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tv   Countdown  Bloomberg  June 27, 2014 1:00am-3:01am EDT

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>> will david cameron's crusade backfire? eu leaders are set to confirm jean-claude juncker as the next president of the european commission. the new york attorney general tells bloomberg that the bank was changing data and misleading investors. and as nike profit exceeds estimates, we look at the sponsorship between the brand and rival. german company -- it will not use luis suarez for additional marketing in real. -- in rio.
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to "countdown." i am mark barton. it is 6:00 on this friday morning in london. bloomberg reporters are standing by across the world, ready to deliver the stories. hans nichols is in brussels at the eu summit. manus cranny is covering barclays. caroline hyde is looking at nike . and in hong kong, zeb eckert is focused on what could be the biggest ipo ever from the u.s. as alibaba chooses an exchange. u.k. prime minister david cameron's fight against jean-claude juncker is only the beginning of a battle with brussels. it looks increasingly isolated from traditional allies. hans nichols joins us from the eu summit in brussels. good morning. tot is angela merkel's plan
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de-escalate the situation? >> that is a very good way to put it. merkel wants to lower the temperature. she plans on engaging on policy and acknowledging the need for reform. listen to how she made sure there was space for cameron to climb down. ifi think it is not drama the vote is not concordant. we have to find as much common ground as possible on substantial issues. i think we can find good compromises with great britain and extend our hand to them. >> on her first point, not wanting any drama, she may be disappointed. cameron plans on calling for an actual vote to see where the chips fall on jean-claude juncker. he has vowed to continue this fight and says it is only the beginning of a campaign. here is what he had to say.
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it is important that the people of the campaign know what i will do. i will stick to my guns. i will stick to my principles. he sees it as a warning to other european leaders that the u.k. plans to fight for reform. this is only the beginning. it is not the end. so we are going to have some interesting policy discussions once we get over the personnel aspect. do not discount the opportunity or the likelihood that there will be more drama. -- one sideuncker note, juncker was at the dinner last night. >> the first round of sanctions against russia is also on the table. what is the latest? >> that will be discussed today. officials have been preparing sanctions. it is worth noting that today, the ukraine, along with moldova and georgia, will sign the association agreements formally with the eu.
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that is what kicked off this entire crisis, perhaps triggered the invasion of crimea by russian forces. what we have today is a formal tie up of these eastern european countries and the eu and always potential for more sanctions. you listen to the difference is coming out of the u.s. administration and the differences coming out of the eu, it does not seem like everyone is on the same page. if there are sanctions, it looked like they would be narrow. in brusselsols today. barclays is back under scrutiny today. 2.5 billion pounds was wiped from its market cap in the wake of the new york attorney general alleging deceit in its dark pool trading. what do we know? momentum behind a story begins to build. yesterday, it was the lawsuit. the fact of the lawsuit and the reaction from customers.
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deutsche bank, rbc, sanford bernstein, some of the big players in the business, clearly used the dark pools of our clays. they have pulled their business. likes of goldman sachs, morgan stanley, jpmorgan did not use barclays lx. a small street known as wall street in a closed club, usually people talk about various businesses. eric schneiderman spoke to bloomberg about the issues at the heart of the situation. >> one of the things barclays was doing was changing the data and misleading clients about how many trades were actually filled in barclays on dark pool. they were saying they had this elaborate -- they had this elaborate propaganda about always going for the best price, the best phil. in fact, the data that this director was preparing showed that 75% of all the trades were filled in barclays dark pool.
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>> he did go on to say that it is up to what barclays does to directly affect what happens. for me, this is about relationships. you breach relationships, you breach trust read in banking, relationships plus trust equals these. >> anthony jenkins came almost two years ago. six months after he came to the position, he gave a good speech and said we are going to commit to five big values. >> integrity, service, excellence, stewardship. he sent a memo out last night to staff and said that this lawsuit represents charges and allegations. "i will not tolerate any circumstances where our clients are lied to or misled."
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it is a fairly important part of your business. it is equities. he is trying to rebalance the investment. >> and dark pools are under equities. revenue from equities is declining, but by not as much. >> 41% it dropped in fixed-income commodities and currencies. two big issues. one, what does jenkins do next? how does he show that he has a grasp of the issue? secondly, the much broader exchange versus over-the-counter business. >> nike reported numbers last night. will be hoping its sponsorship of some key teams and players will continue to drive growth in its football division. here with more on nike's ambitions is caroline hyde. earnings were a beat. >> they were. this is the biggest sportswear company and -- in the entire
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world. they are still showing growth. profit up 5%, sales up 11%. running is a massive potential for nike. regions, the united states better than many had been anticipating the -- anticipating. but china as well. had in thethat they shops are now dwindling. china is back on board. they say future orders are going some 6%.p some ^% -- in western europe, the rebound was quite phenomenal. >> how is it faring versus adidas as they fight it out to be the biggest brand in sports? >> they are closing in on adidas. ore did not take football soccer particularly seriously until about 20 years ago. now they are just stealing share
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from adidas. 21% increase in the global football business for nike. that is $2.3 billion in terms of revenues. adidas gets about $2.7 billion. nike is catching up very quickly and they are really putting money behind corporate sponsorship. 10 out of the 32 finalists for the world cup were sponsored by nike. adidas sponsored nine. so nike has more teams under their belt. they also had half the boots out on the pitch, they say. now they are neck and neck in terms of who is going to the next round of the world cup read both have five teams. here you hasn't it. nike has brazil, the favorite, france, greece, the netherlands, and the united states. hasntina has -- adidas argentina, germany, colombia, mexico, and nigeria.
