Hermes, lets see if we got an opening price. They are going to pay a possible five euro special dividend. Their numbers actually beat. We will keep an eye on hermes. Down 1 . You are getting the special dividend of five euros, but the margins are what the market is focused on. They come a bit lower because of currency pressure. When it comes to those deals lets see how telefonica is opening. 10 billion pounds worth of a deal done. 9. 2 5 billion pounds will be paid to them. And another billion pounds in stock trades. A great deal of speculation is perhaps already in the price. That way profit bellway profits up and the dividend remains quite a bit ahead. Almost 25 over the estimate. If you are a shareholder, you are getting 25 pence, that is 25 better than the estimates. They are saying everything is going pretty dandy. Airbus is obviously the maker of the plane involved in the tragedy in the southwest of france. They also make an announcement that they are selling part of their holding in aviation. Those are three individual names that we have a focus on. Keep an eye on the real. This will begin trading on the session as new york comes in. What you have is the Brazilian Central Bank saying we are not going to defend this currency. This is the second worstperforming emerging market currency overall in the past 12 months, the worst being the russian ruble. Come 8 30, i think these names are going to be in the fray. They are not trading yet. National bank of greece and alpha. We will see how the greek market opens later on. The European Central bank for illegally preventing these banks from buying greek government tbills, and therefore closing down access to finance for say burress and his party for tsipras and his party. We will keep an eye on greece as the day rolls on. Back to you. Anna thank you very much. Lets get back to one of our top corporate stories. 3g capital is in advanced talks to acquire kraft food and merge it with ketchup maker heinz. Caroline, good morning. Run us through this potential deal. Caroline 3g capital getting its hands on what is renowned for philadelphia cheese spread Maxwell House coffee kraft. This could be bringing its power thereto then merge with heinz. It already owns heinz, 3g capital with Berkshire Hathaway. They could combine kraft and heinz to make a juggernaut making 30 billion per year. That could cost the overall market valuation of kraft as it stood before the deal was speculated in the press, 36 billion. Lets take it to a the dream team seems to be here. Berkshire hathaway and 3g capital, they would be working together once again. Two years ago, they bought heinz together. It was Warren Buffett that helped finance the deal of 3d capital getting into heinz. Last year Berkshire Hathaway again teaming with 3g capital to help burger king by tim hortons. That is the canadian coffee and doughnut company. That merger producing a Much Bigger Company now known as Restaurant Brands international. Berkshire hathaway knows his stuff. They were a longterm investor. At one point, they were the biggest shareholder in kraft. They didnt really like what was going on with the cadbury buyout. Warren buffett said the two deals were dumb. But it looks like his appetite is being whet again when it comes to kraft. He wants to be able to create this juggernaut they are talking about maybe mix your basques well house coffee with your baked beans on toast. The deal could be announced this week. The key question, price tag. The market capitalization of kraft is currently 36 billion but the shares afterhours spiked to a record high, closing at about 16. 5 as you see on your screen. Now just inches away from that peak number, just shy of 16 . The question is, what will be the price tag . We are hearing 40 billion. That is only a premium of 11 . Back to you. Anna thank you. My children are always telling me about the virtues of combining cream cheese and catch up. Im not sure im convinced. Thank you with the latest on that potential megamerger. Lets get an investors take. We are joined by john bolton. Good to see you. We are talking about m a. Where are we in the m a story . Do you think it is indicative of something we are seeing more broadly . John we look at the broad trends within m a. Much of what weve seen in corporate activity has been large firms, large deals. That tells us theres some confidence. Theres some confidence among larger corporates which is quite an interesting gauge. Borrowing cross are easier across the corporate universe. There is some confidence in corporate boardrooms. What is interesting for us at the moment, weve not seen much of a pickup in Smaller Company corporate activity. For us, that is where you get the grassroots exuberance kicking in. We are entering into a cycle of more corporate activity. We gauge the u. S. As coming into midcycle. I think we are still some way off on that kind of exuberance that really permeates all the way down through the corporate universe. Anna it seems to have been a long sweet spot. When we start to see the u. S. Recover and some m a deals coming through, people say there is a sweet spot before rates go up. Rates still havent gone up. How long do we remain in this low Interest Rate environment austin mark environment . John probably for some time yet. Even on the feds own projections, rates will barely reach 3 by 2017. Market projections currently around 1. 7 . Weve got the boj and the ecb seriously buying bonds in the market. Thats keeping longer dated yields the press. This is a low Interest Rate cycle. We do believe this will be a longer and flatter business cycle. Lets not forget, it was a very deep recession. The recovery trajectory is probably going to be longer and flatter. To the still midcycle, probably not unreasonable. Anna in terms of investing, does it make sense to go after businesses that are domestically focused . John yes. Youve got to remember that the u. S. Economy, only 13 of it is exports. The vast majority is the consumer. Weve got the boost coming through from weaker oil prices. We are beginning to see signs of domestic confidence pick up. The u. S. Is on a solid recovery track. Weve got no reason not to think that america will not continue to do well over this year. Where is it going to do well . Probably the consumer. Dollar strength is a headwind for exporting companies which make up a greater portion of the s p than they do of the broader economy. Domestic u. S. Is definitely a sweet spot right now. Anna is there more to come . John youve got to love historically. From 19801985, we had a dollar rally of five years. 