taking the taint out of buying. we seem to be buying back into exports this morning. the euro is trading slightly weaker. i want to show you oil. this is what is continuing on the downward to decorate -- downward trajectory. still sub $48. it is all about the supply issue. inventories in the united states at 900,000 arrows last week. iran starting to say we are looking at upping the output. they could be adding one million barrels per day. itsonder oil continues in funk. you were just talking about some corporate news laced in today. it is all about retail. i wanted kickoff with tesco. could be selling its south korea unit to the tune of $6 billion. the international market could be selling it to an bk partners. it would be the biggest deal in south korea. ryanair up by a half percentage point. we've got ryanair showing .oosting passengers 10% that was happening for august. ryanair looking on the downward trajectory. i want to show you a little bit later, we are expecting it weakening after nick robertson, himfounder, is moving and lacing -- and replacing with a new nick. he has been at the company for six years. nick robertson will be a non-exec director. back to you. jonathan: thank you for breaking that down. i will bring you the asos stock in a moment. , julietteai composite saly has the job. she is in hong kong. juliette: let's have a look at the roulette wheel. the china market. it is going to close down. about 10 minutes ago, we were seeing the market and positive territory. -- market in positive territory. more speculation ahead ahead of china would not let investors rein on his parade. it -- we have seen the market close in the red. hong kong, a different story. the chinese shares owned by foreign investors, they held to a 17 month low today. the hang seng down by 1%. the japan nikkei closed lower today. elsewhere, it was pretty mixed. the cost the index closed pretty flat. that was a big focus for the asian region. you can see when the gdp number came through, it is back above the level now. for breakingnk you that downforce. it is the final day of trading on mainland china ahead of the world war ii celebration tomorrow. the government has been flexing its muscle in the market this week. the nation has come to the rescue. the magic hour when state back funds -- let's bring in richard frost. we have been hearing that china has been less involved. the charts tell me otherwise. what is the story? happy hour over in asia is when china state fund charged into the market. six days in a row this is happened. people try to get out of a dysfunctional equity market. at the end of the day, markets and a desperate attempt to shore up that market by the end of close. what we're being told is yes, ,he state is keen to back away the effort to keep pushing up that pull every day. what they are concerned about is .he semblance of stability tomorrow is a real showcase. the military might in china. what they don't want is markets tumbling 5% as it had been doing on a daily basis. hence, these funds come in. it .s very clear to see whatsoever. toarget of state funds finally succeed at the end of trade. and one can go happily toward the military parade. jonathan: maybe we should call this the parade protection team. to get more specific, on the way -- a lot of that was about margin trading. when you look at it unwinding, is it anywhere near completed yet? richard: it's interesting. -- how dodering why we know state funds? that brokerage has been ordered to commit money towards the rescue fund. what we have seen is margin trading responsible for a huge .un-up over the last year one is is is -- 100% gain or so through june. row, they1 days and a have been cutting leveraged bets on that market. we've seen rebound in shares. ist we have been told because that deleveraging price still hasn't and it, it is about -- it has fallen one trillion yuan. there are various estimates how big that is. what seems to be equivalent to the official figures. there seems to be a long way to go in terms of leveraging. that will weigh on the market. next week, the parade out the team goingt section to -- is that protection team going to come in? maybe start parading more journalists in front of the camera. richard frost, thank you for coming in this morning. kit juckes, the equity market. has been some us discussion in china. what really matters is the policy response. it hasn't worked. the consensus was we had the space in china to engineer a soft landing. are we questioning that? kit: i think markets are. to 5%.nomy is slowing real gdp growth. a bumpy landing is what some would like to call it. is wek what is changed have got this policy of uncertainty on the side. the desire to get rid of capital control. from as backing away fast as they are doing it. you get a sense that they are not adjusting towards more open markets, towards less control. it is very difficult against the backdrop of the slowing economy. let's call a negative bubble and equity bubble. -- let'scall a equity call and equity bubble and equity bubble. though thanks they have done over the last three months has fed that narrative, hasn't it? ? some of the things that you have had guess come on to talk about, the equity markets a big source of savings for the chinese people, so it is not as big a part of the economy or gdp . all of that is not true really. it is more alarming now, and the future of the rest of the world. we accept that the