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a bit of an own goal as to who they land to sponsor. luis suarez was banned. >> they are standing by him though. >> they have not said they are cutting their contract with him, but they would -- they did say they are going to reanalyze it. once uruguay appeals the ban. they are not going to be doing any extra marketing with him and they keep on saying that this is a man with a reputation. seven-game suspension back in 2010. this is a key problem for adidas , how to make sure the people you back continue to hold your brand. >> what could be the biggest ever ipo in the united states? to list its shares on the new york stock exchange. the decision is a blow to the tech-heavy nasdaq. >> it certainly is a blow to the
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nasdaq, which has billed itself as the exchange for technology companies. this is a key win for the new york stock exchange. bourse provingd it is not as old as some people think. alibaba choosing it for its listing as the third biggest technology company on the big board. this $20 billion ipo would be the largest in history there. for the newstoric york stock exchange. the company is valued around $168 billion. as they look forward to this stock debut, investors will learn a thing or two about as well asiac chinese superstition. very interesting to see alibaba bringing some traditional chinese values all the way across the world to new york. >> when is it going to debut and what will be the stock code?
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exactly withails what i was just suggesting to you. the stock code will be baba. mandarin is the number eight. so you have double eights. fa is the word for austerity. the trading day is like the august 8. that means the prices on august 7 as all goes forward. we should note that the same people say that if there is some kind of market disruption, that would slow the deal and it could be delayed until september. that is what we are hearing from sources. it is not confirmed from the company itself. but the company, in its filing with the sec, confirming that the big bourse gets the deal. >> zeb eckert in hong kong. hundreds of thousands of people and lots of rain and mud.
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we are going to go inside the iconic festival in the next hour. do not miss that. plus david cameron is hell-bent on getting jean-claude juncker from securing what is referred to as the top job at the you. perhaps he should focus on his most powerful decision-maker instead. that conversation is next. ♪
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>> perris-based peugeot expects to cut its headcount by 2500 over the next two years. the carmaker employs some 70,000 people in france. it plans to cut payroll costs to 12.5% by 2016. seeking acquisitions to become europe's biggest electronic payment company has priced its shares at 16 point40 -- 16.40 euros each. the shares were initially offered in a range of up to 20 euros. areyle and alliance boots teaming up to submit their pitch for cooperative pharmacies. the two companies are the only
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likely bidders for the business, $1ch makes a jump to about billion. welcome back to "countdown." david cameron has focused his junckeron his stop campaign. perhaps he should turn his attention to angela merkel instead. a manager from sturgeon capital joins us now. do you think his approach was wrong, david cameron's approach? >> it was simple from the beginning. you have to show that you did not want jean-claude juncker. show that you are concerned about him. at the last minute -- at the last minute, make a graceful acceptance to angela merkel and accept what she wanted to do. that was the clear way to do it. i think everyone has done it. the prime minister of sweden has done it. same with the netherlands and matteo renzi.
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in terms of strategy, it was probably the best strategy. as we saw yesterday, angela merkel is showing some signs of accommodating britain. realistically, it is not that bad for mr. cameron. public opinion thinks he was right to do what he did. overall, it is not too bad. other votesfocus on that will be decided. we have the head of falling -- of foreign policy for europe and in november, the president for the european council. those are very important positions and he would have to fight to be able to get people that he likes. >> have the odds of a british exit from the european union increased from this episode? >> i do not think it is because of the episode, but recently
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they have been able to form a parliament,oup, the that will make them quite a lot of money. when he million euros. all in all, the situation in the u.k. is stronger. i think the chance of exit is higher. >> outside of this meeting today in brussels, we have some french 7:45 london time which should show no growth whatsoever in the economy. what is happening to the french economy? nde played theolla juncker nomination very well. they have to get more flexibility from the european union. france and italy desperately need this. in the next few days, we will see if matteo renzi managed to achieve that by switching to jun
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cker or not, but i think it is a step in the right direction. >> italy's debt level has risen to 2.15 trillion euros. that is the same as in germany. debt to gdp could rise to 135%. is it sustainable? should italy be selling debt at record low levels? ,> right now, peripheral europe borrowing at a 19th century low anyway. is it the right level? they still need to be invested in peripheral countries. i think that the trade of being long peripheral europe, i think it is almost down, except for maybe portugal. , it should bely even tighter.
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>> stay there. more in just a second. portfolio manager at sturgeon capital. ♪
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>> welcome back. i am mark barton. this is "countdown." portfolio manager estrogen capital is here. interesting comments from james bullard yesterday, the st. louis fed president, saying he would
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vote for a rate hike in the first quarter of next year. i'm to bring forward our great expectations? market is a bit complacent in terms of a rate hike. i think the first rate hike will be in 2015. i think it will be faster than people expect. right now, markets expect the rate will be around 1% at the end of 2015. i think it will be higher than that. the speed of the rate hikes will be a little bit higher. >> that account for the u.k.? you have had two weeks of comments from the governor about the pace of the rate hikes. >> it is very hard to follow what the governor of the bank of england is thinking the good is that in the. u.s. and europe, a lot of people are talking about this.