19952002, 7 years, 40 gain. Anna john, thank you very much. Up next, Independence Day in greece. But perhaps in name alone as government bills stack of an money runs out. Anna welcome back. This is on the move. On a day that greece celebrates its independence from the ottoman empire, the nation may be bemoaning dependence on creditors. The ecb is said to have banned greek banks from increasing holdings of death. The government is trying to come up with money anywhere it can. For more on the latest, we are joined by ben sills in athens. Good to see you this morning. How cashstrapped is greece at this moment . Bill hearing nothing here. Anna seems as if ben is not hearing me. Wonder if we will get that another try. Looks as if we have lost him. Lets instead talk the john bilton from j. P. Morgan asset management. The failings of modern technology. Lets talk about greece. Is this playing out in a worrying direction for you . Are you managing to keep your concerns contained . John the thing to remember about anything to do with eurozone, whether it be monetary policy, political policy, it is all about keeping the sides talking. The positive is that the sides are talking. Greece does face a crunch in terms of its current financing bailout package. It is about 7 billion euros available still in it. Runs out sometime during april. Certainly, there is a pinch point coming up. The negotiations are in play and we are reading a lot about how german politicians are becoming a harder line against greece. At the same time, we are seeing some suggestion that there could be minor concessions coming through to keep greece on track and keep negotiations going forward. I think while they are talking we remain reasonably comfortable. Anna is that the markets working assumption, that if greece stays in the eurozone keeping it in the eurozone is the number one priority for the germans despite all the rhetoric . John i think what the market is trying to do is weigh whether it is better to have greece in or out. Right now i think the jury is out. Will we have the same level of contagion as we had back in 2012 . Probably not. Thats why we continue to see yields in italy, spain, and other periphery nations tighter against german bonds. The Crucial Point to focus on is the degree of contagion. The market seems relaxed about that. Anna lets try to get out to athens. I hope you can hear me this time. How cashstrapped is greece at the moment . Then ben we are getting down to the last coppers. No one knows exactly how long the greek government can last but we are seeing reports that they are pulling cash from public companies, essentially having to scramble together every time there is a major payment. They need to make 1. 5 billion euros of pension and salary payments before the end of march, then they have Treasury Bill redactors coming in april. There are several hurdles coming up which look extremely challenging given the lack of funding. Anna what consequences are therefore the broader economy . It sounds as if there could be severe consequences if this is where the money is coming from. Ben we are already seeing that the economy was growing and those trends have reversed in the last couple of months. As the government scrambles around, pulling money from these different parts of the public sector, it is sucking the life blood the rest of the economy, which is exactly the opposite of what greece needs the government to be doing at this stage in the cycle. Anna thank you very much, ben sills joining us from Bloomberg News in athens. Still with us, john bilton of j. P. Morgan. Lets talk about the european picture more broadly. Some of the data has been improving when you look at pmi, credit formation data. Are you optimistic about europe . John broadly speaking. The interesting point is that we have ecb qe happening incidental to a turnaround in data. Slightly better consumer confidence, a little bit of momentum starting to pick up in terms of industrials. Generally, youve got two things moving in the right direction, policy support and macro data. I think what is important to the watching is the degree to which we get a pass rue from the weaker euro into corporate earnings. Europe is exportheavy compared to the u. S. At these kind of levels, it should start to feed through and give us earnings growth. That is positive. Anna you suggest there is no direct link between quantitative easing and the recovery in european data. Do you think doctorates will be written in the future on whether all the talk about quantitative easing had anything to do with turning the european economy around . Ben i have no doubt it will keep the professors at harvard busy for decades. It is not clear the degree to which keeley directly affects to which qe directly affects markets. What is important is confidence in the central bank. The ecb had to tackle deflation. They had to tackle the lack of competitiveness of the eurozone and theyve done so in very decisive action. This is certainly boosting the general sentiment that we see around the eurozone. Theres also a portfolio of fact. As the ecb sucked bonds out of the system, that money has to leak somewhere. Theres not a big credit market, so that tends to go directly into the equity markets. That tends to create a little bit of a flow support for the equity market. Anna are you investing in the european consumer at the moment . Ben we would see europe as a little bit earlier in the cycle than the u. S. We are actually a little more minded toward the cyclical end of the economy. We want to be a bit more defensive in the u. S. If we want to add cyclical risk it is the markets like europe and japan where we are able to add that. Anna john, thank you very much. John bilton stays with us. Still to come, cold feet in britain. A recent poll shows fright from protests goes back to the mainstream. We will discuss that when on the move returns. Anna welcome back to on the move. Lets bring you uptodate with bloombergs top stories. Airbus is cutting its stake in dassault and using the funds to boost growth. The disposal has a value of 1. 