shanghai composite index is not the most important in the world. have a look at oil, the , theylian dollar, the s&p are moving around very fast as well. korean --k at south jonathan: a look at south korean exports. have a look at australia, gdp figures. which isrowth as 0.2% half of forecast. en, disappointing numbers out of australia. can we put it all down for china ? : experts were down 3.3% in the quarter. check the percentage points from growth. the size wasn't great. a lot of the growth came in at government spending. it is a volatile measure. it is too good to be true, because governments are trying to reduce their budget deficits. exports were down. investment continues to be quite week over the past year. what australia needs to get going outside of the mining sector. the percent -- the surprises that the mining sector was a detractor from growth in the quarter as well. a weaker result, but a poor quality result as well. jonathan: this story has not crept up on us. it has been happening for years. rebound --bout a something more of internal, the mystic consumption. that is the china story. australia, has there been any rebounding as all that's rebounding at all? in: australia is trying to transition from this boom economy. it wants services. it wants bigger growth in the mnemonic sector. the central rank has cut interest rates. they are hoping investment will pick up. it is not happening yet. firms aren't seeing the opportunities, an increase in demand for the future. at the moment, the talk is maybe australia has to accept that growth is going to stay below potential. for the next year or so. mcdonald, thank you for breaking that down. kit juckes, still with us. we talk about the equity markets. not a great gauge. south korean exports side, australian gdp is. canadian gdp. canada back into recession. there is a right to be concerned about mobile growth. ---the commodity super cycle kit: the commodity super cycle -- what we find is the rebalancing away from emerging markets and away from commodity exports towards commodity imports. the overall picture of what is happening. it is going to continue to be more painful for longer than people thought. australia suffers. terms, asiaonomic has held up externally well. we are unwinding that. there are a bunch of countries, we have problems in asia. we have problems in taiwan. you wonder, the u.s. economy is trembling. europe is troubling along. of anyone interested in foreign exchange, they want to know what you think about affects. as you say, it's not a crisis in china. correction in the aussie dollar has been going on for a long time. that drop below $.70. is it too early to say. kit: it is too early to say we have bottomed out. move around a lot. overvalued.pidly 60 would be stupidly undervalued. could we get 65 sense? $.65? we get absolutely. -- is not clear that a weaker currency could help them at this point. a strong housing market or rising house prices. they take micro prudential measures. they will probably keep rates where they are. of bad -- as we saw yesterday. weak exports and gdp numbers it makes the currency lower regardless. , oil meetsoming up gravity. opec shows signs of softening. it will lose reduction by one million barrels a day. lego reports double-digit growth in all regions led by asia. we speak with the cfo. asosnews in retail as the cfo steps down. -- asos ceo steps down. ♪ jonathan: good morning and welcome back. i am jonathan ferro. let's bring you up to speed with some of the top stories. oxtralia's economy group -- a slowdown from the first three months when gdp rose 0.9%. exports suck more than 3% -- exports sunk more than 3%. google has changed its logo. the biggest remount in six years. the same four colors with a simpler font. work bettered to across mobile devices. the new parent company is taking the name out the bed. alphabets.he name -- should the united kingdom remain the member of the european union? let's talk crude. oil may have dipped below $45 a barrel. that is not derailed iran's plan. elliott goggin has more. -- how much oil are they talking about? elliott: they had a lot of their market share taken away as a result of these economic sanctions. if they are at lift cup -- if they are lifted, they want to lift it back. a half a million barrels per day. after four months, we plan to increase another half a million barrels. elliott: you're talking about a million barrels a day coming out of iran by march of next year. 30it of context, opec is million today. -- 30 million a day. the reason why those prices are coming down. any additional oil could potentially push those prices down even further. week,an: elliott, last just an epic rally in crude. that was down to speculation that opec would court make production cuts. what does iran's oil minister had to say about that? elliott: he said we are not averse. we were discussing output with s of the oil cartel. we are not to be dictated to. --c will do what opec banks what opec thinks is an opec's best interests. iran is coming back into the market. the u.s.usic from in that it is increasingly likely to happen. i'm sure you will have it up on your screen and tell you us we are far -- and tell us we are far from that level. jonathan: kit juckes, we want to bring you back to the conversation. a 20% surge in crude. you go back to 1994 a move like that. aqa type of event. i said here asking the question, we saw moves and oil either way. it is