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one week he can say something and the next week, he can say something else. i think he is moving the right direction in the u.k.. probably the u.k. will be the first major developed country to raise rates. as we saw yesterday, in order to , you the housing bubble can do different things compared with interest rates. you can make sure that the bank or lending more responsibly and you can tweak policy. having said that, i think it will be necessary for the bank of england to raise interest rates toward the end of this year. >> the other news was inflation out of japan. 3.4%. a lot of that is down because of the sales tax hike. a lot of that is down to utility prices, wages moving forward for the best part of two years. where are the wage increases? newsere might be some good
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later in the day in terms of bonuses. it is true that households are squeezed. household spending was worse than expected. retail was slightly better than expected. in messages were a bit mixed terms of economic news today. right now, we would like to see household being able to spend again. we saw spending before the increase of the sales tax. we have to see if household will be able to spend more during the second part of the year. , compared to last year, households are getting squeezed. >> good to see you. have a good weekend. good luck to france in the world cup. there it is, in case you did not know. still to come, cameron will not go quietly as the prime minister is set to force a vote on
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jean-claude sugars appointment cker's appointment. we ask what the appointment would mean for business. ♪
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>> welcome back, i am mark orton -- barton. we will look at the new zealand dollar. a reading engagement with strengthening of the new zealand dollar. post post float record highs. growth is significantly more than the potential of the economy. the new zealand dollar value and focus.
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dollar-yen has shifted around. ou have seen is all the selling of dollar and buying of en. that -- dollar weakness is the dominant theme in the market. of -- there was a note saying they have a strong conviction, sell on euro dollar, euro sterling. they think what you should do is buy real and indian rupee. you, mark. >> these are the bloomberg top headlines. a cease-fire called by ukraine's government. as european year later's -- leaders are set to meet to discuss sanctions against russia. climbedconsumer prices
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at the fastest pace in 32 years. 3.2% from aon rose year earlier, boosted by a sales tax increase and utility charges. gains remained a limited area at the heritage -- remain limited. in the head of new score was cleared all of -- of all charges related to phone hacking and bribery. she was at the center of an eight-month trial into wrongdoing. >> i am innocent of the crimes i was charged with. i feel vindicated by the unanimous verdict. our next next guest -- guest says it is likely jean-claude juncker will be the next commissioner. does notclaude juncker have the business acumen. robert joins us. thank you.
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cameron go about this the wrong way? he could have expressed his lack of support for jean-claude , and then fought a bottle he could have one. david cameron decided he wanted this battle and wanted it publicly. effect that he -- people will is to mean that britain can bring about the rights of influence. i think that is the point here. we have a clear message from voters. they wanted change. eu toanted the ee you -- do things differently. they wanted less interference. the election of jean-claude juncker suggests the opposite. he hasameron might --
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set himself up for this battle. buyer losing it, he has raised the stakes. he has created the feeling in britain that with jean-claude juncker and power, renegotiation and reforms will be more difficult. >> do think that is the case? >> jean-claude juncker is a symbol, but he doesn't come with the business acumen that many good one to see in the eu. a course of federalism and closer union. the italian leader says he wants the united states of europe. --t is something that is many across the continent feel the eu should be doing something different. his election and policies do seem to be -- and that will make
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the process more difficult. but we might get used to tomorrow best. -- to more of this. >> you have released this really letters -- research. you have said that written must secure the you financial regulation reform, a or foist the choice of -- or face the choice of joining or leaving. >> we dubbed it osborne's fort. the rule -- the way that the -- the needs of the ee you are outweighing and out voting british interests. britain will be faced with this decision if it cannot seek protection. and 2010 crises, we have seen an change in the direction of regulation to read >> before that, britain
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benefited from financial services regulation. ricks you could make that argument. because those rules that were being brought in existed -- mirrored existing british rules, they tended to liberalize overall and open up markets for firms. there was a potential financial growth. on 2010, the eeo has focused banging behavior. preventing or limiting it. britain has focused on empowering markets. there is no better example of we ended up in the european court of justice on over four different injures in which the british government sees us fundamentally opposed to our interests when it comes down to the city. you can imagine the germans accepting this kind of legislation on their car industry. >> does that give us hope that they have been successful in
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protecting their key industries? the germany -- the germans and french? suggests two things. firstly, we need to seek reforms. there have to be these reforms for britain to continue to have the relationship it once with the eu. it suggests changes possible. it is not an easy prospect. what it make clear is is is vital we -- we can't have a situation where the interests of the eurozone are overruling those of written. mosting what is our prestigious and productive industries that contributes 46 billion times into the british economy. crooks you have been running focus groups. trying to listen to the public. what are they telling you? >> we mustn't forget what the voters want from this. reform isiation and
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to be successful, it has to be endorsed by voters in a referendum. there has to be a judgment on that. we did conduct focus groups in key marginal constituencies to see what they are thinking. it was quite startling. it made very clear that the voters in the same way we saw with the european elections, they are dissatisfied with the current political debates. they aren't happy with the current two leaders of the political parties in the u.k. fromhave differing views city analysts and many campaign groups one from this renegotiation. for them, it is about immigration and free movement of labor. those will be the biggest concerns. but it is often about the eu doing less. getting rid of what they describe as silly little laws. and the cost of the eu to them. some startling -- >> there is a bit of a pro-business slant to the ee
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you's future programs such as clipping down on the free movement of workers. reducing red tape. pursuing free trade. is that not enough? >> those are the kinds of things the eu will have to deliver to make sure it is more competitive. providing britain the right deal. alternately, what is this -- >> ultimately, what business wants to focus on is the benefits of the common markets. only hold the small businesses up to the larger firms, they felt at the moment the cost of the single market were outweighing the benefits. 95% of british firms do not export to the market. we need to find a situation where the relations and compliance is not acting as a burden. it continues to open up tree deals for those who wish to seek them. >> campaign director at business
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for britain. at --to come, we, look take a look at the world cup sticker market. ♪
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>> time for today's world cup news. team usa is through to the last 16 on goal difference after a loss to germany. thomas moeller put one past the u.s. goalie. the ninth cup goal for him. a feat matched only by brazil's pele. hisck obama congratulated team for define the odds. >> i have to begin by congratulating our u.s. soccer team. team usa for dancing. --t round, the world cup team usa for dancing to the next round of the world cup. usa.