9 billion. The move is a continuation of the airbus reduction of its holdings in dassault. Hutchison bought 02, paving the way for the creation of the biggest u. K. Wireless provider. Telefonica expects the transaction to be completed by june 2015. Brazil is scaling back support of its currency. Sales of new Foreign Exchange swaps will end this month. The program that began in 2013 wasnt enough to prevent large currency swings. The real has fallen against the dollar in the last year. Lets bring things back to the u. K. As we approach them a general election. It seems support for the protest parties may be waning. Ukip is losing steam as voters turned back towards the mainstream. Labor and conservatives are tied, but have each picked up a larger portion of the vote. John bilton is still with us. We are still talking about the major parties being 35 of the vote each. Markets are pretty nervous. How do you approach may 7 . John i think youve got to look at the fact that we are coming to one of the most uncertain elections in decades. With jabber way whichever way the landscape looks, it is difficult to make a clear projection. People by the u. K. Because of political stability. If you start to question that then you need to build in some level of caution on the u. K. Assets. With this uncertainty around the election outcome, weve got a degree of caution on our exposure to u. K. Assets notably the pound sterling and the u. K. Equity markets. Anna what is driving the pound at the moment if not the politics . Is it the economic recovery story . How are all these things meeting each other in the middle . John youve got to look at the u. K. Against its trading partners, against the dollar the u. K. Pound is reasonably week. Against the euro, it is strong. That is probably a bit of an issue. Our biggest trading partner is the eurozone. We have an overvalued currency a current account deficit approaching 5 6 , and weve got political risks. But those three together and bear in mind, history doesnt tell us that it ends well for sterling in those circumstances. 1975 and 1991 both saw political question marks and a significant deficit. Under both those circumstances, we saw the pound we can significantly. Coming into this particular election, weve got the ingredients to be very cautious on pound sterling. From our point of view, we would be approaching this election with a degree of caution. Anna you are putting 2015 in there with some very chaotic times in u. K. History financial history. Is that what is at stake here . John when we look at it, we look at the valuation ofs hurling which is strong against the euro, and we look at the current account deficit, which is wide, and we look at political certainty, which is low. Those three together give us a degree of caution. Are we going to see a crisis in sterling . I think markets are supportive at the moment. Thats probably not a major part of the calculus. Is there a tail risk that sterling weakens given the current account picture and politics . It is absolutely something that an investor has to be considering. Anna thank you for joining us. John bilton. Coming up on the program, we turn east and talk to the executive director of China Construction Bank international. Stay with us for that. Anna welcome back to on the move. We are 30 minutes into the trading day. Lets see how things are shaping up across the equity markets. The ftse 100 choosing to go its own way up by 0. 1 . The other markets, flat or negative in europe. Lets get some stockspecific stories with caroline hyde. What are you watching . Caroline im going greece and travel. We are looking pretty strong for the first half of the year. We are on track to improve results year on year. Shares up some 2. 5 on the back of that. The travel company said the confidence of delivering fullyear underlying operating Profit Growth 10 15 is looking pretty rosy. They say they are pretty much sold out at higher average selling prices. Meanwhile, they say bookings are up about 1 . Average prices once again climbing. They were up 12 in terms of bookings. Lets look at a u. K. Stock. Bellway climbing, up 4. 5 . They are reading the rewards of the price increase weve seen in housing. Firsthalf profit up 19 . Gross profit up 41 . Sales Rising Profit rising. They are completing more homes. The order book is looking healthy. They are building a land bank as well. Theyve got cash to splash. They are having 25 pence per share in terms of a dividend. Once again, property prices in the u. K. Helping those builders. Meanwhile, accor on the downside. It is europes Largest Hotel operator and someone is selling shares. They are selling 11 million accor shares at 48. 75 apiece, just bringing it down in terms of the overall share price. The proceeds are going to come in at about 500 Million Euros and they are going to have aftertax 350 Million Euros. We are seeing more supply in accor. Therefore, down goes the share price. Anna thanks very much, caroline. Chinas Construction Bank international an arm of China Construction Bank will now offer europes first eds that invest in europes money market. Here to tell us more is tony hung, executive director of China Construction Bank international. He has just opened trading on the london stock exchange. Thank you for joining us. What is it you are going to be offering here in london and why have you chosen london . Tony we are very excited about this. The product we are offering is the first to allow the European Investor to invest in the onshore money market. We are providing this product, hoping that it will encourage the usage of rnb and w