There is divergence with the rest of the economies. You have china cutting rates and the ecb buying bonds. All of this is to inflate the global economy. You have the United States starting to rain back and increase Interest Rates. That is on every investors mind, as is greece. We have the ecb and the imf to getting talks in brussels and creditors going over to athens tomorrow. Lets have a look at the effect on the currency market. It was the first to react to the speculation on the reserve raising rates. The Federal Reserve raising rates. The dollar is down. 2 as we speak. This is dollar versus yen and the dollar is up. The reaction is against the japanese currency at a 7. 5 year high. We are seeing Commodity Markets react. They are up flat at the moment and we have seen a bit of a concern about china overall. It is weaker than estimated and the factory output data from the secondbiggest economy in the world. People would love that in europe. It is slower than people have expected for china. Those are the stocks we are looking at. We have earnings coming through thick and fast. It beat analyst estimates, the Worlds Largest provider of temporary workers. We will wait for it to open. The European Postal Service is not looking so bright. The structural challenges and sluggish growth is not helping rates and delivery. Many trades are getting put through. Eon is up. 5 . Terrible, if you look at it. It is down on the value of assets. Many knew this was coming and the german utilities were hit by the focus on renewable energy, backing away from nuclear reactors. It may have already been priced in for eon. Big moves could be seen. It is in order for 1. 6 billion dollars, plus any interest. This is coming from a ruling. Anna thank you. Mario draghi is speaking at the ecb conference in frankfurt. One of the topics is the effectiveness of nonstandard Monetary Policy. We will bring you the headlines as they come in. What he has been talking about is the expansion of the policy tools used by the ecb. He says the ecb expanded holocene tools to meet policy tools to meet its mandate. Yesterday we had the biggest selloff of the year. In the United States, stocks drop across the board, pushing the s p and dow jones into negative territory. Meanwhile, highs against the euro. Lets talk to the investment director where he helped more than 4 billion in assets. Welcome to the program. Thank you for coming in. The market we have seen this week has a lot of movement happening. It is wiping out gains on the year so far. Europe is a different picture and it is the driver. Is this all about currencies . Guest the virgin monetary policies are being executed by europe and japan. This to virgins is an increase in policy across the board. You see it start off in the currency market and it goes out. Of course the fixed income yields are collapsing on the back of the ecb and more buying. You will see further compression of the yield. The idea is that the Corporate Bond yields will follow and ultimately, lead to the cost of our wing to come down borrowing to come down. The market volatility we are seeing this year, as opposed to this year last year we had volatility because of the extreme monetary easing in the United States. But, i think, for this year, it will be higher and we will see a continuation of that. Anna could you see a situation where the dollar becomes so strong and concerns about corporate valuations become so great that it delays putting up Interest Rates . Ashok earnings have come down from 10 to 2 . Part of it is energy and part of it is earnings in currency having impact. With the continuation of the dollar trend, there is more. In terms of whether the fed does or not, it has to do with the impact of Energy Prices on inflation rates. It pushes further out and, at the moment, the eyes are on the Unemployment Rate which is coming flat. The wages are up 1 1. 5 . We have a lot of hidden unemployment and a lot of parttime employees. To an extent, it means the fed does not have to move quickly of front. The market anticipates the move. Anna so much hangs on where the oil price is heading. You mentioned the conference in frank forfurt. Are you clear what the yields are . Ashok the market and the Banking System has a lot of it and it comes with it sucking it out. I think the Investment Grade bonds and the high yield are going to be the ones bought first. I think that it will open up the excess of capital to households and the cost of capital in the periphery is very high, compared to the cost in germany and france. I think it will be slightly better. Anna thank you. Ashok stays with us. Creditors come knocking. Will the greeks allow viewing of the accounts . We will have more when we return. A sanction of the programs we announced as part of a more comprehensive easing package. This package has been effective in approving the pass through from liquidity injections to the private sector. Bank lending rates to corporations declined in the Third Quarter of last year coinciding with the first targeted longterm refinancing operation and our announcement to purchase bonds. Also, i should add, following the repair of the bank alan sheets to the Balance Sheets to the stress test. Furthermore, modelbased estimates indicates that controlling for others inflations of expectations have reacted positively to the expansion of the Balance Sheet over the past few months. There is good reason to believe that, if our Balance Sheet grows more substantially under the expanded asset Purchase Program, it will support a rebound of these measures of inflation. Our Monetary Policy announcement was largely anticipated. On january 1, 2015, the experts attached 60 higher