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absolutely. we were in what was called the group of death. even though we did not win today, we were in the toughest grouping. we got through. we've still got a chance to win the world cup. the biting incident has landed the player a four-month ban banned -- and he baned next nine uruguay in teams. fans in brazil--
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are collecting world cup stickers. their goal is to get all 642 complete their albums. square has become a makeshift trading floor where collectors old and young gather to swap, buy, and sell the river sticker therarer sticker commending the mosts. --resilient star name are commending the most is a brazilian star. welcome back to countdown, i am mark barton. shortage of troubles. the management accidents, -- the management accidents -- exdous . -- we provider
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global research and data on 100 industries in all major sectors. hi, charles. normally, these can be dull affairs. not this one. people have ae if real point of controversy. there is not a big pay issue. they are not taking bonuses or anything. everyone knows there are problems. although there are undercurrents, i don't think is going to be a big moment like some of the historic ones. >> it is a tough time. he has shuffled the management team. they are losing senior executives. didn't he lose a merchandising director this week? >> he did. there was a time when everyone wanted to go and work at tesco. now the employer of choice.
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they are shuffling things around. well,ou are not doing sometimes people get the blame. they can be moved on. don't want to face what the internal pressure is. >> is a time for mr. clark to move on? >> people are beginning to say that. there are also people who are supporting him, saying he is doing the right thing. come outcessor has publicly's to support him and the right doing thing. >> aren't sales down 4%? >> that something right part of it. if you cut rices, your sales will go down. people buy the same amount and adjust costs less. >> is put -- is competing on price the right strategy? >> i don't think they are doing it. the stores being the size they have competing on price alone is not the right strategy. they have bigger stores.
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people need to get into them and buy more. if they have too many big stores. less. want to spend >> have they communicated with they are about? how are we different to our rivals? what it isense of about? do people have a sense of what tesco was about? >> that is one of the other things. well, it were doing was cold broad appeal. now they are not doing so well. there is a squeezed middle. , to are trying to define it improve the quality of the food which they probably let slip a little bit in the recession started. people would want to spend less and would accept slightly lower: the best lower quality. electronics.of they realized that was not a movie -- moneymaking area. it is in transition.
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this autumn, we will see where tesco is and what people's responses are to it. >> thank you. charles allen of bloomberg industry. israel has less -- doesn't have much water and less snow. our editor went to the desalination plant in israel. >> it is the size of 14 football pictures. it extracts enough water from seawater to fill 172 swimming pools. quartz we get a lot of water that can supply the need of you .5 million people in israel. a city to surprise of chicago. >> he is the seat eo of the company that built the plant. >> without this plant, you would finish thisto
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summer with water in the cap. >> at the core are these massive membranes. seawater is forced against them under high pressure, filtering out the salt. these are the pre-sweet mint -- pretreatment pools. floating elements are separated from seawater. spot toso an excellent give you a sense of the scale of this plant. water world's thirst for grows, desalination looks set to become more common. worth $6the market was billion. by 2018, it could rise to $15 billion. best opportunities in industry. the technology is leagues ahead. >> we work at much higher efficiency and waste less water.
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we greatly reduce the energy consumption. ide says the technology speaks for itself. perhaps most surprisingly with an outline snow maker. >> we wanted originally to desalinate water through freezing it. it was not economical. we were left with the ability to freeze large quantities of water and makes no out of it. >> beyond the stickies helps -- the ski slopes, they have a number of projects in the pipeline. after a decade spent battling bureaucracy, they will start in california. banishes luisfifa suarez after another biting incident. all the details in the newspaper segment next. ♪
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>> welcome back. newspapers time. hans is with us. elliott, to get away. story entitled, designing the world posco biggest campus. it is about a young israeli woman in charge of the team that doodleswhich google shall pass. teeth ofing to see the
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suarez, but no such luck. interested to be know that beyoncé wants to collaborate on the doodles. wasoriginal google local also designed by an israeli lady. times.saying that 10 google doodle. >> are you afraid of this fan? belgian red- a devil. he round of 16 it is what happens when teams advance. i thought i might have to explain that. >> i am rooting for holland. it is not because their manager is the next manager of manchester united. >> i have something from the
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times. the elusive artist two c. he -- banksy. this is called the three spooks. someone is trying to take it down. the same thing has happened as an london. the people say it is theirs. they are standing around it, having a 24-hour vigil. so the company cannot take it down. it is apparently worth one million pounds. >> there it is. that is the story of the world cup. swore is there. nine league games. one cup game. all stadiums. liverpool if they want could sell him. apparently are salon and real madrid are interested. uruguay has appealed.
