. It is closer to wartorn syria then frank for. Frankfurt. The big bailout, the capital controls thats that crisis and the movie we saw over the last two years, does that come to a theater near athens . Cyprus is not out of the dark days of 2013 just yet. That is the discussion i want to have with the bank ceo and i will do that with the ceo of the biggest bank the bank of cyprus and 30 minutes time. We look forward to that enjoy yourself in the sun. I get ridges in zurich in the snow in the winter time and you get beachside holidays. Something im definitely doing wrong. We will have the rate assertions from the bank of england and the european Central Bank Later on in the day. The boe comes out at noon, dont miss full coverage of the press conference. I will bring you that from cyprus. Lets get an investors take. The deputy chief Investment Officer of fixed income at black rock. There is a story on the terminal which says that european Government Bond yields on average are just over. 5 . The lowest since 1999. European bonds overturn 13 since the u. S. Introduced qe are we all done . Are well priced in . Are we all priced in . There are a number of ways to look at it, without a premium for italy or spain or other countries one thing youll notice is the twoyear term rates are 20 basis points. So one could say the front and of the yield curve is fully priced for quantitative easing that today is a critical day. Well get announcements about the terms of that qe graham and how they will implement it and what formats they will use and will there be restrictions . Today is a very critical meeting for the nearterm direction on those rates. As you mentioned germany they are negative at 30 of the european Government Bonds. It is fair. You are all in love, war and competition. We never thought we would ever would have seen this. These are the dirtiest markets i have ever seen in 25 years. Does that continue . Do we see more . Where does that chase for negativity and safety go . There are a couple of things the question about where we are in the Economic Cycle and the qe program is relevant. The Economic Situation in europe has been improving and today we get the 2017 forecast for the ecb so it will be interesting to see where the forecasts are and that will give us some sense as to whether the rate environment will be more persistent in the nearterm. If qe is the bulldozer of why we are seeing negative rights rates, there are other issues. I looked at some of the forward looking interestrate indicators and they are turning higher. Your job at black rock is not to get lost in the noise of people like us. Where are we . Have we bottomed out in the disinflation story . It is impossible to call the bottom of the oil market what i would say is, the fall in oil prices in america, gasoline prices have come down to manically and in the u. K. Less so, but that has been very stimulative for those two economies. We see that in the u. S. And i think we will see that in the u. K. What we think will happen in the next year is the policy of diversions. Give urgents divurgence. As you develop investment on a fixed income, when you have that eight or 9 return on the Global Fixed Income market that will be challenging, but there is a lot of opportunity as bank policy and Interest Rates start to diverge. A lot of them have started to tame themselves up. If i look at 10 year bonds in the United States over germany it is the widest since 1989, it is 1. 75 wide, will it get wider . U. K. Over germany is widening. Is that how you look about setting up the bond folio, do you do it to bonded differentials . You suggest the widening of the spread that has really been a fundamental aspect of the economy, qe in the u. S. Happened a long time ago whereas europe is lagging. I would suggest in the nearterm you will continue to see that divergence. It is hard for european rates to move materially higher. So we are positioned for that to effectively widen. But i would be very cautious about how much further can your payments actually fall to get to the pricing in of quantitative easing antedate will be really important for the investment thesis. There are a variety of things that are more restrictive and those bond markets are not as deep. Would you concur with that and give me your left field which is outside the normal storyline which is you have a slider slightly outlier in your notes. The view of the positive on market has been a peripheral one. I would say it is very hard to apply fair value analysis because quantitative easing and expectations is so powerful. Portuguese tenyear bonds at 34 , it is hard to say if that is a fair value or not. Given the brett of the program breadth of the program, the amount they buy is extraordinary. That should continue to dampen the 10 year yields but the buying ahead of the market story is we still like peripheral blood markets but we are a bit more cautious. Stay with me, we have another bit of the world to travel across. Next we had to beijing as china drops its growth forecast to a level we havent seen in 15 years. Chinas National Peoples congress is underway. The president s of the growth target at the lowest in seven years 15 years at 7 . This is where the imf thought the benchmark rate would be and the world bank, are we that surprised . To be honest, not really because most of the analysts that Bloomberg Survey and many of the people we spoke to had predicted this 7 target growth rate and we know that the chinese economy has been slowing for some time and this target does allow the policy makers more wiggle room to try and pursue growth which is still a fair amount of growth to target. Along with longterm goals of reform and many of the sectors of the economy. This is what the cochair had to say this morning. We need to maintain policy continuity and keep expectations stable while moving forward with reform and structural adjustment. We need to develop twin engines to drive development. This will and sure that our growth rate is adjusted without weakening momentum and the quantities are underpinned by greater quality. Thereby achieving better quality and upgrading the economy. This afternoon we heard from the and drc ndrc and they said the 7 target rate is the new normal and said this is in line with chinas fiveyear goals. Li kequiang had said that tolerating a lower level of growth was fine as long as there continues to be job growth. Obviously the government does think that 7 will generate enough jobs. Last year the economy hit 4. 7 growth, so obviously they think this year they should be able to create enough jobs as well. 10 million jobs is the target for this year, the same as last year. 7 growth, many nations would be very happy with that and china is the new normal. They have also set some other targets and the budget deficit widening slightly to 2. 3 from 2. 