becoming normal. that makes me nervous. what is behind these outside moves? in equities as well. we are seeing it across -- kit: a friend of mine in new as an oil analyst, oil prices were no longer about oil fundamentals. they follow the patterns of other asset markets. the problems of excess supply. runking we've had this long of zero interest rates pushing up whether it is chinese equities or copper prices to forecast they one would come up to. as we sit and wonder about that policy or chinese policy, we have chaos. i can't help but think this is the result of having such extraordinary monetary policy for so long. it comes to an inflection point in the policy cycle. very volatile markets in things that are associated with finance. --p cut you don't expect jonathan: you don't expect the down to -- you don't expect the dow to behave like a penny stock. we can assess and talk about liquidity. what do we -- what does this tell us about the ultimate destination where markets are headed? me can we get on with the first wave and not have this volatility? it tells me that unwinding extraordinary monetary policy just can't be smooth. bear in mind, we had 1% rate in 2003. we spent the next four years done chaotichave markets before. we've probably got one or two --rs of considerable considerably more volatility. jonathan: if it is confusing following commodities, it is harder perhaps to develop a strategy and look at the commodity currency. what is the outlook? kit: the currency is the benefit. belowllar, there is volatility. the dollar and yen are going to do better than the canadian dollar. i want less volatile currency to own in a more volatile world. of breakingt juckes it down for us. thank you very much for joining us. coming up, lego stacks on another round of revenue growth because slowdown -- revenue growth. could slowdown in china mean a slowdown for the world's biggest toy company? everything is awesome at lego. we are back in two. ♪ jonathan: good morning and welcome back to "on the move." i am jonathan ferro. 30 minutes into your trading day. the equity markets for you. august. september 2, we are in the green. stoxx 600 up. the ftse 100 also higher. 6/10 of 1%. call it 35 points. we go 78 points higher picks was of the boards quickly. i want to check out some of the commodity currency. the aussie dollar dropped below awful gdpight over readings. index, down byng 6%. an ugly session. the euro -- 1.12. other moves in the markets. let's talk headlines you don't get to read very often. asia leading the gains. that is what lego reported this morning. -- putsdown in china is future growth at risk. joining us now is the lego cfo, john goodwin. great to have you with us. massive sales in china. i guess for me, i want to gauge whether this is a lego story or a china retail story. you tell me. -- did winthe lego the asia region has been the focus for the last three years. has been thechina big emphasis. we are continuing to see strong double-digit growth in that market. presence your physical , you have developed that in the last year. factory on-site domestically. you continuing to expand your physical presence in china? john: we are the facility we have been building comes on stream at the end of this calendar year. at the same time, we are committed to building our overall marketing and sales presence there. we are upping our consumer research to ensure we are getting those key insights to continue to innovate great break.s, behind our lego to allow us to grow and appeal to more children in the chinese market. jonathan: where going to talk about product. i'll to take the temperature of global retail. you are in thousands of stores across the planet. talk to me about conversations you're having with retailers at the moment. guess telling me desk guests telling me that it is a scary place right now. john: the dialogues we are having is really understanding what shoppers want and how to present our products and the best way. there is a lot of changes taking place in regards to the consumer. how they are shopping. is becoming aine part of the increasing shopping avenues. it is important we continue to work with our partners. that's where we have been focusing. to me aboutlk products. another thing that is happened is the oil price has come from north of $100 a barrel to $50 a barrel. when the cfo -- when the ceo comes in and says we want to go -- as the cfo what is your response? cfo of the, i am excited, because i am responsible for our corporate sustainability. it is a great development. i am excited about the fact that we have committed one billion dkk to developing sustainable materials for the long-term. it is a long-term commitment. it is a difficult journey. that we havexcited been willing to prioritize this. innovateontinue to great product performance, but how we manufacture and the materials they go into these products. jonathan: if you were a public company, do you think you would have -- could be more beneficial to stick with what you got? john: it is difficult to speculate. i am very happy about we are family owned, so we are able to make the long-term commitments and continue to look to develop not only from a product interview, but markets. , butre talking about china we are able to look through that and realize with such a huge number of children in the world being resident in asia, we can commit long-term that we have to have a presence there. i am pleased about