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he will miss 34 matches because of all his bands. -- bans. incredible. countdown continues in the next hour. all the latest on russian sanctions. stay with us. ♪
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>> will david cameron's crusade backfire? eu leaders are said to confirm jean-claude juncker is the next commissioner of the eu. >> the bank was changing data and misleading investors. >> and is making profit exceed nike says they will not use luis suarez for additional marketing. >> welcome to countdown, i am
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mark barton. >> and i am anna edwards. the uk's prime minister david cameron jean-claude juncker fight against fred against jean-claude juncker is the beginning. he arrington national correspondent hans nichols joins us from the use summit in our international correspondent hans nichols joins us from the summit in brussels. >> she wants to engage on policy. she wants to knowledge the name need for reform. she was to find some way to help david cameron climbed down from his situation. not drama if is the vote is not included. we have to find as much common ground as possible. i think we can find a good compromises with great britain and extend our hand to them.
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>> that was from a meeting last night. they had dinner before the big summit here that is just kicking off. cameron is digging in. he is saying he all celebrating his fight, saying this is only the beginning. part of a campaign he will wage. he is making it clear he wants to use his opposition to jean-claude juncker as part of his overall case he will be's firm and strong with brussels as he keeps to seek the best seeks to keep the -- as he seeks to keep the u.k. within the eu. it looks like there will be drama. cameron will call for it. we will see how much to send there is. >> david cameron seems to want to look like he is in fighting mode. in another subject, sanctions against russia will be on the agenda. what is the latest? >> they are preparing the
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sanctions. they don't have an agreement with the u.s. or themselves. it is important to note that today, ukraine, moldova, and georgia signed association agreements with the eu. it brings him closer to the west. the is what kicked off entire issue over crimea. and the russian invasion. >> hands, thank you very much. barclays will be back under scrutiny. in the wake of the new york attorney general alleging deceit. manus cranny is here. kick back.ig >> this is a huge kickback. business, electronic business, is worth $50 billion. it is not inconsequential. deutsche bank. i could go on with the names.
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some of the big hard hitters are said to have pulled their business from barclays. three of the big names did not transact. jpmorgan. and more than stem he. -- and the morgan stanley. did they know something that the rest of the street did not? the attorney general spoke with bloomberg. >> one of the things barclays was doing was changing the data and misleading clients about how many of the trades were actually filled. they were saying they had all the celebrity propaganda. wherever market is best for the client, we go for the best price. the data that the director was preparing for you big institutional investors showed 75% of the trades were filled in barclays dark pool. >> when you transact in a dark pool, you are not old the legal responsibility of what is called asked execution. expected to be told
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how it operates. is this something that happens on exchanges. the reason the exchanges will make that case. he also went on to say that it depends on what barclays does next in terms of the effect. for me, relationships that are broken, relationships and trust equal fees in making. what aalked about difficult time this has been. not the first kindle he has had to deal with. they need to keep is facing to keep coming. he has been there since late summer of 2012. -- and, and students excellence. his words on how to run barclays. -- he said,ing act this is not good.
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the equity business is something i can build on. this is a broad swipe at the equity business that goes to the heart of trust and integrity. -- hat end, this is a huge >> you need the equity business to deliver. the debt trading business is not delivering. >> the exit he -- equity business dropped. i will not tolerate any circumstances in which are clients have been lied to or misled. that is what is at play here. i take you back to the culture review done by anthony as early as last year. justifying some of the renumeration. some bankers lose sense of proportions. this is last year. last year, what did he do? he raised the bonuses. big tough one for jenkins. >> i find it amazing that the latest data that the authority
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puts out, we have only recently been able to get this data and how much stuff is going through each start pool. it is amazing that the top three are european. you've to go to number four to find an american bank. >> where you go with this is regulation. >> thanks, manus. >> the largest ever ipo in the u.s.. alibaba has chosen an exchange. let's bring in our reported. lulu, what did it choose? alibaba has finally chosen its venue. it seems like this time the new york stock exchange has gained the upper hand. baba as theosen ticker. 2007, they also
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use the ticker 1688. they are expected to list as soon as august. but that is subject to change. >> what does that mean for the exchanges? >> is definitely a blow to the nasdaq, which has always he -- which is already lost 22 tech ipos to the new york stock exchange. this is an exchange of that built its reputation on hosting tech ipos. but it seems like the new york has been chipping away at its leads ever since the facebook ipo botched. and the company like ali baba has a lot of impact. none of the company is valued at $168 billion. kong toroached hong
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list their ipo, but they were eventually turned down due to their partnership structure. the city is saying they should reconsider. share, one-vote structure. so they can host more companies. with that proposal will take place is under debate. >> thank you, lou. chen and honglu kong. >> now the top sports maker reported numbers. be hoping thatl their sponsorships will drive growth. >> here now is caroline hyde. the numbers seem to be above estimates. sales up 11% problem -- 11%,
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and female demand is helping prop up their numbers. as his running, jogging. massive potential. in terms of regions, the u.s. still looking strong. >> they beat estimates in the north american part of the business. >> china is an interesting one. they have been warring -- worrying about excess amounts of goods. they are managing to get them out the doors. china is picking up future orders. they are strong in western europe. china, said to grow 6%. a lot of sighing of relief. >> how are they doing it in the market to be number one in soccer? i can't believe you said the s word. >> amazing. the global football business group 21%.