probability that we would announce a Purchase Program at the january meeting. And, according to various surveys expectations were quite high in automotive flash year. The in automotive last year. Autumn of last year. It has accounted for the fall since august last year. The same applies to movements in other market metrics. The on to that beyond that anna mario draghi speaking. We will continue to monitor that. Stay with us. Anna welcome back. This is on the move in london. We are monitoring mario draghi. One of the things the president of the ecb is saying is that the ecb is aware that the measures they are introducing entails financial risks. The big topic is nonstandard measures that ranks are employing, such as quantitative easing. We have seen some downward pressure on yields as a result in the french market. That is a feature of the trading. 14 minutes past 8 00 and officials are gearing up for a look at greek accounts today. Lets get the latest from hans nichols. Bring us up to speed. Hans the latest from a greek official says that the talks will continue in brussels today. Officials are heading to athens and they are already there. The question is, are they actually going to have meetings . That was the question coming out of yesterday. It does not look like any scheduled meetings. They are looking at the books poring over the accounts receivable and what is coming in and out. It is important in order to entertain any possibility of getting that total. He started to hand that his credibility is on the line and that we can only start discussions when people are welcome in athens. If that remains an issue, it will continue to take. I told the greek minister that it will have to start tomorrow or i will lose credibility. There are questions on how long greeces government can fund itself. Twothree weeks according to an official who refused to give his name. To get the additional bailout money they have to implement the reforms. Before they do that everybody has to look at what the books are saying. Anna hans nichols keeping an eye on all things greek. Lets go back to ashok. You talk about the risk to profits. That is the risk. Where is the reward . The quantitative easing that starts in europe and the move in the currency market, are they going to reap the rewards . Ashok the risk is the of grades taking place in the equity markets and we have expectations of an increase to 12 and something similar for the year after. This has to do with the sales picking up on the back of the fall of the oil price and, hopefully, with the easing that is taking place and the cost of funding coming down, there will be a Growth Expectation raised for europe and germany is going up to 1. 5 . For the eurozone, something very similar is happening. This basically means that, on the back of the lower Energy Prices and the lower Interest Rate structures coming through corporate earnings are going to improve further than the market is expecting. We have seen tremendous buying of the equity market because of the International Funds introducing under waiting. Underweighting. We want to see that before they become overweight. Anna are you worried about what the bond markets are telling us at the moment . Are you worried about bond yields . So many time horizons are on negative territory. Does that worry you . This would normally be a big warning signal. Ashok it is unusual. We have nothing to look at. It is new. We have yet to fully understand and digest the implications of what this actually means. The fact the ecb will be buying bonds means that again, we are in a new era with no full understanding of the consequences. The bubble is going to get a lot larger before it gets deflated. The bubble in the bond market is going to hold all risk markets up. It is higher volatility. Given that the authorities are pushing investors into the high risk part of the oil market, i think, to that extent, they will find support and continue to move up with more volatility. Anna what we are seeing globally is a move towards lower Interest Rates and Central Banks taking action. You furnished me with a statistic that was useful until 6 00 this morning. 55 of Central Banks have cut Interest Rates in the past three months. We have to add in thailand. That makes your statistic out of date. Does that carry on throughout the year . How long does the trend live on . Ashok we will have further monetary easing and inflation as the rate continues and the cut in the oil price continues to feed through. So, i think that the easing is going to continue for a little while longer and the consequences of all of the easing is the economy Growth Expectations improving for the year out. That means corporate earnings can be better on the back of that and the energyrelated part of the market. There is strong support for the Global Equity margins on the back of what is happening out there. Anna thank you very much for joining us. Coming up a shuffle at Credit Suisse. Brady weighs in with his advice. We will be live from zurich with that. Lets go back to mario draghi who is saying the slow down in growth has been reversed. He credits a number of other factors. Mario the effect of the shock will not extend the on 2015, beyond 2015, in part because our measures have decreased the risk of a fax from the fall in oil prices. Effects from the fall in oil prices. It has been revised upwards. Anna welcome to on the move. Change at the top for Credit Suisse. Succeeding brady at the top. At the press conference in zurich, manus cranny was in the front row and had the opportunity to sit down with brady. Critics say he did not act fast enough to change strategy at the bank. How did he respond . Manus he was defensive and would argue that he said aggressive targets. He said there was a target to reduce leverage at the bank to 930 billion. The accusation is, do you need to do and Anthony Jenkins . Do you need to reband rebrand rbs on a global basis . I said, Anthony Jenkins and i caught up and he said that the universal banking model was dead. What does that mean for him and Credit Suisse . He was defensive. Brady the question of Global Banking is different. For Credit Suisse, we have, i think an important franchise that is focused. It is the high end and capitalefficient banking model. They Work Together closely and it is far from a universal banking model. I think that it will be there will be room for different models. There will be global universal banks that work and make the Business Model work. I think that is hard and has gotten harder. That is what anthony is speaking to. It has gotten harder to make that work. There will be more firms that focus on certain areas that they are good at. That is our view. As a result of the crisis and the regulatory changes, you get more focused and specialization. I think that is fine. For instance, we think we have a great segment with higher and Private Banking and institutional business. Making those Work Together. We think we can driver turns in the industry and that is the strategy. Manus there was a sense of relief from brady. He instigated the desire for the succession change. We had a discussion at the end. Which part of his 25 year career did he enjoy . He said, he loved building businesses from the ground up. He was a billiondollar producer when people did not know what a billiondollar producer was an that was back in 1999. Anna thank you very much. Manus cranny in zurich. Putting a price on sanctions. We talk about the ruble, oil and doing business in russia with the ceo of the russian bank. We had to bank. Lets see equity markets. A different story. We will be back in two minutes. Anna welcome back. I am anna edwards. We are 13 minutes into the 30 minutes into the trading day. A different picture from the one yesterday. We are seeing equity markets making up some of the losses yesterday. Lets get the details from caroline hyde. She is watching those. Caroline one of the top at the leaderboard is telecom italia. We are closer to more consolidations with european telecoms. It is a deal that is in the works for a long time. They look to merge the units of the telecoms assets. It means less competition and it is a boon to telecom italia, the biggest player in italy, at the moment. Another player says they may get a majority stake in a network put in place. All of the focus is across European Investment and the networks. Also consolidation. We are seeing it play out. The visual number is wins. They are getting close to the deal that is in the pipeline. Lets have a look at one of the biggest on the stoxx 600. They are cashing in. The family is saying they are selling 12 million shares for 1. 5 euros each. This came from goldman sachs, the sole book runner for this. The family is cashing in a little bit and sending the stock lower. The big one to look for is a smaller stock. It is off by 50 . Cairn industry energy. This is about indian tax authorities. They say they want interest and penalties. This all has to do with transactions made in 20062007. Cairn says they will dispute that. These are the key movers today. Anna thank you very much. 32 minutes past 8 00. Shares are lower for russias secondbiggest lender. It deals with both western sanctions and the high lending rate that was meant to stem the decline of the ruble. Joining us now is the chairman and president , andrey. Thank you for joining us. Great to have you in the studio. Lets talk about the Interest Rate environment. Interest rates in russia are 15 . There will be a meeting to discuss the rates that have been volatile, as of late. Where would you like the rates . Andrey it will be a gradual process and my expectation is that it may make a next step to 14 later this week. I would prefer lower. At least a level of 12. The central bank will be cautious. Anna how much of a negative impact is this having . Andrey very much. We are borrowing rubles from the central bank to pay one billion rubles a year, which is 1. 6 billion. We would compare to 20 when it was 5. 5 . To 2014 when it was 5. 5 . Now it is 15 . It is more expensive. Other russian banks expect a cost of funding. Anna you see a logic to what the central bank is trying to do . Andrey i do. I think what was done had effects on the exchange rate. It was designed to bring the Interest Rate down. Anna you are going to get some more support from the government. Do you need more equity . Where would you get the funding . Andrey we will get it from deposit guarantees and as much as 5 billion into your one preferred stocks. In tier one preferred stocks. Anna is that coming this quarter . We expect that in the next couple of months, we will get it. Anna one of the subjects we must talk about is sanctions broadly and how they specifically relate to your business. The sanctions environment featured a listing of global deposits on the london stock exchange. Are you considering moving away from london . Andrey we are happy with the exchange and we have a Good Relationship with the london stock exchange. Because of the policy, we still do not know. I mean u. K. Treasury and the European Commission who is responsible for the decision if we can convert gdr into stocks. We are looking at other stocks like hong kong, for example. I do not think it is a solution. We will continue to work with authorities in europe. And then, the sections are not forever, i would believ