the ownership structure. jonathan: final question, on licensing. somewhere, lego has been successful doing. i was talking to guy johnson this morning. wellave done tremendously with star wars. we understand that lego is going into space today. what is the licensing opportunity for lego? john: what is important is we've got good balance in our portfolio. equities asrown well. that, we are mindful of the fact licensing products give us a good proximity to what is hot for the consumer. within the first half of this year, minecraft and the jurassic -- have been to very successful license products. as we go through the back half of this year, with the star wars movie coming up, obviously, star wars with whom we've had a 15 year relationship, we're very excited. demko john goodwin, the latest cfo. great to have you on the so -- on the show. what's going on in the retail sector. that nicklly announce robinson is stepping down. the founder of the online fashion retailer. he hands over to his cfo, nick beighton. charles, coming as a surprise this movement? as it seems as much this morning. thinking through the last formal presentation they did. nick robberson did not do very much of the presentation did nick beighton did much of it. movingects that asos is from being the entrepreneurial company to something that is much more the organizational one. you made anathan: tremendous amount of money if you held onto the stock. going forward, how big are those charts? give us some size and skill. have grown it from almost nothing to almost a billion in sales. context.to put it in there german. is twice the size of asos. the sort of change that needs to be. as it is moving from being let's do china, the u.s. as well. a much more focused company. intobeen able to grow fewer markets. jonathan: breaking down the departure of the asos cfo for us. we're coming back just a little bit. plenty of stock stories out there. a few more with caroline hyde. caroline: we're seeing ucb leading the pack. it doesn't-based company up 6%. agreemento do with an with amgen. a california-based company. it seems to be doing very well. meeting goals they say. ucb is galvanized up 6%. volkswagen, we've had some breaking heads earlier today. he is going to be staying on as chairman all the way through 2018, giving clarity to the company. .3%, not moving up much. the unanimous decision was come to buy the supervisory board. lastly, the only industry group to be down today is oil and gas. .6%.6/10 percent -- down the surprise gluts coming from oil. the statement coming from the iranian oil minister saying they're going to supply one million barrels a day. back to you. jonathan: thick you very much. caroline hyde. a lot of moves going on in the market. i have a ftse 100 having its worst month since 2012. we are back in the green this morning. up by .4%. up next, netflix tries his hand in asia. first up is japan. will it succeed in the japanese market? more when we return. ♪ jonathan: that morning and welcome back to bloomberg tv. i am jonathan ferro. let's get to some of bloomberg's top stories. nearing -- $6o be billion. --roup led by mbk partners korea is tesco's largest overseas market with 900 owned franchise stores. most opec members would love to see crude at 70 to $80 a barrel. oil minister talking exclusively to bloomberg. he like to see one million barrels a day within the first five months of sanctions being lifted. netflix launches in japan today. tothe streaming site looks broaden its audience in asia. caroline, japan has been a tough nut to crack. caroline: they are laying the groundwork. they have plans to help with the launch as it kicks up today in japan. it is their first foray into asia in general. this is where they are going to test out first. they launched today. customers have already significant access to broadband. they are a tech savvy nation. they have broadband, so the connection is much easier. this is in line with the overall view that they are going to trouble the amount of countries they currently are in. it is generally a western phenomenon at the moment, netflix. they want to roll out. you want to push from 50 20 16.es to 150 by by 2016. let's see how they are going to will in the japanese users. very few people pay for tv and japan did -- tv in japan. change theto japanese -- change how the japanese currently viewed television. think about the amount of people they have to convert to pay television. it is a changing of hearts and minds. get teens in japan. on august 24.deal they are going to help them advertise and promoting their service. they've got panasonic and sony pre-installing the netflix button on the tv remote. preinstall it on the new smartphone that you buy. it is all going to be helped by friends in japan. japanese like their own content. be going tong to 40% local content in japan to try and jump up the user base desk try to drum up the user base. -- try to drum up the user base. they are going local, but there are so many challenges. a whole array of headlines against netflix. it sent their stocks down about 6% yesterday. japanto be launching in this month. they are offering their content, prime video. you're able to download and use it on your phone while you on the train. .here is a big move apple is in talks with hollywood producers to produce their own exclusive content. ofs gets to the very nut --flix is come to titian. netflix's competition. jonathan: the executive