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this is a company that only got serious about football 20 years ago. titus has been during the world cup since 1970. nike has come in since 1994 and threw money at the situation and one market share. they now have $2.3 billion in terms of sales. that is about half a billion adidas.n a titus -- they are pretty equal in terms of who will be on the pitch for them in the final grouping. -- five jerseys they are sponsoring. brazil, greece, france, the u.s. >> the dutch. >> there was a lot of turf war going on between nike and a titus -- adidas. it is going to be a particular
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problem when nike sponsors a team on top of them. they did not put enough england branding. >> they do sponsor mr. suarez. they are also winning on social media. 37 million facebook likes. .s double what adidas has >> five days of music. hundreds of thousands of people. usually lots of rain and mother's day -- rain and mann. it can only be lasted very -- glastonbury. >> the director of global credit. ♪
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>> in time for today's company news. their headsto cut cut by 2500. the carmaker employs some 70,000 people. they pledge to cut payroll cost's.
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seeking acquisitions to become europe's largest electronic payments company. they have priced their shares at 16.4 euros. they were initially offered any a range up to 20 euros. and they are timing up to submit final bids for quadrant of pharmacies. the two companies on the leak -- only likely visitors -- the two companies are the only likely bidders for the business. >> joining us now is the director of global reddit. -- global credit. higher interest rates in the u.s. may come sooner than thought. it's just the u.s. economy is strong enough to -- handle a rate increase -- it suggests the
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u.s. economy is strong enough to handle a rate eased increase. >> i don't think the fed will be that aggressive. aere is a real the date -- real debate going on about how quickly to pull back stimulus. we are seeing a lot of froth and asset values. they are getting concerned we may see too much strength. >> how do we position ourselves? for a normalization? >> that is a great question. investors have been struggling with what to do. there are a number of strategies that can make sense. you can go with short duration strategies. more unconstrained strategies and bonds that don't require you to have as long a duration position. >> in some of your notes, you have a preference for financial businesses. it is very topical in this part of the world.
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it's not something that as an investor worries you? >> as a credit investor it is fantastic. there's nothing better than a well-regulated industry. maybe not as great for the stockholder. >> you have this approach which definitely jumps out. a holistic multisector strategy. against the grain. explain what that means. >> one of the aspects of financial markets today we are seeing is retail investors are chasing what has worked in the past. means being a contrarian investor, focusing on where opportunities are going to be going forward, is going to make you more money. that is what we do. >> what have you uncovered? >> emerging-market corporate debt that has been out of favor isthe beginning of this year one of the best places to find return. >> why?
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you are a credit investor, but why would it investors choose to go into credit rather than equity? when equities continue to push against six-year highs. >> that is part of the reason. investors realize, going into high-yield or a credit type investment, you get the extra not with therhaps same level of volatility. lower volatility is very important. >> lower old cody is an asset theme across all asset classes. when you expect that to change? >> your going to have to see central banks pulling back. carney is a great in decatur. we call him the canary in the coal mine -- great indicator. we: the canary in the coal mine. carney --
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>> the canadian canary. >> exactly. >> what are you expecting from the european economy? had data on unemployment in france that is disappointing. manufacturing pmi's are disappointing. is picking up. but the macro indicators art disappointing. how does that way into your view? disappointing on the short term basis. if you turn the clock back 12 months, you would be thrilled to have the data we are seeing. a bounce back now. >> even the levels of inflation? people fearing deflation? works you are seeing less deflation in the eurozone. having said that, the deflation is a great sign because it means the ecb is going to continue to be supportive for that market. pictures of dignitaries
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arriving in brussels. eu leaders meeting there today. ben-claude juncker could rubberstamped. does that fall into your hemisphere of interest? >> we have been watching that assess carefully. what itthat the ecb and is doing is more important to bond the markets. >> will it do anything to growth? >> i don't know whether they will be successful. good for, they will be fixed income. >> thank you very much. the director of global credit. >> they have ambitions to become the largest electronic payments company. next. ♪
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>> welcome back to countdown. >> 7:24 here in london. for have priced the shares the bottom of the range. they want to become europe's largest electronic payments company. here to discuss his route. tell us about this company. why they are selling it right now. >> they said last year they wanted to sell it because they want to focus on areas like
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cloud computing buri the markets have not been open for a while. we were running the numbers. up -- is up are is -- 2006.since 2000 sex >> is that what they want to do? >> they are starting to. they have not raised a lot in the ipo. and that is a very small part of this one billion goal they have you read they are getting their. back to the to go markets to raise the money want. >> fourth biggest ipo in france? >> yes. >> the money will be on an acquisitions spree >> that is what is would seem like.
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whore speaking to people are saying, because there are so much activity in the market right now, the buyer discount is back. a lot of the deals are getting priced at the bottom of the range. a lot on the first day of trading. trading down. >> what is the appeal of the company? it a payments business. the ceo has been saying, it is not just inks and retailers that are going online. we all are. i pay my bills online. i'm sure a lot of you have bills you pay online. were looking at larger markets for online payments. looking at those markets expanding. >> as we approach the end of the course, what does it mean for the ipo market? >> it has been busy. this quarter has been almost as active as the last. a lot of things coming to market not performing as well. liberty living got pulled. >> thank you very much.