1 last year. Thank you very much. Scott field is still with us he is the deputy chief Investment Officer of fixed income at lack rock. She was talking about china and it is not exactly a rocking piece of news but one thing that consistently catches my eye is that china and japan are both huge holders of u. S. Treasury but that complexion is like a moving feast at the moment. What is it that sticks out for you in that story . Japan is an interesting mix because you have the central bank and the government working together to implement the plans. There, they have much more coordination. So in my mind that means the policies are very powerful. What they have done in is driven jgb rates very low and what is interesting is in the last several months we have noticed an increase in volatility which is a very interesting feature in the market is what that suggests is there may be movement out of jgbs into other markets. After member they are owed predominantly by japanese investors. When you start to see increased volatility it would suggest to us that there is more investment being made out of jgbs into international bonds. I was looking at the numbers on jgbs japanese Government Bonds, a almost doubled in yield. Quite a quantum move in terms of the market has that trajectory finished or do you think there is another substantial substantive move . Is the money flowing out . Because yen is strengthening up 5 since the beginning of the year. The way you think about yen volatility is very relevant. If you start with a yield that is only 40 basis points to begin with and then it moves five that is a big move. What happens is jgb is starting to exhibit treasurylike volatility. I would suggest that investors are moving out of jgbs into a whole series of different assets. I think u. S. Equities and european equities and Global Fixed Income areas income. Everybody in the newsroom i like to think everybody has a sevenyear itch. It is a six Year Anniversary for zero point 5 , when will they pull the trigger in rising rates . There are a couple things we look for. The first is the fed has to move. Mark carney is not interested in leading the charge of higher shortterm rate. Number two, he has to recognize the strength of the u. K. Market. What is important is the number of vacancies is smaller than the number of job seekers for the first time in many years. The last time we had that relationship of nine vacancies for 10 jobseekers the basis rate was nine. In my mind, given the Employment Situation in the u. K. And the u. S. Trajectory, the bank of england should follow and i would suggest august is a bit of an early call but that is consistent with the Federal Reserve moving in june and the bank of england in august. Great to have you with us, the deputy cio of fixed income. Coming up, mega m a in the foreign sector. Details next with Caroline Hyde. In a lastminute twist, drug Company Abbvie moved in. Caroline hyde has the details. So they came in at the last minute but there is good reason for this deal. 244 times pharmacyclics net income last year. That is the biggest pharma deal of this year. They managed to come in in the last minute and barge Johnson Johnson out of the way and snap up the company, but why . It is all about the drugs they produce. In particular pharmacyclics makes one that is so good for Cancer Patients because it avoids certain serious side effects when youre having chemotherapy. This is a stellar drug and analysts say this is one of the bestselling cancer drugs of all time. No wonder they were fighting so hard. Already Johnson Johnson have a deal to make this drug with arma cyclics, they didnt go with pharmacyclics, they didnt go with her partner. Nevertheless, it boosts abbvies pipeline. This is one of the first mega deals of 2015. They have been knocking on locked doors. Shy a was the deal door they have been desperately eating at but that deal got canceled because the tax efficiencies didnt work anymore. They changed some of the rules and no longer being in ireland wouldve helped but only a mega deal. Coming up, the ecb is out on the road in cyprus and we are, too. Jon ferro is there. We speak exclusively to the ceo of the bank of cyprus. Stay tuned. Welcome back to on the move. Equity markets are up and running and they are in good form. You have the dax at 11,451 second in command is the paris market 49. 42. The devil will be in the details on the trillion euro span from quantitative easing to the European Central bank. Lets get to Caroline Hyde and see what stocks she has to watch. Top of the leaderboard is hunting plc up almost 6 . The picture is not all that pretty and theyre saying the rapid decline in the oil and gas injury industry this is an International Energy services provider. When Big Oil Companies cut back their spending they hit but they are managing the situation well. Expected dividend ahead of expectations. Overall they are tackling well at the debt is coming down and theyre boosting free cash flow. The stocks are rising on that surprise boost. Meanwhile avivas top of the leaderboard. Up almost 5 this morning. The u. K. Insurer in the midst of buying it surprises investors this morning, increasing payouts and raising dividends by 30 and also reported for higher profit up 6 . Lets get to the laggers. This is a private Equity Company selling some shares, not just any amount but 18 million shares. 22 of cbcs overall holding. It is profiting and taking profits in the industry and it falls with more supply and the market. Greece is in the spotlight today. A lastminute deal was agreed between greece and its creditors. Today, the ecbs meeting not in frankfurt but in another nation cyprus. Jon ferro is standing by on location today with a special guest. Thank you very much, i am pleased to say i can bring to you exclusively the bank of cyprus ceo who joins me right now, great to have you on the show this morning. The guys behind us, the ecb they have unleashed a qe row graham will give us details today. They say this is really about getting the bank to lend. I think it will have little impact on banks initially. But equally we have a very simple problem problem which is we have a very high level of nonperformance and we need to get people back to repay their loans and put framework and place to make sure that occurs. We of course want to lend so lets see if it works. For you, for the bank of cyprus the npi is going up is it getting worse . The definition is a trap. Things get captured in it and they dont get released it is a bit of a hotel california. So your productive asset statistics can get worse. We are not calling it a trend just a lot of active management to stop it exploding further. Some would argue that a culture of people not paying mortgages or loans, there are no enforced foreclosures in this country. The government has been talking about bringing that law in for a while now. The Government Finance minister said it could come in a matter of weeks, what is your message . We have to get this in place. If we dont put the proper framework in place and make sure the right insolvency practices are in place we will upgrade the foundation prosperitys. So my message to the government is put this in place and lets Start Talking about the future and not make the mistakes of moving the pieces around the board and not making progress. They watered down to basically nothing but cyprus has counsel controls, one euro in that cyprus bank at one point was not the same as one euro in a german bank. If greece has capital control from what you have seen how bad does again for the economy . We widened the gates efficiently on capital controls for them to be almost irrelevant in this context. It is dangerous for an economy and it isolates its isolates it from the normal functioning economies. We have seen quite a few billionaires come out to cyprus the likes of dan loeb taking stake in cypriot banks. We can see this bank of cyprus as a part of the recovery . These guys are investors investing in the equity of the bank and they believe that equity is valuable in the future a