proposing to extend their ceos contract. what would that contract extension mean for bw -- for vw exactly? uncertainty. if you recall, there was a major betweennt dispute longtime associates. it fell apart and there was a dispute about a power struggle between the two. it will pound things down at volkswagen. , the supervisor had already backed him in the struggle. in the aftermath of that, he is thatng on a new structure pushes new decision-making out into the group. we are expecting to hear results on that move in the next couple of weeks. volkswagen some stability for the next two years. it gives the potential successors time. the chief of the volkswagen brand, it gives him time to make his case to be the successor. at the moment, he just joined the company a few months ago. he doesn't have the track record yet to say he is a potential successor. it gives a couple of years to get that ceo succession plan in place. jonathan: thank you for breaking that down for us. a challenging time. we are 50 minutes into the trading session. let's give you an update on where stocks are trading. what a journey to ftse 100 has been on. the month of august, the worst month for ftse 100 cents 2012. we are going to come back. by .6%. 89 points higher. parade protection team, it didn't work overnight. the shanghai comp's it closed, dropping 1.22%, ahead of a two-day market close. switch of the board. astralian gdp overnight disappointment. the aussie doubt -- the aussie $.70. at a stronger euro less week. we kissed 1.17. a weaker euro this morning. by 0.52%. for two 350 mining index down 6%. say, we canased to get over to the frank for banking conference where hans nichols is standing by with the guests. go i'm standing by with a -- hans: i'm sending by with the guests. he is a important guy. he has insight about what is happening in this economy. we have seen the stock market's life. what is that going to do to growth in germany? >> we take it seriously. our car and street has a big market in china. we are not hesitating, because we do not see much of an impact. growingstic growth is a when it comes to writing salaries and pensions. we are doing very well here it hans: when you say you do not see an impact yet, a lot of this negativity happened in the last week or so, there would be a lag time in data. >> we will see that. we have a low interest rates. we have a lot of progrowth as well. we'll see what comes out. it was not reflected in the last quarter's gdp. how concerned are you that there is not going to be a review by october? because the elections, the review could be delayed until november. ofwe do expect at the end october. it is not a problem. -- we expect whoever becomes -- whoever comes into power and greece, this agreement stays with not want to go party. whoever wins, do what is promised. concerned about uncertainty coming out of the election. >> there is a chance that after this election, we do have every form -- we do have a reformed government. it could make things easier. hans: you think a mandate reform form -- a mandate reform, they limiting these measures. -- that could make implementing these measures. we decided on dsm support for greece. i think it is after three weeks of closed banks and greece, everyone has understood there has to be reforms if greece wants to stay in the eurozone. hans: what indications do you have that they are going to join this after an election? >> we have a very strong commitment from the imf that they want to stay in as well with financial support. we have to negotiate about the debt relief. how do we measure the debt burden of greece? much hask at how greece to pay per year? hans: you want to look at the net value? >> yes. the burden that greece has for the debt. the interest rates. we keep greece away from its that burden to give it time to recover. , we wante to 10 years to bring it back to the financial market. that is the plan. we want the imf support for it. it is not a debt haircut but a debt relief. negotiate as well as the interest rate for the debt. i am very sure we'll find a solution. has: when you look at what -- hans: when you look at what could happen with a new government coming in, is it easier to work with mr. tsipras? >> he made a very strong commitment to the reforms. i think it is understood that greece has to do reforms when it wants to stay in the eurozone. it has to see a pension reform that will not be easy to do. verysipras could be a strong leader for reform. hans: what was your reaction when you heard that mr. yanis varoufakis could come back? cost?t is going to be the you are in surplus, what is one to be the cost for the refugees? >> billions. .hen it comes to subsidies the cities that have to do with it. situationry special we are in that hasn't been known for years. european support -- we do need european support. -- hans: i thank you for your time. jonathan, we will send it back to you in london. jonathan: hans nichols, thank you very much. a brilliant interview. minutes into the session here in europe. the ftse 100 just rolling over into negative territory. we are back in two. best of luck for the rest of your day. ♪ affairsstocks close after raising earlier losses for the last trading day of the week. while australia's economy slows and its key trading partner ways on exports. 45 a breats below arrel. out of fashion. after 15 years at the helm, co- founder nick robinson steps down. shares dropped by 5% on the news.