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ruth david. >> is loud and proud on monday -- it is loud and proud and muddy. glass to marry. -- glastonbury. stay with us. ♪
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>> welcome back, i am mark barton. >> the market is selling dollars. around.uch all the way on dollar yen, hitting a five-week low. we have what are called stoploss is being triggered. an uneven recovery in the u.s. consumer spending, lower than estimated to read the market has and overly long and dollars.
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let's look at the new zealand dollar. a different story. here is the trajectory. the new zealand dollar is going from strength to strength. just shy of a record all-time high. which is 8843. just off the level of zero point 8843. basically, growth is significantly higher than the ability of the economy to keep up with it. the euro dollar, waiting for does confidence numbers. unchanged on the day. how they feel -- about the euro, it is time to get short. a pick up in value in the rupee. thanks, manus.
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these are the top headlines. a cease-fire called by ukraine's government. metpean leaders are set to the president in brussels to discuss possible new sanctions against russia. japan's consumer prices climbed at the fastest case in 32 years. core inflation rose in may from a year earlier, boosted by sales tax increases in utility charges. wage gains remain limited. it the former head of news corp.'s u.k. unit was cleared of all charges related to phone hacking, bribery, and perverting the course of justice. was atyear-old editor the center of a trial into wrongdoing at two tabloids. >> i am innocent it of the crimes i was charged with. i feel vindicated to the unanimous verdict.
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>> every year since 1970, leading pop band -- pop and rock artists have joined at the largest music festival in the world, glastonbury. our next guest works for a company that specializes in tracking the social media response. thank you for coming in. this is all very interesting. all the u.k. press has been obsessed with the effect it has been sunny and is going to rain for the perennial glastonbury headline. >> the dated is not reveal how would muddy it will be. tradition that you put your will is on. and not much else. >we are looking at the way in
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which people are tweeting at glastonbury. we are running a chart that shows the share of tweets that individual bands have during the course of the weekend. something we have done a few different festivals. from a punter's point of view, at the festival, it may be the best way to decide which stages not to go to. you can tell how crowded it will be based on the tweed levels. >> it must have a material impact on bands' sales. they see this as a big publicity exercise. andlastonbury is a cultural commercial event. although the organizers would not want to admit it, the amount of competition to attend any sales the vans see is pretty significant. that break as a
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result of coming. there is also a real interest in nots or artists that are really known to a younger generation. glastonbury has such a mixed gender graphic. -- demographic. johnny cash discovered a new audience. >> metallica. blondie this year. >> such established fan bases. do you think they can discover new fans? the new generation? hashis year, glastonbury gone high-tech. a couple of the telcos are putting huge amounts of 4g onto the site. so everyone can talk to each other and tweet. the value of social media and the virtualization of glastonbury, spreading of the on the site itself, is being empowered by this. what you see are artists like
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dolly parton, who do not have a young audience, and are not active on social media, we will see huge spikes. quick some of the british -- areome of the british press asking whether this could be the year that britain gets country. >> far be it for me to comment on that implication. >> i'm not against a bit of 95. i've been known to see karaoke. >> they were known many years ago for not embracing sharing music, metallica. case againstus napster. they have come a long and far since then. >> they have come full circle. the thing that is extraordinary about glastonbury is an irish book called digital medieval. it is a digital medieval village. you have these backward looking
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medieval metal bands like metallica in this kind of virtual digital world. >> with 4g. >> they have had to embrace it. >> they have. >> they are on spotify. >> what is the business lotto -- model for your average band? recordo be all about sales. now generation y does not necessary want to own the music. they might go to concerts. fans might get music that way. what did the -- what does the music lotto -- -- business model look like? >> for many bands, the gig is the place where they make the money. the recordings are use -- nice to have. that has changed. there have always been bands doing that. the rolling stones have always made more money for like performances. it is not as new as you might think. having said that, it is hard for young bands to make it into
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breakthrough. very expensive to start lane life -- playing live. >> you have told us -- what was the best moment? your glastonbury moment? ago, it was a little less rickety than now. i think jay-z was the revelation for me. >> that was controversial. >> that is what is is about. discovering things you didn't know you would like. >> when he sung -- >> an extraordinary moment. >> thank you for joining us. jeremy silver. executive chairman. >> israel does not have much water. he even less know. how come it is the world leader in making snow? we have been to the biggest and nonthermal desalination plant to find out. >> is the size of 14 football fields. fill 172ct enough to
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olympics wearing pools. >> the main thing you get is a huge amount of water. it supplies the need of 2.5 million people in israel. a city the size of chicago. >> he is the ceo of the company that built the plant. >> you would not have been able to finish the summer with water in the cap. core are these membranes. seawater is forced against them, phil. out thealt -- filtering salt. >> these are where the elements are separated from seawater. it goes on to the deceleration process. it is an excellent spot to give you a sense of the scale of this enormous plant. gras the thirst for water
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ows, desalinization plants will become more common. by 2018, it could rise to $15 million. in israeli startup sees the best desalinization opportunities in industry. they say their technology is leagues ahead. >> ours is better because we work at higher efficiency. waste less water. we greatly reduce the energy consumption. >> ide says their technology speaks for itself. perhaps most surprisingly, with an alpine snow maker. >> we wanted to desalinate water through freezing it. it was not economical. but we were left with his ability to freeze large quantities of water and makes no. >> be on the sneeze helps --'s geist notes -- beyond of the ski slopes, and have many projects in the pipeline including the western hemisphere's largest
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desalinization plant. >> what did you say any break their? >> goodume that was for -- work there, elliott. >> difficult. will be the break, what driving the final day of trading. minas -- manus will be here to tell all. ♪
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>> welcome back to countdown, i am anna edwards. topet's take a look at the corporate story. caroline is here. you are watching -- >> i am feeling sporty. i will keep my eye on a that is -- adidis. they also have their eye on whom a -- puma. the warm breeze flowing from
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nike. the fiscal fourth quarter, sales up 11%. they are saying next year will be strong. future orders they see growing 11%. largely powered by western europe, which is powering. also u.s. and china. even though profit was hit by volatility. when you translate that back into u.s. dollars, not so much bang for your bonk. but a company people are feeling more optimistic about. as nightly does well -- as naked do his rivals.e >>, sponsors uruguay -- puma sponsors uruguay. as a team, they are sponsored by puma.
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>> luis suarez has been banned from the next nine games. >> they have players to replace him. and nike is a favorite backs them. 10 million deaths -- >> will drive the markets this morning. bit of a reprieve. four straight days. theou are on a chart on 600, they are dipping lower. some reprieve. we are going to get some competence data in europe. that is expected to -- >some of the soft data. french record unemployment. that came out at around 5:00. the number of people looking for work rising. that is really the
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usual struggle that the heart of europe as. the u.s. is flicking through some of the data -- i was flicking through some of the data. that was a big one. rates could rise in the first quarter of 2015. >> some people suggesting he was doing a carney. >> he doesn't devote, but -- everybody gets hysterical. everybody talks -- anytime somebody talks about raising rates. if weould not be a day didn't talk about u.k. housing prices. >> how many -- seriously. >> today's home track shows you how desperate i am for a bit of a -- to be fair, it is.
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u.k. house prices rise at the slowest pace in five months. since january of this year. sentiment ofllout, the consumer. we are forward-looking -- the forward looking view is the highest. but our personal finances, we are more skeptical. a lot of people take away from the report, could have been a lot worse. thank you very much. >> the world cup from a trading perspective. an interesting graphic on volume. ♪
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>> welcome back to countdown, i am mark barton. >> time in london, 7:51. time for another look at the world cup. we are getting a take on foot off and traders. footballball -- traders. williams often plummet during matches. the graphs show what happens when the team and trade was plating. in chile, people are obsessed with football. >> they are. almost 100% of trading --
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>> no trading during the world cup chile matches. matches takee place, 75% drop. the most interesting ones england. it is the only country where, when england is not lane, the trading volume drops more. >> that might be something with the makeup of the london market. some serious went about electronic trading. computers do not watch football. we will go on to what will happen in today's trading session. the head of trading. >> does trading, visit ended during football games -- what is the drop-off? >> i think it has been quiet for the last couple of weeks. i thought it might pick up when england went out, but it has not. is a lack of volatility
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causing the lack of volume rather than the world cup. >> what is your focus into the trading day, aside from your company being on an acquisition spree? >> that is our focus. we are pleased to announced we is going to be the main focus. that is on the trading side to. eu, david- the cameron's and pending defeat is going to cause shockwaves. for the euro.ons the markets are going to grind up slowly on likable volume. shares to -- off their lows of the year, but down 40%. telling us, by the
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stock. are you still benitez go drum >> fish they need me tesco drum? >> they have to turn this around. such a big ship to turn around. , dominant player. the u.k. market is changing. tesco was well-placed to do it. it's going to take some time. they are taking a number of smaller sites from companies shedding sites. they are buying a lot of their sites. a lot of them seem more smaller stores come out. it should be a good opportunity. reade we going to see some across the atlantic from those numbers from nike? in the chinese part of their business? is that going to flow to european sportswear makers? >> i think so.
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the sports baker's are at a suites hot curry they have the world cup which is giving them fantastic boosts. they are managing to get into fashion. becoming premium brands. in shanghai, the nike store is right and from -- in front of people's where. the demand from china and the emerging markets is helping, there are increasing opportunities to grow their brand quickly. >> joe, 20 seconds of the bank of england. tinkering on loans to in, and stress testing applicants. be -- carney to could have been a little tougher. definitely trying not to raise interest rate. trying to talk down the housing market may. i don't think that will translate to interest rate
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rises. >> thank you very much for jurors in us -- joining us. move" is next. we will be talking about construction in or to go. >> have a good weekend. ♪ . .
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>> welcome to "on the move." we are just moments away from the start of european trading. futures pointing to a higher open in europe as investors await data on u.s. consumer confidence. here with me now, hans nichols, manus cranny, caroline hyde. >>'s start in brussels three there is an eu summit in just moments. the association agreement between the eu, moldova, georgia, and, importantly, the ukraine, will be signed. looking at the race for who the next eu commission president will be. >> i am focusing on barclays.
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customers from their dark pool? the challenge for antony jenkins, take action and take action swiftly. it will impact the potential size of the fine that will be levied against barclays. out onlayers battle it the pitch, companies do battle too. rowingfootball business more than 20%, gaining on adidas. i will show how nike is spending big on players and teams. adidas may have scored a bit of an own goal with luis suarez. what we are watching this morning. european equity markets are opening up. that's checking with our markets editor, manus cranny. >> we are hoping that these equity markets will get a reprieve


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